Safeguards Monitoring Report

Annual Report January 2015

BHU: Air Transport Connectivity Enhancement Project

Gelephu Airport

Prepared by Ministry of Information and Communications for the Royal Government of and the Asian Development Bank. CURRENCY EQUIVALENTS (as of 3 March 2016) Currency unit – ngultrum (Nu) Nu1.00 = $0.01485 $1.00 = Nu67.336

ABBREVIATIONS

ADB = Asian Development Bank CSC = Construction Supervision Consultant DEC = District Environment Committee DCA = Department of Civil Aviation DOF = Department of Forest EC = Environment Clearance EFRC = Environment Friendly Road Construction EMP = Environmental Management Plan ES = Environment Specialist IEE = Initial Environmental Examination NCE = National Environment Commission NRDCL = Natural Resource Development Corporation Limited NWF = National Work Force OHS = Occupational Health and Safety PC = Project Coordinator PM = Project Manager PMO = Project Management Office RGOB = Royal Government of Bhutan ROW = Right-of-way BHU = Basic Health Unit DGM = Department of Geology and mines

This safeguards 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. CONTENTS

I. Introduction ...... 1 II. Description of Project ...... 1 III. Institutional Arrangements ...... 4 IV. Status of Compliance ...... 4 A. Compliance with the Terms and Conditions of the Environmental Clearance ...... 4 B. Compliance with Section 8: Particular Conditions of Contract Conditions ...... 6 C. Compliance with the EMP ...... 8 V. Conclusion ...... 9 Annex 1: Environmental clearances issues for the Gelephu airport construction ...... 10

1

I. INTRODUCTION

1. The Department of Civil Aviation (DCA) under Ministry of Information and Communications (MOIC), Royal Government of Bhutan (RGOB) has initiated a plan to improve the current state of the country’s domestic air transport system under the Air Transport Connectivity Enhancement Project (ATCEP) with the assistance of Asian Development Bank (ADB). Three newly constructed domestic airports of Bumthang (centre), Yongphula (east) and Gelephu (south) in the country have been identified for further upgrading and improvement, based on the relative importance of these airports as domestic hubs for tourism and economic development within the respective region.

2. The project was classified as Category B for environment safeguards in accordance with ADB’s Safeguard Policy Statement (SPS). Hence an Initial Environmental Examination (IEE) report for the upgrading and improvement works was prepared in accordance with the SPS and disclosed on the ADB website. The IEE was also prepared in a manner to comply with relevant laws and regulations of RGoB including the Environmental Assessment Act (2000) and the Regulation for the Environmental Clearance of Projects (2001). Based on the IEE, an environmental clearance for the Gelephu airport was issued on April 25, 2013 with a validity date of April 24, 2015 by the National Environment Commission (NEC).

3. Due to the limited social and resettlement impacts the project was classified category C for social safeguards. However during project implementation after finalization of the detailed design it was found that land acquisition of 0.67 acre affecting one household would be necessary. Hence it was re-categorized to B and a Resettlement Plan (RP) was prepared and disclosed on the ADB website. The Project was categorized as C for Indigenous People impacts.

4. This monitoring report covers environmental and social safeguard activities that were implemented during construction for the Gelephu airport from January to December 2014. The report has been prepared based on the following:

i) Site inspection along the entire construction site in the airport ii) Discussion with the Contractor’s Site Engineer who was also the Environmental Focal Person iii) Discussion with the contractor’s workers on site iv) Review of documents maintained on site such as environmental clearance, contract agreement including the EMP etc. and v) Interactions with the local people living near the airport

II. DESCRIPTION OF PROJECT

5. The proposed project scope entails the upgrading and improvement of the existing domestic airport at Gelephu, Yonphula and Bumthang. The location of the Gelephu airport including the other two domestic airports is provided in Figure 1. The proposed airport improvement is designed to bring the facility to a level of development to fully meet international airport safety standards and provide sufficient runway length to accept unrestricted operations of aircrafts like the Dornier 228, Beech craft B200, Pilatus PC-12 and ATR42-500 as per Airport Reference Code 2B for all three airports. The proposed project will also include institutional strengthening and capacity building to support strategic management of the aviation development while improving environmental management. The scope of works for improvement of the Gelephu airport including contractor details is provided in table 1. As of preparing this 2 report construction works for the first two item have been completed and construction works for the third item is still ongoing.

