Vietnam Industrial Pollution Management Project (P113151) EXECUTIVE SUMMARY OF ENVIRONMENTAL AND SOCIAL SAFEGUARD DOCUMENTS

Transcription

1 (P113151) Public Disclosure Authorized EXECUTIVE SUMMARY OF ENVIRONMENTAL AND SOCIAL SAFEGUARD DOCUMENTS Ministry of Planning and Investment Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Hanoi, July 16, 2012 Vietnam Industrial Pollution Management Project (P113151)

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3 TABLE OF CONTENTS TABLE OF CONTENTS... 2 CHAPTER 1. GENERAL INTRODUCTION... 5 CHAPTER 2. PROJECT DESCRIPTION PROJECT OBJECTIVES PROJECT AREA PROJECT DESCRIPTION Overview of Components OVERALL ENVIRONMENTAL AND SOCIAL IMPACTS Positive Impacts Negative Impacts Cumulative and Residual Impacts CHAPTER 3. PROJECT SAFEGUARDS APPROACH ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK (ESMF) DOMESTIC SAFEGUARDS REPORTS ENVIRONMENTAL MANAGEMENT PROCEDURES CHAPTER 4. PREPARATION OF A CETP EIA EIA EMP CAPACITY BUILDING CHAPTER 5. DUE DILIGENCE REVIEW OF INVOLUNTARY RESETTLEMENT INVOLUNTARY RESETTLEMENT MITIGATION MEASURES DUE DILIGENCE REVIEW MONITORING CHAPTER 6. PUBLIC CONSULTATION AND DISCLOSURE OF ESMF PUBLIC CONSULTATION INFORMATION DISCLOSURE CHAPTER 7. SUMMARY OF THE EIA FOR NHON TRACH III IZ PROJECT DESCRIPTION ENVIRONMENTAL BASELINE ANALYSIS OF ALTERNATIVES IMPACT ASSESSMENT MITIGATION MEASURES SOCIAL IMPACTS REVIEW CHAPTER 8. SUMMARY OF THE EIA FOR CHAU DUC IZ

4 8.1 PROJECT DESCRIPTION BASELINE DESCRIPTION ALTERNATIVE ANALYSIS EIA AND MITIGATION MEASURES Construction Phase Operation Phase SOCIAL IMPACTS

5 LIST OF ABBREVIATIONS AMS BRVT CETP CEMP CWRPI DARD DOC DOI DONRE DOT DPI EIA ESMF EMP EPA EQM IZ IT IZ IZA MARD MOC MOIT MONRE MOT MP MPI PC PPC PPU QA/QC TOR URENCO USEPA VEA VEPF VIDC VIPMP WB WSC WW Automatic Monitoring Station Ba Ria-Vung Tau Central Effluent Treatment Plant Construction Environmental Management Plan Center of Water Resource Planning and Investigation Department of Agricultural and Rural Development Department of Construction Department of Industry Department of Natural Resources and Environment Department of Transport Department of Planning and Industry Environmental Impact Assessment Environmental and Social Management Framework Environmental Management Plan Environmental Police Administration Environmental Quality Monitoring Industrial Park Information Technology Industrial Zone Industrial Zone Authority Ministry of Agricultural and Rural Development Ministry of Construction Ministry of Industry and Trade Ministry of Natural Resources and Environment Ministry of Transport Ministry of Public Security Ministry of Planning and Investment People s Committee Provincial People s Committee Project Preparation Unit Quality Assurance/Quality Control Terms of Reference Urban Environmental Company United State Environmental Protection Agency Vietnam Environment Administration Vietnam Environmental Protection Fund Vietnam Information Development Center Vietnam Industrial Pollution Management Project World Bank Water Supply Company Waste Water 4

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7 CHAPTER 1. GENERAL INTRODUCTION The Government of Vietnam is preparing the IDA-financed Vietnam Industrial Pollution Management Project (VIPMP) to improve environmental compliance of industrial zones. Wastewater pollution from industrial sources is contributing significantly to high pollution loads in many of Vietnam s rivers, resulting in increasingly serious threats to human health and the use of water for consumption, agriculture, industry, and for maintenance of ecosystem services. The project implementing ministries are the Ministry of Planning and Investment (MPI) and the Ministry of Environment and Natural Resources (MONRE). In order to comply with environmental safeguard requirements of the Government of Vietnam and of the World Bank, MPI has prepared an Environmental and Social Management Framework (ESMF) for the project. The major environmental issues of the project are related to on-lending for construction of centralized effluent treatment plants (CETPs) in industrial zones (IZs). At some project-supported industrial zones, some resettlement activities may still be ongoing so the Bank s Involuntary Resettlement Policy is also triggered. The ESMF lays out the requirements for safeguard instruments for each IZ subproject. Two IZs have prepared loan applications that will be processed in the first year of the project and which have been technically and environmentally evaluated before VIPMP Appraisal. This provides an overview of the ESMF as well as a summary of the EIAs prepared for the project s first two subloans to be processed in the first year of the project at Nhon Trach 3 IZ of Dong Nai Province and Chau Duc IZ in Ba Ria-Vung Tau Province. The Ministry of Planning and Investment (MPI) is grateful to the Government of Korea for having provided the funding to prepare the ESMF (through the World Bank-managed Korean Trust Fund, TF098492). The safeguard instruments for the industrial zones were prepared by the respective industrial zone developers (IZDs). 5

