Preparing the Pilot Border Trade and Investment Development Project

Initial Environmental Examination

Project Number: 42135 May 2009

Papua New Guinea: Preparing the Pilot Border Trade and Investment Development Project

Prepared by SMEC International Pty Ltd.

For PNG West Sepik Provincial Administration

This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents. (For project preparatory technical assistance: All the views expressed herein may not be incorporated into the proposed project’s design.

Initial Environmental Examination Preparing the Pilot Border Trade and Investment Development Project

May 2009 Ref. TA 7125 PNG

ADB TA7125 PNG Pilot Border Trade & Investment Development Report – IEE Report May 2009

Table of Contents

ABBREVIATIONS

1. INTRODUCTION ...... 1

1.1 THE PROJECT ...... 1 1.2 ENVIRONMENTAL PROTECTION IN PAPUA NEW GUINEA...... 2 1.2.1 Environment Act ...... 2 1.3 ENVIRONMENT POLICY OF ADB ...... 3 1.4 RECOMMENDED CATEGORIZATION OF THE PROJECT ...... 4 1.5 PURPOSE AND METHODOLOGY OF IEE ...... 4 2. DESCRIPTION OF THE PROJECT ...... 6

2.1 PROJECT LOCATION ...... 6 2.2 CONSTRUCTION OF BORDER FACILITIES ...... 6 2.3 INSTALLATION OF SEPTIC TANKS ...... 12 2.4 FUTURE ACTIVITIES TO STIMULATE TRADE AND INVESTMENT ...... 13 2.5 NEED FOR THE PROJECT ...... 13 3. DESCRIPTION OF THE EXISTING ENVIRONMENT ...... 15

3.1 PHYSICAL ENVIRONMENT ...... 15 3.1.1 Meteorology and Climate ...... 15 3.1.2 Geology, Topography and Soils ...... 15 3.1.3 Seismology and Geomorphic Processes ...... 16 3.1.4 Hydrology and Groundwater ...... 16 3.1.5 Climate Change ...... 17 3.2 BIOLOGICAL RESOURCES ...... 19 3.2.1 Flora and Fauna ...... 19 3.3 SOCIO-ECONOMIC RESOURCES ...... 20 3.3.1 Wutung Village ...... 20 3.3.2 Cultural Heritage ...... 23 4. ENVIRONMENTAL IMPACTS & MITIGATION ...... 24

4.1 DESIGN / PRE-CONSTRUCTION PHASE ...... 36 4.1.1 Project Disclosure ...... 36 4.1.2 Preparing Contractors to Address Mitigation Measures ...... 36 4.2 CONSTRUCTION PHASE ...... 37 4.2.1 Exposure of asbestos during demolition of existing buildings ...... 37 4.3 OPERATIONAL PHASE ...... 38 4.4 INSTALLATION OF SEPTIC TANKS AND TOILETS IN WUTUNG VILLAGE ...... 38 4.4.1 Groundwater contamination ...... 38 4.5 FUTURE ACTIVITIES TO IMPROVE TRADE AND INVESTMENT IN VANIMO ...... 38 5. PUBLIC CONSULTATION ...... 40

5.1 IDENTIFICATION OF STAKEHOLDERS ...... 40 5.2 CONSULTATION WITH STAKEHOLDERS ...... 40 5.3 CONCERNS ADDRESSED ...... 42 6. ENVIRONMENTAL MANAGEMENT AND MONITORING ...... 43

6.1 ENVIRONMENTAL MANAGEMENT PLAN ...... 43 6.2 ENVIRONMENTAL MONITORING ...... 43 6.3 RESPONSIBILITIES FOR ENVIRONMENTAL MONITORING ...... 44 6.3.1 Proponent – Border Development Authority ...... 44 6.3.2 Supervising Consultant ...... 44 6.3.3 Contractor ...... 44 6.3.4 Environmental Management Officer ...... 45 6.3.5 Additional Site Personnel ...... 45

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ADB TA7125 PNG Pilot Border Trade & Investment Development Report – IEE Report May 2009

7. FINDINGS AND RECOMMENDATIONS ...... 54

7.1 FINDINGS ...... 54 7.2 CONCLUSIONS ...... 54 7.3 RECOMMENDATIONS ...... 55

Figures and Tables

Figure 1: West Sepik Province ...... 1 Figure 2: Project Location – Vanimo and Wutung ...... 6 Figure 3: Project Location – Vanimo and Wutung ...... 6 Figure 4: Detail Plan Border Administration ...... 10 Figure 5: Detail Plan Wutung Administration ...... 11 Figure 6: Average temperature and rainfall for Vanimo ...... 15 Figure 7: Predicting degree of inundation by sea level rise of 1 metre. Stippling represents severe inundation, vertical hatching represents moderate inundation (Figure 6 taken from Sullivan 1990)...... 18 Figure 8: Vegetation Communities ...... 20

Table 1: Environment (Prescribed Activities) Regulation 2002 ...... 2 Table 2: 1990 & 2000 Census Figures for West Coast Villages and Growth Rates ...... 21 Table 3: Socio-Economic Indicators of West Coast Population ...... 22 Table 5: Summary of Environmental Impacts ...... 26 Table 6: Summary Benefits and Risks ...... 41 Table 7: Community Development Priorities ...... 42 Table 8: Environmental Management and Monitoring Plan ...... 46

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Abbreviations

ADB Asian Development Bank AIDS Acquired Immune Deficiency Syndrome BA Border Administration BDA Border Development Authority DEC Department of Environment and Conservation EIA Environmental Impact Assessment EMO Environmental Management Officer EMMP Environmental Management and Monitoring Plan GoPNG Government of Papua New Guinea HIV Human Immuno-deficiency Virus IEE Initial Environmental Examination IIC Included in Contract IPSA Initial Poverty and Social Assessment LO Liaison Officer OM Operations Manual PA West Sepik Provincial Administration PAM Project Administration Manual PNG Papua New Guinea PPTA Project Preparation Technical Assistance SEIA Summary Environmental Impact Assessment SIEE Summary Initial Environmental Examination RCI Regional Cooperation and Integration ToR Terms of Reference WA Wutung Administration

Weights and Measures kg Kilogram mm Millimeter m, m2, m3 Meter, square meters, cubic meters km, km2 Kilometer, square kilometer

Currency Equivalents

Currency Unit At mid May 2009 US $1.00 = 2.86 Papua New Guinea Kina AUS$1.00 = 2.17 Papua New Guinea Kina Note: Unless otherwise stated, in this report, "$" refers to US dollars.

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1. Introduction

1.1 The Project

1. Located in the northwest of PNG, West Sepik province is PNG's third largest province with a land area of 3,605 hectares, accounting for 7.77% of the total land. The land area consists of high mountainous region to the south, Sepik basin in the centre and the low coastal region to the north. Its four districts are generally mountainous, and mountain ranges are dominated by limestone karst with a large number of caves. 2. The province is one of the least developed provinces in PNG. It is remote and isolated from PNG's major population and growth centres and is only accessible by air and coastal shipping. Accessibility within the province is also poor. There is no road connection between Vanimo, the capital of the province and the four districts and between the four districts themselves.

Figure 1: West Sepik Province

3. The Asian Development Bank (ADB), with finance from the Japan Special Fund, has funded the Papua New Guinea: Preparing the Pilot Border Trade and Investment Development project preparatory technical assistance (PPTA). 4. The PPTA focuses on two distinctive outputs: (i) a design for a pilot border facility development project, and (ii) an advisory TA program aiming at creating an enabling institutional environment for trade and investment between PNG and Indonesia (without excluding others). Activities include (i) identifying the border facilities to be financed; (ii) designing specifications; (iii) preparing a procurement plan, bidding documents, and implementation schedule; (iv) cost estimation; (v) designing construction supervision arrangements; (vi) assessing PNG‟s laws and regulations governing border management and control, trade, and investment; (vii) assessing Indonesia‟s laws and regulations governing border management in Papua Province, trade, and investment; (viii) reviewing and assessing the existing border agreements between the two countries; (ix) designing institutional development road maps for efficient and effective PNG border management

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ADB TA7125 PNG Pilot Border Trade & Investment Development Report – IEE Report May 2009 and a conducive trade and investment environment in Vanimo; (x) socioeconomic studies for the town of Vanimo, Wutung Village, and other major stakeholders; (xi) collecting baseline data; (xii) assessing socioeconomic and environmental implications of the proposed project; and (xiii) preparing mitigation programs. 5. The proposed project will aim at developing Vanimo into a trade and growth center, leading to increased across-the-border trade between PNG and Indonesia and increased investment from other parts of PNG and foreign countries. 6. The project outputs include (i) border facilities including customs, immigration, and quarantine facilities, resident houses, and markets; (ii) improved efficiency of customs clearance, (iii) revised and approved Free Trade Zone Act, (iv) approved telecommunication strategy for West Sepik province, (v) one-stop office under Border Development Authority for promoting trade, investment, tourism, and coordinated border management for West Sepik Province, and (vi) broadened human capital base. 7. This Initial Environmental Examination (IEE) presents the environmental assessments of the construction of border facilities at the Wutung Border post, installation of septic tanks in Wutung Village and a broad initial assessment of possible developments in Vanimo in accordance with road maps for trade and investment development. 8. This IEE has been carried out to ensure that the potential adverse environmental impacts are appropriately addressed in line with ADB Environment Policy (2002) and ADB Environmental Assessment Guidelines (2003). 9. This IEE has also been prepared to meet the requirements of the GoPNG for environmental assessment. 1.2 Environmental Protection in Papua New Guinea

1.2.1 Environment Act

10. The environmental regulations of GoPNG are derived from the Environment Act 2000. The Environment (Prescribed Activities) Regulation 2002 categorizes designated projects as “Prescribed Activities” in two schedules according to the anticipated potential environmental impact. Proponents of projects that have more adverse environmental impact (Level 2 and Level 3) are required to obtain an environmental permit from the Department of Environment and Conservation (DEC) following environmental assessment. 11. The construction of infrastructure that is likely to arise out of this PPTA under the future project is not listed as “Prescribed Activities” and would therefore not be a Level 2 or 3 activity. However certain associated project activities commonly associated with infrastructure development such as quarry operations, extraction of gravel or discharge of waste water are Level 2 activities that may require an environmental permit depending on the duration and scale of those activities. The trigger points at which these type of activities may become Level 2 activities are:

Table 1: Environment (Prescribed Activities) Regulation 2002

Sub –Category 7: Mining and extraction

7.4 Quarrying involving the extraction of more than 100,000 tonnes per year.

7.5 Gravel extraction operating continuously for more than 6 months and involving the extraction of more than 10,000

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tonnes per year.

Sub –Category 11: Waste treatment

11.1 Sewage treatment in plants serving more than an equivalent population of 5,000 people.

11.2 Septic tank sludge disposal systems intended to serve an equivalent population of greater than 500 people.

12. It is considered that the scale of development of the border facility and any future development associated with improving trade and investment in Vanimo is unlikely to exceed the above trigger points and hence be classified as a Level 2 Activity. 13. In this instance an environmental permit will not be required from the DEC. 1.3 Environment Policy of ADB

14. The ADB‟s Environment Policy was approved in 2002 and is supported by a set of procedural guidelines and various sections of the Operations Manual (OM) (ADB, 2002; ADB, 2003a; ADB, 2006b).1 All ADB investments are subject to categorization to determine the level of environmental assessment required. According to OM 20 – Environmental Categorization the ADB classifies projects as one of four categories based on generic locational characteristics and magnitude of impacts of projects:  Category A – projects with likely significant adverse impacts that are located in or near sensitive environments; cultural heritage sites; densely populated areas; regions subject to heavy development or create conflicts with natural resource allocation; and lands or waters containing valuable resources. These projects require an EIA and a summary EIA (SEIA) addressing the significant environmental impacts;  Category B – projects that will have impacts on environmentally important areas or people that are less adverse than Category A and mitigation measures can be designed more easily than for Category A projects. Category B projects deemed „sensitive‟ are subject to the same disclosure requirements as Category A projects. Category B projects require an IEE and summary initial environmental examination (SIEE) to determine whether or not significant environmental impacts warranting an EIA are likely;  Category C – projects that are likely to have minimal or no adverse environmental impacts. Category C projects do not require and EIA or IEE but need to be reviewed for identification of mitigation measures that can be incorporated directly into project design or could be subject to an environmental management plan; and  Category FI – these are projects that involve a line of credit through a financial intermediary or an equity investment in a financial intermediary. The financial intermediary must apply an environmental management system, unless all subprojects will result in insignificant impacts. 15. If a project with many components or subprojects has one component that is categorized as A, the entire project becomes a Category A project and an EIA must be prepared, full disclosure of which is required at least 120 days before ADB Board consideration. If a subproject will result in significant resettlement, this will mean the

1 OM Section 20: Environmental Categorization, and OM Section F1/BP and OM Section F1/OP Page 3

ADB TA7125 PNG Pilot Border Trade & Investment Development Report – IEE Report May 2009 project is treated as a „Category B Sensitive‟ project and is also subject to similar disclosure requirements. 16. The IEE and summary initial environmental examination (SIEE) of Category B projects are reviewed by ADB‟s Regional Department Sector and Environment and Social Safeguards Divisions as well as by the executing agency and authorized government agency for environment. 17. Following final review, the IEE and SIEE will be officially submitted to the ADB for submission to the Board and the public. The SIEE will be circulated widely, including through the depository system on ADB‟s website, through which the IEE can also be made available upon request. 1.4 Recommended Categorization of the Project

