Initial Environmental Examination (Main Report – Part 4 of 7) Project Number: 54211-001 March 2021 Document Stage: Draft Viet Nam: Lotus Wind Power Project Prepared by ERM Vietnam for Lien Lap Wind Power Joint Stock Company, Phong Huy Wind Power Joint Stock Company, and Phong Nguyen Wind Power Joint Stock Company as a requirement of the Asian Development Bank. The 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 of this 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. DRAFT INITIAL ENVIRONMENTAL AND SOCIAL EXAMINATION BIODIVERSITY BASELINE Phong Nguyen Wind Farm Project Three bat species was found during the field survey including Chinese Horseshoe Bat (Rhinolophus sinicus) [IUCN LC]; Horseshoe Bat (UnidentifiedRhinolophus) [IUCN LC]; and Nepalese Whiskered Bat (Myotis muricola) [IUCN LC]; No live non-volant mammal (especially primates) was recorded during the transect surveys in both the first and second surveys. A low percentage of interviewees claimed that they saw Red-shanked Douc Langur Pygathrix nemaeus [IUCN CR; VRDB EN], Southern White-cheeked Gibbon Pygathrix nemaeus [IUCN CR; VRDB EN], Sao LaPseudoryx nghetinhensis [IUCN CR; VRDB EN]. However, given different habitat and lack of connectivityarea, these species are unlikely to occur within the Project area; and The presence of ten (10) herpetofauna species were recorded during the field survey. Almost the species are listed as Least Concern, except for Irregular Bow-fingered Gecko (Cyrtodactylus irregularis) [IUCN DD]. However, this species is considered common. Critical Habitat Assessment of GELEX Huong Phuong Wind Power Projects indicates no Critical Habitat against IFS PS6. 8.13.3.2 Phu Dien Wind Power Projects Phu Dien Wind Power Projects comprise Huong Tan and Tan Linh Wind Farm in Huong Tan and Tan Linh commune, Huong Hoa district, Quang Tri province. These projects are next to the Project. The biodiversity field surveys for Phu Dien Wind Power Projects were conducted two times, one in January 2020 and one in May 2020. The detailed result of the surveys are presented in Appendix P. The survey results are summarised below: Total of 119 plant taxa (109 species, 7 genera and 3 families) were recorded during the field survey. There are 28 species in IUCN Red List: one (01) Endangered EN (Coffea arabica L.); one (01) Vulnerable VU (Hopea odorata Roxb.); one (01) Near Threaten NT Pinus( latteri Mason) and 25 species are Least Concern (LC). Both EN and VU species were planted. None of the species is recorded in Vietnam Redbook. Additionally, two endemic specieswere recorded during this rapid survey: Orchidantha vietnamica K.Larsen and Semecarpus anacardiopsis Evrard & Tardieu. For birds, a total of 21 (belong to 12 Families of 5 Orders) species were recorded in January 2020. The most common species in the project area reported in this survey was the Cattle Egret (Bubulcus ibis) [IUCN LC]. The species that had flights in RSZ (35-150m) including Warber [IUCN LC], Sooty-headed Bulbul [IUCN LC], Mountain Hawk Eagle [IUCN LC], Large-billed Crow [IUCN LC], Crested Serpent Eagle [IUCN LC], Crested Goshawk [IUCN LC], Cattle Eagle [IUCN LC], Black-crested Bulbul [IUCN LC]. In May 2020, there were 37 bird species were found during the field survey. Furthermore, 13 bird species were observed to fly in RSZ (35-150m). All species recorded in two surveys have not been listed as species of conservation significance nationally or internationally. No endemic bird species were found. Phu Dien Wind Power Projects are unlikely to contain the habitat supporting globally significant concentrations of migratory species. The vocalizations of four (04) bat taxa were recorded that consist of Scotomanes sp., Tylonycteris sp., Pipistrellus sp., Hipposideros sp. Two (02) mammalian records were made. They were the Cambodian Stripped Squirrel (Tamiops rodolphii) [IUCN LC] and the Pallas's Squirrel (Callosciurus erythraeus) [IUCN LC]. No gibbon vocalization and primate was detected. A low percentage of interviewees claimed that they saw Red-shanked Douc Langur Pygathrix( nemaeus) [IUCN CR; VRDB EN], Sao La Pseudoryx nghetinhensis [IUCN CR; VRDB EN]. There we five respondersmed clai that saw a pheasant but did not indicate that species is Vietnam PheasantsLophura ( edwardsi) [IUCN CR]. However, given Phu Dien Wind Power Projects area highly modified with numerous human activities, it is unlikely that these species occur there. www.erm.com Version: 4.0 5 March 2021 Page 214 Project No.: 0552758 Client: Phong Nguyen Wind Farm JSC DRAFT INITIAL ENVIRONMENTAL AND SOCIAL EXAMINATION BIODIVERSITY BASELINE Phong Nguyen Wind Farm Project Ten (10) species of amphibian and one (01) species of reptile were found. Almost recorded species are listed Least Concern in IUCN Red List except for Irregular Bow-fingered Gecko (Cyrtodactylus irregularis) [IUCN DD]. This species was found in GELEX Huong Phung Wind Power Projects. Critical Habitat Assessment of Phu Dien Wind Power Projects indicates no Critical Habitat against IFS PS6. 