Decree-‐Law No. 5 / 2011 of 9 February

Public Disclosure Authorized IIAsian Development Bank

Second District Capitals Water Supply Project (46160-001) TA-8064 TIM Public Disclosure Authorized

FINAL REPORT Public Disclosure Authorized

Volume 3 - Appendix O Initial Environmental Examination Public Disclosure Authorized

aurecon In associationwith

January 2016 -� RINDASAUNHAIURAS COMMUNIDADE (RJHACO) ·�

Appendix O Environmental impact assessment and environmental management plans - Baucau - Lospalos - Same - Viqueque

Appendix O Baucau IEE and EMP

Contents I. Executive Summary 1 II. Policy, Legal, and Administrative Framework 3 A. Environmental Regulatory Compliance ...... 3 B. Environmental Clearance Requirements...... 3 C. Occupational Health and Safety ...... 7 D. International Conventions ...... 7 E. Other Relevant Safeguards ...... 8 III. Description of the Project 8 A. Existing Water Supply System in Baucau ...... 9 B. Proposed Improvement/Upgrading of Water Supply System in Baucau ...... 10 IV. Description of the Environment 15 A. Physical Environmental ...... 15 A.1. Geographical Location ...... 15 A.2. Topography ...... 16 A.3. Geology and Soils ...... 16 A.4. Climate and Meteorology ...... 17 A.5. Water Resources ...... 25 B. Biological Environmental ...... 31 B.1. Flora and Fauna ...... 31 B.2. Watershed Characterization and Assessment ...... 32 C. Socio-Economic Condition ...... 34 V. Anticipated Environmental Impacts and Mitigation Measures 38 A. Overview of Impacts ...... 38 VI. Analysis of Alternatives 42 VII. Information Disclosure, Consultation, and Participation 46 VIII. Grievance Redress Mechanism 46 IX. Environmental Management Plan 47 A. Overview ...... 47 B. Mitigation Measures Plan ...... 47 B.1. Solid Waste Management...... 48 B.2. Siltation/Contamination of Bodies of Water ...... 48 B.3. Noise Levels in the Area ...... 48 B.4. Total Suspended Particulates in the Atmosphere ...... 48 B.5. Occupational Health and Safety ...... 48 B.6. Road Maintenance ...... 48 B.7. Designation of Greenbelts ...... 48 B.8. Construction Contractors’ Program ...... 49 C. Environmental Monitoring Report ...... 49 C.1. Pre-Construction Phase...... 49

C.2. Construction Phase ...... 49 C.3. Operation and Maintenance Phase ...... 50 C.4. Public Health Monitoring ...... 50 C.5. Occupational Health and Safety Monitoring ...... 50 D. Institutional Implementation and Reporting Arrangements ...... 50 D.1. Project Implementation and Reporting Arrangements ...... 50 X. Conclusion and Recommendation 51

Annexes

Annex 1: Decree---Law No.5/2011 9 February or Environmental Licensing Law Annexes 2-3: Environmental Assessment, Classification of Categories of Project Annexes 4 - 10: Laboratory Tests Results in Baucau Annex 11: Minutes of Stakeholders’ Consultation Conference Annex 12: Photo documentation of the Stakeholder’s Conference Annex 13: Attendance Sheet of the Stakeholders’ Consultation Conference Annex 14: Environmental Management Plan Matrix

Figures Figure 1 Map of Baucau Water Supply ...... 12 Figure 2 Schematic Diagram of Baucau Water Supply System ...... 13 Figure 3 Baucau District Map ...... 15 Figure 4 Location of Baucau in Timor Leste ...... 15 Figure 5 Soil Map of Timor Leste ...... 17 Figure 6 Mean Annual Rainfall of Timor Leste ...... 18 Figure 7 Mean Annual Temperature of Timor Leste ...... 18 Figure 8 Average Daily Minimum Temperature ...... 19 Figure 9 Average Daily Maximum Temperature ...... 20 Figure 10 Flood Map of Timor Leste ...... 21 Figure 11 Landslide Map of Timor Leste...... 22 Figure 12 Tsunami Risk Areas in Timor Leste ...... 22 Figure 13 Drought Hazard Map in Timor Leste ...... 23 Figure 14 Seismicity Map of Timor Leste ...... 24

Figure 15 Climatic Zones of Timor Leste ...... 25 Figure 16 Hydrogeologic Map of Timor Leste ...... 26 Figure 17 Water Sampling Sites in Baucau District ...... 27 Figure 18 Amphibians Sighted Around Baucau ...... 32 Figure 19 Baucau Catchment Area ...... 33 Figure 20 Rice Paddies in Baucau District ...... 34 Figure 21 Traditional House in the District of Baucau ...... 37

Tables Table 1 Procedural Steps in Acquiring Environmental License of Project/s under Category B ...... 4 Table 2 Implementation Schedule ...... 14 Table 3 Water Quality Standard of WHO/Timor Leste relevant to the Project ...... 28 Table 4 Water Quality Test Results ...... 29 Table 5 List of Watershed Areas ...... 33 Table 6 Samples of Project Anticipated Environmental Impacts and their Corresponding Mitigating Measures 39

Acronyms

ADB Asian Development Bank

AWRF Australian Water Research Facility

CDU Charles Darwin University

DAA Departemento Abastecimento De Agua Em Distrito

DNCQA National Directorate for Water Control and Quality

DoE Directorate of Environment

EMP Environmental Management Plan

GISD Global Invasive Species Database

GoTL Government of Timor Leste

IEE Initial Environmental Examination

INC Initial National Communication

MAFF Ministry of Agriculture, Forestry and Fisheries

MED Ministry of Economy and Development

NDWRM National Directorate on Water Resources Management

NDWSS National Directorate of Water Supply and Sanitation

NGO Non-Government Organization

PCB Polychlorinated Biphynels

PCO Pollution Control Officer

PMU Project Management Unit

SIDA Sweden International Development Agency

TA Technical Assistance

TL Timor Leste

UNFCC United Nation Framework Convention on Climate Change

UNCBD United Nation Convention on Biological Diversity

UNICCD United Nation Convention to Combat Desertification

USAID United States Agency International Development

USDA United States Development Agency

WHO World Health Organization

I. Executive Summary The Second District Capitals Water Supply Project of the Baucau District (46160-001) TA-8064 TIM is an improvement and upgrading of existing water supply system which is subject to environmental regulatory framework which is still being developed by the National Directorate of Environment (DoE) under the auspices of the Ministry of Economy and Development, and supervising the implementation of the environmental impact assessment processes and providing technical inputs to all project proponents. According to GoTL’s environmental policy, the upgrading and rehabilitation of an existing water supply system is under Category B of the Decree--‐Law No. 5 / 2011 of 9 February known as the Environmental Licensing Law.

An Initial Environmental Examination (IEE) has been carried out for the proposed project in accordance with ADB’s Safeguards Policy Statement (2009) and the Government of Timor Leste environmental requirements and guidelines. The IEE was undertaken is consistent with ADB’s environmental safeguard requirements of the Safeguard Policy Statement (2009).

The proposed project is an all-inclusive infrastructure upgrade project to be implemented in the District of Baucau, Timor Leste. The project will comprise the following: . Water supply infrastructure improvements – to include a staged program for augmenting existing water supply infrastructure to meet the anticipated requirements for the town water supply systems to 2030. This will include substantial new infrastructure from source development to transmission, storage and distribution facilities; . Improved operation and management – to include (a) the introduction of a tariff system for water users, and community engagement and empowerment activities and sanitation component comprise of: (1) household sanitation program support; (2) school sanitation and public toilets facilities; (3) septic tank sludge management which includes (3.1) treatment and disposal facilities and (3.2) sludge collection and transport services; (b) a new approach to operation and maintenance aimed at ensuring the sustainable management of the upgraded water supply systems through the use of public private partnerships for day to day operation and maintenance; and . Community consultation and technical assistance activities in support of implementation. The activities under this component are those which are not so directly related to the infrastructure and operation and management components, or are more focused on overall sector capacity building. With all the enumerated infrastructure components, a total of US$75.77 million will be the estimated project cost (for Phase 1 only).

This IEE will mainly focus on the environmental assessment of all the infrastructure components mentioned above – from the source intake up to household line connections.

Baucau is located 129 kilometers East of Dili, Baucau covers 1,600 square kilometers of land and serves as a gateway for the neighboring districts of Lautem, Viqueque and Manatuto. The District is divided into six sub-districts: Baucau, Laga, and Vemasse with a coastal plain, while Venilale, Quelicai, and Baguia are located inland.

Baucau has a tropical monsoon climate with annual precipitation of approximately 1,200mm that mostly occurs during the annual wet season from November to April, and an average annual temperature of about 24oC, a more moderate temperature than most of the districts. There is little temperature variation on either a diurnal or a seasonal basis. Temperature variations mainly occur with altitude. Average annual temperatures decrease from 27 ºC at sea level to 24 ºC at 500 m; 21 ºC at 1 000 m; 18ºC at 1 500 m and 14ºC at 2 000 m. Relative humidity varies between 70 and 80

percent, which makes the climate humid in general, but pleasant (MAFF, 2004). And the annual average rainfall in Baucau is 1,500mm to 2,000mm.

The surface water and/or rivers in Baucau are Laleia and Manuleiden, in the west of the district, flow to the north into the Wetar Strait. Another rivers Seiçal, Borauai, Lequinamo, Binagua and other small rivers are to the east of the city of Baucau; only the Seiçal has water all year round.

The main water source of Baucau is the Wailia spring which is found at the center of the old town. There are few other springs of similar yield to Wailia within the district. Below Baucau urban area towards the sea, rural sucos are well supplied by two springs through gravity system. Another spring called Caibuiloro is located some 15 km southwest of the town center. This water source was used to supply part of the town’s water requirement, but for unknown reasons, this is no longer used. Another staff member of DNCQ said that a very large source in the Uailiabere area which has high volume of water, enough to supply the need of Baucau.

With the implementation of the project, the environmental quality of the project site and its nearby areas will have negligible negative impacts given the nature, scale and duration of the project components mentioned above. These insignificant adverse impacts will be minimized given the recommended appropriate mitigating measures as identified and enumerated in the EMP of this IEE will be adopted and implemented.

As envisioned, the project is expected to alleviate the district’s populace from their present economic condition where people will be opened to economic activities with an influx of investors. The whole district will have 24/7 access to clean and potable water, therefore, health condition, sanitation and hygiene practices of the people will improve

There were several public and/or stakeholders consultation conferences held and conducted as per ADB’s requirement as stipulated in the Environmental Safeguard Policy Statement of June 2009. The stakeholder’s consultation conference regarding the environmental aspect of the project was conducted on March 24 - 25, 2015. The main purpose of the consultation meetings conducted were: (1) to present the proposed project, (2) solicit issues and concerns from the people regarding the project and their existing water supply and the anticipated environmental impact of the proposed project, and (3) to gather people’s opinion on how to improve their water supply system. Furthermore, it was also discussed and agreed during the consultation meetings regarding the mechanisms on how to resolve the unforeseen concerns, issues and problems that might arise during the project implementation be resolved to avoid stoppage on project implementation.

As to the supervision, management and monitoring of the project implementation, there should be a Project Management Unit (PMU) as discussed and suggested in Section IX.D of this IEE on who will be in-charge on the over-all project implementation.

On project sustainability, the stakeholders during the consultation meeting verbalized and were amenable to undertake maintenance activities without compensation for as long as they will have a 24/7 water supply services in their households. For life long and sustaining groundwater and/or spring sources like Wailia and other springs surrounding Baucau, the project stakeholders were agreeable to have a regular tree planting program in their forest and watershed areas for a more wider recharge area of the aquifer, regulate tree cuttings, avoid forest animal killings and plant pouching. This IEE is suggesting (as reflected in the EMP) for the project proponent (NDWSS, DNCQ, DAA) to come up with an Integrated Water Resources Management Program.

II. Policy, Legal, and Administrative Framework A. Environmental Regulatory Compliance Decree Law No. 26 /2012, 4th July is the Basic Environmental Law of the Government of Timor Leste which originated from the Constitution of the Democratic Republic of Timor-Leste faces environmental protection a double perspective, considering it as a major task of the state and, simultaneously, as a fundamental right of citizens. Thus, Article 6 of the Constitution states that one of the fundamental objectives of the state's environmental protection and preservation of natural resources. Article 61 turn, reiterating that objective and specifying that the State should promote actions to protect and safeguard the environment recognizes, on the one side the right of all citizens to a human living environment healthy and ecologically balanced specifying, on the other, a duty incumbent on all preservation and protection of the environment for future generations. Likewise, Article 139 stresses the need for exploitation of natural resources to be made in order to maintain ecological balance and avoid the destruction of ecosystems.

The chapters, provisions ad sections of the law which defines and has relationship with environmental assessment are as follows: in letter d of chapter 1 states that the Strategic Environmental Assessment: is the preventive instrument of environmental policy, supporting the analysis and prediction of potential impacts of policies, strategies and plans in the environment with the purpose of making decisions about their environmental viability; letter o of same chapter, Environmental impact: a set of positive and negative changes produced in the environment, the environmental and social parameters or their habitats comprising people and their economic and social structures, air, water, fauna, flora, in a given period time and in a particular area, resulting from the execution of a project, compared with the situation that occurred in this period of time in this area, if the project was not implemented; Article 2 of chapter 1 sets out the basis of environmental policy, the guiding principles for conservation and environmental protection and conservation and sustainable use of natural resources in order to promote the quality of life of citizens. Under Article 5, letter c of the guiding principles is the Principle of Prevention: where programs, plans and projects with environmental impact must anticipate, prevent, reduce or eliminate the causes priority to remediate the effects which may alter the quality of the environment; and chapter II identifies the responsible entities in the implementation of the law such that: Article 9 identifies who is the government department responsible for the environment shall, in accordance with the principle of integration, establish a central institutional structure responsible for coordinating with other public central, district and local policies, programs, plans or projects with significant effects on environment; Article 10 the collaboration with public entities referred to in the preceding paragraph have the duty to collaborate and cooperate with the government department responsible for the environment, as the implementation of environmental policy in order to ensure the unity and uniformity in its application; Article 11: Community authorities, that the State shall encourage the involvement of the community in conservation and environmental protection and conservation and sustainable use of natural resources and their involvement in decision-making and in environmental activities; and Article 12: The State recognizes the importance and promotes the participation of local communities and vulnerable groups, alone or in combination with membership organizations in the definition, implementation and monitoring of environmental policy and environmental decision-making processes.

B. Environmental Clearance Requirements The Chapter III section I, Articles 13, 15 and 16 of the Basic Environmental Law of GOTL paved the way to the formulation of Decree--‐Law No. 5 / 2011 of 9 February which is known as the Environmental Licensing (Annex 1). This licensing law sets the procedures for licensing of public and private projects that are likely to produce environmental and social impacts. It defines the

categories and types of Environmental Assessment procedures, the protection of customs and traditions, respect for traditional land use. It also defines the Protected Area, Environment Assessment, Environmental Impact and Categories A,B (Annexes 2& 3) and C. Article I contains the definition of Protected Area, Environmental Assessment, Classification categories of Projects, Environmental Impact, Environmental Assessment instruments, Environmental License and Pollution. Article 4 defines the Categories and Type of Environmental Procedures for Categories A, B and C and the Environmental Management Plan. Article 8 defines the procedural steps for environmental licensing of Project classified as Category A and the procedures for environmental Impact Assessment required. Chapter VI of the Decree Law No. 5/2011 of 9 February, refers to procedural steps for the environmental licensing of projects classified as Category B and the required procedure for the Initial Environmental Examination (IEE). Article 22, refers to the type of environmental license; and Article 33 refers to the duty of license holder on monitoring and reporting based on the provisions of the Environmental Management Plan (EMP).

Since the project is under the classification as Category B, the procedural steps are discussed, explained and illustrated in Table 1 as follows:

Table 1 Procedural Steps in Acquiring Environmental License of Project/s under Category B PERSON/S or ENTITY PROCEDURAL STEPS LIST OF REQUIREMENTS TIME FRAME RESPONSIBLE Procedural Steps (Article 17) – For the purposes of environmental licensing, projects classified as Category B, are subject to a procedure Initial Environmental Examination (IEE) and allocation of environmental license, which includes the following phases: a) Project Presentation and Request for Environmental License; b) Technical analysis and opinion from the Environmental Authority; c) Decision on the Initial Environmental Examination and Environmental Grant of License. A. Project Presentation 1. Project proponent to submit Environmental Authority (Article 18) the following documents: and Project Proponent a) Name of the applicant and their identifying information and contact details; b) The location and scale of the project; c) The plans and technical drawings of the project; d) Technical study on the feasibility of the project; e) Opinions and other documents on the project issued by other entities; f) Environmental Management Plan (EMP); g) Application for grant of Environmental license. 2. The information and documentation referred to in the preceding paragraph are presented in proper form and manner prescribed in secondary legislation. 3. The proponent must prepare an EMP in accordance with the provisions in paragraph 2 of Article 4 in accordance with relevant legislation. 4. In tabling the documents, the proponent must settle the rate of the phase of Environmental

PERSON/S or ENTITY PROCEDURAL STEPS LIST OF REQUIREMENTS TIME FRAME RESPONSIBLE Assessment simplified defined in statute. 5. In the event that the Environmental Authority requires for a public consultation for a proponent, which shall be held to discuss issues about the project. B. Technical Analysis and Environmental Authority (EA) 30 days from filing Environmental Authority Evaluation (Article 19) may request for an additional date of the project information and clarification; documents Redesign EMP based on Technical Analysis. If applicant disagrees with the 10 days to review Environmental Authority request of Environmental new documents and Project proponent Authority, as provided in until the completion paragraph 3 of this Article 19, of the period of it must justify its reasons and 30days provided submit them in writing to the that the number of Environmental Authority days remaining is not less than 10 days Endorsed by the Environmental Authority Environmental Authority to and Higher Higher Environmental Environmental Authority Authority, based on documentary evidence submitted by the proponent and the conclusions of the technical review of Environmental assessment, and proposed that: a) the EMP is recommended for approval; or b) the EMP is not recommended because of the negative environmental impacts outweigh the benefits. C. Decision on the Initial 1. It is for the Superior Within 10 days Superior Environmental Environmental Environmental Authority, the from the date of Authority and Examination and Grant of final decision of the receipt of technical Environmental Authority license. (Articles 20 and Environmental Assessment advice by the 21) simplified procedure, based Environmental on technical advice from the Authority Environmental Authority, in accordance with this law; 2. The decision of the Superior Environmental has the following wording: a) Approval of the EMP and authorization to issue the environmental license of the project, or b) No approval of the EMP and the procedure for licensing of the project is terminated. 3. In the case of paragraph a) above, the decision should establish the conditions and restrictions deemed

PERSON/S or ENTITY PROCEDURAL STEPS LIST OF REQUIREMENTS TIME FRAME RESPONSIBLE necessary to protect the environment and should be part of the environmental license. 4. The decision referred to in the preceding paragraph is made by order and within 10 days from the date of receipt of technical advice by the Environmental Authority and published in the Official Gazette.

Environmental License and 1. As a result of the order in Superior Environmental Types of Environmental favor of Superior Authority License (Chapter VII, Article Environmental Authority are 22) two types of licenses issued under the category of project, including the Environmental License for Category A and Category B Environmental License; 2. Depending on the type of license, are an integral part thereof, the following documents: a) Category A – Environmental Impact Statement and Environmental Management Plan; b) Category B – Initial Environmental Examination and Environmental Management Plan 3. The format and content of the environmental license in Category A and B will be in a diploma supplement; 4. The Environmental License is not transferable to another project belonging to the same proponent or a different proponent; 5. For projects of category C the Environmental Authority supports the tenderer to maintain environmental management. Issuance of Environmental 1. The Environmental Authority Issuance of license Environmental Authority License (Article 23) is the entity responsible for is 10 days after the issuing the environmental order of the license. authority referred 2. The deadline for issuing a to in paragraph 1 license is 10 days after the of the preceding order of the authority referred articles. to in paragraph 1 of the preceding articles. 3. The tenderer shall be notified thereof in writing within 5 days after the deadline set in the previous paragraph.

PERSON/S or ENTITY PROCEDURAL STEPS LIST OF REQUIREMENTS TIME FRAME RESPONSIBLE 4. The proponent must pay the fee for environmental license in accordance with the provisions of relevant legislation and within 10 days after receipt of the notification. However, project officers are exempt from environmental license. 5. No project can proceed to implementation without having the final decision of the evaluation procedure adopted, the issue of environmental license and payment of the environmental license, in accordance with the provision of this Decree --- -- Law. Duration and Renewal of 1. The Environmental License 2 years duration of Environmental Authority Environmental License for projects of category A and the Environmental and Project Proponent (Article 24) B have a duration of 2 years License renewable is renewable for equal period for equal period to complete the Environmental deactivation phase of the project. 2. The renewal is automatic upon payment of the renewal fee in accordance with the provisions of relevant legislation, and if not fulfilled the conditions laid down in Article 25.

C. Occupational Health and Safety Labor Law No. 4/2012 of 21 February. This Labor Law provides for the regulations on labor relations applicable to individual and collective labor relations. Of specific interests are Articles 6 on Principle of Equality, Articles 19, 20 and 21 on Mutual duties and responsibilities of employee and Workers, Article 34 on Occupational Security, Hygiene and Health, Article 35 on General obligations of the employer to ensure dignified conditions for occupational security, hygiene and health, Article 68 on Minimum Age for Work Admission, Article 69 on the definition of light work, and Section 3, Article 71 on Workers with Disabilities. D. International Conventions Internationally, the GoTL has joined and approved a number of international conventions, such as the United Nations Framework Convention on Climate Change (UNFCC, Parliament Resolution No. 7, 2006 of 26 April. Approved on 11 April and Published on 20 April, 2006) and the Kyoto Protocol, the International Convention to Combat Desertification (UNCD, Parliament Resolution No. 8, 2008); the United Nations Convention on Biological Diversity (UNCBD, Parliament Resolution No. 9, 2006); the Vienna Convention for the Protection of the Ozone Layer and its Montreal Protocol. It is recognized, therefore, the responsibility falls on the state of implementation of the obligations under these international instruments. The adoption of the Law on the environment is therefore necessary to establish a legal framework that responds to the constitutional imperative of environmental protection and simultaneously international responsibilities assumed by the state.

E. Other Relevant Safeguards Asian Development Bank Safeguards Policy Statement (2009)1

This safeguard policies are generally understood to be operational policies that seek to avoid, minimize, or mitigate adverse environmental and social impacts, including protecting the rights of those likely to be affected or marginalized by the development process. ADB’s safeguard policy framework consists of three operational policies on the environment, Indigenous Peoples, and involuntary resettlement. These are accompanied by Operations Manual sections on Environmental Considerations in Resettlement and Environmental Assessment Guidelines (2003) provide information on good practice approaches to implementing safeguards. In addition to the three safeguard policies, several sector policies have environmental safeguard elements, for example, those pertaining to water, energy, and forestry.

III. Description of the Project The Second District Capitals Water Supply Project (46160-001) TA-8064 TIM, is mainly to rehabilitate the existing water supply system in the four districts (Same, Viqueque, Baucau and Lospalos). The project will ensure to address the badly needed infrastructure improvements with the following objectives: (1) to increase the capacity of the water supply systems (in stages) to meet 2030 requirements and on 24 hour supply; (2) ensuring that safe water supply can be provided to consumers through the introduction of disinfection facilities; (3) simplifying systems and reducing leakage through the decommissioning and removal of assets which have reached the end of their economic life; and (4) implementing a metered consumer connection system which will support the introduction of an appropriate consumer tariff system for water services to all consumers.

As a result of the four (4) districts water supply systems assessment, it indicated the scope of the Water Supply components of the project are as follows: . Water supply infrastructure improvements – to include a staged program for augmenting existing water supply infrastructure to meet the anticipated requirements for the town water supply systems to 2030. This will include substantial new infrastructure from source development to transmission, storage and distribution facilities; . Improved operation and management – to include (a) the introduction of a tariff system for water users, and community engagement and empowerment activities and sanitation component comprise of: (1) household sanitation program support; (2) school sanitation and public toilets facilities; (3) septic tank sludge management which includes (3.1) treatment and disposal facilities and (3.2) sludge collection and transport services; (b) a new approach to operation and maintenance aimed at ensuring the sustainable management of the upgraded water supply systems through the use of public private partnerships for day to day operation and maintenance; and . Community consultation and technical assistance activities in support of implementation. The activities under this component are those which are not so directly related to the infrastructure and operation and management components, or are more focused on overall sector capacity building.

1 The Environment Policy contains five main elements, but only the fifth is concerned with the environment as a safeguard issue (Integrating Environmental Considerations in ADB Operations, paras. 30 and 50–70). ADB. 2003. Operations Manual. Section F1: Environmental Considerations in ADB Operations. Manila. ADB. 2003. Operations Manual. Section F2: Involuntary Resettlement. Manila. ADB. 2003. Operations Manual. Section F3: Indigenous Peoples. Manila.

