Initial Environmental Examination March 2021 Timor-Leste: Water Supply and Sanitation Investment Project - Lospalos City Subproject Prepared by the Directorate General for Water and Sanitation, Ministry of Public Works for the Asian Development Bank. (page left Intentionally blank) i ABBREVIATIONS WSSIP - Water Supply and Sanitation Investment Project ACMs - Asbestos Containing Materials ADB - Asian Development Bank DED - Detailed Engineering Design DGAS - Directorate General for Water and Sanitation DNAP - National Directorate for Protected Areas DNCP - National Directorate for Pollution Control DNSA - National Directorate for Water Services EARF - Environmental Assessment and Review Framework EHS - Environment, Health and Safety EIA - Environmental Impact Assessment EIS - Environmental Impact Statement EMP - Environmental Management Plan EMR - Environmental Monitoring Report ESS - Environmental Safeguard Specialist ESA - Environmental Safeguard Assistant FSTP - Faecal Sludge Treatment Plant GRM - Grievance Redress Mechanism IEE - Initial Environmental Examination IFC - International Finance Corporation MPW - Ministry of Public Works PA - Protected Area PD - Project Document PDC - Project Design Consultant PSC - Project Supervision Consultant PMU - Project Management Unit SEA - Superior Environmental Authority SEIS - Simplified Environmental Impact Statement CEMP - Site-specific Construction EMP SMASA - Municipal Water, Sanitation and Environment Services SPS - Safeguard Policy Statement TOR - Terms of Reference WDZ - Water Distribution Zone WTP - Water Treatment Plant WHO - World Health Organization WSS - Water Supply and Sanitation ii WEIGHTS AND MEASURES $ - United States Dollars oC - Celsius/centigrade amsl - above mean sea level dBA - decibel audible ha - hectare/s km - kilometre/s km2 - square kilometre/s lps - litres per second m - meter/s m3 - cubic meter/s mg/l - milligram/s per litre mm - millimetre/s µg/m3 - microgram/s per cubic meter NOTES In this report, “$” refers to United States dollars and “SMASA” refers to SMASA-Lospalos unless otherwise stated. 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. Your attention is directed to the “terms of use” section on ADB’s website. 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. iii TABLE OF CONTENTS EXECUTIVE SUMMARY .............................................................................................................. 1 1. INTRODUCTION .................................................................................................................... 4 1.1. BACKGROUND ................................................................................................................... 4 1.2. THE WSSIP AND LOSPALOS CITY ...................................................................................... 4 1.3. PURPOSE AND SCOPE OF THE INITIAL ENVIRONMENTAL EXAMINATION ................................. 5 1.4. DETAILS OF PROPONENT AND CONSULTANT THAT PREPARED THE REPORT .......................... 7 2. POLICY, LEGAL, AND ADMINISTRATIVE FRAMEWORK ................................................. 8 2.1. THE ADB ENVIRONMENTAL PROCESS ................................................................................ 8 2.2. GOVERNMENT ENVIRONMENTAL RULES AND REGULATIONS ............................ 11 3. DESCRIPTION OF THE PROJECT .................................................................................... 18 3.1. EXISTING CONDITION AND NEED FOR THE PROJECT ........................................................... 18 3.2. OVERVIEW OF THE PROJECT ............................................................................................ 19 4. ALTERNATIVES ANALYSIS .............................................................................................. 40 4.1. ‘WITHOUT-PROJECT’ OR ‘DO-NOTHING’ ALTERNATIVE'. ...................................................... 40 4.2. DESIGN ALTERNATIVE. .................................................................................................... 40 4.3. FAECAL SLUDGE TREATMENT PLANT (FSTP) LOCATION ALTERNATIVE .............................. 40 5. DESCRIPTION OF THE ENVIRONMENT ........................................................................... 43 5.1. PHYSICAL ENVIRONMENT ................................................................................................. 43 5.2. BIOLOGICAL PROFILE ...................................................................................................... 46 5.3. SOCIO-ECONOMIC AND CULTURAL ENVIRONMENT............................................................. 