41924-014: Nam Ngiep 1 Hydropower Project
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Environmental and Social Monitoring Report Project Number: 41924-014 Independent Advisory Panel (Report No. 14, 8–14 December 2019) March 2020 Lao PDR: Nam Ngiep 1 Hydropower Project Prepared by Nam Ngiep 1 Power Company Limited for Asian Development Bank. This environmental and social monitoring report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. March 2020 Report Number 14 of the Independent Advisory Panel on the Nam Ngiep 1 Hydropower Project Lao PDR 14th site visit, 8-14 December 2019 Draft submitted: 10 January 2020 Final submitted: 31 March 2020 1 March 2020 Table of Contents Page no. List of acronyms and abbreviations 3 Introduction and Summary 4 Part 1: Independent Advisory Panel Actions 5 Part 2: Summary of IAP issues and recommendations 8 • Summary of Resettlement Issues 8 • Summary of Indigenous Peoples’ Issues 14 List of Annexes Annex 1: Resettlement Issues 25 Annex 2: Indigenous Peoples’ Issues 28 List of Photos Resettlement and Indigenous Peoples’ Photos 29 2 March 2020 List of acronyms and abbreviations ADB Asian Development Bank MAF Ministry of Agriculture and Forestry AIP Annual implementation plan m.a.s.l. meters above sea level MEM Ministry of Energy and Mines BAC Biodiversity Offset Advisory Committee MONRE Ministry of Natural Resources & Environment BIMOF Biodiversity Impact Mitigation and Offset MRC Mekong River Commission Framework msl mean sea level BKX Bolikhamxay Province NAFRI National Agriculture & Forestry Research Institute BOMP Biodiversity Offset Management Plan NBCA National biodiversity conservation area/conservation forest BOMU Biodiversity Offset Management Unit NC/NX Nam Chouane-Nam Xang biodiversity offset area BRP Biomass removal plan NNL No net loss BSP Biodiversity Service Provider NNP Nam Ngiep river CA Concession agreement NNP1 Nam Ngiep 1 hydropower project CDP Community development plan NNP2 Nam Ngiep 2 hydropower project CIA Cumulative impact assessment NNP1PC Nam Ngiep 1 Power Company COD Commercial operating date NPA National protected area CUZ controlled use zone NRM Natural resources management DCC District coordinating committee NTFPs Non-timber forest products DEB Department of Energy Business OP Operational phase DEQP Department of Environmental Quality PA Protected area Promotion DFO District forestry office PAP Project affected people DFRM Department of Forest Resources Management PAH Project affected household DG Director-general PFA National protection forest area DoF Department of Forestry PHXRA Phouhomxay Resettlement Area (formerly Houay Soup Resettlement Area) DONRE District office of natural resources & PLUP Participatory land use planning environment E&S Environment and social PMO/PO Prime Minister’s Office eflow Environmental flow PONRE Provincial office of natural resources and environment EGATi Electric Generating Authority of Thailand PPA Provincial protected area International Company EIA EMP Environmental impacts assessment PRMLCRC or Provincial Resettlement Management and Living Environmental management plan PRLRC Condition Restoration Committee ESMMP-CP Environmental and social management and PSOD Private Sector Operations Department, ADB monitoring plan-construction period EMO Environmental Management Office RCC Roller Compacted Concrete EMU Environmental Management Unit REMDP/REDP Resettlement and Ethnic Minority Development Plan EPF Environmental Protection Fund RIP Reservoir Impoundment Plan ESD Environment and Social Division RPM Reservoir Management Plan ESIA Environmental and social impacts assessment RMU Resettlement Management Unit FA Facility Agreement ROW Right-of-way FCZ Fish conservation zone SEA Strategic environmental assessment FMP Fisheries Management Plan SMO Social Management Office GOL Government of Lao PDR SPS Safeguard Policy Statement GRM Grievance Redress Mechanism TD Technical Division Ha hectare TPZ totally protected zone HCCEMMP Head Construction Contractor's Environmental UR Upper reservoir Management and Monitoring Plan Hh household US$ United States dollar HSK Hatsaykham hamlet UXO Unexploded ordinance IAP Independent Advisory Panel VDC Village development committee IAS Invasive alien species WCS Wildlife Conservation Society ICDP Integrated conservation and development WMO Watershed Management Office project IEE Initial environmental examination WMP Watershed management plan IFC International Finance Corporation WRPC Water Resources Protection Committee IP Indigenous people WRPO Water Resources Protection Office ISP Integrated spatial planning/Invasive