Environmental Impact Assessment for the Hmawbi Agricultural Inputs Complex (HAIC) for Myanma Awba Group Final ESIA Report 14th February 2018 ERM‐Hong Kong, Limited 16th Floor, Berkshire House, 25 Westlands Road, Quarry Bay, Hong Kong Telephone 2271 3000 Facsimile 2723 5660 www.erm.com The business of sustainability Environmental Impact Assessment for the Environmental Resources Management Hmawbi Agricultural Inputs Complex (HAIC) 16th Floor, Berkshire House, 25 Westlands Road, Final ESIA Report Quarry Bay, Hong Kong Telephone 2271 3000 Telephone: (852) 2271 3000 Facsimile: (852) 2723 5660 Document Code: 0406940_AWBA Supplementary ESIA E‐mail: [email protected] Report_v0.2_13 Feb 2018_FINAL.pdf http://www.erm.com Client: Project No: Myanma Awba Group 0406940 Summary: Date: 14th February 2018 Approved by: This document presents the ESIA Report as part of the Environmental Impact Assessment for the Hmawbi Agricultural Inputs Complex (HAIC) Craig A Reid Partner 0 Final ESIA Report BS CAR CAR 14/02/18 Revision Description By Checked Approved Date This report has been prepared by Environmental Resources Management the trading name of ‘ERM Hong‐Kong, Limited’, with all reasonable skill, care and diligence within the terms of the Distribution Contract with the client, incorporating our General Terms and Conditions of Business and taking account of the resources devoted to it by agreement with the client. Public We disclaim any responsibility to the client and others in respect of any matters outside the scope of the above. Government This report is confidential to the client and we accept no responsibility of whatsoever nature to third parties to whom this report, or any part thereof, is made known. Any such party relies on the report at their own risk. Confidential ERM consulting services worldwide www.erm.com CONTENT EXECUTIVE SUMMARY I 1 INTRODUCTION 1-1 1.1 PROJECT OVERVIEW 1-1 1.2 BACKGROUND TO THE ESIA 1-1 1.3 OBJECTIVES OF THE ESIA STUDY 1-1 1.4 STUDY LIMITATIONS 1-2 1.5 STRUCTURE OF THIS ESIA REPORT 1-2 2 PROJECT DESCRIPTION 2-1 2.1 PROJECT LOCATION 2-1 2.2 LAND USE 2-1 2.3 INDUSTRIAL PARK BACKGROUND 2-1 2.4 CONSTRUCTION PHASE 2-2 2.5 OPERATIONAL PHASE 2-4 2.5.1 Office Building 2-4 2.5.2 Laboratory Building 2-6 2.5.3 Worker Facilities 2-6 2.5.4 Warehouse 2-7 2.5.5 Pesticide Formulation Facilities 2-7 2.5.6 Utility Building 2-11 2.5.7 Drum Crusher Building 2-11 2.5.8 Waste Water Treatment System Building 2-12 2.6 WASTE MANAGEMENT 2-12 2.6.1 Solid Waste Management 2-12 2.6.2 Wastewater Management 2-14 3 POLICY, LEGAL AND INSTITUTIONAL FRAMEWORK 3-1 3.1 INTERNATIONAL FINANCE CORPORATION PERFORMANCE STANDARDS 3-1 3.2 WORLD BANK GROUP EHS GUIDELINES 3-2 3.3 RELEVANT STANDARDS FOR THE AIR QUALITY IMPACT ASSESSMENT 3-4 3.3.1 Human Health 3-5 3.3.2 Ecology and Agriculture 3-5 3.3.3 Nuisance Effects 3-6 4 IMPACT ASSESSMENT METHODOLOGY 4-1 4.1 INTRODUCTION 4-1 4.2 SCOPING