Technical Assistance Consultant’s Report
Project Number: 38426-012 August 2011
NEPAL: Decentralized Rural Infrastructure and Livelihoods Project II (Financed by the Japan Fund for Poverty Reduction)
Prepared by ANZDEC Limited in association with Consolidated Management Services Nepal (P) Ltd.
For the Ministry of Local Development and the Department of Local Infrastructure Development and Agricultural Roads
This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents. (For project preparatory technical assistance: All the views expressed herein may not be incorporated into the proposed project’s design.
Decentralized Rural Infrastructure and Livelihoods Project II (DRILP II) (ADB TA No. 7573-NEP)
FINAL REPORT - Report and Recommendation of the President (RRP)
Prepared for the Asian Development Bank and Government of Nepal
ANZDEC Limited in association with Consolidated Management Services Nepal (P) Ltd. August 2011
CURRENCY EQUIVALENTS 15 June 2011
Currency Unit – Nepalese Rupee (NRs)
NRs 1.00 = $0.01373 $1.00 = NRs 70.4782
ABBREVIATIONS
ADB Asian Development Bank ADF Asian Development Fund AP Affected People B/C Hill Brahmans and Chhetris AFS Audited Financial Statement BG Building Group CBO Community Building Organization CDC Compensation Determination Committee CDO Chief District Officer CQS Consultant Qualification Selection CISC Central Implementation Support Consultant DAG Disadvantaged Group DD Detailed Design DDC District Development Committee DDCFAMP District Development Committee Financial and Management Package DDF District Development Fund DE Divisional Engineer DIFD Department for International Development DISC District Implementation Support Consultant DIST District Implementation Support Team DMF Design and Monitoring Framework DMS Detailed Measuring Survey DOLIDAR Department of Local Infrastructure Development and Agricultural Roads DP Displaced Person DPCC District Project Coordination Committee DPO District Project Officer DRCC District Road Coordination Committee DRILP Decentralized Rural Infrastructure and Livelihoods Project DRR Cambodian Department of Roads DRSP District Roads Support Project DTCO District Treasury Comptroller DTMP District Transport Master Plan DTO District Technical Officer EA Executing Agency EARF Environmental Assessment and Review Framework EIA Environmental Impact Assessment EM Entitlement Matrix EMP Environmental Management Plan ADB PPTA Decentralized Rural Infrastructure and Livelihoods Project II 3 Final Report – RRP
ESMS Environmental and Social Management System FCGO Financial Comptroller General‟s Office FEDO Feminist Dalit Organization FGD Focus Group Discussion GACAP Government and Anticorruption Action Plan GDP Gross Domestic Product GESI Gender Equality and Social Inclusion GON Government of Nepal GRC Grievances Redress Committee GRSC Grievance Redress Sub-Committee GSEA Gender and Social Exclusion Assessment GTZ Gesellschaft für Technische Zusammenarbeit HH Household IA Implementing Agency ICB International Competitive Bidding IEC Information Education and Communication IEE Initial Environmental Examination IGA Income Generating Activities ILO International Labor Organization INR Indian Rupees IOL Inventory of Losses IPP Indigenous People Plan IPPF Indigenous People Planning Framework IPSA Initial Poverty and Social Assessment JICA Japan International Cooperation Agency LAR Land Acquisition and Resettlement LBAT Labor Based Appropriate Technology LBES Labor Based Equipment Supported (Road Building Approach) LEP Labor Based, Environmentally Friendly, and Participatory LGED Local Government Engineering Department LIBOR London Interbank Offered Rate LRO Land Revenue Office MLD Ministry of Local Development MOF Ministry of Finance MOU Memorandum of Understanding NCB National Competitive Building NFIN Nepal Federation of Indigenous Nationalities NGO Non-Governmental Organization NNGO National Non-Governmental Organization NPC National Planning Committee NRB Nepal Rastra Bank NRs Nepali Rupees OAG Office of the Auditor General PAF Project Affected Families
ADB PPTA Decentralized Rural Infrastructure and Livelihoods Project II 4 Final Report – RRP
PAI Project Administration Instructions PAM Project Administration Manual PC Project Coordinator PCU Project Coordination Unit PICC Project Implementation Coordination Committee PM Project Manager POA Plan of Action PPA Public Procurement Act PPE Personal Protection Equipment PRI Panchayati Raj Institution PWD Public Works Department QBS Quality Based Selection QCBS Quality and Cost Based Selection RAIDP Road Access Improvement and Decentralization Project RAP Rural Access Project RBG Road Building Group RBIC Road Building Implementation Committee RBN Road Board of Nepal RF Resettlement Framework RMUC Road Maintenance User Committee ROW Right of Way RP Resettlement Plan RRP Report and Recommendation of the President to the Board RRRSDP Rural Reconstruction and Rehabilitation Sector Development Program RTI Rural Transport Infrastructure RUC Road User Committee SAP Social Action Plan SBD Standard Bidding Documents SCC Saving and Credit Cooperative SCI Supplementary Community Infrastructure SDC Swiss Agency for Development and Cooperation SGIA Second Generation Imprest Accounts SIS Supplementary Investment Schemes SMC Social Mobilization Coordinator SOE Statement of Expenditure SOI Statement of Intent SP Service Provider SPAF Severely Project Affected Families SPRSS Summary Poverty Reduction and Social Strategy SPS Safeguard Policy Statement SRN Strategic Road Network SWAp Sector Wide Approach TA Technical Assistance TIP Training Implementation Plan 4 ADB PPTA Decentralized Rural Infrastructure and Livelihoods Project II 5 Final Report – RRP
TL Team Leader TOR Terms of Reference TSA Treasury Single Account TSAR Technical Specifications for Agricultural and Rural Roads UC Users Committee UNICEF United Nations Children‟s Fund VDC Village Development Committee VG Vulnerable Group VIUG Village Infrastructure User Group VTS Vocational Training Specialist VWRCC Village Works Road Construction Committee WB World Bank WFP World Food Program ZOI Zone of Influence
WEIGHTS AND MEASURES
km – kilometer sq km – square kilometer kg – kilogram ha – hectare cu m – cubic meter sq m – square meter kph – kilometers per hour
GLOSSARY
District – Basic unit of local government in Nepal (there are 75 districts in the country) Length Person – System of road maintenance wherein tasks are allocated in lengths of road per maintenance worker Building Groups – A group of members selected from the poorest households and endorsed by community gatherings organized at strategic locations of road alignments. Need – Process for determining and addressing needs, or gaps between Assessment current conditions and desired conditions, often used for improvement projects. It is different from trouble shooting and fault isolation/diagnosis (Kaufman & Gavora, 1989). Need Analysis – Identification of reasons for, and causes of, needs; and possible ways and means to meet the needs and thus resolve the problems.
NOTE
In this report, "$" refers to US dollars.
