public disclosure authorized v1 e1830 - world bankdocuments.worldbank.org/curated/en/... · eia...

Prepared by the KRLP Project Implementation Unit Provincial Department of Planning and Investment

Khammouane Provincial Government

March 4, 2008

Lao People’s Democratic Republic Peace Independence Democracy Unity Prosperity

Khammouane Provincial Government

Provincial Department of Planning and Investment

Khammouan Rural Livelihood Project (KRLP)

Initial Environmental Examination

E1830 V1

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Khammouan Rural Livelihood Project (KRLP) ii Initial Environmental Examination Khammouan Provincial Government DRAFT (3/6/2008)

Abbreviations

DDF District Development Fund DoF Department of Finance DoI Department of Irrigation DPI Department of Planning and Investment EAMP Environmental Assessment and Mitigation Plan EA Environmental Assessment EIA Environmental Impact Assessment EMP Environmental Management Plan ESS Environmental and Social Safeguards ESSF Environmental and Social Safeguard Framework FAO Food and Agriculture Organization (UN) FFS Farmer Fields School GoL Government of Lao PDR IEE Initial Environmental Examination IPDP Indigenous Peoples Development Plan IPM Integrated Pest Management KRLP Khammouane Rural Livelihood Project MAF Ministry of Agriculture and Forestry NAFES National Agricultural and Forestry Extension Service NT2 Nam Theun 2 NTPC Nam Theun 2 Power Company OP Operational Policy (World Bank) O&M Operation and Maintenance PAFO Provincial Agriculture and Forestry Office PAP Project Affected People PCS Provincial Coordination Section PDF Provincial Development Fund PMP Pest Management Plan PPD Provincial Program Director RAP Resettlement Action Plan SNV Netherlands Volunteer Organization UXO Unexploded Ordnance VLS Village Livelihoods Support WB World Bank WHO World Health Organization (UN) WREA Water Resources and Environment Administration WUG Water User Group XBF Xe Ban Fai

Khammouan Rural Livelihood Project (KRLP) iii Initial Environmental Examination Khammouan Provincial Government DRAFT (3/6/2008)

CONTENTS

Executive Summary vi

1. Introduction 2

1.1. Background 1

1.2. Purpose of the IEE 2

2. Environmental Description of the Project Area 6

2.1. Introduction 6

2.2. Physical Resources 6

Geography 6

Water Resources 7

Land and Forest Resources 10

2.3. Biological Resources 10

Aquatic Habitats and Fish Diversity 10

Protected Areas and Terrestrial Biodiversity 11

2.4. Economic Activities 12

Economic growth 12

Hydropower development 12

Use and distribution of pesticides in Lao PDR 13

2.5. Social Setting and Cultural Resources 1616

Population 16

Physical cultural resources 17

3. Overview of Potential Impacts 19

3.1. Support for Local Development and Provincial Capacity Building (Component 1) 19

General Construction Impacts 19

Safety and Unexploded Ordnance (UXO) 199

Historical and Cultural sites 19

3.2. Irrigation Development along NT2 Downstream Channel/Lower XBF (Component 2) 20

General 20

Water Availability and Downstream users 20

Dam Safety 20

Irrigation Water Quality Concerns 21

Khammouan Rural Livelihood Project (KRLP) iv Initial Environmental Examination Khammouan Provincial Government DRAFT (3/6/2008)

Increased usage of Pesticides and Fertilizers 2222

Concerns for Public Health 24

4. KRLP Environmental Management Plan 255

4.1. General KRLP Environmental Management Approach 25

Introduction 25

Application of a KRLP ESSF 26

Application of a ‘Negative List’ 27

Screening Process 27

Formal UXO Removal 29

Application of a ‘Code of Practice’ for all Construction works 30

4.2. Specific Mitigation Measures for Component 1 31

4.3. Specific Mitigation Measures for Component 2 31

Disposal of dredge materials 31

Control of the usage of Pesticides and Fertilizers 32

Application of FAO/WHO Water Quality Guidelines 33

4.4. Institutional Arrangements 34

4.5. Description of Monitoring Program 35

4.6. Implementation Schedule 36

4.7. Cost estimate and Sources of Funds 36

5. Description of Public Involvement 43

5.1. Consultations 43

5.2. Public Disclosure 43

5. Conclusions and Recommendations 443

References 455

Figures Figure 1 - Overview map of the Khammouane Province.................................................... 2 Figure 2 - Overview map of the potential KRLP irrigation areas....................................... 4 Figure 3 – Topographic map of Potential Irrigation Areas (STILL TO DRAW)............... 5 Figure 4 – Value and Volume of Pesticide usage in Asia................................................. 15 Figure 5 - Comparison of Pesticide usage in Asia ............................................................ 15 Figure 6 – Location map of the Tha Thot reservoir, retention dam and intake ................ 21 Figure 8 – Location map of the Khammouane Districts ................................................... 36 Figure 9 – Topographic map of the Tha Thot Irrigation area (STILL TO DRAW) ......... 47

Khammouan Rural Livelihood Project (KRLP) v Initial Environmental Examination Khammouan Provincial Government DRAFT (3/6/2008)

Tables Table 1 - List of the Areas for Potential Downstream Irrigation ........................................ 3 Table 2 - Summary of Mean Annual and Monthly Flows (in m3/s)................................... 8 Table 3 - Water Quality in the NamTheun/Nam Kading, Nam Kathang and XBF ............ 9 Table 4 – Overview of Poverty in the Khammouane Province......................................... 17 Table 5 - Determination of Safeguard Document Requirements...................................... 28 Table 6 – UXO safety procedures for KRLP Activity preparation................................... 30 Table 7 – Estimated costs for ensuring Safeguard Compliance........................................ 37 Table 8 - KRLP Environmental Mitigation and Monitoring Plan for Component 1 ........ 38 Table 9 - KRLP Environmental Mitigation and Monitoring Plan for Component 2 ........ 40 Table 10 - Irrigation Development of Tha Thot Area by Sub-Scheme............................. 48

Annexes Annex I – Description of Tha Thot Irrigation Scheme ..................................................... 47 Annex II – Agricultural Pest Management Practices in Lao PDR and Khammouane...... 50

Khammouan Rural Livelihood Project (KRLP) vi Initial Environmental Examination Khammouan Provincial Government DRAFT (3/6/2008)

Executive Summary

Background The Khammouane Provincial Department of Planning and Investment in collaboration with concerned agencies has requested the World Bank to support the “Khammouane Rural Livelihood Project” (KRLP). The Project Development Objective (PDO) is to strengthen the planning process and public financial management associated with decentralized delivery of services and infrastructure. The KRLP will be implemented over a period of six years (2008-2014) by multiple National and Provincial Government Agencies. Overall guidance and coordination at the Provincial level is provided by the Provincial Department of Planning and Investment. The project will be jointly implemented by Khammouane Province and the Department of Irrigation (DoI) of the Ministry of Agriculture and Forestry (MAF). This Initial Environmental Examination (IEE), which includes an Environmental Management Plan (EMP), presents the key findings and agreements of the Environmental Assessment for the KRLP, carried out during October to December, 2007. Its purpose is to ensure that environmentally sound practices have been incorporated into the project design, and possible negative impacts will be mitigated to acceptable levels. The IEE, prepared in compliance with the Lao National EA regulation and the safeguard policy guidelines of the World Bank, is based on consultations with key stakeholders, field visits to the main project areas, and study of the relevant documents and reports available. Environmental Description The Khammouane Province is located in the central part of Lao PDR between the 16°15’ and 18°15’ North parallels and the 104°40’ and 106°25’ East meridians. The total area of the Province is approximately 16,315 km2, and covers 6% of the country’s total area. The Province two river systems in central Lao PDR; the Nam Theun and the XBF; and extends from the lowlands along the Mekong River to the rugged Annamite Mountain Range along the Lao-Vietnamese border. Currently, the forested area of Khammouane is 812,600 hectares, covering 47% of the total area of the Province. Shifting cultivation is the main issue that decreases forest and soil fertility as rotations occur frequently. Apart from that, there are other constraints such as weeds, pests, animals and drought that force people to expand their shifting cultivation areas to meet their demand. Climate and the diversity of geological conditions in the area have led to an extraordinarily high diversity of species, isolation and endemism. The Annamite Mountains that form the border between Lao PDR and Vietnam are recognized as an area of global significance in terms of biodiversity. KM is a province rich in biodiversity and consists of 3 National Biodiversity Conservation Areas (NBCA): Nakai-Nam-Theun, Hin Nam No and Phon Hin Poune NBCAs. Prime Ministerial (PM) Decree 193 of 1993 established a series of corridors to connect the three NPAs to enable wildlife migration between them.

Khammouan Rural Livelihood Project (KRLP) vii Initial Environmental Examination Khammouan Provincial Government DRAFT (3/6/2008)

In general, the investments in the Province that generate most income to the province rely on exploitation of natural resources. The growth of the economy is steady, although Khammouane remains a poor province. Major economic sectors are crops, animal husbandry, fishery, forestry and hydropower. Studies suggest that pesticide use is relatively low in Laos compared to in other countries of the region, and that active promotion of pesticides is not widespread. However, it is also stated that pesticides are widely available, and that most of those for sale are highly toxic. All pesticides used in Lao PDR are imported from nearby countries such as Thailand, Viet Nam and China, and no data is available on the actual quantities. Potential Impacts Through Component 1, the KRLP will support Provincial and District Governments with block grants to finance a group or package of small civil works. No major environmental and social impacts are expected. Component 1 of the KRLP aim to improve rural livelihoods through small scale grants, are designed with a participatory assessment and implementation approach, and have capacity-building as a major focus. However, at the time of the KRLP preparation, details of the activities and location are still to be decided upon. Some eligible small-scale civil works may involve minor negative environmental impacts due to standard construction activities. Certain supported project activities may also require minimal land acquisition or cause minor social impacts on some members of the community. Moreover, Lao PDR was subjected to heavy bombing during the Indochina war, resulting in large areas of land ridden with dangerous unexploded ordnance (UXO) throughout many parts of the country. Also for Component 2, no significant negative environmental and social impacts are expected. The proposed activities under Component 2 of the KRLP will include the rehabilitation and construction of small scale infrastructure only. Similar to Component 1, not all of the anticipated works are known at the time of the KRLP preparation. The rehabilitation and construction of eligible small-scale irrigation schemes and its subsequent operation may result in some direct and indirect negative construction impacts. Certain supported project activities may also require minimal land acquisition or cause minor social impacts on some members of the community. An increased water usage may limit water availability for the downstream users and step up the use of pesticides in the irrigated areas. Furthermore, as the quality of the water released from the NT2 reservoir is expected to decline, and considering that the water will likely also be used for other purposes, aesthetic concerns or complaints may arise. Environmental Management Plan A KRLP Environmental Management Plan has been prepared to guide the implementation of both KRLP Components. The EMP includes Mitigation and Monitoring Plans for both Components that summarize all the anticipated environmental impacts and its applied mitigation measures during the pre-design, construction and operation phase. The recommendations and proposed mitigation measures will be

Khammouan Rural Livelihood Project (KRLP) viii Initial Environmental Examination Khammouan Provincial Government DRAFT (3/6/2008)

attached to the KRLP supported grant agreements and/or bidding documents, listing briefly the mitigation measures to be applied. In general, the key features to mitigate and monitor potential safeguard issues for the KRLP include:

• Application of the KRLP ESSF for all activities requires civil works which are not yet defined at the start of the KRLP project;

• Application of a ‘negative list’ of non-eligible activities to avoid adverse social and environmental impacts which cannot be adequately mitigated or are not eligible for WB Financing;

• Training on the application of the safeguard measures and manual prepared for the project;

• Strict procedures for possible safety hazard (e.g. UXO removal); • Usage of a standard KRLP Code of Practice, to be attached to the construction

contracts and grant agreements. Specifically for Component 2, the KRLP will address the risks of increased pesticide usage through: (i) the promotion of organic farming practices, and (ii) the application of a list of pesticides not acceptable under the KRLP as part of a simple KRLP Pest Management Plan. It is considered not justified to introduce a comprehensive Integrated Pest Management program through the KRLP because: (i) the irrigation schemes to be rehabilitated by the KRLP are very small; (ii) the usage of pesticides and fertilizers in Lao PDR are low as compared to other countries, and (iii) the critical factor in Lao PDR appears to be the poor legislation and analytical capacities. Lao PDR was the only country in Asia without adequate laboratories to analyze pesticide usage (FAO, 2005). Efforts to improve pest management in Lao PDR should be addressed through larger scale national or provincial programs to improve legislation and laboratory capacity. Selected programs are already ongoing as part of the cooperation with the relevant agencies. Considering the absence of National Water Quality Standards for Irrigation, the KRLP will adopt for component 2 the FAO Water Quality Guidelines for Irrigation, first published in 1985 and updated in 1994. The key relevant parameters for the KRLP irrigation sub-components may be Nitrogen and pH. Other parameters have not been identified as a risk for the use of the water for irrigation purposes. As the irrigation water may be used for other purposes also, e.g. for washing, fishing, and animal watering, aesthetic quality of the water is also important. As specified in the Guidelines for Drinking-Water Quality of the World Health Organization, the relevant parameters that may give rise to complaints from consumers are ammonia and dissolved oxygen. Ammonia in drinking-water is not of immediate health relevance, and therefore no health-based guideline value is proposed. However, ammonia can cause taste and odor problems.

Khammouan Rural Livelihood Project (KRLP) ix Initial Environmental Examination Khammouan Provincial Government DRAFT (3/6/2008)

Furthermore, acknowledging the limited capacity in safeguard application and monitoring, the KRLP includes various aspects to strengthen the national and provincial staff. Notably, these include: • Close cooperation with the key stakeholders at National and Provincial levels to

ensure professional implementation and monitoring approaches (e.g. NAFRI, NTPC, SNV, UN, etc.)

