ECCi. E959 Vol. 26. Environmental Impact Assessment Thua Thien Hue Province. liso Vietnam REII Central Region Project Preparation

Transcription

1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Socialist Republic of Vietnam E959 Vol. 26 ECCi Ministry of Industry PHRD Grant N TF liso 9001 Vietnam REII Central Region Project Preparation Environmental Impact Assessment Thua Thien Hue Province March 2007

2 Socialist Republic of Vietnam Ministry of Industry D)E PHRD Grant NO TF I ISO 9001 Vietnam REII Central Region Project Preparation Environmental Impact Assessment Thua Thien Hue Province March 2007 al

3 Environmental Impact Assessment Thua Thien Hue Province Vietnam REII Central Region Project Preparation PHRD Grant NO TF Prepared for Ministry of Industry Prepared by: Maunsell Ltd 47 George Street, Newmarket PO Box 4241 Auckland, New Zealand Tel Fax Dower&eneraov(maunsell.com In association with: IISO 9001 Hanoi, Vietnam March /109 id Maunsell Ltd 2006 The information contained in this document produced by Maunsell Ltd is solely for the use of the Client identified on the cover sheet for the purpose for which it has been prepared and Maunsell Ltd undertakes no duty to or accepts any responsibility to any third party who may rely upon this document, All rights reserved No section or element of this document may be removed from this document, reproduced, electronically stored or transmitted in any form without the written permission of Maunsell Ltd.

4 1.0 Introduction 1.1 Project Background Rural Energy 11 Project in General At present 81% of households in the rural areas of Vietnam have access to electric power, which means about 12 million people are living without electricity. Recognising the need to supply power to the rural areas as an integral part of its poverty alleviation strategy, the Government of Vietnam has approved a Master Plan for with the objective of providing electricity to 100% of communes and 90% of rural households by While the RE programme is a high priority for the Government of Vietnam, progress has been modest to date for two reasons: a lack of adequate financial resources - in 1998 MPI estimated the total cost for the electrification of the entire country at US$ 3.8 billion; and a lack of suitable institutional arrangements for RE. Major issues for rural electrification include: * Limited access to electricity. About 19% of the 12.8 million households in rural areas do not have electricity * Low consumption levels. The average per capita electric power consumption in rural areas was less than 30 kw/year in 2000 reflecting the lack of productive uses * High retail tariffs - household income in rural areas is much lower than in urban areas, consumers in the rural areas often pay much higher prices for power due to poor management and high technical losses; high cost of extension discriminates against the poor who are unable to pay the connection charges to connect to the grid * The lack of a legal framework for the management of local grids. Most of the existing management entities for rural networks at commune level have no legal status, limited financial controls, poor access to finance and operate in an environment that does not guarantee the quality of supply to consumers * Difficulty connecting communes in remote areas to the grid. Supplying electricity to indigenous people who live in the remote areas presents major problems in terms of technical, financial and institutional constraints. There are an estimated 1,000-1,500 communes and villages in remote mountainous areas in the north, in the centre and islands in the south - where it would be both physically difficult and extremely expensive to extend the national grid. Renewable energy resource development will, therefore, need to play a major part in supplying electricity to these areas. However, only limited field data and experience of these options is available at present. The development objectives of the proposed Rural Energy Project II are to assist the Government of Vietnam to alleviate poverty in the rural areas by providing basic infrastructure services such as electricity and access to information for improving living conditions and productivity. Environmental Impact Assessment Thua Thien Hue Province - Final Page 1

5 The Rural Energy I Project, which is currently under implementation, was designed to urgently expand rural electrification and will connect about 900 communes to the national grid, providing electricity to over 400,000 rural households. The RE-II project will help the Government of Vietnam implement its objectives of providing electricity to about 24 million rural people by (a) developing a national strategy for rural electrification with special focus on provision of energy to remote mountainous areas; (b) repairing and maintaining the existing rural power network in about 1,000 communes (out of a total of 6,000 communes which need to be rehabilitated) to reduce technical and non technical losses; (c) assisting local authorities to improve existing management systems, by converting to new management models, (d) and expanding the use of renewable energy for off-grid systems to serve the rural load in remote and isolated areas. To achieve the development objectives, the project is expected to have 4 major components: 1) Rehabilitation and expansion of existing rural power networks to improve supply in rural communes 2) Improving the management of rural power networks 3) Promoting the use of renewable energy in the remote areas 4) Technical assistance for supporting the reform process in the energy sector including strengthening capacity for policy formulation, financial planning and management so that the Rural Electrification programme is implemented efficiently. The project will tentatively be funded by the IDA in the amount of US$ 220 million Rural Energy II Project in Thua Thien Hue Province Together with Quang Tri, Thua Thien Hue Province was selected to be a candidate for the RE II Project since it meets the basic conditions set out for the project. This has been confirmed to Thua Thien Hue Province and EVN by MOI in document N /CV-KHDT. In particular the Province agrees and is willing to finance project preparation and counterpart funding for the low voltage system. Local authorities agree to convert the existing management models to a new model that accords with the law, including Decree 45. They also agree to coordinate with the power companies during the project preparation and implementation, to secure seamless integration of the Medium Voltage and Low voltage systems in project communes. The Department of Industry of Thua Thien Hue Province (DOI) - on behalf on the Provincial People Committee - has issued three official dispatches requiring its Districts to select project communes that will conform with project conditions. Dispatch NO 84/CV-SCN provides criteria to select project communes. Dispatch NO 267/CV- SCN requires its Districts to register the names of communes. Dispatch N 266/CV-SCN requires the selected communes submit socio-economic and data and details of the condition of the existing power network. This Dispatch also indicated that if a commune does not want to be included in the Project, it should confirm this with the DOI. Environmental Impact Assessment Thua Thien Hue Province - Final Page 2

