MEGA FIRST CORPORATION BERHAD Don Sahong Hydropower Project Lao PDR Final Draft (11th July 2007) DON SAHONG HYDRO-ELECTRIC POWER PROJECT ENVIRONMENTAL IMPACT ASSESSMENT TABLE OF CONTENTS Page List of Tables v List of Figures vi List of Photographs vii List of Appendixes vii Executive Summary viii 1. Introduction 1-i 1.1 Layout of EIA Report l-l 1.2 Key Personnel Involved 1 -2 2. Project Description and Proponent 2-1 2.1 Project Location 2-1 2.2 Project Description 2-2 2.3 Power Station Operation 2-5 2.4 Transmission Line Size and Location 2-6 2.5 Site Access, Borrow Area and Logistics 2-7 2.5.1 Site Access 2-7 2.5.2 Borrow and Disposal Areas 2-9 2.5.3 Logistics 2-10 2.6 Project Proponent 2-11 3. Institutional and Legal Framework 3-1 3.1 Memorandum of Understanding and EIA Agreement 3-1 3.2 Official Stakeholders Meetings 3-1 3.3 Legal Policies and Relevant Environmental Guidelines 3-1 3.3.1 Main Laws Applicable to DSHEP 3-2 3.3.2 Environmental and Resettlement Legislation 3-2 3.3.3 Other Lao PDR Legislation 3-3 3.4 Other Relevant International Laws and Regulations 3-4 3.4.1 Mekong River Commission (MRC) 3-4 3.4.2 International Treaties and Organizations 3-4 3.5 Liaison with STEA and MEM-DoE 3-4 4. Baseline Information on Project Area 4-1 4.1 Physical Features 4-1 4.1.1 Topography and Setting 4-1 4.1.2 Geology and Soils 4-1 4.1.3 Climate 4-5 4.1.4 Hydrology of Mekong River and Site 4-5 4.1.5 Water Quality of Mekong River 4-8 Page i MFCB Environmental Impact Assessment Don Sahong Hydro Project in Lao PDR Executive Summary 4.2 Biological Environment 4-9 4.2.1 Aquatic Ecology including Fisheries 4-9 4.2.2 Terrestrial Vegetation of Islands and Transmission Line 4-13 4.2.3 Wildlife Resources 4-16 4.2.4 Birdlife 4-17 4.3 Communities and Cultural Aspect 4-19 4.3.1 Regional Setting 4-19 4.3.2 Island Communities 4-20 4.3.3 Socio-economic and Household Surveys of Project Area 4-21 4.4 Organization and Structure of the Public Health in Project Area 4-37 4.4.1 Overview of the Health Situation in Champasak Province 4-37 4.4.2 Malaria and Dengue Situation in Champasak Province 4-38 4.4.3 Malaria and Dengue Fever Situation in Khong District 4-40 4.4.4 STI & HIV/AIDS Situation in Champasak Province & Khong District 4-41 4.4.5 Intestinal Parasitic Infections in Champasak and Khong District 4-41 4.4.6 Distribution of Intestinal Parasites and S. mekongi in Project Area 4.43 4.5 Unexplored Ordinance (UXO) in Project Area 4-45 4.6 Tourism in DSHEP Project Area and Surrounds 4-45 4.6.1 Tourist Attractions 4-46 4.6.2 Boat Landings 4-47 4.6.3 Main Tour Operators 4-47 4.6.4 Boat Associations 4-47 4.6.5 Guesthouse Associations 4-48 4.6.6 Tourism Activities in Villages of Area 4-48 4.6.7 Information on Tourists and Visitors 4-48 4.7 Proposed Siphandone Wetlands Ramsar Site 4-50 4.7.1 Background 4-50 4.7.2 Conservation Concerns 4-52 Impact Analysis and Mitigation Measures 5-1 5.1 Impacts and Mitigation Actions during Construction 5-1 5.1.1 Impacts on Land Use and Local Infrastructure 5-1 5.1.2 Impacts and Mitigation Measures for Air and Water Quality 5-5 5.1.3 Impacts and Mitigating Actions on Forestry and Wildlife 5-7 5.1.4 Impacts and Mitigating Actions for Island