Environmental and Social Assessment and Management Framework

forBhutan Sustainable Financing for

Biodiversity Conservation and Natural Resources Management

Bhutan Trust Fund for Environmental Conservation

March 2013

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Table of contents

ACRONYMS ....................................................................................................................................... III

BHUTANESE TERMS ...................................................................................................................... IV

EXECUTIVE SUMMARY ................................................................................................................... V

CHAPTER 1 – INTRODUCTION ..................................................................................................... 1

1.1 OBJECTIVE OF THE ASSESSMENT AND MANAGEMENT FRAMEWORK........................................11.2 METHODOLOGY OF THE STUDY..................................................................................................2

CHAPTER 2 – BTFEC’S GRANT PROGRAM ................................................................................ 3

2.1 OBJECTIVES................................................................................................................................. 32.2 COVERAGE................................................................................................................................... 32.3 STRATEGIC PRIORITIES AND ACTIVITIES....................................................................................32.4 CURRENT PRACTICES OF INTEGRATING ENVIRONMENTAL AND SOCIAL CONCERNS..................4

CHAPTER 3 – SUSTAINABLE FINANCING FOR BIODIVERSITY CONSERVATION AND NATURAL RESOURCES MANAGEMENT PROJECT ................................................................... 5

3.1 PROJECT AREA PROFILE............................................................................................................ 53.1.1 LOCATION.................................................................................................................................................. 53.1.2 OBJECTIVE..................................................................................................................................................63.1.3 PROJECT COMPONENTS...........................................................................................................................63.2 DESCRIPTION OF PROJECT AREA ENVIRONMENT..................................................................103.2.1 COUNTRY OVERVIEW............................................................................................................................103.2.2 PROJECT AREA ENVIRONMENT OVERVIEW......................................................................................113.2.3 PROFILE OF THE PROJECT AREA..........................................................................................................13

CHAPTER 4 – ENVIRONMENTAL AND SOCIAL ASSESSMENT ........................................... 20

4.1 EXISTING PRESSURES.............................................................................................................. 204.1.1 ENVIRONMENTAL PRESSURES..............................................................................................................204.1.2 SOCIAL PRESSURES................................................................................................................................204.2 POTENTIAL ENVIRONMENTAL AND SOCIAL IMPACTS OF THE BTFEC OVERALL GRANT PROGRAM AND THE PROJECT..............................................................................................................214.2.1 OVERALL IMPACTS......................................................................................................................................214.2.2 IMPACTS OF INFRASTRUCTURE WORKS..................................................................................................234.2.4 IMPACTS ON NATURAL HABITATS...........................................................................................................254.2.5 IMPACTS DUE TO CHEMICAL PESTICIDE USE..........................................................................................254.3 ENVIRONMENTAL POLICY, REGULATIONS AND INSTITUTIONS..............................................254.3.1 RGOB’S POLICIES, REGULATIONS AND GUIDELINES.......................................................................254.3.2 WB SAFEGUARDS POLICIES APPLICABLE TO THE PROJECT...........................................................284.3.3 INSTITUTIONS AND ENVIRONMENTAL AND SOCIAL MANAGEMENT CAPACITY.............................31

CHAPTER 5 – SOCIAL AND ENVIRONMENTAL MANAGEMENT FRAMEWORK ........... 35

5.1 NEGATIVE LIST OF ACTIVITIES............................................................................................... 355.2 ENVIRONMENTAL AND SOCIAL SAFEGUARDS PROCESSING STEPS.........................................365.2.2 SOCIAL AND ENVIRONMENTAL SCREENING AND ASSESSMENT......................................................48

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5.2.3 ENVIRONMENTAL AND SOCIAL RECOMMENDATIONS AND PROJECT DPR..................................485.2.4 ENVIRONMENTAL CLEARANCE (EC) AND SOCIAL CLEARANCES...................................................495.2.5 SOCIAL MANAGEMENT PLAN (RESETTLEMENT FRAMEWORK).....................................................495.2.6 SITE-ENVIRONMENTAL MANAGEMENT PLAN...................................................................................505.2.7 COMPLIANCE AND FINAL MONITORING...............................................................................................505.3 CONSULTATIONS AND GRIEVANCE ADDRESSING....................................................................515.4 ENVIRONMENTAL AND SOCIAL MANAGEMENT COST.............................................................525.5 SPECIFIC CONSIDERATIONS ON NATURAL HABITATS, FORESTRY, PEST MANAGEMENT AND PHYSICAL CULTURAL RESOURCES......................................................................................................525.5.1 NATURAL HABITATS..............................................................................................................................525.5.2 FORESTRY................................................................................................................................................ 525.5.3 PEST MANAGEMENT..............................................................................................................................535.5.4 PHYSICAL CULTURAL RESOURCES.......................................................................................................57

CHAPTER 6 – INSTITUTIONAL ARRANGEMENTS AND CAPACITY ................................. 58

ANNEX 1. LIST OF OFFICIALS AND STAKEHOLDERS ......................................................... 61

ANNEX 2. SUMMARY OF CONSULTATION ............................................................................. 70

ANNEX 3. PROJECT AREA GEWOG MAP ................................................................................. 82

ANNEX 4. NATIONAL POLICIES AND ACTS ........................................................................... 83

ANNEX 5. PERMISSIBLE PESTICIDES LIST TO BHUTAN .................................................... 94

ANNEX 6. ENVIRONMENTAL CLEARANCE REQUIREMENTS ........................................... 95

ANNEX 7. SAMPLE CHECKLIST FOR ENVIRONMENTAL RISK IDENTIFICATION AND ANALYSIS ......................................................................................................................................... 98

ANNEX 8. SAMPLE SOCIAL SCREENING FORMAT ................................................................ 99

ANNEX 9. RECOMMENDED FORMAT FOR A PEST MANAGEMENT PLAN ................... 102

ANNEX 10. PCR CHANCE FIND PROCEDURE ....................................................................... 105

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Acronyms

BTFEC Bhutan Trust Fund for Environmental ConservationBMS Bomdeling Wildlife SanctuaryCBO Community Based OrganizationCSO Civil Society OrganizationFNCA Forest and Nature Conservation ActFYP Five-Year PlanGYT Gewog Yargay TshongduICR Implementation Completion ReportJDNP Jigme Dorji National ParkM&E Monitoring and EvaluationMOA Ministry of AgricultureMoAF Ministry of Agriculture and ForestsMoEA Ministry of Economic AffairsMoWHS Ministry of Work and Human SettlementNBC National Biodiversity CenterNECS National Environment Commission SecretariatNGO Non-Governmental OrganizationNu NgultrumPES Payments for Environmental ServicesRECOP Regulation for the Environmental Clearance of Projects, 2002REDD+ Reducing Emission from Deforestation and Forest DegradationRGoB Royal Government of BhutanRNR Renewable Natural ResourcesSMF Social Management FrameworkUNDP United Nations Development ProgrammeWCP Wangchuck Centennial ParkWHO World Health OrganisationWWF World Wildlife Fund

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Bhutanese Terms

Chiwog Village

Chathrim Act, rules and regulations, codes of conduct

Dungkhag Sub District

Dzongdag District Administrator

Dzongkhag District

Dzongkhag Administrative block

Gup Elected head of a Dzongkhag

Gewog Block (group of villages)

Ngultrum Bhutanese currency, pegged to Indian Rupee

Sokshing Forest registered in a household’s name for collection of leaf litter for use in farmyard manure

Tsamdo Land over which a community or household has customary grazing rights

Tseri Slash and burn cultivation

Yartsa-Guenbob Cordyceps is a genus of ascomycete fungi (sac fungi)

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Executive Summary

The Royal Government of Bhutan (RGOB) through the Bhutan Trust Fund for Environmental Conservation (BTFEC) has prepared a project on Sustainable Financing for Biodiversity Conservation and Natural Resources Management with a grant from the GEF/World Bank.

The project’s objective is to improve the operational effectiveness and institutional sustainability of the Bhutan Trust Fund for Environment Conservation through (1) enhanced operational effectiveness and sustainability of the BTFEC; (2) improved conservation management of the high altitude northern areas landscape (including protected areas and associated alpine meadows, forests and agricultural ecosystems; and (3) mainstreamed conservation and sustainable forest and natural resources management approaches in policy, strategy and plans.

The proposed project will be implemented in the administrative jurisdiction of three northern protected areas namely Jigme Dorji National Park, Wangchuck Centennial Park and Bumdeling Wildlife Sanctuary. The project area would consist of 27 Gewogs in ten Dzongkhags of north western, north central and north eastern Bhutan including Paro, Thimphu, Punakha, Wangdue, Gasa, Bumthang, Trongsa, Trashi Yangtse, Mongar and Lhuntse.

An assessment of the social and environmental consequences of the proposed project was necessary to understand the risks and to identify potential ways to avoid, minimize, mitigate and manage any adverse effects that might arise. The initial assessment of the project activities have indicated that environmental and social impacts are most likely as part of the grant making under the component 2 of the project. While the individual scope of activities under grants will be small with low impacts, due to the project siting in important natural habitats and forest areas more concerted effort and due diligence will be required to ensure the project activities do not contribute towards habitat loss and degradation. In addition, the project is also focused on improving protected area management and land-use planning which on long-term may have impacts towards the local communities depending on natural resources unless strong participation and other governance principles that includes communities and other key stakeholders are integrated in the overall grant making and implementation process..

While, exact activities under the Component 2 are unknown, based on past grant making and the project design, an initial Environmental and Social Assessment has been conducted to get an understanding of the current environmental and social-economic status of the project area. As part of the assessment, consultations were held both centrally and locally and the stakeholder concerns have been incorporated as a guide during grant selection and implementation. In addition, an Environmental and Social Management Framework is developed based on field visits, interview with the local community and local governance representatives, as well as the RGOB and World Bank policy requirements.

While the project is classified as environmental category B, the overall project outcome is expected to be beneficial from environmental and social perspectives. However, the risks associated with implementation of activities inside protected areas,

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which are areas of ecological sensitivity and of high conservation value, both nationally and internationally, could be high requiring extra diligence. Past experience has shown that when protected area and forest reserve improvement/development activities which may have adverse environmental and social impacts are undertaken by responsible national agencies, the need to carry out environmental and social assessments has been overlooked. The proposed project activities will likely to have limited adverse social impacts.

One of the main findings is that there are no serious adverse environmental and social impacts due to project activities and many of the potential impacts can be easily mitigated through well-established measures and community participation. The framework has also identified a negative list eliminating activities that will impact key natural ecosystems. It was also noted that capacity building of the local institutions and local communities is essential in order to implement the projects. Further, concern of forest and land degradation in the areas and need for reforestation and afforestation programs to recuperate for better productivity has been identified.

The project would improve community livelihood conditions through development of pasture, supply of more number of breeding bulls and better breed of livestock, distribution of high yielding fodder tree seedlings, fodder grass seeds, promotion of organic farming and vegetable production, and yak product diversification. The main impact that may take place is livelihood impacts as a result of land-use changes to ensure sustainable agriculture and livestock practices. There are also concerns such as cultural disintegration and leading to loss of rural values and possible migration due to increased income from the project.

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Chapter 1 – Introduction

With the guidance of the Fourth King of Bhutan, the Bhutan Trust Fund for Environmental Conservation (BTFEC) was established in 1992 as a collaborative venture among the Royal Government of Bhutan, the United Nations Development Program and the World Wildlife Fund. From the early 1990s, the BTFEC has supported through grants in the establishment of protected area system in Bhutan, training of Bhutanese individuals, strengthening existing and launching new institutions to manage protected areas, and carrying out research to inform policy makers, environmental leaders and conservation practitioners.

The Royal Government of Bhutan (RGoB) through the Bhutan Trust Fund for Environmental Conservation (BTFEC) has initiated the process of preparing Sustainable Financing for Biodiversity Conservation and Natural Resources Management Project with a grant from the Global Environment Facility (GEF)/World Bank. The Project is based on the Conservation Management plans (2012-2017) of Wildlife Conservation Division of RGoB, BTFEC Action Plan (2011 – 2015) and BTFEC Strategic Plan (2010 – 2015).

The proposed Project will be implemented in the administrative jurisdiction of three northern protected areas namely Jigme Dorji National Park, Wangchuck Centennial Park and Bumdeling Wildlife Sanctuary. The Project area would consist of 27 Gewogs in ten Dzongkhags of north western, north central and north eastern Bhutan including Paro, Thimphu, Punakha, Wangdue, Gasa, Bumthang, Trongsa, Trashi Yangtse, Mongar and Lhuntse.

An assessment of the social and environmental consequences of the proposed Project was necessary to understand the risks associated with project activities and to identify potential ways to avoid, minimize, mitigate and manage any adverse effects that might arise due to project investments, as well as long-term activities of the BTFEC. Project envisages several small-scale community infrastructures and activities to sustain livelihoods dependent on natural resources spread far and wide in three national parks within ten different Dzongkhags. As precise locations of the potential project activities, and their exact scope are not known during preparation, an initial assessment of the current environmental and social status of the Project area, as well as a Social and Environmental Management Framework (SEMF) as a guide to be used during implementation, when project/activity location and scope will be known has been developed.

1.1 Objective of the Assessment and Management Framework

The overall objective of the current assignment is to conduct an Environmental and Social Assessment (ESA) and prepare a Social and Environment Management Framework (SEMF) for the proposed project. Following are the specific objectives:

Conduct a combined sectoral social and environmental analysis of BTFEC’s overall grant program and not excluding grant activities proposed under component 2;

Develop a combined Social and Environment Management Framework and procedures that could be suitably applied to grant activities likely to be

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proposed as part of this project as well as be applied more broadly to the range of activities in BTFEC’s national conservation grant programs

1.2 Methodology of the Study

The assessment and the social and environmental management framework present in this report are based on analysis of information collected through literature review, consultative meetings/ interviews and field visits. Documents reviewed include various policies, legislations, regulations, guidelines and relevant documents of RGOB and the World Bank Safeguard Policies. In addition, other relevant documents such as the conservation management plans of operational protected areas, 10th Five-Year Plan (FYP) Main Document, Wildlife Conservation Division, and Conservation Management Plan – 2012 – 2017 were reviewed.

Consultative meetings and interviews were held with a number of institutions and inidviduals, ranging from officials of government agencies at the central level, Dzongkhag Tshogdu (GT) members, and local villagers in the field. Field visits included visits to Nubi in Trongsa, Gangzur in Lhuntse, Mangme of Sephu and gewog clerk of Tang in Bumthang. During the field consultations, the consultant was assisted by park officials and RNR agents of various gewogs visited during the course of field work. The consultations were held in two forms: (1) group discussions with cross-section of men and women, including some GYT members; and, (2), interviews of individual households, particularly those considered as vulnerable. The vulnerable households were determined in terms of low cash income, landlessness or small land holdings, recurrent food deficit, high proportion of dependents (young children, old parents, disable members), women headed households due to death/illness of husband or divorce. In each field consultation site/gewog, either Tsogpas or Mangme were requested to identify vulnerable households. See Annex 1 (List of officials and stakeholders met), and Annex 2 (Summary of Consultations).

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Chapter 2 – BTFEC’s Grant Program

This chapter provides the BTFEC grant program in order to provide the context of the existing system which will be supported through the proposed Project.

2.1 Objectives

The main objective of BTFEC’s grant program is aimed at improving the operational effectiveness and sustainability of the institute and to achieve the following three outcomes:

1. Enhanced operational effectiveness and sustainability of the BTFEC2. Improved conservation management of the high altitude northern areas

landscape (including protected areas and associated alpine meadows, forests and agricultural ecosystems)

3. Mainstreamed conservation and sustainable forest and natural resources management approaches in policy, strategy and plans.

2.2 Coverage

The programs which the Trust Fund was mandated to support aligned clearly with the national priorities and the themes for BTFEC support were as following:

(a) Training professionals in ecology, natural resources, management, forestry and environment;

(b) Assessing biological resources and develop an ecological information base; (c) Developing and implementing protected area management plans; (d) Public awareness and environmental education in schools; (e) Institutional support to related sectors/agencies; and(f) Projects integrating conservation and development.

2.3 Strategic priorities and activities

The first Strategic Plan was adopted as the guiding document of BTFEC activities in 1997. The plan had a twenty-year horizon that envisioned the BTFEC becoming a contributor across the entire green sector by the end of that period. Fine-tuning of the plan was delegated to the Technical Advisory Panel, which was mandated to develop five-year plans that would achieve the broad goals and to review and evaluate grants consistent with the medium-term plans the Board would approve.

The long-term goals for the BTFEC included developing a fully functioning protected areas system comprised of nine areas, catalyzing funding to build a conservation information management system and helping to incorporate environmental awareness and education into the education system. At the time the first Strategic Plan was developed, experience with the first five years of grant-making had shown that the capacity of grantees to prepare proposals and implement activities was inadequate and that the institutions required to manage all aspects of conservation were weak. The BTFEC thus concluded that its priority objective was to strengthen institutions to

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promote effective management of conservation programs and build capacity of its grantees to implement field activities1.

2.4 Current practices of integrating environmental and social concerns

In terms of achievement, it has been concluded that the 92 grants valued at Nu 450 million (US$ 10 million) approved through 2009/2010 were substantively consistent with the broad goals of the Strategic Plan, as well as with the program and funding objectives that determined the areas of grant support. The long-term strategy itself was implemented with very positive outlook, but not fully completed and require further improvements to ensure sustainability.

The current practices of integrating environment and social concerns to the grant program are at its infant stage, although all efforts are made to follow existing RGOB’s environmental policy. With the support of the proposed Project, BTFEC intends to incorporate and improve the international environmental and social practices that are also in line with national requirements as part of operationalizing of the grant program. Hence the tools proposed as part of this framework will be piloted on the ground for their practicality and effectiveness and will be included as part of the BTFEC’s Operations Manual that will be improved during the project implementation.

1 Mikitin, K. Recommendations for Improving Operational Effectiveness and Sustainability, July 2012

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Chapter 3 – Sustainable Financing for Biodiversity Conservation and Natural Resources Management Project

The proposed project is consistent with the GEF strategy under GEF 5 “Improve Sustainability of Protected Area Systems” which supports the objectives of improving the sustainability of the protected areas located in the high altitude northern areas (HANAS) landscape of Bhutan and improving the long term financial sustainability of these protected areas. The project will work through the existing Bhutan Trust Fund for Environmental Conservation (BTFEC) to improve its operational effectiveness, transparency and capacity to manage funds required for management of the HANAS landscape, and more importantly become an effective instrument for sustainable financing for biodiversity conservation in Bhutan as a whole.

The HANAS landscape occupies around 1,500,000 hectares consisting of three protected areas (Map 1), intervening biological corridors, agricultural lands and village settlements, alpine grazing lands and reserved forestlands. Within the HANAS landscape, the project will support efforts to expand and improve the management effectiveness of three existing protected areas and intervening forest corridors through review and update of existing management plans, zonation, monitoring of critical species, research, inventory and surveys and engagement of local communities in habitat management and community stewardship. It will also support efforts to reduce negative impacts on productive sectors and community actions, particularly outside the protected areas and support mainstreaming of biodiversity in local and sector policies and programs through targeted capacity building, documentation and dissemination of best practices, and highlight the contribution of biodiversity to ecotourism, and livestock and forest management.

The project will also support improved agriculture and sustainable land and grazing management interventions to arrest land and forest degradation and productivity losses and improve local socio-economics. Through these efforts, the project will help reduce pressure on existing forest resources, in particular the broadleaved forests through targeted interventions in protected areas, alpine meadows and agricultural lands and support good management practice in existing forests (SMF/REDD+), improve a range of service through SFM and even encourage the application of payment of ecosystem services in selected areas. The results emanating from the investments on the ground and experiences will provide a platform for generating national efforts and building capacity to further strengthen protected area and sustainable land, grazing land and forest management in the country.

3.1 Project Area Profile

3.1.1 Location

The project area would consist of 27 Gewogs in ten Dzongkhags of north western, north central and North eastern Bhutan including Paro, Thimphu, Punakha, Wangdue, Gasa, Bumthang, Trongsa, Trashi Yangtse, Mongar and Lhuntse. Map 1 below shows the project location (ten dzongkhags and 27 gewogs that will be within the 3 protected areas). The specific gewogs map of the project area is shown in Annex 3.

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Map 1. Showing the location of the project area

3.1.2 Objective

The primary objective of the Project is to improve the operational effectiveness and sustainability of BTFEC, which has a long history and experience in financing grants for conservation activities in Bhutan.

This objective would be achieved by improving conservation management of the high altitude northern areas landscape, mainstreamed conservation and sustainable forest and natural resources management approaches and in the selected three National Parks. Sustainable community grazing and land management would be improved based on set criteria. Mainstreaming of conservation and sustainable forest and natural resources management approaches would be developed through improved capacity building and development of plans and policy. Employment opportunities would result from community engagement in various activities such as non-farm income generating activities. The composition of projects would be governed by the provisions contained in the 10th Five-Year Plan (2008- 2013) and anticipated provisions under the forthcoming 11th Five-Year Plan (2013-18).

3.1.3 Project Components

The project has three main components:

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Component 1: Enhanced operational effectiveness and sustainability of the Bhutan Trust Fund for Environment Conservation

The objective of Component 1 is to support BTFEC in carrying out the update and implementation of the Strategic Plan by adopting more modern governance and business practices and ensuring the adequacy of its resources and tools going forward. With a view to its operational effectiveness, BTFEC’s Board has (will have) endorsed the following improvements: (i) increase and diversification of BTFEC Board representation; (ii) prioritization of interventions in the seven program areas of the Strategic Plan 2010-2015; (iii) preparation of a sustainable plan for the Protected Area (PA) network; (iv) creation of a system to monitor the impacts of BTFEC’s grant program and institutional performance; (iv) modernization of the grant-making process towards efficiency, equity and transparency; (v) review of options for BTFEC’s future investment management.

To ensure that BTFEC has the resources and tools for implementing change, its Board agreed on the following changes: (i) recruitment of additional staff to share the numerous operational responsibilities and tasks; (ii) engagement of short-term consultants for legal advice on changes to BTFEC’s structure, preparation of a sustainable financing plan for the PA system and introduction of modern operating systems and processes; and (iii) development of new business lines to expand BTFEC’s management of funding for conservation initiatives.

Specifically, Component 1 will finance training, technical assistance, equipment and data management systems and limited piloting to implement the following activities.

Updating and modernizing the Royal Charter to align it with good practices on non-profit governance

Supplementing the Royal Charter with bylaws to codify the Board’s rules and practices

Prioritizing grant selection on the basis of needs, risks and opportunities

Modernizing grant-making through improvements to the grant award process, grant documentation, Monitoring and Evaluation of the grant portfolio and dissemination of experiences and lessons of grant implementation

Updating the Operations Manual to clarify or simplify procedures for grant selection, grant-making and other areas of program management as required

Conducting a review of options for future arrangements on managing investments

Improving institutional and staff capacity for grants and financial management through staff recruitment, training and external technical support

Developing a fund raising strategy and testing new financial instruments that will allow for the generation of non-budgetary resources for self-sustaining of conservation activities

Component 2: Improved conservation management of the high altitude northern areas landscape (including protected areas and associated alpine meadows, forests and agricultural ecosystems)

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This component aims to demonstrate BTFEC’s conservation outcomes and enhance its grant-making operations. To that end, BTFEC will finance grants – on a competitive basis – that would improve conservation management in the high altitude northern area ecosystems of Bhutan. The conservation grants for the targeted areas will be processed and approved through BTFEC’s grant management system. In accordance with BTFEC’s grant award process, the maximum grant amount is US$300,000 and grant proposals are considered by BTFEC’s Board twice a year.

Two types of grants will be provided under Component 2. The first type will support the testing and implementation of appropriate management strategies and proactive plans to anticipate and address threats to the protected area and biodiversity corridor complexes in HANAS. This would enable the conservation of broadleaf forests and other ecosystems within HANAS and help maintain their ecological integrity and the economic and ecological services they support. The activities that would be supported would include: (i) review and update of existing management plans for protected areas and zoning and enforcement of land-use regulations; (ii) monitoring of species of special concern, especially tigers and other charismatic species; (iii) research on critical species; (iv) engagement of local communities in habitat management and community stewardship and improved livelihoods and incomes; and (v) improved staff training and capacity for conservation. Hence, the grants would finance expert services (including community mobilization), training, workshops and equipment.

The second type of grants will support a range of community activities that aim to strengthen the adoption of: (i) sustainable agricultural land use and grazing management practices; (ii) co-management of forests and alpine meadows; and (iii) community-based ecotourism and value addition products. Grants of this type would finance goods, small works, community mobilization and training as well as other consultancies.

As part of this this component, the BTFEC is targeting to bring at least three protected areas covering 1,000,000 hectares of forested land under improved management and protection to increase/stabilize the population of selected key floral and faunal species. These would include the following activities:

Review and update of existing management plans for protected areas Zoning and enforcement of land-use regulations; Monitoring of species of special concern, especially tigers and other

charismatic species; research on critical species; Engagement of local communities in habitat management and community

stewardship and improved socio-economics and incomes; and Improved staff training and capacity for conservation.

This component is also aiming to pilot rangeland (alpine meadow) co-management with herders through improved management planning, increase productivity for domestic livestock by re-seeding degraded natural rangeland with native grass species and developing improved pasture on private/government lease land (on a limited scale) in the vicinity of permanent village for better livestock management, rotational grazing, breed improvement, productive development and value addition. At least 2,500 hectares of alpine meadows to bring under sustainable grazing management

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practice and reduce impact on adjacent forests areas with the involvement of high altitude local community living in the HANAS areas.

The grants will also support a range of community activities to strengthen the adoption of sustainable co-management of forests and agricultural lands in non-core wildlife habitats to provide improved and diversified agricultural and forests products and incomes to local communities and engage them as conservation stewards. This would be achieved through biophysical and socio-economic mapping to identify causes and incidences of land degradation, identification of ‘hot spots’ of land vulnerability, community decision making and prioritization of Sustainable Land Management (SLM) practices and investments, training and implementation and community monitoring and subsequent mainstreaming of SLM practices into gewog level planning. It is expected cover at least 2500 hectares of vulnerable agricultural lands under sustainable community land management and reduce impact on adjacent forest land. The project will support regeneration of selected degenerated forest lands outside of protected areas and help improve incomes to communities from collection and marketing of non-timber forests products and community management of critical sub-watersheds to protect water sources and critical forest resources based on existing experiences of community based forestry management of the country.

Lastly, this component would enable the conservation of broadleaf forests and other ecosystems within HANAS and help maintain their ecological integrity and the economic and ecological services they support. At least 100,000 hectares of forest lands under sustainable management (reduced pressures) and provide supplementary income from community-based ecotourism and use of Non Timber Forest Products (NTFPs) with value addition.

Component 3: Mainstreamed conservation and sustainable forest and natural resources management approaches in policy, strategy and plans:

The lessons from the management of PAs and the HANAS landscape derived from the implementation of Component 2 will inform policies pertaining to key natural resource sectors, including watershed management, upland agriculture and livestock, forestry, wildlife conservation and also infrastructure development. Such learning and experience would contribute to the development and improvement of existing Natural Resources Management (NRM) guidelines and provide examples of good practices in key NRM sectors and support new models of integrating protected areas, sustainable grazing and agricultural management approaches into sector and geog (sub-district) level planning to prevent the loss and fragmentation of forests and critical habitats. It will facilitate the replication of the lessons and good practices more broadly throughout the country. The implementation of activities under this component will also be supported through BTFEC’s competitive grant-making.

