Initial Environmental Examination January 2018 Project 49387-002 Kingdom of Cambodia: Second Greater Mekong Subregion Tourism Infrastructure for Inclusive Growth Project Kep and Preah Sihanouk, Cambodia Prepared by Ministry of Tourism with the provinces of Kep and Preah Sihanouk for the Asian Development Bank. This is an updated version of the draft originally posted in March 2018 available on https://www.adb.org/projects/documents/cam-49387-002-iee. CURRENCY EQUIVALENTS (18 September 2017) Currency unit – Riel R R1.00 = $0.00024 $1.00 = R4,167 ABBREVIATIONS ADB – Asian Development Bank DAFF – Department of Agriculture, Forestry and Fisheries DOE – Department of Environment DPWT – Department of Public Works and Transport DOT – Department of Tourism DOWRAM – Department of Water Resources and Meteorology EA – Executing Agency EIA – Environmental Impact Assessment EMP – Environment Management Plan GMS – Greater Mekong Subregion Government – Government of Cambodia IEE – Initial Environment Examination IEIA – Initial Environmental Impact Assessment MOE – Ministry of Environment PAM – Project Administration Manual PMCES – Project Management and Civil Engineering Support Consultant PIU – Project Implementation Unit PPTA – Project Preparatory Technical Assistance PMU – Project Implementation Unit REA – Rapid Environmental Assessment RP – Resettlement Plan RGC – Royal Government of Cambodia GRM – Grievance Redress Mechanism SPS – Safeguard Policy Statement (2009) WEIGHTS AND MEASURES km – kilometer kg – kilogram ha – hectare In this report, “$” refers to US dollars. 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. 2 EXECUTIVE SUMMARY The second Greater Mekong Subregion (GMS) Tourism Infrastructure for Inclusive Growth Project will continue to develop small scale infrastructure to improve tourist facilities and develop and strengthen management capacity to enhance tourism at selected locations in Cambodia, the Lao PDR, and Viet Nam. In Cambodia three subprojects will be implemented in Kep and Preah Sihanouk provinces, which are addressed by the IEE presented herein. The 3 subprojects in the two provinces are listed below. Kep • Kep Solid Waste Management Improvements Preah Sihanouk • Preah Sihanouk Seaside Access and Environmental Improvements • Preah Sihanouk City - Koh Rong Passenger Pier Improvements Subproject Benefits Kep Solid Waste Management Improvements The existing arrangements for solid waste management in Kep are inadequate, characterized by low coverage, lack of sanitation awareness, and an open, unmanaged dumpsite. The subproject will address these problems by expanding the quality and coverage of solid waste collection and treatment services, develop a managed landfill site (9ha) on public land at the existing dumpsite, and support sanitation and waste management awareness programs. The upgraded solid waste management system will increase, and make more efficient solid waste removal from the streets and beach areas in Kep town. The upgraded solid waste management system will assist implementation of the sub-decree on Solid Waste Management (2013). The sub-decree provides technical standards for all activities related to disposal, storage, collection, transportation, recycling, dumping of municipal and hazardous waste. The location of the landfill has also been reviewed in respect of Ministry of Environment (2016) Guidelines for Landfill Site Selection. The subproject will benefit the Kep’s urban core (Sangkat, Sangkat Kep and around half of Sangkhat Prey Thom) with a residential population of 9,000, 95 hotels, and 52 restaurants/cafes, and various other commercial outlets. It will also support Kep city’s environmental goals, which were recognized in 2016 through an ASEAN Environmentally Sustainable Cities Award and in 2017 an ASEAN Clean Tourism Award. Options for waste collection tariffs and/or an environmental tax are being considered to support operational and maintenance costs of the landfill. The materials recovery facility (MRF) to be constructed at the upgraded landfill in Kep will organize, make safer and more efficient the current limited practice of solid waste recycling that is occurring at the existing dumpsite. The MRF will improve and make more sanitary the working conditions of garbage pickers while improving the efficiency and opportunities for he reduction, recycling and reuse of solid waste. The MRF will increase recyclables recovery using sanitary facilities and practices. The upgraded landfill and MRF will reduce pollution