Initial Environmental Examination Report (Draft) Project Number: 51152-001 December 2018 BAN: Second PRAN Agribusiness Project Part 2 Prepared by Sylvan Agriculture Limited The initial environmental examination is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. Your attention is directed to the “Terms of Use” section of this website. 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. Initial Environmental Examination (IEE) of PRAN potato chips, Pasta and Flakes project CHAPTER ONE: INTRODUCTION 1. INTRODUCTION 1.1 Introduction “PRAN” is the largest business group in Bangladesh, established in 1981. Currently “PRAN” is one of the most admired foods and beverages brand among the millions of people of Bangladesh and other countries of the world where PRAN products are regularly being exported to different countries of the world. PRAN is currently producing Juices, Drinks, Mineral Water, Bakery, Carbonated Beverage, Snacks, Culinary, Confectionary, Biscuit, Dairy, Health Food Drink, Breakfast and Refreshment, Rehydration, Frozen Food and Kernel Sunflower Oil. All the PRAN products are produced as per international standard maintaining the highest level of quality during its production processes. PRAN started its successful journey to export market since 1996 and currently exports to over 118 countries. 1.2 Background of the Project The PRAN agribusiness project is going to establish a new PRAN Potato Chips, Pasta and Flakes Project inside of the Habiganj Industrial Park (HIP) under Sylvan Agriculture Limited (SAL), a subsidiary of PRAN Group. The proposed project will be established inside of the HIP of Olipur, Habiganj District, Bangladesh. The project is interested in taking project finance from the Asian Development Bank (ADB), which requires an environmental and social assessment in line with the environmental and social requirements of these lenders as well as the national regulatory requirements in Bangladesh. PRAN Group has therefore initiated the Initial Environmental Examination (IEE) study to comply with the IEE guidelines of the GOB and the Safeguard Policy Statement (SPS) of the ADB. 1.3 Location of the Proposed Project The proposed project will be located inside of the Habiganj Industrial Park (HIP). The HIP is administratively situated in the Nurpur Union under Habiganj Sadar Upazila of Habiganj District, Bangladesh. The absolute location of the proposed PRAN real potato chips, Pasta and Flakes project is 24°16'28.60"N Latitude and 91°23'3.94"E Longitude. The northern site of HIP is covered by Surabahi, Shailjura and Gayerpur village; industries of the Square group (Square denim and Shahjibazar power station) on the South; Sachiura, Noagaon, Dushashan village on the West and Olipur village, Dhaka-Sylhet Highway, Dhaka-Sylhet Railway and Hilly areas are located on the East side. A location Map of the proposed project site is presented in Figure 1-1. This project is situated about 120 KM far from the capital city Dhaka. www.eqmsbd.com Sylvan Agriculture Limited 1 Ref: # 0017820106 March 2017 Initial Environmental Examination (IEE) of PRAN potato chips, Pasta and Flakes project Figure 1-1: Location Map of proposed Project Site Source: EQMS 1.4 Objective of the Study The objectives of this IEE is to ensure that the project compiles with ADB Safeguard Policy Statement (2009) and other social dimension requirements as well as with that of the Government of Bangladesh (GoB), which may serve as input in the design of the project being prepared for possible financing by the ADB. The reference framework for IEE study will therefore, follows the following standards/guidelines: Applicable Bangladesh National, Regional and Local regulatory requirements; ADB’s Safeguard Policy Statement (SPS); ADB Social Protection Strategy; ADB’s Public Communications Policy; The IFC Performance Standards for Environmental and Social Sustainability; The IFC General EHS Guidelines; and IFC EHS guidelines for Food and Beverage Processing Industry, 2007. 