Vol. 1: Environmental and Social Impact Assessment Report for Proposed Kutubdia LNG Terminal Project Project Number: 50253-001 October 2017 BAN: Reliance Bangladesh LNG Terminal Limited Prepared by Environmental Resources Management (ERM) The environmental and social impact assessment report 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 “Term 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. Environment and Social Impact Assessment (ESIA) of the Proposed LNG Terminal Project, Kutubdia Island, Cox’s Bazar District, Bangladesh Reliance Power Limited Draft Final Report October 2017 www.erm.com The Business of Sustainability CONTENTS EXECUTIVE SUMMARY OF LNG TERMINAL PROJECT OF RBLTL I 1 INTRODUCTION 1 1.1 PROJECT BACKGROUND 2 1.2 PROFILE OF THE PROJECT PROPONENT 3 1.3 PROJECT RATIONALE 3 1.4 PURPOSE & SCOPE OF THE ESIA 6 1.4.1 Purpose of the ESIA 6 1.4.2 Scope of the ESIA 7 1.5 APPROACH & METHODOLOGY 7 1.5.1 Discussions with Project Proponent 7 1.5.2 Screening & Scoping Exercise 8 1.5.3 Baseline Data Collection 8 1.5.4 Stakeholder Consultation 9 1.5.5 Impact Assessment & Mitigation Measures 9 1.5.6 Analysis of Alternatives 10 1.5.7 Risk Assessment 10 1.5.8 Management Plans & Grievance Redress Mechanism 10 1.6 LIMITATIONS 10 1.7 INPUT INFORMATION/DATA SOURCES 11 1.8 STRUCTURE OF ESIA REPORT 13 2 POLICY, LEGAL & ADMINISTRATIVE FRAMEWORK 14 2.1 INTRODUCTION 14 2.2 ENVIRONMENT-RELATED POLICIES IN BANGLADESH 14 2.2.1 National Environmental Policy, 1992 14 2.2.2 Other Relevant Policies 15 2.3 ENVIRONMENT & SOCIAL RELATED LEGISLATIONS IN BANGLADESH 17 2.3.1 The Environment Conservation Act, 1995 (as amended in 2000, 2002 & 2010) 17 2.3.2 Environment Conservation Rules (ECR), 1997 (as amended in 2002 & 2003) 17 2.3.3 Acquisition & Requisition of Immovable Property Ordinance, 1982 17 2.3.4 Framework for Leasing of Government-owned (Khas) Agricultural Land 18 2.4 ADMINISTRATIVE SETUP RELATED TO ENVIRONMENT IN BANGLADESH 19 2.4.1 Other Related Government Organizations 19 2.4.2 Department of Environment (DOE) 25 2.4.3 Status of Project Approval from DOE 28 2.5 INSTITUTIONAL ARRANGEMENTS RELATED TO LAND ACQUISITION IN BANGLADESH 32 2.6 PROJECT RELEVANT INTERNATIONAL TREATIES & CONVENTIONS 33 2.7 RELEVANT NATIONAL & MARITIME REGULATIONS / STANDARDS 34 2.7.1 International Maritime Conventions, Protocols and Agreements applicable for LNG Transportation 34 2.8 INTERNATIONAL SAFEGUARD REQUIREMENTS 39 2.8.1 ADB’s Safeguard Policy Statement, 2009 39 2.8.2 ADB Project Categorisation 40 2.8.3 IFC Performance Standards 43 2.9 COMPARISON OF SAFEGUARD PRINCIPLES 43 2.9.1 Gap Analysis –Environment Safeguard Framework 43 2.9.2 Gap Analysis –Social Safeguard Framework 44 2.10 APPLICABLE EHS STANDARDS 49 2.11 CATEGORISATION OF THE PROJECT 50 2.11.1 Project Classification as per DOE, Ministry of Environment and Forest, Bangladesh 50 2.11.2 Project Classification as per ADB Safeguard Policy Statement 50 3 DESCRIPTION OF PROJECT 53 3.1 PROJECT COMPONENTS & THEIR SETTING 53 3.1.1 Seafront Based Facilities 57 3.1.2 Onshore