Initial Environmental Examination October 2020 Lao People’s Democratic Republic: Greater Mekong Subregion East-West Economic Corridor Agriculture Infrastructure Sector Project Prepared by the Department of Irrigation, Ministry of Agriculture and Forestry and the Asian Development Bank. 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 INITIAL ENVIRONMENTAL EXAMINATION Greater Mekong Subregion (GMS) East-West Economic Corridor (EWEC) Agriculture Infrastructure Sector Project (AISP) Salavan Province, Khong Xedon District Chan-Lan-Xe Subproject Executive Summary 1. This document is an updated Initial Environmental Examination (IEE) and Environmental Management Plan (EMP) based on the completed detailed engineering design (DED) for the Chan Lan Xe agriculture infrastructure subproject, which involves irrigation scheme rehabilitation and agricultural access road improvement. The IEE is prepared according to the ADB’s Safeguard Policy Statement of June 2009 and the Decree No. 21/gov 2019 of Lao PDR and ADB Safeguard Policy Statement (2009) requirements. 2. The engineering design consultants (EDC) submitted the DED IEE update report on 24 June 2020. The report is attached as Annex 6.8 to this IEE, and includes: a. Comparison of data between concept engineering design (CED) and detailed engineering design (DED). b. Water balance to show sufficient water was available to irrigate the increased area. c. Mapping of the changes in the distribution system layout and increased irrigation. d. Summary of affected land area in Chan Lan Xe subproject. e. Summary of affected farmers and paddy field areas. 3. The DED has been prepared in close consultation with the local authorities and beneficiaries. In this regard, the changes to the CED have been thoroughly discussed and the implications accepted and endorsed by the local stakeholders. 4. The irrigated area had slightly increased from 300ha in CED to 317.47ha in DED. The irrigation canal and structures including main, secondary and tertiary canals and controlling structures were changed to accommodate the increase irrigated areas. 5. The Greater Mekong Subregion East West Economic Corridor Agricultural Infrastructure Sector Project (GMS-EWEC-AISP, or AISP in this document) would comprise improvements to productive rural infrastructure (PRI) and provide technical and advisory support to beneficiary communities in formation and strengthening of water user groups, technical support and capacity building for extension services and support in post-harvest handling, produce storage and marketing. It would provide project management support and capacity building for provincial and district level offices which would take the lead role in project implementation, in accordance with the Government’s decentralization policy of 2000. It is a sector project, and specific subprojects for the improvement of productive rural infrastructure in the two project provinces would be prepared and implemented. 6. An Environment and Assessment Review Framework (EARF)1 was prepared for the project setting out the procedures for screening and assessment of environmental impacts, reporting and management for subprojects in line with the Government of Lao PDR Environmental Impact Assessment (EIA) Decree no. 21/gov 2019) and ADB Safeguard Policy Statement (2009) requirements. 7. Investment projects are categorized according to a schedule in the EIA decree. For small-scale irrigation, those with a command area of between 100 and 2,000 ha are category 1 requiring an Initial Environmental Examination (IEE). The Chan Lan Xe’s command area of 317.47 ha belongs to category 1 in accordance with EIA decree no. 21/gov 2019. 8. The Rapid Environmental Assessment (REA) checklist from the EARF was used to screen the subproject based on literature review, site visits and discussion with local beneficiaries. This subproject is classified as Environment Category B. A Preliminary Climate Risk Screening using a checklist developed for the EARF scored the subprojects as medium risk. Description of the Subproject 9. Chan Lan Xe Subproject. The Chan Lan Xe irrigation scheme and access road subproject is located in the Khongxedon District, at a distance of about 11.0 km east of the district center and 80.0 km from the Salavan Provincial Capital through Road 15. The irrigation scheme was originally constructed in 1996, through joint initiative between the Provincial Agriculture and Forestry Office (PAFO) and the local WUG. It was subsequently upgraded in 2008 through concrete lining of selected canal reaches. The components in the Chan Lan Xe irrigation scheme involves a pumped scheme system served by two (2) pump stations operating from moored pontoons located on the Xe Don River in the villages of Chan Lan Se and Tanpiew. The total existing dry season irrigable area (command area) is in the order of 150 ha and dry season irrigation rice is currently grown on about 65 ha. The proposed improvements will enable dry season cropping area to increase to 317.47 ha, thereby producing a wet and dry season crop, and serving 237 households from four villages: Tanpiew, Donphaiban, Chanlanxe and Tadsoum. 