Social and Environmental Management Framework (Semf)

PART 2 – Section A

SOCIAL AND ENVIRONMENTAL MANAGEMENT FRAMEWORK (SEMF)

Table of Contents

1Introduction

1.1Project background

1.2About KUIDFC

1.3Objectives of KMRP

1.4Project components

A.Institutional Development & TA Component (Reforms)

B.Investment Support Component (Investment)

C.Bangalore Development Component (Investment)

D.Project Management Support (Reforms)

1.5Size of investment

1.6Implementation arrangements

1.7Basis for the Social and Environment Management Framework (SEMF)

1.8Purpose of the SEMF

1.9Composition of the SEMF

2Social and Environmental Policies

2.1Context

2.2Social Policy

2.3Environmental Policy

2.4Other Enabling Factors

3Legal requirements

3.1General

3.2Social

3.2.1Land Appropriation

3.2.2Wages

3.2.3Child Labour

3.2.4Differently Abled

3.2.5SCs and STs

3.3Environmental

3.3.1Water Pollution & Water Cess Acts & Rules

3.3.2Air Pollution Act & Rules

3.3.3Environment (Protection) Act / Rules

3.3.4Noise

3.3.5Coastal zones

3.3.6Legal requirements of stone crushing units

4Categorization of sub-projects

4.1Background

4.2Water sector sub-projects

4.3Sewage & Sanitation sector sub-projects

4.4Solid waste management sector

4.5Urban transport sector

4.6Other sectors

4.6.1Lighting and Signage

4.6.2Commercial Civic Amenities

4.6.3Public Civic Amenities

4.6.4Urban Planning and Development

5Social Impacts and Mitigation

5.1Introduction

6Environmental Impacts and Mitigation Measures

6.1Introduction

6.2Incorporating mitigation measures in EMP

6.2.1Category Ea sub-projects

6.2.2Category Eb sub-projects

6.2.3Category Ec sub-projects

6.3Incorporating the EMP in the contract documents

7Sub-project cycle and social & environmental requirements

7.1General

7.2Identification

7.3Screening and categorization

7.4Preparation

7.5Appraisal

7.6Approval

7.7Loan Sanction and Disbursement

7.8Implementation

7.9Operation & Maintenance

7.10Monitoring and Reporting

7.10.1Arrangements

7.10.2Monitoring Reports

7.10.3External audits

8Public / stakeholder consultations and disclosure

8.1Introduction

8.2Consultations in preparing the SEMF

8.3Consultations and Stakeholder Involvement

8.3.1In preparation of CIP

8.3.2During sub-project implementation

8.4Disclosure

8.4.1State level

8.4.2District level

8.4.3Grievance Redressal Mechanism

9Organizational Roles and Responsibilities

9.1Introduction

9.2KUIDFC

9.2.1General

9.2.2Role in KMRP

9.2.3Staff positions for KMRP

9.3BMP

9.4Panel of Consultants

9.5DUDC

9.6ULBs

9.7Panel of Advisors

10Capacity-Building & Training

10.1Background

10.2Objectives

10.3Approach

10.3.1Diagnostics Phase

10.3.2Intervention Phase

10.3.3Institutionalization Phase

10.4Training Needs Assessment

10.5Training Design and Delivery

10.6Workshops and Seminars for Learning Experiences

10.7Support Structure of Advisory Panels and Consultants

10.8Policy Studies for Future Strategies

10.9Programmes to be conducted

10.10Suggested Broad Based Programmes

10.11Methodology and Timeframe

11Budgetary Requirements

11.1General

11.2Manpower resources

11.3Capacity-building

11.4External Support

11.5Sub-project costs

11.6Studies

11.6.1EAs and SA / RAP preparation

11.6.2Comprehensive review of SEMF during mid-term

11.6.3Special

12Updation / Maintenance of SEMF

12.1Need & nature of the updation

12.2New legal requirements & updation

12.3Comprehensive SEMF review

13Annexures

13.1R & R Policy

13.1.1Introduction

13.1.2Type of Sub-Projects and Impacts

13.1.3Categorization

13.1.4Overarching Principles

13.1.5Definitions

13.1.6Community Participation

13.1.7RAP Preparation and Approval Process

13.1.8Land Appropriation - Compensation Valuation

13.1.9Entitlement Framework

13.1.10Institutional Arrangements

13.1.11Grievance Redressal

13.1.12Monitoring

13.1.13Budgets

13.1.14Amendment

13.2ToR for the external audit of selected sub-projects

13.3ToR for the SEMF review

Karnataka Urban Infrastructure Development Finance Corporation

Karnataka Municipal Reforms Project – SEMF

1Introduction

1.1Project background

Government of Karnataka (GoK) has set out to implement many reforms programmes in the state. Prominent among these are the efforts of the Urban Development Department (UDD) through Karnataka Urban Infrastructure Development and Finance Corporation (KUIDFC) in providing urban infrastructure and initiating municipal reforms. The UDD presently has many externally aided projects under implementation and is initiating the process of preparing the Karnataka Municipal Reforms Project (KMRP) with financial assistance from the World Bank (WB). Deficiency in urban infrastructure provision due to lack of financial resources and technical capacity and huge unmet urban public health and sanitation needs are the primary drivers for the initiation of the KMRP. Implementing 74th Constitutional Amendment in true letter and spirit is the context in which the KMRP is being undertaken. However, municipal financial capacity and municipal effort towards resource mobilization will drive towards investment under various project components.

