Initial Environmental Examination July 2012 LAO: Greater Mekong Subregion Corridor Towns Development Project Prepared by the Ministry of Natural Resources and Environment and Savannakhet Provincial Department of Natural Resources for the Asian Development Bank. CURRENCY EQUIVALENTS (as of 1 August 2012) Currency Unit – kip (KN) KN1.00 = $0.00012 $1.00 = KN8,013 ABBREVIATIONS DBTZA – Dansavanh Border Trade Zone Authority DED – detailed engineering design DoF – Department of Forestry DPRA – Development Project Responsible Agency DPWT – District Public Works and Transport Office DNREO – District Natural Resource and Environment Office EA – environmental assessment EIA – environment impact assessment ECA – Environmental Compliance Audit ECC – Environmental Compliance Certificate ECO – Environmental Control Officer EMP – environment monitoring plan EMMU – Environment Management and Monitoring Unit ESD – Environment and Social Division ESIA – Environment and Social Impact Assessment ESO – environmental site officer EA – executing agency EWEC – East-West Economic Corridor FDI – foreign direct investment FGD – focus group discussion FS – Forest Strategy FYSEDP – Five Year Socio Economic Development Plan GDP – gross domestic product GMS – Greater Mekong Subregion GoL – Government of Lao PDR IA – implementing agency IEE – initial environmental examination IUCN – International Union for Conservation of Nature IWRM – Integrated Water Resource Management Lao PDR – Lao People’s Democratic Republic LFA – Land and Forest Allocation LWU – Lao Women Union MAF – Ministry of Agriculture and Forestry MAF – Ministry of Agriculture and Forestry MIC – Ministry of Information and Culture MIH – Ministry of Industry and Handicraft MoU – Memorandum of Understanding MoF – Ministry of Financial MONRE – Ministry of Natural Resources and Environment MPCTC – Ministry of Post, Construction, Transport and Communication MPWT – Ministry of Public Works and Transport MPI – Ministry of Planning and Investment MRF – materials recovery facilities MRC – Mekong River Commission NAPA – National Adaptation Plan of Action NBSAP – National Biodiversity Strategy and Action Plan NGOs – nongovernment organization NLMA – National Land Management Authority NPA – national protected area NSEDP – National Socio Economic Development Plan NTA – National Tourism Authority NTFP – non-timber forest product NUSS – National Urban Sector Strategic O&M – operation and maintenance PAFO – Provincial Agriculture and Forestry Office PES – project environment specialist PEI – Poverty Environment Initiative PIC – Provincial Information and Cultural Office PIU – project implementation unit PMU – project management unit PCU – project coordination unit PNREO – Provincial Natural Resource and Environment Office PLMO – Provincial Land Management Office PPI – Provincial Planning and Investment Office PPH – Provincial Public Health Office PPA – Provincial Protected Area PPP – public private partnership PTO – Provincial Tourism Office PWREO – Provincial Water Resources and Environment Office RBC – River Basin Committee REA – rapid environment assessment – Reducing Emissions from Deforestation and Forest REDD Degradation TSS – total suspended solids SEC – Socio-Economic and Culture UDAA – Urban Development and Administration Authority UXO – unexploded ordnance WREA – Water Resources and Environment Agency WEIGHTS AND MEASURES km – kilometer kg – kilogram ha – hectare Mm – millimeter NOTE 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 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. I. EXECUTIVE SUMMARY 1. The towns of Kaysone Phomvihane, Phine, and Dansavanh are the three subproject locations for the Corridor Towns Development Project (CTDP) in Lao People’s Democratic Republic (Lao PDR). Lao PDR together with Cambodia and Viet Nam form the three target countries of the parent Greater Mekong Subregion (GMS) Corridor Towns Development Project CTDP (ADB TA 7644-REG). Through infrastructure developments in the three towns the goal of the CTDP is to develop the existing East West Economic Corridor (EWEC) in Lao PDR from a transportation corridor into an economic corridor as part of the overall economic development of the Greater Mekong Sub-region. 