Summary of the Preliminary Study for Grant Aid Project

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Summary of the Preliminary Study for Grant Aid Project 1. Title of the Cooperation Project The Project for Extension of Selabam Hydropower Plant in Lao People's Democratic Republic 2. Categorization and its Reason 2.1 Categorization: Category B 2.2 Reason: (1) As a result of the Preliminary Study, it was reconfirmed that no involuntary resettlement is occurred, and the proposed project site is not in and around the National Biodiversity Conservation Area. (2) In the course of the Preliminary Study, a consultation meeting initiated by the Electricite du Laos (EDL) was held. Individual hearings from communities were conducted by EDL and the Preliminary Study Team. Judging from the voices from communities, the proposed project was confirmed to be accepted by communities around the proposed project site. (3) Change of river flows both upstream and downstream of Sedon River is not expected, because the existing weir is kept on same level. (4) The proposed project is required an IEE (Initial Environment Examination) in accordance with the Regulation on Environment Assessment in the Lao PDR. (The regulation is under the process of revision as of November 2008). 3. Outline of the Location The Project site is located in Selabam, Sanasomboun District, Champasak Province. 3.1 Topography Champasak Province is situated in the southern part of the Lao PDR, sharing borders with Thailand to the west, Salavan, Sekong and Attapeu provinces to its north and east, and Cambodia to the south. The province has ten districts (Bachieng, Champasak, Khong, Mounlapmok, Pakse, Paksong, Pathoumphone, Phonthong, Sanasomboun, and Sukhuma) and the total land area of 15,415 square kilometers. Champasak is the largest province in the Lao PDR. (Source: A guide to Champasak, LNTA-ADB, Mekong Tourism Development Project, 2006). 3.2 Population The Population of Champasak Province in 2005 was 607,370, or some 39.4 people per square kilometer. Most people in Champasak live in small rural villages and practice agriculture, livestock raising, and fishing as their main occupations. The main ethnic makeup of the province is Lao Loum or Lowland Lao, with Lao as their main language and paddy rice farming and fishing as their traditional livelihoods. In addition to this main group, there are an estimated 17 ethnic minority groups in the province that are mostly classified as Mon-Khmer, known for living in hilly regions of the country and practicing rotating agriculture. (Source: A guide to Champasak, LNTA-ADB, Mekong Tourism Development Project, 2006).

3.3 Meteorology In Laos, there are three distinct seasons; rainy (May to October), cool (November to February) and hot (March to April). During the rainy season, the country is very green and cool, with emerald rice paddies and forested mountains stretching as far as the eye can see. In November, the rains give way to the cool season and it gets quite hot in March and April. The climate in Champasak Province is typically warmer than that of Vientiane, with temperatures ranging from 16 degrees to 35 degrees. However, the Bolaven Plateau, in particular, is known for its relatively mild climate due to its high elevation, with temperatures 2-3 degrees cooler than Pakse. The Bolaven Plateau is also the most rained on area of Laos, getting up to 3,700mm per year. (Source: A guide to Champasak, LNTA-ADB, Mekong Tourism Development Project, 2006). 3.4 Nature There are two main forest types in Champasak Province. First are the dry deciduous forests, which are located mainly in the province s northern region, in the Phou Xieng Thong National Protected Area (NPA) and parts of the Bolaven Plateau, and its south-western corner bordering Thailand. These forests have rather tall, straight trees with large leaves, which typically lose their foliage during the dry season (November to April). On the edges of the Bolaven Plateau and in the province s south-eastern region, mainly Xe Pian NPA, are large tracts of evergreen jungles, which stay green all year and are valued for their rich biodiversity in both plant and animals species. (Source: A guide to Champasak, LNTA-ADB, Mekong Tourism Development Project, 2006). 4. Legal Framework of Environmental and Social Considerations 4.1 Law Relative laws, framework and regulations refer to Annex-1. 4.2 Projects subject to Environmental Impact Assessment (EIA) The Article 8 of Environment Protection Law ( NO.02-99/NA, April 1999) stipulates that development projects with potential environmental impact shall submit environmental assessment report in accordance with the regulations by the responsible agencies for those projects. 4.3 Procedure of EIA Regulation on Implementing Environmental Assessment for Electricity Projects in Lao PDR (NO.447/MIH, November 2001) refers to implement environmental assessment requirements and procedures. This regulation stipulates the procedure of IEE and EIA. All projects are subject to environmental screening and then proceed for IEE that examines whether or not it is necessary to conduct EIA. Public consultation is held 2 or 3 times during the preparation of IEE and EIA. Environmental Standard Management for Electricity Project (NO.0366 MIH.DOE, June 2003) refers to details of environmental Screening.

