SUMMARY ENVIRONMENTAL IMPACT ASSESSMENT NORTHERN ECONOMIC CORRIDOR IN THE LAO PEOPLE’S DEMOCRATIC REPUBLIC August 2002 CURRENCY EQUIVALENTS (as of 18 July 2002) Currency Unit – Kip (KN) KN1.00 = $0.0000993 $1.00 = KN10,070 ABBREVIATIONS ADB – Asian Development Bank AP – affected person DOR – Department of Roads EIA – environmental impact assessment EIRR – economic internal rate of return EMP – Environment Management Plan HIV/AIDS – human immunodeficiency virus/acquired immune deficiency syndrome Lao PDR – Lao People’s Democratic Republic MAF – Ministry of Agriculture and Forestry MCTPC – Ministry of Communication, Transport, Post, and Construction NBCA – national biodiversity conservation area NPA – national protected area PRC – People’s Republic of China SEIA – summary environmental impact assessment STEA – Science, Technology and Environment Agency NOTE In this report, "$" refers to US dollars. CONTENTS Page MAP ii I. INTRODUCTION 1 II. DESCRIPTION OF THE PROJECT 2 A. Houayxay to Ban Nam Ngeun 2 B. Ban Nam Ngeun to the Louang Namtha Bypass 3 C. Southern End of Louang Namtha Bypass to Boten 3 III. DESCRIPTION OF THE ENVIRONMENT 4 A. Physical Resources 4 B. Ecological Resources 4 C. Human and Economic Development 5 D. Quality of Life Values 6 IV. ALTERNATIVES 7 V. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES 8 A. Soil Erosion 8 B. Loss of Vegetation and Habitat 9 C. Impacts on Wildlife 9 D. Impacts on Wildlife Through Increased Pressure from Illegal Trade 9 E. Overexploitation of Forest Resources Through Unsustainable Logging 9 F. Dust and Air Pollution 10 G. Noise 10 H. Loss of Agricultural Land 10 I. Encroachment on Irrigation Structures 11 J. Encroachment on Cultural Heritage Sites 11 K. Creation of Stagnant Water Bodies in Borrow Pits, Quarries, etc. 11 L. Creation of a New Pathway for Disease Vectors Affecting Humans 12 M. Creation of a New Pathway for Disease Vectors Affecting Animals and Plants 12 VI. SUMMARY RESETTLEMENT PLAN 12 VII. ECONOMIC ASSESSMENT 16 VIII. ENVIRONMENTAL MONITORING 18 IX. PUBLIC INVOLVEMENT 19 X. CONCLUSIONS 19 APPENDIXES 1. Summary Environmental Impacts, Mitigations, and Monitoring Plan 20 2. Summary Environmental Monitoring 23 I. INTRODUCTION 1. The Government of the Lao People’s Democratic Republic (Lao PDR) recognizes that regional cooperation can help narrow the gap between Lao PDR and other regional economies. To achieve this, the Lao PDR needs to strengthen its role as a land link at the center of the Greater Mekong Subregion. The existing road from Houayxay on the Mekong River to Boten on the border of the People’s Republic of China (PRC) is an important link road connecting Chiang Rai in Thailand to Kunming in the PRC. Improving the Houayxay-Boten link would create a safe, viable, continuous, all-weather overland route between Singapore and Beijing, since it is the only missing link. 2. The Project–upgrading the existing road to class II/III design standards1–is expected to contribute significantly to the achievement of the regional development objectives of the respective governments. The first step in developing an economic corridor is to remove major infrastructure constraints, and this Project is proposing to upgrade an existing road for that purpose. This summary environmental impact assessment (SEIA) covers the road investments, because that is the only component with possible adverse environmental impacts. Other components include building capacity at the provincial level to address environmental and social issues in road construction, and a social action plan to help minorities to benefit from the road. The Project will help to enhance the competitiveness of the region through better infrastructure linkages in terms of lower transport costs. By increasing the efficiency of moving goods and passengers, the Project will facilitate trade and transport among Lao PDR, Thailand, and Yunnan Province of the PRC. Once the physical linkages are created, the development of the surrounding rural and border areas will be supported by identifying employment and income- generating opportunities and promoting tourism in an environmentally and socially sustainable manner. 3. The governments of Thailand and PRC are proposing concessional loans to the Lao PDR so as to share in the costs of the Project with the Asian Development Bank (ADB). ADB will finance the civil works to upgrade about 70 kilometers (km) in the central section of the project road. The northern section of the project road, approximately 67 km, will be funded by the PRC government. The southern section of the project road, approximately 83 km starting from Houayxay and heading north, will be funded by the government of Thailand. The total length of the upgraded project road will be approximately 220 km. 4. The Project was classified as a category A project by ADB, and a detailed environmental impact assessment (EIA) was prepared. This SEIA covers the entire length of the project road and is based on the draft EIA, initial environmental examination, and resettlement and ethnic minorities development plans. This SEIA covers major direct impacts of the road upgrading, indirect impacts of opening up the area, and impacts beyond borders. 