Clean Air and Sustainable

CLEAN AIR AND SUSTAINABLE

ENVIRONMENT (CASE)PROJECT

ENVIRONMENTAL AND SOCIAL

MANAGEMENT FRAMEWORK

July 2008

GOVERNMENT OF BANGLADESH

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Table of Contents

Abbreviations & Acronyms...... iii

Definition of Selected Terms...... v

A. INTRODUCTION: ENVIRONMENTAL & SOCIAL......

SAFEGUARDS AND MITIGATION ISSUES......

Project Objectives & Activities

Environmental Safeguards Implications

Social Safeguards Implications

ESMF Objectives

Basic Principles

Safeguards Screening & Mitigation Guidelines

Community/Stakeholder Consultation

Grievance Redress

ESMF & Subproject Implementation

Training & Capacity Building

Monitoring & Reporting

Disclosure

B. ENVIRONMENTAL SAFEGUARDS

Relevant Environmental Laws and Requirements

Bank's Environmental Safeguards

Environmental screening

Other Environmental Procedures

GUIDELINES FOR USING PRIVATE & PUBLIC

LANDS AND IMPACT MITIGATION

Land Needs & Mitigation Issues

Options for Obtaining Lands

Mitigation Objectives

Applicability & Impact Mitigation Plans

Land Acquisition & Impact Mitigation Principles

Eligibility for Compensation/Assistance

Compensation Principles & Standards......

Compensation Payment

ENTITLEMENT MATRIX

Preparation of Mitigation Instruments

Contents of RP & ARP

Community/Stakeholder Consultations

Documentation

Monitoring & Reporting

Land Acquisition & Resettlement Budget

Annex A1: SCREENING FORM FOR SOCIAL SAFEGUARDS ISSUES

Annex A2: STAKEHOLDER CONSULTATIONS – A NOTE......

Annex B1: ENVIRONMENT CONSERVATION RULES 1997

– AMBIENT AIR & NOISE STANDARDS

Annex B2: ENVIRONMENT CONSERVATION RULES 1997 – REGULATORY REQUIREMENTS IN THE BRICK SECTOR

Annex B3: ENVIRONMENTAL MANAGEMENT REQUIREMENTS IN THE DEMONSTRATION BRICK KILN INITIATIVES

Annex B4: ENVIRONMENTAL MANAGEMENT REQUIREMENTS IN TRAFFIC MANAGEMENT INITIATIVES

Annex C1: SUGGESTED METHODS FOR

MARKET PRICE SURVEYS

Annex C3: MONITORING LAND ACQUISITION, AND PREPARATION & IMPLEMENTATION OF IMPACT MITIGATION PLANS

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ABBREVIATIONS & ACRONYMS

AQC: / Air Quality Cell
AQM: / Air Quality Management
ARP: / Abbreviated Resettlement Plan
BKEM: / Brick Kiln Emission Management
BRTA: / Bangladesh Road Transport Authority
CASE: / Clean Air and Sustainable Environment
CBO: / Community-Based Organization
CUL: / Compensation-Under-Law
DC: / Deputy Commissioner
DCC: / Dhaka City Corporation
DLAC: / DistrictLand Allocation Committee
DMP: / Dhaka Metropolitan Police
DOE: / Department of Environment
DTCB: / Dhaka Transport Coordination Board
DUTP: / Dhaka Urban Transport Project
EA: / Environmental Assessment
EIA: / Environmental Impact Assessment
EMP: / Environmental Management Plan
ESMF: / Environmental and Social Management Framework
GOB: / Government of Bangladesh
GRC: / Grievance Redress Committee
HCG: / House Construction Grant
HTG: / House Transfer Grant
IDA: / International Development Association
IP: / Indigenous People
IPP: / Indigenous Peoples Plan
LAP: / Land Acquisition Proposal
LGD: / Local Government Division
MOC: / Ministry of Communications
MOEF: / Ministry of Environment & Forestry
MOLGRDC: / :Ministry of Local Government, Rural Development & Cooperatives
MSP: / Municipal Services Project
NGO: / Non-Governmental Organization
OP 4.01: / Operational Policy 4.01 (on Environmental Assessment)
OP 4.10: / Operational Policy 4.10 (on Indigenous Peoples)
OP 4.12: / Operational Policy 4.12 (on Involuntary Resettlement)
OPN 11.03: / Operational Policy Note 11.03 (on Management of Physical Cultural Property)
PAH: / Project Affected Household
PAP: / Project Affected Person
PD: / Project Director
PIA: / Project Implementation Agency
PMSC: / Project Management Supervisory Committee
PMT: / Project Management Team
PPSC: / Project Preparation Supervisory Committee
PPT: / Project Preparation Team
RP: / Resettlement Pan
SA: / Social Assessment
SIA: / Social Impact Assessment
SMC: / Supervision & Monitoring Consultants
TOR: / Terms of Reference
VNR: / Vested Non-Resident
WB: / World Bank

