46293-003: Greater Mekong Subregion Tourism Infrastructure For

Updated Initial Environmental Examination

Project Number: 46293-003 Loan Number: 3156-LAO June 2020

Lao People’s Democratic Republic: Greater Mekong Sub-region Tourism Infrastructure for Inclusive Growth Project

Oudomxay Province

Prepared by the Ministry of Information, Culture and Tourism for the Asian Development Bank.

This updated 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. Your attention is directed to the ‘terms of use’ section on ADB’s website.

In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. CURRENCY EQUIVALENTS

(as of 26 May 2020) Currency Unit – kip K K1.00 = $0.000111 $1.00 = K 8,988

WEIGHTS AND MEASURES oC – degree Celsius km – kilometer m – meter kg – kilogram ha hectare NOTE: In this report, "$" refers to US dollars unless otherwise stated.

ABBREVIATIONS

CEMP - Construction Environmental Management Plan DOH - Department of Heritage DAF - Department of Agriculture, Forestry and Fisheries EA - Environmental assessment DONRE - Department of Natural Resources and Environment DDSC - Detailed Design and Supervising Consultant DICT - Department Information and Culture and Tourism EIA - Environment Impact Assessment ECC - Environmental Compliance Certificate ECO - Environmental Control Officer EMP - Environment Management Plan ESIA - Environment and Social Impact Assessment EA - Executing Agency GMS - Greater Mekong Sub-region IA - Implementing Agency IEE - Initial Environmental Examination IUCN - International Union for Conservation of Nature Lao PDR - Lao People’s Democratic Republic LWU - Lao Women’s Union MAF - Ministry of Agriculture, Forestry and Fisheries MICT - Ministry of Information, Culture and Tourism MOF - Ministry of Finance MONRE - Ministry of Natural Resources and Environment MPWT - Ministry of Public Works and Transport MRC - Mekong River Commission NBSAP - National Biodiversity Strategy and Action Plan NPA - National Protected Area O&M - Operation and Maintenance PIU - Project Implementation Unit PCU - Project Coordination Unit PPP - Public-Private Partnership PPTA Project Preparatory Technical Assistance (PPTA) REA - Rapid Environment Assessment TIIGP Tourism Infrastructure for Inclusive Growth Project TSS - Total Suspended Solids UXO - Unexploded Ordnance WREA - Water Resources and Environment Agency 2

TABLE OF CONTENTS

I. EXECUTIVE SUMMARY ...... 7 A. The Project Introduction and Purpose ...... 7

B. The Scope and Objectives of this IEE...... 7

C. Project Summary ...... 7

D. Potential Impacts ...... 8

E. Conclusions ...... 10

II. INTRODUCTION ...... 11 A. Project Background ...... 11

B. The Scope and Objectives of this IEE...... 12

C. Environmental Categorization ...... 13

D. Existing Impact Footprints ...... 13

E. Structure of this IEE Report ...... 13

III. POLICY, LEGAL, AND REGULATORY FRAMEWORK ...... 14 A. National Environmental Laws, Strategies, and Policies ...... 14

1 Laws ...... 15

2 Decrees Strategies, Plans, Policy ...... 15

3 International Agreements ...... 15

4 Environmental Standards & Criteria ...... 16

B. National Forest Management Types ...... 16

1. Protection Forests ...... 16

2. Conservation or Reserved Forests ...... 17

3. Production Forests ...... 17

4. Regeneration Forest ...... 17

5. Degraded Forests ...... 17

C. National Environmental Assessment Procedures ...... 17

D. ADB Safeguard Policy ...... 19

IV. DESCRIPTION OF SUBPROJECTS ...... 19 A. Justification and Rationale ...... 19

B. Subproject in Oudomxay Province ...... 19

V. DESCRIPTION OF ENVIRONMENT ...... 25 A. Project’s Area of Influence ...... 25

B. Geography and Topography ...... 27

C. Meteorology and Climate ...... 28

D. Vegetation type ...... 29

E. Hydrology, Water Resources and Quality ...... 29

F. Air Quality and Noise ...... 30

G. Climate Change ...... 30

H. Natural Disasters ...... 31

I. Ecological Resources ...... 31

J. Physical Cultural Resources ...... 32

K. Socio-economic Condition ...... 32

VI. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES ...... 33 A. Positive Impact and Environmental Benefits ...... 33

B. Impacts Associated with Project Location and considerations during design stage ..... 33

C. Mitigation Measures and Actions during Pre-construction ...... 35

1. UXO Clearance ...... 35

2. River Sand Usage ...... 35

3. River Gravel Usage ...... 35

4. Borrow areas...... 35

5. Spoil Disposal ...... 35

6. Construction camps ...... 35

7. Preparation of CEMPs ...... 36

8. Capacity Building Training...... 36

D. Environmental Impacts and Mitigation Measures during Construction ...... 36

1. Construction-related common impacts ...... 36

2. Specific Impacts and Mitigation Measures for the Subproject ...... 37

E. Environmental Impacts and Mitigation Measures during Operation ...... 40

1. Roads ...... 40

2. Tourist reception area and car park ...... 40 4

3. Inside the cave ...... 40

F. Induced and Cumulative Impacts ...... 40

VII. ANALYSIS OF ALTERNATIVES ...... 41

VIII. PUBLIC CONSULTATION ...... 41 A. Approach ...... 41

B. Identification of Stakeholders ...... 42

C. Discussion Guide ...... 42

D. Summary of Public Consultation ...... 42

E. Future Public Consultation Programme ...... 44

IX. GRIEVANCE REDRESS MECHANISM AND PUBLIC DISCLOSURE ...... 44 A. Grievance Redress Mechanism ...... 44

B. Public Disclosure ...... 47

X. CONCLUSIONS ...... 47 A. Major Environmental Impacts ...... 47

B. Overall Conclusion ...... 49

ANNEX 1: Photos and participation list of Public Consultation Meetings Conducted in July 2017 ...... 50

ANNEX 2 Surface and Ground Water parameters analysis ...... 52

APPENDIX 1 – Updated Environmental Management Plan – June 2020 ...... 56 A. Introduction ...... 59

B. Institutional Arrangements and Responsibilities ...... 59

C. Summary of Potential Impacts and Mitigation Measures ...... 61

D. Monitoring and Reporting ...... 72

E. Environmental Reporting ...... 74

F. Institutional Capacity Building and Training ...... 75

G. Mechanisms for Feedback and Adjustment ...... 76

Figures

Figure 1: Project Provinces in Lao PDR ...... 12 Figure 2: Location of Chom Ong Caves Access Improvements SubprojectError! Bookmark not defined. Figure 3: Chom Ong Caves Access Improvements (R01) ...... Error! Bookmark not defined. Figure 4: Sections of 37.2 km access road ...... 23 Figure 5: A section of 16.4 km access road – Makjuk Village at km 4+00 ...... 23 Figure 6: A section of 16.4 km access road – entrance to Kieo Joulou Village at km 8+00…23 Figure 7: Short access road to the cave (last 2.2 km)...... 24 Figure 8: The location of tourist reception area and car park at the edge of the forest...... 24 Figure 9: Chom Ong Cave ...... 24 Figure 10: Location of Xay District ...... 25 Figure 11: Location of Project and environmental receptors-north section ...... 26 Figure 12: Location of Project and environmental receptors-south section ...... 26 Figure 13: View from the entrance and inside the cave ...... 28 Figure 14: Map of Chom Ong Cave 9 ...... 28 Figure 15: The protected forest in front of the cave ...... 31 Figure 16: GRM Process ...... 46 Figure 17: View from public consultation implemented in July 2017 ...... 50

Tables

Table 1: Chom Ong Caves Access Improvements Subproject Components ...... 21 Table 2: Receptors within project area of influence ...... 26 Table 3: Forest types within project area of influence ...... 29 Table 4: Guiding Questions for Public Consultations ...... 42 Table 5: Summary of stakeholder views ...... 43 Table 6: Grievance Committee (GC) Members ...... 44 Table 7: List of participants ...... 50 Table 8: List of Participants during the public consultation in May 6 -9, 2020 ...... 51 Table 9: Groundwater Standards ...... 52 Table 10: Surface Water Quality Standards ...... 53 Table 11: Environmental Management Plan ...... 62 Table 12: Project Readiness Assessment Indicators ...... 72 Table 13: Environmental Monitoring Plan ...... 73 Table 14: Reporting requirements ...... 75 Table 15: Training Programme ...... 76

I. EXECUTIVE SUMMARY

A. The Project Introduction and Purpose 1. The Greater Mekong Sub Region (GMS) Tourism Infrastructure for Inclusive Growth Project (the project, or TIIGP) is a multi-sector tourism development project situated in Lao PDR, Cambodia, and Viet Nam. The project comprises transport-related and environmental infrastructure investment subprojects in twelve provinces of the three participating countries.

2. The objective of the project is to accelerate inclusive tourism growth in the targeted areas of the GMS. Inclusive growth is defined by local social and economic growth from tourism development that is environmentally sustainable. The development of tourism to enhance pro-poor employment serves the GMS Strategic Framework 2012–2022, GMS Tourism Sector Strategy 2005–2015, and the current poverty reduction strategies of the participating countries.

B. The Scope and Objectives of this IEE 3. The general objectives of this IEE are to: (i) provide baseline data on environmental impacts caused by the subproject; (ii) provide understanding on potential impacts of the subproject components; (iii) provide information on potential mitigation measures to minimize negative impacts; (iv) provide information on the public consultation process undertaken, and the project level Grievance Redress Mechanism (GRM) established; and (v) formulate Environmental Management and Monitoring Plans.

4. Apart from the above-given general objectives of the IEE, objectives of the updating IEE is to: (i) take account of revised detailed engineering design for part of the subproject (16km road) approved in May of 2020; (ii) update the IEE and EMP with any new baseline information and environmental management measures, respectively, and (iii) confirm that the environmental categorization of impacts according to ADB SPS remain unchanged as category B.

5. An initial environmental examination (IEE) was prepared for the subproject in April 2014. An updated IEE based on the detailed engineering design which excludes 16.4 km of the main access road section due to budget limitation was prepared in July 2017. The IEE was again updated in May 2019, taking into account the re-included 16.4 km of the loop road earlier excluded. This version of IEE, prepared in May/June 2020, takes into account the revised detailed engineering design (DED) for the 16.4 km section prepared during quarter 1 of 2020 and approved by ADB in May 2020. The design revision was necessary to minimize social and environmental impacts and ensure the works can be completed within the time available (i.e. before 31 December 2020). All current parts of the subproject are classified per ADB SPS as environment category B.

C. Project Summary 6. There is one sub-project activity in Oudomxay Province, which is Chom Ong Cave Access Improvements” under Output 1. Output 1 includes an array of small infrastructure and environmental improvements at established tourist sites that will improve the environmental conditions and the overall quality of the tourism experience. The goal is to increase the number of tourists that visit each site.

7. The subproject includes upgrading of 37.2 km main access road (R01) from Muang Xai District to the junction with turn off to Chom Ong Cave (south section-R01) and 16.4 km main access road from Road No.13N to the junction with turn off to Chom Ong Cave (north section-R02), and 2.2 km short access road from connection point of R01 and R02 to Chom Ong Cave. Construction of car park and public toilets; and tourist reception area which includes tourist information centre, kiosk, souvenir, food and beverage outlets. Upgrade access path and steps to the cave, installation walking paths inside the cave including handrails and illumination.

8. The only change since the updated IEE of May 2019 is the revised detailed engineering design (DED) for the 16.4 km of the loop road (refer para 61) which does not affect environmental assessment conducted in 2017 and confirmed in 2019.

D. Potential Impacts 9. This updated IEE of the subproject in Oudomxay confirms that potential environmental impacts are largely restricted to the construction phase of the subproject components, which can be mitigated through the implementation of measures given in the EMP and subsequently the CEMP prepared by the contractor. The common construction-related disturbances such as noise, dust, soil erosion, sedimentation, solid and liquid waste pollution, increased risk of worker and public injury can be managed with standard construction practices and management guidelines (e.g., IFC/World Bank 20071). Amongst the common construction impacts the major ones and specific environmental impacts depending on the project location are summarised below:

10. The works in the protected forest. The Chom Ong cave and the area immediately in front of the cave are in protected forest, where wildlife and biodiversity should be protected, and the cutting/damage to trees is forbidden. The works inside the protected forest, will include upgrading existing walkway and steps to the cave, and construction of tourist reception area (consists of reception centre, kiosk, souvenir, and food & beverage outlets) in the edge of the forest. In order to mitigate potential impacts on wildlife and biodiversity: (i) The construction working area will be clearly demarcated; (ii) The workforce will be made aware that there should be no encroachment to areas outside of the working area. (iii) The trees close to reception area buildings will be surrounded with warning tape to take attention when working in the vicinity of the trees; (iv) the work force will be made aware that capturing any wildlife during construction is prohibited.

11. The works inside the cave. Installation of walking paths and illumination system inside the cave may affect cave geology and habitat: In order to minimise the potential impacts (i) All project work, prior to implementation, will be approved by Detailed Design and Supervision Consultant (DDSC); (ii) tools and materials used for walkway and lighting will be stored outside the cave when possible; (iii) All equipment and materials will be cleaned of excess dirt and debris prior to cave entry; (iv) Use of chemicals within the cave will be avoided and, if necessary, will only be used upon approval of DDSC; (v) All bolting, trenching and digging within the cave must be approved by DDSC; (vi) construction vibration impacts will be

1 International Finance Corporation (IFC)-World Bank Group, Environmental, Health, and Safety (EHS) Guidelines, April 30, 2007

minimized; (vii) All workers within the cave will wear appropriate clothing and will use adequate safety equipment including helmets etc; (viii) all project related refuse will be removed from the cave. (xi) Chance find procedures will be established for undiscovered underground cultural or historic sites that might be identified during project implementation.

12. The road works in the vicinity of the villages. More attention should be paid for noise, dust, public safety impacts of the road works when working in the vicinity of the villages. The impacts could be easily mitigated through common mitigation measures such as (i) locating rock crushing, concrete-mixing, and similar activities sites at least 300m away from sensitive areas; (ii) not using noisy equipment at night; (iii) implementing effective dust suppression measures near sensitive receptors such as schools, hospitals, or housing; (iv) Covering trucks carrying earth, sand or stone with tarps or other suitable cover to avoid spilling; (v) Locating asphalt plants and mixers as far away as possible (at least 200 m downwind) from the nearest sensitive receptor (vi) Installation of warning signs at the construction sites in order to warning people of potential dangers; (vii) Installation of physical/warning barriers to limit access to construction sites, whenever possible etc.

13. The road works in the vicinity of the water streams has potential impacts of pollution and sedimentation of water streams, which can be mitigated through common practices such as (i) locating fuel storage, maintenance shop and vehicle cleaning areas at least 300m away from the nearest water body; (ii) removing the wastes from site and taken to approved disposal facilities; (iii) developing and implementing contingency plans for control of oil and other dangerous substances; (iv) Implementation of the construction in erosion and flood-prone areas in dry season; (v) implementation of protection measures for river embankment works, cut slopes, material stockpiles and other areas at risk of soil erosion prior to periods of heavy rainfall will be implemented.

14. The road works may cause loss of vegetation and agricultural land. In order to mitigate potential impacts: (i) Encroachment of heavy equipment on adjacent areas will be controlled and minimised as much as possible; (ii) Approved tree removal and replanting plan, construction site re-vegetation plan will be implemented; (iii) No tree will be removed during construction unless approved by PIU/DDSC; (v) For every one tree removed, at least three in suitable city locations will be replanted after construction;

15. Potential operation phase impact at tourist reception area is increased solid waste litter, and local pollution from the toilet blocks and Anaerobic Baffled Reactor (ABR) system (that if they are not maintained properly) due to targeted increase in tourist activity. In order to mitigate potential impacts. (i) septage from the new toilet blacks must be regularly removed and disposed in nearby Department of Natural Resources and Environment (DONRE) approved landfill; (ii) The toilet facilities must be cleaned and maintained regularly; (iii) Garbage bins must be emptied and removed regularly, and disposed in DONRE- approved site.

16. A potential operation phase impact of the upgraded access roads to the cave is an increase in traffic accidents and injuries arising from an increase in traffic of larger and faster vehicles using the roads. In order to mitigate potential impacts: (i) traffic law including speed limits should be strictly enforced; (ii) Traffic direction and speed control sign boards should be installed.

17. Potential operation phase impacts inside the cave is fungal growth due to food litters thrown by the tourist tours which should be mitigated through (i) informing visitors that no food or drink is allowed in the cave, (ii) placing signs on the stairs to the cave reiterate this point; (ii) picking up any rubbish constantly by cave guides.

18. An EMP has been prepared, and is updated to reflect the scope and prevailing detailed engineering design for the 16.4 km road section approved on 7 May 2020. This identifies potential impacts, gives the mitigation required, stipulates environmental monitoring plans, gives indicative costs for EMP implementation, and specifies the institutional responsibilities for the environmental management of the subproject.

E. Conclusions 19. The findings of this updated IEE show that with effective implementation of the EMP, Oudomxay subproject, with the latest 7-May-2020-approved DED for the 16 km road section, is not anticipated to have any significant adverse environmental impacts. Public consultations indicated that the majority of potentially affected people had a positive attitude toward the project as a whole and believed it would be beneficial. Any adverse environmental impacts associated with the project will be prevented and/or reduced to acceptable levels as set out in the EMP. In addition, institutional strengthening and personnel training will be established to ensure environmental sustainability of the project.

20. The updated IEE, which takes account the May-2020-approved DED for the 16.4 km road section, confirms that the subproject is Category B and that there are no overriding reasons why the project should not proceed.

