Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project

Environmental and Social Safeguards Monitoring Report

Annual Report December 2018

MYA: Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project

Prepared by Project Management Unit, Ministry of Hotels and Tourism (MOHT) for the Asian Development Bank.

This environmental and social monitoring report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature.

In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

CONTETS Page

EXECUTIVE SUMMARY 1. INTRODUCTION ...... 1 1.1 General Information ...... 1 1.2 Project Classification ...... 1 2. IMPLEMENTATION OF ENVIRONMENTAL SAFEGUARDS ...... 1 2.1 Environmental Assessment Report of Production Processes for Fruit Jam, Biscuit, Soap and Natural Dye ...... 1 2.2 Rapid Environmental Assessment (REA) of Proposed Production/Training Centers ...... 2 3. IMPLEMENTATION OF SOCIAL SAFEGUARDS ...... 3 3.1 Objectives and Methodology of the Baseline Survey ...... 3 3.2 Basic Profile of the Value Chain Households ...... 3 3.3 The Weaving Value Chain ...... 4 3.4 The Bamboo Value Chain ...... 5 3.5 The Snack Value Chain ...... 6 3.6 The Fruit Jam Value Chain ...... 8 3.7 Control Households ...... 9 3.8 Conclusion and Recommendations on the Baseline Survey ...... 9 4. SAFEGUARDS MONITORING MISSION 11 4. COMPLIANCE WITH ENVIRONMENT AND SOCIAL SAFEGUARDS ...... 11 4.1 Screening of Environmental Impacts ...... 11 4.2 Mitigation Measures ...... 11 4.3 Consultation with Local People ...... 11 4.4 Disclosure of Information ...... 11 4.5 Environmental Management Plan ...... 11 4.6 Pollution Prevention ...... 12 4.7 Occupational Health and Safety ...... 12 4.8 Impacts on Physical, Cultural Resources ...... 12 4.9 Grievance Redress Mechanism ...... 12 5 CONCLUSION AND RECOMMENDATIONS ...... 12 6 PROPOSED ACTIONS FOR THE NEXT REPORTING PERIOD ...... 13 ANNEXES ANNEX 1 Environmental Assessment Report ANNEX 2 Due diligence report 03.03.2018 ANNEX 3 Union of Myanmar’s Environmental Regulatory Framework ANNEX 4 Land sharing Form ANNEX 5 Mitigation Measures for Construction Activities ANNEX 6 Photos ANNEX 7 Rapid Environmental Assessment of Multipurpose Centers 2

EXECUTIVE SUMMARY The “Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project (EEPW-EWECP)” received from Asian Development Bank (ADB) through a funding from Japan Fund for Poverty Reduction (JFPR), a support amounting $3.45 million for the period 2017-2019.The Project aims to support micro and small enterprise (MSE) development, and increased employment and economic opportunities for the poor and women selling crafts and local food to tourists and residents in the east-west economic corridor. This project is an integrated approach to enable micro entrepreneurs to access technical training, skills in business management, appropriate technology, finance, and markets to build competitive and sustainable businesses and contribute to reducing household poverty. Environment In accordance with the ADB’s Safeguard Policy Statement, the Project is classified as Category C. These are projects where activities are likely to have minimal or no adverse environmental impacts. An Environmental Assessment and Review Framework was prepared to; (i)describe the proposed activities to be financed under the Project; (ii) specify the requirements that will be followed in relation to project screening and categorization, environmental assessment including provisions for meaningful consultation with stakeholders and information disclosure requirements and, where applicable, safeguard and environmental criteria that are to be used in selecting subprojects and/or components; (iii) specify implementation procedures; (iv) specify monitoring and reporting requirements; and (v) describe the responsibilities of the clients and of ADB in relation to the preparation, implementation, and progress review of safeguard documents of subprojects1. The environmental impact of the activities in Output 3 were reviewed and assessed by the International Environment Safeguards Specialist (under OIDCI contract). An Environmental Assessment Report (Annex 1) of production processes for fruit jam, biscuit, soap and natural dye was conducted by the International Environment Specialist in compliance with ADB’s Safeguard Policy. Also included in this report are the findings of baseline survey as part of the social development activities. The baseline survey for the Project collected information from 18 target villages and four value chains in the last quarter of 2017. This survey was aligned to that schedule to produce a situation analysis for the four value chains. Considering the participants to the survey and their possible product affiliation, a combination of census approach (for bamboo, snack, and fruit jams) and random sampling (for weaving) was adopted. This process ended up with 229 treatment households, 69 control households; and 20 micro and small enterprises (MSEs) operated in the four value chains. The survey was conducted using the computer-assisted personal interviewing (CAPI) approach. Visits to all the four target townships were made in advance prior to data collection to facilitate logistic arrangements. Results of the baseline survey showed that all of the four value chains are well justified by its potential for being inclusive for women, especially the ethnic minority and poor women – who are the primary target beneficiaries of the EEPW-EWEC Project. In addition, all of these value chains have been in the target villages for generations and hence many villagers were most familiar with one of these four value chains selected by the Project for support. The Project environmental requirements comply with ADB safeguard policy (2009) and include: (i) environmental assessment, (ii) planning and managing impact mitigations, (iii) preparing

1 Environmental Assessment and Review Framework. November 2015. MYA: Economic Empowerment of the Poor andWomen in the East-West Economic Corridor. Prepared by the Ministry of Hotels and Tourism. Government of the Union of Myanmar. 3

environmental assessment reports, (iv) disclosing information and undertaking consultation, (v) establishing a grievance mechanism, and (vi) monitoring and reporting. The processing facilities for the production of fruit jam, biscuit, soap and natural dye were included in this Project with the support of local residents. Only one facility is been built in Chaungzone township up to December 2018 (for biscuits). The project plan to build the more facilities in the following locations: • Mudon for yarn dyeing and weaving (expected to start by January 2019); • Changzone for bamboo crafts (expected to start along II quarter 2018), and • Khaik Hto for biscuit and jam production & bamboo craft production (expected to start during the first and second quarter of 2019) In compliance with the requirements of ADB Safeguards Policy, four (4) Rapid Environmental Assessment (REA) have been prepared to determine the possible impacts of these production centers. Based on the REA, very minimal earth moving activities will be done in Naing Hlon and Tan Kon Tine (Mudon township) and therefore minimal air pollution impacts due to dust can occur. No water pollution, and solid waste generation will likely be minimal and manageable due to existing township system on waste management. These production and training centers will be made of light materials and will not involve use of heavy equipment and pollutive materials and chemicals. Solid waste generation in these temporary sites will likely be minimal and manageable due lesser number of people in the area during day time only, and the existing township system on waste management. All other parameters in the REA are not significant to cause negative impact on the environment. Most of the safeguards criteria have been complied by the Project. Overall, Output 3 of this Project has minimal environmental impacts due to small scale nature of production. However, when large-scale production will be required in the future, it is recommended that the process flow be reviewed again to determine the level and magnitude of environmental impacts and the mitigation measure that should go with large-scale production. Involuntary Resettlement and Indigenous People As indicated in the Project PAM, the safeguards requirements for Indigenous People and Involuntary resettlement are: 1. No civil works or infrastructure upgrading shall cause any IR and IP impacts. 2. Land acquisition will not cause: (i) Involuntary resettlement of the formal or informal land users, squatters or encroachers of the land, (ii) Dispossession of assets belonging to the ethnic minority and/or vulnerable groups, (iii) Significant loss of assets or source of income/ livelihood of the owner of the donated assets/lands. 3. When government land is being used, it has to confirm with the IR and IP screening checklist for the civil works or infrastructure upgrading to be eligible for grant financing, and 4. Under any circumstances, the grant fund must not be used for purchasing of land for implementation of civil works or infrastructure upgrading.

Next Safeguard Reporting Period For the next reporting period, an environmental compliance monitoring of the procedures during actual run of production for fruit jam, biscuits, soap and yarn dyeing should be conducted to assess real time inputs to the environment. The construction of the production/multipurpose centers in Nhaing Hlon and Tan Kon Tine should be reviewed in terms of construction impacts and actual mitigation measures. The contractor of the centers should prepare an environmental management plan to mitigate impacts on environment resulting from land preparation, earth moving, noise and dust, and traffic due to delivery of construction materials. An ocular inspection 4

in the construction sites should be done to determine if mitigation measures are fully implemented and that nearby residents are not affected by the construction activities. An environmental compliance monitoring of the bamboo training/multipurpose center will have to be conducted to determine if environmental mitigation measures are fully implemented and effective. The production process for bamboo craft should also be documented to determine red flags for mitigation. Finally, a documentation of poverty alleviation through income generation from the project should be prepared.

1. INTRODUCTION

1.1 General Information The Asian Development Bank (ADB) through a funding from Japan Fund for Poverty Reduction (JFPR), has provided support to the Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project (EEPW-EWECP) in Myanmar. A total budget of $3.45 million for the period 2017-2019 has been provided. The Project aims to support micro and small enterprise (MSE) development, and increased employment and economic opportunities for the poor and women selling crafts and local food to tourists and residents in the east-west economic corridor. The identified project locations are in the four townships of Chaungzone, Kyaik Hto, Mawlamyine, and Mudon, in Mon State, Myanmar. This project is an integrated approach to enable micro entrepreneurs to access technical training, skills in business management, appropriate technology, finance, and markets to build competitive and sustainable businesses and contribute to reducing household poverty. 1.2 Project Classification and Actions In accordance with the ADB’s Safeguard Policy Statement, the Project is classified as Category C. These are projects where activities are likely to have minimal or no adverse environmental impacts. However, in the event that the Project involves any environmental impacts, mitigation measures for any identified impacts will be included in the environmental assessment and review framework. The environmental impact of the activities in Output 3 were reviewed and assessed by the International Environment Safeguards Specialist (under OIDCI contract). The production processes were finalized by the National Food Processing Training Specialist and the National Handicraft Training Specialist, and the temporary processing facilities were also identified. Also included in this report are the findings of baseline survey as part of the social development activities. The Project environmental requirements comply with ADB safeguard policy (2009) and include: (i) assessing impacts, (ii) environmental planning and management, (iii) preparing environmental assessment reports, (iv) Information disclosure, (v) establishing a grievance mechanism, and (vi) monitoring and reporting. As indicated in the PAM, the safeguards requirements for Indigenous People and Involuntary resettlement are: 1. No civil works or infrastructure upgrading shall cause any IR and IP impacts. 2. Land acquisition will not cause: (i) Involuntary resettlement of the formal or informal land users, squatters or encroachers of the land, (ii) Dispossession of assets belonging to the ethnic minority and/or vulnerable groups, (iii) Significant loss of assets or source of income/ livelihood of the owner of the donated assets/lands. 3. When government land is being used, it has to confirm with the IR and IP screening checklist for the civil works or infrastructure upgrading to be eligible for grant financing, and 4. Under any circumstances, the grant fund must not be used for purchasing of land for implementation of civil works or infrastructure upgrading.

2. IMPLEMENTATION OF ENVIRONMENTAL SAFEGUARDS 2.1 Description of the Main Elements of the Environmental and Assessment and Review Framework (EARF) In accordance with the ADB’s Safeguard Policy Statement, the Project is classified as Category C. These are projects where activities are likely to have minimal or no adverse environmental impacts. An Environmental Assessment and Review Framework was prepared to; (i)describe the proposed activities to be financed under the Project; (ii) specify the requirements that will be followed in relation to project screening and categorization, environmental assessment including provisions for meaningful consultation with stakeholders and information disclosure requirements and, where applicable, safeguard and environmental criteria that are to be used in selecting subprojects and/or components; (iii) specify implementation procedures; (iv) specify monitoring and reporting requirements; and (v) describe the responsibilities of the clients and of ADB in relation to the preparation, implementation, and progress review of safeguard documents of subprojects2. Environmental Criteria of Subproject Selection As a general rule, subproject activities unlikely to have adverse and irreversible impacts shall be prioritized. Subproject activities that will be implemented shall meet the following criteria: i. Conforms to ADB’s environmental Category C. ii. Comply with all requirements of relevant national and local laws, rules, and guidelines iii. Does not involve any involuntary resettlement elements (of any scale/magnitude). iv. Does not directly or indirectly affect the dignity, human rights, livelihood, or culture of any one indigenous person. v. Does not inflict damage to any physical cultural resource of local, provincial, national and/or international level. vi. Must be based on the perceived needs of the residents, community leaders and committees in the areas of sanitation, drainage, access, solid waste management and other potential environmental improvements that may be identified through participatory planning.

Screening and Categorization As soon as sufficient information is available, PMU will prepare a Simplified Environmental Management Matrix for subproject activities to manage environmental impacts especially during construction.

Scoping and Preparation for Environmental Assessment Prior to conducting the environmental assessment, the PMU will obtain confirmation of environmental safeguard requirement from the ADB and possibly other specific requirements for the environmental assessment, such as monitoring tasks, scope of public consultation.

Preparation of Environmental Reports Appropriate Environmental Assessment Report/s (EAR) and EMP/s will be prepared by the PMU and/or implementation consultants. The format shall be in accordance with Myanmar and ADB standards and formats.

2 Environmental Assessment and Review Framework. November 2015. MYA: Economic Empowerment of the Poor andWomen in the East-West Economic Corridor. Prepared by the Ministry of Hotels and Tourism. Government of the Union of Myanmar. 7

2.2 Project description of the subprojects screened and assessed under the EARF Product summary table Product Traditional Biscuits (“Kao Moung”) Township Chaungzone township Village (s) Kwain Yeik Households 10 Processing facility available Yes Processing facility needed Yes Land owned by government No Land owned by beneficiaries Yes Number of varieties of product produced 6 Product tested and feedback collected Yes Packaging required Yes Packaging designed and available Yes Equipment and procurement Finalized Sales started Yes Product available in Yangon and shops No Estimated date for start reaching out June 2019 markets Potential reaching out national market Yes Potential reaching out international markets Yes Testing and prototyping starting date December 2017 Product summary table Product Fruit Jam Township Kyiuakhto and Chaungzone Village (s) Kwian Yeik and Mamon Chaung Households 14 Processing facility available No Processing facility needed Yes Land owned by government No Land owned by beneficiaries Yes Number of varieties of product produced 3 (Pinneapple, grapefruit and starfruit) Product tested and feedback collected Yes Packaging required Yes Packaging designed and available Yes Equipment and procurement On going Sales started No (some samples during SME fair Dec 2018) Product available in Yangon and shops No Estimated date for start reaching out July 2019 markets Potential reaching out national market Yes Potential reaching out international markets No Testing and prototyping starting date II quarter 2018 Product summary table Product Natural Soap Township Chaungzone Village (s) Pham Pa Households 10

Processing facility available No Processing facility needed Yes Land owned by government No Land owned by beneficiaries Yes Number of varieties of product produced 6 Product tested and feedback collected Yes Packaging required Yes Packaging designed and available Yes Equipment and procurement On going Sales started Yes Product available in Yangon and shops Yes Estimated date for start reaching out December 2017 markets Potential reaching out national market Yes Potential reaching out international markets Yes Testing and prototyping starting date December 2017 Product summary table Product Weaving and Natural Dyeing Township Mudon Village (s) Theingone and Nainlone Households 33 Processing facility available No Processing facility needed Yes Proposed land owned by government No Proposed land owned by beneficiaries Yes Number of varieties of product produced 7 patters (different natural colors each) Product tested and feedback collected Yes Packaging required Yes Packaging designed and available Yes Equipment and procurement Yes Sales started Yes Product available in Yangon and shops Yes Estimated date for start reaching out December 2017 markets Potential reaching out national market Yes Potential reaching out international markets Yes Testing and prototyping starting date December 2017

2.3 Summary tables and screenings for each subproject (IP and IR)

Safeguards requirements for Indigenous People and Involuntary resettlement Summary table / Subproject: Product Fruit Jam 1. No civil works or infrastructure upgrading shall Until 31.12.2018. No cause any IR and IP impacts. government land was used. No processing facility was built for this subproject - product. No civil works were initiated for this subproject – specific product. 2. Land acquisition (i) Involuntary resettlement of Not applicable during this period will not cause: the formal or informal land users, squatters or encroachers of the land, (ii) Dispossession of assets Not applicable during this period belonging to the ethnic minority and/ or vulnerable groups (iii) Significant loss of assets Not applicable during this period or source of income/ livelihood of the owner of the donated assets/ lands. 3. When government land is being used, it has to Until 31.12.2018 No government confirm with the IR and IP screening checklist for land was used. No processing the civil works or infrastructure upgrading to be facility was built. No civil works eligible for grant financing, and were initiated for this subproject – specific product. 4. Under any circumstances, the grant fund must Until 31.12.2018. No not be used for purchasing of land for government land was used. No implementation of civil works or infrastructure processing facility was built. No upgrading. civil works were initiated for this subproject – specific product.

Safeguards requirements for Indigenous People and Involuntary resettlement Summary table / Subproject: Product Biscuits 1. No civil works or infrastructure upgrading shall No IR and IP were caused by cause any IR and IP impacts. the construction of the processing facility in Kwain Yeik village. 2. Land acquisition (i) Involuntary resettlement of No land acquisition took place will not cause: the formal or informal land for the construction of the users, squatters or processing facility. :and was encroachers of the land, shared free of charge by one of the beneficiaries to the group of producers. (English translation of the land sharing document signed by all group members is included as Annex 4) (ii) Dispossession of assets No dispossession of assets belonging to the ethnic took place during the minority and/or vulnerable construction of the processing groups facility. (iii) Significant loss of assets or No significant loss of assets or source of income/ livelihood of source of income were the owner of the donated identified. assets/lands.

3. When government land is being used, it has to No government land was used. confirm with the IR and IP screening checklist for The land was owned by one of the civil works or infrastructure upgrading to be the project beneficiaries eligible for grant financing, and 4. Under any circumstances, the grant fund must not The land was not purchased by be used for purchasing of land for implementation the project. of civil works or infrastructure upgrading.

Safeguards requirements for Indigenous People and Involuntary resettlement Summary table / Subproject: Product Soap 1. No civil works or infrastructure upgrading shall Until 31.12.2018. No cause any IR and IP impacts. government land was used. No processing facility was built for this subproject - product. No civil works were initiated for this subproject – specific product. 2. Land acquisition (i) Involuntary resettlement of Land acquisition will not cause: will not cause: the formal or informal land users, squatters or encroachers of the land, (ii) Dispossession of assets belonging to the ethnic minority and/ or vulnerable groups (iii) Significant loss of assets or source of income/ livelihood of the owner of the donated assets/ lands. 3. When government land is being used, it has to Until 31.12.2018 No government confirm with the IR and IP screening checklist for land was used. No processing the civil works or infrastructure upgrading to be facility was built. No civil works eligible for grant financing, and were initiated for this subproject – specific product. 4. Under any circumstances, the grant fund must Until 31.12.2018. No not be used for purchasing of land for government land was used. No implementation of civil works or infrastructure processing facility was built. No upgrading. civil works were initiated for this subproject – specific product.

Safeguards requirements for Indigenous People and Involuntary resettlement Summary table / Subproject: Weaving & Natural Dye 1. No civil works or infrastructure upgrading shall Until 31.12.2018. No cause any IR and IP impacts. government land was used. No processing facility was built for this subproject - product. No civil works were initiated for this subproject – specific product. 2. Land acquisition (i) Involuntary resettlement of Land acquisition will not cause: will not cause: the formal or informal land users, squatters or encroachers of the land, (ii) Dispossession of assets belonging to the ethnic minority and/ or vulnerable groups (iii) Significant loss of assets or source of income/

livelihood of the owner of the donated assets/ lands. 5. When government land is being used, it has to Until 31.12.2018 No government confirm with the IR and IP screening checklist for land was used. No processing the civil works or infrastructure upgrading to be facility was built. No civil works eligible for grant financing, and were initiated for this subproject – specific product. 6. Under any circumstances, the grant fund must Until 31.12.2018. No not be used for purchasing of land for government land was used. No implementation of civil works or infrastructure processing facility was built. No upgrading. civil works were initiated for this subproject – specific product.

2.4 Environmental Assessment report of Production Processes for Fruit Jam, Biscuit, Soap and Natural Dye

With the deployment of the International Environment Specialist in October 2018, the immediate move was to determine the sufficiency of ADB’s Safeguard Policy on Project Classification. This Project was classified as Category C because the project activities have minimal or no adverse environmental impacts. However, the ADB Safeguard Policy also stipulates that in the event that the Project involves environmental impacts, mitigation measures will have to be incorporated in the assessment and review framework.