• Ample opportunities for project staff and local government to participate and benefit from training activities;

• Upfront allocation of financial resources for safeguard training and compliance monitoring;

• Usage of a Environmental and Social Safeguard (ESS) Manual to provide the necessary guidance for the Project staff and local governments on the various safeguard procedures to be followed and documents to be prepared;

• Close supervision by the World Bank to ensure compliance with the ESSF. Institutional Arrangements Overall responsibility for the compliance with the IEE is shared between the Provincial Coordination Section (PCS) for Component 1 and the Department of Irrigation (DoI) for Component 2. The PCS and DOI will assign Safeguards Coordinators, who will be the central resource person for all safeguards issues. Training programs will be developed to strengthen the capacity of all Project staff and local government partners where appropriate, to deal with environmental and social safeguards issues. Additional to the prepared KRLP ESS Manual, guidance materials will be adapted and developed to aid the grant recipients in this process, including visual materials and written materials translated into local languages as needed. Necessary changes to the ESSF Procedural Guidelines will be discussed with the WB and subsequently incorporated into the Safeguards Manual and other supporting materials. For project activities following the standard safeguard operating procedures, compliance for the granted activities will be verified through visual inspection by the PCS and DoI/PAFO staff, preferably at the mid-point and close. All monitoring reports from such grant activities and of all specific safeguards documents will be made available in English for review by the Government Agencies, WB supervision missions, and or other external stakeholders, if desired. The present IEE Report will be disclosed to the public both at Provincial and National levels in Lao PDR, and through the World Bank Resident Mission in Vientiane. A summary of grant activities safeguards issues will be included in the quarterly progress reports of the KRLP, to be submitted to the WB. The total cost for ensuring compliance with the Social and Environmental safeguards during the full 6 year project implementation period is estimated at US$ 20,000. This amount comprises operational costs to carry out monitoring and supervision activities, and capacity building and training for KRLP and local Government staff. The amount is part integrated into the standard operating budgets of the PCS and the DoI/PAFO.

Khammouan Rural Livelihood Project (KRLP) x Initial Environmental Examination Khammouan Provincial Government DRAFT (3/6/2008)

Conclusions and Recommendations The rapid environmental assessment indicates that the proposed KRLP activities are unlikely to result in any direct significant negative environmental impact. As summarized in the Environmental Mitigation and Monitoring plans, all potential environmental concerns can be properly mitigated. The proposed activities will all comply with the project ‘negative list’, which excludes sub-projects that would have significant adverse social or environmental impacts and violate any of World Bank environmental or social safeguard policies. Direct negative potential impacts relate mostly to the construction phase, and particular attention has been given to ensure that contractors comply with good engineering practice and prevent any inconvenience to the public during construction. The scope of the proposed construction and rehabilitation works for the KRLP and its anticipated environmental impacts are of a magnitude which does not warrant further extensive studies. As part of the grant preparation process and in accordance with the KRLP EMP and ESSF, an environmental safeguard screening will be carried out for all proposed grant activities, and limited feasibility studies and detailed designs will still be prepared for selected project activities.

Khammouan Rural Livelihood Project (KRLP) xi Initial Environmental ExaminationKhammouan Provincial Government DRAFT (3/6/2008)

KRLP Environmental Mitigation and Monitoring Plan for Component 1Concerns Potential Impacts Mitigation Measure Responsibilities Estimated Costs

PRE-CONSTRUCTION PHASE:Endorsement and application of a‘negative list’ list avoid environmentalsensitive projects

Endorsement and application of aKRLP Environmental and SocialSafeguard Framework (ESSF)

Supported projects arenot yet defined at thestart of the KRLP

Miscellaneousunforeseenenvironmental impacts

Endorsement and Integration of a‘Code of Practice’ for the constructionof small infrastructure

Identification and integration ofenvironmental safeguards trainingbefore and during projectimplementation

Preparation and endorsement of aKRLP ‘ESS Manual’, providingtechnical guidance to comply with theKRLP ESSF.

Limited capacity andknowledge ofenvironmentalsafeguards byGovernment Staff

Proper environmentalsafeguard procedures asdefined in the ESSF cannot be complied with.

Identify and ensure sufficient technicalassistance during implementation.

PCS/DPI

CONSTRUCTION PHASE:Damage to Lands Local erosion Application of KRLP ‘Code of

Practice’ to Provide specifications forappropriate construction practices.

Contractor.

US$ 4,000 forTraining; thisshould beallocated as theproject costs

US$5,000 forsupervision

Other activities,including UXOclearance arepart of projectcosts.

Khammouan Rural Livelihood Project (KRLP) xii Initial Environmental ExaminationKhammouan Provincial Government DRAFT (3/6/2008)

Concerns Potential Impacts Mitigation Measure Responsibilities Estimated Costs

Pollution Discharges fromConstruction and campsites.

Application of Code of Practice forappropriate construction practices.

Noise, Dust Application of KRLP ‘Code of Practicefor Provide specifications forappropriate construction practices.

Incidence of diseases,such as malaria

Proper drainage of the constructionsites.

Field engineerwill superviseand report

Public Health andSafety

Safety Require cooperation with UXO LAOfor the removal of Identified UXOs inproject areas.

PCS,Contractor.

Remarks: The World Bank will conduct post review on the safeguard compliance during supervision missions

Khammouan Rural Livelihood Project (KRLP) xiii Initial Environmental ExaminationKhammouan Provincial Government DRAFT (3/6/2008)

KRLP Environmental Mitigation and Monitoring Plan for Component 2Concerns Potential Impacts Mitigation Measure Responsibilities Estimated Costs

PRE-CONSTRUCTION PHASE:Endorsement and application of aKRLP Environmental and SocialSafeguard Framework (ESSF)


Supported projectsare not yet defined atthe start of the KRLP

Miscellaneousunforeseenenvironmentalimpacts

Endorsement and application of a‘negative list’ list avoid environmentalsensitive projects

Endorsement and application of theFAO Water Quality Guidelines forIrrigation.

Water Quality isunknown at the startof the KRLP

Negative impacts onsoils and public healthwhen unsuitable waterquality is used forirrigation

Ensure that ample water quality data isavailable to make a sound decision.


Preparation and endorsement of aKRLP ESS Manual, providing technicalguidance to comply with the KRLPESSF.


Proper environmentalsafeguard proceduresas defined in the ESSFcan not be compliedwith.


DoI/PAFO US$ 4,000 forTraining; this shouldbe allocated as theproject costs


Other activities,including UXOclearance are part ofproject costs

Khammouan Rural Livelihood Project (KRLP) xiv Initial Environmental ExaminationKhammouan Provincial Government DRAFT (3/6/2008)


CONSTRUCTION PHASEDownstream wateravailability.

Downstream usersmay experience lackof water

Compliance with maintaining flowrequired for downstream users.

Damage to Landsand natural habitats

Local erosion Application of KRLP ‘Code ofPractice’ for Provide specifications forappropriate construction practices.

Pollution Discharges fromConstruction andcamp sites.





Contractor.Field engineerwill superviseand report



DoI/PAFO,Contractor.

OPERATION PHASE:Compliance with Negative list for theuse of Pesticides through the KRLPPMP.

Increased pesticideusage.

Damage to publichealth and theenvironment.

Cooperation with NAFRI/NAFES toorganize training for Farmers

DoI/PAFOwith supportfrom the localgovernmentsand in close

All the cost are part ofthe project cost

Khammouan Rural Livelihood Project (KRLP) xv Initial Environmental ExaminationKhammouan Provincial Government DRAFT (3/6/2008)


Overall reduction of pesticide usethrough the promotion and supportorganic farming approaches

cooperationwith Farmerassociationsand the wateruser groups

Water ResourcesManagement andallocation

Downstream wateravailability in theNam Gnom.

Appropriate operation of retention damin Tha Thot

Increase efficiency of operation of thesystem and match supply withrequirement of water users

Public Health Increased of PesticideUsage

Cooperation with NAFES/NAFRI andprovincial/local government to ensurecompliance with KRLP PestManagement Plan.

Incidence of diseases,such as malaria.

Maintain proper drainage of the area

Periodic flushing of the irrigationchannels

Water UserGroupsassisted byDOI/PAFOand localgovernment


Khammouan Rural Livelihood Project (KRLP) 2 Initial Environmental Examination Khammouan Provincial Government DRAFT (3/6/2008)

Introduction

Purpose of the IEE This Initial Environmental Examination (IEE), which includes an Environmental Management Plan (EMP), presents the key findings and agreements of the Environmental Assessment for the KRLP, carried out during October to December, 2007. Its purpose is to ensure that environmentally sound practices have been incorporated into the project design, and possible negative impacts will be mitigated to acceptable levels. The IEE, prepared in compliance with the Lao National EA regulation and the safeguard policy guidelines of the World Bank, is based on consultations with key stakeholders, field visits to the main project areas, and study of the relevant documents and reports available. Formal clearance for the KRLP will be obtained from the Department of Environment for the present overall IEE, and where necessary subsequent individual supported activities. The processes are described in the KRLP ESSF, with supporting guidance in the Environmental and Social Safeguard (ESS) Manual. Figure 1 - Overview map of the Khammouane Province


Table 1 - List of the Areas for Potential Downstream Irrigation

Area Location Size (ha)

Discharge (m3/s)

1 Nam Kathang & Nam Gnom 7,500 15

2 Tha Thot, */ 1,200 33 Nasok 3,400 74 Mahaxay (gravity & pumping), **/ 8,000 16 5 Nam Phit East 1,100 2

Total 21,200 43 Notes: */ including the existing Tha Thot Scheme with a command area of 470 ha, which would not draw water from the downstream channel. Potential new area would be about 730 ha. **/ approximately 3,000 ha to be irrigated through pumping.


Figure 2 - Overview map of the potential KRLP irrigation areas

Existing Tha Thot irrigation area

Potential Mahaxai irrigation area

New Tha Thot irrigation area

NT2 Regulating Dam / Reservoir

Potential Nam Phit East area

Nam Kathang and Nam Gnom area

Khammouan Rural Livelihood Project (KRLP) 5 Initial Environmental ExaminationKhammouan Provincial Government DRAFT (3/6/2008)

Figure 3 – Topographic map of Potential Irrigation Areas

Source: NTPC, 2005 – NT2 EAMP (www.namtheun2.com)


Environmental Description of the Project Area

Introduction This KRLP IEE presents a brief general description and baseline data of the project area (i.e. the Khammouane Province). The information on the project area is taken from the Khammouane Provincial Environmental Strategy and Action Plan (PESAP) and the Environmental Assessment and Mitigation Plan (EAMP), as prepared by the Nam Theun 2 Power Company (NTPC). The latter includes detailed and updated studies of the entire KRLP study area. Detailed data is also given in the selected sections on the potential impacts and mitigation measures, as appropriate.

Physical Resources

Geography The Khammouane Province is located in the central part of Lao PDR between the 16°15’ and 18°15’ North parallels and the 104°40’ and 106°25’ East meridians (see Figure 1). The total area of the Province is approximately 16,315 km2, and covers 6% of the country’s total area. The Province has common borders with Bolikhomxay province in the North (162 kilometers), Savannakhet province in the South (174 kilometers), Quang Binh and Hatinh of Vietnam in the East (237 kilometers), and Nakhonphanom of Thailand in the West (153 kilometers). The area can be divided into three distinctive geographic zones: • The Mountainous zone in the eastern part has an area of about 5,726 km2, covers

about 35% of the Province’s total area and includes portion of Nakai, Gnommalath and Bualapha districts. Topographically mountains and flat areas alternate with each other creating easy river flow. The zone is suitable for long term industrial trees plantation.

• The Plateau zone has an area of about 3,051 km2, covers about 18.7% of the

Province’s total area and includes portion of Nakai, Gnommalath and a portion of Hinboune districts. The zone is on an elevation of 300-700 metres above sea level. Topographically, the zone consists of low to medium high mountains. Low mountains here alternate with plateau and this is the main objective for expansion of industrial trees plantation in long term coordination with agricultural activities.

• The Flat Zone, with an area of 7,538 km2, covers about 46.3% of the Province and

includes portion of Thakhek, Hinboune, Nong Bok, Se Bang Fai, Mahaxay, and Xay Bua Thong districts. The area has fertile soils and vast flat fields along rivers. This zone will be aimed at agriculture production such as rice and annual industrial crops.


The Province experiences a tropical monsoon climate with distinct wet and dry seasons, consistent temperature, a lot of sunshine and low impact of changing weather patterns. The annual mean air humidity is about 70%, highest 100% and lowest 36%. The average temperature is 26.3°C, with average rainfall about 2,600 mm/year. Because of impacts from high mountains, forest and water sources, weather conditions shows relative larger fluctuations in the different areas.

Water Resources The Province, as illustrated in the maps included in Figure 1, covers two river systems in central Lao PDR; the Nam Theun and the XBF; and extends from the lowlands along the Mekong River to the rugged Annamite Mountain Range along the Lao-Vietnamese border. Midway between the Mekong and the Lao-Vietnamese border lies the Nakai Plateau, located approximately 350m above the adjacent plain to its south and southwest. The NT2 Power Station is located at the base of the escarpment beneath the Nakai Plateau, whilst the proposed dam is located at the northwestern edge of the Nakai Plateau. The Nam Theun itself originates at an elevation of 2,286m in the Annamite Mountains and is joined by 3 tributaries on the Nakai Plateau (Nam On, Nam Noy and Nam Xot). Together these form the Project watershed which is protected under the NNT NPA. The watershed is characterized by mountainous, mainly forested terrain and is remote and sparsely populated. The Plateau itself, lies at an elevation of 520-550m. Sandstone peaks of elevation 1,100-1,300m form its northeastern margin whilst to the southwest, it is surrounded by a sandstone lip at elevation 600-700m. The Nam Theun meanders across the relatively flat Nakai Plateau. River discharges are directly related to precipitation with approximately 85% of annual runoff typically occurring between June and October whilst low flows occur in April (see Table 2). Average annual discharge in the Mekong at Nakhon Phanom has decreased by over 10% in the past 75 years. Seasonal flood magnitudes have also decreased whilst annual minimum monthly flows have increased. This could be the result of withdrawal or storage of water in the upper Mekong for irrigation or other uses, climatic changes and/or changes in vegetative cover and land use.


