Summary Environmental Impact Assessment Project Number: 36352-01 August 2006

Viet Nam: Song Bung 4 Hydropower Project Phase II

Environmental Assessment Report

Prepared by the Government of Viet Nam for the Asian Development Bank (ADB).

The summary environmental impact assessment is a document of the borrower. The views expressed herein do not necessarily represent those of ADB’s Board of Directors, Management, or staff, and may be preliminary in nature.

CURRENCY EQUIVALENTS as of 21 July 2006

Currency Unit – dong (D)

D1.00 = $0.00006248 $1.00 = D16,004

ABBREVIATIONS ADB – Asian Development Bank AP – affected person asl – above sea level CBFM – community-based forest management COS – conservation off-set DONRE – Department of Natural Resources and Environment EA – executing agency EIA – environmental impact assessment EMP – environmental management plan EMU – environment management unit EVN – Electricity of Vietnam FAP – fish and aquatic product FSL – full supply level GMS – Greater Mekong Subregion HPP – hydropower project HPPMB 3 – Hydropower Project Management Board No. 3 IA – implementing agency MOL – minimum operation level MONRE – Ministry of Natural Resources and Environment NHP – National Hydropower Plan NTFP – non timber forest product PECC3 – Power Engineering Consulting Company No. 3 PPTA – project preparatory technical assistance SEIA – summary environmental impact assessment STNRMB – Song Thanh Nature Reserve Management Board TA – technical assistance TCVN – Vietnamese Standard

WEIGHTS AND MEASURES

µg/g – microgram per gram µg/l – microgram per liter dBA – A-weighted decibels kV – kilovolt (1,000 volts) TWh – terawatt-hour kW – kilowatt (1,000 watts) kWh – kilowatt-hour (1,000 watt-hours) m3/s – cubic meters per second

mg/l – milligram per liter mg/m3 – Milligram per cubic meter MW – megawatt (1,000 watts) ng/l – nanogram per liter

NOTE

(i) In this report, "$" refers to US dollars

CONTENTS

Page MAPS I. INTRODUCTION 1 II. DESCRIPTION OF THE PROJECT 1 III. DESCRIPTION OF THE ENVIRONMENT 2

A. Physical Environment 2 B. Biological Environment 6 C. Sociocultural Environment 9 D. Mining 10

IV. ALTERNATIVES 11 V. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES 12 A. Air 12 B. Noise 12 C. Hydrology 13 D. Soil 14 E. Water Quality 15 F. Solid Waste 17 G. Flora and Fauna 17 H. Aquatic Ecology 19 I. Sociocultural Environment 20 J. Roads and Transmission Lines 25 K. Induced Impacts 26 L. Cumulative Impacts 27 VI. ECONOMIC ASSESSMENT 29

A. Environmental Costs 29 B. Environmental Benefits 30

VII. ENVIRONMENTAL MANAGEMENT PLAN 30 VIII. PUBLIC CONSULTATION AND INFORMATION DISCLOSURE 36 IX. CONCLUSION 37

I. INTRODUCTION

1. This summary environmental impact assessment (SEIA) has been prepared to summarize the assessment of environmental issues relating to the Song Bung 4 Hydropower Project (HPP), located on the Bung River in Quang Nam Province in Viet Nam. The SEIA was prepared in accordance with the Asian Development Bank’s (ADB’s) environmental assessment guidelines and environment policy. The Project is classified category A in accordance with ADB environmental classification criteria. The total cost of the Project is about $250.8 million. ADB will finance approximately $170 million, or 73% of the total estimated cost, and Electricity of Vietnam (EVN) will provide the remaining $68 million. The Project is anticipated to take 5 years to complete. 2. A preliminary environmental impact assessment (EIA) was prepared for the Project in 2005 by Power Engineering Consulting Company No. 3 (PECC3). This was reviewed and some parts were updated under technical assistance (TA)1. A new EIA was prepared in 2006. This SEIA is based on the updated EIA, which is pending approval by the Ministry of Natural Resources and Environment (MONRE). 3. The Project is located along Bung River, in the upper part of Vu Gia River, which flows to the sea at Da Nang. The catchment area is 1,477 square kilometers (km2) downstream to the Song Bung 4 dam site. One other hydropower project in the same river system, the A Vuong Hydropower Project, is under construction. This project is located in the A Vuong River, a tributary joining Bung River just downstream of the Song Bung 4 dam site. The outlet from A Vuong power station is to Bung River, downstream of the outlet from Song Bung 4 power station. The southern part of the Song Bung 4 Project catchment is within the Song Thanh Nature Reserve (STNR). A small part of the nature reserve (143 hectares [ha]) will be directly affected by the reservoir. The Project is located in the corridor endorsed in the biological conservation corridor initiative by the Greater Mekong Subregion (GMS) Governments’ Summit in 20052

II. DESCRIPTION OF THE PROJECT

4. The proposed Song Bung 4 HPP consists of a dam and a reservoir, and a 156 megawatt (MW) hydropower facility with two 78 MW units. The Project is located within Nam Giang District, in Quang Nam Province, central Viet Nam. The project location is presented in Map 1 and the project components are in Map 2. The dam height will be 110 meters (m) and it will create a reservoir with an area of 15.8 km² at full supply level (FSL). The reservoir regulation will be 27.5 m. The design head is 104.9 m and the Project has mean annual energy potential of 537 million kilowatt-hours (kWh). The Project will reduce the flow in the river from a 5.5 km stretch of the Bung River, and affect the flow further downstream. A freestanding 50 m high intake structure will be constructed about 400 m south of the dam to convey the water to the headrace tunnel. The headrace tunnel will have a total length of 3,046 m and an inner diameter of 6.8 m. At the downstream end of the headrace tunnel, there will be a 75 m high surge tank, and an underground penstock 270.0 m in length and 5.2 m in diameter. The tailrace canal will be 20 m long and divert the water back to Bung River. The powerhouse will be a 68 m high, 58 m long, and 24 m wide surface structure located close to the river. Some 500 m downstream of the powerhouse, there will be a switchyard measuring 70 m by 143 m. The Project will include construction of the following: 1 TA 4625-VIE: Preparing Song Bung 4 Hydropower Project Phase 2, approved on 11 August 2005 in the

amount of $1,575,000. 2 TA 6213–REG: Greater Mekong Subregion Biodiversity Conservation Corridors Initiative, approved on 17

December 2004 in the amount of $400,000.

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(i) areas for temporary workers’ accommodation; (ii) areas for crusher plant, concrete mixing plants, and storage of materials; (iii) areas for offices and other permanent buildings; (iv) three waste rock areas; (v) three borrow pits; (vi) 35 km of 220 kilovolt (kV) transmission line from the power station to

Thanh My substation; (vii) 38 km of 35 kV transmission line from the project area to Thanh My

substation, for electric supply during construction; (viii) about 20 km of access roads and service roads, from Highway 14D to the

dam and the powerhouse, and a number of shorter service roads within the construction area;

(ix) about 20 km of new roads to two resettlement areas; and (x) relocation of approximately 6 km of Highway 14D because of the

establishment of the reservoir, including a 350 m long and 60 m high new bridge over Tru Vinh River, a tributary of Bung River.

5. The Song Bung 4 power station is mainly expected to be operated with daily peaking depending on demand, but also on actual inflow and water stored in the reservoir each day. The future operation pattern of Song Bung 4 power station may vary but it is anticipated that it will operate from 6 am to 10 pm and stop for the rest of the day. Such operation will cause fluctuations in flow and water levels in the river downstream of the outlet from the power station. If no compensation flow is released from the dam, (i) the river section from the dam down to the confluence with A Vuong River will be dry or almost dry for most of the year, and (ii) the flow will be very small from the confluence down to the power station outlet. 6. When the Vu Gia River reaches the floodplain, it has several interconnections with Thu Bon River, located to the south of Vu Gia River. The two rivers form the Vu Gia–Thu Bon basin, with outlets to the sea in Da Nang and Hoi An. The river system is shown in Maps 1 and 3. A number of hydropower projects have been planned in the Vu Gia–Thu Bon river basin (Map 3). A Vuong and Song Tranh 2 hydropower projects are currently under construction. Song Bung 5 and Song Con 2 will have small reservoirs, while the remaining projects include larger reservoirs. Song Bung 5 reservoir is planned to act as a re-regulation reservoir for daily peaking in the upstream projects (A Vuong, Song Bung 2, and Song Bung 4).

III. DESCRIPTION OF THE ENVIRONMENT

A. Physical Environment 7. Topography. Bung River is one of the largest tributaries to Vu Gia River, located in the northwestern part of its watershed. Bung River is about 130 km long, and runs from the border with the Lao People’s Democratic Republic (Lao PDR) to the confluence with Cai River close to Thanh My. After the confluence, the river is called Vu Gia River. In the project area, Bung River is located in a valley with steep valley sides. The Song Bung 4 catchment (1,477 km²) reaches elevations of about 1200 m above sea level (asl) to the south, and about 1800 m asl to the north. The total catchment area of Song Bung, at the confluence with Song Cai, is close to 2,500 km². 8. Air. There is no permanent environmental monitoring station in the project area. However, site specific monitoring was conducted in 2004 and indicated that the air quality in the project area was good during the evaluation period. There are no industrial pollution sources in the project area, and transportation density is not high. Monitoring results are presented in Table 1.

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Table 1: Air Quality in the Project Area (mg/m³)

Sampling Site Dust CO SO2 NO2 Dam Site 0.12 0.00 <0.01 <0.01 Power Station 0.12 0.00 trace 0.00 Reservoir, confluence Pring River 0.10 0.00 trace 0.00 Reservoir, near Pa Dhi village 0.10 0.00 trace 0.00 Standard (TCVN 5937:1995) 0.30 40.00 0.50 0.50 CO = carbon monoxide, mg/m3 = milligram per cubic meter, NO2 = nitrogen dioxide, SO2 = sulphur dioxide, TCVN = Vietnamese Standard. a Ministry of Science, Technology and Environment). 2002. The Collection of 31

Environmental Vietnamese Standards. Compulsory Application (according to the Decision No. 35/2002/QD-BKHCNMT). Hanoi.

Source: Hydropower Project Management Board No. 3 (2005). Feasibility study for Song Bung 4. Electricity of Vietnam.

9. Noise. The Project is located in the valley of Bung River and is surrounded by steep hills. There are some houses in the project area along Highway 14D. Very few permanent roads exist in the project area except for Highway 14D, which goes to the border with Lao PDR. Noise monitoring was conducted in 2004 at some locations in the project area, indicating low background noise levels (Table 2).

Table 2: Noise Measurements in the Project Area (dBA)

Sampling Site Noise Dam Site 36–40 Power Station 40–42 Reservoir, confluence Pring River 40–42 Reservoir, near Pa Dhi village 38–40 Standard (TCVN5937:1995)a 60–65 dBA = A-weighted decibels, TCVN = Vietnamese Standard. a Ministry of Science, Technology and Environment). 2002. The

Collection of 31 Environmental Vietnamese Standards. Compulsory Application (according to the Decision No. 35/2002/QD-BKHCNMT). Hanoi.

Source: Hydropower Project Management Board No. 3 (2005). Feasibility study for Song Bung 4. Electricity of Vietnam.

10. Climate. The project area has two main seasons: a wet season from September to December and a dry season from January to August. There is also usually a minor increase in rainfall during May and June. In the Vu Gia–Thu Bon basin, annual rainfall increases a little with distance from the sea. However, there is a much more distinct gradient from north to south, with the largest rainfall in the south. Mean annual rainfall varies from 2,000 millimeters (mm) near the coast to more than 4,000 mm in the upper parts of Thu Bon catchment. Song Bung 4 has a calculated mean annual rainfall of 2,270 mm. Monthly mean temperatures at Song Bung 4 dam site vary from 19°C in January to 28°C in June. Monthly maximum temperature can reach 32°C and monthly minimum temperature has been recorded at 15°C. Mean annual evaporation from the Song Bung 4 catchment (1,477 km2) has been calculated as 630 mm, and mean annual evaporation from the reservoir has been calculated as 1,567 mm. 11. Hydrology. The runoff in Bung River is uneven throughout the year. About 65% of the annual runoff comes during the wet months, September to December. The average discharge at the dam site is 72 cubic meters per second (m³/s). The mean, maximum, and minimum monthly flows in Bung River are in Table 3. The total annual mean flow in the Vu Gia–Thu Bon river system at the outlet to the sea is 640 m³/s. About 50% each comes from the Vu Gia and Thu Bon parts of the watershed.

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Table 3: Bung River Monthly Flows at Song Bung 4 Dam Site

(m³/s)

Monthly Flows Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Mean 54 38 30 27 42 49 33 42 85 176 183 102 Minimum 11 8 6 5 7 5 7 9 12 28 45 20 Maximum 105 78 58 76 127 185 61 102 223 353 461 256 m3/s = cubic meters per second, SB4 = Song Bung 4 Hydropower Project. Source: Hydrology report of the project preparatory technical assistance.

