50099-003: Fourth Greater Mekong Subregion Corridor Towns

Environmental Monitoring Report

1st Semestral Report May 2020

Lao PDR: Fourth Greater Mekong Subregion Corridor Towns Development Project

Prepared by the Project Coordination Unit of Department of Housing and Urban Planning for the Ministry of Public Works and Transport, Lao PDR and the Asian Development Bank.

This environmental 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.

Lao People’s Democratic Republic Peace Independence Democracy Unity Prosperity

Ministry of Public Works and Transport Department of Housing and Urban Planning

Fourth Greater Mekong Sub-Region Corridor Towns Development Project (ADB Grant No. 0606)

Semi-Annual Environmental Safeguard Monitoring Report March – December 2019

Prepared by the Project Coordination Unit of Department of Housing and Urban Planning for the Ministry of Public Works and Transports and the Asian Development Bank.

NOTE: In this report, "$" refers to US Dollars

This environmental safeguard 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.

TABLE OF CONTENTS

I. EXECUTIVE SUMMARY ...... 1

A. SUMMARY ...... 1 B. PLANNED ACTIONS FOR SUCCEDING MONITORING PERIOD ...... 1 II. PROJECT AND GENERAL SAFEGUARDS OVERVIEW ...... 2

A. PROJECT BACKGROUND ...... 2 B. PROJECT ENVIRONMENTAL CATEGORIZATION ...... 5 C. PROJECT PROGRESS ...... 6 D. ENVIRONMENTAL SAFEGUARD PLAN IMPLEMENTATION ARRANGEMENTS ... 6 E. STATUS OF ENVIRONMENTAL SAFEGUARDS DOCUMENTS ...... 10 III. ENVIRONMENTAL PERFORMANCE MONITORING ...... 10

A. STATUS OF EMPs’ IMPLEMENTATION IN PAKSAN AND THAKHEK ...... 10 B. BASELINE ENVIRONMENTAL QUALITY SURVEY ...... 10 IV. PUBLIC CONSULTATION MEETINGS ...... 11

V. GRIEVANCE REDRESS MECHANISM ...... 11

VI. CONCLUSIONS ...... 12

VII. APPENDICES ...... 13

APPENDIX 1: LIST OF PHOTOS OF PUBLIC CONSULTATION MEETINGS ...... 13

APPENDIX 2: LIST OF PARTICIPANTS OF PUBLIC CONSULTATION MEETINGS ...... 16

LIST OF TABLES Table 1: Subproject Details in Paksan ...... 3 Table 2: Subproject Details in Thakhek ...... 4 Table 3: Actual accomplishment of Subprojects as of 31 December 2019 ...... 6

LIST OF FIGURES

Figure 1: Subprojects located in Paksan Town ...... 4 Figure 2: Subprojects located in Thakhek Town ...... 5 Figure 3: Project Organization Structure ...... 7 Figure 4: PCU Organization Structure ...... 8 Figure 5: PIU Paksan Organization Structure ...... 9 Figure 6: PIU Thakhek Organization Structure ...... 9

I. EXECUTIVE SUMMARY

A. SUMMARY

1. The discussion below presents the summary description of the status of implementation of the environmental safeguards and the environmental monitoring activities for the period March 2019 to 31 December 2019. a. Public Consultation Meetings for Municipal Solid Waste Subprojects of Paksan and Thakhek Towns were conducted from 22 to 27 August 2019, attended by total of 166 participants, including 100 females from 3 villages (Na Doan, Na Bouap and Na Sommor). The purpose and contents of these public consultation meetings were to collect all relevant documents and related data for the subprojects; to discuss and agree on the plan and procedures for updating the IEE and EMP for Subprojects and conduct a site visit to all proposed subproject sites and discuss the preparation of the plan for Baseline Environmental Quality Survey and the Environmental Monitoring which was expected conducted in March 2020. b. The Initial Environmental Examination (IEE) reports with Environmental Management Plans (EMP) for Municipal Solid Waste Subprojects of Paksan and Thakhek Towns were prepared and submitted to PCU for review and comments. These IEEs and EMPs are expectedly finalized and updated in early 2020 and submitted to PCU for approval and ADB for NOL. c. Grievance Redress Mechanism has been established. Dissemination of the information and grievance forms were made during the provincial and village consultation meetings. There are three consecutive levels to facilitate grievance mediation and resolution, with the lowest level being the Grievance Committee at village level and the highest level being the People’s Supreme Court at National level. Nevertheless, affected people are entitled to lodge complaints regarding any aspect of the subproject preparation and implementation, without prejudice to their right to file complaints with the court of law at any point in the process.

