Initial Environmental Examination: Bhutan, Solar Home Lighting

Environmental Assessment Report

Initial Environmental Examination Project Number: 42252 August 2010

BHU: Rural Renewable Energy Development Project

Prepared by the Department of Energy, Government of Bhutan for the Asian Development Bank (ADB).

The 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.

INITIAL ENVIRONMENTAL EXAMINATION FOR SOLAR HOME LIGHTING SYSTEM PROJECT IN BHUTAN

Table of Contents

ABBREVIATIONS ...... v 0.0 Executive Summary - Initial Environmental Examination (IEE) ...... viii 0.1 Need for the Project ...... viii 0.2 Basic Objective ...... viii 0.3 Location of the Project ...... viii 0.4 Initial Environmental Examination (IEE)...... viii 0.5 Category of Project ...... ix 0.6 Brief Details of Project...... ix 0.7 Implementing and Executive Agencies ...... ix 0.8 Policy, Legal and Administrative Frame Work...... ix 0.9 Description of Environment ...... x 0.9.1 Physical Environment ...... x 0.9.2 Ecological Resources ...... xii 0.9.3 Economic Development ...... xii 0.9.4 Social and Cultural Resources...... xiv 0.10 Environmental Impacts and Mitigation Measures...... xiv 0.11 Analyses of Alternatives ...... xv 0.12 Public Consultations and Information Disclosure ...... xvii 0.13 Grievance Redress Mechanisms ...... xx 0.14 Environmental Management Plan (EMP) ...... xx 0.14.1 Environmental Management Plan (EMP) Cost ...... xx 0.15 Findings, Recommendations, and Conclusions...... xxi 0.15.1 Findings ...... xxi 0.15.3 Conclusion ...... xxii 1.1 Background...... 1 1.2 Initial Environmental Examination (IEE)...... 1 1.3 Structure of IEE Report ...... 2 1.4 Acknowledgements...... 2 2.0 Policy, Legal & Administrative Framework ...... 3 2.1 Policies relevant to Biogas Component...... 3 2.2 Electrification Act 2001...... 3 2.3 Forest and Nature Conservation Act (FNCA) 1995:...... 3 2.4 Forest and Nature Conservation Rules (FNCR) 2000:...... 3 2.5 Protected Areas ...... 4 2.6 Land Act 1979 (Revised 2007)...... 4

2.7 RGOB Decentralization Policy 2002 ...... 5 2.8 RGOB Environmental Clearance Procedures ...... 5 2.8.1 Environmental Classification...... 5 2.8.2 Preparation of EC Application...... 6 2.9 Conclusion ...... 6 3.0 Description of the Project ...... 7 3.1 Need for the Project ...... 7 3.2 Basic Objective ...... 7 3.3 Location of Project ...... 7 3.4 Details of Solar Home Lighting System...... 7 3.4.1 Proposed Solar Home Lighting System Specifications ...... 7 3.4.2 Photo Voltaic (PV) Panel...... 8 3.4.3 Technical Details of SHLS ...... 9 3.4.4 PV Technical Specifications...... 9 3.4.5 Charge Controller...... 10 3.4.6 Rechargeable Deep Cycle Battery...... 11 3.4.7 LED Lamp with Matching Holder...... 12 3.5 Location of Project ...... 13 3.6 Cost of Project ...... 13 3.7 Implementing and Executive Agencies ...... 14 4.0 Description of the Environment ...... 15 4.1 Physical Resources...... 15 4.1.1 Location ...... 15 4.1.2 Topography, Geology and Soils...... 15 4.1.3 Climate...... 16 4.1.4 Air Quality ...... 16 4.1.5 Surface Water Sources and Quality...... 16 4.1.6 Groundwater Sources and Quality...... 17 4.1.7 Noise Levels in Project Area...... 17 4.1.8 Aquatic Environment...... 18 4.2 Ecological Resources...... 18 4.2.1 Protected Areas ...... 18 4.2.2 Rare or Endangered Species...... 20 4.2.3 Biodiversity ...... 21 4.2.4 Wildlife ...... 22 4.3 Economic Development Resources ...... 25 4.3.1 Land use, Industry and agriculture...... 25 4.3.2 Administrative Infrastructure and Community Facilities ...... 26 4.3.3 Transportation...... 27 4.3.4 Electricity and Communication...... 27

4.3.5 Tourism...... 27 4.4 Social and Cultural Resources...... 28 4.4.1 Demography ...... 28 4.4.2 History and Cultural ...... 28 5.0 Anticipated Environmental Impacts and Mitigating Measures ...... 30 5.1 Environmentally Insignificant Issues ...... 30 5.2 Environmentally Significant Issues /Valued Environmental Component (VEC) 30 5.3 Topography and Soil- Environmental Impacts and Mitigations ...... 31 5.3.1 Impacts ...... 31 5.3.2 Mitigation Measures...... 31 5.4 Human Health ...... 32 5.4.1 Impacts ...... 32 5.4.2 Mitigation Measures...... 32 5.5 Biodiversity...... 32 5.5.1 Impacts ...... 32 5.5.2 Mitigation Measures...... 33 5.6 Positive Social and Environmental Benefits ...... 33 5.7 Conclusion ...... 33 6.0 Analysis of Alternatives...... 34 6.1 No Project Scenario ...... 34 6.2 Project Scenario...... 34 6.3 To provide other form of Energy such as small Hydropower Projects...... 34 6.4 Comparison of Alternatives ...... 34 6.5 Conclusion ...... 36 7.0 Information Disclosure and Consultations...... 37 7.1 Introduction ...... 37 7.2 Objectives ...... 37 7.3 Methodology Adopted for Public Consultations...... 37 7.3.1 Stages and Levels of Consultation...... 37 7.3.2 Contents...... 38 7.4 Location Wise Summary of Consultations...... 38 7.4.1 Public Consultation at Tongtsho village-Tseza Geog, Dagana Dzongkhag on 19th January 2010...... 39 7.4.2 Public Consultation at Doban Geog, Sarpang Dzongkhag on 12th January 2010 ...... 39 7.4.3 Public Consultation at Thasa Village, Lajab Geog, Dagana Dzongkhag 23rd January 2010 ...... 39 7.4.4 Public Consultation at Upper Majgaon village, Patalay Geog, Tsirang Dzongkhag on 28th January 2010 ...... 39 7.4.5 Public Consultation at Village Chota Tsirang/Sisty and Daragaon, Geog

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Sengye, Sarpang Dzongkhag on 15th January 2010...... 39 7.5 Addressal of Public Concerns in the Project Design ...... 40 7.6 Conclusion ...... 41 8.0 Grievance Redress Mechanism ...... 42 9.0 Institutional Requirements, Environmental Management and Monitoring Plan 43 9.1 Institutional Requirements...... 43 9.2 Environment Monitoring Plan ...... 43 9.3 Environmental Management Plan (EMP) ...... 45 9.4 Environmental Management Plan Cost...... 50 10.0 Findings, Recommendation and Conclusion ...... 51 10.1 Findings ...... 51 10.2 Recommendations ...... 51 10.3 Conclusion ...... 51

LIST OF TABLES

Table 1: No. of Targeted Households for Off-Grid Solar Home Lighting Systems...... 7 Table 2: Specifications of Solar Home Lighting System ...... 8 Table 3: Endangered or Vulnerable Species Expected in Protected Areas...... 21 Table 4: Avifauna of Project Areas (Based on Discussion with Forest officials and Published Sources)...... 22 Table 5: Species listed in the Forest and Nature Conservation Act...... 24 Table 6: Comparison of Alternatives...... 35 Table 7: Addressal of General Issues and Concerns under the Project ...... 40 Table 8: Environmental Monitoring Plan ...... 44 Table 9: Environmental Management Plan (EMP)...... 46

LIST OF FIGURES

Figure 1: Proposed Dzongkhags for SHLS Installation...... 13 Figure 2: Major Rivers of Bhutan ...... 17 Figure 3: National Protected Areas and Biological Corridors of Bhutan ...... 18

INITIAL ENVIRONMENTAL EXAMINATION FOR BHUTAN BIOGAS PILOT PROJECT ABBREVIATIONS

ADB: Asian Development Bank AH: Ampere Hour AM: Amplitude Modulation BAP: Biodiversity Action Plan BHU: Basic Health Unit BMNP Blue Mountain National Park BPC: Bhutan Power Corporation Limited BWS: Bumdeling Wildlife Sanctuary C20/C10: Capacity at 20 Hours/Capacity at 10 Hours DCSD: Distribution and Customer Services Department DFO: Divisional Forest Officer DOD: Maximum Depth of Discharge DOF: Department of Forest DOE: Department of Energy DYT: Dzongkhag Yargay Tshogdue EC: Environmental Clearance EIA: Environmental Impact Assessment FNCA: Forest and Nature Conservation Act FNCR: Forest and Nature Conservation Rules FYP: Five Year Plan HH: Household HSS: Higher Secondary School ICDP: Integrated Conservation and Development Project IEE Initial Environmental Examination IEC6125:2005: International Quality Certificate for Solar Panel JDNP: Jigme Dorji National Park JSWNP: Jigme Singye Wangchuck National Park KWS: Khaling Wildlife Sanctuary LED: Light Emitting Diode LSS: Lower Secondary School MOA Ministry of Agriculture MOEA Ministry of Economic Affairs MHz: Mega Hertz MP: Member of Parliament MSS: Middle Secondary School MSWS: Merak Sakteng Wildlife Sanctuary

MTI: Ministry of Trade and Industry mA: Milli Ampere mV: Milli Volt NCD: Nature Conservation Division NEC: National Environment Commission NES: National Environment Strategy NOC: No Objection Certificate NTFP: Non-Timber Forest Product NWFP Non-Wood Forest Product O & M: Operation and Maintenance ORC: Out Reach Clinic PA: Protected Area PM: Project Manager/Park Manager PPTA: Project Preparatory Technical Assistance PS: Primary School PWS: Phibsoo Wildlife Sanctuary PV: Photo Voltaic Panel PVRS: Photo Voltaic Recommended Specifications RE: Rural Electrification RED Renewable Energy Department of Department of Energy ( MOEA) RGOB: Royal Government of Bhutan RMNP: Royal Manas National Park RNR: Renewable Natural Resources RoW: Right of Way RSPN: Royal Society for the Protection of Nature SW: Short Wave TNP: Thrumshingla National Park TSNR: Toorsa Strict Nature Reserve WCP: Wangchuck Centennial Park WP/Wpk: Watt Peak WLED: White Light Emitting Diode

WEIGHTS AND MEASURES

C : degree Celsius dB(A) : decibels measured in the audible noise bands Ha : Hectare km : Kilometre m : Meter m3 : cubic meter

vi kg : Kilogram mg/l : milligram per liter T : Ton TPA : Tonnes per annum

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Executive Summary

0.0 Executive Summary - Initial Environmental Examination (IEE)

0.1 Need for the Project

1. Bhutan is a mountainous country and rural electrification through grid is not possible at many rural habitations due to techno-economic reasons. RGOB has set a target of ‘Electricity for All’ by 2013. In order to achieve the set target installation of solar home lighting system (SHLS), in remote rural house hold where grid extension is not possible, has been found to be a feasible option. The project will provide electrification in poor rural households.

0.2 Basic Objective

2. The objective of project is to provide electrification in rural households where extension of grid is not possible on techno-economic reasons. The SHLS project aims to provide rural electrification in 1850 households spread over 10 Dzongkhag of the country. The targeted Dzongkhags are Chukha, Dagana, Gasa, Haa, Paro, Punakha, Samtse, Sarpang, Trongsa, and Wangdue Phodrang.

0.3 Location of the Project

3. The SHLS project will be spread over 10 Dzongkhag of the country. Dzongkhag wise targeted number of household are as given below:

S. No. Name of Dzongkhag Targeted Number of House Hold 1 Chukha 563 2 Dagana 231 3 Gasa 200 4 Haa 170 5 Paro 44 6 Punakha 16 7 Samtse 177 8 Sarpang 177 9 Trongsa 12 10 Wangduephodrang 260 Total 1850

0.4 Initial Environmental Examination (IEE)

4. The IEE has been included in project preparation to streamline environmental issues in SHLS project implementation. The IEE report has been prepared as per ADB Safeguard Policy 2009.The IEE preparation led to identification

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potential environmental impacts during construction and operation phases and this led to preparation of Environmental Management Plan (EMP) to mitigate the adverse impacts.

0.5 Category of Project

5. The SHLS project has been categorised as Category –‘B ‘as there are no significant impacts during installation and operation phases.

0.6 Brief Details of Project

6. The specifications for the proposed solar home lighting systems to be installed take into account the transport costs to the remote mountainous areas and the improved system reliability to reduce the maintenance requirements. Following shows the system components and specifications:

S. No. Component Specifications 1 Solar Panel 80 WP 2 Charge Controller 10 Amps 3 Lumanaries 3 Watt WLED 4 Battery 80 AH@ c20, <32 kg 5 Wires As per locally available 6 Accessories As per locally available

7. The Department of Energy has undertaken a detailed analysis of SHLS performance and components in Bhutan. The project design accounts for weather conditions, Bhutanese solar insolation resources, cable losses, pane degradation factors, battery and charge controller efficiencies and aging of components over time. In this sense, the design is regarded as conservative, but will not disappoint in performance, and this is an important consideration when providing services to rural households where service and support is difficult. Bhutan offers 4.25 kW/(m2day) as a solar insolation. This has been considered in the project design.

0.7 Implementing and Executive Agencies

8. The Department of Energy (Ministry of Economic Affairs) will be the Executing Agency (EA), and Department of Energy’s (DOE) Renewable Energy Division (RED) in MOEA will be the Implementing Agency (IA). RED has managed the implementation of Bhutan Solar Electrification Program since 2006 and demonstrated good performance for project management of solar home lighting electrification project.

0.8 Policy, Legal and Administrative Frame Work

9. In Bhutan environmental protection has been entrusted to NEC. The Royal

Government of Bhutan has enacted a number of acts and rules such as Forest and Nature Conservation Act 1995, Forest and Nature Conservation Rules2000, etc. The SHLS project does not require environmental clearance as this has not been mentioned in the list of industries/activities requiring environmental clearance. But on advice of NEC an application for environmental clearance has been submitted to NEC. The environmental clearance has been obtained.

0.9 Description of Environment

0.9.1 Physical Environment

10. The determination of baseline conditions is a pre requirement in the preparation of IEE reports. The prevailing baseline status in project area have been described below:

(a) Topography, Geology and Soil

11. All ten Dzongkhags where SHLS are planned to installed lie in central, northern and western part of the country with elevations ranging from 200m to 5600m above sea level. Parts of Haa have highest elevation of 5600 m. In these higher zones installation is not likely as there are no habitations

12. All the ten Dzongkhags fall within the Lesser Himalayan formation. This includes a wide range of sedimentary and low grade metamorphic rocks, including argillites and metargillites, sandstones and quartzites, limestone, dolomite and gypsum. Gneisses under lie more than 70% of the country right down almost to the Indian border. The shumar formation and Manas formation also exist in some of Dzongkhags such as Sarpang. The Shumar formation comprises of alternating sequence of quartzite.