12. Water level variations will vary from one location to another, depending on the cross section at each location. In the upper reaches of Vu Gia River (including Song Bung River) and Thu Bon River (upstream of the flat delta towards the sea), typical annual water level variations can be 6–8 m because of narrow river valleys and steep riverbanks. Farther down on the delta, the water levels not only depend on the size of the flow and the cross section, but also on the tidal water. Typical annual water level variations can be 2–4 m. 13. During large floods in the river system, a major part of the floodplain towards the sea is inundated. The calculated peak design flood with a recurrence interval of 1,000 years at Song Bung 4 dam site is 12,400 m³/s according to Vietnamese Standards. A 5,000-year flood of 15,500 m³/s was used as check-flood for the spillway design. The stability of the dam under a probable maximum flood event was examined and was found that although the dam will be overtopped with considerable damages, the integrity would be maintained. 14. Suspended sediments have been recorded in Cai River at Thanh My for several years. Sediment samples were also taken in Bung River at the Song Bung 4 dam site for 2 years during the feasibility study. The sediment load in the two rivers appears to be quite similar. Based on the measurements and estimates of bed load volumes, mean annual sediment load in Bung River to the dam site has been estimated as 1.39 million ton/year or 1.15 million m³/year. 15. Geology and Seismology. The project area is located in the lower part of the Song Bung formation of lower-medium triassic. The prevailing geology within the construction area, with competent sandstone and siltstone of the Song Bung formation, is favorable for the construction of a hydropower project. In particular, the geology is suitable for a roller compacted concrete gravity dam, as chosen for the Project. 16. The reservoir and headwork area is located on the eastern part of the Truong fold zone on the northern margin of the Quang Nam structural zone belonging to the northern margin of the Kon Tum uplift. The project area is bounded by four deep faults that could be the source of seismic activity. Earthquake activity in the project area was assessed by the Institute of Geophysics in 20043. Its report stated three conclusions: (i) the dam of the Project are located at a structural zone fairly stable on tectonics and geodynamics, and all tectonic faults passing through the project area manifest low activity; (ii) the geological, tectonic, and geodynamic conditions of the project area are feasible for the construction of a hydropower project; and (iii) the middle zone of the central part of Viet Nam is located in the stable continental region with low earthquake activity. According to historical records since 1666, no earthquakes with a magnitude of four or above on the Richter scale have occurred within a radius of 50 km from the Song Bung 4 dam site. Based on this, the maximum credible earthquake of this area is found to be 5.7 (Richter). The dam structure is designed for a maximum design earthquake of 0.12 g (acceleration of gravity). 3 Hydropower Project Management Board No. 3 (2005). Feasibility study for Song Bung 4. Electricity of

Vietnam.

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17. The rock formations in the reservoir area are the Nui Vu, Song Bung, An Diem, and Ben Giang-Que Son. The oldest formation within the reservoir is the Nui Vu, consisting of quartz schist. The Song Bung formation comprises bluish grey sandstone interbedded with violet-like siltstone. The An Diem formation consists of quartz arkose sandstone and gritstone. The Ben Giang-Que Son formation consists of igneous rock, mainly granodiorite. No limestone formations are present within the reservoir area, and potential leakage from the reservoir is restricted to the abutments and the foundation of the dam where high gradients are present. 18. Soil. The soils in the Song Bung basin comprise district fluvisols (17 km²), ferric acrisols (1,935 km²), humic acrisols (465 km²), rhodic ferrisols (4 km²), and umbric gleysols (6 km²). Acrisols, the dominant soil type, are unstructured soils that erode easily. Well-structured ferrisols, which cover only a small area, are very stable soils that do not erode. Soil maps including the Song Bung 4 HPP area indicate that the project area has only ferric acrisols, implying high vulnerability to erosion. Ferrisols are also generally poor in available phosphorus because of the high chelating factor of these soils and low pH. Phosphorus is a common growth-limiting nutrient for plants in the tropics, pointing to the general poor productive value of soils. 19. Water quality. The impact on water quality, sediment quality, and fish meat quality—from mining and human activities associated with settlements and agriculture—was assessed during 19–26 March 2006 at seven stations on the Bung River and four locations on its tributaries. Temperature varied from 26°C to 28°C. The water was well saturated with oxygen. Ph was slightly alkaline (7.8–8.1). The water was relatively soft with conductivity values of 9–10 millisiemens per meter (mS/m) and alkalinity of 0.9 millimoles per liter (mmol/l). Turbidity was moderate during the sampling days and showed values of 8–35 Formazin turbidity units. Results indicated that the concentration of particulate matter was 10–30 milligram per liter(mg/l), which is normal for the dry season and is associated with low erosion activity. According to previous studies, the concentration can rise to 200 mg/l during rainy weather. During the sampling period, the gold mining barges were operating at full speed but this did not cause a large increase in the turbidity of the river water. The turbidity was much lower than levels known to cause problems for aquatic life, as reported in PECC3’s EIA. 20. The concentration of phosphorus (10–50 microgram per liter [µg/l]) and nitrogen (90–150 µg/l) is low and reflects oligotrophic (nutrient poor) water quality that will not create eutrophication (increase in nutrients) problems in the future reservoir. Phosphorus varied between stations in the same way as turbidity, which indicates that phosphorus adsorbed to particulate matter constitutes the concentration—not discharges from human activity. The concentration of total and other nitrogen fractions are very low, indicating almost pristine natural values and no use of chemical fertilizer in the catchment. The concentrations of the main ions appear natural. There are relatively high concentrations of iron and manganese but these are normal in the type of soils that dominate the catchment. 21. Heavy metals from mining. The highest concentrations of arsenic in Bung River were 0.8–1.2 µg/l. The highest concentration in the tributaries was noted in Ta Vinh (2.3 µg/l). These values are well below the World Health Organization’s limit for dinking water (10 µg/l) and the national standard (50 µg/l). If people were supplied with deep groundwater, arsenic analyses would be necessary. A low concentration of mercury, which is used to extract gold from river sediments, was found in the water at all stations, ranging from natural background levels to 21 nanogram per liter (ng/l). In the Bung River from Pa Dhi Village to Ta Vinh tributary as well as in Ta Vinh itself, the water had enhanced mercury concentrations clearly above natural background levels. These river sections were just downstream of ongoing gold mining activity in the rivers. However, the levels were low

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compared to national and international water quality risk standards for mercury, which range from 700 to 1,000 ng/l. Table 4 summarizes the arsenic and mercury measurements.

Table 4: Arsenic and Mercury from Stations in Bung River and its Tributaries

Arsenic Mercury Arsenic Mercury Bung River (µg/l) (ng/l) Tributaries (µg/l) (ng/l)

Near Pa Rum A village 0.81 2.00 A Kia 2.00 <1.00

Downstream A Kia 1.02 <1.00 Dak Ring 0.32 2.00

Upstream Dak Ring 1.26 2.00 Ta Vinh 2.3.0 21.00

Downstream Dak Ring 1.04 6.00 Vinh 1.38 2.50

Upstream Ta Vinh 0.92 12.00

Confluence Vinh 1.03 5.50 At Bung River Bridge 0.89 5.50

µg/l = microgram per liter, ng/l = nanogram per liter. Source: Water quality and Aquatic Ecology report of the project preparatory technical assistance. 22. Sediment and fish contamination. In the stretch of Bung River where mining was ongoing (Pa Dhi to Ta Vinh), the river sediments had significantly elevated mercury levels at 0.067 microgram per gram (µg/g). Ta Vinh tributary had particularly enhanced values (0.110 µg/g). However, all values were below levels regarded as hazardous to the environment and human use (the Canadian Environmental Quality Guidelines cite 0.486 µg/g as the limit for possible environmental effects). Fish up to 6.5 kilogram (kg) in size were tested for mercury content but all fish had low and unproblematic levels in the meat (0.05–0.18 µg/g). There is no danger in eating fish from Bung River based on their mercury or heavy metal contents. B. Biological Environment 23. Protected area. The Song Bung 4 HPP is adjacent to, and has potential impacts on, STNR, which was established by the People’s Committee of Quang Nam province in 2000. The nature reserve is “proposed” at the national level and is waiting approval by the Ministry of Agriculture and Rural Development (2 August 2006) although it is functioning as a nature reserve with a management board and has been proposed for national park status. Located in Nam Giang and Phuoc Son districts of Quang Nam province (between 15°13’–15° 41’N and 107°21’-107°50’E), the reserve covers 13 communes. It borders Kon Tum province to the south and Lao PDR to the west, and ranges in altitude from 80 to 2,032 m asl. The forests of STNR are critical to the watershed for Song Thanh, Dak Pring, and Nuoc My rivers. These are tributaries of the Cai and Bung rivers, which converge to form Vu Gia River that joins Thu Bon River in the lowlands of Quang Nam province. The core zone of the reserve is 93,249 ha and the buffer zone is 108,398 ha. The buffer zone, except for some areas, has generally poorer vegetation than the core zone, which is rich in species; 95% of the core area is covered by broad-leaved evergreen forest. The core zone has up to 323 faunal (including 106 butterflies) and 329 plant species, according to recent surveys. No comprehensive survey for STNR has been conducted to date. STNR falls in the Central Troung Son Landscape, which is classified a priority conservation area in the region. It also is in the corridor selected for the ADB’s biological conservation corridor initiative4, which

4 Greater Mekong Subregion. Core Environment Program and Biodiversity Conservation Corridors Initiative.

February 2006. Program Technical Paper. ADB (RETA 6213).

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aims to link protected areas and increase forest cover in the region. Forty-one households live within the core zone of the nature reserve and an estimated 4,598 households inhabit the buffer zone. Although the population density in the buffer zone is only 12 people per km², it is one of the poorest areas in Quang Nam province. Local ethnic minorities rely heavily on forestland and resources for their livelihoods. Illegal logging and wildlife trapping—caused by outsiders, not local people—are major threats to biodiversity. 24. Part of the reservoir of Song Bung 4 HPP will inundate 142.6 ha of STNR up to the elevation of 222.5 m asl The inundated area lies in the core zone. At present, STNR is exposed to entry because of the 14D Highway road bridge, from where tracks lead along Ta Vinh River into the reserve. Vegetation in the inundated area largely comprises of scrubs with scattered trees with a cover of 10–20% (26% of the inundated area) followed by woodlands with a tree cover from 20 to 50% (22% of the inundated area). The inundated area has been subject to logging and some shifting agriculture, and is used for non timber forest product (NTFP) collection and illegal hunting. Surveys conducted in STNR’s inundated area showed 52 faunal species, none of which are threatened and all of which are widely distributed. Based on current knowledge of the area, no known migration routes will be blocked by the inundation. In the forested watershed area, particularly at higher elevations adjacent to the inundated area, 116 faunal species were recorded. Vegetation surveys in STNR’s inundated area showed 96 species, of which one (Erythrophleum fordii [Ironwood]) is classified as threatened. All plant species recorded are widely distributed. 25. Flora species, cover, and forest. Humans have influenced much of the land area of Song Bung 4 HPP, particularly by shifting cultivation over several generations and more recently by illegal logging. The project areas now have species generally associated with secondary and pioneer communities, poor vegetation cover, and little subsistence and economic value (timber and non timber forest products). In the project areas, there is 1.8% area has a forest cover of 75% , which can be said to be closest to primary forest. This type of vegetation covers only 4.6% of the inundated area of STNR. Some 21% of the total project area is covered by disturbed primary and secondary forest vegetation. Secondary vegetation types, which have regenerated on abandoned shifting cultivation areas, are dominant in the project area, covering up to 67% of the total area of Song Bung 4 HPP. The reservoir, which makes up 40% of the total project area, has about 73% covered by secondary scrubs and grasslands, bare lands, or water surface. 26. In all, 189 higher vascular plant species of 163 general and 75 families were recorded in the reservoir, the majority of which are angiosperms (169 species). Three threatened species were recorded (Erythrophleum fordii, Pavieasia anamensis, and Scaphium macropodium). These species have wide distributions and are common in the region. No endemic species were recorded in any part of the project area. Forty-one tree species were recorded in other parts of the project area, of which 22 species are common. Commonly occurring species are Erythrophleum fordii (timber classified as Group 2 in Viet Nam, e.g. Ironwood); Pavieasia anamensis, Dimocarpus longan, and Aglaia annamensis (Group 5), Dracontomelum spp. (Group 6); Vatica odorata (Group 7); and Bombax malabarica (Group 8). As reported in the Song Bung 4 EIA, the quality of existing tree species in the project areas is poor because of the illegal logging that has gone on for some time. Rattan, the most important NTFP in the region (fetching good prices), was almost totally harvested in the project areas by the end of the last century. Today, rattan exists in higher elevations while bamboo abounds in many areas. Other NTFPs, such as Scaphium macropodium (Uoi in Vietnamese), have little monetary value but are important to local communities. 27. Fauna. Project area surveys recorded 89 species (81 species in the reservoir area, 35 species in the construction areas, and 12 species in the resettlement areas). In forested watershed areas around the project area, 140 species were recorded. Five threatened

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species were recorded directly in the project areas: Macaca mulatta (Rhesus macaque), Physignathus cocincinus (Asian water dragon), Elaphe radiate (Radiated rat snake), Ptyas korros (Indochinese rat snake), and Palea steindachneri (wattle-necked softshell turtle). All these species have a wide distribution and are common targets for hunting. Within STNR, in the inundated area and surrounding watershed forest, a total of 139 species were recorded, including 22 species of mammals, 81 species of birds, 24 species of reptiles, and 12 species of amphibians. Among these, 52 species were recorded in the reservoir area and 116 species were recorded in the surrounding watershed forest. Illegal hunting and trapping are common practices in the watershed. The low number of species recorded may be due to the generally poor habitats in many of the Song Bung 4 HPP areas. 28. Aquatic ecology. Prior to this study, no biological studies had been done in Bung River except for a few samplings conducted for the National Hydropower Plan (NHP). Knowledge of aquatic life in the river is limited and information on fish species is inadequate. A survey of aquatic ecology5 was conducted in Vu Gia and Bung rivers as part of this project preparatory technical assistance (PPTA) in February 2005. The survey included sampling all main biological groups: phytoplankton, periphyton, zooplankton, bottom dwelling animals, and fish. Survey methods comprised direct sampling at 17 stations, observations, photo albums for confirmation of fish identities, and interviews with fishermen and fish-consuming local people. The aquatic survey of this study identified 78 phytoplankton species belonging to 26 families, 45 algal species and 4 moss species in the periphyton community, 40 species of zooplankton belonging to 15 families, and 48 zoo-benthic taxa. Among them, some species of shrimp are not yet identified and may be new to science. The survey identified 107 fish species belonging to 31 families and 9 orders occurring in the Vu Gia–Bung river system. Therefore, the exact number of aquatic species of Vu Gia–Thu Bon river system is certain to be larger than what has been revealed through this rapid study. Four species are listed in the Vietnamese Red List Book6. 29. Fish migrations. The Vu Gia–Thu Bon river system is a continuous water body currently without migration barriers. In such a system, the fish community will always be comprised of many migratory populations. The migrations are performed for feeding and spawning. There are two main fish migration periods in Bung River: the small rainy season in May–June and the main rainy season in September–November. The hydrological rhythm of the river triggers the migrations. The migratory pattern of Bung River fishes has not been studied and is only partly known, so more studies are needed (paras 101–105). About 15–20 of the main fish species used for human consumption are migratory. For example, the highly priced Anguilla marmorata inhabits the whole river. This species migrates down the river and spawns in the deep sea. The Clupanodon thrissa lives in the sea and river mouth area but migrates up the river for spawning. Some species migrate into flooded forests, wetlands, and rice fields for spawning. Other species swim far upstream and spawn floating eggs that develop while drifting downstream. The migratory species are particularly susceptible to hydropower development because (i) the barriers that the dams create can limit migration, and (ii) the changed hydrology often triggers migrations at the wrong time. 30. Fishing. People living along the river fish in it almost daily. Most fish are used for their own consumption but some are sold, particularly the highly priced Anguilla marmorata which is sold alive fetching up to D250,000 per kg. Bung River has many deep pools, which makes it possible to have large fish species in the river in the low flow season. Bung River is known for its large fishes, and fishermen from far downstream Vu Gia River go to Bung River for fishing, often up to the junction with A Vuong River. The fishery yield has been reduced over the past 10–15 years by up to 50% (based on interviews with local

5 Hydrology report of the project preparatory technical assistance. 6 Red Data Book of Vietnam. 2000. Ministry of Science, Technology and Environment. Science and Technique

Publishing House.

