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What Is Environmental Impact Assessment?

A seven-stage process running from an inception report to the Minister’s approval in principle. It is mandatory for level 3 activities, and it must be finished before a permit application can even be accepted.

The environment law series, no. 9 · Environment permits and impact assessment · 6 min read

Division 3 of Part V of the Environment Act 2000 is the country’s environmental impact assessment regime. It applies to the largest and most sensitive projects.

Sections 47 to 49 — registering preparatory work

Section 47 — “preparatory work” means

(a) undertaking a feasibility study; or

(b) carrying out other studies relevant to environmental issues; or

(c) applying for approval under the Investment Promotion Act 1992 to carry out an activity; or

(d) applying for an approval, permit or licence under another Act,

in relation to a proposed activity.

Section 48 — register one month ahead

A person who proposes to carry out a level 2 or level 3 activity, or to change the nature of a level 2 activity so that it becomes level 3, shall register that intention in writing with the Director at least one month prior to commencing any preparatory work.

Section 49 makes carrying out preparatory work without registering an offence: a corporation up to K20,000.00; another person up to K10,000.00.

Note how early this bites. Applying for a mining or forestry approval, or an Investment Promotion Act approval, is itself preparatory work. So is commissioning a feasibility study. The registration must be in before any of that begins. Section 48(2) allows the Regulation to except categories of level 2 activity.

Section 50 — the notice to undertake assessment

When an EIA notice is served
ProvisionTriggerWho decides
50(1)Notification of preparatory work for a proposed level 3 activityThe Director shall serve the notice
50(2)A proposed level 2 activity that (a) involves an industrial or manufacturing process not previously used in Papua New Guinea; or (b) is specifically the subject of obligations under a ratified international treaty or convention; or (c) poses a threat of serious environmental harmThe Minister, on the Council’s recommendation, may determine it relates to matters of national importance and require the notice
Section 50(4) — the gate

Where a notice has been served, an application for an environment permit may not be accepted in relation to the activity unless the assessment has been completed and the Minister has given an approval in principle.

Section 50(3) requires the notice to be served within the time fixed by the Director in the Operational Procedures.

Section 51 — the seven stages

An environmental impact assessment shall involve

(a) submission of an inception report (s 52) setting out the issues to be covered;

(b) submission of an environmental impact statement (s 53) setting out the physical and social environmental impacts likely to result;

(c) assessment and public review of the statement (ss 54, 55);

(d) acceptance of the statement by the Director (s 56);

(e) referral of the statement, assessment report and other material to the Council (s 57);

(f) recommendation by the Council to the Minister (s 58); and

(g) an approval in principle by the Minister (s 59).

Note the phrase in paragraph (b)

The statement must address physical and social environmental impacts. Social impact is not an optional extra in Papua New Guinea — it is written into the statutory description of what an impact statement is, and it connects directly to the matters of national importance: traditional social structures, subsistence food and water, and the role of landowners in decisions about their land.

Section 52 — the inception report

Section 52

(1) Before submitting a statement, a proponent must submit an inception report listing the issues to be covered by it.

(2) The Director may issue Operational Procedures in the form of guidelines for inception reports, and a report shall comply with them.

(3) The Director shall, within 60 days of lodgement, either (a) approve the report where satisfied it lists all the relevant issues relating to potential impacts; or (b) refer it back for amendment and re-submission.

(4) Where the Director has done neither within 60 days, the inception report is deemed to be approved and the proponent may proceed with the statement in accordance with it.

The 60-day deemed approval cuts both ways

For a proponent, it prevents the process stalling. For anyone concerned about a project, it means the scope of the impact statement can be settled by inaction. The inception report is where the terms of reference are fixed — if an issue is not listed there, it may not be covered in the statement at all.

Section 52(5) requires the Operational Procedures to specify the manner in which the Director must respond.

Section 53 — the environmental impact statement

The statement must cover the issues set out in the approved inception report (s 53(1)). Subject to the Act, the Operational Procedures provide for its form, content, timing and procedures (s 53(2)). See what happens to an impact statement for assessment, public review, acceptance and the Council’s recommendation.

The timetable at a glance

Statutory time limits in the assessment process
StepTimeSection
Register intention before preparatory workAt least one month before48(1)
Director decides on the inception report60 days, or it is deemed approved52(3), (4)
Director notifies the assessment periodWithin 30 days of receiving the statement54(2)
Director may extend, with reasonsBy written notice during the period54(3)
No decision in the notified periodDeemed refusal, and section 68 review applies56(3)
Referral to the Council after acceptanceWithin 14 days57
Council’s recommendationWithin 90 days58(1)
Minister’s decision on approval in principleWithin 28 days of the recommendation59(1)

Practical steps

  1. Identify the level early. Level 3 means assessment is mandatory.
  2. Register with the Director before any preparatory work — including before applying for other approvals.
  3. Get the inception report right; it fixes the scope of everything that follows.
  4. Follow the Operational Procedures — compliance with the guidelines is required by section 52(2).
  5. Build in social impact work from the start, not as an appendix.
  6. Consult affected landowners early — section 4(i) requires open, transparent regulation with consultation, and public review follows under section 55.
  7. Watch the deemed provisions — deemed approval of the inception report at 60 days, deemed refusal of the statement if no decision issues in the notified period.

Sources

Check the section yourself

Before relying on anything here, read the current text of the Environment Act 2000 and check for later amendments. If a decision matters to you, get advice — start with the Office of the Public Solicitor, or find a firm in the law firms directory.

Disclaimer: This article provides general information about Papua New Guinea law and does not constitute legal advice. Laws may change, and their application depends on individual circumstances. You should obtain professional legal advice for your specific situation. Read the full disclaimer.