13. The soil types found in all 10 Dzonggkhags range from sandy, clay, loam to sandy loam and clayey loam. Generally the soil in the alluvial low land river valleys is quite fertile and crops grow well as soil moisture is also adequate in the foothills. At lower altitudes, many of the slopes are covered with colluviums, a mixture of soil and stones deposited by slow creep and many small landslips and slumps. At slopes soils are shallow.

(b) Climate

14. The climate in project area varies according to the altitude. The higher altitude experience cool temperate climate with warm humid summers and chilly winters with snowfall in some parts in winter, while in the lower elevation areas climate is sub-tropical to temperate. The Wangduephodrang Dzongkhag is known as windy due to the strong winds that blow across the valley each day.

15. The relative humidity in project area ranges 63% to 90%, with an average of about 70% in the past four years. The least humid period is during pre monsoon (March-May). The average mean temperature for the warmest

months of June and July is about 20-300C, while the mean temperature for the coldest months of January and February is about 10-120C. In January and December months at locations of higher altitudes such as Gasa temperatures drop to minus 2.1 degree Celsius

16. The average annual rainfall ranges from 600 mm to 5,000 mm but sometimes the precipitation becomes much large. The precipitation is heaviest during the months from June to September.

17. Ambient air quality monitoring is not being done in project area. NEC is monitoring air quality at Phuentsholing and Thimphu. The concentration of respirable particulate matter and gaseous pollutants concentrations at both locations are within the limits. In project area ambient air quality is expected to be better as there are less traffic and commercial activities. These both are contributor to air quality through release of exhaust gases.

(d) Surface Water Quality and Sources

18. Each Dzongkhag has perennial rivers and local streams for the drainage of the area. The prominent streams are Maokhola, Shetikhahray Chu and Dawalakhola Chu in Sarpang, Wong Chu in Chukha, Paro Chu in Paro, Phegu Chu, Tong Chu, Pho Chu, Mochu and Punatangs Chu in Gasa, Tsang Chu, Dang Chu, Kisona Chu and Hangra Chu in Wangduephodrang, Pho Chu, Mochu, and Sankosh Chu in Punakha. Tributaries of Wong Chu also drain Haa. Wong Chu tributaries drain Dagana and Trongsa by river system mentioned for Wangdue. Samtse Dzongkhag is drained by Torsa River.

(e) Ground Water Potential and Quality

19. There are no data available on the groundwater potential. Ground water resources are also abundant with springs emerging from basement rocks, old landslides and fluvial deposits. Groundwater in landslide and alluvial deposits has been estimated at an exploitable rate of 3 liters/ second/km2. Currently water quality monitoring is only conducted in the four major river system of Bhutan. Generally, the state of Bhutan’s ground water quality is still good but with expanding settlement along rivers, there are localized pollution problems due to expanding settlement along rivers. In project area, water quality is anticipated to be good.

(f) Noise Level

20. Data on measured noise levels is not available in the project area as currently NEC is measuring noise levels at Phuentsholing and Thimphu only. Major contributors to the ambient noise levels are commercial activities and vehicular traffic. In project area these activities are not much, therefore, noise is expected to be within the stipulated limits notified by NEC for Rural and Residential areas (55 dB(A) during day, and 45 dB(A) during night).

(g) Aquatic Environment

21. There are 41 species of fishes in the rivers and lakes of Bhutan. This includes eight exotic species like the coldwater trout, and seven species introduced for warm water aquaculture. This report gives detailed listing of these species.

0.9.2 Ecological Resources

(a) Protected Areas

22. In ten Dzongkhags where SHLS project is planned to be implemented there are six protected areas namely Jigme Singye Wangchuk National Park(JSWNP), Royal Manas National Park(RMNP) ,Phibsoo Wild Life Sanctuary, Torsa Strict Nature Reserve (TSNR), Blue Mountain National Park (BMNP) and Jigme Dorjee National Park (JDNP). These protected areas fall in Sarpang, Dagana, Paro, Haa, Wangdue Phodrang, Trongsa, Gasa and Punakha. Dzongkhags. Details of species plantations have been provided in the report. It is anticipated that SHLS will not be established in habitations in these protected areas due to constraints of accessibility.

(b) Forest and Flora

23. The dominant forest type in all 10 Dzongkhags is broadleaf. In forest areas of Dzongkhags broad leaf forest ranges from 30-95%. The second dominant category of forest is mixed conifer forest. The forests in the protected areas mainly comprise of Subtropical forests, warm broadleaved forest and cool broadleaved forests. The botanical and local names of species found in these forests have been given in the report.

24. The wild life has been reported in forest areas. There are 76 species of fauna found in the forests of project areas. These have been listed in the report. At habitations these are not expected. Installation of SHLS will be in the habitations only.

0.9.3 Economic Development

(a) Land Use, Industries and Agriculture

25. The predominant land use in project area is under forest. The average % of forest area in each Dzongkhag is 60% except Chukha and Dagana where forest percentages are 82 and 80 % respectively. The cultivable area is less than 8% in all ten Dzongkhags. The percentage of area under settlement is about 0.3%. The area under pastures is around 4%. Balance land use is in water bodies and rocky area. The area under settlement is very less due to the fact that population density of the country is 16 persons per square km.

26. Major crops produced in project area include maize, wheat, buckwheat, barley, mustard, finger millet and foxtail millet along with a wide variety of green vegetables. Potato producing areas are Haa and Paro. While orange is grown in almost all southern Dzongkhags of the country, cardamom, areca

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nut, ginger, guava, lemon, banana and mango are also grown extensively in plain areas close to Indian border.

27. Most of the existing industrial establishments in Bhutan are small scale or cottage industries. In project area there are industries in Samtse Sarpang and Chukha. Phuentsholing the biggest industrial area is located in Chukha. There is good growth potential for industries in Gelephu. A new airport is planned at Gelephu. Two major hydro power project of the country Chukha Hydro Power Ltd. and Tala Hydro Power Ltd. are located in Chukha Dzongkhag.

(b) Administrative Infrastructure and Community Facilities

28. All district head quarters in the project area namely Sarpang, Chukha, Damphu (Head quarter of Samtse) Dagana, Gasa, Paro, Haa, Punakha, Trongsa and Wangduephodrang have district administrative offices such as Forest, Revenue, court, etc. These also have amenities such as bank, post office and communication centers.

29. The community facilities such as schools, health facilities exist at Gewog and Dzongkhag level. Almost 50% population has access to piped water supply.

30. Transportation facilities in all Dzongkhags are through road and mule tracks. Remote locations on high elevations are connected through mule track. The only international airport of the country is in Paro Dzongkhag and at Paro. There is no rail head in any of the Dzongkhags. One airport is proposed at Gelephu in Sarpang Dzongkhag.

(d) Electricity and Communication

31. The household close to Dzongkhag head quarters are electrified through grid extension.. As per information available on Dzongkhag web site number of house hold electrified are 1563 in Samtse, 2197 in Sarpang, 10323 in Chukha, and 1490 in Wangduephodrang. In other Dzongkhags exact number of household electrified is not known but electrification is around 70%.

32. All Dzongkhag head quarters are connected by telephone. All Dzongkhag towns have mobile phone connectivity.

(e) Tourism Potential

33. The majority of tourists visit the Dzonghags which have tourist resources such as Paro, Punuakha, and Wangduephodrang. These Dzongkhags account for over 77% of the total bed nights. Balance 7 Dzongkhags have very poor tourism potential due to poor infrastructure facilities.

34. Gasa is also a popular trekking destination because it has a number of trekking routes, such as the 24 day Snowman trek in Lunana, and 2 week Lingshi-Laya-Gasa trek starting from Paro and ending in Punakha, the Gasa- Laya trek and the 2 week Masagang trek.

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0.9.4 Social and Cultural Resources

(a) Demography

35. The population of Bhutan includes many ethnic groups such as the Sharchops from the east, Ngalongs from the west, Khengpas from the central region, nomads from the north and Lhotshampas from the south. These (and others) are all found in project area. Because of the mix of ethnicities a wide variety of dialects is spoken, of which Dzongkha, Khengkha, Sharchop and various dialects of Nepali are the most common. The majority of the population is Buddhist (around 70%) and the remainders are mainly Hindu, mostly in the southern areas.

36. The project area has a sex ratio of 1:1. In project area about 70% of the population is rural residents while 30% is urban dwellers. The average number of family members in each household is 4.7 in project area. The employment rate is about 40%. Around 79% of the households in the Dzongkhag own land, 59% own their home, 8% own their own business and 15% own a vehicle.

(b)History and Cultural

37. There are few culturally important monasteries and other important culture structures in Wanagdue, Punakha and Paro. The details of these have been given in the report.

38. In Bhutan traditions are followed religiously. The men and women wear their traditional dress Kho and Kira. In almost all ten Dzongkhags of project area traditional dress is worn. In Gasa Dzongkhag Layaps (from Laya) and Lunaps (from Lunana) are unique because they have their own dress, language, culture and tradition.

0.10 Environmental Impacts and Mitigation Measures

39. No impacts during construction and operation have been identified on ecological sensitive and protective areas such as JSWNP, RMNP, BMNP, JDNP National Parks, Torsa Strict Nature Reserve (TSNR) and Phibsoo Wild Life Sanctuary in the project area. The other environmental attributes where no impacts have been identified during construction and operation are as follows:

 Physical Resources- Geology, climate, ambient air quality, Surface water sources and quality, Ground water sources and quality and Noise levels, Rural services/utilities (water supply, electricity, and telephone lines, etc.)  Ecological Resources- Protected areas, Biodiversity, rare and endangered species, wild life, and biodiversity.  Economic Development Resources- Land use, industries, agriculture, tourism, transportation, electricity and communication, and administrative infrastructure

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 Social and Cultural Resources- Demography, History and culture, involuntary resettlement 40. The only impact identified on topography is that PV panel of SHLS will be visible. This will be permanent impact and will start from installation phase.

41. The other impact identified during operation phase is disposal of used batteries. If the batteries are disposed off in open land then they will contaminate the soil with lead which is poisonous and a heavy metal.

42. No adverse impact has been identified on biodiversity of project area.

43. Bhutan Power Corporation (BPC) is operating about 150 Customer Service Centers at village level in the entire Bhutan. The implementing agency of SHL system project is Renewable Energy Division (RED) of MOEA. The RED will have a memorandum of understanding with BPC for operation and maintenance of SHLS. The village technician of BPC will provide operation and maintenance services to SHL systems. If battery is not working and to be replaced the village technician will arrange local labour to carry the used battery to BPC’s nearest customer service centre. DOE SHL system Operation and Maintenance manger will arrange a truck to pick up used batteries stored at BPC’s customer service centers periodically. These batteries will be shipped to Phuentsholing. Thereafter these batteries will be sent to authorized battery recyclers in India. A leak proof used battery collection system will be developed. Hence no impacts are anticipated on soils and environment of the project area.

44. Since minor visible changes in topography are permanent and not pinching to the eyes, therefore, no mitigations are warranted for this.

45. The proposed SHLS project will use solar energy for lighting in rural house hold. The solar energy is a clean, sustainable and renewable energy. The project will have a host of environmental and social benefits, including:

 Use of clean and sustainable solar energy  Reduction in kerosene and candle consumption for lighting  Reduction in green house gas emissions as a consequence of reduction in kerosene consumption  No social issues and no cutting of trees  Cost effective  Direct and indirect Employment opportunities  No loss of energy in transmission

0.11 Analyses of Alternatives

46. Three possible alternatives have been considered for the comparison. The comparative summary and alternatives are given below:

Parameters NO Project Project Scenario Other form of Energy Scenario (Small Hydro) Economic Use of SHLS will cost High cost as well as cost kerosene/candles about Nu 30,000 may not be feasible to is financially very The RGOB is install due to terrain cheap. installing the SHLS and techno-economic free of cost but reasons 10% cost of spare Will take a long time to parts will be finalise proper charged from the locations and target of customers electrification will not be achieved. Developme Village/Gewog Community will be Community will be ntal impacts considered considered considered developed. & people’s underdeveloped developed perception Social The lighting is Clean and Hydropower is also benefit poor in kerosene renewable energy clean energy. But and candles The light quality during winter season burning. This will be good for due to low flow in poor lighting will study and other rivers the functioning cause problem in domestic activities of small hydro is working and It can be installed questionable studying anywhere without Electricity supply at any problem. many villages not No significant possible due difficulty recurring cost as in extending grid due O&M will be to terrain conditions subsidized Environmen There will be No environmental tal impacts continued impacts Extending grid will impacts due to Green house gas involve cutting of trees emissions of emissions will in the Right of Way of green house reduce. grid. This will have gases due to Effective and leak negative impacts on burning of fossil proof battery forests. Many a times fuels. Hence collection planned. extending grid from negative impacts small hydro may not be on environment possible.

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Parameters NO Project Project Scenario Other form of Energy Scenario (Small Hydro) Health Negative impact Positive impact on Positive impact on on health due to health as solar health smoke generation energy is a clean form of energy

47. Based on the comparison of all three alternatives it has been concluded that project alternative is the best alternative for the achievement of target of RGOB for 100 % electrification of all households. The project alternative from environmental angle is also good.