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communities). High fishing pressure is the most likely explanation, as well as widespread use of highly efficient mono-filamentous gillnets and electric fishing gear. There have been complaints that workers from A Vuong Hydropower Project resorted to fishing with explosives, sanctions against which will be enforced in Song Bung 4 HPP. Local people also catch crabs, shrimps, mussels, snails, frogs, and turtles from the river for food. Some of these products are also sold in the Thanh My market. C. Sociocultural Environment 31. Administrative location of the Project. Song Bung 4 HPP project area is located in the Nam Giang district of Quang Nam province. The total land area of the district is 1,836 km2, divided administratively into eight rural communes with 60 villages and the district town of Thanh My. The district is sparsely populated with a population density of less than 11 people/km2. 32. Song Bung 4 HPP construction will affect three communes of Nam Giang district: Ta Bhing, Cha Val, and Zuoih. The dam site and construction areas are located in Ta Bhing, and the reservoir will cover parts of all three communes. Inhabitants of the four villages of Thon 2, Pa Dhi, Pa Rum A, and Pa Rum B in Zuoih commune will be directly affected by the reservoir inundation. Resettlement areas are all located in Zuoih Commune. The transmission line will be located in Ta Bhing and Ca Dy communes and in Thanh My town, and the access road to the construction area is in Ta Bhing commune. 33. Population and ethnicity. The total population of Nam Giang district is 20,650. Ethnic minorities account for 79%, of which 56% are Co Tu, 19% Gie Trieng, and the rest belong to other ethnic minority groups. The population in the three reservoir-affected communes is 1,417 persons in Zuoih, 2,488 in Ta Bhing, and 2,082 in Cha Val. Co Tu ethnic minorities dominate the population in all these communes, comprising 97% of the inhabitants in Zuoih, 88% in Ta Bhing, and 92% in Cha Val. 34. Basic infrastructure. Infrastructure is poorly developed in Nam Giang District. Many villages are remote and some are accessible only by walking tracks. Good standard year-round vehicle accessible roads are limited to highways 14 and 14D. Electricity and safe water supply and sanitation are lacking in many rural areas. Access routes have been developed for village access as well as for forestry and mine dredgers. However, these are impassable in the wet season and are easily eroded. Motorcycle access is possible in some cases but risky. Some villages have developed pico-hydro for charging batteries, indicating that there is a demand for electricity. 35. Education and health services. Education for grades 1–9 is available in all communes but many villages are far from the commune schools. Grade 1–2 education is available in villages. Upper secondary school education is only available in the district town, and is beyond the reach of most of the poor village youth. The general education level of the adult population is low and illiteracy is not common. Every commune has a health care center but these can only offer some basic preventive medical services and medicines. Doctors are available only in the district town. The general health status is poor, and the rate of undernourishment in children is high—34% in the district but as high as 46% in an extremely poor commune like Zuoih. 36. Socioeconomic conditions. Nam Giang district is rural and the economy of the majority of households is based on subsistence activities in agriculture, forestry, and fishery. In the mountainous district, upland cultivation dominates and the area for lowland cultivation is limited. Cultivation is done manually and mostly without fertilizers. Small-scale forest utilization, such as collecting NTFPs and hunting, is important for household economy. Logging and gold mining takes place illegally on a larger scale—mostly not by local

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people—and the economic revenue is difficult to estimate. Most local people keep animals such as pigs, chicken, and cows, which create some income. Fishing in rivers, streams, and fishponds is common for consumption and selling. The productivity of agriculture and livestock breeding is low, and extension services are very limited. Trade is done almost exclusively by the Kinh people. 37. Poverty. Nam Giang District is one of the high poverty areas in central Viet Nam. The total district poverty rate is more than 52%, and the commune poverty rates are 72% in Zuoih, 50% in Ta Bhing, and 60% in Cha Val, indicating the percentage of population living below the national poverty line7. 38. Co Tu ethnic minority culture. Most of the rural population is from ethnic minorities. Co Tu is the dominant group, with its own language and culture. According to the Co Tu worldview, nature is inhabited by spirits that have to be respected by people. Land availability and spirits have defined the locations and past removals of Co Tu villages in the project areas. The village is a unit governed by the traditional village elder and the council of elders . Marriage and male lineage are the cornerstones of ownership and kinship rules. The village is built around the communal house (Guol), which is also the spiritual center. Graveyards are located at a distance from the village, usually in the western direction. D. Mining 39. There are six types of mineral resources in the catchment of Song Bung 4 HPP: gold (in river sediments and the hard rock), copper, pyrite, iron, uranium, and mineral water. A total of 36 different localities have been identified within the catchment. Table 5 shows the mineral resource status for the different localities.

Table 5: Mineral Resources in the Song Bung 4 Catchment

Mineral Resource Number of Localities Mining Status

Hard rock gold 3 Under exploitation: 2 Unexploited: 1

Sediment gold 23 Exploited: 5

Under exploitation: 10 Unexploited: 7

Copper 2 Unexploited Pyrite 1 Unexploited Iron 3 Unexploited Uranium 1 Unexploited Mineral water 3 Unexploited

Source: Technical report on mining of the project preparatory technical assistance.

40. There are no permits for any kind of mining activity, including gold extraction, in the catchment (1,477 km2). All ongoing gold mining activity is illegal but controls on illegal mining activity are lacking. Some of the gold mining activity takes place far away from roads and villages, which makes it difficult to control. Several floating dredging machines are operating in Bung River, near villages in the upstream part of the planned reservoir. In two hard rock mines, located along the upper part of Ta Vinh River south of the reservoir, the number of workers varies from 120 in the dry period to 200 in the wet period. Eleven floating dredging machines in Bung River, within the reservoir area, have 65 workers. Another 80 people work on 14 floating dredging machines in the tributary, A Kia River, located upstream from the reservoir. Six people work on one dredge located in Ta Vinh River. Some hand 7 Social report of the project preparatory technical assistance.

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panning also takes place in the dry season, mainly by local villagers, at different locations along the rivers. 41. In hard rock mining, the gold containing rock is taken from the gold ore, usually by blasting. The rock is then crushed and the resulting fine sand is mixed with water. The separation of gold is done using a combination of gravity washing and dissolution with cyanide. The gold in the resulting water-cyanide solution is then precipitated on metal shavings; zinc shavings or zinc powder are most commonly used. Heating separates the metals in the precipitate, as gold and zinc have different melting points. Floating dredging machines dig into the sediments in the riverbank. Gold and finer sand are separated from the riverbank material through a stepwise process. At the end, the remaining material is mixed with mercury and molded in a cloth. The mercury reacts with the gold, forming amalgam. The amalgam is then heated and the mercury evaporates, leaving pure gold and some silver. This last heating process is usually not carried out in the field in the catchment (1,477 km2)of Song Bung 4. 42. During construction of Song Bung 4 dam, and before filling the reservoir, it is likely that special permits will be issued to exploit the gold resources within the reservoir. Such special permits have been given in connection with the construction of the Son La HPP. This will probably increase gold mining activity in Bung River but may also lead to an increase in activity at other locations in the tributaries upstream from the reservoir.

IV. ALTERNATIVES

43. Without the Project. Under the “without project” scenario, there will be no possibility of using the reservoir to secure water for irrigation in dry periods or to mitigate floods in the river system. Energy demand in Viet Nam has grown in recent years at a rate of 13–15% per annum and will continue to grow at a steady high to moderate pace in the years to come, according to the latest demand forecast. It is estimated to grow to nearly 260 TWh in 2020. The “without project” alternative would not be in line with economic development planning and might hinder poverty alleviation efforts8. 44. Technical alternatives. In a master plan for Vu Gia–Thu Bon River Basin carried out in 2002, two cascade options were studied for Song Bung 4 HPP—with and without a diversion to a nearby catchment. In phase I of National Hydropower Plan (NHP) (stage 2 study), the alternative without diversion was recommended because it had less social impacts, among other factors. Several alternative dam sites were investigated in the pre-feasibility study and feasibility study (2004–2005). Three dam sites were found viable, located very close to each other with no differences in social impacts or impacts in the reservoir or on downstream river reach. 45. Alternative locations have been considered for the power station in this Project, both at the foot of the dam and further downstream. Both alternatives were found less economically viable compared to the proposed layout9. With the power station located at the foot of the dam, environmental impacts would be reduced since there would be no affected river reach with permanently reduced flow. With the power station further downstream, the river reach affected would be much longer. 46. A minimum operation level (MOL) in the reservoir at 220 m asl has been considered as an alternative to the proposed MOL at 195 m asl. A higher MOL, with annual water level fluctuations in the reservoir of a maximum of 2.5 m, would give better conditions for natural fish production in the reservoir. This alternative would include a very small active reservoir

8 Main report of the project preparation technical assistance. 9 Main report of the project preparation technical assistance.

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volume, and the power plant would almost be a run-of-river plant. Downstream of the power station, the impacts from peaking would be equal to the proposed alternative but with less benefits for downstream water users because of the small reservoir volume available. From a total technical and economical evaluation, the alternative with MOL at 220 m asl was rejected. 47. Two alternatives for releasing compensation flow have been considered, with release from the dam or the power station. The main difference between the two alternatives is that a release from the dam would cause a compensation flow for all of the affected river section, while a release from the power station would leave the river reach between the dam and the power station outlet very dry for large periods of the year. With a release from the power station, the total annual volume of water to be released would be less than with a release from the dam since there would be no need for additional releases when the power station was operating.. . There is however insufficient baseline data and analysis of aquatic and riparian ecosystems on which to take an informed decision on the benefits and costs of a compensation flow. Therefore a precautionary approach is recommended that allows more time for study, as part of the technical design process, to determine the environmental and social benefits of a compensation flow release. 48. Song Bung 4 HPP has been compared with alternative power generation sources including coal and other thermal fire power generation, energy conservation, renewable energy, and import from neighboring countries. According to Master Plan VI10, the only realistic alternative to hydropower is a coal-fired plant. In the Master Plan VI projections of the electricity demand up to 2025, and the least cost system expansion plan up to 2025 to meet the projected demand has been prepared. Master Plan VI confirms that Song Bung 4 HPP is part of the least cost expansion plan for the Viet Nam’s power system to be commissioned during 2011–2015. This was also confirmed in the NHP study stage 2. Environmental externalities such as greenhouse gases emission including methane and carbon dioxides will reduce after a few years of reservoir inundation, and as compared to the other alternatives of power generation, Song Bung 4 HPP’s environmental impacts will be low as detailed in the section on global impacts

V. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES

A. Air 49. The main impact on air quality during construction will be increased dust levels from construction machinery, tunnel construction, rock blasting, foundation excavation, cement mixing, and road construction. To mitigate dust problems from traffic in the project area, water will be sprayed on access roads and construction sites. The main access road from Highway 14D via the dam to the power station will be paved. Other sections of the service roads in the vicinity of permanent houses will also, where possible, be paved. All trucks with construction material will be covered. During the operational phase, there will be no immediate sources of air pollution from the hydropower plant itself. Traffic on the new roads to the power plant and the resettlement areas will result in a general increase in air pollution along the roads, since these are located mostly in areas currently with no traffic or very little traffic. However, the level of increase in air pollutants will be quite insignificant, and will be monitored closely. B. Noise 50. During construction, noise and vibration will be generated from vehicular movements, sand and aggregate processing, concrete mixing, excavation machinery, 10 Master Plan VI. 2006. Electricity of Vietnam.

