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Housing for Integrated Rural Development Improvement Program

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Housing for Integrated Rural Development Improvement Program i Due Diligence Report on Environment and Social Safeguards Final Report June 2015 UZB: Housing for Integrated Rural Development Investment Program Prepared by: Project Implementation Unit under the Ministry of Economy for the Republic of Uzbekistan and The Asian Development Bank ii ABBREVIATIONS ADB Asian Development Bank DDR Due Diligence Review EIA Environmental Impact Assessment Housing for Integrated Rural Development HIRD Investment Program State committee for land resources, geodesy, SCLRGCSC cartography and state cadastre SCAC State committee of architecture and construction NPC Nature Protection Committee MAWR Ministry of Agriculture and Water Resources QQL Qishloq Qurilish Loyiha QQI Qishloq Qurilish Invest This Due Diligence Report on Environmental and Social Safeguards 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. 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. iii TABLE OF CONTENTS A. INTRODUCTION ........................................................................................................ 4 B. SUMMARY FINDINGS ............................................................................................... 4 C. SAFEGUARD STANDARDS ....................................................................................... 4 D. DUE DILIGENCE PROCESS ..................................................................................... 5 E. FINDINGS ................................................................................................................... 9 F. CONCLUSIONS AND RECOMMENDATIONS ....................................................... 10 4 A. INTRODUCTION 1. To mitigate risks associated with inappropriate land selection an independent review of the HIRD safeguard due diligence process was commissioned for HIRD 2014 new housing sites (massifs). While the review was initially planned to be undertaken on a sample basis, it was determined that a 100%due diligence review would improve implementation of HIRD safeguard requirements nationwide, strengthen capacity of participating technical agencies, and better ensure compliance. B. SUMMARY FINDINGS 2. Of the 316 massifs proposed and considered for HIRD 2014,to date 286 massifs were approved for new construction of HIRD 2014 rural houses. For each of the approved massifs, a safeguard due diligence review was undertaken and compliance with national and ADB environmental and social safeguard requirements confirmed. The safeguard review process was undertaken in close coordination with the PIU and relevant technical agencies to ensure timely briefing and immediate corrective action on all GOU and ADB safeguard issues. 3. The safeguard due diligence review encompassed: a. A review ofADB and GOU safeguards requirements. b. An initial screening of massifs based on information provided by GOU. c. Field assessment of environmental and social risks and land acquisition or resettlement issues. 4. A desk review was undertaken of land selection documentsand assessments and certificationsrequired from technical agencies for each of the 316 massifs. The documentation review was undertaken from 18 August 2014. 5. Site inspections were scheduled by region. Regional site inspections included a briefing on safeguard issues and ADB and GOU safeguards requirements for participating staff of regional and district local governments and technical agencies. Site inspections were undertaken starting 21 August 2014 to 13 September 2014, C. SAFEGUARD STANDARDS 6. ADB Safeguard Policy Statement. The safeguard review was conducted on the basis of policy guidance provided by the ADB Safeguard Policy Statement (SPS) (2009) under three key areas: environment, involuntary resettlement, and indigenous peoples. 7. For safeguard purposes,HIRD is classified as FI category C. HIRD land selection criteria as specified by Tranche 2 loan and project agreements were used as a basis for the safeguard review. Criteria applied are: a. The site of the house plot must be on land approved by the District Hokimiyat for residential use. b. The site of the house plot must be on land that was classified as reserved land by the local government or administered by state agencies not later than 31 December 2011 for Tranche 2. c. The activities financed under the mortgage will not cause involuntary resettlement or have an adverse effect on Indigenous People, including any adverse effect on any third party land user of site where the house plot is located. d. The site of the house plot must not be situated in or near an area that has been classified as an environmentally sensitive area by the Regional Nature Protection Committee or the State Committee for Geodesy and Mineral Resources. e. The site must have an environmental clearance from the Regional Nature Protection Committee. 