Power Network Development Project (RRP MYA 50020) Initial Environmental Examination March 2018 MYA: Power Network Development Project— Distribution Component Prepared by AF-Consult Switzerland Ltd. for the Electricity Supply Enterprise and the Asian Development Bank. 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. 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. Client Asian Development Bank Project Proposed Loan Republic of the Union of Myanmar: Power Net- work Development Project DISTRIBUTION COMPONENT Document Type Initial Environmental Examination (DRAFT) Document number 50020-002 January 2018 www.afconsult.com/switzerland Client Consultant Asian Development Bank AF-Consult Switzerland Ltd 6 ADB Avenue, Mandaluyong City 1550, Metro Täfernstrasse 26 Manila, Philippines 5405 Baden/Dättwil Document Information Project Proposed Loan Republic of the Union of Myanmar: Power Net- work Development Project DISTRIBUTION COMPONENT Proposal Initial Environmental Examination (DRAFT) Proposal number 50020-002 Department Transmission & Distribution Person responsible Eduard Feser Telefon +41 (0) 56 483 15 39 Fax +41 (0) 56 483 17 99 eMail [email protected] Reference FES G:\Meine Ablage\PPTA Myanmar\Reports\Submission 2017-11- Document path 30\Distribution\AFC TA 9179 Distribution 2017-11-30 Draft Report_Initial Environmental Examination.docx AF-Consult Switzerland Ltd Proposed Loan Republic of the Union of Myanmar: Power Network Development Project DISTRI- ii BUTION COMPONENT - 50020-002 Initial Environmental Examination (DRAFT) - January 2018 Content 1 Executive Summary 1 1.1 Objectives of Study 1 1.2 Project Scope - Components 1 1.3 Impacts and Mitigation Measures 4 2 Introduction 11 2.1 Background to IEE 11 2.2 Assessment Context 11 3 Environmental Policy, Legal, and Administrative Framework 13 3.1 Framework for Environmental Management in Myanmar 13 3.2 Regulations on Environmental Impact Assessment in Myanmar 14 3.3 Provisions of National Environmental Quality (Emissions) Guidelines (2015) Applicable to the Distribution Component 16 3.4 Electricity Law (2014) 18 3.5 Other Related Environmental Regulations 19 3.6 International Environmental Conventions and Agreements 20 3.7 ADB Safeguard Policy Statement 21 3.8 Comparison of Government of Myanmar Laws and Regulations with ADB Safeguard Policies 23 4 Project Description 26 4.1 Impact Footprints 31 4.2 Project Implementation Phases 34 4.3 Project Proponent 36 5 Description of Environmental Condition 37 5.1 Physical Resources 37 5.2 Land Use 44 5.3 Climate 48 5.4 Hydrology 51 5.5 Air Quality 55 5.6 Noise 55 5.7 Biological Resources 55 5.8 Social and Cultural Resources 56 6 Information Disclosure and Public Consultation 65 6.1 Information Disclosure Process 65 6.2 Future Public Participation and Information Disclosure 77 7 Potential Environmental Impacts and Mitigation 78 7.1 Pre-Construction Phase 78 7.2 Impacts and Mitigation Measures during Construction Phase 82 7.3 Operation Phase 89 7.4 Associated Facilities 92 7.5 Cumulative Impacts 92 8 Analysis of Alternatives 94 8.1 Selection of Regions and States 94 8.2 Selection of Subproject Sites 94 8.3 Alternatives to Distribution System Configuration 95 8.4 Alternatives to Substation Design 95 8.5 Alternatives to Transmission Lines 95 AF-Consult Switzerland Ltd Proposed Loan Republic of the Union of Myanmar: Power Network Development Project DISTRI- ii BUTION COMPONENT - 50020-002 Initial Environmental Examination (DRAFT) - January 2018 9 Grievance Redress Mechanism 96 9.1 Type of Complaints 96 9.2 Accessibility 96 9.3 Grievance Resolution Process 97 9.4 Other requirements 98 10 Environmental Management Plan 99 10.1 Institutional Arrangements and Responsibilities 99 10.2 Environmental Management Plan Framework 105 10.3 Preparation of Environmental Management Plans 106 10.4 Environmental Management Plan Review and Approval 107 10.5 Supervision and Monitoring of EMP Implementation 107 10.6 Environmental Monitoring Plan 119 11 Conclusion and Recommendations 131 APPENDIX A: RAPID ENVIRONMENTAL ASSESSMENT CHECKLIST ......................... 136 APPENDIX B: DOCUMENTATION OF PUBLIC CONSULTATIONS .............................. 144 APPENDIX C: ENVIRONMENTAL DUE DILIGENCE OF SUBPROJECTS PER REGION/STATE 160 APPENDIX D: ENVIRONMENTAL COMPLIANCE AUDIT OF EXISTING SUBSTATIONS . 207 APPENDIX E: ENVIRONMENTAL DUE DILIGENCE OF EXISTING WASTE MANAGEMENT SYSTEM of ESE ................................................................................... 218 APPENDIX F: EMP FRAMEWORK ........................................................................ 