Tonga Outer Islands Renewable Energy

Initial Environmental Examination

May 2012

Kingdom of Tonga: Outer Island Renewable Energy Project – Phase 1

(200 KWp ‘Eua Solar Power Plant)

Prepared by Tonga Power Limited (TPL), Government of Tonga for the Asian Development

Bank.

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.

CURRENCY EQUIVALENTS (as of 31 March 2012)

Currency Unit = Tonga: pa'anga (TOP) TOP1.00 = US$ 0.59 US$1.00 = TOP 1.67

LIST OF ABBREVIATIONS

ADB - Asian Development Bank CFC - Chlorofluorocarbons EA - Executing Agency EIA - Environmental Impact Assessment EMP - Environmental Management Plan GoT - Government of Tonga GFP - Grievance Focal Points GHG - Green House Gases GRC - Grievance Redress Commission IA - Implementing Agency IEE - Initial Environmental Examination MECC - Ministry of Environment and Climate Change PCBs - polychlorinated biphenyl REA - Rapid Environmental Assessment SPS - Safeguard Policy Statement TA - Technical Assistance TERM - Tonga Energy Road Map TPL - Tonga Power Limited

NOTES

(i) The fiscal year (FY) of the Government of Tonga ends on 31 December. FY before a calendar year denotes the year in which the fiscal year ends, e.g., FY2011 ends on 31 December 2011.

(ii) In this report, "$" refers to US dollars

TABLE OF CONTENTS

Page A. EXECUTIVE SUMMARY 1 B. POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK 2 1. Government of Tonga Environmental Policies, Laws and Regulations 2 2. Environmental Assessment Process in Tonga 3 3. ADB’s Environmental Safeguard Requirements 3 4. Institutions 4 5. Extent of IEE Study 4 C. DESCRIPTION OF THE PROJECT 4 1. Project Background 4 2. Need of the Project 5 3. Location of Project 5 4. Project Components and Activities 5 5. Local Infrastructure Required 6 6. Implementation Arrangement 6 7. Project Benefits and Justification 6 D. DESCRIPTION OF THE ENVIRONMENT 11 1. Physical Resources 11 2. Ecological Resources 12 3. Socio-economic Resources 14 E. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES 14 1. Impacts and Mitigation Measures Due to Construction Activities 14 2. Impacts and Mitigation Measures from Operation 15 3. Cumulative Impacts 16 4. Social Impact 16 F. ANALYSIS OF ALTERNATIVES 16 G. CONSULTATIONS AND INFORMATION DISCLOSURE 17 1. Stakeholder / Community Consultations 17 2. Information Disclosure 19 H. GRIEVANCE REDRESS MECHANISM 19 I. ENVIRONMENTAL MANAGEMENT PLAN 19 1. Mitigation Measures 19 2. Monitoring and Reporting 20 3. Implementation Arrangement 24 4. Environmental Management Budget and Resources 24 J. CONCLUSION AND RECOMMONDATION 24 APPENDIX 1: PHOTOGRAPHS (FIELD AND CONSULTATIONS) 25 A. Photographs (site and consultations) 25 APPENDIX 2: REA CHECKLIST 29

A. EXECUTIVE SUMMARY

1. The proposed Outer Islands Renewable Energy Project (the Project) will assist the government’s efforts to reducing the country’s heavy reliance on imported fossil fuels for power generation. It will provide a secure, sustainable and environmentally-sound source of electricity for private and commercial consumers, by implementing 0.8 MWp solar power capacity connected to the existing diesel networks of Tonga’s outer islands of Vava’u, ‘Eua, and Ha’apai.

2. This is the Initial Environmental Examination (IEE) prepared for a 200 KWp ‘Eua Solar Power Plant proposed under this Project, located at Ohonua Village of ‘Eua Island. Based on the Government’s and Asian Development Bank’s (ADB’s) environmental policies, the proposed ‘Eua solar plant project is categorized as environmental category B project considering the most sensitive component. This IEE is prepared to meet the requirements of the Kingdom of Tonga as well as ADB’s Safeguard Policy Statement 2009 (SPS 2009) requirements. The scope of this IEE is limited to the proposed solar power plant only.

3. The project will construct and operate 200KWp solar power plant. The plant will consist in a set of solar photovoltaic (PV) modules, power inverters, switchgear, associated protection, control and monitoring equipment, and associated civil works. The electricity output will be directly fed into existing distribution network of Tonga Power Limited (TPL).

4. The project will require about 2000 sq.m (0.2 hectares) or 0.5 acre1 of land to install a 200 kWp capacity solar power plant and associated facilities. The site proposed for the solar power plant is located at Ohonua Village of ‘Eua Island which is located only 17.5 km southeast of Tonga’s main island, Tongatapu covering a total land area of 87 sq. km with 5011 population. The site is adjacent to the existing power plant of Tonga Power Limited. The land use around the proposed site is rural with flat to undulating topography. The potential site is an open land adjacent (within existing premises) to the existing power station and it is owned by Tonga Power Limited. There is no encroachment on this site. The size of available plot is sufficient to accommodate the proposed 200 KWp solar power plant which will require about 0.2 hectare of land.

5. There are no sensitive areas on and around the proposed site. ‘Eua National Park, the only sensitive areas of ‘Eua Island is about 7 km away from the proposed site. Coastline is about 1.5 km away from the proposed plant and there is no history of any flooding or water logging. There is no physical infrastructure of public interest, archaeological / religious importance in and around the proposed site.

6. The project does not have any significant long term impact. Some short-term impacts related to construction stage are expected. Short-term impacts from noise and dust emissions are expected due to increase in traffic for transportation of equipments and construction material as well as operation of construction machineries. Operational impact includes visual effects due to installation of solar panels. All these impacts are manageable by implementing mitigation measures proposed in the environmental management plan.

7. Local communities and stakeholders were involved in process of preparing the IEE through on-site discussions. Views expressed were incorporated into the IEE and the planning and development of the project. As the project will have insignificant environmental and social impact, local communities and community leaders did not oppose to the project. They, however, sought assistance in community development and support for community cultural events. The IEE will be made available at public locations and will be disclosed to a wider audience via the ADB website.

1 Land requirement is estimated based on assumption that 1 KWp solar power requires about 8 sq.m. area for solar PV installation and space of access and distance between rows of panels. 2

The consultation process will be continued and expanded during the project implementation to ensure that stakeholders are fully engaged in the project and have the opportunity to participate in its development and implementation.

8. The proposed ‘Eua solar power plant project will not cause any significant, lasting environmental and social impacts during construction, operation and decommissioning. Only minor and transient environmental disturbances would be experienced at the project site during construction and operation, and they will be minimized through implementation of the Environmental Management Plan (EMP). It is then recommended that the Project be considered environmentally and socially feasible, and that this IEE is adequate to justify environmental and social feasibility of the Project. There is no need for further analysis and the environmental and social assessment of the Project is considered complete.

B. POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK

9. Environmental assessment of proposed project has been carried out in compliance with ADB and Government policies, legislation and requirements. Relevant international agreements have also been followed in the process of environmental assessment.

1. Government of Tonga Environmental Policies, Laws and Regulations

10. Some of the important laws relevant to the proposed renewable energy project focusing on environmental assessment are summarized in Table 1.

2010 Protection of the Ozone Layer and the Protocol on substances that deplete the ozone layer and for related purposes. To provide for the regulation and proper management of Hazardous hazardous wastes and chemicals in accordance with Wastes and accepted international practices and the International 2010 Chemicals Act Conventions applying to the use, transboundary movement 2010 and disposal of hazardous substances and for related purposes. 2008 Renewable (amende To regulate the use of renewable energy in the Kingdom Energy Act 2008 d in and related matters. 2010) To establish the Ministry of Environment & Climate Change Environment to ensure the protection and proper management of the Management Act 2010 environment and the promotion of sustainable 2010 development. Source: Ministry of Environment and Climate Change, Government of Tonga (www.mecc.gov.to)

2. Environmental Assessment Process in Tonga

11. Under the Tongan regulatory framework (the EIA Act 2003 and the EIA Regulations 2010), all development activities must be referred to the Minister of Environment and Climate Change, either directly or through the Determining Authority. With this notification, the proponent must complete a Determination of Category of Assessment form, providing an overview of the proposed development and a number of details in relation to the existing environment and potential environmental impacts and mitigation measures. The secretariat and the Minister determine whether the proposed development is a minor or major project, and advises the proponent within 30 days. If it is a major project, the proponent then submits a full Environmental Impact Assessment for review by the secretariat. The secretariat makes recommendations to the Environmental Assessment Committee. The Minister receives an assessment report and issues the approval (with or without conditions), a request for further information, or a rejection.

12. Under the EIA Act, a Schedule lists the projects considered as major projects. Electricity Generation Stations is listed as one of the major projects however; renewable energy generation projects such as this project has not been clearly stated in this Schedule. This IEE provides the information required for Ministry of Environment and Climate Change (MECC) to undertake their assessment process as required under the regulations as Major Project.

3. ADB’s Environmental Safeguard Requirements

13. This environmental assessment is carried out to ensure that potential adverse environmental impacts are addressed according to the ADB’s SPS 2009.

14. As per SPS 2009 the objectives of Environment Safeguards are to ensure the environmental soundness and sustainability of projects and to support the integration of environmental considerations into the project decision-making process. To help achieve the desired outcomes, ADB adopts a set of specific safeguard requirements that need to be achieved during the processing and implementation of projects financed by ADB. The environmental safeguard principles are stated in the Safeguard Policy Statement, which will guide environmental assessment process of projects. The SPS 2009 establishes the format for the presentation of the

4 environmental assessment. ADB categorizes projects into categories A, B, C, and FI according to the significance of likely impacts.

15. Based on the Government’s and ADB’s environmental policies, the proposed Ha’apai solar plant is the project is categorized as category B project based on the most sensitive component. This IEE is prepared to meet the requirements of the Kingdom of Tonga as well as ADB’s SPS 2009 requirements.

16. Beside national and ADB policies, Tonga is a Party to several international environmental agreements of which the MECC is the National Focal Point or the Implementing Agency (IA).

4. Institutions

17. The principal national agency charged with environmental protection is the Ministry of Environment and Climate Change. This Ministry was formally created by the Environmental Management Act 2010. The role of MECC is to protect the environment and promote sustainable development. MECC is also the agency required to respond to any complaints from the public about environmental issues.

5. Extent of IEE Study

18. The proposed project located in the outer Island of ‘Eua (the main Island) is classified under ADB SPS 2009 as environment category ‘B’ project, requiring an IEE study. This is the IEE Report of this project. The scope of IEE is limited to the power plant only. Purpose of this IEE is to assess potential environmental, health, safety and social impacts of the proposed projects. No significant adverse environmental impacts have been noted in this project assessment.

19. The IEE is prepared during the project preparation work in the months of February 2012- May 2012. The project is currently in bid preparation stage, and although there are no major changes in the project design and location of components, the IEE will be updated in line with the ADB SPS 2009.

20. The IEE study is conducted based on secondary information and primary data collected from various sources and field surveys. During the site visits the specialists had discussions with various stakeholders including town members and local executive powers for their feedback on the proposed project. The results of the social survey with village/town members as well as an evaluation of the institutional framework have been incorporated into this assessment.

C. DESCRIPTION OF THE PROJECT

1. Project Background

21. Like other Pacific islands countries, Tonga is also highly vulnerable to oil price shocks, affecting the affordability of food, goods, electricity, and transportation. This dependency consequently affecting the economic growth of the country. The proposed Outer Islands Renewable Energy Project will assist the government’s efforts to reducing the country’s heavy reliance on imported fossil fuels for power generation. By providing a secure, sustainable and environmentally-sound source of electricity for private and commercial consumers, it will implement 0.8 MWp solar power capacity connected to the existing diesel networks of Tonga’s outer islands of Vava’u, ‘Eua, and Ha’apai saving yearly about 750 tons of carbon dioxide (CO2).

2. Need of the Project

22. A project preparatory technical assistance (PPTA) is required to develop the Project in the three main outer island groups of Vava’u, ‘Eua, and Ha’apai. It will include (i) solar resource assessment, (ii) screening and site selection for one solar plant on each island group, (iii) preparation of conceptual feasibility studies for the selected schemes including all technical, economic, financial, environmental, legal and social considerations, and (iv) capacity strengthening program of Executing and Implementing Agencies, including customers. This report present the findings of the study carried out in ‘Eua Island.

3. Location of Project

23. All the physical components included in the project are located in ‘Eua Island of the Kingdom of Tonga. The proposed power plant site is located in Ohonua Village of ‘Eua Island which is about 17.5km southeast of main island, Tongatapu. The proposed site is adjacent to the exiting power plant of Tonga Power Limited at Ohonua village, which is on the downtown of ‘Eua Island. Figure 1 shows the location map of the project facilities.

24. The project will need about 2000 sq.km (0.2 hectares) or 0.5 acre of land to install a 200 KWp capacity solar power plant in ‘Eua. The land available adjacent to exiting power plant is sufficient to accommodate the proposed plant size and there is no need for additional alternate land. This land belongs to the TPL, which is leased from King.

4. Project Components and Activities

25. The main activities of Outer Island Renewable Energy Project are summarized below: • Installation and commissioning of grid-connected solar power plant in ‘Eua Island with a capacity of 200 KWp. • Capacity building of TPL staff in planning and TPL customers in managing the electricity services. • Efficient Project Management services.

26. The scope of work under physical components comprise of various elements as described in following paragraphs.

27. The project will construct and operate 200KWp solar power plant. The plant will consist in a set of solar photovoltaic (PV) modules, power inverters, switchgear, associated protection, control and monitoring equipment, and associated civil works. The electricity output will be directly fed into existing distribution network of TPL for further distribution. Table 2 summarizes salient features of the Project.

Table 2: Salient Technical Features of the Project S. No. Component Features / Specifications 1. Solar Panels Approx. 1000 panels, poly-crystalline, Number of Panels photovoltaic (PV) Dimensions of each panel Rectangular, 2 m by 1 m Inclination 15 degrees Life Cycle 25 years

2. Loading Controllers 2 stations 3. DC-AC Inverters 100 kW, 2 units 4. Transformers 0.1 MVA (22kV/380V) 2 unit 5. Batteries To be define Wires and other 6. As per locally available accessories

5. Local Infrastructure Required

28. The local infrastructure required for the project are the roads, wharf and the pre-existing energy grid.

29. The roads and wharf will be needed to transport necessary materials and machineries only during construction. It will mean there is more traffic, particularly heavy traffic, on the road than usual. The distance from the wharf to the proposed site is short so few roads will be affected by this. Traffic level will return to normal after the construction of the solar plant is completed.

30. The solar plant will be connected to the existing grid and will feed it energy. Batteries are to be installed as part of the project to ensure smooth transition from solar plant to grid.

31. Although the existing TPL generation facility is operational 24 hours a day, it is not expected that the solar farm construction team will need to operate outside of normal daytime work hours.

6. Implementation Arrangement

32. Existing institutions will support the project implementation. TPL will be the project implementing agency, while the Tonga Energy Road Map (TERM)- Project Implementation Unit (PIU) will be the project executing agency (EA). A project steering committee will be established to review project progress, coordinate inter-ministerial activities and guide the project management unit within the utility, supported by project implementation consultants.

33. The project implementation period will be 10 months tentatively scheduled to complete in the month of September 2014. The tendering process will began in April 2013 and expected to be completed in September 2013. Bid evaluation and contract will be awarded in October 2013. Installation work is expected to start in November 2012 and trial operation is scheduled on September 2014.

34. The project will provide operation and maintenance for the initial five years after completion and simultaneously be training TPL staff to carry out O&M themselves for remaining lifetime of the power plant.

7. Project Benefits and Justification

35. The successful implementation of this 200kWp power plant in ‘Eua Island as part of Outer Island Renewable Energy Project will result in reduction of annual diesel import for power generation to about 90,000 liters/year2 by 2018. Besides at least 1023 HH in ‘Eua will be supplied with electricity generated from renewable sources, out of them at least 150 HH are using less than 11 units electricity per month.

2 With a baseline of 2011 diesel consumption for power generation which is 150 million of liters.

36. In terms of solar energy, TPL consumers in ‘Eua will get at least 360 MWh3 of solar electricity supply every year. Besides this capacity of TPL staff will be enhanced on procurement, anticorruption, safeguards and operation and maintenance of solar-diesel hybrid energy systems. In terms of environment, the project will bring positive impacts by reducing gaseous emissions (CO2) from running of existing DG sets; reduction in noise from DG sets operations, reduction in land and ground water contaminations caused by spill of oil from DG sets. Overall proposed project will improve socio-economic conditions of the local communities in the targeted areas and will enhance the national GDP.

3 The proposed 200kWp power plant is expected to generate about 360 MWh of solar electricity annually which will offset about 90000 litres of diesel per annum.

Figure 1: Locations of Project Areas on Country (Tonga) Map4

4 Source: http://www.lib.utexas.edu/maps/islands_oceans_poles/tonga_pol_1989.pdf

Figure 1a: Location of Project Area in Island Map

Image 1: Location of existing TPL and proposed Solar Power Plant

Image 2: View of open space of left side of the existing TPL Generation Plant

Image 3: View of existing (left) and proposed (right) sites Map 1: Map of ‘Eua Island showing proposed plant

site

D. DESCRIPTION OF THE ENVIRONMENT

1. Physical Resources

1.1 Physiography, Land use and Demography

37. The Kingdom of Tonga is a Small Island Developing (SID) state located in the central South Pacific. It lies between 15º and 23º 30' South and 173º and 177º West. Tonga has a combined land and sea area of 720,000 km². It is an archipelago of 172 named islands with an area of 747km2 of which 36 islands are inhabited with an area of 649km2. Tonga had a total population of 103,036 (2011 census) compares to 101,991 at the Census of 2006, an increase of 1045 people over the 5 years.

38. Within Tonga there is a western line of islands of volcanic origin, steep topography and generally high elevations, and an eastern line of generally low-lying limestone and mixed geology islands. Amongst the western group are Tofua (507 m), Kao (1030 m), Late (519 m), Niuafo'ou (260 m), Niuatoputapu (106 m) and Tafahi (548 m). The eastern group where the majority of the population lives consists of Tongatapu (65 m), 'Eua (312 m) and most of the islands of the Ha'apai and Vava'u groups.

39. The Kingdom of Tonga consists of four clusters of islands extended over a north-south axis: Tongatapu (260sqkm); ‘Eua (87sqkm) in the south; Ha’apai (109sqkm) in the middle; Vava’u (121sqkm) in the north; Niuafo’ou and Niua Toputapu (72sqkm) in the far north. Tonga’s archipelago is situated at the subduction zone of the Indian-Australian and the Pacific tectonic plates and within the Ring of Fire where intense seismic activities occur.

40. ‘Eua island lies 40 km south-east of Tongatapu. It is a high volcanic island with soils derived from andesitic tephra overlying tuffaceous materials and/or coral. Extensive forests and some plantation forestry cover the range of hills which run for most of the length of the island on the eastern side. Most farming occurs on the gentle slopes and on flat terraced land of the western half of the island. Soils are fertile, and with the exception of southern areas where coral outcrops are found, are easily cultivated.

41. The power plant in question is located in ‘Eua Island cluster which is located about 40km south-west of Tongatopu group. ‘Eua Island is spread over a land area of 87 sq. km. as per 2011 census, total population of ‘Eua is 5011 and 867 households. The proposed power plant site is located at Ohonua Village of ‘Eua Island. The proposed site is adjacent to the exiting power plant of Tonga Power Limited at Ohonia village which is within the premises of the existing power plant. The land use around the proposed site is residential with flat to undulating topography.

1.2 Meteorology and Climate

42. The climate of Tonga is tropical. Tonga lies within the south-east trade wind zone of the South Pacific. Wind speed over its surrounding oceans averages around 12 knots. Strong winds are not common except during tropical cyclone passages in summer (November- April) and gales from eastward migrating high-pressure systems during winter (May-October). Rainfall is moderate, with high relative humidity. Tonga’s annual rainfall is defined by two seasons, the Wet and Dry seasons.

43. Temperature variations throughout the Kingdom show an increase in daily and seasonal variations with increasing latitude. Mean annual temperatures vary from 27˚C at Niuafo’ou and Niuatoputapu to 24˚C on Tongatapu. Diurnal and seasonal variations can reach as high as 6°C

12 throughout the island group. During the Hot Wet Season (November – April), the average temperature ranges from 27–29˚C whereas at Dry Cool Season (May – October), the average temperature ranges from 20–24˚C.

44. Tonga has seen an increasing trend in the occurrences of tropical cyclones. There is also evidence that the intensity of cyclones has increased since the 1980’s in Tonga. Since the 1960’s 4 cyclones have severely affected Tonga. Cyclone Flora in March, 1961 affected Vava’u and Ha’apai district, Cyclone Isaac in March, 1982 affected Ha’apai and Tongatapu and Cyclone Waka in December, 2001 affected the northern group of Niua and Cyclone Renee in 2010 severely affected Tongatapu, Vava’u & Ha’apai groups. All of these cyclone events caused severe damages to crops and food supply, infrastructures, tourist resorts, the environment, buildings and disrupt essential services and the wellbeing of the people of affected community for a prolonged period of time.

45. ‘Eua has semi-tropical climate with mean monthly maximum and minimum temperatures are 270C and 240C respectively. Average annual rainfall is 1753 mm. Because of to its higher elevation, ‘Eua has slightly higher and better distributed rainfall that Tongatapu, and a reputation for being less affected by drought.

1.3 Geology, Soils and Mineral Resources

46. The Tongan archipelago lies roughly in a North - South direction. The soils of Tonga are derived from a mixture of volcanic ash and coral. Because island groups are isolated from each other, and are physically and economically different, the country is described in four parts. Most of the islands of Tonga have a soil layer overlying coral limestone. Soils vary from island to island. The soils are mainly derived from andesitic tephra (volcanic ash). Other soils include coral sands and lagoonal sands and mud. It is believed that the tephra was deposited by a series of volcanic eruptions from emergent volcanoes such as Tofua and Kao and from submarine volcanoes to the west. Tongatapu and Eua are limestone capped or karst islands, and these combine with a number of small coral islands to form the Tongatapu group.

1.4 Water Resources

47. The freshwater resources of the Kingdom of Tonga consist mainly of groundwater in the form of freshwater lenses. Freshwater lenses form on top of seawater in many of the islands due to the difference in density of the two fluids. The interface, or boundary, between the two fluids is not sharp but rather is in the form of a transition zone. Within the transition zone the water salinity increases from that of freshwater to that of seawater over a number of metres. Surface water resources are only evident on some of the high volcanic and mixed geology islands in the form of springs and lakes. Crater lakes exist on the islands of Niuafo'ou and Tofua. It is reported that the former lake has been used in dry periods as a source of potable water. Surface water is collected from cave systems on the island of 'Eua and used for potable water supply.

48. Rainwater harvesting systems are a complementary freshwater resource, and an essential source of potable water on many of the islands. Surface water is collected from cave systems on the island of ‘Eua and used for potable water supply.

2. Ecological Resources

2.1 Flora and Fauna

49. Tonga’s flora and fauna is limited in diversity. There is a wide variety of vegetation types throughout the islands of the Kingdom of Tonga. Indigenous vegetation includes a variety of rootcrops, fruit trees such as mangoes, tava, and a variety of citrus, and native vegetables and grasses. In the settled areas of the four Island Groups, much of the native vegetation has been cleared for coconut plantations, home gardens, villages, and commercial crops. A significant percentage of the country is now under coconut and Panicum grassland.

50. The major marine ecosystems in Tonga are: algal and seagrass beds; fringing and lagoon reefs; rocky coasts; beaches; open lagoons; marine lakes; marine caves and a submarine trench. The reefs and lagoons are the prime fishery for subsistence supplies. There is an expanding Ministry of Forests (MoForest) replanting programme on Eua Island with over 750 ha of exotic species of Pinus caribaea, Toona ciliate, Swetenia macrophylla, Agathis robusta and Eucalyptus spp planted. An additional 50 ha of exotic forests, mostly on Eua, is privately owned. The proposed site of the power plant is free of vegetation. There are two bird species and twelve plant species recognized as endemic to Tonga. None of these occur on Tongatapu.

2.2 Forests and Protected Areas

51. Tonga’s protected area network consists of National Parks, Terrestrial and Marine Parks & Reserves Protected Area. Under the Parks and reserves Act of 1976, five marine parks have been designated on Tongatapu. The parks cover 250 hectares of coral reef, which is 10% of Tonga’s total coral system. None of the other island groups have marine parks although surveys have been conducted with this intention in mind. Table 3 present the overview of the protected area system in Tonga.

Table 3: Overview of Protected Area System in Tonga

PA category/type Quantity Surface Corresponding Management area, IUCN category authority hectares Marine Protected Areas, 1,003,729 IV-VI MECC protected seascape/ 8 marine reserves Managed resource 6 2,100 II, V,VI Forestry & terrestrial protected MECC areas Managed resource 9256.5 VI Fisheries protected areas/special 6 management areas (SMA) – community based. Strict Nature Reserve 6 1,104.5 IA Fisheries (SMAs – community based) Source: Data provided the Ministry of Environment and Climate Change

52. ‘Eua National Park is only protected area in ‘Eua Island located about 7 km away from the proposed power plant site. Considering the scope of proposed solar power plant, no adverse impacts on this national park is expected due to construction of ‘Eua Solar Power Plant.

3. Socio-economic Resources

3.1 Human Resource and Pattern of Population

53. The population of Tonga is 106,036 distributed over 45 of its 172 islands. The annual population growth has occurred at an average of 0.2% since 2006, and is not expected to increase due to migration patterns. However, there is a real drift to the urban area of Nuku’alofa, with a population growth of 0.8%. The official poverty line in Tonga has been established at $2586 per person per year in 2009. According to the Bureau of Statistics, 22% of people in Tonga are viewed as living below the poverty line.

54. In the social survey, households were asked to comment on level of power supply and fairness of pricing for a range of utility services including electricity. Most of the people agreed with the level of electricity supply. About 15-20% of their monthly income goes to the electricity consumption. Life in Tonga revolves around strong values of family and the Church, and has a well developed historic and contemporary national identity.

55. There will be no impacts on physical cultural resources through the implementation of the subproject.

3.2 Economic Development

56. The economy of Tonga is largely based in agriculture and fisheries. Subsistence agriculture plays an important role throughout Tonga. In addition, remittances sent from relatives working abroad play a significant part in the Tongan economy as a whole, and in the economy of individual households. The global financial crisis in recent times has impacted on this economic flow, increasing the level of hardship experienced by many families in Tonga. The Agriculture sector is the main contributor, in terms of GDP, to the economy of Tonga from 2000–2009. This is closely followed by Public Administration and Services. If we aggregate the data to the sectoral level then the Services Sector is revealed to be the highest contributor to the GDP. This indicates a gradual diversification from the Agricultural sector to the Services Sector.

3.3 Historical and Cultural Values

57. The project site and the surrounding areas are for mainly rural residential land use, and have no important historical or cultural sites. There are no records of archeological findings in the project area.

E. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES

1. Impacts and Mitigation Measures Due to Construction Activities

58. The project will involve only minor civil work such as clearing of site, earth work and foundation for panels. Mechanical and electrical works will take place at various locations within a vast project site. The site preparation will involve only minor leveling, and thus will not significantly

change the drainage pattern. The transportation of construction materials and project equipment will require about 10 truck trips per day during the working period of 8 hours. Considering the nature and scope of the construction works and the ecological insensitivity of the project site, it is certain that only minor and manageable environmental disturbances will be created during construction, with minimum impact on nearby communities and the natural environment. Environmental disturbances during construction will be small and transient, such as dust, noise, incremental traffic loads on the roads, and gaseous emissions created by trucks and heavy construction equipment. Preliminary estimates of the incremental increases in ambient dust and noise levels during construction were made and were found to be marginal.

59. The project will require about 0.2 hectare of land. Since land available within existing premises of the TPL will be used for new power plant, additional land requirement is not envisaged. Trimming of some trees on surrounding areas may have some adverse impacts on the environment. Cuttings of any tree will be compensated by planting additional trees. Necessary budget will be provided for planting trees. Cutting and planting of trees will be done in coordination with local offices of the Lands and Surveys Department, and Forestry Department.

60. The construction will require not more than 50 workers, who will reside outside the project site. No groundwater will be tapped at the project site as the project site has low groundwater potential. The water required for construction (concrete mixing) and consumption will be brought in from outside sources. Domestic wastewater generated by the construction workers would not be more than 10 cubic meters per day and will be treated either in a small centralized package treatment plant or by individual septic tanks, one for each toilet.

61. The nature of the construction works indicates that no toxic or hazardous materials will be used, apart from fuel oils for vehicles, which will be properly stored. Construction wastes will be sorted out by the contractors for recycling. The residual wastes will be properly handled by the relevant municipal units for waste disposal.

2. Impacts and Mitigation Measures from Operation

62. Unlike thermal power plants, the operation of the project solar power plant will have negligible environmental impact on the site during operation. There will be no waste products, no requirements for cooling, no moving parts, no noise, and no impact on flora and fauna.

63. After construction, the project impacts will diminish. After construction, traffic to and from the ‘Eua Power Plant site will reduce to present levels. The solar facilities contribution to noise in the vicinity will be undetectable and definitely insignificant compared to that of the adjacent diesel generators.

64. The largest impact could be visual with the addition of the solar panel arrays on the site, including the possibility of some glare from the panels, even though they are designed to absorb the incident solar radiation. The arrays will be less than 3m high at their peak, and will be on a fixed 20 degree angle facing due north. However, the proposed site for the array is currently bounded by dense vegetation in three sides and on one side it has existing diesel generated power plant. Given the flatness of the land, the existing vegetation on three side, diesel tank and generation building on other side, the visual impact from the ‘Eua Solar Power Plant will be insignificant.

65. The water to be used for washing of the solar panels will be used from outside sources. The wastewater generated by washing will be drained out by providing adequate drainage facilities.

66. To avoid risks from tropical cyclones and hurricanes, the foundations and racking system will be designed to withstand powerful cyclones and hurricanes, which will limit the probability of generation unavailability as well as reducing any potential hazard of panels being lifted up and blown onto adjacent properties.

67. The project will use transformers of forced-oil and forced-air-cool designs, which do not use polychlorinated biphenyl (PCB). Therefore, there will be no PCB disposal problem.

68. Only about 20 staff will operate the project facilities. Domestic wastes generated by this small number of people could be readily handled by conventional practices.

69. Emergency response plan including occupational health and safety plan will be adopted to handle emergency situation during the operation period. Workers will be trained to deal with the emergency situations.

70. The Project’s solar PV panels are expected to have an economic life of 25 years. The suppliers will accept the decommissioned solar PV panels for recycling based on the thin-film technologies and their update. Dismantling of the PV panels will be handled by suppliers that offer the best price for used PV panels in the future. Similarly the project will require the use of batteries which will need proper disposal and recycling of the lead and the acid that is contained in the batteries after 10 years of operation. The disposal of the batteries will be handled by suppliers.

3. Cumulative Impacts

71. The ‘Eua Solar Power Plant will be located adjacent to the existing diesel generation power station of TPL which consists of three diesel generation and a diesel storage tank. While the facility will result in a large number of new solar array structures, these will be no higher than 3m and visual impact on neighbouring properties will be limited by existing vegetation along their boundaries.

72. Presently, there is no future development or expansion plan either of existing diesel power plant or any other infrastructure by government. Therefore, there will be no negative cumulative environmental effects of constructing an additional solar farm.

4. Social Impact

73. The project has no resettlement or indigenous peoples (IPs) issues. The land proposed for the power plant is owned by TPL. Project site has no people identified as IPs. The project is therefore expected to be classified as category C for both involuntary resettlement and IPs.

F. ANALYSIS OF ALTERNATIVES

74. With and without project alternative were analyzed and it is found that the Tonga would continue to pay heavy price for diesel import which will affect the overall economic development of the country and the Islands. Implementation of project will bring positive economic, social and environmental benefits. Economic benefits will be from the reduction in import of diesel for power generation. Social benefits will be from sustainable electricity supply to the consumers and environmental benefits will be from reduction in emission from DG sets by reducing diesel transport, storage, spills and emissions; reduction in noise levels from DG sets being currently

operated by power station. Also as part of capacity building of local technicians in implementation and operation of solar and other renewable energy projects, future projects will be benefit from the learning from the construction and operation of the site.

75. Alternative sites were considered, but the proposed site in ‘Eua was considered the best location for the solar power plant as it is adjacent to the existing TPL diesel power generation plant, easy access to distribution network, providing existing facilities (network, access roads), security and operational workforce that will reduce capital and operating costs. The land has low environmental or residential value, given the existing power generation operations and leases in place. The Project’s technical team is reviewing the technical aspects and conceptual designs of potential PV panels and battery suppliers and the best configurations that would meet TPL’s requirements will be selected.

G. CONSULTATIONS AND INFORMATION DISCLOSURE

1. Stakeholder / Community Consultations

76. As part of environmental assessment, stakeholder and community consultations were carried out during field visits. The details of such consultations carried out during reconnaissance field visits are presented in Table 4 and Table 5. Also, a number of officials from various agencies, i.e., the Tonga Power Limited, Office of the Governor of ‘Eua, Department of Forestry, Department of Lands and Surveys, etc., were consulted during the fact finding visit. The consultations included both discussions stakeholders and discussions with village/district level authorities.

77. Consultations will continue at next stages i.e. after finalization of detailed design and before start of the civil works construction as well as at implementation stage.

Table 4: List of Stakeholders / Communities Consulted during Field Visits in ‘Eua

Sl. Name Designation and Organization Contact No. No. NUKU’ALOFA 1. John van Bribk Chief Executive, Tonga Power Limited, 7863202 Nuku’alofa 2. Lano Fonua Liaison Officer, Tonga Power Limited, Nuku’alofa 3. Seini Fotu Conservation Officer -Biodiversity, Department of Environment, Ministry of Environment and Climate Change, Government of Tonga, Nuku’alofa 4. Richard ‘Atelea GIS Specialist, GIS Unit, Ministry of Lands, Kantoke Surveys and Natural Resources, Government of Tonga, Nuku’alofa 5. Makameone Senior GIS Technician, GIS Unit, Ministry 8895909 of Lands, Surveys and Natural Resources, Government of Tonga, Nuku’alofa ‘EUA ISLAND

6. Semisi Halaholo Government Representative, ‘Eua Island 7. Steven Forestry Officer, Government Forestry 8650114 Department , ‘Eua Island 8. Taki Hausia Liaising Officer, ‘Eua Council, ‘Eua Island 7755753 9. Naita Fe’ao Manager, Eua Power Station, Tonga Power Limited, ‘Eua Island 10. Sione Taulaki Technician, Eua Power Station, Tonga Power Limited, ‘Eua Island

Table 5: Summary of Stakeholder / Community Consultation Undertaken During Visits of Sample Sites Date / Venue / No. Issues discussed / remarks5 of participants 13 April 2012/ ‘Eua Government representative from ‘Eua Island were informed about that Government proposed project and purpose of the visit. He welcomed the project as representative at it will ensure the sustainability of power supply to the Island. He ‘Eua / 03 informed mission that ‘Eua government will support the project by providing full cooperation in implementing the project including local level clearances if required. They informed that they do not foresee any adverse impacts on the environment because of this Project. 13 April 2012/ TPL Information about existing plant, status of land proposed for power Generation Station, plant, presence of environmental sensitive areas on and around the Eua / 06 proposed site, existing capacity of TPL in managing environmental issues were assessed. It is informed by TPL that the open land adjacent to the existing power station (within the premises of existing power plant) at Ohonua Village could be used for the proposed solar plant. This land is owned by Tonga Power Limited. TPL informed that it has sufficient capacity to manage environmental impacts associated with operation of existing diesel as well as proposed solar power plant. However, they informed that trainings on ADB’s environment policy and environmental assessment requirements could be useful for their staff. 13 April 2012/ Liaison Officer of Tonga Development Council informed that they will Tonga extend all possible support to implement this project. Development Council, ‘Eua /02 14 April 2012/ Officials from Forestry Department were consulted. They informed that Government there are no environmental sensitive /protective areas around the Forestry proposed site. ‘Eua National Park is about 7 km away from the Department Office, proposed site. ‘Eua /03 13 April 2012 / Discussions were held together with social specialist to inform Community communities about proposed project and to understand their Leaders and concerns. Communities were informed about benefits both socio- Electricity Users (2 economic as well as environmental benefits from the project. All the groups) / 10 participants consulted fully support the project.

5 Queries raised by people were answered to their satisfaction and it was assured that their concerns will be addressed in the process of project design.

Date / Venue / No. Issues discussed / remarks5 of participants 16 April 2012/ Scope of proposed project, national policy and regulatory framework Ministry of as well as requirements for permits and EIA approval were discussed Environment and with officials from MECC. Climate Change /02

78. Local communities and community leaders are well aware of and fully support the proposed project, as the installation of solar power plant will bring benefits to the Island in terms of improved and sustainable electricity supply, improve the overall economy situation by saving in cost of imported diesel and some employment opportunities. Attachment 2 shows the photographic record of the consultations undertaken during preparation of the IEE.

2. Information Disclosure

79. All environmental documents are subject to public disclosure, and therefore will be made available to the public. The IEE has to be disclosed on ADB’s website upon receipt. TPL will ensure that meaningful public consultations, particularly with project affected persons, if any, are undertaken.

H. GRIEVANCE REDRESS MECHANISM

80. The process for solving safeguards complaints that may arise in the project is the grievance redress mechanism. Local people, once they feel that adverse and material harm is caused by the Project, can directly contact community leaders or TPL office. TPL firstly obtain the information from the complainer as much as possible to identify source of the problem and inform operation division. When the operation receives the information from TPL, they will find out if the complaint is caused from their operation. Once verified that the problem/complaint is due to operations, TPL will take the necessary corrective action plan to fully resolve the complaints about its safeguards performance. TPL will inform and update the complainant about the progress of grievance mitigation within 24 hours for the urgent issues and 7 days for the non- urgent issues.

I. ENVIRONMENTAL MANAGEMENT PLAN

1. Mitigation Measures

81. The major adverse effects of construction are increased traffic and ground disturbance. The environmental effects during operation are minor. If the increased traffic causes an issue with local residents, a scheduled time for shipments to and from the wharf can be created. The preferred foundation design of floating concrete pads is being proposed because it uses local materials and limits the ground disturbance.

82. To minimize loss of vegetative cover, the TPL will attempt to limit the amount of organic material removed from the site, limiting the construction environmental impact. Any organic material removed from the surface will remain on site and be placed in the corner of the property. An environmental management plan showing the stage-wise potential impacts, proposed

20 mitigation measures and responsible agency has been prepared in a matrix form and presented Table 6.

2. Monitoring and Reporting

83. Throughout implementation of the project, the Government and ADB will monitor the implementation progress and impacts of the project. Overall, the EMP will be implemented by the TERM-PIU through TPL. In consultation with TERM-PIU and ADB, the TPL will establish a system for preparing quarterly reports on safeguards performance monitoring, issues resolution, and corrective action plans.

84. An EMP will be part of the overall project monitoring and supervision, and will be implemented by the supervision consultant with oversight from the TPL. Progress on the preparation and implementation of an EMP will be included in the periodic project progress reports. Specific monitoring activities defined in the IEE and EMP will be carried out by EPC contractor and supervised by supervision consultant and monitored by TPL. TERM-PIU will submit semi-annual environmental monitoring reports on EMP implementation for ADB’s review.

85. In general, the overall extent of monitoring activities, including their scope and periodicity, should be commensurate with the project’s risks and impacts. TERM-PIU is required to implement safeguard measures and relevant safeguard plans, as provided in the project agreement.

86. Table 7 show the environmental monitoring plan outlining parameters and frequency of monitoring.

Table 6: Environmental Management Plan

Project activity Potential impact Proposed mitigation measure Mitigation Institutional Impleme /stage Cost responsibility ntation schedul e A. Pre-construction Project design Negligence of environmental Ensure that EMP is included in the Project cost TERM, TPL Tenderin mitigation measures bidding documents g process Location Land acquisition Compensation to affected people Project Cost TERM, TPL Prior to commen cement of civil work Site clearing Cutting of trees and removal Compensatory afforestation To be EPC Contractor Preparati of vegetative cover Included in & TPL on of site EPC prior to Contractor civil work cost. B. Construction Movement and Noise generated from - Not required due to working in To be EPC Contractor During operation of operation and movement of remote Included in & TPL land construction trucks and cranes area EPC clearing equipments - Machines noise level not more than Contractor and civil 85 cost. work construct dB(A) at avg. 8 hr ion Occupational Impacts on workers health - Provide Safety Manual To be EPC Contractor During Health and Safety due to working with - Provide Safety Plan Included in land trucks and piling cranes, - Supervision and Inspection EPC clearing Building construction, high - Protection gears Contractor and civil voltage work cost. work construct

Project activity Potential impact Proposed mitigation measure Mitigation Institutional Impleme /stage Cost responsibility ntation schedul e ion Transportation of Dust and particulate - Truck wheels cleaning To be EPC Contractor During equipments and emission from movement of - Road cleaning and watering Included in land construction construction vehicles EPC clearing material. transporting equipments and Contractor and civil construction material. cost. work construct ion C. Operation and Maintenance Cleaning of Solar Wastewater Generated from Provision and cleaning of adequate To be EPC Contractor Cleaning Panels cleaning of solar panels drainage system. Included in schedule EPC Contractor O&M cost. Health and Safety Health hazards in the event Emergency Response Plan O&M Cost EPC Contractor Emergen of accidents (cyclones, Health and Safety Plan cy during hurricanes) and emergency operatio n and mainten ance

Table 7: Environmental Monitoring Plan

Responsible Environmental party Aspect to be Monitored Time and Frequency of Monitoring Location Features (Implementation/ Supervision) Construction stage Noise Noise levels in dB(A) At the start of concerned activities - Project site EPC Contractor /

Responsible Environmental party Aspect to be Monitored Time and Frequency of Monitoring Location Features (Implementation/ Supervision) 3 times total - Front main road TPL Air Emission of dust and At the start of concerned activities - Project site EPC Contractor / particulate matter 3 times total - Front main road TPL Physical Works As specified in contractors’ Project site Project Site EPC Contractor / Progress plan Monthly TPL Occupational As specified in OHS plan Project site Project Site EPC Contractor / Health and Weekly TPL Safety Operation Stage Occupational As specified in OHS plan Project site Project Site EPC Contractor / Health and Weekly TPL Safety

3. Implementation Arrangement

87. The main institutions that will be involved in environmental management activities are TERM-PIU the project executing agency, Tonga Power Limited as implementing agency, supervision consultant, EPC contractor, and line agencies including the Ministry of Environment and Climate Change. MECC will approve the environmental assessment report as per national EIA Act.

88. TERM-PIU has overall responsibility for all aspects of the Project. TERM-PIU through TPL will be responsible for day to day management of technical aspects of the Project. TPL staff will be trained on managing the environmental issued associated with project. TERM-PIU will ensure the environmental management and monitoring budgets are available and utilized as necessary for timely implementation of EMP.

89. The Contractor will be required to have one staff with experience in environmental management. This staff will be responsible for day to day implementation of EMP.

4. Environmental Management Budget and Resources

90. The cost of all compensation and rehabilitations works will be an integrated part of the overall project cost, which will be borne by the project. The preliminary estimated cost of the environmental management including implementation and monitoring is US$ 20,000.

J. CONCLUSION AND RECOMMONDATION

91. The environmental impacts associated with proposed 200KWpeak ‘Eua solar power plant have been assessed and described in the previous sections of this document. The findings establish that the project site is not located in a sensitive ecosystem, and has no historical and cultural value. This nature of the project site coupled with the clean nature of solar power generation ensures that the Project will not cause any significant, lasting environmental and social impacts during construction, operation and decommissioning. Only minor and transient environmental disturbances would be experienced at the project site during construction and operation, and they will be minimized through implementation of the EMP. It is then recommended that the Project be considered environmentally and socially feasible, and that this IEE is adequate to justify environmental and social feasibility of the Project. There is no need for further analysis and the environmental and social assessment of the Project is considered complete.

92. It is concluded that the project has no further environmental issues to follow up, and the adequate measures listed in IEE and EMP, when implemented, will fully comply with ADB’s SPS 2009 and Government requirements.

APPENDIX 1: PHOTOGRAPHS (FIELD AND CONSULTATIONS)

A. Photographs (site and consultations)

[

Photo 1: Existing Power Generation station Photo 2: Discussion with Government (Left) and proposed site (right side open) for Officials from ‘Eua Island at Eua Solar Power Plant, ‘Eua Island

Photo 3: Consultation with households Photo 4: Onsite discussion with supervisor of customers in ‘Eua ‘Eua Generation Station at ‘Eua

APPENDIX 2: REA CHECKLIST

SOLAR ENERGY

Rapid Environmental Assessment (REA) Checklist

Instructions:

(i) The project team completes this checklist to support the environmental classification of a project. It is to be attached to the environmental categorization form and submitted to Environment and Safeguards Division (RSES) for endorsement by Director, RSES and for approval by the Chief Compliance Officer.

(ii) This checklist focuses on environmental issues and concerns. To ensure that social dimensions are adequately considered, refer also to ADB's (a) checklists on involuntary resettlement and Indigenous Peoples; (b) poverty reduction handbook; (c) staff guide to consultation and participation; and (d) gender checklists.

(iii) Answer the questions assuming the “without mitigation” case. The purpose is to identify potential impacts. Use the “remarks” section to discuss any anticipated mitigation measures.

Country/Project Title: Kingdom of Tonga / Outer Island Renewable Energy Project (200KWpeak ‘Eua Solar Power Plant)

PARD Sector Division:

Screening Questions Ye No Remarks s A. Project Siting The potential site for the Is the Project area adjacent to or within any of proposed power plant is located the following at Ohonua Village (on main ‘Eua environmentally sensitive areas? Islands) which is adjacent to the existing power station of the Tonga Power Limited. The project will be implemented on a land plot of 0.2 hectares which in non-residential land owned by TPL. There are no environmental sensitive areas reported in the project area. . Physical cultural heritage site X

Screening Questions Ye No Remarks s . Located in or near to legally protected area X

. Located in or near to special habitats for X biodiversity (modified or natural habitats)

. Wetland X Coastline if about 7 km away from the proposed site. . Mangrove X

. Estuarine X

. Offshore (marine) X Coastline if about 7 km away from the proposed site. B. Potential Environmental Impacts Will the Project cause…

. large scale land disturbance and land use X Existing TPL land will be used. impacts specially due to diversion of productive lands?

. involuntary resettlement of people? (physical X displacement and/or economic displacement)

. disproportionate impacts on the poor, women X and children, Indigenous Peoples or other vulnerable groups?

. noise, vibration and dust from construction X Minor short-term impact due to activities? noise generated from construction activities is expected. Suitable mitigation measures are included in the EMP. . an increase in local traffic during construction? X Expected. Transportation of construction equipments and construction material will increase the local traffic during construction. Mitigation measures are included in EMP. . environmental disturbances such as soil X Short-term disturbance due to erosion, land contamination, water quality noise from construction activities. deterioration, air pollution, noise and vibrations during construction phase?

Screening Questions Ye No Remarks s  aesthetic degradation and property value loss X due to establishment of plant and ancillary facilities?

. changes in flow regimes of the water intake X from surface water or underground wells due to abstraction for cooling purposes?

. pollution of water bodies and aquatic X Not expected. Wastewater ecosystem from wastewater treatment plant, generated will be collected and from cooling towers, and wash-water during disposed off after preliminary operation? treatment.

. a threat to bird or bat life from colliding with the X project facilities and/or being burned by concentrated solar rays?

. industrial liquid (dielectric fluids, cleaning X agents, and solvents) and solid wastes (lubricating oils, compressor oils, and hydraulic fluids) generated during construction and operations likely to pollute land and water resources?

. Soil/water contamination due to use of X Possible. Waste generated during hazardous materials or disposal of broken or construction will be handled of damaged solar cells (photovoltaic technologies carefully. contain small amounts of cadmium, selenium and arsenic ) during installation, operation and decommissioning?

. noise disturbance during operation due to the X proximity of settlements or other features?

. visual impacts due to reflection from solar X Not expected. Solar panels will collector arrays resulting in glint or glare? be installed with a tilt angel to avoid glare and reflection. . large population influx during project X Small scale construction. construction and operation that causes increased burden on social infrastructure and services (such as water supply and sanitation systems)?

. social conflicts between local laborers and X Small scale construction. Local those from outside the area? labour employment.

Screening Questions Ye No Remarks s . risks and vulnerabilities related to occupational X health and safety due to physical, chemical, biological, and radiological hazards during construction, installation, operation, and decommission?

. risks to community health and safety due to X the transport, storage, and use and/or disposal of materials and wastes such as explosives, fuel and other chemicals during construction, and operation?

. community safety risks due to both accidental X Controlled access will be and natural causes, especially where the provided. structural elements or components of the project are accessible to members of the affected community or where their failure could result in injury to the community throughout project construction, operation and decommissioning?

Climate Change and Disaster Risk Questions Yes No Remarks The following questions are not for environmental categorization purposes. However, the questions are included in this checklist to help the project team identify the potential climate and disaster risks of the project. . Is the Project area subject to hazards such as X earthquakes, floods, landslides, tropical cyclone winds, storm surges, tsunami or volcanic eruptions and climate changes (see Appendix I)?

. Could changes in precipitation, temperature, X Change in solar radiation will salinity, or extreme events over the Project affect the operation of the solar lifespan affect its sustainability or cost? power plant.

. Are there any demographic or socio-economic X aspects of the Project area that are already vulnerable (e.g. high incidence of marginalized populations, rural-urban migrants, illegal settlements, ethnic minorities, women or children)?

. Could the Project potentially increase the X climate or disaster vulnerability of the surrounding area (e.g., increasing traffic or housing in areas that will be more prone to flooding, by encouraging settlement in earthquake zones)?

Initial Environmental Examination

May 2012

Kingdom of Tonga: Outer Island Renewable Energy Project – Phase 1

(200 KWp Ha’apai Solar Power Plant)

Prepared by Tonga Power Limited (TPL), Government of Tonga for the Asian Development Bank

CURRENCY EQUIVALENTS (as of 31 March 2012)

Currency Unit = Tonga: pa'anga (TOP) TOP1.00 = US$ 0.59 US$1.00 = TOP 1.67

LIST OF ABBREVIATIONS

ADB – Asian Development Bank CFC - Chlorofluorocarbons EA – Executing Agency EIA - Environmental Impact Assessment EMP - Environmental Management Plan GoT – Government of Tonga GFP - Grievance Focal Points GHG - Green House Gases GRC – Grievance Redress Commission IA - Implementing Agency IEE - Initial Environmental Examination MECC - Ministry of Environment and Climate Change PCBs - polychlorinated biphenyl REA - Rapid Environmental Assessment SPS - Safeguard Policy Statement TA - Technical Assistance TERM - Tonga Energy Road Map TPL - Tonga Power Limited

NOTES

(i) The fiscal year (FY) of the Government of Tonga ends on 31 December. FY before a calendar year denotes the year in which the fiscal year ends, e.g., FY2011 ends on 31 December 2011.

(ii) In this report, "$" refers to US dollars

TABLE OF CONTENTS

Page A. EXECUTIVE SUMMARY 1 B. POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK 2 1. Government of Tonga Environmental Policies, Laws and Regulations 2 2. Environmental Assessment Process in Tonga 3 3. ADB’s Environmental Safeguard Requirements 3 4. Institutions 3 5. Extent of IEE Study 3 C. DESCRIPTION OF THE PROJECT 4 1. Project Background 4 2. Need of the Project 4 3. Location of Project 4 4. Project Components and Activities 5 5. Local Infrastructure Required 5 6. Implementation Arrangement 6 7. Project Benefits and Justification 6 D. DESCRIPTION OF THE ENVIRONMENT 10 1. Physical Resources 10 2. Ecological Resources 11 3. Socio-economic Resources 12 E. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES 13 1. Impacts and Mitigation Measures Due to Construction Activities 13 2. Impacts and Mitigation Measures from Operation 14 3. Cumulative Impacts 14 4. Social Impact 15 F. ANALYSIS OF ALTERNATIVES 15 G. CONSULTATIONS AND INFORMATION DISCLOSURE 15 1. Stakeholder / Community Consultations 15 2. Information Disclosure 17 H. GRIEVANCE REDRESS MECHANISM 17 I. ENVIRONMENTAL MANAGEMENT PLAN 18 1. Mitigation Measures 18 2. Monitoring and Reporting 18 3. Implementation Arrangement 21 4. Environmental Management Budget and Resources 21 J. CONCLUSION AND RECOMMONDATION 21 APPENDIX 1: PHOTOGRAPHS (FIELD AND CONSULTATIONS) 22 A. Photographs (site and consultations) 22 APPENDIX 2: REA CHECKLIST 24

A. EXECUTIVE SUMMARY

2. This is the Initial Environmental Examination (IEE) prepared for a 200 KWp Ha’apai Solar Power Plant proposed under this Project, located in Pangai village of Lifuka Island in Ha’apai. Based on the Government’s and ADB’s environmental policies, the proposed Ha’apai solar plant project is categorized as environmental category B project considering the most sensitive component. This IEE is prepared to meet the requirements of the Kingdom of Tonga as well as ADB’s Safeguard Policy Statement 2009 (SPS 2009) requirements. The scope of this IEE is limited to the proposed solar power plant only.

4. The project will require about 2000 sq.m (0.2 hectares) or 0.5 acre1 of land to install a 200 kWp capacity solar power plant. The site proposed for the solar power plant is located at Pangai Village of Lifuka Island in Ha’apai which is about 175km northeast of the national capital Nuku’alofa. The site is adjacent to the existing power plant of Tonga Power Limited which is on the west coast of Lifuka Island. The land use around the proposed site is rural (non-residential) with flat topography and vegetative cover. There are no sensitive areas on and around the proposed site. Currently the plot has about 25 coconut trees and keeper of the land is cultivating Kasava, Banana, and Kape crops on the proposed plot. Coastline is about 2.5 km away from the proposed site and there is no history of any flooding or water logging. There is no physical infrastructure of public interest, archaeological / religious importance in and around the proposed site. The land available adjacent to existing power plant is sufficient to accommodate the proposed plant size. Therefore requirement of additional alternate land is not envisaged.

