Environmental and Social Monitoring Report Annual Report: January-December 2020 August 2021 Lao PDR: Water Supply and Sanitation Sector Project (Additional Financing) Prepared by the Ministry of Public Works and Transport for the Asian Development Bank. This environmental and social monitoring report 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. Integrated Safeguards Monitoring Report January – December, 2020 Lao People’s Democratic Republic Water Supply and Sanitation Sector Project Loan Number: L3041- LAO Grant Number: G0604 - LAO August 2021 Executive Summary 1. This report covers safeguards implementation monitoring of both Water Supply and Sanitation Sector Project (WSSP) and Water Supply and Sanitation Sector Project – Additional Financing (WSSP-AF) from January to December 2020. During 2020 the project implementation has been impacted by the COVID-19 pandemic as the Lao government has issued a number of mitigation measures. The implementation of the projects, however continued despite restrictions on travelling and gatherings. Some of the contractors have also experienced shortage of some construction materials and limitation to mobilize specialized staff. At the end reporting period the overall progress of WSSP implementation progress is approximately 82% and for WSSP-AF implementation approximately 46%. The following chapters describe the main activities and status of the safeguard in each outputs. 2. The WSSP and (WSSP-AF of the Ministry of Public Works and Transport (Executing Agency) supports the development of small district towns through the improvement of water supply and sanitation services. Consistent with the Government’s urban water supply and sanitation sector policy and investment plan. The impact of WSSP and WSSP-AF will be expanded access to quality and reliable piped water supply and sanitation services for the urban population in the Lao PDR. The outcome will be improved performance of participating provincial nam papa (PNP) in delivering sustainable water supply and sanitation services. The Project adopts a sector approach following a prioritized list of subproject towns based on the water supply investment plan The Project will comprise of: (i) improvements to the water supply system and (ii) enhanced community action in urban water supply and sanitation. 3. The WSSP is implemented through a sector loan (L3041) from the Asian Development Bank (ADB) and WSSP-AF is financed by a grant (G0604) from ADB. The Ministry of Public Works and Transport (MPWT) and the Provincial Department of Public Works and Transport together with the PNPs or provincial water utilities (Implementing Agencies) will be responsible for identifying, prioritizing, appraising, selecting and approving subprojects in accordance with the Government and ADB’s policies and procedures. 4. The WSSP aims improving the water supply and sanitation situation of 9 subprojects in six provinces, while WSSP-AF consists of 6 subprojects in 4 provinces. Basic data of the subprojects is provided in Table 1 and Table 2 below. 5. Water supply development and rehabilitation will be carried out on existing PNP water supply systems and expand services to unserved communities in the most densely populated suburbs of provincial capitals and new systems constructed in district towns. The scope of works will cover the expansion, replacement and rehabilitation (if required) of: (a) water intakes from surface, spring or groundwater sources; (b) raw water transmission; (c) water treatment facilities; (d) distribution network; (e) service reservoirs; (f) individual metered service connections; and (g) improved office/workshop/store facilities for the PNP branch. 6. Village environmental improvements (VEI) will promote demand-driven, community- managed environmental improvements, such as construction or rehabilitation of small-scale community improvements (e.g., drains and village access roads). Core villages within a small town will be eligible to participate, including those that agree to implement, operate and maintain improvements; make a cash contribution towards the capital costs of the improvements; and select specific improvements in a participatory, socially inclusive and transparent manner. 7. New public sanitation facilities will be constructed or repaired in strategic areas where the O&M can be contracted to a nearby business or social entity. Where septage disposal facilities are not available in the subproject area, the project will provide technical assistance and grant funds for constructing septage disposal facilities at a suitable location on government land. 8. Construction water supply system and public latrines will be carried out under a civil works contract. Four out of 11 contracts financed from WSSP are completed and seven are ongoing. Two contracts were awarded during the reporting period, namely Sanamxay civil works contract (WS-CW-36) on 26 October 2020 and Pakxan rehabilitation package (WS-REHAB1) on 25 December 2020. Under WSSP-AF four out of 6 contracts are under construction, civil works contract for Viengkham WS-CW-40 was awarded on 30 December 2020 and one subproject is in procurement stage. 9. Implementation of village environmental improvements will be carried out under one civil works contract per province i.e. two subprojects in one package. The VEI works of Pha Oudom completed in May 2019 and completion of defects liability period certificate was issued on 20 July 2020, Luang Namtha and Long VEI works were completed in September 2019 and defects liability certificate is being processed. VEI works contracts of Pakxan and Pakkading were completed in June 2020 and Xayabury and Botene subprojects civil works were completed in September 2020. 10. Summary of IEE and EMP Implementation. All subprojects being implemented are classified as Category B projects and the Initial Environmental Examination (IEE) reports and Environmental Management Plans (EMP) have been approved by ADB and disclosed on the ADB’s web page. 11. Under WSSP the Updated IEE/EMP report for Sanamxay subproject was resubmitted to ADB in December 2019 and disclosed on the ADB’s web page in January 2020. Pakxan District, Borikhamxay Province Updated Initial Environmental Examination submitted on April 2020 and approved disclosed on the ADB’s web page in June 2020. Under WSSP-AF Viengkham and Namthouam-Nambak District, Luang Prabang Province Initial Environmental Examination submitted were submitted to ADB in September 2020. The IEE for Namthouam subproject was disclosed on the ADB’s web page in October 2020. 12. Based on the contractors’ progress reports and PIA Consultant’s observations there are no major environmental issues in the subprojects as the contractors are following most of the set requirements of the EMPs. However, construction supervisors have reminded the contractors to provide personal protection equipment and reminded workers to wear them. 13. No grievances on environmental issues or issues on occupational health and safety (OHS) or public safety have been reported, despite that contractors’ workers were not always wearing personal safety equipment. 14. IEE/EMP: Key Issues and Corrective Actions. The contractor of WS-CW-31 in Xayabury (WSSP-AF) improved waste management at the WTP construction site. The CSCs have reminded the contractors to provide and workers to wear personal protective equipment while working at the construction sites. Due to a change of location of the elevated reservoir of Pakxan subproject an amendment to the Initial Environmental Examination was prepared and disclosed by ADB in April 2020. The updated IEE/Emp for Sanamxay subproject was disclosed on ADB web page in January 2020. 15. Summary of Social Safeguards Implementation. For all subprojects being constructed IR documents have been prepared, reviewed by ADB and disclosed on ADB web page. All subprojects are classified as Category B or Category C projects for involuntary resettlement. As part of preparation of Feasibility Study (FS) reports of two new subprojects in Luang Prabang (WSSP-AF) province LAC DDR reports for Nam Thouam and Vieng Kham subprojects were submitted for review to ADB in June 2020. 16. Twelve grievances on EMP implementation were reported and resolved. No grievances on land acquisition or compensation have been reported by PIUs. 17. LACP: Key Issues and Corrective Actions. During the reporting period Sanamxay subproject an Updated Land Acquisition and Compensation Plan was approved in January 2020. Due new location of the elevated reservoir a Land Acquisition Corrective Action Plan for Pakxan was prepared by PIA Consultant and approved by ADB in June 2020. 18. A new Independent External Resettlement Monitor (IERM) to carry out monitoring and provide support to PIUs and advise Affected Persons in implementation of LACPs was hired by PCU during the reporting period. The IERM report for Xamneua and Sopbao subprojects (WSSP- AF) were completed by the previous IERM in April and June respectively. The new IERM carried out site visits to Sanamxay and Dakcheung subprojects of WSSP and Samakkhixay and Lamam subprojects of WSSP-AF