Samdrup Jongkhar Accelerated Rural Electrification Subproject

Environmental Assessment Report

Initial Environmental Examination Project Number: 42252 August 2010

BHU: Rural Renewable Energy Development Project

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

The initial environmental examination is a document of the borrower. The views expressed herein do not necessarily represent those of ADB’s Board of Directors, Management, or staff, and may be preliminary in nature.

Royal Government of Bhutan

Asian Development Bank

Technical Assistance

Project Number: 7318-BHU Preparing the Rural Renewable Energy Development Project

INITIAL ENVIRONMENTAL EXAMINATION (DRAFT)

SAMDRUP JONGKHAR ACCELERATED RURAL ELECTRIFICATION SUBPROJECT

MARCH 2010

Contents I. EXECUTIVE SUMMARY ...... 6 II. POLICY LEGAL AND ADMINISTRATIVE FRAMEWORK ...... 11 A. Policies relevant to the project...... 11 B. Environmental Clearance Procedures...... 13 III. DESCRIPTION OF THE PROJECT...... 15 A. Project description ...... 15 B. Project budget and implementation...... 18 IV. DESCRIPTION OF THE ENVIRONMENT...... 23 A. Physical Resources...... 23 B. Ecological Resources ...... 25 C. Economic Development ...... 27 D. Social and Cultural Resources...... 30 V. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES...... 32 A. Environmental effects due to project location and design...... 32 B. Environmental effects due to Construction...... 32 C. Environmental effects during Operation and Maintenance...... 42 VI. ANALYSIS OF ALTERNATIVES...... 45 VII. INFORMATION DISCLOSURE, CONSULTATION AND PARTICIPATION ...... 47 A. Project stakeholders ...... 47 B. Consultation and disclosure to date...... 47 C. Future consultation and disclosure ...... 49 VIII. GRIEVANCE REDRESS MECHANISM...... 50 IX. ENVIRONMENTAL MANAGEMENT PLAN...... 54 A. Summary of environmental impacts and mitigation measures...... 54 B. Environmental Monitoring Plan...... 54 C. Institutional Arrangement...... 61 D. Environmental Management and Monitoring Costs ...... 61 X. CONCLUSION AND RECOMMENDATION...... 63 A. Project Findings ...... 63

B. Recommendations...... 64 C. Conclusion...... 65 XI. REFERENCES ...... 66 ANNEXURES ...... 68 Annex 1: List of species found in project area...... 68 Annex 2: Summary of Public Consultation...... 71 Annex 3: Photos from project sites...... 76 Annex 4: Copy of MOU between BPC and Affected Persons...... 79

Abbreviations

ADB: Asian Development Bank BAP: Biodiversity Action Plan BHU: Basic Health Unit BPC: Bhutan Power Corporation CS: Community School DFO: Divisional Forest Officer DoF: Department of Forest DoE. Department of Energy DYT: Dzongkhag Yargay Tshogchhung EA: Environmental Assessment EA: Executing agency EC: Environmental Clearance EIA: Environmental Impact Assessment FYP: Five Year Plan EMP: Environmental Monitoring Program FNCA: Forest and Nature Conservation Act HH: Household HSS: Higher Secondary School IA: Implementing Agency H&S: Health and Safety JSWNP: Jigme Singye Wangchuck National Park LSS: Lower Secondary School LV: Low Voltage MoA: Ministry of Agriculture MSS: Middle Secondary School MTI: Ministry of Trade and Industry MV: Medium Voltage NCD: Nature Conservation Division NEC: National Environment Commission NES: National Environment Strategy NGO: Non-Government Organization NWFP Non-Wood Forest Product O & M: Operation and Maintenance ORC: Out Reach Clinic PA: Protected Area PM: Project Manager/Park Manager PPE: Personal protective equipment PPTA: Project Preparatory Technical Assistance PS: Primary School RE: Rural Electrification RGOB: Royal Government of Bhutan RMNP: Royal Manas National Park RNR: Renewable Natural Resources RoW: Right of Way RSPN: Royal Society for the Protection of Nature TOR: Terms of Reference TNP: Thrumshingla National Park

TABLES Table 1: Summary of distribution lines Table 2: Improvements in rural electrification infrastructure proposed Table 3: Present land use in the RoW along the MV routes Table 4: Length of MV line passing through private land Table 5: Comparison of alternatives Table 6: Details of public consultation conducted Table 7: Summary of public consultation Table 8: Length of distribution lines and affected persons/beneficiaries Table 9: Total length of feeder through government and private land Table 10: Environmental Impacts and Mitigation Table 11: Environmental Management Plan Table 12: Cost of implementing EMP and monitoring

MAPS Map 1: Proposed Distribution lines under this sub-project Map 2: Map of Bhutan with Samdrup Jongkhar dzongkhag highlighted Map 3: Protected Areas in Bhutan

Glossary of Bhutanese Terms

Chathrim: Act, statute Chiwog: A unit under a Gewog Chuzhing: Irrigated/Wetland Dungkhag: Sub-district Dungpa: Sub-district administrator Dzong: The administrative center as well as religious centre in the district Dzongdag: District administrator Gewog: Block/ County Gup: Head of a Gewog Kamzhing: Dryland Lhakhang: Temple Rabdeys: Monastic bodies in Dzongs other than Punakha and Thimphu Sokshing: Area where dried leaf litter is collected to make manure Tsamdro: Pasture land Tseri: Shifting cultivation, Slash and burn cultivation Tshechu: Religious festival Tshogpa: Elected representative of a Chiwog

I. EXECUTIVE SUMMARY

1. Bestowed with abundant water supply from fast flowing rivers over mountainous terrain, Bhutan has long recognized the potential to generate hydropower generation and the possibility of enhancing its GDP from the energy sector. Since 2007, hydropower generation has quadrupled to 1,489 MW and is further expected to increase to 1,602 MW by the end of the Tenth Plan and possibly reach 10,000 MW by 2020 (GNHC, 2009). At the same time, the guiding philosophy of Gross National Happiness dictates that development planning essentially focuses on fulfilling the fundamental objectives of achieving broad based sustainable growth and improving the quality of life while ensuring the conservation of the natural environment.

2. The overall objective of the Energy Sector for the Tenth Plan is the sustainable development and efficient use of energy resources for socio-economic development. While hydro-power development will provide environmentally clean, safe and reliable energy as well as contribute to GDP, providing electricity aims to improve the quality of life and living standard of rural communities, while contributing to self reliance.

3. In its “Vision 2020, Electricity for All” the Royal Government of Bhutan’s (RGOB) pledged to provide 100% electrification by 2020. Accordingly the Rural Electrification Master Plan targeted 85.6% electrification under the 10th Five-Year Plan (FYP: 2008-2013). Since then, the new democratically elected government has placed even higher priority on the goal of achieving its vision of “Electricity for All” and has brought forward the target completion to 2013.

4. To achieve the above target, the Accelerated Rural Electrification Project (ARE) was initiated by the RGOB to ensure that all remaining households are provided with either on-grid or off-grid/solar electrification. When this project is completed, the on-grid electrification is expected to cover 88% of the total number of Households in the country while the remaining 12% will be provided electricity through off grid means.

5. Under the ARE project a total of 8957 households in 478 villages from nineteen Dzongkhags (Thimphu, Paro, Punakha, Wangdue, Ha, Chukha, Samtse, Dagana, Gasa, Trongsa, Zhemgang, Tsirang, Pema Gatshel, Mongar, Lhuentse, Trashi Yangtse, Trashigang, Samdrup Jongkhar and Sarpang) that can be connected through on-grid electrification have been identified. From these the RGOB has requested further ADB assistance in providing power to 5172 rural households in 6 dzongkhags. ADB has helped Bhutan expand rural electrification (RE) via four loans since 1995, covering over 20,000 households (HH).

6. Bhutanese law and ADB policy require that the environmental impacts of all development projects are identified and assessed as part of the planning and design process, and that action is taken to reduce those impacts to acceptable levels. This is done through the environmental assessment process, which has become an integral part of lending operations and project development and implementation worldwide. The Implementing Agency BPC has produced Environmental Clearance Applications required by national legislation for the sub- project.

7. IEES for all each sub-project has been prepared according to ADB Safeguard Policy (2009) and the Environmental Assessment Guidelines (2003) as well as the RGOB Environmental Assessment Act (2000).

8. This document is the IEE for Samdrup Jongkhar RE subproject. It is one of six IEE documents describing the environmental impacts and mitigation of all subprojects proposed by the Project Preparatory Technical Assistance conducted in 2009-2010. These documents were prepared from January 2010 - April 2010 by one Domestic Environmental Specialist via input of six months. These Environmental Impact applications have been endorsed and approved by the EA.

Sub-Project description.

9. Through the Rural Electrification Project, the BPC aims to electrify 1004 rural households and 58 institutions including 10 schools, 6 Basic Health Unit, 1 Rice Mills, 2 RNR Centres, 3 Gewog offices and 36 religious facilities in Lauri, Serthi, Langchenphu, Martshala, and Phuntshothang gewogs. There are 10 33kV Medium Voltage distribution line that will provide electricity to 64 villages that presently do not have access to power supply This will assist the RGOB towards their target of providing electricity to all citizens by 2020; and it should also generate significant improvements in environmental and social conditions in the rural areas.

10. Each feeder has three main elements: (i) Medium Voltage lines to convey electricity from an existing distribution line to individual villages; (ii) transformers in or near villages to reduce the voltage from 11kV and 33 KV to the 230 or 415 V required for domestic supply; and (iii) Low Voltage lines supplying electricity to individual consumers.

Sub-Project Findings.

11. ADB Environmental Assessment Guidelines require that an IEE should evaluate impacts due to the location, design, construction and operation of the project. Construction and operation are the two activities in which the project interacts physically with the environment, so these are the two activities during which the environmental impacts occur. In assessing the effects of these processes therefore, all potential impacts of the project are identified, and mitigation is devised for any negative impacts.

12. This is a rural electrification sub-project that is expected to generate significant improvements in environmental and social conditions in the rural areas. These include:  Improvements in the quality of life from the availability of electricity;  Reductions in production of greenhouse gases from burning of kerosene and wood;  Long-term reductions in environmental damage from the logging of trees for fuel;  Improvements in health from reduced exposure to smoke and other pollutants;  Reduction in time spent collecting and transporting firewood;  Opportunities for alternative livelihoods, generating socio-economic benefits;  Contributing to the long term goals of Conservation of the RGOB.

13. Minimal negative impacts are expected from the project on Climate, Geology and seismology, Industries and Tourism. This is because the short-term production of dust is the only effect on atmosphere, excavation will not be large enough to Geology, there are no major industries in any areas to be affected by the project and there are very few tourists that visit these villages because of their remote locations.

14. As is the case with most RE schemes, the most significant impacts are the result of the design of the project, as they would not occur if off-grid methods of electrification, by the use of

15. The one impact that is clearly a result of both design and location is the ecological impact of clearing the RoW through forested areas for the MV lines, because the target villages are located inside forested areas. These trees and other vegetation would not need to be removed if the MV lines could have been routed through un-forested areas to these villages (which was not possible), or if the MV lines were run underground (which was not considered because of the excessive cost). It should be noted however that the environmental assessment did not consider this to be a major source of impact, because the provision of electricity to rural communities conserves more trees in the long term than are removed from the RoW, because of the reductions in the felling of trees for firewood.

16. Impacts from Construction are those expected once the project implementation begins. These impacts have been segregated under Physical, Ecological, Development and Social and Cultural impacts. Impact on forest resources are considered Moderate because although a 10m or 12m RoW (depending on the voltage) will be cleared along 67% of the distribution line (19.5km in broadleaf and conifer forest). This negative impact, albeit a permanent one is not expected to be significant because a) all feeders are aligned close to farm roads and foot trails which are the main access routes to the villages and used daily by local people; and b) the long term effects of electrification of villages is expected to outweigh the short terms impacts of felling along the right of way of the distribution line. Also, no endangered wildlife is reported to occur in close proximity to the route alignment. This is probably because the forest where the MV lines are located has been disturbed and degraded to some extent by local residents.

17. All other physical impacts such as those on air quality, noise, soil stability and erosion, natural drainage and aesthetics are assessed as Not Significant, mainly because these impacts are limited temporarily to the construction period and spatially to the immediate surrounding along the distribution lines and excavation sites at pole locations. Another reason is the remote location of the target villages, surrounded by forest to absorb any dust or noise as well as buffer aesthetic impacts.

18. In terms of social impacts, the project will bring about positive socio-economic impacts by providing electricity for lighting, cooking and heating for individual households as well as government and religious institutions. A number of secondary impacts are expected to occur as a result of the project. These include positive impacts on the health and lifestyle of local people through the use of clean technology, improved communication, networking, security, and increase in opportunities for seeking other livelihood options. Residents can save time and money which would have been spent processing for fuel wood permits and kerosene coupons while students and religious practitioners will have more time for study.

19. Impact on agriculture and private land, facilities and social and cultural resources are also considered not significant because the quantity of private and agricultural land that will be affected is very small and dispersed and the harvested crop is mostly used for self consumption. There are 36 temples that also benefit from the project and impacts on these and other facilities can be mitigated through prior planning, scheduling of work, consultation with local communities and by giving due consideration to local priorities. Visual impacts are generally considered significant where they affect large numbers of people, and that will not be the case here because of the remote nature of these areas.

20. Negative social impacts from the project may result if external workers are brought in from outside the gewog as this can sometimes cause social problems and there is also the risk of diseases like HIV/AIDs, Swine flu from socializing with contract workers as they may not have been properly screened for diseases. This impact is not expected to be significant because in any village work will probably be conducted by one or two small teams of 5-10 workers each, so individual locations will not experience a large influx of foreign workers. This can be mitigated through proper training and precautions, setting of rules and regulations for workers by contractors.

21. The Impacts from Operation and Maintenance are mainly those that occur from keeping the RoW clear of vegetation to reduce the risk of short-circuits and occasional repairs to address power outages and other problems during maintenance. Impacts on physical resources, ecological resources and economic development are not significant because RoW clearance is not as intensive and will not cause as much destruction and disturbance as during the construction Phase. Also, impacts will only occur during maintenance works and will be limited spatially to the same area as the construction Phase. This will not involve any major changes to the newly constructed project.

22. The main hazard to people from the operation and maintenance of the completed RE system is the risk of electrocution. This is a danger to rural consumers unaware of the risks of electrocution and to BPC workers conducting repair and maintenance work. BPC has already gained ample experience in implementing past Rural Electrification projects in all Dzongkhags, and staff are well aware of the risks of such projects. Also, there are established procedures for repair and maintenance of distribution lines which is being practiced very efficiently elsewhere.

23. Mitigation measures during the Construction Phase include those to reduce the impacts of forest cover, endangering vulnerable species, or reducing physical impacts such as air, noise, drainage and land stability. The Contractor should be required to provide training to raise the awareness of all site workers and staff, prohibit any hunting, fishing or similar activities by site personnel, ensure that labour camps are located in areas where no forest clearance is required and to ensure that labour camps are provided with adequate heating and lighting. The Contractor should also process for permits for firewood from the Forestry Office so that workers do not need to illegally collect firewood

24. Efforts should still be made to reduce the level of social disruption where possible, and to achieve this, the Implementing Agency should consult all affected communities in advance to inform them of the purpose, nature, duration, extent and timing of all work in and around their village and plan the work to avoid sensitive times.

25. During Operation and Maintenance, mitigation of impacts are easier than those during construction Phase as this involves following the procedures already laid out in the Operation and Maintenance (O&M) manuals and well as the Health and Safety (H&S) Manuals. BPC should also conduct regular training for all BPC staff to improve operation and maintenance works, improve supervision of field workers during all phases as well as conduct community education programs to raise the awareness of all target households before and after they are connected to the grid regarding the dangers of electricity, and the precautionary manner in which house systems should be used.

II. POLICY LEGAL AND ADMINISTRATIVE FRAMEWORK

A. Policies relevant to the project

26. There are a number of laws and regulations that include elements that may apply to RE subprojects, depending upon their specific nature and location. These include the following:

a. Electrification Act 2001

27. Rural Electrification is strongly promoted in the Electricity Act, 2001. Part 7, Section 61.1 states that “The Minister Shall undertake to promote, support and provide rural electrification programmes through public and private sector participation in order to 1. achieve equitable regional distribution access to electricity; 2. maximize the economic, social and environmental benefits of rural electrification subsidies; 3. promote extension of the grid and development of off-grid electrification; 4. promote renewable energy.”

b. Forest and Nature Conservation Act (FNCA) 1995:

28. The Forest Act (1969) was the first environmental legislation in Bhutan and brought all forest resources under government custody to regulate utilization. This was repealed with the enactment of the FNCA in 1995, which allows community stewardship of forests, and aims to provide protection and sustainable use of forests, wildlife, and related natural resources. Schedule 1 lists those wild animals and plants that are given full protection under the Act and many of these may be found in areas through which rural electrification lines may pass. The FNCA establishes that all forests in Bhutan are Government Reserved Forests (GRF), and prohibits any development activity in these areas except with a permit.

c. Forest and Nature Conservation Rules

29. In Bhutan “Forest” means any land and water body, whether or not under vegetative cover, in which no person has acquired a permanent and transferable right of use and occupancy, whether such land is located inside or outside the forest boundary pillars, and includes land registered in a person’s name as Tsamdrog (grazing land) or Sokshing (Woodlot for collection of leaf litter)i . The Country currently has 72.5% forest cover. In 1974, a new Forest policy was promulgated wherein it was declared that at least 60 percent of the country must remain under forest cover for all times. This first declaration was followed in the next few decades by a series of positive initiatives by the RGOB to bring forest areas under protected area status.

30. Under powers established by the FNCA, the Ministry of Agriculture promulgated the FNCR in 2000, which was revised in 2006. Amongst other things the FNCR allows for:  Allotment of land and land rights in GRF;  Prohibitions, restrictions and concessions in GRF;  Transport and trade of forest produce;  Declaration and administration of protected areas;  Protection of wildlife and use of certain wild species;

 Prevention of forest fires, land clearance, and activities potentially impacting soil, water and wildlife resources;  Enforcing penalties for offences related to these and other aspects of the FNCR.

31. As RE subprojects are likely to involve some of these activities, formal “No Objection” from the Department of Forests (DoF) will be required.