5. The project does not have any significant long term impact. Some short-term impacts related to construction stage are expected. The main environmental impact will be during site preparation, which will include the cutting of about 25 coconut trees from proposed site and surrounding areas to prevent shading. Short-term impacts from noise and dust emissions are expected due to increase in traffic for transportation of equipments and construction material as well as operation of construction machineries. Operational impact includes visual effects due to installation of solar panels. All these impacts are manageable by implementing mitigation measures proposed in the environmental management plan.

6. Local communities and stakeholders were involved in process of preparing the IEE through onsite discussions. Views expressed were incorporated into the IEE and the planning and development of the project. As the project will have insignificant environmental and social impact, local communities and community leaders did not oppose to the project. They, however, sought assistance in community development and support for community cultural events. The IEE will be made available at public locations and will be disclosed to a wider audience via the ADB website. The consultation process will be continued and expanded during the project implementation to ensure that stakeholders are fully engaged in the project and have the opportunity to participate in its development and implementation.

1 Land requirement is estimated based on assumption that 1 KWp solar power requires about 8 sq.m. area for solar PV installation and space of access and distance between rows of panels.

7. The proposed Ha’apai solar power plant project will not cause any significant, lasting environmental and social impacts during construction, operation and decommissioning. Only minor and transient environmental disturbances would be experienced at the project site during construction and operation, and they will be minimized through implementation of the environmental management plan (EMP). It is then recommended that the Project be considered environmentally and socially feasible, and that this IEE is adequate to justify environmental and social feasibility of the Project. There is no need for further analysis and the environmental and social assessment of the Project is considered complete.

B. POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK

8. Environmental assessment of proposed project has been carried out in compliance with ADB and Government policies, legislation and requirements. Relevant international agreements have also been followed in the process of environmental assessment.

1. Government of Tonga Environmental Policies, Laws and Regulations

9. Some of the important laws relevant to the proposed renewable energy project focusing on environmental assessment are summarized in Table 1.

Table 1: Summary of Relevant Environmental Laws and Regulations of Government of Tonga Environmental Year Objective Legislation Passed Environmental Impact To provide for the application of environmental impact Assessment (EIA) 2003 assessment to the planning of development in Tonga. Act 2003 Environmental Impact To regulate major development projects and the applications of Assessment (EIA) 2010 notification consistent with the EIA Act 2003. Regulations 2010 Waste Management To manage and oversee the function of the Waste Management 2005 Act 2005 Board. 1976 To provide for the establishment of Parks and Reserves Authority Parks and Reserves (amended and for the establishment, preservation and administration of Parks Act 1976 in 1979 & and Reserves. 1988) To regulate living modified organisms and the applications of modern biotechno Biosafety Act 2009 2009 logy consistent with Tonga’s obligations and rights under the Convention on Biological Diversity and the Cartegena Protocol. To regulate the use of ozone depleting substances and to Ozone Layer implement the provisions of the Convention for the Protection of 2010 Protection Act 2010 the Ozone Layer and the Protocol on substances that deplete the ozone layer and for related purposes. To provide for the regulation and proper management of hazardous Hazardous Wastes wastes and chemicals in accordance with accepted international and Chemicals Act 2010 practices and the International Conventions applying to the use, 2010 transboundary movement and disposal of hazardous substances and for related purposes. 2008 Renewable Energy To regulate the use of renewable energy in the Kingdom and (amended Act 2008 related matters. in 2010) Environment To establish the Ministry of Environment & Climate Change to Management Act 2010 ensure the protection and proper management of the environment 2010 and the promotion of sustainable development.

Source: Ministry of Environment and Climate Change, Government of Tonga (www.mecc.gov.to)

2. Environmental Assessment Process in Tonga

10. Under the Tongan regulatory framework (the EIA Act 2003 and the EIA Regulations 2010), all development activities must be referred to the Minister of Environment and Climate Change, either directly or through the Determining Authority. With this notification, the proponent must complete a Determination of Category of Assessment form, providing an overview of the proposed development and a number of details in relation to the existing environment and potential environmental impacts and mitigation measures. The secretariat and the Minister determine whether the proposed development is a minor or major project, and advises the proponent within 30 days. If it is a major project, the proponent then submits a full Environmental Impact Assessment for review by the secretariat. The secretariat makes recommendations to the Environmental Assessment Committee. The Minister receives an assessment report and issues the approval (with or without conditions), a request for further information, or a rejection.

11. Under the EIA Act, a Schedule lists the projects considered as major projects. Electricity Generation Stations is listed as one of the major projects however; renewable energy generation projects such as this project has not been clearly stated in this Schedule. This IEE provides the information required for Ministry of Environment and Climate Change (MECC) to undertake their assessment process as required under the regulations as Major Project.

3. ADB’s Environmental Safeguard Requirements

12. This environmental assessment is carried out to ensure that potential adverse environmental impacts are addressed according to the ADB’s SPS 2009. 13. As per SPS 2009 the objectives of Environment Safeguards are to ensure the environmental soundness and sustainability of projects and to support the integration of environmental considerations into the project decision-making process. To help achieve the desired outcomes, ADB adopts a set of specific safeguard requirements that need to be achieved during the processing and implementation of projects financed by ADB. The environmental safeguard principles are stated in the Safeguard Policy Statement, which will guide environmental assessment process of projects. The SPS establishes the format for the presentation of the environmental assessment. ADB categorizes projects into categories A, B, C, and FI according to the significance of likely impacts.

14. Based on the Government’s and ADB’s environmental policies, the proposed Ha’apai solar plant is the project is categorized as category B project based on the most sensitive component. This IEE is prepared to meet the requirements of the Kingdom of Tonga as well as ADB’s Safeguard Policy Statement 2009 requirements.

15. Beside national and ADB policies, Tonga is a Party to several international environmental agreements of which the MECC is the National Focal Point or the Implementing Agency.

4. Institutions

16. The principal national agency charged with environmental protection is the Ministry of Environment and Climate Change (MECC). This Ministry was formally created by the Environmental Management Act 2010. The role of MECC is to protect the environment and promote sustainable development. MECC is also the agency required to respond to any complaints from the public about environmental issues.

5. Extent of IEE Study

17. The proposed project located in the outer Islands of Ha'apai (the main Island) is classified under ADB SPS 2009 as environment category ‘B’ project, requiring an IEE study. This is the IEE Report of

4 this project. The scope of IEE is limited to the power plant only. The purpose of this IEE is to assess potential environmental, health, safety and social impacts of the proposed projects. No significant adverse environmental impacts have been noted in this project assessment.

18. The IEE is prepared during the project preparation work in the months of February 2012-May 2012. The project is currently in bid preparation stage, and although there are no major changes in the project design and location of components, the IEE will be updated in line with the ADB SPS 2009.

19. The IEE study is conducted based on secondary information and primary data collected from various sources and field surveys. During the site visits the specialists had discussions with various stakeholders including town members and local executive powers for their feedback on the proposed project. The results of the social survey with village/town members as well as an evaluation of the institutional framework have been incorporated into this assessment.

C. DESCRIPTION OF THE PROJECT

1. Project Background

20. Like other Pacific islands countries, Tonga is also highly vulnerable to oil price shocks, affecting the affordability of food, goods, electricity, and transportation. This dependency consequently affecting the economic growth of the country. The proposed Outer Islands Renewable Energy Project will assist the government’s efforts to reducing the country’s heavy reliance on imported fossil fuels for power generation. By providing a secure, sustainable and environmentally-sound source of electricity for private and commercial consumers, it will implement 0.8 MWp solar power capacity connected to the existing diesel networks of Tonga’s outer islands of Vava’u, ‘Eua, and Ha’apai saving yearly about 750 tons of carbon dioxide (CO2).

2. Need of the Project

21. A project preparatory technical assistance (PPTA) is required to develop the Project in the three main outer island groups of Vava’u, ‘Eua, and Ha’apai. It will include (i) solar resource assessment, (ii) screening and site selection for one solar plant on each island group, (iii) preparation of conceptual feasibility studies for the selected schemes including all technical, economic, financial, environmental, legal and social considerations, and (iv) capacity strengthening program of Executing and Implementing Agencies, including customers. This report present the findings of the study carried out in Ha’apai Island.

3. Location of Project

22. All the physical components included in the project are located in Ha’apai, the Kingdom of Tonga. The proposed power plant site is located in Pangai Village of Lifuka Island of Ha’apai which is about 175km northeast of the national capital Nuku’alofa. The proposed site is adjacent to the exiting power plant of Tonga Power Limited at Pangai village, which is on the west coast of the Lifuka Island. Figure 1 shows the location map of the project facilities.

23. The project will need about 2000 sq.km (0.2 hectares) or 0.5 acre of land to install a 200 KWp capacity solar power plant in Ha’apai. The land available adjacent to exiting power plant is sufficient to accommodate the proposed plant size and there is no need for additional alternate land. This land belongs to the Government (King) which will be leased by TPL.

4. Project Components and Activities

24. The main activities of Outer Island Renewable Energy Project are summarized below: • Installation and commissioning of grid-connected solar power plant in Ha’apai Island with a capacity of 200 KWp. • Capacity building of TPL staff in planning and TPL customers in managing the electricity services. • Efficient Project Management services. 25. The scope of work under physical components comprise of various elements as described in following paragraphs.

26. The project will construct and operate 200KWp solar power plant. The plant will consist in a set of solar photovoltaic (PV) modules, power inverters, switchgear, associated protection, control and monitoring equipment, and associated civil works. The electricity output will be directly fed into existing distribution network of TPL for further distribution. Table 2 summarizes salient features of the Project.

Table 2: Salient Technical Features of the Project S. No. Component Features / Specifications 1. Solar Panels Approx. 1000 panels, poly-crystalline, photovoltaic Number of Panels (PV) Dimensions of each panel Rectangular, 2 m by 1 m Inclination 15 degrees Life Cycle 25 years 2. Loading Controllers 2 stations 3. DC-AC Inverters 100 kW, 2 units 4. Transformers 0.1 MVA (22kV/380V) 2 unit 5. Batteries To be define 6. Wires and other accessories As per locally available

5. Local Infrastructure Required

27. The local infrastructure required for the project are the roads, wharf and the pre-existing energy grid.

28. The roads and wharf will be needed to transport necessary materials and machineries only during construction. It will mean there is more traffic, particularly heavy traffic, on the road than usual. The distance from the wharf to the proposed site is short so few roads will be affected by this. Traffic level will return to normal after the construction of the solar plant is completed.

29. The solar plant will be connected to the existing grid and will feed it energy. Batteries are to be installed as part of the project to ensure smooth transition from solar plant to grid.

30. Although the existing TPL generation facility is operational 24 hours a day, it is not expected that the solar farm construction team will need to operate outside of normal daytime work hours.

6. Implementation Arrangement

31. Existing institutions will support the project implementation. TPL will be the project implementing agency, while the TERM- PIU will be the project executing agency. A project steering committee will be established to review project progress, coordinate inter-ministerial activities and guide the project management unit within the utility, supported by project implementation consultants.

32. The project implementation period will be 10 months tentatively scheduled to complete in the month of September 2014. The tendering process will began in April 2013 and expected to be completed in September 2013. Bid evaluation and contract will be awarded in October 2013. Installation work is expected to start in November 2012 and trial operation is scheduled on September 2014.

33. The project will provide operation and maintenance for the initial five years after completion and simultaneously be training TPL staff to carry out O&M themselves for remaining lifetime of the power plant.

7. Project Benefits and Justification

34. The successful implementation of this 200kWp power plant in Ha’apai Island as part of Outer Island Renewable Energy Project will result in reduction of annual diesel import for power generation to about 90,000 liters/year2 by 2018. Besides at least 973 HH in Ha’apai will be supplied with electricity generated from renewable sources, out of them at least 213 HH are using less than 11 units electricity per month.

35. In terms of solar energy, TPL consumers in Ha’apai will get at least 360 MWh3 of solar electricity supply every year. Besides this capacity of TPL staff will be enhanced on procurement, anticorruption, safeguards and operation and maintenance of solar-diesel hybrid energy systems. In terms of environment, the project will bring positive impacts by reducing gaseous emissions (CO2) from running of existing DG sets; reduction in noise from DG sets operations, reduction in land and ground water contaminations caused by spill of oil from DG sets. Overall proposed project will improve socio- economic conditions of the local communities in the targeted areas and will enhance the national Grass Domestic Product (GDP).

2 With a baseline of 2011 diesel consumption for power generation which is 150 million of liters. 3 The proposed 200kWp power plant is expected to generate about 360 MWh of solar electricity annually which will offset about 90000 litres of diesel per annum.

Figure 1: Locations of Project Areas on Country (Tonga) Map4

4 Source: http://www.lib.utexas.edu/maps/islands_oceans_poles/tonga_pol_1989.pdf

Figure 1a: Location of Project Area in Island Map

Image 1: View of existing TPL and proposed site for Solar Power Plant

Image 2: View of Proposed site from TPL Generation Plant

Image 3: View of Proposed site from the left side of TPL Generation Plant

Map 1: Map of Ha’apai Group showing proposed site

D. DESCRIPTION OF THE ENVIRONMENT

1. Physical Resources

1.1 Physiography, Land use and Demography

36. The Kingdom of Tonga is a Small Island Developing (SID) state located in the central South Pacific. It lies between 15º and 23º 30' South and 173º and 177º West. Tonga has a combined land and sea area of 720,000 km². It is an archipelago of 172 named islands with an area of 747km2 of which 36 islands are inhabited with an area of 649km2. Tonga had a total population of 103,036 (2011 census) compares to 101,991 at the Census of 2006, an increase of 1045 people over the 5 years.

37. Within Tonga there is a western line of islands of volcanic origin, steep topography and generally high elevations, and an eastern line of generally low-lying limestone and mixed geology islands. Amongst the western group are Tofua (507 m), Kao (1030 m), Late (519 m), Niuafo'ou (260 m), Niuatoputapu (106 m) and Tafahi (548 m). The eastern group where the majority of the population lives consists of Tongatapu (65 m), 'Eua (312 m) and most of the islands of the Ha'apai and Vava'u groups.

38. The Kingdom of Tonga consists of four clusters of islands extended over a north-south axis: Tongatapu (260sqkm); ‘Eua (87sqkm) in the south; Ha’apai (109sqkm) in the middle; Vava’u (121sqkm) in the north; Niuafo’ou and Niua Toputapu (72sqkm) in the far north. Tonga’s archipelago is situated at the subduction zone of the Indian-Australian and the Pacific tectonic plates and within the Ring of Fire where intense seismic activities occur.

39. The power plant in question is located in Ha’apai cluster which is geographical centre of the Kingdom’s four major groups. Ha’apai Group consists of 62 Islands covering a total land area of 110 sq. km. as per 2011 census, total population of Ha’apai is 6650 and 1268 households. The proposed power plant site is located at Pangai Village of Lifuka Island of Ha’apai which is about 175km northeast of the national capital Nuku’alofa. The proposed site is adjacent to the exiting power plant of Tonga Power Limited at Pangai village which is on west coast of Lifuka Island. The land use around the proposed site is rural (non-residential) with flat topography. Ha’apai has high volcanic and low limestone islands.

1.2 Meteorology and Climate

40. The climate of Tonga is tropical. Tonga lies within the south-east trade wind zone of the South Pacific. Wind speed over its surrounding oceans averages around 12 knots. Strong winds are not common except during tropical cyclone passages in summer (November- April) and gales from eastward migrating high-pressure systems during winter (May-October). Rainfall is moderate, with high relative humidity. Tonga’s annual rainfall is defined by two seasons, the Wet and Dry seasons. 41. Temperature variations throughout the Kingdom show an increase in daily and seasonal variations with increasing latitude. Mean annual temperatures vary from 27˚C at Niuafo’ou and Niuatoputapu to 24˚C on Tongatapu. Diurnal and seasonal variations can reach as high as 6°C throughout the island group. During the Hot Wet Season (November – April), the average temperature ranges from 27–29˚C whereas at Dry Cool Season (May – October), the average temperature ranges from 20–24˚C. 42. Tonga has seen an increasing trend in the occurrences of tropical cyclones. There is also evidence that the intensity of cyclones has increased since the 1980’s in Tonga. Since the 1960’s 4 cyclones have severely affected Tonga. Cyclone Flora in March, 1961 affected Vava’u and Ha’apai district, Cyclone Isaac in March, 1982 affected Ha’apai and Tongatapu and Cyclone Waka in

December, 2001 affected the northern group of Niua and Cyclone Renee in 2010 severely affected Tongatapu, Vava’u & Ha’apai groups. All of these cyclone events caused severe damages to crops and food supply, infrastructures, tourist resorts, the environment, buildings and disrupt essential services and the wellbeing of the people of affected community for a prolonged period of time.

43. Ha’apai has semi-tropical climate with mean monthly maximum and minimum temperatures are 25.50C and 23.5 0C, respectively. Average annual rainfall is 1619 mm, which is not usually sufficient to support plant growth during the dry season and frequent droughts occur in the period June - August. Soil erosion occurs as a result of high intensity rainfall (including hurricanes) during the wet season from November to March.

1.3 Geology, Soils and Mineral Resources

44. The Tongan archipelago lies roughly in a North - South direction. The soils of Tonga are derived from a mixture of volcanic ash and coral. Because island groups are isolated from each other, and are physically and economically different, the country is described in four parts. Most of the islands of Tonga have a soil layer overlying coral limestone. Soils vary from island to island. The soils are mainly derived from andesitic tephra (volcanic ash). Other soils include coral sands and lagoonal sands and mud. It is believed that the tephra was deposited by a series of volcanic eruptions from emergent volcanoes such as Tofua and Kao and from submarine volcanoes to the west. Ha’apai, is a group of 43 coral islands, with very low topography and coraline soils. Ha’apai has high volcanic and low limestone islands or atolls.

1.4 Water Resources

45. The freshwater resources of the Kingdom of Tonga consist mainly of groundwater in the form of freshwater lenses. Freshwater lenses form on top of seawater in many of the islands due to the difference in density of the two fluids. The interface, or boundary, between the two fluids is not sharp but rather is in the form of a transition zone. Within the transition zone the water salinity increases from that of freshwater to that of seawater over a number of metres. Surface water resources are only evident on some of the high volcanic and mixed geology islands in the form of springs and lakes. Crater lakes exist on the islands of Niuafo'ou and Tofua. It is reported that the former lake has been used in dry periods as a source of potable water. Surface water is collected from cave systems on the island of 'Eua and used for potable water supply.

46. Rainwater harvesting systems are a complementary freshwater resource, and an essential source of potable water on many of the islands. On the Ha'apai group they are the only source of freshwater. On most parts of the main islands of the Ha'apai group the depth from the surface to water table is higher being in the order of 5 to 8 m in many places and up to 15 and more metres in elevated parts of the islands.

2. Ecological Resources

2.1 Flora and Fauna

47. Tonga’s flora and fauna is limited in diversity. There is a wide variety of vegetation types throughout the islands of the Kingdom of Tonga. Indigenous vegetation includes a variety of rootcrops, fruit trees such as mangoes, tava, and a variety of citrus, and native vegetables and grasses. In the settled areas of the four Island Groups, much of the native vegetation has been cleared for coconut plantations, home gardens, villages, and commercial crops. A significant percentage of the country is now under coconut and Panicum grassland.

48. The major marine ecosystems in Tonga are: algal and seagrass beds; fringing and lagoon reefs; rocky coasts; beaches; open lagoons; marine lakes; marine caves and a submarine trench. The reefs

12 and lagoons are the prime fishery for subsistence supplies. The natural vegetation pattern shows secondary fallow vegetation in all island groups of Ha’apai. All islands have a cover of coconuts, and few other trees. The proposed site of the power plant is covered by vegetation including coconut trees and crops such as banana, kasava, and iko. There are two bird species and twelve plant species recognized as endemic to Tonga. None of these occur on Tongatapu

2.2 Forests and Protected Areas

49. Tonga’s protected area network consists of National Parks, Terrestrial and Marine Parks & Reserves Protected Area. Under the Parks and reserves Act of 1976, five marine parks have been designated on Tongatapu. The parks cover 250 hectares of coral reef, which is 10% of Tonga’s total coral system. None of the other island groups have marine parks although surveys have been conducted with this intention in mind. Table 3 present the overview of the protected area system in Tonga.

Table 3: Overview of Protected Area System in Tonga

PA category/type Quantity Surface area, Corresponding Management hectares IUCN category authority Marine Protected Areas, 1,003,729 IV-VI MECC protected seascape/ 8 marine reserves Managed resource terrestrial 6 2,100 II, V,VI Forestry & protected areas MECC Managed resource protected 9256.5 VI Fisheries areas/special management 6 areas (SMA) – community based. Strict Nature Reserve (SMAs 6 1,104.5 IA Fisheries – community based) Source: Data provided the Ministry of Environment and Climate Change

50. Although Tonga has large protected area network, none of these areas is located in the impact area of site proposed for the solar power plant in Ha’apai.

3. Socio-economic Resources

3.1 Human Resource and Pattern of Population

51. The population of Tonga is 106,036 distributed over 45 of its 172 islands. The annual population growth has occurred at an average of 0.2% since 2006, and is not expected to increase due to migration patterns. However, there is a real drift to the urban area of Nuku’alofa, with a population growth of 0.8%. In Ha’apai the annual growth rate is recorded -2.6% during this period. The official poverty line in Tonga has been established at $2586 per person per year in 2009. According to the Bureau of Statistics, 22% of people in Tonga are viewed as living below the poverty line.

52. In the social survey, households were asked to comment on level of power supply and fairness of pricing for a range of utility services including electricity. Most of the people agreed with the level of electricity supply. About 15-20% of their monthly income goes to the electricity consumption. Life in Tonga revolves around strong values of family and the Church, and has a well developed historic and contemporary national identity.

53. There will be no impacts on physical cultural resources through the implementation of the subproject.

3.2 Economic Development

54. The economy of Tonga is largely based in agriculture and fisheries. Subsistence agriculture plays an important role throughout Tonga. In addition, remittances sent from relatives working abroad play a significant part in the Tongan economy as a whole, and in the economy of individual households. The global financial crisis in recent times has impacted on this economic flow, increasing the level of hardship experienced by many families in Tonga. The Agriculture sector is the main contributor, in terms of GDP, to the economy of Tonga from 2000–2009. This is closely followed by Public Administration and Services. If we aggregate the data to the sectoral level then the Services Sector is revealed to be the highest contributor to the GDP. This indicates a gradual diversification from the Agricultural sector to the Services Sector.

3.3 Historical and Cultural Values

55. The project site and the surrounding areas are for mainly agricultural and non-residential land use, and have no important historical or cultural sites. There are no records of archeological findings in the project area.

E. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES

1. Impacts and Mitigation Measures Due to Construction Activities

56. The project will involve only minor civil work such as clearing of site, earth work and foundation for panels. Mechanical and electrical works will take place at various locations within a vast project site. The site preparation will involve only minor leveling, and thus will not significantly change the drainage pattern. The transportation of construction materials and project equipment will require about 10 truck trips per day during the working period of 8 hours. Considering the nature and scope of the construction works and the ecological insensitivity of the project site, it is certain that only minor and manageable environmental disturbances will be created during construction, with minimum impact on nearby communities and the natural environment. Environmental disturbances during construction will be small and transient, such as dust, noise, incremental traffic loads on the roads, and gaseous emissions created by trucks and heavy construction equipment. Preliminary estimates of the incremental increases in ambient dust and noise levels during construction were made and were found to be marginal.

57. The project will require about 0.2 hectare of land which will be taken on lease by TPL. Therefore there is no need for any land acquisition. Clearing of land by cutting of about 25 coconut trees and trimming of some trees on surrounding areas will have some adverse impacts on the environment. Cuttings of trees will be compensated by planting additional trees. Necessary budget will be provided for planting trees. Cutting and planting of trees will be done in coordination with local offices of the Lands and Surveys Department, and Forestry Department.

58. The construction will require not more than 50 workers, who will reside outside the project site. No groundwater will be tapped at the project site as the project site has low groundwater potential. The water required for construction (concrete mixing) and consumption will be brought in from outside sources. Domestic wastewater generated by the construction workers would not be more than 10 cubic meters per day and will be treated either in a small centralized package treatment plant or by individual septic tanks, one for each toilet.

59. The nature of the construction works indicates that no toxic or hazardous materials will be used, apart from fuel oils for vehicles, which will be properly stored. Construction wastes will be sorted out by the contractors for recycling. The residual wastes will be properly handled by the relevant municipal units for waste disposal.

2. Impacts and Mitigation Measures from Operation

60. Unlike thermal power plants, the operation of the project solar power plant will have negligible environmental impact on the site during operation. There will be no waste products, no requirements for cooling, no moving parts, no noise, and no impact on flora and fauna.

61. After construction, the project impacts will diminish. After construction, traffic to and from the Ha’apai Power Plant site will reduce to present levels. The solar facilities contribution to noise in the vicinity will be undetectable and definitely insignificant compared to that of the adjacent diesel generators.

62. The largest impact could be visual with the addition of the solar panel arrays on the site, including the possibility of some glare from the panels, even though they are designed to absorb the incident solar radiation. The arrays will be less than 3m high at their peak, and will be on a fixed 20 degree angle facing due north. However, the proposed site for the array is currently bounded by dense vegetation in three sides and on one side it has existing diesel generated power plant. Given the flatness of the land, the existing vegetation on three side, diesel tank and generation building on other side, the visual impact from the Ha’apai Solar Power Plant will be insignificant. 63. The water to be used for washing of the solar panels will be used from outside sources. The wastewater generated by washing will be drained out by providing adequate drainage facilities.

64. Ha’apai is vulnerable to the tropical cyclones and hurricanes. The foundations and racking system will be designed to withstand powerful cyclones and hurricanes, which will limit the probability of generation unavailability as well as reducing any potential hazard of panels being lifted up and blown onto adjacent properties.

65. The project will use transformers of forced-oil and forced-air-cool designs, which do not use polychlorinated biphenyl (PCB). Therefore, there will be no PCB disposal problem.

66. Only about 20 staff will operate the project facilities. Domestic wastes generated by this small number of people could be readily handled by conventional practices.

67. Emergency response plan including occupational health and safety plan will be adopted to handle emergency situation during the operation period. Workers will be trained to deal with the emergency situations.

68. The Project’s solar PV panels are expected to have an economic life of 25 years. The suppliers will accept the decommissioned solar PV panels for recycling based on the thin-film technologies and their update. Dismantling of the PV panels will be handled by suppliers that offer the best price for used PV panels in the future. Similarly the project will require the use of batteries which will need proper disposal and recycling of the lead and the acid that is contained in the batteries after 10 years of operation. The disposal of the batteries will be handled by suppliers.

3. Cumulative Impacts

69. The Ha’apai Solar Power Plant will be located adjacent to the existing diesel generation power station of TPL which consists of three diesel generation and a diesel storage tank. While the facility

will result in a large number of new solar array structures, these will be no higher than 3m and visual impact on neighbouring properties will be limited by existing vegetation along their boundaries.

70. Presently, there is no future development or expansion plan either of existing diesel power plant or any other infrastructure by government. Therefore, there will be no negative cumulative environmental effects of constructing an additional solar farm.

4. Social Impact

71. The project has no resettlement or indigenous peoples (IPs) issues. The land proposed for the power plant belongs to the King (Government) which TPL plan to take on lease. Currently keeper of the land is cultivating seasonal crops and he will be allowed to harvest the crops before the project starts construction, in line with the requirements of the ADB’s Safeguard Policy Statement (2009) for negotiated settlement. To ensure his livelihood there is possibility that the keeper will be employed by the project. Therefore, there will be no relocation issue. The project site has no people identified as IPs. The project is therefore expected to be classified as category C for both involuntary resettlement and IPs.

