Sustainable Land Management Project

E1144

Royal Government of Bhutan Ministry of Agriculture National Soil Service Center

SUSTAINABLE LAND MANAGEMENT PROJECT

Environmental Management Framework

Final

24 March 2005

Thimphu, Bhutan TABLE OF CONTENTS

Acronyms and Glossary of Bhutanese Terms...... iv

Executive Summary...... vii

Chapter 1: Introduction...... 1 1.1 Background...... 1 1.2 Objectives...... 1 1.3 Methodology...... 2

Chapter 2: Project Description...... 4 2.1 Overview...... 4 2.2 Project Components...... 4

Chapter 3: Current Environmental Situation...... 10 3.1 Country Environmental Situation...... 10 3.1.1 Geopolitical Situation...... 10 3.1.2 Physiography...... 11 3.1.3 Climate...... 11 3.1.4 Geology...... 11 3.1.5 Land Use and Cover...... 12 3.1.6 Natural Vegetation...... 12 3.1.7 Watersheds...... 13 3.1.8 Biodiversity...... 13 3.1.9 Protected Areas...... 14 3.2 Environmental Situation of Pilot Project Sites...... 15 3.2.1 Radhi Geog, Trashigang Dzongkhag...... 16 3.2.2 Nangkor Geog, Zhemgang Dzongkhag...... 18 3.2.3 Phuentsholing Geog, Chhukha Dzongkhag...... 20

Chapter 4: Existing National Policy and Legal Framework for Environmental Management...... 23 4.1 General Overview...... 23 4.2 Brief Descriptions of Existing Policies, Laws and Regulations...... 23 4.2.1 National Forest Policy, 1974...... 23 4.2.2 Forest and Nature Conservation Act, 1995...... 24 4.2.3 Forest and Nature Conservation Rules, 2000...... 24 4.2.4 Environmental Assessment Act, 2000...... 24 4.2.5 Regulation for the Environmental Clearance of Projects, 2002...... 25 4.2.6 Regulation for Strategic Environmental Assessment, 2002...... 26 4.2.7 Pesticides Act of Bhutan, 2000...... 26 4.2.8 Mines and Minerals Management Act, 1995...... 26 4.2.9 Biodiversity Act of Bhutan, 2003...... 27 4.2.10 DYT and GYT Chathrims, 2002...... 27 4.3 Comparative Assessment in Relation to WB Safeguard Policies...... 29 4.3.1 Environmental Assessment (OP 4.01)...... 29 4.3.2 Natural Habitats (OP 4.04)...... 30 4.3.3 Forestry (OP 4.36)...... 31 4.3.4 Pest Management (OP 4.09)...... 31

i 4.3.5 Cultural Property (OP 4.11)...... 32 4.3.6 Involuntary Resettlement (OP 4.12)...... 33 4.3.7 Indigenous Peoples (OP 4.10)...... 34 4.3.8 Safety of Dams (OP 4.37)...... 35 4.3.9 Projects in Disputed Areas (OP 7.60)...... 35 4.3.10 Projects on International Waterways (OP 7.50)...... 35 4.3.11 Comparative Summary...... 36

Chapter 5: Stakeholder Consultations...... 38 5.1 Overview...... 38 5.1.1 Consultations with Stakeholders at the Local Level...... 38 5.1.2 Consultations with Stakeholders at the Central Level...... 38 5.2 Summary of Key Findings...... 39 5.2.1 Local Perception and Understanding of the Project...... 39 5.2.2 Environmental Impacts and Issues...... 39 5.2.3 Implementation of Environmental Management Regulations...... 40 5.2.4 Capacity Building Needs...... 41

Chapter 6: Operational Framework for Environmental Management...... 42 6.1 Purpose and Description...... 42 6.2 Potential Environmental Impacts and Mitigation Measures...... 42 6.3 Environmental Screening and Assessment...... 49 6.3.1 Negative List of Activities...... 49 6.3.2 Initial Environmental Screening...... 49 6.3.3 Environmental Assessment...... 50 6.3.4 Public Consultation and Disclosure...... 51 6.4 Capacity Building...... 51 6.5 Monitoring Framework...... 53 6.5.1 Compliance Monitoring...... 53 6.5.2 Impact Monitoring...... 54 6.6 Institutional Arrangement...... 56 6.6.1 Local Level...... 56 6.6.2 Dzongkhag Level...... 58 6.6.3 Central Level...... 59 6.7 Budget Estimate...... 61 6.8 Other Donor Support...... 61

Annexes Annex 1: Literature Reviewed/ Referred to...... 65 Annex 2: List of People Consulted...... 68 Annex 3: Checklist of Guide Topics used for Field Consultations...... 72 Annex 4: Initial Environmental Screening Sheet...... 74 Annex 5: Environmental Information for Environmental Clearance...... 76 Annex 6: Environmental Impact Mitigation Plan...... 77 Annex 7: List of Activities Assigned with Competent Authorities...... 78 Annex 8: List of Activities not Requiring Environmental Clearance...... 80 Annex 9: List of Globally Threatened and Nationally Protected Species in Bhutan...... 82 Annex 10: Pesticides classified as Class Ia, Ib and II by WHO...... 84 Annex 11: Pesticides Distribution in Bhutan 1998/99-2002/03...... 91 Annex 12: Samples of IPM Extension Leaflets...... 92 Annex 13: Draft Terms of Reference of Dzongkhag Environmental Committee...... 96

ii iii List of Figures and Tables

Figure 1: Administrative Map of Bhutan...... 10 Figure 2: Location Map of the Pilot Project Sites...... 15 Figure 3: Flow Chart on Environmental Screening Process and Outcomes…………………….. 63 Figure 4: Flow Chart Illustrating EA Implementation Responsibilities...... 64

Table 1: Land Use/ Cover Figures by Percentage...... 12 Table 2: Vegetation Zones of Bhutan...... 13 Table 3: Protected Areas of Bhutan...... 14 Table 4: Comparison of WB Safeguard Policy Requirements and Existing RGoB Provisions.....36 Table 5: Summary of Primary Stakeholders Consulted at the Local Level...... 38 Table 6: Potential Adverse Environmental Impacts and Corresponding Mitigation Measures.....43 Table 7: Negative List of Activities...... 49 Table 8: EMF-related Capacity Building Plan...... 52 Table 9: Impact Monitoring Table...... 54 Table 10: Year-wise Budget Estimate for EMF...... 61

iv ACRONYMS AND GLOSSARY OF BHUTANESE TERMS

ACRONYMS

CA Competent Authority DA Dzongkhag Administration DANIDA Danish International Development Assistance DEC Dzongkhag Environmental Committee DoA Department of Agriculture DoF Department of Forestry DoL Department of Livestock DSLR Department of Survey and Land Records DYT Dzongkhag Yargye Tshogdu EA Environmental Assessment EAA Environmental Assessment Act 2000 EC Environmental Clearance ECOP Environmental Codes of Practice EMF Environmental Management Framework EUSPS Environment and Urban Sector Programme Support FMU Forest Management Unit FNCA Forest and Nature Conservation Act 1995 FNCR Forest and Nature Conservation Rules 2000 FYM Farmyard Manure GEF Global Environment Facility GSFC Geog SLMP Field Coordinator GSPT Geog SLMP Planning Team GYT Geog Yargye Tshogchung ha hectare IPM Integrated Pest Management IPNM Integrated Plant Nutrient Management LUPP Land Use Planning Project masl meters above sea level mm millimeters MoA Ministry of Agriculture MHCA Ministry of Home and Cultural Affairs MTAC Multi-disciplinary Technical Advisory Committee MTI Ministry of Trade and Industry MWHS Ministry of Works and Human Settlement NEC National Environment Commission NECS National Environment Commission Secretariat NPPC National Plant Protection Center

v NSB National Statistical Bureau (formerly Central Statistical Organization) NSSC National Soil Service Center OF Operational Framework PAB Pesticides Act of Bhutan 2000 PMU Project Management Unit PSC Project Steering Committee PY Project Year RECOP Regulation for the Environmental Clearance of Projects 2002 RGoB Royal Government of Bhutan RNR Renewable Natural Resources RNRRC Renewable Natural Resources Research Center SALT Sloping Agriculture Land Technology SLM Sustainable Land Management SLMP Sustainable Land Management Project SLMP-WG Sustainable Land Management Project-Working Group WB World Bank WHO World Health Organization

GLOSSARY OF BHUTANESE TERMS

Chathrim Act, rules and regulations, codes of conduct Chhoerten Stupa Chhuzhing Wetland cultivation Chiog A group of households for which a tshogpa is responsible. Larger villages are usually divided into two or more chiogs while smaller villages constitute a single chiog. Chupon Village messenger Dungkhag Sub District Dungpa Administrator of Sub District Dzongdag District Administrator Dzongkhag District Dzongkhag Yargye Tshogchung District Development Committee Geog Administrative block Geog Yargye Tshogchung Block Development Committee Goendey Monastic institution Gup Elected head of a geog Kamzhing Dryland cultivation Lhakhang Temple

vi Mangmi Elected representative of a geog, who also assumes the role of deputy Gup Mani dangrem Prayer instrument Nangten Religious relic/ treasure Ney Sacred natural site Neykhang Dwelling place of local deity Ngultrum Bhutanese currency, pegged to Indian Rupee Sokshing Forest registered in a household’s name for collection of leaf litter for use in farm yard manure Tsamdo Land over which people own customary grazing rights Tseri Slash and burn cultivation Tshogpa Representative of a chiog

vii EXECUTIVE SUMMARY

Introduction

To address land degradation problems and issues – both longstanding and emerging – the Royal Government of Bhutan is initiating Sustainable Land Management Project with technical assistance from the World Bank and grant financing from the Global Environment Facility. The Danish International Development Assistance is contributing parallel funding through its Environment and Urban Sector Programme Support, focusing on policy, planning and regulatory work at the central level. The overall goal of the Project is to help realize local, regional and global environmental benefits from sustainable land management planning, land use and improved livelihoods in Bhutan. Within this goal, the project development objective is to enhance national land management planning and adoption of sustainable local land use practices. To achieve the project development objective, the Sustainable Land Management Project will focus on four complementary components: (1) SLM planning, policy, legislative and regulatory framework; (2) demonstration and validation of SLM approaches on the ground; (3) institutional system for sustaining multi-sectoral approach to SLM; and (4) establishment of project management. On-the-ground investments for sustainable land management will be piloted at three sites, namely Radhi geog in Trashigang, Nangkor geog in Zhemgang, and Phuentsholing geog in Chhukha. After the second year of the project, the investments will be scaled-up to cover another six geogs based on lessons learnt and validation of best practices from the pilot geogs.

Rationale

While the Project is inherently about improved environmental management, certain project activities may have subtle or indirect adverse environmental impacts which if overlooked may accrue into bigger impacts. It is in this context and in keeping with the principle of environmental sustainability which the RGoB and its project partners – WB, GEF and DANIDA – share that this Environmental Management Framework has been prepared.

Specifically, the Environmental Management Framework:

 describes the country’s environmental conditions as well as those pertaining to the sites identified for implementation of the project interventions in the field;

 examines the country’s existing policies, regulations, guidelines and procedures for environmentally sustainable development in relation to the WB environmental safeguard policies that are likely to be triggered by the project;

viii  assesses local perception and understanding of the project especially with regards to its benefits, impacts and issues and the willingness and capacity to address potential adverse environmental impacts;

 identifies potential adverse environmental impacts of probable project activities and provides corresponding mitigation measures;

 provides a framework to operationalize environmental management measures based on existing national environmental policies, regulations and guidelines, and in concord with the requirements of relevant WB safeguard policies.

Methodology

The Environmental Management Framework has been prepared using information derived from literature review and stakeholder consultations. Various policies, laws, regulations and guidelines related to environmental management were extensively reviewed to make a comparative assessment with WB safeguard policies relevant to the project. In addition, documents pertaining to SLMP planning were reviewed. This included the report of local level stakeholder workshops conducted in the pilot sites and the Report of Project Formulation Processes and Outcomes, which is a consolidation of the processes and outcomes of local level stakeholder workshops, project design workshop and decision makers’ workshop. Stakeholder consultations were done at both local and central levels. Local-level consultations were carried out with primary stakeholders, specifically the local communities, GYT members and geog RNR extension agents, for 2-3 days in each pilot project site. The consultations with local communities involved group discussions and household interviews. Altogether, 67 local people were consulted: 18 in Radhi geog; 26 in Nangkor geog; and 23 in Phuentsholing geog. At the central level, consultative meetings were held with the SLMP-Working Group, which includes representation from all the major stakeholder agencies: Ministry of Works and Human Settlement; Ministry of Trade and Industry; National Environment Commission Secretariat; and the Ministry of Agriculture and its Departments of Agriculture, Forestry, Livestock, and Survey and Land Records.

Environmental Policies

World Bank environmental safeguard policies that are likely to be triggered by this Project pertain to Environmental Assessment (OP 4.01), Natural Habitats (OP 4.04), Forestry (OP 4.36), Pest Management (OP 4.09), and Cultural Property (OP 4.11).

Bhutan’s Environmental Assessment Act, 2000, establishes procedures for the assessment of potential effects of strategic plans, policies, programs, and projects on the environment, and for the determination of policies and measures to reduce potential adverse effects and to promote environmental benefits. It makes environmental clearance mandatory for any project/ activity that may have adverse impact(s) on the environment. To support the implementation of the Environmental Assessment Act, 2000, the National Environment Commission has issued the Regulation for the Environmental Clearance of Projects, 2002, defining responsibilities and procedures for the implementation of the environmental assessment process. Furthermore, sectoral guidelines currently exist for highways and roads, industrial projects, mines, urban development, forestry, hydropower, power transmission and distribution lines, and tourism projects; environmental codes of practice for storm water drainage, underground and overhead utilities, and tourism activities; and environmental discharge standard.

ix The National Forest Policy, 1974, places priority on conservation of forests and associated resources for their ecological values, such as soil and water conservation and contribution to production of food, water and energy. Economic benefit from forest resources is considered secondary and is to be derived within sustainable limits. The Forest and Nature Conservation Act, 1995, is the principal legislation for forest and nature conservation. The legislation is enforced through the implementation of Forest and Nature Conservation Rules, 2000, which covers forest management, prohibitions and concessions in Government Reserved Forests, forestry leases, social and community forestry, transport and trade of forestry produce, protected areas, wildlife conservation, soil and water conservation, and forest fire prevention.

Pesticide procurement and distribution is well controlled through a centralized system and are legally governed by the Pesticides Act of Bhutan, 2000. The purpose of the Act, among other things, is to ensure that integrated pest management is pursued, limiting the use of pesticides as the last resort and minimizing harmful effects on humans and the environment consequent to the application of pesticides. Integrated pest management guidelines are in place and being implemented as a regular programme of the National Plant Protection Center.

Although currently there is no specific legislation for protection of cultural properties, provisions for protection and maintenance of various cultural properties are embedded in various laws and regulations, particularly Thrimzhung Chenmo (the mother law) and the GYT and DYT Chathrims, 2002. Moreover, official clearance of the Ministry of Home and Cultural Affairs and the consent of the concerned GYT and DYT are pre-requisite for environmental clearance of any project/ activity that is located within 50 meters of a sacred landscape or site.

In addition to above and in the context of decentralized governance, the DYT and GYT Chathrims, 2002, mandate the DYT and GYT to exercise authority and regulations for environmental management at the local level.

Potential Environmental Impact of the Project

The potential adverse environmental impacts from the project are likely to be small and limited with on-the-ground investments taking place at household and chiog levels. On the whole, the project has been identified as a “Category B” project based on World Bank classification for Environmental Assessment. The impacts are expected to be moderate to low, for which mitigatory measures can be readily designed and applied. As currently conceived, project activities that may have some adverse environmental impacts include cash crop production, promotion of improved cattle breeds and stall-feeding, swapping or conversion of land, reforestation/ afforestation, community and homestead forest plantations, construction of soil stabilization/ protection structures, rehabilitation of small rural infrastructure, and alternate income-generating activities. By and large, these activities will be contributing to the improvement of environmental conditions and local livelihoods. However, it is recognized that these activities will have certain subtle or indirect adverse environmental impacts for which simple mitigatory measures will be necessary. For instance, increased use of surrounding forests for poles and small timber for construction of cattle sheds as a result of promotion of stall-feeding to reduce overgrazing. Another example is that of impact on forest regeneration due to collection of wildlings for use in community and homestead forest plantations. A list of potential adverse environmental impacts from the project is provided in Chapter 6 Section 6.2 along with corresponding mitigation measures. This list is indicative and has been provided to illustrate the kinds of environmental impacts that can be associated with the project activities. During project implementation, site- and design-specific environmental assessments will be carried out to more

x accurately and comprehensively identify potential adverse environmental impacts and corresponding mitigation measures.

During field consultations it was evident that the local communities were willing and confident to implement mitigation measures, where necessary. They felt that the project will not have any significant potential adverse environmental impact(s) and, therefore, will entail simple mitigation measures which they can readily implement with guidance from geog project team and geog RNR extension agents. The geog RNR extension agents shared the views and confidence of the local communities to implement mitigation measures and expressed their own ability to provide technical guidance.

Operationalizing the Environmental Management Framework

Negative List of Activities

This negative list of activities has been compiled based on the laws, regulations and guidelines of the Royal Government of Bhutan and the World Bank safeguard policy requirements. Any activity belonging to this list will not be included in the project:

Activity Source/ Basis Any activity involving construction, settlement, land use, plantation and Forest and Nature Conservation Rules extraction of forest products inside the core zone of a protected area. 2000 – Chapter VI Sec 62 Any activity that entails conversion of natural habitat harbouring any WB Safeguard Policy on Natural globally threatened or nationally protected species. Annex 9 provides the list Habitats (OP 4.04) of globally threatened and nationally protected species of birds and mammals in Bhutan. Any activity that may cause disturbance or pollution of a water source or Forest and Nature Conservation Rules watercourse 2000 – Chapter III Sec 22 (1) a and b Any activity that involves cutting of trees or land clearance within 100 feet Forest and Nature Conservation Act on either side of the banks or edge of the rivers, streams, water courses or 1995 – Sec 14 (a) water sources kept as riparian reserve for conservation Forest and Nature Conservation Rules 2000 – Chapter VIII Sec 70 (6) c Any activity that involves land clearance on slopes greater than 45 degree Forest and Nature Conservation Act (100%); 1995 – Sec 14 (a) Forest and Nature Conservation Rules 2000 – Chapter VIII Sec 70 (6) c Any activity that involves the procurement and/or use of pesticides WB Safeguard Policy on Pest categorized as Class Ia, Ib and II as per WHO Classification. Annex 10 Management (OP 4.09) provides the list of pesticides belonging to the above classes.

Initial Environmental Screening

Before selection, every proposed project activity will be subjected to initial environmental screening to determine if it: (a) belongs to the negative list of activities; (b) does not belong to the negative list but requires environmental clearance according to Annex 2 of the Regulation for the Environmental Clearance of Projects, 2002; and (c) does not belong to the negative list and does not require environmental clearance. If it is (a), the proposed activity will not be taken up. If it is (b), the proposed activity will be subjected to environmental assessment procedures established by the Royal Government of Bhutan. If it is (c), the proposed activity will be included in the project. However, if it is likely to have certain adverse environmental impact, an environmental impact mitigation plan (format 3 provided in Annex 6) will be prepared for internal project use.

xi Environmental Assessment

When initial environmental screening determines that the proposed activity requires environmental clearance in accordance with the Regulation for the Environmental Clearance of Projects, 2002, the formal EA process will be triggered.

Field investigation will be carried out and environmental information will be prepared for activities requiring environmental clearance by the chiogs. They will be guided and assisted by the Geog SLMP Planning Team in the field investigation and preparation of the environmental information (format 2 provided in Annex 5). For activities for which guidelines or environmental codes of practice (ECOPs) have been issued by the National Environment Commission Secretariat or the Competent Authority, these guidelines or ECOPs will be used in the preparation of environmental information. The environmental information will be reviewed and environmental clearance issued/ denied by the Dzongkhag Environmental Committee if it has been as assigned the Competent Authority for the proposed activity. If the Dzongkhag Environmental Committee is not the Competent Authority for the proposed activity, it will forward the environmental information – after ensuring it is complete and clear – to the concerned central Ministry/ Department assigned as the Competent Authority according to Annex 2 of the Regulation for the Environmental Clearance of Projects, 2002, or to the National Environment Commission Secretariat if the proposed activity is not listed in Annex 2 of the aforesaid Regulation.

When environmental clearance is issued, the concerned agency will lay down clear terms and conditions under which the environmental clearance has been issued. It will also announce the issuance of the environmental clearance to the public and make information available to them. On the other hand, if environmental clearance is denied, the concerned agency will provide reasons of denial to the applicant.

Irrespective of who the Competent Authority is, all environmental clearance will require the administrative approval of the concerned Dzongdag in accordance with the Regulation for the Environmental Clearance of Projects, 2002.

Public Consultation and Disclosure

The SLMP is not likely to have any activity with significant potential adverse social impact. Land acquisition or physical relocation of local people is not envisaged under the project. Limited adverse social impacts are expected from certain probable project activities, e.g. restriction of access to natural resource to curb land degradation in certain situations. However, such interventions will be temporary in nature to check further land degradation and allow recuperation of vulnerable areas. Also, adverse social impacts from such interventions will be managed through a process of community orientation, consultation, participation and consensus building. This process is outlined in a separate document titled “Social Assessment”. Environmental and social screening will be done in concert, starting from the chiog level, as a part of the overall consultative and participatory approach for planning of project activities.

As for public consultation in preparation of environmental information, the local community themselves will be directly responsible for preparing the environmental information with guidance and assistance from the Geog SLMP Planning Team. Nevertheless, it will be useful to conclude the process with a chiog meeting to present the contents of the environmental information and confirm community agreement with the information before submitting to the

xii DEC. List of participants of this meeting will need to be annexed to the environmental information.

With respect to public disclosure, the agency issuing the environmental clearance will announce the issuance of environmental clearance to the public and make information available to them in accordance with the requirements of the Environmental Assessment Act, 2000, and Regulation for the Environmental Clearance of Projects, 2002. Only after the public disclosure requirement has been fulfilled, the environmental clearance will become effective. At the local level, on receiving environmental clearance, the tshogpa will convene a chiog meeting to inform the local people about it and the terms and conditions under which it has been issued.

Monitoring

There will be two types of monitoring. One will be compliance monitoring and the other will be impact monitoring. Compliance monitoring will be done by means of field checks and review of periodic project progress reports which will include a section on implementation of environmental impact mitigation measures. Field checks will be sporadic by National Environment Commission Secretariat or relevant Competent Authority, periodic (once in six months) by the Dzongkhag Environmental Committee, and regular (at least once in every three months) by the Geog SLMP Planning Team as the project proponent at the field level. Regular monitoring will be done as a part of the overall project monitoring and the results will be included in the quarterly project progress reports. Impact monitoring will be done on a biennial basis (once every two years) by a team made up of representatives from the Project Management Unit, National Environment Commission Secretariat, Department of Forestry, and concerned Dzongkhag Administration. The table for impact monitoring has been provided in Chapter 6 Section 6.5.2.

Institutional Arrangement

The implementation of the Environmental Management Framework will involve a number of institutions ranging from chiogs at the local community level to line Ministries/ Departments and National Environment Commission Secretariat at the central level.

Chiogs will be responsible for field investigation, preparation of environmental information and implementation of mitigation measures with guidance and assistance from the Geog SLMP Planning Team. The Geog SLMP Field Coordinator will have the responsibility of reviewing and verifying environmental information prepared by the chiogs, oversight and monitoring in the field with the support of the Geog SLMP Planning Team, and mobilization and coordination of technical assistance required for implementation of mitigation measures.

The Dzongkhag Environmental Committee will be responsible for reviewing environmental information and issuing/ denying environmental clearance for activities that are assigned to them as the Competent Authority, forwarding environmental information to the relevant Competent Authority or the National Environment Commission Secretariat for activities for which they are not the Competent Authority, and periodic monitoring to ensure compliance with environmental terms and conditions.

At the central level, the relevant Competent Authority will review environmental information and issue/deny environmental clearance for activities listed in Annex 2 of the Regulation for the Environmental Clearance of Projects, 2002, and the National Environment Commission Secretariat will do the same for activities not listed in Annex 2. The relevant Competent

xiii Authority and the National Environment Commission Secretariat will also have the responsibility for sporadic field checks to ensure compliance.

The Project Management Unit will keep track of the implementation of the Environmental Management Framework as a part of their overall project management responsibility. It will also have the responsibility to coordinate between the National Environment Commission Secretariat/ central agencies and geog project team to implement capacity building activities reflected in this Framework.

Specific institutional responsibilities are detailed in Chapter 6 Section 6.6.

Capacity Building

Proposed capacity building for EMF under this project is shown as under:

 Training of Geog SLMP Field Coordinators, Geog SLMP Planning Teams, GYT members, geog RNR extension agents, and DEC members to sensitize them on Environmental Management Framework in general and provide them with knowledge and skills specifically to guide and assist the local communities in conducting field investigation, identifying potential adverse environmental impacts and mitigation measures, filling in initial environmental screening sheet, and preparing environmental information;

 Development and dissemination of Environmental Assessment manual for use at geog/ chiog level. This manual will be bilingual (Dzongkha and English) with simple text and pictures explaining the various steps and the role and responsibilities at dzongkhag, geog and chiog levels, where relevant;

 Provision of field equipment to geog project team for environmental assessment-related data collection and monitoring;

 Institutional support toward the establishment of an Environmental Unit at Phuentsholing City Corporation through training of a specialist for environmental assessment and monitoring.

Apart from the above, several training activities have been proposed in the overall project design that will contribute to better environmental management and impact mitigation. These include awareness building and training on land degradation problems, integrated pest management, integrated plant nutrient management, irrigation water management, sloping agriculture land management, improved livestock and pasture management, bioengineering, and catchment protection and management.