RESULTS 4-1 4.2.1 Potential Impacts on Ambient Air Quality 4-6 4.2.2 Potential Impact on Ambient Noise 4-7 4.2.3 Potential Impacts on Groundwater and Surface Water Quality as well as Use of Natural Resources 4-7 4.2.4 Potential Impacts on Soil and Topography 4-8 4.2.5 Potential Impacts on Community Health and Safety 4-8 4.2.6 Potential Impacts on Economy and Livelihoods 4-9 4.2.7 Potential Impacts on Occupational Health and Safety 4-9 4.2.8 Potential Impacts on Infrastructure Services 4-10 4.3 IMPACT ASSESSMENT METHODOLOGY 4-10 4.3.1 Impact Assessment 4-10 5 ENVIRONMENTAL BASELINE 5-20 5.1 AREA OF INFLUENCE 5-20 5.2 AIR QUALITY 5-20 5.2.1 Overview 5-20 5.2.2 Monitoring Methodology 5-23 5.2.3 Baseline Results and Summary – NOx, NO2 and SO2 5-27 5.2.4 Baseline Results and Summary – PM2.5 and PM10 5-28 5.3 CLIMATE AND METEOROLOGY 5-30 5.4 AMBIENT NOISE 5-34 5.5 SURFACE WATER QUALITY 5-39 5.6 GROUND WATER QUALITY 5-46 5.7 SOIL 5-49 5.8 PROTECTED AREAS AND KEY BIODIVERSITY AREAS 5-53 5.9 BIODIVERSITY 5-55 5.9.1 Avifauna 5-55 5.9.2 Herpetofauna 5-57 5.9.3 Butterflies and Dragonflies 5-60 5.9.4 Flora 5-62 6 SOCIO-ECONOMIC BASELINE 6-1 6.1 SOCIAL AREA OF INFLUENCE 6-1 6.2 POPULATION AND DEMOGRAPHIC 6-3 6.3 LIVELIHOOD AND ECONOMY 6-6 6.3.1 Livelihood Sources 6-6 6.3.2 Household Income and Credit 6-8 6.3.3 Average Land Holding 6-9 6.3.4 Utilities and Infrastructure 6-10 6.3.5 Health 6-12 6.3.6 Knowledge and Information about the Project 6-13 6.3.7 Village Profiles 6-14 7 STAKEHOLDER ENGAGEMENT 7-1 7.1 OBJECTIVES OF THE STAKEHOLDER ENGAGEMENT 7-1 7.2 STAKEHOLDER IDENTIFICATION 7-1 7.3 OVERVIEW OF ENGAGEMENT UNDERTAKEN 7-2 7.4 HOUSEHOLD SURVEYS 7-3 7.5 DATA COLLECTION 7-3 7.6 KEY FINDINGS FROM CONSULTATION WITH AFFECTED COMMUNITIES 7-1 7.7 NEXT STEPS 7-7 7.7.1 Grievance Mechanism 7-8 7.7.2 Further Engagement 7-8 8 CONSTRUCTION PHASE IMPACT ASSESSMENT 8-1 8.1 AIR QUALITY 8-1 8.1.1 Source of Impacts 8-1 8.1.2 Existing / In-Place Controls 8-2 8.1.3 Impact Significance 8-2 8.1.4 Additional Mitigation and / or Management Measures 8-4 8.1.5 Significance of Residual Impact 8-5 8.2 NOISE 8-5 8.2.1 Source of Impacts 8-5 8.2.2 Existing in-place controls 8-7 8.2.3 Impact Significance 8-7 8.2.4 Good Site Practices 8-8 8.2.5 Significance of Residual Impact 8-9 8.3 WATER QUALITY 8-9 8.3.1 Source of Impacts 8-9 8.3.2 Existing / In-place Controls 8-9 8.3.3 Impact Significance 8-9 8.3.4 Additional Mitigation/Management Measures 8-10 8.3.5 Significance of Residual Impact 8-13 8.4 SOIL QUALITY 8-13 8.4.1 Source of Impacts 8-13 8.4.2 Existing / in-place controls 8-13 8.4.3 Impact Significance 8-13 8.4.4 Additional Mitigation/Management Measures 8-14 8.4.5 Significance of Residual Impact 8-15 8.5 COMMUNITY HEALTH AND SAFETY 8-15 8.5.1 Potential Impacts 8-15 8.5.2 Existing / In-place Controls 8-15 8.5.3 Impact Significance 8-15 8.5.4 Additional Mitigation and/or Management Measure 8-16 8.5.5 Significance