F. ANALYSIS OF ALTERNATIVES

72. With and without project alternative were analyzed and it is found that the Tonga would continue to pay heavy price for diesel import which will affect the overall economic development of the country and the Islands. Implementation of project will bring positive economic, social and environmental benefits. Economic benefits will be from the reduction in import of diesel for power generation. Social benefits will be from sustainable electricity supply to the consumers and environmental benefits will be from reduction in emission from DG sets by reducing diesel transport, storage, spills and emissions; reduction in noise levels from DG sets being currently operated by power station. Also as part of capacity building of local technicians in implementation and operation of solar and other renewable energy projects, future projects will be benefit from the learning from the construction and operation of the site.

73. Alternative sites were considered, but the proposed site in Ha’apai was considered the best location for the solar power plant as it is adjacent to the existing TPL diesel power generation plant, easy access to distribution network, providing existing facilities (network, access roads), security and operational workforce that will reduce capital and operating costs. The land has low environmental or residential value, given the existing power generation operations and leases in place. The Project’s technical team is reviewing the technical aspects and conceptual designs of potential PV panels and battery suppliers and the best configurations that would meet TPL’s requirements will be selected.

G. CONSULTATIONS AND INFORMATION DISCLOSURE

1. Stakeholder / Community Consultations

74. As part of environmental assessment, stakeholders and community consultations were carried out during field visits. The details of such consultation carried out during reconnaissance field visits are presented in Table 4 and Table 5. Also, a number of officials from various agencies, i.e., the Tonga Power Limited, Office of the Governor of Ha’apai Island, Department of Lands and Surveys, etc., were consulted during the fact finding visit. The consultations included both discussions with stakeholders and discussions with village/district level authorities.

75. Consultation will continue at next stages i.e. after finalization of detailed design and before start of the civil works construction as well as at implementation stage.

Table 4: List of Stakeholder / Communities Consulted during Field Visits in Ha’apai

Sl. No. Name Designation and Organization Contact No. NUKU’ALOFA 1. John van Bribk Chief Executive, Tonga Power Limited, 7863202 Nuku’alofa 2. Lano Fonua Liaison Officer, Tonga Power Limited, Nuku’alofa 3. Seini Fotu Conservation Officer -Biodiversity, Department of Environment, Ministry of Environment and Climate Change, Government of Tonga, Nuku’alofa 4. Richard ‘Atelea Kantoke GIS Specialist, GIS Unit, Ministry of Lands, Surveys and Natural Resources, Government of Tonga, Nuku’alofa 5. Makameone Senior GIS Technician, GIS Unit, Ministry of 8895909 Lands, Surveys and Natural Resources, Government of Tonga, Nuku’alofa

HA’APAI GROUP 6. Viliami Latu Representative, Governor’s Office, Ha’apai 7748993 7. Samuela Fakatou Sub-treasurer, Finance Department, Ha’apai 7755154 8. Simote Mahe Lands Officer, Department of Lands and 7757616 Survey, Ha’apai 9. Taufa Vaka Manager, Tonga Power Limited, Ha’apai 10. Taniela Latu’ila Technician, Ha’apai Power Station, Tonga Power Limited, Ha’apai 11. District Officer, Fao Island 12. Women Groups (3) Ha’apai Island and Fao Island

Table 5: Summary of Stakeholder / Community Consultation Undertaken During Visits of Sample Sites Date / Venue / No. Issues discussed / remarks5 of participants 10 April 2012/ Representatives from the Ha’apai Governor’s office were informed about that Governors Office and proposed solar power plant project. They welcomed that project as it will Lands and Survey ensure the sustainability of power supply to the Island. Officials informed Department, Ha’apai mission that they will support the project by providing full cooperation in / 10 implementing the project including providing local level clearances if required. They informed that they do not foresee any adverse impacts on the environment because of this Project.

Maps and Layout of the existing and proposed sites were collected from Lands and Surveys Department. Lands officer informed that there are no sensitive areas on and around the site proposed for the power plant. It is also

5 Queries raised by people were answered to their satisfaction and it was assured that their concerns will be addressed in the process of project design.

Date / Venue / No. Issues discussed / remarks5 of participants confirmed from the government records that land proposed for the power plant belongs to the King which can be leased to PPL for the proposed project. The existing power plant is also installed on the land leased by the King to TPL.

10 April 2012/ TPL Information about existing plant, status of land proposed for power plant, Ha’apai Office and presence of environmental sensitive areas on and around the proposed site, generation plant / 04 existing capacity of TPL in managing environmental issues were assessed. It is informed by TPL that the land proposed for solar power plant belongs to the Government (King). TPL can take this land on lease for the power plant. TPL informed that there are no environmental sensitive areas in and around the proposed site and land use is agricultural. Local communities are growing seasonal crops on the proposed land without any formal lease. TPL informed that it has sufficient capacity to manage environmental impacts associated with operation of existing diesel as well as proposed solar power plant. However, they requested trainings on ADB’s environment policy and environmental assessment requirements. 11 April 2012/ Discussions were held together with social specialist to inform communities Governor’s Office, about the proposed project and understand their concerns, if any. Pengai Villlage, Communities were informed about the benefits both socio-economic as well Ha’apai / two women as environmental benefits of the project. All the participants consulted fully groups’ groups (13 support the project. participants from various agenices) Attendance sheet attached. 16 April 2012/ Scope of proposed project, national policy and regulatory framework as well Ministry of as requirements for permits and EIA approval were discussed with officials Environment and from MECC. Climate Change /02

76. Local communities and community leaders are well aware of and fully support the proposed project, as the installation of solar power plant will bring benefits to the Island in terms of improved and sustainable electricity supply, improve the overall economy situation by saving in cost of imported diesel and some employment opportunities. Attachment 2 shows the photographic record of the consultations undertaken during preparation of the IEE.

2. Information Disclosure

77. All environmental documents are subject to public disclosure, and therefore will be made available to the public. The IEE has to be disclosed on ADB’s website upon receipt. TPL will ensure that meaningful public consultations, particularly with project affected persons, if any, are undertaken.

H. GRIEVANCE REDRESS MECHANISM

78. The process for solving safeguards complaints that may arise in the project is the grievance redress mechanism. Local people, once they feel that adverse and material harm is caused by the Project, can directly contact community leaders or Tonga Power Limited (TPL) office. TPL firstly obtain the information from the complainer as much as possible to identify source of the problem and inform operation division. When the operation receives the information from TPL, they will find out if the complaint is caused from their operation. Once verified that the problem/complaint is due to

18 operations, TPL will take the necessary corrective action plan to fully resolve the complaints about its safeguards performance. TPL will inform and update the complainant about the progress of grievance mitigation within 24 hours for the urgent issues and 7 days for the non-urgent issues.

I. ENVIRONMENTAL MANAGEMENT PLAN

1. Mitigation Measures

79. The major adverse effects of construction are increased traffic and ground disturbance. The environmental effects during operation are minor. If the increased traffic causes an issue with local residents, a scheduled time for shipments to and from the wharf can be created. The preferred foundation design of floating concrete pads is being proposed because it uses local materials and limits the ground disturbance.

80. The cutting of trees and clearing of the top soil will have a definite impact on the vegetative site in appearance and habitat. TPL will attempt to limit the amount of organic material removed from the site, limiting the construction environmental impact. Any organic material removed from the surface will remain on site and be placed in the southeast corner of the property. An environmental management plan showing the stage-wise potential impacts, proposed mitigation measures and responsible agency has been prepared in a matrix form and presented Table 6.

2. Monitoring and Reporting

81. Throughout implementation of the project, the Government and ADB will monitor the implementation progress and impacts of the project. Overall, the EMP will be implemented by the TERM-PIU through TPL. In consultation with TERM-PIU and ADB, the TPL will establish a system for preparing quarterly reports on safeguards performance monitoring, issues resolution, and corrective action plans.

82. An EMP will be part of the overall project monitoring and supervision, and will be implemented by the supervision consultant with oversight from the TPL. Progress on the preparation and implementation of an EMP will be included in the periodic project progress reports. Specific monitoring activities defined in the IEE and EMP will be carried out by EPC contractor and supervised by supervision consultant and monitored by TPL. TERM-PIU will submit semi-annual environmental monitoring reports on EMP implementation for ADB’s review. 83. In general, the overall extent of monitoring activities, including their scope and periodicity, should be commensurate with the project’s risks and impacts. TERM-PIU is required to implement safeguard measures and relevant safeguard plans, as provided in the project agreement.

84. Table 7 show the environmental monitoring plan outlining parameters and frequency of monitoring.

Table 6: Environmental Management Plan

Project activity Potential impact Proposed mitigation measure Mitigation Cost Institutional Implementation /stage responsibility schedule A. Pre-construction Project design Negligence of environmental Ensure that EMP is included in the Project cost TERM, TPL Tendering mitigation measures bidding documents process Location Land acquisition Compensation to affected people Project Cost TERM, TPL Prior to commencement of civil work Site clearing Cutting of trees and removal of Compensatory afforestation To be EPC Preparation of vegetative cover Included in Contractor & site prior to civil EPC Contractor TPL work cost. B. Construction Movement and Noise generated from operation - Not required due to working in remote To be EPC During land operation of and movement of trucks and area Included in Contractor & clearing and civil construction cranes TPL work - Machines noise level not more than 85 EPC Contractor equipments cost. construction dB(A) at avg. 8 hr Occupational Health Impacts on workers health due to - Provide Safety Manual To be EPC During land and Safety working with - Provide Safety Plan Included in Contractor clearing and civil trucks and piling cranes, Building - Supervision and Inspection EPC Contractor work construction, high voltage work - Protection gears cost. construction Transportation of Dust and particulate emission - Truck wheels cleaning To be EPC During land equipments and from movement of construction - Road cleaning and watering Included in Contractor clearing and civil construction material. vehicles transporting equipments EPC Contractor work and construction material. cost. construction C. Operation and Maintenance Cleaning of Solar Wastewater Generated from Provision and cleaning of adequate To be Included in EPC Cleaning Panels cleaning of solar panels drainage system. EPC Contractor schedule Contractor O&M cost. Health and Safety Health hazards in the event of Emergency Response Plan O&M Cost EPC Emergency accidents (cyclones, hurricanes) Health and Safety Plan Contractor during operation and emergency and maintenance

Table 7: Environmental Monitoring Plan

Responsible party Environmental Aspect to be Monitored Time and Frequency of Monitoring Location Features (Implementation/ Supervision) Construction stage Noise Noise levels in dB(A) At the start of concerned activities - Project site EPC Contractor / TPL 3 times total - Front main road Air Emission of dust and particulate At the start of concerned activities - Project site EPC Contractor / TPL matter 3 times total - Front main road Physical Works As specified in contractors’ plan Project site Project Site EPC Contractor / TPL Progress Monthly Occupational As specified in OHS plan Project site Project Site EPC Contractor / TPL Health and Safety Weekly Operation Stage Occupational As specified in OHS plan Project site Project Site EPC Contractor / TPL Health and Safety Weekly

3. Implementation Arrangement

85. The main institutions that will be involved in environmental management activities are TERM- PIU the project executing agency (EA), Tonga Power Limited as implementing agency, supervision consultant, EPC contractor, and line agencies including the Ministry of Environment and Climate Change (MECC). MECC will approve the environmental assessment report as per national EIA Act.

86. TERM-PIU has overall responsibility for all aspects of the Project. TERM-PIU through TPL will be responsible for day to day management of technical aspects of the Project. TPL staff will be trained on managing the environmental issued associated with project. TERM-PIU will ensure the environmental management and monitoring budgets are available and utilized as necessary for timely implementation of EMP.

87. The Contractor will be required to have one staff with experience in environmental management. This staff will be responsible for day to day implementation of EMP.

4. Environmental Management Budget and Resources

88. The cost of all compensation and rehabilitations works will be an integrated part of the overall project cost, which will be borne by the project. The preliminary estimated cost of the environmental management including implementation and monitoring is US$ 20,000.

J. CONCLUSION AND RECOMMONDATION

89. The environmental impacts associated with proposed 200KWpeak Ha’apai solar power plant have been assessed and described in the previous sections of this document. The findings establish that the project site is not located in a sensitive ecosystem, and has no historical and cultural value. This nature of the project site coupled with the clean nature of solar power generation ensures that the Project will not cause any significant, lasting environmental and social impacts during construction, operation and decommissioning. Only minor and transient environmental disturbances would be experienced at the project site during construction and operation, and they will be minimized through implementation of the EMP. It is then recommended that the Project be considered environmentally and socially feasible, and that this IEE is adequate to justify environmental and social feasibility of the Project. There is no need for further analysis and the environmental and social assessment of the Project is considered complete.

90. It is concluded that the project has no further environmental issues to follow up, and the adequate measures listed in IEE and EMP, when implemented, will fully comply with ADB’s SPS 2009 and Government requirements.

APPENDIX 1: PHOTOGRAPHS (FIELD AND CONSULTATIONS)

A. Photographs (site and consultations)

[

Photo 1: Existing Power Generation station (front) and Photo 2: Onsite discussion with supervisor of Ha’apai proposed site (backside) for Solar Power Plant, Pangai Generation Station at Pangai Village, Ha’apai Village, Lifuka Island, Ha’apai

Photo 3: Representative from Governor’s Office Photo 4: Group work in Progress with Women Group at discussing project with Women Group and Project Governor’s Office. Lifuka Island, Ha’apai Team at Governor’s Office. Lifuka Island, Ha’apai

Photo 3: Consultation with District Officer of ‘Fao Photo 4: Consultation with women group in ‘Fao Island, Island, Ha’apai Ha’apai

APPENDIX 2: REA CHECKLIST

SOLAR ENERGY

Rapid Environmental Assessment (REA) Checklist

Instructions:

(iii) Answer the questions assuming the “without mitigation” case. The purpose is to identify potential impacts. Use the “remarks” section to discuss any anticipated mitigation measures.

Country/Project Title: Kingdom of Tonga / Outer Island Renewable Energy Project (200KWpeak Ha’apai Solar Power Plant)

PARD Sector Division:

Screening Questions Yes No Remarks A. Project Siting The proposed site is located adjacent to Is the Project area adjacent to or within any of the following the existing power plant of Tonga Power environmentally sensitive areas? Limited at Pangai village which is on west coast of Lifuka Island in Ha’apai. The project will be implemented on a land plot of 0.2 hectares which in non- residential land. There are no environmental sensitive areas reported in the project area. . Physical cultural heritage site X

. Located in or near to legally protected area X

. Located in or near to special habitats for biodiversity X (modified or natural habitats)

. Wetland X Coastline if about 2 km away from the proposed site. . Mangrove X Mangroves along the coastline which is about 2 km away from the proposed site. . Estuarine X

. Offshore (marine) X Coastline if about 2 km away from the proposed site.

Screening Questions Yes No Remarks B. Potential Environmental Impacts Will the Project cause…

. large scale land disturbance and land use impacts X Possible. The project will change land specially due to diversion of productive lands? use because of installation of solar panels on 0.2 hectares of land which currently has coconut trees and vegetative cover. . involuntary resettlement of people? (physical X displacement and/or economic displacement)

. disproportionate impacts on the poor, women and X children, Indigenous Peoples or other vulnerable groups?

. noise, vibration and dust from construction activities? X Minor short-term impact due to noise generated from construction activities is expected. Suitable mitigation measures are included in the EMP. . an increase in local traffic during construction? X Expected. Transportation of construction equipments and construction material will increase the local traffic during construction. Mitigation measures are included in EMP. . environmental disturbances such as soil erosion, land X Short-term disturbance due to noise from contamination, water quality deterioration, air pollution, construction activities. noise and vibrations during construction phase?

 aesthetic degradation and property value loss due to X establishment of plant and ancillary facilities?

. changes in flow regimes of the water intake from surface X water or underground wells due to abstraction for cooling purposes?

. pollution of water bodies and aquatic ecosystem from X Not expected. Wastewater generated will wastewater treatment plant, from cooling towers, and be collected and disposed off after wash-water during operation? preliminary treatment.

. a threat to bird or bat life from colliding with the project X facilities and/or being burned by concentrated solar rays?

. industrial liquid (dielectric fluids, cleaning agents, and X solvents) and solid wastes (lubricating oils, compressor oils, and hydraulic fluids) generated during construction and operations likely to pollute land and water resources?

. Soil/water contamination due to use of hazardous X Possible. Waste generated during materials or disposal of broken or damaged solar cells construction will be handled of carefully. (photovoltaic technologies contain small amounts of cadmium, selenium and arsenic ) during installation, operation and decommissioning?

. noise disturbance during operation due to the proximity X of settlements or other features?

Screening Questions Yes No Remarks . visual impacts due to reflection from solar collector X Not expected. Solar panels will be arrays resulting in glint or glare? installed with a tilt angel to avoid glare and reflection. . large population influx during project construction and X Small scale construction. operation that causes increased burden on social infrastructure and services (such as water supply and sanitation systems)?

. social conflicts between local laborers and those from X Small scale construction. Local labour outside the area? employment.

. risks and vulnerabilities related to occupational health X and safety due to physical, chemical, biological, and radiological hazards during construction, installation, operation, and decommission?

. risks to community health and safety due to the transport, X storage, and use and/or disposal of materials and wastes such as explosives, fuel and other chemicals during construction, and operation?

. community safety risks due to both accidental and X Controlled access will be provided. natural causes, especially where the structural elements or components of the project are accessible to members of the affected community or where their failure could result in injury to the community throughout project construction, operation and decommissioning?

. Could changes in precipitation, temperature, salinity, or X Change in solar radiation will affect extreme events over the Project lifespan affect its the operation of the solar power plant. sustainability or cost?

. Are there any demographic or socio-economic aspects X of the Project area that are already vulnerable (e.g. high incidence of marginalized populations, rural-urban migrants, illegal settlements, ethnic minorities, women or children)?

. Could the Project potentially increase the climate or X disaster vulnerability of the surrounding area (e.g., increasing traffic or housing in areas that will be more prone to flooding, by encouraging settlement in earthquake zones)?

Initial Environmental Examination

May 2012

Kingdom of Tonga: Outer Island Renewable Energy Project – Phase 1

(400 KWp Vava’u Solar Power Plant)

Prepared by Tonga Power Limited (TPL), Government of Tonga for the Asian Development Bank.

CURRENCY EQUIVALENTS (as of 31 March 2012)

Currency Unit = Tonga: pa'anga (TOP) TOP1.00 = US$ 0.59 US$1.00 = TOP 1.67

LIST OF ABBREVIATIONS

ADB – Asian Development Bank CFC - Chlorofluorocarbons EA – Executing Agency ED - Ecology Department EIA - Environmental Impact Assessment EMP - Environmental Management Plan GoT – Government of Tonga GFP - Grievance Focal Points GHG - Green House Gases GRC – Grievance Redress Commission IA - Implementing Agency IEE - Initial Environmental Examination MECC - Ministry of Environment and Climate Change PCBs - polychlorinated biphenyl REA - Rapid Environmental Assessment SPS - Safeguard Policy Statement TA - Technical Assistance TERM - Tonga Energy Road Map TPL - Tonga Power Limited

NOTES

(i) The fiscal year (FY) of the Government of Tonga ends on 31 December. FY before a calendar year denotes the year in which the fiscal year ends, e.g., FY2011 ends on 31 December 2011.

(ii) In this report, "$" refers to US dollars

TABLE OF CONTENTS

Page A. EXECUTIVE SUMMARY 1 B. POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK 2 1. Government of Tonga Environmental Policies, Laws and Regulations 2 2. Environmental Assessment Process in Tonga 3 3. ADB’s Environmental Safeguard Requirements 3 4. Institutions 3 5. Extent of IEE Study 3 C. DESCRIPTION OF THE PROJECT 4 1. Project Background 4 2. Need of the Project 4 3. Location of Project 4 4. Project Components and Activities 5 5. Local Infrastructure Required 5 6. Implementation Arrangement 6 7. Project Benefits and Justification 6 D. DESCRIPTION OF THE ENVIRONMENT 9 1. Physical Resources 9 2. Ecological Resources 10 3. Socio-economic Resources 11 E. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES 12 1. Impacts and Mitigation Measures Due to Construction Activities 12 2. Impacts and Mitigation Measures from Operation 13 3. Cumulative Impacts 14 4. Social Impact 14 F. ANALYSIS OF ALTERNATIVES 14 G. CONSULTATIONS AND INFORMATION DISCLOSURE 14 1. Stakeholder and Community Consultations 14 2. Information Disclosure 16 H. GRIEVANCE REDRESS MECHANISM 17 I. ENVIRONMENTAL MANAGEMENT PLAN 17 1. Mitigation Measures 17 2. Monitoring and Reporting 17 3. Implementation Arrangement 20 4. Environmental Management Budget and Resources 20 J. CONCLUSION AND RECOMMONDATION 20 APPENDIX 1: PHOTOGRAPHS (FIELD AND CONSULTATIONS) 21 A. Photographs (site and consultations) 21 APPENDIX 2: REA CHECKLIST 22

A. EXECUTIVE SUMMARY

2. This is the Initial Environmental Examination (IEE) prepared for a 400 KWp Vava’u Solar Power Plant proposed under this Project, located in Neiafu village on the main island of Vava’u Group. Based on the Government’s and ADB’s environmental policies, the proposed Vava’u solar plant project is categorized as environmental category B project considering the most sensitive component. This IEE is prepared to meet the requirements of the Kingdom of Tonga as well as Asian Development Bank’s (ADB’s) Safeguard Policy Statement 2009 (SPS 2009) requirements. The scope of this IEE is limited to the proposed solar power plant only.

3. The project will construct and operate 400KWp solar power plant. The plant will consist in a set of solar photovoltaic (PV) modules, power inverters, switchgear, associated protection, control and monitoring equipment, and associated civil works. The electricity output will be directly fed into existing distribution network of Tonga Power Limited (TPL).

4. The project will require about 4000 sq.m (0.4 hectares) or 1.0 acre1 of land to install a 400 kWp capacity solar power plant. The proposed power plant site is located opposite side to the existing Taumu’aloto power station, near to downtown Neiafu on the main island of the Vava’u group. The land use around the proposed site is non-residential with flat topography and situation on opposite side of the existing Taumu’aloto power station of TPL. The site is separated by Laifone road, which is a fairly main road provide easy transportation of material. The existing plot of land has vegetative cover with coconut trees. This land belongs to the Government (King) but keeper of the land growing seasonal crops on the proposed plot without any formal lease agreement. There are no sensitive areas on and around the proposed site. Currently there are about 50 coconut trees and local crops i.e. Kasava, Banana etc. crops are being cultivated on the proposed plot. Coastline is about 1.0 km away from the proposed plant. There is no physical infrastructure of public interest, archaeological / religious importance in and around the proposed site. The land available opposite to the existing Taumu’aloto power station is sufficient to accommodate the proposed plant size and there is no need for additional alternate land.

5. The project does not have any significant long term impact. Some short-term impacts related to construction stage are expected. The main environmental impact will be during site preparation, which will include the cutting of more than 100 coconut trees from proposed site and surrounding areas to prevent shading. Short-term impacts from noise and dust emissions are expected due to increase in traffic for transportation of equipments and construction material as well as operation of construction machineries. Operational impact includes visual effects due to installation of solar panels. All these impacts are manageable by implementing mitigation measures proposed in the environmental management plan.

1 Land requirement is estimated based on assumption that 1 KWp solar power requires about 8 sq.m. area for solar PV installation and space of access and distance between rows of panels.

7. The proposed Vava’u solar power plant project will not cause any significant, lasting environmental and social impacts during construction, operation and decommissioning. Only minor and transient environmental disturbances would be experienced at the project site during construction and operation, and they will be minimized through implementation of the environmental management plan (EMP). It is then recommended that the Project be considered environmentally and socially feasible, and that this IEE is adequate to justify environmental and social feasibility of the Project. There is no need for further analysis and the environmental and social assessment of the Project is considered complete.

B. POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK

1. Government of Tonga Environmental Policies, Laws and Regulations

9. Some of the important laws relevant to the proposed renewable energy project focusing on environmental assessment are summarized in Table 1.

Table 1: Summary of Relevant Environmental Laws and Regulations of Government of Tonga Environmental Year Objective Legislation Passed Environmental Impact To provide for the application of environmental impact Assessment (EIA) 2003 assessment to the planning of development in Tonga. Act 2003 Environmental Impact To regulate major development projects and the applications of Assessment (EIA) 2010 notification consistent with the EIA Act 2003. Regulations 2010 Waste Management To manage and oversee the function of the Waste Management 2005 Act 2005 Board. 1976 To provide for the establishment of Parks and Reserves Authority Parks and Reserves (amended and for the establishment, preservation and administration of Act 1976 in 1979 & Parks and Reserves. 1988) To regulate living modified organisms and the applications of obligations and Biosafety Act 2009 2009 modern biotechnology consistent with Tonga’s rights under the Convention on Biological Diversity and the Cartegena Protocol. To regulate the use of ozone depleting substances and to Ozone Layer implement the provisions of the Convention for the Protection of 2010 Protection Act 2010 the Ozone Layer and the Protocol on substances that deplete the ozone layer and for related purposes. To provide for the regulation and proper management of Hazardous Wastes hazardous wastes and chemicals in accordance with accepted and Chemicals Act 2010 international practices and the International Conventions applying 2010 to the use, transboundary movement and disposal of hazardous substances and for related purposes. 2008 Renewable Energy To regulate the use of renewable energy in the Kingdom and (amended Act 2008 related matters. in 2010) Environment To establish the Ministry of Environment & Climate Change to Management Act 2010 ensure the protection and proper management of the environment 2010 and the promotion of sustainable development.

Source: Ministry of Environment and Climate Change, Government of Tonga (www.mecc.gov.to)

2. Environmental Assessment Process in Tonga

3. ADB’s Environmental Safeguard Requirements

14. Based on the Government’s and ADB’s environmental policies, the proposed Vava’u solar plant is the project is categorized as category B project based on the most sensitive component. This IEE is prepared to meet the requirements of the Kingdom of Tonga as well as ADB’s SPS 2009 requirements.

15. Beside national and ADB policies, Tonga is a Party to several international environmental agreements of which the MECC is the National Focal Point or the Implementing Agency.

4. Institutions

5. Extent of IEE Study

17. The proposed project located in the outer Islands of Vava’u (the main Island) is classified under ADB SPS 2009 as environment category ‘B’ project, requiring an IEE study. This is the IEE Report of

C. DESCRIPTION OF THE PROJECT

1. Project Background

2. Need of the Project

3. Location of Project

22. All the physical components included in the project are located in Vava’u main island, the Kingdom of Tonga. The proposed power plant site is located opposite side to the existing Taumu’aloto power station, near to downtown Neiafu on the main island of the Vava’u group. The site is separated by Laifone road, which is a fairly main road provide easy transportation of material. The existing plot of land has vegetative cover with coconut trees. Figure 1 shows the location map of the project facilities.

23. The project will need about 4000 sq.km (0.4 hectares) or 1.0 acre of land to install a 400 KWp capacity solar power plant in Vava’u. The land available opposite to exiting Taumu’aloto power station is sufficient to accommodate the proposed plant size and there is no need for additional alternate land. This land belongs to the Government (King) which will be leased by TPL.