Budget Estimate

A sum of US$ 151,000 is estimated for implementation of the Environmental Management Framework over the project period. Of this, US$ 97,600 is projected for capacity building and US$ 53,400 for environmental assessment preparation and monitoring activities. Budget estimate details are provided in Chapter 6 Section 6.7.

xiv Chapter 1 INTRODUCTION

1.1 BACKGROUND

As a result of rugged mountain terrain, fragile geologic conditions and heavy monsoon rains, the Bhutanese landscape is inherently susceptible to land degradation. In addition, unsound land use practices, inappropriate development of infrastructure, and unsustainable natural resource use are exacerbating land degradation in various parts of the country. Where population density is high and human activities intense, land degradation is most severe – causing loss of life and property, reduced productivity from public and private investments in infrastructure, farmland and businesses, and a cumulative undermining of environmental sustainability. Land degradation is also due to intensive human pressure emanating from the fact that the country’s usable land resource is limited due to difficult and high mountain terrain, vast areas of snows and barren rocks, and large forest coverage – which is currently 72.5 per cent (including scrub forest) and is mandated to be maintained at least at 60 per cent in perpetuity. Arable agriculture land is in fact less than 8 per cent, mostly located in the central valleys and southern foothills. This limited area must support agriculture, on which the majority of the population subsists, and the other development activities of a population which is currently growing at 2.5 per cent each year.

The Royal Government of Bhutan (RGoB) is initiating Sustainable Land Management Project (SLMP) with technical assistance from the World Bank (WB) and grant financing from the Global Environment Facility (GEF). The Danish International Development Assistance (DANIDA) is contributing parallel funding through its Environment and Urban Sector Programme Support (EUSPS), focusing on policy, planning and regulatory work at the central level. The overall goal of the SLMP is help to realize local, regional and global environmental benefits from Sustainable Land Management planning, land use and improved livelihoods in Bhutan. Within this goal, the project development objective is to enhance national land management planning and adoption of sustainable local land use practices. To achieve the PDO, the Sustainable Land Management Project will focus on four complementary components: (1) SLM planning, policy, legislative and regulatory framework; (2) demonstration and validation of SLM approaches on the ground; (3) institutional system for sustaining multi-sectoral approach to SLM; and (4) establishment of project management. On-the-ground investments for sustainable land management will be piloted at three sites, namely Radhi geog in Trashigang, Nangkor geog in Zhemgang, and Phuentsholing geog in Chhukha. After the second year of the project, the investments will be scaled-up to cover another six geogs based on lessons learnt and validation of best practices from the pilot geogs.

Environmental sustainability is one of the pillars of the country’s development philosophy of Gross National Happiness. The RGoB seeks to ensure that all development policies, programmes and activities are formulated and carried out in an environmentally sound manner. This stands in harmony with the principle of environmentally sustainable development propounded by its project partners – WB, GEF and DANIDA.

1.2 OBJECTIVES

In keeping with the principle of environmentally sustainable development that the RGoB and its project partners share, it is important that the environmental situation in which the project will take place is understood, potential environmental impacts of the project are identified and

1 accordingly mitigation framework is formulated to ensure environmental sustainability of the project.

Specifically, the EMF:

 describes the country’s environmental conditions as well as those pertaining to the sites identified for implementation of the project interventions in the field;

 assesses local perception and understanding of the project especially with regards to its benefits, impacts and issues and the willingness and capacity to address potential adverse environmental impacts;

 identifies potential adverse environmental impacts of probable project activities and provides corresponding mitigation measures;

1.3 METHODOLOGY

The EMF has been prepared using information derived from two complementary methods – literature review and stakeholder consultations.

1.3.1 Literature Review

Various policies, laws, regulations and guidelines related to environmental management were extensively reviewed to make a comparative assessment with WB safeguard policies relevant to SLMP. These included the Environmental Assessment Act 2000, Regulation for the Environmental Clearance of Projects, existing sectoral Environmental Assessment guidelines, National Forest Policy 1974, Forest and Nature Conservation Act 1995, Forest and Nature Conservation Rules 2000, Pesticides Act of Bhutan 2000, and Dzongkhag Yargye Tshogdu and Geog Yargye Tshogchung Chathrims, 2002.

In addition, documents pertaining to SLMP planning were reviewed. This included: (1) compiled notes of local level stakeholder workshops conducted in the pilot sites in May/June 2004 with facilitation by members of SLMP-Working Group and visiting WB/GEF consultant; and (2) Report of Project Formulation Processes and Outcomes, which is a consolidation of the processes and outcomes of local level stakeholder workshops, project design workshop and decision makers’ workshop. These reports provided an understanding of the project rationale and design, participation of stakeholders in the planning process at various levels, and their perception of land degradation issues and benefits of SLMP.

2 1.3.2 Stakeholder Consultations

Consultations with Primary Stakeholders at the Local Level

Field trips were undertaken to all the three pilot sites in December 2004/ January 2005. During these trips consultations were held with primary stakeholders, namely local communities, GYT members and geog RNR extension agents for 2-3 days in each site. The field consultations were basically done in two forms: one, group discussions with a cross-section of men and women, including some who were GYT members; and, two, interviews of individual households. During the latter, attention was given to including households belonging to vulnerable group so that local views and concerns were more broadly captured. A checklist of guide topics was used for the consultations to ensure that key information needs were captured whilst allowing the interactions to be eclectic. The checklist is appended as Annex 3.

All in all, 67 local people were consulted: 18 in Radhi geog; 26 in Nangkor geog; and 23 in Phuentsholing geog. Of the total, 27 (40.3 per cent) were women and 32 (47.8 per cent) belonged to the vulnerable group.

In addition to the primary stakeholders at the local level, some of the Dzongkhag Environmental Committee members were met. The full list of people consulted is provided in Annex 2.

Consultations with SLMP-Working Group

The SLMP-Working Group (SLMP-WG) is a multi-disciplinary team formed for formulation of SLMP. Consultations with the SLMP-WG were important for two reasons. One, the SLMP-WG basically is made up of central level agencies who have major stake in sustainable land management. It includes representation from the Ministry of Trade and Industry (MTI), Ministry of Works and Human Settlement (MWHS), National Environment Commission Secretariat (NECS), and the Ministry of Agriculture (MoA) and its Departments of Agriculture (DoA), Forestry (DoF), Livestock (DoL), and Survey and Land Records (DSLR). Two, these agencies make up all of the currently assigned Competent Authorities for environmental clearance of activities listed in Annex II of the Regulation for the Environmental Clearance of Projects, 2002.

Consultative meetings were held with the SLMP-WG to enlist their inputs and consensus on adverse environmental impacts and mitigation measures, environmental screening and clearance process, capacity building, institutional role and responsibilities, and monitoring framework. Progressive drafts of the EMF were also circulated to the SLMP-WG for review and comments.

3 Chapter 2 PROJECT DESCRIPTION

2.1 OVERVIEW

The overall goal of the SLMP is help to realize local, regional and global environmental benefits from sustainable land management planning, land use and improved livelihoods in Bhutan. Within the above overall goal, the PDO is that of enhancing national land management planning and adopting sustainable local land use practices. To achieve the PDO, the SLMP will focus on four complementary components: (1) SLM planning, policy, legislative and regulatory framework; (2) demonstration and validation of SLM approaches on the ground; (3) institutional system for sustaining multi-sectoral approach to SLM; and (4) establishment of project management.

On-the-ground planning and investments will be piloted in three geogs: Radhi geog in Trashigang, Nangkor geog in Zhemgang, and Phuentsholing geog in Chhukha. These are located in the east, east central and south western regions of the country respectively. After the second year of the project, the project as currently conceived envisages to scale up on-the-ground investments another six geogs based on lessons learnt and validation of best practices from the pilot geogs.

2.2 PROJECT COMPONENTS

Component 1: SLM Planning, Policy, Legislative, and Regulatory Framework

This component will have the following outputs and activities:

Output 1.1: Principles of SLM planning included in 10th 5-Year Plan by PY 2

The PMU and the MTAC will bring lessons learnt back from field to central level and inform the Guidelines issued for preparation of 10th Five-Year Plan.

Output 1.2: SLM approach included in the target dzongkhags’ and geogs’ annual development planning process in PY 2 onwards

The geog RNR officers and the SLM coordinator will interact regularly with Dzongkhag Administration, Dzongkhag SLM Committee, RNR and Planning Officers and support the 10th Five Year Planning process in topics related to SLM.

Output 1.3: SLM principles integrated into sector level policies (likely to be national watershed management policy and land use planning policy, and grazing) by PY 4

The PMU and the MTAC will interact closely with the MoA’s Policy and Planning Division and the DANIDA-EUSPS for inputs of SLM lessons to formulation of policies.

Output 1.4: SLM lessons brought into revision of key acts (likely to be Nature and Forest Conservation Act, draft Grazing Act etc) PY 3

The PMU and the MTAC will interact closely with the MoA’s Policy and Planning Division and the DANIDA-EUSPS for inputs to formulation of revised and new acts.

4 Output 1.5: Local level by-laws formulated by geog and local communities for SLM outcomes in PY 2, 3, 4, 5, 6

The participatory planning process that underlies the formulation of chiog and geog SLM framework and action plans will support the on the ground development of local level chiog and geog rules and by-laws that build on traditional natural resources management systems and support long term sustainability of project impact.

Component 2: Pilot site SLM approaches demonstrated and validated

Output 2.1: Local inventories, resource assessment and socio-economic profile, including tenure context and regimes, established to guide the local level planning of SLM activities by 6th Month onwards

PMU effectuates Department of Survey and NSSC to assess existing geo-informatics for the three pilot sites and sends teams to the field within the first months of project to prepare the inputs to the SLM Framework Plan and continues this intervention as the project develops to other geogs PMU effectuates the deployment of consultants to prepare a socio-economic profile and information on land and water tenure, open access areas and tenancy shareholding rights within the first months of the project to prepare inputs to the SLM Framework Plan and continues this intervention as the project develops to other chiogs and geogs.

Output 2.2: Chiog and geog level SLM framework and action plans under implementation from PY 1 onwards (x acres of riverine banks protected, y acres of steep erodable slopes protected, z acres of sustainable agricultural practices implemented, q acres of degraded forest regenerated, k acres of grazing lands improved and conflicts resolved, p acres of tseri converted to sustainable land use practices in PY2, PY4, and PY6 respectively. Joint management introduced for open access resources for 100 acres/geog in PY2 and Joint management and community forestry introduced at three sites in each geog by PY3. Inter-geog and inter-dzongkhag agreements on grazing right-holding regimes at high altitudes for 2- 600 acres/geog in PY3 and for double area in PY6)

Geog SLM Field Coordinator, Geog SLM Planning Team and Geog RNR staff will plan with chiogs a number of SLM interventions addressing private, common, open access and government lands for inter-sectoral interventions in agriculture, livestock and (community) forestry.

Geog SLM Field Coordinator, Geog SLM Planning Team and the Geog RNR staff provide support to local communities in setting up arrangements to solve grazing rights.

Geog SLM Field Coordinator, Geog SLM Planning Team and Geog RNR staff present the issues of inter-dzongkhag problems of grazing use rights to dzongkhag level for inter-dzongkhag negotiations where no local solutions are forthcoming.

As currently conceived, probable activities for on-the-ground investment include the following:

Sustainable Agriculture

 Integrated plant nutrient management  Integrated pest management  Promotion of multiple-cropping, winter-cropping and crop rotation  Sloping agriculture land technology

5  Agro-forestry  Promotion of horticultural crops  Irrigation water management  Agro-based rural income generating activities

Livestock and Grazing Management

 Community-based management of grazing lands  Breed improvement, including management of improved breeds  Promotion of alternate animal feed  Promotion of backyard dairy, piggery, poultry  Community dairy processing units

Forest Rehabilitation and Management

 Community and private forestry  Rehabilitation of degraded forest areas through reafforestation/ afforestation, community protection and self-regulation  Catchment forest protection and management  Forest fire management

Soil Stabilization/ Protection Works

 Construction of soil stabilization/ protection structures (e.g. gabion wall, check dam)  Bioengineering works  Rehabilitation/ rectification of existing small rural infrastructure (e.g. irrigation channels, rural water schemes, drainage systems)

Human-wildlife Conflict Management

 Technological support for crop protection  Crop and livestock insurance/ compensation schemes

Note: The above is only a probable list and may change with progress in project design, which is presently ongoing. The exact location and scale of physical activities will be determined through community consultation and participatory planning during project implementation.

Output 2.3: SLM investment activities validated through establishment of monitoring criteria for each intervention (physical SLM impact, labor, gender, tenure, poverty etc) and impact studies in PY3

Geog SLM Planning Team, geog coordinator and geog RNR staff set up monitoring criteria together with all stakeholders in the villages, prepares format for monitoring aligned to MOA monitoring system and include all relevant criteria for impact and long term institutional sustainability .

Geog SLM Planning Team, geog coordinator and geog RNR staff share experiences with dzongkhag RNR staff and the Dzongkhag SLM Committee/Dzongkhag Environment Committee to agree on approach to upscaling to other geogs within the dzongkhag.

6 Output 2.4: Lessons learnt on transaction costs and benefits of new integrated SLM planning approach to RNR staff at geog and dzongkhag level in PY4

Geog RNR staff participates in study on the time they spend on regular RNR activities and the time spent on SLM activities in order to identify synergies for future incorporation of SLM approach into regular work programme.

Dzongkhag RNR staff participates in study on the time they spend on regular RNR activities and the time spent on SLM activities in order to identify synergies for future incorporation of SLM approach into regular work programme.

Output 2.5: Lessons learnt on how to define sustainable institutional modalities for SLM under prevailing tenurial framework in PY3

Application of monitoring indicators to capture the appropriate sustainable systems of rights and responsibilities and institutional framework for optimal SLM of grazing lands, paddy lands, dry lands, forest, water streams. Indicators addressing tenure context would form part of the monitoring system.

Output 2.6: SLM Lessons learnt adopted by dzongkhag and upscaled to other geogs in the pilot dzongkhags by PY4

Dzongkhag level SLM Committee/Dzongkhag Environment Committee conducts seminars and invites all geogs from the dzongkhag to attend presentation by pilot geog on lessons learnt.

Other geog RNR staff visits pilot geog at least once a year.

Dzongkhag Administration participates actively in setting up criteria for up-scaling.

The SLM Field Coordinator and the Geog SLM Planning Team move to new geogs to plan and implement with geog RNR.

Component 3: Institutional system for SLM established sustaining the multi-sectoral approach

Output 3.1: Analytical tools for SLM developed and adopted (land use typology, land capability and suitability, hazard zonation maps, degradation severity indices formulated) and applied in production of geog Land Use Planning Framework PY 1 onwards

PMU seconds technical agencies to collect existing information and undertake fieldwork in pilot geogs in order to produce all the necessary geo-informatics at chiog and geog level that will guide the development of SLM action plans (budgeted). This exercise will be repeated as more geogs are included.

Output 3.2: Analytical tools for socio-economic profile developed and adopted to guide definition of local level institutional arrangements for SLM of various resource regimes PY 1 onwards

PMU will employ consultants to apply the SLMP’s framework to prepare a socio-economic profile at chiog level and adjust the tools into a package that will guide further work on group formation in relation to management of grazing lands, paddy lands, drylands, open access

7 resources, forest and water. The use of the analytical tools will be repeated as more geogs are included.

Output 3.3: Up-scaling (technical, institutional and geographical) defined for promotion of SLM in other geogs, dzongkhags and national level and building on lessons learnt promoted through EUSPS and PSC by PY3 onwards

Lessons learnt at pilot geog and dzongkhag consolidated through monitoring mechanism and presented to the PSC along with lessons from the EUSPS in order to impact on policies and regulatory framework.

PSC members take lessons learnt back to own ministries. A consolidated policy paper on SLM is prepared by the Policy and Planning Division of MoA for use in Bhutan.

Output 3.4: Monitoring framework established that builds on information from baseline physical and socio-economic surveys and adopt indictors of relevance to SLM approach and participatory monitoring PY1 onwards

The Geog SLM Coordinator, the Geog SLM Planning Team and the Geog RNR staff together with the GYT will facilitate a participatory definition of SLM success criteria related both to impact and to performance and integrate these into the forms of the MOA’s Manual for Monitoring & Evaluation Procedures. Data from the physical and socio-economic surveys and profiles that feed into the Framework Plan will guide the development of relevant time-bound indicators that are simple to collect.

The monitoring arrangements are detailed under the Implementation Arrangements, section 3 below. The monitoring forms the basis for generation of lessons learnt informing the up-scaling as well as change of policies at central level.

Output 3.5: Capacity built in inter-sectoral planning for SLM mainstreaming

The SLMP will carry out extensive training, both through learning-by-doing where RNR staff and other agencies will plan together with villagers under guidance of trainers and consultants and formal training programmes identified by the PMU and dzongkhags. The capacity building will be linked to performance criteria and together with the impact monitoring both will feed into revision of land management policies adopting a bottom-up inter-sectoral approach that guarantees attention to equity and livelihood concerns.

Component 4: Project Management established

Output 4.1: A national PMU and MTAC are established and Dzongkhag and Geog SLM Coordinating Committees appointed

Prior to project effectiveness the RGOB will have identified project director, project manager and members of MTAC so that these bodies are ready for work when the project start. These will continue during the whole lifetime of the project.

At dzongkhag level a SLM Coordination Committee will be appointed which may coincide with the recently appointed Dzongkhag Environmental Committee in the target dzongkhags. At geog level the GYT or a smaller unit appointed by the Gup will serve as the geog SLM Committee and

8 M&E Forum to interact with the SLM Field Coordinator, the Geog SLM Planning Team and the Geog RNR staff.

Output 4.2: Financial Management system established

Prior to project effectiveness the RGOB will have identified project accountant and endorsed the system of financial management proposed by the SMLP. The system will be in effect from the first project month.

Output 4.3: Geog SLM Field Coordinator seconded to Geog by MoA

Prior to project effectiveness the MoA will have identified 3 candidates for the position of Geog SLM field coordinator to be stationed in the three pilot geogs and later moved to other geogs within the same dzongkhags.

9 Chapter 3 CURRENT ENVIRONMENTAL SITUATION

3.1 COUNTRY ENVIRONMENTAL SITUATION

3.1.1 Geopolitical Situation

The Kingdom of Bhutan, with a total area of 38,394 km2, is a small, landlocked, mountainous country in the Eastern Himalayan region. It is bordered by the Indian states of Arunachal Pradesh to its east, Assam and West Bengal to its south, and Sikkim to its west. The northern border is shared with the Tibetan Autonomous Region of China.

Administratively, the country is divided into 20 dzongkhags (districts). The dzongkhags are further divided into several geogs. At the present, there are altogether 201 geogs in the country. Some of the dzongkhags such as Chhukha, Samdrup Jongkhar, Samtse, Sarpang, Trashigang, and Zhemgang, have sub-districts, known as dungkhags. A dzongkhag is headed by a dzongdag, a dungkhag by a dungpa, and a geog by a gup. Dzongdags and dungpas are civil service officials whereas a gup is elected by the local community every three years. At the central level, there are ten ministries and a number of non-ministerial bodies such as the National Environment Commission, Royal Civil Service Commission, Royal Audit Authority, National Statistical Bureau, and Office of Legal Affairs. The ministries are the Ministry of Agriculture, Ministry of Education, Ministry of Finance, Ministry of Foreign Affairs, Ministry of Health, Ministry of Home and Cultural Affairs, Ministry of Information and Communications, Ministry of Labour and Human Resources, Ministry of Trade and Industry, and Ministry of Works and Human Settlement.

Figure 1: Administrative Map of Bhutan

10 3.1.2 Physiography

Bhutan is almost entirely mountainous with nearly 95 per cent of the country being above 600 meters above sea level (masl). The terrain is rugged and steep, with altitudes declining from above 7,500 masl to under 200 masl within a short north-south distance of 170 km. The country can be divided into three broad physiographic zones: one, the southern belt consisting of the Himalayan foothills adjacent to a narrow belt of flatland (Duars) along the Indian border with altitude ranging from under 200 masl to about 2,000 masl; two, the inner Himalayas made up of the main river valleys and steep mountains with altitude ranging from about 2,000 masl to 4,000 masl; and, three, the great Himalayas in the north along the Tibetan border consisting of snow- capped peaks and alpine meadows above 4,000 masl.

3.1.3 Climate

The climate is dominated by southwestern monsoon, which originates from the Bay of Bengal. Generally, the monsoon starts from June and lasts until early September. Occasionally, during October and November post-monsoon rain occurs and can be sometimes severe. The period from November to March is usually dry, although brief showers may occur due to the westerly wind that brings winter rains in the Himalayan foothills. During April and May, pre-monsoon occurs with light showers. Mean annual rainfall varies from approximately 2,500 to 5,500 millimeters (mm) in the southern foothills, from 1,000 to 2,500 mm in the middle valleys and inner hills, and from 500 to 1,000 mm in the northern part of the country.

The country can be divided into three broad climatic zones: sub-tropical in the southern foothills; temperate in the middle valleys and inner hills; and alpine in the northern mountains. Generally, southern foothills are hot and humid during summer and cool in winter. The middle valleys and inner hills are warm in summer and cold in winter, with a pleasant spring and autumn.

3.1.4 Geology

The following three main geo-tectonic units have been recognized:

 Frontal Belt, making up the foothills and parts of the Lesser or Lower Himalaya;  Central Crystalline Belt, occupying portions of the Lesser and Higher Himalaya;  Tethyan Belt, covering the Higher Himalaya and isolated but large portions of the Lesser Himalaya.

Frontal Belt

Rocks in the southern foothills consist of recent deposits of sand, gravel, and boulders in the foothill terraces of south-western and south-central parts of the country at about 300 masl. The Siwalik group of rocks consist of sedimentary and metasedimentary rocks extending in an east- west direction and dipping north. They are exposed in the south-central part of the country extending from the east of Raidak River (Wang Chhu) to the west of Sarpang town and in the eastern part from the east of Manas River to the eastern boundary with the Indian state of Arunachal Pradesh. The Damuda (Gondwana) and Diuri Formations are exposed in the eastern part of the country. The Damuda rocks of Permian age consist of sandstone, shale, and coal seams, they overlie the Siwalik rocks along the Main Boundary Thrust. The Diuri Formation, at times considered part of the Damuda, comprises grey slate boulders, made up of pebbles of quartzite, phyllite, dolomite, and gneiss in a slaty matrix. The Buxa group of rocks consist

11 consists of dolomite, variegated phyllite, quartzite, and conglomerate. This group of rocks stretches from the western most part of the country to the east along the foothills. The Shumar Formation overlies the Buxa group and consists of metasedimentary phyllite, quartzite, and thin marble bands.

Central Crystalline Belt

The two main lithological groups of metamorphic thrust sheets of this belt are the Thimphu Gneissic Complex and the Paro Formation. The Thimphu Gneissic Complex is characterized by migmatites and biotite-granite-gneisses with thin beds of quartzite, quartz mica schist, calc- silicate, and marble, and is the major rock type covering the country. The Paro Formation is characterized by quartz mica schist, quartzite, calc-silicate, marble, and a thin bed of graphitic schist, and this is exposed in and around Paro. The Central Crystalline Belt is affected by intrusion of tourmaline bearing granites and pegmatites in the form of dykes, sills, laccoliths, and larger intrusions. The larger intrusive bodies are concentrated in the northern ranges.

Tethyan Belt

The metamorphic and granitised contact of the Tethyan rocks with the underlying Thimphu Gneissic Complex is gradational. The Tethyan rocks are exposed in the extreme north of the country and the central area of Black Mountains and their surroundings. This rock type basically comprises quartzite, siltstone, sandstone, phyllite, slate, limestone, and conglomerate.

3.1.5 Land Use and Cover

Forest is by far the most dominant Table 1: Land Use/ Cover Figures by Percentage land cover, with 72.5 per cent Land Use/ Cover % of Total (including 8.1 scrub forest) of the Area country under forest cover – one of Forest 72.5 the highest in the Asian region. Almost all of the forests are natural, Conifer forest 26.5 with plantation forest being just Mixed broadleaf and conifer forest 3.4 about 0.2 per cent. Agricultural land Broadleaf forest 34.5 is only 7.7 per cent and the main Plantation forest 0.2 land uses for agriculture are Scrub forest 8.1 kamzhing (dryland cultivation), Pasture 3.9 chhuzhing (wetland cultivation), tseri (slash-and-burn cultivation), Agriculture 7.7 and mixed cultivation. Area under Wetland cultivation 1.0 horticulture is negligible but slowly Dryland cultivation 2.4 expanding. Much of the northern Tseri 2.2 part of the country is snow and Mixed cultivation 2.1 glaciers, which accounts for 7.5 per cent of the country’s land cover. Orchard and Horticultural Plantation 0.2 Barren rocks cover 5 per cent and Settlement 0.1 pastures 3.9 per cent of the country. Others 15.7 Snow and glaciers 7.5 3.1.6 Natural Vegetation Rock outcrops 5.0 Waterspreads and marshy areas 0.9 The country’s extreme altitudinal variation has created a Landslip/ erosion areas 2.4 Source: Atlas of Bhutan, MoA, 1997

12 corresponding range of climatic conditions varying from hot and humid sub-tropical conditions in the southern foothills to cold and dry tundric conditions in the northern mountains. This is further modified by latitude, precipitation, slope gradient, and exposure to sunlight and wind, giving each valley and often opposite-facing slopes a unique set of climatic conditions. As a result of the wide variation in macro- and micro-climatic conditions, there are as many as 11 vegetation zones within the country’s small geographical area.

Table 2: Vegetation Zones of Bhutan

Zones Altitude (masl) Precipitation (mm per year) Sub-tropical Forest 200 – 1,000 (- 1,200) 2,500 – 5,000 Warm Broadleaf Forest 1,000 – 2,000 (- 2,300) 2,300 – 4,000 Chir Pine Forest 900 – 1,800 (- 2,000) 1,000 – 1,300 Cool Broadleaf Forest 2,000 – 2,900 2,500 – 5,000 Evergreen/ Oak Forest 1,800 – 2,000 (- 2,600) 2,000 – 3,000 Blue Pine Forest 2,100 – 3,000 (- 3,100) 700 – 1,200 Spruce Forest (2,500 -) 2,700 – 3,100 (- 3,200) 500 – 1,000 Hemlock Forest 2,800 – 3,100 (- 3,300) 1,300 – 2,000 Fir Forest 2,800 – 3,300 (- 3,800) 1,300 or more Juniper/ Rhododendron Scrub 3,700 – 4,200 ? Dry Alpine Scrub 4,000 – 4,600 ? Source: Flora of Bhutan Vols I, II and III

3.1.7 Watersheds

There are four major river basins, namely Amo Chhu, Wang Chhu, Puna Tsang Chhu, and Drangme Chhu. All these river systems flow southerly through the inner Himalayas and later Duars to join the Brahmaputra river in India. The largest river basin, the Drangme Chhu, drains nearly half of the country. Its major tributaries are Kulong Chhu, Kuri Chhu, Chamkhar Chhu and Mangde Chhu. The Drangme Chhu is known as Manas in the south and in India. Puna Tsang Chhu is formed by the confluence of Mo Chhu and Pho Chhu originating from the northwestern part of the country. In the south and in India, Puna Tshang Chhu is known as Sunkosh. The Wang Chhu flows southerly through the valleys of Haa, Paro and Thimphu in west-central Bhutan and continues through the foothills before it finally drains into India. Its main tributaries are Ha Chhu, Pa Chhu and Thim Chhu. The smallest river system, the Amo Chhu, known as Torsa in the south and in India, flows swiftly through south-western Bhutan before broadening near Phuentsholing and then flowing into India. These river systems sustain hydropower development and agriculture, which are the mainstays of the Bhutanese economy. They are also of immense ecological and economic consequence to the many downstream communities in the alluvial plains of India and Bangladesh.