6 The list of project communes that was approved by MOI for the Feasibility Study includes 34 communes in 6 districts: Quang Dien (6 communes), Phong Dien (5 communes), Huong Tra (6 communes), Huong Thuy (4 communes), Phu Vang (7 communes) and Phu Loc (6 communes). Two communes: Phu Duong and Phu Xuan of Phu Vang Districts, were leaved out of the Project. The final list, therefore, contains of 32 communes. The names of communes are given below: Table 1: Project Communes of Thua Thien Hue Province Names of Districts Names of Communes 1. Quang Dien Quang Phu, Quang Loi, Quang Phuoc, Quang Ngan, Quang Thai, Quang Tho 2. Phong Dien Phong Thu, Phong Hoa, Phong An, Phong Binh, Phong Son 3. Huong Tra Huong Phong, Huong Ho, Huong Chu, Huong Toan, Huong Vinh, Huong Xuan 4. Huong Thuy Thuy Thanh, Thuy Chau, Thuy Tan, Thuy Phu 5. Phu Vang Phu An, Vinh Ha, Phu Thai, Phu Ho, Vinh Phu 6. Phu Loc Loc Tien, Loc Bon, Loc An, Loc Son, Loc Tri, Loc Dien These communes were selected using the following criteria: * The existing network in the commune is more than ten-years old * Electricity has already been provided to more than 80% of the households * Energy demand for productive uses is greater than 20% of the total * Technical losses are greater than 25% of the power demand * After diversity maximum demand is greater than 500 kw/household. One more criteria was applied at district level to select project communes; that is the existing condition of the power network. This is because that even though a portion of the network was constructed less than ten years ago, the present condition is poor due to the harsh environment in Central Vietnam. These harsh environmental factors include the weather conditions, a corrosive marine environment adjacent to the sea and poor initial construction standards. The selection of Quang Ngan commune (Quang Dien District) as a candidate commune is an example of this. The network in this commune was constructed in 1997 however the present condition of this network is poor and it is unsafe. Almost all the power networks were constructed in the period 1991 to 1994 (31 communes) and have been used for more than ten years. The exceptions to this are Quang Ngan as mentioned above and two other communes: Huong Ho (Huong Tra District) and Thuy Thanh (Huong Thuy District). These networks were originally built in 1984 and in 1987, respectively: Generally, the existing power network in these communes is in poor condition. Technical losses are reported around 24-25% for all project communes. The contribution to the original network costs were as follows: * 20-30% by the Province * 30% by Commune Cooperatives, (varies from a low of 20% to a high of 40%) * 30-50% by villagers. Environmental Impact Assessment Thua Thien Hue Province - Final Page 3

7 Data collected by the technical teams indicates that more than 98% of households in Thua Thien Hue are electrified (data source PECC1 billing and metering records for each village). In the interim, development in Thua Thien Hue rural areas is increasing rapidly due to industrialisation and modernisation programmes established by the Government. Thus, the main objective of the Project is to provide a more reliable source of electricity that can fulfil growing demand up to In principle, all candidate communes in Thua Thien Hue province fit with the criteria of commune selection set out by Rural Energy II Project. The local authorities have completed converting the previous ad hoc management models to the new model with a legal status that accords with the present law. This will establish an environment for improving institutional capacity at a local level. The rural electrification network in Thua Thien Hue will be able to operate more effectively, safely and profitably. 1.2 Purpose and Methodology of Environmental Impact Assessment Purpose According to the World Bank's guidelines for Applying Environmental Safeguards, the Rural Energy II Project is classified as a Category B project. For Category B projects, an EIA in the form of an EMP is usually sufficient. This EIA report follows both the World Bank's safeguard policies and Vietnamese Government policies on environmental assessment. The report presents both positive and negative impacts of all phases (pre-construction, construction and operation) of the proposed project in Thua Thien Hue province. The EMP is also covered. The report has been prepared using recommendations for conducting environmental screening and developing an environmental management plan for Category B transmission and distribution projects. These recommendations are given in the World Bank's Framework for Applying Environment Safeguards for the Rural Energy II Project Methodology This EIA report is primarily based on the large amount of data and information collected by the technical teams of PECCl and Maunsell Ltd. At the provincial level, data was collected through discussions with the Department of Resources and Environment of Thua Thien Hue Province, which provided existing environmental data for the province and project districts. At the district levels, interviews were conducted with the Head of the Economic Departments of the six project districts, who are responsible for monitoring district environmental issues. The interviews were conducted to evaluate the potential project environmental impacts and mitigation measures. At the commune level, focus group discussions with commune leaders, mass organisation leaders and representatives of households were carried-out. In these discussions, the potential environmental impacts as well as the proposed mitigation measures were discussed. The Memorandum of Community Consultation for Environmental Impact Assessment was completed together with the Matrix of Rapid Environmental Assessment. (See Annexes 4 and 5). At the village level, seven households were Environmental Impact Assessment Thua Thien Hue Province - Final Page 4