4. Project Components and Activities

24. The main activities of Outer Island Renewable Energy Project are summarized below: • Installation and commissioning of grid-connected solar power plant in Vava’u Island with a capacity of 400 KWp. • Capacity building of TPL staff in planning and TPL customers in managing the electricity services. • Efficient Project Management services. 25. The scope of work under physical components comprise of various elements as described in following paragraphs.

26. The project will construct and operate 400KWp solar power plant. The plant will consist in a set of solar photovoltaic (PV) modules, power inverters, switchgear, associated protection, control and monitoring equipment, and associated civil works. The electricity output will be directly fed into existing distribution network of TPL for further distribution. Table 2 summarizes salient features of the Project.

Table 2: Salient Technical Features of the Project S. No. Component Features / Specifications 1. Solar Panels Approx. 2000 panels, poly-crystalline, photovoltaic Number of Panels (PV) Dimensions of each panel Rectangular, 2 m by 1 m Inclination 15 degrees Life Cycle 25 years 2. Loading Controllers 4 stations 3. DC-AC Inverters 100 kW, 4 units 4. Transformers 0.1 MVA (22kV/380V) 4 unit 5. Battery To be define 6. Wires and other accessories As per locally available

5. Local Infrastructure Required

27. The local infrastructure required for the project are the roads, wharf and the pre-existing energy grid.

29. The solar plant will be connected to the existing grid and will feed it energy. Batteries are to be installed as part of the project to ensure smooth transition from solar plant to grid.

30. Although the existing TPL generation facility is operational 24 hours a day, it is not expected that the solar farm construction team will need to operate outside of normal daytime work hours.

6. Implementation Arrangement

31. Existing institutions will support the project implementation. TPL will be the project implementing agency, while the Tonga Energy Road Map (TERM)- Project Implementation Unit (PIU) will be the project executing agency. A project steering committee will be established to review project progress, coordinate inter-ministerial activities and guide the project management unit within the utility, supported by project implementation consultants.

7. Project Benefits and Justification

34. The successful implementation of this 400kWp power plant in Vava’u Island as part of Outer Island Renewable Energy Project will result in reduction of annual diesel import for power generation to about 180,000 liters/year2 by 2018. Besides at least 3164 HH in Vava’u will be supplied with electricity generated from renewable sources, out of them at least 200 HH are using less than 11 units electricity per month.

35. In terms of solar energy, TPL consumers in Vava’u will get at least 720 MWh3 of solar electricity supply every year. Besides this capacity of TPL staff will be enhanced on procurement, anticorruption, safeguards and operation and maintenance of solar-diesel hybrid energy systems. In terms of environment, the project will bring positive impacts by reducing gaseous emissions (CO2) from running of existing DG sets; reduction in noise from DG sets operations, reduction in land and ground water contaminations caused by spill of oil from DG sets. Overall proposed project will improve socio- economic conditions of the local communities in the targeted areas and will enhance the national Grass Domestic Product (GDP).

2 With a baseline of 2011 diesel consumption for power generation which is 150 million of liters. 3 The proposed 400kWp power plant is expected to generate about 720 MWh of solar electricity annually which will offset about 180000 litres of diesel per annum.

Figure 1: Locations of Project Areas on Country (Tonga) Map4

4 Source: http://www.lib.utexas.edu/maps/islands_oceans_poles/tonga_pol_1989.pdf

Figure 1a: Location of Project Area in Island Map

Image 1: Existing Power Generation station (Left side of road) and proposed site (right right of road) for Solar Power Plant at Vava’u Island

Image 2: Existing Power Generation station (Right side of road) and proposed site (Left right of road) for Solar Power Plant at Vava’u Island

Map 1: Map of Vava’u Group showing proposed plant Image 3: View of Proposed site from the existing site TPL Generation Plant

D. DESCRIPTION OF THE ENVIRONMENT

1. Physical Resources

1.1 Physiography, Land use and Demography

39. The power plant in question is located in Vava’u Island, which is the second largest island group among the Kingdom’s four major groups covering a total land area of 121 sq. km. As per 2011 census, total population of Vava’u is 14936 and 2828 households. The proposed power plant site is located opposite side to the existing Taumu’aloto power station, near to downtown Neiafu on the main island of the Vava’u group. The land use around the proposed site is non-residential with flat topography. The site is separated by Laifone road, which is a fairly main road provide easy transportation of material. The existing plot of land has vegetative cover with coconut trees. This land belongs to the Government (King) but keeper of the land growing seasonal crops on the proposed plot without any formal lease agreement.

1.2 Meteorology and Climate

10 district, Cyclone Isaac in March, 1982 affected Ha’apai and Tongatapu and Cyclone Waka in December, 2001 affected the northern group of Niua and Cyclone Renee in 2010 severely affected Tongatapu, Vava’u & Ha’apai groups. All of these cyclone events caused severe damages to crops and food supply, infrastructures, tourist resorts, the environment, buildings and disrupt essential services and the wellbeing of the people of affected community for a prolonged period of time.

43. Vava’u has semi-tropical climate with mean monthly maximum and minimum temperatures are 28.30C and 220C respectively. Average annual rainfall is 2222 mm, and prolonged droughts occur, on average, every 7 years. In most years, a dry spell of 1–2 months can be expected in the period June– September. This is more marked in eastern areas where rainfall tends to be lower. Because of higher and more even rainfall distribution, Vava’u possesses greater agricultural potential and flexibility than Tongatapu

1.3 Geology, Soils and Mineral Resources

44. The Tongan archipelago lies roughly in a North - South direction. The soils of Tonga are derived from a mixture of volcanic ash and coral. Because island groups are isolated from each other, and are physically and economically different, the country is described in four parts. Most of the islands of Tonga have a soil layer overlying coral limestone. Soils vary from island to island. The soils are mainly derived from andesitic tephra (volcanic ash). Other soils include coral sands and lagoonal sands and mud. It is believed that the tephra was deposited by a series of volcanic eruptions from emergent volcanoes such as Tofua and Kao and from submarine volcanoes to the west. The south of the Vava'u group is generally composed of high volcanic and elevated limestone islands with reef communities or fringing reefs.

45. The main islands of the Vava’u group originated from raised coral. They have a characteristic terraced silhouette and appear to be 3-tiered. Vava’u, the largest island, has a maximum elevation of 213 m. The soils of the group are developed largely on a substantial mantle of volcanic ash, up to 9 m thick, overlaying the coral limestone. It is mainly on steeper sites and recently accumulating beach areas that coral based soils are found.

1.4 Water Resources

46. The freshwater resources of the Kingdom of Tonga consist mainly of groundwater in the form of freshwater lenses. Freshwater lenses form on top of seawater in many of the islands due to the difference in density of the two fluids. The interface, or boundary, between the two fluids is not sharp but rather is in the form of a transition zone. Within the transition zone the water salinity increases from that of freshwater to that of seawater over a number of metres. Surface water resources are only evident on some of the high volcanic and mixed geology islands in the form of springs and lakes. Crater lakes exist on the islands of Niuafo'ou and Tofua. It is reported that the former lake has been used in dry periods as a source of potable water. Surface water is collected from cave systems on the island of 'Eua and used for potable water supply.

47. Rainwater harvesting systems are a complementary freshwater resource, and an essential source of potable water on many of the islands. On the Vava’u group they are the only source of freshwater. On most parts of the main islands of the Vava’u group the depth from the surface to water table is higher being in the order of 5 to 8 m in many places and up to 15 and more metres in elevated parts of the islands.

2. Ecological Resources

2.1 Flora and Fauna

48. Tonga’s flora and fauna is limited in diversity. There is a wide variety of vegetation types throughout the islands of the Kingdom of Tonga. Indigenous vegetation includes a variety of rootcrops, fruit trees such as mangoes, tava, and a variety of citrus, and native vegetables and grasses. In the settled areas of the four Island Groups, much of the native vegetation has been cleared for coconut plantations, home gardens, villages, and commercial crops. A significant percentage of the country is now under coconut and Panicum grassland.

49. The major marine ecosystems in Tonga are: algal and seagrass beds; fringing and lagoon reefs; rocky coasts; beaches; open lagoons; marine lakes; marine caves and a submarine trench. The reefs and lagoons are the prime fishery for subsistence supplies. The natural vegetation pattern shows secondary fallow vegetation in all island groups of Vava’u. All islands have a cover of coconuts, and few other trees. The proposed site of the power plant is covered by vegetation including coconut trees and crops such as banana and kasava. There are two bird species and twelve plant species recognized as endemic to Tonga. None of these occur on Tongatapu

2.2 Forests and Protected Areas

50. Tonga’s protected area network consists of National Parks, Terrestrial and Marine Parks & Reserves Protected Area. Under the Parks and reserves Act of 1976, five marine parks have been designated on Tongatapu. The parks cover 250 hectares of coral reef, which is 10% of Tonga’s total coral system. None of the other island groups have marine parks although surveys have been conducted with this intention in mind. Table 3 present the overview of the protected area system in Tonga.

Table 3: Overview of Protected Area System in Tonga

51. Although Tonga has large protected area network, none of these areas is located in the impact area of site proposed for the solar power plant in Vava’u.

3. Socio-economic Resources

3.1 Human Resource and Pattern of Population

52. The population of Tonga is 106,036 distributed over 45 of its 172 islands. The annual population growth has occurred at an average of 0.2% since 2006, and is not expected to increase due to migration patterns. However, there is a real drift to the urban area of Nuku’alofa, with a population growth of 0.8%. In Ha’apai the annual growth rate is recorded -2.6% during this period. The official

12 poverty line in Tonga has been established at $2586 per person per year in 2009. According to the Bureau of Statistics, 22% of people in Tonga are viewed as living below the poverty line.

53. In the social survey, households were asked to comment on level of power supply and fairness of pricing for a range of utility services including electricity. Most of the people agreed with the level of electricity supply. About 15-20% of their monthly income goes to the electricity consumption. Life in Tonga revolves around strong values of family and the Church, and has a well developed historic and contemporary national identity.

54. There will be no impacts on physical cultural resources through the implementation of the subproject.

3.2 Economic Development

55. The economy of Tonga is largely based in agriculture and fisheries. Subsistence agriculture plays an important role throughout Tonga. In addition, remittances sent from relatives working abroad play a significant part in the Tongan economy as a whole, and in the economy of individual households. The global financial crisis in recent times has impacted on this economic flow, increasing the level of hardship experienced by many families in Tonga. The Agriculture sector is the main contributor, in terms of GDP, to the economy of Tonga from 2000–2009. This is closely followed by Public Administration and Services. If we aggregate the data to the sectoral level then the Services Sector is revealed to be the highest contributor to the GDP. This indicates a gradual diversification from the Agricultural sector to the Services Sector.

3.3 Historical and Cultural Values

56. The project site and the surrounding areas are for mainly agricultural and non-residential land use, and have no important historical or cultural sites. There are no records of archeological findings in the project area.

E. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES

1. Impacts and Mitigation Measures Due to Construction Activities

57. The project will involve only minor civil work such as clearing of site, earth work and foundation for panels. Mechanical and electrical works will take place at various locations within a vast project site. The site preparation will involve only minor leveling, and thus will not significantly change the drainage pattern. The transportation of construction materials and project equipment will require about 10 truck trips per day during the working period of 8 hours. Considering the nature and scope of the construction works and the ecological insensitivity of the project site, it is certain that only minor and manageable environmental disturbances will be created during construction, with minimum impact on nearby communities and the natural environment. Environmental disturbances during construction will be small and transient, such as dust, noise, incremental traffic loads on the roads, and gaseous emissions created by trucks and heavy construction equipment. Preliminary estimates of the incremental increases in ambient dust and noise levels during construction were made and were found to be marginal.

58. The project will require about 0.4 hectare of land which will be taken on lease by TPL. Therefore there is no need for any land acquisition. Clearing of land by cutting of about 100 coconut trees and trimming of some trees on surrounding areas will have some adverse impacts on the environment. Cuttings of trees will be compensated by planting additional trees. Necessary budget will be provided for planting trees. Cutting and planting of trees will be done in coordination with local offices of the Lands and Surveys Department, and Forestry Department.

59. The construction will require not more than 50 workers, who will reside outside the project site. No groundwater will be tapped at the project site as the project site has low groundwater potential. The water required for construction (concrete mixing) and consumption will be brought in from outside sources. Domestic wastewater generated by the construction workers would not be more than 10 cubic meters per day and will be treated either in a small centralized package treatment plant or by individual septic tanks, one for each toilet.

60. The nature of the construction works indicates that no toxic or hazardous materials will be used, apart from fuel oils for vehicles, which will be properly stored. Construction wastes will be sorted out by the contractors for recycling. The residual wastes will be properly handled by the relevant municipal units for waste disposal.

2. Impacts and Mitigation Measures from Operation

61. Unlike thermal power plants, the operation of the project solar power plant will have negligible environmental impact on the site during operation. There will be no waste products, no requirements for cooling, no moving parts, no noise, and no impact on flora and fauna.

62. After construction, the project impacts will diminish. After construction, traffic to and from the Vava’u Power Plant site will reduce to present levels. The solar facilities contribution to noise in the vicinity will be undetectable and definitely insignificant compared to that of the adjacent diesel generators.

63. The largest impact could be visual with the addition of the solar panel arrays on the site, including the possibility of some glare from the panels, even though they are designed to absorb the incident solar radiation. The arrays will be less than 3m high at their peak, and will be on a fixed 20 degree angle facing due north. However, the proposed site for the array is currently bounded by dense vegetation in three sides and on one side it has existing diesel generated power plant. Given the flatness of the land, the existing vegetation on three side, diesel tank and generation building on other side, the visual impact from the Vava’u Solar Power Plant will be insignificant. 64. The water to be used for washing of the solar panels will be used from outside sources. The wastewater generated by washing will be drained out by providing adequate drainage facilities.

65. Considering the risks of tropical cyclones and hurricanes, the foundations and racking system will be designed to withstand powerful cyclones and hurricanes, which will limit the probability of generation unavailability as well as reducing any potential hazard of panels being lifted up and blown onto adjacent properties.

66. The project will use transformers of forced-oil and forced-air-cool designs, which do not use polychlorinated biphenyl (PCB). Therefore, there will be no PCB disposal problem.

67. Only about 20 staff will operate the project facilities. Domestic wastes generated by this small number of people could be readily handled by conventional practices.

68. Emergency response plan including occupational health and safety plan will be adopted to handle emergency situation during the operation period. Workers will be trained to deal with the emergency situations.

69. The Project’s solar PV panels are expected to have an economic life of 25 years. The suppliers will accept the decommissioned solar PV panels for recycling based on the thin-film technologies and their update. Dismantling of the PV panels will be handled by suppliers that offer the best price for used PV panels in the future. Similarly the project will require the use of batteries which will need proper disposal and recycling of the lead and the acid that is contained in the batteries after 10 years of operation. The disposal of the batteries will be handled by suppliers.

3. Cumulative Impacts

70. The Vava’u Solar Power Plant will be located opposite side to the existing diesel generation power station of TPL which consists of three diesel generation and a diesel storage tank. While the facility will result in a large number of new solar array structures, these will be no higher than 3m and visual impact on neighbouring properties will be limited by existing vegetation along their boundaries.

71. Presently, there is no future development or expansion plan either of existing diesel power plant or any other infrastructure by government. Therefore, there will be no negative cumulative environmental effects of constructing an additional solar farm.

4. Social Impact

72. The project has no resettlement or indigenous peoples (IPs) issues. The land proposed for the power plant belongs to the King (Government) which TPL plan to take on lease. Currently keeper of the land is cultivating seasonal crops and he will be allowed to harvest the crops before the project starts construction, in line with the requirements of the ADB’s Safeguard Policy Statement (2009) for negotiated settlement. To ensure his livelihood there is possibility that the keeper will be employed by the project. Therefore, there will be no relocation issue. The project site has no people identified as IPs. The project is therefore expected to be classified as category C for both involuntary resettlement and IPs.

F. ANALYSIS OF ALTERNATIVES

73. With and without project alternative were analyzed and it is found that the Tonga would continue to pay heavy price for diesel import which will affect the overall economic development of the country and the Islands. Implementation of project will bring positive economic, social and environmental benefits. Economic benefits will be from the reduction in import of diesel for power generation. Social benefits will be from sustainable electricity supply to the consumers and environmental benefits will be from reduction in emission from DG sets by reducing diesel transport, storage, spills and emissions; reduction in noise levels from DG sets being currently operated by power station. Also as part of capacity building of local technicians in implementation and operation of solar and other renewable energy projects, future projects will be benefit from the learning from the construction and operation of the site.

74. Alternative sites were considered, but the proposed site in Vava’u was considered the best location for the solar power plant as it is adjacent to the existing TPL diesel power generation plant, easy access to distribution network, providing existing facilities (network, access roads), security and operational workforce that will reduce capital and operating costs. This site also located adjacent to 500 kWp solar power plant proposed by Madsar. The land has low environmental or residential value, given the existing power generation operations and leases in place. The Project’s technical team is reviewing the technical aspects and conceptual designs of potential PV panels and battery suppliers and the best configurations that would meet TPL’s requirements will be selected.

G. CONSULTATIONS AND INFORMATION DISCLOSURE

1. Stakeholder and Community Consultations

75. As part of environmental assessment, stakeholder and community consultations were carried out during field visits. The details of such consultations carried out during reconnaissance field visits are presented in Table 4 and Table 5. Also, a number of officials from various agencies, i.e., the Tonga Power Limited, Office of the Governor of Vava’u Island, Department of Lands and Surveys,

Ministry of Environment and Climate Change etc., were consulted during the fact finding visit. The consultations included both discussions with stakeholders and discussions with village/district level authorities.

76. Consultations will continue at next stages i.e. after finalization of detailed design and before start of the civil works construction as well as at implementation stage.

Table 4: List of Stakeholder / Communities Consulted during Field Visits in Vava’u

Sl. No. Name Designation and Organization Contact No. NUKU’ALOFA 1. John van Bribk Chief Executive, Tonga Power Limited, Nuku’alofa 7863202 2. Lano Fonua Liaison Officer, Tonga Power Limited, Nuku’alofa 3. Seini Fotu Conservation Officer -Biodiversity, Department of Environment, Ministry of Environment and Climate Change, Government of Tonga, Nuku’alofa 4. Richard ‘Atelea GIS Specialist, GIS Unit, Ministry of Lands, Surveys Kantoke and Natural Resources, Government of Tonga, Nuku’alofa 5. Makameone Senior GIS Technician, GIS Unit, Ministry of Lands, 8895909 Surveys and Natural Resources, Government of Tonga, Nuku’alofa VAVA’U ISLAND 6. Lord Fulivai Governor of Vava’u +676 70030 7. Ms. Masina Secretary, Governor’s Office, Vava’u +676 70030 Tu’itupou 8. Mr. Paula Tafitu’a Sub-treasurer, Ministry of Finance 9. Ms. Feauini Energy Planner, Ministry of Environment and Climate +676 7718151 Veikoso Laumanu Change, Vava’u 10. Mr. Hala ‘Otukolo Town Planning Officer, Lands and Surveys +676 70577 Department, Vava’u 11. Ms. ‘Emalaine Vi Manager, Taumu’aloto power station, Tonga Power +676 7720007 Limited, Vava’u 12. Mr. ‘Atieli Moala Supervisor, Taumu’aloto power station, TPL, Vava’u +676 7720111 13. Community Groups Electricity User Groups from Vava’u main island

Table 5: Summary of Stakeholder / Community Consultation Undertaken During Visits of Sample Sites Date / Venue / No. Issues discussed / remarks5 of participants 18 April 2012/ A formal kickoff meeting was held at Governor’s Office attended by Governors Office, representatives from Finance Department, Lands and Surveys Department, Vava’u / 12 Ministry of Environment and Climate Change, and Tonga Power Limited. Officials were informed about that proposed solar power plant project and objective of the mission. They welcomed that project and ensured full support for this project as it will ensure the sustainability of power supply to the Island. Governor of Vava’u island informed mission that he will immediately start the process to facilitate lease of the land from King to the TPL so that the project

5 Queries raised by people were answered to their satisfaction and it was assured that their concerns will be addressed in the process of project design.

Date / Venue / No. Issues discussed / remarks5 of participants can be implemented on time. He informed that they do not foresee any adverse impacts on the environment because of this Project. 18 April 2012/ TPL Information about existing plant, status of land proposed for the new solar Vava’u Office and power plant, presence of environmental sensitive areas around the project site, generation plant / existing capacity of TPL in managing environmental were assessed. It is 05 informed by TPL that the land proposed belongs to the Government (King). TPL can take this land on lease for the power plant. TPL informed that there are no environmental sensitive areas in and around the proposed site and land use is agricultural. The keeper of the land is growing seasonal crops on the proposed land without any formal lease. TPL informed that it has sufficient capacity to manage environmental impacts associated with operation of existing diesel as well as proposed solar power plant. However, they requested trainings on ADB’s environment policy and environmental assessment requirements. 18 April 2012/ Proposed site were inspected together with the Lands Officer. Maps and Layout Department of of the existing and proposed site were collected from Lands and Surveys Lands and Survey Department. Lands officer informed that there are no sensitive areas on and Office, Vava’u / 03 around the proposed site for the power plant. It is also confirmed from the records that land proposed for the power plant belongs to the King which can be leased to TPL for the proposed project. The existing power plant is also installed on the land leased by the King. 19 April 2012/ Local office of the MECC was consulted and they informed that there are no Ministry of protected areas in Vava’u main Island. The only protected are in the Vava’u Environment and Group is Mt. Talau Park, which is located away from the Vava’u main Island. Climate Change The officials informed that although this is a solar power plant, this is classified Office, Vava’u / 02 as major activity as per environmental act and an environmental assessment has to be approved by the MECC before implementing the project. Officials were informed that there is no previous history of natural disaster such as cyclones/ hurricanes in the main islands. 19 April 2012/ Discussions were held together with social specialist to inform communities Vava’u / women about proposed project and to understand their concerns. Communities were groups’ groups and informed about benefits both socio-economic as well as environmental benefits community leaders from the project. All the participants consulted fully support the project. 16 April 2012/ Scope of proposed project, national policy and regulatory framework as well as Ministry of requirements for permits and EIA approval were discussed with officials from Environment and MECC. Climate Change /02

77. Local communities and community leaders are well aware of and fully support the proposed project, as the installation of solar power plant will bring benefits to the Island in terms of improved and sustainable electricity supply, improve the overall economy situation by saving in cost of imported diesel and some employment opportunities. Attachment 2 shows the photographic record of the site and consultations undertaken during preparation of the IEE.

2. Information Disclosure

78. All environmental documents are subject to public disclosure, and therefore will be made available to the public. The IEE has to be disclosed on ADB’s website upon receipt. TPL will ensure that meaningful consultations, particularly with project affected persons, if any, are undertaken.

H. GRIEVANCE REDRESS MECHANISM

79. The process for solving safeguards complaints that may arise in the project is the grievance redress mechanism. Local people, once they feel that adverse and material harm is caused by the Project, can directly contact community leaders or TPL office. TPL firstly obtain the information from the complainer as much as possible to identify source of the problem and inform operation division. When the operation receives the information from TPL, they will find out if the complaint is caused from their operation. Once verified that the problem/complaint is due to operations, TPL will take the necessary corrective action plan to fully resolve the complaints about its safeguards performance. TPL will inform and update the complainant about the progress of grievance mitigation within 24 hours for the urgent issues and 7 days for the non-urgent issues.

I. ENVIRONMENTAL MANAGEMENT PLAN

1. Mitigation Measures

80. The major adverse effects of construction are increased traffic and ground disturbance. The environmental effects during operation are minor. If the increased traffic causes an issue with local residents, a scheduled time for shipments to and from the wharf can be created. The preferred foundation design of floating concrete pads is being proposed because it uses local materials and limits the ground disturbance.

81. The cutting of trees and clearing of the top soil will have a definite impact on the vegetative site in appearance and habitat. TPL will attempt to limit the amount of organic material removed from the site, limiting the construction environmental impact. Any organic material removed from the surface will remain on site and be placed in the southeast corner of the property. An environmental management plan showing the stage-wise potential impacts, proposed mitigation measures and responsible agency has been prepared in a matrix form and presented Table 6.

2. Monitoring and Reporting

82. Throughout implementation of the project, the Government and ADB will monitor the implementation progress and impacts of the project. Overall, the EMP will be implemented by the TERM-PIU through TPL. In consultation with TERM-PIU and ADB, the TPL will establish a system for preparing quarterly reports on safeguards performance monitoring, issues resolution, and corrective action plans.

83. An EMP will be part of the overall project monitoring and supervision, and will be implemented by the supervision consultant with oversight from the TPL. Progress on the preparation and implementation of an EMP will be included in the periodic project progress reports. Specific monitoring activities defined in the IEE and EMP will be carried out by EPC contractor and supervised by supervision consultant and monitored by TPL. TERM-PIU will submit semi-annual environmental monitoring reports on EMP implementation for ADB’s review. 84. In general, the overall extent of monitoring activities, including their scope and periodicity, should be commensurate with the project’s risks and impacts. TERM-PIU is required to implement safeguard measures and relevant safeguard plans, as provided in the project agreement.

85. Table 7 show the environmental monitoring plan outlining parameters and frequency of monitoring.

Table 6: Environmental Management Plan

Project activity Potential impact Proposed mitigation measure Mitigation Cost Institutional Implement /stage responsibility ation schedule A. Pre-construction Project design Negligence of environmental Ensure that EMP is included in the Project cost TERM, TPL Tendering mitigation measures bidding documents process Location Land acquisition Compensation to affected people Project Cost TERM, TPL Prior to commence ment of civil work Site clearing Cutting of trees and removal of Compensatory afforestation To be EPC Preparation vegetative cover Included in Contractor & of site prior EPC Contractor TPL to civil work cost. B. Construction Movement and Noise generated from operation - Not required due to working in remote To be EPC During land operation of and movement of trucks and area Included in Contractor & clearing and construction cranes TPL civil work - Machines noise level not more than 85 EPC Contractor equipments cost. construction dB(A) at avg. 8 hr Occupational Health Impacts on workers health due to - Provide Safety Manual To be EPC During land and Safety working with - Provide Safety Plan Included in Contractor clearing and trucks and piling cranes, Building - Supervision and Inspection EPC Contractor civil work construction, high voltage work - Protection gears cost. construction Transportation of Dust and particulate emission - Truck wheels cleaning To be EPC During land equipments and from movement of construction - Road cleaning and watering Included in Contractor clearing and construction material. vehicles transporting equipments EPC Contractor civil work and construction material. cost. construction C. Operation and Maintenance Cleaning of Solar Wastewater Generated from Provision and cleaning of adequate To be Included in EPC Cleaning Panels cleaning of solar panels drainage system. EPC Contractor schedule Contractor O&M cost. Health and Safety Health hazards in the event of Emergency Response Plan O&M Cost EPC Emergency accidents (cyclones, hurricanes) Health and Safety Plan Contractor during

Project activity Potential impact Proposed mitigation measure Mitigation Cost Institutional Implement /stage responsibility ation schedule and emergency operation and maintenanc e

Table 7: Environmental Monitoring Plan

3. Implementation Arrangement

86. The main institutions that will be involved in environmental management activities are TERM- PIU the project executing agency (EA), Tonga Power Limited as implementing agency, supervision consultant, EPC contractor, and line agencies including the Ministry of Environment and Climate Change (MECC). MECC will approve the environmental assessment report as per national EIA Act.