18. The Specific Assurances of Loan and Project Agreements/Covenants are Appendix 13 of the Project Administration Manual (PAM). In respect of environment the specific assurances are that: i. No project assessed as Category A (significant adverse impacts) will be approved under the project; and ii. The Government will ensure that (a) the IEE and preliminary environmental management plan (EMP) are reviewed and updated at the engineering design stage by the contractor; (b) the project complies with the updated EMP, all applicable national laws, regulations and guidelines, and ADB‟s Environment Policy (2002); (c) the EMP is reflected in bidding documents and civil works contracts; (d) any adverse environmental impacts arising from the project are minimized by implementing the agreed mitigation measures; and, (e) environmental monitoring is done by contractors. 19. ADB‟s system of environmental categorization is determined according to the likelihood and magnitude of risk associated with a project when it is implemented without mitigation. The overall risks associated with this project are considered low because the project is confined to Border Facility construction within an existing developed footprint; installation of septic tanks in Wutung Village can occur in a manner that will not pose a significant risk to the environment; and future works associated with trade and investment development will be subject to more detailed assessment at the time of those works occurring. 20. Furthermore, in relation to installation of septic tanks in Wutung Village, environmental improvements are expected as a result of this as effluent will be managed and treated rather than the current situation of untreated effluent being discharged directly into receiving waters. 21. Due to the minimal environmental impacts of the proposed project the recommendation is that it should have an environmental categorization of Category B and therefore not require a full EIA. 1.5 Purpose and Methodology of IEE

22. To meet the requirements of the ADB‟s Environmental Assessment Guidelines an IEE has been prepared for the works proposed in relation to the construction of border facilities at the Wutung Border post, installation of septic tanks in Wutung Village and a broad initial assessment of possible developments in Vanimo in accordance with road maps for trade and investment development. The purpose of the IEE is to assess the potential impacts of these activities on the surrounding biophysical, ecological, and social environment and to develop procedures to ensure that future activities take account of environmental considerations.

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23. The research for, and preparation of the IEE was undertaken over the period March to May 2009. The SMEC International Social and Economic Analysis Specialist has also conducted a village survey and social impact field work which are presented as the project‟s Initial Poverty and Social Assessment (IPSA). Some of that work, where relevant, has been incorporated into this IEE. 24. The following methodology was employed for this IEE: i. Existing baseline data (including all available environmental legislation and guidelines) and relevant reports from previous similar projects were collected, reviewed, and analyzed; ii. Engineering data, designs, field notes and photographs produced for the studies were reviewed and discussed to identify the various environmental issues involved; iii. Field trips were undertaken to examine existing environmental conditions and understand the type and magnitude of expected impacts (note that no flora and fauna survey was conducted); iv. The possible environmental impacts and mitigation measures for each step of the planning, design, construction and operation processes were assessed; and v. A preliminary EMP has been prepared. The EMP will be updated by the contractor prior to any construction commencing.

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ADB TA7125 PNG Pilot Border Trade & Investment Development Report – IEE Report May 2009

2. Description of the Project

2.1 Project Location

The Vanimo and Wutung Villages are located in the extreme north-west corner of Papua New Guinea in the Sandaun Province between longitudes of 141o and 142 o and between the north coast and the watershed of the Bewani Mountains.

Figure 2: Project Location – Vanimo and Wutung Wutung Border Post

Figure 3: Project Location – Vanimo and Wutung 2.2 Construction of Border Facilities

25. The Boarder facilities are composed of two facility locations; Border Administration (BA) facilities on top of the plateau at the border post and Wutung Administration (WA)

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ADB TA7125 PNG Pilot Border Trade & Investment Development Report – IEE Report May 2009 including residential houses located respectively on the plateau and further down the Highway, within the Bougainville Bay area. 26. The Border Administration consists of  1x main Customs/Quarantine & Immigration Building,  1x Vehicle Wash Down Shed,  1x Store House,  1x Fumigation Shed,  1x Incinerator Shed.  1xToilet / Ablution Hut. (Not in use)  1xBeacon Tower

27. The buildings include a main timber frame structure with painted weather boards as external walls, internal wall of common ply and floor of concrete slab. A total of 11 office spaces, including toilets and an extended attached inspection cover shelter are designed in the building. All buildings were constructed in 1998 by the Department. of Works. In the last 10 years, the natural progression of wear and tear, abuse by staff, pest infestation etc has to some extent deteriorated the main building. The support facilities are in general useable condition but require maintenance. 28. There is water supply including installation of a reservoir tank on the site. Water supply from a source is supplied to the BA facilities and is gravity feed to the villages on the lower plains. The main building has rainwater water tanks and an electric pump system that are not in use. These rainwater tanks are to supply water for the wash down sheds. 29. The Wash Down shed is basically a steel frame open shed structure that has pressure water facilities built on slab to wash down vehicles. A further capture and containment septic system is built under ground and collects fluid waste and discharge to some point of location. 30. The Wutung administration consists of an administration building adjacent to the main high way and the staff houses over on the opposite side of the road. The administration building has deteriorated but with minor additional improvements seems adequate for general maintenance and continued use. 31. Staff Houses are of 3 basic types; Married Quarters, Department of Works H65 and colonial houses. All houses are on posts. There are 16 houses. The H65‟s need major maintenance. Married Quarters including 2 colonial houses should be demolished as the cost of repair will almost equal the price of new construction. The houses that can be kept are the old H65‟s and the new H65 constructed recently. Each house has rainwater tanks (9000Ltrs) with pumps both electric and hand pumps. However, the breakdown of the generator now prevents water to be pumped directly up. Most houses have broken hand pumps. 32. Site Surveys were completed for the Border Administration infrastructure areas, and the Wutung official residence area. Works included boundary location, location of existing features, contours and preparation of a detailed site plan with contours. 33. The Design Team carefully studied the:  Wutung Border Development Plan 2000,  existing Indonesian border complex, and  existing PNG Wutung Border Post office and other infrastructure. 34. Detailed assessments were carried out before the beginning of the planning of the development of the Proposed Wutung Border Complex. A Functional Design Brief of the proposed Wutung Border Complex was prepared after consultation with the Project Team,

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ADB TA7125 PNG Pilot Border Trade & Investment Development Report – IEE Report May 2009 the Project Steering Committee, Customs, Police, Quarantine and Immigration representatives. Written briefs were prepared and submitted to the Project Team from Customs, Police and Quarantine Departments. 35. On March 19, 2009, a presentation was delivered to the Project Steering Committee for their approval of the concept design. The Steering Committee unanimously approved the Proposed Layout of the Border Complex and Residential layout. 36. In accordance with international border crossing and processing standards and practices, the Border Crossing Complex will follow the following design guidelines.  The Design Team‟s first priority was to accommodate and facilitate vehicle and pedestrian traffic entering and leaving the territory of PNG.  The incoming and outgoing vehicle and the pedestrian traffic, through manned boom gates, will be segregated from each other.  The processing of passport, immigration, customs, and quarantine formalities will be carried out under Single Window procedures (across a service counter) for each of the commercial, non-commercial, and pedestrian traffic.  Two traffic lanes for each of cars, buses and trucks is provided to ensure that the longer processing traffic does not hold up the faster processed traffic.  The pedestrian traffic will have a separate lane for the passport, customs, and quarantine clearance also out of single window from across a service counter.  There will be two separate Administration Buildings housing the incoming and outgoing processing facilities.  Each of the incoming and outgoing processing areas to be provided with X – ray Scanner.  The Administration Buildings, (2 Storey Buildings) will house the processing staff, on the ground floor and all the management staff on the upper level.  Quarantine will be housed in a separated building, with a Quarantine Inspection lockable yard, and vehicle Wash down Facility, bonded warehouse and loading dock.  Dehumidifier and Incinerator will be provided in lockable area.  Police Building will be attached to the Administration Building, which includes two holding cells for detainees.  Sufficient car parking is to be provided for both incoming and outgoing areas.  Attached to the Border Complex, will be an Accommodation Complex to house senior Immigration, Customs, Police and Quarantine Management staff and also to accommodate standby police staff.  The whole complex is to have adequate security fencing, with CCTV video cameras.  Outside the complex to provide adequate bus station and sufficient visitors car parks and provide serviced commercial allotments.  All road works are to be paved with asphalt and with curbs and gutters.

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ADB TA7125 PNG Pilot Border Trade & Investment Development Report – IEE Report May 2009

 A temporary border post is to be provided during the construction of the complex. 37. The proposed layout of the Border Administration and Wutung Administration are shown in Figure 4: Detail Plan Border Administration and Figure 5.

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Figure 4: Detail Plan Border Administration

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Figure 5: Detail Plan Wutung Administration

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2.3 Installation of Septic Tanks

38. As part of the terms of reference (TOR), a project and design program was required to mitigate the project‟s possible negative socioeconomic impacts. As part of the socioeconomic study, a series of consultations, interviews, and focus group discussions were conducted with Wutung leaders and members from 25 February – 17 March 2009 to identify possible negative impacts and develop with the community possible mitigation measures. 39. Areas investigated by the project team included: (i) community perceived benefits and risks of opening the border to commercial trade (ii) their opinions on whether they support the opening or not, (iii) opinions on how to facilitate the border opening, (iv) community development priorities, and (v) and willingness to pay for these priorities. 40. As a result of community consultation, it was identified that installation of toilets and septic tanks was a community development priority. 41. Currently, all households in Wutung village, similar to the other four West Coast villages, use the beach as a toilet. The beach is divided into two main sections: the right side facing the sea for males and the left side for women. (Even children are made aware of this very important distinction to protect privacy for both groups.) Using the beach as a toilet was a long time community practice but attitudes are shifting towards use of individual toilets since using the beach is no longer acceptable particularly for women and youth who need privacy in an expanding village. 42. Also another explanation given by community members was that attempts to shift to alternatives such as building communal toilets off the beach failed due to factors such as lack of water supply connection. People did not want to carry buckets of water to flush and clean the communal toilet. Others attempted to build pit toilets on the beach but also failed because sandy areas tend to collapse and fill up quickly. 43. The toilet assistance will be through a conditional cash transfer implemented through a refund scheme for households who would build their own toilets and be certified that it passed the prescribed standards by the Provincial Government Department of Health (DOH). 44. The objective of this proposed project is to help improve the living conditions of Wutung households by encouraging them to build their own toilets to receive refunds after certification. This approach is built on the assumption that Wutung people want to shift from their unhygienic traditional practice hence are willing to invest in their own toilets. Need for privacy and sense of pride are the main motivations for this willingness to shift. Eighty two (82) households expressed an interest in a survey2 conducted by the Wutung Ward Councillor. 45. The need for privacy is based on recognition that the village population is increasing hence this unhygienic practice is posing a threat to the environment and people‟s health. Men in particular also see the practice as a possible deterrent to plans to establish tourist- related businesses in the village and surrounding areas. 46. The proposed toilet design is about 1m x 2m in size and includes a ceramic toilet bowl, a cemented floor, a sealed wooden wall, a corrugated iron roof, a small cement water tank, and a septic tank. Depending on each household preference, a water bucket could be used to flush or a water hose could be connected to the catchment area to bring in water from the communal tap. Effluent will be disposed of to septic tanks (approximately 1 septic tank to serve 5 to 10 households) and then shallow drainage fields. Environmental impacts of this are discussed later in this report.

