Initial Environmental Examination

INITIAL ENVIRONMENTAL EXAMINATION

AND

ENVIRONMENTAL MANAGEMENT PLAN

FOR

GREATER MEKONG SUB-REGION POWER TRADE PROJECT

Ban Hat in Champasak Province (Laos) to Stung Treng (Cambodia)

December 2010

Ministry of Industry, Mines and Energy Korea Electric Power Corporation

Initial Environmental Examination

Table of Contents

Pages
I / INTRODUCTION / 1
1.1  Background / 1
1.2 Purpose of the report / 1
1.3 Extend of the report / 1
1.4 Legal and policy framework / 2
1.4.1 Cambodia Environment Assessment Requirement / 2
1.4.2 World Bank Operational Policy / 2
1.4.3 Relevant Agreements / 3
II / DESCRIPTION OF THE PROJECT / 4
2.1 Project areas / 4
2.2 Scope of the project / 4
2.3 Amount of land required for construction / 4
2.4 Transmission line route / 6
2.5 Transmission line design / 9
2.6 Tree clearance / 10
2.7 Conductor selection / 11
2.8 Substation design / 11
III / PROJECT IMPLEMENTATION / 12
3.1 Pre-construction activities / 12
3.2 Construction / 12
3.3 Operation and maintenance / 13
IV / DESCRIPTIN OF THE ENVIRONMENT / 14
4.1 PHYSICAL RESOURCES / 14
4.1.1 Topography and drainage / 14
4.1.2 Climate / 14
4.1.3 Geology and soils / 15
4.2 Biological resources / 15
4.2.1 Flora / 15
4.2.2 Fauna / 16
A.  Mammal / 16
B.  Birds / 16
4.2.3 The Ramsar Site in Stung Treng / 19
4.3 Socio-economic conditions / 23
4.3.1 Administration / 23
4.3.2 Population and settlement pattern / 24
4.3.3 Land tenure / 25
4.3.4 Land Use Change / 27
A.  Economic Land Concession / 27
B.  Social Land Concession / 28
C.  Agricultural Activities / 29
4.3.5 Local economy and household characteristics / 29
4.3.7 Transportation and Communication / 30
4.3.7 Historical and religious sites / 31
V / ENVIRONMENTAL IMPACT AND MITIGATION MEASURES / 33
5.1 Land acquisition and land use change / 34
5.2 Land restriction / 34
5.3 Crop and land disturbance / 35
5.4 Soil erosion / 36
5.5 Water quality and soil contamination / 37
5.6 Noise and air quality / 38
5.7 Loss of tree resources / 38
5.8 Habitat loss / 39
5.9 Resettlement / 40
5.10 Health and safety / 40
A.  Labor force / 40
B.  Construction Hazards / 41
5.11 Historic, cultural and religious sites / 42
5.12 Negative impact in construction and maintenance state / 42
5.12.1 Electrocution / 42
5.12.2 Radio and TV interferences / 43
5.12.3 Flight deaths and electrocution / 43
A.  Birds / 43
B.  Mammals / 44
5.13. Positive environmental impact / 45
5.13.1 Social and Economic benefit / 45
5.13.2 Reduce air pollution / 46
VI / ENVIRONMENTAL MANAGEMENT PLAN / 47
6.1 Environmental management plan / 47
6.2 EMP Monitoring / 48
6.3 Environmental Management Responsibilities / 56
VII / CONCLUSIONS / 59
7.1 Public consultation / 59
7.2 Methodology / 59
7.3 Participant / 62
7.4 Public Consultation meeting (main point discussion) / 62
7.5 Main discussion and conclusions / 62
VIII / EMP BUDGET AND FINANCING / 63
List of Annexes / 64
Annex 1: list of people consulted / 65
Annex 2: Photo activities of the consultation team and persons consulted / 69
Annex 3: List of Official letters / 72

List of Tables and Figures

List of Tables / Page
Table 2.1: Transmission Line Design Features / 9
Table 4.1: Climate Data for Stung Treng Province (2005) / 16
Table 4.2 Reported Occurrence of Mammals in or Near the Ramsar Site / 17
Table 4.3 Key Cambodian Bird Species Found in or Near the Ramsar Site / 20
Table 4.4 main occupation per sector in Stung Treng 2009 / 24
Table 4.5 Land Use Classification / 28
Table 4.6: List of economic land concession in Stung Treng (up to 15 September 2009) / 28
Table 4.7 Estimated rice balance based on actual cultivated in 2009 / 30
Table 5.1: Impact Matrix of Environmental Impact and Mitigation / 32
Table5.2: Estimated Land Acquisition / 34
Table:5.3: Demography in the Affected Villages / 41
Table 6.1: Environmental Mitigation Plan / 48
Figure 6.2: Organizational chart of project implementation / 59
Table 8.1: Compensation cost estimated for PAP / 64