87. TERM-PIU has overall responsibility for all aspects of the Project. TERM-PIU through TPL will be responsible for day to day management of technical aspects of the Project. TPL staff will be trained on managing the environmental issued associated with project. TERM-PIU will ensure the environmental management and monitoring budgets are available and utilized as necessary for timely implementation of EMP.

88. The Contractor will be required to have one staff with experience in environmental management. This staff will be responsible for day to day implementation of EMP.

4. Environmental Management Budget and Resources

89. The cost of all compensation and rehabilitations works will be an integrated part of the overall project cost, which will be borne by the project. The preliminary estimated cost of the environmental management including implementation and monitoring is US$ 20,000.

J. CONCLUSION AND RECOMMONDATION

90. The environmental impacts associated with proposed 400KWpeak Vava’u solar power plant have been assessed and described in the previous sections of this document. The findings establish that the project site is not located in a sensitive ecosystem, and has no historical and cultural value. This nature of the project site coupled with the clean nature of solar power generation ensures that the Project will not cause any significant, lasting environmental and social impacts during construction, operation and decommissioning. Only minor and transient environmental disturbances would be experienced at the project site during construction and operation, and they will be minimized through implementation of the EMP. It is then recommended that the Project be considered environmentally and socially feasible, and that this IEE is adequate to justify environmental and social feasibility of the Project. There is no need for further analysis and the environmental and social assessment of the Project is considered complete.

91. It is concluded that the project has no further environmental issues to follow up, and the adequate measures listed in IEE and EMP, when implemented, will fully comply with ADB’s SPS 2009 and Government requirements.

APPENDIX 1: PHOTOGRAPHS (FIELD AND CONSULTATIONS)

A. Photographs (site and consultations)

[

Photo 1: Existing Power Generation station (Right side of Photo 2: On-site discussion with officials from Lands and road) and proposed site (Left right of road) for Solar Survey Department, Vava’u Power Plant at Vava’u Island

Photo 3: Consultation with households in Vava’u Island Photo 4: Onsite discussion with technician of Vava’u Generation Station at Vava’u

APPENDIX 2: REA CHECKLIST

SOLAR ENERGY

Rapid Environmental Assessment (REA) Checklist

Instructions:

(iii) Answer the questions assuming the “without mitigation” case. The purpose is to identify potential impacts. Use the “remarks” section to discuss any anticipated mitigation measures.

Country/Project Title: Kingdom of Tonga / Outer Island Renewable Energy Project (400KWpeak Vava’u Solar Power Plant)

PARD Sector Division:

Screening Questions Yes No Remarks A. Project Siting The proposed power plant site is located Is the Project area adjacent to or within any of the following opposite side to the existing Taumu’aloto environmentally sensitive areas? power station, near to downtown Neiafu on the main island of the Vava’u group. The project will be implemented on a land plot of 0.2 hectares which in non- residential land. There are no environmental sensitive areas reported in the project area. . Physical cultural heritage site X

. Located in or near to legally protected area X

. Located in or near to special habitats for biodiversity X (modified or natural habitats)

. Wetland X Coastline if about 2.5 km away from the proposed site. Mangroves along the coastline which is Mangrove X . about 2.5 km away from the proposed

site. . Estuarine X

Screening Questions Yes No Remarks . Offshore (marine) X Coastline if about 2.5 km away from the proposed site. B. Potential Environmental Impacts Will the Project cause…

. disproportionate impacts on the poor, women and X children, Indigenous Peoples or other vulnerable groups?

 aesthetic degradation and property value loss due to X establishment of plant and ancillary facilities?

. changes in flow regimes of the water intake from surface X water or underground wells due to abstraction for cooling purposes?

. a threat to bird or bat life from colliding with the project X facilities and/or being burned by concentrated solar rays?

. noise disturbance during operation due to the proximity X of settlements or other features?

Screening Questions Yes No Remarks . visual impacts due to reflection from solar collector X Not expected. Solar panels will be arrays resulting in glint or glare? installed with a tilt angel to avoid glare an reflection. . large population influx during project construction and X Small scale construction. operation that causes increased burden on social infrastructure and services (such as water supply and sanitation systems)?

. social conflicts between local laborers and those from X Small scale construction. Local labour outside the area? employment.

. risks and vulnerabilities related to occupational health X and safety due to physical, chemical, biological, and radiological hazards during construction, installation, operation, and decommission?

Initial Environmental Examination

July 2012

TON: Outer Island Renewable Energy Project – Phase 2

Prepared by Ministry of Finance and National Planning, Government of Tonga for the Asian Development Bank.

CURRENCY EQUIVALENTS (as of 31 March 2012)

Currency Unit = Tonga: pa'anga (TOP) TOP1.00 = US$ 0.59 US$1.00 = TOP 1.67

LIST OF ABBREVIATIONS

ADB - Asian Development Bank CFC - chlorofluorocarbons DG - Diesel Generator EA - Executing Agency EIA - Environmental Impact Assessment EMP - Environmental Management Plan EPC - Engineering, Procurement and Construction GoT - Government of Tonga GDP - Gross Domestic Product GFP - Grievance Focal Points GHG - Green House Gases GRC - Grievance Redress Committee GFP - Grievance Focal Point IA - Implementing Agency IEE - Initial Environmental Examination IUCN - International Union for Conservation of Nature MFNP - Ministry of Finance and National Planning MLECCNR - Ministry of Lands, Environment, Climate Change and Natural Resources PCBs - polychlorinated biphenyl PMC - Project Management Consultant PPTA - Project Preparatory Technical Assistance PV - photovoltaic REA - Rapid Environmental Assessment SHS - Solar Home System SPS - Safeguard Policy Statement TA - Technical Assistance TERM - Tonga Energy Road Map TPL - Tonga Power Limited

NOTES

(i) The fiscal year (FY) of the Government of Tonga ends on 31 December. FY before a calendar year denotes the year in which the fiscal year ends, e.g., FY2011 ends on 31 December 2011.

(ii) In this report, "$" refers to US dollars

TABLE OF CONTENTS

Page A. EXECUTIVE SUMMARY 1 B. POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK 3 1. The Government Environmental Laws and Regulations 4 2. Environmental Assessment Process in Tonga 4 3. ADB’s Environmental Safeguard Requirements 5 4. Institutions 5 5. Extent of IEE Study 5 C. DESCRIPTION OF THE PROJECT 7 1. Project Background 7 2. Location of Project 7 3. Project Components and Activities 9 4. Local Infrastructure Required 11 5. Implementation Arrangements 11 6. Project Benefits and Justification 11 D. DESCRIPTION OF THE ENVIRONMENT 12 1. Physical Resources 12 2. Ecological Resources 15 3. Socio-economic Conditions 16 E. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES 17 1. Impacts and Mitigation Measures Due to Pre-construction Activities 17 2. Impacts and Mitigation Measures Due to Construction Activities 18 3. Impacts and Mitigation Measures from Operation 20 4. Impacts and Mitigation due to Decommissioning 21 5. Cumulative Impacts 21 F. ANALYSIS OF ALTERNATIVES 21 G. CONSULTATIONS AND INFORMATION DISCLOSURE 22 1. Stakeholder / Community Consultations 22 2. Information Disclosure 24 H. GRIEVANCE REDRESS MECHANISM 24 1. Grievance Redress Mechanism 24 2. Grievance Focal Points, Complaints Reporting, Recording and Monitoring 24 I. ENVIRONMENTAL MANAGEMENT PLAN 25 1. Mitigation Measures 25 2. Monitoring and Reporting 26 3. Implementation Arrangement 31 4. Environmental Management Budget and Resources 31 J. CONCLUSION AND RECOMMONDATION 31 APPENDIX 1: LOCATIONS MAPS OF PROJECT SITES 32 APPENDIX 2: PHOTOGRAPHS (FIELD AND CONSULTATIONS) 38

APPENDIX 3: REA CHECKLIST 40 APPENDIX 4: SUMMARY OF IUCN PROTECTED AREAS CATEGORIES SYSTEM 43

A. EXECUTIVE SUMMARY

1. The proposed Outer Islands Renewable Energy Project (the Project) will assist the government of the Kingdom of Tonga (the government) efforts to reducing the country’s heavy reliance on imported fossil fuels for power generation. By providing a secure, sustainable and environmentally- sound clean electricity for private and commercial consumers, it will implement 1.25 MWp solar power capacity connected to the existing diesel networks of Tonga’s outer islands saving about 1700 tons of carbon dioxide (CO2) per annum.

2. The scope of the Project is divided into two phases as:

 Phase 1: Installation of 0.8 MWp solar power in Tonga’s outer islands of Ha’apai, Vava’u and ‘Eua; and

 Phase 2: Installation of 0.45 MWp solar power in Ha’apai’s outer islands of 'Uiha, Nomuka, Ha'ano and Ha'afeva; and the two Niuas namely Niuatoputapu and Niuafo'ou islands in the northern most part of the Kingdom of Tonga (Tonga).

3. This is the Initial Environmental Examination (IEE) prepared for Phase 2 of the Project. The interventions proposed under Phase 2 of the Project located in four outer Islands of Ha'apai and the two islands of the Niuas. Based on the government’s law and ADB’s environmental safeguard policy, the Phase 2 interventions are categorized as environmental category B project considering the most sensitive component. This IEE meets the requirements of the Tonga’s Environmental Impact Assessment (EIA) Act 2003 and complies with the ADB’s Safeguard Policy Statement (SPS) 2009. The scope of this IEE is limited to the sites of the proposed interventions.

4. The IEE for Phase 2 has been prepared during the project preparation work in the months of June and July 2012. The project is currently in bid preparation stage, and although there are no major changes in the project design or location of components anticipated, this IEE (including the environmental management plan [EMP]) will be updated during detailed design in line with the SPS.

5. The Project will construct and operate five solar power generation units with a total capacity of 430 kWp and will install about 100 Solar Home Systems (SHSs) with a combined capacity of 20 kWp. The solar power generation units will consist as a set of solar photovoltaic (PV) modules, power inverters, switchgear, associated protection, control and monitoring equipments, and associated civil works. The electricity output will be directly fed into the existing distribution network of island electricity committees for further distribution.

6. The project will require about 4500 sq.m (0.45 hectares)1 land to install 430 kWp capacity over five solar power plant sites. Except for Ha’afeva and Niuatoputapu, the sites proposed for the solar power plants in the Ha’apai Group are open areas of flat topography adjacent to the existing plants with land use being mostly rural (non-residential) and little vegetative cover. There are no sensitive areas on and around these proposed sites. In Ha’afeva and Niuatoputapu, the proposed sites are covered by trees and other vegetative cover. On these two land plots there are about 60 coconut trees and other crops including kasava, banana, and kape. Keeper of the land owning these trees. Coastline is between 1 and 2.5 km away from the proposed sites and there is no history of any flooding or water logging. There is no physical infrastructure or archaeological/ religiously important sites in and around the proposed sites. The land available adjacent to existing power plants in 'Uiha, Nomuka, and Ha'ano islands is sufficient to accommodate the proposed solar plant size at these islands. However for Ha’afeva and Niuatoputapu Power Plants, additional land will be required. The

1 Land requirement is estimated based on assumption that 1 kWp solar power requires about 8 sq.m. area for solar PV installation and space of access and distance between rows of panels.

land proposed for these two plants belonging to the government and it will be leased by the Project. Table 1 summarizes the island wise plant size and summary of existing features and proposed interventions.

Table 1: Summary of Existing Features and Proposed Interventions Targeted Island Feature Nomuka Ha’afeva ‘Uiha Ha’ano Niuatoputapu Niuafo’ou Island Group Ha’apai Ha’apai Ha’apai Ha’apai Niuas Niuas Total Geographical 7.0 1.8 5.36 6.58 18.0 15.0 Area (sq.km.) Number of 127 80 100~ 90 1552 211 Households 8 villages Geographical Nomuka is Haʻafeva is ʻUiha is an Haʻano is Niuatoputapu (Niuafo’ou is Location a small located island in an island in lies about the island in 42 km Lifuka the Haʻapai 240kms (144 northernmost the southwest district, in islands of miles) north of island in the southern of Pangai in the Haʻapai Tonga. To Vava’u. Tonga. part of the the Haʻapai islands of the south Almost 350 Ha’apai group of Tonga are the miles Group of islands. islands of separate islands in Foa and Niuafo’ou the Tonga. Lifuka. from Tonga’s main island of Tongatapu. Proposed Installation Installation Installation Installation Installation of Installation of Interventions of 70 kWp of 70 kWp of 70 kWp of 70 kWp 150 kWp 100 solar solar solar power solar solar power centralized home power plant power plant solar power systems with plant connected plant connected plant and a total connected to existing connected to existing associated capacity of 20 to existing grid to existing grid distribution kWp grid grid system integrated with existing solar home systems Location of Nomuka Ha’afeve ‘Uiha Pukotala Hihifo Village In all 8 proposed sites Island Village Village Village villages of for Niuafo’ou interventions Island Ownership of Owned by Owned by Owned by Owned by Government Government / proposed land Nomuka government ‘Uiha Ha’ano Private Land Electricity /private Electricity Electricity Committee parties Committee Committee Land 750 sq.m. 750 sq.m. 750 sq.m. 750 sq.m. 1500 sq.m. No land requirement requirement Land use in Open land Open land Open land Open land Open land Open land and around within owned by within within with proposed site premises nobles. premises premises of vegetation for solar power of existing of existing existing cover / trees plant site diesel diesel diesel and crops power power power plant owned by

2 Source: 2011 Census

Targeted Island Feature Nomuka Ha’afeva ‘Uiha Ha’ano Niuatoputapu Niuafo’ou plant plant keeper of the land. Terrain of Plain Plain Plain Plain Plain Plain to proposed site undulating Distance from 1 km 1 km 1 km 1 km 1-2 km 1-2 km Coastline

7. The solar power plants will not have any significant long term adverse environmental impacts; in fact the project will create long-term environmental benefits by reducing CO2 emissions in the order of 1700 tons per year. The main environmental impacts are short-term and will be created during the construction stage. The main environmental impacts will be during site preparation, which will include the cutting of about 60 coconut trees and removal of crops from two of the proposed sites and surrounding areas to prevent shading. There will also be impacts from noise and dust emissions due to increase in traffic for transportation of equipment and construction material as well as operation of construction machineries such as concrete mixer, bulldozer, dump trucks, cranes etc. However these will be short-term (approximately 3-5 days for the smaller sites and up to a month for the larger sites). Impacts associated with the installation of solar home system are mostly related to change in local topography and visual impacts. However, these impacts will not be significant as the size of the SHS is very small and will be installed individually for about 100 households. Operational impact includes management of used batteries. It is proposed that handling and disposal of used batteries will be taken care of by manufacturers. Similarly after decommissioning of the solar plants, solar panels will be dismantled and handled by manufacturers. All these impacts are manageable by implementing mitigation measures proposed in the environmental management plan.

8. Local communities and stakeholders were involved in the process of preparing the IEE through on-site discussions. As the Project will have minor environmental impacts, local communities and community leaders support the Project. They, however, sought assistance in community development such as provision of street lights etc. and support for community cultural events. Details of community issues and project actions are incorporated in social assessment report. The IEE will be made available at public locations and will be disclosed to a wider audience via the ADB website. The consultation process will be continued and expanded during the project implementation to ensure that stakeholders are fully engaged in the Project and have the opportunity to participate in its development and implementation and understand that there is a process in place for them to air any grievances or complaints.

9. The interventions proposed under Phase 2 of the Project will not cause any significant or lasting adverse environmental impacts during construction, operation and decommissioning. In terms of environmental impacts, the Project will bring about benefits by reducing gaseous emissions (CO2) through reducing dependence on existing diesel generator (DG) sets which use imported fossil fuels; reduction in noise from DG sets operations; and reduction in land and ground water contamination caused by spills from DG sets and diesel fuel storage areas. Only minor and transient environmental disturbances will be experienced at the project sites during construction and operation, and these can be minimized and managed through implementation of the EMP. Due to the limited and manageable nature of impacts this IEE is adequate to comply with the EIA Act of Tonga and ADB’s SPS and therefore further environmental analysis of the Project is not required. Requisite compliance measures (updating and implementation of EMP and monitoring plan) will be included in the project and bid/tender documents.

B. POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK

10. Environmental assessment of the proposed project has been carried out in compliance with ADB’s SPS and the government’s legislation and requirements.

1. The Government Environmental Laws and Regulations

11. Some of the important laws relevant to the Project focusing on environmental assessment are summarized in Table 2.

Table 2: Summary of Relevant Environmental Laws and Regulations of Tonga Environmental Year Objective Legislation Passed Environmental Impact To provide for the application of environmental impact assessment to Assessment (EIA) 2003 the planning of development in Tonga. Act 2003 Environmental Impact To regulate major development projects and the applications of Assessment (EIA) 2010 notification consistent with the EIA Act 2003. Regulations 2010 Waste Management To manage and oversee the function of the Waste Management 2005 Act 2005 Board. 1976 To provide for the establishment of Parks and Reserves Authority Parks and Reserves (amended and for the establishment, preservation and administration of Parks Act 1976 in 1979 & and Reserves. 1988) To regulate living modified organisms and the applications of modern Biosafety Act 2009 2009 biotechnology consistent with Tonga’s obligations and rights under the Convention on Biological Diversity and the Cartegena Protocol. To regulate the use of ozone depleting substances and to implement Ozone Layer the provisions of the Convention for the Protection of the Ozone 2010 Protection Act 2010 Layer and the Protocol on substances that deplete the ozone layer and for related purposes. To provide for the regulation and proper management of hazardous Hazardous Wastes wastes and chemicals in accordance with accepted international and Chemicals Act 2010 practices and the International Conventions applying to the use, 2010 transboundary movement and disposal of hazardous substances and for related purposes. 2008 Renewable Energy To regulate the use of renewable energy in the Kingdom and related (amended Act 2008 matters. in 2010) Environment To establish the Ministry of Environment & Climate Change to Management Act 2010 ensure the protection and proper management of the environment 2010 and the promotion of sustainable development. Source: Ministry of Environment and Climate Change3, Government of Tonga (www.mecc.gov.to)

2. Environmental Assessment Process in Tonga

12. Under the Tongan regulatory framework (the EIA Act 2003 and the EIA Regulations 2010), all development activities must be referred to the Minister of Lands, Environment, Climate Change and Natural Resources. With this notification, the proponent must complete a Determination of Category of Assessment Form, providing an overview of the proposed development and a number of details in relation to the existing environment and potential environmental impacts and mitigation measures. The Secretariat and the Minister determine whether the proposed development is a minor or major project, and advises the proponent within 30 days. If it is a major project, the proponent then submits a full

3 Effective from 1 July 2012, the government has renamed the ministry as the Ministry Lands, Environment, Climate Change and Natural Resources.

Environmental Impact Assessment for review by the Secretariat. The Secretariat makes recommendations to the Environmental Assessment Committee. The Minister receives an assessment report and issues the approval (with or without conditions), a request for further information, or a rejection.

13. Under the EIA Act, a Schedule lists the projects considered as major projects. Electricity Generation Station is listed as one of the major projects however; renewable energy generation projects such as this project has not been clearly stated in this Schedule. This IEE provides the information required for the Ministry of Lands, Environment, Climate Change and Natural Resources to undertake its assessment process as required under the regulations as Major Project.

3. ADB’s Environmental Safeguard Requirements

14. This environmental assessment is carried out in compliance with safeguard 1 of ADB’s SPS so as to ensure that potential adverse environmental impacts are identified, avoided where possible and managed or addressed.

15. As per the SPS the objective of Environmental Safeguard is to ensure the environmental soundness and sustainability of projects and to support the integration of environmental considerations into the project decision-making process. To help achieve the desired outcomes, ADB adopts eleven policy principles for guiding the assessment of projects that trigger environmental risks and impacts. ADB categorizes projects into categories A, B, C, and FI according to the significance of likely impacts.

16. Based on the Government’s EIA Act and ADB’s SPS, the interventions proposed in Phase 2 of the Project is categorized as category B project based on the most sensitive component. Project categorization is carried out using Rapid Environmental Assessment (REA) Checklist (Appendix 3). Category B projects judged to have some adverse impacts, but of lesser degree and/or significance than category A. An initial environmental examination (IEE) is required to determine whether or not significant environmental impacts warranting an EIA are likely. If an EIA is not needed, the IEE is regarded as the final environmental assessment report. Accordingly this IEE is prepared to meet the requirements of the government as well as ADB’s SPS requirements.

4. Institutions

17. The principal national agency charged with environmental protection is the Ministry of Lands, Environment, Climate Change and Natural Resources (MLECCNR). The role of MLECCNR is to protect the environment and promote sustainable development. The environmental assessment for development projects is also approved by MLECCNR. It is also the agency required to respond to any complaints from the public about environmental issues.

5. Extent of IEE Study

18. The interventions proposed under the Phase 2 of the Project located in the outer Islands of Ha'apai and Niuas. The scope of this IEE is limited to the power plant and solar home systems sites only. The purpose of this IEE is to assess potential environmental, health, safety and social impacts of the proposed interventions.

19. The Phase 2 IEE is prepared during the project preparation work in the months of June and July 2012. The project is currently in bid preparation stage, and although there are no major changes in the

project design and location of components, this IEE will be updated during detailed design in compliance with the ADB’s SPS 2009. 20. This IEE study is conducted based on primary data from field surveys (including consultations) and secondary information collected from various sources. During the site visits the specialists had discussions with various stakeholders including town members and local executive powers for their opinions on the Project. The results of the consultations with village/town members and communities as well as an evaluation of the institutional framework have been incorporated into this assessment.

C. DESCRIPTION OF THE PROJECT

1. Project Background

21. Like other Pacific islands countries, Tonga is highly vulnerable to increasing oil prices, affecting the affordability of food, goods, electricity, and transportation. Its dependency on imported fossil fuels consequently affects the economic growth of the country. The proposed Outer Islands Renewable Energy Project (the Project) will assist the government’s efforts to reducing the country’s heavy reliance on imported fossil fuels for power generation. By providing a secure, sustainable and environmentally-sound clean electricity for private and commercial consumers, it will implement 1.25 MWp solar power capacity connected to the existing diesel networks of country’s outer islands saving yearly about 1700 tons of carbon dioxide (CO2).

22. A project preparatory technical assistance (PPTA) has been provided to the government to help develop the Project in the nine outer islands groups of Ha’apai, Vava’u, ‘Eua, and Niuas. It include (i) solar resource assessment, (ii) screening and site selection for one solar plant on each island group, (iii) preparation of conceptual feasibility studies for the selected schemes including all technical, economic, financial, environmental, legal and social considerations, and (iv) capacity strengthening program of executing and implementing agencies, including customers. This report present the findings of the study carried out for Phase 2 interventions in Ha’apai’s four outer islands of 'Uiha, Nomuka, Ha'ano and Ha'afeva; and the two Niua islands (Niuatoputapu and Niuafo'ou).

23. The scope of the Project is divided in two phases:

 Phase 1: Installation of 0.8 MWp solar power in Tonga’s outer islands of Ha’apai, Vava’u and ‘Eua; and

 Phase 2: Installation of 0.45 MWp solar power in Ha’apai’s outer islands of 'Uiha, Nomuka, Ha'ano and Ha'afeva; and the two Niuas namely Niuatoputapu and Niuafo'ou islands.

2. Location of Project

24. All the physical components included in the Phase 2 are located in outer Islands of Ha’apai and Niua Groups of Tonga. Ha’apai Group is located on northern part of Tonga with Ha’apai (Capital) located at about 175 km northeast of the national capital Nuku’alofa. Niuas are northern most islands of Tonga. Ha’apai Group consists of 62 Islands covering a total land area of 110 sq. km. As at the 2011 census the Group had a total population of 6650 and 1268 households. The land use around the proposed sites is rural (non-residential) with flat topography. Ha’apai has high volcanic and low limestone islands. In Ha’apai group the solar plants will be located one each in outer islands of 'Uiha, Nomuka, Ha'ano and Ha'afeva.

25. Niuas, the two volcanic islands of Niuatoputapu and Niuafo’ou are located in the north of the Tonga. Niuatoputapu lies about 240 km (144 miles) north of Vava’u and consist of an area of 18 sq.km. whereas Niuafo’ou is the northernmost island in Tonga. Almost 350 miles separate Niuafo’ou from Tonga’s main island of Tongatapu; while Samoa (200 miles) and Fiji (300 miles) are a shorter distance away. The proposed solar power plant is located on Niuatoputapu and Solar Home System (SHS) will be installed in eight villages of Niuafo’ou island of Niuas. 26. Figure 1 shows the location map of the project facilities. Detailed maps showing locations of individual plant sites are provided in Appendix 1.

Figure 1: Locations of Project Areas on Country (Tonga) Map4

4 Source: http://www.lib.utexas.edu/maps/islands_oceans_poles/tonga_pol_1989.pdf

3. Project Components and Activities

27. As part of the Project a solar power plant of 70 kWp will be installed each in four of the Ha’apai’s outer Islands namely 'Uiha, Nomuka, Ha'ano and Ha'afeva; and a 150 kWp solar power plant will be installed in Niuatoputapu. In Niuafo’ou island a 20 kWp (100 HH) solar home systems (SHS) will be installed.

28. In four outer islands of Ha’apai, solar power plants will be installed adjacent to the existing diesel power generation plants and in Niuatoputapu, the power plant will be installed at new location in Hihifo village. In Niuafo’ou the SHSs will be installed in eight villages across the island. 29. The Project will require about 4500 sq.m (0.45 hectares)5 land to install 430 kWp capacity over five solar power plant sites. Except for Ha’afeva and Niuatoputapu, the sites proposed for the solar power plants are open areas of flat topography adjacent to the existing plants with land use being mostly rural (non-residential) and little vegetative cover. There are no sensitive areas on and around these proposed sites. In Ha’afeva and Niuatoputapu, the proposed sites are covered by trees and other vegetative cover. The land available adjacent to existing power plants in 'Uiha, Nomuka, and Ha'ano islands is sufficient to accommodate the proposed solar plant size at these islands. However for Ha’afeva and Niuatoputapu Power Plants, additional land will be required. The land proposed for these two plants belonging to the government and it will be leased by the Project. Table 3 below summarizes the island wise plant size and summary of existing features and proposed interventions.

Table 3: Summary of Existing Features and Proposed Interventions

Targeted Island Feature Nomuka Ha’afeva ‘Uiha Ha’ano Niuatoputapu Niuafo’ou Island Group Ha’apai Ha’apai Ha’apai Ha’apai Niuas Niuas Plant Capacity 70 kWp 70 kWp 70 kWp 70 kWp 150 kWp 100 solar solar solar solar solar power centralized home power power power plant solar power systems with plant plant plant plant and a total associated capacity of 20 distribution kWp system integrated with existing solar home systems Number of 127 80 100~ 90 1556 211 Households 8 villages Location of Nomuka Ha’afeve ‘Uiha Pukotala Hihifo Village In all 8 proposed sites for Island Village Village Village villages of interventions Niuafo’ou Island Land requirement 750 sq.m. 750 sq.m. 750 sq.m. 750 sq.m. 1500 sq.m. No land requirement

30. The main activities under Phase 2 of the Project are summarized below:

5 Land requirement is estimated based on assumption that 1 kWp solar power requires about 8 sq.m. area for solar PV installation and space of access and distance between rows of panels. 6 Source: 2011 Census

• Installation and commissioning of a grid-connected solar power plant in Nomuka Island of Ha’apai with a capacity of 70 kWp. • Installation and commissioning of a grid-connected solar power plant in Ha’afeva Island of Ha’apai with a capacity of 70 kWp. • Installation and commissioning of a grid-connected solar power plant in ‘Uiha Island of Ha’apai with a capacity of 70 kWp. • Installation and commissioning of a grid-connected solar power plant in Ha’ano Island of Ha’apai with a capacity of 70 kWp. • Installation and commissioning of an off-grid solar power plant with associated distribution system in Niuatoputapu Island of Niua with a capacity of 150 kWp. • Installation and commissioning of solar home systems (SHS) for about 100 households in Niuafo’ou Island of Niua with a total capacity of 20 kWp. • Capacity building of executing and implementing agencies, solar electricity committees in planning and customers in managing the electricity services. • Efficient project management services. 31. The scope of work under physical components comprise of various elements as described in following paragraphs.