0.12 Public Consultations and Information Disclosure

48. The public consultations have been carried out since inception stage of project with a view to disseminate the information about project. The consultations were carried out at Institutional Level, local level and Dzongkhag level. The dates of consultations and level at which these have been done are summarised below:

S. Date of Level Organisations/ Objective No Consultation Rural Locations . 01 03-12-2009 Inception NEC,BPC, Ministry of Objective of workshop Agriculture and workshop was to by PPTA Forests, Ministry of invite views, Consultant Economic Affairs, comments and s JICA, ADB suggestions on each component of PPTA Project 02 08-12-2009 Institutiona NEC for Environmental Director NEC l clearance of SHLS suggested to project submit concept papers for each component 03 17-12-2009 Dzongkha Consultations with - To explore and 26-03- g Level District head Chukha possibility of wind 2010 for Wind Power site power installation location, local public at at Chukha and Tsimalakha for wind Tsimalakha, Power site suitability, enquiries from local public at Chukha public and

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S. Date of Level Organisations/ Objective No Consultation Rural Locations . for wind power site suggestion from suitability and for SHLS Dzongkhag head, installation, and rural installation of population Chukha SHLS in Dzongkhag for SHLS Dzongkhag rural installation areas 04 12-01-2010 Local level Dobang Gewog in To inform public Sarpang Dzongkhag about project and to invite their comments and suggestions 05 15-01-2010 Local level Chhota Tsirang /Sisty To inform public village in Sarpang about project and Dzongkhag to invite their comments and suggestions 06 19-01-2010 Local level Tongshto Village in To inform public Tseza Gewog in about project and Dagana Dzongkhag to invite their comments and suggestions 07 23-01-2010 Local level Thasa village in Lajab To inform public Gewog in Dagana about project and Dzongkhag to invite their comments and suggestions 08 28-01-2010 Local level Upper Majgaon village To inform public in Patalay Gewog in about project and Tsirang Dzongkhag to invite their comments and suggestions 10 28-01-2010 Local level Tsakling To inform public about project and to invite their comments and suggestions

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49. The comments, suggestions and concern of public and their addressal in the project preparation has been summarised below:

Issue/Concern Addressal under the Project There are clouds in most The consultants team has collected solar part of the year, insolation (solar radiation) data for Dagana therefore, functioning Dzongkhag and available solar insolation is may be difficult (Issue sufficient for the effective operation of SHLS raised at Dagana) Locals during public Consultants told that extension of grid is not consultations indicated possible on account of techno-economic reasons that they will prefer due to this SHLS are being installed to achieve supply through grid as it 100 % rural electrification by 2013. will be more reliable (Issue raised at most of the locations) Batteries of SHLS will be The first installation of entire SLHS will be free of costly and difficult to cost. The battery life is 3-5 years. The subsequent transport in when there battery replacement will be made available at will be requirement for subsidized rates (Only 10% costs of spare parts replacement will be charged) by RED. The O&M will be provided by BPC customer service centre. The village technician will arrange a labour to pick up the used battery to the nearest customer service centre The locals opined that The O&M will be provided by BPC customer operation and service centre. At Renewable Energy Department maintenance will be a (RED) there will be a full time operation and problem for them as they maintenance manager who will manage O&M of have neither experience SHLS project with the help of BPC customer nor have seen any service centre. SLHS functioning Disposal of old batteries The old batteries will be replaced by new ones and taking care of PV by village technicians. The old batteries will be panel will be a problem transported to nearest BPC customer service centre. From customer service centre batteries will be lifted in a truck arranged by RED SHLS O&M manager for transportation to Phuentsholing. These will be transported to India for recycling Some people were The RED will procure all SHLS with good

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Issue/Concern Addressal under the Project apprehensive that technical specifications mentioned in Chapter-3 defective SHLS may be and from a known manufacturer under warranty. provided and will not The question of defective SHLS does not arise. work

50. At institutional level all people have welcomed project as this project will provide clean energy and will help in achieving the target of 100 % electrification.

0.13 Grievance Redress Mechanisms

51. The SHLS project does not involve any acquisition of land and there is no generation of emissions, effluents and solid waste also. The public complaints on environmental impacts are not anticipated as SHLS installation will be in the private house. RED will sign a Memorandum of understanding with BPC for O&M of SHLS in post installation phase. Currently BPC has 150 customer service centres across the country. All O&M complaints will be received at these Customer Service Centres either in person or through communication. On receipt of complaints village technician will attend the complaint. All complaints will be resolved within time frame of 7 working days. At Department of Energy (DOE) – Renewable Energy Division (RED) there will be a dedicated SHLS O&M Program Manager. The complaints from BPC service centres will also be forwarded to O&M SHLS Program Manager at RED for his record and analysis. This manager will be the focal person to receive and resolve any grievances. The manager will resolve the problem within a period of 2 weeks. No complaints related to environment are anticipated. In case there are any unforeseen environment related complaints these will also be resolved by O&M SHLS Program Manager. The O&M SHLS program Manager will also be responsible for EMP implementation. The RED will follow the open door policy to receive any suggestions to improve the functioning of SHLS. These suggestions will also be received at Customer Service Centres and office of SHLS at RED.

0.14 Environmental Management Plan (EMP)

52. The Environmental Management Plan is meant for mitigation/management/ avoidance of the negative impacts. For each mitigative measure to be taken, its location, timeframe, implementation and overseeing /supervising responsibilities are listed in the EMP. The EMP has been given in Table-9.

0.14.1 Environmental Management Plan (EMP) Cost

53. There is no exclusive EMP cost as this has been included in the other project implementation costs.

0 .15 Findings, Recommendations, and Conclusions

0.15.1 Findings

54. The findings of the SHLS project based on IEE prepared are as follows:

 The SHLS project is environment friendly and it will help to achieve RGOB target ‘Electricity to all by 2013’. It will help to electrify the habitations where extension of grid is not possible on account of techno- economic reasons.

 The potential environmental impact identified is safe collection and transport of used batteries from BPC customer service centres. For this EMP has been prepared. There will be no short term or long term adverse impacts on environment during installation and operation phase.

 Life quality of rural population will improve and project will bring prosperity. There will be direct and indirect generation of employment due to project implementation.

 Mitigation and monitoring measures have been developed in the EMP. The EMP will be implemented by the O&M Program Manager at RED., RGOB regulatory agencies, and ADB. Public consultation has been undertaken during project preparation. RED will follow an open door policy for receiving complaints if any from the concerned household owner of SHLS and will conduct additional consultations as necessary during project implementation.

0.15.2 Recommendations

55. The DOE will select an agency through competitive bidding for leak proof collection of used batteries from customer service centres of BPC and for transportation of these batteries to Phuentsholing for onward transport to authorised battery recyclers in India.

56. A memorandum of understanding should be signed between BPC and RED for O&M by the BPC village technicians

57. An orientation cum training program should be organised during installation phase by O&M manager at RED for village technicians of BPC for preventive maintenance of SHLS and safe transport of used batteries to BPC customer service centres. Similar training program is needed during operation phase for selected agency (transporters) for used battery collection and transport from BPC customer service centres.

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0.15.3 Conclusion

58. The SHLS Project will not result in any long-term significant adverse impacts. The likely negative impacts will be avoided through safe collection system of used batteries. Environmental and social benefits of the Project and long-term investment program objectives outweigh the potential negative impacts.

59. Based on the environmental assessment activities conducted to date, the Project is confirmed as environmental category ‘B’ and the IEE, including the EMP, is considered sufficient to meet the environmental assessment requirements of ADB, and RGOB. A full environmental impact assessment study is not required.

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Chapter - 1 Background

1.1 Background

1. Bhutan is a mountainous country with settlements scattered all over numerous mountains and valleys. The remoteness of most settlements cut off by steep slopes and forests makes delivery of basic services such as electricity, telecommunications and other allied services economically very inefficient. The Royal Government of Bhutan (RGOB) intends to provide electricity to all by 2013. Due to terrain and topographic conditions, providing lighting to rural household and institutions is not possible due to techno-economic reasons. Keeping the objective of RGOB in mind Solar Home Lighting Systems (SHLS) have been planned to be installed at 1850 in number households under assistance from ADB grant. All installations will be in the remote rural areas where more than 90% poor live. These all SLHS will be installed in villages where electricity can not to be supplied through on grid electrification due to non extension grid on account of techno-economic reasons. The Dzongkhags selected under ADB grant assistance for SLHS installation are Chukha, Dagana, Gasa, Haa, Paro, Punakha, Samtse, Sarpang, Trongsa and Wangdue Phodrang. The Department of Energy (DOE) of Ministry of Economic Affairs (MOEA) will be the Executive Agency (EA) and Renewable Energy Division under DOE will be the Implementing Agency (IA).

1.2 Initial Environmental Examination (IEE)

2. The Initial Environmental Examination (IEE) is carried out to identify and assess the potential environmental impacts from implementation of the SHLS project in rural areas to electrify the rural house hold and institutions. The SHLS will not involve any land acquisition. The solar panel will be installed on the roof top of the house. The other component of the SHLS such as Controller, Lumanaries (bulb/LED), Battery, wires and accessories will be inside the house. The current legislation of Royal Government of Bhutan does not require environmental impact assessment study for the implementation of SHLS. Proposed SHLS has been determined as Category B based on the Rapid Environmental Assessment described in the ADB’s Environmental Assessment Guidelines (2003) and ADB’s Safeguard Policy 2009. This IEE report is in accordance with ADB Safeguard Policy 2009 with due consideration to environmental legislation of Royal Government of Bhutan.

3. The IEE is prepared in order to meet the following objectives:

 To provide information about the general environmental settings in the targeted Dzongkhags of SHLS in the country;  To provide information on potential impacts of the proposed SHLS project and characteristic of impacts, magnitude, distribution, and their duration;  To provide information on potential mitigation measures to minimize the impacts;  To provide information on Environmental Management Plan (EMP) to mitigate adverse impacts due to implementation of the project;  To meet the ADB requirements for SHLS project financing.

4. Field visits were made to collect the requisite information, for the preparation of IEE, from various Government departments and from other secondary sources (including public consultations).

1.3 Structure of IEE Report

5. The IEE report has been divided in to ten chapters. The coverage of each chapter has been described below:

6. Chapter-1 The current chapter describes the general background of the project and requirement of IEE.

7. Chapter-2 describes Policy, Legal and administrative frame work of the project. This chapter describes acts and rules promulgated by RGOB and their applicability to the project.

8. Chapter-3 describes brief technical details of SHLS, per unit cost and implementing and executive agencies.

9. Chapter-4 covers environmental baseline description of the project area. The coverage of baseline has been done under the sections on ‘Biophysical Environment’, ‘Ecological Environment’ and ‘Economic Development’.

10. Chapter-5 covers potential environmental impacts and mitigation measures due to project implementation during installation and operation phases.

11. Chapter-6 covers analysis of alternatives. In this possible alternatives of project have been analyzed on cost, environment and socio-economic factors.

12. Chapter-7 covers Public Consultations and Information Disclosures. The public view, suggestions and opinion and their addressal has been covered in this chapter.

13. Chapter-8 describes grievance redress mechanism in the project. The complaints of public how, who and when will resolve have been covered in this chapter.

14. Chapter-9 describes institutional arrangements of project implementation and environmental management plan.

15. Chapter-10 describes findings, conclusion and recommendations of IEE study.

1.4 Acknowledgements

16. The PPTA consultants thankfully acknowledge all cooperation received from DOE, BPC, NEC, MOEA, Ministry of Agriculture and Forests, JICA and all Dzongdags of project area. The consultants will also like to acknowledge and thank for cooperation and guidance received from Mr. K. Ogino, Senior Energy Specialist ADB and Mr. S. Sasaki Environmental Expert of ADB.

Chapter - 2 Policy, Legal & Administrative Framework

2.0 Policy, Legal & Administrative Framework

2.1 Policies relevant to Biogas Component

17. The Royal Government of Bhutan has enacted a number of Acts and Rules to safeguard the environment in the country. The details of these Acts and Rules and their applicability to SHLS project have been provided in the following subsections.

2.2 Electrification Act 2001

18. Rural Electrification is strongly promoted in the Electricity Act, 2001. Part 7, Section 61.1 states that ‘The Minister shall undertake to promote, support and provide rural electrification programmes through public and private sector participation in order to

1. achieve equitable regional distribution and access to electricity; 2. maximize the economic, social and environmental benefits of rural electrification subsidies; 3. promote extension of the grid and development of off-grid electrification; 4. promote renewable energy

19. Hence this SHLS project will help to achieve the aim of the Act to achieve equitable regional distribution and access to electricity and promotion of renewal energy.

2.3 Forest and Nature Conservation Act (FNCA) 1995:

20. The Forest Act (1969) was the first environmental legislation in Bhutan and brought all forest resources under government custody to regulate utilization. This was repealed with the enactment of the FNCA in 1995, which allows community stewardship of forests, and aims to provide protection and sustainable use of forests, wildlife, and related natural resources. Schedule I lists those wild animals and plants that are given full protection under the Act. The scheduled trees are not expected at locations of SHLS as these will be installed in the house of rural public. The FNCA establishes that all forests in Bhutan are Government Reserved Forests (GRF), and prohibits any development activity in these areas except with a permit. This Act will not be applicable to SHLS project.

2.4 Forest and Nature Conservation Rules (FNCR) 2000:

21. Under powers established by the FNCA, the Ministry of Agriculture promulgated the FNCR in 2000, which was revised in 2006. Amongst other things the FNCR allows for:

 Allotment of land and land rights in GRF;  Prohibitions, restrictions and concessions in GRF;

 Transport and trade of forest produce;  Declaration and administration of protected areas;  Protection of wildlife and use of certain wild species;  Prevention of forest fires, land clearance, and activities potentially impacting soil, water and wildlife resources; and  Enforcing penalties for offences related to these and other aspects of the FNCR.

22. None of these activities likely to be taken up in the SHLS project, therefore, this act will not be applicable.

2.5 Protected Areas

23. Since 2008, there are now five National Parks, four Wildlife Sanctuaries and one Strict Nature Reserve in Bhutan. These protected areas have conservation policies that state that all proposed development projects within the boundaries of the protected area will be subject to an EIA under the jurisdiction of the NEC. This initially included buffer zones outside the protected areas, but was extended to include Biological Corridors in 2006 by an addendum to the FNCR.

24. Biological Corridors (BC) are defined as “areas set aside to connect one or more protected areas, which shall be conserved and managed for the safe movement of wildlife.” Although BCs do not have the same status as protected areas, activities such as new settlements, quarrying and mining, and leasing of land for grazing are prohibited. All other development activities, including construction of roads, electricity transmission and distribution lines, or any other structures, require a permit from DoF and an EC application to NEC, supported by an EIA.

25. The installation of SHLS will be within the houses of rural population and no activity will be taken up in the protected areas and BCs, therefore, no impact will be there in these protected areas and BCs.

2.6 Land Act 1979 (Revised 2007)

26. The Land Act 1979 which provides the basis for land tenure in Bhutan was revised in 2007 to streamline many provisions in the Land Act. One major change was the establishment of an autonomous National Land Commission Secretariat which has been given full responsibility for all matters pertaining to land registration. Also the 20 land categories have been reduced to seven categories in the revised Act including i) Chhuzhing (wetland), ii) Kamzhing (dry land) including orchard, iii) Khimsa (Residential land), iv) Industrial land, v) Commercial land, vi) Recreational and vii) Institutional land.

27. Powers over land management have now been decentralized to local authorities like the Gewog Tshogdue, Dzongkhag Tshogdue, and Thromdes. These are empowered to resolve land dispute, endorse land transaction and

conversion of land categories.

28. Under this Act, there are provisions for acquisition of land by the Government, if it is required for the benefit of the country. In such cases, the affected person will be compensated with substitute land from the same Dzongkhag or given cash compensation depending on the land classification as per the prevailing land compensation rate determined by the Act. If a house is acquired, compensation is paid on the basis of an evaluation carried out by a qualified engineer appointed by the competent authority. No land acquisition is planned for the implementation of SHLS project; therefore, this act will not be applicable.