To be able to identify the environmental impacts of production processes for fruit jam, biscuit, soap and natural dye, the International Environment Specialist conducted meetings with the National Food Processing Training Specialist and the National Handicraft Training Specialist to determine and map out the production processes. A process diagram for each product has been generated and “red flags” to indicate possible environmental concerns were identified. These process flow diagrams provided a clearer view for the assessment of environmental impacts of the project documented in the Environmental Assessment Report presented in ANNEX 1. The review of production processes for the identified activities in this project showed that the environmental impacts of fruit jam production are minimal, not significant and manageable. The National Food Processing Training Specialist should be given credit for good knowledge on food safety in the production area. The small scale biscuit production was noted to have minimal significant environmental impacts. However, there are occupational risks associated with it such as grinding of ordinary rice, use of hot plates for cooking/moulding the biscuits, food safety during the production process and food poisoning when expiry dates of the biscuits are not labelled properly. Women workers for this group should be informed on the risks and hazards to consider for their own safety. Production workers should develop a monitoring plan such as “first in first out” to ensure that chronological production dates are sent to market and sold accordingly. Water pollution and occupational hazards are the primary issues in dye production on large scale. The use of water for dyeing and rinsing yarns to fix colours, generate a big amount of coloured water that can result to negative impacts in receiving canals/rivers. Water treatment systems/pollution control mechanisms should be in place to lessen impact on the environment. The impacts of wastewater generation in small scale dye production can be managed. It is recommended that workers should be made aware of these environmental impacts and occupational hazards. Small scale production of natural soap can have minimal environmental impacts when water use can be limited. Occupational hazards can also be mitigated through general awareness training of the workers.

2.5 Rapid Environmental Assessment (REA) of Proposed Production/Training Centers The support facilities for the production of fruit jam, biscuit, soap and natural dye were included in this Project with the support of local residents. The production centers will be located in: • Mudon – Naing Hlon and Tan Kon Tine Production Centers for dye production, yarn dyeing and weaving, and sewing & tailoring; • Changzone for biscuit and jam production (only one finalized up to 31.12.2019), and bamboo craft production • Khaik Hto for Dried fruit & Fruit Jam and another for bamboo craft production In compliance with the requirements of ADB Safeguards Policy, Four (4) Rapid Environmental Assessment (REA) have been prepared to determine the possible impacts of these production centers. ANNEX 2 shows these documents. Based on the REA, very minimal earth moving activities will be done in Naing Hlon and Tan Kon Tine and therefore minimal air pollution impacts due to dust can occur. No water pollution, and solid waste generation will likely be minimal and manageable due to existing township system on waste management. These production and training centers will be made of light materials and will not involve use of heavy equipment and pollutive materials and chemicals. Solid waste generation in these temporary sites will likely be minimal and manageable due lesser number of people in the area during day time only, and the existing township system on waste management. All other parameters in the REA are not significant to cause negative impact on the environment. It is recommended that contractors for the production/training centers be guided by mitigation measures for construction provided to the National Civil Engineer.

2.6 COMPLIANCE WITH ENVIRONMENT AND SOCIAL SAFEGUARDS 2.6.1 Screening of Environmental Impacts Although the project has been classified under Category C, further assessment of activities in Output 3 were observed to possibly produce negative environmental impacts. However, being small scale activities, the impacts are very minimal and can be mitigated.

2.6.2 Mitigation Measures A number of mitigation measures are currently in place in terms of township measures on solid waste management and pollution prevention. There are no bodies of water adjacent or near the identified production/multipurpose center. For the construction of the production/ multipurpose centers, the National Civil Engineer of the project has been provided with guidelines and mitigation measures for construction, as well as environment, health and safety guidelines of IFC/World Bank. This will more or less help in the planning of construction activities. 2.6.3 Consultation with Local People During the conduct of Baseline Study for this Project, possible beneficiaries have been identified and informed for inclusion in the Project. At the same time, consultation with local people have been done. Project awareness session (consultations) took place in each township, namely: Chaungzone, Mawlamyine, Mudon and Kyaikhto. They started since the very beginning of the project, (including the design phase) and during the implementation at least in quarterly basis, the main of these consultations was identifying new villages and potential beneficiaries for our products. The main result of the consultation was the list of potential beneficiaries who might attend the first training sessions for the different products identified in the value chain assessment.

A consultation process took place in Mawlamyine during 2018 for the discussion about the marketplace in Mawlamyine. The result was the list of interests, recommendations and comments from the local population in Mawlamyine for the Project Market place

2.6.4 Disclosure of Information The Project Management Unit (PMU) provides guidelines to Project Implementation Unit (PIU) on information dissemination. The PIU is in charge of information dissemination in the Project. The project has finished the development of a website and all the latest news on the project including procurement and reports will be disclosed there. 2.6.5 Environmental Management Plan (EMP) Based on Output 3 of this Project, a multipurpose center will be constructed as training center/showroom. As this facility has not been finalized in terms of siting and construction, an environmental management plan cannot be prepared at the moment. For the proposed production facilities, a rapid environmental assessment has been conducted and no significant environmental impacts have been identified. For the existing facilities for jam production (Chaungzone) and bamboo processing/training center in Khaik Hto, environmental management systems are already in place.

2.6.6 Pollution Prevention A review of the production process for fruit jam, natural soap and dye, and yarn dyeing showed that these are small scale production activities and not likely to cause significant environmental impact. Pollution prevention measures such as solid waste disposal and township drainage systems are already in place. The project delivered eight Natural Dyeing training module since October 2017, in Theingone and Nay Lone villages in Mudon township. All raw material used in the process of "natural Dyeing" are 100% natural plants, fruits, bark, and leaves, has minimal environmental impact at the village and household levels. The reason to use Natural dye pigments to dye the cotton used in our Made in Mon weaving products is to minimize any negative impact in the environment. At this stage of the project, the amount of water used for the dyeing process is minimal (no more than 20 liters per vat). A proper water treatment process will be implemented when the demand and dimension of the activity increase the number of dyeing sessions and the volume of wastewater. 2.6.7 Occupational Health and Safety There are identified occupational and safety hazards in fruit jam, soap and dye production as well as bamboo furniture production. However, these hazards are very minimal and can be mitigated through awareness training for the workers. All the groups of producer related with food processed products have received training on food safety, hygiene. Since 2017, The project is delivering training related to Health, hygiene and Safety, for all the project activities related to the production of made in Mon Products, as follows: • Food Safety and Hygiene Training to Night Market Shops Owners, October 2017, Mawlamayine. • Food safety, October 2017, Kwaiwn Yeik, • Food safety, October 2017, Iwarlut, • Basic Hygiene and Personal Grooming Training, June 1018, Chaungzone. • Personal Hygiene and Food Safety, February 2019, Kyaikhto

2.6.8 Impacts on Physical, Cultural Resources

The identified sites for production/multipurpose centers are all located in established communities/townships. As such there will be minimal environmental impacts on physical and cultural resources. In fact Mon culture is being promoted through packaging and product design for the woven materials. During construction, the impacts on physical character of the areas can be mitigated and return to normal conditions when the production/multipurpose centers are fully operational.

2.6.9 Grievance Redress Mechanism A grievance redress mechanism is being implemented by PIU. In this system all complaints are directed to PIU, Deputy Project Manager who analyses the issue and provide possible resolution.

In the safeguards monitoring mission in the annex 2 it is mentioned that is a complaint. Further analysis on this document indicates that the complaint letter does not have any stamp of reception of the letter, neither any date to try to verify the document and the follow up on the formal response of the government office shared by the farmer during the mission. Any project activities were implemented in the mentioned land. The project does not plan to implement any type of activity in this land.

3. IMPLEMENTATION OF SOCIAL SAFEGUARDS

3.1 Objectives and Methodology of the Baseline Survey (BLS) The baseline survey for the Projects aims to collect information from 18 target villages and four value chains in its early project cycle with activities taken place in the last quarter of 2017. This survey was aligned to that schedule to produce a situation analysis for the four value chains. Considering the participants to the survey and their possible product affiliation, a combination of census approach (for bamboo, snack, and fruit jams) and random sampling (for weaving) was adopted. This process ended up with 229 treatment households, 69 control households; and 20 micro and small enterprises (MSEs) operated in the four value chains. The survey was conducted using the computer-assisted personal interviewing (CAPI) approach. Accordingly, the team of six enumerators led by one team leader and survey coordinators (both online and onsite) conducted the survey using tablet computers. Before going the field, the team was trained with necessary survey skills, briefed by the Project Management on the basis and progress to date. Official access to the villages and households were arranged by the Ministry of Hotel and Tourism (MOHT) and its affiliate in Mon State. Visits to all the four target townships were made in advance prior to data collection to facilitate logistic arrangements. 3.2 Basic Profiles of the Value Chain Households Basic household characteristics. The target households in the selected villages had an average size of 4.9, of which around a half was at the working age and 55.7 percent was female. Household heads and their spouses had average ages of 51.2 and 48 years old respectively – which signals ‘ageing’ rural villages where the young found opportunities elsewhere. Rate of illiteracy was found to be relatively high (13 percent for heads and 10.6 percent for their spouses). Fruit jams households were reported to be among the best educated in terms of their educational attainment and these were also the more better-off compared to those in other value chains. Non-agricultural self-employment was the major source of income for heads and their spouses. Overall engagement in the value chains. The households in the BLS were engaged in the selected value chains for an average of 19 years and many of them have been in the business for generations. Being traditional occupations in the target villages, the number of households engaged in these value chains was however limited at around two percent only. On average, the number of labour engaged in the value chains was 1.8 and 80% of the total work force in these value chains were female adults. Income generation from these value chain was reported to be a major income source (i.e. accounts for more than a half of total income) for more than a half of 15

total households. However, there has been little dynamics across the value chains with more than a half of the total reported no changes in income from the activities and many of them did not show optimism o income growth in the coming years. Gender roles and empowerment. Gender roles in this BLS are captured by roles of women in income generation, it was found that for 75.4 percent of the households reported that both male and female shared the role of earning income. This shows a positive signal of roles of women in the target areas. For the remaining 24.6 percent of the households, most of them reported that female labour played a main role in earning HH income. In addition, gender empowerment was captured by relative influence to decision making process. The results indicate that for all the three important spending decisions in the households (i.e. spending decision in livelihood activities such as to buy inputs etc., decision to buy household durable assets, and decision for savings), women were more often found to be in decisive positions compared to men. At the community level, female seems to have a fair empowerment by their attendance to village meetings – which was a proxy for empowerment at community level. 3.3 The Weaving Value Chain Weaving input suppliers. Limited diversification in terms of inputs supplied is first noted. Out of the weaving input suppliers found in the villages, 60 percent has supplied only one type of inputs. All of these input suppliers were of small scale with average labour (all were household members) of 1.7 persons; none of the input suppliers experienced any loans, either from formal or informal channels. In addition, half of these input suppliers also supplied to weavers in other nearby villages and 60 percent of the selling was paid in cash and lump sum. Notably, the majority of input suppliers reported increased sales in recent years and hence few intended to expand their business. Weavers. Sub-contracting was the main modality for weaving with 80.7 percent of weavers being sub-contractors. Product portfolio was lack of diversification with up to 83.7 percent of the weavers only produced one products, the remaining 16.4 percent weaved between two to three products and none of the weavers produced more than three products. Longyi was found to be the most popular product with 57.7 percent of weavers. Under sub-contracting arrangements, main types of support from the contractors to sub-contracting weavers were looms (to 66.7 percent of sub-contractors), raw materials (made available to all sub-contractors), and design (to 77.4 percent of sub-contractors). Notably, technical training support was found to be very limited. After weaving, 95 percent of the sub-contractors sold their products to the contractors and 91.7 percent received the payment in terms of a fixed sub-contracting fee per each product unit. It is interesting to note that 85.7 percent of the weavers considered this sub-contracting fee was a fair payment to their weaving. Notably, natural dyeing was not found in the target villages. Profitability from sub-contracting was low and this was a main reason why the younger generations were no longer interested in traditional weaving. Switching to other income generation activities was not an option for most weavers for many reasons. First, almost all of weavers have started their weaving in their early ages and hence did not diversify their skills. Second, after being engaged in weaving for generations, at their middle and old ages, it is almost impossible that they could change to other types of income generation activities. In this context, nearly one third of the weavers expressed their intention to extend weaving activities. Of difficulties in expanding business, lack of skilled labour was noted by 65.4 percent of weavers. Ranked after ‘lack of skilled labour,’ ‘lack of capital’ was reported as a difficulty by 36.5 percent of weavers and the corresponding figure for ‘lack of market access’ was 21.2 percent. When asked about feedback to potential types of support, technical training was found as the most useful one (selected by 47.1 percent of weavers). In addition, training on marketing, household business management was selected by 38.5 as the type of support that would be useful for

expanding weaving business. Notably, 38.5 percent of weavers felt that they need support in product designs. Weaving traders. The traders operate mainly in small and medium scale with average 2.7 labour (all household labour). The majority of traders only bought weaving products from the weavers in the same village and all of the weavers were said to be frequent sellers. In fact, there was a small number of weaving traders in the target villages and they usually played a contractor role. Only 28.6 percent of the traders actually did further value added activities such as branding and packaging. Instead, more than a half of the traders sold the products collected to other traders and one firth sold to shop owners, who might then use their brands and/or do additional packaging for the products, which could be high value added. Profitability in trading was found higher than weaving and instead of increasing competition, nearly 43 percent of the traders has experienced increases in their sales in recent years and hence 42.8 percent of them intended to expand their trading business. Of the many potential difficulties in expanding business, none were found to be major obstacles. Among possible support listed out in the BLS questionnaire, the traders picked up technical training for weavers and training on marketing, business management as most useful support for expanding their business. Weaving MSEs. There were nine weaving MSEs interviewed in this BLS (five in Mudon and 4 in Mawlamyine township). Of out these MSEs, the two largest MSEs employed 70 weavers, the other MSEs were found with small or micro scale. The weaving MSEs have engaged in the weaving for generations, all started their business as small weaving households. The majority of the hired workers were from the same villages of the MSEs; more than 95 percent of the hired weavers were women. Longyi appeared to be most popular products. Ranking after longyi, scarf, clothes, blankets, and bags were observed. These MSEs have their own designs, which were inherited from their parents. One suggestion found across all MSEs was that weaving business could be stable in the few coming years but the future would be uncertain due to many factors. Notably, weaving is no longer the choice of young people and current weavers are aging. There has been increasing competition, especially from industrial machinery weaving. Packaging and branding were almost neglected even by the largest MSEs found. All of the MSE owners could recalled natural dyeing but this practice was no longer in place due to lack of market for this product. Access to credits or other support either from government agencies or development partners were found to be very limited. 3.4 The Bamboo Value Chain Bamboo input suppliers. There is a limited number of bamboo input suppliers found in the target villages. All input suppliers found only provided one type of inputs (which were either raw canes or trips); they were of small scales (due to limited number of producers and availability of input suppliers outside the target villages), and none of the suppliers have borrowed to operate their businesses. Supplying for a relatively small number of bamboo producers in the villages, only one third of the input suppliers reported increased sales in recent years. These are the ones that intended to extend their business. Assuming to expand business, out of seven types of potential difficulties, only ‘lack of capital’ and ‘difficulty to penetrate into new markets’ were selected by 67 percent and 33 percent, respectively; the others were not considered as obstacles. Out of nine types of supports, the suppliers only selected two, including (i) training on marketing and negotiation; (ii) improved access to finance. Bamboo producers. Product portfolio was found very basic in designs, techniques, and lack of diversification. Most popular products were toys (e.g. bamboo guns, cars) with 43.3 percent of the households produced these products; mats and baskets of different types were produced by 26.7 percent of the bamboo producers. These products are marketable to the locals in the rural villages but unlikely to find their way to high value added segments. On average, bamboo producers involved 2.1 household labour (around half was female); 20 percent of them hired

additional workers (average size of 1.2 hired labour) on casual basis; 73.3 percent of the bamboo producers used their own designs; and 53.5 percent borrowed from their friends or relatives to operate their activities – which is considerably higher compared to indebtedness in other value chains. Profitability after subtracting labour cost was reported to be low but around 40 percent of the producers intended to expand their business. Assuming to expand the business, the bamboo producers further pointed out that lack of capital and skills would be the two major constraints for their business expansion. Facing these difficulties, the bamboo producers suggested that support in access to credit, training on technical skills, training on management are the key areas that support would be most needed. Bamboo traders. Bamboo toys and baskets of different types were the most popular products traded. It is noted that there were no complex and high value bamboo products (such as décor items, chairs etc. that are usually displayed at big shops along the road from Kyaikhto to Mawlamyine township). Bamboo traders worked with an average of two household labour and all of them collected products from few bamboo producers in the same villages. None of them provided credit to bamboo producers and there were neither no contract arrangements, and all payments were made in lump sum. Only one third of the bamboo traders engaged in packaging and branding; none of them have been trained on marketing or business management. Profitability in bamboo trading was reported to be relatively low (with all experienced a profitability of less than 20 percent). In addition, none of them has experienced increases in sales in recent years. Given this, there was one third of the bamboo traders intended to expand their business. Among many potential difficulties that one trader might face when expanding the business, the bamboo traders only selected ‘limited market demand’ and ‘high competition’ (out of seven types of potential difficulties) as the main difficulties for business expansion. Bamboo MSEs. Many bamboo producers have been in the business for an average of two decades but very few of them have grown into MSEs. There were five bamboo MSEs found and interviewed in the target villages, of which two hired labour, the other three operated in a scale that was larger than the average of other bamboo producers. Different types of hats (in Chaung Zon), toys (mainly bamboo cars, sticks, and guns), and in some cases bamboo wall and mats (in Kyaikhto) were the bamboo products observed. Bamboo MSEs were said to have their own designs but all of these products are very simple in design and do not require any complicated machine or hand tools for processing. There were no signs of packaging or branding. Therefore, the products are only for the local markets. There were many other bamboo products produced outside the target villages such as chairs, beds, and especially souvenirs and décor items. However, these requires more complicated production skills and sizable investment in machinery. Therefore, willingness to pursue such upgradation was found to be limited. Similar to the case for weaving MSEs, access to credit as well as other support were found to be limited. Access to other policy support was not observed for any of the MSEs interviewed. 3.5 The Snack Value Chain Snack input suppliers. It is first noted a certain level of diversification with 42.9 percent of the input suppliers supplied between two to three inputs and about one third supplied more than three types. The snack input suppliers operated with an average of 1.7 household labour; borrowing to do this trading business observed in only 14 percent of the snack input suppliers. They only supplied for snack producers in the same villages and 85.7 percent of input suppliers required lump sum payments when selling their inputs; very few of the input suppliers had prior contracts (of any forms) with buyers. It was reported that 28.6 percent of the input suppliers reported increased sales in recent years, and this was the ones who intended to expand their business. Assuming to expand the business, the input suppliers considered ‘lack of capital’, ‘limited local market demand’, ‘difficult to penetrate new market’ were the main difficulties. In terms of potential support, out of nine potential types of supports, training (both technical and marketing etc.), improved access to finance were most selected by the input suppliers. 18

