Environmental Assessment Document

Project No.: 43141-044 Document Stage: Draft Date: March 2016

PNG: Civil Aviation Development and Investment Program- Tranche 3

Pavement Strengthening and Associated Works – Mt. Hagen Airport, Western Highlands Province

Initial Environmental Examination (IEE)

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.

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TABLE OF CONTENTS

EXECUTIVE SUMMARY ...... V I. INTRODUCTION ...... 1 II. DESCRIPTION OF THE PROJECT ...... 3 A. DESCRIPTION OF THE SUBPROJECT ...... 4 a. Proposed Project Works ...... 4 b. Project Requirements ...... 5 B. DESCRIPTION OF THE ENVIRONMENT (BASELINE DATA) ...... 6 a. Physical Environment ...... 6 b. Biological Environment ...... 7 c. Socio – Economic Environment ...... 9 C. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES ...... 9 I. PRECONSTRUCTION ...... 9 a. Establishment of Contractors Site and Facilities ...... 10 b. Construction Workers Accommodation ...... 10 c. Stockpiling of Construction Material ...... 10 II. CONSTRUCTION ...... 11 d. Construction Activity...... 11 e. Storage and Handling of Fuel, Oil and Other Chemicals ...... 12 f. Health and Safety ...... 13 g. Social Impacts during Construction ...... 13 h. Noise Impacts and Air Quality ...... 13 i. Traffic Impacts ...... 14 III. OPERATIONAL ...... 14 j. Operation Stage Issues ...... 14 D. ENVIRONMENTAL MANAGEMENT PLAN ...... 15 a. Institutional Arrangements ...... 15 E. INFORMATION DISCLOSURE, CONSULTATION AND PARTICIPATION ...... 16 a. Introduction ...... 16 b. Issues Raised and Responses ...... 16 c. Information Disclosure ...... 17 F. GRIEVANCE REDRESS MECHANISM ...... 17 B. TASK OF IMPLEMENTING AGENCIES ...... 22 B1. NAC – PIU ...... 22 B2. ADB ...... 23 B3. Contractor ...... 23 B4. CEPA ...... 23 G. MONITORING AND REPORTING...... 23 H. CONCLUSION AND RECOMMENDATION ...... 27 APPENDIX 1: ENVIRONMENTAL MONITORING PLAN ...... 28 APPENDIX 2: PHOTOGRAPHS ...... 30 P a g e | iii

LIST OF TABLES Table 1: Proposed Works for Mt Hagen Airport ...... 4 Table 2: Consultations for Mt Hagen Airport ...... 16 Table 3: Design, Construction and Operational Environmental Management Plan ...... 19 Table 4: Institutional Responsibilities for Implementing Safeguards ...... 21 Table 4. Environmental Monitoring Plan ...... 25 Table 5: Roles and Responsibilities for Environmental Monitoring ...... 26 Table 6: Matrix of EMP for Mt Hagen Airport ...... 28 Table 7: Summary of Costs for the Proposed Works ...... 29

LIST OF FIGURES Figure 1: LOCATION OF PAPUA NEW GUINEA AND MT HAGEN AIRPORT ...... 2 FIGURE 2: AERIAL VIEW OF MT HAGEN AIRPORT ...... 6 FIGURE 3: GENERAL LAYOUT OF MT HAGEN AIRPORT ...... 8

LIST OF PHOTOGRAPHS Photo 1: WESTERN END OF THE RUNWAY PAVMENT THAT WILL BE UPGRADED 30 Photo 2. TREE TO BE CUT DOWN FOR AIRCRAFT APPROACH PATH 30

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ACRONYMS AND ABBREVIATIONS

ADB Asian Development Bank CADIP Civil Aviation Development Investment Program CEMP Contractor’s Environmental Management Plan CEPA Conservation & Environment Protection Authority DEC Department of Environment and Conservation EA Executing Agency EARF Environmental Assessment and Review Framework EHPA Eastern Highlands Provincial Administration EMP Environmental Management Plan EO environmental officer EP Environmental Permit GoPNG Government of the Independent State of Papua New Guinea GRM Grievance Redress Mechanism ICAO International Civil Aviation Organization IEE Initial Environmental Examination IES international environmental specialist MFF Multi-tranche Financing Facility NAC National Airports Corporation PCMC Project Coordination and Monitoring Committee PFR Periodic Financing Request PNG Papua New Guinea PIU Project Implementation Unit QPR Quarterly Progress Report SPS Safeguard Policy Statement WHP Western Highlands Province

WEIGHTS AND MEASURES dB (A) Decibel (A-weighted) ASL above sea level ft Feet/Foot km kilometre km/h kilometre per hour m metre m2 square metre m3 cubic metre s second

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EXECUTIVE SUMMARY

I. The Government of the Independent State of Papua New Guinea (GoPNG) has requested the Asian Development Bank (ADB) to provide a multi-tranche financing facility (MFF) to facilitate investments to improve the current state of the country’s domestic air transport system under the Civil Aviation Development Investment Program (CADIP). Twelve major airports have been identified for improvements under Tranche 3 due to deteriorated pavement conditions and low pavement strength to ensure that these airports are capable of accommodating the current operating aircraft or similar within a safe and secure operating environment

II. CADIP is a comprehensive program to improve, rehabilitate and maintain major domestic airports in Papua New Guinea (PNG) so that these airports are compliant with the domestic and international aviation safety and security standards. The executing agency for CADIP is the National Airports Corporation (NAC) who owns, operate and maintain twenty one (21) national airports in PNG on behalf of GoPNG.

III. An environmental assessment and review framework (EARF) has been prepared to guide environmental safeguards implementation for Tranche 3. In accordance with the EARF this Initial Environmental Examination (IEE) presents the environmental assessment of one of the project under Tranche 3 – Pavement Strengthening and Associated Works at Mt Hagen Airport, Western Highlands Province of PNG. This IEE has been carried out to ensure that the potential adverse environmental impacts are appropriately addressed in line with ADB Safeguard Policy Statement 2009 and the GoPNG Environment Act 2000. The key environmental impacts on the physical, natural and human environments have been assessed.

IV. The main findings of this IEE indicate that the impacts that will arise from Mt Hagen Airport Pavement Strengthening & Associated Works will be minimal and generally insignificant as the works only involve rehabilitation and improving the aircraft pavement and associated works within the existing airport boundary for duration of 18 months. The project is classified as Category B because the potential adverse environmental impacts are site-specific, few if any of them are temporary, and mitigation measures can be designed readily.

V. The potential environmental impacts associated with the project particularly occur during the construction and operation phases which will typically involve:

(i) Earthworks and pavement works. During the conduct of earthworks and pavement works, heavy rains and the associated run-off into drains and soil erosion problems can be expected in some areas such as flight strip widening and Open Unlined Drain which may cause surface water quality problem in nearby water courses. (ii) Pollution. Problems of pollution related to the disposal of sewage, waste fuel& petrochemical products, salvage materials, oils spillage and leakage, solid wastes generated during construction (from worker camps) and operations could occur. Temporary site contamination, dust and noise generation associated with construction, and pollution associated with firefighting drills may cause environmental impacts. (iii) Noise. Construction activities may cause noise impacts from vehicle movements for a short duration. Noise from aircraft is already existing and it will be intermittent and in short duration. Significant incremental increase of flight frequency is not expected.

VI. Adherence to best engineering practices during rehabilitation/reconstruction and implementation of the environmental management plan will avoid or adequately mitigate all of the rehabilitation/ reconstruction-related impacts.

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VII. A Grievance Redress Mechanism set up in Tranche 1 and 2 will be used in Tranche 3 and the Provincial Administration is fully aware of its role. Public support during consultation for the project was unanimous and the community wanted the project to commence immediately as they seek possible job opportunities with contractors. Already the new terminal is boosting travel and the pavement works will enhance this further for the travelling public.

VIII. The upgrading of the Mt Hagen Airport is designed to bring the facilities to a level of development to fully meet airport safety standards and provide the primary runway, taxiway and apron capability to accept operations by the F100 aircraft, or similar and it is also a linkage for travel to Cairns in Australia.

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I. INTRODUCTION

1. The Government of the Independent State of Papua New Guinea (GoPNG) has requested the Asian Development Bank (ADB) to provide a multi-tranche financing facility (MFF) to facilitate investments to improve the current state of the country’s domestic air transport system under the Civil Aviation Development and Investment Program - (Investment Program). The first two phases (Tranche 1& 2) has had its clearance done and this is Tranche 3. Tranche 3 will cover (twelve) major airports in the country where they have been identified for upgrading and rehabilitation mainly based on the relative importance of these airports as domestic hubs for tourism and economic development on a regional basis. The Program is a comprehensive plan to upgrade, rehabilitate and maintain major domestic airports in Papua New Guinea (PNG). The executing agency (EA) for the Program is the National Airports Corporation1 (NAC).

