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Initial Environmental Examination Infrastructure Development Investment Program for Tourism (RRP IND 40648) Initial Environmental Examination Document Stage: Draft for Consultation Project Number: P40648 July 2010 IND: Infrastructure Development Investment Program for Tourism—Punjab Sikh Heritage Route Subproject Prepared by the Government of Punjab This IEE 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. ABBREVIATIONS ADB – Asian Development Bank BOD – Biological Oxygen Demand BPL – Below Poverty Line EAC – Expert Appraisal Committee EIA – Environmental Impact Assessment IEE – Initial environmental examination KCR – Keshopur Chhamb Community Reserve MCA – Municipal Corporation of Amritsar MOEF – Ministry of Environment and Forests NGO – Nongovernmental Organization PIU – Project Implementation Unit PMU – Project Management Unit RPM – Respirable Particulate Matter SEAC – State Expert Appraisal Committee SPM – Suspended Particulate Matter SPS – Safeguards Policy Statement TDS Total Dissolved Solids TSS – Total Suspended Solids TABLE OF CONTENTS EXECUTIVE SUMMARY 1 I. INTRODUCTION 2 A. Background 2 B. Purpose of the IEE 3 C. Environmental Regulatory Compliance 3 D. Report Structure 5 II. DESCRIPTION OF PROJECT COMPONENTS 5 A. Sikh Heritage Route 5 B. Subproject Proposals 7 III. DESCRIPTION OF ENVIRONMENT 9 A. Environmental Profile 9 IV. ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES 16 A. Land Acquisition and Resettlement 16 B. Environmental Impacts 16 V. INSTITUTIONAL REQUIREMENTS 33 A. Institutional Arrangements 33 B. Environmental Monitoring Plan 35 C. Capacity Building 37 D. Environmental Budget 38 VI. PUBLIC CONSULTATION AND INFORMATION DISCLOSURE 39 A. Process for Consultation Followed 39 B. Plan for Continued Public Participation 41 VII. FINDINGS & RECOMMENDATIONS 41 VIII. CONCLUSIONS 42 APPENDIXES 1. Rapid Environmental Assessment (REA) Checklist 2. Description of Subproject Elements 3. Consultations and Site Visits 4. Contract Clauses to be integrated into Bid Documents 5. Table of Organization 6. Environmental Management Plan 1 EXECUTIVE SUMMARY 1. The India Infrastructure Development Investment Program for Tourism (IDIPT) envisages an environmentally and culturally sustainable and socially inclusive tourism development, in the project states of Himachal Pradesh, Punjab, Tamil Nadu and Uttarakhand, delivered through a multi-tranche financing facility (MFF) modality. Loan 1 (first tranche) includes the states of Himachal Pradesh and Punjab. 2. This Initial Environmental Examination (IEE) assesses Loan 1 (first tranche) subprojects for the state of Punjab forming part of the Sikh heritage route cluster destination, located in the western part of the state. The proposed Sikh Heritage Route subproject components involve various interventions in and around the natural and cultural heritage destinations. Subprojects will provide needed environmental infrastructure to improve the environmental management and quality of the sites towards preserving their ecological and cultural integrity. 3. The selection of components are line with the subproject selection criteria outlined in the Environmental Assessment and Review Framework (EARF) aimed at enhancing protection of these sites and enhancing their environmental quality. Subprojects are consistent with defined management plans designed to protect environmentally sensitive and cultural locations. Management plans guided subproject design and location, therefore, all proposed facilities in natural areas are located outside sensitive areas and sited in designated "sustainable use zones" (as per the Keshopur wetland management plan,1 see section 4.11) located away from sensitive habitats. The project design incorporates the views of primary and secondary stakeholders including local communities, local officials, and NGOs (local and international – e.g., WWF, IUCN) who were all meaningfully consulted during IEE and project preparation. The subproject will conform to all government regulations, policies, and standards, as well as ADB's Safeguard Policy Statement (2009). The Project includes additional environmental awareness building to raise conservation values consistent with management plans and state environmental and Punjab's State Eco-Tourism Policy amongst local communities and local governments in order to ensure future sustainable development in and around these locations. 