8 interviewed on the potential impacts of the project and proposed mitigation measures. (Names of households interviewed are given in Annex 6). 1.3 The Legal and Policy Framework for Environmental Impact Assessment Vietnam regulations and laws: Law on Protection of the Environment (LEP) No 52/2006/QH1 1 dated 20/11/2006 was enacted in 1/7/2006. Decree 80/2006/TT- BTNNMT dated 09/8/2006 to guide implementation of LEP. Cicular 08/2006/TT-BTNNMT dated 08/9/2006 to guide implementation of the SEA and EIA and Commitement on Environmental Protection. Decrees 143 on amendment of Item 14 of Decree 175 CP dated 18/10/1994 of Government on guidance for implementation of LEP. Circular No. 490 "Guidance on setting up and appraising environmental impact assessment reports for investment projects". Law on Forest Protection (1992). This law regulates forest management, protection, development, and exploitation, prevention of woodcutting, and forest destruction. It also encourages individuals and organizations to protect and develop forests. Decree 54/1999/ND-CP relating to the protection of high-voltage networks. Decree 70/1987-HDBT specifies safety casements of high-voltage transmission lines. Decree 24/2000/ND-CP specifies the implementation on the Law on Foreign Investment in Vietnam (Article 82) concerning environmental protection. Decree 52/1999/ND-CP includes environmental considerations for construction management. Decree 26/1996/CP provides regulations on the punishment of administrative violation of Environmental Protection Law. Vietnam National standards (TCVN) are national standards established by the Ministry of Science and Technology (MoST) and applied to all government agencies. They include engineering, construction, scientific, and environmental standards. TCVN environmental standards include acceptable limits of many air, noise, and water quality parameters. 11 TCN sets the standard for minimum clearance between live parts of a line and trees World Bank safeguard policies - OP 4.01 Environmental Assessment; - OP 4.04 Natural Habitats; - OP 4.11 Cultural Property; - BP Public Disclosure. Detailed guidance on assessment methodologies and common impacts associated with transmission projects are found in: Environmental Impact Assessment Thua Thien Hue Province - Final Page 5

9 World Bank, Environmental Assessment Sourcebook, Volume 3. IFC, Environmental, Health, and Safety Guidelines on Electric Power Transmission and Distribution. Framework for Applying Environment Safeguards to Rural Energy II Project. Environmental Impact Assessment Thua Thien Hue Province - Final Page 6

10 2.0 Project Description 2.1 Main Features of Project Medium Voltage System * Distribution substations: * Total of new substations: 83 substations with capacity of 11,728 KVA * Unchanged location substations: 22 substations with schedule capacity of 6,600 KVA * Displace substations : 16 substations with schedule capacity of 1,150KVA Types of substations include mounted, grounded or indoor types, upon every specific conditions in each locality. Voltage levels include 35/0.4 kv, 22/0.4 kv, 15/0.4 kv, 10/0.4 kv; 6/0.4 kv, 22(35)/0.4 kv, 22(15) kv, 22(10) kv, and 22(6) kv. The substation capacities include 400, 320, 250, 180, 160, 100, 75, 50, and 31.5 kva. * Distribution MV Lines: * Total of MV distribution lines : 57.8 Km Low Voltage System The main features of the LV system are summarised as below: * 3 phase separated : m * 1 phase separated : 6296 m *_3 phase shared :_60674 m * New construction: * Rehabilitation: * 3 phase separated: 510 m * 3 phase separated: 5564m * 1 phase separated: 2820 m * 1 phase separated: 3476 m * 3 phase shared : m - 3 phase shared : m * Total of Meters: sets 2.2 Socio-Economic Targets of Project The REII project in Thua Thien Hue will rehabilitate and extend the existing power networks in 32 communes of six districts. The project is expected to give socio-economic benefits to local people. Firstly, it will supply power more efficiently for agriculture as well as non-agriculture development. There is a requirement for a stable power supply with sufficient capacity for post-harvest processing of agricultural products in Thua Thien Hue province. The service sector including rice milling and husking, welding, etc will expand once the network is rehabilitated and extended. The cultural life of local people can also be improved by access to an improved power system. Reducing power losses of the existing network in 32 communes will reduce the price of electricity. The power system rehabilitation and expansion will allow the forecast demand for 2020 to be met. 2.3 Project Schedule: Working schedule for the Project as Table (included) Environmental Impact Assessment Thua Thien Hue Province - Final Page 7