8 CHAPTER 2. PROJECT DESCRIPTION 2.1 PROJECT OBJECTIVES The Project Development Objective is to improve compliance with industrial wastewater treatment regulations in four provinces of Vietnam. This will be achieved by strengthening the institutional and regulatory environment, improving monitoring and enforcement, supplying performance-based concessional finance to increase wastewater treatment capacity and compliance, and disclosing monitoring information and promoting public participation in Ha Nam and Nam Dinh Provinces in the Nhue-Day river basin and Dong Nai and Ba Ria Vung Tau (BR-VT) Provinces in the Dong Nai river basin, two most polluted river basins in Vietnam. The project components are described in more detail in a later section and in the project document. Key performance indicators are: (a) percentage of industrial zones with adequate and good monitoring data on pollution discharges; (b) extent of pollution information disclosed; (c) percentage of public complaints responded and resolved; (d) collection ratio and collected amount of non-compliance fines; and (e) rate of wastewater treatment compliance in industrial zones. 2.2 PROJECT AREA Construction of CETPs in all industrial estates will require a significant amount of investment. A recent study (the BKEP 1 Study) on industrial wastewater pollution in the two most polluted river basins found that 95/140 industrial zones and 182/188 industrial clusters in three northern provinces (Hanoi, Nam Dinh and Ha Nam) in the Nhue-Day river basin and five southeast provinces (Ho Chi Minh, Dong Nai, Binh Duong, Binh Phuoc and Ba Ria-Vung Tau Provinces) in the Dong Nai river basin were operating without a CETP in Four provinces were selected to be included in the project, covering the two river basins included in the above-mentioned study Nhue Day and Dong Nai River Basins. The four provinces selected are Ha Nam, Nam Dinh, Dong Nai and Ba Ria Vung Tau. The province locations are shown in Figure 2.1. The two river basins are among the most polluted in Vietnam. Recently, compared with the quality water in 2006, economic development activities have caused the water quality of Nhue-Day River to decline by 10-20%, especially, the water flowing through Hanoi, Nam Dinh provinces industrial areas, villages, mining and processing area has high pollution level, exceeding allowed regulations many times; even, some are at warning levels. According to Environmental Monitoring Center (VEA), the basin receives nearly 4 million m 3 of wastewater per day; of which, agricultural and livestock activities account for 62 %. Generally, in term of wastewater pollution, Hanoi accounts for 48.8%, followed by Nam Dinh, Ha Nam, Ninh Binh and Hoa Binh provinces (at least 4.4%). In detail, 45,500 private businesses, 19 industrial parks, some industrial clusters and about 450 villages in five provinces and cities is estimated to discharge 232 million m 3 yearly, contributing seriously to the pollution in the basin 2. Moreover, based on the yearly results of monitoring in the basin, water has high concentrations of BOD 5 ; COD; nitrogen compounds; SS; phenol; coliforms, exceeding QCVN 08:2008/BTNMT 1 LBCD Consultants Inc. and Experco International Ltd. (January 2010), Report on Industrial Wastewater Management in Nhue-Day and Dong Nai River Basins. The study was commissioned by the World Bank and Ministry of Planning and Investment (MPI) under the Bank-Korean Environment Partnership. 2 MONRE. (April, 2011). The water quality in Nhue Day basin is degrading. Downloaded from 6

9 (Column A2). Specially, phenol concentrations in Day River were from 2.2 to 10.3 times higher than limits of standard in The water quality of the Dong Nai River basin is affected strongly by many sectors. The lowerriver parts of some rivers in the basin are seriously polluted, with some sections becoming dead rivers. The water of the mid-river sections of the Dong Nai River (especially the part from Thien Tan Water Plant to Long Dai - Dong Nai) has high levels of SS and organic pollution. SS exceeds TCVN (A) by many times, DO is lower than the standard and COD exceeds it by several times. Figure 2.1 Locations of four project provinces 7

10 Figure 2.2 Locations of candidate IZs and monitoring stations in Nhue-Day River Basin 8

11 Thạnh Phú Giang Điền Nhơn Trạch 3 Nhơn Trạch 6 Mỹ Xuân A Mỹ Xuân B1 Ông Kèo Phú Mỹ 2 Phú Mỹ 3 Đại Dương Cái Mép Figure 2.3 Locations of candidate industrial zones in Dong Nai River Basin 2.3 PROJECT DESCRIPTION Overview of Components Component 1: Environmental Policy, Monitoring and Enforcement. This will comprise two subcomponents: (a) Policy Review and Revision; and (b) Environmental Monitoring and Enforcement. Subcomponent (a) will address institutional responsibilities for environmental management in IZs, technical standards needed to support environmental monitoring and supervision, levels of penalty for non-compliance or violations, and disclosure of pollution information. Subcomponent (b) will support the deployment and operation of a network of Automated Monitoring Stations (AMS) to closely monitor surface water quality of the Nue Day and Dong Nai Rivers in the four project provinces, as well as its associated monitoring information management system to properly store, analysis and share monitoring information. In addition, this subcomponent will support IZ specific monitoring and enforcement activities to incentivize proper performance of CETPs in all IZs in the four project provinces. Finally, this subcomponent will promote disclosure of wastewater discharge information and rank environmental performance of all IZs in the four project provinces. The public will be encouraged to channel their concerns and report noncompliance behaviors of the IZs to environmental authorities.