At this stage of project preparation, it is envisaged that the activities under this component will include: (i) gap analysis of policies and guidelines on conservation management; (ii) high level exchange program with countries that implement high impact conservation policies; (iii) workshops for implementing agencies to share lessons and experiences; (iv) stakeholder meetings toward mainstreaming conservation and NRM into national policies; (v) local community consultations; (vi)

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dissemination of good practices, results and outcomes stemming from the implementation of the grant-funded activities.

3.2 Description of Project Area Environment

3.2.1 Country Overview

Bhutan is internationally reputed for its well-preserved natural environment. Stable political leadership, low population pressure, cautious and environmentally sound development policies have delivered the country into the 21st century with much of its biodiversity and natural environment intact. Land use surveys completed by the MoA in 1995 revealed that a good 64.4 per cent of the country was under forest cover (72.5 per cent when scrub forest is included).

Land use in Bhutan is predominantly forests (72.5%) and agriculture (7.7%). The pasture and alpine meadows cover 3.9% of land. From 1958 to 2000, there was an increasing trend in the major land uses - forestry, agriculture and pastures. Shifting cultivation, although declining, still forms an important land use within the arable agriculture. A significant proportion, i.e. 2.4% of the total area is under landslips and erosion, which reflects the fragility of the mountain areas. Snow/glacier and rock outcrops combined constitute about 12.5% of the land area. Settlement accounts only for 0.1% but it is fast growing due to urbanization.

The country’s extreme altitudinal variation has created a corresponding range of climatic conditions varying from hot and humid tropical/ subtropical conditions in the southern foothills to cold and dry tundric conditions in the northern mountains. This is further modified by latitude, precipitation, slope gradient, and exposure to sunlight and wind, giving each valley and often opposite-facing slopes a unique set of climatic conditions. As a result of the wide variation in macro and micro-climatic conditions, there is great diversity of vegetation within the country’s small Dzongkha-graphical area, which forms eleven different vegetation zones in the country. Extensive forest cover and the wide range of vegetation zones have endowed Bhutan with one of the most spectacular biodiversity in the world. Its diverse ecosystems harbor more than 5,400 species of vascular plants, 770 species of birds and 170 species of mammals. Wild fauna includes several globally threatened species. In keeping with its rich biodiversity and the need to maintain it for sustainable development, the country has designated a vast protected area system – a network of four national parks, four wildlife sanctuaries, and a strict nature reserve (see Map 2). The system, together with the connecting biological corridors, occupies more than 35 per cent of the country’s area and encompasses representative examples of all major ecosystems found in the country – from subtropical forests and grasslands in the south to alpine scrubland and meadows in the north – making Bhutan one of the most comprehensive and robust national parks management in the world.

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Map 2. Protected areas and biological corridor of Bhutan

3.2.2 Project Area Environment Overview

3.2.2.1 Climate, Water and Hydrology

Project area climate varies with the altitudes and covers an area approximately 16,982.51 square kilometer (1,698,251 ha). The climate is temperate in the middle altitude (between 1800m to 3500m), alpine in the north or higher altitude (more than 3500 m). The project activities would be implemented mainly in the temperate areas. Average annual rainfall in the project area ranges widely. The rain fall is less than 750 mm in most parts of project areas, i.e. northern parts of the ten Dzongkhags (NSB 2009). The rainfall is affected by monsoons. Project area experiences dry and cold winter months (December through February) and almost no precipitation until March. The main rainfall months are June through September. The summer monsoon (June through September) brings heavy rains, high humidity, flash floods and landslides. The temperatures in the project area also vary according to elevation. The valleys and hills are warm and rainy in summer and cold in winter, with a pleasant spring and autumn. The great Himalayan range is snow-capped throughout and severely cold in winter.

The three project areas are the main source and catchment area of the major rivers of Bhutan. The major rivers that run through the project area are Wang Chhu, Mangde Chhu, Chamkhar Chhu, Puna Tsang Chhu (or Sunkosh), Kuri Chu and Kulong chu. These rivers offer good potential for hydropower development, and are considered nationally important. Besides, these bigger rivers, there are numerous local streams and springs which are used by local people for drinking, irrigation and other purposes such as indigenous water mills, micro-hydropower schemes, etc.

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3.2.2.2 Topography and Geology

Most part of the project area is characterized by rugged and mountainous terrain, with river valleys. The project area elevation varies from 1500 m to 6450 m. The project area is under protected area and has dense forest cover with few shrub and grassland in the alpine regions and snow peaks in the high mountains. There are seven different types of vegetation zones in the project area ranging from chirpine forest and mixed conifers forests to alpine scrubs2. Glaciers and moraines are common features of these peaks.

The Tethyan Belt covers portions of Northern Higher Himalaya Range, i.e. project area, Crystalline Belt of the central and eastern part of Bhutan Himalaya. It consists of various rocks information and is represented by sedimentary rocks (Pre-Cambrian to Cretaceous) intruded by Tertiary granites. The main rock types of this belt are shale, phyllite, slate, calearous phyllite, quartzite and limestone with intrusive granite.

3.2.2.3 Agricultural area and agricultural practices

The total area of the project is 10,750 square kilometers (1,075,000 ha). Agriculture has a dominant role in the socio-economics of the communities residing in this area. However agricultural land is limited. Agricultural land in project area covers less than 140 square kilometer (140,000 ha) or 2.09% of the total area.

Agriculture practice in the project area is largely traditional, manual and subsistence. Use of chemical fertilizer and pesticide is negligible or none. Depredation of crops by wildlife such as wild boars, Himalayan Black Bears, monkeys, porcupines and rodents is a problem commonly complained by the local farmers. Depending on the availability of water and nature of land, farmers practice wetland (irrigated) and dry-land (rain-fed) agriculture.

Livestock is part and parcel of traditional agriculture system. Forest and livestock provide organic materials needed for land fertility. Forest/vegetation covers are also important for regulating the availability of water for agricultural purpose. Agriculture development is hampered due to lack of water irrigation channels, rough terrain, poor soil quality and limited number of arable lands.

3.2.2.4 Physical Cultural Resources

Bhutan is very rich in physical and cultural sites. At the project sites in the 10 Dzongkhags, there are neither historical sites nor any religious monuments that are known or listed nationally or internationally that may be affected by any of the proposed project activities.

However, religious and/or cultural sites of local values are many in rural Bhutan. Local cultural sites of different types are found commonly in and around villages, settlements and along the travel routes. These could be temples, monastic institution, stupas, sacred natural features, dwelling place for deities, holy trees, cremation sites, etc.

2 MOAF (2010) Land Cover figures 2010

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3.2.3 Profile of the project area

3.2.3.1 Jigme Dorji National Park

Jigme Dorji National Park (JDNP) extends across 4 dzongkhags encompassing 14 gewogs. Gasa dzongkhag lies entirely within the park with Punakha, Paro and Thimphu falls partially within the Park jurisdiction. Approximately, 1,172 households with 6,956 people residing within the park administrative boundary have user rights on the natural resources for daily living. In addition, there are 1,682 households with total population of 8,702 residing adjacent to the park boundary and they are also dependent on the natural resources for their domestic needs. Although, it difficult to specify the population growth trend, discussion with local communities suggest that the local population is increasing due to improved health facilities and nutritional diets from enhanced income generation from Cordyceps3 and livestock products (consultative meeting analysis, 11-16, July, 2012, draft report).

Table 1: Number and distribution of human population in the Jigme Dorji National Park

Sl. No. Gewog Dzongkhag No. of Households Human Population1 Kawang Thimphu 40 2402 Lingzhi Thimphu 78 5643 Naro Thimphu 56 2994 Soe Thimphu 28 255

5 Goenkhame Gasa 119 708

6 Goenkhatoe Gasa 60 4407 Laya Gasa 172 1,2008 Lunana Gasa 12 142

9 Goenshari Punakha 129 60710 Kabjisa Punakha 85 42511 Toewang Punakha 105 52512 Chhubu Punakha 150 75013 Doteng Paro 30 15014 Tsento Paro 108 651

Total 1,172 6,956Source: JDNP conservation strategic plan 2012

Socio-Economic practices

Within the JDNP, the socio-economic practices of the local community can be divided into two categories based on their farming system, altitude and locality, viz. one category of the community purely dependent on the yak herding and other category largely subsists on crop production and livestock rearing.

3 The Cordyceps mushrooms have a long history as medicinal fungi. The earliest clear record is a Tibetan medical text authored by Zurkhar Nyamnyi Dorje in the 15th Century outlining the tonic propensities of Yartsa gunbu (Cordyceps sinensis renamed now toOphiocordyceps sinensis), especially as an aphrodisiac. Reference: Winkler, D. 2008. Yartsa Gunbu (Cordyceps sinensis) and the Fungal Commodification of the Rural Economy in Tibet AR. Economic Botany 63.2: 291–306.

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Of the total of 1,172 households residing within the park, 499 households, which translates to about 42.6% depends entirely on yak rearing and they are known as Bjobs (highlanders or semi-nomad) of the western Bhutan. Due to the cold climatic conditions and the short vegetative period, agricultural crops are very limited. Small-scale crop productions like barley, buckwheat, mustard, wheat, turnips, radish, etc. are practiced. The economic main stay of the nomadic communities is the yak rearing. There are about 16,222 yaks4, 1,071 horses and 105 mules supporting the socio-economic of 3,240 people living in the extremely harsh climatic conditions within JDNP. With legalization of Cordyceps collection in 2004, these communities were provided with an additional income opportunity and it has become one of the main sources of livelihoods for these people. Also, the local community of Lingshi gewog accrues substantial economic benefits from medicinal plants other than the Cordyceps as it is found abundantly in their alpine meadows. Annually, the local community harvest about 3,247 kg of medicinal herbs5 from the forest and are being supplied to Institute of Traditional Medicines in Thimphu.

The local communities residing in the lower areas of the park largely depends on crop production and livestock rearing. The rice is the major crop cultivated by the community and its annual production in 2010 was 6,092 tonnes6. Other crops grown in the areas are wheat, barley, millets, buckwheat and maize in small quantities. Alternative income generating cash crops grown by the local communities include potatoes, chilly, radish, turnip, cabbage, beans, spinach, pumpkin and cucumber. Local communities of the lower areas also produce some fruits such as apple, peach, pear, banana, plum, mandarin, and guava mostly for their self-consumption. Livestock includes 7,332 cattle, 1,089 horses and 448 mules. With improved accessibility to markets, non-traditional off farm economic activities such as wage labour, contract work, and small business are increasingly becoming important socio-economic sources. Remittances from family members in public and private sector services complement income in some households.

Land use and tenure

JDNP has the maximum concentration of villages inside the park with 14 gewogs and the total land area is 7,457.3 km² (745,730 ha) of which 0.54% is agricultural land. The agriculture is the most dominant land use, with wetland7 and dryland8 as main form of crop cultivation. About 2.6% of the households within the park do not hold any cultivable land and is mostly dominant in the Naro gewog. Following are some of the land use figures (RNR Statistics 2009, MOAF):

1,963.8 acres (795 ha) of dryland and 3,401.1 acres (1,376 ha) of wetland are operational9;

47.4% of the households own wetland, 67.9% dryland and 6.4 percent cash crop land;

4 2010, Department of Agriculture, livestock census 2010 and gewog office5 field visit to gewog office and ITM Thimphu6 Agricultural statistic report 2010, Ministry of Agriculture and Forests7 Wetland is used normally for cultivating rice.8 Dryland is used for kitchen, cash crops, etc.9 “Operational” means currently being used for cultivation

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39.3% of the households hold less than an acre10 of agricultural land, 31.6% between 1 and 3 acres, 13.8% between 3 and 5 acres, 6.7 % between 5 and 10 acres and 1.4 % more than 10 acres;

755.1 acres of wetland are owned and operated by the owner, 144.5 acres leased out, 193 acres leased in and 95.4 acres left fallow;

4,334.4 acres of dryland are owned and operated by the owner, 204.1 acres leased out, 313.3 acres leased in and 3,683.4 acres left fallow.

Natural Resources

A large number of vegetation types exist in JDNP due to the wide altitudinal and topographic variations in the Park. For the purpose of conservation planning, eight broad habitat types have been identified and mapped. These habitats also represent distinct vegetation communities ranging from Temperate Broadleaf forest to Alpine Scree. Some of the most noted animals found in the park are tigers, snow leopards, Himalayan muck deer, marmots, red panda and tragopans use a narrow range of habitat types while others such as common leopards, Himalayan black bear, sambar, wild boar, and wild dog use a wider range of habitat types. Others such as blue sheep and takin migrate between habitat types seasonally.

The total number of tree, shrub, climber and herbaceous species (including grasses and orchids) were 138, 240, 47, and 1,009 respectively. In total 1,434 species belonging to 144 families of higher plants are found within JDNP.

3.2.3.2 Wangchuck Centennial Park

In aggregate, there are 1,601 households with 10,588 people living the in the park distributed across 10 gewogs representing five different ethnic communities11. The community of Wangchuck Centennial Park (WCP) can be classified into two main groups based on the farming practice (viz. yak herding community and non-yak herding community). The yak-herding communities represent about 12% of the households, while the rest are farming (non-yak herding) communities. The latter are permanently settled either within the park or along the periphery of the park boundary, especially in the temperate forest zone.

Table 2: Number and distribution of the human population in WCP and buffer zone.Sl.No Gewog Dzongkhag Total

householdHuman population

1 Chhokhor Bumthang 637 58002 Tang Bumthang 33 1823 Lunana Gasa 141 7084 Sephu Wanduephodrang 283 13975 Dangchu Wangduephodrang 105 5786 Kazhi Wangduephodrang 44 2207 Nubi Trongsa 75 4058 Khoma Lhuntse 66 3179 Gangzur Lhuntse 55 22010 Kurtoe Lhuntse 162 761

Total 1061 1058810 1 acre = 0.4 ha approximately11 Wangchuck Centennial Park – Conservation Management Strategic Plan 2012-2017 (draft)

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Source: Wangchuck Centennial Park – Conservation Management Strategic Plan 2012-2017

Socio-Economic practices

Majority of the people living in and periphery of the WCP depends on yak herding and livestock raring. Yak herders do not possess agricultural fields, and rely entirely on yak herding. They have customary grazing rights over areas that have been grazed by their families for generations.

The farming community depends on the subsistence production from agricultural land, supplemented by livestock. The crops and cropping pattern varies among gewogs, with a variety of crops from wheat, barley, buckwheat (sweet and bitter), paddy, mustard, potato and vegetables being cultivated depending upon the altitude of the villages. Over the years, crops also have changed in response to crop raiding by animals and market forces. For instance, potato is now abundantly cultivated in Tang and forms a major source of the economy, while buckwheat and wheat, which were the primary crops about 20 years ago have been reduced due to crop raiding by bears, lack of labour to guard crops, and because of a more lucrative market for potatoes, which can be sold in Phuentsholing. This indicates that crops and cropping patterns are very much driven by number of forces, and can even respond and adapt to climate change trends.

In Chhokhor gewog, the agricultural land belongs to the threp/mein (non-yak herding) community, but in Lunana every household possess some dry land to cultivate barley, (the staple crop of the area), and vegetables. In Sephu and Chhokhor geogs, yak herders do not own any agricultural land except the land to build their house.

The community used to grow cereals in tseri12 lands; however, after the government imposed a ban on tseri cultivation by the Land Act of 2007, people no longer grow cereal crops. Some communities, especially in Lhuntse dzongkhag, are engaged in share-cropping to supplement the cereal deficiency. The division of yield between the land owners and share-croppers differ from gweog to gewog. In some villages the croppers are unwilling to undertake share-cropping because of labour and crop raiding problems. Overall, share-cropping has decreased in almost all the gewogs.

A yak dominates the livestock population in WCP. Livestock numbers per household are highest in Lunana, Chokkhor and Sephu gewogs. The yak herders have practiced transhumance for years, moving their yak herds from the higher elevations in the summer grazing areas to lower elevations in the winter, to utilize available grazing land and avoid the extreme winter conditions in higher altitudes. Yak herders graze their livestock in the WCP during summer months, between the fourth and ninth Bhutanese months. Herders have customary grazing rights within the entire WCP, except for the rocky outcrops and snow-peaked mountains. Hence they are very much dependent upon the WCP for their livelihoods vis-à-vis yak herding.

In addition to yak herding, the Cordyceps collection has become a major source of income for the communities of WCP. Maximum quantity of Cordyceps collection this year was from Chhokhor, Dangchhu, Sephu and Lunana which falls under jurisdiction

12 Tseri – Shifting Cultivation

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of WCP where 1,578 households collected a total of 131.53 kg of Cordyceps, which translated into a cash income of Nu. 97.5 million or US $ 1.3 million

Land use and tenure

10 gewogs within the WCP has a total land area of 11,145.9 square kilomers (1,114,590 ha) of which 0.82% is used as agricultural land. Most of the agricultural areas are in the buffer zone, with very little agricultural land within the park. Dry land agriculture holdings are highest in Tang gewog and lowest in Kazhi gewog. Wetland holdings are similar in all gewogs, the exception being Tang gewog, which does not have any wetland agricultural holdings. Dry land agriculture cultivation dominates the land use in all the geowgs. 1.4 % of the total households do not own any agriculture land for cultivation. Following are some of the land use figures (RNR Statistics 2009):

3,455.6 acres of dryland and 480.9 acres of wetland are operational; 45.6 % of the households owned wetland, 89.2 % dryland and 0.8 percent cash

crop land; 29.3 % of the households hold less than an acre of agricultural land, 39.9 %

between 1 and 3 acres, 13.2 % between 3 and 5 acres, 8 % between 5 and 10 acres and 9.6 % more than 10 acres;

755.1 acres of acres of wetland are owned and operated by the owner, 144.5 acres leased out, 193 acres leased in and 95.4 acres left fallow;

4,334.4 acres of dryland are owned and operated by the owner, 204.1 acres leased out, 313.3 acres leased in and 3,683.4 acres left fallow.

Natural Resources13

The park has three ecological zones with six different habit types – cool broadleaf forest, mixed conifer forest, fir forest, juniper forests, alpine meadows and scrubs and alpine scree. A total of 693 species of vascular plants belonging to 51 families are found in the WCP. There are 39 species of mammals recorded and eight of these species are IUCN listed. About 250 species of birds have been recorded in the project area.

The altitudinal range complex terrain and representation of two zoogeographical realms confer the project area with a diverse flora and fauna with several charismatic species and ecosystems which habours both tigers, snow leopard and several other rare and endangered species included in schedule 1 of the FNCA 1995.

3.2.3.3 Bumdeling Wildlife Sanctuary

Bumdeling Wildlife Sanctuary (BWS) extends across three dzongkhags. In aggregate, there are 1,005 households with 5,280 people living the in the park distributed across 3 gewogs. The average population density in three gewogs within the park is 4 people per square kilometer with maximum population density of 9 people per square kilometer located in Sherimung gewog under Mongar dzongkhag. Linguistically, all the three gewogs have different dialects of their own; however, the people of

13 Wangchuck Centennial Park – Conservation Management Strategic Plan 2012 - 2017

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Bumdeling and Khoma have similar dialects and can be understood by both the communities. Two gewogs seemed to have some ancestral connection and takes about a day walk to get into either of the gewogs. Similarly to gewogs in other two protected areas, the population seemed to be increasing annually due to improved health facilities and nutritional diets from enhanced income generation from livestock and agricultural products as popped up during the discussion with local communities in consultative meeting (consultative meeting analysis, 26 July – 1st August, 2012, draft report).

Table 3: Number and distribution of the human population in Bumdeling National Park

Sl. No. Gewog Dzongkhag No. of Households Human Population

1 Khoma Lhuntse 266 2824

2 Sherigmuhung Mongar 393 2750

3 Bumdeling Trashi Yangtse 346 2530

Total 1005 8104Source: Gewog office 2012, during the field visit

Socio-economic practices

Local communities of 3 gewogs primarily subsist on crop production and livestock rearing. The annual agricultural products including vegetable and fruits accounts to about 1,909 tonnes of which, rice is the single most cereal produce followed by maize (RNR Agricultural Statistics, 2010). Out of 3 gewogs, Khoma seems to be producing more agricultural products than other 2 gewogs. Local women of Khoma are known for their skills in weaving textiles made of silks (kishuthara), and weaving constitutes a major source of income in many households. Livestock population includes 5,200 cattle, 554 horses and 77 mules. A small portion of the community also own yak and derive their income from the yak herding. The community of Bumdeling and Khoma make additional income from Cordyceps harvesting but the income generated per household is very low compared to other Cordycpeps collecting community. A total quantity of Cordyceps collected by the community of Bumdeling this year was 1.56 kg and the revenue generated was Nu.573,270.5 or US $ 10,236.00. Like any other communities in Bhutan, off farm economic activities such as wage labour, contract work, small business are increasingly seen as an important sources of socio-economic in addition to little remittances from family members in public and private sector services to complement the income in some households.

The major agricultural crops grown in three gewogs are paddy, maize and barley with small quantity of other cereals like millet, buckwheat, and mustard. Sherimung gewog seems to be suitable for the growth of all the cereals and vegetables as indicated in the RNR Agriculture Statistics of 2010.

Land use and tenure

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Three gewogs within the BWS has a total land area of 1,084.7 square kilometers (108,470 ha) of which 0.73% are used as agricultural land. Dry land agriculture cultivation dominates the land use in all three gewogs. Only about 13% of the total agricultural land is being used as wetland by the local community of 3 gewogs. About 30 households in Sherimung gewog is either without agricultural land or with very limited acreage of land for cultivation. Following are some of the land use figures (RNR Statistics 2009):

1,523 acres of dryland and 520.90 acres of wetland are operational ; 66.8 % of the households owned wetland, 90.6 % dryland and 0.8 % cash crop

land; 25.4 % of the households hold less than an acre of agricultural land, 51.3 %

between 1 and 3 acres, 17 % between 3 and 5 acres, 5 % between 5 and 10 acres and 1.3 % more than 10 acres;

312 acres of acres of wetland are owned and operated by the owner, 62.3 acres leased out, 43.5 acres leased in and 103 acres left fallow;

922.7 acres of dryland are owned and operated by the owner, 36.1 acres leased out, 77.3 acres leased in and 486.7 acres left fallow.

Natural Resources14

Broadleaf forests dominate about one-third of the Sanctuary and the remaining is of conifer forests. Within the sanctuary and its buffer zone, four globally endangered mammals (tiger, snow leopard, red panda and capped langur) and five globally threatened birds species (Rufus necked Hornbill, Palla’s Fish Eagle, Chestnut Breasted Partridge, Black-necked Crane and Wood’s Snipe) are found.

Of the many globally vulnerable flora and fauna, there are also blue poppy and yew and Chinese caterpillar, a fungus which totally protected in Bhutan15.

14 Bomdeling Wildlife Sanctuary – Conservation Management Plan July 2001 - 200715 Bomdeling Wildlife Sanctuary – Conservation Management Plan July 2001 – 2007 (pp 3)

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Chapter 4 – Environmental and Social Assessment

4.1 Existing Pressures

4.1.1 Environmental Pressures

The country is strongly committed to ensuring a future where the natural environment is still intact. The strong political will for environmental conservation that exists in the country has translated into the policy resolution of maintaining at least 60 % of the country under forest cover at all times and the establishment of a comprehensive protected areas system encompassing more than 26 % of the country. Country has also developed wide range of policies and acts for the protection and conservation of the environment, and for environmental management. Despite such policies and efforts, pressures are mounting due to population growth, and infrastructure development.

The eastern and southern Bhutan, where population densities are high and human activities are more intense, localized deforestation and overgrazing are occurring. There is increasing demand for forest products such as fuel-wood and house-building timber. The country and the project area, given its fragile mountain terrain and ecosystem, are highly vulnerable to natural disasters mainly in the form of landslides, soil erosion, and flash floods, as well as earthquake and Glacial Lake Outburst Floods. Roadblocks due to landslides are a recurrent phenomenon during the monsoons. Every year monsoon rains cause a number of floods and landslides, causing loss of human lives and damage to infrastructures and natural resources. In recent time, farmers and grazers have continued to face human-wildlife conflicts such as crop and livestock depredation.

4.1.2 Social Pressures

Bhutan is assessed to be on track to achieve its Millennium Development Goals (MDGs). However, while the poverty rate has fallen from 36% in 2000 to 23% in 2008, the MDG mid-term report notes worsening of conditions affecting those suffering from severe poverty. Household food security is linked to low food production and weak agricultural productivity, limited access to land and other productive assets, extensive crop destruction by wild life and pests, inadequate opportunities for rural employment, poor food utilization, and weak access to road and transport infrastructure. Bhutan's mountainous terrain is a fundamental constraint to growth and rural poverty reduction. Poor road access isolates a large proportion of rural people from markets and social services, and limits their livelihood to subsistence agriculture. The RGOB and development partners have responded to this constraint by constructing more than 1,500 kilometers of farm roads and tracks since 2003. The proportion of rural people within one hour walking distance of a road head increased from 40% in 2000 to 53% in 2008. The proportion of people residing within six hours walking distance from a road has increased from 84% to 90%. Property rights are also much more equal than in most of South Asia, with women rather than men inheriting property in some areas.

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4.2 Potential Environmental and Social Impacts of the BTFEC overall grant program and the project

While the project is classified as environmental category B, the overall project outcome is expected to be overwhelmingly beneficial from environmental and social perspectives. However, the risks associated with implementation of activities inside protected areas, which are areas of ecological sensitivity and of high conservation value, both nationally and internationally, could be high requiring extra diligence. Past experience has shown that when protected area and forest reserve improvement/development activities which may have adverse environmental and social impacts are undertaken by responsible national agencies, the need to carry out environmental and social assessments has been overlooked.

The proposed project activities will likely to have limited adverse social impacts. The main impact that may take place is livelihood impacts as a result of land-use changes to ensure sustainable agriculture and livestock practices. There are also concerns such as cultural disintegration and leading to loss of rural values and possible migration due to increased income from the project.

4.2.1 Overall impacts

The Component 2 of the project, which supports the BTFEC’s grant program where activities such as promotion of improved breeds of livestock and sustainable agriculture and tourism will be financed, it is important that the program design and implementation follows a participatory and inclusive process to ensure the above impacts are managed to the level acceptable to the beneficiaries and that the most needy and vulnerable households equally benefit from the project. Therefore, the issues such as gender, social inclusion, vulnerable households and community consultation and participation need to be carefully considered in the planning and implementation process.

The preliminary analysis of project components indicated that Component 2 of the project where financing will be provided for the BTFEC grant program will likely to have environmental and social impacts, which has been summarized in Table 3.