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2.4 Future Activities to stimulate Trade and Investment

47. The PPTA identifies a range of broad policies that will assist in improving trade and investment Vanimo. These policies will not lead to direct environmental impacts in the short term, but nevertheless will likely result in future development within Vanimo (for example provision of infrastructure and development in the Free Trade Zone area). A broad assessment of environmental issues associated with these broad policies is provided. 2.5 Need for the Project

48. The Asian Development Bank Long Term Strategic Framework 2008 – 2020 identifies three distinct but complementary development agendas for the region: inclusive economic growth, environmentally sustainable growth, and regional integration. Within the regional integration agenda, regional cooperation and integration (RCI) is identified as one of five core operational areas for the ADB. RCI activities present opportunities for accelerating economic growth, raising productivity and employment, reducing economic disparities, and achieving closer policy coordination and collaboration in support of regional and global public goods3. 49. RCI can also improve cross border connectivity, increase regional trade and investment, mobilize regional savings for investment, reduce macroeconomic vulnerability to shocks, facilitate cooperation in regional public goods, and improve overall governance standards across the region4. 50. Improving trade links between PNG and Indonesia is another avenue for contributing to economic growth and poverty reduction. Priority lending assistance will support the development of key sub regional infrastructure and complementary trade facilitation services along the land border of PNG and Indonesia5. Consistent with these strategic documents and based on discussions with central and local government agencies, private sector, landowner representatives and donor agencies, the PPTA has focused on developing the border facilities and an institutional framework conducive to cross-border trade and investment in the West Sepik (Sandaun) Province. 51. The province is one of the least developed provinces in PNG. It is remote and isolated from PNG's major population and growth centres and is only accessible by air and coastal shipping. Accessibility within the province is also poor. There is no road connection between Vanimo, the capital of the province and the four districts and between the four districts themselves. 52. Telecommunication services are costly and unreliable. Mobile phones and even land line services are often disrupted, sometimes for days. Access to internet is limited to slow and expensive dial-up service. Electricity and water are also in short supply. 53. There are few economic activities in the province. The modern sector is dominated by the government and timber industry. Logs are exported without being processed. Around 95% of the province's 185,000 population is isolated in the rural areas, surviving on the subsistence agriculture. 54. The internal revenue6 of the province totalled less than K2 million in 2007, the highest since 2004. The province almost relies entirely on the national grants to finance the basic service delivery such as education, health, and transport infrastructure maintenance. It received about K5.6 million national grants in 2008 and is guaranteed to

3 Strategy 2020: The Long-Term Strategic Framework of the Asian Development Bank 2008-2020, ADB (2008) 4 Regional Cooperation and Integration Strategy, ADB (2006) 5 Regional Operations Business Plan: Pacific 2007 – 2010, ADB (2007) 6 Include licenses, fees, taxes, commercial receipt, and miscellaneous revenue. Page 13

ADB TA7125 PNG Pilot Border Trade & Investment Development Report – IEE Report May 2009 receive this level of grants annually until 2013. This will enable the province to cover about 50% of the cost of the service delivery. 55. The development indicators are among the worst in PNG. The illiterate rate for the province is estimated around 70%. Life expectancy at birth is only 45.5 years, significantly shorter than the national average (57.4 years). Infant mortality rate is 110 per 1,000 live births, well above the national figure of 70 per 1,000 live births. Child mortality rate under age of five is 64 per 1000. Malnutrition rate is around 40%. Although population growth rate (about 3.2%) is high, this has been offset by the high mortality rate. 56. The province, however, has opportunities to improve its development status. First, it is richly endowed with minerals, forest, fishery, and eco-conditions for agricultural crops such as cocoa, oil palm, and vanilla. Culturally, it is also diverse. The province has five different cultural zones and 95 local languages. Each has different rites, traditions, and art styles. 57. Second, the province shares 260 kilometers of land border with Papua of Indonesia which is the second richest province in Indonesia and offers products and services at prices 25 to 40% lower than those of PNG . Vanimo, the capital of the province is well connected with Jayapura, capital of Pupua province of Indonesia by road. In terms of development status, Jayapura is about 40 years ahead of Vanimo. 58. Acknowledging the trade benefits, in 1993, PNG and Indonesia signed an agreement on Special Arrangements for Traditional and Customary Border Crossings. The border residents with the border crossing cards are allowed to freely enter into and travel within the corresponding part of the border area of the other solely for traditional and customary purposes. Each card holder is entitled to $300 value of goods free from taxes per month. Indonesian official records show that the across-the-border trade volume reached about $7 million in 2007. Indonesia is in demand of sugar, beef, beer, tuna, cocoa, vanilla, snack foods, and betel nuts from PNG, while PNG buys spare parts for trucks, rice, water, electronics, textile, and house ware from Papua of Indonesia. 59. Expanding the cross-the-border trade with Indonesia will provide people in West Sepik province with a wider choice of products at lower cost and increase their welfare. It will also mean improved market access for PNG exports, increased business opportunities, new investment, job creation, enhanced productivity, as well as more rapid and sustainable growth. 60. The Project will lead to increased across-the-border trade between PNG and Indonesia and increased investment from other parts of PNG and foreign countries. 61. The project outputs include (i) border facilities including customs, immigration, and quarantine facilities, resident houses, and markets; (ii) improved efficiency of customs clearance, (iii) revised and approved Free Trade Zone Act, (iv) approved telecommunication strategy for West Sepik province, (v) one-stop office under Border Development Authority for promoting trade, investment, tourism, and coordinated border management for West Sepik Province, and (vi) broadened human capital base.

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3. Description of the Existing Environment

3.1 Physical Environment

3.1.1 Meteorology and Climate

62. The Vanimo and Wutung areas have a wet tropical climate with little seasonal variation in rainfall and temperature. The months May to October generally have less rainfall than the remainder of the year. The annual temperature ranges are minimal. The mean annual temperature is about 27 o and the diurnal range is about 6 o.

Figure 6: Average temperature and rainfall for Vanimo

Source: World Meteorological Organization

3.1.2 Geology, Topography and Soils

63. The Vanimo area is situated in the north-west corner of Papua New Guinea and extends from the north coast to the watershed between the Sepik River system and the coastal drainage system. The area contains a narrow coastal plain, two extensive alluvial plains, a roughly east-west directed belt of coastal ranges, an intermontane zone of hills and fans, the intermontane lowlands, forming a tectonic and topographic low south of the coastal ranges, and the inland ranges. These main physiographic regions include a variety of land forms and rock types. Geologically the area is part of the “northern sedimentary basin” of Papua New Guinea and is dominated by tertiary and younger sediments.7 64. Reference to the 1:250,000 scale Geological Map and associated memoir8 indicates the site comprises deposits from the Holocene age. Its immediate underlying geological

7 Loffler, Ernst. 1972, Land resources of the Vanimo area, Papua New Guinea : comprising papers / by E. Loffler ... [and others] C.S.I.R.O., Melbourne 8 Norvick, M., Hutchison, D. S. 1980. Aitape-Vanimo Papua New Guinea: 1:250 000 Geological Series Explanatory Notes. Geological Survey of Papua New Guinea, Dept of Minerals and Energy. 44 p.+ map. Page 15

ADB TA7125 PNG Pilot Border Trade & Investment Development Report – IEE Report May 2009 formation originates of reef limestone. The subsoil samples retrieved from site consist of topsoil of weathered material overlaying bedrock of coronous limestone. 65. Quaternary cover sediments were deposited after tectonic activity had ceased so do not exhibit the folding and faulting of earlier formations. There is however evidence for recent uplift of young coral reefs over 100 m above sea level around Vanimo and the Serra Hills. At the present day, coral reefs are developing along the coast, alluvium is accumulating in the modern river flood plain and landslide debris (colluvium) is accumulating in the intramontane valleys. 66. The physiographic regions that the Vanimo and Wutung areas fall into are classified as the coastal plain and coastal ranges9. 67. The coastal plain forms a narrow belt in front of steeply rising coastal ranges. Either it consists of a sequence of beach ridges and swales with blocked swamps or it is formed of coral platforms. Dark, shallow, alkaline, sandy soils occur on coral. Deep sandy soils occur on alluvium, and these beome increasingly gleyed towards the swampy parts. 68. The coastal ranges rise abruptly from the coastal plain or directly from the sea to altitudes of 400 meters or more. They consist of plateau and plateau like areas with steep escarpments to the north, a characteristic of the Wutung border area. The dominant rock type is limestone with a varying degree of impurity. 69. Typical limestone soils are very shallow, very dark, neutral to alkaline in reaction, and fine textured. Deeper, very fine textured soils occur on intercalated sedimentary rocks.

3.1.3 Seismology and Geomorphic Processes

70. Seismic activity (earthquakes) are common in the Torricelli Mountains and the eastern Bewani Mountains, however areas of common seismic activity do not extend to sedimentary areas closer to the coast at Wutung and Vanimo, but are located further south and south west10. 71. Common Geomiorphic processes occurring in the more mountainous areas of the Bewani Range include landslides, slumps, gullies, soil creep and fluvial erosion. These are not significant risks at the project site due to the very stable local geology as indicated in the project geotechnical report with the exception of localised erosion processes that may occur as a result of construction activities. These risks are addressed in the environmental impacts and mitigation chapter and can be mitigated against. 72. Construction using appropriate building standards in accordance with building regulations will adequately mitigate against seismic and geomorphic risks.

3.1.4 Hydrology and Groundwater

73. There is one main river located near Wutung Village – the Chalong River. When approaching Wutung area from Vanimo town, this river is about 100m from the Wutung Administration residential area, approximately 300m from the Wutung village and 2 kilometres from the Border Administration complex. This is the only river within the vicinity of the project sites and the village. Other than that, there are no other rivers or creeks nearby or in between the project sites and the village. 74. Hydrology of the Border Administration area on the plateau is disturbed from its natural state due to the existing development on the site. Stormwater is currently

9 Loffler, Ernst. 1972, Land resources of the Vanimo area, Papua New Guinea : comprising papers / by E. Loffler ... [and others] C.S.I.R.O., Melbourne 10 Loffler, Ernst. 1972, Land resources of the Vanimo area, Papua New Guinea : comprising papers / by E. Loffler ... [and others] C.S.I.R.O., Melbourne Page 16

ADB TA7125 PNG Pilot Border Trade & Investment Development Report – IEE Report May 2009 managed and controlled flow is directed to discharge off the plateau. This will not change as a result of the proposed project. The re-development of this site will incorporate best practice water sensitive design to capture, control and manage stormwater discharge. 75. Hydrology of the Wutung Administration area is also disturbed from its natural state due to existing development. Overland flow is into small drainage lines that ultimately reach the CHalong River or the ocean. The re-development of this site will incorporate best practice water sensitive design to capture, control and manage stormwater discharge. 76. Groundwater levels on the coastal plain vary from approximately 1 meter below surface level on the coastal plain to 4 metres below surface level around Wutung village. and the projects (installation of septic tanks and future projects in Vanimo) are located close to several natural water courses. Depth to groundwater will be a significant consideration in the design of suitable effluent disposal systems for the villages.

3.1.5 Climate Change

77. The potential impacts of climate change are varied and extensive, and include likely increases in sea and air temperatures, sea level rises, altered rainfall patterns and altered frequency of extreme weather patterns11. 78. PNG has already been affected by extreme weather and climate events, such as those brought about by the El Nino in 1997/98. The PNG Government is now considering the predicted future changes in temperatures and sea level, as these changes may lead to inundation of low lying inland and coastal areas, bleaching of coral and loss of coastal defenses, loss of wetlands, changes to the fisheries, forestry and agriculture sectors, alteration to water resources and land use practices, and impacts on health. 79. The coastline of West Sepik Province is particularly susceptible to rising sea levels. A Sea Level Risk Assessment undertaken in 1990 resulted in the map shown in Figure 7. It concluded that of the 17,000 km of PNG coastline approximately 26% would be affected either moderately or severely from inundation, with 50% of the West Sepik coastline being impacted12.

11 Pittock, B. (2003). Climate change: An Australian Guide to the Science and Potential Impacts, Australian Greenhouse Office. 12 Sullivan, M. (1990). The impacts of projected climate change on coastal land use in Papua New Guinea. In Proceedings of the Torres Strait baseline Study Conference. 19 – 23 November 1990. Page 17

ADB TA7125 PNG Pilot Border Trade & Investment Development Report – IEE Report May 2009

Figure 7: Predicting degree of inundation by sea level rise of 1 metre. Stippling represents severe inundation, vertical hatching represents moderate inundation (Figure 6 taken from Sullivan 1990).

80. Likely physical and socio-economic impacts of sea level rise for the Vanimo area include:  Increase in incidence and duration of flooding;  Loss of land for housing and agriculture;  Loss of fresh water through saline incursion into groundwater;  Indirect impacts on fishing resources through changes to nursery mangrove communities;  Damage to roads and other infrastructure, including sewerage, stormwater systems and water supply systems; and  Direct (storms affecting human safety and nutritional impacts due to loss of food sources) and indirect (increase in vector borne diseases) impacts on health. 81. There are a range of impacts anticipated due to increased greenhouse gas emissions. The following information is based on information contained in the Intergovernmental Panel on Climate Change (IPCC), Climate Change 2007 Synthesis Report Summary for Policy Makers including levels of confidence about the changes that may occur. The IPCC Special Report on Emissions Scenarios (SRES 2000) projects an increase of global greenhouse gas emissions (GHG) by 25 to 90% (c02 –eq) between 2000 and 2030. “Continued GHG emissions at or above current rates would cause further warming and induce many changes in the global climate system during the 21st century that would very likely be larger than those observed during the 20th century”. 82. Projected changes to climate on a global scale but varying regionally include:  Global warming of about 0.2% per decade;  Sea level rise (m at 2090-2099 relative to 1980-1999) scenarios include 0.18-.80;

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 Very likely increase in frequency of hot extremes, heat waves and heavy precipitation;  Likely increase in tropical cyclone intensity; and  Very likely precipitation increases in high latitudes and likely decreases in most subtropical land regions. 83. Some systems and sectors likely to be especially affected by climate change include:  Coastal: mangroves and salt marshes due to multiple stresses;  Low lying coastal systems, due to threat of sea level rise and increased risk from extreme weather events; and  Human health in populations with low adaptive capacity. 84. This IEE is based upon preliminary assessments of presently available data that do not take account of the most recent predictions of the potential effects of climate change, in particular sea level rise. It is recommended that during the detailed design of any future development to facilitate trade and investment in Vanimo, a detailed assessment of the forecast impacts of climate change be undertaken with a focus on sea level rise and the impact on existing and proposed infrastructure and development. This is not a significant concern for the development of the Border Administration and Wutung Administration due to the elevation above sea level. 3.2 Biological Resources

3.2.1 Flora and Fauna

85. Paijmans describes the vegetation in the Wutung – Vanimo area as being “Medium- crowned lowland hill forest”, which is the most common forest type in the hills and mountains below 1400m and is very mixed floristically. The canopy is relatively uniform in crown sizes (8-15m), height (25-30m), and closure (60-80%). Most common species include Pometia, Canarium, Anispotera, Cryptocarya, Terminalia, Syzygium, Ficus and Celtis. 86. On the coastal flats closer to Vanimo, vegetation is described as “Open forest on plains”. This vegetation type is typically on back plains subject to prolonged wet-season inundation and on unstable riverside plains subject to frequent short-lived flooding. The canopy has many large gaps and is irregular in height and closure. Emergents are large crowned and widely spaced. Common species include Rattan and Sago Palm in the understorey, Pometia, Octomeles, Alstonia, Terminalia, Planchonia, Bischofia, Cananga, Teysmanniodendron, Intsia and Nauclea.

