Environmental & Social Impact Assessment (ESIA) of Asia Energys Phulbari Coal Project

Table of Content of Volume 1

VOLUME 1
TABLE OF CONTENTS
CHAPTER 1: INTRODUCTION
1

INTRODUCTION ........................................................................................................................1-1
1.1 THE STUDY.....................................................................................................................1-1
1.2 THE PROPONENT ..........................................................................................................1-2
1.3 STUDY AREA ..................................................................................................................1-4
1.4 OVERVIEW OF THE PROJECT ......................................................................................1-6
1.5 PLANNING AND APPROVAL PROCESS .......................................................................1-8
1.6 SCOPE OF THE ESIA .....................................................................................................1-9
1.7 ESIA STRUCTURE..........................................................................................................1-9

LIST OF FIGURES
Figure 1.1: Location of Site.................................................................................................................... 1-1
Figure 1.2: Key Activities for Definitive Feasibility Study ....................................................................... 1-3
Figure 1.3: Corporate Structure of Asia Energy PLC............................................................................. 1-4
Figure 1.4: Conceptual Mine Footprint .................................................................................................. 1-5
LIST OF TABLES
Table 1.1: Key Project Parameters for the Phulbari Coal Project .......................................................... 1-7
Table 1.2: Likely Mining Co-products - Phulbari Coal Project (GHD, 2003) .......................................... 1-8
Table 1.3: Coal Mining Lease and Coal Licences Held and Applied for by Asia Energy ....................... 1-8

CHAPTER 2: LEGAL & POLICY CONSIDERATIONS

2

LEGAL AND POLICY CONSIDERATIONS ...............................................................................2-1

2.1 OVERVIEW......................................................................................................................2-1
2.2 ENVIRONMENTAL CLEARANCE BY THE GOVERNMENT OF BANGLADESH ...........2-2
2.3 GOVERNMENT OF BANGLADESH LEGISLATIVE FRAMEWORK ...............................2-3
2.4 COMPLIANCE WITH GOVERNMENT OF BANGLADESH LAWS ................................2-10
2.5 COMPLIANCE WITH INTERNATIONAL CONVENTIONS ............................................2-10
2.6 COMPLIANCE WITH INTERNATIONAL GUIDELINES AND POLICIES.......................2-11

Appendix 2.1: Compliance with GoB Legislation...........................................................................2-14

Appendix 2.2: International Treaties Applicable to the Project and Asia Energys Action
Plan............................................................................................................................2-18
Appendix 2.3: Brief Summary of the Purposes of Each Policy or Guideline ...............................2-20
LIST OF TABLES
Table 2.1: IFC / World Bank Policies and Guidelines .......................................................................... 2-11

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CHAPTER 3: METHODOLOGY
3

METHODOLOGY .......................................................................................................................3-1
3.1 STUDY METHODOLOGY................................................................................................3-1
3.2 STATUS OF PROJECT STUDIES.................................................................................3-10
3.3 STUDY LIMITATIONS ...................................................................................................3-11

Appendix 3.1: The Study Team .............................................................................................................1

LIST OF FIGURES
Figure 3.1: Project ESIA Evaluation Process ........................................................................................ 3-2
LIST OF TABLES
Table 3.1: Reference Studies ................................................................................................................ 3-5
Table 3.2: Government and Multilateral Agency Sources...................................................................... 3-5
Table 3.3: ESIA Technical Studies ........................................................................................................ 3-6
Table 3.4: Residual Impact Likelihood Ranking..................................................................................... 3-8
Table 3.5: Significance Assessment Matrix ........................................................................................... 3-8

CHAPTER 4: CONSULTATION WITH STAKEHOLDERS

4

CONSULTATION WITH STAKEHOLDERS...............................................................................4-1

4.1 OBJECTIVES...................................................................................................................4-1
4.2 METHODOLOGY/CONSULTATION STRATEGY............................................................4-1
4.3 CONSULTED STAKEHOLDERS .....................................................................................4-6
4.4 IDENTIFICATION OF ISSUES.........................................................................................4-7
4.5 CONSULTATION IN FURTHER PROJECT PHASES ...................................................4-16

LIST OF TABLES
Table 4.1: Summary of Stakeholder Consultation to Date..................................................................... 4-5
Table 4.2: Land Acquisition Mitigation Suggestions .............................................................................. 4-9
Table 4.3: Resettlement Mitigation Suggestions ................................................................................. 4-10
Table 4.4: Impacts on Livelihoods and Occupations Mitigation Suggestions ...................................... 4-11
Table 4.5: Impacts on Infrastructure and Services Mitigation Suggestions ......................................... 4-12
Table 4.6: Impacts on Religious and Archaeological Mitigation Suggestions...................................... 4-12
Table 4.7: Community Relations Mitigation Suggestions..................................................................... 4-12
Table 4.8: Impacts on Indigenous Groups Mitigation Suggestions...................................................... 4-13
Table 4.9: Impacts on Natural Resources Mitigation Suggestions ...................................................... 4-13

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CHAPTER 5: PROJECT ALTERNATIVES

5

PROJECT ALTERNATIVES ......................................................................................................5-1

5.1 INTRODUCTION..............................................................................................................5-1
5.2 THE DO-NOTHING ALTERNATIVE...............................................................................5-1
5.3 PROCESS ALTERNATIVE ANALYSIS............................................................................5-2
5.4 PROJECT OBJECTIVES AND DEVELOPMENT PROPOSAL........................................5-2
5.5 COAL RESOURCE LOCATION.......................................................................................5-3
5.6 MINING METHOD ALTERNATIVES................................................................................5-3
5.7 MINE DESIGN ALTERNATIVES......................................................................................5-6
5.8 PREFERRED PROJECT DEVELOPMENT OPTION.......................................................5-7
5.9 ROAD AND RAIL RE-ALIGNMENT .................................................................................5-8

Appendix 5.1: Mine Design Alternatives and Recommendations ...................................................5-9

LIST OF FIGURES
Figure 5.1: Project Alternative Analysis for Coal Mining to Assess Project Development Options........ 5-2
LIST OF TABLES
Table 5.1: Mining Direction Alternatives ................................................................................................ 5-7