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

33. The Forest and Nature Conservation Act of 1995 defines "Protected Areas" as any national park, conservation area, wildlife sanctuary, wildlife reserve, nature reserve, strict nature reserve, research forest or critical watershed. The Act gives the Government the power to declare any land in the country to be a protected as defined above for the preservation of areas of natural beauty, protection of biological diversity, management of wildlife, conservation of soil and water and related purposes. If any private registered land is taken under this section, compensation or alternative land rights shall be provided as per the Land Act.

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

35. Since more than 79% of the population live in the rural areas and forests cover 72.5% of the land area, it is impossible to separate communities from protected areas. In Bhutan, people were residing inside the PAs before these areas were declared ‘protected’. Although extra effort was made to exclude settlements while rationalizing the location of the national parks, invariably some settlements had to be included in the protected areas, primarily to accommodate the ecosystem representativeness and adjustment of physio-Gewographical boundaries. Recognizing the fact that it would be a traumatic process to remove the residents out of the national parks by force or legislative means, a more benign policy of working with the local people has been adopted through balancing conservation goals while also providing for the socio-economic development of rural residents.

d. Land Act 1979 (revised 2007)

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

37. Under this Act, there are provisions for requisition of land by the government, if it is required for the benefit of the country. In such cases, the affected person will be compensated with substitute land from the same Dzongkhag or given cash compensation depending on the land classification as per the prevailing land compensation rate determined by the Act. If a house is acquired, compensation is paid on the basis of an evaluation carried out by a qualified engineer appointed by the competent authority.

e. RGOB Decentralization Policy 2002

38. The Dzongkhag and Gewog Yargay Tshogdue Acts were implemented in 2002 to support the Government’s decentralization policy and empower locally elected community bodies (DYTs and GYTs) with the authority and responsibility to plan and implement development programmes and activities, including those related to environmental management. Through this legislation the DYT is able to:  Make recommendations on activities with major environmental impacts;  Designate and protect sites and monuments of cultural or historical interest;  Designate and protect areas of special scenic beauty or biodiversity, such as Dzongkhag parks and sanctuaries;  Establish and enforce regulations to control noise pollution;  Prohibit construction of structures within 50 ft of highways;

The GYT is able to establish and enforce regulations to:

 Control and prevent pollution of air, soil and water;  Ensure safe disposal of waste and adequate standards of sanitation;  Conserve and protect water resources, including rivers, streams, springs and lakes; and  The GYT also has custody of communal lands and community forests and can prevent encroachment onto land and forest.

39. Thus development projects such as Rural electrification can be subject to regulation promulgated by the local authorities, especially during project implementation.

B. Environmental Clearance Procedures a. Environmental Classification

40. The environmental classification of projects is decided by NEC on receipt of the Environmental Clearance (EC) application submitted by the proponent. There are three possible outcomes: i) NEC may grant Environmental Clearance on the basis of the EC application if the application contains sufficient information and it is clear that the proposed development will not have significant negative environmental impacts; ii) NEC may deny Environmental Clearance on the basis of the EC application if the application contains insufficient information and it is clear that the proposed

iii) If the EC application contains insufficient information on the likely nature and extent of the environmental impacts of the project or the manner in which they will be mitigated, NEC will determine that an EIA is required.

b. Preparation of EC Application and Environmental Impact Assessment

41. The requirements of the EC application are set down in sectoral guidelines that were revised with ADB assistance in 2006; and for RE projects the relevant document is entitled “Application for Environmental Clearance: Guidelines for Transmission and Distribution Lines”.

42. The information required for environmental clearance is very specific, and in all cases includes information on the applicant, the project, funding agency, the affected environment, potential impacts, mitigation, monitoring and public consultation. In the case of power transmission and distribution lines information on impacts includes details of affected: areas, types, uses and tenure of land; houses/infrastructure; protected areas; wildlife; cultural and heritage sites; etc. BPC surveyors collect most of the data during route surveys when they conduct land use and ownership surveys along proposed transmission/distribution line routes, and by consulting local communities and the Department of Forest.

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

44. The Environmental Assessment Act requires the proponent to prepare Terms of Reference (ToR) for the proposed EIA, which is submitted to NEC for their review. NEC will either approve the proposed ToR, or suggest amendments, which the proponent is required to incorporate before the revised scope is approved. The proponent is then required to conduct the EIA and submit the report as described in the ToR.

c. Approval process

45. A key element of the national Environmental Clearance application process is the provision of signed No Objection Certificates (NOC) from stakeholders that are specified in the guidelines, including all affected households, Department of Forest, and other relevant Government Agencies (Dept of Culture, Nature Conservation Division, etc). The National Environment Commission does not consider an EC application that does not contain the necessary NOC and Forestry Clearance. The latter for example is not granted by DoF until a forestry official has surveyed the whole length of any proposed route and has physically marked those trees that may be felled to create the RoW. The NEC in turn requires that all proposed routes are field examinations are conducted by the District Environment Officer and recommended by the District Environmental Committee. This process ensures that the least environmentally disruptive routes have been selected. This elaborate process of revisiting the proposed sites by different agencies ensures that all possible options have been explored, and the most suitable one adopted.

III. DESCRIPTION OF THE PROJECT

A. Project description

46. The sub-project is located in Samdrup Jongkhar Dzongkhag, in eastern Bhutan. Through this project, electricity will be provided to 64 villages in Lauri, Serthi, Langchenphu, Martshala, and Phuntshothang gewogs. The project activities comprise of three basic elements: (i) Medium Voltage lines to convey electricity from an existing distribution line to individual village, (ii) Pole mounted transformers in or near villages to reduce the voltage from 33 KV to the 230 or 415 V required for domestic supply, and (iii) Service lines supplying electricity to individual consumers.

47. Under this sub-project, there are ten 33 kV MV lines that will run for a total of 147.9km via an estimated 2960 poles. These will connect to 64 transformers located in or near villages to be electrified, and from these a 186km LV network of 230 or 415 V will supply electricity to 1004 households and 58 facilities.

Table 1: Summary of distribution lines (length in metres)

Length Feeder of MV Length Voltage total No. Gewogs No. line of LV line Transformers KV HHs facilities consumers 1 Lauri, Serthi, ARE1K1 71653.8 139099.0 56 33 56 925 57 982

2 langchenphu LV Extension 3610.0 0 6 1 6 3 langchenphu ARE1K2 3552.9 2933.0 1 33 1 7 7 4 Martshala ARE1K3 1714.1 1058.0 1 33 1 4 4 5 Phuntshothang ARE1K4 1324.5 11108.0 1 33 1 16 16 6 Phuntshothang ARE1K5 1750.2 13121.0 1 33 1 12 12 7 Phuntshothang ARE1K6 506.2 3553.0 1 33 1 10 10 8 Phuntshothang ARE1K7 1660.1 4504.0 1 33 1 11 1 12 9 Phuntshothang ARE1K8 216.8 6722.0 1 33 1 13 13 Phuntshothang 65500 0 0 0 0 0 0 Total 147878.6 185708.0 63 64 1004 58 1062

Feeder No. ARE1K1 48. This feeder is located in Serthi and Lauri gewog and will extend to 56 villages from the main 33kV line proposed from Kangpara to Kashitheng under the same project. The length of the MV line is 71.7km and the LV line is 81.9 km. There are 32 sub-feeders, all 33kV. Feeder No. ARE1K2

49. This 33kV feeder is located in Langchenphu Gewog and covers 1 village, Bazhrang. The total length of the feeder is 3.5km and the LV line is 1.6km long. This line will require 1 transformer and there are 7 beneficiaries. This feeder will be tapped from line tapped at existing Golanti substation

LV line from existing 63KVA in Lachenphu Gewog

50. This LV line to Lower Golanti is a 1.8km and will be tapped from the existing 64KVA line. In total, there are 24 beneficiaries.

Feeder No. ARE1K3

51. This 33kV feeder is located in Martshala Gewog and covers 1 village, Saytsalo. The total length of the feeder is 1.7km and the LV line is 529m long. This line will require 1 transformer and there are 4 beneficiaries. This feeder will be tapped at existing substation at Thrizor.

Feeder ARE1K4

52. This 33kV feeder is located in Phuntshothang gewog and covers 1 village, Jakartala. The total length of the feeder is 1.3km and the LV line is 6.6km long. This line will require 1 transformer and there are 16 beneficiaries. This feeder will be tapped at Taktri substation (ADB funded project under RE-IV).

Feeder No. ARE1K5

53. This 33kV feeder is located in Phuntshothang gewog and covers 1 village, Kubendey. The total length of the feeder is 1.75km and the LV line is 8km long. This line will require 1 transformer and there are 12 beneficiaries. This feeder will be tapped from existing main line at Kharpandi.

Feeder No. ARE1K6

54. This 33kV feeder is located in Phuntshothang gewog and covers 1 village, Merudaza. The total length of the feeder is 506m and the LV line is 2km long. This line will require 1 transformer and there are 10 beneficiaries. This feeder will be tapped from existing main line at Bangtar.

Feeder No. ARE1K7

55. This 33kV feeder is located in Phuntshothang Gewog and covers 1 village, Shangshing Zor. The total length of the feeder is 1.6km and the LV line is 2.8km long. This line will require 1 transformer and there are 12 beneficiaries. This feeder will be tapped from the existing main line to Bangtar.

Feeder No. ARE1K8

56. This 33kV feeder is located in Phuntshothang gewog and covers 1 village, Sukuni. The total length of the feeder is 217m and the LV line is 24.3km long. This line will require 1 transformer and there are 13 beneficiaries. This feeder will be tapped from the existing main line to Bangtar.

Feeder No. ARE1K9

57. This 33kV trunk line will begin from Pemathang gewog and will terminate in Lauri gewog. The total length of the feeder is 65.5km. This distribution line will be tapped from the Shillingay sub/station proposed under ADB Re 4. If this line is found to be techno-economically feasible then it will provide electricity to 925 houses and 52 facilities under serthi and lauri gewogs.

58. The MV lines will carry either 11 KV or 33 KV via three strands of aluminium conductors, mounted on poles located at intervals of around 50-70 m, depending on topography and terrain. Poles are of cast iron, with an iron cross-piece at the top on which insulators are mounted to hold the conductors. Section Poles have two legs and are located every 200-250 m, and between these are located a series of single-strut Interval Poles, to support the conductors and maintain them the requisite 5.8 m above ground level. Poles are 10 m in length and are held in the ground via earth and concrete foundations, 1.6-1.9 m in depth.

59. Conductors are either bare or covered. Bare conductors are of the Aluminium Conductor Steel Reinforced (ACSR) type, which consist of several strands of aluminium wire wound around a central steel core. Covered conductors are of the Aerial Bundle Cable (ABC) type, in which insulated strands of aluminium are wound together and covered with polyethylene insulation. Covered conductors are used for LV lines in inhabited areas, but may also be used for MV lines in locations where it is necessary to reduce the width of the Right of Way (RoW) cleared on either side of the line. In forested areas all vegetation is cleared from a specified width around the transmission or distribution line to prevent interruptions in supply from falling trees, or branches touching the line. For bare conductors the RoW is 12 m and for covered conductors it is 4 m (because the insulation reduces the risk of outage).

60. MV lines cross mainly forested areas, but as noted above, routes have been selected to run along existing farm roads, tracks and pathways where possible, because in these areas there has already been some clearance of trees and other vegetation, so this reduces the amount of new felling required. No clearance is required where routes cross public or agricultural land, and at farm sites, poles will be located on field boundaries where possible, to reduce the loss of productive land.

61. Transformers are ready-made components imported from overseas, which are located with associated components (junction box, fuses, lightning arrestors) on double-strut poles inside or outside the villages to be electrified. Transformers have an outer metal casing and measure around 1 x 1 x 0.25 m for the LV lines, and the junction box is slightly larger.

62. A local network of single LV covered conductors (230 or 415 V) will run from each transformer to the supplied village or villages, and branches will run to individual consumers (households, facilities or industries), terminating at a service meter on an outside wall. Conductors will be held on single-strut poles, located alongside the unpaved roadways and at other unobtrusive locations, at intervals of approximately 50 m.

B. Project budget and implementation

63. Detailed design of the project began in 2009 and should be completed by end of 2010, after which construction will be initiated. All the work should be completed by the end of 2013.

The project cost is presently estimated at Nu. 16.8 million. This is an initial estimate and may change depending on change in prices in material cost as well as changes in regional and local transportation cost. Construction of this subproject should take approximately one year

Map 1.1: Proposed Distribution lines under this sub-project

Map 1.2: Proposed Distribution lines under this sub-project

Table 2: Improvements in rural electrification infrastructure proposed

Infrastr Functi Description Location ucture on Medium Convey Six strands of 11 kV aluminium conductors (power None of the MV lines lie in protected Voltage electricity cables), strung between iron poles located every 50-70 areas. Howve, they do run through forest, (MV) Line from an m. Poles are 10 m long and project 8 m above the farmland and public land, and routes are existing ground, and are of cast iron with a cross-piece at the aligned along existing farm roads and distributio top containing insulators to which conductors are paths where possible. On farm land, poles n line to attached. Section Poles have two legs and are located will be located at field boundaries where a every 200-250 m, and between these are single-strut possible. transform Interval Poles. Bare conductors contain aluminium Feeder ARE1K1: Lauri, Serthi gewog er. strands wound around a steel core; and covered Feeder ARE1K2: Langchenphu gewog conductors consist of insulated strands of aluminium, Feeder ARE1K3: Martshala gewog wound together inside polyethylene insulation. Feeder ARE1K4: Phuntshothang gewog Feeder ARE1K1: MV length = 71.6km, 32 sub-feeders; 1432 poles Feeder ARE1K5: Phuntshothang gewog Feeder ARE1K2: MV length =3.5km, 70poles Feeder ARE1K6: Phuntshothang gewog Feeder ARE1K3: MV length=1.7k m, 34poles Feeder ARE1K7: Phuntshothang gewog Feeder ARE1K4: MV length = 1.3km, 26 poles Feeder ARE1K8: Phuntshothang gewog Feeder ARE1K5: MV length = 1.75km, 35poles Feeder ARE1K9: Phuntshothang gewog Feeder ARE1K6: MV length = 0.5km, 10 poles Feeder ARE1K7: MV length = 1.66km, 33 poles Feeder ARE1K8: MV length = 0.22km, 4 poles Feeder ARE1K9: MV length = 65.5km, 1310 poles

Transfor Reduce Pre-manufactured electrical component in metal Generally one transformer per electrified mer voltage casing, approximately 1 x 1 x 0.5 m. Numbers per village, on a pole inside or outside the from 33 gewog: village. Villages as follows: kV in the Feeder ARE1K1: 56 transformers Feeder ARE1k1: 56 villages MV line Feeder ARE1K2: 1 transformer Feeder ARE1K2: Bazhrang to 230 or Feeder ARE1K3: 1 transformer Feeder ARE1K3: Saytsalo 415 V in the LV Feeder ARE1K4: 1 transformer Feeder ARE1K4: Jakarta Line. Feeder ARE1K5: 1 transformer Feeder ARE1K5: Kubendey Feeder ARE1K6: 1 transformer Feeder ARE1K6: Merudaza Feeder ARE1K7: 1 transformer Feeder ARE1K7: Shangshing Zor Feeder ARE1K8: 1 transformer Feeder ARE1K8: Sukuni Feeder ARE1K9: 0 transformer Feeder ARE1K9: none Lv extension: 1 transformer LV line extension: Lower Golanti Low Convey Generally single strand of LV covered conductors (230 Total number of connections: 170 Voltage electricity V for single phase, 415 V for three phase), mounted Feeder ARE1K1: 925HH. 10S,35L,6B/O, (LV) Line from a on single poles at 50 m intervals. Each line terminates 2R, 1RM, 3G transform at a service meter on an external wall of the consumer Feeder ARE1K2: 7HH, er to (household, facility, industry). Length of LV line: Feeder ARE1K3: 4 each Feeder ARE1K1: 139 km Feeder ARE1K4: 16HH individual Feeder ARE1K2: 2.9 km consume Feeder ARE1K5: 12HH Feeder ARE1K3: 1.1km r Feeder ARE1K6:10HH Feeder ARE1K4: 11.1km

Infrastr Functi Description Location ucture on Feeder ARE1K5: 13.1Km Feeder ARE1K7:11,1L Feeder ARE1K6: 3.5km Feeder ARE1K8:13HH Feeder ARE1K7: 4.5km Feeder ARE1K9:0 Feeder ARE1K8: 6.7km Lv Line extension- 6HH Feeder ARE1K9: 0 km LV line extension: 3.6km HH- households, S- School, L-Lhakhang, B-Basic health unit, R-Rice mill, G-Gewog office

IV. DESCRIPTION OF THE ENVIRONMENT

A. Physical Resources

1. Location

64. Samdrup Jongkhar Dzongkhag lies in the South Eastern part of Bhutan bordering the Indian State of Assam and Raunchily Pradesh. The Dzongkhag has a total area of approximately 2,308 km2. Samdrup Jongkhar Dzongkhag comprises of two Drungkhags (Bhangtar and Diafam) and nine gewogs: Orong, Gomdar, Martshala, Bakuli, Dechhenling, Dalim and Samrang, Lauri, Serthi and Hastinapur. There are 8,363 households, of which 3,088 are electrified and 5,275 are non-electrified. The population is 39,961 with rural population of 28,997 and urban population of 10,9641. The administrative centre is Samdrup Jongkhar town which is located in one of the most remote areas from the capital, located approximately 725 km southeast from Thimphu.

Map 2: Map of Bhutan with Samdrup Jongkhar dzongkhag highlighted

2. Topography, geology and soils

1 Office of the Census Commissioner, 2006

65. The major portions of the Dzongkhag fall within the subtropical belt with elevations ranging from 200-4,000 metres above sea level. About 25.6% of land is located 0-600 m altitude, 27.6% is in 600-1200 m altitude, 23.1% between 1200-1800 m altitudes, 14.4% is in 1800-2400 m altitude, and rest are above 2400 m (MoA, 1997). The landform of Samdrup Jongkhar has alternating E-W and N-W valleys with steep ridges. The southern portions towards the border however are more flat with wide valleys and river beds.

