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Initial Environmental Examination Initial Environmental Examination Project No.: 50099-003 June 2018 REG: Fourth Greater Mekong Subregion Corridor Towns Development Thakhek Subproject Prepared by the Ministry of Public Works and Transport for the Asian Development Bank. CURRENCY EQUIVALENTS (as of 20 June 2018) Currency unit – Kip (LAK) LAK1.00 = $0.000119 $1.00 = LAK 8,412 ABBREVIATIONS ADB – Asian Development Bank AP – affected person CEMP – contractor environmental management plan CSO – combined sewer overflow DHUP – Department of Housing and Urban Planning DONRE – Department of Natural Resources and Environment DPWT – Department of Public Works and Transport EIA – environmental impact assessment EHS – environmental, health, and safety guidelines EMP – environmental management plan EMR – environmental monitoring report EO – environment officer (of implementing agency) ESO – environmental safeguard officer (of executing agency) ES – environmental specialist GHG – greenhouse gas GMS – Greater Mekong Subregion GMS-CTDP-4 – Fourth Greater Mekong Subregion Corridor Towns Development Project GRM – grievance redress mechanism HDPE – high-density polyethylene IEC – information, education and communication IEE – initial environmental examination MONRE – Ministry of Natural Resources and Environment MPWT – Ministry of Public Works and Transport PIU – project implementation unit PIC – project implementation consultant PCU – project management unit PPE – personal protective equipment PPTA – project preparatory technical assistance PTRI – Public Works Transport Research Institute SES – socio-economic survey SPS – Safeguard Policy Statement SWTP – small-scale wastewater treatment plant UDAA – Urban Development Administrative Authority USD – United States dollar UXO – unexploded ordinance WWTP – wastewater treatment plant UNITS OF MEASURE ha – hectare km – kilometer m – meter m3 – cubic meter tpy – tonne per year NOTES (i) The fiscal year (FY) 2018 of the Government of the Lao People’s Democratic Republic and its agencies ends on 31 December 2018. (ii) In this report, "$" refers to United States dollars. This initial environmental examination is a document of the borrower. The views expressed herein do not necessarily represent those of ADB’s Board of Directors, Management, or staff, and may be preliminary in nature. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. TABLE OF CONTENTS EXECUTIVE SUMMARY I. INTRODUCTION 1 A. Background 1 B. Purpose of the Report 1 II. POLICY, LEGAL, AND ADMINISTRATIVE FRAMEWORK 1 A. Lao PDR Safeguard Systems 1 B. ADB Safeguard Policy Statement (SPS) 5 III. DESCRIPTION OF THE PROJECT 5 A. Rationale 5 B. Description of Thakhek Subproject 7 C. Implementation Period 20 IV. DESCRIPTION OF THE ENVIRONMENT 22 A. Geographic Location 22 B. Description of Subproject Areas of Influence 22 C. Climate 32 D. Air Quality 34 E. Noise 34 F. Surface Water 34 G. Water quality 37 H. Groundwater 37 I. Biological Environment 37 J. Physical Cultural Environment 38 K. Socioeconomic Environment 38 V. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES 41 A. Environmental Benefits, Positive Impacts and Results 41 B. Anticipated Impacts/Issues/Concerns of Each Subproject Component 42 1. Stormwater Drainage Improvement 42 2. Small-scale Wastewater Treatment Plants 43 3. Controlled Landfill 46 4. Riverbank Protection 49 5. Heritage Conservation 49 C. Anticipated Impacts/Issues/Concerns – Pre-Construction Phase 49 D. Anticipated Impacts/Issues/Concerns – Construction Phase 51 E. Anticipated Impacts/Issues/Concerns – Operation Phase 55 VI. ANALYSIS OF ALTERNATIVES 56 A. Stormwater Drainage 56 B. Wastewater Treatment 56 C. Solid Waste Disposal 59 D. Riverbank Protection 61 VII. INFORMATION DISCLOSURE, CONSULTATION AND PARTICIPATION 61 VIII. GRIEVANCE REDRESS MECHANISM 64 A. Purpose of the Mechanism 64 B. Proposed Set-Up 64 C. Access to the Mechanism 64 D. GRM Steps and Timeframe 64 1. Informal Approach 65 2. Formal Approach 65 IX. ENVIRONMENTAL MANAGEMENT PLAN 67 X. CONCLUSION AND RECOMMENDATION 69 REFERENCES 70 APPENDICES A. Environmental Management Plan – Thakhek subproject B. Relevance of other environmental laws, regulations and guidelines to the project C. Environmental quality standards applicable in the IEE D. Results of groundwater quality study – Pakxan and Thakhek dumpsites E. Calculating dimension of the SWTP for Thakhek subproject F. Estimating GHG Emissions of Thakhek Controlled Landfill G. Terms of Reference for the Conduct of Environmental Compliance Audit of Existing Dumpsite H. Documentation of Stakeholder Consultations I. Terms of Reference of International and National Environmental Specialists