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Figure 8: Vegetation Communities13

87. The project sites, both at the Wutung border post and in Vanimo are disturbed sites with very little vegetation present. The border post site is presently cleared of vegetation and has a range of infrastructure in place. Likely future development sites in Vanimo are also disturbed with little vegetation and some infrastructure already in place. Development of the border post and likely future development within Vanimo will not result in pressure to clear areas of vegetation that are of ecological value. 88. No fauna survey was conducted therefore species assemblage of wild fauna in the project area is not known. Information from locals indicated presence of rats, snakes, and various species of birds. The customary land holds much of the natural wildlife and is a distance away from the developed area. The project area has no wild fauna species of significant value for protection under the Environmental Act 2000 and its relevant regulations of 2002, also confirmed by the Sandaun Provincial Environment Advisers assessment of fauna in the area. The project is not expected to have a significant impact on any species or their habitat. 3.3 Socio-Economic Resources

3.3.1 Wutung Village

89. Wutung is the nearest village to the PNG – Indonesia border. Some sub-clans in Wutung still own land within Indonesian territory as far as the Tami River. Tami River has been the natural border shared by the people of Wutung and the Skou villages of Skou Sai, Skou Mabo and Skou Yambe.

Population 90. Wutung had a population of 526 in 1990. This rose to 666 in 2000. The annual population growth rate between 1990 and 2000 was 2.3%. For the purpose comparison with other West Coast villages, Wutung and Mushu both had annual population growth rates of 2.3%. This was slightly lower than Waromo (2.6%), higher than Yako (1.7%) but

13 Paijmans, K. 1975, Explanatory notes to the vegetation map of Papua New Guinea / [by] K. Paijmans Commonwealth Scientific and Industrial Research Organization, Melbourne Page 20

ADB TA7125 PNG Pilot Border Trade & Investment Development Report – IEE Report May 2009 much lower than Lido (5.3%)14. The 1990 and 2000 census figures for the west coast villages and the annual population growth rates are shown in below.

Table 2: 1990 & 2000 Census Figures for West Coast Villages and Growth Rates Ward Constituent 1990 Population 2000 Population Growth Rate (%) Villages/Hamlets Male Female Total Male Female Total Wutung Wutung 257 269 526 328 338 666 2.3 Mushu Mushu 115 124 239 93 83 176 2.3 Fichin NA NA NA 60 65 125 Yako Yako 185 194 379 226 223 449 1.7 Waromo Waromo 410 382 792 521 500 1021 2.6 Lido Lido 508 460 968 651 546 1197 5.3 Ilolo NA NA NA 133 76 209 Karanas Pit NA NA NA 119 111 230

91. The next table shows further indicators of the citizen population of the five West Coast villages. Some of these indicators are useful in showing incidences of poverty, particularly the proportion of people over 10 years of age who had ever been to school and who have completed Grade 6 or Grade 10. Other indicators, such as the high proportion of the economically active people in all the villages who are employed, may be misleading. The census question probably asked for the number of people in the households who were in wage employment but people took it to mean anything (other than wage employment) they were doing to gain cash incomes.

14 This figure was calculated using the 2000 census figures for Lido ward, which includes Ilolo and Karanas Pit on the assumption that these Census Units were included as part of Lido in 1990. Page 21

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Table 3: Socio-Economic Indicators of West Coast Population Indicators Wutung Mushu Yako Waromo Lido

M F T M F T M F T M F T M F T Proportion aged less than 38.8 39.2 39.0 51.6 46.3 49.0 39.6 42.2 40.8 40.1 37.6 38.9 45.8 39.4 42.9 15 years Proportion 65 years and over 3.7 4.2 3.9 3.9 2.7 3.3 2.7 4.0 3.3 2.1 2.0 2.1 2.9 3.0 3.0 Proportion 15 yrs & over who 54.6 56.3 55.5 55.6 61.5 58.7 57.8 64.3 61.0 58.4 62.5 60.5 57.2 63.2 60.2 are married Proportion heads of 84.9 15.1 100 72.9 27.1 100 88.6 11.4 100 85.1 14.9 100 81.1 18.9 100 households Proportion who are migrants 34.2 34.3 34.2 10.4 9.2 9.8 11.4 15.9 13.7 2.9 2.6 2.7 18.9 19.8 19.3 Proportion aged 5-29 23.3 21.0 22.2 31.0 45.5 37.9 32.5 35.0 33.7 36.5 36.3 36.4 34.6 25.1 36.2 attending school Proportion aged 10 yrs+ 87.1 80.2 83.7 85.7 78.3 81.7 87.6 82.5 85.0 90.2 88.3 89.2 85.3 82.1 83.8 who have been to school 82.9 82.3 82.6 62.7 47.7 54.8 82.3 75.0 78.7 82.7 71.4 77.0 67.1 74.3 70.4 - who completed 34.8 17.7 26.6 18.6 6.2 12.1 33.3 11.8 22.7 26.6 18.6 22.6 17.0 12.4 14.8 Gr. 6 - who completed Gr. 10 Proportion aged 15 yrs+ with other 10.6 3.9 7.2 12.2 5.1 8.5 11.8 6.2 9.1 10.6 3.8 7.2 13.0 8.4 10.7 educational qualifications Proportion aged 10 yrs+ who are literate 94.4 86.8 90.6 94.6 76.9 85.2 91.9 90.1 91.0 91.1 87.1 89.1 80.6 79.7 80.2 in at least one language Proportion 10 yrs+ who are 30.7 28.6 29.6 82.6 87.7 85.4 41.4 28.3 34.8 39.2 43.6 41.4 41.9 27.7 35.1 economically active Proportion of economically active who are 91.9 100 95.8 98.7 100 99.4 89.2 100 93.6 100 99.4 99.7 99.1 99.3 99.2 employed Proportion employed in 5.9 0.0 2.9 0.0 1.1 0.6 3.4 0.0 1.9 0.0 0.0 0.0 0.9 0.0 0.5 education industry Proportion employed in 0.0 0.0 0.0 1.3 0.0 0.6 1.7 4.4 2.9 0.0 0.0 0.0 0.4 0.0 0.3 health industry

92. With the increase in population, the number of households has also increased. Wutung village had 79 households in 1990. This increased to 86 in 2000. At the time of our survey in late February 2009, this had increased to about 102 households. Some households in Wutung had about two or three families. If each of these families had their own households, there would be more than the estimated 102 households in Wutung now. The fact that more than one families live in one household has contributed to a higher average household size (7.7) in Wutung compared to the other West Coast villages. 93. This increase in population and the number of households is placing pressure on the environment. Greater population and number of households is leading to increased

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ADB TA7125 PNG Pilot Border Trade & Investment Development Report – IEE Report May 2009 pressure for a more sustainable and sanitary means of effluent disposal. Population growth is also leading to greater demands for improved access to education and health services and more employment and business opportunities, all of which are reason for projects arising out of this PPTA.

Livelihood 94. Most people in Wutung rely on subsistence gardening, fishing and hunting for their livelihoods. According to the 2000 census, 87.2 percent of Wutung households were engaged in growing food for their own consumption. Members of Hlongta clan make their gardens on their land within Indonesian territory. This requires them to walk from the village to their gardens almost every day. However, when there are problems between Indonesian soldiers and elements of the OPM15, they are stopped from going to their gardens and have to look for alternative sources of food. Members of Taleng clan make their gardens up in the mountains or on the narrow coastal strip. Not many gardens are along the road between Wutung and Mushu so it can be assumed that Honia sub-clan members were gardening in areas well away from the road. Some people even make gardens within the village. Sweet potato, cassava and aibika (greens) were seen growing in small plots in the village. 95. The existence of gardens within or on the edges of the village could indicate that there are people who do not have the time to go far from the village to make gardens on better land. This would lend support, to what one Wutung woman said in a short discussion, that the existence of Indonesian shops near the border was making Wutung people lazy. A lot of people now spend almost every day of the week up at Ruko and have forgotten about making gardens, fishing and hunting. These people, according to this informant, now rely on cheap Indonesian rice and noodles. Those who grow some garden food and vegetables sell some of their food to those who do not have gardens. This practice of selling food to others, even relatives, was blamed on the “Asian influence” that Wutung people were now exposed to. 96. Production of cash crops is not an important income generating activity in Wutung. This is largely because of the decision of colonial authorities to maintain a 15-kilometre quarantine buffer zone which forbade Wutung and other West Coast villagers from growing cash crops. However, in the recent past some people began growing cash crops like cocoa and vanilla. One young man was drying cocoa beans at Wutung at the time of the survey. When asked where he would sell his dried cocoa beans he said he would take them to Indonesian buyers at the border. These Indonesian buyers would buy the dried cocoa beans for K4.50 per kilogram. This was a better price than what PNG buyers offer.

3.3.2 Cultural Heritage

97. The border area is predominantly raised dead coral boulders. Next to the border mark is a preserved old wave cut platform, notch and cliff. This is a site of significant cultural heritage to local people as a burial site16. The old wave-cut platform is about 5 m wide before it drops about 20 m to the current wave-cut platform. There are no other known sites of cultural heritage significance, however should, during project works being undertaken, sites of possible heritage significance be discovered or exposed, all work shall cease, the Provincial Administration and DEC shall be informed and any actions they require will be undertaken. The projects are not expected to have a significant impact on sites of cultural heritage significance.

15 A secessionist movement in West Papua. 16 EU EDF 8 – SOPAC/EU Project Report 84 Reducing Vulnerability of Pacific ACP States: Papua New Guinea Technical Note – Disaster Risk Assessment (Especially Tsunami) of the Vanimo Area, West Sepik Province May 2007 Page 23

ADB TA7125 PNG Pilot Border Trade & Investment Development Report – IEE Report May 2009

4. Environmental Impacts & Mitigation

98. This section discusses the potential environmental impacts of the construction of border facilities at the Wutung Border post, installation of septic tanks in Wutung Village and a broad initial assessment of possible developments in Vanimo in accordance with road maps for trade and investment development and identifies mitigation measures to minimize the impacts in the construction and operational phases. The main issues relate to impacts such as noise, dust, and traffic interruption during construction, the potential impacts of septic tanks on groundwater and the potential future impacts of climate change on new development to improve trade and investment in Vanimo. 99. Each environmental factor which could be affected by implementation of the project has been addressed, and the scope and importance of each potential environmental impact assessed. The following definitions of significance of impact have been used in the environmental impact screening (ADB, 1997).  No impact - a potential impact is assessed as having no impact if the project activity is physically removed in space or time from the environmental component, or if the impact is so small as to be un- measurable (i.e. negligible). No mitigation measures are required for project activities that will create „no impact‟.  Minor impact (positive or negative): For environmental resources: the project affects a specific group of localized individuals (plants and animals) within a population or a habitat over a short time period (one generation or less), but does not ultimately affect other trophic levels or the population itself; or For social values: activities of resource users or local communities in the project area are not affected measurably beyond a minor disturbance of resource use or local activities, from which recovery is relatively quick.  Moderate impact (positive or negative): For natural resources: The project affects a portion of a population or habitat and may bring about a change in abundance and/or distribution over one or more generations, but does not threaten the integrity of that population, or any population dependent upon it; or For social values: a short-term effect upon the social and economic well being of resource users or local communities using the project area may also constitute a moderate impact, but from which recovery is expected within 3-6 months.  Major impact (positive or negative): For natural resources: The project affects an entire population or species in sufficient magnitude to cause a decline in abundance and/or change in distribution beyond which natural recruitment (reproduction, immigration from unaffected areas) would not return that population or species, or any other populations or species dependent upon it, to its former level within several generations; or For social values: the project affects a subsistence or commercial resource use, business activity, or social behavior to the degree that the well being of the user or local community is affected over the long term.

100. Determining the scale of impact depends on (i) spatial scale of the impact (site, local, regional, or national / international); (ii) time horizon of the impact (short, medium, or long term); (iii) magnitude of the change in the environmental component brought about by the project activities (small, moderate, large); (iv) importance to local human populations; (v) compliance with international, national, provincial, or district environmental protection laws, standards, and regulations; and (vi) compliance with guidelines, policies, and regulations of Papua New Guinea and ADB.