CHAPTER 6: THE PROJECT

6

THE PROJECT...........................................................................................................................6-1
6.1 OVERVIEW......................................................................................................................6-1
6.2 THE COAL .......................................................................................................................6-4
6.3 MINE PLANNING.............................................................................................................6-5
6.4 RELOCATION OF REGIONAL INFRASTRUCTURE.......................................................6-8
6.5 MINE LAYOUT AND INFRASTRUCTURE ....................................................................6-12
6.6 LAND REQUIREMENT AND ACQUISITION .................................................................6-20
6.7 CONSTRUCTION SCHEDULE (YEAR 1-YEAR 3)........................................................6-22
6.8 MINE OPERATIONS......................................................................................................6-27
6.9 COAL HANDLING AND TREATMENT ..........................................................................6-36
6.10 PLANT AND EQUIPMENT.............................................................................................6-46
6.11 WORKFORCE AND OPERATIONAL HOURS...............................................................6-46
6.12 WATER MANAGEMENT................................................................................................6-48
6.13 COAL TRANSPORT ......................................................................................................6-55
6.14 WASTE GENERATION AND MANAGEMENT ..............................................................6-57
6.15 HAZARDOUS MATERIALS MANAGEMENT.................................................................6-57
6.16 ENVIRONMENTAL PROTECTION AND MANAGEMENT.............................................6-58

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LIST OF FIGURES
Figure 6.1: Extent of Mine Operation..................................................................................................... 6-2
Figure 6.2: Project Schedule ................................................................................................................. 6-3
Figure 6.3: Mine Development Schedule............................................................................................... 6-7
Figure 6.4: Proposed Transport Relocations ......................................................................................... 6-9
Figure 6.5: Extent of Mine Activities for Year 25.................................................................................. 6-11
Figure 6.6: General Infrastructure Arrangement.................................................................................. 6-14
Figure 6.7: Detailed Mine Infrastructure Layout, Year 3 ...................................................................... 6-15
Figure 6.8: Schematic of Coal Handling Facilities ............................................................................... 6-16
Figure 6.9: Land Resettlement Phases ............................................................................................... 6-21
Figure 6.10: Construction Schedule .................................................................................................... 6-23
Figure 6.11: Major Infrastructure Features, end Year 1....................................................................... 6-24
Figure 6.12: Major Infrastructure Features, end Year 2....................................................................... 6-25
Figure 6.13: Major Infrastructure Features, end Year 3....................................................................... 6-26
Figure 6.14: A General Schematic of Mine Operations ....................................................................... 6-28
Figure 6.15: A General Schematic of Mining Pit.................................................................................. 6-29
Figure 6.16: Mining Stage Plan 2 Year 3.......................................................................................... 6-30
Figure 6.17: Mining Stage Plan 5 Year 10........................................................................................ 6-31
Figure 6.18: Mining Stage Plan 10 Year 35...................................................................................... 6-32
Figure 6.19: Conceptual Final Land Use Plan ..................................................................................... 6-37
Figure 6.20: A Schematic Representation of Coal Handling and Process........................................... 6-38
Figure 6.21: General Layout of Coal Handling Facilities...................................................................... 6-39
Figure 6.22: Coal Handling Infrastructure near the Pit......................................................................... 6-40
Figure 6.23A: Raw Coal Stockpile....................................................................................................... 6-42
Figure 6.23B: Typical Coal Stockpile................................................................................................... 6-43
Figure 6.24: Coal Handling and Preparation Plant .............................................................................. 6-44
Figure 6.25: Coal Product Stockpile .................................................................................................... 6-45
Figure 6.26: Organisation Structure..................................................................................................... 6-47
Figure 6.27: Simplified Mine Water Balance for Major Components ................................................... 6-50
Figure 6.28: Schematic Mine Dewatering and In-pit Water Management Diagram............................. 6-52
Figure 6.29: Schematic Showing Mine Water Management Collection Systems ................................ 6-53
Figure 6.30: Proposed Coal Transport Route...................................................................................... 6-56
LIST OF TABLES
Table 6.1: Coal Product Details ............................................................................................................. 6-5
Table 6.2: Mine Development Schedule................................................................................................ 6-6
Table 6.3: River Diversion Design Details (GHD 2005n)..................................................................... 6-10
Table 6.4: Mine Activities..................................................................................................................... 6-12
Table 6.5: Product Stockpiles.............................................................................................................. 6-41
Table 6.6: Mining Equipment Fleet (MineConsult 2005)...................................................................... 6-46

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CHAPTER 7: PROJECT ALTERNATIVES

7

EXISTING BIOPHYSICAL ENVIRONMENT ..............................................................................7-1

7.1 SCOPE OF INVESTIGATION..........................................................................................7-1
7.2 REGIONAL SETTING ......................................................................................................7-1
7.3 TOPOGRAPHY................................................................................................................7-2
7.4 GEOLOGY AND SOILS ...................................................................................................7-2
7.5 METEOROLOGY ...........................................................................................................7-11
7.6 AIR QUALITY.................................................................................................................7-15
7.7 NOISE ENVIRONMENT.................................................................................................7-22
7.8 SURFACE WATER HYDROLOGY AND WATER QUALITY .........................................7-24
7.9 GROUNDWATER RESOURCES AND WATER QUALITY............................................7-36
7.10 LAND USE .....................................................................................................................7-46
7.11 BIODIVERSITY ..............................................................................................................7-46