II. INTRODUCTION

A. Project Background 21. The GMS Tourism Infrastructure for Inclusive Growth Project (the project) is a multisector tourism development project situated in Lao PDR, Cambodia, and Viet Nam. The project comprises transport-related and environmental infrastructure investment subprojects in twelve provinces of the three participating countries.

22. The objective of the project is to accelerate inclusive tourism growth in the targeted areas of the GMS. Inclusive growth is defined by local social and economic growth from tourism development that is environmentally sustainable. The development of tourism to enhance pro-poor employment serves the GMS Strategic Framework 2012–2022, GMS Tourism Sector Strategy 2005–2015, and the current poverty reduction strategies of the participating countries. The GMS Tourism Sector Assessment, Strategy, and Roadmap indicate that ADB’s assistance to the tourism sector will focus on:

1) Improving last-mile tourism access infrastructure and sanitation in secondary destinations; 2) Capacity building for public officials and local communities; and 3) Promoting multi-country tour circuits.

23. The project is included in the targeted countries of ADB’s Country Partnership Strategies which emphasize the need to improve rural transport infrastructure, expand municipal infrastructure and services, and promote small and medium-sized enterprises to boost the poor’s access to economic opportunities. The project comprises four outputs:

• Output 1: Improved Last Mile Tourism Access Infrastructure which includes new and upgraded roads, piers, and associated tourism support facilities; • Output 2: Improved Environmental Services in Cross Border Tourism Centers which includes wastewater treatment facilities and landfills; • Output 3: Strengthened Institutional Capacity to Promote Inclusive Tourism Growth • Output 4: Effective Project Implementation and Knowledge Management.

24. Output 1 and Output 2 involve small infrastructure investments, whereas Outputs 3 & 4 involve “softer” development initiatives such as tourism planning and management, development of public-private partnerships, and counterpart capacity development and training in tourism. The focus of this IEE is the infrastructure investments in Outputs 1.

25. Figure 1 shows the provinces in Lao PDR where subprojects are proposed. This IEE refers only to the “Chom Ong Cave Access Improvements” subproject in Oudomxay Province.

Figure 1: Project Provinces in Lao PDR

B. The Scope and Objectives of this IEE 26. The draft IEE for the Oudomxay Province subproject was prepared in 2014 at the feasibility study stage by the Project Preparatory Technical Assistance (PPTA). The IEE was updated by the Detailed Design & Supervision Consultant (DDSC) on behalf of, and in close collaboration with, the Ministry of Information, Culture and Tourism (MICT) of Lao PDR according to detailed designs for the subprojects as of July 2017, which excluded the 16.4km northern section of the loop road due to budget constraints, and approved by ADB in November 2017. The IEE was again updated in May 2019, taking into account the re-included 16.4 km of the loop road earlier excluded. This version of IEE, prepared in May/June 2020, takes into account the revised detailed engineering design (DED) for the 16.4 km section prepared during quarter 1 of 2020 and approved by ADB in May 2020. The design revision was necessary to minimize social and environmental impacts and ensure the works can be completed within the time available (i.e. before 31 December 2020).

27. The IEE describes the baseline environmental conditions, including physical, ecological and socio-economic resources in the project area, assesses environmental impacts of the proposed activities, and provides mitigation measures. The IEE presents the public consultation process undertaken and the Grievance Redress Mechanism established. The IEE includes an environmental management plan (EMP) with an environmental monitoring plan. It has been prepared following ADB’s Safeguard Policy Statement (SPS, 2009).

28. The general objectives of this IEE are to:

1) Provide necessary baseline data about the project; 12

2) Provide understanding on potential impacts of the project; 3) Provide information on potential mitigation measures to minimize negative impacts including mitigation costs; 4) Provide information on the public consultation process undertaken, and the project level Grievance Redress Mechanism (GRM) established; and 5) Formulate Environmental Management and Monitoring Plan (including definition of institutional responsibilities, capacity building and training plans, and budgeting).

C. Environmental Categorization 29. The updated IEE prepared following completion of the detailed design confirmed that project remained to be categorized “B” in accordance to ADB’s Safeguard Policy Statement (2009). The May 2019 and June 2020 updated IEEs re-confirmed the identified potential impacts during screening, which are largely restricted to construction-related disturbances such as noise, dust, erosion, surface water sedimentation, solid and liquid waste pollution, and risk of worker and public injury. It is confirmed that these impacts are considered reversible and site specific and can easily be mitigated to acceptable levels through sound implementation of the EMP.

30. According to the National Environmental Protection Law (2012), development projects and operations that have or will have the potential to affect the environment shall require environmental assessment. MONRE is responsible for environmental management and monitoring and the issuance of an Environmental Compliance Certificate (ECC), which is issued after approval of IEE or ESIA. According to relevant national Ministerial Instructions on IEE and ESIA the project is categorised in Group 1, which requires conducting IEE process. The DDSC applied to PoNRE Oudomxay for approval of the IEE.

D. Existing Impact Footprints 31. The subproject is located in existing tourist destinations with the goal of increasing tourist visitation at the site. The subproject activities will upgrade existing tourist facilities such as access roads, small tourist reception buildings, and solid and wastewater management. Thus, the environmental impact footprint due to tourism development already exists at the subproject area. The challenge is to improve the tourist facilities through small infrastructure and environmental developments without significantly enlarging the tourist impact footprint whilst ensuring the resource is protected and maintained.

E. Structure of this IEE Report 32. The IEE report is organized as follows:

i. Executive Summary (Chapter I) outlines important facts, major findings of the IEE. ii. Introduction (Chapter II) describes the purpose of this IEE, the environmental categorization by ADB and MONRE based on an environmental screening, and the structure of the IEE. iii. Policy, Legal and Administrative Framework (Chapter III) describes ADB’s and the Lao PDR’s environmental impact assessment requirements and procedures, and applicable environmental regulations.

iv. Description of the Subprojects (Chapter IV) provides a justification of the project based on a sector analysis; a detailed description of the project, including project location and components. v. Description of the Environment (Chapter V) provides a description of the potentially affected environment as (i) Physical Resources, including topography and soils, air and water quality, noise etc.; (ii) Ecological Resources – flora, fauna, and protected areas; (iii) Physical cultural resources; (iv)Socio- economic situation, including economic development, public health and education, and poverty. The description is based on reviews of available documentation, statistical data, and field surveys and investigations. vi. Anticipated Impacts and Mitigation Measures (Chapter VI) provides an assessment of potential impacts of the proposed development in light of the existing conditions. It assesses environmental impacts of subprojects in three phases: pre-construction, construction and operation. It also defines mitigation actions to prevention measures. vii. Analysis of Alternatives (Chapter VII) assesses impacts and benefits of with- project and without-project scenarios. viii. Public Consultation (Chapter VIII) provides information on public consultation activities undertaken during project preparation, and introduces the plan for future public consultation. ix. Grievance Redress Mechanism (Chapter IX) presents the GRM established to handle grievances and complaints arising during project implementation. x. Conclusions (Chapter X) summarize the major environmental impacts, mitigation measures and concludes on the environmental soundness of the project. xi. Appendix 1. Environmental Management Plan presents the EMP for the subproject in Oudomxay updated based on the prevailing approved DED. The EMP defines the mitigation measures, environmental monitoring requirements, institutional responsibilities, training activities related to environmental management, reporting requirements, and a mechanism for feedback and adjustment.

III. POLICY, LEGAL, AND REGULATORY FRAMEWORK

A. National Environmental Laws, Strategies, and Policies 33. The Government of Lao PDR (GOL) has a policy to give priority to tourism sector development or that existing tourist sites should be developed further, and for this good infrastructure is essential to sustain the quality, economic viability and growth of the travel and tourism sectors. The national framework for the governance of environmental matters includes a comprehensive set of environmental and natural resources related laws and regulations. Several government agencies are involved in environmental management.

34. In 2011 the Ministry for Natural Resources and the Environment (MONRE) was created 14

by merging the Water Resource and Environment Administration (WREA) with departments of the National Land Management Authority (NLMA) and portfolios of other ministries including the Geology Department, and the Forest Conservation and Divisions within the Ministry of Agriculture and Forestry (MAF). The policies, laws relevant to environmental protection are listed below.

1 Laws • Law on Constitution, (Amended) No. 25/NA, dated 6 May 2003 • Law on Agriculture, No. 01/NA, dated 10 October 1998 • Law on Irrigation, No. 038/NA, dated 14 December 2012 • Law on Labour (Amended), No. 021/NA, dated 24 December 2013 • Law on Tourism (Amended), No. 32/NA, dated 24 June 2013 • Environmental Protection Law, Amended version (No.041/NA, dated 18 December 2012) • Law on Hygiene, Disease Prevention and Health Promotion (No. 01/NA, dated 10 April 2001) • Amended Water and Water Resources Law, (dated 11 May 2017) • Land Law (No 04/NA, dated 21 October 2003): • Public Road Law (No. 04/99/NA, dated 5 December 2016) • Amended Forestry Law, (06/NA, dated 24 December 2007) • Law on Cultural, Historical and Natural Heritage (2005) • Law on Fisheries (2010) • Wildlife and Aquatics Law, (No 07/NA, dated 24 December 2008): • Amended Electricity Law (No. 03/NA, dated 8 December 2008): • Law on Urban Plans (No. 03-99/NA, dated 3 April 1999) • Law on National Heritage (No. 08/NA, dated 9 November 2005)

2 Decrees Strategies, Plans, Policy • Decree on Compensation and Resettlement Management in Development Projects, No. 84, dated 05/04/2016 • Decree on National Environmental Standards, No 81, dated 21 February 2017 • Action Plan on Climate Change (2013-2020), No. 2398/MoNRE, dated 19 April 2013 • The 8th National Social and Economic Development Plan (NSEDP)(2016-2020) • National Forestry Strategy to 2020(FS2020) • National Biodiversity Strategy to 2020&ActionPlan to 2010(NBSAP) • Urban Master Plan (2001)No. 58/PM • Strategy on Climate Change (2010) • National Adaptation Programme of Action to Climate Change (NAPA) (2009) • Strategic plan on disaster risk management in Lao PDR (2020,2010) and Action Plan (2003-2005) • Ministerial Instruction on the Process of Initial Environment Examination of the Investment Projects and Activities on dated No.8029/MONRE (2013) • Ministerial Instruction on Environmental and Social Impact Assessment Process of the Investment Projects and Activities No.8030/MONRE(2013)Law on Industry No.01/99/NA (1999)

3 International Agreements

35. The Lao Government is party to international multilateral environmental agreements. Agreements pertaining to the project are listed below.

• World Heritage Convention (WHC), March 20, 1987 • Agreement on the cooperation for the Sustainable Development of the Mekong River Basin (5 April 1995) • Framework Convention on Climate Change (FCCC), 4January,1995 • Agreement on The Cooperation for The Sustainable Development of The Mekong River Convention on Biological Diversity (CBD), September 20, 1996 • Montreal Protocol on Substances that Deplete the Ozone Layer, August 21,1998 • Persistent Organic Pollutants (POPs), March5, 2002 • ASEAN Agreement on Transboundary Haze Pollution, June10,2002 • Plant Protection Agreement for the Asian and Pacific Region, March17,1960

4 Environmental Standards & Criteria 36. National standards and criteria exist for drinking water quality, surface and groundwater quality, soil quality for agriculture, air quality and noise level standards, and wastewater discharge standards for BOD, NH3-N, TSS, and pH specific standards are also available for certain chemical use by factories. The existing standards are found in the National Environmental Standard Order No. 81/GOL (2017). See Annex 2. Surface and Ground Water parameter analysis.

B. National Forest Management Types 37. The three primary forest types or categories with respect to forest preservation and development are Protection Forest, Conservation Forest and Production Forest. Two other managed forest categories which reflect the overall goal of the Government of forest restoration through community-based forest management are Regeneration Forests and Degraded Forests. These are defined below.

1. Protection Forests

38. Protection forests are forests classified for the function of environmental protection defined by water resources, river banks, road sides, preventing soil erosion, protecting soil quality, strategic areas for national defence, and protection from natural disasters.

39. The protection forests in Lao PDR are divided into four levels: (i) the protection forests at the national level; (ii) the protection forests at the provincial or city level; (iii) i) the protection forests at the district or municipality levels; and (iv) i) the protection forests at the village level.2

40. Activity Restrictions. Protected forests are further stratified into total protected zones and controlled use zones. The total protected zone is usually steep sloped, contains water resources including forests along rivers, roads and other areas with high risk of environmental degradation. These areas must be protected from activities such as crop rotation, cutting or

2 Decree on the Protection Forest No.333/PM Date 19.07.2010

burning, tree removal, housing construction, extraction of soil, stones, or mining.

41. The controlled use zone is the forest area without a perceived high risk of environment impacts. These areas must be protected similar to the total protection zone, but people are allowed to use wood and forest products according to the management plan. For example, Article 5 of the Forestry Law would apply which indirectly encourages the utilization of forests for research, tourism and recreational purposes.

2. Conservation or Reserved Forests 42. Conservation forests are forests classified for the purposes of conserving nature, preserving plant and animal’s species, forest ecosystems and other valuable sites of natural, historical, cultural, tourism, environmental, educational and scientific research experiments. Conservation forests exist at the national, provincial, district and village levels.

43. Activity Restrictions. Similar to protected forests, conservation forests are divided into zones defined by total protection zones, controlled use zones, corridor zones and buffer zones. The total protection zone is the forest area that is main habitat, feeding and breeding place for various wild animals and it is the place of diverse and dense vegetation. In this zone, it is strictly prohibited to conduct any forestry activity, to harvest any forest products, including unauthorized entry in this zone. Examples are core zones of national parks or nature reserves.

44. The controlled use zone is the forest area adjacent or close to the total protection zone. These areas must be protected similar to the total protection zone, but people are allowed to use wood and forest products according to local management plan.

45. The corridor zones are managed areas for preserving tracts of forest to provide passage for animals between two conservation forests or between a conservation forest and another category of forest to preserve existing biodiversity and to increase the general wildlife population. In this zone, it is prohibited to cut trees, conduct forestry activities or any other activity that may obstruct or destroy the passage for the animals. The buffer zones are managed areas for preventing any encroachment and destruction in the conservation forest.

3. Production Forests 46. Production forests are natural forests and planted forests that are actively utilized for wood production, and for wood and forestry product-related livelihoods to satisfy the requirements of national socio-economic development and people’s living.

4. Regeneration Forest 47. Regeneration forest is young fallow forest classified for the purpose of regeneration and maintenance so that it increases in maturity toward a stage of natural equilibrium.

5. Degraded Forests 48. Degraded forest has been heavily damaged to the extent that land is barren without trees. The forest is classified for tree planting and/or allocation to individuals and organizations for tree planting, permanent agriculture and livestock production, or for other purposes.

C. National Environmental Assessment Procedures 49. Pursuant to the Environmental Protection Law (2012), development projects and operations that have or will have the potential to affect the environment shall require 17

environmental assessment in accordance with the regulations of MONRE (previously WREA). MONRE is responsible for environmental management and monitoring and the issuance of an Environmental Compliance Certificate (ECC) as per the Ministerial Instruction on the Process of Initial Environment Examination of the Investment Projects and Activities on dated No.8029/MONRE (17.12.2013) and Ministerial Instruction on Environmental and Social Impact Assessment Process of the Investment Projects and Activities No.8030/MONRE(17.12.2013).

50. In accordance with the Ministerial Instructions on IEE and ESIA the investment projects and activities are divided into two groups: i) Group 1- Investment projects and activities that are anticipated to cause the insignificant or minimal environmental and social impacts; therefore, are required to conduct an Initial Environmental Examination Process; (ii) Group 2- Investment projects and activities that are anticipated to cause the significant or major environmental and social impacts; therefore, are required to conduct an Environmental and Social Impact Assessment process.

51. After application of project owner, the provincial department of MONRE (DONRE) screens the proposed project to determine whether project categorised in Group 1 or Group 2. If the proposed project categorised in Group 1, the project owner prepares the IEE Report to be accepted for review and issuance of the Environmental Compliance Certificate. If the proposed project categorised in Group 2, before implementation of ESIA, the project owner prepares a Scoping Report and the Terms of Reference to be reviewed and approved by the MONRE. After approval of the Scoping Report and Terms of Reference project owner conducts ESIA to be reviewed and approved by MONRE

52. Key directives and regulations for environmental assessment in Lao PDR are as follows:

• Ministerial Instruction on the Process of Initial Environment Examination of the Investment Projects and Activities on dated No.8029/MONRE (17.12.2013) • Ministerial Instruction on Environmental and Social Impact Assessment Process of the Investment Projects and Activities No.8030/MONRE(17.12.2013) • Manual of Environmental Impact Assessment Procedures Road Projects in Lao PDR (1997). • Regulation and Guidelines for Environmental Assessment of Road Projects (1999). • Environmental Impact Assessment for Industry and Processing Handicraft Order No.1222/MIH (2005)

53. The technical and procedural aspects of above regulations and directives were combined into the UNDP-UNEP supported and MONRE-sponsored Environmental Impact Assessment Guidelines for Lao PDR (2012), which has been followed by the draft IEE guidelines (2013). The 2012 EIA and 2013 draft IEE guidelines support the Decree of Environmental Impact Assessment (2010).

54. The IEE requirements of the ADB SPS (2009) more than satisfy the current draft IEE guidelines for Lao PDR. A project is assigned the requirement for either an IEE or EIA depending on project size or complexity. The Lao PDR EIA and IEE processes are essentially the same but differ by the required level of investigation, and that an EIA requires a formal Scoping and TOR for the EIA to be prepared. The Lao and ADB IEE follow the same major steps and consist of the same major components. However, the scope of the follow-up 18

environmental and social management plan differs. The EMP of the ADB IEE equals the scope of the ESMMP3 required of the Lao PDR EIA. While similar in process, the ADB IEE provides more comprehensive assessment and follow-up management.