2.7 RGOB Decentralization Policy 2002

29. The Dzongkhag and Gewog Yargay Tshogdue Acts were implemented in 2002 to support the Government’s decentralization policy and empower locally elected community bodies (DYTs and GYTs) with the authority and responsibility to plan and implement development programmes and activities, including those related to environmental management. Through this legislation the DYT is able to:

 Make recommendations on activities with major environmental impacts;  Designate and protect sites and monuments of cultural or historical interest;  Designate and protect areas of special scenic beauty or biodiversity, such as Dzongkhag Parks and sanctuaries;  Establish and enforce Regulations to control noise pollution;  Prohibit construction of structures within 50 ft of highways;  The GYT is able to establish and enforce regulations to:  Control and prevent pollution of air, soil and water;  Ensure safe disposal of waste and adequate standards of sanitation;  Conserve and protect water resources, including rivers, streams, springs and lakes;  The GYT also has custody of communal lands and community forests and can prevent encroachment onto land and forest.

30. This policy will not be triggered due to implementation of this SLHS project as there will be no acquisition of land.

2.8 RGOB Environmental Clearance Procedures

2.8.1 Environmental Classification

31. NEC decides the environmental classification of projects on receipt of the Environmental Clearance (EC) application submitted by the project proponent. There are three possible outcomes:

i) NEC may grant Environmental Clearance on the basis of the EC application if the application contains sufficient information and based on information submitted it is concluded that the proposed development will not have significant negative environmental impacts; ii) NEC may deny Environmental Clearance on the basis of the EC application if the application contains insufficient information and it is clear that the proposed development will have significant negative environmental impacts that cannot be suitably mitigated; iii) If the EC application contains insufficient information on the likely nature and extent of the environmental impacts of the project or the manner in which they will be mitigated, NEC will determine that an EIA is required.

2.8.2 Preparation of EC Application

32. The requirements of the EC application are set down in sectoral guidelines that were revised with ADB assistance in 2006. The installation of Solar Home Lighting System is not included in the List of activities requiring environmental clearance.

33. The information required for environmental clearance is very specific, and in all cases includes information on the applicant, the project, funding agency, the affected environment, potential impacts, mitigation, monitoring and public consultation.

34. There are three key elements of the EC application. These include the provision of signed No Objection Certificates (NOC) from all affected stakeholders/households, Forestry clearance from the Department of Forest and Dzongkhag Administrative Approval.

2.9 Conclusion

35. Based on discussion above it is concluded that none of the policies/ Acts mentioned above are directly applicable to the SHLS project. The installation of SHLS is not included in the list of activities published by NEC requiring environmental clearance. However, a series of discussions have been held with NEC and based on this discussion outcome a concept note was submitted by Department of Energy (MOEA) for obtaining formal waiver off of environmental clearance. Consequent to submission of this concept note NEC has given waiver off of environmental clearance. The SHLS project will help to achieve set target of ‘Rural Electrification Act, 2001’. The project will have a significant contribution in achieving the target of RGOB ‘Electricity for All by 2013’.

Chapter - 3 Description of the Project

3.0 Description of the Project

3.1 Need for the Project

36. Bhutan is a mountainous country and rural electrification through grid is not possible due to techno-economic reasons at many rural households. RGOB has set a target of ‘Electricity for All’ by 2013. In order to achieve the set target installation of solar home lighting system (SHLS), in remote rural household where grid extension is not possible, has been found to be a feasible option. The project will provide electrification in poor rural households.

3.2 Basic Objective

37. The objective of the proposed SHLS project is to provide electricity to households in remote, isolated rural areas with solar home lighting systems by 2013. The end recipients of the proposed program are households in rural areas where more than 90% of the poor live.

3.3 Location of Project

38. The SHLS project will be spread over 10 Dzongkhag of the country. The numbers of targeted (Dzongkhag) wise household are as given below:

Table 1: No. of Targeted Households for Off-Grid Solar Home Lighting Systems

S. No. Name of Dzongkhag Targeted Number of House Hold 1 Chukha 563 2 Dagana 231 3 Gasa 200 4 Haa 170 5 Paro 44 6 Punakha 16 7 Samtse 177 8 Sarpang 177 9 Trongsa 12 10 Wanduephodrang 260 Total 1850

3.4 Details of Solar Home Lighting System

3.4.1 Proposed Solar Home Lighting System Specifications

39. The specifications for the proposed solar home lighting systems to be

installed take into account the transport costs to the remote mountainous areas and the improved system reliability to reduce the maintenance requirements. Table 2 shows the system components and specifications:

Table 2: Specifications of Solar Home Lighting System

S. No. Component Specifications 1 Solar Panel 80 WP 2 Charge Controller 10 Amps 3 Lumanaries 3 Watt WELD 4 Battery 80 AH@ c20, <32 kg 5 Wires As per locally available 6 Accessories As per locally available

40. The Department of Energy has undertaken a detailed analysis of SHLS performance and components in Bhutan, and the design recommended in this report is based on their work. The design accounts for weather conditions, Bhutanese solar insolation resources, cable losses, pane degradation factors, battery and charge controller efficiencies and aging of components over time. In this sense, the design is regarded as conservative, but will not disappoint in performance, and this is an important consideration when providing services to rural households where service and support is difficult.

41. Bhutan offers 4.25 kW/(m2day) as a solar resource. Taking into account an overall efficiency loss of 56% on the PV panel, and an additional loss of 30% due to battery inefficiency, cabling and environmental factors, the following design components have been selected:

3.4.2 Photo Voltaic (PV) Panel

42. The generation of the minimum operational amount of power for correct system operation, even in the lowest solar availability months in winter requires the use of an 80 watt PV panel. Assuming the use of 3 x standard 11 watt CFL bulbs for 4 hours per day, it can be noted that 158 watt hours per day will be consumed, and hence the PV panel must produce this amount of power, plus efficiency losses, in order to ensure reliable light even in the winter months.

Rated Measured Hours used Watt Load watts amperes per day hours/day Light 1 11 1.1 4 52.8 Light 2 11 1.1 4 52.8 Night light 11 1.1 4 52.8

Total Watt-hours per day of energy use 158.4

43. Taking efficiency losses into account, the solar panel is required to generate a minimum of 206 watt hours per day in order to achieve an actual 158 watts of useable power at the light fixture terminals.

44. With an effective panel generation efficiency of 56%, the solar energy available for power generation per day is not 4.5 hours, but 2.52 hours. With a target of 206 watt hours per day, and 2.52 effective solar hours per day, an 80 watt PV panels is required.

3.4.3 Technical Details of SHLS

45. The suggested technical specification describes a SHLS that comprises the following key components:

1. An 80 Wpk PV panel, either mono or polycrystalline, made to full international standards and certifications.

2. A minimum 10 ampere charge controller, suitable for use with the battery type selected and with all reverse polarity and battery protection modes incorporated.

3. Deep cycles lead acid battery of flooded lead acid design, of not less than 90 AH @C10. The battery is to be supplied either fully charged, or with electrolyte supplied separately, and with the date of manufacture clearly marked. Terminals are to be bolt through type and not circular automotive posts.

4. 3 watt WLED lighting fixtures to supply not less than 150 lumens per watt. WLED fittings must fit standard available lighting fixtures and be reverse polarity protected.

3.4.4 PV Technical Specifications

a. Either mono crystalline or poly crystalline panel technologies are acceptable. b. The Solar Panels shall meet the requirements set in IEC 61215:2005. c. Each module must be labeled indicating at a minimum: Manufacturer, Model Number, Serial Number, Peak Watt Rating, Voltage and Current at peak power, Open Circuit Voltage and Short Circuit Current of each module. d. Solar panels shall have framed module with type A junction box (rain tight) accepting available good quality conduit/cable fittings. e. Panels have to be packaged for safe transportation and prepared for rough handling and transport to remote, rural areas. f. The solar panel shall have a certificate of compliance, issued by one of the major international recognized testing laboratories. g. Performance warranty cover at least 20 years of operation.

3.4.5 Charge Controller

a. The regulator or charge controller shall protect the battery against overcharge and excessive discharge, besides giving information to users on the general state of the system.

b. The charge controller shall ensure safe and reliable operation in a range of ambient temperatures from -5º C to + 40º C.

c. The “load voltage disconnect” (LVD) shall respect the established limits for the maximum discharge depth (DoDmax) of the battery (70%). Regardless of this condition, it should never be lower than 11.5 V.

d. Load disconnection must take no longer than 30 seconds as from the moment on which the disconnection voltage is achieved.

e. The “load voltage reconnect” must be between 0.9 and 1.2 V higher than the disconnection voltage.

f. The disconnection, reconnection and alarm voltages must have a precision of at not less than ± 0.5% (± 60 mV), and must remain constant through the full range of possible operation temperatures.

g. The “final charge voltage” (high voltage disconnect, HVD) must be 14.4 V for tubular battery. These values are to be interpreted at 25º C. The thresholds must be compensated in temperature, at the rate of between - 18 to -24 mV/°C

h. The final load and replacement voltages must have a precision of at least ± 0.5% (± 60 mV)

i. In the case of ON-OFF regulators, the “replacement voltage” must be in range of 13 -13.5 V. These values are to be interpreted at 25º C.

j. The charge controller shall not use electro mechanic relays

k. The charge controller shall use a pulse with modulation (PWM) strategy to control the charging current.

l. The maximum parasitic current draw of the controller, when no LEDs are lit, shall not exceed 5 mA

m. The regulator must allow for the photovoltaic generator to effectively charge the battery for any voltage higher than 9 V.

n. The connection terminal must easily admit cables with a section of minimum 6 mm2.

o. The charge controller boxes must offer a protection of international protection standard (IP 22).

p. The regulator must be protected from reverse polarity connection errors on both the battery and the PV inputs.

q. The charge controller must prevent reverse current flow into the PV module at all times.

r. The regulator must resist, without any damages, any possible condition related to operation of the battery. In addition, it must be able to accept without any damage the maximum open circuit voltage of the PV panel, and be not less than 26 V.

s. The regulator must protect the loads against damage related to operation without a battery.

t. The regulator must be protected from excessive voltages induced by atmospheric discharges (static) through transitory suppression devices.

u. The acoustic noise coming from the regulator must be lower than 35 dB (A), as measured at a distance of one meter.

v. The regulator should not produce any interference, either radiated or conducted, in the radio frequencies: AM 530kHz – 1600 kHz; SW1: 2.3 MHz – 7 MHz; SW2: 7 MHz – 22 MHz, and in any operating condition.

w. The regulator must include, as a minimum, the following operating indicators: a. Charging mode b. State of battery: charged, half full and empty c. Alarms: short circuit, excessive current, excessive voltage and load disconnect. x. The model number, serial number, rated voltages and currents should be noted on the charge controller case

y. The load regulator must have a certificate of compliance, issued by any of the major international laboratories, with one of the following standards:

a. Recommended Specifications PVRS 6/6A of the Photovoltaic Global Approval Program(PVGAP). b. Universal Technical Standard for Solar Home Systems - Thermie B: SUP 995-96, ECDGXVII, 1998. Version 2, revised 2001(Reference Number of SHLS Standard).

z. A warranty of not less than 2 years of operation shall be provided.

3.4.6 Rechargeable Deep Cycle Battery

a. The battery should be a vented-type “heavy duty” tubular lead acid battery of nominal value 12V.

b. The battery may be either a flooded type design.

c. The nominal battery capacity shall be 90 AH @C10

d. The battery shall meet the requirements and recommendations given in IEC 61427: 2005.

e. The battery must ensure safe and reliable operation in the whole range of ambient temperatures from -5º C to + 35º C.

f. Technical specifications of the battery including the nominal 80 AH

capacity at a certain current intensity (e.g. I10, I20, I100 ), the number of cycles at different dept of discharge and maximum depth of discharge shall be clearly indicated.

g. Cycle life of the battery (i.e., before its residual life drops below 80

percent of the rated AH capacity), at I10 must exceed 1500 cycles when discharged down to an average depth of discharge (DOD) of 50 percent at the discharge rate of 10 hours.

h. The maximum permissible self-discharge rate is 5 percent of rated capacity per month at 25 deg. C.

i. The battery shall have a flat, bolt on type post terminal to allow firm and effective electrical connections. Round, automotive type terminal posts are not acceptable.

j. The battery shall have a certificate of compliances, issued by any of the major international testing laboratories.

k. Batteries should be packaged in order to withstand transportation to remote areas. In the case of flooded batteries it should be considered to provide the acid separately in a fully sealed, leak-proof container.

l. The manufacturing warranty must be not less than 2 years.

3.4.7 LED Lamp with Matching Holder

a. LED lamps shall have a nominal input voltage of 12V.

b. The LED unit must ensure safe and reliable operation in the whole voltage range of -10% to + 25% of the nominal voltage (10.8 V to 15 V), and in the whole range of temperatures from -5º C to +40º C.

c. The power consumption shall range from 1.4 to 3.6W

d. The LED lamps must deliver at minimum a luminous efficacy of at least 125 lm/W (at 25 °C ambient temperature)

e. The LED lamp must be fully protected against reverse polarity

f. The lamp must be fully compatible with standard lamp holders.

g. The emitted light shall be cool or warm white.

h. The wide angle shall be between 120° to 125°.

i. Lamps should be marked with the manufacturer model number, rated voltage, wattage and date of manufacture or batch number

j. The manufacturer’s warranty shall cover at least 3 years.

3.5 Location of Project

46. The SHLS are planned to be installed in Chukha, Dagana, Gasa, Haa, Paro, Punakha, Samtse, Sarpang, Trongsa and Wangduephodarang. The project implementation period will be 2011 to 2013.

Figure 1: Proposed Dzongkhags for SHLS Installation

3.6 Cost of Project

47. The component wise cost estimates of a single house hold are given below:

S. No. Component Specifications Quantity Unit Cost Total Cost (Nu) (Nu) 1 Solar Panel 80 WP 1 15,920 15,920 2 Charge 10 Amps 1 720 720 Controller 3 Lumanaries 3 Watt WELD 3 1,800 5,400 4 Battery 80 AH@ c20, 1 5,100 5,100 <32 kg 5 Wires As per locally 1 1,030 1,030

S. No. Component Specifications Quantity Unit Cost Total Cost (Nu) (Nu) available 6 Accessories As per locally 1 500 500 available 7 Total Capital - 28,670 Fixed Cost 8 Labour Cost 1 1,500 1,500 9 Total Cost 30,170

48. Total cost of project has been estimated as 62.0 million Ngultrum which is equivalent to US Dollars.1.5 millions.

3.7 Implementing and Executive Agencies

49. The Department of Energy (Ministry of Economic Affairs) will be the Executing Agency (EA), and Department of Energy’s (DOE) Renewable Energy Division (RED) will be the Implementing Agency (IA). RED has managed the implementation of Bhutan Solar Electrification Program since 2006 and demonstrated good performance for project management of solar home lighting electrification project.