12 Component 2: Performance based CETP financing. As previously noted, there is limited affordable long-term credit for IZDs to build sewerage systems and CETPs. This component will provide performance-based concessional finance through the Vietnam Environmental Protection Fund (VEPF) for the construction of about 10 CETPs and related collections systems, as necessary. To qualify for such financing IZDs will be required to meet more robust design criteria and to adopt improved technical specifications. Performance-based disbursements will be subject to satisfactory quality of construction as assessed by VEPF (90% of cost) and a formal commitment letter by the IZD to meet compliance standards (final 10% of cost). Recognizing that traditional CETP financing (either concessional or commercial) have solely on CETP construction but paid little attention to actual performance of CETPs, this component uses the performance based disbursement to incentivize the IZDs to comply with environmental regulations during the operation phase. Failure to do so will result in reductions in the loan repayment term if discharge violations occur. Immediate full repayment will be triggered if three violations occur. Together with improved enforcement pressure and improved technical capacity at IZDs, this performance based concessional financing is expected to improve wastewater compliance of project financed IZs. There is a strong demand with a total of 13 IZDs expressing interest in accessing finance through the project. A proposal for Nhon Trach III IZ in Dong Nai is the most advanced as well as one from Chau Duc IZ and have been accepted, subject to completion of their appraisal, for the first year of project financing. The ESMF includes more detailed information on each IZ and on which investments they are proposing for support from project on-lending. Component 3: Implementation Support. This will provide (a) capacity building; (b) technical assistance (TA); and (c) project management support to project beneficiaries for them to properly implement project activities and support to project management activities, including monitoring and evaluation (M&E) activities. Capacity Building activities will include four modules of training on environmental management in IZs, surface water quality monitoring, CETP design, operation and maintenance and environmental information disclosure and public participation. Technical Assistance activities will focus mainly on sustainable IZ development, pollution source inventory of the two river basins in the four project provinces, and development of CETP operation and maintenance manuals. Project Management Support will mainly cover incremental operating costs of PMUs and VEPF in managing this project. In addition, a robust project monitoring and evaluation program will be implemented to properly evaluate project results. 10

13 Table 2.1 Identified IZs for CETP financing in the first year of project implementation IZ Châu Đức Nhơn Trạch III (Phase2, expansion) Province Bà Rịa - Vũng Tàu Đồng Nai Year of Establishment Approved Area (ha) Total industrial land area Contracted Area Occupancy Rate 0% 47% Contracted Tenants Total registered 3 29 (including 1 closed projects) In operation 0 20 Under Construction 3 8 Sectors of Tenants Approved as multi-sector IZs but prioritize tenants using clean and advanced technology with low pollution Approved as multi-sector IZs with the existing industries as follows: Medicine, chemical products, prefabricated metal, foodstuff, machinery, rubber and plastic products, textile, electronic products, electric equipment, non-metal mineral products, paper and paper products; real estate, legal, accounting and auditing; civil construction Wastewater Total volume 0 884cm/d at average (with maximum flow of 1,169cm/d). Estimated 3,000cm/d around November 2012 with additional tenants Treated 0 An existing 2000 cm/d facility. 2 nd facility will be needed to increase the existing capacity into 4,000cm/d. Pre-treatment requirement Class C (TCVN Class C (TCVN 5945:2005). 5945:2005). Sludge quantity 0 1 ton/month Sludge disposal 0 Sludge is treated as HW by a licensed company (solidification and landfill) Proposed CETP investment Proposed Capacity 4,000 2,000 Discharging standard A B Estimated Investment (m USD) Current status Site ready. Basic design and draft bidding document ready Site ready, ongoing basic design, no bid yet 2.4 OVERALL ENVIRONMENTAL AND SOCIAL IMPACTS Positive Impacts Table 2.4 summarizes the positive impacts of the project. In general, the VIPM project will result in positive impacts on water quality of Nhue and Day River and Dong Nai River Basin directly improving aquatic ecosystems. Eliminating untreated industrial waste water reduces the risk of potential and adverse impacts on environment and human health. More important than immediate impacts resulting from the project s support of specific CETPs, is the expectation that the financing modalities being piloted by the project will result in considerable 11

14 scaling up of financing available in Vietnam for adequate industrial wastewater treatment. In addition, the improved regulatory and enforcement environment will yield longer-term benefits and impacts on water quality not only in the target rivers but throughout Vietnam. Table 2.2 Summary of positive environmental, economic and social impacts of VIPM project Activities Expected Results Impacts of Environment, Economy and Society Component 1: Enhance capacity on Institutional arrangement and performance 1.1 To review, amend and complete the additional legislation documents related to industrial wastewater pollution management and sustainable development of IZ - Completed researches to propose to amend the relevant contents in the environmental protection law 2005, which will be submitted to National Assembly in Completed, modified, amended or set up new legislation documents related to general environmental protection of river basin and industrial zones as well as regulations related to collection, treatment and management of industrial waste - Contribute into ensure of implementation of the target of environmental protection strategies, which have been mentioned in the environmental social economic development strategies from now to Impact assessment long term and significantly positive impact 1.2 Establish water quality monitoring station and automatic information systems of water quality in the river basin - 17 automatic water quality monitoring stations will be installed in four provinces for conducting online and continuous monitoring of water quality in the contaminated areas in two river basins. - design, set up and develop information system of monitoring stations connected to national automatic environmental monitoring system - support achievement of the general strategically objectives of social economic development and environmental protection master plan via development of monitoring systems of national environment and natural resources, particularly the specific goals on environmental protection in two river basins of Nhue - Day and Dong Nai 3. - Support the process of decisionmaking and policy development related to socio-economic development and environmental protection in two river basins. - Consolidate and improve environmental monitoring systems on water quality to meet real needs for information and monitoring data on environmental management in river basin in Dong Nai and Nhue-Day Rivers. - Create the connection of information and data on environmental water quality and law enforcement on environmental protection of enterprises. 1.3 Enhance monitoring, testing - Support and install on-site - Improve efficiency and quality 3 See Decision No. 16/2007/QĐ-TTg, No. 187/2007/QĐ-TTg and No. 57/2008/QĐ-TTg. 12

