ENVIRONMENTAL IMPACT ASSESSMENT OF INDUSTRIAL DEVELOPMENT AROUND LUMBINI, THE BIRTHPLACE OF THE LORD BUDDHA, WORLD HERITAGE PROPERTY Document Code: KAT/2013/PI/H/1 ACKNOWLEDGMENT In response to an agreement with IUCN Nepal, a study was carried out on the “Environmental Impact Assessment of Industrial Development around Lumbini, the Birthplace of the Lord Buddha, World Heritage Property”. IUCN acknowledge Venerable Vivekananda of the Lumbini Institute Vipassana Lumbini for his kind cooperation and input during the entire period of the study. We also extend our gratitude to all who have been involved in this endeavour, especially Ms. Nabha Basnyat Thapa, Project Coordinator, UNESCO, Mr. Rajendra Thapa, Member Secretary, Lumbini Development Trust (LDT), Mr. Basanta Bidari, Senior Archeologist, LDT, and Dr. Gitu Giri, Senior Ecologist, Rupandehi College for their valuable input into the study. We thank all the officials of the Government of Nepal, LDT and industries at the local level and local communities for their contribution in providing valuable information during the field visit. We highly appreciate the cooperation of all local participants involved in the study, especially for their active involvement during the focus group discussions. i THE STUDY TEAM A multidisciplinary team of expert was involved in the study: Deepak Paudel Team leader and Environmentalist Kala Adhikari Ecologist and EIA specialist Suman Baskota Statistician Sharmila Ranabhat Socio-economist Dambar Singh Pujara GIS expert Saroj Bhattarai Senior Engineer (Architect and Archaeological Expert) Anjana Shakaya Bio-chemist Sunil Gautam Field Technician Prahalad Yadav Field enumerator Racchya Shah Overall coordination and technical input (IUCN) Anu Adhikari Technical input (IUCN) ii EXECUTIVE SUMMARY Lumbini, the Birthplace of the Lord Buddha and a UNESCO World Heritage Site is a destination for both pilgrims and visitors from within Nepal and around the world. As a World Heritage Site, it is the pride of Nepal and a major source of revenue for the Government of Nepal. The route from Bhairahawa to Lumbini has been for many years a productive region of fertile farmland but rapid change to the environment can be seen due to rapid industrial development that poses an ongoing threat to the area. Increasing environmental pollution caused by growing and existing carbon emissions from industries within the Lumbini Protected Zone (LPZ) also threatens the Lumbini World Heritage site. According to the Industrial Promotion Board (IPB), an agency under the Government of Nepal’s (GoN) Ministry of Industry (MoI), the LPZ is a region covering a 15-km aerial distance from the north, east and west boundary of the Lumbini Project Area (LPA) and up to the Indian border from the southern boundary of the Lumbini Project Area. The expansion of the carbon emission industries has caused several problems such as threats to biodiversity, health hazard to local residents, archaeological properties, social and cultural values etc. As per the Environmental Protection Act (EPA) 1997, an Environmental Impact Assessment (EIA) is mandatory for the protection, conservation and sustainable management of heritage properties. With this view in mind, the study titled: “Environmental Impact Assessment of Industrial Development around Lumbini, the Birthplace of the Lord Buddha, World Heritage Property” has been drawn up to prepare a detailed environment impact assessment of industrial development around the Lumbini World Heritage Site. Specifically the study covers several objectives such as: to identify and locate industrial activities in the study area; develop the zoning classes with a guideline for clarifying the type of development and industrial activities permitted or prohibited in the protected zone; and prepare an environmental plan and monitoring strategy to reduce the potential detrimental impacts caused by industrial activities in the protected zones. The problems caused by industrial expansion within the zone need to be addressed to preserve the sanctity of Lumbini; to promote the sustainable development of the surrounding communities; and to conserve the biodiversity of the region. In order to address these issues, comprehensive information about existing industries; multi-dimensional impacts caused by the industries; land use planning for the promotion of livelihoods of the locals; and preservation of cultural values of the Lumbini area are required to be integrated in the overall conservation and development plans of the zone. The methodologies adopted in the study were: literature reviews, expert consultations, field observations and laboratory analysis etc. The primary data was collected by using some key research tools such as focus group discussions, transect walks