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IEE: Papua New Guinea: Lae Port Development Project

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IEE: Papua New Guinea: Lae Port Development Project Initial Environmental Examination October 2011 PNG: Lae Port Development Project – Additional Works Prepared by Independent Public Business Corporation for the Asian Development Bank. CURRENCY EQUIVALENTS (as of 20 October 2011) Currency unit – kina (K) K1.00 = $0.454 $1.00 = K2.202 ABBREVIATIONS ADB – Asian Development Bank BOD – biological oxygen demand CSC Construction Supervision Consultant CSD cutter suction dredger DO – dissolved oxygen DEC Department of Environment and Conservation DMP Drainage Management Plan DOE Director of Environment EIA – Environmental Impact Assessment EIA 2009 EIA approved in principle 2009 by DOE EIS Environmental Impact Statement EMP – environmental management plan ESA – Environmental and Safety Agent (Contractors) PMU – Environmental and Social Circle Division (in PMU) ESO – Environmental and Safety Officer (in PMU) ESS – Environmental and Safety Specialist (in CSC) GOP – Government of Papua New Guinea HIV – human immunodeficiency virus IEE – Initial Environmental Examination IES – International Environmental and Safety Specialist (in CSC) IPBC Independent Public Business Corporation IR Inception Report NES – National Environmental and Safety Specialist (in CSC) NGO – non-governmental organization LPDP – Lae Port Development Project MMP – Materials Management Plan MOE Minister of Environment MRA Mineral Resources Authority PMU – Project Implementation Unit (IPBC) PNGPCL PNG Ports Corporation Limited PPE – Personal Protective Equipment REA – rapid environmental assessment RP – Resettlement Plan Spoil Unusable peaty or clay dredged material SPS – ADB‟s Safeguard Policy Statement (2009) SR – sensitive receiver TA – Technical Assistance TOR – Terms of Reference TSP – total suspended particulate TSS – total suspended solids TOR – terms of reference TTMP – temporary Drainage management plan i WEIGHTS AND MEASURES dB(A) – Decibel (A-weighted) masl – Meters above sea level km – kilometer km/h – kilometer per hour m – meter m3 – cubic meter NOTES (i) The fiscal year (FY) of the Government of Papua New Guinea ends on 31 December. (ii) In this report, "$" refers to US dollars. This 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. 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. ii TABLE OF CONTENTS 1. EXECUTIVE SUMMARY ..............................................................................1 2. POLICY AND LEGAL FRAMEWORK ..........................................................3 3. DESCRIPTION OF THE PROJECT ..............................................................5 4. DESCRIPTION OF ENVIRONMENT .......................................................... 14 5. ANTICIPATED ENVIRONMENTAL IMPACTS, MITIGATION MEASURES19 6. INFORMATION DISCLOSURE, CONSULTATION AND PARTICIPATION39 7. GRIEVANCE REDRESS MECHANISM ...................................................... 42 8. ENVIRONMENTAL MANAGEMENT PLAN ............................................... 46 9. CONCLUSIONS AND RECOMMENDATIONS ........................................... 82 FIGURES Figure 1.1 Location of Lae port Development Project Figure 1.2 Lae Port Development Additional Works Figure 3.1 Access Road and Container Yard Figure 3.2 Mai Creek Diversion Figure 3.3 Candidate sources of rock materials - West Figure 3.4 Candidate sources of rock materials - East Figure 3.5 Busu River and Mumeng Station Candidate sources of rock materials Figure 7.1 Grievance Redress Mechanism TABLES Table 2.1 Key Environmental Laws of PNG for environmental clearance Table 2.2 Environmental Regulatory Compliance Table 2.3 Relevant Employment Laws Table 3.1 Summary of Candidate Quarries ……………………… Table 6.1 Summary of Main Environmental Concerns from Public Consultation Table 8.1 Responsibilities for EMP Implementation Table 8.2 Environmental Mitigation & Environmental Performance Monitoring Plan for LPDP Table 8.3 Summary of Estimated Costs for EMP Implementation (3 years) Table 8.4 Environmental Effects Monitoring Plan for additional works for LPDP APPENDIXES Appendix A Selected Photographs Appendix B Results of Public Consultation Appendix C Sensitive Receivers Appendix D Project Implementation Schedule Appendix E Steps in developing Drainage Management Plan Appendix F International Conventions Relating to Papua New Guinea iii 1. EXECUTIVE SUMMARY Overview 1. The Government of the Independent State of Papua New Guinea (GOP) has requested the Asian Development Bank (ADB) to provide additional financing to facilitate investments to support the Lae Port Development Project (LPDP). Items financed under Additional Financing include civil works for creek diversion, access road, slope protection and obtaining rock based construction materials. These additional works were not assessed in environmental assessment for the proposals detailed in the technical assistance Lae Port Development Project Tidal Basin Phase 1 (TA 4973 PNG - the Project). The Project proposes to construct and operate a new port basin and wharf in Lae, Papua New Guinea. An environmental assessment for the Project was completed in 2007 (and approved in principle by the environmental authority in 2009). The Project is located just west of the existing Lae Port (Figure 1.1). 