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Clean Air and Sustainable Environment (CASE) Project

Environmental & Social Management Framework

DEFINITION OF SELECTED TERMS

Compensation: Payment made in cash to the project affected persons/households for the assets acquired for the project, which includes the compensation provided in the Acquisition and Requisition of Immovable Property Ordinance 1982 and others stipulated in this Social Impact Management Framework.

Compensation-Under-Law (CUL): Refers to the compensation assessed for the acquired lands and other assets, such as trees, houses/structures, etc., by different government agencies as per the methods provided in the Land Acquisition Ordinance, and paid by the Deputy Commissioners.

Consultation Framework: In view of their stakes and interests in the project or subprojects,the framework is prepared to guide the project preparation team about who are to be discussed/consulted about the overall project and its positive and negative social impact implications and to seek their inputs and feedback in the different stages of the project cycle.

Cut-off Dates: These are the dates on which censuses of the affected persons and their assets are taken. Assets like houses/structures and others, which are created and the persons or groups claiming to be affected, after the cut-off dates, become ineligible for compensation and assistance. For private lands, these dates will however not constitute ‘cut-off dates’, if the legal Notice-3 is already issued before the censuses are taken. In such a situation, the Notice-3 dates are considered ‘cut-off dates’, as the acquisition ordinance prohibits changes in the appearance of the lands after issuance of Notice 3.

Entitlement: Refers to mitigation measures, which includes cash payments by DCs and Implementing Agencies, as well as any non-cash measures stipulated in this ESMF(e.g., allowing the affected persons to keep felled trees, salvageable building materials, etc.), for which compensation is already paid.

Income Restoration: Refers to re-building the capacity of the project affected households to re-establish income sources at least to restore their living standards to the pre-acquisition levels.

Indigenous Peoples: Unless they are already recognized, the Indigenous Peoples are identified in particular geographic areas based on these four characteristics: (i) self-identification as members of a distinct indigenous cultural group and recognition of this identity by others; (ii) collective attachment to geographically distinct habitats or ancestral territories in the project area and to the natural resources in these habitats and territories; (iii) customary cultural, economic, social, or political institutions that are separate from those of the dominant society and culture; and (iv) an indigenous language, often different from the official language of the country or region.

Involuntary Resettlement: The situation arises where the State’s power of eminent domain requires people to acquiesce their rights to personal properties and re-build their lives and livelihood in the same or new locations.

Participation/Consultation: Defined as a continuous two-way communication process consisting of: ‘feed-forward’ the information on the project’s goals, objectives, scope and social impact implications to the project beneficiaries, and their ‘feed-back’ on these issues (and more) to the policymakers and project designers. In addition to seeking feedback on project specific issues, participatory planning approach also serve the following objectives in all development projects: public relations, information dissemination and conflict resolution.

Physical Cultural Resources: Defined as movable or immovable objects, sites, structures, groups of structures, and natural features and landscapes that have archaeological, paleontological, historical, architectural, religious, aesthetic, or other cultural significance. Physical cultural resources may be located in urban or rural settings, and may be above or below ground, or under water. Physical cultural resources are important as sources of valuable scientific and historical information, as assets for economic and social development, and as integral parts of a people’s cultural identity and practices. Their cultural interest may be at the local, provincial or national level, or within the international community.

Project-Affected Person/Household: Persons/households whose livelihood and living standards are adversely affected by acquisition of lands, houses and other assets, loss of income sources, and the like.

Rehabilitation: Refers to improving the living standards or at least re-establishingre-establishing the previous living standards, which may include re-building the income earning capacity, physical relocation, rebuilding the social support and economic networks.

Relocation: Moving the project-affected households to new locations and providing them with housing, water supply and sanitation facilities, lands, schools and other social and healthcare infrastructure, depending on locations and scale of relocation. [Homestead losers may also relocate on their own in any location they choose.]

