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
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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. Surplus dredged material suitable for construction will be stored in reclamation areas.
10. The implementation schedule for all project activities, including start and completion dates of each activity and duration of each activity is presented in Table 1. Note that the timing of the project activities may be subject to change.
Table 1: Timing of Main Preconstruction and Construction Worksa
Project Component/Activity Start Completion Duration Bush clearance (120 ha) 13/03/2009 10/09/2009 26 weeks Dredging and reclamation 13/03/2009 29/04/2010 59 weeks 1. Unsuitable material 08/05/2009 25/02/2010 42 weeks 2. Suitable material 18/08/2009 29/04/2010 36.5 weeks 3. Reclamation 18/08/2009 29/04/2010 36.5 weeks Access road 29/09/2009 24/11/2009 8 weeks Paving (Areas A and B) 15/12/2009 09/03/2010 12 weeks Wharf construction 29/09/2009 10/07/2010 42 weeks 1. Pile driving (piling rig 1) 13/10/2009 25/05/2010 32 weeks 2. Concrete works 01/12/2009 29/06/2010 30 weeks 3. Slope protection (wharf) 20/04/2010 29/06/2010 10 weeks Slope protection 12/03/2010 29/07/2010 20 weeks ha = hectare a Start and completion dates of the activities are based on the current construction program, but are subject to change. Source: Draft EIA of the Project.
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III. DESCRIPTION OF THE ENVIRONMENT
A. Physical Environment
1. Geology, Seismology, and Geomorphology
11. The Markham River drainage system, Huon Peninsula, and inner portion of Huon Gulf lie within an active seismic zone, between the Australian and Pacific plates. Sandwiched in between these macroplates, the smaller Solomon and Bismarck subplates meet. The interaction between these plates affects regional uplift and subsidence patterns, and is the source of earthquake activity. The floor of Huon Gulf is located in the New Britain Basin and is bordered by deep sea trenches, which rise to the north and south. The deep-sea trench to the north is the New Britain Trench.
12. Three main units can be distinguished in the coastal sediment layers: (i) swamp deposits, consisting of very soft clayey peat, found inland up to 1 m thickness; (ii) recent soft deposits, consisting of soft grey silty clay and silt in layers of less than 1 m thickness; and (iii) granular units, covering the future coastal wharf and inland tidal basin area, comprising a lower granular layer, consisting of variably dense sandy gravel and dense gravely sand.
13. Huon Gulf receives large volumes of sediments from the Markham River and the nearby Butibum and Busu rivers. Sediments from the rivers, upon entering Huon Gulf, continue to move down steep underwater slopes. Catastrophic landslides in the Markham catchment contribute to the already high sediment load of the river. Material entering the sea is deposited in the offshore canyon or is carried along the western coastline by littoral drift, where it deposits on an extensive submarine delta. The rivers entering the north side of Huon Gulf have built up large fan deltas. The fan delta deposits overlie the Pleistocene Leron formation, comprising well- laminated mudstones, siltstones, pebbly sandstone, and sandy conglomerates.
14. The seabed at Lae Port generally comprises layers of 1–2 m of recently deposited, soft sandy silts, overlying gravely sandy layers that extend to deeper waters. The coastal waters around Lae are characterized by the steep slope of the sea bottom and the absence of a continental shelf. Immediately south of Lae Port, the seafloor slope reaches 200 m of depth over a distance of 750 m. From there the seabed slopes steeply down toward the New Britain Trench. A depth of 2,000 m is reached 30 kilometers (km) from Lae. The seaward extension of the Markham River consists of a deep submarine canyon. The river drains directly into the head of this canyon, intercepting most of the bed load, as well as a proportion of the flocculated sediment.
2. Climate
15. The wind climate in the project area shows two distinctive seasons: the southeast monsoon from mid-May to October, and northwest monsoon from mid-November to the end of March; in between are two periods characterized by light variable winds. During the southeast monsoon, Lae is open to all winds and wind–induced wave action. The trade winds, however, are very moderate at around 4 meters per second (m/s) at Lae. During the season dominated by the southeast trade winds, blowing in a northwestern direction, rainfall is high. Humidity exceeds 90% during the wet season. Annual air temperatures range from 24 degrees Celsius (°C) to 32°C. Average annual rainfall is 4,200 millimeters in the Lae area, but less over most of the Markham River catchment.
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3. Hydrology
16. The marine environment of Huon Gulf is strongly affected by the nearby presence of the Markham River. The catchment area of the 170 km river is about 13,000 square kilometers. Immediately upstream from the river mouth are numerous sandbanks and shallow channels. The river mouth morphology is constantly changing, probably as a result of the floods. At the river mouth, both the amount of bed load and flow velocity are high. Flow velocity at the river mouth is estimated at 1.5 m/s, sufficiently high to cause standing waves of 0.5 m. Because rainfall in the river catchment area is highly variable, the river shows a tendency to rapid and unpredictable rises over the floodplain tract.
17. The net silt load transported by the Markham River to Huon Gulf is about 2 million tons per year. This sediment load consists of coarse sediment transported as bed load, and fines and silt transported as suspended load. The bed load is transported along the steep slopes into the geological Markham River trench. The fines and silt remain in suspension in the freshwater spread out on top of the saline water. This fine material and silt is eventually deposited on the small shallow coastal plain along the shore and in the deep submarine canyon of the Markham River. Offshore from the river mouth, the plume of fine sediment in the upper layers can be traced over 10 km in the seaward direction. Coupled with estuarine circulation patterns, flocculation provides an important mechanism for entrapping chemicals in bottom sediment. Heavy flocculation and deposition of silt, associated with a strong halocline and thermocline, occur offshore from the Lae Port site.
4. Oceanography
18. The mean higher high water level at Lae is 1.60 m and mean lower low water level is 0.90 m. The wave climate at Lae comprises swell waves generated by distant weather systems, and sea waves generated by local winds. Regardless of the type of waves, the direction of the waves approaching the coastline is always from between the east and southeast. However, near-shore seabed features cause refraction of the incoming wave trains thereby reducing the angle at which the waves actually hit the shore. During the southeast trade wind season, Huon Gulf is characterized by very active waves induced by strong winds, blowing from the sea toward the mainland. Lae is relatively protected compared to conditions on the open sea, because of the southeast–northwest orientation of the Morobe coast. Also, the river water, floating on top of the dense seawater over a large distance from the river mouth, likely causes wave refraction and thus reduces wave heights near Lae. During the southeast trade wind season, strong winds drive a surface current—the New Guinea Coastal Current—westward. During the northwest monsoon season, the current reverses direction and is weaker.
19. The sediment movements along the coastline at Lae Port are caused by wave action, in particular of the predominating smaller swell waves, rather than by ocean and river currents. The Markham River supplies considerable quantities of sand and silt to the Huon Gulf coastline. Larger particles such as gravel and coarse sand are deposited in the deeper portions of Markham Bay. Smaller particles are carried with the current and most of these particles reach the coastal sand banks to the south of the Markham River entrance. Previous studies by Nedeco-Haskoning indicate that the thickness of the surface sediment plume, originating from the Markham River, is around 1–2 m. Suspended solids concentrations average 92 grams per cubic meter near the surface and 46 grams per cubic meter below 2.5 m.
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5. Soil Quality in the Tidal Basin Area
20. Disposal of dredged material has been regulated under the 1972 London Convention on Prevention of Marine Pollution by Dumping of Wastes and Other Matter, which will be entirely superseded by the 1996 Protocol to the Convention. As PNG has not developed an action list providing a screening level for contaminants, the Dutch Chemistry-Toxicity-Test (CTT), and the Australian National Ocean Disposal Guidelines for Dredged Material (NODGDM) Detailed Guidelines for Investigating and Assessing Dredged Material have been used. To obtain data on the quality of the marshland soil layers to be removed for the Project and to be disposed of, soil samples for analysis on contaminants were taken during the EIA. Soil samples were taken at five locations at a depth of 1 m, and in one location at 2 m. The samples were analyzed in the National Analysis Laboratory in Lae. The results of the soil sample analysis were compared to the Dutch CTT and indicate that the concentration of copper and nickel are above the screening levels. Considering this, a more detailed soil sampling was undertaken to reconfirm the findings and offshore disposal options.
21. Additional soil samples were taken from borings at 20 different sites in the future port area. Samples were taken at a depth of 1 m using a hand auger, and in four locations samples were taken (by Sinclair Knight Merz, Australia) at the depth of 0–1, 2–3, 3–4, and 4–5 m using a drilling rig. In addition, four bottom sediment samples (at the bottom of the ocean) were collected at the proposed dumping site, using a grab sampler. Soil samples were analysed in two accredited laboratories in Australia (ALS Environmental Pty Limited and HRL Technology Pty Limited). The result of soil quality testing was compared to the Australian standard (NODGDM). The result of the analysis showed that concentrations of copper and nickel from the area to be dredged are above Australian guideline screening levels, with the exception of copper in subsurface sediments, which is slightly below the screening level. Copper and nickel from the dredging site are below concentrations reported at the proposed spoil disposal site. Therefore, according to the Australian guidelines the sediment is considered to be nontoxic and acceptable for ocean disposal even though the relevant screening level(s) were exceeded. A summary of the soil analysis is in Appendix 1. Aside from that, the reported concentrations of organochlorine and organophosphorus pesticides and polychlorinated biphenyls (PCBs) from the soil samples in the dredging area are below detection limits, indicating no detectable contamination with these compounds at the dredge site or spoil ground.
B. Ecosystem and Biological Environment
1. Coastal Marshlands
22. On either side of the Markham River, coastal marshlands have evolved by natural processes of accretion of the river delta. On the right bank, mangrove forest is intersected by tidal channels known as the Labu Lakes or Labu estuary. Prior to earlier bush clearing for port development, vegetation east of the river comprised a poorly developed mangrove fringe of species not tolerating high salinity; the slightly raised beach prevented inland penetration of saline waters. Now the vegetation in the marshland area to be reclaimed consists of highly degraded secondary plant growth. Prior to the 1980s bush clearing, no vulnerable fauna species were found in the marshland; bird life was recorded to be limited, both in species and abundance.
2. Beach and Estuarine Environment
23. The major part of the Lae coastline, where beaches existed, has been modified by
6 dumping rock and rubbish to prevent coastal erosion. The beach that stretches from the port to the Markham River mouth is under permanent freshwater influence from the river and therefore does not offer a suitable habitat for marine invertebrates.
24. In the Markham River mouth, a clear halocline is at a depth of 1.0–1.5 m throughout the year. During the river floods (January), a secondary halocline develops at 4.5 m. Surface salinities range from 20 to 22 per mille (‰) and subsurface salinities from about 18‰ to about 37‰. Salinities in the Labu Lakes or Labu estuary increase from September–October onward to reach a maximum of around 25‰ near the bottom and about 15‰ near the surface in February–March. During August–September, salinities are minimal, approximately 15‰ near the bottom and less than 5‰ near the surface. Despite the limited extent of the Labu estuary, biodiversity is high.
25. The estuarine mudflats and sandbanks of the Markham River provide an important habitat for a wide variety of water fowl. The bird species, recorded from the Markham River mouth, comprise species that are commonly met in tropical estuarine environments. Shellfish, crustacea, and fish species recorded from the estuarine and nearshore waters of the project area are represented by species assemblages characteristic of such environments (penaeid shrimp, Macrobrachium species, mud lobster, croakers, snappers, etc.).
26. The leatherback turtle (dermochelys coriacea), an endangered species, is known to nest on the beaches of Labu and Busama, southwest of Lae. With the decline of the leatherback turtle throughout the Western Pacific region, the Huon coast is one of the last remaining nesting grounds of this species. Major threats to turtles nesting in PNG are depredation of nests by dogs, local consumption of eggs, and occasional slaughter of adult nesting females.
3. Marine Environment
27. The seabed off Lae is colonized by an impoverished invertebrate fauna. The virtual absence of bottom fauna suggests a very high deposition rate of sediment creating an environment that is unsuitable for colonization by benthic fauna (or flora). A predominantly muddy bottom habitat, comprising river clays and silts, stretches from the Markham River to Salamaua southward. Coral reefs are found along the coasts of Busama and Salamaua, approximately 30 km south of Lae. Sedimentation rates at the Busama site, located closer to the Markham River mouth, generally are about 10 times higher than those at the Salamaua site. Table 2 summarizes data for water temperature, salinity, transparency, and live coral cover.
Table 2: Main Marine Environment Parameters in Busama and Salamaua
Parameter Busama Salamaua Temperature 28°C–33°C 27°C–31°C Mean Salinity Surface 30.4‰ 30.8‰ Depth of 9 meters 31.9‰ 33.0‰ Transparency (Secchi disc) (meters) 2–18 8–22 Depth of maximum live coral cover (meters) up to 5 m 0–20 m °C = degree Celsius, ‰ = per mille, m = meter. Source: University of Technology. 1983. Lae Port Project Environmental Study Phase 1: Baseline Study. Lae, PNG.
4. Fisheries and Fishery Resources
28. The people living along the coastline southwest of Lae Port depend to a large extent on
7 fishing in the estuarine waters of the Labu Lakes and the river, and in nearshore marine waters. The majority of these fishing activities are for subsistence, although some of the catch is sold at the local market. According to the report on Small-Scale Fisheries in Morobe Province: Landing, Market and Buyer Surveys in Lae (prepared under the ADB-funded project on Coastal Fisheries Management and Development Project),2 a total of 4,307 marine products were landed during the 1-year survey (July 2005 to June 2006). They included 3,830 fish, 183 crustaceans, and 24 mollusks and comprised 124 species of fish, 6 species of crustaceans, and 1 species of mollusk. The most common groups of fish landed were snappers (including deepwater and reef species), trevallies, scads and rainbow runners, whiptail breams, and silverbiddies. The crustaceans landed included lobsters, banana and tiger prawns, and freshwater prawns. All landed mollusks were freshwater clams.