Chapter - 4 Description of the Environment

4.0 Description of the Environment

4.1 Physical Resources

4.1.1 Location

50. The Dzongkhags selected for SLHS project lie in Central, western and northern parts of Bhutan bordering China, India and Tibet (autonomous region of China). The total geographical area of all ten Dzongkhags is around 21000 km square (approximately). The total geographical area of the country is 38394square km. Gasa Dzongkhag has a highest area of 4409.30 square km whereas Punakha Dzongkhag has least area of 974 square km.

51. There are about 50,000 households in all ten Dzongkhags. Out of these 40 - 50% are electrified. The minimum distance of targeted Dzongkhags from the capital city of Thimphu is around 52 km (Paro) and maximum distance is about 270 km (Samtse).The prominent towns in ten Dzongkhags are Gelephu(in Sarpang Dzongkhag), Punakha, Chukha, Haa Dagana, Sarpang, Gasa, Wangdue and Samtse. All towns mentioned above are head quarters of Dzongkhags except Gelephu. Due to its proximity to the Indian markets, Gelephu is the main centre of commercial activities in the Sarpang Dzongkhag. Samtse, Sarpang and Chukha Dzongkhags extend to Indian border (West Bengal State).

4.1.2 Topography, Geology and Soils

52. All ten Dzongkhags where SHLS are planned to installed lie in central, northern and western part of the country with elevations ranging from 200m to 5600m above sea level. Parts of Haa have highest elevation of 5600 m. In these higher zones SLHS installation is not likely as there are no habitations. At the lower altitudes, the terrain is mostly flat or gentle and agriculture is the main land use. The topography of all Dzongkhags extends to broad fertile valleys where agriculture and settlement are usually concentrated especially near river banks between the altitudes as low as 200 m and high forested mountains of elevations at 5600m above sea level.

53. The area of the Dzongkhag varies from 974 sq km (Punakha) to 4038 sq. km Gasa. The average percentage under forest cover in targeted Dzongkhags for SHLS is 64%. About 5.5% is under agricultural production. Chukha has highest percentage of forest in all 10 Dzongkhags. Within the forested area broadleaf forest dominates with percentages ranging from 30-95%. Second dominant category of forests in Dzonkgas is Conifer.

54. All the Dzongkhags fall within the Lesser Himalayan formation. This includes a wide range of sedimentary and low grade metamorphic rocks, including argillites and metargillites, sandstones and quartzites, limestone, dolomite and gypsum. Gneisses underlie more than 70% of the country right down almost to the Indian border. The shumar formation and Manas formation also exist in some of Dzongkhags such as Sarpang. The Shumar formation comprises of alternating sequence of quartzite and phyllite/mica schist with impersistent bands of carbonate lenses of gypsum and sheet like mylonitised granite gneiss as well as basic silts. The Manas formation comprises of Dolomite,

Limestone, Phyllite and quartzite. Eastwards towards Gelephu and beyond, the quaternary conglomerate comprises mainly of sand, silt and clay. The valley along the Sarpang-Tsirang road is dominated by argillaceous and arenaceous sediments.

55. The soil types found in all 10 Dzonggkhags range from sandy, clay, loam to sandy loam and clayey loam. Generally the soil in the alluvial low land river valleys is quite fertile and crops grow well as soil moisture is also adequate in the foothills. At lower altitudes, many of the slopes are covered with colluviums, a mixture of soil and stones deposited by slow creep and many small landslips and slumps. At slopes soils are shallow.

4.1.3 Climate

56. The climate in project area varies according to the altitude. The higher altitude experience cool temperate climate with warm humid summers and chilly winters with snowfall in some parts in winter, while those in the lower elevations experience sub-tropical to temperate climate. The Wangduephodrang Dzongkhag is known as windy due to the strong winds that blow across the valley each day.

57. The relative humidity in project area ranges 63% to 90%, with an average of about 70%. The least humid period is during pre monsoon (March-May). The average mean temperature for the warmest months of June and July is about 20-300C, while the mean temperature for the coldest months of January and February is about 10-120C. In January and December months at locations of higher altitudes such as Gasa temperatures drop to minus 2.1 degree Celsius

58. The average annual rainfall ranges from 600 mm to 5,000 mm but sometimes the precipitation becomes much large. The precipitation is heaviest during the months from June to September.

4.1.4 Air Quality

59. Air pollution in Bhutan is generated as a recent phenomenon and it can be attributed to rapid urbanization. Diesel vehicles with poor quality of fuel are the major sources for the urban air pollution. There is no information available on the ambient air quality of all ten Dzongkhags because so far ambient air quality (PM, NOx and SO2) monitoring has only been conducted in Thimphu and Phuentsholing periodically. The average respirable particulate matter (PM10) concentration of 24.5 g/m3 in Thimphu is lower than internationally set PM10 concentration level of 40 g/m3. Since all ten Dzongkhags have a much lower population, construction and industrial activity and vehicles, the air quality is expected to be much better than that of Thimphu. Hence air quality is not a concern in project area. These will be within stipulated limits of NEC, if measured. The project will not add the air pollutants in the ambient air; therefore, ambient air quality is not a concern.

4.1.5 Surface Water Sources and Quality

60. Each Dzongkhag has perennial rivers and local streams for the drainage of

the area. The prominent stream are Maokhola Chu , Shetikahray Chu and Dawalakhola Chu in Sarpang, Wong Chu in Chukha, Paro Chu in Paro, Phegu Chu, Tong Chu, Pho Chu, Mochu and Punatsang Chu in Gasa, Tsang Chu, Dang Chu, Kisona Chu and Hangra Chu in Wangduephodrang, Pho Chu, Mochu, and Sankosh Chu in Punakha, Haa is also drained by tributaries of Wong Chu, Dagana is drained by Wong Chu tributaries and Trongsa by river system mentioned for Wangdue. Torsa River drains Samtse Dzongkhag. Figure-2 below shows River System of Bhutan. In addition to these rivers there are smaller streams that join these rivers in the respective Dzongkhags. During the monsoons the heavy rains often cause flash floods in the valleys which are very vulnerable to erosion due cultivation. Construction of embankments in the erosion prone areas and river training works are being undertaken as protection measures. Surface water quality data for project area is not available, but it is pristine as there are no pollution discharge sources to these rivers.

Figure 2: Major Rivers of Bhutan

4.1.6 Groundwater Sources and Quality

61. There are no data available on the groundwater. Ground water resources are also abundant with springs emerging from basement rocks, old landslides and fluvial deposits. Groundwater in landslide and alluvial deposits has been estimated at an exploitable rate of 3 liters/ second/km2. Currently water quality monitoring is only conducted in the four major river system of Bhutan only. Generally the state of Bhutan’s ground water quality is still good but with expanding settlement along rivers there are localized pollution problems due to expanding settlement along rivers. The SHLS project will not require any ground water for construction or operation.

4.1.7 Noise Levels in Project Area

62. Data on measured noise levels is not available in the project area as currently NEC is generating noise levels at Phuentsholing and Thimphu. Major contributors to the ambient noise levels are commercial activities and vehicular traffic. In project area these activities are not much therefore noise is expected within the stipulated limits of NEC for Rural and Residential areas (55 dB(A) during day, and 45 dB(A) during night). The SHLS project will not cause any noise generating activities during construction and operation.

4.1.8 Aquatic Environment

63. A total of 41 indigenous fish species are known to occur in rivers and lakes of Bhutan. This includes eight exotic species like the coldwater trout, and seven species introduced for warm water aquaculture namely Grass carp (Ctenopharyngodon idella), Common carp (Cyprinus carpio), Silver carp (Hypothalmicthys molitrix), Catla (Catla catla), Rohu (Labeo rohita), Mrigal (Cirrhius mrigala). Some of the fish species found in the river in Sarpang are Schizothorax progastus (Asla), Schizothorax moleworthii, Acrossocheilus hexagonolepis, Crossocheilus latius, Tor putitora (mahseer), Tor tor (mahseer), Barilius barna, Barilius bendelisis, Puntius macropogon, Puntius sophore, Puntius ticto, Puntius titus, Barbus spp., Labeo dero, Garra annandalei, Garra gotyla, Danio aequipinnatus, Danio dangila, Brachydanio rerio, Botia Dario, Rasbora daniconius, Noemacheilous botia, Batasio, Mystus bleekeri, Mystus vittatus, Ompok pabda, Channa striatus and Mastacembelus armatus. The same species will be prevalent in the river system described above.

4.2 Ecological Resources

4.2.1 Protected Areas

64. Part of the ten Dzongkhags selected for SHLS installation fall in 6 protected areas. The names of these areas are Jigme Singye Wangchuk National Park (JSWNP), Royal Manas National Park (RMNP) , Philbsoo Wild Life Sanctuary (PWLS),Torsa Strict Nature Reserve(TNSR), Black Mountain National Park(BMNP), and Jigme Dorji National Park (JDNP). The locations of SHLS installations in the habitation area of these protected areas are not anticipated as one of the criteria of installation is good connectivity to the habitations. This criterion has been kept for effective maintenance in the post installation period. The brief description of these protected areas is given below just for information purpose. Figure-3 shows the map of protected areas. Figure 3: National Protected Areas and Biological Corridors of Bhutan

(a) Jigme Singye Wangchuck National Park

65. Jigme Sigye Wangchuck National Park (1,723 km2) is located in the central part of the country and connected to the Royal Manas National Park to the south. It encompasses parts of Trongsa, Zhemgang, Wangdue Phodrang, Tsirang and Sarpang dzongkhas. With altitudes ranging from 1,500 m to 4,500 m, this park also covers a wide range of ecosystems from permanent ice peaks, alpine lakes and pasture, conifer and broadleaf forests. The Park is famous as the habitat of the threatened migratory Black-necked cranes, the White-bellied heron, Rufous-nevked hornbill, Satyrtragapan, and Ward’s trogon. About 22 mammal species have been recorded in this park including several endangered species such as Tiger, Common Leopard, Clouded Leopard, Himalayan Black Bear, Musk Deer, Red Panda and Golden Langur. As much as 395 species of birds have been recorded during surveys of which a number are of conservation interest. Around 5,000-6,000 persons live within the park and another 10,000-15,000 persons live within 3-5 km of the park boundary (NCD, 2004).

(b) Royal Manas National Park (1,023 km2)

66. This national park is adjacent to Jigme Singye Wangchuck National Park and to the south it forms a trans-frontier reserve with India’s Manas. It provides habitat for globally endangered species such as tiger, rhinoceros, elephant, leopard, gaur and pigmy hog and endemic species such as golden langur. 362 species of birds occur in the park, nine species of which are globally threatened (NCS, 1995). Parts of Sarpang fall within this Natinal Park, Pemagatshel Dzongkhang falls in the buffer.

67. The Royal Manas National Park is one of the most well known national parks in Bhutan. It is famous because it forms a trans-frontier reserve with india’s Manas, which is world heritage site. At the same time, being adjacent to Jigme Singye Wangchuck National Park, it provides contiguous habitat for wildlife from the southern foothills to central Bhutan.

68. Long before it was gazetted as a national park, Royal Manas was maintained as a Wildlife Preserve by the Government for many years since 1966. Later it was upgraded to a National Park in 1993 and expanded. The Royal Manas National Park with an area of 1,023 km2 covers parts of Sarpang (Taklai Gewog) and Zhemgang Dzongkhags.

69. The Royal Manas National Park is the richest park along the subtropical ecosystems of the country with the highest area under broadleaf forest. Combined with the Jigme Singye Wangchuck National Park and Indian Manas in the South, it created a unique protected area complex across two countries. There are estimated 3,250 people residing inside the park.

70. This 278 km2 Wildlife Sanctuary encompasses parts of Senge Gewog of Sarpang dzongkhag. It borders the Indian state of Assam to the south, Tsirang Dzongkhag to the north. Presently there is no conservation management plan as this sanctuary is targeted for operationalization during

the forthcoming 10th FYP. It is currently managed by the Phibsoo range under Sarpang Divisional Forest Office. The Sanctuary is unique for its natural Sal (Shorea robusta) forest and for its spotted deer (Axis axis). Other significant mammals species found here are Tiger, Asian Elephant and Golden Langur (NCD, 2004). The buffer of the Sanctuary is almost uninhabited. Since the Sanctuary is yet to be operationalized, the exact boundary of the Sanctuary is yet to be determined.

(d) Torsa Strict Nature Reserve (TSNR)

71. The Torsa Strict Nature Reserve extends over 64960 ha, falling in two Dzongkhags (Haa and Paro). The main activity is research on the biodiversity of this protected area. The reserve displays a variety of landscapes and ecosystems of westernmost temperate forest from broadleaved forests to alpine parks including the small lakes of Sinchulungpa. This area has no human habitation and is a military security area near the Chinese border.

(f) Black Mountain National Park (BMNP)

72. The Black Mountain National Park is contained in three Dzongkhags (Zhemgang, Wangdue, and Trongsa) over an area of 172,760 ha. It represents a wide range of ecosystems and habitat types including permanent snow-covered areas near Dorshingla Peak (4,925 m), alpine lakes and pastures and coniferous and broad-leaved forests. The reserve constitutes the largest and richest temperate forest nature reserve in the entire Himalayas. The combined area of BMNP and RMNP supports maximum number (449) of bird species among the Asian reserves. The grazing of Yaks in summer on the northern alpine areas of the park is the only major intervention in the park.

(g) Jigme Dorji National Park (JDNP)

73. Jigme Dorji National Park covers 434,950 ha in four Dzongkhags (Thimpu, Paro, Gasa, and Punakha).This park has the largest protected area and is natural conservatory of glaciers, alpine meadows and scrub lands, sub-alpine and temperate conifer forests, warm and cool temperate broad-leaved forests, major rivers and streams, and the flora and fauna that inhabit these ecosystems. The park harbours endangered or extinct species including the Takin, Snow leopard, blue sheep, musk deer, Himalayan black bear, marmots, red panda, tiger and several species of pheasants.

74. Several plants found in the park are valuable cultivars, useful for horticulture and have commercial, medicinal, traditional and religious value. Over 300 plants are currently used to make indigenous medicine, most of which are found in the park.

4.2.2 Rare or Endangered Species

75. Some notable species found protected areas mentioned above are the Tiger (Panthera tigris), Elephant (Elephas maximus), Himalayan black bear (Selenarctors thibetanus), Sloth bear (Melursus ursinus), Leopard (Panthera

pardus), Gaur (Bos gaurus) and endemic species such as Golden Langur (Presbytis geei) and Spotted Deer (Axis axis).

76. Species such as the One-horned Rhinocers (Rhinocerors unicornis), Hispid Hare (Caprolagus hispidus) and Pygmy Hog (Sus salvinus) are said to exist in Royal Manas but have rarely been sighted. Other commonly species include Barking Deer (Muntiacornis sumatraensis) Indian Porcupine (Hysterix indica) and Goral (Naemorhedus goral). In addition to this there are a number of snake species.