D. ADB Safeguard Policy 55. The ADB Safeguard Policy Statement and Sourcebook (ADB 2009, 2012) clarifies the rationale, scope and content of an EA and is supported by technical guidelines. This project has been classified as Category B as it is considered to have potential adverse site-specific impacts, which can be readily addressed through effective implementation of mitigation measures. An IEE is required.

IV. DESCRIPTION OF SUBPROJECTS

A. Justification and Rationale

56. Although the Lao PDR has many cultural and natural tourist attractions with good development potential, tourism is highly concentrated in Vientiane Capital, which accounts for 43% of international arrivals and 47% of hospitality investment. The key impediments to more inclusive and geographically dispersed growth are:4

• insufficient last-mile transport infrastructure in secondary destinations; • weak market linkages between the tourism industry and other economic sectors; and • limited institutional capacity to promote local tourism-related enterprise development.

57. Consequently, at least 40% of tourism receipts leave the country in the form of tourism- related imports. Inadequate environmental infrastructure and low service standards suppress tourist length of stay, spending, and yield, resulting in average receipts per visitor of about $154 the lowest in the GMS and much less than the benchmark of $1,390 in Asia and the Pacific.4

58. To remove these constraints and engender a more equitable pattern of tourism development, the project will; 4

• upgrade access roads that link rural tourist attractions with urban centres, • improve environmental services in areas important for tourism, and • support training and capacity building for destination management organizations and local entrepreneurs. B. Subproject in Oudomxay Province 59. There are five subprojects in Lao PDR of which one is in Oudomxay province. This IEE relates only to “Chom Ong Cave Access Improvements Subproject” in Oudomxay Province.

60. The access improvements to Chom Ong Cave are located in Xay and Namor Districts,

3 Environmental & Social Management and Monitoring Plan 4 https://www.adb.org/projects/46293-003/main#project-pds 19

Oudomxay Province (Figure 2). There are two ways to access Chom Ong Cave, via one road to the north from National Road No.13N with a length of about 16.4 km (R02), and via another road in the south with a length of about 39.4 km (R01), together forming a loop road. (Figure 3).

Figure 2: Location of Chom Ong Caves Access Improvements Subproject

61. The original scope of the subproject was to improve the 58.8km road in DBST, starting from Xay town to Ban Chom Ong, and onwards to connect with Route 13N at Ban Bor To Kai, including a 2.2km side road from Ban Chom Ong to Chom Ong Cave (Package TIIG-LAO- W02). After detailed design, cost estimates dictated that it would not be feasible to improve the entire 59 km road, and the scope of package W02 was reduced to 39.4 kms road starting from Xay town to Ban Chom Ong and onwards to the Chom Ong Cave (tendered as Contract TIIG-LAO-W02). Later, with savings realized from the competitive bidding process, it was possible to extend the road improvements all the way to Route 13 North by adding the 16.4 kms between Ban Chom Ong and Ban Bor Ta Kai, procured as a separate package TIIG- LAO-W02a.

62. The short access road from R01 to the Chom Ong Cave is 2.2 km. The car park and public toilets are located in last 100m section of short access road, outside the protected forest. Tourist reception area, including reception centre, kiosk, souvenir, food and beverage outlets, is located at the end of the short access road in the edge of the protected forest.

63. The works inside and in the vicinity of the cave consists of installation of 800 m walking paths inside the cave including illumination, handrails. Upgrading of 88 m walkway from end of the short access road to the cave entrance. Table 1 summarizes the activities of the subproject based on the current detailed design for W02 (2017) and W02a (2020)

Figure 3: Chom Ong Caves Access Improvements

64. This IEE update is prepared to assess and confirm potential environmental impacts based on the revised detailed engineering design (DED) of the W02a road submitted for approval in end of March 2020 and approved by ADB on 7 May 2020, and, based on the findings, update, as needed, the EMP. The assessment compared the May 2020-approved revised DED with the DED approved in April 2019, which had been the basis for the 2019 IEE update.

65. The justification for revising the design for W02a was that it was found that the original design had major flaws causing unnecessary construction costs and adverse environmental and social impacts due to very deep and wide cuts proposed through hilly sections of the road. The revised design revised the vertical alignments of the roads to more closely follow the existing road alignments, significantly reducing the adverse social and environmental impacts.

Table 1: Chom Ong Caves Access Improvements Subproject Components (based on DED for W02 (2017) and W02a (2020)) Activity General Specifications A. Access Roads Upgrade existing main rural access • 39.4 km X 5 m road from Nam Hin Lake to the turn • Bridges, Box culverts, bank stabilization off to the cave access road. (South • DBST surface section -R01) (TIIG-LAO-W02) • Not in protected forest • 16.4 km X 5 m • Bridges, Box culverts, bank stabilization Upgrade existing main rural access • DBST surface road from Road No.13N to Chom • As per revised Design May 2020: road sections with Ong Cave (North Section -R02) grades of 12% and higher and sections through (TIIG-LAO-W02a) residential areas, which are executed in concrete, with concrete side drains • Not in protected forest • 2.2 km X 5 m Upgrade existing short access road • DBST surface to cave (R01.1) (TIIG-LAO-W02) • Chom Ong Cave Access 21

• Not in protected forest B. Tourist facilities • 4,500 m2 • Gravel • 60 new imported 3-4 tall trees Construct new vehicle car park • Single Bitumen Surface Treatment (SBST) • Not in protected forest • 13 Kiosks • 12 rest rooms • 1 unit (male/female) at car park • Septic system (under construction) Construction of new public toilets • Lighting and water supply • Inside the parking area • Not in protected forest Construction of new tourist information / reception center, ticket • Lao Standard kiosk, souvenir, food & beverage • In the protected forest (just close to edge of the forest) outlets Improved solid waste management • Plastic garbage bin system to include rubbish bins in • 40 units, 50 litre capacity strategic locations C. Works inside and in the vicinity of the cave Upgrade access path and steps • 88 m from end of the short access road • 300 m concrete trail with concrete steps and handrails to cave entrance • In the protected forest Landscaped public open space to • Lao Standard include picnic areas • 1 unit (male/female) Walking paths inside the cave • With septic system including handrails and illumination. • With lighting and water supply • In the protected forest (just close to edge of the forest) D. Associated Facilities • Location: STA 9+300 to STA 9+500 • Dimensions: 100 m x 200 m Camp 1 W02 • Features: Engineer Office, warehouse, dormitory, kitchen, parking area, toilets • Location: STA 20+175 to STA 20+275 Camp 2 W02 • Dimensions: 100 m x 200 m • Features: dormitory, kitchen, parking area, toilets • Location: STA 35 +700 to STA 35+900 Camp 3 W02 • Dimensions: 100 m x 200 m • Features: dormitory, kitchen, parking area, toilets • Location: STA 14 + 600 to STA 14 + 800 Stockpile 1 W02 • Dimensions: 200 m x 400 m • Features: Crushed stones • Location: STA 21 + 200 to STA 21+400 Stockpile 2 W02 • Dimensions: 70 m x 250 m • Features: Mix Sub Base and Base Course • Location: STA 34 + 500 to STA 34+750 Crushing and batching plant W02 • Dimensions: 800 m x 500 m and W02a • Features: Parking area, Crushed stones, Machineries • Location: STA 5+500 till STA 5+600 • Dimensions: 100m x 40m Camp 1 W02a • Features: dormitory, restaurant & kitchen, parking area, toilets • Location: STA 8+450 till STA 8+500 Camp 2 W02a • Dimensions: 50m x 40m

• Features: dormitory, restaurant & kitchen, parking area, toilets • Location: STA 8+050 till STA 8+150 Stockpile 1 W02a • Dimensions: 20m x 30m • Features: Crushed stones

Figure 4: Sections of 37.2 km access road

Figure 5: A section of 16.4 km access road – Makjuk Village at km 4+00

Figure 6: A section of 16.4 km access road – entrance to Kieo Joulou Village at km 8+00

Figure 7: Short access road to the cave (last 2.2 km)

Figure 8: The location of tourist reception area and car park at the edge of the forest

Figure 9: Chom Ong Cave

V. DESCRIPTION OF ENVIRONMENT

A. Project’s Area of Influence

66. Administratively, the subproject is located in Muang Xai and Namor Districts, Oudomxay Province (Figure 10). The Chom Ong Cave Access Road, leading from Muang Xai District to B. Chom Ong Village is located in western rural zone of the Muang Xai and Namor districts; and is a hilly dirt road, which makes access to the village difficult during rainy season.

Figure 10: Location of Xay District

67. The potentially affected environment in the project area is defined principally in regard to two factors: (i) the nature and scale of the proposed action; and (ii) the sensitivity and circumstances of the environment in which the proposed action will occur or issues of special concern.

68. The nature of the actions proposed within the context of the current project is largely construction of linear objects (39.4 km + 16.4 km of access road upgrading) and limited point objects (rehabilitation of new tourist information / reception centre, ticket kiosk, souvenir, food & beverage outlets and public toilets and construction of car park).

69. The 39.4 km of main loop road traverses mostly agricultural lands, rice fields, productive/scrub forest, small villages, and water streams including a lake in the vicinity of the start point of the main access road (R01) (Figure 11). The shoulders of the road beyond the surface to be improved are either used for agriculture or are steep and have been left to grow over with scrub vegetation from the initial road development and past road repairs. The traffic along the road is light and generally dominated by motorbikes and trucks carrying corn.

70. The 2.2 km short access road traverses some rice fields, scrub forest and water streams. The cave including the small tourist reception area is located in the protected forest.5

71. The 16.4 km road section of main loop road begins at the Highway 13 between Oudomxay and Boten (the Laos-Chinese border) and traverses rolling agricultural land and forest and passes through the village of Ban Nam Bor Ta Kai, Ban Makjuk, Ban Kiew Cha Lou and Ban Chom Ong. Mostly corn being grown on the steep slopes, with upland rice field in

5 Chom Ong Village leader, 2013 25

the more flat regions. The traffic along the road is light with motorcycles and agricultural vehicles and the occasional tour mini vans.

Figure 41: Location of Project and environmental receptors-north section6

Figure 52: Location of Project and environmental receptors-south section 6

72. The sensitive receptors within the 200 m area of the project site were identified based on-site investigations and are listed in Table 2.

Table 2: Receptors within project area of influence Access Road Sensitive Receptors & Distance from Project Site km South Section Km 0 – Km 10 • Settlement: (i)B. Thasalieng Village on the right side of the road km3-4 (50 M); (ii) B. Na Gam Village on the left side of the village (50 m); ( • Environmental resource: (i) lake on the right side of the road km 0 – km 5

6 Roughly developed map to show the environmental receptors 26

Access Road Sensitive Receptors & Distance from Project Site km (50 m – 300 m); (ii) water stream flows along the right side of the road start from km 5 • Agricultural Resource: agricultural lands along the road (50 m) Km 10- Km 20 • Environmental resource: (i) Water stream flows along the access road from km5 to km15 (10-100 m) • Settlements: (i)Village B. Lang on the left side of the road km 11-12 (50m), (ii) B. Mokha Village on the left side of the road at km 18 (50 km) • Agricultural Resource: agricultural lands along the road (50 m) Km 20 - Km 30 • Settlement: Village B. Nampra on the both side of the road at km 25-27 (50 m) • Agricultural resource: agricultural lands on the right side of the road at km 20 (50 m), km 25-27 (50-100m) Km 30- Km • Agricultural resource: agricultural lands mostly on the left side of the road 37.2 km 33 – km 37 (50-100m) • Settlement: Village B. Chom Ong at right side of the road at km 35 (50 m) • Environmental Resource: water stream flows along the road at km 33-36 Short Access • Agricultural Resource: rice fields along the road (10-50m) Road Cave area • Physical Cultural Resource: Cave it self • Environmental resource: protected forest; • Environmental resource: river inside the cave, and cave fauna North Section Km 0 – Km 10 • Settlement: (i)Nam Bor Ta Kai village at km 0+000 – km 2+950, Makjuk Village at km 2+950 – km 7+900, Kieo Joulou Village at km 7+900 – km 13+800, Chom Ong village at km 13+800 – km 16+450 • School: at km 7+900 in Kieo Joulou Village • Agricultural resource: agricultural land km 4 – km 5 on the left side of the road, km 6 - km 7 on the left side, km 8 - km 9 on the right side Km 10 – Km • Agricultural resource: Km11 - Km 12 on the both of the side of the road (50 16 m) B. Geography and Topography

73. Oudomxay Province, which covers an area of 15,370 km2, is mountainous with elevation ranging between 300 –1,800 m above sea level. The north of Laos hosts a variety of karst landscapes ranging from highly karstified areas to tower karst and highaltitude limestone plateaus. Chom Ong cave in Oudomxay is one of the major river cave with a length of 18.4 km. The cave burrows in a forested kart ridge near Ban Chom Ong Village. It is currently the 3rd longest cave of Laos and 10th longest in Southeast Asia.7

74. Chom Ong Cave. The Chom Ong system stretches along a 4 km long mountain ridge. A river enters through a block fall at the northern end and resurges 4 km later at the southern tip of the ridge. The cave has four entrances with the main entrance being an upper dry passage on the southern end of 8.5 m width and 4 m height. The ridge hosts impressive river and fossil passages with dimensions 20 m wide and 25 m high (Figure 13). The cave river and the fossil level are connected by steep passages and shafts in several places. A large tectonic fault resulted in two huge overlaying chambers measuring 100 m by 30 m in length/width and a height of up to 50 m each. From here the cave changes the character to one main river

7 Ten Years of Exploration and Over 100 km of Caves Surveyed in Northern Laos- Northern Lao- European Cave Project

passage with two more upper levels of partial passage. The northern entrance is very narrow due to blockage by stones and mud.7

Upper fossil main entrance of Chom Ong on the River passage of the Cave southern ridge end. Figure 13: View from the entrance and inside the cave

Figure 14: Map of Chom Ong Cave 7

C. Meteorology and Climate

75. The climate of Lao PDR is strongly influenced by the annual monsoon cycle, with the wet SW monsoon from April to October bringing around 90% of annual rainfall. Oudomxay Province has a moderate monsoon climate however, because of high elevations; temperature variation is greater than other parts of the country. Temperatures in February and March average between 18 0C and 19 0C, while temperatures from April to May exceed 30 0C. Cyclones developing in the South China Sea can make landfall in Viet Nam and then inland over northern parts of Lao PDR. Although diminishing in strength as the cyclone tracks inland, 28

it still brings strong winds and heavy rainfall.8

D. Vegetation type

76. Land cover in this region is mainly un-stocked forest and mixed upper deciduous forest. Most of the land along the roads is used for agriculture. The main cropping products are rice and corn (one crop a year), vegetables, bananas, fruit trees and others. Over the years more degraded forest or un-stocked forest has been converted into agricultural upland for corn or rice production. Summary of the main forest categories found in the Project area can be found in Table 3.

Table 3: Forest types within project area of influence Items Forest types Access Improvements Chom Ong STA 0+000 till STA 39+400 Cave within 39.4 km road section • Conservation forest of village (mixed forest) • Un-stocked forest, bush land • Spiritual forest (cemetery) • Production forest (teak plantation) • Degraded forest (upland rice and corn cultivation) • Protection forest (bamboo forest in front of the cave) Access Improvements Chom Ong • Cave within 16.4 km road section STA 0+000 till 16+400 • Conservation forest of village (mixed forest) • Un-stocked forest, bush land • Spiritual forest (cemetery) • Production forest (teak plantation) • Degraded forest (upland rice and corn cultivation) Source: Compiled by National Environmental Specialist for MICT

77. The area of intervention of the Access Improvements to the Chom Ong Cave subproject is mainly covered by forest bamboo and wood and shrub land, starting from the foothills up to the top of smaller hills in the area. However, there are some remaining mixed deciduous forest and evergreen forests along the rivers, streams, on steep slopes, and on the top of the mountains.

78. Natural vegetation is the upper mixed deciduous forest in which some representative tree species are Dipterocarpus alatus, Afxelia xylocarpa, Pterocarpus macrocarpus, Xylia kerii. Lagerstroemia tormentors, Peltophorum dasyrachis, and bamboo species. In fallow Land, some secondary tree species and bushes like Peltophorum dasyrachis and Largerstoemia tomentosa, Eupatorium odoratum (French grass), Imparata cylindrical (lemon grass) are commonly found. Some components of the subprojects are located inside or adjacent to forested areas.

E. Hydrology, Water Resources and Quality

79. Oudomxay province has good water resources in three primary watersheds defined by the Nam Ou river basin which flows in a north-western direction, the Nambeng catchment

8 Preparation of Environmental and Social Management Framework for the South East Asia Disaster Risk Man- agement Project for LAO PDR- Preliminary Environmental and Social Assessment, Prepared for World Bank Group, August 2016 29

which drains southerly to the Mekong River, and the Nam Tha basin. The surface water resources are comprised of approximately 60 small and large rivers.

80. Muang Xai District is situated in the Nam Ko River basin. Nam Ko River, which is 85 km, starts approximately 55km north of Oudomxay province, runs through the town site and then turns north again to drain into the Phak River. The Nam Ko is a sub-catchment to the Lower Mekong River Basin, an area of high biodiversity levels, and a key resource to the livelihood and economic sustainability of the Khmu people living in the region.

81. The Nam Hin river, which is tributary of Nam Ko River flows in the vicinity of the access road to the Cave. Nam Him lake is located in the north of the first 5 km section of the access road. There are a few streams along the road, which are tributaries of the Nam Hin River. And there is a river inside the cave named Nam Kaang.

F. Air Quality and Noise

82. Being a remote, rural area of the Lao PDR, the air quality is qualitatively good. Noise and dust is limited to the light vehicle traffic along the roads, and from sound generated from the village activities.