Communities 5-8 5.1.5 Impacts and Mitigating Actions for Public Health 5-9 5.1.6 Impacts and Mitigating Actions for Mainland Operations 5-11 5.1.7 Impacts and Mitigating Actions for Transmission Lines 5-11 5.2 Impacts During Operation Phase 5-12 5.2.1 Impacts and Mitigating Actions on Land Use 5-12 5.2.2 Impacts on Hydrology and Downstream Flows 5-12 5.2.3 Impacts and Mitigation Actions on Aquatic Ecology and Fisheries 5-13 5.2.4 Impacts and Mitigating Actions for Island Communities and Livelihoods 5-13 5.2.5 Impacts and Mitigating Actions for Public Health 5-14 5.2.6 Impacts and Mitigating Actions for Transmission Lines 5-14 Page ii Environmental Impact Assessment MFCB Executive Summary Don Sahong Hydro Project in Lao PDR 5.2.7 Impacts & Mitigation Actions for Tourism and Ramsar Site Management 5-14 5.3 Impacts During De-commissioning 5-15 5.4 Aquatic Ecology and Fisheries Impacts and Mitigation Actions 5-16 5.4.1 Fisheries Data Availability 5-16 5.4.2 Fish Impacts and Mitigation Measures 5-17 5.4.3 Mitigation Options 5-18 5.4.4 Fish and Dolphins of the Lower Pools 5-21 5.4.5 Construction Phase Mitigation 5-22 5.4.6 Estimates of Fishermen Affected by DSHEP 5-22 5.4.8 Evaluation of Fish Mitigation Options 5-23 5.4.9 Estimates of Fishing Compensation Payments 5-24 Resettlement and Social Action Plans 6-1 6.1 Resettlement Action Plan and Implementation 6-1 6.1.1 Background to RAP 6-1 6.1.2 Project Impact and Scope of Resettlement 6-2 6.1.3 Socio-Economics and Livelihood of People to be Relocated 6-3 6.1.4 Policy Framework for Compensation and Resettlement 6-8 6.1.5 Resettlement Site and Development 6-9 6.1.6 Livelihood Restoration and Development 6-10 6.1.7 Institutional Arrangements 6-11 6.1.8 Consultation and Grievance Redress 6-13 6.1.9 Resettlement Monitoring and Evaluation 6-14 6.1.10 Implementation Schedule 6-14 6.1.11 Budget 6-15 6.2 Island Communities Public Involvement, Plans and Programs 6-16 6.2.1 DSHEP Village Liaison Committee 6-16 6.2.2 Public Involvement of Villagers and Programs 6-16 6.3 Social Acton Plan 6-17 6.3.1 Background 6-17 6.3.2 Social Impacts of DSHEP 6-17 6.3.3 Perceptions of Villagers over DSHEP 6-19 6.3.4 Social Action Plan 6-19 6.3.5 Proposed Development 6-20 6.3.6 Institutional Arrangements 6-22 6.3.7 Consultation and Involvement of Villagers 6-22 6.3.8 SAP Implementation Monitoring and Evaluation 6-23 6.3.9 Implementation Schedule 6-23 6.3.10 Budget Estimate 6-23 6.4 Public Involvement Program for Project 6-25 6.5 Integration with Provincial and District Programs 6-25 Page iii Environmental Impact Assessment MFCB Executive Summary Don Sahong Hydro Project in Lao PDR 7 Environmental Management Plans for Project 7-1 7.1 Institutional Framework for EMP 7-1 7.2 Management Arrangement and Staffing 7-1 7.3 Project Environmental Management Plan including Monitoring 7-2 7.3.1 Management Arrangements 7-2 7.3.2 Environmental Management Measures 7-2 7.3.3 Monitoring Measures 7-2 7.3.4 Contractor's Environmental Management Plans 7-4 7.4 Public Involvement and Corrective Actions for EMP 7-4 7.5 EMP Implementation and Costs 7-4 8 Alternatives to and within the Project 8-1 8.1 Khone Phapheng Alternative 8-1 8.2 Hou Xang Peuk Alternative 