Initial Environmental Examination

Project Number: 41689 June 2011

Lao People's Democratic Republic: Nabong 500kV

Substation and Transmission Facility Project

Prepared by Electricite du Laos for the Asian Development Bank.

CURRENCY EQUIVALENTS (as of 20 May 2011)

Currency unit - Kip (KN) KN1.00 - $0.000125 $1.00 - KN8,000.00

ABBREVIATIONS

ADB – Asian Development Bank AIDS – Acquired immune deficiency syndrome ComRel – Community Relations Officer DOE – Department of Electricity DOF – Department of Forestry DPA – District Protected Area EA – Executing Agency ECC – Environmental Compliance Certificate EDL – Electricite du Laos EGAT – Electricity Generating Authority of Thailand EIA – Environmental Impact Assessment EMF – Electric and magnetic field EMMU – Environmental Management and Monitoring Unit EMoP – Environmental Monitoring Plan EMP – Environmental management plan EO – Environmental Office FIFD – Forest Inventory and Planning GOL – Government of Lao PDR HH – Household HIV – Human immune deficiency IA – Implementing Agency ICB – International competitive bidding IEE – Initial Environmental Examination IFC – International Finance Corporation Lao PDR – Lao People’s Democratic Republic MAF – Ministry of Agriculture and Forestry MD – Mixed deciduous forest MEM – Ministry of Energy and Mines MOU – Memorandum of Understanding NAFRI – National Agriculture and Forestry Research Institute NBCA – National Biodiversity Conservation Area NN2PC – Nam Ngum 2 Power Company Limited NTFP – Non-timber forest product PCF – Provincial Conservation Forest PEMC – Project Environment Management Committee PIU – Project Implementation Unit PMO – Project Management Office PPE – Personnel protective equipment PWREO – Provincial Water Resources and Environment Office RAP – Resettlement Action Plan ROW – Right-of-way SPS – Safeguard Policy Statement (2009)

TL Transmission line UN United Nations WREA Water Resources and Environment Administration

WEIGHTS AND MEASURES

oC – Degree Centigrade ha – Hectare Hz – Hertz km – Kilometer kV – Kilovolt m – Meter masl – Meters above sea level MW – Megawatt sqm Square meter

NOTE

In this report, "$" refers to US dollars. This resettlement and indigenous peoples due diligence report 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. 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.

TABLE OF CONTENTS

Executive Summary ................................................................................................................... 1

I. INTRODUCTION ................................................................................................................ 6

1. Purpose of the Report ..................................................................................................... 6

2. Structure of the Report .................................................................................................... 7

3. Approach to Preparation of IEE Report............................................................................ 8

II. Policy, Legal, and Administrative Framework ...................................................................... 9

A. ADB’s Environmental Policies ........................................................................................... 9

B. Lao PDR Environmental Policies ....................................................................................... 9

C. International Environmental Conventions .........................................................................13

D. Project Environmental Category and Requirements .........................................................14

III. Description of the Project ...............................................................................................15

A. Component 1: Expansion of 230 kV to 500 Kv Nabong Substation .................................15

B. Component 2: Acquisition of 500 kV Transmission Line to Nabong substation ...............16

IV. Description of the Environment .......................................................................................18

A. Physical Resources ...........................................................................................................18

1. Topography.................................................................................................................18

2. Geology ......................................................................................................................18

3. Water Resources ........................................................................................................19

4. Climate .......................................................................................................................21

C. Biological Resources ..................................................................................................22

D. Socio-Economic Conditions ........................................................................................24

V. Anticipated Environmental Impacts and Mitigation Measures ...............................................28

A. Potential Impacts During the Design and Pre-Construction Phase .................................28

1. Planning for Changes in Topography ..........................................................................29

2. Planning for Changes in Hydrology and Flooding in Affected Population ....................29

3. Planning for the Construction Camp ...........................................................................30

4. Procurement of Equipment, Materials and Goods .......................................................30

B. Potential Impacts During the Construction Phase .............................................................31

1. Erosion, Sedimentation, and Flooding Impacts ...........................................................31

2. Generation of Construction Wastes ............................................................................31

3. Impact on Air Quality ...................................................................................................32

4. Impact on Noise ..........................................................................................................32

5. Movement of Construction Vehicles Along Access Roads ..........................................33

6. Planting of Vegetation .................................................................................................33

7. Occupational Health and Safety ..................................................................................33

8. Community Health and Safety ....................................................................................34

C. Impacts During the Operational Phase .............................................................................34

1. Occupational Health and Safety ..................................................................................34

2. Community Health and Safety ....................................................................................35

3. Management of Hazardous Waste ..............................................................................36

4. Emergency Preparedness at Substation .....................................................................36

5. Management and Control of Vegetation at Transmission Line ....................................37

V. Analysis of Alternatives ......................................................................................................38

A. Considerations for Vegetation and Wildlife Preservation ..................................................38

B. Avoiding Settlements .......................................................................................................39

C. Avoiding Cultural and Heritage Sites ................................................................................39

D. Drainage Patterns ............................................................................................................39

E. Other Utilities and Traffic ..................................................................................................39

VI. Information Disclosure, Consultation, and Participation ..................................................41

VII. Grievance Redress Mechanism ......................................................................................43

A. Grievance Focal Points, Reporting and Monitoring ...........................................................43

B. Dispute Resolution Process .............................................................................................43

C. Disclosure of Grievance Resolution Process ....................................................................44

VIII. Environmental Management Plan ...................................................................................46

A. Mitigation Plan ................................................................................................................46

B. Monitoring Plan ..............................................................................................................54

C. Institutional Arrangements and Responsibilities ..........................................................56

1. Organizational Structure within EDL ..............................................................................56

2. Project Environmental Management Committee (PEMC) ..............................................57

3. Institutional Capacity Building .......................................................................................60

D. EMP Budget................................................................................................................61

IX. Conclusion and Recommendation ..................................................................................63

BIBLIOGRAPHY .......................................................................................................................65

Appendices ...............................................................................................................................67

LIST OF TABLES Table 1: Process of Forest Land Conversion and Permitting Institutions ..................................12 Table 2: Summary of Rivers, Streams and Irrigation Canal along Transmission Line ROW .....20 Table 3: Climate Data in Vientiane Capital, 2006 .....................................................................21 Table 4: Land Use and Forest Cover at Nabong Substation.....................................................22 Table 5. Land Use and Forest Cover along the Transmission Line ..........................................22 Table 6: Number of Households in Affected Villages ................................................................24 Table 7: Main Sources of Income in Affected Villages ..............................................................25 Table 8: Safety Clearances to Live Conductors of 500 kV Transmission Line ..........................39 Table 9: Environmental Management Plan ...............................................................................46 Table 10: Environmental Monitoring Plan .................................................................................54 Table 11: Institutional Set-up and Responsibilities for Environmental and Social Tasks ...........59 Table 12. Training and Awareness Programs...........................................................................60 Table 13. Estimated Budget for Environmental Management and Monitoring ..........................61

LIST OF FIGURES

Figure 1. Project Location ......................................................................................................... 2 Figure 2. Overview of Substation and Transmission Line .........................................................17 Figure 3. Topographic map of the substation site .....................................................................19 Figure 4. Vicinity map showing communities surrounding the substation site ...........................20 Figure 5. Land Use and Forest Types within Project Area ........................................................23 Figure 6. Grievance Redress Process ......................................................................................45 Figure 7. Organization Structure on Environmental Management ............................................57 Figure 8. Organizational Structure of the Project Environmental Management Committee (PEMC) .....................................................................................................................................58

APPENDICES Appendix 1: Environmental Compliance Certificate (ECC) for IEE ............................................67 Appendix 2: Environmental Categorization Form ......................................................................72 Appendix 3: Rapid Environmental Assessment Checklist ..........................................................73 Appendix 4: Acceptance of Completed Property Compensation of the project issued by Vientiane Capital on 09 March 2011 .........................................................................................76 Appendix 5: List of Consultation Meetings .................................................................................78 Appendix 6: Minutes of Public Consultation Meeting .................................................................79 Appendix 7: Environmental Compliance Certificate (ECC) for RAP ...........................................90 Appendix 8: Due Diligence Report on existing 230kV Nabong Substation and 500kV Transmission Line .....................................................................................................................94 Appendix 9. Photographs of the site ....................................................................................... 103

PHOTOGRAPH LOG Photo 1. Transmission line crossing at Road 13. .................................................................... 103 Photo 2: Control panel at substation ....................................................................................... 103 Photo 3: Stockyard at existing substation and proposed site of 500kV switchyard in background ............................................................................................................................................... 104 Photo 4: Site of the proposed 500kV switchyard .................................................................... 104 Photo 5: The existing substation facilities ............................................................................... 105 Photo 6: The existing construction camp ................................................................................. 106 Photo 7: Water supply facilities at the construction camp. ....................................................... 106 Photo 8: The existing operator house. ..................................................................................... 107 Photo 9: Site of the proposed expansion of the substation. Note the vegetation and excavated soil to be removed to level the project site. .............................................................................. 107

DRAFT, not for circulation

EXECUTIVE SUMMARY 1. The Government of Lao People’s Democratic Republic (Lao PDR) requested assistance from the Asian Development Bank (ADB) for the development of the Nabong–Udon Thani Power Transmission Project for possible ADB financing. The project aims to deliver power from hydropower sources in Lao PDR through a transmission line and substation system in Nabong Village towards the Udon Thani border in Thailand. 2. In 2010, the Nam Ngum 2 Power Company Limited (NN2PC) constructed and developed a 230 kV substation in Nabong Village and a 500 kV transmission line to evacuate power from the Nam Ngum 2 hydropower project to Thailand. The Electricite du Laos (EDL) and the Electricity Generating Authority of Thailand (EGAT) acted as operators of the project. 3. The Government of Lao PDR, through EDL, plans to upgrade the operating voltage of the 230kV substation to a 500kV substation within the existing 42 ha site in Nabong Village, Pakngum District and to acquire the existing 500 kV transmission line from NN2PC. The upgraded substation and transmission line will be used as a common transmission facility of the Nam Ngum 2, Nam Ngum 3, Nam Theun 1, and Nam Ngiep 1 hydropower projects. 4. In November 2007, the substation and the transmission line project were categorized by ADB Compliance Department as an Environmental Category B project which requires an Initial Environmental Examination (IEE). An IEE was prepared for the 500 kV transmission line and substation project in 2007 by EDL. Following a review of the IEE, the Water Resources and Environment Administration (WREA) of Lao PDR issued the Environmental Compliance Certificate (ECC) for the project on 16 October 2007. 5. In February 2009, another IEE was prepared for the project by Fichtner as part of the Technical Assistance by ADB. The IEE covers an assessment of the technical, economic, and financial viability, including due diligence on environmental and social safeguards. Due diligence on the Nam Ngiep 1 and Nam Ngum 3 were included in the report to determine compliance with ADB’s safeguard policies since these projects were proposed to be financed by ADB and are associated facilities of the 500 kV power transmission line. 6. Since the Fichtner report was developed based on the 2002 ADB Environmental Policy, this updated IEE is prepared in compliance with ADB’s Safeguard Policy Statement (2009). The updated IEE covers the 230/500kV substation and the Nabong-Udon Thani 500 kV transmission line which will be acquired by EDL from the NN2PC. 7. The environmental impact assessment was carried out with the objective of (i) establishing current environmental conditions; (ii) identifying key environmental issues; (iii) assessing magnitude of impacts and to provide mitigating measures; (iv) integrating the environmental issues in the project planning and design stage and (v) developing an updated environmental management plan for implementation, monitoring and reporting of the environmental mitigation and enhancement measures. Due diligence on the existing 230 kV substation and 500 kV transmission line was also conducted as part of the environmental safeguards for this project.

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8. The project includes the following components: (a) expansion of the existing 230 kV substation to a 500 kV substation within the same site in Nabong Village and the (b) 27-km 500 kV transmission line from Nabong substation up to the Thailand border at Mekong River (Figure 1).

Figure 1. Project Location

Source: Electricite du Laos

9. The project area consists of the substation with an area of about 42ha in Nabong Village, Pakngum District and about 27 km x 60 m right-of-way (ROW) for the 500 kV transmission line from Nabong substation to Mekong River. 10. A 230 kV capacity substation is already operational within the 42 ha land in Nabong. The expansion of the substation to 500kV capacity will require the clearing of approximately 15,000 sqm of land within the 42 ha substation site. The expansion project will involve the construction and installation of facilities for the switchyard and control room on the land adjacent to the existing 230 kV substation. Additional equipment such as power transformer, circuit breakers, disconnecting switches, current transformers, and voltage transformers will be acquired for installation at the 500 kV substation. It is planned that construction of the expansion of the substation will start in 2013 and will be completed by 2016. 11. The alignment of the existing 27-km 500 kV transmission line to be acquired by EDL crosses an existing National Road No. 13 South at Kilometer 34-35 to the west through Thinthaen Village and then crosses the Hatxayfong Road. The transmission alignment further

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crosses the Mekong River where it meets the EGAT transmission line in Udon-Thani at the Thailand border. 12. The transmission line has 58 steel towers, composed of 4 tension towers and 54 suspension towers. The standard span between each tower ranges from 350 – 450 m, depending on the terrain conditions along the transmission alignment. 13. Under supervision of the Department of Electricity (DOE), the project proponent is EDL, a state owned utility company responsible for transmission and distribution of electricity in Lao PDR. 14. Due Diligence. The due diligence on the 230kV substation and the Nabong-Udon Thani 500 kV transmission line project of NN2PC to be acquired by EDL found that mitigation measures during the construction of the existing transmission line and substation have been addressed. 15. Public Consultation. Consultations with affected communities along the alignment of the transmission line and substation have been carried out by EDL team in May/June 2007 through interviews and meetings with villagers and village authorities. On 22 June 2007, another project consultation meeting was organized in Vientiane chaired by Mr. Soukanh Phongsavath, Head of Ministry of Energy and Mines to present the project. The meeting was also attended by representatives from the WREA, concerned village authorities, and affected villagers. Major concerns raised by the stakeholders were about fair compensation for affected households and land, scheduling of the construction of the project before the rice production period to minimize impacts to rice plantations, and collaboration with local authorities in relation to further consultations and agreements about the compensation rate. 16. Summary of Impacts and Mitigation Measures. The evaluation of the pre-construction, construction, and operational phases of the project components which included input from EDL’s IEE in 2007 and Fichtner IEE in 2009, results of public consultation meetings with the affected community, and site assessment indicates that the Nabong substation and the 500 kV transmission line project will generate minor adverse impacts to the environment. 17. The upgrading of the substation capacity will improve the reliability of the power supply in Lao PDR and to Thailand. The project is also expected to reduce the reliance on fossil fuel-based power sources. The utilization of electricity from hydropower sources in Lao PDR will help lower carbon emissions than the use of fossil fuel based electricity generation. 18. During the pre-construction and design phase of the expansion of the substation, the potential impacts to be addressed relate to:

Pre-identification of disposal site for cut soil, bushes, and other vegetation

Improvement of the worker camps and facilities to prevent impacts on workers’ health, hygiene, and sanitation

Implementation of environmentally sound procurement policies when acquiring equipment, materials, and other goods for the project.

19. The short-term construction-related environmental impacts such as increased ground level concentration of dust, noise, soil erosion and sedimentation, and public and worker safety can be mitigated and managed effectively with well-described construction management directives and guidelines. The mitigating measures during construction of the substation project include:

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Provision of silt traps/sedimentation pits within the project site to avoid runoff of sediments into the adjacent areas

Avoidance/minimization of dust emission through water sprinkling in areas prone to dust generation

Specification for the handling and transporting of materials along village roads to avoid excessive dust generation, noise, traffic-related accidents, and damage to existing access roads.

Implementation of a construction health and safety management plan, including guidelines for good housekeeping while operating at workers camps

Proper disposal of construction debris

Tree planting to compensate for loss of vegetation

Planning for proper and environmentally acceptable decommissioning of work sites through environmental enhancement techniques, re-vegetation, fencing, among others

Hiring of local villagers during the construction of the substation expansion project

Implementation of community health and safety plan. 20. During the operational phase, maintenance of facilities, implementation of the environmental management plan, occupational health and safety plan, regular training and community awareness, and emergency response and preparedness programs are recommended to address impacts of the project. 21. An updated environmental management plan (EMP) has been prepared for the project that considers the impacts of the expansion of the substation and the operation of the transmission line. The EMP provides an impacts mitigation plan, an environmental monitoring plan, and specifies the institutional responsibilities and capacity development needs for implementing the EMP. 22. Institutional Plan. The EDL has an Environmental Office (EO) under the Technical Department which is composed of 26 staff. A Project Implementation Unit (PIU) will be established to coordinate activities of the EO and the Transmission Department of EDL. The PIU will be responsible for supervising the implementation of environmental mitigation, social development programs including compensation, and monitoring measures during the construction and operation of the project. 23. The PIU will work in close coordination with the other departments of EDL such as the Technical Department and Transmission Department, as well as the project contractor to oversee the implementation of the EMP. The PIU will also coordinate with the community and act as bridge of the community to the company. 24. An Institutional Strengthening Program to increase capacity of the Implementing Agency (EDL) to undertake environmental management and monitoring was recommended. A training program addressing work safety, EIA preparation and review, EMP implementation, inspection and corrective action, environmental standard operating procedures, proper handling and disposal of spoils, protection of local vegetation and water resources, and avoiding impacts on local population from noise and dust-generating activities were proposed. 25. Grievance Redress Mechanism. A Grievance Redress Mechanism was established to receive and facilitate resolution of affected people’s concerns, complaints, and grievances about the project, particularly on compensation policies. The grievance resolution of the project was established based on the provisions in Article 13 of the Decree on Compensation and

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Resettlement of People Affected by Development Projects and the Technical Guidelines on Compensation and Resettlement1. The Guidelines for Compensation of the proposed project was issued by Vientiane Capital on 26 September 2007. It outlines the agreed upon compensation costs for land, property, trees, and other structures affected by the project based on consultations that were conducted with the affected villages. 26. Compensation for the affected families has been made and that safeguards are in compliance with the policies of ADB and the Government of Lao. Vientiane Capital issued its acceptance of the property compensation of the impacted people by the project on 09 March 2011. 27. During the implementation phase, there are still various issues that might be encountered by the affected people. In order to resolve these concerns effectively and timely, a Grievance Redress Mechanism will be maintained and established. 28. The PIU shall conduct follow-up and report on a monthly basis all complaints, disputes or questions received about the project. The complaints resolution process will be disseminated through an agreement signed by EDL and the complainant and witnessed by village and district representatives.

29. For construction related complaints, the contractor will be asked to participate in the complaint resolution process. The EO likewise conducts follow-up and monitoring of the resolution of the complaint. 30. Conclusion. The proposed expansion of the substation project will not have any considerable adverse impacts to the environment since the project activities will be limited within the 42 ha of land which is already acquired by EDL. The site is not an ecologically sensitive area and there are no settlements within the substation site. The impacts of the project are site-specific, reversible and are confined within the property. The anticipated adverse environmental impacts are manageable and can be mitigated through proper design and consideration of the proposed mitigation measures. The major environmental issues such as land and vegetation clearing, soil runoff, dust, noise, and health and sanitation impacts are expected during the construction period, however, these can be mitigated through strict implementation of an environmental management plan and the construction health and safety management plan. 31. Based on the analysis conducted in this assessment it is concluded that overall the project will result in significant positive socio-economic benefits, and those potential negative environmental impacts that have been identified are small-scale and localized, and can be minimized adequately through good design and the appropriate application of mitigation measures. It is therefore recommended that the project be supported by ADB, subject to the implementation of the commitments contained in the EMP and allocation of appropriate technical, financial and human resources by implementing agencies to ensure these commitments are effectively and expediently implemented.

