Danang Priority Infrastructure Investment Project Environmental Assessment Report

Danang Priority Infrastructure Investment Project Executive Summary Environmental Assessment

TABLE OF CONTENTS

1 Introduction 3

1.1 Purpose of the Executive Summary 3

1.2 Project background 3

2 Project objectives and description 3

2.1 Project development objectives 3

2.2 Project components and phasing 3

2.3 Phasing of environmental impact assessment (EIA) 5

3 Environmental impact assessment process 5

4 Environmental setting 7

4.1 Socio-economic setting 7

4.2 Natural conditions at project areas 7

5 Analysis of alternatives 8

6 Environmental impacts 9

6.1 Impacts on cultural property 10

7 Community and stakeholder consultation 10

7.1 Recommendations of ward-level Peoples’ Committees and Fatherland Front 10

7.2 Recommendations of affected people 11

7.3 Public disclosure 11

8 Environment Management Plan (EMP) 11

8.1 Implementation of EMP 12

8.2 Mitigation measures 11

8.3 Environment monitoring plan 13

8.4 Participation of communities in Environment Management Plan 14

8.5 Capacity building 14

8.6 Budget Requirements for environmental management, mitigation and monitoring 14

9 Summary of Environmental Guidelines (EG) for Phase 2 15

9.1 Specific guidelines 15

1  Introduction

1.1  Purpose of the Executive Summary

This document is an Executive Summary of the multi-volume Environmental Assessment (EA) report for the Danang Priority Infrastructure Investment Project (PIIP). The Executive Summary has been prepared to meet requirements of both the Government of Vietnam (GoV) and the World Bank as part of the project preparation process. Resettlement issues are addressed separately in a Resettlement Policy Framework and Resettlement Action Plans.

1.2  Project background

Danang is the centre of politics, economy, and culture in Central Vietnam and an important gateway to the sea for the central highland areas as well as for Laos, Cambodia, and Thailand. It has a total area of 1,256.54 km2 and by the end of 2005, had a population of 781,023 residents.

The city faces challenges in ensuring productive employment and basic services for new residents (both migrants and internal population growth); dealing with a legacy of under-investment in infrastructure; mitigating the risk of environmental degradation and traffic congestion; and better operation of industrial zones. The city is growing rapidly but the current situation of environmental sanitation is poor. There are major problems with pollution (particularly Phu-Loc River) and poor sanitation and drainage, especially in low-income communities. Pollution is affecting human health and flooding and wastewater disposal problems are posing significant challenges to further urban growth.

The Danang Priority Infrastructure Investment Project (PIIP) was approved through the decision No. 31/QD-TTg dated 10/01/2007 of the Prime Minister. Funds were requested from the World Bank for the period 2007-2010 for an IDA amount expected to be about 100,000,000 USD (subsequently increased to 150,000,000 USD). The project is an interdisciplinary infrastructure investment activity to reduce poverty and promote economic development in accordance with the city’s development orientation as well as its Comprehensive Poverty Reduction and Growth Strategy (CPRGS).

2  Project objectives and description

2.1  Project development objectives

The project development objectives are: “The project aims to improve the efficiency, effectiveness and sustainability of urban services under the control of Danang City through a package of priority investments including urban upgrading, environmental improvement and strategic road access, as well as measures for institutional strengthening in the areas of investment planning, and the management of land and housing.”

2.2  Project components and phasing

·  Component A: Urban Upgrading (Upgrading of Tertiary Infrastructure in Low Income Areas - LIAs) – This component will help upgrade tertiary infrastructure for low-income areas and provide resettlement housing and micro-credit for housing improvements.

·  Component B: Environmental Management – This component will invest in improving environmental conditions, including flood control, construction of drainage trunks, wastewater collection, and wastewater treatment works.