B. PLANNED ACTIONS FOR SUCCEEDING MONITORING PERIOD

2. The following activities is planned for the next monitoring period for the Project: a. Continue to finalize and update the IEE and EMP for Municipal Solid Waste Subprojects of both Paksan and Thakhek to submit to PCU for approval and ADB for NOL.

b. Continue to prepare IEE and EMP reports for remaining subprojects based on approved DEDs for both Paksan and Thakhek Towns. c. Continue with the regular daily, monthly, and quarterly environmental safeguards monitoring as per approved IEEs and EMPs of the sub-projects. d. Conduct of the Baseline Environmental Quality (BEQ) survey for groundwater and surface water, and ambient noise and dust monitor at all Subproject sites. e. Conduct the 2nd Public Consultation Meetings for Stormwater Drainage Subprojects in Paksan and Thakhek. f. Regularly update quarterly environmental report and start preparing inputs to the next semi-annual environment monitoring report for the period January to June 2020.

II. PROJECT AND GENERAL SAFEGUARDS OVERVIEW

A. PROJECT BACKGROUND

3. The Government of Lao People's Democratic Republic (Lao PDR), with assistance from the Asian Development Bank (ADB), is implementing the Fourth Greater Mekong Sub-region (GMS) Corridor Towns Development Project under ADB Loan 0606-Lao. The 2 towns in this project, Paksan of Bolikhamxay Province and Thakhek of Khammouane Province, are located along the Greater Mekong Subregion (GMS) Central Corridor. 4. The will finance the: (i) construction of sewerage networks and eight small-scale wastewater treatment plants (SWTP) to improve sanitation; (ii) construction of two controlled landfills and solid waste collection vehicles for municipal waste to improve waste collection and management; (iii) improvement of drainage and riverbank protection; (iv) rehabilitation of the oldtown center at Thakhek to promote regional tourism; and (v) preparation of city master plans to promote regional economic connectivity. 5. The Ministry of Public Works and Transport (MPWT), along with its Department of Housing and Urban Planning (DHUP), is the executing agency (EA). At the provincial level, the Department of Public Works and Transport (DPWT), assisted by the Project Implementation Units (PIUs) for Paksan and Thakhek subprojects, are the implementing agencies (IAs). 6. The Grant signed on 16 October 2018 and will close on 30 June 2024. The total project cost is about US$54.06 million, financed by an ADB Grant of US$48 million and a government counterpart of about US$6.06 million. The outputs of the project are (i) urban environmental infrastructure improved and (ii) Institutional effectiveness improved. 7. The project consists of 09 subprojects; 4 in Paksan Town, Bolikhamxay Province, and 5 in Thakhek Town, Khammouane Province (see Table 1 & Table 2 for subprojects in each town). 2

Table 1: Subproject Details in Paksan

Subprojects Description Storm water drainage - Four trunk drains (lines A to D): total length 3,772m; catchment area of improvement 556.05 ha - Road drains for 8 existing small roads: total length 7,812m, measuring area of 313.4 ha Small-scale - Five DEWATS units located at: wastewater treatment - DEWATS A: Hospital: service area 36,654m2, volume of wastewater system (DEWATS) 112.9m3/day for treatment of - DEWATS B1: Old town: service area 475,777m2; volume of wastewater black water only 198.9m3/day - DEWATS B2: Old Town: service area 475,777m2; volume of wastewater 162.7m3/day - DEWATS C: Paksan South: service area 404,049m2; volume of wastewater 100.1m3/day - DEWATS D: Paksan North: service area 427,540m2; volume of wastewater 198.9m3/day - Free household connections (607 households, 1 hospital, 17 institutional buildings, 10 schools, 1 market) Paksan municipal - Controlled landfill, volume of 226,086 m3 compacted waste over 20 years solid waste controlled - Waste collection and compaction vehicles and crane for handling landfill recyclables Riverbank protection Two sections: along San River - Section No.1: 950m length joining the two existing stretches south of the road bridge - Section No.2: 400m length north of the road bridge (over San river) Source: Updated by PIC as of December 31, 2019