2. This Initial Environmental Examination (IEE) presents the environmental assessments of one of the subprojects under Tranche 3 – Pavement Strengthening and Associated Works at the Mt Hagen Airport. This IEE has been carried out to ensure that the potential adverse environmental impacts are appropriately addressed in line with Safeguard Policy Statement (2009) and ADB Environmental Safeguard Sourcebook (2012). This IEE has also been prepared to meet the requirements of the GoPNG for environmental assessment.

3. The main purpose of this IEE is to identify impacts associated with the Pavement Strengthening and Associated Works at the Mt Hagen Airport in the Western Highlands Province (Figure 1) and mitigations required to address them.

A. Overview

4. The proposed investment program will entail the upgrading and rehabilitation of the following existing airports (Tranche 3): Madang; Mendi; Kavieng; Vanimo, Kerema, Kiunga, Tari, Momote, Buka, Gurney, Wewak and Mt Hagen. The upgrading and improvement of these major domestic airports is designed to bring the facilities to a level of development to fully meet airport safety standards and provide the runway, taxiway and apron capability to accept unrestricted operations by Fokker 100, Dash 8 and QF 400 aircrafts.

1. Environmental Regulatory Compliance

5. The environmental regulations of GoPNG are derived from the Environment Act 2000. The Environment (Prescribed Activities) Regulation 2002 categorizes designated projects that need environmental assessment as “Prescribed Activities” in two schedules according to the anticipated potential environmental impact. Projects that likely to have significant adverse environmental impact (Level 2 and Level 3) are required to obtain an Environmental Permit (EP) from the Environment and Protection Authority (CEPA) following environmental assessment. The upgrading and rehabilitation of existing airports is not listed as Level 2 and Level 3 of the “Prescribed Activities”. However certain associated project activities commonly associated with upgrading and improvement works such as earthworks, surfacing, discharge of waste water, establishment of borrow pits, sourcing and extraction of aggregate materials from surface water courses are Level 2 activities that may require an EP depending on the duration and scale of those activities. Therefore, to ensure compliance with the government environmental assessment requirements, NAC will disclose the scale and scope of the subprojects to CEPA so that CEPA can decide whether any specific environmental requirements

1Project 1 rehabilitation work was under the Civil Aviation Authority (CAA) and was the predecessor for NAC.

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will be needed for the proposed airport upgrading and rehabilitation. Considering the government environmental requirements and ADB Environmental Safeguard Sourcebook (2012), an IEE will be prepared for each subproject classified as environmental category B at the minimum.

Figure 1: LOCATION OF PAPUA NEW GUINEA AND MT HAGEN AIRPORT

6. Pollution standards are described for the protection of marine and aquatic life in fresh and marine waters in the Environment (Water Quality Criteria) Regulation 2002. These standards will be referred to for water quality monitoring during the environmental management of the subprojects.

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C. Environmental Category of the Subproject

7. Under ADB’s Safeguard Policy Statement (2009) and Environmental Safeguard Sourcebook (2012) Tranche 3 projects are classified as Environmental Category B that requires IEE.

D. Objectives and Scope of IEE

8. The objectives of this IEE were to:

 Assess the existing environmental conditions in the project area including the identification of environmentally sensitive areas;  Assess the proposed planning and development activities to identify their potential impacts, evaluate the impacts, and determine their significance; and  Propose appropriate mitigation measures that can be incorporated into the proposed activities to minimize any adverse impacts, ensure that residual impacts are acceptable and propose monitoring and planning of projects under Tranche 3.

9. This IEE is based mainly on secondary sources of information, field reconnaissance surveys and public consultation undertaken specifically for this study was also undertaken.

E. Report Structure

10. Following this introduction this report contains seven more sections including (ii) description of subproject; (iii) description of the environment; (iv) screening environmental impacts and mitigation; (v) public consultation; (vi) institutional requirements and environmental management plan; (vii) findings and recommendations; and (viii) conclusions.

II. DESCRIPTION OF THE PROJECT

11. The current state of the airports in PNG is inadequate to meet the increasing demand for air travel both for tourism and commercial purposes. This, in essence, presents itself as an obstacle to further economic growth and development of major regional centres in PNG and the country as a whole. The identified major domestic airports need to be upgraded and improved to meet the international standards and requirements and make it safety compliant as prescribed by the International Civil Aviation Organization (ICAO).

12. Tranche 3 of development investments under CADIP will be the upgrading and rehabilitation of the existing Kavieng Airport in the New Ireland Province; Mendi Airport in Southern Highlands Province; Madang Airport in Madang Province; Vanimo Airport in West Sepik Province, Mt Hagen in Western Highlands Province, Wewak Airport in East Sepik Province, Tari Airport in Hela Province, Gurney Airport in Milne Bay Province, Kerema Airport in Gulf Province, Kiunga Airport in the Western Province, Buka Airport in the Autonomous Region of Bougainville and Momote Airport in the Manus Province. Only the scope of works for Mt Hagen Airport is in Table 1.

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A. DESCRIPTION OF THE SUBPROJECT

a. Proposed Project Works 13. The Proposal is to upgrade the Mt Hagen Airport to make it safety compliant as one of the highlands regional airport that could accommodate and be suitable for the operation of Fokker 100 aircraft or similar, and for the airport to expand its role as the major domestic hub for Western Highlands Province. Major upgrading works will be on the airside portion of the facility and minor works on the landside. All works will be within the existing aerodrome land boundary. No additional land area will be required outside of aerodrome boundary (Figure 2). The upgrading works will commence after all detail design, scope of works and approvals have been obtained; and the contractor selected to carry out the works. 14. The construction period of the proposed activities will be 18 months. The upgrading works will be within the existing land area of the airport together with the fencing installation to be re-aligned to follow the airport boundary. In addition, the wear and tear of the runway pavement is self- explanatory for this importance scope of works. 15. The development works (Table 1), which will all be on the airside portion of the facility and confined to the limits of the existing pavements (main runway, taxiways and apron) area. 16. Mt Hagen Airport upgrading will involve the following estimated materials and earthworks quantities: - Cut to stockpile 100 millimetres (mm) topsoil for future - 15, 000 cubic metres (m3) - Spoil (excavation material) - 30,000 m3 - Select Fill Material - 80,000 m3 - Crushed River Gravel Sub Base - 10,000 m3 - 26.5 mm Base course - 45,000 m3 . Topsoil will be used and/or be re-used for topsoil and grassing . Excavated in-situ material will be used in landscaping and/or flight strip widening and grading. . All materials will be stockpiled at a designated location on the airside. . Base-course material shall be crushed river gravel – brought in potentially from Mt Hagen River. . 10 m3 trucks shall cart material from source and stockpile on site. . Contractor’s Site shall be located at the Airside (Area approx. = 100 m x 50 m).

Table 1: Proposed Works for Mt Hagen Airport

A. Aircraft Pavements Strengthening and Associated Works

. Repairs to existing aircraft pavement (Rwy,Twy& Apron); . Strengthen existing Runway (2100m X 30m) including turning nodes at each end; . Strengthen existing Apron, . Strengthen existing 3 x Stub Taxiways and 1 x Parallel Taxiway; . Construct 3.0m wide full strength Shoulders to existing Runway both sides and to Turning Nodes both ends; . Reconstruct RESAs each end to match raised Runway and Stop way surfaces; . Construct 5.0m wide shoulders to Apron, Parallel Taxiway and 3No. Stub Taxiways; . Construct Ramp at intersection of main Runway and Cross-wind Runway; . Bituminous surfacing to new and strengthened pavements. Prime and 3 x coat (10mm/7mm and sand) hot bitumen seal; P a g e | 5

. Widen Runway Strip to 150m wide; . Supply and place 100mm topsoil including grassing of all flank areas; . Construct 2 x concrete wheel pads for F100 aircraft parking bays; . Construct 3 x concrete parking pads (24m X 16m x 0.3m) for1 x B737and 2 x F100 aircraft parking; . Provision of an isolated parking bay . Supply and apply aircraft fuel resistant membrane on 5 x aircraft parking bays; . Supply and apply temporary and permanent aircraft pavement line markings; and . Provide improvements to airfield drainage systems including construction of OUD either side of widened runway strip and reconstruction of pipe culverts and headwalls;

B. Landside Works, Airfield Lighting and Electrical Works, and Associated Works

. Adjust levels to PAPI both ends including flight testing and commissioning; . Provision of Apron Flood Lighting . Provision of a new over flow parking area for 20 parking spaces, . Design and Construct New Air Traffic Control Tower . Design and Construct new Two bay RFF Fire Station & Training Ground, . Construction of a 4 Bay workshop, . Supply and delivery of potable/mobile flood light . Construct 1 x lockable 4 bay Shed for Tractor, Slasher, Trailer and Hay Bailer; . Supply and deliver to site 1 x M95Kubouta4WD 80HP Diesel Tractor with Canopy and 1 x Heavy Duty 2.40m dia Superior LX240 Slasher complete with connections to link to Tractor including Trailer and Hay Bailer. . Construct 1 x 3 Bedroom Timber Framed Standard H65 House on high post with storeroom underneath in NAC compound. . Construct 4 x 3 Bedroom Timber Framed Standard L40/96 House on high post in NAC compound. . Supply and Deliver to Site 160No. Cone Markers (80 White, 40 Yellow & 40 Red & White). . Supply and Deliver to Site 4 x Unserviceability Crosses painted white. . Supply, Deliver and Install 2x New Wind Indicators . Construct 1 x Signal Circle, All NAC operational buildings shall be constructed at the Northern side of the Aerodrome. This includes the workshop, Tractor shed and the Contractor’s depot.

b. Project Requirements

17. Most of the road links around Mt Hagen airport are sealed. Constant power supply comes from the main Yonki Dam power supply. There are usually occasional blackouts so the project will install a diesel power generator at the airport so that continuous power supply is available for the airport facilities.

