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

Environmental Assessment Report

Initial Environmental Examination Project Number: 42252 August 2010

BHU: Rural Renewable Energy Development Project Prepared by the Department of Energy, Government of Bhutan for the Asian Development Bank (ADB).

INITIAL ENVIRONMENTAL EXAMINATION FOR SOLAR HOME LIGHTING SYSTEM PROJECT IN BHUTAN

Table of Contents

ABBREVIATIONS ...................................................................................................... v

0.0 ........................ viii Executive Summary - Initial Environmental Examination (IEE)

0.1 ......................................................................................... viii Need for the Project

0.2 ................................................................................................ viii Basic Objective

0.3 ..................................................................................... viii Location of the Project

0.4 ........................................................... viii Initial Environmental Examination (IEE)

0.5 ............................................................................................ix Category of Project

0.6 ........................................................................................ix Brief Details of Project

0.7 ..............................................................ix Implementing and Executive Agencies

0.8 ....................................................ix Policy, Legal and Administrative Frame Work

0.9 ................................................................................ x Description of Environment

0.9.1 ................................................................................ x Physical Environment

0.9.2 ...............................................................................xii Ecological Resources

0.9.3 ............................................................................xii Economic Development

0.9.4 .................................................................xiv Social and Cultural Resources

0.10 .............................................xiv Environmental Impacts and Mitigation Measures

0.11 Analyses of Alternatives ....................................................................................xv

0.12 ............................................ xvii Public Consultations and Information Disclosure

0.13 ..............................................................xx Grievance Redress Mechanisms

0.14 ..........................................................xx Environmental Management Plan (EMP)

0.14.1 .........................................xx Environmental Management Plan (EMP) Cost

0.15 Findings, Recommendations, and Conclusions...............................................xxi

0.15.1 ...................................................................................................xxi Findings

0.15.3 Conclusion .............................................................................................. xxii

1.1 ........................................................................................................ 1 Background

1.2 ............................................................. 1 Initial Environmental Examination (IEE)

1.3 ...................................................................................... 2 Structure of IEE Report

1.4 ............................................................................................ 2 Acknowledgements

2.0 ......................................................... 3 Policy, Legal & Administrative Framework

2.1 ............................................................. 3 Policies relevant to Biogas Component

2.2 ...................................................................................... 3 Electrification Act 2001

2.3 ........................................... 3 Forest and Nature Conservation Act (FNCA) 1995:

2.4 ....................................... 3 Forest and Nature Conservation Rules (FNCR) 2000:

2.5 ................................................................................................. 4 Protected Areas

2.6 ........................................................................... 4 Land Act 1979 (Revised 2007)

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2.7 .................................................................. 5 RGOB Decentralization Policy 2002

2.8 .................................................... 5 RGOB Environmental Clearance Procedures

2.8.1 ...................................................................... 5 Environmental Classification

2.8.2 .................................................................... 6 Preparation of EC Application

2.9 ......................................................................................................... 6 Conclusion

3.0 ................................................................................... 7 Description of the Project

3.1 ........................................................................................... 7 Need for the Project

3.2 .................................................................................................. 7 Basic Objective

3.3 ............................................................................................. 7 Location of Project

3.4 .............................................................. 7 Details of Solar Home Lighting System

3.4.1 Proposed Solar Home Lighting System Specifications ................................ 7

3.4.2 Photo Voltaic (PV) Panel.............................................................................. 8

3.4.3 Technical Details of SHLS ........................................................................... 9

3.4.4 ......................................................................... 9 PV Technical Specifications

3.4.5 ....................................................................................... 10 Charge Controller

3.4.6 Rechargeable Deep Cycle Battery ............................................................ 11

3.4.7 LED Lamp with Matching Holder................................................................ 12

3.5 ........................................................................................... 13 Location of Project

3.6 ................................................................................................. 13 Cost of Project

3.7 ............................................................ 14 Implementing and Executive Agencies

4.0 ........................................................................ 15 Description of the Environment

4.1 .......................................................................................... 15 Physical Resources

4.1.1 ................................................................................................... 15 Location

4.1.2 ............................................................... 15 Topography, Geology and Soils

4.1.3 ..................................................................................................... 16 Climate

4.1.4 ................................................................................................ 16 Air Quality

4.1.5 ......................................................... 16 Surface Water Sources and Quality

4.1.6 ........................................................... 17 Groundwater Sources and Quality

4.1.7 .................................................................... 17 Noise Levels in Project Area

4.1.8 ............................................................................... 18 Aquatic Environment

4.2 ....................................................................................... 18 Ecological Resources

4.2.1 ....................................................................................... 18 Protected Areas

4.2.2 ................................................................... 20 Rare or Endangered Species

4.2.3 .............................................................................................. 21 Biodiversity

4.2.4 ..................................................................................................... 22 Wildlife

4.3 ................................................................. 25 Economic Development Resources

4.3.1 ........................................................... 25 Land use, Industry and agriculture

4.3.2 ........................... 26 Administrative Infrastructure and Community Facilities

4.3.3 .......................................................................................... 27 Transportation

4.3.4 ................................................................. 27 Electricity and Communication

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4.3.5 .................................................................................................... 27 Tourism

4.4 ......................................................................... 28 Social and Cultural Resources

4.4.1 ............................................................................................ 28 Demography

4.4.2 ................................................................................. 28 History and Cultural

5.0 .......................... 30 Anticipated Environmental Impacts and Mitigating Measures

5.1 ................................................................ 30 Environmentally Insignificant Issues

5.2 30 Environmentally Significant Issues /Valued Environmental Component (VEC)

5.3 ........................ 31 Topography and Soil- Environmental Impacts and Mitigations

5.3.1 .................................................................................................... 31 Impacts

5.3.2 ................................................................................. 31 Mitigation Measures

5.4 .................................................................................................. 32 Human Health

5.4.1 .................................................................................................... 32 Impacts


5.5 ....................................................................................................... 32 Biodiversity

5.5.1 .................................................................................................... 32 Impacts


5.6 ..................................................... 33 Positive Social and Environmental Benefits

5.7 ....................................................................................................... 33 Conclusion

6.0 .................................................................................... 34 Analysis of Alternatives

6.1 ......................................................................................... 34 No Project Scenario

6.2 ............................................................................................... 34 Project Scenario

6.3 .............. 34 To provide other form of Energy such as small Hydropower Projects

6.4 .............................................................................. 34 Comparison of Alternatives

6.5 ....................................................................................................... 36 Conclusion

7.0 ........................................................ 37 Information Disclosure and Consultations

7.1 ...................................................................................................... 37 Introduction

7.2 ........................................................................................................ 37 Objectives

7.3 Methodology Adopted for Public Consultations............................................... 37

7.3.1 Stages and Levels of Consultation............................................................. 37

7.3.2 Contents.................................................................................................... 38

7.4 ........................................................ 38 Location Wise Summary of Consultations

7.4.1

............................................................................................... 39

Public Consultation at Tongtsho village-Tseza Geog, Dagana Dzongkhag

on 19 January 2010th

7.4.2

................................................................................................................. 39

Public Consultation at Doban Geog, Sarpang Dzongkhag on 12 January

2010

th

7.4.3

.................................................................................................... 39

Public Consultation at Thasa Village, Lajab Geog, Dagana Dzongkhag

23 January 2010rd

7.4.4

............................................................................ 39

Public Consultation at Upper Majgaon village, Patalay Geog, Tsirang

Dzongkhag on 28 January 2010th

7.4.5 Public Consultation at Village Chota Tsirang/Sisty and Daragaon, Geog

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Sengye, Sarpang Dzongkhag on 15 January 2010th ................................................ 39

7.5 ........................................ 40 Addressal of Public Concerns in the Project Design

7.6 ....................................................................................................... 41 Conclusion

8.0 ....................................................................... 42 Grievance Redress Mechanism

9.0 43 Institutional Requirements, Environmental Management and Monitoring Plan

9.1 ................................................................................ 43 Institutional Requirements

9.2 ........................................................................... 43 Environment Monitoring Plan

9.3 ......................................................... 45 Environmental Management Plan (EMP)

9.4 ............................................................ 50 Environmental Management Plan Cost

10.0 Findings, Recommendation and Conclusion ................................................... 51

10.1 ........................................................................................................... 51 Findings

10.2 ........................................................................................... 51 Recommendations

10.3 ....................................................................................................... 51 Conclusion

LIST OF TABLES

Table 1: No. of Targeted Households for Off-Grid Solar Home Lighting Systems................. 7

Table 2: Specifications of Solar Home Lighting System ......................................................... 8

Table 3: Endangered or Vulnerable Species Expected in Protected Areas.......................... 21

Table 4: Avifauna of Project Areas (Based on Discussion with Forest officials and

Published Sources)........................................................................................................ 22

Table 5: Species listed in the Forest and Nature Conservation Act...................................... 24

Table 6: Comparison of Alternatives..................................................................................... 35

Table 7: Addressal of General Issues and Concerns under the Project ............................... 40

Table 8: Environmental Monitoring Plan ............................................................................... 44

Table 9: Environmental Management Plan (EMP)................................................................ 46

LIST OF FIGURES

Figure 1: Proposed Dzongkhags for SHLS Installation......................................................... 13

Figure 2: Major Rivers of Bhutan .......................................................................................... 17

Figure 3: National Protected Areas and Biological Corridors of Bhutan ............................... 18

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INITIAL ENVIRONMENTAL EXAMINATION FOR BHUTAN BIOGAS PILOT PROJECT

ABBREVIATIONS

ADB: Asian Development Bank

AH: Ampere Hour

AM: Amplitude Modulation

BAP: Biodiversity Action Plan

BHU: Basic Health Unit

BMNP Blue Mountain National Park

BPC: Bhutan Power Corporation Limited

BWS: Bumdeling Wildlife Sanctuary

C20/C10: Capacity at 20 Hours/Capacity at 10 Hours

DCSD: Distribution and Customer Services Department

DFO: Divisional Forest Officer

DOD: Maximum Depth of Discharge

DOF: Department of Forest

DOE: Department of Energy

DYT: Dzongkhag Yargay Tshogdue

EC: Environmental Clearance

EIA: Environmental Impact Assessment

FNCA: Forest and Nature Conservation Act

FNCR: Forest and Nature Conservation Rules

FYP: Five Year Plan

HH: Household

HSS: Higher Secondary School

ICDP: Integrated Conservation and Development Project

IEE Initial Environmental Examination

IEC6125:2005: International Quality Certificate for Solar Panel

JDNP: Jigme Dorji National Park

JSWNP: Jigme Singye Wangchuck National Park

KWS: Khaling Wildlife Sanctuary

LED: Light Emitting Diode

LSS: Lower Secondary School

MOA Ministry of Agriculture

MOEA Ministry of Economic Affairs

MHz: Mega Hertz

MP: Member of Parliament

MSS: Middle Secondary School

MSWS: Merak Sakteng Wildlife Sanctuary

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MTI: Ministry of Trade and Industry

mA: Milli Ampere

mV: Milli Volt

NCD: Nature Conservation Division

NEC: National Environment Commission

NES: National Environment Strategy

NOC: No Objection Certificate

NTFP: Non-Timber Forest Product

NWFP Non-Wood Forest Product

O & M: Operation and Maintenance

ORC: Out Reach Clinic

PA: Protected Area

PM: Project Manager/Park Manager

PPTA: Project Preparatory Technical Assistance

PS: Primary School

PWS: Phibsoo Wildlife Sanctuary

PV: Photo Voltaic Panel

PVRS: Photo Voltaic Recommended Specifications

RE: Rural Electrification

RED Renewable Energy Department of Department of Energy ( MOEA)

RGOB: Royal Government of Bhutan

RMNP: Royal Manas National Park

RNR: Renewable Natural Resources

RoW: Right of Way

RSPN: Royal Society for the Protection of Nature

SW: Short Wave

TNP: Thrumshingla National Park

TSNR: Toorsa Strict Nature Reserve

WCP: Wangchuck Centennial Park

WP/Wpk: Watt Peak

WLED: White Light Emitting Diode

WEIGHTS AND MEASURES

C : degree Celsius

dB(A) : decibels measured in the audible noise bands

Ha : Hectare

km : Kilometre

m : Meter

m3 : cubic meter

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vii

kg : Kilogram

mg/l : milligram per liter

T : Ton

TPA : Tonnes per annum

Executive Summary

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0.0 Executive Summary - Initial Environmental Examination (IEE)

0.1 Need for the Project

1. Bhutan is a mountainous country and rural electrification through grid is not possible at many rural habitations due to techno-economic reasons. RGOB has set a target of ‘Electricity for All’ by 2013. In order to achieve the set target installation of solar home lighting system (SHLS), in remote rural house hold where grid extension is not possible, has been found to be a feasible option. The project will provide electrification in poor rural households.

0.2 Basic Objective

2. The objective of project is to provide electrification in rural households where extension of grid is not possible on techno-economic reasons. The SHLS project aims to provide rural electrification in 1850 households spread over 10 Dzongkhag of the country. The targeted Dzongkhags are Chukha, Dagana, Gasa, Haa, Paro, Punakha, Samtse, Sarpang, Trongsa, and Wangdue Phodrang.

0.3 Location of the Project

3. The SHLS project will be spread over 10 Dzongkhag of the country.

Dzongkhag wise targeted number of household are as given below:

S. No. Name of Dzongkhag Targeted Number of

House Hold

1 Chukha 563

2 Dagana 231

3 Gasa 200

4 Haa 170

5 Paro 44

6 Punakha 16

7 Samtse 177

8 Sarpang 177

9 Trongsa 12

10 Wangduephodrang 260

Total 1850

0.4 Initial Environmental Examination (IEE)

4. The IEE has been included in project preparation to streamline environmental

issues in SHLS project implementation. The IEE report has been prepared as per ADB Safeguard Policy 2009.The IEE preparation led to identification

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potential environmental impacts during construction and operation phases and this led to preparation of Environmental Management Plan (EMP) to mitigate the adverse impacts.

0.5 Category of Project

5. The SHLS project has been categorised as Category –‘B ‘as there are no

significant impacts during installation and operation phases.

0.6 Brief Details of Project

6. The specifications for the proposed solar home lighting systems to be installed

take into account the transport costs to the remote mountainous areas and the improved system reliability to reduce the maintenance requirements. Following shows the system components and specifications:

S. No. Component Specifications

1 Solar Panel 80 WP

2 Charge Controller 10 Amps

3 Lumanaries 3 Watt WLED

4 Battery 80 AH@ c20, <32 kg

5 Wires As per locally available

6 Accessories As per locally available

7. The Department of Energy has undertaken a detailed analysis of SHLS

performance and components in Bhutan. The project design accounts for weather conditions, Bhutanese solar insolation resources, cable losses, pane degradation factors, battery and charge controller efficiencies and aging of components over time. In this sense, the design is regarded as conservative, but will not disappoint in performance, and this is an important consideration when providing services to rural households where service and support is difficult. Bhutan offers 4.25 kW/(m2day) as a solar insolation. This has been considered in the project design.

0.7 Implementing and Executive Agencies

8. The Department of Energy (Ministry of Economic Affairs) will be the Executing

Agency (EA), and Department of Energy’s (DOE) Renewable Energy Division (RED) in MOEA will be the Implementing Agency (IA). RED has managed the implementation of Bhutan Solar Electrification Program since 2006 and demonstrated good performance for project management of solar home lighting electrification project.

