Initial Environmental Examination (Main Report – Part 3 of 7) Project Number: 54211-001 March 2021 Document Stage: Draft Viet Nam: Lotus Wind Power Project Prepared by ERM Vietnam for Lien Lap Wind Power Joint Stock Company, Phong Huy Wind Power Joint Stock Company, and Phong Nguyen Wind Power Joint Stock Company as a requirement of the Asian Development Bank. The initial environmental examination is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. Your attention is directed to the “Terms of Use” section of this website. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. DRAFT INITIAL ENVIRONMENTAL AND SOCIAL EXAMINATION BIODIVERSITY BASELINE Phong Nguyen Wind Farm Project Figure 8.2 Protected Areas Surrounding Project Area www.erm.com Version: 4.0 5 March 2021 Page 153 Project No.: 0552758 Client: Phong Nguyen Wind Farm JSC DRAFT INITIAL ENVIRONMENTAL AND SOCIAL EXAMINATION BIODIVERSITY BASELINE Phong Nguyen Wind Farm Project 8.7 Endemic Bird Areas An Endemic Bird Area (EBA) is an area to which at least two restricted range bird species (species with extent of occurrence (EOO) of ≤ 50,000 km2) are entirely confined (BirdLife International 2020). Vietnam has a total of seven EBAs. The Annamese Lowlands EBA overlaps the Project Area. The Annamese Lowlands EBA covers the lowland and foothills of north-central Vietnam (southern Ninh Binh, Thanh Hoa, Nghe An, Ha Tinh, Quang Binh, Quang Tri and Thu-Thien Hue province) and part of adjacent central Laos. The natural vegetation of the EBA is lowland evergreen forest, with smaller areas of limestone forest. However, a large proportion of the EBA has been deforested, and majority of the remaining natural vegetation is highly fragmented. There are 16 Important Bird Areas (IBAs) are within the Annamese Lowlands EBA (Table 8.5 and Figure 8.3). 20 Figure 8.3 IBAs in Annamese Lowlands EBA 20 Birdlife International. Available at: http://datazone.birdlife.org/eba/factsheet/139 Accessed: 20 July 2020 www.erm.com Version: 4.0 5 March 2021 Page 154 Project No.: 0552758 Client: Phong Nguyen Wind Farm JSC DRAFT INITIAL ENVIRONMENTAL AND SOCIAL EXAMINATION BIODIVERSITY BASELINE Phong Nguyen Wind Farm Project Table 8.5 IBAs within the Annamese Lowlands EBA No. BA Code Site Name Country 1 LA026 Khammouan Limestone Laos 2 LA017 Upper Xe Bangfai Laos 3 LA018 Hin Namno Laos 4 LA023 Eastern Bolikhamxay Mountains Laos 5 LA025 Nakai-Nam Theun Laos 6 VN041 Truong Son Vietnam 7 VN019 Ke Go Vietnam 8 VN021 Phong Dien Vietnam 9 VN022 Vu Quang Vietnam 10 VN026 Bach Ma Vietnam 11 VN031 Dakrong Vietnam 12 VN034 Cuc Phong Vietnam 13 VN035 Khe Net Vietnam 14 VN039 Phong Nha Vietnam 15 VN040 Ke Bang Vietnam 16 VN042 Pu Mat Vietnam Dakrong Important Bird Area is located 28 km to the southeast of the Project Area. The IBA which is 40,526 ha, is the southern part of the Annamese Lowlands Endemic Bird Area (EBA). The common habitat in Dakrong IBA is forest and shrubland. Bird species of conservation significance inhabiting Dakrong proposed nature reserve include Vietnam Pheasant (Lophura edwardsi) [IUCN CR, VNRB EN], Crested Argus (Rheinardia ocellata) [IUCN EN]. In 1996, Vietnam Pheasant (Lophura edwardsi) was rediscovered in Phong My commune, Thua Thien Hue province, and in Huong Hoa commune, Quang Tri province. In December 1997, at least four specimens were trapped in Ba Long commune, Quang Tri province. One juvenile male Vietnam Pheasant (Lophura edwardsi) was captured at Dakrong in February 2000 (Birdlife International., 2020). Crested Argus (Rheinardia ocellata) is endemic to South-East Asia. The nominate subspecies occurs along the Annamite mountain chain in central and southern Vietnam and neighbouring eastern Laos, south to the Da Lat Plateau in southern VietnamIUCN ( Redlist, 2020). Truong Son IBA is 29.5 km away from the Project Area. The IBAhich w is 50,000ha, in the northwest part of the Annamese Lowlands Endemic Bird Area (EBA). Similarto Dakrong IBA, the common habitat in Truong Son IBA is forest and shrubland. The typical species in Truong Son IBA is the Crested Argus (Rheinardia ocellata) [IUCN EN]. www.erm.com Version: 4.0 5 March 2021 Page 155 Project No.: 0552758 Client: Phong Nguyen Wind Farm JSC DRAFT INITIAL ENVIRONMENTAL AND SOCIAL EXAMINATION BIODIVERSITY BASELINE Phong Nguyen Wind Farm Project 8.8 Vietnam Forest Classifications Vietnam’s forests can be categorized into three categories (Forest Science Institute of Vietnam, 2009), namely special use, production and protection under the Law on Protection and Development of Forest of the National Assembly (Forest Law) (The REDD Desk, 