66. Samdrup Jongkhar falls in the South Eastern zone where the bedrock comprises mainly of Lesser Himalayan sedimentaries and metasedimentaries. The Baxa group mainly comprising of dolomite and limestone outcrops here in various formations such as the Manas formation. Within the Baxa group there are slivers of Shumar formation and granite gneiss, the formation, and the Setikhola and Siwalik group. The Baxa group consists of pink-white buff, quartzite, meta-siltstone, pyritous phyllite/phyllitic slate, dolomite, limestone and near basic intrusives (Bhargava, 1995). The Surface drift is mainly deeply weathered rock and colluvium, with much landslide and debris and limited alluvium (Cencho et. al, 1992).

67. The majority of settlements are mostly located in the foothills where the soil is quite fertile but limited. The soil type varies from sandy to clayey loam which is suitable for agricultural production. Most of the gewogs are prone to landslides and soil erosions due to loose soil.

3. Climate

68. Samdrup Jongkhar dzongkhag lies in the subtropical belt and experiences hot summers with average temperatures reaching up to 35 °C during the months of June, July and August and dropping cooler temperatures of 16 °C in winters. Dry season is from October to March and most of the precipitation is observed in rainy season, from April to September. The heaviest rainfall occurs from June to September in the southern gewogs falling within the Chirapunji Mountain Range receiving as much rain fall as 1500 mm in July. Annual average humidity is 77%. The average total rainfall received from 2004 to 2006 was as much as 4000 mm.

4. Air Quality

69. Air pollution in Bhutan is generated as a recent phenomenon and it can be attributed to rapid urbanization. Diesel vehicles with poor quality of fuel are the major sources for the urban air pollution. There is no information available on the ambient air quality of Samdrup Jongkhar because so far ambient air quality (PM, NO2 and SO2) monitoring has only been conducted in Thimphu and Phuentsholing periodically. The average respirable particulate matter (PM10) concentration of 24.5 µg/m3 in Thimphu (NEC, pers comm.) is lower than internationally set 32 PM10 concentration levels of 40 µg/m . Since Samdrup Jongkhar has a much lower population, construction and industrial activity and vehicles, the air quality in Samdrup Jongkhar is expected to be much better than that of Thimphu.

2 Air Quality Guidelines for Europe, 2000 World Health Organization Regional Publications, European Series, No. 91

70. In addition there are health impacts from the use of fire wood and kerosene lamp that causes eye and respiration problems. Use of electricity will contribute to the reduction of in- house air pollution from Bhukharis and fuel wood use.

5. Surface Water

71. There are four major rivers in Samdrup Jongkhar. The Jomo Chu from Trashigang flows through the eastern part of Samdrup Jongkhar into India, the Nonori flows through Serthig and Samrang gewog, the Deu chu through Orong gewog and the Nyera Ama chu through Gomdar, Wangphu, Martshala and Bakuli gewogs. Most arable land in Bakuli, Dalim, Samrang, Hastinapur, Gomdar and Orong gewogs were damaged by floods during the monsoon in 2000 (DoP, 2003).

6. Groundwater

72. There are no data available on the groundwater. Ground water resources are also abundant with springs emerging from basement rocks, old landslides and fluvial deposits. Groundwater in landslide and alluvial deposits has been estimated at an exploitable rate of 3 litres/second/km2 (ADB, 2004). Currently water quality monitoring is only conducted in the four major river systems of Bhutan only. Generally the state of Bhutan’s water resources is still good but with expanding settlement along rivers there are localised pollution problems due to unsanitary conditions and waste along the banks of streams and rivers both in urban areas and in rural locations.

B. Ecological Resources

1. Protected Areas 73. Bhutan is one of the top 10% of countries with the highest species density in the world (number of species per unit area), and has the highest proportion of forest cover and protected areas in Asia3. To date around 5,500 species of vascular plants have been recorded, over 770 species of birds and 165 species of mammal, with many being endemic to Bhutan. This probably represents a fraction of the species that are present, as Bhutan remains one of the least explored countries in the world. The rich biodiversity is due to the remote nature, Gewographical relief and climatic heterogeneity of the country, and its location between temperate Eurasia in the north and the tropical Indian subcontinent in the south.

74. The protected area system was initially created in the 1960’s. Since these were mostly confined to the northern and southern regions of the country, the PA system was revised to encompass all the different ecosystems and habitats in the country, resulting in 9 protected areas covering 26.5% of the country’s land area. In 1999, biological corridors were identified to link the various protected areas adding another 9% to the PA system. In 2008, a new park was created that further increased it to 48%. Now, Bhutan has one of the largest areas under protected area status.

75. There are five National Parks in Bhutan, four Wildlife Sanctuaries and one Strict Nature Reserve, shown in Map 3. The protected area system was initially created in the 1960’s. However, these were mostly confined to the northern and southern regions of the country, so the PA system was revised to encompass all the different ecosystems and habitats in the

3 MOA (2002): Biodiversity Action Plan for Bhutan. Ministry of Agriculture, RGOB 25 country, resulting in 9 protected areas covering 26.5% of the country’s land area. In 1999, biological corridors were identified to link the various protected areas adding another 9% to the PA system. In 2008, a new park was created that further increased it to 48%. Now, Bhutan has one of the largest areas under protected area status.

Map 3: Protected Areas in Bhutan (source: WWF, Bhutan)

76. The only protected area in Samdrup Jongkhar is the Khaling Wildlife Sanctuary having an area of 273 km2. This reserve is located in the southeast of the country and is entirely within Samdrup Jongkhar district. This Sanctuary is expected to form a transfrontier reserve with the reserve in Assam in India.

77. At present, the Sanctuary is still very much a ‘paper park’ and not yet created, with no management in place and no surveys conducted so far. The protected area boundary is also not defined as yet. Currently the area is still managed as a part of the Samdrup Jongkhar Divisional Forest Office. It is expected that pygmy hog (Sus salvanius), the Asian Elephant and Tiger may be found here (NCD, 2004). Only the last feeder ARE3K9 falls in the Khaling Wildlife Sanctuary.

78. The only biological corridor that is in Samdrup Jongkhar is the one connecting Merak Sakteng Wildlife Sanctuary in Trashigang Dzongkhag to the Khaling Wildlife Sanctuary. There are no distribution line feeders passing through any environmentally sensitive areas such as Protected Areas, buffer zones or biological corridors.

2. Rare or Endangered Species

79. The protected area contain a variety of species, several of which are endangered or vulnerable, according to the International Union of Nature Conservation (IUCN) criteria, and others that are protected under the RGOB Forest and Nature Conservation Act (1995). A List of flora and fauna found or expected to be found along the feeders is shown in Appendix 1.

80. The only species of conservation interest that may be found along the alignment in the target gewogs are elephants, leopards, black bears and leopard cats. Since much of the feeder route fall along the foot trails leading to the villages or along the national highway, these areas are already quite disturbed due to the high use by local people to go to and from their villages. Thus even these species are not commonly sighted. Therefore, no significant impacts on flora, fauna or avifauna are expected.

3. Forest

81. In Samdrup Jongkhar, 77.3% of the land area is under forest cover, comprising mainly of broadleaf forest (72%) and the remaining 1.3% comprising of conifer, scrub and forest plantation. The common species found in the forests along the feeders is listed in Appendix 1 but the commonly found species in the broadleaf forests include Albizia species, Alnus nepalensis, Dillenia pentaygna, Bauhinia species, Ficus species, Schima wallichii, Talauma hodgsonii, Tamarindicus indicus, Bombax ceiba, Castanopsis indica, Macaranga species, Melia azedarach, Duabanga species, Michelia species, Altingia species, Engelhardia spicata, Erythrina species and many more. The understorey comprise of Pandanus nepalensis, Musa balbisiana, Arisaema concinum, Artemisia vulgaris, Colocasis species, Dendrobium spp., Elsholtzia fruticosa, Datura stramonium, Rubus species, Eupatorium species, Solanum species, Urtica dioica, Viburnum, Hedychium and many more in addition to a number of ferns and grasses.

1. Wildlife

82. A wide variety of fauna inhabits the forested areas in Samdrup Jongkhar. The lists of species are shown in Appendix 1. Samdrup Jongkhar has a protected area as Khaling Wildlife Sanctuary. Among the species, Asian Elephant, Leopard, Leopard Cat and Himalayan Black Bear are specified as protected species in Bhutan. There is no target electrification area in the protected area. Common wildlife species found in the target project areas include macaques, leopards, bears, wild dogs, wild pigs, barking deer and sambar

83. Although some of the mammalian predators such as Tigers and Leopards do occasionally venture into villages at night to take poultry and livestock, these and the other rarer species are by nature wary of man, and tend therefore to be found deeper in the forest rather than close to inhabitation. Some of the more numerous species like Sambar, Barking deer, Wild pig and Wild dog are considered as significant pests because they damage crops or prey on cattle, even though they may be considered as rare in an international context.

C. Economic Development

1. Land use, industry and agriculture

84. Around 77% of the land area is under forest cover, comprising mainly of broadleaf forest (72%) and the remaining comprising of conifer, scrub and forest plantation. Agriculture makes up 18.2% of the total land cover in the district while only 0.1% is under settlement and 4% consists of water spreads, rocky areas, landslips etc.

85. Excluding Norbugang gewog (which has been recently shifted to Pema Gatshel dzongkhag) the total land area under agriculture is 12,519 acres. This includes 734 acres of wetland, 10,933 acres of dry land, 569 acres under pangshing, and 17 acres of kitchen garden.

86. Livestock production is another important source of income and there are 8764 acres under tsamdro (grazing land). There were 20240 cattle, 2148 horses, 120 sheep, 179 goats, 1497 pigs and 8652 poultry in the district in 2005. (NSB, 2007) There is seven live stock extension centre, one live stock farm, and one satellite veterinary laboratory (9th FYP).

87. Samdrup Jongkhar has 39.1 million m3 of growing stock of forest and its annual yield is estimated to be 317,000 tonnes. (Teri, 2004) There are four Forestry Range Offices and five Forestry Beat Offices.

88. For Industry, there are 19 agro-based, 22 forest based, 5 mineral based, 797 service- based and 365 contract-based industries in the district. There is about 82 km of irrigation channel.

2. Infrastructure

89. The dzongkhag centre is in Samdrup Jongkhar town where the dzongkhag offices, district court, Police stations, Divisional Forest offices, banks, bus stations are all located. The resident population of the town is approximately 6000. Due to its location at the south-eastern border of the country, Samdrup Jongkhar town is considered as the eastern gateway to Bhutan and it is the commercial hub for five eastern dzongkhags.

90. Most farmers from Trashigang, Mongar, Lhuentse, Trashi Yangtse and Pema Gatshel bring their products for sale to Samdrup Jongkhar and where they buy necessary household provisions. With increasing urbanization and rapid increase in population the town is facing problems of urbanization like congestion, lack of infrastructure, pollution and waste disposal and water shortage.

91. Another growing town is Deothang, 18 km from Samdrup Jongkhar town with a population of 2644. The other two towns, Bhangtar in Bakuli, and Diafam in Hastinapur are still relatively small. The Drungkhag Headquarters is located in the Hastinapur with one primary school, one Livestock Extension Centre, one Agriculture Extension Centre, a power supply unit, Forest office, a Revenue & Customs Check post, a Wireless station, Basic Human Unit (BHU), and Renewable Natural Resources (RNR) centre. The Drungkhag also has shops such as the Food Corporation of Bhutan, as well as adequate drinking water supply, electricity, telephone and Wireless connection.

92. For these growing towns, the dzongkhag administration has already identified necessary activities to ensure proper urban development. These include acquisition of land, survey and demarcation, construction of urban roads, storm water drainage system, public toilets, market sheds, urban drinking water, solid waste disposal, parking and streets lighting.

3. Transportation

93. As for registered vehicles, Samdrup Jongkhar has 231 heavy vehicles, 477 light vehicles, and 894 two wheeler. This corresponds to about 6% of total number of vehicles in Bhutan.

94. Samdrup Jongkhar is connected with Trashigang by a highway. A feeder road connects Samdrup Jongkhar town with the Bangtar Drungkhag to the east. The feeder road bifurcates from the highway at Deothang. Samdrup Jongkhar is also accessible from Phuentsholing by the Indian highway along the frontier. Also the Drungkhag headquarters at Diafam in the far south-east corner of the country can be reached by Motorable roads via India. About 4.5% of the total road network in the country passes through Samdrup Jongkhar totalling 203 km. This includes 73.8km national highway, 50 km district road, 52.6 km feeder road, 7.3 km urban road, and 19km farm road.

95. Compared to other gewogs Lauri Gewog is one of the most remote gewogs and is accessible only by mule tracks and footpaths connected from the national highway passes from Samdrup Jongkhar to Trashigang through Orong gewog and Gomdar gewogs. The distance from road head to gewog centre ranges from three hours to one days walk to the farthest villages of the gewog. A new farm road from Tokarong to Gomdar (Tsangchilo) has been constructed as well. Other gewogs like Dalim, Hastinapur, Martshala and Bakuli gewogs also have feeder/farm roads. Motorable road network however is still a big constraint to economic development in most villages. There is a road development plan to connect national highway from Deothang in Samdrup Jongkhar to Nganglam in Pema Gatshel. The length of the high way is about 105 km, of which 40 km is planned to be constructed in 10th FYP.

96. Private minibuses provide a service between the main towns, and minibuses run by tour companies ferry tourists to the more popular trekking destinations. There are few vehicles in the villages (occasionally a motorised tractor), where transportation is mainly by foot or on horseback.

97. There is no air travel within Bhutan as the only airport is at Paro, 30 km west of Thimphu.

4. The tourist industry

98. Before the 1970’s only the royal family had the authority to issue invitations to Bhutan, so almost all foreign visitors were royal guests. The first time a large number of foreign visitors entered the kingdom was for the coronation of the fourth king in 1974, and this was followed soon after by the first paying tourists. Paro airport opened in 1983, and the newly-formed national airline, Druk Air started operating flights to Kolkata. Tourism grew gradually, and in 1991 the industry was privatised, and numerous tourist agencies were established.

99. Visitor numbers have continued to rise, particularly over the past few years, despite the requirement for all tourists to pay a non-refundable daily tariff of US $200 to the tour operator, for the cost of accommodation, food and internal travel. Tourism is now the third largest provider of foreign exchange in Bhutan, earning US$ 18.5 million in 2005, when 13,600 people visited.

100. The majority of tourists visit the dzongkhags like Paro, Thimphu, Punakha, Wangduephodrang and Bumthang, which account for over 77% of the total bed nights. On the other hand Samdrup Jongkhar like other southern and eastern dzongkhags has little or no tourism owing to disturbances and security risks with militant groups in past. Many

D. Social and Cultural Resources

1. Demography

101. The demographics of Bhutan show that it is a country with a low and relatively dispersed population, with the 2005 census4 reporting a total of 634,982 people living at an average density of 16 persons/km2. There is however evidence of people moving from the countryside into towns to seek better economic rewards, as by 2005 almost a third of the population was living in urban areas. Literacy is reasonably good at almost 70% for males and 50% for females, although this will be lower in rural areas. The growing population is shown by the fact that there were 12,538 births in 2004, compared with only 4,498 deaths.

102. Samdrup Jongkhar is typical of most dzongkhags, as it contains a small number of towns (Samdrup Jongkhar, Dewathang, Samrang, and Diafam), and large areas of countryside in which people live in small scattered communities. The total population of Samdrup Jongkhar is 35,960, with 20,555 males and 19,405 females. 26.3% (9945) of this population lives in the four towns, while the rest are rural farmers. There are 7453 households with an average of 4.4 persons per household. 6167 households lives in rural area and 2196 lives in urban areas.

103. The population of Bhutan includes many ethnic groups such as the Sharchops from the east, Ngalongs from the west, Khengpas from the central region, nomads from the north and Lhotshampas from the south. These (and others) are all found in Samdrup Jongkhar Dzongkhag. In the target villages of RE, Sharchops are the most numerous group followed by Lhoshampa. Because of the mix of ethnicities a wide variety of dialects is spoken, of which Dzongkha, Khengkha, Sharchop and various dialects of Nepali are the most common. The majority of the population is Buddhist (around 70%) and the remainder are mainly Hindu, mostly in the southern areas.

2. Health, education and other facilities

104. As in most other dzongkhags, the main administrative centre is housed in the Dzong (originally a fort or monastery). Apart from a hospital and government offices there are other public facilities in Samdrup Jongkhar town, a number of shops and hotels, and an increasing number of buildings.

105. There are two hospitals; one is in Samdrup Jongkhar town and one in Dewathang, and seven basic health units, and 20 Outreach clinics in Samdrup Jongkhar dzongkhag. The hospitals are located at Deothang and Samdrup Jongkhar town. 94.6% of the households in the district have some sort of sanitary facility, 88.9% have access to safe drinking water, and 79.5% have garbage disposal bins. (NSB, 2007) Immunization coverage is 99% and maternal mortality rate per 1000 live births is 3.8. (9th FYP)

106. There is no higher secondary school in Samdrup Jongkhar and students go to neighbouring dzongkhags for after grade 10. There are two middle secondary schools, six Lower secondary schools, five Primary schools and nine Community schools. Within these 22

4 Population and Housing Census of Bhutan 2005: National Statistics Bureau, RGOB, Thimphu.

30 schools, 7,589 students are registered with 208 teachers. To cope with the ever increasing number of students, the lower schools are being upgraded to higher level schools.

107. According to MV line route survey for the target villages in Samdrup Jongkhar, there are five schools, 10 health facilities many of which are Out-reach clinics, one gewog office and one RNR office.

3. History and culture

108. Few tourists visit the remote villages, but this does not mean that they do not contain features of cultural significance. Most of the larger villages have a temple, and there are smaller Buddhist shrines both inside and outside inhabited areas, and various other places or objects that are of significance to the community, including particular trees, rivers and other locations.

109. Samdrup Jongkhar has two famous monasteries, Chho and Phatu. There are 82 religious structures (lhakhangs or goenpas) in the district. Of these 31 are included for electrification in the 10th FYP. These include 1 in Deothang, 9 in Gomdar, 9 in Martshala, 2 in Orong and Pemathang each, and 7 in Wangphu gewog.

V. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES

A. Environmental effects due to project location and design

110. Most of the impacts that occur in this project are due to project location and design. This is because these impacts would not occur if an alternative location or design such as off-grid methods of electrification, by the use of solar panels, had been proposed.