Snack producers. All of snack producers found in the target villages focused on one kind of snack. On average, a snack producer involves 2.2 household labour (of which female accounted for 68 percent). There was 13.3 percent of producers hired labour outside their households with an average number of 7.8, of which female workers contributed 67 percent. As most of the snack producers have engaged in this activity for many years, the producers were found with experiences. Similar to other value chains, borrowing was not prevailing for the snack producers. One important feature of snack production is phytosanitation conditions and quality certification that affects food safety. In this regard, only 8.9 percent of the producers had registered their production with the authorities and/or Food and Drug Administration of Myanmar (FDA). With regard to quality certification, only 8.9 percent of the producers revealed that they had registered for some (local) quality certification. A 82.2 percent of the snack producers reported that they did packing their products. Most popular packaging materials were nylon bags and used carton boxes. The majority of the snack producers reported a profit level of less than 20 percent; if household labour is internalized as a cost, then the profitability of snack producing would be lower. Given this level of profitability, less than one third of the total producers intended to expand their production. For expanding business, ‘lack of capital’ appeared to be the most difficult challenge for 55.6 percent of the snack producers. Beside this difficulty, ‘lack of technical skills for production’, ‘lack of skilled labour’, ‘high competition’, ‘lack of materials’ were also found as difficulties for between one third to 42.2 percent of the snack producers. Notably, ‘Low awareness on phytosanitation, food safety, and quality certification’, ‘No or low price premium for quality certified products’ were selected by very few producers. Given these challenges, the snack producers considered that potential support on ‘improved access to finance’ and ‘trainings on technical skills’ would be important for expanding the business. Support in quality management and phytosanitation training was perceived as useful by only 6.7 percent of the producers. This partly reflects low awareness of phytosanitation, food safety, and quality certification. Snack traders. All of them traded only one products for their trading business. The majority of them traded thin cracker while some traded ‘other snacks’. These traders sourced from snack producers in their own villages and a half usually collected from some frequent producers. It was reported that 33.3 percent of traders provided credit to producers from whom they would then collect the products; none of them have ever been trained on marketing, business management. Notably, none of them did any additional packaging or branding for snack products. Increasing competition from industrial confectionary manufacturers was said by the snack value chain households as a key factor that made it more difficult for those in the local snack value chain. For the traders, none of them has experienced increases in sales in recent years. As a consequence, there was very few to intend to expand their business. Snack MSEs. There were five snack MSEs found and interviewed in the target villages and they all hired labour outside households (between two to 20 hired labour). Only two of the MSEs interviewed managed to make significant investment in the business. They produced a relatively sophisticated product portfolio (such as butter cakes, cookies, assorted cakes, pudding etc.), which could be marketable for sophisticated customers. However, rivalry from big confectionary manufacturer was growing in recent years and these MSEs had encountered difficulties. For the others MSEs, though they have been in business for two decades, there have been very little dynamics. They produced simple products such as fried crepes, thin crackers and these could only be sold for the local market of the rural villages. It does not seems that these MSEs would be willing and able to upgrade to more sophisticated products as the two MSEs above. Food safety and phytosanitation conditions were found to be an issues and if it is to upgrade the snack value chain to higher value added stages certifications of matching food safety and phytosanitation requirements would be important. Notably, none of them has invested efforts 19

and resources for packaging and branding for their products. Even the two largest MSEs found in the target villages, awareness in this regard was found to be limited. Similar to the MSEs in other value chains interviewed, access to credits as well as other support were found to be limited. 3.6 The Fruit Jams Value Chain Fruit jams producers. As the number of input supplier and traders was limited, only the findings on jams producers were discussed in this report. It is first noted that the jams producers were more diversified than all other producers in the four value chains selected by the EEPW-EWEC Project (63.2 percent of the jams producers made more than three types of jams). Most of the jams producers operated in relatively small scale with an average of 2.1 household labour (with female accounted for more than 76 percent). There were few households who also hired workers for jams production (this accounted for 10.2 percent) and these households operated at considerably larger scales compared to the others. Jams producers experienced a highest level of indebtedness with 42 percent of them had borrowed from different sources (compared to producers in the other value chains). In terms of how jams are made, 94.7 percent of the jams producers revealed that they had used or developed their own recipes. It was reported that the jams producers in the target villages exhibited a low awareness of and compliance to regulations related to phytosanitation and quality management (only 26.3 percent registered their production to the authorities or FDA while 21.1 percent registered for some quality certification processes. Interestingly, 94.7 percent of the jams producers were found with their own brand names; nearly a half of these producers had registered their brand names with the authorities. However, these brands were usually in the form of a small piece of paper with names of the owner and telephone number only. In addition, all jams producers did some simple packaging for their finished products, either in plastic cans or nylon boxes. Profitability was however low and hence less than one third of the jams producers intended to start their business. Out of the potential difficulties when expanding business, ‘lack of capital’ ‘lack of skilled labour’, ‘lack of technical skills for production’ were also perceived as most difficult. Notably, ‘Low awareness on phytosanitation, food safety, and quality certification’, ‘No or low price premium for quality certified products’ were not considered as an obstacles. In this context, ‘trainings on technical skills’ and ‘improved access to credit’ were found as the potential types of support that were most appreciated. Fruit jams MSEs. Fruit jams were traditional occupation of the five MSEs found and interviewed with the most experienced one engaged in fruit jams since 1978; other two established in the 1980s and the two remaining MSEs were in the business for more than 10 years. All of these MSEs produce a largely similar portfolio of different types of fruit jams. Food safety and phytosanitation were said to be increasingly an issue that needs timely interventions. At this stage, awareness of these issues was relatively poor. The current portfolio of fruit jams is probably suitable to the locals only. For more sophisticated customers, putting less sugar or sweetener in ingredient mix, certifications of matching food safety and phytosanitation requirements, investment in packaging and branding are needed. This would require some radical changes in mindset and investment of the MSEs interviewed. Similar to the MSEs in other value chains interviewed, access to credits as well as other support initiatives were found to be limited; having support from public agencies was not found. 3.7 Control Households At the time of the survey, 36 percent of the control households did not show any interests in the four selected value chains of the EEPW-EWEC Project. For 64 percent of the control households who expressed some levels of interest, bamboo was selected by 23.2 percent; the corresponding figures for weaving and snacks were 17.5 percent and 15.9 percent respectively; while fruit jams were least interested by these control households in the target villages.

For those who are not interested in any of the four value chains, they were asked to elaborate the reasons of not having these interests. Of the four reasons listed in the BLS questionnaire, ‘Potential income from this value chain is not attractive enough’ and ‘Feel comfortable with the current income-generation activities’ were agreed by the control households as the reasons. With these two reasons, encouraging some of these control households to participate in the value chains would be quite difficult. ‘Know nothing about this activity’ and ‘there are bad examples (for instance of getting lost when investing) were found moderately important reasons. For the control households who were found interested in the value chains but had not engaged in any stages, they were asked a multiple choice question on the reasons. Of 11 reasons listed in the question, ‘lack of capital’ was found to be an important reason and agreed by many control households. Ranking after this reason, ‘lack of labour’ and ‘Have some knowledge and resources but don’t know how to start’ were found moderately important reasons. Most of the control households expressed that they would need support to have a clear understanding and confirmation on the market potential in order to become interested or engage in these value chains. Beside this, ‘improved access to finance’ and ‘access to business development services’ such as such as coaching/advice from relevant experts/lead farmers were also found as important reasons for the control households. Ranking after these factors, ‘Improved awareness/understanding of technical requirement’, ‘Having exposure to successful cases (e.g. lead farmers)’, and ‘To establish the work in common interest groups’ were found as moderately important support for the control households to become interested or engage in the value chains. With exception of ‘improved access to finance’, all of these types of potential support are related to exposing the control households to information, showcase, technical knowledge, or some risk-sharing arrangements such as working in common interest groups. 3.8 Conclusion and Recommendations on the Baseline Survey Across all the value chains, general remarks could be highlighted below. a. All of the four value chains are well justified by its potential for being inclusive for women, especially the ethnic minority and poor women – who are the primary target beneficiaries of the EEPW-EWEC Project. In addition, all of these value chains have been in the target villages for generations and hence many villagers were most familiar with one of these four value chains selected by the Project for support; b. Thought the value chains were in places for decades, it was not encouraging to find that there has been very little dynamics, innovations, and changes in these value chains. After decades, these value chains remain very basic and still at the early stages of the value chain development. Therefore, the room for future upgrading the value chains should have been potentially large; c. The current products portfolios of all the four value chains are suitable mainly for the locals but these are unlikely to reach more sophisticated and high markets due to simple design, poor or fair quality, no adequate investments in branding and packaging, and for snack and jams in particular, poor awareness and enforcement of food safety and phytosanitation requirements; d. Access to credit, other public policies and business development services were very limited. Though there was willingness to change observed for a sizable proportion of the producers and other primary actors across these value chains, there was clearly lack of an enabling environment for (pro-poor) value chain developments. A lot of policy making and dialogue would be required in order to lay the background for an investment climate to attract private sector investment;

e. The private sector in these value chains was found to be very weak both in terms of quantity and ‘quality’. A census approach was applied but limited numbers of MSEs were found in the target villages. The majority of them operated as micro household businesses. Attracting private sector investment would be an option but this requires efforts to build up an enabling environment; f. There were market niches for the upgraded products of these value chains and these niches could be higher value addded markets. However, the current capability of the primary actors in the value chains to target these niches is quite limited and there is clearly a lot to be done for enhancing capacity and linkages across different actors in the value chains. Some recommendations. This context is very challenging for the EEPW-EWEC Project for supporting the value chain developments toward economic empowerment for ethnic minority and poor women. a. The expected value chain developments in the target villages would require efforts in almost all aspects of the value chains, ranging from product designs, investment in production facilities, enhancing technical skills for all primary actors, promoting linkages across different actors while pushing for horizontal cooperation (such as establishment of farmer groups etc.), improved access to credit, promoting policy making for an enabling environment etc. b. The current direction of value chain development pursued by the EEPW-EWEC Project appears to be relevant and promising. It was informed that the Project has encouraged natural dyeing weaving for high value added market, production of natural soaps, promotion of one traditional snack, as well as high value added bamboo products. Discussion with stakeholders during the fieldwork re-affirmed that there would be promising market niches for these upgraded products. According to the Project management team, some of these products such as traditional weaving ones using natural dyeing already found promising markets for high-end customers, especially tourists. c. Having that noted, it is important to emphasize that this upgradation certainly requires changes. New designs (and hence skills) are needed, additional (and substantial in some case) investments need to be in place, marketing efforts are also necessary. Most notably, willingness (and dynamics) to changes need to be triggered and nursed. This raises challenges for a single project of relatively short project cycle like the EEPW-EWEC Project. More importantly, such value chain developments, while being relevant and promising, might not benefit many traditional actors who are either not willing or not well-endowed or not attracted (by profitability of the value chains). Therefore, the Project should also pay adequate attentions in ‘small wins’ such as some improvements (in quality, designs, packaging) to make the current products more marketable for the local in the ‘traditional’ markets of the rural villages. d. In addition, it is noted that the current targeting strategy of the Project has covered a number of 18 villages where poverty (proxy) was high and having potential for the four value chains selected for support. Even for these target villages, the number of the value chain actors accounted for approximately two percent of the total number of households. This opens two strategic options for the Project: (i) to roll out the success in the target villages to other villages; and (ii) to expand the list of the value chains selected. Either the two directions are important for the Project to reach its target number of beneficiaries. 3.9 No land acquisition or resettlement No land acquisition or resettlement have taken place in the project up to 31 December 2018. During the third quarter of 2018, the project finalized the construction of one small facility in Kwain Yeik village (Chaungzone township), The Project didn’t pay for the land (which was 22

vacant, unused and unoccupied and free of encumbrances), it was offered by one of the members of the group of biscuits producers. The landowner shared free of charge the land for the construction of the small facility during a period of 10 years (scanned copies of the land sharing offer, and the formal acceptance issued by the group of producers are enclosed in Annex 5). After that period of time, both parties (landowner and the group) will negotiate new conditions for the extension or will decide and automatic renovation under the same conditions. As a prove of no disbursement/payment for land acquisition, the project shared the latest December 2018 financial statements already cleared by MOHT and shared with ADB (Annex 6). From 19 to 21 December 2018, two due diligence took place in Mamogyaung and Thein Gone village (in Kyiakhto and Mudon townships respectively) for two plots that were offered by our beneficiaries for the construction of one biscuits + dried fruit processing facility (Kyaikhto) and a weaving and natural dyeing facility (Mudon). Due diligence proved that the proposed subproject hasn’t IR impact. The screening checklist from PAM was used for the due diligence. The construction of both facilities started during the last week of January 2019. A summary of the due diligence report is enclosed as a reference (Annex N 7). 3.10 Capacity development and training activities for indigenous people Up to December 2018, 48 trainings modules were delivered by the project in the four target townships and Nay Pyi Taw. A total of 658 women out of 796 trainees attended the training modules. Regarding the ethnic group participation, the trainees were delivered in each township as follows: a. Mawlamyine with a total of 104 trainees, 49% out of them were women and an estimation of participation per ethnic group equal to: 30% Myanmar, 60% Mon and 10% Kayin. b. Kyaikhto with a total of 274 trainees, 80% were women and an estimation of participation per ethnic group equal to: 40% Myanmar, 20% Pao and 40% Kayin. c. Mudon with a total of 197 trainees, 92% were women and an estimation of participation per ethnic group equal to: 90% Mon and 10 Myanmar. d. Chaungzone with a total of 184 trainees, 98% were women and an estimation of participation per ethnic group equal to: 30% Myanmar and 70% Mon, and. e. Nay Pyi Taw with a total of 37 trainees 68% out of them were women. The last consolidated table of the local capacity building and training modules offered to project to beneficiaries, local CSOs and government up to de December 2018 is enclosed in Annex Nº 8 (included in the official IV quarterly report, for 2018).

Percentage of trainees per ethnic group and township Up to 31.12.2018 Ethnic group Kyiakhto Mawlamyine Mudon Chaungzone Bamar 40% 30% 10% 30% Mon - 60% 90% 70% Pao 20% - - - Kayin 40% 10% - - 100% 100% 100% 100%

4. SAFEGUARDS MONITORING MISSION (3 March 2018) ADB Safeguards Specialist conduct and due diligence mission on 3 March 2018 on involuntary resettlement and indigenous peoples safeguards.

Main Finding The main finding of the mission was is summarized as follows “The project is categorized as C for involuntary resettlement (IR) and B for Indigenous People (IP). The PAM of the project clearly states that any civil works or infrastructure upgrading that may cause any involuntary resettlement or land acquisition will not be eligible to be financed under the grant. It is also stated that any component that may cause any involuntary resettlement or forced land acquisition will not be eligible to be financed under the grant. For minor land requirements required for the subproject under output 3, means to acquire the land is using available government land (with no IR impacts) (refer to Annex II and III). This due diligence confirmed that the proposed subproject has IR impact and impact on ethnic grouped people. The screening checklist from the PAM is also used for the due diligence (Annex IV). The mission identified that (i) the project name was used to obtain the land plot, meaning that expropriation was used in preparation for the project; and (ii) there is a current complaint on the land; and (iii) the affected household (the farmer family) is vulnerable and has been living with less income from the 1 acre for 3 harvests now.

Currents Status of Resolution of this Issue The project didn’t implement any activity in the mentioned land furthermore no further monitoring or resolution for any of the issues identified during the due diligence was needed. The project will not pay any compensation and the government does not have any budget allocated to proceed with any of the figures related to land compensation. Summary of Issues and Findings. The table summarizes the issues and findings for Involuntary Resettlement & Indigenous People Impact issues raised and addressed during MYRM safeguards monitoring mission of 3 March 2018. Full report is attached in Annex 4.

Type of Impacts Yes No Remarks Due Diligence Mission’s findings and Notes Will it require X If yes, the civil works or The subproject will be in the plot of 1 acre of land permanent infrastructure upgrading already acquired by the EA 2 years ago. The and/or is not eligible for project AH did not receive any compensation and the temporary financing and must be Claim/appeal against the land transfer is still in involuntary land dropped from the list of pending stage. Unless the EA identifies a acquisition? proposed projects solution so that the proposed land is free from encumbrances, the civil works or infrastructure upgrading is not eligible for project financing and must be dropped from the list of proposed projects.

Is the ownership X If no, further Now, the EA has the ownership of the land dated status and current clarification of the in October 2016. The farmer (former user of usage of the land owner of the land is the land) has the tax pay slips which is entitled known? required as customary right of use

Are there any non – X If yes, the civil works or The farmer family has been using the land over titled people who live infrastructure upgrading 60 years by paying tax to the government. or earn their is not eligible for project livelihood at the site financing and must be or within the corridor dropped from the of impact (COI) / Right of Way (ROW)? Will there be loss of X If yes, the civil works or Loss of agricultural plot by the farmer is severe agricultural plots? infrastructure upgrading (more than 10%) is not eligible for project financing and must be dropped from the list of proposed projects.

Will there be losses X If yes, the civil works or Loss of crop production by the farmer is severe of crops, trees, fixed infrastructure upgrading (more than 10%) assets (i.e. fences, is not eligible for project pumps, etc.), financing and must be incomes or dropped from the list of livelihood? proposed projects.

Will people lose X If yes, the civil works or access to facilities, infrastructure upgrading services, or natural is not eligible for project resources? financing and must be dropped from the list of proposed projects.

Will any social or X If yes, the civil works or Loss of income by the famer is significant economic Activities infrastructure upgrading be affected by land is not eligible for project use- related financing and must be changes? dropped from the list of proposed projects.

Will the proposed X If yes, the civil works or Both famer and the shop house owner are ethnic Subproject involve infrastructure upgrading grouped people. The farmer family is very the transfer, is not eligible for project vulnerable. reallocation or use financing and must be of assets/ resources dropped from the list of owned / managed/ proposed projects. used by ethnic minority or vulnerable groups in the project site?

5. CONCLUSION AND RECOMMENDATIONS Overall, the project complies with most Safeguards criteria and has no IP, IR impact and for Outputs 1, 2 and 4. Regarding Output 3 it has no IP and IR impact but a minimal environmental impact due to small scale nature of production and all of them are manageable once the mitigation plans are implemented. It is recommended that the production flows to be reviewed again to determine the level and magnitude of environmental impacts and the mitigation measure that should go with large-scale production.

Conclusions Recommendations

Identified environmental impacts of fruit jam It is recommended that women participating in production are minimal, not significant and all the project should be made more aware of the of them manageable. The National Food necessary precautions in food handling, Processing Training Specialist has given environment and occupational safety. enough instructions to ensure consciousness on food safety in the production area.

Small scale biscuit production will not have It is recommended that these occupational significant environmental impacts. hazards be addressed by informing the workers to be aware of the risks and consider mitigation However, there are occupational risks measures for their own safety. It is also associated with it such as grinding of ordinary recommended that expiry dates of biscuits rice, use of hot plates for cooking/moulding the should be strictly monitored. Production workers biscuits, food safety during the production should develop a monitoring plan such as “first in process and food poisoning when expiry dates first out” to ensure that chronological production of the biscuits were not labelled properly. dates are sent to market and sold accordingly.

Water pollution and occupational hazards are It is recommended that workers should be the primary concerns in dye production on large made aware of these environmental impacts and scale. occupational hazards. Water treatment systems /pollution control mechanisms will be in place to lessen impact on the environment. The impacts of wastewater generation in small scale dye production can be managed.

Large scale production of coloured yarns may It is recommended that workers should be made have significant impact to the environment due aware of this environmental impact to be able to to use of rinsing water. help in the mitigation measures. This will be mitigated through the use of small settling tanks to collect wastewater, allowing the coloured elements to settle before disposal to public drains. Warm water should also be stabilized before disposal. Occupational hazards are present in this activity due to use of heated water that may cause skin burn. Dyed yarn production on small scale level has environmental impacts that can be mitigated with known technologies.

Small scale production of natural soap can have Occupational hazards can also be mitigated minimal environmental impacts when water use through general awareness training of the can be limited. workers.

Based on the REA, very minimal earth moving It is recommended that contractors for the activities will be done in Naing Hlon and Tan proposed production/multipurpose centers be Kon Tine and therefore minimal air pollution guided by mitigation measures for construction impacts due to dust can occur. No water provided to the National Civil Engineer. pollution will likely take place in the proposed temporary site as construction will involve use of light materials. Solid waste generation in these temporary sites will likely be minimal and manageable due lesser number of people in the area during day time only, and the existing township system on waste management. All other parameters in the REA are not significant to cause negative impact on the environment. The environmental impact of the activities in It is recommended that the process flow be Output 3 were reviewed and assessed by the reviewed again to determine the level and International Environment Safeguards Specialist magnitude of environmental impacts and the and noted that these impacts are minimal and mitigation measure that should go with large- can be mitigated. Most of the safeguards criteria scale production. have been complied with by the Project. Overall, Output 3 of this Project has minimal environmental impacts due to small scale nature of production. However, when large-scale production will be required in the future. Project will use only donated lands from local It is recommended that due diligence should beneficiaries. Due dillgence should check screening checklist from PAM and check IR and involuntary resettlement (IR) or ethnic group IPimpact. (EG) impacts. Project Executing Agency to ensure that the It is recommended that all bidding documents core labor standards and Myanmar’s applicable and contracts for works contain provisions that laws and regulations are complied with during require contractors to comply with national Project implementation. occupation health and safety (OHS) regulations and ADB Safeguards requirements.

6. PROPOSED ACTIONS FOR THE NEXT REPORTING PERIOD The Environmental Assessment Report of production processes for fruit jam, biscuit, soap and natural dye showed very minimal impact to the environment. However, at the moment, production is only at the pilot level. An environmental compliance monitoring of the procedures during actual run of production should be conducted to assess real time inputs to the environment. The construction of the production/multipurpose centers in Nhaing Hlon and Tan Kon Tine should be reviewed in terms of construction impacts and actual mitigation measures. The contractor of the centers should prepare an environmental management plan to mitigate impacts on environment resulting from land preparation, earth moving, noise and dust, and traffic due to delivery of construction materials. An ocular inspection in the construction sites should be done to determine if mitigation measures are fully implemented and that nearby residents are not affected by the construction activities. An environmental compliance monitoring of the bamboo training/multipurpose center will have to be conducted to determine if environmental mitigation measures are fully implemented and effective. The production process for bamboo craft should also be documented to determine red flags for mitigation. All bidding documents and contracts for works must contain provisions that require contractors to comply with national occupation health and safety (OHS) regulations and ADB Safeguards requirements. The project should monitor project activities for any potential environmental,

involuntary resettlement or adverse ethnic group impact and consult ADB on appropriate mitigating measures as and when necessary. Finally, a documentation of poverty alleviation through income generation from the project should be prepared.

ANNEX 1 Environmental Assessment Report

Environmental Assessment Report

Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project JFPR 9184-MYA

Environmental Assessment Report of 1) Production Processes for Fruit Jam, Biscuit, Soap and Natural Dye and 2) Proposed Temporary Sites for Production/Training Centers

Prepared by the Government of Union of Myanmar for the Asian Development Bank.