LIST OF FIGURES
Figure 7.1: Regional Setting ..................................................................................................................7-2
Figure 7.2: Topographic Elevation Contours .........................................................................................7-3
Figure 7.3: Geological Interpretation of Bangladesh .............................................................................7-4
Figure 7.4: Regional Conceptual Geological Cross-section: North to South Profile - Bangladesh ........7-4
Figure 7.5: Known Coal Deposits in Bangladesh..................................................................................7-5
Figure 7.6: Depth to Coal Main Seam. ..................................................................................................7-6
Figure 7.7: Location of Coal Deposit of Barapukuria & Phulbari Basins................................................7-6
Figure 7.8: Bangladesh Geotectonic Map. ............................................................................................7-7
Figure 7.9: Location of Recorded Earthquakes. ....................................................................................7-7
Figure 7.10: Distribution of Soil Test Pit Locations ................................................................................7-9
Figure 7.11: B Horizon Depth ..............................................................................................................7-10
Figure 7.12: Temperature and Rainfall Data from the BMD Dinajpur Station......................................7-12
Figure 7.13: Temperature and Rainfall Data from the Asia Energy Phulbari Station...........................7-13
Figure 7.14: Temperature and Rainfall Data from Two Project Automatic Meteorological Stations ....7-14
Figure 7.15: Relative Humidity and Barometric Pressure Data from Two Project Automatic
Meteorological Stations (November 04 to June 05) .......................................................7-14
Figure 7.16: Wind Roses for the Period November 04 to June 05 for the North Station (left) and the
South Station (right) .......................................................................................................7-15
Figure 7.17: Noise and Air Quality Monitoring Locations.....................................................................7-18
Figure 7.18: Dust Deposition Sampling Results (November 2004 to July 2005) .................................7-19
Figure 7.19: Measured Ambient Concentrations of PM10 (24 hour) ....................................................7-20
Figure 7.20: Typical Measured Noise Levels at Location AN07 from 01/02/05 to 03/02/05 ................7-23
Figure 7.21: River Catchments in the Northwest Region of Bangladesh.............................................7-25
Figure 7.22: Locations of Surface Water Features ..............................................................................7-26
Figure 7.23: Little Jamuna River Gauge Water Levels (G8), Phulbari.................................................7-28
Figure 7.24: Little Jamuna River Flow at Phulbari (G8).......................................................................7-28
Figure 7.25: Surface Water Level Readings (locations shown in Figure 7.22) ....................................7-29
Figure 7.26: Flow in the Little Jamuna, Khari Pul and Nalsissa River Systems...................................7-29
Figure 7.27: Water Levels in Khari Pul River.......................................................................................7-30
Figure 7.28: Radar Satellite Imagery over the Study Area ..................................................................7-32
Figure 7.29: Groundwater Monitoring Locations..................................................................................7-38
Figure 7.30: Conceptual Hydrogeological Model of the Study Area ....................................................7-39

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Figure 7.31: Long Term Water Level Results (BWDB data)................................................................7-40

Figure 7.32: Land Use in the Study Area.............................................................................................7-47
Figure 7.33: Distribution of Major Habitat Types..................................................................................7-49
Figure 7.34: Biodiversity Conservation for Threatened Species in the Study Area .............................7-55
LIST OF TABLES
Table 7.1: Geological and Hydrogeological Sequences within the Study Area .....................................7-5
Table 7.2: Summary of Sampling Results for PM10 (24 hour), PM2.5 (24 hour) and TSP(24 hour) over the Period
November 2004 to June 2005 ...........................................................................................7-19
Table 7.3: Summary of Sampling Results for NO2 and SO2 ................................................................7-21
Table 7.4: Summary of Measured Noise Levels from the Background Noise Monitoring Programme
(results in dB(A))................................................................................................................7-22
Table 7.5: Median Concentrations of Key Surface Water Quality Parameters in the Project Area......7-34
Table 7.6: Summary of Sediment Chemistry Results, February 2005.................................................7-36
Table 7.7: Irrigation Tubewell Details and Extent of Irrigation in the Study Area (SMEC 2005p) ........7-41
Table 7.8: Secondary Groundwater Chemistry Data Compared with the Bangladesh Drinking Water
Standards ..........................................................................................................................7-43
Table 7.9: Results of Groundwater Quality Monitoring (Median Values) , by Depth and Aquifer ........7-44
Table 7.10: Land Use within the 10 Kilometre Zone............................................................................7-46

CHAPTER 8: DESCRIPTION OF THE SOCIO-ECONOMIC ENVIRONMENT

8

DESCRIPTION OF THE SOCIO-ECONOMIC ENVIRONMENT ................................................8-1

8.1 SCOPE OF INVESTIGATION..........................................................................................8-1
8.2 NATIONAL CONTEXT .....................................................................................................8-5
8.3 DEMOGRAPHY .............................................................................................................8-10
8.4 SETTLEMENT PATTERNS AND LAND USE................................................................8-19
8.5 OCCUPATIONAL PATTERN AND LIVELIHOODS........................................................8-25
8.6 INFRASTRUCTURE AND SERVICES...........................................................................8-48
8.7 HEALTH .........................................................................................................................8-70
8.8 RELIGIOUS AND CULTURAL .......................................................................................8-75

LIST OF FIGURES
Figure 8.1: Household Survey Status Map ............................................................................................ 8-3
Figure 8.2: Resettlement Survey Status Map ........................................................................................ 8-4
Figure 8.3: Upazilas and Unions in the Study Area ............................................................................... 8-8
Figure 8.4: Villages in the Study Area ................................................................................................... 8-9
Figure 8.5: Households in the Study Area, 2004 (Kamal and Ashan, 2005)........................................ 8-11
Figure 8.6: Ten Yearly Population Projections within the 5 Kilometre Zone (Kamal & Ashan, 2005) .. 8-12
Figure 8.7: Ten Yearly Population Projections within the Study Upazilas (Kamal & Ashan, 2005)...... 8-13
Figure 8.8: Household Composition, 2005 .......................................................................................... 8-13
Figure 8.9: Sex Ratio in the Study Area (based on Kamal & Ashan, 2005)......................................... 8-14
Figure 8.10: Sex Ratio (based on Asia Energy/SMEC Household Survey, 2005)............................... 8-15
Figure 8.11: Age-Sex Pyramid of the Enumerated Persons ................................................................ 8-15
Figure 8.12: Religious Affiliation in the 5 Kilometre Zone, 2005 .......................................................... 8-16
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Figure 8.13: Religious Affiliation by Upazila, 2005 (5 Kilometre Zone)................................................ 8-17