5. Outline of Relevant Agency and Institution which implement Project, EIA and so on 5.1 Responsible and Implementing Agencies of the Project The responsible agency is Department of Electricity (DOE), the Ministry of Energy and Mines (MEM). The implementing agency is Electricite du Laos (EDL). 5.2 Agency setting the principles and procedures for Environmental Impact Assessment Environmental control of the Lao RPD is executed by Department of Environment and Social Impact Assessment of Water Resources and Environment Administration (WREA) (previously Science Technology and Environment Agency STEA and renamed WREA in November 2007) of the Prime Minister s Office. In July 2007, Water Resources and Environment Agency (WREA) was established as EIA approval entity, taking over the department which is responsible to environmental issues under Science and Technology and Environmental Agency. Accordingly, EIA related regulation established by STEA was under the process of revision as of November, 2008. 6. Outline of the Project 6.1 Proposed Project The objective of the Project is to extend the capacity of Selabam Hydropower Plant (HPP) to enhance the domestic electricity supply and promote electrification in the southern area of Lao PDR. Items finally requested by GOL are as table 1. Table 1 Finally requested items by GOL Facilities Items Civil Engineering - Newly installed headrace channel. Facilities - Penstock. - Tailrace. Indoor generating facilities arrangement - A semi-underground structure for the new power house besides existing unit No. 1-3 power house. in unit No. 5 Turbine and Generator - Installation of new generator unit (No. 5) with output of 9.7 MW (12.1 MVA) and turbine output 10.1 MW. Switchyard equipment and transmission line - Switchgears for the unit No.1-3 and for the unit No.4 will be completely replaced and equipment arrangement will be planned together with the installation of new switching equipment for unit No. 5. 6.2 Analysis of Alternatives Alternatives including 1) Original request, 2) Finally requested plan, 3) Plan written in Feasibility Study, and 4) Do nothing were compared. As a result of the Preliminary Study, above 2) Finally requested plan was selected because of less environmental and social impacts. 7. Adverse Environmental and Social Impacts

7.1 Adverse Impacts The possible adverse impacts that may be caused by the proposed project are as the following table. Table 2 Possible Adverse Impacts No Impacts Rati Brief Description ng 1 Involuntary Resettlement No resettlement is expected since the proposed project is implemented in the existing Hydropower Plant. 2 Local economy such as No impact is expected since the existing weir is kept on same employment and livelihood, etc. level. Therefore, water level of upstream is not changed. No impact on navigation and fishing activity of downstream are expected since no excessive water intake from Sedon River is planned. 3 Land use and utilization of local resources 4 Social institutions such as social infrastructure and local decision-making institutions 5 Existing social infrastructures and services 6 The poor, indigenous and ethnic people No impact is expected since land change for civil work is minimum. Loss of farming area is not expected since the existing weir is kept on same level. No impact on navigation of downstream is expected since no excessive water intake from Sedon River is planned. No impact on ferry and irrigation facilities of downstream are expected since no excessive water intake from Sedon River is planned. No impact is expected since minority people dose not live in and around proposed construction site. 7 Misdistribution of benefit and damage No possible misdistribution of benefit and damage occur. 8 Cultural heritage No impact is expected since no cultural and historical heritage exists in and around proposed construction sites. 9 Local conflict of interests No possible local conflict of interests occurs. 10 Water Usage or Water Rights and Rights of Common No impact is expected since water rights, fishery right and rights of common are not established in and around proposed construction sites. 11 Sanitation B Sanitary condition around construction site likely to be unfavorable during construction if proper sanitary facilities such as temporally toilet and waste bin are not prepared. 12 Hazards (Risk) Infectious diseases such as HIV/AIDS Natural Environment 13 Topography and Geographical features B Possible infectious diseases at the construction phase due to increase of construction workers, if proper awareness program for preventing infectious diseases is not implemented. No impact is expected since land change for civil work is minimum. 14 Soil Erosion B Possible soil erosion during rainy season if improper land cut and land mound is conducted. 15 Groundwater No impact is expected since groundwater is not utilized in the course of construction. 16 Hydrological Situation No impact is expected to downstream of Sedon River since no excessive water intake from Sedon River is planned. 17 Coastal Zone (Mangroves, Coral reefs, Tidal flats, etc.) No impact is expected since proposed project is not planned along coastal zone. 18 Flora, Fauna and Biodiversity B Serious impact on flora is not expected since land change for civil