G. Climate Change9 83. The Government of Lao PDR ratified the United Nations Framework Convention on Climate Change (UNFCCC) in 1995 and the Kyoto Protocol in 2003. This strategy builds on the country's commitment to its climate change adaption efforts. With around 70% of the Lao population relying on subsistence agriculture for their livelihoods, climate change effects, such as unpredictable rains and extended dry seasons, will have a significant impact on the lives of people across the country.

84. Lao PDR is not a major contributor to climate change but is likely to be disproportionately affected. The country is concerned about the serious consequences of climate change on economic development, human capacity, poverty reduction and environment sustainability. Lao PDR is highly climate-vulnerable, and the country’s greenhouse (GHG) emissions were only 51,000 gigagram (Gg)10 in the year 2000, which is negligible compared to total global emissions. Despite this, Lao PDR has ambitious plans to reduce its GHG emissions while at the same time increasing its resilience to the negative impacts of climate change as detailed in Intended Nationally Determined Contribution (INDC)11.

85. The (General Circulation Model) GCMs forecasts warming trends across the whole country with regional variations in magnitude. Mean annual temperatures are projected to 12 13 increase 0.1 - 0.3 degrees centigrade per decade with warming occurring in all seasons. The greatest rainfall increases will occur during the wet season while dry season periods are

9 National Strategy on Climate Change Lao PDR, UNDP-2010 10 The latest GHG inventory in Laos presented in the Second National Communication on Climate Change of Lao PDR (2013) used data of the year 2000. 11 Intended Nationally Determined Contribution, LAO PDR, 30 September 2015 12 UNEP/AIT Regional Resource Centre for Asia & the Pacific. 2013. Assessment, Gaps and Needs for SE Asian Countries for Addressing Impacts, and Vulnerability to Climate Change 13 In FAO 2011. Managing Climate Change Risks for Food Security in Lao PDR. Rome 30

projected to become longer. Projected increases in rainfall are 10‐30% in the eastern and southern part of the country, which will see an increase in the frequency and severity of storm events.

H. Natural Disasters 86. Lao PDR has a comparatively low natural disaster profile compared to the rest of the South East Asian (SEA) region. The main hazards in Lao PDR are annual river- and flash- floods, landslides, forest- and community-fires, acute water shortages during specific months of the year, occasional wind storms and typhoons, agricultural pests, rodent infestations and animal- and human-epidemics.14

87. In the north of the country, the topography is mountainous with numerous rivers. Oudomxay Province which is located in the northwest of the country is characteristic of this mountainous topography. The province is prone to flash floods with the most devastating effects exhibited in the Oudomxay provincial capital Muang Xay in 1945, 1985, 2008 and 2013. Flood damage in the provincial capital was largely caused by inundation of excess water from the Nam Ko River and its tributaries, including the Nam Mao, Nam Sin and Nam Hin.8

I. Ecological Resources 1. Biodiversity 88. Biodiversity in Oudomxay is still considered to be high. The provincial forests support tiger, elephant, deer, muntjak deer, bear, boa, turtle, Amyda catelageane, wild boar and many other animals. Plant diversity is also rich with such varieties as agar wood, Phyllanthus Milabilis, hopea, ironwood (Maidengnam), honey orchid, rattan, Debrenaesia hypoleuca, bamboo, mushroom, herbs and other species.

89. The village-protected forest, which surrounds the cave (Figure 15), has some small and medium-size animals including wild goats, mouse deer, muntjac, and wild dog. There are also a few species of bats inside the cave. It is also reported that two species of spiders found inside the cave may be new discoveries, which are Sinopoda tham Jäger, 2012, Pholcus steineri Huber, 2011.15

Figure 15: The protected forest in front of the cave

14 Developing a national risk profile of Lao PDR-Part1: Hazard Assessment, UNDP, 2010 15 Biospelological research in the Lao PDR Helmut Steiner, Hesse federation of Cave and Karst Research. 31

2. Protected Sites and Species 90. There are a total of 24 national protected forests disseminated through the country. One of them named Phou Hiphi Conservation Area, covers 87.350 ha area on the east bank of the Nam Kor and Muang Xai District.16 The Nam Kat, a tributary of the Nam Ko, flows through the center of this new NPA. It contains a mixture of pristine old-growth forest with giant dipterocarps (nyang oil tree), limestone outcrops, and mountains surrounding the eastern side of Oudomxay town.17 The project area, which is located in western side of the Muang Xai District is not inside the borders of Phou Hiphi national conservation area.

91. The area surrounding the cave is a protected forest at the village level (Figure 15), which is managed by Village Forestry Unit. Protected forests including surface waters (i.e. streams & rivers) are areas designed for the conservation of wildlife and biodiversity, and should be protected from development. Trees are not allowed to remove in protected areas.18

92. According to detailed designs, the walkway and steps to the cave are inside the protected forest, the tourist reception area is located at the edge of the protected forest, and the access roads, car park and toilets are outside the protected forest.

J. Physical Cultural Resources 93. Chom Ong Cave system, which is the subject of the project is, is a recently rediscovered natural attraction, which is recognized as the 3rd longest cave in LAO PDR and the 10th longest in whole South East Asia.7 The cave is not only one of the longest caves in South East Asia but one of the most beautiful and interesting caves. It has impressive huge stalagmite and stalactite formations as well as vast glittering parts, and also geologically interesting parts (shields, floe calcite etc.)19

K. Socio-economic Condition 94. Livelihood. Chom Ong area along the road under the W02 package there are a total of 12 villages with 1377 households and a total population of 7,822 people. Along the road under the W02a package there 4 villages, with 248 households and a total population of 1384 persons. The prevailing occupation in this area is subsistence farming. Shifting cultivation (slash and burn) with rice for consumption and corn as cash crop are the common production methods. Due to the lack of other income opportunities, farming is the main way for the population in the area to make a living. However, the production is only sufficient for 7 months of the year. Therefore, during the rainy season many people have to work at the fields of other villages to earn money or rice.20

95. Agriculture. Land use for agricultural and forestry in Oudomxay include rice, corn, rubber, eucalyptus tree, forest products.

96. Tourism. Oudomxay has been enjoying spillover tourists from surrounding provinces,

16 Fundamentals of Ecology, Pha Tad ke Botanical Garden – Luang Prabang-2013 17 Nam Ou River Basin Profile Summary Document- Environmental& Social Characteristics of a Key Basin in Lao, IFC & MONRE, 2017 18 DONRE in Oudomxay 2013 19 http://www.tourismlaos.org/show_province.php?Cont_ID=792 20 The Development of Chom Ong Cave as an Ecotourism Destination in Northern Laos- European Cave Project & Provincial Tourism Dept of Oudomxay, 2013 32

mainly from Luang Prabang. Foreigners stop by, yet the average length of stay is short. There have been efforts to boost tourism, especially ecotourism, in the province. In 2007, the Tourism Department was established in Oudomxay. According to the Lao National Tourism Administration, in 2008, approximately 102,000 tourists visited Oudomxay. In 2012, the province had 15 hotels, 62 guesthouses, and 158 restaurants, most of which were located in Muang Xai and Pak Beng (a riverine traffic junction town). 21

97. In 2006, the province’s tourism authority became aware of Chom Ong Cave, about 40 km from Muang Xai. However, villagers of Ban Chom Ong knew about it since generations before, using its most accessible areas for hunting bats and exploiting guano. Since then, measures were taken to prepare the village for a creation of value of the cave, in line with ecotourism. In the future, when infrastructure allows, the cave will become a main tourist attraction in the sub-region. 21

VI. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES

A. Positive Impact and Environmental Benefits

98. The benefits of the subproject are summarized below:

99. Improved access and transportation and strengthened flood protection. The project will significantly improve existing transport condition of the villages along the access road which is dusty in dry season, muddy in wet season, and does not have drainage. The residents will have better road access and a more comfortable living environment, particularly during the rainy season, when local flooding will be eliminated or much reduced with the project through (i) adequate grading and drainage in lowland-areas, (ii) bank stabilization along steep-sloped sections of the road, (iii) upgraded bridges along the road withstanded increased river levels.

100. Poverty reduction and social benefits. The road access improvements to Chom Ong cave combined with the improvements to the cave facilities will enhance the overall tourist experience which should increase the number of tourists that the site can accommodate at any one time, and also in time should increase the number of tourists that visit the site. It is expected that all residents of Ban Chom Ong village (pop. 730) and ten other villages in the area will directly benefit from the subproject as a result of the increased tourism activity and improved access to markets and social services.

B. Impacts Associated with Project Location and considerations during design stage

a. Land Acquisition and Resettlement.

101. The main resettlement impacts of the subproject are outlined in the RPs and Addendums, however can be summarized and divided as follows:

21 Department of Planning and Investment, Oudomxay Province 33

• The area which has been used now for parking lot, kiosk and toilets. A total of seven households lost paddy land and have been compensated already.

• Two road section on W02 package namely: (i) Section STA15+625 – 17+900 was realigned to avoid a hill in which the contractor encountered large rocks that could not be feasibly removed, and it was decided to direct the road around the base of the hill instead; (ii) The alignment in section STA 31+000 - 33+330 was shifted into the hill side to avoid the road being very close to edge of a steep slope. A total of 38 households have mainly lost upland garden (51,076m2) and some minor loss of paddy land (805m2).

• All along the road of the W02a package there are three types of impacts. The four communities using village land for agricultural production, consisting mainly out of corn and upland rice. Due to the cutting and spoiling of contractor these lands will be partly impacted but permanently impacted. The total combined loss in these four villages is 26,222m2. Furthermore there is temporary loss of residential land and structures due to construction of camp and associated facilities. There is combined total temporary loss of 3,950m2 and 2 residential structures.

b. Ecological Resources - Protected Areas

102. The Chom Ong cave and the area immediately in front of the cave are in protected forest, where wildlife and biodiversity should be protected the cutting and damage to trees is forbidden. The works in front of the cave, inside the protected forest, will include upgrading existing walkway, and construction of tourist reception area (including reception centre, kiosk, souvenir, food & beverage outlets). In order to mitigate potential impacts on protected forest followings have been considered during detailed designs: (i) reception area buildings has been located close the inside edge of the forest at the locations which will not require removal of trees; (ii) widening of the walkway to the cave has been kept minimum to ensure that no tree need to be removed; (iii) car park has been located outside edge of the forest to minimize both construction and operation phase impacts. .

c. Physical Cultural Resources

103. Chom Ong Caves has geological and touristic significance. Artificial illumination inside the cave may increase the temperature of the cave and encourages the growth of the green plants. In order to prevent such potential impact the illumination system has been designed (i) with the light-emitting diodes (LEDs) which do not increase temperature; (ii) with automatic switch system to shut down the lighting whenever the user is absent which also brings a benefit in saving energy resources and reduced energy costs during operation.

d. Flooding Risk

104. The project area is prone to flash floods caused by tributary (Nam Hin) of Nam Ko River (refer para 81). In order to prevent flooding: (i) adequate grading and drainage in lowland-areas has been included to the designs; (ii) bank stabilization along steep-sloped sections of the road has been placed to prevent erosion and subsidence; (iii) The upgraded bridges along the road has been withstanded increased river levels and flows anticipated from increased regional rainfall.

C. Mitigation Measures and Actions during Pre-construction

1. UXO Clearance 105. Care must be taken to ensure that sites for earthworks e.g., excavations, trenches are free of (UXO) prior to construction. A UXO Clearance Certificate must be obtained prior to site possession and ground breaking by the contractor. If any sites are suspected to have unexploded ordnance they should be surveyed by UXO Lao. If such ordnance is detected, clearing work will need to be commissioned prior to undertaking civil works. After removal is complete a clearance certificate must be issued and approved by the Detailed Design and Supervision Consultant (DDSC).

2. River Sand Usage 106. Use of river sand for construction purposes is prohibited without prior permission. The works may require removal of river bed material. Sand or aggregate extraction from rivers should only be done at DONRE approved locations and in licensed areas. Dumping of spoil material must be at places approved by DONRE, PIU ad DDSC

3. River Gravel Usage 107. Use of river gravel for construction purposes is prohibited without prior permission. There is a large amount of gravel needed for the road upgrades and the parking areas. Gravel extraction from rivers should only be done at DONRE approved locations and in licensed areas. All materials must be supplied from sources approved by DONRE, PIU or with the approval of the DDSC.

4. Borrow areas 108. It may be necessary to use materials from borrow pits, borrow areas or quarries for construction. Materials may need to be moved along borrow roads. Such activities can cause noise, dust and traffic management impacts. All materials supplied from borrow areas must be licensed by private operators or approved by DONRE. The contractor must submit copies of such permits to the DDSC before moving any such materials.

5. Spoil Disposal 109. Minor Spoil disposal may be needed during the scarification of the original road surface. Dumping of wet overburden randomly on public or private property is expressly forbidden as it may cause soil contamination, siltation runoff and flooding. If any overburden has to be dumped the contractor must obtain approval from DONRE. Spoil disposal sites must be identified, designed and operated to minimize impacts and maximize land stability, and clearly indicated in the contractor’s construction environmental management plan (CEMP).

6. Construction camps 110. It may be necessary to establish construction camps for accommodating workers, storing materials and as a laydown area for prefabricated parts. Such camps must have the prior approval of the DDSC before they can be used or occupied. It is preferred that workers are accommodated in locally rented property rather than on temporary camp quarters for reasons of hygiene and sanitation. Worker camps and laydown areas will be located outside the village protected forest, where cave is located. Alternatively, there are vast amounts of suitable public land available for camps and materials storage areas. If such a camp is necessary, it must be approved by DONRE and DPWT before occupancy. 35

7. Preparation of CEMPs 111. The EMP is general in nature as certain specific details, such as location of works areas, construction camps or borrow pits are not known at the time of tender issue. After appointment and before mobilization the successful contractor must prepare his own version of the EMP known as the Construction EMP (CEMP). This must give specific details of locations of borrow areas, borrow roads, workers camps and other facilities. The Construction EMP (CEMP) must be submitted to the DDSC for their approval within 30 days of contract signing and approval must be obtained before any works commence.

8. Capacity Building Training 112. The EMP includes capacity building of the PCU and the PIUs. It is noted that PCU and PIU will need strengthening, particularly on monitoring and reporting, and contractors may need training on developing and implementing a CEMP, with specific guidance on appropriate behaviour and activities for sensitive site features. At the time of preparation of the CEMP, training will be given to the contractors, the PCU and the PIU. DONRE will also be invited to attend. At regular intervals (to be determined) capacity building training will be given. There is a line item included in the DDSC budget of $10,000.00 for such training. It is planned that training exercises at a cost of $2,500 a time for capacity building exercises will be carried out with the PIU under the supervision of the International Environmental Specialist and the National Environmental Specialist.

D. Environmental Impacts and Mitigation Measures during Construction

1. Construction-related common impacts 113. The construction-related impacts are noise, dust, erosion, sedimentation, solid and liquid waste pollution, increased risk of worker and public injury. Measures to mitigate and manage potential common impacts associated with the construction phase of the infrastructure developments are given below. The regulations on construction in Lao PDR are not well developed. To minimize the impact of construction on the public, and workers, national regulations guidelines for worker and public safety in the workplace should be followed. The IFC World Bank Environment, Health, and Safety Guidelines (2007) that govern the safe and orderly operation of civil works should be followed if national directives are incomplete or absent. Measures to be followed include, but are not limited, to the following:

• All construction vehicles and equipment should be maintained in proper working order, and not operated at night if possible, to minimize noise;

• Speed limits should be posted and adhered to by construction vehicles;

• Where possible construction vehicles should use different roads or dedicated lanes of roads not shared by the public;

• Dedicated fuel storage areas must be established away from public areas and marked clearly. It is preferable to use established gas stations for refilling vehicles rather than store fuel on site;

• Storage of bulk fuel should be on kerbed concrete slabs away from the public and workers camps;

• Fuel storage areas and tanks must be clearly marked, protected and lighted;

• Contractors should be required to have an emergency plan to handle fuel and oil spillage;

• Open excavations should be fenced, and trenches covered where public walkways or vehicles must cross;

• Trees and other vegetation at all construction sites and along road corridors should be protected with minimal removal;

• No tree removal is allowed in protected and conservation (preservation forests);

• The creation of new borrow pits must be approved by DONRE, and begin with a plan to restore the pit to the original state as soon as possible with vegetation and fencing and signage to protect the public;

• Aggregates (e.g., sand, gravel, rock) that are transported by truck should be covered;

• Prolonged use of temporary storage piles of fill should be avoided, or covered, or wetted regularly to prevent dust and erosion;

• Regular use of water sprays should be employed at construction sites to minimize dust;

• Local workers should be used as much as possible to prevent or minimize influx of migrant workers, and incidence of social disease and community unrest;

• Worker camps must have adequate domestic waste collection facilities and sufficient pit latrines that are located away from public areas and surface waters as per Law on Industry No.01/99/NA (1999);

• Sediment control and silt traps should be constructed around all excavation / trench sites and along all surface waters to prevent soil erosion and contamination of surface water by sedimentation.

• Spoil disposal sites must be identified, designed and operated to minimize impacts and maximize land stability. Approved spoil disposal sites will be identified in the CEMP. Principles to be followed in the siting and layout of spoil disposal areas are: (i) minimize transportation and the need for temporary storage; (ii) avoid potential flood areas or flood ways; and (iii) be small, and have minimal encroachment on cultivated land or forestland.

2. Specific Impacts and Mitigation Measures for the Subproject

a) Road works and car parks 114. Among the common construction impacts given above (para 112), the mains impacts of the road works are: (i) noise, dust, public safety along the main access road particularly for the road sections that pass through villages; (ii) loss of roadside lands and vegetation, (ii)pollution and sedimentation of the water streams along of road sections in the vicinity of water streams, which can be mitigated through common mitigation measures given below.

