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(PRIDE) Project Bangladesh Economic Zones Authority (BEZA) Public Disclosure Authorized Private Investment and Digital Entrepreneurship (PRIDE) Project Bangladesh Economic Zones Authority (BEZA) Public Disclosure Authorized Environmental and Social Assessment (ESA) Package No. BEZA S-135 Public Disclosure Authorized Public Disclosure Authorized Final Report Public Disclosure Authorized Main ESA Report January 2020 Environmental and Social Assessment (ESA) EXECUTIVE SUMMARY Introduction The Government of Bangladesh (GOB) plans to create 100 economic zones all over the country in the next decade using a wide variety of arrangements. Bangabandhu Sheikh Mujib Shilpanagar (BSMSN) will be one of the largest of this kind to be set up on 30,000 acre of land located in Mirsharai, Sonagazi and Sitakunda Upazilla of Chattogram and Feni Districts. A master plan of BSMSN has been prepared under the current PSDS project financed by the World Bank. The World Bank’s Private Investment & Digital Entrepreneurship (PRIDE) project would support phased development of BSMSN. The project would support further development of zone 2A and 2B and development of a third piece of land by an international Master Developer, all within the proposed BSMSN. The project aims to promote private investment and job creation in economic zones and digital entrepreneurship in hi-tech parks. The project will spearhead the adoption and mainstreaming of green industrial park concepts in the implementation and development of economic zones in Bangladesh. The project has four components. The first three components will be implemented by BEZA and the fourth component will be implemented by BHTPA. Under the current PSDS project, economic zone 2A and 2B at Mirsharai, Chattogram are being developed. PRIDE would provide support construction of some basic infrastructure (such as internal road network, water supply, sewer and storm drainage system etc.) and construction of some common and shared facilities (such as central waste water treatment plant, landfill for solid waste management, desalination plant, solar energy, biogas plant etc.). It would also support some infrastructure in the international master developer area and some last mile infrastructure to ensure accessibility and utility services in the economic zones. The components to be implemented by BEZA are as follows: Component 1: Creating an enabling environment for private investment, sustainability & jobs: The first component will finance technical assistance, goods and training to inform and implement institutional, regulatory and administrative reforms. It will strengthen BEZA’s core competence in technical functions that would allow it to be a more effective partner to leading private investors; and embed resilience and sustainability concepts into its development of infrastructure and associated services. Component 2: Developing a greener and resilient BSMSN: This component will support phased development of the BSMSN Green Industrial City based on the recently approved Master Plan for BSMSN. It will finance works, goods and technical assistance for three areas—BSMSN-2A (380 ha), BSMSN-2B (192 ha) and BSMSN-IMD (100-200 ha)—to help catalyze the development of state-of-the-art green economic zones and set an example for sustainable, resilient and environmentally sound industrial development in Bangladesh. Component 3: Creating a dynamic private market for serviced industrial land: The third component will seek to catalyse the creation of a dynamic private market for serviced industrial land. This component will support strengthening of institutional capacity and compliance mechanisms and capital grant funding to crowd in private investment. i Final Report Environmental and Social Assessment (ESA) Component 4: Strengthening the digital entrepreneurship and innovation eco systems: The fourth component will be implemented by BHTPA. It aims to strengthen the foundation of the digital entrepreneurship and innovation ecosystem in Bangladesh. It will create the country’s largest agglomeration of IT and ITeS SMEs in Dhaka’s Janata STP and promote digital entrepreneurship more broadly among young professionals and women. It will design and implement a program that supports digital entrepreneurship at three levels. This component has not been covered in this ESA. Separate site specific ESIA has been developed for Janata STP and an ESMF has been prepared for other sub-components by BHTPA. Purpose and Objective of the ESA The objectives of the assessment are to: a) prepare an Environmental and Social Assessment (ESA) report by updating the existing EIA and SIA reports prepared for zone 2A and 2B under PSDSP to i) identify, evaluate and manage the environmental and social risks and impacts of the project in a manner consistent with the ESSs; ii) adopt a mitigation hierarchy approach to the project’s E&S risks; iii) help identify differentiated impacts on the disadvantaged or vulnerable and to identify differentiated measures to mitigate such impacts, wherever applicable; b) develop a Stakeholder Engagement Plan (SEP) for BEZA Component and