15 and inspection capabilities to legislation compliance on waste management of industrial wastewater pollution 1.4 Enhance capability of sharing and disseminating information and mobilize community participant on industrial wastewater pollution control monitoring equipment for MONRE, DONRE, IZA, PC49 in 4 provinces. - Development and implementation of monitoring plan, supervision and inspection of compliance of law on industrial wastewater pollution control. - Build and implement the pilot-scale integrated information system on the discharge of industrial parks, water quality in the river basin and disseminate them to other stakeholders. - Implement a pilot program on information disclosure and mobilization of community participation 4. - Learnt lesson from the pilot program for extending on a national scale. of inspection, testing and monitoring service management and industrial wastewater pollution control through proposed mechanism and appropriate policy. - Increase efficiency and quality monitoring and enforcement of law on environmental protection (testing and inspecting ) - Institutionalize the principles of community - based management on environmental protection work in river basin. - Mobilization of community into actual activities involved in monitoring activities and enforcement of law implementation on environmental protection. Component 2: Pilot financing for investing on CETP Provide pilot loan for investing on CETP construction (centralized waste water treatment plant in industrial zones) - CETPs invested by the loan will be completed on schedule; their business works will be viable and sustainable. - The successful model will be duplicated in many provinces. - Create loaning mechanisms for Infrastructure investment and development company to borrow money for investing on CETP construction in IZ 5. - Treated wastewater at CETP which is invested from WB loan will meet QCVN sustainable. - The model of CETP is summarized and disseminated in larger scale. - Beneficiary area of VIPM project will be shown in Figure 2.3 and Long-term positive impact, some short-term adverse impacts. Component 3: Technical Assistance for Industrial Zones and Project Implementation Support 3.1 Increase capability of those who work in industrial wastewater pollution and technical support and project management - Organize training activities on environmental management, environmental monitoring and environmental information. - Explore activities of support and technology consultancy such as the set of training documents - Contribute into effective control of industrial wastewater pollution control, economic efficiency, social and environmental improvement in river basin Long term, significantly positive impacts. 3.2 Conducting - Researches on model of eco- - Develop the scientific basis for 4 This activities bring results via assess the compliment and ranking of IZ based on the results from environmental protection missions, dissemination of ranking results to public communities, establishment of hotline in order to create channel for resident to support the authorizes to monitor, inspect and prevent those who break the law on environmental protection. 5 Loan Terms: enterprises must commit to fully implement the legal responsibility for environmental protection during construction and operation of industrial zones. 13

16 researches involved industrial parks and industrial green production; on evaluation of loading capacity and self-cleaning capacity of river, to set up instructions on the design, construction, operation and management of CETP in IZ; build the methods of pollution evaluation and improvement and cleaning solutions applied for contaminated river basin. making decision on environmental protection. - Contribute into effective control of industrial waste water pollution, economic efficiency, social and environmental improvement in river basin. 3.3 Management and implementation of projects 3.4 Project Monitoring and Assessment - Supports on management and coordination of project activities. - Fund sources to the Environmental Protection Fund in evaluations for candidate IZs under Component 2, implemented loan mechanism, and soft wares of Component 2 management. - Hired consultants to support technical assessment, monitoring, and auditing. - Ensure the effectiveness, sustainability, and transparency of the project. - Ensure project activity of component 2 implementing effectively and sustainable. - Ensure to evaluation of effectiveness of environmental, economic and social impacts Negative Impacts The VIPM will not have significant adverse impacts because it will not create new wastewater loads to rivers, over and above what is already planned by the IZs. However, the project triggers OP4.01 on Environmental Assessment as during the construction and operation of individual CETPs under VIPM project, it may have some negative environmental impacts which should be taken into account and mitigated. Negative impacts include those during construction of CETPs (to be addressed through environmental management plans (EMPs)), impacts from CETP operation in case of failure of waste water treatment, and sludge treatment. However, those impacts are local and mitigable, providing adequate implementation of the SEMP and mitigation measures. In Component 1 the project also finances the construction of AMSs. The environmental impacts from the construction are minimal. However, simple standard Environmental Codes of Practice (ECOPs) will be attached to bidding documents to ensure they are addressed by the contractors during construction. The Bank s policy on Involuntary Resettlement OP 4.12 is triggered; the prior creation of the IZs involved involuntary resettlement and although the project will not result in any additional involuntary resettlement, due diligence reviews of the resettlement process are needed as part of project activities. The ESMF establishes guidance on how to carry out a due diligence review of involuntary land resettlement issues to ensure it was carried out in accordance with Government regulations, consistent with the WB 4.12 be consistent with the Bank s policy objective and that there are no legacy issues. The Indigenous Peoples OP 4.10 is not triggered, because project scoping confirmed that there are no ethnic minority peoples to be potentially affected or benefited in the area of the projects investments, of the zones proposed for the project investments as per the OP 4.10 characteristics. The main impacts due to the operation of CETPs are listed in the table below. 14