species WWTP Wastewater treatment plant program IUCN International Union for Conservation of Nature XSB Xaysomboun Province IWMP Integrated watershed management plan LR Lower reservoir LTA Lenders’ technical advisors 3 March 2020 Report Number 14 of the Independent Advisory Panel on the Nam Ngiep 1 Hydropower Project Lao PDR 14th site visit, 8-14 December 2019 Introduction and Summary 1. The 14th field visit of the Independent Advisory Panel (IAP) to the Nam Ngiep 1 (NNP1) hydropower project was comprised of Mr. Anthony M. Zola, Resettlement Specialist, Chairman, and Mr. Songwit Chuamsakul, Indigenous Peoples (IP) Specialist. The IAP was pleased to work with representatives of the Asian Development Bank (ADB) during the field visit, including Mr. Karan Raj Gulshan, Investment Specialist; Ms. Jocelyn Erlinda Munsayac, Principal Safeguards Specialist (Social); Ms. Kristy L. Harrison, Senior Safeguards Specialist (Environment), PSOD; Ms. Aida Khalil Gomez, Safeguards Specialist (Environment) PSOD;Ms. Elizabeth Mann, senior social safeguards expert (ADB staff consultant); and, Mr. Raoul Cola, Lenders’ Technical Advisor (LTA), Social Expert. 2. The IAP noted progress in several areas during the site visit: • IAP recommendations continue to be implemented mostly effectively. • The Nam Ngiep 1 Power Company (NNP1PC) continues to have good relations with key agencies of the Government of Lao PDR (GOL). Bolikhamxay (BKX) and Xaysomboun (XSB) provincial officials are satisfied with the cooperation and coordination with NNP1PC. • The lives of resettler and self-resettler families interviewed by the IAP appear to be stable, with a return to normal living and livelihood patterns. Project affected people (PAP) are generally satisfied with NNP1PC livelihood restoration and social development activities. • Most land issues have been settled at the Phouhomxay Resettlement Area (PHXRA) as a result of completion of participatory land use planning (PLUP) and granting of land titles by Bolikhamxay provincial and Bolikhan district officials. • An operational Emergency Preparedness and Response Plan/Emergency Action Plan (EAP) is in place. Training has been provided to local authorities and district officials related to potential Project-related emergencies in all downstream villages. • NN1PC states that the Department of Energy Business (DEB) of the Ministry of Energy and Mines (MEM) already issued CDF guidelines for all independent power producers (IPP) on 22 August 2019. NNP1PC is still drafting its own project- specific guidelines. • Phong indigenous people (IP) in the area covered by the Biodiversity Offset Management Plan (BOMP) were informed and consulted in identifying the boundaries of the total protection zones. NNP1PC started the procurement process for preparing the Community Development Plan (CDP) 3. The IAP is concerned about the following challenges that NNP1PC is facing: • Continuing delays in repairing or improving agricultural infrastructure at PHXRA and Zone 2UR; reflecting on the professionalism of the technical division (TD), the image of NNP1PC, and the confidence of PAP at PHXRA in their ability to have livelihood restored. 4 March 2020 • Continuing reports of self-resettler encroachment in the Nam Ngiep watershed and on grazing lands at PHXRA. • Continuing dissatisfaction of PAP in Ban Hat Gniun host village (Zone 5) with the resolution of grievances related to compensation for land and allocation of land to resettlers. • The IAP is seriously concerned about the results of NNP1PC’s analysis of socio- economic and income data indicating that only host villagers are satisfactorily increasing their income. The PAP in Category 1 (PHXRA and self-resettlers) and Category 2 (PAP in Zone 2UR) remain significantly below the target of 200% increase in income within two years of resettlement. • Actual emergency evacuation drills, alarm systems with village-wide reach, improvement of roads going to designated safety zones, and validation of the risk level of each safety zone are needed in downstream villages against potential dangers and as a follow up to EAP training. • Continuing delays in adopting regulations for managing reservoir fisheries. • Continuing delays in providing funds to the district for watershed management. • Concern about food security at the PHXRA because of (i) the lack of sufficient irrigation water for wet and dry season cropping promised to resettlers by NNP1PC; and, (ii) continuing confrontation and tension between PHXRA resettlers holding land titles and former occupants of land in PHXRA from Hat Gniun and Hatsaykham villagers who