8.14 Critical Habitat Assessment 8.14.1 Critical Habitat Screening According ADB SPS, Critical Habitat can be defined below: “A subset of both natural and modified habitat that deserves particular attention. Critical habitat includes areas with high biodiversity value, including habitat required for the survival of critically endangered or endangered species; areas having special significance for endemic or restricted-range species; sites that are critical for the survival of migratory species; areas supporting globally significant concentrations or numbers of individuals of congregatory species; areas with unique assemblages of species or that are associated with key evolutionary processes or provide key ecosystem services; and areas having biodiversity of significant social, economic, or cultural importance to local communities.” A Critical Habitat assessment was undertaken in accordance with the provisions of the IFC Performance Standards. Critical habitats are areas with high biodiversity value, including Habitat of significant importance to Critically Endangered and/or Endangered species; Habitat of significant importance to endemic and/or restricted-range species; Habitat supporting globally significant concentrations of migratory species and/or congregatory species; Highly threatened and/or unique ecosystems; and/or Areas associated with key evolutionary processes. Critical Habitat may not be limited to pristine or highly biodiverse areas, but rather may include both modified habitat and natural habitats across the broader landscape that supports the biodiversity values that trigger the Critical Habitat criterion. Critical Habitats can therefore be a subset of both modified habitat and natural habitat. Assessment for Critical Habitat is undertaken as a screening process against the criteria defined within ADB SPS 2009 and IFC PS6 Guidance Note. This involved analysis of desk-based data collection, habitat mapping and incorporation of field survey results. Critical Habitat criteria are defined in PS6 Guidance Note 6 (GN6), Paragraphs GN69 to 97. Table 8.26 provides detail of the qualifying requirements for Criteria 1 to 3 (i.e. thresholds), while details of the likely qualifying interests for Criterion 4 and 5 will be defined based on research and expert opinion. The criteria listed have been used to complete this assessment. The five criteria are ‘triggers’ in that if an area of habitat meets any one of the criteria, it will be considered Critical Habitat irrespective of failing to meet any other criterion. This approach is generally more cautious but is used more widely in conservation. Critical Habitat criteria therefore have two distinctive characteristics. First, components of biodiversity are essentially assigned to only two levels of conservation significance, those that trigger Critical Habitat and those that do not (Thresholds considerations being secondary to this primary Critical Habitat determination). Second, each criterion is applied separately and not in combination, meaning that the scores are not cumulative. www.erm.com Version: 4.0 5 March 2021 Page 215 Project No.: 0552758 Client: Phong Nguyen Wind Farm JSC DRAFT INITIAL ENVIRONMENTAL AND SOCIAL EXAMINATION BIODIVERSITY BASELINE Phong Nguyen Wind Farm Project Table 8.26 Critical Habitat Criteria (IFC PS6 Guidance Note 2012) Criteria Thresholds Criterion 1: Critically (a) Areas that support globally-important concentrations of an IUCN Red- Endangered (CR) / Endangered listed EN or CR species (0.5% of the global population AND 5 reproductive units of a CR or EN species); (EN) species: (b) Areas that support globally-important concentrations of an IUCN Red- listed VU species, the loss of which would result in the change of the IUCN Red List status to EN or CR and meet the thresholds in (a). (c) As appropriate, areas containing nationally/regionally-important concentrations of an IUCN Red-listed EN or CR species. Criterion 2: Habitat of significant (a) Areas that regularly hold ≥10% of the global population size AND ≥10 importance