SOCIALIST REPUBLIC OF VIETNAM LAO CAI PEOPLE'S COMMITTEE Public Disclosure Authorized RURAL ENERGY 2 PROJECT EXTENSION VOL. 4 FEASIBILITY STUDY LAO CAI PROVINCE Public Disclosure Authorized Volume 2 ENVIRONMENTAL ASSESSMENT AND ENVIRONMENTAL MANAGEMENT PLAN Public Disclosure Authorized Project Manager : Nguyen Due Quyet Ha Noi, December 2008 Public Disclosure Authorized Mai Xuan Thanh RE2 Project Extension - Lao Cai Province Environmental Im~actAssessment LAO CAI PROVINCIAL POEPLE'S COMMITTEE LAO CAI RE2 PROJECT MANAGEMENT UNIT WB credit VN - 4000 ENVIRONMENTAL ASSESSMENT AND ENVIRONMENTAL MANAGEMENT PLAN Vietnam Rural Energy II Extension Lao Cai province Prepared by Thanh Nam Investment Consultant & Electric Construction Joint Stock Company Hanoi, September 2008 A Thanh Nam Investment Consultant & Electric Construction Joint Stock Company 1 RE2 Project Extension - Lao Cai Province Environmental Impact Assessment 1, INTRODUCTION AND SCOPE OF WORK 1.I. Objectives of the Project 'The development objectives of ,the proposed Rural Energy II Project are to assist the Government of Vietnam to alleviate poverty in the rural areas by providing basic infrastructure service such as electricity and access to general services, for improving living conditions and productivity. The Project will assist the Government of Vietnam to implement its national objective of providing electricity to about 12 million rural households through: - An effective strategy for rural electrification with special focus on provision of energy to tlie remote mo~~ntainousareas; - Rehabilitating, upgrading and expanding the rural power system in order to meet the demand for power supply for future socio-economic development; - Strengthening reliability and quality of power networks, reduce voltage and electricity losses on the grid, lower rural consumption price, improve businesses efficiency and rural power management ability of local power management boards; - Refurbishment of the existing rural power network to increase reliability and quality of supply, including reduction of technical and non-technical losses; this Project incorporates 17 communes in 7 districts (Bao Thang, Bao Yen, Van Ban, Si Ma Cai, Bat Xat, Muong Khuong and Lao Cai city) of Lao Cai province. - Extension of existing power networks to supply additional households; - Assisting local District and Commune committees to improve power system management processes and improve business efficiency, to provide electricity reliably, safely and at reasonably cost; - Review rural power management models, to establish power management units of legal standing, with economic independence and the managerialltechr~icalskills to operate effectively and profitably, repaying loaned funds; - Expanding 'the use of renewable energy for the off-grid systems to serve 'the rural load in the remote and isolated areas, where feasible and economically practicable; 1.2. NEED FOR PROJECT INVESTMENT Based on the forecast data on econorr~icdevelopment, power demand, the current situation of the existing power distribution network of the Project's commune. The existing distribution network is degraded, not synchronous. Power losses are very high. The alignment of power lines is not well designed. Many types of poles are existed in .the network. The alignment of power lines is not well designed. There are also many types of electricity meters. In the past in order to save money, the distribution lies were created to go across gardens, ponds etc. The conductor is overhead type and not covered by any insulating materials8,so it cause a lot of risk on safety to local people. The Project is planned to implemented in order to: - Improve the quality of the existing distribution network in the Project's communes. - Increase the safety management of the distribution network; - Reduce power losses; - Increase electricity supply for the Project's communes; - Change the form for management model of rural power network; - Gradually modernize the distribution power network. Thanh Nam Investment Consultant & Electric Construction Joint Stock Company 2 RE2 Project Extension - Lao Cai Province Environmental Impact Assessment 1.2. Commune selection criteria 1.2.1. General criteria To be voluntary participants in the Project and understand requirements and regulations of World Bank and the Government of Vietnam to carry out RE II Project; To be willing to convert the communes power management model to legal local distribution units to control LV networks; To have potential for economic development; To have an acceptable capital recovery rate; Revenue from power business can cover management, operation and funding costs. 