Initial Environmental Examination May 2016 MLD: Kulhuduffushi Harbor Expansion Project Prepared by Ministry of Housing and Infrastructure, Government of Maldives for the Asian Development Bank CURRENCY EQUIVALENTS (as of 4 April 2016) Currency unit – Maldivian Rufiyaa (MVR) MVR1.00 = $0.06515 $1.00 = MVR 15.35 ABBREVIATIONS ADB - Asian Development Bank CBD - Convention of Biological Diversity DIRAM - Detailed Disaster Risk Profile Island GoM - Government of Maldives GHG - Green House Gas GRM - Grievance Redress Mechanism IEE - Initial Environmental Examination IPCC - International Panel on Climate Change MOFT - Ministry of Finance and Treasury MHI - Ministry of Housing and Infrastructure NAPA - National Adaptation program of Action NSWMP - National Solid Waste Management Policy PD - Project Director PMC - Project Management Consultant PMU - Project Management Unit PPTA - Project Preparatory Technical Assistance PMC - Project Management Consultant PMWS - Probable maximum wind speed REA - Rapid Environmental Assessment SPS - Safeguards Policy Statement TOR - Terms of Reference UKC - Under-keel clearance UNFCC - United Nations Framework Convention on Climate Change This 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. 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. TABLE OF CONTENTS EXECUTIVE SUMMARY I I. INTRODUCTION 1 A. Purpose of the report and need for the IEE .................................................... 1 B. Report structure ............................................................................................. 2 II. PROJECT SETTING 3 A. National policies and guidelines .......................................................................... 3 B. ADB’s Safeguard Policies ................................................................................... 6 C. International conventions and agreements ......................................................... 6 III. PROJECT DESCRIPTION 8 A. Project Proponent ............................................................................................... 8 B. The Project ......................................................................................................... 8 C. Reclamation areas ............................................................................................ 10 D. Waterfront and small craft zone area ................................................................ 11 E. Harbor separation wall: ..................................................................................... 11 F. Passenger/cargo harbor ................................................................................... 12 G. Operational port infrastructure .......................................................................... 13 H. Need for the Project .......................................................................................... 15 I. Location and Extent of Site Boundaries ............................................................ 16 J. Construction phase and schedule for implementation ....................................... 17 K. Mobilization ...................................................................................................... 17 L. Inputs (description of the project in terms of raw materials, processes, equipment and work force) ...................................................................................................... 17 IV. METHODOLOGY 20 A. Physical Surveys .............................................................................................. 20 B. Marine Survey .................................................................................................. 21 C. Water quality analysis ....................................................................................... 23 D. Socioeconomic condition .................................................................................. 23 V. EXISTING ENVIRONMENT 24 A. General setting ................................................................................................. 24 B. Geographic location and general setting of Kulhudhuffushi............................... 25 C. Ambient air quality ............................................................................................ 26 D. Ambient noise ................................................................................................... 26 E. Shoreline survey ............................................................................................... 26 F. Climatology and oceanography ........................................................................ 27 G. Beach environment ........................................................................................... 33 H. Sediment characteristics ................................................................................... 36 I. Coastal features at project site ......................................................................... 37 J. Flora and Fauna ............................................................................................... 38 K. Social Economic environment ........................................................................... 47 VI. STAKEHOLDER CONSULTATION 50 A. Scoping under EPA requirements ..................................................................... 50 B. Meeting with MHI and concept design team ..................................................... 50 C. Meetings with local stakeholder ........................................................................ 50 D. Meetings with Public (Kulhuduffushi) ................................................................ 50 E. Finding of stakeholder consultations ................................................................. 52 VII. ENVIRONMENTAL IMPACTS 54 A. Impact Identification .......................................................................................... 54 B. Limitation or uncertainty of impact prediction .................................................... 55 C. Impact Analysis ................................................................................................ 55 D. Construction Phase Impacts ............................................................................. 58 E. Operational phase Impacts ............................................................................... 60 F. Cumulative and Induced Impacts ...................................................................... 61 G. Climate Change Risk Assessment .................................................................... 62 H. Green House Gas (GHG) Emissions GHG ....................................................... 69 VIII. ALTERNATIVES 72 A. Considered alternatives .................................................................................... 72 B. Considered options ........................................................................................... 72 C. The no-project scenario .................................................................................... 73 IX. ENVIRONMENTAL MANAGEMENT PLAN 74 A. Mitigation measures: Construction Phase ......................................................... 74 B. Mitigation measures: Operation Phase ............................................................. 75 C. Institutional arrangements ................................................................................ 82 D. Grievance Redress Mechanism ........................................................................ 84 E. Monitoring Program .......................................................................................... 86 F. Monitoring reporting and format ........................................................................ 90 X. CONCLUSION 91 REFERENCES 92 APPENDICES Appendix 1: Terms of Reference .......................................................................................... 95 Appendix 2: Project Design related drawings ..................................................................... 102 Appendix 3: Land Use Plan of Kulhudhuffushi ................................................................... 111 Appendix 4 Bathymetry of the proposed harbor expansion and breakwaters ..................... 112 Appendix 5: Beach profile locations ................................................................................... 114 Appendix 6: Sea Grass Pictures ........................................................................................ 115 Appendix 7: List of People Met and Related Pictures ......................................................... 116 Appendix 8: Reef Pictures .................................................................................................. 119 Appendix 9: Water test results ........................................................................................... 122 Appendix 10: Existing Harbor Front .................................................................................... 123 LIST OF TABLES Table 1: International Conventions of relevance to this project GoM has signed and ratifies .. 6 Table 2. Proposed schedule for dredging work .................................................................... 17 Table 3 Estimated