18. Water supply into the airport hydrants and terminal facilities including the airline operators (heavy lift, Air Niugini) comes from the township main water supply. The same water supply provides water for the town residents and business houses; government offices/buildings. The new terminal has an improved sanitation system and large capacity water storage tanks supplement water when there is an increase in passenger numbers and the need for sanitation services.

19. Material for the pavement strengthening work including select fill material, crushed river gravel sub base, cement treated base and pavement construction material will most likely be sourced from the Kuman River and other quarry sites in the vicinity of Mt Hagen. The contractor has not been appointed as yet and may source some other fill material from other quarries and borrow pits but details are not known at this stage.

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20. As for spoils which will include worn out bitumen surface, the intention is for the contractor to have it levelled off along the edge of the aerodrome and then have grassing placed on it to assist regrowth and stabilization. Also these could be taken away to areas where the community may need to level off a depression around their residence.

FIGURE 2: AERIAL VIEW OF MT HAGEN AIRPORT

B. DESCRIPTION OF THE ENVIRONMENT (BASELINE DATA)

a. Physical Environment 1. Meteorology & Climate

21. The climate of the Highlands of PNG is alpine/sub-tropical. Temperatures vary from about 23 C (day) to 18 C (night). This climate persists throughout the year. The northwest and southeast trade winds continue throughout the year. Based on 1998-2000 records, there had been changes in the annual rainfall especially in Western areas (2880mm/year) and the central (over 3,000mm/year) of the Highlands Region. This climate was influenced strongly by severe El Nino events.

22. The World Bank reported that rates of change are likely to increase in the future, in terms of both average and extreme conditions. In general, the future climate is expected to become more El- Niño like, resulting in more rain in the equatorial Pacific. The project area is expected to receive up to 10 percent more rainfall for a 1°C of global warming (by 2100, the average temperatures are expected to rise by between 1.6–3.4°C). P a g e | 7

23. In PNG current weather patterns may indicate the types of impacts that could be expected to occur as a result of major climatic change (global warming). One example was the serious drought that affected much of the country in 1997-1998, which was linked to the large-scale El Niño/La Niña weather phenomenon. Other types of natural disasters including extreme rainfall events, drought, high sea levels, extreme winds and extreme air temperatures already affect thousands of people in PNG, and may further intensify or become more frequent with global warming.

2. Geography and Topography.

24. The Highlands of PNG are biophysically diverse. The country is tectonically active being between areas in the world. PNG lies in the collision zone between the Pacific and the Australian tectonic plates and is associated with earthquakes and volcanic activities. Overall, seismic activity in PNG is mostly evidenced by landslides and subsidence. There is no record of recent volcanic activity in the Highlands or earthquakes. Heavy rainfall and smaller ground tremors are responsible for deteriorated sections of national and rural roads. The subproject lies on volcanic material dominated by volcanic breccia, agglomerate and tuff of varying age and structure. In between these volcanic derived ridges and slopes are recently deposited gravels and silts in narrow river valleys. However soil type should have very little bearing on the implementation of the projects.

3. Mineral resources

25. Mineral resources exploration has occurred in the fringes of the WHP for a long time now but none of the prospects have been developed into a mine. None of these areas occur in the vicinity of the Mt Hagen airport.

4. Water resource

26. River flows in the Highlands area are the highest from December to April. Most of the streams and creeks discharge all year around carrying high sediment loads, depositing large quantities of gravels and sands in the lower reaches. During the wet season, bridges and culverts are regularly inundated, cutting off roads and villages. 27. No notable stream runs in the vicinity of the airport area although runoffs do follow unlined drains that run parallel to the runway length.

b. Biological Environment

28. Subsistence agriculture dominates the Highlands’ regional economy and Mt Hagen and surrounding areas have all been cleared and cultivated. In the vicinity of the airport there are gardens and residential house with remnants of Casuarina equisetifolia (yar) trees and hoop pine trees. There is no endemic or endangered tree species surrounding the immediate airport area.

29. There are no forests used for large timber extraction in any of the areas which are directly within the proposed development area. The nearby forests provide timber, vines and bamboo for the local population to construct dwellings and for craft work. Pandanus palms in the higher areas yield crops of nuts each year. Coffee plantations are present near the periphery of the existing airport.

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FIGURE 3: GENERAL LAYOUT OF MT HAGEN AIRPORT

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c. Socio – Economic Environment 1. Population

30. 2The population of Mount Hagen was 46,250 in 2000. It is has a high population increase of 2.5% per annum hence there is a lot of demand on resources such as the education, health and government services and land use. A similar situation exists for the other provinces.

31. Around the airport in the 1 kilometre radius are the Pultimp village and other hamlets, residential and hotels, guesthouses and trucking container facilities.

2. Cultural and historical sites, schools and housing

32. There were no sites of cultural significance found near the area of the proposed development (Mt. Hagen Airport). There are chapels and churches nearby in some villages.

3. Health and sanitation

33. The greatest health concern in PNG is HIV/AIDS with current infection standing at 50,000 individuals with a potential infection rate of 30% of the total population within 10 years. The provinces with the highest occurrence of HIV/AIDS are Western Highlands, West Sepik, Western, and Morobe Provinces and the National Capital District. These are areas where population concentration and pressures on the natural environment are highest. Vulnerable groups include women, sex workers, youth, the poor, and workers in industrial enclaves (mining camps, factories etc).

34. In the village of Pultimp which is adjacent to the existing Mt. Hagen Airport (Kakamuga Airport), 4 reportedly have perished from HIV and an estimated 140 villagers are known to be infected. (Data from villagers provided during the Consultations)

C. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES

35. This section provides an assessment of the likely impacts associated with the pavement strengthening and associated works and ways to mitigate and/or manage them. The works will not result in any significant changes in environment beyond the existing airport boundaries. The assessment focuses on pre-construction, construction and operational stage impacts.

I. PRECONSTRUCTION 36. A number of activities will occur during the preconstruction phase where there is (i) the Establishment of Contractors Site and Facilities, (ii) Constructions Workers Accommodation and (iii) Stockpiling of Construction Material.

37. The three activities are confined within designated areas within the aerodrome area or in its vicinity. Some impact will occur on the physical environment where clearing and grubbing will occur to site these facilities .

2https://en.wikipedia.org/wiki/Mount_Hagen

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38. Impacts on the Biological Environment will be minimal as no clearing is anticipated and the vacant aerodrome area will be taken up for the facilities, accommodation and lay down areas for construction material. Socio – economic impacts during the preconstruction will be positive should the community participate in pre-construction and there is always the possibility of STD and HIV should the contractors make contacts with the nearby villages, although the Contractors Public Relations Officer is tasked to ensure that these do not occur.

a. Establishment of Contractors Site and Facilities

39. The contractor’s work site establishment (inclusive of stockpiling) will be located outside of the airside and require an area of approximately 100 m x 50 m. Inappropriate disposal of wastewater and effluent from rest room and solid waste can cause pollution. Pollution anticipated to be generated during construction is expected to include day-to-day production of solid waste, domestic sewage, and oil and chemical wastes. The storage and handling of petro-chemicals will require careful management; an important part of the environmental management plan (EMP) will be requirement for an emergency response plan for spills and accidents.

40. The contractor’s depot area and yard/offices will be provided with sanitary disposal facilities that will address the generation of domestic wastewater and proper solid waste management. Silt traps shall be established around areas identified for clearing and drainage works to prevent siltation of any surrounding waters. During the pre-construction and construction period an adequate supply of an appropriate quality of water will be provided for both domestic (for the contractor’s depot area) and other purposes (construction activities i.e. concrete mixing, clean-up of machineries and washing of trucks).