A. Existing Water Supply System in Baucau The different component structures and facilities of Baucau existing water supply system as described: . Source. Wailia Spring. Large spring – part of a complex of springs emerging from limestone aquifer located near old town centre. . Source Capacity. Inadequate in the current town population even if water losses are reduced. Capacity varies seasonally with reliable yield for pumps about 25L/s. Capable of about 40 L/s on seasonal basis (dry season). Additional capacity is available for gravity flow. There are some resource allocation issues with traditional users downstream. . Water Quality. Significant risk of bacterial and incidental chemical contamination from upstream urban activity. Sampling and testing was undertaken for this report. Key results include: (a) Coliform contamination found in both recent Wailia Spring samples. (b) Physical and chemical quality is excellent except for high total hardness. . System Type. Pumped and gravity. Pumped system covers some 7 of the 8 zones with only Zone 3 supplied by the gravity system. Zone 3 contains about 14% of the total registered connections. . Treatment. None. No functional chlorination system. Previous attempts at chlorination were rejected by community. . Reservoirs. Main storage at Adarai comprises 3 separate reservoirs total volume 600 m3 (100 m3, 300 m3, 200 m3). Smaller reservoirs are Telkom, Tirilolo and Samadiga (never used due to lack of water). In addition there are small tanks associated with pump stations at Wainiki and Lamegua. . Pump Stations. Main pump station at source (Wailia). Pumps to Wainiki, 2 units, 25L/s duty/standby configuration. One pump is currently out of operation. Pumps to Lamegua, 2 units, 12.5 L/s duty/standby configuration. Wainiki booster pump station to Adarai, 2 units, 25 L/s, duty/standby configuration. Lamegua pump station. 2 units, 4.5 L/s, duty/standby configuration. Tirilolo pump station. 1 unit recently installed (2013) but not yet commissioned, 8 L/s. Pumps direct to distribution system. Capacities are theoretical based on manufacturer’s data. . Power Supply. Mains power is used but there is standby genset capacity available in Wailia and Wainiki. There is no payment made for electricity and no record of the potential cost has been able to be obtained . Transmission and Distribution Pipelines. Extensive pipe network of largely galvanised steel pipelines, many constructed above ground. Varying age and condition. Most are thought to be from the period of Indonesian administration. . System Operation. Intermittent supply 6 days a week. No Sunday operation. System hours vary seasonally. Reportedly about 11 hours in January to April and 16 hours in July to December. Pumping to various zones is rotated because of source capacity constraints. Some areas visited at the extremities of the distribution system receive only 1 or 2 hours supply about twice a week. . Registered Connections. There are 1537 of which 1384 or for domestic use. This is only 32% of the estimated number of houses in the urban area (2014). Illegal connections are reportedly numerous and include 2 bottled water plants, a car wash and masonry block plant. There is a dedicated gravity supply to one hospital but the supply is compromised by leaks and illegal connections. . Metering and billing. No consumer metering or billing system. No bulk meters operating. . Leakage/Unaccounted for Water. Very high leakage in all towns. Cannot be assessed because of the lack of both bulk and consumer meters. Leaks can be readily found by walking around the distribution system during operating periods. Most likely to be greater than 50%. Most leakage is from faulty or broken consumer connections and permanently open taps in houses and yards. Potentially high static operating heads in gravity systems could promote leakage losses if the current zoning systems are not improved as leakage is reduced. This is particularly the case in Same and Baucau.

. Alternative Sources. Vendors are used by many consumers as the main source and also to supplement inadequate supply from public system. Cost is $12 for 5 m3. Higher unit costs for smaller volumes. Unprotected and protected springs are also by many as their main source of supply. Rainwater collection is used as a supplementary source by many. . System documentation including plans and asset registers. Very little available in district. Documents reportedly lost during a fire in 2006 and because of the death of the previous DAA manager. B. Proposed Improvement/Upgrading of Water Supply System in Baucau The development of a comprehensive concept for Baucau is constrained by the lack of a confirmed new water source. During 2014 and the first half of 2015, DNCQA with support from BESIK and international specialists, undertook the planning and implementation of extensive water resource investigations. This culminated in the drilling of a number of test bores, one of which was in a prospective location for a production bore for the future Baucau water supply. Unfortunately this was not successful. The reasons are complex but the expectation of water being stored in depressions in the underlying clay strata seem to have been incorrect. The likelihood is that water is found in fissures and tunnels through the limestone and to successfully abstract water it seems essential to intersect these areas. This has proved challenging to date. The outcome of the current investigations in the master plan process.

The concept subsequently developed for Baucau is shown in Figure 1 (plan) supported by Figure 2 (system schematic) and implementation schedule is shown in Table 2. The key features of the concept are as follows: . New groundwater source on the Baucau plateau: The location and nature of the source remains to be determined by further groundwater investigations but for the purposes of this master plan it is assumed that a bore field will be developed on the Baucau plateau in the general vicinity of the airstrip or to the east or north east thereof. . Bulk water tank (BWT): The BWT is assumed to be located at an appropriate elevation (535 m) to the east of the airstrip close to the site of the recently failed DNCQA exploration bore. The elevation of this site will command all of the Baucau urban area by gravity. . Reservoirs: The key considerations for the proposed reservoirs are location/elevation and capacity. reservoir location and elevation is largely a function of the topography. Capacity is related to the demand from the supply zone served by the reservoir. It is clear from initial assessments that the size of the existing reservoirs are tiny relative to the required capacity, and that the existing reservoir sites cannot accommodate the larger capacity reservoirs. Consequently the sites for all reservoirs will be new even if they are located in a similar area to the existing ones. . Zoning: A careful review of the zoning indicates that the New Town area which is currently supplied by the Telkom reservoir really requires an elevated tank in order to meet the minimum supply pressure criteria. The best approach is to split the New Town area into two zones supplied by one elevated tank and one ground level tank respectively. The other supply zones will be structured around the new reservoirs located in the general vicinity of the existing ones at Adarai, Tirilolo, Wainiki and Lamegua. An additional reservoir is required in the lower Baucau to serve the area currently supplied by gravity from Wailia to the northwest and north east of the Old Town area. Minor adjustments are proposed to some reservoir elevations to optimise the pressure distribution in the relevant zones. . Transmission mains: The Adarai Tank and the proposed new tanks in the New Town area (elevated and ground level) will be supplied by separate gravity transmission mains from the BWT. The remaining reservoirs will be supplied by gravity from the Adarai and New Town (ground level) tanks with transmission mains essentially encircling the town to the east and west. . Distribution system: The distribution system augmentation requirements has not been considered in detail for Baucau at this stage because of the water resource uncertainties. However some

analysis of the individual zones has been undertaken in order to understand the topography in more detail and the implications for supply pressures. It is clear from this analysis that there will be a need for separate pressure subzones in some of the zones in order to keep supply pressures within limits. This will be achieved through the use of BPTs. The key details of the proposed zoning arrangement is shown in Table 2-10 of the Baucau Masterplan.

Figure 1 Map of Baucau Water Supply

Figure 2 Schematic Diagram of Baucau Water Supply System

Table 2 Implementation Schedule

IV. Description of the Environment A. Physical Environmental Situated 129 kilometers East of Dili, Baucau covers 1,600 square kilometers of land and serves as a gateway for the neighboring districts of Lautem, Viqueque and Manatuto. The District is divided into six sub-districts: Baucau, Laga, and Vemasse with a coastal plain, while Venilale, Quelicai, and Baguia are located inland.

Figure 3 Baucau District Map

A.1. Geographical Location Its north edge is to the Wetar Strait, opposite the island of Wetar; it also borders the districts of Lautém to the east, Viqueque to the south, and Manatuto to the west.

The district has an area of 1,507.95 km2 (582.22 sq mi). The largest part of the district lies at an altitude between 100 and 500 m (330 and 1,640 ft). The town of Baucau, which lies at about 512 meters above sea level.

Figure 4 Location of Baucau in Timor Leste

A.2. Topography The highest mountain of the district, and the third highest in East Timor, is Matebian, with 2,316 m (7,598 ft) high; it is located in the Quelicai sub-district. The different mountain ranges have an altitude (expressed in meters) with corresponding area in square kilometers as described below:

Altitude in meters Area in Sq. Km 0-25 132 26-100 164 101-500 620.94 501-1000 272 1001-2000 135.96 2001-3000 - Total 1,324.91

A.3. Geology and Soils Geology

Historically, the Timor Island was formed by a collision complex between the Australian continent and the Banda Arc subduction systems which occurred during the late Miocene-Pliocene, and has resulted in metamorphism, particularly the Alieu formation. The collision has resulted in the formation of chaotic folds and faults. The collision zone is considered to be active resulting in ongoing faulting and folding in the Pleistocene and pre-Pleistocene rocks, and gentle tilting on the younger deposits. Unlike many neighboring islands that are derived from volcanic rock, Timor-Leste is derived from limestone and metamorphosed marine clays. In the north, the uplifted coral reef stretches along the coast, and is characterized by typical limestone karst topography.

These features combine to locate most easily accessible groundwater around the coastline, with older limestone forming discrete inland aquifers.

Soils

Soils are the thin layer covering the entire earth's surface, except for open water surfaces and rock outcrops. The properties of soil are determined by environmental factors. Five dominant factors are often considered in the development of the various soils: (a) the climate, (b) parent materials (rocks and physical and chemical derivatives of same), (c) relief, (d) organisms (fauna and flora), and (e) the time factor. There are a large number of different soils, reflecting different kinds and degrees of soil forming factors and their combinations (Figure 5). The soils of Timor-Leste, ‘Ultramar’, in Portuguese times, were mapped in the early 1960’s using aerial photographs at an average scale of 1:40,000, backed up by intensive field mapping. The maps produced are currently available at a scale of 1:100,000 and it was this data which was digitized and updated by ALGIS in 2004. In 2004 the original Portuguese soil classification was amended to reflect the most widely used USDA (1990) classification. The soil map of Timor-Leste, below, displays soil Sub-Orders:

Figure 5 Soil Map of Timor Leste Source: Geology and Soils. S.J. Thompson, Dec. 2011

A.4. Climate and Meteorology Baucau has a tropical monsoon climate with annual precipitation of approximately 1,200mm that mostly occurs during the annual wet season from November to April, and an average annual temperature of about 24°C, a more moderate temperature than most of the districts.

Figure 6 Mean Annual Rainfall of Timor Leste

There is little temperature variation on either a diurnal or a seasonal basis. Temperature variations mainly occur with altitude. Average annual temperatures decrease from 27 ºC at sea level to 24 ºC at 500 m; 21 ºC at 1 000 m; 18ºC at 1 500 m and 14ºC at 2 000 m. The Relative humidity varies between 70 and 80 percent, which makes the climate humid in general, but pleasant (MAFF, 2004).

Figure 7 Mean Annual Temperature of Timor Leste

Figure 8 Average Daily Minimum Temperature Source: Agriculture and Land-Use Geographic Information System Project, 2007

Figure 9 Average Daily Maximum Temperature Source: Agriculture and Land-Use Geographic Information System Project, 2007

Air Quality and Noise Level

No measurement have been made of the air quality and noise level within the project site. However, it was observed that sources of air pollution is coming from unpaved road and due to road traffic, it puffs the dust elsewhere within the district.

At present there are no industry that produce noise in the district. Noise caused by the road traffic are insignificant since there are only a few vehicles that traverses the unpaved road network of the project site.

Current Climate and Its Related Hazards

The main climatic hazards in Timor Leste are floods, landslides and tropical cyclones, with drought a hazard in the North of the country. Temperatures are high and vary little with seasons, with annual averages around 24 degrees Celsius at sea-level, which decline as altitude rises in the mountain range which runs down the centre of the island. Precipitation increases from North to South, as the south benefits from rains from the SE monsoon as well as the NE Indonesian monsoon. El Niño events cause drought in Timor Leste, for example the 2007 El Niño contributed to a 30% reduction in cereal yields in the country (The official government website for Timor Leste). The different maps shows and describes the area prone to the different hazards: . Flood. Occurs as flash-flooding when heavy seasonal rain higher in catchment basins converges in tributaries as it descends, resulting in rapid rise of discharge in the water courses. The areas where water accumulates in lowland or upland floodplains when river banks have insufficient capacity to contain and/or hold the flow.

Figure 10 Flood Map of Timor Leste

. Landslide. Are movements of rocks and soil downward of a slope, often with very destructive force. Landslides are driven by gravity and important contributing factors include slope stability and water content. They are often triggered by heavy rainfall and/or runoff and are more common in areas where the vegetation providing stability and reducing the speed of runoff has been degraded. The map describes the distribution of landslide hazard across the country and categorize the hazard into five levels (very high, high, medium, low and no-data). It shows that the eastern half of the country has almost all the areas of “very high” and “high” landslide hazard, based on the available data.

Figure 11 Landslide Map of Timor Leste

. Tsunami Risk. A wave of destructive power where it needs a stretch of shoaling where the waves can grow in amplitude. It is therefore important to investigate where around Timor the underwater gradient is sufficiently gradual to cause the shoaling effect. The greatest destructive tsunami hazard occurs along the stretch of coast where the underwater gradient is lowest and the shoaling stretch is longest.

Figure 12 Tsunami Risk Areas in Timor Leste

. Drought. This is the degree to which rainfall in dry years is different from normal years, measured by the ratio of the rainfall in driest 10% of years to the normal (median) rainfall. However, that degree of detail cannot be obtained from the limited data available for Timor- Leste at present. Instead, a drought hazard map was produced by combining the annual rainfall map with the groundwater occurrence map. The map shows three classifications of drought affected areas within Timor-Leste; high, medium and low.

Figure 13 Drought Hazard Map in Timor Leste

. Other Hazards and Risks Tropical Cyclone. Annually Timor Leste is visited by tropical storms. These tropical storms can be as devastating as a cyclonic activity as they can bring extremely high amounts of rainfall in short time periods. Earthquake Hazard. While it is not possible to predict the exact location or intensity of likely earthquakes can occur, it is possible to calculate the expected return period for earthquakes within various intensity ranges. Past studies on likelihood of earthquake damage to locations in the Pacific Rim put Timor in classification VIII1. This classification indicates that the country is exposed to earthquakes with intensities classified as “Destructive”2 and which could cause significant damage to properties and loss of life. The classification also indicates a 20% probability of exceeding level VIII and experiencing a “Ruinous” to “Catastrophic” intensity earthquake within a 50 year period.

Figure 14 Seismicity Map of Timor Leste

Climate Change and its Effect to Groundwater Resources

At a global scale, climate change will have a range of impacts, including changing rainfall amounts and distributions, altering seasonal patterns, sea level rise and increased extreme weather event intensity (Barnett et al., 2007; Kirono, 2010; Australian Bureau of Meteorology and CSIRO, 2011).

Based on the vulnerability assessment done by Geoscience Australia which was then built by Charles Darwin University (CDU; separate accompanying report, Myers et al., 2012) on Timor Leste’s groundwater resources, the two Climate Change hazards with potential impact on groundwater are: (1) changes in rainfall pattern and (2) sea level rise. While little change is predicted for total annual rainfall, the predicted prolonged dry season will place additional pressure on groundwater by extending the period of groundwater stress. The estimated sea level rise of 9 mm per year is much greater than the average tectonic rise of Timor of 0.5 mm per year. Increase in sea level is likely to cause seawater to move landward and intrude into aquifers.

Furthermore, the Geoscience Australia proposed to Timor Leste some potential priority adaptation measures to reduce groundwater vulnerability: a) Targeted groundwater monitoring program; b) Capacity building, education and training; c) Integrated groundwater and surface water management using an adaptive management approach; d) Develop policies and legislation; e) Develop institutional and human capacity; f) Manage aquifer recharge; g) Land use change; and h) Build environment friendly infrastructure

Figure 15 Climatic Zones of Timor Leste Source: ARPAPET, 1996; DURAND, 2006

A.5. Water Resources The hydrology of the Baucau Limestone is relatively simple and follows the local hydrological cycle. Rain falling over the limestone plateau readily enters the exposed karst2 limestone through highly permeable weathered rock surface or the thin red soils. The karst limestone is considered to have a two-phase flow system. The initial phase of flow is through the primary porosity of the limestone. A second phase of flow is through secondary karst features of sinkholes, dolines, caves and enlarged fractures. Discharge from the limestone is diffuse through the boundary of the formation and also concentrated in large springs connected to the secondary porosity features. Discharge in major springs is in the range of 1 – 200 liters per second.

2 Karst: An area of irregular limestone in which erosion has produced fissures, sinkholes, underground streams, and caverns. [German, after the Karst, a limestone plateau near Trieste.]

Surface Water or River in Baucau

The rivers Laleia and Manuleiden, in the west of the district, flow to the north into the Wetar Strait. The rivers Seiçal, Borauai, Lequinamo, Binagua and other small rivers are to the east of the city of Baucau; only the Seiçal has water all year round.

Groundwater & Spring of Baucau

The main water source of Baucau is the Wailia spring which is found at the center of the old town. There are few other springs of similar yield to Wailia within the district. Below Baucau urban area towards the sea, rural sucos are well supplied by two springs through gravity system. Another spring called Caibuiloro is located some 15 km southwest of the town center. This water source was used to supply part of the town’s water requirement, but for unknown reasons, this is no longer used. Another staff member of DNCQ said that there is a very large source in the Uailiabere area which has high volume of water, enough to supply the need of Baucau.

Figure 16 Hydrogeologic Map of Timor Leste

Water Quality

This section covers the sampling procedures in gathering the water samples for physical, chemical and bacteriological tests in Manufahi, Viqueque, Baucau and Lautem in May 2014. a) Sampling Sites Within the existing water source/s where direct impacts of the project is expected were identified and seven (7) sampling stations were established as described and indicated in Figure 17.

Figure 17 Water Sampling Sites in Baucau District

b) Water Parameters For the physical test, there were seven (7) parameters of water quality that were identified to be gathered in all seven (7) stations, they are: pH value, E. Conductivity, TSS, TDS, Salinity, Temperature and Turbidity.

For chemical test, there were twelve (12) parameters of water quality that were identified to be gathered in all seven (7) stations, they are: NH3- N, NO3-N, NO2- N, Iron (Fe), Manganese (Mn), 2 Fluoride, Free chlorine, Ca hardness, Arsenic, T. Hardness, Total alkalinity and Sulphate (SO4 ).

For bacteriological test, there were two (2) parameters of water quality that were identified to be gathered in all seven (7) stations, they are: Total Coliform and E. Coli. c) Instruments used and data gathering procedures Grab sampling was used in the collection of water samples. Prior to sampling, sterilized sampling bottles were properly labeled. The labels contain the sample number and sampling station. A 100ml sterilized bottles were used in the collection of water samples at any time and flow condition. The sterilized bottles were handled carefully so that microbes will not contaminate the same. For microbial analysis, immediate analysis was done to prevent reproduction of microorganisms present in the environment and in the water samples.

Water samples were taken from the surface of the water source/s. And this was followed by water temperature measurement per station.

In the sample collection area, Styrofoam box with crushed ice was provided and was used as storage of the water samples for analysis. Transport of the water samples to the laboratory was timed so that it will not exceed 48 hours with continuous freezing. For nutrient analysis, in cases the analysis of water samples will not materialize immediately, the samples shall be placed inside the freezer until such time it will be analyzed. d) Results The Table 3 presents the water quality standard of WHO and Timor Leste and Table 4 presents the results of the analysis of water samples taken from seven (7) stations. Annexes 4 to 10 are the laboratory tests results.

Table 3 Water Quality Standard of WHO/Timor Leste relevant to the Project

Parameter Unit WHO/TL Standard 1. Physical Parameters pH - 6.5 – 8.5 E. Conductivity µS/cm NS TDS mg/L 1000 Salinity mg/L NS Temperature oC NS Turbidity NTU 5 2. Chemical Parameters

- NH3 N mg/L 1.5

- NO3 N mg/L 10

- NO2 N mg/L 1 Iron (Fe) mg/L 0.3 Manganese (Mn) mg/L 0.5 Fluoride mg/L 1.5 Free Chlorine mg/L 0.5 Ca Hardness mg/L NS Arsenic mg/L 0.01 Hardness mg/L 200 Total Alkalinity mg/L NS

2- Sulphate (SO4 ) mg/L 150 3. Bacteriological Parameters Total Coliform CFU/100 mg 0 E. Coli CFU/100 mg 0 Legend: NS= Not Set; CFU= Colony Formed Unit

Water testing was conducted between May, 2014 and Oct., 2014 to provide understanding of the physical, chemical, and bacteriological characteristics of existing and potential water supply sources of Baucau. Table 4 presents the full set of water quality results undertaken during the study:

Table 4 Water Quality Test Results

SAMPLING SITES

WHO/TL PARAMETERS UNIT NEW STANDARD UAILIA LAMEGUA BAUCAU RSU/ RIA HOSPITAL TIRILOLO MAUCALI SPRING RESERVOIR (RSS) MARI GROUND WATER Physical Test pH Value - 6.5 – 8.5 8.0 8.1 8.2 7.8 7.6 8.1 7.8 E. Conductivity µs/cm NS 473 475 506 482 1363 465 486 TSS mg/L NS 0.01 0.01 0.01 0.01 0.02 0.02 0.01 TDS mg/L 1000 236 237 253 241 681 233 243 Salinity 0/100 NS 0.2 0.2 0.2 0.2 0.7 0.2 0.2 Temperature oC NS 26.2 27.2 33.5 29.2 30.4 28.7 26.6 Turbidity NTU 5 (NTU) 0.3 0.3 0.7 0.3 0.7 0.1 3.5 Chemical Test

- NH3 N mg/L 1.5 0.2 0.4 0.5 0.3 0.5 0.2 0.4

- - NO3 N mg/L 10 (as NO3 N) ND ND 0.1 ND 0.1 ND ND

- - NO2 N mg/L 1 (as NO2 N) 0.004 0.003 0.003 0.002 0.003 0.003 0.002 Iron (Fe) mg/L 0.3 ND ND 0.02 0.01 ND 0.01 0.1 Manganese (Mn) mg/L 0.5 ND ND ND ND ND ND ND Fluoride mg/L 1.5 0.19 ND 0.1 0.1 0.63 0.24 0.20 Free Chlorine mg/L 0.5 ND ND ND ND ND ND ND Ca Hardness mg/L NS 225 215 215 225 210 225 210 Arsenic mg/L 0.01 ND ND ND ND ND ND ND T. Hardness mg/L 200 235 240 235 240 240 240 220 Total Alkalinity mg/L NS 220 230 220 220 220 230 200

2- Sulphate (SO4 ) mg/L 250 7 7 7 7 50 6 7

SAMPLING SITES

WHO/TL PARAMETERS UNIT NEW STANDARD UAILIA LAMEGUA BAUCAU RSU/ RIA HOSPITAL TIRILOLO MAUCALI SPRING RESERVOIR (RSS) MARI GROUND WATER Bacteriological Test Total Coliform CFU/100mL 0 TNC 0 0 7 0 0 3 E. Coli CFU/100mL 0 0 0 0 0 0 0 0 Legend: NS – Not set; ND – Not detectable; NT – Not tested; NR – No result; CFU – Colony Formed Unit; TNC – Too numerous to count

The testing results showed that there is an excessive amount of total coliform in the water in three (3) sites, namely: Uailia Spring, RSU Ria Mari and Maucali. Hence, there is a must for chlorination to bring the water sources compliant with the WHO and Timor-Leste drinking water guidelines and/or standards. It was noted that Uailia spring proximity to urban settlements and other economic activities such as: piggery, poultry house and other domestic animal’s cages are located above the limestone aquifer. Waste water from houses usually discharges into the open surface drainage. There is also a gasoline refueling station utilizing rusty lose 200 liters drums which, if leaking or spill out, would bring into the dangerous and water soluble carcinogen benzene into the Uailia spring which is pump out for public consumption.

There were chlorinator tanks installed but was abandoned when the residents complaint about the odor and made threats of violence. However, it is highly recommended that chlorinator tanks must be used to minimize if not totally eliminate total coliform in the water system in Baucau. The chlorine dose tanks at these locations will be located at a high point, so as to gravity feed the chlorine into the system. This can alleviate the concern of unreliable electricity supply affecting the operation of the system. The existing chlorine dosing system and in those areas that has no chlorinator tank, they must be provided with the project and those existing will be upgraded for reliable operation under this project.

B. Biological Environmental

B.1. Flora and Fauna Flora

Three of these species are listed on the IUCN’s Global Invasive Species Database (GISD) of the 100 worst invasive species, Siam weed (Chromolaena odorata), cogon grass (Imperata cylindrica) and coffee bush (Leucaena leucocephala). Thirty-six plant species are listed as being of ‘Least Concern’ on the IUCN Red List for Timor-Leste, and none of these were recorded during the field reconnaissance.

Several species of economic or local importance, primarily timber, fruit trees as food crops, and grasses were recorded. These species are: narra (Pterocarpus indicus); teak tree (Tectona grandis); ai samtuco (Falcaturia moluccana.P); eucalyptus (Eucalyptus globus); acasia (Samanea saman); mahogany (Swietenia mahagoni); balete (Ficus stipulosa Miq.Linn.); are also of conservation concern. The ipil-ipil (Leucaena leucocephala); and madre de cacao (Gliricidia sepium) are for firewood or household use for cooking to minimize cutting of hard wood trees.

Another, vetiver grass (Chrysopogon zizanioides) was observed to be abundant at the roadside, can be used for erosion control and slope protection. Other vegetation observed are the ornamental and/or flowering plants that are alongside of the house fence or planted on pots.