17 Table 2.3 Summary of environmental impacts of CETP operation prior to mitigation NO. Impacts Sources Description Assessment Negative Positive Shortterm Longterm Shortterm Longterm 1 Acclimation Untreated water discharged to Impacts on water bodies due to high concentration of organic H water bodies matters, nutrition and micro-organisms 2 Dredging and transport of septage 3 Surface water pollution However, these impacts cannot be prevented from any CETP. Odor emitted from collection and Sludge will be generated from CETP, which could affect M transport of septage directly to life enjoyment of people along the haulage route. Micro-organism dispersion when However, this impact is easily mitigated. M the truck is not covered properly. Air pollution due to transportation L means: dust, SO 2, CO 2, CO, NO x Treated water discharged to water Pollute the surrounding surface water. This impact is bodies unavoidable but can be mitigated. M H 4 Groundwater Wastewater leakage Long-term and wide-spread. M contamination Special attention to pressurized pipes. Infiltration from sludge drying Long-term and dangerous if the lake bottom is not properly M beds or tanks lined. 5 Operational Algae blooming creating Long-term and directly harmful for local residents M problems conditions for flies and mosquitoes development Odors Not high because it is far from residential areas M 6 Air Odors Not high because the buffer zone dimension satisfies TCVN M environment pollution Noise 7222:2002 (300m) L 7 Solid waste Domestic solid waste of workers Small quality and will be collected by public service. L disposal Hazardous waste: chemicals, oils, debris Small quality but high risk. It must be managed properly. M 8 Sludge solid waste from screenings Sewage contains SS, oil and grease, BOD and nutrition. M M S1-6 Environmental Consultant Team 15

18 NO. Impacts Sources Description Assessment Negative Positive Shortterm Longterm Shortterm Longterm management Settled sand at intake structure Impacts from bacteria and odor of stabilized sludge are not Raw sludge at ASPS Biological sludge Sewage high. Furthermore, with the high content of nutrition, stabilized sludge is suitable for agricultural purposes. 9 Impacts to Noise and odor Not important because it is far from residential area and in IZ. M public works 10 Traffic safety Traffic congestion Although access routes are of high density, the operation of L 11 Working safety CETP does not affect much on the traffic congestion. Medium-size M Lack of safety equipments for workers Environmental pollution M Electricity hazards M Fires M Exposure to micro-organism Risky for workers H threatening 12 Public health Chemical spillage Far from residential areas M and safety Domestic solid waste solid waste Workers activities Note: L (low), M (medium), H (high). Assessment of impacts is prior to application of mitigation measures. S1-6 Environmental Consultant Team 16

19 2.4.3 Cumulative and Residual Impacts As mentioned above, the project is expected to have a cumulative positive impact by improving effluent quality in project-targeted IZs but also by leveraging the project investment to scale-up similar investments in other IZs. Where the project will help bring online new CETPs, there will be cumulative increases in total amounts of discharged wastewater and sludge. In the absence of the project, such increases would however have been much greater as all candidate IZs will eventually come into operation and would do so with less effective CETPs or no CETPs at all. Such cumulative negative impacts, if any, cannot be calculated at this time as the final list of IZs will only be determined during project implementation. The additional amounts of effluent and sludge that can be attributed to the project will be relatively insignificant compared to total pollution loads in the rivers or daily production of solid waste in the target provinces. 17

20 CHAPTER 3. PROJECT SAFEGUARDS APPROACH 3.1 ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK (ESMF) The project s overall safeguard approach is defined in the project s Environmental and Social Management Framework (ESMF), prepared by the Ministry of Planning and Investment and reviewed and accepted by the World Bank. As the project triggers both OP4.01 (Environmental Assessment) and OP4.12 (Involuntary Resettlement) the Environmental and Social Management Framework (ESMF) specifies how the project will: - Assess the potential environmental and social impacts of the proposed project. - Establish clear directives and methodologies for the evaluation of sub-projects to be financed by the proposed project in terms of social and environmental impacts. - Provide control points for decision making, institutional responsibilities, and the environment and social instruments that will be required. - Supply guidance on EIA preparation for candidate centralized effluent treatment plants (CETPs). Only Component 1b (construction, installation and operation water quality monitoring stations) and Component 2 (construction and operation of CETPs) have potential adverse impacts on the environment which need to be assessed and mitigated. Therefore this ESMF will just focus on those two components. For environmental safeguards, a single CEPF EIA (including EMP) is to be prepared by each IZ submitting a subproject to the VIPMP (see Chapter 4 for details). This will draw on existing EIA(s) and other available documents. The ESMF contains a detailed recommended outline for the table of contents of an EIA, including that of an EMP. For social safeguards, the project has established a clear criterion to consider an IZ eligible for investment with regard to involuntary resettlement issues. Chapter 5 provides details on how the Bank will carry out a due diligence review and monitoring social safeguards issues of the project during preparation and implementation. 3.2 DOMESTIC SAFEGUARDS REPORTS A chapter in the ESMF provides a detailed review of the legislative and institutional framework for industrial pollution control. The following reports are prepared in Vietnam according to national regulations and requirements for environmental management of CETP construction and operation: Environmental Impact Assessment Report (EIA) for the CETP: this report should be prepared following the guidance of Decree No. 29/2011 and Circular No.26/2011 of Vietnamese Government to assess potential impacts of a CETP project and propose mitigation measures and monitoring program. Before 2011 the IZ EIA was only EIA required by the GoV. As of 2011, it is one of two EIAs that must be prepared one for the IZ and one for the CETP), which will be reviewed and approved by the competent government authorities. 18