41. Mitigation measures include:  Restricting the contractor to a single, pre-planned construction site;  Requiring the contractor to install a septic tank or mobile toilets (if not connected to the main sewerage system)of adequate capacity;  Establishing mechanisms for grey water to be managed according to site conditions;  Requiring that all lubricants be collected, stored correctly and recycled;  Ensuring that the contractor has a spill contingency plan including drainage/settling pond control, bunds-drainage around fuel and storage areas;  Provision of receptacles for rubbish and rubbish to be disposed of at approved site; and  Banning of burning of rubbish or waste permitted at yard or work site.  Provision of complete and proper PPEs to workers

b. Construction Workers Accommodation

42. Establishment of contractors’ camp site will also comply with mitigation measures of waste management. Otherwise, contractor will rent a small compound for the skilled staff (10-15 persons) recruited for the construction works such as the Pavements Supervisor and Foreman, Mechanical Supervisor and Plant Operations Supervisor, etc. All other skilled and unskilled personnel which are estimated at 30- 40 persons shall be sourced locally and would not require housing in campsite. c. Stockpiling of Construction Material

43. The development works (i.e. pavement strengthening, flight strip widening, construction of P a g e | 11 shoulders to runway, taxiway and apron, drainage improvements, etc.) entails the construction of sub-grade and subsequent pavement base, foundations, earthworks, and laying of pavement. These works will require gravel, sand, bitumen, culverts, backfill aggregate material and the supply of other requisite materials. The bulk delivery of materials will be stockpiled on site. Monitoring of this impact shall be implemented as part of the contractor’s environmental management plan (CEMP) with clean-up initiatives undertaken as required. Mitigation measures include:  Transportation of materials to be limited to short periods to minimize traffic disturbance;  Transportation to be only during the dry days when unsealed roads are strong and also to lessen impacts on nearby residences, run-off and soil loss;  Water trucks to be on standby to water-down dust generated from unsealed roads during transportation of materials.  All stockpiled materials to be adequately contained in a bund type of structure to minimize run-off and covered to minimize dust; and  Locate all stockpiled in controlled areas away from water bodies including nearby residential areas.

II. CONSTRUCTION

44. The Constructions phase has a number of activities or induced activities such as (i) Clearing and Grubbing, (ii) Pavement Construction, (iii) Building Construction, (IV) Storage and Handling of Fuel, Oil and Other Chemicals, (V) Health and Safety, (VI) Social Impacts, (Vii) Noise impacts and Air Quality and (VIII) Traffic Impacts.

45. All these activities will be confined to the construction area and physical and biological impacts will occur within the shrubs and trees that will be cleared for the new terminal and market buildings. There is the possibility of fuel, oil and other chemicals that will into the water ways although there is no noticeable water way in the vicinity of the construction area. The limestone substrate allow for runoff to permeate through.

46. Health and Safety, Social Impacts, Noise, Air Quality and Traffic Impacts are ongoing impacts where appropriate mitigations measures will be in place in the Environmental Management Plan.

d. Construction Activity

47. Clearing and Grubbing. All grubbing of topsoil, clearing of grass areas and trees/shrubs, old fences and culvert materials clearance will require stockpiling in controlled areas during construction. All topsoil, grass and culvert clearance will be cleared and stacked to edges of the fenced area to allow for re-vegetation or taken to designated sites for reuse. Exposure of soil can degrade water quality through soil erosion, silt laden run-off and loose soil and debris entering waterways if works are undertaken in the rainy season. The projected duration of this impact is short-term and insignificant in scale provided that mitigation measures are properly implemented. Mitigation and management measures include:  Removal of only necessary trees/shrubs as indicated or marked by the project implementation unit (PIU);  Topsoil, grass and spoils resulting from old fence/culvert clearance material clearance to be re-used where possible to provide landscaping in terminal and parking areas; and

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 The removal of topsoil followed by placement of base coarse material quickly to prevent soil erosion.  Installation of sedimentation controls in drains

48. Pavement Construction. Excavation and disposal of the existing pavement can degrade water quality through soil erosion, silt laden run-off and loose soil and debris entering waterways if works are undertaken in the rainy season. All construction spoils including solid and coal tar wastes and empty containers from the work areas should be removed from site and transported to the public waste disposal area. The projected duration of this impact is short-term and insignificant in scale provided that mitigation measures are properly implemented. Mitigation measures include:  Locate stockpiles in controlled areas;  Sub-grade and sub-base material placed quickly after removal of topsoil;  Plan construction work during dry season; and cease work during rain  Removal of spoils and construction debris.  Disturbed areas re-vegetated immediately after earthworks completed and/or sealed;  Processing and stockpiling of bitumen and aggregate to be in designated area;  Materials to be stored in bounded area for duration of works;  Drainage controls applied during construction; and  Implement all measures for storage and handling of fuel, oil and chemicals.

49. Building Construction. Building construction such as airport terminal and NAC staff house will commence upon completion of the sub-ground service activities. Building construction shall occur in concurrence with runway pavement upgrading. Mitigation measures include:  All building material confined in a single secured area;  All building material, waste materials to be arranged in classification/order and stored in appropriate location;  Concreting to be performed after foundation framework is in place;  Excess concrete from drum and concrete chute to be cleaned at designated contractors’ site; and  Solid and liquid waste associated with the building construction to be taken to municipal waste dumpsite.

e. Storage and Handling of Fuel, Oil and Other Chemicals

50. The use of equipment and plant during the works will require usage, storage and handling of fuel, oil and other materials. Subsurface water resources near the selected subproject road sections could be anticipated to be contaminated by fuel and chemical spills. The following mitigation measures are included in the EMP to reduce the levels of impact associated with such effects:  Installation of oil and water separators, and traps on drains;  Development of safe storage areas (including bunds) and proper handling of hazardous and toxic materials;  Proper disposal of hazardous and toxic materials;  All vehicles, equipment and appurtenant facilities will be properly maintained during P a g e | 13

the works to reduce the risk of oil or fuel leakage;  Collect and recycle petroleum products;  Construction of bund walls and drainage systems around fuel storage areas; and  Contractor to prepare spill response plan/measures.

f. Health and Safety

51. During construction activities, work sites, traffic, and operation of equipment, plants and vehicles can pose health and safety risks for workers and the community. Health and safety codes of PNG and World Bank Group’s Environment, Health and Safety Guidelines (as per the SPS) will apply at all sub-project sites. Measures to mitigate risks include:  The contractor will conduct on safety and environmental hygiene training for all workers at no cost to the employees;  The contractor will instruct workers in health and safety matters as required by law and good engineering practice and provide first aid facilities at work sites and the depots;  Temporary fencing around the work sites and contractor yards/depots shall be erected and advisory signage installed;  Work shall only be undertaken during daylight hours;  The community will not be permitted to enter work sites or the contractor’s depots/yards;  Workers shall be provided with appropriate personal protective equipment (PPE) such as safety boots, helmets, gloves, protective clothes, dust mask, goggles, and ear protection at no cost to the workers;  Provision of potable water supply in work locations;  Establishment of safety measures as required by law and by good engineering practice and provision of first aid facilities.  Adhere to relevant Industrial Safety, Health and Welfare Act or guidelines of GoPNG, International Finance Corporation and World Bank.

g. Social Impacts during Construction

52. The presence of a construction workforce can create social impacts such as risk of spread of communicable diseases (such as STIs and HIV) and create social disruption as a result of conflicts between workers from outside and local people. The workforce required for the pavement construction and associated works will be relatively small but wherever possible local people should be employed.

53. The contractor for Mt Hagen airport upgrade will be required to give qualified local residents priority in participation/employment during construction, creating livelihood opportunities as a mitigation measure for the effect described above. After the works have been completed, the contactors shall ensure that workers from outside of Mt Hagen return to their original place of residence to avoid impacts from informal migration. h. Noise Impacts and Air Quality

54. Air and noise pollution may be created by earthmoving, operation of heavy equipment and

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plant, transportation of materials to and from the site, and general works in the dry season generating dust and exhaust fumes such as Carbon Monoxide.

55. These impacts will be localized and temporary and can be effectively managed and mitigated with implementation of good engineering practice and measures included in the EMP. Mt Hagen airport is located in a busy area with noise coming from all moving vehicles in and out of town but away form away from sensitive receivers (schools and hospitals), although there is some residential areas adjacent on the Westside of the airport and the impacts can be reduced to negligible levels by:  Controlling speed of vehicles transporting materials to work areas;  Maintaining and regularly checking serviceability of vehicles;  Vehicles and equipment to be switched off (rather than idling) when not in use;  Works undertaken during daylight hours. No noisy activities undertaken at night or on public holidays; and  Vehicles transporting loose materials and stockpiles to be covered with canvas. Work site and vehicles to be watered-down if generating dust. i. Traffic Impacts

56. The need to transport materials to and from the site can cause traffic congestion if not managed properly. The contractor shall be required to prepare a traffic management plan as part of the EMP to demonstrate how construction traffic can be handled during the works in order to minimize impacts on transportation networks in the vicinity of the sites.