4. The environmental impacts of the project are therefore not significant and at a Category B level as per ADB's Safeguards Policy Statement. The specific measures stated in the Environmental Management Plan (EMP) will address all adverse environmental impacts due to the subproject. Impacts are readily mitigated through careful siting, specific selection criteria for procuring contractors with demonstrated experience, execution of proven mitigation measures during the design, and the adoption of good engineering practices during construction and implementation. A detailed monitoring plan prepared as part of this IEE will further mitigate negative environmental impacts during implementation. 5. Potential induced impacts are addressed through the following: (i) awareness building of local management plans at proposed sites specifically addressing the need to regulate tourism related development and planning in the area through coordination with related government departments and local land use committees; and (ii) project supported environmental awareness campaigns in surrounding communities to encourage sustainable development consistent with eco-tourism principles and in compliance with the State's Eco-Tourism Policy (2009). Moreover, to further regulate future development in the project areas, central government policies require automatic environmental impact assessment (EIA) of development 1 The Keshopur Wetland Management Plan (2009-2015) was prepared by Wildlife Institute of India. 2 activities (≥20,000 sq.mtrs and <150,000 sq.mtrs. of built-up area) within 10km of notified protected areas. 6. The project includes upfront and ongoing supervision and training assistance for environmental monitoring reporting in project management structures. The effective implementation of the measures proposed will be ensured through the building up of capacity towards environmental management within the project management unit (PMU) supplemented with the technical expertise of a Safeguards Specialist as part of the design and supervision consultants (DSC). Further, the environmental monitoring plans provide adequate opportunities to address any residual impacts during construction or operation stages. I. INTRODUCTION A. Background 7. The first tranche includes the states of Himachal Pradesh and Punjab. The expected Impact of the Project in the four states is sustainable and inclusive tourism development in priority State tourism sub circuits divided into marketable cluster destinations that exhibit enhanced protection and management of key natural and cultural heritage tourism sites, improved market connectivity, enhanced destination and site environment and tourist support infrastructure, and enhanced capacities for sustainable destination and site development with extensive participation by the private sector and local communities. The Project will contribute to the accomplishment of the following outcome in the four states: (i) improvement of institutional capacity that will ensure smooth project implementation and coordinated efforts of multiple agencies, (ii) promote environmentally and culturally sustainable and socially inclusive tourism development, and encourage private sector and community participation in tourism; (iii) enhanced protection and management of natural and cultural tourism assets; and (iv) integrated development of high-priority tourism infrastructure in high-potential tourism circuits and their related cluster destinations, resulting in enhanced connectivity and improved environment, utilities, and tourist services. 8. The MFF has been designed as a Sector Loan as (i) the destination clusters within the priority State-wide tourism circuit have similar features and needs; (ii) the tourism infrastructure interventions comprise many small-scale, site-specific components; (iii) there is a need for flexibility in the design approach; (iv) the respective State Governments have sound tourism policies and are in the process of updating and strengthening their institutional arrangements and seeking to strengthen their institutional capacity as part of the implementation of this proposed Project; and (v) workable sector road maps and investment plans outlining the overall sector needs are present. The MFF design has been developed around sample cluster subprojects in each state which has been selected from the set of cluster destinations and from the long list of tourism infrastructure investment proposed by the states. An EARF was prepared to guide environmental assessment in future subprojects to be developed under the MFF. 9. This document assesses Loan 1 (first tranche) subprojects forming a part of the Sikh heritage route cluster destination, located in the western part of the state. This cluster is based on a Sikh cultural heritage and natural market theme. It is centered on Amritsar and Gurdaspur, with Amritsar as the main gateway, and key attractions comprising Amritsar heritage sites (Gobindgarh Fort), and pilgrimage and natural heritage sites in Gurdaspur including Dera Baba Nanak, Quadian,
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