Table 2 - Summary of Mean Annual and Monthly Flows (in m3/s) Monitoring site Data Annual Monthly Average

series Average Driest Wettest Nam Theun at Ban Thalang (Nakai Plateau)

1986-2002

205.6 24 (Apr) 653 (Aug)

Nam Theun at dam site 1950 –2002

238 31.9 (Apr)

734.7 (Aug)

Nam Kathang at Regulating dam site 1994-2002

10.2 0.3 (Apr) 38.5 (Sept)

XBF at Mahaxay 1989-2002

265.4 12.7 (Apr)

921.2 (Aug)

Mekong at Nakhon Phanom (upstream of XBF)

1924-1999

5,865 1,493 (Apr)

19,879 (Aug)

Mekong at Mukdanhan (downstream of XBF)

1922-1992

6,960 1,552 (Apr)

21,453 (Aug)

Source: Final Draft EAMP, November 2004 Various water quality surveys have been conducted in the main rivers in the Khammouane Province. The results were compiled and analyzed in the NT2 EAMP, as presented in Table 3. Measured water quality in the Nam Theun is good reflecting the fact that the river is located in a relatively undisturbed catchment with a small population and no industry. Water quality in the XBF basin is similarly good although orthophosphate and total phosphorus are comparatively higher. The seasonal fluctuations for the XBF, the most relevant for the KRLP, are briefly described below. A water quality monitoring program starting in 2004 will extend the existing baseline data before the start of construction and operation.


Table 3 - Water Quality in the NamTheun/Nam Kading, Nam Kathang and XBF Parameter Nam Theun / Nam

Kading Nam Kathang XBF

Wet Season

Dry Season

Wet Season

Dry Season

Wet Season

Dry Season

Temperature (�C) 23.6 –24.7

25.6 26.5 – 28.0

27.3 – 35.7

26.8 – 27.0

28.4 – 33.1

pH 6.45 – 6.52

7.23 7.24 – 7.50

7.55 – 8.50

7.48 – 7.73

8.10 – 8.40

Conductivity at 25�C ( S/cm)

28.7 57.4 205 320 329 322

Dissolved oxygen (mg/L)

6.7 – 7.1 6.5 7.7 – 7.8 4.6 – 14.1

6.4 – 7.2 6.2 – 9.4

Suspended matter (mg/L)

9.4 – 9.4 – 39.3 –

Ammonium (mgN/L)

0.02 0.04 0 0.04 0.02 0.04

Nitrites (mgN/L) 0.004 0.001 0.005 0.005 0.019 0.010 Total phosphorus (mgP/L)

0.15 0.09 0.20 0.11 0.19 0.10

Silicon (mgSi/L) 4.4 4.5 4.8 9.7 3.6 11.1 Calcium (mgCa/L) 0.31 0.85 0 – 0 – Magnesium (mgMg/L)

2.88 1.50 0.81 – 0 –

Source: NT2 EAMP, 2005. The water quality in the XBF basin is good. It shows higher measures of alkalinity, total hardness, conductivity and total dissolved solids than the Nam Theun basin, and reflects the fact that the XBF is primarily situated on a limestone bed. The XBF flows through numerous villages where most of the people are involved in agricultural and fisheries activities. During the dry season, riverbanks are used for growing vegetables. Livestock and the human population also use river water for bathing and drinking water. During the dry season in the XBF, pH ranged from 6.3 to 8.4 (HYDRECO, 2001a). Measures of total dissolved solids (124-204 mg/l in February 1995 and 191-241 mg/l in March 1995), alkalinity (109-174 mg/l as CaCO3), and total hardness (131-149 mg/l as CaCO3) are approximately an order of magnitude higher than in the Nam Theun. Measured conductivity ranges from 11 to 36 S/cm. Conductivities recorded in April, 2001 (HYDRECO, 2001a) were between 20 and 39 S/cm.

In the wet season, the water quality of the XBF appears to be fairly good. Conductivity measurements ranged between 13 to 38 S/cm, pH was between 7.2 to 7.8, while dissolved oxygen concentration was between 6.4 and 7.2 mg/l. Nutrient concentrations were generally low, though orthophosphate concentrations would easily support phytoplankton growth. It has been concluded that the XBF wet season waters present different characteristics to those of the Nam Theun, with adequate dissolved oxygen but


low conductivity. The water tends to be warmer, slightly alkaline, and contains considerably more orthophosphates and total phosphorus.

Land and Forest Resources Currently, the forested area of Khammouane is 812,600 hectares, covering 47% of the total area of the Province. Among this, easily accessible areas consist of about 248,763 hectares, while 563,837 hectares are very difficult to access (Dept. of Agriculture and Forestry, 2003). Forest resources have played an important role in the Province’s economic development. In 2003, Agriculture and Forestry products made up 54.06% of GDP (Dept. of Planning and Investment, 2003). In the near future, the main sources of income of the Province will continue to be wood products as there are limited options for alternate sources of income. Throughout the country, there are many wood processing industries. Besides this, logs can be found along roads, log-field, camps and mining areas. In the past few years, areas of shifting cultivation were about 604 hectares and located within 3 districts: Bualapha, Nakai and Gnommalath and there were 1588 families in 109 villages (Dept of Agriculture and Forestry, 2003). Despite the efforts of the Ministry of Agriculture and Forestry and its line department with their programme for stopping slash-and-burn, people in those areas continue their traditional practices of shifting cultivation. These people rely on rice and crops to exchange for goods and services such as clothing and medicine. These crops also provide for subsistence living of most of these families. Shifting cultivation is the main issue that decreases forest and soil fertility as rotations occur frequently. Apart from that, there are other constraints such as weeds, pests, animals and drought that force people to expand their shifting cultivation areas to meet their demand. This is the reason that forest area is quickly decreasing and being degraded. The effects of forest fire and human influence on the expansion of production areas also are contributing factors to the decrease of forest area within the province of KM. Slash-and-burn is the main cause of forest fire and each year there are tremendous losses from forest fire. Therefore, forest fire and slash and burn cultivation are interrelated and it is imperative that management plans are developed and solutions found to address and solve these problems in time.

Biological Resources

Aquatic Habitats and Fish Diversity The diversity of fish species in the Nam Theun is low compared with the Mekong mainstream and the adjacent XBF basin. 131 species of fish have been observed in the XBF and 68 in the Nam Theun basins. Habitats that are important to fish populations in the Nam Theun and XBF include riverbank terraces and floodplains; the flood plains at the confluence of the XBF with the Mekong River are particularly important for XBF fisheries. Flooded areas serve as nursery grounds and refuges for juvenile fish. Habitats in the XBF are more diverse and the river has direct communication with the rich


Mekong fauna. Furthermore, the presence of only juvenile fish at some locations in the Nam Theun suggests locally intense fishing activity. Seasonal fish migrations between the Mekong River and XBF are important components of the economic livelihoods of communities on and adjacent to the XBF. Fish are harvested in the rivers either as a source of protein or for sale in local markets. A comprehensive baseline study of aquatic resources in the XBF has been ongoing since 2001 and will continue through to operation of the NT2 Project and thereafter to determine the impacts of the NT2 Project on availability and fish catch for use by local communities.

Protected Areas and Terrestrial Biodiversity Climate and the diversity of geological conditions in the area have led to an extraordinarily high diversity of species, isolation and endemism. The Annamite Mountains that form the border between Lao PDR and Vietnam are recognized as an area of global significance in terms of biodiversity. Shifting cultivation has however affected and continues to degrade the forests and habitats of the NBCAs and GOL does not currently have adequate personnel or resources to control this degradation. KM is a province rich in biodiversity and consists of 3 National Biodiversity Conservation Areas (NBCA): Nakai-Nam-Theun, Hin Nam No and Phon Hin Poune NBCAs (see Figure 1). Prime Ministerial (PM) Decree 193 of 1993 established a series of corridors to connect the three NPAs to enable wildlife migration between them. Theses NBCAs have high value in culture, social structure, education and scientific research. They are also important for the economy, the development of tourism and protection of water sources. Much wildlife can be found in these NBCAs such as: wild elephant, tiger, bear, deer, saola (Pseudoryx nghetinhensis), wild pig, gibbon, monkey, striped rabbit, serow, and the munt jack (Hin Nam No NBCA, 2000). The discovery of Saola in 1992 attracted attention from scientists worldwide. Saola was discovered by using an automatic camera and only two saolas were photographed in their natural habitat. One decade after the discovery, it is still hard to explain the existence of such an animal, but it is expected that there about 70-100 saolas. So it is possible, that the number of saolas is limited to these three NBCAs of KM (WWF, 2001) In the Northern Annamite Rain Forest Ecoregion within which the NNT NPA is situated, 19 mammal and bird taxa1 are considered near or strict endemic. These currently include langurs, crested gibbons, saola, large-antlered muntjac, Annamite muntjac, Indochinese wartypig, Annamite striped rabbit, crested argus, Edward’s pheasant and the orange-necked partridge. Three forest species (Fokien Cypress – Fokienia hodginsii, Yunnan youshan/May kinh – Keetelaria evelyniana, and Tenasserim pine—Pinus latteri) and the habitats they provide will also need special measures directed towards their conservation.

1 Groups of organisms that are considered distinct enough to be treated as a separate ecological unit.


Whilst they occur in other parts of the region, their precise extent is uncertain and natural populations may be limited. During the preparation of the NT2 Project, it was reported that of the 106 mammal, 403 bird, 38 reptile and 25 amphibian species recorded on the Nakai Plateau, NNT NPA and the Nam Theun Corridor, 38 mammal, 17 bird and 10 reptile species are classified as globally threatened according to IUCN’s Red List of Threatened Animals. Some 115 species are considered nationally at risk in Lao PDR. Further details on the most threatened species identified in the NNT NPA is given in the NT2 EAMP. Of the endangered species in the NT2 Project impact area, the Asian elephant and white winged duck were identified by the as requiring special management attention (under the NT2 Project) because of the threat posed to their populations by reservoir inundation and because if well managed, they can help conserve other wildlife species using the same habitats. In terms of the NNT NPA, since most of the Nam Theun catchment is remote, sparsely populated and difficult to access, a large portion remains in near pristine condition and contains a wide variety of wildlife of global and national conservation significance. Threats to this area include hunting, collection of non-timber forest products (NTFPs) focusing on tree species with fragrant bark/wood and medicinal properties and logging, most notably in the area of the NNT NPA on the Nakai plateau. Commercial logging in the NNT NPA has however ceased.

Economic Activities

Economic growth In general, the investments in the Province that generate most income to the province rely on exploitation of natural resources. Major economic sectors are crops, animal husbandry, fishery, forestry and hydropower. The growth of the economy is steady, although Khammouane remains a poor province. In the past few years, the growth of the economy was about 5.5%, which is less than anticipated by 1.2% (planned target 6.7%). (Dept. of Planning and Investment, 2003).

Hydropower development The changes brought by the market liberalization of the past 15-20 years are due to accelerate in the period to 2015, driven by developments such as global and regional trade liberalization, the recent completion of National Road 12 to Vietnam, the construction of the USD 1.1 billion Nam Theun 2 (NT2) hydropower project, the completion of a bridge across the Mekong River in the neighboring province of Savannakhet and the planned construction of a trans-Mekong bridge from the provincial capital of Thakhek. In the coming decade, then, the province will likely benefit from significant opportunities for economic growth – the key challenges faced being how these opportunities will be translated into pro-poor and inclusive growth and an overall


improvement in social indicators. These challenges are significant, and success in facing them will very much depend upon improvements in service delivery, and in turn the ability of the province to better plan manage, monitor, and evaluate the use of its resources. NT2 is the largest hydropower development project in the country, and is located largely in Khammouane Province. Just as there are clear national opportunities and challenges associated with this project, so there are for the province. Meeting most of these local challenges – particularly the immediate social and environmental challenges – is the responsibility of the Nam Theun Power Company (NTPC), which owns the NT2 hydropower stations. The World Bank and ADB are fully engaged in supporting appropriate mitigation measures and in restoring the livelihoods of affected families. In terms of opportunities, the Government and the province are keen to utilize the discharge water from the NT2 hydropower station to develop irrigation schemes.

Use and distribution of pesticides in Lao PDR In 2003, the FAO Vegetable Integrated Pest Management (IPM) Program conducted a case study on pesticide use in Laos (Van der Borght et al 2004). Interviews, discussions and surveys included officials, farmers and markets in Champasak, Savannakhet, Vientiane Capital and Vientiane Provinces. The study found that pesticide use is relatively low in Laos compared to in other countries of the region, and that active promotion of pesticides is not widespread. However, the study also found that pesticides are widely available, and that most of those for sale are highly toxic. Folidol, a class 1a pesticide, was found to be the most widely available and used pesticide, even through it is officially banned. However, it is reported that ‘a clear trend toward increasing use of pesticides was noted, particularly by farmers producing for urban markets. Although these farmers are aware of the dangers, they repeatedly stated that they know of no other way to meet the demands of the market, consumers and middlemen, other than to use more pesticides. The study concluded that merely not promoting pesticides is not enough, and that more concerted policies, strategies, and action are urgently needed’.

