Initial Environmental Examination Document Status: Final Project Number: 47152 June 2016 Myanmar: Irrigated Agriculture Inclusive Development Project This initial environmental evaluation 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. 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 to the legal or other status of any territory or area. CURRENCY EQUIVALENTS (as of 1 September 2015) Currency unit – Myanmar Kyats Kyats 1.00 = US $0.0007855 US $1.00 = MMK 1,273 ABBREVIATIONS ADB – Asian Development Bank ADRA – Adventist Development and Relief Agency CDZ – Central Dry Zone DAP – Department of Agricultural Planning, MOALI DAR – Department of Agricultural Research, MOALI DOA – Department of Agriculture, MOALI EA – executing agency EARF – environmental assessment and review framework ECD – Environmental Conservation Department, under MOECAF EIA – environmental impact assessment EMP – environmental management plan GRC – Grievance Redress Committee GRM – Grievance Redress Mechanism IEE – initial environmental examination IA – implementing agency IAIDP – Irrigated Agriculture Inclusive Development Project IPSA – Initial Poverty and Social Analysis IWUMD – Irrigation and Water Utilization Management Department, MOALI LIEC – Loan Implementation Environmental Consultant LIFT – Livelihoods and Food Security Trust Fund LISC – Loan Implementation Social Consultant MOECAF – Ministry of Environmental Conservation and Forestry MOALI – Ministry of Agriculture, Livestock and Irrigation NECC – National Environmental Conservation Coordination Committee NGO – CCoCommitteenongovernment (NECCC)organization O&M – operation and maintenance PAM – project administration manual PAP – project affected person PPMS – project performance monitoring system PPTA – project preparation technical assistance REA – rapid environmental assessment checklist REGF – resettlement and ethnic group framework RRP – Report and Recommendation to the President (of ADB) SPS – Safeguard Policy Statement 2009 of ADB WRUD – Water Resources Utilization Department WUG – water user group VAO – Village Administration Office Figure 1: Irrigated Agriculture Inclusive Development – Location Map Figure 2: IAIDP Candidate Irrigation Schemes Figure 3: Map of Central Dry Zone Myanmar CONTENTS Page EXECUTIVE SUMMARY I. POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK AND STANDARDS 1 A. National Environment Policy and Legal Framework 1 B. Environmental Provisions in the 2008 Constitution 1 C. National Law on Environmental Management 1 D. Other Environmental Laws, Regulations and Rules 2 E. Environmental Assessment Requirements 5 II. DESCRIPTION OF THE PROJECT 9 A. Rationale and Justification of the Project 9 B. Project Impact, Outcome, and Outputs 12 C. IAIDP Infrastructure Component Details 13 D. Core Subproject Infrastructure Component Details 20 E. Project Area of Influence, Project Implementation Schedule 25 F. Project Management and Institutional Capacity Building 29 III. DESCRIPTION OF THE ENVIRONMENT 29 A. General 29 B. Physical Setting 30 C. Ecological Resources 38 D. Physical Cultural Resources 39 E. Socioeconomic Conditions 39 F. Environmental Quality Baseline 40 IV. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES 40 A. Positive Impacts and Environmental Benefits 40 B. Screening and Scoping of Potential Impacts – Irrigation Component 41 C. Measures During Project Design and Pre-Construction Phase 46 D. Environmental Impacts and Mitigation Measures during Construction – Irrigation Component 47 E. Environmental Impacts and Mitigation Measures during Operations – Irrigation Component 54 F. Climate Change and Vulnerability Assessment 55 V. ANALYSIS OF ALTERNATIVES 59 A. No-Action Alternative 59 B. Alternatives for Selection of Core Subprojects 59 C. Alternatives for Technology Alternatives 59 VI. INFORMATION DISCLOSURE, CONSULTATION AND PARTICIPATION 63 A. Legislative Framework for Public Consultation and Information Disclosure 63 B. Public Consultation 63 C. Future Information Disclosure and Public Consultation Program 64 VII. GRIEVANCE REDRESS MECHANISM 65 A. Introduction 65 B. Proposed Grievance Redress System 65 C. GRM Steps and Timeframe 66 VIII. CONCLUSIONS 70 A. Rationale and Benefits 70 B. Anticipated Environmental Impacts and Mitigation Measures 71 C. Risks and Assurances 72 D. Conclusion 73 ANNEX I – ENVIRONMENTAL MANAGEMENT PLAN 75 A. Objectives 75 B. Roles and Responsibilities 75 C. Summary of Environment Impacts Mitigation Plan 79 D. Environmental Monitoring and Inspection 93 E. Institutional Strengthening and Training 95 F. Environmental Reporting 97 G. Mechanisms for Feedback and