Table1: Work items for Gelephu airport under ATCEP No. Work Item Name of Contractor Contract Award Contract date Completion Date 1 Construction of M/S Jamyang February 2013 December 2013 Perimeter fence Construction (Pkg I) M/S Yeshay T Denkar Construction (Pkg II) 2 Runway drainage M/S Penjor August 2013 March 2014 system; Flood Construction Pvt. Ltd protection structure 3 Construction of M/S Dee Gee September 2014 April 2015 Passenger Terminal Construction

6. Gelephu airport at Located at Bhur (Samteling) and Gelephu Geogs in in southern Bhutan. It is located about 3 km from Gelephu and 30 km from Sarpang district head quarter. The Indo Bhutan border is located within 1 km. Gelephu town is the closest market place, which is located near Indo-Bhutan boarder (Datghari of Assam state of India). The airport is some 270 km from Guwahati (State capital of Assam) and about 260 km from , the capital of Bhutan.

3

Figure 1: Location of the three Domestic Airports under the Project

4

III. INSTITUTIONAL ARRANGEMENTS

7. The Project is managed by a Project Engineer from Department of Civil Aviation (DCA) under the Ministry of Information and Communications (MOIC), RGOB. The Project Engineer also acts as the Environmental Focal Person on site on behalf of DCA. Project implementation support is provided to the DCA Project Engineer by the Construction Supervision Consultant (CSC) headed by a Team Leader (TL), an Environmental Specialist (ES) and Supervising Engineer. An EFP was appointed under M/S Penjor Construction Pvt. Ltd and M/S Dee Gee Construction.

8. The ES under CSC team conducts site visits to the project site on a periodic basis while the contractor’s engineers and CSC Supervising Engineer are responsible for the day to day implementation of safeguards. It has been made obligatory for the contractor to submit proposed and implemented EMP reports on a monthly basis along with construction work plan. Likewise the CSC compiles the work status of the entire project and produces quarterly progress reports which includes a section on implementation of the EMPs.

9. Further, construction activities are subjected to external monitoring by various parties such as Dzongkhag (district) Environment Officer, Dzongkhag Environmental Committee, Forest Official, Local Government Officials and national Environment Commission (NEC). The Dzongkhag Environment Officer who the focal person for environmental issues at Dzongkhag level, monitors the project on regular basis.

IV. STATUS OF COMPLIANCE

A. Compliance with the Terms and Conditions of the Environmental Clearance

No. Compliance Requirement Status 1 Any modification of the proposal shall take No modification has taken place during place only with the prior approval of the NEC the reporting period 2 Construction complies with the National Construction is as per the mentioned Environmental Protection Act 2007, laws. The site is monitored by the Environmental Assessment Act 2000 and its Dzongkhag Environmental Officer as Regulation 2002, Waste Prevention and well as the site supervisor from the Management Act of Bhutan 2009 and its design consultant firm. Regulation 2012, and the Water Act 2011 3 Complies with the Environmental Standards 2010 4 Construction is carried out as per the projects Construction is as per the IEE submitted documents submitted for environmental and as per the Environmental Clearance clearance issued. 5 Environmental Clearance is valid only for the EC issued by NEC is only for Gelephu construction of the domestic airport at airport Gelephu under Sarpang Dzongkhag. 6 The construction is confined within the Construction is within the premises of allotted area the airport boundary 7 Ensure compliance to all conditions of Construction is being carried out as per stakeholder clearances stakeholder clearances only 8 Local residents, households, communities, Few household has been affected but public, private parties, and any religious, compensated well as per RGoB Rules historic and ecologically importance sites are and Regulations. 5

No. Compliance Requirement Status not adversely affected by the construction 9 NEC is informed of any chance finds of No such discoveries made during the precious metals or minerals or articles that reporting period have economic, religious or ecological significance 10 Holder shall be solely responsible for any As all disputes and settlements have disputes been made during the IEE stage, the construction phase does not envisage any dispute arising 11 Holder shall ensure that the import and use of Equipment used at the site were all secondhand equipments and machineries are found to be in good condition. strictly prohibited 12 Construction conforms to ICAO standards, Design and Safety Consultants have a Safety Rules and Norms Site Supervisor who monitors this 13 Felling of trees is done upon obtaining Forest permits have been obtained. approval of Forest and Park Services 14 Excavated material is dumped at pre- Cut and fill method has been identified sites implemented at site. 15 Spillage and roll over of excavated materials Retaining wall has been constructed is avoided around the runway to dispose the excess material. 16 The holder shall ensure that adverse visual There were no adverse visual effects impact of construction is minimized that needed to be covered 17 Safety signs are posted at strategic locations There are no strategic locations which necessitate specific warning signs. However, the Contractor was advised to erect a sign at the access to the site with the necessary information specified in the Environmental Clearance 18 Ensure that adequate safety gadgets are Gum boots, helmets, and face masks provided to the workers have been issued to the workers. The workers were advised to use the face masks when engaged in such activities such as painting the poles for the fence 19 Adequate sanitation facility is provided to the There are four toilets at the workers workers camp which is on the construction site. The camp has adequate water for both cooking and washing as it is connected to the municipal water source as well as local source. The workers use the local source for washing and bathing while the municipal source is used for cooking. The workers’ camp was clean and well provided for with rice cookers and water boilers. Appliances for heating water were also available for the workers 20 Ensure that first Aid kit is available at site First Aid kit made available at the site. 6