0.8 Policy, Legal and Administrative Frame Work

9. In Bhutan environmental protection has been entrusted to NEC. The Royal

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Government of Bhutan has enacted a number of acts and rules such as Forest and Nature Conservation Act 1995, Forest and Nature Conservation Rules2000, etc. The SHLS project does not require environmental clearance as this has not been mentioned in the list of industries/activities requiring environmental clearance. But on advice of NEC an application for environmental clearance has been submitted to NEC. The environmental clearance has been obtained.

0.9 Description of Environment

0.9.1 Physical Environment

10. The determination of baseline conditions is a pre requirement in the

preparation of IEE reports. The prevailing baseline status in project area have been described below:

(a) Topography, Geology and Soil

11. All ten Dzongkhags where SHLS are planned to installed lie in central,

northern and western part of the country with elevations ranging from 200m to 5600m above sea level. Parts of Haa have highest elevation of 5600 m. In these higher zones installation is not likely as there are no habitations

12. All the ten Dzongkhags fall within the Lesser Himalayan formation. This

includes a wide range of sedimentary and low grade metamorphic rocks, including argillites and metargillites, sandstones and quartzites, limestone, dolomite and gypsum. Gneisses under lie more than 70% of the country right down almost to the Indian border. The shumar formation and Manas formation also exist in some of Dzongkhags such as Sarpang. The Shumar formation comprises of alternating sequence of quartzite.

13. The soil types found in all 10 Dzonggkhags range from sandy, clay, loam to

sandy loam and clayey loam. Generally the soil in the alluvial low land river valleys is quite fertile and crops grow well as soil moisture is also adequate in the foothills. At lower altitudes, many of the slopes are covered with colluviums, a mixture of soil and stones deposited by slow creep and many small landslips and slumps. At slopes soils are shallow.

(b) Climate

14. The climate in project area varies according to the altitude. The higher altitude

experience cool temperate climate with warm humid summers and chilly winters with snowfall in some parts in winter, while in the lower elevation areas climate is sub-tropical to temperate. The Wangduephodrang Dzongkhag is known as windy due to the strong winds that blow across the valley each day.

15. The relative humidity in project area ranges 63% to 90%, with an average of about 70% in the past four years. The least humid period is during pre monsoon (March-May). The average mean temperature for the warmest

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months of June and July is about 20-300C, while the mean temperature for the coldest months of January and February is about 10-120C. In January and December months at locations of higher altitudes such as Gasa temperatures drop to minus 2.1 degree Celsius

16. The average annual rainfall ranges from 600 mm to 5,000 mm but sometimes

the precipitation becomes much large. The precipitation is heaviest during the months from June to September.

(c) Ambient Air Quality

17. Ambient air quality monitoring is not being done in project area. NEC is

monitoring air quality at Phuentsholing and Thimphu. The concentration of respirable particulate matter and gaseous pollutants concentrations at both locations are within the limits. In project area ambient air quality is expected to be better as there are less traffic and commercial activities. These both are contributor to air quality through release of exhaust gases.

(d) Surface Water Quality and Sources

18. Each Dzongkhag has perennial rivers and local streams for the drainage of

the area. The prominent streams are Maokhola, Shetikhahray Chu and Dawalakhola Chu in Sarpang, Wong Chu in Chukha, Paro Chu in Paro, Phegu Chu, Tong Chu, Pho Chu, Mochu and Punatangs Chu in Gasa, Tsang Chu, Dang Chu, Kisona Chu and Hangra Chu in Wangduephodrang, Pho Chu, Mochu, and Sankosh Chu in Punakha. Tributaries of Wong Chu also drain Haa. Wong Chu tributaries drain Dagana and Trongsa by river system mentioned for Wangdue. Samtse Dzongkhag is drained by Torsa River. (e) Ground Water Potential and Quality

19. There are no data available on the groundwater potential. Ground water

resources are also abundant with springs emerging from basement rocks, old landslides and fluvial deposits. Groundwater in landslide and alluvial deposits has been estimated at an exploitable rate of 3 liters/ second/km2. Currently water quality monitoring is only conducted in the four major river system of Bhutan. Generally, the state of Bhutan’s ground water quality is still good but with expanding settlement along rivers, there are localized pollution problems due to expanding settlement along rivers. In project area, water quality is anticipated to be good.

(f) Noise Level

20. Data on measured noise levels is not available in the project area as currently

NEC is measuring noise levels at Phuentsholing and Thimphu only. Major contributors to the ambient noise levels are commercial activities and vehicular traffic. In project area these activities are not much, therefore, noise is expected to be within the stipulated limits notified by NEC for Rural and Residential areas (55 dB(A) during day, and 45 dB(A) during night).

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(g) Aquatic Environment

21. There are 41 species of fishes in the rivers and lakes of Bhutan. This includes eight exotic species like the coldwater trout, and seven species introduced for warm water aquaculture. This report gives detailed listing of these species.

0.9.2 Ecological Resources

(a) Protected Areas

22. In ten Dzongkhags where SHLS project is planned to be implemented there are six protected areas namely Jigme Singye Wangchuk National Park(JSWNP), Royal Manas National Park(RMNP) ,Phibsoo Wild Life Sanctuary, Torsa Strict Nature Reserve (TSNR), Blue Mountain National Park (BMNP) and Jigme Dorjee National Park (JDNP). These protected areas fall in Sarpang, Dagana, Paro, Haa, Wangdue Phodrang, Trongsa, Gasa and Punakha. Dzongkhags. Details of species plantations have been provided in the report. It is anticipated that SHLS will not be established in habitations in these protected areas due to constraints of accessibility.

(b) Forest and Flora

23. The dominant forest type in all 10 Dzongkhags is broadleaf. In forest areas of

Dzongkhags broad leaf forest ranges from 30-95%. The second dominant category of forest is mixed conifer forest. The forests in the protected areas mainly comprise of Subtropical forests, warm broadleaved forest and cool broadleaved forests. The botanical and local names of species found in these forests have been given in the report.

(c) Wild Life

24. The wild life has been reported in forest areas. There are 76 species of fauna

found in the forests of project areas. These have been listed in the report. At habitations these are not expected. Installation of SHLS will be in the habitations only.

0.9.3 Economic Development

(a) Land Use, Industries and Agriculture

25. The predominant land use in project area is under forest. The average % of forest area in each Dzongkhag is 60% except Chukha and Dagana where forest percentages are 82 and 80 % respectively. The cultivable area is less than 8% in all ten Dzongkhags. The percentage of area under settlement is about 0.3%. The area under pastures is around 4%. Balance land use is in water bodies and rocky area. The area under settlement is very less due to the fact that population density of the country is 16 persons per square km.

26. Major crops produced in project area include maize, wheat, buckwheat, barley, mustard, finger millet and foxtail millet along with a wide variety of green vegetables. Potato producing areas are Haa and Paro. While orange is grown in almost all southern Dzongkhags of the country, cardamom, areca

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nut, ginger, guava, lemon, banana and mango are also grown extensively in plain areas close to Indian border.

27. Most of the existing industrial establishments in Bhutan are small scale or

cottage industries. In project area there are industries in Samtse Sarpang and Chukha. Phuentsholing the biggest industrial area is located in Chukha. There is good growth potential for industries in Gelephu. A new airport is planned at Gelephu. Two major hydro power project of the country Chukha Hydro Power Ltd. and Tala Hydro Power Ltd. are located in Chukha Dzongkhag.

(b) Administrative Infrastructure and Community Facilities

28. All district head quarters in the project area namely Sarpang, Chukha,

Damphu (Head quarter of Samtse) Dagana, Gasa, Paro, Haa, Punakha, Trongsa and Wangduephodrang have district administrative offices such as Forest, Revenue, court, etc. These also have amenities such as bank, post office and communication centers.

29. The community facilities such as schools, health facilities exist at Gewog and Dzongkhag level. Almost 50% population has access to piped water supply.

(c) Transportation

30. Transportation facilities in all Dzongkhags are through road and mule tracks.

Remote locations on high elevations are connected through mule track. The only international airport of the country is in Paro Dzongkhag and at Paro. There is no rail head in any of the Dzongkhags. One airport is proposed at Gelephu in Sarpang Dzongkhag.

(d) Electricity and Communication

31. The household close to Dzongkhag head quarters are electrified through grid

extension.. As per information available on Dzongkhag web site number of house hold electrified are 1563 in Samtse, 2197 in Sarpang, 10323 in Chukha, and 1490 in Wangduephodrang. In other Dzongkhags exact number of household electrified is not known but electrification is around 70%.

32. All Dzongkhag head quarters are connected by telephone. All Dzongkhag

towns have mobile phone connectivity.

(e) Tourism Potential

33. The majority of tourists visit the Dzonghags which have tourist resources such as Paro, Punuakha, and Wangduephodrang. These Dzongkhags account for over 77% of the total bed nights. Balance 7 Dzongkhags have very poor tourism potential due to poor infrastructure facilities.

34. Gasa is also a popular trekking destination because it has a number of

trekking routes, such as the 24 day Snowman trek in Lunana, and 2 week Lingshi-Laya-Gasa trek starting from Paro and ending in Punakha, the Gasa-Laya trek and the 2 week Masagang trek.

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0.9.4 Social and Cultural Resources

(a) Demography

35. The population of Bhutan includes many ethnic groups such as the Sharchops from the east, Ngalongs from the west, Khengpas from the central region, nomads from the north and Lhotshampas from the south. These (and others) are all found in project area. Because of the mix of ethnicities a wide variety of dialects is spoken, of which Dzongkha, Khengkha, Sharchop and various dialects of Nepali are the most common. The majority of the population is Buddhist (around 70%) and the remainders are mainly Hindu, mostly in the southern areas.

36. The project area has a sex ratio of 1:1. In project area about 70% of the

population is rural residents while 30% is urban dwellers. The average number of family members in each household is 4.7 in project area. The employment rate is about 40%. Around 79% of the households in the Dzongkhag own land, 59% own their home, 8% own their own business and 15% own a vehicle.

(b)History and Cultural

37. There are few culturally important monasteries and other important culture

structures in Wanagdue, Punakha and Paro. The details of these have been given in the report.

38. In Bhutan traditions are followed religiously. The men and women wear their

traditional dress Kho and Kira. In almost all ten Dzongkhags of project area traditional dress is worn. In Gasa Dzongkhag Layaps (from Laya) and Lunaps (from Lunana) are unique because they have their own dress, language, culture and tradition.

0.10 Environmental Impacts and Mitigation Measures 39. No impacts during construction and operation have been identified on

ecological sensitive and protective areas such as JSWNP, RMNP, BMNP, JDNP National Parks, Torsa Strict Nature Reserve (TSNR) and Phibsoo Wild Life Sanctuary in the project area. The other environmental attributes where no impacts have been identified during construction and operation are as follows: Physical Resources- Geology, climate, ambient air quality, Surface

water sources and quality, Ground water sources and quality and Noise levels, Rural services/utilities (water supply, electricity, and telephone lines, etc.)

Ecological Resources- Protected areas, Biodiversity, rare and endangered species, wild life, and biodiversity.

Economic Development Resources- Land use, industries, agriculture, tourism, transportation, electricity and communication, and administrative infrastructure

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Social and Cultural Resources- Demography, History and culture, involuntary resettlement

40. The only impact identified on topography is that PV panel of SHLS will be visible. This will be permanent impact and will start from installation phase.

41. The other impact identified during operation phase is disposal of used batteries. If the batteries are disposed off in open land then they will contaminate the soil with lead which is poisonous and a heavy metal.

42. No adverse impact has been identified on biodiversity of project area.

43. Bhutan Power Corporation (BPC) is operating about 150 Customer Service Centers at village level in the entire Bhutan. The implementing agency of SHL system project is Renewable Energy Division (RED) of MOEA. The RED will have a memorandum of understanding with BPC for operation and maintenance of SHLS. The village technician of BPC will provide operation and maintenance services to SHL systems. If battery is not working and to be replaced the village technician will arrange local labour to carry the used battery to BPC’s nearest customer service centre. DOE SHL system Operation and Maintenance manger will arrange a truck to pick up used batteries stored at BPC’s customer service centers periodically. These batteries will be shipped to Phuentsholing. Thereafter these batteries will be sent to authorized battery recyclers in India. A leak proof used battery collection system will be developed. Hence no impacts are anticipated on soils and environment of the project area.

44. Since minor visible changes in topography are permanent and not pinching

to the eyes, therefore, no mitigations are warranted for this.

45. The proposed SHLS project will use solar energy for lighting in rural house hold. The solar energy is a clean, sustainable and renewable energy. The project will have a host of environmental and social benefits, including:

Use of clean and sustainable solar energy

Reduction in kerosene and candle consumption for lighting

Reduction in green house gas emissions as a consequence of reduction in kerosene consumption

No social issues and no cutting of trees

Cost effective

Direct and indirect Employment opportunities

No loss of energy in transmission

0.11 Analyses of Alternatives

46. Three possible alternatives have been considered for the comparison. The

comparative summary and alternatives are given below:

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Parameters NO Project

Scenario

Project Scenario Other form of Energy

(Small Hydro)

Economic

cost

Use of

kerosene/candles

is financially very

cheap.

SHLS will cost

about Nu 30,000

The RGOB is

installing the SHLS

free of cost but

10% cost of spare

parts will be

charged from the

customers

High cost as well as

may not be feasible to

install due to terrain

and techno-economic

reasons

Will take a long time to

finalise proper

locations and target of

electrification will not

be achieved.

Developme

ntal impacts

& people’s

perception

Village/Gewog

considered

underdeveloped

Community will be

considered

developed

Community will be

considered developed.

Social

benefit

The lighting is

poor in kerosene

and candles

burning. This

poor lighting will

cause problem in

working and

studying

Clean and

renewable energy

The light quality

will be good for

study and other

domestic activities

It can be installed

anywhere without

any problem.

No significant

recurring cost as

O&M will be

subsidized

Hydropower is also

clean energy. But

during winter season

due to low flow in

rivers the functioning

of small hydro is

questionable

Electricity supply at

many villages not

possible due difficulty

in extending grid due

to terrain conditions

Environmen

tal impacts

There will be

continued

impacts due to

emissions of

green house

gases due to

burning of fossil

fuels. Hence

negative impacts

on environment

No environmental

impacts

Green house gas

emissions will

reduce.

Effective and leak

proof battery

collection planned.

Extending grid will

involve cutting of trees

in the Right of Way of

grid. This will have

negative impacts on

forests. Many a times

extending grid from

small hydro may not be

possible.

xvi

Parameters NO Project

Scenario


(Small Hydro)

Health Negative impact

on health due to

smoke generation

Positive impact on

health as solar

energy is a clean

form of energy

Positive impact on

health

47. Based on the comparison of all three alternatives it has been concluded that

project alternative is the best alternative for the achievement of target of RGOB for 100 % electrification of all households. The project alternative from environmental angle is also good.

0.12 Public Consultations and Information Disclosure 48. The public consultations have been carried out since inception stage of project

with a view to disseminate the information about project. The consultations were carried out at Institutional Level, local level and Dzongkhag level. The dates of consultations and level at which these have been done are summarised below:

S.

No

.