Table 3: Endangered or Vulnerable Species Expected in Protected Areas

Common Name Scientific IUCN Red Bhutanes Name List protection Category Category Golden Langur Presbytis geei EN Schedule I Sloth Bear Melursus VU Schedule I ursinus Himalayan black Selenarctors VU Schedule I Bear thibetanus Clouded Leopard Neofelis pardus V Schedule I Common Leopard Panthera LC Schedule I pardus Tiger Panthera tigris EN Schedule I Asian Elephant Elephas E Schedule I maximus Leopard Cat Prionailurus LC Schedule I bengalensis Capped Langur Trachypithecus EN Schedule I pileatus Marbled Cat Felis VU Schedule I marmorata Wild Dog Cuon alpines EN Schedule I Gaur Bos gaurus V Schedule I Spotted Deer Axis axis EN Schedule I EN = Endangered, VU = Vulnerable, LR = Lower Risk, NT = Near threatened, LC = Least Concern (IUCN);

4.2.3 Biodiversity

77. The dominant forest type in all 10 Dzongkhags is broadleaf. In forest areas of Dzongkhags broad leaf forest ranges from 30-95%. The second dominant

category of forest is mixed conifer forest. The forests in the protected areas mainly comprise of Subtropical forests, warm broadleaved forest and cool broadleaved forests. Trees commonly found in the Subtropical zone which extends 200 up to 1000 m include Bombax ceiba, Ailanthus grandis, Dillenia pentagyna, Duabange grandiflora, Schime wallichii, Tetrameles nudiflora, Mangifere sylvatica, terminalia myriocarpa, Ostodes paniculata and species of Musa, Polyalthia, Castanopsis, Cinnamomum, Fisus and Grewia.

78. The warm brodleaved zone extends from the elevation of 1,000 to 2,000 m and comprises of species such as Alnus nepalensis, Macaranga spp. Altinga Excelsa, Castanopsis indica, Michelia excels, Bombax spp., Ficus spp., Terminalia spp., Acacaia., Dalbergia., Mussaendra roxburghii Rhaphidophora species, Maesa spp., Albizzia spp., Dichroa febrifuga and Engellhardia spicata.

79. The cool broadleaved forest occur from 2,000 to 5000 m and comprise mainly of Betula alnodes, Elastotema spp., Symplocus spp., Lindera pulcherrima, Persea spp., Exbuckllandia populnea., Cantanopsis hystrix, Lithocarpus elegans, Eurya spp.,

4.2.4 Wildlife

80. A wide variety of fauna inhabits the forest areas including the protected species listed in Table -3. A list of avifauna found or expected to be found Dzongkhags of SHLS project is given in Table-4. The Table-5 gives the list of protected species given in Forest and Nature Conservation Act 1995. No endangered species of flora fauna is anticipated at villages where SHLS are anticipated to be installed. These areas are already affected by human activities due to the transportation from/ to their villages. Therefore, no significant impact on flora, fauna or avifauna is expected due to the project activities.

Table 4: Avifauna of Project Areas (Based on Discussion with Forest officials and Published Sources)

S. No. Common name Scientific Name 1 Ashy Drongo Dicrurus leucophaeus 2 Ashy Woodswallow Artamus fuscus 3 Asian barred Owlet Glaucidium cuculodies 4 Asian Palm Swift Cypsiurus balasiensis 5 Asian Paradise-flycatcher Tersiphone paradisi 6 Barred Cuckoo Dove Macropygia unchall 7 Bar-winged Flycatcher-Shrike Hemipus picatus 8 Block Stork Ciconia nigra 9 Black-backed forktail Enicurus picatus 10 Black-crested Bulbul Pycnonotus melanicterus 11 Black-throated Sunbird Aethopyga saturate 12 Blue-throated Barbet Megalaima asisatica

S. No. Common name Scientific Name 13 Blue-winged Minla Minla cyanouroptera 14 Blyth’s Leaf Warbler Phylloscopus reguloides 15 Bronzed Drongo Dicrurus aeneus 16 Chestnut-bellied Nuthatch Sitta castanea 17 Chestnut-headed Bee-eater Merops leschhenaulti 18 Chestnut-tailed starling Sturnus malabaricus 19 Collared Owlet Glaucisium brodiei 20 Common Myna Acridotheres tristis 21 Common Stonechat Saxicola torquata 22 Common Tailobird Orthotomus sutorius 23 Crow-billed drongo Dicrurus annectans 24 Dollarbird Eurystomus orientails 25 Drongo Cuckoo Surniculus lugubris 26 Emerald Dove Chalcophas indica 27 Eurasian Tree Sparrow Passer montanus 28 Golden-fronted Leafbird Chalophaps indica 29 Great Barbet Megalamia virens 30 Great Hornbill Buceros bicornis* 31 Greater Neclaced Chrysocolaptes lucidus Laughingthrush 32 Greater Racket-tailed Drongo Garrulax pectoralis 33 Greater Yellownape Dicrurus pectoralis 34 Grey Wagtail Picus flavinucha 35 Grey Wagtail Motacilla cinerea 36 Grey-Backed Shrike Lanius tephronotus 37 Hill Myna Gracula religiosa 38 House Crow Corvus splendens 39 Indian Pond Heron Ardeola grayii 40 Large Woodshrike Tephrodornis gularis 41 Large-billed Crow Corvus macrorhynchos 42 Lesser Racket-Tailed Drongo Dicrurus remifer 43 Lesser Yellownape Picus chlorophus 44 Long-tailed Broadbill Pasarious dalhousiae 45 Long-tailed Shrike Lanius schach 46 Mountain Imperial Pigeon Ducula badia 47 Mountain Scops Owl Otus spilocephalus 48 Orange-bellied Leafbird Chloropsis hardwickii 49 Oriented Honey-buzzard Pernis Ptilorhyncus

S. No. Common name Scientific Name 50 Oriental Magpie Robin Cospsychus saularies 51 Oriented pied Hornbill Anthraceros albirostris 52 Osprey Pandion haliaetus 53 Pale-chinned Flycatcher Cyornis poligenys 54 Pin-tailed Green Pingeon Treron apicauda 55 Plain Flowerpecker Dicaeum concolor 56 Red-headed Trogon Harpactes erythrocephalus 57 Red-rumped Swallow Hirundo daurica 58 Red-tailed Minla Minla ignotincta 59 Red-vented Bulbul Pycnonotus cafer 60 River Lapwing Vanellus duvaucelii 61 Rifous Woodpecker Celeus brachyurus 62 Rufous-bellied Niltava Niltava sundara 63 Ruffous-necked Hornbill Aceros nipalensis 64 Scaly Thrush Zoothera dauma 65 Scarlet minivet Pericrocotus flammeus 66 Slaty-blue Flycatcher Ficedula tricolor 67 Small Niltava Niltava macgrioriae 68 Snowy-browed Flycatcher Ficedula hyperythra 69 Spangled Drongo Dicrurus hattentottus 70 Spotted Dove Streptoplia chinenesis 71 Streaked Spiderhunter Arachnotherea magna 72 White Wagtail Motacilla alba 73 White-rumped Shama Copsychus malabaricus 74 White-throted Kingfisher Halcyon smymensis 75 Wreathed Hornbill Aceros undulates 76 Yellow-bellied Fantail Rhipidura hypoxantha * Globally near threatened species.

Table 5: Species listed in the Forest and Nature Conservation Act Schedule – IA - Protected wildlife Common Name Scientific Name Asian Elephant Elephus maximus Clouded leopard Neofelis nebulosa Golden Langur Presbytis geei Musk Deer Moschus Chrysogaster Pangolin Manis crassicaudata Pigmy Hog Sus sylvanicus

Common Name Scientific Name Snow Leopard Panthera unica Takin Budorcas taxicolor Tiger Panthera tigris Wild Buffalo Bubalus bubalis Golden Masheer Tor tor Spotted Deer Axis axis Gaur Bos gaurus Leopard Panthera pardus Leopard Cat Felis bengalensis Himalayan Black Selenarctos thibetanus Bear Red Panda Ailurus fulgens Serow Capricirnis sumatraensis Protected Birds Common Name Scientific Name Black-Nacked Crane Grus nigricollis Monal Pheasant Lophophorus impejenus Peacock Pheasant Polyplectron bicalcaratum Raven Corvus corax Rufous-Necked Aceros nepalensis Hornbill Schedule – IB : Protected Plant Species Local Name Common Name Botanical Name Agar/ agaru Eagle Wood Aquilaria malaccensis Yartsa-guenboop Chinese Caterpillar Cordyceps sinensis Pang-gen metog - Gentiana creassuloides - Snow Down Lily Llyodia yummanesis Tsher-ngeon Blue Poppy Meconopisis grandis Kirang-shing Yew Taxus baccata Bhreeng-geeradza - Panax pseudo-ginseng Ginseng

4.3 Economic Development Resources

4.3.1 Land use, Industry and agriculture

81. The predominant land use in project area is under forest. The average % of forest area in each Dzongkhag is 60% except Chukha and Dagana where forest percentages are 82 and 80 % respectively.The cultivable area is less

than 8% in all ten Dzongkhags. The percentage of area under settlement is about 0.3%. The area under pastures is around 4%. Balance land use is in water bodies, and Rocky area. The area under settlement is very less due to the fact that population density of the country is 16 persons per square km. Due to the flat terrain, fertile sedimentary soil layers, and suitable climatic condition, most of the arable wetland is presently under rice cultivation in southern and central Dzongkhags namely Sarpang, Samtse, Chukha,Paro, Punakha and Wangduephodrang and Dagana. Due to its high production of rice, Sarpang is known as the ‘Rice bowl of Bhutan’.

82. Major crops produced in project area include maize, wheat, buckwheat, barley, mustard, finger millet and foxtail millet along with a wide variety of green vegetables.Potato producing areas are Haa and Paro. While orange is grown in almost all southern Dzongkhags of the country, cardamom, areca nut, ginger, guava, lemon, banana and mango are also grown extensively in plain areas close to Indian border.

83. Almost every household in all 10 Dzongkhags owns some livestock mostly local breeds to meet their need for dairy products such as milk, butter, cheese, meat and manure. The livestock also play very important role on the rural areas by providing draught power in the absence of mechanized farming. For those villages near the towns, any surplus farm products are taken to towns for sale.

84. Most of the existing industrial establishments in Bhutan are small scale or cottage industries. In project area there are industries in Samtse and Sarpang and Chukha. Phuentsholing the biggest industrial area is located in Chukha. There is good growth potential for industries in Gelephu. A new airport is planned at Gelephu. Two major hydro power project of the country Chukha Hydro Power Ltd. and Tala Hydro Power Ltd. are located in Chukha Dzongkhag.

4.3.2 Administrative Infrastructure and Community Facilities

85. All district head quarters in the project area namely Chukha, Sarpang, Dagana, Damphu, Gasa, Haa,Paro,Punakha,Trongsa, Phuentsholing and Wangdue have administrative offices such as Forest, Revenue, court, etc. These also have amenities such as bank, post office and communication centers.

86. Educational facilities (schools) reported in Chukha, Dagana, Gasa,Haa, Paro, Punakha, Samtse, Sarpang, Trongsa and Wangdue Phodrang are 36,4,8,23,22,16,13,18,16 and 36 respectively. The health facilities are available in all 10 Dzongkhags. These facilities include referral hospitals, basic health units (BHU), and outreach clinics e.g. Chukha Dozonkhag has 3 hospitals and 9 basic health units and 28 outreach clinics,Wangdue Dzongkhags has 10 basic health units and 33 outreach clinics. Trongsa Dzongkhag has 5 basic health units and 21 outreach clinics,Gasa Dzongkhag has 4 basic health units and 8 outreach clinics. Punakha has 2 Basic Health Units, 3 out of reach clinics and Paro has one referral hospital,12 basic health units and 26 out of reach clinics. Livestock Extension Centre (LEC), Agriculture Extension Centre (AEC), and Rural Water Supply Schemes

(RWSS) are also there in each Dzongkhag.

4.3.3 Transportation

87. Transportation facilities in all Dzongkhags are through road and mule tracks. Remote locations on high elevations are connected through mule track. The only international airport of the country is in Paro Dzongkhag at Paro. There is no rail head in any of the Dzongkhags. One airport is proposed at Gelephu in Sarpang Dzongkhag.

4.3.4 Electricity and Communication

88. The household close to Dzongkhag head quarters are electrified. As per information available on Dzongkhag web site number of house hold electrified are 1563 in Samtse, 2197 in Sarpang, 10323 in Chukha, and 1490 in Wangdue Phodrang. In other Dzongkhags exact number of household electrified is not known but it is believed based on discussion with RED that about 70% households are electrified.

89. All Dzongkhag head quarters are connected by telephone. All Dzongkhag towns have mobile connectivity.

90. Telephone exchanges are there at every Dzongkhag head quarters.

4.3.5 Tourism

91. Before the 1970’s only the Royal family had the authority to issue invitations to Bhutan, so almost all foreign visitors were Royal guests. The first time a large number of foreign visitors entered the kingdom was for the coronation of the fourth king in 1974, and this was followed soon after by the first paying tourists. Paro airport opened in 1983, and the newly-formed national airline, Durk Air started operating flights to Kolkata. Tourism grew gradually, and in 1991 the industry was privatized, and numerous tourist agencies were established. Visitor numbers have continued to rise, particularly over the past few years, despite the requirement for all tourists to pay a non-refundable daily tariff of US $200 to the tour operator, for the cost of accommodation, food and internal travel. Tourism is now the third largest provider of foreign exchange in Bhutan, earning US $ 18.5 million in 2005 with 13,600 visitors.

92. The majority of tourists visit the Dzonghags with tourist resources such as Paro, Punuakha, and Wangdue Phodrang, which account for over 77% of the total bed nights. Balance 7 Dzongkhags have very poor tourism potential due to poor infrastructure facilities.

93. Gasa is also a popular trekking destination because it has a number of trekking routes, such as the 24 day Snowman trek in Lunana, the 2 week Lingshi-Laya-Gasa trek starting from Paro and ending in Punakha, the Gasa- Laya trek and the 2 week Masagang trek. Out of the 27,636 (TCB, 2008) tourists that visited the country last year, only 4.4% of all the visitors visited solely for Trekking. During this year, there were approximately 400 tourists that travelled through Gasa. About 70 of them were visitors to the Gasa Tshachu (hot spring). The Tshacu is also very popular among locals as well

as people from other parts of the country who visit the hot springs for its medicinal and curative attributes.

4.4 Social and Cultural Resources

4.4.1 Demography

94. The population of Bhutan includes many ethnic groups such as the Sharchops from the east, Ngalongs from the west, Khengpas from the central region, nomads from the north and Lhotshampas from the south. Because of the mix of ethnicities a wide variety of dialects is spoken, of which Dzongkha, Khengkha, Sharchop and various dialects of Nepali are the most common. The majority of the population is Buddhist (around 70%) and the remainder are mainly Hindu, mostly in the southern areas.