CONTENTS Page EXECUTIVE SUMMARY

1. INTRODUCTION...... 1 . 1.1 General Information ...... 1 . 1.2 Union of Myanmar’s Regulatory Framework ...... 1.3 Project Classification by ADB ...... 2. Environmental Assessment Report...... 3

2.1 General Description of the Project Area ...... 3 . 2.2 Identified Production Processes ...... 3 . 2.2.1 Fruit Jam Production ...... 3 2.2.2 Biscuit Production ...... 6 . 2.2 3 Natural Dye Production ...... 8 2.2.4 Yarn Dyeing ...... 10 . 2.2.5 Natural Soap Production ...... 11 2.3 Proposed Temporary Multipurpose Centers ...... 12 . 3 COMPLIANCE WITH ENVIRONMENTAL SAFEGUARDS ...... 14 . 3.1 Screening of Environmental Impacts ...... 14 . 3.2 Mitigation Measures ...... 14 3.3 Consultation with Local People ...... 14 . 3.4 Disclosure of Information ...... 14 . 3.5 Environmental Management Plan (EMP) ...... 14 . 3.6 Pollution Prevention ...... 14 3.7 Occupational Health and Safety ...... 14 . 3.8 Impacts on Physical, Cultural Resources ...... 14 . 3.9 Grievance Redress Mechanism ...... 15

4 CONCLUSION AND RECOMMENDATIONS ...... 16 . ANNEXES ...... 18 .

EXECUTIVE SUMMARY The Asian Development Bank (ADB) through a funding from Japan Fund for Poverty Reduction (JFPR) have provided support to the Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project (EEPW-EWECP). A total budget of $3.45 million for the period 2017-2019 was approved. The Project aims support micro and small enterprise (MSE) development, and increased employment and economic opportunities for the poor and women selling crafts and local food to tourists and residents in the east-west economic corridor. Four townships in Mon State, Myanmar have been identified. These are Chaungzone, Kyaik Hto, Mawlamyine, and Mudon. This project is an integrated approach to enable micro entrepreneurs to access technical training, skills in business management, appropriate technology, finance, and markets to build competitive and sustainable businesses and contribute to reducing household poverty. Based on ADB’s Safeguard Policy, the Project is classified as Category C. These are projects where activities are likely to have minimal or no adverse environmental impacts. However, a closer evaluation of the activities associated with this project, showed that fruit jam, biscuit, natural soap, natural dye production and yarn dyeing and bamboo craft production all have possible impacts to the environment. The environmental impact of the activities in Output 3 were reviewed and assessed by the International Environment Safeguards Specialist. An assessment of the possible environmental impacts was completed in this report. Most of the identified environmental impacts of fruit jam production are minimal, not significant and manageable. The National Food Processing Training Specialist is very conscious on food safety in the production area. Women participating in the project should be made aware of the necessary precautions in food handling, environment and occupational safety. Small scale biscuit production may not have significant environmental impacts. However, there are occupational risks associated with it such as grinding of ordinary rice, use of hot plates for cooking/molding the biscuits, food safety during the production process and food poisoning when expiry dates of the biscuits were not labelled properly. Identified occupational hazards should be addressed by informing the workers to be conscious of the risks and consider mitigation measures for their own safety. Natural dye production on large scale have water pollution and occupational hazards. Water treatment systems/pollution control mechanisms should be in place to lessen impact on the environment. The impacts of wastewater generation in small scale dye production can be managed. Large scale production of colored yarns may have significant impact to the environment due to use of rinsing water. This can be mitigated through the use of small settling tanks to collect wastewater, allowing the colored elements to settle before disposal to public drains. Warm water should also be stabilized before disposal. Occupational hazards are present in this activity due to use of heated water that may cause skin burn. Dyed yarn production on small scale level, have environmental impacts that can be mitigated with known technologies. It is recommended that workers be made aware of these environmental impacts. Small scale production of natural soap can have minimal environmental impacts when water use can be limited. Occupational hazards can also be mitigated through general awareness training of the workers. Most of the safeguard criteria have been complied with by the Project except an environmental management plan (EMP) for the proposed Multipurpose Center in Mawlamyine. As soon as this component of the Project is finalized, the EMP will be prepared based on available guidelines provided by the International Environmental Safeguards Specialist to the National Civil Engineer and the International Team Leader. Overall, Output 3 of this Project has minimal environmental impacts due to small scale nature of production. However, when large-scale production will be required in the future, it is 32

recommended that the process flow be reviewed again to determine the level and magnitude of environmental impacts and the mitigation measure that should go with large-scale production. Institutional Arrangements and Responsibilities

As indicated in the Project PAM and as implemented, these re the responsibilities and institutional arrangements:

I. PMU (i) Facilitate updating and coordinate with relevant agencies for approval of and ensure compliance with IEEs/EMPs, GAP and social safeguards criteria and screening procedures; (ii) Ensure that applicable environmental approval/s have been obtained from relevant agencies prior to any contract award;

II. PIU (i) Coordinate with the relevant agencies and consultants on updating the safeguard documents; (ii) Obtain applicable environmental approval/s from relevant agencies prior to any bidding; (iii) Conduct due diligence and prepare the social safeguards checklists for each civil works or infrastructure upgrading, to be confirmed by the assigned staff of PMU prior to submission for financing; and (iv) Monitoring and quarterly reporting on progress and issues (including safeguards compliance) to the PMU.

III. ADB (i) Assists PMU with timely guidance at each stage of project implementation following agreed implementation arrangements; (ii) Timely review of all documents that require ADB approval; (iii) Provide oversight for procurement and consultant recruitment; (iv) Twice yearly project review missions, midterm review, and evaluation at project completion; (v) Monitoring compliance of all grant covenants and ADB’s SPS (2009);

IV. International Environment Specialist under Technical and Project Management Support Package (TPMS) (i) Prepare the needed environmental assessment reports as may be required under ADB’s SPS (2009) and/or government requirements. The report/s will be submitted to government for approval and subsequent endorsement to ADB. The report/s will include an Initial Environmental; Examination (IEE) and Environmental Management Plans (EMPs), as may be required, for use during construction of the facilities and environmental management thereafter. The environmental assessment process is described in detail in the EARF; (ii) Assist the PMU in obtaining the applicable government environmental permits / clearances / approval prior to contract award; (iv) Work closely with the civil engineer to review the contractor’s EMP which will be included in the NCB bidding and shopping for works documents; (v) Prepare a checklist and reporting system to be used by the project team and civil engineer to monitor the contractor’s implementation and compliance with the EMP and mitigation measures during project implementation.

V. International Social Development Specialist under Technical and Project Management Support Package (TPMS) (i) Assist the PMU and PIU conduct safeguards screening for civil works and infrastructure upgrading;

1. INTRODUCTION 1.1 General Information The Asian Development Bank (ADB) through a funding from Japan Fund for Poverty Reduction (JFPR) have supported the Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project (EEPW-EWECP). A total budget of $3.45 million for the period 2017- 2019 has been provided. The Project will support micro and small enterprise (MSE) development, and increased employment and economic opportunities for the poor and women selling crafts and local food to tourists and residents in the east-west economic corridor. The identified project locations are in the four townships of Chaungzone, Kyaik Hto, Mawlamyine, and Mudon, in Mon State, Myanmar. This project is an integrated approach to enable micro entrepreneurs to access technical training, skills in business management, appropriate technology, finance, and markets to build competitive and sustainable businesses and contribute to reducing household poverty. The Project shall have the following outputs:

Output 1: Development of skills and management capacity of micro and small enterprises and their employees. This output will undertake: (i) value chain and market studies to identify final selection of crafts and local foods to be supported; (ii) design and implement training programs to improve existing and create new product lines based on the foundation studies; and (iii) train master trainers from existing training bodies (vocational training institutes, government agencies, NGOs) and provide training materials and equipment, as needed. Output 2: Strengthened access to business services, credit and commercial networks. This output will map input suppliers, business development training service providers, micro-finance providers, and the feasibility of credit access and commercial networks to strengthen market linkages. It will develop training courses and deliver training on business development, management and accounting that culminate in individual business plans. Activities will strengthen producers and retailers’ access to affordable credit by introducing them to local microfinance institutions, while implementing training modules to train producer/retailer groups to create independent savings and credit groups. Commercial networks involving producers, suppliers, wholesalers, and retail outlets and markets in Mon and Yangon will be strengthened by supporting participation in trade fairs and business matching workshops. Support to develop a "Made in Mon, Myanmar" brand, product design competitions for innovative handicrafts, and related marketing and promotion program will further raise market awareness of products produced in the project areas.

Output 3: Improved infrastructure to support access to markets and processing facilities. This output will provide retailers and traders with a custom-built public market facility with amenities in Mawlamyine and a multi-function processing center in Kyaikhto, with both facilities operated under public-private community partnership models (PPCP) to promote local ownership while ensuring effective management and long-term financial sustainability. This output will also establish a market management committee comprising local community members, retailers, small-scale producers, and local government authorities.

Output 4: Enhanced capacity of EA, IA and key stakeholders. This output will strengthen management capacity of the PMU and PIU by supporting institutional capacity building through trainings and interagency coordination for smooth project implementation, including bi-annual project review and planning meetings with participation of project staff, village focal point representatives, and other project stakeholders. Sex-disaggregated project performance and monitoring systems will also be established to monitor key performance indicators, safeguards compliance and the GAP.

The Project shall finance the consulting services for international team leader, international business development specialist, technical and project management support (including international environmental specialist and international social development specialist), international start-up specialist, PMU accountant, PIU accountant and external auditor. The Project is expected to be completed in 31 December 2019.

The Environmental Assessment Report is in support to Output 3 of the Project, i. e., enhanced infrastructure support access to markets and processing facilities. This document looks into the environmental impacts of proposed infrastructure support (temporary) and the processes implemented in the production of fruit jam, biscuit and natural dye. 1.2 Union of Myanmar’s Regulatory Framework A wealth of regulatory framework had been formulated and implemented by the Government of Union of Myanmar. The regulations on environment, health and safety have been embodied in the legislations formulated by the government agencies. These are identified and presented in Annex 1. 1.3 Project Classification by ADB In accordance with the ADB’s Safeguard Policy Statement, the Project is classified as Category C. These are projects where activities are likely to have minimal or no adverse environmental impacts; however, in the event that the Project involves any environmental impacts, mitigation measures for any identified impacts will be included in the environmental assessment and review framework. The environmental impact of the activities in Output 3 were reviewed and assessed by the International Environment Safeguards Specialist (under OIDCI contract). The production processes were finalized by the National Food Processing Training Specialist and the National Handicraft Training Specialist, and the temporary processing facilities were also identified.

2. Environmental Assessment Report Based on ADB’s Safeguard Policy, the Project is classified as Category C. Projects under this category are those where activities are likely to have minimal or no adverse environmental impacts. However, a closer evaluation of the activities associated with this project, showed that fruit jam, biscuit, natural soap, natural dye production and yarn dyeing and bamboo craft production all have possible impacts to the environment. The environmental impact of the activities in Output 3 were reviewed and assessed by the International Environment Safeguards Specialist. Ocular inspections and process demonstrations were conducted to further assess environmental impacts. An assessment of the possible environmental impacts was done and presented in the following sections.

2.1 General Description of the Project Area Mon State is situated on the Southern part of Myanmar between North latitude 14º51’ and 17º 34’, and between East longitude 96º52’ and 98º12’. It has an area of 4747.750 square miles. The state borders Bago Division and Kayin State on the North, Kayin State and Thailand on the East, Tanintharyi on the South, Gulf Martaban and Andaman Sea on the West. Mon State has a tropical climate. The Mon nationals who belong to the Austro-Asiatic subfamily were the old inhabitants of both Myanmar and Thailand who had had the contact with India from very early times. The Mon-Khmer subgroup of languages belongs to the Austroastic subfamily. At present, Mon are residing in Thaton, Kyaik Hto, Beelin, Paung, Moattama, Mawlamyine, Thanpyuzayak, Mudon, Ye, Kyeikmaraw, Chaungzone, Bago, Yangon and Kayin State. Majority of Mon nationals are Buddhists. Mon nationals were such pious people that they used to set up stupas and pagodas. In lower Myanmar, Mon architecture has been seen in two famous pagodas namely Shwedagon and Bago Shwe Maw Daw. Mon always worship traditional spirits. Most of

Mon traditional houses can be seen in Paung Township, Mawlamyine Township, Kyaikmaraw Township, Chaungzone Township, Mudon Township, Tanphyuzayat Township, Ye Township.

This project is being implemented in the Townships of Mawlamyine, Mudon, Khaik Hto, Chaungzone.

2.2 Identified Small Scale Production Processes for the Project 2.2.1 Fruit Jam Production To enhance the economic condition of the poor and women in the identified project area, tomato jam, pumpkin jam and coconut jam, in which ingredients are available locally, were considered. Training activities with the help of the National Food Processing Training Specialist was conducted in early 2018 for 25 participants in Chaungzone and Mudon. The training covered topics such as:

• Personal hygiene • Food production hygiene • Kitchen safety • Jam production technology • Use of equipment

A production/training area (4m x 4m), has been put up in Chaungzone Township, and pilot production have been conducted.

2.2.1.1 Process Flow Based on current best practices, the National Food Processing Training Specialist identified the process flow for tomato jam, pumpkin jam and coconut jam. These procedures are given in Figures 2.1 to 2.3. The red flags in the figure shows the points where there are identified environment, health and safety issues.

Figure 2.1. Process flow and environment, health and safety issues for tomato jam production.

Figure 2.2. Process flow and environment, health and safety issues for pumpkin jam production.

Figure 2.3. Process flow and environment, health and safety issues for coconut jam production.

2.2.1.2 Environmental Impacts of Fruit Jam Production Based on the identified steps in the production of tomato, pumpkin and coconut jams, issues on environment, health and safety were identified. The following impacts of jam production were considered: • Large scale production of fruit jam will use more water for washing tomatoes, pumpkin and coconuts. Demand for more water will be in conflict with current resource use in the project area; • Wastewater generated from the use of lime and salt for washing tomatoes will have to be treated before disposal to local drains. Water used for washing is contaminated with lime powder and salt and may harm the natural flora of nearby rivers; • Boiling/reduction of the jams uses energy resources (LPG); 37

• Accidental skin burn from boiling/reduction of jams and pasteurization process of the filled containers is a hazard to workers. Occupational safety should always be considered; • Food sanitation and work area cleanliness may affect the quality of jams produced. Food safety/quality control should be maintained at all times in the production areas; • Food poisoning from expired fruit jams can happen if proper labelling is not done (expiry dates) or when pasteurization is not performed well. Strict food quality control is a must to be able to prevent any risk of food poisoning; • Grating of coconuts and coconut milk extraction poses risks of finger and hand injury, in addition to food safety, and use of clean equipment. Workers should be aware of food safety and occupational hazards. Further, disposal of used coconut as compost material should be promoted; • Caramelizing palm sugar can cause skin burn for spilled hot sugar and water bath. Workers should be aware of occupational hazards; • Disposal of warm water from water bath container can cause increased temperature in receiving drains/canal. Workers should be instructed to equalize temperature of water used for boiling/water bath so as not to affect normal flora in bodies of water where it will be disposed of.

Most of the identified environmental impacts of fruit jam production are minimal, not significant and manageable. The National Food Processing Training Specialist is very conscious on food safety in the production area. The women participating in the project should be made aware of the necessary precautions in food handling, environment and occupational safety.

2.2.2 Biscuit Production

Biscuit production utilizes ground ordinary rice, palm sugar, coconut milk and salt. All these ingredients are sourced from local markets.

Location of Production Areas - Chaungzone

2.2.2.1 Process Flow The process of biscuit production is presented in Figure 2.4. The red flags in the figure shows the points where there are identified environment, health and safety issues. Ingredients are sourced from local markets and biscuit molds are used for cooking and shaping the product. Use of electric grinding machine consumes electricity. Cooking/baking using hot plates and molds uses LPG to generate heat and may cause skin burn.

Figure 2.4 Process flow and environment, health and safety issues for biscuit production.

2.2.2.2 Environmental Impacts of Biscuit Production Large scale biscuit production can result to a number of environmental impacts due to the nature of production process and the activities involved. There are more occupational and safety hazards involved in biscuit production. The following environmental impacts of biscuit production have been identified for this report:

• Manual grinding of ordinary rice uses electricity and may cause injury to the fingers and hands or electric shock when the outlets or plugs are defective. Workers should be aware of this occupational hazard; • Using a hot plate for baking the biscuit can cause skin/finger burn. Workers should be aware of this occupational hazard. Baking uses energy resources (LPG); • Rolling/molding of biscuits while hot can burn skin/fingers; • Food safety is at risk when the production area is not clean. Workers should be aware of this need for food safety; • Food poisoning can occur when biscuit expiry dates are not labelled correctly. Small scale biscuit production may not have significant environmental impacts. However, there are occupational risks associated with it such as grinding of ordinary rice, use of hot plates for cooking/molding the biscuits, food safety during the production process and food poisoning when expiry dates of the biscuits were not labelled properly. All these occupational hazards can be addressed by informing the workers to be conscious of the risks and consider mitigation measures for their own safety. Expiry dates of biscuits should be strictly monitored. Production workers should develop a monitoring plan such as “first in first out” to ensure that chronological production dates are sent to market and sold accordingly.

2.2.3 Natural Dye Production Natural dye production is one attraction of this project attributed to available natural dye sources such as India almond leaf, mango bark, ink nut, turmeric and indigo plant. Most of these coloring materials are readily available in the market. Location of Dye Production Areas - Naing Hlon, Mudon 39

2.2.3.1 Process Flow Cold and hot method of dye production technology have been studied by the National Handicraft Training Specialist and had provided training to beneficiaries of this project. Indigo plant dye in paste form has also been included in the dye production. The procedures for dye preparation are given in Figures 2.5 to 2.7. The red flags in the figure shows the points where there are identified environment, health and safety issues. Cold method is used for dye production using India almond leaf while hot method is used for Mango tree bark, ink nut and turmeric. There are only six steps in the cold method while there are ten steps in the hot method. Indigo paste production is also a cold method but involves more steps.

Figure 2.5. Natural dye production using cold method

Figure 2.6 Natural dye production using hot method

Figure 2.7 Natural dye production of indigo paste

2.2.3.2 Environmental Impacts of Natural Dye Production Although dyes produced for this project are of vegetable/organic origin, a number of environmental impacts have been identified.

• Large scale production of natural dye will use more water for washing of leaves and rinsing of colored yarn; • Wastewater produced from washing of leaves is a source of pollutants, as well as rinsing water which contains dye not fixed during the dyeing process; • Mechanical squeezing of dye extracts on large scale can pose risks of hands/fingers caught- in-between machines; • Boiling/color fasting uses energy resources (LPG); • Skin burn from hot process can occur; • Continuous stirring can cause hand injury. Water pollution and occupational hazards are the primary issues in dye production on large scale. Water treatment systems/pollution control mechanisms should be in place to lessen impact on the environment. The impacts of wastewater generation in small scale dye production can be managed. Workers should be made aware of these environmental impacts and occupational hazards.

2.2.4 Dyeing of Yarn Dyeing of yarn from natural color sources can be considered environment friendly. However, a closer look at the process to produce colored yarns with natural dye poses a number of environmental impacts. These impacts were identified in the following section.

Location of Yarn Dyeing Areas/Weaving – Thein Kon, Naing Hlon, Ta Kon Tine, Kwat Pa Yan, all in Mudon

2.2.4.1 Process Flow

The process of dyeing/coloring yarns have been identified by the National Handicraft Training Specialist. The red flags in Figure 2.8 shows the points where there are identified environment, health and safety issues.

Figure 2.8. Process flow for dyeing of yarn using natural dye

2.2.4.2 Environmental Impacts of Yarn Dyeing Yarn dyeing using natural, organic ingredients may not significantly affect the environment. However, a closer look at the use of water and rinsing water can have significant environmental impacts when production of colored yarn goes large-scale. Waste water from rinsing colored yarns add turbidity/color to water in addition to mordant/color fixers added during the process.

• Large scale dyeing of yarn will use a lot of water for washing/rinsing • Wastewater produced from rinsing of dyed yarn can pollute the environment • Wastewater produced from dye fixing are sources of pollution due to mordants or dye fixative agents; • Boiling of yarn to prepare it for dyeing uses energy resources (LPG) • Skin burn from boiling/squeezing can occur Large scale production of colored yarns may have significant impact to the environment due to use of rinsing water. This can be mitigated through the use of small settling tanks to collect wastewater, allowing the colored elements to settle before disposal to public drains. Warm water should also be stabilized before disposal. Occupational hazards are present in this activity due to use of heated water that may cause skin burn. Dyed yarn production on small scale level has environmental impacts can be mitigated with known technologies. Workers should be made aware of these environmental impacts to be able to help in the mitigation measures.

2.2.5 Natural Soap Production Three natural soap products were created for this project which uses locally available ingredients and hypoallergenic base of glycerine/glycerol. These ingredients include 1) lemon grass + ginger + honey; 2) tomato; 3) cucumber. 2.2.5.1 Process Flow of Soap Production

The process flow for natural soap production has been identified by the National Handicraft Training Specialist. This is presented in Figure 2.9. The red flags in the figure below shows the points where there are identified environment, health and safety issues.