1 Resettlement Action Plan for the Nabong-Thinthaen 500 kV Transmission Line and Substation

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I. INTRODUCTION 32. Lao PDR has significant hydropower potential which is estimated at about 18,000 megawatts (MW)2. In the next 15 years, Lao PDR expects to develop 11 projects with a total capacity of 4,000 MW. Taking advantage of the rapidly growing demand for power within Lao PDR and the neighboring countries such as Thailand and Vietnam, the development of more efficient and environmentally-friendly power sources from the country’s hydroelectric power resources as compared to thermal power generation is seen as a venue to generate foreign currency income. This in turn is expected to contribute to the country’s programs for poverty alleviation and social and economic development. 33. In June 1996, the Government of Lao PDR and the Government of Thailand signed a Memorandum of Understanding (MOU) on the delivery of 3,000 MW from hydropower sources in Lao PDR to Thailand. Four (4) hydropower projects were identified, namely, (1) Nam Ngum 2 (615 MW by 2010), (2) Nam Ngum 3 (440 MW by 2017), (3) Nam Ngiep 1 (260 MW by 2018), and (4) Nam Theun 1 (520 MW). 34. In order to export power to the transmission system of Electricity Generating Authority of Thailand (EGAT), a new 500 kV transmission line from Nabong in Lao PDR to Udon Thani in northeast Thailand was constructed and completed in July 2010. Initially, power generated from Nam Ngum 2 was evacuated through the 500 kV line on a 230 kV level through a switchyard at the site of Nabong substation in Nabong Village, Pakngum District. 35. The transmission line and substation project was developed by the Nam Ngum 2 Power Company Limited (NN2PC). The management of the project is being carried out by EDL’s project management team under the direction of the Distribution Manager. The environmental and socio-economic concerns on the project are being administered by EDL’s Environmental Office (EO).

A. PURPOSE OF THE REPORT 36. This Initial Environmental Examination (IEE) has been prepared for the Nabong-Udon Thani Transmission project which includes the 500kV transmission line and 230kV/500kV substation in Nabong. 37. The report aims to describe the existing and the proposed expansion project, its location, document the environmental performance of the existing project, and describe the potential impacts of the new development project vis-à-vis the existing environment including its impact to the adjoining community. The IEE attempts to provide a proposal on the mitigating measures to abate any adverse environmental impacts during the construction and operation of the project. The report also contains the findings of the due diligence conducted on the existing facilities (230kV substation and 500kV transmission line) and the programs that were implemented in achieving compliance with the EMP and EMoP.

2 ADB. Technical Assistance Report, Lao People’s Democratic Republic: Preparing the Na Bong-Udon

Thani Power Transmission Project. December 2007.

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B. STRUCTURE OF THE REPORT

38. This report is structured as follows:

Executive Summary - Summarizes critical facts, significant findings, and recommended actions.

Chapter I Introduction - Introduces the project, IEE report purpose, and approach to IEE preparation.

Chapter II Policy, Legal, and Administrative Framework - Discusses the environmental assessment legal and institutional frameworks and requirements of ADB and the Government of Lao PDR.

Chapter III Description of the Project - Describes the project location, key components and implementation phases.

Chapter IV Description of the Environment - Describes relevant physical, biological, and socio-economic conditions within the project area of influence.

Chapter V Anticipated Environmental Impacts and Mitigation Measures - Describes environmental impacts predicted to occur as a result of the project and identifies suitable mitigation measures.

Chapter VI Analysis of Alternatives - Presents an analysis of alternatives to the project.

Chapter VII Information Disclosure, Consultation, and Participation - Describes the process undertaken during project design and preparation for presenting the project to stakeholders; summarizes concerns raised and actions taken to address concerns; and describes planned information measures for carrying out consultation with affected people during project implementation.

Chapter VIII Grievance Redress Mechanism - Describes the project grievance redress framework for resolving complaints.

Chapter IX Environmental Management Plan - Presents the Environmental Management Plan (EMP), including required construction and operation phase environmental mitigation measures, an environmental monitoring plan (EMoP), and occupational and community health and safety requirements.

Chapter X Conclusion and Recommendation - Presents conclusions drawn from the assessment and recommendations.

Appendices - Provides references and supporting documentation and information.

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C. APPROACH TO PREPARATION OF IEE REPORT

39. This updated IEE is based on the requirements of ADB’s SPS 2009. Principal sources of information were the IEE prepared by EDL in 2007 and the IEE prepared by Fichtner in 2009. The environmental assessments that were outlined in the previous IEEs were integrated into this IEE. 40. Supplementary information were taken from direct consultations with EDL staff, field observations and site assessment, review of documents and project plans, and previous reports on projects implemented in the area. 41. The Environmental Categorization Form and Rapid Environmental Assessment (REA) checklist from ADB’s SPS 2009 were used for environmental categorization purposes.

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II. POLICY, LEGAL, AND ADMINISTRATIVE FRAMEWORK

A. ADB’S ENVIRONMENTAL POLICIES

42. All ADB financed projects must undergo environmental impact assessment. The Safeguards Policy Statement (ADB 2009) clarifies the rationale, scope and content of an environmental assessment as supported by technical guidelines (Environmental Assessment Guidelines 2003). Projects are initially screened to determine the level of assessment that is required according to the following three project categories: Category A such as hydroelectric dams that normally cause major environmental or social impacts; Category B for which minor impacts are expected and can be mitigated; and Category C projects that do not pose environmental or social impacts. 43. The Safeguard Policy Statement (SPS) 2009 introduces emphasis on the effective implementation of environmental safeguards. The objectives of ADB’s safeguards are to:

(i) avoid adverse impacts of projects on the environment and affected people, where possible;

(ii) minimize, mitigate, and/or compensate for adverse project impacts on the environment and affected people when avoidance is not possible; and

(iii) help borrowers/clients to strengthen their safeguard systems and develop the capacity to manage environmental and social risks. 3

44. The SPS 2009 contains a number of operational principles that includes the requirement to ensure that the measures identified during the impact assessment are included in the environmental management plan and were implemented in agreement with the borrower.

B. LAO PDR ENVIRONMENTAL POLICIES

45. The 1991 Lao PDR Constitution acknowledges the need for environmental protection in Lao PDR and requires the conduct of environmental assessment of potential positive and negative socio-economic impacts of a project and the development of prevention and/or mitigation measures to address harmful impacts. The environmental regulations of GOL are derived from the Environment Protection Law (EPL 02/99/NA 1999) and subsequent decrees and regulations, e.g. the regulation on Environmental Assessment in Lao PDR (1770/STEA 2000), the Law on Forests (No.6/2007 and Law on Wildlife (No 07/LN 2008).

46. Environmental Assessment. The Environmental Protection Law No. 02/99/NA (1999) specifies the “necessary principles, regulations and measures for managing, monitoring, restoring, and protecting the environment in order to protect human health, including the protection of natural resources and the richness of nature, and to ensure the sustainable socio-economic development of the nation”. Under Article 8, the law requires development projects and operations to undergo environmental assessment and to submit environmental assessment report accordingly. It also stipulates that projects that generate environmental impacts should be responsible to the resulting damage caused. The law affirms that environmental conservation must come before mitigation and restoration.

3 Asian Development Bank. June 2009. Safeguard Policy Statement, enforced January 2010.

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47. Under the law, the Water Resources and Environmental Administration (WREA) is assigned as the lead agency responsible for the protection, mitigation and restoration of the environment. Other Government of Lao PDR (GOL) agencies such as the Department of Electricity, Department of Forestry, etc. were also given defined roles on environmental conservation. 48. The law also requires the establishment of an Environmental Management and Monitoring Unit (EMMU) at all levels of government. The EMMU is responsible for the establishment and enforcement of sector management plans, mitigating actions for environmental damage, issuance of orders to adjust, suspend, remove or close down activities that cause negative impacts. 49. The Decree on the Implementation of the Environmental Protection Law (No. 102/PM), dated 04 June 2000 elaborates that all development projects, including State and private-owned, shall conduct an Environmental Impact Assessment (EIA) before the establishment and operation of these projects. 50. The Regulation on Environmental Assessment No.: 1770/WREA dated 3/10/2000 outlines the requirements in conducting the EIA. The regulation requires all electricity projects in Lao PDR to be environmentally screened according to the likely impact to the environment. The regulation stipulates that environmental assessment must include at least a Project Description as basis for project environment screening under Article 7 of the Regulation. If the project is not exempt under Article 8 of the Regulation, the environmental assessment must include an IEE as specified in Article 9 of the Regulation. For some projects, through the findings of the IEE, an EIA is required as specified in Articles 11, 12, 13, and 14 of the Regulation. An Environmental Compliance Certificate (ECC) is issued after review of the IEE/EIA report. A copy of the ECC is presented in Appendix 1. The ECC automatically expires if a project has not been implemented within two (2) years from ECC issuance. 51. On 16 February 2010, Decree No.122/PM was issued on the amendments in the environmental impact assessment requirements. It provides the guidelines for implementing Article 8 of the Environmental Protection Law, in relation to environmental assessment. It defines the principles and rules and measures on establishment, functions, management, and monitoring of environmental impact assessment, ensures that all public and private investment projects, both domestic and foreign, operating in Lao PDR, which create or may create adverse environmental and social impacts, are designed with the correct and appropriate environmental and social impact prevention and mitigation measures, and aims to effectively prevent, minimize, and resolve adverse environmental and social impacts derived from investment projects. 52. The WREA issued guideline no. 697 on 12 March 2010 specifying a list of investment projects and the EIA requirements for each project according to project scope/magnitude of work or project threshold. The WREA guidelines outline the category of projects requiring the submission of a full-blown EIA or an IEE report. Under this guideline, a project occupying a land area of more than 10ha is required to submit a comprehensive EIA while those having an area of less than 10ha should submit an IEE. 53. For any type of electricity project, the Department of Electricity (DOE) also ensures that environmental assessment is included in its decision to approve, finance, or undertake the

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project in Lao PDR4. This is supplemented by legislative requirements for managing environmental concerns in the power sector through Power Sector Environmental Policy Nos. 581, 582, 583, 584, and 585/MIH.DOE (04 October 2001). The contents and requirements for an EIA for an electricity project, including requirements for public involvement and development of an EMP are specified. 54. The DOE and the Ministry of Agriculture and Forestry (MAF) are given copies of the IEE or EIA report for review and evaluation. Comments of each agency on the IEE/EIA are presented to WREA for consideration before issuance of the ECC. 55. The project owner is required to establish monthly, quarterly, and annual reports on the project environmental monitoring to be sent to concerned agencies which include WREA, DOE and MAF. 56. Forest Resources Management. The Government of Lao PDR, through the Department of Forestry Inspection (DOFI) implements the Forestry Law (06/NA-2007) which revises the old Lao PDR Forestry Law No. 13/NA-2005. The new law aims to address the problems of illegal logging, smuggling of timber and wildlife, forestry-related corruption, and illegal land encroachment. Under the law, the DOFI is empowered to conduct forestry control operations, investigate allegations of illegal logging, make arrests and pursue prosecutions, collaborate with other agencies as well as the private sector and civil society in pursuit of forest law enforcement. 57. Under Lao PDR Forestry Law 2007, non-timber forest products (NTFPs) can only be taken from the managed zone of protected areas and not from the core zone. It is allowed only for subsistence and not for sale. 58. Lao PDR has three main state forest land categories, namely, Production, Protection and Conservation Forest Areas. These areas include forests, degraded and barren land, and village agricultural and settlement areas. A Production Forest Area is currently divided into sub-Forest Management Areas (sub-FMA) along a cluster of villages and with each sub-FMA having its own management plan. A Production Forest Area can include commercial harvestable zones, conservation and protection forest zones, and non-commercial production zones. A Conservation Forest Area includes a total protection zone, controlled use zone, and corridors and a buffer zone. A Protection Forest Area includes a total protection zone and a controlled use zone. These areas are administered by the Production, Protection and Conservation forest divisions of the DOFI, respectively and their line agencies at the provincial and district levels, with the participation of the village forest organizations. 59. Planting or regeneration in state Production, Conservation and Protection Forest Areas is mainly aimed at restoration of degraded lands to natural forests. Article 4, MAF Regulation 380 allows for tree planting in buffer zones of Conservation Forest Areas for household use. Article 43 of the Forestry Law allows tourism and recreation in controlled use zones of production, protection and conservation forests and buffer zones of conservation forest units. 60. The participatory management approach has been endorsed by the government to involve villagers in management decisions and actions in the government-administered Production, Protection and Conservation Forest Areas. The approach aims to address the

4 Department of Electricity. 20 November 2001. Regulation on Implementing EA for Electricity Projects No. 447/MIH,

People’s Democratic Republic of Lao

12

degradation pressures such as shifting cultivation and related fires, grazing, and illegal logging; to help develop village infrastructure; and provide new income sources for the communities through employment and other activities. 61. As per the regulations, only degraded and barren forest lands can be converted into non-forest land use and to plantations (Table 1). Future conversion decisions are to be based on a spatially-explicit national land master plan. In principle, there is to be no conversion or plantation development within the delineated Production, Protection and Conservation Forest Areas, except for small-scale plantations by villagers in permitted areas within village boundaries.

Table 1: Process of Forest Land Conversion and Permitting Institutions

Permitting Process and Institution Conversion of Degraded Land

Conversion of Barren Land

a) Proposal by Provincial Land Management Authority (PLMA);

b) Provincial Agriculture and Forestry Office (PAFO) agrees;

c) Approval by Provincial Administrative Office

≤100 ha ≤200 ha

a) Proposal by National Land Management Authority (NLMA)

b) MAF agrees c) Approval by National Government

100 – 1,000 ha 200 – 10,000 ha

a) Proposal by National Government b) Approval by National Assembly

>1,000 ha >10,000 ha

Sources: Law on Forestry (Amended) No. 06/NA, December 2007; Design Options for a Forest Carbon Legal Framework for Lao PDR, Unna Chokkalingam, November 2010 62. The natural forests within a village boundary are delineated and classified through participatory land use planning processes, and the designated village forests are handed to the village administration offices for sustainable management, preservation, development and use in accordance with the plans. Village or community forests include village protection forests for water sources, rivers and road sides, village conservation forests such as for spirit and cemetery forests, and village production/use forests. The village use forests can be used for timber harvesting for village infrastructure construction and household use, and for NTFP collection for household use and for sale as per approved management plans and village regulations. 63. At the village level, the Village Forestry Unit manages and reports to the District Agriculture and Forestry Office (DAFO). The unit proposes regulations on customary use of the village use forest and to be issued by the village administration office. The District Administration Office can authorize timber use for village infrastructure after an application from DAFO and in accordance with the provincial annual logging plan. The use of timber for house construction requires the certification from the village administration offices and the approval of DAFO. 64. Land Management. Land within Lao PDR is the property of the national community, and individuals are assigned to effectively use the land, but not treat it as a tradable commodity. The rights of those who have been allocated land, including the right to transfer the land are protected by the State. A District may grant the right to use agricultural and forest land within its

13

jurisdiction for other land uses. Individuals have the duty to preserve the land in good condition. An individual’s right to use the land can be terminated if the State expropriates the land for use in public interest, but the State must pay appropriate compensation damages. 65. Environmental Standards. Based on the Environmental Protection Law No. 02/99/NA dated 3 April 1999, a National Environmental Standards was developed by Lao PDR on 07 December 2009 for the environmental monitoring and control of pollution on water, soil, air and noise. The environmental standards provides the permitted limits of quality for groundwater, surface water quality, soil, ambient air, noise, wastewater discharges, and air emission from stationary and mobile sources. 66. Other Related Regulations. Other related decrees and regulations include the following:

Prime Minister’s Decree No. 164/1993 that established 18 protected areas and required the government to develop management plans for each area. Two additional protected areas, referred to as the National Biodiversity Conservation Areas (NBCAs), have since been added.

Decree on the Preservation of Cultural, Historical and Natural Heritage requires that in order to prevent exploitation of relics and antiquities, any person who discovers archaeological relics or a cultural site must inform the provincial and district offices within three days.

In addition to the above, Lao PDR is party to the UN Convention on Biological Diversity (1996) under which Lao PDR agrees to develop a national biodiversity conservation and sustainable use strategy, legislation for protecting species and populations that are threatened, integrate conservation and sustainable use of biological resources into national decision making, and conduct environmental assessment of proposed development projects with a view to minimizing negative impacts.

PM Decree No. 192/PM on the Compensation and Resettlement (2005) which sets out the objective and fundamental principle for compensation and relocation of project affected people.

C. INTERNATIONAL ENVIRONMENTAL CONVENTIONS

67. Lao PDR is a party to several international conventions that are relevant to environmental management. These international conventions include:

a) Ramsar Convention on Wetlands of International Importance Especially as Waterfowl

Habitat (2010);

b) Kyoto Protocol to the United Nations Framework Convention on Climate Change (2003);

c) Washington Convention on International Trade in Endangered Species of Wild Fauna

and Flora (CITES) (2004);

d) Convention on Biological Diversity (1996);

14

e) United Nations Framework on Climate Change (1992);

f) Basel Convention on the Transboundary Movement of Hazardous Wastes and their

Disposal (1995);

g) Copenhagen Amendment to the Montreal Protocol on Substances that Deplete the

Ozone Layer, London (1990);

h) Montreal Protocol on Substances that Deplete the Ozone Layer (1987);

i) UN Environmental Modification Convention (ENMOD) (1977);

j) Convention on International Trade in Endangered Species Wild Fauna and Flora (1973);

and

k) Convention Concerning the Protection of the World Cultural and Natural Heritage (1972).

D. PROJECT ENVIRONMENTAL CATEGORY AND REQUIREMENTS

68. An ECC for the Nabong-Thinthaen Transmission Line Project, including the 230kV/500kV substation was issued by WREA on 16 October 2007. Since the expansion project is already covered by the ECC issued by WREA, the project may be exempted from preparing another EIA subject to confirmation by WREA. 69. The project has been evaluated considering the completion of the Environmental Categorization Form (Appendix 2) and Rapid Environmental Assessment Checklist (Appendix 3). The adverse environmental impacts of the project are considered site-specific and reversible. Therefore, it has been classified as Category B in accordance with ADB’s SPS 2009. For Category “B” projects, the ADB requires an IEE.

15

III. DESCRIPTION OF THE PROJECT 70. The project consists of the following major interrelated components:

Component 1: Expansion of the 230 kV Nabong substation to 500 kV operating voltage Component 2: Acquisition of 500 kV transmission line from Na Bong substation to Udon

Thani.

71. The 230kV substation and 500kV transmission line were completed in July 2010. These are already operational but power is currently evacuated from the substation to the transmission line at 230kV operating voltage only.

A. COMPONENT 1: EXPANSION OF 230 KV TO 500 KV NABONG SUBSTATION

72. The Nabong substation area is situated within the Pak Ngum District, in the village of Nabong. The site covers an area of 42 ha and is approximately centered by geographic coordinates 18o10’00.92”N and 102o52’28.20”E. It is located about 56 km away from the City of Vientiane in the northeastern direction. 73. The substation evacuates power at 230 kV operating voltage through a temporary 400m long 230 kV transmission line, connected to the existing 500 kV transmission line. The temporary 230kV transmission line consists of 1 steel tower and 6 concrete towers. Once the facilities of the 500kV substation are completed, the temporary 230kV transmission line will be decommissioned and the existing 500kV transmission line will be directly connected to the 500kV switchyard and substation. 74. The bidding documents including the design of the 230kV/500kV substation are now being finalized. The expansion project will involve the construction and installation of facilities for the switchyard and control room. Additional equipment such as power transformer, circuit breakers, disconnecting switches, current transformers, and voltage transformers will be acquired for installation at the 500 kV substation. 75. Other planned facilities within the substation are additional area for control room, storage area for materials and equipment, workshop for maintenance of equipment, expansion of existing operator housing, and a training area. 76. The overall construction and installation works for the substation are scheduled to be implemented in 2013 up to 2016. The activities that will be implemented are:

Topographic and relocation survey

Soil investigation

Site preparation including cutting and clearing of vegetation, leveling and removal of cut soil

Foundation works

Procurement of equipment

Erection of substation equipment

Wiring to connect to control building

Testing and commissioning of 500kV substation

Decommissioning and removal of temporary 230 kV transmission line.