111. There are ten feeders totalling 148km to be constructed to 64 villages in 5 gewogs. Of these, nine are feeders totalling 82.5km do not traverse protected areas although they do cross government reserve forest. The route along the last distribution line measuring 65.5km long is a tentative route which has yet to be finalized based on field verification. This line is proposed as a substitute for the distribution line in Trashigang Dzongkhag (Feeder No. ARE1O1 from Trephu to Khashitheng), and if found to be technically or economically unsuitable during the field assessment will be dropped. This feeder passes through the Khaling Wildlife Sanctuary, which has been designated as a protected area in paper but so far has not yet been operationalized. As such the protected area boundary has not yet been demarcated and the area is still under the jurisdiction of the Divisional Forest Office and thus managed as a government reserve forest.

112. The one impact that is clearly a result of both design and location is the ecological impact of clearing the RoW through forested area as a RoW of 12 m will be cleared of trees and other vegetation wherever these are present along the 148km of MV lines. It will also affect parts of the villages to be electrified, as LV lines will run from transformers to service meters outside most houses.

113. The impact on the forest as stated previously is unavoidable as trees and other vegetation would not need to be removed if the MV lines could have been routed through un- forested areas to these villages (which was not possible), or if the MV lines were run underground (which was not considered because of the excessive cost). Clearance by the Forestry office has been granted after conducting field verification of the proposed alignment.

B. Environmental effects due to Construction

114. The provision of electricity to 1004 households and 58 facilities in the 5 gewogs will involve construction of:  Ten 33 kV MV lines totaling 148km in length, of mainly 3-strand bare conductors, located on 2960 poles, to convey electricity from existing distribution lines;  64 transformers, which depending on the voltage level and the number of phases are either 33/0.240 kV and 11/0.240 kV for single phase lines or 33/0.415 kV and 11/0.415 kV for three phase lines.  185.7km of LV lines, of mainly single-strand covered conductors on 3714 poles to carry electricity to meters outside individual households.

115. Construction will probably start at the tap-off point from the distribution line, and the MV line will be cleared and constructed in sequence, gradually proceeding along the route. However it is not expected that the construction work will cause major negative impacts. This is mainly because:

 The last feeder is still a tentative one at the moment and may be abandoned if proven to be techno-economically unsound.  None of the other 9 feeders are located in protected areas.  The existing lack of access roads to the sites means that all construction components will be carried by manpower to the site from the nearest road.  All other construction work is small in scale (involving the excavation of small pits for pole foundations and erection of poles and stringing of conductors), and will be conducted by small teams without the use of heavy vehicles and machinery;  MV line routes have been chosen to minimize as far as possible the need for forest clearance and the acquisition of private land;  11% of the MV line will be in un-forested areas, where the RoW will not be cleared.  Most of the affected areas outside the villages are uninhabited, and in villages work can be conducted without causing major disruption to people;  Construction work is relatively straightforward and can be completed in a fairly short time (approximately one year for this subproject).

116. Once a length of RoW has been cleared, foundations for poles will be dug by hand, at intervals of approximately 200-250 m for double-structure Section Poles, and 30-70 m for single-structure Interval Poles. Foundations are a standard size of 600 x 700 mm, dug to 1900 mm for 33 kV lines, and after excavation, concrete (mixed on site) is poured into the cavity to create a solid floor, around 250 mm thick. Poles are fitted with a circular metal base plate, which stands on top of the dried concrete, after which the excavated soil and stone is replaced around the pole and compacted tightly by hand. A further layer of concrete is applied 250 mm above and below the ground surface to resist corrosion. The conductors are then attached to insulators at the top of each pole by hand, after which the team moves on to the next location. Where the MV line crosses areas of open ground or agricultural land there is no need to clear the RoW, so the procedure will involve erection of the poles and connection of the conductors only

117. Transformers are attached to double-structure poles, located inside or outside villages. The poles are erected as described above, and the pre-prepared transformers and other components (junction box, fuses, etc) are attached and joined up by hand. Signs are then attached to the pole warning people of the dangers of electrocution.

118. LV lines in the villages will be constructed in the same way as the MV lines but there will again be no need to clear the RoW as poles will mostly be located within the villages, and in this case foundations will be slightly smaller, as the standard size for LV lines is 600 x 700 mm, dug to 1600 mm. Excavated material will again be replaced on top of the foundations once the concrete has dried, after which the covered conductors will be attached by hand. The system will end at a service meter, attached to an exterior wall of each individual house or facility.

119. All elements will be completed before commissioning tests are conducted and the final connection to the distribution line will then be opened.

1. Air quality. 120. There is no data available on the air quality in Samdrup Jongkhar but the major contributors to air pollution in Bhutan are industries and vehicular emissions and the former is absent while the latter is minimal in the project site. The main source of pollution in the rural areas is domestic emissions from burning firewood for cooking and heating, use of kerosene for

121. With the initiation of the project, the only impact on air quality is expected from movement of vehicles and from the dust pollution, as dust may blow in from cleared areas at the poles site. Dust pollution caused by pole construction will be localised at pole sites and RoW only and limited to the construction period only. Most of the foundation for poles will be dug by hand and other implements and equipment (including poles and transformers) will be carried to site by porters, from the nearest road. Air emissions from vehicular movement will be minor as this is limited to a few vehicles to the few selected drop off points. Thus the impact on air quality will be low with no impact at the regional/Dzongkhag level.

122. Mitigation measures which could be undertaken on site include;  To reduce the dust from cleared areas along RoW, the lower ground layer of grass and other low vegetation should be retained and cut vegetation apart from logs can be piled at the edge of the RoW and allowed to dry or to rot down in situ;  Avoid using large machinery to minimize dust and do not burn waste vegetation to prevent forest fires.

3. Noise generation.

123. The main source of noise will be from trucks during material drop off at designated points and to campsites near road access points. These however will be limited to the construction period. All other construction work is small in scale (involving the excavation of small pits for pole foundations and erection of poles and stringing of conductors), and will be conducted by small teams without the use of heavy machinery. Thus noise generation is not expected to be significant as the area is so remote and villages are scattered. Also, with the large forest cover most of the noise created will be buffered by the surrounding forest. There should be no need to mitigate this impact.

4. Natural Drainage.

124. Where distribution lines cross rivers and streams effects on local drainage and water quality can occur during construction period mainly from loose soils at the excavated site for the pole foundations. This impact is however small in scale, dispersed and will only occur at crossing points.

125. Excavation can also affect aquatic ecology and fisheries if large quantities of silt are washed into the river during rain, or if work is conducted within the river itself. This should not be the case here however, because there is no requirement for any construction in river-beds. Also, excavation for the pole foundations is small in scale and dispersed, and there will be no large stockpiles of soil that could create a major point-source of silt pollution. Almost all of the excavated soil will be replaced into the cavity within a few hours of removal, so any run-off would be short-lived and very small in scale. It should therefore also be unnecessary to mitigate potential impacts on aquatic ecology.

126. To minimize the quantity of soil being washed into the river, it is recommended wherever possible, poles will be located at a minimal distance of 30 m from the river on stable soil. Also, excavation works should be conducted during the dry season (which is expected as it may be impossible to work during the monsoons when the river is too high to be crossed).

5. Soil stability and erosion

127. The elevation along the distribution lines range from 600-1700m and the slope is mostly medium (15-45 degrees) to steep. The removal of vegetative cover and soil excavation work may cause some land instability and soil erosion but this impact is expected to occur only during excavation for poles. Also, the depth of the foundation for the 33kV poles is 1900mm and the area for the foundation is 600mmx700mm (BPC, 2007). There are 2960 poles to be constructed. This means that the total volume of soil to be excavated is only 2362 m3. Once the poles are ready to be erected, most of the excavated soil will be reused for backfilling and compaction to secure the poles. This impact can be mitigated easily since the size of the excavated area is small. Safety for workers while working on steep slopes should be covered under worker health and safety issues.

i. Impact on Physical Resources

128. Clearing the RoW is the activity that will bring about the most significant physical changes, as areas that are presently covered with vegetation will be left bare and large quantities of waste brush and timber will be produced. Dust may blow from bare ground, and this could be a health hazard for workers and a nuisance where cleared areas are close to places where people live and work (villages, fields, farm roads, or footpaths). There would also be a serious risk of causing forest fires if contractors were to attempt to burn the waste vegetation.

129. The entire route was surveyed in the course of this study and observations were made regarding land use and ownership, as well as the type of forest and other factors. The Table below shows the main results.

Table 3: Present land use in the RoW along the MV routes (all values in metres)

Feeder Broadleaf Conifer Sokshing Tseri Shrub Total ARE1K1 43851.6 0 0 0 20543.2 64394.8 ARE1K2 1875 0 0 0 502.94 2377.94 ARE1K3 750.08 0 0 0 113.92 864 ARE1K4 697.5 0 0 0 129.47 826.97 ARE1K5 780.21 0 0 0 289.79 1070 ARE1K6 0 0 0 0 150 150 ARE1K7 945 0 0 0 70.09 1015.09 ARE1K8 216.8 0 0 0 0 216.8 ARE1K9 58531 0 2223 0 0 60754 Total 107647.19 0 2223 0 21799.41 131669.6 130. This shows that along the 148km route of the MV line, 131.7 km (89%) runs through forested land, in which a total of 1.78 km2 of forest will be cleared. This is not a major loss in the

2 of forest in Bhutan, but efforts should still be made to reduce the physical impacts of this activity by limiting the generation of dust, and prohibiting the burning of waste material. The contractor appointed should be required to:  Leave a covering of grass and/or other naturally occurring low-growing vegetation where possible along the RoW to reduce dust;  Avoid burning waste vegetation and instead leave this material in situ after cutting, to rot down gradually, and discourage re-growth whilst it is decomposing;  Dispose of all cut trees as required by the Forestry department, who will put the timber to beneficial use, thus reducing the cutting of new trees.

131. The rest of the work involves the excavation of a series of pits for the foundations of the poles for the MV and LV lines and transformers. Excavation is physically invasive and can cause other impacts including: air pollution if dust is produced during digging or blown from piles of soil retained on site; pollution of rivers and groundwater if silt is washed from piles of soil during rainfall; and changes in drainage patterns if rainfall or groundwater collects in excavated areas. Most of these impacts should not be significant in this case because:  Only a small quantity of material will be excavated, comprising 0.7-0.8 m3 per pole, and 2362 m3 in total;  Almost all of the excavated material will be replaced and compacted around the pole foundations, so material will only be stockpiled for a few hours;  Poles are located 30-70 m apart (depending on the terrain), so there will be no large concentration of excavated or stockpiled material at any one location;  Contractors will almost certainly conduct excavation in the drier months to avoid the difficult and often dangerous working conditions of the monsoon.

It should therefore not be necessary to apply any mitigation measures to reduce the physical impacts of the excavation.

132. Construction will also affect the landscape, as in some locations the cutting of trees and erection of poles and conductors may be visible for some distance (for example where the MV line runs along a hillside. However this should also be an impact that does not need to be mitigated, because:  The forest itself will provide a good natural screen as in many areas the trees outside the RoW will be taller than the electricity poles;  Visual impacts are generally considered significant where they affect large numbers of people, and that will not be the case here because of the remote nature of these areas.

ii. Impact on Ecological Resources

133. The removal of trees and other vegetation from along the MV line will also have ecological impacts as it will destroy forest habitat and displace species that are living in these areas. This could affect large and small mammals, birds, reptiles, amphibians, insects and other invertebrates, which might include some of the rare or important or even possibly species that have yet to be recorded, given the unexplored nature of much of the Bhutanese forest. Larger and mobile inhabitants will simply move away to other areas, but some could be damaged or killed during the clearing process. Most of these impacts should not be significant in this case because; i) Providing electricity to rural communities has frequently been shown to deliver major long-term ecological gains that greatly outweigh the short-term losses as people use electricity for cooking and heating instead of firewood, reducing the felling of trees;

ii) Route alignments were selected along existing farm roads and footpaths where possible, as these areas are already disturbed and degraded to an extent, and are thus unlikely to contain key species; iii) Although 1.78 km2 of forest will be lost, none of this is located in the protected areas. iv) The motility of most animals means that they are very likely to move away in response to the disturbance caused by the felling activity, thus avoiding accidental damage or death.

134. Regardless of these factors, efforts should still be made to reduce the loss of forest where possible, particularly in densely forested parts where the habitats would be more ecologically valuable. Also, the ecological impacts of this work could be magnified if workers are allowed to behave irresponsibly on site, causing unnecessary damage to vegetation outside the RoW and hunting wildlife. The Contractor should therefore be required to impose strict controls on worker behaviour by taking the following action:  Ensure that the only trees to be felled are those that have previously been marked by the Department of Forests5;  Prohibit any hunting, fishing or similar activities by site personnel and enforce this measure strictly;  Provide training to raise the awareness of all site workers and staff on the value and fragility of wildlife and natural habitats, particularly those found in these locations;  If workers are housed in labor camps near the sites, ensure that these are located in areas where no forest clearance is required,  Ensure that labor camps are provided with adequate catering, heating and other services, so that workers do not need to hunt or collect firewood.

135. Excavation can also affect aquatic ecology and fisheries if large quantities of silt are washed into the river during rain, or if work is conducted within the river itself. This should not be the case here however, because:  None of the MV line routes cross large rivers, so there is no requirement for any construction in river-beds;  As noted above, it is very likely that Contractors will excavate in the dry season to avoid the difficult working conditions of the monsoon;  Excavation for the pole foundations is small in scale and dispersed, so there will be no large stockpiles of soil that could create a major point-source of silt pollution;  Almost all of the excavated soil will be replaced into the cavity within a few hours of removal, so any run-off would be short-lived and very small in scale. 136. It should therefore also be unnecessary to mitigate potential impacts on aquatic ecology.

iii. Impact on Economic Development

1. Positive impacts 137. The primary positive impact of the project will be access to electricity for lighting, cooking and heating for individual households as well as governmental and religious

5 Before providing the No Objection Certificate that is required as part of the application for Environmental Clearance, staff from the Department of Forests inspect the proposed RoW and apply a paint mark to all trees that the contractor is permitted to fell. 37 institutions. A number of secondary impacts are expected to occur as a result of the project. These include positive impacts on the health and lifestyle of local people through the use of clean technology and reduction of exposure to smoke from use of fuel wood and kerosene, and other health risks. They will also save time processing for fuel wood permits from the Forestry office or getting coupons from the Gups office for kerosene.

138. The availability of electricity should bring significant economic benefits to the rural communities, because people will have more time available for work as less time will be spent cutting and carrying firewood, so incomes will increase. People will be able to use electrically powered machinery to process their farm products or to offer services to the community (e.g. rice mills), so again incomes will increase. Others can benefit from the project if employed during the construction period as porters or for clearing of RoW.

139. Once the telecommunication network is available, farmers can use mobile phones, especially during emergencies. With television and radio farmers can update themselves on current events around the country and the world while saving money spent on purchasing radio batteries. If budget is available, the RNR offices, BHU’s, ORC can be equipped with electrical ovens, sterilizers, fridges and other improved medical equipment and therefore provide better health services. Government institutions can also network with their offices in the district headquarters or Thimphu via internet

140. School students will benefit from the project as electrification will enable them to have computers, internet connections and access to online educational materials. Use of electrical stoves can be promoted in schools to reduce demand for firewood as well as exposure to smoke. Students and monks/nuns/old people residing and meditating in the religious institutions can also live cleaner, healthier lifestyles while devoting more time for study in the early hours of the morning and late evenings.

2. Impact on private land holdings and agriculture

141. All designated forest in Bhutan is owned by the government, so there will be no need to purchase land for the MV line where it runs through the forest. Some of the un-forested areas are also owned by the government, and will also be provided by the appropriate agency. Some land is however privately-owned (mainly fields and other agricultural land), and the Table below shows the amounts in each gewog, as identified during the route surveys.

Table 4: Length of MV line passing through private land (length in metres)

Total Feeder Chuzhing Kamzhing Tsamdro Tseri length ARE1K1 0 7208.65 0 0 7208.65 ARE1K2 0 1175 0 0 1175 ARE1K3 0 850.08 0 0 850.08 ARE1K4 0 497.5 0 0 497.5 ARE1K5 0 680.21 0 0 680.21 ARE1K6 0 356.21 0 0 356.21 ARE1K7 0 645 0 0 645 ARE1K8 0 0 0 0 0 ARE1K9 0 0 0 4723 4723

Total 0 11412.65 0 4723 16135.65

142. Where poles cannot be located on government land (these locations and amounts will be determined by surveys conducted by BPC during project implementation), these will have to be located on private land. The general practise for most development project is to acquire private land through the legal mechanism of the Land Act (revised 2007), through which the government provides owners with an equivalent allotment of substitute land in the same dzongkhag. However, for this project, the areas required for pole foundations are so small (around 0.5 m2 each) and residents are so eager to have electricity supplied to their homes, that landowners normally allow BPC to locate poles on their land, without the need for purchase or acquisition. Therefore, land acquisition for the alignment and poles will not be necessary.

143. ADB safeguards policy (2009) requires that no-one should be worse-off as a result of an ADB-funded project, and if this is the case, the Executing Agency provides additional compensation (for loss of crops, structures and other assets) through the mechanism of a Resettlement Plan. This should however not be necessary in this case, because;  Privately-owned areas are normally not forested so there is no need to acquire and clear a RoW, so the only land to be obtained is small parcels at each pole location;  Areas required are so small and dispersed (approximately every 50 m) that it is very unlikely that a significant proportion6 of the land of any one owner or tenant would be acquired. In this sub-project only 11% of the entire MV length will be affected in 64 villages;  Wherever poles are situated on farm land, these will be located at field boundaries as far as possible, to reduce the loss of productive land.

It should therefore not be necessary to provide additional measures to reduce the economic impacts of land acquisition.

144. Other features with economic implications that could be affected by construction of the MV and RV lines and transformers are infrastructure (as excavation in villages could damage water supply pipes) and agriculture (as transport of materials to site could temporarily block farm roads, making it difficult for farmers to export produce). These can both be avoided by straightforward consultation with affected local communities to determine the locations of all infrastructures and ensure that these are avoided, and to plan transportation schedules with farmers to avoid any conflict or disruption.

