Environmental Impact Assessment Executive Summary

ENVIRONMENTAL IMPACT ASSESSMENT (EIA) REPORT For Hmawbi Formulation Plant Project 

Report prepared by:
Kaung Kyaw Say Engineering Co.,
Ltd. No.30, Pinlon Yeit Mon, Thinganjyun Township, Yangon, Myanmar.
Phone: +95-1-570284, +95-9-5183507
Email: mgy@myanmar.com.mm, kaungkyawsaymdoffice@gmail.com

1. Executive Summary

1.1 Introduction
Myanmar is the most leading country in terms of agricultural production. In the aspect of the socio-economic development, Myanmar has made efforts to transform its agro-based economy into an industrialized one. To pursue the national economic objectives, development in manufacturing and processing sector is an important factor. The industrial sector of Myanmar largely depends on small and medium scale industries. However, development of industrial sector would have a substantial impact on the environment, natural resources and local community in many forms. Thus, the government of Union of Myanmar takes all necessary measures to control and mitigate the environmental and social impacts due to industrialization.

Nowadays Myanmar economy is opening up, the agricultural sector is expected to grow significantly and thus the demand for food grains vegetables and fruits is expected to increase significantly in future. Myanma Awba Group Co., Ltd, who is the leading manufacturers of Crop Protection Products (CPP or agrochemicals, such as pesticides, fungicides and herbicides), fertilizers and the seeds in Myanmar, has constantly made efforts to offer customized products and services to help farmers produce the quality crop to meet the food industry demand.

With an aim to enhance its manufacturing capabilities through expansion of current facilities to fulfill the future demand and to increase productivity, Myanma Awba Group proposed to develop the Formulation Plant Project at Ward No 7/2, Wah Net Chaung Village, Hmawbi Township, East Tharyargone, Yangon Division, covering approximate area of 126.13 Acres. The Proposed Project will be implementing to produce pesticides in accordance with Myanmar Investment Law and National Environmental Conservation Law (2012). 

Figure 1.1 depicts the key plan and location plan for new formulation plant. 

The land size is approximately 126.13 acres but only some portion of it will be utilized for the construction of a new plant. The land is generally flat with small and gradual contours in the west while the eastern side is hilly and has rubber plantations on it. There is an existing pesticide formulation plant somewhere near the middle (slightly closer to the eastern side). The new factory is to be constructed on an empty land which is at the west of the existing pesticide plant.


The project is expected to be built in three phases and the land utilization for each phase is as stated below. 



The plant is expected to have a production capacity of 16 million liters/kilograms of products in Phase 1 and will increase up to 30 million liters/kilograms of products in Phase 3. The products that are going to be produced are insecticides, herbicides, fungicides and foliar, and most of them have high toxicity while certain solvents used in the production process are highly flammable. Approximately 77% of the goods are classified as liquid while the remaining is in solid/powder from.

In the absence of Environmental Impact Assessment (EIA) system, the project activities could lead to severe impacts on the environment and human health. Thus, in the view of the above- mention concern on the environment, Kaung Kyaw Say Engineering Co., Ltd. made the Initial Environmental Examination (IEE) in 2015. The results of IEE will provide basic guidelines for Environmental Impact Assessment (EIA) to ensure that the proposed project is systematically planned and managed without producing adverse effect on natural and social environment.

The Environmental and Social Impact Assessment (EIA/SIA) Report is prepared and submitted to National Environmental Board and concerned authorities for approval of the proposed Formulation Plant Project to be implemented by Myanma Awba Group Co., Ltd at Hmawbi Township, Wah Net Chaung Village as per lease agreement between Ministry of Agriculture (hereinafter referred to as Landlord) and Myanma Awba Group Co., Ltd. (hereinafter referred to as Tenant) for the (126.13) Acres of land, Ward No. 7/2, Hmawbi Township, Wah Net Chanung Village, Northern District, Yangon Division, Myanmar. This project is aimed to develop the national agricultural sector and to help farmers by supplying the high quality products at low cost so as to increase crop yields and promote sustainable agriculture.