Similarly, during a FAO organized regional workshop on the Implementation, Monitoring and Observance of the International Code of Conduct on the Distribution and Use of Pesticides2 in 2005, a survey was conducted on selected pesticide management aspects. It became clear from this exercise that most countries do not have a single institution that is knowledgeable about all aspects of pesticide management, but this information is scattered over several institutions. According to the results provided by the participants (see Figure 4 and Figure 5), the findings can be summarized as follows: • The overall annual pesticide use was estimated at close to 500 000 tons active

ingredients valued at US$8.3 billion. This figure is considerably higher than other

2 FAO, 2005 - Proceedings of the Asia Regional Workshop on the Implementation, Monitoring and Observance of the International Code of Conduct on the Distribution and Use of Pesticides. Bangkok, Thailand, 26-28 July 2005.


estimates which put the Asian pesticide value at about US$5 billion per year. For comparison, this value is more than the national gross products of Cambodia and Lao PDR combined. It has been said that the trend of pesticide use is increasing in Asia, while worldwide it is stagnant. More than half of the regional pesticides are used in China.

• The pattern of pesticide use differs significantly between the countries. Per hectare of agricultural land, most pesticides are used in the Republic of Korea, followed by Malaysia. According to the information collected, the least intensive pesticide users are Lao PDR, Cambodia and Nepal; however, these countries may have unrecorded pesticides from cross border trade which would increase the actual figures.

• The pattern of pesticide use differs significantly between the countries. Per hectare of agricultural land, most pesticides are used in the Republic of Korea, followed by Malaysia. According to the information collected, the least intensive pesticide users are Lao PDR, Cambodia and Nepal; however, these countries may have unrecorded pesticides from cross border trade which would increase the actual figures.

• Pesticide expenditures in relation to the agricultural GNP or the per capita income again were the highest in the Republic of Korea, followed by China. It was the lowest in Cambodia, Lao PDR and Nepal which are predominantly agricultural countries with more than 30 percent of their GNP coming from agriculture, and at the same time having the lowest per capita income.

• A low pesticide price was not correlated with intensive use. The Republic of Korea has both the highest unit price and the highest consumption. Malaysia, the second most intensive pesticide user, however, has the lowest reported pesticide prices. Other low-price countries with less than US$2 per kg formulated product were Cambodia, Pakistan and Thailand.

• All countries except Singapore have laws specifying the quality of pesticides, usually following FAO/WHO standards. All countries except Lao PDR and Singapore possess laboratories to check the quality of pesticides, however, the capacity and number of analysis per year differs greatly between the countries.


Figure 4 – Value and Volume of Pesticide usage in Asia

Figure 5 - Comparison of Pesticide usage in Asia

Source: Proceedings of the Asia Regional Workshop on the Implementation, Monitoring and Observance of the International Code of Conduct on the Distribution and Use of Pesticides. Bangkok, 26-28 July 2005.


Although the figures derived from the FAO Workshop may be based on insufficient and incomplete information and not 100% reliable, they confirm the general statements that the usage of chemical inputs in Laos is limited as compared to other neighboring countries. The low usage would be consistent with the fact that the agriculture activities are relatively less developed and that all pesticides used in Lao PDR are imported from nearby countries such as Thailand, Viet Nam and China. The pesticides imported for distribution comprise of pesticide, fungicide and herbicide with increasing price when distributed in the agricultural shops, retail shops at the villages and at the market. Pesticides are distributed to farmers in three channels: • Distribution by companies and farms: Pesticides popularly applied for only some

kinds of vegetables are imported and directly distributed to regular clients by distributors and these pesticides are only applied for high-price vegetables such as tomatoes, chili, radish, and water melon.

• Distribution by agricultural inputs distributors: Pesticides are imported and distributed to the agricultural inputs distributors and later distributed to farmers.

• Distribution by distributors to agricultural inputs shop to retail shop to farmers: Pesticides are transferred to the shop and later distributed to local shops in the local villages and market places by local traders and finally distributed to farmers.

Inorganic fertilizers are used in the more permanent agricultural areas of Gnommalat, Mahaxay and Xe Bang Fai Districts, but not at all in the shifting cultivation agricultural practices of the upper watersheds in the Khammouane Province. Where used it is predominately on the dry season rice crop, but in the Xe Bang Fai it is also used in the wet season. The type of usage varies according to the recommendations of MAF extension workers and availability locally. Farmers mentioned using an NPK 16-20-0 compound fertilizer to “prime” the land at around 200-350kg/ha followed by urea 46-0-0 at around 50kg/ha. These fertilizers contains no K, making the rice susceptible to diseases such as brown spot disease in K deficient conditions.

Social Setting and Cultural Resources

Population The Province consists of 804 villages, 57,012 families; its total population is about 313,917 persons, women 159,873 persons. Population is increasing at a rate of about 2.0% per year. There are 3 major ethnic groups: Lao Loum consists 86.98%, Lao Theung about 12.84% and Lao Soung about 0.18% of the total population and there are 7 tribes: Lao Loum, Phou Thai, Broo, Krie, Saek, Ngouam, and Thmong. Population density is about 19 persons/sq km. Total number of poor families is reported to be about 11,185 or about 19.50%, if compared with the data surveyed according to order number 010/PM of the Prime Minister, the number of poor families has decreased by 1,920 and there are 353 poor villages or about 43.91% of the Province’s total villages (Table 4).


Table 4 – Overview of Poverty in the Khammouane Province No Name of No. of No. of Poor Villages Poor Families Remark

District Villages Families No. % No. %1 Thakhek 141 14,291 8 5.67 960 6.7 not poor 2 Hinboune 166 10,615 13 7.83 1,948 18.3 not poor 3 XBF 50 4,308 2 4 345 8 not poor 4 Nong Bok 72 7,266 20 27.78 356 4.9 not poor 5 Mahaxay 89 5,246 69 77.53 1,662 31.6 poor 6 Bualapha 82 4,049 76 92.68 1,191 294 poor 7 Gnommalath 71 4,889 57 80.28 1,786 36.5 poor 8 Nakai 67 3,338 48 71.64 1,643 49.2 poor 9 Xay Bua

Thong 66 3,338 60 90.91 1,294 38.7 poor

Total 804 57,340 353 43.91 11,185 19.5

Source: PESAP, 2004. In general terms, population densities in most rural areas are low, and characterized by pronounced ethnicity, dependence on subsistence livelihoods with household income levels well below the national poverty line, and limited or no access to infrastructure and services such as education, health, electricity and water supply. This is in contrast to the XBF basin within which (when moving towards the Mekong River) population numbers gradually increase, together with income and education levels, ethnic identity becomes less pronounced, livelihoods more secure and connections to electricity and water supply more common. The XBF areas are typical of many lowland areas in Lao PDR where the population is dependent on paddy cultivation, fishing and some degree of non-agricultural income with only a few ethnic minorities distinct from the Lao-Tai ethnic group. The GOL has previously supported major irrigation developments along the lower XBF and has requested that this Project contribute towards expanding this to other areas by providing additional water in the XBF. Dry-season riverbank gardens supply most of the vegetables for local consumption and riverine forests and wetlands are an additional source of edible plants, aquatic animals, NTFPs and herbal medicines. Most communities fish in the river at different times of the year. Fish is the main source of protein and most fish are consumed locally. On average, households also catch several kilograms of non-fish aquatic products monthly; the rainy season from April to October provides the highest production. Each household also raises on average 2-3 head of cattle, 1 pig and 10 chickens. Cattle are a form of saving and are sold for cash to meet household expenditure.

Physical cultural resources In terms of physical cultural resources, few items of historical or archaeological importance are likely to exist in the areas affected by the Project. Surveys carried out for the NT2 Project involved a detailed inventory of all sites and artefacts and identified a


number of sites of prehistoric, historic, spiritual, religious and palaeontologic significance, cemeteries and other cultural sites. The most relevant cultural included: • Sites of spiritual significance, cemeteries, an abandoned Buddhist temple near Ban

Nakai Tai (believed to be approximately 200 years old), and the foundations of a royal hunting lodge built in the 1940’s on the Nakai Plateau;

• A number of historic Buddhist temples, a prehistoric cave and territorial spirit sites in the Downstream Channel area (although outside Project Lands);

• An important religious site (Wat Sen Sayalarm), historic limestone kilns and a cemetery on the banks on the XBF;

• Historic sema stones (believed to predate the 18th century) adjacent to the transmission line corridor plus other territorial, religious and cultural sites in other Project Lands; and

• Evidence of prehistoric human occupation (possibly Neolithic and Palaeolithic) in a number of limestone rock shelters and caves in the Pha Phen (Phou Phako) region.


Overview of Potential Impacts

Support for Local Development and Provincial Capacity Building (Component 1) Through Component 1, the KRLP will support Provincial and District Governments with block grants to finance a group or package of small civil works. No major environmental and negative social impacts are expected, as Component 1 of the KRLP aim to improve rural livelihoods through small scale grants, are designed with a participatory assessment and implementation approach, and have capacity-building as a major focus. However, at the time of the KRLP preparation, details of the activities and location are still to be decided upon. Some eligible small-scale civil works may involve minor negative environmental impacts. Certain supported project activities may also require minimal land acquisition or cause minor social impacts on some members of the community.

General Construction Impacts All construction activities will have the potential to cause minor negative environmental impacts such as noise, dust, waste production, soil stability and erosion, drainage problems, etc. Moreover, all construction activities will result in certain logistical disturbances and safety concerns, both for the communities and the construction workers. Finally, after completing the construction activities, contractors may be in a hurry to start another assignment, leaving the construction site with properly restoring and cleaning the areas.

Safety and Unexploded Ordnance (UXO) Lao PDR was subjected to heavy bombing during the Indochina war, resulting in large areas of land ridden with dangerous unexploded ordnance (UXO) throughout many parts of the country. UXO is a critical impediment to agricultural development and land utilization. Approximately two million tons of ordnance were dropped on Lao PDR during the conflict. Of the 18 provinces in Lao PDR, 15 are significantly affected by UXO. It is estimated that UXOs are still present in nearly 50 percent of the total arable land area of Lao PDR.

Historical and Cultural sites Although the Khammouane Province is rich in historical and cultural sites, the rehabilitation/construction of the individual supported activities are not expected to have negative effects on any historical or cultural site. However, possible unforeseen impacts are assessed during the general safeguard screening, and where appropriate, included in the necessary safeguard documents.


Irrigation Development along NT2 Downstream Channel/Lower XBF (Component 2)

General No significant environmental and negative social impacts are expected. The proposed activities under Component 2 of the KRLP will include the rehabilitation and construction of small scale infrastructure only. Similar to Component 1, not all of the anticipated works are known at the time of the KRLP preparation. The rehabilitation and construction of eligible small-scale irrigation schemes and its subsequent operation may result in some direct and indirect impacts may result minor negative environmental impacts. Certain supported project activities may also require minimal land acquisition or cause minor social impacts on some members of the community. Other potential negative impacts related to the rehabilitation and development of the irrigation schemes described below. During the implementation of the KRLP, the adopted KRLP safeguard screening process will still be applied and the Project staff will assess the individual schemes and subsequently, upon the satisfactory assessment, individual approvals will be issued.

Water Availability and Downstream users For sub-component 2.1, the rehabilitation of the existing Tha Thot irrigation scheme, water will be taken from the existing Tha Thot reservoir, which originates from the Nam Gnom spring approximately 2km upstream. The total discharge of the Nam Gnom River is estimated at more then 4 m3/s . The estimated water usage during the dry season for the proposed scheme is 0.5 m3/s, taken from the existing Tha Thot reservoir. The Nam Gnom river discharges into the Nam Kathang, approximately 7km downstream of the reservoir. The quantity of water to be used from the Nam Gnom river is less then 20 % of the total flow, and no negative impacts for the downstream users are expected. The water from the reservoir will be released on a continuous basis and will be sufficient to ensure that no negative impacts on the aquatic habitats of the down stream Nam Gnom or Kathang river will occur. It should be noted that most downstream users will also be a member or represented in the water user groups for the Tha Thot irrigation scheme.

Dam Safety During the project preparation and rapid environmental screening, no safety concerns were identified for the rehabilitation of the Tha Thot retention dam. However, during the detailed design for the rehabilitation works, still to be carried out as part of the KRLP project, further attention will be given to all dam safety aspects. For the other schemes (sub-component 2.2), all possible larger intake structures are newly constructed as part of


the NT2 project (i.e. the NT2 retention dam), or will only consist of smaller intake structures. Figure 6 – Location map of the Tha Thot reservoir, retention dam and intake

Source: Google Earth (earth.google.com)

Irrigation Water Quality Concerns Attention should be paid to the water quality to be provided for the new irrigation system (130 hectares) to be constructed in the Tha Thot area (sub-component 2.2) and the rehabilitation of the XBF pumping schemes (sub-component 2.4). The irrigation will use water from the outflow of the Nakai Reservoir. Water discharged from the Power Station will be retained in the Regulating Pond, where the majority of the flow will be transferred to the Xe Bang Fai via the 27 km-long Downstream Channel. A portion of the water discharged from the Power Station, equal to its natural inflow into the Regulating Pond, will be diverted into the Nam Kathang. The existing Tha Thot scheme to be rehabilitated (sub-component 2.1) uses water from the source of the Nam Gnom river, for which no water quality issues are anticipated. The potential irrigation development area of the Tha Thot area using the discharge from the NT2 hydropower station is estimated at approximately 1,200 ha in total, divided into five (5) sub-schemes (see Annex I, Table 10). During the pre-feasibility study, GoL and NTPC agreed that one of the two (2) outlets at the Regulating Dam will have a capacity of 3.18 m3/s for releasing water to the Tha Thot area of 1,200 ha. The outlet for the Tha