3. Impact on facilities. 145. Excavation works along the alignments may cause disruption to the target village in terms of disruption/damage to water pipes, impede or block access along routes with construction material, or disturbance during sensitive and religious times. To minimize this, the contractor should consult the Gup/Tsogpa and inform them of the intended project implementation process, so that they are aware when materials are being transported along the narrow routes, and facilities like drinking pipes, drainage, religious sites can be avoided. Also, the contractor should respect local tradition and culture and avoid working during religious festivals/times.

4. Aesthetic impacts.

6 ADB policy on Involuntary Resettlement considers loss of land to be significant if it amounts to 10% or more of the total land holding of any one owner. 39

146. Construction will also affect the landscape, because in some locations the cutting of trees and erection of poles and conductors may be visible from greater distances from across the valley. Visual impacts are generally considered significant where they affect large numbers of people, and that will not be the case here because of the remote nature of these areas.

147. This should also be an impact that does not need to be mitigated, because in many areas the trees outside the RoW will be taller than the electricity poles and because the surrounding forest itself will provide a good natural screen for the electricity poles. To ensure that the MV lines do not visually impair the beauty of the Lhakhangs and their surroundings, these should be aligned as close to the border of the forest and agricultural fields. iv. Impact on Social and Cultural Resources

1. Impact on Cultural and Religious sites

148. In the project site there are a number of religious sites in different villages. The monasteries hold religious and historical texts, sacred murals, paintings and statues as well as valuable offerings made by the public. Electrification of these important structures will improve the security of these sacred facilities as miscreants will be less confident of committing robberies or vandalising them due to the increased risk of being caught. It will also benefit visitors, monks and senior citizens or caretakers residing there in terms of lighting, heating and cooking.

149. In order to minimize impacts on these sites, surveyors were instructed prior to conducting field surveys to consult closely with local representatives so that distribution lines could be aligned to avoid impacting them. During construction the contractors should also consult closely with the local caretakers so that construction activities do not impact or hinder religious activities

150. The main hazard to people from the operation and maintenance of the completed RE system is the risk of electrocution. This is a danger to i) Rural consumers who are not highly educated and are generally unaware of the dangers posed by electricity; and ii) BPC workers when repairing lines or components.

2. Social impacts. 151. The MV lines will be located in remote uninhabited areas, so it is very unlikely that construction will affect any locations or features that are of social or cultural importance, such as heritage sites, temples, or more modern facilities such as schools or clinics.

152. However the transformers and LV lines will be built within and near villages, so there could be impacts on inhabitants, their activities and locally important locations. As the work will involve excavation then the main impacts are likely to arise from construction noise, dust, visual intrusion, impeded access, and the presence of migrant workers. These are not expected to be major impacts, because: i) Most villages contain between 4-33 households, so the work should be short-in duration, being completed in a few weeks only; ii) Excavation will be very localized, affecting areas of 1 m2 roughly every 30-70 m, so the mounds of soil should not greatly impede access or produce significant dust; iii) In any one village work will probably be conducted by one or two small teams of 5- 10 workers each, so individual locations will not experience a large influx of foreign workers;

iv) People will tolerate short-term temporary disruption if (as in this case) they are aware that they will gain significant benefits once the work is completed.

153. Efforts should still be made to reduce the level of disruption where possible, and to achieve this, the Executing Agency (DoE) should:  Consult all affected communities in advance to inform them of the purpose, nature, duration, extent and timing of all work in and around their village;  Determine the location of all sites that are of local social or cultural importance (temples, shrines, meeting places, etc) and ensure that no poles are located in the vicinity, and no conductors are strung overhead;  Consult the custodians of all social and cultural facilities that are to be electrified as part of this project (monasteries, schools, health centres) and plan the work to avoid sensitive times (such as key dates in the religious calendar, examination periods, etc).  The presence of migrant workers in communities can be disruptive if the workers do not follow local norms of behaviour, and if they bring other problems such as socially or sexually transmitted diseases. Such difficulties tend to be greater in rural areas where existing social and cultural bonds are stronger than in cities, and where inhabitants have less experience of people from other cultures. Migrant workers are often housed in labour camps, which can create further problems both for workers and host communities if they are inadequately equipped and serviced, creating dissatisfaction and unrest, and environmental and public health problems. Importing workers also deprives local people of the socio-economic benefits of obtaining temporary employment in construction workforces, which can be significant for poor rural communities.

 In Bhutan RE Contractors prefer to employ local people because they are more accustomed to the difficult terrain and are more physically able than foreign labourers, who are normally imported from India. However it is generally still necessary to import some workers because the scattered rural population in Bhutan means that not enough people are available, particularly at times of intensive agricultural activity, when rural Bhutanese prefer to work in their fields.

154. These are complex issues, which need to be addressed by a range of measures. Contractors should first be required to ensure that they employ as many people as possible from communities in the vicinity of the construction sites, so that at least some economic benefits are directed to those residents who are most affected by the work.

155. If it is still necessary to employ foreign workers, then contractors should ensure;  that they are migrant workers housed in adequate, and properly cleaned camps with safe drinking water and temporary sanitation facilities away from water sources;  accommodation camps should be located in areas where no clearance of vegetation is required;  Solid waste must be collected and buried offsite  Workers must be made aware of required behavior when interacting with host communities;  Workers must be prohibited from hunting, fishing and logging;  Once construction is complete, campsites must be cleared, all temporary infrastructures demolished and all materials removed and the site restored.

156. Contractors should also protect the health of workers and the host community by controlling the spread of disease, and providing treatment where necessary. Contractors should therefore be required to:  Screen workers at their point of origin for the more virulent and contagious diseases, including HIV/AIDS, TB, Malaria, Swine flu and Bird flu or any other current disease;  Conduct regular screening of all workers for these and other infections;  Provide access to medical treatment for workers at the dzongkhag hospital if necessary;  Distribute pamphlets or posters to raise the awareness of workers and host communities of the risks of the various types of socially and sexually transmitted disease, and ways of avoiding infection;  Implement practical measures to reduce infection, for example by providing condoms free to workers.

157. Clearance of the RoW is an activity in which there is a significant element of danger, particularly to workers, but also to inhabitants of villages, should they stray into the vicinity. Contractors will be required to prepare and implement a Health and Safety Plan covering all elements of construction. This will include measures that are common to most construction sites, such as:  Excluding the public from the site;  Ensuring that workers are provided with and use Personal Protective Equipment;  Health and Safety Training for all site personnel;  Documented procedures to be followed for all site activities;  Maintain accident reports and records;

158. In this case the H&S Plan should also include measures to reduce risks specific to tree felling, such as:  Ensuring that all trees and branches fall into the RoW when cut;  Liaison with all local communities to inform them of the nature, extent and timing of all clearance work and to raise awareness of the dangers.

C. Environmental effects during Operation and Maintenance i. Impact on Physical Resources

159. Maintaining the RoW by removing overhanging branches and high-growing vegetation from beneath the lines will have very little impact on the physical environment. In fact the general approach of BPC in allowing low-form vegetation to re-grow in the RoW will have benefits in reducing dust and improving soil cohesion and conservation, and helping to prevent landslides that are a risk throughout Bhutan during the monsoon rains.

160. Even though the repair of faults may involve excavation of new foundations and erection of new poles and conductors, this should also have few physical impacts as repairs generally affect short lengths of line, so the work is normally very limited in extent. Even where poles are brought down by landslides it is very rare for these to affect more than two or three poles, which can be repositioned without causing major physical changes. Similarly repairs of the LV lines in villages will be small in scale and thus unlikely to cause physical impacts.

161. Transformer maintenance can contaminate land and water if oil is spilled, so BPC staff should follow their established procedure carefully to prevent this, and should remove and dispose of any contaminated soil in a sealed drum if a spillage occurs. ii. Impact on Ecological Resources

162. Maintaining the RoW and repairing faults along the line will have no major ecological impacts as the work is very small in scale and infrequent, and involves few changes to the existing situation. The practice of allowing some re-growth of vegetation along the RoW will also have ecological benefits as it will allow plants and animals to re-colonize the area. Because the forest canopy is now open in these areas the species will be different from those that were originally present, which could be seen as a further gain as this will increase the diversity of Habitats.

163. The major ecological benefit will occur over the longer term, as the availability of electricity in these villages reduces the felling of trees for firewood. Current estimates are that each rural household in Bhutan consumes around 3.5 kg of firewood per person per day7, so these ecological gains should become highly significant over time and will greatly exceed the short-term losses from the original clearance of the RoW. iii. Impact on Economic Development

164. The routine maintenance of the RoW will not have economic impacts as it will not affect agricultural areas, or farm roads used for transporting produce. If a line failure requires the repositioning of poles, it should not be necessary to purchase land for the new foundations, as owners are very likely to donate the very small amounts of land required (1 m2 per pole) in order to restore the electricity supply. New foundations will be dug close to the old ones, so wherever possible land from the same owner should be used, so that the previously used area can be returned.

165. Power outages will have negative economic impacts as people will be unable to use machinery they have installed to diversify their means of livelihood, for the period in which the system is shut down. BPC should therefore keep such periods to a minimum, by responding to line problems rapidly; and repairing faults rapidly and effectively.

166. The Performance-Based Incentive schemes within BPC, whereby annual salary increments and bonus payments are linked to the performance of the electricity supply system, should improve the efficiency of the service. iv. Impact on Social and Cultural Resources

167. The main hazard to people from the operation and maintenance of the completed RE system is the risk of electrocution. This is a danger to i) Rural consumers who are not highly educated and are generally unaware of the dangers posed by electricity; and ii) BPC workers when repairing lines or components.

168. BPC have procedures set down in Operation and Maintenance (O&M) manuals, which describe how all work on distribution lines is to be conducted. They also have Health and Safety (H&S) Manuals, which describe the personal protective equipment that is to be provided

7 FAO (2001): National Strategy for Stoves and Other Alternative Energies, Project No BHU/99/005 43

(including safety helmets and belts for climbing poles), plus emergency procedures, etc. However there have been a small number of recent fatalities, which suggest that the systems are not functioning adequately. Some measures for BPC to undertake include:  Ensure that staff understand and comply with the BPC O&M and H&S manuals and procedures;  Continue providing regular training for all BPC operatives to raise awareness of the dangers of the work being conducted, the equipment that is to be used, and the procedures that must be followed;  Conduct regular supervision of field workers during both RoW clearing and repair of faults;  Conduct regular management reviews of safety records, and follow-up with remedial action where necessary; and  Continue to conduct community education programmes to raise the awareness of all target households before and after they are connected to the grid regarding the dangers of electricity, and the correct manner in which house systems should be used.

169. If these actions are implemented thoroughly, then the RE system should function without major accidents or fatalities from misuse or inappropriate operation. There should then be a wide variety of social benefits for the target households and their wider communities from the provision of electricity already discussed previously. Together these should greatly improve the health, wellbeing and quality of life of citizens and the communities, and greatly increase the overall social capital of these rural areas.

170. Once electricity is provided, people rapidly become used to and even become dependent upon the service and the new way of life it supports, and are not greatly tolerant of interruptions in the service. This reinforces the need for BPC to take the actions recommended above in order to minimise power outages by ensuring that the maintenance procedures (RoW clearing, routine checks of lines and transformers) are conducted regularly and diligently; and respond to faults rapidly and ensure that repairs are conducted quickly and effectively.

171. Any disturbance or disruption that residents may experience from the re-erection of poles or replacement of conductors in the villages will be viewed as very minor when compared to the inconvenience of being without electricity, so there should be no need for mitigation.

VI. ANALYSIS OF ALTERNATIVES

172. A number of alternatives were considered for the project. These included a) the no-build alternative, and b) use of solar energy (Photovoltaic panels) and c) on-grid electrification. Each alternative is discussed below.

a. Alternative 1. 173. Maintaining the status quo of not undertaking the project (i.e. the no-build alternative), there will be no ecological impact on the environment or biodiversity from this project. However, the total number of households electrified will remain less than 50%, and the government will fail to achieve its target of electricity for all by 2013.

b. Alternative 2. 174. Using solar energy (photovoltaic panels) is a better alternative than the ‘No project” one, in terms of development in the rural areas. There are a number of constraints with this alternative; for instance a) it can only be used for lighting purposes, so firewood consumption for heating and cooking will still remain high, b) high maintenance cost for repair of parts and c) need for technical knowledge and low durability.

c. Alternative 3. 175. Provide on-grid electrification. This is the alternative that is proposed by this project. Through this all target villages will be provided with electricity from the existing grid system. The project is expected to significantly reduce demand for firewood, as this is the primary source of heating and lighting in the remote communities. This alternative will contribute positively to improving the lives of the target communities through reduced exposure to smoke, improvement in living conditions, increased communication via use of mobiles and opportunities for seeking alternative livelihood options. Local government institutions like BHU, ORC, Schools, RNR centres and Religious institutions will also benefit through reduced time and money spent on sourcing firewood from local communities, as well as increase in accessibility to information through various media sources, internet and improved communication. Students will have extra time to study during early mornings and evenings.

Table 5: Comparison of alternatives Parameters No electricity Use of solar energy On grid Rural Electrification Economic cost Cost to farmers include cost - maintenance cost depends on -High cost to government of kerosene, location of households and -Cost of in house electrification access to repair facilities -Lack of technology for repair Developmental Village/gewog considered -Community is still considered -Community is considered impacts & underdeveloped ‘underdeveloped’ ‘developed’ people’s -Use limited to lighting purpose -Can explore other livelihood perception alone alternatives such as rice mills, Social benefit Household still exposed to -Clean and renewable energy Beneficiaries include smoke, dirt, and increasing -Benefit restricted to lighting only -Households distance/time spent in fuel -Schools wood collection -Government & Religious facilities Environmental Yearly increase in fuel wood -Yearly increase in fuel wood Main impacts are impacts consumption consumption per family -Impact from Right of Way of -Improper disposal of battery Distribution line may cause heavy metal pollution -Localized impact on endangered

especially in rural areas wildlife -Aesthetic impacts -Aesthetic impacts 176. The third alternative ‘providing on-grid electrification for the proposed villages ‘ is the most feasible in light of the easy availability of hydropower in the country, the positive environmental benefits, and most importantly because this is what the local communities prefer. The first alternative is not feasible because electricity is included as a measure of development in a village and therefore is always given high priority in the list of developmental activities for any gewog plan. It is impossible for the government to overlook this demand especially since the country is a major generator of Hydropower energy. While there will be no environmental cost from this alternative, with increasing population it is expected that the demand for fuel wood will increase each year, putting very heavy pressure on the already dwindling forest resource.

177. The Solar PV system involves the utilization of renewable and clean energy, but it is considered a temporary measure for those villages where the cost of providing electricity is too high for the moment. The utility of the solar system depends on the location of the target villages. For instance, if villages are located close to access roads, then repair and maintenance is easy compared to remotely located villages where there are no such facilities available.

178. Based on the above comparisons the first two alternatives are no longer under consideration. However, there are still some villages that are too remote and it is too expensive or technically very difficult to provide on-grid electrification. In such cases, these villages will be provided off-grid electrification.

VII. INFORMATION DISCLOSURE, CONSULTATION AND PARTICIPATION

A. Project stakeholders

179. Most of the main stakeholders have already been identified and consulted during preparatory phase of this project. Primary stakeholders are  Residents of 1004 households that will be electrified by this subproject;  Residents and users of 58 facilities that will be electrified by this subproject;  People who work on agricultural land that will be crossed by the MV lines;  Owners or users of land that is acquired for the erection of poles for MV or LV lines; but who are not beneficiaries

180. Secondary stakeholders are:  DoE as the Executing Agency;  BPC as the Implementing Agency.  Department of Forest as the custodian of the government reserve forest  NEC as the agency granting Environmental Clearance; and  Dzongkhag Administration under whose jurisdiction the sub-project is being implemented; and  ADB

B. Consultation and disclosure to date

181. In order to involve various stakeholders during the preparation of the EIA, consultations were held with the Project Management Office at Thimphu and the Rural Electrification Staff at the Field office.

182. One public consultation was held in June, 2009 with 22 residents of Phaju Goenpa and on 4th July 2009 with the affected community. In total 91 participants including government employees and village representatives/ tsogpas attended the meeting. During the public consultation, a presentation was given on the aim of the subproject and the benefits it will bring, together with the likely impacts and the ways in which they will be mitigated. Participants were invited to discuss their views and concerns, which were then incorporated into the EIA. Appendix 2 contains a summary of the meeting.

Table 6: Details of public consultation conducted

Date Location Total participants 13th June, 2009 Khashitheng 22 23 June, 2009 Martshala 9

Table 7: Summary of public consultation Issue Participant’s opinion, comments and suggestions General perception about the Participants attending the meeting in Phaju Goenpa were very happy that the project was project finally coming through because they had expected their village to be included after the previous meetings but that did not happen. The participants were happy that such isolated and remote villages like theirs were being considered for electrification and expressed their gratitude to the government as well as the donors for this initiative. Villagers of Saytsalo and Martshala were also very happy that they too are going to get electricity and hoped that their standard of living will improve drastically. They also expressed their gratitude to the king and the government. Alignment of the distribution Residents were informed that BPC was currently exploring two options for the route line alignment, from Trephu to Khashitheng and the second one from Diafam. Residents said that they prefer the first route because although the first route will have more environmental impacts, the second route has more landslide prone areas, unstable hill slopes, no permanent bridges and there will also be risks of erratic supply. Project benefits Some of the benefits mentioned by participants include; -replacing water mills with electricity will make it easier for owners - Reduction of their dependence on fuel wood and kerosene, which would in turn help the villagers to live in a healthy and clean environment as well as conservation of forest, - Women can cook more easily and faster by using rice cooker, curry cooker, boiler, refrigerator, etc. -improved protection of crops and livestock; -Improvements in living standards and possibilities to generate more income by weaving late at night or focus on other activities during the evenings. Alternative energy Most residents use between three to four liters of kerosene for lighting and firewood for heating and lighting. No households in the villages use Solar systems

Disadvantages of the electricity The only negative impact of electricity is that it will be risky and dangerous as residents do not and its project- know how to operate these or when there is a short circuit.