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101. Where potential major negative impacts are identified, mitigation measures are developed to reduce them to acceptable levels. Where this is not possible, major negative impacts can act as a trigger for further detailed environmental impact assessment. 102. Mitigation measures have been developed according to the following hierarchy: i. The first priority is to make changes to the project design or location during the pre-construction phase to avoid the potential impact; ii. The second priority is to make changes to the project design or location, or to implement other measures to minimize the scale or magnitude of the impact, or confine it to less sensitive areas; iii. The third priority is to implement measures to mitigate any residual impacts to an acceptable level of impact; and iv. The fourth and final priority is to compensate any residual impacts through „in kind‟ compensation or monetary compensation. 103. The environmental screening (Table 5) for the project identifies the range of potential environmental impacts that could occur from the construction, rehabilitation and maintenance activities proposed. Where the environmental impact is deemed to be major (or significant) mitigation measures are provided, generally to be incorporated into the project design documents. 104. A summary of the environmental impacts is included as Table 4.

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Table 4: Summary of Environmental Impacts Project activities/actions Damage to the Environment Recommended Feasible IEE: Potential impact if unmitigated Supplemental affecting environmental Protection Measures Information resources and values No Minor Moderate Major Impact Impact Impact Impact

PRE-CONSTRUCTION PHASE

Surveying and demarcation of 1. Some minor loss of vegetation 1. Minimize vegetation removal to  facilities during demarcation facility immediate corridor of works boundaries Site clearance, digging, 1. Accidental discovery of 1. Cease activity immediately;  Actual significance of excavations archaeological assets, sites or 2. Inform Provincial Administration effect unknown resources and DEC. 3. Undertake all actions required by above Mobilisation of Contractor, 1. Social disruption 1. Village protocols discussed and  To be implemented presence of construction worker awareness provided as part of prior to start of workers, associations with mobilization training construction activities local people 2. Contractor to ensure workers and immediately after actions outside camp/site are Contractor controlled and village rules, code of mobilization conduct observed 3. Signage and security at campand work sites i.e. prohibition on unauthorised people (especially children) entering camp 2. Spread of STIs and HIV/AIDS 1. Implementation of awareness and  To be implemented prevention program – contractor prior to start of 2. Implementation of HIV/AIDS construction activities awareness and prevention program – community (villages) CONSTRUCTION PHASE

Operation of construction plant 1. Emission of exhaust from vehicles 1. Maintain const. equipment  and vehicles generating and machinery 2. Prohibition of use of equipment emissions 3. Dust from exposed stockpiles of that causes excessive pollution (e.g. building materials. generates smoke) 3. Vehicles transporting dust- producing material not overloaded, provided with tail-boards and side- boards, and adequately covered 4. Material stockpiles located in sheltered areas and to be covered Site clearance, digging, 1. Accidental discovery of 1. Cease activity immediately;  Actual significance of excavations archaeological assets, sites or 2. Inform Provincial Administration effect unknown

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Project activities/actions Damage to the Environment Recommended Feasible IEE: Potential impact if unmitigated Supplemental affecting environmental Protection Measures Information resources and values No Minor Moderate Major Impact Impact Impact Impact

resources and DEC 3. Undertake all actions required by above Operation of construction plant 1. Noise in community 1. Construction vehicle exhaust  BDA and Provincial and equipment creating noise 2. Impacts on construction workers systems and noisy equipment will be Administration to maintained to minimise noise assist Contractor in 2. Contractor will develop a schedule coordinating with of operations with village chiefs and communities BDA to identify days of no work and hours for certain activities 3. Limit noisy construction activities to day time hours, i.e. construction activities prohibited between 7pm and 6am 4. Agree works schedule with village leaders 5. Provide workers with noise abatement equipment (ear-muffs etc) 6. Complaints will be addressed by Contractor Potential for contribution to 1. Impacts on rainfall, groundwater 1. Design to accommodate extreme  climate change depletion, or carbon emissions not weather events and increased rainfall expected and run-off. 2. The project will not affect risk of, or induce, climate change. 3. Unlikely to be impacts of climate change on the project – ie sea level rise. Works in, or adjacent to, rivers 1. Construction materials are washed 1. Construction works in areas of  and streams and in the vicinity out into receiving waters. rivers, especially riverbanks, streams of the coast 2. Reduction in river and coastal and the coast to be undertaken with water quality extreme care 2. Use of silt control devices and sediment traps/fences during construction activities. These to be cleaned and dewatered 3. Minimise size and duration of cleared areas and undertake progressive re-vegetation of cleared/work areas 4. Avoid clearing activities and excavation activities during rainy season where possible 5. Good design used in all

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construction activities to minimise need for changes to natural gradients 6. No discharges to rivers, surface waters, intertidal or coastal areas 7. No dumping, disposal or storage of spoil in streams, rivers or coastal area 8. Spoils and stockpiles will not be located near waterways, the coast, on slopes, or within 15m of rivers 9. Placement of diversion ditches around stockpiles 10. Abstraction from, or pollution of, water resources and coastal waters not permitted 11. Debris, spent fuel or oil, waste material not to be dumped along the coast or in or near streams or rivers 12. All waste materials (such as above) and chemicals will be stored in secure containers away from the coast, surface waters or rivers Clearing, grubbing, cut and fill 1. Soil erosion & silt generation 1. Stockpiles on un-used or non  activities 2. Increased runoff / erosion agricultural land 3. Sediment contamination of rivers 2. Erosion monitored and rapid 4. Gravel extraction from rivers leads stablilisation done as required for to erosion unexpected events 5. Erosion on slopes, embankments 3. Slope areas revegetated as quickly as possible 4. Uncontrolled tipping of soils or any other materials not permitted Accidental spills of hazardous 1. Oil and other hazardous chemicals 1. Detailed Emergency Response  substances and need for are spilled into the environment Plan (as part of EMP) prepared by emergency response resulting in pollution Contractor to cover hazardous 2. Hydrocarbon leakage / spills from materials/oil storage, spills and construction camps / workshops accidents 3. Accidents placing people at risk 2. Chemicals will be stored in secure containers away from the coast, surface waters or rivers 3. Chemicals stored in area or compound with concrete floor and weatherproof roof 3. Spills will be cleaned up as per emergency response plan 4. Ensure all construction vehicles

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and plant are well maintained 5. Accidents reported to police and Provincial Administration within 24 hours Encroachment into significant 1. Impacts on flora and fauna 1. There are no significant ecological  Construction ecological habitat habitat within, or likely to be affected activities will occur in by, the project already cleared and 2. Contractor responsible for providing disturbed areas. information to workers and imposing Minimal clearing of sanctions regarding harm to wildlife native vegetation is and felling of trees (not requiring to be required. cleared) 4. Camp, equipment and stockpiles not to be located in ecologically important or sensitive areas 6. Progressive re-vegetation to be carried out in all areas disturbed by the project with fast-growing, native species 7. Contractor to supply sufficient cooking fuel to avoid use of local timber or felling of trees Encroachment into historical / 1. Effects on cultural values 1. No known sensitive culturally areas  cultural sites are located within the project area or close enough to be influenced by it. Presence of vehicles and 1. Traffic and access disrupted 1. Traffic management plan to be  The project can equipment in villages, traffic during construction prepared by Contractor contribute to local and safety issues 2. Traffic safety affected 2. Notify villages in advance of poverty reduction schedule and duration of works through provision of 3. Consultations and care taken to income generation minimise disruptions to access opportunities such as 4. Install temporary access to affected construction properties where required employment and provision of goods 5. Signage used in vicinity of works and services to 6. Safe access across work sites workers provided for the public 7. Community awareness ascertain village concerns regarding traffic management matters

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ADB TA7125 PNG Pilot Border Trade & Investment Development Report – IEE Report May 2009

Construction activities causing 1. Interference with existing 1. Consult with Works & Telekom  accidental damage to existing infrastructure PNG staff to minimize physical services impacts on public infrastructure and disruption to services 2. Any water supply pipelines or other infrastructure services likely to be affected by the project will be re- routed and/or reinstated

Presence of construction 1. Various social impacts including: 1. Village protocols discussed; worker  workers and construction 2. Social disruption awareness as part of mobilization camps 3. Possibility of conflicts or 2. Contractor to ensure workers antagonism between residents and actions outside camp/site are Contractor controlled and village rules, code of 4. Spread of communicable diseases conduct observed including STIs and HIV/AIDS 3. Signage and security at camp i.e. 5. Children are exposed to sexual prohibition on unauthorised people exploitation in camps (esp. children) entering camp 6. Impacts on general health and 4. Workers to respect village and safety landowner boundaries 5. STIs and HIV/AIDS awareness program for construction force and villages to be provided 6. A communications and complaints plan will be used for liaison and correction among stakeholders 7. Contractor to recruit Environmental, Health & safety Officer 8. Contractor to provide health facilities and 1st Aid post in camps and to provide safety equipment for workers 9. Contractor to provide adequate and safe drinking water in camp 10. Protection for the public in vicinity of work sites and safe access across work sites provided for the public 11. Roads to be kept free of materials including rubbish 12. No damage to property and resources

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ADB TA7125 PNG Pilot Border Trade & Investment Development Report – IEE Report May 2009

Waste generated at 1. Contamination of local water 1. Contractor to prepare waste  construction camps supplies through waste management plan (as part of EMP) 2. Discharges of waste-waters / 2. All wastes from work sites and sewage from camps to rivers and camps to be disposed of in approved smaller streams landfill / areas 3. No site-specific landfills at camps 4. No wastes to be dumped in waterways or close to the coast 5. Contractor ensures wastes not discharged to water bodies or rivers and that all wastes disposed of in proper areas 6. Adequate drainage and proper handling of sewage and other liquid wastes to prevent pools that could encourage disease vectors 7. Construction camps will have sanitary latrines 8. Contractor will provide sufficient training in appropriate waste disposal methods 9. Waste will be removed from camp (to approved dump site) on a regular basis Construction of camps and 1. Stress on resources and existing 1. Site camp and office located, if  offices and use of water and infrastructure possible, in areas better supplied with electricity supplies infrastructure and services 2. Contractor to supply temporary facilities i.e. health post, accommodation, water and electricity, telecommunications, and sanitation Exposure of asbestos during 1. Construction workers and villagers 1. Contractor to prepare a Hazardous  While identified as demolition of existing buildings exposed to asbestos materials when Materials Assessment and Work Plan a major impact, older structures are demolished. that shall: provided correct (a) outline the identification of any procedures are hazardous materials, including asbestos; followed, asbestos (b) particularise a method of safely materials can be disposing of the asbestos in accordance safely handled and with the Code of Practice for the Safe disposed of. Removal of Asbestos 2nd Edition

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ADB TA7125 PNG Pilot Border Trade & Investment Development Report – IEE Report May 2009

(Australian National Occupational Health and Safety Council 2002 (2005)17; (d) describe the method of demolition; (e) describe the precautions to be employed to minimise any dust nuisance; and (f) describe the disposal methods for hazardous materials. 2. Hazardous Materials Assessment and Work Plan to be incorporated into the EMP prepared by the contractor and approved by the Provincial Administration, Department of Health and BDA. OPERATIONS PHASE

Operation of vehicles creating 1. Hydrocarbons, Carbon Monoxide, 1. Forecasts of traffic growth indicate  emissions Nitrous compounds, Sulphur Dioxide that emissions will be low and not and particulate matter increase have a noticeable effect on air quality through increased traffic 2. Landscaping along roadside to reduce dust impacts Waste disposal from new 1. Waste disposal from vehicle wash 1. Vehicles entering Papua New  Proposal will result facilities. bay. Guinea land shall be bathed to on an improvement 2. Effluent waste from facilities. remove foreign bodies as directed by on the current 3. Stormwater drainage and surface the quarantine laws. The disposal of situation. runoff. these substances shall be screened 4. Other hard waste. and stored away in septic tanks; to be treated with chemicals later in the

process. Effluent after treatment is piped into an underground trench pit and the sludge is then removed by a mobile tanker to a recognized discharge station for further treatments and disposal. 2. The current existing facilities do not have an existing sewerage management facility (anaerobic oxidation treatment ponds) other than a single house septic tank system. Effluent waste will be managed in the

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ADB TA7125 PNG Pilot Border Trade & Investment Development Report – IEE Report May 2009

same manner as point 1 above. 3. Stormwater drain out facilities to minimize destruction to the nearby environment in the cause of the stormwater runoff will be identified and constructed. Possible corridors in the nearby environment shall be identified and channels of surface runoffs be diverted to these corridors. This approach shall prevent further destruction to the existing nearby environment and maintain the current surface runoff path. 4. Outdoor waste facilities will be provided to maintain the cleanliness of the area and minimise the use of littering into the existing nearby environment. These will be maintained and serviced by the BDA or Provincial Administration.