16

77. There will be about 400 workers that will be employed during the construction of the substation. The workers will be mainly sourced from qualified local workers with some technical personnel to be assigned by the main contractor. A temporary worker’s camp exists near the substation site. The expansion and improvement of the worker’s camp is being planned by EDL. 78. Currently, there are 5 workers assigned at the existing 230kV substation. Once the 500kV substation is completed, there will be about 20 additional workers that will be employed.

B. COMPONENT 2: ACQUISITION OF 500 KV TRANSMISSION LINE TO NABONG

SUBSTATION

79. The 27-km 500 kV transmission line from Nabong substation to the Lao PDR border in Mekong River will be acquired from NN2PC. This 500kV transmission line from Nabong substation to Thinthaen Village covers a strip of land with an area 60m wide x 27 km long (Figure 2). 80. The transmission line crosses an existing National Road No. 13 South at Kilometer 34-35 to the west through Thinthaen village, crosses the Hatxayfong road, and further crosses the Mekong River to Thailand. The transmission line passes through parts of 9 affected villages, 3 in each Districts of Pak Ngum, Xaythany and Hatxaifong, all within Vientiane Capital.

81. The 27-km transmission line is composed of 58 steel towers of various sizes and types, with 4 tension towers and 54 suspension towers. The standard span between each tower ranges from about 350m - 400m, depending on the terrain conditions along the designated transmission alignment. 82. During the operational phase, routine inspection, tests and maintenance works on equipment will be undertaken. Along the transmission line route, the routine inspection and maintenance activities include trimming of trees if above 3m high and checking of nuts and bolts to ensure structural stability. The regular maintenance and trimming of vegetation within the ROW is necessary to prevent damage to overhead power lines and towers. 83. Executing Agency. The Ministry of Energy and Mines (MEM) will be the Executing Agency (EA) and the Department of Electricity (DOE) and EDL will jointly be the implementing agencies (IA) and owner of the project. Project detailed design, including detailed transmission line surveys, preparation and evaluation of tenders, and construction supervision, will be undertaken by consultants in coordination with the MEM and EDL. 84. The construction of the substation will be contracted out under international competitive bidding (ICB) procedures. Management of the project will be carried out by EDL’s project management team under the supervision of the Distribution Manager. The environmental and socio-economic aspects of the project will be the responsibility of EDL’s Environmental Office.

17

Figure 2. Overview of Substation and Transmission Line

18

IV. DESCRIPTION OF THE ENVIRONMENT

85. The affected environment was described with information from previous IEE reports, from observations made during the site visit at the project area, from interviews with EDL staff, and from secondary data sources.

A. PHYSICAL RESOURCES

1. TOPOGRAPHY 86. A significant portion of the areas traversed by the transmission line is flatland. However, there are some rugged terrain and mountains in the central provinces such as Phou Phanang and Phou Khao Khouay mountains which are identified as National Biodiversity Conservation Areas (NBCA)5. 87. Moderately sloping terrain was observed in the vicinity of the substation site. The general elevation at the substation site at Nabong village ranges from 179 – 182 meters above sea level (masl). The Nabong village and access road which is located about 300 meters from the site is located at a lower elevation of 169 - 175 masl. The topography of the area gently slopes downwards to the Nam Ngum River as shown in Figure 3. 88. The flatland areas along the transmission line route are used for lowland cropping and rice cultivation by villagers.

2. GEOLOGY 89. Generally, the soil condition in Central Lao PDR is still good with relatively medium to high organic manure, available phosphate, especially in the agricultural lands that were just converted from rich forestlands and other types of land use a few years ago. The soils are mostly derived from sandstones and siltstones. These soils are generally highly weathered, moderately deep (1 to 1.5 meters or more) and drained. 90. Based on the information on soil conditions in Vientiane Capital that is available from the National Agriculture and Forestry Research Institute (NAFRI), MAF, the major groups of soils are composed of clayey and silty soils. The soils are generally suitable for rice cultivation and tree plantation including fruit trees6. 91. The moderately sloping terrain at the substation and the moderately deep layers of soils are particularly prone to erosion when vegetation is removed and the soils are exposed to rainfall and surface water flows. This situation enables soils to be eroded and flushed into the river, and result to increased turbidity. The turbidity of the river reduces water quality for aquatic life, domestic and livestock consumption.

5 Electricite du Laos. 2007. IEE Report on the Nabong-Thinthaen 500kV Transmission Line and Sub-

station. Lao PDR 6 Footnote 5.

19

Figure 3. Topographic map of the substation site

3. WATER RESOURCES 92. There are no major streams within the vicinity of Nabong substation, except for a small unnamed creek which traverses the substation site at the southwestern section. Figure 4 presents the location of the major streams and irrigation canal in the vicinity of the substation site. The said creek borders between the villages of Nabong and Phonekham. The creek flows about 700m from the substation and eventually leads to the Nam Ngum River. 93. Another water body near the substation site is the Nabong irrigation canal which is located east, about 350m from the substation. The villages of Nabong and Phonekham are served by Nabong irrigation scheme, which pumps water from Nam Ngum River.

20

Figure 4. Vicinity map showing communities surrounding the substation site

Base map source: Google Earth

94. The major rivers traversed by the transmission line ROW are Nam Ngum River and the Mekong River. There are some small streams and irrigation systems where the transmission line crosses such as Houay Som Bone, Houay Xam Xaan, Houay Mak Ngeo and some lowland areas as outlined in Table 2. These lowland areas are reportedly inundated in the rainy season especially within and around Sim Ma No, Khouay Deng and Thinthaen villages. But there is no area that is indicated as wetland or swamp. From the survey, it was found that most of the land area along the sides of the Nam Ngum River and creeks become flooded during heavy rainfall events.

Table 2: Summary of Rivers, Streams and Irrigation Canal along Transmission Line ROW

District Village River Stream No. of Irrigation

Canal

Pak Ngum Nabong Nam Ngum Xai Hong Phonekham Houay Som Bone 1

Xaythany Dong Khouay Houay Xam Xaan

Hatxaifong Sim Ma No Houay Mak Ngeo 1 Khouay Deng Hong Kok

Houay Donghinma 1

Thinthaen Mekong River Houay Noy 1

95. The Nam Ngum River is an important resource in the project area. The Nam Ngum River has a length of 1,403 km and drains an area of 17,000 sqkm. It is the largest river of Xiengkhouang and Vientiane provinces and one of the major tributaries of Mekong River in Lao PDR. The river source is located in the Plain of Jars which is about 1,000-1,100 m above mean sea level. After joining with Nam Lik, the Nam Ngum River flows down into the Vientiane Plain for about 80 km in southerly direction to Tha Ngone, and then for another 80 km in an easterly

NabongPrimary School

Access Road

Irrigation Canal

NABONG SUBSTATION

NABONG VILLAGE

PHONEKHAM VILLAGE

Unnamed creek

21

direction to join the Mekong River at Pak Ngum District. The annual discharge of Nam Ngum River is 23,021,280,000 m³.7 96. The river flows and carries high sediment loads in the lower reaches. The local soil types along the river increase runoff and the potential for flooding. 97. The transmission line crosses the Mekong River when it meets the line going to Udon Thani (Thailand border). The river is one of the longest rivers in the world with a length of about 1,900 km through Laos. Laos lies almost entirely within the Lower Mekong Basin. In general, the water quality of Mekong River is considered good or acceptable based on reports of the Mekong River Commission (MRC)8. The oxygen level is high and the nutrient concentration is still low. The primary concern in the water quality is sediment load and turbidity. Turbidity in the river is extremely high during the wet season with turbidity levels reaching 1,600 NTUs.

4. CLIMATE 98. The climate of central provinces especially Vientiane Capital is tropical and strongly influenced by the annual southwest monsoon rains that affect the region from April/May to September (mean annual rainfall for the year 2006 at Vientiane station is 1,930.6mm and at Naphok station is 1,342.3mm). The period of the dry season in Vientiane Capital is from October/November to April). The hottest month is April (33.1°C at Vientiane and 36.6°C at Naphok station), and the coolest month is January (17.5°C at Vientiane station and 15.0°C at Naphok station).

Table 3: Climate Data in Vientiane Capital, 2006

Month Na Phok Station Vientiane Station

Ave. Max Temp (oC)

Ave. Min Temp (oC)

Rain (mm) Ave. Max Temp (oC)

Ave. Min Temp (oC)

Rain (mm)

January 31.2 15.0 0.0 30.3 17.5 0.0 February 33.1 15.8 1.3 31.5 20.7 4.1 March 34.1 18.7 96.7 33.4 23.0 97.9 April 36.6 21.6 54.9 33.1 24.2 256.4 May 34.6 22.2 355.5 32.1 24.4 230.6 June 34.5 23.6 124.6 33.0 25.5 151.5 July 32.8 22.8 425.2 31.8 25.2 439.9 August 32.7 21.5 153.4 31.4 24.7 301.0 September 31.9 21.6 31.5 31.5 24.2 137.0 October 32.5 22.6 99.2 31.7 23.4 312.2 November 33.0 20.0 0.0 32.4 21.4 0.0 December 30.6 16.4 0.0 28.0 17.8 0.0 Annual Mean

33.1 20.2 1,342.3 31.7 22.7 1,930,6

Source: IEE Report, 2007

7 State of water environmental issues in Lao PDR, Water Environment Partnership in Asia,

http://www.wepa-db.net/policies/state/laos/river.htm 8 An assessment of environmental impacts of tourism in the Lower Mekong Basin, ISSN: 1683-1489,

MRC Technical Paper No. 28, December 2010

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C. BIOLOGICAL RESOURCES

99. Vegetation at the site of the substation includes bamboo (Bamboosa spec.) mixed with soft wood tree species such as mai Bok (Invingia mahayana), mai safang (Peltophorum dasyrachis), mai va (Syzygium spec.), mai khimou (Ormosia cambodiana), mai khefoi (Stereospermum fumbriatum), etc. It is reported that other valuable species of trees such as mai dou (Pterocapus macrocarpus), Mai tae (Afzelia xylocarpa) and others were removed from time to time for domestic use for construction of houses and other structures. It was heavily removed for exchange with electricity network installation for the village in the year 20029. 100. In general, the site of the substation is covered by forest of different types but the area does not represent a site of specific ecological value. The land use types and forest cover within the substation is categorized as follows:

Table 4: Land Use and Forest Cover at Nabong Substation

Land Use and Forest Type Area (ha) Percentage (%)

Mixed deciduous forest (MD)10 22 50 Unstocked forest (T)11 10 22 Shrub (SR) and Swidden (RA)12 12 28

Total 44 100 Sources: Forest Inventory and Planning, Department of Forestry (FIPD, DOF, May 2007) Environmental Assessment, 2009

101. The land uses and forest cover along the alignment of the transmission line from Nabong to Thinthaen village is covered by Mixed Deciduous Forest (14%), Unstocked Forest and Shrub (39%), rice paddy field and agricultural land (46%), and grassland (1%) based on the land use types and forest cover maps (Figure 5).

Table 5. Land Use and Forest Cover along the Transmission Line

Land Use and Forest Type Area (ha) Percentage (%)

Mixed deciduous forest (MD)13 22.33 13.95 Unstocked forest (T)14 62.47 39.03 Shrub (SR) and Swidden (RA)15 73.45 45.89 Grassland16 1.81 1.13

Total 160.06 100 Note: Area was calculated based on approximately 60m wide and 27 km long transmission line. Sources: Forest Inventory and Planning, Department of Forestry (FIPD, DOF, May 2007); Table 4.2.2a: Land Use Types and Forest Cover along the Transmission Line, 2007 IEE

9 Fichtner. 28 February 2009, Na Bong – Udon Thani 500 kV Transmission Project. Volume 2/5. Side Report:

Environmental Issues. 10

Mixed decidous forest type has deciduous tree species representing more than 50% of the stand. The forest storeys are not as dense as those of evergreen types and most of the seedlings and saplings are deciduous trees. Bamboo occurs primarily in this type of forest. 11

Unstocked forest area are previously forested areas in which the crown density has been reduced to less than 20% because of logging, shifting cultivation or other man-induced disturbances. 12

Swidden is an area where the forest has been cut and burnt for temporary cultivation of rice and other crops. 13

Mixed decidous forest type has deciduous tree species representing more than 50% of the stand. The forest storeys are not as dense as those of evergreen types and most of the seedlings and saplings are deciduous trees. Bamboo occurs primarily in this type of forest. 14

Unstocked forest area are previously forested areas in which the crown density has been reduced to less than 20% because of logging, shifting cultivation or other man-induced disturbances. 15

Swidden is an area where the forest has been cut and burnt for temporary cultivation of rice and other crops. 16

Grassland is unfertile or degraded land on which no trees or shrubs grow.

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Figure 5. Land Use and Forest Types within Project Area Source: Annex 2. IEE 2007

102. In terms of terrestrial fauna, previous reports and according to information from villagers (as cited in the 2007 IEE), there are only a few species of birds and common reptiles within and

24

around the substation site and along the transmission line corridor. These species are limited to domestic animals and several species of reptiles, insects, birds and vermin that have become adapted to human activities. Threatened or endangered species were not reported. This could be due to the fact that the area has been disturbed for a long period of time by previous hunting, habitat destruction, and by shifting cultivation, commercial wood cutting, forest fires, and other man-induced activities.

D. SOCIO-ECONOMIC CONDITIONS

103. Affected Population. The substation site occupied a village land belonging to Nabong Village (about 35ha) and Phonekham Village (about 9ha), both located within Pakngum District. Overall, nine (9) villages were affected by the substation and the transmission line alignment. 104. Within the Pakngum District, the reported household population is 527 while the total population was reported as 1,401 people based on the provincial census. In the study prepared by EDL in 2007, the total number of households in all 9 affected villages is 2,228 households (HHs) with a total population of 5,887. According to the study by EDL, 12.3% of the total population live in good conditions, 32.9% in medium conditions, 52.4% in sufficient and 2.4% HHs have to be assessed to live in insufficient conditions. 105. Validation of affected households was conducted by EDL as part of the compensation survey of affected families and structures. The survey revealed that there were 24 affected households at the substation site, representing 4.6% of the total households of Pakngum District. The validation survey by EDL also revealed that there were 219 affected households and one crematory within the 9 affected villages. The result of the survey was used as basis for the computation of the compensation for affected households, land, and other structures.

Table 6: Number of Households in Affected Villages

District Affected Village

Total No. of Households

No. of Affected Households

Compensation Payment (kip)

Pak Ngum Na Bong 234 13 809,622,616

Phonekham 134 7 6,196,000

Houa Na 159 4 100,623,685

Sub-Total 527 24

Xaythany Na Khao 296 49 257,670,500

Bo Lek 438 14 31,796,800

Dong Khouay 264 10 33,266,460

Sub-Total 998 73

Hatxaifong Sim Ma No 202 64 242,644,200

Khouay Deng 346 21 57,743,000

Thinthaen 155 37 244,202,700

Sub-Total 703 122 TOTAL 2,228 219 1,783,765,961 kip

Notes: Total number of affected households was based on the compensation survey conducted prior to the construction of the transmission line and substation. Source: EDL

106. Heritage and Culture: Within the 9 villages encompassed by the substation and transmission line project are 5 main ethnic groups, namely, Lao, Phouan, Phou-Thai, Hmong,

25

and Khmu. The religion of most of the ethnic groups is Buddhism while only a few are Spirit. One village crematory in the temple area in Na Khao Village in Xaythany District was traversed by the ROW of the transmission line. The traditional protocol and spiritual rituals were observed and followed by EDL prior to the construction of the transmission line. Compensation was given by EDL to the temple for the relocation of the crematory. 107. Sources of Income. Table 7 presents the main sources of income based on the interview on villagers conducted by EDL. The villager’s sources of income are agriculture and livestock (57%), handicraft (14.1%), employment in private office (7.3%), employment in government office (7.3%), non-timber forest product collection and selling (6.5%), small business (3.7%), and other income sources (4.1%)17.

Table 7: Main Sources of Income in Affected Villages

Villages Agricultural production

and livestock

NTFP collection

and fishing

Small business,

selling and services

Handicraft and

household industry

Private employees or workers

Government employees

Others

Nabong 0 0 20 78 4 11 0

Phonekham 100 95 2 70 0 0 0

Houa Na 75 14 18 25 21 12 0

Na Khao 240 0 0 90 0 9 0

Bo Lek 384 0 27 131 0 64 0

Dong Khouay 264 0 0 0 0 0 0

Sim Ma No 175 43 12 1 2 34 115

Khouay Deng 160 30 24 0 176 75 0

Thinthaen 198 0 0 0 0 0 0

Total 1596 182 103 395 203 205 115

Percentage 57% 6.5% 3.7% 14.1% 7.3% 7.3% 4.1%

Source: IEE Report, EDL 2007, based on interview with villagers.

108. Traditional handicraft making have been practiced in Lao PDR to generate additional household income. These handicrafts and weaving activities include basketry, string bag making, rice box making and other traditional products made from bamboo and rattan are small home businesses within the project area. 109. The main crop varieties grown in the area are mostly rice with some supplementary plots of maize, sugar canes, cassava, chilly, eggplant and different kinds of vegetables. Other crops like cassava, sugar canes, banana, papaya, chilly and vegetables are also grown in the backyard garden together with different kinds of fruit trees. Indigenous glutinous rice varieties are largely grown together with normal rice variety in parts of land plots. Most of the rice and vegetables produced are mainly for household consumption. Surplus rice, vegetables and other crops are sold in local markets. However, due to lower levels of productivity in small plots of cultivated areas and the distance to the main markets, most of the local villagers within the project area sell much less of their agricultural produce. 110. The substation site itself is not used for rice cultivation. Residents collect firewood, mushrooms, bamboo shoots, and wild edible leaves for home consumption and trading from the

17

Environmental assessment, Fichtner, 2009

26

site of the substation. Meanwhile, the transmission line passes in part through paddy fields, forest area, tree plantation and housing land. 111. Livestock production is another source of income of the villagers. Almost 90% of the rural households raise one or more kinds of livestock such as buffaloes, cattles, pigs, chicken, and ducks. The sale of the livestock is a major source of income by the household. On the average, a household engaged in livestock production maintain at least 1 - 2 buffaloes and 3 - 4 cattles. The manure produced from livestock production is used as fertilizers for the rice and vegetable farms. 112. Another source of income by the villagers, are the NTFPs especially in areas where the forest resources are still abundant. Species such as mushrooms, bamboo shoots, wild fruits, wild vegetables, and medicinal herbs are harvested by villagers. Firewood, bamboo, and other forest timber are also being gathered for handicraft making, house construction, roofing, and fencing.

113. Fishing is a secondary activity for some rural households, with fish often being a source of daily household food and sometimes a source of income in the villages near the main rivers of Nam Ngum and Mekong. There are some households that maintain fishponds but majority of fish come from the rivers. 114. Commerce and Industry. Based on available information in the affected villages, there are about 2 – 3 shops engaged in marketing of retail goods such as soft drinks and other dry goods. There are also about 1 -2 small noodle shops in each village. However, most of the affected villages do not have large commercial enterprises18. 115. Industrial activities within the project site include milk factory, wood processing factory, sand and gravel quarry and auto repair garage. 116. Electricity and Transportation. All nine villages have access to electricity and are served with moderately good earth roads. The nearest markets are mostly located at the district center but due to the availability of several buses and transport vehicles, the people prefer to go to markets in Vientiane Capital. The maximum distance is about 50 km from Nabong Village to Vientiane. The transport system from Nabong and Phonekham villages includes one public bus which is available three times a day (round trip) from the villages to the capital center and about five private Hyundai porters modified as transportation vehicles. 117. Water Supply. The villages have no access to tap water supply. The residents traditionally rely on wells for drinking and washing purposes. Some of them use electric water pumps to draw water from tube wells for household consumption 118. Education. There is at least one primary school existing in each village and there are two secondary schools at Nabong and Sim Ma No Villages. The nearest school to the substation site is the Nabong Primary School. As part of the social assistance program of EDL, additional classrooms were built for the Nabong Primary School from funds provided by EDL. Photograph of the classrooms built by EDL for Nabong Primary School is shown in Photo __. 119. Based on the interview conducted by EDL in 2007 with the Chief of Villages, majority of the population within the project area completed Upper Secondary School (51.7%), followed by

18

Footnote 5.