Table 3: Component 2 activities and their environmental and social impacts

Activity Environmental and/or Social Impacts Magnitude of ImpactsReview and update of existing management plans for protected areas

Better management of protected areas HighImproved/maintained conservation status of key biodiversity

High

Zoning and enforcement of land-use regulations

Changes in land-use by communities that may have livelihood impacts

Moderate

Land use information in place that can be used to develop solutions for natural resource management issues

High

Reduced land degradation ModerateOpportunity to develop financial or legal incentives that can lead to proper land use decisions, or eliminate one-sided central planning leading to over-utilization of the land resources

High

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Improve long-term quality of the land for human use, the prevention or resolution of social conflicts related to land use, and the conservation of ecosystems of high biodiversity value

High

Monitoring of species of special concern, especially tigers and other charismatic species and research on critical species

Better understanding of conservation status of keystone species that will allow timely interventions in the face of threats

Moderate

Improved knowledge on behaviours of fauna, particularly focused on human-animal conflicts and opportunity to develop human-animal co-existence models

Moderate

Engagement of local communities in ecosystem management and community stewardship

Opportunity to embody responsible planning and management of natural resources with community participation and ownership

High

Improved status of ecosystems that can sustain conservation needs and livelihoods needs

High

Improvements in socio-economic income

Opportunity to provide improvements to basic infrastructure needs that contribute towards social development

High

Improved and sustained livelihoods to project beneficiaries that are acceptable to the community, the well-being of the environment and sustainability of natural resources

Moderate/High

Inadequate attention to environmental and social concerns related to infrastructure development activities

Low/Moderate

Improved staff training and capacity for conservation

Better management of protected areas High

Pilot rangeland (alpine meadow) co-management with herders

Improved resource management HighIncreased productivity for domestic livestock re-seeding degraded natural rangeland with native grass species and developing improved pasture on private/government lease land

High

Opportunity to pilot rotational grazing, breed improvement, productive development and value addition

High

Reduced impacts to the adjacent forest areas

High

Adoption of sustainable co-management of forests and agricultural lands in non-core wildlife habitats and engage local communities as conservation stewards

Improved and diversified agricultural and forest products

High

Improved incomes to local communities from collection and marketing of non-timber forests products

High

Improved sustainable land management practices through informed decisions that will improve protection of critical sub-watersheds and forest resources

High

Reduced impacts to the adjacent forest areas

High

Regeneration of degenerated forest lands outside of protected areas

High

Provide supplementary income Improved incomes to local communities High

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from community-based ecotourism and use of Non Timber Forest Products (NTFPs) with value addition

Over-harvesting of NTFPs LowIncreased visitation beyond the carrying capacity of the PA

Low

Physical impacts caused by tourism-related land clearing and construction, continuing tourist activities and long-term changes in local economies and ecologies.

Low

Development of tourism facilities such as accommodation, water supplies, restaurants and recreation facilities can involve sand mining, soil erosion and extensive paving

Low

Habitat degradation with air and noise pollution due to vehicles, solid waste and littering, trampling, tourism leisure activities, etc.

Moderate

Increased visitation putting pressure on animal habits and behaviors

Moderate

Improper siting can lead to land degradation and loss of wildlife habitats and deterioration of scenery

Moderate

The following sub-sections identify the possible environmental and social impacts that could arise due to project activities that are focused on community socio-economic improvement in the project areas.

4.2.2 Impacts of Infrastructure works

Environmental concerns of the project are mainly related to the infrastructure works. Wide variety of small rural infrastructure could be supported under the project; including farmers managed irrigation schemes to improve agriculture, community micro-infrastructure such as drinking water, footbridges, range offices and simple storage facilities.

Potential environmental impacts of community infrastructures such small irrigation schemes, fencing the grazing land, foot bridges, drinking water supply and simple storage facility are expected to be low/ minimal. The construction of Park Range office is also expected to be low adverse impact. The impacts will arise due to:

Improper siting of facilities Transportation corrugated galvanized iron sheets, timber, and other building

material, which maybe locally extracted. Extraction of raw material such as gravel, sand, etc. from PAs/GFRs and

degrading habitats Inappropriate disposal of soil, debris, etc. Poor site management during construction work Noise pollution associated with construction work and the resultant disturbance to

wildlife Removal plants of conservation value Spread of invasive species from vehicles and material brought into the park from

outside Burning of uprooted vegetation and spread of forest fires

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4.2.3 Impacts of Improving Productive Assets of Existing Producer Groups

The productive activities under Improving Productive Assets of Existing Producer Groups are likely to be environmentally benign as the support intends to help local community to increase productivity through improved grazing management approaches, high yield agricultural products with sustainability practices that will improve the environmental conditions and reduce threats towards natural resources. The project will be supporting Bhutan's environment-friendly agriculture policy, such as organic farming as far as possible, selecting/promoting/improving local high yield crop varieties, introducing sustainable land management practices, training and support of well-tested and already ongoing livestock support package, better/more efficient use of NTFPs and introducing sustainable harvesting methods, sustainable land uses for grazing land, and locally developed and tested measures for protecting crops from wild-life. Minor environmental concerns related to agricultural productivity activities and project approach is summarized in table below.

Table 4: Environmental and social concerns related to agricultural productivity activities

Improving Productive Assets Activity

Potential environmental concern

Project approach

Reclamation/restoration of degraded pastureland

Potential of agro-biodiversity (local species) loss in the long-run due to promotion of higher yield or disease resistant species.

The National Biodiversity Centre (NBC) has an ongoing program for conservation of agro-biodiversity and genetic resources (including maintenance of gene bank).

Restoration of degraded agricultural land - wheat and barley, vegetables (kitchen garden)

Potential of agro-biodiversity (local species) loss in the long-run due to promotion of higher yield or disease resistant species.

Higher yield and/or disease resistant variety would be selected from among the native varieties. The NBC has an ongoing program for conservation of agro-biodiversity and genetic resources (including maintenance of gene bank). Most species are already conserved. Project will coordinate with NBC as required.

Support Community Forest Groups and households for their wood and NTFPs production and value addition activities.

Increased pressure on the community forests or private forest (lingshi to ITMS)

This will emphasize improving current practice in terms of higher efficiency and value-addition and hence reducing the pressures and likely to contribute positively. As owner (Community Forest Group) is involved, therefore community participation will be high and only sustainable harvesting will be promoted.

High yielding yaks, jersey, brown swiss, pigs, poultry

Pressure on grazing land and nearby forests.

Improvement management practices will reduce the pressure on grazing lands and nearby forests.Project would support well-tested productive breeds, and training that takes into account of the health and hygiene.

Wildlife management practices (mitigation measures for crop damage by wildlife)

Adverse impacts on wildlife and people and their assets (injuries, crop damage, etc.)

The project would support measures already tested in Bhutan (developed by the Wengkhar Research Centre and the National Post Harvest Centre under the coordination of the National Plant Protection Centre). This will help in

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reducing human-wildlife conflicts. New measures that will support human-wildlife co-existence will be also promoted based on scientific information.

4.2.4 Impacts on Natural Habitats

The entire project falls under protected areas which are homes to over 693 species of vascular plants, 39 mammal species, and 250 bird species, 42 species of butterflies recorded from the parks and their buffer zones. The mammal fauna includes several iconic species such as the tiger (Panthera tigris), snow leopard (Uncia uncia), wolf (Canis lupus), Bhutan takin (Budorcas taxicolor whitei), Himalayan black bear (Ursus thibetanus), red panda (Ailurus fulgens) and other unidentified species etc. As highlighted in the introduction of the chapter, the risks associated with implementation of activities inside protected areas, which are areas of ecological sensitivity and of high conservation value would be high requiring extra diligence. All care should be taken to ensure project financed activities do not result in habitat loss and degradation.

4.2.5 Impacts due to chemical pesticide use

The project would not support purchase of chemical pesticides. RGOB’s general approach is to promote organic agriculture. Hence, the procurement, distribution and use of pesticides in Bhutan are strictly controlled. The Plant Protection Centre, a government agency under MOAF, is the only agency with authority to import, distribute, and sell pesticides. Chemical pesticides are not-available freely in the market. In the seed treatment (and RNR demonstration activities), pesticides are used by qualified and trained persons following standard FAO guidelines. High risk pesticides (including WHO Class Ia and Ib) are banned in Bhutan.

4.2.6 Impacts on physical cultural resources

Bhutan in general is rich in physical cultural resources. Cultural sites of different types are found commonly in and around villages, settlements and along the travel routes. Environmental screening and assessments should cover the possibility of any impacts and should provide adequate measures to avoid and/or mitigate adverse impacts on the physical cultural resources. Bhutan environmental law requires that permit or No-Objection Certificate for any activity within protected areas or a cultural site or sacred landscape. In addition, local bodies are empowered and mandated for the protection of cultural properties including temples, monastic institution and their religious treasures, stupas, sacred natural features, dwelling place for deities, etc.

4.3 Environmental Policy, Regulations and Institutions

4.3.1 RGOB’s Policies, Regulations and Guidelines

Bhutan has reasonably sound environmental policies and regulations. Bhutan’s environmental policies, legislation, and regulations pertaining to environmental assessment are relatively recent. The Constitution of the Kingdom of Bhutan requires RGOB to: a) protect, conserve and improve the pristine environment and safeguard

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the biodiversity of the country; (b) prevent pollution and ecological degradation; (c) secure ecologically balanced sustainable development while promoting justifiable economic and social development; and (d) ensure a safe and healthy environment; and (e) to ensure that a minimum of sixty percent of Bhutan’s total land be maintained under forest cover at all times. The country has made significant progress in specific environmental management policy and regulation development as listed below (See Annex 4 for details).

National Environment Protection Act 2007 National Forest Policy, 1974 and 2011 Land Act of Bhutan 2007 National Environmental Strategy 1999 Forest and Nature Conservation Act, 1995 Forest and Nature Conservation Rules, 2000 Environmental Assessment Act, 2000 Regulation for the Environmental Clearance of Projects, 2002 Regulation for Strategic Environmental Assessment, 2002 National Environmental Protection Act of Bhutan, 2007 Application for Environmental Clearance Guidelines Environmental Codes of Practices16 (first published in 1999 and later revised

in 2003/04) Pesticides Act of Bhutan, 2000 Biodiversity Act of Bhutan, 2003 The Water Act of Bhutan 2011

In addition to the above and in the context of decentralized environmental management, the DT and GT Chathrims 2002 are important policy instruments as they mandate the locally elected bodies to exercise authority and functions for a number of activities related to environmental management.

Bhutan also has issued environmental quality standards related to ambient water quality, industrial effluent discharge, ambient air quality, industrial emission, sewerage effluent, workplace emission, vehicle emission, and noise level limits.

In case social safeguards the following Policies and Regulations of the Royal Government of Bhutan is relevant:

The Constitution of the Kingdom of Bhutan: The mother of all legislations in the country, the Constitution of Bhutan protects the people’s property rights where a person shall not be deprived of property by acquisition or requisition, except for a public purpose and on payment of fair compensation in accordance with the provisions of the law.

The Land Act of Bhutan 2007: The primary legal instrument for land acquisition and resettlement in Bhutan is the Land Act of Bhutan 2007, which was enacted by the 87th session of the National Assembly. The Land Act of Bhutan 2007 regulates and administers the ownership and the use of land for socio-economic development and environmental well being of the country. The Land Act of Bhutan 2007 came into force on 1 January, 2008, superseding the Land Act of Bhutan 1979. Under the Act,

16 There are three ECoPs for Installation of Underground and Overhead Utilities, for storm Water Drainage System, and for Tourism Activities.

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an autonomous National Land Commission (NLC) is empowered to issue lag thram (ownership certificate) and has the authority to register land or amend change in thram. The NLC is empowered to acquire land, allot substitute land and approve compensation.

Land Rules and Regulations (2007): To support the implementation of the Land Act of Bhutan 2007, the NLC formulated Land Rules and Regulations which define the institutional functions, procedural requirements and regulatory provisions for management of national land records, land ownership entitlements and land rights, land registration, land conveyance, land acquisition and compensation, land grants, allotment of government land, and Government Reserve Forest land, cadastral survey, documentation and mapping, land conversion, land lease, easement, and annulment of land.

The Moveable cultural property act of Bhutan (2005): This Act is to conserve and protect the Movable Cultural Property of Bhutan. In case there is concern that Cultural Property owned by public Lhakhang has been lost, exchanged or sold, the Department of Culture may conduct an investigation at any time. Further, The caretakers shall conduct checks from time to time whether all Cultural Properties are in place. Similarly people living near the Lhakhang shall render help when necessary for safeguarding Cultural Properties.

The Religious Organizations Act of Bhutan (2007): This Act assists the other cultural act in providing for registration and administration of the religious organizations to protect and preserve the spiritual heritage of Bhutan.

4.3.1.1 Process of Environmental Assessment and Management

All development projects/ activities require acquiring environmental clearance (EC) from National Environmental Commission Secretariat (NECS) or Competent Authority (CA), unless an activity is exempted under the RECOP. Authority to issue an EC, if a project proponent happens also to be a designated CA, defaults to NECS for that particular activity.

EC application: The EC application needs to contain: a) No Objection Certificates (NoCs), b) Environmental Information (EI). The EI need to include the following information: i) potential adverse effects of the project on the environment, ii) compliance plan to comply with relevant guidelines and codes of practice, iii) a plan for avoiding, minimizing, or reducing impacts (management plan), and iv) environmental and other benefits of the project.

Screening and assessment: CA checks the EI and NoCs, as part of environmental screening. The screening may lead to one of three outcomes: (a) issuance of an EC; (b) requirement for further study (Environmental Assessment - EA); or (c) rejection of the application. Full EA is required if a development activity will take place in a protected area.

Public Consultation: Consultation with affected communities is expected to take place at two stages in the EA process: when the NoC is issued from the designated

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agency and during the preparation of the EA. Only the directly affected agency or people are consulted.

Compliance monitoring: The EC issuing agency is responsible for monitoring the compliance. The holder of the EC is responsible for monitoring and keeping records regularly. NECS and/or CA are mandated for annual compliance monitoring, which is announced and pre-informed. They are also empowered for unannounced or spot-checking. These are rarely practiced.

4.3.1.2 Protected Areas and Forests

The Forest and Nature Conservation Act (FNCA) and the Forest and Nature Conservation Rules (FNCR) prohibit any construction, including motor roads, buildings, fences, or any other physical structures inside a Protected Areas (PA), except with written permission or authorization from the MoAF. In the core zone of PA only activity necessary for achieving conservation objective are permitted. Certain activities, such as felling trees, waste disposal, building structures, are strictly controlled within the forests. Land clearance is not permitted (a) within 100 feet on either side of the banks or edge of rivers, streams or watercourses, which are kept as riparian reserve for conservation, and (b) land with greater than 45-degree slope.

4.3.1.3 Chemical Pesticides

Bhutan encourages the practices of organic agriculture. Hence chemical pesticides procurement/import, distribution and use are well controlled through a centralized system and are legally governed by The Pesticides Act of Bhutan (PAB), 2000. The Act has been enacted with the purpose of, among other things, ensuring that integrated pest management is pursued, limiting the use of pesticides as the last resort. Integrated Pest Management guidelines are in place and are under implementation as a part of the National Plant Protection Center’s regular program. PAB (Articles 4 to 6) stipulates strict requirements for import, sale and use of pesticides. Banned and permissible pesticide list has been included in Annex 5.

4.3.1.4 Physical Cultural Resources

Bhutan law has provisions for protection and conservation of physical cultural resources. The RECOP (section 17) requires official clearance from the Ministry of Home and Cultural Affairs for any project/ activity within 50 m distance of a cultural site or sacred landscapes. The DT Chathrim 2002 mandates the DT to adopt and enforce regulations for designation and protection of monuments of cultural and historical importance in the Dzongkhag. The GT Chathrim 2002 mandates the GT to administer, monitor and review Dzongkhag plan activities, including maintenance and preservation of religious monuments that are not under the custody of monastic body or central agencies.

4.3.2 WB Safeguards Policies Applicable to the Project

The Bank’s safeguard policies require that potentially adverse environmental impacts and social impacts of Bank Group investment projects are identified, avoided or minimized where feasible, and mitigated or monitored.

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The safeguard policies provide a mechanism for integrating environmental and social concerns into development decision-making. Most safeguard policies provide that: (a) potentially adverse environmental impacts as well as specific social impacts should be identified and assessed early in the project cycle; (b) unavoidable adverse impacts should be minimized or mitigated to the extent feasible; and (c) timely information should be provided to the stakeholders, who should have the opportunity to comment on both the nature and significance of impacts and the proposed mitigation measures.

Safeguard policies that are relevant to this Project pertain to:

Environmental Assessment (OP/BP 4.01): This policy is applicable because the proposed project intends to support physical activities that will have environmental and social impacts. However, it is not anticipated that the Project will result in any significant adverse and irreversible environmental and social impacts as described under the section 4.2 above. Based on the initial analysis, the overall project will fall under Category B.

This means that (a) all activities that fall under the prescribed categories stipulated in the national laws of RGOB, environmental assessments will be done according to local regulations particularly, Environmental Assessment Act, 2000 and Regulation for the Environmental Clearance of Projects, 2002 and applicable World Bank environmental safeguard; and (b) all other sub-projects that do not require screening according to national regulations but where World Bank environmental safeguard policies are applicable and/or having some level of environmental impacts will be screened using appropriate methodology (as proposed in this framework), depending on the nature and scale of potential impacts, and mitigated. The RGOB is responsible for carrying out the Environmental and Social Screening, Environmental and Social Assessment (ESA) and preparation of Environmental and Social Management Plans (ESMPs) and for implementing the necessary safeguards.

According to Annex C of the World Bank OP 4.01 an Environmental Management Plan (EMP) (or ESMP) is a recommended element of ESA reports for Category B projects. The EMP should consists of a set of mitigation, management, monitoring, and institutional measures to be taken during implementation and operation to eliminate adverse environmental and social impacts, offset them, or reduce them to acceptable levels. The plan should also include the actions needed to implement these measures. In preparation of an EMP, the ESA consultant should:

(a) Identify the set of responses to potentially adverse impacts;(b) Determine requirements for ensuring that those responses are made

effectively and in a timely manner(c) Describe the means for meeting those requirements

This safeguard policy requires consultations at different stages. The BTFEC as the key implementing agency of the project will need to consult people/groups likely to be affected by the proposed project and other stakeholders such as local government agencies, local NGOs about the project's environmental and social aspects and takes their views into account. The Environmental and Social Assessment and Management Framework (ESAMF) as the environmental and social safeguards document of this project needs to be disclosed at a public place accessible to project-affected groups

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and local NGOs and in a form and language understandable to key stakeholders. Within this context, as part of the project preparation activities, consultations have been held with project beneficiaries and stakeholders and their views and concerns have been taken into account in finalizing this document. The ESAMF will be disclosed to public.

Natural Habitats (OP/BP 4.04). Some of the project activities under the proposed project may have impacts on the known natural habitat such as protected area and their buffer zones, on areas proposed for protection/conservation, and/or on areas of known high conservation value. The policy prohibits World Bank support for projects, which would lead to the significant loss or degradation of any critical natural habitats. Overall, the project promotes the improvement of conservation efforts of three protected areas and therefore activities that are proposed under the project are to ensure positive impacts to natural habitsts. There 10 Dzongkhags in the project area that touches protected areas or buffer zones. Negative list (non-eligibility for project support) ensures that activities are not located in or dependent on resources from critical natural habitats, as well as would not lead to significant loss or degradation of habitats.

Pest management (OP/BP 4.09): Improved irrigation and agriculture productivity enhancing activities may induce pesticide use in limited amounts, and some demonstration activities at Dzongkhag RNR centres, such as seed protection which may involve use of pesticides. However, project will not directly support procurement of pesticides and will prepare a Pest Management Plan, based on the principles of OP/BP 4.09 and PAB 2000 of RGOB once the activities are more specified.

Forestry (OP/BP 4.36): Some of the infrastructure to be supported under the proposed project may be located in the community or government forest area, which means possibility of minor removal of trees and hence impacts on the forests. Hence this policy is applicable. The project will make arrangements to ensure removal of trees is minimized and a compensatory plan including reforestation and/or afforestation will be prepared and implemented.

Physical Cultural Resources (OP/BP 4.11): It is possible that the small-scale community infrastructure under the proposed project are located close to religious, cultural, historical, and archeological sites, or sites of aesthetic or natural landscape value. This policy is applicable when any project or project/ activity involve significant scale excavation, earth moving, flooding, and any project in or near PCR site. Once the activities are screened and if negative impacts to physical cultural resources are identified, either alternate site will be explored or appropriate mitigation measures that will protect the resource will be put in place before any activity commences.

The policy requires that for materials that may be discovered during project implementation (“chance finds”) there be provision for “chance find” procedures in the context of the PCR management plan or PCR component of the EMP. Bhutan’s legislation does not address the issue of “chance finds.” Cultural heritage appear to restrict its treatment to the pre-implementation phase and to known sites or those discovered during the EA process, and do not make any provisions for unanticipated discoveries of PCR during project implementation.

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Operational Policy 4.12 on Involuntary Resettlement. The proposed project will not permit any involuntary resettlement and involuntary land acquisition. Even though involuntary land acquisition and resettlement of individuals and/or families will not take place due to project activities, co-management activities, ecosystem restoration and improved land use and conservation planning are likely to affect land use patterns of the communities. This will have an impact on their livelihoods. As RGOB procedures on land acquisition and resettlement has not been assessed to be equivalent to the World Bank’s operational policy on involuntary resettlement, OP 4.12 will be triggered, and a Resettlement Policy Framework (as part of the Framework of this project) establishes the process by which members of potentially affected communities will be consulted and participate in design of project activities and provide mitigatory/compensation measures as well as restoration of socio-economics for those affected that are acceptable to the communities. This resettlement policy framework will outline the policy, measures for restoration of livelihoods, compensation and other assistance measures for affected persons, as well as required institutional arrangements. An entitlement matrix will be prepared that will act as a guide to compensation and assistance to those persons affected as well as propose a grievance redressal mechanism.

4.3.3 Institutions and environmental and social management capacity

4.3.3.1 Implementing Agencies

Overall project will be managed by the BTFEC. In addition, the following agencies will be involved in the implementation of the project.

Ministry of Agriculture and Forests (MOAF). The National Park Management (NPM) is constituted under the MOAF, consisting of the full-time dedicated Park Manager and part-time Component Coordinators responsible for central coordination and execution, oversight, technical support and guidance. The NPM will be responsible for the overall project coordination and management, as well as financial management, environmental and social and procurement oversight, monitoring and evaluation of grants received by MOAF. The NPM will be supported by technical contract staff for engineering design, geotechnical assessments community mobilization, and other specialties including ensuring environmental and social safeguards, as relevant.

Dzongkhag Administration: Dzongkhag Tshogdu (DT), as the dzonghkag’s elected body will be responsible, in particular for implementation of some of the activities under the component 2.

The Dzongkhag Tshogde (GT) will be the implementing entity with the Gup as the chief executive.

Community/ Users. Implementation responsibility for community micro-infrastructures works rests with the Dzongkhag Tshogde (GT), Gup Administrative Officer, Park Managers and Dzongkhag RNR staff.

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4.3.3.2 Social and Environmental roles of relevant agencies and their capacity

Bhutan Trust Fund for Environmental Conservation (BTFEC): The BTFEC’s current capacity to ensure environmental and social sustainability of its investments is weak. However, as part of operational improvement of the institute and its grant making, capacity to manage environmental and social sustainability will be incorporated as part of financing including initial external technical support to continue grant making while internal capacity is developed. While it may not be practical to ensure dedicated staff at local level implementing entities such as Dzongkhag Administration, communities, etc. BTFEC’s dedicated staff for environment and social safeguard will ensure due diligence including local level awareness creation and training of individual at sites to assist in guiding the implementation and monitoring as part of grant program.

National Environmental Commission Secretariat (NECS): Overall responsibility of the enforcing environmental assessment and management in the country lies with the NECS. However, various functions and responsibilities have been delegated to sectoral ministries and district authority. The NECS may not be directly involved in the environmental management of the proposed project given small scale activities envisaged, except in new farm roads. A negative list has identified even small scale works that are environmentally sensitive that need to be avoided, and delegation of authority for other cases. However, NECS may play a role in issuing environmental clearance for new farm roads, monitoring, and providing guidance when needed.

Ministry of Agriculture and Forest (MOAF). MOAF is competent authority for certain type of project activities which is referred in Annex 2 of RECOP. The list of activities is included in Annex 6. As such it is responsible for issuing environmental clearances to those activities, and also carrying out periodic environmental compliance monitoring. Environmental Act and Regulations requires an Environmental Unit in the sectoral ministries. However, MOAF is yet to form such unit. There is no environmental staff at the MOAF at present.

Ministry of Cultural and Home Affairs (MOCHA): MOCHA will responsible in implementing all land compensation or resettlement issues that involves local communities.

District Environmental Committee (DEC). District Environmental Committee (DEC) consists of Dzongkhag planning officer, Dzongkhag forest officer, Dzongkhag land record officer, Dzongkhag agriculture officer, Dzongkhag environmental officer, and Dzongkhag engineer. District Environmental Officer is a NECS cadre deputed to district. DEC is responsible for issuing Environmental Clearance to the project/ activity mandated to the committee and for periodic compliance of the project to which EC has been issued. As part of its regular activities, NECS has given general orientation to DEOs before sending them to districts. These orientations focus mainly on Bhutan's environmental requirements.

Park Managers: The local Park Mangers will be responsible in managing and implementation of the program with the help of the local communities. The Park Managers will ensure that all environmental and social requirements are fulfilled

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based on approvals from the relevant organizations such as Department of Culture, NECS, MOAF, etc.

4.3.3.3 Adequacy of environmental and social management by RGOB

The composite RGOB environmental clearance processes, in principle, are consistent with World Bank environmental and public disclosure requirements. However, all activities with an impact on the environment under the proposed project will be subjected to some form of an environmental and social analysis, prior to disbursement of funds. The extent of the analyses will depend on a given activity; the site selected and will be based on the screening process.

The RGOB’s Environmental Assessment Act, 2000 and Regulation for the Environmental Clearance of Projects, 2002 will ensure if project activities are likely impact the environment in a negative manner, necessary mitigation measures are in place. Also, Forest and Nature Conservation Act, 1995, Forest and Nature Conservation Rules, 2006, Forest Policy, 1974 and 1979 and Biodiversity Act, 2003 of Bhutan makes it mandatory to address issues in natural habitats and therefore OP 4.04 will be complied with during project implementation.

The RGOB confirms that due to project activities communities living in forests and natural habitats will not be displaced or any land conversion activities will be promoted unless in agreement with affected communities. Furthermore, restrictions of access to forests will not be imposed by the project. The Forest and Nature Conservation Act, 1995 and Forest, Nature Conservation Rules, 2006 and Forest Policy, as well as the Land Act, 2007 will ensure that any impact to the land is managed within these regulations.

Although there is no legislation specifically tailored for minor ethnic groups or vulnerable groups, the country’s development philosophy is based on all-inclusive, nondiscriminatory development, which is gaining further ground with the growing impetus on decentralization. The national decentralization policy is geared towards enhancing local governance and promoting broad-based participation at the local community level. While geogs are officially considered the smallest unit for planning and administration of development programmes, local activities and priorities emanate from the chiog level. Each chiog is represented in the GYT by its tshogpa. The tshogpa convenes chiog meetings to discuss and draw consensus on local activities and priorities before submitting them to the GYT. Such meetings are required to be attended by a member from each household in the chiog, irrespective of social or economic standing.

In conclusion, the RGOB’s clearance procedure is adequate and fairly reliable for the context of this project. The BTFEC will also include environmental and social sustainability and management requirements as part of the improvements that will be made for its Operations Manual. The World Bank will review safeguards documentation, as appropriately used, prepared under the project and provide necessary concurrence for the approval of disbursements of funds. Any activity defined in this framework, which does not fall within the RGOB safeguards requirements will need to develop appropriate environmental analyses and planning

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and will be reviewed by World Bank and provide necessary concurrence for the approval of disbursements of funds.

