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Royal Government of Bhutan ROYAL GOVERNMENT OF BHUTAN PROSPECTIVE STRATEGIC ASSESSMENT OF: PROPOSED HYDROPOWER PROJECTS ON BASIN-2 (WATERSHED OF THE PUNASANGCHU RIVER) FIGUREͲ2:LOCATIONMAPOFBASINͲ2ANDSITESOFPROPOSEDHYDROPOWERDEVELOPMENTSITES ThelegendforFigureͲ2isdescribedinSectionͲ5.5ofthisReport. 1 GROSS NATIONAL HAPPINESS COMISSION NATIONAL ENVIRONMENT COMMISSION NATIONAL LAND COMMISSION PREAMBLE The Strategic Assessment (SA) Report is prepared to identify the wider development impacts expected from the development of mega‐ hydropower projects planned for Basin‐2 (the Punasangchu River Basin). The report identifies expected development impacts and introduces measures to effectively manage and mitigate forecasted negative environmental, social and economic impacts while introducing measures to reinforce expected positive impacts expected from the developments. The foundation of the Report is the agreed SA Objective and, as such, the report ventilates the Objective into sub‐objectives relative to themes and sectors (Topics) agreed by stakeholders. These cover environmental, social, cultural, economic and global (climate) dimensions. The SA Report is the key consultation document detailing the SA process and its outcomes. As such, the document is a stand‐alone document that serves to inform government authorities, stakeholders and the general public. 1 COVER NOTE The attached Strategic Assessment Report has been prepared for: HYDROPOWER DEVELOPMENTS PLANNED FOR BASIN‐2 THE GROSS NATIONAL HAPPINESS COMMISSION, The Responsible AuthorityTHE NATIONALis: ENVIRONMENT COMMISSION, THE NATIONAL LAND COMMISSION Mr. SONAM YANGLEY – DIRECTOR GENERAL ‐ NECS CONTACT MR. KARMA TSHITEEN‐SECRETARY – GNHC DASHO SANGAY KHANDU‐SECRETARY ‐ NLC ADDRESS TEL. No E‐MAIL SIGNATURE FOR THE GNHC FOR THE NEC FOE THE NLC DATE 2 Figure‐1: MAP OF BHUTAN 3 FIGURE‐2: LOCATION MAP OF BASIN‐2 AND SITES OF PROPOSED HYDROPOWER DEVELOPMENT SITES The legend for Figure‐2 is described in Section‐5.5 of this Report. 4 AREA OF INFLUENCE AND FOCUS AREAS CONSIDERED DURING THE STRATEGIC ASSESSMENT Figure‐3: Area of Influence: Gasa, Punakha, Wangdue‐Phodrang, Dagana, Tsirang, Sarpang Dzongkhags (North to South). The Focus area was selected as two linked areas: to the North Punakha and Wangdue‐Phodrang and the second in the Southern region of Dagana, Sarpang and Tsirang Dzongkhags. 5 TABLE OF CONTENTS PREAMBLE ..................................................................................... 1 COVER NOTE .................................................................................. 2 TABLE OF CONTENTS ...................................................................... 6 ACRONYMS .................................................................................... 8 ACKNOWLEDGEMENTS ................................................................ 10 EXECUTIVE SUMMARY ................................................................. 12 1. INTRODUCTION ....................................................................................................... 30 2. BACKGROUND ......................................................................................................... 32 2.1 ADMINISTRATIVE AND SOCIO‐ECONOMIC PROFILE OF THE AREA OF INFLUENCE ..................... 32 2.2 ENVIRONMENTAL PROFILE OF THE AREA OF INFLUENCE ..................................................... 41 3. METHODOLOGY ....................................................................................................... 44 3.1 WHAT IS A STRATEGIC ENVIRONMENTAL/STRATEGIC ASSESSMENT ..................................... 44 3.2 STRATEGIC ENVIRONMENTAL ASSESSMENT – A PROCESS TAILORED TO THE BHUTANESE CONTEXT ................................................................................................................. 45 3.3 SA PROCESS ORGANIZATION ........................................................................................ 46 3.4 GEOGRAPHIC SCOPE OF THE STRATEGIC ASSESSMENT ...................................................... 47 3.5 TEMPORAL FRAMEWORK OF THE STRATEGIC ASSESSMENT ................................................ 47 3.6 PROCESS METHODOLOGY ............................................................................................. 47 3.7 PUBLIC CONSULTATION ................................................................................................ 50 3.8 STRATEGIC ASSESSMENT: WORKSHOP‐1 ......................................................................... 50 3.9 DEFINING A BASELINE: DATA AND INFORMATION GATHERING AND COMPILATION .................. 51 3.10 STRATEGIC ASSESSMENT: WORKSHOP‐2 ......................................................................... 51 3.11 ASSESSMENT METHODOLOGY ....................................................................................... 