activities; c) develop a Labour Management Procedures (LMP) for BEZA which will set out the way in which project workers will be managed, in accordance with the requirements of national law and ESF of the WB; d) provide key recommendations and inputs to the Environmental and Social Commitment Plan (ESCP) for BEZA; e) carry out an assessment of Institutional Capacity of BEZA to manage Environmental and social issues; f) conduct a review of appropriate country laws and requirements to address the Environmental and Social risks and impacts. Legal and Regulatory Compliance Consideration The proposed PRIDE Project will be implemented in compliance with applicable environmental and social laws and regulations of the Government of Bangladesh (GoB). Relevant environmental and social regulations of GoB and World Bank have been reviewed and compared which was the basis of risk categorization of the project and assessment and management of environmental and social risks. The project consists of a number of infrastructures which fall under Red Category as per GoB rules. Given the project’s nature and scale, potential environmental and social risk and impacts, the capacity of the implementing agency to manage, implement and monitor the ESMP and the project context, the project has been categorized as “High Risk”. Project Description Project Location: The Zone 2A & 2B is situated in Mirsharai and Sonagazi Upazilas of Chattogram district near Abu Torab Village adjacent to Mirsharai EZ-I. Site is located at west site of BWDB embankment. Site is at 12 Km west of the national Highway (Dhaka-Chattogram Highway) with Chattogram City 60 Km south of this location. Mirsharai Railway station is about 10.0 km away from the site in the Eastern direction of the site. The Shah Amanat International Airport at Chattogram is ii Final Report Environmental and Social Assessment (ESA) located in the Southern direction at a distance of approximately 79 Km, and, the seaport at Chattogram is 67 Km south of the site. Sluice gate of River Feni is approximately 9 km from the site in West/NW direction. A rivulet from river Feni just abuts the western boundary of the site at one location. Influence Area of Zone 2A & 2B: Although the project area for this ESA study is confined in zone 2A & 2B, BSMSN will have significant environmental and social impacts in the adjoining areas. For 2A & 2B, a 10 km buffer zone area around the EZ site has been considered as the project influence area. Some of the impacts such as social issues might cover even bigger geographical area. The overall socio- economic benefits will reach out to other parts of the country as labourers will be coming to BSMSN from across the country. Interventions considered for this ESA under PRIDE: Among the four main components of the PRIDE project, the World Bank will support BEZA in the execution of the several sub-projects which have been described briefly in section 3.5 and Table 3-2 of ESA main report. A clear separation has been made among the sub-projects which are covered under this ESA and which are covered under ESMF. The following sub-projects have been considered for this ESA report: Sub-project A.1: Construction of arterial and non-arterial roads, footpath and plot entry culvert. Sub-project A.2: Construction of integrated stormwater management network Sub-project A.3: Water supply network Sub-project A.4: Site upgradation Sub-project A.5: Construction of telecommunication network Sub-project A.6: Construction of some key public buildings and facilities Sub-project A.7: Construction of Internal Power Distribution Network Sub-project B.1: Construction of a Common effluent treatment plant (CETP) Sub-project B.5: Development of a landfill site for solid waste generated Sub-project B.6: Construction of a biogas plant Environmental and Social Baseline Physical Environment Climate: The project area lies in the South-Eastern climate zone of the country and shows three main seasons. The Southwest Monsoon lasts from May to October with a 90% of the annual rainfall occurs during this period and relative humidity is high. The Northeast Monsoon lasts from November to March. The hottest season extend from about late March to May. The highest daily temperatures generally occur currently, and Flash floods often occur from the rivers entering the eastern part of the region from the Tripura Hills. Ambient Air Quality: From the analysis it is observed that the concentration of all the parameters are below the allowable limit as per DoE standard (Bangladesh) at Moghadia Nurul Absar Chowdhury High School and Near Bamon Sundar Khal. In case of 2A & 2B zones, SPM, PM10 and PM2.5 values are above the DoE standard because of some ongoing construction activities. Water Resources: Major water body adjacent to section 2A & 2B are Feni River, Ichakhali khal, Daborkhali khal and Bamon Sundar khal. Project site lies in the flood plain of Feni River. Ichakhali khal passes within the project area (Zone 2A and Zone 2B). A shallow aquifer of about 20-50m thickness exists near the surface. Main aquifer is deep seated whose nature and extent are not known.
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