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construction noise, and blasting. Noise levels in the construction area from machinery and vehicles are estimated to be from 80 to 95 A-weighted decibels (dBA) at a distance of 15 m, which is higher than the Vietnamese standards of 60–65 dBA (TCVN 5937:1995).11 The main potential impact of high noise levels and vibration will be on construction workers since there are no villages located near the construction sites. Mitigation measures for noise impacts on construction workers will include standard occupational health and safety practices such as ear protection and enforcement of exposure duration restrictions. Blasting activity will be limited or restricted during nighttime if noise levels are unacceptable for people living in the vicinity. During operation, noise will mainly be generated in the power station. Noise reduction measures will be taken, where required, to reduce noise levels. Mitigation measures for noise impacts on workers will include standard occupational health and safety practices such as ear protection. C. Hydrology 51. The FSL of the reservoir will be at 222.5 m asl, which will create a lake with an area of 15.8 km2 and store a total volume of water of 493 million m3. The drawdown of the reservoir to the MOL at 195 m asl will be 27.5 m. At the MOL, the reservoir area will be 7.8 km2 and the volume of dead storage will be 173 million m3. The volume of water to be used for electricity generation, between FSL and MOL, will be 320 million m3. This is about 14% of the mean annual inflow volume to the reservoir. Mean annual sediment inflow to the reservoir has been estimated at 1.15 million m3. With a trap efficiency of 0.95%, found in the NHP 12 , the mean annual volume of sediments to be trapped in the reservoir will be 1.09 million m³. Based on this number, it will theoretically take more than 150 years to fill up the dead storage of the reservoir. However, the distribution of sediment deposition in the reservoir will not be completely even, so part of the live storage in the upper reaches of the reservoir will be filled up before all of the dead storage towards the dam is filled up. 52. The reservoir will be operated for seasonal regulation of the inflow, generally so that it will be filled up to the FSL during the wet season (September to December) and be drawn down to the MOL at the end of the dry season (August). Table 6 shows the typical variation of reservoir water levels during the year. Maximum drawdown in the reservoir will be 0.7 m in one day and 0.5 m per day for a 5 day-period.

Table 6: Typical Monthly Water Levels in the Reservoir (m asl)

Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Water Level 221.0 219.0 216.0 213.0 209.0 205.0 200.0 195.0 205.0 213.0 219.0 222.5

asl = above sea level, m = meter. Source: Hydrology report of the project preparatory technical assistance

53. The river stretch between the dam site and the outlet from the power plant is about 5.5 km long. Without any release of compensation flow from the dam, the flow will normally be almost equal to zero on the first 3.5 km downstream of the dam during the drier part of the year. Bung River has its confluence with A Vuong River at that point. The A Vuong HPP is under construction further upstream in that river, and there will be no release of compensation flow from that dam. The mean annual residual flow in Bung River before the outlet from the Song Bung 4 power plant—including flow in both dry and wet months of the year—will be about 4 cubic meter per second (m3/s), of which almost all will come from A Vuong River. In addition, during the wet period of the year (September–December) , most 11 Ministry of Science, Technology and Environment). 2002. The Collection of 31 Environmental Vietnamese

Standards. Compulsory Application (according to the Decision No. 35/2002/QD-BKHCNMT). Hanoi. 12 National Hydropower Plan. 2005. Electricity of Vietnam.

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years will experience flood losses from the reservoirs on average equal to nearly 20% of the total annual inflow volume to the reservoirs 54. In general, the flow downstream from the power plant will increase in the dry months of the year. Correspondingly, the flow downstream will decrease during the wet months. During a flood situation, the operation of Song Bung 4 and A Vuong reservoirs will lead to a reduction of the flood flow downstream of the dam. However, during very large floods, such flood control effects will hardly be noticeable. Table 7 gives examples of typical flow changes in low and high flow situations for Vu Gia River, where it enters the floodplain.

Table 7: Typical Low and High Flows in Downstream Part of Vu Gia River (m3/s)

Scenario Typical

Low Flow Typical

High Flow Natural Conditions 54 627 With A Vuong HPP 65 614 With A Vuong HPP and Song Bung 4 HPP 90 584 HPP = hydropower project, m3/s = cubic meter per second.

Source: Hydrological Study for this project preparatory technical assistance. 55. Peaking operation will cause daily fluctuations in flow and water levels in the river downstream of the power station outlet. Especially in the dry season, the power plant will not be in operation during several hours of the day, leaving the immediate downstream stretches of the river nearly dry, unless there are compensation releases. The magnitude of water level fluctuations will vary along the river, depending on the cross sections at different locations. Bung River is dominated by quite steep riverbanks, so the variations in water levels caused by peaking will be almost the same, regardless of the initial water level in the river. Just downstream of the power station outlet, the water level will change quite suddenly after a start or stop in the power station. Further downstream from the power plant, the changes in water levels will not be as rapid. Maximum water level fluctuations in Bung River just downstream of the outlet from the power plant are estimated to be 1.5 m, taking 2 hours to drop to the minimum level after a stop in the power station. In Vu Gia River after the confluence with Cai River, the largest tributary, the maximum water level fluctuations are estimated to be 0.6 m with peaking in Song Bung 4, only increasing to 1.0 m with peaking in both Song Bung 4 and A Vuong power stations. Further downstream in Vu Gia River, at the confluence with Thu Bon River, the maximum water level fluctuations will be about 0.20 m with peaking operation in both power stations. In Vu Gia River, the time from maximum to minimum water level will be about 6 hours. In order to soften the rapid water level fluctuations, especially on the first kilometers downstream of the outlet, it is recommended to do the start and stop of the power station stepwise. The start and stop procedure will be preceded by warning sirens. This warning system will cover at least the river downstream from the outlet of the power station to the confluence with Cai River. In case of emergency, such as a sudden opening of the spillway gates, warnings will be given with sirens along the Bung River from the dam site to at least the confluence with Cai River, with close coordination between the Quang Nam Provincial People’s Committee and the IA. D. Soil 56. Construction period. Soil will be impacted because of (i) loss of topsoil, (ii) failure to refill and revegetate borrow areas and temporarily used land, (iii) erosion, (iv) soil contamination by products used for the Project, and (v) failure to reutilize displaced earth during the construction period. As much of the land cover of the Project has grass and shrub vegetation and is on slopes, it is prone to erosion and soil slides. All topsoil will be scraped off while preparing project areas (including during scaling and planning of surfaces) and

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stored for reuse in rehabilitating temporary acquired land and spoil areas. Sand will be acquired from the riverbank in Cai River near Thanh My where there is no topsoil. The soil and rock pits (quarry) will be filled and planted with trees, shrubs, and grasses. Disposal areas will be well marked and monitored so that procedures for disposal of different chemical agents and waste materials are followed to minimize soil contamination. In all cases, erosion can be minimized by regular rehabilitation of areas not in use for project activities during construction. Rehabilitation will include (i) regrading and immediate revegetation (using fast-growing species and different functional groups of plants for keeping soil in place) of slopes to minimize erosion, (ii) use of topsoil removed and stockpiled from project areas, (iii) installation of sediment runoff control devices, and (iv) erosion and revegetation success monitoring. Soil erosion and siltation will be minimized by preventive measures and engineered storm water diversion on a case-by-case basis. All project areas will be “greened” by planting trees, shrubs, and grasses to reduce erosion during the construction period. Road construction will potentially lead to erosion; this will be minimized by suitable road engineering techniques and road edge buffer replanting. Special guidelines for road construction and maintenance have been prepared for this Project. All excavated rock and aggregate will be used in construction where possible. Spoil will be deposited in an area with minimum landslide potential; multi-layered and covered with soil; and planted with trees, shrubs, and grasses. 57. Operational period. During operation, soil could be impacted by spillage of hazardous wastes and materials, including hydrocarbons; and localized scour at the water outlet. Soil contamination will be prevented by installing (i) oil separators at wash down and refueling areas, and (ii) secondary containment at fuel storage sites. All hazardous wastes and hazardous materials will be stored in properly designed storage facilities. E. Water Quality 1. Construction Period 58. During the construction period, the water flow will be about the same as before. As there will be no damming yet and the river will still be passable for fish, there will be almost no upstream impacts in this period. However, the following activities may negatively affect water quality and aquatic life: (i) erosion and runoff caused by construction activities, including forest cleared areas and accidental water releases; (ii) sedimentation in the slow-flowing river stretches, resulting in the shallowing of deep pools; (iii) siltation of periphyton-producing substrates and reduced light penetration of the water column from increased turbidity, possibly reducing primary production; (iv) sanitary effluents from the construction camps; (v) oil and chemical spills; (vi) leaching of ammonia and nitrogen from the tunnel blasting and spoil rock deposits; and (vii) dry-ups when the reservoir is being filled. 59. During the construction phase, erosion abatement measures as detailed in the soil section will be taken at all construction sites. Roadsides and other project areas with denuded soils will be, among other measures, sowed with appropriate vegetation, strengthened with appropriate concrete/stone settings, and paved to the extent possible. Measures to avoid oil and chemical spills will be taken to reduce water and soil contamination, which can easily move into the river and stress aquatic life and contaminate water. The machine parking area, workshop area, and fuel and oil filling area should be restricted to one paved area where possible and equipped with a controllable drainage system so that all diffuse spills and accidental spills may be collected at all times. Toilet water should not be allowed to be discharged into the river, as it could cause health hazards for those living downstream. Black water (toilet water) will be collected and treated with the necessary infiltration capacity. Gray water (washing and kitchen water) will be filtered at the site before discharging it into the river. Tunnel blasting uses a large amount of ammonium-nitrate. If concrete (particularly spray concrete) is used for tunnel tightening, the runoff

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becomes very alkaline and reacts with ammonium to create free ammonia, which is very toxic for fish and other aquatic animals. Therefore, runoff from tunnels and spoil rock deposits can cause fish kills during periods with low flow. Runoff from the tunnel will be monitored and passed through a sedimentation basin where neutralization could be performed if extremely high pH values are observed. If the tunnel is made by full profile drilling, the runoff does not contain toxic chemical.

2. Operational Period

60. Waste water (black and grey) from both project and resettlement areas will be treated appropriately as during the construction period. In the first years after damming, a lot of erosion will take place in the reservoir, and the silt and clay fraction of this erosion material will also impact the river downstream. Both impacts will disappear after 3–5 years. Erosion from the land will also increase in general if there is increased human activity in the area, particularly related to forests and roads. The dam may have to discharge large amounts of water through the spillway gates for short periods. Such events can often result in large-scale erosion in the downstream river and should be avoided and if possible, by controlling the discharge as specified in the dam operating manual. 61. The formation of the reservoir will create low oxygen sediments in the deep waters. This will create conditions for methylation of the metallic mercury that is deposited in the sediments from gold mining activities. The methyl mercury is much more bio-accumulative than the metallic mercury currently present. However, surveys show that mercury contamination of the sediments was low (0.01–0.11 µg/g), so it is not anticipated that the mercury contamination will become significant in the future. 62. In the downstream 5 km stretch between the dam and the outlet from the power plant, the flow will be low and the water will be susceptible to pollution discharges. The reservoir will retain coliform bacteria from the upstream, and sediment particles after the first initial erosion period is over. The water coming out of the dam will thus be clearer than the water entering the reservoir. In the first 2–3 years after damming, the water coming out of the reservoir will have low oxygen content because of decomposition of organic material from the inundated terrestrial catchment. This water will also contain high levels of bio-available nutrients for 2–3 years, which will cause some eutrophication impacts downstream. These effects will only last for 2–5 years, as the reservoir will become oligotrophic in a short period. The temperature downstream of the power plant will be 2–3 0C lower than it was before, but it will reach the average air temperature relatively quickly on the way downstream, so this is not considered a problem. 63. Daily water level fluctuations from peak operation in the power station will cause increased probability of erosion in riverbanks downstream of the outlet. It is recommended that the daily start and stop be taken stepwise to reduce this impact. 64. Global impacts. Eutrophication will not be a problem in Song Bung 4 reservoir. Low soil fertility in the catchment, low population, and low agricultural activities will result in an oligotrophic reservoir. The reservoir will be more productive for fish during the first 3–5 years because nutrients will be released from the inundated terrestrial catchment. In this period, the sediment surface in the deepest waters will be anaerobic and greenhouse gases such as methane and carbon dioxide (CO2) will be produced, as well as some other gases of minor importance. Methane has an impact on climate 21–23 times stronger than CO2. The gas escapes through the turbines and the spillway, and it can bubble off through the surface (tiny bubbles) when the water level of the reservoir is lowered (bubbles released by pressure fall). Tropical reservoirs can create large amounts of greenhouse gases but very little information exists on production of greenhouse gases in reservoirs in Viet Nam and southeast Asia. There are large variations in emissions from tropical reservoirs. Based on a

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rough estimate, and the fact that the Song Bung 4 reservoir will become oligotrophic so the emission of methane will be reduced after a few years, the reservoir will emit CO2 equivalents in the low end of the range from 108,000 to 1,620,000 tons or at the lower end of the range of 25–276% of the greenhouse gas emissions from an oil-fired thermal power plant producing the same amount of electricity. Only monitoring can provide a more precise estimate. Much of the greenhouse gases release derives from anaerobic decomposition of organic matter from inundated areas, so clearance of the reservoir area for forest, trees, and bushes—prior to filling the dam—is a recommended mitigation measure. F. Solid Waste 65. Solid waste generated during construction will consist of (i) domestic waste and construction waste from work camps, and (ii) hazardous waste from work sites. Disposal of domestic waste and construction waste will occur regularly at approved disposal sites. Hazardous waste will be collected and stored on-site in approved facilities according to relevant standards. Hazardous waste will then be removed from the site to approved hazardous waste disposal facilities. During the operational phase, domestic and industrial wastes from the hydropower plant and accommodation facilities, and receiving areas of the resettlement will be brought to approved disposal sites. Storage, collection, and disposal of hazardous wastes will be conducted in conformity with relevant governmental regulations. 66. Hazardous materials will be used during both construction and operation of the Project. Potential impacts to the environment are from accidental spillages affecting soil, groundwater, and adjacent water bodies. Mitigation measures to prevent spillage will include installing appropriate hazardous materials storage facilities. G. Flora and Fauna 1. Construction Period 67. Flora and terrestrial fauna. Potential impacts on flora and fauna include (i) vegetation loss during construction activities; (ii) potential increase in illegal logging, fuelwood, NTFP collection, and illegal hunting (also in STNR); and (iii) localized disturbance to wildlife (e.g., macaque and turtle populations). Removal of vegetation is inevitable at the construction sites but damage can be minimized by careful removal of trees with as little site disturbance as possible. Greening of all projects sites is recommended by planting native fast-growing species of trees and shrubs in open areas and housing areas of the Project to (i) minimize erosion, especially when temporary infrastructure is torn down; and (ii) facilitate revegetation of temporarily occupied sites after completion of construction activities. In the long term, such activity may also help create a positive greening attitude among migrant and nonmigrant workers. All plant and animal species and vegetation communities are widely distributed, and the risk of loss of species is minimal. Surveys in the project sites did not reveal any special habitats for protected animals. Based on current knowledge of the area, no known migration routes will be blocked by the inundation. However, construction activity will disturb animals that may come close to project sites from nearby forested areas. Transmission line corridors can impact animals. Precautions to reduce illegal hunting and logging will be taken during construction and vegetation clearing, and monitoring will be conducted. 68. There is a good probability that fuelwood collection and wildlife hunting will increase with the temporary increase in workers during the construction period. This is already happening in Zuoih commune, which is already receiving camp followers. The most vulnerable areas are those at higher elevations (slopes and ridges of Ta La Cu mountain on the southern bank of Bung River) where there is more firewood and wildlife, southward towards STNR, and northwest and east of the reservoir where there are good quality forests.