29. The fishery resources of Labu village were studied in 1983.3 For the village communities living near the Markham estuary, the protected waters of the Labu estuary represent the most common site for fishing at night, whereas during daytime fishing is most frequent in the mouth of the Markham River. Mullet is the fish most frequently caught by local residents; followed by croaker. Small quantities of shrimp and prawn are caught throughout the year and primarily used as bait. Snails are gathered by women from between the mangrove roots in the estuary. The shells are burned to produce lime to be used for chewing betel nut. For communities at Lababia and Paiawa, beche-de-mer and trochus harvesting contribute to fishing activities, because they have suitable reefs and islands within their territorial waters. Women from these communities also collect shells (Lambis spp., Neritinapulligera, Neritodryas conea, Tridacna spp., etc.), beche-de-mer, and octopus. A review of catches at Lababia show reef fish contribute a large part of the catch, followed by red emperor, batfish, squid, and lobster.
30. Fishing gear used for subsistence fishing may vary from pole and hand lines used in deep waters, to gill nets placed along the beach. The most common forms of fishing are hand- lining, followed by vertical long-lining, trolling, spear fishing, and netting. Occasionally, trap fishing, derris root (Derris trifoliata), and dynamite fishing are used.
5. Reptile
31. The Australian Saltwater crocodile (Crocodylus porosus) has been recorded in the rivers of the Huon coast. Breeding territories are established in freshwater areas. Females lay 40 to 60 eggs in mound nests, made from plant matter and mud. These mounds serve to raise the eggs above ground level to prevent losses due to flooding. Nevertheless, many nests are flooded every year. The future of the species seems to be secure at the moment, given the large population bases in Australia and PNG.
32. The leatherback turtle (Dermochelys coriacea) is known to nest on more than 120 km of beaches along the Huon coast. Nesting activity occurs during the dry season of October to March, with peak nesting occurring between December and January when the sea is relatively calm and soft sand covers most beaches. No nesting activity occurs during the wet season. Further down the coast, the green turtle (Chelonia mydas) and the hawksbill turtle (Eretmochelys imbricata) also occur. The leatherback turtle is an endangered species
2 Small-scale fisheries in Morobe Province: Landing, Market and Buyer Surveys in Lae. National Fisheries Authorities, November 2006. Coastal Fisheries Management & Development Project. Report prepared by Ursula Kaly and Garry Preston. Funded by National Fisheries Authority and the Asian Development Bank through the Coastal Fisheries Management and Development Project, 2006. 3 University of Technology. 1983. Lae Port Project Environmental Study Phase 1: Baseline Study. Lae, PNG.
8 mentioned on the Red List of International Union for the Conservation of Nature and Natural Resources (IUCN, now referred as World Conservation Union).
33. The leatherback turtle has received international attention and some conservation efforts are undertaken along the Huon coast in Morobe Province, which has the largest nesting population in PNG. These efforts have been supported by several conservation organizations involving village communities to monitor and safeguard the nesting turtle. The Western Pacific Regional Fishery Management Council currently funds several leatherback turtle recovery projects in the Western Pacific. Activities under the PNG project include research, monitoring, and conservation initiatives. The project covers four sites along the coast, from south to north at Paiawa, Kamiali (Lababia village), Buli (Busama village), and Labu Tale. The beach at Lababia (located more than 60 km from the Markham River mouth) is the main leatherback turtle-nesting beach, accounting for approximately 70% of all nesting events along the Huon coast. Communities are employed as field coordinators, team leaders, and beach monitors, as opposed to harvesting eggs or turtles. The project has been undertaken in cooperation with the Kamiali community in association with the Kamiali Integrated Development Conservation Group, Department of Environment and Conservation (DEC) of the PNG Government, and Village Development Trust. The National Oceanic and Atmospheric Administration has also contributed in recent years by providing technical expertise and funding satellite tracking and aerial surveys.
C. Socioeconomic Aspects
34. The land for development of the tidal basin for Lae Port is described as vacant government land, located at Portion 508 Milinch of Lae Fourmil of Markham. However, the land is occupied by settlers. Three illegal settlements (Maus Markham, Sodas, and Wara Tais) have developed over time, established by squatters and migrants originating from across the country. The settlements started to develop in the early 1970s and consolidated in the 1980s.
35. The Project requires 120 ha, which will require the physical resettlement of the three villages—2,912 people from 482 households. The directly affected people living in the three villages have culturally and socially different backgrounds and positions in society. Only about 10% of the settlers originate from Morobe Province and many are employed in low-wage jobs, often working as a driver, cleaner, security guard, machine operator, or bar attendant. Given the nature of the land where the settlers are currently living, freshwater is very scarce and, when available, mostly unsuitable for human consumption. Due to proximity of the sea, groundwater is brackish to saline. Therefore, residents rely heavily on rainwater for drinking water. The Labu people to be indirectly affected by the Project are the traditional inhabitants of the area surrounding the Markham River.
36. Project-affected people comprise three categories: (i) Directly affected people will be resettled as a direct impact resulting from project construction, i.e., the illegal settlers, known as the “squatters” inhabiting the three settlements (Maus Markham, Sodas, and Wara Tais). They occupy part of the land to be reclaimed for the future port development (Table 3) and will be relocated and provided with assistance to move and to improve or at least restore their livelihoods; (ii) Indirectly affected people are those using a canoe- and motorboat-landing site located at the western side of the present port. They are mainly from the three villages (Labu Butu, Labu Miti, and Labu Tali). A new landing area including a market will be established to ensure access to town and assistance will be provided to enhance or at least restore their livelihoods. (iii) The host communities at the resettlement site at Malahang. The land is owned by the Ahi association, is currently used as farmland by the Ahi, and inhabited by settlers from various regions in PNG. The owners of the farms in this area will be compensated at replacement cost.
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Table 3: Losses Incurred by People directly Affected by Land Acquisition
Loss of Maus Markham Wara Tais Sodas Labu Villages Hosts Land ± 120 ha (no legal or legalizable titles) None +40 ha House 221 97 164 None None Kitchen 84 28 4 None None Shed 23 1 12 None None Toilet 216 55 125 None None Shop 5 2 7 None None Canteen/coffee shop 8 4 17 None None Economic trees √ √ √ None √ Garden/farm √ √ √ None √ Access to fishing grounds √ √ √ √ None Communal property 3 churches None 2 churches None None Cultural/ritual site None None None None None Informal market √ √ √ √ None Canoe-landing area √ √ √ √ None Formal job None None None None None Self employment None None None None None Job in the informal sector Some Some Some None None ha = hectare, √ = not available. Source: Final draft resettlement plan of the Project.
IV. ALTERNATIVES
A. Without the Project
37. Congestion of Lae Port will continue and likely increase, thus aggravating the environmental impacts from cargo handling and ship-generated waste. Exhaust from ships waiting offshore for access to the port will have an increasing impact on air quality. Without implementation of the Project, the people living in the coastal marshlands are likely to continue to live in their three villages, where housing conditions are very poor and the living environment is unhealthy.
B. Alternative to Project Location
38. The possibilities of extending the port at its present location are limited. Therefore, in the early 1970s the PNG Harbours Board decided that Lae Port should expand into the marshland located west of the existing port. The port expansion plan was recommended by Nedeco in 1970. No other locations were considered by the design team for proposed Lae Port development.
C. With the Project
39. Project development entails dredging an area for a tidal basin. Part of the material (3.4 million m3) dredged from the new port area will not be suitable for construction and will therefore require disposal. Disposal of the unsuitable dredged material constitutes the project component with highest potential risk to adversely affect the physical environment and its marine life. For this reason, three sites considered for dumping of dredge spoil may be considered as project alternatives in a broader sense and will be treated as such for the purpose of the present EIA.
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1. Disposal in the Lower Course of the Markham River
40. About 3.4 million m3 of dredged fine material would be pumped into the lower course of the Markham River, utilizing the river plume for dispersal of this material into the sea. Presently, the sediment plume offshore from the river mouth can be traced over a distance of 10–13 km seaward; most of this suspended material is directed southward. Therefore, during periods of higher river discharge, the sediment load carried by the river is likely to increase substantially as a result of dredged material disposal. It may affect the coral reefs of Busama and Salamaua, located to the south. Also, a substantial part of the silt load may enter the Labu Lake system. In the without-project situation, the coral reefs are affected by sediment originating from the river. Natural sedimentation rates at the Busama site are generally 10 times higher than at the Salamaua site. However, during low river flow the dredge spoil fines may partly settle at the river mouth, mainly because the river water is saturated with suspended solids and possibly because of flocculation in the lower estuarine stretches, where freshwaters mix with saline waters.
2. On-Land Disposal
41. Dumping of the fine material on land would be next to the river on its eastern bank, near the river mouth, because this will be the only site available for on-land disposal of material unsuitable for construction purposes. Disposal of dredged material near or on the riverbank may result in slumping of the bank. Moreover, disposal on the floodplain may impair its drainage capacity. Odor may also be an environmental issue in case of on-land dumping if the excavated material contains a significant amount of organic matter (peaty soil), which has been under oxygen-depleted water conditions for a significant time and will start to decompose when exposed to air. Release of hydrogen sulfide gas may produce unacceptable odor.
3. Offshore Disposal
42. All dredged materials have a significant physical impact at the point of disposal. This includes local covering of the seabed and local increase in suspended solids. Physical impacts may result from subsequent transport, particularly of the finer fractions, by wave and tidal action and residual current movements. Biological consequences of these physical impacts include smothering of benthic organisms in the dumping area. The significance of the physical and biological impacts largely depends on the physical conditions and natural values locally met.
a. Disposal in Shallow Eaters
43. Discharge of dredge spoil into the sediment plume outside the river mouth area would avoid the ecological and hydraulic impacts identified as likely to occur when the dredge spoil would be pumped into the lower course of the river. However, the possibility that suspended sediments will enter the Labu estuary and reach the coral reefs will still remain. Moreover, prolonged disposal at the same place in shallow waters can result in altered seabed configuration with consequent changes in current patterns. The changes brought about near the shore by this disposal option could lead to increased shoaling and altered shoreline configuration.
b. Disposal in Deep Offshore Waters
44. The seabed at Huon Gulf, including the ocean floor near Lae Port, is characterized by a steep slope of the ocean floor. From the beach, the sea bottom shelves form a slope that
11 gradually becomes steeper. South of Lae Port, the seafloor slope reaches 200 m of depth over a distance of 750 m. From there, the seabed slopes steeply downward toward the New Britain Trench. A depth of 2,000 m is already reached at 30 km from Lae.
45. The seabed off the Markham River extends to a deep submarine canyon. The river drains directly into the head of this canyon. Where the river discharges into Huon Gulf, a distinct seafloor channel plunges down the submarine delta front, which is the head of the Markham Canyon. The seafloor gradient between 15 m and 100 m water depths within the channel is 13 degrees. The channel morphology suggests that the Markham River has sufficient current velocity as the water moves down the slope into deeper water.
46. Disposal of the dredged material will be carried out in this area, where the sediment will move into deep waters, and prevent a significant increase in the sediment load in the plume coming from the Markham River and reaching further south in the bay. Considering the available alternatives and their possible environmental impacts, offshore disposal of the dredged material is considered to be the most favorable option.
V. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES
A. Preconstruction Phase
47. Bush Clearing. To prepare the land prior to the excavation of the new port basin, bush clearing will involve removing all vegetation from the future port site. The impact will be irreversible. However, in view of the advanced degree of degradation of the existing vegetation and the absence of any fauna or flora species with significant conservation value, the impact is considered insignificant.
48. In view of the amount of vegetation to be removed and burned, the smoke is expected to be significant. The mitigation measures include (i) allow vegetation to dry before burning, (ii) progressively burn vegetation in small heaps to avoid massive conflagration and smoke development, (iii) respect local regulations regarding burning and control of fires, and (iv) make cleared waste wood available to local people for use as fuelwood. With the scrubland having an assumed 20% of the carbon dioxide (CO2) consumption capacity of mature tropical forest vegetation, the CO2 loss as a result of clearing is considered minor when compared to the abundant tropical vegetation of PNG. Roots and tree stumps will be removed by the contractor and treated in a temporary storage area located north of the new basin. They will be dried and burned, or made available to the local people for use as firewood. The latter option is preferred, from environmental and social perspectives.
49. The use of heavy machinery and equipment for removing and transporting the vegetation during port site preparation will increase noise. Equipment used will include chain saws for cutting branches and felling trees. Considering the distance of the bush clearance activity from the nearest sensitive receptor (Labu villages), which is more than 2 km, the impact is considered to be negligible and therefore can be classified as insignificant.
B. Construction Phase
50. Waste Generation. The construction activities for the new port facilities will result in the production of solid and liquid waste from construction materials; household waste (generated by the construction workers); and potentially hazardous chemical waste from machinery use and maintenance, such as fuels and oils, and the drums that contained such substances. A
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(localized) impact on groundwater and soil quality at the project site could occur if these wastes are not properly managed. Mitigation measures will include, before the start of the work, the contractor preparing a waste management plan as part of the EMP; establishing a recording system for the amount of waste generated and disposed of; providing training to workers on the need for site cleanliness and on appropriate waste management procedures; and applying common waste principles of reduce waste, reuse waste, recycle waste, treat waste, and if not viable, eventually dispose of waste to landfill. Considering also the temporary nature of the construction activities and the available waste disposal and incineration facilities at Lae Port, this impact is considered minor.
