Initial Environmental Examination for Nam Pua Representative Subproject

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Initial Environmental Examination for Nam Pua Representative Subproject Sustainable Rural Infrastructure and Watershed Management Sector Project (RRP LAO 50236) Initial Environmental Examination for Nam Pua Representative Subproject Project Number: 50236-002 April 2019 Lao PDR: Sustainable Rural Infrastructure and Watershed Management Sector Project CURRENCY EQUIVALENTS (as 5 April 2019) Currency Unit – Kip (KN) KN1.00 = $0.000116 $1.00 = KN8,600 ABBREVIATIONS ADB : Asian Development Bank CCA : climate change adaptation CIFOR : Center for International Forestry Research COL : Concessional OCR lending DAFO : District Agriculture and Forestry Office DALAM : Department of Agricultural Land Management DDMCC : Department of Disaster Management and Climate Change DMF : Design and Monitoring Framework DRR : disaster risk reduction EIA : Environment Impact Assessment ERP : Emissions Reduction Program FAO : Food and Agriculture Organization (of the United Nations) GCF : Green Climate Fund GDP - Gross Domestic Product GIZ : Deutsche Gesellschaft für Internationale Zusammenarbeit (German International Cooperation Agency) GMS : Greater Mekong Subregion IEE : Initial Environment Examination IMT : irrigation management transfer IPM : Integrated pest management ISF : irrigation service fee IUCN : International Union for the Conservation of Nature IWMI : International Water Management Institute LDC : least developed country MAF : Ministry of Agriculture and Forestry MONRE : Ministry of Natural Resources and Environment NGO : Non-governmental Organisation NRI : Northern Rural Infrastructure Development Project NSEDP : National Socio-Economic Development Plan NTFP : non-timber forest product O&M : Operations & Maintenance OCR : Ordinary Capital Resources ODA : Overseas Development Assistance PAFO : Provincial Agriculture and Forestry Office PAM : Project Administration Manual PDR : People’s Democratic Republic (of Lao ) PGT : Project Governance Team PLUP : participatory land use planning PPIT : Provincial Project Implementation Team PONRE : Provincial Office of Natural Resources and Environment PRAP : Provincial REDD+ Action Plans PRC : People’s Republic of China PRI : productive rural infrastructure PRT : pesticide reduction training RRP : Report & Recommendations to the President RSP : representative subproject SME : Small-Medium Enterprises SRIWSM : Sustainable Rural Infrastructure and Watershed Management TRTA : Transaction Technical Assistance VDF : village development fund WUA : water users association WUG : water user group GLOSSARY Catchment In its totality a catchment is equivalent to a watershed, however a watershed may comprise of micro-catchments and sub-catchments. In this document a catchment refers to a subset of the larger watershed. Watershed A topographically delineated area from which rainwater drains as surface run-off via a river or stream to a common outlet point (e.g. a large river, lake or the sea). Watershed management Securing watershed functions in a sustainable manner. Broadly these functions include: ➢ Ecological function: availability of sufficient good quality water over time, space; erosion control, soil fertility, biodiversity, clean air, carbon sequestration; ➢ Economic function: sufficient natural resource products like food, fuel wood, timber, water, fish, energy required for basic needs of the local population; income generating opportunities; ➢ Social function: maintenance of social structures; protection and development of knowledge and lifestyle arrangements; maintenance and revitalisation of cultural identity and values, recreational facilities. NOTE(S) (i) In this report, “$” refers to US dollars unless otherwise stated. This initial environmental examination is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. Your attention is directed to the “terms of use” section on ADB’s website. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. CONTENTS Page I. INTRODUCTION 1 A. Overall Project Area and Scope 1 B. Location of the Nam Poua Subproject 3 C. Catchment description 6 D. Rationale for the Overall Project 6 II. DESCRIPTION OF THE SUBPROJECT COVERED BY THIS INITIAL ENVIRONMENTAL EVALUATION 8 A. Purpose of the Initial Environmental Evaluation 8 B. Subproject Rationale and Design 8 C. Subproject Design 14 D. Implementation Arrangements 14 E. Analysis of Alternatives 21 III. LEGAL AND POLICY FRAMEWORK OF THE IEE 22 A. Lao PDR Environmental Law and Policy 22 B. Categorization of the Nam Poua Subproject 25 C. Environmental Standards 25 IV. DESCRIPTION OF THE SUBPROJECT ENVIRONMENT 30 A. Topography and Geology 