Project/Activity Data

initial environmental examination

PROJECT/ACTIVITY DATA

Project/Activity Name: / Sajhedari
Geographic Location(s) (Country/Region): / Nepal
Amendment / No
Implementation Start/End Dates / August 31, 2018 - August 30 2024
If Amended, specify New End Date: / N/A
Solicitation/Contract/Award Number: / TBD
Implementing Partner(s): / TBD
Bureau Tracking ID: / Asia 18-042
Tracking ID of Related RCE/IEE / TBD
Tracking ID of Other, Related Analyses: / N/A

ORGANIZATIONAL/ADMINISTRATIVE DATA

Implementing Operating Unit(s): / USAID Nepal
Other Affected Operating Unit(s): / N/A
Lead BEO Bureau: / Asia Bureau
Funding Operating Unit(s): / USAID Nepal/DGO
Funding Account(s) (if available): / ES-OCO/2017/2018, ES-OCO/2017/2018
Original Funding Amount: / Initial Obligation = $2.100,000
Total Estimated Ceiling = 12-15m
If Amended, specify funding amount: / N/A
If Amended, specify new funding total: / N/A
Prepared by: / Mike Keshishian, DCHA/DRG/GROL
Date Prepared: / February 5, 2018

ENVIRONMENTAL COMPLIANCE REVIEW DATA

Analysis Type: / X Environmental Examination / Deferral
Environmental Determination(s): / X Categorical Exclusion(s)
X Negative / Positive
Deferred (per 22CFR216.3(a)(7)(iv)
IEE Expiration Date / August 30, 2024
Additional Analyses/Reporting Required: / None Required
Climate Risks Identified (#): / Low X Moderate ______High ______
Climate Risks Addressed (#): / Low X Moderate ______High ______

THRESHOLD DETERMINATION AND SUMMARY OF FINDINGS

PROJECT/ACTIVITY SUMMARY

The objective of the Sajhedari (Nepali for “partnership) activity” is to provide primarily technical assistance to the Government of Nepal (GON) in transitioning from a unitary state to a federation of provinces with more effective, accountable, responsive and inclusive local governance.

Sajhedari has the following three objectives:

Objective One: The GON creates and implements sound policies and legislation that empower, finance and regulate provincial and municipal governments (estimated 10% LOE)

Objective Two: Targeted Provincial and municipal governments are more responsive, accountable, transparent and effective in delivering priority services and fulfilling core legal responsibilities (estimated 55% LOE)

Objective Three: Citizens and civil society organizations, including the marginalized, in target municipalities have improved capacity and activity participate local decision making and oversight (estimated 35% LOE)

ENVIRONMENTAL DETERMINATIONS

The Sajhedari Request for Proposals will contain a Statement of Objectives (SOO) rather than a Statement of Work (SOW). For this reason, specific activities and deliverables cannot yet be identified. However, for the purposes of this environmental review, we can with certainty group activities that will happen under Sajhedari into two classes:

Technical Assistance and Training in Areas related to Local Governance, and
Small to Medium Scale Reconstruction/Rehabilitation.

A categorical exclusion is recommended pursuant to 22 CFR 216.2(c)(2)(i) for the class of activities of “Technical Assistance and Training in Areas related to Local Governance”.

This class of activities identified as meeting a threshold for a Negative Determination with Conditions is “Small to Medium Scale Reconstruction/Rehabilitation”. For this class of activities, a justification for a negative determination with conditions is provided and possible mitigation measures identified.

Detailed environmental determinations (and conditions, where applicable) per class of activity is provided under Section Four of this IEE.

Upon approval of this document, the determinations become affirmed, per Agency regulations (22CFR216).

The following table summarizes the environmental determinations applicable to the two classes of activities under Sajhedari:

Table 1: Environmental Determinations

Projects/Activities / Categorical Exclusion Citation (if applicable) / Negative Determination / Positive Determination / Deferral[1]
Technical Assistance and Training in Areas related to Local Governance / X
Small to Medium Scale Reconstruction/Rehabilitation / X

Climate Risk Management

This activity CRM screening showed none climate risk and hence scored no Risk or low climate risk rating for technical assistance and training activities. However, for small scale construction there is a moderate risk which can be mitigated with climate resilient DESIGN AND construction.