Figure 1: Subprojects located in Paksan Town

Source: Updated by PIC as of December 31, 2019

Table 2: Subproject Details in Thakhek

Subprojects Description Storm water drainage - Five new trunk drains (lines 1A, 1B, 3, 4A and 5): total length 10,952m; improvement catchment area of 780.23 ha - Four pumping stations: H. Nangly, G. Nangsoad, H. Sakham and H. Simang Small-scale Four DEWATS units located at: wastewater treatment - ZONE B Hospital B1: service area 68,303 m2, volume of wastewater system (DEWATS) 179.9 m3/day for treatment of black - ZONE B Hospital B2: service area 155,000 m2, volume of wastewater water only 137.5 m3/day - ZONE C: Km3 Market: service area 115,550 m2; volume of wastewater 114.1 m3/day - ZONE D Bus Station: service area 28,041 m2; volume of wastewater 57.3 m3/day - Free household connections (1,937 people, 1 hospital, 1 bus station, 1 market) Thakhek municipal - Controlled landfill, volume of 307,721 m3 compacted waste over 20 years solid waste controlled - Waste collection and compaction vehicles and crane for handling landfill recyclables Riverbank protection Five sections: along Mekong River - Section A: 850 m length, inside Thakhek center - Section B: 1,000 m length, to the North of this section continue up to the location of the intake for the town water supply 4

- Section C: 1,784 m length, to the south of the town, towards That Sikhottabong Temple - Section D: 400 m length, South of That Sikhottabong temple - Section E: (new) 130 m length, in front of DONRE Thakhek urban, - Renovation of central town square renewal heritage - Renovation of old post office building conservation - Signage and wayfinding hardware Source: Updated by PIC as of December 31, 2019

Figure 2: Subprojects located in Thakhek Town

Source: Updated by PIC as of December 31, 2019

B. PROJECT ENVIRONMENTAL CATEGORIZATION

8. The updated IEE prepared during detailed design phase confirms that the project is category “B” in accordance to ADB’s Safeguard Policy Statement (2009). The updated IEEs confirm the identified potential impacts are largely restricted to construction-related disturbances such as noise, dust, erosion, surface water sedimentation, solid and liquid waste pollution, increased traffic and risk of worker and public injury for most of subprojects and operation phase for landfill subprojects, which has environmental impacts such as dust and odor, litter dispersal, health and safety risks etc. which can be exacerbated by poor site management. However, it is confirmed that all these impacts are reversible and site specific and can easily be mitigated to acceptable levels through sound implementation of the EMP.

9. According to the National Environmental Protection Law (2012), development projects and operations that have or will have the potential to affect the environment shall require environmental assessment. Ministry of Natural Resources and Environment (MONRE) is responsible for environmental management and monitoring and the issuance of an Environmental Compliance Certificate (ECC), which is issued after approval of IEE or Environment. According to relevant national Ministerial Instructions on IEE and ESIA the project is categorized in Group 1, which requires conducting IEE process. The draft IEEs had been provided to the PCU and PIUs.

C. PROJECT PROGRESS

10. The progress of implementation of the sub-projects as of 31 December 2019 is presented in Table 3 below. Table 3: Actual accomplishment of Subprojects as of 31 December 2019

Detailed Engineering Topography and Geology Survey Pre-design Design and Cost No. Subproject Estimates Survey Draft Final Draft Final Draft Final Report Report Report Report Report Report Completion Progress 88.89% 66.67% 66.67% 44.44% 44.44% 22.22% 22.22% 1 PS-CW03/Lot1 – Paksan Municipal Completed Completed Completed Completed Completed Completed Completed Solid Waste 2 PS-CW03/Lot2 – Thakhek Municipal Completed Completed Completed Completed Completed Completed Completed Solid Waste 3 DR-CW01/Lot1 – Paksan Stormwater Completed Completed Completed Completed Completed On-going Not yet Drainage 4 DR-CW01/Lot2 – Thakhek Stormwater Completed Completed Completed Completed Completed On-going Not yet Drainage 5 DEWAT-CW02/Lot1 - Paksan DEWATS Completed Completed Completed Ongoing Not yet Not yet Not yet units 6 DEWAT-CW02/Lot2 – Thakhek DEWATS Completed Completed Completed Ongoing Not yet Not yet Not yet units 7 RB-CW04/Lot1 – Paksan Riverbank Completed Ongoing Not yet Not yet Not yet Not yet Not yet protection 8 RB-CW04/Lot2 – Thakhek Riverbank Completed Ongoing Not yet Not yet Not yet Not yet Not yet protection 9 TK-CW05:Thakhek Urban Renewal, Not yet Not yet Not yet Not yet Not yet Not yet Not yet heritage conservation

D. ENVIRONMENTAL SAFEGUARD PLAN IMPLEMENTATION ARRANGEMENTS

11. Executing Agency (EA). The Ministry of Public Works and Transport (MPWT) is the Executing Agency (EA) for the project and will take overall responsibility for successful implementation of the EMP.