11 WORKING SCHEDULE FOR THE RURAL ENERGY II PROJECT- THUA THIEN HUE PROVINCE Year Stt Month Activities I Preparation phase I Preparati on of Investmen t report 2 Approval of Investment report 11 implementation phase I Preparation of technical de-sign Approval of techinical design - 3 _Design and implementation of land acquisition - A. Procurement, bidding packare~ I Preparation of biddinig documents 2 No objection letter an d ap-proval of-the WB 3 Bidding i'nvi'tation 4 Bidding openning 5 Pricing 6 Approval of the WB on the pri-ce Preparation of the summary constract 8 Approval of the Contract by the WB 9 Contract negotiation Contract signing... II 1 Implementation o-f th-e -contr-act- B. Construction package -_ I1 -P-reparatio-n of docume-nt for con-struction pack,age 2 Approval o f the -WB on the price -3 Bid dding invitation 4 Bid opening- _ 5 Determination_of the price of the package 6 Approval of the WB on the-price, - Preparation of summary contract- Contract approval by the WB lontract negitiation ontract signing L mtract implementation and commi'sslioning Assessment Thua Thien Hae Provinice - Final

12 3.0 Baseline Conditions 3.1 Natural Environment of Thua Thien Hue Province Demographic Information Thua Thien Hue province is located in the Central region of Vietnam. It is situated between the provinces of Quang Tri to the north and Da Nang to the south. In the West, Thua Thien Hue province has national border with Laos PDR. According to the Thua Thien Hue Statistical Yearbook 2003, the province has 1 city, 8 districts, 121 communes and 29 precincts. The total population is 1,105,494 (31 December 2003) of which are male. The population density is 219 persons/km 2. 69% of Thua Thien Hue population is rural. The remaining 31% is urban. The fertility rate in 2003 was 1.8%, the mortality rate 0.4% and the natural population growth rate was 1.4%. The table below summarises the demographic information for Thua Thien Hue province: Table 2: Demographic Information, Thua Thien Hue Province, to 31 December 2003 Districts Number of Number of Area (km 2 ) Population Population Density Communes Precincts (pers) (Pers/km 2 ) Hue City ,798 4,463 Phong Dien , Quang Dien , Huong Tra , Phu Vang , Huong Thuy , Phu Loc , A luoi , , Nam Dong , Source: The Statistical Yearbook 2003, Thua Thien Hue Province, Central Vietnam Topography Thua Thien Hue has a total land area of 5, km 2, consisting of three distinct regions: mountainous, plain and coastal. Typical mountainous and upland areas include A Luoi and Nam Dong districts. The districts: Phong Dien, Huong Tra, Huong Thuy and Phu Loc are mountainous in the western part of the province (more than 70% of the total area of these districts) and the other part in the East of these districts are plain. Quang Dien and Phu Vang districts are half plain and half coastal areas. The topography is diverse and gradually slopes from the West to the East. Thua Thien Hue has 70 km seacoast and with many lagoons areas, of which Tam Giang Lagoon is the largest. Huong Tra and Phu Vang districts have a large area of lagoon. Unlike Quang Tri, the population in the coastal area of Thua Thien Hue is dense Climate Thua Thien Hue has tropical monsoon climate with four seasons of which two seasons are distinct - dry and rainy. The dry season is from January to August and the rainy season is from September to December. Compared to Quang Tri, the climate in Thua Thien Hue is more temperate. The average temperature in Thua Environmental Impact Assessment Thua Thien Hue Province - Final Page 9

13 Thien Hue is C ( Quang Tri is 25.5 C). The highest temperature is in June; with the average temperature over the summer period of 38 C. The number of sunshine hours in 2003 was 1,930 hours (the average sunshine hours over the last five years was 1,775.9 hours). The number of days with rain averages 163 days per year. In 2003, the rainfall days were less than average at 150 days. Average rainfall is 2,449.3 mm/year and is considered high, the average humidity is 85.8% Water Quality Thua Thien Hue has a number of rivers, including the 0 Lau (considered to be a natural border with Quang Tri province), Huong, Nhu Y, Dai Giang, etc. All of the rivers originate from the western mountains and flow eastwards to the sea. Rivers in this area are small, flow swiftly in the rainy season with low discharge in the dry season. There are various natural lakes, and salt water lagoons at the land/sea periphery. These lagoons stretches almost continually along the province coast (from Dien Hoa commune, Phong Dien District to Loc Binh commune, Phu Loc District, estimated at about 40 km in length ). These are rich surface water resources in this Province. As observed and reported by the Thua Thien Hue DoRE, the surface water is not polluted since the use of fertilisers, pesticides and waste/sewage discharge are controlled. There are no surveys of ground water available but it is estimated there is an adequate resource, which has not been polluted Air Quality According to the environmental data supplied by Thua Thien Hue DoRE, air quality in both urban and rural areas is good. The concentrations of toxic pollutants such as S02, NO 2, C02 at all monitoring sites are much lower than the permissible Standard for Ambient Air Quality (TCVN ). There are only 3 sites where air pollution has been noted: a) some communes in Phong Dien and Huong Tra Districts with a large numbers of brickworks. Dust and smoke pollution is serious in these communes; b) Phu Bai Industrial zone; and c) mining sites (including rock quarries and metal ore mines). Air pollution will become more prevalent in future if prevention measures are not taken Mineral Resources Thua Thien Hue has poor mineral resources. The most valuable natural resource is rock and stone for construction. A small amount of gold is also available in Huong Thuy District Biological Resources Thua Thien Hue is rich in biological resources. The province has an area of 152,332 ha of forest of which, 137,450 ha is natural occurring and the remainder is plantation forest. National conservation areas approved by the Government of Vietnam include Bach Ma and Phong My, located in Phu Loc District. The province has biological diversity conservations areas in lagoons in 5 districts: Phong Dien, Quang Dien, Huong Thuy, Phu Vang and Phu Loc. An area of salt-marsh forest is conserved in Huong Thuy district, which contains many plant and animal species. Environmental Impact Assessment Thua Thien Hue Province - Final Page 10

