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Environmental Assessment Report Summary Environmental Impact Assessment Project Number: 40037 August 2007 Papua New Guinea: Lae Port Development Project Prepared by [Author(s)] [Firm] [City, Country] Prepared by PNG Ports Corporation Limited for the Asian Development Bank (ADB). Prepared for [Executing Agency] [Implementing Agency] The summary environmental impact assessment 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. CURRENCY EQUIVALENTS (as of 31 July 2007) Currency Unit – kina (K) K1.00 = $0.3487 $1.00 = K2.8674 ABBREVIATIONS ADB – Asian Development Bank CO2 – carbon dioxide CSD – cutter suction dredger DEC – Department of Environment and Conservation EIA – environmental impact assessment EMP – environmental management plan HSE – health, safety, and environment MARPOL – International Convention for the Prevention of Pollution from Ships PMU – project management unit PNG – Papua New Guinea PPCL – PNG Ports Corporation Limited SEIA – summary environmental impact assessment WEIGHTS AND MEASURES °C – degree Celsius dB(A) – Decibel (A-weighted) ha – hectare kg – kilogram km – kilometer m – meter m3 – cubic meter m/s – meter per second % – percentage ‰ – per mille NOTE In this report, "$" refers to US dollars. CONTENTS Page MAPS I. INTRODUCTION 1 II. DESCRIPTION OF THE PROJECT 1 III. DESCRIPTION OF THE ENVIRONMENT 3 A. Physical Environment 3 B. Ecosystem and Biological Environment 5 C. Socioeconomic Aspects 8 IV. ALTERNATIVES 9 A. Without the Project 9 B. Alternative to Project Location 9 C. With the Project 9 V. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES 11 A. Preconstruction Phase 11 B. Construction Phase 11 C. Operations Phase 18 VI. ECONOMIC ASSESSMENT 20 A. Economic Justification of the Project 20 B. Environmental Costs and Mitigation Requirements 21 C. Nonmonetary Values 22 VII. ENVIRONMENTAL MANAGEMENT PLAN 22 A. Mitigation by Project Design 22 B. Mitigation during Project Implementation 22 C. Monitoring 24 D. Implementation of Mitigation Measures and Monitoring 24 E. Responsibilities for Reporting and Reviews 25 F. Institutional Arrangements for Environmental Management 26 G. Environmental Responsible Procurement Plan 27 H. Mechanisms for Feedback and Adjustment 27 I. Preliminary Cost Estimate 28 J. Institutional Arrangement for Resettlement Program 29 VIII. PUBLIC CONSULTATION AND DISCLOSURE 30 IX. CONCLUSIONS 31 APPENDIXES 1. Result of Two Soil Samplings and Analysis Undertaken during the Environmental 33 Impact Assessment 2. Summary Environmental Management Plan 34 3. Summary Environmental Monitoring Program 45 4. Terms of Reference of the Environmental Management Specialist 50 o 144 00'E 152o 00'E Lorengau MANUS Kavieng Vanimo Aitape B I S M A R C K S E A NEW IRELAND SANDAUN Wewak o o 4 00'S Sepik River Rabaul 4 00'S I N EAST SEPIK D WEST NEW BRITAIN MADANG O R am u N Ri Madang Buka ve Wabag WESTERN r E BOUGAINVILLE ENGA HIGHLANDS S Kimbe EAST NEW BRITAIN Mt. Hagen I Ok Tedi A Goroka Mendi Kundiawa MOROBE Arawa SOUTHERN SIMBU EASTERN Lae HIGHLANDS HIGHLANDS K ik or i R Project Area iv er GULF B S O L O M O N S E A am u R WESTERN iv er Kerema Fl y R iv er Gulf of Papua Popondetta Daru o PORT MORESBY 144 00'E NATIONAL CAPITAL DISTRICT ORO PAPUA NEW GUINEA 150 o 00'E 170 o 00'W MILNE BAY I n t N o r t h P a c i f i c O c e a n e o r o 20 00'N n 20 00'N o LAE PORT o a 10 00'S 10 00'S t Alotau i o n DEVELOPMENT PROJECT Philippine MARSHALL ISLANDS a l PACIFIC REGION Sea CENTRAL D a t e l i n REPUBLIC e FEDERATED STATES OF OF PALAU MICRONESIA 0o 0o National Capital NAURU PAPUA KIRIBATI Provincial Capital INDONESIA NEW GUINEA SOLOMON City/Town ISLANDS TUVALU C O R A L S E A National Road N SAMOA COOK River C o r a l S e a VANUATU ISLANDS REPUBLIC Provincial Boundary OF THE TONGA o o 0 50 100 150 200 0 20 00'S FIJI 20 00'S 7 International Boundary ISLANDS M - 2 6 Boundaries are not necessarily authoritative. a 0 A U S T R A L I A Kilometers 0 p R S o u t h P a c i f i c O c e a n o o 152 00'E M o 150 00'E 170 00'W 1 PAPUA NEW GUINEA 0 7 - p n g LAE PORT DEVELOPMENT PROJECT M 2 6 0 LOCATION AND AREA a 0 b p R M 2 PAPUA NEW GUINEA LAYOUT OF TIDAL BASIN AREA 07-2600c RM Map 3 I. INTRODUCTION 1. The Government of Papua New Guinea (PNG) has asked the Asian Development Bank (ADB) to provide a loan to fund the Government’s project to expand Lae Port: the Lae Port Development Project. The proposed Project is included in ADB’s pipeline as a firm project for approval in 2007. PNG Ports Corporation Limited (PPCL) will be the Executing Agency. 