223 © Copyright AF-Consult Switzerland Ltd AF-Consult Switzerland Ltd Proposed Loan Republic of the Union of Myanmar: Power Network Development Project DISTRI- iii BUTION COMPONENT - 50020-002 Initial Environmental Examination (DRAFT) - January 2018 Index of Figures Figure 1 Project Location 2 Figure 2 Typical 66kV single circuit tension and suspension tower 32 Figure 3 Typical 33kV towers (with 11kV and 400kV) and 11kV distribution tower 33 Figure 4 Disturbed Areas during Pole Installation 34 Figure 5 Location of Project Components in Ayeyarwaddy Region 38 Figure 6 Location of Project Components in Bago Region 39 Figure 7 Location of Project Components in Mon State 40 Figure 8 Location of Project Components in Kayin State 41 Figure 9 Location of Project Components in Rakhine State 42 Figure 10 Topographic map of Myanmar showing location of project components 43 Figure 11 Typical land use at project sites in Ayeyarwaddy Region 44 Figure 12 Paddy fields adjacent to existing substations in Bago Region 45 Figure 13 Land uses at project sites in Mon State 46 Figure 14 Typical land uses at project locations in Kayin State 47 Figure 15 Land use setting in Rakhine State 48 Figure 16 Map of protected areas and key biodiversity areas showing the project areas 56 Figure 17 Mine Accident Data, 2014 64 Figure 18 Typical configuration of transformers at existing substations standing on concrete platform/foundation 79 Figure 19 Examples of existing substation fence 80 Figure 20 Examples for oil pits for the proposed project 81 Figure 21 Example of proposed substation fence 82 Figure 22 Institutional reporting relationship on environment safeguards of the project 99 Figure 23 Organizational structure on environment and social safeguards 104 Index of Tables Table 1 Assessment thresholds for electrical power transmission lines and substations based on the Myanmar EIA Procedure (2015) 15 Table 2 NEQEG Effluent Limits applicable to electric power transmission and distribution 17 Table 3 NEQEG Limits for Site Runoff and Wastewater Discharges (Construction Phase) 17 Table 4 NEQEG Exposure Limits to Electric and Magnetic Fields 18 Table 5 NEQEG Allowable Noise Levels 18 Table 6 Distribution Line Minimum Safety Clearance based on Electricity Rules (1985) 19 Table 7 Other Related Environmental Laws and Regulations in Myanmar 19 Table 8 Myanmar’s International Agreements on Environmental Management 20 Table 9 Gap Matrix on Environment Safeguards 23 AF-Consult Switzerland Ltd Proposed Loan Republic of the Union of Myanmar: Power Network Development Project DISTRI- iv BUTION COMPONENT - 50020-002 Initial Environmental Examination (DRAFT) - January 2018 Table 10 Scope of Distribution Component 27 Table 11 Length of the Transmission Lines per Region/State 30 Table 12 Summary of Substation Works per Region/State 30 Table 13 Administrative Units and Land Area of Project States/Regions 37 Table 14 Land Uses in Project Regions/States 48 Table 15 Climate Change Projections for Project Regions/States, 2021-2040 50 Table 16 Project Areas Affected by Major Floods (1997-2007) 53 Table 17 MEI Water Quality Monitoring in Bago Region and Ayeyarwaddy Region 54 Table 18 Population Size, Proportion of Total Population and Density in the Five Project States and Regions (2014) 58 Table 19 Proportion of Population by Urban and Rural Areas in the Project Regions and States 59 Table 20 Main economic activities in the project regions/states 60 Table 21 Leading Causes of Morbidity (2011) 60 Table 22 Leading Causes of Mortality (2011) 61 Table 23 Schedule of Public Consultation Activities 66 Table 24 Summary of Issues raised during the Public Consultations 69 Table 25 Summary of Issues Identified during Meetings with Government Agencies 75 Table 26 Indicative staffing on environment and social safeguards 104 Table 28 Environmental Management Plan during Pre-construction Phase 108 Table 29 Environmental Management Plan during Construction Phase 110 Table 30 Environmental Management Plan during Operational Phase 116 Table 31 Environmental Monitoring Plan 119 Table 32 Milestones for Environmental Compliance of the Distribution Component 126 Table 33 Cost Estimate of Environmental Management and Monitoring Activities 128 List of Abbreviations ADB Asian Development Bank ASEAN Association of Southeast Asian Nations CITES Convention on International Trade in Endangered Species of Wild Fauna and DPTSC Department of Power Transmission and System Control ECD Environmental Conservation Department ECL Environmental Conservation Law EIA Environmental