No. Compliance Requirement Status 21 Erect a sign board at the entry to the airport Sign board has been erected 22 Copy of the Environmental Clearance is Copy of the EC was available with the available at the worksite Contractor during the reporting period

B. Compliance with Section 8: Particular Conditions of Contract Conditions

No. Compliance Requirement Status 1 Environment: The Contractor shall ensure that the Is in compliance with the National preparation, design, construction, Environmental Protection Act 2007, implementation, operation and Environmental Assessment Act 2000 decommissioning of the Project and all Project and its Regulation 2002, Waste facilities comply with Prevention and Management Act of (a) all applicable laws and regulations of Bhutan 2009 and its Regulation 2012, the Employer relating to environment, and the Water Act 2011, the Labour and health and safety Employment Act 2007 2 (b) the Environmental Safeguards; The construction is in compliance and 3 (c) all measures and requirements set following the conditions stated in the forth in the IEE, the EMP, and any Environmental Clearance corrective or preventive actions set forth in the Safeguards Monitoring Report 4 Land Acquisition and involuntary Resettlement There are no pending issues related to of Indigenous Peoples: land acquisition and involuntary The Contractor shall ensure that the Project resettlement does not have any Indigenous Peoples Safeguards and Involuntary Resettlement Safeguards impacts. In the event that the Project does not have any such impact, the Contractor shall take all steps required to ensure that the project complies with the applicable laws and regulations of the Employer and with ADB’s Safeguard Policy Statement 5 Human and Financial Resources to Implement The Contractor was made aware that Safeguards Requirements: he is responsible for implementing The Contractor shall make available provisions of the EMP, the necessary budgetary and human resources to Environmental Clearance etc. at his fully implement the EMP, any resettlement own expense. plan and any indigenous peoples’ plan 6 Safeguards Monitoring and Reporting: Contractor is aware of this requirement. The Contractor shall provide the Employer So far there have been no unanticipated with a written notice of any unanticipated impacts environmental, resettlement or indigenous peoples risks or impacts that arise during construction, implementation or operation of the Project that were not considered in the IEE, the EMP, any resettlement plan and any indigenous peoples’ plan 7

No. Compliance Requirement Status 5 Adequately record the condition of roads, There was no damage to agricultural agricultural land and other infrastructure prior land near the project area and roads to starting to transport materials and used for transporting construction construction; and material. 6 Reinstate pathways, other local infrastructure, and agricultural land to at least their pre- project condition upon the completion of construction 7 The Contractor shall Is in compliance with the Labour and Comply with all applicable labour laws and Employment Act 2007. Proper camp regulations, shall not allow employment of was found to be constructed with child labour for construction and maintenance adequate sanitation. Workers activities, encourage the employment of the interviewed during site inspections poor, particularly women, and provide seemed to be happy. appropriate facilities for women and children in construction campsites 8 Ensure that people directly affected by the There are very few locals interested in Project are given priority to be employed by jobs at the construction site. Hence, the Project Indian workers have been working with the contractor. 9 Not differentiate wages between men and There are only Indian male workers at women for work of equal value the construction site as recruitment of female foreign workers are not permitted. However, if locals are employed, there is no differentiation in wages 10 Health: First Aid kits were found to be available The Contractor shall at all times take all at the construction site office. The site is reasonable precautions to maintain the health very close to the Gelephu Hospital and and safety of the Contractor’s Personnel and other than treating simple cuts and to provide a safe work environment wounds at site, workers are taken to the hospital for any other complications, The company Bolero pickup is available at all times to transport workers to hospital etc. if needed. 11 The Contractor shall conduct health and safety The doctor from the Gelephu hospital programs for workers employed under the was invited to talk to the construction Project, and shall include information on the workers on on HIV/AIDS and sexually trafficking of women and the risk of sexually transmitted diseases. transmitted diseases, including HIV/AIDs in such programs