2. The initial environmental examination (IEE) of the CTDP subprojects in Lao PDR presented herein consolidates the initial three IEEs that were prepared for each subproject town. The consolidated IEE has been re-formatted and edited pursuant to the requirements of Asian Development Bank’s Safeguards Policy Statement (2009). A. Project Summary 3. The CTDP in Lao PDR is an ADB Category B project at the feasibility design phase, and is defined by the following subprojects and infrastructure component developments: Subproject Subproject component 1) Upgraded solid waste management and sanitary landfill Decommissioning existing landfill Modern landfill technology including leachate collection and treatment system New compactor trucks 2) Materials recovery facility Higher volume with modern. efficient technology Kaysone Phomvihane, 3) Wastewater treatment plant and improved drainage Three, aerobic pond treatment plants Stormwater drainage canals Interceptor pipelines 4) Mekong riverbank protection Modern slope protection materials and techniques 5) Improved urban roads and drainage Road widening, lateral drainage, lighting, and signage 6) Improved urban roads and drainage Phine Road widening, lateral drainage, lighting, and signage 7) Improved urban roads and drainage Dansavanh Road widening, lateral drainage, lighting, and signage ii 4. The proposed new sanitary landfill in Kaysone Phomvihane will receive solid waste from the municipality. It will likely contain a liner of clay depending on soil permeability and the overall sensitivity of groundwater. An adjacent leachate treatment facility is planned, along with provision of two new compactor trucks. The quality of treated leachate and the receiving environment for disposal have not been finalized. A modern, materials recovery facility (MRF) will be constructed adjacent to the new sanitary landfill. The MRF will be contained in a specially designed building that provides central solid waste depot sites. 5. A major component of the development of the new sanitary landfill is the decommissioning of the existing dumpsite that is adjacent to the planned site for the new landfill. A separate environmental compliance audit (ECA) will be conducted by the PPTA consultant to determine the present and likely future impacts of the old dumpsite on the environment. 6. The proposed three new wastewater treatment plants (WWTPs) in Kaysone Phomvihane will treat urban wastewater aerobically in ponds before the treated effluent is discharged to existing drainage system and ultimately to the Mekong river. Raw wastewater will be conveyed to the WWTPs in upgraded combined waste-stormwater drainages. Aerobic pond sludge will either be disposed in a landfill or to agricultural lands. The quality of the treated effluent and waste sludge at disposal has not been finalized. 7. The bank of the Mekong river adjacent to Kaysone Phomvihane will be fortified with modern slope stabilization materials and procedures. The top of the riverbank will be widened and developed into public and commercial space for use by the Kaysone Phomvihane community. 8. The upgrades to the urban roads and drainage in Kaysone Phomvihane, Phine and Dansavanh will occur adjacent to, and along sections of the national highway that passes through the towns. The road upgrades will consist of road widening, installation of lights, trees, and upgraded lateral drainage. B. Potential Impacts 9. In general the examination of the pre-construction, construction, and operational phases of the subprojects, which included input from community stakeholder meetings, indicates that the potential environmental impacts of the subprojects in Lao PDR will be short-term civil construction-related which can be mitigated. The construction impacts of elevated dust, noise, traffic disruptions, erosion and sedimentation, liquid and solid waste, erosion, and public and worker safety can be mitigated and managed effectively with good construction management practices. 10. Potential long-term environmental impacts of the infrastructure developments concern the operation of the three WWTPs and sanitary landfill. The potential impacts of the WWTPs arise from uncertainties with the sensitivity and assimilative capacity of receiving drainage systems, and ultimately the Mekong river to the treated effluent from the aerobic treatment ponds. Similarly, the sensitivity of groundwater, and downstream surface water to the operation of the new sanitary landfill needs to be clarified at detailed design stage. The expected quality and disposal procedures for planned treated leachate from landfill also needs to be clarified at detailed design stage. The final design of the sanitary landfill depends in part on the results of the ECA of the existing dumpsite. iii 11. Potential