27

those who finished Literacy/Primary School (41.8%). Only about 0.3% reached the university or higher education level. 120. Health. The most common diseases reported by the villagers are Dengue fever, Malaria, Diarrhea, and Conjunctivitis19. Limited health services are available in almost all the villages. Most of the villages have no dispensary or village clinic except one dispensary at Ban Bolek village. The Thangore, Xaythany District Hospital is the nearest hospital which is located about 20 km from Nabong Village. Several national hospitals exist in the capital city. 121. A survey conducted by USAID in 2008 reported that the prevalence of HIV/AIDS in Lao PDR is low at about 0.1% in 200520. However, Vientiane has been identified by the Center for HIV/AIDS and Sexually Transmitted Infections (STIs) as one of four “hot spot” provinces in Lao PDR. The other provinces include Savannakhet, Champasak, and Luang Phrabang. The vulnerability of Lao PDR to the HIV epidemic was attributed to the low level of knowledge about the disease among the general population (RAP, 2009). 122. The Resettlement Action Plan (RAP) of the project developed in 2009 identified the potential for spread of HIV/AIDS, considering that there are a number of construction workers that will be present during the construction of the project. Therefore, an awareness program for workers and for the Government was planned for the project.

19

Footnote 5 20

Side Report No. 2 – Social Issues, Na Bong-Udon Thani 500kV Power Transmission Project, Fichtner, 27 February 2009.

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V. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES

123. Environmental impacts have been assessed considering the present environmental setting of the project area, nature and extent of the proposed activities. Particular emphasis is given to the activities to be implemented during the construction of the facilities for the expansion of the substation within the 42 ha site. Important impacts associated with the operational aspects of the existing transmission line and 230kV substation is also discussed. 124. The impact assessment of the project components was structured into the 1) pre-construction phase of substation; 2) construction phase of substation and 3) operation phase of both substation and transmission line. Mitigating measures are recommended to avoid or minimize adverse environmental impacts.

A. POTENTIAL IMPACTS DURING THE DESIGN AND PRE-CONSTRUCTION PHASE

125. The design and pre-construction impacts are related to project siting which includes the substation site and the alignment of the transmission line. 126. The ROW of the transmission line is characterized by rice paddy field, grassland, shrub land, and some sections with mixed deciduous forest. There are scattered houses and villages with low population density. The unavoidable impacts from project siting include the permanent alienation of land and vegetation for the transmission line tower bases, substations, and access road, and the cutting of large trees within the ROW. 127. The land needed for the substation and ROW for the transmission line has already been compensated following the compensation guideline which was agreed with the stakeholders and Vientiane Capital. Vientiene Capital issued its acceptance of the property compensation of the impacted people by the project on 09 March 2011. The Certification from Vientiane Capital is presented in Appendix 4. A total of 1,783,765,961 kip was compensated to 219 households in 9 villages. 128. The potential adverse environmental impacts associated with the location of the substation and transmission line have been minimized through the selection of a site whereby only a few households will be affected. The siting of the substation and transmission line also took into consideration monuments of cultural or historical importance and does not affect any environmentally sensitive receptors, national park and reserve forest areas. 129. Within the 42 ha Nabong substation site, there are no affected households itself since the area already belongs to EDL. Therefore, there will be no impact on resettlement or compensation on the proposed substation expansion project. 130. During the initial phase of the design of the expansion of the substation, the EDL and designers need to take into consideration a number of potential impacts such as changes in topography and hydrology, pre-identification of disposal of cut soil, and environmentally responsible sourcing of materials, equipment, and goods. These concerns to be taken into consideration during the planning phase are discussed in the succeeding sections.

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1. PLANNING FOR CHANGES IN TOPOGRAPHY 131. The visual appearance of the landscape around the site of the substation will change because of the leveling of the expansion area to about the same elevation as the existing 230kV substation. The impact to topography will be permanent once the project begins with the clearing and ground leveling works. 132. To prevent soil erosion during site clearing and removal of vegetation at the site, the project designers should plan for mitigating measures such as the possible use of the cut soil as fill material for the low-lying areas within the 42 ha land. If there will be excess cut soil, a disposal site for cut soil, together with bushes and other vegetation that will be removed from the site should be pre-identified prior to commencement of construction works.

2. PLANNING FOR CHANGES IN HYDROLOGY AND FLOODING IN AFFECTED POPULATION 133. The small, unnamed creek is the nearest water body to the substation site. The creek traverses the southwestern section of the site and is likely to be the receiving point of potential runoff from the substation. It is not yet clear whether the section of the creek within the property will require diversion since the site development plan is still being prepared at this time. 134. There is also an irrigation canal located on the east that is bordered by the village access road and built-up areas. The irrigation canal will also likely be impacted to some extent by runoff from the project site and from frequent movement of vehicles to the substation site. 135. Considering that flooding has been reported in villages, particularly near streams due to overflowing during intense precipitation, the designers should take into consideration the existing hydrology of the creek. Some areas are vulnerable to flooding and unpaved areas get muddy and prone to soil erosion. Soil erosion is anticipated mainly from the clearing of the site and cutting of soil as required during site preparation. This may be further aggravated when vegetation at the substation site is removed and cleared. Vegetation helps protect soil cover and prevent runoff. Sediment runoff could also potentially occur at earth stockpiles and at unconsolidated embankment areas. 136. As part of the design considerations in planning for the expansion of the substation, the drainage plan should not interfere with the natural drainage on adjacent lands and should be laid out as part of the detailed design of the substation. The drainage plan should take into consideration the increased runoff from the site due to the clearing and development of the substation area. 137. Timing is one of the critical factors involved in erosion and sedimentation control in construction sites. Careful scheduling of construction operations can minimize the exposed area during the rainy season. As much as feasible, the site clearing, excavation, and other earthworks should be scheduled during the dry season.

138. Before the commencement of the site clearing activities, sediment traps, basins or ponds, whether permanent or temporary, should be planned and established. The key factor is to anticipate erosion problems before the development begins and then to implement control measures in phases (temporary measures leading to permanent measures) as the project is in the various stages of completion.

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3. PLANNING FOR THE CONSTRUCTION CAMP 139. The location of the worker’s construction camp is crucial in planning for environmental safeguards because of the potential impacts to the environment and the community that includes water pollution, sanitation, and health hazards. 140. The expansion of the Nabong substation will require the services of about 400 workers between year 2013-2016. There is a planned expansion of the existing worker’s camp which was utilized during the construction of the existing 230kV substation. There are existing water supply and toilet facilities at the existing construction camp but additional facilities may be necessary if an expansion of the camp is planned. Insufficient toilet provisions may encourage open defecation and may increase the transfer of water-borne diseases. In addition, lack of potable water supply may encourage spread of diseases and lead to health problems and unsanitary conditions at the site.

141. Adequate sanitation facilities are recommended to prevent these potential problems at the workers camps. The provision of facilities to maintain environmental health, hygiene, and sanitation in the construction camp should be included in the bid documents of contractors. 142. In order to introduce environmentally sound construction practices at the early stage of project development, the contractors will be required to submit together with their tender a Method Statement and schedule of environmental mitigation measures in response to the developed Environmental Management Plan. This is to ensure that the contractors have made sufficient provisions, plans and resources to implement mitigation measures in the EMP.

4. PROCUREMENT OF EQUIPMENT, MATERIALS AND GOODS 143. The expansion of the substation will require the procurement of various equipment and materials, both during construction and operation of the project. Some equipment may contain hazardous materials such as insulating oils /gases and fuels. 144. The ADB guidelines on Environmentally Responsible Procurement (2007) encourages borrowers and executing agencies to ensure, wherever possible, that the goods and services procured under ADB-financed projects have been rendered in a responsible manner with a view to resource efficiency, waste minimization and other environmental considerations21.

145. In order to comply with the best international practice and ADB guidelines, all equipment of the project will not contain Polychlorinated Biphenyl (PCB) or other hazardous or persistent polluting chemicals. In the procurement documents, EDL shall specify that the transformers, transformer oil and other equipment are to be free from PCB and other petroleum fractions that may be harmful to the environment.

21

ADB. 2007. Environmentally Responsible Procurement – A Reference Guide for Better Practice. Manila.

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B. POTENTIAL IMPACTS DURING THE CONSTRUCTION PHASE

1. EROSION, SEDIMENTATION, AND FLOODING IMPACTS

146. As revealed during the field survey, the access road from Nabong village to substation site is already concreted and the 230kV substation is already completed. The remaining area to be disturbed and developed is the 500kV switchyard and the Nam Ngum N3/Nam Ngiep switchyards at the substation site. 147. During the construction of the additional facilities of the 500kV substation, there is a potential for the construction works to have an impact on land and water bodies. With the clearing of land at the substation site, erosion, sedimentation of the creek, and flooding of low-lying areas in case of heavy rainfall may potentially occur. The earthworks will result to the exposure of the soil surface to the forces of weathering. 148. In order to prevent flooding, erosion and runoff of sediments, silt traps or temporary sedimentation facilities should be set-up to trap and settle out runoff from the construction area. Likewise, temporary barriers and trenches should be constructed around the mounds of materials to abate the spread of spoils through surface runoff. In combination with the provision of silt traps, the contractor can also implement other alternative methods to control erosion such as:

scheduling of clearing and grading during the dry season

clearing only of areas necessary for construction

locating potential sources of pollution away from steep slopes, water bodies or other critical areas, and

cover and stabilize stockpile of topsoil.

149. The stockpiles should be covered before rain events to prevent wash out due to runoff. If possible, there should be an intervening vegetated buffer from water courses to control sedimentation in the stream.

150. The effect of sedimentation during project construction is only temporary. Upon completion of the construction stage, exposed surfaces will be concreted while other areas for landscaping would stabilize soil with the growing of vegetation.

2. GENERATION OF CONSTRUCTION WASTES 151. The construction of the substation will generate excavated spoils during the site clearing and laying of the foundation for the equipment and building. Construction activities will also generate debris such as discarded construction materials, cement bags, wood, steel, lubricants, fuels, and vegetation debris. Domestic solid wastes will also be generated from the construction camp. 152. Solid wastes will also be produced when the substation equipment and electrical parts are delivered at the site for installation. This will primarily include packaging materials which could consist of wooden pallets, plastic, foam, and cardboard boxes. Likewise, once the 500kV substation is ready to operate, the 230kV temporary transmission line will be dismantled and will result to the generation of dismantled materials and wastes.

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153. The generated wastes during construction, installation of equipment and dismantling of temporary transmission line have the potential to contaminate land and water resources. Air pollution will also be generated when practice of burning wastes is undertaken by workers. 154. With proper collection and disposal procedures, the generation of construction wastes will have minimal impact on the environment. Construction materials and stockpiles of spoils should be covered to reduce material loss. The stockpiles, lubricants, fuels, and other materials should be located away from steep slopes and water bodies while solid wastes should be disposed of properly in a designated disposal area within the construction site. All domestic solid wastes need to be segregated at source into biodegradable and non-biodegradable for disposal at designated solid waste disposal site. 155. Wastes generated from the packaging materials of delivered electrical equipment and parts and the steel parts of the 230kV transmission towers have the potential for recycling and reuse. The packaging materials can be collected separately and recycled by EDL. Other steel parts can be stored and used by EDL as spare parts. Residual wastes will be disposed of in local approved landfills.

3. IMPACT ON AIR QUALITY 156. During the construction of the substation, the activities such as excavation and movement of construction vehicles along the access roads would contribute to the increase in ground level concentration of total suspended particulates (dust). 157. The hazards and nuisance to communities caused by dust at the substation site will not be significant since there are no houses located near the site. However, the existing equipment and facilities at the control room of the 230kV substation may become affected by dust. The equipment is quite sensitive to dust and would need to be protected properly to avoid damage. 158. The dust generated when construction vehicles and equipment pass through the access roads will have an impact to communities living along the access roads. Dust pollution will affect air quality and create health problems to people. 159. In order to control dust emission during dry and windy conditions along the access roads, the contractor will be required to spray water along the gravel roads where houses are located especially in situations where the road becomes dry and dusty.

4. IMPACT ON NOISE 160. The major sources of noise are movement of vehicles transporting construction materials and equipment to the site and the operation of construction equipment such as generators, excavators, and concrete mixers. 161. Noise produced during construction within the substation site will have negligible impact on the community because the villages are located far from the site to be affected by construction noise. However, noise due to the movement of vehicles along the village access road may potentially result to nuisance. If necessary, no construction work or deliveries should be carried out during the night.

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5. MOVEMENT OF CONSTRUCTION VEHICLES ALONG ACCESS ROADS 162. The hauling of materials to the construction site will result to frequent movement of heavy equipment and construction vehicles along the village access road. Aside from the generation of noise and dust on hauling routes, the movement of construction vehicles will disrupt normal traffic patterns and expose the villagers to risk of injury or accidents. 163. To alleviate such impacts to local settlements, the contractor should closely coordinate with the local communities and engage good practices for traffic management. The contractor should require its drivers to maintain speed of not more than 30 kph when passing through built-up areas.

6. PLANTING OF VEGETATION 164. The development of additional area for the expansion of the substation will result to the removal of trees and vegetation. In addition, the influx of workers from outside the area may result to the extraction of forest products such as firewood and create additional pressure on the ecosystem. As a mitigating measure, the extraction by workers of forest products such as firewood outside the substation area will be prohibited. 165. Although it is not required by the new Forestry Law which took effect in January 2008 that cleared forest has to be replanted by the project at other sites, the planting of trees and shrubs through the development of a landscape management plan at substation site is recommended as a compensation measure for the vegetation that was removed from the site. 166. The EDL should identify and conduct an inventory of trees to be cut. Trees and shrubs native in the region should be planted in order to preserve the ecological value of the habitat. The introduction of vegetation foreign to the region will have an impact on insects serving as food for birds and other animals that are often highly adapted to the plants of their own distribution area.

7. OCCUPATIONAL HEALTH AND SAFETY 167. Construction activities may cause harm and danger to the lives and welfare of workers. The wearing of Personnel Protective Equipment (PPE) such as hard hats, safety gloves, ear mufflers, and other materials should be strictly imposed. A construction health and safety plan needs to be prepared and implemented by the contractor. 168. The existing health services near the substation site in the Ban Bolek village have limited resources to accommodate any additional patients from the construction workforce. Therefore in the construction phase, the contractor will be required to provide first-aid facilities for the workers and at least one first-aider should be available at the construction camp. 169. Vectors such as mosquitoes may be encountered at any stagnant water which is allowed to accumulate in temporary drainage facilities. Dengue fever has been identified by villagers as one of the diseases in the community. Temporary and permanent drainage facilities should be designed to facilitate the flow of water from all areas and prevent the accumulation of surface water ponds. Regular spraying should be done if mosquitoes are observed to thrive.

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170. In addition, the potential problem concerning HIV/AIDS was identified with the influx of workers at the construction site22. The implementation of an HIV/AIDS testing and screening program is necessary as a step towards controlling the spread of the disease. An awareness program for workers and the public was added to the EMP regarding HIV/AIDS.

8. COMMUNITY HEALTH AND SAFETY 171. The project construction will result to modest impacts associated with community health and safety such as construction traffic, transport of materials, fires, emergency spills of materials, and unauthorized entry by the villagers into dangerous working areas. 172. To mitigate these potential impacts, the civil works contractor will be required to develop a Community Health and Safety Plan (CHSP) that incorporates good international practice and recognized standards. The CHSP should include emergency response and preparedness procedures to be developed in close consultation with potentially affected communities and local authorities. The plan should include specific emergency response procedures, communication systems and protocols, interaction with local and regional emergency and health authorities, provision of emergency equipment and facilities such as fire truck, emergency service vehicles, and fire drills. 173. The CHSP should also include a plan for fencing of the entire construction area and procedures for posting warning signs as required to protect local community members from dangerous work areas. The warning signages should be printed clearly in both English and Lao for better understanding of the villagers. In order to minimize risks from construction traffic, all delivery vehicles will be required to observe the speed limit when passing through built-up areas.

C. IMPACTS DURING THE OPERATIONAL PHASE

174. The most significant impacts expected to arise from the project are major improvements to access to electricity by the community. The project will help Lao PDR to enhance its hydroelectric resource and promote economic growth of the country and the region. The project is also expected to enhance regional cooperation in the power sector. 175. There are no major adverse environmental impacts during the operational phase of the 500kV substation and transmission line. The expected adverse impacts during the operational phase are confined within the project area. These are generally related to the occupational health and safety issues as well as management of residual wastes. The impacts are reversible, manageable, and can be mitigated with proper engineering and management controls.

1. OCCUPATIONAL HEALTH AND SAFETY 176. The occupational health and safety issues inherent to the operation of transmission line and substation include hazards due to exposure to live power lines and high voltage systems, working in heights and risks of accidents, and potential exposure to electric and magnetic fields. Accidents that may occur include electro-cutting, lighting, fires, and explosion.

22

Fichtner. 28 February 2009. Na Bong – Udon Thani 500 kV Power Transmission Project. Side Report No. 1 – Environmental Issues, Volume 2.

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177. Exposure to Live Power Lines and High Voltage Systems. Workers may come in contact with live power lines during the maintenance of the facilities and electrocution from direct contact with high-voltage electricity is a hazard directly related to power transmission lines and facilities.23 178. The EDL and contractor should be guided by the “Environmental, Health, and Safety Guidelines – Electric Power Transmission and Distribution” (IFC) dated 30 April 2007 when working at the transmission and substation facilities. Some of the prevention and control measures when working with live power lines are:

Restricting access to electrical equipment by workers only trained and certified to work on electrical equipment

Adherence to electrical safety standards

Proper grounding and deactivation of live power distribution lines during maintenance work or if working in close proximity to the lines

Provision of Personnel Protective Equipment (PPE) for workers, safety measures, personal safety devices, and other precautions

Observe guidelines to minimum approach distances for excavations, tools, vehicles, pruning, and other activities when working around power lines and the substation.

The entrance to all buildings, vaults, rooms, or enclosures containing exposed live parts or exposed conductors should be kept locked unless such entrances are under the observation of a qualified person at all times.

Switchboards, panel boards, industrial control panels, meter socket enclosures, and motor control centers that are likely to require examination, adjustment, servicing, or maintenance while energized should be field marked to warn qualified persons of potential electric arc flash hazards.

179. Working in Heights. Accidents may happen when working in heights. However, a worker safety plan may be implemented to reduce risks that include testing of structural integrity prior to proceeding with the work and the use of fall protection measures. 180. Worker Exposure to Electric and Magnetic Fields (EMF). Typically, electric utility workers have higher exposure to EMF than the general public because of working in close proximity to electric power lines. The occupational EMF exposure should be minimized through the implementation of an EMF safety program24 that includes:

Identification of potential exposure levels in the work area including surveys of exposure levels and establishment of safety zones

Limit access to properly trained workers and those equipped with appropriate PPE when entering safety zones.

Utilization of personal monitors during work activities

Posting of safety signages and warning signs.

2. COMMUNITY HEALTH AND SAFETY 181. Electrocution. The community may also be exposed to electrocution hazards as a result of direct contact with high voltage electricity or from contact with tools, vehicles, or other

23

International Finance Corporation (IFC), Environmental, Health, and Safety Guidelines – Electric Power Transmission and Distribution. 30 April 2007. 24

Footnote 23

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devices that come in contact with high-voltage electricity. To prevent these hazards, EDL needs to implement the following improvements:

Provision of signs, barriers and gates/posts surrounding transmission towers particularly in built-up areas

Grounding of conducting objects such as fences or other metallic structures near power lines.