Figure 8.14: Ethnicity of Households in the 5 Kilometre Zone, 2005 ................................................... 8-18
Figure 8.15: Ethnicity by Upazila, 2005 ............................................................................................... 8-18
Figure 8.16: Households Not Owning Their Own House in the Study Area, 2005............................... 8-20
Figure 8.17: Building Material of Roof of Main House, 2005 ............................................................... 8-21
Figure 8.18: Land Ownership by Type, 2005....................................................................................... 8-23
Figure 8.19: Land Transactions, 2005................................................................................................. 8-23
Figure 8.20: Occupations of Household Members 15 Years and Older, 2005..................................... 8-26
Figure 8.21: Breakdown of No Occupation Category......................................................................... 8-26
Figure 8.22: Place of Work .................................................................................................................. 8-27
Figure 8.23: Reported Sufficiency of Crops......................................................................................... 8-28
Figure 8.24: Sale of Crops................................................................................................................... 8-29
Figure 8.25: Percentage of Households Owning Trees in the Study Area .......................................... 8-29
Figure 8.26: Numbers of Fruit Trees Owned by Households in the Study Area .................................. 8-30
Figure 8.27: Numbers of Timber Trees Owned by Households in the Study Area .............................. 8-30
Figure 8.28: Number of Households Owning Livestock in the Study Area .......................................... 8-32
Figure 8.29: Pond Ownership in the Study Area.................................................................................. 8-35
Figure 8.30: Reported Sources of Income, 2005................................................................................. 8-39
Figure 8.31: Reported Monthly Household Income, 2005 ................................................................... 8-40
Figure 8.32: Main Expenditure Items, 2005......................................................................................... 8-41
Figure 8.33: Reported Monthly Household Expenditure, 2005 ............................................................ 8-41
Figure 8.34: Household Loan .............................................................................................................. 8-42
Figure 8.35: Household Loan Holdings ............................................................................................... 8-42
Figure 8.36: Income Sources of Female-Headed Households ............................................................ 8-44
Figure 8.37: Reported Monthly Household Income for Female-Headed Households, 2005................ 8-44
Figure 8.38: Education Level of Female vs Male-Headed Households, 2005 ..................................... 8-45
Figure 8.39: Road Network of the Study Area .................................................................................... 8-50
Figure 8.40: Existing Power Supply Network in Phulbari Paurashava................................................. 8-53
Figure 8.41: Access to Electricity......................................................................................................... 8-54
Figure 8.42: Access to Electricity by Upazila....................................................................................... 8-54
Figure 8.43: Type of Sanitation Facility ............................................................................................... 8-55
Figure 8.44: Ownership of Sanitation Facility ...................................................................................... 8-56
Figure 8.45: Main Water Source.......................................................................................................... 8-57
Figure 8.46: Ownership of Tubewell .................................................................................................... 8-57
Figure 8.47: Availability of Water ......................................................................................................... 8-58
Figure 8.48: Educational Level of the Population in the 5 Kilometre Zone, 2005 ................................ 8-60
Figure 8.49: Gender Differences in Educational Level of the 5 Kilometre Zone, 2005 ........................ 8-61
Figure 8.50: Educational Facilities in the Study Area .......................................................................... 8-62
Figure 8.51: Health Facilities in the Study Area................................................................................... 8-64
Figure 8.52: Access to Landline Telephone ........................................................................................ 8-69
Figure 8.53: Most Common Illnesses or Symptoms Suffered by Household Members, 2005............. 8-70
Figure 8.54: Occurrence of Specific Physical Ailments/Conditions ..................................................... 8-72
Figure 8.55: Causes of Disabilities in the Study Area.......................................................................... 8-72
Figure 8.56: First Contact for Illnesses (Household Survey), 2005 ..................................................... 8-73

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Figure 8.57: First Contact for Illnesses (HIA Survey), 2005................................................................. 8-73
Figure 8.58: First Contact for Illnesses in Phulbari Paurashava, 2005 ................................................ 8-74
Figure 8.59: Source of Specific Health Services, 2005 (Health Promotion Limited, 2005) .................. 8-74
Figure 8.60: Expenditure on Health Care, 2005 (based on Health Promotion Limited, 2005) ............. 8-75
Figure 8.61: Archaeological Sites in the Study Area............................................................................ 8-78
Figure 8.62: Religious Sites in the Study Area .................................................................................... 8-79
Figure 8.63: Graveyards and Cremation Sites in the Study Area ........................................................ 8-80
LIST OF TABLES

Table 8.1: Key Indicators of the Households in 5 Kilometre Zone ......................................................... 8-2
Table 8.2: Key Socio-economic Indicators for Bangladesh ................................................................... 8-5
Table 8.3: Study Area Upazilas - Basic Facts ....................................................................................... 8-7
Table 8.4: Unions and Mouzas in the Study Area ................................................................................. 8-7
Table 8.5: Total Households and Population in the Study Area Upazilas............................................ 8-10
Table 8.6: Estimated Households in the Study Area Unions and Phulbari Paurashava ...................... 8-10
Table 8.7: Historical Population Densities of the Study Area Upazilas................................................ 8-11
Table 8.8: Religions, 1991 Population Census.................................................................................... 8-16
Table 8.9: Building Material of Roof of Main House............................................................................. 8-20
Table 8.10: Land Use within the 5 Kilometre Zone.............................................................................. 8-21
Table 8.11: Land Holdings by Type of Tenancy for the Study Area Upazilas, 1996............................ 8-22
Table 8.12: Land Ownership in the 5 Kilometre Zone.......................................................................... 8-22
Table 8.13: Type of Landholding by Union, 1996 ................................................................................ 8-24
Table 8.14: Cultivable Land Holdings in the 5 Kilometre Radius, 2005 ............................................... 8-25
Table 8.15: Occupational Status, Population 10 Years and Older, 1991............................................. 8-25
Table 8.16: Key Agricultural Indicators in the Study Area Upazilas, 2002........................................... 8-28
Table 8.17: Livestock in the Study Area Upazilas, 1996...................................................................... 8-31
Table 8.18: Livestock Owned by Households in the 5 Kilometre Zone, 2005...................................... 8-32
Table 8.19: Agricultural Labour............................................................................................................ 8-33
Table 8.20: Upazila Fishing Indicators, 2002....................................................................................... 8-34
Table 8.21: Industries in the Study Area Upazilas............................................................................... 8-36
Table 8.22: Professionals and Trades in the Study Area Upazilas...................................................... 8-36
Table 8.23: Professionals and Trades in the Study Area Upazilas...................................................... 8-36
Table 8.24: Small and Medium Sized Enterprises in Phulbari Township............................................. 8-37
Table 8.25: Main Sources of Household Income, 1991....................................................................... 8-39
Table 8-26: Population Below Poverty Line (DCI Method), 2000 ........................................................ 8-46
Table 8-27: Incidence of Poverty (Headcount Ratio), 2000................................................................. 8-46
Table 8-28: Change in Incidence of Poverty, 1991/92 2000............................................................. 8-47
Table 8.29: Transport Infrastructure in the Project Study Area Upazilas, 2002................................... 8-48
Table 8.30: Average Annual Daily Traffic Flows & Passenger Car Unit Equivalents (October 2004).. 8-51
Table 8.31: Average Daily Traffic Statistics In and Around Phulbari Township ................................... 8-51
Table 8.32: Existing Power Supply Systems in Phulbari ..................................................................... 8-52
Table 8.33: Access to Electricity.......................................................................................................... 8-52
Table 8.34: Sanitation Facilities, 1991................................................................................................. 8-55
Table 8.35: Main Source of Drinking Water, 1991............................................................................... 8-56