95. The project area has a sex ratio of 1:1. In project area about 70% of the population is rural residents while 30% are urban dwellers. The average number of family members in each household is 4.7. The employment rate is about 34%. Around 73% of the households in the Dzongkhag own land, 57% own their home, 8% own their own business and 7% own a vehicle.

4.4.2 History and Cultural

96. There are few culturally important monasteries and other important culture structures in Wanagdue, Punakha and Paro. In Paro Takshtang monastery is very famous and a tourist destination. Kichu Lakhang is also very famous. There are a few culturally significant sites in Wangdue. The Dzong located at the junction of the Pune Tsang Chu and the Dangchu was founded by Zhabdrung Ngawng Namgyal in 1638. The Gangtey Goenpa monastery built in the 17th centry is the Nyingmapa monastery in western Bhutan. It was founded by the grandson of Pema lingpa, Gyalse Pema Thinley in 1613 and later was expanded by Tenzin Legpau Dhendup. The Bey Langdra Nye is located in the center of a ridge at Bey Yul in Kazhi geog. It is famous as the site where Guru Rinpoche is said to have mediated for 7 days as well as suppressed the spirits that came to attack him.

97. Punakha Dzongkhag is significant historically as the place of enthronement for the first hereditary Monarch, King Ugyen Wangchuck on 17 December 1907. It served as the winter capital till 1955 and Punakha Dzong continues to be the winter residence of the central Monk Body. The Pungthang Dechen Phodrang in Punakha Dzongkhang was constructed by Zhabdrung Ngawang Namgyel in 1637 and is renowned for its historical importance.

98. The Dzongkhag has government owned, public as well as private Lhakhangs. These include the famous Talo Lhakhang, the Bjaching Karm nunnery and the newly built Lhakhang at Kabjisa.

99. In Bhutan traditions are followed religiously. The male and female wear their traditional dress Kho and Kira. In almost all ten Dzongkhags of project area traditional dress is worned. In Gasa Dzongkhag Layaps (from Laya) and Lunaps (from Lunana) are unique because they have their own dress, language, culture and tradition. The communities in Laya and Lunana

Gewogs in Gasa Dzongkhag are semi-nomadic Yak herders who spend time between the villages and the high altitude Yak herding camps. Cheese and butter are prepared and stored to be sold or bartered either in Punakha or across the border. They have a distinct traditional dress made of yak wool that is suitable for the extremely cold and harsh winters that occur for 4-5 months. Due to the snow the high mountain passes are inaccessible causing much hardship for the communities and their yaks. During the winter months, many of the households migrate to lower regions where they purchase their food stock for the rest of the year.

100. In other Dzongkhags there are no culturally significant structures. Most of the larger villages have a temple, and there are smaller Buddhist shrines both inside and outside inhabited areas, and various other places or objects that are of significance to the community, including particular trees, river and other locations.

Chapter - 5

Anticipated Environmental Impacts and Mitigating Measures

5.0 Anticipated Environmental Impacts and Mitigating Measures

101. This chapter, based on the baseline environmental features of SLHS project areas described in Chapter-4, presents anticipated environmental impacts and mitigation measures during installation and operation phases. Categorization of the sub-project has been undertaken using Rapid Environmental Assessment (REA) checklist. REA uses sector-specific checklists that are developed based on the ADB’s past knowledge and experience. These checklists consist of questions relating to (i) the sensitivity and vulnerability of environmental resources in the project area, and (ii) the potential for the project to cause significant adverse environmental impacts. Based on REA checklist this project falls in category B.

5.1 Environmentally Insignificant Issues

102. Environmentally insignificant issues for the proposed project are identified as under:

103. Though the Dzongkhags in which SLHS are located have forest areas, protected areas and local wild life, yet the SHLS project is not going to impinge on them as SHLS installation will be located in the residential houses. These habitations will be away from the environmentally sensitive features such as National Parks, Wild Life Sanctuaries Natural Reserve, and Biological Corridors.

104. Based on checklist following impacts have been regarded as insignificant and reasons are given hereunder:  Physical Resources- Geology, climate, ambient air quality, Surface water sources and quality, Ground water sources and quality and Noise levels, Rural services/utilities(water supply, electricity, and telephone lines, etc.)  Ecological Resources- Protected areas, Biodiversity, rare and endangered species, wild life, and biodiversity.  Economic Development Resources- Land use, industries, agriculture, tourism, transportation, electricity and communication, and administrative infrastructure  Social and Cultural Resources- Demography, History and culture, involuntary resettlement

5.2 Environmentally Significant Issues /Valued Environmental Component (VEC)

105. Based on the REA checklist, field visit and discussions with various government officials, following issues have been identified as valued environmental components and discussed below

 Topography and Soil

106. Since, the impacts are associated with different phases of the project, these have been discussed under each identified VEC phase-wise and the

mitigation measures have been proposed for each of the potential adverse impacts.

5.3 Topography and Soil- Environmental Impacts and Mitigations

5.3.1 Impacts

(a) Installation Phase

107. In the installation phase of the SHLS at individual household, there will not be significant impact on topography. The PV panel will be visible on the roof top of house. This small change in topography will be visible in the habitation. This change will be permanent. In installation phase there will be no impact on soil quality of the area.

(b) Post Installation (Operation Phase) Phase

108. During operation phase of the SHLS project, change in topography will be in the form of PV panel visible at roof top of houses. This impact will be permanent.

109. During operation phase battery of SHLS will have to be replaced after 3- 5 years. This battery contains heavy metal lead and sulphuric acid. If the batteries are discarded in the surroundings then there will be soil contamination with lead and sulphuric acid in the area.

5.3.2 Mitigation Measures

(a) Installation Phase

110. Since an impact on soil has not been identified, therefore, no mitigation measures are warranted. The change in topography (due to visibility of PV Panel) will not be pinching to the eyes as humans are habitual to see utility poles, communication towers, etc. Hence no mitigation measures are warranted.

(b) Operation Phase

111. Bhutan Power Corporation (BPC) is operating about 150 customer service centers at village level. The implementing agency of SHL system project is Renewable Energy Division (RED) of Department of Energy in MOEA. The RED will have a memorandum of understanding with BPC for operation and maintenance of SHLS. The village technician of BPC will provide operation and maintenance services to SHL system. If battery is discharged and to be replaced the village technician will arrange local labour to carry the used battery to BPC’s nearest customer service centre. DOE SHL system Operation and Maintenance manger will arrange a truck to pick up used batteries stored at BPC’s customer service centers periodically. These batteries will be shipped to Phuentsholing. After this DOE/RED will arrange to send these batteries to authorized battery recyclers in India. Hence there will be a leak proof battery collection system. Hence no impacts are anticipated on soils and environment of the project area.

112. In case there is leakage of acid from the used battery during transport of the used batteries, the spilled acid should be diluted with abundant quantities of water. The village technicians and transporter should be trained for such accidental situations.

Since minor visible changes in topography are permanent and not pinching to the eyes therefore no mitigations are warranted for this.

5.4 Human Health

5.4.1 Impacts

Installation Phase

113. During installation phase no adverse impacts on health will be there as there will not be generation of emissions, effluents or solid wastes.

Operation Phase

114. During operation phase no negative impacts are anticipated. There will be positive impact on health of population as currently they are using either kerosene or the candles for lighting. In both cases there is generation of smoke. This smoke has adverse impact on health. Due to SHLS installation there will be no generation of smoke and positive impact on health are anticipated.

5.4.2 Mitigation Measures

(a) Construction Phase

115. Since no adverse impacts have been identified, therefore, no mitigation measures are warranted.

(b) Operation Phase

116. Since no adverse impacts have been identified, therefore, no mitigation measures are warranted.

5.5 Biodiversity

5.5.1 Impacts

(a) Installation Phase

117. No impact on biodiversity is expected during installation phase as there will not be cutting of trees in open area, protected areas and Forests.

(b) Operation Phase

118. No impact on biodiversity is anticipated during operation phase as there is no generation of emissions, effluents or solid wastes. There is no generation of noise also due to functioning of SHLS.

5.5.2 Mitigation Measures

119. Since no impacts have been identified during installation and operation phases, therefore, no mitigation measures are warranted.

5.6 Positive Social and Environmental Benefits

120. The proposed SHLS project will use solar energy for lighting in rural house hold. The solar energy is a clean, sustainable and renewable energy. The project will have a host of environmental and social benefits, including:

 Use of clean and sustainable solar energy;  Reduction in Kerosene and candle consumption for lighting;  Reduction in green house emissions as a consequence of reduction in kerosene consumption;  No social issues and no cutting of trees;  Cost effective;  Direct and indirect Employment opportunities; and  No loss of energy in transmission.

5.7 Conclusion

121. Based on the above discussion it is concluded that negative impacts due to implementation of SHLS project are limited. Impacts are anticipated during operation due to replacement of used batteries after 3-5 years. These will be mitigated through leak proof collection system.

122. The DOE SHL System Operation and maintenance manager will be responsible for operation and maintenance of SHL system and leak proof collection system of batteries. Hence, no adverse impacts are anticipated.

Chapter – 6 Analysis of Alternatives

6.0 Analysis of Alternatives

123. A number of alternatives were considered for SHLS project. These included a) No Project Scenario (No SHLS installation), b) Project Scenario and c) Use of other form of energy such as installation of small hydropower for lighting. Each alternative is discussed below.

6.1 No Project Scenario

124. The SHLS project has insignificant environmental impacts. The RGOB has set a target of the year 2013 for electricity to all. In many rural areas extension of grid is not possible due to techno-economic reasons and terrain problems. In case project is not implemented then achievement of set target of RGOB for electrification will be impossible. The non availability of electricity will be an impediment in economic growth of rural poor. Non implementation of project has no environmental advantages too. Currently kerosene/candles used by rural population lighting results in green house gas emissions and smoke generation. Generation of both of these is not good for environment. Hence no project scenario will be detrimental to rural population, economic growth and environment.

6.2 Project Scenario

125. The project scenario will provide clean form of energy in the rural areas and will result in reduction of green house emissions and smoke. There will be positive impact on health of people due to use of solar energy for lighting. There will be economic development due availability of solar lighting. The rural children will get good quality light for study. The working hours for domestic works for home makers will increase. This will give them more time to work in agriculture fields. This will lead the country to the path of growth. The project will help to achieve the target of RGOB for 100 % electrification in the country

6.3 To provide other form of Energy such as small Hydropower Projects

126. Hydro energy is also a clean form of energy. But installation of small hydro in selected Dzongkhags of solar is not possible due to terrain conditions and techno economic reasons. Most of the selected villages for SHLS installation are located in difficult terrain where grid cannot be extended due to techno- economic reasons.

6.4 Comparison of Alternatives

127. Based on the discussion above all three options have been compared in the Table-6 below:

34 Table 1: Comparison of Alternatives

Parameters No Project Project Scenario Other form of Energy Scenario (Small Hydro) Economic Use of  SHLS will cost  The installation of cost kerosene/candle about Nu 30,000 small hydro is not s is financially  The RGOB is possible in very cheap. installing the Dzongkhags SHLS free of selected for SHLS cost, but during due to techno- operation phase economic reasons there will be charge of 10% from the owners of SHLS system Developme Village/Gewog  Community will  Community will be ntal considered be considered considered impacts & underdeveloped developed developed. people’s perception Social The lighting is  Clean and  Hydropower is also benefit poor in kerosene renewable clean energy. But in and candles energy the Dzongkhags usages. This  The light quality selected for SHLS it poor lighting will will be good for is not feasible to cause problem in study and other install small hydro. working and domestic  Electricity supply at studying activities many villages is  It can be also not possible installed due to difficulty in anywhere extending grid without any because of difficult problem. terrain conditions  No significant recurring cost as O&M will be

35 Parameters No Project Project Scenario Other form of Energy Scenario (Small Hydro) subsidized Environme There will be  No  Extending grid will ntal continued environmental involve cutting of impacts impacts due to impacts trees in the Right of emissions of  Green house Way of grid. This green house gas emissions will have negative gases due to will reduce impacts on forests. burning of fossil  Effective and But in the selected fuels. Hence leak proof villages grid negative impacts battery recycle extension is not on environment planned. possible due to difficult terrain and techno-economic reasons. Health Negative impact  Positive impact  Positive impact on on health due to on health as health as clean smoke solar energy is form of energy will generation a clean form of reduce smoke energy generation in the house.

6.5 Conclusion

128. Based on the discussion above it is concluded that installation of SHLS for lighting in selected Dzongkhags in Central, Southern and Western Bhutan is best alternative among all other alternatives. The SHLS will have better impact on quality of life of family owning it. The successful running will lead to multiplication in other parts of country. There will be exploration of clean form of energy for the domestic lighting in rural areas.

Chapter – 7 Information Disclosure and Consultations

7.0 Information Disclosure and Consultations

7.1 Introduction

129. The successful implementation of the project requires co-ordinated efforts of all stakeholders at different levels. Hence, consultation at different levels was used as a tool to inform and educate stakeholders about the proposed action both before and after the project implementation decisions were made. Public consultation was useful for gathering environmental data, understanding likely impacts and community’s needs and preferences.

130. Various alternatives could be evolved and sustainable mitigation measures could be formulated through consultations. It assisted in identification of the problems associated with the project as well as the needs of the population likely to be impacted (benefited in present case). This participatory process helped in convincing the people’s perception and enabled the participation of the local people in the decision making process. The involvement of the various stakeholders ensured that the targeted population and other stakeholders are informed consulted and are allowed to participate at various stages of project advancements.

7.2 Objectives

131. The main objective of the consultation process was to to inform the stake holders, seek their inputs and to maximize the benefits of the project. Other objectives of the consultation process were the following:

. To promote public awareness about the proposed SHLS project in the project area of 10 selected Dzongkhags; . To educate the communities/individuals about benefits of SHLS system; . To solicit the views of communities/individuals residing in targeted Dzongkhags on the solar energy; . To gather inputs from the targeted population/individuals for improvement in project configuration and implementation procedure; . To stimulate community self evaluation and analysis; and . To ensure lessening of public resistance to change by providing them a platform in the decision making process

7.3 Methodology Adopted for Public Consultations

7.3.1 Stages and Levels of Consultation

132. The consultations were taken up right from start of PPTA project to finalise the scope of project in all three components. For this project inception workshop was organised by the PPTA Consultants.

133. Public consultations have been held at three levels as follows:

. Local level Chiwog (village) level/Geog (Block) level in targeted

Dzongkhags for the establishment of SHLS. . Dzongkhag level consultations involving Dzongadag, local BPC officials , local forest department, Dzongkhag environmental officers; and . Institutional level consultations with National Environmental Commission(NEC), Bhutan Power Corporation Ltd., Department of Energy, JICA, ADB,etc.

