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 and Forestry MCTPC – Ministry of , , Post, and Construction NBCA – national conservation area NPA – national protected area PRC – People’s Republic of 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. 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 5 D. Quality of Life Values 6 IV. ALTERNATIVES 7

V. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES 8 A. 8 B. Loss of Vegetation and Habitat 9 C. Impacts on Wildlife 9 D. Impacts on Wildlife Through Increased Pressure from Illegal 9 E. Overexploitation of Forest Resources Through Unsustainable Logging 9 F. Dust and 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 . To achieve this, the Lao PDR needs to strengthen its role as a land link at the center of the Greater 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 to 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 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 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 Province of the PRC. Once the physical linkages are created, the development of the surrounding rural and border areas will be supported by identifying and income- generating opportunities and promoting 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 in the northern provinces of Louang Namtha and Bokeo, passing through the district of Houayxay in 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 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. The bypass will proceed on a northeast/southwest alignment for 8 km. For about one third of its length the road will follow a new alignment across cultivated land and scrub vegetation. The remainder of the alignment follows a small provincial gravel road. The bypass will rejoin the project road at the village of Bouamphiang.

13. Construction work for the improvement of the road is expected to start in late 2003 and will be completed by the end of 2006. The executing agency is the Ministry of Communication, Transport, Post, and Construction (MCTPC), Department of Roads (DOR). 4

III. DESCRIPTION OF THE ENVIRONMENT

A. Physical Resources

14. Eighty-five percent of the land area in the project provinces is mountainous. The road alignment passes through a wide range of terrain – from towns surrounded by broad, flat plains cultivated with wetland rice, through narrow valleys, across rolling hills, and mountain ridges. 15. Elevations range from about 300 m above sea level at the town of Houayxay to approximately 1,000 m at the border between Louang Namtha and Bokeo provinces. The entire project area is part of the Mekong watershed. The project road parallels rivers for most of its length, in some places following waterways very closely.

16. Soils vary from rich alluvial clays and loamy soils in the lowlands to reddish-brown laterite and podsols in the uplands. Rich lowland soils are in high demand and short supply in the project area. Upland soils tend to be low in fertility and easily eroded once they have been cleared of vegetation. Soils on which swidden agriculture is carried out need long fallow periods of 15-20 years to recover their fertility. Places where fallow periods have been shortened have experienced erosion and loss of soil fertility.

17. Annual weather patterns in the project area can be roughly divided into three seasons: (i) cool, dry season (November to February), (ii) hot, dry season (March to April), and (iii) rainy season (May to October). Temperatures vary from just below freezing at higher elevations in the cool, dry season to a high of 40 degrees Celsius in the lowlands in the hot, dry season. Yearly rainfall averages around 1,800-1,900 millimeters and is highly variable over time and space. In lowland areas along the roadway the water table is very shallow, in many places coming to the surface during the rainy season. This phenomenon is essential to the local because it allows for wetland rice cultivation in these areas.

18. The geology of the project area is mostly conglomerates of sandstones, siltstones, and shales, which are highly weathered and very crumbly. There are, however, more stable limestone and semibasalt cliff formations, especially in Viangphoukha District. Some of the semibasalt formations are suitable for quarrying stone to make gravel for road construction. The cliffs of limestone ridges are riddled with caves that support bats and other wildlife.

B. Ecological Resources

19. Aquatic resources in the project area are highly diverse and an important source of local subsistence and domestic trade. Rivers, streams, fishponds, and rice fields serve as aquatic habitats in this region. More than 200 species of fish constitute a significant portion of the protein in the average household diet of the project area. Other aquatic resources include crabs, shrimp, snails, frogs, eels, a nutritious river weed, and other edible animals and plants. Some terrestrial animal species such as deer, wild pigs, snakes, lizards, birds, and squirrels are commonly found in the project area.

20. Forest resources include timber and hundreds of nontimber forest products such as fruits, vegetables, herbal medicines, and wildlife, important to local people for subsistence and income. Forest cover is estimated at about 25-30% of the area. There are not enough foresters and resources to enforce the existing Forestry Law. For management of forested land, the provincial governments are trying to limit swidden agriculture, with mixed success. There is a 5 quota system to limit the timber harvest at the provincial level; however, the actual harvest often exceeds the quotas.

21. The Lao PDR's system of national biodiversity conservation areas (NBCAs) is relatively new, having been legally decreed only in 1993. The system covers 12-14% of the land area of the country in 20 separate areas. The system's design goal is to "provide effective protection to 5-20% of the original area of each habitat type within each biogeographic subunit." While the overall area under protection is large, all NBCAs are in reality multiple use areas. None are strict national parks or wilderness reserves as are found in some other countries. The project area includes several protected areas: Nam Ha NBCA is the largest. Others include Viangphoukha District's Phou Mot and Phou Pheung protected areas, Phou Chom Chouk District Protected Area in Houayxay District, and Nam Kan Protected Area in Bokeo Province.

22. Among all these protected areas, Nam Ha NBCA is the largest, and approximately 18 km of the project road will pass through it. Nam Ha East, part of Nam Ha NBCA to the southeast of the project road, was originally gazetted in 1993 as one of the first NPAs in the country. In 1999, large extensions were approved to Nam Ha NBCA recognizing the need for establishing contiguity. The Government extended the protected area boundaries to include a large area known as Ham Ha NPA in 1999. The entire Nam Ha NBCA covers 222,400 hectares (ha) and is contiguous with the Shiang Yong Protected Area in Xishuangpanna National in the PRC. The road has been in existence for decades, but these extensions have resulted in the road passing through the Nam Ha NBCA since 1999.

23. The Government of the Lao PDR has prioritized all NBCAs, assessing their biodiversity contribution to the NBCA system. The highest ranking NBCAs do not include Nam Ha NBCA, if the importance of Lao PDR NBCAs is considered exclusively in an international, context. If one were to rank that are most distinctive and limited globally, then the highest value sites would be the Annamite Mountain NBCAs and lowland evergreen forests.2

24. However, Nam Ha NBCA has high watershed values, ecotourism potential value, and wildlife habitat value. The Nam Ha NBCA is an important habitat to at least 37 mammals and 288 bird species, including a number of endangered and threatened species such as wild Asian elephants, tigers, and bears. Work is ongoing by the Wildlife Conservation Society to prepare an inventory of the habitat value of the Nam Ha NBCA. Under this work, NBCA will be categorized as a core conservation zone and management zone. About a quarter of the 18 km of road that passes through Nam Ha NBCA is located in paddy or swidden areas, the majority passing through or bordering forest. The area where the existing road passes does not have much importance in terms of biodiversity due to loss of land cover. It also does not pass through core conservation zone identified by the ongoing work by the Wildlife Conservation Society.