30 B. Climatic Conditions 35 C. Water Resources 40 D. Command Area Land Resources 42 E. Habitat, Ecology and Wildlife 44 F. Air Quality 46 G. Ambient Noise 46 H. Infrastructure 46 I. Climate Change Considerations 54 J. Environmental Impacts and their Mitigation 57 K. Consultation 75 L. Environmental Management and Monitoring 81 Reference Documents List of Appendixes Appendix 1. Records of Consultations Appendix 2. Photographs from Consultation and Field Visits I. INTRODUCTION A. Overall Project Area and Scope 1. The geographic scope of the Sustainable Rural Infrastructure and Watershed Management - Sector Project (SRIWSM) extends to the four provinces of Houaphan, Xieng Khouang, Louang Prabang and Xayaboury. The project will finance subprojects in three agreed districts in each province, see Table 1 and Figure 1. Table 1: Project Area Province District Houaphan 1. Nam Xeua 2. Vengxiay 3. Sop Bao Xieng Khouang 1. Peak 2. Khoan 3. Kham Louang 1. Nan Prabang 2. Nguen 3. Louang Prabang Xayaboury 1. Xayaboury 2. Phieng 3. Paklai 2 Figure 1: Agreed Project Provinces and Districts 2. The ADB SRIWSM project is part of a wider investment by Government into more sustainable intensification and diversification of the agriculture sector. The investment is being supported by parallel cofinancing from IFAD (for output 1 and output 3 - WUG support) and GIZ for output 2 (with the exception of Xieng Khuoang province). ADB will invest in the establishment of irrigation headworks, conveyance systems to the command areas, and water control structures within the command areas along with the provision of improved access. IFAD will support WUGs to intensify and diversify land use during the dry season. GIZ will invest in more sustainable land uses in the upper catchments with the SRIWSM catchments prioritized. For safeguards IFAD have committed to apply ADB safeguard policy whilst GIZ is applying the required WB safeguards from the emission reduction program into which GIZ is investing. 3. Within the IEE the parallel financed activities are considered as part of associated facilities (see ADB (2012) Environmental Safeguards – A Good Practice Sourcebook. Associated facilities are those “that are not funded as part of a project but whose viability and existence depend exclusively on the Project, or where goods and services are essential for successful operation of the Project.” The guidance for these facilities or linkages (see Para 68 bullet 2) states “Even though the impacts and mitigation measures from the development of associated facilities do not have to be analysed in detail in the EIA/IEE of the project financed by ADB, basic information about the main design features, their location, the significance of potential impacts, the required 3 approval process and institutional arrangements need to be outlined in the IEE. ADBs due diligence on the levels of impacts and risks to the environment will recognize the borrower/client’s control and influence over the associated investments. 4. The implication of this on the environment of the subproject catchments is intended to have a net positive impact. This is mainly because it will reduce the risk from dry season cropping of the irrigation command areas and the potential increased income leading to both intensification and diversification. This will reduce the pressure on land conversion for upland cropping. Such land conversion is identified as a major driver of forest loss as crops are grown on steep, bare ground subject to high rates of soil erosion in the wet season. 5. The risks associated with intensification relate to (i) increased use of agrichemicals and fertilizer, and (ii) increased demand for irrigation water during the dry season. 6. For this IEE the risks linked to the “associated facilities” are the risk of intensification of agricultural inputs for the production of high value crops. The IEE incorporates the requirements to address, where necessary, risks arising from inappropriate pesticide and herbicide use through the Government Pesticide Management Training programs and where warranted IPM training within the IFAD support program. Nutrient management will be incorporated into the IFAD WUG training, farm to farm extension and on-farm demonstrations. In the situation that the timing of IFAD cofinancing is delayed the Subproject costing includes ADB financing to ensure the provisions of the EMP are covered as well as the costs of the intensification of irrigated dry season cropping. 7. Further to the impacts of the intensification that fall under the associated facilities the IEE requires that the borrower/client will not use products that fall in World Health
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