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Table 8.36: Educational Facilities in the Study Area Upazilas............................................................. 8-59

Table 8.37: Educational Facilities in Unions Located in the 5 Kilometre Zone .................................... 8-59
Table 8.38: Literacy Rates in the Study Area Upazilas, 2002.............................................................. 8-60
Table 8.39: Health Services in the Study Area Upazilas, 2002 ........................................................... 8-61
Table 8.40: Physicians in Private Practices in the Study Area Upazilas, 2002.................................... 8-63
Table 8.41: Health Facilities in the Study Area.................................................................................... 8-63
Table 8.42: Government and Semi Government Offices in the Study Area......................................... 8-66
Table 8.43: NGOs in the Study Area, 2005 ......................................................................................... 8-67
Table 8.44: Markets and Their Shops in the 5 Kilometre Zone, 2005.................................................. 8-69
Table 8.45: Health Conditions Suffered by the Adult Population ........................................................ 8-71
Table 8.46: Common Illness Suffered by Children in the Study Area.................................................. 8-71
Table 8.47: Archaeological Site Classification..................................................................................... 8-76
Table 8.48: Sites of Archaeological and Religious Importance............................................................ 8-77
Table 8.49: Religious Sites Located in the 5 Kilometre Zone .............................................................. 8-77
Table 8.50: Graveyards and Cremation Sites in the 5 Kilometre Zone................................................ 8-77

CHAPTER 9: BIOPHYSICAL IMPACT ASSESSMENT

9

BIOPHYSICAL IMPACT ASSESSMENT ...................................................................................9-1

9.1 INTRODUCTION..............................................................................................................9-1
9.2 SOIL.................................................................................................................................9-1
9.3 LAND USE AND LAND CAPABILITY ..............................................................................9-8
9.4 AIR QUALITY.................................................................................................................9-14
9.5 NOISE, BLASTING AND VIBRATION ...........................................................................9-28
9.6 SURFACE WATER ........................................................................................................9-39
9.7 GROUNDWATER ..........................................................................................................9-54
9.8 VISUAL AMENITY .........................................................................................................9-68
9.9 BIODIVERSITY ..............................................................................................................9-78
9.10 WASTE MANAGEMENT................................................................................................9-85
9.11 GREENHOUSE GAS EMISSIONS AND ENERGY USE ...............................................9-91

Appendix 9.1: Greenhouse Gas Calculations .................................................................................9-99

LIST OF FIGURES
Figure 9.1: Conceptual Rehabilitation Plan ......................................................................................... 9-10
Figure 9.2: Modelled Air and Noise Quality Receptor Locations ......................................................... 9-18
Figure 9.3A: Predicated Maximum PM10 Concentration Contour (Year 5)........................................... 9-20
Figure 9.3B: 99th Percentile PM2.5 Concentration Contour for Year 5.................................................. 9-23
Figure 9.3C: Increase in Dust Deposition Contour for Year 5.............................................................. 9-24
Figure 9.4: Predicted Noise Contours Year 02 (Night Inversion)......................................................... 9-33
Figure 9.5: Predicted Noise Contour Year 05 (Night Inversion)........................................................... 9-34
Figure 9.6: 1:100 Year Pre Development Flood Depths...................................................................... 9-41
Figure 9.7: 1:100 Year Post Development (without Land Settlement) Flood Depths........................... 9-42
Figure 9.8: Predicted Land Settlement Impact (with Injection) ............................................................ 9-45

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Figure 9.9: 1 in 100 Year Post Development Flood Depth (with Sediment Consolidation).................. 9-46
Figure 9.10: Predicted Groundwater Contours for Year 29 on 31 March............................................. 9-56
Figure 9.11: Predicted Groundwater Contours with Injection for Year 29 on 31 March....................... 9-58
Figure 9.12: Locality Plan - Areas Impacted by Mine Dewatering and Aquifer Injection...................... 9-59
Figure 9.13: Layout - Irrigation Water Supply Distribution from the Dewatering System..................... 9-64
Figure 9.14: Typical Layout Plan for Irrigation Water Supply from New DTW ..................................... 9-66
Figure 9.15: View Points...................................................................................................................... 9-72
Figure 9.16: Priority Areas Identified for Biodiversity Conservation..................................................... 9-79
Figure 9.17: Conceptual Design of Treatment of AMD and Other High Risk Materials (GHD 2005a). 9-87