Public consensus They said they had no issues or concerns about the project and all of them have already signed the public consensus forms giving their consent to the project. Project implementation and BPC staff had already conducted a meeting to discuss the project when they conducted the work options route survey. During that meeting the community had requested BPC to include them in the electrification program and participants said that they were very happy to know about the positive development towards the fulfillment of their request. They hoped that the funds will be received soon and the project can be initiated as soon as possible. Any other issue Participants said that much of the topics discussed were similar to the previous meeting with BPC staff, so they did not have any queries and felt that the project will benefit all of them even though some may be affected at the individual level. Since it was for the greater good of the community, they are willing to make few sacrifices Hire of workers. Residents of saytsalo said that they would like to request that honest and kind contractors be hired because during previous projects the residents experienced many difficulties with timely payment by contractors

183. This IEE will be disclosed to the public by making it available at RED offices in Samdrup Jongkhar and the project as a whole will be disclosed to a wider audience via the ADB website.

C. Future consultation and disclosure

184. DoE/BPC will extend and expand the consultation and disclosure process significantly during implementation of the project. They will conduct a wide range of activities in relation to all subprojects in each dzongkhag, to ensure that the needs and concerns of stakeholders are registered, and are addressed in project design, construction or operation where appropriate. The program of activities will be developed during the detailed design stage, and is likely to include the following:

185. Consultation during pre-construction stage:  Focus-group discussions with affected persons and other stakeholders (including women’s groups and NGOs) to hear their views and concerns, so that these can be addressed in subproject design where necessary;  Structured consultation meetings with the institutional stakeholders (government bodies such as Department of Roads, NEC, Department of Forest) to discuss and approve key aspects of the project;

186. Consultation during construction:  Public meetings with affected communities to discuss and plan work programmes and allow issues to be raised and addressed once construction has started;  Smaller-scale meetings to discuss and plan construction work in individual villages to reduce disturbance and other impacts, and provide a mechanism through which stakeholders can participate in subproject monitoring and evaluation;

187. Project disclosure:  Public disclosure meetings at key project stages to inform the public of progress and future plans.  Formal disclosure of completed project reports by making copies available at the RED field office and the BPC head office.

VIII. GRIEVANCE REDRESS MECHANISM

188. The target gewogs that will be affected by the project has a total of 1004 households, 10 schools, 36 religious sites, 6 Basic Health Units, 2 RNR centres, 3 Gewog offices and 1 privately owned Rice mill.

189. The process of including these villages in the Project is pretty straightforward. Keeping Rural Electrification Masterplan 2005 as the reference, the un-electrified villages were included in the project scope based on the Dzongkhag’s priorities. The list of the targeted households was then provided to BPC for implementation. This preliminary list of non-electrified villages was further segregated into two, those that could easily be connected to the grid and those that were too far in terms of distance, or due to technical and economic reasons.

190. Using the list of villages selected on grid electrification, BPC fielded surveyors to conduct field studies to finalize which distribution lines could actually be included in the target areas. Criteria used for this include a) distance of the village to the nearest feeder, b) number of houses to be electrified, c) accessibility and means of transportation d) location of the villages (environmental sensitivity), e) topography, and f) material cost, transportation and head loading costs. Based on the field data, the list of distribution lines, number of beneficiaries, along with the technical route survey to ascertain length of MV and LV lines, number of substations, transformers etc. was finalized.

191. MV lines cross mainly forested areas but these routes have been selected to run along existing access routes, tracks and pathways where possible, because in these areas there has already been some clearance of trees and other vegetation, so this reduces the amount of new felling required. The Table shows the amounts along each distribution line, as identified during the route surveys.

Table 8: Length of distribution lines and affected persons/beneficiaries (length in metres) total No. Feeder No. Length of MV line Length of LV line Villages consumers 1 ARE1K1 71653.8 139099.0 56 982 LV Extension from 2 Existing 63 kVA 0.0 3610.0 1 6 3 ARE1K2 3552.9 2933.0 1 7 4 ARE1K3 1714.1 1058.0 1 4 5 ARE1K4 1324.5 11108.0 1 16 6 ARE1K5 1750.2 13121.0 1 12 7 ARE1K6 506.2 3553.0 1 10 8 ARE1K7 1660.1 4504.0 1 12 9 ARE1K8 216.8 6722.0 1 13 10 ARE1K9 65500 0 0 TOTAL 147878.6 185708.0 64 1062

Table 9: Total length of feeder through government and private land (length in metres)

government private Total Feeder land land length ARE1K1 64394.8 7208.65 71603.45 ARE1K2 2377.94 1175 3552.94 ARE1K3 864 850.08 1714.08 ARE1K4 826.97 497.5 1324.47 ARE1K5 1070 680.21 1750.21 ARE1K6 150 356.21 506.21 ARE1K7 1015.09 645 1660.09 ARE1K8 216.8 0 216.8 ARE1K9 60754 4723 65477 Total 131669.6 16135.65 147805.25

192. The total length of all the distribution lines is 147.8km of which only 16km passes through privately-owned (mainly fields and other agricultural land) land in 64 villages, which amounts to 11% of the total line length. These areas that are traversed are so small and dispersed (approximately every 50 m) that it is very unlikely that a significant proportion8 of the land of any one owner or tenant would be acquired;

193. Along the distribution line it is estimated that 2960 poles will be constructed, of which there will be 2638 poles on government land and 322 poles on private land. Where the lines cut across private land, poles will be located on field boundaries where possible, to reduce the loss of productive land. The areas required for pole foundations are so small (around 0.5 m2 each) and residents are so eager to have electricity supplied to their homes, that landowners normally allow BPC to locate poles on their land, without the need for purchase or acquisition.

194. A key element of the national Environmental Clearance application process is the provision of signed No Objection Certificates (NOC) from stakeholders that are specified in the guidelines, including all affected households, Public consultation and participation was sought beginning from project planning and route identification phase wherein the local village representatives were called upon by the District authorities to conduct awareness on the prospective project and to seek the consensus from potential affected persons.

195. In the past, any grievance against RE projects have been approached personally to BPC office or forwarded through the Gup to the Dzongkhag and BPC office and resolved informally through mutual agreement wherever possible. In other cases, where the APs are not satisfied the case has been forwarded to the court for a resolution. There have been instances in the past when the APs put their grievances after the lines are constructed and commissioned. In such cases, it was very difficult for BPC to realign the distribution lines because shifting a pole required realigning 4 to 5 poles both up-stream and down-stream. Due to the high cost of the adhoc and unbudgeted realignment, the BPC has asked APS to do it at

8 ADB policy on Involuntary Resettlement considers loss of land to be significant if it amounts to 10% or more of the total land holding of any one owner. 51 their own cost. To avoid such complications in the future, BPC now conducts awareness program during the preconstruction period.

196. ADB safeguards policy (2009) requires that no-one should be worse-off as a result of an ADB-funded project, and if this is the case, the Executing Agency provides additional compensation (for loss of crops, structures and other assets) through the mechanism of a Resettlement Plan. This should however not be necessary in this case, because privately- owned areas are normally not forested so there is no need to acquire and clear a RoW, so the only land to be obtained is small parcels at each pole location. BPC field staff has been clearly instructed to ensure that where poles are situated on farm land, these are located as field boundaries as far as possible, to reduce the loss of productive land. Besides, the distribution substations are pole-mounted for all RE works minimizing private land usage.

197. A memorandum of Agreement cum Application for Rural Electrification was prepared between the BPC and the beneficiaries through the local government (village headman/Gup) and forwarded to the BPC after being endorsed by the Dzongkhag administration. This agreement states that the applicants are aware of the ARE project and would like to be included for the electricity service connection as potential consumers. The applicants agree to provide the Right of Way for the construction, operation and maintenance of electricity lines passing through their private land, free of cost to the BPC as they are the primary beneficiaries. The BPC should avoid traversing existing khimsa (where the house exists) at all costs and try to avoid the use of cultivated land as much as possible.

198. Because the impact on the private land of any individual household is so small with no impact on infrastructure, RE schemes are not expected to have major negative socio-economic impacts as there will be no need for land acquisition or resettlement. Wherever possible, the project will avoid or minimize traversing private land by identifying possible alternative routes. For the loss of Crops and Fruit trees if any, the BPC will compensate the APs at the prevailing government approved rate, which shall be built into the project cost. A copy of the Memorandum of Agreement is in the Annex.

Complaints and Grievance Redress mechanism

199. During the process of project implementation, stakeholders may file complaints if they are not happy with the alignment of the distribution line, pole, substation or service centre locations. Any person who believes that his/her land or structure has been expropriated or altered and believes that their private land, house, or agricultural crops are being unfairly affected by the project will be able to express their grievances through a grievance redressal mechanism that will be instituted under this project. Through this mechanism the Affected Person may submit their grievance to the Dzongkhag office, which will record the grievance and ensure that all complaints and resolutions are properly documented and also available for review for monitoring purposes. The Dzongkhag office will conduct the necessary field visit to verify and assess the grievance/complaint, determine the validity of the grievance, and resolve the grievance within 1 month of receipt of the complaint.

Grievance Redress Procedure

200. The grievance redress procedure will be as follows; 1. Each grievance must be dealt with within a two weeks of receipt of complaint from the AP. 2. The necessary field verification/assessment will be conducted and the AP informed of a decision in writing within 4 weeks/28 days 3. Issues may be resolved amicably through third party arbitration and negotiation but If APs are not satisfied they can take recourse to the civil court if he/she so desires, or resolve the issue by taking it to next level of Grievance Redress, which is the National Land Commission (NLC), the highest body to approve land replacement and compensation allotments in the country.

201. During Project implementation, the BPC will ensure that APs are briefed on the grievance redress mechanism and procedures.

202. In the unlikely case of unforeseen environmental impacts, any grievances regarding environmental impacts will be submitted to the Dzongkhag Environmental Officer and BPC, who will conduct a field assessment of the situation and recommend appropriate mitigation measures to be implemented by the BPC. Where the Environmental Officer unable to take a decision, the case will be referred to the National Environment Commission for advice on necessary corrective measures. Such grievances will also be documented for monitoring purposes. All environmental issues must be resolved within 21 days of receiving the complaint.

IX. ENVIRONMENTAL MANAGEMENT PLAN

A. Summary of environmental impacts and mitigation measures

203. All the potential adverse impacts of the project have been identified and discussed in the previous chapters. All the potential adverse impacts of the project have been identified and discussed in the previous chapters. The EMP table outlines potential environmental impacts and mitigation measures proposed to reduce these impacts to acceptable levels. It also identifies the agency responsible for a) planning and implementation as well as b) supervision and monitoring, for each phase of the project.

204. Taking off from the first table, the second table then describes: (i) mitigation measures, (ii)parameters to be monitored, (iii) location, (iv) measurement method, (v) frequency of monitoring, (vi) responsibility (for both mitigation and monitoring), and (vii) cost of monitoring. Most of the mitigation measures are fairly standard methods of reducing the impacts of RE schemes (preventing damage outside the RoW, providing suitable living conditions for imported workers, etc), and experienced domestic contractors should be familiar with most of the requirements.

B. Environmental Monitoring Plan

205. During the construction stage all mitigation activities are the responsibility of the Construction Contractors employed to build the infrastructure. Responsibility will be assigned via the contracts through which they are appointed (prepared by RED during the detailed design stage), so they will be legally required to undertake the necessary actions. Mitigation when the system is operating is the responsibility of the Electricity Services Divisions (ESD) as the agency responsible for maintaining the system in working order.

206. A senior Environmental Officer (EO) will be responsible for implementing the Environmental Monitoring Plan in the construction stage, and reporting the results to RED, with recommendations for remedial action if measures are not being provided or are not protecting the environment effectively. The senior EO will be assisted by more junior EOs who can make many of the routine observations on site. Post-construction/Operation monitoring will be conducted by BPC.

207. Monitoring of such measures normally involves making observations in the course of site visits, although some require more formal checking of records and other aspects. There will also be some surveys of residents and workers, to review those measures that are aimed at ensuring their safety and wellbeing. Based on the EMP, the environmental officer, BPC will prepare the necessary monitoring checklist and surveys for themselves and ESD staff to follow during their site visits during the construction and operation and maintenance phase. Monitoring may be conducted every two weeks during the construction phase and if field inspections and monitoring reveal good environmental performance, the frequency may be reduced. Conversely, if the opposite occurs, then the matter will be reported to the Environmental Officer who will in turn direct the Contractor to take necessary mitigative measures, and monitoring frequency will be stepped up.

Table 10: Environmental Impacts and Mitigation Project Activity Potential Environmental issues Management/Mitigation Measures Responsibility Planning Supervision and Monitoring and Implementat ion Pre-construction stage Design and Impact due to location of target 1.Route selection in close consultation with Forestry staff and BPC field RED, BPC Requires ‘No Objection’ Clearance location of three villages in very remote locations staff to avoid sensitive areas; DoE from 33kV Distribution surrounded by forest on all sides 2. Route selection approved by National Environment Commission and i...Divisional Forest Office lines District Authorities ii.District Environmental Officer 3. Route should be selected so that clearance along forested areas are iii.National Environment avoided wherever possible; Where there is no alternative to routing lines Commission through forest, align routes alongside farm roads and footpaths where iv.District Administrative Approval possible, alongside forest edges where habitats are already degraded to v.Public Consensus from local an extent, and will involve minimum tree felling. residents Construction Clearing of RoW Removal of forest cover 1.Ensure that only those trees marked by the forestry staff are felled Contractor, Environmental Officer, BPC along Distribution 2.Follow standard BPC procedures and practices in clearing ROW BWS, BPC District Env. Officer NEC line 3. Explore possibility of planting low growing vegetation in RoW 4. Reforestation or afforestation to make up for forest cover loss Workers could damage species & 1.Mark RoW boundary & prohibit cutting outside; Contractor Environmental Officer, BPC Habitats outside RoW 2.Only fell trees that have been marked by Forestry staff; 3.Prohibit hunting or fishing by workers and enforce strictly; 4.Train workers in importance of wildlife and habitats; 5.Locate labour camps where no forest clearance is needed; Impact on private land holdings 1.Route the distribution lines along edge of villages Contractor Environmental Officer, BPC 2.Where routes cross private land, avoid alignments too close to houses or cutting through the centre of fields Risk of forest fires if cut 1.Leave cut material to rot down in situ and do not burn; Contractor Environmental Officer, BPC vegetation is burnt 2.Leave a covering of grass & other low vegetation in RoW; 3.Dispose of trees as required by Forestry Office Delivery of RE Air pollution from vehicular Minimize number of deliveries through timely scheduling Contractor Environmental Officer, BPC materials to drop movement off points Carriage of materials to site could Consult Gup and farmers when transporting material Contractor Environmental Officer block access Excavation at Dust may blow from cleared Avoid using large machinery, Manual excavation at pole sites and pole sites areas minimize disturbance at excavated sites,

Effect on local drainage and soil Locate poles at a minimum distance of 30 m from rivers, and construct Contractor Environmental Officer erosion these on stable ground Excavation for poles could Consult community to identify and avoid infrastructure Contractor Environmental Officer damage water pipes in villages Work in villages may create 1.Inform communities of work in advance; Contractor Environmental Officer, BPC noise, dust & impede access 2.Identify sites of local significance; locate no poles nearby; 3.Consult custodians of facilities (monasteries, nunneries, schools, clinics, etc) and avoid working at sensitive and religious times; Social and Economic benefits if local people Employ as many local residents as possible in workforce Contractor Environmental Officer, BPC cultural impacts are employed Importing foreign workers can 1. Ensure imported workers are provided with housing that has ample Contractor Environmental Officer cause environmental and social toilets, proper drainage and treatment for sewage. problems at labour camps and in 2. Collect solid waste weekly and bury offsite. host community 3. Instruct workers on required behavior in host community and prohibit them from hunting and fishing. 4. Camps must be cleaned up and restored after project is completed. Diseases can be introduced into 1.Initial screening of workers for HIV/AIDS, TB, malaria, swine flu, etc.; Contractor Environmental Officer host communities from social and 2.Facilitate access to the nearest Health facility for check up; sexual contact with imported 3.Raise worker/community awareness of risks of socially & sexually workers transmitted disease; 4.Practical measures, e.g. free condoms for workers; Workers and villagers are at risk Prepare and implement a site Health and Safety Plan that includes Contractor Environmental Officer from accidents on site measures to: -Exclude the public from all construction sites; -Ensure that workers use Personal Protective Equipment; - Provide Health & Safety Training for all personnel; - Follow documented procedures for all site activities; - Keep accident reports and records; - Inform local communities about the work and dangers Impact on private land and Conduct awareness programs/meetings BPC Environmental Officer infrastructure Grievance Redress mechanism in place

Project Activity Potential Environmental issues Management/Mitigation Measures Responsibility Operation and Maintenance Provision, People cannot use new electrical Field personnel should report power outages to the ESD and repair faults ESD BPC Operation and machines during power cuts so quickly and effectively maintenance of income may suffer new RE system Consumers are at risk of 1.Train and supervise BPC field operatives to ensure that they check RED, BPC BPC electrocution if they do not house wiring carefully and reject if deficient; 2. Public education to raise villagers’ awareness of dangers of electricity understand the dangers of and how to utilize the system safely. electricity BPC workers are at risk if they do 1.Follow BPC O&M and H&S manuals and revise these manuals if RED and BPC not follow BPC procedures when necessary to increase safety of workers; ESD, BPC 2.Regular training of BPC workers to raise awareness of dangers and clearing RoW or repairing faults working procedures to be followed; 3.Improve supervision of field workers; 4. Regular management reviews of safety record, with remedial action where necessary. People will not be very tolerant of 1.As above: repair faults quickly and effectively; RED and BPC power cuts once they become 2.Conduct system maintenance regularly and diligently ESD, BPC used to the benefits of electricity