14 In the protected areas, there are more than seven thousands plant species including primary sub-tropical forest. Some species such as Terieti cochinnhinensis, Brucea javanica, etc., are only native to the forests of Central Vietnam. The protected areas are the natural habitats of various animal species, especially Fokiennia hodgingsis - a species noted in the Red Book of Threatened Species for Vietnam. With 70 km of coast and hundreds km of rivers, Thua Thien Hue is rich in aquatic resources. Over 150 species of fish are found in the sea and rivers. 3.2 Socio-Economic Conditions, Thua Thien Hue Province Local Economy Unlike Quang Tri which is predominantly agricultural, the major component of the Thua Thien Hue economy is the service sector (43.6% of the local economy in 2003). The agricultural, forestry and fishing sector is 22.5%, the industry and construction sector is 33.9% (Thua Thien Hue Statistical Yearbook 2003). The contribution of the service sector has not changed significantly from 1995 when it was 43%, but the agriculture, forestry and fishing sector has reduced on average by 1 % per year over the last eight years ( ). In the agriculture, forestry and fishing sector, the main outputs are from cultivation (cereals and industrial crops) and fishing with the percentage of 44% and 42% respectively. Tourism is developing strongly in Thua Thien Hue and is the major component of the service sector. Within the industrial sector, manufacturing (food, cigarettes, garments, etc.) are the main contributor with more than 45%, followed by mining with 35% and the remaining percentage is gas/water supply. In the period , the annual GDP growth rate was 9.1%. The planned GDP growth rate for 2005 is 10%. (Summary Socio Economic Development Report for Thua Thien Hue PCC, 2003 and Thua Thien Hue Socio Economic Development Plan, ) Income and Poverty According to the Thua Thien Hue PPC Annual Report (2003), the average income per capita in 2003 was VND 7,175,000 (the income per capita of Quang Tri is VND 2,950,000). The per capita income has increased 25.6% from the year 2000, and is 2.1 times more than in The Province plans to increase the per capita income to USD in 2005 (equivalent to VND to ). Social stratification is widening over time. The highest income class in Thua Thien Hue now earns more than 7 times that of the lowest income class. In 2003, the percentage of households living under the poverty line is high, at 12.3% (27,000 households). It is planned to reduce this to 8% in The poor households are mainly located in rural areas and account for more than 80% of total poor households. (Mid-Term Review, Socio Economic Development Plan Thua Thien Hue PPC). Environmental Impact Assessment Thua Thien Hue Province - Final Page 1 1

15 4.0 Impacts Assessment 4.1 General A) Classification of lmoacts The Environmental Impact Assessment focuses on the major environmental issues of the Project's Most Favoured Alternative. The potential impacts of the Project's pre-construction, construction, and operation phases were assessed as being in one of five categories: NO IMPACT. The potential impact of the Project activity is assessed as NO IMPACT if the project activity is physically removed in space or time from the environmental component. MAJOR IMPACT. An impact is said to be MAJOR if the project activity has potential to affect an environmental component. Major impacts could be "Major Negative" or "Major Positive." The following criteria were used to determine whether a given impact is MAJOR: Spatial scale of the impact (site, local, regional, or national/ international); Time horizon of the impact (short, medium, or long term); Magnitude of the change in the environmental component brought about by the Project activities (small, moderate, large); Importance to local human populations; Compliance with national, provincial, or district environmental protection laws, standards, and regulations Compliance with Vietnam's international commitments. These include the Convention on Wetlands of International Importance especially as Waterfowl Habitat (RAMSAR), the Convention Concerning the Protection of the World Cultural and Natural Heritage (World Heritage Convention), and the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES); and Compliance with World Bank guidelines, policies, and regulations. MINOR IMPACT. If an impact occurs but does not meet the criteria for a Major Impact it is assigned the category MINOR. Minor impacts could be "Minor negative" or "Minor Positive." MITIGABLE IMPACT. The potential impact of a project activity on an environmental component is said to be MITIGABLE if there is potential for a major negative impact and the proposed mitigation measure will prevent the impact or reduce the impact to acceptable levels. Environmental Impact Assessment Thua Thien Hue Province - Final Page 12