1.2About KUIDFC

The primary borrower would be the UDD, GoK through Government of India. The UDD, GoK would be implementing KMRP through KUIDFC.

KUIDFC was incorporated under the Companies Act, 1956 (No. 1 of 1956) and the company is a Limited Corporation. KUIDFC was set up in the year 1993 with a 100% share holding by the GoK. The state is one of the rapidly urbanizing states in India - an estimated one-third of the population of the state lives in urban areas. The infrastructure facilities in the towns and the cities have not kept in pace with the urban growth. KUIDFC aims to bridge this gap. KUIDFC’s objectives include the following:

Project formulation and appraisal of urban infrastructure development projects.
Providing financial and technical assistance to municipalities / development agencies.
Mobilization of funds from different sources - Government and Financial Institutions (internal and external institutions like Housing and Urban Development Corporation (HUDCO), Asian Development Bank (ADB), World Bank (WB), etc.) for infrastructure development projects.
Project Monitoring and implementation.
CapacityBuilding / Training to enable efficient implementation of urban development projects.

1.3Objectives of KMRP

The vision of the project is to improve the level, quality and sustainability of basic urban services in selected Urban Local Bodies (ULBs), contributing to improved quality of life among the urban poor.

The objective of the proposed project is to support state urban reforms and improve city management and municipal services.

The following are the overall objectives of the KMRP.

(a) at the state level, foster the decentralization process through improved governance and oversight of local governments;

(b) at the municipal level, enhance the accountability and financial soundness of the Urban Local Bodies (ULB) of Karnataka, and

c) improve service delivery to the urban population.

The following are the specific objectives of the KMRP:

Enhance accountability, transparency and promote good governance
Make ULBs need sensitive, demand responsive and self-reliant
Improve service delivery by way of advancing the process of decentralization and management at both state and local level
Combine state level policy support and local action plans
Promote institutional reforms capacity building measure and performance based investments
Explore and promote ways for public private partnerships
Enhance community awareness and participation

1.4Project components

The project components are grouped under four categories – two reforms (A and D) and two investment components (B and C):

A.Institutional Development & TA Component (Reforms)

This component consists of the following Technical Assistance (TA) studies.

A1. Computerization of Municipal function
A2. TA to Town PlanningDepartment
A3. Implementation of new Accounting systems in ULBs
A4. ProjectDevelopment Advisory Facility
A5. CapacityBuilding of ULBs including BMP
A6. IEC and costs of experts to advice to KUIDFC and State Departments

B.Investment Support Component (Investment)

B1. General Urban Investment Component: The sub-projects in this category include:

Water Supply (improvements)
Transportation
Street Lighting
Lakes and Water Bodies Development
Commercial Civic Amenities
Common Civic Amenities

B2. Public Health Investment Support : The sub-projects in this category include:

Storm Water Drainage
Sewerage and Sewage Treatment Plants
Municipal Solid Waste Management
Low Cost Sanitation
Public Conveniences

C.BangaloreDevelopment Component (Investment)

C1. CapacityBuildingSupport

C2. Investment Support: This include the following:

Roads (improvements)
Grade Separators
Footpaths
Storm Water Drainage

D.Project Management Support (Reforms)

The project investments to be performance based and demand driven. However, KUIDFC assumes the responsibility of financing all ULBs (committing to implement reforms) for tackling public health related sanitation investments. The first batch of ULBs selected for investments consists 17 ULBs and Bangalore.