Date of

Consultation

Level Organisations/

Rural Locations

Objective

01 03-12-2009 Inception

workshop

by PPTA

Consultant

s

NEC,BPC, Ministry of

Agriculture and

Forests, Ministry of

Economic Affairs,

JICA, ADB

Objective of

workshop was to

invite views,

comments and

suggestions on

each component

of PPTA Project

02 08-12-2009 Institutiona

l

NEC for Environmental

clearance of SHLS

project

Director NEC

suggested to

submit concept

papers for each

component

03 17-12-2009

and 26-03-

2010

Dzongkha

g Level

Consultations with -

District head Chukha

for Wind Power site

location, local public at

Tsimalakha for wind

Power site suitability,

local public at Chukha

To explore

possibility of wind

power installation

at Chukha and

Tsimalakha,

enquiries from

public and

xvii

S.

No

.

Date of

Consultation

Level Organisations/

Rural Locations

Objective

for wind power site

suitability and for SHLS

installation, and rural

population Chukha

Dzongkhag for SHLS

installation

suggestion from

Dzongkhag head,

installation of

SHLS in

Dzongkhag rural

areas

04 12-01-2010 Local level Dobang Gewog in

Sarpang Dzongkhag

To inform public

about project and

to invite their

comments and

suggestions

05 15-01-2010 Local level Chhota Tsirang /Sisty

village in Sarpang

Dzongkhag

To inform public

about project and

to invite their

comments and

suggestions

06 19-01-2010 Local level Tongshto Village in

Tseza Gewog in

Dagana Dzongkhag

To inform public

about project and

to invite their

comments and

suggestions

07 23-01-2010 Local level Thasa village in Lajab

Gewog in Dagana

Dzongkhag

To inform public

about project and

to invite their

comments and

suggestions

08 28-01-2010 Local level Upper Majgaon village

in Patalay Gewog in

Tsirang Dzongkhag

To inform public

about project and

to invite their

comments and

suggestions

10 28-01-2010 Local level Tsakling To inform public

about project and

to invite their

comments and

suggestions

xviii

49. The comments, suggestions and concern of public and their addressal in the project preparation has been summarised below:

Issue/Concern Addressal under the Project

There are clouds in most

part of the year,

therefore, functioning

may be difficult (Issue

raised at Dagana)

The consultants team has collected solar

insolation (solar radiation) data for Dagana

Dzongkhag and available solar insolation is

sufficient for the effective operation of SHLS

Locals during public

consultations indicated

that they will prefer

supply through grid as it

will be more reliable

(Issue raised at most of

the locations)

Consultants told that extension of grid is not

possible on account of techno-economic reasons

due to this SHLS are being installed to achieve

100 % rural electrification by 2013.

Batteries of SHLS will be

costly and difficult to

transport in when there

will be requirement for

replacement

The first installation of entire SLHS will be free of

cost. The battery life is 3-5 years. The subsequent

battery replacement will be made available at

subsidized rates (Only 10% costs of spare parts

will be charged) by RED. The O&M will be

provided by BPC customer service centre. The

village technician will arrange a labour to pick up

the used battery to the nearest customer service

centre

The locals opined that

operation and

maintenance will be a

problem for them as they

have neither experience

nor have seen any

SLHS functioning

The O&M will be provided by BPC customer

service centre. At Renewable Energy Department

(RED) there will be a full time operation and

maintenance manager who will manage O&M of

SHLS project with the help of BPC customer

service centre.

Disposal of old batteries

and taking care of PV

panel will be a problem

The old batteries will be replaced by new ones

by village technicians. The old batteries will be

transported to nearest BPC customer service

centre. From customer service centre batteries will

be lifted in a truck arranged by RED SHLS O&M

manager for transportation to Phuentsholing.

These will be transported to India for recycling

Some people were The RED will procure all SHLS with good

xix


apprehensive that

defective SHLS may be

provided and will not

work

technical specifications mentioned in Chapter-3

and from a known manufacturer under warranty.

The question of defective SHLS does not arise.

50. At institutional level all people have welcomed project as this project will

provide clean energy and will help in achieving the target of 100 % electrification.

0.13 Grievance Redress Mechanisms 51. The SHLS project does not involve any acquisition of land and there is no

generation of emissions, effluents and solid waste also. The public complaints on environmental impacts are not anticipated as SHLS installation will be in the private house. RED will sign a Memorandum of understanding with BPC for O&M of SHLS in post installation phase. Currently BPC has 150 customer service centres across the country. All O&M complaints will be received at these Customer Service Centres either in person or through communication. On receipt of complaints village technician will attend the complaint. All complaints will be resolved within time frame of 7 working days. At Department of Energy (DOE) –Renewable Energy Division (RED) there will be a dedicated SHLS O&M Program Manager. The complaints from BPC service centres will also be forwarded to O&M SHLS Program Manager at RED for his record and analysis. This manager will be the focal person to receive and resolve any grievances. The manager will resolve the problem within a period of 2 weeks. No complaints related to environment are anticipated. In case there are any unforeseen environment related complaints these will also be resolved by O&M SHLS Program Manager. The O&M SHLS program Manager will also be responsible for EMP implementation. The RED will follow the open door policy to receive any suggestions to improve the functioning of SHLS. These suggestions will also be received at Customer Service Centres and office of SHLS at RED.

0.14 Environmental Management Plan (EMP) 52. The Environmental Management Plan is meant for mitigation/management/

avoidance of the negative impacts. For each mitigative measure to be taken, its location, timeframe, implementation and overseeing /supervising responsibilities are listed in the EMP. The EMP has been given in Table-9.

0.14.1 Environmental Management Plan (EMP) Cost 53. There is no exclusive EMP cost as this has been included in the other

project implementation costs.

xx

0 .15 Findings, Recommendations, and Conclusions

0.15.1 Findings

54. The findings of the SHLS project based on IEE prepared are as follows:

The SHLS project is environment friendly and it will help to achieve

RGOB target ‘Electricity to all by 2013’. It will help to electrify the

habitations where extension of grid is not possible on account of techno-

economic reasons.

The potential environmental impact identified is safe collection and

transport of used batteries from BPC customer service centres. For this

EMP has been prepared. There will be no short term or long term

adverse impacts on environment during installation and operation phase.

Life quality of rural population will improve and project will bring

prosperity. There will be direct and indirect generation of employment

due to project implementation.

Mitigation and monitoring measures have been developed in the EMP.

The EMP will be implemented by the O&M Program Manager at RED.,

RGOB regulatory agencies, and ADB. Public consultation has been

undertaken during project preparation. RED will follow an open door

policy for receiving complaints if any from the concerned household

owner of SHLS and will conduct additional consultations as necessary

during project implementation.

0.15.2 Recommendations

55. The DOE will select an agency through competitive bidding for leak proof collection of used batteries from customer service centres of BPC and for transportation of these batteries to Phuentsholing for onward transport to authorised battery recyclers in India.

56. A memorandum of understanding should be signed between BPC and RED

for O&M by the BPC village technicians 57. An orientation cum training program should be organised during installation

phase by O&M manager at RED for village technicians of BPC for preventive maintenance of SHLS and safe transport of used batteries to BPC customer service centres. Similar training program is needed during operation phase for selected agency (transporters) for used battery collection and transport from BPC customer service centres.

xxi

xxii

0.15.3 Conclusion 58. The SHLS Project will not result in any long-term significant adverse impacts.

The likely negative impacts will be avoided through safe collection system of used batteries. Environmental and social benefits of the Project and long-term investment program objectives outweigh the potential negative impacts.

59. Based on the environmental assessment activities conducted to date, the

Project is confirmed as environmental category ‘B’ and the IEE, including the EMP, is considered sufficient to meet the environmental assessment requirements of ADB, and RGOB. A full environmental impact assessment study is not required.

Chapter - 1 Background

0

1.1 Background

1. Bhutan is a mountainous country with settlements scattered all over numerous mountains and valleys. The remoteness of most settlements cut off by steep slopes and forests makes delivery of basic services such as electricity, telecommunications and other allied services economically very inefficient. The Royal Government of Bhutan (RGOB) intends to provide electricity to all by 2013. Due to terrain and topographic conditions, providing lighting to rural household and institutions is not possible due to techno-economic reasons. Keeping the objective of RGOB in mind Solar Home Lighting Systems (SHLS) have been planned to be installed at 1850 in number households under assistance from ADB grant. All installations will be in the remote rural areas where more than 90% poor live. These all SLHS will be installed in villages where electricity can not to be supplied through on grid electrification due to non extension grid on account of techno-economic reasons. The Dzongkhags selected under ADB grant assistance for SLHS installation are Chukha, Dagana, Gasa, Haa, Paro, Punakha, Samtse, Sarpang, Trongsa and Wangdue Phodrang. The Department of Energy (DOE) of Ministry of Economic Affairs (MOEA) will be the Executive Agency (EA) and Renewable Energy Division under DOE will be the Implementing Agency (IA).

1.2 Initial Environmental Examination (IEE) 2. The Initial Environmental Examination (IEE) is carried out to identify and

assess the potential environmental impacts from implementation of the SHLS project in rural areas to electrify the rural house hold and institutions. The SHLS will not involve any land acquisition. The solar panel will be installed on the roof top of the house. The other component of the SHLS such as Controller, Lumanaries (bulb/LED), Battery, wires and accessories will be inside the house. The current legislation of Royal Government of Bhutan does not require environmental impact assessment study for the implementation of SHLS. Proposed SHLS has been determined as Category B based on the Rapid Environmental Assessment described in the ADB’s Environmental Assessment Guidelines (2003) and ADB’s Safeguard Policy 2009. This IEE report is in accordance with ADB Safeguard Policy 2009 with due consideration to environmental legislation of Royal Government of Bhutan.

3. The IEE is prepared in order to meet the following objectives:

To provide information about the general environmental settings in the targeted Dzongkhags of SHLS in the country;

To provide information on potential impacts of the proposed SHLS project and characteristic of impacts, magnitude, distribution, and their duration;

To provide information on potential mitigation measures to minimize the impacts;

To provide information on Environmental Management Plan (EMP) to mitigate adverse impacts due to implementation of the project;

To meet the ADB requirements for SHLS project financing.

1

2

4. Field visits were made to collect the requisite information, for the preparation of IEE, from various Government departments and from other secondary sources (including public consultations).

1.3 Structure of IEE Report

5. The IEE report has been divided in to ten chapters. The coverage of each

chapter has been described below:

6. Chapter-1 The current chapter describes the general background of the project and requirement of IEE.

7. Chapter-2 describes Policy, Legal and administrative frame work of the

project. This chapter describes acts and rules promulgated by RGOB and their applicability to the project.

8. Chapter-3 describes brief technical details of SHLS, per unit cost and

implementing and executive agencies. 9. Chapter-4 covers environmental baseline description of the project area. The

coverage of baseline has been done under the sections on ‘Biophysical Environment’, ‘Ecological Environment’ and ‘Economic Development’.

10. Chapter-5 covers potential environmental impacts and mitigation measures

due to project implementation during installation and operation phases. 11. Chapter-6 covers analysis of alternatives. In this possible alternatives of

project have been analyzed on cost, environment and socio-economic factors. 12. Chapter-7 covers Public Consultations and Information Disclosures. The

public view, suggestions and opinion and their addressal has been covered in this chapter.

13. Chapter-8 describes grievance redress mechanism in the project. The

complaints of public how, who and when will resolve have been covered in this chapter.

14. Chapter-9 describes institutional arrangements of project implementation and

environmental management plan. 15. Chapter-10 describes findings, conclusion and recommendations of IEE

study.

1.4 Acknowledgements

16. The PPTA consultants thankfully acknowledge all cooperation received from

DOE, BPC, NEC, MOEA, Ministry of Agriculture and Forests, JICA and all Dzongdags of project area. The consultants will also like to acknowledge and thank for cooperation and guidance received from Mr. K. Ogino, Senior Energy Specialist ADB and Mr. S. Sasaki Environmental Expert of ADB.

Chapter - 2 Policy, Legal & Administrative

Framework

1

2.0 Policy, Legal & Administrative Framework

2.1 Policies relevant to Biogas Component 17. The Royal Government of Bhutan has enacted a number of Acts and Rules to

safeguard the environment in the country. The details of these Acts and Rules and their applicability to SHLS project have been provided in the following subsections.

2.2 Electrification Act 2001 18. Rural Electrification is strongly promoted in the Electricity Act, 2001. Part 7,

Section 61.1 states that ‘The Minister shall undertake to promote, support and provide rural electrification programmes through public and private sector participation in order to 1. achieve equitable regional distribution and access to electricity;

2. maximize the economic, social and environmental benefits of rural electrification subsidies;

3. promote extension of the grid and development of off-grid electrification;

4. promote renewable energy

19. Hence this SHLS project will help to achieve the aim of the Act to achieve

equitable regional distribution and access to electricity and promotion of renewal energy.

2.3 Forest and Nature Conservation Act (FNCA) 1995:

20. The Forest Act (1969) was the first environmental legislation in Bhutan and

brought all forest resources under government custody to regulate utilization. This was repealed with the enactment of the FNCA in 1995, which allows community stewardship of forests, and aims to provide protection and sustainable use of forests, wildlife, and related natural resources. Schedule I lists those wild animals and plants that are given full protection under the Act. The scheduled trees are not expected at locations of SHLS as these will be installed in the house of rural public. The FNCA establishes that all forests in Bhutan are Government Reserved Forests (GRF), and prohibits any development activity in these areas except with a permit. This Act will not be applicable to SHLS project.

2.4 Forest and Nature Conservation Rules (FNCR) 2000:

21. Under powers established by the FNCA, the Ministry of Agriculture

promulgated the FNCR in 2000, which was revised in 2006. Amongst other things the FNCR allows for: Allotment of land and land rights in GRF;

Prohibitions, restrictions and concessions in GRF;

3

Transport and trade of forest produce;

Declaration and administration of protected areas;

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

Enforcing penalties for offences related to these and other aspects of the FNCR.

22. None of these activities likely to be taken up in the SHLS project, therefore,

this act will not be applicable.

2.5 Protected Areas

23. Since 2008, there are now five National Parks, four Wildlife Sanctuaries and

one Strict Nature Reserve in Bhutan. These protected areas have conservation policies that state that all proposed development projects within the boundaries of the protected area will be subject to an EIA under the jurisdiction of the NEC. This initially included buffer zones outside the protected areas, but was extended to include Biological Corridors in 2006 by an addendum to the FNCR.

24. Biological Corridors (BC) are defined as “areas set aside to connect one or

more protected areas, which shall be conserved and managed for the safe movement of wildlife.” Although BCs do not have the same status as protected areas, activities such as new settlements, quarrying and mining, and leasing of land for grazing are prohibited. All other development activities, including construction of roads, electricity transmission and distribution lines, or any other structures, require a permit from DoF and an EC application to NEC, supported by an EIA.

25. The installation of SHLS will be within the houses of rural population and no

activity will be taken up in the protected areas and BCs, therefore, no impact will be there in these protected areas and BCs.

2.6 Land Act 1979 (Revised 2007)

26. The Land Act 1979 which provides the basis for land tenure in Bhutan was

revised in 2007 to streamline many provisions in the Land Act. One major change was the establishment of an autonomous National Land Commission Secretariat which has been given full responsibility for all matters pertaining to land registration. Also the 20 land categories have been reduced to seven categories in the revised Act including i) Chhuzhing (wetland), ii) Kamzhing (dry land) including orchard, iii) Khimsa (Residential land), iv) Industrial land, v) Commercial land, vi) Recreational and vii) Institutional land.