LIST OF TABLES
Table 9.1: Severity/Consequence Ranking Criteria - Soils .................................................................... 9-7
Table 9.2: Significance of Residual Impacts Soils: Ex-Pit Overburden Dump .................................... 9-8
Table 9.3: Significance of Residual Impacts Soils: In-Pit Overburden Dump ..................................... 9-8
Table 9.4: Significance of Residual Impacts Soils: Adjacent Agricultural Area................................... 9-8
Table 9.5: Areal Extent of the Mine Footprint and Proposed Rehabilitation. ......................................... 9-9
Table 9.6: Land Use Changes During Mining........................................................................................ 9-9
Table 9.7: Areal Extent of Final Landform Type .................................................................................. 9-11
Table 9.8: Areal Extent of Final Land Use Type .................................................................................. 9-11
Table 9.9: Severity/Consequence Ranking Criteria Land Use.......................................................... 9-13
Table 9.10: Significance of Residual Impacts Land Use................................................................... 9-13
Table 9.11: Severity/Consequence Ranking Criteria Land Capability .............................................. 9-13
Table 9.12: Significance of Residual Impacts Land Capability ......................................................... 9-14
Table 9.13: Predicted PM10 Concentrations from Project Emissions (g/m3)...................................... 9-19
Table 9.14: Predicted PM2.5 (24 hour) Concentrations at the Discrete Receptors..................................... 9-21
Table 9.15: Predicted Increase in Dust Deposition Rates at the Discrete Receptors .......................... 9-22
Table 9.16: Severity/Consequence Ranking Criteria Air Quality ...................................................... 9-27
Table 9.17: Significance of Residual Impacts Air Quality ................................................................. 9-28
Table 9.18: Predicted Noise Impacts from the Project (dB(A)) ............................................................ 9-32
Table 9.19: Predicted Ground Vibration and Overpressure Levels at Various Distances.................... 9-35
Table 9.20: 2005 and Projected AADT for the Main Transport Routes Out of Phulbari....................... 9-36
Table 9.21: Severity/Consequence Ranking Criteria Noise.............................................................. 9-38
Table 9.22 Significance of Residual Impacts Noise.......................................................................... 9-39
Table 9.23: Flood Elevation due to Mine and Town Bunding (metres above sea level) ...................... 9-40
Table 9.24: Effect of Land Settlement on Water Elevation .................................................................. 9-44
Table 9.25: Severity/Consequence Ranking Criteria Surface Water ................................................. 9-53
Table 9.26: Significance of Residual Impacts Surface Water ........................................................... 9-54
Table 9.27: Severity/Consequence Ranking Criteria Groundwater .................................................. 9-67
Table 9.28: Significance of Residual Impacts Groundwater ............................................................. 9-68
Table 9.29: Visual Impact Assessment................................................................................................ 9-77
Table 9.30: Severity/Consequence Ranking Criteria Visual ............................................................. 9-78
Table 9.31: Significance of Residual Impacts Visual ......................................................................... 9-78
Table 9.32: Habitat Areas.................................................................................................................... 9-80
Table 9.33: Severity/Consequence Ranking Criteria Biodiversity..................................................... 9-84
Table 9.34: Significance of Residual Impacts Terrestrial and Aquatic.............................................. 9-85
Table 9.35: Summary of AMD Risk (GHD 2005o) ............................................................................... 9-86
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Table 9.36: Severity/Consequence Ranking Criteria Waste............................................................. 9-90

Table 9.37: Significance of Residual Impacts Waste........................................................................ 9-91
Table 9.38: Mine Power Supply Scenario............................................................................................ 9-94
Table 9.39: Predicted CO2 Equivalent Emissions from the Project...................................................... 9-95
Table 9.40: Severity/Consequence Ranking Criteria Greenhouse Gas Emissions .......................... 9-97
Table 9.41: Significance of Residual Impacts Greenhouse Gas Emissions ..................................... 9-97
LIST OF PLATES
Plate 9.1: Views from the North........................................................................................................... 9-73
Plate 9.2: Views from the East............................................................................................................. 9-74
Plate 9.3: Views from the South .......................................................................................................... 9-75
Plate 9.4: Views from the West............................................................................................................ 9-76

CHAPTER 10: SOCIO-ECONOMIC IMPACT ASSESSMENT

10

SOCIO-ECONOMIC IMPACT ASSESSMENT .........................................................................10-1

10.1 INTRODUCTION............................................................................................................10-1
10.2 LAND ACQUISITION .....................................................................................................10-2
10.3 POPULATION DISPLACEMENT .................................................................................10-24
10.4 LIVELIHOODS AND INCOME .....................................................................................10-34
10.5 SOCIAL, COMMUNITY AND CULTURAL PRACTICES ..............................................10-47
10.6 IMPACTS ON INFRASTRUCTURE AND SERVICES .................................................10-50
10.7 HEALTH AND SAFETY IMPACTS...............................................................................10-67
10.8 IMPACTS ON CULTURAL HERITAGE........................................................................10-77
10.9 VULNERABLE GROUPS.............................................................................................10-83
10.10 HOST COMMUNITY IMPACTS ...................................................................................10-96
10.11 SUSTAINABILITY AND DEVELOPMENT ISSUES....................................................10-104

APPENDICES .................................................................................................................................10-106

LIST OF FIGURES
Figure 10.1: Land Occupation Stages (need to be update).................................................................10-4
Figure 10.2: Proposed Road and Rail Realignments...........................................................................10-8
Figure 10.3: Land Acquisition Process ..............................................................................................10-17
Figure 10.4: Institutional Arrangements for Resettlement Implementation ........................................10-21
Figure 10.5: Resettlement Phases ....................................................................................................10-26
Figure 10.6: Agricultural Based Sources of Income...........................................................................10-35
Figure 10.7: Skill Level of Permanent Employees in Mine Footprint .................................................10-40
Figure 10.8: Baseline Survey Sites and Proposed Network Impact Sites (SMEC 2005)...................10-54
Figure 10.9: Impact on Travel Distances ...........................................................................................10-56
Figure 10.10: Health Facilities in the Mine Footprint..........................................................................10-59
Figure 10.11: Educational Facilities in the Mine Footprint .................................................................10-62
Figure 10.12: Archaeological Sites in the Mine Footprint ..................................................................10-79
Figure 10.13: Religious Structures in the Mine Footprint...................................................................10-80
Figure 10.14: Graveyards and Cremation Sites in the Mine Footprint...............................................10-83