51. Construction Runoff. The construction activities for the new port facilities, including the wharf and container terminal building sites and the road construction site, as well as the formation activities for the reclamation areas have the potential to impact seawater quality in the vicinity of the reclamation areas because site runoff. Mitigation measures include preventing excessive generation of runoff (such as settling pond) to minimize the potential of such effluents to reach the marine environment, and applying regular monitoring and an immediate feedback mechanism. This potential impact is classified as minor, considering the limited time of construction.
52. Air Quality. The construction activities will involve the use of vehicles and construction machinery, which may temporarily affect the air quality locally in and around the port development site. The impact of air emissions generated and impacting on nearby sensitive receptors (nearest Labu settlement more than 2 km away) can be classified as negligible and therefore having no impact, considering the temporary character of the construction activities, the distance to the nearest settlement, and the generally weak winds at Lae. Locally on-site however, air quality might be temporarily deteriorated at locations of intense vehicle and machinery movement. Mitigation measures include maintaining the vehicles and construction machinery and vessels in good condition, and covering vehicles carrying dusty materials, and putting in place routine best-practice measures to reduce fugitive emissions.
53. Noise Emissions and Vibration. The construction activities will generate noise by the use of heavy machinery and equipment. Noise and its impact during construction activities are dependent on the type of equipment used, working hours, and proximity to sensitive receivers. Key sources of construction noise at the project site include dredging and reclamation, piling for quay walls, and constructing buildings. The distance of the construction activities to the nearest sensitive receptor (nearby Labu settlement) is more than 2 km. In addition, the buildings situated within the existing port will provide a shielding impact from noise transmission. The impact of noise on nearby inhabitants is therefore considered to be negligible and can be classified as having no significant impact. No specific mitigation is required except for working to meet internationally accepted standards with respect to noise emissions. Best practice measures are recommended to retain noise emissions to a practicable minimum. Silent (hydraulic) pile-driving techniques will be applied. No pile driving should take place from 1900 hours to 0700 hours, in agreement with international standards. The impact from vibrations from construction activities is considered insignificant, particularly because no vibration-sensitive marine mammals live in the project area.
54. Leakage or Spillage. Dredgers and other marine equipment carry fuel and oil, which may be accidentally spilled. High-pressure hydraulic systems are also prone to possible failure leading to spillage. Construction activities on the reclamation areas will require plant and fuel storage areas that constitute a spillage risk. This is considered a minor negative impact.
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55. Nonetheless, mitigation measures include the contractor preparing guidelines and procedures for immediate clean-up actions following any spillage of oil, fuel, or chemicals; observing good operating practices and proper maintenance of plant and equipment (bulldozers, trucks, vessels); keeping the number of chemical, fuel, and oil containers to a minimum and returning them to storage areas when not in use; establishing locations for storing waste materials, fuels, oils, chemicals, and equipment that are as far from the water as possible and not prone to flooding; providing all fuel tanks and chemical storage areas with locks and siting them in sealed areas; and storing drums and liquid containers on an impermeable base within a bund.
56. Wastewater. Sewage and wastewater originate from (i) toilets, kitchens, and similar facilities; (ii) canteen kitchens, including that from basins, sinks, and floor drains; and (iii) vessels used for dredging, reclamation, and disposal of dredge spoil. Mitigation measures include discharging wastewater from toilets and kitchens into a foul sewer sewage, never discharging sewage or wastewater from the vessels/equipment used for dredging into the sea, and making adequate provisions for disposal by pumping sewage to a road tanker for disposal to the city sewage network. With suitable arrangements to be put in place, no significant water quality impacts are expected to arise from on-site generated sewage.
57. Impacts on Local Economy. Labor opportunities for local people in the construction works for the new port facilities will provide a temporary and therefore minor positive impact on the economy of the local communities. Nonetheless, to not create inaccurate expectations, the local people must be made properly and fully aware that the labor opportunity is temporary.
58. Wharf and Road Construction. The subactivity of pile driving (steel piles) will be part of the construction activities for creating the new wharf and has the greatest potential for creating noise impacts. However, relatively silent pile-driving techniques are available largely as a result of the introduction of environmental noise laws to minimize disturbance to residential neighborhoods. Such pile-driving equipment will be used during port construction. The nearest sensitive receptors to this noise emission are the Labu settlements at more than 2 km from the site. Aside from the intermittent pattern of the piling noise, which does not make it intrusive, the distance to the settlement will also result in significantly lower noise at receptor locations. In agreement with international standards, no pile driving will take place from 1900 hours to 0700 hours. The impact of noise emissions from pile driving is therefore considered to be minor.
59. Dredging and Reclamation. The dredging activity will involve dredging about 6.5 million m3 of material to be removed for developing the future port area. Part of the material to be dredged can be classified as unsuitable material, originating from the clayey, peaty upper layers; and partly suitable fill material, originating from the lower sand-gravel stratum. The main equipment used for dredging, reclamation, and disposal of unsuitable dredge fines will comprise a cutter suction dredger (CSD), a pipeline, and a spreader barge. The dredging activities are expected to last for 59 weeks and to be a continuous 24-hour activity.
60. The activity of reclamation might become a potential source of dust emissions. Considering the distance to the nearest sensitive receptors (Labu settlement over 2 km away) and weak winds at Lae, this impact can be classified as negligible and therefore as no impact. The dredging activity may become the source of noise emissions. The noise emitted by the dredging machinery and perceived by the nearest sensitive receptors depends on the gradual attenuation of the original noise level by aspects like distance from the source, atmospheric absorption, and facade reflection by buildings. Considering the location of Labu village is more
14 than 2 km from the construction site, the impact of noise emissions by the dredging activities is considered negligible.
61. A volume of about 6.5 million m3 of material will have to be removed for developing the future port area. The amount of unsuitable material (a 5 m thick layer) to be dredged and disposed of is estimated at 3.4 x 106 m3. Dredging will be done with CSD. The current plan is that unsuitable sediment will be disposed offshore at a distance of approximately 300 m from the Markham River mouth at a depth of 50–100 m. Deep water in Huon Gulf is very near the project site. The bottom is characterized by a downward slope of 1:10 to 1:40 to a depth of about 3 m below mean sea level. Below this depth, the slope is much steeper. The discharge pipeline of the CSD will be connected to a spreader barge, which is equipped with a discharge pipe capable of discharging the dredge spoil at a depth of 25 m.
62. The potential impacts of disposing of dredged materials at the location of disposal include introducing elevated levels of suspended solids in the waters surrounding the disposal site; reducing light penetration due to increased concentrations of suspended solids; covering the seabed with sediments; transporting subsequently, particularly of the finer fractions, by wave and tidal action and residual current movements; biological consequences of these physical impacts include smothering of benthic organisms in the disposal area.
63. Analysis on the physical properties of sediments from dredging site collected during the additional soil sampling (9 samples at the depth of 1 m) display a wide range of settling times. It varies from less than 2 minutes to 15 minutes (with an average of about 9 minutes) for 50% of the solids to settle 1 m, or from 2 minutes to 4 hours (with an average of 1.5 hours) for 90% of the solids to settle 1 m. Long settling times are generally associated with a high proportion of fine particles which is generally associated with the peaty clays. The depth of the designated disposal area (as drawn on Haskoning drawing No. 9S1248/LTB/1203) is 50 m to 100 m. At the shallowest disposal depth of 50 m, the slowest-settling material discharged at a depth of 25 m would require about 4 days, for 90% settlement to the bottom, whereas the fastest-settling material will take less than an hour. These estimates of settling times at the disposal area could be incorrect because it is assumed the absence of water turbulence and the sediment is released without pumping. Haskoning has made assessment on disposal of dredged material as presented below.
64. Several processes were considered in the assessment, most importantly the hydrodynamic processes. The tidal amplitude is about 0.5 m and the associated tidal current velocity is less than 0.05–0.1 m/s at a water depth of 50–100 m. Therefore, the tidal influence is limited at the disposal site. The current velocity magnitude is very small and periodically changing direction; therefore the tidal variation will induce almost no net transport of the disposal and only induce mixing with the surrounding water system.
65. The freshwater outflow from the Markham River into Huon Gulf influences the hydrodynamic behaviour of the surface layer to a large extent. However, because the mixing of fresh- and saltwater is confined in the upper layer, this will have almost no effect on the disposal at 25 m water depth. The wave and wind climate in the area is moderate with wind velocity typically at 5–10 m/s, and the influence depth of the wind waves is limited to the upper layer of the water column. Therefore, at 25 m depth the waves will not affect the behaviour of the disposal. The wind-driven currents will also be limited to the upper part of the water column; hence, its influence on disposal will be negligible. New Guinea Coastal Undercurrent (NGCU) exists in the northern coast of PNG outside the Huon Gulf with the core speed at 60 cm/s at
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200–300 m depth. It is not clear how it may affect the current in Huon Gulf. If it does, it may affect the deep part of the Huon Gulf, and the speed could have been reduced substantially in the dumping site. If the undercurrent in Huon Gulf exist, the consultants estimate that this current is about several tens of centimeters/second, therefore predict that influence from the undercurrent is insignificant. A summary of hydrodynamic processes is in Table 4.
Table 4: Hydrodynamic Processes at Disposal Site in Huon Gulf
Item Magnitude Remarks Water depth at river mouth 10 m Bathymetric data Thickness of freshwater layer at < 10 m disposal site Wave characteristics at disposal site Hs = 1–1.5 m Estimates for mild wave climate Tp = 4–6 s Influence depth of waves 8–13 m This influence depth is computed using linear wave theory and assuming an orbital velocity of less than 10 centimeters/second Wind speed 5–10 m/s Estimates for mild wind climate Influence depth of wind-generated 10–15 m This influence depth is derived from the currents Ekman depth Undercurrent 0.1–0.3 m/s This undercurrent is likely induced by (or part of) the New Guinea Undercurrent Hs = significant wave height, m = unit for Hs, s = unit for Tp, Tp = peak period . Source: Draft EIA of the Project.
66. The disposal process will be executed by means of a controlled outflow from a pipeline. This dredged material will mainly consist of marine sand and consolidated mud with some fractions of organic material. Based on previous experience with CSD operations, the concentration of the solids of dredged material is estimated at 25%–30% of the total volume disposed. The disposal capacity of the CSD equals 3,000 m3/hour (solids). When assuming a 25% concentration of solids, the discharge capacity of the CSD equals 12,000 m3/hour (mixture of unsuitable material and marine surface water). With a pipeline diameter of 30 inches the outflow velocity of the mixture is about 7 m/s. The jet enters a more or less stagnant saltwater body with a saltwater density of 1,030 kg/m3. The disposal characteristics are in Table 5.
67. The sediment plume from the disposal is predicted to be localized. Due to the density difference as well as velocity difference, a density current with sediment directed downward will transport the sediment toward the bottom. At the bottom, the sediment will likely spread out. Because of the undercurrent, some limited transport may occur horizontally around the discharge pipeline at the seafloor, and the disposed sediments will be mixed with the sediment from the Markham River. Due to the steep underwater slope, this sediment will finally be transported into the deeper parts of Huon Gulf along the existing underwater canyon.
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Table 5: Disposal Characteristics
Item Magnitude Remarks A. Unsuitable Material Total volume of unsuitable material 3.4 x 106 m3 Sediment density 2,650 kg/m3 Porosity of unsuitable material 0.4 This porosity is a reasonable value for consolidated mud and sandy material. Mass of unsuitable material in total 5.4 x 109 kg (= 0.6 x 3.4 x 106 m3 x 2,650 kg/m3) disposal B. Marine Surface Water Ratio solids/marine water 25%:75% Based on expert judgment Marine surface water needed for 10.2 x 106 m3 (= 75/25 x 3.4 x 106 m3) disposal Background concentration of the 1 kg/m3 This is a conservative value; background suspended matter in the surface concentration of suspended matter in the layer surface layer is estimated at 0.1–1 kg/m3. Mass of background solids in total 1.0 x 107 kg (= 10.2 x 106 m3 x 1 kg/m3) disposal Note that this amount is negligible compared with the mass of unsuitable material in the disposal. Surface water density 1,000 kg/m3 This is a conservative value; water density of the surface layer at the disposal site will likely be higher. C. Dredging Mixture Disposal capacity 3,000 m3/hour This disposal capacity refers to the solid fraction only. Pipeline diameter 30” Outflow velocity 7 m/s (≈ 3,000/0.25 x 1/3,600 x π x 0.382) Density dredging mixture 1,150 kg/m3 (≈ 0.25 x 0.6 x 2650 + 0.75 x 1,000) Water density at deep water 1,030 kg/m3 Relative excess density 0.12 (= (1,150–1,030)/1,030) kg = kilogram, m = meter, m3 = cubic meter. Source: Draft EIA of the Project.
68. Haskoning Consultants prepared a risk assessment within the scope of the EIA study. They conclude that the deepwater disposal of the dredged material will have insignificant impact on the vulnerable areas southwest of the project site for the following reasons: (i) the sediment plume will act as a density current toward the bottom, the sediment will spread out on the seafloor; (ii) the material will be disposed of in deep water where the influence of waves, wind, and tidal and density currents are not significant, and will not affect movement of the disposed sediment; and (iii) undercurrent may exist in deep part of Huon Gulf, it may have been reduced substantially in the dumping site. However, it may still be distributing the sediment in the system. Horizontal distribution of the sediments disposed of will be very limited and vertical mixing will be insignificant. In the unlikely case that disposed sediment re-suspend in the upper layers, the volume is predicted as insignificant and will not affect water quality significantly.