115. In order to mitigate potential impacts on Noise and Vibration levels:(i) work will be scheduled according to the noise rating of the machinery used and the distance to sensitive receptors to achieve acceptable noise level compliance. Attention to road surfaces near village areas and the erection of temporary noise barriers will reduce noise impacts from transport vehicles. The use of heavy vehicles and drills/excavators near sensitive structures,

walls, and residences will be limited. Blasting mats and the careful design of blasting operations will be implemented to limit ground-borne vibrations and air overpressure shocks to sensitive areas. (ii) rock crushing, concrete-mixing, and similar activities sites will be located at least 300m away from sensitive areas; (iii) Low noise machinery or the equipment with sound insulation will be used when working within 100 m from villages; (iv) machinery will be properly maintained to minimize noise; (v) Temporary noise barriers or hoardings will be erected around the construction activities to shield the noise from equipment when there are residences, schools, health clinics or temples within 80 m of the noise source; (vi) noisy equipment will not be used at night.; (vii) when night time work is required (and approved by PIU) communities and residents will be informed if night time construction work shall occur nearby residences (no night time construction within 500 m of the nearest household); and (viii) Contractor will agree with nearby schools, hospitals and residents regarding heavy machinery work schedule to avoid any unnecessary disturbances.

116. In order to mitigate potential DBST related dust impacts: (i) Asphalt plants and mixers will be located as far away as possible (at least 200 m downwind) from the nearest sensitive receptor (such as household, hospitals, and schools); (ii) Asphalt, hot mix and batching plants will be equipped with fabric filters and/or wet scrubbers to reduce the level of dust emissions.; (iii) Personal protective equipment (PPE) such as goggles, gloves and respirators will be provided to construction workers doing asphalt concrete and cement concrete road paving to minimize skin exposure to and inhalation of fumes and dust.

117. In order to mitigate potential dust impacts due to construction activities e.g stockpiles, trucks carrying earth etc.: (i) Site borrow pits and spoil disposal sites will be at least 300 m from residential areas so as to reduce dust from these sites; (ii) Water will be sprayed at least twice each day on unpaved areas, haul roads and exposed dust-prone stockpiles. Frequency to be increased if construction activities are generating dust and/or during windy conditions; (iii) Vehicle speed will be ≤ 8 km/h in unpaved areas including unpaved haul roads. Speed limit sign will be posted in these areas; (iv) Water will be sprayed on construction sites and material handling routes where fugitive dust is generated; (v) Effective dust suppression measures will be implemented near sensitive receptors such as schools, hospitals, or housing; (vi) Fuel & chemicals will be covered / stored to minimize emissions; (vii) Trucks carrying earth, sand or stone will be covered with tarps or other suitable cover to avoid spilling; (viii) Construction vehicles and machinery will be maintained to a high standard to ensure efficient fuel-burning (note that local standards do not exist for vehicle emissions).

118. In order to mitigate potential impacts on public safety along the main access road particularly for the road sections that pass through villages: (i) warning signs will be installed at the construction sites in order to warning people of potential dangers; (ii) Physical/warning barriers installed to limit access to construction sites, whenever possible; (iii) Heavy machinery will not be used after daylight.

119. There are possible impacts on loss of vegetation, agricultural land along the access road. In order to mitigate potential impacts: (i) Encroachment of heavy equipment on adjacent areas will be controlled and minimized as much as possible; (ii) Approved tree removal and replanting plan, construction site re-vegetation plan will be implemented; (iii) No tree will be removed during construction unless approved by PIU/DDSC; (v) For every one tree removed, at least three in suitable city locations will be replanted after construction; 38

120. There are possible impacts on pollution of the water streams during construction of road sections in the vicinity of water streams and construction of bridges due to discharges construction waste. Increases in suspended solids as a result of earth moving activities and erosion, construction plans will include erosion control prescriptions for borrow pits and quarries construction, and other construction work areas. In order to mitigate potential impacts: (i) contingency plans will be developed and implemented for control of oil and other dangerous substances (Spill Management Plan); (ii) Fuel storage, maintenance shop and vehicle cleaning areas will be stationed at least 300m away from the nearest water body; (iii) Construction wastes and materials (e.g. fuel) will be properly contained during construction; (iv) Wastes will be removed from site and taken to approved disposal facilities; (v) Water collection basins and sediment traps will be installed in all areas where construction equipment is washed; (v) Effective septic treatment and disposal systems will be installed at construction camps; (vi) Bitumen should only be spread on designated road beds not near or in any surface waters.

121. There are possible impacts on soil erosion and sedimentation of the water streams during construction of road sections adjacent to water streams and construction of bridges due to soil erosion. Erosion potential exists for all construction sites. Causing instability of slopes, stockpiles and sedimentation of waterways. In order to prevent potential impacts: (i) Soil erosion management plan to be prepared by the contractor and to be approved by the DDSC before construction starts; (ii) preserve top soil, rehabilitate and revegetate after use. The area of soil clearance will be minimized; (iii) Slope stability will be maintained at cut faces by implementing erosion protection measures; (iv) Construction in erosion and flood-prone areas will be mainly restricted to the dry season; (v) Silt runoff will be controlled and soil stockpiles will be covered; (vi) Temporary soil stockpiles will be located in areas where runoff will not induce sedimentation of waterways; (vii) Disturbed surfaces will be properly sloped and re-vegetated; (viii) Slopes on both sides of any culverts will be protected to prevent soil and water loss; and (ix) Protection measures for river embankment works, cut slopes, material stockpiles and other areas at risk of soil erosion prior to periods of heavy rainfall will be implemented.

b) Tourist reception area 122. Apart from the common construction impacts (refer para 112) the specific impacts of construction of tourist reception area is possible destruction of vegetation and wildlife in the protected forest surrounding the cave. In order to mitigate potential impacts: (i) The construction working area will be clearly demarcated; (ii) The workforce will be made aware that there should be no encroachment to areas outside of the working area. (iii) the trees close to reception area buildings will be surrounded with warning tape to take attention when working in the vicinity of the trees; (iv) the work force will be made aware that capturing any wildlife during construction is prohibited;

c) Inside Cave works 123. Installation of illuminated walking paths inside the cave may affect cave geology and habitat. : In order to minimize the potential impacts (i) All project work, prior to implementation, will be approved by DDSC; (ii) tools and materials used for walkway and lighting will be stored outside the cave when possible; (iii) All equipment and materials will be cleaned of excess dirt and debris prior to cave entry; (iv) Use of chemicals within the cave will be avoided and, if necessary, will only be used upon approval of DDSC; (v) All bolting, trenching and digging

within the cave must be approved by DDSC; (vi) construction vibration impacts will be minimized; (vii) All workers within the cave will wear appropriate clothing and will use adequate safety equipment including helmets etc; (viii) all project related refuse will be removed from the cave. (xi) Chance find procedures will be established for undiscovered underground cultural or historic sites that might be identified during project implementation.

E. Environmental Impacts and Mitigation Measures during Operation

1. Roads 124. A potential operation phase impact of the upgraded access roads to the cave is an increase in traffic accidents and injuries arising from an increase in traffic of larger and faster vehicles using the roads. In order to mitigate potential impacts: (i) traffic law including speed limits should be strictly enforced; (ii) Traffic direction and speed control sign boards should be traffic direction sign boards.

2. Tourist reception area and car park 125. The potential operational phase impact at the tourist reception area is increased solid waste litter, and local pollution from the toilet blocks and ABR system (that if they are not maintained properly) due to targeted increase in tourist activity. In order to mitigate potential impacts. (i) The toilet facilities must be cleaned and maintained regularly; (ii) Septage from the new toilet blacks must be regularly removed and disposed in nearby DONRE approved disposal area; (iii) Garbage bins must be emptied and removed regularly, and disposed in DONRE- approved site

3. Inside the cave 126. Any foreign matter deposited in caves takes a lot longer to biological degradation than it would over ground. Food deposits particularly, cause fungal growth which destroys the pristine cave environment. In order to prevent any potential impacts during operation; (i) part of the cave tour, visitors should be informed that no food or drink is allowed in the cave, (ii) signs on the stairs to the cave should be places reiterate this point; (ii) cave guides should pick up any rubbish constantly.

F. Induced and Cumulative Impacts

127. The primary goal of the project to increase tourism and associated socioeconomic development in the subproject areas of the five provinces is complemented by the potential negative direct and indirect impacts of the increased tourism on the valued environmental components, community, and cultural physical resources that are the target objects of tourism development. The potential induced and cumulative impacts of the project are important factors that must be considered carefully.

128. More tourists to the subproject area can result in greater consumption of goods and resources which can put greater strain on key amenities such as the management of cleanliness of local environment and community. An increase in the number of tourists in subproject area could lead to social issues stemming from the interaction and potential conflicts between local and foreign cultures. Moreover, the wildlife populations and natural geology of the Chom Ong caves could be negatively affected by the increased presence and disturbance of tourists in and round the caves.

129. A potential induced impact of tourism development which is extremely difficult to prevent and separate from the subproject activities is independent commercial and urban development that develops to serve and benefit the tourism created by the project. Increased tourism development at subproject areas easily becomes the seed for much greater and non- sustainable growth in both tourism and urban development in the subproject areas. Indirect induced tourism-socioeconomic growth is usually broader geographically and more difficult to manage with respect to impacts on environmental resources because of the different parties & interests involved, and lack of accountability.

VII. ANALYSIS OF ALTERNATIVES

130. Without-project scenario. The without-project scenario would result in (i) continued development of pollution problems at the sites as a result of inadequate solid and domestic waste management; and (ii) continued access problems to the cave, (ii) continued obstacle on development of the cave tourism; (iv) continued low income of the local residents.

131. With-project scenario. Compared to the without-project alternative, the with-project alternative will contribute improved access and environmental conditions at the tourist sites leading to improved tourism which ultimately is increased tourist numbers and revenue.

VIII. PUBLIC CONSULTATION

A. Approach

132. A stakeholder consultation strategy was developed to meet the requirements of meaningful consultation as stipulated by ADB SPS (2009). The strategy embodied the principles of meaningful engagement, transparency, participation, and inclusiveness to ensure that affected and marginalized groups such as women, and the poor, were given equal opportunities to participate in the design of the project. The stakeholder consultations on environment issues built upon the parallel social impact assessment of the various subprojects.

133. The approach to stakeholder consultations for environmental concerns or issues associated with the subprojects in Lao PDR consisted of the following paths of inquiry and data collection:

• Key Informant Interviews (KII) with households and village authorities conducted by the social development team.

• Focus Group Discussions (FGD) with key stakeholder groups such as consultations with provincial agencies and other stakeholders conducted by social development team with an additional survey assistant hired during the interim mission in July 2013.

• Plenary consultation and disclosure meetings with the villagers impacted by the Project conducted by the national environmental specialist in May 2017 (W02), May 2019 (W02) and May 2020 (W02a).

B. Identification of Stakeholders

134. Stakeholders were identified and engaged in a participatory manner. Stakeholder communication to date has focused on institutional stakeholders, affected communities, and persons directly affected by proposed subproject interventions. Project stakeholders include:

• Institutional stakeholders including the (i) project EAs and PIUs (ii) provincial and national agencies; private sector groups, chambers of commerce and potential participants in private public partnerships (PPP) for management of tourist sites;

• Mass organizations such as the Lao Women’s Union (LWU) and the Lao Front for National Construction (LFNC) which provided input for the design of the various subproject interventions, and which might participate in implementation of measures and interventions;

• Communities living in the subproject areas who will benefit from the project, and who have an interest in identifying measures to enhance or maximize the benefits, communities within the subproject area who may be directly and/or adversely affected, and who have an interest in the identification and implementation of measures to avoid or minimize negative impacts;

• Vulnerable and/or marginalized groups who have an interest in the identification and implementation of measures that support and promote their involvement and participation in the project.

C. Discussion Guide

135. Questions and information requests were posed to stakeholders to guide discussions of the individual and grouped stakeholders during feasibility phase and detailed design phase. The question posed to the stakeholders in the detailed design phase are given in Table 4.

Table 4: Guiding Questions for Public Consultations

1. When you know about the construction of proposed project? 2. How is the local transport condition? 3. What is your general opinion and attitude towards the proposed project? 4. Is the proposed project construction benefit to improvement of local transport condition? 5. Do you think the proposed project construction will be benefit to the local economy development? If yes, what kind of benefits? 6. What’s the major environmental impact by the proposed project during construction and operation periods? 7. If the proposed project need resettlement and land acquisition, what’s your attitude towards this issue? 8. What you want the government and construction company to do during construction and operation periods?

D. Summary of Public Consultation 42

136. The public and stakeholder consultations for environmental issues associated with the subprojects in the province were held with the parallel social surveys and social impacts assessment of the subprojects.

137. The initial stakeholder consultations were held in July 2013. They were repeated in July 2017 with essentially the same group of stakeholders. The stakeholder consultations showed overall positive support for the project and subsequent follow up inquiries confirmed that this opinion had not changed.

138. The DDSC implemented public consultation in Ban Chom Ong with the participation of village chiefs, villagers, DPWT and PIU. Summary of the public consultation is given below. The list of the participants and photos are given in Annex 1.

139. PIU, together with DPWT and DONRE, and the international and national safeguard specialist organized plenary village meetings as part of the Due Diligence Mission in early May 2020. During this meeting following topics were discussed: (i) project impacts on agricultural land; (ii) mitigation strategies to avoid large social and environmental impacts; (iii) entitlements of the individual households and community as a whole; and (iv) Grievance Redress Mechanism,

Table 5: Summary of stakeholder views Benefits identified by stakeholders • Promote the development of local tourism industry; • Improve the education condition for these villages since it is easy for the students to go to school • Develop new income resources; • Increasing tourism provides new livelihood opportunities for households. • Better access for tourists to local villages providing new opportunities. • Easier travel in rainy season. • Good road can save travel time and reduce costs. Project Response Major environmental • Accident during construction and The EMP prescribe mitigation sub- impacts during operation stages; plans for common civil works construction and • Dust pollution during disturbances caused by the road operation phase construction; upgrades to Chom Ong (e.g., • Spoil disposal in residential area, regular wetting) and noise garden and paddy land pollution, erosion & sedimentation • Noise disturbance at night; management of traffic, and traffic • Traffic jam during construction safety, and management of solid stage and hazardous waste. Traffic management includes provision of alternate access lanes Expected property loss/damage is addressed explicitly during pre- construction phase, and followed through construction phases via grievance redress mechanism

140. A new round of consultations was held in early June 2020, primarily focusing on land acquisition and resettlement (LAR) impacts resulting from the W02a package. A detailed description of LAR impacts and proposed compensation plan are included in a Resettlement Plan Addendum (June 2020).

E. Future Public Consultation Programme

141. Although public consultation has been carried out before the project commenced there will be ongoing further consultation with the public and interested or affected stakeholders throughout the life of the project. The DDSC will ensure that regular community liaison takes place in order to address any concerns.

IX. GRIEVANCE REDRESS MECHANISM AND PUBLIC DISCLOSURE

A. Grievance Redress Mechanism

142. A well-defined grievance redress mechanism (GRM) and resolution mechanism will be established to address all affected stakeholders grievances and complaints regarding environment, land acquisition, compensation and resettlement in a timely and satisfactory manner. The grievance redress mechanism and appeal procedures will be explained in a project information booklet (PIB) that will be distributed to all stakeholders.

143. Stakeholders or affected persons (AP) by the subprojects are entitled to lodge complaints regarding any environmental issue or any aspect of the land acquisition and resettlement requirements such as entitlements, rates and payment and procedures for resettlement and income restoration programs. Stakeholder complaints can be made verbally or in written form. In the case of verbal complaints, the committee on grievance redress will be responsible for making a written record during the first meeting with the stakeholders.

144. A Grievance Committee will be organized in villages comprising local leaders designated for such tasks. The designated officials shall exercise all efforts to settle affected stakeholder issues at the village level through appropriate community consultation. All meetings shall be recorded by the grievance committee and copies shall be provided to affected stakeholders. A copy of the minutes of meetings and actions undertaken shall be provided to the DICT, PIU, DONRE and ADB upon request.

Table 6: Grievance Committee (GC) Members Organization Function/Specialty Head of PCU Head of overall GC Head of PIU Head of Provincial GC PIU Env. Safeguard Specialist Provincial Access Point/Deputy PGC Village Head/Commune Leader Local Access Point Contractor’s EHS Officer Contractor’s Access Point DDSC’s Environmental Specialist DDSC’s Access Point

145. The procedures for grievance redress are set out below. The procedure described below should apply easily to both social and environmental issues and be consistent with the legal process for resolution of disputes in Lao PDR, and exemplifies the desired collaboration among the different levels of government as recently described by Decision 7536/MONRE (2012).