BEO SPECIFIED CONDITIONS OF APPROVAL

N/A

IMPLEMENTATION

In accordance with 22CFR216 and Agency policy, the conditions and requirements of this document become mandatory upon approval. This includes the relevant limitations, conditions and requirements in this document as stated in Sections 3, 4, and 5 of the IEE and any BEO Specified Conditions of Approval.

1. IP Briefings on Environmental Compliance Responsibilities. USAID/Nepal/DGO shall provide each implementing partner (IP) with a copy of this IEE. Each IP shall be briefed on their environmental compliance responsibilities by their COR/AOR. Such briefings will identify the IEE conditions applicable to each IP’s activities.

2. Development of an EMMP. Each IP whose activities are subject to one or more conditions set out in Section Three of this IEE shall develop and provide to the COR/AOR for review and approval an Environmental Mitigation and Monitoring Plan (EMMP) that clearly documents how their project will implement and verify all IEE conditions and mitigation measures that apply to their activities.

These EMMPs shall identify how the IP will ensure that IEE conditions that apply to activities supported under sub-contracts and sub-grants are implemented. In the case of large sub-grants or subcontracts, the IP may elect to require the sub-grantee/sub-contractor to develop their own EMMP. A sample EMMP format is included as ANNEX A to this IEE.

3. Integration and implementation of EMMP. Each IP shall integrate their EMMP into their project work plan and budgets, implement the EMMP, and report on its implementation and findings as an element of regular project performance reporting.

IPs shall ensure that sub-contractors and sub-grantees integrate implementation of IEE conditions, where applicable, into their own project work plans and budgets, and report on their implementation and findings as an element of sub-contract or grant performance reporting.

4. Integration of compliance responsibilities in prime and sub-contracts and grant agreements.

a. The DGO Team Leader shall ensure that any future contracts or agreements for implementation of a project, and/or significant modification(s) to current contracts/agreements shall reference and require compliance with the conditions set out in this IEE, as required by ADS 204.3.4.a.6 and ADS 303.3.6.3.e.

b. IPs shall ensure that future sub-contracts and sub-grant agreements, and/or significant modification(s) to existing agreements reference and require compliance with relevant elements of these conditions.

5. Assurance of sub-grantee and sub-contractor capacity and compliance. IPs shall ensure that sub-grantees and sub-contractors have the capacity to implement the relevant requirements of this IEE. The IP shall, as and if appropriate, provide training to sub-grantees and sub-contractors in their environmental compliance responsibilities and in environmentally sound design and management (ESDM) of their activities.

6. New or modified activities. As part of its work plan and all annual work plans thereafter, IPs, in collaboration with their COR/AOR, shall review all ongoing and planned activities to determine if they are within the scope of this IEE.

If any IP adds new activities or makes substantial modifications to existing activities, an amendment to this IEE addressing these activities shall be prepared for USAID review and approval. No such new activities shall be undertaken prior to formal approval of this amendment.

Any ongoing activities found to be outside the scope of the approved Regulation 216 environmental documentation shall be halted until an amendment to the documentation is submitted and written approval is received from USAID.

7. Compliance with Government of Nepal Requirements. Nothing in this IEE substitutes for or supersedes IP, sub-grantee, and sub-contractor responsibility for compliance with all applicable Nepali laws and regulations. The IP, sub-grantees, and sub-contractors must comply with Nepali environmental regulations unless otherwise directed in writing by USAID; however, in case of conflict between host country and USAID regulations, the latter shall govern.

8. Government-to-government (G2G) assistance.In keeping with USAID Forward, investment in country-led plans is an important value, which may include consideration of sector program assistance (SPA) or other government-to-government assistance. USAID/Nepal may need to obtain Authorization for Use of Partner Country Systems (AUPCS) – a requirement for G2G assistance specified in ADS 220 Use of Reliable Partner Country Systems for Direct Management and Implementation of Assistance. This will include certification of the effectiveness of Nepal’s environmental assessment procedures, policy & legislative framework. This should be harmonized with the expectations of other sector donors (World Bank, EU, etc.), in line with the Paris Declaration of Aid Effectiveness.