The fruit trees that were observed and homegrown are: coconut (Cocos nucifera); mango (Mangifera indica); coffee (Coffea Arabica);banana (Musa x paradisiaca); papaya (Carica papaya); guava (Psidium); jackfruit (Artocarpus heterophyllus); breadfruit (Artocarpus altilis); guyabano (Annona muricata); atis (Anonna squamosal).

Fauna

Five species of conservation significance were recorded in the study area: the yellow-crested cockatoo (Cacatua sulphurea), canut’s horseshoe bat (Rhinolophus canuti timoriensis), beach thickknee (Esacus magnirostris), slaty cuckoo dove (Turacoena modesta) and Timor bush-chat

(Saxicola gutturalis). The yellow-crested cockatoo (listed as Critically Endangered on the IUCN Red List) was sighted three times in the area where trees are their habitat and are potentially sensitive to environmental impacts posed by the project.

Two amphibians sighted around Baucau district, included the Asian black-spined toad (Duttaphrynus melanostictus), a species locally believed introduced, and often called the InterFET3 toad, after the peace-keeping forces, and confused with the Cane toad (Rhinella marina) which is not present, although it was more likely introduced by the Indonesian occupiers. Also observed were Rice paddy frog (Fejervarya sp.).

Asian black-spined toad (Duttaphrynus melanostictus)

Rice paddy frog (Fejervarya sp.)

Figure 18 Amphibians Sighted Around Baucau

B.2. Watershed Characterization and Assessment Timor Leste remains heavily forested, however unsustainable agricultural practices such as 'slash and burn' agriculture, as well as destruction of forests by Indonesian troops, has seen forest cover in Timor Leste decline from 65% in 1990 to 54% in 2004, with annual deforestation estimated at 1.2%. Land tenure rights for forests are unclear; nominally they are owned by the state but there is little enforcement and the perception of forests as an abundant, common resource supports their conversion to farmland. Forests provide key ecosystem services, including regulating climate, reducing flood risk by slowing run-off and maintaining habitat and biodiversity. The protection of these services can reduce the impacts of climate change, increase the ability of communities to adapt to climate change, and support rural livelihood activities thus aiding poverty alleviation efforts. The sustainable management of forest resources will be an important issue in Timor Leste's continued economic and social development, and it is positive to note the creation in 2007 of Timor Leste's first national park to protect 123,000 hectares of biologically rich forest and marine areas. Potential exists for projects under the Clean Development Mechanism (CDM) in Timor Leste which would support the

3 InterFET = International Force for East Timor, a UN peace-keeping force led by Australia deployed in 1999-2000.

introduction of low-carbon technologies with benefits for national development, although capacity would need to be built to attract and implement these projects. Although at an early stage, the Reducing Emissions from Deforestation and Degradation (REDD) proposal currently being discussed in international climate negotiations, whereby developing countries would receive compensation for preventing deforestation, also has great potential to contribute to sustainable forest management in Timor Leste (SIDA, 2008. Climate Overview:Timor Leste).

The hydrology condition can be observed from several factors, namely: vegetation, type of soil, total watershed area, topography, rainfall and climatological condition. In Timor Leste there are several rivers systems which contain certain catchment areas, from which the potential of watershed areas can be seen. There are 10 (ten) river systems (major river and watershed) in Timor-Leste and there area in some river systems which cover Indonesian area, especially in the border area and Oe-Cussi. The total length of the river in Timor-Leste is about 4,286km with a total river surface area of around 18,342 ha.

Table 5 List of Watershed Areas

Name of Watershed Area (km2) Atauro 140,7 Jaco 11,1 Laclo 2031,4 Loes 2191,3 Clere & Belulic 1923,6 Lifau & Tono Besi 814,4 Laleia 1009,9 Vero 746,8 Tukan Sanen 1379,8 Mola & Tafara 1538,8 Seical 1514,8 Irabere 1619,6 Source: MAFF

Figure 19 Baucau Catchment Area Source: DNCQ

C. Socio-Economic Condition Baucau is the second largest district in East Timor with a population of about 113,000 inhabitants, according to the chiefs of village registration. During the 2001 civil registration process 96,000 inhabitants were registered. Local languages spoken in Baucau include Makkasae for the majority, Waim’ua in Baho, Caibada, Bucoli and Vemasse Fo'ho villages, Midiki in Venilale and Naueti in Baguia. A number of people above 40 understand Portuguese and most of the others, including the younger population generally understand Bahasa Indonesia. Portuguese is being taught in all schools and some English in the secondary. . Crop production. The district of Baucau has the most highly developed agriculture in East Timor. Besides the staples rice and corn. The main rice producing areas are in Seisal, Buibao/Samalari, Tekinomata and Vemasse. Baucau produces beans, peanuts, sweet potatoes, coconuts, candlenut and manioc. It also raises buffalo and goats.

Figure 20 Rice Paddies in Baucau District

. Fishery. Situated on the "Tasi Feto" (Northern) shore, the most promising in terms of fishing, Baucau enjoys a favorable position to develop this sector. . Forestry. The District is producing much wood for construction of housing and furniture, especially in Baguia. However, reforestation efforts have been minimal. . Business Trade. There are shops concentrated in the Old Town Baucau that offer a broad range of goods.

. Restaurants. There are two higher priced restaurants, Amalia and Benfica, and many others varying in quality and price. Women groups and the Canossian vocational school cater for special events. . Hotels. The Hotel Loro Sae has nine private rooms and two dormitories (10$ a night/room). The Diocese hostel hosts special guests (17$ bed & breakfast). The Diocese is opening a new hostel in the upper part of Baucau. In addition, the Flamboyant hotel is being reconstructed and there is much anticipation about the future management of it. The hotel could be an important asset for the town and could facilitate tourism in the future. The SOFEBA, a Portughese / Timorese joint venture has been working on the rehabilitation and equipment of the building. A Portughese Tourism commission will register people for training in mid-April. . Mineral resources. There is an abundant supply of limestone in the vicinity of Baucau town that could be used to produce cement and chalk. The quantity and quality of the limestone is not known because it has never been extracted. Experts from Indonesia did a survey of mineral resources in 1997 and 1998. Large amounts of Manganese are present in Vemasse sub-district and on the Mate Bian Mountain in Quelicai sub- district. Gold, Silver, copper are present in the Vemasse sub-district and phosphate has been located in Quelicai. Colored earth that can be used to produce paint extends from Laga to Lautem. Near the town of Laga there is a salt lake that covers approximately 150,000 square meters and could be used for salt production. . Environment. The main hazards identified in the district are illegal logging, “slash and burn” practices and sudden river floods. The consequences are weighing on Agriculture with destruction of land through erosion, landslides and washing away of irrigation channel and rice fields. . Tourism. The pleasant climate of the highland, the beautiful setting of Baucau overlooking the sea, its proximity to picturesque beaches extending all the way to Laga and the presence of an airfield are pleading for the development of tourist facilities in the district. The sub-district of Baguia also has much to offer. The road to Baguia winds through beautiful traditional housing, over fresh streams, and through shady rainforest. From the Afalocai village your eyes embrace a vast panorama towards the other two Afalocai, respectively in the sub-district of Uato Carbau and Uato Lari in Viqueque. Venilale town in the highlands has lovely sightseeing, waterfalls and a hot spring in the area of Uai oli. Quelicai has a lively market twice a week and abundance of hiking tracks as well. All towns have the marks of 500 years of Portuguese presence with old forts and "posadas" that make a romantic picture in tropical Timor.

Infrastructure . Roads. The road from Dili is reasonably good and the connection with the port of Com, in the district of Lautem, has been restored. A Regional office for roads covers the eastern region and provides repair and maintenance services only on the main roads. Maintenance of roads to the sub- district are left to the community with limited assistance from the road services department. Many villages remain cut-off for the whole rainy season, which limits communication and commerce. For example, the road to the sub-district of Baguia has a few very bad spots that need emergency repair each year. . Water Supply. The city water system will meet the needs of the population once the UNOPS/UNDP project will be implemented by Aguapor. A community water improvement program is managed by GTZ under a German bilateral cooperation agreement in cooperation with the Timorese NGO, Program "Be Mos" (PROBEM) through a Participatory Rural Appraisal method. ECHO is funding a program to construct water and sanitation facilities for primary schools. The program is implemented by IRC in coordination with the Department of Education. . Electricity. The Power Station of Baucau is hoping to improve its power system. Currently, power is provided to Baucau and Laga every two nights because of a lack of sufficient generation capacity. Vemasse sub-district is linked to Manatuto generating facilities. Venilale, Quelicai and Baguia each have a small generator that provides a few hours of electricity per day. Limited budgets and the absence of a policy on electricity limit the role of Power Authority to maintenance and operation of

the main generator. A few villages willing to be connected to power are using grants from the Community Empowerment Project (CEP) to make connections in cooperation with the Power Authority. . Airport. The international airport is operating under the management of Pacific Aeronautic Engineering (PAE), a Singaporean company, that has a 25 year contract. Before 1975, Australian planes arrived from Darwin to the airstrip, which can receive Boeing 767s and Airbus 310s and 330s. . Sea Port. A small port at Carabella in the sub-district of Vemasse can be used for small boats or barges. . Media. Twenty-four hour radio Radio UNTAET programming is provided via a local FM radio transmitter. A team of local reporters cover the Baucau area for Radio UNTAET news. The community through a CEP program is currently considering the development of community radio. Television broadcasts of Timor Loro Sae TV are shown every night on the local television transmitter. Programming is sent from Dili on videocassettes. The daily newspapers, Timor Post and Suara Timor Loro Sae are sold in a Baucau store. Tais Timor, a monthly publication, produced by the United Nations is also available. La'o Hamutuk publication is also regularly distributed and has an office in the new town close to a newly opened public library. The library supported by a Swiss association will gradually be transferred to the sole responsibility of the Timorese association. It offers a large choice of books in Bahasa Indonesia, Portuguese, English and Tetum to a public from Pre School to post graduates. The association has a program to develop alphabets in vernacular languages to facilitate the learning of Tetun. . Post. A Post Office operates twice a week a mail service to Dili and overseas. This has greatly restored the communication and development opportunities for the population. . Telecommunications. Telstra provides mobile phone services to an area near the Baucau

Social Service Sectors . Education. Baucau District is a major Educational Centre. At present in the district there are 72 primary schools with 443 teachers and 19,844 students, 15 junior secondary school with 143 teachers and 4,000 students, three senior secondary schools with 46 teachers and 1,656 students and two vocational schools (Fatumaca and Venilale) with 24 teachers and 322 students. The church provided salary of teachers the government cannot appoint the teachers and the majority of the schools are run and manage by the church, which include the Venilale Girls Vocational School run by the Salesian Sisters and the Fatumaca Vocational School and Agriculture Centre of Fatumaca run by the Salesian Fathers with a boarding school of 224 boys. In Baucau, there is the Brothers Marist secondary school, the Canossian Vocational school and the Ursuline Children pre-school. Trainings are being organized but do not still meet the needs, especially for the primary schools. The building hosting the Education Department is under reconstruction and will have a big meeting room suitable for this purpose. . Sports. Baucau is well equipped with sports facilities. A large Stadium with a running track and football field has recently been refurbished as well as the main gymnasium. A swimming pool and tennis courts currently are being refurbished. Many area schools have basketball, football, volleyball and tennis facilities. The Confederacao Desportu Timor Leste (CDTL) supported by Australia is starting to reorganize sport tournaments. . Health. The regional hospital has 90 staff including two Timorese doctors and three Brazilian doctors including a surgeon, anesthesiologist and obstetrician. It has one ambulance to transport people from all sub-districts. Each sub-district has a health center staffed with nurses, assistant nurses and a midwife. Health posts service the villages and have, usually, one or two nurses and a midwife. Their number of staff varies with population. The services available in the health facilities are immunization, family planning, pre and post-natal care and minor surgery. The leading causes of morbidity are malaria, dengue fever, diarrhea and tuberculosis. Post-delivery casualties are also frequent, either for the baby or the mother.

Figure 21 Traditional House in the District of Baucau

V. Anticipated Environmental Impacts and Mitigation Measures A. Overview of Impacts The water supply system repair and improvement works of Manufahi, Viqueque, Baucau and Los Palos is expected to cause environmental as well as social impact due to (1) opening of waterline ditches; (2) opening of pits for regulating and water metering junctions; (3) repair and retrofit water pump station, water tower, water tanks/reservoirs; and (4) other works to be undertaken that will entail earth movement and/or excavation, cutting/clearing of vegetation (trees/grasses) which will affect birds and other animals habitat. On the social impact, houses built nearby and within the waterline will need to be relocated as project areas need to be cleared from obstruction prior to commencement of the project. Though bid evaluation and selection of Contractor has no anticipated environmental impacts as this is part of the preparatory phase of the project, still was included as Contractor/s have to attach in their bid documents under section “Special Conditions of Contract” five conditions pertaining to the adherence to environmental safeguards policy of the Government of Timor Leste and ADB Safeguards Policy (2009).

This is to provide an assessment of the impacts on the environment (as mentioned above) in the immediate vicinity of the project area resulting from the development and implementation of the project, and its corresponding mitigation and enhancement measures to minimize negative impacts. The environment of the project site and its nearby Sucos could be affected negatively by the project activities in the different phases of project implementation, if the mitigating measures are not strictly followed. The Table 6 below discusses samples of the project anticipated environmental impacts and its corresponding mitigating measures but this was presented in details in Annex 14 the EMP Matrix.

Table 6 Samples of Project Anticipated Environmental Impacts and their Corresponding Mitigating Measures

Phases of Project Development and Activities Anticipated Environmental Impacts Anticipated Mitigation Measures I. Bid Evaluation and Selection of Contractor  No anticipated environmental impacts as this is on  The Contractor will be required to provide a short statement to preparatory activity phase. be attached to the Bid in the section “Special Conditions of Contract”. that states the following five conditions: (i) Develop a Health and Safety Plan and shall be approved by the PMU; (ii) The contractor must take into account conditions included in the design all occupational health and safety requirement, such as: (1) Installation of warning signages; (2) Ensure sufficient visibility and safety instructions in the work areas; (3) Keep the site free of drugs and alcohol; and (4) Use of basic workers’ protection gear/equipment; (iii) During the construction phase stated in the EMP, conditions must have a corresponding costs into the bid price; (iv) The contractor must have a prior experience of working with an EMP; (v) The contractor is required to provide the name, details of qualifications and experience of the person on the contractor’s team who will be responsible for the compliance of EMP; (vi) Contractor/s should submit to the Project Management Unit (PMU) the Environmental Management Plan (EMP). Contractor’s location at the project site  Environmental aesthetics/landscape degradation;  Careful design to minimize/offset losses;  Loss of terrestrial ecology  Include in the design, re-greening program of the site II. Design, Pre-Construction Phase 2.1 Project site/location  Environmental aesthetics degradation  Careful design to minimize/ offset losses;  Loss of terrestrial ecology  Include in the design, re-greening program of the site 2.2 Land acquisition and compensation for the site  Contractor to determine the area needed for their  Chosen site must have lesser vegetation to be removed; of construction facilities camp, facilities and equipment shed;  The contractor to pay the landowner of the area to be utilize for their operation. 2.3 Inclusion in the design: 2.3.1 access road with a provision of storm water  Occurrence of runoff and soil erosion;  Make use of existing pathways to avoid land area to be acquired; and minimize environmental degradation.

Phases of Project Development and Activities Anticipated Environmental Impacts Anticipated Mitigation Measures drainage  Deterioration of water quality  Well graded road design with adequate outlets and stable discharge areas  Design of soil erosion measures  Design of silt protector on the discharge area to minimize turbidity of water 2.3.2 provision of borrow pit area/s  Environmental degradation  Adequate design in the restoration of borrow pit area/s 2.3.3 provision of garbage disposal area/s  Health hazards and risks to workers and community  Designate garbage disposal area within the project site  Implement garbage segregation within the project site 2.3.4 provision of storage area of hazardous  Health hazards and risks to workers and community  Designate an area which is dry covered and far from workers materials camp 2.3.5 Provision of budget for training construction  Healthy, hazards and risks free working environment.  Awareness building and application of knowledge by the Personnel and workers re: environment, construction personnel and workers Workplace safety and occupational health 2.4 Formulation of the watershed management plan  Widen recharge area of the aquifer  Restoration of denuded forest/ watershed area;  Improve and/or Increase volume of river discharge  Increase vegetation cover in the project area. III. Construction Phase 3.1 Site Preparation (Land clearing,  Loss of terrestrial ecology  Follow and implement the re- greening design of the area Staking, etc.) 3.2 Access road construction and/or Improvement  Loss of terrestrial ecology  Make use of existing pathways to avoid land area to be acquired; and minimize environmental degradation.  Occurrence of runoff and soil erosion  Well graded road design with adequate outlets and stable discharge areas

 Installation of dikes for soil erosion protection  Increase turbidity in river systems  Installation of silt protector on the discharge area to minimize

turbidity of water  Dust emission  Daily watering of newly opened and/or exposed land/ soil to minimize dust emission especially in areas where there are inhabitants/settlements.  Avoid burning of removed vegetation. Dispose removed vegetation to designated garbage disposal area. Encourage local people to make use of removed vegetation such as composting.

Phases of Project Development and Activities Anticipated Environmental Impacts Anticipated Mitigation Measures 3.3 Moving in and movement of construction heavy  Increase dust emission and/or total suspended  Daily watering of the access road especially in areas where equipment, etc. particles (TSP) in the air there are inhabitants/settlements  Increase noise and disturbance to nearby villages  Working hours must be limited during daytime  Provision of ear protection equipment to workers in place/s where noise reach 80 (dB(A)) 3.4 Provision of budget for training construction  Health hazard and risk free working environment.  Awareness building and application of knowledge by the personnel and workers re: environment, construction personnel and workers workplace, safety and occupational health IV. Operation and Maintenance 4.1 Continue implementation of watershed  Widen recharge area of the aquifer  Restoration of denuded forest area; Management plan  Improve and/or Increase volume of river discharge  Increase vegetation cover in the project area. 4.2 Regular Operation and Maintenance Practices  Long term health hazards and risk free to the  Routine maintenance activities such as cleaning of tanks, consuming community reservoirs/pipes and minor repairs should be performed at regular intervals to prolong the lifespan of the pipes, structures, and facilities.  Water treatment as required by DAA such as chlorination, etc.

VI. Analysis of Alternatives As described in Appendix F of the Masterplan and Section III.B of the Project Description, details of the proposed as well as alternative plans on how to improve and upgrade the Baucau Water Supply System. Through the implementation of the project, the water supply services can be improved as conceptualized, hence, this will increase consumers’ confidence in the public water supply system which will be positive to both consumers and the DAA. Following are the alternative plans on how to go about the improvement and upgrading of Baucau’s Water Supply System:

General approach

The overall approach to the master plans for the 4 towns has been undertaken sequentially generally in accordance with the requirements of the TOR.

An Assessment Phase undertook a detail review of the relevant sector background and issues as well as related national development policies and priorities. Because of the lack of urban planning information considerable work was done to identify likely urban development scenarios and estimates of future populations were prepared based on the available census data. A review was also undertaken of institutional, management, service delivery and financial arrangements for water (and sanitation) in the project towns. Household surveys and focus group discussions were undertaken in each town and extensive field visits were made to understand the existing water resource, infrastructure and O&M constraints and to develop concepts for the future water supply development.

A workshop following the Assessment Report presentation provided the conceptual master plans and sought feedback from the relevant central and district agencies, particularly from DNSA and the district water supply department and district administrations. There was general agreement in relation to the concepts. As mentioned above, there was some concern expressed about the low demand figures in the ETTA Guidelines. These are not being used as explained in Section 2.4 of the Master Plan.

Water supply system modelling

The next step was the development of system models using EPANET4 software. Network models were prepared based initially in the existing systems and these were expanded to include the key elements of the proposed water supply infrastructure development required to meet the 2030 demands and the anticipated urban development expansion. The model can include the complete systems including the source, transmission mains, storages, pumps if required, and distribution pipe networks.

After confirming the 2030 requirements the models were adjusted to determine the requirements for 2020 and then the requirements for staged implementation developed. The models are extremely useful for rapidly optimising the networks and in the process they provide a good understanding as to just how the network behaves in differing circumstances. Understanding the network behaviour is very useful in developing the appropriate implementation sequence to maximise service level improvements as early as possible during implementation.

Conceptual basis

The key conceptual aspects of the master plans for the four towns are described in the individual town sections in Sections 2.8 to 2.11 of the Master Plan. However there are a number of conceptual improvements that are common to all towns.

4 EPANET is a computer program that performs extended period simulation of hydraulic and water quality behaviour within pressurized pipe networks. It was prepared by the U.S. Environmental Protection Agency (EPA) and is available as freeware with an excellent user manual. It was selected because it is an excellent and easy to use program in common use by various stakeholders in the water sector in Timor Leste and available at no cost. The final models can be handed over to the relevant agencies on completion.

. Simplification: The existing systems in all towns are complex for various reasons. There is plethora of old pipes remaining in service even though new pipes have been installed in the same areas. The retention of old pipelines results in significant leakage including through illegal tapping. In addition the integrity of the systems is often lost through interconnection of zones and connections between transmission and distribution systems as a consequence of poorly planned augmentation and expansion. This complexity, coupled with poor documentation and human resource capacity constraints, makes effective operations extremely difficult. The implementation of the master plan must include simplification of systems including the removal of old pipes, establishing properly planned and separated transmission and distribution systems, properly designed distribution supply zones and properly documented systems. . Removal of old Portuguese pipes: There remain many old (frequently Portuguese era) pipes still in service as key elements of the distribution networks. These are almost invariably at the end of the economic life and should also be replaced and removed. . Increased Storage: The storage capacity in all town in well below normal criteria even for the current number of consumers. Adequate storage, coupled with well-planned distribution zoning is essential to maintaining 24 hour supplies by balancing the daily production and the diurnal variation in demand. Older systems installed during the Indonesian administration typically included limited storage. The limited augmentation undertaken during the emergency phase did not properly address the system storage requirements for various reasons. The criteria (Table 2 5 of the Master Plan) provides for 8 hours of emergency storages in addition to that required for diurnal demand variations. . Smaller zones: In general the zones in the current water supply systems were extensive, and have become increasingly so with the recent growth in the towns. This situation is exacerbated by the ribbon development along main roads which is common, especially in Lospalos and Baucau. This has led to the creation of multiple zones served by a single reservoir and rotation of supplies during the day. Even with the zone rotation consumers further from the reservoirs often receive very little water and the majority of consumers do not consider the service levels acceptable. The master plan will provide clearly designed and smaller zones which are capable of delivering a continuous supply with adequate supply pressures. Importantly these zones will be independent so that failure in one zone can be managed without putting other zones at risk. There will be clear separation of transmission and distribution pipelines. . Residual pressures: Attention will be paid to residual pressures across the networks under all conditions particularly to mitigate against excessive pressures and consequent higher leakage risks.

Implementation staging

The master plans includes staged development with an initial 5 year investment plan design to meet the initial requirements in each town and subsequent investments to expand capacity to meet the 2030 requirements.

However, equally critical is the detailed phasing of the initial investments. The communities in the project towns have long suffered from poor water supply service levels and a majority supplement the public system using other sources of supply at least for part of the year. While the existing service levels are plainly inadequate and unacceptable they nevertheless do provide water to a significant proportion of the population. It is essential to plan the first stage investment phasing to: a) Ensure that the current service levels are not reduced further. b) Stage the implementation to prioritise investments which can deliver rapid improvements. c) Keep communities well informed about the details of the implementation including specific details for the various zones and communities affected. d) Take interim measures to reduce gross leakage as headworks capacity improves and distribution systems start to become pressurised.

The details of the approach for each town is set out in Section 2.10 of the Master Plan but the principal is very important for communities' health and wellbeing as well as in helping to re-establish trust between communities and responsible agencies at the district level.

