Safeguards Monitoring Report

Semiannual Report October 2015

BHU: Air Transport Connectivity Enhancement Project Yonphula Airport

Prepared by Ministry of Information and Communications for the Royal Government of Bhutan

and the Asian Development Bank.

CURRENCY EQUIVALENTS (as of 3 March 2016)

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ABBREVIATIONS

This safeguards monitoring report 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. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

ADB = Asian Development Bank CSC = Construction Supervision Consultant DEC = District Environment Committee DCA = Department of Civil Aviation DOF = Department of Forest EC = Environment Clearance EFRC = Environment Friendly Road Construction EMP = Environmental Management Plan ES = Environment Specialist IEE = Initial Environmental Examination NCE = National Environment Commission NRDCL = Natural Resource Development Corporation Limited NWF = National Work Force OHS = Occupational Health and Safety PC = Project Coordinator PM = Project Manager PMO = Project Management Office RGOB = Royal Government of Bhutan ROW = Right-of-way BHU = Basic Health Unit DGM = Department of Geology and mines

CONTENTS I. Introduction ................................................................................................................... 1

II. Description of the Project ............................................................................................. 1

III. Institutional Arrangements ........................................................................................... 4

IV. Status of Compliance .................................................................................................... 4

A. Compliance with the Terms and Conditions of the Environmental Clearance ....... 4

B. Compliance with Section 8: Particular Conditions of Contract Conditions ............ 6

C. Compliance with the EMP .................................................................................... 8

V. Conclusion and Recommendations ........................................................................... 11

Annexures Annex 1: Environmental Clearance ...........................................................................................12 Annex 2: Forest Permit .............................................................................................................15 Annex 3: Photolog .....................................................................................................................16

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I. INTRODUCTION

1. The Department of Civil Aviation (DCA) under Ministry of Information and Communications (MOIC), Royal Government of Bhutan (RGOB) has initiated a plan to improve the current state of the country’s domestic air transport system under the Air Transport Connectivity Enhancement Project (ATCEP) with the assistance of Asian Development Bank (ADB). Three newly constructed domestic airports of Bumthang (centre), Yongphula (east) and Gelephu (south) in the country have been identified for further upgrading and improvement, based on the relative importance of these airports as domestic hubs for tourism and economic development within the respective region. 2. The project was classified as Category B for environment safeguards in accordance with ADB’s Safeguard Policy Statement (SPS). Hence an Initial Environmental Examination (IEE) report for the upgrading and improvement works was prepared in accordance with the SPS and disclosed on the ADB website. The IEE was also prepared in a manner to comply with relevant laws and regulations of RGoB including the Environmental Assessment Act (2000) and the Regulation for the Environmental Clearance of Projects (2001). Based on the IEE, an environmental clearance for construction works under the Yonphula airport was issued on March 29, 2013 with a validity date of March 28, 2015 by the National Environment Commission (NEC).

3. Due to the limited social and resettlement impacts the project covering all three airports was classified category C for social safeguards. However during project implementation after finalization of the detailed design it was found that land acquisition of 0.67 acre affecting one household would be necessary for the Gelephu airport. Hence the project was re-categorized to B and a Resettlement Plan (RP) was prepared and disclosed on the ADB website. The Project was categorized as C for Indigenous People impacts. 4. This monitoring report covers environmental and social safeguard activities that were implemented during construction for the Yonphula airport from April to September 2015. The report has been prepared based on the following:

i) Site inspection along the entire construction site in the airport ii) Discussion with the Contractor’s Site Engineer who was also the Environmental

Focal Person iii) Discussion with the contractor’s workers on site iv) Review of documents maintained on site such as environmental clearance,

contract agreement including the EMP etc. and v) Interactions with the local people living near the airport

II. DESCRIPTION OF THE PROJECT

5. The proposed project scope entails the upgrading and improvement of the existing domestic airport at Gelephu, Yonphula and Bumthang. The location of the Yonphula airport including the other two domestic airports is provided in Figure 1. The proposed airport improvement is designed to bring the facility to a level of development to fully meet international airport safety standards and provide sufficient runway length to accept unrestricted operations of aircrafts like the Dornier 228, Beech craft B200, Pilatus PC-12 and ATR42-500 as per Airport Reference Code 2B for all three airports. The proposed project will also include institutional strengthening and capacity building to support strategic management of the aviation

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development while improving environmental management. The scope of works for improvement of the Yonphula airport including contractor details is provided in table 1.