Figure 2.9. Process flow for natural soap production

2.2.5.1 Environmental Impacts of Natural Soap Production Although natural soap production utilizes vegetable base, a number of environmental impacts and occupational hazards have been identified. These are:

• Large scale soap production will require use of more water for washing the vegetable base; • Use of blenders/grinders have risks of finger and hand injury; • Use of water bath in melting glycerine has risks of skin burns from hot containers; • Use of heating equipment uses energy resources (LPG); • Finger and hand injury can occur during cutting soap. Small scale production of natural soap can have minimal environmental impacts when water use can be limited. Occupational hazards can also be mitigated through general awareness training of the workers.

2.3 MITIGATION MEASURES 2.3.1 Small Scale Biscuit and Jam Production There are identified occupational risks associated with small scale biscuit and jam production. The following mitigation measures are recommended:

• Women workers should be aware of the risks of electrocution when using electric grinders for rice; proper handling and knowledge of equipment use: prevent finger burns due to use of hot plates for cooking/moulding the biscuits; knowledge on food safety during the production process and food poisoning when expiry dates of the biscuits are not labelled properly. • Women workers for this group should be informed on the risks and hazards to consider for their own safety. Production workers should develop a monitoring plan such as “first in first out” to ensure that chronological production dates are sent to market and sold accordingly.

2.3.2 Dye production • Water treatment systems/pollution control mechanisms should be in place to lessen impact on the environment. • The impacts of wastewater generation in small scale dye production can be managed. It is recommended that workers should be made aware of these environmental impacts and occupational hazards. • Occupational hazards due to use of heating equipment can be mitigated through general awareness training of the workers.

2.4 CONCLUSION AND RECOMMENDATIONS Based on ADB’s Safeguard Policy, the Project is classified as Category C. However, a closer evaluation of the activities associated with this project, showed that fruit jam, biscuit, natural soap, natural dye production and yarn dyeing and bamboo craft production all have possible impacts to the environment. The environmental impact of the activities in Output 3 were reviewed and assessed by the International Environment Safeguards Specialist and noted that these impacts are minimal and can be mitigated. Most of the identified environmental impacts of fruit jam production are minimal, not significant and manageable. The National Food Processing Training Specialist has given enough instructions to ensure consciousness on food safety in the production area. It is recommended that women participating in the project should be made aware of the necessary precautions in food handling, environment and occupational safety. Small scale biscuit production may not have significant environmental impacts. However, there are occupational risks associated with it such as grinding of ordinary rice, use of hot plates for cooking/molding the biscuits, food safety during the production process and food poisoning when expiry dates of the biscuits were not labelled properly. It is recommended that these occupational hazards be addressed by informing the workers to be aware of the risks and consider mitigation measures for their own safety. It is also recommended that expiry dates of biscuits should be strictly monitored. Production workers should develop a monitoring plan such as “first in first out” to ensure that chronological production dates are sent to market and sold accordingly. Water pollution and occupational hazards are the primary issues in dye production on large scale. Water treatment systems/pollution control mechanisms should be in place to lessen impact on the environment. The impacts of wastewater generation in small scale dye production can be managed. It is recommended that workers should be made aware of these environmental impacts and occupational hazards. Large scale production of colored yarns may have significant impact to the environment due to use of rinsing water. This can be mitigated through the use of small settling tanks to collect wastewater, allowing the colored elements to settle before disposal to public drains. Warm water should also be stabilized before disposal. Occupational hazards are present in this activity due to use of heated water that may cause skin burn. Dyed yarn production on small scale level has environmental impacts that can be mitigated with known technologies. It is recommended that workers should be made aware of this environmental impact to be able to help in the mitigation measures. Small scale production of natural soap can have minimal environmental impacts when water use can be limited. Occupational hazards can also be mitigated through general awareness training of the workers. Overall, Output 3 of this Project has minimal environmental impacts due to small scale nature of production. However, when large-scale production will be required in the future, it is 44

recommended that the process flow be reviewed again to determine the level and magnitude of environmental impacts and the mitigation measure that should go with large-scale production.

ANNEX 2 Due diligence report 03.03.2018

Due diligence report 03.03.2018

I. INTRODUCTION

1. The Asian Development Bank (ADB) fielded a safeguard due diligence mission the due diligence mission for the proposed land plot for the production/market facility was conducted on 3 March 2018. The mission was led by Khine Thwe Wynn, Associate Safeguards Officer, MYRM, ADB; and accompanied by U Than Htut Khine, Deputy Director, Directorate of Hotels and Tourism, PIU; U Win Zaw, Chief of the Office of Hotel and Tourism, Mawlamyine; Paul D. Ramirez Tapia, Team Leader, PIC; and Monica Minelli, Interior Designer, PIC.

2. Background. The Japan Fund for Poverty Reduction Grant Economic Empowerment of the poor and women in the East-West Economic Corridor (the “project”) was approved by the Asian Development Bank (ADB) on 15 December 2015 for $3 million and was signed on 17 May 2016 in Nay Pyi Taw. The Government and project beneficiaries will contribute $0.452 million equivalent (in kind) toward the project's total cost of $3,452,000. The impact of the project is aligned with the government’s priority to create jobs and generate income to reduce poverty. The project outcome is micro and small enterprises are enabled to increase business activities and employment in project areas. Project outputs are (i) skills and management capacity of micro and small enterprises and their employees developed, (ii) access to business services, credit, and commercial networks strengthened (iii) infrastructure to support access to markets and processing facilities improved (iv) capacity of executing and implementing agencies, and key stakeholders enhanced. The Ministry of Hotels and Tourism (MOHT) is the executing agency (EA) and the Office of the Chief Minister of Mon State is the implementing agency (IA). II. MISSION FINDINGS

The mission found out that the proposed land plot for the project facility has impacts on two households: one farmer family, and one shop house, photos of which are provided as Annex I. The details of each affected household are as follows:

1. Farmer Family Name: U Lane Gyi (the father of U Thein Zan) U Thein Zan (farmer currently using the land) Ethnic: Mon Family members: U Lane Gyi + 4 U Thein Zan + 4 The land’s ownership was under Ministry of Transport. It was transferred to Ministry of Hotel and Tourism in October 2016. The farmer family has been using the total 5 acres of paddy field (which includes the one acre of proposed land to be used for the project ) to grow crop for over 60 years. U Lane Gyi (the father) has been paying land use tax to the government but stopped 2 years ago. He explained that the invoices stopped coming to him 2 years ago, and he cannot pay tax anymore. The tax paid slips after 1985 are still with the family. The older slips were lost. U Lane Gyi has 11 sons. The poorest son (U Thein Zan) currently uses the land to grow crops. U Thein Zan’s immediate family has 5 family members; U Thein Zan, his wife Daw May Thu Lwin, and 3 of their children. The children are age of 6 years old, 4 years old and 1 month old. U Thein Zan’s family is poor and vulnerable. He earns approximately 1,600,000 kyats per year from selling the harvested crops. His main income source is farming, and sometimes he works as a general worker where he earns on average 24,000 kyats (8000 kyats per day x 3 working days per month) per month. His family’s daily expense is approximately 4000-5000 kyats. Until 2 years ago, U Thein Zan used total 5 acres of paddy field (including one acre of proposed land) and his approximate crop production of crops was 400 viss per harvest year. Starting from 2 years ago, the family was notified not to use the one acre of proposed land anymore as the land was going to be transferred to the Ministry of Hotels and Tourism from Ministry of

Transport and Communication. Since that time, a total of 3 harvest seasons have passed, and total production of crops per each year is approximately 320 viss. The mission was informed by the farmer’s younger brother and their father that 2 years ago, Ministry of Transport and Communication put a public notice for claim against transfer of property . The farmer family submitted the disagreement and a meeting was called by the township general administrative office and joined by Ministry of Transport and Communication, Ministry of Hotels and Tourism and the farmer family. After that meeting, the decision was made to proceed with the land transfer to the Ministry of Hotels and Toursim. So, the farmer family submitted the appeal letter but nothing has been heard back after that. The farmer family showed the draft appeal letter to the mission team (refer to Annex I).

2). Shop House Name: U Thi Ha Ethnic : Indian Family members: U Thi Ha + 3 There is a shop house which is partially affected by the project. The shop house’s dimension is approximately 10ft x 20 ft. The owner of the shop house is U Thi Ha. U Thi Ha and his wife are living in the shop house and their two children are sent to a hostel to prepare for the matriculated exam. The family does not own the land (it is on the shoulder of the road). The family was allowed to live there by the ward administrative office. The shop sells betel and gasoline for motorbikes. Average daily income of the shop is 8,000-10,000 kyats. The mission was informed that the family does not have any alternative place to live, and they would like to continue living in the same location even if the size of the structure will be reduced.

III. CONCLUSION AND RECOMMENDATION

The project is categorized as C for involuntary resettlement (IR) and B for Indigenous People (IP). The PAM of the project clearly states that any civil works or infrastructure upgrading that may cause any involuntary resettlement or land acquisition will not be eligible to be financed under the grant. It is also stated that any component that may cause any involuntary resettlement or forced land acquisition will not be eligible to be financed under the grant. For minor land requirements required for the subproject under output 3, means to acquire the land is using available government land (with no IR impacts) (refer to Annex II and III).

This due diligence confirmed that the proposed subproject has IR impact and impact on ethnic grouped people. The screening checklist from the PAM is also used for the due diligence (Annex IV). The mission identified that (i) the project name was used to obtain the land plot, meaning that expropriation was used in preparation for the project (ii) there is a current complaint on the land (iii) the affected household (the farmer family) is vulnerable and has been living with less income from the 1 acre for 3 harvests now.

The followings are the entitlements for the affected households: Suggested negotiation elements for the famer - Compensation for land OR Cash support equivalent for the AH to restore pre-project level income or national poverty line, whichever is higher OR Support in kind to develop alternative livelihoods to restore pre-project level income or national poverty line, whichever is higher - Crops compensation for the past 3 harvest seasons 48

- Additional support for vulnerable households (The farmer family is identified as vulnerable and severely affected as more than 10% of income is affected). Income restoration allowances or measures to be developed. Entitlements for the shop house - Compensation for the structure at replacement cost - Assistance/allowance of rental cost for the period of reconstructing the structure - Compensation for the loss of income during reconstructing the structure

The above elements are to be at or above replacement cost. Any value provided below replacement cost could nullify the negotiations and would require a resettlement plan and agreements on an entitlement matrix.

Any activities for this subproject in relation to the said parcel of land should not proceed until all the negotiations for the affected households are provided by the government. If the EA would like to proceed with the proposed subproject on the proposed land, the PMU should conduct, in consultation with the ADB, the detail measurement survey of the affected households, conduct the replacement cost survey, provide compensations to the affected households, and submit all the documents to ADB prior to any further activities of the proposed subproject.

According to the discussion with the PMU on 19 March 2018, the Shop will not be removed. However, the above mentioned surveys on the Shop and consultations are necessary to be done and documented. If the Shop is going to be removed or affected in future, the household will be entitled for compensation and assistance in accordance with the policy principles as provided within the ADB SPS (2009).

Relevant Government Policies and ADB SPS (2009) policies are provided in Annex V.

Attachments: 1. Photos taken on the due diligence mission 2. Relevant References from Grant Agreement 3. Relevant References from Project Administration Manual (PAM) 4. IR and IP Screening Checklist 5. Relevant references from country’s laws and regulations and ADB SPS (2009)

Annex I

Photos taken on the due diligence mission

The proposed land plot (Not being used by the farmer for growing crops for 3 crops seasons now)

Current living condition of U Thein Zan’s family (Farmer) (The house is under reconstruction and the family is living without shelter).

Group photo with the mission team and the famer family (left to right: Brother of the famer, U Lane Gyi who is the father of the farmer, Monica Minelli, Daw May Thu Lwin who is the wife of the famer and their one month old son, U Thein Zan and their two daughters, Khine Thwe Wynn).

The draft copy of the appeal letter submitte d to the State Government by the famer family (Note: The original letter was submitted. The family did not photocopy the submitted version. This one is the draft copy and the date is absent)

The front part of the shop house

The side view of the shop house

The portion of the shop house that will be affected (from front view)

Annex II Relevant References from Grant Agreement Schedule 4. Executing of Projects; Safeguards, Gender, Financial and Oher Matters

Annex III Relevant References from Project Administration Manual (PAM) Chapter VII. Safeguards Paragraph 100: No adverse environmental or social impacts are expected to arise from the project. The Project is categorized as C for involuntary resettlement and environment and B for Indigenous People. It is focused primarily on training and capacity building for the rural poor who are overwhelming majority ethnic minority people. Project preparation and implementation will follow ADB’s Safeguard Policy Statement (SPS 2009). It will not support any activities that require land acquisition and resettlement or have any adverse impacts on Indigenous People and the environment. The land for the market will be vacant, unused and unoccupied land, to be identified and provided by the government and project beneficiaries. A due diligence during project implementation shall confirm that (i) the project will not entail land acquisition; (ii) that where land is available, such lands are free from encumbrances; and (iii) there are no past or existing land and resettlement issues in regard to existing facilities. This will be ensured through completion of the social safeguards screening checklist by the PIU for each civil works or infrastructure upgrading. The checklists will be confirmed by the assigned staff of PMU and consultant support prior to submission for financing. Appendix 3 of PAM: Involuntary Resettlement and Indigenous People Safeguards Guidelines The Project is categorized C for involuntary resettlement (IR) and B for Indigenous People (IP) impacts as per Operations Manual F1/ADB’s Safeguard Policy Statement, 2009 (SPS). Any civil works or infrastructure upgrading that may cause any involuntary resettlement or land acquisition or indigenous people impacts will not be eligible to be financed under the grant. Any component that may cause any involuntary resettlement or forced land acquisition will not be eligible to be financed under the grant. For minor land requirements required for the subproject under output 3, means to acquire the land is using available government land (with no IR impacts). Due diligence during the project implementation prior to any civil works shall confirm (i) the project will not entail further land acquisition; (ii) that where land is available, such lands are free from encumbrances; and (iii) there are no past or existing land and resettlement issues in regard to existing facilities. The project is primarily focused on training and capacity building for the rural poor. Both the project areas have a high presence of ethnic minority groups who are the primary project beneficiaries and are the overwhelming majority. Hence it meets the criteria of integration of IP elements into the project design. Pre-identification of villages (to be confirmed during project implementation) with people from Mon and Karen groups who will be the overwhelming majority of the beneficiaries with other ethnic groups. Consultation and participation will be continued throughout the project cycle to ensure their involvement in linkages to micro finance providers to access credit, training and other project activities. In order to ensure compliance with ADB’s SPS, the Ministry of Hotels and Tourism as executing agency will ensure social safeguards compliance under the project and provided with the required fund and resources (i.e. staff). A set of criteria and screening procedures for eligible civil works or infrastructure upgrading will be established and specific requirements for land will be set up and implemented by the Project Implementation Unit (PIU). Social safeguards compliance monitoring will be included in the regular project progress report and submitted to ADB. Criteria and screening procedures for IR and IP safeguards compliance are: 1. No civil works or infrastructure upgrading shall cause any IR and IP impacts. Specific screening check list is included in this guideline. The PIU will prepare the check list for each civil works or infrastructure upgrading to be confirmed by the assigned staff of PMU prior to submission for financing. Priority should be given to civil works or infrastructure upgrading which will not involve additional land requirements. 2. Land acquisition will not cause: a. Involuntary resettlement of the formal or informal land users, squatters or encroachers of the land

Annex IV b. Dispossession of assets belonging to the ethnic minority and/or vulnerable groups c. Significant loss of assets or source of income/ livelihood of the owner of the donated assets/lands. 3. When government land is being used, it has to confirm with the IR and IP screening checklist for the civil works or infrastructure upgrading to be eligible for grant financing 4. Under any circumstances, the grant fund must not be used for purchasing of land for implementation of civil works or infrastructure upgrading

IR and IP Screening Checklist Involuntary resettlement & indigenous people checklist (Due Diligence Activity) A. Introduction Each subsection/ section needs to be screened for any involuntary resettlement (IR) and/or indigenous people (IP) impacts which will occur or already occurred. This screening determines the eligibility of the civil works or infrastructure upgrading to be financed under the Grant. B. Information on subsection/ section: Land plot for the market facility District/ Administrative Name: Mudon Township, Mawlamyine Technical Description: The due diligence confirmed that the proposed subproject has impacts on the land use and livelihood of affected households and impacts on ethnic grouped people. C. Screening Questions for Involuntary Resettlement & Indigenous People Impact (Referenced to Project Administration Manual (PAM)) Type of Yes No Remarks Due Diligence Mission’s Impacts findings and Notes Will it require X If yes, the civil The subproject will be in the plot permanent works or infrastructure of 1 acre of land already acquired and/or upgrading is not by the EA 2 years ago. The AH temporary eligible for project did not receive any compensation involuntary financing and must be and the Claim/appeal against the land dropped from the list of land transfer is still in pending acquisition? proposed projects stage. Unless the EA identifies a solution so that the proposed land is free from encumbrances, the civil works or infrastructure upgrading is not eligible for project financing and must be dropped from the list of proposed projects. Is the X If no, further clarification Now, the EA has the ownership of ownership of the owner of the land is the land dated in October 2016. status and required The farmer (former user of the current usage of land) has the tax pay slips which the land is entitled as customary right of known? use Are there any non- X If yes, the civil The farmer family has been using titled works or infrastructure the land over 60 years by paying people who live or upgrading is not tax to the government. earn their eligible for project livelihood at financing and must be the site or within dropped from the the corridor of impact (COI) / Right of Way (ROW)? Will there be X If yes, the civil Loss of agricultural plot by the loss of works or infrastructure farmer is severe (more than 10%) agricultural upgrading is not plots? eligible for pr10oj ect financing and must be dropped from the

Will there be X If yes, the civil works or Loss of crop production by the losses of infrastructure upgrading is not farmer is severe (more than 10%) crops, trees, eligible for project financing and fixed assets must be dropped from the list of (i.e. fences, proposed projects. pumps, etc.), incomes or livelihood? Will people X If yes, the civil works or lose access to infrastructure upgrading is not facilities, eligible for project financing and services, or must be dropped from the list of natural proposed projects. resources? Will any social X If yes, the civil works or Loss of income by the famer is or economic infrastructure upgrading is not significant activities be eligible for project financing and affected by must be dropped from the list of land use- proposed projects. related changes? Will the X If yes, the civil works or Both famer and the shop house proposed infrastructure upgrading is not owner are ethnic grouped people. subproject eligible for project financing and The farmer family is very involve the must be dropped from the list of vulnerable. transfer, proposed projects. reallocation or use of assets/ resources owned/manag ed/ used by ethnic minority or vulnerable groups in the project site? D. Summary of Impacts 3. After reviewing the answers above, due diligence mission confirmed that the proposed subproject [X] Has involuntary resettlement (IR) and Indigenous People (IP) (negative) impacts, the proposed civil works or infrastructure upgrading is ineligible for project financing [ ] Has no IR nor IP impact, the proposed civil works or infrastructure upgrading is eligible for project financing

Annex V Relevant references from country’s laws and regulations

National Land Use Policy 2016 Clause No. 32 (f) Arrangement shall be made to allocate land to landless stakeholders; (g) Suitable protection measures shall be implemented in the proposed grant or lease and surrounding areas, in order to avoid the loss of land use rights and negative impacts on the socioeconomic life of existing land users; Clause No. 37 When land acquisition is done for social and economic development, sustainable land use for the future generations shall be taken into consideration. Clause No. 38 When managing the relocation, compensation, rehabilitation and restitution related activities that result from land acquisition and allocation, unfair land confiscation or displacement due to the civil war, clear international best practices and human rights standards shall be applied, and participation by township, ward or village tract level stakeholders, civil society, representatives of ethnic nationalities and experts shall be ensured. Clause No. 64 Customary land use tenure systems shall be recognized in the National Land Law in order to ensure awareness, compliance and application of traditional land use practices of ethnic nationalities, formal recognition of customary land use rights, protection of these rights and application of readily available impartial dispute resolution mechanisms. Clause No. 65 Duties shall be assigned for the preparation and revision of land use maps and records through public consultation processes by the ward or village tract land use committees under the supervision of the township land use committee, in order to: (a) Have accurate understanding of information related to land possession, land use, land availability and allocation in the area where ethnic nationalities live or traditionally use land resources for their livelihoods; (b) Conduct land use planning that considers social, environmental and economic issues; (c) Make correct decisions in accordance with law related to land use, settlement of disputes and encroachment. 66. When preparing and revising customary land use maps and records of ethnic nationalities, the responsible government departments and organizations shall do the following: (a) Consult with, and allow participation of, representatives and leaders of ethnic groups with knowledge of customary land use practices; (b) Formally recognize and protect the customary land tenure rights and related local customary land management practices of ethnic groups, whether or not existing land use is registered, recorded or mapped; (c) Recognize the rights of stakeholders who are members of ethnic nationality organizations, and recognize in existing laws in order to register their land use. Clause No. 67 Ethnic leaders, elders and women shall be involved in decision making processes related to land tenure rights of individual stakeholders or groups practicing traditional cultivation methods on customary lands, monitoring, and dispute resolution mechanisms. Clause No. 68 The customary lands of ethnic groups used traditionally that fall under current forest land or farmland or vacant, fallow and virgin land classifications shall be transparently reviewed, registered, and protected as "customary land", in accordance with the Constitution of the Republic of the Union of Myanmar, and land allocation to any land user, other than for public purposes, shall be temporarily suspended until these lands are reviewed, recognized and registered as customary lands.

Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project JFPR 9184-MYA

Clause No. 69 Provision in the new National Land Law relating to reclassification of customary land and land tenure right of ethnic groups shall be the protection against grants or leasing of land at the disposal of government allowed under any existing law. Clause No. 70 Reclassification, formal recognition and registration of customary land use rights relating to rotating and shifting cultivation that exists in farmland, forestland, vacant land, fallow land, or virgin land shall be recognized in the new National Land Law. Clause No. 71 Technical, financial and infrastructure support shall be made available to improve the land tenure security and agricultural practices of ethnic nationalities, in order to protect the environment, increase climate change resilience, and improve their food security.

Clause No. 73 In order to resolve disputes related to land use of ethnic groups, ethnic customary land dispute resolution procedures currently used shall be defined in the new National Land Law, and the respected influential representatives from the ethnic groups shall participate in dispute resolution decision making processes.

Clause No. 74 For ethnic nationals who lost their land resources where they lived or worked due to civil war, land confiscation, natural disasters or other causes, that desire to resettle to their original lands, adequate land use rights and housing rights shall be systematically provided in accordance with international best practices and human rights standards.

Clause No. 80 The following priorities shall be carried out when implementing research initiatives, capacity building activities, educational programs and pilot projects: (c) Determine the best methods for protection of land tenure rights of vulnerable groups, including smallholder farmers, ethnic nationalities and women;

Environmental Impact Assessment Procedures 2015 Clause No. 7 Projects that involve Involuntary Resettlement or which may potentially have an Adverse Impact on Indigenous People shall comply with specific procedures separately issued by the responsible ministries. Prior to the issuance of any such specific procedures, all such Projects shall adhere to international good practice (as accepted by international financial institutions including the World Bank Group and Asian Development Bank) on Involuntary Resettlement and Indigenous Peoples.

Relevant references from ADB SPS (2009) Involuntary Resettlement Safeguards Policy

Principle 5. Improve the standards of living of the displaced poor and other vulnerable groups, including women, to at least national minimum standards. In rural areas provide them with legal and affordable access to land and resources, and in urban areas provide them with appropriate income sources and legal and affordable access to adequate housing.

Principle 6. Develop procedures in a transparent, consistent, and equitable manner if land acquisition is through negotiated settlement to ensure that those people who enter into negotiated settlements will maintain the same or better income and livelihood status. Principle 7. Ensure that displaced persons without titles to land or any recognizable legal rights to land are eligible for resettlement assistance and compensation for loss of nonland assets.

Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project JFPR 9184-MYA

ANNEX 3 Union of Myanmar’s Environmental Regulatory Framework

Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project JFPR 9184-MYA

Union of Myanmar’s Environmental Regulatory Framework

The following section identifies the laws and regulations relating to environmental management in Myanmar (all encompassing). Some of these may not be applicable to the project.

A. Administrative Sector 1. The Penal Code of Offences Provisions related to prohibitions against contaminating Affecting the Public Health, public springs or reservoirs and “making atmosphere noxious Safety, Convenience, to health” Decency and Morals, 1861

2. The Explosives Act, 1887 Prohibitions on production, possession and use of explosives without permission 3. The Yangon Police Act, 1899 Provisions on offences which affect the human environment

4. The Village Act, 1907 Provisions on offences which affect the human environment

5. The Towns Act, 1907 Provisions on offences which affect the human environment

6. The Explosives Substances Prohibitions on production, possession and use of explosives Act, 1908 without permission

7. The Poisons Act, 1919 Provisions on the possession, use and disposal of poisons

8. The Police Act, 1945 Provisions on offences which affect the human environment

9. The Essential Supplies and Provisions for regulating water supply and environmental Services Act, 1947 sanitation in rural areas, to “maintain services essential to the life of the community, if necessary” 10. The Emergency Provisions Prohibitions on the destruction of embankments; causing Act, 1950 extreme suffering to the public or loss of life; endangering the security or well-being of public reservoirs, water supply works, water pipe connections, and public dams; and poisoning drinking water 11. The Territorial Sea and Measures for the protection of marine and coastal zone Maritime Zones Law, 1977 environments and for the conservation of marine biological diversity B. Agriculture and Irrigation Sector 12. The Embankment Act, Prohibitions on damaging or trespassing on embankments; or 1909 constructing and maintaining embankments without prior permission

13. The Pesticide Law, 1990 Provisions to monitor, control the selection of, store, transport and use pesticides in such a manner as to protect people, crops, other biological entities, and the environment

Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project JFPR 9184-MYA

14. The Plant Pest Quarantine Provisions to control the import of plants, plant products, Law, 1993 pests, beneficial organisms and soil; and to prohibit the intentional transportation of any of the above items which are known to be contaminated, or which have been placed under quarantine 15. The Fertilizer Law, 2002 Provisions for the use of appropriate fertilisers which support the conservation of soil and the environment C. Culture Sector 16. The Protection and Provisions to protect ancient sites and regions and cultural Preservation of Cultural heritage areas from any adverse impacts due to Heritage Region Law, 1998 industrialization, tourism and urbanization D. City Development Sector 17. The Yangon Water-works Act, Prohibitions on the pollution of water works in the city of 1885 Yangon 18. The City of Yangon Municipal Provisions relating to environmental sanitation, pollution of air Act, 1922 (The Law Amending the and water, and public health City of Yangon Municipal Act, 1991) 19. The Water Power Act, 1927 Prohibitions on the pollution of public water; and provisions for the use of water in the pursuit of energy production and mining in a manner which does not harm land, watersheds or “localities” [meaning unclear] 20. The Underground Water Act, Prohibitions on accessing and using underground water 1930 without a license 21. The City of Yangon Provisions relating to environmental sanitation, pollution of air Development Law, 1990 and water, and public health (Amended in 1995 and 1996)

22. The Development Committees Provisions relating to environmental sanitation, pollution of air Law, 1993 and water, and public health 23. The Mandalay City Provisions relating to environmental sanitation, pollution of air Development Law, 1992 and water, and public health E. Finance and Revenue Sector 24. The Myanmar Insurance Law, Requires any business which may pollute the environment to 1993 effect compulsory general liability insurance F. Forestry Sector 25. The Forest Law, 1992 Provisions to conserve water, soil, biological diversity and the environment; sustain forest produce yields; protect forest cover; establish forest and village firewood plantations; sustainably extract and transport forest products

26. The Protection of Wild Life and Provisions on the protection of fauna and flora and their Wild Plants and Conservation of habitat Natural (including living and non-living organisms, migratory and Areas Law, 1994 endangered species); the conservation of natural areas; guidelines for scientific research; and the establishment of

zoological and botanical gardens

Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project JFPR 9184-MYA

G. Health Sector 27. The Union of Myanmar Provisions to promote and safeguard public health including Public Health Law, 1972 measures and prohibitions regarding environmental health 28. The National Drug Law, 1992 Provisions managing the manufacture, storage, distribution, sales, import and export of pharmaceutical raw materials or drugs under a license; prohibitions on the manufacture, storage and sale of unregistered, fake, substandard, expired, diluted, harmful or dangerous drugs. 29. The Prevention and Control for Provisions to prevent the outbreak of communicable Communicable Diseases Law, diseases; regulate environmental sanitation; and measures 1995 in the event of a disease epidemic 30. The Traditional Drug Law, Provisions to promote and develop traditional medicine and 1996 drugs (including registration and manufacture). 31. The National Food Law, Provisions to control and regulate the protection, import, 1997 export, storage, distribution and sale of food, ensuring hygiene and food safety standards 32. The Control of Smoking and Consumption of Tobacco Product Law, 2006 33. The law Relating to Private Health Care Services, 2007 H. Hotels and Tourism Sector 34. The Myanmar Hotel and Provisions to prevent damage to cultural heritage areas or Tourism Law, September 2018 sites of natural beauty, caused by the hotel and tourism industry I. Industrial Sector 35. The Oilfields Act, 1918 Provisions to supervise the waste output from oil and natural gas exploration 36. The Petroleum Act, 1934 Provisions to regulate production, storage, and transport of oil so as not to cause pollution or the outbreak of fires 37. The Oilfield (Workers and Provisions for the welfare and health of oilfield workers; to Welfare) Act, 1951 ensure cleanliness in oilfields; and precautions against the outbreak of fires 38. The Factories Act, 1951 Provisions for the proper disposal of waste and effluents in factories; treatment of waste water; regulations for health and cleanliness in factories, and the prevention of hazards 39. The Private Industrial Provisions to avoid environmental pollution Enterprise Law, 1990 J. Livestock and Fisheries Sector 40. The Law Relating to the Provisions to develop fisheries; prevent extinction of fish Fishing Rights of Foreign species; safeguard fisheries waters and fisheries Fishing Vessels, 1989 (The management; prohibit unlicensed fishing, water pollution, the Law Amending the Law use of explosives, poisons and dangerous materials in Relating to the Fishing Rights fishing; and guide the issuing of licenses, management and of Foreign Fishing Vessels, inspection of fisheries. 1993)

Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project JFPR 9184-MYA

41. The Law Relating to As above Aquaculture, 1989 42. The Myanmar Marine As above Fisheries law, 1990 (The Law Amending the Myanmar Marine Fisheries Law, 1993)

43. The Freshwater Fisheries law, As above 1992 44. The Animal Health and Provisions for the control and prevention of outbreaks of Development Law, 1993 contagious diseases; inspecting imported animals, animal products and feed; certifying products and feed for export; ensuring the humane treatment of animals K. Mining Sector 45. The Land Acquisition (Mines) Provisions to prevent injury and minimise danger for mine Act, 1885 workers 46. The Salt Enterprise Law, 1992 Prohibitions on unlicensed production of salt or chemical salt/byproducts, including the use of charcoal and wood fires in production (to prevent deforestation) 47. The Myanmar Mines Law, Law under amendment to prevent pollution, improve natural 1994 resource conservation, and mitigate/reduce environmental impacts related to mining activities 48. The Myanmar Pearl Law, Provisions to protect and conserve oyster fishing grounds; 1995 and to avoid overfishing, species extinction and the degradation of water environments 49. The Myanmar Gemstone Law, Provisions to protect and conserve the environment during 1995 gemstone production operations L. National Planning and Economic Provisions instructing investor compliance with existing laws Development related to the conservation and protection of the natural 50. Myanmar Special Economic environment and the Environmental Conservation Law Zone Law, 2014 51. Myanmar Foreign Investment Provisions to restrict or prohibit investment activities which Law, 2012 affect public health, the environment and ecosystems, which produce toxic waste or which engage with toxic chemicals; duties of investors to conduct business in such a way as to avoid environmental damage, air and water pollution, in accordance with existing laws 52. Myanmar Citizen Broad provisions supporting environmental conservation and Investment Law, 2013 protection and adherence to existing laws related to environmental matters; restrictions on businesses which cause damage to the natural environment and ecosystems M. Science and Technology Sector Provisions for the Myanmar Science and Technology 53. The Science and Technology Research Department to carry out research and development Development Law, 1994 in the area of environmental conservation 54. The Atomic Energy law, 1998 Provisions to prevent the effects of atomic radiation on human beings and the environment

Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project JFPR 9184-MYA

N. Transportation Sector 55. The Obstruction in Fairways Provisions to remove or destroy any obstructions in any Act, 1881 fairway leading to any port in Myanmar, if deemed an obstruction or danger to navigation 56. The Canal Act, 1905 Prohibitions against the destruction of, damage to, or pollution of the flow of water in any canal or drainage work 57. The Yangon Port Act, 1905 Provisions to keep the port, rivers, and banks clean (including measures against fuel and oil leakage from vessels and wilful disposal of waste into water); prohibitions on the removal of protections from the banks or shores of a port; measures to prevent danger to public health from the spread of infection or contagious disease from vessels arriving at or stationed in ports 58. The Defile Traffic Act, 1907 Provisions to prevent river traffic danger on the Ayeyarwady River between Sinbo, Myithkyina District and Bahmo, Bahmo District 59. The Ports Act, 1908 Provisions to keep the port, rivers, and banks clean (including measures against fuel and oil leakage from vessels and wilful disposal of waste into water); prohibitions on the removal of protections from the banks or shores of a port; measures to prevent danger to public health from the spread of infection or contagious disease from vessels arriving at or stationed in ports 60. The Inland Steam Vessels Act, Provisions to protect passengers and goods from danger 1917 61. The Myanmar Aircraft Act, Provisions to protect public health against the spread of 1934 infections; and to prohibit willful flying in a manner so as to cause danger to any person, or property on land, water or in the air 62. The Motor Vehicles Law, 1964 Provisions to control vehicle engine emissions and the (The Law Amending the Motor leakage of fuel or oil Vehicles Law, 1989)

63. The Highways Law, 2000 Provisions to prohibit planting, cutting or destroying trees within highway boundaries without the permission of the Union Ministry of Public Works; and to prevent damage to highways 64. The Conservation of Water Resources Law, 2006

Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project JFPR 9184-MYA

APPENDIX 4 Land sharing Form

Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project JFPR 9184-MYA

REPUBLIC OF THE UNION OF MYANMAR

Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project (Financed by the Japan Fund for Poverty Reduction) JFPR 9184-MYA

Biscuits Processing Facility / Kuan Yaik Village

LAND AND BUILDING OWNERSHIP & PROCEDURE TO EXTEND/MODIFY THE LAND SESSION

The group of producers named "...... " (hereinafter “the Group”) created under the Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project (hereinafter "the Project") at Kuan Yeik village in Chaungzone Township on the ...../...../...../, agrees on the following:

1.- LAND OWNERSHIP a) The land shared by ...... with ID Nº...... was used by the Project to build a biscuit processing facility. b) The dimensions of the land is equal to 16 m2 (4 meters x 4 meters). c) The referred land is shared “free of charge” to the Group during 10 years. d) The period of time considered for the session of use of the land starts on the ...../...../..... and ends on ...../...../..... e) The processing facility will be used by the Group of biscuit producers. f) Neither the Project or the group members will have to pay or compensate in kind or cash to the landowner during the 10 years period for the use of the land.

2. PROCESSING FACILITY OWNERSHIP The processing facility is owned so lonely by the group of biscuit producers.

3. PROCEDURE TO EXTEND/MODIFY THE LAND SESSION Following the group members agrees on considering only the following three alternatives, once the initial 10 years will be expired. These alternatives will be considered by the group as main guidelines to lead and guide the extension/modification of the initial land session.

3.1 RENT a) The landowner can propose to the Group of producers a monthly rental plan for the land where the facility is located, (considering real and updated market rental prices). b) The Group is entitled to negotiate until reaching an agreement with the landowner.

3.2 SELL a) The landowner can propose to the group of producers a price for the land, considering real and updated market prices. b) The Group is entitled to negotiate until reaching an agreement with the landowner.

3.3 FREE of CHARGE

Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project JFPR 9184-MYA

a) In case that none of the previous two cases (3.1. or 3.2) are exposed/negotiated by the landowner, during one month before /one month after the expiration date of the 10 years session, the agreement will be automatically renewed for 10 more years.

In witness whereof the parties have signed this agreement.

Mrs……………………………. Mrs……………………………. Mrs……………………………. Group member Group member Group member

Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project JFPR 9184-MYA

Annex 5 Mitigation Measures for Construction Activities

Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project JFPR 9184-MYA

Mitigation Measures for Construction Activities

Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project

MOHT-ADB-JFPR 9184-MYA

Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project JFPR 9184-MYA

INTRODUCTION The ADB Environmental Safeguards Policy The Asian Development Bank’s Environment Policy (2002) aims is to ensure that development projects undertaken by ADB are environmentally sustainable. The policy contains a number of operational principles, which that measures identified as necessary during the environmental impact assessment are included in the project environmental management plan (EMP), and implemented in agreement with the borrower. The development of suitable mitigation measures is the first step in identifying options to ensure that negative environmental impact is minimized during the construction and operation of a project. The mitigation measures form the basis of the environmental management plan, which provides the framework and procedures for sustainability of the project on the ground.

Best Professional Judgement These mitigation measures do not cover all possible impacts and mitigation measures, but provide examples on how to manage common environmental issues. There will be occasions when local environmental conditions will require detailed technical, site-specific measures. For example, the management of acid sulphate soils or the treatment of contaminated land would require detailed surveys and expert input to develop effective mitigation measures.

To use these mitigation measures effectively, a degree of professional judgement will have to be exercised by the user to ensure that the mitigation measures chosen will manage all the environmental impacts identified during the assessment process. The user must also consider local environmental conditions of the project area and ensure that the measures recommended are appropriate for the nature and scale of the project being assessed. Applications of mitigation measures are normally examples of best construction practices, and are usually recognized by competent contractors.

The mitigation measures provide a number of possible options to at least minimize construction impacts, and therefore only those appropriate to the project being assessed should be selected.

Issues Covered Guidance is provided for the selection of mitigation measures dealing with the following environmental issues:

• Vegetation Removal • Erosion and Sediment Control • Air Quality • Water Quality • Noise and Vibration • Waste Management • Oil, Grease, and Fuel Management • Site Closure

Environment, health and safety awareness programs for all workers in the construction activities are required for the implementation of all of these mitigation measures. All awareness programs need to be prepared and worker awareness created before any construction activities commence.

Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project JFPR 9184-MYA

Vegetation Removal There are local regulations on removal of vegetation especially big trees, in areas covered by construction activities. These regulations should be complied with by the Contractor. Mitigation measures to manage impacts associated with the removal of vegetation should minimize the impact of construction activities on plant communities and habitats, both within the project area and in surrounding areas. Typical mitigation measures are as follows:

• The removal of vegetation shall be restricted to the development footprint, which should cover only areas that are already disturbed in preference to clearing vegetation. Any additional clearing for construction will compound the impacts, so ancillary facilities outside the footprint shall be avoided; • The construction boundaries shall be clearly demarcated. The clearing boundaries are to be shown to machinery operators with the instruction that machinery is not allowed to operate outside the boundaries. The area is then cleared to minimize disturbance to adjacent areas. Where this is not possible, any sensitive area(s) shall be clearly marked and protected by temporary fencing during clearing; • Construction activities shall minimize the loss or disturbance of vegetation adjacent to natural bodies of water and other important ecological habitats. Buffer zones shall be established—up to 20 meters (m) wide for watercourses and 100 m wide for important habitats—to minimize risk of accidental disturbance; • Measures for soil-erosion and sediment-control should be planned in stages to minimize the area of unstable or unprotected soil surfaces; • A procedure/plan shall be prepared to manage vegetation removal, clearance, and reuse; • When an area of vegetation must be cleared and need to be revegetated after construction activities, the following actions should be taken:

➢ The boundary should be fenced and the area cleared in such a way that the construction footprint shall not be extended during clearing works; ➢ If the area is to be excavated, topsoil must be removed and stored for later reuse. Topsoil should be stockpiled in long, low piles (less than 2 m high) adjacent to the works to maximize the viability of the natural seed stock in the soil; ➢ If the area is to be revegetated, preference should be given to naturally occurring species that are recognized as non-invasive species; ➢ Where cleared vegetation is to be windrowed, the windrows will not be allowed to abut areas where native vegetation is required to be retained.

Erosion and Sediment Control Construction activities that expose/open large areas of bare earth, can result to soil erosion and contamination of nearby water bodies. It includes: • vegetation removal • excavation of foundations and roadside barriers • cut-and-fill activities (including stockpiling) • topsoil stripping • demolition • service relocation

Erosion and sediment control during construction aims to minimize the length of time an area is left disturbed or exposed. This can be achieved by sequencing site-clearing and rehabilitation works to curtail exposure time, and by implementing it in conjunction with the application of specific erosion and sediment control structures. 14

Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project JFPR 9184-MYA

Erosion Control Soil erosion can be mitigated by using any of the following or combinations of the following principles:

• Reducing the area that is disturbed will limit the opportunity to add a source of erodible material; • Reducing the length of the slope of runoff this will limit the amount of flow occurring at erosive velocities; • Wherever possible, vegetation is to be left undisturbed and retained as soil cover to reduce rainfall impact. If vegetation cover is not available, spread mulches over the surface to reduce rainfall impact; • Reducing the velocity of overland or channelized flow this will reduce the entrainment of eroded sediment; • Topsoil is to be removed and stockpiled for final site rehabilitation and landscaping works; • Undertake the progressive revegetation of excavated areas and other disturbed areas as quickly as possible; • Create awareness among site personnel regarding the sediment and erosion control measures implemented on the site.