As required by ADS 204.5.4, the DGO Team will actively monitor and evaluate whether the conditions of this IEE are being implemented effectively and whether there are new or unforeseen consequences arising during implementation that were not identified and reviewed in this IEE. If new or unforeseen consequences arise during implementation, the team will suspend the activity and initiate appropriate further review in accordance with 22 CFR 216. USAID monitoring activities shall include regular site visits.

USAID APPROVAL OF INITIAL ENVIRONMENTAL EXAMINATION

PROJECT/ACTIVITY NAME: Sajhedari

Bureau Tracking ID: Asia 18-042

Approval: / ______
Peter Malnak, Mission Director / ______
Date
Concurrence: / ______William Gibson, Bureau Environmental Officer / ______
Date

Clearance:

Andrei Barannik, REA/SCA & OAPA: clearedDate: 3/11/2018

Mark Driver, Regional Legal Officer and A-DMD:clearedDate: 4/3/2018

Pragya Shrestha, Mission Environmental Officer: cleared Date: 2/21/2018

BUREAU/MISSION/PROJECT1

USAID 216 IEE template version 1, December 2017

initial environmental examination

PROJECT/ACTIVITY NAME: Sajhedari

Bureau Tracking ID: Asia 18-042

Contents

1.0 PROJECT/ACTIVITY DESCRIPTION4

2.0 BASELINE ENVIRONMENTAL INFORMATION6

2.1 Locations Affected and Environmental Context (Environment, Physical, Climate, Social) 6

2.2 Applicable and Appropriate Partner Country and Other International Standards (e.g. WHO), Environmental and Social Laws, Policies, and Regulations 6

2.3 Country/Ministry/Municipality Environmental Capacity Analysis (as appropriate) 6

3.0 ANALYSIS OF POTENTIAL ENVIRONMENTAL RISK7

4.0 Environmental Determinations8

4.1Recommended Environmental Determinations8

4.2 Climate Risk Management9

5.0 CONDITIONS AND MITIGATION MEASURES11

5.1 Conditions11

5.2 Agency Conditions12

5.3 Mitigation Measures13

6.0LIMITATIONS OF THIS INITIAL ENVIRONMENTAL EXAMINATION15

7.0REVISIONS15

Attachments:16

BUREAU/MISSION/PROJECT1

USAID 216 IEE template version 1, December 2017

1.0 PROJECT/ACTIVITY DESCRIPTION

1.1 Purpose and Scope of IEE

The purpose of this document, in accordance with Title 22, Code of Federal Regulations, Part 216 (22CFR216), is to provide a preliminary review of the reasonably foreseeable effects on the environment of the USAID intervention described herein and recommend determinations and, as appropriate, conditions, for these activities. Upon approval, these determinations become affirmed, per 22CFR216 and specified conditions become mandatory obligations of implementation. This IEE also documents the results of the project/activity level Climate Risk Management process in accordance with USAID policy (specifically, ADS 201mal).

This IEE is a critical element of USAID’s mandatory environmental review and compliance process meant to achieve environmentally sound activity design and implementation. Potential environmental impacts should be addressed through formal environmental mitigation and monitoring plans (EMMPs) and/or Environmental Assessments (EAs), if needed.

1.2 Project/Activity Overview

1.3 Project/Activity Description

The Sajhedari project will likely provide services in the area of training, consulting, advising and capacity-building on public administration, creating oversight and accountability mechanisms, public financial management, procurement, drafting policy, legislative and regulations related to federalization, auditing, human resource management, public service delivery, alternative dispute resolution and civil society advocacy work. There will also be some small-scale reconstruction/rehabilitation.

This activity shall directly support the GON and relevant, anticipated new ministries, as well as the Ministry of Federal Affairs and Local Development (MoFALD), and other government institutions, such as relevant parliamentary committees, in the transition to a federal state. Sajhedari shall also engage with two, not yet identified provincial governments. The counterparts at the provincial level shall be elected provincial (executive and legislative) officials as well as civil servants and line ministry representatives. Most activities will take place at the municipality-level with elected representatives (executive and legislative), local civil servants, line ministry representatives and civil society at the ward and sub-ward level.