Decentralized Rural Infrastructure and
Livelihood Project II (DRILP II) ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II vii Final Report – RRP
CONTENTS Page I. Introduction 1 II. The Project 1 A. Rationale 1 B. Impact and Outcome 4 C. Outputs 4 D. Investment and Financing Plans 7 E. Implementation Arrangements 8 III. Due diligence 9 A. Technical 9 B. Economic and Financial 10 C. Governance 11 D. Poverty and Social 11 E. Safeguards 11 F. Risks and Mitigating Measures 12 IV. ASSURANCES 13 APPENDIX 1: DESIGN AND MONITORING FRAMEWORK 14 APPENDIX 2. LINKED DOCUMENTS 17 1. Sector Assessment 2. Project Administration Manual 3. Development Coordination 4. Economic and Financial Analysis 5. Summary Poverty Reduction and Social Strategy 6. Gender Action Plan 7. Environmental Assessment and Review Framework 8. Initial Environmental Examination 9. Resettlement Framework 10. Indigenous Peoples Planning Framework 11. Risk Assessment and Risk Management Plan 12. Indicative List of DRILP II Road Subprojects
Supplementary Documents A. Engineering (full report) B. Environment (field visit report) C. Vocational Training D. Rural Transport Services E. Rural Finance F. Financial Management and Procurement G. Detailed and Summary Cost Tables H. Detailed Economic Analysis I. Photo Gallery (available in electronic version) TA No. 7573-NEP - Decentralized Rural Infrastructure and Livelihoods Project II Knowledge Summary
Nepal is one of the poorest and least developed countries in the world, ranked 145th out of 179 countries in terms of the human development index estimated by the UN Human Development Report 2008. The Nepalese economy is mainly agrarian with the growing secondary and tertiary sectors. Nepal is characterized by severe rural poverty which may, by large, be attributed to the lack of accessibility to infrastructure. The more distant the districts are from the center and the more mountainous, the less access people have to the opportunities to enhance their livelihood, which leads to particularly high poverty in hilly and mountainous rural areas. The lack of physical access is compounded by the inadequate extent and distribution of economic and social activities (e.g., markets, schools, health facilities, water supplies), and the low quality of service that they provide. It inhibits effective delivery of better quality services by public and private sectors. Without adequate rural infrastructure farmers are constrained in their ability to invest in functioning on-farm value addition facilities and access markets. Improvement of rural infrastructure is a key focal area of Government policy and is also being addressed by a number of donor projects. During the past three decades, the Government has made considerable progress in linking important geographical and socio- economic areas of Nepal by road infrastructure, aided by suitable policies, legislative enactments and guidelines. Despite this improvement, the rural transport infrastructure in the country remains underdeveloped and investment in the road sector is still necessary. TA No. 7573-NEP - Decentralized Rural Infrastructure and Livelihoods Project II designed a project that is envisaged to address the lack of accessibility of the rural population in 18 very poor and remote districts. The focus of the project is on: (i) rural incomes uplifting through increased employment, skills training, and improved access to credit for the rural poor; (ii) capacity building and decentralized governance, including addressing corruption concerns; and (iii) fostering rural transport connectivity and complementary community infrastructure investments. The underpinning thrust will be on labor based equipment supported construction techniques to promote greater involvement of road building groups in construction activities, which will boost local employment. A comprehensive maintenance initiative will be introduced in all project districts.
ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 1 Final Report – RRP
I. INTRODUCTION
1. This Final Report (FR) has been prepared pursuant to Contract No. COSO/41-553 between the Asian Development Bank (ADB) and ANZDEC Limited (ANZDEC), in association with Consolidated Management Services Nepal (P) Ltd. (CMS), dated November 2010, for the implementation of ADB TA No. 7573-NEP, for project preparation of the Decentralized Rural Infrastructure and Livelihoods Project II (DRILP II) with project activities in 18 districts of Nepal. The executing agency (EA) for DRILP II is the Department of Local Infrastructure and Agricultural Roads (DOLIDAR) within the Ministry of Local Development (MLD), and the implementing agencies (IAs) are the District Development Committees (DDCs) in each of the 18 project districts. 2. A stakeholders‟ workshop on the DFR was held in Kathmandu on 16 June 2011, in conjunction with a Fact Finding Mission from ADB that took place from 15 to 30 June 2011. This Final Report took into account feedback from the workshop and comments by the Government of Nepal (GON) and ADB. 3. The FR is structured based on the standard ADB Report and Recommendation of the President to the Board of Directors (RRP) template.
II. THE PROJECT
A. Rationale
4. Nepal is a land-locked country situated between China in the north and India in the south, east, and west. The country‟s population in 2011 is estimated to be around 29 million, with a current population growth rate of 1.4% per annum. The land area is 147,181 sq km, and the population density is generally higher in the southern and central districts of the country. It is one of the poorest and least developed countries in the world, ranked 145 out of 179 countries in terms of the Human Development Index (HDI) estimated in the United Nations Human Development Report 2008. The economy is mainly agrarian, but with growing secondary and tertiary sectors. Poverty is widespread throughout the country, but is particularly high in rural areas, the hills, and the mountains. Throughout the whole country, the percentage of the population living on less than US$1 per day is estimated to be around 24%. The average per capita income in 2010 has been estimated at around US$470 by the International Monetary Fund (IMF). Nepal, with a Gini coefficient of 47.3 in 2003, has the highest rate of inequality in Asia. 5. Until the late 1950s, the dominant means of transport and communication in the country were foot trails and mule tracks. Since that time, considerable effort has been made by the Government of Nepal (GON), with the support of the international community, to link important geographical and socio-economic areas of Nepal by road transport, and to a lesser extent, by air transport. Recent estimate of the total length of rural roads in Nepal is 14,293 km, of which 56% are classified as all-weather and 44% are dry weather roads only1. Nepal‟s road network increased by 6.7% annually over the period 1995 to 2004, with the largest expansion being on district or rural roads which grew annually by 11% over the same period. Road density remains very low especially in remote districts in the hills and mountain regions. Although the rural road network has been expanded, not all existing roads are passable – some roads constructed during the dry season are washed away during the rainy season, and the combination of landslides, lack of maintenance, inappropriate cut and fill, and lack of bioengineering have made rural roads impassable for some, or all, of the year. 6. Government of Nepal (GON) has also carried out extensive efforts to expand the network of trail bridges in the country. The majority of settlements in hilly and mountainous areas of Nepal are not accessible by motorized vehicles; they are cut off from the road