Erosion Protection and Sediment Control in Construction Areas The following practices apply to both temporary and permanent control of erosion. Erosion protection includes treatment above the site and within the construction area:

a. Above the construction area: • Diversion banks should be constructed above excavated areas to intercept and divert runoff water away from the exposed areas. Diversion banks normally remain in use after construction is completed, and should thus be constructed with a channeling capacity sufficient for coping with the 1-in-10 year storm discharges. Bare earth channels should be sloped at 0.05% to avoid channel erosion. • Diversion channels should have stable outlets that will not erode.

b. Within excavated areas: • Construction of temporary cut-off drains across the excavated area. These should be constructed at 2.0 m vertical intervals3 with channel slopes <0.05%. Check if stable outlets are available. • Erection of temporary silt fences using a porous geotextile fabric that will allow the runoff to pass through the structure but retain sediment. Silt fences should be erected at the base of the construction area or alongside a buffer area to prevent sediment from entering watercourses. Silt fences are built as a continuous structure across the slope, and are normally limited to an upper collection area of 0.3 hectares (ha)/100 m length of silt fence. • Use of mulches,4 which are spread at a sufficient depth, normally 25–50 millimeters (mm), over the exposed slope to intercept erosive rainfall.

3 The vertical interval (VI) is the vertical distance measured between two structures. In this case, the VI is 2.0 m measured between the upper and next lower structure. The VI is normally established with a surveyors level. 4 Cleared woody material can be made into a suitable organic mulch using a motor driven chipper. Other sources of mulch include stubble and cut vegetative material that is spread over the exposed area. Erosion matting or geotextile fabrics can also be used to protect soil surfaces. N.B. if woody mulches are used with wide C:N ratios [], N fertilizers will be required to correct for N imbalances, otherwise revegetation will be poor. 15

Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project JFPR 9184-MYA

c. Sediment control methods: The siting for temporary facilities and the design of stormwater drainage facilities should be carefully planned so that these do not collect and channel water flows at erosive velocities to previously safe discharge points. Contractor’s machinery and vehicle parking areas and material storage areas, which may include large bare earth areas, will increase stormwater runoff volumes. Runoff from these areas will be high in sediment, and may also be polluted with fuel, oil residues, and other construction related pollutants. It shall be directed into a holding pond in case of contamination. Runoff from upstream areas shall be diverted around these designated storage areas. • Use sediment-collecting basins at the base of large excavation areas. The design of sediment basins is a specialized topic, and requires careful design to match capacity with runoff volumes and settling times. Sediment basins should be installed at the start of the excavation, and need regular maintenance to clean out the sediment. Sediment basins shall be designed to cope with a 20-year peak discharge event. A turbidity and suspended solid discharge objective of 80 milligrams (mg)/liter (L) shall be used when designing sedimentation basins. • Site vehicle-washing facilities or rumble strips at construction-site exits to remove earth and mud from vehicles and machinery are available before leaving the construction site. Wastewater from washdown bays must discharged to a sediment-collection basin and only after that to a nearby watercourse. • Set up check dams in the form of rock dams, silt fences, and sand bags placed along catch drains so as to slow flow, reduce scour, and capture sediment. • Regular inspections and maintenance of silt fences, sedimentation basins, and other erosion control measures should be implemented. Following rainfall events greater than 20 mm, there should be an inspection of erosion-control measures and the removal of collected material. Any damaged structures should be immediately repaired and all structures should be cleaned of sediment to maintain channel or basin capacity.

Prevention of Soil Erosion on Finished Work Areas Upon completion of all construction works, all excavated areas should be established. The most cost- effective way to rehabilitate disturbed areas is to progressively revegetate these sections:

• All excavated sites should be assessed for the presence of subsoil. Areas where subsoils have been exposed are to have topsoil spread over them to a depth of 150 mm and are then to be revegetated. Any removal of topsoil from other areas must not create an erosion hazard in the source area by leaving barren areas behind that cannot revegetate. • Before any revegetation, the area should be assessed for soil compaction (roads, access tracks, and machinery parking areas). Compacted areas will need to be broken up by ripping to a depth of 1.0 m and then cultivated to achieve a suitable filth. Topsoil is then spread over the area. • Revegetation may include grassing or planting the area with trees or shrubs. The selection of species should be compatible with the local conditions and use requirements. Care must be taken in selecting the species so that invasive species are not accidentally introduced. • Suitable NPK fertilizers and lime may need to be applied to improve soil establishment, and the area should be watered until the plants have successfully established. • Areas that fail to revegetate will need to be replanted. Areas should be revegetated before the onset of the wet season so as to avoid damage from erosive rainfall. If it is not possible to satisfactorily revegetate an area before the onset of the rains, other temporary protective measures will be required, such as the use of mulches and erosion matting. • The contractor will be required to repair any unstable areas that persist at the end of the first rainy season.

Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project JFPR 9184-MYA

Prevention of Soil Erosion in Storm-Water Drainage Areas Where construction sites can be exposed to overland storm-water flow, as in roadside drains, attention must be given to reducing flow velocities. • For bare earth channels, off-takes (or turn-outs) need to be provided at about 2 m vertical intervals. The intervals can be longer if check dams are used or the channel can be revegetated.5 • Where long channel slopes cannot be avoided, stone paving will need to be used to control erosion. However, terminal runoff velocities in stone-paved channels will normally exceed the strength of soil at the discharge point, so care must be taken to ensure the stability of the outlet. • Outlets for storm-water channels need to be carefully selected, especially if discharge velocities are above the safe strength for the soil. • For permanent structures, high-velocity runoff can only be discharged downslope, via specially constructed stone or corrugated metal chutes to a level flared outlet with an energy dissipating structure. The flared outlet must have a vertical cutoff wall that extends at least 0.5 m below the outlet to avoid the structure’s being undermined. For well-vegetated outlets, discharge velocities may be able to exceed 1.0 m/second (s). However, for unstable non-vegetated sites, outlet velocities should not exceed 0.3 m/s. The larger the contributing area, the more critical the stability of the disposal area becomes. • All permanent culvert outlets that are required to carry continuous flows for more than 1 month, or that exceed discharges of 20 L/s, must have concrete headwalls on both upstream and downstream sides that have level flared outlets with vertical cutoff walls extending at least:

• 0.5 m below the outlet and at least 1.0 m on either side of the outlet. Outlets must be carefully designed and located so that it will not erode the area downstream of the release point. • All permanent structures shall be designed to cope with a 20-year peak discharge event. • At the end of the first rainy season, the Contractor will be required to repair any defective storm- water drainage structures and any areas downstream of the structures that may have eroded due to excessive concentration of storm water.

Air Quality Managing air quality during construction activities should ensure that construction work does not impact on the surrounding communities and environment. During construction, the primary method of dust control is to prevent the generation of dust in the first place. a. Dust production shall be minimized in dry periods by: • minimizing the area that is opened/disturbed; • restricting excavation activities such as topsoil removal during periods of high winds or under more stable conditions when winds could nevertheless direct dust towards adjacent communities; • locating stockpiles away from sensitive receptors; • protecting stockpiles of excavated materials from water and wind erosion by covering it with a geotextile fabric, or by using mulching materials to minimize wind erosion; • using a water truck for spraying water as dust suppression on all exposed areas as required (note: the use of waste oil for dust suppression is prohibited); • establishing and enforcing vehicle speed limits to minimize dust generation;

5 Where graders are used to form roadside channels, they leave behind a “V”-shaped drain that will concentrate the runoff at the apex and be a source of erosion. Parabolic-shaped channels, which can be dug by an excavator or a bulldozer, are better at distributing an even flow velocity throughout the channel shape. 17

Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project JFPR 9184-MYA

• leveling the loads of haul trucks travelling to and from the site in order to avoid spillage; • using tarpaulins to cover fugitive loads (soil and other loose excavated materials) on haul trucks moving off-site; • avoiding multiple access points during earthwork stages by using the existing road networks, so that earth and mud are not tracked onto the roads (particularly following wet weather); • carrying out progressive rehabilitation of cleared land; and • locating contractor’s compounds away from residential areas. • b. Other emissions shall be minimized by: • restricting/not allowing the burning of waste, • minimizing exhaust emissions from construction equipment through ➢ the regular maintenance of all construction machinery and vehicles, and ➢ directing exhaust emissions from mobile plant away from the ground. Water Quality During construction activities, the mitigation measures designed to protect water quality should ensure that the project does not result to a significant and/or sustained deterioration in the existing quality of streams, rivers, or other water bodies near or adjacent to the project area. Mitigation measures to protect water quality may include the following:

• To safeguard river bank stability, a 20-m wide strip of riparian vegetation shall be retained during construction as a buffer zone along the banks of all defined watercourses; • Stockpiles of potential water pollutants (i.e. bitumen, oils, construction materials, rubbish, fuel, etc.) shall be located in a safe location to minimize the potential of contaminants to enter local watercourses or storm-water drainage during heavy rainfall; • Storm-water runoff from all fuel and oil storage areas, workshops, and vehicle parking areas should be directed into an oil and water separator before being disposed of into any waterbody. All oil and water separators should be regularly cleaned after 20 mm of rainfall. • The cleaning of equipment and vehicles used during construction shall not be done in locations that permit the flow of untreated wastewater into any stream, wetland, or drainage channels adjacent to the area. • All construction filling and material storage areas shall have diversion drains installed above the work areas to intercept storm water runoff. These areas should have dust, erosion, and sediment control measures in place; • Where temporary crossings are to be constructed across any stream or drainage line, all haul roads and access tracks should, wherever practicable, be confined to the construction footprint area. Haul roads or access tracks shall be routed away from wetlands, and stream crossings shall be minimized. Where stream crossings are needed, a strong rock base shall be provided within the stream channel to adequately support the heaviest vehicle using the crossing. • All vehicle exit points from the construction site shall have a washdown or shakedown area where mud and earth can be removed from a vehicle before it enters the public road system. All washdown areas are to drain to a sediment basin; • Cutoff and diversion drains should be installed/constructed above any susceptible area (excavation site or stockpiles) prior to significant land disturbance so as to intercept and divert runoff water away from the site. Cutoff and diversion drains are to discharge storm-water runoff into stable drainage lines at non-erosive velocities; • All areas designated for the storage of fuels, oils, chemicals, or other hazardous liquids should have a compacted soil base and surrounded by a bund to contain 110% of any spillage. Large fuel storage facilities (> 5000 L) shall be covered by a roof to minimize the potential for infiltration and contamination of runoff. Alternatively, ventilated containers and individual

Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project JFPR 9184-MYA

spill pallets should be used, depending on the volume of hazardous materials. All fuel and lubricant storage sites shall drain into an oil and water separator. All oil and water separators are to be maintained after any rainfall event > 20 mm; • Areas designed for the storage of hazardous materials are to be clearly designated by HAZCHEMi signage, and the storage of such materials outside these areas is strictly prohibited. All vehicles used to transport hazardous materials are to display the appropriate HAZCHEM signage; • An Emergency Spills Contingency Plan shall be prepared by the Contractor as part of the sites- specific environmental management plan (SEMP). • There shall be on-going awareness training of site personnel with respect to maintaining water quality. This is to be part of the staff awareness training program that will be prepared by the contractor and included in the SEMP.

Noise and Vibration Construction activities often require measures to limit or mitigate the potential adverse impacts of noise and vibration on local communities. Noise and vibration can also affect fauna, and may interfere with breeding and feeding habitats. Mitigation measures are listed below:

a. Vibration • The project shall include reasonable actions to ensure that construction works do not result in vibration that could damage property adjacent to the project area; • Prior to the commencement of any construction activity, the project shall identify whether any machinery or planned action will cause significant vibration. If is the answer is yes, the project is to undertake a condition survey of all structures within the zone of influence; • The project shall monitor vibrations at the nearest vibration-sensitive receptor at the start of and during blasting, or during the use of non-blasting equipment causing vibration; • If vibration levels are monitored and found to exceed the vibration threshold according to relevant government regulation/criteria, the Contractor shall modify the construction activities until compliance with the regulation/criteria has been achieved.

b. Noise • Typical criteria for acceptable noise levels are: 45 dB(A) at the boundary of residential areas at night time and 55 dB(A) during day time hours; • Select plant and equipment, design work practices, and limit hours of operation to minimize potential impacts as far as practicable; • Operators of noisy equipment or any other workers in the vicinity of excessively noisy equipment should be provided with ear protection equipment; • Under noisy conditions, do not allow operators or any other worker to exceed the threshold that has been established for exposure to noise; • Employ effective silencing measures for equipment and other abatement techniques to minimize construction site noise; • Ensure that all equipment is in good condition, repaired and operated in correct manner; • Schedule services (e.g., delivery of tunnel waste) so that there is no congestion or waiting in queues for vehicles or machinery; • Schedule construction activities so as to minimize the multiple use of the most noisy equipment near sensitive receivers; • Fit buildings with acoustic panels or enclose a fixed plant in acoustic enclosures that provide from 15 to 30 dB(A) noise attenuation. The fitting of acoustic panels or the enclosure of noisy equipment is applicable when diesel-powered generators, air compressors, or ventilation systems are operated for long periods;

Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project JFPR 9184-MYA

• Maximize the offset distance between noisy plant items and nearby sensitive receivers whenever possible to mitigate noise to acceptable levels; • Consult with local residents and building owners to address community concerns.

Waste Management Waste from construction activities may arise from many sources, and consists of many types. Volumes of waste can be large, particularly spoil from major earthworks.

Mitigation measures for excavated waste material (spoil or incompetent construction materials) include the following:

• Suitable spoil can be used as a source of concrete aggregate or as filling materials for project components such as roads, bridge abutments, building foundations, and community developments; • There should be no risk of contamination of nearby watercourses or bodies of water from material placed in the construction area as a result of erosion or leaching; • Excavated materials unsuitable for fill should be disposed of in an environmentally safe manner and in compliance with government regulations; • Topsoil awaiting utilization should be stockpiled for use in post-construction landscaping.

For the disposal of all other types of solid and liquid waste that may be generated on-site from construction activities or from construction camps and contractor facilities, the Contractor should:

• arrange for any waste disposal licenses to be obtained; • ensure that the waste management measures (collection, sorting, and disposal) are correctly implemented on the construction site; • arrange for cleared vegetation to be processed as mulch through a chipper equipment, and for the mulch to be made available for revegetation purposes; • ensure that materials with the potential to cause land/water contamination or odor problems are not disposed of on the construction site; • enforce the practice of leaving work areas tidy; • ensure that correctly labelled waste containers are available at convenient locations for the disposal of wastes; • ensure that adequate toilet and washing facilities are provided in the construction site; • if chemical toilets cannot be provided at the work site, ensure that all sewage and grey water from these facilities are retained on-site and are subject to suitable treatment, with no sewage or grey water discharged directly into the environment under any circumstances; • ensure that run-off from all workshops and vehicle parking and servicing areas will be collected and initially drained into an oil and water separator before being released into a sediment basin for further settlement; • collect all used oil and fuel filters in a secured hazardous waste storage area, and dispose of in regulated landfills, or government identified treatment system; unless they can be recycled. • direct roof water to adjacent watercourses; • ensure that an adequately sized area is made available for the safe storage of wastes prior to collection; • ensure that all on-site wastes are suitably contained and prevented from escaping into neighboring fields, properties, and waterways, and that the waste contained does not contaminate soil, surface, or groundwater, or create unpleasant odors for neighbors near the construction area or workers in the construction site;

Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project JFPR 9184-MYA

• ensure that proper housekeeping is implemented, the site is regularly cleaned and waste material appropriately removed, i.e., to a landfill in accordance with regulations; • provide construction employees with training in environment, health and safety and waste minimization and safe disposal; and • put up signs/posters regarding waste minimization in areas always seen by the construction workers.

Oil, Grease, and Fuel Management

During construction, bulk storage of fuel and oil is a significant environmental hazard. Mitigation measures should ensure that appropriate storage and management is implemented, thus reducing the risk of contaminating land or water and that occupational health and safety is a primary consideration. Typical mitigation measures include the following:

• If stored on-site, bulk diesel fuel should be dispensed from elevated tanks surrounded by impermeable earth bunds. The height of the bunds should be sufficient to contain 110% of the volume of fuel stored on-site. The base of the tank storage area will drain into an oil and water separator. • Water remaining within the bund after a rain can be left to evaporate. Should the quantity be significant enough to require removal, the following procedure should be observed: ➢ If there is no appreciable contamination by hydrocarbons, the water should released through the oil and water separator, which will drain into a holding pond. ➢ If appreciable contamination is detected, the water should be pumped into a suitable storage tank for later collection and disposal by a licensed liquid waste handler. ➢ Oil and water separators are to be cleaned after 20 mm of rainfall.

• Safe transfer of fuel to and from the storage tanks should be facilitated through devices such as dry-break couplings, automatic flow cut-off devices, and tank overflow controls; • Other petroleum products should be stored in drums of 200 liters or smaller size, either within the bunded area or in enclosed and lockable containers with the capacity to retain spillage or leakage from the largest drum plus 10% of the second largest; • Refueling in the field should be done from road-licensed fuel trucks away from watercourses or other environmentally sensitive areas. Any ground that could be contaminated from spillages of more than 5 liters (or less if in a sensitive location), should be excavated and removed, or remediated through other approved means. • All fuel storage areas and refueling vehicles are to be provided with spill-containment kits.

The contractor should prepare an emergency response spill plan and conduct training for personnel on the use of spill kit and managing chemical spill.

Site Closure At the completion of construction work at a particular site, or when the construction program as a whole is completed, the Contractor should be responsible for removing all equipment and structures, cleaning up and disposing of all waste materials, and rehabilitating all construction sites and work areas so that these can be returned as much as possible to their previous use. There must be stabilization of all project construction sites, roads, and tracks (where batters and embankment fill must be stabilized, and road drainage stabilized as well). All borrow pits, quarries,

Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project JFPR 9184-MYA

and sand winning areas are to be rehabilitated; all fuel and oil depots closed; any contaminated soil removed; and the areas restored. All spoil heaps will have to be reshaped and revegetated.

All work sites should be rehabilitated according to the demands of the project. Areas that have been subject to heavy traffic will have to be ripped to at least 1.0 m deep. Areas where topsoil has been removed will require a reapplication of topsoil, and revegetation as required.

Waste that cannot be recycled must be disposed of in landfill areas, and the sites from which the waste came should be filled and closed. Wastes allocated a Hazchem classification are to be disposed of according to the Hazchem requirements.

Particular care must be exercised in the rehabilitation program so that invasive plant species are not given opportunities to colonize the disturbed construction areas.

Care must be taken to ensure that the sites are adequately restored. This will require adequate/ enough time to ensure that the sites are effectively reestablished.

Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project JFPR 9184-MYA

Annex 6 PHOTOGRAPHS

Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project JFPR 9184-MYA

Front view of temporary bamboo processing/training in Khaik Hto

Inner rooms of the Khaik Hto training center

Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project JFPR 9184-MYA

Outside garden, Khaik Hto training center

Front view of Khaik Hto training center

Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project JFPR 9184-MYA

Entrance to the Khaik Hto Bamboo Training/Processing Center

Community weaver in Mudon using natural dyed yarn.

Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project JFPR 9184-MYA

The loom machine used for weaving.

Turmeric dyed shawl, finished product.

Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project JFPR 9184-MYA

Chemical dyed woven material for bags (other weavers).

Chemical dyed material (other weavers)

Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project JFPR 9184-MYA

Houses of beneficiaries/weavers in Mudon

House of beneficiaries/weaver in Mudon

Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project JFPR 9184-MYA

Chemical dyed woven material (other weavers)

Chemical dyed finished product (other weavers)

Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project JFPR 9184-MYA

Biscuit production hot plates

LPG stoves for cooking biscuits

Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project JFPR 9184-MYA

Coconut milk extraction for biscuit production

Preparation of ginger for biscuit flavour

Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project JFPR 9184-MYA

Rice grinding machine (electric) for biscuit production

Mixing of ground rice with coconut milk for biscuit production

Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project JFPR 9184-MYA

Biscuit production industry in Chaungzone (current local producers) using charcoal stoves

Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project JFPR 9184-MYA

LPG stoves used in the pilot production of biscuits in temporary production center, Chaungzone

Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project JFPR 9184-MYA

Pilot biscuit production

Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project JFPR 9184-MYA

Cooking the biscuit

Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project JFPR 9184-MYA

Folding the biscuit while hot

Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project JFPR 9184-MYA

Folding the biscuit

Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project JFPR 9184-MYA

Finished product – natural soap

Indigo dye paste for dyeing

Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project JFPR 9184-MYA

Water bath for melting glycerine

Finished product – natural soap

Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project JFPR 9184-MYA

Preparation of leaf extract for natural soap production

Use of hand gloves for preparation of leaf extracts for natural soap production

Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project JFPR 9184-MYA

Finished products – natural dyed yarns for weaving

Finished product – natural dyed yarn, turmeric

Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project JFPR 9184-MYA

Boiling mango bark to extract yellow dye

Trainees for natural dye production and yarn dyeing

Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project JFPR 9184-MYA

Women trainees for yarn dyeing

Weaving yarn dyed with turmeric

Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project JFPR 9184-MYA

APPENDIX 7 Rapid Environmental Assessment of Multipurpose Centers

RAPID ENVIRONMENTAL ASSESSMENT CHECKLIST – Naing Hlon

Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project JFPR 9184-MYA

Instructions:

(i) The project team completes this checklist to support the environmental classification of a project. It is to be attached to the environmental categorization form and submitted to the Environment and Safeguards Division (SDES) for endorsement by Director, RSES and for approval by the Chief Compliance Officer.