182. Exposure to Electric and Magnetic Field. The transmission frequency commonly used in transmission systems ranges from 50Hz – 60Hz which is considered as extremely low frequency25, with impacts becoming low with distance. The electric fields become shielded by trees, buildings, and other materials that conduct electricity. In general, the electric fields are strongest close to the source and diminish with distance. 183. The World Health Organization (WHO) reported that there is still weak evidence about substantive long-term health issues related to low frequency electric fields at levels generally encountered by members of the public. The potential health effects associated with exposure to EMF is not well-established due to lack of empirical data demonstrating adverse health effects. However, the public should be warned about the safety distances from the transmission system and power lines through warning signages.

3. MANAGEMENT OF HAZARDOUS WASTE 184. Chemicals that are commonly handled in the transmission lines and substation is mineral oil in transformers and other electrical components and liquid petroleum fuel. There are also potential hazardous materials and oil spills associated with the operation of equipment and retrofitting/maintenance works. 185. Storage facilities of liquid petroleum fuels for the generator sets and for vehicles and other equipment are potential sources of accidental spills. Oil leak or accidental spills of hazardous materials could give rise to contamination of soil and water 186. The transformers and equipment should meet international standards and regular maintenance and inspection program should be undertaken to check leaks. The areas around the substation transformers and oil storage areas should be provided with secondary containment with impervious bund capable of holding the oils, fuels, and hazardous wastes in the area. Discharges from these spill bunds with the potential to be contaminated with oil should be directed to the oil-water separators. These are particularly necessary within the substation site and at the maintenance yard. 187. Other chemical and oil spill prevention measures that need to be instituted are emergency spill response procedures, clean-up, and remediation of contaminated soil.

4. EMERGENCY PREPAREDNESS AT SUBSTATION 188. There are several risks that could occur with the operation of the transmission line and substation. Among these are the likelihood of cable being damaged, vandalism of the equipment along the transmission line, corrosion of the towers over time which could compromise its structural integrity, potential fire events, explosion of equipment, and being hit by lighting.

25

Footnote 1.

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189. Lighting arresters are provided along the transmission line and should be provided at strategic locations in the substation. There should also be provision for ensuring security of the cable and substation to avoid vandalism. Regular inspections of the line and the facilities would help identify missing or corroded parts. 190. In case of fire events, explosion, and other related situations, a fire management strategy which may be included in the emergency preparedness and response plan of the project should be developed. Sufficient number of fire protection equipment and fire water tank should be available to address the emergency requirements of the substation. 191. Workers should be trained on emergency preparedness and response procedures and a manual on safety and emergency procedures should be prepared and disseminated to workers like fighting oil fires, e.g. from transformer.. The procedure should outline the system to identify potential emergency situations and potential accidents that can have an impact to the health and safety of the workers and to the community.

5. MANAGEMENT AND CONTROL OF VEGETATION AT TRANSMISSION LINE 192. One of the regular programs to maintain the integrity of the transmission line is the trimming of tall trees and vegetation along the ROW. This is being done to maintain the necessary conductor clearance of the line. In addition, the presence of vegetation along the ROW provides habitat for birds. With reduced vegetation growth along the ROW, the risk of bird collision on the transmission line will be prevented. 193. The vegetation maintenance activities may cause minor disturbance to local people. This can be mitigated by limiting use to already existing roads or tracks to reach the transmission lines and informing the locals in advance through the village heads on the schedule of the maintenance works. Care should be observed to avoid encroachment into rice or crop land of villagers by workers who will undertake vegetation trimming. 194. EDL does not allow the use of herbicides and pesticides to control vegetation growth. Burning to control vegetation along the transmission ROW is also prohibited. 195. To minimize the impacts associated with the removal of vegetation, such activity will only be allowed within the designated width of the ROW and up to the extent of achieving the required clearances. Chain saws and other heavy equipment will not be allowed for the removal of trees. Only manual or hand tools will be used for trimming.

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V. ANALYSIS OF ALTERNATIVES 196. The design of the transmission lines and the substation were considered following the survey of the topographic and land use and forest cover in the area. Preliminary route selection for the transmission lines and substation was carried out by the engineering team. The following were the engineering, environmental, and social considerations applied during the selection of the transmission line:

Alignment should be as straight as reasonably possible between the starting and end points so as to minimize costs of construction and materials

Wherever possible, the alignment should be in close proximity to an existing road to facilitate access during construction and maintenance.

Avoid existing settlements to minimize resettlement

Minimize the need to expropriate land, particularly village holy forest, village cemetery, cultural or historical sites, plantation areas, and farm land

Avoid areas of mature forests and other environmentally sensitive areas including NCBAs, NPAs, PCFs, and eco-tourism sites

Ensure adequate clearance between the alignment and significant cultural/historical monuments/sites.

Minimize visual intrusion upon viewscapes considered as unique or valuable tourist attraction.

197. The detailed alignment survey which involved cutting survey lines through vegetation to enable the cadastral survey team to take unimpeded shots along sight lines was conducted. The tower locations were marked on the ground along with the centerline of the alignment. Further refinements to the transmission line were integrated based on site specific information collection in the field, including concerns raised during the public consultation meetings with affected villagers. 198. The following presents the considerations made during the design of the substation and transmission line alignment.

A. CONSIDERATIONS FOR VEGETATION AND WILDLIFE PRESERVATION

199. The design of the transmission line took into consideration the areas of natural forests and wildlife habitats. The design of the ROW acknowledged that the clearance of vegetation along the alignment can lead to fragmentation of already diminishing natural forests and wildlife habitats and that the ecological value of the system will be diminished. 200. The construction of access roads to the ROW of the transmission line was not required except in some areas where the alignment is located far from the main road, as such, the alignment itself was used as the access road. Feeder roads were used as access roads for transporting construction materials to the ROW. This design consideration avoided forests and other vegetation. 201. In areas where patches of secondary forests such as the village holy forest and village cemeteries cannot be avoided, the vegetation were removed only at the ROW after approval from the Forest Clearing Committee (FCC), in collaboration with local village authorities and affected villagers. Detailed survey and inventory of trees were undertaken.

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202. The alignment also crossed and was more or less parallel and relatively located not more than 1.5 to 2 km from existing road to minimize the disruption caused by constructing lengthy access roads. No new roads were constructed except for small access tracks to facilitate movement of light tractors or pickup trucks to the tower sites.

B. AVOIDING SETTLEMENTS

203. As much as possible, the design of the ROW avoided settlements and removal of houses to prevent disruption of the community and social structure. From the final route alignment, there were 10 houses (9 houses in Nakhao Village and one at Khouay Deng Village). There was no other option but to properly compensate the owners of the property after due consultation. There are no other resettlements required by the project except for the acquisition of land occupied or used as rice paddy field, farmland or garden where the tower bases were permanently constructed.

C. AVOIDING CULTURAL AND HERITAGE SITES

204. Cultural and heritage sites were avoided during the construction of the transmission line to avoid impacts to cultural beliefs, way of life, and aesthetics. Some village temples are not cultural and heritage sites but are considered by the community as important cultural facilities of villagers and its removal may be culturally unacceptable and may result in hostility being directed towards the project. 205. According to the results of the field survey of the ROW, there was one village cemetery and temple area at Nakhao Village that cannot be avoided. The village cemetery including the crematory was compensated for the reconstruction of the crematory in another place.

D. DRAINAGE PATTERNS

206. The towers were built in areas with high elevation as much as possible to minimize the number of towers needed for the transmission line and to provide large clearance between overhead conductors and from growing vegetation. To reduce the potential of soil erosion into rivers, the side slope disturbance to build access tracks and locating towers in depressions were minimized.

E. OTHER UTILITIES AND TRAFFIC

207. The international safety standards for minimum clearance distances were adopted for high, medium, and low voltage conductors. Table 8 provides the summary of clearance distances used for the 500 kV transmission line.

Table 8: Safety Clearances to Live Conductors of 500 kV Transmission Line

Conductor To Specified Target Vertical Clearance Distance (m)

Rural area, uncultivated land 11.00

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Conductor To Specified Target Vertical Clearance Distance (m)

Major highway 14.50

Rail road track 16.00

230 kV line 6.00

115 kV and telecommunication lines 5.25

Distribution lines 69 kV and less 4.65

Shield wire of other lines 4.00

Buildings Not permitted

Navigable rivers 16.00

Horizontal Clearance Distance (m)

State / major highways 75.00

Rail roads 65.00

Country roads 55.00

Farm lane, dirt roads, cart tracks 25.00

Canals 20.00

Buildings 35.00

Transmission line 230 kV 50.00

Transmission and distribution lines 115 kV and less 40.00

Sources: IEE, 2007; Southeast Asia Energy, Ltd.

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VI. INFORMATION DISCLOSURE, CONSULTATION, AND PARTICIPATION

208. Public Consultation was initiated by EDL team in May/June 2007 for the substation and the transmission line from Na Bong to Thinthaen village. At the Nabong substation, EDL key informant interviews and consultations with the village authorities were carried out. The key participants to the consultation included the chiefs of the villages, representatives from the village mass organization including the Lao Women Union in each village, elderly, youth, and other affected villagers. The proposed project, transmission line alignment, and affected land were explained to the villagers and village authorities. 209. The participants basically agreed to the implementation of the project. Issues that were raised during the public consultations include their willingness to work during the construction of the project as laborers, proper compensation of affected land, and their desire to have access to electricity. 210. Based on the Decree on Compensation and Resettlement of Affected People, the Resettlement Action Plan was prepared in consultation with the affected persons. The stakeholders were informed about the likely impacts of the project and were consulted in conjunction with the Environmental Office of EDL. Separate focused discussion groups were held with men and women and with representatives from the various ethnic communities. During the meetings and consultations, the participants were provided with information materials about the project. The list of meeting in the villages is presented in Appendix 5. 211. Another project consultation meeting was organized on 22 June 2007 by EDL in Vientiane. The meeting was chaired by Mr. Soukanh Phongsavath, Head of Cabinet Office to the Ministry of Energy and Mines. Also in attendance during the meeting were Mr. Vilasack Nammounty, Deputy Head of Cabinet Office to Vientiane Capital, representative of the WREA, concerned village authorities and affected villagers. The objectives and progress of the project and the results of the recent Environmental and Social Study were presented. Appendix 6 presents the minutes of the Public Consultation. 212. Follow-up field visit was organized by EDL on 12 June 2008 and on 28-29 May 2009 at the Nabong substation and eight villages affected by the Nabong-Thinthaen transmission line. The activities carried out included the assessment of environmental and social impacts by the project within the Nabong substation and the transmission line areas including development of an HIV/AIDS prevention program. The draft proposal for the HIV/AIDS prevention program was prepared in August 2008 and cited in the Social Report. 213. The Social Report and Resettlement Action Plan were disclosed to the stakeholders and the District Level and were circulated in English and Lao to all relevant government sector. The plan outlines the methods for measurement of losses, asset valuation, entitlements, grievance procedures, and schedule of payments and displacement. The project affected people were ensured of their involvement through the Grievance Redress Committees that were established by the project. 214. The WREA issued an Environment Compliance Certificate for the Resettlement Action Plan of the Nabong-Thinthaen transmission line project on 06 September 2010 as shown in Appendix 7. The ECC calls for the compensation for paddy field, agricultural land, and other

42

types of impacted property based on the decree on Compensation and Resettlement No. 192/PM dated 7/7/2005, based on full consultation and agreement with affected people. 215. The project was required to submit quarterly reports on the implementation of the RAP to WREA, Science Technology and Environment Office (STEO) of Vientiane Capital and other concerned sectors.

43

VII. GRIEVANCE REDRESS MECHANISM 216. A Grievance Redress Mechanism was established to receive and facilitate resolution of affected people’s concerns, complaints, and grievances about the project, particularly on compensation policies. The grievance resolution of the project was established based on the provisions in Article 13 of the Decree on Compensation and Resettlement of People Affected by Development Projects and the Technical Guidelines on Compensation and Resettlement26. The Guidelines for Compensation of the proposed project was issued by Vientiane Capital on 26 September 2007. It outlines the agreed upon compensation costs for land, property, trees, and other structures affected by the project based on the consultations that were conducted with the affected villages. 217. There are still various issues that might be encountered by the affected people about the project’s environmental performance. A Grievance Redress Mechanism will address affected people’s concerns and complaints timely, using a transparent process that is consensus-driven, culturally appropriate, and readily accessible to all segments of the affected people.

A. GRIEVANCE FOCAL POINTS, REPORTING AND MONITORING

218. Complaints will be received through the village heads, the construction contractor, or the EDL-EO. The Grievance Focal Points will be designated at these levels to receive, help resolve, report or forward complaints received from affected people. The complainant or affected people may visit, call, or send a letter or fax to any Grievance Focal Points to register their complaints related to environmental issues or other aspects of the project. 219. The Grievance Focal Point at the EDL-EO will consolidate and maintain a record-book or register of complaints, and keep track of their status. The reports and complaints resolution will be monitored by the EDL-EO.

B. DISPUTE RESOLUTION PROCESS

220. The dispute resolution process will observe the following steps.

221. Step 1. Complaints received from the affected villagers will be forwarded and relayed to the EO of EDL or the construction contractor through the village heads. The EO will act on the complaint through site investigation and meeting with the complainant, together with the village head and authority, contractor, and District Sub-Committee which may be composed of a representative from either Forestry, Land, Environment Department, etc. from the District, depending on the nature of the complaint. The village head or the EO will give the complainant an answer within two weeks. When the complainant is satisfied, an agreement with EDL is signed for implementation.

222. A focal person of the EO will be designated to receive and follow-up all complaints received about the project. When the complainant is satisfied, an agreement with EDL is signed for implementation.

26

Footnote 1.

44

223. Step 2. If the complainant is still not satisfied with the solution, the complaint will be forwarded to the Grievance Committee which is chaired by the District Governor. A meeting will be called to discuss the complaint with the complainant, local village head, EDL and District sub-committee representative. The Grievance Committee will make a decision within two weeks. Majority of the cases are settled at this level.

224. Step 3. If the issue cannot be resolved at the Grievance Committee level, the complainant can make an appeal to the Project Environmental Management Committee (PEMC) which is composed of the representatives from the Vientiane Capital – Manager of Energy and Mines as Chair, Vientiane Capital –Cabinet, Provincial Water Resources and Environment Office (PWREO), Land Management Office, Forestry, and Security, EDL Manager of Technical Department, District Heads (Pakngum, Saythany, Hatsayfong), and village heads of the 9 affected villages.

225. Step 4. Issues which are not resolved at the PEMC level are elevated to the court for final resolution and settlement. 226. For construction related complaints, the contractor is asked to participate in the complaint resolution process. The EDL-EO likewise conducts follow-up and monitoring of the resolution of the complaint.

C. DISCLOSURE OF GRIEVANCE RESOLUTION PROCESS

227. Figure 6 presents the grievance redress process being adopted by EDL. The EDL-EO focal person shall conduct follow-up and report on a monthly basis all complaints, disputes or questions received about the project. The complaints resolution process will be disseminated through an agreement signed by EDL and the complainant and witnessed by village and district representatives.

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Figure 6. Grievance Redress Process

46

VIII. ENVIRONMENTAL MANAGEMENT PLAN

228. This chapter presents the mitigation measures are given within the corresponding EMP, environmental monitoring plan, and institutional arrangements.

A. MITIGATION PLAN

229. The construction and operation phase mitigation measures identified in Chapter 5 are summarized in Table 9, together with the schedule, estimated cost and responsible entity for implementation.

Table 9: Environmental Management Plan

Potential Environmental

Impact Mitigating Measures Schedule

Estimated Cost (US$)

Responsible Entity

PRE-CONSTRUCTION PHASE

Changes in topography

Study use of cut soil as fill materials in low-lying areas of the site. Identify site for disposal of residual cut soil, bushes and other vegetation Method Statements for cut/fill management, soil erosion control, disposal of materials will be required from contractor

Before contract signing

Part of design cost

EPC Engineering procurement and construction

Changes in hydrology and flooding

Design of appropriate drainage plan with provision for soil erosion control and temporary drainage measures during construction Careful scheduling of site clearing, excavation, and other earthwork activities during dry season.

Before contract signing

Part of design cost

EPC Engineering procurement and construction

Location of construction camp

Provision of adequate sanitation facilities (toilets with septic tank, water supply, etc.) as part of the overall plan for the construction camp

Before contract signing

Part of design cost

EPC Engineering procurement and construction

47

Potential Environmental

Impact Mitigating Measures Schedule

Estimated Cost (US$)

Responsible Entity

Environmentally Responsible Procurement

Contractual clauses will include implementation of environmental mitigation measures. Contractor will be required to present Method Statements including resources for mitigation measures.

Before contract signing

Part of design cost

EPC Engineering procurement and construction

Project Disclosure Meetings and consultations with community will be held to discuss the project design and any changes (if applicable)

Upon completion of detailed design

Operational requirement

EDL

CONSTRUCTION PHASE

Flora and Fauna

Cutting of Vegetation/Trees within substation site

Cut trees and bushes shall be disposed in areas permitted by Authorities concerned. Coordinate with the Forest Clearing Committee, District Forestry Unit to mark trees for felling. Develop a landscape management plan as compensation measure for the vegetation that will be removed from the site.

Before and during construction

Included in construction cost

Contractor

Loss of vegetation Identification and inventory of affected trees Landscaping of project site Conduct of tree planting activities in the watershed.

During construction

Included in design cost

EDL

Construction Wastes

Generation of wastes

Main waste will be vegetation debris at substation site. Excavated materials to be used as fill material.

Before and during construction

Included in construction cost

Contractor

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Potential Environmental

Impact Mitigating Measures Schedule

Estimated Cost (US$)

Responsible Entity

Residual cut soil and other construction debris will be disposed in an approved site by the village authorities. Packaging wastes from electrical equipment will be recycled or will be disposed of in local approved landfills. Steel parts of dismantled temporary transmission towers will be collected and stored as spare parts

Water Pollution

Erosion, sedimentation and flooding

Temporary drainage canal should be constructed to block flow of silt into the drainage system. Soil erosion devices such as silt traps should be installed. Temporary barriers and trenches should be constructed around the mounds of materials to abate spread of spoils through surface runoff. Scheduling of grading and clearing during the dry season. Cover and stabilize stockpile of topsoil.

To be implemented during before and during project construction. The mitigating measures to control soil runoff will be incorporated in the design and bid documents.

Included in construction cost

Contractor

Wastewater from the worker’s camps.

The worker’s camp should be provided with temporary toilet facilities with septic tanks.

To be implemented prior to start of project construction.

Included in construction cost

Contractor

Air Pollution

Generation of dust or particulate matter.

Water sprinkling of the gravel access road near communities should be done to reduce the occurrence of airborne

During project construction

Included in construction cost

Contractor

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Potential Environmental

Impact Mitigating Measures Schedule

Estimated Cost (US$)

Responsible Entity

dust particularly during dry and windy conditions.

Emissions from movement of heavy equipment and construction vehicles.

Regular maintenance of construction vehicles. Water sprinkling when road become dry and dusty.

During project construction.

Contractor

Noise and Vibration

Noise pollution from the operation of construction equipment

Simultaneous use of equipment should be checked. All heavy equipment will be checked and maintained to control noise. Noise generating construction work and deliveries will be scheduled during daytime hours. Guidelines will be issued on prohibition of construction work or deliveries at night.

To be implemented during project construction.

Included in construction cost

Contractor

Traffic Contractor should adhere to established practices of posting warning signs/advisories and managing traffic to protect public and its workers Require drivers to slow down and maintain speed of not more than 30kph when passing through built-up areas.

During project construction

Included in construction cost

Contractor

Occupational Health and safety

Increase in the incidence of diseases

Conduct training and orientation of workers on construction health and safety management. Require the wearing of PPEs by workers within the project site. Strictly require the

During construction

Included in construction cost

Contractor / EDL Safety and EO Contractor / EDL Safety

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Potential Environmental

Impact Mitigating Measures Schedule

Estimated Cost (US$)

Responsible Entity

contractor and its workers to follow construction health and safety program. Provide first-aid facilities for workers. All site workers will be accommodated in the provided construction camps unless they are recruited from nearby villages. The construction camp site and surrounding areas will be kept clean. Inspections of the camp sites will be carried out weekly. Adequate number of rubbish bins will be provided. Portable water supply and/or water tank will be provided for workers. All potable water supply sources and storage facilities will be secured. Regular collection of waste/rubbish at the camp to be taken to a managed waste disposal facility. Conduct seminar/workshop for community on health and safety during construction.