work is minimum. No impact is expected on fish habitats since no excessive water intake from Sedon River is planned. However, possible negative impact on fishes if turbidity is excessive due to effluent from civil work during dry season. 19 Meteorology Change of micro-meteorology is not expected since construction structure is small scale. 20 Landscape No considerable change of landscape is expected since construction structure is small scale. 21 Global Warming C Extent of impact is unknown at present stage. However, CO2 emission likely to increase due to operation of construction vehicles during construction phase. Pollution 22 Air Pollution B Atmospheric pollutant likely to increase during construction phase. 23 Water Pollution B Possible water pollution by accidental oil spillage during construction phase. 24 Soil Contamination B Possible water pollution by accidental oil spillage during construction phase. Soil contamination likely to have due to usage of improper construction equipments and vehicles. 25 Waste B Increased litter during construction period due to increase of construction workers. Generation of soil and sand, and construction waste likely to increase during construction phase. 26 Noise and Vibration B Noise and vibration occur during construction period due to increase of traffic volume for construction, and occasionally blasting work. 27 Ground Subsidence No impact is expected since ground in and around proposed site is firm. 28 Offensive Odor B Possible offensive odor by emissions from construction vehicles during construction phase. 29 Bottom sediment B Possible bottom sediment deterioration by accidental oil spillage and inflow of soil from construction site during construction phase. 30 Accidents B Possible traffic accidents due to increase of construction vehicles during construction phase. Rating: A: Serious impact is expected. B: Some impact is expected. C: Extent of impact is unknown (Impacts may become clear as study progresses.) No Mark: No impact is expected. 7.2 Adverse Impacts at each phase Adverse Impacts that may be caused by the proposed project at each phase are as the following table. Table3 Matrix of adverse impacts at each phase Planning Phase Construction Phase Operation Phase No. Likely Impacts Overall Rating Land acquisition Change of Land use plan, Control of Rights on Fishing and Navigation, and Water Use. Removal of existing facility Cutting trees and change of vegetation Operation of Construction Equipment and Vehicles Construction of new facilities Restriction of the economic and other activities such as fishing, navigation, and etc. around river Increase number of construction workers Water Sharing of Sedon River In taking excessive water from Sedon River Appearance/ Occupancy of facility and related structures

Social Environment: Natural Environment Pollution 1 Involuntary Resettlement 2 Local economy such as employment and livelihood, etc. 3 Land use and utilization of local resources 4 Social institutions such as social infrastructure and local decision-making institutions 5 Existing social infrastructures and services 6 The poor, indigenous and ethnic people 7 Misdistribution of benefit and damage 8 Cultural heritage 9 Local conflict of interests 10 Water Usage or Water Rights and Rights of Common 11 Sanitation B B 12 Hazards (Risk) B B Infectious diseases such as HIV/AIDS 13 Topography and Geographical features 14 Soil Erosion B B 15 Groundwater 16 Hydrological Situation 17 Coastal Zone 18 Flora, Fauna and Biodiversity B B 19 Meteorology 20 Landscape 21 Global Warming C C 22 Air Pollution B B 23 Water Pollution B B B 24 Soil Contamination B B 25 Waste B B 26 Noise and Vibration B B 27 Ground Subsidence 28 Offensive Odor B B 29 Bottom sediment B B 30 Accidents B B Rating: A: Serious impact is expected. B: Some impact is expected. C: Extent of impact is unknown (Impacts may become clear as study progresses.) No Mark: No impact is expected. 8. Mitigation and Monitoring for Key Impacts The mitigation measures for the key impacts show in table 4. Table 4 Assumed Mitigation Measures Likely Rating Impact severity (e.g. Assumed mitigation measures Impacts magnitude, area extent, duration, frequency, reversibility, likelihood of occurrence) Sanitation B Sanitary condition around To install temporary toilet facilities for