21 Wastewater Discharge reports (WDR): This report is prepared before commissioning CETPs to get wastewater discharge license from Vietnamese Government and to ensure that CETP performance will meet the effluent standards and their discharge did not damage the aquatic environment. The discharge license could be granted up to 5 years and extended for 3 years, after which CETPs need to apply for new permission. Environmental quality monitoring report (EQM): This report is required for every 6 months at least to report all environmental quality monitoring data to ensure the performance of CETPs and standard compliance Operational Manual of CETP: This report provides the guidance for operating correctly the CETP. Environmental auditing (EA): This report is recommended (not obligatory) and should be conducted when CETP operation is stable. This report will help to check all the environmental issues related to CETP operation. 3.3 ENVIRONMENTAL MANAGEMENT PROCEDURES Figure 3.1 outlines the procedure for implementing safeguard instruments for CETPs in the VIPMP on environmental management. In summary, each IZ must prepare an EIA for the CETP. The EIA (including an environmental management plan or EMP) will summarize the available information from existing EIA(s). In cases where an appropriate EIA has not been carried out for the CETP, supplemental work will have to be carried out by the IZ. The EIA fully meets Government of Vietnam and World Bank requirements, draws on existing EIAs (supplemented as needed by extra work) and essentially constitutes the required content of the government-required WDR which the IZ will need to prepare prior to the commencement of operation of the CETP. The following chapter covers in more details the guidelines for the EIA that will be prepared by each IZ under the project. 19

22 Figure 3.1 Proposed preparation and reviewing procedures for implementing safeguards instruments for VIPMP 20

23 CHAPTER 4. PREPARATION OF A CETP EIA As noted in the previous chapter, a single CEPF EIA is to be prepared by each IZ submitting a subproject to the VIPMP. This will draw on existing EIA(s) and other available documents. The resulting document will be very similar to the Wastewater Discharge Report (WDR) which the IZ must later submit to the Government. The ESMF contains a detailed recommended outline for the table of contents of an EIA, including that of an EMP. 4.1 EIA To meet the above purpose, the CETP EIA should include a general introduction about the CETP project and relevant legislative framework. The document should include an analysis of site-specific information for each industrial zone such as kinds of industries at the IZs, nature of pre-treatment at individual industries, infrastructure providing connection to the CETPs, nature of influents to be expected at the CETP. It also provides the technical specification of the waste water treatment system, detailed information on water usage, water quality and loading capacity of wastewater receiving water. It also should provide detailed information on expected impacts, guidelines on mitigation measures and risk management, guidelines on monitoring the collecting rate of wastewater, operation and maintenance of the CETPs, occupational, health and safety measures, monitoring plan of environmental performance, sludge disposal, chemical management, capacity building programs, and cost estimation, etc. The key stakeholder consultant and project information disclosure will be stated clearly as required. The ESMF includes more detailed information on typical mitigation measures that would be required for each subproject. 4.2 EMP As part of the CETP EIA, an Environmental management plan (EMP) is set up for stakeholders and contractors to execute environmental protection measures in the whole project stages from construction to operation of CETP. Environmental codes of practice (ECOPs) are mitigation measures for generic impacts from project activities during the construction phase and are intended to be included in the bidding documents as requirements directed to the construction contractor. The ECOP implementation will be supervised by IZA, IDC and DONRE. All construction work will be done in accordance with appropriate standards, and construction methods as defined in the EMP. These in turn need to be reflected in the tender documents/contracts. The contractors must then prepare a construction environmental management plan (CEMP) explaining exactly how they propose to ensure their compliance with EMP/ECOPs.. The CEMP is subject to the approval of the Engineering Supervision Consultant (ESC). Monitoring compliance with the EMP is thus a responsibility of the ESC. Penalties for 21

24 violation of CEMP must be included in the construction contracts. It could be financial penalties for negative impacts or bonus for positive impacts. These penalties or bonuses must be prepared by the investor and included in the bidding documents. In the operation phase, ECOPs are also applied for easier management. These ECOPs are related to waste management, effluent discharge of CETP, and public health. AMS is installed to control the quality of effluent. The regular monitored parameters are: ph, COD, TSS, and flow-rate at effluent discharge point. The full environmental monitoring program is included in the EIA. 4.3 CAPACITY BUILDING All industrial zones will need some capacity building to adequately implement the measures of the EMP. The project will provide such assistance (through Component 3) and the details of the needed capacity building would be specified in each individual EMP. In addition there are capacity building needs at MPI and MONRE and at VEPF, all of which are considered in the project design. 22