Table 11: Environmental Management Plan

Potential impacts Mitigation measure Parameters to Location Method Monitorin Responsi Cost be monitored g bility Frequen cy Pre-construction Impact due to location of 1.Route selection in close consultation Forestry staff and BPC field EC clearance MV lines Route selection n/a RED, n/a target villages in forested staff to avoid sensitive areas; process and BPC areas 2. Route selection approved by National Environment Commission EC Clearance MV lines Field investigation n/a NEC n/a and District Authorities process by Environmental officer 3. Route should be selected so that clearance along forested areas EC clearance MV lines Mapping of field n/a RED, n/a are avoided wherever possible; Where there is no alternative to process information BPC routing lines through forest, align routes alongside farm roads and footpaths where possible, alongside forest edges where habitats are already degraded to an extent, and will involve minimum tree felling. Construction Removal of forest cover 1.Ensure that only those trees marked by the forestry staff are felled No. of MV lines Site Observations Two EO, BPC Include along RoW 2.Follow standard BPC procedures and practices in clearing ROW violations weeks d in CB Explore possibility of planting low growing vegetation in RoW Revegetation MV lines Site Observations Two EO, BPC n/a of RoW weeks Workers could damage 1.Mark RoW boundary & prohibit cutting outside; No. of MV lines Site Observations Two EO, BPC n/a species & Habitats 2.Only fell trees that have been marked by Forestry staff; violations weeks outside RoW 3.Prohibit hunting or fishing by workers and enforce strictly Number of Camp sites Site Observation Monthly EO, BPC n/a illegal reports Surveys 4.Train workers in importance of wildlife and habitats; Number of Labour camps Contractor records Monthly EO, BPC Include illegal reports d in CB 5.Locate labor camps where no forest clearance is needed; Location of Labour camps Site observations Monthly EO, BPC Include camps d in CB 6.Provide adequate food supply so workers do not need to hunt or Illegal activities Labour camps Site observations Monthly EO, BPC Include fish d in CB Impact on private land Route feeders along edge of villages, avoid locating poles in the Feeder MV lines Site observations Monthly EO,BPC n/a holdings centres of fields alignment Risk of forest fires if cut Leave cut material to rot down in situ and do not burn; No. Of fires MV lines Site observations Two EO, BPC n/a vegetation is burnt Leave a covering of grass & other low vegetation in RoW; weeks Dispose of trees as required by NRDCL or Department of Forest; Disposal of MV lines Site observations Two EO, BPC Include trees weeks d in CB

Delivery of RE materials Minimize number of deliveries through timely scheduling No. Of Drop off Site observations Monthly EO, BPC n/a to drop off points- Air deliveries points pollution from vehicular movement Carriage of materials to Consult Gup and farmers when transporting material No. Of MV and LV Site observations; Monthly EO, BPC n/a site could block access consultations lines Village survey Excavation at pole sites- Avoid using large machinery, Manual excavation at pole sites and Site MV lines Site observations Monthly EO, BPC n/a Dust may blow from minimize disturbance at excavated sites, observations cleared areas Effect on local drainage Locate poles at a minimum distance of 30 m from rivers, and MV lines Site observations Monthly EO, BPC n/a and soil erosion construct these on stable ground Excavation for poles could Consult community to identify and avoid infrastructure No. Of MV and LV Site observations; Monthly EO, BPC n/a damage water pipes in consultations lines Village survey villages Work in villages may 1.Inform communities of work in advance; MV and LV Site observations; Monthly EO, BPC n/a create noise, dust & lines Village survey impede access 2.Identify sites of local significance; locate no poles nearby; MV and LV Site observations; Monthly EO, BPC n/a lines Village survey 3.Consult custodians of facilities (monasteries, nunneries, schools, MV and LV Site observations; Monthly EO, BPC n/a clinics, etc) and avoid working at sensitive and religious times; lines village survey Economic benefits if local Employ as many local residents as possible in workforce No. of locals All sites Site observations; Monthly EO, BPC n/a people are employed in employed worker survey Contractor’s workforce Importing foreign workers 1. Ensure imported workers are provided with housing that has ample No. of All sites Site observations; Monthly EO, BPC Include can cause environmental toilets, proper drainage and treatment for sewage. Observations worker survey d in CB and social problems at 2. Collect solid waste weekly and bury offsite. from camp site All sites Site observations Monthly EO, BPC labor camps and in host community 3. Instruct workers on required behavior in host community and All sites Site observations; Monthly EO, BPC prohibit them from hunting and fishing. worker survey 4. Camps must be cleaned up and restored after project is completed. Labour camps Site observations; Monthly EO, BPC worker survey Diseases can be 1.Initial screening of workers for HIV/AIDS, TB, malaria, swine flu, Contractors Labour camps Site observations; Monthly EO, BPC Include introduced into host etc.; record on worker survey d in CB communities from social 2.Facilitate access to the nearest Health facility for check up; Health issues Labour camps Site observations; Monthly EO, BPC and sexual contact with worker survey imported workers 3.Raise worker/community awareness of risks of socially & sexually Labour camps Site observations; Monthly EO, BPC transmitted disease; worker survey 4.Practical measures, e.g. free condoms for workers; Labour camps Site observations; Monthly EO, BPC worker survey

Workers and villagers are Implement Health and Safety Plan that includes measures to: Health and Labour camps Site observations Monthly EO, BPC at risk from accidents on -Exclude the public from all construction sites; safety mgt.plan site -Ensure that workers use Personal Protective Equipment; - Provide Health & Safety Training for all personnel; - Follow documented procedures for all site activities; - Keep accident reports and records; - Inform local communities about the work and dangers Operation and Maintenance Provision, Operation and Field personnel should report power outages to the ESD and repair # reports and MV and LV Reports Monthly EO, BPC faults quickly and effectively repairs maintenance of new RE lines observations system 1.Train and supervise BPC field operatives to ensure that they check Training and All sites Reports Monthly EO, BPC house wiring carefully and reject if deficient; awareness 2. Public education to raise villagers’ awareness of dangers of Reports Observations electricity and how to utilize the system safely. 1.Follow BPC O&M and H&S manuals and revise these manuals if # trainings and All sites Reports Monthly EO, BPC necessary to increase safety of workers; supervision Observations 2.Regular training of BPC workers to raise awareness of dangers and reports working procedures to be followed; 3.Improve supervision of field workers; 4. Regular management reviews of safety record, with remedial action where necessary. 1.As above: repair faults quickly and effectively; # Repair and All sites Reports Monthly EO, BPC 2.Conduct system maintenance regularly and diligently maintenance reports Observations

ESD: Electricity Supply Division, Samdrup Jongkhar, RED: Rural Electrification Division, BPC, EO- Environmental officer

C. Institutional Arrangement

208. The subproject will be managed and implemented within the institutional framework that already exists in Bhutan for the provision of rural electrification services. The main agencies and their roles will be as follows:

 DoE is the Executing Agency (EA) responsible for management, coordination and execution of all activities funded under the loan.

 BPC is the Implementing Agency (IA), responsible for the successful construction and subsequent operation of all the RE subprojects. BPC is the Implementing Agency (IA), responsible for the successful construction and subsequent operation of all the RE subprojects. Implementation will be managed by the Rural Electrification Department (RED), headed by a General Manager in the Head Office and other Senior Managers in the Divisions.

 RED will coordinate construction of subprojects across all Dzongkhags, and ensure consistency of approach and performance. They will appoint Construction Contractors (CC) to build elements of the infrastructure in a particular Dzongkhag.

 Local implementation will be managed by the field offices of the RED in each of the target Dzongkhags, who will supervise the Construction Contractors, and will be responsible for quality control, contract supervision, monitoring and reporting, etc.

 Environmental issues will be coordinated by the BPC Environmental Unit, who will ensure that all subprojects comply with national environmental safeguards. The Environmental Monitoring Plan (EMP) involves observations and surveys to be conducted during construction and operation to ensure that mitigation measures are provided and that they protect the environment as intended. Construction monitoring will be conducted by RED field offices, and monitoring during operation will be co-ordinated by Distribution and Customer Services Department (DCSD), BPC.

D. Environmental Management and Monitoring Costs

209. Most of the mitigation measures require the contractors to adopt good site practice, which should be part of their normal procedures already, so there are unlikely to be major costs associated with compliance. Costs of mitigation by the contractors are included in the budgets for the civil works and do not need to be estimated separately here.

210. Mitigation that is the responsibility of BPC should be included as part of their management of the project. Environmental monitoring during construction must be conducted by BPC Environmental Officers, and budget is required for their travel. Customer satisfaction must be gauged and for this survey expenses may be incurred. There may also be unforeseen mitigation measures that may arise. The costs of these are shown in the following Table. The figures show that the total cost of environmental management and monitoring for the subproject as a whole (covering design, construction and operation) is Nu.6, 89,800.00

Table 12: Cost of implementing EMP and monitoring

Activity Quantity Unit Cost Total Cost Source of (Nu.) Fund A Design phase Use of Covered conductors and reflectors To be ascertained To be To be Project ascertained ascertained B Construction phase Monitoring by Environmental Officer from BPC once every quarter 1person x 2 weeks * 4 14000 56000 Project 1 times Monitoring by project field staff every month 1personx1week * 12 4900 58,800 Project 2 times 3 Conducting awareness among public in each gewog 5 gewogs 15,000 75,000 Project 4 Capacity building and training for stakeholders & staff 1,00,000 1,00,000 Project 5 Compensation costs (social) 0 0 Project 6 Afforestation/Reforestation by E & GIS Div. 5,00,000 5,00,000 C Operation phase Unforeseen environmental impacts will be covered from project contingency cost Total 689,800.00 Assumptions:

-Construction works will be completed within one year of commencement -DSA rates for government officers/staff is as per prevailing rate -Environmental Division has adequate staff to cover all project sites

X. CONCLUSION AND RECOMMENDATION

A. Project Findings

211. The process described in this document has assessed the environmental impacts of all elements of the infrastructure proposed under the Rural Electrification Subproject. The findings of the assessment are as follows;

212. The primary positive impact of the project will be access to electricity for lighting, cooking and heating for individual households and religious institutions. At the same time the availability of an electricity supply should bring significant economic benefits to the rural communities, because:  There can be significant improvements in the health and lifestyle of local people through the use of clean technology and reduction of exposure to smoke from use of fuel wood and kerosene, and other health risks.  People will have more time available for work as they will not have to spend time for fuel wood permit, cutting and carrying firewood  People no longer have to purchase kerosene from the nearest town which is 2 days walk from the villages;  People will be able to use electrically powered machinery to process their farm products or to offer services to the community(e.g. rice mills), so again incomes should increase;  People will also be able to work and provide services during the evening because of the greater availability of lighting,  Individuals may be employed by the project during the construction period as porters or for clearing of RoW.

213. The major ecological benefit will occur over the longer term, as the availability of electricity in these villages reduces the felling of trees for firewood. Current estimates are that each rural household in Bhutan consumes around 3.5 kg of firewood per person per day9, so these ecological gains should become highly significant over time.

214. Potential negative impacts were identified in relation to design, construction and operation of the improved infrastructure. The impact on the forest cover as stated previously is unavoidable as environmental impacts would not occur if the target villages were not selected and MV lines could have been routed through un-forested areas to these villages

215. The assessment did not consider that there would be any significant impacts due to the project design or location or construction and operation. Mitigation measures have been developed to reduce all negative impacts to acceptable levels. These were discussed with specialists responsible for the engineering aspects, and as a result some measures have already been included in the outline designs for the infrastructure. These include:  Routing MV lines along existing access routes and footpaths where possible, where the forest has already been partially cleared, thus reducing the felling of new trees as well as reducing the need to acquire private land;

9 FAO (2001): National Strategy for Stoves and Other Alternative Energies, Project No BHU/99/005 63

 Selection of MV line routes in close consultation with the Department of Forest and approved by the National Environment Commission after conducting field verification of alignments.  Public consultation to seek consensus of the affected households to construct poles on their land and to raise awareness of the project activities

216. Thus the planning process has already identified potential impacts and reduced their significance has already been reduced by amending the design and route alignment.

217. Regardless of these and various other actions taken during the IEE process and in developing the project, there will still be impacts on the environment when the infrastructure is built and when it is operating. This is mainly because most of the target villages are located in forested areas, so there will need to be some felling of trees along the MV lines and because of the dangers for workers and consumers that are inherent in maintaining or using an electricity supply system. Because of these factors the most significant impacts are on ecology and people.

218. During the construction phase, the main impacts mainly arise from the need to clear a 12 m right of way where MV lines pass through forested areas (to prevent shorting from branches touching bare conductors), and from the need to import foreign workers (which could lead to social and environmental problems in accommodation camps and neighbouring communities). These are common aspects of projects to provide rural electrification in remote areas (including Bhutan), and there are well developed methods for their mitigation. There were however no significant rare or endangered species sighted along the distribution line and discussions with the local people also revealed that there are no sensitive species in the project area. Most potential negative impacts identified were not considered significant because these are limited to the construction phase which is short in duration and due to the localised nature of impacts.

219. Although there will be areas where MV lines cross agricultural areas and private land, there will be no need to procure land as areas required are so small (ca 0.5 m2 each) and dispersed, so it is unlikely that a significant proportion of the land of any one owner will be acquired. The grievance redress mechanism will be constituted to take care in case of grievances against the project.

220. As many of the target villages are remote, isolated and not easily accessible; most of the environmental impacts are common across RE projects elsewhere in the country. Thus, BPC already has developed much experience in executing similar projects like these.

221. In order to ensure that environmental impacts are minimized as much as possible, mitigation measures have been proposed. Mitigation will be assured by a programme of environmental monitoring conducted during both construction and operation to ensure that all measures are provided as intended, and to determine whether the environment is protected as envisaged. This will include site observations, document checks, and interviews with workers and beneficiaries, and any requirements for remedial action will be reported to BPC. There will also be surveys to monitor the long-term benefits of the scheme and the adequacy of the service, and identify any deficiencies.

B. Recommendations

222. Recommendations to improve the project and reduce potential environmental impacts are;  All mitigation and enhancement measures as well as the Environmental Monitoring Plan proposed in this report should be implemented in full; and  The Contractor, BPC and Department of Forest must work closely during the construction phase just to minimize environmental impacts as much as possible.

C. Conclusion

223. The environmental impacts of the proposed improvements in rural electrification infrastructure in Samdrup Jongkhar dzongkhag have been assessed by the Initial Environmental Examination reported in this document, conducted according to ADB guidelines.

224. A key element of the national Environmental Clearance application process is the provision of signed No Objection Certificates (NOC) from stakeholders that are specified in the guidelines, including all affected households, Department of Forest, and other relevant Government Agencies (Dept of Culture, Nature Conservation Division, etc). NEC will not consider an EC application that does not contain the necessary NOC, and Forestry Clearance for example is not granted by DoF until a forestry official has surveyed the whole length of any proposed route and has physically marked those trees that may be felled to create the RoW.

225. Once the Environmental assessment has been conducted and the application submitted to the NEC, the District Environmental Officer in collaboration with BPC and Park again revisit the proposed sites to confirm the proposed alignment and ensure that the least environmentally disruptive routes have been selected. This elaborate process of revisiting the proposed sites by different agencies ensures that all possible options have been explored, the environmental impacts of the proposed improvements in rural electrification infrastructure have been assessed and the and the most suitable one adopted.

226. Thus the overall conclusion of this process is that provided the mitigation measures are implemented in full, there should be no significant negative environmental impacts as a result of location, design, construction or operation of the subproject. There should in fact be some small benefits from recommended mitigation and enhancement measures, and major improvements in quality of life once the scheme is in operation.

XI. REFERENCES

Bhargava, O.N (ed.). (1995). The Bhutan Himalaya: A geological account. Special publication 39. Geological Survey of India.

BPC. (2007). BPC monthly System Performance Reports of ESD

DGM (2002). Geology of Bhutan, Department of Geology and Mines, Ministry of Trade and Industry

DoE. (2007). Climatic data (Meteorology Division)

DoF. (1974). National Forest Policy 1974, Royal Government of Bhutan

DoF. (2002). Forestry in Bhutan, Facts and Figures 2002. Department of Forestry Services, MoA

DoF. (2007). “Rules on Biological Corridors” as an addendum to the Forest and Nature Conservation Rules 2006. MoA. RGOB

Geological Survey of India (1995). The Bhutan Himalaya: A Geological Account. Bhargava. O.N. (ed). Special publication 39. Geological Survey of India.

GNHC (2009): Tenth Five Year Plan 2008-2013. Gross National Happiness Commission. Royal Government of Bhutan

MoA. (1997). Atlas of Bhutan, Land cover & Area Statistics of 20 Dzongkhags, Land Use Planning Project. 1994. Ministry of Agriculture, Thimphu, Bhutan, RGOB.

MoA. (1997). Biodiversity Action Plan for Bhutan, Ministry of Agriculture, RGOB

MoA. (2002). Biodiversity Action Plan for Bhutan. 2002. Ministry of Agriculture, Royal Government of Bhutan

MoE. (2007). General Statistics, Policy and Planning Division, Ministry of Education, Royal Government of Bhutan

MoHCA .(2006). National Disaster Risk Management Framework. Reducing Disaster Risks for a Safe and Happy Bhutan. Disaster Management Division. Department of Local Governance. Ministry of Home and Cultural Affairs. Royal Government of Bhutan.

MoP. (1997). 9th FYP document, (2002-2007), Ministry of Planning, RGOB

MoWHS. (2006). Annual Information Bulletin, PPD, Ministry of Works and Human Settlement, RGOB

MPFD. (1991). Master Plan for Forestry Development, Main Report. 1991. Ministry of Agriculture, Department of Forestry, Royal Government of Bhutan.

Namgay, K. (2005). Biodiversity Conservation and Protected Area system in Bhutan, pp 129- 133, in People and Protected Areas in South Asia. Uday.R.Sharma and Pralad. B. Yonzon. IUCN World Commission on Protected Areas

National Statistical Bureau. (2004). Statistical yearbook of Bhutan, 2004. National Statistical Bureau, RGOB

National Statistical Bureau. (2007). Statistical yearbook of Bhutan, 2007. National Statistical Bureau, RGOB

NCD. (2001). Bumdeling Wildlife Sanctuary: Conservation Management Plan July 2001-June 2007. Nature Conservation Division. Department of Forestry Services. MoA, RGOB

NCD. (2004). Bhutan Biological Conservation Complex (Living in Harmony with the Nature). A Landscape Conservation Plan: a way forward. Nature Conservation Division, DoFS, MoA

NEC (2000). Environmental Assessment Act, 2000. National Environment Commission. Royal Government of Bhutan

NEC. (2002). Regulation on Strategic Environmental Assessment, 2002, NEC, Royal Government of Bhutan

Norbu, C; Baillie, I; Dorji, T; Tamang, H.B; Tshering, K and Hutcheon, A. (2003). A provisional physiographic zonation of Bhutan. Journal of Bhutan Studies. 54.

