1. Case Study – Preparation of an EMP Integrated Ecosystem Management of Sunshine-Moon River Basin (SMRB) Project

3. Project Location Mushroom Sea Country B Country A Sunshine River Moon River Country X Country Y Red Nature Reserve RAMSAR site Mouth of Sunshine River HPP Earth Town Flower Town

4. Environmental Issues Surface and ground waters pollution due to untreated industrial and municipal wastewaters discharged directly into reservoirs/rivers; Environmental degradation (eutrophication, habitat loss, erosion) of coastal habitats, inland surface waters and marshes; Salt water intrusion in Sunshine Delta due to long term agricultural practices (irrigation)

5. Project Environmental Goals Reduction of water nutrients and other water pollution from municipal and industrial sources in selected municipalities in the Basin; Restoring and maintaining of coastal wetland ecosystem in Sunshine River through improved flood management, conservation of wetland sites and restoration of river banks; Reduction of salt water intrusion through a pilot scheme implemented in Sunshine river

6. Project Activities with possible Environmental Impacts Component 2 – Improved management and use of wetlands eco-systems and biodiversity Improvements in sites, services and management tools in Red Nature Reserve Ramsar site (Country A) and in two protected areas (Country B); Restoration and improvement of small scale water existing infrastructure to maintain water flows, address the problems of saltwater intrusion, flood management and erosion (e.g., rehabilitation of river gates, wooden irrigation wheels, restoration of river banks) ; Enhancement of HPPs and dams operational capacities to maintain environmental flow requirements and control flood management (e.g., dam safety monitoring equipment)

7. Project Activities with possible Environmental Impacts – cont’d Component 3 - High priority investments in water pollution control with low cost, appropriate wastewater technology improvements 1. Rehabilitation and upgrading of wastewater treatment systems in 3 municipalities in Country A and 2 in Country B including fixing leaking wastewater collection system and additional treatment infrastructure for reduction of nutrients (e.g., improvement of primary treatment and installation of small design for biological process); 2. Upgrading the industrial wastewater treatment system at a metallurgical factory in the Flower Town (Country A) (e.g., replacement of existing equipment, additional treatment equipment to reduce chromium and nickel pollution during production process)

8. Applicable Safeguard Policies Environmental Assessment category B (OP/BP 4.01); Natural Habitats (OP/BP 4.04) - Ramsar Safety of Dams (OP/BP4.37) Projects on International Waterways (OP/BP7.50 ) – legal policy that is not included in EMP

9. OP/BP 4.01 Environmental Assessment Preparation of an EA and site-specific Environmental Management Plans (EMPs); EA identified and analyzed the potential environmental impacts of the different activities (on air, groundwater, surface water, soil, flora and fauna); EA made recommendations and options for mitigation measures EMPs addressed mitigation measures and monitoring activities

10. OP/BP 4.01 and public disclosure Draft EA and site specific EMPs have been discussed during several consultations in both countries; Final EA and site-specific EMPs were disclosed in both countries in local language and at the Bank Infoshop in English

11. OB/BP 4.04 Natural Habitats (triggered because of positive investments in protected areas) Flood management in SMRB can be compromised by poor operations of HPPs or needs to meet other water use demands  maintenance of environmental flows is complicated Small-scale infrastructure to regulate the water regime in the Mini River within protected Red Nature Park in order to restore natural wetlands in the park; Improvements in sites which allows visitor access to sensitive ecosystems (promoting eco-tourism)

12. OP 4.37 Safety of Dams (policy application) inspect and evaluate the safety status of the existing dam and its performance history; review and evaluate the owner’s operation and maintenance procedures; and provide a written report of findings and recommendations for any remedial work or safety-related measures necessary to upgrade the existing dam to an acceptable standard of safety

13. OP 4.37 Safety of Dams cont’d (Study findings and recommendations) dam is located in a seismically active area installation of proper equipment would allow adequate response to earthquakes needed dam safety monitoring equipment and development of emergency and evacuation plans

14. Other safeguard policies Physical Cultural Resources (OP/BP 4.11) - The EMP notes that archaeological resources should be covered by chance-finds procedures’ clause incorporated in the contractors’ agreements; Involuntary Resettlement (OP/BP 4.12) - No land acquisition or relocation of people will be necessary for proposed infrastructure improvements

15. EMP Mitigation Plan Monitoring Plan Proposed Environmental Training Monitoring Equipment

16. Preparation of Mitigation Plan for a site- specific EMP Earth Town wastewater collection and treatment infrastructure

17. Preparation of Mitigation Plan for a site- specific EMP cont’d Participants will be asked to develop the Environmental Mitigation Plan for proposed municipal infrastructure investments in the Earth Town