Improving Internet Connectivity for Micronesia Project (RRP REG 50348-001) Initial Environmental Examination Project No: 47114-001 Document status: Draft Date: October 2017 REG: Improving Internet Connectivity for Micronesia Initial Environmental Examination This environmental assessment 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. 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. ii CONTENTS Contents ............................................................................................................................... ii Abbreviations ...................................................................................................................... iv Executive Summary ............................................................................................................. v I. Introduction ................................................................................................................... 1 A. The Proposed Project 1 II. Policy, Legal, and Administrative Framework ............................................................ 2 A. Legal Framework 2 B. International Conventions 4 C. ADB Policy Requirements 5 1. ADB Safeguard Policy 5 2. ADB Safeguards Categories 5 III. Project Description ....................................................................................................... 6 A. Construction 10 B. Operation 10 C. Decommissioning 10 D. Project Alternatives and Justification 11 IV. Description of the Environment ................................................................................. 11 A. General Description 11 B. Physical Environment 13 1. Geology, Soils and Topography 13 2. Water 17 3. Air Quality 17 4. Climate 17 C. Ecological Environment 18 1. Terrestrial Flora and Fauna 18 2. Marine Ecology 20 D. Socio-economic Environment 22 1. Population and Social Indicators 22 2. Health 23 3. Education 24 4. Community Structures 25 5. Economy and labour market activities 25 6. Existing Internet Service and Usage 26 7. Land Use 26 8. Infrastructure 27 V. Anticipated Impacts and Mitigation Measures .......................................................... 28 A. Pre-Construction/Design Stage Impacts 28 B. Construction Stage Impacts 30 1. Impacts on the Physical Environment 30 2. Impacts on the Ecological Environment 32 3. Impacts on the Socioeconomic Environment 36 C. Operation Stage Impacts 37 1. Impacts on the Physical Environment 37 2. Impacts on the Biological Environment 38 3. Impacts on the Socioeconomic Environment 38 VI. Information Disclosure, Consultation, and Participation ......................................... 43 A. Consultation and Participation Undertaken 43 B. Further Consultation and Participation 45 C. Information Disclosure 45 VII. Grievance Redress Mechanism ................................................................................. 45 Improving Internet Connectivity for Micronesia Project (RRP REG 50348-001) A. Background 45 B. Grievance Redress Mechanism Plan 46 VIII. Environmental and Social Management and Monitoring Plan ................................. 47 A. Institutional Arrangements 47 B. Roles and Responsibilities 48 C. Capacity Building 49 D. ESMP Matrix 49 Executive Summary ............................................................................................................. 4 IX. Introduction ................................................................................................................... 1 X. Approach to consultation ............................................................................................. 1 A. People potentially affected by the physical cable infrastructure 1 B. Wider community in relation to improved internet 2 C. Government and other key informants 2 XI. Consultation and Participation Activities .................................................................... 2 XII. Consultation outcomes ................................................................................................ 3 XIII. Conclusions .................................................................................................................. 7 ANNEXES Consultation Report and Attendance Sheets iv ABBREVIATIONS ADB Asian Development Bank AGO Attorney General’s Office BU Branching Unit BNL BwebwerikiNet Limited CCK Communication Commission of Kiribati CSO Civil Society Organizations EA Executing Agency EAA Environment (Amendment) Act 2007 ECD Environment and Conservation Division (within MELAD) ECOP Environmental Code of Practice, for Planning and Construction of Submarine Fibre Optic Cable Projects in the Small Tropical Islands of Melanesia, Micronesia and Polynesia (ADB, 2014) ESMP Environmental and Social Management Plan FAD fish attracting device FSM Federated States of Micronesia GoK Government of Kiribati GRM Grievance Redress Mechanism IA Implementing Agency ICT Information and Communications Technology IEE Initial Environmental Examination IFC EHS International Finance Corporation / World Bank Group Environmental Health and Safety Guidelines ISP Internet Service Provider IPSA Initial Poverty and Social Assessment IUCN International Union for Conservation of Nature km kilometre KUC Kiritimati Uniting Church KUC Kiritimati Urban Council LDS Church of Jesus Christ of Latter Day Saints MELAD Ministry of Environment, Lands and Agriculture Development MFED Ministry of Finance and Economic Development MICTTD Ministry of Information, Communication, Transport and Tourism Development MLPID Ministry of Line and Phoenix Island Development NGO Non-Government Organisation ODF optical distribution frame SDA Seventh Day Adventist SPRSS Summary Poverty Reduction and Social Strategy SPS Safeguard Policy Statement 2009 (of ADB) USA United States of America Improving Internet Connectivity for Micronesia Project (RRP REG 50348-001) EXECUTIVE SUMMARY The Government of Kiribati (GOK) has requested the Asian Development Bank (ADB) to support a project to improve the internet connectivity for Kiritimati Island in the Republic of Kiribati. It is aligned with government’s development strategy for the Line and Phoenix group of Islands. To date the internet connectivity there completely depends on satellite service. Given the limited bandwidth demand in Kiritimati Island, no independent internet submarine cable solution is financially or economically viable. A connection to a passing by cable may provide a sustainable opportunity for Kiritimati. A new submarine cable, Southern Cross NEXT, between Australia and USA is proposed by Southern Cross Cables Limited which would pass within 400 km of Kiritimati. The proposed project is a submarine cable spur and Branching Unit (BU) from the Southern Cross NEXT cable to Kiritimati Island of Kiribati, together with associated infrastructure. Based on the preliminary screening, the Project has been classified by ADB as category B for environment, thus requiring an initial environmental examination (IEE). The IEE has been prepared in accordance with ADB Safeguard Policy Statement 2009 (SPS) and meets government requirements as set out under the Environment Act (as amended) 2007. The IEE includes an environmental management plan (EMP) which specifies the mitigation measures required during pre-construction, construction and operation stages and allocates responsibility for their implementation. The IEE has found that with the mitigation measures proposed the identified impacts will be able to be adequately mitigated and/or managed and that there are no significant issues which would prevent the project proceeding. There is no critical habitat affected by the project. A specialist field assessment has been carried out by a marine ecologist which found that there is very little live coral at the landing site and the cable can be placed without significant impact. The project has been classified as Category C for Involuntary Resettlement so no Resettlement Plan or Resettlement Framework is required. The project has been classified as Category C for Indigenous Peoples so no Indigenous Peoples Plan or Indigenous Peoples Framework is required. The land is owned by GoK, which has provided letters of support committing to providing the required land for the project. Land Due Diligence and SPRSS reports have been prepared. As the adjacent land is planned to be subdivided, GoK has committed to setting aside the land required for the project. The project will have a positive social and economic benefit by greatly improving the communications infrastructure provides a range of opportunities for social and economic development and poverty reduction. The project will have no significant impact on the marine environment and good practice mitigation measures will be applied. The land based works present risks for which standard good practice mitigation measures are to be applied. These include risk of pollution to the freshwater lens, erosion of the coastal dune, and short-term noise, dust, waste, traffic and safety issues. During operation there are ongoing risks of fuel spills, noise and air emissions form the back-up generators. There will be a permanent exclusion zone of nominally 100 m each side of the cable in the near-shore marine