1 SWAp Initiative Folder 5, DOLIDAR, September 2009 ADB PPTA Decentralized Rural Infrastructure and Livelihoods Project II 2 Final Report – RRP network, and thus face constraints of limited access to food supplies, health and education facilities, and other essential services. In these areas, rural transport is largely based on a trail-based system of foot trails, mule tracks, and trail bridges. 7. Over the last decade, GON made a commendable effort in improving rural accessibility through the development of suitable policies, legislative enactments, and guidelines, and continued attention to this important issue remains a primary concern in Nepal. The sector received high priority in the government's three-year interim plan (2007–2010) where transport development is allocated around 60% of the entire rural infrastructure investment. 8. Nepal suffers from chronic rural poverty, with large differences in income levels between districts and communities. In 18 very poor and remote hill and mountain districts2 of Nepal, poverty incidence is around 41% in 20043 which significantly higher than the national level of 30%. These differences are inextricably linked to the lack of accessibility for the rural population in the districts. The more distant the districts are from the centre, and the more mountainous, the less access people have to social services, markets, and ultimately opportunities to enhance their economic activities and consequent livelihoods. The lack of mobility of the rural population in these districts is a particularly constraining factor. More than one-third of Nepalese in rural areas live at least a two hours walk from the nearest all- season road; five out of 75 district headquarters are not as yet connected by road. The scope for developing rural transport, particularly rural roads and tracks, and trail bridges and ropeways (both gravity and mechanized), is immense, and requires a major investment in the medium to longer-term. Non-transport constraints are also part of the broad accessibility- poverty nexus. These include: (i) the lack of social and market facilities; (ii) the lack of integrated accessibility planning; and (iii) low income and cash availability. The situation is further aggravated by the persistence of strong inequalities between castes and ethnic groups. 9. Past and ongoing experience in the rural roads sector in Nepal4 provide key lessons learned which include: (i) the full impacts of rural roads are only realized when complemented by community-based small-scale investments; (ii) to increase local community ownership and commitment for operation and maintenance (O&M), by securing user participation in all stages of the project cycle; (iii) O&M needs to be addressed from the beginning of subproject planning to respond to issues such as skills shortage, weak capacity, and resource availability at the level of the District Development Committees (DDCs) and Village Development Committees (VDCs); (iv) adequate competition needs to exist in rural transport services to ensure the full benefit of the roads is realized; and (v) measures must be taken to ensure that rural transport infrastructure (RTI) benefits do not accrue only to the better off, by targeting employment generated by the project on the poor and disadvantaged groups including women, excluded ethnic groups, and persons who are victims of the past conflict; assisting the rural poor by facilitating improved access to credit on suitable terms, which has been a constraining factor in the past, with the rural poor unable to access credit due to lack of collateral; and targeted skills and awareness training for the poor and disadvantaged groups including victims of the past conflict. 10. The proposed project is targeted to address the lack of accessibility of the rural population in 18 very poor and remote hill and mountain districts. The three main objectives be achieved in a sustainable manner will be: (i) community development and rural incomes uplifting through increased employment, skills training, and improved access to credit for the rural poor; (ii) capacity building and decentralized governance, including addressing corruption concerns; and (iii) provision of rural transport infrastructure (RTI) and complementary community infrastructure investments. The project incorporates lessons
2 Including Taplejung, Solukhumbu, Okhaldunga, Ramechhap, Gorkha, Lamjung, Baglung, Myagdi, Jajarkot, Dolpa, Jumla, Mugu, Humla, Kalikot, Bajhang, Bajura, Baitadi, and Darchula 3 GON CBS, WFP & WB, Small Area Estimation of Poverty and Caloric Intake and Malnutrition in Nepal, 2006 4 Including the ADB Decentralized Rural Infrastructure and Livelihood Project (DRILP), ADB Rural Reconstruction and Rehabilitation Sector Development Program (RRRSDP), etc.
ADB PPTA Decentralized Rural Infrastructure and Livelihoods Project II 3 Final Report – RRP learned from past and ongoing projects in the rural roads sector and offers a combination of innovative proposals. First, it has been clearly demonstrated that there are limits to engaging the local population through road building groups (BGs) based solely on the use of labor based, environmentally friendly, and participatory approach (LEP) construction techniques. In particular, construction in areas of hard rock has been found to be especially difficult. The use of labor based equipment supported (LBES) construction techniques will promote greater involvement of BGs in construction activities which will boost local employment. 11. Second, road maintenance is often not carried out at all, especially routine and periodic maintenance. International experience has clearly demonstrated significant economic benefits from road maintenance, including routine, periodic, and emergency maintenance. At present, district administrations lack “maintenance culture” and have limited funding to undertake road maintenance. To address this serious deficiency, a comprehensive maintenance initiative will be introduced in all 18 project districts, which is broadly in line with the current pilot project developed in seven other districts of Nepal for a national SWAp for road maintenance for rural roads. The maintenance initiative will help to develop “maintenance culture” and boost local employment in the districts. 12. There is high demand for expanding the available suite of complementary community investments including the provision of ropeways (gravity and mechanized) and rural market places, to be implemented where demand exists, along with continued support for construction of trail bridges. 13. Employment generated by RTI investments can be linked more effectively to improved livelihoods through encouragement of a savings scheme among members of BGs, provision of more focused livelihood-related training, and facilitation of microfinance access for BGs and savings and credit groups so they can venture into viable economic activities. 14. Existence of corruption is an ongoing general concern in Nepal. There are specific measures that can counter this which are based on putting in place an efficient and transparent procurement system. These include capacity-building of qualified procurement staff, clear procedures for bidding (including e-bidding), and clear procedures for quality of work monitoring and performance supervision. 15. The Project promotes the view that provision of RTI per se is only a start to improving accessibility for the rural population; it is also important to address concerns existing in regard to rural transport services (especially public passenger transport and road freight services). Government and the DDCs need to constantly monitor outcomes in the rural transport services sector, so as to protect the public interest (and especially the rural poor) from predatory pricing of road freight rates in the rural areas, and inefficient and dangerous public passenger transport services. 16. The Project is consistent with the ADB Country Partnership Strategy 2010–2012, based on four pillars: (i) inclusive economic growth (key infrastructure, micro-enterprise growth, income generation through skills development); (ii) inclusive social development (improved access to social services, targeted assistance to the poor and socially excluded); (iii) governance and capacity building (enhanced transparency, capacity building to improve public sector effectiveness); and (iv) climate change adaptation and environmental sustainability (“climate proofing” techniques in rural roads design, construction, and maintenance; “greening” of roads using bio-engineering and other measures; enhanced measures to monitor environmental impacts and implement environmental management plans).
