Environmental and Social Obligations of Investment Companies

Mr. Orlahanh BOUNGNAPHALOMDepartment of Environmental and Social Impact

Assessment (DESIA)Ministry of Natural Resources and Environment

Background• Law on Environmental

Protection (Amended), No.29/NA 2012, specifically Article 21 and 22

• Issuance of Ministerial Instruction 8029 on IEE and 8030 on ESIA

• Issuance of Ministerial Instruction 8056 on List of Projects

Duties and Responsibilities of the Company

Compliance with all relevant legislation for the protection of the natural environment and affected communities, including:• Avoidance of environmental and social impacts as

a first priority• Minimization of unavoidable impacts• Mitigation, compensation and restoration of all

unavoidable impacts• Provision of all necessary funding for impact

assessment, monitoring, compliance and restoration

Screening of Investment Projects

Direct Preparation of Environmental and

Social Management and Monitoring Plan

Insignificant impacts anticipated

Small-scale projects

Initial Environmental Examination (IEE)

Examples:

Hydropower 1-15 MW or reservoir <2 million m3

Commercial Tree Plantations 20-200 ha

Commercial agricultural plantations 20-400 ha

Environmental and Social Impact

Assessment (ESIA)

Examples:

Hydropower >15 MW

Commercial tree plantations >200 ha

Commercial agricultural plantations >400 ha

All mining operations using hazardous chemicals

The other factors that shall be taken into consideration during screening are(i) Project Location – in the Socially and Environmentally Valuable Site? and

(ii) Impact on Compensation and Resettlement?

Initial Environmental Examination (IEE) Process

1. Company prepares IEE Report and ESMMP, in

consultation with affected persons and relevant

agencies

2. Administrative review of IEE report and ESMMP by Provincial Department of Natural Resources and Environment (DONRE)

3. Technical review of IEE and ESMMP b y DONRE,

in consultation with affected persons and

relevant agencies

4. DONRE issues ECC to project company

Sends to DONRE

Approved

Approved

Revisions requested by DONRE

10 working days

40 working days

Environmental and Social Impact Assessment (ESIA) Process

1. Company prepares Terms of Reference and

Scope of Study

2. Ministry of Natural Resources and

Environment (MONRE) Reviews

3. Company prepares ESIA and ESMMP in

consultation with Project Affected Persons and other stakeholders.

4. MONRE conducts administrative review

5. Technical review of IEE and ESMMP by MONRE, in consultation with affected persons and other stakeholders, including national and

provincial meetings and site visits

6. MONRE issues ECC to company

Sends to MONRE

Approved

Approved

Sends to MONRE

Approved

Revisions requested

Revisions

Revi

sion

s

Complicated projects required to prepare separate ESMMP for the Construction Phases.

MONRE appoints a Technical Review Committee (120 days).

15 working days10 working days

95 working days

Public Involvement in the ESIA Process

• Full public disclosure of all likely or potential impacts• Ensuring community consultation in impact

assessment, monitoring, compliance and project closure

• Free prior and informed consent of all project affected persons

• Ensuring rights of communities• Ensuring grievance mechanisms are honored

Steps Forward• Revision of the Resettlement Decree (expected

2015)• Public Involvement Guidelines (expected 2015)• ESIA Law under consideration

Thank you.