List of Figures

Page
Figure 2.1: : Existing proposed Transmission Line from Laos border to Stung Treng / 4
Figure 2.1 Proposed updated transmission line to 230 kv / 7
Figure 2.3: Project areas with IP and alternative line / 8
Figure 2.5: Compare similar 230 kV Towers / 9
Figure 2.6: Tree Clearance along the ROW / 10
Figure 2.7: Resettlement Clearance (ROW) / 11
Figure 4.1: Lower Island Area Locations / 22
Figure 4.2: Upper Island Area Location / 23
Figure 4.3: Population by district/municipal / 24
Figure 4.4 Percentage of four major occupations in each district, Stung Treng province / 26
Figure 6.1 Organizational chart of project implementation / 58
Figure 7.1 List of photo activities consulted / 60

Acronyms

APs / Affected Person/People
ASEAN / Association of Southeast Asian Nations
ASL / Above Sea Level
CBD / Convention on Biological Diversity
EAC / Electricity Authority of Cambodia
EdC / Electricity de Cambodia
EIA / Environmental Impact Assessment
EMF / Electrical and Magnetic Field
EMP / Environmental Management Plan
GHG / Greenhouse Gas
GMS / Greater Mekong Sub-Region
HFO / Heavy Fuel Oil
IEC / International Electro-technical Committee
IEE / Initial Environmental Examination
IEIA / Initial Environmental Impact Assessment
IMO / Independent Monitoring Organization
IPP / Independent Power Producer
IRC / Inter-ministerial Resettlement Committee
ISO / International Standards Organization
LDO / Light Diesel Oil
MEF / Ministry of Economy and Finance
MIME / Ministry of Industry, Mines and Energy
MOE / Ministry of Environment
NR / National Road
PAC/F/H / People Affected Communities/Families/Households
PIC / Project Implementation Consultant
PMO / Project Management Office
RPEC / Resettlement Plan/Environmental Coordinator
ROW / Right of Way
RP / Resettlement Plan
UXO / Unexploded Ordinance

Units/measurement

mm / Millimeter
km / Kilometer
sq / Square-millimeter
V / Volt
kV / Kilovolt (1,000 volts)
A / Ampere (Coulomb/second)
kA / Kilo Ampere
W / Watt (Joule/second)
kW / Kilowatt (1,000 W)
MW / Megawatt (1,000 kW)
GW / Gigawatt (1,000MW)
Wh / Watt-hour
kWh / Kilowatt-hour (1,000 Wh)
MWh / Megawatt-hour (1,000 kWh)
GWh / Gigawatt-hour (1,000 MWh)
VA / Volt-Ampere
kVA / Kilovolt-Ampere (1,000 VA)
MVA / Megavolt-Ampere (1,000 KVA)


NOTES OF CHANGES

(Between December 2006 IEE and this UPDATED IEE)

REFERENCE / New / Explanation
EXECUTIVE SUMMARY / 230 KV in Stung Treng Only / Updated statistics in Stung Treng
1.  Introduction to project Background / Updated / Removed reference to Kampong Cham and 115kV transmission line
2.  Description of the project
From 2.1. Project Area to 2.9. Substation Design / New / Transmission line routes are new and substation is at a new site. Only Samaki is valid. The 230 kV line crosses Ou Svay, Sdau, Kamphun communes. It also crosses Se Kong and Se San rivers. All new maps have been replaced.
3.  Project implementation / Update / Change some key figures
4.  Description of Environment / Update / More information are added such as bird in proposed new site, land tenure, land use change and completely new for economic land and social land concession, socio economic data
5.  Environmental Impact and Mitigation measure / Update / New data added
6.  Environmental Management Plan / Update / Revised some key figures
7.  Conclusions / Update / Additional data from public consultation in 2010 are added. The old data move to annex part.
8.  EMP Budget and Financing / Update / This is based on social impact section
Appendix
9.  Public consultation in 2006 / Update / This move to annex
10.  List of key informants and activities during visit in Sept 2010 / New / List of people meets and consulted and place visited have been updated and put into annex
11.  List of Official Letters / No update / No update


EXECUTIVE SUMMARY

The Transmission Line Project is part of the Greater Mekong Sub-region (GMS) Power Trade Project that will be made possible through the financial assistance of the World Bank. This project will provide a reliable supply of electricity to Stung Treng Province and other neighboring provinces in the future.

A 230kV double circuit transmission line is to be constructed by Electricité Du Cambodge (EDC). This transmission line will extend 46.7km, along the west side of NR No. 7 from Laotian Border, passing through four communes in three districts and Se Kong and Se Sen Rivers. It reaches a substation in Kamphun, in Se San District and about 14Km from Stung Treng town.

