MFCBMFCBMFCB NCC DON SAHONG HYDROPOWER PROJECT, LAO PDR ENVIRONMENTAL IMPACT ASSESSMENT FINAL JANUARY 2013 Prepared for: MEGA FIRST CORPORATION BERHAD Prepared By: National Consulting Company Vientiane, Lao PDR MFCBMFCBMFCB NCC ENVIRONMENTAL IMPACT ASSESSMENT - DON SAHONG HYDROPOWER PROJECT TABLE OF CONTENTS EXECUTIVE SUMMARY ......................................................................................................................VII 1 INTRODUCTION AND BACKGROUND.............................................................................1-1 1.1 PROJECT LOCATION ................................................................................................................. 1-1 1.2 PURPOSE OF THE PROJECT ...................................................................................................... 1-3 1.3 PROJECT NEED AND RATIONALE ............................................................................................... 1-3 1.4 INSTITUTIONAL, POLICY AND LEGAL FRAMEWORK....................................................................... 1-4 1.4.1 Lao Regulatory Framework..........................................................................................1-4 1.4.2 Relevant Laws..............................................................................................................1-4 1.4.3 Decrees, Regulations and International Conventions..................................................1-6 1.4.4 Best Practice ................................................................................................................1-8 1.4.5 Relevant International Agreements............................................................................1-11 1.4.6 MRC and Hydropower Planning in the Mekong Basin...............................................1-11 1.5 DSHPP ENVIRONMENTAL AND SOCIAL REPORTS .................................................................... 1-13 1.5.1 Environmental and Social Documents .......................................................................1-13 1.5.2 Objectives of this Updated EIA Report ......................................................................1-13 1.5.3 Scope and Structure of this EIA Report .....................................................................1-13 1.6 NAME AND ADDRESS OF THE EIA REPORT AUTHOR ................................................................. 1-14 2 PROJECT SCOPE AND COMPONENTS ..........................................................................2-1 2.1 BACKGROUND .......................................................................................................................... 2-1 2.2 POWER GENERATION ............................................................................................................... 2-1 2.3 PROJECT FEATURES................................................................................................................. 2-1 2.4 PROJECT STUDY AREA ............................................................................................................. 2-5 2.5 PROJECT COMPONENTS ........................................................................................................... 2-6 2.5.1 General.........................................................................................................................2-6 2.5.2 Dam and Powerhouse..................................................................................................2-6 2.5.3 Transmission Lines ......................................................................................................2-7 2.5.4 Access Roads ..............................................................................................................2-7 2.6 CONSTRUCTION CAMP.............................................................................................................. 2-8 2.7 EXCAVATION, BORROW AND SPOIL DISPOSAL SITES .................................................................. 2-8 2.7.1 Raw Material ................................................................................................................2-8 2.7.2 Disposal of Waste ......................................................................................................2-10 2.8 PROJECT OPERATIONS ........................................................................................................... 2-10 2.9 SCOPING OF POTENTIAL ENVIRONMENTAL AND SOCIAL IMPACTS .............................................. 2-10 3 ENVIRONMENTAL SETTING.............................................................................................3-1 3.1 PHYSICAL ENVIRONMENT OF THE PROJECT AREAS .................................................................... 3-1 3.1.1 Physical Features of the Project Areas........................................................................3-1 3.1.2 Topography and Setting...............................................................................................3-2 3.1.3 Geology and Geomorphology ......................................................................................3-2 3.1.4 Sources of Materials ....................................................................................................3-3 3.1.5 Hydrology of the Mekong River....................................................................................3-4 3.1.6 Water Quality of Mekong River ....................................................................................3-7 3.1.7 Erosion and Sedimentation ........................................................................................3-11 3.1.8 Climate and Meteorology ...........................................................................................3-11 3.2 BIOLOGICAL ENVIRONMENT..................................................................................................... 3-12 3.2.1 General.......................................................................................................................3-12 3.2.2 Vegetation in the Project Area ...................................................................................3-12 3.2.3 Wildlife and Aquatic Animals......................................................................................3-13 3.2.4 Aquatic Ecology including Fisheries...........................................................................3-13 3.2.5 The Mekong (Irrawaddy) River Dolphin .....................................................................3-19 3.3 SOCIAL AND CULTURAL ASPECTS............................................................................................ 3-20 3.3.1 Unexploded Ordnance (UXO) in the Project Area .....................................................3-20 3.3.2 Tourism in DSHPP Project Area and Surroundings...................................................3-20 3.4 CONSERVATION ISSUES .......................................................................................................... 3-24 Environmental Impact Assessment – Final January 2013 i MFCBMFCBMFCB NCC 4 PROJECT RATIONALE AND ALTERNATIVES ................................................................4-1 4.1 RATIONALE .............................................................................................................................. 4-1 4.2 HYDRO POWER POTENTIAL AND DEMANDS ................................................................................ 4-1 4.2.1 Domestic Market Power Demand ................................................................................4-1 4.2.2 Regional Market Power Demand .................................................................................4-2 4.3 PROJECT ALTERNATIVES .......................................................................................................... 4-2 4.3.1 Khone Phapheng Alternative Concept.........................................................................4-3 4.3.2 Hou Xang Pheuak Alternative ......................................................................................4-5 4.3.3 Tad Somphamit Alternative..........................................................................................4-7 4.3.4 Within-Project Options .................................................................................................4-9 4.3.5 No Project Option.......................................................................................................4-10 4.3.6 Comparison of Alternatives ........................................................................................4-11 5 POTENTIAL IMPACTS .......................................................................................................5-1 5.1 INTRODUCTION ......................................................................................................................... 5-1 5.2 IMPACT SIGNIFICANCE .............................................................................................................. 5-1 5.2.1 Magnitude of impact.....................................................................................................5-1 5.2.2 Duration........................................................................................................................5-2 5.2.3 Compliance with Standards .........................................................................................5-2 5.3 IMPACT SUMMARY .................................................................................................................... 5-2 5.4 IMPACTS DURING PROJECT CONSTRUCTION..............................................................................