Initial Environmental Examination Project Number: 44321-013 November 2019 Cambodia: Climate Resilient Rice Commercialization Sector Development Program Loans 3006/3007/8271-CAM Grants 0349/0350-CAM Prepared by Ministry of Economy and Finance for the Royal Government of Cambodia 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. KINGDOM OF CAMBODIA Nation Religion King Ministry of Economy and Finance Climate-Resilient Rice Commercialization Sector Development Program ADB Loans 3006/3007/8271 and Grants 0349/0350-CAM Initial Environmental Examination for Establishment of Paddy Drying and Storage Facility at Phou Poy Rice Mill in Chumnik Village, Anlong Vil Commune, Sangkae District, Battambang Province November 2019 CURRENCY EQUIVALENTS (November 2019) Currency Unit – riel (KR) KR1.00 = $0.00025 $1.00 = KR4, 000 ABBREVIATIONS ADB Asian Development Bank CLAC Commune Land Acquisition Committee DD & CS Detailed Design and Construction Supervision EHS Environmental, Health and Safety EIA Environmental Impact Assessment EMP Environmental Management Plan EQS Environmental Quality Standard IEE Initial Environmental Examination IEIA Initial Environmental Impact Assessment IRC Inter-ministerial Resettlement Committee MAFF Ministry of Agriculture, Forestry and Fisheries MEF Ministry of Economy and Finance MOE Ministry of Environment MOWRAM Ministry of Water Resources and Meteorology PDA Provincial Department of Agriculture PDOE Provincial Department of Environment PDOLVT Provincial Department of Labor and Vocational Training PDLMUPC Provincial Department of Land Management, Urban Planning and Construction PDS Paddy Drying and Storage Facility PGRC Provincial Grievance Redress Committee PIO Provincial Implementation Office PMO Program Management Office PRC Procurement Review Committee RDB Rural Development Bank RGC Royal Government of Cambodia RWG Resettlement Working Group SPS Safeguard Policy Statement TPD tons per day UXO Unexploded Ordnance WEIGHTS AND MEASURES Km – kilometer Kg – kilogram Ha – hectare m2– square meter mm – millimeter Page | ii TABLE OF CONTENTS EXECUTIVE SUMMARY ....................................................................................................... vi I. INTRODUCTION ..............................................................................................................1 II. POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK ................................................. 1 A. Government Environment Policy and Regulation ............................................................1 1. Law on Environmental Protection and Natural Resource Management ...................... 1 2. Environmental Impact Assessment Process Sub-Decree .......................................... 2 B. Evaluation Standards .....................................................................................................3 C. ADB Environment Requirement ......................................................................................5 D. Environmental, Health, and Safety Guidelines ................................................................. 7 III. DESCRIPTION OF THE SUBPROJECT AND PROJECT DESIGN ................................... 7 A. Subproject Provinces ....................................................................................................7 B. Subproject Scope..........................................................................................................8 C. Subproject Context........................................................................................................9 IV. DESCRIPTION OF THE ENVIRONMENT ....................................................................... 10 A. Physical Resources ...................................................................................................... 10 1. Topography, Geology and Soils .............................................................................. 10 2. Climate ...................................................................................................................10 3. Water Resources .................................................................................................... 12 B. Biological / Ecological Resources ................................................................................... 12 C. Socio-economic Resources ............................................................................................ 13 1. Items of Historical and Archaeological Significance ................................................. 13 2. Human and Economic Development ....................................................................... 13 1) Livelihoods ..................................................................................................... 13 2) Poverty Levels ............................................................................................... 14 3) Health ............................................................................................................ 15 4) Unexploded Ordinance ................................................................................... 15 V. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES ............... 15 A. Method of Assessment ................................................................................................. 15 B. Environmental Impacts Related to Location ................................................................. 15 C. Environmental Impacts Related to Construction ............................................................ 16 D. Environmental Impacts Related to Operation ................................................................ 17 E. Global, Trans-boundary and Cumulative Impacts .......................................................... 18 VI. ANALYSIS OF ALTERNATIVES ...................................................................................... 18 VII. INFORMATION DISCLOSURE, CONSULTATION AND PARTICIPATION ...................... 19 A. Consultations and Information Disclosure during design ............................................... 19 B. Further Information Disclosure ...................................................................................... 21 VIII. GRIEVANCE REDRESS MECHANISM ......................................................................... 21 IX. ENVIRONMENTAL MANAGEMENT PLAN ..................................................................... 23 A. Responsibilities for Environmental Management ........................................................... 23 B. Environmental Monitoring ............................................................................................. 24 1. Monitoring for Compliance with EMPs ..................................................................... 24 2. Testing for Noise and Dust Control ........................................................................ 24 C. Environmental Monitoring Reports ................................................................................ 25 D. Institutional Arrangement and Responsibilities .............................................................. 25 X. CONCLUSION AND RECOMMENDATIONS ................................................................... 25 XI. REFERENCES ................................................................................................................. 26 XII. ANNEXES ....................................................................................................................... 27 Annex 1: Agreement of Phou Poy Rice Mill with PDOE, Battambang .................................... 27 Annex 2: Water Quality Standard in Public Water Areas for Bio-Diversity Conservation ..... 29 Annex 3: Land Title of Phou Poy Rice Mill Issued by PDLMUPC ........................................... 30 Page | iii Annex 4: Existing Location of Phou Poy Rice Mill ................................................................. 33 Annex 5: Detail Design of PDS facility for Phou Poy Rice Mill ............................................... 34 Annex 6: Calculation of Capacity Including Raw Materials for PDS facility at Phou Poy Rice Mill .............................................................................................................................................35 Annex 7: Total Annual and Average Monthly Rainfall from 2011-2018 in Battambang ............ 36 Annex 8: Rapid Environmental Assessment (REA) Checklist........................................................ 37 Annex 9: Environmental Management Plan Summary) ............................................................... 42 Annex 10: Environmental Monitoring Plan .................................................................................. 49 Annex 11: List of participants in the consultation meeting ............................................................. 59 Page | iv LIST OF TABLES Table 1: Annex of Sub-Decree No 72 ANRK. BK. (SA II-A7) (Dated: 11 August 199) ............. 2 Table 2: Drinking Water Standards (2004) .....................................................................................