This document outlines the environmental and social obligations of investment companies in Laos, including complying with relevant legislation, conducting environmental and social impact assessments, and ensuring public involvement. It discusses the process for screening projects, conducting Initial Environmental Examinations and Environmental and Social Impact Assessments, and obtaining Environmental Compliance Certificates from the Ministry of Natural Resources and Environment. It emphasizes the importance of avoiding, minimizing and mitigating impacts, as well as obtaining free prior and informed consent from affected communities and establishing grievance mechanisms.

1. Environmental and Social Obligations of
Investment Companies
Mr. Orlahanh BOUNGNAPHALOM
Department of Environmental and Social Impact
Assessment (DESIA)
Ministry of Natural Resources and Environment

2. Background
• Law on Environmental
Protection (Amended),
No.29/NA 2012,
specifically Article 21 and
22
• Issuance of Ministerial
Instruction 8029 on IEE
and 8030 on ESIA
• Issuance of Ministerial
Instruction 8056 on List of
Projects

3. Duties and Responsibilities
of the Company
Compliance with all relevant legislation for the
protection of the natural environment and affected
communities, including:
• Avoidance of environmental and social impacts as
a first priority
• Minimization of unavoidable impacts
• Mitigation, compensation and restoration of all
unavoidable impacts
• Provision of all necessary funding for impact
assessment, monitoring, compliance and
restoration

4. Screening of Investment Projects
Direct Preparation of
Environmental and
Social Management and
Monitoring Plan
Insignificant impacts
anticipated
Small-scale projects
Initial Environmental
Examination (IEE)
Examples:
Hydropower 1-15 MW or
reservoir <2 million m3
Commercial Tree
Plantations 20-200 ha
Commercial agricultural
plantations 20-400 ha
Environmental and
Social Impact
Assessment (ESIA)
Examples:
Hydropower >15 MW
Commercial tree
plantations >200 ha
Commercial agricultural
plantations >400 ha
All mining operations
using hazardous chemicals
The other factors that shall be taken into consideration during screening are
(i) Project Location – in the Socially and Environmentally Valuable Site? and
(ii) Impact on Compensation and Resettlement?

5. Initial Environmental Examination (IEE) Process
1. Company prepares IEE
Report and ESMMP, in
consultation with affected
persons and relevant
agencies
2. Administrative review
of IEE report and ESMMP
by Provincial Department
of Natural Resources and
Environment (DONRE)
3. Technical review of IEE
and ESMMP b y DONRE,
in consultation with
affected persons and
relevant agencies
Revisions requested by
DONRE
4. DONRE issues ECC to
project company
Sends to
DONRE
Approved
Approved
10 working
days
40 working
days

6. Environmental and Social Impact Assessment (ESIA) Process
1. Company prepares
Terms of Reference and
Scope of Study
2. Ministry of Natural
Resources and
Environment (MONRE)
Reviews
3. Company prepares
ESIA and ESMMP in
consultation with Project
Affected Persons and
other stakeholders.
4. MONRE conducts
administrative review
5. Technical review of IEE and ESMMP by
MONRE, in consultation with affected persons
and other stakeholders, including national and
provincial meetings and site visits
6. MONRE issues ECC to
company
Sends to
MONRE
Approved
Approved
Sends to
MONRE
Approved
Revisions requested
Revisions
Revisions
Complicated
projects required to
prepare separate
ESMMP for the
Construction
Phases.
MONRE appoints
a Technical Review
Committee (120
days).
15
working
10 working days days
95 working
days

7. Public Involvement in the
ESIA Process
• Full public disclosure of all likely or potential impacts
• Ensuring community consultation in impact
assessment, monitoring, compliance and project
closure
• Free prior and informed consent of all project
affected persons
• Ensuring rights of communities
• Ensuring grievance mechanisms are honored

8. Steps Forward
• Revision of the Resettlement Decree (expected
2015)
• Public Involvement Guidelines (expected 2015)
• ESIA Law under consideration

9. Thank you.