III. OPERATIONAL

57. At the completion of construction work, all materials will be removed or disposed of and the completed works will be in place. The only impact during the operational phase is the noise impacts which will be for the duration of approaching and landing aircrafts. j. Operation Stage Issues

58. Aircraft noise emissions, whilst considered only a minor issue at present, can increase with increasing flight frequency in the future operation of the airport, and need to be proactively managed. The problem can mostly be ameliorated by the careful location of ground running, and by the times these activities are undertaken. Occupational and residential exposure to aircraft noise is expected to increase over time; however, the noise impacts will only be for very short duration during aircraft take- off and landing only. It is not a concern for the contractor at this stage.

59. Aircraft ground operating noise will require management negotiated agreements between airlines, NAC and the local communities on times, frequency and locations of operations. Noise from aircraft in flight requires addressing in the context of the EMP such as plants locate plant s away from aircrafts parking/approach area. NAC must prepare, regularly update and promulgate noise exposure forecasts in accordance with the ANZECC 1992 or Australian Noise Exposure Forecast. This shall be NACs operational matter.

60. NAC, airlines and other aviation operators will introduce, under the Civil Aviation Regulations, a P a g e | 15 formal Safety Management System. For all airports, this will address both temporary safety risks during construction, and ongoing safety risks during normal operations. This system will also address management of environmental impacts of accidents and safety management processes.

D. ENVIRONMENTAL MANAGEMENT PLAN

61. Mitigation measures, environmental monitoring, and capacity development are required to minimize the environmental impacts in the design, construction and operational phases. The EMP provides the set of mitigation and management measures to be taken during project implementation to avoid, reduce, mitigate, or compensate for adverse environmental impacts (in that order of priority). It may include multiple management plans and actions. It includes the following key components (with the level of detail commensurate with the project’s impacts and risks). It will be necessary to update the EMP during the detailed engineering design phase. A condition of the proposed loan will be the adoption and enforcement of a CEMP to mitigate negative impacts associated with airport improvement activities. The EMP matrix developed to cover the expected impacts for the pavement strengthening and associated works at Mt Hagen Airport is provided in Table 3.

62. As the specific construction and operational activities are not yet fully defined for the project, the Environmental Management Plan (EMP) given here provides only a general outline of the measures and monitoring that will be undertaken for the project. It will be necessary to prepare a more detailed EMP during the detailed engineering design phase of the project. A condition of the proposed loan will be the adoption and enforcement of a Contractor’s Environmental Management Plan to mitigate negative impacts associated with airport re-development. An EMP developed to cover the expected impacts for the upgrading and rehabilitation of Mt. Hagen Airport is described here. a. Institutional Arrangements

63. The overall MFF program will be oversight by a steering committee. The executing agency of the MFF Program will be the NAC. The PIU will be responsible for daily management and implementation of the projects comprising Tranche 3.

64. The NAC, through the PIU, will be the main agency/entity responsible in coordinating the implementation of the Environmental Assessment and Review Framework (EARF). This will include, but not be limited to; - ensuring that the EARF procedures are strictly adhered to - preparation of environmental assessments will be carried out in a timely and adequate manner - environmental monitoring and institutional requirements will be fully met, while - meaningful public consultations are carried out satisfactorily.

65. NAC will submit the categorization environmental assessments, and monitoring reports to ADB for review in a timely manner. Table 4 provides the responsibilities and authorities of key organizations involved in the implementation of the EARF.

66. The PIU will be staffed with the national Environmental Officer (EO) and be supported by an International Environmental Specialist (IES). The IES will be part of the NAC during the Project with the primary tasks to: (i) strengthen the environmental management of the Project during detailed design, bidding process, contract process, construction, and implementation, (ii) provide induction training to contractors prior to preparation and submission of the CEMP for each subproject. Provide assistance to EO and PIU for review and clearance of the CEMPs; (iii)

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supervise/monitor compliance with the approved CEMP of each subproject; (iv) undertake the necessary institutional strengthening including on-the-job training for the EO of NAC-PIU by giving major tasks to the EO in all of these activities under IES supervision; (v) prepare reports on environmental safeguards activities as required; and (vi) update the EARF and supervise and guide the environmental assessment process for projects to be implemented in the Tranche 3 as part of the PFR. E. INFORMATION DISCLOSURE, CONSULTATION AND PARTICIPATION a. Introduction

67. The SPS and ADB’s Public Communications Policy (2011) require that relevant persons’, communities and stakeholders are consulted as part of project preparation and implementation so as to disclose appropriate project information publically. Consultations were undertaken as part of the environmental assessment and poverty and social assessment processes as well as for preparation of social safeguard documentation such as due diligence reports and resettlement plans. Consultations for Mt Hagen airport was conducted on Tuesday 11thof August2015 with the Western Highlands Provincial Administrator (PA) and his management team at the PA’s office. Table 2 displays the details for the consultations and number of participants (by male and female) for the meetings. The main issues raised and response to those issues or concerns follows this section Table 2: Consultations for Mt Hagen Airport Date Time Names Position

11/8/2015 2PM Joseph Neng Provincial Administrator, WHPG Paul Wak Executive Officer to the PA, WHPG

68. There are no village communities around the immediate proximity of the airport. Only settlements and residential areas. Hence, consultations were not considered beyond the airport perimeter area. There is also the possibility of potential issues such as locals’ intention to subcontract in the project, arising from individuals and communities outside of the airport area is consulted. The act of consultation will raise expectation and demands simply because it does not focus on certain group as in a village community. Similar arrangement will be carried out in the other provinces. b. Issues Raised and Responses

69. All the consultation was fruitful with unanimous support from all stakeholders consulted. Some of the issues raised relevant to the proposed development are as follows; . Mt Hagen airport is declared aerodrome land. NAC is the custodian of the land for aerodrome purpose. . All land matters concerning the airport upgrading project has been sorted out and there are no current outstanding issue. Clams of landownership shall be addressed through the Office of the Provincial Administrator whilst awaiting the formation of the Grievances Redress Mechanism established through a Working Committee with WHPA. . Grievances Redress Mechanism (GMR) for the Project will be represented through a working committee to be established within the Western Highlands Provincial Government & Administration. P a g e | 17

. The Provincial Government & Administration support is maintained for the project implementation. c. Information Disclosure

70. In disclosing the environmental documents to the public, (i) NAC through the PIU is responsible for ensuring that all environmental assessment documentation, including the environmental due diligence and monitoring reports, are properly and systematically kept as part of the project-specific record; (ii) all environmental documents are subject to public disclosure, and therefore may be made available to public, on request; (iii) for category A and B-sensitive subprojects, the documents will be publicly disclosed through ADB’s websites 120 days before a periodic financing request (PFR) is submitted to ADB, while the IEE will be reviewed by ADB prior to disclosure; and (iv) NAC-PIU will consult the public, particularly with project affected persons.

71. Disclosure of relevant environment safeguards documents will be in an appropriate form, manner, and language and at an accessible location to be understandable to the affected people and local stakeholders. During Tranche 1& 2, NAC established arrangements with provinces for coordination with a Project Coordination and Monitoring Committee (PCMC) and/or through the office of the Provincial Administrator (PA). Same procedure will apply for Tranche 3 projects.

72. A PCMC is set up within respective provincial administrations and this committee will oversee all concerns and grievances from the local communities and affected parties. Some Provincial Administration prefers a committee to be established with the Provincial Administration through the Office of the PA. For WHP, this is set up through the Provincial Administrator, supported by the Provincial Lands Officer, District and Local Level Government Officer and other resource and service departments such as Agriculture and Livestock and Customs. In the villages, councillors are the linkages between the Local Level Government and their Wards and they deliberate on issues. This forms part of the grievance redress mechanism (GRM) as explained in Section G.

73. Where indigenous people or a linguistic group requires translation assistance, CADIP will ensure that translators and translation of information materials will be available. This will be done in a manner to ensure full consultation with and disclosure to affected persons and communities regarding the requirements for land acquisition& Resettlement (LAR) and GRM. F. GRIEVANCE REDRESS MECHANISM

74. A GRM was established for CADIP during Tranche 1 and Tranche 2. The GRM to be implemented for Tranche 3 will reflect the steps and procedures already established but modify them to account for lessons learned. The GRM is a procedure for addressing environmental and social/land issues and concerns that may arise. During the course of the project it is possible that people may have concerns with the project’s environmental performance or social/land issues including the implementation of the project. Issues may occur during construction and again during operation. Any grievances dealing with construction and again during operation will need to be addressed quickly and transparently, and without retribution to the affected persons.

75. As noted in the previous section, NAC has an arrangement with provincial administrations through which grievances can be addressed. While NAC may have safety officers and operational managers at the Tranche 3 airport projects, they cannot be given the full responsibility of having to address grievances. They can however, only note and report to Provincial Administrations as partners in the provinces and/or through (i) an airport working committee, or (ii) the Provincial Coordinating & Monitoring Committee (PCMC). The airport working

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committee/PCMC is chaired by the provincial administrator and is made up of the deputy Provincial Administrators, Provincial Lands Advisor; Provincial Works Unit, relevant Intra- Governmental Officers and other government sectors represented in the province. Their role is to oversee project development in the provinces.