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When well managed and strictly monitored, the impacts of the disposal can be avoided or reduced to acceptable levels. The procedures for the disposal of dredged material will be clearly defined. These procedures are in principle good practice with well-known dredging companies.
69. Analysis of offshore spoil disposal has shown that re-suspension of fine material will be insignificant. Nonetheless, to ensure that a suitable dredge spoil discharge system will be put in place, clauses will be included in the tender as well as contract documents, stipulating that tenders must meet the requirement of dredged material disposal to prevent significant distribution of suspended solids in the waters. The disposal methodology shall include the regular relocation of the dredge spoil discharge system evenly over the area of the designated dumping ground and particularly when the build-up of dredge spoil under water becomes higher than 5 m above original bed level.
70. Despite the convincing assessment presented above, precaution will still need to be taken to ensure that significant impact will not happen. Therefore, precautionary approach will be taken for recognition of the possibility that fine material will be transported at considerable distances from the disposal site, including to sensitive coral reef and seagrass receptors, and possible impacts on fisheries. A water quality monitoring especially the concentration of total suspended solids along four transects (see Appendix 3) will be undertaken. The transects stretch between the tidal basin and disposal point, between disposal point and Labu estuary, and along the coastal area between Labu village and Salamaua. The result of water quality monitoring should demonstrate that the location and depth of the point of release of the sediments is adequate to prevent high concentrations of suspended solids in vulnerable areas. The government regulation on Water Quality Criteria (2002) will be followed to ensure aquatic life protection. In case significant increases are found due to the disposal activities, the depth of the release of dredged material should be adapted immediately. Other measures should also be considered by the contractor as necessary.
71. Marine Environment. Since no macrobiota such as coral or sea grass and other benthic flora and fauna are in the immediate vicinity of the disposal area and turbidity is not high, no significant environmental impact on natural marine ecological processes is expected. Mitigation will include adopting best dredging practice, disposing of spoils by following an appropriate engineering design, and implementing a monitoring and feedback system to limit any possible disruption of ecological processes.
72. Fisheries. Increases in suspended sediments and turbidity levels from disposal operations may have adverse effects on marine animals and plants. However, some fish species naturally occuring in sedimentary environments can adapt to this condition, other fish species can readily move away from or avoid areas of high suspended solids, while soft-bottom demersal species and pelagic species are likely to be less vulnerable to sediment impacts. Therefore, it is expected that there will be insignificant impacts on fisheries from dumping of dredged material into the Huon Gulf. Monitoring of suspended sediment will be undertaken during dredging/dumping operation to ensure that there will be no significant impacts on fisheries.
73. Turtle Nesting. Offshore disposal of dredged material may have an effect on the leatherback turtle (Dermochelys coriacea) nesting grounds. Available data show that about 70% of the nesting turtle population is on Lababia beach, which is more than 60 km from the disposal site, are unlikely be affected. However, some turtles may nest on the coast of the Labu area, which is near the dumping site. Although no significant impact on turtle nesting sites is
18 expected, mitigation measures will be implemented including briefing the contractor on the conservation significance of the leatherback turtle and other turtle species in the area, including the Huon Coast Leatherback Turtle Recovery Project; increasing awareness of existing programs and activities applied by the turtle conservation project; and adopting relevant practices to lessen possible adverse impact on the nesting sites. Coordination should also be made with the Huon Coast Leatherback Turtle Recovery Project for monitoring.
74. Socioeconomic. Three groups of communities will be affected by the Project, i.e., directly affected people living within the proposed tidal basin project, the Labu communities that will lose their canoe-landing site, and host communities in the Malahang area. The loss of land, homesteads, houses, other infrastructure, and living environment present a considerable impact for the affected people in the Maus Markham, Sodas, and Wara Tais settlements. In spite of that, the people are also aware of their unhealthy living environment. Although some have been living there for several decades, they are willing and eager to grasp the opportunity to live under healthier conditions and have the security of tenancy by owning a plot of residential land and with the possibility of living in a decent house.
75. Considering that the existing canoe-landing site, which is the main access for three villages inhabited by the Labu ethnic group, will be acquired by the Project, a suitable alternative landing area including a market and ensuring proper access to town will be provided to these communities. The Labu villages will also receive training and support to establish floating fish cages in the Labu lagoons and be assisted in fish farming and other non-fishing-based income generating activities to offset any possible income loss related to extension of the port.
76. Some parts of the land of the host communities at the resettlement site at Malahang will be leased by the Government. The land is presently utilized as farmland by the Ahi community and inhabited by settlers from various regions in PNG. The owners of the farms in this area will be compensated at replacement costs.
77. A resettlement plan was prepared to address socioeconomic impacts of the Project on the affected communities. The plan was prepared in accordance with ADB’s Involuntary Resettlement Policy (1995), Operations Manual: Involuntary Resettlement (2006), and Handbook on Resettlement (1998). Based on a comprehensive socioeconomic survey, the resettlement plan defines entitlements, project interventions, and implementation arrangements. PPCL has endorsed the plan. Intensive and comprehensive consultations with all stakeholders (the three resettlement villages, the Labu villages, and the Ahi host communities) were conducted.
78. Key information of the resettlement plan including measurement of losses, detailed asset valuations, entitlements and special provisions, grievance procedures, timing of payments, and displacement schedule will be disclosed to the affected people. The total cost of compensation, relocation, livelihood restoration, as well as for internal and external monitoring, including contingencies, is estimated to be $6.7 million. Financing is proposed to be provided by the Government, ADB loan, and Japan Fund for Poverty Reduction. Implementation of the resettlement plan and all its components will be coordinated by the Resettlement Office of PPCL, under the close supervision of the Resettlement Committee, which comprises PPCL and the Morobe provincial administration.
C. Operations Phase
79. Operations vary widely among ports depending on the type and volume of materials shipped. However, many activities, such as vehicle maintenance or cargo handling and storage
19 occur at most ports, and have a potential impact on the environment.
80. Sea- and Groundwater Quality. During the port activities of vessel loading and unloading, handling, and storage activities, water pollution could occur as a result of discharges or accidental release of different types of (hazardous) substances from these vessels. With proper control and management, spills can be avoided and contingency in case of a spill can prevent the impact of spills.
81. The new port area is designed mainly for the handling and storage of containers. Considering that the containers are to be closed during loading and offloading as well as storage, the environmental risk, which handling and storage of hazardous cargoes would imply, is very limited. Nonetheless, mitigation measures include the contractor strictly observing the relevant provisions of the PNG Prevention of Pollution of the Sea Act. No specific mitigation measure is required, except for ensuring the adoption and observance of required loading and unloading, handling, and storage practices. The potential impact on water quality is therefore considered insignificant.
82. Air Quality. Because the new port facilities will primarily be developed for closed container handling and storage, and not for the handling and storage of bulk cargo, dust emissions into the air will be minimal. The impact of dust emissions is therefore considered negligible (no impact).
83. The maneuvering of vessels and handling of containers will result in air emissions from (diesel) engines. Also, emissions from heavy-duty vehicles operating within the port area and used for cargo transport between the existing port facilities and the new port area will contribute to air emissions. Some vessels may still use bunker oils. Emissions from the burning of such fuels may impact air quality (increased concentrations of sulfur and nitrogen oxides). Annex VI of the MARPOL Convention, ratified by PNG, aims to prevent air pollution from ships and therefore sets limits on sulfur oxide and nitrogen oxide emissions from ship exhausts and prohibits deliberate emissions of ozone-depleting substances. Lae port management is committed to implementing the MARPOL regulations.
84. The impact of these air emissions on nearby sensitive receptors (nearest Labu settlement over 2 km away) is classified as negligible. At locations of intense vessel and machinery movement in the port, the impact on occupational health needs to be maintained to acceptable levels.
85. Noise Emissions. Main sources of noise include container handling and vehicular movements as a result of cargo handling at the new wharf and container terminal. The increase in noise expectancy of 2 decibels (A-weighted) (dB[A]) at the nearest sensitive receptors (settlement at more than 2 km from the port) will be minimal and remain under the maximum allowable noise. This impact is considered negligible and is classified as not significant.
86. Waste Generation. Port operations, as well as vessels calling at the port, will generate solid and liquid wastes and wastewater. The port of Lae currently has facilities for the incineration of solid waste from vessels, and for off-site disposal of port-generated waste, managed by the National Agriculture Quarantine and Inspection Authority.
87. PNG ratified annexes I, II, III, IV, and VI of the MARPOL Convention, which include regulations aimed at preventing and minimizing pollution from vessels—both accidental pollution and from routine operations. With the Lae port management committed to full implementation of
20 the MARPOL regulations, any impact caused by vessels generating waste at the new port facilities will be properly handled. For port-generated waste, a proper waste management system will have to be installed, following guidelines stipulated by the MARPOL Convention, and the following facilities will have to installed for the waste stream: oily waste and bilge water, general household waste (ship-generated solid waste) from ships, and waste related to (un)loading and storage of goods.
88. In addition, the following necessary equipment/facilities will be needed for the collection of waste: collection truck or collection boat for liquid (oily) waste, containers for collecting solid waste, truck for transporting port-generated waste to the disposal site, treatment facility for the treatment of oily liquid waste, and storage tank for liquid waste. Common waste principles of reduce waste, reuse waste, recycle waste, treat waste, and if not viable, eventually dispose of waste to landfill, will need to be applied. When this system is already properly implemented and monitored, the impact from generated waste can be minor.
89. Accidents, Spills, Fires, and Other Disasters. Increased vessel movements to and from Lae Port could increase the risk of oil container collisions and spillage that result in water and soil pollution, and put human lives at risk with the occurrence of, for example, explosions, fire, and toxic gaseous emissions. Fuel spills that may occur during routine on- or off-loading activities can be carried by storm water into the marine environment and have significant impacts on local water quality and marine biota; or leach into soil and groundwater if not suitably covered.
90. The cargo shipped to and from Lae Port will mainly comprise containers; no chemicals or oil are planned to be loaded or unloaded in the port. However the vessels contain fuel and accidental spills of this fuel can occur in the case of a collision. The volume of fuel containers is limited compared to bulk transport of oil or chemicals, and the impact will be minor when safety regulations are strictly implemented. Nonetheless, mitigation measures will include installing navigation aids to ensure safe transit inside the port; providing pilotage for vessels entering the new port basin; reviewing and updating the existing Oil Spill Contingency Plan; establishing facilities for storing waste materials, fuels, oils, and chemicals at least 20 m away from the water, and not permitting refuelling within this distance; ensuring that surface runoff from areas surrounded by a bund will pass through oil/grease traps prior to discharge; and installing an emergency response system for hazardous goods and oil leaks. With the adoption of strict measures including those as an outcome of the Prevention of Pollution of the Sea Act, the potential for impacts associated with oil spills or other disasters can be managed to a suitable level of safety and is considered to be minor.
91. Impact on the Local Economy. Direct and indirect opportunities for local people to generate income from the new port facilities will occur, either through direct labor in the port or through activities servicing the port and vessels. This is a positive minor impact.
92. Appendix 2 presents a summary of environmental impacts and mitigation measures.
VI. ECONOMIC ASSESSMENT
A. Economic Justification of the Project
93. Lae Port is already working at close to full capacity. Its capacity is assumed to increase to around 2.8 million revenue tons per annum in 2008 after completion of the extension of Berth No. 3. Even then, however, the capacity will not be enough to accommodate the expected cargo
21 flows after 2011. The Project, which is expected to begin operations in 2012, will increase capacity by approximately 1.4 million revenue tons per annum (50%) to about 4.2 million tons per annum.
94. As traffic grows, the port will become increasingly congested, resulting in long vessel waiting times. Congestion may also reduce cargo-handling rates, which are already low. This may stimulate some operating improvements within the existing port, including small-scale civil engineering works. However, none of these responses will be sufficient to accommodate the forecast traffic. Project benefits will include reduction of vessel waiting and service time, and associated inventory costs and benefits to the PNG economy by avoiding suppression of trade.
95. Lae Port is the most important port in PNG. In view of the lack of other port facilities in the same area, no alternative port is available to handle overseas and coastal cargo if Lae Port is not developed to accommodate the projected increase in overseas and coastal trade.
96. Since PNG is an export-driven economy, economic growth is very much dependent on the provision of port facilities for exports and export-related imports. Because Lae Port is the most important port in PNG operated by PPCL, its inability to handle future trade growth will seriously affect the economic growth of PNG. The overall project costs are currently estimated at $155 million. The economic internal rate of return of the Project currently stands at 31.9% with a net present value evaluated of about K828 million.
B. Environmental Costs and Mitigation Requirements
97. The Project is designed to minimize environmental impacts; the cost for mitigating measures and monitoring of environmental impacts are included in the overall project cost estimate. The technical specifications for the mitigating measures and the requirements for environmental monitoring during construction are included in the bidding documents. The major environmental concern is the disposal of dredged material that cannot be reused in the deeper parts of Huon Gulf. Other mitigating measures are subject to best engineering practices in agreement with strict international standards. These are made an integral part of the technical specifications of the bidding documents, and the costs are included in the engineers’ cost estimate and in the tender price to be expected.
98. Environmental monitoring costs during construction are tentatively estimated at $18,500. It covers the required monitoring activities. These are included in the engineer’s cost estimate and in the tender price to be expected. Environmental monitoring during operations is still to be implemented by PPCL, both in the without- and with -project situations. A unit will be established within PPCL to be responsible for handling environmental and social aspects of the Project during implementation and operation. The international consultant (environmental management specialist) will train the staff to carry out their responsibilities in environmental management and monitoring for the Project.