of Residual Impacts 8-17 8.6 ECONOMY AND LIVELIHOODS 8-17 8.6.1 Source of Impact 8-17 8.6.2 Significance of Impact 8-17 8.6.3 Enhancement Measures 8-17 8.7 OCCUPATIONAL HEALTH AND SAFETY 8-18 8.7.1 Source of Impact 8-18 8.7.2 Existing / In-place Controls 8-18 8.7.3 Impact Significance 8-18 8.7.4 Additional Mitigation and/or Management Measure 8-19 8.7.5 Significance of Residual Impacts 8-20 8.8 INFRASTRUCTURE SERVICES 8-20 8.8.1 Source of Impact 8-20 8.8.2 Existing / In-place Controls 8-21 8.8.3 Additional Mitigation and/or Management Measure 8-21 8.8.4 Residual Impact 8-22 8.9 UNPLANNED SPILLS 8-22 8.9.1 Source of Impacts 8-22 8.9.2 Existing / In-place Controls 8-22 8.9.3 Impact Significance 8-22 8.9.4 Additional Mitigation/Management Measures 8-23 8.9.5 Significance of Residual Impact 8-24 9 OPERATIONAL PHASE IMPACT ASSESSMENT 9-1 9.1 AIR QUALITY 9-1 9.1.1 Source of Impacts 9-1 9.1.2 Existing / In-place Controls 9-2 9.1.3 Impact Significance 9-2 9.1.4 Additional Mitigation/Management Measures 9-1 9.1.5 Residual Impact 9-3 9.2 AMBIENT NOISE 9-3 9.2.1 Source of Impacts 9-3 9.2.2 Existing / In-place Controls 9-3 9.2.3 Impact Significance 9-3 9.2.4 Mitigation/Management Measures 9-4 9.2.5 Residual Impact 9-5 9.3 SURFACE WATER QUALITY 9-5 9.3.1 Source of Impacts 9-5 9.3.2 Existing / In-place Controls 9-5 9.3.3 Impact Significance 9-5 9.3.4 Additional Mitigation/Management Measures 9-6 9.3.5 Significance of Residual Impact 9-7 9.4 SOIL QUALITY 9-7 9.5 COMMUNITY HEALTH AND SAFETY 9-7 9.6 ECONOMY AND LIVELIHOODS 9-8 9.7 OCCUPATIONAL HEALTH AND SAFETY 9-8 9.8 INFRASTRUCTURE SERVICES 9-8 9.9 UNPLANNED EVENTS 9-8 9.9.1 Source of Impact 9-8 9.9.2 Existing / In-place Controls 9-8 9.9.3 Impact Significance 9-8 9.9.4 Additional Mitigation, Management and Monitoring 9-9 9.9.5 Significance of Residual Impacts 9-10 10 ENVIRONMENTAL AND SOCIAL MANAGEMENT PLAN 10-1 10.1 OBJECTIVES 10-1 10.2 SCOPE OF THIS ESMP 10-1 10.3 SUMMARY OF IMPACTS AND MITIGATION MANAGEMENT MEASURES 10-1 10.4 DETAILED MANAGEMENT PLANS 10-2 10.5 ENVIRONMENTAL AND SOCIAL MONITORING PROGRAMME 10-15 10.5.1 Performance Indicators and Monitoring Schedule 10-16 10.5.2 Reporting Mechanism for Environmental and Social Monitoring Programme 10-16 10.6 INSTITUTIONAL SETTING AND IMPLEMENTATION ARRANGEMENTS 10-20 10.6.1 Construction Phase 10-20 10.6.2 Operation Phase 10-21 10.7 TRAINING 10-21 10.7.1 Construction Phase 10-21 10.7.2 Operation Phase 10-22 10.8 BUDGET 10-22 10.9 UPDATE OF THE ESMP 10-23 11 CUMULATIVE IMPACT ASSESSMENT 11-1 12 SUMMARY AND CONCLUSION 12-2 APPENDIX A ESIA TERMS OF REFERENCE APPENDIX B IMPACT ASSESSMENT METHODOLOGY APPENDIX C ENVIRONMENTAL AND SOCIAL ACTION PLAN APPENDIX D INFORMATION ON WORKPLACE SAFETY SYSTEMS EXECUTIVE SUMMARY In June 2016, the International Finance Corporation (IFC) extended a financing facility of US$10 million to Myanma Awba (Awba) for the expansion of Awba’s core business.