Creation of dust pollution 1. Use of the facility results in 1. Roads and parking bays at the  Proposal will result generation of dust, impacting on air border administration have so far had on an improvement quality. minimal impact in producing dust on the current pollution. The road access facilities situation. are sealed with bitumen surfacing which does not have a major issue over this concern. The proposed development shall also involve finish surfacing either bitumen finishing or well paved surfaces using required concrete pavement blocks at all pedestrian pathways and on other outdoor amenities as necessary. Increased traffic 1. Increases in noise nuisance for 1. Low traffic forecasts, low population  Proposal will result residents density means noise levels will not on an improvement 2. Increased traffic volumes and significantly increase on the current higher speeds leads to accidents 2. General safety will be improved situation. through provision of pedestrian access route to Wutung Village. Seismic event 1. Seismic event (earthquake) 1. Appropriate building design and  Considered minor causes damage to border facilities. building materials utilized in impact due to very accordance with building regulations. small risk of seismic event of magnitude great enough to

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ADB TA7125 PNG Pilot Border Trade & Investment Development Report – IEE Report May 2009

cause impact due to underlying stable geology. Installation of Septic Tanks and Toilets in Wutung Village

Installation of septic tanks and 1. Faecal contamination of 1. Faecal contamination of  Proposal will result toilets in Wutung Village. groundwater. groundwater from septic tanks occurs on an improvement in poorly drained soils when on the current waterlogging of the soil occurs and situation. overland flow causes effluent from absorption trenches to flow directly down wells. 2. The contractor will design each septic tank specifically for the location to take into account the depth of the ground water in each location. 3. Septic tank absorption trenches will be shallow trenches and located in well drained soils. This will ensure faecal contaminants are treated by soil microbes and do not contaminate groundwater. 4. Septic tank installations are to be approved by the Provincial Administration and Department of Health prior to installation. 5. Detailed soil testing is to occur prior to installation of septic tanks to determine specific soil characteristics at each site and enable septic tank and absorption trenches to be designed for each site. Future activities to improve trade and investment in Vanimo

Development of infrastructure 1. Various environmental impacts 1. Relevant environmental  Level of in Vanimo to attract and 2. Impact of climate change on assessment to be undertaken and environmental effect enable new development. infrastructure – eg sea level rise. government approvals to be sought at will not be known time of infrastructure development. with certainty until 2. Comprehensive assessment of the exact nature of forecast impacts of climate change on infrastructure Vanimo and surrounding villages to be development is undertaken to determine the long term known. viability of infrastructure provision and development in the low lying areas of

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ADB TA7125 PNG Pilot Border Trade & Investment Development Report – IEE Report May 2009

Vanimo. This assessment will focus on the impact of sea level rise and increasing intensity of storm events and the impact this will have on the built environment.

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ADB TA7125 PNG Pilot Border Trade & Investment Development Report – IEE Report May 2009

4.1 Design / Pre-Construction Phase

105. Pre-construction impacts are limited to the following activities: vegetation removal during surveying and demarcation of facilities; site clearance, digging and excavations; and mobilisation of contractor, presence of construction workers, associations with local people. 106. Minor impacts upon terrestrial habitats and flora of the subproject area are expected as a result of the surveying and demarcation of the facilities to be constructed. As the facilities are to be constructed within an existing developed foot[print, surveying and demarcation will cause minor degradation of local ecology through the clearance of small areas of vegetation. 107. Any site clearance, digging and excavation activities undertaken during pre- construction can un-earth archaeological sites or resources. In the event this occurs, work shall cease immediately and the authorities (Provincial Administration, BDA and DEC) shall be informed. 108. Activities shall not re-commence until the authorities have signed-off that the site/resources have been dealt with appropriately and that work may continue. The Contractor shall be responsible for complying with the requirements of authorities.

4.1.1 Project Disclosure

109. At this stage, statutory compliance with Environment Act 2000 (EA 2000) will be made, including notifying the project and design to the DEC (under Sec 48 EA 2000) where DEC will inform the Project whether Environmental Permits will be required. It is noted that the activities proposed do not fall into the category of activities that will require a permit under the act. Notification of the DEC will occur as part of the overall government approval process for the project.

4.1.2 Preparing Contractors to Address Mitigation Measures

110. During the detailed design phase and in preparation for the construction phase, the tender documents will be prepared to make sure that future contractors will be prepared and primed to cooperate with the implementing agency, project management, supervising consultants and local population in the mitigation of environmental impacts. 111. Tender documents and daft contracts will include relevant environmental mitigation measures and will require the preparation and approval of a final Environmental Management Plan before construction commences. 112. Furthermore the contractor will be primed by including the EMP and environmental assessments in the bidding and contract documentation. The contractor will, when necessary, be required to produce method statements and plans for: (i) Temporary traffic management plan, (ii) Water supply re-provisioning plan, (iii) Materials management master plan, (iv) Noise and dust control plan, (v) Waste management plan, and (vi) Asbestos handling and disposal plan. 113. All the above will be agreed in advance with the Provincial Administration, BDA and other relevant Government Departments in the project preparation phase and in the contract documentation. The requirements in the contract will include full implementation of the EMP. The contractor would also be required to engage capable and trained staff or site agents to take responsibility for the environmental management at the working level and to audit the effectiveness and review mitigation measures as the project proceeds. The effective implementation of the EMP will be audited as part of the loan conditions and the executing agency will be prepared for this.

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4.2 Construction Phase

114. Specific environmental impacts and mitigation measures are outlined in Table 4. As indicated in that table, all environmental impacts either have no significant effect or a small effect, with the exception of exposure of asbestos during demolition of existing buildings, and can be adequately mitigated against.

4.2.1 Exposure of asbestos during demolition of existing buildings

115. Survey of the current housing stock at the Wutung Administration site indicated that asbestos sheeting is present in houses that are to be demolished and replaced. This poses a significant environmental risk that must be safely mitigated against. 116. Asbestos fibres are made up of many very fine fibrils, which can cause significant health risks when inhaled. Handling asbestos products causes tiny asbestos fibres to become airborne, where they can be inhaled and pass into the lungs. The most dangerous fibres are the smallest ones which are invisible to the naked eye, but which penetrate the deepest part of the lungs. 117. Asbestosis can be the result of inhalation of asbestos, causing a progressive scarring of the lung tissue. Lung cancer and mesothelioma are the two main forms of cancer that are associated with inhalation of asbestos fibres measuring between 3 – 8 micrometres in length. 118. Asbestos-related diseases can have a delay or lag up to 20 or 40 years between first exposure to the dust and onset of symptoms and detection of the disease. Asbestos disease can appear or progress even after a person is no longer exposed. Studies show that these products, if left undisturbed, are not a significant health risk provided the material is in reasonable condition. If the asbestos fibres remain firmly bound in a solid cement matrix, generally you do not need to remove or coat the fibro. Health problems usually occur when people are unaware of the hazards of working with fibro. The important point is to always work so there‟s no release of dust or small particles from asbestos material. 119. Provided that appropriate procedures are followed, asbestos can be handled and disposed of safely. 120. To mitigate against the risk of exposure to asbestos during demolition, the following measures are proposed. a) Contractor to prepare a Hazardous Materials Assessment and Work Plan that shall: (i) outline the identification of any hazardous materials, including asbestos; (ii) particularise a method of safely disposing of the asbestos in accordance with the Code of Practice for the Safe Removal of Asbestos 2nd Edition (Australian National Occupational Health and Safety Council 2002 (2005)18; (iii) describe the method of demolition; (iv) describe the precautions to be employed to minimise any dust nuisance; and (v) describe the disposal methods for hazardous materials. b) Hazardous Materials Assessment and Work Plan to be incorporated into the EMP prepared by the contractor and approved by the Provincial Administration, Department of Health and BDA.

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ADB TA7125 PNG Pilot Border Trade & Investment Development Report – IEE Report May 2009

121. The Code of Practice for the Safe Removal of Asbestos 2nd Edition (Australian National Occupational Health and Safety Council 2002 (2005) has been used as a suitable reference as it is a proven code of practice in terms of ensuring safe handling and disposal of asbestos. 4.3 Operational Phase

122. Specific environmental impacts and mitigation measures are outlined in Table 4. As indicated in that table, all environmental impacts either have no significant effect or a small effect and can be adequately mitigated against. In almost all cases the proposal will result in an improvement on the current situation. 4.4 Installation of Septic Tanks and Toilets in Wutung Village

4.4.1 Groundwater contamination

123. Installation of toilets and septic tanks in Wutung Village to improve current effluent management practices (which are non-existent) could, if poorly planned and designed, have the potential to contaminate groundwater with faecal contaminants. 124. Faecal contamination of groundwater from septic tanks occurs in poorly drained soils when water logging of the soil occurs and overland flow causes effluent from absorption trenches to flow directly down wells. Faecal contamination does not occur with faecal matter leaching from absorption trenches through soil into the groundwater as soil microbes decompose faecal matter that enters absorption trenches. This is provided an appropriate system is used for the conditions. 125. It is important however that absorption trenches are not constructed below the water table level. In the conditions that prevail in Wutung Village, with greater than 1 metre depth to water table this is unlikely to occur however it will be important that the contractor designs each septic tank specifically for the location to take into account the depth of the ground water in each location. 126. A precautionary design will require a shallow drainage field of multiple shallow absorption trenches linked to a single septic tank that services multiple (5 to 10) households. 127. This approach will require detailed soil testing to determine soil drainage properties and percolation rates and the necessary area for absorption trenches. This will require coordination by the West Sepik Provincial Administration and Department of Health. 128. To ensure that environmental risks are mitigated, septic tank installations are to be approved by the Provincial Administration and Department of Health prior to installation. 4.5 Future activities to improve trade and investment in Vanimo

129. The future activities that will be undertaken in Vanimo to improve trade and investment are likely to include development of infrastructure and buildings. The level of environmental effects of such development will not be known with certainty until the exact nature of infrastructure development is known. Relevant environmental assessment will need to be undertaken and government approvals obtained at the time of infrastructure development. 130. As potentially significant environmental impact on such infrastructure and buildings may be caused by the forecast impacts of climate change, particularly sea level rise, storm surge and wave run up due to increasing intensity of storm events. 131. While it is already proposed that a sea wall be constructed in Vanimo, it is strongly recommended that prior to any further infrastructure to improve trade and investment in Vanimo is developed, a comprehensive assessment of the forecast impacts of climate

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ADB TA7125 PNG Pilot Border Trade & Investment Development Report – IEE Report May 2009 change on Vanimo and surrounding villages should be undertaken to determine the long term viability of infrastructure provision and development in the low lying areas of Vanimo. This assessment will focus on the impact of sea level rise and increasing intensity of storm events and the impact this will have on the built environment. 132. It is expected that new businesses operations will be established. The environmental impact of these will be dependant on the nature of the business and any associated infrastructure. New economic activity as a result of the Project that would be classified as a 'Prescribed Activity' under the Environment Act 2002 is not anticipated. If such a business was to be established, it would require a permit from the Department of Environment and Conservation in Port Moresby which regulates all such business activity across PNG. Infrastructure development associated with economic growth will require a building permit from the West Sepik Provincial Physical Planning Board. The Board is responsible for taking into consideration PNG's environment protection legislation. They have the capability to discharge their responsibilities appropriately and have a reputation of doing so.

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ADB TA7125 PNG Pilot Border Trade & Investment Development Report – IEE Report May 2009

5. Public Consultation

133. The objectives of the stakeholder consultation process was to disseminate information on the project and its expected impact, long-term as well as short-term, among primary and secondary stakeholders, and to gather information on relevant issues so that the feedback received could be used to address these issues at early stages of project design. Another important objective was to determine the extent of the concerns amongst the community, to address these in the project implementation and to suggest appropriate mitigation measures. 5.1 Identification of Stakeholders

134. Stakeholders are people, groups, or institutions that may be affected by, can significantly influence, or are important to the achievement of the stated purpose of a proposed intervention. For this project stakeholders included the community living in the area, Vanimo and Wutung based business, locally elected representatives and government officials. 5.2 Consultation with Stakeholders

135. During the process of data gathering for the project, consultations were held at various levels, involving all key stakeholder groups and many individuals from diverse backgrounds. Consultations were in held in the form of (i) regular steering committee meetings; (ii) key informants with district administrators, sectoral program managers and senior desk officers at the provincial and district levels; (iii) group conversations with NGO‟s including Vanimo Chamber of Commerce & Industry, Provincial Red Cross and churches; (iv) focus group discussions; (v) house-hold surveys of indigenous communities from Vanimo to Wutung, migrant settlers, formal and informal business operators; and (vi) key national stakeholder workshop in Port Moresby. 136. As part of the TOR, a project and design program was required to mitigate the project‟s possible negative socioeconomic impacts. As part of the socioeconomic study, a series of consultations, interviews, and focus group discussions were conducted with Wutung leaders and members from 25 February – 17 March 2009 to identify possible negative impacts and develop with the community possible mitigation measures. 137. Areas investigated by the project team included: (i) community perceived benefits and risks of opening the border to commercial trade (ii) their opinions on whether they support the opening or not, (iii) opinions on how to facilitate the border opening, (iv) community development priorities, and (v) and willingness to pay for these priorities. 138. Focus group discussions were conducted with men, women, and youth groups in Wutung village with the results in Table 5.