99. The Project has a major impact on (i) residents of the three settlements in the project area (Maus Markham, Sodas, and Wara Tais) as the land will be developed by the Project, and therefore they will be resettled; (ii) the Labu community inhabiting Labu villages located across the Markham River, because of loss of their canoe-landing site and easy access to the city; and (iii) the host community at the resettlement site at Malahang, where part of their land will be developed as the resettlement area. These impacts are mitigated by an extensive resettlement plan, including assistance to develop new livelihoods.
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100. The total cost of the resettlement program, including the livelihood improvement program, is estimated at $6.7 million. These costs are included in the economic and financial evaluation and will be funded by the PNG Government and ADB. An associated HIV/AIDS prevention program is valuated at $750,000 and will be funded by the Swedish International Development Cooperation Agency.
C. Nonmonetary Values
101. Environmental and social issues that are not expressed in monetary values are limited to the following:
(i) Loss of CO2 consumption, due to clearance of 120 ha of vegetation. The 120 ha of scrubland to be cleared do not include mature tropical forest, which has an annual CO2 consumption of 5–6 tons per ha. Assuming that the shrub vegetation has a CO2 consumption capacity of 20% of a mature tropical forest, it would consume about 120 tons CO2/year for the entire project site. This is considered insignificant when compared to the abundant tropical vegetation of PNG, which had an estimated total forest cover of 29,437,000 ha in 2005. (ii) Additional social benefits. These are associated with (a) direct impacts related to employment opportunities during construction and in port operations, direct socioeconomic benefits to the settlers, and direct income generation support to the Labu villagers; and (b) indirect impacts related to enhanced employment opportunities due to the growing economy and opportunities for integration of subsistence economic activities into the formal economy.
VII. ENVIRONMENTAL MANAGEMENT PLAN
A. Mitigation by Project Design
102. The approach of the EIA and engineering process is one of “mitigation through design,” whereby potential environmental impacts are reduced as far as is practicable through an iterative design process. This decreases the overall potential for impacts to occur as well as the need to apply mitigation measures.
103. In view of the major potential environmental impact that could arise from dumping unsuitable dredged material, due attention was given during project design to selecting an appropriate disposal site. The choice of dumping the unsuitable dredge material in deep water rather than on land or in the Markham River may be considered a major mitigative measure. By no longer considering the Markham River mouth for dredge spoil dumping, the most significant impact identified for the Project has been eliminated.
104. Also, the project design is such that material dredged for creating the new port basin is reused as construction material for the wharf and the container terminal, with no need to import construction materials.
B. Mitigation During Project Implementation
1. Pre-Construction and Construction Phase
105. Assessment of environmental impacts and mitigation measures during pre-construction and construction phase has been presented in Chapter V. To ensure that mitigation measures will
23 be put in place, clauses will be included in the tender as well as contract documents, stipulating the need to include mitigation measures including the estimated costs in the overall activities.
2. Port Operation
106. General Considerations. The Prevention of Pollution of the Sea Act, amended by the National Maritime Safety Authority Act (2003), provides for the prevention and control of pollution of the sea by oil and other substances and is meant to give effect in PNG to global and regional agreements regarding pollution of the sea. This act requires that port areas, such as that created by the present Project, include sufficient facilities for pollution abatement of marine waters, as well as contingency measures in the event of the failure of such systems.
107. With the adoption of these measures, the potential for impacts associated with oil spills or other disasters can be managed to a suitable level of safety.
108. Oil Spill Contingency Planning. The International Convention on Oil Pollution Preparedness, Response and Co-operation (1990) requires states to establish measures for dealing with pollution incidents, either nationally or in cooperation with other countries. Ships are required to report incidents of pollution to coastal authorities, and the convention details the actions that are then to be taken. It calls for the establishment of stockpiles of oil-spill-combating equipment (e.g., at ports and harbors), the holding of oil-spill-combating exercises, and development of detailed plans for dealing with pollution incidents. A protocol to the Convention on Incidents by Hazardous and Noxious Substances was adopted in 2000.
109. In PNG, the Department of Transport Division is the competent national authority for oil spill notification. To minimize the risks posed by oil spillages, the Lae Port authority will use an oil spill contingency plan. A draft plan was prepared in 1981 with the assistance of the International Maritime Organization. The plan is currently being revised, with the aim of developing a final strategy for territorial waters and clarifying the division of responsibilities between government departments. At present, the Department of Transport Division designates an oil spill coordinator to oversee operations. For a minor spill within port limits, the coordinator’s responsibilities may be delegated to the PPCL. DEC is responsible for controlling dispersant use and provides environmental advice.
110. The key to successfully reducing or eliminating pollutants from daily port operations entering the environment is proper implementation of a port operations environmental management system. Catastrophic oil spills are infrequent and therefore not included in daily environmental management, because they are covered by the PNG Oil Spill Contingency Plan (para. 88). Furthermore, environmental issues related to discharge of bilge and ballast water into the environment are covered by the regulations of the MARPOL Convention (1994), ratified by PNG.
111. Lae Port belongs to the category of service ports, where the port authority itself develops and operates the majority of activities. Operating ports have direct responsibility for managing components of their operations that may affect the environment. As a result, such ports should develop and implement an environmental management system unique to their operations, provide training of employees responsible for implementation of the system, and make environmental considerations an integral part of the port’s decision-making process (environmentally responsible port management) through preparing guidelines that incorporate environmental principles in port operation. For port maintenance activities, elements of the environmental management system should be included in maintenance work orders.
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C. Monitoring
112. Project Monitoring Program. Table 6 presents the components included in the monitoring program.
Table 6: Brief Outline of the Monitoring Program
Project Phase/ Potential Impacts Monitoring Parameters Activity Preconstruction phase Determine reference values for monitoring before construction starts for noise emissions, air, seawater, and sediment quality Bush clearing Impact from noise emissions Noise levels at receptors Construction phase General construction Impact from waste generation Waste records and site inspections works Impact on seawater quality from Seawater quality near construction site runoff Fishery resources Impact on air quality Air quality on site for occupational health Impact from noise emissions Noise levels at receptors Dredging and Impact on air quality Air quality on-site for occupational health reclamation Impact from noise emissions Noise levels at receptors Deep sea disposal of Impact from deep sea disposal Seawater quality: suspended solids, turbidity dredged material in the Sediment quality marine environment At disposal site and at sensitive receptors Construction of wharf Impact from noise emissions Noise levels at receptors and roads: pile driving Operations phase General port operating Impact on water quality Seawater quality activities Impact on air quality Fishery resources Impact from noise emissions Air quality on-site for occupational health Impact from waste generation Noise levels at receptors Waste records and site inspections Source: Draft EIA of the Project.
113. Prior to any activity in the project area, the contractor will carry out a baseline survey of the levels of noise and vibration, water quality, and sediments. Monitoring will continue during construction. The summary environmental monitoring program is in Appendix 3.
D. Implementation of Mitigation Measures and Monitoring
114. PNG Ports Corporation Limited (PPCL). PPCL is the Executing Agency for the Project. It is also responsible for health, safety, and environmental (HSE) aspects of port expansion projects and port operations. Freight forwarding and stevedoring activities are the only privatized port activities. They operate under a license issued by PPCL.
115. PPCL’s head office organization has a security manager presently responsible for the security of all port operations and a safety and environment coordinator in charge of coordinating implementation of and compliance with the safety and environmental regulations regarding both port infrastructure projects and port operations.
116. PPCL therefore is the agency responsible for implementation of the mitigating measures and monitoring of the environmental impacts associated with the Project.
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117. During project construction, PPCL as the “employer” is represented by a project management unit (PMU) reporting to the PPCL chief executive officer.
118. Ministry of Environment. The Ministry of Environment is the key department responsible for enforcing the Environment Act 2000, amended in 2002. The environment minister has delegated these powers to the director of environment, who is in charge of the procedures for obtaining an environment permit on behalf of the Ministry of Environment. In doing so, the director may issue operating procedures in relation to any matter relating to the application for an environment permit or assessment of an application.
119. Contractor. The contractor to be selected for project implementation will be responsible for the implementation of the environmental management plan (EMP) and monitoring activities as specified in the employer’s requirements in the bidding documents.
120. Environment Consultative Council. In the second public consultation meeting on environmental impacts and mitigating measures held in the framework of the EIA in Lae on 15 March 2007, establishment of an environment consultative council was suggested. PPCL will take the initiative to establish this council, which will be headed by the PMU project director assisted by the environmental expert of the PMU. Members of the council will be recruited from national, provincial, and city authorities related to environmental protection and monitoring, and representatives of the stakeholders. The council will streamline information and public consultation processes. The environment management specialist recruited under the project implementation consultant will support the establishment and operation of the council.
121. International Environment Management Specialist. An international management specialist (recruited under the project implementation consultant) will supervise implementation of mitigation measures and execution of the environmental monitoring program.
E. Responsibilities for Reporting and Reviews
122. The responsibilities for reporting and reviews are summarized in Table 7.
Table 7: Responsibilities for Reporting and Review
Primary Reporting Secondary Reporting Report Type By To Frequency By To Frequency Environment Department PPCL Once prior to PPCL ADB and Once prior to Permit of signature of contractor signature of Environment construction construction contract contract Environmental Contractor PPCL To be submitted Contingency with bid Plan Baseline Survey Contractor PPCL Once prior to PPCL ADB As part of construction regular project activities reports to ADB Monthly Survey Contractor PPCL Monthly PPCL ADB As specified Progress by ADB Reports
Environmental PPCL Department As specified by PPCL ADB As specified Monitoring of Department of by ADB Reports during Environment Environment
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Primary Reporting Secondary Reporting Report Type By To Frequency By To Frequency Construction PPCL Environm Every 3 ent months, or at consultativ request of the e council majority of the members ADB = Asian Development Bank, PPCL = PNG Ports Corporation Limited. Source: Draft EIA of the Project.
123. Summary of Responsibilities. Responsibilities for the execution of the mitigative measures and monitoring program are summarized in Appendix 4.
F. Institutional Arrangements for Environmental Management
124. At present, there is no specific unit assigned responsibility for the environmental management aspects of Lae Port operation, but with no clear tasks and responsibility. Strengthening the capacity of PPCL in environmental management is necessary to ensure proper implementation of the environmental management plan and the monitoring plans. PPCL has agreed that it will establish a division or a unit responsible for HSE management with adequate staff. The division/unit will be responsible for addressing HSE aspects of the Project, including social aspects. The division/unit will be initially placed under the PMU during project implementation, and will be absorbed by PPCL after completion of the Project. Staff of the proposed HSE division/unit will be trained through on-the-job training by the international environment management specialist (under the construction supervision consultant). Training will include environmental and social management, monitoring and supervision, mitigation planning, and other environmental and social management techniques. The specialist will also prepare environmentally responsible port management guidelines. The terms of reference of the international environment management specialist are in Appendix 4.
125. Together with the international environment management specialist, the division/unit will undertake supervision for effective EMP implementation to ensure that the works under the Project are executed in accordance with established standards, criteria, and procedures; ensure implementation of the civil works are in compliance with the EMP; and prepare monitoring and evaluation reports. The division/unit will also be responsible for implementing the EMP for the port during operations, considering the International Convention for the Prevention of Pollution from Ships (MARPOL 73/78 Convention); and implementing environmentally responsible port management guidelines aimed at environmentally sound port operation (the latter will be prepared by the international environment management specialist).
126. A PMU will be established within PPCL. The PMU will be adequately staffed, equipped, and funded. PPCL will set up the PMU initially comprising a project director, two engineers responsible for the marine works (dredging, bank protection) and the terminal works (berth and wharf), two technicians and drafting specialists, one lawyer, one environment management specialist, and one resettlement specialist. The PMU organization is in Figure 1.
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Figure 1: Structure of the Project Management Unit
PPCL Lae Port Port User Resettlement Committee Advisory Committee PMU
Administration Finance
Human Resources Legal
Engineering and
Environment Resettlement Contract Management
Construction Supervision Resettlement Plan Construction Contracts Environment Management Contract Plan Implementation Contract
G. Environmental Responsible Procurement Plan
127. As indicated in the employer’s requirements, bidders are obliged to submit an environmental quality plan providing details of the approach, methodology, and means to be applied by the contractor and any subcontractors to implement the environmental mitigation measures and monitoring plan specified in the bidding documents. This plan will also specify the best practices the contractor will apply to comply with all applicable national and international environmental regulations and standards ratified/signed by PNG.
128. After award of the contract, the contractor will have to elaborate the environmental quality plan and submit that for approval by the engineer and the environment management specialist prior to undertaking any activity in the field. The contractor will be responsible for complying with all applicable national and international environmental regulations and standards at all times.
129. The cost of mitigating measures for the dredging operations is integrated in the overall costs of the activity as normal best practice dredging operations. It does specify rates for the baseline survey and monitoring program. Compliance with the employer’s requirements is the responsibility of the contractor. Noncompliance will entitle the employer to withhold payment.
H. Mechanisms for Feedback and Adjustment
130. The contractor must submit an environmental quality plan as a response to the employer’s requirements and the EMP.
131. During mobilization of the contractor and based on the results of the baseline survey to be carried out by the contractor, the EMP and environmental quality plan will be revised and finally approved by PPCL (PMU advised by the construction supervision contractor). Approval of the revised EMP and the environmental quality plan should be taken after consultation with the environment consultative council.
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132. At completion of the construction contract, the contractor must submit a construction completion report. The construction supervision consultant will submit a separate final report. These reports will contain a section with recommendations to PPCL on how to continue environmental monitoring of the environmental impacts of the Project. This plan will focus on operations of Lae Port.