Figure 3: Project Organization Structure

12. Project Coordination Unit (PCU). The EA has established a Vientiane-based Project Coordination Unit (PCU) within the Department of Housing and Urban Planning (DHUP), among other things, will provide Safeguards and Monitoring Coordination for the EMP. PCU will also keep in regular contact with, PIUs, Department of Natural Resources and Environment (DONRE) on environmental training events and progress of implementation of the project.

Figure 4: PCU Organization Structure

13. Project Implementation Units (PIUs) were established, one for each of the towns in which subprojects are to be carried out. The provincial Department of Public Works and Transport (DPWT) in which the project implementation unit (PIU) has been created will implement the EMP with support from the PCU. The PIUs are responsible for day-to-day management of the subprojects. Paksan PIU Director (Ms. Youpha Phokhasombath) is supported by one Deputy Director and 14 staff in charge of procurement, urban planning, environmental and social safeguards, civil works, landscape, accountant, cashier, administrator, and finance officer while Thakhek PIU Director (Mr. Xaisomvang Linthasone) is supported by one Deputy Director and 16 staff in charge of sanitation, environmental and social safeguards, urban planning, riverbank protection, solid waste management, wastewater treatment, procurement and landscaping.

Figure 5: PIU Paksan Organization Structure

Figure 6: PIU Thakhek Organization Structure

14. Project Implementation Consultant (PIC). To provide the required project implementation consultant services to PCU, MPWT engaged the services of Asian Management and Development Institute (AMDI) (Vietnam) in a Joint Venture with Consultant and Inspection Joint Stock Company of Construction Technology and Equipment (CONINCO) (Vietnam) and BMEC Engineering & Consulting Co., Ltd. (BMEC) (Laos) through a contract signed on 11 March 9

2019. The consulting services assignment will cover a period of 5 calendar years, from March 2019 to March 2024. External support of the PIU for the implementation of the EMP will be provided by the International and National Environment Safeguards Specialists whose responsibilities are: (i) updating IEE/ EMP according to detailed engineering design (ii) provide training to PIUs and Contractors for supervision and implementation of the EMP; (iii) provide technical direction and support to PIU for implementation of EMP; (iv) supervision of implementation of EMP during construction.

E. STATUS OF ENVIRONMENTAL SAFEGUARDS DOCUMENTS

15. Environmental requirements are included in the bidding documents and contracts of the subprojects. Due to the bidding progress for subprojects is different, it is impossible to prepare one updated IEE with EMP for all sub-projects for each town; therefore, PIC proposed to PCU and ADB to develop nine updated IEEs with 9 EMPs for all 9 subprojects in Paksan and Thakhek. The plan to develop nine updated IEEs with EMPs was submitted to PCU and given NOL by ADB on 25 September 2019. As of 31 December 2019, the draft IEE/EMP for Municipal Solid Waste Subprojects were completed and expectedly finalized and submitted to ADB in early 2020 for ADB and disclosure in the ADB Website.

III. ENVIRONMENTAL PERFORMANCE MONITORING

A. STATUS OF EMPs’ IMPLEMENTATION IN PAKSAN AND THAKHEK

16. As of December 2019, the updated IEE and EMP for Paksan Municipal Solid Waste Subproject was prepared and submitted to PCU for 2nd review and comments. The final updated IEE and EMP for Municipal Solid Waste Subprojects in both Paksan and Thakhek towns are expectedly submitted to PCU for approval in January 2020 after the final DED of Municipal Solid Waste Subprojects are finalized and submitted to PCU for approval.

B. BASELINE ENVIRONMENTAL QUALITY SURVEY

17. The Baseline Environmental Quality (BEQ) survey for Subprojects in Paksan and Thakhek Towns is expectedly conducted in March 2020. The objective of the BEQ survey is (i) to have newest environmental quality results at all sites and surrounding areas of Paksan and Thakhek subprojects for adjusting the detail engineering design (if yes) and updating IEEs and EMPs; and (ii) to assess actual environmental impacts, especially adverse impacts, for adjusting and adding reasonable and effective mitigation measures (if yes) in the construction phase and operation phase.