(ii) This checklist focuses on environmental issues and concerns. To ensure that social dimensions are adequately considered, refer also to ADB's (a) checklists on involuntary resettlement and Indigenous Peoples; (b) poverty reduction handbook; (c) staff guide to consultation and participation; and (d) gender checklists.

(iii) Answer the questions assuming the “without mitigation” case. The purpose is to identify potential impacts. Use the “remarks” section to discuss any anticipated mitigation measures.

Country/Project Title: Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project MOHT-ADB-JFPR 9184-MYA

Naing Hlon Multipurpose Center (Weaving/Dyeing) Screening Questions Yes No Remarks A. Project Siting The proposed Naing Hlon Multipurpose Center is located in the Is the project area adjacent to or within outskirts of Mudon. The use of land for the Multipurpose Center was any of the following areas: offered by the owner. The Center is expected to house the loom equipment/ weaving activities of the beneficiaries and at the same time serve as showroom for finished products. The Center is expected to generate awareness on the use of natural dye in weaving scarfs, table runners, place mats, blankets, cushion, skirts for women, tea towels, longyi, bags and glass coasters and cultural heritage of Mon ethnic group in the area. • Underground utilities √ •

• Cultural heritage site √

• Protected area √

• Wetland √

• Mangrove √

• Estuarine √

• Buffer zone of √ protected area

• Special area for √ protecting biodiversity

• Bay √

Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project JFPR 9184-MYA

•

Screening Questions Yes No Remarks B. Potential Environmental Impacts Will the project cause…

• Encroachment on historical or √ No historical or cultural areas have been identified in this area cultural areas?

• Encroachment on precious √ No precious ecology/sensitive protected areas have been identified in ecology (e.g., sensitive or this area protected areas)?

• Impacts on the sustainability √ The Multipurpose Center will be used for showroom of associated sanitation and purpose only and will install toilet facilities for daytime use only. Solid solid waste disposal systems? waste collection bins will be provided and disposed of as part of the domestic solid waste in the community/township

• Dislocation or involuntary √ The site for the Multipurpose Center is currently used as rubber tree resettlement of people? plantation by a private individual, being donated to the project for an • agreement of ten years. There are no land occupants in the area that will result to involuntary resettlement of people.

• Disproportionate impacts √ This project is aimed at improving the economic condition of the poor on the poor, women and and women in the area, including indigenous people. children, Indigenous Peoples or other vulnerable groups?

• Accident risks associated with √ The Multipurpose Center is planned for construction in a 50m x 50m increased vehicular traffic, space with ample easement for possible parking area in the outskirts of leading to loss of life? Mudon, Township of Naing Hlon. The area is located on the secondary roads and local vehicular traffic is not expected (or risks of accidents), either during construction or operation of the Center. However, traffic management will be considered during the peak stage of the construction activities so as not to disrupt activities in the area. A traffic management plan will be prepared for the construction phase of the subproject. • Increased noise and air √ As noted above, there would be no increase in traffic volume that will be pollution resulting from caused by the project. Hence, there would be no increase in noise or air increased traffic volume? pollution. • Occupational and √ The environmental impact related to the construction of temporary community health and Multipurpose Center will be minor in nature and mostly limited to the safety risks? duration of construction and use of light materials. The impact will be confined mainly within the construction site.

• Risks and √ As indicated above, the environmental impact related to the vulnerabilities related construction of Multipurpose Center will be minor and mostly limited to occupational health during the duration of construction activities. No physical, chemical, and safety due to biological, and radiological risks/hazards during project construction physical, chemical, and operation phases. 48

Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project JFPR 9184-MYA

biological, and radiological hazards Adequate provisions will be included in the relevant contract during project documents to address potential occupational health and safety hazards construction and during the construction and operation phases. operation?

• Generation of dust in sensitive √ During construction, there will be minor dust generation due to areas during construction? materials handling and operation of small construction machinery and equipment. This will be controlled through dust suppression measures e.g. water spray and through proper maintenance of equipment and machinery. It will also be ensured that construction equipment and machinery comply with the regulations of the government.

• Requirements for disposal of √ Since the proposed site for the Multipurpose Center is plain land, it does fill, excavation, and/or spoil not require cutting or filling. The generation of spoils is not anticipated materials? except minor construction waste. The construction waste will be utilized to the extent possible. Remaining waste will be disposed of by the Contractor in the designated disposal site.

• Noise and vibration due to √ Since the proposed Multipurpose Center is relatively small, and will use blasting and other civil works? light materials, no heavy equipment and machinery will be used. No blasting will be required in the construction. Hence, no significant shaking or vibrations is expected during construction activities. Further, no construction works will be undertaken at night.

• Long-term impacts on √ Since the site for the Multipurpose Center is on a plain land and have groundwater flows as result of swift drainage pattern, no adverse impact on ground water flow is needing to drain the project anticipated. site prior to construction?

• Long-term impacts on local √ The vicinity of the temporary Multipurpose Center has a drainage hydrology as a result of system for the whole community hence, there will not be any impact on building hard surfaces in or local hydrology. near the building?

• Large population influx during √ Since the proposed Multipurpose Center measures only about 250 m2, project construction and the construction work force will not exceed 20 workers. The contractors operation that causes increased will arrange for potable water supply for the workers, and also provide burden on social infrastructure adequate sanitation facilities. Hence, there will not be any burden on and services (such as water social infrastructure and services during the construction stage. supply and sanitation systems)?

• Social conflicts if workers from √ Preference will be given to locally available labor. The construction other regions or countries are activities are relatively small in nature so requirement of workers will hired? not be significant. There would be no need to hire workers from other regions or countries.

• Risks to community safety √ Since the proposed Multipurpose Center will be a new structure, the caused by fire, electric shock, latest national building codes and safety measures will be followed. No or failure of the safety features houses are found nearby. of the center during operation?

Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project JFPR 9184-MYA

• Risks to community health and √ During the construction phase, waste collection and disposal will be safety caused by management carried out by the Contractor. and disposal of waste?

• Community safety risks due √ Specific community risks are not foreseen due to construction and to both accidental and natural operation of the Multipurpose Center since it has good access through hazards, especially where the the road. The Multipurpose Center will be maintained regularly in the structural elements or operation phase. components of the project are accessible to members of the affected community or where their failure could result in injury to the community throughout project construction, operation and decommissioning SEMP = Site-specific environmental management plan Source: Asian Development Bank.

RAPID ENVIRONMENTAL ASSESSMENT CHECKLIST – Ta Kon Tine

Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project JFPR 9184-MYA

Instructions:

(iv) This checklist focuses on environmental issues and concerns. To ensure that social dimensions are adequately considered, refer also to ADB's (a) checklists on involuntary resettlement and Indigenous Peoples; (b) poverty reduction handbook; (c) staff guide to consultation and participation; and (d) gender checklists.

(v) Answer the questions assuming the “without mitigation” case. The purpose is to identify potential impacts. Use the “remarks” section to discuss any anticipated mitigation measures.

Country/Project Title: Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project MOHT-ADB-JFPR 9184-MYA

Ta Kon Tine Multipurpose Center (Weaving/Dyeing) Screening Questions Yes No Remarks B. Project Siting The proposed Ta Kon Tine Multipurpose Center is located in the outskirts Is the project area adjacent to or within of Mudon. At present, the land is not used for any purpose as there are any of the following areas: a number of big trees in the vicinity of the area. The center is expected to house the loom equipment/weaving activities of the beneficiaries and at the same time serve as showroom for finished products. The Center is expected to generate awareness on the use of natural dye in weaving scarfs, table runners, place mats, blankets, cushion, skirts for women, tea towels, longyi, bags and glass coasters and cultural heritage of Mon ethnic group in the area.

▪ Underground utilities √

▪ Cultural heritage site √

▪ Protected area √

▪ Wetland √

▪ Mangrove √

▪ Estuarine √

▪ Buffer zone of √ protected area

▪ Special area for √ protecting biodiversity

Screening Questions Yes No Remarks

Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project JFPR 9184-MYA

▪ Bay √ B. Potential Environmental Impacts Will the project cause…

▪ Encroachment on historical or √ No historical or cultural areas have been identified in this area cultural areas?

▪ Encroachment on precious ecology √ No precious ecology/sensitive protected areas have been identified in (e.g., sensitive or protected this area areas)? ▪ Impacts on the sustainability of √ The Multipurpose Center will be used for showroom/ weaving purpose associated sanitation and solid and will install toilet facilities for daytime use only. Solid waste waste disposal systems? collection bins will be provided and disposed of as part of the domestic solid waste in the community/township

▪ Dislocation or involuntary √ The site for the Multipurpose Center is currently used fruit orchard for resettlement of people? a limited number of trees by a private individual, being donated to the project for an agreement of ten years.

There are no land occupants in the area that will result to involuntary resettlement of people. ▪ Disproportionate impacts on √ This project is aimed at improving the economic condition of the poor the poor, women and and women in the area, including indigenous people. children, Indigenous Peoples or other vulnerable groups?

▪ Accident risks associated with √ The Multipurpose Center is planned for construction in a 50m x 50m increased vehicular traffic, leading space with ample easement for possible parking area in the outskirts of to loss of life? Mudon, Township of Ta Kon Tine. The area is located on the secondary roads and local vehicular traffic is not expected (or risks of accidents), either during construction or operation of the Center. However, traffic management will be considered during the peak stage of the construction activities so as not to disrupt activities in the area. A traffic management plan will be prepared for the construction phase of the subproject. ▪ Increased noise and air pollution √ As noted above, there would be no increase in traffic volume owing to resulting from increased traffic this subproject. Hence, there would be no increase in noise or air volume? pollution. ▪ Occupational and √ The environmental impact related to the construction of Multipurpose community health and Center will be minor in nature and mostly limited to the duration of safety risks? construction. The impact will be confined mainly within the construction site. These minor impacts will be mitigated through the Site-specific Environmental Management Plan (SEMP).

• Risks and vulnerabilities √ As indicated above, the environmental impact related to the related to occupational construction of Multipurpose Center will be minor and mostly limited health and safety due to during the duration of construction activities. No physical, chemical, physical, chemical, biological, and radiological risks/hazards during project construction biological, and and operation phases. radiological hazards during project construction and operation? ▪ Generation of dust in √ During construction, there will be minor dust generation due to sensitive areas during materials handling and operation of small construction machinery and construction? equipment. This will be controlled through dust suppression measures e.g. water spray and through proper maintenance of equipment and machinery. It will also be ensured that construction equipment and

Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project JFPR 9184-MYA

machinery comply with the regulations of the government. There will be no earthworks as the area is rather small. ▪ Requirements for √ Since the proposed site for the Multipurpose Center is plain land, it disposal of fill, does not require cutting or filling. The generation of spoils is not excavation, and/or spoil anticipated except minor construction waste. The construction waste materials? will be utilized to the extent possible. Remaining waste will be disposed of by the Contractor in the designated disposal site. ▪ Noise and vibration due √ Since the proposed Multipurpose Center is relatively small, no heavy to blasting and other equipment and machinery will be used. No blasting will be required civil works? in the construction. Hence, no significant shaking or vibrations is expected during construction activities. Further, no construction works will be undertaken at night. ▪ Long-term impacts on √ Since the site for the Multipurpose Center is on a plain land and have groundwater flows as swift drainage pattern, no adverse impact on ground water flow is result of needing to anticipated. drain the project site prior to construction? ▪ Long-term impacts on √ No alteration in local hydrology will likely happen as the area has local hydrology as a drainage system along the road. result of building hard surfaces in or near the building?

▪ Large population influx during √ Since the proposed Multipurpose Center measures only about 250 m2, project construction and operation the construction work force will not exceed 15 to 20 workers. The that causes increased burden on contractors will arrange for potable water supply for the workers, and social infrastructure and services also provide adequate sanitation facilities. Hence, there will not be any (such as water supply and burden on social infrastructure and services during the construction sanitation systems)? stage.

▪ Social conflicts if workers from √ Preference will be given to local laborers. The construction activities are other regions or countries are relatively small in nature so requirement for workers will not be hired? significant. There would be no need to hire workers from other regions or countries. ▪ Risks to community safety caused √ Since the proposed Multipurpose Center will be a new temporary by fire, electric shock, or failure of structure, the latest national building codes and safety measures will be the safety features of the center followed. during operation?

▪ Risks to community health and √ During the construction phase, waste collection and disposal will be safety caused by management carried out by the Contractor. and disposal of waste?

▪ Community safety risks due to √ Specific community risks are not foreseen due to construction and both accidental and natural operation of the Multipurpose Center since it has good access through hazards, especially where the the road. The Multipurpose Center will be maintained regularly in the structural elements or operation phase. components of the project are accessible to members of the affected community or where their failure could result in injury to the community throughout project construction, operation and decommissioning?

Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project JFPR 9184-MYA

RAPID ENVIRONMENTAL ASSESSMENT CHECKLIST – Khaik Hto

Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project JFPR 9184-MYA

Instructions:

(vi) This checklist focuses on environmental issues and concerns. To ensure that social dimensions are adequately considered, refer also to ADB's (a) checklists on involuntary resettlement and Indigenous Peoples; (b) poverty reduction handbook; (c) staff guide to consultation and participation; and (d) gender checklists.

(vii) Answer the questions assuming the “without mitigation” case. The purpose is to identify potential impacts. Use the “remarks” section to discuss any anticipated mitigation measures.

Country/Project Title: Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project MOHT-ADB-JFPR 9184-MYA

Khaik Hto Bamboo Training/Processing Center Screening Questions Yes No Remarks C. Project Siting The proposed Khaito Bamboo Training/Processing Center is located in Is the project area adjacent to or the outskirts of Khaito. The use of the existing facility for the Center within any of the following areas: was offered by the owner. The Center is expected to house the equipment for bamboo processing/ treatment/preservation and at the same time serve as showroom for finished products. The Center is expected to generate awareness on the use of natural bamboo in making furniture.

• Underground utilities √

• Cultural heritage site √

• Protected area √

• Wetland √

• Mangrove √

• Estuarine √

• Buffer zone √ of protected area

• Special area for √ protecting biodiversity

• Bay √

Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project JFPR 9184-MYA

Screening Questions Yes No Remarks B. Potential Environmental Impacts

Will the project cause…

• Encroachment on √ No historical or cultural areas have been identified in this area historical or cultural areas? • Encroachment on precious √ No precious ecology/sensitive protected areas have been identified in ecology (e.g., sensitive or this area protected areas)?

• Impacts on the √ The Multipurpose Center will be used as bamboo processing and sustainability of associated training are for bamboo processing/treatment. The existing facility is sanitation and solid waste owned by the government cooperative agency and has exiting system disposal systems? for sanitation and waste disposal in the community/township

• Dislocation or involuntary √ The site for the Multipurpose Center is currently used as training center resettlement of people? for cooperative agency of the government.

There are no land occupants in the area that will result to involuntary resettlement of people.

• Accident risks associated √ The existing facility is located on the secondary roads and local vehicular with increased vehicular traffic is not expected (or risks of accidents) traffic, leading to loss of life? • Increased noise and air √ As noted above, there would be no increase in traffic volume that will be pollution resulting from caused by the project. Hence, there would be no increase in noise or air increased traffic volume? pollution. • Occupational and √ There will be no occupational and community health and safety risks as community health and the existing facility is already in place. safety risks?

• Risks and vulnerabilities √ Bamboo processing will use borax and sea salt as preservatives. These related to occupational are basically inert materials but when used in large amounts can be health and safety due to harmful to the environment and occupational hazard. Workers should physical, chemical, be made aware of this risk and should use proper personal protective biological, and radiological equipment (PPE) hazards during project construction and operation?

• Generation of dust in √ There will be no dust as the facility is already in place sensitive areas during construction?

• Requirements for disposal √ None of fill, excavation, and/or spoil materials?

Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project JFPR 9184-MYA

• Noise and vibration due to √ None. blasting and other civil works?

• Long-term impacts on √ None groundwater flows as result of needing to drain the project site prior to construction?

• Long-term impacts on √ The vicinity of the temporary Multipurpose Center has a drainage system local hydrology as a result for the whole community hence, there will not be any impact on local of building hard surfaces hydrology. in or near the building?

• Large population influx √ None during project construction and operation that causes increased burden on social infrastructure and services (such as water supply and sanitation systems)? • Social conflicts if workers √ None from other regions or countries are hired? • Risks to community safety √ The existing facility has been in place for more than 10 years and is not a caused by fire, electric fire risk to the community shock, or failure of the safety features of the center during operation? • Risks to community √ There is an existing township waste management system health and safety caused by management and disposal of waste?

• Community safety risks √ None due to both accidental and natural hazards, especially where the structural elements or components of the project are accessible to members of the affected community or where their failure could result in injury to the community throughout project construction, operation and decommissioning? RAPID ENVIRONMENTAL ASSESSMENT CHECKLIST - Chaungzone

Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project JFPR 9184-MYA

Instructions:

(viii) This checklist focuses on environmental issues and concerns. To ensure that social dimensions are adequately considered, refer also to ADB's (a) checklists on involuntary resettlement and Indigenous Peoples; (b) poverty reduction handbook; (c) staff guide to consultation and participation; and (d) gender checklists.

(ix) Answer the questions assuming the “without mitigation” case. The purpose is to identify potential impacts. Use the “remarks” section to discuss any anticipated mitigation measures.

Country/Project Title: Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project MOHT-ADB-JFPR 9184-MYA

Chaungzone Food Processing Center Screening Questions Yes No Remarks D. Project Siting The existing food processing/training center is located in Is the project area adjacent the outskirts of Chaungzone. The use of the existing to or within any of the facility for the Center was offered by the owner. The following areas: Center is now being used as pilot production area for fruit jams and biscuit.

• Underground utilities √

• Cultural heritage site √

• Protected area √

• Wetland √

• Mangrove √

• Estuarine √

• Buffer zone of √ • protected area

• Special area for √ • protecting biodiversity

• Bay √

Screening Questions Yes No Remarks 58

Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project JFPR 9184-MYA

B. Potential Environmental Impacts

Will the project cause…

• Encroachment on √ No historical or cultural areas have been identified in this historical or cultural area areas? • Encroachment on √ No precious ecology/sensitive protected areas have been precious ecology identified in this area (e.g., sensitive or protected areas)? • Impacts on the √ The existing facility is privately-owned and has existing sustainability of system for sanitation and waste disposal in the associated sanitation community/township and solid waste disposal systems? • Dislocation or √ The land is privately owned and will not result to involuntary involuntary resettlement of people. resettlement of people? • Disproportionate √ This project is aimed at improving the economic condition impacts on the poor, of the poor and women in the area, including indigenous women and children, people. Indigenous Peoples or other vulnerable groups? • Accident risks √ The existing facility is located on the secondary roads and associated with local vehicular traffic is not expected (or risks of accidents) increased vehicular traffic, leading to loss of life? • Increased noise and √ As noted above, there would be no increase in traffic air pollution volume that will be caused by the project. Hence, there resulting from would be no increase in noise or air pollution. increased traffic volume? • Occupational and √ There will be no occupational and community health and community health safety risks as the existing facility is already in place. and safety risks? • Risks and √ There are no harmful chemicals, biological or radiological vulnerabilities hazards in the production center related to occupational health and safety due to physical, chemical, biological, and radiological hazards during project

Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project JFPR 9184-MYA

construction and operation?

• Generation of dust in √ There will be no dust as the facility is already in place sensitive areas during construction?

• Requirements for disposal √ None of fill, excavation, and/or spoil materials?

• Noise and vibration due to √ None. blasting and other civil works?

• Long-term impacts on √ None groundwater flows as result of needing to drain the project site prior to construction?

• Long-term impacts on √ The vicinity of the temporary production Center has a drainage system local hydrology as a for the whole community, hence there will not be any impact on local result of building hard hydrology. surfaces in or near the building? • Large population influx √ None during project construction and operation that causes increased burden on social infrastructure and services (such as water supply and sanitation systems)?

• Social conflicts if workers √ None from other regions or countries are hired?

• Risks to community safety √ None. The production center is operational during daytime only caused by fire, electric shock, or failure of the safety features of the center during operation?

• Risks to community health √ There is an existing township waste management system and safety caused by management and disposal of waste?

• Community safety risks √ None due to both accidental and natural hazards, especially where the structural elements or components of the project are accessible to members of the affected 60

Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project JFPR 9184-MYA

community or where their failure could result in injury to the community throughout project construction, operation and decommissioning?