C. Human and Economic Development

25. Overall, the population of the two project provinces is estimated at 255,000. Most of the population is made up of ethnic minorities, equally divided between lowlanders, uplanders, and highlanders and actually, lowlander Lao are in minority. Most of the population lives in villages of about 100-1,000 people. There are also three towns along the project road, the provincial

2 Government of Lao PDR. 2001. Report on Review of the National Protected Area System in Lao PDR. , June. 6 capitals of Louang Namtha and Houayxay, and the district capital of Viangphoukha with populations varying between about 2,600 and 11,800.

26. Most of the people of northwestern Lao PDR are agriculturalists, with rice as the primary crop. Much of the agriculture is carried out as upland swidden, both because this is the tradition of local cultures and because of the shortage of fertile, irrigated lowlands. In addition to rice, the project area produces cotton, vegetables, corn, soybean, peanut, sugar cane, and livestock. Rubber and teak plantations are in the early stages of growth and not yet producing harvestable crops. Government and nongovernment organization technical assistance programs have attempted to introduce fruit tree plantations with limited success. Market access is a limiting factor to commercial fruit production.

27. Throughout the project provinces there are many small-scale cottage industries such as producing cotton and silk textiles and other handicrafts, processing agricultural goods and nontimber forest products, and making furniture and other household goods. There are currently few large-to-medium scale industries in the project area. Five quarries and stone-crushing factories for making gravel are located in Louang Namtha, and a few companies extract river sand and gravel from the Mekong in Bokeo. Low-grade lignite is mined in Viangphoukha District, and a company mines gems in Houayxay District. The lignite mining company exports about 250,000 tons of lignite to Thailand. Improvement of the project road is not expected to increase the production of lignite. The gem mining is not located in the project area. There are five sawmills in the vicinity of the project road, and several factories process nontimber forest products for export.

28. Infrastructure is relatively undeveloped in the project area. Only Houayxay town has uninterrupted electricity supply, transmitted from Thailand. Louang Namtha and Viangphoukha have public generators, providing electricity for limited hours in the evening, and a number of and government offices in Louang Namtha have their own private generators for round-the-clock use. Telephone service is limited to the three towns. The Internet has recently become available for public use in the provincial capitals.

29. Tourism is on the rise in these two provinces. There are 7 registered guesthouses in Houayxay and 13 in Louang Namtha, most catering to low-budget travelers (backpackers). Package tourism is also increasing, and there are a few accommodations suited to more upscale tourists. Ecotourism trekking and rafting have begun successfully in the Louang Namtha area, with potential for expansion, particularly in the area around Viangphoukha.

D. Quality of Life Values

30. Nearly 2% of country’s poor and about 17% of the Northern Region’s poor reside in these three districts. The overall incidence of poverty in the project area is 43.4%, which is significantly above the national incidence.3 Of the three project area districts, Houayxay District has the lowest level of poverty, at 30.4%; 44% of the population in Namtha and 90.3% of the inhabitants in Viangphoukha District are classified as poor. Rice shortages are common every year. The poor usually supplement their food with nontimber forest products for subsistence and sale.

3 The average poverty line (rural and urban) for the Lao PDR is estimated to be equal to KN19,184 per person per month (Lao Expenditure Consumption Survey II). 7

31. Public health facilities are few, and their resources are limited. There are hospitals in each of the three towns and clinics in a number of villages. Most villages have a village health volunteer, and some have a nurse. Hospitals are generally understaffed, and without many essential resources. Many people rely on herbal medicines from the forest. Levels of are relatively low in the project area, though there has been a marked increase in access to education in the past 5 years.

32. Both Louang Namtha and Houayxay towns have piped water systems, connected to most businesses and many homes. There is no piped water system in Viangphoukha town. Most of the villages along the road in Louang Namtha and Houayxay districts have piped water systems, usually provided with at least partial support from international aid agencies. Some town businesses and households have plumbing systems draining into septic tanks. Others have pit toilets. Villages vary in the percentage of homes with latrines.

33. The diverse ethnic cultures of the region and the natural surroundings are resources of both intrinsic value and potential tourism revenue. Local attractions include forests, waterfalls, and sites of cultural and archaeological interest such as earthen walls that surrounded the ancient city of Kou Vieng at Viangphoukha and the stone wall at Ban Tafa.

IV. ALTERNATIVES

34. The project road’s feasibility was examined in 1998 under an ADB regional technical assistance.4 Several alternatives were examined at that time with respect to the Lao PDR road design standards for class II, class III, and the combination of classes IV and V. The economic analysis undertaken at that time indicated that the highest economic internal rate of return (EIRR) was achieved with class II design standards. This option also resulted in a distance saving of 36 km. However, this saving was possible only if a new alignment was selected, opening up a new valley in Viangphoukha District.

35. These results were discussed at a meeting among the governments of Lao PDR, PRC, and Thailand and ADB, and a consensus was reached that opening up a new area would have large environmental and social impacts and therefore should be avoided. Further consensus was reached that the project road should follow the existing alignment to the maximum extent, thus avoiding damage to the environment in new and remote valleys, even if it meant a somewhat longer distance.

36. Once the feasibility analysis was under way, it was found that strict adherence to class II and class III design standards would require a large amount of earthwork in the mountainous and rolling terrain with detrimental effect on the environment. As a result, it was decided that the road would be upgraded to a combination of class II and class III standards so as to minimize earthwork in mountainous terrain, not only in the protected area, but also throughout the road. The maximum gradient allowed in the mountainous terrain will be limited to 8-12%, in rolling terrain from 6-8% and in flat terrain from 5-6%. This will affect the speed of vehicles, especially in the mountainous terrain. Integrating environmental considerations in the project design has resulted in lowering the overall project EIRR by about 2% and reducing the project net present value discounted at 12% by $16 million in foregone savings.