Table1: Work items for Yonphula airport under ATCEP

No. Work Item Name of Contractor Contract Award date

Contract Completion Date

1 Runway reshaping M/S Rigsar-Penjor Joint Venture Company

April 2015 October 2016 (Expected) 2 Pavement and BC

3 Access road and car park

4 Apron extension

5 Perimeter fencing

6. The progress of works as of October 2015 was the following:

i) Installation of perimeter fencing wall was 10% completed ii) 130m of retaining wall was constructed as part of the access road related works iii) Construction of the new car park has not started yet iv) Extension of the apron has not started yet v) Pavement and BC works has not started yet vi) Runway reshaping is ongoing

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Figure 1: Location of the three Domestic Airports under the Projec

t

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III. INSTITUTIONAL ARRANGEMENTS

7. The Project is managed by a Project Engineer from Department of Civil Aviation (DCA) under the Ministry of Information and Communications (MOIC), RGOB. The Project Engineer also acts as the Environmental Focal Person on site on behalf of DCA. Project implementation support is provided to the DCA Project Engineer by the Construction Supervision Consultant (CSC) headed by a Team Leader (TL), an Environmental Specialist (ES) and Supervising Engineer. Contractor Engineer Mr. Tendel Wangdi was appointed as the Environmental Focal Person on behalf of the Contractor. 8. The ES under CSC team conducts site visits to the project site on a periodic basis while the contractor’s engineers and CSC Supervising Engineer are responsible for the day to day implementation of safeguards. It has been made obligatory for the contractor to submit proposed and implemented EMP reports on a monthly basis along with construction work plan. Likewise the CSC compiles the work status of the entire project and produces quarterly progress reports which include a section on implementation of the EMPs. 9. Further, construction activities are subjected to external monitoring by various parties such as Dzongkhag (district) Environment Officer, Dzongkhag Environmental Committee, Forest Official, Local Government Officials and national Environment Commission (NEC). The Dzongkhag Environment Officer who the focal person for environmental issues at Dzongkhag level, monitors the project on regular basis.

IV. STATUS OF COMPLIANCE

A. Compliance with the Terms and Conditions of the Environmental Clearance

No. Compliance Requirement Status

1 Any modification of the proposal shall take place only with the prior approval of the NEC

There has been no modification in proposal so far

2 Construction complies with the National Environmental Protection Act 2007, Environmental Assessment Act 2000 and its Regulation 2002, Waste Prevention and Management Act of Bhutan 2009 and its Regulation 2012, and the Water Act 2011

Construction is going on as per the mentioned laws. The site is monitored by the Dzongkhag Environmental Officer as well as the site supervisor from the design consultant firm

3 Complies with the Environmental Standards 2010

4 Construction is carried out as per the projects documents submitted for environmental clearance

Construction is as per the IEE submitted and as per the Environmental Clearance issued

5 Environmental Clearance is valid only for the construction of the domestic airport at Yongphula under Tashigang Dzongkhag

No works other than Yonphula airport construction is being carried out

6 The construction is confined within the allotted area

Construction is within the premises of the airport boundary

7 Ensure compliance to all conditions of stakeholder clearances

Construction is being carried out as per stakeholder clearances

8 Local residents, households, communities, public, private parties, and any religious, historic and ecologically importance sites are

The construction does not affect any sites of this nature. However one Yulay Namgyel chorten is required to

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No. Compliance Requirement Status

not adversely affected by the construction be shifted. Accordingly the chorten has been successfully relocated in consultation with the local community and religious monks

9 NEC is informed of any chance finds of precious metals or minerals or articles that have economic, religious or ecological significance

There are no such chance finds yet

10 Holder shall be solely responsible for any disputes

As all disputes and settlements have been made during the IEE stage, the construction phase does not envisage any dispute arising

11 Holder shall ensure that the import and use of secondhand equipments and machineries are strictly prohibited

Equipment used at the site were all found to be in good condition.

12 Construction conforms to ICAO standards, Safety Rules and Norms

Design and Safety Consultants have a Site Supervisor who monitors this

13 Felling of trees is done upon obtaining approval of Forest and Park Services

There are hardly any trees around the airport boundary. Forest permit have been obtained for the construction of access road.

14 Excavated material is dumped at pre-identified sites

Cut and fill method is being implemented at site.

15 Spillage and roll over of excavated materials is avoided

A retaining wall has been constructed around the runway to dispose the excess material.