with relevant stakeholders, key informant interviews, field observations and survey questionnaires to collect biophysical, socio-political data and community perception on the issue of industrial expansion in the region. Likewise, comprehensive literature reviews were done to collect secondary data on native flora and fauna, environmental conservation and protection governing tools and mechanisms to identify the key issues of the study area. Scientific tools used in the study were: GIS environment for the delineation, base maps and other thematic maps preparation and a Geographical Position System (GPS) survey for the identification of existing industries etc. Data analysis was done by using laboratory analysis of samples of soil and water for the identification of organic matter in soil, and physical and bio-chemical contamination in water. Likewise, some statistical tools such as Likert’s Attitudinal Model, the Chi-square Model and the Correlation Coefficient Model were used for an assessment of the community’s perception and experiences about existing industrial impacts. The study identified industrial activities and their location in the region. The study also developed a concise zoning guideline and prepared an environmental plan and monitoring strategy linked to a set iii of zoning guidelines in order to reduce the impact of industrial activities in the zone. The study revealed that industries prefer this particular region for new operations because of the availability of cheap labour, water sources and easy road accessibility to the border. They gain preferential access to the existing infrastructure (i.e. electricity supply and paved roads). About 57 industries including brick factories (30), cement and clinker production factories (11), steel production (2), noodles production (1), paper production (1) and flour production (2) and others (10) are registered in the study area. Of these, 23 industries were in a functional condition. About 15 industries (11 cement industries, two steel factories, one Paper mill and one noodles factory) are categorized as a major industry in terms of their production and potential impact on environment. About 15 lakhs 33 thousand metric ton cement is produced annually in the region. Likewise, the particulate matters produced by the industries are: cement compounds, alkaline dust, sludge, plastic etc. Furthermore, by-products such as sludge and pollutant water have been directly discharged (without treatment) into the natural river systems, such as the Dano River and the Tinau River. Sludge has also been discharged into open drainage. Most of the factories operating in the Lumbini Road Industrial Corridor are clearly violating the Environment Protection Act (EPA), 1997 and related guidelines which were formulated for the protection of the environment. This has created a detrimental impact on the environment, the flora and fauna, and the health of local people and workers. The condition of the surface and groundwater quality varies from “medium to bad” conditions. Meanwhile, the study found that the soil is slightly alkaline however no toxicity was found in it. Analysis found that the soil alkaline level and the organic matter level were lower than normal standard levels. This indicates that the soil absorbs fugitive effluent due to the activities of the cement factories. The study delineated the LPZ, covering 828 sq.km including 44 Village Development Committees (VDCs) in Rupandehi district and 25 VDCs in Kapilbastu district. The LPZ expands up to Dharmpur in Siddharthanagar Municipality in the east, Pokharbari in Motipur VDC in the northeast, Piparhawa in Bagauli VDC in the southeast, Ajma in Ama VDC in the south, Pipra in Pipra VDC in the southwest, Dupripur in Dharmapaniya VDC in the west and Pahadibuta in Gajedi VDC in the north. The study recommended short-term and long-term recommendations in order to address environmental issues in the region. Mitigation measures, environmental management plans and compliances are recommended for the reduction of air, water, and noise and soil pollution. The auditing frameworks to audit environmental impacts in future are presented in this study. For the long- term, the study recommended five protection zones in the LPZ : Zone 1-Restricted Zone; Zone 2- Buffer Zone; Zone 3- Special Conservation and Management Zone; Zone 4-Community resource Management Zone; and Zone 5-Ecological Economic Development Zone on the basis of guiding principles and approaches such as those contained in the provisions of a UNESCO World Heritage priority, IUCN Conservation Protection priority and Government of Nepal priority on the conservation of World Heritage Sites and the conservation of natural systems, community-centred approach, the Kenzo Tange Master