4 ADB. 1997. Technical Assistance for Chiang Rai–Kunming Road Improvement via Lao PDR. Manila. 8

37. Economic analysis was also carried out to examine the viability of a gravel road of classes IV and V with an investment of $18 million, but this option was not viable with a negative EIRR. Upgrading this road to class II/III standards would generate direct economic benefits in terms of toll revenue for the Lao PDR, with present value discounted at 12% of $26 million.

38. The feasibility of construction of two alternative roads so as to avoid the Nam Ha protected areas, to the south and north was examined. Since the Nam Ha protected area is contiguous to the Xishuangbanna Nature Reserve in the PRC, a new alignment road in the Lao PDR would imply the need to construct a new road in a similar reserve in the PRC. It was found that construction of new roads in new areas would have potentially large negative impacts on the environment and therefore were not considered environmentally feasible.

V. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES

39. The following paragraphs summarize the anticipated environmental impacts and their mitigation measures. Mitigation measures will be integrated within the project design by the design consultants, and will be part of the contractual arrangements with contractors, the executing agency, MCTPC, and other relevant parties. Implementation of the mitigation measures and the environmental conditions in the project area will be monitored by MCTPC, other ministries, and an independent monitoring agency as described further in Chapter VIII on Environmental Monitoring.

40. An inventory of the overall habitat value of Nam Ha NBCA and a rapid biodiversity assessment are being undertaken. Depending on the results of the inventory, further steps will be identified and reported to the Board.

A. Soil Erosion

41. The steep slopes of soils cut by road construction earthworks, bridgeworks, and borrow pits are easily eroded, and in some cases could become so unstable as to cause large land slips or landslides. A certain amount of accelerated erosion is inevitable when major earthworks are carried out and until soils have restabilized. However, properly implemented soil and slope stabilization can be incorporated into road improvement design to minimize soil erosion.

42. Improper soil disposal would also cause severe sediment impacts, particularly where the spoil is disposed of in steep areas, or where the spoil is not properly stabilized. Since much of existing road alignment is located close to rivers and steams, careless disposal of cut soil could result in negative impacts on the adjacent watercourses.

43. To avoid soil erosion, design consultants will be required to take such measures as to (i) design cut slopes to minimize instability; (ii) use adequate design, siting, and size of drainage structures; and (iii) identify suitable bench areas to receive spoil. The design will be reviewed by MCTPC to minimize adverse impacts.

44. Contractors will be required to take such measures as to (i) minimize major earthworks during the rainy season; (ii) dispose of spoil only on degraded or cleared land, former borrow pits, or quarries; and (iii) avoid disposal into gullies or watercourses. The construction site manager will monitor their measures everyday. MCTPC will monitor soil erosion every month. 9

B. Loss of Vegetation and Habitat

45. The project area is close to protected forests and extensive mixed deciduous forests. Since major realignments are not planned through forest areas and the project scope involves only improvement of the existing road, the necessity to cut trees along the project road is low. However, it is necessary to take measures to further minimize indirect impacts on vegetation and wildlife habitat in the project area.

46. This aspect will be integrated in the design of the Project by the design consultants so as to (i) limit activities in Nam Ha NBCA to the existing alignments, (ii) limit quarrying activity to a minimum of necessary sites, and (iii) avoid new quarries in Nam Ha NBCA. Contractors will be required to ensure not to cut any trees outside of the construction zone. This will be built into the contractual arrangements with the contractors and project supervision consultants. The relevant government offices will be responsible for monitoring this adequately.

C. Impacts on Wildlife

47. Construction activities and subsequent increase in traffic along the Project road could disrupt the migration route and habitat of wildlife species, especially in and around Nam Ha NBCA and other protected areas. It is necessary to take measures to minimize impacts on wildlife habitats and migratory routes.

48. To avoid these impacts, the design consultants will ensure (i) avoidance of damage to bank-supporting forest vegetation, (ii) securing migratory routes for small animals by allowing for slightly oversized culverts, (iii) avoidance of side road, and (iv) minimization of earthworks. Contractors will be required to take such measures as maintaining forest cover as close to the edge as possible on either side of the road. MCTPC will oversee the implementation of the mitigation measures. Special emphasis will be given to monitor the environmental conditions in Nam Ha NBCA and other protected areas.

D. Impacts on Wildlife Through Increased Pressure from Illegal Trade

49. Illegal wildlife trading in the project area has been reported, and it is possible that increased road traffic could result in an increase in this activity unless measures are taken by local government offices. Local officials generally cite lack of resources and limited staffing as the major constraints to the enforcement of wildlife laws. Since many illegally hunted wildlife are exported to other countries, efforts to control are also necessary.

50. To control illegal wildlife trading, measures will be taken to (i) strengthen enforcement by local forestry offices of existing wildlife regulations; (ii) build government capacity for enforcement of wildlife laws through training, resources, and staffing; (iii) improve border area control; and (iv) establish additional checkpoints at either end of the road segment of the project road passing through Nam Ha NBCA. The project design integrates support for the Government’s efforts in terms of training and capacity building as well as building necessary facilities for this purpose.

E. Overexploitation of Forest Resources Through Unsustainable Logging

51. Though the Government has been taking measures to achieve a sustainable forestry management program, such as the ban on swidden agriculture, and setting quotas for 10 commercial logging, overall logging remains above sustainable forestry practices. Though there is no direct link between levels of logging and road construction, in order to avoid the overexploitation of forest resources, the Government will take all necessary measures to protect the forest resources in close cooperation with ADB during the project implementation.

52. During construction, it is proposed that MCTPC closely monitor tree cutting required for road widening and realignment in consultation with the Ministry of Agriculture and Forestry. The project design includes (i) training and support for government staff, (ii) setting up three forestry checkpoints along the road, and (iii) raising local awareness to strengthen village capacity for monitoring of forest resources management.

F. Dust and Air Pollution

53. Dust will be reduced significantly after the completion of the road improvement. However, dust may be stirred up by road construction equipment, and could have a significant impact during the same phase. Emission of air pollutants from construction vehicles could also be significant during the same phase.

54. To minimize dust and air pollution, contractors will be required to water construction areas every day during the hot, dry season and to maintain all construction vehicles to avoid emissions of air pollutant. MCTPC will oversee the implementation of the measures.