27. Powers over land management have now been decentralized to local

authorities like the Gewog Tshogdue, Dzongkhag Tshogdue, and Thromdes. These are empowered to resolve land dispute, endorse land transaction and

4

conversion of land categories. 28. Under this Act, there are provisions for acquisition of land by the Government,

if it is required for the benefit of the country. In such cases, the affected person will be compensated with substitute land from the same Dzongkhag or given cash compensation depending on the land classification as per the prevailing land compensation rate determined by the Act. If a house is acquired, compensation is paid on the basis of an evaluation carried out by a qualified engineer appointed by the competent authority. No land acquisition is planned for the implementation of SHLS project; therefore, this act will not be applicable.

2.7 RGOB Decentralization Policy 2002

29. The Dzongkhag and Gewog Yargay Tshogdue Acts were implemented in

2002 to support the Government’s decentralization policy and empower locally elected community bodies (DYTs and GYTs) with the authority and responsibility to plan and implement development programmes and activities, including those related to environmental management. Through this legislation the DYT is able to:

Make recommendations on activities with major environmental impacts;

Designate and protect sites and monuments of cultural or historical interest;

Designate and protect areas of special scenic beauty or biodiversity, such as Dzongkhag Parks and sanctuaries;

Establish and enforce Regulations to control noise pollution;

Prohibit construction of structures within 50 ft of highways;

The GYT is able to establish and enforce regulations to:

Control and prevent pollution of air, soil and water;

Ensure safe disposal of waste and adequate standards of sanitation;

Conserve and protect water resources, including rivers, streams, springs and lakes;

The GYT also has custody of communal lands and community forests and can prevent encroachment onto land and forest.

30. This policy will not be triggered due to implementation of this SLHS project as

there will be no acquisition of land.

2.8 RGOB Environmental Clearance Procedures

2.8.1 Environmental Classification

31. NEC decides the environmental classification of projects on receipt of the

Environmental Clearance (EC) application submitted by the project proponent. There are three possible outcomes:

5

6

i) NEC may grant Environmental Clearance on the basis of the EC

application if the application contains sufficient information and based on information submitted it is concluded that the proposed development will not have significant negative environmental impacts;

ii) NEC may deny Environmental Clearance on the basis of the EC application if the application contains insufficient information and it is clear that the proposed development will have significant negative environmental impacts that cannot be suitably mitigated;

iii) If the EC application contains insufficient information on the likely nature and extent of the environmental impacts of the project or the manner in which they will be mitigated, NEC will determine that an EIA is required.

2.8.2 Preparation of EC Application

32. The requirements of the EC application are set down in sectoral guidelines

that were revised with ADB assistance in 2006. The installation of Solar Home Lighting System is not included in the List of activities requiring environmental clearance.

33. The information required for environmental clearance is very specific, and in

all cases includes information on the applicant, the project, funding agency, the affected environment, potential impacts, mitigation, monitoring and public consultation.

34. There are three key elements of the EC application. These include the

provision of signed No Objection Certificates (NOC) from all affected stakeholders/households, Forestry clearance from the Department of Forest and Dzongkhag Administrative Approval.

2.9 Conclusion

35. Based on discussion above it is concluded that none of the policies/ Acts

mentioned above are directly applicable to the SHLS project. The installation of SHLS is not included in the list of activities published by NEC requiring environmental clearance. However, a series of discussions have been held with NEC and based on this discussion outcome a concept note was submitted by Department of Energy (MOEA) for obtaining formal waiver off of environmental clearance. Consequent to submission of this concept note NEC has given waiver off of environmental clearance. The SHLS project will help to achieve set target of ‘Rural Electrification Act, 2001’. The project will have a significant contribution in achieving the target of RGOB ‘Electricity for All by 2013’.

Chapter - 3 Description of the Project

2

3.0 Description of the Project

3.1 Need for the Project 36. Bhutan is a mountainous country and rural electrification through grid is not

possible due to techno-economic reasons at many rural households. RGOB has set a target of ‘Electricity for All’ by 2013. In order to achieve the set target installation of solar home lighting system (SHLS), in remote rural household where grid extension is not possible, has been found to be a feasible option. The project will provide electrification in poor rural households.

3.2 Basic Objective 37. The objective of the proposed SHLS project is to provide electricity to

households in remote, isolated rural areas with solar home lighting systems by 2013. The end recipients of the proposed program are households in rural areas where more than 90% of the poor live.

3.3 Location of Project 38. The SHLS project will be spread over 10 Dzongkhag of the country. The

numbers of targeted (Dzongkhag) wise household are as given below:

Table 1: No. of Targeted Households for Off-Grid Solar Home Lighting

Systems

S. No. Name of Dzongkhag Targeted Number of

House Hold

1 Chukha 563

2 Dagana 231

3 Gasa 200

4 Haa 170

5 Paro 44

6 Punakha 16

7 Samtse 177

8 Sarpang 177

9 Trongsa 12

10 Wanduephodrang 260

Total 1850

3.4 Details of Solar Home Lighting System 3.4.1 Proposed Solar Home Lighting System Specifications 39. The specifications for the proposed solar home lighting systems to be

7

installed take into account the transport costs to the remote mountainous areas and the improved system reliability to reduce the maintenance requirements. Table 2 shows the system components and specifications:

Table 2: Specifications of Solar Home Lighting System

S. No. Component Specifications

1 Solar Panel 80 WP

2 Charge Controller 10 Amps

3 Lumanaries 3 Watt WELD

4 Battery 80 AH@ c20, <32 kg

5 Wires As per locally available

6 Accessories As per locally available

40. The Department of Energy has undertaken a detailed analysis of SHLS performance and components in Bhutan, and the design recommended in this report is based on their work. The design accounts for weather conditions, Bhutanese solar insolation resources, cable losses, pane degradation factors, battery and charge controller efficiencies and aging of components over time. In this sense, the design is regarded as conservative, but will not disappoint in performance, and this is an important consideration when providing services to rural households where service and support is difficult.

41. Bhutan offers 4.25 kW/(m2day) as a solar resource. Taking into account an overall efficiency loss of 56% on the PV panel, and an additional loss of 30% due to battery inefficiency, cabling and environmental factors, the following design components have been selected:

3.4.2 Photo Voltaic (PV) Panel

42. The generation of the minimum operational amount of power for correct

system operation, even in the lowest solar availability months in winter requires the use of an 80 watt PV panel. Assuming the use of 3 x standard 11 watt CFL bulbs for 4 hours per day, it can be noted that 158 watt hours per day will be consumed, and hence the PV panel must produce this amount of power, plus efficiency losses, in order to ensure reliable light even in the winter months.

Load Rated

watts

Measured

amperes

Hours used

per day

Watt

hours/day

Light 1 11 1.1 4 52.8

Light 2 11 1.1 4 52.8

Night light 11 1.1 4 52.8

Total Watt-hours per day of energy use 158.4

8

43. Taking efficiency losses into account, the solar panel is required to generate a minimum of 206 watt hours per day in order to achieve an actual 158 watts of useable power at the light fixture terminals.

44. With an effective panel generation efficiency of 56%, the solar energy available for power generation per day is not 4.5 hours, but 2.52 hours. With a target of 206 watt hours per day, and 2.52 effective solar hours per day, an 80 watt PV panels is required.

3.4.3 Technical Details of SHLS

45. The suggested technical specification describes a SHLS that comprises the following key components:

1. An 80 Wpk PV panel, either mono or polycrystalline, made to full international standards and certifications.

2. A minimum 10 ampere charge controller, suitable for use with the battery type selected and with all reverse polarity and battery protection modes incorporated.

3. Deep cycles lead acid battery of flooded lead acid design, of not less than 90 AH @C10. The battery is to be supplied either fully charged, or with electrolyte supplied separately, and with the date of manufacture clearly marked. Terminals are to be bolt through type and not circular automotive posts.

4. 3 watt WLED lighting fixtures to supply not less than 150 lumens per watt. WLED fittings must fit standard available lighting fixtures and be reverse polarity protected.

3.4.4 PV Technical Specifications

a. Either mono crystalline or poly crystalline panel technologies are

acceptable.

b. The Solar Panels shall meet the requirements set in IEC 61215:2005.

c. Each module must be labeled indicating at a minimum: Manufacturer, Model Number, Serial Number, Peak Watt Rating, Voltage and Current at peak power, Open Circuit Voltage and Short Circuit Current of each module.

d. Solar panels shall have framed module with type A junction box (rain tight) accepting available good quality conduit/cable fittings.

e. Panels have to be packaged for safe transportation and prepared for rough handling and transport to remote, rural areas.

f. The solar panel shall have a certificate of compliance, issued by one of the major international recognized testing laboratories.

g. Performance warranty cover at least 20 years of operation.

9

3.4.5 Charge Controller

a. The regulator or charge controller shall protect the battery against

overcharge and excessive discharge, besides giving information to users on the general state of the system.

b. The charge controller shall ensure safe and reliable operation in a range of ambient temperatures from -5º C to + 40º C.

c. The “load voltage disconnect” (LVD) shall respect the established limits for the maximum discharge depth (DoDmax) of the battery (70%). Regardless of this condition, it should never be lower than 11.5 V.

d. Load disconnection must take no longer than 30 seconds as from the moment on which the disconnection voltage is achieved.

e. The “load voltage reconnect” must be between 0.9 and 1.2 V higher than the disconnection voltage.

f. The disconnection, reconnection and alarm voltages must have a precision of at not less than ± 0.5% (± 60 mV), and must remain constant through the full range of possible operation temperatures.

g. The “final charge voltage” (high voltage disconnect, HVD) must be 14.4 V for tubular battery. These values are to be interpreted at 25º C. The thresholds must be compensated in temperature, at the rate of between -18 to -24 mV/°C

h. The final load and replacement voltages must have a precision of at least ± 0.5% (± 60 mV)

i. In the case of ON-OFF regulators, the “replacement voltage” must be in range of 13 -13.5 V. These values are to be interpreted at 25º C.

j. The charge controller shall not use electro mechanic relays

k. The charge controller shall use a pulse with modulation (PWM) strategy to control the charging current.

l. The maximum parasitic current draw of the controller, when no LEDs are lit, shall not exceed 5 mA

m. The regulator must allow for the photovoltaic generator to effectively charge the battery for any voltage higher than 9 V.

n. The connection terminal must easily admit cables with a section of minimum 6 mm2.

o. The charge controller boxes must offer a protection of international protection standard (IP 22).

10

p. The regulator must be protected from reverse polarity connection errors on both the battery and the PV inputs.

q. The charge controller must prevent reverse current flow into the PV module at all times.

r. The regulator must resist, without any damages, any possible condition related to operation of the battery. In addition, it must be able to accept without any damage the maximum open circuit voltage of the PV panel, and be not less than 26 V.

s. The regulator must protect the loads against damage related to operation without a battery.

t. The regulator must be protected from excessive voltages induced by atmospheric discharges (static) through transitory suppression devices.

u. The acoustic noise coming from the regulator must be lower than 35 dB (A), as measured at a distance of one meter.

v. The regulator should not produce any interference, either radiated or conducted, in the radio frequencies: AM 530kHz – 1600 kHz; SW1: 2.3 MHz – 7 MHz; SW2: 7 MHz – 22 MHz, and in any operating condition.

w. The regulator must include, as a minimum, the following operating indicators:

a. Charging mode

b. State of battery: charged, half full and empty

c. Alarms: short circuit, excessive current, excessive voltage and load disconnect.

x. The model number, serial number, rated voltages and currents should be noted on the charge controller case

y. The load regulator must have a certificate of compliance, issued by any of

the major international laboratories, with one of the following standards:

a. Recommended Specifications PVRS 6/6A of the Photovoltaic Global Approval Program(PVGAP).

b. Universal Technical Standard for Solar Home Systems - Thermie B: SUP 995-96, ECDGXVII, 1998. Version 2, revised 2001(Reference Number of SHLS Standard).

z. A warranty of not less than 2 years of operation shall be provided.

3.4.6 Rechargeable Deep Cycle Battery

a. The battery should be a vented-type “heavy duty” tubular lead acid

battery of nominal value 12V. b. The battery may be either a flooded type design.

11

c. The nominal battery capacity shall be 90 AH @C10 d. The battery shall meet the requirements and recommendations given in

IEC 61427: 2005. e. The battery must ensure safe and reliable operation in the whole range

of ambient temperatures from -5º C to + 35º C. f. Technical specifications of the battery including the nominal 80 AH

capacity at a certain current intensity (e.g. I10, I20, I100 ), the number of cycles at different dept of discharge and maximum depth of discharge shall be clearly indicated.

g. Cycle life of the battery (i.e., before its residual life drops below 80

percent of the rated AH capacity), at I10 must exceed 1500 cycles when discharged down to an average depth of discharge (DOD) of 50 percent at the discharge rate of 10 hours.

h. The maximum permissible self-discharge rate is 5 percent of rated

capacity per month at 25 deg. C. i. The battery shall have a flat, bolt on type post terminal to allow firm and

effective electrical connections. Round, automotive type terminal posts are not acceptable.

j. The battery shall have a certificate of compliances, issued by any of the

major international testing laboratories. k. Batteries should be packaged in order to withstand transportation to

remote areas. In the case of flooded batteries it should be considered to provide the acid separately in a fully sealed, leak-proof container.

l. The manufacturing warranty must be not less than 2 years.

3.4.7 LED Lamp with Matching Holder

a. LED lamps shall have a nominal input voltage of 12V. b. The LED unit must ensure safe and reliable operation in the whole

voltage range of -10% to + 25% of the nominal voltage (10.8 V to 15 V), and in the whole range of temperatures from -5º C to +40º C.

c. The power consumption shall range from 1.4 to 3.6W d. The LED lamps must deliver at minimum a luminous efficacy of at least

125 lm/W (at 25 °C ambient temperature) e. The LED lamp must be fully protected against reverse polarity f. The lamp must be fully compatible with standard lamp holders.

12

g. The emitted light shall be cool or warm white. h. The wide angle shall be between 120° to 125°. i. Lamps should be marked with the manufacturer model number, rated

voltage, wattage and date of manufacture or batch number j. The manufacturer’s warranty shall cover at least 3 years.

3.5 Location of Project

46. The SHLS are planned to be installed in Chukha, Dagana, Gasa, Haa, Paro,

Punakha, Samtse, Sarpang, Trongsa and Wangduephodarang. The project implementation period will be 2011 to 2013.