• Stage 1: If a concern arises, the affected person (AP) tries to resolve the issue of concern directly with the contractor/DDSC through Village Head/ Commune Leader; Complaints from affected stakeholders for the first time shall be lodged verbally or in written form with the village head or commune leader. The complaints shall be 44

discussed with the affected stakeholder and the designated Head of Grievance Committee as well as the members of the committee. It will be the responsibility of the Head of Grievance Committee to resolve the issue within 15 days from the date the complaint is received. All meetings shall be recorded and copies of the minutes of meetings will be provided to APs. • Stage 2: If no understanding or amicable solution can be reached or if no response is received from the grievance committee within 15 days from filing the complaint, the affected stakeholder can elevate the case to the Provincial Grievance Committee (PGC/PIU). The PGC notes the date of complaint and passes it immediately to the PGC Deputy for action. The PGC Deputy will then (i) assess the eligibility of the complaint, (ii) consult relevant members of the PGC to identify a solution and (iii) give a clear reply within 1 week from the Complaint Date. • The reply will be either a solution following discussions with the AP, contractor, DDSC or Stage 3 will begin. If a solution is found, the contractors during construction and the Contractor during operation should implement the solution and convey the outcome to the PGC within 1 week of the solution being identified. This means if the PGC finds a solution, it will be implemented within 2 weeks (10 working days) from the date of complaint, allowing time for the contractor to install or purchase any additional mitigation materials/equipment; • Stage 3: If no solution can be identified by the PGC or if the AP is not satisfied with the decision of the PGC the PGC Deputy will organize a multi-stakeholder meeting to be held within three weeks of the Complaint Date. All members of the PGC and particularly PCU in Vientiane and relevant external stakeholders will be invited. PCU will lead the meeting. The meeting should result in a solution acceptable to all, and identify responsibilities and an action plan. The contractors during construction and the contractor during operation should implement the agreed solution and convey the outcome to the PCU within one week, which will be four weeks after the Complaint Date; • Stage 4: If the multi-stakeholder hearing process is not successful, the PCU will inform ADB accordingly, and the ADB project team will organize a special mission to support the PCU in addressing the problem and identifying a solution within 3 weeks; and • Stage 5: If the AP is still not satisfied with the reply in Stage 4, she/he can go through local judicial proceedings and/or file a complaint through the ADB Accountability Mechanism. 146. The executing agency will shoulder all administrative and legal fees that will be incurred in the resolution of grievances and complaints if the affected stakeholder wins the case. Other costs incurred by legitimate complaints will also be refunded by the project if the affected stakeholder wins their case.

147. In cases where affected stakeholder does not have the writing skills or are unable to express their grievances verbally, affected stakeholder is encouraged to seek assistance from the recognized local groups, district DONRE staff, or NGO or other family members, village heads or community chiefs to have their grievances recorded in writing, and to have access any environmental or social surveys or valuation of assets, to ensure that where disputes do occur, all the details have been recorded accurately enabling all parties to be treated fairly. Throughout the grievance redress process, the responsible committee will ensure that the 45

concerned affected stakeholder is provided with copies of complaints and decisions or resolutions reached.

148. If, efforts to resolve disputes using the grievance redress procedures remain unresolved an affected stakeholder has the right to directly discuss their concerns with the ADB Southeast Asia Department through the ADB Lao PDR Resident Mission (LRM). If APs are still not satisfied with the responses of LRM, they can directly contact the ADB Office of the Special Project Facilitator (OSPF).

Stage 1: AP talks to Village Head/Commune Leader

Stage 1: Village Head talks to Contractor’ EHS Officer / DDSC’s Env. Specialist Env

If issue not resolved

Stage 2: Provincial GC- (PIU) Day 1 of Is the complaint No PIU Explains to Complaint eligible? AP

Yes

PIU Env. Safeguard Specialist Registers Eligible Complaint Details and Complaint Respond to AP

Yes Talk to Contactor within 1 week Can PIU solve the problem? of Complaint Date Implement solution within 2 No weeks of Complaint Date Stage 3: Stakeholder Meeting with the participation of PCU within 3 weeks of Complaint No Date

Solution Action Plan. Implement Yes Can Stakeholder Meeting solve the problem? Action Plan within 1 week of Meeting Date No

Stage 4: PCU InformsNo ADB Team Dispatched within 3 weeks

Yes Respond to AP & Agree Time- Can ADB and PCU solve the problem? scale for Solution

Stage 5: Resolve through Lao Judi- cial System No

Figure 16: GRM Process 46

B. Public Disclosure

149. The subproject components were explained to potentially affected stakeholders during public consultations. The formal dissemination of information is the beginning of continued information disclosure and stakeholder involvement as the project is implemented. As part of the stakeholder communication strategy regular information exchange meetings with stakeholders is required throughout implementation of the subprojects.

150. The IEE must be easily available to the stakeholders contacted during examination in written and verbal forms in the local language. The IEE will be available on the provincial DICT web sites, at DICT offices, district offices, and subproject sites. Similarly, all project reporting with specific reference to stakeholder consultation minutes, environmental monitoring, and reports on EMP implementation released by the EA/PCU will be available at the same offices and web sites. The IEE will also be available on the ADB web site. After implementation, all environmental and EMP reporting submitted by the EA/PCU will also be available on the ADB web site.

X. CONCLUSIONS

151. An initial environmental examination (IEE) was prepared for the subproject in April 2014, which covered the 37 km road northern section, the 2km access toad to cave, and the 16 km southern road section. Detailed designs for the entire Oudomxay subproject were completed with no major design changes in 2017. Due to budget constraints, only the 37km northern section and 2km cave access road were taken forward and the updated IEE, taking into account of the DED for the 39kms, was prepared in July 2017. Re-inclusion of the 16km road southern road section in 2019 necessitated the updating of the IEE, which was completed in May 2019. This document is the updated IEE prepared in May/June 2020 based on revised DED for the 16km road section prepared during Q1 of 2020 and ADB-approved on 7 May 2020 to minimize social and environmental impacts and to ensure the works can be completed within the time available (i.e. before 31 December 2020). The May 2020-approved revised design for the 16km road section significantly reduced the impacts on agricultural land all along the 16.4 kms, and further optimizations of this design later in May 2020 mitigated impacts on residential land in Majuk Village.

A. Major Environmental Impacts

152. This updated IEE of the subproject in Oudomxay confirms that potential environmental impacts are largely restricted to the construction phase of the subproject components and are which can be mitigated through the implementation of measures given in EMP. The common construction related disturbances such as noise, dust, soil erosion, sedimentation, solid and liquid waste pollution, increased risk of worker and public injury can be managed with standard construction practices and management guidelines (e.g., IFC/World Bank 20071). Amongst the common construction impacts the major ones and specific environmental impacts depending on the project location are summarised below:

153. The works in the protected forest. The Chom Ong cave and the area immediately in front of the cave are in protected forest, where wildlife and biodiversity should be protected, and the cutting/damage to trees is forbidden. The works inside the protected forest, will include upgrading existing walkway and steps to the cave, and construction of tourist reception area

(consists of reception centre, kiosk, souvenir, food & beverage outlets, and public toilets) in the edge of the forest. In order to mitigate potential impacts on wildlife and biodiversity: (i) The construction working area will be clearly demarcated; (ii) The workforce will be made aware that there should be no encroachment to areas outside of the working area. (iii) The trees close to reception area buildings will be surrounded with warning tape to take attention when working in the vicinity of the trees; (iv) the work force will be made aware that capturing any wildlife during construction is prohibited.

154. The works inside the cave. Installation of walking paths and illumination system inside the cave may affect cave geology and habitat: In order to minimise the potential impacts (i) All project work, prior to implementation, will be approved by DDSC; (ii) tools and materials used for walkway and lighting will be stored outside the cave when possible; (iii) All equipment and materials will be cleaned of excess dirt and debris prior to cave entry; (iv) Use of chemicals within the cave will be avoided and, if necessary, will only be used upon approval of DDSC; (v) All bolting, trenching and digging within the cave must be approved by DDSC; (vi) construction vibration impacts will be minimized; (vii) All workers within the cave will wear appropriate clothing and will use adequate safety equipment including helmets etc.; (viii) all project related refuse will be removed from the cave. (xi) Chance find procedures will be established for undiscovered underground cultural or historic sites that might be identified during project implementation.

155. The road works in the vicinity of the villages. More attention should be paid for noise, dust, public safety impacts of the road works when working in the vicinity of the villages. The impacts could be easily mitigated through common mitigation measures, including: (i)rock crushing, concrete-mixing, and similar activities sites will be located at least 300m away from sensitive areas; (ii) noisy equipment will not be used at night; (iii) Effective dust suppression measures will be implemented near sensitive receptors such as schools, hospitals, or housing; (iv)Trucks carrying earth, sand or stone will be covered with tarps or other suitable cover to avoid spilling; (v) Asphalt plants and mixers will be located as far away as possible (at least 200 m downwind) from the nearest sensitive receptor (such as household, hospitals, and schools); (vi) warning signs will be installed at the construction sites in order to warning people of potential dangers; (vii) Physical/warning barriers installed to limit access to construction sites, whenever possible; (viii) Heavy machinery will not be used after daylight.

156. The road works in the vicinity of the water streams has potential impacts of pollution and sedimentation of water streams, which can be mitigated through common practices including (i) stationing fuel storage, maintenance shop and vehicle cleaning areas at least 300m away from the nearest water body; (ii) removing the wastes from site and taken to approved disposal facilities; (iii)developing and implementing contingency plans for control of oil and other dangerous substances; (iv) Implementing the construction in erosion and flood- prone areas in dry season; (v) implementing protection measures for river embankment works, cut slopes, material stockpiles and other areas at risk of soil erosion prior to periods of heavy rainfall will be implemented.

157. Potential operation phase impact at tourist reception area is increased solid waste litter, and local pollution from the toilet blocks and ABR system (that if they are not maintained properly) due to targeted increase in tourist activity. In order to mitigate potential impacts: (i) The toilet facilities must be cleaned and maintained regularly; (ii) Septage from the new toilet blacks must be regularly removed and disposed in nearby DONRE approved disposal area; 48

(iii) Garbage bins must be emptied and removed regularly, and disposed in DONRE- approved site

158. Potential operation phase impact of the upgraded access roads to the cave is an increase in traffic accidents and injuries arising from an increase in traffic of larger and faster vehicles using the roads. In order to mitigate potential impacts: enforced, posted speed limits, and road signage should be installed to control speed, and to assist drivers navigate the roads.

159. Potential operation phase impacts inside the cave is fungal growth due to food litters thrown by the tourist tours which should be mitigated through (i) part of the cave tour informing visitors that no food or drink is allowed in the cave, (ii) placing signs on the stairs to the cave reiterate this point; (ii) picking up any rubbish constantly by cave guides.

160. An EMP has been prepared. This identifies potential impacts, gives the mitigation required, stipulates environmental monitoring plans, gives indicative costs for EMP implementation, and specifies the institutional responsibilities for the environmental management of the subproject.

161. Since, as mentioned, the revised design for W02a significantly reduced the potential environmental impacts resulting from the works, the EMP included in the updated and approved IEE prepared in 2019 remains adequate, and no changes are proposed.

B. Overall Conclusion

162. The findings of this updated IEE confirm that Oudomxay subproject is not anticipated to have any significant adverse environmental impacts. Public consultations indicated that the majority of the potentially affected people had a positive attitude toward the project as a whole and believed it would be beneficial. Any adverse environmental impacts associated with the project will be prevented, reduced to acceptable levels, or otherwise compensated, as set out in the EMP. In addition, institutional strengthening and personnel training will be established to ensure environmental sustainability of the project.

163. The updated IEE, which covers all aspects of the Chom Ong Cave Access Improvements subproject confirms that the sub-projects are Category B and that there are no overriding reasons why the project should not proceed.

ANNEX 1: Photos and participation list of Public Consultation Meetings Conducted in July 2017

Table 7: List of participants

Name and family No. Organization Position name Mr. Khamdeng 1 Chom Ong village Dept. Village’s chief Bounmanyxay 2 Mr. Kham yon Chom Ong Village Village’ Authority 3 Mr. Sy Amphai Chom Ong Village Village’ Authority 4 Mr. Bounlieng Chom Ong Village Village’s chief 5 Mr. Bounsien Chom Ong Village Dept. Village’s chief Mr. Bounchanh 6 Chom Ong Village Dept. Village’s chief Singvanhxay Mr. Bounkhum 7 PIU Project Manager Missengxay 8 Mr. Bounngeum Chom Ong Village Head of village’s unit 9 Mr. Thongkhan Chom Ong Village villager Mr. Sisavang 10 DICT Staff Portheavong Mr. Chanhpheng 11 DPWT Civil Engineer Manivanh 12 Mr. Somsanouk EPTISA Consultant 13 Mr. Monzurul Hog EPTISA International Consultant Mr. Bounthan 14 EPTISA Consultant Sayavong Mr. Vanh 15 PIU Manager Minhboupha 16 Ms. Outhai Xong DONRE Staff 17 Mr. Khamphone Chom Ong Village villager 18 Mr. Thongphoun Chom Ong Village villager

Figure 67: View from public consultation implemented in July 2017

Table 8: List of Participants during the public consultation in May 6 -9, 2020

No. Name and family name Organization Position 1 Mr. Bounkouam Mitmeuangxay (BM) PIU Head of PIU 2 Mr. Van Mingboupha PIU Project Manager 3 Mrs. Kingphay Phounthilath PIU Technical 4 Mr. Saijai Yang PIU Accountant 5 Mr. Bounheuang Phanthasith (BH) TIIGP National Env. Specialist 6 Mr. Soulack Sishalath TIIGP RE 7 Mr. Sophanthavong TIIGP RE 8 Mr. Souksavanh TIIGP RE 9 Mr.Le Van Dung W02a Translator/Environment 10 Mr. Duong Hien Anh W02a Manager 11 Mr. Le Thang Toung Wo2 Translator/Environment 12 Mr. Sithilath Detkongphone DPWT Technical 13 Mr. Boun Vongvisouk DoNRE Technical 14 Mr. Paul van Strijp (PVS) TIIGP International Social SS 15 Mr. Kham Chitavong PIU

Figure 17: View from public consultation implemented in May 2020

ANNEX 2 Surface and Ground Water parameters analysis

Table 10: Groundwater Standards

No. Parameters Symbols Standard Values Unit

1 Color, Not determined 15 Not determined

2 Turbidity Not determined 20 NTU

3 Potential of Hydrogen pH 6.5-9.0 Not determined

4 Iron Fe 1.0 mg/l

5 Manganese Mn 0.5 mg/l

6 Copper Cu 1.5 mg/l

7 Chromium Hexavalent Cr6+ 0.05 mg/l

8 Zinc Zn 15.0 mg/l

2- 9 Sulphate SO4 250 mg/l

10 Chloride CI- 600 mg/l

11 Fluoride F- 1.0 mg/l

- 12 Nitrate NO3 45 mg/l

13 Total Hardness as CaCo3 500 mg/l

14 Hardness Non-carbonate as 250 mg/l CaCo3

15 Total Suspended Solid TSS 1.200 mg/l

16 Arsenic As 0.01 mg/l

17 Cyanide CN- 0.07 mg/l

18 Lead Pb 0.01 mg/l

19 Mercury Hg 0.001 mg/l

20 Cadmium Cd 0.003 mg/l

21 Selenium Se 0.01 mg/l

22 Bacteria (Standard Not determined 500 Colonies/cm2 Plate Count Method)

23 Coliform Bacteria Not determined 2.2 MPN/100cm3

24 E.coli Bacteria Not determined Mustn’t be available Not determined Source: National Environmental Standard Order No. 81/GOL (2017)

Table 11: Surface Water Quality Standards

Type of Standard Values Analysis No. Parameters Symbols Unit 1 2 3 4 5 Methods

1. Color, Odor and Not n n' n' n' Not Not Not Taste determ determined ined

2. Temperature tºC n n' n' n' Not ºC Thermomet determined er

3. Potential of pH 6-8 6-8 5-9 5-9 Not Not Electrometr Hydrogen determined determ ic pH Meter ined

4. Dissolved DO More 6.0 4.0 2.0 Less than 2 mg/L Azide Oxygen than 7 Modificatio n

5. Electro- Ec Less Less Less Less More than µS/cm Ec meter conductivity than than than than 4000 500 or or or equal equal equal 1000 2000 4000

6. Chemical COD Less 5-7 7-10 10-12 More than mg/L Potassium oxygen demand than 5 12 Dichromate Digestion: Open Reflux or Closed Reflux

7. Total coliform Not n 5000 20.00 Not Not MPN/ Multiple bacteria determine 0 Deter Determined 100 Tube d mine Fermentati ml d on Technique

8 Fecal coliform Not n 1000 4000 Not Not MPN/ Multiple bacteria determine Deter Determined 100 Tube d mine Fermentati ml d on Technique

9 Total TSS Less Less Less Less More than mg/L Glass Fiber Suspended than than than than 60 Filter Dise Solid 10 or or or equal equal equal 25 40 60

10 Phosphate PO4 Less 0.5 1 2 More than mg/L Ascorbic than 2 acid 0.1

- 11 Ammonium ion NH4 Less Less Less Less More than mg/L Kjekdahl than than than than 4 0.5 or or or equal equal equal 1.5 3 4

- 12 Nitrate-Nitrogen NO3 N n 5.0 Not mg/L Cadmium Determined Reduction

- 13 Ammonia- NH3 N n 0.5 Not mg/L Distillation Nitrogen Determined Nesslerizati on

14 Phenol C6H5OH n 0.005 Not mg/L Distillation, Determined 4-Amino antipyrine

15 Copper Cu n 1.5 Not mg/L AA-Direct Determined Aspiration 16 Nickel Ni n 0.1 Not mg/L Determined

17 Manganese Mn n 1.0 Not mg/L Determined

18 Zinc Zn n 1.0 Not mg/L Determined

19 Cadmium Cd n 0.003 Not mg/L Determined

20 Chromium Cr+6 n 0.05 Not mg/L Hexavalent Determined

21 Lead Pb n 0.01 Not mg/L Determined AA-Cold 22 Mercury Hg n 0.001 Not mg/L Vapour Determined Technique 23 Arsenic As n 0.01 Not mg/L AA-Direct Determined Aspiration, ICP

24 Cyanide CN- n 0.07 Not mg/L Pyridine Determined Barbituric Acid

25 Radioactive Radioactiv n Not mg/L GC e Determined - Alfa 0.1 54

- Beta - α 1.0 - ß 26 Organochlorine n 0.05 Not mg/L pesticide Determined

27 Dichlorobiphenyl DDT n 1.0 Not mg/L trichloro ethane Determined - α - 28 alpha-benzene n 0.02 Not mg/L BHC hexachloride Determined (C6H6CI6)

29 Dieldrin C12H8CI6O n 0.1 Not mg/L Determined

30 Aldrin C6H8CI6 n 0.1 Not mg/L Determined

31 heptachlor and C6H5CI7 n 0.2 Not mg/L Determined And

C10H8CI6O

32 Endrin C12H8CI6O n Mustn’t be available Not mg/L Determined Source: National Environmental Standard Order No. 81/GOL (2017)

APPENDIX 1 – Updated Environmental Management Plan – June 2020

Project Number: 46293-003 Loan Number: 3156-LAO June 2020

Lao People’s Democratic Republic: Greater Mekong Subregion Tourism Infrastructure for Inclusive Growth Project

Subprojects in Oudomxay Province

Prepared by the Ministry of Information, Culture and Tourism for the Asian Development Bank.