of the Project Implementation Consultant List of Tables Table 1: Screening of Proposed Activities Using Ministerial Agreement No. 8056/MONRE 3 Table 2: Key Standards to Apply in the IEE 4 Table 3: Proposed Trunk Drainage Channels 7 Table 4: Proposed SWTP Locations 7 Table 5: SWTP Module Sizes for Thakhek 8 Table 6: Summary of Material Balance of SWTP for Thakhek 14 Table 7: Identified Environmentally Sensitive Receptors in the Main Areas of Influencea 23 Table 8: Parameters That Exceeded Standard Limits – Groundwater Study – Thakheka 37 Table 9: Water-borne, Water Related and Most Common Diseases in Khammouane Province 2015–2016 39 Table 10: Benefits, Positive Impacts and Outcomes 41 Table 11: Multi-Criteria Analysis of Wastewater Treatment Options 58 Table 12: Multi-Criteria Analysis of Solid Waste Disposal Options 60 Table 13: Issues raised during the public consultation on the IEE and RP 62 Table 14: Responsibilities of Key Institutions in Environmental Management 67 List of Figures Figure 1: Location Map 3 Figure 2: Location of Drains for Extension 9 Figure 3: Proposed Sewer Service Area and SWTP Location in Old Town area 10 Figure 4: Proposed Sewer Service Area and SWTP Location at Khammouane Provincial Hospital 11 Figure 5: Proposed Sewer Service Area and SWTP Location at Local Bus Station and Market 12 Figure 6: Proposed Sewer Service Area and SWTP Location Near Provincial Bus Station 13 Figure 7: SWTP Treatment Process 14 Figure 8: Location of the Existing Dumpsite and the Controlled Landfill 16 Figure 9: Layout of Proposed Thakhek Contolled Landfill 17 Figure 10: Location of proposed riverbank protection 18 Figure 11: Proposal for riverbank protection around Old Town Square 19 Figure 12: Implementation Schedule 21 Figure 13: Photos of Proposed Locations of Drains, River Gate, and Pump Stations 25 Figure 14: Location of SWTP (old town area) near Houay Sakham 27 Figure 15: Location of SWTP at Khammoune Provincial Hospital compound 28 Figure 16: Location of SWTP (local bus station and market) 28 Figure 17: Location of SWTP near the provincial bus station 29 Figure 18: Photos of existing dumpsite and proposed controlled landfill site 30 Figure 19: Location of riverbank improvement 31 Figure 20: Current condition of Old Post Office Building 32 Figure 21: Average Monthly Temperature and Rainfall (1901-2015) – Thakhek 33 Figure 22: Location of Houay Nam Sot 35 Figure 23: Location of Houay Nam Li 35 Figure 24: Location of pump station at Houay Simang 36 Figure 25: Location of Houay Sakham 36 EXECUTIVE SUMMARY A. Introduction 1. The Fourth Greater Mekong Subregion Corridor Towns Development Project (GMS- CTDP-4, or Project) will support the governments of Cambodia and the Lao People’s Democratic Republic (Lao PDR) in enhancing the competitiveness of towns located along the Central Mekong Economic Corridor in the GMS. The Project will support at least three of the seven strategies of the ten-year Socio-economic Development Strategy (2016–2025),1 and also contribute to one of the five key government directions of the 8th Five-Year National Socio-Economic Development Plan (2016–2010).2 2. In Lao PDR, the Project will cover the districts of Pakxan and Thakhek in the provinces of Borikhamxay and Khammouane, respectively (Figure 1). Both districts lie along National Road 13 (NR 13) and are located on the banks of the Mekong River. The districts have significant economic potential given the strategic road network that provide access to Thailand and Vietnam. However, the districts suffer from perennial flooding due to lack of adequate drainage system. There are also problems on solid waste management, environmental sanitation, and wastewater disposal that need to be addressed to sustain socio-economic competitiveness. 3. This report is the draft initial environmental examination (IEE) and environmental management report (EMP) for the proposed CTDP-4 – Thakhek Subproject. The IEE and EMP were prepared following the Safeguard Policy Statement (June 2009) of the Asian Development Bank (ADB) and Environmental Protection Law 2012 (No. 29/NA) of Lao PDR and its implementing guidelines. B. Description of the Subproject 4. The proposed infrastructure components in Thakhek are as follows: Component Description 1. Storm water drainage • Extension of five sections of open channels with total length of improvement 9.85 km to serve a total drainage area of 650.6 ha • Rivergate for Houay3 Simang • Four pumping stations 2. Small-scale wastewater • Four medium-sized SWTP systems of 200m3/d capacity located treatment plants (SWTPs) for at: treatment of black water only A. Close to Old town area; sewer length 2267m with 150mm diameter
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