Data issues

There are a number areas where the master planning has had to proceed on the basis of some assumptions and judgements because of a lack of information. These gaps need to be addressed going forward through additional data gathering including in some cases specific research, surveys and/or testing. The key data gaps include the following. . Survey information: The master planning has used available mapping and drawings from various sources. A combination of Google Earth and digital GIS data obtained through the GoTL system has enabled the preparation of GIS mapping with satellite imagery, contour and administrative boundary information for the four towns. Roads were digitised from Google Earth, key building information was also digitised and check through field reconnaissance, and 20 metre contours were obtained from the GoTL. In Baucau there were more detailed drawings available, prepared under an earlier JICA funded project. These plans covered most of the current water supply system area and included many of the current water supply assets. In general the mapping prepared by Aurecon and the associated GIS data is adequate for master planning but care needs to be taken to ensure that any critical information gaps are addressed before implementation. One of the key gaps is accurate elevation data. It is critical to have accurate elevation data for the hydraulic calculations particularly for the key headworks elements including transmission pipelines, storages, and for the delineation of distribution zones. These data gaps also make it impossible to delineate the land acquisition requirements for some facilities (such as reservoir/tank sites at this stage. It is unlikely that this will change during the scope of the PPTA. . Existing pipelines: Reliable documentation on existing pipelines is generally not available. The Aurecon team used whatever data was available in the field and undertook extensive field reconnaissance to firm up the details of existing pipelines - transmission and distribution. In some towns there tabular data was available providing the length, diameter and age of existing distribution system assets. Interview with local District Water Departments were better understand the extent of the older Portuguese pipelines requiring replacement. Understanding the detail of how the networks are connected is extremely difficult and in any event it can change. These issues will need to be revisited during implementation to the intent of the master plan is delivered. . Water resources: Limited data on existing water resources was identified as an issue in the Inception Report. It was recommended that some simple monitoring systems be installed in Baucau and Viqueque but these did not proceed, partly because of because of funding constraints but also because our understanding of the resources improved with regular observation during the work to date. While there is now an improved degree of confidence that the resources in Baucau and Viqueque are both adequate in the medium term, these sources still require a permanent system for routine and continuous monitoring of spring and stream flows. These facilities will be included in the project investments. Baucau and Lospalos have more significant water resource constraints which are dealt with in Sections 2.8 and 2.9 of the Master Plan. . Water quality: Logistics constraints within DNSA have led to a failure in routine water quality monitoring as required under the National Drinking Water Quality Standards and Monitoring Guidelines. Aurecon arranged some testing during the Assessment and Master Plan stages (refer Appendix C of Master Plan). There are source contamination issues, particularly in Baucau and Lospalos, and distributions systems are being contaminated by surface water entry in Lospalos and Viqueque. Resumption of routine monitoring is important particularly given the lack of chlorination and the health risks associated with contaminated public water supply systems. Communities should be informed of the risks inherent in the current situation.

Following are the specific additional information gaps and/or concerns in each of the four towns that was documented in Sections 2.8 to 2.11 of the Master Plan:

Community engagement

Successful project formulation and implementation requires substantial engagement with the beneficiary communities and other stakeholders. Extensive social research was undertaken during the Assessment Stage, including household survey, FGDs and in-depth stakeholder interviews in each of the towns. The details from the household surveys etc. were analysed and documented in the Assessment Report and have been used to inform various aspect of the master plan. This work was also used to develop an action plan for community consultations and traditional ceremonies as well as a stakeholder communications strategy which is detailed in Section 4.3 of the Master Plan.

Operation and maintenance arrangements

The master plan concepts assume that major changes can be made to current operation and maintenance arrangements. This is a critical assumption. If there is no change then the investments will fail to deliver the expected benefits and will be unsustainable. This aspect is considered further in Section 2.15 of the Master Plan.

Standardized infrastructure elements

This section sets out a number of considerations in relation to various elements of the water supply infrastructure which are common to the all of the Project towns. These include: . Reservoirs/storages . Pipelines . Pumping systems . Water treatment/disinfection facilities . Service connections and consumer meters . Bulk metering

The recommendations in this section were developed and agreed with the ADB that for Baucau this master plan would assume the availability of water from a source at high elevation on the Baucau plateau and prepare a concept designs and cost estimates for the key headworks (source development, transmission, treatment and storage). Cost estimates for the distribution system will also be prepared using comparative data from the other 3 towns. The concept subsequently developed for Baucau is shown in Figure 1 (plan) supported by Figure 2 (system schematic). The key features of the concept were discussed in Section III.B of this IEE report.

Without the implementation of the project, water supply system at Baucau will remain and/or even worsen its irregularity in service or water supply to households and establishments; low area coverage of water supply, hence, remain as its current economic level; water quality will not be improved due to the absence of improved water supply facilities. The low probability of investors to open an industries/livelihood opportunities presently existing in the area will remain as it is and will not be enhanced.

VII. Information Disclosure, Consultation, and Participation As a requirement of ADB’s Safeguard Policy Statement 2009, the public consultations were undertaken on March 24 – 25, 2015 during the preparation of this IEE. The first day (March 24, 2015) was a meeting with the DAA and his staff to gather data and information from the water district office and discussed the processes and methodology and to be used during the stakeholders’ consultation meeting. Another, the agenda, the different roles to be undertaken by the Chief DAA, his staff, and the project consultants (who were present) have been discussed in order to have an order during the conduct of the meeting. The stakeholder’s consultation meetings objective were to present the proposed project and discuss ADB environmental requirement for the project and also, to know from the project affected peoples the issues and concerns regarding the project.

In Baucau information disclosure, consultation and participation were undertaken through the discussion of the present situation of the water supply system including source, quantity, quality and reliability of the existing supply.

Stakeholders’ participant ideas on the current situation of their water supply system and their thoughts on the corresponding changes they would want for the water supply were solicited and gathered during the open forum (Annexes 11, 12 and 13).

It was verbalized by the majority of the stakeholders’ participants that they are willing to participate in the project provided they are informed and be given the suitable roles and responsibility/ies during the implementation of the project. Furthermore, the stakeholders were willing to participate in the maintenance activities when the DAA discussed their insignificant budget allocation for the said activities. In general, the project stakeholders’ were enthusiastic and they look forward in the implementation of the project.

VIII. Grievance Redress Mechanism In line with the project implementation, community and/or the project affected peoples, project implementers always have concerns, clarifications and issues with the project implementation and management. These are inevitable, however, need attention and has to be given the necessary clarification and/or solution. As the project progress in its implementation, the magnitude of issues and concerns differ, hence, the need for a regular dialogue between the project implementers and the project affected peoples in all phases of project implementation. This will maintain openness and cooperation in the project.

Prior to project contractors’ mobilization, the project management unit (PMU) together with the project contractor must convene the community and/or the project affected peoples and formulate set of rules, policies and systems to be followed during project implementation. The said rules, policies and systems must be signed and agreed upon by both the community and/or the project affected peoples, the project management unit (PMU) and the contractor. This will ensure order within the project and issues and concerns can be addressed immediately.

Aside from this, the project must have a project office whereby, community and/or project affected peoples can immediately submit their complaints and received by the project authority/ies in-charged for grievances and complaints. This way, the issues and concerns can immediately be responded and resolved. Following are suggested steps on how to resolve and address issues and concerns regarding project implementation: a) The first step towards resolution of issues and concerns relevant to the implementation of the project is the filing of a formal notice/complaint by the Affected Person/People (AP) with the Project Management Unit (PMU) – National Directorate for Water Supply and Sanitation (NDWSS). This

will be received and properly recorded by the Team Leader–Urban Water Supply Engineer in the PMU and within one month of lodging the complaint a decision will be conveyed to the PAPs. The PMU-NDWSS is to maintain a register where all complaints are logged by date, name and contact address and details of the complaint. A duplicate copy of the register entry is given to the AP for their record. The PAPs may if so desired discuss the complaint directly with PMU-NDWSS or his representative at a meeting to be possibly arranged within the week the complaint was filed. The register will show who the complaint has been directed to for action and the date when this was made. The register is then signed off by the person who is responsible for the decision and dated. The final entry shows the date when the PAPs was informed of the decision and how the decision was conveyed to the PAPs. If the complaint of the PAPs is dismissed the PAPs will be informed of their rights in taking it to the next step. The register is to be kept at the Reception and is to be made available to the public. The register will also show the procedure that will be followed in assessing the complaint, together with a statement affirming the rights of the PAPs to make a complaint. b) Should the PAPs be not satisfied with the decision/ruling of the PMU-NDWSS, the PAPs may file a written complaint with the Department for Environment (DoE). The time horizon for the investigation and resolution of the complaint will vary and is highly dependent on the workload of the investigating officer of the DoE. c) Should the PAPs still be not satisfied with the ruling of the DoE, the PAPs may then take the grievance to the Timor-Leste Judicial System. This will be at the PAP’s cost but if the court shows that PMU-NDWSS have been negligent in making their fortitude the PAPs may seek costs.

IX. Environmental Management Plan A. Overview The Environmental Management Plan (EMP) was developed and formulated in accordance with ADB Safeguard Policy Statement (2009) to come up with a sustainable development and implementation plan through environmental protection and management of natural resources and project affected peoples’ health risk free project. This is in consonance with Timor Leste national policy and ADB Safeguard Policy Statement (2009) to create, develop, maintain and improve conditions under which man and nature can thrive in harmony and to attain an orderly and rational balance between socio- economic growth and environmental conservation and management – sustainable development, mitigating measures to minimize, or if at all possible, eliminate the adverse impacts of the project to the environment and the community.

Prior to project implementation, and if there are significant changes made during the detailed design, the EMP will be amended and reviewed by the implementing agency. Such that the review will be based on any additional information on the project location, scale/size (if there are expansions to be made, source/s of materials, and expected changes in operating conditions of the project. If there will be an amendment, ADB would need to know the necessary changes to be made and approve said amendments prior to the project implementation.

B. Mitigation Measures Plan The application of the proposed environmental mitigating measures have been summarized in the EMP (Annex 14). All the anticipated environmental impacts and its applied mitigating measures were described in detail per project phase of development, such as: pre-construction/design, construction and operation and maintenance phase. Furthermore, it also reflects approximate location, timeframe, and the responsibility/ies of the different key project players during project implementation and supervision. The recommendations and proposed mitigation measures will be attached to the project Bidding Documents and then to Contractors contract. The environmental costs will be estimated

during the design phase of the project. It should also be noted that some mitigation measures are assumed to be already part of standard design and construction methodology/ies and practices. Following are the application of environmental mitigating measures to very critical environmental impacts of the project:

B.1. Solid Waste Management During the construction phase of the project, stripped overburden from the earth moving activities and civil works shall be collected and disposed in the designated Spoils Disposal Area (SDA) within the project site (to be designated during the detail design phase). This will be done despite the fact that the amount of stripped overburden is projected to be minimal. The SDA shall be properly managed and maintained to prevent siltation of nearby bodies of water.

B.2. Siltation/Contamination of Bodies of Water The potential for siltation of rivers (as mentioned in Section 1.3.1 and 2.2 of EMP) is at the maximum during the construction phase. It shall be endeavoured that silt traps structures and some soil stability and soil erosion preventive measures (adaption of bio-engineering technology) will be installed during the construction phase.

B.3. Noise Levels in the Area It is projected that the noise level within the immediate vicinity of the project site will increase due to the intermittent operation of heavy equipment/machinery and earth moving equipment during the construction phase of the project. This impact, however, is localized to the project area and will only last during the construction phase.

In spite of the insignificant effect of the project as regards noise pollution, it shall be endeavoured that the operation of the construction equipment be limited to a twelve (12) hour period per day (such as 6:00am - 6:00pm) thereby creating the least disturbance, if any.

B.4. Total Suspended Particulates in the Atmosphere During the civil works and earth moving activities, dust will unavoidably be generated. To address this problem, regular spraying shall be undertaken on the unpaved and exposed areas to eliminate or minimize the generation of dust. The access road to the site shall be properly maintained and watered to control dust generation and/or emission.

B.5. Occupational Health and Safety The workers shall, at all times, be provided with the necessary safety equipment to prevent accidents and injuries. Furthermore, strict compliance to OSHA, WHO and ILO safety rules and regulations shall be enforced at all time in all the workplace.

B.6. Road Maintenance Regular road repair and maintenance shall be undertaken. For this purpose, the contractor shall assign one (1) unit of road grader to be utilized. The roads be graveled and sprayed with water to minimize dust generation and/or emission.

B.7. Designation of Greenbelts Areas designated as greenbelts shall be planted with the appropriate tree species by the project contractor. A replanting and re-vegetation program of open areas within the project site shall be prepared during the design phase of the project.

B.8. Construction Contractors’ Program The Consultancy Service provider for the project will monitor all environmental concerns relative to the construction of the project in accordance with the Directorate of Environment requirements and ADB Safeguards Policy Statement (2009). An environmental impact assessment report describing the findings shall be prepared by the Consultant and submitted to DNSA and ADB.

As discussed during the conduct of the Stakeholders Consultation Conference, the community were made aware of their participation and monitoring during the project implementation. The people even verbalized to DAA that they will volunteer themselves even doing the maintenance activities just to make sure and assured of a clean water supply. DAA said for now, community participation is encourage especially that funds for maintenance is a problem and as to community participation during project implementation, the participants were assured that they will be informed prior to project commencement, so that they will be aware and can plan out how they will take part in the project implementation and monitoring.

C. Environmental Monitoring Report Correspondingly, a monitoring program and/or plan for the project must be formulated to specifically designed and determine the extent of variations and changes of several environmental parameters that result from the implementation of the various activities of the project.

The program and/or plan, as designed, is dynamic as it could be modified to take into several factors, e.g. revision of standards, enactment of new policy, rules and regulations, and the development of new technologies for environmental monitoring.

The implementing agency which is DNSA shall be responsible to implement the environmental monitoring program and/or plan for the project.

The detailed monitoring program in all the different phases of the project development are as follows:

C.1. Pre-Construction Phase The DNSA shall monitor civil works, specifically the increase in the levels of ambient noise and air particulate matter during the earthmoving activities for the construction of the access road, spoil disposal areas (SDA), etc.

It shall be endeavoured that air emissions from the earthmoving equipment and dust generation/emission during the activities and the attendant noise from these equipment be within the ambient standards set by the Directorate of Environment (DoE).

Monitoring of the rivers surrounding the project site for suspended solids shall be undertaken, if possible, on a regular basis to assess the integrity of the siltation and erosion control measures being adapted and implemented (recommend to adapt bio-engineering technology).

C.2. Construction Phase During the construction of the various infrastructures and facilities, access road, storage tank/facilities, etc. sampling in high critical impact stations shall be undertaken. This shall be done to monitor the levels of total suspended solids content s of the receiving body/ies of water to ensure that the ambient environmental standards are met.

Ambient noise and air quality levels shall also be monitored within the areas and the buffer zones. Compliance to ambient environmental standards shall at all times be maintained.

C.3. Operation and Maintenance Phase Continue monitoring of air, noise and water quality shall be undertaken on a regular basis. Moreover, other environmental parameters must be continuously be monitored.

C.4. Public Health Monitoring An annual monitoring of the mortality/morbidity causes for the population along the vicinity of the project site shall be undertaken by DAA in coordination with medical outreach program of the municipal/district health unit.

C.5. Occupational Health and Safety Monitoring This shall be undertaken on a regularly basis during the whole cycle of the project implementation in all the work areas. The following parameters shall be given emphasis: a) Personnel protective gear and equipment; b) Fire protection equipment; c) Ambient air and noise level; d) Provision of portalets (portable toilets) within the workplace; and e) Potable drinking water for workers

D. Institutional Implementation and Reporting Arrangements The institutional plan of the Water Supply project at Baucau, includes the basic organization to implement the environmental management plan as well as the organizational relationship of the project proponent with respect to the concern of the stakeholders and of the other governmental agencies. The DNSA in coordination with the DoE will take the lead and most of the responsibilities in term of environmental protection.

D.1. Project Implementation and Reporting Arrangements An environmental unit for the Water Supply project operation (at DAA level) shall be formed and established, staffed and operationalized. This unit will be responsible, too, for the compliance by the water supply project with environmental standards and meeting the requirement of Project Management Unit (PMU) and DoE.

The Water Supply project (at DAA level) will designate and nominate its Pollution Control Officer/s (PCOs) who will meet the qualification standards for this function. He/She will be trained on the country’s (Timor Leste) environmental laws, regulations, standards, pollution control and the like. And shall be given orientation on ADB Safeguard Policy Statement (2009) on the procedures and provisions related to the project and the EMP.

To ensure the implementation of the EMP, the PCOs will initiate institutional linkages and install coordination mechanisms (to include the reporting arrangements) with the executing agency, the Ministry of Infrastructure, the implementing agency, the DNSA at the national level and DAA at the district level and the contractor. The PMU which comprise the funding institution, the ADB, the Consultants (if there are any), the regulatory agencies and/or organizations – the DoE, District office, Water User’s Organization, NGOs, Women Organization and other project stakeholders.

Within the contractor, they will design its own environmental, health & safety program pattern after the EMP to be used in orienting their employees and workers on the environmental standards, environmental protection policies, pollution control program and health & safety drill which the company will implement for the entire duration of project implementation.

X. Conclusion and Recommendation Since the TA-8064 TIM: Second District Capitals Water Supply Project (46160-001) is an improvement and upgrading undertaking, hence, this will bring about insignificant negative, though short-term, environmental associated disturbance during construction activities which will be mitigated through technical operating procedures for rehabilitation/construction works as outlined in the Environmental Management Plan (EMP) to be implemented and supervised by the Team Leader – Urban Water Supply Engineer in the PIU.

The project is expected to generate employment during construction of the project, therefore, community and PAPs will have income and augment their daily wage. When the project is already at operational phase, it is expected to invite more investors to the district where local economy will increase, hence more new income opportunities for the community and/or PAPs.

In line with the development vis-à-vis environmental sustainability, it is recommended that DAA, Baucau District officials, Community and PAPs to organize themselves to protect the flora and fauna of the watershed area by not cutting trees, killing forest animals for food and pouching plants and must have regular tree planting activities to the watershed areas. This way you can have a wider and expanded re-charge area of your underground water and/or aquifer. Furthermore, DAA must organize (if there is no WUA at Los Palos at present) and strengthen (if there is already WUA) the Water User’s Association in order to facilitate Operation and Maintenance activities and bring about order in the water distribution.

Based on the above findings, it is concluded that the project has insignificant potential adverse impacts and all impacts can be satisfactorily managed by the application of the EMP. The Initial Environmental Examination (IEE) shows that all potential impacts can be satisfactorily mitigated and an EMP has been prepared as a guide and bases of the contractor and project proponent in the implementation of the project that contain practical and realistic mitigating measures.

The IEE concludes that the potential adverse environmental impacts arising from the construction of the project (as mentioned and outlined in EMP) can be minimized to an insignificant levels. Therefore, this IEE is adequate for the proposed project and its proposed environmental management and monitoring program are sufficient to fulfil ADB’s environmental safeguard policy and the Government of Timor Leste environmental regulations for the project.

Annexes

ANNEX 1 Decree---Law No.5/2011 9 February or Environmental Licensing Law

Baucau Environmental Management Plan Aurecon

Unofficial translation ďǇ>Ă͛Ž,ĂŵƵƚƵŬŽĨĞĐƌĞĞ-Law 5/2011 on Environmental Licensing 1

5RXJKXQRIILFLDOWUDQVODWLRQE\/D¶R+DPXWXN Official Gazette Series I, No. 7. 23 February 2011 Decree-Law No. 5 / 2011 of 9 February ENVIRONMENTAL LICENSING

Table of Contents CHAPTER VIII CHANGE OF ENVIRONMENTAL CHAPTER I GENERAL 3 CONDITIONS OF LICENSE 11 Article 25 Review of the Day and the EMP ...... 11 Article 1 Definitions ...... 3 Article 26 Issuance of Opinion and Decision on the Review of CHAPTER II ENVIRONMENTAL LICENSING SYSTEM 4 the EMP ...... 11 Article 2 Subject ...... 4 Article 27 Deadline for implementation of the alterations .. 12 Article 3 Environmental licensing procedure ...... 4 Article 28 Change of Category of License ...... 12 Article 4 Definition of Categories and Type of Environmental CHAPTER IX REGIME FOR PREVIOUS PROJECTS 12 Assessment Procedure ...... 5 Article 29 Projects in Development and Construction Phase12 CHAPTER III ENVIRONMENTAL ASSESSMENT Article 30 Projects in Evaluation Procedure ...... 12 INFORMATION PHASE 5 Article 5 Defining Project Scope ...... 5 CHAPTER X SURVEILLANCE AND MONITORING 12 Article 6 Informational Phase Procedure ...... 5 Article 31 Auditing ...... 12 Article 7 Right to Information ...... 6 Article 32 Reporting Requirements ...... 13 ƌƚŝĐůĞϯϯƵƚǇ,ŽůĚĞƌ͛ƐDŽŶŝƚŽƌŝŶŐĂŶĚZĞƉŽƌƚŝŶŐ ...... 13 CHAPTER IV PROCEDURE FOR ENVIRONMENTAL IMPACT ASSESSMENT AND GRANT OF CHAPTER XI PENALTIES 13 ENVIRONMENTAL LICENSE 6 Article 34 Offenses ...... 13 Article 8 Procedural steps ...... 6 Article 35 Accessory penalties ...... 14 Article 9 Presentation of the Request for EIA and Article 36 Application of Sanctions ...... 14 environmental license ...... 6 CHAPTER XII CHALLENGE OF DECISIONS 14 Article 10 Evaluation Committee ...... 7 Article 37 Administrative Procedure ...... 14 Article 11 Public Consultation ...... 7 Article 12 Technical Analysis for Project Evaluation CHAPTER XIII FINAL AND TRANSITIONAL PROVISIONS15 Committee ...... 7 Article 38 Records and Information Access ...... 15 Article 13 Issuance of Opinion by the Evaluation Committee 8 Article 39 The Institution Regulatory Information Article 14 Decision on the Environmental Impact Assessment Sector Project 15 and Environmental License ...... 8 Article 40 Duty of Justification ...... 15 CHAPTER V PROTECTION OF TRADITIONAL CUSTOMS Article 41 Deadlines and Forfeiture ...... 15 AND DUTIES 8 Article 42 Supplementary Regulations ...... 16 Article 15 Impacts and Benefits Agreement (IBA) ...... 8 Article 43 Cost of Environmental Assessment Procedure .... 16 Article 16 Negotiation of the IBA ...... 8 Article 44 Enforcement of Environmental Law ...... 16 CHAPTER VI INITIAL ENVIRONMENTAL EXAMINATION Article 45 Transitional arrangements ...... 16 (IEE) AND GRANT OF ENVIRONMENTAL LICENSE 9 Article 46 Abolition of regulation ...... 16 Article 17 Procedural steps ...... 9 Article 47 Entry into Force ...... 16 Article 18 Project Presentation ...... 9 Annex I: Table of Classification of Category A Projects17 Article 19 Technical Analysis by the Environmental Authority ...... 9 Annex II: Table of Classification of Category B Projects19 Article 20 Endorsed by the Environmental Authority...... 10 Article 21 Decision on Environmental Assessment Simplified ...... 10 CHAPTER VII ENVIRONMENTAL LICENSE 10 Article 22 Type of Environmental License ...... 10 Article 23 Issuance of Environmental License ...... 10 Article 24 Duration and Renewal of Environmental License 11 Unofficial translation ďǇ>Ă͛Ž,ĂŵƵƚƵŬŽĨĞĐƌĞĞ-Law 5/2011 on Environmental Licensing 2

As one of the youngest nations in the world, Timor-Leste has shown great concern and sensitivity to environmental issues since the restoration of its independence on 20 May 2002. Thus, recognizing the quality of the environment as an integral and essential quality of life for all Timorese, the Constitution of the Democratic Republic of Timor-Leste provides in Article 61, that people are not only entitled to an ecologically balanced environment healthy for human life, but everyone also has a duty to conserve and protect the environment in the interests of future generations. In this context, the Constitution recognizes the need for preservation and enhancement of natural resources and the need to determine actions to promote and protect the environment as an essential vehicle for sustainable development of economy of Timor-Leste. Internationally, Timor-Leste has been present at several conferences and has ratified several international conventions under the auspices of the United Nations (UN) such as the Kyoto Protocol, the UN Convention on Biological Diversity, the United Nations Convention to Combat Desertification, the Vienna Convention for the Protection of the Ozone Layer and the Montreal Protocol for the Reduction of Substances that Deplete the Ozone Layer. Although the state emits 0.02 tons per capita per year, the government plans to voluntarily reduce the rate under the United Nations Framework Convention on Climate Change (UNFCCC). Similarly and in order to comply with obligations under the international conventions mentioned above, Timor-Leste is now to establish and define the basis of its domestic legal environment integrating the concepts of internationally accepted environmental law. The creation of an environmental licensing system that allows us to prevent negative impacts on the environment, rather than subsequently trying to counteract their effects, is undoubtedly the most effective environmental policy. Thus, the environmental licensing based on the environmental assessment of the interventions of a public or private nature, and instruments as the Environmental Impact Statement (EIS) and Environmental Management Plan, ensures the previously mentioned preventive nature of environmental preservation. In turn, the public consultation is a fundamental right enshrined in the Constitution, and also an instrument of decision- making process, which allows integration of diverse views and perceptions of the project by segments of society, creating conditions suitable for implementing the project and its integration at community and national levels. Therefore, there is a need to regulate with the objectives to: a. Establish an environmental licensing system based on principles of efficiency, transparency and independence; b. Ensure community and public participation in the Environmental Assessment procedure; c. Identify and assess the impact of development proposals on the environment; d. Create conditions to minimize or eliminate negative environmental and social impacts of project implementation; e. Determine measures of environmental and social protection to be applied when implementing the project: f. Prevent the realization of projects that have a significant potential impact on the environment; g. Establish the procedure for issuing environmental licenses according to to environmental assessment, which contributes effectively to environmental control; h. Supervise and monitor projects in accordance with the provisions of Environmental Management Plans (EMP). Accordingly, this law institutes an Environmental Licensing System, designed as an incremental system to meet the need to prevent negative environmental impacts depending on the complexity of projects and given the economic and social situation of Timor-Leste. The system, moreover envisages the granting of environmental licenses and inspection responsibilities as a logical consequence of the procedure for environmental assessment of projects, thus creating an integrated procedure and a simplified process for prevention of negative environmental impacts and controlling pollution from projects. Part of the environmental licensing procedure will include a phase of voluntary guidance for the proponent, designed to optimize the process of Environmental Assessment, and that particular objective to assist the proponent in the classification of the project and contribute to the elaboration of the terms of reference, a fundamental guide to the procedure of preparing the Environmental Impact Statement and Environmental Management Plans. At the phase of Environmental Assessment, it creates a system where the public participates in the evaluation procedure from the outset, enabling the timely incorporation of their contributions and recommendations by the Evaluation Committee. Thus, the Government, under Article 115.1(b) of the Constitution, decrees the following, as law:

Unofficial translation ďǇ>Ă͛Ž,ĂŵƵƚƵŬŽĨĞĐƌĞĞ-Law 5/2011 on Environmental Licensing 3

CHAPTER I GENERAL Article 1 Definitions For purposes of this statute the following are defined: a. Environmentally protected area: an area that is habitat for a threatened species, or protected area defined as sensitive by the legislation in force in Timor-Leste, an area where there materials and goods of cultural interest, including constructed heritage, archaeological heritage (on land, river and sea), traditional architecture and traditional sites of cultural significance associated with local customs and experience; b. Environmental Authority: the responsible administrative entity for the environment area; c. Superior Environmental Authority: Government member responsible for deciding the procedure of environmental licensing; d. Environmental Assessment: generic concept of the procedure regarding a decision on the environmental feasibility of implementation of certain projects, based on tools for environmental assessment and management are defined in this statute, including: I. Environmental Impact Assessment: The procedures for environmental assessment of projects in Category A II. Initial Environmental Examination (EAI): The procedures for environmental assessment of projects in Category B e. Categories A, B and C: the classification categories of projects depending on the size of the potential environmental impacts that correspond to different legal requirements for environmental licensing of projects; f. Endangered species: are the species of fauna or flora protected or endangered pursuant to the law in force; g. Construction Phase: fixed period during which the works are started clearing, excavation, dredging, sorting and other activities associated with the physical implementation of the project; h. Deactivation Phase: fixed period during which it frees, for other uses, the area where the mining, industrial or operating unit of the project is deployed, usually through the decommissioning and removal of equipment, ensuring good safety conditions and environment framework; i. Development Phase: period between the construction phase and decommissioning phase during which the project is in full operation and implementation in view of the planning done, particularly in terms of deadlines, costs and quality. The work associated with this phase includes defining the organization, allocation and management of human resources, material and financial resources, hiring of equipment and services, verification and monitoring of deadlines, costs and quality, and replanning; j. Inspection: routine or unscheduled procedure, carried out by the Inspectorate of the Environment, observation and systematic collection of data on the state of the environment or on the environmental effects of a given project and description of these effects through periodic reports with the objective of allowing the evaluation of the effectiveness of the measures in the Environmental License to avoid, minimize or compensate for environmental impacts resulting from implementation of the project; k. Environmental Impact: A set of positive and negative changes produced in social and environmental parameters which include, among other things, people and their economic and social structures, air, water, flora, fauna or their habitats in a given period of time and a certain area resulting from the execution of a project. The impacts are analyzed by comparing the situation that occurred in that area and period, with the same area and period if the project was not implemented; l. Inspection of Environment: direct or indirect state entity responsible for environmental monitoring; m. Facilities: are the facilities and equipment that are part of the project; n. Environmental Assessment Instruments: instruments of preventive character of environmental policy under the Environmental Assessment procedure, which includes the Environmental Impact Statement and Environmental Management Plan o. Interested party: the applicant, the holder of the related Ministries, communities, individuals or any entity, public or private, with a legitimate interest in the project, including representative environmental organizations and nongovernmental organizations; Unofficial translation ďǇ>Ă͛Ž,ĂŵƵƚƵŬŽĨĞĐƌĞĞ-Law 5/2011 on Environmental Licensing 4 p. Environmental License: a written decision that gives the proponent the right to conduct the project, ensuring the integrated prevention and control of the environment; q. Environment: the definition under the law in force in Timor-Leste, together with physical, chemical, natural and organic living beings, including humans and their behavior and property, which affect the continuity and quality of human life, other living things, and quality of ecosystems; r. Monitoring: The process undertaken by the holder of observation and systematic collection of data on the state of the environment or on the environmental effects of a given project and description of these effects through periodic reports, in order to allow assessment of the effectiveness of the procedure provided for in the Environmental Assessment to avoid, minimize or compensate for environmental impacts resulting from project implementation; s. Pollution: direct or indirect introduction into the environment by human activity of microorganisms, substances, or waste heat which may harm human health or environmental quality and cause deterioration of property, or impair or interfere in the use the environment and the legitimate use of water and soil. This includes the activities regarded as noisy, which can produce harmful or nuisance noise, for the beings in sensitive locations, or for those who live, work or remain in the vicinity of where they happen; t. Polluter: natural or legal persons, public or private, who commit acts of pollution; u. Project: under control by legislation in force in Timor-Leste, is the design and intervention in the natural environment or the landscape, either public or private (including the carrying out of construction works and those involving the exploitation of natural resources); v. Proponent: individual or legal person(s), public or private, requiring an environmental license for a project; w. Public: communities, citizens or any entity, public or private, with a legitimate interest in the project, including representative organizations and nongovernmental organizations in the area of the environment; x. Waste: the definition under the law in force in Timor-Leste, any substance or solid, liquid, gaseous or radioactive matter which causes changes when discharged into the environment from the activities of individuals, public or private institutions; y. Non-Technical Summary is a document of the Environmental Impact Assessment (EIA) that briefly describes, in accessible language and non-technical information contained in the EIA. z. Terms of Reference (TOR) document the preliminary analysis of the project, defining the content and purpose of the Environmental Impact Assessment. This document is part of the Scoping of projects classified as category A; aa. Holder: The person or entity, public or private, who is assigned an environmental license for a project.

CHAPTER II ENVIRONMENTAL LICENSING SYSTEM Article 2 Subject 1. This law creates a system of environmental licensing for public and private projects likely to produce environmental and social impacts on the environment. 2. The system of licensing is a system based on assessing the size of the potential environmental impact of projects taking into account their nature, size, technical characteristics and location. Article 3 Environmental licensing procedure 1. The environmental licensing procedure is in: a. Guidance for Scoping; b. Environmental Assessment and Allocation of the Environmental License; c. Issuance and Renewal of the Environmental License; d. Authority. 2. It is considered the beginning of the environmental licensing procedure the timing of project documents delivered to the Environmental Authority for the purpose of fulfilling the provisions of b) above. Unofficial translation ďǇ>Ă͛Ž,ĂŵƵƚƵŬŽĨĞĐƌĞĞ-Law 5/2011 on Environmental Licensing 5

Article 4 Definition of Categories and Type of Environmental Assessment Procedure 1. The classification of projects is made in accordance with Annex I and II and is structured in the following categories: a. Category A - includes projects that may potentially cause significant environmental impacts, and are subject to the procedure of Environmental Impact Assessment (EIA), this based on Impact Analysis and Environmental Management Plan (EMP) in accordance with the provisions in this law. b. Category B - includes projects that may cause environmental impacts, and are subject to the procedure of Initial Environmental Examination (IEE), this based on the Environmental Management Plan in accordance with the provisions of this law. c. Category C - includes projects where environmental impacts are negligible or nonexistent, and not subject to any procedure for Environmental Assessment in accordance with the provisions of this law. 2. In the following cases, the category is determined by considering the severity of likely impacts: a. A project that might raise some or significant adverse impacts that do not fall into the category of Annex I and II; b. A project that may raise significant adverse impacts falls under the category of Annex II. 3. For purposes of this law, as Environmental Impact Statement (EIS), the document based on technical studies and consultations with public participation, prepared by the proponent, which contains a brief description of the project, expected development of the facts without the project, the identification and assessment of likely impacts, positive and negative, that the project may have on the environment, the environmental management measures designed to avoid, minimize or compensate for adverse impacts expected and a non-technical summary of this information in accordance with the provisions in statute. 4. For purposes of this law, as the Environmental Management Plan (EMP), a document that identifies the potential environmental impacts of construction, development and decommissioning and provides the way they are managed and monitored in accordance with the provisions in statute.

CHAPTER III ENVIRONMENTAL ASSESSMENT INFORMATION PHASE Article 5 Defining Project Scope 1. The proponent, for guidance on the investigation of the environmental assessment procedure, can be present Environmental Authority for consideration on the Definition of Scope. 2. It is understood by Definition of Scope of the project in the classification of the categories mentioned in this law and in addition, for projects of category A, the preparation of terms of reference. 3. The submission of the Scoping referred to in paragraph 2 of this article, has as preliminary Environmental Assessment and is optional. 4. For the purposes of paragraph 1 of this Article, the applicant must submit the project documents to the Environmental Authority, which shall contain the following information: a. Name of the promoter, and their contact data identifiers; b. The location and scale of the project; c. The plans and technical drawings of the project; d. Technical studies on the feasibility of the project; e. Opinions or other documents on the project emanating from other entities; f. Proposal for classification of the project category according to Annex 1 to this statute; g. Proposed Terms of Reference for the projects in Category A, according to the set complementary legislation. 5. In the act of presentation of documents, the proponent must settle the rate of phase information, as defined by statute. Article 6 Informational Phase Procedure 1. Within 15 days after receipt of the documentation referred to in the preceding article, the Authority issues an opinion on the Environmental Scoping. Unofficial translation ďǇ>Ă͛Ž,ĂŵƵƚƵŬŽĨĞĐƌĞĞ-Law 5/2011 on Environmental Licensing 6

2. The opinion of the Environmental Authority is made known by notice to the applicant, by publication in an announcement on its premises. 3. Whenever necessary the Environmental Authority may contact the tenderer, the community representatives in the area affected by the proposed project, as well as ministries related to it, to obtain information about the project. 4. The opinion mentioned in paragraph 1 of this article aims to guide the applicant and does not create any obligation for the proponent. 5. The period referred to in paragraph 1 of this article is informative on the stage and not be confused with the terms of the environmental assessment in accordance with the provisions of Article 12 and Article 19. Article 7 Right to Information The information phase does not inhibit the proposer at any time from requesting the Environmental Authority for information on any aspect of environmental licensing.

CHAPTER IV PROCEDURE FOR ENVIRONMENTAL IMPACT ASSESSMENT AND GRANT OF ENVIRONMENTAL LICENSE Article 8 Procedural steps For the purposes of environmental licensing, projects classified as Category A are subject to a procedure of Environmental Impact Assessment (EIA) and assignment of the Environmental License, which includes the following phases: a. Presentation of the project for evaluation and application for environmental license; b. Public Consultation; c. Technical Analysis and Opinion by the Evaluation Committee; d. Decision on the procedure of Environmental Impact Assessment and Allocation of the Environmental License; Article 9 Presentation of the Request for EIA and environmental license 1. The proposer of a project classified as Category A initiates the procedure for environmental impact assessment and environmental license application by submitting to the Environmental Authority, the following information and documentation: a. Name of the applicant, and their identifying information and contact details; b. Membership of any economic group, which includes the applicant; c. The location and scale of the Project; d. The plans and technical drawings of the Project; e. Technical studies on the feasibility of the Project; f. The opinions or other document on the project emanated from other entities; g. Any other document legally required by law to approve the project and to acquire it does not require proof of granting an environmental license; h. Environmental Impact Statement (EIS) including Non-Technical Summary and Environmental Management Plan (EMP) i. Application for grant of Environmental license; 2. The information and documentation referred to in the preceding paragraph are presented in proper form and as provided by statute. 3. The proponent must instruct the EIS and EMP in accordance with the provisions of paragraph 2, 3 and 4 of Article 4 and in accordance with relevant legislation. 4. In tabling the documents, the applicant must make the payment of the fee phase of Environmental Impact Assessment, as defined in statute. Unofficial translation ďǇ>Ă͛Ž,ĂŵƵƚƵŬŽĨĞĐƌĞĞ-Law 5/2011 on Environmental Licensing 7

Article 10 Evaluation Committee 1. For each category A project, within 10 days after submission of the documents referred to in the preceding article, the Superior Environmental Authority constitutes an Evaluation Committee, with a deliberative character, and with the aim of managing the EIA procedure, and which shall: a. Submit EIS and Environmental Management Plans for public consultation and comment on the proposals, suggestions and comments received; b. Verify the legal compliance and technical assessment of the EIS and its Environmental Management Plans; c. Promote and convene, as necessary, meetings with the proponent and other Interested parties; d. Request, when necessary, expertise from entities outside the Environmental Authority; e. Prepare the final technical report of EIA. 2. The Evaluation Committee is constituted, in odd number of members, by: a. A representative from the governmental department responsible for environmental impact assessment of industry and pollution control, who chairs the Commission; b. A representative from the governmental department responsible for tourism, commerce and industry; c. A representative from the governmental department responsible for the health sector; d. A representative from the governmental department responsible for the cultural sector; e. A representative from the governmental department responsible for the infrastructure sector; f. No less than two expert technicians in the area or sector related to the project; 3. In the case of a government agency becoming an advocate for project development, they are excluded from the committee to ensure the objectivity of the judgment. 4. The function rules of the Evaluation Committee are defined in statute. Article 11 Public Consultation 1. It is the role of the Assessment Commission to promote public consultation, which has the following objectives: a. Providing access to public documents referred to in Article 8 of this Act; b. Inform and enlighten the public about the project, including potential environmental impacts and their way of mitigation; c. Promote discussion about the EIS and EMP. 2. The duration of public consultation is 24 days, beginning 10 days after the formation of the Evaluation Committee. 3. Any member of the public may provide recommendations or proposals based on the EIS and EMP to the Evaluation Committee, under the deadline specified in paragraph 2 of this article. 4. The requirements and procedures for public participation are defined in statute. 5. Public consultation on Defining scope is necessary to discuss the project TOR, and the opinions of Interested parties must be reflected to the TOR. Article 12 Technical Analysis for Project Evaluation Committee 1. The deadline for technical analysis of the EIS and the respective GAP is 50 days and begins at 5 days after establishment of the Evaluation Commission under the provisions of this Decree-law. 2. For purposes of analysis and evaluation technique defined in paragraph 1 of this Article, the Evaluation Committee may, whenever necessary, contact the proponent͛s representatives (s) community (s) of the area potentially affected by the project, as well as the Ministries related to the project, to obtain additional information and clarifications regarding the same. 3. The Evaluation Committee may ask the tenderer once the reformulation of part or all of the studies or analysis that constitute the EIS and its Plans, based on recommendations received during the procedure of technical analysis and public consultation. 4. The period defined in paragraph 1 of this Article shall be suspended until the delivery by the proponent of the new studies and analysis. Unofficial translation ďǇ>Ă͛Ž,ĂŵƵƚƵŬŽĨĞĐƌĞĞ-Law 5/2011 on Environmental Licensing 8

5. The Evaluation Committee has at least a period of 10 days to evaluate the new documents, or the corresponding number of days remaining until the completion period of 40 days, provided that the remaining number of days not less than 10. 6. Should the applicant disagree with the request of the Evaluation Committee, as provided in paragraph 3 of this article, it must justify its reasons and submit them in writing to the Evaluation Committee. Article 13 Issuance of Opinion by the Evaluation Committee 1. The Evaluation Committee is responsible for submitting a final technical report, based on documentary evidence submitted by the tenderer, the contributions of public consultation and the conclusions of the technical analysis of the Evaluation Committee within the period specified in paragraph 1 of the preceding article. 2. The Evaluation Committee refers to the Higher Authority Environmental possess a technical opinion that the following recommendations: a. EIS and the EMP are recommended for approval, or b. EIS and the EMP are not recommended due to the negative environmental impacts outweigh the benefits. 3. In the procedure of EIA concluded that negative impacts cannot be mitigated, based on sciences and technologies existing now, or that the mitigation costs outweigh the positive impacts, the Evaluation Committee shall recommend the appropriate action at b ) of no. 2 of this article. Article 14 Decision on the Environmental Impact Assessment and Environmental License 1. It is for the Superior Environmental Authority, the final decision of the EIA procedure, based on a technical report of the Evaluation Committee in accordance with this law. 2. The decision of the Superior Environmental has the following wording: a. Approval of EIS and Environmental Management Plans and authorization to issue the environmental license of the project, or b. The EIS and Environmental Management Plans are not approved the project and the environmental licensing procedure is closed. 3. In the case of paragraph a) above, the decision should establish the conditions and restrictions deemed necessary to protect the environment and should be part of the environmental license. 4. The decision referred to in the preceding paragraph is made by order and within 15 days from the date of reception of the Technical Evaluation Committee and published in the Official Gazette.

CHAPTER V PROTECTION OF TRADITIONAL CUSTOMS AND DUTIES Article 15 Impacts and Benefits Agreement (IBA) 1. It is considered impacts and Benefits Agreement (IBA), the legal instrument of the private sphere governed by the Civil Code which defines the rights and obligations between the proponent and the legal representative of the community protection, respect for traditional land use, customs and that community rights and due compensation to the scale of potential environmental impacts identified in the Environmental Impact Statement for the project in question. 2. The Impacts and Benefits Agreement (IBA) is performed with the communities located around or near the proposed Category A and whose traditional land use, customs or traditional rights are potentially affected. Article 16 Negotiation of the IBA 1. The Impacts and Benefits Agreement (IBA) could be negotiated at any time after the publication of the decision about the environmental impact assessment. 2. This agreement follows the process of discussion between the proponent and the affected community, about the proposal to EIS and Environmental Management Plans. Unofficial translation ďǇ>Ă͛Ž,ĂŵƵƚƵŬŽĨĞĐƌĞĞ-Law 5/2011 on Environmental Licensing 9

3. At any time the community and the proponent may apply to the Environmental Authority to facilitate the negotiation of the IBA. 4. In case of conflict in the application of IBA parties may resort to competent court according to civil law. 5. The Impacts and Benefits Agreement will be subject to statute.

CHAPTER VI INITIAL ENVIRONMENTAL EXAMINATION (IEE) AND GRANT OF ENVIRONMENTAL LICENSE Article 17 Procedural steps 1. For the purposes of environmental licensing, projects classified as Category B, are subject to a procedure Initial Environmental Examination (IEE) and allocation of environmental license, which includes the following phases: a. Project Presentation and Request for Environmental License; b. Technical analysis and opinion from the Environmental Authority; c. Decision on the Initial Environmental Examination and Environmental Grant of License; Article 18 Project Presentation 1. The proposer of a project classified as Category B initiates the procedure for Initial Environmental Examination and application for granting an environmental license with the submission to the Environmental Authority, the following documents and information: a. Name of the applicant, and their identifying information and contact details; b. The location and scale of the project; c. The plans and technical drawings of the project; d. Technical study on the feasibility of the project; e. Opinions or other documents on the project issued by other entities. f. Environmental Management Plan (EMP); g. Application for grant of license Environmental. 2. The information and documentation referred to in the preceding paragraph are presented in proper form and manner prescribed in secondary legislation. 3. The proponent must instruct the EMP in accordance with the provisions of paragraph 2 of Article 4 and in accordance with relevant legislation. 4. In tabling the documents, the proponent must settle the rate of the phase of the Environmental Assessment Simplified defined in statute. 5. In the event that the Environmental Authority requires a public consultation for a proponent, which shall be held to discuss issues about the project. Article 19 Technical Analysis by the Environmental Authority 1. Initial Environmental Examination is the technical assessment and an opinion on the EMP from the Environmental Authority within 30 days from the filing date of the project. 2. For purposes of analysis and technical evaluation, the Environmental Authority may, whenever necessary, contact the proponent, as well as the ministries related to the project, to obtain additional information and clarifications regarding the same. 3. The Environmental Authority may ask the tenderer once the redesign of all or part of the EMP, based on technical analysis. 4. The period defined in paragraph 1 of this Article shall be suspended until the delivery by the proponent of the new EMP. 5. The Environmental Authority has at least a period of 10 days to review the new documents or the corresponding number of days remaining until the completion period of 30 days, provided that the number of days remaining is not less than 10. Unofficial translation ďǇ>Ă͛Ž,ĂŵƵƚƵŬŽĨĞĐƌĞĞ-Law 5/2011 on Environmental Licensing 10

6. If the applicant disagrees with the request of the Environmental Authority, as provided in paragraph 3 of this article, it must justify its reasons and submit them in writing to the Environmental Authority. Article 20 Endorsed by the Environmental Authority 1. The Environmental Authority is responsible for providing technical advice to Higher Authority Environmental, based on documentary evidence submitted by the proponent and the conclusions of the technical review of Environmental Assessment, and proposes that: a. that the EMP is recommended for approval, or b. that the EMP is not recommended because of the negative environmental impacts outweigh the benefits. 2. In the procedure of Initial Environmental Examination concluded that negative impacts cannot be mitigated, based on sciences and technologies existing now, or that mitigation costs are higher than the positive impacts, the Environmental Authority should recommend actions specified in paragraph b) No 1 of this article. Article 21 Decision on Environmental Assessment Simplified 1. It is for the Superior Environmental Authority, the final decision of the Environmental Assessment simplified procedure, based on technical advice from the Environmental Authority, in accordance with this law. 2. The decision of the Superior Environmental has the following wording: a. Approval of the EMP and authorization to issue the environmental license of the project, or b. No approval of the EMP and the procedure for licensing of the project is terminated. 3. In the case of paragraph a) above, the decision should establish the conditions and restrictions deemed necessary to protect the environment and should be part of the environmental license. 4. The decision referred to in the preceding paragraph is made by order and within 10 days from the date of receipt of technical advice by the Environmental Authority and published in the Official Gazette.

CHAPTER VII ENVIRONMENTAL LICENSE Article 22 Type of Environmental License 1. As a result of the order in favor of Superior Environmental Authority are two types of licenses issued under the category of project, including the Environmental License for Category A and Category B. Environmental License 2. Depending on the type of license, are an integral part thereof, the following documents: a. Category A - Environmental Impact Statement and Environmental Management Plan; b. Category B - Initial Environmental Examination and Environmental Management Plan. 3. The format and content of the environmental license in Category A and B will be defined in a diploma supplement. 4. The Environmental License is not transferable to another project belonging to the same proponent or a different proponent. 5. For projects of category C the Environment Authority supports the tenderer to maintain environmental management. Article 23 Issuance of Environmental License 1. The Environmental Authority is the entity responsible for issuing the environmental license. 2. The deadline for issuing a license is 10 days after the order of the authority referred to in paragraph 1 of the preceding article. 3. The tenderer shall be notified thereof in writing within 5 days after the deadline set in the previous paragraph. 4. The proponent must pay the fee for environmental license in accordance with the provisions of relevant legislation and within 10 days after receipt of the notification. However, project officers are exempt from environmental license fees. Unofficial translation ďǇ>Ă͛Ž,ĂŵƵƚƵŬŽĨĞĐƌĞĞ-Law 5/2011 on Environmental Licensing 11

5. No project can proceed to implementation without having the final decision of the evaluation procedure adopted, the issue of environmental license and payment of the environmental license, in accordance with the provisions of this Decree-law. Article 24 Duration and Renewal of Environmental License 1. The Environmental License for projects of category A and B have a duration of 2 years is renewable for equal period to complete the Environmental deactivation phase of the project. 2. The renewal is automatic upon payment of the renewal fee in accordance with the provisions of relevant legislation, and if not fulfilled the conditions laid down in Article 25.

CHAPTER VIII CHANGE OF ENVIRONMENTAL CONDITIONS OF LICENSE Article 25 Review of the Day and the EMP 1. The holder of a license is required to review the Environmental Impact Statement and Environmental Management Plan, which will be submitted to the Environmental Authority for review and approval, if he intends or has planned to carry out the following: a. Changes in the project that may significantly affect: i. the quantity and quality of waste discharges into the environment in accordance with the environmental legislation in force: ii. the physical area of the project and its size; b. Physical transfer of the project site; 2. The application of the preceding paragraph shall be made in form and is accompanied by the following documents: a. Proposed revision of the conditions and restrictions set forth in the Environmental Impact Statement and Environmental Management Plan for projects of category A, or b. Proposed revision of the conditions and restrictions set forth in the Environmental Management Plan for projects in Category B. 3. The application referred to in paragraph 1 of this article includes the weather required to make physical changes needed for the project. 4. The mandatory review of the documents referred to in paragraph 2 of this Article shall not prevent the holder to undertake the necessary changes to project documentation that the proposed amendment requires the project including the EIS and the Impacts and Benefits Agreement, to comply with this diploma. 5. The holder of the application must pay the license fee for the amendment of Environmental accordance with the provisions in statute. Article 26 Issuance of Opinion and Decision on the Review of the EMP 1. The Environmental Authority reviews the documentation submitted by the holder in accordance with the preceding article, within 30 days an opinion for Superior Environmental Authority: a. Favor of the proposed revision of the documents referred to above, or b. Not favorable and suggests the new conditions and restrictions to be included in the documents referred to above. 2. The Superior Environmental Authority within 15 days of issuing the decision on the review of the environmental license that takes the following forms: a. Approve the revised EMP and authorizes the issuance of new environmental license; b. Do not approve the revised EMP and requires the holder to add information or redo all or part of the documents specified in paragraph 2 of the preceding; c. Do not approve the revised EMP and the procedure for amending the environmental license is terminated. 3. The decision is notified to the owner five days after the deadline set out in paragraph 2 of this article is published in the Journal of the Republic. Unofficial translation ďǇ>Ă͛Ž,ĂŵƵƚƵŬŽĨĞĐƌĞĞ-Law 5/2011 on Environmental Licensing 12

Article 27 Deadline for implementation of the alterations 1. Upon receiving the notification regarding the decision in a) of paragraph 2 of the previous article, the proponent shall make the design changes within the time specified in the notice. 2. Should the applicant not proceed according to the defined in the previous and present no plausible explanation for this effect, the new environmental license review procedure relating to expire, and the proponent must submit a new request for review, if you want to act on the proposed changes. 3. For the purposes of the preceding paragraph and if the applicant submits valid excuse for not meeting the deadline is assigned the new term which shall not exceed half of the period defined in the notification referred to in paragraph 1 of this article. 4. Fulfilled defined in b) of paragraph 2 of the previous article, the holder shall submit documentation to appear at the Environmental Authority in accordance with the provisions of paragraph 1 of the preceding and following the prosecution until its final decision in accordance with the provisions of number 2 and 3 of the preceding article. 5. In the case of point c) of paragraph 2 of the previous article, the holder keeps the previous environmental license, with its classification and conditions set therein, and cannot make any changes to the project. Article 28 Change of Category of License In a situation of change of the environmental license for category B to category A, due to design changes that alter their nature, size, technical characteristics and location, the project must undergo environmental impact assessment and relevant procedures in accordance with the provisions of this law.