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Figure 10.15: Monthly Income for Female-headed Households vs Male-headed Households..........10-85

Figure 10.16: Income Sources for Female-Headed Households.......................................................10-85
Figure 10.17: Affected Indigenous Villages .......................................................................................10-89
Figure 10.18: Agreement to Statements about the Coal Project .......................................................10-90
Figure 10.19: Purpose of Government Land Use ..............................................................................10-92
Figure 10.20: Relocation Villages ......................................................................................................10-97

LIST OF TABLES
Table 10.1: Severity/Consequence Ranking Criteria...........................................................................10-1
Table 10.2: Cultural/Religious Heritage Severity/Consequence Ranking Criteria ...............................10-2
Table 10.3: Summary Mine Development Schedule............................................................................10-3
Table 10.4: Land Occupation by Mining Stage....................................................................................10-3
Table 10.5: Resettlement Implementation Schedule ...........................................................................10-6
Table 10.6: Estimate of Affected Land Use Categories.......................................................................10-9
Table 10.7: Land Acquisition Requirements by Upazila and Union ...................................................10-10
Table 10.8: Proportion of Affected Administrative Unit in Mine Footprint ..........................................10-10
Table 10.9: Ownership of Tree Types ...............................................................................................10-12
Table 10.10: Type of Fruit Trees Owned ...........................................................................................10-12
Table 10.11: Type of Timber Trees Owned .......................................................................................10-13
Table 10.12: Estimate of Trees Located in the Mine Footprint ..........................................................10-13
Table 10.13: Fish Species Cultivated ................................................................................................10-14
Table 10.14: Homestead Structures in the Mine Footprint ................................................................10-14
Table 10.15: Predicted Magnitude of Subsidence with Aquifer Injection ...........................................10-15
Table 10.16: Summary of Impact Assessment and Mitigation Measures: Land Acquisition..............10-22
Table 10.17: Mine Footprint Resettlement Estimates........................................................................10-24
Table 10.18: Estimated Households to be Resettled by Administrative Unit and Phase...................10-25
Table 10.19: Elderly Household Heads .............................................................................................10-25
Table 10.20: Disabled Household Heads ..........................................................................................10-27
Table 10.21: Villages Potentially Affected by Mining Disturbance.....................................................10-27
Table 10.22: Villages Potentially Affected by Transport Realignments .............................................10-27
Table 10.23: Villages Located in the Western Extension of Phulbari Township ................................10-28
Table 10.24: Resettlement Preferences of Households ....................................................................10-30
Table 10.25: Summary of Impact Assessment and Mitigation Measures: Population Displacement.10-33
Table 10.26: Estimates of Households Below Adjusted Poverty Line, 2005......................................10-34
Table 10.27: Agricultural Reliant Businesses Enumerated in the Resettlement Survey....................10-37
Table 10.28: Local Procurement Opportunities .................................................................................10-41
Table 10.29: Livelihoods Re-establishment Preferences...................................................................10-42
Table 10.30: Training Preferences ....................................................................................................10-44
Table 10.31: Summary Matrix of Impacts and Mitigation Measures for Livelihoods..........................10-46
Table 10.32: Summary Matrix of Impacts and Mitigation Measures for Social and Community Practices
.....................................................................................................................................10-50
Table 10.33: Proportion of Union Affected in Mine Footprint.............................................................10-52
Table 10.34: Impact on Travel Distance (km)....................................................................................10-55
Table 10.35: Impact on Travel Time (min).........................................................................................10-55
Table 10.36: Health Facilities and Operators in the Mine Footprint...................................................10-58
Table 10.37: Health Facilities and Operators in Phulbari Western Extension....................................10-60

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Table 10.38: Educational Facilities in the Mine Footprint ..................................................................10-61

Table 10.39: Educational Facilities in Areas of Possible Mine Disturbance.......................................10-61
Table 10.40: Educational Facilities in Phulbari Western Extension ...................................................10-61
Table 10.41: Markets in the Mine Footprint .......................................................................................10-63
Table 10.42: Summary Matrix of Impacts and Mitigation Measures for Infrastructure and Services .10-68
Table 10.43: Summary Matrix of Impacts and Mitigation Measures for Health and Safety ...............10-76
Table 10.44: Religious Structures in the Mine Footprint....................................................................10-78
Table 10.45: Religious Sites in Phulbari Western Extension.............................................................10-78
Table 10.46: Graveyards in the Mine Footprint .................................................................................10-81
Table 10.47: Summary Matrix of Impacts and Mitigation Measures for Cultural Heritage .................10-82
Table 10.48: Demographic Characteristics of Female Household Heads .........................................10-84
Table 10.49: Summary Matrix of Impacts and Mitigation Measures for Vulnerable Groups ..............10-95
Table 10.50: Project Resettlement Sites ...........................................................................................10-96
Table 10.51: Priority One Resettlement Sites....................................................................................10-96
Table 10.52: Priority Two Resettlement Sites....................................................................................10-98
Table 10.53: Priority Three Resettlement Sites .................................................................................10-98
Table 10.54: Host Area Landowners, Priority One Resettlement Sites .............................................10-98
Table 10.55: Gender Breakdown of Host Area Landowners .............................................................10-99
Table 10.56: Primary Occupation of Host Area Population ...............................................................10-99
Table 10.57: Land Transactions in the Last Twenty-Four Months...................................................10-100
Table 10.58: Dominant Income Sources .........................................................................................10-101
Table 10.59: Sharecropping and Leasing Arrangements ................................................................10-101
Table 10.60: Support for the Establishment of the Resettlement Sites ...........................................10-101
Table 10.61: Reasons for not Supporting Establishment of Resettlement Sites..............................10-102
Table 10.62: Summary Matrix of Impacts and Mitigation Measures for Host Communities.............10-104
LIST OF APPENDICES
Appendix 10.1.1: Assignment of Truck and Workforce Trips to New Road Network .......................10-107
Appendix 10.1.2: Traffic Assignment Assumptions for Future Road Network .................................10-108
Appendix 10.1.3: Estimated Background Average Daily Traffic When Reassigned (PCUs) ...........10-109
Appendix 10.1.4: Daily Truck Trips Due to Barapukuria and Madhyapara Minegate Sales (PCUs)10-110
Appendix 10.1.5: Daily Work Trips Due to Barapukuria & Madhyapara Mine (PCUs)....................10-111
Appendix 10.2: Estimated Total Average Daily Traffic Without Project Development (PCUs) ........10-112
Appendix 10.3: Estimated Average Daily Traffic With Project Development (PCUs) ......................10-113
Appendix 10.4: Estimated Peak Hour Traffic With Project Development (PCUs)............................10-114
Appendix 10.5: RHD Standard Road Design Requirements ...........................................................10-115