at the landfill site and 3 along the access road to the landfill. The managed network of modern waste cells overlying an impermeable liner, leachate collection and recycling, and gas capture and flaring at the landfill will protect groundwater, improve air quality, and reduce blowing solid waste at the site thereby improving the natural environment and working conditions of the waste pickers. The provision of new waste compactor trucks will prevent spillage of garbage along the access road to the landfill, and odor that was reported by residents along the road during the public consultations. The septage treatment facility (STF) at the upgraded landfill will contribute to overall environmental improvement in Kep town, and especially the crab market, by providing a location for septic tank sludge to be deposited and treated safely. Preah Sihanouk Seaside Access and Environmental Improvements Preah Sihanouk received 2.1 million visitors in 2016 and forecasts suggest visitor arrivals could rise to almost 4 million in 2026. Weak planning and ad hoc development of Ocheuteal and Otres beaches has led to poor pedestrian access, traffic congestion, unsanitary drainage with intermittent flooding, and lack of public amenities. This situation creates public health hazards for residents and tourists, deters private investment, and puts future tourism growth at risk. In addition to about 7 km of roads, drainage, and sidewalk improvements, and improvements to pedestrian and vehicular access to the beaches, the subproject will improve the tourist experience and comfort by providing 12, 35m2 public toilet blocks with showers. Implementation of the subproject will be coordinated with the ADB-financed Second Corridor Towns Development Project and Provincial Water Supply and Sanitation Sector Project to ensure that all road improvements are properly sequenced with planned installation of sewage trunk lines, pumping stations, and residential connections. The subproject will benefit 41 hotels with 2,167 bedrooms, and 240 restaurants, and 12,878 residents Preah Sihanouk City City–Koh Rong Passenger Piers Improvements The proposed new pier at Victory beach (Preah Sihanouk City mainland) at Koh Touch beach (Koh Rong island) will address current problems of overcrowding at existing structurally unsound piers in Preah Sihanouk City and Koh Rong. The provision of toilets at both piers and parking at Victory beach pier will also improve environmental management and the tourist experience. The new piers will reduce the chronic congestion, and hazardous conditions for passengers and boat operators that negatively affect shorefront environment. The planned 850m-long 2m-wide concrete walkway linking the commercial area at Koh Touch beach with the island pier will improve drainage and pedestrian safety along the beach. Koh Rong Island is within a national Marine Protected Area, the subproject site is within the Multiple Use Zone where construction activities are allowed. The subproject will benefit 38 ferry boat operators, 31 associated business operators, and an expected 438,000 passengers during the first year of operation. Potential Impacts The three subprojects are classified Category B for environment pursuant to ADB’s safeguards Policy Statement (SPS) 2009. Pre-construction Phase The pre-construction phase includes the detailed design (DED) of the subprojects when, inter alia, the subproject locations, engineering, and institutional arrangements are finalized. For the 4 detailed design of Kep landfill, information on the history and regulatory status of the existing dumpsite, and immediate affected environment is required. The depth and quality of the groundwater at the existing dumpsite needs to be determined. The depth of the water table, local hydrological regimen and soil permeability need to be clarified for the design of the upgraded landfill to ensure that risks of groundwater contamination and storm water run-off impacts are understood and prevented. A draft ToR for a groundwater study at the landfill north of Kep is appended to the IEE. The separate groundwater and soils study forms part of the Environmental Compliance Audit (ECA) of the dumpsite that must be conducted. An ECA must be prepared because the dumpsite is an “existing facility” as defined by the SPS (2009). The terms of reference for the ECA are appended to the IEE (Appendix C). The final IEE, to be prepared based on the landfill’s detailed, and the updated EMP will serve as the corrective action plan