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Greater Mekong Subregion East-West Economic Corridor Towns Development Project: Kaysone Phomvihane, Phine, and Dansavanh Initial

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Greater Mekong Subregion East-West Economic Corridor Towns Development Project: Kaysone Phomvihane, Phine, and Dansavanh Initial Initial Environmental Examination October 2017 Lao PDR: Greater Mekong Subregion East-West Economic Corridor Towns Development Project Prepared by the Provincial Department of Public Works and Transport, Savannakhet Province, Lao PDR for the Asian Development Bank. This is an updated version of the document originally posted in July 2012 available on https://www.adb.org/sites/default/files/project- document/73477/43319-022-lao-iee-01.pdf 1 CURRENCY EQUIVALENTS (as of 13 March 2017; http://www.bol.gov.la/english/index1.php) Currency unit – kip (LAK) LAK1.00 = $0.00012 $1.00 = LAK8,200 ABBREVIATIONS AH – Affected Household AP – Affected People CTDP – Corridor Towns Development Project DBTZA – Dansavanh Border Trade Zone Authority DED – Detailed Engineering Design DoF – Department of Forestry DPRA – Development Project Responsible Agency DPWT – District Public Works and Transport Office DNREO – District Natural Resource and Environment Office EA – Environmental Assessment EIA – Environmental Impact Assessment ECA – Environmental Compliance Audit ECC – Environmental Compliance Certificate ECO – Environmental Control Officer EMP – Environmental Management Plan EMMU – Environment Management and Monitoring Unit ESD – Environment and Social Division ESIA – Environment and Social Impact Assessment ESO – Environmental Site Officer EA – Executing Agency EWEC – East-West Economic Corridor FDI – Foreign Direct Investment FGD – Focus Group Discussion FS – Forest Strategy FYSEDP – Five Year Socio Economic Development Plan GDP – Gross Domestic Product GMS – Greater Mekong Subregion GoL – Government of Lao PDR IA – Implementing Agency IEE – Initial Environmental Examination IUCN – International Union for Conservation of Nature IWRM – Integrated Water Resource Management Lao PDR – Lao People’s Democratic Republic LFA – Land and Forest Allocation LFNC - Lao Front for National Consolidation LWU – Lao Women Union MAF – Ministry of Agriculture and Forestry MAF – Ministry of Agriculture and Forestry MIC – Ministry of Information and Culture MIH – Ministry of Industry and Handicraft MoU – Memorandum of Understanding MoF – Ministry of Financial MONRE – Ministry of Natural Resources and Environment MPCTC – Ministry of Post, Construction, Transport and Communication MPWT – Ministry of Public Works and Transport MPI – Ministry of Planning and Investment MRF – Materials Recovery Facilities MRC – Mekong River Commission NAPA – National Adaptation Plan of Action NBSAP – National Biodiversity Strategy and Action Plan NGOs – Non-Governmental Organization NLMA – National Land Management Authority NPA – National Protected Area NSEDP – National Socio Economic Development Plan NTA – National Tourism Authority NTFP – Non-Timber Forest Product NUSS – National Urban Sector Strategic O&M – Operation and Maintenance PAFO – Provincial Agriculture and Forestry Office PCR – Physical Cultural Resources PES – Project Environment Specialist PEI – Poverty Environment Initiative PIC – Provincial Information and Cultural Office PIU – Project Implementation Unit PMU – Project Management Unit PCU – Project Coordination Unit PNREO – Provincial Natural Resource and Environment Office PLMO – Provincial Land Management Office PPI – Provincial Planning and Investment Office PPH – Provincial Public Health Office PPA – Provincial Protected Area PPP – Public Private Partnership PSA Poverty and Social Assessment PTO – Provincial Tourism Office PWREO – Provincial Water Resources and Environment Office RBC – River Basin Committee REA – Rapid Environment Assessment RoW Right of Way TSS – Total Suspended Solids SEC – Socio-Economic and Culture SSEZ Support to Infrastructure for Special Economic Zone UDAA – Urban Development and Administration Authority UXO – Unexploded Ordnance WREA – Water Resources and Environment Agency WWTP – Wastewater Treatment Plant 3 WEIGHTS AND MEASURES km – kilometer kg – kilogram ha – hectare Mm – millimeter NOTE (i) In this report, "$" refers to US dollars. This initial environmental examination is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. Your attention is directed to the “terms of use” section of this website. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. I. EXECUTIVE SUMMARY 1. The towns of Kaysone Phomvihane, Phine, and Dansavanh are the three subproject locations for the Loan 2931-LAO, Grant 0313-LAO and Grant 0314-LAO: Greater Mekong Subregion East-West Economic Corridor Towns Development Project (the Project) in Lao People’s Democratic Republic (Lao PDR). Through infrastructure developments in the three towns the goal of the Project is to develop the existing transportation corridor in Lao PDR into an economic corridor as part of the overall economic development of the Greater Mekong Sub- region. 2. This Initial Environmental Examination (IEE) updates the relevant parts of the IEE, dated July 2012 for the Project. The IEE update is prepared on the basis of the available detailed engineering design (DED) draft and final at the time of writing. This includes final DED for the four urban roads subprojects in Kaysone Phomvihane, Phine and Dansavanh as well as draft DEDs for the solid waste management and the drainage and flood mitigation subprojects in Kaysone Phomvihane1. A. Project Summary 3. The Initial Environmental Examination (IEE), 2012 considered the preliminary project design, the baseline environmental conditions, possible impacts and mitigation measures, and institutional arrangements to implement the same. Based on the findings of the IEE, the subproject was assigned Category “B” under ADB categorization. The IEE update confirms the original environmental categorization. 4. The Environmental Compliance Certificate (ECC), Certificate No. 4973/MONRE was issued July 2012 and delegated responsibility for environmental management and monitoring to DONRE at the Provincial level. DONRE extended the validity of the ECC in May 2017, subject to submission of a Lao translation of the IEE and submission of subproject-specific EMPs following completion of DED. EMP certificates for the four urban road subprojects were issued in October/November 2016. 5. The Project includes the following subprojects under the first loan. 1 The Mekong River Embankment subproject (Construction of reclamation and embankment protection with a top width for public, municipal, and tourism activities; Upgrading of the adjacent road; and Site development of a commercial area, public park and car parking) is not included in the update of the IEE. There are insufficient funds under the current loan for the Mekong River Embankment subproject, which will require additional financing to be processed. A feasibility study was conducted in 2016 with endorsement and proposals for additional financing expected during the course of 2017. 5 Town Subproject 1) Upgraded solid waste management and sanitary landfill • Establishment of a managed landfill on the existing dumpsite with modern landfill technology including leachate collection and treatment • Procurement of additional equipment, collection trucks, and facilities • Recycling Station (formerly a separate subproject known as Materials Recovery Facility) with modern efficient technology, incl. construction of facilities for storage, treatment, and recycling/reuse of suitable materials within the existing landfill Kaysone Phomvihane, site. • Septage treatment facility for Kaysone Phomvihane (formerly part of the drainage and wastewater subproject). 2) Improved drainage and flood protection • 700 meters of channel lining and improvement, linking the existing channel to the outfall; • new flood gates to prevent the high water from the Mekong River from entering the drainage channel; • a new pumping station to empty the channel during rainfall events, when the Mekong river levels are high and the flood gates closed; • flood storage in a designated flood retention area within the existing flood plain to reduce the size and capacity of the pumping station. 3) Improved urban roads and drainage • Road widening, pavement strengthening, landscaping, lateral drainage, lighting, and signage 4) Improved urban roads and drainage Phine • Road widening, pavement strengthening, landscaping, lateral drainage, lighting, and signage 5) Improved urban roads and drainage Dansavanh • Road widening, pavement strengthening, landscaping, lateral drainage, lighting, and signage 6. The solid waste management subproject will establish a modern solid waste management system for Kaysone Phomvihane with a design horizon of 2030. The subproject will establish a new cell with sanitary landfilling at the existing site and within the existing site perimeter. The landfill will receive solid waste from the municipality and improve collection rate, recycling, hazardous and medical waste management, and ensure adequate disposal. The bottom seal will be made by compacting the red-clay, giving the bottom a hard surface seal without any cracks or openings, and with the right slope for draining. The subproject will also include a Leachate Treatment facility and a Septic Sludge Treatment Plant that will receive septage collected from Kaysone Phomvihane and discharge to the Leachate Treatment Plant.
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