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TNUIFSL Would Finance the Following Categories of Urban Infrastructure Projects

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TNUIFSL Would Finance the Following Categories of Urban Infrastructure Projects E1130 v2 Environmental and Resettlement Framework (ERF) Tamil Nadu Urban Infrastructure Financial Services Public Disclosure Authorized (TNUIFSL) Public Disclosure Authorized Draft - December 2004 Public Disclosure Authorized Prepared by Public Disclosure Authorized Tamil Nadu Urban Infrastructure Financial Services, Chennai In association with TNUIFSL –ERF /Draft/ December 2004 i Wilbur Smith Associates Private Limited Chennai TNUIFSL –ERF /Draft/ December 2004 ii CONTENTS LIST OF APPENDICES ii …………………………………………………………………. LIST OF TABLES ………………………………………………………………………… iii ABBREVIATIONS……………………………………………………… iv ………………… EXECUTIVE SUMMARY I ………………………………………………………………… PART I : TNUIFSL’S POLICY STATEMENT 1 PART II SECTION 1 ENVIRONMENTAL AND SOCIAL ISSUES 1 ……………………………. Typical Municipal Infrastructure 1 Projects………………………………………… Environmental and Social 4 Issues……………………………………………….….. Water Supply and 4 Sewerage………………………………………………………. Solid Waste 5 Management………………………………………………………….. Transportation……………………………………………………… 5 ……………….. Commercial 7 Complexes…………………………………………………………….. Non-Commercial / Community 7 Amenities………………………………………… Integrated Area 7 Development……………………………………………………… Categorisation of Urban Infrastructure 8 Projects………………………………… Environmental Categories 8 …………………………………………………………. Social Categorisation of Projects 1 …………………………………………………. 1 SECTION 2 NATIONAL & STATE POLICY AND REGULATORY 13 FRAMEWORK. Regulatory Framework – Urban Infrastructure Projects 1 ………………………. 3 TNUIFSL –ERF /Draft/ December 2004 i Constitutional Provisions 1 …………………………………………………………… 3 Tamil Nadu Town and Country Planning Act, 1971 1 …………………………….. 3 Tamil Nadu Municipalities Law and Building By Laws 1 ………………………….. 4 Development Control Rules for Madras Metropolitan Area 1 ……………………. 4 Regulatory Framework – Environment 1 …………………………………………… 5 Constitutional Guarantees 1 …………………………………………………………. 5 Laws and Acts 1 ………………………………………………………………………. 5 Rules and Regulations 1 ……………………………………………………………... 7 Operational Policies and Directives of The World Bank 1 ………………………... 8 Competent Regulatory Agencies 1 ………………………………………………….. 9 Regulatory Framework - Social 2 ………………………………………………….… 4 Mandatory 2 …………………………………………………………………….……... 4 The World Bank OP 4.12 2 ………………………………………………………….. 5 TNUIFSL’s Entitlement Framework 2 ………………………………………………. 6 Implications to TNUIFSL 3 …………………………………………………………….. 0 Municipalities as Borrowers and Regulators 3 …………………………………….. 0 Consumer Protection 3 ……………………………………………………………….. 0 Environment 3 ……………………………………………………………………….… 0 Social 3 ……………………………………………………………………………… 0 … SECTION 3 TNUIFSL’s ENVIRONMENTAL AND SOCIAL ASSESSMENT 3 FRAMEWORK 1 …………………………………………………………….. TNUIFSL’s Project Preparation & Appraisal Process 3 ………………………….. 1 TNUIFSL –ERF /Draft/ December 2004 ii Project Screening 3 ……….………………………………………………………….. 2 Project Appraisal 3 ………..…………………………………………………………... 3 Loan Sanction & Disbursement 3 …………………………………………………… 4 Project Monitoring, Audit and Recovery 3 ………………………………………….. 7 Environmental and Social Assessment and Management 3 Framework……… 7 Environmental and Social Risk Management 4 Framework……………………... 0 Risk Management Plan 4 …………………………………………………………….. 0 Risk Appraisal 4 ……………………………………………………………………….. 0 Risk Allocation / Translation 4 ……………………………………………………….. 1 Risk Monitoring and Preparedness 4 ……………………………………………….. 1 SECTION 4 ORGANISATIONAL SUPPORT STRUCTURE………………………… 43 Organisational Structure 43 …………………………………………………………… Responsibility Allocation Framework 43 ……………………………………………... Advisors for Environmental and Social Issues 44 …………………………………... Capacity Building 44 ………………………………………………………………….… LIST OF APPENDICES Appendix 1 List of Municipalities in Tamil Nadu – Region Wise & District Wise Appendix 2 Location of Municipalities Appendix 3 Terms of Reference to Carry out Environmental Assessment Studies for Category 1 Projects Appendix 4 Generic Environmental Guidelines / Management Plan for Category II Projects Appendix 5 74th Amendment of Constitution Appendix 6 Salient Features of the Madras District Municipalities Act, 1920 Appendix 7 Social Impact and Entitlement Framework TNUIFSL –ERF /Draft/ December 2004 iii Appendix 8 Terms of Reference for Environmental and Resettlement Manager Appendix 9 Terms of Reference for Environmental and Social / R&R Capacity Building Consultants Appendix 10 Terms of Reference for Environmental and Social Advisors Appendix 11 Terms of Reference for Environmental and Social Audit of Projects Appendix 12 Contractual Text to be included in PMC Consultancies Appendix 13 Organisation Chart of TNUIFSL TNUIFSL –ERF /Draft/ December 2004 iv LIST OF TABLES Table 1.1 Profile of Typical TNUIFSL Projects ……………………………………… 2 Table 1.2 Environmental Categorisation of Projects …………………………………. 