G. Noise

55. Noise pollution can have impacts on human health, including damage to hearing and increased stress. Operation of heavy equipment and the blasting associated with road construction and quarrying activities will create some temporary noise. During operations, increased traffic volumes and other activities associated with the improved road will also affect the people and villages along the road. Noise may also have negative impacts on wildlife.

56. To minimize noise during construction, contractors will be required (i) to use well- maintained mufflers in all vehicles, (ii) to avoid working at night near settled areas and in Nam Ha NBCA and other protected areas, and (iii) not to disrupt important social and cultural events by blasting activities. MCTPC will monitor the implementation of the measures. The road safety signs on the road during operations will propose a silence zone (no horn) in Nam Ha NBCA.

H. Loss of Agricultural Land

57. As shown in Chapter IX on Public Involvement, one of the main concerns of the inhabitants is loss of agricultural land. To minimize the loss of agricultural land, it is necessary to minimize realignment through agricultural land and not to site borrow pits or dispose of cut spoil on agricultural land.

58. During the feasibility study, a resettlement plan was prepared for an appropriate corridor within the project road right-of-way. The agricultural land to be acquired will be compensated in accordance with the resettlement plan.

59. To minimize loss of agricultural land, the design consultants will be required to minimize realignment through agricultural land and not to site borrow pits on agricultural land, and the contractors will be prohibited from disposing cut spoil on agricultural land. 11

I. Encroachment on Irrigation Structures

60. Road widening and realignment may affect existing irrigation systems and planned sites for irrigation. In most cases, where there are existing irrigation systems, these will be obvious to roadway designers, and it will be possible to replace culverts or make repairs to irrigation systems as necessary. Some smaller, handmade irrigation systems may not be obvious, and more care will need to be taken not to disrupt them and to make repairs where necessary. In addition, both Bokeo and Louang Namtha provincial officials informed the EIA team of planned irrigation systems, which would require the installation of culverts in certain places along the roadway. If these places are blocked by the roadworks, irrigation system installation would necessitate digging up the road again in a year or two, at great expense. Therefore, where possible, culverts should be integrated into road design in places where irrigation systems are planned.

61. The proposed mitigation measures include (i) use of appropriate drainage structures to replace those presently used in irrigation systems; (ii) where construction activities unavoidably encroach on irrigation systems, such systems must be restored to effective operation using ditching, soil berms, gabion weirs, and/or other appropriate methods; and (iii) communicate and cooperate with appropriate authorities and villagers to identify areas of possible impact. MCTPC will monitor the condition of irrigation systems along the road every month.

J. Encroachment on Cultural Heritage Sites

62. The present road passes very close to the ancient Kou Vieng earthen wall site at Viangphoukha. The stone wall at Ban Tafa is also located close to the road. Near the road, care will be taken with road construction equipment and digging activities for drainage.

63. It is possible that previously unidentified sites of archaeological or cultural interest may be found during road construction. Impacts on such sites or their artifacts could result in irretrievable loss and damage to cultural resources. Any cultural heritage items found during the course of road upgrading will be immediately reported to the Ministry of Culture and Information.

64. Design consultants will be required to take measures to avoid realignment in the area of the earthen wall at Viangphoukha and the stone wall at Ban Tafa. MCTPC will review the design in consultation with Ministry of Culture and Information. Contractors will be required to operate carefully to avoid damage to the cultural heritage sites. The construction site manager will monitor the site every month.

K. Creation of Stagnant Water Bodies in Borrow Pits, Quarries, etc.

65. Borrow pits and quarries left after construction can become a place where stagnant pools of water breed mosquitoes and other disease vectors. Road improvements, including sealing and provision of drainage structures, will result in a net decrease in stagnant water bodies along the project road if mitigation measures are properly implemented.

66. To minimize the impacts, the design consultant will be required to incorporate adequate drainage, and the contractor will be required to take measures such as (i) incorporation of adequate drainage and fill in borrow pits and quarries, and (ii) use of old borrow pits as cut spoil depositories. MCTPC will oversee the implementation of the measures. 12

L. Creation of a New Pathway for Disease Vectors Affecting Humans

67. An influx of workers during the construction phase, and of traffic during operation, will bring the local population into contact with a larger number of outsiders. Foreign workers, traders, and tourists could infect local people with dangerous viruses, such as HIV/AIDS,5 and outsiders themselves will be exposed to local virulent diseases such as malaria and dengue fever. The average awareness level and understanding of the people in the project area about HIV/AIDS and its prevention is very low. 68. Under these circumstances, the design consultants will be required to take measures such as siting labor camps away from local communities and rivers, and contractors will be required to take measures such as (i) providing decent , water supply, and human and solid waste management; (ii) making medical treatment available for workers; and (iii) incorporating HIV/AIDS prevention education for workers and local communities. MCTPC will oversee the implementation of the measures in cooperation with the Ministry of Health and its local offices.

M. Creation of a New Pathway for Disease Vectors Affecting Animals and Plants

69. Increased traffic and trade along an improved road is likely to include transport of livestock and plants. There is also concern that domestic animal diseases could infect wildlife populations as well. Increased exposure to new disease vectors may be partly offset by improved access for a livestock vaccination program. An influx of new plant materials could infect local species with exogenous plant diseases. The Ministry of Agriculture and Forestry will strengthen monitoring of animal and plant trade with the establishment of border checkpoints.

VI. SUMMARY RESETTLEMENT PLAN

70. Scope of the Resettlement Plan. As part of the Project’s preparation, a detailed social analysis was carried out along the entire project road. A census and inventory of lost assets was undertaken for all households potentially affected by loss of homestead land and dwellings within a 14 m wide corridor of impact in towns and villages and within a 20 m corridor of impact in rural areas. Based on the information collected, a Resettlement Plan was prepared for the Project in compliance with ADB’s Policy on Involuntary Resettlement (1995) and the Handbook on Resettlement: A Guide to Good Practice, 1998.

71. Scope of Land Acquisition and Resettlement. The Project will require land acquisition of 122 ha of mainly rice land, affecting 2,550 people in 502 families. This will include 543 dwellings on 1.7 ha of land, 61 small retail shops, and 133 rice storage bins, all of which will need to be relocated. Also affected will be gardens, fishponds, and plantations. There will also be some temporary impact on land during construction and disruption to irrigation systems, which will be restored. The exact alignment will be determined during detailed design, following which the Resettlement Plan will be revised to cover the actually affected land and households.