76. Where there are affected people for any airport development work, a grievance redress mechanism is in place through the airport working committee/PCMC and there is constant liaison between NAC–CADIP and the Provincial Administration, should the need arise to address any such land/social issues.

77. Papua New Guinea Land Disputes Settlement Act establishes procedures that have, as a first step, a mediation process whereby a designated mediator meets with the disputing parties to resolve grievances. CADIP will adopt this mediation process. This grievance redress process is established involving airport working committee/PCMC and appropriate community leaders and representatives. The NAC person on site such as a Safety Officer or the Operational Manager will be the first person to be contacted who will then liaise with airport working committee/PCMC to register, clarify and mediate potential issues.

78. The GRM will apply equally to the contractor who will be required to maintain a complaints registry recording complaints or issues raised and how they have been resolved. The registry will be subject to monitoring as part of Contractors’ Environmental Management Plan (CEMP) compliance checks.

79. Issues brought to the designated mediator within the community will be resolved within a timely manner. The three steps to resolve issues are as follows:  The mediator must meet with the disputing parties to resolve grievances within 2 – 14 days;  In the event of grievances over compensation claims that cannot be resolved through mediation at the local level, the airport working committee/PCMC and Provincial Lands Officer will hold the compensation amounts in trust and  Compensation will be paid in full upon final resolution of the case in the courts or other forum such as the Alternate Dispute Resolution process in accordance with the entitlements of the affected person. This must be completed within three months. P a g e | 19

Table 3: Design, Construction and Operational Environmental Management Plan

MITIGATION INSTITUTIONAL LO MITIGATING MEASURES SIGNIFICANCE OF EFFECTS LOCATION POSSIBLE EFFECTS COSTS RESPONSIBILITY CATION NOT SMALL MED MAJOR A. IMPACTS DUE TO AIRPORT LOCATION 1. Disruption of Surface Water a. Changes in hydrological regimes Airports and i) Impairment of aquatic ecology i) Dimension of drains X X NIL PIU/EO surrounding areas ii) Drainage disrupted ii) Diversion of stream X NIL PIU/EO iii) Drinking water source iii) Use of grassed areas for runoff NIL PIU/EO Downstream from i) Impairment of aquatic ecology i) Location of stockpiles on paved areas X X NIL PIU/EO b. Pollution as leaking from construction areas ii) Drinking water source ii) Removal of stockpiles after construction NIL PIU stockpiles and spoils iii) Re-vegetation after construction NIL 2. Disruption of groundwater Airports and i) Impairment of yields X NIL a. Changes in hydrological regimes PIU surrounding areas Downstream from i) Impairment of drinking water X NIL b. Pollution by spoils leachate PIU construction areas Surrounding areas I) Increase in vicinity of Airport X 3. Changes in nearby land values NAC/PIU and nearby villages 4. Loss of aesthetics Vicinity of Airports i) Loss of aesthetic value of land i) Landscaping and re-vegetation X USD10,000 Contraxtor/PIU B. IMPACTS DUE TO DESIGN 1. Slope erosion Airport vicinities I) Installation of silt traps on all drains X Contractor/PIU i) Siltation of rivers affecting hydrology and water quality USD5,000

2. Human and Downstream of i) Pollution of surface and i) Installation of oil and water separators, and X USD10,000 Contactors/PIU chemical waste Airport sites groundwater resources traps on drains ii) Development of safe storage areas and proper handling of hazardous and toxic materials

iii) Proper disposition of hazardous and toxic materials iv) Connection of Airport to main sewer line or construction of proper septic tanks of adequate capacity C. IMPACTS DURING CONSTRUCTION 1. Sediment runoff Downstream of 10 Damage to aquatic/marine i) Locate stockpiles in controlled areas X USD10,000 Airport sites and ecology and/or flooding issues ii) Sub-grade and sub-base material placed waterways quickly after removal of topsoil

iii) Planned construction work during dry season iv) Removal of spoils and construction debris 2. Safety of workers Airport sites i) Hazards to worker’s health and X Contractors/PU safety i) Construction methodology under control of Safety Officer and CSC USD3,000 ii) Approved Contractor’s Occupational Health and Safety Plan

3. Communicable i) Risks to worker’s health i) Contractor to source labourers and workers X NIL Contractors/PIU disease hazards Airport site and from the nearby villages adjacent villages and settlements

4. HIV and other Airport site and i) Risks to worker’s health X X NIL Contractors/PIU communicable adjacent villages ii) Risks to residents i) Contractor to source labourers and workers NIL Contractors/PIU diseases and settlements from the nearby villages

ii) Contractors to increase awareness of workers

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SIGNIFICANCE OF EFFECTS INSTITUTIONAL POTENTIAL MITIGATION L OC ATI ON P OSS IBLE EFFE CTS MITIGATING MEASURES RESPONSIBILIT IMPACTS NOT SMALL MED MAJOR COSTS Y 5. Slum creation Airport sites i) Slums forming in construction sites after i) Demolition of structures as part of X USD10,000 Contractors/PIU risks completion of works abandonment plan 6. Cultural Airport site and i) Social disruption i) Contractor to source labourers and workers X NIL Contractors/PIU differences adjacent villages from the nearby villages risk/social conflicts and settlements 7. Escape of Airports vicinities i) Health risks to residents of nearby communities i)Installation of oil and other traps on drains X NIL Contractors/PIU hazardous materials /villages ii) Development of safe storage areas and (cost included

proper handling of hazardous and toxic in materials item C. 2.) 8. Increase in levels Airport site and i) Health risks to workers and i) Locate Ancillary Facilities away from X Contractors/PIU of Total Suspended adjacent villages residents of nearby villages and residential and settlement areas USD15,000 Particulates (TSP), and settlements communities ii) Provide workers with Personal Protective SO2 and NO 2 Equipment (PPE) 9. Noise Pollution Airport site and i) Health risks to workers and i) Control vehicles speed in work areas and X NIL Contractors/PIU adjacent villages residents of nearby villages and sensitive locations (cost included and settlements communities ii) Locate Ancillary Facilities away from in

residential and settlement areas item C. 9.) iii) Provide workers with Personal Protective Equipment (PPE) 10. Water pollution Ancillary facilities Ii) Contamination of nearby water i) Proper solid waste management system to X Contractors/PIU from domestic courses and land be practiced in work areas USD5,000 sewage and wastes 11.Ground and Ancillary facilities i) Damage to surrounding areas i) Collect and recycle petroleum products X Contractors/PIU water contamination from improper handling of ii) Development of spill contingency plans USD15,000 from oil and grease materials iii) Construction of bund walls and drainage systems around fuel storage areas 12.Disruption of Nearby i) Disruption of services I) Investigate limits to required services and X NIL Contractors/PIU utilities settlements minimize disruptions 13.Increase in traffic Surrounding areas i) Traffic congestion in major i) Prepare traffic management plans X NIL Contractors/PIU

roads 14. Demobilization Ancillary facilities i) Solid waste generation i) Preparation of abandonment plan X Contractors/PIU ii) Demolition of temporary offices and Contractor’s Depot Area USD10,000 iii) Dismantling of ancillary facilities iv) Re-vegetation of exposed areas v) Proper disposition of construction debris D. IMPACTS DURING OPERATION AND MAINTENANCE 1. Noise nuisances Nearby i) Noise pollution i) Establishment of buffers between airport X NAC/PIU/ CEPA settlements and nearby settlement areas ii) Preparation of operational procedures by USD15,000 Airport Operator based on ANZECC 1992 or Australian Noise Exposure Forecast (ANEF). 3. Water pollution Downstream of i) Contamination of surface and i) Proper handling, storage and disposal of X NIL PIU/ CEPA Airports groundwater resources petroleum, hazardous and toxic materials ii) Development of spill contingency plans 4. Air pollution Airport vicinities i) Health hazards and nuisances i) Regular monitoring of air quality in the X PIU/CEPA USD15,000 to nearby villages and settlements vicinity of the airports and sensitive receptors 5. Increased traffic Airport vicinities i) Traffic congestion in major i) Preparation of Traffic Management Plans NIL PIU/Local and roads Government Units major roads into the Airports PIU – Project Implementation Unit; DC –Design Consultants; CEPA –Department of Environment and Conservation USD000,000 – Cost quoted are estimates and will be finalized upon completion of Detailed Design (to be included in Bill of Quantities -BOQ) P a g e | 21