3.1.8 Biodiversity

The Eastern Himalayas is recognized as one of the global biodiversity hotspots. With vast areas of forests, pristine natural landscapes and outstanding biological diversity, Bhutan can be said to be the centerpiece of this hotspot and, hence, of immense global ecological significance.

13 The country is bestowed with incredible biodiversity as a result of vast forest cover and its location at the junction of two major biogeographic realms – the tropical Indo-Malayan and the temperate Palearctic. The country’s biological diversity of more than 5,400 species of vascular plants, 770 species of birds and 170 species of mammals is particularly spectacular for a country which is 80 times smaller than India and 240 times smaller than China! The country’s wild fauna includes several globally threatened species such as the Bengal tiger Panthera tigris tigris, snow leopard Uncia uncia, clouded leopard Neofelis nebulosa, red panda Ailurus fulgens, Bhutan takin Budorcas taxicolor whitei, golden langur Trachypithecus geei, capped langur Trachypithecus pileatus, Asian elephant Elephas maximus, Himalayan musk deer Moschus chrysogaster leucogaster, Himalayan serow Capricornis sumatraensis thar, black-necked crane Grus nigrocollis, rufous-necked hornbill Aceros nipalensis, and white-bellied heron Ardea insignis. The country is presently known to have 22 globally threatened species of mammal and 15 of bird.

3.1.9 Protected Areas

In keeping with the need to maintain its rich biological diversity for sustainable development, the country has designated a sizeable portion of its territory – more than 28 per cent – as protected areas. The protected areas are Jigme Dorji National Park, Jigme Singye Wangchuck National Park, Royal Manas National Park, Thrumshingla National Park, Bumdeling Wildlife Sanctuary, Khaling Wildlife Sanctuary, Phipsoo Wildlife Sanctuary, Sakten Wildlife Sanctuary, and Torsa Strict Nature Reserve. Of these, Jigme Dorji National Park is the largest with an area of 4,349 km2 while Khaling Wildlife Sanctuary is the smallest with an area of 273 km 2. All the protected areas are linked by biological corridors to maintain contiguity of natural habitats and facilitate wildlife migration.

Table 3: Protected Areas of Bhutan

Protected Area Area Main Habitat Types Key Species (km2) Bumdeling Wildlife 1,487 Alpine meadows, high altitude Tiger, snow leopard, musk deer, blue Sanctuary coniferous forest and temperate sheep, capped langur, red panda, black- broadleaf forest necked crane, chestnut-breasted partridge, Pallas’ fish eagle. Jigme Dorji National 4,349 Alpine meadows, high altitude Snow leopard, tiger, leopard, takin musk Park coniferous forest, temperate and deer, blue sheep, Himalayan black bear, warm broadleaf forests red panda, satyr tragopan, Jigme Singye 1,400 High altitude coniferous forest, Himalayan black bear, red panda, giant Wangchuck National temperate and subtropical flying squirrel, leopard, tiger, golden cat, Park broadleaf forests rufous-necked hornbill, black-necked crane, Pallas’ fish eagle Khaling Wildlife 273 Tropical and subtropical Tiger, elephant, pygmy hog Sanctuary broadleaf forests Phipsoo Wildlife 278 Tropical and subtropical Tiger, spotted deer, elephant, golden Sanctuary broadleaf forests langur Royal Manas 1,023 Tropical and subtropical Tiger, leopard, clouded leopard, golden National Park broadleaf forests, and temperate langur, Assamese macaque, elephant, broadleaf forest. gaur, pygmy hog, hispid hare, rufous- necked hornbill, great Indian hornbill, Pallas’ fish eagle. Sakten Wildlife 650 High altitude coniferous forest Tiger, leopard, musk deer, Himalayan Sanctuary and temperate broadleaf forest. black bear, serow. Thrumshingla 768 Old growth fir forest, mixed Tiger, serow, leopard, red panda, giant National Park coniferous forest, temperate and squirrel, satyr tragopan, rufous-necked subtropical broadleaf forests. hornbill, wood snipe.

14 Torsa Strict Nature 651 Temperate coniferous forests and Snow leopard, leopard, tiger, serow, Reserve alpine meadows. rufous-throated wren babbler Source (area): Selected RNR Statistics 2003, MoA Protected areas approach in the country departs from the conventional “exclusionary” approach in that it recognizes human-nature interaction as a part of the ecosystems. Local communities have the right to live in a protected area and subsist on natural resources therein but within the limits of sustainability and in harmony with the environmental conservation objectives for which the protected area was established. Efforts to integrate nature conservation objectives and local community development needs in a mutually reinforcing manner are inherent in the protected area management programmes. Irrespective of their classification as a national park or wildlife sanctuary, the protected areas are based on a common management concept of zonation, allowing for varying degrees of human intervention or use in different zones along a continuum (core zone-multiple use zone-buffer zone).

3.2 ENVIRONMENTAL SITUATION OF PILOT PROJECT SITES

The project area is made up of three pilot geogs/ sites for implementation of the sub-projects in the initial phase (first three years of the project). These pilot sub-project sites are:

 Radhi geog in Trashigang dzongkhag, eastern Bhutan  Nangkor geog in Zhemgang dzongkhag, east-central Bhutan  Phuentsholing geog in Chhukha dzongkhag, south-western Bhutan

Figure 2: Location Map of the Pilot Project Sites

15 3.2.1 Radhi Geog, Trashigang Dzongkhag

Population

There are 17 villages with altogether 560 households in the geog. At the rate of 5.53 people per household1, this translates to about 3,097 people with a population density of about 107 people per km2 – one of the highest in the country. While lack of data on past population makes it difficult to specify the population growth trend, discussions with local communities suggest that the local population may have increased by 15 – 20 per cent in the last 30 years or so despite out- migration.

Land Use and Tenure

The geog has a total land area of 29 km2, making it the smallest in Trashigang dzongkhag. Agriculture is the most dominant land use, with wetland and dryland cultivation being the main forms of agricultural land use. Following are some figures cited from the RNR Statistics 2000:

 752 acres of wetland, 747 acres of dryland, and 237 acres of tseri/pangzhing are operational;

 95.1 per cent of farm households own wetland, 95.5 per cent dryland and 45.4 per cent tseri/ pangzhing;

 13.3 per cent of the farm households hold less than 1 acre of agricultural land, 68.2 per cent between 1 and 5 acres, 15.3 per cent between 5 and 10 acres, and 3.2 per cent more than 10 acres;

 540 acres of wetland are owned and operated by the owner, 71 acres leased in, 89 acres leased out, and 123 acres left fallow;

 369 acres of dryland are owned and operated by the owner, 30 acres leased in, 68 acres leased out, and 309 acres left fallow.

Although the geog has a significant livestock population, pasture land is limited to only about 116 acres (Land Use Planning Project, 1994). High population density and excessive use for fuelwood and timber has reduced forest cover over the years. The geog’s forest cover at about 30 per cent is one of the lowest in the country.

Topography and Drainage

The altitude ranges from about 1,220 masl at its lowest point along Gum Ri to about 2,750 masl near Shetemi. The slopes are moderate and more or less rectilinear in the upper part of the geog. The ruling slopes are also rectilinear for most of the lower sections, except for the convexities where the toe has been steepened by the downcutting of Gum Ri. The lower slopes above the convex section are undulating, with broad gentle spurs and intervening wide re-entrants. The geog is characterized by sub-tropical and warm temperate conditions, with the upper reaches being cool temperate.

1 National average household size, 2000, cited in the Statistical Yearbook of Bhutan 2003.

16 Gum Ri, which is a tributary of the Drangme Chhu, forms the northern boundary of the geog. The geog is drained and dissected by a number of side streams. These include Shong Ri, Yedi Ri, Khochi Ri and Samtharong Ri. The geog occupies the mainly north and northwest facing slopes of a section of the main valley of Gum Ri.

Geology

The geog is underlain by rocks of the Merak-Sakten Tethyan block. These overlie the high grade metamorphic rocks of the Himalayan Central Crystalline Complex. The Merak-Sakten block, like the Black Mountain block in central Bhutan, is a separate outcrop of the Tethyan rocks and not a southward extension of the Tibetan Tethyan basin, like the Lunana and Lingshi Tethyan blocks in the north and northwest of the country. The Merak-Sakten block constitutes the oldest Tehtyan rocks in the country, considered to be of Paleozoic age.

The Merak-Sakten block, earlier included in the Tirkhola Formation in some geological summaries, is a part of the revised and expanded Chekha Formation. The outcrops in Radhi area are mainly those of the basal members of the formation. The predominant rock type is greenish grey, highly lustrous, and agrillitic. It varies between phyllite, mica schist, and schistose phyllite.

The Chekha phyllite and quartzite beds are intruded by large bodies of the Chmolhari leucogranites, which are of Miocene age. The largest outcrops are to the north of Gum Ri and there are no large outcrops in Radhi area. However, beds of granite pegmatites and many small anatectic bodies of granite have intruded the Chekha rocks throughout the area, and especially on the slopes in the east of the geog. The country rock quartzites are often locally mylonised (crushed fine) in the vicinity of these intrusions. The Tethyan beds are also intruded by later quartz veins ad by dykes of greenish mafic/ ultramafic rocks, mostly amphibolite. Boulders of the latter are particularly common in the bed of Yedi Ri to the east of Radhi, and have been used as decorative elements in retaining walls and revetments along Yedi Ri section of the Phongme feeder road.

Natural Habitat and Biodiversity

The geog is one of the least forested, with only about 30 per cent of its area under forest cover. It is largely in the upper reaches of the geog that there is natural forest. The forest consists of high proportions of oak and rhododendrons, but has been heavily used for grazing, fodder and fuelwood not only by the local communities in Radhi but also by the semi-nomadic herders from adjoining Merak geog.

The nearby Sakten Wildlife Sanctuary, which is about 5-7 km to the west, is known to have vast, pristine mixed conifer forest tracts and the greatest diversity of rhododendron species in the country. Local anecdotes have it that the abominable snowman Yeti, or Migoe as known to the Bhutanese, inhabits the sanctuary2. Biological and socio-economic surveys are ongoing as a part of the conservation management planning for the sanctuary. These surveys will reveal more about the biological diversity of the sanctuary.

Cultural Property

Despite being only a small geog, Radhi has nine religious monuments. These are Dungyi Goenpa, Langten Goenpa, Namdrelchhoeling lhakhang, Shamidung lhakhang, Thoegchog

2 Existence of Yeti is yet to be scientifically proven.

17 Kuenzangchhoeling lhakhang, Trashiyangtse lhakhang, Tsegoen-dungkhor lhakhang, Zangtopelri-dungkhor chhoeling lhakhang, and Zhoenlam-dungkhor lhakhang. Excepting Thoegchog Kuenzangchhoeling lhakhang, which is privately managed, all others are maintained by the local communities.

Key Environmental Issues

Natural factors such as fragile geologic formation and asymmetric terrain have made the area highly prone to land degradation. Landslips are a recurrent phenomenon and the most serious issue in the geog. They are further exacerbated by several anthropogenic factors, the main ones being:

 The depletion of forest resources over the years by way of extraction of fuelwood, fodder, and timber, reducing their water retention capacity. The 1991 Wood Energy Sectoral Analysis by the Food and Agriculture Organization of the United Nations estimated the per capita fuelwood consumption in Radhi at 1.54 tons per annum. This is 21 per cent higher than the national average of 1.27 tons, which in itself is one of the highest in the world.  Overgrazing, which has persisted for many years largely due to high livestock population and grazing competition especially in the upstream areas between different communities, particularly the people of Radhi and the semi-nomadic graziers in the adjoining Merak geog.  Irrigation of increased areas of wetland and inadequate management of irrigation water have increased the percolation of water into the subsoils and below. This causes the weight of the soils and underlying rock, which is mainly phyllite, to increase and become slippery, and consequently reducing their strength to withstand sliding.  Disturbances from construction of infrastructure, for instance the Phongme feeder road. It appears to take very small events or factors to trigger slippage in unstable road cuttings. Poor road drainage is also a major cause of formation of downslope gullies.

3.2.2 Nangkor Geog, Zhemgang Dzongkhag

Population

The geog has 12 villages with a total of 278 households, which based on national average household size translates to a population of 1,537 and a population density of 3.1 people per km2 – one of the lowest in the country. The main villages are Dakpai, Tali, Keykhar, Buli, Goling, Duenmang, Norbugang, Nyakhar and Tshaidang.

Topography and Drainage

Nangkor geog lies in the north-central part of Zhemgang dzongkhag. Much of the geog is part of what is traditionally called ‘Middle Kheng’. The northern part is virtually uninhabited. The geog is characterized by rugged terrain and steep slopes with pockets of gently sloping lands, as in Buli village. The elevation varies from 400 masl in the south to as high as 4,400 masl in the north with settlements occurring at up to 1,800 masl. The vast altitudinal variation gives rise to diverse agro ecological conditions ranging from sub-tropical to sub-alpine.

The main river in the geog is Burgong Chhu. It joins the Mangde Chhu, which flows along the southwestern border of the geog. To the very south of the geog, Chamkhar Chhu, another major river of the east-central Bhutan, joins Mangde Chhu.

18 Land Use and Tenure

Nangkor geog has an area of 494 km2 and is the largest in Zhemgang dzongkhag. Tseri is the most dominant land use for agriculture with about 1,153 acres of land operational under such cultivation. Given that tseri is the most dominant form of agricultural land use, average landholding per household is relatively large. Following are some figures cited from the RNR Statistics 2000:

 360 acres of wetland, 421 acres of dryland, and 1,153 acres of tseri are operational;

 74.1 per cent of the farm households own wetland, 92.1 per cent dryland and 82.9 per cent tseri;

 4.2 per cent of the farm households hold less than 1 acre of agricultural land, 36.6 per cent between 1 and 5 acres, 34.7 per cent between 5 and 10 acres, and 24.5 per cent more than 10 acres;

 284 acres of wetland are owned and operated by the owner, 8 acres leased in, 9 acres leased out, and 67 acres left fallow;

 212 acres of dryland are owned and operated by the owner, 6 acres leased in, 5 acres leased out, and 203 acres left fallow.

The geog has very good forest cover, with nearly 85 per cent of the total area being forested (LUPP, 1994). Pasture is only 0.7 per cent of the total area. People from the adjoining Bumthang dzongkhag possess customary grazing rights over much of the pasture in the geog.

Geology

The geologic formations in the villages of Kheykar and Tali are found to be on Thirkula formation comprising mostly of bedded quartzites, phyllitic quartzites and limestones. Buli village falls within the Thimphu formation with gneiss, mica schists and quartzites as parent rock materials.

Natural Habitat and Biodiversity

The geog does not fall inside any protected area. However, there are three protected areas nearby: Jigme Singye Wangchuck National Park to the west, Royal Manas National Park to the southwest, and Thrumshingla National Park to the northeast. The geog has very good sub-tropical broadleaf forests in the southern part and temperate broadleaf forest in the northern part. These forests are good habitats for tiger, leopard, Himalayan black bear, Asiatic wild dog, musk deer, common otter, golden langur and many bird species such as the chestnut-breasted partridge, great hornbill and rufous-necked hornbill. The Lelegang-Tshaidang area is known to be a prime bird habitat.

Cultural Property

Physical cultural resources in Nangkor geog include 15 religious monuments. These are Buli Dechenchhoeling lhakhang, Buli Bar lhakhang, Buli Khelam Goenpa, Duenmang lhakhang,

19 Goling lhakhang, Keykhar lhakhang, Mebar-tokto lhakhang, Nyakhar lhakhang, Phuentshok Peling lhakhang, Tali lhakhang, Tali Thigling Goendoe, Tsheldang lhakhang, Tsheldang Goenpa Ugenchhoeling, Ugenchhoeling-dungkhor lhakhang, and Zhoepling lhakhang. Tali Thigling Goendoe is run by the government and Mebar-tokto lhakhang, Tsheldang Goenpa Ugenchhoeling, and Ugenchhoeling-dungkhor lhakhang are run by private bodies. The rest are community-managed.

Key Environmental Issues

The key environmental issues in the geog are outlined below:

 Tseri (slash and burn cultivation) is the most dominant agricultural practice. Reduced fallow period, partly induced by legal factor, has made tseri unsustainable and is, consequently, contributing to land degradation. Also, there is a desire among the local community to transit from subsistence agriculture to market-oriented farming practices now that market accessibility has been greatly improved with the construction of the Dakpai-Buli road. Local people are also finding tseri increasingly unviable due to crop depredation by wild animals and growing shortage of farm labor, especially to guard against crop depredation. The transit from tseri to more intensive farming will be environmentally challenging as it will necessitate increased farm inputs and services, including physical infrastructure.

 Grazing is another major issue. Although the local livestock population is not very significant, grazing is intensive in some areas due to double grazing, involving resident cattle during summer and migratory herds from Bumthang in winter. Patches of degraded forests have been created in areas where cattle herders camp during the grazing season.

 Human-wildlife conflict, more significantly in the form of crop depredation by wild animals (wild boar, deer, monkey, etc) and to a lesser extent livestock depredation by predators (leopard, wild dog, tiger, etc), is also a key issue. With much of the geog being forested and a good habitat for wildlife, incidents of crop and livestock depredation by wildlife are much more common than in many other parts of the country.

 With improved accessibility as a result of the construction of Dakpai-Buli feeder road, the geog’s rich forest resources are now more exposed for exploitation. There is a plan to open a forest management unit (FMU) in the area for commercial logging. While logging in the country is by policy required to be within the limits of annual allowable cut based on sustained yield principle, it has its repercussions in terms of disturbance to ecologically sensitive areas, opening up the forest further with construction of logging roads, and deterioration of the existing feeder road and making it prone to landslides due to movement of heavy logging trucks and machinery. If the FMU is to become a reality, a very comprehensive environmental assessment will be critical prior to its establishment.

3.2.3 Phuentsholing Geog, Chhukha Dzongkhag

Population

Phuentsholing geog has 19 villages with altogether 547 households. The total population in the villages works out to about 3,025. In addition, Phuentsholing Urban Area – which is the second largest in the country – has about 21,000 people. As a result, the population density of the geog shoots up to nearly 172 people per km2.

20 Land Use and Tenure

The geog has an area of 139.8 km2. More than 71 per cent is forest. Arable land makes up about 18.5 per cent and horticulture about 2.4 per cent. Pasture is only 1.31 per cent. Agricultural land holdings are large. Following are some figures cited from the RNR Statistics 2000:

 208 acres of wetland, 1,160 acres of dryland, and 1,651 acres of tseri/pangzhing are operational;

 32.5 per cent of the farm households own wetland, 89.3 per cent dryland and 75.6 per cent tseri/pangzhing;

 6.5 per cent of the farm households hold less than 1 acre of agricultural land, 34 per cent between 1 and 5 acres, 33 per cent between 5 and 10 acres, and 26.5 per cent more than 10 acres;

 202 acres of wetland are owned and operated by the owner, 1 acres leased in, 4 acres leased out, and 2 acres left fallow;

 1,099 acres of dryland are owned and operated by the owner, 20 acres leased in, 36 acres leased out, and 25 acres left fallow.

Topography and Drainage

The highest point is 2,431 masl while the lowest is about 200 masl. However, most of the settlements are located in the lower sub-tropical zone. The Department of Energy’s meteorology station at Phuentsholing has recorded an annual average rainfall of 4,900 mm between 1996 and 2003. Amo Chhu – also known as Torsa – flows along the southwestern boundary and Pa Chhu, a tributary of the Amo Chhu, forms much of the northwestern boundary of the geog. Dute Khola, although only a short river, is a critical watershed as its downstream flows right through Phuentsholing city.

Geology

The geologic formation is that of Frontal Belt. Rocks in the southern foothills consist of recent deposits of sand, gravel, and boulders. The Buxa group of rocks consist consists of dolomite, variegated phyllite, quartzite, and conglomerate. The Shumar Formation overlies the Buxa group and consists of metasedimentary phyllite, quartzite, and thin marble bands.

Natural Habitat and Biodiversity

The geog does not fall inside any protected area nor is near any protected area. Much of the geog’s forest is sub-tropical broadleaf. These forests are likely to harbor tiger and leopard. Torsa river is a good habitat for birds such as waders, wagtails, pipits, egrets, and small pratincole.

Cultural Property

Physical cultural resources in the geog include Ngaksungmai nyekhang, Zangthopelri lhakhang, Phuentsholing (Kharbandi) goenpa, Pachhu lhakhang, and Dungkhor lhakhang. Pachhu lhakhang

21 and Zangthopelri lhakhang are maintained by resident communities. Others are managed by private bodies. Key Environmental Issues

Key environmental issues in Phuentsholing geog are as outlined below:

 Fuelwood, fodder, and other forest products continue to be collected from the catchment forests without replenishment or sustainable practices. Forests near the border are excessively exploited because they are also illegally used for grazing and collection of fuelwood, fodder and small timber by the burgeoning population on the Indian side. The porous international border makes it difficult for the local forest authorities to enforce controls and restrictions. While data on forest degradation is lacking, local government officials and villagers suggested that forest may have degraded by 20 to 25 per cent over the last 15-20 years.

 Free grazing by cattle is common and is a major impediment to forest regeneration. Double grazing also occurs with migratory herds from Haa and Paro coming to the geog in winter because of customary grazing rights owned by the people from these two dzongkhags.

 Urban and industrial expansion and attendant development of infrastructure such as roads are major environmental disturbances. There is also increased pollution of air, water and land due to growth in industrial and urban activities. Due to rampant population growth and high housing rental in Phuentsholing Urban Area, settlements of squatters have spawned in peripheral areas, causing pollution and degradation of adjacent forests. According to Phuentsholing Urban Population Survey, September 2003, there are some 125 families, making up altogether 649 people, living in various slums.

 In order to meet growing construction demands in Phuentsholing and adjoining geogs, particularly Dala geog where the country’s largest power project – Tala Hydroelectric Project – is under construction, there is increased quarrying along roads and riverbeds for stone and sand. This is contributing to destabilization of slopes and riverbeds.

22 Chapter 4 EXISTING NATIONAL POLICY AND LEGAL FRAMEWORK FOR ENVIRONMENTAL MANAGEMENT

4.1 GENERAL OVERVIEW

Much of the environmental management policy and legislation development work has taken place over the last ten years. The following are the key policies, legislations and regulations that currently make up the country’s environmental management policy and legal framework:

 National Forest Policy, 1974  Forest and Nature Conservation Act, 1995  Forest and Nature Conservation Rules, 2000  Environmental Assessment Act, 2000  Regulation for the Environmental Clearance of Projects, 2002  Regulation for Strategic Environmental Assessment, 2002  Pesticides Act of Bhutan, 2000  Mines and Minerals Management Act, 1995  Biodiversity Act of Bhutan, 2003

Also of importance are the DYT and GYT Chathrims 2002 given that the project is designed to be community-based. These Chathrims are the most important policy instruments that mandate locally elected community bodies, namely the DYT and GYT, to exercise authority and functions for developmental programmes and activities, including those pertaining to environmental management, at the local level.

4.2 BRIEF DESCRIPTIONS OF EXISTING POLICIES, LAWS AND REGULATIONS

4.2.1 National Forest Policy, 1974

The National Forest Policy, 1974, places priority on conservation of forests and associated resources for their ecological values. Economic benefit from forest resources is considered secondary and is to be derived within sustainable limits. It hinges on the following four guiding principles:

 Protection of the land, its forest, soil, water resources and biodiversity against degradation, such as loss of soil fertility, soil erosion, landslides, floods and other ecological devastation and the improvement of all degraded forest land areas, through proper management systems and practices;  Contribution to the production of food, water, energy and other commodities by effectively coordinating the interaction between forestry and farming systems;  Meeting the long-term needs of Bhutanese people for wood and other forest products by placing all production forest resources under sustainable management;

23  Contribution to the growth of national and local economies, including exploitation of export opportunities, through fully developed forest based industries, and to contribute to balanced human resources development through training and creation of employment opportunities.

4.2.2 Forest and Nature Conservation Act, 1995

Bhutan Forest Act, 1969, was the first modern legislation to be enacted in the country. Its enactment brought all forest resources under government custody with the intent to regulate forest utilization and control excessive forest exploitation. This law was repealed in 1995 with the enactment of the Forest and Nature Conservation Act, 1995 (FNCA) in keeping with evolving conservation needs and to allow for community stewardship of forest resources. The objective of the FNCA is to “provide for the protection and sustainable use of forests, wildlife and related natural resources of Bhutan for the benefit of present and future generations”. It covers forest management, prohibitions and concessions in government reserved forests, forestry leases, social and community forestry, transport and trade of forestry produce, protected areas, wildlife conservation, soil and water conservation, forest fire prevention, and enforcement and penalties.

4.2.3 Forest and Nature Conservation Rules, 2000

To support the implementation of the FNCA and in accordance with the powers and duties conferred under the FNCA, the MoA promulgated Forest and Nature Conservation Rules 2000 (FNCR). The FNCR provides regulations for:

 preparation, review, approval, implementation, monitoring and evaluation of forest management plans;  reservation of government reserved forests, allotment of land and land rights in government reserved forests, regulation of activities in lands allotted for private use, collection of forest produce from government reserved forests, compensation for acquired lands, prohibitions, restrictions and concessions in government reserved forests, and forestry lease;  creation of private and community forests, including procedures for registration of private and community forests and effects consequent upon registration, management and use of community forest resources, and responsibilities and powers of the community forest management group and concerned government agencies;  transport and trade of forest produce, including extraction and marketing procedures and inspection of forest produce in transit or in trade;  declaration of protected areas, administration of PAs , and prohibitions in PAs;  protection of wildlife and use of certain wild species;  prevention of forest fires, land clearance, and activities potentially impacting soil, water and wildlife resources; and  enforcement and penalties for offences related to all of the above.

