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Initial Environmental Examination Report for Organic Farming: Cambodia

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Initial Environmental Examination Report for Organic Farming: Cambodia ` August, 2014 AKAY Flavours and Aromatics Pvt. Ltd. Initial Environmental Examination Report for Organic Farming: Cambodia Organic Farming, Cambodia: Akay Cambodia Private Limited Submitted to Asian Development Bank ` Initial Environmental Examination Report for Organic Farming: Cambodia Prepared for Asian Development Bank (ADB) Prepared by AECOM India Private Limited www.aecom.com August, 2014 © AECOM The information contained in this document is solely for the use of the client identified on the cover sheet, and for the purposes specified herein. AECOM accepts no responsibility and undertakes no duty to any third party who may rely on this document. All rights reserved. No section or element of this document may be removed from this document, reproduced, electronically stored, or transmitted in any form without the written permission of AECOM. Quality Information Document IEE Report for Organic Farming: Cambodia Ref DELD13148 Date 07/08/2014 Prepared by Amit Goswami Reviewed by Ajay Pillai Susan Vauquelin ` Contents A. Executive Summary ......................................................................................................................... 6 B. Policy, Legal and Administrative Framework .................................................................................. 9 B1 Applicable National Regulatory Acts and Notifications to Akay Cambodia ............................ 9 B2 Regulatory Framework for Involuntary Resettlement and Rehabilitation ........................... 10 B3 Regulatory/Legal Policy Framework for Indigenous Peoples ............................................... 12 C. Description of Akay Operations: Current and Proposed Facilities................................................ 14 C1 About Akay ............................................................................................................................ 14 C2 About the Report .................................................................................................................. 15 C2 Akay Current and Proposed Operations in Cambodia .......................................................... 15 D. Description of Environment and Socio-Economic Baseline .......................................................... 16 E. Anticipated Environmental Impacts and Mitigation Measures .................................................... 27 E1 Pre-Construction Stage and Mitigation Measures .................................................................... 27 E2. Construction Stage Impacts and Mitigation Measures ......................................................... 28 E3. Operation Stage Impacts and Mitigation Measures ............................................................. 29 F. EHS Performance Standards/Requirements ................................................................................. 31 G. Analysis of Alternatives ................................................................................................................. 31 G1 No project scenario ............................................................................................................... 31 G2 Equipment layout and selection of machinery ..................................................................... 31 G3 Alternative site analysis ........................................................................................................ 32 H. Information Disclosure and Consultation ..................................................................................... 32 I. Grievance Redress Mechanism ..................................................................................................... 32 J. Environmental and Social Management Plan ............................................................................... 33 J1. Environmental Mitigation Measures ......................................................................................... 33 J2 Environmental Enhancement Measures ................................................................................... 44 J3 Operation Stage Environmental Monitoring............................................................................ 44 J4 Budgetary Cost Provision for EMP Implementation ................................................................. 44 K. Conclusion and Recommendations............................................................................................... 