I. Preliminary Cost Estimate
133. Table 8 provides preliminary cost estimates for EMP implementation. The major impact on costs is the institutional capacity building activities program to develop, introduce, and implement a full health, safety and environment management system in Lae Port; and strengthen the institutional capacity of PPCL to maintain the system.
Table 8: Cost Estimate of the Environmental Management Plan ($)
Precon- Con- Operation Item structiona structiona (per year)b Comments on Incremental Costs A. Mitigation Bush clearance 10,000 0 0 Included in the cost estimate for bush clearing following the best engineering practice and international standards Dredging 0 0 Included in the dredging costs; marginal EMP costs are estimated at zero because the proposed method of dredging and dumping is in line with the best practice and is the most cost- effective solution Pile driving 0 0 No specific marginal costs involved when complying with best practice and following international standards Leakage and spills 10,000 0 Included in the cost estimate for site preparation construction equipment Wastewater 0 0 Included in the cost estimate for site preparation; during operations Lae Port has committed to MARPOL waste reception facilities Site runoff 10,000 Included in the cost estimate for site preparation Solid waste 0 0 Included in the cost estimate for mobilization and site preparation; during operations Lae Port has no waste reception facilities and vessels are not allowed to discharge any waste Noise pollution 0 0 Contractor and port users and operators are to Air pollution 0 0 comply with existing international and national regulations; no mitigating measures required Subtotal (A) 10,000 20,000 0
B. Monitoring Air quality 1,000 1,000 0 Cost for the preconstruction and construction Noise 500 500 0 phase are included in the cost estimate for site Water quality 2,000 3,000 0 preparation; these costs are estimations and Transparency, 1,000 6,000 0 need to be detailed by the contractor. turbidity The costs for operations depend on the Fish species, 1,000 0 0 requirements in the permit and to what extent a abundance full health, safety and environment management Solid waste 0 2,500 0 system is introduced, implemented, and kept. management Subtotal (B) 5,500 13,000 0
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Precon- Con- Operation Item structiona structiona (per year)b Comments on Incremental Costs C. Institutional Capacity Building Activities International 720,000 consultants PPCL staff and 1,250,000 300,000 An estimate is given for implementing and operating costs maintaining a full health, safety and environment management system during operations Subtotal (C) 0 1,970,000 300,000 Total 15,500 2.003,000 300,000 PPCL = PNG Ports Corporation Limited. a These costs are included in the total cost estimate and are financed by PPCL and ADB. b These costs are to be included in the operating budget of PPCL. They do not include the costs to be made by port user and stakeholder organizations that are active in the port and do have to comply with the Port health, safety and environment management system. Source: Draft EIA of the Project.
J. Institutional Arrangement for Resettlement Program
134. A resettlement plan was prepared through intensive and comprehensive consultations with all stakeholders (the three resettlement villages, the Labu villages, and the Ahi host communities). The plan addresses socioeconomic impacts of the Project on the affected communities, and is endorsed by PPCL. The plan covers measurement of losses, detailed asset valuations, entitlements and special provisions, grievance procedures, timing of payments, and displacement schedule; these will be disclosed to those affected. The total cost of compensation, relocation, livelihood restoration, and internal and external monitoring, including contingencies, is estimated at $6.7 million.
135. Resettlement plan implementation will involve several institutions and groups with specific tasks and responsibilities:
(i) PPCL will have overall responsibility for the timely and comprehensive implementation of the resettlement plan and all its elements. (ii) BUP Development Association will develop the land following the agreed schedule to allow the start of civil works at the resettlement site. (iii) A resettlement office will manage day-to-day operations, work with all parties involved, and coordinate implementation of all components of the resettlement plan. (iv) Non-government organizations and other institutions like the National Agricultural Research Institute will assume responsibility for timely implementation of the income restoration and livelihood enhancement programs and assistance for vulnerable households in the relocation process.
136. The most important organizations of affected people are the Communal Resettlement Committee of settlers who will be relocated and the Host Community Committee (HCC). The Communal Resettlement Committee comprises seven representatives from Maus Markham (three), Sodas (two), and Wara Tais (two) settlements, and will (i) keep those affected informed of ongoing developments; (ii) keep and update records of eligible households; (iii) work with the resettlement office to fine tune detailed activities; and (iv) work in close collaboration and hold regular meetings with the Host Community Committee to resolve any emerging issue. Detailed tasks of the resettlement office are presented in the resettlement plan.
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VIII. PUBLIC CONSULTATION AND DISCLOSURE
137. Public Consultation 1. The first public consultation meeting on 31 January 2007 was to inform stakeholders about project components and discuss the main environmental impacts expected from project implementation.
138. The views expressed during the meeting include the following:
(i) The majority of participants supported implementation of the Project, but only if any serious impacts are identified and mitigated. (ii) The stakeholders appreciated being informed of the project characteristics and being provided the opportunity to express their views and concerns during a public hearing. (iii) In 1982, no public consultation meetings were held, which might have been the main reason for failure of the port development project at that time. Lack of information to the stakeholders and the absence of a means to express their views and concerns concerning the project resulted in misunderstandings regarding the scope and impacts of the project among the people directly affected. (iv) Dumping of the dredge spoil from the port basin reclamation area in deeper parts of Huon Gulf is generally accepted as the best option for avoiding adverse impacts on marine life and fisheries. However, the quality of the material should be assessed prior to deciding if marine disposal is allowed. (v) Some misconceptions about the Project and the environmental impacts it may bring about persist.
139. Several stakeholders expressed concerns regarding the quality of the soil to be removed from the port basin and to be disposed of in the marine environment. However, the soil analysis results, which became available after the first public consultation meeting, show that the soil quality in the port basin reclamation area meets the quality standards for dumping of dredge spoil at sea.
140. Regarding the concerns expressed during the meeting about adverse impacts from the Project on the leatherback turtle, if the Markham River disposal option is abandoned, no negative impact on this protected species will be brought about by project implementation. This has to be confirmed by DEC staff members.
141. Public Consultation 2. The second public consultation meeting on 15 March 2007 was to inform stakeholders about the results of the draft EIA and discuss the main environmental impacts expected from project implementation and proposed mitigative measures.
142. In view of the concerns and misunderstandings of some of the stakeholders during the first meeting, more detailed information on the project scope, potential impacts, and measures proposed to mitigate any major impacts was provided.
143. The views expressed during the second meeting include the following:
(i) The general feeling was that the Project should proceed. However, some participants blamed activities of the existing port for all environmental changes over the past years.
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(ii) Some participants misunderstood the consultants’ use of the term “lack of natural values” as “no vulnerable habitats or precious species being present.” This does not mean that no flora or fauna species are present at all. (iii) The tidal creek crossing the marshland area to be dredged will disappear. This impact is irreversible. (iv) According to some local representatives, fish catches have declined as a result of port operations and they anticipate that expansion of port activities would only aggravate this situation. (v) The dredge spoil disposal location should be further offshore at more than the proposed 300–400 m, and dredge spoil should be dumped at more than 50 m. (vi) Stakeholders should be more involved in environmental issues related to port development and operation, and be represented in the PMU.
144. With respect to the relative importance of the disappearance of the tidal creek crossing the marshland area to be dredged, fishery resources are mainly provided by the Labu Lakes, Markham River mouth, and nearshore waters of Huon Gulf. Currently, the tidal creek in the project area plays only a marginal role in providing local residents with fishery resources and other natural resources.
145. With respect to declining fish catches, considering the increasing population pressure on natural resources in the fishing areas, in particular the Labu Lakes, overfishing of the available resources is more likely to be the cause of diminishing catch per unit of effort over the past years rather than port activities. For example, the pressure on shellfish resources in the tidal creeks is very high. In some cases, the shellfish are not collected for consumption, but the shells are used to produce lime required for chewing betel nut.
146. Toward the end of the meeting, PPCL proposed that a working committee representing local stakeholders be established, to provide stakeholders with ample opportunity to be involved in the port development process. This might be considered as the most positive result of the second public consultation meeting.
147. PPCL should provide the members of the working committee with clear information on the nature of project activities and on the timing of their implementation. Also, PPCL should inform committee members of measures that will be taken to avoid damage to the natural environment and its related fishery resources.
148. To reach consensus on the need for the Project to be implemented and to avoid misunderstandings of its impacts, committee members must be kept well informed on project progress and be offered the opportunity to express stakeholders’ concerns during regular meetings.
IX. CONCLUSIONS
149. The proposed Lae Port Development Project is identified as one of the priority development projects under the Government’s Medium-Term Development Strategy for 2005−2010. It is in line with the strategy’s’ objective of rehabilitating and maintaining transport infrastructure. The Project will be a major undertaking for PNG and will contribute to the country’s economic development. Considerable benefits—direct and indirect—are projected, including significant employment opportunities. At the provincial and district levels, Lae Port serves as the principal gateway for Morobe Province as well as the Highlands Region, the most populous region in the country and richly endowed with natural resources. In 2004, of the total cargo passing through the 16 PNG ports, Lae Port accounted for around 51% of general cargo
32 and 56% of container cargo. Therefore, Lae Port is important for national economic development, and will support provincial and district economic development by providing infrastructure that may facilitate export and import of commodities from Morobe Province. Rehabilitating and upgrading Lae Port is therefore of prime importance.
150. To make the Project a truly viable undertaking, environmental considerations need to be incorporated in the Project’s development and implementation strategies. The Environment Act of 2000 provides the general framework on how to effectively manage the country’s environment and natural resources. The EIA examines the potential environmental impacts of project construction and operation. The EIA meets the requirements of the Government and, in principle, complies with ADB’s Environmental Assessment Requirements.
151. The approach of the EIA and engineering process has been to “mitigate environmental impacts through design,” whereby potential environmental impacts are reduced as far as practicable through an iterative design process. Particular attention is given to dredging and disposal of unsuitable dredged materials. This decreases the potential for impacts to occur as well as the need to apply mitigation measures. Potential impacts of preconstruction, construction, and operation are assessed, including impacts of offshore disposal of dredged material on marine resources particularly fisheries, which are of socioeconomic importance, as well as potential impact on the leatherback turtle, which has high conservation value. Potential impacts of project operation are also considered.
152. As Lae Port development will affect the population presently inhabiting the proposed tidal basin, it will require physical relocation of 2,912 people from three villages: Maus Markham, Sodas, and Wara Tais. Extensive consultation was undertaken with all stakeholders including (i) directly affected communities to be resettled, (ii) Labu village communities that will lose canoe- and motorboat-landing site, and (iii) the host communities in the resettlement area. A resettlement plan was prepared. Adequate funding has been allocated to implement the resettlement plan and address social impacts.
153. The Project is planned and designed to manage its environmental impacts and minimize them to acceptable levels. A range of specific mitigation measures has been developed, taking into consideration their feasibility and effectiveness. Environmental management and monitoring plans were prepared and adequate funding has been allocated for their implementation. No major insurmountable environmental impacts are expected to be associated with the construction and operation of the Project, assuming that the recommended mitigation measures are implemented. Environmental monitoring will be carried out to ensure that the EMP is implemented and any unforeseen impacts are managed appropriately.
RESULT OF TWO SOIL SAMPLINGS AND ANALYSIS UNDERTAKEN DURING THE ENVIRONMENTAL IMPACT ASSESSMENT
Initial Soil Sampling Additional Soil and Sediment Sampling Parameter Dutch Test values Australian Standards Result of Soil Analysis Result of Bottom Result (CTT, 2004) (Screening/Maximum) (Compared to Sediment Analysis (Compared to CTT) (mg/kg dry weight) (mg/kg dry weight) NODGDM) (Dumping Site)
Arsenic (As) 29 <0.04 20/70 0.8–8.2 7.4–14
Cadmium (Cd) 4 1.7–2.6 1.5/10 <0.01–0.4 <0.1–0.1
Chromium (Cr) 120 22–59 80/370 13–59 34–40
Copper (Cu) 60 41–97 65/270 38–100 (Av 67) 77–86 (Av 82) (1 sample exceed (11 samples exceed (all samples exceed standard) screening level) screening level)
Mercury (Hg) 1.2 <0.04 0.15/1 <0.01–0.13 0.03–0.04
Nickel (Ni) 45 42–84 21/52 28–78 (Av 48) 54–58 (Av 56) (5 samples exceed (19 samples exceed (all samples exceed standard) screening level) screening level)
Lead (Pb) 120 <0.04–3.3 50/220 2.3–32.3 7.6–9.8
Zinc (Zn) 365 58–99 200/410 39–210 74–79
CTT = Chemistry-Toxicity-Test, NODGDM = National Ocean Disposal Guidelines for Dredged Material. Conclusion: Two parameters exceed screening levels, i.e., Cu and Ni. Nonetheless, the average concentration of Cu and Ni from the dredging site are below
concentrations reported at the proposed spoil disposal site. According to NODGDM guidelines, the sediment to be nontoxic and acceptable for ocean disposal 1 Appendix even though the relevant screening levels were exceeded. Sources: Initial sampling by Haskoning Nederland BV (National Analysis Laboratory, Lae, PNG), and additional soil and sediment sampling by Sinclair Knight Merz (ALS Environmental Pty Ltd and HRL Technology Pty Ltd, Australia). 33
34
SUMMARY ENVIRONMENTAL MANAGEMENT PLAN 2 Appendix
Project Phase / Implementing Supervisor/ Cost Potential Impacts Proposed Mitigation Location Activities Parties Monitoring A. Preconstruction phase Bush clearing Impact on natural values Undertake planting of trees and Proposed Contractor: PMU: - All vegetation in future port area will other ornamental plants as part tidal basin implementing Engineer, disappear (120 ha); the vegetation of landscaping activities in the area contract supervising consists of secondary growth; no future to offset, even on a limited conditions consultant precious fauna or flora species; scale, the lost vegetation. (environment irreversible but minor negative management impact. specialist)
Impact on CO2 balance According to ADB and PNG CO2 consumption capacity of scrub environmental policies, CO2 vegetation (120 ha) will be lost; minor offset mitigation for clearing the negative impact. project land will not be required.