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Mitigation measures will include (i) provision by the construction contractors of heating and cooking facilities that do not use wood, such as gas and/or compressed rice husks; (ii) provision of environmental training and understanding of regulations through the environmental protection and capacity building plan as part of the environmental management plan (EMP), and working closely in conjunction with STNR management board; (iii) support through the environmental protection and capacity building plan for better enforcement of wildlife hunting and trading laws already in place; (iv) an increase in the protection of the forest areas by guards and the imposing of fines; and (v) enhancing community awareness through a environmental awareness campaign, securing of land ownership and user rights. Setting up a community-based forest management (CBFM) plan in Zuoih commune, and Bo Di (Cha Val commune) and Pa Toi (Ta Bhing commune) villages as a conservation off-set (COS) may help foster a more environment-friendly attitude and understanding of managing forests among workers during construction period. The planting and enrichment of forest, in association with STNR in a rehabilitation plan, as a COS under Song Bung 4 HPP will help create a buffer of forest that will be protected and help reduce pressure on forest resources. Both COS activities will enhance watershed maintenance. 69. Conservation off-set. A CBFM plan has been prepared as a COS instead of ADB’s forest policy of “tree for tree” monetary compensation when a project contributes to depletion of forest. The COS plan enhances forest quality and soil conservation of the watershed by community management of protection forests, establishment of sustainable harvest regimes for non timber forest products, and practice agro-forestry (including agriculture) through local community participation. Using participatory approaches, a land use and allocation plan will be proposed based on community and commune priorities, reflecting the maintenance of ancestral domain and ethnic representation as well as the need for watershed protection along the edges of the reservoir. The official establishment of land allocation within the COS will secure ownership, user rights and role of local people in forest management. Based on the land allocation, different forest management options will be explored and decided upon. The COS designed here, instead of “tree for tree” compensation, is seen as a more significant contribution to increasing ecosystem functioning, landscape continuity and watershed maintenance, and enhancing livelihoods. The aim will be that communities will be able to receive increased cash benefits and sustainable amounts of NTFPs through forest land allocation, securing of user rights, establishment of sustainable forest management practices, and investments in community forestry and the sustainable use of the watershed. 70. The Song Bung 4 HPP impacts STNR by inundating 143 ha. The inundated area has been subject to logging, and is used for NTFP collection and illegal hunting. Surveys conducted in the inundated area of STNR showed 52 faunal species, none of which are threatened and all of which have a wide distribution. Based on the current knowledge of the area, no known migration routes will be blocked by the inundation. In the forested watershed area, particularly at higher elevations adjacent to the inundated area, 116 faunal species were recorded. Vegetation surveys in the inundated area of STNR showed 96 species, of which one (Erythrophleum fordii—Ironwood) is classified as threatened. All plant species recorded have a wide distribution. Rehabilitation of areas by planting and enriching with forest species will be done as a COS. Implementation of the rehabilitation plan will enhance forest quality and soil conservation through planting and enriching forests. It can also act to link STNR to the forested areas to the northwest (recommended area for rehabilitation) of the reserve, creating forest continuity in the landscape and securing ecosystem functioning in one of the largest conservation corridors in the Indochina region. The official establishment of land allocation for rehabilitation, whether inside or outside the reserve, and its actual location will be negotiated with the management board of STNR and provincial authorities. The local communities will be employed to carry out the rehabilitation. Rehabilitation will also directly contribute to ADB’s biological conservation corridor initiative, the conservation goals of Quang Nam Province and watershed integrity.

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2. Operational Period

71. The riparian (riverine) vegetation in the reduced flow stretch will be affected. However, no known protected plant species are reported from the riparian habitats, although they provide refuge and serve as important spawning areas for aquatic life. Vegetation communities are otherwise common and widely distributed in the area, and no typical wildlife habitats were noted in the project areas. Some of the revegetated terrain (particularly the steep slopes) of the project sites will need to be monitored for revegetation, and not be exposed to grazing or logging during construction and operation. H. Aquatic Ecology 72. Impacts downstream of the dam. During the initial filling of the reservoir, a compensation flow will be released to the river downstream of the dam. The period with this initial filling should be as short as possible. The regulation will have a significant impact on the aquatic life downstream. Long-distance migratory species (e.g., the highly priced fish Angulla marmorata) will disappear because of the barrier effect of the dam. The large diurnal flow and water level variation in the river between the dam and the confluence with Cai River will strongly reduce the biological productivity of the river by up to 75%. Periphyton, bottom animals, and fish will decline, both in production and in biodiversity. In the stretch downstream of the confluence with Cai River, the impacts will be smaller—up to 30% loss in fish yield. Mitigation for these losses are included in the social mitigation proposed in the resettlement plan. A stepwise start/stop procedure in the power station will result in more gentle water level variations and will reduce the negative impacts caused by especially rapid drops in water levels. 73. Impacts upstream of the dam. The inundation will result in a loss of river habitat of 30 km, which will be replaced by a lake with large water level fluctuation (planned 27.5 m between FSL and MOL). All life in the littoral zone will die because of the periodical dry up of the reservoir banks. The regulation zone will be heavily eroded, rendering a denuded, inorganic, desert-like zone of sand, gravel, and stones where nothing can grow. Inorganic erosion material will settle in the reservoir bottom and reduce the nutritional value of bottom sediments for animals dwelling at the bottom. In the first years after the regulation, fish productivity will be relatively good because of the supply of food and nutrients from the inundated terrestrial land. However, over time, fish productivity will be markedly reduced and the potential for fish harvest will be low. Only a few fish species will succeed in adapting to a lake life. In the reservoir, the biodiversity of fish will be reduced by 30–50%. However, most of these species will survive in small populations in the upstream part of the river and in the tributaries. 74. Creation of the dam will eradicate the long-distance migrants from the upstream areas of the watershed. This will particularly affect the Anguilla marmorata but there are probably few other long-distance migrants as far from the sea as the Song Bung 4 dam site. Some fish species that will stock the reservoir will probably use the inlet rivers for spawning, the implications of which are unknown but their assessments will be undertaken in the cumulative impacts studies mentioned below. 75. Natural fish production in the reservoir. The Song Bung 4 HPP reservoir is estimated to have a natural fish productivity of 20 kilogram per hectare (kg/ha) per year. Aquaculture in the reservoir could increase fish productivity by an additional 5 kg/ha. Together, these could provide protein for 2,500 people annually, if fish is eaten every second day. This fish life and productivity is dependent on upstream spawning habitat. 76. Compensation flow. The distance from the dam site to the outlet of the power plant is approximately 5.5 km. The A Vuong River, which enters Bung River 2 km upstream of the

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outlet, will be almost dry in future during large parts of the year since there will be no release of compensation flow from A Vuong dam site. Several fish species in the Vu Gia river system are upstream spawning migrants. The EIA recommends a compensation flow is released from the SB4 reservoir in order to maintain a continuum of the river between the cascade of dams, keep the longest possible river stretch for spawning and thereby contribute to increased fish productivity of the downstream reservoir, and to provide water for wildlife and domestic animals especially in the dry season. Such a release would be consistent with the principles of the Vietnamese National Water Resources Strategy Toward the Year 2020, that was approved by the Government in June 2006 and also to some extent reflects the international recommendations on environmental flows, for example from organizations such as The World Commission on Dams, The World Bank, and European Union Water Framework Directive. 77. The release of a compensation flow from the SB4 reservoir would result in an increase in project costs and possible reduction in firm power generation. Preliminary indications are that a compensation flow equal to the current dry season minimum river flow would significantly impact the economic viability of the project. There is however insufficient baseline data and analysis of aquatic and riparian ecosystems, and affected livelihoods on which to take an informed decision on the benefits and costs, other than lost energy cost, of a compensation flow. Therefore a precautionary approach is recommended that allows more time for study to determine the environmental and social benefits of a compensation flow release. The scope of the study, to be undertaken during the technical design phase, will include aspects related to hydrology, aquatic and riparian ecology, livelihoods of downstream communities, technical design and economics and it will take place over one annual hydrological cycle including the fish migration periods from September to November 2006 and from May to June 2007. The study would also examine the technical options of generating power from the compensation release if any in order to mitigate the economic impact.

I. Sociocultural Environment 78. Sociocultural impacts will be felt in four main impact zones:

(i) Song Bung 4 reservoir impact zone, in which (a) three villages will be significantly impacted, and require relocation and full livelihood restoration, (b) one village will be partially impacted and its housing area will require relocation, and (c) a fifth village will be impacted, although probably positively, as the host village.

(ii) Project construction and auxiliary lands impact zone, in which local villagers will be impacted because of land acquisition by (handover to) the construction and hydropower company to build infrastructure.

(iii) Downstream and upstream impact zone, in which impacts will be mainly on riverine fisheries.

(iv) Construction-related social impact zone or phase, caused by the large influx of mainly Kinh workers and camp followers.

79. In the Song Bung 4 Reservoir inundation impact zone, the significance (not the quantities) of the main direct impacts on houses, productive lands, and livelihood resources is summarized in Table 8.

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Table 8: Summary of House and Land/Livelihood Impacts caused by Reservoir Inundation

Impacts from Reservoir Inundation (%)

Village No. of

HH House

Facilities Lowland Gardens

Fish Ponds

Upland Fields

Grazing Areas Fisheries

Zuoih Commune 1. Pa Dhi 55 100 100 100 30 50 100 2. Pa Rum B 49 100 100 100 50 70 100 3. Thon 2 48 100 100 100 30 50 100 4. Pa Rum A 33 50 20 20 10 10 50–70 5. Papang 25 0 0 0 0 0 0 Ta Bhing Commune 6. Pa Lua 0 0 0 15 15 25

No. = number, HH = household. Source: Village consultations during the project preparatory technical assistance . 80. The following community assets will also be inundated by Song Bung 4 HPP: (i) 12 small-scale gravity-type domestic water supply systems, (ii) 21 school classrooms, (iii) 4 rooms of the communal health station, (iv) 6 rooms of the communal People’s Committee, (v) 1 footbridge, and (vi) 29 ha of estimated productive land and forest that will be inundated. 81. All of these facilities will be fully restored in the resettlement sites and with a detailed program in the Resettlement and Ethnic Minority Development Plan (REMDP). 82. The proposed mitigation measures for the main impacts caused by reservoir inundation are summarized in Table 9. For two of the four relocating villages is close to the current village settlement, and with the current village boundaries. For the third village, the resettlement site is about 5 km away, and it will be within the enlarged current village boundaries. For the fourth village, the resettlement site is about 5 km from its current site: the resettlement site is where village was located about 40 years ago, prior to government-sponsored relocation to the Song Bung river valley floor, which will now be inundated.

Table 9: Summary of Social Impacts and Proposed Mitigation

Impact of Reservoir Inundation Proposed Mitigation Measures in the RP Loss of houses and housing land Provision of new house on new housing

land. Design and materials chosen by APs. Possible for APs to build own house. Assistance to move materials of current house, if required (but not counted as part of new materials entitlements).

Loss of domestic water supply Provision of new domestic water supply Loss of agriculture lands—wet rice paddy fields, gardens, etc.—along river valley

Provision of land and irrigation system to service the land—mainly for garden crops but also for wet paddy rice. Support to develop as much wet rice paddy as possible. Participation in a minimum 5-year agriculture development program.

Loss of fishing resources from the river Reservoir fisheries will likely not be able to fully replace current riverine fisheries but a reservoir fisheries and management program will be developed and supported, securing

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Impact of Reservoir Inundation Proposed Mitigation Measures in the RP fishing rights. Support for raising fish in cages in the reservoir. Support for raising fish in ponds.

Loss of livestock-raising areas Fodder production support and extension, linked to irrigation system. Participation in a minimum 5-year livestock development program, using appropriate breeds and techniques.

Loss of access to forest resources along Song Bung river (about 10% of current forest resources)

Ensure access to remaining forest resources. Participation in a community-base forest development program (allocation of land for protection management, securing user rights, NTFP harvesting and agro-forestry).

Possible social stress and loss of social resilience caused by resettlement

Consultation with APs on all steps of the Project. Ensure all mitigation measures are designed and implemented, where possible by APs.

Loss of graves or other spiritual sites (inundated)

Full consultation and relocation of graves via a socially and ethnically sensitive process.