4.2.4 Environmental Assessment Act, 2000

The Environmental Assessment Act 2000 (EAA) establishes procedures for the assessment of potential effects of strategic plans, policies, programs, and projects on the environment, and for the determination of policies and measures to reduce potential adverse effects and to promote environmental benefits. The Act requires the RGoB to ensure that environmental concerns are

24 fully taken into account when formulating, renewing, modifying and implementing any policy, plan or program as per regulations that may be adopted within the appropriate provision of the Act. It makes environmental clearance (EC)3 mandatory for any project/ activity that may have adverse impact(s) on the environment.

4.2.5 Regulation for the Environmental Clearance of Projects, 2002

The Regulation for the Environmental Clearance of Projects 2002 (RECOP) defines responsibilities and procedures for the implementation of the EAA concerning the issuance and enforcement of EC for individual projects and to:

 provide meaningful opportunities for public review of potential environmental impacts of projects;  ensure that all projects are implemented in line with the sustainable development policy of the RGoB;  ensure that all foreseeable impacts on the environment, including cumulative effects are fully considered prior to any irrevocable commitments of resources or funds;  ensure that all feasible alternatives are fully considered; ensure that all feasible means to avoid or mitigate damage to the environment are implemented;  encourage the use of renewable resources, clean technologies and methods; ensure that concerned people benefit from projects in terms of social facilities;  help strengthen local institutions in environmental decision making; and  help create a uniform, comprehensive data base on the environmental and cultural conditions and assets in the country.

To support the implementation of the EAA and RECOP, the following sectoral guidelines and Environmental Codes of Practice (ECOP) are presently in place:

 EC Application Guidelines for Highways and Roads, updated 2004, NECS  EC Application Guidelines for Forestry, updated 2004, NECS  EC Application Guidelines for Hydropower, updated 2004, NECS  EC Application Guidelines for Industrial Projects, updated 2004, NECS  EC Application Guidelines for Mines, updated 2004, NECS  EC Application Guidelines for Power Transmission and Distribution Lines, updated 2004, NECS  EC Application Guidelines for Urban Development, new 2004, NECS  EC Application Guidelines for Tourism Projects, new 2004, NECS  ECOP for Storm Water Drainage Systems, new 2004, NECS  ECOP for Installation of Underground and Overhead Utilities, new 2004, NECS

3 Article 6.11 of the EAA defines Environmental Clearance as the decision, issued in writing by the NECS or the relevant Competent Authority, to let a project proceed, which includes terms (and conditions) to ensure that the project is managed in an environmentally sound and sustainable way.

25  ECOP for Tourism Activities, new 2004, NECS  ECOP for Roads, Department of Roads, MWHS  Environmental Discharge Standard, new 2004, NECS

4.2.6 Regulation for Strategic Environmental Assessment, 2002

The purpose of this Regulation is to:

 Ensure that environmental concerns are fully taken into account by all government agencies when formulating, renewing, modifying or implementing any policy, plan or programme, including FYPs;  Ensure that the cumulative and large scale environmental effects are taken into consideration while formulating, renewing, modifying or implementing any policy, plan or programme;  Complement project-specific environmental reviews as per RECOP and to encourage early identification of environmental objectives and impacts of all government proposals at appropriate planning levels;  Promote the design of environmentally sustainable proposals that encourage the use of renewable resources and clean technologies and practices; and  Promote and encourage the development of comprehensive natural resource and land use plans at the local, dzongkhag and national levels.

It outlines the duties of government agencies formulating, renewing, modifying, or implementing any policy, plan, or programme, the principles of strategic environmental assessment, and essential contents of the environmental statement.

4.2.7 Pesticides Act of Bhutan, 2000

The Pesticides Act of Bhutan (PAB), 2000, has been enacted with the objective to:

 ensure integrated pest management (IPM) is pursued, limiting the use of pesticides as the last resort;  ensure that only appropriate types and quality of pesticides are introduced in the country;  ensure that pesticides are effective when used as recommended;  minimize deleterious effects on human beings and the environment consequent to the application of pesticides; and  enable privatization of sale of pesticides as and when required.

4.2.8 Mines and Minerals Management Act, 1995

The Act recognizes the preservation, protection and setting of environmental standards and conservation of natural resources consistent with the provision of the Act and other environmental legislation as a critical feature of mining practices. It requires that restoration of areas that are mined is carried out in a proper manner with the objective of creating a suitable and acceptable environment as approved by the National Environment Commission. Prior to granting a mining lease, a final mine feasibility study based on an assessment of technical, financial,

26 environmental and social parameters, is required. Among other things, the feasibility study needs to contain a Mine Plan, Environment Management Plan and Restoration Plan.

4.2.9 Biodiversity Act of Bhutan, 2003

The Act asserts the sovereignty of the country over its genetic resources, the need to promote conservation and sustainable use of biodiversity resources as well as equitable sharing of benefits arising from sustainable use, and the need to protect local people’s knowledge and interests related to biodiversity. It lays down the conditions for the grant of access, benefit sharing, and protection, and describes various rights, offences and penalties.

4.2.10 DYT and GYT Chathrims, 2002

In the context of decentralized environmental management, the DYT and GYT Chathrims, 2002, have laid down a number of provisions. These Chathrims were enacted with the main aim to support the decentralization policy and empower DYTs and GYTs with the authority and responsibility to decide, plan and implement development programmes and activities, including those concerning environmental management, at the local community level. Powers and functions vested in the DYTs and GYTs in relation to environmental management are specified below.

Environment-related provisions in DYT Chathrim, 2002

Article 8 of the DYT Chathrim 2002 gives the DYT the power and function to:

 promote awareness and dissemination of national objectives (section 3);  adopt procedures and rules to implement national laws, wherever relevant (section 10); and  make recommendations on activities with major environmental impacts such as construction of roads, extraction and conservation of forests, mining and quarrying (section 13).

Article 9 of the DYT Chathrim 2002 gives the DYT the power and function to adopt and enforce regulations with respect to:

 designation and protection of monuments and sites of cultural and historical interests (section 1);  designation and protection of areas of special scenic beauty or biodiversity as dzongkhag parks and sanctuaries (section 2);  control of noise pollution (section 8);  establishment of quarries and mines in accordance with Mines and Mineral Management Act 1995; and  protection of public health as per prevailing national guidelines or acts (section 14).

Article 10 of the DYT Chathrim, 2002, gives the DYT broad administrative power and function to give direction and approval on:

 construction of farm and feeder roads (section 5);  forest management plan including extraction, conservation and forest road construction in accordance with the FNCA (section 8);

27  protection of forests, tsamdo and all types of government and community lands from illegal house and similar construction and other encroachments (section 19);  control of construction of structures, whether on national, communal or private lands, within 50 feet of highways, including enforcement of measures such as cessation of construction and demolition of the structures (section 20);  choice of trekking routes and camps for tourists (section 22); and  mobilization of voluntary actions in times of natural catastrophes and emergencies (section 26).

Article 13 of the DYT Chathrim 2002 gives the Dzongkhag Administration the powers and functions to:

 construct farm and feeder roads, in conjunction with the NEC (section 5);  determine the choice of design, construction methods and building materials for forms, which do not have to follow standard designs in conformity with acceptable technical and structural norms (section 12); and  approve allocation of timber permits as per the rules and regulations issued by the MoA from time to time (section 16).

Environment-related provisions in GYT Chathrim, 2002

Article 8 of the GYT Chathrim 2002 gives the GYT the power and function to adopt and enforce regulations at the geog level with respect to:

 safe disposal of waste (section 1);  control and prevention of pollution of air, soil and water (section 2);  sanitation standards (section 3);  control of communicable livestock diseases within the geog in accordance with the Livestock Act 2001 (section 4);  allocation of safe and clean drinking water from water supply schemes (section 5);  allocation of irrigation water, in accordance with the provision of the Land Act 1979 (section 6); and  protection and harvesting of edible forest products in the local area in accordance with the Forest and Nature Conservation Act 1995 (section 8).

Article 9 of the GYT Chathrim, 2002, gives the GYT broad administrative power and function at the geog level with respect to:

 administration, monitoring and review of all activities that are part of the geog plan, including the maintenance of community properties such as lhakhangs (temples), goendeys (monastic institutions) and their nangtens (religious treasures), chhoerten (stupa), mani dangrem (prayer structures), water supply schemes, irrigation channels, footpaths, mule tracks, farm and feeder roads, suspension and cantilever bridges, micro-hydels, basic health units and outreach clinics, lower secondary school and community schools, and extension centers of the RNR sector (section 2);

28  conservation and protection of water resources, lakes, springs, streams, and rivers (section 7);  custody and care of communal lands, community forests, including sokshing and nyekhor tsamdo, medicinal herbs and accordingly prevention of illegal house construction and all other types of encroachments on land and forests (section 8);  prevention of construction of structures, whether on national, communal or private lands, within 50 feet of highways falling in local area (section 9); and  protection and preservation of ney (sacred natural site), nyekhang (dwelling place of local deity) or yulha and zhiday, which are not part of custody of a monastic body or central agencies (section 10).

4.3 COMPARATIVE ASSESSMENT IN RELATION TO WB SAFEGUARD POLICIES

The Bank’s safeguard policies require that potentially adverse environmental impacts and selected social impacts of Bank Group investment projects are identified, avoided or minimized where feasible, and mitigated or monitored.

The safeguard policies provide a mechanism for integrating environmental and social concerns into development decision making. Most safeguard policies provide that: (a) potentially adverse environmental impacts as well as specific social impacts should be identified and assessed early in the project cycle; (b) unavoidable adverse impacts should be minimized or mitigated to the extent feasible; and (c) timely information should be provided to the stakeholders, who should have the opportunity to comment on both the nature and significance of impacts and the proposed mitigation measures.

4.3.1 Environmental Assessment (OP 4.01)

Applicability

Overall, the SLMP can be classified as a Category B project in accordance with WB Classification for Environmental Assessment (EA). It is likely to have moderate to low environmental impacts. Potential adverse environmental impacts on human populations or environmentally important areas – including wetlands, forests, grasslands, and other natural habitats – are limited. These impacts will be site-specific, with none of them being irreversible. Mitigation measures can be readily designed and implemented.

Existing Legal Framework

The Environmental Assessment Act, 2000 (EAA) requires the RGoB to ensure that environmental concerns are fully taken into account when formulating, renewing, modifying and implementing any policy, plan or program as per regulations that may be adopted within the appropriate provision of the Act. It makes environmental clearance mandatory for any project/ activity that may have adverse impact(s) on the environment.

The Regulation for the Environmental Clearance of Projects, 2002 (RECOP) defines responsibilities and procedures for the implementation of the EAA concerning the issuance and enforcement of EC for individual projects. All ECs must contain terms and conditions adequate to fully protect the environment and satisfy the requirements set forth in the Regulation. At the minimum, the EC shall specify binding mitigation and compliance measures, and appropriate monitoring, recording and reporting requirements. Non-compliance with environmental terms

29 prescribed in the issuance of EC makes the offender liable to penalties that may include compensation for environmental damage, fines, sanctions, and suspension or revocation of EC in part or full.

4.3.2 Natural Habitats (OP 4.04)

Applicability

The Bank does not support projects involving significant conversion of natural habitats unless there are no feasible alternatives for the project and its siting, and comprehensive analysis demonstrates that overall benefits from the project substantially outweigh the environmental costs. If the EA indicates that a project would significantly convert or degrade natural habitats, the project includes mitigation measures acceptable to the Bank. Such mitigation measures include, as appropriate, minimizing habitat loss (e.g. strategic habitat retention and post- development restoration) and establishing and maintaining an ecologically similar protected area. The Bank accepts other forms of mitigation measures only when they are technically justified. While there are no numerical thresholds for determining “significant” conversion or degradation, a useful rule of thumb is that project-related conversion or degradation is likely to be significant if it involves either (a) in absolute terms, more than about 10,000 hectares (ha) of natural habitats or (b) in relative terms, more than one percent of the remaining area of any ecosystem type within the same country.

While the pilot project sites do not fall inside any protected area, when the project activities are scaled up to other sites there is possibility that they may fall inside a protected area. However, the project will not entail any conversion or degradation of natural habitats given that the individual activities will be at chiog- or household-scale and in essence be about improving natural resource management directly or indirectly.

Existing Legal Framework

The Forest and Nature Conservation Act, 1995 (FNCA) is the main legal framework for conservation of natural habitats. It covers forest management, prohibitions and concessions in government reserved forests, forestry leases, social and community forestry, transport and trade of forestry produce, protected areas, wildlife conservation, soil and water conservation, forest fire prevention, and enforcement and penalties.

To support the implementation of FNCA, the MoA has promulgated Forest and Nature Conservation Rules, 2000 (FNCR). In relation to the protection of natural habitats, the FNCR establishes regulations for: reservation of government reserved forests; prohibitions, restrictions and concessions in government reserved forests; declaration and administration of protected areas; prohibitions in protected areas; protection of wildlife; and prevention of forest fires, land clearance and other activities potentially impacting soil, water and wildlife resources.

Furthermore, according to EAA and RECOP, any activity that involves land clearance requires authorization from the Department of Forestry (DoF). Also the RECOP establishes that any project/activity that requires EC and is within a protected area must first secure official clearance from the DoF.

30 4.3.3 Forestry (OP 4.36)

Applicability

WB’s involvement in the forestry sector aims to reduce deforestation, enhance the environmental contribution of forested areas, promote afforestation, reduce poverty, and encourage economic development. The Bank does not finance projects that contravene applicable international environmental agreements. The safeguard policy also stipulates that no significant adverse impact should take place on forested areas as a result of project activities financed by the Bank.

The project envisages community and private forestry, and afforestation/ reforestation of barren/degraded areas and catchment areas to curb land degradation. Its objective is in harmony with the WB’s forestry sector objectives of reducing deforestation, promoting afforestation and alleviating poverty.

Existing Legal Framework

Forestry activities are governed by the FNCA and supporting FNCR. Chapter IV of the FNCA and FNCR establishes regulations and procedures for establishment and management of community and private forests. In addition, there exists the Community Forestry Manual for Bhutan (presently in working draft form). The manual is in four parts: Part I deals with initiating community forestry; Part II with community forest management planning; Part III with silvicultural options for community forestry; and Part IV with institutional strengthening of community forest management group.

4.3.4 Pest Management (OP 4.09)

Applicability

WB supports a strategy that promotes the use of biological or environmental control methods and reduces reliance on synthetic chemical pesticides. In WB-financed/ supported projects, the borrower addresses pest management issues in the context of the project's environmental assessment. In WB-financed/ supported agriculture operations, pest populations are normally controlled through IPM approaches, such as biological control, cultural practices, and the development and use of crop varieties that are resistant or tolerant to the pest.

Any procurement of pesticides that are classified as Class Ia, Ib and II in the WHO Guidelines can not be included in a WB-financed/ supported project, if the country lacks restrictions on their distribution and use or they are likely to be used by, or accessible to, lay personnel, farmers or others without training, equipment and facilities to handle, store and apply these products properly.

The project will involve, on a limited scale, procurement and use of pesticides to enhance crop production. However, the procurement and distribution of pesticides in Bhutan is well controlled through a centralized system. The distribution list of pesticides used in Bhutan and the trend of their distribution are provided in Annex 11. Application of hazardous chemicals is not encouraged and prescribed only as a last resort when pest attacks reach economic threshold. Furthermore, IPM will be inherent in the project as a major activity to improve crop production in an environmentally sustainable manner.

31 Existing Legal Framework

Procurement and distribution of pesticides is legally governed by the Pesticides Act of Bhutan, 2000 (PAB). The PAB has been enacted with the purpose of, inter alia, ensuring that IPM is pursued, limiting the use of pesticides as the last resort, and minimizing deleterious effects on human beings and the environment consequent to the application of pesticides.

Rules to support the implementation of the PAB are yet to be formulated but IPM guidelines have been developed and are under implementation as a part of the National Plant Protection Center’s regular programme. The IPM guidelines exist in the form of a series of extension leaflets on various pest organisms, their life cycles and associated damage symptoms, biological and cultural control methods, and, where necessary, instructions are given on safe use of chemicals. Examples of such leaflets are provided in Annex 12.

4.3.5 Cultural Property (OP 4.11)

Applicability

Cultural resources are important as sources of valuable historical and scientific information, as assets for economic and social development, and as integral parts of a people's cultural identity and practices. The loss of such resources is irreversible, but fortunately, it is often avoidable. WB seeks to avoid, or mitigate, adverse impacts on cultural resources from development projects that it finances. Safeguard policy concerning cultural property is applicable to all the project activities involving construction work and can be covered under the EA requirement.

The SLMP will have no activities that will impact cultural properties. Rather, it may have activities to assist local communities to protect cultural properties which are at risk from land degradation.

Existing Legal Framework

At the present, legal provisions for protection of cultural properties are covered by Thrimshung Chenmo, the mother law, and largely pertain to desecration and theft of sacred monuments and articles. Drafting of a comprehensive national legislation specifically for protection of cultural properties is ongoing.

At the decentralized level, the DYT and GYT Chathrims, 2002, provide mandate for the protection of cultural properties at the local level, specifically:

 Article 9 of the DYT Chathrim, 2002, gives the DYT the mandate to adopt and enforce regulations, inter alia, for designation and protection of monuments and sites of cultural and historical interests; and  Article 9 of the GYT Chathrim, 2002, gives the GYT the mandate at the geog level pertaining to, inter alia, administration, monitoring and review of all activities that are part of the geog’s plans, including the maintenance of community properties such as lhakhangs, goendeys and their nangtens, chhoertens, mani dangrems… and protection and preservation of ney, nyekhang or yulha and zhiday, which are not part of custody of a monastic body or central agencies.

32 In addition, the RECOP requires that EC applications are supported by clearance from the MHCA if the project involves activities within 50 meters distance of a sacred landscape or site.

4.3.6 Involuntary Resettlement (OP 4.12)

Applicability

The policy covers not only physical relocation, but also any loss of land or other assets resulting in: (i) relocation or loss of shelter; (ii) loss of assets or access to assets; and (iii) loss of income sources or means of livelihood, whether or not the affected people must move to another location. It also applies to the involuntary restriction of access to legally designated parks and protected areas resulting in adverse impacts on the livelihoods of the displaced persons.

The project will not have any activity that entails physical relocation of local communities or acquisition of private or community land. Potential adverse impacts, if any, may arise from changes in land use patterns, e.g. closure of degraded tsamdo from grazing or restriction on collection of forest products from forests which are degraded or located in ecologically sensitive areas. The exact nature and magnitude of such adverse impacts will be known only during project implementation, when project activities are planned in detail and their exact location and scale clearly identified.

Restriction of access to tsamdos or forests will not be imposed on the local people but will emerge from a consultative and participatory process outlined in the separate “Social Assessment” document. It is also to be noted that some of the activities being formulated for the project, such as community forestry and promotion of backyard farming would help compensate project affected people for the impacts due to restriction of access to tsamdo and forests.

Exchange/ swapping or conversion of certain agricultural land types is also a strong possibility under the project. For example, in Radhi geog, increased area under chhuzhing is said to be causing sinkage, undulation, and slipping of land. To address this problem, conversion of chhuzhing into another agricultural land use category (depending on land capability) is considered likely under the project. In Nangkor, tseri has become economically and environmentally unviable. Many local people are eager to shift to farming practices which will give them improved economic returns. The project envisages exchange/ swapping of tseri, which are usually located far-off in forest niches, with forest land that are near agricultural settlements and suitable for agriculture. Exchange/ swapping or conversion of land is at the discretion of individual land owners by law and by project design.

Existing RGoB Policies, Regulations and Guidelines

The Land Act of Bhutan, 1979, deals with matters related to land tenure, allotment of government land, and land conversion. While other agricultural land types can be converted into chhuzhing, the Act does not permit conversion of chhuzhing into other land types unless certified by the MoA and the concerned Dzongkhag that the land in question is no longer suitable for paddy cultivation or conversion to other land use is deemed necessary and there is a government order to that effect. The Land Act is currently under review by a task force set up by the MoA.

The MoA has developed Guidelines for Conversion of Chhuzhing to other Land Use Categories to streamline the process for such land conversion. The Guidelines specifies the role and responsibilities of the Dzongkhag Administrations and the MoA in processing the

33 applications for conversion of chhuzhing and defines the features that need to be looked into during technical investigation.

Where land allotment or conversion involves forest land, the Forest and Nature Conservation Act, 1995, comes into effect. As per this Act, clearing or breaking up of any forest land for cultivation or any other purpose is prohibited except in accordance with the Forest and Nature Conservation Rules, 2000, issued by the MoA. Chapter III Section 17 of the Forest and Nature Conservation Rules, 2000, defines the procedural requirements, technical regulations and criteria for allotment of forest land to a person for other purpose. However, it is silent on land exchange/ swapping involving forest land. To address this gap, the MoA has developed Procedure for Exchange (Swapping) of Marginal Farm Lands with Forest Land. The Procedure outlines legal and geophysical criteria and procedural steps for application, field verification, decision- making, demarcation and registration of land, handing/taking over and procedural monitoring. The implementation of the Procedure is, however, currently on hold subject to the outcome of the review of the Land Act.

4.3.7 Indigenous Peoples (OP 4.10)

Applicability

This policy is triggered when there are indigenous peoples in the project area, and potential adverse impacts on indigenous peoples are anticipated or indigenous peoples are among the intended beneficiaries.

In the Bhutanese context, the concept of indigenous peoples is ambiguous. People in every valley/region can be considered indigenous people, with almost every valley/region having distinct dialects. What is more relevant is the term “minor ethnic groups” although such groups in Bhutan can be socio-culturally closely associated with one of the primary ethnic groups, Ngalong, Sharchop or Lhotshampa. While the pilot sites do not have communities socially and culturally distinct from the dominant local society, in the up-scaling phase the project may include areas where there are minor ethnic groups. But again in the Bhutanese context such minor ethnic groups usually form the dominant local community.

Therefore, there are no groups which can be said to be vulnerable or disadvantaged as a consequence of their ethnicity. Instead, vulnerable groups can be determined in terms of households with low cash income, small or no landholding, high ratio of dependents (young children, old parents, disabled members), recurrent food deficit, and woman as family head due to death/ illness of husband or divorce. Such households will need special attention to ensure that they benefit from the project activities and are not adversely impacted.

Existing Policy and Legal Framework

Although there is no legislation specifically tailored for minor ethnic groups or vulnerable groups, the country’s development philosophy is based on all-inclusive, non-discriminatory development, which is gaining further ground with the growing impetus on decentralization. The national decentralization policy is geared towards enhancing local governance and promoting broad-based participation at the local community level. While geogs are officially considered the smallest unit for planning and administration of development programmes, local activities and priorities emanate from the chiog level. Each chiog is represented in the GYT by its tshogpa. The tshogpa convenes chiog meetings to discuss and draw consensus on local activities and priorities

34 before submitting them to the GYT. Such meetings are required to be attended by a member from each household in the chiog, irrespective of social or economic standing.

4.3.8 Safety of Dams (OP 4.37)

Applicability

This safeguard policy is triggered when the Bank finances: a project involving construction of a large dam (15 meters or higher) or a high hazard dam4; or a project which is dependent upon an existing dam.

The project will not have construction of any large or high hazard dam nor will it depend upon an existing dam. It does envisage construction of check dams but these will be “mini check dams”, at the most 2 meters high, across small watercourses, streams and gullies to check the velocity of water flow and resultant erosion.

Existing Policy and Legal Framework

Safety of dams is covered by the Environmental Assessment Act, 2000, and the Regulation for the Environmental Clearance of Projects, 2002, which makes environmental clearance mandatory for any project with potential adverse environmental impacts. The guidelines for environmental clearance application for hydropower projects requires details on dam’s physical features such as type of dam, crest height, crest length, top opening, bottom opening, and height of intake. The guidelines is not intended for check dams. Check dams of the kind of scale envisaged under the project can probably be considered at par with permanent works (retaining walls, breast walls, causeways), which are listed in Annex 2 of the Regulation for the Environmental Clearance of Projects, 2002.

4.3.9 Projects in Disputed Areas (OP 7.60)

Applicability

This policy is triggered if the proposed project will be in a “disputed” area. This policy is not relevant as Bhutan is not involved in any dispute over area with another country, let alone the project being situated in a disputed area.

4.3.10 Projects on International Waterways (OP 7.50)

Applicability

The following types of international waterways are covered by this policy:

 Any river, canal, lake or similar body of water that forms a boundary between, or any river or body of surface water that flows through two or more states;

 Any tributary or other body of surface water that is a component of any waterway described above; and

4 As per WB safeguard policy on Safety of Dams, “10 to 15 meter high dams are considered high hazard dams if they: have special design complexities, e.g. unusually large flood handling requirements; are located in a zone of high seismicity; have foundations that are complex and difficult to prepare; or retain toxic materials.

35  Any bay, gulf strait, or channel bounded by two or more states, or if within one state recognized as a necessary channel of communication between the open sea and other states, and any river flowing into such waters.

The policy becomes applicable if the proposed project pertains to hydropower, irrigation, flood control, navigation, drainage, water and sewerage, industrial and similar projects that involve the use of potential pollution of international waterways. It is also applicable for detailed design and engineering studies of aforesaid projects.

SLMP activities in Phuentsholing geog will largely take place in Dhutekhola watershed, which is a component of the larger Torsa river system which flows into the neighbouring Indian state of West Bengal. However, sustainable land management interventions – for example reforestation, improved livestock and grazing management, and sloping agriculture land technology – in the watershed are expected to prevent/ reduce impacts on downstream communities in both Bhutan and India as a result of land slides and flash floods.

4.3.11 Comparative Summary

The table below compares WB environmental safeguard policy requirements with existing RGoB policy and legal provisions.

Table 4: Comparison of WB Safeguard Policy Requirements and Existing RGoB Policy/Legal Provisions

Key WB Requirements Relevant Provisions in Existing National Legislations, Regulations and Guidelines

Environmental Assessment (OP 4.01)  EAA (Articles 7 to 10) and RECOP (Sections 16 to 19) EA of all projects/ activities that are make EA mandatory and EC prerequisite for all projects/ proposed for WB financing and are activities that may have adverse environmental impacts. likely to have potential environmental  NECS is the overall authority for the EA process and the EC risks and adverse impacts in their area authority for activities not listed in Annex 2 of RECOP. of influence.  DoA, DoF, MTI, and MWHS make up all of the currently assigned competent authority for activities listed in Annex 2 of RECOP.

