Environmental and Social Safeguards Monitoring Report Annual Report December 2018 MYA: Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project Prepared by Project Management Unit, Ministry of Hotels and Tourism (MOHT) 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. CONTETS Page EXECUTIVE SUMMARY 1. INTRODUCTION . 1 1.1 General Information . 1 1.2 Project Classification . 1 2. IMPLEMENTATION OF ENVIRONMENTAL SAFEGUARDS . 1 2.1 Environmental Assessment Report of Production Processes for Fruit Jam, Biscuit, Soap and Natural Dye . 1 2.2 Rapid Environmental Assessment (REA) of Proposed Production/Training Centers . 2 3. IMPLEMENTATION OF SOCIAL SAFEGUARDS . 3 3.1 Objectives and Methodology of the Baseline Survey . 3 3.2 Basic Profile of the Value Chain Households . 3 3.3 The Weaving Value Chain . 4 3.4 The Bamboo Value Chain . 5 3.5 The Snack Value Chain . 6 3.6 The Fruit Jam Value Chain . 8 3.7 Control Households . 9 3.8 Conclusion and Recommendations on the Baseline Survey . 9 4. SAFEGUARDS MONITORING MISSION 11 4. COMPLIANCE WITH ENVIRONMENT AND SOCIAL SAFEGUARDS . 11 4.1 Screening of Environmental Impacts . 11 4.2 Mitigation Measures . 11 4.3 Consultation with Local People . 11 4.4 Disclosure of Information . 11 4.5 Environmental Management Plan . 11 4.6 Pollution Prevention . 12 4.7 Occupational Health and Safety . 12 4.8 Impacts on Physical, Cultural Resources . 12 4.9 Grievance Redress Mechanism . 12 5 CONCLUSION AND RECOMMENDATIONS . 12 6 PROPOSED ACTIONS FOR THE NEXT REPORTING PERIOD . 13 ANNEXES ANNEX 1 Environmental Assessment Report ANNEX 2 Due diligence report 03.03.2018 ANNEX 3 Union of Myanmar’s Environmental Regulatory Framework ANNEX 4 Land sharing Form ANNEX 5 Mitigation Measures for Construction Activities ANNEX 6 Photos ANNEX 7 Rapid Environmental Assessment of Multipurpose Centers 2 EXECUTIVE SUMMARY The “Economic Empowerment of the Poor and Women in the East-West Economic Corridor Project (EEPW-EWECP)” received from Asian Development Bank (ADB) through a funding from Japan Fund for Poverty Reduction (JFPR), a support amounting $3.45 million for the period 2017-2019.The Project aims to support micro and small enterprise (MSE) development, and increased employment and economic opportunities for the poor and women selling crafts and local food to tourists and residents in the east-west economic corridor. This project is an integrated approach to enable micro entrepreneurs to access technical training, skills in business management, appropriate technology, finance, and markets to build competitive and sustainable businesses and contribute to reducing household poverty. Environment In accordance with the ADB’s Safeguard Policy Statement, the Project is classified as Category C. These are projects where activities are likely to have minimal or no adverse environmental impacts. An Environmental Assessment and Review Framework was prepared to; (i)describe the proposed activities to be financed under the Project; (ii) specify the requirements that will be followed in relation to project screening and categorization, environmental assessment including provisions for meaningful consultation with stakeholders and information disclosure requirements and, where applicable, safeguard and environmental criteria that are to be used in selecting subprojects and/or components; (iii) specify implementation procedures; (iv) specify monitoring and reporting requirements; and (v) describe the responsibilities of the clients and of ADB in relation to the preparation, implementation, and progress review of safeguard documents of subprojects1. The environmental impact of the activities in Output 3 were reviewed and assessed by the International Environment Safeguards Specialist (under OIDCI contract). An Environmental Assessment Report (Annex 1) of production processes for fruit jam, biscuit, soap and natural dye was conducted by the International Environment Specialist in compliance with ADB’s Safeguard Policy. Also included in this report are the findings of baseline survey as part of the social development activities. The baseline survey for the Project collected information from 18 target villages and four value chains in the last quarter of 2017. This survey was aligned to that schedule to produce a situation analysis for the four value chains. Considering the participants to the survey and their possible product affiliation, a combination of census approach (for bamboo, snack, and fruit jams) and random sampling (for weaving) was adopted. This