72. Policy Framework and Entitlements. The policy framework and entitlements have built upon the laws of the Lao PDR, principally the Constitution (1991); the Land Law (1997); the draft National Policy for All Projects in Lao PDR, which will be the basis for a ministerial decree being drafted under ADB’s environment and social program loan; ADB’s Policy on Involuntary

5 Human immunodeficiency virus/acquired immune deficiency syndrome. 13

Resettlement (1995); and government-approved resettlement plans for other ADB and World Bank projects. Provisions and principles adopted in the Resettlement Plan for the project supersede the provisions of relevant decrees currently in force in the Lao PDR wherever a gap exists.

73. Project Principles. The following basic principles have been adopted for the Project:

(i) Acquisition of land and other assets, and resettlement of people will be minimized as much as possible.

(ii) All affected persons (APs) will be identified in the project-impacted areas as of a yet-to-be-determined cutoff date, and will be covered under the resettlement measures sufficient to assist them to at least maintain their preproject living standards, income earning capacity, and production levels.

(iii) APs will not be required to have formal legal title to the land used by them to be eligible for compensation and rehabilitation measures.

(iv) APs will be provided full replacement costs so as to enable them to have a house or a structure of the same size and standard; agricultural land for land of equal productive capacity acceptable to the AP; replacement of residential and commercial land of equal size acceptable to the AP; and transfer and subsistence allowances during the transition period, while people are dismantling and rebuilding their structures and reestablishing their productive incomes.

(v) Replacement residential and agricultural land will be as close as possible to the land that was lost, and acceptable to the AP. Where there is not sufficient replacement rice land available in villages, the Project will assist the villages to develop new rice land. The Project will also assist villages to prepare level residential land and sites for livestock and fishponds.

(vi) Temporarily affected land and communal infrastructure will be restored to preproject conditions.

(vii) MCTPC will see to it that institutional arrangements are in place to ensure effective and timely design, planning, consultation, and implementation of the land acquisition, compensation, resettlement, and rehabilitation program.

(viii) Existing cultural and religious practices will be respected and, to the maximum extent practical, preserved.

(ix) Special measures have been incorporated in the Resettlement Plan and complementary Social Action Plan to protect socially and economically vulnerable groups such as ethnic minority peoples, female-headed families, children and elderly people without support structures, and people living in extreme poverty.

(x) There will be effective mechanisms for hearing and resolving grievances during the implementation of the Resettlement Plan. 14

74. Entitlement Matrix. The Project entitlements have been designed to provide compensation, resettlement, and rehabilitation for lost assets and to restore the livelihoods of all categories of APs. The entitlement matrix for the Project (Table 1) summarizes the main types of losses and the support entitled for each type of loss. Lao PDR standards for the compensation of affected buildings, set forth in a statement from the Prime Minister’s office dated 26 March 1998, which provides depreciation schedules for calculating residual values of structures, will be updated to reflect current compensation unit rates for all categories of loss prior to appraisal.

75. Ethnic Minorities and Disadvantaged Groups. The social analysis shows that the majority of households along the project road belong to ethnic minority groups. An Ethnic Minority Development Plan framework has been prepared as part of the Social Action Plan prepared for the Project. The detailed design of the Ethnic Minority Development Plan will be made through a participatory process during project implementation. Special attention will be given to identifying and addressing the special needs of the ethnic minority communities plus other disadvantaged groups such as the landless, poor, female-headed households, and the elderly.

Table 1: Summary Entitlement Matrix Type of Loss Entitled persons Compensation Dwellings Registered taxpayer or Full replacement cost so as to enable affected persons to occupant identified during have a dwelling of the same size and standard. survey Residential land Registered taxpayer or Replacement land as a priority or sufficient cash at full occupant identified during replacement cost at current market value. survey Expenses of residential Registered taxpayer or Lump sum payment sufficient to cover all relocation costs relocation occupant identified during survey Rice storage bins Owner identified during Lump sum payment sufficient to cover all relocation costs survey Small retail shops Owner identified during Lump sum payment sufficient to cover all relocation costs survey Agricultural land Owner or person with use Replacement land of comparable yield rights identified during survey Crops and trees Owner or person with Full compensation of anticipated harvest at market value customary use rights Common property Community losing the (a) Restoration of affected community buildings and resources resources structures to at least previous condition; (b) Replacement in areas identified in consultation with affected communities and relevant authorities (c) Full compensation for loss of income. Temporary impact Owner or person with use (a) Extreme care by contractors to avoid damaging during construction rights identified during property. survey (b) Where damage does occur, the contractor will be required to pay compensation immediately to affected families, groups, communities, or government agencies. (c) Damaged property will be restored immediately to its former condition. Source: Draft Resettlement Plan.

76. Resettlement Strategy. Land acquisition impacts and rehabilitation measures have been assessed at the individual and community level. During the detailed design, every effort will be made to reduce the need for relocation. Most households will be assisted to move back 15 from the road. Some villages are built on narrow ridges immediately adjacent to the road and will have to move, probably down into the valley immediately below where the village already has land and water supply. For households that have to move, the Project will assist communities and households by leveling new land for houseplots and livestock pens, providing fencing for livestock and vegetable gardens, and providing guidance on village planning, as well as expanding rice land and establishing fishponds. Households and villages will be assisted in fencing the roadsides to prevent children and livestock from wandering onto the road. The Project will also provide an improved multipurpose water supply where needed, on a priority basis, following a village needs assessment. Relocating households will be assisted with house dismantling and rebuilding.

77. Income Rehabilitation. Farmers’ lost land will be replaced with other land of equal productivity. As there is a shortage of rice land in the villages along the road, but sufficient other land is available, the Project will assist villages to prepare rice land. In consultation with the villages, the Project will dig fish ponds at appropriate locations in villages along the road. Affected small businesses will be assisted to move back from the road and still carry out their businesses with better income potential because of the increased road traffic. In addition, all villages will benefit from the Social Action Plan activities, which will include training in literacy, numeracy, small and marketing skills, and agricultural extension services.

