Environmental Assessment Document Project No.: 50211-001 Date: August 2016 Document status: Final Timor-Leste: National Road No. 1 Upgrading – Dili – Baucau Simplified Environmental Impact Statement/ Initial Enviornmental Examination This environmental assessment 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. 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. JICA National Road No. 1 Upgrading Project: Manatuto – Baucau Section Page | i Simplified Environmental Impact Statement Table of Contents 1. INTRODUCTION ..................................................................................................................................... 1 A. THE PROJECT .............................................................................................................................................. 1 B. PROJECT PROPONENT ................................................................................................................................. 1 C. OBJECTIVE, METHODOLOGY AND SCOPE OF SEIS .................................................................................... 2 2. DESCRIPTION OF THE PROJECT ...................................................................................................... 4 3. LEGAL AND POLICY FRAMEWORK ................................................................................................ 18 A. ENVIRONMENTAL LAW IN TIMOR-LESTE .................................................................................................... 18 B. ADB SAFEGUARD REQUIREMENTS ........................................................................................................... 21 4. DESCRIPTION OF EXISTING ENVIRONMENT ................................................................................ 23 A. PHYSICAL ENVIRONMENT BASELINE CONDITIONS .................................................................................... 23 B. BIOLOGICAL ENVIRONMENT BASELINE CONDITIONS................................................................................. 31 C. SOCIO-ECONOMIC ENVIRONMENT BASELINE CONDITIONS ...................................................................... 40 5. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES ........................... 46 A. DIRECT, INDIRECT, CUMULATIVE, SHORT TERM AND LONG TERM IMPACTS ............................................ 46 B. DESIGN AND PRE-CONSTRUCTION IMPACTS............................................................................................. 46 C. CONSTRUCTION IMPACTS ON PHYSICAL ENVIRONMENT .......................................................................... 52 D. CONSTRUCTION IMPACTS ON THE BIOLOGICAL ENVIRONMENT ................................................................ 62 E. CONSTRUCTION IMPACTS ON SOCIO-ECONOMIC ENVIRONMENT ............................................................. 64 F. OPERATION IMPACTS ON PHYSICAL ENVIRONMENT ................................................................................. 69 G. OPERATION IMPACTS ON THE BIOLOGICAL ENVIRONMENT ....................................................................... 71 H. OPERATION IMPACTS ON THE SOCIAL ENVIRONMENT .............................................................................. 71 6. CONSULTATION AND INFORMATION DISCLOSURE ................................................................... 72 A. INTRODUCTION ........................................................................................................................................... 72 B. CONCERNS RAISED AND RESPONSES ....................................................................................................... 72 C. INFORMATION DISCLOSURE ....................................................................................................................... 75 7. GRIEVANCE REDRESS MECHANISM ............................................................................................. 77 A. NEED FOR GRIEVANCE REDRESS MECHANISM ......................................................................................... 77 B. STEPS AND PROCEDURES FOR THE GRM ................................................................................................ 77 8. ENVIRONMENTAL MANAGEMENT PLAN ....................................................................................... 80 A. INSTITUTIONAL ARRANGEMENTS AND RESPONSIBILITIES ......................................................................... 81 B. MITIGATION AND MANAGEMENT OF IMPACTS ............................................................................................ 88 C. ENVIRONMENTAL MONITORING AND REPORTING...................................................................................... 88 D. ENVIRONMENTAL MANAGEMENT COSTS ................................................................................................... 89 9. CONCLUSION AND RECOMMENDATIONS .................................................................................. 106 10. NON TECHNICAL SUMMARY ...................................................................................................... 108 APPENDICES APPENDIX 1 – THREATENED AND ENDANGERED BIRD SPECIES APPENDIX 2 – EXISTING AND PROPOSAL IMPORTANT BIRD AREAS (IBA) APPENDIX 3 – PROTECTED AREAS APPENDIX 4 – GUIDELINES FOR CEMP SECTIONS/METHOD STATEMENTS APPENDIX 5 – ATTENDANCE AT PUBLIC CONSULTATION JICA National Road No. 1 Upgrading Project: Manatuto – Baucau Section Page | ii Simplified Environmental Impact Statement Abbreviations and Acronyms ADB – Asian Development Bank CAFI – Conselho de Administração do Fundo Infrastrutura CEMP – Contractors site-specific environmental management plan CITES – Convention on the International Trade in Endangered Species of Wild Fauna and Flora DMMR – Directorate of Mines and Mineral Resources DRBFC – Directorate of Roads, Bridges and Flood Control EHSG – Environmental Health and Safety Guidelines (of World Bank Group) EIS – Environmental impact statement ELL – Environmental Licensing Law (Decree No. 5/11) EMP – Environmental management plan ESO – Environment and safety officer (of the civil works contractor) ESU – Environment and Social Unit (within the MPWTC’s PMU) GRC – Grievance redress committee GRM – Grievance redress mechanism GOTL – Government of Democratic Republic of Timor-Leste ICCAI – International Climate Change Adaptation Initiative (of Pacific Climate Change Science Program) IUCN – International Union for Conservation of Nature JICA – Japan International Cooporation Agency MAFF – Ministry of Agriculture Fisheries and Forestry MOF – Ministry of Finance MOJ – Ministry of Justice MPA – Marine Protected Area MPWTC – Ministry of Public Work, Transport and Communications NDE – National Directorate of Environment NDPCEI – National Directorate of Pollution Control and Environmental Impact NDLPCS National Directorate of Land and Property and Cadastral Services (withn MOJ) NGO – Non – government organization NR1 – National Road No. 1 PISC – Project implementation and supervision consultant (supporting the PMU) PMU – Project Management Unit within MPWTC ROW – Right-of-way RP – Resettlement plan SPS – Safeguard Policy Statement 2009 (of the ADB) SEIS – Simplified environmental impact statement TA – Technical assistance UNCBD – United Nations Convention on Biological Diversity UNTAET – United Nations Transitional Administration for East Timor WHO – World Health Organization JICA National Road No. 1 Upgrading Project: Manatuto – Baucau Section Page | iii Simplified Environmental Impact Statement Executive Summary 1. Overview. The Government of Timor-Leste (GOTL) Leste will upgrade and climate proof 105 kilometers (km) of National Road No.1 (NR1) between its capital, Dili and the second largest town, Baucau on the north coast. The objective is to upgrade NR1 as part of a comprehensive national development program to upgrade, rehabilitate and maintain priority road sections of the road network of Timor-Leste that provide links between major cities and towns; improvement that will be designed and implemented by Ministry of Public Works, Transport and Communications (MPWTC). The Asian Development Bank (ADB) is requested to cofinance the proposed project on a parallel basis with the Japan International Cooperation Agency (JICA). JICA will support the section between Dili and Manatuto (49 km) and ADB will support upgrading and climate proofing 57.7 kilometers (km) of the A01-A02 section of NR1 connecting the towns of Manatuto and Baucau (the project). 2. The A01-A02 section of NR1 connects Manatuto to Baucau, passes through two sub- districts and many small villages and isolated settlements. The Baucau to Lautem Road (A01- 03) is also a priority as part of the Road Network Upgrading Sector Project. 3. Implementation arrangements. The executing agency for the upgrading and improvements of Manatuto-Baucau road is the Conselho de Administração do Fundo Infrastrutura (CAFI) and the implementing agency will be MPWTC. Within MPWTC the key agency for implementation will be the Project Management Unit (PMU) established to manage and implement projects financed wholly or partially by GOTL’s development partners. The PMU will be responsible for day