2004): Protection forest: Protection forests are used mainly to protect water sources and land, prevent erosion and desertification, restrict natural calamities and regulate climate, thus contributing to environmental protection. Protection forest may include (1) headwater protection forests; (2) wind- and sand-shielding protection forests; (3) protection forests for tide shielding and sea encroachment prevention; and (4) protection forests for environmental protection. Special-use forest: Special-use forests, which are used mainly for conservation of nature, specimens of the national forest ecosystems and forest biological gene sources; for scientific research; protection of historical and cultural relics as well as landscapes; in service of recreation and tourism in combination with protection, contributing to environmental protection. Special-use forest may include (1) national parks; (2) nature conservation zones; (3) landscape protection areas; and (4) scientific research and experiment forests. Production forest: Production forests are used mainly for production and trading of timber and non- timber forest products in combination with protection, contributing to environmental protection, including (1) natural production forests; (2) planted production forests; (3) seeding forests, including the selected and recognized planted forests and natural forests. The production forest and protection forest associated with Project area are illustrated in Figure 8.4. This forest is under management of People's Committee of Quang Tri. www.erm.com Version: 4.0 5 March 2021 Page 156 Project No.: 0552758 Client: Phong Nguyen Wind Farm JSC DRAFT INITIAL ENVIRONMENTAL AND SOCIAL EXAMINATION BIODIVERSITY BASELINE Phong Nguyen Wind Farm Project Figure 8.4 The Location of Protection Forest www.erm.com Version: 4.0 5 March 2021 Page 157 Project No.: 0552758 Client: Phong Nguyen Wind Farm JSC DRAFT INITIAL ENVIRONMENTAL AND SOCIAL EXAMINATION BIODIVERSITY BASELINE Phong Nguyen Wind Farm Project 8.9 Species of Conservation Interest The IBAT database was used to identify potential critical habitat species (Critically Endangered, Endangered species, and Restricted Range species) within the Study Area in order to assess against the thresholds for Critical Habitat Criterion 1 (Critically Endangered and/or Endangered species), Criterion 2 (Endemic or restricted-range species) and Criterion 3 (Migratory or congregatory species). The complete IBAT risk screen report (dated 7 May 2020) is shown in Appendix C. 8.9.1 Threatened Species Threatened species are identified by screening from IBAT database as those classified on the IUCN Red List of Threatened Species. The Red List defines threatened species as those listed as being Critically Endangered (CR), Endangered (EN) or Vulnerable (VU). CR and EN species are considered to be at a heightened risk of extinction and are awarded an elevated level of consideration under IFC PS6. These species are candidates for screening against Critical Habitat Criterion 1. Vulnerable species are also considered under Criterion 1 where the Project impacts may impact the species to an extent as to warrant the species’ reclassification as either CR or EN. Threatened species that have been identified within the Study Area are listed in Table 8.6. Table 8.6 Threatened Species Identified within the Study Area N Scientific Name Common Name IUCN Vietnam Class Name o. Red List Red Data Book 1 Crocodylus siamensis Siamese Crocodile CR CR Reptilia 2 Indotestudo elongata Elongated Tortoise CR EN Reptilia 3 Manis javanica Sunda Pangolin CR EN Mammalia 4 Manis pentadactyla Chinese Pangolin CR EN Mammalia 5 Pseudoryx Saola CR EN Mammalia nghetinhensis 6 Muntiacus Large-antlered CR NL Mammalia vuquangensis Muntjac 7 Cuora bourreti Bourret's Box Turtle CR NL Reptilia 8 Gyps bengalensis White-rumped Vulture CR CR Aves 9 Sarcogyps calvus Red-headed Vulture CR NL Aves 10 Emberiza aureola Yellow-breasted CR NL Aves Bunting 11 Gyps tenuirostris Slender-billed Vulture CR DD Aves 12 Lophura edwardsi Vietnam Pheasant CR EN Aves 13 Panthera pardus ssp. Indochinese Leopard CR NL Mammalia delacouri 14 Chrotogale owstoni Owston's Civet EN NL Mammalia www.erm.com Version: 4.0 5 March 2021 Page 158 Project No.: 0552758 Client: Phong Nguyen Wind Farm JSC DRAFT INITIAL ENVIRONMENTAL AND SOCIAL EXAMINATION BIODIVERSITY BASELINE Phong Nguyen Wind Farm Project N Scientific Name Common Name IUCN Vietnam Class Name o. Red List Red Data Book 15 Cuon alpinus Dhole EN EN Mammalia 16 Elephas maximus Asian Elephant EN CR Mammalia 17 Panthera tigris Tiger EN NL Mammalia 18