Components and Phasing of the Project

COMPONENT / PHASE 1 / PHASE 2 / TOTAL
A / Component A / 19,070,740 / 40,934,213 / 60,004,953
1 / Works / 11,671,263 / 11,315,356 / 22,986,619
a / Upgrading 4 LIAs / 2,441,417
b / Three Resettlement Areas (RAs) / 9,229,846
c / Upgrading 10 nrs LIA / 11,315,356
2 / Works Related / 6,234,860 / 16,184,000 / 22,414,660
a / Housing Improvements / 1,000,000 / 1,000,000
b / Resettlement - Compensation / 4,888,860 / 16,000,000 / 20,888,860
c / Environmental Management Plan / 41,800 / 134,000 / 175,800
d / Public Disclosures and Promotional / 300,000 / 50,000 / 350,000
3 / Consultancy / 1,168,817 / 13,434,857 / 14,603,674
a / EIA and RAP Phase 2 / 200,000 / 200,000
b / Detailed Design Phase 2 - Component A, B and C / 4,680,000 / 4,680,000
c / Construction Supervision - Component A, B and C / 1,168,817 / 8,364,857 / 9,533,674
d / Technical Studies / 190,000 / 190,000
B / Component B / 10,399,948 / 50,753,166 / 61,153,114
1 / Works / 8,673,294 / 48,105,192 / 56,778,486
a / External Drainage and Water Supply to LIAs / 685,615 / 2,517,075 / 3,202,690
b / Phu Loc River Improvements / 7,987,679 / 7,987,679
c / Phu Loc River Outlet Sand Deposition / 0 / 1,500,125 / 1,500,125
d / Primary Drainage Improvements / 6,791,643 / 6,791,643
e / Wastewater System Expansion and Rehabilitation / 22,362,279 / 22,362,279
f / Wastewater Treatment and Disposal - NW and S / 14,934,070 / 14,934,070
2 / Goods / 550,000 / 0 / 550,000
a / Sewer Cleansing Equipment / 550,000 / 550,000
3 / Works Related / 1,176,654 / 2,647,974 / 3,824,628
a / Resettlement - Compensation / 1,176,654 / 2,647,974 / 3,824,628
C / Component C / 100,000 / 89,720,474 / 89,820,474
1 / Works / 84,602,474 / 84,602,474
a / Nguyen Tri Phuong Road and Bridges / 59,120,974 / 59,120,974
b / Danang South Road and Bridge / 25,481,500 / 25,481,500
2 / Works Related / 100,000 / 5,118,000 / 5,218,000
a / Resettlement - Compensation / 4,848,000 / 4,848,000
b / Mine Clearance / 100,000 / 270,000 / 370,000
D / Component D / 3,814,500 / 350,000 / 4,164,500
1 / Pilot GIS Establishment / 485,000 / 0 / 485,000
2 / Techncial Assistance / 739,500 / 739,500
3 / Training / 430,000 / 430,000
4 / Equipment / 395,000 / 395,000
5 / Study Tours / 165,000 / 165,000
6 / City Master Plan 2027 / 1,000,000 / 1,000,000
7 / Audit and Monitoring / 600,000 / 350,000 / 950,000
TOTAL / 33,385,188 / 181,757,853 / 215,143,041
Project Management Costs 1.5% / 500,778 / 2,726,368 / 3,227,146
GRAND TOTAL / 33,885,966 / 184,484,220 / 218,370,187

·  Component C: Roads and Bridges for Economic Development – This component will provide new roads to enhance economic growth.

·  Component D: Institutional Development - This Component will enhance the efficiency of the City’s departments and sectors in the implementation of the Socio-Economic Development Plan, period 2006 – 2010.

The Project is divided into two phases. Phase 1 consists of planned first year investments and Phase 2 are those that will follow in the remaining four years of the project. Detailed phasing of the project is presented in the table below. A map of the project area is presented below the table that also shows the major investments under Phase 1.

2.3  Phasing of environmental impact assessment (EIA)

The environmental impact assessment for this project was also accordingly divided into two phases. A full environmental assessment (EA) report has been carried out for all the activities planned for the first year (Phase 1). Detailed environmental guidelines have been prepared for the environmental assessments to be carried out for the Phase 2 activities. These EAs will be carried out as part of the process of preparing detailed investment designs. This Executive Summary reports on both the Phase 1 EA and the Environmental Guidelines for Phase 2.

3  Environmental impact assessment process

The EA of the Project was prepared according to the Vietnamese Law on Environmental Protection 2005, Decree No. 80/ND-CP dated Aug 9, 2007, and in compliance with World Bank safeguard policies. The Constitution of Vietnam states that state-owned enterprises, governmental agencies, cooperatives and national defense units must take full responsibility for implementation of policies which ensure reasonable use of the country’s natural resources and environmental preservation.

A summary of the most pertinent national laws governing environmental management includes, but is not limited to the following:

·  Law on Environmental Protection dated 29 Nov. 2005.

·  Decree No. 80/2006/ND-CP dated 9 Aug. 2006 on detailed regulation and implementation guidance for some clauses of Law on Environmental Protection.

·  Circular No. 08/2006/TT-BTNMT dated 8 Sep. 2006 on guidance on strategic environmental assessment, environmental impacts assessment and commitment to environmental protection.

·  Decree No. 91/2002 (Nov. 11, 2002) on the Mandate, Organization and Functions of MONRE.

·  Decision No. 45/QD-TTg (April. 2, 2003) on establishing provincial Department of Natural Resources and Environment (DONRE).

