E1144 Public Disclosure Authorized Royal Government of Bhutan Ministry of Agriculture National Soil Service Center Public Disclosure Authorized SUSTAINABLE LAND MANAGEMENT PROJECT Environmental Management Framework Public Disclosure Authorized Final 24 March 2005 Public Disclosure Authorized Thimphu, Bhutan Table of Contents Acronyms and Glossary of Bhutanese Terms.................................................................................. v Executive Summary......................................................................................................................viii Chapter 1: Introduction.................................................................................................................... 1 1.1 Background .................................................................................................................... 1 1.2 Objectives....................................................................................................................... 2 1.3 Methodology .................................................................................................................. 2 Chapter 2: Project Description......................................................................................................... 5 2.1 Overview ........................................................................................................................ 5 2.2 Project Components ....................................................................................................... 5 Chapter 3: Current Environmental Situation ................................................................................. 12 3.1 Country Environmental Situation................................................................................. 12 3.1.1 Geopolitical Situation .............................................................................................. 12 3.1.2 Physiography............................................................................................................ 13 3.1.3 Climate..................................................................................................................... 13 3.1.4 Geology.................................................................................................................... 14 3.1.5 Land Use and Cover................................................................................................. 15 3.1.6 Natural Vegetation ................................................................................................... 15 3.1.7 Watersheds............................................................................................................... 16 3.1.8 Biodiversity.............................................................................................................. 16 3.1.9 Protected Areas ........................................................................................................ 17 3.2 Environmental Situation of Pilot Project Sites............................................................. 18 3.2.1 Radhi Geog, Trashigang Dzongkhag ....................................................................... 19 3.2.2 Nangkor Geog, Zhemgang Dzongkhag.................................................................... 22 3.2.3 Phuentsholing Geog, Chhukha Dzongkhag ............................................................. 24 Chapter 4: Existing National Policy and Legal Framework for Environmental Management ...... 27 4.1 General Overview......................................................................................................... 27 4.2 Brief Descriptions of Existing Policies, Laws and Regulations................................... 27 4.2.1 National Forest Policy, 1974.................................................................................... 27 4.2.2 Forest and Nature Conservation Act, 1995.............................................................. 28 4.2.3 Forest and Nature Conservation Rules, 2000........................................................... 28 4.2.4 Environmental Assessment Act, 2000 ..................................................................... 29 4.2.5 Regulation for the Environmental Clearance of Projects, 2002............................... 29 4.2.6 Regulation for Strategic Environmental Assessment, 2002..................................... 30 4.2.7 Pesticides Act of Bhutan, 2000................................................................................ 31 4.2.8 Mines and Minerals Management Act, 1995 ........................................................... 31 4.2.9 Biodiversity Act of Bhutan, 2003 ............................................................................ 31 4.2.10 DYT and GYT Chathrims, 2002 ......................................................................... 31 4.3 Comparative Assessment in Relation to WB Safeguard Policies................................. 34 4.3.1 Environmental Assessment (OP 4.01) ..................................................................... 34 4.3.2 Natural Habitats (OP 4.04)....................................................................................... 34 4.3.3 Forestry (OP 4.36).................................................................................................... 35 i 4.3.4 Pest Management (OP 4.09) .................................................................................... 36 4.3.5 Cultural Property (OP 4.11)..................................................................................... 37 4.3.6 Involuntary Resettlement (OP 4.12) ........................................................................ 38 4.3.7 Indigenous Peoples (OP 4.10).................................................................................. 39 4.3.8 Safety of Dams (OP 4.37)........................................................................................ 40 4.3.9 Projects in Disputed Areas (OP 7.60) ...................................................................... 41 4.3.10 Projects on International Waterways (OP 7.50) .................................................. 41 4.3.11 Comparative Summary ........................................................................................ 42 Chapter 5: Stakeholder Consultations............................................................................................ 44 5.1 Overview ...................................................................................................................... 44 5.1.1 Consultations with Stakeholders at the Local Level ................................................ 44 5.1.2 Consultations with Stakeholders at the Central Level ............................................. 45 5.2 Summary of Key Findings ........................................................................................... 45 5.2.1 Local Perception and Understanding of the Project................................................. 45 5.2.2 Environmental Impacts and Issues........................................................................... 45 5.2.3 Implementation of Environmental Management Regulations ................................. 46 5.2.4 Capacity Building Needs ......................................................................................... 48 Chapter 6: Operational Framework for Environmental Management ........................................... 49 6.1 Purpose and Description............................................................................................... 49 6.2 Potential Environmental Impacts and Mitigation Measures......................................... 50 6.3 Environmental Screening and Assessment................................................................... 57 6.3.1 Negative List of Activities ....................................................................................... 57 6.3.2 Initial Environmental Screening .............................................................................. 57 6.3.3 Environmental Assessment...................................................................................... 58 6.3.4 Public Consultation and Disclosure ......................................................................... 59 6.4 Capacity Building......................................................................................................... 59 6.5 Monitoring Framework ................................................................................................ 62 6.5.1 Compliance Monitoring ........................................................................................... 62 6.5.2 Impact Monitoring ................................................................................................... 62 6.6 Institutional Arrangement............................................................................................. 64 6.6.1 Local Level .............................................................................................................. 65 6.6.2 Dzongkhag Level ..................................................................................................... 67 6.6.3 Central Level............................................................................................................ 68 6.7 Budget Estimate ........................................................................................................... 70 6.8 Other Donor Support.................................................................................................... 71 Annexes Annex 1: Literature Reviewed/ Referred to..................................................................................