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ADB TA7125 PNG Pilot Border Trade & Investment Development Report – IEE Report May 2009

Table 5: Summary Benefits and Risks Areas Men Women Youth Benefits Employment from Improved market Improved access to market stall owners by facilities to sell betel communication , ie., village men on the nuts, sausages, lamb mobile phones Indonesian side, ie., flaps security, interpreters Employed as casual Easy access to workers in the PNG shopping, ie., border facility clothes, cheaper rice Access to piped water Improved piped supply from the border water supply from the PNG border Issues/Risks Environmental concerns Encourage Uncontrolled flow of relating to poorly participation of village pornographic designed carwash women in prostitution materials to Wutung, facility at the PNG other coastal border villages, Vanimo town and other PNG provinces Concerns over being Government to earn excluded in the border from border opening development through taxes but community will not have any share of them Fear of terrorism Increased gun smuggling to PNG and marijuana trafficking to Indonesia Increase spending on Fear of loosing out Indonesian goods on income from rather than PNG current small family goods businesses Fear of increased HIV/AIDS 139. Overall, the different groups were in agreement that improved access to markets available at the border results in increased income for most Wutung households. Access to piped water from the PNG border facility was cited as another major benefit. For youth, the major benefits were listed as access to information through Indonesian mobile phones as well as source of cheaper clothing. 140. Men‟s issues focused on poor waste treatment facilities and exclusion of Wutung people from decision making on development plans at the border. Women and youths expressed concerns on social issues such as (i) increased prostitution at the border, (ii) flow of pornographic and sexual enhancement products to PNG, (iii) HIV/AIDS, and (iv) peace and order issues resulting from gun smuggling and drug trafficking. Concerns were expressed about loss of income by small individual businesses, i.e., cigarette vendors, barbecue stalls, wheelbarrow hire for goods transport, etc., when the border opens to commercial trade. 141. An analysis of the above focus group discussion results indicated that a partially opened border had benefited Wutung people through increased income and improved access to basic services. A trend that community members and leaders would like to continue. But there were very explicit social concerns that Wutung people had raised as well and that they would like the government to provide strong leadership and direction on.

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ADB TA7125 PNG Pilot Border Trade & Investment Development Report – IEE Report May 2009

5.3 Concerns Addressed

142. Suggestions from Wutung people to address broader concerns involving the project included installation of road signs and lighting as well as improved waste treatment. The men‟s group also highlighted the need to be included in decision making. Presently, this is addressed by the allocation of a seat in the Project Steering Committee for Wutung village and the facility improvements are being incorporated in the border facility design plan. 143. Common and specific community development priorities identified by Wutung community during individual interviews and focus group discussion are displayed in Table 6. Identifying these priorities is important for the project to take these into considerations and be included as much as possible in the proposed project design.

Table 6: Community Development Priorities Men Women Youth 1. Household connectivity to power

2. Regular water supply

3. Individual household toilet

4. Staffed and equipped village health centre 6. Portable 5. Assistance to mill to build keep at risk individual students in permanent school houses

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ADB TA7125 PNG Pilot Border Trade & Investment Development Report – IEE Report May 2009

6. Environmental Management and Monitoring

6.1 Environmental Management Plan

144. As noted in Section 4 it is the construction phase that has the potential to cause the greatest number of adverse impacts. These can be mitigated and/or avoided. 145. A specific EMP will be prepared by the Contractor and submitted to West Sepik Provincial Administration, BDA and DEC for review and approval prior to commencement of works. Table 7 includes a generic EMP which will be used as the basis for the Contractor‟s EMP. Costs have been included where these are known. A number of mitigation measures will be the responsibility of the Contractor who will be required to identify the best means for mitigating an impact as per the EMP, therefore these costs will be borne by the Contractor as part of the construction cost (IIC). 6.2 Environmental Monitoring

146. Environmental monitoring is a very important aspect of environmental management during construction and operation stages of the project to safeguard the environment. A preliminary environmental monitoring plan has been developed and is presented in Table 7. The contract documents will contain a list of all required mitigation measures and a time-frame for the compliance monitoring of these activities. The monitoring will comprise surveillance to check whether the contractor is meeting the provisions of the EMP and contract during construction. 147. The BDA and supervising contractor during project implementation will be required to: i. Develop an environmental auditing protocol for the construction period, and formulate a detailed monitoring and management plan; ii. Supervise the environmental monitoring regularly, and submit quarterly reports, the main parameters to be monitored are outlined in Table 7; and iii. Supervise the project road regularly, and submit quarterly reports based on the monitoring data and laboratory analysis report. The main parameters to be monitored by the contractor are outlined in Table 7. 148. A budget for the monitoring is based on US$6,000/month. The estimated cost of monitoring (for a period of 12 months) is US$72,000. It should be noted that there are no noise, air, water or emissions standards exist in Papua New Guinea, therefore monitoring will be based on observation and consultation rather than on testing or modelling. The monitoring is the responsibility of the BDA and the supervising contractor. 149. The following measures will be taken to provide an environmental compliance monitoring program during project implementation: i. The tender and contract documents will clearly set out the contractor‟s obligations to undertake the environmental mitigation measures as set out in Section 4 of this IEE and to be appended to contract specifications; ii. Where a cost will be incurred i.e. safe handling and disposal of asbestos, the recommended environmental mitigation cost should be included as an item in the Bills of Quantities. iii. This will ensure that there is specific environmental mitigation budget and that the measures will be implemented as required. During the procurement, contractors will be required to include these costs in their rates and present the mitigation cost as a line item in the Bill of Quantities. There will be an identified extra payment in the contract to ensure measures are costed and carried out; and

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ADB TA7125 PNG Pilot Border Trade & Investment Development Report – IEE Report May 2009 iv. Each contractor will recruit an Environmental Management Officer and Liaison Officer, who will be responsible for implementing the contractors‟ environmental responsibilities, and liaising with Provincial Administration. The EMO will also be responsible for health and safety aspects of work sites. 150. The project‟s environmental monitoring plan is provided in Table 7. The EMP will require that all events, complaints and other issues are logged and resolved as soon as possible. All records are to be copied to the BDA to ensure issues are being resolved. 6.3 Responsibilities for Environmental Monitoring

151. Specific responsibilities for environmental management and monitoring are identified in the Environmental Management and Monitoring Plan at Table 7 – under the column Impact Monitoring – Monitoring Responsibility. 152. Various responsibilities will fall to the Border Development Authority, Provincial Administration, Supervising Consultant and Contractor/s.

6.3.1 Proponent – Border Development Authority

153. The Border Development Authority, as the proponent, would be responsible for overall implementation of the requirements of the Project.

6.3.2 Supervising Consultant

154. The Supervising Consultant (SC) for the Project would be appointed to act on behalf of the Border Development Authority. Responsibilities of the Supervising Consultant include the following:  Develop an environmental auditing protocol for the construction period, and formulate a detailed monitoring and management plan;  Supervise the environmental monitoring regularly, and submit quarterly reports, the main parameters to be monitored are outlined in Table 7;  Supervise the project road regularly, and submit quarterly reports based on the monitoring data and laboratory analysis report. The main parameters to be monitored by the contractor are outlined in Table 7;  Monitoring the activities of the Contractor to ensure the effective implementation of the EMP during design, construction and operational phases of the Project;  Monitoring the implementation of environmental management measures during the construction phase, including undertaking auditing and compliance reporting of the contractor‟s EMP; and  Reporting to the BDA and Provincial Administration on the level of compliance achieved and what corrective actions have been taken.

6.3.3 Contractor

155. A Contractor is to be engaged to undertake the following construction activities for the Project:  implementation and compliance with the approvals, legislation, and EMP measures during the construction phase of the Project;  maintaining a complaints register and taking actions that are reasonable and practicable to investigate and address complaints;  undertaking routine maintenance inspections and keeping records of construction activities;

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 maintaining good relations and effective communication with the local community; and  implementation of erosion and sedimentation controls. 156. A „Duty of Care‟ would apply to all personnel working at the site. 157. It is proposed that this Environmental Management and Monitoring Plan would be attached to all tender documents provided to contractors and compliance with an approved Environmental Management and Monitoring Plan would be a condition of contract. Each main contractor would then be required to develop detailed EMPs focussing on each their specific responsibilities during construction. 158. The Contractor should prepare a Site Based Management Plan to document responsibilities and give effect to the EMP.

6.3.4 Environmental Management Officer

159. The Contractor would be required to appoint an Environmental Management Officer (EMO) to manage environmental issues during the construction phase. The EMO may have other duties in addition to their environment management role. The EMO would be delegated sufficient authority to ensure full compliance with the EMMP during the construction program. However, to further ensure compliance with the EMMP the Contractor‟s Project Manager would have final responsibility.

6.3.5 Additional Site Personnel

160. Community Consultation Facilitator: Responsible for organising community consultation, review of complaints register, improving community involvement/participation and implementing management actions in relation to social and economic impacts. 161. Site Engineer: Where necessary, involved in implementing, overseeing and providing input into implementation of mitigation measures. 162. Additional roles and responsibilities may be identified and added during the pre- construction stage.

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ADB TA7125 PNG Pilot Border Trade & Investment Development Report – IEE Report May 2009

Table 7: Environmental Management and Monitoring Plan IIC=Included in Contract (and specific means for mitigation to be identified and costed by Contractor); TBD=To be determined IMPACT MITIGATION IMPACT MONITORING Project activities Environmental Impact Mitigation measures to be included in EMP Mitigation Frequency and Mitigation Parameter to Monitoring means of Responsibility be monitored Responsibility Cost (US$) verification PRE-CONSTRUCTION PHASE

Surveying and 1. Some minor loss of 1. Minimize vegetation removal to immediate corridor of Contractor IIC Area of During survey Contractor; demarcation of vegetation during works vegetation; and activities - BDA facilities demarcation facility area of felled visual boundaries trees/vegetatio inspection n removal before, during and after Site clearance, 1. Accidental 1. Cease activity immediately; Contractor IIC Sites and/or During Contractor; digging, discovery of 2. Inform Provincial Administration and DEC. resources activities - stop BDA, DEC excavations archaeological assets, 3. Undertake all actions required by above discovered and work order sites or resources their protection issued; Site/resources dealt with appropriately Mobilisation of 1. Social disruption 1. Village protocols discussed and worker awareness Contractor, PA, Complaints of During BDA, PA Contractor, provided as part of mobilization training Village heads incidents activities - presence of 2. Contractor to ensure workers actions outside between checking construction camp/site are controlled and village rules, code of workers and records for workers, conduct observed villagers; complaints, associations with 3. Signage and security at campand work sites i.e. No. of children consultation local people prohibition on unauthorised people (especially children) entering camp; with workers entering camp Number and about effectiveness of protocols; signs Issues raised with CDS 2. Spread of STIs and 1. Implementation of awareness and prevention program Contractor, PA, STI/HIV/AIDS Prior to BDA, PA HIV/AIDS – contractor Village heads prevalence construction - 2. Implementation of HIV/AIDS awareness and Increased check prevention program – community (villages) awareness contractor about records, transmission consultation and prevention with employees, discussions with NGO

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ADB TA7125 PNG Pilot Border Trade & Investment Development Report – IEE Report May 2009

Operation of 1. Emission of exhaust 1. Maintain const. equipment Contractor IIC Air quality, Monthly or after Contractor; construction plant from vehicles and 2. Prohibition of use of equipment that causes emissions, complaint - BDA and vehicles machinery excessive pollution (e.g. generates smoke) dust, periodic visual generating 3. Dust from exposed 3. Vehicles transporting dust-producing material not particulate inspection; emissions stockpiles of building overloaded, provided with tail-boards and side-boards, matter; Any particulate materials. and adequately covered Use of matter and 4. Material stockpiles located in sheltered areas and to tarpaulins and smoke be covered loading of managed as vehicles; per EMP Stockpiles Site clearance, 1. Accidental 1. Cease activity immediately; Contractor IIC Sites and/or During Contractor; digging, discovery of 2. Inform Provincial Administration and DEC resources activities - stop BDA, DEC excavations archaeological 3. Undertake all actions required by above discovered and work order assets, sites or their protection issued; resources Site/resources dealt with appropriately Operation of 1. Noise in community 1. Construction vehicle exhaust systems and noisy Contractor IIC Adherence to Monthly or after Contractor; construction plant 2. Impacts on equipment will be maintained to minimise noise agreed complaint - BDA and equipment construction workers 2. Contractor will develop a schedule of operations with schedule; review creating noise village chiefs and BDA to identify days of no work and Complaints (no. schedule hours for certain activities logged with Consultation 3. Limit noisy construction activities to day time hours, resolution); (ensure i.e. construction activities prohibited between 7pm and Workers safety schedule being 6am equipment adhered to) 4. Agree works schedule with village leaders 5. Provide workers with noise abatement equipment (ear-muffs etc) 6. Complaints will be addressed by Contractor Potential for 1. Impacts on rainfall, 1. Design to accommodate extreme weather events and Contractor IIC Design of Visual; Contractor; contribution to groundwater increased rainfall and run-off. buildings Review rainfall BDA climate change depletion, or carbon and flooding emissions not records expected 2. The project will not affect risk of, or induce, climate change. 3. Unlikely to be impacts of climate