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Chapter 5 – Social and Environmental Management Framework

The Environmental and Social Management Framework (ESMF) outlines the framework for planning, implementation and monitoring of environmental and social management measures required to ensure that potential adverse environmental and social impacts from the project activities are eliminated, offset, or reduced to an acceptable level. At the same time, it is expected that the ESMF will help the project enhance environmental and social benefits from the project interventions. The ESMF has been built on relevant existing national policies, legislations, regulations and guidelines and on WB safeguard policy requirements. Adequate level of screening is expected as part of the proposals to the grant facility of BTFEC. Interventions proposed under this project are expected to be small and cause minimal negative social impacts. Land acquisition and resettlement are unlikely and discouraged under the project. However, as a precautionary measure, measures will be taken to address unavoidable impacts that may arise from: (i) loss of structures; (ii) loss of livelihood systems/income opportunity (due to the loss of productive land or impact to a structure where a livelihood activity is being carried out, regardless of the legal status of ownership); and (iii) loss of community property resources (religious structures, grazing land). The framework guides the compensation for lost assets, livelihoods, community property, and resettlement and rehabilitation of project affected people. However, as RGOB guidelines and legislation for these circumstances has not been assessed to be equivalent to the World Bank’s operational policy on involuntary resettlement, OP 4.12 will be followed. Stakeholder consultations and social screening during the feasibility stage of each activity will identify and categorize the level of impacts.

5.1 Negative List of Activities

Environmental and social approach proposed is to emphasize early consideration of environmental and social risks and factors, avoidance of higher risks, and value-addition to the projects by timely environmental and social inputs and long-term sustainability of interventions. Hence, environmental and social steps and processes/ procedures are closely linked with overall grant making of the BTFEC and project steps, processes and procedures. The approach is based largely on the Bhutan environmental legislation, requirements, processes and procedures with some improvement based on practical experiences and considering World Bank policies.

Any activity that falls within the negative list below will not be included under the project for funding. However, if such activities will be supported through the overall BTFEC’s grant program, it is expected that such activities will adhere to the RGOB’s policies, regulations and guidelines related to environmental and social safeguards management.

Any project/ activity located in the protected area or area proposed for protection or area of known high conservation value or nearby an area, which is known to be a critical wildlife habitat (irrespective of whether or not inside a protected area). Critical wildlife habitats would essentially include habitats of globally threatened species as per the red list prepared by the IUCN and

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those that are listed as totally protected species in the FNCR, OR project/ activity that depend on resources from those areas.

Any project/ activity in areas where land slope is more than 45 degree and/ or

known high landslide/ erosion risk area.

Any project/ activity that leads to construction of dam / water retaining or diversion structure that is 10 m or more in height, raising of an existing dam height or if it presents with a special design complexity or pose significant disaster risks if it breaks (e.g. downstream settlements, resources, etc. and in zone of high seismicity, landslides or flood, including Glacial Lake Outburst Flood (GLOF) areas.

Any project / activity that will require full Environmental Assessment by the Bhutan Environmental Assessment Act and Regulation

Any activity that involves cutting of trees or land clearance within 100 feet on either side of the banks or edge of the rivers, streams, water courses or water sources kept as riparian reserve for conservation

Any project/ activity that will lead to purchase/ use of pesticides that fall in WHO Class Ia and Ib, and Class II or pesticides that are banned by RGoB (Annex 5 of banned pesticide in Bhutan)

Any activity that may adversely impact nationally and/or internationally renowned/ listed cultural site (within 50 m of its premise).

Any activity that resettles or impact livelihood of 50 number of families

5.2 Environmental and Social Safeguards Processing Steps

Implementation will follow the following steps closely linking with activity planning, design and implementation steps.

Step 1: Preliminary Environmental Information and AnalysisStep 2: Environmental and Social Screening and AssessmentStep 3: Environmental and Social Recommendation and Preparation of Project DPR Step 4: Environmental Clearance and social clearancesStep 5: Social Management PlanStep 5: Site-Environmental Management PlanStep 6: Compliance and Final Monitoring

The project/grant program steps and environmental and social steps are linked as described in the table below.

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Table 5: Project/grant program steps and environmental and social processing steps

Project/grant program step

Environmental Step Social Step Remarks

Pre-feasibility and/or feasibility study (after Dzongkhag/Park Management selects the concept for further consideration)

Collection of preliminary environmental information together with sub project pre-feasibility or feasibility field investigation. (by DEC)Collect religious monuments and structure information (Park Managers)Obtain relevant NoCs.Preliminary analysis of project's environmental risks and identification of probable mitigation / recommendations.

Community involvement while developing the project(s).Collection of household information, number of families and land holding (Park Managers)Land ownership certification (Dzongkhag Land Record)Identify households without ownership certificate issued by RGOB

Pre-feasibility and/or Feasibility Report contains environmental section in which environmental situation of project site/ immediate surroundings, potential risks to the project, and probable mitigations will be described. Report contains NoCs also.

Selection of sub project pre-feasibility or feasibility report for preparing Project Report or detailed project report (DPR)

Review the environmental information provided in the pre-feasibility or feasibility report, and carry out Initial Environmental Screening.Prepare environmental checklist based on the preliminary information and make the decision on the need for a detailed Environmental Assessment

Stakeholders includes Dzongkhag and RNR officials, communities and gewog official, meeting and consultative meeting to be conducted by Gup and Park ManagersReview of land holdings, census, property, livestock information in consultation with the Gewog Administrative Officer, Gup, Tshogpa and National Park management unit.Prepare social checklist based on the preliminary information and make the decision on the need for a detailed Social Assessment

Initial Environmental screening will check: i) if the project is eligible, ii) if the project is exempted by Bhutan environmental laws from further environmental investigation, and iii) who is the Competent Authority for reviewing and issuing environmental clearance.Checklists format will be prepared by BTFEC and filled out by the independent consultant

Preparation of project DPR by Park Management on behalf of the community or the Park.

National Park Management also prepares EI as required by Bhutan law (if not exempted).NoCs are checked and if needed additional NoCs obtained.

National Park Management will prepare the Social Impact studies.NoCs has to be obtain from the community by the NPMCompensation issues should be resolved in consultation with the community and the gewog administration by NPMSubstitute lost lands or cash compensation as per the Land Act of Bhutan 2007.Resettlement allowance in cash equivalent to the difference between compensation as per the Land Act of Bhutan 2007 and full replacement value as per current values in the same vicinity, plus value of all land

EI needs to be prepared before DPR preparation so that environmental inputs go into DPR.EI and/or DPR also contain all NoCs.If there are impacts on community land or community livelihood activities, an additional report will be prepared to document the details of proposed compensations with agreements from the affected households

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transaction fees and charges.Allotment of replacement land for families who become landless including households without land ownership certificate after acquisition as per provisions of the Land Act of Bhutan 2007 and/or as required by the World Bank Involuntary Resettlement policy.If there are livelihood impacts, provision of compensation for the lost livelihood based on market prices and compensation to commence livelihood activities in an alternative location and/or compensation to start an alternative livelihood as required by the World Bank Involuntary Resettlement policy

Conduct detailed Environmental Assessment if needed

Conduct detailed Social Assessment if needed

Detailed assessments will be carried out with the services of a consultant

Incorporation of environmental recommendation into project plan & design, bids, contract/ MoU (supported and ensured by NPM)

Prior to finalization of DPR including bid documents or MoU.

Approval of DPR by NEC/MOAF

Obtain EC, if not exempted

Obtain all social related clearance from the community and gewog administration

Prior to DPR approval

Approval of DPR by the World Bank

Obtain clearance from the World Bank

Obtain clearance from the World Bank

Prior to final DPR approval

Acquiring of land - Consultation meetings with the local community who are being affectedProvision of replacements, allowances and compensations identified during the pre-feasibility/feasibilityDocument the process and details of replacements, allowances and compensations provided as a Resettlement Action Plan (RAP)

This step is only applicable if community land will be acquired or livelihood impacts are present due to project activityThis step should be completed before the bidding process commences

Preparation of Environment and Social Management Plans

Project proponent prepares Site-Environmental Management Plan

Project proponent prepares site social management plan (only necessary if the RAP has not been fully implemented prior to bidding process)

Cleared by the Safeguard staff of the BTFEC

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Bidding and awarding contract or signing MoU

Inclusion of environmental requirements to the bid documentBrief prospecting contractors/ implementer on environmental requirements

Inclusion of social requirements to the bid document

Brief prospecting contractors/ implementer on social requirements

Prior to bidding

Post finalizing of MoU

Construction mobilization order

Contractor ensures the environmental specifications, including the site-specific Environmental Management Plan are implemented

Contractor ensures the social specifications, including the site-specific Social Management Plan are implemented

Site-in-charge will monitor the site-EMP/SMP and clears the construction plan if EMP/SMP implementation is satisfactory

Supervision, and monitoring

DEC and/or MOAF (by itself or engaging private/ NGO) carry out compliance monitoring every three month (to each EC required projects and sample of EC not required project)

Gewog administration Monitoring report is shared with Dzongkhag and NPM, who will instruct site-in-charge and implementers for necessary actions. NPM and Dzongkhag follow up on implementation.

5.2.1 Preliminary Environmental Information and Analysis

The project and the overall grant program follow a demand-driven approach. Initial concept of the project comes from the community or park management, usually verbally, and pass through deliberations and scrutiny, first by respective Gewog, and then by Dzongkhag. Once selected by Dzongkhag for further considerations, viability in the form of pre-feasibility and/or feasibility study is carried by a Dzongkhag team (which may consist of Dzongkhag sectoral staffs including engineer, forest officer, environmental officer, agriculture officer, planning officer, etc).

During the pre-feasibility and feasibility field investigation, the Dzongkhag team will check environmental risks by collecting environmental information of the project site and its surroundings: a checklist has been prepared to help in this process (Annex 7.) The team will observe the sites, make simple measurements and also discuss with the local people and stakeholders. The team will analyze the environmental risks, and identify possible measures for avoidance, minimization, or mitigation of the risks/ impacts. These will be shared with the technical members of the team for consideration while detailing the project plans and designs. The pre-feasibility or feasibility report will contain environmental and social chapter summarizing the findings and recommendations.

The initial analysis of project-supported activities and proposed mitigation measures are given in the table below:

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Table 6: The initial analysis of project-supported activities and proposed mitigation measures

Expected Outputs

Activities Environmental Impacts Social Impacts Mitigation Measures Timeframe Responsible Institutes

Supporting Agencies

Component 2: Improved Conservation management of the high altitude northern areas landscape (consisting of areas and associated alpine meadows, forest and agricultural ecosystemAt least 3 protected areas covering over 1,000,000 hectares under improved management and protection

Review and update of existing management plans for protected areas

• Better management of protected areas

• Improved/ maintained conservation status of key biodiversity

• If there is increase in faunal species, there is likely to be(a) domestic cattle and

wildlife conflict which would impact the socio-economic of the local community

(b) increased crop depredation from wild herbivores and ungulates

o Develop and conduct a baseline study of the existing environment and its ecosystem

o Conduct socio-economic study to understand the loss of domestic cattle, agricultural crops and its impacts

o Develop a combined sustainable livelihood management plan consistent with the 3 park management that already exists

Planning and implementing stages

JDNP, WCP and BWS

Wildlife Conservation Division, Gewog RNR staff, RDCs and UWICE, Department of Forests

Zoning and enforcement of land-use regulations

• Land use information in place that can be used to develop solutions for natural resource management issues

• Reduced land degradation

• The conservation of ecosystems of high biodiversity value

• Changes in land-use by communities that may have livelihood impacts

• loss of property and affecting income generation means

• Opportunity to develop financial or legal incentives that can lead to proper land use decisions, or eliminate one-sided central planning leading to over-utilization of the land resources

• Improve long-term quality of the land for human use, and the

o Ensure zoning is carried out taking the current land-use practices by the communities into consideration and any changes to be done with full agreement of the communities

o Substitute lost lands or cash compensation as per the Land Act of Bhutan 2007.

o Resettlement allowance in cash equivalent to the difference between compensation as per the Land Act of Bhutan 2007 and full replacement value as per current values in the same vicinity, plus value of all land transaction fees and charges.

o Allotment of replacement land

Planning and implementing stages

JDNP, WCP and BWS

Wildlife Conservation Division, Gewog RNR staff, RDCs and UWICE, Department of Forests

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Expected Outputs

Activities Environmental Impacts Social Impacts Mitigation Measures Timeframe Responsible Institutes

Supporting Agencies

prevention or resolution of social conflicts related to land use

for families who become landless after acquisition as per provisions of the Land Act of Bhutan 2007

Improved staff training and capacity for conservation

• Better management of protected areas

• - - Planning and implementing stages

JDNP, WCP and BWS

Wildlife Conservation Division, Gewog RNR staff, RDCs and UWICE, Department of Forests

Population of selected key species stable or increasing

Monitoring of species of special concern, especially tigers and other charismatic species and research on critical species

• Increased incidences of wild animal hunting and poisoning due to increased livestock and crop depredation

• Might disturb the ecological balance due to increase of key stone species

• Better understanding of conservation status of keystone species that will allow timely interventions in the face of threats

• Possibility of increased incidences of human-wild life conflict

• Might restrict the developmental activities for the farmers

o Conduct baseline study to understand human wildlife conflict situation within 3 protected areas to improve knowledge on behaviours of fauna, particularly focused on human-animal conflict

o Develop human-animal co-existence models

o Initiate the livestock and crop insurance scheme on pilot basis

Planning stage JDNP, WCP and BWS

Wildlife Conservation Division, Gewog RNR staff, RDCs and UWICE, Department of Forests and Park Services

Engagement of local communities in ecosystem management and community stewardship

• Improved status of ecosystems that can sustain conservation needs and livelihoods needs

• Opportunity to embody responsible planning and management of natural resources with community participation and ownership

o Joint management planning and implementation

Planning and implementing stages

JDNP, WCP and BWS

Wildlife Conservation Division, Gewog RNR staff, RDCs and UWICE, Department of Forests

Improvement of income level and well-being of

Basic infrastructure needs that contribute towards social development

• Inadequate attention to environmental concerns related to infrastructure development activities

• Inadequate attention to social concerns related to infrastructure development activities

o Incorporate use of code of practices and environment, health and safety guidelines

Planning and implementing stages

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Expected Outputs

Activities Environmental Impacts Social Impacts Mitigation Measures Timeframe Responsible Institutes

Supporting Agencies

beneficiary communitiesAt least 2,500 hectares of alpine meadows brought under sustainable grazing management practice and reduced impact on adjacent forests

Pilot rangeland (alpine meadow) co-management with herders

• Positive environmental impact to the nearby/adjacent forest due to less or non-grazing in the forest land

• May induce use of fertilizer, pesticides by the local communities

• May increase use of exotic grass or fodder species

• Possible forest to adjacent forest when burning the shrubs for next season as local practices

• May induce land degradation as mono culture will be practiced

• In some cases there may be increased encroachment of forest land due to success of sustainable grazing practices

• May lead to unproductive forest coverage due to disturbance of natural ecosystem

• Destruction of natural habitat due to cutting of slow growing trees for more alpine meadow

• There is likely to be positive impact to the socio-economic benefit to the community due to increased productivity

• There is likely to be increase in community yak grazing and improve the feed system for better yield of dairy products

o Demarcate and designate proper area to develop grazing land

o Avoid introduction of exotic grass seeds

o Avoid meadow burning during dry and windy seasons

o Use of pesticides, fertilizers should be not be permitted as per protected area guidelines and rules and regulations

o Introduce and employ proper collection, storage, and dispersal methods for FYM so that there is negligible waste and increased production of FYM per cattle

Planning and implementing stages

Gewog Administration, Park Office and local community

Gewog Livestock Extension Agent, Dzongkhag Livestock Officer, Livestock Health Division, BHU, Public Health Division (DoH)

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Expected Outputs

Activities Environmental Impacts Social Impacts Mitigation Measures Timeframe Responsible Institutes

Supporting Agencies

grasslands for grazing• Production of FYM may

demand farmers to keep large numbers of cattle thereby contributing to overgrazing

At least 2,500 hectares of vulnerable agricultural land under sustainable community land management practice and reduced impact on adjacent

Adoption of sustainable co-management of forests and agricultural lands in non-core wildlife habitats and engage local communities as conservation stewards

• Introduction of vegetables may sometimes involve introduction of exotic species therefore disturbances to natural local ecosystem

• Mono-cultural agricultural can bring degradation of land/soil fertility and less resistance to pest and diseases

• Use of pesticides, fertilizer and herbicides in the high altitudes could have negative impact

• Induce the use of exotic and genetically modified agricultural seeds

• Improved sustainable land management practices through informed decisions that will improve protection of critical sub-watersheds and forest resources

• Reduced impacts to the

• Erosion of local communities value, customs and practices due introduction of new and possibly permanent agricultural practices as the local communities have always been nomadic culture

• Improved and diversified agricultural and forest products

•

o Exclude from the project any pesticides that are classified as class I,IIa, and IIb by WHO

o Develop Pest Management Plans to manage the use of pesticides within ecologically acceptable levels, as well as within health and safety standards

o Apply chemical pesticides at low limits and encourage farmers at lower altitude to use bio-digester as developed and tested by National Organic Programme - Encourage the farmers to use the seeds provided by druk seed corporation and agriculture extension agents

o Promote worm composting or vermiculture with specific skill development through farmers training

o Promote regeneration of degenerated forest lands outside of protected areas

Planning and operation stage

Local community, Gewog Administration, Park Office

Gewog Agriculture Extension Agent, Dzongkhag Agriculture Officer, NPPC, RDC, Druk Seed Corporation

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Expected Outputs

Activities Environmental Impacts Social Impacts Mitigation Measures Timeframe Responsible Institutes

Supporting Agencies

adjacent forest areasAt least 100,000 hectares of forest lands under sustainable management (reduced pressures) and providing supplementary income from ecotourism and use of NTFPs

Provide supplementary income from community-based ecotourism and use of Non Timber Forest Products (NTFPs) with value addition

• Indiscriminate unsustainable harvesting of cordyceps and other medicinal species, degradation of fragile alpine ecosystem, and destruction of alpine slow growing alpine vegetation for fuelwood

• Increased visitation beyond the carrying capacity of the PA and putting pressure on animal habits and behaviors

• Improper siting can lead to land degradation and loss of wildlife habitats and deterioration of scenery

• Development of tourism facilities such as accommodation, water supplies, restaurants and recreation facilities can involve sand mining, soil erosion and extensive paving

• Habitat degradation with air and noise pollution due to vehicles, solid waste and littering, trampling, tourism leisure activities, etc.

• Increased income• Disruption of

community relationship within different gewogs as a result of unclear gewog boundaries

• Out migration of people from community due to increased income

• Improved incomes to local communities

• Physical impacts caused by tourism-related land clearing and construction, continuing tourist activities and long-term changes in local economies and ecologies

o Development of sustainable harvesting management plan based on scientific information, development and implementation of field friendly policy and regulation, enforcing people to use alternative energy sources such as solar and kerosene by cordyceps collectors

o Immediate gewog boundary demarcation carried out and accordingly informing the gewog administration and local community

o - Improve and develop basic amenities in the villages to retain local rural communities

Operation stage

Local community, Gewog Administration, Park Office

Gewog Forestry Extension Agent, Research Development Centers (RDCs), Dzongkhag Forestry Officer, Social Forestry Division, Territorial Forestry Division, Policy and Planning Division (MoAF), Land Commission Secretariat, Dzongkhag Land Record Officer, Dzongkhag Yargay Tsogdu (DYT)

• Excessive harvesting of • Loss of future income o Conduct detail ecological study Planning and Gewog Gewog Forestry

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Expected Outputs

Activities Environmental Impacts Social Impacts Mitigation Measures Timeframe Responsible Institutes

Supporting Agencies

medicinal plants and other NTFPs leading to extinction

from extinction due to overharvesting

on the distribution and its availability, parts used and their status in IUCN red list, based on scientifically written management plan

operation stage Adminsitartion, Local Community and Park Office

Extension Agent, Research Development Centers (RDCs), Dzongkhag Forestry Officer, Social Forestry Division, Territorial Forestry Division, Indigenous Traditional Medicinal Services

• Destruction of vegetation through cutting of slow growing trees for firewood from promotion ecotourism activity

• Erosion of delicate vegetation through use of yaks and horses for transportation

• Erosion of Bhutanese culture and value systems in the rural areas

• Conflict of community over grazing land

o Strict adherence to the regulation passed by TAB for the use of firewood by trekkers and increasing use of LPG or kerosene by tour operators

o Encouraging and supporting the farmers residing along the trekking route to develop home stay facilities with minimum tourist guesthouse standards

Planning and operation stage

Local community, Gewog Administration, Park Office

Tourism council of Bhutan, Dzongkhag Engineering Division, Nature, Recreation and Ecotourism Division (DoFPS), Department of Forest and Park Services

• Indiscriminate disposal of non-biodegradable waste along the tourist trails

• Erosion of Bhutanese culture and value systems in the rural areas

o Increased auditing of non-biodegradable waste at the entry and exit trekking point by park officials and promotion of livestock and vegetable products by farmers and organizing increased frequency of cleaning campaign by TCB Increased awareness education to the rural community on the importance of preserving native culture for future sustainability of tourism in the areas and

Planning and operation stage

Local community, Gewog Administration, Park Office, Tourism Authority of Bhutan

NRED (DoFPS), NEC, Department of Culture (MoHCA)Tourism Council of Bhutan

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Expected Outputs

Activities Environmental Impacts Social Impacts Mitigation Measures Timeframe Responsible Institutes

Supporting Agencies

development and implementation of stringent code of ethics to be followed by the visiting tourists /guests

o Improved waste management system

• Degeneration of forests as a result of harvesting of billets for mushroom spawning

• - o Promote mushroom varieties that do not need billets for spawning

o Plan and employ appropriate silvicultural techniques, e.g coppicing for harvesting billets

o - Develop marketing strategy to improve the market access

Planning and operation stage

Gewog Adminsitartion, Local Community and Park Office

Gewog Forestry Extension Agent, Research Development Centers (RDCs), Dzongkhag Forestry Officer, Social Forestry Division, Territorial Forestry Division, National Mushroom Centre

Component 3: Mainstreamed conservation and sustainable forest and natural resources management approaches (developed under component 2) into national policies, strategies and plans and replication of such approaches elsewhere in BhutanProcedures and guidelines for establishing sustainable resources management development and documented for at least 5 natural types (e.g. grazing, forestry, protected areas, water and land

Development of guidelines for establishing sustainable resources management

• Better management of natural resources

• Inadequste community consultation in the development of guidelines that reduces ownership, impacts to the soci-economic well-being of people

o The social issues should be consulted

o Extensive issue should be covered which involves, land holdings, socio-economic

o Inventories and qualitative traditional knowledge should be recorded to avoid any social conflict

o Loss of property and income generation

o Procedures and guidelines should focus on climate change issues, socio-economic of the local communities living within the parks

o Inventories of 5 natural types of

Initial stage till the end of the program

Department of forest, Wildlife Conservation Division, Park Management Units, Gewogs and Dzongkhag representatives

National Environment Commission Secretariat, Research Development Centers (RDCs), Dzongkhag Forestry Officer, Social Forestry Division, Territorial Forestry Division BTFEC, donor agencies

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Expected Outputs

Activities Environmental Impacts Social Impacts Mitigation Measures Timeframe Responsible Institutes

Supporting Agencies

management) landscapes such as grazing area, type of forestry, water and land management should be made to avoid future interventions

o Capacity building of the local communities through training

o Substitute lost lands or cash compensation as per the Land Act of Bhutan 2007.

o Resettlement allowance in cash equivalent to the difference between compensation as per the Land Act of Bhutan 2007. and full replacement value as per current values in the same vicinity, plus value of all land transaction fees and charges.

o - Allotment of replacement land for families who become landless after acquisition as per provisions of the Land Act of Bhutan 2007

Biodiversity and sustainable natural resource management consideration incorporation into revision of at least 5 existing NRM sector policies, strategies and

Improvements to NRM sector policies, strategies and

• Better management of natural resources

• o Capacity building of the local communities through training

o Capacity building of the local park management and implementers

Initial stage till the end of the program and annually

Department of forest, Wildlife Conservation Division, Park Management Units, Gewogs and Dzongkhag representatives

National Environment Commission Secretariat, Research Development Centers (RDCs), Dzongkhag Forestry Officer, Social Forestry Division, Territorial Forestry Division BTFEC, donor agencies

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Expected Outputs

Activities Environmental Impacts Social Impacts Mitigation Measures Timeframe Responsible Institutes

Supporting Agencies

guidelines (forestry, agriculture, grazing, watershed management)

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5.2.2 Social and Environmental Screening and Assessment

Social screening: Social screening will be carried out as part of the technical design for each subproject to assess the precise nature and magnitude of social impacts. To ensure consistency in the application of social screening criteria across different sectors, MoAF would prepare and use a standard social screening format based on upon the current NEC and the Wildlife Conservation Division environmental screening guidelines and its past experience of executing similar projects. The screening format should cover but not limited to following issues:

Loss of land, regardless of the status of ownership Loss of structures Loss of socio-economics Impacts on vulnerable groups Impacts on common community resources

To guide the MoAF in preparing a social screening format, a sample format is provided as part of this framework in Annex 8.

Social screening will identify the potential for loss of land, assets/structures, socio-economics, willingness of the community to donate land to the project, and other significant social impacts. The findings the social screening will include recommendations for the exclusion of the subproject if involuntary land acquisition or serious social impacts are anticipated. Social screening will also enable the categorization of subprojects based on their level of social impacts. Where the extent of adverse social impacts is minor and no displacement or loss of assets or socio-economics is expected, further social assessment will not be necessary. However, for those subprojects where there is a potential for land acquisition and/or significant social impacts, detailed social assessments/studies will be carried out and if required appropriate social safeguard instruments developed. The screening will also identify the vulnerable households among the affected and any gender disparities.

Environmental Screening: If the project is viable, the pre-feasibility/ feasibility report will be sent to the NPM as a written proposal for funding support. NPM will review the report for technical soundness and costs in view of possible funding support, and if selected for funding, a team will be send to the field for preparing a Detailed Project Proposal. DPR is actually a proponent's responsibility. However, as community lack capacity, NPM/ NPM will prepare DPR on behalf of the community. At this stage, project proponent needs to prepare detailed Environmental Information as required by the Bhutan environmental law, if the project does not fall in the exempted category. As the community lack capacity, they need to be supported in preparing the EI, and this could be best done by NPM prior to the DPR. The EI contains a simplified version of the Site EMP, and all required NoCs. The EI feedback and recommendations need to be incorporated into the DPR, and thus help internalize the environmental factors and adding value to the project and the grant program.

5.2.3 Environmental and Social Recommendations and Project DPR

The project DPR needs to internalize all relevant environmental and social recommendations, factors and mitigations into the plan, design and costs as well as in

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the contract clauses or MoU clauses. This may be supported and ensured by the environmental and social experts in the NPM prior to finalization of the DPR.

In addition, during this stage an additional report should be prepared if there are impacts on community land or community livelihood activities to document the details of proposed compensations.

5.2.4 Environmental Clearance (EC) and Social Clearances

The project DPR is approved by the NPM or Steering Committee. Before approval, environmental clearance (EC), as well as relevant social clearances needs to be obtained. NECS is the competent authority for certain type of projects; whereas WCD MoAF is mandated for EC for certain type of projects (Annex 6). The EI is submitted to the concerned CA for obtaining EC. For the exempted projects EC is not required - however, DPR must contain all relevant NoCs and incorporate environmental recommendations made in the pre-feasibility/ feasibility (preliminary environmental analysis).