REMP. (2004). Rural Electrification Master Plan, Japan International Corporation Agency (JICA)

RGOB. (1995). Forest and Nature Conservation Act of Bhutan. Royal Government of Bhutan

RGOB. (2001). Electricity Act of Bhutan, Royal Government of Bhutan

RGOB. (2002). GYT (Gewog Yargay Tshogdue) Act. Royal Government of Bhutan

RGOB. (2005). Population and Housing Census of Bhutan, 2005. Office of the Census Commissioner, Royal Government of Bhutan

RGOB. (2006). Forest and Nature Conservation Rules 2006 DoF. Royal Government of Bhutan

Special Commission (2007). List of Monasteries in Bhutan, Special Commission

ANNEXURES Annex 1: List of species found in project area Table 1.1: Flora recorded from project sites during field surveys for this project Aconogonum molle Caesalpinia spp. Eurya acuminata Mimosa pudica Acacia catechu Canarium sikkimensis Eurya cerasifolia Morus macroura Albizia lebbeck Carpinus viminea Exbucklandia populnea Mussaenda roxburghii Alnus nepalensis Cassia fistula Ficus.pubigera Murraya koenigii Alstonia scholaris Castanopsis indica Ficus.religiosa Musa balbisiana Altingia excelsa Castanopsis hystrix Ficus.semicordata Oroxylon indicum Angiopteris lygodiifolia Chirita Spp. Ficus.virens Pandanus nepalensis Aquilaria agallocha Cinnamomum glanduliferum Grewia.eriocarpa Parasassafras confertiflora Aquilaria malaccensis Cinnamomum tamala Girardinia Spp. Persea clarkeana Ardisia macrocarpa Colocasia fallax Gmelina arborea Pinus roxburghii Arisaema spp. Coriaria napalensis Hedychium spicatum Phoebe lanceolata Artemisia vulgaris Cornus longa Hedyotis Spp. Piper nigrum Artocarpus chama Corida obliqua Hydrangea anomala Prunus cerasoides Artocarpus heterophylla Dendrocalamus hookeri Hydrangea aspera Pterospermum acerifolium Arundinaria Spp. Debregeasia longifolia Indigofera spp. Quercus lamellosa Acrocarpus fraxinifolius Dendrocalamus hamiltonii Juglan regia Quercus semicarpifolia Ailanthus grandis Dillenia pentagyna Lindera neesiana Rubia manjith Alangium chinense Dioscorea bulbifera Lindera pulcherrima Rhododendron Bauhinia purpurea Diplocknama butareace Lithocarpus elegans Rhus simialata Bauhinia retusa Dalbergia pinnata Litsea salicifolia Rubus niveus Bridelia sikkimensis Duabanga grandiflora Lyonia ovalifolia Rhapidophora eximea Bauhinia variegata Daphne bholua Lindera cubeba Schima wallichii Boehmeria spp. Elatostema lineolatum Litsea monopetala Solanum khasianum Bambusa arundinacea Elaeocarpus.lanceifolius Macaranga denticulata Solanum torvum Benthamidia capitata Elettaria cardamomum Macaranga peltata Sterculia villosa Bombax ceiba Engelhardia spicata Mallotus philippinensis Saurauja spp. Bischofia javanica Erythrina arborescens Melia azedarach Sterospermum personatum Brassaiopsis mitis Eupatorium adenophorum Michelia champaca Shorea robusta Callicarpa arborea Eupatorium odoratum Maesa spp. Tetrameles nudiflora Thunbergia Tectona gradis Terminalia myriocarpa Trema politora Talauma hodgsonii Terminalai belerica Terminalia alata Trema tomentosa Tamarindicus indicus Terminalia chebula Thysanolaena maxima Trevesia palmata Zizyphus spp. Zanthoxylum bungeanum Urtica ardens Ulmus lanceifolia

Table 1.2: Fauna known to occur in Project sites

No. Common Name Scientific Name 1 Asian Elephant Elaphus maximus 2 Clouded Leopard Neofelis nebulosa 3 Gaur Bos gaurus 4 Leopard Panthera pardus 5 Leopard Cat Prionailurus bengalensis 6 Himalayan Black Bear Ursus thibetanus 7 Serow Capricornis sumatraensis 8 Wild pig Sus scrofa 9 Wild dog Cuon alpinus 10 Barking deer Muntiacus muntjak 11 Sambar Cervus unicolor 12 Goral Naemorhedus goral 13 Indian porcupine Hysterix indica 14 Capped langur Trachypithecus pileatus 15 Assamese macaque Macaca assamensis

Table 1.3: Avifauna recorded in Project sites

Common Name Scientific Name 1 Ashy Bulbul Hemixos flavala 2 Ashy Drongo Dicrurus leucophaeus 3 Ashy Woodswallow Artamus fuscus 4 Ashy-throated Warbler Phylloscopus maculipennis 5 Asian Brown Flycatcher Muscicapa dauurica 6 Asian Emerald Cuckoo Chrysococcyx maculatus 7 Asian House Martin Delichon dasypus 8 Black Bulbul Hypsipetes leucocephalus 9 Black Drongo Dicrurus macrocercus 10 Bronzed Drongo Dicrurus aeneus 11 Brown Dipper Cinclus pallasii 12 Brown Shrike Lanius cristatus 13 Common kestrel Falco tinnunculus 14 Common Stonechat Saxicola torquata 15 Crested Bunting Melophus lathami 16 Darjeeling woodpecker Dendrocopos darjellensis 17 Emerald Dove Chalcophaps indica 18 Eurasian Cuckoo Cuculus canorus 19 Eurasian Tree Sparrow Passer montanus 20 Fire-tailed Sunbird Aethopyga ignicauda 21 Fork-tailed Swift Apus pacificus 22 Fulvous-breasted Woodpecker Dendrocopos macei 23 Golden Bush Robin Tarsiger chrysaeus 24 Great Barbet Megalaima virens 25 Great Cormorant Phalacrocorax carbo 26 Great Hornbill Buceros bicornis 27 Green Shrike Babbler Pteruthius xanthochlorus 28 Grey Bushchat Saxicola ferrea 29 Grey Nightjar Caprimulgus indicus 30 Grey Wagtail Motacilla cinerea 31 Hill partridge Arborophila torqueola 32 Hill Prinia Prinia atrogularis 33 Himalayan Swiftlet Collocalia brevirostris 34 House Crow Corvus splendens 35 House Sparrow Passer domesticus 36 House Swift Apus affinis 37 Jungle Myna Acridotheres fuscus 38 Kalij Pheasant Lophura leucomelanos 39 Large Hawk Cuckoo Hierococcyx sparverioides 40 Large Niltava Niltava grandis 41 Large Woodshrike Tephrodornis gularis 42 Large-billed Crow Corvus macrorhynchos 43 Lesser Cuckoo Cuculus poliocephalus 44 Little Egret Egretta garzetta 45 Little Forktail Enicurus scouleri

Annex 2: Summary of Public Consultation

Two public consultations were held at Lauri and Martshala gewog on the 13th and 23rd of June, 2009. Being the cropping season, most households were busy with varied tasks and thus the meeting was held in the evening. The meeting was attended by residents Phaju Goenpa (22 participants), for the first meeting and by residents of Martshala for the second meeting (9 participants). The meeting was held as per the following agenda;

Introduction. The introduced the consultant and explained the purpose of the meeting to the participants. Following this the consultant introduced the project, its objectives and how the target villages were included under this project.

EIA and Public consultation. An explanation on the Protected Area Conservation Policy and Environmental Assessment procedures was given. It was explained that an Environmental Clearance process is required to be followed for all new development projects. Depending on the location, size and nature of the project, proposed activities are categorized by the NEC and accordingly Environmental Clearance Procedures have to be followed. Since the distribution line from Trephu to Khashitheng crosses a biological corridor and Khashitheng village itself lies in the buffer of the Sakteng Wildlife Sanctuary, an Environmental Impact Assessment was being conducted to determine the nature of the impacts that would arise from the proposed project. The assessment looked at social, cultural/religious, environmental and economic considerations and also involved conducting a public consultation to seek the views of all stakeholders involved and incorporate any concerns.

Social considerations. It was explained that during the feasibility survey, it is very important that all the community members were aware that such field assessment was going on. The distribution line will be passing through different types of land use (Tsamdro, sokshing, pangshing and kamshing) and therefore a representative from the village was required to accompany the route surveyor to provide accurate information on land tenure and use. This would allow the route surveyor to determine the percentage of the line falling under such categories. Since the route surveyor is not a resident, a representative will be in a better position to ensure that encroachment on private land is minimized.

Cultural and Religious consideration. Since most villages have either a Lhakhang, Goenpa, Neys and Lu’s, which the surveyors are not aware of, the Tshogpa or community representative, should point out the location of these sites so that the MV line can be rerouted to avoid these.

Environmental consideration. It was explained that Bhutan is renowned for environmental conservation and therefore when donors are willing to pay for development projects, they are equally concerned that the environmental concerns are given due consideration. At the same time Environmental Conservation is one of the four pillars of Gross National Happiness and it is within the Forest Policy to maintain at least 60% forest cover at all times. In terms of forest cover, the RoW depends on the voltage of the distribution line. For 33kV, the RoW is 12m while for 11kV the RoW is 10m. People were reminded that this may not amount to much when calculated at the gewog level, but when calculated over the entire country it was quite substantial. Also, the forest provides critical habitat to many endangered species and loss of forest cover would in turn negatively impact these inhabitants.

Economic consideration. The process and the criteria used for selecting villages for inclusion in the 10th FYP were explained in detail. It was clarified that villages that were too far, very isolated and few in number were not included for on-grid electrification and will be included

71 under Solar Energy Program. The very remote location of such individual houses required very lengthy distribution lines which were not techno-economically feasible and very expensive for the government.

Public consensus. In order to seek the consensus of all affected households, the BPC was seeking public consensus from all households in the target villages. Through the Dzongkhag and Gup, individual households are asked to sign a public consensus form, basically a “No Objection” statement allowing the BPC to construct poles on their land and align the distribution line through their private land. In many areas, the Gup convened meetings to inform all households and the Tsogpa’s collected the signatures. Also, in case of absentee owners, it is the responsibility of the Gup and Tsogpa to inform them. It is crucial to ensure that all affected households are informed and sign the consensus forms so that no issues from absentee owners will arise in the future.

BPC Policy. According to the BPC policy, an individual household is fully responsible for incurring the financial cost of removal or shifting of distribution line and poles if the household wants these to be removed or placed elsewhere once the distribution line is already constructed. Therefore, to avoid such problems or disputes in the future, any changes to be made to the alignment should be incorporated during the planning stage

Aesthetics. The importance of aesthetics was also explained to the participants, especially in view of Lhakhangs, Neys etc.

Environmental impacts. The positive impacts as well as the negative impacts of rural electrification was also highlighted and discussed. The village Tshogpa was asked to be actively involved during workers’ campsite selection and to raise awareness with contractors and workers on sanitation, waste generation and illegal activities such as poaching or felling of trees.

Clean Development Mechanism. The participants were informed that Bhutan is a member of a number of International Conventions, many of them related to environment and conservation because of our environmental legacy. As a member of one of the protocols, the Kyoto Protocol, the Country is interested to earn take advantage of the Clean Development Mechanism (CDM), which a mechanism in which Bhutan can earn credits for reducing Carbon emission.

Participant views. The participants were asked for their views on the project and their comments were solicited.

Summary of Discussions. Endorsement of the Project. The participants said that they were very happy that the project was finally coming through. There had been meetings in the past but they were not sure whether the project was really coming through. Villagers of Saytsalo were also very happy that they too are going to get electricity. Villagers of Martshala Gewog are extremely happy with the availability of the electricity and their standard of living has improved drastically. And for this the people of Martshala Gewog are really grateful to the king and the government of Bhutan.

Location and administrative jurisdiction. The participants explained that although the two villages are very close to each other, they actually fall under different Dzongkhags, Khashitheng under Trashigang, and Phaju Goenpa under Samdrup Jongkhar and hence all administrative procedures have to be followed through two different dzongkhags. Administratively Khashitheng

72 village falls under the jurisdiction of Sakteng Wildlife Sanctuary as it falls near the PA boundary and residents are bound by PA regulations. A river separates the two villages so Phaju Goenpa falls under the jurisdiction of the Divisional Forest Office in Samdrup Jongkhar. It is due to this, that the two villages also do not enjoy the same benefits from their dzongkhags. For instance, Khashitheng residents have been given solar systems but just across the river Phaju Goenpa residents were living in darkness.

Use of solar panels. The residents of Khashitheng were infact given solar systems twice, but it was found that not many were using them. Residents said that the panels were too old and the bulbs keep getting spoilt. The closest market for the bulbs is Tintali, a small town located along the India/Bhutan border, 2 days walk from the village. There is also no facility to repair the defective systems so they remain disused.

Electrification and Public consultation. The participants said that a few months ago staff from BPC had come for the route survey and also conducted similar meetings in two villages, in Phaju Goenpa and at Trephu. At that time, residents split up and attended the meeting in one of the two villages. During that meeting the community had requested BPC to include them in the electrification program and participants said that they were very happy to know about the positive development towards the fulfillment of their request. They hoped that the funds will be received soon and the project can be initiated as soon as possible. As much of the topics were similar to the previous meeting with BPC staff, the participants did not have any queries and felt that the project will benefit all of them even though some may be affected at the individual level. Since it was for the greater good of the community, they are willing to make few sacrifices.

Alignment of the distribution line. The consultant explained that the BPC were exploring two options for the route alignment. One was from Trephu to Khashitheng while the other was from Diafam. Right now electricity has been provided till Jampa, a little above the dungkhag office. Along the alignment from Trephu to Khashitheng there were no villages and the distribution line was very long, passing through pasture land and forest area. Although there may be some environmental impact, the villagers felt that this may be a better route than the alternative from Diafam. The reason for choosing this over the Diafam alignment is because the route from Diafam northwards will have to pass through many landslide prone areas and unstable hill slopes. Also, there are no permanent bridges and the heavy rain during summers usually washes away the foot trails and access routes. There is currently a farm road being constructed till Tokaphu but due to unstable and huge rocky slopes, and the heavy rains, the construction has also been delayed. Since the distribution line from the south will have to pass through India, it may be risky as well as unreliable especially if and when there are strikes along the border areas.

Benefits of the project. The participants said that they generally use approximately 2 truckloads of fuel wood per year. In khashitheng, households can seek permit for 1 tree each year for firewood, but can collect any amount of dry wood without permit. Approximately 20 liters of kerosene is used in a year which does not amount to much but has to be transported from the border town where all the supplies are purchased. Currently water mills are used for grinding maize but with electrification, the owners may switch to electricity. Other benefits that the participants articulated included conservation of forest areas around the village through a reduction in tree felling. In and around the villages, farmers will be better able to protect their crops as well as livestock through improved sight/visibility at night. Households can also live in cleaner surroundings. Currently most of them cook inside the house and the smoke from the

73 fireplace makes the house very dirty as well as smoky creating an unhealthy atmosphere for children, especially as their houses are not very large and gets filled with smoke easily. Due to the remote location and lack of facilities there are opportunities of improving their livelihood. There were 15 households that lived at Khashitheng previously but now there are only 9 households as 6 have resettled elsewhere due to the harsh living conditions and lack of adequate land for farming.

Participants at the Meeting in Martshala especially those from Saytsalo hope to get an opportunity to experience the benefits of electricity. Some of the benefits of electricity that were pointed out include;  Reduction of their dependence on fuel wood and kerosene, which would in turn help the villagers to live in a healthy and clean environment.  Improvements in living standards and possibilities to generate more income by weaving late at night or focus on other activities during the evenings.  Women can cook more easily and faster by using rice cooker, curry cooker, boiler, refrigerator, etc.

The only negative impact which is worrying to some villagers is the risk of electrocution. This is because they do not know how to handle electrical gadgets and connections.

The Consultant informed the meeting that the Forestry clearance had already been granted by the park but the alignment was currently under review for technical and economic feasibility. Thus it is not clear whether the line would be tapped from the north (Trephu) or the South (Diafam). The participants said that they were happy that such isolated and remote villages like theirs were being considered for electrification and expressed their gratitude to the government as well as the donors for this initiative. They said they had no issues or concerns about the project and all of them have already signed the public consensus forms giving their consent to the project.

Hire of workers. During the meeting in Martshala, the participants said that previously for RE project villagers, residents were hired to install the distribution line on a contract basis but they had a number of problems with timely payments by contractors. Since the residents did not have a written agreement, it was difficult for them to take the contractors to court. Therefore, residents requested that the contract should be given only to those deserving contractors who will be kind and generous to the people.

Samdrup Jongkhar Participant list

No. Name Phaju Goenpa meeting 1 Yankey Zomba 2 Tshewang Gemo 3 Jigme Yozer 4 Dhendup 5 Thinley Wangdi 6 Phuntso Wangmo 7 Sonam Choden 8 Ngawang Dorji 9 Tenzing Dorji 10 Tashi Tshering 11 Jurmi Tsheltrim 12 Choki Dorji 13 Nima Yozer 14 Kinley Gyeltshen 15 Chenga Dorji 16 Sangay Khandu 17 Tobgay 18 Tshering Lhaden 19 Pema Tshering 20 Tshering Dorji 21 Sangay Phuntso 22 Rinchen Dawa

Martshala meeting 23 Tenpa Gyeltshen 24 Homjay 25 Tendey Tshewa 26 Changlopay 27 Tampay 28 Wangchuk 29 Dawa Norbu 30 Tshitrim Zangmo 31 Tendey Zanpo

Annex 3: Photos from project sites

Photo 1: Target villages in Lauri gewog Photo 2: Shingkhar Lauri

Photo 3: Pit latrine outside house Photo 4:Broadleaf forest along alignment

Photo 5: one of the few shops in the village Photo 6: Community school

Photo 7: Farmroad to village- Diafam Photo 8: Villages in Lauri

Photo 9: Diafam town Photo 10: Suspension bridge and mule tracks

Photo 11: Religious stupas are quite common Photo 12: Donkeys- common means of transportation

Photo 13: Basic Health Unit Photo 14: RNR centre

Photo 15: Samdrup Jongkhar Dzong Photo 16: Deothang town, one of the larger towns

Photo 17: Public consultation

Annex 4: Sample copy of MOU between BPC and individual households

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Map 1/7: Proposed Distribution lines under this sub-project

Map 2/7: Proposed Distribution lines under this sub-project

Map 3/7: Proposed Distribution lines under this sub-project

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i Forest and Nature Conservation Act, 1995, RGOB