Disruption to one host community from in-migration and greater pressure on their land and livelihood resources

All development programs will be developed for host communities.

AP = affected person, NTFP= non timber forest product, RP = resettlement plan. Source: Social report of the project preparatory technical assistance

83. The mitigation plan is based on the following resettlement principles:

(i) The resettlement plans developed will have three main elements: (a) compensation for lost assets, livelihood, and income; (b) full assistance for relocation and assets restoration; and (c) long-term assistance for livelihood restoration to achieve at least the pre-

project level of well-being or above the poverty line, whichever is the greatest.

(ii) Involuntary resettlement as a development opportunity, with the aim of transforming dispossessed or displaced people into project beneficiaries, particularly the poor and vulnerable.

(iii) The resettlement policy and plan will be compatible in substance and structure with affected ethnic minorities’ culture and social and economic institutions.

(iv) Consultations and participation have been and will continue to be an integral feature of the Project’s planning and implementation for: (a) infrastructure such as housing and villager layout (livelihood restoration and development programs); and (b) participatory monitoring and evaluation. This participatory planning and design undertaken in the planning phase will be confirmed or modified via full consultative and participatory processes in the implementation phase have been undertaken to develop the policy and plan (and entitlements) final consultation shall be undertaken prior to finalization of project design to ensure that affected persons (APs) will be an integral part of the process. Thus, the participatory processes embodied in grassroots democracy are used to select all infrastructure investments.

(v) The utilization of local Government of Viet Nam institutions—district people’s committee and commune people’s committee as well as the specially

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established district and village resettlement committees—will be maximized for the preparation and construction of the Project, and capacity building will be required. A resettlement management and implementation unit will be established. At the village level, they will work with the specifically established village resettlement teams.

(vi) The livelihood restoration and infrastructure development components will be integrated into the Government’s socioeconomic planning process, where appropriate.

(vii) A grievance process will be established and supported to deal with any issues or concerns raised during project implementation.

(viii) The process of resettlement and restoration takes a long-term perspective; a minimum 5-year resettlement period is currently envisaged—flexible and creative. A consultative and iterative planning process will be instituted and facilitated by full-time technical assistant and support to district people’s committee staff located in the villages to ensure that the final planning and implementation process address the priorities of all APs, including the poorest and women.

84. In the project construction and auxiliary lands impact zone, local villagers will be impacted because of land acquisition by (handover to) the construction and hydropower company to build infrastructure such as access roads, construction camps, dam, power house, and transmission line lands. The impact of such acquisitions will be loss of land and forest resources. The extent of such losses is summarized in Table 10. Surveys to date have indicated that no houses will be impacted and no relocation will be required. Table 10: Summary of Estimated Land Acquisition Requirements and Affected Persons

Affected Persons

Type of Impact Unit Scope of Impact HHs/APs

Ethnic Minority HHs

Poor HHs

A. Construction Areas—Preliminary Level

31/180 31 8

1. Land for Rice Cultivation (ha) 18.00 2. Land for Other Crops (ha) 8.00 3. Fish Pond (ha) 0.09 4. Land for Cattle Farming (ha) 15.00 5. Utilization of Forestland (ha) 20.50 6. Field Huts (No.) 10.00 7. Graves (No.) 258.00

B. Relocation of Highway 14D 0/0 0 0 1. Cropland for Rice Cultivation (ha) 0.50

C. 220 kV Transmission Line 1. Permanent Acquisition for

Tower Foundation 0/0 0 0

a. Land for Rice Cultivation (ha) 0.22 b. Land for Other Crops (ha) 0.10

2. Temporary Acquisition for Construction of Line

0/0 0 0

a. Land for Rice Cultivation (ha) 34.80 b. Land for Other Crops (ha) 15.90

AP = affected person, ha = hectare, HH = household, kV = kilovolt, No. = number. Source: Social Report of the project preparatory technical assistance. 85. The mitigation measure for such impact is purchase of the land from the current owners and/or users. However, if the land loss results in an impact of more than 10% of APs’ total income (cash and imputed), the Project will be responsible for ensuring that that livelihood lost because of land loss be restored.

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86. Impacts in the downstream and upstream impact zone will be mainly on riverine fisheries because of (i) changes in hydrology; (ii) change in water quality; and (iii) especially, changes—cessation—of fish migration caused by the dam. The upstream impacts are expected to be small, details of which were presented in the technical report. The downstream area can be divided geographically into three zones: (i) between the dam site and the confluence with Cai River with Padau as the only village here; (ii) Dai Son Commune, with eight villages located around the confluence of Bung River with Cai River, with two villages on the Bung River; and (iii) nine other communes in Dai Loc District, downstream from Dai Son Commune (further downstream from the confluence of Bung River with Vu Gia River). Table 11 summarizes the catch and possible impact in the three downstream zones.

Table 11: Number of Fishing Households, Total Fish and Aquatic Product Catch, and Expected Impact in Downstream Areas

Number of Households Predicted Impact

Downstream Zone Total Fishing Subsistence Commercial

Annual FAP Catch (kg) (%) (kg of

FAP)

Zone 1 Padau Village 38 34 34 4,704 90 4,234

Zone 2 Dai Son Commune 679 98 66 32 26,181 50–90 21,400

Zone 3 10 other Communes 25,067 1,536 982 554 237,712 50 118,856

Total 1,668 1,082 586 268,597 144,490 FAP = fish and aquatic product, kg = kilogram. Source: Social report of the project preparatory technical assistance. 87. Other downstream impacts could include (i) increased risk to human and animal safety because of rapidly fluctuating water levels, (ii) loss of dry season grazing land, (iii) increased threats of waterborne diseases, (iv) erosion on river banks leading to increased turbidity, potential loss to, e.g., river access and river bank agriculture, and (v) decrease in annual regenerative floods in downstream alluvial agricultural areas. 88. Possible positive impacts may be (i) increased irrigation opportunities to higher levels in the dry season, (ii) reduced flooding on the coastal plain in the wet season, and (iii) reduced saline intrusion in the coastal plain in the dry season. 89. Possible mitigation measures for fisheries impacts will be based on livelihood restoration, including aquaculture, livestock, and irrigated crop production programs. Mitigation for other possible impacts will depend on clearer estimation of the extent and location of such impacts. 90. The construction phase social impact zone or phase may experience the following impacts, caused by the large influx of mainly Kinh workers and followers: (i) safety, especially along the roads; (ii) HIV/AIDS, sexually transmitted diseases, and other health risks; (iii) social and cultural disruption, alcoholism, prostitution; (iv) human trafficking; and (v) increased competition for natural resources. 91. Possible mitigation measures for construction phase social impacts will be a comprehensive program of social management, community mobilization, public health, and contractor and project owner control and management of its workers, including:

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(i) good planning and management of construction worker camps, including environmental sanitation; provision of meals and other facilities within the camps; and use of camp rules;

(ii) institution of a policy of preferable hire of local, as opposed to immigrant, labor;

(iii) capacity building of local social welfare and law enforcement agencies; (iv) support to the District Planning Office; (v) support for the Department of Road Offices, including support for a road

traffic safety program; (vi) support for town planning of villages near the construction site; (vii) ensuring adequate water and sanitation and wastes infrastructure; (viii) implementation of a public heath program; (ix) support for a population management and security program; (x) support for human trafficking information campaigns, and the development of

a village anti-trafficking network; and (xi) institution of a mechanism to resolve conflicts between villagers, construction

workers, and camp followers. 92. These activities will be incorporated in two resettlement and ethnic minority development plan programs: the construction phase social management plan and the public health action plan. Both of these programs will be closely coordinated with the EMP and its implementation framework. J. Roads and Transmission Lines 93. The Project includes 35 km of 220 kV transmission line, 38 km of 35 kV transmission line, about 20 km of access and service roads, a new part of Highway 14D, and about 20 km of roads to planned resettlement areas. The access roads and roads to resettlement areas are all dead-end roads. 94. To minimize the negative impacts from the new roads to be constructed, especially on the reservoir, guidelines for integrating environmental considerations into constructing and maintaining roads supported by the Project have been prepared as good engineering practice. The guidelines, which will be an annex to the main EIA and EMP, will be included in all contractor bidding documents and operating contracts. They are based on experience from road construction and maintenance in the project area, and general experience with road construction and maintenance in mountainous areas in Viet Nam. There are few relevant existing roads in the project area, apart from Highway 14D. The guidelines focus on possible impacts on the reservoir, and have an introduction with discussions on common types of erosion and slope failure, stabilization, protection, drainage and trimming, including experience on shortcomings. The technical guidelines cover all aspects of road construction, such as (i) clearing and grubbing; (ii) roadway excavation; (iii) channel excavation; (iv) excavation and backfill of structures; (v) embankment; (vi) subbase and base; (vii) pavements; (viii) drainage, pipes, and outlets; (ix) grassed areas; (x) slope protection; and (xi) mortared stonework. The maintenance and environmental management required in relation to roads, including monitoring needs, are also included in the guidelines. 95. The 220 kV transmission line from Thanh My to the power station will be located north of Highway 14D on the opposite side of Cai and Than rivers. A section of this 220 kV line passes through good quality forest (5.70 ha with >75% tree cover). The 35 kV transmission line will follow Highway 14D and the access road to the project site. Transmission lines can impact animals and precautions will be taken during construction and vegetation clearing. Due to line clearing, access to forested areas will increase in relation to the 220 kV transmission line. The 220 kV transmission line corridor in the vicinity

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of the forest will be guarded. Fines will be imposed for illegal activities and illegal activities will be monitored as part of the environment management unit (EMU). K. Induced Impacts 96. The Project will have many positive induced impacts. These will include supporting CBFM in Zouih commune, which will help reduce poverty levels. Concrete and legal land allocation agreements will be set up with the residents of the commune, using participatory approaches. Local people will have legal access to the forest for NTFPs, and will engage in planting and enriching production forest, in addition to protecting forest (designated as protection forest in Viet Nam). These activities will reduce the pressure of illegal logging, hunting, and soil loss; and add to the overall greening of the region. The CBFM will entail training and capacity building in forest management, which will enhance local know-how and awareness of forest resource vulnerability. The support of such a CBFM program will also help reduce the exploitation on forest resources by workers during the construction period. The planting and enrichment planting of forest in relation to STNR will help create a green corridor, linking STNR to the high quality closed forests to the northwest of the project area, increasing landscape continuity. An environmental awareness campaign and training as part of the EMP, will increase the general level of environmental consciousness of workers. Along with imposing fines, this will contribute to reducing pressure on natural resources in the area. Capacity building of institutions for environmental protection and training will increase general know-how, awareness, and competency; and help lessen illegal activities in the area. 97. The Project will have a number of negative induced impacts. Improved road conditions in the project area and improved boat use opportunities along the reservoir will increase access to the area for illegal logging and hunting activities. As STNR is located close to Highway 14D (which will be upgraded), the forest on the higher slopes of the mountains is exposed to loggers who will have more options for transporting timber than mainly by river. The forest areas of STNR will have increased protection, as proposed in the environmental protection and capacity building plan, to mitigate such potential logging impacts. The general better status of roads and infrastructure may encourage new settlements (including various shops) in the vicinity of the Project, which will require monitoring to ensure that waste is treated and land is not exposed, leading to soil loss. 98. The general increase in transport options because of new and upgraded roads and the reservoir may result in increased tourism and mining in the area, putting pressure on natural resources; encouraging illegal hunting, fishing, and logging; and exploitation of NTFPs. Resources allocated for the use of local communities may also be at risk. In addition, the transmission line corridor will go through and increase access to forested areas. Illegal acts threaten the ecological integrity of the area as a whole and require control. Illegal activities will be monitored and controlled using road controls, guards, and sanctions. Villagers will be trained (forming village protection teams) to protect their resources and the environmental awareness campaign (part of the EMU) will help reduce impacts. 99. Negative social induced impacts will include (i) the long-term impacts of physical and social health problems that arise during the construction phase; (ii) the probability that some construction workers will stay in the area, thus increasing the pressure on locally available resources and land; and (iii) increased or improved access to resettlement villages will increase the immigration of Kinh, who will tend to extract local natural resources to the detriment of the local Co Tu. A further impact may be loss of Co Tu ethnic identity because of the resettlement program, which will increase exposure to television and may decrease reliance on indigenous self-help livelihood systems.

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L. Cumulative Impacts 100. The Song Bung 4 HPP is one of eight HPPs planned in the Vu Gia–Thu Bon river system. All the projects are planned to be commissioned before 2016, according to Masterplan VI. Most of the projects are in Vu Gia River; only Song Tranh 2 is in Thu Bon River (Map 3). However, Dak Mi 4 will affect both rivers since the outlet from the power plant will be to one of the tributaries of Thu Bon River. Two of the projects are under construction with a total installed capacity of 372 MW. The six additional planned projects, including Song Bung 4, will have a total capacity of 782 MW. Some details of the planned power stations and reservoirs are in Table 12.

Table 12: Planned Hydropower Plants in Vu Gia–Thu Bon

Name Capacity (MW)

Reservoir Regulation

(m)

Active Reservoir Capacity (mg/m3)

Construction Status

A Vuong 210 40.0 266.5 Under construction Dak Mi 1 215 35.0 93.4 Planned Dak Mi 4 180 18.0 158.0 Planned Song Bung 2 100 40.0 69.2 Planned Song Bung 4 156 27.5 320.7 Planned Song Bung 5 85 2.0 4.6 Planned Song Con 2 46 1.0 0.1 Planned Song Tranh 2 162 35.0 521.1 Under construction

Total 1,154 m = meter, mg/m3 = milligram per cubic meter, MW = megawatt. Source: Hydrology report of the project preparatory technical assistance. 101. The relatively small Song Bung 5 reservoir will act as a re-regulation reservoir for Song Bung 4, Song Bung 2, and A Vuong upstream hydropower plants, resulting in no daily water level fluctuations from peaking downstream of that dam. The six large and medium-sized reservoirs can be operated in a way that increases the downstream flow in dry months and decreases the flow in wet months. Increased flow in dry periods will give a more secure supply of water for irrigation, domestic, and industrial use. On the floodplain, where most of the water users are located, increased flow in low flow periods may also reduce negative impacts from salinity intrusion from the sea. To some extent, reservoirs can reduce negative impacts from floods. The HPPs will not change the annual volume of water availability significantly—only some evaporation losses from the reservoirs. Typical low flows, taken as flows that will be exceeded 90% of the time as well as typical high flows that will be exceeded 10% of the time, are shown in Table 13. The flows are given for different hydropower development scenarios in Vu Gia and Thu Bon rivers where the rivers enter the floodplain.