16 The holder shall ensure that adverse visual impact of construction is minimized

There are no adverse visual effects that need to be covered

17 Safety signs are posted at strategic locations There are no strategic locations which necessitate specific warning signs. However, the Contractor was advised to erect a sign at the access to the site with the necessary information specified in the Environmental Clearance

18 Ensure that adequate safety gadgets are provided to the workers

Gum boots, helmets, and face masks have been issued to the workers. The workers were advised to use the face masks when engaged in such activities such as painting the poles for the fence

19 Adequate sanitation facility is provided to the workers

There are four toilets at the workers camp which is on the construction site. The camp has adequate water for both cooking and washing as it is connected to the municipal water source as well as local source. The workers use the local source for washing and bathing while the

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No. Compliance Requirement Status

municipal source is used for cooking. The workers’ camp was clean and well provided for with rice cookers and water boilers. Appliances for heating water were also available for the workers

20 Ensure that first Aid kit is available at site First Aid kit was seen to be available at the site. The site is very close to the Yongphula BHU and other than treating simple cuts and wounds at site, workers are taken to the hospital for any other complications

21 Erect a sign board at the entry to the airport Implemented

22 Copy of the Environmental Clearance is available at the worksite

Copy of the EC was available with the Contractor

B. Compliance with Section 8: Particular Conditions of Contract Conditions

No. Compliance Requirement Status

1 Environment: The Contractor shall ensure that the preparation, design, construction, implementation, operation and decommissioning of the Project and all Project facilities comply with (a) all applicable laws and regulations of the Employer relating to environment, health and safety

Construction of the Yonphula airport is in compliance with the National Environmental Protection Act 2007, Environmental Assessment Act 2000 and its Regulation 2002, Waste Prevention and Management Act of Bhutan 2009 and its Regulation 2012, and the Water Act 2011, the Labour and Employment Act 2007 Construction works are following the conditions stated in the Environmental Clearance

2 (b) the Environmental Safeguards; and

3 c) all measures and requirements set forth in the IEE, the EMP, and any corrective or preventive actions set forth in the Safeguards Monitoring Report

4 Land Acquisition and involuntary Resettlement of Indigenous Peoples: The Contractor shall ensure that the Project does not have any Indigenous Peoples Safeguards and Involuntary Resettlement Safeguards impacts. In the event that the Project does not have any such impact, the Contractor shall take all steps required to ensure that the project complies with the applicable laws and regulations of the Employer and with ADB’s Safeguard Policy Statement

There are no pending issues related to land acquisition and involuntary resettlement

5 Human and Financial Resources to Implement Safeguards Requirements: The Contractor shall make available necessary budgetary and human resources to

The Contractor was made aware that he is responsible for implementing provisions of the EMP, the Environmental Clearance etc. at his

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No. Compliance Requirement Status

fully implement the EMP, any resettlement plan and any indigenous peoples’ plan

own expense. A point to note here is that for future contracts, explicit attempts must be made to explain to bidders that the EMP of the IEE is part of the Contract Document and has implications on the Contract amount. This should be stated in the Bidding Documents. For project which have a massive EMP, in terms of financial costs, it would become a problem, if Bidders do not consider EMP costs in their tenders.

6 Safeguards Monitoring and Reporting: The Contractor shall provide the Employer with a written notice of any unanticipated environmental, resettlement or indigenous peoples risks or impacts that arise during construction, implementation or operation of the Project that were not considered in the IEE, the EMP, any resettlement plan and any indigenous peoples’ plan

Contractor has been advised on this. So far no unanticipated impacts have been experienced.

5 Adequately record the condition of roads, agricultural land and other infrastructure prior to starting to transport materials and construction; and

The Yulay Namgyal Chorten Stupa was successfully relocated. DOAT has still not decided whether the Yonphula pond will be included within the airport’s boundaries. Should the pond be within the airport’s perimeter, DOAT must grant access to neighboring community members to conduct their yearly ritual. Contractor was advised to reinstate the foot path around Yongphula airport. A water supply tank falling within the airport boundary will need to be relocated soon. Water supply pipes that were affected by the project have been restored (see picture 9)

6 Reinstate pathways, other local infrastructure, and agricultural land to at least their pre-project condition upon the completion of construction

7 The Contractor shall Comply with all applicable labour laws and regulations, shall not allow employment of child labour for construction and maintenance activities, encourage the employment of the

Is in compliance with the Labour and Employment Act 2007. There are approximately 36 male, Indian 11 Bhutanese laborers at the site. Proper camp has been constructed with

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No. Compliance Requirement Status

poor, particularly women, and provide appropriate facilities for women and children in construction campsites

adequate sanitation and other facilities to make the life of the workers comfortable. The workers were asked if they had any problems and they said that they were happy.

8 Ensure that people directly affected by the Project are given priority to be employed by the Project

There are very few locals interested in jobs at the construction site. The Indian workers have been working with the contractor.