Table 4: Institutional Responsibilities for Implementing Safeguards

Organization Implementation Responsibilities NAC –Project Prior to the submission of the Periodic Financing Request (PFR) for subsequent Implementation projects the NAC will: Unit (PIU)  Prepare the environmental assessments (IEE), including an Environmental Environment Management Plan (EMP) for each subproject and submit to ADB and public Officer (EO) disclosure. and  Ensure that adequate public consultation has been undertaken with affected groups International and local stakeholders review the environmental assessments and submit the IEE Environmental and/or EIA documents as required, to ADB. Specialist (IES)  Submit the necessary environmental assessments to ADB in sufficient time to permit the necessary disclosure by ADB.  Undertake the necessary actions to ensure environmental compliance with the GoPNG’s and ADB’s requirements; NAC –Project Prior to the commencement of civil works the NAC will: Implementation  Submit any of the environmental assessments required for regulatory approval of the Unit (PIU) CEPA and obtain approval, e.g., environmental clearance, environmental permits. Environment  Ensure that all regulatory clearances for the subproject that are obtained from the Officer (EO) relevant Government authorities are submitted promptly to ADB. and  Ensure that the required mitigation measures during construction, the IEE and the International EMP are included in the bidding document of the subproject and that all bidding Environmental contractors have access to the environmental assessments and EMP. Specialist (IES)  Ensure that the EMP and all required mitigation measures during construction, including conditions stipulated in the CEPA's clearance or environmental permit, are included in all the contracts signed by the Contractor(s) with requirements to update the EMP in response to any unexpected impacts and that all selected contractors have agreed the to implement the full suite of environmental mitigation measures prescribed in the EMP.  Receive environmental safeguard clearance on subproject(s).  Provide EMP induction training to contractors;  Review and clear the contractors CEMP for each subproject NAC –Project During the implementation of civil works the NAC will: Implementation  Ensure that a contractor’s environmental management plan (CEMP) including all Unit (PIU) proposed mitigation measures and monitoring programs and relevant provisions of Environment the environmental assessments is updated as required, and is properly implemented Officer (EO) by the contractors. and  Monitor the implementation of CEMP and present the monitoring reports to ADB. International  In case unpredicted environmental impacts occur during project implementation, Environmental inform ADB, review the CEMP with the contractor, and implement alternative Specialist (IES) environmental mitigation program.  In case a subproject changes in scope, inform ADB and reconfirm the environmental classification, determine whether a supplementary IEE or EIA study is required, and carry out the study including the requirement for information disclosure and public consultation;  Submit the requisite reports on progress with social and environmental compliance and implementing the CEMP as required by the CEPA and ADB.  Ensure that ADB be given access to undertake environmental due diligence for all subprojects. However, the NAC will have the main responsibility for undertaking environmental due diligence and monitoring of all the subprojects. The due diligence report as well as monitoring reports on CEMP implementation, as required, will be systematically prepared and be made available to the public, if requested

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ADB During the implementation of Tranche 3, ADB will:  Regular reviews and approval of subproject IEEs.  Provide technical guidance to the NAC as needed.  Reviewing regular monitoring reports and officially disclosing the summary environmental assessments for selected subprojects (Category A and B sensitive) on the ADB website.  Review environmental assessment reports as a basis for subproject approvals. Disclose assessments of category A subprojects, and category “B sensitive” subprojects for 120 days via ADB websites (as required) before a PFR is submitted to ADB.  Monitor the EMP implementation, as required, and conduct due diligence as part of MFF reviews.  Provide assistance to NAC, if required, in carrying out its responsibilities and for building capacity for safeguard compliance.  Ensure that the NAC will conduct the required consultations with project affected groups and local NGOs in PNG, and that the NAC as project sponsor disclose relevant environment information on the project’s environmental issues in an appropriate form, manner, and language(s) accessible to those being consulted. Such information disclosure with affected people will be guided by the Public Communication Policy (2011). Contractors  Based on site specific conditions, prepare Contractor’s Environmental Management Plan (CEMP) for each site  Implement and report on CEMP as part of pavement strengthening and rehabilitation activities  Prepare monthly CEMP report as part of progress reports and submit to PIU. The report will also include the Monthly Accident Report and measures undertaken to address any non-compliance issues identified by the PIU (or CEPA). CEPA  Administration and enforcement of the Environment Act 2000 and its regulations as it pertains to the project  Identify whether EPs (with or without conditions) required for any identified site  Review IEE and other documentation required  Administer Contractor Waste Disposal permit applications and performance

80. The IES will be engaged intermittently for eight person-months during the Tranche 3 also in Tranche 4 period and will be assigned on an intermittent basis to undertake training and capacity building for environmental management in NAC and to guide the EO of PIU in preparing assessments, monitoring and reporting. The IES and EO will jointly be responsible for overall environmental management of Tranche 3.

B. TASK OF IMPLEMENTING AGENCIES

B1. NAC – PIU

81. Table 4 sets out the Institutions responsible for implementing Safeguards Requirements in CADIP Tranche 3. NAC being the Executing Agency (EA) has the primary role of ensuring the Safeguard Measures and Issues are adequately covered. The Environment Officer (EO) is the focal person in providing feedback to environmental and social issues raised during the construction and operational phase of the project. He will be assisted by the International Environmental Specialist on an intermittent basis. On the ground in Momote, NAC’s Safety Officer will oversee daily operations of activities and can notify the EO of serious environmental noncompliance and the EO will visit to remedy the complaint.

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B2. ADB

82. ADB through the Papua New Guinea Resident Mission will provide guidance as to the submission of periodic monitoring reports from NAC that would meet ADB’s standards and guidelines before these are uploaded onto ADB website.

83. Scheduled missions from PNRM and PARD or other departments in ADB will oversee the monitoring and progress of the project as per loan covenant.

B3. Contractor

84. The Contractor is to submit a Contractors Environmental Management Plan (CEMP) for approval by NAC and ADB on the mitigation measures that it will take in the implantation of the project. This CEMP will be approved and used in the submission of regular reports to NAC who will submit to ADB for perusal and approval.

B4. CEPA

85. CEPA as the overseers of the Environmental Act 2000 will be updated on the submission of this IEE and its coherence with similar categories which is an Environmental Inception Report. This will be noted and assessed for compliance and under new fee arrangements the NAC may be liable for an assessment fee leading to a permit for the sub project.

G. MONITORING AND REPORTING

81. Environmental monitoring will consist of regular systematic checking that the environmental management measures are being implemented effectively during each stage of the sub-project i.e. pre-construction and design, construction and operation.

82. Monitoring during construction will be the responsibility of the contractor and NAC (carried out by EO) and IES within the PIU. Monitoring will relate to compliance with construction contracts (including EMP measures and provisions), the state and health of the nearby environmental resources, and the effectiveness of mitigation measures and complaints. Monthly progress reporting will include a summary of this monitoring submitted to the NAC on a regular basis (at least quarterly) and to ADB semi-annually.

83. The estimated cost for the environmental monitoring plan is $34,000. The costs of the environmental mitigation plan will be part of the construction costs. 84. Table 4 presents the key activities for environmental monitoring that will be incorporated into the EMP whilst Table 5 states the roles and responsibilities for environmental monitoring. Table 6 shows the specifics of the environmental parameters to be monitored and the frequency of monitoring to be undertaken by the contractor using appropriate equipments to be procured by the contractor or through specialised firms. Table 7 shows the summary of the environmental management costs including implementation and monitoring costs.

85. The PIU will be responsible for reporting progress of Tranche 3 to NAC and ADB.

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Monitoring of each contractor will cover monthly progress and CEMP implementation and compliance (including general good practice). A section on safeguards activities and compliance with the CEMP for each subproject will also be included in quarterly progress reports (QPR) prepared for NAC and ADB.

86. The reporting will be as per the following schedule:  A report at the end of detailed design incorporating a section prepared by the IES and EO on how detailed design has reflected environmental impact avoidance or mitigation and climate resilience;  A monthly report prepared during construction by each contractor reported on progress and CEMP activities, issues and corrective actions,  A report prepared every 3 months (the QPR) prepared by the PIU. The QPR will include a section on safeguards activities and CEMP compliance for each subproject and will summarize the monthly reports submitted by the contractors; and  A semi-annual safeguards monitoring report (prepared every 6 months) by the IES and EO.

87. The Project completion report will include a section on safeguards implementation and make recommendations as required for modifications to the processes set out in the EARF and EMP procedures based on the review undertaken at the end of the project The safeguards section will be prepared by the IES and EO three months prior to the end of Tranche 3.