ADB PPTA Decentralized Rural Infrastructure and Livelihoods Project II 4 Final Report – RRP
B. Impact and Outcome
17. The expected impact of DRILP II will be reduced rural poverty in 18 very poor and remote hill and mountain districts of Nepal 5 affected by the civil conflict. The expected outcome of DRILP II will be improved rural communities' access to goods, services, facilities, and employment opportunities. C. Outputs
18. The project outcome will be achieved through the following outputs: (i) community development and rural livelihood restoration; (ii) capacity building and decentralized local governance; (iii) rural transport infrastructure; and (iv) project management services. 1. Community development and rural livelihood restoration
19. The Project will improve community infrastructure in the 18 districts. This will include about 90 school buildings and health posts, 36 foot/mule/link trails, 54 water supply and irrigation schemes, 10 micro-hydropower, eight rural market places, 10 ropeways, and other community infrastructure. These investments are capped at $120,000, or 20% of the cost of the road subproject, whichever is lower. 20. Community infrastructure will be based on the demand and identified priorities in the ZOIs of the road subprojects. Village Development Committees (VDCs) and local communities will identify their priority subprojects through comprehensive demand surveys for potential supplementary investments in the ZOIs. The District Implementation Support Consultant (DISC) teams will prepare the supplementary investments (including detailed design and due diligence studies) for approval by the Project Coordination Unit (PCU) at DOLIDAR based on agreed criteria that include clear access benefit related to the road subproject, and at least 50% of target beneficiaries being women and members of disadvantaged groups. The community infrastructure subprojects will be typically implemented by local BGs. The VDC and community beneficiaries will contribute to the cost of the supplementary investments, mostly in the form of in-kind contributions of local building materials, or provision of land. The BGs working on these supplementary investments will be paid for their labor inputs in order to generate employment and improve livelihoods in the ZOIs. 21. The Project will support BGs to implement a savings scheme among its members. Achieving regular savings will help the poor learn how to save and to manage these savings to improve their living conditions or to invest in productive assets. For each subproject, an income uplifting micro-plan will be prepared to mobilize savings from the employment for the use of new sets of skills acquired by life skill training. The plan will examine long-term local employment opportunities and options for external resources, if required. Suitable mechanisms will be identified for a business expansion plan to link with available or expected financial institutions in the local area. 22. Members of BGs and their households, especially women, will benefit from targeted skills training for income generation and livelihood improvement. Targeted skills training are required in the following subjects: driving, small hotel and lodge management, automobile repair and maintenance, communication and computer-related training. Vocational training has been proven to be effective in enabling the poor and disadvantaged groups to attain certificates6 as skilled workers after undergoing the prescribed number of training hours and
5 The 18 project districts are Taplejung, Solukhumbu, Okhaldunga, Ramechhap, Gorkha, Lamjung, Baglung, Myagdi, Jajarkot, Dolpa, Jumla, Mugu, Humla, Kalikot, Bajhang, Bajura, Baitadi, and Darchula. 6 Vocational training attended over 390 hours qualifies any person as a skilled worker. Certification is administered by GON‟s National Skills Testing Board (NTSB) based on a system of skill testing and grading that is recognized in Nepal and other countries, opening up long-term employment opportunities for trained individuals.
ADB PPTA Decentralized Rural Infrastructure and Livelihoods Project II 5 Final Report – RRP required testing. The Project will provide focused skills training to about 3,000 beneficiaries, primarily from BGs and of whom, at least 40% are women and 60% are from poor disadvantaged groups including victims of the past conflict. 23. The social awareness raising training will be provided to about 9,000 persons of whom 80% are women, poor and from excluded groups. The focus of awareness training will be in HIV/AIDS prevention, good nutrition, health and sanitation, and general health and safety concerns in poor disadvantaged groups. The target of awareness-raising programs will be mostly women and poor disadvantaged groups. 24. In nine pilot districts, the Project will work with existing savings and credit groups, and assist BGs wishing to form themselves into formal Savings and Credit Cooperatives (SCCs). These savings and credit schemes currently perform a vital role in poor rural communities – they manage and administer groups‟ savings while encouraging a culture of savings amongst members, and provide an accessible facility especially to poor members, to meet their short- and mid-term finance requirements. If they meet the criteria for operating as an SCC, these savings and credit schemes can access available credit from existing institutional suppliers, most of which do not require the traditional collateral, to support viable economic activities of its members. At present, the accumulated savings within the groups are lent out to members for critical emergency loans (e.g., medical emergencies) at more advantageous terms compared to that of informal credit markets. To this end, the project will strengthen existing groups, including BGs that are effectively operating as SCCs, and assist them to form into groups to pool and manage their resources and to strengthen their capacity to access existing credit channels. Local NGOs based in the pilot districts will be engaged to work closely with BGs to form savings and credit cooperatives, assess the local situation in terms of microfinance demand and supply, support the organizational development of the groups and facilitate access to existing microfinance sources for viable economic activities. 2. Capacity building and decentralized local governance
25. The Project will further develop the project management and implementation capacity of DOLIDAR, particularly the Project Coordination Unit (PCU), and the district administrative and technical offices through the process of “learning by doing”. In nine selected districts where microfinance access will be undertaken the district will engage suitably qualified Local NGOs for facilitating microfinance access. A national NGO (NNGO) will be contracted to supervise and monitor the community mobilization and social development activities in the districts. The NNGO will also be responsible for the conduct of baseline, outcome, and end- of-project surveys and reporting. Regional study tours will be designed and undertaken for 15 central and 72 district officers to further enhance the learning experiences. 3. Rural transport infrastructure
26. The project will improve 260 km of rural roads in the 18 districts (approximately 200 km new and 60 km rehabilitated rural roads). A total of 1,200 km of rural roads will be fully maintained in the 18 districts and 6,500 m of trail bridges will be constructed. The road subprojects will generate employment of 3.7 million person-days of unskilled, semi-skilled and skilled work in the subproject zones of influence (ZOIs), of which 40% will be provided by women. 27. Implementation of road subprojects will employ labor-based equipment-supported (LBES) methods, and will be promoted on works performed by Building Groups (BGs) and contractors, where appropriate. The LBES approach to road construction and maintenance entails applying equipment support to construction tasks where the purely labor-intensive approach has shown to be ineffective (e.g., rock excavation, transport of construction materials). It will improve construction quality and sustainability of transport benefits.