IV. PUBLIC CONSULTATION MEETINGS

18. Aware of the fact that activities for public consultation, information disclosure, and public participations are part of the overall process of attaining meaningful stakeholders’ consultation and participation, the Project conducted several public consultation and information disclosure activities. 19. In the morning of 26 August 2019, the public consultation meeting with participation of village authorities and villagers were held in Na Sommor village, Paksan Town, Bolikhamxay Province. The meeting was attended by a total of 89 people (49 women, 40 men) from PCU, PIU, PIC and villagers, where number of villagers is 66 people (43 women, 23 men including waste pickers). 20. On 23 August 2019, the public consultation meeting with village authorities and villagers were held in Na Doun village in the morning and Na Bouap village in the afternoon. Both villages are located in Thakhek Town, Khammouane Province. The meeting held in Na Doan was attended by a total of 41 people (15 women, 26 men) from PCU, PIU, PIC and villagers, where number of villagers is 23 people (10 women, 13 men) including both villagers and waste-pickers. Meanwhile, the meeting held in Na Bouap was attended by a total of 80 people (45 women, 35 men) from PCU, PIU, PIC and villagers, where number of villagers is 77 people (47 women, 30 men) including both villagers and waste-pickers (See more details in Appendix 1: List of photos of Public Consultations and Appendix 2: List of participants in Public Consultation Meetings).

V. GRIEVANCE REDRESS MECHANISM

21. The Grievance Redress Mechanism has been established. Dissemination of the information and grievance forms were made during the provincial and village consultation meetings. There are three consecutive levels to facilitate grievance mediation and resolution, with the lowest level being the Grievance Committee at village level and the highest level being the People’s Supreme Court at National level. Nevertheless, affected people are entitled to lodge complaints regarding any aspect of the subproject preparation and implementation, without prejudice to their right to file complaints with the court of law at any point in the process. 22. If the complaint will not be resolved in the first level, the affected person may lodge his complaint at the sub-project grievance committee (SPGC). If the complaint will not be resolved in the SPGC, the affected person may lodge his complaint to the Grievance Redress Committee (GRC) at the district level. The resolution will be a collaboration of the affected person, the SPGC, and village committee.

VI. CONCLUSIONS

23. Diligent monitoring of EMP implementation helps improve the contractors’ awareness regarding compliance with the environmental safeguards’ requirements of the construction contracts. 24. Public Consultation Meetings helps update IEE/EMP and prepare the plan for Baseline Environmental Quality Survey. Important aspects with regards to the project’s interactions with the public have been implemented in a timely manner which was introduced to the villagers during the Public Consultations such as understanding villagers’ demand/requirements, creating place for them to express their complaints with regards to the upcoming construction subprojects. 25. Training activities will be conducted regarding the EMP implementation for PCU and PIUs staff, other relevant government units and contractors.

VII. APPENDICES

APPENDIX 1: LIST OF PHOTOS OF PUBLIC CONSULTATION MEETINGS

Public Consultation Meeting at Na Sommor Village, Paksan, Bolikhamxay Province

Villagers of Na Sommor participated in the Villagers of Na Sommor participated in the public consultation meeting (1) public consultation meeting (2)

Co-chairmen of the meeting PIC Specialist presents the controlled landfill

PIC Specialist present the environmental PIC Specialist present on resettlement issues of safeguards and gender and social development the Paksan controlled landfill issues of the Paksan controlled landfill

Public consultation meeting at Na Bouap village, Thakhek Town, Khammouane Province

PIC team was presenting the benefits and impacts of the subproject and villagers agreed with the subproject

Villagers were fulfilling the questionnaires

Public consultation meeting at Na Doun village, Thakhek Town, Khammoune

PIC team was presenting the benefits and impacts of the subproject

Villagers from Na Doun village

APPENDIX 2: LIST OF PARTICIPANTS OF PUBLIC CONSULTATION MEETINGS LIST OF PARTICIPANTS OF THE PUBLIC CONSULTATION MEETING FOR THE PAKSAN MUNICIPAL SOLID WASTE

LIST OF PARTICIPANTS OF THE PUBLIC CONSULTATION MEETING FOR THE THAKHEK MUNICIPAL SOLID WASTE