Facilities 57 3.2 GENERAL FEATURES PREVAILING ALONG PIPELINE ROTUE 58 3.2.1 Onshore Spur Pipeline 62 3.3 CONNECTIVITY 63 3.4 PROPOSED PROJECT SCHEDULE FOR IMPLEMENTATION 66 3.5 TECHNOLOGY & PROCESS DESCRIPTION 66 3.5.1 LNG Offloading 66 3.5.2 LNG Storage 66 3.5.3 LNG Regasification onboard FSRU 67 3.5.4 Seawater System 68 3.5.5 Other Support Facilities 69 3.5.6 High Pressure Subsea & Subsurface Pipeline 71 3.5.7 Waste Generation & Their Management 72 3.6 RESOURCE REQUIREMENTS 74 3.6.1 Manpower 74 3.6.2 Freshwater 74 3.6.3 Land 74 3.6.4 Power Requirement 76 3.6.5 Earth Requirements 76 3.6.6 Equipment and Machineries 76 3.6.7 Construction Camps 76 3.7 POLLUTION SOURCES & CHARACTERIZATION 79 3.7.1 Air Emissions 79 3.7.2 Liquid Discharges 80 3.7.3 Waste Generation 80 3.7.4 Noise Emissions 81 3.8 CAPITAL & RECURRING DREDGING 82 3.9 PROJECT TIMELINE & PROJECT COST 82 4 DESCRIPTION OF THE ENVIRONMENT 84 4.1 INTRODUCTION 84 4.2 STUDY AREA 84 4.3 METHODOLOGY 85 4.3.1 Primary Baseline Data Collection: Environment and Ecology 86 4.3.2 Primary Baseline Data Collection: Socio-economic and Livelihood 90 4.4 OCEANOGRAPHIC CONDITIONS 92 4.4.1 Bathymetry 92 4.4.2 Tide 93 4.4.3 Waves 94 4.4.4 Current 95 4.5 LAND ENVIRONMENT 99 4.5.1 Physiography 99 4.5.2 Geology 99 4.5.3 Topography 100 4.5.4 Land use 101 4.5.5 Soil 104 4.5.6 Shoreline Erosion & Accretion 107 4.6 HYDROGRAPHY 112 4.7 HYDROLOGY & DRAINAGE PATTERN 112 4.8 MARINE WATER QUALITY 113 4.9 INLAND SURFACE WATER QUALITY 122 4.10 MARINE SEDIMENT QUALITY 123 4.11 GROUND WATER RESOURCE & QUALITY 127 4.12 METEOROLOGY 130 4.12.1 Climate 130 4.13 NATURAL HAZARDS 137 4.13.1 Earthquakes 137 4.13.2 Cyclones 138 4.13.3 Storm Surge 140 4.13.4 Inundation 141 4.13.5 Tsunami 143 4.13.6 Climate Vulnerability 144 4.14 AIR ENVIRONMENT 147 4.14.1 Methodology of Air Quality Monitoring 147 4.15 NOISE ENVIRONMENT 152 4.16 ROAD & RIVER TRAFFIC 154 4.17 ECOLOGY 157 4.17.1 Introduction 157 4.17.2 Climatic Conditions 157 4.17.3 Study area 157 4.17.4 Classification of Study Area-Bio-ecological Zone of Bangladesh 158 4.17.5 Ecosystems within the Study Area 160 4.17.6 Terrestrial Ecosystem 163 4.17.7 Aquatic Ecosystem 173 4.17.8 Protected Area 189 4.17.9 Ecologically Critical Areas (ECAs) 190 4.17.10 Other Sensitivities 191 4.17.11 Critical Habitat Assessment 191 4.18 SOCIO-ECONOMIC PROFILE 194 4.18.1 Administrative Structure 194 4.18.2 Demography of Project Area 196 4.18.3 Literacy Profile 204 4.18.4 Religion and Ethnic Composition 207 4.18.5 Vulnerability 209 4.18.6 Local Economy and Employment 209 4.18.7 Major Livelihood Activities of Kutubdia Island 211 4.18.8 Housing and Sanitation 232 4.18.9 Water and Power Supply 232 4.18.10 Education Facility 232 4.18.11 Health Facility 233 4.18.12 Financial Institutions 233 4.18.13 Cultural Heritage 233 5 IMPACT ASSESSMENT & MITIGATION MEASURES 235 5.1 IMPACT ASSESSMENT METHODOLOGY AND APPROACH 235 5.1.1 Prediction of Impacts 236 5.1.2 Evaluation of Impacts 236 5.1.3 Identification of Mitigation and Enhancement Measures 240 5.1.4 Residual Impact Evaluation 