45 ` List of Figures: Figure C-1: Indicative Location Map of Akay Organic farm in Cambodia Figure D-1: Akay Organic farm in Cambodia Figure D-2: Cambodia Infrastructure Indicative road, railways and airport connectivity with Samlout District Figure D-3: Precipitation and Monsoon Airflow Map: Cambodia Figure D-4: River Basin Map: Cambodia Figure D-5: Protected Area and Land use Map of 2001: Cambodia Figure D-6: Land Use pattern: Cambodia-2010 Figure D-7: Archaeological Structures: Cambodia Figure D-8: Ethnic Groups: Cambodia Figure D-8: Soil Type: Cambodia List of Tables: Table 1: Details of crops cultivated in organic farms of Akay Cambodia, Battambang Province, Cambodia Table 2: Applicable Environmental Regulatory Permitting Requirements Table 3: Environment Management Plan for Akay Cambodia Table 4: Indicative Budgetary Cost for Implementation of Environment Management Plan List of Annexure: A: Details of Land Sellers B: Sample Letter of Land Authority C: Sample Letter of Change in Land Authority D: Sample Sale Deed Document of Land E: Payment Records made to Land Owners F: Letter of Consent from Mr. Sen Matthew to Akay Cambodia Pvt. Ltd. ` List of Abbreviations ADB Asian Development Bank DG Diesel Generator EHS Environment Health & Safety EHSS Environment Health Safety and Social EIA Environment Impact Assessment EMP Environment Management Plan ETP Effluent Treatment Plant GHS Globally Harmonized System GOC Government of Cambodia GRM Grievance Redressal Mechanism Ha Hectares HR Human Resources IEE Initial Environment Examination IFC International Finance Corporation IP Indigenous Peoples Kgs Kilograms KLD Kilo Litre per day KW Kilowatt LA Land Acquisition mbgl metres below ground level MOWRAM Ministry of Water Resources and Meteorology MT Metric Ton NH National Highway PPE Personal Protective Equipment PUC Pollution Under Control SPS Safeguard Policy Statements USD United States Dollars WHO World Health Organisation Initial Environmental Examination Report for Organic Farming: Cambodia ` A. Executive Summary 1 Akay Group, established in 1995, is engaged in the manufacture of paprika and spices oleoresins, natural essential oils, and natural colours for global food industry. 2 Akay is presently seeking financial assistance from Asian Development Bank (ADB) for expansion of its existing organic farms located at Cambodia (Battambang Province) for the following activities i. drip irrigation systems for rubber, black pepper, turmeric, cocoa and dragon fruits; ii. extension of black pepper cultivation, and iii. expansion of drying yard iv. Development of an oleoresin extraction plant in Cambodia (which will be the subject of a subsequent IEE) 3 Akay Cambodia Private Limited (hereinafter referred as Akay Cambodia) forms the supply chain partner of Akay group operations. Akay Cambodia operations primarily include organic farming in Cambodia. 4 Currently, Akay Cambodia has occupied 717 hectares of agricultural farm land for undertaking organic farming in Prey Thum Village which is located in the Kampong Lpou Commune Samlout District in Battambang Province in north-western Cambodia (hereinafter referred as “organic farm”). At present cultivation of black pepper, turmeric, rubber, dragon fruit, cocoa, tapioca and maize is carried out in 295.25 hectares of the existing 717 hectares land. The key operations in the organic farm include cultivation of crops, nursery, sun drying of the produce from farming activities, storage of solar dried produce in a warehouse (located within the farm) and minor repairs or maintenance works of farm equipments and vehicles (like trucks for transport of material, tractors, excavators, road rollers, etc.). 5 The details of area cultivated under different crops is provided in the Table 1 below: Table 1: Details of crops cultivated in organic farms of Akay Cambodia, Battambang Province, Cambodia S.No. Name of Crops Cultivated Current Area Planted (in hectares) 1 Black pepper 2.75 2 Turmeric 26 3 Rubber 236.5 4 Dragon Fruit 5 5 Cocoa 25 6 Tapioca 10 7 Maize 25 6 Initial Environmental Examination Report for Organic Farming: Cambodia ` Total Area Cultivated 295.25 6 As per Article 2 of the Sub- Decree #72, Environment Impact Assessment Process dated 11th August, 19991 (hereinafter referred as EIA Process, 19992), Initial Environment Impact Assessment and Environment Impact Assessment study is required for every proposed project and activities and existing and in-process, private, joint-venture and public projects that are listed in an Annex of EIA Process, 1999. 7 Agricultural activities undertaken in area greater than or equal to 10,000 hectares, as listed in Item number 4 of Category B of Annex under the said Sub Decree require IEIA or EIA approval from Ministry of Environment, Cambodia. As the area required for Akay Cambodia is only 717 ha therefore, the requirement of approval of Initial Environment Impact Assessment (IEIA) or EIA study under EIA Process, 1999 is not triggered and hence operations do not require an EIA study and associated approval. 8 This IEE has been prepared as per the requirements of ADB Safeguard Policy Statement (2009). It identifies the
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