Contractor / EDL Safety Contractor Contractor / EDL Safety and EO Contractor / EDL Safety and EO Contractor / EDL Safety and EO EDL EO

Community Health and Safety

Emergency spills of materials, fires, accidents

Develop a Community Health and Safety Plan that integrates good international practice and recognized standards on community safety. Provide procedures for emergency response,

During construction

Included in construction cost

Contractor / EDL Safety and EO

51

Potential Environmental

Impact Mitigating Measures Schedule

Estimated Cost (US$)

Responsible Entity

communication systems and protocols, interaction with local and regional emergency and health authorities, provision of emergency equipment

Unauthorized entry by villagers into dangerous working areas

Fencing of entire construction area Posting of warning signs in English and Lao for better understanding of locals.

During construction

Included in construction cost

Contractor / EDL Safety and EO

Electro-magnetic field

Provision of safety clearance to live conductor.

To be implemented during construction period

Part of project design cost

EDL/ Contractor

OPERATIONAL PHASE

Flora and Fauna

Trimming of trees and bushes for maintenance of ROW

Herbicides shall not be used to control vegetation along ROW. Burning to clear and control vegetation along ROW will be prohibited. Local villagers living along routes of the TL will be invited to participate under contract to manually cut vegetation along ROW Plantation trees and crops higher than 3 m will not be allowed ROW checking and maintenance of ROW will be conducted every month. Conduct training on environmental performance monitoring with workers and community representatives

During project life

Operational requirement

EDL EO

Occupational

52

Potential Environmental

Impact Mitigating Measures Schedule

Estimated Cost (US$)

Responsible Entity

Health and Safety

Health and safety; injury to workers

Health and safety plan will be implemented by EDL throughout the operation phase. Conduct training/seminar on occupation health and safety Periodic health and safety training and practice drills Preparation of an Emergency Preparedness and Response Plan Restricting access to electrical equipment by workers only trained and certified to work on electrical equipment Provision of Personnel Protective Equipment (PPE) for workers, safety measures, personal safety devices, and other precautions

Part of the operations plan.

Operational requirement

PIC

Working in heights Testing of structural integrity prior to proceeding with the work Use of fall protection measures

Part of the operations plan.

Operational requirement

EDL

Worker exposure to EMF

Identification of potential exposure levels in the work area including surveys of exposure levels and establishment of safety zones Limit access to properly trained workers and those equipped with appropriate PPE when entering safety zones. Utilization of personal monitors during work activities

Part of the operations plan.

US$2,000 for monitoring devices

EDL

53

Potential Environmental

Impact Mitigating Measures Schedule

Estimated Cost (US$)

Responsible Entity

Posting of safety signages and warning signs.

Community Health and Safety

Provision of signs, barriers, and gates/posts surrounding transmission towers particularly in built-up areas Signboards (Danger Warning Signs) need to be put on every tower as well as on the conductors where crossing community centers, roads and rivers. Grounding of conducting objects such as fences or other metallic structures near power lines. Conduct orientation seminar on community health and safety programs

Part of the operations plan.

Operational requirement

EDL

Hazardous Waste Management

Provision of secondary spill containment for fuel storage facilities, areas around substation transformers, and at maintenance yard. Direct discharges contaminated with oil from spill bunds into oil-water separators. Implementation of approved disposal options for all waste transformer oil, equipment maintenance, residually contaminated soils, and scrap metal.

Part of the operations plan.

Operational requirement

EDL

Management and Control of Vegetation at Transmission line

Access already existing roads or tracks to reach the transmission lines Inform locals in advance through the village heads on the schedule of

Part of the operations plan.

Operational requirement

EDL

54

Potential Environmental

Impact Mitigating Measures Schedule

Estimated Cost (US$)

Responsible Entity

maintenance and trimming works Avoid encroachment into rice or crop land of villagers. Do not allow the use of herbicides and pesticides to control vegetation growth.

B. MONITORING PLAN

230. The actual implementation of the project will be managed by EDL. The EO is established for project monitoring and coordinating purposes. The EO will be responsible for implementation and monitoring of the Environmental Management Plan (EMP) and the Environmental Monitoring Plan (EMoP) as well as coordination with local authorities and the affected persons. The EO shall work closely with the contractor during the construction phase and will be the first contact on the ground directly for EDL and also to the PEMC. It shall receive all complaints and grievances arising in the course of the implementation of the EMP and the EMoP. 231. The proposed monitoring plan, duration and schedule and responsible entities to be involved in the monitoring and evaluation is shown in Table 10. The EMoP focuses on mitigation implementation compliance monitoring of the Environmental Office and the Safety Office of EDL.

Table 10: Environmental Monitoring Plan Parameter Location and

Method of Monitoring

Activities Monitoring Frequency

Responsibility

Construction Phase

Tree cutting and clearing of vegetation

Site inspection at substation

Monitor tree cutting activities

During site clearing

EDL EO in collaboration with MAF

Erosion and sedimentation

Site inspection at substation

Site inspection of excavation works, silt arising from exposed soil surface, condition of sedimentation ponds

Weekly monitor throughout construction period

EDP EO

Damage or nuisance to nearby areas

Site inspection at substation site

Monitor and inspect construction works especially impact to communities, creek, and irrigation canal.

Weekly throughout construction period

EDL EO

Impact to water, natural view and environment due

Workers’ camp sites

Inspection of worker camp site condition to check proper solid waste

Weekly EDL EO

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Parameter Location and Method of Monitoring

Activities Monitoring Frequency

Responsibility

to improper disposal of rubbish

disposal

Health and safety Substation construction

Review contractor/construction worker health and safety plan and training activities on health and safety

At least monthly review of contractor’s health and safety plan

EDL Safety and EO

Interference with road transportation infrastructure

Substation construction

Monitoring and inspect road condition and measures used to protect road and ensure public safety

Weekly, continuous throughout construction period

EDL EO

Dust Local road and village nearby where trucks pass through and construction sites

Monitor and inspect dust condition in areas that are sprayed with water. Conduct interviews with villagers on comments on dust pollution

Weekly, continuous throughout construction period

EDL EO

Noise Local road and village nearby where trucks pass through as well as at various construction sites

Monitor noise during delivery of materials is allowed only at daytime hours (7:00AM to 6:00PM) Conduct interviews with villagers on concerns about noise.

Weekly, continuous throughout construction period

EDL EO

Operation Phase

Trees and vegetation control

Along the TL ROW

Inspect the status of tree and vegetation growth that may damage or threaten the integrity of the TL.

Monthly EDL EO

Health and safety; injury to workers and villagers

Towers and tower bases

Inspect integrity of the towers in order to maintain and ensure good condition Inspect Warning Signs/Boards if placed well on towers and on the line where the TL crosses roads

Monthly EDL Safety and EO

Substation transformer insulating and cooling oil leaks that may contaminate

Substation site Inspection of leaks on transformer, cleanout, and disposal of any spilled insulating and cooling oils.

Weekly/Monthly EDL EO

56

Parameter Location and Method of Monitoring

Activities Monitoring Frequency

Responsibility

water courses or soil.

232. Reporting. Regular reporting on the implementation of mitigation measures and on monitoring activities during construction and operation phases of the project are required by ADB and WREA. Semi-annual monitoring reports are to be submitted to ADB during the construction phase and on an annual basis for a period of two years during the operational phase. Monitoring reports to WREA are to be submitted quarterly based on the requirements of the approved ECC of the project. Reporting is the responsibility of EDL. 233. Capacity Development of EDL. The EDL will make sure that the EO, Technical Department, Project Management Office and members of the PEMC are prepared to ensure that the staff and future contractors are capable of implementing the mitigating measures to address environmental impacts. The EDL will also develop a plan that will strengthen the environmental monitoring by EDL and PEMC. Training workshops will be conducted at least two weeks before commencement of construction works.

C. INSTITUTIONAL ARRANGEMENTS AND RESPONSIBILITIES 1. ORGANIZATIONAL STRUCTURE WITHIN EDL 234. The implementation of the project will be managed by EDL. The Technical Department and Transmission Department are the important units within EDL who will oversee the implementation of the environmental management and monitoring plans. Matters relating to environmental management, monitoring, and public disclosure and compensation are handled by the Environmental Office. All matters relating to the operation and maintenance of the substation and transmission line are handled by the Transmission Department. 235. The Environmental Office of EDL is already established for project monitoring and coordinating purposes. There are 26 personnel assigned to the EO which is headed by a Manager and assisted by a Deputy Manager. 236. For the Nabong substation and transmission line project, a Project Implementation Unit (PIU) will be established to coordinate activities of the EO and the Transmission Department as shown in Figure 7. There will be two sub-units to be established under the PIU composed of the Inspection Unit and the Environmental Management and Monitoring Unit (EMMU). The Inspection Unit will monitor project implementation of the EMP and EMoP while the EMMU will lead the implementation of programs related to the natural environment such as forest, land, and water management. The EMMU shall also review the environmental and social documents. The EMMU of the EO will also supervise implementation of social development programs, including resettlement and compensation plan and will work in close coordination with the community to act as bridge of the community to the company.

57

Figure 7. Organization Structure on Environmental Management

2. PROJECT ENVIRONMENTAL MANAGEMENT COMMITTEE (PEMC) 237. Other relevant agencies such as the WREA, MAF, DOE, Vientiane Capital, Districts, and villages shall be involved with the implementation of the EMP, EmoP and dispute resolution as members of the PEMC. 238. Figure 8 presents the composition of the PEMC while Table 11 outlines the roles and responsibilities of other institutions on the environmental management of the project. The PEMC consists of representatives from the different authorities concerned such as the Ministry of Energy and Mines, offices within Vientiane Capital such as Provincial Water Resources Environment Office (PWREO), Land Office, Industry and Commerce, Forestry, and Security. The District Heads of Pakngum, Saythany, and Hatsayfong as well as the village heads of the 9 affected villages are members of PEMC. The EDL is represented in the PEMC by the EDL Technical Department. 239. The PEMC was established based on the Decree of Vientiane Capital Governor No. 231/VC to decide on compensation conditions and in monitoring social and environmental aspects of the project.

58

Figure 8. Organizational Structure of the Project Environmental Management Committee (PEMC)

59

Table 11: Institutional Set-up and Responsibilities for Environmental and Social Tasks

Institution/Organization Participants Tasks

DOE and/or EDL Environment Department of DOE

EDL Project Implementation Unit (PIU)

Coordination with contractor and EDL and other stakeholders

EDL Environment Office Environmental Management Unit

Implementation of EMP, RAP, Monitoring plan

Supervision of environmental activities

Coordination with local authority and affected persons, data collection and reporting

Project Environmental Management Committee (PEMC)

Ministry of Energy and Mines

Vientiane Capital (Vice Cabinet, PWREO, Land Office, Industry and Commerce, Forestry, and Security)

Dep. General Manager of EDL

EDL Technical Committee (Manager)

Vice District Governor (Pak Ngum, Saythany, Hatsayfong)

Villages head men

Project consultation meetings

Monitoring, evaluate/review environmental plan and monitoring plan

Negotiating compensation unit costs, supervision and authorization of compensation payment

Forest Clearing Committee (sub PEMC)

EDL VTE (EO) and EMMU

Vientiane Capital/District Cabinets

Vientiane Capital Energy and Mines Dept

Vientiane Capital PWREO

Vientiane Capital/District Forestry Officer

Determination of timber value

Monitoring of clearing process

Provide guidance and authorization of timber sale and/or relocation, appoint contractor in timber handling activities.

Compensation Committee (sub PEMC)

EDL VTE (EO) and EMMU

Vientiane Capital/District cabinets

Vientiane Capital Energy and Mines Dept

Vientiane Capital Land Officer

Determination negotiation of value of land

Preparation of compensation guidelines

Monitoring of disbursement of compensation payments

Participation in Compensation Committee

Certification of transfer of land ownership

Payment of compensation with EDL

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Institution/Organization Participants Tasks

Grievance Committee (sub PEMC)

EDL VTE (EO) and EMMU

Vientiane capital/ District Cabinets

Vientiane Capital Energy and Mines Dept

Village Authority

Settlement of complaints about compensation payments and other issues about the project implementation

Resolution of discrepancies and conflicts.

3. INSTITUTIONAL CAPACITY BUILDING 240. Table 12 presents the proposed training and awareness programs designed to enhance the capacity of EDL and PEMC to effectively monitor environmental impacts and implement proposed environmental mitigating measures. The capacity enhancement program also aims to create awareness amongst workers and the public of the environmental mitigating measures and health and safety measures for the project. 241. The training and awareness programs include a general overview of environmental management as part of regulatory requirements and based on results of environmental impact assessment studies. A training program on environmental performance monitoring and establishing key performance indicators will be developed for easy reference and guidance by EDL and the PEMC. Training for workers and selected community members (village heads) will be held on the procedures and measures to address occupational and community health and safety during construction and operation of the project.

Table 12. Training and Awareness Programs

Topics Target Group Method Implementation

Schedule

Overview of Environmental Management - Principles of environmental

management - Environmental regulations - Environmental impact assessment - Identification of impacts and mitigating

measures

EO PEMC District representatives Village heads

Lectures and workshops

Before start of construction

Environmental Performance Monitoring - Basic features of EMP - Environmental monitoring parameters

and key indicators - Environmental due diligence

EO PEMC Contractor

Lectures and workshops

Before start of construction

Construction Health and Safety Management - Construction activities and impacts to

the environment - Environmentally sound methods of

construction - Pollution control practices - Construction camp site maintenance

EO EDL-Technical Department Contractor

Lectures and workshops

Before start of construction

Environmental Performance Monitoring during Construction

EO EDL-Technical

Lectures and workshops

Before start of construction

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Topics Target Group Method Implementation

Schedule

- Air, water, noise, soil management - Worker health and safety plan

Department Contractor

Environmental Performance Monitoring during Operation - Occupation and community health

and safety plan

EO EDL-Transmission & Substation Department

Lectures and workshops

Before start of operation

D. EMP BUDGET 242. The costs for many of the EMP and EMoP measures are part of engineering, construction, and procurement costs and are not included in the EMP budget. EMP costs are mainly included in the EPC package and PIC costs, based on 2 years of construction and 2 years of required monitoring by ADB SPS 2009 (Table 13). 243. The costs for implementing the mitigation measures during the construction phase of the project include the landscaping and planting of vegetation to compensate for the loss of vegetation at the substation and training and orientation of workers and community on health and safety management plan. 244. The EDL shall contract a Project Implementation Consultant for one person-month to conduct training on occupational health and safety and community health and safety/awareness. 245. During the operational phase, the cost of the EMP are also integrated in the operations cost of the substation and transmission line. Capacity building, field monitoring, and procurement of monitoring devices for the operational phase are also outlined.

Table 13. Estimated Budget for Environmental Management and Monitoring

Activity No. of

Persons No. of days

Unit (US$)

Total (US$)

Construction Phase

1. Site inspection 2 36

- Transportation 50 1,800.00

- Per diem 50 3,600.00

2. PEMC meetings and field inspections 21 15

- Transportation 100 1,500.00

- Per diem 60 18,900.00

3. Landscaping Plan, planting of vegetation and other trees

30,000.00

Operational Phase

1. Inspection and survey 2 Continuing 2,500/yr

2. Monitoring devices 20,000.00

3. Capacity building

Overview of environmental management 50 2 60 3,000.00

62

Activity No. of

Persons No. of days

Unit (US$)

Total (US$)

Environmental performance monitoring 50 2 60 3,000.00

Occupational health and safety 30 2 60 1,800.00

Community health, safety, and environmental awareness

50 2 60 3,000.00

Sub-Total 86,600.00

Contingencies (15%) 12,990.00

TOTAL 99,590.00

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IX. CONCLUSION AND RECOMMENDATION 246. The proposed expansion of the substation project will not have any considerable adverse impacts to the environment since the project activities will be limited within the 42 ha of land which is already acquired by EDL. The impacts of the project are site-specific, reversible and are confined within the property. The site is not an ecologically sensitive area and there are no settlements within the site. 247. Consultations with affected communities along the alignment of the transmission line and substation have been carried out by EDL team in May/June 2007 through interviews and meetings with villagers and village authorities. 248. A Grievance Redress Mechanism was established to receive and facilitate resolution of affected people’s concerns, complaints, and grievances about the project, particularly on compensation policies. The grievance resolution of the project was established based on the provisions in Article 13 of the Decree on Compensation and Resettlement of People Affected by Development Projects and the Technical Guidelines on Compensation and Resettlement. 249. Most of the adverse impacts are likely to occur during the construction phase and are considered as temporary in nature. The anticipated adverse environmental impacts are manageable and can be mitigated through proper design and consideration of the proposed mitigation measures. 250. The impacts during the construction of the substation are primarily due to the clearing of the site, cutting of existing vegetation, leveling of the ground, and are briefly described in the following paragraphs:

Permanent change in topography will occur because of the leveling of the expansion area to about the same elevation as the existing 230kV substation. The possible use of the cut soil as fill material for the low-lying areas within the 42ha land will be evaluated while disposal site for residual cut soil, together with bushes and other vegetation that will be removed from the site will be pre-identified prior to commencement of construction works by the contractor and EDL.

Flooding has been reported in villages, particularly near streams due to overflowing during intense precipitation. The design of the drainage plan will take into consideration the increased runoff and soil erosion from the site due to the clearing and development of the substation area. Engineering controls for erosion protection measures such as silt traps and sedimentation ponds will be planned.

There will be water pollution, sanitation, and health hazards due to presence of workers camp. Adequate water supply and toilet facilities will be established at the existing construction camp.

A construction health and safety plan shall be required from the contractor, including provision of first-aid facilities to provide measures and procedures in addressing occupational health and safety at the construction site.

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During the construction of the substation, the activities such as excavation and movement of construction vehicles along the access roads would contribute to the increase in ground level concentration of total suspended particulates (dust), noise, and could also result to accidents and hazards to communities living along the access roads. Measures such as water sprinkling on working surfaces and road during dry conditions, limiting of construction hours and deliveries to the site at night, and imposition of speed limit to vehicles will be implemented.

The planting of trees and shrubs through the development of a landscape management plan at substation site will be implemented as a compensation measure for the vegetation that was removed from the site. Inventory of affected trees shall be conducted by EDL.

The project construction will result to modest impacts associated with community health and safety such as construction traffic, transport of materials, fires, emergency spills of materials, and unauthorized entry by the villagers into dangerous working areas. A Community Health and Safety Plan (CHSP) that incorporates good international practice and recognized standards that includes fencing of construction area, posting of warning signs in English and Lao, emergency response and preparedness procedures, communication systems and protocols, interaction with local and regional emergency and health authorities, provision of emergency equipment and facilities such as fire truck, emergency service vehicles, and fire drills will be established.

251. During the operation of the project, issues include EMFs and management of hazardous wastes at the substation. With the implementation of good international practices, the impacts can be effectively mitigated. 252. The community and workers also needs protection against electrocution hazards as a result of contact with high voltage electricity through the provision of signs, barriers, and gates/posts surrounding the transmission towers, particularly in built-up areas. 253. Based on the analysis conducted in this assessment it is concluded that overall the project will result in significant positive socio-economic benefits, and those potential negative environmental impacts that have been identified are small-scale and localized, and can be minimized adequately through good design and the appropriate application of mitigation measures. It is therefore recommended that the project be supported by ADB, subject to the implementation of the commitments contained in the EMP and allocation of appropriate technical, financial and human resources by implementing agencies to ensure these commitments are effectively and expediently implemented.