Infectious diseases such as HIV/AIDS B construction site likely to be unfavorable during construction if proper sanitary facilities such as temporally toilet and waste bin are not prepared. Possible infectious diseases at the construction phase due to increase of construction workers, if proper awareness program for preventing infectious diseases is not implemented. Soil Erosion B Possible soil erosion during rainy season if improper land cut and land mound is conducted. Flora, Fauna and Biodiversity B Serious impact on flora is not expected since land change for civil work is minimum. No impact is expected on fish habitats since no excessive water intake from Sedon River is planned. However, possible negative impact on fishes if turbidity is excessive due to effluent from civil work during dry season. Air Pollution B Atmospheric pollutant likely to increase during construction phase. Water Pollution Soil Contamination B Possible water pollution by accidental oil spillage during construction phase. B Possible water pollution by accidental oil spillage during construction phase. Soil contamination likely to have due to usage of improper construction equipments and vehicles. Waste B Increased litter during construction period due to increase of construction workers. Generation of soil and sand, and construction waste likely to increase during construction phase. Noise and Vibration Offensive Odor B Noise and vibration occur during construction period due to increase of traffic volume for construction, and occasionally blasting work. B Possible offensive odor by emissions from construction construction workers by contractor. To implement awareness activities to construction workers to promote sound solid waste management such as proper segregation and disposal. To implement proper guidance to construction workers by contractor to prevent infectious diseases. To adopt the existing best practice by contractor to avoid soil erosion from construction site during rainy season. To adopt the existing best practice by contractor to reduce soil run off from construction site during dry season. Degree of turbidity needs to be under tolerance level for fishes. To provide proper construction and heavy vehicles in order to reduce the volume of emission gas by contractor. To maintain construction and heavy vehicles properly. Regular watering on unpaved access road to prevent dust. Good practice such as lower speed driving and stopping unnecessary idling of construction vehicles. To provide proper construction and heavy vehicles in order to prevent water pollution by contractor. To maintain construction and heavy vehicles properly. To adopt the best practice to minimize soil run off from construction site. To prevent run off from concrete effluent to Sedon River. To provide proper construction and heavy vehicles in order to prevent soil contamination by contractor. To maintain construction and heavy vehicles properly. To prepare proper construction plan to minimize waste from construction works. To implement awareness activities to construction workers to promote sound solid waste management such as proper segregation and disposal. To inform construction schedule to residents. To use construction and heavy vehicles with low noise type. No construction works at night. To provide proper construction and heavy vehicles in order to prevent soil

Bottom sediment vehicles during construction phase. B Possible bottom sediment deterioration by accidental oil spillage and inflow of soil from construction site during construction phase. Accidents B Possible traffic accidents due to increase of construction vehicles during construction phase. contamination by contractor. To maintain construction and heavy vehicles properly. To provide proper construction and heavy vehicles in order to prevent soil contamination by contractor. To maintain construction and heavy vehicles properly. To consult with communities and police station to avoid traffic accidents. To disseminate right information related to construction schedule for communities along road side, schools, and hospital. To assign traffic conductor at schools to avoid traffic accidents. 9. Whether another Environmental and Social Considerations Studies is required at this stage or not? Responsible and implementing agencies (Department of Electricity DOE, the Ministry of Energy and Mines MEM, and Electricite du Laos EDL ) will start necessary action such as conducting an Initial Environment Examination (IEE) based on the Regulation on Environment Assessment in the Lao PDR and obtain license of environmental certificate. Basic Design Study Team shall confirm the progress of above action to meet requirements of JICA Guidelines for Environmental and Social Considerations. 10. Consultation Meeting for discussion on the Project for Extension of Selabam Hydropower Plant organized at Selabam Hydropower Plant Meeting Room in 23, October 2008, during 9 11:30 am with participation of representatives of Selabam Hydropower Plant surrounding upstream and downstream Villages, Sanasomboun District Administration official, representative of Division of Electricity, Energy and Mines Department of Champasack Province, project related EDL staff, as well as the JICA preliminary study team were attended. The villagers were encouraged to raise their opinion and concern about the extension of Selabam Hydropower Plant. There were not significant issues or negative impacts that villagers aware off and raised at this meeting, but they requested some assistance programs for their communities as for return for some small impacts mostly deemed to occur during construction phase such as: The representative of the project villages have requested to the project for improving village access road to better condition to prevent dust during construction and transportation of construction materials so that villagers and children do not suffer health risk. These villages are Na Nai, Houa Xe, Keng Kok, Donxe and Xelabam. Women representative from Xelabam village and other village representatives requested for bridge construction program to facilitate the transportation and community use. The following village representatives have raised their request to the project for electrification program for their villages: Village Nong No, Kengmaihia, Thonghi Gnai, Thonghi Noy, Thong Theung, Lao, and as well as Keng Kok.

One participant requested to improve school facilities so that the children also could get benefit from the extension project. Xelabam Village leader has raised a request to improve existing health facility for community use. Official from Sanasomboun District commented as follow. The irrigation system will be a good assistance from the project in terms of improving rice production of project villagers. Because some villages along Sedon river side have suffered from flooding in high river flow season and damage to their rice production, and this is not sure whether this was occurred from the Sedon Hydropower plant activity. End

Relative laws, regulations and framework Annex -1 -The Article 8 of Environment Protection Law ( NO.02-99/NA, April 1999) -Regulation on Environmental Assessment in the Lao PDR (2002) -Regulation on Environmental Assessment in the Lao PDR (2008, the regulation is under the process of revision as of November 2008) -Regulation on Implementing Environmental Assessment for Electricity Projects in Lao PDR (NO.447/MIH, November 2001) -Environmental Standard Management for Electricity Project (NO.0366 MIH.DOE, June 2003)