Tha Thod Retention

dam

Irrigation intake

Tha Thod Village

Tha Thod Reservoir

Existing Irrigation canals


Thot area will be further divided into 2 outlets, one of which will have a capacity of 1.52 m3/s for the right bank of the Downstream Channel and the other of which will have a capacity of 1.66 m3/s for the left bank of the Downstream Channel. The proposed expansion would be the second sub-scheme located on the right bank of the Downstream Channel. Water would be released from the Regulating Dam and distributed by gravity. Detailed feasibility study and the detailed design would be carried out during the first year of implementation. To evaluate the potential water quality conditions in the Nam Kathang, the downstream channel and the Xe Bang Fai, a model was developed by EDF (2001) as part of the NT2 EAMP. The model focused on the parameters temperature and dissolved oxygen, but also provided insights into expected water quality for other selected parameters. For the XBF, several scenarios were analyzed. For dissolved oxygen, the expected concentration for the XBF in the ‘worst case scenario’ was 2 mg/l for a substantial portion of its length. Such a low concentration of dissolved oxygen would be detrimental to fish populations. As reported in the EAMP, a higher concentration of dissolved oxygen and a lower concentration of methane are expected. Peak concentrations of 25 g/l ammonia are predicted to occur during the wet season after destratification of the reservoir. These concentrations are close to the baseline values for receiving waters, and are not expected to have a significant impact on fish populations. Samples of water discharged from the power station at Nam Leuk indicated that some ammonia is present in the water (> 0.3 mg N-NH4/l). The water discharged from the Theun Hinboun power plant is oxygenated and ammonia concentrations are low. Water discharged from the Nam Ngum reservoir contains a small amount of ammonia (maximum 0.1 mg N-NH4/l) (HYDRECO, 2001a). Due to the continuous high oxygen levels in the top layers, no impacts of hydrogen sulphide are expected at the surface water layer. The water quality model (Winters et al., 2000) predicts stratification of the reservoir. Anoxic conditions will likely arise in the bottom layers but this water will not be diverted for riparian release into the Nam Theun downstream of the Nakai Dam. For the Power Station intake, water will be diverted from both the top and bottom layer, reducing the concentrations of hydrogen sulphide and methane. Nutrient concentrations in the Nakai Reservoir will increase during the first few years of operation due to the decomposition of plant material that is present in the reservoir area. This is a common phenomenon in reservoirs throughout the world and results in an initial flush of productivity until the reservoir matures and the amount of decomposing plant material declines. An increase in nutrient concentrations frequently leads to phytoplankton growth in the reservoir. High nutrient levels are expected within reservoirs with insufficient removal of vegetation before impoundment. A consequence of the higher nutrient concentrations is that pH will fluctuate considerably in the reservoir until the nutrient concentrations come into balance with the water flowing into the reservoir area.

Increased usage of Pesticides and Fertilizers As part of the negative list, the KLRP will not procure any pesticides. However, similar to the NT2 activities, providing additional water for irrigation may increase the pesticides


and fertilizer usages. An extensive review of pest management practices in Lao PDR, with emphasis on the Khammouane Province, is included in the Nam Theun 2 Pest Management Plan, as included in the EAMP3. A extract of the EAMP on pest management practices in Lao PDR is included in Annex II. In general, pest attack on agricultural crops is low in Lao PDR. Although there is a range of pests mentioned both by farmers, officials and in the literature, these are rarely of economic importance, except perhaps in some cases for vegetables. The NT2 EAMP identified the XBF area as the most likely area for increased agricultural pesticide and inorganic fertilizer use is in the XBF area. The increased flow of water from the Nakai Reservoir into the XBF will result in two possible new scenarios that could result in a pest or pest management impact: • Increase in Dry Season Irrigation. The increased flow of water in the XBF will

provide a water resource and reduce pumping costs in areas, such as the upper XBF, where the dry season river flow is currently low, and insufficient for large scale irrigation. If indeed more irrigated rice is introduced it will be based on more intensive production than in the wet season, requiring improved varieties, fertilization and crop protection. The potential impact will be as follows: o Stem borers, gall midge, brown plant hopper and armyworm could all increase but

the result should not be more insecticide application than currently exists in the XBF Plain, with about half the farmers applying only one or more sprays per season;

o Golden apple snail will increase and whilst it is accepted that snails may be eaten for food there is a clear danger of it becoming a serious pest and pesticides will be used. There are specific

o molluscicides that are not toxic to fish but they are relatively expensive and their application may require an improved level of paddy management. Broad spectrum, cheap alternative insecticides, such as endosulfan, therefore tend to be used which can be toxic to other freshwater life, which presents a real threat to the consumption of fish of rice farmers;

o Rice diseases are unimportant at present but, because of the increased cost base of irrigated rice, farmers will be more inclined to apply a fungicide to protect their investment. Bacanae, blast and bacterial leaf blight could increase if two rice crops per year are grown but introduced improved varieties, commonly used for irrigated rice, are bred for blast and bacterial leaf blight resistance and the seed is heat treated to kill bacanae. There is no reason to believe that fungicide use will be greater than the very low levels that already exists in the XBF plain;

o The same consideration applies to weeds as to diseases. Although readily available in Thailand there appears to be very little herbicide use on the irrigated crop in the XBF;

o Inorganic fertilizer use will increase as has happened in the XBF plain.

3 NTPC, 2005 – NT2 EAMP. Annex M: Pest Management Plan.


• Increased Duration of Wet Season Flooding. The potential increase in the duration of wet season flooding has yet to be verified. The XBF plain is an area where current flooding frequently causes the loss of significant areas of paddy rice. In this and other similar areas the Lao government has instituted a program of investigation, in collaboration with Vietnam, to ascertain the practicality of planting at the end of the wet season in a drying out environment, but before the beginning of the dry season proper – an off-season crop. Such a crop would benefit or indeed require irrigation throughout the dry season. The increase in flow from the Project may or may not have an effect given the currently large variability in the matrix of factors that govern whether flooding occurs. Off-season rice production is likely to result in higher levels of pests as detailed above.

Concerns for Public Health The NT2 EAMP reported that the NT2 Project is not expected to have any significant impact on the prevalence of malaria, dengue, Opisthorchiasis and Schistosomiasis in the XBF area. Similarly, it is not anticipated that the KRLP will have any significant effect. Possible minor impacts, which were assessed include: • Malaria: there is the possibility of an increase in breeding sites for the vector

mosquito in the dry season if and when more dry-season irrigation is adopted. However preventative measures are already being implemented by the MOH throughout these areas in the form of insecticide treated bed nets and the population should suffer no noticeable increase in risk. As part of the NT2 compensation package for communities in the XBF, aquaculture and rice-cum-fish practices may be strengthened.

• Dengue: the Project should have no significant impact on the prevalence of this disease, nor of the vector;

• Opisthorchiasis: the Project should have no significant impact on the existing prevalence of this disease;

• Schistosomiasis: disease not recorded but the snail vector has been found in the area. The nearest place the disease has been recorded is Kong Island in the south of Lao PDR. In the opinion of local specialists there is no reason to believe the Project will have any impact in the spread of this disease; and

• Japanese encephalitis: dry season irrigation could augment the population of the vector mosquito in the XBF valley east of Road 13 by providing more breeding sites in irrigated fields and surrounds.


KRLP Environmental Management Plan

General KRLP Environmental Management Approach

Introduction In general, the key features (as further described below) to mitigate and monitor potential safeguard issues for the KRLP include:

• Application of the KRLP ESSF for all activities which are not yet defined at the start of the KRLP project;

• Application of a ‘negative list’ of non-eligible activities to avoid negative social and environmental impacts which cannot be adequately mitigated or are not eligible for WB Financing;

• Application of a standard comprehensive safeguard screening procedures for all proposed grant activities, which will identify potential impacts and necessary mitigation measures;

• Strict procedures for possible safety hazard, e.g. UXO removal, as included in the KRLP ESS Manual (under separate cover);

• Usage of a standard KRLP Code of Practice, as included in the KRLP ESS Manual (under separate cover), to be attached to the construction contracts and grant agreements.

KRLP Environmental Mitigation and Monitoring Plans (EMOP) have been prepared to guide the implementation of both KRLP Components. The EMOPs (Table 8 for Component 1 and Table 9 for Component 2) summarize all the anticipated environmental impacts and its applied mitigation measures during the pre-design, construction and operation phase. The recommendations and proposed mitigation measures will be attached to the KRLP supported grant agreements and/or bidding documents, listing briefly the mitigation measures to be applied. To facilitate integration of safeguard considerations into the project preparation, implementation, and monitoring process, a distinction has been made for (i) the Design Phase, the period before the actual construction starts; certain safeguard requirements need to be complied with in order to allow to start the implementation of the proposed activities; (ii) the Implementation Phase, the period from the time that all formal approvals are given until completion, and (iii) the Operation Phase, the period after the formal completion of the project activities. Furthermore, acknowledging the limited capacity in safeguard application and monitoring, the KRLP includes various aspects to strengthen the national and provincial staff. Notbaly, these include:

• Close cooperation with the key stakeholders at National and Provincial levels to ensure professional implementation and monitoring approaches (e.g. NAFRI, NTPC, SNV, UN, etc.)




• Usage of an ESS Manual to provide the necessary guidance for the Project staff and local governments on the various safeguard procedures to be followed and documents to be prepared;

• Close supervision by the World Bank to ensure compliance with the ESSF.

Application of a KRLP ESSF As a part of the grant agreement between the Government of Lao (GoL) and the World Bank (WB), the KRLP will apply an Environmental and Social Safeguards Framework (ESSF) to all supported project activities, in particular all proposed investments, to be implemented under the Project Components. The KRLP ESSF describes how safeguards issues will be dealt with by (i) detailing specific safeguards procedures and measures for activities with environmental and/or social impacts; (ii) detailing the types of activities that will not be supported by the Project; (iii) detailing the types of activities that may only be permitted in conjunction with specific safeguards procedures; and (iv) outlining institutional and monitoring arrangements. The KRLP ESSF complies with the safeguard requirements of the International Development Agency of the WB. The WB has categorized the KRLP as a ‘Category B’project. The activities proposed for the different components will involve only small scale civil works, for which no major negative impacts on the local environment and local communities are expected. Out of the WB safeguard policies, four policies are triggered: Environmental Assessment (OP 4.01); Pest Management (OP 4.09); Indigenous Peoples (OP 4.10); and Involuntary Resettlement (OP 4.12). Additionally, the applicability of the policy on the Natural Habitats (OP 4.04) will need to be determined during implementation of the KRLP. It is anticipated that most aspects related to the OP 4.04 can be addressed as part of the Environmental Assessment (OP 4.01), Indigenous People (OP 4.10), and Involuntary Resettlement (OP 4.12). Moreover, the ESSF aims at ensuring that all KRLP project activities and investments will comply with the Lao regulatory Framework, notably the Environmental Protection Law (1999) and its Implementing Decree (2002), the Decree on Environmental Impact Assessment (EIA, 2000), the Decree on the Compensation and Resettlement of People Affected by Development Projects (2005) and the Regulations for Implementing Decree 192/PM on Compensation and Resettlement of People Affected by Development Projects (2005), and the Forest Law (1996), complemented by the Decision of the Prime Minister in April 2007 on the Endorsement of the outcome of the Nationwide Forest Conference, held in April 2007, and Regulations No. 886/AF (10 March, 2000) and Regulation No. 1503/AF (29 November, 2000) regarding the management and use of pesticides and fertilizers, respectively.


Application of a ‘Negative List’ Moreover, the KRLP will apply a ‘negative list’ with a number of non-eligible activities to avoid adverse social and environmental impacts which cannot be adequately mitigated or are not eligible for WB Financing. The KRLP negative list, as part of the KRLP ESSF, will be considered as the first safeguard screening for all proposed project activities. Eligible activities, within the scope of the KRLP, will be approved if appropriate safeguard measures are incorporated and into the design of the proposed activities and monitoring arrangements.

Screening Process All proposed KRLP project activities will undergo a rapid safeguard screening prior to their approval and implementation, while the subsequent safeguard approval will be given per entire package of activities under the responsibility of a certain (single) local government (e.g. Provincial or District). The overall screening procedures for activities considered for KRLP support are illustrated in Error! Reference source not found..During the technical screening the Project staff will identify the safeguard issues to be addressed and documents to be prepared (see Table 5). The KRLP staff will discuss with the respective agencies on the logistical arrangements for incorporation of the identified safeguard issues and document preparation. Finally, upon the satisfactory preparation of the required documents and incorporation the safeguard recommendations into the proposed activities, the Project Staff will ensure that all formal approvals and clearances are obtained by the responsible agencies or local governments.


Table 5 - Determination of Safeguard Document Requirements Screening section

Potential Issues Mitigation Measures

Sub-Grant scope and objectives

Part of the activities are part of the KRLP Negative List

Discuss with the applicant how to improve the activity, or reject the proposal.

Safety concerns UXO presence is reported in the proposed project area.

Conduct an assessment of the UXO presence and discuss with UXO Lao for the removal. Construction activities are not allowed prior to UXO Lao clearance.

Social Safeguards

The Project involves land acquisition, relocation, indirect loss of access and assets, or has negative impacts on ethnic groups.

Apply the ESSF to determine the social safeguard documents to be prepared. Consult with the World Bank on the preparation of the documents. Obtain World Bank clearance prior to starting the project activities.

Environmental Safeguards

The project will involve minor construction activities.

Attach the signed KRLP screening form and Code of Practice for Contractors to the grant agreement and contractors contract. Include references to the safeguard documents in possible bidding documents.

The project will involve significant construction activities.

Prepare an EMP or IEE report, depending on the size of the construction activities. Attach the EMP/IEE and Code of Practice for Contractors to the grant agreement and bidding documents. Obtain World Bank clearance prior to starting the project activities.

The project will use water from the NT2 downstream canal, Nam Kathang, or XBF.

Obtain water quality monitoring reports from NT2 and ensure that the water quality complies with FAO irrigation water quality standards. Organize consultations with communities to ensure that there are no aesthetic concerns. Prepare an Environmental Management Plan, to be attached to the grant agreement and included/referenced in the bidding documents.

Water usage by farmers will increase (and possible pesticide usage).

Organize consultations with the farmer groups to explain the KRLP PMP. Ensure that NAFRI is providing support to organize awareness and training activities. Prepare an Environmental Management Plan, to be attached to the grant agreement and included/referenced in the bidding


documents. Other No safeguard issues

are identified. Attach the signed screening form and Code of Practice for Contractors to the grant agreement and contractors contract. Include references to the safeguard documents in possible bidding documents.