Replacement Cost: The World Bank’s OP 4.12 on Involuntary Resettlement describes “replacement cost” as the method of valuation of assets that helps determine the amount sufficient to replace lost assets and cover transaction costs. In applying this method of valuation, depreciation of structures and assets are not taken into account. For losses that cannot easily be valued or compensated for in monetary terms (e.g., access to public services, customers, and suppliers; or to fishing, grazing, or forest areas), attempts are made to establish access to equivalent and culturally acceptable resources and earning opportunities. Where domestic law does not meet the standard of compensation at full replacement cost, compensation under domestic law is supplemented by additional measures necessary to meet the replacement cost standard.

Stakeholder: Refers to recognizable persons, and formal and informal groups who have direct and indirect stakes in the project, such as affected persons/households, shop owners, traders in sidewalks/kitchen markets, squatters, community-based and civil society organizations.

Top-Up Payment: Refers to Implementing Agency’s payment in cases where the compensation-under-law (CUL) determined and paid by DCs falls short of the replacement costs/market prices of the affected lands and other assets.

Vested Non-Resident Properties: Originally known as “enemy properties”, these have been left behind by the people of minority communities who migrated to India and other countries since the independence and partition of India in 1947. Some of these properties have been identified thru 1984, and have since been leased to private citizens or allocated to various government agencies. The act is known to be controversial and have been widely abused.

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Clean Air and Sustainable Environment (CASE) Project

Environmental & Social Management Framework

A. INTRODUCTION: ENVIRONMENTAL & SOCIAL

SAFEGUARDS AND MITIGATION ISSUES

1.This Environmental and Social Management Framework (ESMF) is proposed to deal with environmental and social safeguards issues that may arise under the proposed Clean Air and Sustainable Environment (CASE) Project. A Project Preparation Team (PPT), representing the Ministry of Environment and Forestry (MOEF), Ministry of Local Government, Rural Development & Cooperatives (MOLGRDC), and Ministry of Communications (MOC) of the Government of Bangladesh (GOB), is presently preparing the project activities. The PPT will evolve into Project Management Team (PMT) as the project goes into implementation. A multi-agency Project Preparation Supervision Committee (PPSC), headed by the Director General of the Department of Environment (DOE), is coordinating and overseeing the preparation process, and will act as Project Management Supervisory Committee (PMSC) once the project becomes effective. The project will be implemented with financial support of the World Bank.

2.The provisions of this ESMF are proposed in view of the World Bank’s project financing policy that requires the borrowers to assess potential environmental and social safeguard issues and impacts in project preparation and adopt and implement appropriate measures to mitigate them, in compliance with the specified policies. In this regard, since the exact nature and scale of safeguards impacts under the specific subprojects remain to be assessed, the issues and impacts addressed in the ESMF have been largely based on the experience with similar projects implemented in the recent past. Once the subprojects are selected and the scopes of works are determined, the ESMF will provide the basis to assess the environmental and social safeguard issues and impacts, and prepare the necessary adverse impact mitigation plans.

3.The ESMF is divided into three sections. This section introduces the project as a whole with analyses of the potential environmental and social safeguard aspects; outlines the principles and guidelines for selection and design of physical works and the environmental and social screening thereof; implementation arrangement; grievance redress procedure; and other aspects that are applicable to both environmental and social issues. Section B provides specific principles and guidelines to assess and mitigate adverse environmental impacts. The principles and guidelines for land acquisition and resettlement are provided in Section C.

Project Objectives & Activities

4.In keeping with its functional division between sectors, the project is structured around two components: (i) environment, which includes addressing brick kiln emissions; and (ii) transport, which includes addressing traffic management and safety issues. In addition, given the various agencies involved in the project implementation, a third component, project management, is included. The details of the components are provided below.

Component 1: Environment (US$ 16.31 million)

5.This project component is aimed at strengthening the environmental agency’s capacity and capability to effectively address air pollution issues. It will be executed by the Department of Environment (DOE), which is a part of the MOEF, in consultation with stakeholders from the key polluting sub-sectors. While details of this project component are provided in Annex 4, a summary is provided below.

Sub-component 1A: Capacity building for air quality management (US$ 7.86 million)

6.This sub-component will support: (i) the Air Quality Cell (AQC) at DOE; (ii) air quality monitoring, data analysis, and reporting; and (iii) standards, enforcement, and controls for emissions reduction.

