Environmental Assessment Report Initial Environmental Examination Document Stage: Final Project Number: TA 7528-PAK April 2011 Pakistan: Railway Development Investment Program Prepared by TERA International, Inc. The initial environmental assessment 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. CURRENCY EQUIVALENTS (as of 26 April 2011) Currency Unit – Rupees (PKR) PKR1.00 = $0.0118 $1.00 = PKR84.57 ABBREVIATIONS ADB – Asian Development Bank BOD – biochemical oxygen demand CO – carbon monoxide COD – chemical oxygen demand dB – decibel EA – executing agency EMMP – Environmental Management and Monitoring Plan ENERCON – National Energy Conservation Center GDP – gross domestic product GoP – Government of Pakistan IEE – Initial Environmental Examination km -- kilometer m -- meter MFF – multitranche financing facility MoNP – Ministry of Nature Protection MoR – Ministry of Railways MPE – maximum permissible emissions MPL – maximum permissible loads NIDFF – National Institute of Desserts, Flora and Fauna NCCW – National Council for Conservation of Wildlife in Pakistan NEQS – National Environmental Quality Standards NOC – no-objection certificate NOx – nitrogen oxides NO2 – nitrogen dioxide PRS – Pakistan Rupees PEPO – Pakistan Environmental Protection Ordinance Pak EPA – Pakistan Environmental Protection Agency PFI – Pakistan Forest Institute QMMB – Quaid-I-Azam Mazar Management Board ROW – right-of-way RPM – respirable particulate matter SO2 – sulfur dioxide ZSD – Zoological Survey Department NOTE In this report “$” refers to US dollars. The Government’s Fiscal Year (FY) is from 1 July to 30 June; for example FY 2009–2010 starts on 1 July 2009 and ends on 30 June 2010. 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. TABLE OF CONTENTS EXECUTIVE SUMMARY ........................................................................................................ 1 I. INTRODUCTION ............................................................................................. 1 II. DESCRIPTION OF THE PROJECT ................................................................ 4 III. EXISTING ENVIRONMENTAL FRAMEWORK AND CONDITIONS ............... 7 IV. PROJECT ENVIRONMENTAL IMPACTS AND MITIGATIVE MEASURES .. 20 V. INSTITUTIONAL REQUIREMENTS AND ENVIRONMENTAL MONITORING PLAN ............................................................................................................. 36 VI. ECONOMIC ASSESSMENT ......................................................................... 43 VII. PUBLIC CONSULTATION AND INFORMATION DISCLOSURE ................. 44 VIII. FINDINGS AND RECOMMENDATIONS ...................................................... 44 IX. CONCLUSIONS ............................................................................................ 44 Appendix I: Selected Photos and Observations During the Site Visit ............................... 49 Appendix II: Various Environmental Parameters Quality Standards ................................. 51 Appendix III: Summary of Selected Environmental Laws of Pakistan ................................ 57 Appendix IV: Lists of Species and Biodiversity in the Project Area .................................... 58 Appendix V: Participants in Public Consultation Meetings ................................................. 64 1 EXECUTIVE SUMMARY I. Project Description 1. Pakistan Railways has a large accumulated deficit of PRS 52.5 billion ($617.6 million) as of the end of Fiscal Year 2009-2010. There is an urgent need for improvement in terms of corporate structure, productivity, competitiveness, and resources. The challenges include replacement of old tracks and rolling stock, acquiring locomotives and introduction of modern wagons and carriages, improving signaling and telecommunications systems, eliminating waste and inefficiency, and above all, revamping the entire transportation network with the aim of making it responsive to market needs and customer requirements for reliable and safe service and competitive cost. 2. Under the Multitranche Financing Facility (MFF), a “First Tranche” (Project 1) will cover complete track renewal and rehabilitation from Lahore to Lalamusa. The Project also includes the rehabilitation of the Lahore, Shahdara and Wazirabad railway yards to remove existing permanent speed restrictions, improvements in the telecommunication system, and provision of a new signaling system. A preliminary analysis undertaken by the Technical Assistance (TA) Consultant indicated that the existing track capacity of approximately 28 train pairs per day will be improved to 72 train pairs per day with the proposed improvements envisaged under Project 1. 