25 CHAPTER 5. DUE DILIGENCE REVIEW OF INVOLUNTARY RESETTLEMENT Involuntary Resettlement OP 4.12 is triggered by Component 2. CETP construction and operation will take place within IZs. In Vietnam, the process of creating an IZ typically involves land clearance. When an IZ is planned, land clearance following Government norms and regulation is carried out, but compensation usually would take place over a number of years. Because of the long period of time required to develop an IZ having industries in operation, IZs are typically developed in phases. Correspondingly, many IZs develop CETPs in phases, depending on the scale of activities within the IZ which requires expansion of existing CETP facilities over time. An IZ may have long-term plans for several CETPs, servicing different parts of the IZ as they are cleared and occupied by industries. For Component 2, CETP sub-project investments will thus take place on land that was acquired using the Government of Vietnam s eminent domain for the creation of Industrial Zones (IZ). In all cases, involuntary resettlement will have been completed or substantially completed by the time of project identification. Although the involuntary resettlement in the IZs selected for project investments was not caused by or attributable to the project, the policy is triggered because in some cases IZs will have minor activities related to involuntary resettlement on-going at the time of IZs loan appraisal submission procedures. 5.1 INVOLUNTARY RESETTLEMENT MITIGATION MEASURES For a Component 2 loan for a CETP, the project will evaluate involuntary resettlement that has taken place in the CETP service area, which is defined as being: (i) the land area within the IZ physically occupied by the CETP which will be financed by the project, or the area already occupied by an CETP if the project is upgrading it; and (ii) the entire land area within the IZ that will be occupied by industries that are or will be serviced by the CETP. The project s criteria to consider an IZ eligible for investment with regard to involuntary resettlement issues includes the following provisions: a. The Overall Compensation, Support and Resettlement Plan 6 was issued and approved by the Provincial Authorities before the cut-off date, May 2010, date of the project identification mission. This confirms that land was not acquired in anticipation of the project and that the compensation process for involuntary resettlement is substantially advanced. The table below indicates the compensation steps that will have been accomplished by the issuance of the Overall Plan. b. The World Bank will have assessed the scope of completed of on-going compensation activities in a due diligence report (see further details below) and will have determined they are consistent with GoV regulations and consistent with the Bank s policy objectives. Two key elements to address will be the existence and functionality of a Grievances and Redress mechanisms responding to claims, queries or any aspect related to the on-going resettlement plan implementation and 6 The ESMF includes a detailed outline of all the key official steps involved in land acquisition using the GoV s eminent domain procedures, including those after the approval of the Overall Plan. 23

26 monitoring of livelihood restoration of affected peoples. If either the Government regulations and/or World Bank policy objectives have not been met, a remedial action plan to be implemented by the IZ will have been prepared by the IZ and cleared by the World Bank. 5.2 DUE DILIGENCE REVIEW The World Bank will perform a due diligence review of involuntary resettlement issues related to CETP financing. Methods used for gathering the information for the Due Diligence (DD) report should include desk review of documents issued at the levels of the province, district and communes, collecting and analyzing the qualitative and quantitative information gathered in the field, results of the interviews with a representative sample of displaced persons, and analysis of other pertinent issues and documents related to involuntary resettlement and land compensation on a case-by-case basis. Information gathered will include: Number of people displaced Entitlements of people displaced; Eligibility criteria used for compensation payments according to the government regulations Types of land and methods used for valuing the land according to the government regulations Compensation status Description of grievances mechanisms Description of consultations and its outcomes Programs implemented for income restoration, including allowances paid and capacity building programs Resettlement schedule and dates of compensation payments completion Grievance and redress mechanism in place and in operation Legacies or liabilities pending Disclosure of information to affected people 5.3 MONITORING Based on the findings of the DD, the project implementing agency will carry out monitoring during project implementation of any aspect of the involuntary resettlement and compensation that may be ongoing. In its supervision, the Bank will similarly review the status of any pending compensation activities. 24

27 CHAPTER 6. PUBLIC CONSULTATION AND DISCLOSURE OF ESMF 6.1 PUBLIC CONSULTATION During preparation of the ESMF, the environmental consultant team did not organize any community-level consultations as these would more appropriately be carried out as part of the EIA of each individual IZ included under the project (see for example the public consultation sections in chapters 8 and 9 for two specific IZs). For the ESMF itself, meetings, workshops and expert consultant dialogues were conducted with various stakeholders. The target groups consulted were: (1) Representatives of Provincial People's Committee, of DONREs, DOITs, and IZs; (2) CETP investors; and (3) Technical consultants for CETP design. In addition, the general safeguards approach of the project was presented in a stakeholder workshop on 29 September, 2012 with participants from four provinces. The ESMF includes detailed information on who was consulted, comments and suggestions made at the consultations, and how these observations were taken into account both in project design and in finalizing the ESMF. 6.2 INFORMATION DISCLOSURE The English version of the ESMF was disclosed at VDIC in Hanoi and in Washington, DC on 4 June The Vietnamese version of the ESMF was disclosed at the WB office in Hanoi on 6 July The two EIAs, considered in the following sections, have also been disclosed in both English and in Vietnamese so as to be accessible to all interested stakeholders. 25

