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Initial Environmental Examination Initial Environmental Examination August 2019 Tuvalu: Increasing Access to Renewable Energy Prepared by Tuvalu Electricity Corporation 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 the 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. TABLE OF CONTENTS ABBREVIATIONS v 1. INTRODUCTION 1 A. Project Background 1 B. Objectives and Scope of IEE 3 2. LEGAL AND POLICY FRAMEWORK 4 A. Legal and Policy Framework of Tuvalu 4 B. ADB Safeguard Policy Statement 7 3. PROJECT DESCRIPTION 8 A. Rationale 8 B. Proposed Works and Activities 9 4. BASELINE INFORMATION 20 A. Physical Resources 20 B. Terrestrial Biological Resources 32 C. Marine Biological Resources of Nukufetau 49 D. Socio-economic Resources 64 5. ANTICIPATED IMPACTS AND MITIGATION MEASURES 77 A. Overview 77 B. Design and Pre-construction Impacts 77 C. Construction Impacts on Physical Resources 80 D. Construction Impacts on Biological Resources 83 E. Construction Impacts on Socio-economic Resources 84 F. Operation Impacts 87 G. Decommissioning impacts 88 6. ANALYSIS OF ALTERNATIVES 89 7. CONSULTATION AND INFORMATION DISCLOSURE 90 A. Consultation 90 B. Information Disclosure 92 8. GRIEVANCE REDRESS MECHANISM 93 9. ENVIRONMENTAL MANAGEMENT PLAN 95 A. Introduction 95 B. Implementation arrangement and responsibilities 95 C. Mitigation Measures 97 D. Monitoring and reporting 98 10. CONCLUSIONS 120 ANNEX 1: INDIGENOUS OR POSSIBLY INDIGENOUS PLANT SPECIES OF TUVALU 121 i ANNEX 2: PLANTS OF POSSIBLE ABORIGINAL ORIGIN 125 ANNEX 3: LIST OF STAKEHOLDERS/COMMUNITIES CONSULTED 126 ANNEX 4: TEMPLATE FOR DOCUMENTATION OF PUBLIC CONSULTATIONS 130 ii Figures Figure 1.1: Map showing the location of Tuvalu its islands 2 Figure 3.1: Proposed project sites in Tuvalu 10 Figure 3.2: Location of project site in Nukulaelae 11 Figure 3.3: Nukulaelae site overview 11 Figure 3.4: Location of project site in Nukufetau 12 Figure 3.5: Nukufetau site overview 13 Figure 3.6: Location of project site in Nui 14 Figure 3.7: Nui site overview 14 Figure 3.8: Rooftop solar and BESS locations 16 Figure 4.1: Satellite (Google Earth) images of Nui, Nukufetau, Nukulaelae and Funafuti 22 Figure 4.2: Mean annual cycle of wave height (grey) and wave direction (blue) at Funafuti. (Source: Australian Government (2015) Current and Future Climate of Tuvalu. Report for the Pacific-Australia Climate Change Science and Adaptation Planning Program). 24 Figure 4.3: Cross-section of an atoll in Tuvalu showing common coastal erosional processes (Source: Ministry of Natural Resources, Environment, Agriculture and Lands (2007) Tuvalu’s National Adaptation Programme of Action). 25 Figure 4.4: Seasonal rainfall and temperature in Funafuti 27 Figure 4.5: Average positions of major climate features during Tuvalu’s wet season (November to April) (Source: Australian Government (2015) Current and Future Climate of Tuvalu. Report for the Pacific-Australia Climate Change Science and Adaptation Planning Program) 27 Figure 4.6: Occurrence of tropical cyclones that developed within or crossed the Tuvalu Exclusive Economic Zone per season between 1969 - 2010. A 11-year moving average is shown by the blue line. 28 Figure 4.7: Location of protected areas (red line) on Nui, Nukufetau, Nukulaelae and Funafuti (Source: UNEP-WCMC (2019). Protected Area Profile for Tuvalu from the World Database of Protected Areas, February 2019. Available at: www.protectedplanet.net.) 49 Figure 4.8: Marine habitat types of Nukufetau42 51 Figure 18: Flow chart of the GRM 94 iii Tables Table 2.1: International Conventions and Treaties 6 Table 3.1: Solar expansion on Nukulaelae, Nukufetau and Nui (subprojects 1a to 1c) 9 Table 3.2: Estimated contractor team size and timeframe for each site 18 Table 3.3: Proposed project schedule for implementation of projects for Outer Islands and Funafuti 19 Table 4.1: Tidal Range (2019) for Funafuti, Tuvalu 23 Table 4.2: Changes in land area from 1971-2014 for Nui, Nukufetau, Nukulaelae and Funafuti18 26 Table 4.3: Estimated areas of different land use/land cover types present in Tuvalu 34 Table 4.4: Approximate number (and % of total) of native and introduced flora species in Tuvalu 35 Table 4.5: Known and potential invasive weed species in Tuvalu 36 Table 4.6: Culturally important plant categories in Tuvalu 37 Table 4.7: Known invasive fauna species in Tuvalu 39 Table 4.8: Migratory, non-migratory breeding birds and threatened birds of Tuvalu (source: Birdlife International, IUCN, Watling 2001), 43 Table 4.9: Threatened and endemic reptiles of Tuvalu (source: IUCN) 45 Table 4.10: Endemic