78. Participation in Resettlement Planning, Implementation, and Grievance Mechanism. There was an extensive consultative process during the resettlement planning period of the feasibility study. Resettlement planning and implementation will follow a participatory approach using facilitators to mobilize the affected communities to participate in alignment selection, inventory of losses, validation of compensation rates and entitlements, delivery of entitlements, design and delivery of the Social Action Plan, monitoring of impacts and benefits, and design and participation in a grievance mechanism. A participation strategy is being prepared. Key information in the Resettlement Plan will be disclosed to the affected communities in a form and language that they can access. The project will set up three district level information centers where communities can get additional information on the resettlement issues. The cost of these centers is included in the project costs.

79. Institutional Arrangements. At the national level, the environment and social division of DOR will provide overall guidance and technical support to the provincial and district resettlement committees. The environment and social divisions at provincial levels will be strengthened under the Project. Provincial, district, and village resettlement committees will be established. Village resettlement committees will actively participate in design and implementation of the Resettlement Plan and Social Action Plan. A separate organization (experienced local consultant) will implement the income rehabilitation measures and Social Action Plan.

80. Monitoring of Resettlement Plan Implementation and Impacts. Monitoring of the land acquisition process will be conducted independently of MCTPC by a local qualified agency.

81. Cost Estimates. The estimated cost for resettlement planning, Resettlement Plan preparation, implementation, management, and monitoring is $1.5 million and is provided as a separate item in project cost.

82. Implementation Schedule. All resettlement activities will be coordinated with the civil works schedule. The Government and ADB will ensure that demolition and construction will not 16 begin unless the Government has completed satisfactorily and in accordance with the approved Resettlement Plan compensation payment and relocation to new sites.

VII. ECONOMIC ASSESSMENT

83. The Project will generate substantial economic and social benefits for the inhabitants in the project area by providing improved access to services and markets and other opportunities in an environmentally acceptable manner. The Project has an internal rate of return for the Lao PDR economy of 22%. The Project will also generate indirect economic and social benefits such as better access to social infrastructure services, employment, and income-enhancing opportunities arising from regional linkages with the large and growing economies of Thailand and PRC. The social and economic analysis of the project indicated that one of the most significant economic endowments of Bokeo and its provincial capital Houayxay is its location on the Mekong River and proximity to Thailand.

84. The project is conceived as a regional development initiative that will link two remote provinces of the Lao PDR to two growing economies of the region. The existing road is impassable for 4 months a year and, as a consequence, the existing traffic is light. The region can essentially be described as a transport-deficient environment.

85. High dependence on subsistence agriculture is a major reason for poverty in the project area. As per the December 20016 Participatory Poverty Assessment, the problem most cited by villagers as preventing economic growth is lack of all-weather roads by which to market their produce. Accessibility to markets in rainy season is essential, since that is when most agricultural goods are mature and ready for sale. Areas that have potential for developing cash crops cannot take advantage of such income-enhancing opportunities due to lack of reliable transportation. Table 2 shows the percentage of villages in Bokeo and Louang Namtha with access to roads. Louang Namtha is among the most transport-deficient areas in the country. Restricted access and weather-dependent roads have implications for cost-efficiency of development programs, on the ability to target health care and educational services to the poor, and for the sustainability of such programs. Table 2. Access to Roads (percentage of villages)

Province 6+ km to Access in Access in Main Road Rainy Season Dry Season Louang Namtha 42 % 31% 41% Bokeo 38% 41% 77% Lao PDR 35% 50% 79% Source: National Statistics Centre.

86. The socioeconomic status of villagers living along the project road varies considerably– from the vulnerable highland minorities to the more prosperous lowland communities, particularly those close to the towns of Namtha and Houayxay. The villagers located along the project road range from impoverished peasants with a marginal existence to small farm entrepreneurs who are able to respond to the market opportunities associated with improved transportation. Nonfarm employment has increased in the villages nearer to Houayxay. Indeed,

6 ADB. (2001). Participatory Poverty Assessment: Lao People's Democratic Republic. Manila, p. 65. 17 the average annual incomes of the people in the first five villages along the road north of Houayxay and closer to the Thailand border vary almost directly with distance from the provincial capital (Table 3).

Table 3. Income of Villagers and Distance from Houayxay

Village Name Item Pa Oi Ou Dom Pak Hao Mok Ka Nam Ho Tai Neua Chok Kilometers from Houayxay 5.7 6 6.5 7.8 9.0 1996 per capita income $162 $127 $141 $68 $56 2001 per capita income $190 $172 $121 $84 $80 Source: Draft Feasibility Study.

87. The project includes the cost of environmental mitigation measures so as to avoid negative impacts. The base cost for environmental mitigation, management, and monitoring is estimated at $1 million, comprising $600,000 for implementation of the environmental management plan and $400,000 for the cost of protection against unregulated commercial logging and wildlife trade (Table 4).

Table 4. Cost Estimates for Environmental Management and Mitigation Measures Details Costs ($) Environment Management Plan Public consultation, translation, and publication 20,000 Third party monitoring including local capacity building 520,000 and training of stakeholders Monitoring equipment 60,000 Subtotal 600,000 Protection Against Unregulated Commercial Logging and Wildlife Trade Strengthening international border checkpoints, monitoring for unregulated commercial 170,000 logging, wildlife trade, and capacity building Setting up of three forestry checkpoints, training, and capacity building of officials 130,000 Raising village and urban awareness and strengthening capacity for 100,000 monitoring wildlife trade and unregulated commercial logging Subtotal 400,000

Source: Draft Feasibility Study.

88. The estimated total investment for the project is $86 million, of which $1 million is attributable to the cost of the environmental safeguards and management measures that will ensure that the proposed development is environmentally acceptable. This is in addition to the ongoing efforts undertaken by the Government and supported by ADB under the Environment and Social Program Loan7 amounting to $20.0 million.

