Sustainable Tourism Enhancement in Nepal's Protected Areas Public Disclosure Authorized Environmental and Social Management Framework Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized National Trust for Nature Conservation GPO Box 3712, Khumaltar, Lalitpur, Nepal May 2020 Executive Summary 1. Description of the Project: Tourism is one of the major contributors to the sustainable economy of Nepal. The direct contribution of the tourism sector in the national GDP was at 4% in 2017 and is forecasted to rise by 3.8% per annum to reach 4.2% in 2028 (World Travel and Tourism Council, 2018). Despite tremendous growth potential in tourism sector, Nepal stands as a low-cost tourist destination with much lower daily tourist spending than the regional average. This is a high time for Nepal to think about and harness high value nature-based tourism. Nature based tourism is a key driver of Nepal's tourism, providing the sector both comparative and competitive advantages in the unique setting of rich topographic, biological and cultural diversity. In this context, the World Bank is supporting GoN to implement the project entitled “Sustainable Tourism Enhancement in Nepal’s Protected Areas (STENPA)". Project Destinations: The project focuses on areas with Nature-Based Tourism (NBT) potential with the aim of piloting a sustainable tourism approach that can be replicated across Nepal’s protected areas (PAs). The project destinations include PA at their core, nearby gateway cities and surrounding areas with NBT potential, and has identified six PAs as the initial project destinations (Bardia, Banke Shukla Phanta and Rara National Parks, and their buffer zones; and Annapurna and Manaslu conservation Areas). Additional areas may be added as project destinations during implementation, subject to the selection criteria. The Project Development Objective (PDO) is to improve the sustainability, inclusiveness and value generation of nature-based tourism in selected destinations. The project has five components: Component 1: Improving destination management, planning and coordination, Component 2: Enhancing infrastructure for access, environmental management and tourism diversification, Component 3: Adapting tourism products and providing economic opportunities in tourism-related value chain, Component 4: Project management, monitoring and evaluation, and Component 5: Contingency emergency response (CERC). Under these components, the project will invest in variety of activities, which may be placed into three different group. Group I will include TA support to policy, regulations, plans and programs such as sustainable tourism development strategy for PAs, updating of PA Management Plans, landscape zonation development and DVIPs. Group II include activities to strengthen capacity and institutions such as improvements of ICTs, access to finance and training and awareness programs. Investment in physical infrastructures such as road upgrading works, construction of culverts and helipads, trekking trails fall under Group III. 2. Overview of ESMF: This ESMF has been developed as part of project preparation to ensure sustainable preservation of natural and cultural heritage and maintaining acceptable standards for avoiding/minimizing adverse impacts during the implementation of the project. ESMF provides clear steps, processes, procedures and responsibilities including various tools to be used during the project implementation ensuring environmental and social integration in the planning and implementation of the project supported activities. ESMF is prepared in line with the World Bank's environmental and i social Operation Policies and Government of Nepal's national laws and regulations. ESMF will be a ‘live document’, will be updated/revised, if needed during implementation, only in mutual agreement between the World Bank and the Government of Nepal. If Contingency Emergency Response Component (CERC)/Component 5 is activated, this ESMF may be updated or a specific CERC-ESMF may be prepared, as required, and disclosed. 3. Policies and Regulatory Requirements: ESMF assess the prevailing policy and legal framework of GoN and applicable World Bank’s Safeguards policies for the implementation of the project. The project triggers OP 4.01 Environment Assessment, OP 4.04 Natural Habitats, OP 4.36 Forestry, OP 4.11 Physical Cultural Resources, OP 4.12 Involuntary Resettlement, OP 4.10 Indigenous Peoples, and OP 4.20 Gender and Development. Gaps are identified between the relevant Nepalese laws and regulations, and the World Bank safeguard policies by comparing them; and recommendations are made to address the gaps in the context of the STENPA Project. 4. Potential Environmental and Social Impacts and Mitigation Measures: The project will not finance activities with potential significant adverse environmental or/ and social risks and/or impacts that are diverse, irreversible, or unprecedented (Annex 1 (a): Exclusion List of Project Activities). Nonetheless, moderate social and environmental impacts are likely from the physical infrastructure activities. Environmental and social impacts/ issues and risks may also arise from or linked to policy and plan that may be prepared through Technical Assistance (TA) under the project. The project is, hence, classified as “B Category” with possibility of limited/moderate adverse environmental and/or social impacts that are few in number, generally site-specific, largely reversible, and readily addressed through mitigation measures. The project, inter alia, finances environmental management and conservation activities including wildlife conservation, wildlife rescue center, wilderness enhancement and habitat management, sanitation and waste management, landslides/erosion protection, and watershed protection works, etc. These are expected to result in beneficial environmental impacts. In addition, the project aims to initiate and promote environment and nature-friendly practices in the physical infrastructure. The following negative environmental impacts, at moderate scale and limited to the vicinity of physical infrastructure, are expected from the investment in infrastructure. • Loss or degradation or disturbances to wildlife and wildlife habitats; • Loss of and/ or degradation of forest, trees, vegetation; • Over and/or illegal harvesting of wild plants, herbs, NTFPs, and fishes, birds, wildlife; • Increased human-wildlife conflict; • Loss of topsoil from land clearing, soil erosion, landslides and stream sedimentation; • Dust pollution, noise and other harmful emissions; • Pollution due to solid waste; wastewater and effluents; • Loss or degradation of good/fertile agricultural land; • Damage to other/existing infrastructures; • Degradation of aesthetic value and scenic value; ii • Land use change due to expansion of hotels and new settlements; • Degradation of physical cultural resources; and • Health and safety risks to workers, community and visitors. Similarly, possible adverse social impacts due to project intervention include: • Loss of land, shelter and land-based assets/infrastructures and livelihoods sources; • Damage/ disruption of community resources /local facilities; • Discrimination in works and wage payment; • Exclusion of indigenous peoples and vulnerable groups in decision making and planning; • Pressure on local resources (drinking water, forest products like fuel wood/ timber, etc.); • Local inflation of prices; • Obstruction and noise pollution to tourists/ trekkers during construction/ maintenance; • Loss of standing crops/orchards/trees; • Conflicts associated with construction work forces or conflict between locals and outsiders; • Increased social issues/problems; • Child labor, child safety and other labor issues; • Gender Based Violence (GBVs); • Issues related to chance finds or issues encountered during works on physical cultural resources; and • Increased burden on and competition for public service provision. This ESMF, which is developed in line of GoN and World Bank’s legal and policy framework, provides full guidance to address potential social and environmental issue/ risks/ impacts (to avoid, minimize, mitigate, and compensate adverse impacts; and enhance positive/ beneficial impacts). • All the policies and plans prepared under the project will be subjected to environmental and social overview analysis for mainstreaming environmental consideration. Such an overview analysis would be based on an issue scoping exercise involving stakeholder participation. • Each activities/proposal for strengthening capacity and institutions will be subjected to social and environmental review, and environmental and social best practices will be incorporated in the training plans and curriculums, E & S aspects will be mainstreamed/ strengthened in the proposal and/ or plan will be prepared, if needed. • Each Investment in physical infrastructure subproject/ activity will be subjected to standard E & S process and procedures including screening, environmental assessment (EA), social assessment (SA), preparation of environmental and social management plans (ESMP), RAP, etc. and monitoring during implementation. 5. Resettlement Policy Framework: The Resettlement Policy Framework (RPF) is developed as part of ESMF as a guiding tool to avoid, minimize and mitigate adverse impacts caused by involuntary resettlement. This policy covers direct economic and social impacts that both result from the Bank-assisted investment projects and are caused by the iii involuntary taking