Formal UXO Removal The GoL is committed to ensure that all necessary safety and security measures are respected for all new KRLP activities to be implemented. The GoL will support all necessary actions to remove unexploded ordnance (UXO) from the area prior to any civil works. Construction will not take place in an area which poses a security threat. In consistency with the KRLP ESSF, the local governments and communities should be responsible for making sure that the activities they propose are not in UXO contaminated areas. Communities are best placed to know about UXO areas in their vicinity, and have a strong incentive to report them accurately as they will be involved in carrying and supervision of the works themselves. During the Safeguard Screening, questions are asked about the presence of UXO in the area. If UXOs are reported, the communities, with support of the KRLP staff, will be required to contact the Lao National Unexploded Ordnance Program4 (UXO Lao) to complete a survey/questionnaire regarding the suspected presence of UXO in the area where KRLP projects will be implemented. This questionnaire, as included in the KRLP ESS Manual (under separate cover) should be formally endorsed by the Village representatives and/or Local Government. As elaborated in the KRLP Safeguard Manual, the UXO removal procedures will be decided upon by the UXO Lao and a formal clearance will be provided. The survey results and UXO Lao clearance will become mandatory attachments to the project documents and subsequent grant agreement. The document will also be attached to the construction contracts. Financing agreements with the communities should make clear that communities are solely liable in case of a UXO-related accident. Table 6 summarizes the general safety procedures will be applied for the selection and development of KRLP activities. More detailed procedures are included in the KRLP ESS Manual.

4 The Lao National Unexploded Ordnance Program (UXO Lao) was established by Prime Minister’s Decree #49 dated 13 February 1996 with the support of UNDP, UNICEF, and other stakeholders. UXO Lao is a project of National Execution and a department under the Ministry of Labor and Social Welfare. The organization is the responsibility of the UXO Lao National Program Director who directly reports to the Minister of Labor and Social Welfare. Its mandate is to reduce the number of casualties caused by unexploded ordnance, and increase the amount of land available for food production and other socio-economic development activities. The organization works in nine of the most heavily UXO impacted provinces in the country. A UXO Lao Steering Committee was set up consisting of representatives of relevant ministries and affected provinces.


Table 6 – UXO safety procedures for KRLP Activity preparation

During the Safeguard Screening

Step to be taken:

If the local Government and/or community members certify that there is no known UXO contamination in the proposed area.

1. The Local Government and/or Community representatives co-sign the Safeguard Screening Form

2. The Local Government and/or Community representatives take full responsibility for the assessment, and external organizations cannot be made liable in case of an accident.

If the Local Government and/or community members suspect that UXOs may be present in the proposed area.

1. The Local Government and Communities will complete the UXO Questionnaire and develop a UXO Clearance plan, in cooperation with UXO Lao.

2. If the local government and/or community have included an UXO Lao (or by a UXO action organization accredited by UXO LAO) assessment/clearance task as part of the proposed project, the project can go ahead for selection.

3. If the Local Government and/or community have not included an UXO Lao (or by a UXO action organization accredited by UXO LAO) assessment/clearance task as part of the proposed project, the clearance plan should still be prepared prior to the approval of the activity by the KRLP.

4. UXO clearance tasks must be implemented by UXO LAO or by a UXO action organization accredited by UXO LAO. Communities are not allowed to clear UXOs by themselves (and subsequent funding by KRLP funded projects shall be reduced or cancelled if they elect to clear UXO on their own).

Application of a ‘Code of Practice’ for all Construction works Generally, by applying proper construction procedures many impacts which are normally unavoidable as part of the development process can be mitigated satisfactorily. As such, the KRLP will apply a standard Code of Practice, which described the construction practices to be complied with. The Code of Practice, as included in the KRLP ESS Manual, will be attached as part of the grant agreements and contractors contracts/bidding documents.


A paragraph similar to the statements below will be added in all the bidding documents:

“The Implementation Organization: • Shall be responsible for implementing the Sub-Project according to the

specifications, Sub-Project description, implementation schedule and costs contained in this contract and its attachments.

• Shall comply with guidelines/instructions stated in the KRLP Environmental and Social Safeguard Framework (ESSF) and the KRLP Code of Practice for Construction works, as provided and periodically updated by the KRLP Staff/Advisors and other authorized World Bank personnel.

• Shall ascertain and conform in all respects with the provisions of laws, rules and regulations of Lao PDR, which may be applicable to the Project such as, but not limited to, safety and security of all grant implementation operations, methods of construction, traffic regulations, and environmental/social protection.

• Shall be solely responsible for any work accidents, injuries, liabilities, damages which might result from the execution of the Sub-Project.”

Specific Mitigation Measures for Component 1 No additional specific mitigation are considered necessary to implement the small scale infrastructure anticipated for Component 1. The application of the standard safeguards screening, with emphasis on the UXO risks and clearance procedures, and the attachment of the KRLP Code of Practice is deemed appropriate to mitigate all anticipated impacts. The identified measures have been discussed with the Provincial and District Governments, and consultations have been held with a selected number of communities in the project area. Subsequently, an Environmental Mitigation and Monitoring Plan (EMOP) has been prepared (Table 8). The main social impacts are briefly mentioned, while further details are included in the KRLP Social Assessment Report.

Specific Mitigation Measures for Component 2 The Environmental Management and Monitoring Plan for Component 2 is given in Table 9. Additional to the application of the standard safeguards screening and the integration of the KRLP Code of Practice into the bidding and contract documents, selected mitigation measures are elaborated below. These include the disposal of dredge material of the Tha Thot reservoir, control of pesticide/fertilizer usage, and the application of the FAO/WHO water quality guidelines.

Disposal of dredge materials The rehabilitation of the Tha Thot reservoir will require the disposal of a limited amount of dredge material. The exact quantity is still to be determined through the carrying out of


a more detailed assessment and design as part of the preparation of the Sub-component 2.1. No disposal sites have been identified at this moment. it is proposed to discuss with the NT2 Project to use one of the disposal sites already approved by the GoL and WB. No problems are anticipated with the cooperation with NT2 project, considering the small amount of material which may have to be disposed off.

Control of the usage of Pesticides and Fertilizers The KRLP will address the risks of increased pesticide usage through: (i) the promotion of organic farming practices, and (ii) the application of a list of pesticides not acceptable under the KRLP as part of a simple KRLP Pest Management Plan. It is considered not justified to introduce a comprehensive Integrated Pest Management program through the KRLP because: (i) the irrigation schemes to be rehabilitated by the KRLP are very small; (ii) the usage of pesticides and fertilizers in Lao PDR are low as compared to other countries, and (iii) the critical factor in Lao PDR appears to be the poor legislation and analytical capacities. Lao PDR was the only country in Asia without adequate laboratories to analyze pesticide usage (FAO, 2005). Efforts to improve Pest management in Lao PDR should be addressed through larger scale national or provincial programs to improve legislation and laboratory capacity. Selected programs are already ongoing as part of the cooperation with the relevant agencies. In compliance with the WB Pest Management Safeguard Policy (OP 4.09), the Project will promote organic farming approach and apply a simple Pest Management Plan (PMP), as provided in the Integrated Pest Management (IPM) Procedural Guidelines of the KRLP ESSF. The KRLP will apply the similar IPM approach as described in the NT2 Pest Management Plan (Annex M of the EAMP). The KRLP PMP focuses on the agriculture impacts of the proposed activities under Component 2: Development of Irrigation in the lower Xe Ban Fai area. Anticipated negative impacts relevant to WB 4.09 for KRLP Component 1 (potentially covering the entire Khammouane Province) are considered minimal and do not warrant a separate PMP. The objective of the PMP is to promote organic farming practices and that pesticide use is minimized or avoided where possible and that any use is an intelligent and considered part of an IPM approach. This has indeed also been the policy of NAFES since 1994, therefore it is proposed to mitigate agricultural impacts, resulting from an increase in or inappropriate use of synthetic chemicals, by supporting NAFES to implement a program of IPM training in geographical areas relevant to the Project. The KRLP will allow and prohibit the same listing of Pesticides, as established and applied by the NTPC. Given pesticide availability is limited by the size of the market in Lao PDR, pesticides used by farmers within the Project area will be those registered in neighboring Thailand and Vietnam, and may or may not be registered in Lao PDR. Both neighboring countries have effective and up to date registration and regulatory systems. Thus pesticides acceptable for use in areas where KRLP supported activities will be


implemented must satisfy the following criteria: (i) Registered in Lao PDR for the use in question and not on the Category I (WHO) list; and/or (ii) Registered in Thailand for the use in question; and/or (iii) Registered in Vietnam for the use in question; and (iv) Not banned in Lao PDR. The listing of pesticides not acceptable for the KRLP is given in the KRLP ESS Manual. Approximately sixty pesticides have been banned or have been subject to restricted registration throughout the world. These pesticides are not banned in Lao PDR, and there is no suggestion here that they need to be. The ESS Manual includes an overview of the active ingredients with restrictions in Asia/Pacific countries as well as those banned in Lao PDR. The use of these active ingredients will not be acceptable to the KLRP. Three pesticides of interest but not acceptable to KRLP are: • Endosulfan is one of the most highly toxic insecticides to aquatic life. It’s use to

control a pest of increasing importance in Lao PDR, the golden apple snail, has been noted and will certainly increase, so endangering fish. In Thailand endosulfan is not registered for snail control but is used for that purpose, being readily available on the farm because it is registered for other uses. Fish kill in areas where it has become carelessly used is of great concern. This insecticide should definitely not be used nor stored or transported in any area relating to the Project, and for the general good should immediately be banned in Lao PDR;

• Methamidophos was banned in Thailand in April 2003. The hasty nature of the banning demanded the immediate removal of stocks from distributors shelves. This may be unenforceable however. Its use in Lao PDR may thus be expected for a further two or three years, as will also occur in Thailand, as stocks in the Thai distribution channel are used up. Its listing in PIC relates to liquid formulations of 60% or higher; and

• Monocrotophos was banned in Thailand in 1999; any usage in Lao PDR since then is the result of stocks in the long distribution channel. PIC listing relates to liquid formulations of 60% or higher.

Application of FAO/WHO Water Quality Guidelines In the absence of National Water Quality Standards for Irrigation, the KRLP will adopt the FAO Water Quality Guidelines for Irrigation, first published in 1985 and updated in 1994. The FAO Guidelines are given in the KRLP ESS Manual. The key relevant parameters for the KRLP irrigation sub-components may be Nitrogen and pH. Other parameters have not been identified as a risk for the use of the water for irrigation purposes. As the irrigation water may be used for other purposes also, e.g. for washing, fishing, and animal watering, aesthetic quality of the water is also important. As specified in the Guidelines for Drinking-Water Quality of the World Health Organization, the relevant parameters that may give rise to complaints from consumers are ammonia5 and

5 The term ammonia includes the non-ionized (NH3) and ionized (NH4+) species. Ammonia in the environment originates from metabolic, agricultural, and industrial processes and from disinfection with chloramine. Natural levels in ground and surface waters are usually below 0.2


dissolved oxygen Ammonia in drinking-water is not of immediate health relevance, and therefore no health-based guideline value is proposed. However, ammonia can compromise disinfection efficiency, result in nitrite formation in distribution systems, cause the failure of filters for the removal of manganese, and cause taste and odor problems. The guideline value for Ammonia related to odor and taste is 1.5 mg/l. It should be noted that the water is not intended to be used as drinking water, but the guidelines are used as a comparison with the predicted water quality in the downstream canal and XBF. No health-based guideline value is recommended for dissolved oxygen in drinking-water. However, a dissolved oxygen content substantially lower than the saturation concentration may be indicative of poor water quality. Comparing the above adopted KRLP standards and the results of the water quality modeling, it can be concluded that it is unlikely that the water quality of the downstream channel/Nam Kathang and the XBF will pose irrigation risks or aesthetic concerns. However, it is recommended to assess the actual water quality and compare the results with the FAO and WHO guidelines prior to any formal agreement on the irrigation system to be constructed or rehabilitated. Detailed water quality data will be available as part of the NT2 project. The NTPC will implement a Water Quality Monitoring and Assessment Program (WQMAP), which commenced early in 2005. The overall aims of the Program are to: i) achieve effective collection, analysis, interpretation and presentation of water quality, ii) monitor whether NTPC is fulfilling its obligations stated in the Concession Agreement; and iii) assist in the formulation of appropriate mitigation measures and adaptive management strategies to help reduce the impact of any deterioration in water quality that may result from Project activities. The monthly WQMAP reports will serve primarily as an assessment of water quality, but also to facilitate the development and management decisions for other program (e.g. the KRLP). The suite of proposed parameters for surface water monitoring include: Temperature, pH, Total Suspended Solids, Nitrate, Calcium, Silica, Total Iron, Lead, Fecal Coliforms, Dissolved Oxygen, Conductivity, Alkalinity, Nitrite, Total Phosphorus, Potassium, Magnesium, Mercury, Biological Oxygen Demand (BOD), Climatic conditions, Turbidity, Ammonia, Sodium, Manganese, Arsenic, and Chemical Oxygen Demand (COD).