9 Not differentiate wages between men and women for work of equal value

There are only Indian male workers at the construction site as recruitment of female foreign workers are not permitted. However, if locals are employed, there is no differentiation in wages

10 Health: The Contractor shall at all times take all reasonable precautions to maintain the health and safety of the Contractor’s Personnel and to provide a safe work environment

First Aid kits were made available at the construction site office. The site is very close to the Yongphula Basic Health Unit (BHU) and other than treating simple cuts and wounds at site, workers are taken to the BHU for any other complications.

11 The Contractor shall conduct health and safety programs for workers employed under the Project, and shall include information on the trafficking of women and the risk of sexually transmitted diseases, including HIV/AIDs in such programs

The contractor has been advise to conduct a health awareness campaign on HIV/AIDS as soon as possible.

C. Compliance with the EMP

No. Compliance Requirement Status

1 Construction material and its transportation

Contractor is in the process of identifying a quarry. Necessary requirements will be followed

2 Potential slope erosion will be mitigated by designing slope erosion controls such as benching, retaining and breast walls, and bioengineering (plantation of locally available plant species) for Yongphula airport

Retaining wall was under construction during the reporting period. However bio-engineering is yet to be done on the slopes.

3 Environmental friendly quarrying to be carried out through benching and controlled blasting will be implemented

Proposed quarry will be implemented as per the Environmental friendly quarrying. Contractor will follow as per the Environmental Clearance and site will be monitored by the NEC and the Dzongkhag.

4 Only required forest or vegetation clearance will be carried out

Clearing of vegetation will be carried out after obtaining the Forestry permits from the Territorial Forest Office, Tashigang. Only the

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No. Compliance Requirement Status

required trees will be cut down.

5 Regular maintenance of transport vehicles has to be carried out to reduce the exhaust fume pollution. Construction materials have to be covered during transportation to minimize dust pollution

Contractor maintains their vehicles at their Construction site only on regular basis. Right now there are three tippers and 7 excavators on site, 12 trucks, 1 roller, 1 JCB and 1 tanker. The Contractor has been made aware that construction materials have to be covered during transportation to minimize dust pollution.

6 Construction and demolition waste materials from existing structures will be segregated so that waste material could be re-used. For example, waste timber could be reused for construction of temporary labour camps

Construction works are currently ongoing. Construction and demolition waste will be taken care at a later stage.

7 Concrete waste could be used filling and leveling the ground during construction of access roads

No concrete waste is being generated

8 Excavated material will be stockpiled safely away from the streams and river beds to prevent soil erosion and ultimate water pollution.

Excavated materials were found to be eroding into the nearby lake. The contractor has been advised to clean up the lake

9 Chemical waste from the machineries will be collected and stored properly. Spent engine oil from the equipments will be sent to India for recycling and re-use

Contractor was made aware of waste generated from machineries during ES site visit and during Monthly Progress meeting.

10 The contractor will provide rubbish or dustbin to temporarily store the municipal wastes (or solid waste). The municipal waste will be transported and dumped at the municipal disposal site

A garbage pit had been dug at the workers’ camp. However, it was found that all kinds of rubbish were being thrown into it. The Contractor was been advised to make the workers use the pit for only biodegradable waste and to ask workers to collect non-biodegradables which should be transported for recycling.

11 Discharge of sediment laden construction water (e.g. from areas containing dredged spoil or pumped water from foundations) directly into surface water courses will be forbidden. The sediment laden construction water will be discharged into settling ponds or tanks prior to final discharge

The lake near the airport has been found to be filled with sediments from the construction works. The contractor has been advised to clean the lake and restore to pre-construction level.

12 Regular spraying the work area; covering trucks where the haulage of material involves transportation.

Contractor has been advised to sprinkle water within the project vicinity at least twice a day by water tanker.

13 Good maintenance of the vehicle fleet and by immediately excluding over-aged or worn out vehicles and machinery from

There are approximately 12 tippers and 7 excavators are at site. All are in good working condition.

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No. Compliance Requirement Status

the construction site

14 In addition air quality will be monitored throughout construction phase. Parameters to be measured are dust, PM10 (Suspended particulate), smoke of asphalt plant, Nox and Sox

In the absence of expertise and equipment under the project NEC has been requested to conduct the tests when they go for their compliance monitoring.

15 The operation of the asphalt plant is a potential source of harmful emissions, which may affect the human and the natural environment and the health of the workforce. The site of the asphalt plant will be at a minimum distance of 100m from any water course or settlement.