32. The Project will construct and operate five solar power generation units with a total capacity of 430 kWp and will install about 100 SHSs with a combined capacity of 20 kWp. The solar power generation units will consist in a set of solar photovoltaic (PV) modules, power inverters, switchgear, associated protection, control and monitoring equipments, and associated civil works. The electricity output will be directly fed into existing distribution network of island electricity committees for further distribution. Table 4 summarizes salient features of a solar power generation unit.

Table 4: Salient Technical Features of the a Solar Power Plant

S. No. Component Features / Specifications 1. Solar Panels Number of Panels Approx. 2500 panels, poly-crystalline, photovoltaic (PV) Dimensions of each panel Rectangular, 2 m by 1 m Inclination 15 degrees Life Cycle 25 years 2. Loading Controllers 5 stations 3. DC-AC Inverters 100 kW, 5 units 4. Transformers 0.1 MVA (22kV/380V) 5 unit 5. Batteries To be define 6. Wires and other accessories As per locally available

33. Besides solar power generation units, the Project will install individual solar home systems for about 100 households with a combined capacity of 20 kWp. These individual SHS will be installed at

individual houses in eight villages of Niuafo’ou Island. The SHS will consist in a set of solar photovoltaic (PV) modules, charge controller, luminaries, battery, wire, and accessories. 4. Local Infrastructure Required

34. The local infrastructures required for the Project are the roads, wharf and the pre-existing energy grid.

35. The roads and wharf will be needed to transport necessary materials and equipments during construction. It is estimated that maximum 10 trucks will be moving daily for a maximum 3-4 days during peak construction time.

36. The solar power plant will be connected to the existing grid and will feed it energy. Batteries are to be installed as part of the project to ensure smooth transition from solar plant to grid.

5. Implementation Arrangement and Schedule

37. Existing and newly established institutions will support the project implementation. The government through its Ministry of Finance and National Planning (MFNP) will be the executing agency (EA) of the Project. The Ministry of Lands, Environment, Climate Change and Natural Resources (MLECCNR), through its Energy Implementation Unit will be the implementing agency (IA) for the Phase 2 projects located in the outer islands of Ha’apai and Niuas. An international team comprising solar energy specialist, field engineer, safeguards specialist, and financial expert will be established as the Project Management Consultant (PMC) to support the EA and IA. The PMC will take over project implementation, and after start up will design and conduct operations and maintenance (O&M), and capacity building of Tonga Power Limited (TPL) staff and members of the island electricity committees to guarantee for at least five years the project sustainability. During project implementation a project steering committee chaired by the MFNP will supervise the project implementation of the Project.

38. The Project will be implemented between November 2012 and November 2013. The tendering process will begin in September 2012 and expected to be completed in October 2012. Bid evaluation and contract will be awarded in November 2012. Installation work is expected to start in November 2012 and trial operation is scheduled on March 2014.

6. Project Benefits and Justification

39. The successful implementation of the 450 kWp solar power generation capacity in Ha’apai and Niuas Islands as part of Outer Island Renewable Energy Project will result in reduction of annual diesel import for power generation equivalent to about 180,000 liters/year by 20187. This will allow at least 100 HH in Ha’apai and Niuas will be supplied with electricity generated from renewable sources, out of them at least 15 HHs are headed by women. Besides this, schools, offices and churches will also be benefited from the Project.

40. In terms of access to solar energy, about 763 consumers in Ha’apai and Niuas will get at least 789 MWh of solar electricity supply every year8.

41. In addition, a key element of the project will be capacity building including strengthening of staff from island electricity committees in the areas of O&M of solar-diesel hybrid energy systems. The Project will also bring positive impacts by reducing gaseous emissions (CO2) from running of existing

7 With a baseline of 2011 diesel consumption for power generation which is 150 million of liters. 8 The proposed 450 kWp power plant is expected to generate about 789 MWh of solar electricity annually which will offset about 180000 litres of diesel per annum.

DG sets; reduction in noise from DG sets operations, reduction in land and ground water contaminations caused by spill of oil from DG sets. Overall, at a local level the Project will improve socio-economic conditions of the local communities in the targeted areas and at a national level will help improve the national Grass Domestic Product (GDP).

D. DESCRIPTION OF THE ENVIRONMENT

1. Physical Resources

1.1 Physiography, Land use and Demography

42. The Kingdom of Tonga (Tonga) is a group of small islands located in the central South Pacific. It lies between 15º and 23º30' South and 173º and 177º West. Tonga has a combined land and sea area of 720,000 km². It is an archipelago of 172 named islands covering an area of 747 km2 of which 36 islands (covering an area of 649 km2) are inhabited. Tonga had a total population of 103,036 (2011 census) compared to 101,991 at the census of 2006, an increase of 1045 people over the 5 years.

43. Tonga consists of four clusters of islands extended over a north-south axis: Tongatapu (260 km2); ‘Eua (87 km2) in the south; Ha’apai (109 km2) in the centre; Vava’u (121 km2) in the north; Niuafo’ou and Niuatoputapu (72 km2) in the far north. Tonga’s archipelago is situated at the subduction zone of the Indian-Australian and the Pacific tectonic plates and within the Ring of Fire where intense seismic activities occur.

44. Within Tonga there is a western line of islands of volcanic origin, steep topography and generally high elevations, and an eastern line of generally low-lying limestone and mixed geology islands. Amongst the western group are Tofua (507 m), Kao (1030 m), Late (519 m), Niuafo'ou (260 m), Niuatoputapu (106 m) and Tafahi (548 m). The eastern group where the majority of the population lives consists of Tongatapu (65 m), 'Eua (312 m) and most of the islands of the Ha'apai and Vava'u groups.

45. Ha’apai Group consists of 62 Islands covering a total land area of 109 km2. As at the 2011 census the Group had a total population of 6650 and 1268 households. The land use around the proposed sites is rural (non-residential) with flat topography. Ha’apai has high volcanic and low limestone islands.

46. Niuas, the two volcanic islands of Niuatoputapu and Niuafo’ou are located in the north of the Tonga. Niuatoputapu lies about 240 km (144 miles) north of Vava’u and consist of an area of 18 km2 whereas Niuafo’ou is the northernmost island in Tonga. Almost 350 miles separate Niuafo’ou from Tonga’s main island of Tongatapu; while Samoa (200 miles) and Fiji (300 miles) are a shorter distance away.

47. Niuafo’ou is the tip of an underwater volcano, which was created by sub-oceanic eruptions many years ago. The center of the island is dominated by Vai Lahi, a large lake measuring some 5 km (3 miles) across and up to 84 m (277 ft.) deep. On the island’s south and west, extensive, blackish grey fields of lava bear witness to Niuafo’ou volcanic history. 48. Table 5 present the physiographical features of the islands that form the Project area.

Table 5: Physiographical Features of the Proposed Sites Targeted Island Feature Nomuka Ha’afeva ‘Uiha Ha’ano Niuatoputapu Niuafo’ou Island Group Ha’apai Ha’apai Ha’apai Ha’apai Niuas Niuas Total 7.0 1.8 5.36 6.58 18.0 15.0 Geographical

Targeted Island Feature Nomuka Ha’afeva ‘Uiha Ha’ano Niuatoputapu Niuafo’ou Area (sq.km.) Geographical Nomuka is Haʻafeva is ʻUiha is an Haʻano is Niuatoputapu (Niuafo’ou is Location a small located island in an island in lies about the island in 42 km Lifuka the Haʻapai 240kms (144 northernmost the southwest district, in islands of miles) north of island in the southern of Pangai the Haʻapai Tonga. To Vava’u. Tonga. part of the in the islands of the south Almost 350 Ha’apai Haʻapai Tonga are the miles Group of group of islands of separate islands in islands. Foa and Niuafo’ou the Tonga. Lifuka. from Tonga’s main island of Tongatapu. Proposed Installation Installation Installation Installation Installation of Installation of Interventions of 70 kWp of 70 kWp of 70 kWp of 70 kWp 150 kWp 100 solar solar solar solar solar power centralized home power power power plant solar power systems with plant plant plant connected plant and a total connected connected connected to existing associated capacity of 20 to existing to existing to existing grid distribution kWp grid grid grid system integrated with existing solar home systems Location of Nomuka Ha’afeve ‘Uiha Pukotala Hihifo Village In all 8 proposed sites Island Village Village Village villages of for Niuafo’ou interventions Island Ownership of Owned by Owned by Owned by Owned by Government Government / proposed land Nomuka Noble ‘Uiha Ha’ano Private Land electricity electricity electricity committee committee committee Land 750 sq.m. 750 sq.m. 750 sq.m. 750 sq.m. 1500 sq.m. No land requirement requirement Land use in Open land Open land Open land Open land Open land Open land and around within owned by within within with proposed site premises private premises premises of vegetation for solar power of existing parties. of existing existing cover / trees plant site diesel diesel diesel and crops power power power plant plant plant Terrain of Plain Plain Plain Plain Plain Plain to proposed site undulating Distance from 1 km 1 km 1 km 1 km 1-2 km 1-2 km Coastline

1.2 Meteorology and Climate

49. The climate of Tonga is tropical. It lies within the south-east trade wind zone of the South Pacific. Wind speed over its surrounding oceans averages around 12 knots. Strong winds are not common except during tropical cyclone passages in summer (November- April) and gales from eastward migrating high-pressure systems during winter (May-October). Rainfall is moderate, with high relative humidity. Tonga’s annual rainfall is defined by two seasons, the Wet and Dry seasons.

50. Temperature variations throughout the country show an increase in daily and seasonal variations with increasing latitude. Mean annual temperatures vary from 270C at Niuafo’ou and Niuatoputapu to 240C on Tongatapu. Diurnal and seasonal variations can reach as high as 60C throughout the island group. During the Hot Wet Season (November-April), the average temperature ranges from 27-290C whereas at Dry Cool Season (May-October), the average temperature ranges from 20-240C.

51. Tonga has seen an increasing trend in the occurrences of tropical cyclones. There is also evidence that the intensity of cyclones has increased since the 1980’s in Tonga. Since the 1960’s 4 cyclones have severely affected Tonga. Cyclone Flora in March, 1961 affected Vava’u and Ha’apai districts, Cyclone Isaac in March, 1982 affected Ha’apai and Tongatapu and Cyclone Waka in December, 2001 affected the northern group of Niua and Cyclone Renee in 2010 severely affected Tongatapu, Vava’u and Ha’apai groups. All of these cyclone events caused severe damages to crops and food supply, infrastructures, tourist resorts, the environment, buildings and disrupt essential services and the wellbeing of the people of affected community for a prolonged period of time.

52. Ha’apai has semi-tropical climate with mean monthly maximum and minimum temperatures are 25.50C and 23.50C, respectively. Average annual rainfall is 1619 mm, which is not usually sufficient to support plant growth during the dry season and frequent droughts occur in the period June - August. Soil erosion occurs as a result of high intensity rainfall (including hurricanes) during the wet season from November to March. Niuas also has semi-tropical climate with mean monthly maximum and minimum temperatures are 260C and 200C, respectively. Average annual rainfall in Niuas is 1610 mm.

53. A climate risk profile for Tonga9 indicates that the main impacts of climate change are expected to be high sea levels, extreme winds, and extreme high air and water temperatures. Best estimates of long-term, systematic changes in the average climate for Tonga indicate that sea level is likely to have increased by 36 centimeters and the frequency of severe short sea level rise resulting from storm surge (2.2 meters above mean sea level) will increase from a one in 580-year event to a one in 5-year event by 2050. The project will provide solar PV plants with resilience to climate change through compact and preassembled systems resistant to marine environments.

1.3 Geology, Soils and Mineral Resources

54. The soils of Tonga are derived from a mixture of volcanic ash and coral. Because island groups are isolated from each other, and are physically and economically different, the country is described in four parts. Most of the islands of Tonga have a soil layer overlying coral limestone. While soils vary from island to island, they are mainly derived from volcanic ash (andesitic tephra) deposited by a series of volcanic eruptions from emergent volcanoes such as Tofua and Kao and from submarine volcanoes to the west. Other soils include coral and lagoon sands and mud. Among the 63 islands of Ha’apai group, 43 are coral islands, with very low topography and coraline soils. Ha’apai has high volcanic and low limestone islands or atolls. Niuas are volcanic islands. Niuafo’ou is the tip of an underwater volcano, which was created by sub-oceanic eruptions many years ago. To the south and west of the island, extensive, blackish grey fields of lava bear witness to its volcanic history.

1.4 Water Resources

55. The freshwater resources of Tonga consist of groundwater in the form of freshwater lenses. Freshwater lenses form on top of seawater in many of the islands due to the difference in density of the two fluids. The interface, or boundary, between the two fluids forms a transition zone. Within the transition zone the water salinity increases from that of freshwater to that of seawater over a number of metres. Surface water resources are only evident on some of the high volcanic and mixed geology islands in the form of springs and lakes. Crater lakes exist on the islands of Niuafo'ou and Tofua. It is

9 Climate Profile of Tonga prepared by ADB in 2008

reported that the former lake has been used in dry periods as a source of potable water. Surface water is collected from cave systems on the island of 'Eua and used for potable water supply.

56. Rainwater harvesting systems are a complementary freshwater resource, and an essential source of potable water on many of the islands. On the Ha'apai group they are the only source of freshwater. On most parts of the main islands of the Ha'apai group the depth from the surface to water table is higher being in the order of 5 to 8 m in many places and greater than 15 m in elevated parts of the islands. The center of the Niuafo’ou Island is dominated by Vai Lahi, a large lake measuring some 5 km (3 miles) across and up to 84 m (277 ft.) deep. 2. Ecological Resources

2.1 Flora and Fauna

57. Tonga’s flora and fauna is limited in diversity. There is a wide variety of vegetation types throughout the islands of Tonga. Indigenous vegetation includes a variety of rootcrops, fruit trees such as mangoes, tava, and a variety of citrus, and native vegetables and grasses. In the settled areas of the four Island Groups, much of the native vegetation has been cleared for coconut plantations, home gardens, villages, and commercial crops. A significant percentage of the country is now under coconut and Panicum grassland.

58. The major marine ecosystems in Tonga are: algal and seagrass beds; fringing and lagoon reefs; rocky coasts; beaches; open lagoons; marine lakes; marine caves and a submarine trench. The reefs and lagoons are the prime fishery for subsistence supplies. The natural vegetation pattern shows secondary fallow vegetation in all island groups of Ha’apai. All islands have a cover of coconuts, and few other trees.

59. Knowledge of Tonga’s terrestrial fauna is limited with most past researches and investigations concentrated on agricultural-related fauna. Tonga’s Stocktaking report (2004) reviewed the terrestrial fauna in terms of vertebrates and invertebrates. Invertebrates are mostly agricultural pests widely found throughout the Pacific and tropical environments and include beetles, moths, flies and worms which prominence relate more to their destructive impact on agriculture as oppose to being biologically rare and unique.

60. Of vertebrates, other than the domesticated ones of low conservation significance, birds has the highest diversity. Watling reported 74 species (Watling, 2001) 51 of which are resident breeding species, 22 native land birds, 23 sea bird species, and 6 introduced. The remaining 23 species are migrant or vagrants of which are 6 shore birds, 13 seabirds and 3 land and wetland species (ibid.). Endemism is low with only one (Hengahenga or Tonga whistler; Pachycephala jacquinoti) species, while the Niuafo’ou megapode (Megapodius pritchardii) is known to also exist in Vanuatu. The megapode is listed by the IUCN as an endangered species.

61. Other fauna species are hepterofauna of which some 20 species are reported, two species of fruit bats (Pteropus tonganus and P samoensus), rodents and cats.

2.2 Forests and Protected Areas

62. Tonga’s protected area network consists of national parks, terrestrial and marine parks and reserve protected areas. Under the Parks and Reserves Act of 1976, five marine parks have been designated on Tongatapu. The parks cover 250 hectares of coral reef, which is 10% of Tonga’s total coral system. None of the other island groups have marine parks although surveys have been conducted with this intention in mind. Table 6 present the overview of the protected area system in Tonga and corresponding IUCN category. IUCN categorization system is provided in Appendix 4.

Table 6: Overview of Protected Area System in Tonga

PA category/type No. Surface area, Corresponding Management (ha) IUCN category authority Marine Protected Areas, protected 1,003,729 IV-VI MECC seascape/ marine reserves 8 Managed resource terrestrial 6 2,100 Forestry & II, V,VI protected areas MECC Managed resource protected areas/special management areas 6 9256.5 VI Fisheries (SMA) – community based. Strict Nature Reserve (SMAs 6 – 1,104.5 IA Fisheries community based) Source: Data provided by the Ministry of Environment and Climate Change. 3. Socio-economic Conditions

3.1 Demography

63. The population of Tonga is 106,036 distributed over 36 of its 172 islands. Since 2006 the average annual population growth has been 0.2%, and is not expected to increase. Due to steady migration (urban drift) to the capital of Nuku’alofa, with a population growth of 0.8%. In Ha’apai the annual growth rate is recorded -2.6% during this period. The official poverty line in Tonga has been established at $2586 per person per year in 2009. According to the Bureau of Statistics, 22% of people in Tonga are viewed as living below the poverty line. Table 7 present the demographic details of each targeted island.

Table 7: Island-wise Detail of Demographic Features

Targeted Island Feature Nomuka Ha’afeva ‘Uiha Ha’ano Niuatoputapu Niuafo’ou Island Group Ha’apai Ha’apai Ha’apai Ha’apai Niuas Niuas Total Geographical 7.0 1.8 5.36 6.58 18.0 15.0 Area (sq.km.) Total 477 270 415 419 758 523 Population Number of 127 80 100~ 90 15510 211 Households 8 villages Households 17 (13%) 7 (9%) No record 20 No record 22 (11%) without power connnection

64. In the consultation process, households were asked to comment on level of power supply and fairness of pricing for a range of utility services including electricity. Most of the people agreed that the level of electricity supply they are getting from existing system is satisfactory as there are not many blackout reported by the public.

3.2 Economic Development

10 Source: 2011 Census

65. The economy of Tonga is largely based in agriculture and fisheries. Subsistence agriculture plays an important role for many families. In addition, remittances sent from relatives working abroad play a significant part in the Tongan economy as a whole, and in the economy of individual households. The global financial crisis in recent times has impacted on this economic flow, increasing the level of hardship experienced by many families in Tonga. The agriculture sector is the main contributor, in terms of GDP, to the economy of Tonga from 2000–2009. This is closely followed by public administration and services. If we aggregate the data to the sectoral level then the services sector is revealed to be the highest contributor to the GDP. This indicates a gradual diversification from the agricultural sector to the services sector. During the consultation it is reported that about 15- 20% of their monthly income goes to the electricity consumption. Life in Tonga revolves around strong values of family and the Church, and has a well developed historic and contemporary national identity.

3.3 Historical and Cultural Values

66. The proposed project sites and the surrounding areas are for mainly agricultural and non- residential land use, and have no important historical or cultural sites. There are no records of archeological findings in the project areas. E. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES

1. Impacts and Mitigation Measures Due to Pre-construction Activities

1.1 Physical Environment

67. The proposed sites of the power plants are open land except in Ha’afeva and Niuatoputapu where the proposed sites are covered by vegetation.The project facilities do not encroach any of the environmentally sensitive areas. Also there are no sites of any archaeological importance in and around the project facilities. Therefore impacts associated with project siting on physical environment are negligible.

68. Minor impacts on topography and visual impacts are expected due to installation of the solar power plants. However these impacts are permanent and these impacts were minimized by careful site selection to avoid inhabited areas.

69. The equipments to be procured and installed by the Project will comply with international standards for noise as well as escape of polluting materials. The Project will use compact and preassembled systems to minimize the impacts. Therefore no adverse impacts due to the Project design are anticipated. To ensure that all the environmental mitigation measures are implemented, the EMP will be included in the bidding documents.

70. Climate risk profile for Tonga indicates that the main impacts of climate change are expected to be high sea levels, extreme winds, and extreme high air and water temperatures. Best estimates of long-term, systematic changes in the average climate for Tonga indicate that sea level is likely to have increased by 36 centimeters and the frequency of severe short sea level rise resulting from storm surge (2.2 meters above mean sea level) will increase from a one in 580-year event to a one in 5-year event by 2050. The project will provide solar PV plants with resilience to climate change through compact and preassembled systems resistant to marine environments.

1.2 Biological Environment

71. The project will need cutting of about 60 coconut trees from the proposed sites. The loss of trees will be compensated by planting additional trees as per government requirements. Although Tonga has a large protected area network, none of these areas is located in the impact area of sites proposed for the interventions (solar power plants and SHSs) under Phase 2 of the Project in outer islands of Ha’apai and Niua Groups. Therefore there will not be any impacts of the fauna.

1.3 Social Environment

72. The project will require about 0.45 Ha of land. The proposed land is owned by the government and Nobles and it will be leased by the Project as per national regulations. To ensure the livelihood of affected people due to loss of crops, there is possibility that the keeper of the land will be employed by the project. Therefore, there will be no relocation issue.

2. Impacts and Mitigation Measures Due to Construction Activities

2.1 Physical Environment

73. Impacts on topography due to installation of solar plant and SHS at individual household will be insignificant. The PV panel will be visible on ground for solar plant and individual houses. This small change in topography will be visible in the habitation. This change will be permanent. In installation phase there will be no impact on soil quality of the area.

74. Visual impacts are anticipated due to storage and haulage construction material and movement of equipments and machineries. This will be minimized by the selection of suitable storage areas for materials or plant with minimum visibility from residences and roads with screening where necessary.

75. Impacts on water resources are not anticipated as there are no water bodies around the Project sites. Wastewater generated during construction will be managed by constructing temporary collection tanks.

76. The Project will involve only minor civil works such as clearing of site, earth work and foundation for panels. Mechanical and electrical works will take place at various locations within a large project sites. The site preparation will involve only minor leveling, and thus will not significantly change the drainage pattern. The transportation of construction materials and project equipment will require about 10 truck trips per day during the working period of 8 hours. It will mean there is more traffic, particularly heavy traffic, on the road than usual. The distance from the wharf to the proposed site is generally short so few roads will be affected by this. Traffic level will return to normal after the construction of the solar plant is completed. Considering the nature and scope of the construction works and the ecological insensitivity of the Project site, it is certain that only minor and manageable environmental disturbances will be created during construction, with minimum impact on nearby communities and the natural environment. Environmental disturbances during construction will be small and transient, such as dust, noise, incremental traffic loads on the roads, and gaseous emissions created by trucks and heavy construction equipment.

77. The impacts associated with civil works activities will be controlled by adapting suitable mitigation measures such as:

 Selection of construction techniques and machinery seeking to minimize ground disturbance and noise vibrations.

 Proper maintenance and operation of construction equipment.  Existing roads and tracks used for construction and maintenance access to the line / site wherever possible to minimize increase in airborne dust particles.

 Soil excavated from foundation footings disposed of at designated places.  Fuel and other hazardous materials securely stored above high flood level.  Construction activities only undertaken during the day and local communities informed of the construction schedule.

 Protect /preserve topsoil and reinstate after construction completed.

 Safe handling and disposal of phased out equipments.  Contractor to arrange for health and safety training sessions.  Implementation of effective environmental monitoring and reporting system using checklist of all contractual environmental requirements

 Appropriate contact clauses to ensure satisfactory implementation of contractual environmental mitigation measures.

2.2 Biological Environment

78. Clearing of land by cutting of about 60 trees and trimming of some trees on surrounding areas will have some adverse impacts on the environment. Cuttings of trees will be compensated by planting additional trees. Necessary budget will be provided for planting trees. Cutting and planting of trees will be done in coordination with local offices of the Lands and Surveys Department, and Forestry Department. No impacts on fauna are anticipated due to contraction activities. Following mitigation measures will be implemented by the contractor -

 Marking of trees to be removed prior to clearance, and strict control on clearing activities to ensure minimal clearance.

 Trees that can survive pruning to comply should be pruned instead of cutting.  Contractor to ensure that there is no illegal felling of trees by the construction workers.  Planting of trees in coordination with local forest authorities. 3.3 Social Environment

79. The construction will require not more than 50 workers, who will reside outside the Project sites. No groundwater will be tapped at the Project site as these sites have low groundwater potential. The water required for construction (concrete mixing) and consumption will be brought in from outside sources. Domestic wastewater generated by the construction workers would not be more than 10 cubic meters per day per site and will be treated either in a small centralized package treatment plant or by individual septic tanks, one for each toilet.

80. The nature of the construction works indicates that no toxic or hazardous materials will be used, apart from fuel oils for vehicles, which will be properly stored. Construction wastes will be sorted out by the contractors for recycling. The residual wastes will be properly handled by the relevant municipal units for waste disposal.

81. Following additional mitigation measures will be implemented to ensure health and safety of local communities and construction workers.

 Construction activities only undertaken during the day and local communities informed of the construction schedule.

 Construction workforce facilities to include proper sanitation, water supply and waste disposal facilities.

 Protect /preserve topsoil and reinstate after construction completed.  Contract provisions specifying minimum requirements for workers camps.  Provide protection gears.  Contractor to prepare and implement a health and safety plan including safety manual.  Contractor to arrange for health and safety training sessions. 82. Since there are no cultural resources near the project sites, there will be no impacts on physical cultural resources through the implementation of the Phase 2 components.

3. Impacts and Mitigation Measures from Operation

2.1 Unlike thermal power plants, the operation of the solar power plant will have negligible environmental impact on the site during operation. There will be no waste products, no requirements for cooling, no moving parts, no noise, and no impact on flora and fauna.

3.1 Physical Environment

83. After construction, the project impacts will diminish. After construction, traffic to and from the existing diesel generation unit sites will reduce to present levels. The solar facilities contribution to noise in the vicinity will be undetectable and definitely insignificant compared to that of the adjacent diesel generators.

84. The possible impact could be visual with the addition of the solar panel arrays and installation of SHS on the site, including the possibility of some glare from the panels, even though they are designed to absorb the incident solar radiation. The arrays will be less than 3 m high at their peak, and will be on a fixed 20 degree angle facing due north. The proposed sites for the arrays are kept away from the residential areas, therefore impacts from glare and the visual impact from the proposed power plants and SHSs will be insignificant.

85. The water to be used for washing of the solar panels will be taken from outside sources. Provision of adequate drainage facilities will control impacts due to wastewater generated by washing of solar panels.

86. Ha’apai and Niuas are vulnerable to the tropical cyclones and hurricanes. To mitigate these impacts, the foundations and racking system will be designed to withstand powerful cyclones and hurricanes, which will limit the probability of generation unavailability as well as reducing any potential hazard of panels being lifted up and blown onto adjacent properties.

