Environmental Assessment Report Initial Environmental Examination Project Number: 42252 August 2010 BHU: Rural Renewable Energy Development Project Prepared by the Department of Energy, Government of Bhutan for the Asian Development Bank (ADB). 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. INITIAL ENVIRONMENTAL EXAMINATION FOR WIND POWER PILOT PROJECT IN BHUTAN Table of Contents ABBREVIATIONS .................................................................................................................. vi 0.0 Executive Summary - Initial Environmental Examination (IEE)...................................... ii 0.1 Need for the Project ....................................................................................................... ii 0.2 Basic Objective .............................................................................................................. ii 0.3 Location of the Project ................................................................................................... ii 0.4 Initial Environmental Examination (IEE)......................................................................... ii 0.5 Category of Project ........................................................................................................ ii 0.6 Project Brief Details ....................................................................................................... ii 0.7 Implementing and Executive Agencies ......................................................................... iii 0.8 Policy, Legal and Administrative Frame Work .............................................................. iii 0.9 Description of Environment........................................................................................... iv 0.9.1 Physical Environment ...........................................................................................iv 0.9.2 Ecological Resources ...........................................................................................vi 0.9.3 Economic Development Resources......................................................................vi 0.9.4 Social and Cultural Resources............................................................................. vii 0.10 Environmental Impacts and Mitigation Measures ....................................................... viii 0.11 Analyses of Alternatives................................................................................................ ix 0.12 Public Consultations and Information Disclosure.......................................................... xi 0.13 Grievance Redress Mechanisms ............................................................................... xiii 0.14 Environmental Management Plan (EMP).................................................................... xiv 0.14.1 Environmental Management Plan (EMP) Cost.................................................... xiv 0 .15 Findings, Recommendations, and Conclusions.......................................................... xiv 0.15.1 Findings .............................................................................................................. xiv 0.15.2 Recommendations .............................................................................................. xiv 0.15.3 Conclusion............................................................................................................xv 1.1 Background.................................................................................................................... 1 1.2 Initial Environmental Examination (IEE)......................................................................... 1 1.3 Structure of IEE Report.................................................................................................. 2 1.4 Acknowledgements........................................................................................................ 3 2.0 Policy, Legal & Administrative Framework..................................................................... 4 2.1 Policies relevant to Wind Power Pilot Project ................................................................ 4 2.2 Electrification Act 2001 .................................................................................................. 4 2.3 Forest and Nature Conservation Act (FNCA) 1995: ...................................................... 4 2.4 Forest and Nature Conservation Rules (FNCR) 2000: .................................................. 4 2.5 Protected Areas ............................................................................................................. 5 i 2.6 Land Act 1979 (Revised 2007) ...................................................................................... 5 2.7 RGOB Decentralization Policy 2002 .............................................................................. 6 2.8 RGOB Environmental Clearance Procedures................................................................ 7 2.8.1 Environmental Classification................................................................................. 7 2.8.2 Preparation of EC Application............................................................................... 7 2.9 Conclusion ..................................................................................................................... 7 3.0 Description of the Project............................................................................................... 9 3.1 Need for the Project ....................................................................................................... 9 3.2 Basic Objective .............................................................................................................. 9 3.3 Location of Project ......................................................................................................... 9 3.4 Details of Wind Power Pilot Project ............................................................................. 11 3.5 Cost of Project ............................................................................................................. 12 3.6 Implementing and Executive Agencies ........................................................................ 14 4.0 Description of the Environment.................................................................................... 15 4.1 Physical Resources ..................................................................................................... 15 4.1.1 Location .............................................................................................................. 15 4.1.2 Topography, Geology and Soils.......................................................................... 15 4.1.3 Climate and Meteorology .................................................................................... 15 4.1.4 Air Quality ........................................................................................................... 17 4.1.5 Surface Water Sources and Quality.................................................................... 17 4.1.6 Groundwater Sources and Quality...................................................................... 18 4.1.7 Noise Levels in Project Area............................................................................... 18 4.1.8 Aquatic Environment.......................................................................................... 18 4.2 Ecological Resources .................................................................................................. 18 4.2.1 Protected Areas .................................................................................................. 18 4.2.2 Habitat and Flora in Project Area and Surroundings .......................................... 19 4.2.3 Biodiversity.......................................................................................................... 20 4.3 Economic Development Resources............................................................................. 22 4.3.1 Land use, Industry and Agriculture ..................................................................... 22 4.3.2 Administrative Infrastructure and Community Facilities ...................................... 23 4.3.3 Transportation..................................................................................................... 23 4.3.4 Electricity and Communication............................................................................ 23 4.3.5 Water and Sanitation .......................................................................................... 23 4.3.6 Tourism ............................................................................................................... 23 4.4 Social and Cultural Resources..................................................................................... 24 4.4.1 Demography ....................................................................................................... 24 4.4.2 History and Cultural ............................................................................................ 24 5.0 Anticipated Environmental Impacts and Mitigating Measures...................................... 25 5.1 Environmentally Insignificant Issues ............................................................................ 25 5.2 Environmentally Significant Issues /Valued Environmental Component (VEC)........... 25