The list of first batch of 17 ULBs is as follows:

Hassan
Chitradurga
Chikkamagalur
Bhadravathi
Doddaballapur
Chintamani / Shimoga
Kolar
Chikkaballapur
Robertsonpet
Chittapur
Tiptur / Athni
Savanoor
Sakeleshpur
Madikeri
Sringeri

1.5Size of investment

The likely size of investment and nature of funding is given in the following table:

Component / Likely Size in US$ Million / Nature
A. Institutional Development and TA Component / 100% Grant
A1. Computerization of Municipal Function / 7.21
A2. TA to Town Planning Department / 2.60
A3. Implementation of new accounting systems in ULBs / 2.79
A4. CapacityBuilding /Training of ULBs / 8.3
A5. Technical Assistance to UDD / 4.31
Sub-Total / 25.22
B. Investment Support Component
B1. General Urban Infrastructure Support / 40.0 / 70% Loan, 30% Grant
B2. Public Health Investment Support / 40.0 / 10% Loan, 90% Grant
Sub-Total / 80.0
C. Bangalore Development Component
C1. CapacityBuildingSupport / 3 / 100% Grant
C2. Investment Component / 28 / 70% Loan, 30% Grant
C3. GBWASP / 69 / 70% Loan, 30% Grant
Sub-Total / 100.0
D. Project Management Support / 8.6 / 100% Grant
Sub-Total / 8.6
Total Baseline Cost / 214

* To be amended as per approval by GoK

A substantial portion of the project outlays are shown as grants. However, the grants would not undermine the implementation of reform agenda. The total amount of grants to ULBs will be performance based and commitment driven, as the ULBs have to achieve pre-determined levels of reforms implementation.

The ULBs, which do not have the loan bearing capacity of 10% under the public health and sanitation improvement component, will be assisted in developing a revenue enhancement plan to enable repayment. In case of failure to repay, GoK will deduct the same from their State Finance Commission (SFC) devolutions.

1.6Implementation arrangements

ULBs will be primarily responsible for implementation of sub-projects. Technical and project management assistance will be provided to ULBs from District Urban Development Cells (DUDCs), Karnataka Urban Water Supply and Drainage Board (KUWS&DB) (for water and sewerage sub-projects) and a panel of consultants. KUIDFC will be the financial intermediary obtaining a loan from the WB for financing the sub-projects proposed by ULBs. The loan proceeds for the sub-projects will directly be remitted to the ULB accounts.

The implementation of A1 (Computerization of Municipal Function) component would be through DMA. The implementation of component A2 (TA to Town Planning Department) would be through Department of Town Planning (DTP). The BMP sub-projects will be implemented by BMP.

The procurement of services will be centrally managed by the KUIDFC for administrative efficiency.

The safeguards issues are taken care of by having a Social and Environmental Management Framework. During the project preparation stage the ULBs and the CIP consultants would use the Borrowers Guidebook to address the safeguards issues.

1.7Basis for the Social and Environment Management Framework (SEMF)

The SEMF was based on the outputs of the Social and Environmental assessment that was carried out during the project preparation. The assessment included secondary information research, primary visits to 17 ULBs, public / stakeholder consultations, description of the baseline conditions and analysis to determine the key social and environmental issues. All the information, analysis and feedback have been suitably incorporated in the SEMF.

The requirements of national, state and local legislative requirements were considered in preparing the SEMF. The WB safeguard policies were also considered and incorporated as required. The ten safeguard policies included the following:

OP 4.01, Environment Assessment
OP 4.04, Natural Habitats
OD 4.10, Indigenous peoples
OP 4.12, Involuntary resettlement
OP 4.36, Forestry
OP 4.09, Pest Management
OPN 11.03, Cultural Property
OP 4.37, Safety of Dams
OP 7.50, Projects on International Waterways
OP 7.60, Projects in Disputed Areas

Of these policies, only two would be applicable.

OP 4.01 would be applicable for sub-projects,which need to be assessed whether or not they are environmentally sensitive, and some of these sub-projects are likely to have diverse and significant environmental impacts.

OD 4.10 is applicable if there are tribals in the area.

OP 4.12 would be applicable if there is involuntary resettlement and rehabilitation due to the sub-project design and implementation requirements.

The SEMF includes the necessary processes to identify and address the requirements of these policies.

Though it is very unlikely that OPN 11.03 (Cultural Property) be triggered, the ULBs should take due note of this during sub-project preparation to cover any chance finds. Hence, during preparation the ULBs and preparation consultants should investigate and inventories all cultural resources that may be potentially affected and should include mitigation measures when there are adverse impacts on physical cultural resources. In this process appropriate agencies, local NGOs, and relevant university departments are to be consulted.

In addition, the SEMF drew from a similar frameworks adopted in the design and implementation experiences of other projects such as Tamil Nadu Urban Development Project-II (ongoing implementation under WB funding) and proposed Gujarat Urban Development Project (prepared but not implemented) and management plans of other projects in the various sub-sectors within the urban sector.

1.8Purpose of the SEMF

The main purpose of the SEMF is to facilitate the management of environment and social issues of investment sub-projects to be funded under KMRP. At the time of project preparation, the different sub-sectors within the urban sector were identified. But the specific sub-projects, i.e. the size, type and location, were not identified. Therefore, it was not possible to develop specific management plans. Considering that the sub-project identification was to be demand-driven, it was felt that it would be best to have a SEMF that would be used by KUIDFC to develop sub-project specific plans as and when required.