CHAPTER 11: ANCILLARY DEVELOPMENT

11

ANCILLARY DEVELOPMENT.................................................................................................11-1
11.1 INTRODUCTION............................................................................................................11-1
11.2 PHULBARI EXTENDED TOWNSHIP AND VILLAGE INFRASTRUCTURE ..................11-1
11.3 COAL FIRED POWER STATION...................................................................................11-6
11.4 TRANSPORTATION AND PORT INFRASTRUCTURE.................................................11-8

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LIST OF FIGURES
Figure 11.1: Proposed Extended Town / Village Locations ................................................................. 11-2
Figure 11.2: Extended Phulbari Township Land Use Plan .................................................................. 11-3
Figure 11.3: Generic Village Plan ........................................................................................................ 11-4
Figure 11.4: Site of Proposed Power Station....................................................................................... 11-7
Figure 11.5: Proposed Coal Transport Route...................................................................................... 11-9

CHAPTER 12: CUMULATIVE IMPACTS

12

CUMULATIVE IMPACTS .........................................................................................................12-1

12.1
RELEVANT PROJECTS.............................................................................................12-1
WATER RESOURCES...............................................................................................12-3
12.2
12.3
AIR QUALITY .............................................................................................................12-6
12.4
NOISE ........................................................................................................................12-7
LAND USE AND LAND CAPABILITY.........................................................................12-7
12.5
12.6
ECOLOGICAL ISSUES AND BIODIVERSITY............................................................12-8
GREENHOUSE GAS EMISSIONS.............................................................................12-8
12.7
12.8
LAND ACQUISITION AND RESETTLEMENT............................................................12-9
12.9
LIVELIHOODS AND EMPLOYMENT .........................................................................12-9
12.10 POPULATION CHANGES..........................................................................................12-9
12.11 INFRASTRUCTURE AND SERVICES .....................................................................12-10
12.12 TRAFFIC ..................................................................................................................12-10
12.13 CONCLUSIONS .......................................................................................................12-11

LIST OF FIGURES
Figure 12.1: Major Industries in the Vicinity of the Project................................................................... 12-2

LIST OF TABLES
Table 12.1: Potential Significant Cumulative Environmental and Social Impacts ................................ 12-3
Table 12.2: Dewatering Rates ............................................................................................................. 12-3

CHAPTER 13: MANAGEMENT PLANS

13

MANAGEMENT PLANS................................................................................................... 13-1

13.1 INTRODUCTION.................................................................................................... 13-1
13.2 ENVIRONMENTAL AND SOCIAL ACTION PLAN (ESAP).................................... 13-1
13.3 RESETTLEMENT PLAN ........................................................................................ 13-3
13.4 INDIGENOUS PEOPLES DEVELOPMENT PLAN................................................ 13-3
13.5 PUBLIC CONSULTATION AND DISCLOSURE PLAN .......................................... 13-4

LIST OF TABLES
Table 13.1: ESAP Sub-Plans........................................................................................................13-2

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CHAPTER 14: JUSTIFICATION OF PHULBARI COAL PROJECT

14

JUSTIFICATION OF PHULBARI COAL PROJECT ................................................................14-1

14.1 INTRODUCTION............................................................................................................14-1
14.2 WILL MEET IMPORTANT NATIONAL NEEDS..............................................................14-1
14.3 WILL HELP SATISFY DEMAND FOR COAL.................................................................14-3
14.4 WILL DECREASE DEPENDENCE ON GAS .................................................................14-4
14.5 WILL HAVE ACCEPTABLE ENVIRONMENTAL AND SOCIAL CONSIDERATIONS &
SUSTAINABLE DEVELOPMENT ..................................................................................14-6
14.6 SUMMARY.....................................................................................................................14-7

LIST OF FIGURES
Figure 14.1: Installed Electricity Generation Capacity (by Fuel Type) 2003 ........................................ 14-4
Figure 14.2: Location of Gas Fields (red flames) in Bangladesh in Relation to Phulbari Coal Project. 14-5
LIST OF TABLES
Table 14.1: Gas Consumption Growth, Bangladesh............................................................................ 14-4

CHAPTER 15: RISKS AND OPPORTUNITIES

15

RISKS AND OPPORTUNITIES................................................................................................15-1

15.1 INTRODUCTION............................................................................................................15-1
15.2 GENERAL RISKS, UNCERTAINTIES AND OPPORTUNITIES.....................................15-1
15.3 PROJECT RELATED RESIDUAL RISKS ......................................................................15-5
15.4 CONCLUSION ...............................................................................................................15-8

LIST OF TABLES
Table 15.1: Project Institutional and Political Issues............................................................................ 15-1
Table 15.2: Project Technical Issues................................................................................................... 15-3
Table 15.3: Project Environmental and Social Issues.......................................................................... 15-4
Table 15.4: Significance Assessment Matrix ....................................................................................... 15-5
Table 15.5: Residual Risks - Environmental........................................................................................ 15-6
Table 15.6: Residual Risks Social .................................................................................................... 15-8

CHAPTER 16: CONCLUSIONS AND RECOMMENDATIONS

16

CONCLUSIONS AND RECOMMENDATIONS ........................................................................16-1

16.1 CONCLUSIONS.............................................................................................................16-1
16.2 RECOMMENDATIONS..................................................................................................16-2

LIST OF TABLES
Table 16.1: Summary of Environmental and Social Impact Management and Mitigation Commitments16-3

CHAPTER 17: REFERENCES

CHAPTER 18: GLOSSARY
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April 2006
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