10. As described in the DED IEE Update (Annex 6.8): • The Number of beneficiary households in the command area is 237 households , from 4 villages such as: Tanpiew, Donphaiban, Chanlanxe and Tadsoum. • The Affected Persons (APs) and type of asset and land are summarized as follows: - The irrigation canal would be through 143 parcels of paddy field with a total area of 213.42 ha. The expectation of paddy field affected by irrigation canal is 11.28 ha (see details in Annex 4 [of Annex 6.8]) 1 https://www.adb.org/projects/documents/gms-ewec-agriculture-infrastructure-sector-project-earf 11. The number of paddy field owners affected by the canal construction as per detailed engineering design is 134 households from 4 villages such as: Chanlanxe (28 households), Tanpiew (79 households), Donephaiban (26 households) and Tadsoum (1 household). The actual affected households will be examined again when the affected household list is to be formulated. 12. The scheme is supplied with water from Xe Don River, served by two pump stations operating from moored pontoons located at the two villages of Chan Lan Xe and Tanpiew. Water discharges by gravity from a stilling basin through a rectangular lined main canal (MC) and cross a village access road to an ungated division box to farmer’s field blocks either directly from the main canals or via secondary and tertiary canals. Present Condition and Characteristics of the Subproject 13. The irrigation scheme water source is the Xe Don River which is a perennial river with regular fluctuations in water level throughout the year. The water source is assured and the potential demand has been estimated at 3.4 million-m3 per year. 14. The existing scheme layout is a semi-farmer built irrigation system which has significantly been deteriorated with age. Few lined canals and control structures were built and those structures built are not gated, therefore, there is no water control. What control exists is through temporary earth and brush wood or plastic sheet checks. 15. The scheme is originally served by two pump stations operating from moored pontoons located on the Xe Don River. Existing pumping is via centrifugal units driven by electric motors powered off the national grid. 16. The existing headworks sites are on uniform, deep and stable stream lines; but they will not be suitable for the proposed consolidating system in terms of effective water distribution. The existing pontoons are considerably in fair condition and their sizes would not fit with the proposed three-pump installation. The pump sets have significantly deteriorated and more frequent repairs are needed. Rehabilitation of the Existing Subproject 17. The irrigation scheme rehabilitation will increase the command area to 317.47ha through the construction of new canals with related water control structures. The rehabilitation plan aims to improve the efficiency of the water distribution network and extend the network to irrigate land to the north and south of the existing command areas and bring an additional 167.47ha into production. 18. The rehabilitation of the water distribution system will include one (1) new main canal, eight (8) secondary canals, six (6) tertiary canal and support for construction of quaternary (farm) canals. Appropriate water control structures (254) will be built to regulate discharge in the system. Irrigation service roads will be constructed along the main, secondary and tertiary canals to provide machinery access to cropped areas and O&M of the irrigation infrastructure. Existing natural drainage system improvements and drainage continuity will be maintained through the cross drainage structures. 19. The improvements include consolidation of the two existing pump stations into one headworks. The proposed location of the headworks is in the middle of the command area between Chan Lan Xe and Tanpiew villages where the source river has a uniform and deep streamlines and a gentle and stable slope. 20. The natural drainage network was considered to be adequate for drainage of the cropped area. The drain improvement will be limited to the construction of cross drainage structures where the canals cross natural drains Policy, Legal and Administrative Framework 21. The 8th National Social and Economic Development Plan (8th NSEDP) emphasizes raising agricultural productivity as a development priority since the majority of the Lao PDR workforce is currently engaged in agriculture. One of the biggest challenges that Lao PDR faces is the proper management and protection of the environment and natural resources (land, water resources, forests, minerals, biodiversity).