28 CHAPTER 7. SUMMARY OF THE EIA FOR NHON TRACH III IZ Nhon Trach 3 Industrial Zone is authorized by Tin Nghia Corporation to manage the infrastructure of the IZ. Hence it is also responsible for the implementation of the CETP (Module 2), capacity 2,000 m 3 /day in Nhon Trach 3 IZ. The proposed investment will add capacity to an existing CETP. Considerable information was already available on environmental issues as there is an existing EIA for the IZ and the owner has already prepared detailed wastewater discharge reports for the DONRE. For the purposes of this project an EIA was prepared but it includes a summary of all relevant information from the existing EIA. The EIA was prepared by the Environmental Technology Center (ENTEC), part of Vietnam Association for Conservation of Nature and Environment (VACNE). The following is a summary. 7.1 PROJECT DESCRIPTION The project owners are Nhon Trach 3 IP One member Affiliated Co., Ltd. And the location is at Road No. 2, Nhon Trach Industrial Park No. 1, Phase II, Nhon Trach District, Dong Nai Province. The purpose of the proposed investment is to expand the existing CETP and to develop a Module 2 CETP, with an incremental capacity of 2,000 m 3 /day (the total capacity of two modules is 4,000 m 3 /day). This responds to an increase in the number of firms within the IZ and the rising demand for wastewater treatment. Currently the average wastewater volume is 884m 3 /day, peaking at 1,169m 3 /day. By November 2012, the total wastewater volume of Nhon Trach 3 IP, Phase 2 will increase to around 3,000 m 3 /day. To properly collect and treat this wastewater, Tin Nghia has been developing the second module to expand the total capacity of the wastewater treatment facility of Nhon Trach 3 IP, Phase 2 to 4,000m 3 /day. 7.2 ENVIRONMENTAL BASELINE Thi Vai River is the wastewater receiving body for all of Nhon Trach 3 wastewater and currently is heavily polluted due to wastewater from nearby sources. River flow rate peaks at 3,400 m 3 /s, with river with tide reverse flow peaked with tide at 2,300 m 3 /s. River flow rate during wet season is around m 3 /s and during dry season is around 200 m 3 /s. The minimum recorded flow rate is m 3 /s. The highest river speed could reach 1.5 m/s. Within 3 km downstream of Thi Vai (from Mareng discharge point), there are no river water intake sites, even for industrial or aquaculture purposes, because of the poor water quality. The analysed sampling results from nearby surface water quality samples comparing to QCVN 08:2008/BTNMT, column B 1 showed parameters like COD, BOD and TSS over the standards. 26

29 7.3 ANALYSIS OF ALTERNATIVES As the Module 2 will use the same discharge point as Module 1 no alternative discharge point locations were considered. As the Module 2 will have to integrate into Module 1, there are limited options for the treatment technology and for sludge treatment and disposal; the same technologies and procedures will be followed. 7.4 IMPACT ASSESSMENT After the Module 2 start operating, a flow of 2,000 m 3 / day will be added into Mareng Canal, bringing with it an equivalence of 31.6 kg TSS, 14 kg BOD 5, 104 kg COD, 0.76 kg ammonia and 0.36 kg Total iron. The EIA evaluated potential impacts. There is no expected impact of the discharge onto the ecology and mangrove areas downstream (Long Thanh Nhon Trach areas) because the biological value of the Thi Vai River is already greatly reduced and the mangrove areas downstream are very distant. The discharge rate from the CETP (Module 2) is insignificant comparing to Mareng and Thi Vai River, hence will not affect the river and canal flow. The discharge from the CETP does not produce odour as determined in interviews with local residents and so no significant impact expected on air quality. There was no suggestion during consultation with residents from the nearby residential areas (around Mareng and Thi Vai) that their socio-economical situations might be affected by the project. If anything, it should generated positive impacts through local job creation. With regard to cumulative impacts, for Ma Reng Canal, after receiving the treated wastewater from the IZ, it will still be able to sustain the loads of parameters BOD, SS, As, Pb, Cd and Hg. Only COD is already over the standards and as the new effluent will need to respect effluent quality standards, the COD levels should not increase. Similarly for Thi Vai River, modeling has shown no incremental impact from the projected Nhon Trach 3 discharges given the extremely heavy pollution loading already in the river. It is expected that the CETP discharge should actually help to improve slightly the river quality. 7.5 MITIGATION MEASURES The EMP included in the EIA outlines a complete set of mitigation measures to be followed during construction and operation. Some of these are detailed below. Construction stages (all mitigation measures covered through the ECOPs) Water pollution mitigation measures Air pollution mitigation measures Mitigation measures for impacts from solid wastes 27

30 Operation stages Water pollution mitigation measures: careful compliance with the CETP operational manual, regular monitoring of quality of influents and effluent Air pollution mitigation measures: compliance with the operational manual to ensure there is no generation of odors Negative impacts mitigation for solid wastes: all solid wastes will have to be disposed of according to national regulations and as outlined in the EMP Negative impacts mitigation for sludge: sludge produced by the CETP will be regularly monitored and tested for concentrations of pollutants which could result in it being considered hazardous. Disposal of sludge, depending on whether it is categorized as hazardous or non-hazardous, will follow the procedures in the EMP. 7.6 SOCIAL IMPACTS REVIEW Nhon Trach 3 IZ, was established in November 2006, with a total area of ha. Twenty nine industries are the current occupants of the IZ. The Due Diligence review confirmed that resettlement and compensation for the whole IZ had been fully completed between 1998 and The Tin Nghia Company holds the LURCs (Red Book) since 2008 for the whole IZs area in compliance with government regulations and in line with the WB s OP According to due diligence review, no further land acquisition will be undertaken and there are no legacy issues pending to be solved. 28