3. Initially, Project 1 was confined to the Lahore-Wazirabad section (99.7 km) existing track rehabilitation including rehabilitation of the Lahore yard, and remodeling of the Shahdara and Wazirabad yards for removing existing permanent speed restrictions. Based on the TA’s initial findings, and in coordination with PR, it was decided that Project 1 be re- formulated to include the complete track renewal from Lahore to Lalamusa; a section with an estimated length of 132 km). II. Description of the Environment 4. The Project is located within Punjab Province in the central-eastern part of the country. It borders Indian Kashmir to the north, the Indian states of Punjab and Rajasthan to the east, the Pakistani province of Sindh to the south, the province of Balochistan to the southwest, the province of Khyber Pakhtunkhwa to the west, and the Islamabad Capital Territory to the north. 5. The existing railway line (from Lahore to Lalamusa) traverses along National Highway N-5, partly through some cultivated areas and partly through hills and broken land passes. Further north, the existing main railway track between Lahore and Lalamusa crosses the area which is drained by the tributaries of four rivers; Soan, Jhelum, Chenab, and Ravi. Several important cities and towns are located along the track including Shahdara, Gujranwala, Wazirabad, Gujrat, and Lalamusa. 6. The Project area consists of floodplains, which are lightly mantled with alluvial deposits transported from the Himalaya foothills. The Lahore District, where the proposed Project starts, has no major hills or mountains. 7. In terms of surface water resources in the Project area, these include the Ravi and Chenab rivers, and the latter crosses the railway track. The Ravi River enters the district from Amritsar, by the village of Ichogil after a course of 55km and leaves it on the borders of Kasur district. The Chenab River is formed by the confluence of the Chandra and Bhaga rivers at Tandi located in the upper Himalayas in the Lahul and Spiti District of Himachal Pradesh, India. There are no lakes or marshes in the district of Lahore. 8. The quality of groundwater in the Project corridor ranges from fresh near the major rivers to highly saline farther away. The general distribution of fresh and saline groundwater in the country influences the options for irrigation and drinking water supplies. The water quality of the Indus and its tributaries is suitable for irrigation purposes. 2 9. The bulk of rainfall in the Project corridor is received during the monsoon season between July and September. October and November are by far the driest months, except for the sub-humid zone that also receives winter rains. The corridor in the Indus floodplain is prone to flooding in the monsoon season while the rainfall received by less arid sections of the Project corridor helps cleanse the air of suspended dust and supports vegetation cover. 10. The Project corridor has been inhabited for several thousand years and is relatively densely populated with a range of agricultural and manufacturing activities—it is one of Pakistan’s leading industrial areas. As a result, wildlife abundance and diversity in this area is very low. III. Environmental Impacts and Mitigative Measures 11. The Project alignment is an existing one that will be rehabilitated. The impacts related to rehabilitation are typical of any construction activity, but are mostly short-term and reversible. There are no significant long-term irreversible impacts resulting from the Project, especially if it is properly managed during the operation phase. 12. Overall, the results of the screening process identified that possible impacts are expected to be temporary and could be mitigated or reduced by implementing proper measures indicated in the environmental management plan throughout the Project cycle. Moreover, it identified that there would be no major impacts on water resources, ecological resources, or physical and cultural heritage sites along the alignment. 13. Potential impacts include emission of pollutants into the air, surface waters and soil, as well as changes in the acoustic environment, and generation of waste associated with both the rehabilitation activities and the operation of the rail line. This is mainly a concern in the areas with higher population densities. Further, contamination of water is a concern during the rehabilitation activities in case of accidental oil spills during implementation, particularly within the Chenab Canal area. Waste will