Updated Initial Environmental Examination Project Number: 46293-003 Loan Number: 3156-LAO June 2020 Lao People’s Democratic Republic: Greater Mekong Sub-region Tourism Infrastructure for Inclusive Growth Project Oudomxay Province Prepared by the Ministry of Information, Culture and Tourism for the Asian Development Bank. This updated 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. CURRENCY EQUIVALENTS (as of 26 May 2020) Currency Unit – kip K K1.00 = $0.000111 $1.00 = K 8,988 WEIGHTS AND MEASURES oC – degree Celsius km – kilometer m – meter kg – kilogram ha hectare NOTE: In this report, "$" refers to US dollars unless otherwise stated. ABBREVIATIONS CEMP - Construction Environmental Management Plan DOH - Department of Heritage DAF - Department of Agriculture, Forestry and Fisheries EA - Environmental assessment DONRE - Department of Natural Resources and Environment DDSC - Detailed Design and Supervising Consultant DICT - Department Information and Culture and Tourism EIA - Environment Impact Assessment ECC - Environmental Compliance Certificate ECO - Environmental Control Officer EMP - Environment Management Plan ESIA - Environment and Social Impact Assessment EA - Executing Agency GMS - Greater Mekong Sub-region IA - Implementing Agency IEE - Initial Environmental Examination IUCN - International Union for Conservation of Nature Lao PDR - Lao People’s Democratic Republic LWU - Lao Women’s Union MAF - Ministry of Agriculture, Forestry and Fisheries MICT - Ministry of Information, Culture and Tourism MOF - Ministry of Finance MONRE - Ministry of Natural Resources and Environment MPWT - Ministry of Public Works and Transport MRC - Mekong River Commission NBSAP - National Biodiversity Strategy and Action Plan NPA - National Protected Area O&M - Operation and Maintenance PIU - Project Implementation Unit PCU - Project Coordination Unit PPP - Public-Private Partnership PPTA Project Preparatory Technical Assistance (PPTA) REA - Rapid Environment Assessment TIIGP Tourism Infrastructure for Inclusive Growth Project TSS - Total Suspended Solids UXO - Unexploded Ordnance WREA - Water Resources and Environment Agency 2 TABLE OF CONTENTS I. EXECUTIVE SUMMARY ............................................................................................... 7 A. The Project Introduction and Purpose ....................................................................... 7 B. The Scope and Objectives of this IEE........................................................................ 7 C. Project Summary ....................................................................................................... 7 D. Potential Impacts ....................................................................................................... 8 E. Conclusions ............................................................................................................. 10 II. INTRODUCTION ......................................................................................................... 11 A. Project Background ................................................................................................. 11 B. The Scope and Objectives of this IEE...................................................................... 12 C. Environmental Categorization .................................................................................. 13 D. Existing Impact Footprints ....................................................................................... 13 E. Structure of this IEE Report ..................................................................................... 13 III. POLICY, LEGAL, AND REGULATORY FRAMEWORK ............................................. 14 A. National Environmental Laws, Strategies, and Policies ........................................... 14 1 Laws ..................................................................................................................... 15 2 Decrees Strategies, Plans, Policy .......................................................................... 15 3 International Agreements ...................................................................................... 15 4 Environmental Standards & Criteria ...................................................................... 16 B. National Forest Management Types ........................................................................ 16 1. Protection Forests ................................................................................................. 16 2. Conservation or Reserved Forests ........................................................................ 17 3. Production Forests ................................................................................................ 17 4. Regeneration Forest ............................................................................................. 17 5. Degraded Forests ................................................................................................. 17 C. National Environmental Assessment Procedures .................................................... 17 D. ADB Safeguard Policy ............................................................................................. 19 IV. DESCRIPTION OF SUBPROJECTS ........................................................................... 19 A. Justification and Rationale ....................................................................................... 19 B. Subproject in Oudomxay Province ........................................................................... 19 3 V. DESCRIPTION OF ENVIRONMENT ........................................................................... 25 A. Project’s Area of Influence ....................................................................................... 25 B. Geography and Topography .................................................................................... 27 C. Meteorology and Climate ......................................................................................... 28 D. Vegetation type ....................................................................................................... 29 E. Hydrology, Water Resources and Quality ................................................................ 29 F. Air Quality and Noise ............................................................................................... 30 G. Climate Change ....................................................................................................... 30 H. Natural Disasters ..................................................................................................... 31 I. Ecological Resources .............................................................................................. 31 J. Physical Cultural Resources .................................................................................... 32 K. Socio-economic Condition ....................................................................................... 32 VI. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES ......... 33 A. Positive Impact and Environmental Benefits ................................................................ 33 B. Impacts Associated with Project Location and considerations during design stage ..... 33 C. Mitigation Measures and Actions during Pre-construction ........................................... 35 1. UXO Clearance ........................................................................................................ 35 2. River Sand Usage .................................................................................................... 35 3. River Gravel Usage .................................................................................................. 35 4. Borrow areas............................................................................................................ 35 5. Spoil Disposal .......................................................................................................... 35 6. Construction camps ................................................................................................. 35 7. Preparation of CEMPs ............................................................................................. 36 8. Capacity Building Training........................................................................................ 36 D. Environmental Impacts and Mitigation Measures during Construction ......................... 36 1. Construction-related common impacts ..................................................................... 36 2. Specific Impacts and Mitigation Measures for the Subproject ................................... 37 E. Environmental Impacts and Mitigation Measures during Operation ............................. 40 1. Roads ................................................................................................................... 40 2. Tourist reception area and car park ...................................................................... 40 4 3. Inside the cave .....................................................................................................