Tools for Consultation

(i) Formal/Informal discussion

134. During visits to Gewogs in all Dzongkhags formal discussions have been held with Dzondags and informal discussion with locals and Gups (village heads)

135. A checklist of questions was kept ready and responses were elicited from people. The FGDs have been held in targeted Dzongkhags.

(ii) Institutional Level / Stake Holders Consultative Workshop (Inception Workshop)

136. The institutional level consultations were held with representatives of institutions having stakes in implementation of the project. The institutions contacted included NEC, BPC, Department of Energy (DOE), Department of Live Stocks( Ministry of Agriculture and Forests), Policy Planning Department MOEA

137. An inception workshop was organised on December 03, 2009 by the PPTA consultants and all institutional stakeholders were invited with a view to invite comments and suggestions on the all three components of the project.

7.3.2 Contents

138. The consultation with institutional officials focused on the following issues.

. Project description: - Need for renewable form of Energy from biogas, solar and wind . Advantages and low level of pollution(emissions/effluents/solid wastes) . The extent and nature of social and environmental impacts . People’s participation in planning, implementation and monitoring & evaluation stage.

7.4 Location Wise Summary of Consultations

139. The consultations at village levels and block levels were held in all 3 Dzongkhags. The details of discussion and views of participants are given below. The list of participants is available on request.

7.4.1 Public Consultation at Tongtsho village-Tseza Geog, Dagana Dzongkhag on 19th January 2010

140. Seven households participated in the public consultation. The households of Tongtsho were not happy in receiving solar home lighting systems as they preferred on-grid electricity connection. The participants also expressed concern on the feasibility of solar home lighting systems as the weather at Tongtsho is most of the time cloudy and under such a condition they are not sure whether a solar home lighting system would work in their village.

7.4.2 Public Consultation at Doban Geog, Sarpang Dzongkhag on 12th January 2010

141. Fifteen participants participated in the public consultation. Households’ preference was for on-grid electricity connection. However, after the consultant explained the technical and economic constraints on the part of the government, participants showed their satisfaction with solar home lighting systems but insisted that they should be installed free of cost to them. One more concern expressed by the participants was that the batteries would be expensive and difficult to transport in case of replacement.

7.4.3 Public Consultation at Thasa Village, Lajab Geog, Dagana Dzongkhag 23rd January 2010

142. Five households participated in the public consultation and expressed that they would prefer getting connected with electricity distribution lines rather than solar home lighting systems. Their concern with solar home lighting systems was operation and maintenance of the systems as none of the people in the village have experience in solar home lighting systems while some of them have not even seen a solar home lighting system that is functioning properly.

7.4.4 Public Consultation at Upper Majgaon village, Patalay Geog, Tsirang Dzongkhag on 28th January 2010

143. The four participants in the meeting raised their concern about the skills required to handle the solar home lighting systems. They indicated that were not choosy about solar home lighting systems verses on-grid electricity connection but were more concerned about replacement of batteries, handling the solar home lighting sets, disposing of the old batteries and taking care of the solar panels. They also stressed that the solar home lighting sets be provided free of cost to them. They also indicated they would be happier if the government can provide them with on-grid electricity connection if possible.

7.4.5 Public Consultation at Village Chota Tsirang/Sisty and Daragaon, Geog Sengye, Sarpang Dzongkhag on 15th January 2010

144. There were 20 households participating in the public consultation. The participants were concerned about the type of solar home lighting systems that they will be provided because some of the participants had witnessed defective solar home lighting systems elsewhere. They were of the view that if solar home lighting systems that may not work are provided to them, then

they rather prefer on-grid electricity connection. The participants also raised concerns about short supply of electricity during rainy and cloudy days and also the danger of the solar home lighting sets being stolen by the miscreants from across the border in India. Overall, they preferred on-grid electricity connection.

7.5 Addressal of Public Concerns in the Project Design

145. The project has tried its best to address the issues raised during the Public Consultations. Summary of issues raised and addressal has been given below in Table-7.

Table 7: Addressal of General Issues and Concerns under the Project

Issue/Concern Addressal under the Project There are clouds in most The consultants team has checked solar part of the year, insolation at Dagana Dzongkhag and available therefore, functioning solar insolation is sufficient of functioning of may be difficult (Issue SHLS raised at Dagana) Will prefer supply Extension of grid is not possible on account of through grid as it will be techno-economic reasons due to this SHLS are more reliable (Issue being installed to achieve 100 % rural raised at most of the electrification by 2013 location) Batteries of SHLS will The first installation of entire SLHS will be free of be costly and difficult to cost. The battery life is 3-5 years. The subsequent transport in case of battery replacement will be made available at replacement subsidized rates by RED. The O&M will be provided by BPC customer service centre. The village technician will arrange to pick up the battery to the nearest customer service centre Operation and The O&M will be provided by BPC customer maintenance will be a service centre. At Renewable Energy Department problem as people have (RED) there will be a full time operation and no experience and nor maintenance manager who will manage O&M of have seen any SLHS SHLS project with the help of BPC customer functioning service centre. Disposal of old The old batteries will be replaced by new ones batteries and taking care by village technicians. The old batteries will be of PV panel will be a transported to nearest BPC customer service problem centre. From customer service centre batteries will

Issue/Concern Addressal under the Project be lifted in a truck arranged by RED SHLS O&M manager for transportation to Phuentsholing for recycling Some people were The RED will procure all SHLS with good apprehensive that technical specifications mentioned in Chapter-3 defective SHLS may be and from a known manufacturer under warranty. provided and will not The question of defective SHLS does not arise. work

7.6 Conclusion

146. Based on the above discussion it is concluded that all concerns of the stakeholders have been taken into account in the project preparation. The suggestions of institutional stake holders have also been taken into account through inception workshop and through circulation of deliverables of consultants to all concerned departments of RGOB.

Chapter – 8 Grievance Redress Mechanism

8.0 Grievance Redress Mechanism

147. The SHLS project does not involve any acquisition of land and there is no generation of emissions, effluents or solid waste also. The public complaints on environmental impacts against the project are not anticipated as SHLS installation will be in the private house. RED will sign a Memorandum of understanding with BPC for O&M of SHLS in post installation phase. Currently BPC has 150 customer service centres across the country. All O&M complaints will be received at these customer service centres either in person or through communication. On receipt of complaints village technician will attend the complaints. All complaints will be resolved in time frame of 7 working days. At Department of Energy (DOE) –Renewable Energy Division (RED) there will be a dedicated SHLS O&M Program Manager. The complaints from BPC service centres will also be forwarded to O&M SHLS Program Manager at RED for his record and analysis. This manager will be the focal person to receive and resolve any grievances. The manager will resolve the problem within a period of 2 weeks. In case there are any unforeseen environment related complaints these will also be resolved by O&M SHLS program manager. The O&M SHLS program manager will also be responsible for EMP implementation. The RED will follow the open door policy to receive any suggestions to improve the functioning of SHLS. These suggestions will also be received at Customer Service Centres and office of SHLS at RED.

Chapter – 9 Institutional Requirements, Environmental Management and Monitoring Plan

9.0 Institutional Requirements, Environmental Management and Monitoring Plan

9.1 Institutional Requirements

148. The SHLS project will be implemented and monitored by the Renewable Energy Division (RED) under the Department of Energy (DOE) of Ministry of Economic Affairs hence RED will be the Implementation Agency (IA).

149. Department of Energy, Ministry of Economic Affairs will be the Executive Agency (EA). Responsibility of EMP implementation will lie with SHLS O&M Program Manager. This O&M Program Manager will be appointed by RED.

150. RED shall be responsible for ensuring compliance to environmental requirements of the ADB as well as National Environmental Commission (NEC). All reporting requirements will be done by SHLS O&M Program Manager.

151. Environmental Management Plan (EMP) will be a part of training program to be given by the RED to village technicians of BPC posted at Customer Service Centres of BPC across the country. The transporter of used battery collection system will also be given training for safe handling and transport of used batteries.

152. All the statutory clearances (at national, Dzongkhag and local levels) if required for the implementation of the SHLS would be obtained in compliance with the national/state/local laws and regulations and in accordance with ADB’s environmental policy and guidelines.

9.2 Environment Monitoring Plan

153. To ensure the effective implementation of mitigation measures and environmental management plan, during installation and operation phase of the SHLS project, it is essential that an effective Environmental Monitoring Plan be followed. This monitoring plan is given in Table 8.

154. The RED will have a SHLS Program operation and maintenance manager, who will also monitor the environmental management plan compliances. Hence O&M Program Manager will be a Designated Environmental officer in the SHLS project. During installation phase of SHLS the O&M Program Manager will train BPC village technicians and transporter of used batteries for safe handling and transport of used batteries.

155. During operation regular visits will be taken up by the village technicians to educate the rural population in day to day maintenance of SHLS. At the time of visit these technicians will also check charging capacity of battery. SHLS Program O&M manager will also visit the SHLS installed to seek the views of public and to see actual functioning of SHLS. The suggested visit frequency for O&M manager is quarterly.

Table 8: Environmental Monitoring Plan

Environmental Project stage Parameter Location Duration / Implementation Supervision Component Frequency Handling, Operation stage  Leakage of acid  BPC customer  During entire  Village Technician O&M transport and safe and service centre, and life of SHLS of BPC manager at storage at BPC unauthorized installation sites project RED customer Centre of disposal by the used (non owner performing battery  Storage on )battery of Solar impervious Home Lighting surface at BPC System customer Centre Collection of used Operation leakage  Trucks carrying  During  O&M manager at DOE Batteries stage(During used battery Transport RED transportation of batteries to Phuentsholing)

9.3 Environmental Management Plan (EMP)

156. The Environmental Management Plan is meant for mitigation/management/ avoidance of the negative impacts. For each mitigative measure to be taken, its location, timeframe, implementation and overseeing /supervising responsibilities are listed in the EMP.

157. The identified impacts and suggested mitigation measures with institutional resonsiblities are tabulated in Table 9.

Table 9: Environmental Management Plan (EMP)

Project Stage - Proposed Mitigation Parameter to Measurement Institutional Responsibility Anticipated Measures be Monitored Frequency Implementation Supervision Cost Environmental Issues and Impacts A. Pre Installation Phase 1. Selection of As far as possible plan Locations Not RED DOE Not location for installation installation of SHLS in finalisation for Applicable applicabl of Solar Home lighting habitations connected through SHLS e Systems a reasonable road/track so installation that transportation of discharged battery is easy to customer service centers 2 Formulation of A preventive maintenance Aspects to be Not Applicable RED DOE Not Schedule for schedule should be formulated observed by Applicabl Preventive O&M for for the entire SHLS by O&M technicians as e installed SHLS manager. This schedule will PV panel, help to replace batteries likely accessories, to be replaced luminaries, wires, strength of battery with multimeter etc. B. Installation Phase

Project Stage - Proposed Mitigation Parameter to Measurement Institutional Responsibility Anticipated Measures be Monitored Frequency Implementation Supervision Cost Environmental Issues and Impacts

1. Disposal of waste  The packaging materials of Plastic, During entire BPC village O&M Included material such as SHLS should be properly packing if any technician program in O&M installation packing etc from disposed off should be manager program period installation sites disposed off budget solid waste disposal sites of Dzongkhags

Training to BPC village  The RED will organize a Not applicable Once during O&M program DOE Included technicians in training program to BPC manager at RED in O&M installation preventive village technicians for program phase there maintenance of SHLS preventive maintenance and budget and in safe transport of safe transport to BPC after annually used batteries to Customer Service Centers. customer service In case of leakage of acid centre of BPC and for they will be given training to mitigation measure to dilute the spilled acid with be taken in the event abundant quantities of water acid leakage C: Operation Phase 1. Preventive Preventive maintenance of Electrical As per BPC village O&M Part of Maintenance of SHLS system continuity in preventive technician Program constructi SHLS wiring, proper maintenance Manager on

strength of

battery with multi meter,

luminaries functioning 2 Safe collection  Village technician will Ensure that Transport of O&M Program DOE Included system of used there is no used batteries Manager at RED arrange to transport the in O&M batteries leakage of on need basis batteries by hiring local budget acid from the labour to the nearest BPC

customer service centre. batteries while

Here these will be stored on transportation

impervious surface. The

O&M manager on the basis

of number of used batteries

stored at customer service

centre will arrange a truck to

pick up these batteries for

transportation to

Phuentsholing for onward

transportation to authorized

battery recyclers to India.

contractor for this. Transportor O&M  The transporter will be Program Leaked Acid During Included trained to neutralize Manager accidentally leaked acid with transport in O&M abundant quantities of water. budget

9.4 Environmental Management Plan Cost

158. Based on EMP description above it is concluded that environmental issues in the installation and operation phase of SHLS are not there except safe collection and transport of used batteries. In initial 3 years no environmental issue is likely as battery life varies from 3-5 years. The cost to recycle batteries is included in O&M budget. The time input of O&M program manager for the implementation of EMP has also been included in the O&M budget. Hence there are no additional EMP compliance costs as these have already been accounted for in project implementation costs.

Chapter - 10 Findings, Recommendation and Conclusion

10.0 Findings, Recommendation and Conclusion

10.1 Findings

159. The findings of the SHLS project based on IEE prepared are as follows:

 The SHLS project is environment friendly and it will help to achieve RGOB target for electricity to all by 2013. It will help to electrify the habitations where extension of grid is not possible on account of techno-economic reasons.  The potential environmental impact identified is safe collection and transport of used batteries. For this EMP has been prepared. There will be no short term or long term adverse impacts on environment during installation and operation phases.  Life quality of rural population will improve and project will bring prosperity. There will be direct and indirect generation of employment due to the project.  Mitigation and monitoring measures have been developed in the EMP. The EMP will be implemented by the O&M Program Manager at RED., RGOB regulatory agencies, and ADB. Public consultation has been undertaken during project preparation. RED will follow an open door policy for receiving complaints, if any, from the concerned farmers, and will conduct additional consultations as necessary during project implementation.

10.2 Recommendations

160. A memorandum of understanding should be signed between BPC and RED for O&M by the BPC village technicians

161. An orientation cum training program should be organised during installation phase by O&M manager at RED for village technicians of BPC for preventive maintenance of SHLS and safe transport of used batteries to BPC customer service centres.

162. A training program should also be organised for transporters involved in collection and transport of used batteries during operation phase.

10.3 Conclusion

163. The SHLS Project will not result in any long-term significant adverse environmental impacts. The likely negative impacts will be avoided through safe collection and transport of used batteries from BPC customer Service Centres. Environmental and social benefits of the Project and long-term investment program objectives outweigh the negative impacts.

164. Based on environmental assessment activities conducted to date, the Project is confirmed as environmental category ‘B’ and the IEE, including the EMP, is considered sufficient to meet the environmental assessment requirements of ADB, and RGOB. A full environmental impact assessment study is not required.