Figure 1: Proposed Dzongkhags for SHLS Installation

3.6 Cost of Project 47. The component wise cost estimates of a single house hold are given below:

S. No. Component Specifications Quantity Unit Cost

(Nu)

Total Cost

(Nu)

1 Solar Panel 80 WP 1 15,920 15,920

2 Charge

Controller

10 Amps 1 720 720

3 Lumanaries 3 Watt WELD 3 1,800 5,400

4 Battery 80 AH@ c20,

<32 kg

1 5,100 5,100

5 Wires As per locally 1 1,030 1,030

13

14

S. No. Component Specifications Quantity Unit Cost

(Nu)

Total Cost

(Nu)

available

6 Accessories As per locally

available

1 500 500

7 Total Capital

Fixed Cost

- 28,670

8 Labour Cost 1 1,500 1,500

9 Total Cost 30,170

48. Total cost of project has been estimated as 62.0 million Ngultrum which is equivalent to US Dollars.1.5 millions.

3.7 Implementing and Executive Agencies 49. The Department of Energy (Ministry of Economic Affairs) will be the Executing

Agency (EA), and Department of Energy’s (DOE) Renewable Energy Division (RED) will be the Implementing Agency (IA). RED has managed the implementation of Bhutan Solar Electrification Program since 2006 and demonstrated good performance for project management of solar home lighting electrification project.

Chapter - 4 Description of the Environment

7

4.0 Description of the Environment 4.1 Physical Resources 4.1.1 Location

50. The Dzongkhags selected for SLHS project lie in Central, western and

northern parts of Bhutan bordering China, India and Tibet (autonomous region of China). The total geographical area of all ten Dzongkhags is around 21000 km square (approximately). The total geographical area of the country is 38394square km. Gasa Dzongkhag has a highest area of 4409.30 square km whereas Punakha Dzongkhag has least area of 974 square km.

51. There are about 50,000 households in all ten Dzongkhags. Out of these 40 -

50% are electrified. The minimum distance of targeted Dzongkhags from the capital city of Thimphu is around 52 km (Paro) and maximum distance is about 270 km (Samtse).The prominent towns in ten Dzongkhags are Gelephu(in Sarpang Dzongkhag), Punakha, Chukha, Haa Dagana, Sarpang, Gasa, Wangdue and Samtse. All towns mentioned above are head quarters of Dzongkhags except Gelephu. Due to its proximity to the Indian markets, Gelephu is the main centre of commercial activities in the Sarpang Dzongkhag. Samtse, Sarpang and Chukha Dzongkhags extend to Indian border (West Bengal State).

4.1.2 Topography, Geology and Soils

52. All ten Dzongkhags where SHLS are planned to installed lie in central,

northern and western part of the country with elevations ranging from 200m to 5600m above sea level. Parts of Haa have highest elevation of 5600 m. In these higher zones SLHS installation is not likely as there are no habitations. At the lower altitudes, the terrain is mostly flat or gentle and agriculture is the main land use. The topography of all Dzongkhags extends to broad fertile valleys where agriculture and settlement are usually concentrated especially near river banks between the altitudes as low as 200 m and high forested mountains of elevations at 5600m above sea level.

53. The area of the Dzongkhag varies from 974 sq km (Punakha) to 4038 sq. km

Gasa. The average percentage under forest cover in targeted Dzongkhags for SHLS is 64%. About 5.5% is under agricultural production. Chukha has highest percentage of forest in all 10 Dzongkhags. Within the forested area broadleaf forest dominates with percentages ranging from 30-95%. Second dominant category of forests in Dzonkgas is Conifer.

54. All the Dzongkhags fall within the Lesser Himalayan formation. This includes

a wide range of sedimentary and low grade metamorphic rocks, including argillites and metargillites, sandstones and quartzites, limestone, dolomite and gypsum. Gneisses underlie more than 70% of the country right down almost to the Indian border. The shumar formation and Manas formation also exist in some of Dzongkhags such as Sarpang. The Shumar formation comprises of alternating sequence of quartzite and phyllite/mica schist with impersistent bands of carbonate lenses of gypsum and sheet like mylonitised granite gneiss as well as basic silts. The Manas formation comprises of Dolomite,

15

Limestone, Phyllite and quartzite. Eastwards towards Gelephu and beyond, the quaternary conglomerate comprises mainly of sand, silt and clay. The valley along the Sarpang-Tsirang road is dominated by argillaceous and arenaceous sediments.

55. The soil types found in all 10 Dzonggkhags range from sandy, clay, loam to

sandy loam and clayey loam. Generally the soil in the alluvial low land river valleys is quite fertile and crops grow well as soil moisture is also adequate in the foothills. At lower altitudes, many of the slopes are covered with colluviums, a mixture of soil and stones deposited by slow creep and many small landslips and slumps. At slopes soils are shallow.

4.1.3 Climate

56. The climate in project area varies according to the altitude. The higher altitude

experience cool temperate climate with warm humid summers and chilly winters with snowfall in some parts in winter, while those in the lower elevations experience sub-tropical to temperate climate. The Wangduephodrang Dzongkhag is known as windy due to the strong winds that blow across the valley each day.

57. The relative humidity in project area ranges 63% to 90%, with an average of about 70%. The least humid period is during pre monsoon (March-May). The average mean temperature for the warmest months of June and July is about 20-300C, while the mean temperature for the coldest months of January and February is about 10-120C. In January and December months at locations of higher altitudes such as Gasa temperatures drop to minus 2.1 degree Celsius

58. The average annual rainfall ranges from 600 mm to 5,000 mm but sometimes

the precipitation becomes much large. The precipitation is heaviest during the months from June to September.

4.1.4 Air Quality

59. Air pollution in Bhutan is generated as a recent phenomenon and it can be

attributed to rapid urbanization. Diesel vehicles with poor quality of fuel are the major sources for the urban air pollution. There is no information available on the ambient air quality of all ten Dzongkhags because so far ambient air quality (PM, NOx and SO2) monitoring has only been conducted in Thimphu and Phuentsholing periodically. The average respirable particulate matter (PM10) concentration of 24.5 g/m3 in Thimphu is lower than internationally set PM10 concentration level of 40 g/m3. Since all ten Dzongkhags have a much lower population, construction and industrial activity and vehicles, the air quality is expected to be much better than that of Thimphu. Hence air quality is not a concern in project area. These will be within stipulated limits of NEC, if measured. The project will not add the air pollutants in the ambient air; therefore, ambient air quality is not a concern.

4.1.5 Surface Water Sources and Quality

60. Each Dzongkhag has perennial rivers and local streams for the drainage of

16

the area. The prominent stream are Maokhola Chu , Shetikahray Chu and Dawalakhola Chu in Sarpang, Wong Chu in Chukha, Paro Chu in Paro, Phegu Chu, Tong Chu, Pho Chu, Mochu and Punatsang Chu in Gasa, Tsang Chu, Dang Chu, Kisona Chu and Hangra Chu in Wangduephodrang, Pho Chu, Mochu, and Sankosh Chu in Punakha, Haa is also drained by tributaries of Wong Chu, Dagana is drained by Wong Chu tributaries and Trongsa by river system mentioned for Wangdue. Torsa River drains Samtse Dzongkhag. Figure-2 below shows River System of Bhutan. In addition to these rivers there are smaller streams that join these rivers in the respective Dzongkhags. During the monsoons the heavy rains often cause flash floods in the valleys which are very vulnerable to erosion due cultivation. Construction of embankments in the erosion prone areas and river training works are being undertaken as protection measures. Surface water quality data for project area is not available, but it is pristine as there are no pollution discharge sources to these rivers.

Figure 2: Major Rivers of Bhutan

4.1.6 Groundwater Sources and Quality

61. There are no data available on the groundwater. Ground water resources are

also abundant with springs emerging from basement rocks, old landslides and fluvial deposits. Groundwater in landslide and alluvial deposits has been estimated at an exploitable rate of 3 liters/ second/km2. Currently water quality monitoring is only conducted in the four major river system of Bhutan only. Generally the state of Bhutan’s ground water quality is still good but with expanding settlement along rivers there are localized pollution problems due to expanding settlement along rivers. The SHLS project will not require any ground water for construction or operation.

4.1.7 Noise Levels in Project Area

62. Data on measured noise levels is not available in the project area as currently

NEC is generating noise levels at Phuentsholing and Thimphu. Major contributors to the ambient noise levels are commercial activities and vehicular traffic. In project area these activities are not much therefore noise is expected within the stipulated limits of NEC for Rural and Residential areas (55 dB(A) during day, and 45 dB(A) during night). The SHLS project will not cause any noise generating activities during construction and operation.

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4.1.8 Aquatic Environment

63. A total of 41 indigenous fish species are known to occur in rivers and lakes of Bhutan. This includes eight exotic species like the coldwater trout, and seven species introduced for warm water aquaculture namely Grass carp (Ctenopharyngodon idella), Common carp (Cyprinus carpio), Silver carp (Hypothalmicthys molitrix), Catla (Catla catla), Rohu (Labeo rohita), Mrigal (Cirrhius mrigala). Some of the fish species found in the river in Sarpang are Schizothorax progastus (Asla), Schizothorax moleworthii, Acrossocheilus hexagonolepis, Crossocheilus latius, Tor putitora (mahseer), Tor tor (mahseer), Barilius barna, Barilius bendelisis, Puntius macropogon, Puntius sophore, Puntius ticto, Puntius titus, Barbus spp., Labeo dero, Garra annandalei, Garra gotyla, Danio aequipinnatus, Danio dangila, Brachydanio rerio, Botia Dario, Rasbora daniconius, Noemacheilous botia, Batasio, Mystus bleekeri, Mystus vittatus, Ompok pabda, Channa striatus and Mastacembelus armatus. The same species will be prevalent in the river system described above.

4.2 Ecological Resources

4.2.1 Protected Areas

64. Part of the ten Dzongkhags selected for SHLS installation fall in 6 protected

areas. The names of these areas are Jigme Singye Wangchuk National Park (JSWNP), Royal Manas National Park (RMNP) , Philbsoo Wild Life Sanctuary (PWLS),Torsa Strict Nature Reserve(TNSR), Black Mountain National Park(BMNP), and Jigme Dorji National Park (JDNP). The locations of SHLS installations in the habitation area of these protected areas are not anticipated as one of the criteria of installation is good connectivity to the habitations. This criterion has been kept for effective maintenance in the post installation period. The brief description of these protected areas is given below just for information purpose. Figure-3 shows the map of protected areas.

Figure 3: National Protected Areas and Biological Corridors of Bhutan

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(a) Jigme Singye Wangchuck National Park

65. Jigme Sigye Wangchuck National Park (1,723 km2) is located in the central part of the country and connected to the Royal Manas National Park to the south. It encompasses parts of Trongsa, Zhemgang, Wangdue Phodrang, Tsirang and Sarpang dzongkhas. With altitudes ranging from 1,500 m to 4,500 m, this park also covers a wide range of ecosystems from permanent ice peaks, alpine lakes and pasture, conifer and broadleaf forests. The Park is famous as the habitat of the threatened migratory Black-necked cranes, the White-bellied heron, Rufous-nevked hornbill, Satyrtragapan, and Ward’s trogon. About 22 mammal species have been recorded in this park including several endangered species such as Tiger, Common Leopard, Clouded Leopard, Himalayan Black Bear, Musk Deer, Red Panda and Golden Langur. As much as 395 species of birds have been recorded during surveys of which a number are of conservation interest. Around 5,000-6,000 persons live within the park and another 10,000-15,000 persons live within 3-5 km of the park boundary (NCD, 2004).

(b) Royal Manas National Park (1,023 km2)

66. This national park is adjacent to Jigme Singye Wangchuck National Park and to the south it forms a trans-frontier reserve with India’s Manas. It provides habitat for globally endangered species such as tiger, rhinoceros, elephant, leopard, gaur and pigmy hog and endemic species such as golden langur. 362 species of birds occur in the park, nine species of which are globally threatened (NCS, 1995). Parts of Sarpang fall within this Natinal Park, Pemagatshel Dzongkhang falls in the buffer.

67. The Royal Manas National Park is one of the most well known national parks

in Bhutan. It is famous because it forms a trans-frontier reserve with india’s Manas, which is world heritage site. At the same time, being adjacent to Jigme Singye Wangchuck National Park, it provides contiguous habitat for wildlife from the southern foothills to central Bhutan.

68. Long before it was gazetted as a national park, Royal Manas was maintained

as a Wildlife Preserve by the Government for many years since 1966. Later it was upgraded to a National Park in 1993 and expanded. The Royal Manas National Park with an area of 1,023 km2 covers parts of Sarpang (Taklai Gewog) and Zhemgang Dzongkhags.

69. The Royal Manas National Park is the richest park along the subtropical

ecosystems of the country with the highest area under broadleaf forest. Combined with the Jigme Singye Wangchuck National Park and Indian Manas in the South, it created a unique protected area complex across two countries. There are estimated 3,250 people residing inside the park.

(c) Phibsoo Wildlife Sanctuary

70. This 278 km2 Wildlife Sanctuary encompasses parts of Senge Gewog of Sarpang dzongkhag. It borders the Indian state of Assam to the south, Tsirang Dzongkhag to the north. Presently there is no conservation management plan as this sanctuary is targeted for operationalization during

19

the forthcoming 10th FYP. It is currently managed by the Phibsoo range under Sarpang Divisional Forest Office. The Sanctuary is unique for its natural Sal (Shorea robusta) forest and for its spotted deer (Axis axis). Other significant mammals species found here are Tiger, Asian Elephant and Golden Langur (NCD, 2004). The buffer of the Sanctuary is almost uninhabited. Since the Sanctuary is yet to be operationalized, the exact boundary of the Sanctuary is yet to be determined. (d) Torsa Strict Nature Reserve (TSNR)

71. The Torsa Strict Nature Reserve extends over 64960 ha, falling in two

Dzongkhags (Haa and Paro). The main activity is research on the biodiversity of this protected area. The reserve displays a variety of landscapes and ecosystems of westernmost temperate forest from broadleaved forests to alpine parks including the small lakes of Sinchulungpa. This area has no human habitation and is a military security area near the Chinese border. (f) Black Mountain National Park (BMNP)

72. The Black Mountain National Park is contained in three Dzongkhags

(Zhemgang, Wangdue, and Trongsa) over an area of 172,760 ha. It represents a wide range of ecosystems and habitat types including permanent snow-covered areas near Dorshingla Peak (4,925 m), alpine lakes and pastures and coniferous and broad-leaved forests. The reserve constitutes the largest and richest temperate forest nature reserve in the entire Himalayas. The combined area of BMNP and RMNP supports maximum number (449) of bird species among the Asian reserves. The grazing of Yaks in summer on the northern alpine areas of the park is the only major intervention in the park. (g) Jigme Dorji National Park (JDNP)

73. Jigme Dorji National Park covers 434,950 ha in four Dzongkhags (Thimpu,

Paro, Gasa, and Punakha).This park has the largest protected area and is natural conservatory of glaciers, alpine meadows and scrub lands, sub-alpine and temperate conifer forests, warm and cool temperate broad-leaved forests, major rivers and streams, and the flora and fauna that inhabit these ecosystems. The park harbours endangered or extinct species including the Takin, Snow leopard, blue sheep, musk deer, Himalayan black bear, marmots, red panda, tiger and several species of pheasants.

74. Several plants found in the park are valuable cultivars, useful for horticulture and have commercial, medicinal, traditional and religious value. Over 300 plants are currently used to make indigenous medicine, most of which are found in the park.

4.2.2 Rare or Endangered Species

75. Some notable species found protected areas mentioned above are the Tiger

(Panthera tigris), Elephant (Elephas maximus), Himalayan black bear (Selenarctors thibetanus), Sloth bear (Melursus ursinus), Leopard (Panthera

20

pardus), Gaur (Bos gaurus) and endemic species such as Golden Langur (Presbytis geei) and Spotted Deer (Axis axis).