CHAPTER IX REGIME FOR PREVIOUS PROJECTS Article 29 Projects in Development and Construction Phase 1. Projects that fall into category A and B which are in development and construction procedure, and have been granted before the enactment of this law, environmental license to operate, must register with the Environmental Authority within 240 days after the entry into force of this Law; 2. After registering the Environmental Authority issuing the license Environmental. 3. The issuance of a license shall be in accordance with the provisions of this Decree-law. 4. Projects that fall into category A and B which are in development and construction procedure, but do not have the environmental license to operate, they should submit the project Environmental Assessment and Environmental License allocation, in accordance with the provisions of this Decree-law and within 120 days after entry into force of this law. 5. In case of breach of this Article, holders are subject to the offenses provided for in this law. Article 30 Projects in Evaluation Procedure 1. Projects classified as Category A or B and who meet the Environmental Assessment procedure in process can opt for the new Environmental Assessment procedure or proceed in accordance with the laws and regulations prior to entry into force of this law. 2. In the case of the previous tenderers must declare their choice of a new scheme through a specific form defined in statute.

CHAPTER X SURVEILLANCE AND MONITORING Article 31 Auditing 1. The Environmental Inspectorate has the duty to oversee the projects with environmental license for the construction, development and decommissioning, in order to determine if the holder meets the conditions of the environmental license in accordance with the provisions of this decree-law; Unofficial translation ďǇ>Ă͛Ž,ĂŵƵƚƵŬŽĨĞĐƌĞĞ-Law 5/2011 on Environmental Licensing 13

2. The properly identified representatives of the Inspectorate of the Environment, when on duty, may enter the premises of projects during working hours, with the following objectives: a. Inspect the premises of the environmental project; b. Identify and order the removal of any substance or material that you believe is the cause of pollution; c. Carry out the obligations ͞under the present law.͟ 3. In cases of suspected environmental crime, environmental inspection authority may request the judicial authorities for authorization to monitor after working hours in accordance with the provisions of existing legislation. 4. In exercising the powers provided in this article, the Inspectorate of Environment should: a. Cause the least disruption to their activities by the installation; b. Stay in the property only time reasonably necessary to undertake the review; c. Cooperate whenever possible, with responsibility for installation. 5. Representatives of the Environmental Inspectorate shall display their official identification when requested by the owner, and cannot enter or remain within the facility if not present such identification. 6. The holder is obliged to provide access and cooperate with representatives of the Environmental Inspectorate to enable them to carry out the functions described in paragraph 1 of this article. 7. The owner did not comply with the obligations of the previous incur penalties in accordance with the provisions of this Decree-law. Article 32 Reporting Requirements Anyone, provided they are properly identified, can inform and provide evidence will Inspectorate of Environment or the Environmental Authority, about the negative impacts on the environment or alleged infringement of this law caused by the implementation of any project phases, starting the review procedure set out in the preceding article. Article 33 Duty Holder͛s Monitoring and Reporting 1. The holder is obliged to monitor their activities in any phase of the project in accordance with the provisions of the EMP. 2. As a result of monitoring the holder shall: a. Inspection will provide the Environment all data that are solicited regarding the project; b. During the construction phase, to provide Inspection for the Environment an semiannual environmental report on the activities of the project; c. During the development phase to provide to the Inspectorate of the Environment, an annual environmental report on the activities of the project; d. During the deactivation phase, semester to provide the Inspectorate of the Environment an semiannual environmental report on the activities of the project; 3. Notwithstanding the provisions of this Act, the Inspectorate of the Environment can warn the owner and give him a deadline of 10 days in which to rectify the lack of obligation in accordance with the provisions of paragraph 2 of this article.

CHAPTER XI PENALTIES Article 34 Offenses 1. Breaches of this law constitute misdemeanors. 2. The offenses are punished and prosecuted in accordance with its general law, with the adjustments provided for in this law. 3. The fact that it is considered committed in the place where all or part and in any form of reimbursement, the agent acted, or in case of omission, should have acted, as well as one in which the typical result has been produced. 4. An attempt is punishable the same as committed criminal offense, especially reduced according to the legislation. Unofficial translation ďǇ>Ă͛Ž,ĂŵƵƚƵŬŽĨĞĐƌĞĞ-Law 5/2011 on Environmental Licensing 14

5. An offense punishable by a fine of $5,000 to $50,000 in the case of natural person, $25,000 to $250,000 in the case of legal person, the practice of any of the following offenses: e. The total or partial execution of a project classified as Category A and B: i. Contrary to the decisions set out under this statute; ii. Without prior completion of the procedure or the Environmental Assessment prior to the award of the Environmental License under the provisions of this statute; iii. Without completion of the procedure for issuing the Environmental License, pursuant to this statute; iv. Without payment of fees under this statute. f. The non-implementation of projects of category A or B, according to the defined in the EIS and the EMP approved pursuant to this Act and its supplementary regulations, in its phases of construction, development and decommissioning; g. Any obstacle or impediment, by the holder to carry out any check given by the Inspectorate of the Environment; h. Any project activity that causes environmental impact outside the scope of the environmental management plan approved; i. Compliance with its obligation to register the project with the Environmental Authority, in accordance with Article 29; j. Operation of facilities in the project without an environmental license; k. Operation of project facilities without adequate environmental license under the category of the project in accordance with the provisions of Article 28; l. Operation of project facilities whose environmental license is suspended or out of time; m. Failure to comply with the conditions of the environmental license. 6. If the proponent receives an economic benefit from the infringement exceeding the maximum fine, and there is no other means of restoring the situation to its condition before the infringement, the amount of the fine can be up to the amount of benefit. Article 35 Accessory penalties 1. Cumulatively with the fine, for projects classified as category A or B, the following penalties can be applied: a. Confiscate, to the State, ƚŚĞŚŽůĚĞƌ͛Ɛobjects used in committing the offense; b. Order the holder to rehabilitate, in whole, any place or area that has been affected by the Project, to the initial conditions prior to the offense; c. Suspend or cancel the environmental license; d. Suspend for two years the performance or the exercise of professional activities which depend on the authorization of public authority; e. Order the holder to the project to cease operations, either dismantled or destroyed; f. Freeze the bank accounts under the name of the applicant or holder, in cases where there is evidence of misappropriation of assets before the replacement of the conditions in paragraph 1(b) or to comply with the provisions of paragraph 2 of this article. 2. If it is not possible to restore the environmental conditions prior to the infringement referred to in b) above, the proponent is obliged to implement, according to guidance from the Higher Authority, environmental measures to reduce or offset the provoked impacts. Article 36 Application of Sanctions 1. The penalties provided for in Article 34 and Article 35 (a-e) are applied by the Superior Environmental Authority. 2. For the purposes of paragraph of Article 35, the Superior Environmental Authority asks the competent judicial authority to enforce its sanctions.

CHAPTER XII CHALLENGE OF DECISIONS Article 37 Administrative Procedure 1. Interested parties are entitled to request the modification or repeal of decisions referred to by this law: Unofficial translation ďǇ>Ă͛Ž,ĂŵƵƚƵŬŽĨĞĐƌĞĞ-Law 5/2011 on Environmental Licensing 15

a. By complaint to the author of the decision; b. by appeal to the superior of the author͛s decision. 2. To the grievance procedure and appeal applies the hierarchical Administrative Procedure in force.

CHAPTER XIII FINAL AND TRANSITIONAL PROVISIONS Article 38 Records and Information Access 1. The Environmental Authority maintains a register of environmental assessment procedures and the procedures for issuing environmental licenses held in accordance with the provisions of this law, including: a. documents relating to procedures for environmental assessment of any project; b. decisions taken by the Environmental Higher Authority about the stages of the Procedure for Environmental Assessment of any project; c. Opinions of communications and Evaluation Commission and the Environmental Authority; d. Environmental and licenses granted their EMP approved; e. Documents relating to previous projects in accordance with the provisions of Article 29 and 30 °. 2. The register of licenses issued must include the following information: a. The name of the business or activity for which the license is issued; b. The name of the owner or user of these sites or facilities; c. The type of activity or business; d. The specifications of the license, including the nature and amount of waste released from facilities or activities, the type of chemicals stored and used in local facilities, and others, as defined in the EMP corresponding to the project 3. The records are available to the public free of charge during normal working hours of the Environmental Authority. 4. Reproduction of any registration is charged to the public on the value of the cost of reproduction plus costs for the same services, according to statute.

Article 39 Regulatory Information Institution Sector Project 1. The Environmental Authority has informed the regulatory institution of the sector in the project environmental assessment on the environmental licensing procedure by sending him copies of notifications issued during the procedure. 2. The regulatory institution of the sector project in the preceding paragraph may at any time of the environmental licensing procedure of a project, request a meeting with the Environmental Authority to collect information on the same procedure with regard to deadlines. Article 40 Duty of Justification All decisions under this statute are made in writing and duly substantiated. Article 41 Deadlines and Forfeiture 1. The Superior Environmental Authority, in order properly grounded, may authorize the extension of any of the terms hereof, never lasting more than double the initial period. 2. All deadlines specified in this law are considered working days. 3. Projects with a license issued shall start its implementation from the date of notification of approval, the following deadlines: a. 2 years, for projects classified as Category A: b. 1 year, for projects classified as Category B. 4. The Environmental License for each project shall expire after the deadlines indicated in the preceding paragraph and provides a new procedure for Environmental Assessment, in the case of the applicant resubmit the project. Unofficial translation ďǇ>Ă͛Ž,ĂŵƵƚƵŬŽĨĞĐƌĞĞ-Law 5/2011 on Environmental Licensing 16

5. For the purposes of the preceding paragraph, under which the Environmental Authority to determine on a case where the procedures of the new procedure that Environmental Assessment need to be met. Article 42 Supplementary Regulations Are determined by statute, the following matters: a. Terms of Reference, EIS and EMP; b. Public Consultation Procedure; c. Impacts and Benefits Agreement; d. Status of the Evaluation Committee; e. Fees and other costs related to environmental licensing procedure; f. The proper forms for the environmental licensing procedure; g. Scheme for rehabilitation and decommissioning projects; h. Technical parameters of environmental issue for the various components of the environment. Article 43 Cost of Environmental Assessment Procedure 1. The costs for the preparation of Environmental Assessment, presentation of the necessary documentation for the environmental licensing procedure and related activities as the stage of public consultation are the responsibility of the proponent. 2. In the case of granting an environmental license, the costs of environmental monitoring and management of the project undertaken by the owner are the responsibility of it. 3. Expenditure on the remaining phases of the environmental licensing procedure are the responsibility of the state. Article 44 Enforcement of Environmental Law In addition to the provisions of this law, projects in categories A, B, C are subject to environmental legislation. Article 45 Transitional arrangements Until the adoption of legislation referred to in Article 42, regulations which do not violate the provisions of this Decree- law remain temporarily in force. Article 46 Abolition of regulation Former Government Regulation No. 51/1993 on applying Environmental Impact Assessment, and Minister of Environment Decree No. 39/1996 concerning regulation, Law number 23/1997 on Environmental Management and other relevant regulations on Environmental Impact Assessment will be abolished by application of the decree-law. Article 47 Entry into Force This law comes into force on the day following its publication. Approved by the Council of Ministers of 16 December 2010 The Prime Minister Kay Rala Xanana Gusmão The Minister of Economy and Development João Mendes Gonçalves Enacted on 4 February 2011 To be published. The President of the Republic José Ramos-Horta

Unofficial translation ďǇ>Ă͛Ž,ĂŵƵƚƵŬŽĨĞĐƌĞĞ-Law 5/2011 on Environmental Licensing 17

Annex I: Table of Classification of Category A Projects No SECTOR SCALE I MINING SECTOR 1 Mining and minerals (toxic) exploration All 2 Operation/exploration for non-metallic minerals, sand and gravel шϯϬ͕ϬϬϬDͬǇĞĂƌ 3 Processing and refinement of minerals / quarrying (nontoxic) шϯϬ͕ϬϬϬDͬǇĞĂƌ 4 Quarries, open pit mining and peat extraction in isolated areas шϯϬ͕ϬϬϬDͬǇĞĂƌ 5 Deep drilling Geothermal All II OIL INDUSTRY SECTOR 1 Extraction of Oil and Gas (for commercial purposes) All Extraction phase for the oil sector and the classification in accordance with this award represents all activities of physical preparation of the project area to beginning drilling for oil and gas ("Drilling") to the deactivation phase. 2 Pipelines to Transport Oil and Gas (offshore and onshore) exceeding 500 mm diameter and > 10 km length 3 Storage sites for Oil / Natural Gas / Petrochemicals or Chemicals шϭ͕ϬϬϬ͕ϬϬϬ> 4 Oil and Gas Refineries All III ENERGY SECTOR 1 Stations producing electricity and heat, fuel, steam and combined cycle шϮϬDtŽƌхϱ,Ă 2 Construction or expansion of hydroelectric power stations (except mini hydro and DC) шϭϱDtŽƌхϭϬ,Ă 3 Other types of power stations, including renewable energy (excluding hydro) (see note > 15 MW or> 10 Ha 1) 4 Suspended Electrical Transmission Lines, including substations шϭϭϬŬsĂŶĚшϮϬŬŵ IV INDUSTRY SECTOR 1 Industrial Parks All 2 Shipyards шϱ,ĂƐŝƚĞĂƌĞĂĂŶĚ installation area of ш15,000 m2 3 Treatment of hazardous materials (large-scale, determined by the environmental All authority) 4 Production of weapons, ammunition and explosives All V TRANSPORT SECTOR 1 Construction of a large road in a metropolitan or large city шϱŬŵ 2 Construction of national and regional roads шϭϬŬŵ 3 Construction of rural roads >ĞŶŐƚŚшϯϬŬŵ 4 Construction of bridges шϯϬϬŵ 5 Ports and port facilities шϱϬϬŐƌŽƐƐƚŽŶƐ 6 Construction and expansion of airports and airfields All 7 Construction and expansion of Heliports шϱ,Ă 8 Construction of railway lines and associated facilities All VI CIVIL CONSTRUCTION 1 Urban Development (including cleaning of land for housing) шϱ,Ă 2 Commercial units of a size for a commercial center шϮ,Ă 3 Construction of multi-story buildings and apartments шϮ,Ă VII SANITATION SECTOR 1 Elimination of hazardous waste All 2 Landfills and municipal solid waste deposits шϭϬϬƚŽŶƐͬĚĂǇ͕шϭϬϬ DͬĚĂǇ͕шϭϬ,Ă 3 Wastewater Treatment Stations шϭϬ͕ϬϬϬĨĂŵŝůŝĞƐͬĞƋ͘ 4 Facilities for recycling hazardous materials All 5 Facilities for recycling non-hazardous materials шϮ,Ă 6 Hospitals шϭϬϬrooms VIII WATER SECTOR 1 Expropriation of land (landfill) шϮϬ,Ă 2 Sea coast recovery projects шϮϱ,Ă Unofficial translation ďǇ>Ă͛Ž,ĂŵƵƚƵŬŽĨĞĐƌĞĞ-Law 5/2011 on Environmental Licensing 18

No SECTOR SCALE 3 Construction of a dam шϭϱŵŝŶŚĞŝŐŚƚŽƌ altered ĂƌĞĂшϮϬϬ,Ă 4 Marine dredging / Coastal protection works or river (to combat maritime erosion, to шϮϬ,Ă modify the coast, such as dams, culverts, jetties and other works of defense against the action of the sea) 5 Systems for collecting water from lakes, rivers, springs or other water sources Annual volume captured (excluding the soil or groundwater) > 1 million CBM / year 6 Ingestion of groundwater by drilling шϭϬ>ͬƐĞĐ͘ 7 Works for transfer of water by tunnel шϭŬŵ 8 Construction of aqueducts and water mains шϯŬŵ IX AGRICULTURAL, LIVESTOCK AND FORESTRY SECTORS 1 Irrigation systems (including irrigation and drainage infrastructure) шϭϬϬ,Ă 2 Clear the soil for conversion to agriculture (including intensive) шϭϬϬ,Ă 3 Plantations шϮϬŚĂ 4 Forests for logging шϮϱ,Ă 5 Development of rice fields in forest areas шϯ,Ă X TOURISM SECTOR 1 Large scale properties, areas or tourist offices шϮϬŚĂ 2 Construction and expansion of hotels шϭϬϬƌŽŽŵƐ͕ŽƌшϭϬ,Ă 3 Construction and expansion of apartments and tourist apartments along the sea coast шϭϬϬlocations 4 Golf courses шϭϬ,Ă 5 Construction of safari parks or zoos шϭϬ,Ă XI DEFENCE AND SECURITY SECTOR 1 Construction of Ammunition Storage Facilities All 2 Construction of Military Bases and Naval and Air All 3 Construction of combat training centers / firing ranges шϭϬϬ,Ă XII LOCATION FACTORS 1 Sensitive or valuable ecosystems (beaches, mangroves, coral reefs, protected areas, All marine areas) 2 unique and valuable landscape All 3 Archaeological and / or historic site All 4 Densely populated areas ZĞƐĞƚƚůĞŵĞŶƚшϯϬϬ persons 5 Occupied by cultural communities or tribes All 6 Geographically sensitive area All

Note 1 - Project Area includes the area required for plantation of biomass, for solar panels or wind turbines Unofficial translation ďǇ>Ă͛Ž,ĂŵƵƚƵŬŽĨĞĐƌĞĞ-Law 5/2011 on Environmental Licensing 19

Annex II: Table of Classification of Category B Projects No SECTOR SCALE I MINING SECTOR 1 Exploitation of non-metallic minerals (loga (?), sand and gravel) <30,000 CBM / year and шϱ͕ϬϬϬDͬǇĞĂƌ 2 Processing and refinement of minerals / quarrying (non toxic) <30,000 CBM / year and шϱ͕ϬϬϬDͬǇĞĂƌ 3 Quarries, open pit mining and peat extraction in isolated areas <30,000 CBM / year and шϱ͕ϬϬϬDͬǇĞĂƌ II PETROLEUM INDUSTRY SECTOR 1 Oil and Gas exploration: All Phase of oil exploration and classification under this award represents all data collection activities including seismic to support the planning of physical interventions in the extraction process. 2 Pipelines to Transport Oil and Gas (offshore and onshore) (see note 2) All outdoor facilities (not classified as A) 3 Storage sites for Oil / Natural Gas / Petrochemicals or Chemicals фϭ͕ϬϬϬ͕ϬϬϬ>Žƌш 200,000 L III ENERGY SECTOR 1 Stations producing electricity and heat, fuel, steam and combined cycle <20 MW or 2 to 5 Ha 2 Construction or expansion of hydroelectric power stations (except mini hydro and DC) <15 MW or 20 to 10 Ha 3 Renewable energy (excluding hydro) (see note 3) 2-15 MW or 20 to 10 Ha 4 Suspended Electrical Transmission Lines, including substations 25-110 kV IV INDUSTRY SECTOR 1 Any type of plant: ƐŝƚĞшϭ,ĂĂŶĚ a) Manufacture of coke (dry coal distillation), including gasification and liquefaction; ŝŶƐƚĂůůĂƚŝŽŶĂƌĞĂшϯ͕ϬϬϬ b) Steel industry; m2 c) Casting of Metals; d) Non-ferrous foundry industry; e) production of timber, including kiln drying, planing and sawing workshop, chemical treatment of wood and wood chips in the process; f) Machinery industry; g) Plant electricity supply; h) Petrochemical industry: production of petroleum; i) Pottery and / or soil and stone product manufacturing industry; j) Production of cement and lime; k) Food processing industry; l) Industrial production of starch; m) Workshop handling of flammable and/or hazardous materials (car repair shop, gas stations, etc.); n) Pharmaceuticals industry; o) Products) Pressed / molded wood (e.g., fiber board and particle and plywood); p) Other: Plants releasing environmental pollutant, noise, vibration, dust and/or smells, or plants handling flammable and/or hazardous materials (small scale, determined by the environmental authority); 2 Shipyards site area <5 ŚĂĂŶĚш1 Ha and installation area <15,000 m2 ĂŶĚш 3,000 m2 V TRANSPORT SECTOR 1 Rehabilitation of an existing road, excluding community road (including toll roads, All bridge crossing, each with two lanes) 2 Construction of bridges <300 m 3 Rehabilitation of ports and port facilities <500 gross tons 4 Rehabilitation of airports and airfields, or building a smaller facility at the airport All 5 Rehabilitation of heliports, or building a smaller facility at the heliport All Unofficial translation ďǇ>Ă͛Ž,ĂŵƵƚƵŬŽĨĞĐƌĞĞ-Law 5/2011 on Environmental Licensing 20

VI CIVIL CONSTRUCTION 1 Urban Development (including clearing of land for housing) 1-5 Ha 2 Commercial Units of size for a commercial center фϮ,ĂĂŶĚшϬ͘ϱ,Ă 3 Parking ш 1 Ha 4 Construction of multi-story buildings and apartments <2 Ha 5 Campsite of refugees and slums ш 1 Ha VII SANITATION SECTOR 1 Landfill and municipal solid waste deposits <100 ton / day, 1-100 CBM / day, 0.5 to 10 Ha 2 Wastewater Treatment Stations <10,000 families / eq. 3 Facilities for recycling non-hazardous materials <2 Ha 4 Hospitals <100 rooms VIII WATER SECTOR 1 Expropriation of land (landfill) <20 ha 2 Sea coast recovery projects area from 10 to 25 Ha 3 Construction of a dam <15m height 4 Marine dredging / Coastal protection works or river (to combat maritime erosion, to <20 Ha modify the coast, such as dams, culverts, jetties and other works of defense against the action of the sea) 5 Ingestion of groundwater by drilling <10 L / sec. 6 Works for transfer of water by tunnel <1 km 7 Construction of aqueducts and water mains <3 km IX AGRICULTURAL, LIVESTOCK AND FORESTRY SECTORS 1 Irrigation systems (including irrigation and drainage infrastructure) <100 Ha 2 Clear the soil for conversion to agriculture (including intensive) <100 Ha 3 Pigs (Production and Care) ш 2,500 m2 4 Birds (Production and Care) ш 2,500 m2 5 Operation of animals (cattle and sheep) ш 2,500 m2 6 Plantations <20 Ha 7 Forests for logging <25 Ha 8 Development of rice fields in forest areas <3 Ha X TOURISM SECTOR 1 Large scale properties, areas or tourist offices <20 Ha 2 Construction and expansion of hotels 50-100 rooms, or <10 Ha 3 Golf Courses <10 Ha 4 Marinas, ports and docks for recreation on lakes and reservoirs ш 50 berths for vessels with a length of 6m 5 Marinas, ports and docks for recreation on the seacoast ш 50 berths for vessels of 12m length 6 Construction of safari parks or zoos <10 Ha XI DEFENSE AND SECURITY SECTOR Construction of combat training centers / firing ranges Area <100 Ha

Note 2 - If there are situations where two or more parallel pipes or joints, and the size of which, taken together, is equivalent to a pipeline with the characteristics set out for Category A, the cumulative impact is considered and classified as Category A.