invertebrates of Tuvalu (source: IUCN)39 46 Table 4.11: Protected areas of Tuvalu as of 2011 47 Table 4.12: Reef habitat of Nukufetau42 50 Table 4.13: Threatened marine species of Tuvalu and their potential to occur at the proposed Nukufetau Solar PV project site (source: IUCN) 55 Table 4.14: Population of Tuvalu by Island 64 Table 4.15 Resident population of villages >100 residents on Nui, Nukufetau, Nukulaelae and Funafuti 65 Table 4.16: Household income sources in Tuvalu 68 Table 4.17: Household expenditure in Tuvalu 68 Table 4.18: Level of Unemployment in 2012 70 Table 4.19: Electricity generation and diesel fuel consumption for Funafuti and Outer islands in 2015 72 Table 4.20: Examples of tangible cultural heritage sites on Tuvalu 75 Table 7.1: Summary of stakeholder meetings 90 Table9.1: Organisational environmental responsibilities 95 Table 9.2: Environmental Management and Monitoring Plan 100 iv ABBREVIATIONS AC Alternating current ADB Asian Development Bank BSAP Biodiversity Strategy and Action Plan BESS Battery Energy Storage System CCP Communications and consultation plan (for the project) CEMP Construction Environmental Management Plan CITES Convention on International Trade in Endangered Species of Wild Fauna and Flora DC Direct current DoE Department of Environment DDR Due diligence report EEZ Exclusive Economic Zone EHSG Environmental, Health, and Safety Guidelines (of the World Bank Group) EIA Environmental Impact Assessment EMP Environmental Management Plan ENSO El Niño Southern Oscillation EPA Environmental Protection Authority ESCR Environmental and Social Complaints Register GDP Gross Domestic Product GFP Grievance Focal Point GHG Greenhouse gas GoT Government of Tuvalu GRC Grievance Redress Committee GRM Grievance Redress Mechanism ha Hectare IBA Important Bird and Biodiversity Areas IEE Initial Environmental Examination IUCN International Union for Conservation of Nature kW Kilowatt kWp Kilowatt peak MOF Ministry of Finance (Executing Agency) MTET Ministry of Transport, Energy and Tourism MW Megawatt MWp Megawatt peak OHS Occupational health and safety PPE Personal Protective Equipment PREIF Pacific Renewable Energy Investment Facility PV Photovoltaic SPS Safeguard Policy Statement 2009 (of ADB) SPREP Secretariat of the Pacific Regional Environment Programme TEC Tuvalu Electricity Corporation (Implementing Agency) UNESCO United Nations Educational, Scientific and Cultural Organization CURRENCY EQUIVALENTS Tuvalu uses the Australia dollar (AUD$) - as at January 2019 AU$1.00 = US$0.716 US$1.00 = AU$1.397 v EXECUTIVE SUMMARY The project. The Pacific Renewable Energy Investment Facility (PREIF) will administer a grant from the Asian Development Bank (ADB) for Tuvalu: Increasing Access to Renewable Energy (the project). The project will include subprojects on Nukulaelae, Nukufetau, Nui and Funafuti to continue the PREIF’s aim of transitioning electricity generation from diesel to sustainable renewable energy generation sources. Hybrid power systems were installed on Nukulaelae, Nukufetau and Nui in 2015 via a European Union (EU) funded project. The subprojects identified as part of this project will expand the existing hybrid power stations by installing additional solar capacity, thereby increasing the renewable energy contribution from approximately 60 - 70% to more than 90%. The subprojects will also increase flood resilience by replacing the existing diesel powerhouse on Nukulaelae and upgrading distribution system pillar boxes on all outer islands as well as improving power system monitoring and communication. The subprojects on Funafuti will install additional solar and a new battery energy storage system (BESS) to increase the renewable energy contribution. The renewable energy contribution is expected to increase from approximately 16% to 32% as a result of these subprojects. The Funafuti subprojects also include a control system to better manage power system and allow greater renewable energy penetration as well as improved communications between distributed generation sources. The subprojects will assist Tuvalu meet the objectives of its National Energy Policy (2009) as well as its goal of achieving 100% renewable energy by 2025 as articulated in the "Enetise Tutumau" - the Master Plan for Renewable Electricity and Energy Efficiency in Tuvalu. Implementation arrangements. The Ministry of Finance (MOF) will be the executing agency for the project and the Tuvalu Electricity Corporation (TEC) will be the implementing agency reporting to the Ministry of Transport, Energy and Tourism(MTET).
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