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IMPACT MITIGATION IMPACT MONITORING Project activities Environmental Impact Mitigation measures to be included in EMP Mitigation Frequency and Mitigation Parameter to Monitoring means of Responsibility be monitored Responsibility Cost (US$) verification change on the project – ie sea level rise. Works in, or 1. Construction 1. Construction works in areas of rivers, especially Contractor Silt control / Monthly or as Contractor; adjacent to, rivers materials are washed riverbanks, streams and the coast to be undertaken with sediment required; BDA, PA and streams and out into receiving extreme care fences installed after event in the vicinity of waters. 2. Use of silt control devices and sediment traps/fences and removed; Check designs; the coast 2. Reduction in river during construction activities. These to be cleaned and cleared / Visual and coastal water dewatered worked areas observation; quality 3. Minimise size and duration of cleared areas and revegetated; no Consultation undertake progressive re-vegetation of cleared/work excavation with users areas activities in 4. Avoid clearing activities and excavation activities rainfall events; during rainy season where possible location of 5. Good design used in all construction activities to building supply stockpiles; minimise need for changes to natural gradients storage 6. No discharges to rivers, surface waters, intertidal or location of coastal areas chemicals and 7. No dumping, disposal or storage of spoil in streams, fuels. rivers or coastal area 8. Spoils and stockpiles will not be located near waterways, the coast, on slopes, or within 15m of rivers 9. Placement of diversion ditches around stockpiles 10. Abstraction from, or pollution of, water resources and coastal waters not permitted 11. Debris, spent fuel or oil, waste material not to be dumped along the coast or in or near streams or rivers 12. All waste materials (such as above) and chemicals will be stored in secure containers away from the coast, surface waters or rivers Clearing, 1. Soil erosion & silt 1. Stockpiles on un-used or non agricultural land Contractor IIC Silt control / Monthly - visual Contractor; grubbing, cut and generation 2. Erosion monitored and rapid stablilisation done as sediment inspection BDA, PA fill activities 2. Increased runoff / required for unexpected events fences installed erosion 3. Slope areas revegetated as quickly as possible and removed; 3. Sediment 4. Uncontrolled tipping of soils or any other materials not cleared / contamination of rivers permitted worked areas 4. Gravel extraction revegetated; no from rivers leads to excavation erosion activities in 5. Erosion on slopes, rainfall events; embankments location of building supply stockpiles. Accidental spills of 1. Oil and other 1. Detailed Emergency Response Plan (as part of EMP) Contractor IIC Discharge of Monthly or after Contractor;

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ADB TA7125 PNG Pilot Border Trade & Investment Development Report – IEE Report May 2009

IMPACT MITIGATION IMPACT MONITORING Project activities Environmental Impact Mitigation measures to be included in EMP Mitigation Frequency and Mitigation Parameter to Monitoring means of Responsibility be monitored Responsibility Cost (US$) verification hazardous hazardous chemicals prepared by Contractor to cover hazardous materials/oil waste as per event or as Contractor, substances and are spilled into the storage, spills and accidents waste required - BDA, PA need for environment resulting 2. Chemicals will be stored in secure containers away management review and emergency in pollution from the coast, surface waters or rivers plan; EMP and approval of response 2. Hydrocarbon 3. Chemicals stored in area or compound with concrete emergency emergency leakage / spills from floor and weatherproof roof response plan; response plan; construction camps / 3. Spills will be cleaned up as per emergency response Ensure storage Visual workshops plan sites are using Inspection of 3. Accidents placing 4. Ensure all construction vehicles and plant are well existing storage people at risk maintained concrete base; facilities 5. Accidents reported to police and Provincial Spills cleaned Administration within 24 hours and area rehabilitated Encroachment into 1. Impacts on flora 1. There are no significant ecological habitat within, or Contractor IIC Check for Spot Contractor; significant and fauna likely to be affected by, the project unnecessary inspections; BDA, PA ecological habitat 2. Contractor responsible for providing information to vegetation monthly - visual workers and imposing sanctions regarding harm to clearance; inspection of wildlife and felling of trees (not requiring to be cleared) Progress of re- camp and work 4. Camp, equipment and stockpiles not to be located in vegetation of sites; ecologically important or sensitive areas work areas; Re-vegetation 6. Progressive re-vegetation to be carried out in all Adequate fuel activities as per areas disturbed by the project with fast-growing, native supplies in EMP; species camp; Consultations 7. Contractor to supply sufficient cooking fuel to avoid Training of with villagers use of local timber or felling of trees workers in and workers information Encroachment into 1. Effects on cultural 1. No known sensitive culturally areas are located within Contractor IIC Sites and/or During Contractor; historical / cultural values the project area or close enough to be influenced by it. resources activities - stop BDA, PA, DEC sites discovered and work order their protection issued; Site/resources dealt with appropriately Presence of 1. Traffic and access 1. Traffic management plan to be prepared by Contractor IIC No. of During Contractor; vehicles and disrupted during Contractor accidents or activities - BDA equipment in construction 2. Notify villages in advance of schedule and duration of events; Visual villages, traffic and 2. Traffic safety works Maintenance of inspection; safety issues affected 3. Consultations and care taken to minimise disruptions access; Consultations; to access Signage; Review of 4. Install temporary access to affected properties where traffic required management 5. Signage used in vicinity of works plan 6. Safe access across work sites provided for the public

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ADB TA7125 PNG Pilot Border Trade & Investment Development Report – IEE Report May 2009

Presence of 1. Various social 1. Village protocols discussed; worker awareness as Contractor, IIC + costs for HIV/STIs As required; Contractor; construction impacts including: part of mobilization Villages, PA program awareness Monthly or after BDA. PA workers and 2. Social disruption 2. Contractor to ensure workers actions outside campaign complaint - construction 3. Possibility of camp/site are controlled and village rules, code of implemented; EMO recruited; camps conflicts or conduct observed EMO recruited; Training antagonism between 3. Signage and security at camp i.e. prohibition on Training records; residents and unauthorised people (esp. children) entering camp implemented; Staff records; Contractor 4. Workers to respect village and landowner boundaries Provision of Visual 4. Spread of 5. STIs and HIV/AIDS awareness program for safety inspection; communicable construction force and villages to be provided equipment; Consultations diseases including 6. A communications and complaints plan will be used Signage and with villagers; STIs and HIV/AIDS for liaison and correction among stakeholders security to Checking of 5. Children are 7. Contractor to recruit Environmental, Health & safety prevent complaints; exposed to sexual Officer unauthorized Consultations exploitation in camps 8. Contractor to provide health facilities and 1st Aid post people entering with workers re 6. Impacts on general in camps and to provide safety equipment for workers camp; training health and safety 9. Contractor to provide adequate and safe drinking Signage water in camp installed as 10. Protection for the public in vicinity of work sites and required; safe access across work sites provided for the public 11. Roads to be kept free of materials including rubbish 12. No damage to property and resources

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ADB TA7125 PNG Pilot Border Trade & Investment Development Report – IEE Report May 2009

9. Waste will be removed from camp (to approved dump site) on a regular basis Construction of 1. Stress on resources 1. Site camp and office located, if possible, in areas Contractor, IIC Facilities Monthly, as Contractor; camps and offices and existing better supplied with infrastructure and services BDA (to constructed required and BDA and use of water infrastructure 2. Contractor to supply temporary facilities i.e. health approve plan) according to spot checks - and electricity post, accommodation, water and electricity, approved plan visual supplies telecommunications, and sanitation inspection

Exposure of 1. Construction 1. Contractor to prepare a Hazardous Materials Contractor, K480,000 Hazardous Spot checks Contractor, asbestos during workers and villagers Assessment and Work Plan that shall: DEC, BDA, PA Materials during this BDA, PA demolition of exposed to asbestos (a) outline the identification of any hazardous materials, to approve plan Assessment and activity existing buildings materials when older including asbestos; Work Plan occurring structures are (b) particularise a method of safely disposing of the approved and demolished. asbestos in accordance with the Code of Practice for the being Safe Removal of Asbestos 2nd Edition (Australian National implemented Occupational Health and Safety Council 2002 (2005)19;

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ADB TA7125 PNG Pilot Border Trade & Investment Development Report – IEE Report May 2009

Operation of 1. Hydrocarbons, 1. Forecasts of traffic growth indicate that emissions will Relevant Gov IIC Air quality; Monthly or as Relevant Gov vehicles creating Carbon Monoxide, be low and not have a noticeable effect on air quality Agencies Particulates required - Agencies emissions Nitrous compounds, 2. Landscaping along roadside to reduce dust impacts and smoke; consultation Sulphur Dioxide and No. complaints; and visual particulate matter incidents observations; increase through logged with Complaints; increased traffic resolution Waste disposal 1. Waste disposal 1. Vehicles entering Papua New Guinea land shall be Relevant Gov IIC Condition of 2 x year for 3 BDA from new facilities. from vehicle wash bathed to remove foreign bodies as directed by the Agencies waste year, mid-term bay. quarantine laws. The disposal of these substances shall management and post-eval. 2. Effluent waste from be screened and stored away in septic tanks; to be facilities; soil monitoring - facilities. treated with chemicals later in the process. Effluent after and water check designs; 3. Stormwater treatment is piped into an underground trench pit and samples in Visual drainage and surface the sludge is then removed by a mobile tanker to a vicinity of assessment; runoff. recognized discharge station for further treatments and waste Soil and water 4. Other hard waste. disposal. management sampling 2. The current existing facilities do not have an existing facilities sewerage management facility (anaerobic oxidation treatment ponds) other than a single house septic tank system. Effluent waste will be managed in the same manner as point 1 above. 3. Stormwater drain out facilities to minimize destruction to the nearby environment in the cause of the stormwater runoff will be identified and constructed. Possible corridors in the nearby environment shall be identified and channels of surface runoffs be diverted to these corridors. This approach shall prevent further destruction to the existing nearby environment and maintain the current surface runoff path. 4. Outdoor waste facilities will be provided to maintain the cleanliness of the area and minimise the use of littering into the existing nearby environment. These will be maintained and serviced by the BDA or Provincial

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ADB TA7125 PNG Pilot Border Trade & Investment Development Report – IEE Report May 2009

Creation of dust 1. Use of the facility 1. Roads and parking bays at the border administration Relevant Gov IIC Air quality 2 x year for 3 BDA pollution results in generation have so far had minimal impact in producing dust Agencies year, mid-term of dust, impacting on pollution. The road access facilities are sealed with and post-eval. air quality. bitumen surfacing which does not have a major issue monitoring - over this concern. The proposed development shall also visual involve finish surfacing either bitumen finishing or well assessment; paved surfaces using required concrete pavement Consultations blocks at all pedestrian pathways and on other outdoor or complaints amenities as necessary. Increased traffic 1. Increases in noise 1. Low traffic forecasts, low population density means BDA IIC Accidents and 2 x year for 3 BDA nuisance for residents noise levels will not significantly increase collisions; year, mid-term 2. Increased traffic 2. General safety will be improved through provision of Safety issues and post-eval. volumes and higher pedestrian access route to Wutung Village. discussed in monitoring - speeds leads to villages; consultation accidents Effectiveness and visual of traffic observations; calming Complaints; measures Collect road accident data

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ADB TA7125 PNG Pilot Border Trade & Investment Development Report – IEE Report May 2009

7. Findings and Recommendations

7.1 Findings

163. This IEE study was carried out during the PPTA 7125 (PNG). Essentially secondary data were used to assess the environmental impacts in a comprehensive manner and public consultation was carried out in order complete the environmental assessments and recommend suitable mitigation measures. The potential environmental impacts were assessed in a comprehensive manner. 164. The IEE report provides a picture of potential environmental impacts associated with the project and suitable mitigation measures have been recommended. In the event that any design details for the locations or scope of the project are changed the environmental assessment and EMP shall be reviewed and revised accordingly. 165. The project location does not include any protected areas or areas of conservation value, including primary forests, terrestrial reserves or community managed marine protected areas. The project will not create any impacts on cultural or heritage sites. 166. A screening has been undertaken (summary presented in Table 4) and has not identified any significant negative or adverse environmental impacts. 167. The most significant issue to be mitigated against is the safe handling and disposal of asbestos during demolition of old houses at the Wutung Administration site. 7.2 Conclusions

168. During construction the project will create some moderate and temporary adverse environmental impacts. No impacts have been identified that can not be mitigated; a preliminary EMP has been prepared. The program has been given a cost estimate and will be included as a line item in the contract bill of quantities while the community awareness will be a cost directly to the project. 169. Implementation of appropriate mitigation measures during the design, construction, and operation phases will minimize the negative impacts of the project to acceptable levels. To ensure that these mitigation measures are implemented and negative impacts avoided, the measures will be included in the contract specification of the project. Environmental monitoring of the project will be undertaken regularly to ensure that the measures are being implemented properly. 170. Contractors‟ conformity with contract procedures and specifications during construction will be carefully monitored. The contractor will be required to follow standard construction practices and comply with a series of contractual requirements which will be monitored and supervised by BDA and West Sepik Provincial Administration. 171. The project will have an overall beneficial impact and has the potential to improve socio-economic conditions. It will have insignificant negative impacts that will nevertheless be carefully monitored and adequately mitigated. 172. The overall conclusion is that the project complies with environmental categorization B, and therefore, the completion of this IEE fully meets the ADB and Government standards and no further environmental study is required for the construction of border facilities. 173. Further specific soil testing will be required prior to approvals being obtained for installation of septic tanks and prior to any development occurring in Vanimo to increase trade and investment.

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7.3 Recommendations

174. The recommendations of this IEE are: (i) the IEE be accepted by ADB, West Sepik Provincial Administration, BDA and DEC as the statement of project‟s environmental effects and how they will be mitigated; (ii) the future Contractor be assisted by the West Sepik Provincial Administration and the BDA to prepare an EMP based on the generic model included in this IEE; and, (iii) the project‟s impacts and mitigation thereof, be monitored as per the monitoring plan.

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