1.2 Need of EIA

Environmental Impact is a change that activities associated with a project may cause in the environment including the impact of any change and social economic condition, on physical or cultural heritage on the current use of lands and resources for traditional purposes by Indigenous Peoples or any structure site or thing that is of historical, archaeological, paleontological, or architectural significance. 

Environmental Impact Assessment is the prediction of consequences to the environment of a proposed project development measures. It could be both positive or negative impacts and one of the most important tools for achieving sustainable development.

The nature of the proposed project is that includes blending/mixing and formulation of pesticides which would produce less waste by production. Pesticides are mainly used for plant protection and improving crop yields. This project is considered the project with minimal potential for significant adverse environmental impact and needed EIA.

The following table shows the need of EIA for the proposed plant project as required by Myanmar Environmental Law which is enacted in 2012. 


1.3 Scope and Objectives of EIA


It is summarized as follows:

lensConduct Survey and data collection of the study area
lensCollect & review background data and information on the project and the existing environment
lensIdentify sensitive receivers within the vicinity of the study area
lensAssess the potential environmental impacts likely to arise from the service apartment, office, warehouse and factory
lensIdentify and recommend the practical mitigation measures to reduce the potential impacts identified in the assessment
lensUndertake an analysis of the potential ground-borne noise impacts on the surrounding area and recommend appropriate mitigation measures where necessary
lensProvide technical advices and support to any Public Consultation Program associated with the project There are number of technical requirement for assessing specific environmental impacts such as noise, air and water quality impact and land contamination impact.
There are number of technical requirement for assessing specific environmental impacts such as noise, air and water quality impact and land contamination impact.

Objectives of EIA

The objectives of the EIA include;

lensTo ensure the environmental impacts are explicitly addressed and incorporated into the decision of the development process
lensTo anticipate and avoid minimized or offset the adverse significant biophysical, social and other relevant effects of the development proposals
lensTo protect the productivity and capacity of natural systems as well as the ecological processes which maintain their functions
lensTo promote sustainability and optimizes resources The following table 1 shows the project owner and proponent, relevant organization of project implementation and the implementation organization of EIA. 
Table 1 Project Owner and Proponent, Project Implementation and Implementation Organization EIA


Table 2 Overall Framework of Environmental Impact Assessment


Since the new formulation plant is to be constructed on an empty land which is close to the existing pesticide plant, and the land is designated for “industrial purposes”, the potential for significant adverse effect on the environment is less anticipated.

1.4 EIA Approach Summary

The EIA Implementation Team made “Baseline Survey” on Project Area since July 2015, and conducted initial environmental assessment with focus any possible negative impacts on the environment at such an early stage in the planning process that these impacts may either be mitigated or avoided. As terms of reference (TOR) for investigation of Environmental Impact Assessment (EIA) the survey items and method of each negative item which was identified as A, B or C by scoping described in matrix.

The baseline of air quality, water quality, noise, soil flora/fauna and cultural heritage were confirmed by laboratory analysis and filed survey.

The environmental and social impact assessment was conducted according to the scoping matrix below and examined in the next chapter.

lensA- Significant Negative Impact
lensA+ Significant Positive Impact
lensB- Some Negative Impact
lensB+ Some Positive Impact
lensC Insignificant impact, impact are not clear, need more investigation
lensD No impact or impacts are negligible, no further study
Results of Scoping for Environmental and Social impact assessment are summarized in Table below.


The survey team visited the project area and met the township officials on 6 October 2015 to identify the key stakeholders that are affected, and/or able to influence the Project and its activities and encourage the stakeholder engagement to participate in the public consultation process. This phase of engagement focuses on disclosing and consulting on the draft results of the ESIA process.

The EIA Implementation team and the Project Owner, Myanma Awba Group held the stakeholder meeting on 15 October 2015 with government official, township labour representatives, NGOs, political association, local and neighboring communities on 15 October 2015 at Hmawbi Township, Wah Net Chaung Village Head of Administration Office Meeting Hall. At stakeholder meeting, the company provided information details about the project and collected feedback from the attendees on the draft impact assessment and associated management mitigation.