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BIBLIOGRAPHY

Electricite du Laos. July 2007. Report on the Initial Environmental Examination (IEE) for the Nabong-Thinthaen 500 kV Transmission Line and Sub-station. Lao PDR Electricite du Laos. July 2007. Resettlement Action Plan (RAP) for the Nabong-Thinthaen 500 kV Transmission Line and Sub-station. Lao PDR International Finance Corporation. April 30, 2007. Environmental, Health, and Safety Guidelines Electric Power Transmission and Distribution. World Bank Group Unna Chokkalingam. November 2010. Design Options for a Forest Carbon Legal Framework for Lao PDR: Drawing Lessons from Across the Globe. FSIP-JICA/SIDA and GTZ-CliPAD Boungnakeo, Khamphachanh. Forest Law Enforcement and Governance in Lao PDR. Department of Forest Inspection, Ministry of Agriculture and Forestry. Lao PDR. GMS Lao Co., Ltd. December 2010. Environmental Impact Assessment Report of Nam Ngum 3 Hydropower Project. Lao PDR Asian Development Bank. June 2009. Safeguard Policy Statement. Manila Asian Development Bank. 04 March 2010. Operations Manila Bank Policies (BP) OM Section F1/BP. Safeguard Policy Statement. Manila Ministry of Industry and Handicrafts. Department of Electricity. 04 October 1991. Power Sector Environmental Policy. Lao PDR Ministry of Industry and Handicrafts. Department of Electricity. 12 June 2003. Environmental Management Standard for Electricity Projects. Lao PDR Ministry of Industry and Handicrafts. Department of Electricity. 04 October 2001. Environmental Management Plans for Electricity Projects. Lao PDR Ministry of Industry and Handicrafts. Department of Electricity. Environmental Impact Assessment for Electricity Projects No. 585/MIH/DOE. Lao PDR Ministry of Industry and Handicrafts. 20 November 2001. Regulation on Implementing Environmental Assessment for Electricity Projects in Lao PDR No. 447/MIH. Lao PDR Fichtner. 28 February 2009. Final Report Na Bong-Udon Thani 500 kV Power Transmission Project. Volume 2/5 Side Report No. 1 Environmental Issues. Asian Development Bank TA 7026-LAO Fichtner. 27 February 2009. Final Report Na Bong-Udon Thani 500 kV Power Transmission Project. Volume 3/5 Side Report No. 1 Social Issues. Asian Development Bank TA 7026-LAO ADB. Lao PDR Resident Mission. December 2007. Technical Assistance Report, Lao People’s Democratic Republic: Preparing the Na Bong-Udon Thani Power Transmission Project. Lao PDR.

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State of water environmental issues in Lao PDR, Water Environment Partnership in Asia, http://www.wepa-db.net/policies/state/laos/river.htm 1An assessment of environmental impacts of tourism in the Lower Mekong Basin, ISSN: 1683-1489, MRC Technical Paper No. 28, December 2010

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APPENDICES

1. Environmental Compliance Certificate for IEE 2. Environmental Categorization Form 3. Rapid Environmental Assessment Checklist 4. Acceptance of Property Compensation of the project issued by Vientiane Capital on 09

March 2011 5. List of consultation meetings with stakeholders 6. Minutes of Public Consultation Meeting 7. Environmental Compliance Certificate for RAP 8. Due diligence report on existing 230kV Nabong substation and 500kV transmission line 9. Photographs of the site

Appendix 1: Environmental Compliance Certificate (ECC) for IEE

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Translation of ECC

LAO PEOPLE’S DEMOCRATIC REPLUBLIC PEACE INDEPENDENCE DEMOCRATIC UNITY PROSPERITY

===== 000 ===== Prime Ministry Office No. 306/PM-WREA Water Resources and Environment Administration Vientiane capital, date 16, Oct 2007

CERTIFICATE

- Pursuant accordance with Environmental Protection Law, No. 02/99/NA, dated

3rd April 1999.

- Pursuant with Decree of Prime minister for the Organization and Role of Water

Resources Administration No. 149/PM dated 10 May 2007.

- Pursuant Implement Environmental Impact Assessment No. 1770/STEA-PM

dated 03/10/2000.

- Pursuant equal from Environmental of Department No. 553/WREA-ESIA, dated

9/10/2007.

Water Resources and Environment Administration (WREA) agreed to Environment Impact Assessment Report (IEE) for Transmission line 500 KV Nabong to Thinthaen Project (Lao-Thai border), issues July 2007. However, developer has to implement project with the following conditions:

1. Strictly implement all the measures that specified in environment and protection environment plan, In case of environment issues happen and did not include in the report. The Project owner must responsible for those additional and provide enough budgets to solve those problems.

2. During construction period, Project owner should especially pay attend to collect all waste, oil, dust, install of warning signs. For ROW clearing of the transmission line route should follow and apply technical specification and minimize of the environment impacts.

3. After construct completed, Project owner must repair and restore the area that

has been affected from construction works to good conditions and can be use by

affected people.

4. Submit quarterly report on environment monitoring to WREA, Science

Technology and Environment Office (STEO) of Vientiane Capital and concerned

sectors for they acknowledgement and follow up of the project. Authorized to

Science Technology and Environment Office (STEO) of Vientiane Capital

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incorporation with concerned authority and district authorities to monitor

implementation environmental and social management plan of 500 KV Nabong-

Thinthaen (Lao-Thai Border) Transmission Line and Substation Project.

This ECC can be used for 2 years and can be extended based on results of EMP implementation follow up of the Project.

This certificate is effective from the signing date

Minister to the Prime Minister’s Office

Head of Water Resources and Environment Administration

Sealed and Signed

Khempang PHOLSENA

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Appendix 2: Environmental Categorization Form

ENVIRONMENT CATEGORIZATION

Date:12 May 2011

A. Instructions (i) The project team completes and submits the form to the Environment and Safeguards Division (RSES) for endorsement by RSES Director, and for approval by the Chief Compliance Officer (CCO). OM F1/OP on Safeguard Review Procedures (paras. 4-7) provides the requirements on environment categorization. (ii) The classification of a project is a continuing process. If there is a change in the project components or/and site that may result in category change, the Sector Division submits a new form and requests for recategorization, and endorsement by RSES Director and by the CCO. The old form is attached for reference. (iii) In addition, the project team may propose in the comments section that the project is highly complex and sensitive (HCS), for approval by the CCO. HCS projects are a subset of category A projects that ADB deems to be highly risky or contentious or involve serious and multidimensional and generally interrelated potential social and/or environmental impacts.

B. Project Data Country/Project No./Project Title

: Nabong – Udon Thani Power Transmission Project

Department/ Division : Southeast Asia Department / Energy Division

Processing Stage :

Modality : [ x ] Project Loan [ ] Program Loan [ ] Financial Intermediary [ ] General Corporate Finance [ ] Sector Loan [ ] MFF [ ] Emergency Assistance [ ] Grant [ ] Other financing modalities:

C. Environment Category (please tick one category based on the set of criteria in OMF1 (paras. 6-7)) [ x ] New [ ] Recategorization ― Previous Category [ ]

II. Category A

Category B

Category C

Category FI

D. Basis for Categorization/ Recategorization (please. attach supporting documents): [ x ] REA Checklist [ x ] Project and/or Site Description

[ ] Other: __________________________

E. Comments Project Team Comments

RSES Comments

F. Approval Proposed by:

Endorsed by:

Project Team Leader, {Department/Division} Director, RSES

Date: Date:

Approved by:

Endorsed by:

Highly Complex and Sensitive Project

Director, {Division} Chief Compliance Officer

Date: Date:

X

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Appendix 3: Rapid Environmental Assessment Checklist

Instructions: (i) The project team completes this checklist to support the environmental classification of a project. It

is to be attached to the environmental categorization form and submitted to Environment and Safeguards Division (RSES) for endorsement by Director, RSES and for approval by the Chief Compliance Officer.

(ii) This checklist focuses on environmental issues and concerns. To ensure that social dimensions are

adequately considered, refer also to ADB's (a) checklists on involuntary resettlement and Indigenous Peoples; (b) poverty reduction handbook; (c) staff guide to consultation and participation; and (d) gender checklists.

(iii) Answer the questions assuming the “without mitigation” case. The purpose is to identify potential

impacts. Use the “remarks” section to discuss any anticipated mitigation measures.

Country/Project Title: Sector Division:

Screening Questions Yes No Remarks

A. PROJECT SITING IS THE PROJECT AREA ADJACENT TO OR WITHIN ANY OF THE FOLLOWING ENVIRONMENTALLY SENSITIVE AREAS?

X

CULTURAL HERITAGE SITE X The temple where the crematorium was located was compensated. The crematorium was transferred to another site.

PROTECTED AREA X

WETLAND X

MANGROVE X

ESTUARINE X

BUFFER ZONE OF PROTECTED AREA X

SPECIAL AREA FOR PROTECTING BIODIVERSITY

X

B. POTENTIAL ENVIRONMENTAL IMPACTS WILL THE PROJECT CAUSE…

encroachment on historical/cultural areas, disfiguration of landscape and increased waste generation?

X

encroachment on precious ecosystem (e.g. sensitive or

protected areas)?

X

alteration of surface water hydrology of waterways crossed by roads and resulting in increased sediment in streams affected by increased soil erosion at the construction site?

X This will be avoided or minimized through proper implementation of appropriate mitigating measures.

500 kV Nabong-Udon Thani Substation and Transmission Line

Energy Division

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Screening Questions Yes No Remarks

damage to sensitive coastal/marine habitats by construction of submarine cables?

X

deterioration of surface water quality due to silt runoff, sanitary wastes from worker-based camps and chemicals used in construction?

X This will be avoided or minimized through proper implementation of mitigating measures.

increased local air pollution due to rock crushing, cutting and filling?

X This will be avoided or minimized through proper implementation of mitigating measures.

risks and vulnerabilities related to occupational health and safety due to physical, chemical, biological, and radiological hazards during project construction and operation?

X This will be avoided or minimized through proper implementation of mitigating measures.

chemical pollution resulting from chemical clearing of vegetation for construction site?

X No herbicides will be used during the construction phase.

noise and vibration due to blasting and other civil works?

X Minor noise impacts will occur during movement of construction vehicles along access road.

dislocation or involuntary resettlement of people?

X Compensation was completed. There are no settlements at the site of the proposed substation expansion.

disproportionate impacts on the poor, women and children, Indigenous Peoples or other vulnerable groups?

X

social conflicts relating to inconveniences in living conditions where construction interferes with pre-existing roads?

X

hazardous driving conditions where construction interferes with pre-existing roads?

X

creation of temporary breeding habitats for vectors of disease such as mosquitoes and rodents?

X

dislocation and compulsory resettlement of people living in right-of-way of the power transmission lines?

X Compensation was completed.

environmental disturbances associated with the maintenance of lines (e.g. routine control of vegetative height under the lines)?

X Minor disturbance.

facilitation of access to protected areas in case corridors traverse protected areas?

X

disturbances (e.g. noise and chemical pollutants) if herbicides are used to control vegetative height?

X

large population influx during project construction and operation that cause increased burden on social infrastructure and services (such as water supply and sanitation systems)?

X

social conflicts if workers from other regions or countries are hired?

X

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Screening Questions Yes No Remarks

poor sanitation and solid waste disposal in construction camps and work sites, and possible transmission of communicable diseases from workers to local populations?

X Contractors are required to provide adequate sanitation facilities

risks to community safety associated with maintenance of lines and related facilities?

X

community health hazards due to electromagnetic fields, land subsidence, lowered groundwater table, and salinization?

X Low frequency EMF

risks to community health and safety due to the transport, storage, and use and/or disposal of materials such as explosives, fuel and other chemicals during construction and operation?

X

community safety risks due to both accidental and natural hazards, especially where the structural elements or components of the project (e.g., high voltage wires, and transmission towers and lines ) are accessible to members of the affected community or where their failure could result in injury to the community throughout project construction, operation and decommissioning?

X Safety and warning signs are necessary

Climate Change and Disaster Risk Questions

The following questions are not for environmental categorization. They are included in this checklist to help identify potential climate and disaster risks.

Yes No Remarks

Is the Project area subject to hazards such as earthquakes, floods, landslides, tropical cyclone winds, storm surges, tsunami or volcanic eruptions and climate changes (see Appendix I)?

X

Could changes in precipitation, temperature, salinity, or extreme events over the Project lifespan affect its sustainability or cost?

X

Are there any demographic or socio-economic aspects of the Project area that are already vulnerable (e.g. high incidence of marginalized populations, rural-urban migrants, illegal settlements, ethnic minorities, women or children)?

X

Could the Project potentially increase the climate or disaster vulnerability of the surrounding area (e.g., increasing traffic or housing in areas that will be more prone to flooding, by encouraging settlement in earthquake zones)?

X

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Appendix 4: Acceptance of Completed Property Compensation of the project issued by Vientiane Capital on 09 March 2011

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Appendix 5: List of Consultation Meetings

Date Time Village/District No. of Participants

Chair Person (Village Chiefs)

Remarks

8/5/2007 11:00 Hatxaifong 3 Mr. Vienrakhom District Committee

9/5/2007 10:00 Thin Thaen 20 Oun Norana Including APs

10/5/2007 9:30 Khouay Deng 37 Ou Thong Khamphivong

Including APs

13/5/2007 9:30 Sim Ma No 43 Salong Keoduangdy

Including APs

15/5/2007 14:00 Xaythany 4 Mr. Phomma District Committee

14/5/2007 9:00 Bo Lek 25 Mr. Khamkieng Including APs

15/5/2007 10:00 Dong Khouay 18 Mr. Khampoune Including APs

15/5/2007 9:00 Na Khao 28 Mr. Boun Nao Including APs

15/5/2007 11:00 Pakngum 3 Mr. Somlong District Committee

16/5/2007 10:30 Houa Na 6 Boun Nhou Including APs

16/5/2007 9:00 Phon Kham 12 Mr. Chim Including APs

17/5/2007 10:00 Nabong 7 Singkham Inthachack

Including APs

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Appendix 6: Minutes of Public Consultation Meeting

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81

82

83

84

85

86

Minutes of Meeting on Presentation of the 500 kV Nabong to

Khouaydaeng (Thinthaen) IEE and RAP on 22 June 2007 at Vientiane

Administration Office Meeting Room.

Meeting of full participation of project environmental management committee member of

500 kV Transmission line and substation Nabong-Khouaydeang (Thinthaen) was organized at

8:45 of 22/06/2007 at Meeting room of Vientiane administration office. The meeting chaired by

Mr. Sukan PHONGSAVATH, head cabinet office, Ministry of Energy and Mines and also

Chairman of Project Environmental Management Committee (PEMC) other participants are also

from PEMC member, representative of Department of Electricity, Science, Technology and

Environment Agency (STEA), EDL, SEAN, relevant local administration, representative of

village and effective people name of participants are attachment here. After meeting is opened.

Ms. Lattana PRATHUMVANH, Deputy Director of Generation and projects Department,

representative of EDL Managing Director reported to meeting about project objective and project

progress. Later Mr. Vilaphorn VISONNARATH and Project consultant presented results and

progress of environment and social of project, expected project benefit and impact of project,

mitigation measures to the impact, compensation standards, and main issues and concerned of

the affective of the people to the meeting for further discussion, improvement and find out

solution together. The meeting was extensively discussion and exchange of the opinions and

could be summarized as following:

1. Mr. Vilasack NAMMONTRY, Deputy Cabinet of Vientiane Capital, Vice Chairman of

PEMC is emphasized on project objective and project benefit which he call on for

cooperation of all villages in development of this project, this will be part of country

development, he was also recommend that government should give a favors to the one

that contribution with this development.

2. Mr. Phouvong, project affective people request for a fair compensation to be paid.

3. Mr. Kongsi, project affective people request for a fair compensation and should be best

on consultation with the affective people. During consultation period, project has to

inform owner in advance.

4. Mr. Sapong, village chief of Simmano request project construction work shall be

conducted before rice production period this is to avoid the impact.

5. Mr. Vongdeuane BOUNYASENG, Deputy District governor of Pakngum District request

project to compensate for the fee of the COSMO Company that affected from concession

land in Nabong area. There are also some cast on land survey and tree plantation that paid

by COSMO company.

6. Mr. Khamphoun SIVONGSA, village chief of Dongkhoay in from meeting that some

field huts are missing from data collection

7. Mr. Oun NOLANA, village chief of Thinthaen recommend to change project name from

Nabong-Khougdaeng to Nabong-Thinthaen because project is located at Thinthaen

village not Khoaydaeng village.

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8. Mr. Khamkiang, village chief of Borlek proposed compensation rate should be equal and

the same for all project area.

9. Mr. Keosangkhom PHONMASENG, representative from STEA, recommend:

­ For compensation should be according to decree 192/PMO, dated 7/7/2005 on

compensation and resettlement of people affective by development projects.

­ project should collaborate with local authority to further provide public consultation

on compensation rate.

­ For the Lao word that use in the report should use the same term in existing regulation

for example: compensation, resettlement wording.

­ For IEE & RAP report, project developer shall submit to deportment of Electricity first

for endorsement and then send to STEA for approval.

All question, comments and recommendation are well explained by project developer and project

adviser to participant. Some issues will be incorporated in to IEE&RAP report.

Basically, meeting agreed with IEE report where most of the contents are fulfilled and will be no

need for further EIA study.

Finally, Mr. Sukan PHONGSAVATH is further answered to the meeting for some clarification

to participants. He advised to project developer and related person to take all comments and

issues to further study and implement as appropriated.

Meeting is close in the same day on 11:50 h.

For Chairman Note taker

Sealed & Signed Signed

Vilasack Nammonty Mr. Vilaphorn VISONNARATH

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Name list of Participants

No. Name and Surname Position Signature Phone Remarks

A

1 Mr. Soukan PHONGSAVATH MEM head official 9980174

2 Mr. Vilasack NARNMONTY Vientiane official Deputy 22880773

3 Mr. Daophet AROUN WERA official

4 Mr. Kounkeo PHUNSAWAT Industrial and trade deputy

55614205

5 Mr. Vila PANGKHEUB Vientiane land management

22213522

6 MS. Khampiew LARMUNGKOUN

Forestry deputy 77709942

B

1 Mr. Pouvieng BOUNSILI Xaythany district deputy 56599199

2 Mr. Khanthaly PHANEEVONG Hatsayphong district deputy

2206960

3 Mr. Vongdeun BOUNYASEANG

Pakngum district deputy 9807077

4 Mr. Phunto Seangphet NAVONG

To defense the peace deputy

55146957

C

1 Mr. Sisavath THIRAVONG EDL deputy

2 Ms. Lattana PATOUMVAN Generation and project 2205084 representative

3 Mr. Thongphet DOUNGNGEUN

Technical Dept

4 Mr. Vilaphone VISONUNARATH

EO office 5715319

5 Representative DOE 2001709

6 Representative Wrea 5421730

7 Mr. Keovongsouk SULIYARDEAT

coordinator 451519-177

8 Mr. Sompouvieng NORLIN South GMS Deputy

9 EO,edl staff

10 Wrea Staff 911423

11 Surasit MANADEE SEAN 7517198

12 Khamphuy JIRARARUENSAK SEAN 5012950

13 Charun SAKUNTHAVORN SEAN

14 Mr. Seethon DAOPHASIT Office deputy 911432

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No. Name and Surname Head of village

D 2005230

1 Mr. OUN NORLANAR Tintane 9701809

2 Mr. Outhong KHAMPIVONG Kuaydeng 760837

3 Mr. Salong Simmano Nue 9832784

4 Mr. Chansao Simmano Tay 2410290

5 Mr. Khampoun Dongkuay 2408736

6 MS. Khamkieng Boleck

7 Mr. Bounnow Nakao 5422117

8 Mr. Bouhu Huana

9 Mr. Lung SOUVANDY Phonekham

10 Mr. Singkham INTHASUK Nabong 5810723

F Impact people

1 Mr. Seethon ( KHIYDENG) Ban Tintane

2 Mr. Thoun Ban Tintane

3 Ms. Sup Ban Kuaydeng

4 Ms. Vieng DOUNGPIM Ban Kuaydeng

5 Mr. Khamouy (Ms. Sarlee) Ban Simmano Tay

6 Mr. Sompone Ban Simmano Tay

7 Mr. Oudong Ban Simmano Tay

8 Mr. Jarnlien Ban Simmano Tay

9 Mr. Portu Vee Ban Simmano Tay

10 Mr. Portu Oui Ban Simmano Tay

11 Mr. Poukoun Ban Simmano Tay

12 Mr. Somboun(Noy) Ban Nakao

13 Mr. Peung Ban Nakao

14 Mr. Bounheung Ban Nakao

15 Mr. Bounnark Ban Nakao 7870688

16 Mr. Lerd Ban Nakao

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Appendix 7: Environmental Compliance Certificate (ECC) for RAP

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Translation for RAP Certificate

LAO PEOPLE’S DEMOCRATIC REPLUBLIC PEACE INDEPENDENCE DEMOCRATIC UNITY PROSPERITY

===== 000 ===== Prime Ministry Office No. 306/PO-WREA Water Resource and Environment Administration Vientiane capital, date 06, September 2010

CERTIFICATE

- Pursuant to Environmental Protection Law, No. 02/99/NA, dated 3rd April 1999.