Natural Habitats (OP 4.04)  FNCR (Section 62) prohibits any human activities within No significant conversion or the core zone of a protected area unless determined degradation of critical natural habitats, necessary by forest/ protected area officials to achieve whether directly through construction nature conservation objectives. or indirectly through human activities  FNCR (Section 62) prohibits any construction activities induced by the project activities. within a protected area except with a written permit or authorization from the MoA.  The FNCR (Section 70) stipulates that land clearance may be avoided in protected areas, water catchment areas and areas containing high forest.  The FNCR (Section 70) stipulates that land clearance shall not be permitted within 100 feet on either side of the banks of rivers, streams or water sources kept as riparian reserve for conservation.  With the intent to prevent soil erosion, FNCR (Section 70) stipulates that land clearance shall not be permitted on slopes greater than 45 degree.

36 Key WB Requirements Relevant Provisions in Existing National Legislations, Regulations and Guidelines

 As per the RECOP (Section 17 and 18), official clearance from the DoF is mandatory for projects/ activities that may affect natural habitats.

Forestry (OP 4.36)  Relevant prohibitions inside a forest as per FNCR (Section No project/ activity to have potentially 22) include, except when permitted by the DoF in an significant adverse impact on forested emergency or in compliance with any applicable forest areas management plan: using dynamite or other explosives for any purpose; any felling of trees without written permit and without marking; and felling or marking of trees within a river buffer.  As per the RECOP (Section 17 and 18), official clearance from the DoF is mandatory for projects/ activities that may affect forest land.

Pest Management (OP 4.09)  PAB enacted inter alia to ensure IPM is pursued, limiting No use of formulated products that fall the use of chemical pesticides as the last resort, and only in WHO Classes Ia and Ib, or appropriate types and quality of pesticides are introduced formulations of products in Class II, if into the country, and to minimize deleterious effects to (a) the country lacks restrictions on human beings and the environment from pesticide use. their distribution and use; or (b) they  PAB (Articles 4 to 6) stipulate strict requirements for are likely to be used by, or be import, sale and use of pesticides. accessible to, lay personnel, farmers, or  Procurement and distribution of all pesticides is centrally others without training, equipment, and controlled. facilities to handle, store, and apply these products properly.

Implementation of IPM practices An IPM programme is in place and IPM guidelines exist in the form of a series of extension leaflets describing pest organisms, their lifecycles, damage symptoms, biological and cultural control measures, and controlled use of chemical pesticides where such use becomes inevitable.

Cultural Property (OP 4.11)  The RECOP (section 17) requires official clearance from the No project/ activity to have potential MHCA for any project/ activity within 50 m distance of a adverse impact on cultural properties cultural site or sacred landscapes.  The DYT Chathrim, 2002, mandates the DYT to adopt and enforce regulations for designation and protection of monuments of cultural and historical importance in the dzongkhag.  The GYT Chathrim, 2002, mandates the GYT to administer, monitor and review geog plan activities, including maintenance and preservation of religious monuments that are not under the custody of monastic body or central agencies

37 Chapter 5 STAKEHOLDER CONSULTATIONS

5.1 OVERVIEW

5.1.1 Consultations with Stakeholders at the Local Level

Consultations were held at local level with primary stakeholders, namely the local communities, GYT members and geog RNR extension agents, in all the three pilot project sites. The consultations with primary stakeholders at the local level covered both environmental and social assessment aspects based on a checklist of guide topics (Annex 3). From the environmental assessment aspect, the consultations focused on: (i) assessing local views and understanding of the project; (ii) identifying potential environmental impacts and issues from the project; (iii) reviewing the status of enforcement of environmental management regulations at the local level; and (iv) assessing capacity building needs for enhancing environmental management. The local level consultations were basically done in two forms: one, group discussions with a cross-section of men and women, including some who were GYT members; and, two, interviews of individual households, with special attention to including households belonging to vulnerable group5 so that local views and concerns are more broadly captured. All in all, 67 local people were consulted: 18 in Radhi geog, 26 in Nangkor geog, and 23 in Phuentsholing geog. Of these, 27 (40.3 percent) were women and 32 (47.8 percent) belonged to the vulnerable group. Owing to its matriarchal society, women representation was highest in Nangkor geog with nearly 54 per cent of the participants being women. In Radhi and Phuentsholing geogs, women representation was about 28 and 35 per cent respectively

Table 5: Summary of Primary Stakeholders Consulted at the Local Level

Pilot Project Site Number of Male Female Belonging to people Vulnerable Household Group Discussions No. % No. % No. % Radhi 6 4 66.7 2 33.3 1 16.7 Nangkor 10 4 40 6 60 0 0 Phuentsholing 6 5 83.3 1 16.7 0 0 Household Interviews No. % No. % No. % Radhi 12 9 75 3 25 10 83.3 Nangkor 16 8 50 8 50 10 62.5 Phuentsholing 17 10 58.8 7 41.2 11 64.7 Overall 67 40 59.7 27 40.3 32 47.8

5.1.2 Consultations with Stakeholders at the Central Level

At the central level, consultative meetings were held with the SLMP-WG, which has representation from all the agencies with major stake in sustainable land management. These

5 Households belonging to vulnerable group were determined in terms of low cash income, landless or small landholding, recurrent food deficit, high proportion of dependents (young children, old parents, disabled members), and woman-headed households due to death/ illness of husband or divorce.

38 include the MTI, MWHS, NECS, MoA and its various departments – DoA, DoF, DoL and DSLR. NECS is the overall authority for environmental assessment while the other agencies mentioned above make up all the currently assigned Competent Authorities for environmental clearance of activities listed in Annex II of the Regulation for the Environmental Clearance of Projects. Discussions during consultative meetings with the SLMP-WG focused on: (i) adverse environmental impacts and mitigation measures in relation to the project design; (ii) environmental screening and clearance process; (iii) role and responsibilities of various institutions; and (iv) monitoring framework.

5.2 SUMMARY OF KEY FINDINGS

5.2.1 Local Perception and Understanding of the Project

Awareness about the SLMP was basically limited to people who had participated in the stakeholders’ workshops held in each pilot project site for project formulation with facilitation by members of the SLMP-WG and a visiting WB/GEF consultant. Among those who participated, many could recall the issues and activities that were discussed and expressed satisfaction with the outcomes of the workshops. However, the information on discussions and outcomes of the workshops had not spread out to the wider community. Hence, only few among the people who had not participated at the stakeholders’ workshops had heard about the SLMP but did not really know what it specifically involved. Thus, to people who were not aware about what the project would involve, the objectives of SLMP and probable activities were outlined to enable them to give their views. The perception of the local people – especially in Radhi and Phuentsholing geogs – was that such a project was very much needed and would be immensely beneficial as many of them had incurred substantial losses (land, livestock and houses) due to landslides and flash floods during monsoons in the recent years. They expected that such a project would provide them with material assistance such as barbed wire for fencing degraded areas and technological assistance such as training on nursery techniques for production of seedlings of fuelwood, fodder, fruit and other species including those with soil-binding properties. In Nangkor geog, although the feedback was not as strong as in Radhi and Phuentsholing geogs, the local perception about the project was certainly positive, with many people expecting to benefit most from alternate income-generating activities and from assistance to shift from tseri to other farming practices that would bring them improved returns.

5.2.2 Environmental Impacts and Issues

To the local people in Radhi and Phuentsholing geogs, it was obvious that the project will improve their natural environment and reduce economic losses that they have to incur almost every year as a result of landslides and flash floods. In these two geogs, several farmers reported sinking and undulation of their farmlands due to excessive water seepage and expected benefiting from training, guidance and material support for irrigation water management and planting of crop varieties which are less dependent on water. In Nangkor, the local people talked about the project having long-term environmental benefits by supporting the local people to take proactive land management measures to sustain agriculture, livestock production and use of surrounding natural resources. When asked about potential negative environmental impacts, the local people were unable to mention any that would result from the project. The common response was that they did not expect any negative environmental impacts from the project as it was primarily about improving local environmental conditions. To stimulate their thoughts, some examples of potential adverse environmental impacts from the project were mentioned to the local people. These included:

39  further forest degradation as a result of cutting poles and small timber from surrounding forest for construction of cattle sheds which may become necessary when stall feeding is promoted to reduce overgrazing;

 unsanitary condition of homesteads and contamination of domestic water supply due to lack of management of animal effluent generated by stall-fed cattle;

 impact on natural regeneration if wildlings are collected from the forest for homestead and community forest plantations.

While the respondents agreed that adverse environmental impacts such as above are a possibility, they suggested that these can be readily managed with some basic mitigation measures. For instance, the local people in Radhi said that they have started planting bamboo in their homesteads. With the inception of the project, they intend to plant more bamboo which they can use for fencing, repairing houses, and constructing cattle sheds. As for generation of animal effluent and contamination of domestic water supply, the local response was that they would use animal waste for manuring and that with some basic training and guidance on animal waste management they would be able to prevent water contamination and maintain/ improve sanitary conditions. With regards to impact on natural regeneration due to collection of wildlings for homestead and community forest plantations, the local people expected that project will help them establish forest nurseries through training and material assistance. The general conclusion was that some project activities may have adverse environmental impacts but these will be limited and readily manageable.

5.2.3 Implementation of Environmental Management Regulations

Regulations related to forest and nature conservation are enforced in the field by territorial forestry staff or protected area staff. All the three pilot sites have a territorial range office. In Radhi, there is also the head office of Sakten Wildlife Sanctuary. It is a temporary location and will be shifted to the adjacent Phongme geog once the office buildings are completed. As a result of widespread presence of forestry/ protected area staff in the field, enforcement of forest and nature conservation regulations is strong.

The implementation of environmental management provisions of GYT and DYT Chathrim, 2002, is currently limited due to lack of capacity and experience among GYT and DYT members. However, in Radhi geog, it was noted that the GYT has adopted regulations to restrict cattle population and to restrict use of a huge tract of degraded catchment forest to allow rehabilitation.

At the present, the enforcement of EA requirement is basically limited to infrastructure projects and industrial operations. It is to a large extent centrally-driven at the level of the NECS because of limited capacity within line ministries/ departments. In order to strengthen implementation of EA at the local level and in keeping with the national decentralization policy, the NECS and Dzongkhag Administrations have formed a Dzongkhag Environmental Committee (DEC) in each dzongkhag and a EA training programme for the DEC members has been initiated since December 2004. The composition of DECs in Trashigang, Zhemgang and Chhukha dzongkhags are as following:

Trashigang Dzongkhag Zhemgang Dzongkhag Chhukha Dzongkhag 1. Dzongdag (chairperson) 1. Dzongdag (chairperson) 1. Dzongdag (chairperson) 2. Dzongkhag Planning Officer 2. Dzongkhag Planning Officer 2. Dzongkhag Planning Officer (focal point)

40 3. Dzongkhag Agriculture Officer 3. Dzongkhag Agriculture Officer 3. Dzongkhag Agriculture Officer 4. Dzongkhag Forestry Extension 4. Dzongkhag Forestry Extension 4. Dzongkhag Forestry Extension Officer Officer (focal point) Officer (focal point) 5. Dzongkhag Engineer 5. Dzongkhag Engineer 5. Dzongkhag Engineer 6. Divisional Forest Officer 6. Dzongkhag Land Records Officer (Zhemgang Forest Division)

The DECs will be assigned as Competent Authority for environmental screening and clearance of local level projects/ activities that are small-scale and not likely to have any significant adverse environmental impacts. The detailed terms of reference and the list of activities that the DECs can issue/ deny environmental clearance are under discussion between NECS and the DECs and will be finalized after the EA training programme of the DEC members is completed.

Since the procurement and distribution of all pesticides are controlled by the MoA and the delivery is done through the dzongkhag agricultural service system, there is no indiscriminate and unregulated use of pesticides at the local level. Farmers are also averse to using pesticides because of religious sentiments associated with killing living organisms.

At the local level, the protection and maintenance of cultural properties is built in the mandate of the DYTs and GYTs. No development activities that may impact cultural resources can be implemented without clearance from the MHCA and the consent of DYTs and GYTs. By tradition, the protection and maintenance of cultural properties has been very strong at the community level. This was confirmed by the fact that in all the three pilot project sites the lhakhangs and goenpas were owned and managed either by the local community or by some private religious body.

5.2.4 Capacity Building Needs

The geog RNR extension agents have the most direct role for training farmers and providing technical guidance in the area of SLM. Geog RNR extension agents in all the three pilot sites were confident about their ability to train local people in the implementation of mitigation measures as they felt that project would only have limited potential adverse environmental impacts entailing some basic mitigation measures. However, to be more effective in training and guiding farmers, they expected that the SLMP would have training programmes for them to enhance their knowledge and skills on specialized subjects such as IPM, IPNM and silvicultural techniques to harvest non-timber forest products. In addition, they also suggested that a training workshop on EMF implementation and monitoring at the geog will be critical. This opinion was also shared by the GYT members. The idea of having an EA manual for use at geog/ chiog level was also discussed with the geog RNR extension agents and the GYT members. They felt that such a manual would be useful and suggested that it should be in simple language with illustrations given the low literacy level of the local people.

41 Chapter 6 OPERATIONAL FRAMEWORK FOR ENVIRONMENTAL MANAGEMENT

6.1 PURPOSE AND DESCRIPTION

The operational framework (OF) outlines the framework for planning, implementation and monitoring of environmental management measures required to ensure that potential adverse environmental impacts from the project activities are eliminated, offset, or reduced to an acceptable level. At the same time, it is expected that the OF will help the project enhance environmental benefits from the project interventions. The OF has been built on relevant existing national policies, legislations, regulations and guidelines, in concord with WB safeguard policy requirements. Specifically, the OF is organized in the following sections:

1. Potential environmental impacts and mitigation measures: At the outset, potential adverse environmental impacts and mitigation measures are outlined to give an impression of the nature and magnitude of the impacts and mitigation measures that can be associated with the project. In doing so, it depicts the scope of environmental management measures that may be required for the project.

2. Environmental screening and assessment: All proposed project interventions will be screened to determine: whether or not they should be included under this project based on the negative list of activities; assess the nature and magnitude of environmental impacts involved; and determine the level of environmental screening and clearance required. The environmental screening and clearance procedures are largely based on existing RGoB laws and regulations, and in concord with WB safeguard policy requirements.

3. Capacity building: The implementation of EMF will necessitate improved knowledge and skills particularly at the dzongkhag, geog and chiog levels. This section identifies capacity building needs for EMF implementation and accordingly outlines a capacity building plan.

4. Monitoring Framework: This framework specifies the parameters that need to be monitored and related indicators to determine the effectiveness of the environmental impact mitigation measures. It also outlines the course of action to be taken based on the impact outcomes.

5. Institutional Arrangement: This section outlines the roles and responsibilities of the different actors and agencies in implementing the EMF.

6. Budget Estimate: The last section provides estimated budget for implementation of the EMOF, basically relating to capacity building and EA preparation and monitoring.

6.2 POTENTIAL ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES

By design, the project is expected to have far greater environmental benefits than adverse environmental impacts. The potential adverse environmental impacts from the project are likely to be small and limited. Having said that, it is recognized that such impacts can accrue into larger impacts if they are not identified early on in the planning cycle and their mitigation measures integrated in the project planning and implementation.

42 The Table below is presented to give an impression of the nature and magnitude of adverse environmental impacts and mitigation measures that can be associated with SLMP as currently conceived and depict the scope of environmental management measures that may be necessary. Location and design-specific adverse environmental impacts and mitigation measures will be determined through the environmental assessment process outlined in Section 6.3.

Table 6: Potential Adverse Environmental Impacts and Corresponding Mitigation Measures

Probable Activities Negative Environmental Mitigation Measures When Primary Responsible Supporting Personnel/ Impacts Personnel/ Institutions Agencies Sustainable Agriculture Promotion of cash May induce use of pesticides Exclude from the project any Planning stage Local community, Geog Geog Agriculture crop production pesticides that are classified as Class SLMP Field Coordinator, Extension Agent, I, IIa and IIb by WHO (see Annex 4) Geog SLMP Planning Team Dzongkhag Agriculture Officer, NPPC, RNRRC Apply chemical pesticides at low Operational stage Local community, Geog Geog Agriculture limits SLMP Field Coordinator, Extension Agent, Geog SLMP Planning Team Dzongkhag Agriculture Officer, NPPC, RNRRC Integrated Plant Production of FYM may Introduce and employ proper Planning and Local community, Geog Geog Livestock Nutrition necessitate farmers to maintain collection, storage and dispersal operational stages SLMP Field Coordinator, Extension Agent, Management large numbers of cattle, methods for FYM so that there is Geog SLMP Planning Team Dzongkhag Livestock contributing to overgrazing; minimum wastage and increased Officer production of FYM per cattle Some chemical fertilizers even Avoid such chemicals, or apply at Planning and Local community, Geog Geog Agriculture in low quantities may have lowest limit possible operational stages SLMP Field Coordinator, Extension Agent, high cumulative toxic effects. Geog SLMP Planning Team Dzongkhag Agriculture Officer, NSSC, RNRRC Integrated Pest Some chemical pesticides even Exclude from the project any Planning stage Local community, Geog Geog Agriculture Management in low quantities may have pesticides that are classified as Class SLMP Field Coordinator, Extension Agent, high cumulative toxic effects. I, IIa and IIb by WHO (see Annex 4) Geog SLMP Planning Team Dzongkhag Agriculture Officer, NPPC, RNRRC

43 Probable Activities Negative Environmental Mitigation Measures When Primary Responsible Supporting Personnel/ Impacts Personnel/ Institutions Agencies Apply chemical pesticides at lowest Operational stage Local community, Geog Geog Agriculture limit possible SLMP Field Coordinator, Extension Agent, Geog SLMP Planning Team Dzongkhag Agriculture Officer, NPPC, RNRRC Agro-forestry Use of exotic species Select indigenous species for agro- Planning stage Local community, Geog Geog Forestry and forestry SLMP Field Coordinator, Agriculture Extension Geog SLMP Planning Team Agents, Dzongkhag Forestry and Agriculture Officers, Social Forestry Division (DFS), RNRRC Introduction of Land degradation as result of Conduct land capability studies and Planning stage NSSC, RNRRC, Dzongkhag Policy and Planning alternatives (orchard, incompatibility between the introduce alternatives according to Agriculture and Forestry Division (MoA), agro-forestry, SALT, introduced alternative and land land capability Extension Officers, Geog Department of Survey etc) to tseri capability Agriculture and Forestry and Land Records, Extension Agents, SLMP Department of Forestry Field Coordinator, Geog Services SLMP Planning Team, local community Land swapping/ Land degradation as a result of Conduct land capability studies to Planning and NSSC, RNRRC, Dzongkhag Policy and Planning conversion land swapping/ conversion determine land capability for land operational stages Agriculture and Forestry Division (MoA), swapping/ conversion and Extension Officers, Geog Department of Survey implement land swapping/ Agriculture and Forestry and Land Records conversion as per land capability Extension Agents, SLMP Field Coordinator, Geog SLMP Planning Team, local community Improved Livestock and Pasture/ Fodder Management Promotion of Decline in indigenous breeds, Focus on cross-breeding and Planning stage Local community, Geog National Livestock improved breeds and affecting domestic biodiversity maintenance of robust indigenous SLMP Field Coordinator, Breeding Programme, castration/ breeds rather than on replacing Geog SLMP Planning Team RNRRC, Dzongkhag sterilization of indigenous breeds with exotic Livestock Officer, Geog unproductive stocks breeds. Livestock Extension

44 Probable Activities Negative Environmental Mitigation Measures When Primary Responsible Supporting Personnel/ Impacts Personnel/ Institutions Agencies (or disposal as Agent tsedar) to reduce livestock population Promotion of stall Stall feeding may generate Develop and employ guidelines for Planning stage SLMP Field Coordinator, Geog Livestock feeding through excessive animal effluent, design, construction and Geog SLMP Planning Team, Extension Agent, provision of animal resulting in unsanitary maintenance of animal sheds to local community Dzongkhag Livestock sheds and improved conditions in homesteads and ensure that they are environmentally Officer, Livestock Health feed production in contamination of domestic sound in terms of maintenance of Division, Public Health homesteads water supply; sanitary conditions and use of forest Division (DoH) products Enhance animal waste management, Operational stage Local community, Geog Geog Livestock including collection and storage for SLMP Field Coordinator, Extension Agent, use as FYM, through farmers’ Geog SLMP Planning Team Dzongkhag Livestock training and enforcement of sanitary Officer, Livestock Health standards Division Construction of animal sheds Develop and employ guidelines for Planning stage SLMP Field Coordinator, Geog Livestock and collection of fodder would design, construction and Geog SLMP Planning Team, Extension Agent, entail extraction of poles, small maintenance of animal sheds to local community Dzongkhag Livestock timber and fodder from natural ensure that they are environmentally Officer, Dzongkhag forests and exacerbate forest sound in terms of use of forest Engineer, Livestock degradation. products and maintenance of Health Division, Public sanitary standards; Health Division (DoH) Establish community and homestead Operational stage Local community, Geog Geog Forestry Extension forest plantations of fast growing SLMP Field Coordinator, Agent, Dzongkhag native species (e.g. bamboo) to Geog SLMP Planning Team Forestry Officer, Social produce poles, timber, fodder and Forestry Division (DFS), fuelwood and employ appropriate territorial forestry offices silvicultural techniques, e.g. lopping, pollarding and coppicing, to allow vegetative growth even after extraction of poles, small timber and fodder. Improved feed Plantation of fodder species Select native species for fodder Planning stage Local community, Geog Geog Forestry Extension production through may involve exotic and plantation. SLMP Field Coordinator, Agent, Dzongkhag introduction of invasive species, thereby Geog SLMP Planning Team Forestry Officer, Social alternative feed, e.g. affecting indigenous Forestry Division (DFS)

45 Probable Activities Negative Environmental Mitigation Measures When Primary Responsible Supporting Personnel/ Impacts Personnel/ Institutions Agencies hay and silage, and biodiversity. plantation of fodder species in degraded and barren areas. Forest Management and Rehabilitation Protection of forest Enrichment planting may Use only native species for Planning stage Local community, Geog Geog Forestry Extension from grazing and involve exotic species enrichment planting SLMP Field Coordinator, Agent, Dzongkhag cutting, and if Geog SLMP Planning Team Forestry Officer, Social necessary Forestry Division (DFS), enrichment planting, territorial forestry offices in catchment areas and other ecologically vulnerable areas Establishment of Forestry plantations may Select and plant only native species Planning and Local community, Geog Geog Forestry Extension community and involve exotic species operational stages SLMP Field Coordinator, Agent, Dzongkhag private forest Geog SLMP Planning Team Forestry Officer, Social plantations (for Forestry Division, production of territorial forestry offices fuelwood, fodder, Forest plantations may involve Create forest nurseries of native Operational stage Local community, Geog Geog Forestry Extension poles and timber), collection of wildlings, species to supply seedlings for the SLMP Field Coordinator, Agent, Dzongkhag including creation of affecting natural forest forestry plantations. Geog SLMP Planning Team Forestry Officer, Social forest nurseries regeneration. Forestry Division, territorial forestry offices

Community Community management of Develop community forest Planning stage Geog SLMP Field Geog Forestry Extension management of forest may degenerate into management plan and establish Coordinator, Geog SLMP Agent, Dzongkhag forests surrounding competitive and unregulated users’ group in accordance with Planning Team, local Forestry Officer, Social villages use Chapter IV of the Forest and Nature community Forestry Division Conservation Rules 2000 and Community Forestry Manual for Bhutan 2003

46 Probable Activities Negative Environmental Mitigation Measures When Primary Responsible Supporting Personnel/ Impacts Personnel/ Institutions Agencies General Soil Protection/ Stabilization Bioengineering Vegetative plantation may Select and plant only native species. Planning and Local community, Geog Geog Forestry Extension works along erosion- involve exotic species operational stages SLMP Field Coordinator, Agent, Dzongkhag prone sections of Geog SLMP Planning Team Engineer, Dzongkhag existing roads and Forestry Officer, irrigation channels Department of Roads, Engineering Division (DAS), territorial forest office, NSSC Construction of soil Inappropriate design and  Design and technical oversight Planning and Dzongkhag engineer, local DoA (Engineering stabilization/ construction materials may on material standards and use by operational stages communities, Geog SLMP Division), NSSC protection structures cause failure of structures qualified engineers, taking into Planning Team (e.g. check dams, account the geotechnical aspects gabion walls) in of the site; erosion prone areas  Site inspection by qualified engineers for early identification of faults and timely rectification. Rehabilitation of Inadequate rehabilitation of Design and site inspection by Planning and Local communities, Geog RNR Extension small rural borrow areas, cross drainage qualified engineers and local operational stages Dzongkhag engineer, Geog Agents, DoA infrastructure problems, water logging, residents trained on maintenance to SLMP Planning team (Engineering Division) (irrigation channels, sludge disposal, etc ensure good drainage, rehabilitation rural water schemes, of borrow areas, sludge disposal, etc wastewater drainage)

Improper location of Conduct a joint walk with local Planning stage Dzongkhag engineer, local DoA (Engineering rectification points may community to locate rectification communities, Geog SLMP Division), Department of continue/ exacerbate erosion. points, taking into account the Planning Team Geology & Mines geotechnical aspect and natural drainage features

Use of inappropriate materials Select materials carefully for repair Planning stage Dzongkhag engineer, local DoA (Engineering for repair may continue/ works communities, Geog SLMP Division) exacerbate erosion Planning Team

47 Probable Activities Negative Environmental Mitigation Measures When Primary Responsible Supporting Personnel/ Impacts Personnel/ Institutions Agencies Alternative Livelihoods/ Rural Enterprises Mushroom Degeneration of forests as a Promote mushroom varieties that do Planning stage Local community, Geog National Mushroom cultivation result of harvesting of billets not have to be spawned on billets SLMP Field Coordinator, Center, Geog Forestry for mushroom spawning Geog SLMP Planning Team Extension Agent Plan and employ appropriate Planning and Local community, Geog Geog Forestry Extension silvicultural techniques, e.g. operational stages SLMP Field Coordinator, Agent, Dzongkhag coppicing, for harvesting billets Geog SLMP Planning Team Forestry Officer, territorial forestry office Textile weaving and Use of chemical dyes in Promote use of vegetable dyes Planning stage Geog SLMP Field - handicrafts textiles leading to water Coordinator, Geog SLMP pollution Planning Team

Animal Increased rearing of horses,  Enhance animal waste Operational stage Local community, Geog Geog Livestock Transportation mules and donkeys, and management, including collection SLMP Field Coordinator, Extension Agent, (rearing of horses, backyard dairy, piggery, and storage for use as FYM, Geog SLMP Planning Team Dzongkhag Livestock mules and donkeys) poultry, etc would result in through farmers’ training and Officer, Livestock Health increased generation of animal Division Promotion of enforcement of sanitary effluent and thereby backyard dairy, standards. contamination of land and piggery, and poultry  Construct proper stable/ shed for water at household/ keeping animals. cooperative level

48 6.3 ENVIRONMENTAL SCREENING AND ASSESSMENT

Every activity proposed under the project will be subjected to initial environmental screening. Any activity that falls in the following negative list will NOT be covered by the project:

6.3.1 Negative List of Activities

This negative list of activities has been compiled based on the laws, regulations and guidelines of the RGoB and the WB safeguard policy requirements. It includes:

Table 7: Negative List of Activities Activity Source/ Basis Any activity involving construction, settlement, land use, plantation Forest and Nature Conservation and extraction of forest products inside the core zone of a protected Rules 2000 – Chapter VI Sec 62 area. Any activity that entails conversion of natural habitat harbouring any WB Safeguard Policy on Natural globally threatened or nationally protected species. Annex 9 Habitats (OP 4.04) provides the list of globally threatened and nationally protected species of birds and mammals in Bhutan. Any activity that may cause disturbance or pollution of a water Forest and Nature Conservation source or watercourse Rules 2000 – Chapter III Sec 22 (1) a and b Any activity that involves cutting of trees or land clearance within Forest and Nature Conservation 100 feet on either side of the banks or edge of the rivers, streams, Act 1995 – Sec 14 (a) water courses or water sources kept as riparian reserve for Forest and Nature Conservation conservation Rules 2000 – Chapter VIII Sec 70 (6) c Any activity that involves land clearance on slopes greater than 45 Forest and Nature Conservation degree (100%); Act 1995 – Sec 14 (a) Forest and Nature Conservation Rules 2000 – Chapter VIII Sec 70 (6) c Any activity that involves the procurement and/or use of pesticides WB Safeguard Policy on Pest categorized as Class Ia, Ib and II as per WHO Classification. Annex Management (OP 4.09) 10 provides the list of pesticides belonging to the above classes.