Social clearances will be obtained from Chiwog communities those who have been affected due to the project activities and the final clearance should be obtained from the gup of the gewog.

5.2.5 Social Management Plan (Resettlement Framework)

This matrix is developed on the basis of relevant government and World Bank policies as well as anticipated impacts under the proposed programs. It is expected that the project land needs will be marginal and are expected to be obtained through voluntary donation by individual households or communities, as practiced in earlier World Bank projects.

Types of Impact Entitlement Unit EntitlementsLoss of private lands

Affected HHs having ownership certificate issued by the RGoB

Substitute lost lands or cash compensation as per the Land Act of Bhutan 2007.

Resettlement allowance in cash equivalent to the difference between compensation as per the Land Act of Bhutan 2007 and full replacement value as per current values in the same vicinity, plus value of all land transaction fees and charges.

Allotment of replacement land for families who become landless after acquisition as per provisions of the Land Act of Bhutan 2007.

Affected HHs without ownership certificate issued by RGOB

Replacement land and resettlement allowance in cash as per the World Bank IR Policy agreed with the World Bank

Affected Vulnerable HHs Additional assistance to be identified most vulnerable groups to restore livelihoods. Preferential treatment in employment in project

activities Skill training and income generation support Priority in Poverty reduction/social development

programsLoss of residential structures

Affected person/families Cash compensation in line with the Bhutan Schedule of Rate.

To ensure compensation at replacement value, rehabilitation assistance in cash equivalent to cover depreciation over and above compensation determined

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on the basis of BSR rates.Loss of cashcrops

Affected HHs Compensation for cash crops and trees calculated as per the Land Act of Bhutan 2007. 2007 (revised rates), including non-title holders.

Loss of income Affected person/Families

Rehabilitation assistance for lost or diminished livelihoods. Preferential treatment17 in employment in project

activities Skill training and income generation support Priority consideration in poverty reduction/social

development programs In the case of landless families who suffer partial or total

loss of livelihood, allotment of land free of cost.Loss ofCommunityResources

AffectedInstitution /community

Compensation for re-establishing or re-constructing lost community resources such as religious and cultural structures or providing alternatives in consultation with affected communities.

Temporary losses AffectedPerson /families

Cash compensation/transition allowance

5.2.6 Site-Environmental Management Plan

As recommended in the Application for Environmental Clearance Guidelines, the Project Proponent will prepare Site-Environmental Management Plan during the inception of the project or sub-project. The project proponent will conduct a walkthrough together with local stakeholders including the community, Dzongkhag, site-engineers, section officer, etc. before preparing site-EMP. Site-in-charge will approve the site-EMP before works at site begins. The implementers will carry out the activities of the project as per the Site-EMP. The Site-EMP will be also included in the contractor documents with appropriate clauses to ensure the EMP is implemented. Table presented below identifies a generic Environmental Management Plan to be used in conjunction with the site-specific plan.

17 Construction contracts include provision that PAPs will have priority in wage labor/employment on sub-project construction during implementation and post construction s maintenance works.

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Impact Potential Significance

Location Mitigation Measures Frequency of Interventions

Implementing Responsibility

Monitoring Responsibility

Poor design impacting structural integrity and safety of infrastructure such as physical trauma associated with failure of structures, fires, injuries due to falls or contact of machinery, respiratory distress from dust, fumes and noxious odours and exposure to hazardous materials

High Project site Incorporate as appropriate the following during planning, siting and design phases:Inclusion of buffer strips or physical separations around project sitesIncorporation of siting and safety engineering criteria to prevent failures due natural and/or man-made risks (such as wind, flooding, landslides, fires, etc.Application of locally regulated building codes to ensure structural integrityCertification of designing and constructing infrastructure, the applicability and appropriateness of structural criteria

During design stage

Design engineer

Improper disposal of debris during site clearing blocking drains and waterways and contaminating water

High Construction area and disposal sites

Regular removal of debris generated to an approved disposal siteIf demolished material contains hazardous waste, disposal should be carried out as per the guidelines provided the RGOBAll structures demolished should be removed, and debris recycled or disposed of in sites authorized by the appropriate authority

At least once a week; all debris generated as part of site clearing including demolition of buildings should be done before construction activities commence

Contractor Supervising Officer with the support of local stakeholders

Improper storing and lengthy stockpiled period of gravel/soil washing off to low-lying areas and sea

Moderate Construction area

All materials should be stored in a manner to minimize erosion. Silt traps shall be placed where appropriate to minimize sedimentation of nearby waterways.

At the stage of construction planning

Contractor Supervising Officer

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Impact Potential Significance

Location Mitigation Measures Frequency of Interventions

Implementing Responsibility

Monitoring Responsibility

Reduce the length of stockpiling through proper planning of construction stages.

Storm water congestion on site can creating inconveniences to the community and construction work due to water stagnation; this can also cause vector-borne diseases

Moderate Construction area

Drainage paths should be cut at the early stages of the construction work to divert the storm water outEnsure water is not stagnated on the construction area at all timesEliminate any possible breeding habitats

Early stages of site preparation

Contractor Supervising Officer with the support of local stakeholders

Overexploitation of water for construction and labour camps

High Construction site

Water should be obtained with a consent from the relevant authorityWater use at site should be monitored to manage possible over use and improper use

Consent to be taken by the time of mobilizationWater usage to be monitored daily

Contractor Supervising Officer with the support of local stakeholders

Waste water generated during construction and from labour camps can also contaminate water sources

Moderate Construction areas and the vicinity

Divert the waste water to an existing sewage systems with the approval of the relevant authorityTreat water generated through construction activities, particularly water mixed with paint and similar hazardous material

To be set up at the early stages of mobilizationDuring the times when hazardous material are in use

Contractor Supervising Officer with the support of local stakeholders

The use of machines working with fuel, oils and lubricants on work sites maybe a source of water contamination risks by infiltration

Moderate Construction areas and the vicinity

All machines should good conditions without any possible leaksHandling of fuel, oils and lubricants for the machines should be done on designated workshops/ fuel sheds located in the vicinity of the site

At all times Contractor Supervising Officer with the support of local stakeholders

Accidental spillage of oil and chemicals impacting groundwater and uncontrolled site runoff to nearby coastal

Moderate Construction areas and the vicinity

Plan should be in place to respond to such accidents

At the stage of construction planning

Contractor Supervising Officer with the support of local

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Impact Potential Significance

Location Mitigation Measures Frequency of Interventions

Implementing Responsibility

Monitoring Responsibility

waters impacting water quality due to suspended solids and other contaminants.

stakeholders

Various types of waste such as litter, human waste, food waste, etc. from labour camps, as well as construction-related wastes will be generated can create inconveniences to public and school users, and contribute negatively towards public health; wastes that are not disposed properly can become breeding grounds for water borne diseases and can contribute to groundwater and coastal water contamination; and unsafe disposal of asbestos from degraded roofs may cause public health issues

High Construction areas and the vicinity

Waste management plan should be agreed at the mobilization stageA waste recycling plan shall be prepared by the contractor to reduce the amount of waste disposedWaste generated during site clearance should be disposed of in areas approved by the local authorityConstruction sites shall be cleared on a daily basis of any material that can cause injury or potential become a public health hazardProper and marked waste bins should be located on construction sites and labour campsDisposal of hazardous materials shall be done in a manner that does not cause harm to surrounding environment and public. Paints, thinners and other material shall be temporarily stored and disposed of RGOB approved methodology and sites in consultation with the local authorities.Temporary storage areas should be barricaded and marked.During decommissioning activities, hazardous material shall be identified (e.g asbestos sheets) and

Planning part should be carried out as construction planning and should be in place by the time of mobilizationAt least weekly disposal of waste should take place

Contractor Supervising Officer with the support of local stakeholders

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Impact Potential Significance

Location Mitigation Measures Frequency of Interventions

Implementing Responsibility

Monitoring Responsibility

removed separately and immediately to minimize contamination and disposal to be done according to national guidelines.

Unsustainable and unapproved extraction of construction materials such as sand, timber, gravel, etc. placing a burden of the resources

Low Sites of resources

Source construction material only from RGOB approved sites and licensed commercial vendors

At the time of extraction / purchasing

Contractor Supervising officer

Transportation of material to and from the site creating disturbances to residences can cause injury and increase traffic congestion in the area and transportation of construction material on open vehicles and the high speed of vehicle running can generate dust and will cause potential safety issues

High Construction site and vicinity

Plan transportation to take place outside peak traffic hours.Speed limits should be introduced for various strategic points.Vehicles should also have proper reverse signaling (both light and sound) to reduce possible accidents.Material transportation should be carried out in closed vehicles or make arrangements to cover the vehicles.Emphasizing safety aspects among drivers and use of licensed drivers onlyAvoiding dangerous routes and times of the day to reduce risks of accidentsImprove signage and visibility and overall safety of roads usedCoordination with emergency units to ensure that appropriate first aid is provided in the event of accidentsEmploying safe traffic control

Planning should be done as part of construction planningAll other actions to be carried out at all times

Contractor Supervising officer

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Impact Potential Significance

Location Mitigation Measures Frequency of Interventions

Implementing Responsibility

Monitoring Responsibility

measures, including road signs and flag persons to warn of dangerous conditions

Improper location of camps and workers making space for interactions with community leading to negative social impacts – applicable particularly labour is bought in from outside the community

Moderate Construction site and vicinity

Labour camps if needed to be set up should be located in a site with minimum interaction with the communityClosely monitor the movements of workers through strict labour supervision.

Setting up of labour camps and access to labourers should be planned as part of construction planningSupervision should be carried out at all times

Contractor Supervising Officer with the support of local stakeholders

Construction sites that are not cordoned off can contribute towards potential safety hazards to residents who are located close to the construction site

High Construction site and vicinity

Vehicle drivers should maintain appropriate speeds in order to avoid accidents, especially when driving in populated areas.Strict labour supervision should be undertaken of construction workersLabour awareness programmes to educate labourers on codes of conduct shall be introducedSafety regulations shall be followed by contractors to minimize risksNecessary barriers, warnings, signs demarcating unsafe areas should be followed according to standard construction practicesSafety nets should be used to cover buildings and prevent injury to workers, as well as the community living in the vicinity

Code of conduct and safety protocols should be put in place as part of construction planningFirst aid facility should be in place as soon as the contractor mobilizes to the siteLabour awareness creation on safety should be carried out as soon as the staff are mobilized

Contractor Supervising Officer with the support of local stakeholders

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Impact Potential Significance

Location Mitigation Measures Frequency of Interventions

Implementing Responsibility

Monitoring Responsibility

Safety paths should be identified for peoples movements.Provide first aid facilities in case of an emergency and safety protocols during such event.Provide safety equipment to workers

Physical interventions should be in place at all times of construction activities

During site preparation and construction work noise will be generated due to construction related work creating disturbances to residents living close to the construction site; and construction-induced traffic movement from pick-ups, excavators, dump trucks, etc., use of powerful mechanical equipment, and demolition of existing buildings will also contribute to noise pollution.

High Construction site and vicinity

Noise shall be kept to minimum required standards during school hours in order to prevent any inconveniencesWhere possible, usage of noise generating equipment should be kept to the minimumStrict labour supervision should be undertaken to reduce noiseEquipment used on site shall be in good serviced condition.

All times during construction activities

Contractor Supervising Officer with the support of local stakeholders

Dust generated during excavation work, backfilling, reinstatement work, demolition activities, cement mixing, handling construction material, truck movement in the site area can impacts the air quality during construction; dust generated during clearing and construction work can cause difficulties for students who have respiratory problems, soil/ gravel kept for long periods

High Construction site and vicinity

Materials such as gravel and soil shall be covered during transportFrequent watering down of construction site shall be needed to minimize dust generationPut up dust barriers in decommissioning areas and areas of extensive earth works and cement mixing areasExcessive dust generating activities should be planned out during off peak traffic times

All times during construction activities

Contractor Supervising Officer with the support of local stakeholders

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Impact Potential Significance

Location Mitigation Measures Frequency of Interventions

Implementing Responsibility

Monitoring Responsibility

without proper cover can generate dust and become an inconvenience to surrounding residents; transportation of materials to site will also generate dust; and decommissioning of existing structures can also create dust that is potentially hazardous.Gaseous emissions from construction plants, paint and vehicles contributing to air pollution

High Construction site and vicinity

The vehicles should be maintained well to reduce excessive emissionsConstruction plants and paint storage and mixing areas should be away from areas used by residencesOperation of construction plants and painting should preferably take place during off peak traffic times

All times during construction activities

Contractor Supervising Officer with the support of local stakeholders

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5.2.7 Compliance and final monitoring

Regular supervision and quality control of the construction will be done by the site team (site engineer and section officer). NECS/DEC and/or WCD MOAF will carry out periodic environmental compliance monitoring18, all project for which EC is required and on representative sample of those project for which EC is not required, as required by the Bhutan law. Periodic compliance monitoring will be carried out once in three months in general (one monitoring mid-way of construction if construction period is three month or less, two monitoring if construction period is three to six months, every three month for more than six-month construction period). However, if new environmental and/or social issues not identified during the assessment have risen or the mitigations measures agreed have not been adequately implemented, monitoring will need to be done more frequently.

Besides, final environmental and social monitoring for demobilization certification will also be carried out. Project resources, if necessary, will be made available to WCD MOAF for engaging private party or NGO in supporting the periodic compliance and final monitoring. Quarterly report will be produced with consolidated screening information of all sites and will be shared with the World Bank, which includes efforts made by the project towards avoidance of potential impacts on natural habitats, forest resources and/or cultural/heritage/religious sites. Consolidated monitoring reports will be prepared by the MOAF bi-annually for activities supported through project financing and will be shared with the World Bank team. An annual environmental and social audit will be conducted to assess the effectiveness of safeguard screening and ESMP implementation.

5.3 Consultations and Grievance Addressing

Environmental consultation and grievance addressing: Consultations are inbuilt in the project planning, design and implementation approach. Pre-feasibility and feasibility team will conduct and record consultations with the stakeholders including local body, communities, users such forest users committee or water-users committee, schools/ clubs and other stakeholders as part of the assessment. During construction, the site supervision team will consult regularly with the affected people/community as well as local stakeholders for their observations and feedback, and the periodic monitoring team from Dzongkhag or from WCD or from NECS or NGOs will also consult with these stakeholders.

For the grievances, the project implementation and/or supervision team at site will keep a feedback register and let the local stakeholder know that they may register their project related complaints or comments or suggestions. The project team will review these feedbacks and take appropriate actions. Complaints may also be registered at the gewog/Dzongkhag, which is close to the site. The gewog will take up these complaints with the project team and forward the complaints to Dzongkhag. Complainant has the option of filing the case with the Dzongkhag administration or even to the court.

18 Periodic or surprise compliance monitoring is the responsibility of the Competent Authority issuing the Environmental Clearance.

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Social Grievance redress mechanism: Bhutan has a robust grievance redress system. Any issue on grievances will be verified at the gewog level by the gup. The poorest of the poor grievance issues are put up to Ministry of Home and Cultural Affairs by the Dzongkhag, which get forwarded to the His Majesty’s Secretariat for compensation. Informal traditional dispute mechanisms, based primarily on negotiations between aggrieved parties and through community meetings to reach consensus on a satisfactory resolution, are already practiced in Bhutan in general and in the participating gewogs in particular. These traditional dispute practices appear to function well and are generally accepted by all community members as a satisfactory means for resolving disputes and grievances. The project will rely on these existing systems for addressing grievance from the project. However, to make the grievance redress process more systematic, but still working within traditional community norms and practices, aggrieved parties will follow following steps.

Any complaining parties will submit a formal complaint to the Tshogpa of the Chiwog for consideration;

If it cannot be resolved within the jurisdiction of the Tshogpa of the Chiwog, the grievance case will be submitted to the GT. The GT will review the grievance case and call a public hearing.

Where the complainant does not agree with the recommendation of the public hearing, he or she can file the case with the Dzongkhag Administration for review and intervention. The Dzongkhag Administration will review the case and make recommendations to resolve the case.

The complainant can always file his or her case in court at any time where the case will be reviewed and settled.

Any appeals to the above mentioned committees will be recorded in a register, identifying the name of the aggrieved party, date of grievance registered, nature of grievance, and measures suggested to address the grievance, including escalating resolution of the grievance to MOAF or RGOB for recourse through traditional judicial practices, and date of grievance redress.

As part of the World Bank requirement BTFEC will use the existing Dzongkhag Administration Grievance Redressal Committee (GRC) consisting of the Dzongkhag Administration grievance redressal team, as well as a community leader from the project area, a representative from the affected household and a representative from a non-governmental organization located in the area. Any issue that has not been handled at the local level should be moved to the GRC to be set up at the MOAF with representatives from the community affected, a non-governmental organization and representative from the BTFEC (preferably the safeguard staff). This process should be followed for any grievance due to the project finance and before advising the aggrieved party to seek legal support. All proceedings of the GRCs should be properly recorded and made available to public in accessible places.

5.4 Environmental and Social Management Cost

Project level environmental and social mitigation costs will be internalized within the project DPR. The subproject preparation cost should also include any environmental study/ assessment cost, and each project EI or EMP will have estimates for specific

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item wise mitigation cost for each relevant subproject. This will be reflected in the subproject DPR, and will be confirmed before approval of project DPR.

5.5 Specific considerations on Natural Habitats, Forestry, Pest Management and Physical Cultural Resources

5.5.1 Natural Habitats

During the preliminary environmental investigations and environmental screening of a grant proposal if it was determined that there is significant impact to natural habitats (i.e. degradation of natural habitats), an environmental assessment should be conducted to identify the magnitude of the impacts, possible impact avoidance measures and/or measures to off-set the impacts. If the site is a critical natural habitat, alternative site for the proposed activity need to be identified. The approved mitigation measures in such circumstances will need to include in the preparation of site-specific environmental management plans.

5.5.2 Forestry

While the project does not support commercial extraction of natural forest resources or activities that may cause significant impacts to forest resources, as a precautionary measure, a verification will be made that such activities are not supported by the project. All construction material extraction should be from RGOB designated timber production areas. In case this is not possible, an environmental assessment should be conducted to identify the magnitude of the impacts, possible impact avoidance measures and/or measures to off-set the impacts. Similar to natural habitats, the approved mitigation measures in will need to be included in the preparation of site-specific environmental management plans.

5.5.3 Pest Management

The pest management issues which can be potentially raised by the project may relate to possible both direct and indirect effect of stimulating greater use of agro-chemicals associated with more intensive cultivation and/ or higher crop value.

The objective of ESMF in this regard is to encourage adoption of Integrated Pest Management (IPM) approach and increase beneficiaries’ awareness of pesticide-related hazards and good practices for safe pesticides use and handling as well as to provide relevant training and information dissemination activities.

Principles of the Integrated Pest Management: The primary aim of pest management is to manage pests and diseases that may negatively affect production of crops so that they remain at a level that is under an economically damaging threshold. Pesticides should be managed to reduce human exposure and health hazards, to avoid their migration into off-site land or water environments and to avoid ecological impacts such as destruction of beneficial species and the development of pesticide resistance. One important strategy is to promote and facilitate the use of Integrated Pest

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Management (IPM) through preparation and implementation of an Integrated Pest Management Plan (PMP).

Integrated pest management consists of the judicious use of both chemical and nonchemical control techniques to achieve effective and economically efficient pest management with minimal environmental contamination. IPM therefore may include the use of:

a) Mechanical and Physical Control;b) Cultural Control;c) Biological Control, andd) Rational Chemical Control.

Integrated Pest Management is the use of multiple techniques to prevent or suppress pests in a given situation. Although IPM emphasizes the use of nonchemical strategies, chemical control may be an option used in conjunction with other methods. Integrated pest management strategies depend on surveillance to establish the need for control and to monitor the effectiveness of management efforts. World Bank Group in the Environmental, Health, and Safety Guidelines provides the following stages should be considered when designing and implementing an Integrated Pest Management Strategy, giving preference to alternative pest management strategies, with the use of synthetic chemical pesticides as a last option. As a first essential step, those who make pest management decisions should be provided with training in identification of pests and beneficial (e.g. natural enemy) species, identification of weeds, and field scouting methods to evaluate which pests are present and whether they have reached an economic control threshold (the density at which they begin to cause economically significant losses).

Alternatives to Pesticide Application: Where feasible, the following alternatives to pesticides should be considered:

Rotate crops to reduce the presence of pests and weeds in the soil ecosystem; Use pest-resistant crop varieties; Use mechanical weed control and / or thermal weeding; Support and use beneficial organisms, such as insects, birds, mites, and

microbial agents, to perform biological control of pests; Protect natural enemies of pests by providing a favorable habitat, such as

bushes for nesting sites and other original vegetation that can house pest predators and by avoiding the use of broad-spectrum pesticides;

Use animals to graze areas and manage plant coverage; Use mechanical controls such as manual removal, traps, barriers, light, and

sound to kill, relocate, or repel pests.

Pesticide Application: If pesticide application is warranted, users are recommended take the following actions:

Train personnel to apply pesticides and ensure that personnel have received applicable certifications or equivalent training where such certifications are not required;

Review and follow the manufacturer’s directions on maximum recommended dosage or treatment as well as published reports on using the reduced rate of

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pesticide application without loss of effect, and apply the minimum effective dose;

Avoid routine “calendar-based” application, and apply pesticides only when needed and useful based on criteria such as field observations, weather data (e.g. appropriate temperature, low wind, etc.),

Avoid the use of highly hazardous pesticides, particularly by uncertified, untrained or inadequately equipped users. This includes:

Pesticides that fall under the World Health Organization Recommended Classification of Pesticides by Hazard Classes 1a and 1b should be avoided in almost all cases, to be used only when no practical alternatives are available and where the handling and use of the products will be done in accordance with national laws by certified personnel in conjunction with health and environmental exposure monitoring;

Pesticides that fall under the World Health Organization Recommended Classification of Pesticides by Hazard Class II should be avoided if the project host country lacks restrictions on distribution and use of these chemicals, or if they are likely to be accessible to personnel without proper training, equipment, and facilities to handle, store, apply, and dispose of these products properly;

Avoid the use of pesticides listed in Annexes A and B of the Stockholm Convention, except under the conditions noted in the convention and those subject to international bans or phaseouts;

Use only pesticides that are manufactured under license and registered and approved by the appropriate authority and in accordance with the Food and Agriculture Organization’s (FAO’s) International Code of Conduct on the Distribution and Use of Pesticides;

Use only pesticides that are labeled in accordance with international standards and norms, such as the FAO’s Revised Guidelines for Good Labeling Practice for Pesticides;

Select application technologies and practices designed to reduce unintentional drift or runoff only as indicated in an IPM program, and under controlled conditions;

Maintain and calibrate pesticide application equipment in accordance with manufacturer’s recommendations. Use application equipment that is registered in the country of use;

Establish untreated buffer zones or strips along water sources, rivers, streams, ponds, lakes, and ditches to help protect water resources;

Avoid use of pesticides that have been linked to localized environmental problems and threats.

Pesticide Handling and Storage: Contamination of soils, groundwater, or surface water resources, due to accidental spills during transfer, mixing, and storage of pesticides should be prevented by following the hazardous materials storage and handling recommendations. These are the following:

Store pesticides in their original packaging, in a dedicated, dry, cool, frost-free, and well aerated location that can be locked and properly identified with signs, with access limited to authorized people. No human or animal food may be stored in this location. The store room should also be designed with spill containment measures and sited in consideration of potential for contamination of soil and water resources;

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Mixing and transfer of pesticides should be undertaken by trained personnel in ventilated and well lit areas, using containers designed and dedicated for this purpose.

Containers should not be used for any other purpose (e.g. drinking water). Contaminated containers should be handled as hazardous waste, and should be disposed in specially designated for hazardous wastes sites. Ideally, disposal of containers contaminated with pesticides should be done in a manner consistent with FAO guidelines and with manufacturer's directions;

Purchase and store no more pesticide than needed and rotate stock using a “first-in, first-out” principle so that pesticides do not become obsolete. Additionally, the use of obsolete pesticides should be avoided under all circumstances; A management plan that includes measures for the containment, storage and ultimate destruction of all obsolete stocks should be prepared in accordance to guidelines by FAO and consistent with country commitments under the Stockholm, Rotterdam and Basel Conventions.

Collect rinse water from equipment cleaning for reuse (such as for the dilution of identical pesticides to concentrations used for application);

Ensure that protective clothing worn during pesticide application is either cleaned or disposed of in an environmentally responsible manner;

Maintain records of pesticide use and effectiveness.

Pest Management Plan: The entity which will be dealing with pest management within the projects to be supported under the project has to be guided by the Pest Management Plan. The content of the Pest Management Plan should apply to all the activities and individuals working. It should be emphasized also that non-chemical control efforts will be used to the maximum extent possible before pesticides are used.

The Pest Management Plan should be a framework through which pest management is defined and accomplished. The Plan should identify elements of the program to include health and environmental safety, pest identification, and pest management, as well as pesticide storage, transportation, use and disposal. Management Plan is to be used as a tool to reduce reliance on pesticides, to enhance environmental protection, and to maximize the use of integrated pest management techniques.

The Pest Management Plan shall contain pest management requirements, outlines the resources necessary for surveillance and control, and describes the administrative, safety and environmental requirements. The Plan should provide guidance for operating and maintaining an effective pest management program/ activities. Pests considering in the Plan may be weeds and other unwanted vegetation, crawling insects and other vertebrate pests. Without control, these pests provoke plants’ deceases. Adherence to the Plan will ensure effective, economical and environmentally acceptable pest management and will maintain compliance with pertinent laws and regulations. The recommended structure of a Pest Management Plan is presented in the Annex 9. The need for a stand-alone and comprehensive Pest Management Plan will be decided based on the findings of the preliminary environmental investigation and environmental screening steps, and/or environmental assessment. If the impacts due to a given grant is low, pest management requirements will be included as part of the Environmental Management Plan.

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Measures to raise awareness and educate potential beneficiaries regarding safe pesticide handling and use of Integrated Pest Management: These measures are targeted at providing a framework for educating farmers regarding pesticides handling and promoting integrated pest management (IPM) and thus, understanding and managing pest problems in the horticultural sector, reducing human and environmental health risks associated with pesticide use, and protecting ecosystem by conserving beneficial agents such as natural enemies of pests and pollinators to increase productivity. The proposed activities would also cover field demonstrations with improved pesticides usage as well as IPM technologies. BTFEC will be the coordinator for the implementation of these activities.

The training will be focused on at least the following areas: Pest characteristics Control measures, including IPM approaches in horticultural sector, involving

agricultural, physical, biological, and chemical control methods Safety issues (for pest handling, transportation, usage and storage) Field demonstrations on Pest problems diagnosed and related IPM

opportunities identified in horticultural sector, pest management practices, including agricultural, physical, biological and chemical control methods

5.5.4 Physical Cultural Resources

While the project will follow the procedures in place by the RGOB for PCRs identified that may be impact due to project activities during the identification and preparation stages, for materials that may be discovered during project implementation, procedures to be used in chance findings is described in Annex 10. If PCRs have been identified that may get affected by the project activities, measure that will need to be put in place to project PCRs should be included as part of the environmental management plan for the site.

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Chapter 6 – Institutional Arrangements and Capacity

6.1 Institutional Arrangement

Institutional arrangement for social and environmental management has been designed in harmony of existing institutional system in the country and overall project and grant program implementation arrangement. The institutional entity and their roles and responsibilities are as follows.