52 3.12 DESCRIPTION OF THE (ZERO OPTION): BUSINESS AND USUAL SCENARIO ................................ 53 3.13 IDENTIFICATION AND SELECTION OF ALTERNATIVES ........................................................... 53 4. OBJECTIVE AND SUB‐OBJECTIVE OF THE STRATEGIC ASSESSMENT ......................... 54 4.1 PURPOSE OF THE OBJECTIVES AND SUB‐OBJECTIVES .......................................................... 54 4.2 THE OBJECTIVE OF THE SA ............................................................................................ 54 4.3 IDENTIFICATION OF TOPICS AND THEMES TO BE CONSIDERED .............................................. 54 4.4 THE SUB‐OBJECTIVES OF THE STRATEGIC ASSESSMENT ..................................................... 55 5. ASSESSMENT OF GNH IMPACTS (ENVIRONMENTAL, SOCIAL, ECONOMIC, CULTURAL, SPIRITUAL AND GOOD GOVERNANCE) ................................................... 57 5.1 IDENTIFICATION AND SELECTION OF DEVELOPMENT ALTERNATIVES ...................................... 57 5.2 DESCRIPTION OF THE PROPOSED ALTERNATIVES OVER THE AGREED TEMPORAL AND GEOGRAPHIC SCOPE OF THE ASSESSMENT ...................................................................... 58 5.3 REJECTED ALTERNATIVES AND RATIONALE FOR REJECTION .................................................. 62 5.4 THE PREFERRED ALTERNATIVE ....................................................................................... 64 5.5 DETAILED DESCRIPTION OF THE PREFERRED ALTERNATIVE .................................................. 64 5.6 IDENTIFIED RISKS ................................................................................................... 72 6 RISK CATEGORISATION ................................................................................................... 73 5.7 MACRO‐ZONATION OF THE NORTH AND SOUTH FOCUS AREAS ............................................ 74 5.8 DESCRIPTION OF THE EXPECTED IMPACT ON NATIONAL SUSTAINABLE DEVELOPMENT OBJECTIVES (LOCAL, REGIONAL AND NATIONAL) .............................................................. 75 6. ENVIRONMENTAL AND SOCIO‐ECONOMIC IMPACTS ............................................................ 77 7. MANAGEMENT AND MITIGATION MEASURES ........................................................ 89 7.1 PROPOSED MANAGEMENT AND MITIGATION MEASURES (NECESSARY TO ACHIEVE SUB‐ OBJECTIVES AND MEET NATIONAL STANDARDS) .............................................................. 89 7.2 PRIORITISED DEVELOPMENT ACTIONS IN THE AREA OF INFLUENCE ..................................... 100 8. INDICATORS AND MONITORING ............................................................................ 104 8.1 BENCHMARKING ...................................................................................................... 104 8.2 DZONGKHAG AUDITS ................................................................................................. 106 9. RECOMMENDATIONS ............................................................................................ 107 10. NEXT STEPS ............................................................................................................ 109 11. REFERENCES........................................................................................................... 111 12. ANNEXES ................................................................................................................ 113 12.1 ANNEX‐1: THE STRATEGIC ASSESSMENT PROCESS ................................................ 114 A: KEY STAGES IN THE STRATEGIC ASSESSMENT PROCESS ........................................................... 114 SCREENING ....................................................................................................................... 115 SCOPING 116 IDENTIFICATION, SELECTION AND ASSESSMENT OF ALTERNATIVES ............................................... 117 SELECTION OF PREFERRED ALTERNATIVES ............................................................................... 117 IMPACT EVALUATION .......................................................................................................... 118 SETTING PLANNING AND DEVELOPMENT PRIORITIES ................................................................. 118 INTRODUCING GNH MANAGEMENT AND MITIGATION MEASURES ............................................... 118 DEVELOPMENT CONDITIONALITY .......................................................................................... 119 B: THE STRATEGIC ASSESSMENT REPORT ................................................................................ 119 C: TECHNICAL REVIEW ........................................................................................................ 120 D: ADOPTION, ENDORSEMENT AND RECORD OF DECISION ........................................................
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