By having a SEMF, KUIDFC is also implementing an international good practice for financial institutions - managing social & environment issues of sub-projects using an explicit management framework.

The secondary purpose of the SEMF is to provide information and analytical support on social and environmental issues that are relevant to the municipal reform process. This is to be done through studies and other initiatives.

1.9Composition of the SEMF

The SEMF (described in this document) has the following sections:

Introduction
Social and Environmental Policies
Legal requirements
Social impacts and mitigation
Environmental impacts and mitigation
Categorization of sub-projects
Sub-project cycle and social & environmental impacts
Approaches to stakeholder / public consultations
Capacity-building & training
Budgetary support.
Updation / maintenance of the SEMF

The SEMF has a companion volume “Borrower’s Guidebook,” which gives information that is directly relevant to be borrowers (ULBs) and their consultants. There is information in the Borrower’s Guidebook that is required for the SEMF. In order to avoid repetition, the cross-reference to the Borrower’s Guidebook has been provided instead of repeating such information in the SEMF.

Samaj Vikas ()1

Karnataka Urban Infrastructure Development Finance Corporation

Karnataka Municipal Reforms Project – SEMF

2Social and Environmental Policies

2.1Context

The USP (unique selling proposition) of KUIDFC is “Working Towards A Better Urban Living”.

The GoK through the UDD has mandated the KUIDFC to finance and develop urban infrastructure projects in Karnataka. KUIDFC, which has set out to implement the KMRP, aims to promote environmentally sound and sustainable, socially acceptable and economically viable urban infrastructure projects. KUIDFC believes that each of the sub-projects of the KMRP will improve the living standards and the environment of populations of the participating ULBs and areas around these ULBs. In line with this policy, KUIDFC is committed to identify, prepare and implement socially acceptable, environmentally sound and sustainable and financially sustainable sub-projects. Further, these sub-projects would be implemented with the continuous technological improvement, financial prudence and managerial prowess that are inherent strengths of KUIDFC.

KUIDFC commits to social and environmental policies in this context. In developing these policies, the existing KUIDFC policies – the urban policy and the water policy – have also been referred prior to developing these social and environment policies.

2.2Social Policy

The Social policy aims at addressing the following social issues:

Land Appropriation: Often private Land Appropriation becomes unavoidable when implementing development projects. This deprives the people of the land to which they are attached to. The project emphasis is to minimize this and to properly compensate people who lost their lands.

Displacement: Often people are displaced when their homestead land acquired or land is acquired in bulk for implementation of development projects. This development induced displacement causes hardship to people in relocating and resettling. The project emphasis is to minimize this and to properly resettle people who are displaced.

Loss of Livelihoods: This is a result of Land Appropriation and/or displacement. People who lose their livelihoods have to face hardship in rehabilitating themselves. The project emphasis is to minimize this hardship and properly rehabilitate people who lost their livelihoods.

Top-Down Approach: This approach results in people not owning the products of development interventions and maintaining them. The project emphasis is on using a Bottom-Up Approach through a process of people participation.

Exclusion: Often the vulnerables viz. disadvantaged section, SCs/STs, women, differently abled, etc. are sidelined or taken for granted in the design and implementation of development projects. This alienates them from project interventions and denies access to them to the services. The project emphasis is to provide them opportunities and access through a process of inclusion.

Hazards: Ill-conceived development projects pose health and safety hazards to people. The project emphasis is to address and incorporate health and safety provision in the project design and implementation.

This Social Policy is based on gaining Social Acceptability, Significance, Relevance and Adequacy for each of the sub-projects. This is achieved by commitment to the following Pancha Sutras:

Resettlement: Avoiding or minimizing Resettlement due to Land Appropriation through appropriate technical and management measures. Wherever resettlement is triggered by Land Appropriation and where possible obtaining the agreement of the concerned stakeholders to give their land voluntarily on consent basis, and/or by considering alternatives. The endeavour would be on avoiding Land Appropriation and resettlement.

Rehabilitation: Where resettlement is unavoidable, ensuring proper and responsible resettlement and rehabilitation of Project Affected Persons through sustainable livelihood options that at least restore, if not improve, their standard of living. Ensuring resettlement and rehabilitation plans are prepared and implemented in a timely manner and that those to be resettled are aware of their entitlements and of the grievance mechanisms open to them should they seek redress. The endeavour would be to improve the living standards of the project affected persons.

Participation: Addressing stakeholders legitimate concerns while paying special attention to project affected persons. Providing opportunities and avenues for informed stakeholder consultation, and, where appropriate, their participation in decision-making in project preparation, implementation and evaluation, in order to foster greater ownership and sustainability. The endeavour would be to involve all stakeholders in the complete project life cycle. This endeavour is extended to all community development activities of the project involving all categories of stakeholders. In fact, the process of participation for all community development activities starts from the planning stage itself.