Institutional Arrangements Overall responsibility for the compliance with the IEE is shared between the Provincial Coordination Section (PCS) for Component 1, and the Department of Irrigation (DoI) for Component 2. A provincial Project Coordination Section (PCS) within the Department of Planning and Investment (DPI) is to be established and headed by its director as the provincial program director (PPD). The PCS will be responsible for overall

mg/litre. Anaerobic ground waters may contain up to 3 mg/litre. Intensive rearing of farm animals can give rise to much higher levels in surface water. Ammonia contamination can also arise from cement mortar pipe linings. Ammonia in water is an indicator of possible bacterial, sewage, and animal waste pollution.


implementation of Component 1, while the responsibility for day-to-day implementation of activities will be assigned to relevant provincial line departments and to districts –particularly with regard to DDF/PDF-related activities and to VLS activities. For Component 2, the DoI will be fully responsible for overall implementation. However, day-to-day management of all activities would be delegated to Provincial Agriculture and Forestry Office (PAFO). A small ‘Downstream Irrigation Management Section’ would be established within the PAFO to manage: preparation of technical reports (feasibility, detailed design), procurement of civil works, carrying out capacity building, as well as developing a master plan. The PCS and DOI will assign Safeguards Coordinators, who will be the central resource person for all safeguards issues. Training programs will be developed to strengthen the capacity of all Project staff and local government partners where appropriate, to deal with environmental and social safeguards issues. Additional to the Safeguards Manual, guidance materials will be adapted and developed to aid the grant recipients in this process, including visual materials and written materials translated into local languages as needed. Necessary changes to the ESSF Procedural Guidelines will be discussed with the WB and subsequently incorporated into the Safeguards Manual and other supporting materials.

Description of Monitoring Program For project activities following the standard safeguard operating procedures, compliance will be verified through visual inspection by the PCS and DoI/PAFO staff, preferably at the mid-point and close. Approved KRLP activities that have triggered specific safeguards procedures and which involve ethnic group issues will be monitored more intensively than standard projects. In all cases the Project staff should carry out a field visit before approval of the activity to verify the physical characteristics of projects with environmental impacts, and/or to verify the consultation process, proposed measures and the views of PAPs in cases of social impacts. Implementation monitoring visits for such grant activities will be carried out at least at the mid-point and close. All monitoring reports from such grant activities and of all specific safeguards documents will be made available in English for review by the Government Agencies, WB supervision missions, and or other external stakeholders, if desired. A summary of grant activities safeguards issues will be included in the quarterly progress reports of the KRLP, to be submitted to the WB. The Government recognizes its current limited capacity to ensure compliance with the ESSF. It emphasizes that there is a need to further strengthen its staff in screening and integrating environmental and social safeguard issues in supported activity implementation. As such, for Component 1, further training for district staff and communities on the application of the ESSF will be provided by the UNCDF technical assistance and the SNV, respectively. Training for staff of the DoI and PAFO will be provided as part of the capacity building component of the Project. Moreover, annual


budgets have been allocated for the different components to enable DoI, PAFO, and PCS staff to carry outs monitoring and supervision tasks.

Implementation Schedule The District Block grants under Component 1 will be implemented in three districts Boualapah (1206), Hinboun (1204), and Nongbok (1203) during the first year, but will be expanded to the all of the nine district in the province over a period of five years. It is expected that the province will adopt the procedures once the GoL officially adopts the DDF. In this way, the project impacts would be sustainable and replicable. Figure 7 – Location map of the Khammouane Districts

The only specific location identified during the preparation stage for the irrigation schemes of Component 2 (XBF irrigation) is Tha Thot irrigation area in Gnomalath surrounding the Namtheun 2 (NT2) downstream channel. Further detailed studies for this sub-component will start immediately upon the effectiveness of the KRLP. Other specific areas for irrigation schemes along the lower XBF will be identified during the project implementation.

Cost estimate and Sources of Funds The total cost for ensuring compliance with the Social and Environmental safeguards during the full 6 year project implementation period is estimated at US$ 20,000. This amount comprises operational costs to carry out monitoring and supervision activities, and capacity building and training for KRLP and local Government staff. The amount is part integrated into the standard operating budgets of the PCS and the DoI/PAFO. The estimated costs per KRLP component is given in Table 7.


Additional safeguard related costs to mitigate potential negative impacts will be integrated into the design and budget for the grants. Table 7 – Estimated costs for ensuring Safeguard Compliance

Description Component 1 Component 2 Total Costs Capacity Building $4,000 $4,000 $8,000 Monitoring and supervision

$5,000 $7,000 $12,000

Total: $9,000 $11,000 $20,000


Table 8 - KRLP Environmental Mitigation and Monitoring Plan for Component 1Concerns Potential Impacts Mitigation Measure Responsibilities Estimated Costs

PRE-CONSTRUCTION PHASE:Endorsement and application of a‘negative list’ list avoid environmentalsensitive projects

Endorsement and application of aKRLP Environmental and SocialSafeguard Framework (ESSF)

Supported projects arenot yet defined at thestart of the KRLP

Miscellaneousunforeseenenvironmental impacts



Preparation and endorsement of aKRLP ‘ESS Manual’, providingtechnical guidance to comply with theKRLP ESSF.


Proper environmentalsafeguard procedures asdefined in the ESSF cannot be complied with.


PCS/DPI

CONSTRUCTION PHASE:Damage to Lands Local erosion Application of KRLP ‘Code of

Practice’ to Provide specifications forappropriate construction practices.

Contractor.Field engineerwill supervise

US$ 4,000 forTraining; thisshould beallocated as theproject costs


Other activities,including UXOclearance arepart of projectcosts.



Pollution Discharges fromConstruction and campsites.





will superviseand report



PCS,Contractor.



Table 9 - KRLP Environmental Mitigation and Monitoring Plan for Component 2Concerns Potential Impacts Mitigation Measure Responsibilities Estimated Costs

PRE-CONSTRUCTION PHASE:Endorsement and application of aKRLP Environmental and SocialSafeguard Framework (ESSF)


Supported projectsare not yet defined atthe start of the KRLP

Miscellaneousunforeseenenvironmentalimpacts

Endorsement and application of a‘negative list’ list avoid environmentalsensitive projects

Endorsement and application of theFAO Water Quality Guidelines forIrrigation.

Water Quality isunknown at the startof the KRLP

Negative impacts onsoils and public healthwhen unsuitable waterquality is used forirrigation

Ensure that ample water quality data isavailable to make a sound decision.


Preparation and endorsement of aKRLP ESS Manual, providing technicalguidance to comply with the KRLPESSF.


Proper environmentalsafeguard proceduresas defined in the ESSFcan not be compliedwith.


DoI/PAFO US$ 4,000 forTraining; this shouldbe allocated as theproject costs


Other activities,including UXOclearance are part ofproject costs



CONSTRUCTION PHASEDownstream wateravailability.

Downstream usersmay experience lackof water

Compliance with maintaining flowrequired for downstream users.

Damage to Landsand natural habitats

Local erosion Application of KRLP ‘Code ofPractice’ for Provide specifications forappropriate construction practices.

Pollution Discharges fromConstruction andcamp sites.





Contractor.

Field engineerwill superviseand report



DoI/PAFO,Contractor.

OPERATION PHASE:Compliance with Negative list for theuse of Pesticides through the KRLPPMP.

Increased pesticideusage.

Damage to publichealth and theenvironment.

Cooperation with NAFRI/NAFES toorganize training for Farmers

DoI/PAFOwith supportfrom the localgovernmentsand in close

All the cost are part ofthe project cost



Overall reduction of pesticide usethrough the promotion and supportorganic farming approaches

cooperationwith Farmerassociationsand the wateruser groups

Water ResourcesManagement andallocation

Downstream wateravailability in theNam Gnom.

Appropriate operation of retention damin Tha Thot

Increase efficiency of operation of thesystem and match supply withrequirement of water users

Public Health Increased of PesticideUsage

Cooperation with NAFRI andprovincial/local government to ensurecompliance with KRLP PestManagement Plan.

Incidence of diseases,such as malaria.

Maintain proper drainage of the area

Periodic flushing of the irrigationchannels

Water UserGroupsassisted byDOI/PAFOand localgovernment



Description of Public Involvement

Consultations Consultations with the key stakeholders and communities were undertaken as part of the project preparation. The key findings of the consultations are: Further details on the consultations are reported in a “Social Impact Assessment Report”.

Public Disclosure The present IEE Report will be disclosed to the public both at Provincial and National levels in Lao PDR, and through the World Bank Resident Mission in Vientiane. The Executive Summary of the IEE report will be made available in the Lao language. It is also the intention of the GoL to make all project documentation publicly available through the PCS and the DOI project offices.

Conclusions and Recommendations From the preceding screening process and analysis of potential environmental impacts, the IEE concludes that the proposed KRLP and its anticipated activities are unlikely to result in any direct significant negative environmental impact. The proposed activities will all comply with the project ‘negative list’, which excludes sub-projects that would have significant negative social or environmental impacts and violate any of World Bank environmental or social safeguard policies. Direct negative potential impacts relate mostly to the construction phase, and particular attention has been given to ensure that contractors comply with good engineering practice and prevent any inconvenience to the public during construction. As summarized in the Environmental Mitigation and Monitoring plan (Table 8), all potential environmental concerns can be properly mitigated. The scope of the proposed construction and rehabilitation works for the KRLP and its anticipated environmental impacts are of a magnitude which does not warrant further extensive studies. As part of the grant preparation process, detailed designs will still be prepared in accordance with the KRLP EMP. Uncertainties in proposed activities are addressed through:

• Application of the KRLP ESSF for all activities which are not yet defined at the start of the KRLP project;

• Application of a standard comprehensive safeguard screening procedures for all prpoposed grant activities, which will identify potential impacts and necessary mitigation measures.


• Close cooperation with the key stakeholders at National and Provincial levels to ensure professional implementation and monitoring approaches (e.g. NAFRI, NTPC, SNV, UN, etc.)

• Usage of a standard KRLP Code of Practice (see the KRLP ESS Manual), to be attached to the construction contracts and grant agreements.

• Strict procedures for possible safety hazard (e.g. UXO removal, see the KRLP ESS Manual);


• Usage of ESS Manual to provide the necessary guidance for the Project staff and local governments on the various safeguard procedures to be followed and documents to be prepared;


• Close supervision by the World Bank to ensure compliance with the ESSF. Public consultations have show that the communities support the project.


References Area Specific References ADB, 2004 – Summary Environmental and Social Impact Assessment Nam Theun 2

Hydroelectric Project in Lao PDR. November 2004 FAO, 2005 - Proceedings of the Asia Regional Workshop on the Implementation,

Monitoring and Observance of the International Code of Conduct on the Distribution and Use of Pesticides. Bangkok, Thailand, 26-28 July 2005.

GoL, 2005 - Lao Country Report. Regional Workshop on International Code of Conduct on the Distribution and Use of Pesticides, 26-28 July 2005 Bangkok, Thailand. (www.fao.org)

NTPC, 2005 – Environmental Assessment and Management Plan (EAMP). www.namtheun2.com.

Provincial Government of Khammouane, 2004 - Provincial Environmental Strategy and Action Plan.

Government Regulations and Policies GOL, 1999 - Environmental Protection Law GOL, 2000 - Decree on Environmental Impact Assessment (EIA) GOL, 2002 - EPL Implementing Decree GOL, 2005 - Decree on the Compensation and Resettlement of People Affected by

Development Projects GOL, 2005 - Regulations for Implementing Decree 192/PM on Compensation and

Resettlement of People Affected by Development Projects (2005) GoL, 2007 - Decision of the Prime Minister on the Endorsement of the outcome of the

Nationwide Forest Conference, held in April 2007. General References and Guidelines FAO, 1985 - Water quality for agriculture. By R.S. Ayers and D.W. Westcot. FAO

Irrigation and Drainage Paper 29 Rev. 1, Reprinted 1989, 1994. (online: www.fao.org/DOCREP/003/T0234E/T0234E00.HTM )

FAO, 1995 - Environmental Impact Assessment of Irrigation and Drainage projects. FAO Irrigation and Drainage paper # 53. Written by T.C. Dougherty and H.R. Wallingford. (online: www.fao.org/docrep/V8350E/V8350E00.htm )

FAO, 2003 - International Code of Conduct on the Distribution and Use of Pesticides (Revised Version). Adopted by the Hundred and Twenty-third Session of the FAO Council in November 2002 (online: www.fao.org/DOCREP/005/Y4544E/Y4544E00.HTM)

ICID, 1993 - The ICID Environmental Check-list. To identify Environmental Effects of Irrigation, Drainage and Flood Control Projects. Compiled by J.F. Mock and P Bolten. (online: http://www.dfid-kar-water.net/w5outputs/output_summary_sheets/icid_env_checklist_os.html )

NAFRI/NUOL, 2005 - Improving Livelihoods in the Uplands of the Lao PDR (online http://www.nafri.org.la/).


World Bank, 1996 - Participation Sourcebook (Online: www.worldbank.org/wbi/sourcebook/sbhome.htm )

World Bank, 1998 - Operational Policy 4.09: Pest ManagementWorld Bank, 1999 - Operational Policy 4.01: Environmental Assessment

• Operational Policy 4.01: Environmental Assessment, 1999• Operational Policy 4.01, Annex A: Definitions, 1999• Operational Policy 4.01, Annex B: Content of an Environmental Assessment

Report for a Category "A" Project, 1999• Operational Policy 4.01, Annex C: Environmental Management Plan, 1999• World Bank Environmental Assessment Website

World Bank, 2001 - Operational Policy 4.12: Involuntary Resettlement: • Operational Policy 4.12: Involuntary Resettlement, 2001• Operational Policy 4.12, Annex A: Involuntary Resettlement Instruments, 2001• World Bank Involuntary Resettlement Website

World Bank, 2003 - Irrigation and Drainage: Development. Irrigation and Drainage. Water Resources and Environment Technical Note E.1 (online: http://go.worldbank.org/U4QZI4LYG0 ).

World Bank, 2003 - Irrigation and Drainage: Rehabilitation. Water Resources and Environment Technical Notes: Irrigation and Drainage. Note E.2 (online: http://go.worldbank.org/U4QZI4LYG0 ).