National Environment Commission Secretariat (NECS): NECS is involved only in the higher risks projects and those for which NECS is the Competent Authority (See Annex 6). In the project within its mandate, NECS will review the Environmental Clearance applications including project Environmental Information (EI) and issue or deny Environmental Clearance. NECS is also responsible, as an EC issuance entity, for periodic and spot check for environmental compliance. NECS, if necessary, may delegate some of these functions to another agency including to DEC. NECS, as an apex agency in environmental assessment in Bhutan, has a role of overall watch dog and also providing need-based guidance and coordination in matters related to environmental management.

WCD Ministry of Agriculture and Forests. WCD Ministry of Agriculture and Forest is responsible for screening projects under its jurisdiction, for which it is the Competent Authority (see Annex 6.) WCD will issue Environmental Clearance for the project for which it is the CA, and is also responsible for periodic environmental monitoring for compliance and final environmental monitoring. WCD of MOAF will be also responsible in managing the social issues.

National Park Management (NPM). The role of NPM is overall oversight, coordination, and technical support. The environmental management related function of NPM include reviewing the environmental section of the pre-feasibility and feasibility studies, and checking the following: is the project eligible?, is it exempted from further environmental investigation?, is EI required for this? Who is the Competent Authority?

NPM will be responsible for collecting detailed environmental information of sub-projects for which EI and EC are required, as required by EAA, RECOP and Application Guidelines for Environmental Clearances. EI, where, required will be prepared prior to project DPR so that EI feeds into the DPR. NPM in coordination with DEC will also plan and organize environmental orientations, awareness, and training. NPM may enhance its capability by engaging environmental consultant for such services.

District/ Dzongkhag Environmental Committee (DEC). DEC will be responsible for collecting preliminary environmental information of project and its locality during pre-feasibility/ feasibility stage. DEC will write environmental section of the pre-feasibility/ feasibility report. DEC will ensure that all No Objection Certificates are obtained. DEC also supports project supervision team in supervising and recording environmental mitigation activities. DEC also will support site-supervision team in reviewing and approving Implementer's/ Contractor's Construction Site Environmental Management Plan.

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Dzongkhag and local Community. During pre-feasibility/ feasibility and during EI preparation stage, Dzongkhag and local community will help the DEC and/ or NPM in obtaining environmental information, share their observations and insights, concerns and suggestions, and in securing NOCs. During project implementation, they will observe the construction activity and report any non-compliance or grievances.

Implementer and/or Contractor. Application Guidelines for Environmental Clearance requires implementers’ and/ contractor to have Construction Site Environmental Management Plan. Implementer/ contractor will prepare such plan and have it approved by Site-Incharge before beginning construction. Implementer/ contractor will consult site supervision team, and Dzongkhag and community and conduct joint walk-through while preparing such plan.

6.2 Capacity Assessment and Strengthening

Consultations and interactions with various stakeholders including MoAF, DECs, NGOs and communities revealed that inadequate capacity at various levels is a constraint in effective and efficient environmental management of the project. Although Bhutan's environmental legislation requires ministries to establish an environmental unit, there is no environmental unit at the MOAF yet. WCD of the ministry has been assigned the environmental CA function. There is no environmental staff at the ministry or WCD. Capacity of NECS is adequate for the type of activities envisaged under the project: but NECS staffs are already overstretched. DEC has an Environmental Officer deputed from NECS in recent times. At present, NECS and WCD both have not been able to carry out periodic monitoring and spot check at desirable levels. The DEC Environmental Officer is responsible not only for Dzongkhag's activities but also asked to support various line agencies. The Environmental Officer is obviously very busy and overloaded. There is good awareness of environmental process at the Dzongkhag level due to orientations organized by NECS and projects. Dzongkhags and communities knowledge and insights of local environment are very good, but their ability to prepare documents that is required by the legislations and guidelines is very low. Contractors also lack capacity in preparing the construction site environmental management plan.

In order to overcome the capacity weaknesses identified above, the project will include the following specific measures for strengthening capacity:

Table 6: Need based training and seminar:Type of Training/ capacity

buildingDuration Target Group Institutions Expected results

Training on basic GIS and environmental Assessment

1 month DoL, NSSC, WMD and Forest Officers of the project area

To be identified A well established database system of the project area

Training/workshops on Waste Management

1 month Stakeholders of the project Area, Forest Officers,

NECS, Tourism Council of Bhutan (TCB)

A well informed stakeholders on waste management system

Training on Environmental Leadership

2 week Forest Officers of Project area

To be identified A well informed forest officers on environmental management system

Awareness workshop on 1 month Community and local Department of A well prepared community

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Community Patrolling stakeholders Forests and Parks (DFP)

on how to patrol for illegal poachers

Awareness program on firewood consumptions and alternative technology

10 days Community schools and local stakeholders

NECS and DFP Reduction of fuel wood consumption in the project area

Training on Sustainable Harvesting of High altitude medicinal plants

1 week Community and Forest Officers

Indigenous Hospital and DFP

Good harvesting technique and providing sustainable livelihood approach

Awareness on soil conservation

1 week Stakeholders and local communities

NSSC and DFP Well managed soil conservation

Training program on ecotourism and community tourism

10 days Local Communities TCB and NRED A well prepared ecotourism system by the local communities

Basic training on responsible tourism and as service industry

10 days Local Communities TCB and NRED A well prepared ecotourism system by the local communities

Training on Environmental Education

2 weeks Community schools, local stakeholders and forest officials

NECS A well informed teachers and communities

Capacity building on species conservation

2 week Community schools, local stakeholders and forest officials

DFP, NBC and NRTI

A well trained stakeholders on local species conservation

Study Tour on best practices of highland pasture management

2 week Local stakeholders and forest officials

To be identified A well informed stakeholders and forest officials

Basic training program on Environmental Impact Assessment (EA)

4 week Local stakeholders and forest officials

NECS A well trained stakeholders on environmental assessments

Strengthen environmental competency through provision of human resources. Recruitment of an Environmental Specialist/ consultant to support NPM in various environmental functions described in previous sections. The specialist support may be needed more in the initial stage due to preparatory works, system/tools establishment, and orientations/training. The input could be gradually reduced.

Communities and contractor will need to be trained or made aware in various activities assigned to them: this could be done through need-based support by hiring short-term consultants.

Organizing targeted and need-based awareness, orientations and training tailored to the needs of different stakeholders including awareness to project community, practical training to contractors/implementers and site supervision team/staff, and orientations to project stakeholders at centre and districts.

Engaging private sector or NGO or local organization such as School Nature Clubs for certain type of environmental activities, for example for monitoring and awareness raising in the project/project area.

NECS and/or WCD MOAF may access project fund for engaging NGO or private sector for performing periodic compliance monitoring of project. Project may also support hiring short-term consultant, if needed; to support DECs in doing project's environmental management works.

Reviewing environmental consequences and performance of already built similar structures for lesson learning purpose, dissemination of the lessons, and refining the approaches and guidelines.

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Annex 1. List of officials and stakeholders

Laya Gewog, Gasa (12-13, July 2012)Sl. No. Name Gender Village From vulnerable

householdGroup Discussion

1 Kinley Dorji Male Lungo No2 Chhimi Dema Female Lupcha No3 Pema Thinley Male Lupcha No5 Rinchen Male Pashi No6 Sangay Tenzin Male Neylu No7 Phurpa Lhamo Female Lupcha No8 Lhaba Tsering (Tshoga) Male Lungo No9 Passang (Tsogpa) Male Tongra

Household Interview1 Dendup Male Tongra No2 Tenzin Male Longu No3 Lhakpa Sithup (Tsogpa) Male Toko No4 Pemba Male Lungo No5 Lhaba Tshering Male Pashi No6 Bidha Female Neylu No7 Kinley Lhadon Female Lupcha No8 Pema Tshering Male Lupcha No9 Khando Male Neylu No

10 Wangyel Male Toko No11 Pey Male Lukcha No12 Wangyel (Tshopa) Male Neylu No

Goenkhamae Gewog, Gasa (14th July, 2012)Sl. No. Name Gender Village From vulnerable

householdGroup Discussion

1 Karma Tsherin (Gup) Gayza2 Phub Lhamo Female Khailo No3 Tshering Female Khailo No4 Namgay Male Gayza No5 Shaya Dorji Male Jabisa No6 Penjor Male Damji No7 Zeko Male Damji No

Household Interview

1 Nim Dem Female Khailo No2 Zam Female Thangkha Yes3 Gyem Lhamo Female Zomina Yes4 Kinley Male Bajina Yes5 Pachu Dem Female Damji Yes

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6 Tshering (shopkeeper) Male Khailo No7 Namgay Tshering Male Tsahithang No8 Ugyen Tshering Male Yemina No

Goenkhatoe Gewog, Gasa (15th July, 2012)Sl. No. Name Gender Village From vulnerable

householdGroup Discussion

1 Kaka (tsogpa) Male Remi No2 Pema Dorji(Gup) Male Choley No3 Lham Tshering Male Tsepgang No4 Dorji Male Choley No5 Thinley Mo Female Remi No6 Tshering Dendup Male Baychhu No7 Dema Female Baychhu No

Household Interviews1 Tashi Chophel Male Tsepgang No2 Dorji Male Choley No3 Karma Male Tsheringkha Yes4 Sangay Dem Female Tsepgang Yes5 Gyem Lham Male Mani Yes6 Tashi Male Baychhu No7 Bago Male Choley No8 Santen Wangchuk Male Tsepgang No9 Chador Male Mani No

10 Gaki Female Baychhu No

Lunana Gewog, Gasa (16th July, 2012)Sl. No. Name Gender Village From vulnerable

householdGroup Discussion

1 Gyam Tshering Male Haide No2 Kaka Male Thangza No3 Lungten wangmo Female Threlga No4 Ugyen Penjor Male Ramina No5 Dawa Male Haide NO6 Yangzom Female Threlga No

Household Interview1 Drawo Male Tshozhong No2 Rinchen Dorji Male Tenche No3 Selden Male Tshozhong No4 Dorji Bider Male Threlga No5 Gyem Tshering Male Remina No6 Kinley Zam Female Thangza No7 Pema Female Remina No8 Pem Gyam Female Thangza No

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Lingshi, Thimphu (19, July 2012)Sl. No. Name Gender Village From vulnerable

householdGroup Discussion

1 Wangdi (Gup) Male Gangyuel No2 Rinzin Sither Male Miseryul No3 Jigme Choden Female Zangbuel thang No4 Kencho Goenpo Male Gayphug No5 Pema Dema Female Khangyul NO6 Tenzin Namgyel Male Lhalung No7 Samten Choden Female Shayul No

Household Interview1 Thinley Lhendup Male Khangyul No2 Kencho Edon Female Lhalung No3 Yeshi Dorji Male Chhuzurkha No4 Norbu Rinzin Male Gangyul No5 Dorji Wangmo Female Shayul No6 Karma Dorji Male Gangyul No7 Tsering Wangdi Male Khangyul No8 Rinchen Dendup Male Zangbuelthang No

Naro Gewog, Thimphu (20th July, 2012)Sl. No. Name Gender Village From vulnerable

householdGroup Discusssion

1 Wangchuk (Gup) Male Tasithang No2 Phub Dorji (tsogpa) Male Naro No3 Dema Female Barshong No4 Jigme Male Tegithep No5 Thsewang Dorji Male Gulona No

Household Interview1 Rinchen Tshering Male Sichhu No2 Tshering Male Jagaythang No3 Karma Choden Female Barshong No4 Chimbi Male Mentsiphug No5 Yeshi Dorji Male Yumthang No7 Dechen Dema Female Thangkana No8 Gangla Male Naro No

Soe Gewog, Thimphu (22nd July, 2012)Sl. No. Name Gender Village From vulnerable

householdGroup Discussion

1 Chhimi Dorji (Mangme) Male Jangothang No2 Passang Dorji Male Zomphu No

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3 Zangmo Female Jangothang No4 Chencho Male Dozoten No5 Yangki Lhamo Female Tekithang No6 Tshering Peljor Male Damgochong No

Household Interview1 Nidup Tshering Male Dotarithang Yes2 Tshering Lham Female Jumphu Yes3 Dorji Wangmo Female Damgochong No4 Phurpa Dorji Male Tekithang No5 Pema Khando Male Dogyel Lachu No6 Pelzom Female Zomphu No7 Ugyen Dorji Male Dozoten No

Nubi Gewog, Trongsa (23rd-24th July, 2012)Sl. No. Name Gender Village From vulnerable

householdGroup Discussion

1 Thuba (Mangme) Male Bimji No2 Wangchuck (Tsogpa) Male Jangthang No3 Palden Lhendup (Tsogpa) Male Semji No4 Kezang Jurmi (Tsogpa) Male Dorjen No5 Dawa Gyeltshen (Tsogpa) Male Sinphu No6 Chimi Dukpa (Tsogpa) Male Bimji No

Household Interview1 Pem Dem Female Drezhig Yes2 Tsang Tsa Male Sinphu Yes3 Kinley Wangmo Female Thangngyel Yes4 Leki Wangmo Female Thangngyel Yes5 Katamo Female Kaba Yes6 Chogay Male Bimji Yes7 Sumcho Female Ganthang Yes8 Buthimo Female Bjee Trong Yes9 Lemo Female Bjee Yes

Tang Gewog, Bumthang (24th-25th July, 2012)Sl. No. Name Gender Village From vulnerable

householdGroup Discussion

1 Dechen Zangmo Female Jamshong No2 Jamtsho Male Chutey No3 Tshering Dorji Male Khangrab No4 Choni Dorji Male Chutey No5 Pema Lhamo Female Khangrab No6 Rinchen Lhamo Female Khangrab No

Household Interview1 Ugyen Dema Female Gamling Yes

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2 Leki Dema Female Tandingang No3 Ugyen Lhamo Female Tandingang Yes4 Duba Male Tandingang No5 Phurba Male Chutey Yes6 Phub Wangmo Female Khangrab Yes7 Pema Wangdi Male Khangrab No8 Pangla Male Tandingang No

Bumdeling Gewog, Trashi Yangtse (27th July, 2012)Sl. No. Name Gender Village From vulnerable

householdGroup Discussion

1 Tshering Gyeltshen Male No2 Sonam Dendup Male Tarphel No3 Dechen wangmo Female Traphel No4 Lobzang Pema Female Signphel No5 Phurba Tshering Male Chang No6 Tshering dema Female Tsaling N 07 Dorji Gyeltshen Male Ngangteng No8 Sangay Gyeltshen Male Zhapang No9 Ugyen Dema Female Ngangteng No

10 Tshering Choden Female Pangkhar NoHousehold Interview

1 Tenzin Deki Female Tarphel No2 Cheki Dorji Male Lamdra No3 Karma Male Tarphel No4 Pema Gyelpo Male Betsamang No5 Pema Tsewang Male Ngalemang No6 Shedra Namgyel Male Bumdeling No7 Mani Zangmo Female Teney No8 Choney wangmo Female Khenkhar No9 Wangdi Male Ngalemang No

10 Bumpa Lhamo Female Phanteng No11 Sangay Drukpa Male Singphel No12 Lhakpa Tshering Male Singphel No13 Thangyey Wangmo Female Bamdel No

Sherimung Gewog (28th-29th July, 2012)Sl. No. Name Gender Village From vulnerable

householdGroup Discussion

1 Tashi Dorji (Gup) Male Soenakhar No2 Dechen Gyalpo Male Yarab No3 Tshomo Female Jabgang No

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9 Thukten Male Thramo No5 Choney Jamtsho Male Thiling No6 Ugyen Zangmo Female Muhung No7 Dolma Female Drongphu No

Household Interview1 Kezang Namgay Male Yarab Yes2 Rinchen Female Soenakhar Yes3 Sangay Dorji Male Drongphu No4 Sangay Wangmo Female Serzhong No5 Tashi Tobgay Female Gangmung No6 Tshewang Male Shiling No7 Sangay Wangmo Female Soenakhar No8 Tshewang Dorji Male Soenakhar No

Khoma Gewog, Lhuntse (30th July, 2012)Sl. No. Name Gender Village From vulnerable

householdGroup Discussion

1 Sither Tshering (Gup) Male No2 Lungten Female Sinphu Yes3 Yeshi Tshewang Male Khoma Yes4 Jamtsho Male Rongmateng No5 Kuenzang Dolma Female Rongmateng No6 Jigme Dorji Male Goenpa Karpo No7 Sonam Pelmo Female Goenpa Karpo No8 Goenpo Male Nylamdung No

Household Interview1 Pema Wangmo Female Khoma Yes2 Machemo Female Khoma Yes3 Dorji Choden Female Pangkhar Yes4 Pemo Female Pangkhar Yes5 Gaydenmo Female Pangkhar Yes6 Jigmela Male Pangkhar Yes7 Jangchub Dorji Male Taya No8 Sonam Wangdi Male Serphu No9 Ugyen Wangdi Male Pamgkhar No

10 Dechen Palden Female Pangkhar No

Chhokhor Gwog, Bumthang (2nd August, 2012)Sl. No. Name Gender Village From Vulverable

householdGroup Discussion

1 Pema Tshering (Tsogpa) Male Dhur No2 Lemo Female Dhur No3 Tashi Tshering Male Lusabe No4 Sonam Phuntsho (Tsogpa) Male Kharsa No

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5 Tashi Wangmo Female Kharsa No6 Ugyen Thinley Male Thangbe No7 Thsering Dorji (Tsogpa) Male Dorjibe No8 Tashi Wangmo Female Goling No

Household Interview1 Sonam Yangchen Female Dhur No2 Jemba Male Kharsa No3 Wangchuk Dema Female Kharsa No4 Chekey Lhendup Male Changwang No5 Gorden Male Dawathang No6 Sonam Tshering Male Dhur No7 Tashi Lhamo Female Nasphel No8 Kuenga Phuntsho Male Zhebjaythang

Sephu Gewog, Wangduephodrang (3rd – 4th August, 2012)Sl. No. Name Gender Village From Vulverable

householdGroup Discussion

1 Sangay Dorji (Mangme) Male Bimbilo No2 Lam Dorji (Tsogpa) Male Buso No3 Phurba (Tsogpa) Male Naldra No4 Mani (Tsogpa) Male Rukubji No5 Pema (Tsogpa) Male Bimbilo No6 Rinchen (Tsogpa) Male Longtey No

Other people met during the field consultation from 11th July - 4th August, 2012

Sl. No. Name Gender Designation Organization

1 Duptho Male Member of Parliament Bumdeling-Jamkhar2 Pangkey Dukpa Male Park Manager BWS3 Tashi Male Forester Sherzhong Range, BWS4 Kinley Phuntsho Male Gewog Adm Officer Gangzur Gewog5 Tashi Dorji Male Forestry Officer WCP6 Phub Dorji Male Deputy Ranger Officer WCP7 Ratan Giri Male Forester Sephu Range, WCP8 Tenzin Male Assistant Forestry Officer Chokhor Range, CWP

9 Leki Wangdi Male Forester Laya Range, JDNP10 Jigme Lhaden Female Forester Khoma Range, BWS11 Pema Thinley Male Sr. Ranger Officer JDNP12 Karma Jamtsho Male Assistant Forestry Officer Gasa Range, JDNP

13 Dargay Male Sr. Ranger Officer Lingshi Range, JDNP14 Damcho Dorji Male Sr. Ranger Officer GFEA, Lingshi

15 Namgay Dorji Male Assistant Forestry Officer JDNP

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16 Phub Tshering Male Deputy Range Officer Lingshi Range, JDNP

17 Yonten Male Forester Soe Range, JDNP

18 Pema Dorji Male Assistant Forestry Officer Soe Range, JDNP

19 Sonam Younten Male Deputy Ranger Officer Laya Range, JDNP

20 Sangay Dorji Male Forester Gasa Range, JDNP

21 Jangchuk Dorji Male Sr. Range Officer Sherzhong Range, BWS

22 Sangay Drakpa Male Sr. Range Officer Bumdeling Range, BWS

Table: Summary of Primary Stakeholders Consulted at the Local Level Gewog No. of

peopleMale Female Belonging to

Vulnerable Household

Focus Group Discussion No. % No. % No. %

Laya (JDNP) 9 7 77.8 2 22.2 0 0.0

Goenkhamae (JDNP) 7 5 71.4 2 28.6 0 0.0

Goenkhatoe (JDNP) 7 5 71.4 2 28.6 0 0.0

Lunana (WCP) 6 4 66.7 2 33.3 0 0.0

Lingshi (JDNP) 7 4 57.1 3 42.9 0 0.0

Naro (JDNP) 5 4 80.0 1 20.0 0 0.0

Soe (JDNP) 6 4 66.7 2 33.3 0 0.0

Nubi (WCP) 6 6 100.0 0 0.0 0 0.0

Tang (WCP) 6 3 50.0 3 50.0 0 0.0

Bumdeling (BWS) 10 5 50.0 5 50.0 0 0.0

Sherimung (BWS) 7 4 57.1 3 42.9 0 0.0

Khoma (WCP) 8 5 62.5 3 37.5 2 25.0

Chhokhor (WCP) 8 5 62.5 3 37.5 0 0.0

Sephu (WCP) 6 6 100.0 0 0.0 0 0.0

Household Interviews No. % No. % No. %

Laya (JDNP) 12 10 83.3 2 16.7 0 0

Goenkhamae (JDNP) 8 4 50.0 4 50.0 4 50

Goenkhatoe (JDNP) 10 8 80.0 2 20.0 3 30

Lunana (WCP) 8 5 62.5 3 37.5 0 0Lingshi (JDNP 8 6 75.0 2 25.0 0 0

Naro (JDNP) 8 6 75.0 2 25.0 0 0

Soe (JDNP) 7 4 57.1 3 42.9 2 28.6

Nubi (WCP) 9 2 22.2 7 77.8 9 100

Tang (WCP) 8 4 50.0 4 50.0 4 50

Bumdeling (BWS) 13 8 61.5 5 38.5 0 0

Sherimung (BWS) 8 4 50.0 4 50.0 2 25

Khoma (WCP) 10 4 40.0 6 60.0 5 50

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Chhokhor (WCP) 8 5 62.5 3 37.5 0 0

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Annex 2. Summary of consultation

Out of 207 households, the team identified that 26 households is likely to be affected due to the projects. Although this just an assumption made during the consultation but this can only be verified once the project area is identified. The main assumption of these affected households are due to small land holdings and will have minimal negative impacts.

Geogs HH #

Concern Responses Responsibility

Khoma 2 1 HH small land holding1 HH disabled lady

Awareness program as well as to avoid or minimize land to be taken for the project from the affected ones

NPM, National Land Commission (NLC)

Sherimung 2 Small land holding - do - NLCTang 4 Small land holding - do - NLCNubi 9 5 HH small land holding

4 HH single parent- do - NPM, NLC

Soe 2 Small land holding - do - NLCGoenkhatoe 3 Small land holding - do - NLCGoenkhamae 4 3HH Small land holding

1 HH single parent- do - NPM, NLC

The consultative meeting was held with the representative of the following gewogs:1. Laya Gewog, Gasa, 2. Goenkhamae Gewog, Gasa, 3. Goenkhatoe Gewog, Gasa, 4. Lunana Gewog, Gasa, 5. Lingshi Gewog, Thimphu, 6. Naro Gewog Thimphu, 7. Soe Gewog Thimphu, 8. Nubi Gewog, Trongsa, 9. Tang Gewog, Bumthang, 10. Bumdeling Gewog Trashi Yangtse, 11. Sherimung Gewog Monggar, 12. Khoma Gewog, Lhuntse, 13. Choekhor Gewog, Bumthang and 14. Sephu Gewog, Wangdiphodrang

Laya Gewog, Gasa (12th-13th July, 2012)Perception and Understanding of the ProjectThe people participated in the field consultation meeting and interview were familiar with the proposed project activities for the sustainable financing for biodiversity conservation and natural resources management of the HANAS areas. Majority of the local community got similar activity support, although, smaller in magnitude from the government and other organization like HEVETAS. Distribution of fodder tree seedlings, fodder grass seeds, portable milk processing equipments, solar power, fodder grass cutter, breeding bull and certain quantity of barbed wire for fencing were some of the activity support provided in the past to the people of Laya. The participants also expressed the importance of establishing community forest and its associated social and economic benefits for future generation. So, the people of Laya

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feel that the proposed project will bring them immense benefits in improving their socio-economic as well as reducing pressure to the forestry resources. Social ImpactThe people consulted were unable to relate any significant negative impacts from the proposed project; rather they felt that the project would definitely improve their socio-economic conditions through development of pasture, supply of more number of breeding bull and better breed of yak, distribution of high yielding fodder tree seedlings, fodder grass seeds, promotion of organic farming and vegetable production, and yak product diversification. To encourage the discussion on potential adverse social impacts, few scenarios such as social disharmony among communities due to inequitable sharing of project benefits. To this, the Gup responded that the benefits will be distributed on the priority basis taking into consideration the economic condition of the household in consultation with other local GYT members in the gewog as well refer to the past list of beneficiary. When asked about the increasing incidences of livestock depredation by the wild predators and more people coming in conflict with wild animals, they informed that they have a very strong agreement signed between the community and the Gewog Administration not to indulge in killing wild animals at any cost. While discussing on this issue, the gup brought out the problem of not being able to acquire environmental clearance for the construction of farm road from Gasa to Laya which has been approved by the GYT and DYT. In consulting with the JDNP officials on this matter, it was reported the environmental clearance for the construction of road was denied as the proposed farm road passes through the Takin corridors in Tsarijathang. The gup also expressed his unsatisfaction over the allotment of natural resources, especially, the timber resources for the construction of community service centers in the gewog.

Dispute ResolutionsAny nature of disputes in the community is first resolved by the tsogpa of the village. If the dispute is not able to settle at the village level, the tsogpa forwards the case to the gewog level, where the gup and mangi collectively attempt to resolve the disputes. If the dispute is not settled at the gewog level, then the case is forwarded to Dzongkahg Thrimkhang (District Court) and subsequently, it goes to High Court and eventually to the Supreme Court for appeal if the person is not satisfy with the judgments passed by the lower courts. Majority of the disputes are of petty in nature and get resolved either at the village level or gewog level. Only those cases which are serious in nature get forwarded to the higher courts.

Offences related to the forestry and wildlife is being dealt by the forestry officials. Almost all the cases get resolved at the Range Office level by the Range Officer. In the event of case being not able to resolve at the Range level, then it is forwarded either to park head office or territorial division head office or subsequently to respective district court.

Role of GYT, RNR and Park OfficialsGYT members felt that the project would be best managed and implemented by the park office with close collaboration with the gewog administration. However, they strongly felt that the GYT members should be actively involved in terms of collaboration and coordination in planning and implementation so that the project activities provide maximum benefits to the community and it fits into the overall

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gewog five year plan and also in keeping with the mandate entrusted by the GYT Chathrim 2002. The gewog RNR and park officials informed that the project will immensely support to achieve their regular plan activities to enhance the rural socio-economic and they see their role as immediate technical guide and assistance to the local people. The park official feels that they will gain additional cooperation from the local community in managing the natural resources and biodiversity conservation through this project. In terms of monitoring both social and environmental impacts, they would assist the GYT in preparing the monitoring framework for the impact assessment.

Vulnerable GroupWhen asked about the number of household vulnerable in the gewog, tsogpa and gup uprightly responded that none of the household in laya gwog is vulnerable as of now. This is mainly due to the legalization of cordyceps collection in 2004 by His Majesty the fourth Druk Gyalpo, Jigme Singye Wangchuck. The local communities make adequate income from the sale of cordyceps annually to sustain and lead a comfortable life in terms of recurrent food, cash and expenditure for their school going children. In terms of ethnicity, the communities are all layaps, considered as bjobs, and cannot be differentiated as being socially or culturally distinct from one another.