16 B) Identification of Potential Impacts of the Project The Project will play an important role in the electrification program and in implementation of the policy of poverty alleviation of 32 communes within 6 districts of Thua Thien Hue province. It will also promote the policy of industrialization and modernization of the Government of Vietnam as well as create a great opportunity for overall socio-economic development of the poor area. When the distribution lines are constructed, there is a trend of local people to move to live near the lines. The local people committee will have a proper planning accordingly to support the development of the areas. These planning are included: road, residential area, industrial development and farming etc. The communes/districts will move toward its planning. Beside the significant beneficial impacts, the project may cause different adverse impacts on the environment and local socio-economy. By using Environmental Screening Data Checklist and Environmental baseline Checklist as guided in Framework for Applying Environment Safeguards to Rural Energy 11 Project, The potential impacts of the Project are described in Table 3 Environmental impact Assessment Thua Thien Hue Province - Final Page 13

17 Table 3: The assessment of Project's impacts N ]amagnitude Duration Dlescription of the impacts Evaluaton of Pre-construction phase impacts I Land acquisition Medium Long - Refer to Table 4 for more information and supporting Mitigable Short 2 Impact on Project affected Medium Short - Refer to Table 4 for supporting data; Mitigable household 3 Impacts associated with clearing the Small Long - All of parts of trees that are higher than 4m need to be Mitigable ROW data; cut. The trees are still remained. - The construction work will need to excavate soil, tree cutting and other activities along the route. But main part of route is alligned along the main roads so the interference by these activities is not much and not lasts for a long time. - The lines are not going through any forested areas or areas with highly ecological value. - Trees that are to be effected are eucalyptus, coffee, pepper... these trees have economic value rather than environmental value - The Project communes are located in quite developed ares, especially in term of transportation, therefore there is no need to create new access roads for construction. - Refer to Table 5 for supporting data; 4 Health risk due to explosives, None None - Removal of landmines and chemical hazards has been No Impact chemical hazard -_- Env ronmental impact Assessment Thua Thien Hue Province - Final done for long time aho (few years after Vietnam war, after 17)_ Page 14 _

18 -S N Impact Magnitude Duration Description of the impacts Evaluation of -_ impacts 5 Loss of historical and cultural None None - The routes are designed to avoid cultural, historical No Impact properties Construction phase properties in the areas, so the Project will not effect any cultural heritages - During construction if there is any valuable historical or cultural properties are found underground, the Contractor and Project owner will report to local Department of Culture and information for further consideration. 1 Air pollution Small Short - Dust generated from soil excavation, especially during dry Minor seasons. Negative - Dust caused by movement of vehicles transporting material and equipment for Project construction. 2 Noise and vibration Small Short - Noise and vibration are caused by: equipment, material Minor transportation, project's vehicles, pole's erection and Negative cable's pulling, generators (if there is any) 3 Soil erosion Medium Short - Soil excavation for pole's foundation; Negative and En ronmental Impact Assessment Thua Thien Hue Province - Final - No soil excavation will be carried out near water bodies Mitigable that use for driking water supply. - Topography in the Project area is hilly with good vegetation cover. The routes are going along only plain or slightly sloping areas. In some places with high slope, the construction activities will be carried out in proper time (season). Soil barriers will be made to avoid soil erosion and sedimentation. Page 15

19 - Impact Magnitude Duration Description of the impacts Evaluation of. impacts - Soil erosion will be reduced when the mitigation measures are well applied. 4 Surface water contamination Medium Short - The water can be more turbid due to the soil residue from Mitigable excavation of the pole's foundation will enter to the water bodies by water run off. 5 Impacts of Temporary Access None Medium The technical teams have confirmed that no temporary No impact Roads access roads are needed. 6 Traffic disturbance Small Short - Transportation of material and equipment, soil excavation Minor and cable pulling activities will disturb the normal traffic in the areas during short period of time; - Equipment will be transported from receiving port to warehouses of the Project owners by special trucks; - From warehouses to construction the goods are transported by truck 5 to 7.5 tons and unloaded by 5 tones cranes; - Centrifugal poles are made in Thua Thien Hue. Therefore they need to be transported only in short distance. - Sand, cement are supplied by local suppliers; - Steel structures are transported from Da Nang by national roads; - Construction work will be mainly carried out along the rural roads with high gathering of poles, construction materials. It will cause disturbance to traffic in rural areas - as well. But this disturbance in quite minor since the Env ronmental Impact Assessment Thua Thien Hue Province - Final Page 16 Negative

20 Impact Magnitude Duration Description of the impacts Evaluation of impacts construction duration at each site is short, rural transportation is not very intensive and mainly by rudimentary vehicles like bicycles, motorbikes, etc. - Cable pulling crossing the roads can cause disturbance to transportation also. But scaffolds are required in these crossing sections and will reduce the traffic disturbance. 7 Solid waste generated from soil Small Short - The soil and construction materials can remain in the site; Negative and excavation and Foundation works - Certain amount of soil may remain in the construction mitigable -_ sites from excavation or filling up of the foundation.these soils can be used for filling up the gardern or low places in the surrouding areas; - Solid watse that might cause from construction work need to be removed from the sites. - Contractors need to commit to return the working sites to the original conditions and clean up the construction sites. 8 Oil hazardous waste contamination None Long - Old transformers in the Project area are kept unchanged. No impact - No PCBs containing oil or another hazardous chemical is allowed to used by this and other Project - Oil refilling should be done in workshop 9 Environmental impacts caused by Small Medium - There is only one construction team in each commune. Mitigable construction workers - Camp for workers is planned to created in the area of Commune people committee. Camping site is normally consisted of one tent, one warehouse (70m 2 ) and one gound about 200 m 2. Env ronmental Impact Assessment Thua Thien Hue Province - Final Page 17