2. This report is the initial environmental examination (IEE) for the additional works for the Project and complies with the provisions of ADB's Safeguard Policy Statement (SPS 2009). The IEE has been carried out to ensure that the potential adverse environmental impacts of the additional works are appropriately mitigated and to present the environmental assessments for the Project. In addressing the potential adverse environmental impacts from the additional works it is clear that some of the measures that ensure the impacts are appropriately mitigated are also applicable to the main LPDP project activities and that the results of this IEE will be included in the updated EIA and EMP that are required under SPS in order to present a comprehensive analysis of the environmental assessments for the Project. 3. The objectives and scope of this IEE are to (i) assess the existing environmental conditions of the project area, (ii) identify potential environmental impacts from the proposed additional works, (iii) evaluate and determine the significance of the impacts, (iv) develop an environmental management plan (EMP) detailing mitigation measures, monitoring activities, reporting requirements, institutional responsibilities and cost estimates to address adverse environmental impacts, and (v) carry-out public consultations to document any issues/concerns and to ensure that such concerns are addressed in the project design. This IEE is submitted to ADB by the borrower and the final IEE report will be disclosed to the public through the ADB website and to the public in Papua New Guinea by PMU. 4. Project Description. The new tidal basin for the LPDP will upgrade the port‟s existing facilities and will be excavated in the coastal marshland to the west of the present shipping wharf and the Markham River. The facilities that have already been subject to environmental assessment are (i) the tidal basin (about 700m long and 400m wide) dredged to a depth of 13m below chart datum (ii) a multipurpose wharf (240m long and 45–50 m wide) and (iii) buildings, container storage area, internal roads, drainage, water supply, electrical, and sewerage services. The estimated project construction will be started in 2012 and will be completed in 2014. 5. The proposed additional works are in the form of creek diversion, access road and associated facilities to obtain rock based construction materials. The creek diversion will be within an area demarcated for use by PNGPCL as the LPDP area and the access road is immediately to the east of the LPDP Area. 6. The design of the slope protection has been modified such that large quantities of rock material will be required as the primary and secondary layers of rock armour for the tidal basin wall slopes. Therefore quarry stone is now considered as a major construction material for the Project. For reclamation of the future port areas, suitable 1 dredged material will be used. The quantities of suitable material dredged will be in excess of the quantity required for port development. Surplus material for construction will be stored in reclamation areas. Rock based materials in the form of sand and gravel will be obtained from the usable portion of the dredged material from the tidal basin. Larger rock based materials, stones, cobbles and boulders will be brought in from sources near Lae; yet to be confirmed. 7. Categorization. The project additonal works are classified as Category B in accordance with ADB's Safeguard Policy Statement (2009), as no significant impacts are envisioned. The greater Project is environment Category A. The EIA was carried out (circa 2006-2007) approved in 2007 by ADB and by the environmental authority, Director of Environment (DOE) in Department of Environment and Conservation (DEC) in PNG in 2009. The results of this IEE will be integrated with the results of the EIA and an updated EIA and EMP will be compiled by the PMU and approved by ADB. 8. This IEE focuses on the key physical
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