7 ADB. 2001. Report and Recommendation of the President to the Board of Directors on a Proposed Loan to Lao PDR for the Environment and Social Program. Manila. 18

VIII. ENVIRONMENTAL MONITORING

89. Under the Environment and Social Program Loan, the Government has adopted a proactive approach to integrate environmental and social safeguard issues in the project cycle. Under this program loan, a targeted policy reform agenda for environmental management and social safeguards in the energy and transport sectors has been agreed upon between ADB and the Government of Lao PDR. Under this program, EIA processes are mandatory for environmentally sensitive projects. The Government has also adopted binding environmental and social safeguard codes of practice directed at contractors and work supervisors. The institutional structure for this project monitoring is designed to be integrated (and supplemented wherever necessary) with the ongoing efforts. MCTPC will be responsible for the implementation of the environment management plan (EMP) during the entire duration of the Project. DOR within MCTPC will be directly responsible for the monitoring and evaluation to ensure that mitigation and other necessary steps are taken to ensure compliance with the environmental and social safeguard issues. For this purpose, the environment and social division of DOR will be strengthened with adequate staff, skills, and budget to monitor this project implementation. It is also proposed to set up functional environmental and social divisions in the provincial offices of Department of Communication, Transport, Post, and Construction at Louang Namtha and Bokeo. The project cost estimates include adequate training and capacity building at DOR and at the provincial level for the implementation of the EMP. Implementation of mitigation measures for impacts on the physical and biological environment during the construction stage will be the responsibility of the contractor, and these will be made binding by ensuring performance bonds linked to environmental and social safeguard practices as identified in the EMP.

90. To facilitate the effective implementation of the EMP and the environmental monitoring and evaluation, the Project will establish a project environmental unit in accordance with the Government’s regulations. The unit will consist of environmental and social experts from the Department of Communication, Transport, Post, and Construction in Bokeo and Louang Namtha, the supervision consultant, and others depending on the requirements.

91. The Science, Technology and Environment Agency (STEA) is responsible for overall guidance of MCTPC in matters pertaining to the inspection of the monitoring and evaluation for the environmental monitoring program of the project. In day-to-day activities, the departments of science, technology and environment in Bokeo and Louang Namtha provinces will maintain close consultation with road sector offices and the Project for implementation of the EMP. Under the existing regulations, STEA has the right to inspect projects to ensure compliance with environmental monitoring programs. Other agencies such as the Nam Ha NBCA Management Office located in the project area will be used to ensure effective coordination and monitoring.

92. Under the Environment and Social Program Loan, the Government has adopted the principle of third party monitoring for all complex and environmentally sensitive projects. The project monitoring structure will include an internationally recognized agency to be engaged directly by the Government for independent monitoring. It will visit the project site every 3 months for monitoring and will submit reports to MCTPC, STEA, and ADB. The independent monitoring agency will provide training for capacity building of relevant Lao PDR government officials.

93. DOR will provide monthly reports on environmental monitoring to STEA; the provincial science, technology and environment offices in Louang Namtha and Bokeo; and the environment and social division of DOR. DOR will submit quarterly summaries, separately from 19 the reports of independent monitoring, for inclusion in the quarterly progress reports to ADB. The quarterly summaries will also include the status of any resettlement plan and other social mitigation and compensation measures taken. The Government and ADB will carry out periodic joint reviews of the Project, and the environment and social safeguard issues performance will be evaluated in joint workshops. A summary of environmental monitoring program is in Appendix 2.

IX. PUBLIC INVOLVEMENT

94. Extensive stakeholder consultations were undertaken as a part of project preparation. Personal interviews with the inhabitants were carried out in March and April 2002, visiting 26 villages. About 70 people were interviewed including village headmen, men and women, youth, adults, and village elders. Most villagers spoke in favor of road development. Concerns raised by the interviewees were loss of structures and agricultural land due to realignment and widening. In addition to the consultations with the inhabitants, extensive consultations took place with government officials at the national and local levels, and both local and international nongovernment organizations.

95. The major positive expectations of the local stakeholders include (i) economic development through opening up markets for trade in local products, (ii) improved quality of life for the people living in the road corridor, and (iii) provision of services and development of infrastructure through improved access.

96. The main concerns include (i) risks of increased illegal logging, wildlife trade, and drug trade; (ii) spread of disease including HIV/AIDS; and (iii) loss of land and structures by road widening and realignment.

97. The public consultations indicated that (i) there is no evidence of opposition to the road construction; (ii) some people showed concerns about land acquisition, resettlement, illegal logging, wildlife trading, and spread of communicable disease. The project design integrates mitigation measures to address these concerns through a fully funded environmental management plan and resettlement plan. Further public consultations will take place in accordance with the requirements of Lao PDR regulations on environmental assessment, and the results will be reported in the documents submitted to the Board.

X. CONCLUSIONS

98. The Project will improve access to and from the northwestern part of the Lao PDR, which remains isolated during the rainy season. Linking these provinces to the growing economies of Thailand and PRC is expected to bring additional income and employment generation opportunities.

99. For the environmental impacts, whether they are major, moderate, or minor, during the construction and operation phases, mitigation measures have been developed together with a monitoring program. In addition, enforcement of the government program for forest management, such as reduction of quotas for logging, is expected to further enhance the effectiveness of the mitigation measures. The most important challenge facing the Project is to ensure that it brings positive gains to the local inhabitants, leads to poverty reduction in the region, and becomes an important source of development without causing negative impacts on the rich natural resource base while preserving the unique social identity of this region.

SUMMARY ENVIRONMENTAL IMPACTS, MITIGATIONS, AND MONITORING PLAN

Project Phase/ Potential Negative Impacts Mitigation Measures Responsibilities Significance Monitoring Agency Erosion and instability of cut a. Design cut slope to minimize instability. Design consultant Moderate to major Design: MCTPC faces and borrow pits b. Design adequate drainage structures. Site managers Construction: MCTPC c. Minimize major earth works during rainy MCTPC Operation: MCTPC season. Erosion from disposal of cut a. Identify suitable bench area to receive spoil. Design consultant Moderate to major Design: MCTPC spoil b. Dispose of spoil on degraded or cleared land, Site managers Construction: MCTPC former borrow pits or quarries. MCTPC Operation: MCTPC c. Avoid disposal into gullies or watercourses. Loss of vegetation and a. To the extent possible, restrict road Design consultant Minor to moderate Design: MCTPC habitat through road construction activities to the formed easement Site managers Construction: MCTPC, MAF widening, realignment of b. Do not allow side roads in forested areas. MCTPC in close Operation: MCTPC right-of-way, etc c. Limit quarrying activities to a minimum of consultation with MAF necessary sites. and Nam Ha NBCA d. Allow new quarries within Nam Ha NBCA or management office any of the protected areas. e. Do not cut any trees outside the construction zone. f. Limit activities in Nam Ha NBCA to the existing alignment. Impacts on wildlife through a. Do not to undercut slopes supporting forest Design consultant Moderate to major Design: MCTPC interruption of migratory vegetation. Site managers Construction MCTPC routes and other habitat b. Strict monitoring on illegal logging. MCTPC in close Operation. MCTPC disturbances c. Use slightly oversized square culverts for consultation with MAF small wildlife migration in Nam Ha NBCA. and Nam Ha NBCA d. Keep the road section in Nam Ha NBCA free management office of any structures. e. Apply relaxed design standards. f. Do not build side roads in Nam Ha NBCA. Impacts on wildlife through a. Strengthen enforcement of existing wildlife Local forestry offices Major Operation: MCTPC, MAF increased pressure from regulations prohibiting trade in endangered MAF illegal trade species. MCTPC b. Build government capacity for enforcement of wildlife laws. c. Improve border area control. d. Establish checkpoints at either end of the segment of the project road in Nam Ha NBCA.