5 f. ADB's prohibited investment activity list applies as appended to the Loan Agreement. 8. GOU Safeguards. The safeguard review was conducted based on government safeguards regulations implemented by mandated technical agencies and state committees.1 The safeguard review confirmed that the following assessments and certifications were completed: a. Soil, geology, hydrology, groundwater, and sanitation assessments as undertaken by regional and district branches of responsible technical agencies. b. Certification of infrastructure requirements, i.e.,access to water supply, gas and electricity networks, and fire safety arrangementsissued by district branches of relevant agencies. c. Environmental assessments asapproved by NPC, which includes: (i) confirmation by NPC that the proposed housing site isnot located in an environmetally sensitive area, (ii) an environmental impact proposal prepared by QQI, and (iii) an environmental impact assessment (EIA) carried out by the NPC regional department of the NPC. D. DUE DILIGENCE PROCESS 9. Scope of Work. The first list of proposed massifs was prepared in August - December 2013 to January-February 2014, and subject to numerous revision prior to being finalized in February 2014. Table 1 reflects the extensive changes made. Table 1: Summary of Amendments Made to the List of Housing Sites August – December 2013 January - February 2014 Reduced* Increased** New*** Reduced* Increased** New*** National 23 20 5 34 25 15 Karakalpakstan - 1 - - - 5 Andijan 3 1 - 4 2 - Bukhara - - 2 1 1 Djizak 1 1 1 - - 2 Kashkadarya 2 2 - - 1 Navoiy - - - - - - Namangan 3 1 1 7 1 2 Samarkand 5 5 - 8 9 - Surkhandarya 4 4 - 6 5 - Sirdarya 1 - - 2 1 1 Tashkent 2 2 1 3 3 2 Ferghana 2 3 2 1 3 - Khorezm - - - 1 - 1 * Sites with reduced number of massifs ** Sites with increased number of massifs *** Newly selected massifs 10. Desk Review. A two phased desk review was undertaken. Phase 1 comprised a review of (i) ADB Safeguard Policy Statement (SPS) (2009), and (ii) all relevant government legislation and regulations on national social and environmental safeguard requirements. 11. Regulation of Land Acquisition and Resettlement. In Uzbekistan all land acquisition and/or resettlement is subject to the following laws and regulations: 1Attachment 1: List of agencies and mandates involved in the GOU Safeguard process. 6 i. Law on “State Cadastre”, N171-II, December 2000. ii. Law on “State Land Cadastre”, N666-I, August 1998, amended 2002-2004. iii. Cabinet of Ministers Resolution on “Approval of the Regulation on the order of adjudication of land disputes in the Republic of Uzbekistan”, №246, May 1992. iv. Cabinet of Minister Resolution on “Order of realization into private property of objects of trade and public services together with land plots, where they are located, and land plots into life inherit tenure”, №126, April 1995, amended CoM Resolution № 202, April 1999. v. Cabinet of Ministers Resolution on “Land Acquisition and Compensation for State and public needs” № 97, May 2006 vi. Cabinet of Ministers Resolution on “Procedure for granting land for urban development and other non-agricultural activities”, № 146, May 2011. vii. Cabinet of Ministers Resolution on “Procedure for granting land for urban development and other non-agricultural activities”, № 54, February 2013 12. Regulation of Environmental Issues. In accordance with national environmental legislation2, an environmental assessment must be conducted for all types of construction activities. The scope of the environmental assessment is defined in the Appendix to the Resolution of CoM No.491, dated 31.12.2001. Based on this Resolution, HIRD rural house construction activity is categorized as Class 4, having a low environmental impact.3 As a Class 4 activity,4 an environmental impact statement (EIS) must be prepared, and environmental clearance for each massif obtained from the regional NPC, prior to commencing construction works. During construction, the district NPC is required to monitor compliance with national legislation. Applicable environmental laws include: i. Law on Nature Protection, 09.12.1992 ii. Law on Water and Water Use, 06.05.1993. iii. Law on Atmosphere Air Protection, 27.12.1996 iv. Law on Flora Protection and Management, 26.12.1997. v. Law on Wildlife Protection and Management. 26.12.1997. vi. Law on Forest, 15.04.1999. vii. Law on Mineral Resources, 23.09.1994.
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