8-3 8.3 Within the Project Alternatives 8-5 8.4 No Project Option 8-5 9 Conclusions and Recommendations 9-1 9.1 Conclusions 9-1 9.2 Evaluation of Impact on Mekong River Fisheries 9-1 9.3 Notification to LNMC and MRC 9-2 9.4 Siphandone Wetlands Declaration 9-2 9.5 Recommendations 9-3 10 References 10-1 Page iv MFCB Environmental Impact Assessment Don Sahong Hydro Project in Lao PDR Executive Summary List of Tables 4.1 Long Term Average Monthly Flow (m3/s) at Pakse 1924-2006 4-6 4.2 Estimated Long Term Average Monthly Flows over Khone Phapheng (Thakho) with Environmental Flow at 800 m3/s, 1000 m3/s, 1200 nrVs and 1400 m3/s 4-6 4.3 Water Quality Data from Hou Sahong 4-9 4.4 Partial List ofMain Fish Species Migrating Through Hon Sahong 4-11 4.5 Forest Type Comparison Khong District and Project Areas 4-14 4.6 Comparisons of Don Sadam and Don Sahong and Affected Areas 4-15 4.7 Estimated Areas of Agricultural and Forestry Lands on Don Sadam & Don Sahong Affected by DSHEP Pondage and Works 4-16 4.8 Wildlife Status Within and Around the DSHEP Project Area 4-16 4.9 List of Bird Species of Don Sahong HEP Project Areas 4-18 4.10 Indicated Land Area of Project Area Communities 4-21 4.11 Existing Activity & Business Groups in Project Area Communities 4-22 4.12 Number of Individual Households Selected for Household Survey. 4-22 4.13 Village Populations and Ethnicity 4-23 4.14 Living Standards and Disadvantaged Groups of Project Area 4-23 4.15 Retail Facilities, Transportation and Communications in Project Area 4-24 4.16 Sources of Income from Household Survey 4-26 4.17 Sources of Household Cash income from Project Area 4-27 4.18 Household Expenditure Patterns in Project Area 4-28 4.19 Gender Share in Household Activities in Project Area 4-30 4.20 Gender Share of Decision making in Households of Project Area 4-31 4.21 Land Use in Project Area 4-32 4.22 Livestock Population in Project Area 4-33 4.23 Villagers Perceptions on Impacts of DSHEP 4-36 4.24 Top Ten Diseases Reported in Champasak Province 4-38 4.25 Malaria Statistics in Champasak Province from 2000-2005 4-38 4.26 Dengue Situation in Khong District from 2001 to 2005 4-41 4.27 Results of STI/HIV Infection Rates in Champasak Province 2004 4-41 4.28 Helminth Infection Rates for Champasak Province 2001-2005 4-42 4.29 Intensity of; Schistosoma mekongi around Khong Island Area 1989-1990 4-43 4.30 Results horn Stool Survey in Three Villages of DSHEP - March, 2007 4-44 4.31 UNDP UXO Activities 1973-2005 - Champasak Province 4-45 4.32 Tourist Arrivals from Thailand 4-45 5.1 Estimates of Land Requirements & Use in Areas Affected by the DSHEP Project 5-3 5.2 Estimated Ai'eas of Agricultural and Forestry Lands on Don Sadam & Don Sahong Affected by DSHEP Pondage and Works - 2007 5-4 5.3 Partial List ofMain Fish Species Affected and Migrating Through Hou Sahong 5-18 5.4 Estimates of Number of Fishermen Affected by DSHEP 5-23 5.5 Assessment of Effects of DSHEP on Fish Migration at the Great Fault Line 5-24 5.6 Fisheries Compensation and Mitigation Cost Estimates (Costs in '000 USD) 5-25 6.1 List of Key Technical Terms Used for RAP 6-2 6.2 Affected Houses, Residential Lands, and Persons by Village/Hamlet 6-3 6.3