·  MONRE Decision No. 35 / 2002 / QD-BKHCNMT on standards to be applied during the preparation of an Environmental Assessment (EA).

Map of project area and major investments under Phase 1

4  Environmental setting

4.1  Socio-economic setting

The population of Danang City in 2005 was estimated at 790,191 people, of which the total male population was 384,806 people and the total female population 405,385. The rate of population growth in the city in 2005 was 2.35%, of which the rate of the natural population growth is approximately 1.18%, the remainder resulting from strong migration to the urban area.

According to socio-economic surveys in the project area, workers constitute 25.5% of the population, small business employees 26.4%, and 21.2% are government civil servants. The others earn their living in fishing and agricultural productions or undefined jobs. Unemployment rate is 8.4%.

Based on those surveys, 23.3% of the total households surveyed are considered poor according to the standard of Ministry of Labor, Invalids and Social Affair. The average income per capital is about VND 472,000 per month. In comparison with similarly-sized Vietnamese cities, the income level is relatively low.

4.2  Natural conditions at project areas

Danang has a typical tropical monsoon climate with annual average temperature above 250C and annual average humidity 82%. There are two obvious seasons in Danang including a rainy season from August to December and a dry season from January to July. Tidal regime of Danang Sea is a diurnal tide with an irregular half-diurnal tide.

a.  Air quality at project areas

The project areas are mainly affected by high concentration of suspended particulates. The tested total suspended particulates (TSP) values range from 5.1 to 49.2 mg/m3, which are much higher than Vietnamese standards, especially at inner city roads such as Ong Ich Khiem Road and Nguyen Hoang Road. Residents living in LIAs and along the Phu Loc River have been affected by wastewater odors; the most affected areas are those close to the existing city wastewater outlets such as at Dung Sy Thanh Khe Bridge near the Clinic Centre at Tran Cao Van Road.

b.  Surface water quality

The Phu Loc River is one of the main drainage channels of the city, originating from West Lake and flowing to Danang Bay through the estuary at Nguyen Tat Thanh Road, Thanh Khe Dong Ward. The river section to be rehabilitated has a length of about 2 kilometers and a width of 50 to 80 meters.

The river has been polluted from domestic wastewater, rubbish, and some industrial pollution. According to test results, the pollution of the river is highest at the middle section and lowest at the outlet. Wastewater from the river is discharged into Danang Bay and contaminates coastal water quality. The figure below presents the river water quality.

Water quality of Phu Loc River during ebb-tide, 5/2007

Notes:

NM2: sample taken at starting point of the river

NM3: sample taken at downstream of the city’s drainage outlet, near 29/3 Textile company.

NM4: sample taken near the Phu Loc river outlet.

NM5: sample taken at Danang bay

c.  Groundwater quality

Groundwater from aquifers in the project area is of good quality and could be used for domestic purposes as tested physiochemical parameters are within Vietnamese standards. However, fecal coliforms are detected in most of the samples from shallow wells (three quarters of the samples).

5  Analysis of alternatives

The alternative of the status quo was considered but rejected as an option. Under that scenario, people would continue to live in bad infrastructure conditions and in an unhealthy environment. Lack of adequate drainage systems would contaminate ground water and affect public health, especially during the rainy season. Flooding of lowland areas creates risks of epidemic disease and of economic damage.

If the Phu Loc River is not rehabilitated and continues to receive untreated wastewater, pollution situation will become more serious and would lead to impacts on the local residents’ health. High concentration of pollutants in the river would impact aquatic ecosystems. The transportation routes to be constructed are necessary to meet increasing traffic demand and to create good conditions for economic and tourism development in the project area.

Alternatives were considered for each of the major Phase 1 investments:

·  Minimizing resettlement was carefully considered during designing of the project. Upgrading tertiary roads system in LIAs and realignment of Phu Loc River was considered based on willingness of communities.

·  Alternatives for LIAs were chosen through three community meetings; two options were presented and discussed in the meeting and collected suggestions from communities were included in the basic design.

·  Alternatives for realignment of Phu Loc River were considered to minimize resettlement and preserve cultural properties such as forefather houses and temples, and to avoid existing infrastructure such as the textile company and college.

·  Two major alternatives were considered for the dredging of the Phu Loc River (wet and dry dredging methods). Dry dredging was retained as the best option.

·  Two alternatives of sludge disposal were considered and presented to City People’s committee, including the city’s disposal site and the Khanh Son Landfill. The Khanh Son Landfill was selected for disposal of dredged sludge due to better conditions, reduced environmental impacts, and availability of necessary facilities.