52 5.4. SITE-SPECIFIC ENVIRONMENTAL & SOCIAL FEATURES ...................................................... 56 6. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES .............. 67 6.1. OVERVIEW OF IMPACTS ................................................................................................... 67 6.2. IMPACT ANALYSIS ............................................................................................................ 67 7. INFORMATION DISCLOSURE, CONSULTATION, AND PARTICIPATION ..................... 92 7.1. CONSULTATION AND PARTICIPATION UNDER THE IEE PROCESS ......................................... 92 7.2. CONSULTATION IN UPCOMING PROJECT PHASES ............................................................... 94 7.3. INFORMATION DISCLOSURE .............................................................................................. 95 8. GRIEVANCE REDRESS MECHANISM .............................................................................. 96 8.1. GRIEVANCE PROCEDURE ................................................................................................. 96 9. ENVIRONMENTAL MANAGEMENT PLAN ........................................................................ 98 10. CONCLUSION AND RECOMMENDATIONS ................................................................ 100 APPENDIXES ........................................................................................................................... 101 APPENDIX 1. RAPID ENVIRONMENTAL ASSESSMENT CHECKLIST AND PRELIMINARY CLIMATE RISK SCREENING CHECKLIST ............................................................................................................ 102 APPENDIX 2. SAMPLE GRIEVANCE REDRESS FORM .................................................................. 116 APPENDIX 3. MAPS FOR WSSIP – LOSPALOS CITY .................................................................. 117 APPENDIX 4. WATER QUALITY TEST REPORT (JICA & MASTERPLAN) ....................................... 121 APPENDIX 5. LOSPALOS PUBLIC CONSULTATION MEETING NOTES (5TH OCTOBER 2020)............ 142 APPENDIX 6. SELECTED PHOTOGRAPHS OF THE PUBLIC CONSULTATION FOR LOSPALOS CITY ... 145 APPENDIX 7. ATTENDANCE SHEET OF THE STAKEHOLDERS DURING PUBLIC CONSULTATION ...... 148 APPENDIX 8. SPOIL MANAGEMENT PLAN ................................................................................. 156 APPENDIX 9. MEETING NOTES – NATIONAL DEPARTMENT OF CULTURAL PATRIMONY, SECRETARY OF STATE FOR ART AND CULTURE (SEAC) ON THE 7TH & 22ND SEPTEMBER 2020 ........................ 158 APPENDIX 10. ATTENDANCE SHEET – SEAC ......................................................................... 160 iv APPENDIX 11. ENVIRONMENTAL LICENSES FROM THE DISTRICT CAPITALS WATER SUPPLY PROJECT IN PANTE MACASSAR AND MANATUTO CITIES .............................................................. 163 APPENDIX 12. APPLICABLE ENVIRONMENTAL QUALITY STANDARDS ........................................ 172 APPENDIX 13. LOSPALOS – PROPOSED WATER SUPPLY SYSTEM – GENERAL PLAN ................ 176 APPENDIX 14. COVID-19 PROTECTION AND MITIGATION MEASURES ...................................... 178 APPENDIX 15. LOSPALOS SOCIAL PUBLIC CONSULTATIONS LIST OF PARTICIPANTS (SUCO HOME AND FUILORO)……………………...…………………………………………………………………180 LIST OF FIGURES Figure 1 EIA and IEE process under DL5/2011 – Steps and Timing .......................................... 13 Figure 2 Lospalos Water Sources ............................................................................................... 20 Figure 3 Lospalos City - Project Scope and Components .......................................................... 21 Figure 4 Flow Diagram for Lospalos proposed Water Distribution System (source: AdP- TL/Engidro, 2020) ........................................................................................................................ 23 Figure 5 Example of Distribution areas and existing installation ................................................. 24 Figure 6 New Boreholes and pump testing ................................................................................. 28 Figure 7 Lospalos Water Sources Scenario (North System) ...................................................... 30 Figure 8 Lospalos Water Sources Scenario II (South System) ................................................... 30 Figure 9 Laying of Transmission and Distribution Lines Along a Road. Typical Cross Sections 31 Figure 10 Typical Double Trench Transmission Mains Service .................................................