Environmental and Social Monitoring Report January 2021 Lao PDR: Water Supply and Sanitation Sector Project (Additional Financing) Prepared by the Ministry of Public Works and Transport for the Asian Development Bank. CURRENCY EQUIVALENTS (as of 21 January 2021 Currency unit – kip (LAK) LAK1.00 = $0001073581 $1.00 = LAK9314.620 ABBREVIATIONS ADB – Asian Development Bank AHs – affected households APs – affected Persons D&B – Design and Build DONRE – Department of Natural Resources and Environment DMC – Detailed Monitoring Surveys EMMP – Environmental Management and Monitoring Plan GRM – Grievance Redress Mechanism HHs – households IEE – Initial Environmental Examination LACP – Land Acquisition and Compensation Report WTP – Water Treatment Plant This environmental and social monitoring report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. Your attention is directed to the “terms of use” section of this website. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. Integrated Safeguards Monitoring Report July – Dec, 2019 Rev 3 Lao People’s Democratic Republic Water Supply and Sanitation Sector Project Loan Number: L3041- LAO Grant Number: G0604 - LAO Executive Summary 1. The Water Supply and Sanitation Sector Project (WSSP) and Water Supply and Sanitation Sector Project – Additional Financing (WSSP-AF) of the Ministry of Public Works and Transport (Executing Agency) supports the development of small district towns through the improvement of water supply and sanitation services. Consistent with the Government’s urban water supply and sanitation sector policy and investment plan. The impact of WSSP and WSSP-AF will be expanded access to quality and reliable piped water supply and sanitation services for the urban population in the Lao PDR. The outcome will be improved performance of participating provincial nam papa (PNP) in delivering sustainable water supply and sanitation services. The Project adopts a sector approach following a prioritized list of subproject towns based on the water supply investment plan The Project will comprise of: (i) improvements to the water supply system and (ii) enhanced community action in urban water supply and sanitation. 2. The WSSP is implemented through a sector loan (L3041) from the Asian Development Bank (ADB) and WSSP-AF is financed by a grant (G0604) from ADB. The Ministry of Public Works and Transport (MPWT) and the Provincial Department of Public Works and Transport together with the PNPs or provincial water utilities (Implementing Agencies) will be responsible for identifying, prioritizing, appraising, selecting and approving subprojects in accordance with the Government and ADB’s policies and procedures. 3. The WSSP aims improving the water supply and sanitation situation of 9 subprojects in six provinces, while WSSP-AF consists of 6 subprojects in 4 provinces. Basic data of the subprojects is provided in Table 1 and Table 2 below. 4. Water supply development and rehabilitation will be carried out on existing PNP water supply systems and expand services to unserved communities in the most densely populated suburbs of provincial capitals and new systems constructed in district towns. The scope of works will cover the expansion, replacement and rehabilitation (if required) of: (a) water intakes from surface, spring or groundwater sources; (b) raw water transmission; (c) water treatment facilities; (d) distribution network; (e) service reservoirs; (f) individual metered service connections; and (g) improved office/workshop/store facilities for the PNP branch. 5. Village environmental improvements (VEI) will promote demand-driven, community- managed environmental improvements, such as construction or rehabilitation of small-scale community improvements (e.g., drains and village access roads). Core villages within a small town will be eligible to participate, including those that agree to implement, operate and maintain improvements; make a cash contribution towards the capital costs of the improvements; and select specific improvements in a participatory, socially inclusive and transparent manner. 6. New public sanitation facilities will be constructed or repaired in strategic areas where the O&M can be contracted to a nearby business or social entity. Where septage disposal facilities are not available in the subproject area, the project will provide technical assistance and grant funds for constructing septage disposal facilities at a suitable location on government land. 7. Construction water supply system and public latrines will be carried out under a civil works contract. Five contracts financed from WSSP are ongoing. Under WSSP-AF two contracts are being implemented and to new water supply and sanitation civil works contracts; Samakkhixay and Lamam subprojects were signed on 13 and 24 December 2019 respectively. 8. Implementation of village environmental improvements will be carried out under one civil works contract per province i.e. two subprojects in one package. The VEI works of Luang Namtha were completed in September 2019 and one new VEI contract for Xayabury and Botene subprojects was singed 30 December. 9. Summary of IEE and EMP Implementation. All subprojects being implemented are classified as Category B projects and the Initial Environmental Examination (IEE) reports and Environmental Management Plans (EMP) have been approved by ADB and disclosed on the ADB’s web page. 10. Updated IEE/EMP report for Dakcheung (WSSP) was approved by local authorities and published by ADB in August 2019. IEE/EMP for Sanamxay subproject was submitted for comments to ADB in October and revised IEE/EMP resubmitted in December 2019. 11. Based on the contractors’ progress reports and PIA Consultant’s observations there are no major environmental issues in the subprojects as the contractors are following most of the set requirements of the EMPs. However, construction supervisors have reminded the contractors to provide personal protection equipment and reminded workers to wear them. Also installation of safety warning signs at the construction sites were not always up to date. PIU has installed warning signs at construction sites as verified during a monitoring visit to the site between 16 and 19 October 2019. 12. No grievances on environmental issues or issues on occupational health and safety (OHS) or public safety have been reported, despite that contractors’ workers were not always wearing personal safety equipment. 13. IEE/EMP: Key Issues and Corrective Actions. The contractor of WS-CW-31 in Xayabury (WSSP-AF) has been reminded to improve waste management at the WTP construction site. The CSCs have reminded the contractors to provide and workers to wear personal protective equipment while working at the construction sites. 14. Summary of Social Safeguards Implementation. All subprojects being implemented are classified as Category B or Category C projects for involuntary resettlement. Preparation of Feasibility Study (FS) reports of two new subprojects in Luang Prabang (WSSP-AF) province started in January 2019. Site investigations and public consultations on social safeguards have been carried out in Nam Thouam and Vieng Kham subprojects and draft LACDDR finalized during the reporting period, however, submission of FS reports had to be delayed due to delays in finalization of financial and economic assessments. 15. No grievances on acquisition or compensation have been reported by PIUs. During the review mission in May 2019 ADB requested the PIU of New Namtha subproject to improve the Grievance Redress Mechanism (GRM) by maintaining records of all received complaints. PIU has taken actions and improved the reporting of complaints as verified during a monitoring visit to the site between 16 and 19 October 2019. 16. LACP: Key Issues and Corrective Actions. PCU has hired an Independent External Resettlement Monitor (IERM) to carry out monitoring and provide support to PIUs and advise Affected Persons in implementation of LACPs. The IERM carried out site visits to Xamneua and Sopbao subprojects in January 2019, however, the final monitoring reports are pending because the IERM has not yet revised the reports based on ADB’s comments. PCU is considering to replace the IERM due to poor performance. 17. During the reporting period there was no need to prepare corrective action plans the to approved LACPs. 18. Summary of Indigenous People Implementation. The subprojects are categorized as ‘Category B or C subprojects’, specific actions favorable to ethnic minorities are required and addressed through the provisions of the project design (WSSP and WSSP-AF) providing a free water connection to all households including ethnic minorities during construction and a sanitation grant to poor households to improve their toilets. The resettlement framework also has special entitlements for seriously affected households. 19. Grievance and Redress Mechanisms GRM committees have been established for all subprojects during the subproject preparation phase and are in place. Grievances related to reinstatement of concrete to the premises have been made in New Namtha and Xaiyabury subprojects (WSSP) which are being resolved by the contractors.