ADB PPTA Decentralized Rural Infrastructure and Livelihoods Project II 6 Final Report – RRP
28. The Project will encourage active involvement of BGs over private contractors in new road construction. These will comprise residents in the ZOIs of the road subprojects with support from district-level social mobilizers. Membership of women and disadvantaged groups in the BGs will be actively promoted; they will be employed on „equal pay for equal work‟ basis and will receive, along with the other members of the BGs, relevant skills training. The LBES method to road construction will encourage greater participation of BGs; the use of flexible construction technologies such as rock splitters and drills, will make the difficult task of rock excavation more attractive to the BGs. Experienced construction individuals will train the BGs in the more complex construction tasks such as fabrication of gabions and concrete construction. 29. A pipeline of road subprojects was developed under the ADB DRILP and other ADB supported rural road projects, based on established criteria, of which around 13 road subprojects have completed and approved designs and due diligence studies. These subprojects are ready for implementation by loan effectiveness. It is expected that the pipeline of subprojects may change to some extent as the project progresses, with some subprojects being replaced or the scope of subprojects under preparation being adjusted to accommodate a more equitable distribution of RTI investments across districts. Consulting services at central and district levels will ensure increased attention is given to quality issues in road subproject design and construction. Attention will also be given to implementation of environmental management plans through more active performance monitoring of BGs and contractors during construction. 30. The Project will provide direct support to road maintenance programs at district level in accordance with the maintenance sector wide approach (SWAp). It will contribute to annual maintenance budgets of the 18 districts through a system of prequalification. To qualify for the maintenance grant under the Project, districts will have to appoint a qualified maintenance engineer, prepare an inventory of all district roads, conduct annual road condition surveys and prepare annual road maintenance plans. The Project will provide technical support to the districts to enable them to qualify for the annual maintenance grants. Road maintenance planning will be performed in accordance with the maintenance SWAp approach by developing an annual maintenance plan for district roads based on a post monsoon inspection of all district roads. A system of toll collection will be piloted in nine districts to augment road maintenance budgets. Maintenance support will focus on providing routine and periodic maintenance on district roads (largely earthen and gravel) that are of maintainable standard. Routine maintenance will be delivered by length-persons sourced from ZOIs of the road being maintained and employed directly by the districts, further promoting employment generation in the districts. 4. Project management services
31. The Project will further develop project management and implementation capacity of DOLIDAR, particularly the PCU and the district administrative and technical officers, through “learning by doing”. Technical support to project implementation will be provided through a Central Implementation Support Consultant (CISC) and DISCs in each of the 18 districts. The CISC and DISCs will build capacity at central and district levels for effective and efficient project management and implementation, and will promote the “learning by doing” process. They will ensure adequate attention to social and environmental monitoring of the road subprojects; this will be done by putting more, and sustained, focus on gender and development issues, as well as by increased efforts to get EMPs more thoroughly implemented and monitored during construction. 32. A four-wheel drive vehicle will be provided (including operation and maintenance costs of the vehicles) to each District Project Office (DPO) to improve implementation performance.
ADB PPTA Decentralized Rural Infrastructure and Livelihoods Project II 7 Final Report – RRP
33. Common financial management system software is proposed for the Ministry of Local Development (MLD), District Development Committees (DDCs) and DOLIDAR for improved reporting of project financial accounts. Currently DOLIDAR uses a financial accounting system based on Excel while the MLD and the DDCs use a customized system designed by a software developer. The existing software at the MLD and DDCs needs further upgrading to enable Statement of Expenditures (SOE) reporting to be generated by the system and to improve security features of the existing software for accuracy and integrity of financial reports. D. Investment and Financing Plans
34. The Project is estimated to cost $63.54 million, including VDC and beneficiary contributions of $1.04 million, contingencies of $5.37 million, financial charges of $0.95 million and taxes and duties of $4.24 million. The investment plan is summarized in Table 1. Detailed cost estimates by expenditure category and by financier are included in the Project Administration Manual. Table 1: Project Investment Plan ($ million) Item Amounta A. Base Costb 1. Community development and rural livelihood restoration 14.60 2. Capacity building and decentralized local governance 1.30 3. Rural transport infrastructure 32.00 4. Project management services 10.70 Subtotal (A) 58.60
B. Contingenciesc 8.50
C. Financing Charges During Implementationd 1.20 Total (A+B+C) 68.30 a Includes taxes and duties of $4.24 to be financed from the Government resources and ADB loan resources. b In mid-2011 prices. c Physical contingencies computed at 10% for civil works; and 10% for field research and development, training, surveys, and studies. Price contingencies computed at 0% for 2012 and 2013, and 0.5% thereafter on foreign exchange costs and 7% for 2012, 6% for 2013, and 5.5% thereafter on local currency costs; includes provision for potential exchange rate fluctuation under the assumption of a purchasing power parity exchange rate. d Includes interest and commitment charges. Interest during construction for the ADB loan has been computed at the Asian Development Fund initial rate of 1% and for the OPEC Fund for International Development (OFID) loan at the OFID-loan interest rate of 2.25% (inclusive of 1% service charge). Source: PPTA Consultant‟s estimates.
35. The Government has requested a loan of $18 million and a grant of $7 million from ADB‟s Special Funds Resources to help finance the project. The loan will have a 32-year term, including a grace period of eight years, an annual interest rate of 1.0% during the grace period and 1.5% thereafter, and such other terms and conditions set forth in the draft loan and project agreements. The Government has also requested a loan of $20 million from the OPEC Fund for International Development (OFID) to help finance the project. The loan will have a 20-year term, including a grace period of five years, and an annual interest rate of 2.25% (inclusive of a 1.0% service charge). The interest during construction on both the ADB and the OFID loans will be capitalized into the ADB loan. 36. The financing plan is in Table 2. The ADB loan will be used to finance part of the costs of civil works for road infrastructure and supplementary investments, land acquisition, and surveys and studies, as well as the entire cost of interest during construction. The ADF grant will be used to finance part of the costs of civil works for supplementary investments and road maintenance, purchase and operation and maintenance of vehicles, training, and incremental staff as well as all of the cost of study tours and two national consultants in the CISC. The OFID loan will be used to finance part of the cost of road infrastructure and the
ADB PPTA Decentralized Rural Infrastructure and Livelihoods Project II 8 Final Report – RRP
SDC grant will be used to finance part of the cost of the CISC and 18 DISCs. The government will finance the remainder of the costs. Table 2: Financing Plan Amount Share of Source ($ million) Total (%) Asian Development Bank 18.00 28.33 Asian Development Fund Grant 7.00 11.02 OPEC Fund for International Development 20.00 31.48 Swiss Agency for Development and Cooperation 5.00 7.87 Government 12.50 19.67 Village Development Committees/Beneficiaries 1.04 1.64 Total 63.54 100.00 Source: PPTA Consultants
E. Implementation Arrangements
37. The Department of Local Infrastructure Development and Agricultural Roads (DOLIDAR), a department within the Ministry of Local Development (MLD) will be the Executing Agency. DOLIDAR will be responsible for overall project coordination, management, and implementation. Its function is to provide national direction in the rural infrastructure sub-sector. The technical and project management skills of DOLIDAR have developed substantially since its formation, through support from ADB and other development partners, and through its experience of managing a number of rural infrastructure projects. 38. A Project Coordination Unit (PCU) was established within DOLIDAR in Kathmandu during DRILP I. The PCU is responsible for (i) detailed planning of project implementation; (ii) guiding and monitoring the District Development Committees (DDCs) that participate in the project; (iii) allocating and disbursing project funds in accordance with mechanisms and processes established in the Borrower‟s Local Body Financial Administration Regulations, 2056 (2000); (iv) liaising with other donor-funded projects in the rural infrastructure sector on day-to-day implementation matters; (v) preparing consolidated annual work plans; (vi) ensuring satisfactory implementation of the gender action plan and the resettlement frameworks and plans; and (vii) preparing necessary progress reports as well as the project completion report. 39. MLD has reconstituted existing steering committees to form a joint project steering committee (PSC) for all development partners‟ rural transport infrastructure projects, in an integrated sector-wide approach. The PSC shall meet whenever necessary, but not less than twice a year to (i) review progress under the Project; (ii) resolve policy issues; (iii) coordinate sector activities; and (iv) guide DOLIDAR. 40. The Implementing Agencies will be the DDC in each of the 18 project districts. Project implementation at the district level will be the responsibility of a District Project Office (DPO) within the District Technical Office (DTO) of each DDC. 41. The Central Implementation Support Consultant (CISC) provides technical services to the PCU, DOLIDAR to facilitate the execution of the project. District Implementation Support Consultant (DISC) teams provide (i) technical inputs for planning, engineering design, construction supervision and quality control of subprojects and supplementary investments; and (ii) social inputs for awareness raising, participation, mobilization of beneficiaries and social development. The CISC provides guidance and technical support to the DISC teams. 42. Implementation arrangements are summarized in Table 3 and described in detail in the Project Administration Manual.7