Goenkhamae Gewog, Gasa (14th July, 2012)Perception and Understanding of the ProjectThe people participated in the field consultation meeting and interview were familiar with the proposed project activities for the sustainable financing for biodiversity conservation and natural resources management of the HANAS areas. Many people from the community were involved in the agriculture product enhancement program supported by UNDP where the households were distributed potato seeds and other vegetables to increased organic farm product from the gwog. Few of the people also got training in farmyard manure preparation from the locally available raw materials. Some farmers were sent for in-country study tour to get exposed to farming and livestock rearing practices and dairy management cooperatives. Also the community forest management was another component of the study tour for the farmers. Barbed wire for fencing was distributed from CDG and it has proved very helpful in reducing the crop raiding by wild boar, sambar and barking deer. Trenches around the agriculture field was also dug with the support of some project to deter wild ungulates from crop depredation but it was not so successful, rather it has proved very fatal for the livestock. The local communities of Goenkhamae are infact very excited to grab the project opportunity to enhance their socio-economic and income generation. Social ImpactNone of the people consulted were unable to relate any significant negative impacts from the proposed project; rather they foresee tremendous benefits from the proposed project in improving their socio-economic conditions. The proposed project would help the community to reduce unproductive cattle by promotion of artificial insemination, distribution of breeding bull, and jersey. This will help minimize the human wildlife conflict in the gewog. Development of silvo-pasture and promotion of agricultural products through distribution of potato and vegetable seeds like asparagus, mushroom cultivation, and increased training on the preparation and use of organic manure and natural weed control to promote organic farm products. The issue

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of inequitable sharing of project benefits can be resolved through priority ranking and establishing the practical criteria by GYT in collaboration with RNR and park officials.

Dispute ResolutionsAny nature of disputes in the community is first resolved by the tsogpa of the village. If the dispute is not able to settle at the village level, the tsogpa forwards the case to the gewog level, where the gup and mangi collectively attempt to resolve the disputes. If the dispute is not settled at the gewog level, then the case is forwarded to Dzongkahg Thrimkhang (District Court) and subsequently, it goes to High Court and eventually to the Supreme Court for appeal if the person is not satisfy with the judgments passed by the lower courts. Majority of the disputes are of petty in nature and get resolved either at the village level or gewog level. Only those cases which are serious in nature get forwarded to the higher courts.

Offences related to the forestry and wildlife is being dealt by the forestry officials. Almost all the cases get resolved at the Range Office level by the Range Officer. In the event of case being not able to resolve at the Range level, then it is forwarded either to park head office or territorial division head office or subsequently to respective district court.

Role of GYT, RNR and Park OfficialsGYT members felt that the project would be best managed and implemented by the park office in close collaboration with the gewog administration. However, they strongly felt that the GYT members should be actively involved in terms of collaboration and coordination in planning and implementation so that the project activities provide maximum benefits to the community and it fits into the overall gewog five year plan and also in keeping with the mandate entrusted by the GYT Chathrim 2002. In terms of project activity fund disbursement, they felt that the park authority needs to consult and seek prior approval from the GYT. Also, they felt that the monitoring of the project activity and achievement should be done by the donor agency. The gewog RNR and park officials informed that the project will immensely support to achieve their regular plan activities to enhance the rural socio-economic and they see their role as immediate technical guide and assistance to the local people. The park official feels that they will gain additional cooperation from the local community in managing the natural resources and biodiversity conservation through this project. In terms of monitoring both social and environmental impacts, they would assist the GYT in preparing the monitoring framework for the impact assessment.

Vulnerable GroupAlthough majority of the people in the community are self sufficient and average income group with few households considered rich by the village standard based on the size of land holdings and annual income generated. Tsogpa and gup guesstimated that are about four households appropriately fall into the vulnerable group due to limited land holding and female headed household with young children. Generally, people in the gewog are not differentiated into any communal group and none of the people are socially and culturally vulnerable.

Goenkhatoe Gewog, Gasa (15th July, 2012)

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Perception and Understanding of the ProjectMany of the people who participated in the stakeholders meeting were able to recall the activities that they have implemented in the past from the regular RGoB funbding as well as few donor supported project. During the discussion, the people could perceived that the project was about improving their socio-economic through improved agriculture, pasture/tsamdo development, livestock product enhancement and rural enterprise development and at the same time about the conservation and improvement of their natural environment. They attach great deal of importance to environmental protection and prevention of forest and land degradation for long term benefits and ecosystem sustenance. These people were also provided and implemented similar agriculture and livestock program activities from the regular RGoB finance but in small scale. Plantation of mani ruta (Saussurea lappa),a medicinal plant has also taken up with support of dazongkhag forestry sector and now people are facing difficulty in marketing the products as they couldn’t find buyers other than ITMS.

Social ImpactPeople hardly envisage negative impacts from the proposed project; rather they foresee tremendous benefits that would contribute towards realizing the overarching goal of gross national happiness. People felt that the reduction of unproductive cattle and improved pasture development near their household will reduce the issue of human wildlife confrontation in the gewog. Support for the renovation of Lhakhangs and sacred sites (neys) will ensure the timely onset of monsoon rains for the farm works and good harvest annually to compliment the efforts being made from the agriculture sector by providing high yielding cereals and vegetable seeds.

Dispute ResolutionsNormally, disputes among the communities are very few and mostly get resolved at the local level. Dispute in the community is first resolved by the tsogpa of the village. If the dispute is not able to settle at the village level, the tsogpa forwards the case to the gewog level, where the gup and mangi collectively attempt to resolve the disputes. If the dispute is not settled at the gewog level, then the case is forwarded to Dzongkahg Thrimkhang (District Court) and subsequently, it goes to High Court and eventually to the Supreme Court for appeal if the person is not satisfy with the judgments passed by the lower courts. Majority of the disputes are of petty in nature and get resolved either at the village level or gewog level. Only those cases which are serious in nature get forwarded to the higher courts.

Offences related to the forestry and wildlife is being dealt by the forestry officials. Almost all the cases get resolved at the Range Office level by the Range Officer. In the event of case being not able to resolve at the Range level, then it is forwarded either to park head office or territorial division head office or subsequently to respective district court.

Role of GYT, RNR and Park OfficialsGYT members felt that the project would be best managed and implemented by the park office in close collaboration with the gewog administration. However, they strongly felt that the GYT members should be actively involved in terms of collaboration and coordination in planning and implementation so that the project activities provide maximum benefits to the community and it fits into the overall

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gewog five year plan and also in keeping with the mandate entrusted by the GYT Chathrim 2002. The gewog RNR and park officials informed that the project will immensely support to achieve their regular plan activities to enhance the rural socio-economic and they see their role as immediate technical guide and assistance to the local people. The park official feels that they will gain additional cooperation from the local community in managing the natural resources and biodiversity conservation through this project. In terms of monitoring both social and environmental impacts, they would assist the GYT in preparing the monitoring framework for the impact assessment.

Vulnerable GroupTsogpa and gup couldn’t identify any vulnerable household from the gewog as they are all average income people and none of them hit badly so far by any sort of disaster or tragedy. People in the gewog are not differentiated into any ethnic group and none of the people are socially and culturally vulnerable.

Lunana Gewog, Gasa (16th July, 2012) Perception and Understanding of the Project

Based on the views put forth by the people participated in the consultative meeting, it indicates that the local communities of Lunana haven’t had the opportunity to implement any project activities except the distribution of breeding bull. So, the people have limited knowledge about the proposed project activities but they are of the opinion that this proposed project will provide enormous benefits for the improvement of their socio-economic. Majority of them were worried about the loss of their livestock to the wild predators such as snow leopard and wild dog. When asked about the livestock compensation from the Wildlife Conservation Division and JDNP, they responded that none of them had received any sort of compensation so far. People felt that it may be because of remoteness of the area and inaccessibility for most of the time due to snow cover for verification of livestock kill on the spot.

Social Impact and Dispute Resolution

The participants for the meeting reported that people are migrating out of the gewog although at small numbers due to harsh climatic condition and limited scope for development with increasing income from the cordyceps collection. Their current route to market centers via Ganglakarchung remains under snow cover for most of the time posing serious impediments for the local community. Additionally, lack of electricity and road facilities were some of the socially connected issues that were raised during the meeting which might forced people to migrate out from the gewog in search of better facilities. In view of the above, the meeting participants felt that there are lots of positive benefits from the proposed project that would help retain people in the gewog and make the life more comfortable. Majority of them were desperately proposing feeder road via Punakha and electrification in the gewog to reduce fuelwood consumption in addition to support for livestock and grazing land improvement through distribution of breeding bull, improved breed livestock and high yielding agricultural and vegetable seeds suitable for high altitude. Disputes among the local community are very few and are dealt in a similar fashion described for other gewogs.

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Role of GYT, RNR and Park Officials

GYT members felt that involvement of local people in planning the proposed project activities is the most essential part of the project implementation strategy that needs to adapted as the target beneficiary are local community. They also felt important to conduct stakeholder meeting to discuss the project activities and get it endorsed during the GYT meeting for better cooperation and coordination during the project implementation phase. Involvement of RNR and park officials for the project planning and implementation were seen as necessity for technical backstopping and guidance as the local community lack the required capacity. Also involvement of these officials guarantees their stay and more interaction with the local communities as it hardly happens at present due to harsh environmental conditions.

Vulnerable Group

Regarding vulnerable group in the gewog, the GYT members present in the meeting assured that there are no households falling in the category of vulnerable group as the local communities make substantial cash income annually from the cordyceps harvesting. Infact, the people of Lunana are financially advanced from majority of the people from other gewogs residing in the park as the cordyceps in their region are superior in terms of quality and quantity. Culturally, all the people of Lunana are considered of the same ethnicity.

Lingshi Gewog, Thimphu (19th July, 2012)

Perception and Understanding of the Project

Support for the distribution of solar power to every household on cost sharing basis (50% DoE and 50% JDNP), portable milk screamer unit, and fodder grass seeds for pasture development were some of the activities that the participants could described in the meeting after explaining the possible project activities from the proposed project. Similarly, people felt that the proposed project will bring huge benefits to the local community in terms of promoting livestock and agriculture productions through sustainable agriculture land and pasture development. They expect to reduce the loss of their livestock to the wild predators drastically with this upcoming project and could initiate livestock insurance scheme to reduce potential human wildlife conflicts in the gewog. The local community is also exploring to establish the community medicinal plant management groups to supply medicinal plant raw materials for ITMS. Social Impact and Dispute Resolution

People do not foresee any adverse negative social impacts from the proposed project activities rather they anticipate tremendous benefits that would contribute towards improvement of their socio-economic opportunities. People felt that the reduction of unproductive cattle and improved pasture development near their household will reduce the issue of human wildlife confrontation in the gewog. Support for the creation and maintenance of mule tracks and repair of bridges with RCC will greatly enhance the tourism opportunity and accessibility for local communities in the gewog. Hardly any disputes among households are expected from the proposed projects as

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they will get equal opportunity to participate in the projects with support of gewog administration, RNR and park officials. In case of disputes, proper resolving mechanism is in place and can be handled as per the procedures laid down in the gewog administration code of ethics.

Role of GYT, RNR and Park Officials

Here again, the GYT members felt that the project activities could be best implemented by the park authority as they have all the required technical capacities. However, they felt that activity planning should be developed in consultation with the local community and GYT members as the project has to benefit local people and need to fit into the gewog five year plan. RNR and park officials are ready to provide technical backstopping to the gewog administration for implementation and monitoring of the proposed project activities.

Vulnerable Group

Tsogpa and gup could identify only one vulnerable household that is needed to give special attention during the implementation of the proposed project. She is a disabled woman with a school going daughter and also has limited (20 decimal) land holding only. Rests of the households in the community are more or less having access to adequate income generation to run their family. There isn’t any person in the communities who are considered socially lower than others and are vulnerable.

Naro Gewog, Thimphu (20th July, 2012)

Perception and Understanding of the Project

People participated in the meeting could understand the proposed project activities very clearly as they have been receiving support from the government at smaller scale for the distribution of solar panel for lighting, portable milk processing equipment, heating stove (Bukhari) and barbed wire to fence the pasture land. They felt that the additional support for similar program activity would enhance the income generation opportunities as the livestock rearing is the main source of socio-economic sustenance for the local community of Naro. Support for the maintenance and creation of mule tracks, poultry farm development, installation of medicinal plant drying unit, incense processing unit, promotion and retrieval of traditional handicraft weaving from the yak hair, construction and maintenance of bridges with RCC, supply of electricity and restoration of degraded pasture and agriculture land due to frequent landslide are some of the activities proposed in the meeting.

Social Impact and Dispute Resolution

The meeting participants could not think of any negative social impact that would arise from the proposed project activity rather the project of this nature will bring more synchronization among the local communities as they need to come together for planning and implementation of the activity. They also foresee a scope for enhancing the rapport between forestry officials and community as the proposed project is gearing towards achieving sustainable conservation of high altitude ecosystem through promotion of livestock, agriculture and ecotourism programs which is also

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the main areas discussed for the 11th five year plan submitted to the government through GYT. However, the tsogpa of Naro gewog raised the danger of spreading bovine diseases to the wild animals if necessary precautions are not taken at the right time as they practiced a system of transhumance. Also, people felt that there is a need for establishing special conservation fund to compensate the livestock lost to snow leopard and wild dog as they lose significant number of livestock annually to these predators.

Role of GYT, RNR and Park Officials

GYT members felt that the proposed project would be best implemented with strong involvement of government officials especially the gewog RNR and park officials, however, they strongly felt that they should be actively involved in terms of collaboration and coordination in planning and implementation so that the project activities provide maximum benefits to the community and it fits into the overall gewog five year plan.

Vulnerable Group

In the meeting, we were informed that there are no people or household falls into the vulnerable categories as per the WB safeguard policies as they get adequate income from the sale of cordyceps and livestock products annually. In terms of land holding, all the households in the gewog have very limited agriculture land but they have been fortunate enough to receive 50 decimals of land kidu (grant) from His Majesty the Fifth King of Bhutan recently.

Soe Gewog, Thimphu (22nd July, 2012)

Perception and Understanding of the Project

In regards to project perception and understanding, the people gathered for the consultative meeting could vividly described few government supported activities such as distribution of grass seeds for pasture improvement and solar panel for lighting. However, they felt that the proposed project is going to bring enormous returns through enhancement of livestock programs and agriculture products and they are positively looking forward to implement it with the technical support from gewog RNR and park officials. People felt that the proposed project would help them to accelerate the achievement of their five year planned programs, which is mainly focus on agriculture and livestock product promotion.

Social Impact and Dispute Resolution

People hardly envisage any negative impacts from the proposed project; rather they foresee tremendous benefits that would contribute towards realizing the goal of self-sufficiency attainment through promotion of better agricultural technologies and livestock rearing opportunities. People felt that the reduction of unproductive cattle and improved pasture development near their household will help them to reduce winter fodder shortage and increase the livestock products subsequently. Role of GYT, RNR and Park Officials

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Similar to other GYT members, they too felt that they don’t have an adequate human resource capacity to handle the project separately by gewog administration. They would very much want to implement the project activities collaboratively for better success and impact. In terms of project activity planning, GYT would take a lead role in collaboration with park and RNR officials.

Vulnerable Group

Although none of the people are socially vulnerable but the people participated in the meeting identified two households that needs special attention during the planning and implementation of the proposed project.

Nubi Gewog, Trongsa (23rd – 24th July, 2012)

Similar to government supported projects implemented by other gewogs stated above, the people of Nubi gewog has also implemented project activity like distribution of CGI sheet for house roofing to some households with the financial support from WCP. Nearly 90% of the households in the gewog are covered with CGI sheet roofing either with the support from park office or self finance. Distribution of improved agricultural seeds, fodder grass seeds, fruit tree seedlings, construction and maintenance of irrigational canals are some of the other government supported project activities implemented in the gewog. People felt that they have good knowledge of implementing such project activities that might provide support from the proposed project.

The people participated in the consultative meeting could not identify any negative impact that would jeopardize the relations among the local communities. In regards to GYT, RNR and park officials’ role in project implementation, they felt the success of the project will depend on the strong involvement of local community at the project planning stage. The GYT members felt that their role is to coordinate and facilitate the project activity discussion and planning to derive maximum benefit which will have lasting impact for the community.

Nubi gewog reported maximum number of households in a vulnerable group that needs to be taken care while planning and implementing the proposed project activities. Majority of the vulnerable households belong to age group of more than 65 years and they have either no younger ones to look after or limited relatives to support them. They are already receiving assistance from HM’s office.

Tang Gewog, Bumthang (24th – 25th July, 2012)

In regards to project awareness and understanding, people of Tang seemed to have more exposure compared to other gewogs as they got an opportunity to implement SWISS supported project especially in the livestock sector. Many of the households were beneficiary of

Bumdeling Gewog, Trashiyangtse (27th July, 2012)

During the consultative meeting held in Bumdeling, the views of people on project awareness and understanding, social impact from the proposed project activities and

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system of dispute resolution weren’t different from the people of other gewog. Most of the people participated in the meeting were of the opinion that their income generating scope would be broadened with additional financial support for agriculture and livestock production enhancement programs. One of the new issues raised by the participants of the meeting was the submergence of wetland due to constant flood and landslide in Bumdeling areas posing serious threats not only to the winter roosting habitat for cranes as well as to the local community. Annually, 2-3 acres of paddy field are being lost to the floods despite constant protection works being carried out with the support of BWS. As of now, atleast 70-80% of productive paddy field is destroyed by the floods.

Mr. Duptho, Member of Parliament from Jamkhar Bumdeling consistency strongly felt the need to carry out detail study to understand the causes of flood in the area to help develop long term permanent solution. He was of the opinion that the temporary protection woks carried out with the support of BWS and other donors are not really solving this flood problem.

The local community felt that the gewog has huge potential to promote butterfly tourism in addition to cultural tourism as the place has lot renowned holy sites such as Rigsum Goenpa, Dechen Phodrang and Pemaling. The Bhutan Swallow Tail which was declared as national butterfly recently is found at Tarphel which is few hours walk from Bumdeling. Also, they felt that support in the promotion of mass production of special variety of chilly, locally known as worka bangala is another unique opportunity.

Few people were of the opinion that jersey, an improved breed of livestock, is not doing well in the gewog unlike other places and need for some study to point out the possible factors responsible for the failure of jersey rearing program. Sherimung Gewog, Mongar (28th – 29th July, 2012)

People participated in the meeting and individual interview had similar views on the project perception and understanding as well as social impact from the proposed project and dispute resolution system. Even for the role of GYT, RNR and park officials, they felt the same way as stated by other GYT members. The most prominent constraints pointed by the meeting participants were the shortage of water for drinking and irrigation as they have noted the drying up of water sources in the gewog. The reason they felt was due to scanty rainfall over past few years and could be attributed to climate variability impact as they have seen the forest cover increasing. Another problem increasingly faced by the community of Sherimung gewog is the heavy crop depredation by wild herbivores and ungulates such as wild boar, monkeys and porcupine. Annually, they lose half an acre to one acre of crop to these wild predators’ particularly wild boars and monkeys. Limited accessibility to market place is also one factor that has restricted the people’s interest to invest extra time in agricultural field. The main source of income needed for the sustenance of their family is drawn from working as daily wage labourer and engagement in petty works in the construction industry in other regions. It is reported that some of male member of the family never returned to their village in the process of accumulating cash income for family sustenance. They either get married in the place they worked or get employed in the construction industry as carpenter or mason. The gup and

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tsogpa reported that there are two households that falls within the vulnerable group and may have to consider additional attention during the project planning and implementation.

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Annex 3. Project area Gewog map

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Annex 4. National Policies and Acts

National Forest Policy, 1974 and National Forest Policy 2011

The essence of the National Forest Policy 1974 is primarily on conservation of forests and associated resources for their ecological values and secondarily on their exploitation for economic benefits but within the limits of sustainability. It hinges on the following four guiding principles:

Protection of the land, its forest, soil, water resources and biodiversity against degradation, such as loss of soil fertility, soil erosion, landslides, floods and other ecological devastation and the improvement of all degraded forest land areas, through proper management systems and practices;

Contribution to the production of food, water, energy and other commodities by effectively coordinating the interaction between forestry and farming systems;

Meeting the long-term needs of Bhutanese people for wood and other forest products by placing all production forest resources under sustainable management;

Contribution to the growth of national and local economies, including exploitation of export opportunities, through fully developed forest based industries, and to contribute to balanced human resources development through training and creation of employment opportunities.

National Forest Policy 2011. Consultation with communities is required. Construction of road through the established community forest may loose the naturally or artificially grown forest resources, which were managed by community forest management group. So, the loss of resources may have to be compensated as per the guidelines.

Forest and Nature Conservation Act, 1995

The first environmental legislation to be passed in Bhutan was the Bhutan Forest Act, 1969, which brought all forest resources under government custody with the intent to regulate forest utilization and control excessive forest exploitation. This law was repealed in 1995 with the enactment of the Forest and Nature Conservation Act (FNCA), 1995, in keeping with evolving conservation needs and to allow for community stewardship of forests. The objective of the FNCA is to “provide for the protection and sustainable use of forests, wildlife and related natural resources of Bhutan for the benefit of present and future generations”. It covers forest management, prohibitions and concessions in government reserved forests, forestry leases, social and community forestry, transport and trade of forestry produce, protected areas, wildlife conservation, soil and water conservation, forest fire prevention, and enforcement and penalties.

Forest and Nature Conservation Rules, 2000

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In accordance with the powers and duties conferred under the FNCA, the MoA has promulgated the Forest and Nature Conservation Rules (FNCR), 2000, for:

preparation, review, approval, implementation, monitoring and evaluation of forest management plans;

reservation of government reserved forests, allotment of land and land rights in government reserved forests, regulation of activities in lands allotted for private use, collection of forest produce from government reserved forests, compensation for acquired lands, prohibitions, restrictions and concessions in government reserved forests, and forestry lease;

creation of private and community forests, including procedures for registration of private and community forests and effects consequent upon registration, management and use of community forest resources, and responsibilities and powers of the community forest management group and concerned government agencies;

transport and trade of forest produce, including extraction and marketing procedures and inspection of forest produce in transit or in trade;

declaration of protected areas, administration of PAs , and prohibitions in PAs;

protection of wildlife and use of certain wild species;

prevention of forest fires, land clearance, and activities potentially impacting soil, water and wildlife resources; and

Enforcement and penalties for offences related to all of the above.

Environmental Assessment Act, 2000

The Environmental Assessment Act (EAA), 2000, establishes procedures for the assessment of potential effects of strategic plans, policies, programs, and projects on the environment, and for the determination of policies and measures to reduce potential adverse effects and to promote environmental benefits. The Act requires the RGoB to ensure that environmental concerns are fully taken into account when formulating, renewing, modifying and implementing any policy, plan or program as per regulations that may be adopted within the appropriate provision of the Act. It makes environmental clearance (EC)19 mandatory for any project/ activity that may have adverse impact(s) on the environment.

Based on the review of environmental information submitted by the project applicant, the National Environment Commission Secretariat (NECS) or the Competent Authority (CA)20 may issue/ deny EC or determine the need for a full environmental assessment (EA). Where a full EA is determined necessary, the applicant will be asked to prepare EA documents according to the terms of reference (ToR) approved by the NECS. On approval of the ToR by the NECS, the applicant is required to carry 19 Article 6.11 of the EAA defines Environmental Clearance as the decision, issued in writing by the NECS or the relevant Competent Authority, to let a project proceed, which includes terms (and conditions) to ensure that the project is managed in an environmentally sound and sustainable way.20 Article 6.2 of the EEA defines a Competent Authority as any agency of RGoB who has the power to issue development consent for a project.

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out a full EA and consequently submit the EA Report to the NECS. The NECS will review the EA report and accordingly issue/ deny EC.

The NECS or CA may issue EC when it is satisfied that: (a) the effects of the project on the environment are foreseeable and acceptable; (b) the applicant is capable of carrying out the terms of EC; (c) the project, alone or in connection with other programs/ activities, contributes to the sustainable development of the Kingdom and the conservation of its natural and cultural heritage; (d) adequate attention has been paid to the interests of concerned people; and (e) the project is consistent with the environmental commitments of the Kingdom.

EC for a project shall be reviewed and may be revised and renewed at least every five years, unless a shorter period is stated. The NECS or CA may review and modify the terms whenever there is: (a) unacceptable risks to the environment resulting from the project which were not known at the time the clearance was issued; (b) availability of improved and cleaner technology; and (c) a need to bring the project into compliance with changes to the laws of the country.

Non-compliance with environmental terms specified in the issuance of environmental clearance makes the offender liable to penalties that may include compensation for environmental damage, fines, sanctions, and suspension or revocation of environmental clearance in part or full.

Regulation for the Environmental Clearance of Projects, 2002

The Regulation defines responsibilities and procedures for the implementation of the EAA concerning the issuance and enforcement of EC for individual projects and to:

provide meaningful opportunities for public review of potential environmental impacts of projects;

ensure that all projects are implemented in line with the sustainable development policy of the Royal Government;

ensure that all foreseeable impacts on the environment, including cumulative effects are fully considered prior to any irrevocable commitments of resources or funds;

ensure that all feasible alternatives are fully considered;

ensure that all feasible means to avoid or mitigate damage to the environment are implemented;

encourage the use of renewable resources, clean technologies and methods;

ensure that concerned people benefit from projects in terms of social facilities;

help strengthen local institutions in environmental decision making; and

help create a uniform, comprehensive data base on the environmental and cultural conditions and assets in the country.

At the minimum, all EC applications must contain the following information:

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The potential adverse effects of the project on the environment including direct, indirect and cumulative effects;

How the project complies with relevant sectoral guidelines or codes of practices, if any, issued by the NECS or CA;

How the impacts of the project will be avoided, minimized or reduced; and

The environmental benefits of the project, including how the project will benefit concerned people and use clean and sustainable technologies.

All ECs must contain terms and conditions adequate to fully protect the environment and satisfy the requirements set forth in the Regulation. The EC shall be subject to and contingent upon public notice and the absence of any appeal within 30 days. At the minimum, the EC shall specify binding mitigation and compliance measures, and appropriate monitoring, recording and reporting requirements. Non-compliance with environmental terms prescribed in the issuance of EC makes the offender liable to penalties that may include compensation for environmental damage, fines, sanctions, and suspension or revocation of EC in part or full. The NECS or CA may renew the EC after expiry of its duration if the project is in compliance with the environmental terms or may change the terms and conditions at the time of renewal with a sound justification for such changes in writing to the holder.

The Act requires that all CAs establish an environmental unit to implement the EA process for projects/ activities assigned to them. The NECS may require the applicant to designate a focal person to ensure compliance with the terms of EC. All significant projects are required to establish an environmental unit responsible for ensuring compliance with the terms of EC.Annex 2 of the Regulation lists projects/ activities for which competent authorities have been assigned for screening and issuance/ denial of environmental clearance, and projects/ activities that do not require EC.