1A.(i): Air Quality Cell (AQC). This sub-component will provide support to the AQC at DOE which has been envisaged as the vehicle for implementing all activities related to the abatement of air pollution in Bangladesh. DOE recognized the need for creating AQC because the air quality program activities in the department were dispersed among many units within DOE and they needed to be consolidated. A detailed report and proposal on AQC’s administrative structure and staffing was prepared by an international consultant during project preparation. GOB, through the Establishment Division and the Ministry of Finance is in the process of establishing the AQC with 20 staff members initially, which is envisaged to increase in the context of the ongoing reform on DOE staffing. AQC is proposed to be responsible for programs in air quality monitoring, data analysis and reporting, program planning - including standards, enforcement and controls for emissions reduction from vehicles and industrial facilities; as well as public information and administration. To empower AQC’s staff, the project will support a strong capacity building program. In view of the improvements to DOE’s staff working on air quality management, the project will support the creation of infrastructure facilities for developing and implement air quality management programs and initiatives.

1A.(ii): Air quality monitoring, data analysis and reporting. The previous Bank-supported Air Quality Management Project (AQMP) helped create an air quality network of five Continuous Air Monitoring Stations (CAMS) and equipped DOE with nine Satellite Air Monitoring Stations (SAMS), and laboratory equipment. The CASE project will build on the progress made under AQMP and will support the provision of appropriate hardware and software facilities, selected studies to strengthen DOE’s various functions, enhancements for reporting, use of air quality information for planning, public awareness (via website and other media) and development of public alert systems. Six new CAMS will be installed and industrial facility monitoring undertaken, in order to complement ambient air quality data with source-oriented emissions data, which will help in identifying the sources of emissions and developing action plans for reducing air pollution.

1A.(iii): Standards, enforcement and controls for emissions reduction. This subcomponent will focus on creating / strengthening the regulatory framework for emissions reduction from vehicles and small scale industrial sources. By law, DOE within MOEF has the legal authority and responsibility for air quality management. However, the Environmental Conservation Act (ECA) of 1995 and Environmental Conservation Rules (ECR) of 1997 do not have adequate enforcement mechanisms. Revisions of the ECR 1997 are needed in order to introduce stricter standards and an amendment of the ECA 1995 is required to enforce “the polluter pays” principle. These will be supported by the project. The enforcement of current standards – a crucial part of environmental regulation – remains weak. Under the proposed project, the vehicular emission control program will be further strengthened with a focus on addressing emissions from diesel commercial vehicles[1], and stronger enforcement. The emissions control program will be expanded to include control of industrial air emission through the introduction of stricter standards, compliance testing, and enforcement.

Sub-component 1B: Brick kilns emissions management (US$ 5.67 million)

8.This sub-component aims to usher in a new era for brick manufacturing in Bangladesh. On the one hand, DOE will work towards changing the institutional, legal and regulatory framework. The project will establish a Brick Project Advisory Committee with representatives from the Government, industry and stakeholder institutions. The project aims to develop a long-term strategic policy framework for the brick industry that will include strengthening of laws and regulations. Thelatter will include the revision of the Brick Burning Act and other related legislation. In addition, it is expected that the capacity of GOB's personnel will be substantively built through awareness raising, competencebuilding programs and exposure visits.

9.On the other hand, the adoption of cleaner technologies and practices will be promoted with the brick enterprises through demonstration projects. The brick sector industry association proposed approximately 35 demonstration projects as the minimum number required for catalyzing widespread adoption. Technical support to these cleaner technologies and practices are vital. Such technical capacity development, an integral part of this sub-component, will be provided to the stakeholder institutions. Broadly referred to as the "stick-and-carrot" approach, this project will support a whole range of activities aimed at reducing local air emissions from the brick sector. This will also lead to reduced energy consumption and therefore lower greenhouse gas emissions. Following the completion of the demonstration projects, it is estimated that some 400-500 brick manufacturers (i.e., 10% of the total number of kilns or 42% of the north Dhaka cluster) will switch to the newer and cleaner brick manufacturing practices. The latter wouldlead to a potential decrease of local emissions by 20-30%, and energy savings & greenhouse gas emissions reduction of 15-20%. Given the GHG emissions reduction potential, the project is facilitating the development of two carbon finance projects that are likely to be implemented in parallel with the CASE project. It is envisaged that the revenue streams from carbon finance would provide additional incentive for the uptake of cleaner technologies and practices. Further assessment of the requirements for continued financial incentives would be undertaken during the early stages of the project implementation.