P a g e | 25 Table 5. Environmental Monitoring Plan

PARAQMETRES TO BE PHASE/IMPACT MITIGATING MEASURE MONITORED STANDARDS LOCATIONS1 DURATION FREQUENCY IMPLEMENT SUPERVISE PRE-CONSTRUCTION PHASE 1. Erosion, i) Drainage design Capacity sufficient for 80% of 30 Momote Airport Detailed Once at Design PIU siltation and ii) Use of gently sloping grass i) Drains are of sufficient quantity year maximum Design Detailed Contractor flooding of surfaces and size to accommodate Phase Design Phase waterways iii) Silt traps in all drains additional volume ii) Silt traps are of sufficient quantity and size to protect surrounding areas from siltation CONSTRUCTION PHASE 1. Sediment runoff i) Inspection of stockpiles i-iii) Stockpiles and earthworks are Momote Airport Construction Monthly Contractor/ CEPA/NAC i) Stockpiles in controlled areas ii) Construction schedule for managed to best practices- period PIU/CSC ii) Sub-grade and sub-base earthworks Defined in Final EMP material placed immediately after iii) Contents of sediments traps iv) Water Quality Standards of removal of topsoil iv) Turbidity of streams CEPA iii) Planned construction during the dry period iv) Removal of spoils and construction debris v) Provision of sediment traps

2. Water Pollution i) Inspection of storage of i-ii) Best practices – Defined in Momote Airport Construction Monthly Contractor/ CEPA/NAC i) Installation of oil and other traps hazardous and toxic wastes areas final EMP Phase PIU/CSC on drains ii) Inspection of oil traps in drains iii) Water Quality Standards of ii) Proper handling and storage of iii) Pollution load of downstream CEPA hazardous and toxic materials water courses iii) Locate ancillary facilities away from settlement areas

3. Health and i) Construction methodology and i) Site inspection i) Compliance with method of Momote Airport Construction Monthly Contractor/ CEPA/NAC safety of workers work plan Working Plan and OH & S Plan Phase PIU/CSC ii) Contractor’s approved OH &S Plan 4. Demobilization i-v) Inspection of operations and i-v) Best practices – Defined in Momote Airport End of Once Contractor/ CEPA/NAC i) Preparation of abandonment site Final EMP construction PIU/CSC plan phase ii) Demolition of temporary offices and Contractor’s Depot Area iii) Dismantling of ancillary facilities iv) Re-vegetation of exposed areas v) Proper disposition of construction debris

OPERATION AND MAINTENANCE PHASE 1. Noise i) Ambient Noise i) ANZECC 1992 or Australian Momote Airport Operations Semi-Annual PIU/NAC CEPA i) Establishment of buffers disturbance Noise Exposure Forecast (ANEF) between airports and nearby settlements ii) Preparation of operational procedures by Airport Operator 2. Water pollution i) Inspection of operations and site i-ii) Water Quality Standards of Momote Airport Operations Semi-Annual PIU/NAC CEPA i) Proper sanitation and sewerage ii) Storage for hazardous and toxic PNG-CEPA systems (construction of septic materials tanks or connection to main sewer line) installed ii) Spill contingency plan 3. Air pollution i) Proper maintenance of vehicles i) Total suspended particulates i) CEPA Air Quality standards Momote Airport Operations Semi-Annual PIU/NAC CEPA ii) Re-vegetation of exposed areas PIU – Project Implementation Unit; CSC – Construction Supervision Consultants; NAC – Civil Aviation Authority; CEPA –Department of Environment and Conservation

Specific sampling stations will be defined during the conduct of the baseline survey before commencement of works

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Table 6: Roles and Responsibilities for Environmental Monitoring

Implementation Implementation No Environmental Monitoring Tasks Responsibility Schedule 1 Design Phase Disclosure of subprojects to CEPA and 1.1 NAC-PIU, EO Prior to construction monitor permitting. Audit project bidding documents to NAC-PIU (by ensure IEE and EMP included in bids Prior to issue of bidding 1.2 IES and environmental criteria are included documents. and EO) in evaluation. 2 Construction Phase First orientation/briefing 1 month Orientation and briefing of contractor’s NAC-PIU (by prior to commencement of each 2.1 management, site agents with regards to IES contract and refresher all IEE and EMP requirements. and EO) orientation/briefing at least yearly during construction period. Monitor the performance of environmental training by contractor and NAC-PIU (by Ongoing, prior to and during 2.2 briefings and of the environmental IES implementation of works and awareness of Contractors staff, tool box and EO) operation. talks and & refresher courses. Regular (monthly) monitoring and NAC-PIU (by reporting(quarterly) of contractor’s Continuous throughout 2.3 IES compliance with statutory environmental construction period. and EO) requirements Regular (monthly) monitoring and reporting (quarterly) of contractor’s NAC-PIU (by Continuous throughout 2.4 compliance with contractual IES construction period. environmental mitigation measures and EO) including EMP. Regular (monthly) monitoring and NAC-PIU (by reporting(quarterly) of complaints and Continuous throughout 2.5 IES responses or environmental mitigation construction period. and EO) measures Monitor adjustments to the EMP for NAC-PIU (by During all phases of the 2.6 unexpected impacts and the thorough IES Subprojects implementation of detailed EMP. and EO) Commissioning phase monitoring of NAC-PIU (by facilities versus environmental 2.7 IES At commissioning. contractual performance criteria. Check and EO) EMP compliance. 3 Operation and Maintenance Phase Post construction monitoring of Semi-annual up to 3 years after air/noise/water quality at any sites where NAC-PIU (by completion of construction or until 3.2 complaints about water quality from EO) air, noise and water quality meets works were justified in construction baseline conditions. phase.

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H. CONCLUSION AND RECOMMENDATION

88. The project will cause short-term environmental disturbances associated with construction activity that will be mitigated by operational procedures during construction, within the framework of a contractor’s approved EMP in line with the EMP stated herein (Table 3 above) to be supervised by the PIU.

89. Mitigation measures to prevent or minimize unnecessary impacts are also provided. Potential impacts and risks during construction were also characterized as short term and unnecessary impacts will be minimized through good construction management and housekeeping practices. An EMP containing impact mitigation and monitoring plan to mitigate the potential impacts has been prepared to ensure that the project will be implemented in an environmentally sound and sustainable manner.

90. Positive impacts to the local economy will accrue through new income earning opportunities for locals generated by demand for labour, women participation to semi- skilled during construction; and airport staffing and management arrangements, and through the creation of new non-aeronautical business opportunities in the terminal facilities and surrounding areas.

91. This IEE concludes that in the context of appropriate mitigating strategies described above, and the positive environmental benefits to flow from the Project, environmental impacts can be managed within acceptable levels. There are no significant environmental impacts needing further detailed study or EIA. All potential and associated impacts can be addressed through implementation of the mitigation measures as proposed in the IEE. Provisions will be made in the Project Budget to cover the environmental mitigation and monitoring costs.

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APPENDIX 1: ENVIRONMENTAL MONITORING PLAN

Table 7: Matrix of EMP for Mt Hagen Airport

EQUIPMENT COST OF ENVIRONMENT PLANNED INDICATOR REQUIREMENTS MONITORING AL MONITORING FREQUENCY AREA OF PARAMETER AND (MONTHLY PARAMETER MONITORING COST (US$) COST IN US$) Monthly During Construction Sulphur Period/Semi-Annual dioxide During 1 Unit - PM10 Operation Period Portable US500.00 Nitrogen US$2500 (includes dioxide Monthly During 1 Unit - 3 Gas transportation Construction Analyser and lab Period/Semi-Annual Portable analysis) During US$2000.00 Operation Period Air and 2 stations Noise Monthly During Total Construction Suspended Period/Semi-Annual Particulate During Operation Period 1 unit – Noise Monthly During Metre US$400.00 Construction US$500.00 ((includes Noise Period/Semi-Annual transportation During and lab Operation Period analysis) Temperatur e pH Biological Oxygen Demand Monthly During 1 Unit Portable US600.00 Construction Water (includes Water (BOD) Period/Semi-Annual 1 Station Quality transportation Quality Dissolved Oxygen During Analyser and lab (DO) Operation Period US$2000.00 analysis) Oil and Grease Total Coliform Count Total Suspended Sediments (TSS) Total Dissolved Solids (TDS) P a g e | 29

Table 8: Summary of Costs for the Proposed Works

PHASE COST1 (US$)

Impacts Due to Pre Construction 30,000

Impacts During Construction 98,000.00 Sub-Total 128,000.00 MONTHLY MONITORING 2 PARAMETER EQUIPMENT (US$) COST (US$) (US$) Air and Noise One set of equipment for EO 900.00 21,200.00

Water Quality One set of equipment for EO 600.00 12,800.00

SUB-TOTAL 1,500.00 34,000.00

GRAND TOTAL 162,000.00

1Costs quoted are estimates and will be finalized upon completion of Detailed Design Phase (to be included in Bill of Quantities). Costs will be incorporated in total construction cost. 2Cost inclusive of equipment, transport, and laboratory analysis for Baseline survey before commencement of works, 18 months of construction period and 3 years operation phase (at six month interval).

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APPENDIX 2: PHOTOGRAPHS

Photo 1: WESTERN END OF THE RUNWAY PAVMENT THAT WILL BE UPGRADED

Photo 2. TREE TO BE CUT DOWN FOR AIRCRAFT APPROACH PATH