1.2.2. Criteria for selection of communes for rehabilitation Power losses exceeds 20%; aged power networks degraded and require refurbishment; Power demand is substantial (over 500 households); Power demand for industrial production is substantial (over 20%); Number of electrified communes over 80%; Average power consumption rate power household in substantial; estimated annually 500 kWhlhousehold. 1.2.3. Criteria for commu'nes to be connected Number of households connected to power network is Provincial communes is bellow the average (60%); Customers are able to pay cost of connection and subsequent power bills; Communes have potential for development in agriculture, forestry and handicraft, which would be enhanced if electrified; Communes in the poorest communes list; Communes in the assistance program of World Bank. Communes are ready to adopt the management model of power network. Thanh Nam Investment Consultant & Electric Construction Joint Stock Company 3 RE2 Project Extension -Lao Cai Province Environmental Impact Assessment Table 1.1. Project communes Name of communes NabThana dirtrid I 3 I 'Thai Nien / 4 1 Gia- .-. Phu. - 15 Phu Nhuan Lao Cai city 6 Dong Tuyen 7 Van Hoa 1 1 Bao Yen district 1 8 Dien ~uan- 9 Kim Son Van Ban district I 12 vo Lao 13 Van. Son-. I Si Ma Cai district 14 Nan San Bat Xat district 15 Ban Qua 16 Den Thang - Muong Khuong district 17 Ta Thang - Thanh Nam Investment Consultant & Electric Construction Joint Stock Company 4 RE2 Project Extension - Lao Cai Province Environmental Impact Assessment 2. PROJECT DESCRIPTION Low voltage part of the Project is consisted of 207.771 km low voltage transmission line, from which: - Rehabilitation line: 92.712km . - New construction: 115.059km Total number of energy meters is 11,848 sets. Provincial People committee will be the Project Owner for the Project. 2.3. INVESTMENT STRUCTURE OF THE PROJECT Table 2.1. The investment structure of the Project (VND) ---- Items .-Cost estimated -- 3 - Management cost 1.883.426.201 1 3 1 Other cost I 1.557.432.632 1 1 4 I Contingencies 8,373,992,aW 1 Total 92,739,728,4a 2.2. PROJECT COMPONENTS Table 2.2. Project's components No of energy Length of LV District Lo::$ Lo::$ 1 meters ( line [rn) 1 1 ' Bao Thang 5 4,176 - 73,066 2 Lao Cai city 2 .- - 758 11,604 3 Bao Yen 4 2,306 40,355 4 Van Ban 2 2,776 36,128 5 Si Ma Cai 1 290 4,204 6 Bat Xat 2 1,383 36,832 7 Muong Khuong 1 159 5,584 TOTAL 17 1 1,848 207,771 Thanh Nam Investment Consultant & Electric Construction Joint Stock Company 5 RE2 Project Extension - Lao Cai Province Environmental Impact Assessment 2.3. BRIEF DESCRIPTION OF NATURAL AND SOCIAL CONDITION OF THE PROJECT'S PROVINCES Geographical position and topography Lao Cai is mountainous province among northern border provinces of Vietnam. More than 70% of land is high land. There are two high mountain chains, Hoang Lien Son and Con Voi. The highest peak is 3,143 m. Topography of Lao Cai is very complicated, high slope, many valleys, many abysses, tloods, land slides etc. Natural area of Lao Cai is 6,360.76km2. Population of Lao Cai is 576,850 people; Average population density is 91 people1 km2. There are 25 ethnics living in Lao Cai provinces. Lao Cai is consisted of 8 districts, 1 city (Lao Cai) and 164 communes and wards. Climate Lao Cai has monsoon climate characteristics. Hot and rainy season from April to October. Cool season and dry season from November to March of the next year. Average rainfall: is from 1,800 mm to 2,100 mm. Average humidity: 84% Average temperature is 22.9 OC. Land resource Total natural land: 636.076 ha Agricultural land: 70.729 ha Forested land: 282.1 94ha; Specially used land: 26.043 ha; Homestead land: 3.217 ha Water resource Lao Cai has dense river system. River and stream system is not evenly distributed, 0.3 to 1.7 kmlkm2. There are more than 10,000 big and small rivers, streams in the province. There are two big rivers crossing the province, they are Red river and Chay river. Protected areas Hoang Lien Son National Park is San Sa Ho, Lao Chai, Ta Van and Ban Ho commune, Sa Pa district and Muong Khoa, Than Thuoc communes, Than Uyen district. There is no Project's commune is located in the protected area. Hoang Lien Son- Van Ban Proposed Nature Reserve is located in Nam Xay, Nam xe, Minh Luong, Tham Duong, Duong Quy, Da Thang and Nam Chay communes, Van Ban district. There is no Project's commune is located in the protected area. Industrial activities: tea processing, production of agricultural products and other consumable goods, rock exploitation of natural resources, etc. Agricultural and husbandry: rice cultivation, industrial trees, dry crop, fr~~its. 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