7 Project Administration Manual (Linked Document 2).
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Table 3: Implementation Arrangements Aspects Arrangements Implementation period January 2012 to December 2016 Estimated completion date 31 December 2016 Management (i) Oversight body Project Steering Committee Secretary, MLD (chair) DG, DOLIDAR; DDG DOLIDAR; Project Coordinator, PCU, DOLIDAR; Representative, MOF; Representative, DDCs; Representative, Donors (members) (ii) Executing agency DOLIDAR (iii) Key implementing agencies DDCs (iv) Implementation unit DISC teams in each district as required, DPOs and DTOs Procurement Community Several contracts $ 42.72 million Procurement/ National competitive bidding Consulting services QCBS (national 5,760 person- $ 3.84 million consultants) months QCBS (NGOs) $0.67 million QCBS (training) $2.57 million Individual 96 person-months $ 0.21 million recruitment Retroactive financing and/or ADB may, subject to its policies and procedures, allow on advance contracting request (i) advance contracting of civil works, equipment and materials, and consulting services; and (ii) retroactive financing of eligible expenditures up to 20% of the proposed loan, incurred prior to loan effectiveness but not earlier than 12 months before the date of signing of the related legal agreement. Any approval of advance contracting will not constitute a commitment by ADB to finance the project. Disbursementa The loan and grant proceeds will be disbursed in accordance with ADB's Loan Disbursement Handbook (2010, as amended from time to time) and detailed arrangements agreed upon between the government and ADB. CISC = Central Implementation Support Consultant; DDC = District Development Committee; DDG = Deputy Director General; DG = Director General; DISC = District Implementation Support Consultant; DOLIDAR = Department of Local Infrastructure Development and Agricultural Roads; DPO = District Project Office (Officer); DTO = District Technical Office/Officer; MLD – Ministry of Local Development; PCU = Project Coordination Unit; TBA = to be advised a For guidance, refer to the Loan Disbursement Handbook and the Technical Assistance Disbursement Handbook (2010, as amended from time to time)
III. DUE DILIGENCE
A. Technical
43. The design of DRILP II has sought to address existing technical weaknesses in DRILP I. The effectiveness of DRILP I has been reduced by a number of technical issues. The implementation methodology employed under DRILP I has not fully maximized employment of local disadvantaged groups (DAGs) and reduced the functionality of the constructed roads. Innovations designed to improve road functionality include the use of more appropriate construction technologies in key tasks like excavation of hard rock and more effective construction planning to improve productivity. The poverty impact would be increased if Building Groups (BGs) performed a higher percentage of construction. BGs increase the participation rate of local disadvantaged persons because up to 30% of
ADB PPTA Decentralized Rural Infrastructure and Livelihoods Project II 10 Final Report – RRP contractors‟ staff are experienced construction workers sourced from other districts. The main factors restraining the use of BGs are the selection of construction technology and skills shortages. Proposed initiatives to improve the participation of BGs are the employment of experienced construction individuals to train BGs in the more complex construction tasks, such as fabrication of gabions and concrete construction. The proposed use of more flexible construction technologies, such as rock splitters and drills, will make the difficult task of rock excavation more attractive to BG members. 44. Another key weakness is the lack of effective maintenance of the road network. Generally, district roads are in poor condition due to inadequate maintenance budgets, and poor maintenance planning which gives preference to rehabilitation over the more cost effective routine and periodic maintenance. DRILP II addresses this key weakness by providing considerable support to district road maintenance. The support will be implemented through government programs, and be the first financial support to road maintenance through the maintenance SWAp initiative. The project will provide technical assistance and funding for road maintenance on a performance basis. The project will encourage district administrations to fully comply with government road maintenance policies by offering support to districts that use their national government road maintenance grants responsibly. The maintenance initiative will improve project efficiency by creating employment on a more sustainable and efficient basis than road construction. The road maintenance initiative will generate employment at a lower cost to the project because of the complementary government funds. The maintenance initiative will also address the low rate of employment generation per month, currently 42,600 person days per year per district, because of the simpler preparatory and procurement procedures. Increasing the employment per month will significantly reduce the high cost of management and supervision experienced in DRILP I. The maintenance initiative will provide sustainable employment to the participants as the need for road maintenance is ongoing. The anticipated employment per district is 30,700 person days per year. Traditionally, routine maintenance generates the highest investment returns because maintaining a road is more cost effective than construction of a new road. The maintenance initiative will also support sustainability by strengthening the capacity of district administrations to maintain the road network. B. Economic and Financial
45. Economic viability of the Project was assessed through a detailed analysis of three sample subprojects – in Bajura, Taplejung, and Solukhumbu Districts – which are considered to be representative of the types of rural infrastructure subprojects to be financed under the Project. The length of the roads ranges from 7.7 km for the Bajura road to 21.8 km for the Taplejung road. All of the roads were assessed to be appropriately designed to represent the least-cost approach to providing improved transportation. Economic benefits were assessed both in terms of consumer surplus through reduced costs for existing and incremental transportation of people and goods, and producer surplus in terms of reduced costs of agricultural production and incremental production. 8 Estimates of the economic benefits were accomplished through a series of focus group meetings conducted along the route of the proposed road. The analyses of the sample subprojects indicated that the economic internal rate of return (EIRR) is 15.3% for Bajura, 20.0% for Solukhumbu, and 22.7% for Taplejung. The sensitivity tests and risk analysis confirm that the subprojects are extremely robust. Distribution analyses confirm that the Project will provide substantial benefits to the poor.
8 Reduced costs of agricultural inputs and increased prices of outputs arising from reduced transportation costs were omitted from the consumer surplus estimates in order to avoid double counting.