process ended up with 229 treatment households, 69 control households; and 20 micro and small enterprises (MSEs) operated in the four value chains. The survey was conducted using the computer-assisted personal interviewing (CAPI) approach. Visits to all the four target townships were made in advance prior to data collection to facilitate logistic arrangements. Results of the baseline survey showed that all of the four value chains are well justified by its potential for being inclusive for women, especially the ethnic minority and poor women – who are the primary target beneficiaries of the EEPW-EWEC Project. In addition, all of these value chains have been in the target villages for generations and hence many villagers were most familiar with one of these four value chains selected by the Project for support. The Project environmental requirements comply with ADB safeguard policy (2009) and include: (i) environmental assessment, (ii) planning and managing impact mitigations, (iii) preparing 1 Environmental Assessment and Review Framework. November 2015. MYA: Economic Empowerment of the Poor andWomen in the East-West Economic Corridor. Prepared by the Ministry of Hotels and Tourism. Government of the Union of Myanmar. 3 environmental assessment reports, (iv) disclosing information and undertaking consultation, (v) establishing a grievance mechanism, and (vi) monitoring and reporting. The processing facilities for the production of fruit jam, biscuit, soap and natural dye were included in this Project with the support of local residents. Only one facility is been built in Chaungzone township up to December 2018 (for biscuits). The project plan to build the more facilities in the following locations: • Mudon for yarn dyeing and weaving (expected to start by January 2019); • Changzone for bamboo crafts (expected to start along II quarter 2018), and • Khaik Hto for biscuit and jam production & bamboo craft production (expected to start during the first and second quarter of 2019) In compliance with the requirements of ADB Safeguards Policy, four (4) Rapid Environmental Assessment (REA) have been prepared to determine the possible impacts of these production centers. Based on the REA, very minimal earth moving activities will be done in Naing Hlon and Tan Kon Tine (Mudon township) and therefore minimal air pollution impacts due to dust can occur. No water pollution, and solid waste generation will likely be minimal and manageable due to existing township system on waste management. These production and training centers will be made of light materials and will not involve use of heavy equipment and pollutive materials and chemicals. Solid waste generation in these temporary sites will likely be minimal and manageable due lesser number of people in the area during day time only, and the existing township system on waste management. All other parameters in the REA are not significant to cause negative impact on the environment. Most of the safeguards criteria have been complied by the Project. Overall, Output 3 of this Project has minimal environmental impacts due to small scale nature of production. However, when large-scale production will be required in the future, it is recommended that the process flow be reviewed again to determine the level and magnitude of environmental impacts and the mitigation measure that should go with large-scale production. Involuntary Resettlement and Indigenous People As indicated in the Project PAM, the safeguards requirements for Indigenous People and Involuntary resettlement are: 1. No civil works or infrastructure upgrading shall cause any IR and IP impacts. 2. Land acquisition will not cause: (i) Involuntary resettlement of the formal or informal land users, squatters or encroachers of the land, (ii) Dispossession of assets belonging to the ethnic minority and/or vulnerable groups, (iii) Significant loss of assets or source of income/ livelihood of the owner of the donated assets/lands. 3. When government land is being used, it has to confirm with the IR and IP screening checklist for the civil works or infrastructure upgrading to be eligible for grant financing, and 4. Under any circumstances, the grant fund must not be used for purchasing of land for implementation of civil works or infrastructure upgrading. Next Safeguard Reporting Period For the next reporting period, an environmental compliance monitoring of the procedures during actual run of production for fruit jam, biscuits, soap and yarn dyeing should be conducted