World Bank, 2004 - Involuntary Resettlement Sourcebook World Bank, 2005 - Operational Policy 4.10: Indigenous Peoples

• Operational Policy 4.10: Indigenous Peoples, July 2005• Operational Policy 4.10, Annex A: Social Assessment, July 2005• Operational Policy 4.10, Annex B: Indigenous Peoples Plan, July 2005• Operational Policy 4.10, Annex C: Indigenous Peoples Planning Framework, July

2005 • World Bank Indigenous People Website

World Bank, 2007 - Social and Environmental Sustainability of Agriculture and Rural Development Investments: A Monitoring and Evaluation Toolkit. (online: http://siteresources.worldbank.org/INTARD/Resources/ESmetoolkit.pdf )

World Health Organization, 2004 - The WHO recommended classification of pesticides by hazard and guidelines to classification. Corrigenda of 12 April 2005 and 28 June 2006. (Online: www.who.int/ipcs/publications/pesticides_hazard/en/ )


Annex I – Description of Tha Thot Irrigation Scheme The potential irrigation development area of the Tha Thot area is estimated at 1,200 ha in total, divided into five (5) sub-schemes (see Figure 8). The estimated areas of each sub-scheme are summarized in Table 10. Among the 5 sub-schemes, only Sub-scheme No.1 must be irrigated by using pumps; all the other sub-schemes can be irrigated by gravity depending on the head of water released from the Regulating Dam. Among the 5 sub-schemes, Sub-scheme No.3 is the existing Tha Thot irrigation system covering about 470 ha of the command area in total. During the pre-feasibility study, GoL and NTPC agreed that one of the two (2) outlets at the Regulating Dam will have a capacity of 3.18 m3/s for releasing water to the Tha Thot area of 1,200 ha. The outlet for the Tha Thot area will be further divided into 2 outlets, one of which will have a capacity of 1.52 m3/s for the right bank of the Downstream Channel and the other of which will have a capacity of 1.66 m3/s for the left bank of the Downstream Channel. Figure 8 – Topographic map of the Tha Thot Irrigation area



Table 10 - Irrigation Development of Tha Thot Area by Sub-Scheme Sub-

Scheme Area (ha)

Water Source Location Main Villages

No.1 130 (P), */

Released water from RD; (P),*/ to be irrigated by pump

The northernmost part of the right bank of DC

B.Lao; B.Sivilai

No.2 130 Released water from RD

North (left bank) of the existing Tha Thot left main canal, right bank of DC

B. Lao

No.3 (170) Nam Gnom river + (Released water from RD)

Existing Tha Thot irrigation scheme, right bank of DC

B.Thathot; B.Phonkham

(300) Nam Gnom river + (Released water from RD)

Existing Tha Thot irrigation scheme, left bank of DC

B.Latkhouay; B.Thongmang;B.Houayhat

470 No.4 120 Released water

from RD The north (left bank) of the existing Tha Thot left main canal, left bank of DC

B.Nongseng

No.5 350 Released water from RD

Right bank of Nam Kathang river; East side of Road No. 8B

B.Sangkeut; B.That; (B.Houayhat)

Total 1,200 Note: RD: Regulating Dam, DC: Downstream Channel The Tha Thot Irrigation Scheme was constructed in the late 1980s. The scheme has been providing critical irrigation services to about 470 ha of the command areas in the wet season and about 280 ha in the dry season, mainly for rice farming during both seasons. The 8 beneficiary villages (Ban Thathot-Neua, Ban Thathot-Tay, Ban Kobong, Ban Lao Na-ngam, Ban Nongseng, Ban Phonelatkhouay, Ban Watthat and Ban Thongmang) have a total population of about 3,000 and over 600 households. A brief rural appraisal indicates a strong local interest in the rehabilitation work, as communities have long been engaged in intensive rice cultivation and have suffered from serious drought during the dry seasons.

The head work of the scheme is a concrete weir with 50 m crest length and 2 sluice gates of size 1.5 m x 1.5 m. The intake structure of the main canal (2 gates of size 1.0 m x 2.0 m) is located about 180 m upstream of the weir to convey the irrigation water to two (2) secondary canals through a 3.3 km length of main canal. While the system is still being used, most of it has deteriorated seriously and needs major rehabilitation, including repairs to the reservoir and the canal system. The access tracks of 4 km length between villages need improvement, as they are unusable during the wet season. Originally, rehabilitation of the scheme had been expected to take place (in the early 2000s) within the framework of the on-going Agriculture Development Project (ADP).


However, rehabilitation of the scheme was dropped as it would be affected by the Downstream Channel to be constructed for the NT2 hydropower project. The restoration of the main irrigation canals of the scheme should be completed shortly, and the Government and the province have put the rehabilitation of the Tha Thot Scheme high on their list of priorities. A siphon of the tertiary canal 3 (TC-3) on the Downstream Channel has been constructed and another siphon of the left main canal (LMC) on the Downstream Channel is to be constructed by NTPC during this coming dry season (2007-08) in order to avoid disruption of irrigation for the next dry season rice farming.


Annex II – Agricultural Pest Management Practices in Lao PDR and Khammouane


Agriculture In general, pest attack on agricultural crops is low in Lao PDR. Although there is a range of pests mentioned both by farmers, officials and in the literature, these are rarely of economic importance, except perhaps in some cases for vegetables. Pests of Rice. There is a rich arthropod fauna in the rice crop in Lao PDR – probably the richest in the world, as summarized in the NT2 EAMP. The current impact from these pests is low. Insects that have the potential to be pests and indeed are in neighboring countries are not pests in Lao PDR, being kept at low levels by the rich biodiversity of predators and parasites. There appears to be a stable ecological balance in the crop. The main insect pests reported are: • The brown plant hopper, Nilaparvata lugens, is possibly the most widespread dry

season pest but only when there is an outbreak. The last significant outbreak occurred in 1990/91 when more than 40% of the irrigated crop was damaged;

• The stemborer, mainly Scirpophaga incertulas, occurs in the dry season irrigated crop but rarely cause economically important damage (IRRI, 1998);

• The gall midge, Orseolia oryzae occurs in the wet season lowland crop. Lao-IRRI has confirmed that the gall midge can cause severe yield losses, with total crop loss sometimes being reported. The worst affected areas are the Phalanxay District of Savannakhet Province and, to a lesser degree, Phiang District of Sayabouly Province;

• The rice bug, Leptocorisa oratorius occurs in both wet and dry season lowland crops. In general, the rice bug does not reach economically important levels, but in the Mekong Valley it appears to be of increasing importance. Its presence has been indicated in the XBF area (Morton, 2003) and on the Nakai Plateau (T. Taipangnavong, pers. comm. in Morton, 2003);

• An armyworm, probably Spodoptera mauritia acronyctoides, occurs in flood prone areas including parts of Khammouane Province;

• The golden apple snail first became a problem on dry season rice in Vientiane Province in 1992 and it has now spread to seven provinces;

• Rats are reported to be a significant problem in some areas, particularly in upland rice. A CARE survey reported rats a “problem” in the NTT NBCA watershed area (Chamberlain et al., 1996). Supported by the government of Australia, a program to evaluate this problem started in 2000;

• The only rice disease reported by officials and farmers in the XBF region is brown spot disease, Cochliobolus miyabeanus, alt. Helminthosporium oryzae, especially in conditions of water stress. This disease is associated with soil conditions of induced or real potassium (K) deficiency, or when inappropriate varieties are used or when chemical fertilizers without a K component are used; and


• Another rice disease mentioned by XBF farmers is “jumping spot” – a leaf spot disease that spreads within a few days over an entire paddy. The identity of this disease has not been ascertained.

Current Pest Management for Rice Pesticides. Across the country there is very little pesticide use per unit area of rice. A recent survey indicated that in Savannakhet 50% of farmers sprayed rice one or more times per year, with 25% sprayed once and 25% sprayed more than once (Heong et al., 2001). Heong et al. (2001) suggested that insecticide use is more prevalent in the XBF plain, where the influence of farming practice in Thailand and the intensity of rice production is greater than further upstream in Mahaxay and Gnommalat Districts. However, in the XBF plain usage is nevertheless still low, with some blanket spraying against brown plant hopper in the dry season but generally being restricted to spot sprays of particularly severe infestations, of for example rice bug, Leptocorisa oratorius. Stocks of pesticide do not appear to be kept on the farm (nor in local dealers) as the products are easily accessed from Thailand. As the distance from the Mekong River increases so the awareness and use of pesticides declines. In Mahaxay no farmers reported using them. However, the situation is changing and the amount of insecticide use in rice has increased in the last five years, possibly doubled (Heong et al., 2001). Such a situation is in accord with expectation. Lao PDR government policy has been effective in increasing the area and intensity of rice production in the lowlands during the last five years. It has been observed in many countries that increasing insecticidal input occurs, partly to protect the extra investment in the dry season irrigated crop, but partly because double cropping leads to an increase in the number and intensity of pests attacking the crop. It is thus very likely from circumstantial evidence that insecticide use, though still relatively light, is increasing year by year. Other Pest Management Activities. Communities have adopted methods other than the use of synthetic chemicals to manage the presence of pest in their rice crop. Current non-chemical pest management activities conducted in the Project area can be summarized as:

• Golden apple snail: there is some pesticide use, though in the area influenced by the Project farmers and officials report that snails are collected for human consumption. All farmers knew that letting the paddy dry out can drastically reduce the population;

• Rats: although there have been two human mortalities reported from the accidental ingestion of rodenticidal baits, anecdotal evidence and observation of dead rats for sale at the road side on the Nakai Plateau suggests some people consider them as food and actively trap with snares rather than use chemicals;

• Rice diseases are rarely treated with chemicals. Officials and farmers in the XBF did not report any fungicide treatment of rice disease; and


• Weed control with herbicides is very rare but there are some farmers using them. One farmer near Nongbok, lower XBF, reported spot spraying in some years on the paddy field before transplanting.

Pests of Vegetables Morton (2003) identified the main vegetable pests and diseases in the Project area, as further detailed in the NT2 EAMP. As in most of S.E Asia the most problematic pest is the diamond back moth, Plutella xylostella, on cabbages, other cruciferae, and some other plants. Current Pest Management for Vegetables. In Lao PDR there is believed to be significant use of pesticides on vegetables. Most pesticide use is insecticides and most of this occurs in districts along the Mekong and also around the capital Vientiane and other major towns. A baseline survey for the Vegetable IPM program which investigated the spray frequency (Kumar, 2001) indicated that Khammouane Province does not have the most intensive pesticide use in Lao PDR. The number of treatments applied in Khammouane Province is not excessive, but suggests that every farmer treats his vegetables, with insecticides being the predominant treatment. The villages on which the survey was based were almost entirely in Thakhek District, but the information is likely to apply to all of the XBF plain. It is likely that in the less intensive agriculture around Mahaxay and Gnommalat little is applied. In general where produce is grown for the use of the farmer’s family little or no treatments are made; where it is destined for trade, such as in the XBF plain, it receives some treatment. There has been no analysis of pesticide residues in fresh produce in Lao PDR. There are no facilities for this. Intensive preventative treatment of vegetables can sometimes lead to pests developing resistance mechanisms, which in turn can leads to further treatment and unacceptable residues in the produce. This level of treatment has not yet occurred in Lao PDR and the approaches being developed to avoid it include the use of “softer” pesticides such as Bacillus thuringiensis, a clear awareness of pest identity, the tolerance of the crop to pest attack, and biological control. Inorganic & Organic Fertilizers Inorganic fertilizers are used in the more permanent agricultural areas of Gnommalat, Mahaxay and XBF Districts, but not at all in the shifting cultivation agricultural practices of the Nakai Plateau and NNT NBCA. Where used it is predominately on the dry season rice crop, but in the XBF it is also used in the wet season. The type of usage varies according to the recommendations of MAF extension workers and availability locally. Farmers mentioned using an NPK 16-20-0 compound fertilizer to “prime” the land at around 200-350kg/ha followed by urea 46-0-0


at around 50kg/ha. These fertilizers contains no K, making the rice susceptible to diseases such as brown spot disease in K deficient conditions. Farmers and officials in the XBF plain indicated that inorganic fertilizer use appears to follow no particular guidelines with respect to soil analyses or the analysis and usefulness of organic fertilizer (Morton, 2003). Some inorganic compound fertilizers appear to be available in a locality on the basis of availability from donors rather than local need. Organic fertilizers, commercially available or made on the farm, that are available in the XBF area do not appear to have been analyzed. This may be an over simplification of the position, nevertheless the true need for organic fertilizer does not seem to be understood by farmers on the XBF. In XBF plain organic fertilizer, mainly manure, is used with inorganic fertilizer at around 250 kg/ha; a relative low rate, but beneficial if applied annually.

Regulatory Framework In 2000, Regulation on Use and Management of Pesticides in Lao PDR, No. 0886/MAF, dated 10 March 2000 was promulgated by the Ministry of Agriculture and Forestry with the objective of managing all kinds of pesticides in the country. This has been used as the reference for the pesticides management. The WHO Recommended Classification of Pesticide by Hazard and FAO Guideline to Classification 1994-1995 were recognized by the Government of Lao PDR. In 2002, Plant Protection Center was established for the purpose of testing pre and post harvest agriculture inputs, testing of chemical residues in agricultural products, testing of the imported pesticides, monitoring and diagnosis of the insects and their outbreak. Since there is a lack of technical staff and equipments, work at the center is currently implemented in very limited aspects. All kinds of pesticides imported and used or exported through Lao PDR are under the responsibility and control of the Ministry of Agriculture and Forestry, which is the main mandate of the Department of Agriculture. Both public and private sectors who has the purpose to import or export pesticides have to be granted by Ministry of Agriculture and Forestry. The Department of Agriculture is responsible for legislation of all kinds of imported pesticides. Therefore, all shops who import pesticides for distribution in Lao PDR have to make formal registration of the pesticides such as quality, country of origin and simple of the imported pesticides and submitted to Department of Agriculture for registration and import permission. List of pesticides divided into 6 groups as follows: Insecticides for thrips and insect control (19 kinds), Pesticides for rat control (3 kinds), Pesticides for golden apple snail (3 kinds), Fungicides (10 kinds), Herbicides (5 kinds), and Pesticides for nematode (2 kinds). There are also 26 kinds of pesticides which are prohibited for usage in Lao PDR.

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