MAF = Ministry of Agriculture and Forestry; MCTPC = Ministry of Communication, Transport, Post, and Construction; NBCA = national biodiversity conservation area

SUMMARY ENVIRONMENTAL IMPACTS, MITIGATIONS, AND MONITORING PLAN

Project Phase/ Potential Negative Impacts Mitigation Measures Responsibilities Significance Monitoring Agency Overexploitation of timber a. Monitor closely any tree cutting required for MAF Major Construction: MCTPC, MAF resources through illegal and road widening and realignment. MCTPC Operation: MCTPC, MAF unsustainable timber cutting b. Improve border area controls on all sides with increased staffing, training, and resources. c. Establish three forest checkpoints. d. Raise awareness among villagers. Dust and air pollution a. Water roads in the construction area every Site manager Minor to moderate Construction: MCTPC, MAF day during dry season. MCTPC b. Maintain all construction vehicles to minimize vehicle emissions. Noise a. Use working and maintained mufflers on all Design consultant Minor to moderate Design: MCTPC vehicles. Site manager Construction: MCTPC b. Avoid working at night near settled areas and MCTPC Operation: Nam Ha NBCA in Nam Ha NBCA. Nam Ha NBCA management office c. Avoid disruption of important events by management office blasting activities. Loss of agricultural land a. Minimize realignment through agricultural Design consultant Moderate Design: MCTPC through road widening and land. Site manager Construction: MCTPC, MAF realignment b. Do not site borrow pits or dispose of cut spoil on agricultural land. Encroachment on irrigation a. Design appropriate drainage structures. Design consultant Minor to major Design: MCTPC, MAF structures from road b. Avoid encroachment on irrigation systems in Site managers Construction: MCTPC, MAF widening and realignment use. Local irrigation office c. Consult with relevant government offices and villagers. Encroachment on known a. Avoid realignment in the area of the earthen Design consultant Minor to major Design: MCTPC cultural heritage sites wall at Viangphoukha. Site managers Construction: MCTPC b. Widen the road in the opposite direction to MCTPC avoid damage to the stone wall at Ban Tafa. Ministry of Culture and c. Operate carefully to avoid damage to cultural Information heritage sites. Creation of stagnant water a. Incorporate adequate drainage and fill in Design consultant Minor Design: MCTPC bodies in borrow pits, borrow pits and quarries. Site managers Construction: MCTPC quarries, etc b. Use old borrow pits as cut spoil depositories. MCTPC Operation: MCTPC

SUMMARY ENVIRONMENTAL IMPACTS, MITIGATIONS, AND MONITORING PLAN

Project Phase/ Potential Negative Impacts Mitigation Measures Responsibilities Significance Monitoring Agency Creation of a new pathway a. Site labor camps away from local communities Design consultant Major Design: MCTPC for disease vectors affecting and rivers. Site managers Construction: MCTPC, humans b. Provide decent housing, water supply, and MCTPC in cooperation Ministry of Health human and solid waste management. with Ministry of Health c. Make medical treatment available for workers. d. Raise awareness. Creation of a new pathway a. Establish expanded and improved sanitation MCTPC Moderate to major Operation: MAF for disease vectors affecting services and border checkpoints, with MAF animals and plants continual updating of information on problems and prevention techniques.

Appendix 2 23

SUMMARY ENVIRONMENTAL MONITORING

Monitoring by Environmental Impacts Frequency Performing Party Project Phase Soils Earthworks, drainage installation, and cut spoil Daily Const. manager Design and disposal construction Erosion Monthly Monitor Construction Fisheries/Aquatic Ecology: Water quality Monthly Monitor Construction Riverbed ecology Monthly Monitor Construction Surface runoff management, protection of Daily Const. manager Construction riverside vegetation Precious Ecology and Forest Resources: Roadside vegetation Daily Const. manager Construction Wildlife, timber, and nontimber forest products Monthly Monitor and govt. Construction agencies and operation Structures and Agricultural Land: Irrigation and water supply systems, structures, Monthly MCTPC and Design and and agricultural land grievance construction committee Cultural Resources: Known cultural/archaeological sites Monthly Const. manager Design and construction Unearthed ancient sites/relics Monthly Monitor Construction Cultural resources and tradition Quarterly Govt. agency Operation Environmental Aesthetics Direct construction-related visual impacts Monthly Const. manager Design and construction Indirect impacts, trash, development Quarterly Govt. agencies Operation Noise Quarterly Monitor and Construction contractor Health and Safety Dust and air pollution from emissions Monthly Monitor Construction and operation Ground and water contamination Monthly Const. manager Construction Risk of toxic spills Monthly MCTPC Construction and operation Disease Monthly Monitor and govt. Construction agencies and operation Accident risk Monthly MCTPC and govt. Construction agencies and operation Economics Monthly MCTPC Construction Const. = construction; Govt. = government; MCTPC = Ministry of Communication, Transport, Post and Construction Notes. (i) "Monitor” refers to the Department of Roads, Ministry of Communication, Transport, Post and Construction's (MCTPC) principal investigator for monitoring or a quarterly third party environmental monitoring consultant who will have responsibility for the overall monitoring and reporting. (ii) “Construction manager” refers to the construction site manager and/or field engineer who will oversee the construction contractors on behalf of MCTPC. (iii) “Contractor” refers to the construction contractors for each section of the road. (iv) “Government agency” refers to a monitoring agency other than MCTPC such as Science, Technology and Environment Office, which is currently responsible and is expected to continue monitoring in the future.