Following are Sajhedari’s three Objectives:

Objective One: The GON creates and implements sound policies and legislation that empower, finance and regulate provincial and municipal governments (estimated 10% LOE)

Training and Training in Areas Related to Local Governance: and
Small to Medium scale Reconstruction/Rehabilitation (The cost of each construction project will not exceed $5,000) (illustrative examples):
Existing local government buildings;
Existing roads, trails and footbridges;
Tube well and water systems;
Rehabilitation of existing sanitation infrastructure; and
River embankments;
Foot bridges; and
existing irrigation canals;

2.0 BASELINE ENVIRONMENTAL INFORMATION

There are three ecological regions in Nepal. These is the Terai, low lying plains bordering the northern belt of India; the mid-hill areas running north-south at altitudes ranging between 2,000 to 4,500 meters; and the mountainous areas that include the Himalayan mountain ranges in the north.

Nepal is recognized as highly vulnerable to a range of seismic and hydro-meteorological hazards. All of Nepal is exposed to significant earthquake hazard resulting from the convergence of the Indian tectonic plate with the Eurasian plate that also drives the uplift of the Himalayan mountain range. During the 1934 M8.2 Nepal-Bihar earthquake, which had an epicenter 175 km from Kathmandu, almost all buildings collapsed in Kathmandu, Bhaktapur, and Patan. Casualties were estimated to be as high as 12,000. Other major earthquakes were recorded in 1897, 1905, 1934, 1950, and 1988.

The country is drought-prone as well as susceptible to floods and landslides. Nepal is ranked as the 11th most vulnerable country in the world to earthquakes and 30th to flood risks. In the rainy season, a vast section of the population suffers from flood-related disasters that claim numerous lives and cause irreparable damage to public property. Nepal’s flooding predicament and susceptibility is expected to be exacerbated by the impacts of climate change. The recurrence of high intensity rainfall during monsoon causes floods in the low land regions that claim an average of 200 lives annually in the past five years. In addition, due to Nepal’s rugged mountain topography, steep slopes, fragile geology, and extreme terrain conditions, the country faces several other major hazards such as storms, avalanches, and Glacial Lake Outburst Floods.

Combining these hazards and the high level of vulnerability, the country is ranked second in the world to mortality risk from two or more hazards. About 80 percent of its geographic area is at risk from multiple natural hazards with the vast majority of the population inhabiting these high-risk areas. Because of these hazards, the country is susceptible to very high losses from disaster, both in terms of mortality as well as percent GDP loss.

2.1 Locations Affected and Environmental Context (Environment, Physical, Climate, Social)

Sajhedari will be active in 1) the national-level of government in the capital Kathmandu, 2) in two yet to be identified provincial capitals, and 3) in about six municipalities (within the two yet to be identified provinces).

2.2 Applicable and Appropriate Partner Country and Other International Standards

In an attempt to legalize the environmental integration of development projects, the Government of Nepal (GON) enforced the Environmental Impact Assessment Guidelines 1993[1]; Environmental Protection Act 1997[2]; Environmental Protection Rules 1997 (amended in 1998 and 1999)3. The Guidelines, Act, Rules, and other regulations provide the basic legal framework for all environmental assessment in Nepal with the aim to:

●Manage natural and physical resources efficiently and sustainably,

●Balance development efforts and environmental conservation to fulfill the basic needs of the people in a sustainable manner,

●Safeguard national heritage,

●Mitigate the adverse environmental impacts of development projects and human actions, and

●Integrate the environment and development through appropriate institutions, adequate legislation and economic incentives, and sufficient public resources.

The following subsections provide a brief overview of the aforementioned Guidelines, Act, Rules, and other regulations.

National Environmental Impact Assessment Guidelines 1993

These guidelines were developed “to assess the environmental impacts likely to be caused by a project, and to promote its positive impacts and mitigate or eliminate adverse impacts by undertaking preventive or other effective measures after integrating the environmental impacts in the planning cycle of all the projects to be initiated in the Kingdom of Nepal”. The guidelines require screening all the activities of a project/program and determining whether an Initial Environmental Examination (IEE) or Environmental Impact Assessment (EIA) is required.

According to the guidelines, an IEE is required for those projects that are likely to cause known environmental impacts and that can be mitigated. All these projects are included in Schedule 1 of the guidelines. An EIA is required for those projects, as specified in Schedule 2, which have either known significant environmental impact or for which the environmental impacts are not clear.