21 Impact Magnitude Duration Description of the impacts Evaluation of -.impacts - Some disease can be transfered from workers to local people and vice versa. 1 Impacts on Community No Long No affect local infrastructure such as telephone lines, Infrastructures irrigation system, etc. 1 Health and Safety Medium Short - Accidents might happen during construction if the safety Mitigable -_ Operation phase issues are not well considered. - Accidents might happen not only for workers but also for local peoles. For example: some obiect miqh fall down. 1 Development and poverty alleviation Large Long - Increase the quality of life for local peoples. Major Positive - Support agricultural production, shrimp farming and other services including health and education 2 Impacts on Community None Long - There will be no impacts on telephone lines or other No impact Infrastructures systems as the telephone lines and other communication networks have been seperately established. Because with voltage just up to 22 kv, scared population density the EMF is not a problem. - Impact aricrafts: The height of pole is much less than 50 m (from 8.5 to 10 m). There will not be any problem with avian and aircrafts. 3 Impacts on Local Flora and Fauna None Long There are no wetland areas near project communes, and No impact Env ronmental Impact Assessment Thua Thien Hue Province - Final bird electrocutions are unlikely. The local birds are small and are not large enough to come into contact with two adjacent overhead MV conductors. Page 18

22 Impact Magnitude Duration Description of the impacts Evaluation of -_ Habitat fragmentation and increase access to wild lands: - No new road or access roads are constructed - No line crossing the forest, wetland or other natural habitats. impacts 4 Health and safety Small Long - Electric shock and accidents occurring if the proper safety Mitigable issues are not paid proper attention Env ronmental Impact Assessment Thua Thien Hue Province - Final Page 19

23 4.2 Pre-construction Phase Impacts Medium Voltage System (i) Project Affected Households The inventory identified that, for MV rehabilitation and extension, the number of Project affected households is 1,225; where LV is strung below the MV on the same pole this is considered as MV; of which, 422 households suffer land impact. The remaining numbers of households households will require tree-cutting in the right of way. The details for project communes are as below: It should be noted that there are no ethnic minority households among the project-affected households in Thua Thien Hue, MV rehabilitation and extension. However there are some ethnic households that are affected by the LV network rehabilitation. (ii) Land Affected The technical team and EIA team have confirmed there are no house structures affected nor resettlement required for rehabilitating and extending the MV network. The land affected households as identified above comprise acquisition of usually from 6m 2 to 10 m 2 of land. This land will be used to locate substations, pole foundations, power network corridors and right of ways. This is a permanent loss of land. The temporary loss of land is considered insignificant; this is explained further in the RAP. Since the MV rehabilitation and extension follows existing line routes, the land area affected is small. Further more the original MV lines were constructed in the right of way associated with existing main roads. As a result a significant portion of the MV line route is on public land. The total area of land acquired for MV rehabilitation and extension in Thua Thien Hue for this Project is 9,131 m 2. Public land acquired for the project accounts for 4,340.5 m 2 or 47.5% of the total. Agricultural and garden land affected is 3,523 m 2, or 38.6%. The remaining land affected is residential, including 1,267.5m 2, or 13.9% of the total land affected by MV rehabilitation and extension. The amount of land affected by for MV rehabilitation and extension is not significant, it is however considered a negative impact on the environment. Environmental Impact Assessment Thua Thien Hue Province - Final Page 20

24 Table 4: Land Affected Communes, MV network - Inventory July, 2004 Names of Communes Total of Agricultural and No. of Residential Land No. of affected Affected Garden Land affected Affected (m 2 ) households Households Affected (m 2 ) households Phu Vang Phu An Vinh Ha Phu Thai Phu Ho Vinh Phu QuangDien Quang Phu Quang Thai Quang Ngan Quang Tho Quang Phuoc Quang Loi Phong Dien Phong Hoa Phong Thu Phong Binh Phong An Phong Son Huong Tra Huong Ho Huong Chu Huong Xuan Huong Toan Huong Vinh Huong Phong Huong Thuy Thuy Chau Thuy Tan Thuy Phu Thuy Thanh Phu Loc Loc Bon Loc Tien Loc An Loc Son Loc Tri Loc Dien Environmental Impact Assessment Thua Thien Hue Province - Final Page 21

25 (iii) Impacts Caused by Clearing the ROW The clearing of ROW will mainly involve cutting and selectively pruning trees. The survey identified that for MV rehabilitation and extension, 1310 households are affected with trees to be cut. All trees under the ROW that are higher than 4 m and the trees nearby that are higher than 6 m will be cut and compensated. This is considered to be the worst Project impact. After being cut, trees are usually gathered and burnt on site. This may create waste and uncontrolled fires. This negative impact, however, is considered to be minor Environmental Impact Assessment Thua Thien Hue Province - Final Page 22