8

C. Compliance with the EMP

No. Compliance Requirement Status 1 Construction material and its transportation River bank boulders have been used and transportation will be arranged accordingly. 3 Only required forest or vegetation clearance Clearing of vegetation was carried out will be carried out after obtaining Forestry permits from the Territorial Forest Office, Sarpang. 4 Regular maintenance of transport vehicles Contractor maintains their vehicles at their has to be carried out to reduce the exhaust Construction site on a regular basis. Since fume pollution. some vehicles were found to move Construction materials have to be covered without a proper cover, the Contractor during transportation to minimize dust was instructed to have trucks carrying pollution construction materials to be covered to minimize dust pollution. 5 Construction and demolition of waste Construction camp sites are still being materials from existing structures will be used for the workers working on the segregated so that waste material could be passenger terminal building re-used. For example, waste timber could be reused for construction of temporary labour camps 6 Concrete waste could be used filling and No concrete waste was generated leveling the ground during construction of access roads 7 Excavated material will be stockpiled safely Excavated materials is being stockpiled in away from the streams and river beds to the runway, far from the riverside prevent soil erosion and ultimate water pollution. 8 Chemical waste from the machineries will Contractor was made aware of waste be collected and stored properly. Spent generated from machineries during ES engine oil from the equipments will be sent site visit and Monthly Progress meeting. to India for recycling and re-use 9 The contractor will provide rubbish or A garbage pit has been dug at the dustbin to temporarily store the municipal workers’ camp. wastes (or solid waste). The municipal waste will be transported and dumped at the municipal disposal site 11 Discharge of sediment laden construction No sediment laden construction water was water (e.g. from areas containing dredged produced from the construction works spoil or pumped water from foundations) directly into surface water courses will be forbidden. The sediment laden construction water will be discharged into settling ponds or tanks prior to final discharge 12 Regular spraying the work area; covering This was found to be lacking during site trucks where the haulage of material inspections in September 2015. The involves transportation. contractor was advised to sprinkle water within the project vicinity at least twice a day by water tanker. 9

No. Compliance Requirement Status 13 Good maintenance of the vehicle fleet and All tippers and excavators on are in good by immediately excluding over-aged or working condition. worn out vehicles and machinery from the construction site 14 In addition air quality will be monitored Due to absence of expertise and throughout construction phase. Parameters equipment in the project, NEC has been to be measured are dust, PM10 requested to conduct the tests when they (Suspended particulate), smoke of asphalt go for their compliance monitoring. plant, Nox and Sox 15 The operation of the asphalt plant is a Asphalt plant was found to be at least potential source of harmful emissions, 100m away from nearby streams. which may affect the human and the natural environment and the health of the workforce. The site of the asphalt plant will be at a minimum distance of 100m from any water course or settlement. 16 The potential negative impact of Noise was not a problem as the number of construction noise on the workforce should excavators and tippers working on site be generally mitigated by providing the were few and spread out across the workforce with appropriate noise protection airport area. Moreover there are no big gear such as ear plugs and by using communities located next to the airport. construction equipment that produces less noise 17 Necessary actions such as tree marking Was carried out must be carried out in accordance with the forestry rules before felling of trees for the project roads 18 The construction activities will be carried Was complied out only during day time 19 The construction workers will be provided Gumboots, helmets, raincoats and face with adequate and appropriate shelters masks were found to be provided which are wind and rainproof 20 Access to healthcare will be ensured with Workers were taken to the Gelephu provision Gelephu hospital. Hospital for any serious ailments and for checkups etc.

V. CONCLUSION

10. Overall mitigation measures given in the EMP are being implemented satisfactorily. The resettlement issue of land acquisition and impact on one household has been resolved.

11. The CSC Environmental Specialist has highlighted the importance of using water tank to control dust especially during the dry winter season within project vicinity and covering trucks transporting construction material. Monitoring of air quality in the project area is dependent on the availability of officials from NEC.

12. Other than the above minor issues, no other safeguards issues were found during the reporting period. 10 Annex 1

ANNEX 1: ENVIRONMENTAL CLEARANCES ISSUES FOR THE GELEPHU AIRPORT CONSTRUCTION Annex 1 11