This environmental management plan 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. Your attention is directed to the ‘terms of use’ section on ADB’s website.

CURRENCY EQUIVALENTS (as of 26 May 2020) Currency Unit – kip K K1.00 = $0.000111 $1.00 = K 8,988

ABBREVIATIONS CEMP - Construction Environmental Management Plan DOH - Department of Heritage DAF - Department of Agriculture, Forestry and Fisheries EA - Environmental assessment DONRE - Department of Natural Resources and Environment DDSC - Detailed Design and Supervising Consultant DICT - Department Information and Culture and Tourism EIA - Environment Impact Assessment ECC - Environmental Compliance Certificate ECO - Environmental Control Officer EMP - Environment Management Plan ESIA - Environment and Social Impact Assessment EA - Executing Agency GMS - Greater Mekong Subregion IA - Implementing Agency IEE - Initial Environmental Examination IUCN - International Union for Conservation of Nature Lao PDR - Lao People’s Democratic Republic LWU - Lao Women’s Union MAF - Ministry of Agriculture, Forestry and Fisheries MICT - Ministry of Information, Culture and Tourism MOF - Ministry of Finance MONRE - Ministry of Natural Resources and Environment MPWT - Ministry of Public Works and Transport MRC - Mekong River Commission NBSAP - National Biodiversity Strategy and Action Plan NPA - National Protected Area O&M - Operation and Maintenance PIU - Project Implementation Unit PCU - Project Coordination Unit PPP - Public-Private Partnership PPTA Project Preparatory Technical Assistance (PPTA) REA - Rapid Environment Assessment TSS - Total Suspended Solids UXO - Unexploded Ordnance WREA - Water Resources and Environment Agency

WEIGHTS AND MEASURES oC – degree Celsius km – kilometer m – meter kg – kilogram ha hectare

NOTE: In this report, "$" refers to US dollars unless otherwise stated. 57

TABLE OF CONTENTS

APPENDIX 1 - Environmental Management Plan ...... 56 A. Introduction ...... 59 B. Institutional Arrangements And Responsibilities ...... 59 C. Summary of Potential Impacts and Mitigation Measures ...... 61 D. Monitoring and Reporting ...... 72 E. Environmental Reporting ...... 74 F. Institutional Capacity Building and Training ...... 75 G. Mechanisms for Feedback and Adjustment ...... 76

A. Introduction

1. This Environmental Management Plan (EMP) has been developed for “Chom Ong Caves Access Improvements” subproject in Oudomxay for the Greater Mekong Subregion Tourism Infrastructure for Inclusive Growth Project in Lao PDR (the project). The EMP defines all potential impacts of the subproject components and the mitigation and protection measures with the objective of avoiding or reducing these impacts to acceptable levels. The EMP also defines the institutional arrangements and mechanisms, the roles and responsibilities of different institutions, procedures and budgets for implementation of the EMP. The EMP seeks to ensure continuous improvement of environmental protection activities during preconstruction, construction, and operation in order to prevent, reduce, or mitigate adverse impacts and risks.

2. The EMP defines: (i) EMP objectives and structure; (ii) responsibilities and authorities for EMP implementation;, (iii) summary of the potential impacts and mitigation measures; (iv) environmental monitoring plan; (v) (vi) reporting requirements.

3. A draft EMP was prepared for the subprojects in April 2014. The EMP was updated according to detailed engineering designs as of July 2017, which excluded the 16.4km southern section of the loop road due to budget constraints, and approved by ADB in November 2017. In May 2019, following re-inclusion of the 16.4 km of the loop read earlier excluded, the IEE was updated accordingly, and it was concluded that the 2017 EMP was adequate to cover the re- included 16.4 km as well. The 2017/2019 EMP was included in the tender documents for civil works for the 16.4 km southern loop section (Package TIIG-LAO-W02a) and forms part of the contract between the client and the contractor. The contractor has been made aware that the requirements of the EMP are contractually binding. Failure to comply with the EMP is considered to be breach of contract and can result in financial penalties being imposed on the contractor.

4. The EMP was again reviewed in relation to the updated IEE prepared in May/June 2020 based on the revised detailed engineering design (DED) for the 16.4 km section prepared during quarter 1 of 2020 and approved by ADB in May 2020. This revised design significantly reduces potential environmental impacts, and as a result, it was concluded that the 2017/2019 EMP remains adequate and as a consequence no changes were made.

5. The conformity of contractors with environmental contract procedures and specifications is regularly monitored by the project’s safeguards consultants during implementation.

B. Institutional Arrangements and Responsibilities

6. Executing agency (EA). The Ministry of Information and Culture and Tourism (MICT) is the Executing Agency (EA) for the project and will take overall responsibility for successful implementation of the EMP.

7. Project Coordination Unit (PCU). The EA has established a Vientiane-based Project Coordination Unit (PCU) within the Tourism Development Department which, among other things, will provide Safeguards and Monitoring Coordination for the EMP. PCU will also keep in regular contact with DONRE on environmental training events and progress of implementation of the 59

project.

8. Project Implementation Unit (PIU). The provincial Department Information and Culture and Tourism (DICT) in which the project implementation unit (PIU) has been created will implement the EMP with support from the PCU. The PIU has a Safeguard Specialist (ESS) who will lead the implementation of the EMP in conjunction with the Environment, Health and Safety Officers (EHSOs) of the construction contractor(s). The ESS of the PIU will oversee the work of the EHSO of the contractor on the implementation of the CEMP for particular construction package.

9. Detailed Design and Supervision Consultant (DDSC). External support of the PIU for the implementation of the EMP was up to October 2019 provided by the International and National Environment Specialists (ES) of the DDSC. From December 2019 onwards, these responsibilities have been transferred to individual safeguards specialists (ISS) employed directly by the EA as individual consultants. Where this document refers to DDSC or DDSC-ES, this should now be read as ISS. The responsibilities of the safeguards specialists are: (i) updating EMP according to detailed engineering design, (ii) provide training to PIU-ESS and Contractor-EHSO for supervision and implementation of the EMP; (iii) provide technical direction and support to PIU for implementation of EMP; (iv) Provide periodical environmental construction supervision .

10. Construction Contractor. The main responsibility of the contractor is preparation of Construction EMP (CEMP) based on this EMP, which includes site specific details of locations of the borrow areas, roads and other facilities. The EHSO of the construction contractor will have following responsibilities: (i) Implement CEMP for construction phase of projects; (ii) revise and update CEMP when necessary and inform DDSC; (iii) provide trainings to workers for implementation of CEMP; (iv) prepare environment health and safety section of the monthly progress reports; (v) attend monthly progress meetings with the DDSC;

MICT

Executing Agency (EA) ADB ------Project Coordination Unit (PCU)

Oudomxay DICT ------Project Implementation Unit (PIU)

Detailed Design and Supervision Con- Environmental Safe- sultant (DDSC) guard Specialist ------(ESS) International and National Environ- mental Specialist (ES)

Construction Contractor ------Environment, Health and Safety Of- ficer (EHSO)

Figure 18: Responsibilities for Environmental Management

C. Summary of Potential Impacts and Mitigation Measures

11. Potential environmental issues and impacts during pre-construction, construction and operation phases, and corresponding mitigation measures are summaries in Table 11 sets out mitigation measures which are common to all construction works and those that are project specific. There are two types of mitigation measures:

(i) Measures that will permanently become part of the infrastructure such as landscape planting, road signage, engineering measures for preventing soil erosion should be included within the main civil work contract costs, and are not double-counted as part of the EMP costs. (ii) Temporary measures during the construction stage (e.g. dust suppression by watering, use of quiet / low noise powered mechanical equipment (PME), will need to be included in the tender documents to ensure that contractors budget these items in their bids.

Table 11: Environmental Management Plan

Responsibility Source of Issue/Potentia Item Mitigation or Safeguard Measures Location Implementati Supervision Funds l Impact on /approval A. Common for road works, car park, tourist reception area and other works outside the cave A.1 Pre-construction phase 1. Appoint at least one environment, health and safety Institutional (EHS) officer to manage environmental and health Construction Contractor - Contractor PIU/DDSC Strengthening and safety risks on construction sites by applying the sites staff measures given in EMP/CEMP. Capacity building for 2. Provide training to PIU on supervision of the PIU Office, Included in implementation implementation of CEMPs - construction DDSC PIU supervision and 3. Provide training to Contractors on preparation and sites contract supervision of implementation of CEMP CEMP CEMP 4. CEMP will be prepared based on this EMP provided Construction No marginal - Contractor PIU/DDSC preparation in tender documents by adding site specific details sites cost

UXO survey, & 5. Ensure Government and UXO LAO is consulted and Construction - EA/PIU removal clears areas where necessary sites UXO LAO Confirm Government approval of 6. Notify DONRE to confirm locations of sites for Entire PIU/DONRE/ No marginal - Contractor construction disposal of construction wastes and overburden. subproject DDSC cost waste disposal sites Obtain & 7. Comply with all statutory requirements set out by activate Government for use of construction equipment, and Construction No marginal - Contractor PIU/DDSC permits and operation construction plants such as concrete sites cost licenses batching. 8. Establish a GRM and appoint a GRM coordinator within PIU prior to construction. Grievance 9. Brief and provide training to GRM access points (PIU, PIU, Redress contractors). No marginal - - Contractor, EA, ADB Mechanism 10. Disclose GRM to affected people before construction cost DDSC (GRM) begins at the main entrance to each construction site. 11. Maintain and update a Complaint Register to document all complaints.

Responsibility Source of Issue/Potentia Item Mitigation or Safeguard Measures Location Implementati Supervision Funds l Impact on /approval

A.2 Construction phase

12. Use borrow pits and spoil disposal sites approved by DONRE, submit such permit to the DDSC before moving any material/any spoil disposal; Borrow pits 13. Avoid borrow areas and spoil disposal sites with long, and spoil Construction No marginal steep slopes, susceptible to erosion and include small Contractor PIU/DDSC disposal sites sites cost level cut-off drains to break up and redirect runoff; (if relevant) 14. Strip and store topsoil in a stockpile for reuse in restoration; 15. Avoid side casting of spoil on slopes; 16. Soil erosion management plan to be prepared by the contractor and to be approved by the responsible authority before construction starts; 17. Minimizing the area of soil clearance; 18. Maintaining slope stability at cut faces by implementing erosion protection measures; 19. Construction in erosion and flood-prone areas should be mainly restricted to the dry season; Construction Soil erosion 20. Control silt runoff and cover soil stockpiles; Contractor PIU/DDSC No marginal Prevention of sites 21. Locate temporary soil stockpiles in areas where runoff cost soil resources will not induce sedimentation of waterways; and quality 22. Properly slope and re-vegetate disturbed surfaces; 23. Protect slopes on both sides of any culverts to prevent soil and water loss; and 24. Implement protection measures for river embankment works, cut slopes, material stockpiles and other areas at risk of soil erosion prior to periods of heavy rainfall 25. Store chemicals/hazardous products and waste in clearly labelled containers on impermeable surfaces in secure, covered areas; 26. Remove all construction wastes from the site to approved waste disposal sites; Soil 27. Establish emergency preparedness and response Construction No marginal Contractor PIU/DDSC contamination plan (Spill Management Plan); sites cost 28. All spills of DBST should be cleaned immediately and handled as per hazardous waste management plan, and according to Government regulations. 29. Provide spill clean-up measures and equipment at each construction site; 63

Responsibility Source of Issue/Potentia Item Mitigation or Safeguard Measures Location Implementati Supervision Funds l Impact on /approval 30. Conduct training in emergency spill response procedures.

31. Develop and implement contingency plans for control of oil and other dangerous substances (Spill Management Plan); 32. Fuel storage, maintenance shop and vehicle cleaning areas must be stationed at least 300m away from the nearest water body; 33. Construction wastes and materials (e.g. fuel) will be properly contained during construction. Wastes will be Prevention of Pollution and Construction No marginal removed from site and taken to approved disposal Contractor PIU/DDSC water quality water streams sites cost facilities; 34. Water collection basins and sediment traps will be installed in all areas where construction equipment is washed; and 35. Effective septic treatment and disposal systems will be installed at construction camps. 36. Bitumen should only be spread on designated road beds not near or in any surface waters. To mitigate DBST related impacts: 37. Asphalt plants and mixers will be located as far away as possible (at least 200 m downwind) from the nearest sensitive receptor (such as household, hospitals, and schools); 38. Equip asphalt, hot mix and batching plants with fabric filters and/or wet scrubbers to reduce the level of dust Double emissions. Bituminous 39. Provide personal protective equipment (PPE) such as Surface goggles, gloves and respirators to construction Prevention of Treatment Construction No marginal workers doing asphalt concrete and cement concrete Contractor PIU/DDSC air Quality (DBST) sites cost road paving to minimize skin exposure to and production and inhalation of fumes and dust. dust during

construction To mitigate dust impacts: 40. Site borrow pits and spoil disposal sites must be at least 300 m from residential areas so as to reduce dust from these sites. 41. Water will be sprayed at least twice each day on unpaved areas, haul roads and exposed dust-prone stockpiles. Frequency to be increased if construction 64

Responsibility Source of Issue/Potentia Item Mitigation or Safeguard Measures Location Implementati Supervision Funds l Impact on /approval activities are generating dust and/or during windy conditions. 42. Control vehicle speed to ≤ 8 km/h in unpaved areas including unpaved haul roads. Post the speed limit sign in these areas. 43. Water will be sprayed on construction sites and material handling routes where fugitive dust is generated; 44. Effective dust suppression measures will be implemented near sensitive receptors such as schools, hospitals, or housing; 45. Fuel & chemicals will be covered / stored to minimize emissions; 46. Trucks carrying earth, sand or stone will be covered with tarps or other suitable cover to avoid spilling; 47. Construction vehicles and machinery will be maintained to a high standard to ensure efficient fuel- burning (note that local standards do not exist for vehicle emissions). 48. Locate sites for rock crushing, concrete-mixing, and similar activities at least 300m away from sensitive areas; 49. Deploy low noise machinery or the equipment with sound insulation when working within 100 m from villages; 50. Properly maintain machinery to minimize noise; Noise from 51. Erect temporary noise barriers or hoardings around Powered construction activities to shield the noise from Noise and Mechanical equipment when there are residences, schools, Construction No marginal Contractor PIU/DDSC vibration Equipment health clinics or temples within 80 m of the noise sites cost (PME) and source. vehicles 52. Restrict construction activities between 8am-6pm; 53. When night time work is required (and approved by PIU) due to traffic management etc. alert communities and residents if night time construction work shall occur nearby, and 54. Agreements with nearby schools, hospitals and residents regarding heavy machinery work to avoid any unnecessary disturbances.

Responsibility Source of Issue/Potentia Item Mitigation or Safeguard Measures Location Implementati Supervision Funds l Impact on /approval 55. Maximize the re-use of earth cut materials and C&D wastes on the project, including the re-use of old asphalt or concrete road pavements for subgrade materials. 56. Confined storage of solid wastes away from sensitive receptors and regularly take to approved disposal Construction facility; Construction No marginal Solid waste site refuse and 57. Provide appropriate waste storage containers for Contractor PIU/DDSC sites cost spoil disposal workers’ and construction wastes; 58. Use approved contractor to remove all wastes from sites; 59. Removal of residual materials, wastes and contaminated soils that remain on the ground after construction; and 60. Prohibit burning of waste. 61. The construction working area will be clearly demarcated; 62. The workforce will be made aware that there should Destruction of be no encroachment to areas outside of the working vegetation and area. wildlife in the 63. The trees close to reception area buildings to be protected constructed will be surrounded with warning tape to forest take attention when working in the vicinity of the trees. 64. Construction workers are prohibited from capturing any wildlife during construction. Construction No marginal Ecology In the access roads Contractor PIU/DDSC sites cost 65. Encroachment of heavy equipment on adjacent areas will be controlled and minimised as much as possible loss of 66. Comply with the approved tree removal and vegetation replanting plan, including vegetation protection agricultural (fencing) and construction site re-vegetation plan; land along the 67. No tree will be removed during construction unless widened approved by DDSC/PIU access road 68. Remove trees in early spring in order to ensure no nesting birds are disturbed; 69. For every one tree removed, replant at least three in suitable city locations after construction;

Responsibility Source of Issue/Potentia Item Mitigation or Safeguard Measures Location Implementati Supervision Funds l Impact on /approval 70. Tools and materials used for walkway and lighting will be stored outside the cave when possible; 71. All equipment and materials will be cleaned of excess dirt and debris prior to cave entry; 72. Use of chemicals within the cave will be avoided and, Destruction of if necessary, will only be used upon approval of cave habitat DDSC; 73. All bolting, trenching and digging within the cave must be approved by DDSC; 74. Construction vibration impacts will be minimized; 75. All project related refuse will be removed from the cave. 76. All project work, prior to implementation, will be approved by DDSC; 77. Tools and materials used for walkway and lighting will be stored outside the cave when possible; 78. All equipment and materials will be cleaned of excess dirt and debris prior to cave entry; 79. Use of chemicals within the cave will be avoided and, if necessary, will only be used upon approval of Physical DDSC; Impact on Construction No Marginal cultural 80. All bolting, trenching and digging within the cave must Contractor PIU/DDSC Cave geology sites Cost resources be approved by DDSC; 81. Construction vibration impacts will be minimized; 82. All workers within the cave will wear appropriate clothing and will use adequate safety equipment including helmets etc; 83. All project related refuse will be removed from the cave. 84. Establish chance-finds procedure for undiscovered underground cultural sites and objects 85. Site sanitation 86. Provide an adequate number of latrines and other sanitary arrangements at the site and work areas, and ensure that they are cleaned and maintained in a Occupational Included Health and hygienic state. Construction Health and Contractor PIU/DDSC contractors Safety 87. Provide garbage receptacles at construction site and sites Safety cost camps, which will be periodically cleared to prevent outbreak of diseases will be setup. 88. Discharge work camp wastewater into the municipal sewer system or treated on-site using a portable

Responsibility Source of Issue/Potentia Item Mitigation or Safeguard Measures Location Implementati Supervision Funds l Impact on /approval system.