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C. Governance
46. Project specific governance risks have been analyzed by carrying out a governance risk assessment. A thorough assessment of the financial management and procurement capacities of MLD and DOLIDAR was undertaken and a set of realistic risk mitigation measures have been proposed and discussed with the Government. Risks associated with project management, including procurement and disbursement, will be mitigated by (i) providing consulting inputs to advise and assist in the procurement of goods and services; (ii) requiring that civil work contracts include a condition that contractors adhere to ADB‟s Anticorruption Policy (1998, amended, from time to time); (iii) the PCU periodically inspecting the contractor‟s fund withdrawals and settlements; and (iv) reporting on project activities and implementation on the website to foster transparency and timely awarding of contracts. ADB along with the other development partners are continuously supporting the relevant government agencies to reduce public procurement and corruption risks at the national level. ADB‟s anti-corruption policy (1998, as amended to date) has been explained to and discussed with the Government and DOLIDAR. D. Poverty and Social
47. The Project will create 4.7 million person-days of jobs, aided by road improvement and maintenance and the development of community infrastructure. Around 900,000-1,500,000 people (of which 65% are poor) will directly benefit from the project. The poor estimated at around 500,000–1,000,000 mostly from disadvantaged castes (dalits, janajatis) and indigenous people (IP), will be targeted for participation in BGs, complementary investment, and access to micro finance, awareness raising and capacity building and focused livelihood enhancement schemes. The project will enhance rural livelihoods in a number of ways through (i) direct wage payments to the poorest households, amounting to about 40% of subproject construction costs;(ii) social mobilization to raise awareness, promote greater participation and influence in community decision making, access to services and other development opportunities; (iii) promoting self employment and small-entrepreneurship through access to micro-finance and focused skills training; (v) inclusion of rural market places for easy access to markets and trade especially for women, and excluded; (vi) regular maintenance works such as bio-engineering, plantations and nurseries; (vii) enhancing technical/construction skills for increased income of women and excluded; and (ix) promoting public and social auditing to monitor distribution of benefits equitably to poor and marginalized households leading to increased family incomes. A Gender Equality and Social Inclusion (GESI) action plan9 has been prepared for the project to address gender inequality and social exclusion issues. The GESI plan contains specific targets for participation of, and ensuring project benefits reach, poor rural women and disadvantaged groups in the subproject areas. E. Safeguards
48. Environmental. The Project is category B in accordance with the ADB Safeguard Policy Statement (2009). The executing agency and implementing agencies prepared initial environmental examinations (IEEs), including environmental management plans (EMPs), for the sample subprojects during the subproject preparation work. An environmental assessment and review framework (EARF) was also prepared. The framework sets out the requirements for project screening and classification, subproject selection, information disclosure to, and consultation with, the affected people, environmental assessment, environmental management plan (EMP) development and implementation, and monitoring and reporting. The IEEs found the planned subprojects to have only small and localized adverse impacts on the environment, which can be managed by the mitigation measures
9 Included in PAM
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proposed in the EMPs. ADB will make IEEs and EARF documents publicly available following the fact-finding mission. 49. Resettlement and Indigenous People. The Project is category B for involuntary resettlement and category B for indigenous peoples, in accordance with the ADB Safeguard Policy Statement. Most subprojects involve land acquisition and involuntary resettlement, but the involuntary resettlement impact is not considered significant.10 Draft resettlement plans will be prepared for these subprojects. A resettlement framework has been prepared in compliance with the government‟s and ADB‟s policy requirements. An IPPF has also been prepared, with special assistance measures for indigenous people and other vulnerable groups. However, considering the nature and scale of the subprojects, the impact on indigenous peoples is expected to be limited to a few involuntary resettlement and land acquisition cases. In addition, a gender equality and social inclusion plan contains specific actions favorable to indigenous people. ADB will make all the safeguard documents publicly available following the fact-finding mission. F. Risks and Mitigating Measures
50. Major risks and mitigating measures are summarized in Table 4 and described in detail in the risk assessment and risk management plan.11 Table 4: Summary of Risks and Mitigating Measures
Risks Mitigating Measures Political situation affects economic growth Development partners will maintain close links with the and reduces economic opportunities for government and all political parties to ensure that the rural areas; development and reform process is not derailed and Political situation affects government's keeps its momentum beyond the political challenges. capacity to maintain education and health The direction of federalism being deliberated is in line facilities with increased roles and functions of local governments. Political willingness and capacity to reduce Assurances from the government to monitor the rural the influence of transport syndicates and transport services sector, and take action under existing cartels legislation to curb any anti-competitive activities of transport syndicates and cartels. Districts give insufficient emphasis to Social mobilization in the Districts to promote formation recruiting BGs rather than contractors. of BGs. Tender collusion and corrupt local officials Tender collusion and corruption of local officials remains may increase subproject costs and poor a high risk problem in Nepal across all sectors. E- quality of construction bidding will be introduced during the Project to reduce collusion and corruption. Community support for proposed investments VDCs to augment. not forthcoming Training candidates do not complete courses Candidates for training under the project to be carefully successfully selected. Contractors unwilling to operate in more remote Promotion of BGs in construction works. areas, high contract prices, and/or failure to Additional quality control resources (in the CISC) will be complete contracts provided to improve the design and construction standards of works undertaken. Environmental and social safeguards Additional resources to be provided under the Project to measures may lack adequate attention boost capacity to implement and monitor the proposed during planning and implementation. environmental and social safeguards measures. Source: PPTA Consultants
10 Involuntary resettlement impact is considered significant when 200 or more people experience major impact. “Major impact” involves (i) physically displacing people from housing; or (ii) causing people to lose 10% or more of their productive, income-generating assets. 11 Risk Assessment and Risk Management Plan (Linked Document 11).
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IV. ASSURANCES
51. The Government and MLD/DOLIDAR have assured ADB that implementation of the Project shall conform to all applicable ADB policies including those concerning anticorruption measures, safeguards, gender, procurement, consulting services, and disbursement as described in detail in the project administration manual and loan documents. 52. The Government will promote direct involvement of communities in road and other RTI construction through Building Groups formed from able men and women resident in the subproject zone of influence, and members of disadvantaged groups including victims of the past conflict. 53. The Government will support increased road maintenance activities in the districts through the current system of annual budget allocations to the DDCs. The DDCs in the project districts will appoint a Road Maintenance Officer with responsibility for road maintenance planning and implementation. 54. The Government will monitor the development of road transport services in the Project districts, in particular for public passenger transport and road freight transport. Should anti- competitive practices develop in these fields (such as promoted by operators of road transport services through syndicates and cartels) which lead to inefficient and dangerous practices for public passenger transport provision, as well as excessive pricing of road freight transport charges, the Government and the DDCs will take the necessary steps under current legislation to curtail these anti-social activities and protect the public interest, in particular for the rural poor in the project districts.