26 Table 5: Tree Affected Communes, MV network- Inventory July, 2004 Names of N of N of N of Bread N of Orange, Limes, N of N of Mac- Other Communes Bananas Bamboos Fruit Trees Sandalwood Grapefruit Cajuput choai' Trees Phu Vang Phu An Vinh Ha Phu Thai Phu Ho Vinh Phu Quang Dien Quang Phu Quang Thai Quang Ngan Quang Tho Quang Phuoc Quang Loi Phong Dien Phong Hoa Phong Thu Phong Binh Phong An Phong Son Huong Tra Huong Ho Huong Chu Huong Xuan Huong Toan Huong Vinh Huong Phong Huong Thuy Thuy Chau Thuy Tan Thuy Phu Thuy Thanh Phu Loc Loc Bon Loc Tien Loc An Loc Son Loc Tri Loc Dien Trees used to prop up pepper trees. Local people call the trees "Mac", is some areas they are also called "Choai". The trees are popular in the Central Region as they are straight and strong Environmental Impact Assessment Thua Thien Hue Province - Final Page 23

27 (iv) Cultural Property Thua Thien Hue has many historic and culturally significant properties. It was observed that that there is at least one culturally significant property in every project commune. For example, Phong Hoa (Phong Dien District) has 28 houses with old style tiling which were originally built 500 years ago; Thuy Thanh (Huong Thuy District) has a double tiled-bridge and Van The Village Common House; Ton That Thuyet Temples are located in many communes, etc. However, it is confirmed that the MV rehabilitation and expansion will not impact any cultural property. That is because the rehabilitation and extension of MV will be carried out based on the existing network, mostly along the roads and adjacent to residential areas. All culturally significant properties have been previously electrified. The MV rehabilitation and expansion is expected by local people to offer better lighting for these places. We therefore do not anticipate any negative impact. An additional reason that supports this is that one of the criteria for designing the network alignment is to avoid sensitive areas - including cultural significant property. - The routes are designed to avoid cultural, historical properties in the areas, so the Project will not effect any cultural heritages. - During construction if there is any valuable historical or cultural properties are found underground, the Contractor and Project owner will report to local Department of Culture and information for further consideration. (v) Health risks Related to Explosives Removal of landmines and chemical hazards has been done for long time ago (few years after Vietnam war, after 1975). This is considered a no impact. Furthermore, Project activities will mainly carried out along the existing power network or in well developed areas so there will not be no risk of landmines or explosives. Environmental Impact Assessment Thua Thien Hue Province - Final Page 24

28 4.2.2 Low Voltage System (i) Project Affected Households The LV rehabilitation and extension in Thua Thien Hue will affect 5801 households, of which, 803 households will be affected by the loss of land and 4998 households will be affected by having trees cut down. Further details on the impact on households can be found in the RAP. This is a mitigatable impact, but it is considered to be the most negative impact for the LV rehabilitation and extension component of the project. There are some ethnic minority households among the project-affected households. Particularly, there are 8 ethnic households (Van Kieu ) in Loc Bon Commune with 39 persons, and 7 ethnic households of 42 persons (Muong) in Loc Tri commune. There are no significant differences in the living arrangements of the majority Kinh people and the ethnic minority households in these communes. The houses belonging to the ethnic minorities are not located separately or clustered but intermingled amongst the Kinh. There are 14 houses that will be affected by the LV rehabilitation and extension. The impact, however, is not serious as the LV will pass near the roof of the houses. The front of these houses will need to be altered. No resettlement is required for the LV rehabilitation and extension. (ii) Land Affected The total area of land affected by the rehabilitation and extension of the LV network is 21,525 m 2. The compensation details can be found in the RAP. The public land affected will be 11,039.5 m 2, which is 51.3% of the total land affected. The area of agricultural and garden land affected is 7,593 m 2, which is 35.3% of total land affected. The remaining is residential land with an affected area of 2,892.5 m 2, equal to 13.5% of the total land loss for LV rehabilitation and extension. This is a negative project impact but it is mitigatable by compensation. Environmental Impact Assessment Thua Thien Hue Province - Final Page 25

29 Table 6: Land Affected Communes, LV Network - Inventory July, 2004 Names of Communes Affected Agricultural and No. of affected Residential Land No. of affected Households Garden Land households Affected (m 2 ) households Affected (m 2 ) Phu Vang Phu An Vinh Ha Phu Thai Phu Ho Vinh Phu Quang Dien Quang Phu Quang Thai Quang Ngan Quang Tho Quang Phuoc Quang Loi Phong Dien Phong Hoa Phong Thu Phong Binh Phong An Phong Son Huong Tra Huong Ho Huong Chu Huong Xuan Huong Toan Huong Vinh Huong Phong Huong Thuy Thuy Chau Thuy Tan Thuy Phu Thuy Thanh Phu Loc Loc Bon Loc Tien Loc An Loc Son Loc Tri Loc Dien Environmental Impact Assessment Thua Thien Hue Province - Final Page 26