89. Occupational Safety 90. Provide personal protection equipment (PPE), such as safety boots, helmets, gloves, protective clothing, goggles, and ear protection, in accordance with relevant health and safety regulations, for workers; Included Construction 91. Provide safety goggles, gloves and respiratory masks Contractor PIU/DDSC contractors sites to workers doing DBST road paving. cost 92. Provide ear defenders to workers operating and working near noisy PME. 93. Prepare and obtain approvals of method statements for hazardous activities such as working near water. 94. Food Safety 95. Provide a clean and sufficient supply of fresh water; 96. Inspect and supervise food hygiene in canteens on site regularly. Canteen workers must have valid Construction No marginal Contractor PIU/DDSC health permits. sites cost 97. If food poisoning is discovered, implement effective control measures immediately to prevent it from spreading. 98. Disease prevention and safety awareness 99. Construction workers must have physical examination before starting work on site. If infectious disease is found, the patient must be isolated for treatment to prevent the disease from spreading. From the second year onwards, conduct physical examination on 20% of the workers every year. 100. Establish health clinic at location where workers are concentrated, which should be equipped with Construction No marginal common medical supplies and medication for simple Contractor PIU/DDSC sites cost treatment and emergency treatment for accidents. 101. Provide induction and training by local health departments on prevention and management of communicable diseases. 102. Implement SITs/HIV/AIDS and other communicable diseases awareness and prevention program. 103. Provide training to all construction workers in basic sanitation and health care issues, general health and safety matters, and on the specific hazards of their 68

Responsibility Source of Issue/Potentia Item Mitigation or Safeguard Measures Location Implementati Supervision Funds l Impact on /approval work; 104. Provide particular training working on production, handling and application of bitumen to construction worker doing DBST 105. Others 106. Develop an emergency response plan to take actions on accidents and emergencies, including environmental and public health emergencies Construction No marginal associated with hazardous material spills and similar Contractor PIU/DDSC sites cost events; 107. Establish a Records Management System to store and maintain easily retrievable records (occupational accidents, diseases, spills, etc) incidents; 108. Temporary traffic management 109. Prepare a traffic control and operation plan together with the local traffic police prior to any construction. The plan shall include provisions for diverting or scheduling construction traffic to avoid morning and afternoon peak traffic hours, regulating traffic at road crossings with an emphasis on ensuring public safety Construction No marginal Contractor PIU/DDSC through clear signs, controls and planning in advance. sites cost 110. In case of lane closures, deploy workers to direct traffic. 111. Erect speed limit signs of 8 km/h on all unpaved haul roads and unpaved construction site areas as a means of controlling fugitive dust emission in Public Health unpaved areas. and Safety 112. Road sections passes along the villages 113. Install signs at construction sites warning people of potential dangers; Construction No marginal Contractor PIU/DDSC 114. Provide physical barrier to limit access to construction sites cost sites, whenever possible; 115. No use of heavy machinery after daylight. 116. Utility services interruptions 117. Assess construction locations in advance and identify potential for disruption to services and risks before Contractor, starting construction. Any damage or Construction local utility No marginal PIU/DDSC hindrance/disadvantage to local businesses caused sites service cost by the premature removal or insufficient replacement providers of public utilities is subject to full compensation, at the full liability of the contractor who caused the problem.

Responsibility Source of Issue/Potentia Item Mitigation or Safeguard Measures Location Implementati Supervision Funds l Impact on /approval 118. If temporary disruption is unavoidable, develop a plan in collaboration with relevant local authorities such as power company, water supply company and communication company to minimize the disruption and communicate the dates and duration in advance to affected persons. 119. Information disclosure 120. Erect construction billboards, which include construction contents, schedule, responsible person and complaint phone number, at the entry to each construction site and construction staging area. 121. Inform residents and businesses in advance of the road improvement activities, given the dates and duration of expected disruption and make aware of the project GRM. 122. Place clear signs at construction sites in view of the public, warning people of potential dangers such as Construction No marginal Contractor PIU/DDSC moving vehicles, hazardous materials, excavations sites cost etc. and raising awareness on safety issues. 123. Alert communities and residents if night time construction work shall occur nearby (no night time construction within 500 m of the nearest household). 124. Alert local communities of the time and location of hazardous and noisy activities such as piling and asphalt road paving. 125. Liaise with schools on examination periods and scale down construction activities during such periods if necessary. A.3 Operation phase

Disruptions of road and 126. Regularly inspect and maintain the road surface and upgraded DPWT PIU O&M budget drainage drainage system. roads Access Roads condition

Road safety 127. Strictly enforce traffic law to improve road safety and upgraded and traffic reduce traffic accidents. DPWT PIU O&M budget roads accidents 128. Install traffic direction and speed control sign boards, 129. The toilet facilities must be cleaned and maintained Tourist Solid and Tourist regularly; facilities in O&M cost of domestic DCIT PIU reception area 130. Septage from the new toilet blacks must be regularly the protected DICT waste pollution removed and disposed in nearby DONRE approved forest 70

Responsibility Source of Issue/Potentia Item Mitigation or Safeguard Measures Location Implementati Supervision Funds l Impact on /approval disposal area; 131. Garbage bins must be emptied and removed regularly, and disposed in DONRE- approved site 132. Part of the cave tour, visitors should be informed that Fungal growth no food or drink is allowed in the cave, Chom Ong O&M cost of Cave due to food 133. Signs on the stairs to the cave should be places DCIT PIU cave DICT waste reiterate this point; 134. Cave guides should pick up any rubbish constantly.

D. Monitoring and Reporting

12. An environmental monitoring plan was developed and is presented in Table 11. The purpose of the monitoring plan is to document the effectiveness of prescribed mitigation measures, and to document any unforeseen environmental impacts of the subprojects. The monitoring plan addresses the pre-construction, construction and operational phases of the subprojects. The Programme considers the scope of monitoring and supervision, environmental media, monitoring parameters, time and frequency, implementing and supervising agencies. Environmental monitoring will follow the methodology provided in the national standard methods for monitoring pollutants and criteria provided in national environmental quality standards.

13. Types of monitoring. 3 types of monitoring will be conducted under EMP.

i. Project readiness monitoring. To be conducted by PCU and DDSC-ES according to Project Readiness Indicators given in Table 12.

ii. Internal supervision and inspection. Regular and frequent supervision and inspection will be undertaken by the Environment, Health and Safety Officer (EHSO) of the Contractors, by the PIU’s ESS and DDSC’s ES on a daily, monthly and quarterly basis, respectively.

iii. Environmental Quality Monitoring. Air, surface water and noise quality monitoring will be undertaken with support provided by the DDSC-ES who will organise the field sampling and required laboratory analysis and provide technical direction and support to the PIUs for the implementation of the monitoring plans.

Table 12: Project Readiness Assessment Indicators

Indicator Criteria Assessment

EMP update • EMP was updated after technical detail design & approved by ADB Yes No Compliance with loan • The borrower complies with loan covenants related to project design Yes No covenants and environmental management planning Public involvement • Meaningful consultation completed Yes No effectiveness • GRM established with entry points Yes No Environmental • PIU ESS appointed Yes No supervision and monitoring in place • DDSC-ES appointed Yes No Bidding documents • Bidding documents and contracts incorporating the environmental Yes No and contracts with activities and safeguards listed as loan assurances environmental • Bidding documents and contracts incorporating the environmental safeguards Yes No provisions of the EMP Yes No Contractor readiness • CEMP established for construction sites • Contractor’s EHSO appointed Yes No EMP financial support • The required funds have been set aside for EMP implementation Yes No

72 Table13: Environmental Monitoring Plan Environmen Estimated Cost Responsibility & tal Location, Parameters, Monitoring Technique &source of funds Frequency Media/Issue Pre-Construction Phase • Method: Review of PIU’s and contractor’s Project readiness to implement the project based on PCU, DDSC – once - readiness assessment of Project Readiness Indicators before construction (Table 12) • Method, Location: quality monitoring for water 1000 $ stream flows along the access road. (4 monitoring points: 1&2 upstream and downstream of the Allocate cost for DDSC-ES, PIU-ESS will water stream which flows along the access road contractor organise Surface from km5 to km15; 3&4: upstream and water quality downstream of the water stream which flows Analyses will be done in along the access road from km33 to km36 ) Licensed Laboratory – • Parameters: Turbidity, TSS, heavy metals (As, Cd, Pb), oil and grease, pH, DO, COD, BOD, temperature, T-P, T-N Construction Phase • Method, Location: Visual inspection of all construction sites Soil erosion • (i) adequacy of soil erosion EHSO - daily and Parameters: prevention measures; (ii) adequacy of soil PIU-ESS – monthly - contaminatio contamination prevention techniques; (iii) DDSC-ES - quarterly n evidence of excessive soil erosion or soil contamination • Method, Location: Visual inspection of all construction sites Solid and EHSO - daily • (i) adequacy of solid and liquid liquid waste Parameters: PIU-ESS – monthly - waste management, storage and containment management DDSC-ES - quarterly system; (ii) presence of solid waste dumps, waste fires • Method, Location: Visual inspection of all construction sites EHSO - daily Vegetation • Parameters: adequacy of vegetation protection PIU-ESS – monthly - measures; evidence of damage to vegetation; DDSC-ES - quarterly compliance with approved tree management plan • Method, Location: Visual inspection and interviews with construction workers and Construction EHSO - daily contractors at all construction sites site health PIU-ESS – monthly - • (i) adherence to the approved and safety Parameters: DDSC-ES - quarterly CEMP; (ii) performance of the EHSO; (iii) worker complaints and concerns. • Method, Location: Visual inspection of all construction sites, informal interviews with nearby residents • Parameters: (i) adherence to approved Community temporary traffic management plan; (ii) adequacy PIU-ESS – monthly health and of construction site signage and fencing; (iii) - DDSC-ES - quarterly safety adequacy of temporary noise mitigation measures; (iv) accidents involving public and workers; (v) emergencies and responses; (v) public complaints about noise, air pollution, construction site safety etc. • Method, Location: quality monitoring for water DDSC-ES, PIU-ESS will 4000 $/year Surface stream flows along the access road. (4 monitoring organise water quality points: 1&2 upstream and downstream of the water stream which flows along the access road Analyses will be done in Allocate cost for

73 Environmen Estimated Cost Responsibility & tal Location, Parameters, Monitoring Technique &source of funds Frequency Media/Issue from km5 to km15; 3&4: upstream and Licensed Laboratory contractor downstream of the water stream which flows 4 times per year along the access road from km33 to km36 ) • Parameters: Turbidity, TSS, heavy metals (As, Cd, Pb), oil and grease, pH, DO, COD, BOD, temperature, T-P, T-N • Method, Location: Air quality monitoring, on DDSC-ES, PIU-ESS will 3000$/year pavements adjacent to intersections, at organise Air quality construction site boundaries, inside boundaries of sensitive receptors (schools, hospitals) Licensed laboratory – Allocate cost for • Parameters: Dust, NOx, SO2, CO, PM10, PM2.5 4 times per year contractor • Method, Location: Noise monitoring, on DDSC-ES, PIU-ESS will 2500$/year pavements adjacent to intersections, at organise Noise construction site boundaries, inside sensitive receptors (schools, hospitals) Licensed laboratory – Allocate cost for • Parameters: dB(A) 4 times per year contractor EMP • Method, Location: Review of project’s Compliance adherence with EMP and loan covenants PCU, DDSC - yearly Monitoring • Parameters: EMP and loan covenants Physical • Method, Location: Visual observation, inside the EHSO - daily cultural C Caves PIU-ESS – monthly - resources • Parameters: any destruction to cave geology DDSC-ES - quarterly • Method, Location: Visual observation, along the Ecological EHSO - daily walkway and other project sites and cultural PIU-ESS – monthly - • Any damage to ecological property Parameters: DDSC-ES - quarterly environment Construction Completion and Operation Phase • Method, Location: Visual inspection of replanted PIU-ESS – 4 times Vegetation trees during first year of - • Parameters: Tree growth and health operation • Method, Location: Method, Location: Interview with potentially affected people (AP) adjacent to Interview PIU-ESS – twice during completed project sites; - with AP first year of operation • Parameters: (i) Overall satisfaction with project outputs; (ii) concerns and complaints.

E. Environmental Reporting

14. Monthly compliance and progress reports. Contractor will submit monthly progress reports which include an Environment Section prepared by EHSO and summarizes compliance with EMP/CEMP requirements, implementation of mitigation measures, monitoring activities, received complaints & response to complaints, occurred HSE accidents etc. The PIU-ESS will produce brief monthly reports to PIU after his monthly site monitoring visits on EMP implementation progress and compliance, and will report any issues immediately to the PIU.

15. Quarterly project progress reports. According to project’s Project Administration Manual (PAM) (para 120) PIU’s are responsible for preparing and submitting quarterly project progress reports on monitoring activities to the PCU for consolidation and subsequent submission to ADB. The quarterly reports will include compiled monthly reports submitted by the construction contractors, and PIU. The report will include a summary of environmental issues arising from

74 monitoring activities during the reporting period.

16. Semi-annual environmental monitoring reports. To ensure proper and timely implementation of the EMP and adherence to the agreed environmental covenants, the PCU will submit to ADB semi-annual environmental monitoring reports (according to loan agreement Schedule 5, para 7), based on the quarterly environmental monitoring reports PIUs. The DDSC will support the PCU in developing these reports. The report should confirm the project’s compliance with the EMP and identify any environment related implementation issues and necessary corrective actions, and reflect these in a corrective action plan. The performance of the contractors will also be reported on with respect to environmental protection and impact mitigation. The operation and performance of the project GRM, environmental institutional strengthening and training will also be included in the quarterly environmental performance report. Table 14 summarizes the reporting requirements.

Table 14: Reporting requirements

Report Frequency Purpose From Who To Whom Contractor’s Monthly Satisfy EMP Contractor PCU, PIU Progress Report EMP Progress and Confirm EMP Monthly PIU-ESS PIU Compliance Report Compliance or Issues Confirm EMP Compliance or Issues & Quarterly Project Quarterly Monitoring of air, PIU & PCU ADB Progress Report surface water and noise Semi-annual Adherence to Environmental Semi-annually Environmental PCU & DDSC ADB Monitoring Report Covenants

F. Institutional Capacity Building and Training

17. The capacity of PCU, PIU and contractors’ staff responsible for EMP implementation and supervision will be strengthened. All parties involved in implementing and supervising the EMP must have an understanding of the goals, methods, and practices of project environmental management. The project will address the lack of capacity and expertise in environmental management through (i) institutional capacity building, and (ii) training.

18. Institutional strengthening. The lack of capacities of the EA and PCU and PIU to coordinate environmental management has resolved by appointment of Social and Environmental Safeguards and Monitoring coordinator under PCU, one Environmental Safeguards Specialist under PIU. The appointment of one national and one international environmental consultant under the DDSC will further strengthen the EA’s and PCU’s and PIU’s environmental management and supervision capacities, and ensure compliance with ADB’s Safeguard Policy Statement (SPS 2009). The obligation of the contractor to appoint a EHSO will help ensure implementation of CEMP and environmental, community and occupational safety requirements. In addition obligation of the Contractor to use a licensed laboratory for periodic monitoring of surface water, air and noise will ensure adherence to QA/QC standards. It is believed that these institutional strengthening measures, combined with clearly assigned responsibilities and roles, will allow adequate environmental management.

75 19. Training. PCU, PIU and contractors will receive training in EMP implementation, supervision, and reporting, and on the GRM. Training will be facilitated by the DDSC’s national and international ES.

Table 15: Training Programme

Training Attendees Contents Times Duration & Costs Understanding PCU, PIU, Potential environmental once- of EMP Contractors impacts and mitigation Before construction measures of the Project, starts 1 day; $2500 monitoring and reporting requirements, roles and responsibilities Supervision PCU, PIU Development and adjustment once- implementation of the EMP, roles and Before construction of CEMPs & responsibilities, monitoring, starts 1 day; $2500 Environmental supervision and reporting Will be repeated as monitoring procedures, needed Implementation Contractors Understanding of CEMP once- of CEMP implementation, roles and Before construction responsibilities, reporting starts 1 day; $2500 requirements Will be repeated as needed Grievance PCU, PIU, Roles and responsibilities, once- Redress Contractors Procedures of GRM Before construction Mechanism starts 1 day; $2500 Will be repeated as needed Total estimated cost: $10,000

G. Mechanisms for Feedback and Adjustment

20. The EMP is a living document. The need to update and adjust the EMP will be reviewed when there are design changes, changes in construction methods and program, unfavourable environmental monitoring results or inappropriate monitoring locations, and ineffective or inadequate mitigation measures. Based on environmental monitoring and reporting systems in place, PCU, PIU (with the support of the DDSC) shall assess whether further mitigation measures are required as corrective action, or improvement in environmental management practices are required. PCU will inform ADB promptly on any changes to the project and needed adjustments to the EMP. The updated EMP will be submitted to ADB for review and approval, and will be disclosed on the ADB project website