Safeguards Monitoring Report

Annual Report January 2015

BHU: Air Transport Connectivity Enhancement Project Gelephu Airport

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

and the Asian Development Bank.

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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 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 ...................................................................................................................... 9

Annex 1: Environmental clearances issues for the Gelephu airport construction ....................... 10

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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 the Gelephu airport was issued on April 25, 2013 with a validity date of April 24, 2015 by the National Environment Commission (NEC). 3. Due to the limited social and resettlement impacts the project 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. Hence it 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 Gelephu airport from January to December 2014. 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 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 Gelephu 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 development while improving environmental management. The scope of works for improvement of the Gelephu airport including contractor details is provided in table 1. As of preparing this

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report construction works for the first two item have been completed and construction works for the third item is still ongoing.

Table1: Work items for Gelephu airport under ATCEP

No. Work Item Name of Contractor Contract Award date

Contract Completion Date

1 Construction of Perimeter fence

M/S Jamyang Construction (Pkg I) M/S Yeshay T Denkar Construction (Pkg II)

February 2013 December 2013

2 Runway drainage system; Flood protection structure

M/S Penjor Construction Pvt. Ltd

August 2013 March 2014

3 Construction of Passenger Terminal

M/S Dee Gee Construction

September 2014 April 2015

6. Gelephu airport at Located at Bhur (Samteling) and Gelephu Geogs in Sarpang district in southern Bhutan. It is located about 3 km from Gelephu and 30 km from Sarpang district head quarter. The Indo Bhutan border is located within 1 km. Gelephu town is the closest market place, which is located near Indo-Bhutan boarder (Datghari of Assam state of India). The airport is some 270 km from Guwahati (State capital of Assam) and about 260 km from Thimphu, the capital of Bhutan.

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

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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. An EFP was appointed under M/S Penjor Construction Pvt. Ltd and M/S Dee Gee Construction. 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 includes 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

No modification has taken place during the reporting period

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 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 Gelephu under Sarpang Dzongkhag.

EC issued by NEC is only for Gelephu airport

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 only

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

Few household has been affected but compensated well as per RGoB Rules and Regulations.

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No. Compliance Requirement Status

not adversely affected by the construction

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

No such discoveries made during the reporting period

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

Forest permits have been obtained.

14 Excavated material is dumped at pre-identified sites

Cut and fill method has been implemented at site.

15 Spillage and roll over of excavated materials is avoided

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 were no adverse visual effects that needed 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 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 made available at the site.

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No. Compliance Requirement Status

21 Erect a sign board at the entry to the airport Sign board has been erected

22 Copy of the Environmental Clearance is available at the worksite

Copy of the EC was available with the Contractor during the reporting period

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

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 The construction is in compliance and following the conditions stated in the Environmental Clearance

2 (b) the Environmental Safeguards;

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

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

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 is aware of this requirement. So far there have been no unanticipated impacts

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No. Compliance Requirement Status

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

There was no damage to agricultural land near the project area and roads used for transporting construction material.

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

Is in compliance with the Labour and Employment Act 2007. Proper camp was found to be constructed with adequate sanitation. Workers interviewed during site inspections seemed to be 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. Hence, 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 found to be available at the construction site office. The site is very close to the Gelephu Hospital and other than treating simple cuts and wounds at site, workers are taken to the hospital for any other complications, The company Bolero pickup is available at all times to transport workers to hospital etc. if needed.

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 doctor from the Gelephu hospital was invited to talk to the construction workers on on HIV/AIDS and sexually transmitted diseases.

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C. Compliance with the EMP

No. Compliance Requirement Status

1 Construction material and its transportation River bank boulders have been used and transportation will be arranged accordingly.

3 Only required forest or vegetation clearance will be carried out

Clearing of vegetation was carried out after obtaining Forestry permits from the Territorial Forest Office, Sarpang.

4 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 on a regular basis. Since some vehicles were found to move without a proper cover, the Contractor was instructed to have trucks carrying construction materials to be covered to minimize dust pollution.

5 Construction and demolition of 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 camp sites are still being used for the workers working on the passenger terminal building

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

No concrete waste was generated

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

Excavated materials is being stockpiled in the runway, far from the riverside

8 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 Monthly Progress meeting.

9 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 has been dug at the workers’ camp.

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

No sediment laden construction water was produced from the construction works

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

This was found to be lacking during site inspections in September 2015. The contractor was advised to sprinkle water within the project vicinity at least twice a day by water tanker.

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No. Compliance Requirement Status

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

All tippers and excavators on are in good working condition.

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

Due to absence of expertise and equipment in 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.

Asphalt plant was found to be at least 100m away from nearby streams.

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 was not a problem as the number of excavators and tippers working on site were few and spread out across the airport area. Moreover there are no big communities located next to the airport.

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

Was carried out

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

Was complied

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

Gumboots, helmets, raincoats and face masks were found to be provided

20 Access to healthcare will be ensured with provision Gelephu hospital.

Workers were taken to the Gelephu Hospital for any serious ailments and for checkups etc.

V. CONCLUSION

10. Overall mitigation measures given in the EMP are being implemented satisfactorily. The resettlement issue of land acquisition and impact on one household has been resolved. 11. The CSC Environmental Specialist has highlighted the importance of using water tank to control dust especially during the dry winter season within project vicinity and covering trucks transporting construction material. Monitoring of air quality in the project area is dependent on the availability of officials from NEC. 12. Other than the above minor issues, no other safeguards issues were found during the reporting period.

10 Annex 1

ANNEX 1: ENVIRONMENTAL CLEARANCES ISSUES FOR THE GELEPHU AIRPORT CONSTRUCTION

Annex 1 11