6.3.2 Initial Environmental Screening

Given that the SLMP is community-based by design and that the activities will originate from the chiog level based on a participatory approach, the chiog (represented by its tshogpa) will be considered as the proponent of the activity and, therefore, the applicant for environmental screening and clearance of the proposed activity.

The first step will be to conduct a field investigation and accordingly fill in the initial environmental screening sheet (format 1 provided in Annex 4). Assessment of the information in the initial environmental screening sheet will determine if the proposed activity:

(a) belongs to the negative list of activities;

(b) does not belong to the negative list but requires environmental clearance; or

49 To determine whether or not an activity requires environmental clearance, Annex 2 of the Regulation for the Environmental Clearance of Projects, 2002, will be referred. If the proposed activity is not listed in Annex 2 and where there is doubt about the need for environmental clearance or procedures involved, the project will informally consult the NECS or the relevant Competent Authority.

Based on the outcome of the initial environmental screening, the following actions will be taken:

(i) if it is (a), the proposed activity will not be included in the geog SLMP plan;

(ii) if it is (b), additional field investigation as necessary and detailed community discussion will be carried out and accordingly environmental information (format 2 provided in Annex 5) for the proposed activity will be prepared for environmental screening and clearance;

(iii) if it is (c), the proposed activity will be earmarked for inclusion in the geog SLMP plan. If the activity – although not requiring environmental clearance – is expected to however have some potential adverse environmental impact, the applicant will be required to prepare a simple environmental impact management plan (format 3 provided in Annex 6) for internal project use.

6.3.3 Environmental Assessment

The formal EA process is triggered when initial environmental screening determines that the propose activity requires further screening and environmental clearance in accordance with the Regulation for the Environmental Clearance of Projects, 2002.

In the Bhutanese context, there are two levels of EA. The first level is based on review of environmental information of proposed activity and issuance/denial of environmental clearance based on this review. The second level involves full-blown EA and this becomes necessary only if the review of environmental information of the proposed activity indicates that it is significant in scale and/or in terms of potential adverse environmental impacts. In view of its environmental objective, the SLMP will not have any activity entailing significant potential adverse environmental impacts and, therefore, requiring full-blown EA.

For activities for which EA guidelines or ECOPs have been issued by the NECS or Competent Authority, these guidelines or ECOPs will be used in the preparation of environmental information.

Environmental information of a proposed activity will be prepared for review and environmental clearance by the applicant. The format proposed for environmental information has been prepared keeping in mind the minimum requirements outlined in the Regulation for the Environmental Clearance of Projects 2002 and the need to keep it simple enough for the chiogs to be able to prepare it with guidance and assistance from the Geog SLMP Planning Team.

Review of environmental information and issuance/ denial of environmental clearance will be done at three levels: dzongkhag level by the Dzongkhag Environmental Committee (DEC) for activities for which they are the Competent Authority; ministerial/ departmental level by the relevant Competent Authority for activities listed in Annex 2 of the Regulation for Environmental Clearance of Projects, 2002; and NECS level for activities that are not listed in Annex 2 of the Regulation for Environmental Clearance of Projects, 2002.

50 The agency issuing environmental clearance will lay down clear terms and conditions under which the environmental clearance has been issued. In the case of denial of environmental clearance, the concerned agency will provide reasons for denial.

6.3.4 Public Consultation and Disclosure

6.4 CAPACITY BUILDING

The RGoB has not been able to fully enforce EA requirement due to lack of general awareness and understanding of the concept, legal framework and procedures for EA, and lack of capacity in terms of trained personnel and equipment. Consultations with DEC members, representatives of Competent Authorities in central ministries/ departments and NECS officials confirm that lack of training and experience, particularly at the dzongkhag level, is the single biggest impediment to implementation and monitoring of the EA process. Within the context of SLMP, it also becomes necessary to train and equip the Geog SLMP Field Coordinators, Geog SLMP Planning Teams, Geog RNR Extension Center staff, and GYT members (particularly the tshogpas) so that they can guide and assist the local communities in EA related activities.

This project is inherently an opportunity to reinforce the role and significance of EA as land degradation issues, which the project seeks to address, can be largely associated with the lack of integration of environmental considerations in planning and management of development projects/ activities such as road construction and irrigation scheme development. Lessons learnt from this project are expected to help the RGoB enhance the EA process in terms of design as well as enforcement.

51 Proposed capacity building for EMF under this project is shown as under:

 Training of Geog SLMP Field Coordinators, Geog SLMP Planning Teams, GYT members, geog RNR extension agents, and DEC members to sensitize them on EMF implementation and monitoring and provide them with knowledge and skills specifically to guide and assist the local communities in conducting field investigation, identifying potential adverse environmental impacts and mitigation measures, filling in initial environmental screening sheet, and preparing environmental information;  Development and dissemination of EA manual for use at geog/ chiog level. This manual will be bilingual (Dzongkha and English) with simple text and pictures explaining the various steps and the role and responsibilities at dzongkhag, geog and chiog levels, where relevant;  Provision of field equipment to geog SLMP team for EMF-related data collection and monitoring;  Institutional support toward the establishment of an Environmental Unit at Phuentsholing City Corporation so that there is in-house capacity in terms of trained personnel for environmental assessment and monitoring.

The table below provides the capacity building plan for EMF over the project period.

Table 8: EMF-related Capacity Building Plan

Capacity Building PY 1 PY 2 PY 3 PY 4 PY 5 PY 6 Resource Activity Agency(ies) Training EMF Implementation 3 - 6 - - - Project and Monitoring (1 in each (1 in each Management Training Workshop pilot site) site where Unit, NECS (duration: 3 days) SLMP is upscaled) EA Workshop 3 - 3 - 3 - NECS covering concept and (1 in each (1 in each (1 in rationale, and detailed dzongkhag dzongkhag each EA procedural and covered by covered by dzongkh information the SLMP) the SLMP) ag requirement as per covered EAA and RECOP by the (duration: 2 days) SLMP) Training support 1 EA - - - - - Regional/ towards establishment specialist international of Environmental Cell (for 3-6 training institute at Phuentsholing City months ex- Corporation for country environmental training) assessment and monitoring Other environmental management related training as currently reflected in the proposed SLMP activities for pilot geogs Awareness-building on Radhi Radhi Radhi PMU, MoA, existing land MTAC degradation problems Community training Radhi RNRRC, DoL on improved cattle

52 Capacity Building PY 1 PY 2 PY 3 PY 4 PY 5 PY 6 Resource Activity Agency(ies) management Farmers’ training on Radhi, Radhi RNRRC, NSSC, IPNM Nangkor MoA P’ling Community Radhi, RNRRC, DoA awareness-building Nangkor and training on water management Environmental Radhi DoF, DoA, awareness study tour NECS for farmers Community training Nangkor DoA on SALT P’ling Training of farmers Nangkor, Nangkor Nangkor NPPC and farmers’ field P’ling P’ling P’ling school on IPM Study tour and training Nangkor DoL on improved pasture P’ling management Awareness workshop Nangkor DoA, DoF for local communities P’ling on catchment / watershed management Development of Manual/ Guidelines Production and 250 copies - - - - - PMU, NECS dissemination of EA Field Manual Equipment Equipment for field 3 geogs - 6 geogs - - - - data collection and monitoring

6.5 MONITORING FRAMEWORK

The EMF will involve two types of monitoring. One will be compliance monitoring to ensure that environmental terms and conditions under which the environmental clearance was issued are being followed and that environmental impact mitigation measures are being implemented according to plan. The other will be impact monitoring to progressively assess environmental impacts over the project period and rectify mitigation measures if necessary.

6.5.1 Compliance Monitoring

Compliance monitoring will be done by means of field checks and review of periodic project progress reports which will include a section on implementation of environmental impact mitigation measures. Field checks will be sporadic by NECS or relevant Competent Authority, periodic (once in six months) by the Dzongkhag Environmental Committee, and regular (at least once in every three months) by the Geog SLMP Planning Team as the project proponent at the

53 field level. Regular monitoring will be done as a part of the overall project monitoring and the results will be incorporated in the quarterly project progress reports.

6.5.2 Impact Monitoring

Impact monitoring is an important element of the EMF as there is always some uncertainty as to the extent of impact of the project on the natural and social environments. There may also be some uncertainty about the effectiveness of the proposed mitigation measures. Impact monitoring will provide the basis for adaptive management of environmental mitigation measures.

Key Principles

The following principles will be applied to monitor environmental conditions in areas where project activities take place:

 Determination of indicators to be used for baseline and progressive monitoring;

 Collection of important and relevant data;

 Application of quantifiable criteria to the extent possible with respect to prescribed indicators;

 Objective analysis of the data collected using inter-disciplinary and participatory approaches;

 Drawing of rational conclusions and recommendations for improved mitigation measures to implementing agencies.

Baseline Establishment

It is important to establish the baseline to provide comparison for determination of the environmental changes affected by the project activities over the project period and the effectiveness of the mitigation measures. At the beginning of the project, the Geog SLMP Planning Team will collect necessary data and develop baseline (according to Table 9) for each geog where project activities are to take place.

Operational Monitoring

Once the project activities become operational, impact monitoring will be done biennially to progressively assess if the impacts have been accurately predicted and the mitigation measures are sufficient and effective. The Table below shows the key parameters that will be used for monitoring the impacts and the overall effectiveness of the mitigation measures:

Table 9: Impact Monitoring Table

Impact

Parameter Indicator(s) Baseline Change Degree of Impact* Land degradation Number of households affected by various forms of soil erosion and land undulation

54 Impact

Parameter Indicator(s) Baseline Change Degree of Impact* Area (in ha) affected by various forms of soil erosion and land undulation Level of presence of silt in key water courses and sources Grazing pressure Number of livestock, especially cattle Area (in ha) of degraded pasture Forests and other Area (in ha) of degraded forest/ Natural Habitats wasteland that has been rehabilitated Area (in ha) of catchment area protected/ managed Pesticide use Quantity of pesticides (kg/ liter) used by WHO class Number of households using pesticide Quantity of pesticides (kg/ liter) used per household Water quality Level of presence of coliform in key water courses and sources Level of presence of pesticide ingredients in key water courses and sources * Degree of impact can be rated as none, positive, or adverse. If the impact is adverse, it can be rated as small, moderate or large.

Based on the assessment of the impacts, the following simple course of action is suggested:

 If the impact is none or positive, promote further enhancements if possible;  If the impact is adverse and small, the chiogs will be required to initiate local actions to examine the mitigation measures and rectify them as necessary. Technical assistance from the geog project team and geog RNR extension agents would be generally adequate;  If the impact is adverse and moderate, then the Geog SLMP Field Coordinator and Geog SLMP Planning Team would initiate and coordinate actions with the Dzongkhag SLMP Committee to mobilize technical assistance from dzongkhag/ regional agencies, as necessary, to rectify the mitigation measures;  If the impact is adverse and large (which is highly unlikely under this project and can only happen if there is prolonged negligence of mitigation measures), then the PMU will intervene and mobilize rectification measures from relevant central agencies with support from the Multi-Disciplinary Technical Advisory and Coordination Committee. The RGoB will bear all environmental and social costs occurring from negligence of mitigation measures.

As currently conceived, the project activities are expected to have largely positive impacts on the above parameters. Adverse environmental impacts are unlikely and if they do occur they are expected to be small.

55 Impact monitoring will be conducted in each geog, where SLMP is implemented, on a biennial basis (once every second project year). A team made up of representatives from the PMU, NECS, DoF and the concerned Dzongkhag Administration will conduct the operational monitoring and make the results available to the Geog SLMP Field Coordinator, Geog SLMP Planning Team and the chiogs.

6.6 INSTITUTIONAL ARRANGEMENT

The implementation of the EMF will be based on:

(a) procedural requirements set by the RGoB for environmental assessment and clearance;

(b) institutional arrangement for SLMP, particularly at the geog and chiog levels;

(c) enhancing community involvement through a bottom-up approach, beginning at the chiog level from where local planning starts.

Institutional responsibilities for implementation of EMF at various levels will be as specified below:

6.6.1 Local Level

Chiogs

Field Investigation and Preparation of Environmental Information

 Local people will carry out field investigation with guidance and assistance from the Geog SLMP Planning Team (GSPT) and accordingly fill in initial environmental screening sheet (format 1 provided in Annex 4);

 Based on the information in the initial environmental screening sheet, exclude activities if they belong to the negative list of project activities;

 For activities requiring environmental clearance, the local people will conduct additional field investigation if necessary, discuss among themselves and collectively identify potential adverse environmental impacts and mitigation measures with facilitation and guidance from the GSPT. Consequently, they will prepare environmental information (format 2 provided in Annex 5) with guidance and assistance from the GSPT;

 The chiogs will secure no objection certificate/ authorization from relevant government agencies as necessary for environmental clearance. They will be assisted by the GSPT in this task;

 After the environmental information has been prepared, the tshogpa will convene a chiog meeting to inform the public and confirm the contents of the environmental information before submission to the Dzongkhag Environmental Committee (DEC). The GSPT will attend such meetings as observers to provide guidance and clarification as necessary. The list of participants at this meeting will be annexed to the environmental information;

 For activities that do not require environmental clearance but are however likely to have some adverse environmental impacts even if limited, the local people – with facilitation and guidance

56 from the GSPT – will discuss the mitigation measures and develop a simple environmental impact mitigation plan (format 3 provided in Annex 6).

Public Disclosure

 When environmental clearance is received, the tshogpa will convene a chiog meeting, involving representation from each household, to inform the public about the environmental terms and conditions under which environmental clearance has been issued;

 If environmental clearance is denied, the tshogpa will convene a chiog meeting, involving representation from each household, to inform the public about the reasons for denial.

Monitoring

 The tshogpa will have the responsibility of day-to-day monitoring of mitigation measures at the chiog level. Where local people require technical guidance, he will inform the GSPT.

Geogs

Guidance and Assistance to Chiogs

 The GSPT will guide and assist the chiogs during field investigation and in completing the environmental screening sheet;

 If the proposed activity requires environmental clearance, the GSPT will guide and assist the chiogs to conduct additional field investigation as necessary, discuss and collectively identify potential adverse environmental impacts and mitigation measures, and prepare environmental information;

 The GSPT will assist the chiogs to secure no objection certificate/ authorization from relevant government agencies as necessary;

 If the proposed activity does not require environmental clearance but is however likely to have some adverse environmental impacts even if limited, the GSPT will guide and assist the chiogs to discuss the potential adverse environmental impacts and mitigation measures, and prepare the environmental impact mitigation plan;  To provide guidance and clarification as necessary, the GSPT will attend chiog meetings where completed environmental information is presented to the local people for information and confirmation before submission to the DEC.

Environmental Screening

 For an activity not requiring environmental clearance, the Geog SLMP Field Coordinator (GSFC) will review the information in the initial environmental screening sheet and if satisfied earmark the proposed activity for inclusion in the geog project plan. He/she will ensure that the proposed activity does not belong to the negative list;

 For activities not requiring environmental clearance, but are however likely to have some adverse environmental impacts even if limited, the GSFC will review the environmental impact mitigation plan and assess if it is adequate. If it is not adequate, he/she will ask the chiogs to

57 redevelop the plan and, if it is adequate, he/she will earmark the activity for inclusion in the geog SLMP plan;

 For activities requiring environmental clearance, the GSFC will review the environmental information to ensure that it is complete and satisfactory for submission to the DEC. He/ she will ensure that no objection certificate/ authorization has been secured from various agencies as necessary, and attached with the environmental information;

 The GSFC will copy to the PMU all environmental clearance application submitted to the DEC for information and record.

Field Monitoring

 The GSFC supported by the GSPT will conduct field visits at least once in three months to ensure implementation of the mitigation measures and provide guidance, where necessary. Such visits will be combined with overall project monitoring visits to save on time and cost. The results of this monitoring will be incorporated in the quarterly project progress reports.

Technical Support

 The GSFC will mobilize and coordinate delivery of technical assistance from the Geog RNR Extension Center as necessary for implementation of the mitigation measures. If expertise for such technical assistance is not available within the Geog RNR Extension Center, he/ she will coordinate with the Dzongkhag SLMP Committee to mobilize such assistance from dzongkhag/ regional/ central agencies as relevant and necessary.

6.6.2 Dzongkhag Level

Note: Dzongkhag Environmental Committees (DECs) were formed in 2004. Their terms of reference is presently under discussion between the NECS and Dzongkhag Administrations (the draft ToR is appended as Annex . The first of the EA training courses of DEC members was held in December 2004. The list of activities for which the DECs will be the Competent Authority is currently not known. It is understood that it will be decided after the terms of reference has been fully deliberated and the EA training programme of DEC members is completed.

Environmental Screening and Clearance

 If the environmental clearance application pertains to an activity for which the Dzongkhag Environmental Committee (DEC) is the Competent Authority, the DEC will review the environmental information and based on it issue or deny environmental clearance;

 If environmental clearance is issued, the DEC will provide clear terms and conditions that will need to be followed by the applicant;

 If environmental clearance is denied, the DEC will provide reasons for denial to the applicant;

 If the environmental information is incomplete or unclear, the DEC will ask the GSPC for lacking information and/ or clarification;

 If the environmental clearance application pertains to an activity for which the DEC is not the Competent Authority, the DEC will forward the environmental information for the proposed

58 activity to the relevant Competent Authority (in accordance with the Annex 2 of the Regulation for the Environmental Clearance of Projects, 2002) or to the National Environment Commission Secretariat (if the proposed activity is not listed in Annex 2 of that Regulation) after ensuring that the environmental information is complete and clear;

 The DEC will copy all communication related to issuance or denial of environmental clearance at their level to the PMU and NECS for information and record;

 The DEC will also copy all communication related to forwarding of environmental clearance application to the relevant Competent Authority or NECS to the PMU for information and record.

Administrative Approval

 Whether or not the DEC is the Competent Authority, all environmental clearance will require the administrative approval of the concerned Dzongdag in accordance with the Regulation for the Environmental Clearance of Projects, 2002.

Public Disclosure

 For any environmental clearance decision made by the DEC in its capacity as the Competent Authority, it will make public announcement of the decision and make necessary information available to the public.

Monitoring

 The DEC will conduct periodic field checks at least once in six months to monitor and ensure compliance of terms and conditions under which environmental clearance was issued.

6.6.3 Central Level

Competent Authority

Note: Annex 2 of the Regulation for the Environmental Clearance of Projects, 2002 provides the list of Competent Authorities and the activities that they can screen and issue/ deny environmental clearance. This list keeps on evolving with the improvement in the capacity of line Ministries and their agencies. Currently, the list contains the following Competent Authorities: Department of Industry, Department of Trade, and Department of Geology and Mines under the Ministry of Trade and Industry; National Authority for Construction Standards and Quality Control and City Corporation under the Ministry of Works and Human Settlement; and Department of Forestry and Department of Agriculture under the Ministry of Agriculture.

Environmental Screening and Clearance

 In accordance with the list of activities provided in Annex 2 of the Regulation for the Environmental Clearance of Projects 2002, the Competent Authority will review the environmental information and based on it issue or deny environmental clearance;

 If environmental clearance is issued, the Competent Authority will provide clear terms and conditions that will need to be followed by the applicant;

59  If environmental clearance is denied, the Competent Authority will provide reasons for denial to the applicant;

 The Competent Authority will copy all communication related to issuance or denial of environmental clearance at their level to the PMU and NECS for information and record;

Public Disclosure

 For any environmental clearance decision made by the Competent Authority, it will make public announcement of the decision and make necessary information available to the public.

Monitoring

 The Competent Authority will conduct sporadic field checks to monitor and ensure compliance of terms and conditions under which environmental clearance was issued.

National Environment Commission Secretariat

Environmental Screening and Clearance

 For any activity that is not listed in Annex 2 of the Regulation for the Environmental Clearance of Projects 2002, the NECS will review the environmental information and based on it issue or deny environmental clearance;

 If environmental clearance is issued, the NECS will provide clear terms and conditions that will need to be followed by the applicant;

 If environmental clearance is denied, the NECS will provide reasons for denial to the applicant;

 The NECS will copy all communication related to issuance or denial of environmental clearance to the PMU for information and record.

Public Disclosure

 For any environmental clearance decision made by the NECS, it will make public announcement of the decision and make necessary information available to the public.

Monitoring

 The NECS will conduct sporadic field checks to monitor and ensure compliance of terms and conditions under which environmental clearance was issued.

Project Management Unit

 Through review of project progress reports, the PMU will ensure that the implementation of the EMF is on track;

 The PMU will maintain record of all environmental clearance applications related to SLMP and their outcomes;

60  The PMU will liaise with NECS and other central/ regional agencies, as necessary, to implement the capacity building programmes;

 The PMU will procure and disburse equipment for field data collection and monitoring as reflected in the capacity building plan;

 The PMU will coordinate and lead the operational monitoring of project environmental impacts on a biennial basis as outlined in Section 6.5.2.

A flow chart (Figure 3) has been presented to summarize the environmental screening and clearance process that will be applied to this project and, subsequently, another flow chart (Figure 4) has been presented to outline the EA implementation responsibilities at various levels.

6.7 BUDGET ESTIMATE

It is estimated that a total of US$ 151,000 will be required for implementation of the EMF over the project period as per the following break-up:

Table 10: Year-wise Budget Estimate for EMF

Activity PY 1 PY2 PY3 PY4 PY5 PY6 Total Capacity Building EMF Training 13,500 - 23,100 - 9,000 - 45,600 Training Support to 20,000 - - - - - 20,000 Environmental Unit, PCC EA Manual 7,000 - - - - - 7,000 Equipment 8,000 - 17,000 - - - 25,000 EA Preparation/ Monitoring Field work/ data collection 3,800 2,000 8,000 5,000 - - 18,800 Field monitoring of mitigation 2,600 2,700 6,000 6,200 6,400 6,500 30,400 measures Biennial environmental - 1,200 - 1,400 - 1,600 4,200 impact monitoring Total 54,900 5,900 54,100 12,600 15,400 8,100 151,000

Costs of environmental management related training activities as presently proposed in the pilot geogs have not been included in the above budget estimate as such costs would be include in the overall project budget itself.

6.8 OTHER DONOR SUPPORT

Apart from being a co-financier of SLMP through its financial support for central policy work on sustainable land use and management, DANIDA’s support to “Environmental Regulation and Management at National and Local Level” component of the EUSPS will complement capacity building for decentralized EA implementation. Under this component, NECS will strengthen the capacity of the Ministry of Agriculture and Ministry of Works and Human Settlements and four dzongkhags to implement EA process and integrate environmental management needs in sectoral and dzongkhag plans and programmes with the aim to model them for extension to other sectors and dzongkhags. The four pilot dzongkhags of the above DANIDA-supported component are Chhukha, Trashigang, Zhemgang, and Samtse – the former three also being covered by SLMP. While the DANIDA-supported component will focus on EA at dzongkhag level, the focus of

61 SLMP will be on EA at geog and chiog levels where SLMP interventions are undertaken – thus complementing each other.

62 Figure 3: Flow Chart for Environmental Screening and Clearance Process

Initial Environmental Screening Chiog Level

Activity belongs to Activity does not belong to Activity does not belong to Geog negative list negative list but requires negative list and also does not SLMP environmental clearance require environmental clearance Team

Do not include in Prepare environmental the geog project information and submit to plan DEC

Is not likely to have Is however likely to any adverse have some adverse environmental environmental Entry into formal impact impact EA process DEC review the environmental information

Dzongkhag Include the activity Develop an Level in the geog project environmental plan impact mitigation If DEC is the If DEC is not the plan Competent Competent Authority for the Authority for the proposed activity proposed activity

Forward the environmental Forward the environmental information to the relevant information to the NECS if the Competent Authority as listed proposed activity is not listed in Annex 2 of RECOP in Annex 2 of RECOP

Relevant Competent NECS Central Authority Level

Issue environmental Deny environmental clearance clearance

Public disclosure of environmental Do not include Redesign the activity clearance and related the activity in the and resubmit documents geog project plan environmental information

Include the activity in the geog project plan

63 Figure 4: Flow Chart Illustrating EA Implementation Responsibilities

Review environmental information forwarded by the DEC and accordingly issue/ deny environmental clearance When environmental clearance is issued, provide clear terms and conditions to be followed and copy the clearance to PMU (and NECS, if issued by a competent Relevant Competent authority) for their information and record; NECS Authority When environmental clearance is denied, provide reasons for denial with copy to (Central Level) PMU and (and NECS, if denied by a competent authority); Conduct sporadic checks to ensure compliance of terms and conditions under which environmental clearance was issued Train DEC members, Geog SLMP Field Coordinators and Planning Teams.