The settlement and land use pattern along the proposed route is primarily rural composed of villages of between 30 households, and far away from urban settlement. The local economy is characterized by rural production and provision of basic goods and services. The primary occupation among the Affected Persons (APs) is farming (all of AP respondents) with rice as the main source of income.

The Korean Electric Power Corporation (KEPCO) formulated in 2006 a Resettlement Action Plan (RAP) covering two 115kV lines for the relocation of households and other structures and land use restrictions within the Transmission Line Right of Way (ROW) and to identify impacts on the affected population and to provide proper compensation. A detailed survey of the final route will be carried out to finalize and peg the transmission line centerline, ROW, and tower locations to identify the people affected by construction and substation sites, and to inform APs what aspects and what extent of their physical and non-physical assets are affected. This expected to occur sometime in 2011.

Built upon the work of the Social and Business Khmer Research and Development (SBK) in 2006, socioeconomic surveys of affected persons (APs) at proposed Substation site, as well as its Resettlement Cost Study, the EDC and local consultants conducted a survey to update the costs of resettlement compensation as part of this updated RAP to ensure that the rates reflect accurate replacement costs for losses at current market value. These are independent and objective studies in the current Feasibility Study Phase of the Project to determine value of land, structures, perennial and annual crops, and other non-land based income (e.g., businesses, fishponds). This maximizes the economic and social benefits of the investment. These rates will be updated by a professional asset value during the Detailed Design Phase when final compensation rates acceptable to both APs and the Government.

The mitigation of impacts during construction will be based on selection of construction techniques and machinery that function with a minimum of ground disturbance. Construction activities on crop land will be timed to avoid the disturbance of field crops within one month of harvest wherever possible.

An ongoing process of information exchange through community participation of affected villagers and venders with agriculture specialists, contractors and builders, and officials of the Ministry of Agriculture, Forestry and Fishery facilitates the work of agencies and stakeholders involved and reduces potential conflicts, minimizes risks of project delays, enables a comprehensive development program design of resettlement and rehabilitation that prioritizes the needs of the affected villagers.

An Income Restoration Strategy has been developed if effects or losses on land, houses, structures, crops, trees, and communal properties cannot be avoided. APs will be compensated in cash or in kind at replacement cost to maintain or improve their livelihood and socioeconomic foundation. Severely affected farmers losing 20% or more of total productive landholding and vulnerable groups will be entitled to other rehabilitation assistance, including extension and technical assistance to improve productivity on remaining land or to develop alternative livelihoods.

Lack of formal legal rights to land does not prevent APs from receiving compensation and rehabilitation assistance. Those APs in possession of user's rights or any form of written or verbal agreements with Provincial, District, or Commune authorities to utilize the land are entitled to compensation and assistance. Tenants are also entitled to compensation and assistance.

Rehabilitation assistance will be provided to those requiring relocation and to recover social and economic networks to pre-project levels or better. A Housing Relocation Allowance and Transportation Allowance will be provided to relocating APs to enable the transport of affected households' building materials and other affected properties to new sites. A cash payment of US$40 is per house. A Cost of Disruption Allowance in the amount of US$40 will be paid to every relocating household and households severely affected by loss of 10% or more of productive, income-generating assets.

Special Assistance for Socially or Economically Vulnerable Households such as the very poor, households headed by the aged, women, and the disabled, as well as ethnic minorities will be provided so they may improve their socio-economic conditions based on identified needs and priorities. This includes assistance for landless households to obtain land, assistance to the poor to improve their housing, as well as skills training to learn a trade.

Total updated estimated cost of implementation of the RP is US$ 153,671.70 including all entitlements, implementation, contingencies, and Incremental Administrative Costs. The incremental costs of administration related to the preparation and implementation of the RP including External Monitoring are estimated at 20% of the total resettlement cost or US$19,701.50. The total costs of compensation for the Project including a 30% contingency are estimated at US$133,970.20.

The revied IEE and EMP is an attempt to identify the number of local residents affected by the project, the nature and degree of impact on them, measures taken to minimize the effects and compensation, and other assistance to be delivered to affected people for unavoidable impacts. Some key potential impact includes bird flying areas at the new proposed sub-station and rural infrastructure such as road which could not accommodate heavy trucks during construction and post construction.

Ministry of Industry, Mines and Energy viii Korea Electric Power Corporation

Initial Environmental Examination

I. Introduction

1.1.  Background

With financial support from World Bank, EdC has launched the construction project of one transmission line from the Laos Border to Stung Treng. This project is a part of the Greater Mekong Sub-region (GMS) Power Project. As clearly defined by the Ministry of Environment, the project is going to be carried out with environmental sustainability of the affected areas along the ROW.