Note 3 - Project Area includes the area required for growing biomass, wind turbines

ANNEXES 2 - 3 Environmental Assessment, Classification of Categories of Project

Baucau Environmental Management Plan Aurecon

Table of Classification of Category A Projects

Table of Classification of Category B Projects

ANNEXES 4 - 10 Laboratory Tests Results in Baucau

Baucau Environmental Management Plan Aurecon

. MINISTÉRIO DAS OBRAS PÚBLICAS DIRECÇÃO NASIONAL DOS SECRETARIADO DO ESTADO SERVIÇOS DE ÁGUA ( DNSA ) ÁGUA, SANEAMENTO E URBANIZAÇÃO

Request for Water Quality Testing

Sample analysis reference : - Requesting Organization : ADB Description of the organization: AURECON Contact Person : Mr. MIKE PONSONBY Telephon : 78348171 On behalf of organization, I agree to pay the cost of test request below: Signature: √ Data and time sample was taken : 01/10/2014 Date and Time sample was received: 06/10/2014 Sample location specification : BAUCAU ( UAILIA SPRING ) Water Source: River Mountain stream Spring √ Well Others Sampled by : - Received in laboratory by: MARIO SOARES Approved to test by: MARIO SOARES & SIDONIO X. DE JESUS Cost Parameter Unit Request Result WHO/East Testing method (US$) test Timor Guideline Physical test 1.00 pH value - √ 7.8 6.5-8.5 pH Meter 1.00 E.Conductivity (µs/cm √ 455 NS Conductivity meter 1.00 TSS (mg/L) √ 0.01 NS Gravimetry 1.00 TDS (mg/L) √ 227 1000 Gravimetry 1.00 Salinity (‰) √ 0.2 NS Conductivity meter 1.00 Temperature (ºC) √ 27.1 NS Conductivity meter 1.00 Turbidity NTU √ 0.3 5 (NTU) Turbidity meter Chemical test 2.00 NH3-N mg/L √ ND 1.5 Spectrophotometer 2.00 NO3-N mg/L √ ND 10 (as NO3-N) Spectrophotometer 2.00 NO2-N mg/L √ 0.006 1 (as NO2-N) Spectrophotometer 1.00 Iron (Fe) mg/L √ 0.1 0.3 Spectrophotometer 2.00 Manganese (Mn) mg/L √ 0.5 0.5 Spectrophotometer 1.00 Fluoride mg/L √ 0.39 1.5 Spectrophotometer 2.00 Free chlorine mg/L √ ND 0.5 Comparator, 2.00 Ca.hardness mg/L √ 210 NS Titration 2.00 Arsenic mg/L √ ND 0.01 Comparator 2.00 T. Hardness mg/L √ 220 200 Titration 2.00 Total alkalinity mg/L √ 230 NS Titration 2- 2.00 Sulphate (SO4 ) mg/L √ 6 250 Spectrophotometer Bacteriological test 16.00 Total Coliform CFU/100mL √ 0 0 Membrane filtration 16.00 E.Coli CFU/100mL √ 0 0 Membrane filtration Total cost Remark Inspected by: X Total Hardness is high !

Head of DNSA Laboratory Legend: 1. NS: not set; ND: not detectable; NT: not tested; NR: not result; CFU: Colony Formed Unit; TNC: too numerous to count.

. MINISTÉRIO DAS OBRAS PÚBLICAS DIRECÇÃO NASIONAL DOS SECRETARIADO DO ESTADO SERVIÇOS DE ÁGUA ( DNSA ) ÁGUA, SANEAMENTO E URBANIZAÇÃO

Request for Water Quality Testing

Sample analysis reference : - Requesting Organization : ADB Description of the organization: AURECON Contact Person : Mr. MIKE PONSONBY Telephon : 78348171 On behalf of organization, I agree to pay the cost of test request below: Signature: √ Data and time sample was taken : 01/10/2014 Date and Time sample was received: 06/10/2014 Sample location specification : BAUCAU ( LAMEGUA RESERVOIR ) Water Source: River Mountain stream Spring Well Others Sampled by : - Received in laboratory by: MARIO SOARES Approved to test by: MARIO SOARES & SIDONIO X. DE JESUS Cost Parameter Unit Request Result WHO/East Testing method (US$) test Timor Guideline Physical test 1.00 pH value - √ 7.9 6.5-8.5 pH Meter 1.00 E.Conductivity (µs/cm √ 452 NS Conductivity meter 1.00 TSS (mg/L) √ 0.01 NS Gravimetry 1.00 TDS (mg/L) √ 226 1000 Gravimetry 1.00 Salinity (‰) √ 0.2 NS Conductivity meter 1.00 Temperature (ºC) √ 27.7 NS Conductivity meter 1.00 Turbidity NTU √ 0.3 5 (NTU) Turbidity meter Chemical test 2.00 NH3-N mg/L √ ND 1.5 Spectrophotometer 2.00 NO3-N mg/L √ ND 10 (as NO3-N) Spectrophotometer 2.00 NO2-N mg/L √ 0.014 1 (as NO2-N) Spectrophotometer 1.00 Iron (Fe) mg/L √ ND 0.3 Spectrophotometer 2.00 Manganese (Mn) mg/L √ 0.3 0.5 Spectrophotometer 1.00 Fluoride mg/L √ 0.48 1.5 Spectrophotometer 2.00 Free chlorine mg/L √ ND 0.5 Comparator, 2.00 Ca.hardness mg/L √ 210 NS Titration 2.00 Arsenic mg/L √ ND 0.01 Comparator 2.00 T. Hardness mg/L √ 240 200 Titration 2.00 Total alkalinity mg/L √ 220 NS Titration 2- 2.00 Sulphate (SO4 ) mg/L √ 6 250 Spectrophotometer Bacteriological test 16.00 Total Coliform CFU/100mL √ 0 0 Membrane filtration 16.00 E.Coli CFU/100mL √ 0 0 Membrane filtration Total cost Remark Inspected by: X Total Hardness is high !

Head of DNSA Laboratory Legend: 1. NS: not set; ND: not detectable; NT: not tested; NR: not result; CFU: Colony Formed Unit; TNC: too numerous to count.

. MINISTÉRIO DAS OBRAS PÚBLICAS DIRECÇÃO NASIONAL DOS SECRETARIADO DO ESTADO SERVIÇOS DE ÁGUA ( DNSA ) ÁGUA, SANEAMENTO E URBANIZAÇÃO

Request for Water Quality Testing

Sample analysis reference : - Requesting Organization : ADB Description of the organization: AURECON Contact Person : Mr. MIKE PONSONBY Telephon : 78348171 On behalf of organization, I agree to pay the cost of test request below: Signature: √ Data and time sample was taken : 01/10/2014 Date and Time sample was received: 06/10/2014 Sample location specification : BAUCAU ( RSS ) Water Source: River Mountain stream Spring Well Others Sampled by : - Received in laboratory by: MARIO SOARES Approved to test by: MARIO SOARES & SIDONIO X. DE JESUS Cost Parameter Unit Request Result WHO/East Testing method (US$) test Timor Guideline Physical test 1.00 pH value - √ 7.4 6.5-8.5 pH Meter 1.00 E.Conductivity (µs/cm √ 454 NS Conductivity meter 1.00 TSS (mg/L) √ 0.01 NS Gravimetry 1.00 TDS (mg/L) √ 227 1000 Gravimetry 1.00 Salinity (‰) √ 0.2 NS Conductivity meter 1.00 Temperature (ºC) √ 25.4 NS Conductivity meter 1.00 Turbidity NTU √ 0.2 5 (NTU) Turbidity meter Chemical test 2.00 NH3-N mg/L √ 0.6 1.5 Spectrophotometer 2.00 NO3-N mg/L √ 0.9 10 (as NO3-N) Spectrophotometer 2.00 NO2-N mg/L √ 0.001 1 (as NO2-N) Spectrophotometer 1.00 Iron (Fe) mg/L √ 0.1 0.3 Spectrophotometer 2.00 Manganese (Mn) mg/L √ ND 0.5 Spectrophotometer 1.00 Fluoride mg/L √ 0.20 1.5 Spectrophotometer 2.00 Free chlorine mg/L √ ND 0.5 Comparator, 2.00 Ca.hardness mg/L √ 225 NS Titration 2.00 Arsenic mg/L √ ND 0.01 Comparator 2.00 T. Hardness mg/L √ 240 200 Titration 2.00 Total alkalinity mg/L √ 220 NS Titration 2- 2.00 Sulphate (SO4 ) mg/L √ 5 250 Spectrophotometer Bacteriological test 16.00 Total Coliform CFU/100mL √ TNC 0 Membrane filtration 16.00 E.Coli CFU/100mL √ 1 0 Membrane filtration Total cost Remark Inspected by: X - Bacteriological is problem ! - Ca.hardness, T. Hardness, Total alkalinity is high ! Head of DNSA Laboratory Legend: 1. NS: not set; ND: not detectable; NT: not tested; NR: not result; CFU: Colony Formed Unit; TNC: too numerous to count.

. MINISTÉRIO DAS OBRAS PÚBLICAS DIRECÇÃO NASIONAL DOS SECRETARIADO DO ESTADO SERVIÇOS DE ÁGUA ( DNSA ) ÁGUA, SANEAMENTO E URBANIZAÇÃO

Request for Water Quality Testing

Sample analysis reference : - Requesting Organization : ADB Description of the organization: AURECON Contact Person : Mr. MIKE PONSONBY Telephon : 78348171 On behalf of organization, I agree to pay the cost of test request below: Signature: √ Data and time sample was taken : 01/10/2014 Date and Time sample was received: 06/10/2014 Sample location specification : BAUCAU ( RIAMARI HOSPITAL ) Water Source: River Mountain stream Spring Well Others Sampled by : - Received in laboratory by: MARIO SOARES Approved to test by: MARIO SOARES & SIDONIO X. DE JESUS Cost Parameter Unit Request Result WHO/East Testing method (US$) test Timor Guideline Physical test 1.00 pH value - √ 7.0 6.5-8.5 pH Meter 1.00 E.Conductivity (µs/cm √ 444 NS Conductivity meter 1.00 TSS (mg/L) √ 0.01 NS Gravimetry 1.00 TDS (mg/L) √ 222 1000 Gravimetry 1.00 Salinity (‰) √ 0.2 NS Conductivity meter 1.00 Temperature (ºC) √ 20.5 NS Conductivity meter 1.00 Turbidity NTU √ 0.4 5 (NTU) Turbidity meter Chemical test 2.00 NH3-N mg/L √ 0.8 1.5 Spectrophotometer 2.00 NO3-N mg/L √ 0.6 10 (as NO3-N) Spectrophotometer 2.00 NO2-N mg/L √ 0.002 1 (as NO2-N) Spectrophotometer 1.00 Iron (Fe) mg/L √ 0.01 0.3 Spectrophotometer 2.00 Manganese (Mn) mg/L √ ND 0.5 Spectrophotometer 1.00 Fluoride mg/L √ 0.18 1.5 Spectrophotometer 2.00 Free chlorine mg/L √ ND 0.5 Comparator, 2.00 Ca.hardness mg/L √ 230 NS Titration 2.00 Arsenic mg/L √ ND 0.01 Comparator 2.00 T. Hardness mg/L √ 245 200 Titration 2.00 Total alkalinity mg/L √ 220 NS Titration 2- 2.00 Sulphate (SO4 ) mg/L √ 6 250 Spectrophotometer Bacteriological test 16.00 Total Coliform CFU/100mL √ TNC 0 Membrane filtration 16.00 E.Coli CFU/100mL √ 3 0 Membrane filtration Total cost Remark Inspected by: X - Bacteriological is problem ! - Ca.hardness, T. Hardness, Total alkalinity is high ! Head of DNSA Laboratory Legend: 1. NS: not set; ND: not detectable; NT: not tested; NR: not result; CFU: Colony Formed Unit; TNC: too numerous to count.

. MINISTÉRIO DAS OBRAS PÚBLICAS DIRECÇÃO NASIONAL DOS SECRETARIADO DO ESTADO SERVIÇOS DE ÁGUA ( DNSA ) ÁGUA, SANEAMENTO E URBANIZAÇÃO

Request for Water Quality Testing

Sample analysis reference : - Requesting Organization : ADB Description of the organization: AURECON Contact Person : Mr. MIKE PONSONBY Telephon : 78348171 On behalf of organization, I agree to pay the cost of test request below: Signature: √ Data and time sample was taken : 01/10/2014 Date and Time sample was received: 06/10/2014 Sample location specification : BAUCAU ( TIRILOLO RESERVOIR ) Water Source: River Mountain stream Spring Well Others Sampled by : - Received in laboratory by: MARIO SOARES Approved to test by: MARIO SOARES & SIDONIO X. DE JESUS Cost Parameter Unit Request Result WHO/East Testing method (US$) test Timor Guideline Physical test 1.00 pH value - √ 7.9 6.5-8.5 pH Meter 1.00 E.Conductivity (µs/cm √ 386 NS Conductivity meter 1.00 TSS (mg/L) √ 0.02 NS Gravimetry 1.00 TDS (mg/L) √ 193 1000 Gravimetry 1.00 Salinity (‰) √ 0.2 NS Conductivity meter 1.00 Temperature (ºC) √ 26.9 NS Conductivity meter 1.00 Turbidity NTU √ 0.5 5 (NTU) Turbidity meter Chemical test 2.00 NH3-N mg/L √ ND 1.5 Spectrophotometer 2.00 NO3-N mg/L √ 0.1 10 (as NO3-N) Spectrophotometer 2.00 NO2-N mg/L √ 0.003 1 (as NO2-N) Spectrophotometer 1.00 Iron (Fe) mg/L √ 0.02 0.3 Spectrophotometer 2.00 Manganese (Mn) mg/L √ 0.5 0.5 Spectrophotometer 1.00 Fluoride mg/L √ 0.41 1.5 Spectrophotometer 2.00 Free chlorine mg/L √ ND 0.5 Comparator, 2.00 Ca.hardness mg/L √ 225 NS Titration 2.00 Arsenic mg/L √ ND 0.01 Comparator 2.00 T. Hardness mg/L √ 230 200 Titration 2.00 Total alkalinity mg/L √ 220 NS Titration 2- 2.00 Sulphate (SO4 ) mg/L √ 7 250 Spectrophotometer Bacteriological test 16.00 Total Coliform CFU/100mL √ 0 0 Membrane filtration 16.00 E.Coli CFU/100mL √ 0 0 Membrane filtration Total cost Remark Inspected by: X Total Hardness is high !

Head of DNSA Laboratory Legend: 1. NS: not set; ND: not detectable; NT: not tested; NR: not result; CFU: Colony Formed Unit; TNC: too numerous to count.

. MINISTÉRIO DAS OBRAS PÚBLICAS DIRECÇÃO NASIONAL DOS SECRETARIADO DO ESTADO SERVIÇOS DE ÁGUA ( DNSA ) ÁGUA, SANEAMENTO E URBANIZAÇÃO

Request for Water Quality Testing

Sample analysis reference : - Requesting Organization : ADB Description of the organization: AURECON Contact Person : Mr. MIKE PONSONBY Telephon : 78348171 On behalf of organization, I agree to pay the cost of test request below: Signature: √ Data and time sample was taken : 01/10/2014 Date and Time sample was received: 06/10/2014 Sample location specification : BAUCAU ( MAUCALI TAP STAND ) Water Source: River Mountain stream Spring Well Others Sampled by : - Received in laboratory by: MARIO SOARES Approved to test by: MARIO SOARES & SIDONIO X. DE JESUS Cost Parameter Unit Request Result WHO/East Testing method (US$) test Timor Guideline Physical test 1.00 pH value - √ 8.0 6.5-8.5 pH Meter 1.00 E.Conductivity (µs/cm √ 486 NS Conductivity meter 1.00 TSS (mg/L) √ 0.01 NS Gravimetry 1.00 TDS (mg/L) √ 243 1000 Gravimetry 1.00 Salinity (‰) √ 0.2 NS Conductivity meter 1.00 Temperature (ºC) √ 28.1 NS Conductivity meter 1.00 Turbidity NTU √ 0.3 5 (NTU) Turbidity meter Chemical test 2.00 NH3-N mg/L √ ND 1.5 Spectrophotometer 2.00 NO3-N mg/L √ 0.2 10 (as NO3-N) Spectrophotometer 2.00 NO2-N mg/L √ 0.002 1 (as NO2-N) Spectrophotometer 1.00 Iron (Fe) mg/L √ 0.01 0.3 Spectrophotometer 2.00 Manganese (Mn) mg/L √ 0.2 0.5 Spectrophotometer 1.00 Fluoride mg/L √ 0.62 1.5 Spectrophotometer 2.00 Free chlorine mg/L √ ND 0.5 Comparator, 2.00 Ca.hardness mg/L √ 205 NS Titration 2.00 Arsenic mg/L √ ND 0.01 Comparator 2.00 T. Hardness mg/L √ 240 200 Titration 2.00 Total alkalinity mg/L √ 200 NS Titration 2- 2.00 Sulphate (SO4 ) mg/L √ 7 250 Spectrophotometer Bacteriological test 16.00 Total Coliform CFU/100mL √ TNC 0 Membrane filtration 16.00 E.Coli CFU/100mL √ 4 0 Membrane filtration Total cost Remark Inspected by: X - Bacteriological is problem ! - Total Hardness is high ! Head of DNSA Laboratory Legend: 1. NS: not set; ND: not detectable; NT: not tested; NR: not result; CFU: Colony Formed Unit; TNC: too numerous to count.

. MINISTÉRIO DAS OBRAS PÚBLICAS DIRECÇÃO NASIONAL DOS SECRETARIADO DO ESTADO SERVIÇOS DE ÁGUA ( DNSA ) ÁGUA, SANEAMENTO E URBANIZAÇÃO

Request for Water Quality Testing

Sample analysis reference : - Requesting Organization : ADB Description of the organization: AURECON Contact Person : Mr. MIKE PONSONBY Telephon : 78348171 On behalf of organization, I agree to pay the cost of test request below: Signature: √ Data and time sample was taken : 01/10/2014 Date and Time sample was received: 06/10/2014 Sample location specification : BAUCAU ( NEW HOSPITAL / GROUNG WATER ) Water Source: River Mountain stream Spring Well Others Sampled by : - Received in laboratory by: MARIO SOARES Approved to test by: MARIO SOARES & SIDONIO X. DE JESUS Cost Parameter Unit Request Result WHO/East Testing method (US$) test Timor Guideline Physical test 1.00 pH value - √ 7.9 6.5-8.5 pH Meter 1.00 E.Conductivity (µs/cm √ 1367 NS Conductivity meter 1.00 TSS (mg/L) √ 0.02 NS Gravimetry 1.00 TDS (mg/L) √ 678 1000 Gravimetry 1.00 Salinity (‰) √ 0.7 NS Conductivity meter 1.00 Temperature (ºC) √ 28.6 NS Conductivity meter 1.00 Turbidity NTU √ 0.6 5 (NTU) Turbidity meter Chemical test 2.00 NH3-N mg/L √ ND 1.5 Spectrophotometer 2.00 NO3-N mg/L √ ND 10 (as NO3-N) Spectrophotometer 2.00 NO2-N mg/L √ 0.004 1 (as NO2-N) Spectrophotometer 1.00 Iron (Fe) mg/L √ 0.02 0.3 Spectrophotometer 2.00 Manganese (Mn) mg/L √ 0.3 0.5 Spectrophotometer 1.00 Fluoride mg/L √ 1.0 1.5 Spectrophotometer 2.00 Free chlorine mg/L √ ND 0.5 Comparator, 2.00 Ca.hardness mg/L √ 190 NS Titration 2.00 Arsenic mg/L √ ND 0.01 Comparator 2.00 T. Hardness mg/L √ 225 200 Titration 2.00 Total alkalinity mg/L √ 220 NS Titration 2- 2.00 Sulphate (SO4 ) mg/L √ 50 250 Spectrophotometer Bacteriological test 16.00 Total Coliform CFU/100mL √ 0 0 Membrane filtration 16.00 E.Coli CFU/100mL √ 0 0 Membrane filtration Total cost Remark Inspected by: X Total Hardness is high !

Head of DNSA Laboratory

Legend: 1. NS: not set; ND: not detectable; NT: not tested; NR: not result; CFU: Colony Formed Unit; TNC: too numerous to count.

MINISTÉRIO DAS OBRAS PÚBLICAS DIRECÇÃO NASIONAL DOS SECRETARIADO DO ESTADO SERVIÇOS DE ÁGUA ( DNSA ) ÁGUA, SANEAMENTO E URBANIZAÇÃO

Request for Water Quality Testing

Sample analysis reference : - Requesting Organization : ADB Description of the organization: AURECON Contact Person : Mr. MIKE PONSONBY Telephon : 78348171 On behalf of organization, I agree to pay the cost of test request below: Signature: √ Data and time sample was taken : 01/10/2014 Date and Time sample was received: 06/10/2014 Sample location specification : BAUCAU ( NEW SPRING NEAR AMALIA RES ) Water Source: River Mountain stream Spring Well Others Sampled by : - Received in laboratory by: MARIO SOARES Approved to test by: MARIO SOARES & SIDONIO X. DE JESUS Cost Parameter Unit Request Result WHO/East Testing method (US$) test Timor Guideline Physical test 1.00 pH value - √ 7.8 6.5-8.5 pH Meter 1.00 E.Conductivity (µs/cm √ 551 NS Conductivity meter 1.00 TSS (mg/L) √ 0.02 NS Gravimetry 1.00 TDS (mg/L) √ 275 1000 Gravimetry 1.00 Salinity (‰) √ 0.3 NS Conductivity meter 1.00 Temperature (ºC) √ 27.6 NS Conductivity meter 1.00 Turbidity NTU √ 0.3 5 (NTU) Turbidity meter Chemical test 2.00 NH3-N mg/L √ ND 1.5 Spectrophotometer 2.00 NO3-N mg/L √ 0.4 10 (as NO3-N) Spectrophotometer 2.00 NO2-N mg/L √ 0.003 1 (as NO2-N) Spectrophotometer 1.00 Iron (Fe) mg/L √ 0.01 0.3 Spectrophotometer 2.00 Manganese (Mn) mg/L √ 0.2 0.5 Spectrophotometer 1.00 Fluoride mg/L √ 0.38 1.5 Spectrophotometer 2.00 Free chlorine mg/L √ ND 0.5 Comparator, 2.00 Ca.hardness mg/L √ 200 NS Titration 2.00 Arsenic mg/L √ ND 0.01 Comparator 2.00 T. Hardness mg/L √ 205 200 Titration 2.00 Total alkalinity mg/L √ 210 NS Titration 2- 2.00 Sulphate (SO4 ) mg/L √ 7 250 Spectrophotometer Bacteriological test 16.00 Total Coliform CFU/100mL √ TNC 0 Membrane filtration 16.00 E.Coli CFU/100mL √ TNC 0 Membrane filtration Total cost Remark Inspected by: X Bacteriological is problem !

Head of DNSA Laboratory

Legend: 1. NS: not set; ND: not detectable; NT: not tested; NR: not result; CFU: Colony Formed Unit; TNC: too numerous to count.

ANNEX 11 Minutes of Stakeholders’ Consultation Conference

Baucau Environmental Management Plan Aurecon

Minutes of the Stakeholders’ Consultation Conference held at Baucau, Timor Leste on March 25, 2015 at Baucau, Sub-District Meeting Room

The conference started at 9:35am with an introduction given by Mr. Nelson Gutierrez, Chief of DAA and followed by the discussion of the agenda of the Stakeholders’ Consultation Conference by Ms. Eleanor M. Pintor. The questionnaire was administered by Ms. Ana Carla Carrascalon- Gomes through a classroom type where at the same time responses have been gathered. There being no other discussant, the presentation of the Draft Masterplan for Viqueque followed which was presented and discussed by Engr. Cancio Paulo Dias Quintas and this was followed by the presentation of the anticipated environmental impact assessment and its mitigating measures including the different climate change parameters its impact and with its corresponding mitigating measures that is affecting water resources, by Ms. Pintor and explained and discussed in Tetun by Ms. Ana Carla Carrascalon-Gomes. The following were the responses of the participants on the questionnaire: 1) Everyone agreed to have the project implemented; 2) They didn’t answer to the question but they said that they anticipate environmental impacts of the project but if everyone is involve and environmental recommendations can be done and regulated; (2 & 3 questions) 3) Yes they will do it and normally NGOs are involve including Kailalu, CDC, Forestry and the Community Baguia; (4) 4) If there is too much water there will be flooding in the area (5); 5) The water belongs to everyone, NGOs and government want to implement water spply projects need to consider how to convince the people or how to educate people how to use water wisely and respect other people’s need for water. 90% of the water pipes in Baucau are above ground and this needs to be resolved (Mr. Nelson). The open forum was facilitated by Ms. Ana Carla Carrascalon-Gomes and following were the participants’ clarifications, questions, concerns and issues:

• Chief Suco of Caibada, Jose Antonio da Costa – clarified that population in 2010 Census data is not correct (presentation of Cancio); Second question was how many people in the community will benefit the project; how many sources have been identified. There is a big water source in my Suco that is not being used if needed he is ready to allow to use it as it is 50 meters from the road. • The Chief of Suco from Tirilolo, Ricardo Belo – said he was happy on the presentation because his Suco was included in the plan. Tirilolo has six aldeias (villages) if possible can the plan increase the number of tanks so that the other four aldeias can also access water because they have no water since Portuguese time. They use to have water but because Timorese beliefs and tradition was not followed, the water dried up. • Chief Suco Bahu, Eleuterio Alberto Boavida – he said before carrying out preparation,comprehensive studies must be done because if they link this to the aquifer what would be the impact? • Environment Representative, Duarte Xavier – he said that there is a need for a comprehensive study on other small springs in the area and to put D 13 (dye) and see if the springs are connected with each other. Watershed at Planaltu, designated area must be larger to secure the water source and reforestation. Need to share information and need for water treatment.