In general, the project would create an impact to the environment in the following phases,
1. The temporary of short term impact during construction phase
2. Long term effect by daily operation
3. However the project is the housing project, it is also necessary to consider the impact during construction period such as noise and temporary waste.

The benefit assessments cover a broad range of parameters organized around three central themes: pollution, natural environment and social environment. The positive impact of this project is assumed by the development of social infrastructures in this area and local economy and employment opportunity for neighboring villages.

Alternatives

There are no alternatives regarding to the minimal impact due to the project implementation. It is observed as;

lensThe best geographic location
lensThe best strategic place for the project
lensThe recodification and upgrading of existing factory

1.5 Conclusion and Suggestion

This study assesses the impact of a World Bank assisted agricultural development project on the environment and rural population in Myanmar. Since the Pesticide Formulation Plant is to be constructed on an empty land which is at the west of the existing pesticide plant, this project is considered the project with minimal potential for significant adverse effect on environment.

Besides, the proposed project will contribute a substantial value to the national economy through productivity gains in the agriculture sector, lifting incomes and reducing poverty. It also creates opportunities in other sectors, through freeing up of labour and generating growth in communities.

The benefits of the proposed project are summarized as follows;

lensTo improve cost effectiveness in production and increase productivity by use of high technology manufacturing facilities;
lensTo enhance yield with sensible cost and maximizing income of farmers by providing the high quality crop protection product (CPP) at competitive price;
lensTo offer more employment opportunity and reduce poverty problem
lensTo be a premier formulation plant in Myanmar, applying German technology, targeted towards overcoming specific barriers to production;
lensTo reduce export earnings by import substitution with domestic product and to increase GDP by value-added export;

Hmawbi Formulation Plant Project is a special milestone for development in Myanmar Agricultural Sector. The Company’s approach towards preventing pollution in any form is based on industry best practices, recommendations from WBG’s EHS Guidelines and national environmental guidelines and statutory requirements. To minimize the impact by this project, the project infrastructure design includes the wastewater treatment plant, air pollution treatment facility and 3Rs programs for waste treatment facilities which are important opportunities for a transition to a green economy.

In general, the positive impact of this project is assumed by development of social infrastructures such as transportation, communication, network, schools and hospitals will be improved. Besides, it is expected that local economy and employment will be boosted by the project. The analysis also suggests that that rural population in direct contact with the project were more likely to feel positive about its various benefits than the uninvolved.

The results of the study suggest that this project would create more social well-being, including better health, and more jobs and economic progress, while at the same time reducing environmental risks, such as the effects of air pollution, inappropriate waste management, greater water scarcity, the loss of eco-services, and climate change. In addition, the project helps the agriculture sector to reduce export earnings by import substitution as well as increase GDP and generate more tax revenue for the government.

1.6 Applied Environmental Law, Regulations and Standards

The environmental conservation law is enacted in 2012 by implementing of national policy by setting up of principles and guidelines for sustainable development and conservation of clean environment, natural and cultural heritage for present and future generation. The national environmental standard law is enacted in July 2014. The regulation for environmental conservation is enacted in July 2014. 

Compliance Laws and Regulations

There are 32 ministries under the office of the President of Myanmar. The leading ministries in charrge of environment and social consideration are the Ministry of Environmental Conservation and Forestry (MOECAF).

The following are the legislation pertinent to natural and social environment area in Myanmar.

lensForest Law (1992)
lensProtection of Wildlife and Wild Plant and Conservation of Natural Areas Law 1994
lensPublic Health Law (1972)
lensFactory Act (1951)
lensTerritorial Sea and Maritime Zone Law (1977)
lensNational Environment Policy (1994)
lensDraft Environment Law (2000)
lensMines Law (1994)
lensFreshwater Fisheries Law (1991)
lensMarine Fisheries Law (1990)
lensLaw on Aquaculture (1989)
lensIrrigation Laws and Regulations (1982)
lensThe Conservation of Water Resources and River Law (October 2006)
lensMyanmar Special Economic Zone Law (2012)
lensDraft Environmental Conservation Rules (Under legislation, February 2013) Environmental Regulation (2014)
lensEIA Procedure (Draft)
lensEnvironmental Guideline (Draft)

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