76. Species such as the One-horned Rhinocers (Rhinocerors unicornis), Hispid

Hare (Caprolagus hispidus) and Pygmy Hog (Sus salvinus) are said to exist in Royal Manas but have rarely been sighted. Other commonly species include Barking Deer (Muntiacornis sumatraensis) Indian Porcupine (Hysterix indica) and Goral (Naemorhedus goral). In addition to this there are a number of snake species.

Table 3: Endangered or Vulnerable Species Expected in Protected Areas

Common Name Scientific

Name

IUCN Red

List

Category

Bhutanes

protection

Category

Golden Langur Presbytis geei EN Schedule I

Sloth Bear Melursus

ursinus

VU Schedule I

Himalayan black

Bear

Selenarctors

thibetanus

VU Schedule I

Clouded Leopard Neofelis pardus V Schedule I

Common Leopard Panthera

pardus

LC Schedule I

Tiger Panthera tigris EN Schedule I

Asian Elephant Elephas

maximus

E Schedule I

Leopard Cat Prionailurus

bengalensis

LC Schedule I

Capped Langur Trachypithecus

pileatus

EN Schedule I

Marbled Cat Felis

marmorata

VU Schedule I

Wild Dog Cuon alpines EN Schedule I

Gaur Bos gaurus V Schedule I

Spotted Deer Axis axis EN Schedule I

EN = Endangered, VU = Vulnerable, LR = Lower Risk, NT = Near threatened, LC = Least Concern (IUCN);

4.2.3 Biodiversity

77. The dominant forest type in all 10 Dzongkhags is broadleaf. In forest areas of Dzongkhags broad leaf forest ranges from 30-95%. The second dominant

21

category of forest is mixed conifer forest. The forests in the protected areas mainly comprise of Subtropical forests, warm broadleaved forest and cool broadleaved forests. Trees commonly found in the Subtropical zone which extends 200 up to 1000 m include Bombax ceiba, Ailanthus grandis, Dillenia pentagyna, Duabange grandiflora, Schime wallichii, Tetrameles nudiflora, Mangifere sylvatica, terminalia myriocarpa, Ostodes paniculata and species of Musa, Polyalthia, Castanopsis, Cinnamomum, Fisus and Grewia.

78. The warm brodleaved zone extends from the elevation of 1,000 to 2,000 m and comprises of species such as Alnus nepalensis, Macaranga spp. Altinga Excelsa, Castanopsis indica, Michelia excels, Bombax spp., Ficus spp., Terminalia spp., Acacaia., Dalbergia., Mussaendra roxburghii Rhaphidophora species, Maesa spp., Albizzia spp., Dichroa febrifuga and Engellhardia spicata.

79. The cool broadleaved forest occur from 2,000 to 5000 m and comprise mainly

of Betula alnodes, Elastotema spp., Symplocus spp., Lindera pulcherrima, Persea spp., Exbuckllandia populnea., Cantanopsis hystrix, Lithocarpus elegans, Eurya spp.,

4.2.4 Wildlife

80. A wide variety of fauna inhabits the forest areas including the protected

species listed in Table -3. A list of avifauna found or expected to be found Dzongkhags of SHLS project is given in Table-4. The Table-5 gives the list of protected species given in Forest and Nature Conservation Act 1995. No endangered species of flora fauna is anticipated at villages where SHLS are anticipated to be installed. These areas are already affected by human activities due to the transportation from/ to their villages. Therefore, no significant impact on flora, fauna or avifauna is expected due to the project activities.

Table 4: Avifauna of Project Areas (Based on Discussion with Forest officials and Published Sources)

S. No. Common name Scientific Name

1 Ashy Drongo Dicrurus leucophaeus

2 Ashy Woodswallow Artamus fuscus

3 Asian barred Owlet Glaucidium cuculodies

4 Asian Palm Swift Cypsiurus balasiensis

5 Asian Paradise-flycatcher Tersiphone paradisi

6 Barred Cuckoo Dove Macropygia unchall

7 Bar-winged Flycatcher-Shrike Hemipus picatus

8 Block Stork Ciconia nigra

9 Black-backed forktail Enicurus picatus

10 Black-crested Bulbul Pycnonotus melanicterus

11 Black-throated Sunbird Aethopyga saturate

12 Blue-throated Barbet Megalaima asisatica

22


13 Blue-winged Minla Minla cyanouroptera

14 Blyth’s Leaf Warbler Phylloscopus reguloides

15 Bronzed Drongo Dicrurus aeneus

16 Chestnut-bellied Nuthatch Sitta castanea

17 Chestnut-headed Bee-eater Merops leschhenaulti

18 Chestnut-tailed starling Sturnus malabaricus

19 Collared Owlet Glaucisium brodiei

20 Common Myna Acridotheres tristis

21 Common Stonechat Saxicola torquata

22 Common Tailobird Orthotomus sutorius

23 Crow-billed drongo Dicrurus annectans

24 Dollarbird Eurystomus orientails

25 Drongo Cuckoo Surniculus lugubris

26 Emerald Dove Chalcophas indica

27 Eurasian Tree Sparrow Passer montanus

28 Golden-fronted Leafbird Chalophaps indica

29 Great Barbet Megalamia virens

30 Great Hornbill Buceros bicornis*

31 Greater Neclaced

Laughingthrush

Chrysocolaptes lucidus

32 Greater Racket-tailed Drongo Garrulax pectoralis

33 Greater Yellownape Dicrurus pectoralis

34 Grey Wagtail Picus flavinucha

35 Grey Wagtail Motacilla cinerea

36 Grey-Backed Shrike Lanius tephronotus

37 Hill Myna Gracula religiosa

38 House Crow Corvus splendens

39 Indian Pond Heron Ardeola grayii

40 Large Woodshrike Tephrodornis gularis

41 Large-billed Crow Corvus macrorhynchos

42 Lesser Racket-Tailed Drongo Dicrurus remifer

43 Lesser Yellownape Picus chlorophus

44 Long-tailed Broadbill Pasarious dalhousiae

45 Long-tailed Shrike Lanius schach

46 Mountain Imperial Pigeon Ducula badia

47 Mountain Scops Owl Otus spilocephalus

48 Orange-bellied Leafbird Chloropsis hardwickii

49 Oriented Honey-buzzard Pernis Ptilorhyncus

23


50 Oriental Magpie Robin Cospsychus saularies

51 Oriented pied Hornbill Anthraceros albirostris

52 Osprey Pandion haliaetus

53 Pale-chinned Flycatcher Cyornis poligenys

54 Pin-tailed Green Pingeon Treron apicauda

55 Plain Flowerpecker Dicaeum concolor

56 Red-headed Trogon Harpactes erythrocephalus

57 Red-rumped Swallow Hirundo daurica

58 Red-tailed Minla Minla ignotincta

59 Red-vented Bulbul Pycnonotus cafer

60 River Lapwing Vanellus duvaucelii

61 Rifous Woodpecker Celeus brachyurus

62 Rufous-bellied Niltava Niltava sundara

63 Ruffous-necked Hornbill Aceros nipalensis

64 Scaly Thrush Zoothera dauma

65 Scarlet minivet Pericrocotus flammeus

66 Slaty-blue Flycatcher Ficedula tricolor

67 Small Niltava Niltava macgrioriae

68 Snowy-browed Flycatcher Ficedula hyperythra

69 Spangled Drongo Dicrurus hattentottus

70 Spotted Dove Streptoplia chinenesis

71 Streaked Spiderhunter Arachnotherea magna

72 White Wagtail Motacilla alba

73 White-rumped Shama Copsychus malabaricus

74 White-throted Kingfisher Halcyon smymensis

75 Wreathed Hornbill Aceros undulates

76 Yellow-bellied Fantail Rhipidura hypoxantha * Globally near threatened species.

Table 5: Species listed in the Forest and Nature Conservation Act

Schedule – IA - Protected wildlife

Common Name Scientific Name

Asian Elephant Elephus maximus

Clouded leopard Neofelis nebulosa

Golden Langur Presbytis geei

Musk Deer Moschus Chrysogaster

Pangolin Manis crassicaudata

Pigmy Hog Sus sylvanicus

24


Snow Leopard Panthera unica

Takin Budorcas taxicolor

Tiger Panthera tigris

Wild Buffalo Bubalus bubalis

Golden Masheer Tor tor

Spotted Deer Axis axis

Gaur Bos gaurus

Leopard Panthera pardus

Leopard Cat Felis bengalensis

Himalayan Black

Bear

Selenarctos thibetanus

Red Panda Ailurus fulgens

Serow Capricirnis

sumatraensis

Protected Birds


Black-Nacked Crane Grus nigricollis

Monal Pheasant Lophophorus impejenus

Peacock Pheasant Polyplectron bicalcaratum

Raven Corvus corax

Rufous-Necked

Hornbill

Aceros nepalensis

Schedule – IB : Protected Plant Species

Local Name Common Name Botanical Name

Agar/ agaru Eagle Wood Aquilaria malaccensis

Yartsa-guenboop Chinese Caterpillar Cordyceps sinensis

Pang-gen metog - Gentiana creassuloides

- Snow Down Lily Llyodia yummanesis

Tsher-ngeon Blue Poppy Meconopisis grandis

Kirang-shing Yew Taxus baccata

Bhreeng-geeradza

Ginseng

- Panax pseudo-ginseng

4.3 Economic Development Resources 4.3.1 Land use, Industry and agriculture

81. The predominant land use in project area is under forest. The average % of

forest area in each Dzongkhag is 60% except Chukha and Dagana where forest percentages are 82 and 80 % respectively.The cultivable area is less

25

than 8% in all ten Dzongkhags. The percentage of area under settlement is about 0.3%. The area under pastures is around 4%. Balance land use is in water bodies, and Rocky area. The area under settlement is very less due to the fact that population density of the country is 16 persons per square km. Due to the flat terrain, fertile sedimentary soil layers, and suitable climatic condition, most of the arable wetland is presently under rice cultivation in southern and central Dzongkhags namely Sarpang, Samtse, Chukha,Paro, Punakha and Wangduephodrang and Dagana. Due to its high production of rice, Sarpang is known as the ‘Rice bowl of Bhutan’.

82. Major crops produced in project area include maize, wheat, buckwheat,

barley, mustard, finger millet and foxtail millet along with a wide variety of green vegetables.Potato producing areas are Haa and Paro. While orange is grown in almost all southern Dzongkhags of the country, cardamom, areca nut, ginger, guava, lemon, banana and mango are also grown extensively in plain areas close to Indian border.

83. Almost every household in all 10 Dzongkhags owns some livestock mostly

local breeds to meet their need for dairy products such as milk, butter, cheese, meat and manure. The livestock also play very important role on the rural areas by providing draught power in the absence of mechanized farming. For those villages near the towns, any surplus farm products are taken to towns for sale.

84. Most of the existing industrial establishments in Bhutan are small scale or

cottage industries. In project area there are industries in Samtse and Sarpang and Chukha. Phuentsholing the biggest industrial area is located in Chukha. There is good growth potential for industries in Gelephu. A new airport is planned at Gelephu. Two major hydro power project of the country Chukha Hydro Power Ltd. and Tala Hydro Power Ltd. are located in Chukha Dzongkhag.

4.3.2 Administrative Infrastructure and Community Facilities

85. All district head quarters in the project area namely Chukha, Sarpang,

Dagana, Damphu, Gasa, Haa,Paro,Punakha,Trongsa, Phuentsholing and Wangdue have administrative offices such as Forest, Revenue, court, etc. These also have amenities such as bank, post office and communication centers.

86. Educational facilities (schools) reported in Chukha, Dagana, Gasa,Haa, Paro,

Punakha, Samtse, Sarpang, Trongsa and Wangdue Phodrang are 36,4,8,23,22,16,13,18,16 and 36 respectively. The health facilities are available in all 10 Dzongkhags. These facilities include referral hospitals, basic health units (BHU), and outreach clinics e.g. Chukha Dozonkhag has 3 hospitals and 9 basic health units and 28 outreach clinics,Wangdue Dzongkhags has 10 basic health units and 33 outreach clinics. Trongsa Dzongkhag has 5 basic health units and 21 outreach clinics,Gasa Dzongkhag has 4 basic health units and 8 outreach clinics. Punakha has 2 Basic Health Units, 3 out of reach clinics and Paro has one referral hospital,12 basic health units and 26 out of reach clinics. Livestock Extension Centre (LEC), Agriculture Extension Centre (AEC), and Rural Water Supply Schemes

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(RWSS) are also there in each Dzongkhag.

4.3.3 Transportation

87. Transportation facilities in all Dzongkhags are through road and mule tracks. Remote locations on high elevations are connected through mule track. The only international airport of the country is in Paro Dzongkhag at Paro. There is no rail head in any of the Dzongkhags. One airport is proposed at Gelephu in Sarpang Dzongkhag.

4.3.4 Electricity and Communication

88. The household close to Dzongkhag head quarters are electrified. As per information available on Dzongkhag web site number of house hold electrified are 1563 in Samtse, 2197 in Sarpang, 10323 in Chukha, and 1490 in Wangdue Phodrang. In other Dzongkhags exact number of household electrified is not known but it is believed based on discussion with RED that about 70% households are electrified.

89. All Dzongkhag head quarters are connected by telephone. All Dzongkhag

towns have mobile connectivity.

90. Telephone exchanges are there at every Dzongkhag head quarters. 4.3.5 Tourism

91. Before the 1970’s only the Royal family had the authority to issue invitations

to Bhutan, so almost all foreign visitors were Royal guests. The first time a large number of foreign visitors entered the kingdom was for the coronation of the fourth king in 1974, and this was followed soon after by the first paying tourists. Paro airport opened in 1983, and the newly-formed national airline, Durk Air started operating flights to Kolkata. Tourism grew gradually, and in 1991 the industry was privatized, and numerous tourist agencies were established. Visitor numbers have continued to rise, particularly over the past few years, despite the requirement for all tourists to pay a non-refundable daily tariff of US $200 to the tour operator, for the cost of accommodation, food and internal travel. Tourism is now the third largest provider of foreign exchange in Bhutan, earning US $ 18.5 million in 2005 with 13,600 visitors.

92. The majority of tourists visit the Dzonghags with tourist resources such as

Paro, Punuakha, and Wangdue Phodrang, which account for over 77% of the total bed nights. Balance 7 Dzongkhags have very poor tourism potential due to poor infrastructure facilities.

93. Gasa is also a popular trekking destination because it has a number of

trekking routes, such as the 24 day Snowman trek in Lunana, the 2 week Lingshi-Laya-Gasa trek starting from Paro and ending in Punakha, the Gasa-Laya trek and the 2 week Masagang trek. Out of the 27,636 (TCB, 2008) tourists that visited the country last year, only 4.4% of all the visitors visited solely for Trekking. During this year, there were approximately 400 tourists that travelled through Gasa. About 70 of them were visitors to the Gasa Tshachu (hot spring). The Tshacu is also very popular among locals as well

27

as people from other parts of the country who visit the hot springs for its medicinal and curative attributes.

4.4 Social and Cultural Resources 4.4.1 Demography

94. The population of Bhutan includes many ethnic groups such as the Sharchops

from the east, Ngalongs from the west, Khengpas from the central region, nomads from the north and Lhotshampas from the south. Because of the mix of ethnicities a wide variety of dialects is spoken, of which Dzongkha, Khengkha, Sharchop and various dialects of Nepali are the most common. The majority of the population is Buddhist (around 70%) and the remainder are mainly Hindu, mostly in the southern areas.