87. During operation phase battery of SHS will have to be replaced after 3- 5 years. This battery contains heavy metal lead and sulphuric acid. If the batteries are discarded in the surroundings then there will be soil contamination with lead and sulphuric acid in the area. To mitigate these impacts the replaced batteries will be stored in leak proof battery collection system and will be sent to manufacturers for recycling and further management.

88. The Project will use transformers of forced-oil and forced-air-cool designs, which do not use polychlorinated biphenyl (PCB). Therefore, there will be no PCB disposal problem.

3.2 Biological Environment

89. No significant impacts anticipated on biological environment due to operation of solar power plants. Minor impacts on fauna species such as birds, bats etc. due to reflection and glare form solar panels are possible but the presence of birds in the targeted areas is very rare therefore no impacts on fauna due to glare. Wastewater generated from cleaning of solar panels will be collected for sediment removal before discharging to the water bodies, therefore impact on aquatic life is not expected.

3.3 Social Environment

90. Only about 10-15 staff will operate the Project facilities. Domestic wastes generated by this small number of people could be readily handled by conventional practices.

91. Contractors’ emergency response plan including occupational health and safety plan approved by supervision consultant will be adopted to handle emergency situation during the operation period. Workers will be trained to deal with the emergency situations.

4. Impacts and Mitigation due to Decommissioning

92. The Project’s solar PV panels are expected to have an economic life of 25 years. The suppliers will accept the decommissioned solar PV panels for recycling based on the thin-film technologies and their update. Dismantling of the PV panels will be handled by suppliers that offer the best price for used PV panels in the future. Similarly the project will require the use of batteries which will need proper disposal and recycling of the lead and the acid that is contained in the batteries after 10 years of operation. To control these possible impacts, it is proposed the disposal of the batteries will be handled by suppliers.

5. Cumulative Impacts

93. The solar power plants proposed under the Project will be located adjacent to the existing diesel generation power stations which consist of diesel generators and diesel storage tanks. While the facilities will result in a number of new solar array structures, these will be no higher than 3 m and visual impact on neighbouring properties will be limited by providing adequate fencing along the plant boundaries.

94. Presently, there is no future development or expansion plan either of existing diesel power plants or any other infrastructure by government. Therefore, there will be no cumulative environmental effects of constructing an additional solar plant in each of six targeted islands.

F. ANALYSIS OF ALTERNATIVES

95. With and without project alternative were analyzed and it is found that the Tonga would continue to pay heavy price for diesel import which will affect the overall economic development of country and the Islands. Implementation of Project will bring positive economic, social and environmental benefits. Economic benefits will be from the reduction in import of diesel for power generation. Social benefits will be from sustainable electricity supply to the consumers and environmental benefits will be from reduction in emission from DG sets by reducing diesel transport, storage, spills and emissions; reduction in noise levels from DG sets being currently operated by power station. Also as part of capacity building of local technicians in implementation and operation of solar and other renewable energy projects, future projects will be benefit from the learning from the construction and operation of the site.

96. Alternative sites were considered, but the proposed sites in Ha’apai and Niuatopotapu were considered the best locations for the solar power plants as these are adjacent to the existing generation diesel power generation plants, easy access to distribution network, providing existing facilities (network, access roads), security and operational workforce that will reduce capital and operating costs. The land has low environmental or residential value, given the existing power generation operations and leases in place. The Project’s technical team is reviewing the technical aspects and conceptual designs of potential PV panels and battery suppliers and the best configurations that would meet desired locational requirements will be selected.

G. CONSULTATIONS AND INFORMATION DISCLOSURE

1. Stakeholder / Community Consultations

97. As part of environmental assessment, stakeholders and community consultations were carried out during field visits. The details of such consultation carried out during reconnaissance field visits are presented in Table 8 and Table 9. Also, in total 27 officials from various agencies, i.e., the Tonga Power Limited, Office of the Governor of targeted islands, town officers from islands, Department of Lands and Surveys, etc., were consulted during the fact finding visits. The consultations included both discussions with stakeholders and discussions with village/district level authorities.

98. Consultation will continue at next stages i.e. after finalization of detailed design and before start of the civil works construction as well as at implementation stage.

Table 8: List of Stakeholders / Communities Consulted during Field Visits to targeted Islands in Ha’apai and Niua Groups

Sl. No. Name Designation and Organization Remarks NUKU’ALOFA 1. John van Bribk Chief Executive, Tonga Power Limited, Nuku’alofa 2. Lano Fonua Liaison Officer, Tonga Power Limited, Nuku’alofa 3. Seini Fotu Conservation Officer -Biodiversity, Department of Environment, Ministry of Environment and Climate Change, Government of Tonga, Nuku’alofa 4. Richard ‘Atelea Kantoke GIS Specialist, GIS Unit, Ministry of Lands, Surveys and Natural Resources, Government of Tonga, Nuku’alofa 5. Makameone Senior GIS Technician, GIS Unit, Ministry of Lands, Surveys and Natural Resources, Government of Tonga, Nuku’alofa 6. Warrick Dea Land Registration Officer, Ministry of Lands, Surveys, and Natural Resource, Government of Tonga, Nuku’alofa HA’APAI GROUP 7. Viliami Latu Representative, Governor’s Office, Ha’apai 8. Samuela Fakatou Sub-treasurer, Finance Department, Ha’apai 9. Simote Mahe Lands Officer, Department of Lands and Survey, Ha’apai 10. Taufa Vaka Manager, Tonga Power Limited, Ha’apai 11. Taniela Latu’ila Technician, Ha’apai Power Station, Tonga Power Limited, Ha’apai 12. District Officer, Fao Island 13. Women Groups (3) Ha’apai Island and Fao Island 14 'Otolose Pau'u In-charge of Nomuka Electricity Committee, Nomuka Island 15. Fonia Kanongata'a In-charge of Ha’afeva Electricity Committee, Ha’afeva Island

16. 'Alekisanita Leao In-charge of ‘Uiha Electricity Committee, ‘Uiha Island 17. Smith Tutu'ila Retired Technician, ‘Uiha Electricity Committee, ‘Uiha Island 18. Tai Siope In-charge of Ha’ano Electricity Committee, Haano Island NIUAS GROUP 19. Government Representative, Niuatoputapu 5 persons Island 20. Government Representative, Niuafo’ou Island 4 persons

Table 9: Summary of Stakeholder/ Community Consultation Undertaken During Visits of Sample Sites Date / Venue / No. Issues discussed / remarks11 of participants 29 June 2012/ Information about existing power generation system, status of land proposed Government Office for power plant, presence of environmental sensitive areas on and around the cum School proposed site, existing capacity of electricity committee in managing Complex, environmental issues were assessed. It is informed by Government Niuatoputopu Island / representative that the land proposed for solar power plant belongs to the 30 Government (King). Project proponent can take this land on lease for the power plant. Local community leaders informed that there are no environmental sensitive areas in and around the proposed site and land use is agricultural. Local people (keeper of the land) growing seasonal crops on the proposed land without any formal lease. Chairmen of the existing electricity committee informed that there is a need of capacity building in managing the solar home systems. 30 June 2012/ Hihifo Discussions were held together with technical and social team to inform Church Complex, communities about the proposed project and understand their concerns, if Niuafo’ou Island / any. Communities were informed about the benefits both socio-economic as Government well as environmental benefits of the project. All the participants consulted representative and fully support the project. Women groups recommended need for the street women groups’ lights and other community facilities. Present of environmental sensitive groups (45 areas were discussed with the Agriculture Officer of the Niuafo’ou Island and participants from he informed that there are no such area on the Island. various agenices) 6 July 2012/ Ministry Details of the land use in and around the sites proposed for the Solar Power of Lands. Surveys, Plants in nine outer islands were obtained including land maps and lease and Natural arrangement of the existing diesel power plants were discussed. Resources /02 Requirements for land for new solar power plants and procedure to acquire land were discussed. Land Registration Officer informed that all land should be leased by the project proponent as per exiting law. Detailed procedure for the land acquisition / leasing was collected from the officer. 16 April 2012/ then Scope of proposed project, national policy and regulatory framework as well Ministry of as requirements for permits and EIA approval were discussed with officials Environment and from MECC. Climate Change /02

11 Queries raised by people were answered to their satisfaction and it was assured that their concerns will be addressed in the process of project design.

99. Local communities and community leaders are well aware of and fully support the proposed Project, as the installation of solar power plants and SHSs will bring benefits to the Islands in terms of improved and sustainable electricity supply, improve the overall economy situation by saving in cost of imported diesel and some employment opportunities. Appendix 2 shows the photographic record of the consultations undertaken during preparation of the IEE.

2. Information Disclosure

100. All environmental documents are subject to public disclosure, and therefore will be made available to the public. The IEE will be disclosed on ADB’s website upon receipt as per ADB’s New Public Communications Policy (PCP) 2011. EA through IA will ensure that meaningful public consultations, particularly with project affected persons, if any, are undertaken. Consultation plan will be prepared and agreed by EA during the detailed design stage.

H. GRIEVANCE REDRESS MECHANISM

1. Grievance Redress Mechanism

101. In order to receive and facilitate the resolution of affected peoples’ concerns, complaints, and grievances about the project’s environmental performance an Environmental Grievance Redress Mechanism (GRM) is proposed for the project. When and where the need arises, this mechanism will be used for addressing any complaints that may arise during the implementation and operation of the Project. The grievance mechanism is scaled to the risks and adverse impacts of the Project. It addresses affected people's concerns and complaints promptly, using an understandable and transparent process that is gender responsive, culturally appropriate, and readily accessible to all segments of the affected people at no costs and without retribution. The mechanism is not impeding access to the Tonga’s judicial or administrative remedies. EA through IA will appropriately inform the affected people about the mechanism before start of commencement of any civil works.

2. Grievance Focal Points, Complaints Reporting, Recording and Monitoring

102. The process for solving environmental complaints that may arise in the Project is the Grievance Redress Mechanism, which will be established at project level, the process is described below:

103. Environment complaints will be received through the Grievance Focal Point (GFP), these will be designated personnel from within the community who will be responsible for receiving the environmental complaints. The Contractor will record the complaint in the onsite Environmental Complaints Register (ECR) in the presence of the GFP.

104. The GFP will discuss the complaint with the Contractor and have it resolved.

105. If the Contractor does not resolve the complaint within one week, then the GFP will bring the complaint to the attention of the PMC Safeguard Specialist. The PMC Safeguard Specialist will then be responsible for coordinating with the Contractor in solving the issue.

106. If the Complaint is not resolved within 2 weeks the GFP will present the complaint to the Grievance Redress Committee (GRC). The GRC will be comprised of designated officials from

the following organizations: Contractor’s Environment Specialist, PMC Safeguard Specialist, GFP, Island Level representative, and a representative from IA.

107. The GRC will have to resolve the complaint within a period of 2 weeks and the resolved complaint will have to be communicated back to the community. The Contractor will then record the complaint as resolved and closed in the Environmental Complaints Register.

108. In parallel to the ECR placed with the Contractor, each GFP will maintain a record of the complaints received and will follow up on their rapid resolution.

109. EA through IA will also keep track of the status of all complaints through the Monthly Environmental Monitoring Report submitted by the Contractor to the PMC, and will ensure that they are resolved in a timely manner. Figure 2 shows that Grievance Redress Mechanism.

Affected Person through GFP

Contractor Redressed

Not Redressed

Resolve with PMC Redressed

Not Redressed

Appeal to Grievance Redress Committee Redressed

Not Redressed

Grievance Redressed Committee Committee Redressed Grievance Resolve through Local Legal Process

Figure 2: Grievance Redress Mechanism

I. ENVIRONMENTAL MANAGEMENT PLAN

1. Mitigation Measures

110. The major adverse effects of construction stage are change in topography, visual impacts, increased traffic, ground disturbance and health and safety of workers. The environmental effects during operation are minor. If the increased traffic causes an issue with local residents, a scheduled time for shipments to and from the wharf can be created. The preferred foundation design of floating concrete pads is being proposed because it uses local materials and limits the ground disturbance. Provisions of adequate health and safety measures will control adverse health impacts and will ensure safety of the workers and communities. To minimize climate change impacts, the project will provide

solar PV plants with resilience to climate change through compact and preassembled systems resistant to marine environments.

111. The cutting of trees and clearing of the top soil will have a definite impact on the vegetative site in appearance and habitat. The Project will attempt to limit the amount of organic material removed from the site, limiting the construction environmental impact. Any organic material removed from the surface will remain on site and be placed in the southeast corner of the property. Used batteries will be sent to authorize dealers for disposal. An environmental management plan showing the stage-wise potential impacts and proposed mitigation measures and responsible agency has been prepared in a matrix form and presented Table 10. The EMP will be updated following detailed design.

2. Monitoring and Reporting

112. Throughout implementation of the Project, the government and ADB will monitor the implementation progress and impacts of the Project. Overall, the EMP will be implemented by the executing agency through project implementation. In consultation with executing agency and ADB, the implementing agency will establish a system for preparing quarterly reports on safeguards performance monitoring, issues resolution, and corrective action plans.

113. An EMP will be part of the overall project monitoring and supervision, and will be implemented by the project management consultant (PMC) with oversight from the implementing agency. Progress on the preparation and implementation of an EMP will be included in the periodic project progress reports. Specific monitoring activities defined in the IEE and EMP will be carried out by engineering, procurement and construction (EPC) contractor and supervised by PMC and monitored by implementing agency. The executing agency will submit semi-annual environmental monitoring reports on EMP implementation for ADB’s review. 114. In general, the overall extent of monitoring activities, including their scope and periodicity, should be commensurate with the project’s risks and impacts. The implementing agency with the support from PMC is required to implement safeguard measures and relevant safeguard plans, as provided in the Project agreement.

115. Table 11 provides the environmental monitoring plan outlining parameters and frequency of monitoring.

Table 10: Environmental Management Plan Project activity Potential impact Proposed mitigation measure Mitigation Cost Institutional Implementation /stage responsibility schedule A. Pre-construction Location Encroachment into precious Careful site selection to avoid Project Cost EA, IA through Detailed design ecological and protected encroachment of ecological sensitive PMC areas areas including protected areas and areas of historical and cultural importance. Topography and visual Careful selection of site away from Project Cost EA, IA through Detailed design impacts inhabited areas. PMC Project design Negligence of Ensure that EMP is included in the Project cost EA, IA through Tendering process environmental mitigation bidding documents PMC measures Climate Change Risk of climate change Provided solar PV plants with resilience Project cost EA, IA through Detailed design to climate change through compact and PMC preassembled systems resistant to marine environments. Equipment design Release of toxic chemicals PCBs should not be used in Project Cost EA, IA through Tendering process and selection and gases in receptors (air, transformers and other project facilities PMC water, land) or equipment. Involuntary Social inequities Compensation paid for temporary/ Project Cost EA, IA through Prior to resettlement or land permanent loss of productive land as PMC commencement of acquisition per entitlement framework and its civil work process, if necessary. Site clearing Cutting of trees about 60 Compensatory afforestation as per To be EPC Contractor Preparation of site coconut trees and removal government policies. included in & PMC prior to civil work of vegetative cover EPC Contractor cost. B. Construction Installation of Solar Topography and visual Selection of suitable storage areas for To be EPC Contractor During civil work Panels and Storage impacts materials or plant with minimum visibility included in & PMC construction of construction from residences and roads with EPC material and screening where necessary. Contractor movement of cost. vehicles Construction debris Pollution of water bodies Provision of adequate drainage system To be EPC Contractor During civil work and wastewater due to disposal of waste including controlled collection and included in & PMC construction

Project activity Potential impact Proposed mitigation measure Mitigation Cost Institutional Implementation /stage responsibility schedule material into water bodies. preliminary treatment of wastewater. EPC Contractor cost. Movement and Noise generated from - Construction techniques and To be EPC Contractor During land operation of operation and movement of machinery selection seeking to included in (preparation and clearing and civil construction trucks and cranes minimize ground disturbance. EPC implementation) work construction equipments - Machines noise level not more than Contractor PMC (approval) 85 cost. dB(A) at avg. 8 hr Visual impacts from storage Selection of suitable storage areas for To be EPC Contractor During land and haulage of construction materials or plant with minimum visibility included in (preparation and clearing and civil material from residences and roads with EPC implementation) work construction screening where necessary. Contractor PMC (approval) cost. Transportation of Dust and particulate - Truck wheels cleaning To be EPC Contractor During land equipments and emission from movement of - Road cleaning and watering included in clearing and civil construction construction vehicles EPC work construction material. transporting equipments Contractor and construction material. cost. Cutting of trees and Loss of trees and vegetative - Removal of only those trees which are To be EPC Contractor During land clearing / trimming covers necessary. included in clearing and civil of trees and - Transplanting of trees if this is EPC work construction vegetative cover possible. Contractor - Prohibiting illegal feeling of trees by cost. construction workers for domestic uses. Occupational Health Impacts on workers health - Provide Safety Manual To be EPC Contractor During land and Safety due to working with trucks - Provide Safety Plan included in (preparation and clearing and civil and piling cranes, Building - Supervision and Inspection EPC implementation) work construction construction, high voltage - Protection gears Contractor PMC (approval) work cost. C. Operation and Maintenance Reflection and glare Visual impacts and glare Design of solar arrays to absorb To be EPC Contractor During operation from Solar arrays incident solar radiation. included in and maintenance Proper orientation of arrays. EPC Contractor O&M cost. Cleaning of Solar Wastewater Generated from Provision and cleaning of adequate To be EPC Contractor During operation Panels cleaning of solar panels drainage system. included in and maintenance

Project activity Potential impact Proposed mitigation measure Mitigation Cost Institutional Implementation /stage responsibility schedule EPC Contractor O&M cost. Natural Disasters Damage from hurricanes Design of foundations and racking To be EPC Contractor During operation and cyclones. system to withstand powerful cyclones included in and maintenance and hurricanes, which will reduce any EPC potential hazard of panels being lifted Contractor up and blown onto adjacent properties. O&M cost. Health and Safety Health hazards in the event Emergency Response Plan O&M Cost EPC Contractor Emergency during of accidents (cyclones, Health and Safety Plan operation and hurricanes) and emergency maintenance Disposal and Impacts from used batteries Adequate storage and handling system. O&M Cost EPC Contractor During operation management of and panels and maintenance batteries D. Decommissioning Dismantling of PV Impacts from disposal of PV Contract agreements with PV panel Maintenance EA Post operation panels panels and batteries. suppliers for dismantling and disposal of cost panels and batteries.

Table 11: Environmental Monitoring Plan

Responsible Environmen Monitoring party Aspect to be Monitored Time and Frequency of Monitoring Location tal Features Cost (Implementation/ Supervision) Construction stage Noise Noise levels in dB(A) At the start of concerned activities. - Project site 2000*3 =6000 EPC Contractor & At least 3 times during construction - Front main road PMC period. Air Emission of dust and particulate At the start of concerned activities. - Project site 3000*3=9000 EPC Contractor & matter At least 3 times during construction - Front main road PMC period. Physical As specified in contractors’ plan Project site Project Site Project Cost EPC Contractor & Works Monthly PMC Progress

Responsible Environmen Monitoring party Aspect to be Monitored Time and Frequency of Monitoring Location tal Features Cost (Implementation/ Supervision) Occupational As specified in project OHS plan Project site Project Site Project Cost EPC Contractor & Health and prepared by Contractor Weekly PMC Safety Operation Stage Occupational As specified in project OHS plan Project site Project Site Project Cost EPC Contractor & Health and prepared by Contractor Weekly PMC Safety Note: This monitoring plan is prepared for one site. Same monitoring plan will be implemented on other solar power plant sites.

3. Implementation Arrangement

116. The main institutions that will be involved in environmental management activities are the Ministry of Finance and National Planning (MFNP) as the executing agency (EA) of the Project, the Ministry of Lands, Surveys, Natural Resources and Climate Change (MLECCNR) through its Energy Implementation Unit as implementing agency (IA), project management consultant (PMC), EPC contractor, and line agencies including the Energy Implementation Unit of MLECCNR. The IEE will be submitted to MLECCNR for review and approval as per the EIA Act.

117. EA has overall responsibility for all aspects of the Project. IA through support of PMC will be responsible for day to day management of technical aspects of the Project. PMC will be responsible to update EMP followed by design phase and he will also be responsible to approving contractors’ management plan, emergency plan, and occupational health and safety plan as well as to ensure on- ground implementation of the environmental management plan. PMC will provide training to IA staff on managing the environmental issued associated with project. EA will ensure the environmental management and monitoring budgets are available and utilized as necessary for timely implementation of EMP. Cost of capacity building is included in the capacity building component of the Project.

118. The Contractor will be required to have one staff with experience in environmental management. This staff will be responsible for preparing plans such as emergency preparedness plan; occupational health and safety plan, energy day to day implementation of EMP.

4. Environmental Management Budget and Resources

119. The cost of all compensation and rehabilitations works will be an integrated part of the overall Project cost, which will be borne by the Project. The preliminary estimated cost of the environmental management including implementation and monitoring is US$ 80,000 as detailed in Table 10 and Table 11.

J. CONCLUSION AND RECOMMONDATION

120. The environmental impacts associated with proposed installation of 450 kWpeak solar power plants have been assessed and described in the previous sections of this document. The findings establish that the project sites are not located in a sensitive ecosystem, and have no historical and cultural value. This nature of the project site coupled with the clean nature of solar power generation ensures that the Project will not cause any significant, lasting environmental impacts during construction, operation and decommissioning. Only minor and transient environmental disturbances would be experienced at the project sites during construction and operation, and they will be minimized through implementation of the EMP. The EMP will be updated in case of any change in project design followed by detailed design stage. It is then recommended that the Project be considered environmentally feasible, and that this IEE is adequate to justify environmental and social feasibility of the Project. There is no need for further analysis and this environmental assessment of the Project is considered complete.

121. It is concluded that the Project has no further environmental issues to follow up, and the adequate measures listed in IEE and EMP, when implemented, will fully comply with ADB’s SPS 2009 and Government requirements.

APPENDIX 1: LOCATIONS MAPS OF PROJECT SITES

Figure 1a: Location of Nomuka Solar Power Plant on the Island Map

Figure 1b: Location of Ha’afeva Solar Power Plant on the Island Map

Figure 1c: Location of ‘Uiha Solar Power Plant on the Island Map

Figure 1d: Location of Ha’ano Solar Power Plant on the Island Map

Figure 1e: Location of Niuatoputapu Solar Power Plant on the Island Map

Figure 1f: Location of Uihafo’ou Solar Home System on the Island Map

APPENDIX 2: PHOTOGRAPHS (FIELD AND CONSULTATIONS)

A. Photographs (site and consultations)

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APPENDIX 3: REA CHECKLLIST

SOLAR ENERGY

Rapid Environmental Assessment (REA) Checklist

Instructions:

(iii) Answer the questions assuming the “without mitigation” case. The purpose is to identify potential impacts. Use the “remarks” section to discuss any anticipated mitigation measures.

Country/Project Title: Kingdom of Tonga / Outer Island Renewable Energy Project – Phase 2 (450 KWpeak Solar Power Generation in Outer Islands of Ha’apai and Niuas)

Sector Division: PARD

Screening Questions Yes No Remarks A. Project Siting The proposed sites are located adjacent Is the Project area adjacent to or within any of the following to the existing diesel power generation environmentally sensitive areas? units at Nomuka, Ha’afeva, ‘Uiha and Ha’ano islands of Ha’apai and a new plant site in Niuatoputapu. The project will be implemented on a combined land area of 0.45 hectares which in non- residential land. There are no environmental sensitive areas reported in the project area. . Physical cultural heritage site X

. Located in or near to legally protected area X

. Located in or near to special habitats for biodiversity X (modified or natural habitats)

. Wetland X Coastline if about 1-2 km away from the proposed site. . Mangrove X Mangroves along the coastline which is about 2 km away from the proposed site.

Screening Questions Yes No Remarks . Estuarine X

. Offshore (marine) X Coastline if about 2 km away from the proposed site. B. Potential Environmental Impacts Will the Project cause…

. large scale land disturbance and land use impacts X Possible. The project will change land specially due to diversion of productive lands? use because of installation of solar panels on 0.45 hectares of land which currently has coconut trees and vegetative cover. . involuntary resettlement of people? (physical X displacement and/or economic displacement)

. disproportionate impacts on the poor, women and X children, Indigenous Peoples or other vulnerable groups?

 aesthetic degradation and property value loss due to X establishment of plant and ancillary facilities?

. changes in flow regimes of the water intake from surface X water or underground wells due to abstraction for cooling purposes?

. a threat to bird or bat life from colliding with the project X facilities and/or being burned by concentrated solar rays?

Screening Questions Yes No Remarks . Soil/water contamination due to use of hazardous X Possible. Waste generated during materials or disposal of broken or damaged solar cells construction will be handled of carefully. (photovoltaic technologies contain small amounts of cadmium, selenium and arsenic ) during installation, operation and decommissioning?

. noise disturbance during operation due to the proximity X of settlements or other features?

. visual impacts due to reflection from solar collector X Not expected. Solar panels will be arrays resulting in glint or glare? installed with a tilt angel to avoid glare and reflection. . large population influx during project construction and X Small scale construction. operation that causes increased burden on social infrastructure and services (such as water supply and sanitation systems)?

. social conflicts between local laborers and those from X Small scale construction. Local labour outside the area? employment.

. risks and vulnerabilities related to occupational health X and safety due to physical, chemical, biological, and radiological hazards during construction, installation, operation, and decommission?

APPENDIX 4: SUMMARY OF IUCN PROTECTED AREAS CATEGORIES SYSTEM

IUCN Category Categorization System12 IA - Strictly Protected Areas Category IA are strictly protected areas set aside to protect biodiversity and also possibly geological/geomorphical features, where human visitation, use and impacts are strictly controlled and limited to ensure protection of the conservation values IB - Protected Areas Category IB protected areas are usually large unmodified or slightly modified areas, retaining their natural character and influence without permanent or significant human habitation, which are protected and managed so as to preserve their natural condition. II - National Parks Category II protected areas are large natural or near natural areas set aside to protect large-scale ecological processes, along with the complement of species and ecosystems characteristic of the area, which also provide a foundation for environmentally and culturally compatible, spiritual, scientific, educational, recreational, and visitor opportunities. III-Natural Monument or Category III protected areas are set aside to protect a specific natural Feature monument, which can be a landform, sea mount, submarine cavern, geological feature such as a cave or even a living feature such as an ancient grove. They are generally quite small protected areas and often have high visitor value. IV - Habitat/ Species Category IV protected areas aim to protect particular species or Management Area habitats and management reflects this priority. Many Category IV protected areas will need regular, active interventions to address the requirements of particular species or to maintain habitats, but this is not a requirement of the category. V Protected Landscape/ A protected area where the interaction of people and nature over time Seascape has produced an area of distinct charcter with significant, ecological, biological, cultural and scenic value: and where safeguarding the integrity of this interaction is vital to protecting and sustaining the area and its associated nature conservation and other values. VI Protected area with Category VI protected areas conserve ecosystems and habitats sustainable use of natural together with associated cultural values and traditional natural resources resource management systems. They are generally large, with most of the area in a natural condition, where a proportion is under sustainable natural resource management and where low-level non- industrial use of natural resources compatible with nature conservation is seen as one of the main aims of the area

12 Source: UNCN (http://www.iucn.org/about/work/programmes/pa/pa_products/wcpa_categories/)