Lao PDR: Monsoon 600 MW Cross-border Wind Power Project

OBJECTIVE

The objective of the Project is to (i) increase the electricity supply from renewables in the Socialist Republic of Viet Nam (Viet Nam) by supporting a cross-border electricity trade between Lao PDR and Viet Nam, and (ii) diversify Lao PDR’s source of electricity exports.

DESCRIPTION

The Project involves the development, construction, and operation of an approximately 600-megawatt wind generation facility, an associated 500-kilovolt substation, and a 500-kilovolt transmission line in Sekong Province and Attapeu Province in Lao PDR. The generated electricity is expected to be sold to Vietnam Electricity (EVN).

ENVIRONMENTAL AND SOCIAL INFORMATION

The Project is co-financed with ADB as a lead co-financier, and its environmental and social (ES) risks and impacts have been assessed in accordance with ADB’s SPS. To ensure a harmonized approach to addressing ES risks and impacts of the Project, and as permitted under AIIB’s ESP, AIIB agrees that the ADB’s SPS will apply to the Project in lieu of AIIB’s ESP. AIIB has reviewed ADB’s SPS and is satisfied that: (i) it is consistent with AIIB’s Articles of Agreement and materially consistent with the provisions of AIIB’s ESP and the relevant ES Standards; and (ii) the monitoring procedures that are in place are appropriate for the Project.

ES Due Diligence assessment has been carried out including a site visit by the lender group including AIIB. Screening of the site conditions and proposed Project investments point to potential impacts on biodiversity including amphibians, birds/bats, cultural heritage (spiritual forest areas and cemeteries), and possible occupational health and safety risks including those related to the potential disturbance of soils and sediment contaminated by defoliating chemicals and unexploded ordnance. An Environmental and Social Impact Assessment (ESIA) was prepared in 2020 in accordance with Lao PDR’s requirements. This ESIA has been updated to meet ADB’s SPS and lenders’ requirements. No physical displacement is currently anticipated. The permeant and temporary social impacts identified includes loss of agricultural land and non-timber forest product collections. Moreover, structures in the form of farm hut, barbed wire fence, fence post, toilet and kitchen are likely to be affected. The Project is likely to generate disproportionate effects on vulnerable groups, including women and ethnic minorities.  The Borrower will establish and operate a project-level grievance redress mechanism (GRM) for local communities and the contracted workers respectively. The public consultation and disclosure process will be used to disseminate ES information in a timely manner. This includes information on the project-level GRM and the Project-affected Peoples Mechanism (PPM) of AIIB.

The ESIA including an Environmental and Social Management Plan (ESMP) have been completed. The ESIA and ESMP were disclosed on ADB’s website in April 2022 and updated in October 2022. ADB also disclosed Indigenous Peoples Plan/Community & Ethnic Group Development Plan and Resettlement Plan in September 2022 on its website. AIIB’s website includes links to the documentation on ADB’s website. A Biodiversity Action Plan, Community & Ethnic Group Development Plan, Resettlement Plan and Stakeholder Engagement Plan were disclosed in draft version on August 19, 2022 and in final version on May 1, 2023, on AIIB’s website. The ES documentation was disclosed in English (via ADB and AIIB website). Summaries incorporating elements of this documentation were disclosed in the AIIB website and made available to the relevant stakeholders, including the Project-affected people, in language(s) understandable to them. This was done during the local consultations.

Monitoring and supervision missions will be carried out every six months during construction and annually thereafter. Site visits to verify implementation of ES plans will be carried out jointly by the lender group once conditions allowed. ES monitoring reports will be prepared by the Project Company every quarter during construction work, and every six months thereafter.