If the environmental clearance application pertains to activities for which the DEC is the Competent Authority, review the environmental information and accordingly issue/ deny environmental clearance; When environmental clearance is issued, provide clear terms and conditions to be followed and copy the clearance to PMU and NECS for their information and record; When environmental clearance is denied, provide reasons for denial with copy to PMU and NECS for their Dzongkhag information and record; Environmental If environmental information is incomplete or unclear, ask the Geog SLMP Field Coordinator for missing Committee (DEC) information and/or clarification; If environmental clearance application pertains to activities for which DEC is not the Competent Authority, forward the environmental information to the central department or ministry assigned as the Competent Authority or to NECS in accordance with Annex 2 of the Regulation for the Environmental Clearance of Projects, 2002; Periodically monitor compliance of terms and conditions under which environmental clearance was issued

Ensure negative list activities are excluded; For activities not requiring environmental clearance, earmark them for inclusion in the geog project plan if the information in the environmental screening sheet (format 1) are complete and satisfactory; For activities requiring environmental clearance, review the environmental information (format 2) prepared by the chiog to ensure that it is complete and satisfactory for submission to the DEC. Where information is inadequate or unclear, ask the concerned chiog for missing information and/or clarification; For activities not requiring environmental clearance but, however, have some potential adverse environmental Geog SLMP Field impacts, review the environmental impact mitigation plan (format 3) and earmark the activities for inclusion Coordinator in the geog project plan if the mitigation plan is satisfactory; If necessary, conduct field verification; Coordinate with geog RNR extension agents for their technical assistance as necessary for implementation of environmental impact mitigation measures. Where technical assistance from geog RNR extension agents is inadequate, coordinate with Dzongkhag SLMP Committee/ PMU for technical assistance from dzongkhag/ regional/ central level; Keep track of the implementation of the environmental management framework at the geog level as a part of his/her overall project coordination and management responsibility at the geog level .

Carry out field investigation, prepare environmental screening sheet (format 1) and submit to the Geog SLMP Field Coordinator for review and verification; Exclude activities that belong to the negative list of activities; Chiogs For activities requiring environmental clearance, prepare environmental information (format 2) and submit to the Geog SLMP Field Coordinator for review and onward submission to the DEC; For activities not requiring environmental clearance but, however, having potential adverse environmental impacts, prepare environmental impact mitigation plan (format 3). Facilitation, technical oversight and guidance Facilitate and provide technical guidance to the chiogs in field investigation and preparation of environmental screening sheet, environmental information and environmental impact mitigation plan, as relevant; Geog SLMP Monitor the implementation of environmental impact mitigation measures on a regular basis; Planning Team Provide regular technical oversight and guidance to the chiogs in the implementation of environmental impact mitigation measures.

64 Annex 1: Literature Reviewed/ Referred to

Documents

BirdLife International (2003) Saving Asia’s Threatened Birds: A Guide for Government and Civil Society. Cambridge, UK.

LUPP (1997) Atlas of Bhutan: Land Cover and Area Statistics of 20 Dzongkhags. Land Use Planning Project, Ministry of Agriculture, Thimphu.

NSB (2004) Statistical Year Book of Bhutan 2003. Royal Government of Bhutan, Thimphu.

ICIMOD (2001) Inventory of Glaciers, Glacial Lakes and Glacial Lake Outburst Floods in Bhutan. International Center for Integrated Mountain Development (in cooperation with UNEP Regional Resource Center-Asia and the Pacific), Kathmandu.

MoA (1995) Forest and Nature Conservation Act of Bhutan, 1995. Ministry of Agriculture, Thimphu.

MoA (2000) Forest and Nature Conservation Rules of Bhutan, 2000. Ministry of Agriculture, Thimphu.

MoA (2000) Renewable Natural Resources Statistics 2000: Eastern Region. Ministry of Agriculture, Thimphu.

MoA (2000) Renewable Natural Resources Statistics 2000: East Central Region. Ministry of Agriculture, Thimphu.

MoA (2000) Renewable Natural Resources Statistics 2000: Western Region. Ministry of Agriculture, Thimphu.

MoA (2000) Pesticides Act of Bhutan 2000. Ministry of Agriculture, Thimphu.

MoA (2002) Renewable Natural Resources Sector Ninth Plan (2002-2007). Ministry of Agriculture, Thimphu.

MoA (2003) Facts and Figures of RNR Sector 2003. Policy and Planning Division, Ministry of Agriculture, Thimphu.

MoA (2003) Community Forestry Manual for Bhutan: Part I – Initiating Community Forestry. Working Draft June 2003, Social Forestry Division, Department of Forestry Services, Ministry of Agriculture, Thimphu

MoA (2003) Community Forestry Manual for Bhutan: Part II –Community Forest Management Planning. Working Draft June 2003, Social Forestry Division, Department of Forestry Services, Ministry of Agriculture, Thimphu

MoA (2003) Community Forestry Manual for Bhutan: Part III – Silvicultural Options for Community Forestry. Working Draft June 2003, Social Forestry Division, Department of Forestry Services, Ministry of Agriculture, Thimphu

65 MoA (2003) Community Forestry Manual for Bhutan: Part IV – Institutional Strengthening of Community Forestry Management Groups. Working Draft June 2003, Social Forestry Division, Department of Forestry Services, Ministry of Agriculture, Thimphu

MoA (2003) Private Forestry Manual for Bhutan. Social Forestry Division, Department of Forestry Services, Ministry of Agriculture, Thimphu

MoA (2004) Selected RNR Statistics 2003. Policy and Planning Division, Ministry of Agriculture, Thimphu

MHCA (2002) Dzongkhag Yargay Tshogdu Chathrim 2002. Ministry of Home Affairs, Thimphu.

MHCA (2002) Geog Yargay Tshogchhung Chathrim 2002. Ministry of Home Affairs, Thimphu.

MTI (1995) Mines and Minerals Management Act 1995. Ministry of Trade and Industry, Thimphu

NEC (2000) Environmental Assessment Act 2000. National Environment Commission, Thimphu.

NEC (2002) Regulations for the Environmental Clearance of Projects and the Strategic Environmental Assessment 2002. National Environment Commission, Thimphu.

Planning Commission Secretariat (2002) Nangkor Geog (Zhemgang Dzongkhag) Ninth Five Year Plan (2002-2007)

Planning Commission Secretariat (2002) Phuentsholing Geog (Chhukha Dzongkhag) Ninth Five Year Plan (2002-2007)

Planning Commission Secretariat (2002) Radhi Geog (Trashigang Dzongkhag) Ninth Five Year Plan (2002-2007)

RGoB (1998) Land Act of Bhutan 1979. Second Edition, Survey of Bhutan, Thimphu

RGoB (2000) Bhutan 2020: A vision for peace, prosperity and happiness. Bhutan’s Vision Document, Planning Commission, Thimphu.

RGoB (2002) Ninth Plan Main Document (2002-2007). Planning Commission, Royal Government of Bhutan, Thimphu.

SLMP-WG (2004) Stakeholder Analysis of Radhi and Nangkor Geogs for Bhutan Sustainable Land Management Project. Draft, June 2004.

SLMP-WG (2004) Stakeholder Analysis of Phuentsholing Geog for Bhutan Sustainable Land Management Project. Draft, June 2004.

World Bank/ SLMP-WG (2004) Bhutan Sustainable Land Management Project: Project Formulation Process and Outcomes (A Team Approach). Thimphu.

Websites www.dor.gov.bt - website of the Department of Roads, RGoB www.moa.gov.bt – website of the Ministry Agriculture, RGoB

66 www.mti.gov.bt – website of the Ministry of Trade and Industry, RGoB www.nec.gov.bt - website of the National Environment Commission Secretariat, RGoB www.pcs.gov.bt - website of the Department of Planning (formerly Planning Commission Secretariat), RGoB www.redlist.org – website of red list of threatened species of animals produced by the World Conservation Union www.worldbank.org – website of the World Bank

67 Annex 2: List of People Consulted

During Field Consultations

Radhi Geog, Trashigang (25 – 27 December 2004) Sl. Name Gender Village From No. vulnerable household Group Discussion 1. Dechen Dema Female Tangthrang No 2. Jigme Male Dekiling Yes 3. Kulung (Gup) Male Tangthrang No 4. Langmo Female Tongling No 5. Rinchen Wangdi (Geog clerk) Male Langten No 6. Tshewang Rinzin Male Khatey No Household Interviews 1. Lepo Male Khatey Yes 2. Ugen Male Khatey Yes 3. Yeshey Male Khatey Yes 4. Sonam Ongmo Female Khatey Yes 5. Karma Male Tongling Yes 6. Tshering Male Tongling Yes 7. Kunzang Female Langten Yes 8. Wangdi Male Langten Yes 9. Langmo Female Langten Yes 10. Yeshey Chewa Male Langten Yes 11. Karma Male Radhi Pangthang No 12. Tshajey Male Radhi Pangthang No Other People Met 1. Leki Dorji, Livestock Extension Agent, Radhi geog RNR Extension Center 2. Deki Wangmo, Agriculture Extension Agent, Radhi geog RNR Extension Center 3. Tashi, Forestry Extension Agent, Radhi geog RNR Extension Center 4. Gonpo Tenzin, Dzongkhag Planning Officer, Trashigang Dzongkhag

68 Nangkor Geog, Zhemgang (30 December 2004 – 1 January 2005) Sl. Name Gender Village From No. vulnerable household Group Discussion 1. Kinley Wangchuk (Gup) Male Buli No 2. Jimba Dema Female Buli No 3. Tshutim Lhamo Female Buli No 4. Kenchom Female Buli No 5. Nim Tshomo Female Buli No 6. Choki Female Buli No 7. Yeshi Lhamo Female Buli No 8. Sunde Gyethse (Buli tshogpa) Male Buli No 9. Rin Dorji Male Buli No 10. Sangay Dorji Male Buli No Household Interviews 1. Yeshi Choden Female Buli Yes 2. Dechen Female Buli Yes 3. Ugyen Lhazom Female Buli Yes 4. Lham Gyeltshen Male Buli Yes 5. Karma Ongmo Female Buli Yes 6. Tashi Chophel Male Tali No 7. Yeshi Yangzom Female Tali Yes 8. Tshering Lhamo Female Tali Yes 9. Lham Tshering Male Tali No 10. Lhendup Dorji Male Kyekhar No 11. Dorjila Male Kyekhar No 12. Chogay Gyeltshen Male Kyekhar Yes 13. Tshewang Dorji Male Kyekhar Yes 14. Tandin Tshewang Male Kyekhar Yes 15. Dorjimo Female Kyekhar No 16. Sonam Choden Female Kyekhar No Other People Met 1. Tara Pradhan, Livestock Extension Agent, Buli RNR Extension Center 2. Sangay Khandu, Agriculture Extension Agent, Buli RNR Extension Center 3. Pem Tshewang, Forestry Extension Agent, Buli RNR Extension Center 4. Dzongkhag Agriculture Officer and Planning Officer, Zhemgang Dzongkhag

69 Phuentsholing geog, Chhukha (17-18 January 2005) Sl. Name Gender Village From No. vulnerable household Group Discussion 1. Kul Bahadur Rai Male Ahalley No 2. Nar Bahadur Ghalley Male Toribari No 3. Chandra Man Rai Male Damdara No 4. Sumitra Rai Female Damdara No 5. Chandra Man Ghalley Male Chilauney No 6. Lal Bahadur Rai Male Ahalley No Household Interviews 1. Dhan Bahadur Rai Male Damdara No 2. Purnimaya Rai Female Damdara Yes 3. Santa Bahadur Rai Male Damdara Yes 4. Meena Kumari Rai Female Damdara Yes 5. Gaumaya Rai Female Damdara Yes 6. Damber Bahadur Ghalley Male Toribari No 7. Indra Maya Ghalley Female Toribari Yes 8. Dilmaya Sharma Female Toribari Yes 9. Ganga Bahadur Ghalley Male Toribari No 10. Arjun Kumar Ghalley Male Toribari No 11. Bagimaya Rai Female Ahalley Yes 12. Lokmaya Limbu Female Ahalley Yes 13. Karna Bahadur Rai Male Ahalley Yes 14. Hasta Bahadur Rai Male Ahalley Yes 15. Ram Bahadur Rai Male Ahalley Yes 16. Prem Bahadur Ghalley Male Ahalley No 17 Harka Bahadur Rai Male Ahalley No Other People Met 1. Rinchen Wangdi, Dungkhag Forestry Extension Officer 2. Om Prakash Ghalley, Dungkhag Agriculture Extension Officer 3. Dechen Wangmo, Dungkhag Agriculture Extension Officer

70 SLMP-Working Group Members

Sl. Name Organization No. 1. Chencho Norbu, Team Leader National Soil Service Center, MoA 2. Nidup Peljor Policy and Planning Division, MoA 3. Kado Tshering (left on transfer in Department of Forestry Services, MoA December 2004) 4. Karma Thinley (new member in Department of Forestry Services, MoA place of above) 5. Dr. Karma Tenzin Department of Livestock Services, MoA 6. B.N. Bhattarai Department of Agriculture Services, MoA 7. Dorji Tshering Department of Survey and Land Records, MoA 8. Thinley Namgyal (left on studies in National Environment Commission Secretariat January 2005) 9. Karma L. Rapten (new member in National Environment Commission Secretariat place of above) 10. Sangay Dorji Ministry of Trade and Industry 11. S.N. Rai Ministry of Works and Human Settlement 12. Peter Hansen RGoB/ Danida - Environment and Urban Sector Programme Support

71 Annex 3: Checklist of Guide Topics used for Field Consultations

Note: Field consultations for environmental and social assessments were combined

The following primary stakeholders will be consulted:

. Local communities, with particular attention to vulnerable households. Vulnerable households will be determined in terms of income, land holding, food security, number of dependents (e.g. young children, old parents, etc in a household), and woman-headed households due to death/ illness of husband or divorce.

. GYTs, who have direct authority and responsibility for planning and administration of development programmes at the geog level.

. Geog RNR extension agents, who have responsibility for providing extension service related to crop production, livestock production/ pasture management, and social forestry/ afforestation activities at the geog level.

The field consultations will focus on:

. Determination of vulnerable groups in the pilot project sites

. Perception and understanding of the project  Awareness about the project  Extent of support to the project  Extent of opposition to the project  Expected positive impacts (environmental, social) from the project  Potential negative impacts (environmental, social) from the project  Existing practices/ new ideas to mitigate the potentially negative impacts  Willingness and capacity to implement the mitigation measures

. Process of participation  General description of participatory planning process followed by the geog  Procedures and mechanisms followed for SLMP formulation  Key players involved in SLMP formulation  Inclusion of vulnerable groups, including any special measures employed to enhance participation of such groups

. Dispute resolution  Existing mechanisms (informal, formal) of dispute resolution, including redressal of grievances, as they relate to land acquisition, relocation, permanent/ temporary closure of certain resources (e.g. tsamdo from grazing or forest from fuelwood and fodder collection) impacting local livelihoods, etc  Effectiveness of the above mechanisms

. Role of GYT in ensuring and facilitating the implementation of the environmental and social management measures and of geog RNR extension agents in providing necessary

72 technical support. Also, views on how environmental and social screening of SLMP sub- project activities can be carried out at the geog level will be elicited.

. Status of implementation of various RGoB policies, laws, regulations and procedures at the geog/ dzongkhag level as they relate to WB safeguard policies triggered/ likely to be triggered by the project.

73 Annex 4: Initial Environmental Screening Sheet (Format 1)

1. Brief Description of the Activity:

2. Location:

3. Objectives of the Activity (in bullet points)

4. Environmental Setting of the Activity:

Protected Area

(a) Is the activity located inside a protected area?  Yes  No

(b) If yes, name the protected area: …………………………………………………..

Forest and other Natural Habitat

(a) Is the activity located inside a forest?  Yes  No

(b) Is the forest known to have any of the globally threatened and nationally protected species?  Yes  No

…………………………………………………………………………………………

(d) Is it located in any other natural habitat, e.g. marshland, grassland  Yes  No

(e) If yes, what type of natural habitat …………………………………..

(f) Is the natural habitat known to have any of the globally threatened and nationally protected species?  Yes  No

(g) If yes, name them …………………………………………………………………..

…………………………………………………………………………………………

Land Degradation

(a) Is the activity located in an area vulnerable to landslide/ erosion  Yes  No

74 Other Environmental Features:

(a) Distance from the nearest water source (in feet or meters): ………………….

(b) Slope of the site (in degree): Minimum: ………… Maximum: …………

Percentage of area above 45o slope: ……………

5. Pesticide Use:

(a) Will the activity involve any pesticide use?  Yes  No

(b) If yes, name the pesticides and identify those belonging to Class Ia, Ib or II as per WHO classification ……………………………………………………………………………

……………………………………………………………………………

…………………………………………………………………………… 6. Land Clearance:

(a) Will the activity involve land clearance or cutting of vegetation?  Yes  No

(b) If yes, give the total area that will be affected by the activity: …………

Prepared by

Chiog (Tshogpa to sign the sheet on behalf of the chiog)

Date: …………….. Place: ……………………..

Reviewed and verified by

Geog SLMP Field Coordinator

Date: …………….. Place: …………………….. N.B. 1. For information on protected areas, forests, other natural habitats and occurrence of globally threatened/ nationally protected species, consultation with local protected area office and territorial forest office will be critical in the initial stage. Information from local people can also be valuable in terms of knowing the occurrence of globally threatened/ nationally protected species in the surrounding forests/ other natural habitats. The list of globally threatened species found in Bhutan and nationally protected species is annexed with this sheet 2. For information on Class Ia, Ib and II pesticides as per WHO classification, the list of these pesticides is annexed with this sheet

75 Annex 5: Environmental Information for Environmental Clearance (Format 2)

Note: This has been adapted from the minimum contents of environmental information outlined in the Regulation for the Environmental Clearance of Projects 2002 (Chapter II Section 28.2)

1. Introduction (approx ½ page)

Briefly describe the proposed activity in terms of its objectives, size, location, duration, cost (including cost set aside for mitigation measures) and sub-activities involved

2. Environmental setting of the activity (approx ½ page)

Briefly describe land use, surrounding forest, natural habitat and biodiversity, topography, geology, hydrology (including water quality), cultural sites/ monuments. Also highlight unique environmental features, if any, for instance of the area/ region being a prime habitat for any globally threatened/ nationally protected species

3. Socio-economic setting of the activity (approx ½ page)

Briefly describe intended project beneficiaries and their livelihood practices. Also highlight unique socio-cultural features, if any, e.g. presence of distinct ethnic group.

4. Expected benefits from the proposed activity (approx ½ to 1 page)

Describe direct and indirect environmental and socio-economic benefits expected from the activity, including use of environment friendly technologies/ practices if appropriate

5. Potential adverse impacts and management measures (approx 1 to 3 pages)

In a table format, outline adequately all potential adverse environmental impacts (direct, indirect and cumulative) and measures that will be used to avoid, minimize or reduce the impacts. Include cost for mitigation measures.

Where relevant, mention the stages e.g. planning and design, construction, operational, for the mitigation measures. Also, where appropriate, indicate how the mitigation measures comply with relevant sectoral guidelines or codes of practice issued by the NECS or other government agencies. Also include cost for mitigation measures.

6. Implementation Arrangement (approx ½ to 1 page)

Identify who will be responsible for regular oversight, implementation and monitoring of the mitigation measures and provide implementation schedule.

7. Contact Details of Person/ Team who prepared the Environmental Information

Annexes: List of people consulted, map and field sketch(es), No objection certificate/ authorization from relevant agencies.

76 Annex 6: Environmental Impact Mitigation Plan (Format 3)

Brief Description:

Name of the Activity:

Location of the Activity:

Name of the Chiog Focal Point for the Activity:

Potential Mitigation Measures Implementation Responsible Approx Environmental Impact Time Frame Person Cost

77 Annex 7: List of Activities Assigned with Competent Authorities

Note: The following list is provided in Annex 2 of the Regulation for the Environmental Clearance of Projects 2002. The list is reviewed annually and updated, usually resulting in addition of more activities as the EA capacity and confidence of the Competent Authorities improve. This is the most recent list. Application for environmental clearance of activities that are not listed is required to be submitted to the National Environmental Commission Secretariat.

Competent Authority: Ministry of Trade and Industry

Department of Industry Automobile services Wooden/ steel furniture units Sawmills Printing Press Tyre rethreading activities Stone crushing activities Bakery/ confectionaries Oil mills Manufacturing of handmade paper Brick/ hollow-block manufacturing Fabrication activities Tiles production Poultry farms Carpet production using dyes Textile production using dyes Photo studios Dry cleaning units

Department of Trade Operation of fuel stations not involving land use changes

Department of Geology and Mines Quarrying/ mining, covering less than 3 hectares Mineral exploration Emergency responses to natural disasters/ hazards

Competent Authority: Ministry of Works and Human Settlements (previously Ministry of Communications)

National Authority for Construction Standards and Quality Control Road widening/ curve improvement Construction of urban roads Location of housing colony (temporary/ permanent)

78 Construction of urban drainage Permanent works (retaining walls, breast walls, causeways) Utilities and service lines Road realignment (less than 1 km and not falling within a protected area) River training works Monsoon damage restoration works Bridges

City Corporation Construction of buildings Any other activities within municipal boundary duly approved by the government

Competent Authority: Ministry of Agriculture

Department of Forestry Services Surface collection of sand and boulder Allocation of forest produces to rural communities outside FMUs Community forest harvesting Private forest harvesting Afforestation Reforestation Management and collection on non-wood forest produce All activities within an FMU (road construction, logging operations, reforestation) Forest sanitation operations

Department of Agriculture Irrigation channels Activities related to agricultural research and development

79 Annex 8: List of Activities not Requiring Environmental Clearance

Note: These activities have been listed as not requiring environmental clearance in Annex 2 of the Regulation for the Environmental Clearance of Projects

Consultancy firms Cinemas no involving land use change Barber shops Communication services (telephone, TV cable services, etc.) Umbrella repairs Seedling nurseries Carpet production without dyes Restaurants Hotels not involving land use change (taking into account waste disposal) Arts and handicrafts Electronic/ electrical repair services Tailoring Candle production Potato chip production Contracts Incense production Jari (Bhutanese tea leaves) production Noodle production Audiovisuals Cobbling Training institutes not involving land use changes Desktop publishing Photo studio without developing and printing facilities Indoor games Cycle repairs Beauty parlours Quilt making Clearing and forwarding agencies Health clubs Tours and travel services Discotheques Textile production without dyes Manufacture of organic fertilizers Road resurfacing Road maintenance Bioengineering Bridge maintenance not involving land use change

80 Road improvement (base course, black topping and permanent works) Construction of buildings (individual residential houses in rural areas) Goods and passenger transport Cottage mills Goldsmith and blacksmith units Laundry services Tyre and tube repair services Day care centre for children

81 Annex 9: List of Globally Threatened and Nationally Protected Species in Bhutan

Birds

Endangered Species White-bellied Heron Ardea insignis

Vulnerable Species Black-necked Crane Grus nigricollis* Rufous-necked Hornbill Aceros nipalensis* Chestnut-breasted Partridge Arborophila mandellii Himalayan Swiftlet Collocalia brevirostris Pallas’s Fish Eagle Haliaeetus leucoryphus Beautiful Nuthatch Sitta formosa Wood Snipe Gallingo nemoricola Blyth’s Tragopan Tragopan blythii Greater Spotted Eagle Aquila clanga

Near Threatened Species Satyr Tragopan Tragopan satyra Ward’s Trogon Harpactes wardi Ferruginous Pochard Aythya nyroca Yellow-rumped Honeyguide Indicator xanthonatus Great Hornbill Buceros bicornis

Mammals

Critically Endangered Species Pygmy hog Sus salvanius*

Endangered Species Golden Langur Trachypithecus geei* Capped Langur Trachypithecus pileatus Red Panda Ailurus fulgens* Tiger Panthera tigris* Asian Elephant Elephas maximus* Hispid Hare Caprolagus hispidus Snow Leopard Uncia uncia * Asian Buffalo Bubalus bubalis*

82 Vulnerable Species Assamese Macaque Macaca assamensis Himalayan Black Bear Ursus thibetanus* Serow Capricornis sumatraensis* Dhole/ Wild Dog Cuon alpinus Clouded Leopard Neofelis nebulosa* Gaur Bos frontalis* Sloth Bear Melursus ursinus Marbled Cat Pardofelis marmorata Asiatic Golden Cat Catopuma temmincki Fishing Cat Prionailurus viverrinus

Near Threatened Species Goral Naemorhedus goral Tibetan Blue Sheep Pseudois nayaur nayaur Musk Deer Moschus chrysogaster*

* These species are also listed in Schedule I of the Forest and Nature Conservation Act 1995 as Totally Protected Species

Bird and Mammal Species not Globally Threatened but Listed in Schedule I of Forest and Nature Conservation Act 1995 as Totally Protected Species because of their National Significance

Birds

Raven Corvus corax (National Bird) Peacock Pheasant Polyplectorn bicalcaratum Monal Pheasant Lophophorus impejenus

Mammals

Takin Budorcas taxicolor (National Animal) Pangolin Manis crassicaudata Spotted Deer Axis axis Leopard Panthera pardus Leopard Cat Felis bengalensis