95. The project area has a sex ratio of 1:1. In project area about 70% of the

population is rural residents while 30% are urban dwellers. The average number of family members in each household is 4.7. The employment rate is about 34%. Around 73% of the households in the Dzongkhag own land, 57% own their home, 8% own their own business and 7% own a vehicle.

4.4.2 History and Cultural 96. There are few culturally important monasteries and other important culture

structures in Wanagdue, Punakha and Paro. In Paro Takshtang monastery is very famous and a tourist destination. Kichu Lakhang is also very famous. There are a few culturally significant sites in Wangdue. The Dzong located at the junction of the Pune Tsang Chu and the Dangchu was founded by Zhabdrung Ngawng Namgyal in 1638. The Gangtey Goenpa monastery built in the 17th centry is the Nyingmapa monastery in western Bhutan. It was founded by the grandson of Pema lingpa, Gyalse Pema Thinley in 1613 and later was expanded by Tenzin Legpau Dhendup. The Bey Langdra Nye is located in the center of a ridge at Bey Yul in Kazhi geog. It is famous as the site where Guru Rinpoche is said to have mediated for 7 days as well as suppressed the spirits that came to attack him.

97. Punakha Dzongkhag is significant historically as the place of enthronement for the first hereditary Monarch, King Ugyen Wangchuck on 17 December 1907. It served as the winter capital till 1955 and Punakha Dzong continues to be the winter residence of the central Monk Body. The Pungthang Dechen Phodrang in Punakha Dzongkhang was constructed by Zhabdrung Ngawang Namgyel in 1637 and is renowned for its historical importance.

98. The Dzongkhag has government owned, public as well as private Lhakhangs. These include the famous Talo Lhakhang, the Bjaching Karm nunnery and the newly built Lhakhang at Kabjisa.

99. In Bhutan traditions are followed religiously. The male and female wear their traditional dress Kho and Kira. In almost all ten Dzongkhags of project area traditional dress is worned. In Gasa Dzongkhag Layaps (from Laya) and Lunaps (from Lunana) are unique because they have their own dress, language, culture and tradition. The communities in Laya and Lunana

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29

Gewogs in Gasa Dzongkhag are semi-nomadic Yak herders who spend time between the villages and the high altitude Yak herding camps. Cheese and butter are prepared and stored to be sold or bartered either in Punakha or across the border. They have a distinct traditional dress made of yak wool that is suitable for the extremely cold and harsh winters that occur for 4-5 months. Due to the snow the high mountain passes are inaccessible causing much hardship for the communities and their yaks. During the winter months, many of the households migrate to lower regions where they purchase their food stock for the rest of the year.

100. In other Dzongkhags there are no culturally significant structures. Most of the

larger villages have a temple, and there are smaller Buddhist shrines both inside and outside inhabited areas, and various other places or objects that are of significance to the community, including particular trees, river and other locations.

Chapter - 5

Anticipated Environmental Impacts and Mitigating Measures

5.0 Anticipated Environmental Impacts and Mitigating Measures 101. This chapter, based on the baseline environmental features of SLHS project

areas described in Chapter-4, presents anticipated environmental impacts and mitigation measures during installation and operation phases. Categorization of the sub-project has been undertaken using Rapid Environmental Assessment (REA) checklist. REA uses sector-specific checklists that are developed based on the ADB’s past knowledge and experience. These checklists consist of questions relating to (i) the sensitivity and vulnerability of environmental resources in the project area, and (ii) the potential for the project to cause significant adverse environmental impacts. Based on REA checklist this project falls in category B.

5.1 Environmentally Insignificant Issues 102. Environmentally insignificant issues for the proposed project are identified as

under:

103. Though the Dzongkhags in which SLHS are located have forest areas, protected areas and local wild life, yet the SHLS project is not going to impinge on them as SHLS installation will be located in the residential houses. These habitations will be away from the environmentally sensitive features such as National Parks, Wild Life Sanctuaries Natural Reserve, and Biological Corridors.

104. Based on checklist following impacts have been regarded as insignificant and reasons are given hereunder:

Physical Resources- Geology, climate, ambient air quality, Surface water sources and quality, Ground water sources and quality and Noise levels, Rural services/utilities(water supply, electricity, and telephone lines, etc.)

Ecological Resources- Protected areas, Biodiversity, rare and endangered species, wild life, and biodiversity.

Economic Development Resources- Land use, industries, agriculture, tourism, transportation, electricity and communication, and administrative infrastructure

Social and Cultural Resources- Demography, History and culture, involuntary resettlement

5.2 Environmentally Significant Issues /Valued Environmental Component

(VEC) 105. Based on the REA checklist, field visit and discussions with various

government officials, following issues have been identified as valued environmental components and discussed below

Topography and Soil

106. Since, the impacts are associated with different phases of the project, these have been discussed under each identified VEC phase-wise and the

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mitigation measures have been proposed for each of the potential adverse impacts.

5.3 Topography and Soil- Environmental Impacts and Mitigations 5.3.1 Impacts

(a) Installation Phase

107. In the installation phase of the SHLS at individual household, there will not be significant impact on topography. The PV panel will be visible on the roof top of house. This small change in topography will be visible in the habitation. This change will be permanent. In installation phase there will be no impact on soil quality of the area.

(b) Post Installation (Operation Phase) Phase

108. During operation phase of the SHLS project, change in topography will be in

the form of PV panel visible at roof top of houses. This impact will be permanent.

109. During operation phase battery of SHLS will have to be replaced after 3- 5 years. This battery contains heavy metal lead and sulphuric acid. If the batteries are discarded in the surroundings then there will be soil contamination with lead and sulphuric acid in the area.

5.3.2 Mitigation Measures

(a) Installation Phase

110. Since an impact on soil has not been identified, therefore, no mitigation measures are warranted. The change in topography (due to visibility of PV Panel) will not be pinching to the eyes as humans are habitual to see utility poles, communication towers, etc. Hence no mitigation measures are warranted.

(b) Operation Phase

111. Bhutan Power Corporation (BPC) is operating about 150 customer service

centers at village level. The implementing agency of SHL system project is Renewable Energy Division (RED) of Department of Energy in MOEA. The RED will have a memorandum of understanding with BPC for operation and maintenance of SHLS. The village technician of BPC will provide operation and maintenance services to SHL system. If battery is discharged and to be replaced the village technician will arrange local labour to carry the used battery to BPC’s nearest customer service centre. DOE SHL system Operation and Maintenance manger will arrange a truck to pick up used batteries stored at BPC’s customer service centers periodically. These batteries will be shipped to Phuentsholing. After this DOE/RED will arrange to send these batteries to authorized battery recyclers in India. Hence there will be a leak proof battery collection system. Hence no impacts are anticipated on soils and environment of the project area.

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112. In case there is leakage of acid from the used battery during transport of the used batteries, the spilled acid should be diluted with abundant quantities of water. The village technicians and transporter should be trained for such accidental situations.

Since minor visible changes in topography are permanent and not pinching to the eyes therefore no mitigations are warranted for this.

5.4 Human Health 5.4.1 Impacts

Installation Phase 113. During installation phase no adverse impacts on health will be there as there

will not be generation of emissions, effluents or solid wastes.

Operation Phase

114. During operation phase no negative impacts are anticipated. There will be positive impact on health of population as currently they are using either kerosene or the candles for lighting. In both cases there is generation of smoke. This smoke has adverse impact on health. Due to SHLS installation there will be no generation of smoke and positive impact on health are anticipated.

5.4.2 Mitigation Measures

(a) Construction Phase

115. Since no adverse impacts have been identified, therefore, no mitigation measures are warranted.

(b) Operation Phase

116. Since no adverse impacts have been identified, therefore, no mitigation

measures are warranted.

5.5 Biodiversity 5.5.1 Impacts

(a) Installation Phase 117. No impact on biodiversity is expected during installation phase as there will

not be cutting of trees in open area, protected areas and Forests.

(b) Operation Phase

118. No impact on biodiversity is anticipated during operation phase as there is no generation of emissions, effluents or solid wastes. There is no generation of noise also due to functioning of SHLS.

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5.5.2 Mitigation Measures 119. Since no impacts have been identified during installation and operation

phases, therefore, no mitigation measures are warranted.

5.6 Positive Social and Environmental Benefits

120. The proposed SHLS project will use solar energy for lighting in rural house hold. The solar energy is a clean, sustainable and renewable energy. The project will have a host of environmental and social benefits, including:

Use of clean and sustainable solar energy;

Reduction in Kerosene and candle consumption for lighting;

Reduction in green house emissions as a consequence of reduction in kerosene consumption;

No social issues and no cutting of trees;

Cost effective;

Direct and indirect Employment opportunities; and

No loss of energy in transmission. 5.7 Conclusion

121. Based on the above discussion it is concluded that negative impacts due to

implementation of SHLS project are limited. Impacts are anticipated during operation due to replacement of used batteries after 3-5 years. These will be mitigated through leak proof collection system.

122. The DOE SHL System Operation and maintenance manager will be

responsible for operation and maintenance of SHL system and leak proof collection system of batteries. Hence, no adverse impacts are anticipated.

Chapter – 6 Analysis of Alternatives

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6.0 Analysis of Alternatives 123. A number of alternatives were considered for SHLS project. These

included a) No Project Scenario (No SHLS installation), b) Project Scenario and c) Use of other form of energy such as installation of small hydropower for lighting. Each alternative is discussed below.

6.1 No Project Scenario 124. The SHLS project has insignificant environmental impacts. The RGOB has

set a target of the year 2013 for electricity to all. In many rural areas extension of grid is not possible due to techno-economic reasons and terrain problems. In case project is not implemented then achievement of set target of RGOB for electrification will be impossible. The non availability of electricity will be an impediment in economic growth of rural poor. Non implementation of project has no environmental advantages too. Currently kerosene/candles used by rural population lighting results in green house gas emissions and smoke generation. Generation of both of these is not good for environment. Hence no project scenario will be detrimental to rural population, economic growth and environment.

6.2 Project Scenario 125. The project scenario will provide clean form of energy in the rural areas

and will result in reduction of green house emissions and smoke. There will be positive impact on health of people due to use of solar energy for lighting. There will be economic development due availability of solar lighting. The rural children will get good quality light for study. The working hours for domestic works for home makers will increase. This will give them more time to work in agriculture fields. This will lead the country to the path of growth. The project will help to achieve the target of RGOB for 100 % electrification in the country

6.3 To provide other form of Energy such as small Hydropower Projects 126. Hydro energy is also a clean form of energy. But installation of small hydro

in selected Dzongkhags of solar is not possible due to terrain conditions and techno economic reasons. Most of the selected villages for SHLS installation are located in difficult terrain where grid cannot be extended due to techno- economic reasons.

6.4 Comparison of Alternatives 127. Based on the discussion above all three options have been compared

in the Table-6 below:

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Table 1: Comparison of Alternatives

Parameters No Project

Scenario


(Small Hydro)

Economic

cost

Use of

kerosene/candle

s is financially

very cheap.

SHLS will cost

about Nu 30,000

The RGOB is

installing the

SHLS free of

cost, but during

operation phase

there will be

charge of 10%

from the owners

of SHLS system

The installation of

small hydro is not

possible in

Dzongkhags

selected for SHLS

due to techno-

economic reasons

Developme

ntal

impacts &

people’s

perception

Village/Gewog

considered

underdeveloped

Community will

be considered

developed

Community will be

considered

developed.

Social

benefit

The lighting is

poor in kerosene

and candles

usages. This

poor lighting will

cause problem in

working and

studying

Clean and

renewable

energy

The light quality

will be good for

study and other

domestic

activities

It can be

installed

anywhere

without any

problem.

No significant

recurring cost

as O&M will be

Hydropower is also

clean energy. But in

the Dzongkhags

selected for SHLS it

is not feasible to

install small hydro.

Electricity supply at

many villages is

also not possible

due to difficulty in

extending grid

because of difficult

terrain conditions

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Parameters No Project

Scenario


(Small Hydro)

subsidized

Environme

ntal

impacts

There will be

continued

impacts due to

emissions of

green house

gases due to

burning of fossil

fuels. Hence

negative impacts

on environment

No

environmental

impacts

Green house

gas emissions

will reduce

Effective and

leak proof

battery recycle

planned.

Extending grid will

involve cutting of

trees in the Right of

Way of grid. This

will have negative

impacts on forests.

But in the selected

villages grid

extension is not

possible due to

difficult terrain and

techno-economic

reasons.

Health Negative impact

on health due to

smoke

generation

Positive impact

on health as

solar energy is

a clean form of

energy

Positive impact on

health as clean

form of energy will

reduce smoke

generation in the

house. 6.5 Conclusion 128. Based on the discussion above it is concluded that installation of SHLS for

lighting in selected Dzongkhags in Central, Southern and Western Bhutan is best alternative among all other alternatives. The SHLS will have better impact on quality of life of family owning it. The successful running will lead to multiplication in other parts of country. There will be exploration of clean form of energy for the domestic lighting in rural areas.

Chapter – 7

Information Disclosure and Consultations

7.0 Information Disclosure and Consultations 7.1 Introduction 129. The successful implementation of the project requires co-ordinated efforts of

all stakeholders at different levels. Hence, consultation at different levels was used as a tool to inform and educate stakeholders about the proposed action both before and after the project implementation decisions were made. Public consultation was useful for gathering environmental data, understanding likely impacts and community’s needs and preferences.

130. Various alternatives could be evolved and sustainable mitigation measures

could be formulated through consultations. It assisted in identification of the problems associated with the project as well as the needs of the population likely to be impacted (benefited in present case). This participatory process helped in convincing the people’s perception and enabled the participation of the local people in the decision making process. The involvement of the various stakeholders ensured that the targeted population and other stakeholders are informed consulted and are allowed to participate at various stages of project advancements.

7.2 Objectives 131. The main objective of the consultation process was to to inform the stake

holders, seek their inputs and to maximize the benefits of the project. Other objectives of the consultation process were the following:

To promote public awareness about the proposed SHLS project in the project area of 10 selected Dzongkhags;

To educate the communities/individuals about benefits of SHLS system;

To solicit the views of communities/individuals residing in targeted Dzongkhags on the solar energy;

To gather inputs from the targeted population/individuals for improvement in project configuration and implementation procedure;

To stimulate community self evaluation and analysis; and

To ensure lessening of public resistance to change by providing them a platform in the decision making process

7.3 Methodology Adopted for Public Consultations 7.3.1 Stages and Levels of Consultation 132. The consultations were taken up right from start of PPTA project to finalise the

scope of project in all three components. For this project inception workshop was organised by the PPTA Consultants.

133. Public consultations have been held at three levels as follows:

Local level Chiwog (village) level/Geog (Block) level in targeted

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Dzongkhags for the establishment of SHLS.

Dzongkhag level consultations involving Dzongadag, local BPC officials , local forest department, Dzongkhag environmental officers; and

Institutional level consultations with National Environmental Commission(NEC), Bhutan Power Corporation Ltd., Department of Energy, JICA, ADB,etc.