Regulation for Strategic Environmental Assessment 2000

The purpose of this regulation is to:

Ensure that environmental concerns are fully taken into account by all government agencies when formulating, renewing, modifying or implementing any policy, plan or programme, including FYPs;

Ensure that the cumulative and large scale environmental effects are taken into consideration while formulating, renewing, modifying or implementing any policy, plan or programme;

Complement project-specific environmental reviews as per RECOP and to encourage early identification of environmental objectives and impacts of all government proposals at appropriate planning levels;

Promote the design of environmentally sustainable proposals that encourage the use of renewable resources and clean technologies and practices; and

Promote and encourage the development of comprehensive natural resource and land use plans at the local, Dzongkhag and national levels.

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It outlines the duties of government agencies formulating, renewing, modifying, or implementing any policy, plan, or program, the principles of strategic environmental assessment, and essential contents of the environmental statement.

Sectoral Environmental Assessment Guidelines and ECOPs

The sectoral guidelines for EA were first formulated in 1999, preceding the enactment of the EAA in 2000. The guidelines then pertained to hydropower, power transmission lines, highways and roads, forestry, mining and mineral processing, and new and existing industries. In 2003/04, the NECS undertook a revision of the existing sectoral EA guidelines with assistance from the Asian Development Bank (ADB). In addition, it also developed new guidelines for tourism and urban development sectors and environmental codes of practices (ECOP) for storm water drainage system and installation of underground and overhead utilities. To support environment friendly road construction, the Department of Roads (DoR) has developed ECOP for roads.

In issuing ECs for roads, one of the terms and conditions specified by the NECS is that the road construction must be in line with the ECOP developed by the DoR and the Sectoral EA Guidelines for Highways and Roads issued by the NECS. Information required to be submitted for EC in accordance to the sectoral EA guidelines include:

Applicant’s details;

Project objectives;

Relevance to overall planning;

Funding and costs, including environmental management costs;

Project description, including project location, category and length of the road, road specifications, management of excavated materials, and quantity of explosives and the techniques that will be employed in their use;

Alternatives in terms of the project itself and road alignment;

Details of public consultation;

Project site environmental details such as topography, geology and water courses;

Project site ecological details such as land use and vegetation, protected areas, and wildlife and flora;

Project site social details such as beneficiary population and affected properties (including cultural properties);

Impacts and mitigation measures.

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Pesticides Act of Bhutan, 2000

The Pesticides Act of Bhutan (PAB), 2000, has been enacted with the objective to:

ensure integrated pest management (IPM) is pursued, limiting the use of pesticides as the last resort;

ensure that only appropriate types and quality of pesticides are introduced in the country;

ensure that pesticides are effective when used as recommended;

minimize deleterious effects on human beings and the environment consequent to the application of pesticides; and

enable privatization of sale of pesticides as and when required.

Biodiversity Act of Bhutan, 2003

The Biodiversity Act of Bhutan, 2003, was ratified by the National Assembly in August 2003. The Act asserts the sovereignty of the country over its genetic resources, the need to promote conservation and sustainable use of biodiversity resources as well as equitable sharing of benefits arising from sustainable use, and the need to protect local people’s knowledge and interests related to biodiversity. It lays down the conditions for the grant of access, benefit sharing, and protection, and describes various rights, offences and penalties.

DYT and GYT Chathrims, 2002

In the context of decentralized environmental management, the DYT and GYT Chathrims, 2002, have laid down a number of provisions. These Chathrims were enacted with the main aim to support the decentralization policy and empower locally elected community bodies (DYTs and GYTs) with the authority and responsibility to decide, plan and implement development programmes and activities, including those concerning environmental management, in their respective areas of jurisdiction. Powers and functions vested in the DYTs and GYTs in relation to environmental management are specified below.

Environment-related provisions in DYT Chathrim, 2002

Article 8 of the DYT Chathrim 2002 gives the DYT the power and function to:

promote awareness and dissemination of national objectives (section 3);

adopt procedures and rules to implement national laws, wherever relevant (section 10); and

make recommendations on activities with major environmental impacts such as construction of roads, extraction and conservation of forests, mining and quarrying (section 13).

Article 9 of the DYT Chathrim 2002 gives the DYT the power and function to adopt and enforce regulations with respect to:

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designation and protection of monuments and sites of cultural and historical interests (section 1);

designation and protection of areas of special scenic beauty or biodiversity as Dzongkhag parks and sanctuaries (section 2);

control of noise pollution (section 8);

establishment of quarries and mines in accordance with Mines and Mineral Management Act 1995; and

protection of public health as per prevailing national guidelines or acts (section 14).

Article 10 of the DYT Chathrim, 2002, gives the DYT broad administrative power and function to give direction and approval on:

construction of farm and feeder roads (section 5);

forest management plan including extraction, conservation and forest road construction in accordance with the FNCA (section 8);

protection of forests, tsamdo and all types of government and community lands from illegal house and similar construction and other encroachments (section 19);

control of construction of structures, whether on national, communal or private lands, within 50 feet of highways, including enforcement of measures such as cessation of construction and demolition of the structures (section 20);

choice of trekking routes and camps for tourists (section 22); and

mobilization of voluntary actions in times of natural catastrophes and emergencies (section 26).

Article 13 of the DYT Chathrim 2002 gives the Dzongkhag Administration the powers and functions to:

construct farm and feeder roads, in conjunction with the NEC (section 5);

determine the choice of design, construction methods and building materials for forms, which do not have to follow standard designs in conformity with acceptable technical and structural norms (section 12); and

approve allocation of timber permits as per the rules and regulations issued by the MoA from time to time (section 16).

Environment-related provisions in GYT Chathrim 2002

Article 8 of the GYT Chathrim 2002 gives the GYT the power and function to adopt and enforce regulations at the Dzongkhag level with respect to:

safe disposal of waste (section 1);

control and prevention of pollution of air, soil and water (section 2);

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sanitation standards (section 3);

control of communicable livestock diseases within the Dzongkhag in accordance with the Livestock Act 2001 (section 4);

allocation of safe and clean drinking water from water supply schemes (section 5);

allocation of irrigation water, in accordance with the provision of the Land Act 1979 (section 6); and

protection and harvesting of edible forest products in the local area in accordance with the Forest and Nature Conservation Act 1995 (section 8).

Article 9 of the GYT Chathrim 2002 gives the GYT broad administrative power and function at the Dzongkhag level with respect to:

Administration, monitoring and review of all activities that are part of the Dzongkhag plan, including the maintenance of community properties such as lhakhangs, goendeys and their nangtens, chhoerten, mani dangrem, water supply schemes, irrigation channels, footpaths, mule tracks, farm and feeder roads, suspension and cantilever bridges, micro-hydels, basic health units and outreach clinics, lower secondary school and community schools, and extension centers of the RNR sector (section 2);

Conservation and protection of water resources, lakes, springs, streams, and rivers (section 7);

Custody and care of communal lands, community forests, including sokshing and nyekhor tsamdo, medicinal herbs and accordingly prevention of illegal house construction and all other types of encroachments on land and forests (section 8);

Prevention of construction of structures, whether on national, communal or private lands, within 50 feet of highways falling in local area (section 9); and

Protection and preservation of ney, nyekhang or yulha and zhiday, which are not part of custody of a monastic body or central agencies (section 10).

The Land Act of Bhutan 2007

The Act established autonomous National Land Commission (NLC) ,which took over land administration from the Ministry of Agriculture. According to the Act, the function of the Commission is to lay down policies, programs, regulations and guidelines in accordance with the Act. The commission is empowered to issue lag thram (ownership certificate) and has the authority to register land or amend change in thram. The NLC is empowered to acquire land, allot substitute land and approve compensation.

To support the implementation of the Land Act of Bhutan 2007, the NLC formulated Land Rules and Regulations (2007) which define the institutional functions, procedural requirements and regulatory provisions for management of national land records, land ownership entitlements and land rights, land registration, land conveyance, land acquisition and compensation, land grants, allotment of government

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land, cadastral survey, documentation and mapping, land conversion, land lease, easement, and annulment of land.

Key provisions are as follows,

a) The Government as defined in these rules shall acquire a registered land only for public interest.

b) Any Government Institution proposing acquisition shall state the public interests for which the land is to be acquired.

c) Acquisition of land occupied by religious monuments shall not be acquired.d) Land under acquisition shall be taken over only after registering the substitute land in the

name of the affected landowner or cash compensation has been made to the landowner.e) Any Government Institution or Dratshang applying for acquisition shall be responsible to

provide cash compensation or facilitate providing substitute land or both, subject to the approval of the Land Commission.

f) A Property Assessment and Valuation Agency (PAVA) established under the ministry of finance to valuation and fixes the value of land and any other collateral property that may be acquired.

g) The value of compensation for the land acquired including any landed property shall be as per 151 to 154 of the Land Act of Bhutan 2007.

h) If registered land is acquired from rural areas the landowner shall have the discretion to opt for substitute land or cash compensation.

i) The agency intending to acquire shall submit the application to the Secretariat projecting the purpose and the extent of area of land required for proposed acquisition.

j) The Commission Secretariat shall verify and confirm the public interest of the proposed acquisition, shall arrive at a decision on the proposal, instruct the Dzongkhag/Thromde Committee to conduct and prepare a detailed report if proposal is found feasible.

k) The Dzongkhag Committee shall serve a notice to the landowner of the government’s intention to acquire land at least 120 days prior to the acquisition of the land if the Secretariat approves that the proposed acquisition may be processed.

l) For Thromde, the Executive Secretary shall convey the intention of the Government to acquire land at least 120 days before the acquisition of land to the concerned land owner.

m) The Dzongkhag/Thromde Committee shall prepare a detailed report, specifying the compensation to be provided, including clearance certificates under the applicable laws if substitute land is to be provided, including survey report.

Summary of the Process for Land Acquisition as per the Land Act of Bhutan 2007. 2007 ( see below table)

Steps Details of the Procedures Time Required to Process1. Submission of application to NLC secretariat for land acquisition2. Evaluation and verification of requisition by NLC Decision within 2 weeks

after receipt of the application

3. If feasible, the Secretariat shall instruct the Dzongkhag/Thromde Committee to submit a detailed report.If not feasible, the NLCS rejects the proposal and informs the applicant, stating the reasons.

4. The Dzongkhag Committee shall issue a notice to the landowner of theGovernment’s intention to acquire land.

At least 120 days prior to theacquisition of the land

5. The Dzongkhag Committee shall prepare a detailed report in the format prescribed under Annexure PLA Form (1) to PLA Form (7)

Specify the compensation to be provided, based on the valuation of the PAVA

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If compensation includes substitute land, clearance certificates under theapplicable laws such as Forest and Nature Conservation Act and Environment Act

If Chhuzhing is to be acquired for purpose other than Chhuzhing the compliance of Chhuzhing conversion requirements prescribed under Section 166 of the The Land Act of Bhutan 2007..

The location of the substitute land from rural area in compliance with Section 155 of the The Land Act of Bhutan 2007..

Ensure compliance of restrictions under Section 137 of these rules

Survey report which shall include cadastral maps indicating clearly the total area, location and identification of the land to be acquired and substitute land

If compensation includes cash compensation the responsibility of the particular Government Institution to pay cash compensation.

6. Payment of compensation, release, and registration of acquired land substitute land

Upon final decision the Secretariat shall Convey to Dzongkhag Committee and the landowner whose land is acquired.

Transfer of land ownershipand registration of acquiredland in the name of theapplicant within 30 days fromthe decision of the LandCommission

7. Release of substitute land from the Government land and register substituteland in the name of the person whose land was acquired

Cause the applicant to make the necessary cash payment if cashcompensation is decided by the Land Commission

Ensure taking over of acquired only after compensation is provided to theLandowner

Within 30 days from thedecision of the Commission

Policies and Regulations on IPs and Vulnerable Peoples

An overview of available literatures shows that Bhutan has not defined Indigenous People (IP) and Vulnerable Community (VC) officially and there is no legislation specifically tailored for IPs, minor ethnic groups or vulnerable groups.

However, Bhutan’s overall development philosophy is based on all-inclusive, nondiscriminatory development, which is gaining further ground with the growing impetus on decentralization. The national decentralization policy is geared towards enhancing local governance and promoting broad-based participation at the local community level. While geogs are officially considered the smallest unit for planning and administration of development programmes, local activities and priorities emanate from the chiwog21 level. Each chiog is represented in the GYT (Geog Yargye Tshogchung or Block Development Committee) by its tshogpa (Representative of a chiwog). The tshogpa convenes chiwog meetings to discuss and draw consensus on local activities and priorities before submitting them to the GYT.

21 A groups of households for which a tshogpa is responsible. Larger villages are usually divided into two or more chiogs while smaller villages constitute a single chiog.

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Annex 5. Permissible pesticides list to Bhutan

Insecticide1. Chlopyrifos 20 EC2. Cypermethrin 10E3. Dimethoate 30EC4. Fevelerate 0.4D5. Malathion 5D6. Malathion 50 EC

Fungicide1. Carboxin 75WP2. Captan 50WP3. Carbendazin 50WP4. Copper Oxychloride 50WP5. Hexaconazole 5EC6. Mancozeb 75WP7. Metalaxyl 8%8. Propiconazole 25 EC9. Sulfur 80WP10. Tricylazole 25 WP

Herbicide1. Glyphossate 41 SL2. Metribuzin 70WP

Rodenticides1. Zinc Phosphate 80W/W

Acaricides1. Dicofol 18.5 EC

Non Toxic 1. Sticker/spreader (sandovit)2. Tree spray oil (TSO)

Bio- pesticide1. Trichoderma viride

Source: National Plant Protection Center, Department of Agriculture, MOAF, Thimphu

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Annex 6. Environmental Clearance Requirements

(According to RECOP Annex 2)

A. Exempted Activities

Activities not requiring Environmental Clearance are:

Consultancy firms Cinemas no involving land use change Barber shops Communication services (telephone, TV cable services, etc.) Umbrella repairs Seedling nurseries Carpet production without dyes Restaurants Hotels not involving land use change (taking into account waste disposal) Arts and handicrafts Electronic/ electrical repair services Tailoring Candle production Potato chip production Contracts Incense production Jari (Bhutanese tea leaves) production Noodle production Audiovisuals Cobbling Training institutes not involving land use changes Desktop publishing Photo studio without developing and printing facilities Indoor games Cycle repairs Beauty parlours Quilt making Clearing and forwarding agencies Health clubs Tours and travel services Discotheques Textile production without dyes Manufacture of organic fertilizers Road resurfacing Road maintenance Bioengineering Bridge maintenance not involving land use change Road improvement (base course, black topping and permanent works) Construction of buildings (individual residential houses in rural areas)

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Goods and passenger transport Cottage mills Goldsmith and blacksmith units Laundry services Tyre and tube repair services Day care centre for children

B. Relevant Competent Authority for Environmental Clearance

Application for Environmental Clearance of activities that are not listed below is required to be submitted to the National Environmental Commission Secretariat.

Competent Authority: Ministry of Trade and Industry

Department of Industry

Automobile services Wooden/ steel furniture units Sawmills Printing Press Tyre rethreading activities Stone crushing activities Bakery/ confectionaries Oil mills Manufacturing of handmade paper Brick/ hollow-block manufacturing Fabrication activities Tiles production Poultry farms Carpet production using dyes Textile production using dyes Photo studios Dry cleaning units

Department of Trade

Operation of fuel stations not involving land use changes

Department of Geology and Mines

Quarrying/ mining, covering less than 3 hectares Mineral exploration Emergency responses to natural disasters/ hazards

Competent Authority: Ministry of Works and Human Settlements (previously Ministry of Communications)

National Authority for Construction Standards and Quality Control

Road widening/ curve improvement Construction of urban roads

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Location of housing colony (temporary/ permanent) Construction of urban drainage Permanent works (retaining walls, breast walls, causeways) Utilities and service lines Road realignment (less than 1 km and not falling within a protected area) River training works Monsoon damage restoration works Bridges

City Corporation

Construction of buildings Any other activities within municipal boundary duly approved by the government

Competent Authority: Ministry of Agriculture

Department of Forestry Services

Surface collection of sand and boulder Allocation of forest produces to rural communities outside FMUs Community forest harvesting Private forest harvesting Afforestation Reforestation Management and collection on non-wood forest produce All activities within an Forest Management Unit (road construction, logging

operations, reforestation) Forest sanitation operations

Department of Agriculture

Irrigation channels Activities related to agricultural research and development

Competent Authority: District Environmental Committee

Construction of:1. Power tiller road2. Mule tracks3. Private road less than 500 meters4. Community School5. RNR centres including staff quarters6. Geog centres including staff quarters7. Labour camps8. Outreach clinic centers9. Farm roads less than 5 km10. Solid waste disposal11. Rural Water supply schemes

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Annex 7. Sample Checklist for Environmental Risk Identification and Analysis

(for information collection, risk identification, and analysis)

Will the subproject and/or activity likely to affect the following? Where, why, and to what extent? What can be done to avoid, minimize, or mitigate?

1. Protected Areas and known natural habitat (national parks, wildlife reserve, legally protected or area proposed for protection, unprotected but of known high conservation value) or biodiversity corridor, or nearby an area which is known to be a critical wildlife habitat, and those area that are listed as totally protected species in the FNCR.

2. Forest (national forest, reserve forest, religious forest, community forest, private forest – core forest or fringe forest)

3. Known route of wildlife or wild bird movement

4. High risk of landslides and erosion prone areas

5. Flood Prone / River Cutting / Low Lying Areas

6. Water Sources / Water Bodies such as pond, lakes, springs, drinking water sources etc.

7. Historical / religious / Cultural Sites such as monastery, temple, fort, palace, other religious sites, etc.

8. Aesthetically important places / valued natural landscapes / viewpoints

9. Local/ Community Infrastructures (Irrigation canal, water supply, foot trails, trails bridges, religious trees & resting places, electricity poles, telephone poles etc.)

10. Agricultural land, private property (land, house, structure), local resources, community forests, etc.

11. Increased use of chemical pesticide and fertilizer

12. Risk of disaster (such as from dam break or from fire, or from accidental release of chemicals, etc.).

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Annex 8. Sample Social Screening format

A. General Information

Title of the Subproject:

Site Locality:

Screening Date:

B. Project Related Information

B1 Activities includes: (described in brief regarding subproject activities)

B2. Describe existing land use/occupancy of site and surroundings in brief and accordingly draw a free-hand map (Please use separate sheet)

C. Socio-economic Information

C1 What are the asset(s) that would be affected due to Subproject Interventions? Yes or No

Land ………. Physical Structure (dwelling or commercial)……….. Trees/crops……. Natural Resources (Water bodies/ Forest/ Public Pond)…. Community Resource Property….. Others (please specify)….

C2 Land C.2.1 Ownership of Land: Public/Private……………..

C.2.2 Type of Land: Agricultural/ Homestead/ Low Land /Fallow/ Pond/OthersPlease specify……………….

Does the subproject require additional land permanently or on a temporary basis?

--------------------------------------------------------------------------------------------- Sometimes as part of road/canal/community resource property upgrading

interventions, subprojects may require small parcels of land permanently to meet engineering design requirements. In such case what would be the land procurement policy? Direct Purchase…Yes/no…………; voluntary donation……yes/no…; acquisition ……….. Yes/no……………………………?

To except voluntarily donated land what would be the legal procedure? In case of land acquisition, will there be physical and/or economic

displacement of people?

C2.3 Is there any squatter/ encroacher/ leaseholder residing on public lands? Yes/ No and specify type

If yes.

What would be the total numbers of Affected Families?

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Is there any possibility of physical displacement?

How will their livelihoods be affected? (example: due to loss of shelter and housing structure, loss of income source, loss of grazing field/ social network/ family bondage etc) Do the affected families have school going children? Yes/noIf yes,……………..how many such children are there?

Among the affected household, is there any person holding long term lease? Yes/no…………… if yes, Land uses for what purpose?...................................., Till how many years remains out of total leasing period?...........................

C3 Structure (Housing/Commercial )

C 3.1 Type and total number of Housing structure that would be affected: C 3.2 Is there any commercial/ business structure that would be affected?C 3.3 Ownership types of the affected structures: Private/ Leaseholder/squatter/encroacher

Please specifyC 3.4 Is there any tenant identified using the affected structure? Yes/No

C 4. Trees and Crops

C 4.1 Is there any tree/plant that might be affected? Yes/no……… Total estimated number by size………………………………………………?

C 4.2 Is there any social forestry /plantation project that would be affected? Yes/no…………….

C 4.3 Is there any common fruit bearing tree that would be affected? Yes/no…………Species…………..

C 4.4 Any agricultural land included within the subproject footprint? Yes/no…………

If yes, please provide necessary information regarding productivity of land, type and quantity of Crop that might be affected and market value……………………………………………………………………………………………………………………………………………………………………………………………………..

C 5. Is there any Community Resource Property that would be affected? Yes/No................ Please Specify………………….. Who are the beneficiaries of the affected Community Resource? What is their reaction- Positive/negative?...................Did they support the project?. Yes/No..............................What are the reasons to support/ stand against the project?

C6. Is there any Natural Resource that might be affected? Yes/No……………

If yes, please describe regarding dependency on the Affected ResourcesC7. Indigenous PeoplesC 7.1 Is there any community of Indigenous Peoples residing within or adjacent the project

site? Yes/No………..For how long .....................?

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C 7.2 Any Households of Indigenous Peoples would be affected? Yes/No……………………If yes, how many families would be affected?.........................

C 7.2 Is there any way that proposed project may pose any threat to cultural tradition and way of life of indigenous Peoples? Yes/No………………………

C 8 Beneficiaries C 8.1 Who are the Beneficiaries? How they would be benefited by the subproject?

Access to health facilities/services? Yes/No......... Better access to schools, education and communication? Yes/No......... Project activities would provide income-generating source. Yes/No.........

Please describe Subproject shall promote marketing opportunities of the local products?

Yes/No…… If yes, how would that happen? Please elaborate Are people ready to co-operate with the project? Yes/No...............

Please elaborate the reasons

C 9 How will the subproject create opportunities for Beneficiaries?

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Annex 9. Recommended Format for a Pest Management Plan

1. Background which would outline the purpose of the Plan, indicate pest management authorities, and pest management program objective;

2. Responsibilities of individuals

3. General Information which should provide data on land use and soil, in the area where the pesticides are applied; climate, geo-morphology, settlements in the area of concern, population, surface water, etc. as well as inventory of land use and layout of facilities

4. Priority Areas that Require Pest Management

5. Integrated Pest Management

5.1 Principles of the Integrated Pest Management are:a) Mechanical and Physical Control. This type of control alters the environment in which a pest lives, traps and removes pests where they are not wanted, or excludes pests. Examples of this type control include: harborage elimination through caulking or filling voids, screening, etc. b) Cultural Control. Strategies in this method involve manipulating environmental conditions to suppress or eliminate pests. For example, spreading manure from stables onto fields to dry prevents fly breeding. Elimination of food and water for pests through good sanitary practices may prevent pest populations from becoming established or from increasing beyond a certain size. c) Biological Control. In this control strategy, predators, parasites or disease organisms are used to control pest populations. Sterile flies may be released to lower reproductivity. Viruses and bacteria may be used which control growth or otherwise kill insects. Parasitic wasps may be introduced to kill eggs, larvae or other life stages. Biological control may be effective in and of itself, but is often used in conjunction with other types of control. d) Chemical Control. Pesticides kill living organisms, whether they will be plants or animals. At one time, chemicals were considered to be the most effective control available, but pest resistance rendered many pesticides ineffective. The trend is to use pesticides which have limited residual action. While this has reduced human exposure and lessened environmental impact, the cost of chemical control has risen due to requirements for more frequent application. Since personal protection and special handling and storage requirements are necessary with the use of chemicals, the overall cost of using chemicals as a sole means of control can be quite costly when compared with nonchemical control methods.

5.2 Integrated Pest Management Outlines. This sub-chapter addresses each major pest or category of similar pests is addressed, by site, in separate outlines.

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5.3 Annual Plan for Surveillance, Prevention, and Control. In this sub-chapter has to be indicated the number of man-hours expended for surveillance, prevention, and control of pests.

6. Health and Safety. This chapter should contain health and safety requirements as follows:

6.1 Medical Surveillance of Pest Management Personnel. All personnel who apply pesticides have to are included in a medical surveillance program.

6.2 Hazard Communication. Pest management personnel are given hazard communication training, to include hazardous materials in his workplace. Additional training is to be given to new employees or when new hazardous materials are introduced into the workplace.

6.3 Personal Protective Equipment. In this chapter has to be described approved masks, respirators, chemical resistant gloves and boots, and protective clothing (as specified by applicable laws, regulations and/or the pesticide label) are provided to pesticide applicators. These items are used as required during the mixing and application of pesticides. Pesticide-contaminated protective clothing is not be laundered at home but commercially. Severely contaminated clothing is not laundered, but is considered a pesticide-related waste and disposed, as applicable for hazardous waste.

6.4 Fire Protection. The fire safety protection requirements have to be established; the pest management coordinator has to control implementation of measures to prevent fire.

7. Environmental Considerations.

7.1 Protection of the Public. Precautions are taken during pesticide application to protect the public, on and off the installation. Pesticides should not be applied outdoors when the wind speed exceeds 155 m/min. Whenever pesticides are applied outdoors, care is taken to make sure that any spray drift is kept away from individuals, including the applicator. Pesticide application indoors is accomplished by individuals wearing the proper personal protective clothing and equipment. At no time are personnel permitted in a treatment area during pesticide application unless they have met the medical monitoring standards and are appropriately protected.

7.2. Sensitive Areas. No pesticides are applied directly to wetlands or water areas (lakes, rivers, etc.) unless use in such sites is specifically approved.

7.2. Endangered/Protected Species and Critical Habitats. Protected migratory birds which periodically occur on the installation cannot be controlled without a permit. The Pest Management Coordinator periodically evaluates ongoing pest control operations and evaluates all new pest control operations to ensure compliance with the list of endangered species No pest management operations are conducted that are likely to have a negative impact on endangered or protected species or their habitats without prior approval from environmental authorities.

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7.3. Environmental Documentation. An environmental assessment which specifically addresses the pesticide use program on the installation has been prepared. This plan is referenced in the assessment as documentation of pesticide use.

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Annex 10. PCR Chance Find Procedure

If any person discovers a physical cultural resource, such as (but not limited to) archeological sites, historical sites, remains and objects, or a cemetery and/or individual graves during excavation or construction, the Contractor shall:

1. Stop the construction activities in the area of the chance find;2. Delineate the discovered site or area;3. Secure the site to prevent any damage or loss of removable objects. In cases of

removable antiquities or sensitive remains, a night guard shall be arranged until the responsible local authorities take over;

4. Notify the Supervising Officer who in turn will notify the responsible local authorities immediately (within 24 hours or less);

5. Responsible local authorities are in charge of protecting and preserving the site before deciding on subsequent appropriate procedures. This would require a preliminary evaluation of the findings to be performed by archeologists. The significance and importance of the findings should be assessed according to the various criteria relevant to cultural heritage; those include the aesthetic, historic, scientific or research, social and economic values used by the RGOB;

6. Decisions on how to handle the finding shall be taken by the responsible authorities. This could include changes in the layout (such as when finding an irremovable remain of cultural or archeological importance) conservation, preservation, restoration and salvage;

7. Implementation for the authority decision concerning the management of the finding shall be communicated in writing by relevant local authorities; and

8. Construction works could resume only after permission is granted from the responsible local authorities concerning safeguard of the physical cultural resource.

The Supervising Officer must have capacity to manage the processes in the plan. At a minimum, expert opinion should be sought from government agencies or specialist consultants for the following:

Issues with relocation / removal that cannot be resolved through the procedures in this plan.

Restoration of damages to physical cultural resources or graves caused by construction‐related

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