Baucau to Viqueque Highway Project (RRP TIM 51115) Initial Environmental Examination Project Number: 51115 Date: January 2018 Timor-Leste: Baucau to Viqueque Highway Project 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. BVHP Baucau Viqueque Highway Project BAUCAU to VIQUEQUE SIMPLIFIED ENVIRONMENTAL IMPACT STATEMENT 1. EXECUTIVE SUMMARY ........................................................................................................................... 1 2. PROJECT PROPONENT .......................................................................................................................... 5 3. EIA CONSULTANTS .................................................................................................................................. 5 4. DESCRIPTION OF THE PROJECT ......................................................................................................... 6 4.1 IDENTIFICATION OF THE PROJECT ........................................................................................................ 6 4.2 CATEGORY OF THE PROJECT ............................................................................................................... 6 4.3 LOCATION AND SCALE OF PROJECT ..................................................................................................... 6 4.4 VILLAGES ............................................................................................................................................... 6 4.5 JUSTIFICATION AND NEED FOR THE PROJECT.................................................................................... 14 4.6 PROPONENT’S ENDORSEMENT OF THE PROJECT. .............................................................................. 16 4.7 STRUCTURE OF THE SEIS REPORT AND METHODOLOGY ................................................................. 16 5. LEGAL AND POLICY FRAMEWORK .................................................................................................... 17 5.1 ENVIRONMENTAL LAW IN TIMOR-LESTE ............................................................................................. 17 5.2 ENVIRONMENTAL LICENSING LAW. ..................................................................................................... 17 5.3 MINISTERIAL DIPLOMAS FOR LICENSING OF MINERAL EXTRACTION ................................................. 18 5.4 NATIONAL SYSTEM FOR PROTECTED AREAS ...................................................................................... 19 5.5 OTHER INSTITUTIONAL LEGISLATION. ................................................................................................. 19 5.6 RESETTLEMENT AND LAND ACQUISITION ........................................................................................... 20 5.7 SAFEGUARD GUIDELINES ................................................................................................................... 21 5.8 CONTRACTUAL OBLIGATIONS .............................................................................................................. 21 6. DESCRIPTION OF THE ENVIRONMENT ............................................................................................ 23 6.1 PHYSICAL ENVIRONMENTAL CONDITIONS .......................................................................................... 23 6.2 ECOLOGICAL COMPONENTS ............................................................................................................... 29 6.3 ECONOMIC COMPONENTS ................................................................................................................... 34 6.4 SOCIAL COMPONENTS ........................................................................................................................ 36 6.5 ECONOMIC COMPONENTS .................................................................................................................. 37 7. ALTERNATIVES ....................................................................................................................................... 42 8. CLIMATE CHANGE .................................................................................................................................. 43 9. IMPACT ASSESSMENT & MITIGATION MEASURES ....................................................................... 45 9.1 INTRODUCTION .................................................................................................................................... 45 9.2 PRE-CONSTRUCTION IMPACTS ........................................................................................................... 45 9.3 CONSTRUCTION IMPACTS ON PHYSICAL ENVIRONMENT ................................................................... 50 9.4 CONSTRUCTION IMPACTS ON THE BIOLOGICAL ENVIRONMENT ......................................................... 58 9.5 CONSTRUCTION IMPACTS ON SOCIAL ENVIRONMENT........................................................................ 60 9.6 OPERATION IMPACTS ON PHYSICAL ENVIRONMENT .......................................................................... 64 9.7 OPERATION IMPACTS ON THE BIOLOGICAL ENVIRONMENT ................................................................ 66 9.8 OPERATION IMPACTS ON THE SOCIAL ENVIRONMENT ....................................................................... 66 9.9 NEED FOR GRIEVANCE REDRESS MECHANISM .................................................................................. 66 9.10 STEPS AND PROCEDURES FOR THE GRM ......................................................................................... 67 10. ENVIRONMENTAL MANAGEMENT PLAN ...................................................................................... 70 10.1 OVERVIEW OF ENVIRONMENTAL MANAGEMENT PLAN ....................................................................... 70 10.2 INSTITUTIONAL ARRANGEMENTS AND RESPONSIBILITIES .................................................................. 71 10.3 ASSESSMENT OF INSTITUTIONAL CAPACITY ....................................................................................... 73 10.4 MITIGATION OF IMPACTS ..................................................................................................................... 75 10.5 ENVIRONMENTAL MONITORING AND REPORTING............................................................................... 77 10.6 ENVIRONMENTAL MANAGEMENT COSTS ............................................................................................ 78 11. PUBLIC CONSULTATION AND INFORMATION DISCLOSURE ................................................. 95 11.1 INTRODUCTION AND STAKEHOLDER IDENTIFICATION ......................................................................... 95 11.2 CONCERNS RAISED AND RESPONSES ................................................................................................ 95 11.3 INFORMATION DISCLOSURE ................................................................................................................ 99 12. DIFFICULTIES ENCOUNTERED ...................................................................................................... 99 13. CONCLUSION AND RECOMMENDATIONS ................................................................................. 100 13.1 FINDINGS AND CONCLUSIONS .......................................................................................................... 100 13.2 RECOMMENDATIONS ......................................................................................................................... 100 14. NON TECHNICAL SUMMARY ......................................................................................................... 100 BVHP Baucau Viqueque Highway Project BAUCAU to VIQUEQUE SIMPLIFIED ENVIRONMENTAL IMPACT STATEMENT APPENDICES Appendix 1 – Selected Photographs Appendix 2 – Protected Areas abd Important Bird Areas in Baucau and Viqueque districts Appendix 3 – Sensitive Rceivers Appendix 4 – Public Consultation Meetings Appendix 5 – Guidance on Contractors Environmental Management Plan Abbreviations and Acronyms ADB – Asian Development Bank ANPM – National Authority Petroleum and Minerals CAFI – Conselho de Administração do Fundo Infrastrutura (CAFI) CEMP – Contractors site-specific environmental management plan CITES – Convention on International Trade in Endangered Species of Wild Fauna and Flora DEIA – Department of Environmental Impact Assessment (in NDE) DRBFC – Directorate of Roads, Bridges and Flood Control EA – Executing agency EDTL – Electricidade de Timor Leste EARF – Environmental assessment and review framework EHS – Environmental Health & 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 (Contractor) EO – Environment officer (in PMU) GRC – Grievance redress committee GRM – Grievance redress mechanism GOTL – Government of Democratic Republic of Timor-Leste IA – Implementing agency IES – International environmental specialist ICCAI – International Climate Change Adaptation