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Draft Initial Environmental Examination - Updated March 2010 Draft Initial Environmental Examination Updated August 2012 ________________________________________________________________________________________ Bhutan: Urban Infrastructure Development Project Project Number: 38049 Prepared by K.D Chamling, Environment Engineer, Project Management Consultants Department of Urban Development and Engineering Services, Ministry of Works and Human Settlement, Thimphu 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 Asian Development Bank Table of Contents _ Section Page I. INTRODUCTION ............................................................................................................ 1 II. DESCRIPTION OF THE PROJECT ................................................................................ 1 A. PROJECT TYPE ................................................................................................... 1 Infrastucture .......................................................................................................... 1 B. PROJECT CATEGORY ....................................................................................... 1 C. NEED FOR THE PROJECT .................................................................................. 1 D. PROJECT SCOPE ............................................................................................... 1 E. PROJECT COMPONENTS IN THIMPHU ............................................................. 2 F. PROJECT COMPONENTS IN PHUENTSHOLING ............................................... 5 G. PROJECT COMPONENTS IN DAGANA .............................................................. 5 H. INSTITUTIONAL DEVELOPMENT COMPONENTS ............................................. 6 I. COST ESTIMATES .............................................................................................. 7 J. PIGGY-BACKED ADVISORY TA .......................................................................... 7 K. IMPLEMENTATION ARRANGEMENTS .............................................................. 8 III. DESCRIPTION OF THE PROJECT ENVIRONMENT .................................................... 8 A. PHYSICAL ENVIRONMENT ............................................................................... 8 B. ECOLOGICAL ENVIRONMENT ...................................................................... ..12 IV. SCREENING OF POTENTIAL ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES ................................................................................................................. 15 V. INSTITUTIONAL REQUIREMENT AND ENVIRONMENTAL MONITORING PLAN ..... 26 A. INSTITUTIONAL ARRANGEMENTS ................................................................ 26 B. APPROACH AND RATIONALE FOR MONITORING ....................................... 27 C. EXISTING CAPACITIES AND TRAINING REQUIREMENTS FOR MONITORING . 28 D. MONITORING PLAN ........................................................................................ 29 VI. PUBLIC CONSULTATION & INFORMATION DISCLOSURE ...................................... 33 VII. FINDINGS AND RECOMMENDATIONS ...................................................................... 35 VIII. CONCLUSION ............................................................................................................. 37 ATTACHMENT 4A ..................................................................................................................... 38 COMPLIANCE WITH NATIONAL LEGISLATION FOR ENVIRONMENTAL CLEARANCE AND MANAGEMENT ATTACHMENT 4B …………………………………………………………………………............43 ENVIRONMENTAL MANAGEMENT PLANS FOR THE PROJECT TOWNS ATTACHMENT 4C ..................................................................................................................... 55 STRATEGY AND OUTLINE OF A PUBLIC AWARENESS RAISING PROGRAM ATTACHMENT 4D ..................................................................................................................... 59 RECORDS OF PUBLIC CONSULTATIONS I. INTRODUCTION 1. The Urban Municipal Development Project (UMDP) will improve priority urban infrastructure and urban services in Thimphu City, Phuentsholing City and Dagana Town, such that the existing environmental situation is improved and that the capacity of existing infrastructure is upgraded to cope with ongoing expansion. This is to be achieved by (i) improving urban infrastructure planning; (ii) constructing urban roads, drainage, other urban facilities; (iii) increasing water treatment, supply, and sanitation coverage; (iv) enhancing community awareness on proper hygiene; and (v) providing capacity building trainings in urban facility management to staff of project cities and towns, and Ministry of Works & Human Settlement (MoWHS). Expansion in towns around the country is taking place both as a result of population growth and of rural to urban migration. Priority infrastructure to be developed or upgraded includes roads, drainage, water supply, wastewater collection and treatment, and solid waste management. The project is directly aimed at sustained improvements in the urban environment. 2. Although substantial environmental improvements will result from the project, there are potential adverse impacts associated with location, design, construction and operation of the proposed infrastructure. This IEE examines the potential impacts and identifies mitigation measures to order to avoid adverse impacts and maximize beneficial impacts to the extent possible. The IEE is prepared according to the ADB’s Environmental Assessment Guidelines, 2003. Requirements for the Environmental Assessment of projects in Bhutan are set out in the Environmental Assessment Act, 2000. In addition, certain clearance is required for activities that will be carried out under the project .Requirements for compliance with the Act are in detail in Attachment A. II. DESCRIPTION OF THE PROJECT A. Project Type 3 Infrastructure. The project will consist of improvements of selected urban infrastructure. The environmental screening process has therefore followed the checklist for roads projects given in the ADB Environmental Guidelines for Selected Infrastructure Projects. Checklists provided in Environmental Assessment Guidelines (2003). B. Project Category 4 Category B. The appropriate category for these roads according to the ADB's classification is B. C. Need for the Project 5 The project towns are vulnerable to the effects of unplanned urban expansion, fuelled by both population growth and rural-urban migration, notably the build-up of wastes, poor traffic circulation and poor public health. Planned expansion and improvement of existing urban infrastructure is necessary to guard against these risks, and in managerial capacities, are required to ensure both maintenance and continued expansion of the infrastructure. The project seeks to provide priority infrastructure to minimize these effects and to support the City Corporations of Thimphu and Phuentsholing, and the Dzongkhag Administration in Dagana, as well as foster improvements and legal and policy development will enhance capacities. D. Project Scope 6 The Project will have five components. Component A: Thimphu Urban Improvement will include (i) city-level works consisting of water supply source augmentation, treatment and distribution; upgrading of the existing waste water treatment plant; and provision of solid waste management 1 infrastructure and equipment; and (ii) local area-level urban infrastructure provision in four, out of the five new local areas of southern Thimphu currently being developed by TCC. Component B: Phuentsholing Urban Improvement will include (i) roads and drainage; (ii) footpaths and pedestrian bridge; and (iii) social infrastructure such as fire hydrants and street lighting. Component C: Dagana Urban Improvement will include (i) water supply source augmentation, treatment and distribution system improvement; (ii) sanitation improvement; and (iii) roads and drainage provision. Component D: Technical Support will include (i) Capacity building to improve operational efficiencies of project cities and Dagana Dzongkhag; and (ii) Public awareness support. Component E: Project Implementation Support will include (i) Consulting services for Project Management Unit (PMU); and (iii) Consulting services to support Project Implementation Units (PIUs) for Design, Monitoring, and Supervision. E. Project Components in Thimphu 7 The work to be undertaken in Thimphu is based on the 10 Local Area Plans (LAP) developed by TCC. The work involves a combination of infrastructure, utility services, environmental consideration and social issues. The selection process, in conjunction with TCC, narrowed down the project areas to 4 LAPs. The selection of the priority works was then made based on the TCC Urban Corridor strategy also with regard to environmental criteria, which were prioritized according to the most important environmental issues with emphasis on the alleviation of waste accumulation problems. The construction strategy involves constructing all services (roads, drainage, water reticulation, sewerage collection system, power and communications) along the corridors selected to that retrospective construction, and hence digging up of the new roads, is avoided. Also included are works to expand and improve essential services (defined as City Level Works) are required

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