8 Table 1.3 List of Sensitive Environmental Components 1 ……………………………... 0 Table 1.4 Potential Environment Enhancement Opportunities in TNUIFSL Sub 1 Projects 1 ……………………………………………………………………….. Table 1.5 Categorisation of Projects based on Social Sensitivity 1 …………………… 2 Table 2.1 Environmental Laws and Regulations Applicable for TNUIFSL Projects 2 and their Obligation ……………………………………………………………. 0 Table 2.2 Social Impact and Entitlement Framework 2 ………………………………… 7 Table 3.1 TNUIFSL’s Project Appraisal Process 3 ……………………………………... 5 Table 3.2 Environmental and Social Assessment Management Framework 38 ……… Table 3.3 Environmental and Social Risk Management Framework 4 ……………….. 2 Table 3.4 Risk Allocation Framework for TNUIFSL Projects 4 ………………………... 2 Table 4.1 Generic Training Program 4 …………………………………………………… 6 TNUIFSL –ERF /Draft/ December 2004 v ACRONYMS AMC Asset Management Company BP Bank Procedures MD &CEO Managing Director & Chief Executive Officer CPR Common Property Resource CRZ Coastal Regulation Zone DPR Detailed Project Report EAR Environmental Assessment Report EIA Environmental Impact Assessment ESAR Environmental and Social Assessment Report ESR Environmental and Social Report ERF Environmental and Resettlement Framework E& R Environmental and Resettlement Manager FI Financial Institution GF Grant Fund GOI Government Of India GoTN Government of Tamil Nadu HDFC Housing Development Finance Corporation HH Household ICICI Industrial Credit and Investment Corporation of India Limited IDA International Development Agency IL&FS Infrastructure Leasing and Financial Services Limited ISR Initial Screening Report MoEF Ministry of Environment and Forest MRTS Mass Rapid Transport System MUDF Municipal Urban Development Fund NGO Non Governmental Organization OD Operational Directives OP Operational Policies PAP Project Affected Person PMG Project Management Group PMU Project Management Unit RMP Risk Management Plan R&R Resettlement and Rehabilitation SAR Social Assessment Report SEC Sensitive Environmental Components TC Trustee Company TNPCB Tamil Nadu Pollution Control Board TNSCB Tamil Nadu Slum Clearance Board TNUDF Tamil Nadu Urban Development Fund TNUDP Tamil Nadu Urban Development Project TNUIFSL Tamil Nadu Urban Infrastructure Financial Services Limited TOR Terms of Reference TRAMP Traffic and Transport Program ULB Urban Local Body WB World Bank BP Bank Procedures RP Resettlement Plan TNUIFSL –ERF /Draft/ December 2004 vi EXECUTIVE SUMMARY BACKGROUND 1. The Tamil Nadu Urban Infrastructure Financial Services Limited (TNUIFSL) has been set up to manage a Trust fund ----Tamil Nadu Urban Development Fund (TNUDF). The trust has been established to manage urban infrastructure projects in Tamil Nadu. The deployment of funds will be on the basis of a management contract and will be managed by TNUIFSL. Eligible borrowers include Urban Local Bodies (ULBs), Statutory Boards, Public Undertakings and potential Private Investors. TNUIFSL has implemented projects by applying the Environmental and Social Report (ESR). Based on the experience it is found that the ESR requires updating and revision. There have been some additions to the laws on environment and on social policies, since the ESR was originally drafted. These have necessitated the review of the ESR to make it in line with the current practices. 2. The fund has a corporate Trustee Company (TC) with shareholdings from Government of Tamil Nadu (GoTN) and three leading Financial Institutions - ICICI (Industrial Credit and Investment Corporation of India), HDFC (Housing Development and Financial Corporation) and IL&FS (Infrastructure Leasing and Financial Services Limited). To fund project development activities, a new Grant Fund (GF) has been established. 3. TNUDF will channel increased financial resources, including private financing, into high priority infrastructure investments. Specifically the fund would: ❏ fund viable urban infrastructure projects; ❏ mobilise resources from capital markets; ❏ facilitate participation of private sector in infrastructure development through direct investment and joint delivery mechanism of infrastructure services; ❏ would earn returns for contributors and ensure sustainability of the fund; ❏ improve financial management of ULBs, enabling them to access debt finance from markets 4. The projects financed would: ❏ ensure that investments are commensurate with service demands; ❏ earn stipulated economic and financial returns; ❏ be institutionally viable so that the borrowers are capable of implementing the management arrangements to do so ; ❏ ensure that no adverse environmental and social impacts take place or that the borrower will be taking measures to avoid or minimise such impacts in consonance with the Environment and Resettlement Framework (ERF - Originally
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