Closing Remarks:

• Senior Baltazar Belo, representative of the Municipal Administrator - This is a good opportunity for us because we have a lot of water but difficult to access. We need coordination to work together to find the water and access it. • Senior Nelson Chief of SAS – said we have a big problem especially in Kotabaru. Bore hole has to be successful so as to support Wailia source. We all know the water is underground we ask all local authorities to work in cooperation to conserve and regenerate water to prevent it from drying out. • Seniora Regina de Sousa, Sub-district Administrator – we are little scared of the impact of drilling, if there is a negative impact we need to be united and work together and need comprehensive studies to prevent negative impacts to the community/ies.

ANNEX 12 Photo documentation of the Stakeholder’s Conference

Baucau Environmental Management Plan Aurecon

Pictures Taken during the Stakeholder’s Consultation Conference at Baucau

Preliminary Meeting with Mr. Nelson Gutierrez, From right: Mr. Baltazar Belo, District Administrator; Chief of DNSA/DAA, Baucau and Team of Mr. Nelson Gutierrez, Chief DNSA/DAA; and Ms. Consultants Regina de Sousa, Sub-district Administrator

Opening Program Guests: Ms. Regina de Sousa, Sub-district Administrator, Mr. Nelson Gutierrez, Chief DNSA/DAA, Mr. Baltazar Belo, District Administrator, Ms. Carla Gomez and Engr. Cancio Quintas

The Stakeholder’s Consultation participants in Engr. Cansio Quintas discussing the technical Baucau District during the discussion of the aspect of the project project.

ANNEX 13 Attendance Sheet of the Stakeholders’ Consultation Conference

Baucau Environmental Management Plan Aurecon

ANNEX 14 Environmental Management Plan Matrix

Baucau Environmental Management Plan Aurecon

Annex 14. Environmental Management and Monitoring Plan/Budget of Baucau District

Project Potential Mitigation Cost of Responsible Cost for Development Impacts Measures Mitigation Organization/s Monitoring Plan Monitoring Stage Measures Ministries and Monitoring Responsible Frequency (US $) and (US $) Directorate/s Indicator/s Organization/s Activities (1) (2) (3) (4) (5) (6) (7) (8) (9) I. Design Stage 1.1 Project . Environment . Careful design . Cost shall . DNSA . Restore . DNSA/DAA . Once . Inclusion in site/location al aesthetics to minimize/ be . DoE and/or . Contractor the project degradation offset losses; determined . DAA and district improve the . DoE detailed . Loss of . Include in the by DAA in offices in environmental design terrestrial design, re- coordination Baucau aesthetics preparation ecology greening with Baucau values of the by program of the district project site. the PMU/ site offices and Consultant (if DoE during any) the detailed DNSA/DAA design and preparation Contractor 1.2 Land . Contractor to . Chosen site . Cost shall . DNSA/DAA . Land . Contractor . Once, but . Inclusion in acquisition determine must have be . Baucau District transferred to . DoE needs to be the project and the area lesser determined office in-charge DNSA/DAA or . DNSA’s Social verified if detailed compensation needed for vegetation to by of land tax, by the Development land design for the site of their camp, be removed; DAA in titling, etc. Contractor/ Specialist transferred preparation construction facilities and coordination . Contractor . Landowner is already by facilities equipment with Baucau satisfied with the PMU/ shed; district the pay Consultant (if . The offices and any) contractor to DoE during DNSA/DAA pay the the detailed and landowner of design Contractor the area to preparation be utilize for their operation. 1.3 Inclusion in . Occurrence . Make use of . Cost shall . DNSA/DAA . Construction . DNSA/DAA . Once, but . Inclusion in the design: of runoff and existing be . Contractor design . Contractor needs the project 1.3.1 access soil erosion; pathways to determined specifications . DoE to be verified detailed road with a . Deterioration avoid land area by the in the design design provision of water to be acquired; selected and preparation of storm quality and minimize contractor specifications by water environmental the PMU/ drainage degradation. Consultant (if . Well graded any) DNSA/ road design DAA and with adequate Contractor Project Potential Mitigation Cost of Responsible Cost for Development Impacts Measures Mitigation Organization/s Monitoring Plan Monitoring Stage Measures Ministries and Monitoring Responsible Frequency (US $) and (US $) Directorate/s Indicator/s Organization/s Activities (1) (2) (3) (4) (5) (6) (7) (8) (9) outlets and stable discharge areas . Design of soil erosion measures . Design of silt protector on the discharge area to minimize turbidity of water 1.3.2 provision . Environmental . Adequate . Cost shall . DNSA/DAA . Maintain . DNSA/DAA . Once, but . Inclusion in of borrow degradation design in the be . Contractor and/or . Contractor needs to be the project pit area/s restoration of determined improve the . Environmental/ verified in detailed borrow pit by the environmental Pollution Control the design design area/s selected aesthetics Officer (EO/PCO to and preparation contractor be selected in specifications by coordination with the PMU/ DoE) Consultant (if any) DNSA/ DAA and Contractor

1.3.3provision . Health hazards . Designate . Cost shall . DNSA/DAA . Maintain . DNSA/DAA . Once, but . Inclusion in of garbage and risks to garbage be . Contractor cleanliness . Contractor needs to be the project disposal workers and disposal area determined and healthy . Environmental/ verified in detailed area/s community within the by the surroundings Pollution Control the design design project site selected within the Officer (EO/PCO to and preparation . Implement contractor project site be selected in specifications by garbage coordination with the PMU/ segregation DoE) Consultant (if within the any) DNSA/ project site DAA and Contractor

1.3.4provision . Health . Designate an . Cost shall . DNSA/SAA . Maintain a . DNSA/DAA . Once, but . Inclusion in of storage hazards and area which is be . Contractor health . Contractor needs to be the project area of risks to dry covered determined hazard and . Environmental/ verified in detailed hazardous workers and and far from by the risks free Pollution Control the design design materials community workers camp Officer (EO/PCO to and Project Potential Mitigation Cost of Responsible Cost for Development Impacts Measures Mitigation Organization/s Monitoring Plan Monitoring Stage Measures Ministries and Monitoring Responsible Frequency (US $) and (US $) Directorate/s Indicator/s Organization/s Activities (1) (2) (3) (4) (5) (6) (7) (8) (9) selected working be selected in specifications preparation contractor environment coordination with by DoE) the PMU/ Consultant (if any) DNSA/ DAA and contractor 1.3.5Provision . Healthy; . Awareness . Cost shall . DNSA/DAA . Maintain a . DNSA/DAA . Once, but . Inclusion in of budget hazards and building and be . Contractor health . Contractor needs to be the project for training risks free application of determined hazard and . Environmental/ verified in detailed construction working knowledge by by the risks free Pollution Control the design design personnel environment. the selected working Officer (EO/PCO to and preparation and workers construction contractor environment be selected in specifications by regarding personnel and coordination with the PMU/ environment, workers DoE) Consultant (if workplace any) DNSA/ safety and DAA and occupational contractor health 1.4 Establishing . Ascertain . Gather water . Cost shall . DNSA/DAA . Keep track on . DNSA/DAA . Quarterly and . Inclusion in of benchmark community samples on be . Contractor the results of . Contractor during the the project data and on water designated determined the laboratory . Environmental/ operation detailed information quality based sampling by the tests. Pollution Control phase design for on WHO and points and selected Officer (EO/PCO to becomes a preparation monitoring GoTL know the contractor be selected in regular by water standards physical, coordination with activity the PMU/ quality based chemical and DoE) Consultant (if on WHO and bacteriology any) DNSA/ GoTL parameters DAA and standards through contractor laboratory tests by DoE accredited laboratory 1.5Formulation . Widen . Community . Cost shall . DNSA/DAA . Thickening of . DNSA/SAA . Once, but . Inclusion in of the recharge participation in be . Baucau tree canopy or . Contractor needs to be the project watershed area of the the restoration determined District Office re-growth of . Environmental/ verified in detailed management aquifer of denuded by the . Contractor terrestrial Pollution Control the design design plan . Improve forest/ selected ecology Officer (EO/PCO to and preparation and/or watershed area; contractor be selected in specifications by Increase . Pass a law, coordination with the PMU/ volume of ordinances, DoE) Consultant (if policies and any) DNSA/ Project Potential Mitigation Cost of Responsible Cost for Development Impacts Measures Mitigation Organization/s Monitoring Plan Monitoring Stage Measures Ministries and Monitoring Responsible Frequency (US $) and (US $) Directorate/s Indicator/s Organization/s Activities (1) (2) (3) (4) (5) (6) (7) (8) (9) river guidelines in DAA and discharge banning and/or contractor . Increase regulating vegetation people from cover in the using project area. watershed areas as agricultural production areas; and as residential area. 1.6 Inclusion in . Avoid early . Consider in the . Cost shall . DNSA/SAA . Project . DNSA/SAA . Once, but . Inclusion in the overall failure and/or design climate be . Contractor structures and . Contractor needs to be the project project destruction of risk forecast of determined facilities can . Environmental/ verified in detailed design project Timor Leste; by the withstand Pollution Control the design design consideration structures geo-hazards, selected unexpected Officer (EO/PCO to and preparation of climate and facilities and other contractor change in be selected in specifications by change natural climatic coordination with the PMU/ requirements phenomenon condition DoE) Consultant (if any) DNSA/ DAA and contractor II. Construction Stage 2.1 Site . Loss of . Follow and . Contractor . Contractor . Restore and . PM of the Contractor . Once, but . Contractor’s Preparation terrestrial implement the determine improve the and DNSA/DAA verify and cost/ (Land ecology re- greening and pays the environmental . Environmental/ compare payment to clearing, design of the cost incurred aesthetic Pollution Control with the be staking etc.) area values of the Officer (EO/PCO to EMP for approved project site. be installed in construction by coordination with stage DNSA/DAA DoE) attached to Bid documents 2.2 Access road . Loss of . Make use of . Contractor . Contractor . Restore and . PM of the Contractor . Once, but . Contractor’s Construction terrestrial existing determine improve the and DNSA/DAA verify and cost/ and/or ecology; pathways to and pays the environmental . Environmental/ compare payment to Improvement . Occurrence avoid land area cost incurred aesthetic Pollution Control with the be of runoff and to be acquired; values of the Officer (EO/PCO to EMP for approved soil erosion; and minimize access road. be installed in construction by . Dust environmental coordination with stage DNSA/DAA emission degradation. DoE) attached to Project Potential Mitigation Cost of Responsible Cost for Development Impacts Measures Mitigation Organization/s Monitoring Plan Monitoring Stage Measures Ministries and Monitoring Responsible Frequency (US $) and (US $) Directorate/s Indicator/s Organization/s Activities (1) (2) (3) (4) (5) (6) (7) (8) (9) . Increase . Well graded Bid turbidity in road design documents river systems with adequate outlets and stable discharge areas . Installation of dikes for soil erosion protection . Installation of silt protector on the discharge area to minimize turbidity of water . Daily watering of newly opened area and/or exposed land/soil to minimize dust emission especially in areas where there are inhabitants. . Avoid burning of removed vegetation. Dispose removed vegetation to designated garbage disposal area. Encourage local people to make use of removed vegetation such as composting. Project Potential Mitigation Cost of Responsible Cost for Development Impacts Measures Mitigation Organization/s Monitoring Plan Monitoring Stage Measures Ministries and Monitoring Responsible Frequency (US $) and (US $) Directorate/s Indicator/s Organization/s Activities (1) (2) (3) (4) (5) (6) (7) (8) (9) 2.3 Moving in & . Increase dust . Daily watering . Contractor . Contractor . No complaints . PM of the Contractor . Once a month, . Contractor’s movement of emission of the access determine from villagers and DNSA/SAA but verify and cost/ construction and/or total road especially and pays the on dust and . Environmental/ compare with payment to heavy suspended in areas where cost incurred noise pollution Pollution Control the EMP for be equipment, particles there are . No incidence of Officer (EO/PCO to be construction approved and other (TSP) in the inhabitants respiratory installed in stage attached by construction atmosphere ailments in coordination with DoE) to Bid DNSA/DAA related tools, . Increase . Working hours nearby documents materials, etc noise and must be limited villagers due to disturbance during daytime. dust pollution to nearby villages . Provision of ear protection equipment to workers in place/s where noise reach 80 (dB(A)) 2.4 Hauling of . Soil particles . Ensure that . Contractor . Contractor . No . PM of the Contractor . Once, but . Contractor’s Construction and trucks hauling determine complaints and DNSA/DAA verify and cost/ materials, aggregates soil, sand and and pays the receive from . Environmental/ compare payment to sand, gravel, may fall or other cost incurred villagers on Pollution Control with the be etc. drop along construction soil particles Officer (EO/PCO to EMP for approved the road and aggregates are and be installed in construction by hit passers- properly and aggregates coordination with stage DNSA/DAA by tightly covered droppings DoE) attached to along road Bid side. documents 2.5 Construction . Loss of . Contractor’s . Contractor . Contractor . Restore . PM of the Contractor . Once, but . Contractor’s of terrestrial obligation to determine and/or and DNSA/DAA verify and cost/ Contractors’ ecology; restore the area and pays the improve the . Environmental/Pollutio compare payment to camp site . Environment and leaving cost incurred environment n Control Officer with the be and al aesthetics without al aesthetic (EO/PCO to be EMP for approved facilities degradation hazardous values of the installed in construction by materials that project site. coordination with DoE) stage DNSA/DAA will harm both . Maintain attached to the humans and cleanliness Bid flora and fauna of the documents in the area surroundings within the 2.5.1 Workers project site. issues: . Good Camp site and Project Potential Mitigation Cost of Responsible Cost for Development Impacts Measures Mitigation Organization/s Monitoring Plan Monitoring Stage Measures Ministries and Monitoring Responsible Frequency (US $) and (US $) Directorate/s Indicator/s Organization/s Activities (1) (2) (3) (4) (5) (6) (7) (8) (9) . Location of . Social following policy . No camp and conflict from in managing to complaints employment poor location avoid conflict from of local labor of camp and among workers; construction force; bias in . Identified personnel employment potential project and workers; policy of local beneficiaries workers not are first priority hired in the hiring of workers . Provide potable water, well . Provision of . Workers poor balanced and adequate health will adequate food living cause low rations; and condition output recreational facilities . Contractor to provide gas and . Use of fuel . Loss of kerosene for . No evidence wood in forests trees water heating of rampant cooking food and cooking tree cuttings, and heating food wildlife water . Contractor must hunting and enforce policy plant . Hunting of . Loss of and agreement pouching wildlife and biodiversity in hiring plant workers the pouching strict prohibition of hunting wildlife and plant pouching for sale. 2.6 Quarrying of . Loss of . Contractor’s . Contractor . Contractor . Restore and . PM of the . Once, but . Contractor’s aggregates terrestrial obligation is to determine improve the Contractor and verify and cost and from ecology; restore the area and pays the environment DNSA/DAA compare payment to designated . Environmental by putting it cost incurred al aesthetic . Environmental/ with the be borrow pit aesthetics back the topsoil values of the Pollution Control EMP for approved area degradation and re-plant the project site. Officer (EO/PCO to construction by area with what be installed in stage DNSA/DAA is the existing coordination with attached to vegetation it DoE) Bid has prior to documents Project Potential Mitigation Cost of Responsible Cost for Development Impacts Measures Mitigation Organization/s Monitoring Plan Monitoring Stage Measures Ministries and Monitoring Responsible Frequency (US $) and (US $) Directorate/s Indicator/s Organization/s Activities (1) (2) (3) (4) (5) (6) (7) (8) (9) quarrying activities; . Install dikes to prevent soil erosion 27.Installation of . Prevention of . Appropriate . Contractor . Contractor . Prevent . PM of the . Once, but . Contractor’s construction construction installation of determine and/or Contractor and verify and cost and related sign- related signages and and pays the minimize DNSA/DAA compare payment to ages and/or accidents other early cost incurred occurrence . Environmental/ with the be approved early warning warning signs in of accidents Pollution Control EMP for by DNSA/ signs to designated Officer (EO/PCO to construction DAA ensure public, areas. be installed in stage employee and coordination with attached to workers’ DoE) Bid safety documents 2.8 Construction . Loss of . Contractor’s . Contractor . Contractor . Construction . PM of the . Once, but . Contractor’s of the ff. terrestrial obligation is to determine site is well Contractor and verify and cost and project ecology; restore the and pays kept and DNSA/DAA compare payment to components . Environment project site cost incurred construction . Environmental/ with the be approved (structures & al aesthetics . Avoid burning policy is Pollution Control EMP for by facilities): degradation; of removed environmental Officer (EO/PCO to construction DNSA/DAA 1.Water source . Deterioration vegetation. friendly be installed in stage Development of water Dispose coordination with attached to 2.Storages quality; removed DoE) Bid Raw water . Loss of vegetation to documents storages aquatic designated New town habitat garbage ground level disposal area. tank . Encourage local New town people to make Elevated use of removed Tank vegetation such (Telkom) as composting. Adarai tank Trilolo tank . Installation of Wainiki tank silt protector or Lamegua sediment traps Tank to minimize Lower tank turbidity 3.Transmission downstream of Mains the river and Raw water hence, avert Main Project Potential Mitigation Cost of Responsible Cost for Development Impacts Measures Mitigation Organization/s Monitoring Plan Monitoring Stage Measures Ministries and Monitoring Responsible Frequency (US $) and (US $) Directorate/s Indicator/s Organization/s Activities (1) (2) (3) (4) (5) (6) (7) (8) (9) Zone 3 trans- loss of aquatic mission habitat Zone 1 . Contractor is transmission not allowed to Zone 4 use transmission Polychlorinate Zone 2, 5, 7 d Biphynels & 8 (PCB) as transmission dielectric Zone 6 insulation transmission and/or cooling 4.Primary transformer Distribution with liquid Mains containing 5.Pumping PCB due to its Facility potential 6.Ditribution harmful effects Network on human 7.Service health and the Connections environment Domestic Non Domestic Public Tap 8.Water Treatment 9.Miscellaneous O & M Bldg Warehouse Tools and equipment

2.9 Clearing and . Health . Minimize . Contractor . Contractor . Restoration . PM of the . Once, but . Contractor’s clean up the hazards and diseases and determine of site such Contractor and verify and cost/payment area within risks to illnesses in the and pays as: sites DNSA/DAA compare to be and employees construction cost incurred cleared and . Environmental/ with the approved by surrounding and site; cleaned; Pollution Control EMP for DNSA/DAA their camp construction . This effort will landscaped Officer (EO/PCO to construction prior and/or workers and encourage and and re- be installed in stage upon project surrounding influence the greening the coordination with attached to completion inhabitants Sucos/Altea to site. DoE) Bid clean up their documents areas Project Potential Mitigation Cost of Responsible Cost for Development Impacts Measures Mitigation Organization/s Monitoring Plan Monitoring Stage Measures Ministries and Monitoring Responsible Frequency (US $) and (US $) Directorate/s Indicator/s Organization/s Activities (1) (2) (3) (4) (5) (6) (7) (8) (9) 2.10Restoration . Sucos/Altea will . Foster . Contractor . Contractor . Restore and . PM of the . Once, but . Contractor’s of roads, be encouraged friendship and determine improve the Contractor and verify and cost/ bridge or to plant and good and pays environment DNSA/DAA compare payment to rural market their relationship by cost incurred al aesthetic . Environmental/ with the be infrastructure produce; and between values of the Pollution Control EMP for approved damage by . Sucos/Altea will the contractor project site. Officer (EO/PCO to construction by the project send their and the be installed in stage DNSA/DAA construction children to Sucos/Altea coordination with attached to activities and school because . Sucos/Altea DoE) Bid implementa- of easy access; will protect the documents tion of re- . Health workers contractor and greening and other social the project program service from any providers will be unfriendly encouraged to doings come and . Sucos/Altea undertake their will be duties and encourage to responsibilities assist the contractor. 2.11Implementa . Widen recharge . Community . Contractor . Contractor . Thickening of . PM of the . Once, but . Contractor’s tion of area of the participation in determine tree canopy Contractor and verify and cost to be watershed aquifer the restoration and pays or re-growth Project Proponent compare approved management . Improve and/or of denuded cost incurred of terrestrial . Environmental with the by plan Increase volume forest and ecology Officer (EO) EMP for DNSA/DAA of river watershed area; construction discharge . Pass a law, stage . Increase ordinances, attached to vegetation cover policies and Bid in the project guidelines in documents area. banning and/or regulating people from using watershed areas as agricultural production areas; and as residential area. 2.12Chance to . Loss of cultural . Notify the . Contractor . Contractor . As specified . PM of the . Upon . Contractor’s discover value of the Project determine in the Contractor and notification cost to be archeological project site. Manager and/or contract Project Proponent approved Project Potential Mitigation Cost of Responsible Cost for Development Impacts Measures Mitigation Organization/s Monitoring Plan Monitoring Stage Measures Ministries and Monitoring Responsible Frequency (US $) and (US $) Directorate/s Indicator/s Organization/s Activities (1) (2) (3) (4) (5) (6) (7) (8) (9) and cultural Project and pays document . Environmental of chance of by sites Engineer who in cost incurred and Officer (EO) discovery DNSA/DAA turn will notify specification. . DOE the Environmental Officer. EO will advise the procedure. 2.13 Blasting of . Safety of . Proper handling . Contractor . Contractor . As specified . PM of the . As needed, . Contractor’s the workers at stake of blasting determine . DOE in DOE’s Contractor and but closely cost to be construction procedures and pays guidelines & Project Proponent coordinate approved site or cost incurred policies in . Environmental with DOE in by borrow pit blasting Officer (EO) securing DNSA/DAA area/s (if . DOE permit necessary) III. Operation and Maintenance Stage 3.1Continue . Widen . Community . Contractor . Contractor . Thickening of . PM of the . Once, but . Contractor’s implementa- recharge participation in determine . DOE tree canopy or Contractor and verify and cost to be tion of area of the the restoration and pays . DNSA/DAA re-growth of Project Proponent compare approved watershed aquifer of denuded cost incurred terrestrial . Environmental with the by management . Improve forest and ecology Officer EMP for DNSA/DAA plan and/or watershed area; construction Increase stage volume of attached to river Bid discharge documents . Increase vegetation cover in the project area. 3.2 Reservoir, . Contaminate . Strictly follow . Contractor . Contractor . Maintain . PM of the . As required . Contractor’s Powerhouse and/or loss of WHO and determine . DNSA/DAA water quality Contractor and in the cost to be and other good water GoTL water and pays standard per Project Proponent operation approved facilities and quality quality cost WHO and . Environmental and by structures . Health standards incurred GoTL Officer maintenanc DNSA/DAA cleaning hazard and standards e plan of the and risk project maintenance facilities and structures Project Potential Mitigation Cost of Responsible Cost for Development Impacts Measures Mitigation Organization/s Monitoring Plan Monitoring Stage Measures Ministries and Monitoring Responsible Frequency (US $) and (US $) Directorate/s Indicator/s Organization/s Activities (1) (2) (3) (4) (5) (6) (7) (8) (9) 3.3 Flushing of . Increase . Adhere to . Contractor . Contractor . Maintain . PM of the . As required . Contractor’ sediments turbidity of allowed 25 – determine . DNSA/DAA water Contractor and in the s cost to be in reservoir river 100 mg/li of and pays . DOE quality Project Proponent operation approved and water system suspended cost standard per . Environmental and by tanks solids in river incurred WHO and Officer maintenanc DNSA/DAA system per GoTL e plan of the DOE’s water standards project quality facilities and standard structures 3.4Human . Possible loss . Installation of . Contractor’s . Contractor/ or . Warning . PM of the . As required . Contractor’s Safety on of life warning signs cost will be Concessionaire signs Contractor and in the cost to be Transmission within the followed installed; Project Proponent operation approved line perimeter of . Public hazard . Environmental and by transmission awareness Officer maintenanc DNSA/DAA line; meetings in . Village leaders e plan of . Conduct public villages the project hazard conducted; facilities awareness . Villages to and meeting in the strictly structures villages; implement the . Strict no house/s implementatio within 15 m of n of no houses transmission within 15 m of line transmission line 3.5Maintenance . Damage to . Trees within the . Contractor’s . Contractor/ or . Transmission . PM of the . As required . Contractor’s of power lines perimeter of cost will be Concessionaire lines are kept Contractor and in the cost to be transmission caused by transmission followed clear from Project operation approved line easement obstructing line must have any Proponent and by branches regular obstruction . Environmental maintenanc DNSA/DAA and twigs of trimming to Officer e plan of trees meet safety . Village leaders the project operating facilities procedures of and transmission structures line; . Use of herbicide is not allowed; . Employ villagers to do the regular Project Potential Mitigation Cost of Responsible Cost for Development Impacts Measures Mitigation Organization/s Monitoring Plan Monitoring Stage Measures Ministries and Monitoring Responsible Frequency (US $) and (US $) Directorate/s Indicator/s Organization/s Activities (1) (2) (3) (4) (5) (6) (7) (8) (9) trimming and/or clearing of grasses and other obstruction 3.6Handling . Potential . Waste . Contractor’s . Contractor . Site kept . PM of the . As required . Contractor’s and source of soil materials cost will be clean and Contractor and in the cost to be disposal of and water collected must followed free from DNSA/DAA operation approved by waste pollution; be properly hazardous . Environmental and DNSA/DAA materials . Loss of disposed in the waste; Officer maintenance from the environment designated . Worn out plan of the project site al aesthetics area; and old project . Oil and grease equipment facilities and must be kept in and parts structures a container and must be reuse if disposed at possible. junk shops and/or recycling depot