2. The Project will include development of a tidal basin, multipurpose berth, and terminal works. According to the PNG Environment Act 2000, the Project is a level 3 activity and therefore requires the approval of the minister for environment and conservation on the basis of an environmental impact statement, which is referred to in this report as the environmental impact assessment (EIA) report. According to ADB’s Environmental Assessment Guidelines (2003), the Project is classified as category A and needs to have an EIA. 3. This summary environmental impact assessment (SEIA) summarizes the major findings of the EIA report. The EIA and environmental management plan were prepared by Haskoning Nederland BV (Haskoning), engaged under ADB technical assistance to prepare the project.T1 The EIA report was prepared in accordance with the relevant laws and Government regulations. The EIA and environmental management plan reports, in principle, cover all the requirements set out in ADB’s Environmental Assessment Guidelines. II. DESCRIPTION OF THE PROJECT 4. Lae Port is situated on the coast of Huon Gulf (Map 1), where depths may exceed 900 meters (m). The largest PNG port, it is centrally located in the country and on most Pacific shipping routes. The current five berths are aging and insufficient to handle increasing cargo volume and vessel size. The Lae Port Development Project comprises extending the existing berths by constructing a tidal basin and associated deepwater wharf and container terminal, located to the west of the present port site. The tidal basin will be excavated in the coastal marshland. 5. The Project includes construction of a tidal basin (700 m long and 400 m wide) with a dredged depth of 13 m below chart datum, a multipurpose berth (240 m long and 45–50 m wide), and terminal works including all buildings; storage area; roads; and drainage, water, electrical, and sewerage services. The tidal basin and berth are designed to accommodate vessels with an overall length of 200 m, beam of 32.2 m, and fully laden draft of 12 m. Flexibility is built in for extending the berth by another 150 m without incurring dredging cost. The location of the Project is shown in Map 2 and the layout of the tidal basin in Map 3. 6. Preconstruction Phase. Prior to the commencement of dredging activities, the future port area (120 hectares [ha] of secondary growth vegetation cleared in 1980) will be cleared of all vegetation. Tree stumps of approximately 0.5 m will be left to facilitate the grubbing and removal of tree roots by bulldozers, and will be collected in a temporary storage area (3 ha). 7. Construction Phase. About 6.5 million cubic meters (m3) of material will be removed to develop the future port area. The material to be dredged to create the future port basin can be classified as (i) unsuitable material (3.4 million m3) originating from a 5 m thick clayey, peaty upper layers, and (ii) suitable fill material (3.1 million m3) originating from the lower sand-gravel 1 ADB. 2006. Technical Assistance to Papua New Guinea for Preparing the Lae Port Development Project-Tidal Basin Phase I. Manila. 2 stratum. About 1.7 million m3 of suitable material is required for the necessary reclamation works, leaving approximately 1.4 million m3 to be stockpiled within the cleared area for future use. 8. For dredging, reclamation, and disposal, a cutter suction dredger (CSD) will be used, with the following support facilities: workboat, floating pipeline, land pipeline, submerged pipeline, survey boat, bulldozer, loader, and spreader barge. For transport of the dredged material, a pipeline system will be installed. During dredging, shore connections with the floating pipeline will be made as required and placing of fill will start from the northern part of the reclamation area to the south. Part of this pipeline will also be used for disposal of unsuitable material, in which case a submerged pipeline will extend from the south western end of the pipeline to the spreader barge. 9. The suitable material provided by the lower soil layers of the area to be dredged will be used for constructing the port basin and other structures proposed by the Project. Quantities of rock material required would be limited, therefore quarry stone is not being considered as a construction material for the Project. For slope protection and construction, both gravel and aggregates for concrete and cement are available at Lae. For reclamation of the future port areas, the suitable dredge material will be used. The quantities of suitable material dredged will be in excess of the quantity required for port development.
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