241 5.1.5 Management & Monitoring 241 5.1.6 Risk Assessment & Disaster Management Plan 241 5.2 IDENTIFICATION OF POTENTIAL IMPACTS 241 5.3 POTENTIAL IMPACTS 244 5.3.1 Potential Impact on Aesthetics & Visual Quality 244 5.3.2 Potential Impact on Land Use 246 5.3.3 Potential Impact on Soil Quality 248 5.3.4 Potential Impact on Physiography & Drainage 251 5.3.5 Potential Impact on Air Quality 252 5.3.6 Potential Impact due to Noise Generation (Onshore Project Components) 262 5.3.7 Potential Impacts on Ground Water Quality 264 5.3.8 Potential Impact on Surface Water Quality 265 5.3.9 Potential Impact Terrestrial Habitat (Flora & Fauna) 277 5.3.10 Potential Impact of Underwater Noise on Marine Fauna 280 5.3.11 Impact on Aquatic/Marine Habitats 284 5.3.12 Potential Impact due to Land Acquisition 289 5.3.13 Potential Livelihood Impacts 292 5.3.14 Sharecroppers, Lessee Farmers & Land Depended Groups Salt Pan Workers:293 5.3.15 Impact on Fishing Activity 294 5.3.16 Conflict with Local People 296 5.3.17 Community Health and Safety 296 5.3.18 Employment Generation 298 5.3.19 Demand for Lodging, Housing and Civic Services 299 5.3.20 Benefits of Community Development Activities / CSR Activity 299 5.3.21 Potential Impact on Occupational Health and Safety 300 5.3.22 Health Impact Associated with Environmental Conditions 302 5.4 CUMULATIVE IMPACTS 306 6 ANALYSIS OF ALTERNATIVES 308 6.1 INTRODUCTION 308 6.2 SITE LOCATION ALTERNATIVES 308 6.3 TECHNOLOGY ALTERNATIVES 314 6.3.1 FSRU / FSU 314 6.3.2 FSRU Berthing Options- Dual or Single Berthing 316 6.3.3 Offshore Pipeline- Submerged/ Pipeline on Trestle 317 6.4 PIPELINE ROUTE ALTERNATIVES 318 7 CONSULTATION AND PARTICIPATION 325 7.1 INTRODUCTION 325 7.2 IDENTIFICATION OF STAKEHOLDERS 325 7.3 SUMMARY OF STAKEHOLDER CONSULTATIONS 333 7.4 STAKEHOLDER MAPPING 341 7.5 APPROACH & METHODOLOGY FOR STAKEHOLDER MAPPING AND ANALYSIS 342 7.6 STAKEHOLDER ENGAGEMENT PLAN 347 7.6.1 Resource and Responsibility: 347 7.6.2 Communication Process 347 7.7 INFORMATION DISCLOSURE 348 7.7.1 Reporting 348 7.7.2 Informal Stakeholder Consultation 348 7.7.3 Formal Stakeholder Consultation 348 7.7.4 Project Disclosure Meeting 349 8 GRIEVANCE REDRESSAL MECHANISM 350 8.1 OBJECTIVES OF THE GRIEVANCE REDRESSAL MECHANISM 350 8.2 PROCESS OF GRIEVANCE REDRESS MECHANISM OF RBLTL 351 8.2.1 Grievance Redressal Mechanism for Employees and Contractual Workers 351 8.2.2 Grievance Redressal Mechanism for External Stakeholders 352 8.2.3 Grievance Redressal Mechanism for Resettlement 353 8.3 COMPOSITION OF GRC IN RBLTL 355 8.4 FUNCTIONAL PREMISES OF GRC FOR GRIEVANCE REDRESS 356 8.5 DISCLOSURE OF THE GRIEVANCE REDRESS MECHANISM 356 8.6 GRIEVANCE REPORTING PROCEDURE 356 8.7 MONITORING AND EVALUATION 357 8.8 BUDGETING 357 9 ENVIRONMENTAL AND SOCIAL MANAGEMENT PLAN 358 9.1 MITIGATION MEASURES 359 9.2 ENVIRONMENTAL MONITORING 359 9.2.1 Performance Indicators and Monitoring Schedule 359 9.2.2 Reporting Mechanism for Environmental and Social Monitoring Program 360 9.3 ESMP BUDGET 405 9.4 INFRASTRUCTURE FOR CONDUCTING