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Table 13: Simulated Flows for Different Hydropower Development Scenarios (m³/s)

Vu Gia River Thu Bon River

Scenario Typical

Low Flow

Mean Flow

Typical High Flow

Typical Low Flow

Mean Flow

Typical High Flow

Natural Conditions 54 298 627 32 288 646 With AV HPP 65 298 614 32 288 646 With AV and SB4 HPP 90 298 584 32 288 646 With AV, Song Bung 2,4 and 5 HPP 93 298 581 32 288 646 With all 8 HPPs in the river systema 87 247 468 100 339 702 AV = A Vuong, HPP = hydropower project, m3/s = cubic meter per second, SB4 = Song Bung 4 Hydropower Project. a The large variations in typical low and high flows with this scenario are due to the inter-basin transfer of water

through Dak Mi 4 HPP. Source: Hydrology report of the project preparatory technical assistance.

102. The main environmental impacts from the hydropower developments will include:

(i) buildup of sediment in reservoirs; (ii) increased water loss through evaporation; (iii) erosion in reservoirs and downstream river stretches because of water level

fluctuations; (iv) riparian vegetation and habitat destruction along the banks of reservoirs and

rivers; (v) reduction in fish populations and diversity in reservoirs and affected rivers,

and largely reduction in fish migration; (vi) addition to natural fish production in the reservoirs and fish production in the

rivers because of aquaculture in the reservoirs; and (vii) potential loss in terrestrial biodiversity and habitats, and increase in

landscape fragmentation. 103. Mitigation measures to minimize environmental impacts from the proposed hydropower developments in the Vu Gia–Thu Bon basin must include operational rules for the projects, taking into account environmental issues and close coordination by hydropower operators, Department of Natural Resources and the Environment (DONRE), and downstream water users to ensure coordinated resource management. The Project’s mitigation measures will minimize impacts to the environment and livelihoods. For example, mitigation for impacts on fish species and fisheries will be based on livelihood restoration plans (including aquaculture and livestock). Given that there is a lack of consolidated information on the environment of the basin (particularly aquatic and terrestrial biodiversity, and land cover/use), more detailed studies are needed. Studies will be undertaken in separate projects to assess the potential to conserve certain rivers or reaches of rivers in an unregulated state to maintain some of the local fish diversity. Studies of fish, riparian, and terrestrial aspects, among others, are included in the Cumulative Impact Asessments Project (approved December 2005)13 for MONRE, focusing on the entire Vu Gia–Thu Bon river basin as a pilot study area. 104. Hydropower development in the Vu Gia–Thu Bon river basin will also have potential cumulative impacts because of the increase in transport; irrigation development; erosion; expansion into forested lands; urban growth; tourism and tourism-related trade; illegal mining and logging; and exploitation of forest, water, and biodiversity resources and multiplier effects related to increased work force and camp followers. Policy development

13 TA 4713-VIE: Capacity Building in Strategic Environment Assessment of Hydropower Sector, approved

December 2005.

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will be required to manage these cumulative impacts and set up best practices including, but not limited to, (i) the development of integrated water resources management for the basin, (ii) institutional arrangements for river basin organization coordination, and (iii) river basin-watershed conservation programs.

VI. ECONOMIC ASSESSMENT

A. Environmental Costs 105. The total project investment is $250.8 million. The environmental investment covers temporary environmental protection measures, permanent environmental protection measures, and environmental monitoring (Table 14).

Table 14: Estimated Environmental Management Costs ($)

No. Item Cost A. Pre-Construction and Construction Periods 1. Environmental Protection Measures

a. Environmental Protection and Capacity Building i. Capacity Building for Protection and Guards14 60,000 ii. Capacity Building for Institutions15 10,000 iii. Environmental Awareness 15,000 b. Conservation Off-Sets

i. Community-Based Forest Management & Watershed protection16

300,000

ii. Song Thanh Nature Reserve Rehabilitation17 120,000 2. Monitoring

a. Monitoring during Project Pre-Construction and Construction

i. Water Quality 8,000 ii. Air and Noise 7,000

3. Operating Cost of EMU to be set up by HPPMB 3 100,000

Total (A) 660,00 B. Operation Period ( Annual Cost)

a. Water Quality 5,000 b. Greenhouse Gases 1,000 c. Fish Yield and Species 3,500 d. Mercury Content in Fish 1,500 f. Community Based Watershed Protection14 100,000 e. Forest Guards 14 10,000

Total (B) 121,000 Source: Environmental impact assessment of the project preparatory technical assistance.

14 The financing mechanism for this item is subject to further discussion with MONRE, Ministry of Agriculture &

Rural Development, Quang Nam DONRE, and Song Thanh Nature Reserve Management Board (STNRMB) as EVN does not have a mandate to financing the watershed management and reforestation under current Vietnamese Regulations. .

15 Capacity Building and Training for Quang Nam DONRE, Forest Protection Department of Quang Nam, STNRMB, and Nam Giang District staff on forest protection. 16 This is also subject to further discussion with EVN, MONRE, Quang Nam DONRE and Forest Protection

Department as Quang Nam PPC is responsible for water shed protection and reforestation. This is also included as a livelihood activity in the Resettlement & Ethnic Minority Development Plan.

17 This depend on the site specific rehabilitation options decided by STNRMB.

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B. Environmental Benefits

106. There is a fast-growing projected demand for electricity in Viet Nam from 2005 to 2025. The demand in the central region of Viet Nam, where Song Bung 4 HPP is located, has the fastest rate. The Song Bung 4 HPP is part of a vigorously planned schedule of capacity addition, and is scheduled to be added to the grid in 2011. With its location in the central part of the country, and the fast-growing need of power transfer between north and south, Song Bung 4 HPP will also have great importance in stabilizing the high voltage transmission line stretching over the whole country. 107. General advantages of hydropower are:

• better distribution of power resources—the central region is rich in water resources, while the northern part is rich in both water and coal resources, and the southern part is rich in gas resources;

• independence of fuel price variations; • less emission of greenhouse gases compared with emissions from oil, gas, or coal-

fired plants; and • contribution to the development of remote areas.

108. Nonquantifiable environmental benefits of Song Bung 4 HPP include (i) limited improved flood control in Vu Gia River, (ii) irrigation benefits in the dry period of the year, and (iii) positive contribution to minimize the salt intrusion problem on the floodplain. The Song Bung 4 HPP yields an economic internal rate of return of 14.4% and a corresponding net present value of $42.76 million over the project lifetime of 40 years.

VII. ENVIRONMENTAL MANAGEMENT PLAN

109. Institutional structure. EVN is the Executing Agency (EA) for the Project and has overall responsibility for ensuring that all environmental standards and procedures are followed. The environmental standards are set by MONRE. The Quang Nam provincial agency responsible for implementing and monitoring environmental procedures is DONRE. The Implementing Agency (IA) will be the Hydropower Project Management Board No. 3 (HPPMB3). Prior to project construction, the IA will set up an EMU for environmental management and operation, including environmental supervision of contractors. The EMU will ensure implementation of the EMP and environmental monitoring plan during construction and operation of the Project. The EMU will be staffed by a project manager and technical personnel. 110. Environmental management plan. The summary EMP in Table 15 is based on the full EMP in the EIA. The IA will translate the SEIA, including the summary EMP, into Vietnamese. The IA will ensure that the SEIA (including summary EMP) and the full EMP (included in the EIA) with the road guidelines are included in all contractor bidding documents and operating contracts. Song Bung 5 HPP, acting as a re-regulating reservoir, is regarded as a condition to some of the mitigation measures in Table 15 such as water quality and aquatic life. The EMU will be responsible for implementing the EMP during the construction and operation periods. The EMU will coordinate all environmental monitoring activities as summarized in the SEIA and the full EMP. The EMU will ensure that the EMP is updated periodically during the construction period. An independent environmental supervision consultant will supervise and monitor environmental procedures as part of the duties of the implementation supervision consultant. The EMU will submit reports (including physical data) on implementation of the EMP to the EA, DONRE, and ADB twice annually during construction; and annually to ADB for 2 years after completion of construction.

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Table 15: Summary Environmental Management Plan

Environmental Impact/issue

Mitigation Measures Location Responsibility

A. Design Phase

Water quality (i) Existing control capacity will be strengthened with forest guards/officers because of the possible increase in mining activity in the reservoir area and upstream rivers/areas

(ii) Water quality will be monitored in Bung River

Entire project site

HPPMB3 DONRE

Forest Ongoing monitoring will be required because of possible increased logging activity within and in the vicinity of the reservoir and other project areas, as well as increased activity in general in the project area. All areas will be controlled by guards and fines will be imposed for illegal activities.

Entire project site

HPPMB3 DONRE

B. Construction Phase

1. Soil

Loss of topsoil Rehabilitation of borrow areas and temporarily acquired land

Loss of topsoil will be avoided by stripping and storing topsoil prior to construction and reusing it for rehabilitation. Sand and coarse aggregate requirements will be collected from a sandpit at Cai River near Thanh My. Soil borrow pit and quarry will be used for project activities. There is no topsoil at the river, but the soil is prone to erosion at the other sites although there is vegetation cover. In all other cases, erosion will be minimized by regular rehabilitation of areas not in use for project activities during construction. Rehabilitation will include: (i) regrading and immediate revegetation of slopes to

minimize erosion (using fast-growing species and different functional groups of plants to keep soil in place);

(ii) use of topsoil removed and stockpiled from project areas;

(iii) installation of sediment runoff control devices; and (iv) erosion and revegetation success monitoring.

All construction sites All borrow/pit areas and temporarily acquired land

HPPMB3/ Contractor DONRE

Soil erosion and siltation

Soil erosion and siltation will be minimized by preventive measures and engineered storm water diversion on a case-by-case basis. All project areas will be ”greened” by planting trees and, where appropriate, shrubs and grasses to reduce erosion during the construction period. Road constructions will potentially lead to erosion, which will be minimized by suitable road engineering techniques and road edge buffer replanting (Guidelines for Road Construction and Maintenance)18.

All construction sites and access roads

HPPMB3/ Contractor DONRE

Soil contamination

Soil contamination will be prevented by installing oil separators at wash down and refueling areas, and by installing secondary containment at fuel storage sites.

Hydropower plant and material storage areas

HPPMB3/ Contractor DONRE

Disposal of excess earthworks

All excavated rock and aggregate will be used in construction where possible, while the spoil will be deposited in areas with minimum landslide potential; layered and covered with soil; and planted with trees, shrubs, and grasses.

Disposal areas 1, 2, and 3 (spoil areas)

HPPMB3/ Contractor DONRE

18 Environmental impact assessment of the project preparatory technical assistance.

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Environmental Impact/issue

Mitigation Measures Location Responsibility

Monitoring

Parameters for monitoring: heavy metals, and pesticide, details will be given in full EIA.

4 locations HPPMB3/ Contractor DONRE

2. Water Quality Disposal of septic wastewater

Wastewater discharge during the construction phase will consist of wastewater effluent discharge from the work camps. All wastewater will be treated to national standards. There will be no direct discharge of untreated sanitary waste to surface water bodies. Truck and other vehicle maintenance will be strictly controlled to prevent discharge of waste oil into the river.

Work camps, construction sites

HPPMB3/ Contractor DONRE

Reduced water quality in Bung River

Contamination of the river from waste, hazardous materials, and soil erosion and contamination will be minimized through mitigation measures connected to these issues. Possible increased mining activity will be monitored and controlled by guards. Regular monitoring of water quality in the river will be essential.

Bung River HPPMB3/ Contractor DONRE

Monitoring Parameters of monitoring include: PH, conductivity, turbidity, suspended sediments, oxygen, phosphorous, nitrogen and others. Frequency will be once every four months for the years 1–5, and once per year afterwards. Details will be given in the full EIA.

2 stations: one upstream the dam and another downstream the planned tail-race entrance

HPPMB3/ Contractor DONRE

3. Air Quality

Generation of dust

The main impact to air quality during construction will be increased dust levels from construction machinery, tunnel construction, rock blasting, foundation excavation, and cement mixing and road construction. Using water spray trucks for dust suppression will mitigate dust generation from construction traffic. Exposed parts of the service roads should be paved, particularly through villages. The main access road to the dam and power house will be paved.

All construction sites, all access roads

HPPMB3/ Contractor DONRE

Monitoring Parameters: dust, CO, NO2, SO2 , PB, O3. Frequency will be four times a year.

At three locations near construction.

HPPMB3/ Contractor DONRE

4. Noise

Noise impacts During construction, noise will be generated from vehicular movements, sand and aggregate processing, concrete mixing, excavation machinery, construction noise, and blasting. The main potential impact of high noise levels will be on construction workers. Mitigation measures for noise impacts on construction workers will include standard occupational health and safety practices such as ear protection and enforcement of exposure duration restrictions.

All blasting sites (cuts, rock quarries, tunnels etc.).

HPPMB3/ Contractor DONRE

Monitoring At three locations near construction.