Adjustment 98 H. Grievance Redress Mechanism 98 ANNEX 2 – SUMMARY OF CORE SUBPROJECT CONDITIONS 105 ANNEX 3 – AGENCY AND PUBLIC CONSULTATION PROGRAM 110 ANNEX 4 – RAPID ENVIRONMENTAL ASSESSMENT CHECKLISTS OF CORE SUBPROJECTS 141 ANNEX 5 – DRAFT ENVIRONMENTAL IMPACT ASSESSMENT PROCEDURES 146 ANNEX 6 – PHOTOGRAPHS AND EXAMPLES OF PROPOSED REHABILITATIONS 151 EXECUTIVE SUMMARY A. Introduction and Purpose 1. This Initial Environmental Examination (IEE) has been prepared for the proposed Irrigated Agriculture Inclusive Development Project (IAIDP). The Central Dry Zone (CDZ) is one of the most food insecure, water-stressed, climate sensitive and natural resource poor regions in Myanmar. It has the second highest population density in Myanmar but remains one of the least developed. Access and availability of water resources are key determinants of rural poverty with livelihoods largely dependent on the southwest monsoon. Seasonal water shortages caused by low and erratic annual rainfall patterns and sandy and fragile soils render rainfed agriculture a high risk endeavor. Under such uncertain climatic conditions, the provision of functional canal irrigation systems is critical to safeguarding crops and sustaining the livelihoods of farmers and farm workers. Many of these irrigation schemes in the CDZ were built before the 1980s and have operated for 30 years. These schemes need to be rehabilitated, redesigned and upgraded to meet changing demands and uses. 2. The project is aligned with the second five-year plan (2016-2017 to 2020-2021) for crop sector of the Ministry of Agriculture, Livestock and Irrigation (MOALI) focused on supplying agro-based industries and doubling farmer incomes. The plan has the following objectives: (i) extend production and use of good quality seeds; (ii) disseminate modern technology; (iii) upgrade vocational education; (iv) enhance research and development activities for sustainable agriculture; (v) encourage mechanized farming, climate smart agriculture, and extend water availability to increase productivity; (vi) change laws and regulations in line with current conditions; and (vii) encourage Public Private Partnerships and increase local and international investments in agriculture. 3. IAIDP is also guided by two existing strategies. The National Action Plan for Agriculture has eight priority areas: (i) agriculture production sector; (ii) livestock and fisheries sector; (iii) rural productivity and cottage industries; (iv) micro savings and credit enterprises; (v) rural cooperatives; (vi) rural socio-economy; (vii) rural renewable energy; and (viii) environmental conservation. The Rural Development Strategic Framework (March 2014) proposes integrated rural development strategies for poverty reduction to: (i) address inclusive and sustainable rural development; (ii) strengthen community based organizations, building capacity of local communities and nurturing good governance; and (iii) mitigate natural and social disasters and create resilient communities. 4. Despite the fact that the main infrastructure of irrigation works was completed many years ago, distribution canals and water courses to farmers’ field are still under construction or deteriorated. Renovation of the distribution canals of completed dams and reservoirs has also been delayed due to limitations of the maintenance budget. Extension and education activities in connection with efficient utilization of irrigation water to water users are also inefficient due to weakness of on-farm research and demonstration. There is great potential for expansion of irrigated areas (within existing perimeters) by improving efficiency in irrigation. 5. Table 1 of the Executive Summary (ES) presents a summary of the potential IAIDP infrastructure components evaluated by the project preparatory technical assistance (PPTA) team. Chaungmagyi in the Mandalay Division and Natmauk in the Magway Division were ultimately agreed as the IAIDP “core subprojects” for initial feasibility assessment, and they are the focus of this IEE. The remaining components will be placed in a project pipeline for future implementation, reviewed under the framework of the IAIDP Environmental Assessment and Review Framework (EARF), and other IEEs may be required for future subprojects. See Table ES 1, with core subprojects highlighted. Table ES 1: Component Projects Evaluated with Core Subprojects Region / System Storage Net Storage per Average Water Cropping State volume command unit Use (acre-ft.) Intensity (acre-ft.) area command (%) area (feet) (acre) avg dry avg dry year year Kayah Mobye 580,000 17,917 32.37 85 Kayah Ngwe