1.5 Approach and Methodology for the IEE Study The IEE study is undertaken by EQMS following a standard Impact Assessment Approach comprising the stages of Screening, Scoping, Environmental and Social Baseline data collection, Impact assessment and management. EQMS approach and methodology for the study is given in following Figure 1-2. www.eqmsbd.com Sylvan Agriculture Limited 2 Ref: # 0017820106 October 2017 Initial Environmental Examination (IEE) of PRAN potato chips, Pasta and Flakes project Figure 1-2: Approaches for the IEE study Source: EQMS The stages of Screening and Scoping was undertaken during the initial stage of the project, comprised of the understanding of the proposed project, alternative analysis and identification of legal and regulatory requirement that are applicable for the proposed project. The EQMS team had a brief introduction meeting with the PRAN-RFL officials on 07/01/2017 at Habiganj Industrial Park (HIP) prior to site reconnaissance visit. EQMS undertook 3 days (07/01/2017 to 09/01/2017) site visit to understand the site setting, environmental and social sensitivities and to identify the relevant local stakeholders. www.eqmsbd.com Sylvan Agriculture Limited 3 Ref: # 0017820106 October 2017 Initial Environmental Examination (IEE) of PRAN potato chips, Pasta and Flakes project 1.5.1 Screening The following processes were involved in the screening process: Review of proposed project related activities and their impacts on different environmental components; Identification of environmental and socially sensitive issues and receptors that are located in the surrounding area; Categorization of the project as per the Environment Conservation Rules (ECR), 1997 of the Government of Bangladesh (GoB); and Asian Development Bank (ADB) guidelines. 1.5.2 Scoping The proposed study is an Initial Environmental Examination (IEE) study and does not required the screening and scoping, but EQMS conduct a scoping study at the primary stage of the project in order to identify and assess the key environmental issues that are closely associated with the project activities. The scoping report is given in Annex-E. 1.5.3 Environmental Baseline Data Collection Primary environmental baseline data has been collected by EQMS through primary monitoring and surveys of the study area of 5 km radius as the project site. Secondary information through literature review was also collected for the study area. The baseline study included the following: Reconnaissance survey of the Project site and surrounding area of the proposed project site to establish dominant features of the biophysical and social environments; The primary environmental baseline data was collected with respect to ambient air quality, surface water quality, groundwater quality, soil characteristics, ambient noise level and ecology; Information on geology, physiography, topography, meteorological conditions, water and ecological resources, hydrology and drainage, natural hazards and risks of the area, socio- economic status etc. was collected from secondary sources. 1.5.4 Social Baseline Data Collection The project site is located in Nurpur Union of Habiganj Sadar Upazila in the Habiganj district of Bangladesh. The detailed of the project location showing in a map is given in Figure 1-1. The area of influence of the project comprises of the project site along with the surrounding area, where the influence of project activities is anticipated. Under the project, a four-storied building will be constructed within the existing Habiganj Industrial Park (HIP). For constructing the building, the land requirement will be met through the additional land available in the HIP. It is anticipated that the impact of the project on the surrounding community will be minimal and will be restricted within 2 km of the project site. The social baseline for the study area has been established on the basis of the reconnaissance site visits, stakeholder consultations and review of available secondary data from different organisations. Secondary Information Review: Readily available secondary information was collected for following aspects: a) Physical Environment Regional setting . Geography and Geomorphology . Physiography . Land use . Geology and soil www.eqmsbd.com Sylvan Agriculture Limited 4 Ref: # 0017820106 October 2017 Initial Environmental Examination (IEE) of PRAN potato chips, Pasta and Flakes project Climate and Meteorology . Climatic pattern . Temperature . Relative humidity . Rainfall . Regional wind patterns (wind speed & direction) Hydrology and water use Natural Hazards . Seismic activities . Seasonal storms & cyclones, tornadoes . Riverbank erosion . Drought b) Socio-economic Environment Demographic profile Education & literacy Economic activities & livelihood pattern Socio-economic Infrastructure & Indicators . Health care facilities . Education facilities . Drinking water & sanitation . Agriculture . Transportation facilities . Sites of cultural/archaeological importance Few of the identified sources for collecting secondary data include the following: Bangladesh Meteorological Department (BMD) at Dhaka; Department of Environment (DoE); Bangladesh