HPPMB3/ Contractor DONRE

5. Solid Waste and Hazardous Materials

Hazardous and nonhazardous waste

(i) Disposal of domestic waste and construction waste will occur regularly to approved disposal sites.

(ii) Hazardous waste will be collected and stored on-site in approved facilities according to relevant standards. Hazardous waste will then be removed from site to approved hazardous waste disposal facilities.

Construction sites

HPPMB3/ Contractor DONRE

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Environmental Impact/issue

Mitigation Measures Location Responsibility

Hazardous materials

Potential impacts to the environment are from accidental spillages affecting soil, groundwater, and adjacent water bodies. Mitigation measures to prevent spillage will include installing appropriate hazardous materials storage facilities.

Construction sites

HPPMB3/ Contractor DONRE

6. Flora

Impact on flora (i) Vegetation will be removed at the construction sites. All work will be carried out in a manner such that damage or disruption to vegetation is minimized. After completion of construction activities, temporarily occupied areas will be revegetated.

Entire Project site

HPPMB3/ Contractor DONRE

(ii) Construction activities will require removal of trees. Instead of paying for each tree lost, the Project will support a community based forest management plan (conservation off-set) which will increase fauna and flora conservation and areas of land under forest while helping reduce poverty. All vegetation at the project site is widely distributed and there will not be any reduction of threatened habitats caused by construction activities.

(iii) The temporary increase in workers to the construction site will increase the potential for illegal fuelwood and non timber forest product collection and hunting. Mitigation measures will include (a) provision of heating and cooking options without use of fuelwood, (b) provision of environmental training on environmental management issues, (c) environmental protection by guards, capacity building of forest rangers, and imposing fines for illegal activities, and (d) community awareness campaign.

(iv) Building (access roads) and improvement (highway) of roads, and transmission lines in relation to the Song Bung 4 HPP will increase access to the forested areas in the vicinity and potentially increase illegal logging. Ongoing monitoring (guards), law enforcement, and sanctions will be necessary to control illegal logging activity.

(v) Vegetation will also be lost in the STNR. Similar sized area/s will be revegetated to the northwest of the reserve to create forest continuity in the landscape linking the reserve via a larger corridor with areas important for conservation and forested areas in the northwest (conservation off-set, rehabilitation plan).

STNR Management Board Provincial Forest Protection Department

7. Fauna

Impact on fauna (i) There is an increased potential for illegal wildlife hunting in association with the temporary increase in workers. Mitigation measures will include (a) provision of environmental training on environmental management issues, and (b) environmental protection by guards and imposing fines for illegal activities.

(ii) Construction activities will disturb the habitat of terrestrial animals immediately adjacent to the project site. This may result in movement of wildlife from the project vicinity to other forested areas. The STNR is located to the south of the Project and animals may be disturbed by noise and be subject to hunting. Mitigation measures will include enforcement of rules of the reserve, monitoring (guards) for illegal activities, and imposing of fines.

Entire project site

HPPMB3/ Contractor DONRE STNR Management Board Provincial Forest Protection Department

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Environmental Impact/issue

Mitigation Measures Location Responsibility

8. Aquatic Life

Impact on aquatic life

During initial filling of the reservoir, compensation flow will be maintained downstream of the dam. The reservoir will be filled up as fast as possible. Enforcement of regulations against illegal fishing activities such as using explosives will be imposed through mechanisms such as fines.

Bung River HPPMB3/ Contractor DONRE

Monitoring on fish yield and species

Data including fish yield, fish species, and mercury concentration in fish tissue will be collected. Details will be given in the full EIA.

Various locations in the Bung River and markets

HPPMB3/ Contractor DONRE

C. Operation Phase

Soil (i) Soil contamination will be prevented by installing oil separators at wash down and refueling areas, and by installing secondary containment at fuel storage sites. All hazardous wastes and hazardous materials will be stored in properly designed storage facilities.

(ii) Scour at the water outlet will be minimized through appropriate engineering design such as placement of erosion protection gabion mattresses.

(iii) Rehabilitation (revegetation) areas will be monitored to contain erosion.

Powerhouse, workshops, storage areas, and water outlet

Power Plant Operator DONRE

Wastewater disposal

Wastewater will be generated from canteens and septic wastewater in the hydropower plant and residential areas. All wastewater will be treated to national standards. There will be no direct discharge of untreated sanitary waste to surface water bodies.

Hydropower plant and accommodation area

Power Plant Operator DONRE

Water quality (i) Monitoring will be carried out of water quality parameters, including parameters for greenhouse gases, in the reservoir and in the downstream of the power station outlet.

(ii) Rapid water level fluctuations from peaking should be made more gentle by stepwise start and stop in the power station.

(iii) Roads will be maintained in accordance with the recommendations in the road guidelines in order to minimize negative impacts on the reservoir and river.

Reservoir and Bung River

Power Plant Operator DONRE

Monitoring of water quality

Parameters of monitoring include: PH, conductivity, turbidity, suspended sediments, oxygen, phosphorous, nitrogen and others. Frequency will be once every four months for the years 1–5, and once per year afterwards. Details will be given in the full EIA.

7 stations in the reservoir and downstream of power station.

Power Plant Operator DONRE

Noise impacts Noise will be generated from the generators. Noise reduction measures will be taken where required to reduce the noise level at the project boundary. Mitigation measures during operation for noise impacts on workers will include standard occupational health and safety practices.

Hydropower Plant

Power Plant Operator DONRE

Solid waste disposal

Domestic and industrial wastes from the hydropower plant and accommodation facilities will be disposed of in existing approved municipal and hazardous waste disposal sites.

Hydropower plant and accommodation area

Power Plant Operator DONRE

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Environmental Impact/issue

Mitigation Measures Location Responsibility

Aquatic life

(i) The regulation will have a significant impact on the aquatic life downstream. The fishery yield will decline significantly. In the reservoir, the biodiversity of fish will be reduced by 30–50%. However, most of these species will survive in small populations in the upstream part of the river and in the tributaries. The creation of the dam will eradicate the long-distance migrants from the upstream areas of the watershed. The Song Bung 4 HPP reservoir will have a natural fish productivity of 20 kg/ha per year. This fish productivity may be increased by 25% by introducing aquaculture in the reservoir.

(ii) Several fish species in the Vu Gia river system are upstream spawning migrants. In order to minimize loss of the river continuum, keep the longest possible river stretch for spawning, and provide water for wildlife (especially in the dry season). Compensation flow is recommended for release, the extent of which will be decided upon based on further studies.

(iii) Downstream of the power station, outlet release of compensation flow (from the dam) will reduce negative impacts when the power plant is not operating. During peak production in the power station, daily start and stop will be taken stepwise to minimize impacts on aquatic life.

Reservoir and river downstream

Power Plant Operator DONRE

Downstream aquatic life monitoring

Monitoring will be done on fish meat mercury content, fish yield and fish species composition, and algal species composition in the reservoirs.

Downstream of the dam 3 stations.

DONRE

Reduced water flow at affected river section

The scope of the compensation flow study will include aspects related to hydrology, aquatic and riparian ecology, livelihoods of downstream communities, technical design and economics and it will take place, during the technical design phase of the project, over one annual hydrological cycle including the fish migration periods of September /November 2006 and May/June 2007. .

River section between dam and power station outlet

ADB and EVN

Flora and fauna rehabilitated areas CBFM

Enforcement of rules of the reserve and forest exploitation must be done. Monitoring (by guards) for illegal activities in forest around project areas and the imposing of sanctions as fines will be continued. Rehabilitated areas of STNR and the CBFM plan in Zuoih commune, and Bo Di (Cha Val commune) and Pa Toi (Ta Bhing commune) villages must be monitored to ensure that community forests are not encroached, user rights are secured and maintained, locally managed lands are not exploited by outsiders.

Project Area, The Reserve, and Zuoih commune

Power Plant Operator STNR Management Board Provincial Forest Protection Department

Rapid water level fluctuations in the river

A system to warn (sirens) downstream people when the power station is to be started. Several sirens should be installed down to the confluence with Cai River. The system can also be used for emergency situations involving sudden releases of large water volumes.

River downstream power station

Power Plant Operator

CBFM = community-based forest management, DONRE = Department of Natural Resources and Environment, HPP = hydropower project, HPPMB 3= Hydropower Project Management Board No. 3, kg/ha, kilogram per hectare, STNR = Song Thanh National Reserve. Source: Environmental impact assessment report of the project preparatory assessment. 111. Environmental Management Bureaus. Quang Nam DONRE currently has 66 staff, in 10 divisions. The Environmental Division has 6 staff, Natural Resource and Environmental division 5 staff, and Centre for Survey and Analyzes 8 staff. The Section of Natural Resource and Environment in Nam Giang District has 6 staff members. DONRE has staff with environmental monitoring competence covering the needs of the Project. The capacity

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building component of this Project will further train and update staff in environmental monitoring.

VIII. PUBLIC CONSULTATION AND INFORMATION DISCLOSURE

112. A series of stakeholder consultations relevant to Song Bung 4 HPP has been carried out. In 2005, during the feasibility study for Song Bung 4 HPP, PECC3 conducted meetings at village and commune levels. During the NHP study stage 2, stakeholder participation took place at different levels: (i) river basin workshop in Vu Gia–Thu Bon river basin in 2005; (ii) provincial workshop in Nam Giang province in 2004, targeting all directly affected districts and communes; and (iii) group discussions in 30 directly and indirectly affected villages in 2004. Consultations have been also carried out in the local ethnic language. 113. Since November/December 2005, consultation meetings have been held with relevant governmental agencies and nongovernment organizations, including MONRE, DONRE in Nam Giang Province, People’s Committee in Quang Nam District, STNR administration, and World Wildlife Fund in Nam Giang Province. Meetings were also held with EVN, HPPMB3, and PECC3 to discuss environmental matters. 114. The social and resettlement program of the Project has been based on consultations. At the same time as the initial baseline household surveys were undertaken in the four directly affected villages in the reservoir (February–March 2006) and the two potential host villages, consultative participatory rural appraisals were conducted to gain a better understanding of livelihoods systems, culture, and ethnicity. A second round of livelihood and ethnic consultations were undertaken (April–May 2006) to gain an understanding of resettlement livelihood requirements of APs and the potential of the resettlement sites. The ethnic consultations focused on the APs’ proposals for grave and community house (Guol) relocation, the participatory evaluation of some of the resettlement sites, and any special requests by APs in terms of the resettlement process. Following these consultations, an entitlements matrix was drafted and a final round of consultations was undertaken (June 2006) to gain a clear proposal from the APs in regard to house design, building modality, and resettlement sites. The latter issue was facilitated by support to key villagers to revisit the resettlement sites to confirm their final decisions. 115. Consultative participatory rural appraisals were undertaken in villages located along the river downstream of the Project to gain an understanding of the importance of riverine fisheries to these communities (April–June 2006). 116. In February 2006, the first multi-stakeholder workshop took place in Nam Giang District, to review and stimulate discussion among local stakeholders on the environmental and social impacts of the reservoir inundation component of the Project, and impacts in the project area. A total of 60 stakeholders attended the workshop. Participants gave their opinions on anticipated impacts and desired mitigation through discussions in small focus groups. Of special importance was the discussion on experiences from resettlement in the A Vuong HPP, in which representatives of APs from A Vuong participated. In April 2006, the second multi-stakeholder workshop took place in Tham Ky Provincial center to review and seek local stakeholders’ input to the understanding of downstream impacts of the Project. The 53 participants discussed impacts from Song Bung 4 HPP alone and possible cumulative impacts from all planned hydropower developments in the Vu Gia–Thu Bon basin. In July 2006, the third and final multi-stakeholder workshop took place in Nam Giang District, A total of 49 people participated to give local stakeholders feedback in regard to the Project’s environment management plan and resettlement and ethnic minority development plan. Concerns from both the second and third workshops, i.e., safety of people downstream of the dam, reduced sediment transport during operation, and increased amount during construction, water pollution during construction, changes in water quality,

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and effects on fish and aquatic life, were all addressed in the EIA and EMP. Viet Nam’s nongovernment organization, World Village Foundation, acted as facilitator in all workshops; and the project EA, IA, and provincial officials were present to explain and clarify matters related to impacts and mitigations.

IX. CONCLUSION

117. The Song Bung 4 HPP consists of a 156 MW hydropower plant and a reservoir with an active reservoir volume of 320 million m³. The Project is located in Quang Nam Province in central Viet Nam. The estimated total investment for the Project is $250.8 million, and the proposed construction period is almost 4 years. The annual energy potential is 537 million kWh. The reservoir will inundate about 1,600 ha at FSL. A total of 185 households in 4 villages will need to be resettled. In the construction areas, 31 households will be affected and 1,668 households in downstream villages will experience a significant impact from impacts on riverine fisheries. Major potential environmental impacts from the Project include (i) soil erosion, (ii) loss of biodiversity, (iii) increased pressure on STNR, (iv) loss of river continuum because of the dam; (v) a river reach with strongly reduced flow, and (vi) daily water level fluctuations downstream of the power plant because of peaking. Measures have been developed to mitigate and regularly monitor the impacts. Based on the EIA and the resettlement and ethnic minority development plan, the adverse environmental and social impacts of the Project can be minimized to acceptable levels by implementing adequately funded environmental and social management activities. Details of these activities are elaborated in the EMP, the resettlement and ethnic minority development plan, and the public health action plan. 118. The proposed Song Bung 4 HPP’s anticipated environmental benefits include (i) better distribution of power resources, (ii) independence of fuel price variations, (iii) less emission of greenhouse gases, (iv) a general contribution to the development of the area, (v) irrigation benefits in the dry months of the year, (vi) positive contribution to minimize the salt intrusion problem on the floodplain and (v) enhance watershed maintenance. The issue of compensation flow through further studies, integrated water resources management of the river basin, and COS programs are some of the salient items included in the project planning to adequately address the impacts to an acceptable level.