Impact on air quality Gradually burn vegetation to Smoke development from burning (as avoid massive smoke firewood or otherwise) of cleared, development to prevent adverse dried vegetation; minor negative impact on people and the environmental impact, but opportunity environment, and occurrence of for minor positive social impact if wildfires. provided to the local population for use as firewood. Respect local regulations regarding wood fires.
Impact from noise emissions No mitigation is required, except Noise from chain saws, bulldozers for good maintenance of etc., perceived at the nearby equipment. sensitive receptor (nearest residential area is more than 2 km away); minor negative impact.
Project Phase / Implementing Supervisor/ Cost Potential Impacts Proposed Mitigation Location Activities Parties Monitoring B. Construction phase General Impact from waste generation Before the start of the work, the Port area Contractor: PMU: - construction Solid and liquid wastes can have contractor should prepare a implementing Engineer, activities and major impact on water and soil waste management plan as part contract supervising reclamation and quality; considered minor negative of the EMP. conditions consultant construction of impact since construction activities (environment wharf and roads are localized and temporary in Establish a recording system for management nature. the amount of waste generated specialist) and disposed of. Environment Provide training to workers on management the need for site cleanliness and specialist to on appropriate waste design solid management procedures. waste management Apply common waste principles system of reduce waste, reuse waste, recycle waste, treat waste, and if not viable, eventually dispose of waste to landfill.
Impact on seawater quality from Prevent excessive generation of Proposed Contractor: PMU: Incorporated site runoff runoff (such as settling pond) to tidal area implementing Engineer, in project Silt-laden runoff during rain events minimize the potential of such contract supervising costs may generate localized plumes with effluents reaching the marine conditions consultant concentrations of suspended solids; environment. (environment minor negative impact due to limited management time scale of construction. Apply regular monitoring and specialist) immediate feedback mechanism.
Impact on air quality Limit air emissions according to Proposed Contractor: PMU: Incorporated (i) Air emissions from use of heavy best practices and internationally tidal basin implementing Engineer, in project machinery and equipment; no accepted standards. area contract supervising costs 2 Appendix significant impact considering conditions consultant the distance to nearest sensitive Maintain the vehicles and (environment receptor (more than 2 km away), construction machinery and management temporary nature of vessels in good condition. specialist) construction, and wind velocity. 35
36
Project Phase / Implementing Supervisor/ Cost
Potential Impacts Proposed Mitigation Location 2 Appendix Activities Parties Monitoring Cover vehicles carrying dusty (ii) Dust emissions as a result of materials and put in place routine land reclamation; no significant best-practice measures to impact since the nearest reduce fugitive emissions. sensitive receptors is more than 2 km away.
Impacts from noise emissions No specific mitigation is required Proposed Engineering PMU: - Noise emissions from use of heavy except for working according to tidal basin Team: Engineer, machinery and equipment; minor meet internationally accepted area Measures Supervising negative impact since nearest standards with respect to noise included in Consultant residential area is more than 2 km emissions. construction (Environment away. contract Management Best practice measures are specification Specialist) Noise emissions from the use of recommended to retain noise dredging machinery and equipment; emissions to a practicable no significant impact given the minimum. Contractor: remote distance of the nearest implementing human settlement (over 2 km away). Silent (hydraulic) pile driving contract techniques will be applied. No conditions Noise emissions from pile driving; pile driving should take place minor negative impact. from 1900 hours to 0700 hours, in agreement with international standards.
Impact from vibrations No specific mitigation is required Proposed Engineering PMU: - No vibration-sensitive marine except for working according to tidal basin team: Engineer, mammals live in the project area; no meet internationally accepted area Measures supervising significant impact. standards with respect to included in consultant vibration from equipment. construction (environment contract management specification specialist)
Contractor: implementing contract conditions
Project Phase / Implementing Supervisor/ Cost Potential Impacts Proposed Mitigation Location Activities Parties Monitoring Impacts on soil quality No specific mitigation Proposed Engineering PMU: - Possible acid or other toxic leachate tidal basin team: Engineer, from dredged, stocked material; no Ensure that the dredged area Measures supervising significant impact, since the dredged materials to be disposed of are included in consultant material is similar to the properties of not contaminated (or mixed) with construction (environment soil in the disposal area. hazardous / toxic wastes. contract management specification specialist)
Contractor: implementing contract conditions
Impacts from leakage or spillage Contractor should prepare Proposed Engineering PMU: Incorporated Accidental leakage or spillage of fuel guidelines and procedures for tidal basin team: Engineer, in the project and oil from dredgers and other immediate clean-up actions area Measures supervising costs marine equipment; minor negative following any spillages of oil, fuel included in consultant impact. or chemicals. construction (environment contract management Observe good operating specification specialist) practices and proper maintenance of plant and equipment (bulldozers, trucks, Contractor: vessels). implementing contract Keep the number of chemical, conditions fuel and oil containers to a minimum and return to storage areas when not in use.
Establish locations for storing
waste materials, fuels, oils, 2 Appendix chemicals, and equipment that are as far from the water as possible and not prone to flooding.
37
38
Project Phase / Implementing Supervisor/ Cost
Potential Impacts Proposed Mitigation Location 2 Appendix Activities Parties Monitoring
Provide all fuel tanks and chemical storage areas with locks and be sited on sealed areas.
Store drums and liquid containers on an impermeable base within a bund.
Impacts from wastewater Discharge wastewater into a foul Proposed Engineering PMU: Incorporated On-site generated sewage and sewer sewage and wastewater tidal basin team: Engineer, in the project wastewater affecting the quality of from toilets, kitchens. area Measures supervising costs water; no significant impact because included in consultant of suitable arrangement for sewage Never discharge sewage or construction (environment management. wastewater from the contract management vessels/equipment used for specification specialist) dredging into the sea.
Make adequate provisions for Contractor: disposal by pumping sewage to implementing a road tanker for disposal to the contract city sewage network. conditions
Impact on local economy Make local people properly and Proposed Engineering PMU: - Provision of temporary labor fully aware that the labor tidal basin team: supervising opportunities for local people; minor opportunity is temporary in order area Measures consultant positive impact on the economy of to not create wrong expectation included in the local communities. and impression on the part of the construction people. contract specification
Contractor: implementing contract conditions
Project Phase / Implementing Supervisor/ Cost Potential Impacts Proposed Mitigation Location Activities Parties Monitoring Dredging and Impacts from deep-sea disposal Include clauses in the tender Proposed Engineering PMU: Integrated in disposal documents that requirement to tidal basin team: Engineer, construction Potential impacts are dispose of dredged material area and Measures supervising costs and • introduction of minor elevated must be put in place to prevent Huon Gulf included in consultant billing rates levels of suspended solids in the distribution of suspended solids construction (environment for dredging waters surrounding disposal site in the waters outside the contract management • reduced light penetration due to disposal site. specification specialist), increased concentrations of DPW; suspended solids Consider a requirement to provincial DEC • local covering of the seabed with discharge the surface layer of Contractor: sediments that could adversely peats and clay from the dredged implementing affect coral reefs and sea grass site as near to the bottom as contract beds practicable to reduce the conditions dispersal of fine material away • transport, particularly of the finer from the dredging area and fractions of sediments, by wave reduce the risk of water-column and tidal action and residual hypoxia. current movements • high biological oxygen demand Regularly relocate dredge spoil (BOD) due to the decay of organic discharge system evenly over matter from dredged materials the area, particularly when the • biological consequences, such as build-up of dredge spoil under smothering of benthic organisms in water becomes higher than 5 m the disposal area above original bed level.
There is a risk that fine materials will Regularly monitor water quality, be dispersed or be transported especially the concentration of considerable distances from the suspended solids in vulnerable disposal site, and may reach coral areas (especially in southern reefs and sea grass areas. When not direction). Parameters to be properly managed, this will pose a monitored include salinity, major negative impact. dissolved oxygen, acidity and
temperature, total suspended 2 Appendix Existing hydrodynamic behavior in solids, transparency, grease and the disposal area, however, [in terms oil of: wave characteristics, depth of waves, wind speed, influence of Consider installing a screen wind-generated currents, and (v) around the mouth of the dredge undercurrent] suggests that disposal 39
40
Project Phase / Implementing Supervisor/ Cost
Potential Impacts Proposed Mitigation Location 2 Appendix Activities Parties Monitoring of dredged material could be spoil pipe. controlled and managed. Therefore, the possibility of major negative impact can be avoided or reduced to acceptable level.
Impact on marine environment Adopt best dredging practice Proposed Engineering PMU: Integrated in Disruption of natural marine and disposal of spoils by tidal basin Team: Engineer, construction ecological processes: since there is following appropriate area and Measures supervising costs and no indication of macro biota such as engineering design and Huon Gulf included in consultant billing rates coral or sea grass and other benthic monitoring and feedback system construction (environment for dredging flora and fauna in the immediate to limit any possible disruption of contract management vicinity of the disposal area, not to ecological processes. specification specialist), mention high turbidity, no significant DPW, environmental impact on natural provincial DEC component of high values is Contractor: expected. implementing contract conditions
Impact on fisheries Same as above. Proposed Engineering PMU: Integrated in Increases in suspended sediments tidal basin team: Engineer, construction and turbidity levels from disposal area and Measures supervising costs and operations may have adverse effects Huon Gulf included in consultant billing rates on marine animals and plants. But construction (environment for dredging since organisms (particularly fishes) contract management in the area have already adapted to specification Specialist), this condition (some fish will readily DPW, move away from or avoid areas of provincial DEC high suspended solids), no significant Contractor: impact is expected. implementing contract conditions
Impact on turtle nesting Be sensitive to the existing Proposed Engineering PMU: Integrated in Possible effect on the leatherback programs and activities being tidal basin team: Engineer, construction turtle (Dermochelys coriacea) nesting applied by a turtle conservation area and Measures supervising costs and grounds due to dumping of dredged project and adopt relevant Huon Gulf included in consultant billing rates
Project Phase / Implementing Supervisor/ Cost Potential Impacts Proposed Mitigation Location Activities Parties Monitoring materials; however, about 70% of practices to lessen possible construction (environment for dredging nesting turtle population located in adverse impact on the nesting contract management Lababia beach, which is more than sites. specification specialist), 60 km from the disposal site. No DPW, significant impact on turtle nesting Coordinate with Huon Coast provincial sites is expected. Leatherback Turtle Recovery Contractor: DEC, Huon Project for monitoring. implementing Coast contract Leatherback conditions Turtle Recovery Project Socioeconomic impact Resettlement plan must be duly Proposed Communal PMU: Resettlement Displacement of the homesteads, implemented, and ensure that tidal basin resettlement Resettlement plan: $6.7 settlements, houses and other compensation packages and area and committee specialist million structures, farms, gardens, and tree related replacement cost are Huon Gulf CRC), host plantation of affected people in the justly paid. community Maus Markham, Sodas, and Wara committee Tais settlements. These people Give priority to directly affected (HCC), BUP however, welcome the opportunity to local people for possible long- Development live in a healthier environment and term employment for the Project. Association, have their own residential lots and resettlement farms offered by the Project. Hence, Provide a suitable alternative office and a major positive impact is anticipated. landing area including a market to NGOs and ensure proper access to town to other related The Labu community will lose their these communities. institutions. canoe-landing site, which is the main access to town. The land is presently utilized as farmland by the Ahi community Some parts of land of the host and will be leased by the communities at the resettlement site at government. The owners will be Malahang will be used. compensated at replacement costs. Appendix 2 2 Appendix 41
42
Project Phase / Implementing Supervisor/ Cost
Potential Impacts Proposed Mitigation Location 2 Appendix Activities Parties Monitoring Operations phase Impact on water quality The contractor must strictly New port and Contractor: PPCL - Water pollution as a result of loading observe the relevant provisions existing port Implementing
and unloading, handling and storage, of the PNG Prevention of area contract and discharges or accidental Pollution of the Sea Act. conditions releases of different types of (hazardous) substances from Ensure the adoption and Tidal basin vessels. observance of required loading and the port and unloading, handling, and area storage practices. Impacts on air quality The contractor must strictly New port and Contractor: PPCL - Dust emissions affecting air quality; observe the relevant provisions existing port implementing no significant impact since the port is of the PNG Prevention of area contract designed for closed containers and Pollution of the Sea Act. conditions not for bulk cargo. Comply with Annex VI of the Tidal basin Emission of polluted air from heavy- MARPOL Convention, ratified by and the port duty vehicles operating within the PNG, which aims at the area port area, and the maneuvering of prevention of air pollution from vessels and handling of containers ships and hence sets limits on will result in air emissions from sulfur oxide and nitrogen oxide (diesel) engines; minor negative emissions from ship exhausts. impact to people operating the port, Ensure that emission of polluted but negligible or no significant impact air from heavy-duty vehicles to the nearest settlement area since it operating within the port area will is located more than 2 km away. not reach the nearest settlement area.
Impacts from noise emissions The contractor must Strict New port and Contractor: PPCL - Noise emissions generated by port observance by the Contractor of existing port implementing operation activities and increased the relevant provisions of the area contract traffic; no significant impact PNG Prevention of Pollution of conditions considering the more than 2 km the Sea Act. distance of the nearest settlement Tidal basin area from the port; the noise to be Ensuring that noise emission is and the port produced is within the allowable within the allowable level and will area level. not discomfort people residing in the nearest settlement area.