- Pursuant to the Decree on Compensation and Resettlement of Development

Project No. 192/PM issued by Prime Minister of the Lao Peoples Democratic

Republic dated 7 July 2005.

- Referred to Implementing Decree on Compensation and Resettlement of People

Affected by Development Project Area, No. 2432/STEA-PM, dated 3 March

2005.

- Referred to Decree of Prime minister for the Organization and Role of Water

Resources Administration No. 149/PM dated 10 May 2007.

- Based on requite of Environmental Department No. 553/WREA.DO, dated 9 Oct

2007.

Water Resources and Environment Administration (WREA)

agreed to issue Environment Compliance Certificate for Resettlement Action Plan (RAP) of Nabong-Thinthaen (Lao-Thai border) Transmission line 500 kV project, dated

July 2007.

Whereas Project Developer has to implement project with the following conditions:

1. Strictly implement all the measures that specified in Resettlement Action Plan (RAP), In case of social issues happen and did not include in the report. The Project owner must responsible for those additional and provide enough budgets to solve those problems.

2. Compensation for Paddy field, Agriculture land and others type of impacted must

be based on decree on Compensation and Resettlement No. 192/PM dated

7/7/2005 which should be based on fully consultation and agreement with

affected people.

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3. Submit quarterly report on implementation of RAP monitoring to WREA, Science

Technology and Environment Office (STEO) of Vientiane Capital and concerned

sectors for they acknowledgement and follow up of the project. Authorized to

Science Technology and Environment Office (STEO) of Vientiane Capital

incorporation with concerned authority and district authorities to monitor

implementation Resettlement Action Plan of 500 KV Nabong-Thinthaen (Lao-

Thai Border) Transmission Line and Substation Project.

This Certificate can be used 2 years and can be extended based on results of follow up of implementation for Resettlement Action Plan of the Project.

This certificate is effective from the signing date

Minister to the Prime Minister’s Office

Head of Water Resources and Environment Administration

Sealed and Signed

Khempeng PHOLSENA

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Appendix 8: Due Diligence Report on existing 230kV Nabong Substation and 500kV Transmission Line

Introduction The due diligence of the 230kV substation and 500kV transmission line was conducted to assess the environmental performance and compliance with environmental regulations and safeguards of the existing facilities. The due diligence was conducted from 12 – 20 May 2011. The consultant was guided by several approaches in conducting the assessment. These included the use of ADB’s Safeguards Policy Statement, 2009, and a review the project’s compliance with the commitments outlined in the previous Initial Environmental Examination (IEE) reports dated 2007 and 2009. Review of environmental monitoring reports and documents, interviews with technical personnel, and on-site inspection of facilities was conducted. The existing project has sustained its satisfactory performance in environmental management, as supported by the continuously improved environmental management plan and documentation of their monitoring program. The company’s interaction and partnership with the community, and their programs to ensure environmental protection have been satisfactorily carried out as well. The 230kV substation is located in Nabong Village, Pakngum District while the 500kV transmission line runs from Nabong substation to Thin Thinthaen Village at the Mekong River where it meets the transmission line from EGAT. The substation site occupies a total area of about 42-hectares. The 230kV substation and 500kV transmission was commissioned on 06 July 2010 to export power to the grid in Udon-Thani in Thailand. The project was constructed by Nam Ngum 2 Power Company Limited under an IPP scheme with the Government of Lao PDR. The project is being operated by Electricite du Laos (EDL). Methodology The audit covered the period 12 – 20 May 2011. In the conduct of the due diligence audit, the consultant was tasked to perform the following functions: - Describe the current environmental management practices of the EDL. - Determine and assess EDL’s level of compliance to the commitments stipulated in its IEE - Determine and assess EDL’s level of compliance to relevant environmental policies, rules,

and regulations - Propose new environmental management strategies deemed necessary and appropriate for

EDL.

An Environmental Compliance Certificate (ECC) was issued to the project by the Water Resources and Environment Agency (WREA). Since the issuance of the ECC, the monthly and quarterly monitoring has been conducted by EDL’s Environmental Office (EO) with respect to various environmental regulatory criteria, guidelines, and agreements.

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The first phase of the due diligence audit proper included a site visit and corresponding interview with key personnel of EDL. The site inspection allowed the consultant to observe the environmental site conditions, environmental management practices and identify areas of compliance. This process was also used in validating information gathered during the document review. The second phase of the audit involved a review of documents from EDL against the set criteria/standards and environmental requirements. The consultant identified areas of compliance or non-compliance after reviewing EDL’s management and monitoring plans and results of periodic monitoring activities. Legal Framework The report is based on the following ADB policies and guidelines as criteria: - Safeguard Policy Statement, 2009 - Environmental Assessment Guidelines, 2003 - Operations Manual Bank Policies (BP) OM section F1/BP issued on 25 September 2006.

The relevant legislation in Lao PDR which were considered in preparing this report are: - Environmental Protection Law No. 02/99/NA (1999) - Law on Forestry and Decree No. 04/PM, 14 January 2008 - Land Law No. 13NA-2005 - The Electricity Law, 1997 - Water Resources Law, 1996 - PM Decree No. 102/PM on Implementation of the Environmental Protection Law, 2001 - Regulation on Environmental Assessment No. 697, 12 March 2010 - Regulation on Environmental Assessment No. 1770/STEA dated 3/10/2000 - Regulation on Implementing EA for Electricity Projects No. 447/MIH. 20 November 2001 - National Policy on Environmental and Social Sustainability of the Hydropower Sector in Lao

PDR No. 561/CPI-2005.

Project Description The project consists of the Nabong substation and the Nabong-Udon Thani 500 kV transmission line. NN2PC built the substation and transmission line inorder to export 230kV power to Thailand. It was also planned that the future operation of Nam Ngum 3, Nam Ngiep 1, and Nam Theun 1 will also evacuate energy to Thailand through the Nabong substation at a 500kV level. It is envisioned that with the project the following objectives will be met: - Increase export of energy - Reduce import of energy which is estimated to be 6,290GWh or US$32 million from 2006 to

2020 - Develop a comprehensive national and regional transmission network (Grid), forming a

fundamental framework for government power policy on regional electricity expansion. Therefore, the project is expected to provide a direct contribution to the implementation of government poverty eradication program as well as policy aiming to give Lao PDR with the status of becoming the central power distributor for the neighboring countries.

The project includes: - 27 km 500 kV transmission line from Nabong substation in Lao PDR to the Thai border and - 500/230kV Nabong substation.

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The transmission line is designed as a double circuit line. Despite the fact that power will be initially evacuated only on a 230kV level, there will be no construction activities such as stringing of new conductors along the transmission line right-of-way that will be necessary for the when the power is transformed up to 500kV. The temporary 230kV transmission line will be removed when the 500kV substation is ready to operate. Construction activities will take place at the 42ha substation site for the installation of new equipment for the additional switchyard and substation area. The EDL has already prepared the IEE and a Resettlement Action Plan (RAP) in July 2007 for the Nabong substation and the associated 230kv/500kV transmission lines to the border in Udon-Thani. These reports were submitted for review and evaluation of the WREA and other government agencies which led to the approval of the ECC for the project.

Figure 1: Location Map

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Present Status of the Project During the field visit in May 2011, the 230kV substation and 500kV transmission line are already operational. The substation is monitored through the control room building of the Nabong substation. The site of the substation is already fenced while an operator house was already built about 200 meters from the perimeter of the existing substation. There is also a construction camp about 100 meters from the substation fence. The said construction camp was used during the construction of the substation. The camp is provided with toilet facilities and water supply tanks. The following presents the status of compliance of the project with the EMP:

Issue Mitigating Measure Status of Implementation

I. Design and Construction Phases

Forest and bushes clearing along TL ROW

Trees and bushes clearing shall be disposed to areas permitted by Authorities concerned

No herbicides will be used to control vegetation along ROW

Burning to clear and control vegetation along ROW is also prohibited

No high commercial tree species, however, before ROW clearing, the detail survey by Forest Clearing Committee, District Forestry Unit and land owners to list and mark big tress or commercial tree species ( if any) for felling is needed

Logging and logs selling process will be based on the laws and regulations concerned and conducted by Authorities concerned.

Permit was issued by Vientiane Province.

No herbicides are being applied.

No burning is being allowed.

Vientiane Province Authority conducted the survey

Compensation plan was developed and approved by Vientiane Capital

Improper disposal of construction debris and wastes

Main waste will be vegetation debris from substation site and TL ROW clearances ; debris will be stacked outside area of the ROW and burning off shall not be permitted; wherever possible and where safety is assured, villagers will be permitted to remove vegetation such as bamboo and small trees, that have an economic or practical value; packaging wastes from electrical equipment will be recycled wherever possible (making them accessible to villages, otherwise it will be disposed of in local approved landfills).

Cut trees were removed by villagers A disposal site of excavated materials was used by the contactor during the construction of the transmission line.

Site worker camps and other All site workers will be A construction camp was set-

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Issue Mitigating Measure Status of Implementation

facilities accommodated in the provided camps. No other accommodation of workers will be permitted

Temporary site worker camps will be location along the proposed road ROW only. No worker camps will be permitted outside the provided areas or near to the watercourse or streams which can cause impact on water (water pollution).

The camp sites and surrounds will be kept in a tidy and clean manner, inspections of the camp sites will be carried out weekly. Adequate number of rubbish bins for general litters and rubbish.

Portable water supply and/or water tank need to be provided to worker. All portable water supply and storage facilities will be secured.

Regular waste/rubbish collection will be part of the camp requirements that needs to be done and this must be taken to a managed waste disposal facility.

up close to the substation site and also along the ROW. The camp close to the tower was removed when the foundations works were completed. The construction camp at the substation is provided with water supply, temporary toilets, and solid waste bins.

Construction of Access Road and Steel Towers, including transportation of all Materials

Construction must be carried out during dry (non-farming) season; temporary access paths will be decommissioned once construction completed; compensation paid to affected people for any disruption to assets an or production activities.

Provide proper drainage system in harmony with natural drain.

Disposed off sump oil properly, avoid washed down of oil into water bodies.

Transportation of material is allowed only in daytime ( from 7:00AM to 6:00PM)

Contractor should adhere to its established practices of posting warning signs and managing traffic to protect the travelling public and its workers.

Yes, as per agreement with the villagers. In cases where the ROW traversed paddy land, trees, and houses, compensation was made in accordance with the approved guidelines of Vientiane Capital.

Dust emission Water spraying in dry and windy conditions on the local road where the trucks pass through

Spraying was reportedly done by the contractor

Noise ( civil works) Daytime working from (7:00AM to 6:00PM), avoiding exceeding the

Construction hours were limited during nighttime.

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Issue Mitigating Measure Status of Implementation

noise limit especially in nighttime. Nighttime, in principle, means from 9:00PM to 6:00AM. Principally, working will not be allowed at nighttime

Interference with other infrastructure during and transportation of material

Contractor should adhere to its established practices of posting warning signs and managing traffic to protect the travelling public and its workers

In the event that stringing conductor presents a possible risk to the houses, community center, and to traffic on public roads or rivers, bamboo scaffolds will be constructed across the roads and rivers to protect pedestrians, vehicles, boats ( and the conductor itself) from potential injury/damage during conductor stringing

In case of overweight material during transportation, it may be necessary to temporarily reinforce some of the weaker roads and/or bridges.

There was one case in Sim Ma No Village where the movement of vehicles damaged a bridge. The contractor repaired the bridge.

Health and safety; injury and sickness of workers and members of the public

Contractor will be required to develop a health and safety plan; workers will be subjected to health screening and health and safety training sessions will be provided; public health education will be part of the SEAN/EDL project plan

Necessary safety tools such as helmets, working shoes, ear protection, dust filter and others are needed to provided for the site workers.

The contractor was required to prepare the health and safety plan.

Encroachment into farmland, loss of agricultural land and productivities (Approximately 3,100m

2 of rice paddy field and

total 500m2 of swidden and

farmland are permanently required for construction of 36 tower bases and sub-station

Affected farmers/villagers will be properly compensated

Consultation with APs will be conducted by PEMC.

The proposed formula for calculation of compensation cost can be applied and consultation with affected villagers is also needed.

(According to the Formula , for the Permanent Loss; compensation cost for 1 m

2 of

land for Paddy Filed is about 9,200 kips and for other farmland

Affected farmland were compensated by EDL in accordance with the approved guidelines of Vientiane Capital.

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Issue Mitigating Measure Status of Implementation

is about 3,100 Kips will be paid to affected persons according to the area losses.)

Encroachment into industrial tree plantation areas, loss of planted trees ( Approximately 6.14 ha of plantation area and 5.05 ha of farmland are also needed for clearing along the alignment including construction of towers

Affected farmers/investors will be properly compensated

Consultation with APs will be conducted by PEMC

The proposed formula for calculation of compensation cost can be applied and consultation with APs is also needed.

(According to the Formula, for calculating compensation cost for permanent loss and temporary loss of plantation and planted trees

It was estimated that about US $600-800 per hectare investment cost for Eucalyptus and Teak and US $800 to US $1,000 per ha for rubber and Agarwood plantation. All plantations were compensated.

Historical, cultural and archeological property. Encroachment into village properties such as cemetery ( one village where the tower will be located and also TL will traverse through)

In case of any historical, cultural, archeological asset is encountered during excavation, the excavation work shall be stopped and the provincial culture and touring Directorate shall be informed thereof. The work will carry on after reaching an agreement.

Sitting the TL and Tower away from such areas, if unavoidable by way of alignment position, sitting of tower should be located outside i.e. at each end. If relocation is required the traditional protocol and spiritual rituals must be observed and followed. (compensation must be paid in order for villagers to conduct traditional of spiritual ceremony).

A village crematory in the temple area in Na Khao village in Xaythany District was traversed by the ROW if the transmission line. The traditional protocol and spiritual rituals were observed and followed by EDL prior to construction of the transmission line. Compensation was made to the temple for the relocation of the crematory.

Encroachment into Temple at Nabong, Phonkham and Nakhao villages.

Negotiation will be carried out and proper Compensation to the village will be paid properly (as it was firstly agreed during the field survey and discussion at about 8,000,000 kip for each cemetery loss). As in case of the TL just traverse through two temples at two villages, compensation will not be necessary.

Electro-magnetic field Safety Clearance to Live Conductor for 230 kV and 500 kV; minimum clearance distance (meter), see Tables 5.1.7a and 5.1.7b

The design of the substation and transmission line took into account the prescribed safety clearance.

II Operation Maintenance Phase

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Issue Mitigating Measure Status of Implementation

Forest and bushes clearing for maintenance of ROW and ROW checking

No herbicides will be used to control vegetation along ROW

Burning to clear and control vegetation along ROW is also prohibited

Rather, local villagers living along routes will be participated under contract to manually cut vegetation along rights-of-way

Plantation trees and crops with higher that 3 meters will not be allowed

ROW checking and maintenance if ROW should be conducted at least once or twice a year

Use of herbicides is not allowed.

Burning is not allowed to prevent damage to TL

Villagers are allowed to cut and gather wood along ROW especially is trees are already higher than 3m.

Monthly ROW checking is being done of EDL personnel.

Health and safety; injury to villagers

Health and safety plan will be implemented by SEAN/EDL throughout operation phase of project, including periodic health and safety training and practice drills.

Sign boards (Dangerous Warning Signs) need to put on every tower as well as on the conductors where crossing community centers, roads and rivers.

EDL has a safety office that issues guidelines on health and safety

Signboards and warning needs are needed in the TL.

Inadequate environmental and socio monitoring

SEAN and EDL Environmental Management Unit to be responsible for monitoring environmental and social aspects of project during operations and maintenance activities; SEAN/EDL will provide training to substation and transmission lines crews, involvement of local villages in operation and maintenance will be of great socio benefit-employment, etc..

EDL-EO is responsible for environmental and social monitoring.

Encroachment into farmland, paddy field; rice, crops and other agricultural produces will be damaged

Maintenance of TL especially where the TL located in the paddy field or farmlands, should be conducted in the dry season or non-farming season in order to avoid damage to crops and other agricultural produces

Continuing activity

Conclusions and Recommendations The due diligence of the 230kV Nabong substation and 500kV transmission line found that the Environmental Management and Monitoring Plan had been developed and presented in the IEE

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which was submitted to WREA. After review and evaluation by WREA and other government agencies, an ECC was approved for the project on 16 October 2007. Public consultation meetings with the affected community were conducted by EDL in May/June 2007 through interviews and meetings with villagers and village authorities to present the proposed project. On 22 June 2007, another project consultation meeting was organized in Vientiane chaired by Mr. Soukanh Phongsavath, Head of Ministry of Energy and Mines. The meeting was also attended by representatives from the WREA, concerned village authorities, and affected villagers. The results of the environmental and social study of the project were presented during the meeting. A Grievance Redress Mechanism was developed primarily for the compensation of affected families and properties. The grievance resolution of the project was established based on the provisions in Article 13 of the Decree on Compensation and Resettlement of People Affected by Development Projects and the Technical Guidelines on Compensation and Resettlement. The Guidelines for Compensation of the proposed project was issued by Vientiane Capital on 26 September 2007 which outlines the agreed upon compensation costs for land, property, trees, and other structures affected by the project based on the consultations that were conducted with the affected villages. Compensation for the affected families has been made and that safeguards are in compliance with the policies of ADB and the Government of Lao. Vientiene Capital issued its acceptance of the property compensation of the impacted people by the project on 09 March 2011. When the project becomes fully operational, there are still various issues that might be encountered by the affected people. In order to resolve these concerns effectively and timely, a Grievance Redress Mechanism for complaints needs to be established. All grievances related to any aspect of the project should be handled through consultations to enable the resolution of the issue through consensus.

Currently, the Environmental Office (EO) within EDL is responsible for the implementation of mitigation, compensation, and monitoring measures during the construction and operation of the project. The EO prepared the monthly and quarterly environmental monitoring reports during the construction of substation and transmission line. These monitoring reports were then submitted to WREA through the project contractor. The results of the due diligence review show that the national and ADB requirements regarding an EIA and the implementation of the EMP and EMoP are fulfilled by the project. The IEE prepared by EDL in 2007 and the IEE prepared by Fichtner in 2009 already presents useful environmental impact assessment information which could be integrated into an upgraded IEE. There is supplementary information which could be retrieved from various sources to update environmental information and to comply with ADB’s SPS 2009.

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Appendix 9. Photographs of the site

Photo 1. Transmission line crossing at Road 13.

Photo 2: Control panel at substation

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Photo 3: Stockyard at existing substation and proposed site of 500kV switchyard in

background

Photo 4: Site of the proposed 500kV switchyard

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Photo 5: The existing substation facilities

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Photo 6: The existing construction camp

Photo 7: Water supply facilities at the construction camp.

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Photo 8: The existing operator house.

Photo 9: Site of the proposed expansion of the substation. Note the vegetation and

excavated soil to be removed to level the project site.