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37292-042: High Mountain Agribusiness and Livelihood Improvement Project

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Environmental Compliance Monitoring Report Semi-Annual Report No. 7 Grant Number: 0248 NEP July, 2018 Nepal: High Mountain Agribusiness and Livelihood Project Prepared by the Government of Nepal for the Asian Development Bank. This environmental Compliance Monitoring Report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. Your attention is directed to the “terms of use” section of this website. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. Government of Nepal Department of Livestock Services High Mountain Agribusiness and Livelihood Improvement (HIMALI) Project (ADB Grant No.: 0248-NEP (SF)) Environemntal Compliance Monitoring Report of HIMALI Sub-projects (January to June, 2018) Preparaed By HIMALI Project Project Management Unit Harihar Bhawan, Pulchowk Lalitpur July, 2018 1 EXECUTIVE SUMMARY The High Mountain Agribusiness and Livelihood Improvement (HIMALI) Project being implemented by the Ministry of Livestock Development (MoLD) with grant assistance from ADB intends to increase income and employment of high mountain people through value chain development of their niche agricultural, livestock and MAPs/NTFPs. The HIMALI Project (the Project) has considered environmental component to address environmental issues of sub-project (SP) implementation. The IEE report of the HIMALI Project has been approved by Ministry of Agriculture Development (MoAD) in August 2014. The SPs under HIMALI grant are category “C” project and do not require an individual EIA/IEE level of assessment. The environmental safeguard of GoN and ADB is satisfactorily addressed in SPs planning stages. Project procedural requirements such as screening of business plans, review of required documents and field verification are considered necessary during SP approval and planning phase. The Project has included environment management practice as a contractual document for approved SPs and grantees are oriented on environmental issues during contract. The Project has provided environment mitigation and monitoring plan to make the mitigation and monitoring more effective. Environment compliance status of 640 SPs has been reported till June, 2018. Spoil management, landslide control and drainage management are not the significant issues in SPs. Compost pits are constructed by most of the SPs. It is reported that a total of 7,770 trees were cleared during construction and implementation stage of SPs. 1,40,742 number of trees are planted as compensatory and additional plantation by these SPs. According to the data from district, about 48,532 fodder trees and 229,748 fruits plants and 19,797 Utis are planted by SPs of livestock, fruit cultivation and cardamom respectively. Grass cultivation is reported in 103 ha of land by livestock SPs. MAPs including Lokta and Argeli are cultivated on 70 ha of land (22 ha of private land and 41 ha of community forest). MAPs such as Chiraito, Atis are cultivated in 97 ha of land of which Chiraito contributes major percentage. Safety gears and work camp facilities are considered by most of the SPs. No social conflicts and impact to indigenous people were noticed due to SP implementation. The project has established Grievance Handling Mechanism in PMU and respective DPC offices. Till date, DPCs have received and redressed 24 grievances. Few practices such as water source management, grass land and forest management, land management, trees plantation, alternate agriculture practice, MAPs/NTFPs cultivation, bio-briquette production, livestock waste management and integrated pest and nutrient management during agri-business implementation have helped not only to moderate harm of climate change but also to exploit beneficial opportunities for mountain people to adapt changing climate. The project has received environmental monitoring reports from districts until March, 2018. i Considering need of increasing green grass availability for livestock development the project has distributed 4.9 metric ton of improved grass seed to government and NARC farms, and 10 project districts during reporting period. Distributed grass seed include White clover, Alfa alfa, Cocksfoot, and Rye grass. These seeds will increase availability of green grasses in coming season for the livestock which intern contribute in increasing milk production in the districts. The project through its Project Steering Committee meeting has coordinated with Ministry of Forestry for policy level decision to implement HIMALI Project activities effectively in project districts. Likewise, it has discussed and coordinated with forestry off district officials at department level in solving issues like collection of raw materials for sub-projects from the forest. ii ABBREVIATION ADB: Asian Development Bank AEC: Agro-Enterprise Centre BPs: Business Plans CITES: Convention on International Trade in Endangered Species of Wild Fauna and Flora CF: Community Forest CP: Compensatory Plantation DADO: District Agriculture Development Office DAES: District Agro-enterprise Specialist DAM: District Agribusiness Monitor DDC: District Development Committee DDR: Due Diligence Report DFO: District Forest Office DLSO: District Livestock Service Office DMC: District Monitoring Coordinator DMT: District Monitoring Team DPC: District Project Coordination EAM: Environment Assessment and Management ECMR: Environmental Compliance Monitoring Report EDDR: Environment Due-diligence Report EMMP: Environmental Management and Monitoring Plan GACs: Grant Assessment Committees GoN: Government of Nepal GRM: Grievance Redress Mechanism ha: Hectare HIMALI: High Mountain Agribusiness and Livelihood Improvement Project IEE: Initial Environmental Examination LNP: Langtang National Park MAPs: Medicinal and Aromatic Plants MoAD: Ministry of Agriculture Development MoLD: Ministry of Livestock Development NPWCs: National Parks and Wildlife Conserves NR: Not Reported NRs; Nepali Rupees NTFP: Non-timber Forest Product PMU: Project Management Unit RFTQC Regional Food Technology and Quality Control USD: US Dollar WC: Work Camp iii Table of Contents Executive Summary ........................................................................................................................................................... i Abbreviation ...................................................................................................................................................................... iii 1. Background ............................................................................................................................................................. 1 2. Environment Safeguard in The HIMALI Project ............................................................................................. 1 3. Overall Environmental Safeguard Status .......................................................................................................... 2 4. Compliance Status with Environmental Covenants ...................................................................................... 3 5. Institutional Arrangement.................................................................................................................................... 3 5.1 Environmental Compliance Monitoring Mechanism ............................................................................... 4 5.2 Environmental Monitoring Mechanism in District .................................................................................. 4 6. Compliance with Environmental Safeguard Measures .................................................................................. 5 6.1 During Planning and Approval Phase ......................................................................................................... 5 6.1.1 Project Procedural Requirement ..................................................................................................... 6 6.1.2 Verification of necessary government’s approval ......................................................................... 6 6.1. 3 Environment Screening and categorization .................................................................................. 6 6.1.3 Public consultation minutes and resource use consent .............................................................. 6 6.1.4 Land Ownership ................................................................................................................................... 6 6.1.5 Environmental Assessment and Management Checklist ............................................................. 6 6.1.6 Incorporation of environment management practice ................................................................. 7 6.1.7 Budgetary Activities ............................................................................................................................. 7 6.1.8 Environment benefits by MAPs, Fruits and Cardamom SPs ...................................................... 7 6.2 During Implementation Stage ...................................................................................................................... 7 6.2.1 Soil erosion, landslide control, spoil management and drainage management...................... 9 6.2.2 Tree cutting and
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