The contractor has been advised to consider this when setting up the asphalt plant. However, the plant used will not be very big.

16 The potential negative impact of construction noise on the workforce should be generally mitigated by providing the workforce with appropriate noise protection gear such as ear plugs and by using construction equipment that produces less noise

Noise is not a problem as only 7 excavators and 12 tippers are working at site. All of these equipment do not work at the same time and are spread out across the construction site.

17 Necessary actions such as tree marking must be carried out in accordance with the forestry rules before felling of trees for the project roads

The only vegetation on site is shrub and a few trees. For the access road, permission from the Department of Forest will be obtained if necessary.

18 The construction activities will be carried out only during day time

Construction work is going on only during the day time

19 The construction workers will be provided with adequate and appropriate shelters which are wind and rainproof

Gumboots, helmets, raincoats and face masks have been provided

20 Access to healthcare will be ensured with provision Yongphula BHU

Workers are taken to the Yongphula BHU for any serious ailments and for checkups.

10. The Department of Civil Aviation has renewed and obtained the Environmental Clearance on time from the National Environment Commission, Thimphu. Enviornment Clearance and Forest permits provided under annex I and II. 11. At Yongphula airport site, an important chorten/stupa which was built in 1959 by Lam Karpo at the behest of Late Buddhist Master Dudjom Rinpoche, has been successfully relocated to a new safe location in consultation with the Lama (monk) responsible and local community. (See picture 8) 12. Part of Yongphula airport has been used by the people of Uzorong village to travel to and from Yongphula market area for many years. Therefore the local people have requested for an alternative foot path on the eastern side outside the boundary of the airport premises. The contractor has been asked to restore this footpath before completion the end of the project construction works. In addition a water supply tank falling within the airport boundary will need to be relocated soon.

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13. It was found out that EMP implementation reports were not being submitted to the CSC and DCA by the Contractor regularly. The contractor was advised to prepared EMP reports and submit them to the CSC.

V. CONCLUSION AND RECOMMENDATIONS

14. As recommended in the IEE document, the environmental impacts for the Yongphula Airport up-gradation work are insignificant since the predicted impacts are generic, temporary, reversible and can easily be mitigated using available cost-effective methods. 15. About 200meters of perimeter fence wall have been completed and 130 meters of retaining wall have been constructed along the access road alignment. Construction of the car park and apron will be started soon. 16. Follow up actions recommended by the CSC Environmental Specialist to the contractor are:

i. The lake/pond needs to be cleaned up and kept clean at all times as required by clause 13 of the Environmental Clearance. A toe wall should be constructed in-order to prevent spillage of excavated materials into the lake

ii. DOAT needs to make a decision whether to include the lake/pond within the airport’s boundary. Should they decide to have the lake/pond within the airport, DOAT needs to grant access to lake/pond to community residents once a year to conduct their rituals.

iii. Restore the footpath used by the people of Udzorong after completion of civil works

iv. Relocate the water tank falling inside the airport boundary v. Deploy a water tanker to subside to dust within project premises and sprinkle

atleast twice a day vi. Erect a safety signboard at the access point to the construction site with details

as listed in the Environmental Clearance vii. Only biodegradable waste should be thrown into the garbage pit available at site.

All other non-biodegradables should be collected and transported for recycling viii. Keep fire extinguishers at site office and camp site ix. Implement bio-engineering works on the slope between retaining wall and

runway after completion of civil works x. Extension of the retaining wall/toe wall maybe required to retain the construction

materials at Ch. 10 meter, to avoid spillage of Construction debris to private land xi. Carry out the HIV/AIDS/STI awareness campaign within the Project premises. xii. Maintain proper records of monthly EMP implementation and submit it regularly

to CSC

12 Annex 1

ANNEX 1: ENVIRONMENTAL CLEARANCE

Annex 1 13

14 Annex 1

Annex 2 15

ANNEX 2: FOREST PERMIT

16 Annex 3

ANNEX 3: PHOTOLOG

Picture 1: Project information board

Picture 2: Takeoff point (Access Road)

Annex 3 17

Picture 3: Construction of 130m retaining wall along the access road alignment.

Picture 4: Workers with safety outfit

18 Annex 3

Picture 5: Labour’s camp at Yongphula

Picture 6: Excavation work on hill side

Annex 3 19

Picture 7: Monthly Progress Meeting at Yongphula

Picture 8: New Chorten at new location

20 Annex 3

Picture 9: Restoration of water pipeline at Construction site.

Picture 10: Contractor’s equipments at Construction site

Annex 3 21

Picture 11: First Aid Kit box at Contractors site office