1 Class II roads are paved, two lanes, each of 3.75 meters (m) and two lanes, each of 3.5 m in mountainous terrain, whereas class III roads are paved, two lanes, each of 3.5 m except for the mountainous section, where the width of the two lanes is reduced to 3.0 m each. 2 II. DESCRIPTION OF THE PROJECT 5. The project road is an unpaved seasonal road, known as National Route 3 in the northern provinces of Louang Namtha and Bokeo, passing through the district of Houayxay in Bokeo province and the districts of Viangphoukha and Namtha in Louang Namtha province. To the southeast, both Bokeo and Louang Namtha are bordered by Oudomxai Province of the Lao PDR. 6. The existing roadway is approximately 258 kilometer long, passing through the rural provinces of Bokeo and Louang Namtha provinces. The planned roadway roughly follows the existing alignment northeast from the town of Houayxay to the village of Na Teui at kilometer 209. From Na Teui the roadway follows Route 13N north to the Lao PDR/PRC border at the village of Boten. Most of the present roadway is unpaved, and will be replaced with a two-lane asphalt road. Draft design standards vary depending on specific terrain features along the length of the road. 7. The paved carriageway will be 7 meters (m) wide with an asphalted shoulder of varying widths up to 2.5 m on each side of the road. Overall, the construction zone width will depend upon particular site needs for road benching and drainage. Roadway draft designs incorporate an initial impact corridor of up to 25 m in width for site clearance, although this width is reduced when it will have adverse environmental or social impacts. 8. Much of the existing alignment passes through rolling and mountainous terrain, where related earthworks will be needed. In several sections, proposed design standards are relaxed to eliminate excessive earthworks, avoid major realignments, or minimize the need for relocation of dwellings or environmental impacts. A. Houayxay to Ban Nam Ngeun (kilometers 0.0 – 106.4) 9. Upgrading the paved section of road up to kilometer 5.7 will involve improving the existing asphalt surface and drainage. From kilometer 5.7 to kilometer 106.4, Route 3 is currently being maintained by the Viangphoukha Coal Mine company for hauling lignite from a mine at Ban Nam Ngeun to a crossing on the Mekong River at Houayxay. Road improvement will involve asphalting, widening, improved drainage, and numerous short realignments. Both major and minor earthworks are planned. Three new concrete bridges will be built and an Typical Road Sections additional 10 existing bridges will be widened. Several of the more densely populated sections near Houayxay town will be built with a narrower “semiurban cross section” to minimize the need for relocation of dwellings. In several mountainous sections a reduced-width carriageway and road cross-section could be accommodated using the existing cut bench, minimizing the need for major earthworks. 3 B. Ban Nam Ngeun to the Louang Namtha Bypass (kilometers 106.4 - 172.7) 10. Upgrading this section of road will involve asphalting, widening, greatly improved drainage structures, and numerous short realignments. Both major and minor earthworks are planned. One new concrete bridge will be built to replace an existing Bailey bridge. A 500 m section through Viangphoukha town will be built with a narrower “semiurban cross section” to minimize the need for relocation of dwellings. A planned realignment through a hill between kilometers 121.6 and 122.9 will cut very close to the Kou Vieng ancient city wall and must be surveyed with great care to avoid encroachment on this valued cultural resource. About 7 km of road length to the northeast of Viangphoukha will be raised Passing through Nam Ha NBCA about 1 m to reduce the frequency and severity of flooding. In the Nam Ha National Protected Area (NPA), 2.2 km of roadway, defined as mountainous, is designed with a reduced-width cross- section to minimize the need for major earthworks. C. Southern End of Louang Namtha Bypass to Boten (kilometers 172.7 - 228.3) 11. Construction of the bypass will involve several kilometers of new alignment, as well as Route 13 N asphalting, road widening, improved drainage, and three new bridges. North of the bypass the asphalt and drainage structures will be improved, the road will be widened, five small concrete bridges will be replaced with box culverts, and one medium concrete bridge will be realigned. A number of small realignments are planned, requiring both minor and major earthworks. 12. A bypass is planned around Louang Namtha municipality, crossing the eastern end of its surrounding plain.