83 Annex 10: Pesticides classified as Class Ia, Ib and II by WHO

Class Ia: Extremely hazardous technical grade active ingredients of pesticides

Common Name Physical State Main Use Aldicarb Solid Insecticide-applied to soil: not used with herbicides or plant growth regulators Brodifacoum Solid Rodenticide Bromadiolone Solid Rodenticide Bromethalin Solid Rodenticide Calcium cyanide Solid Fumigant Captafol Solid Fungicide, other than for seed treatment Chlorethoxyfos Liquid Insecticide Chlormephos Liquid Insecticide Chlorophacinone Solid Rodenticide Difenacoum Solid Rodenticide Difethialone Solid Rodenticide Diphacinone Solid Rodenticide Disulfoton Liquid Insecticide EPN Solid Insecticide Ethoprophos Liquid Insecticide-applied to soil: not used with herbicides or plant growth regulators Flocoumafen Solid Rodenticide Fonofos Liquid Insecticide-applied to soil: not used with herbicides or plant growth regulators Hexachlorobenzene Solid Fungicide, for seed treatment Mercuric chloride Solid Fungicide, for seed treatment Mevinphos Liquid Insecticide Parathion Liquid Insecticide Parathion-methyl Liquid Insecticide Phenylmercury acetate Solid Fungicide, for seed treatment Phorate Liquid Insecticide Phosphamidon Liquid Insecticide Sodium fluoroacetate Solid Rodenticide Sulfotep Liquid Insecticide Tebupirimfos Liquid Insecticide Terbufos Liquid Insecticide-applied to soil: not used

84 with herbicides or plant growth regulators

Class Ib: Highly hazardous technical grade active ingredients of pesticides

Common Name Physical State Main Use Acrolein Liquid Herbicide Allyl alcohol Liquid Herbicide Azinphos-ethyl Solid Insecticide Azinphos-methyl Solid Insecticide Blasticidin-S Solid Fungicide, other than for seed treatment Butocarboxim Liquid Insecticide Cadusafos Liquid Nematocide, insecticide Calcium arsenate Solid Insecticide Carbofuran Solid Insecticide Chlorfenvinphos Liquid Insecticide 3-Chloro- 1,2-propanediol Liquid Rodenticide Coumaphos Solid Acaricide, miticide Coumatetralyl Solid Rodenticide Zeta-cypermethrin Liquid Insecticide Demeton-S-methyl Liquid Insecticide Dichlorvos Liquid Insecticide Dicrotophos Liquid Insecticide Dinoterb Solid Herbicide DNOC Solid Insecticide-applied to soil: not used with herbicides or plant growth regulators/ Herbicide Edifenphos Liquid Fungicide Ethiofencarb Liquid Insecticide Famphur Solid Insecticide Fenamiphos Solid Insecticide Flucythrinate Liquid Insecticide Fluoroacetamide Solid Rodenticide Formetanate Solid Acaricide Furathiocarb Liquid Insecticide-applied to soil: not used with herbicides or plant growth regulators Heptenophos Liquid Insecticide Isazofos Liquid Insecticide-applied to soil: not used with herbicides or plant growth regulators Isofenphos Oil Insecticide

85 Isoxathion Liquid Insecticide Lead arsenate Solid Larvicide Mecarbam Oil Insecticide Mercuric oxide Solid Other use for plant pathogens Methamidophos Solid Insecticide Methidathion Liquid Insecticide Methiocarb Solid Insecticide Methomyl Solid Insecticide Monocrotophos Solid Insecticide Nicotine Liquid - Omethoate Liquid Insecticide Oxamyl Solid Insecticide Oxydemeton-methyl Liquid Insecticide Paris green Solid Larvicide Pentachlorophenol Solid Insecticide, fungicide, herbicide Pindone Solid Rodenticide Pirimiphos-ethyl Liquid Insecticide Propaphos Liquid Insecticide Propetamphos Liquid Insecticide Sodium arsenite Solid Rodenticide Sodium cyanide Solid Rodenticide Strychnine Solid Rodenticide Tefluthrin Solid Insecticide-applied to soil: not used with herbicides or plant growth regulators Thallium sulfate Solid Rodenticide Thiofanox Solid Insecticide-applied to soil: not used with herbicides or plant growth regulators Thiometon Oil Insecticide Triazophos Liquid Insecticide Vamidothion Liquid Insecticide Warfarin Solid Rodenticide Zinc phosphide Solid Rodenticide

Class II: Moderately hazardous technical grade active ingredients of pesticides

Common Name Physical State Main Use Alanycarb Solid Insecticide Anilofos Solid Herbicide Azaconazole Solid Fungicide Azocyclotin Solid Acaricide

86 Bendiocarb Solid Insecticide Benfuracarb Liquid Insecticide Bensulide Liquid Herbicide Bifenthrin Solid Insecticide Bilanafos Solid Herbicide Bioallethrin Liquid Insecticide Bromoxynil Solid Herbicide Bromuconazole Solid Fungicide Bronopol Solid Bacteriostat (soil) Butamifos Liquid Herbicide Butylamine Liquid Fungicide Carbaryl Solid Insecticide Carbosulfan Liquid Insecticide Cartap Solid Insecticide Chloralose Solid Rodenticide Chlordane Liquid Insecticide Chlorfenapyr Solid Insecticide, miticide Chlorphonium chloride Solid Plant growth regulator Chlorpyrifos Solid Insecticide Clomazone Liquid Insecticide Copper sulfate Solid Fungicide Cuprous oxide Solid Fungicide Cyanazine Solid Herbicide Cyanophos Liquid Insecticide Cyfluthrin Solid Insecticide Beta-cyfluthrin Solid Insecticide Cyhalothrin Oil Ixodicide (for tick control) Cypermethrin Liquid Insecticide Alpha-cypermethrin Solid Insecticide Cyphenothrin Liquid Insecticide 2,4-D Solid Herbicide DDT Solid Insecticide Deltamethrin Solid Insecticide Diazinon Liquid Insecticide Difenzoquat Solid Herbicide Dimethoate Solid Insecticide Dinobuton Solid Acaricide, fungicide Diquat Solid Herbicide Endosulfan Solid Insecticide Endothal-sodium Solid Herbicide EPTC Liquid Herbicide

87 Esfenvalerate Solid Insecticide Ethion Liquid Insecticide Etrimfos Liquid Insecticide Fenazaquin Solid Acarcicide Fenitrothion Liquid Insecticide Fenobucarb Solid Insecticide Fenpropidin Liquid Fungicide Fenpropathrin Solid Insecticide Fenthion Liquid Insecticide, larvicide Fentin acetate Solid Fungicide Fentin hydroxide Solid Fungicide Fenvalerate Liquid Insecticide Fipronil Solid Insecticide Fluxofenim Oil Herbicide Formothion Liquid Insecticide Fuberidazole Solid Fungicide Gamma-HCH Solid Insecticide Guazatine Solid Fungicide, for seed treatment Haloxyfop Solid Herbicide HCH Solid Insecticide Heptachlor Solid Insecticide Imazalil Solid Fungicide Imidacloprid Solid Insecticide Iminoctadine Solid Fungicide Ioxynil Solid Herbicide Ioxynil octanoate Solid Herbicide Isoprocarb Solid Insecticide Lambda-cyhalothrin Solid Insecticide Mercurous chloride Solid Fungicide Metaldehyde Solid Molluscicide Metam-sodium Solid Fungicide-applied to soil, not used with herbicides or plant growth regulators Methacrifos Liquid Insecticide Methasulfocarb Solid Fungicide Methyl isothicyanate Solid Fungicide-applied to soil, not used with herbicides or plant growth regulators Metolcarb Solid Insecticide Metribuzin Solid Herbicide Molinate Liquid Herbicide Nabam Solid Fungicide

88 Naled Liquid Insecticide Paraquat Solid Herbicide Pebulate Liquid Herbicide Permethrin Liquid Insecticide Phenthoate Liquid Insecticide Phosalone Solid Insecticide Phosmet Solid Insecticide, acaricide Phoxim Liquid Insecticide Piperpphos Oil Herbicide Pirimicarb Solid Aphicide Prallethrin Oil Insecticide Profenofos Liquid Insecticide Propiconazole Liquid Fungicide Propoxur Solid Insecticide Prosulfocarb Liquid Herbicide Prothiofos Liquid Insecticide Pyraclofos Liquid Insecticide Pyrazophos Solid Fungicide Pyrethrins Liquid Insecticide Pyroquilon Solid Fungicide Quinalphos Solid Insecticide Quizalofop-p-tefuryl Liquid Herbicide Rotenone Solid Insecticide Sodium flouride Solid Insecticide Sodium hexaflourosilicate Solid Larvicide-applied to soil: not used with herbicides or plant growth regulators Spiroxamine Liquid Fungicide Sulprofos Oil Insecticide TCA Solid - Terbumeton Solid Herbicide Tetraconazole Oil Fungicide Thiacloprid Solid Insecticide Thiobencarb Liquid Herbicide Thiocyclam Solid Insecticide Thiodicarb Solid Insecticide Triazamate Solid Aphicide Trichlorfon Solid Insecticide Tricyclazole Solid Fungicide Tridemorph Oil Fungicide Vernolate Liquid Herbicide

89 Xylylcarb Solid Insecticide

N.B. 1. The pesticides in italics refer to those that are in use in Bhutan, albeit in very limited quantities. 2. Physical state refers only to the active ingredient. Liquid includes solids with a melting point below 50oC; Oil denotes oily liquids; and solids include waxes. 3. In most cases, only a single main use is given. This is only for identification purposes and does not exclude other uses.

90 Annex 11: Pesticides Distribution in Bhutan 1998/99-2002/03

% of Common Name Toxicity Class 1998/99 1999/00 2000/01 2001/02 2002/03 Total Overall Use Insecticides Chlorpyrifos II 400.0 383.5 362.5 834.0 690.9 2,670.9 0.850 Cypermethrin II 439.5 325.5 388.0 488.5 595.3 2,236.8 0.712 Dimethoate II 406.5 179.0 256.9 113.5 318.6 1,274.5 0.405 Malathion 50 EC III 118.0 150.0 142.4 94.0 56.0 560.4 0.178 Malathion 5 D III 0.0 0.0 0.0 0.0 1,545.0 1,545.0 0.492 Fenvalerate 0.4 II 1,703.0 1,714.0 1,768.0 2,184.0 2,333.0 9,702.0 3.086 BT - 0.0 0.0 0.0 0.0 5.0 5.0 0.002 Fungicides Edifenphos Ib 0.0 13.0 1.0 0.0 0.0 14.0 0.004 Carbendazim No acute hazard 195.0 178.0 302.0 348.0 395.0 1,418.0 0.451 Captan No acute hazard 110.0 226.0 79.0 107.0 64.6 586.6 0.187 Hexaconazole No acute hazard 39.0 74.5 77.0 82.0 60.7 333.2 0.106 Mancozeb No acute hazard 432.0 500.0 687.5 957.0 1,012.0 3,588.5 1.142 Tridemorph II 0.0 20.5 17.0 24.9 23.4 85.8 0.027 Blasticidin Ib 0.0 9.5 27.0 0.0 0.0 36.5 0.012 Copper oxychloride III 177.0 268.0 250.3 222.0 316.0 1,233.3 0.392 Carboxin No acute hazard 0.0 0.0 100.0 100.0 0.0 200.0 0.064 Kasurabcide No acute hazard 0.0 0.0 10.0 0.0 0.0 10.0 0.003 Tricyclazole II 0.0 0.0 20.0 18.0 12.5 50.5 0.016 Copper sulphate II 0.0 0.0 0.0 0.0 5.5 5.5 0.002 Copper hydroxide III 0.0 0.0 0.0 0.0 5.5 5.5 0.002 Ridomil - 0.0 0.0 0.0 0.0 38.4 38.4 0.012 Rodenticides Bromadiolone Ia 42.0 0.0 0.0 0.0 0.0 42.0 0.013 Zinc phosphide Ib 0.0 35.2 31.0 70.5 56.4 193.1 0.061 Herbicides Pendimethalin III 0.0 0.0 0.0 301.0 301.0 0.096 Metribuzin II 204.0 250.0 320.0 380.0 510.0 1,664.0 0.529 Glyphosate No acute hazard 85.0 81.0 128.0 126.0 179.0 599.0 0.191 Oxyflourfen No acute hazard 0.0 0.0 1.0 0.0 0.0 1.0 0.000 Butachlor* No acute hazard 120,960.0 137,090.0 1,380.0 - - 259,430.0 82.532 Acaricides Dicofol III 0.0 6.2 5.3 2.0 17.0 30.5 0.010 Others Protein hydrolysate Non toxic 0.0 17.0 33.0 10.0 20.7 80.7 0.026 Tree spray oil Non toxic 0.0 0.0 8,011.0 8,516.0 8,676.0 25,203.0 8.018 Linseed oil Non toxic 0.0 0.0 0.0 234.0 236.0 470.0 0.150 Sandovit Non toxic 0.0 0.0 0.0 313.0 410.0 723.0 0.230

Total 125,311.0 141,520.9 14,397.9 15,525.4 17,582.5 314,337.7 100.000

Note: Ia: Extremely hazardous technical grade active ingredients of pesticides Ib: Highly hazardous technical grade active ingredients of pesticides II: Moderately hazardous technical grade active ingredients of pesticides III: Slightly hazardous technical grade active ingredients of pesticides No acute hazards: Technical grade active ingredients of pesticides unlikely to present any acute hazard in normal use

*Data not available for 2001/02 and 2002/03 as its distribution has been transferred to Druk Seeds Corporation (Paro) since 2001/02

91 Annex 12: Samples of IPM Extension Leaflets

SAMPLE 1 IPM Extension Leaflet No. 19/ 15 July 2001 Pest Organism: Bollworm Crop: Tomato, Chilli, Maize, Peas

The Pest Organism

The Bollworm Helicoverpa armigera (Hubner) belongs to the Noctuidae. Quite some confusion exists about its scientific and English names. The old name Heliothis armigera is still often used. The English name used to be American Bollworm, but the species does not occur in the Americas. Helicoverpa armigera is polyphagous as indicated by common nameslike cotton bollworm, corn earworm and (in Bhutan) chilli podborer. In Bhutan, the Bollworm can be troublesome in tomatoes, early chillies and chickpeas. It is a minor pest in crops like maize and other pulses.

Eggs are small (0.5 mm in diameter), yellowish and with longitudinal ridges. They are laid in small batches of single eggs on the leaves of flowering plants. Caterpillars vary in colour. The first two larval instars are yellowish-white to red-brown. Later instars are usually greenish, but sometimes brown to black. The pattern of longitudinal stripes is typical: especially the very pale, lateral band around the spiracles is characteristic . Larvae can reach 4 cm. Moths have a wingspan of up to 4 cm. The colour is variable, but usually brownish, males being more greenish-grey and females orange-brown. Forewings have a dark brown band abd a row of black spots near the hind margin. Hindwings are pale with a black border.

Life Cycle and Damage Symptoms

In the temperate regions of Bhutan female start oviposition in March. At night, presence of the moths near light forms a clear indication of potential oviposition activities. Females can lay more than 1000 eggs. The larvae hatch after three days and initially feed on leaves and flowers. While growing older, the caterpillars prefer to bore into fruiting bodies. In tomatoes and pulses the feeding habit is very characteristic: the front half of the body in the fruit, with the rear half sticking out. However, in chilli the caterpillar is completely hidden inside the pod. In fruits like tomato, the bore holes are characteristic. The larval stage takes 2-3 weeks. Pupation normally takes place in the soil, while the pupal stage lasts two weeks. In the temperate regions of Bhutan 2-3 generations occur, but in the south more generations are likely. In winter the pupae hibernate in the soil. The moths appear again in early March. Life span of the moth is three weeks.

In chillies, the bollworm attacks mainly the early planted chillies. The caterpillars go straight into the pod leaving no visible entry point. Feeding concentrates on the developing seeds and the seed-bearing parts. The pericarp is not attacked. Actual loss to the pod is limited, unless the consumer is keen on the hot seeds. The main problem is esthetic: consumers do not like caterpillars and unappetizing excreta in their chillies. In Bhutan up to 10% of the early chilly harvest can contain a caterpillar. Attacked tomatoes often drop prematurely and/or start rotting. Newly introduced chickpeas were heavily attacked in eastern Bhutan.

92 Control Measures

The bollworm is a major crop pest in large areas in Europe, Asia, Africa and Oceania. As such, an enormous amount of research on control methods has been carried out, focussing on major hosts like cotton and tobacco. However, given the mobility of the moths, high reproductive rate, polyphagy and resistance developed against many insecticides, H.armigera remains a difficult pest to control. A multi-pronged IPM approach is clearly the long term solution. The following components are of relevance in Bhutan.

Cultural Control. For many crops, post-harvest cultivation of the field is advised, to destroy the Bollworm pupae in the soil. A drawback to this method is immigration of moths, which, if borne by wind, can cover hundreds of kilometers. In tomato fields, tomatoes with caterpillars sticking out should be collected and destroyed. For chilli this is not possible as the caterpillars are hidden. Various trap crops have been advised to lure egglaying moths away from the main crop. Maize is used as trap crop for the main crop cotton, but timing is a problem as moths are only attracted to tasseling maize. Promising results were obtained in India with Marigolds (Dzongkha name Seyshey Metho, Nepali Shaipatri) as a trap crop in tomato cultivation. Marigolds are sown twice to ensure presence of marigold flowers during the whole susceptible period of the tomato crop. The trapcrop can be later destroyed or sprayed, depending on the number of caterpillars present.

Biological Control. As biopesticides, Bacillus thuringiensis and Helicoverpa armigera nuclear polyhedrosis virus (HaNPV) are often used for Bollworm control. Both products are available in India. However, the short shelf life of these products form a big disadvantage in Bhutan, while in addition, HaNPV is rapidly broken down by UV light. To protect the many natural enemies of the Bollworm, insecticide use should be reduced to the minimum. In India intercropping with Coriander is practiced to attract natural enemies of the Bollworm.

Host plant resistance. ICRISAT developed chickpea varieties with some resistance against Bollworm.

Chemical Control. Use of insecticides has four drawbacks. 1. Bollworn rapidly develop resistance, especially against pyrethroids. 2. Only young caterpillars are vulnerable as the older stages are protected by the flowers or fruits in which they are boring. 3. Indiscriminate spraying wipes out the natural control system. 4. Bollwom attack in the flowering stage, so for crops depending on crosspollination (like pulses), insecticides interfere with fruit setting.

Judicious use of pesticides depends on accurate timing of the vulnerable stage of the Bollworm. Scouting for eggs is one reliable method for determining the need for spraying. The second method consist of monitoring of moth with help of pheromone traps (available in India). Provided proper timing for the application is carried out. NPPC advise the use of Fenvalerate 4D dust (1.2 kg per acre) or Malathion 50 EC (2 ml/litre of water). Fenvalerate sometimes causes spotting in tomatoes. A waiting period of two weeks has to be observed after spraying before harvesting is allowed.

93 SAMPLE 2 IPM Extension Leaflet No. 37/ 15 July 2001 Pest Organism: Rice Blast Crop: Rice

The Pest Organism

In Bhutan, rice is grown in irrigated, terraced fields at altitudes ranging from 150-2600 metres. Farmers prefer traditional varieties for their grain colour, taste and yield of straw. The traditional rice categories are chum maap (red rice) and chum kaap (white rice). Worldwide , the most important disease of rice is Blast. This disease occur in all rice-growing areas. In Bhutan, an outbreak in 1995, led to a total loss of 1090 ton of paddy in Paro, Thimphu, Wangdue Phodrong and Punakha. Although the overall yield loss was 2.5 %, many farmers lost their whole crop. Blast is caused by a fungus which has sexual and asexual states. The sexual (teleomorphic) state is known as Magnaporthe grisea (Hebert) Baar, while asexual (anamorphic) state is named Pyricularia grisea (Cooke) Saccardo. The teleomorphic state is rare in nature, so that blast disease is spread almost exclusively by conidia (asexual spores) from the anamorphic state. Besides paddy, blast can attack various grasses like Echinochloa spp.

Disease Symptoms and Cycle

Blast can affect leaf blades, stem nodes, panicle and grains. Leaf Blast attacks especially between the seedling stage and tillering stage. Early leaf lesions are rounded, white to grey-green with darker green borders. Older lesions become spindle-shaped with grey centre and brown margin. In older or later leaves the disease declines. At heading, blast again increases, attacking nodes and panicles. Infected nodes start rotting and eventually the culm can break at the nod. Nodal Blast can also result in barren panicles (white heads). In early Neck Blast, lesions at the neck appear greyish-green and later turn black . Infected necks can rot and break. Early Neck Blast leads to chaffy grains, while late Neck Blast gives partly filled grains with kernels that are chalky, brittle and often useless. The pathogen survives as mycelium and conidia on the diseased rice straw, seed, stubble and possibly on weed hosts. The fungus produces conidia during periods of high relative humidity. Mature spores are released into the air, disseminated by the wind and then land on other rice plants. \the conidium only germinates when rice stems or leaves are wet. The spore penetrates plant surfaces or enters through stomata. At optimum temperature and high relative humidity, new lesions can appear in 4-5 days, but in colder parts of Bhutan it takes around ten days. Multiple rice cropping systems greatly increase the chance of blast outbreaks, but in Bhutan normally only single rice crops are grown.

Control Measures

Management of Rice Blast involves cultural, varietal and chemical measures.

Cultural Control  Use disease free seeds. Never use seeds from blast-infected field since the fungus can be transmitted through seeds.  Raise seedlings on a wet bed, as dry nurseries generally favour blast.  Do not apply too much manure or fertilizers as too much Nitrogen will increase the susceptibility of paddy to blast.  Avoid high density planting. Blast incidence increases with an increase in plant density .

94  Farmers in the same area should transplant at the same time.  Do not leave the fields dry after transplanting. Paddy is more resistant to blast when grown under proper water management.  Burn infected straw and stubble in the field.

Varietal Control Traditional varieties like Janam, Dumja and Themja are susceptible to blast. These traditional varieties can be grown in open and wide valleys where accumulation of moisture and dew is low. However, in blast-prone areas near rivers, near forest or in the shade, susceptible traditional varieties should not be used. In such places, resistant varieties like Chumroo, No.11 and IR64 should be cultivated.

Chemical Control Seed treatment in high risk areas for Blast, seeds can be treated with a fungicide as a preventive measure. The treatment for pre-germinated seed is:  Soak seeds in water for 24 hours (as practised by farmers)  Treat seed with a solution of Tricyclazole at a rate of 3 g product for 1 kg of seed.  Allow seed to germinate for 24-48 hours (as practised by farmers) before sowing.

Field spraying. Regular scouting, especially in blast prone areas, is essential in order to come to timely decision on the need for spraying. Leaf Blast can be controlled effectively by fungicides if detected at an early stage. However, spraying when plants are already infected by Nodal Blast or Neck/Panicle Blast is usually not effective. Modern fungicides are mainly systemic with a residual activity of two weeks. The need for follow-up sprays for leafblast control depends on monitoring of developments. The following Blast fungicides are available at NPPC:

Fungicide Trade name Action Dose Application Toxicity mode class

Blasticidin S 1 EC - Contact 1 ml/1litre of Foliar spray Ib water Edifenphos 50 EC Hinosan Contact 2 ml/1 litre of Foliar spray Ib water Isoprothiolane 40WP Fuji-one Systemic 1gm/1litre of Foliar spray III water

Kasugamycin 71.2 Kasurabcide Preventive 1 ml/1 litre of Foliar spray - WP curative water Probenazole 8GR Oryzemate Systemic 12 kg/acre Granules - Pyroquilon 5 GR Coratop systemic 12 kg/ acre Granules II Tricyclazole 75 WP - systemic 1 gm/1litre of Foliar spray II water

* Please note that five fungicides have a hazard classification following WHO. Special care should be taken in the case of Hinosan. The active ingredients of this organophosphorous product is paced in Class 1 B (highly hazardous). In combination with its concentration, Hinosan is the most toxic pesticide in the NPPC stock. Extension agents should ensure that farmers take all precautions while spraying. The large selection of blast fungicides is temporary and will be reduced later on.

95 Annex 13: Draft Terms of Reference of Dzongkhag Environmental Committee

Background

Section 22 of the Regulation for the Environmental Clearance of Projects, 2002 requires all agencies to establish an environmental unit responsible for reporting on implementation, enforcement and monitoring of the EA Act, 2000.

In line with the requirements under the EA Act, 2000 and its Regulation, the National Environment Commission Secretariat held two meetings with Dasho Dzongdags on 10 July 2001 and 12 July 2002 to discuss possibilities of designating Dzongkhags as Competent Authorities and setting-up Dzongkhag Environmental Committees, respectively.

As agreed in the second meeting with Dasho Dzongdags on 12th July 2002, and further discussed during the third meeting held on 4th August 2003, the National Environment Commission Secretariat proposes the following draft terms of reference for the Dzongkhag Environmental Committees.

Draft Terms of Reference for Dzongkhag Environmental Committees

1. Ensure that environmental concerns are fully incorporated into the Dzongkhag plans and programs while preparing Annual Plans or Five Year Plans (clarification with regard to term like environmental concerns) 2. Coordinate with Geogs and other sectors in forwarding applications for environmental clearance to the Competent Authorities or the NECS 3. Have copies of relevant Acts, Regulations, EA sectoral guidelines and Environmental Codes of Best Practices for reference or use by Gups and DYT Members 4. Review and assess project proposals/applications for adequacy of information that require environmental clearance 5. Liaise with the NECS on environmental matters 6. Conduct site visits to assess Environmental Assessment of proposed projects for according approvals for project sites 7. Ensure that the Dzongkhag Administrative approvals are accorded to the project proposals 8. Ensure that records of consultation with affected individuals/public are documented and attached with the application submitted/forwarded for environmental clearance 9. Ensure that all project proposals fulfill requirements under the EA Act, 2000 and its Regulation for Environmental Clearance of Projects, 2002 prior to submission to either designated Competent Authorities or the NECS for environmental clearances 10. Ensure that environmental terms and conditions as stated in the environmental clearances are implemented 11. Maintain records of all applications received, including details on actions taken 12. Report to the NECS as per section 15 of the Regulation for the Environmental Clearance of Projects, 2002 annually 13. Conduct compliance monitoring of all projects 14. Ensure that the EA Act, 2000 and the Regulation for the Environmental Clearance of Projects, 2002 are enforced and implemented 15. Attend relevant environmental trainings

96 16. Draft Rules of Procedures for Dzongkhag Environmental Committees accepted by all DEC members. The rule of procedure must be approved by the NEC. 17. Assess human and financial resources required for the effective and efficient functioning of the Dzongkhag Environmental Committees and take necessary actions

Recommendations

The NECS recommends that the Dzongkhag Environmental Committees be composed of Dzongkhag Planning Officers, Engineers and Agricultural Extension Officers and Foresters

The Chairperson for Dzongkhag Environmental Committees should be Dasho Dzongdags.