Tools for Consultation

(i) Formal/Informal discussion

134. During visits to Gewogs in all Dzongkhags formal discussions have been

held with Dzondags and informal discussion with locals and Gups (village heads)

135. A checklist of questions was kept ready and responses were elicited from people. The FGDs have been held in targeted Dzongkhags. (ii) Institutional Level / Stake Holders Consultative Workshop (Inception

Workshop)

136. The institutional level consultations were held with representatives of institutions having stakes in implementation of the project. The institutions contacted included NEC, BPC, Department of Energy (DOE), Department of Live Stocks( Ministry of Agriculture and Forests), Policy Planning Department MOEA

137. An inception workshop was organised on December 03, 2009 by the PPTA consultants and all institutional stakeholders were invited with a view to invite comments and suggestions on the all three components of the project.

7.3.2 Contents 138. The consultation with institutional officials focused on the following issues.

Project description: - Need for renewable form of Energy from biogas, solar and wind

Advantages and low level of pollution(emissions/effluents/solid wastes)

The extent and nature of social and environmental impacts

People’s participation in planning, implementation and monitoring & evaluation stage.

7.4 Location Wise Summary of Consultations

139. The consultations at village levels and block levels were held in all 3

Dzongkhags. The details of discussion and views of participants are given below. The list of participants is available on request.

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7.4.1 Public Consultation at Tongtsho village-Tseza Geog, Dagana Dzongkhag on 19th January 2010

140. Seven households participated in the public consultation. The households of

Tongtsho were not happy in receiving solar home lighting systems as they preferred on-grid electricity connection. The participants also expressed concern on the feasibility of solar home lighting systems as the weather at Tongtsho is most of the time cloudy and under such a condition they are not sure whether a solar home lighting system would work in their village.

7.4.2 Public Consultation at Doban Geog, Sarpang Dzongkhag on 12th

January 2010

141. Fifteen participants participated in the public consultation. Households’ preference was for on-grid electricity connection. However, after the consultant explained the technical and economic constraints on the part of the government, participants showed their satisfaction with solar home lighting systems but insisted that they should be installed free of cost to them. One more concern expressed by the participants was that the batteries would be expensive and difficult to transport in case of replacement.

7.4.3 Public Consultation at Thasa Village, Lajab Geog, Dagana Dzongkhag

23rd January 2010

142. Five households participated in the public consultation and expressed that they would prefer getting connected with electricity distribution lines rather than solar home lighting systems. Their concern with solar home lighting systems was operation and maintenance of the systems as none of the people in the village have experience in solar home lighting systems while some of them have not even seen a solar home lighting system that is functioning properly.

7.4.4 Public Consultation at Upper Majgaon village, Patalay Geog, Tsirang

Dzongkhag on 28th January 2010

143. The four participants in the meeting raised their concern about the skills required to handle the solar home lighting systems. They indicated that were not choosy about solar home lighting systems verses on-grid electricity connection but were more concerned about replacement of batteries, handling the solar home lighting sets, disposing of the old batteries and taking care of the solar panels. They also stressed that the solar home lighting sets be provided free of cost to them. They also indicated they would be happier if the government can provide them with on-grid electricity connection if possible.

7.4.5 Public Consultation at Village Chota Tsirang/Sisty and Daragaon, Geog

Sengye, Sarpang Dzongkhag on 15th January 2010

144. There were 20 households participating in the public consultation. The participants were concerned about the type of solar home lighting systems that they will be provided because some of the participants had witnessed defective solar home lighting systems elsewhere. They were of the view that if solar home lighting systems that may not work are provided to them, then

39

they rather prefer on-grid electricity connection. The participants also raised concerns about short supply of electricity during rainy and cloudy days and also the danger of the solar home lighting sets being stolen by the miscreants from across the border in India. Overall, they preferred on-grid electricity connection.

7.5 Addressal of Public Concerns in the Project Design

145. The project has tried its best to address the issues raised during the Public Consultations. Summary of issues raised and addressal has been given below in Table-7.

Table 7: Addressal of General Issues and Concerns under the Project


There are clouds in most

part of the year,

therefore, functioning

may be difficult (Issue

raised at Dagana)

The consultants team has checked solar

insolation at Dagana Dzongkhag and available

solar insolation is sufficient of functioning of

SHLS

Will prefer supply

through grid as it will be

more reliable (Issue

raised at most of the

location)

Extension of grid is not possible on account of

techno-economic reasons due to this SHLS are

being installed to achieve 100 % rural

electrification by 2013

Batteries of SHLS will

be costly and difficult to

transport in case of

replacement

The first installation of entire SLHS will be free of

cost. The battery life is 3-5 years. The subsequent

battery replacement will be made available at

subsidized rates by RED. The O&M will be

provided by BPC customer service centre. The

village technician will arrange to pick up the

battery to the nearest customer service centre

Operation and

maintenance will be a

problem as people have

no experience and nor

have seen any SLHS

functioning

The O&M will be provided by BPC customer

service centre. At Renewable Energy Department

(RED) there will be a full time operation and

maintenance manager who will manage O&M of

SHLS project with the help of BPC customer

service centre.

Disposal of old

batteries and taking care

of PV panel will be a

problem

The old batteries will be replaced by new ones

by village technicians. The old batteries will be

transported to nearest BPC customer service

centre. From customer service centre batteries will

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be lifted in a truck arranged by RED SHLS O&M

manager for transportation to Phuentsholing for

recycling

Some people were

apprehensive that

defective SHLS may be

provided and will not

work

The RED will procure all SHLS with good

technical specifications mentioned in Chapter-3

and from a known manufacturer under warranty.

The question of defective SHLS does not arise.

7.6 Conclusion 146. Based on the above discussion it is concluded that all concerns of the

stakeholders have been taken into account in the project preparation. The suggestions of institutional stake holders have also been taken into account through inception workshop and through circulation of deliverables of consultants to all concerned departments of RGOB.

Chapter – 8 Grievance Redress Mechanism

8.0 Grievance Redress Mechanism

147. The SHLS project does not involve any acquisition of land and there is no

generation of emissions, effluents or solid waste also. The public complaints on environmental impacts against the project are not anticipated as SHLS installation will be in the private house. RED will sign a Memorandum of understanding with BPC for O&M of SHLS in post installation phase. Currently BPC has 150 customer service centres across the country. All O&M complaints will be received at these customer service centres either in person or through communication. On receipt of complaints village technician will attend the complaints. All complaints will be resolved in time frame of 7 working days. At Department of Energy (DOE) –Renewable Energy Division (RED) there will be a dedicated SHLS O&M Program Manager. The complaints from BPC service centres will also be forwarded to O&M SHLS Program Manager at RED for his record and analysis. This manager will be the focal person to receive and resolve any grievances. The manager will resolve the problem within a period of 2 weeks. In case there are any unforeseen environment related complaints these will also be resolved by O&M SHLS program manager. The O&M SHLS program manager will also be responsible for EMP implementation. The RED will follow the open door policy to receive any suggestions to improve the functioning of SHLS. These suggestions will also be received at Customer Service Centres and office of SHLS at RED.

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Chapter – 9 Institutional Requirements,

Environmental Management and Monitoring Plan

9.0 Institutional Requirements, Environmental Management and Monitoring Plan

9.1 Institutional Requirements 148. The SHLS project will be implemented and monitored by the Renewable

Energy Division (RED) under the Department of Energy (DOE) of Ministry of Economic Affairs hence RED will be the Implementation Agency (IA).

149. Department of Energy, Ministry of Economic Affairs will be the Executive

Agency (EA). Responsibility of EMP implementation will lie with SHLS O&M Program Manager. This O&M Program Manager will be appointed by RED.

150. RED shall be responsible for ensuring compliance to environmental

requirements of the ADB as well as National Environmental Commission (NEC). All reporting requirements will be done by SHLS O&M Program Manager.

151. Environmental Management Plan (EMP) will be a part of training program

to be given by the RED to village technicians of BPC posted at Customer Service Centres of BPC across the country. The transporter of used battery collection system will also be given training for safe handling and transport of used batteries.

152. All the statutory clearances (at national, Dzongkhag and local levels) if

required for the implementation of the SHLS would be obtained in compliance with the national/state/local laws and regulations and in accordance with ADB’s environmental policy and guidelines.

9.2 Environment Monitoring Plan 153. To ensure the effective implementation of mitigation measures and

environmental management plan, during installation and operation phase of the SHLS project, it is essential that an effective Environmental Monitoring Plan be followed. This monitoring plan is given in Table 8.

154. The RED will have a SHLS Program operation and maintenance

manager, who will also monitor the environmental management plan compliances. Hence O&M Program Manager will be a Designated Environmental officer in the SHLS project. During installation phase of SHLS the O&M Program Manager will train BPC village technicians and transporter of used batteries for safe handling and transport of used batteries.

155. During operation regular visits will be taken up by the village technicians

to educate the rural population in day to day maintenance of SHLS. At the time of visit these technicians will also check charging capacity of battery. SHLS Program O&M manager will also visit the SHLS installed to seek the views of public and to see actual functioning of SHLS. The suggested visit frequency for O&M manager is quarterly.

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Table 8: Environmental Monitoring Plan

Environmental Component

Project stage Parameter Location Duration / Frequency

Implementation Supervision

Handling, transport and safe storage at BPC customer Centre of used (non performing battery )battery of Solar Home Lighting System

Operation stage Leakage of acid and unauthorized disposal by the owner

Storage on impervious surface at BPC customer Centre

BPC customer service centre, and installation sites

During entire life of SHLS project

Village Technician of BPC

O&M manager at RED

Collection of used Batteries

Operation stage(During transportation of batteries to Phuentsholing)

leakage Trucks carrying used battery

During Transport

O&M manager at RED

DOE

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9.3 Environmental Management Plan (EMP)

156. The Environmental Management Plan is meant for mitigation/management/ avoidance of the negative impacts. For each mitigative measure to be taken, its location, timeframe, implementation and overseeing /supervising responsibilities are listed in the EMP.

157. The identified impacts and suggested mitigation measures with

institutional resonsiblities are tabulated in Table 9.

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Table 9: Environmental Management Plan (EMP)

Institutional Responsibility Project Stage -

Anticipated

Environmental

Issues and Impacts

Proposed Mitigation

Measures

Parameter to

be Monitored

Measurement

Frequency Implementation Supervision

Cost

A. Pre Installation Phase

1. Selection of location for installation of Solar Home lighting Systems

As far as possible plan installation of SHLS in habitations connected through a reasonable road/track so that transportation of discharged battery is easy to customer service centers

Locations finalisation for SHLS installation

Not Applicable

RED DOE Not applicable

2 Formulation of Schedule for Preventive O&M for installed SHLS

A preventive maintenance schedule should be formulated for the entire SHLS by O&M manager. This schedule will help to replace batteries likely to be replaced

Aspects to be observed by technicians as PV panel, accessories, luminaries, wires, strength of battery with multimeter etc.

Not Applicable RED DOE Not Applicable

B. Installation Phase

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Anticipated

Environmental

Issues and Impacts

Proposed Mitigation

Measures

Parameter to

be Monitored

Measurement


Cost

1. Disposal of waste material such as packing etc from installation sites

The packaging materials of SHLS should be properly disposed off

Plastic, packing if any should be disposed off solid waste disposal sites of Dzongkhags

During entire

installation

period

BPC village technician

O&M program manager

Included in O&M program budget

Training to BPC village technicians in preventive maintenance of SHLS and in safe transport of used batteries to customer service centre of BPC and for mitigation measure to be taken in the event acid leakage

The RED will organize a training program to BPC village technicians for preventive maintenance and safe transport to BPC Customer Service Centers. In case of leakage of acid they will be given training to dilute the spilled acid with abundant quantities of water

Not applicable Once during

installation

phase there

after annually

O&M program manager at RED

DOE Included in O&M program budget

C: Operation Phase

1. Preventive Maintenance of SHLS

Preventive maintenance of SHLS system

Electrical continuity in wiring, proper

As per preventive maintenance

BPC village technician

O&M Program Manager

Part of construction

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Anticipated

Environmental

Issues and Impacts

Proposed Mitigation

Measures

Parameter to

be Monitored

Measurement


Cost

orientation of PV panel, strength of battery with multi meter, luminaries functioning

schedule

warranty

2 Safe collection system of used batteries

Village technician will arrange to transport the batteries by hiring local labour to the nearest BPC customer service centre. Here these will be stored on impervious surface. The O&M manager on the basis of number of used batteries stored at customer service centre will arrange a truck to pick up these batteries for transportation to Phuentsholing for onward transportation to authorized battery recyclers to India.

Ensure that there is no leakage of acid from the batteries while transportation

Transport of used batteries on need basis

O&M Program Manager at RED

DOE

Included in O&M budget

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Anticipated

Environmental

Issues and Impacts

Proposed Mitigation

Measures

Parameter to

be Monitored

Measurement


Cost

The DOE will appoint a contractor for this.

The transporter will be trained to neutralize accidentally leaked acid with abundant quantities of water.

Leaked Acid

During transport

Transportor

O&M Program Manager

Included in O&M budget

9.4 Environmental Management Plan Cost

158. Based on EMP description above it is concluded that environmental issues in the installation and operation phase of SHLS are not there except safe collection and transport of used batteries. In initial 3 years no environmental issue is likely as battery life varies from 3-5 years. The cost to recycle batteries is included in O&M budget. The time input of O&M program manager for the implementation of EMP has also been included in the O&M budget. Hence there are no additional EMP compliance costs as these have already been accounted for in project implementation costs.

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Chapter - 10 Findings, Recommendation and

Conclusion

10.0 Findings, Recommendation and Conclusion 10.1 Findings 159. The findings of the SHLS project based on IEE prepared are as follows:

The SHLS project is environment friendly and it will help to achieve RGOB target for electricity to all by 2013. It will help to electrify the habitations where extension of grid is not possible on account of techno-economic reasons.

The potential environmental impact identified is safe collection and transport of used batteries. For this EMP has been prepared. There will be no short term or long term adverse impacts on environment during installation and operation phases.

Life quality of rural population will improve and project will bring prosperity. There will be direct and indirect generation of employment due to the project.

Mitigation and monitoring measures have been developed in the EMP. The EMP will be implemented by the O&M Program Manager at RED., RGOB regulatory agencies, and ADB. Public consultation has been undertaken during project preparation. RED will follow an open door policy for receiving complaints, if any, from the concerned farmers, and will conduct additional consultations as necessary during project implementation.

10.2 Recommendations

160. A memorandum of understanding should be signed between BPC and RED for O&M by the BPC village technicians

161. An orientation cum training program should be organised during installation

phase by O&M manager at RED for village technicians of BPC for preventive maintenance of SHLS and safe transport of used batteries to BPC customer service centres.

162. A training program should also be organised for transporters involved in

collection and transport of used batteries during operation phase. 10.3 Conclusion 163. The SHLS Project will not result in any long-term significant adverse

environmental impacts. The likely negative impacts will be avoided through safe collection and transport of used batteries from BPC customer Service Centres. Environmental and social benefits of the Project and long-term investment program objectives outweigh the negative impacts.

164. Based on environmental assessment activities conducted to date, the Project

is confirmed as environmental category ‘B’ and the IEE, including the EMP, is considered sufficient to meet the environmental assessment requirements of ADB, and RGOB. A full environmental impact assessment study is not required.

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