Project Phase / Implementing Supervisor/ Cost Potential Impacts Proposed Mitigation Location Activities Parties Monitoring Impacts from waste generation Lae Port authorities are to apply New port and Contractor: PPCL - Generation of solid and liquid wastes appropriate procedures, in existing port implementing and wastewater from port operations agreement with national and area contract and those brought in by calling international regulations, for the conditions vessels; minor negative impact since handling and storage of Lae Port has existing facilities for the hazardous cargoes and waste Tidal basin incineration of solid waste and is generated by handling and and the port committed to full implementation of storage of this type of cargoes. area MARPOL Regulations.
Follow the guidelines stipulated by the MARPOL convention and install the following facilities for the waste stream: oily waste and bilge water; general household waste (ship generated solid waste) from ships; and wastes related to (un)loading and storage of goods.
Make available the following necessary equipment/facilities for the collection of waste: collection truck or collection boat for liquid (oily) waste, containers for the collection of solid waste, truck for the transport to the disposal site of port-generated waste, treatment facility for the treatment of oily liquid waste, storage tank for liquid waste.
Apply common waste principles 2 Appendix of reduce waste, reuse waste, recycle waste, treat waste, and if not viable, eventually dispose of waste to landfill.
43
44 Appendix 2
Cost Incorporated in operational budget - PPCL PPCL Monitoring Monitoring Supervisor/ Supervisor/
Parties Implementing Implementing Contractor: implementing contract conditions Contractor: implementing contract conditions New portNew and existing port area Tidal basin and the port area New portNew and existing port area
Proposed Mitigation Mitigation Proposed Location Install navigation aids to ensure safe transit inside the port. Provide pilotage for vessels entering the new port basin. Review and update existing Oil Spill Contingency Plan. Establish facilities for storing materials,waste fuels, oils, chemicals at least 20 m away no refuellingfrom the water; this distance. within Ensure that surface runoff from areas surrounded by a bund will pass through oil/grease traps, prior to discharge. Install an emergency response for hazardoussystem goods and oil leaks. Make the local people properly and fully aware that the labor opportunity is not regular in order to not create wrong expectation and impression on the part of people. soil, sea, and Potential Impacts Impacts Potential ground- and surface in the water new the safetyport areas. But with regulations imposed in PNG, and properwith management, expected negative impact is considered minor. Impact from accidents, spills, fires, and other disasters Increased vessel movements to and from Lae Port increases the risk of oil spillage, collisions, and fires. Also spills during fueling or maintenance on vessels that occur during routine operations can result in contamination of economy on local Impact Direct and indirect opportunities for local people to generate income from port facilities; minor the new positive impact is anticipated. ject Phase / ctivities PPCLkm = Guinea, kilometer, PNG = = Papua New PNG Ports Corporation Limited. Source: Draft EIA of the Project. Pro A Appendix 3 45
SUMMARY ENVIRONMENTAL MONITORING PROGRAM
A. Baseline Survey
1. Prior to any activity in the project area, the contractor will carry out a baseline survey with respect to levels of noise and vibration, water quality, and sediments as specified in the following paragraphs.
1. Noise and Vibration
2. Sites. Prior to any activity on the project site, the contractor will measure noise and vibration levels in:
(i) Labu village, south of the Markham River; (ii) the residential area of Lae town, nearest to the construction site; and (iii) the residential area nearest the current terminal operations.
3. Measurement Frequency. Noise and vibration should be measured on a regular basis at the instruction of the engineer to coincide with critical activities such as piling and cargo- handling operations taking place during the night and daytime.
4. Methodology. The contractor will propose the equipment to be used and the method to be applied for the acceptance of the engineer, for instance hand-held equipment for applications such as an integrating (averaging) sound meter and a calibrator.
2. Water Quality
5. Sites. Transects I, II, III, and IV: Water quality monitoring should take place every 500 meters (m) along transects I, II and III; and every 5,000 m along transect IV. The location of transect I, II, and III is indicated in Figure A3.1. Transect IV runs from Labu Bay to Busama and Salamaua at a distance of approximately 50 m from the coastline as indicatively shown in figures A3.1 and A3.2. Positioning of the sampling stations should be carried out by means of global positioning system technology (GPS). All measurements will be carried out in the top 2 m water surface layer, except for (i) the total suspended solids (TSS) in the four sampling stations in the estuarine river stretch of the Markham River (Transect II), and (ii) the sampling stations along Transect IV, where depth-integrated samples will be taken.
6. Parameters. Table A3.1 provides the parameters to be monitored.
Table A3.1: Parameters to be Monitored
Parameters Remarks Salinity Key parameter for the marine environment; salinity values also reflect influence of river water (Markham River) on the marine environment Dissolved oxygen High relevance for marine life pH and temperature High relevance for aquatic life in general Total suspended solids High relevance for this specific project environment Transparency High relevance for this specific project environment Grease and oil According to the government’s “Water Quality Criteria for Aquatic Life Protection”, grease and oil should be absent in the ambient water. pH = a measure of the acidity or alkalinity of a solution. Source: Draft EIA of the Project.
46 Appendix 3
7. Methodology. The contractor/tenderer will propose the equipment and survey methodology to be used in taking the water quality samples for the acceptance by the engineer. Table A3.2, summarizes common methods for measuring water quality parameters to be monitored.
Table A3.2: Water Quality Parameters: Monitoring Methods
Parameter Methods Salinity In situ, using electronic field equipment Temperature In situ, using electronic field equipment pH In situ, using electronic field equipment Dissolved oxygen In situ, using electronic field equipment Transparency Secchi Disc (field observation) Total suspended solids Laboratory analysis of samples Grease and oil Laboratory analysis of samples pH = a measure of the acidity or alkalinity of a solution. Source: Draft EIA of the Project.
8. For suspended sediment sampling a Go-Flow sampler can be used, which can be lowered at the required depths. The water trapped at a particular depth is transferred into plastic bottles; suspended sediment analysis will take place in the laboratory. Suspended sediment is determined from the mass of dry matter retained by a 0.45 micron filter paper, divided by the volume of water passed through the filter. TSS is expressed in milligrams of dry matter per liter of water.
3. Sediment Quality
9. Sites. In the four sampling stations in the estuarine river stretch of the Markham River (Transect II) sediment samples will be taken of the bed material. These sediment samples, together with the TSS of the depth integrated water samples in the Markham River in Transect II and the depth integrated water samples of Transect IV will be subject to laboratory tests.
10. Parameters. The sediment samples will be analysed by a reputed soil testing laboratory. The analysis to be carried out for each of the samples collected will comprise the following:
(i) trace elements (aluminium, antimony, arsenic, cadmium, chromium, cobalt, copper, iron, lead, manganese, mercury, molybdenum, nickel, selenium, silver, vanadium, zinc); (ii) extractables (calcium, magnesium, potassium, sodium, sulphate, chloride); (iii) nitrogen-total (Kjeldahl), Phosphorus-total, Sulphur-total, Boron-total; (iv) oil and grease; (v) organic carbon; (vi) cyanide; and (vii) conductivity.
11. Methodology. The contractor/tenderer will propose the equipment and survey method to be applied.
4. Water Velocity
12. Sites. In the four sampling stations located in the estuarine river stretch of the Markham
Appendix 3 47
River, the water velocity must be measured at the surface and at 2 m and 5 m below the water surface while taking the bed and suspended load samples.
13. Methodology. The contractor/tenderer will specify the equipment and survey method to be applied.
5. Fishery resources
14. An inventory of the fish species and abundance of fish in the catches of the local fishermen will be carried out to the construction activities. This will be repeated during project implementation. This survey will be carried out at the Labu fish landing site.
B. Monitoring during Preconstruction and Construction
1. Noise and Vibration
15. Sites. The sites for monitoring of noise and vibrations during preconstruction and construction are the same as those for the baseline survey in:
(i) Labu village, south of the Markham River; (ii) the residential area of Lae town, nearest the construction site; and (iii) the residential area nearest the current terminal operations.
16. Measurement Frequency. The sound level monitoring results should comply with internationally adopted standards for residential areas (at night time: 65 dB[A] and at daytime: 75 dB[A]). During execution of the works, noise levels and vibrations will be recorded three times during each of these operations:
(i) bush clearance, (ii) bush clearance + dredging, (iii) dredging prior to the start of pile driving, and (iv) pile driving.
2. Water Quality
17. Sites. Water quality monitoring during preconstruction and construction will be carried out in the same sampling stations along transects I, II, III, and IV as indicated for the baseline survey. In addition water quality monitoring will be carried out during dredging and disposal of dredged materials in the vicinity of the cutter suction dredger (CSD), and at the site of disposal.
18. Parameters. The same parameters will be measured as indicated for the baseline survey.
a. Frequency
19. Transects I, II, and III. The baseline survey program in the transects I, II, and III will be repeated every week during preconstruction and construction activities. TSS and oil and grease content, however, will be determined once every month.
20. Transect IV. The baseline survey program in Transect IV will be repeated every month during preconstruction and construction activities.
48 Appendix 3
b. Dredging and Disposal Operations
21. Water quality monitoring of all parameters will be carried out every day in the vicinity of the reclamation dredger and at the site of disposal. TSS and oil and grease content will be determined every week.
3. Sediment Quality
22. Sites. Bed samples will be taken in the four sampling stations of the estuarine river stretch of the Markham River along Transect II. During dredging and disposal operations, samples will be taken of the dredged material.
a. Frequency
23. Along Transect II, bed samples in the four sampling stations in the estuarine river stretch of the Markham River will be once a month. These samples, together with the TSS samples taken in transects I, II, III, and IV will be analyzed in a reputed soil testing laboratory as indicated for the baseline survey.
b. Dredging and Disposal Operations
24. During the dredging and disposal operations, samples of the dredged material will be taken once every day. Once every week, samples will be taken that, together with the suspended sediment samples, will tested in a reputed soil testing laboratory analyzing the same parameters as indicated for the baseline survey.
4. Water Velocity
25. Sites. In the four sampling stations located in the estuarine river stretch of the Markham River, the water velocity must be measured at the surface and at 2 and 5 m below the water surface while taking the bed and suspended load samples.
26. Frequency. Being associated with the sampling of the bed material, these measurements will be carried out once every month.
5. Fishery resources
27. An inventory of the fish species and abundance of fish in the catches of the local fishermen will be carried out to the construction activities. This will be repeated during project implementation. This survey will be carried out at the Labu fish landing site and will involve:
(i) observations by a fish biologist of species and their relative abundance in the catches, and (ii) interviewing of fishermen by a sociologist on trends of species abundance (CPUE = Catch per Unit of Effort).
C. Database
1. All water and sediment samples will be kept and stored in an appropriate manner to enable testing in a reputed laboratory. All data related to the baseline survey, the monitoring program, and the laboratory results will be kept in an electronic data base.
Appendix 3 49
Lae Port I Markham River
II
III
IV Figure A3.1. Location of Transects
Lae
Labu Bay
IV
Busama
Salamaua
Figure A3.2. Transect IV: Labu Bay–Busama–Salamaua
50 Appendix 4
TERMS OF REFERENCE OF THE ENVIRONMENTAL MANAGEMENT SPECIALIST
1. The responsibilities of the environment management specialist will include the following:
(i) Ensure that project implementation complies with the Government’s environmental policy and procedures, Environmental Policy (2002) and requirements of the Asian Development Bank (ADB), project environmental impact assessment (EIA) and environmental management plan (EMP), World Bank Group’s Environment and Health and Safety Guidelines, and loan covenants. (ii) Provide technical support to the project management unit (PMU) and timely assistance to the contractor including induction on environmental aspects of the Project prior to commencement of the work, and during implementation in all matters related to interpretation of the contract documents related to the EMP and monitoring plan. (iii) Assist, advise, and provide supervision for effective EMP implementation to ensure that the works are executed in accordance with established standards, criteria, and procedures; ensure implementation of the civil works in compliance with the EMP; and make recommendations for certification of payment to be made to the contractor for the engineer’s consideration. (iv) Review present status of environmental management in Lae Port and identify issues/problems. Prepare detailed EMP of port during operating phase considering the International Convention for the Prevention of Pollution from Ships (MARPOL 73/78 Convention), and the associated annexes ratified by PNG1 and Convention on the Prevention of Marine Pollution by the Dumping of Wastes and Other Matter (London Dumping Convention). (v) In coordination with the PNG Ports Corporation Limited (PPCL) and PMU, prepare and implement environmentally responsible port management guidelines aiming at environmentally sound port operation. The guidelines incorporate environmental principles in port operation and will include sanctions and fines for infringement of the guidelines. The environmentally responsible port management guidelines will be for approval by the PPCL Board. (vi) Assist PPCL and the PMU in establishing an institutional arrangement for environmental management of Lae Port in the form of environment, health, and safety division or unit adequately staffed. Undertake the necessary on-the-job training for the appointed staff, and involve them in environmental management and monitoring of port operation. (vii) Identify environmental management components/activities that can be contracted out to private operators, and prepare the necessary arrangements for it. (viii) Assist the PMU in preparing of a manual/booklet, brochures, and pamphlet related to environmental management of the port. (ix) Prepare monitoring and evaluation reports. Submit the reports to the engineer for incorporation in the semiannual report to be submitted to the Government and ADB.
1 For example, Annex I (Regulations for the Prevention of Pollution by Oil), Annex II (Regulations for the Control of Pollution by Noxious Liquid Substances in Bulk), Annex III (Prevention of Pollution by Harmful Substances Carried by Sea in Packaged Form), Annex IV (Prevention of Pollution by Sewage from Ships), and Annex VI (Prevention of Air Pollution from Ships).