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APPENDIX 1: DESIGN AND MONITORING FRAMEWORK
Data Sources and Performance Targets and Design Summary Reporting Assumptions and Risks Indicators with Baselines Mechanisms Impact By end 2020 Assumptions Reduced rural poverty Poverty levels in 18 project Central Bureau of Political and social stability in 18 very poor and districts reduced to 20% from Statistics maintained a/ remote hill and 41% in 2004 Nepal Human Risks mountain districts Development Report Lower economic growth and reduced economic opportunities for rural areas Outcome By end 2016 Assumptions Widened access to Average annual income per Project surveys Transport services social services and household in subprojects ZOIs (baseline, monitoring, increase in project areas economic opportunities increased by 10% per year from end-of-project) for because of better roads Rs. 69,500 in 2007 representative sample Poverty-focused programs Average number of vehicles of HHs in subproject continued ZOIs operating per day increased to Women willing to 10-60 vehicles in subproject ZOIs participate in all activities from a baseline of 0-40 vehicles in 2007 Rate of inflation is contained Freight volume increased by 20% Risks per year from 0.116 tonnes/capita/year in 2007 Poor quality of construction 11.2 million person-days (4.7 million person-days under Tender collusion additional financing) of work is provided Women and disadvantaged groups represent at least 50% of Building Groups membership, from 40% in 2010b/
Outputs By end 2016 Assumptions 1. Community 90 school buildings/health posts, Project progress reports Assumptions development and rural 36 foot/mule/link trails, 54 water Proposals submitted for Appropriate and affordable livelihood restoration supply & irrigation schemes, 10 community community infrastructure micro hydropower, 8 rural market infrastructure investments identified places, 10 ropeways, and other investments Risks community infrastructure constructed involving BGs in BGs/Contractors reports Community support for 50% of the contracts proposed investments not Equal wage for equal value of forthcoming work Tender collusion and 6,000 beneficiaries trained in corrupt local officials which livelihood related skills, of which may lead to higher at least 40% are women and subproject costs and poor 60% are poor and excluded quality of construction Access to microfinance by BGs and savings and credit schemes piloted in 9 districts of the total receiving the schemes 40% are women and 60% poor and excluded 2. Capacity building 3,000 beneficiaries trained in Project progress Assumptions and decentralized livelihood related skills, of which reports, monitoring, and Suitable candidates for local governance at least 40% are women and project reviews proposed training are 60% are poor available and willing to 9,000 persons provided participate
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Data Sources and Performance Targets and Design Summary Reporting Assumptions and Risks Indicators with Baselines Mechanisms awareness-raising training, of District administrative and whom 80% are women and poor technical officials up to the Access to microfinance by BGs commitment necessary to and savings and credit schemes complete the tasks piloted in nine districts required Capacities of DOLIDAR, DDCs Risks and DTOs improved to Frequent transfer of key implement transport staff infrastructure subprojects, and to Training candidates do not deliver development services complete courses 15 Central and 72 District officers successfully participate in and learn from international study tours of which at least 20$ are women 3. Rural transport 200 km of rural roads built and Project progress reports Assumptions infrastructure 60km of rural roads rehabilitated BGs/Contractors‟ Districts have sufficient in 18 districts involving BGs in reports indicating male construction capacity and 50% of the new road construction and female workers able to undertake fair and contracts employed transparent works 1,200 km of rural roads fully Annual Road Condition procurement. maintained in 18 project districts Surveys per district Risks generating 350 length-persons (280,000 person-days) engaged Annual Road Districts give insufficient from the local communities, of Maintenance Plans per emphasis to recruiting which 40% will be provided by district BGs rather than women contractors. 6,500 m of trail bridges built Tender collusion leads to higher subproject costs 3.7 million person-days of work and poor quality of (unskilled, semi-skilled, skilled) construction generated in road subproject ZOIs, mostly from BGs, equivalent to around 50% of road subproject costs, and at least 40% provided by women 215,000 person-days employed in trail bridges subproject ZOIs, equivalent to 30% of construction costs, and at least 40% provided by women Toll collection system piloted in nine districts to augment the district road maintenance funds 4. Project Closer supervision and Project reporting, Assumptions management services monitoring of subprojects by 18 monitoring, and reviews The officials up to the DPOs for improved commitment necessary to implementation performance complete the tasks DOLIDAR retention of project required coordinator and agreed-upon Risks number of staff, number of DTO staff, and Contractors unwilling to required operate in more remote number of consultant and NGO areas, and high contract staff as per schedule prices Vehicles procured Environmental and social according to time and cost safeguards measures may schedules lack adequate attention during planning and implementation
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Activities with Milestones Inputs (Loan) 1. Rural transport infrastructure network extended and ADB: $18 million maintained Item Amount ($ million) 1.1 Completion of remaining subproject preparation studies, Civil works detailed design and due diligence reports, by end-2014 Rural transport infrastructure 9.51 1.2 Construction of road subprojects Community investments 2.38 1.3 Environmental management and monitoring in parallel with Road maintenance 1.66 construction activities Beneficiary training 1.29 1.4 Annual district road condition surveys initiated by end-2012 Technical Services (NGOs) 0.67 and annual road maintenance plans preparation by mid 2013 Land Acquisition and Resettlement 0.58 1.5 Annual road maintenance activities in 18 districts from mid Surveys and studies 0.33 2013, including piloting of toll collection in 9 districts Interest during construction 1.57 2. Community infrastructure provided Co-financier OFID: $20 million 2.1 Identification of all community infrastructure needs and Item Amount priorities, and preparation of plans and detailed designs, ($ million) along with road subprojects by end-2014 Civil works 2.2 Community infrastructure construction along with road Rural transport infrastructure 20.00 subprojects initiated in mid-2012, and fully completed by Government: $12.5 million end-2016 Item Amount ($ million) 3. Enhancement of income generating capacity of Civil works beneficiary households Rural transport infrastructure 8.54 3.1 Initial income generating capacity training contracts awarded Community investments 0.93 by mid-2012 Equipment 0.17 3.2 Income generating capacity training completed by end-2015 Vehicles 1.22 3.3 Contracts awarded to NGOs and other service providers for Training and Study Tours 0.48 microfinance access in 6 districts by mid-2013 Land Acquisition and Resettlement 0.61 Vehicle O&M 4. Capacity building of DOLIDAR and District VDC & beneficiaries: $1.10 million Administrations Item Amount 4.2 CISC, and 18 DISC teams engaged and operational by loan ($ million) effectiveness Civil works 4.2 Procurement of vehicles for DPOs by end-2012 Community investments 1.10 4.3 Procurement of other equipment (survey equipment, rock Grant splitters, laboratory equipment, etc.) by end 2014 ADB: $7 million Item Amount 4.4 International Study Tours for Central and District officers ($ million) undertaken by end-2015 Equipment 0.94 4.5 Contracting of consulting services for required surveys, Vehicles 0.63 detailed designs, etc. Beneficiary training 1.12 4.6 Financial management system software and training Study tours 0.26 provided at DDCs and DOLIDAR by end-2012 National consultants 0.21 DISC technical services 3.84 Co-financier SDC: $7.06 million Item Amount($ million) Equipment 0.01 Vehicles 0.18 CISC consultants 2.50 DISC technical services 3.07 Surveys and studies 0.20 Support staff 0.65 Administration 0.20 aGON CBS, WFP & WB, Small Area Estimation of Poverty & Caloric Intake & Malnutrition in Nepal, 2006 b Report of Outcome Monitoring Survey (OMS), DRILP, 2010 ADB = Asian Development Bank, BG = building group, CISC = Central Implementation Support Consultants, DISC = District Implementation Support Consultants, DOLIDAR = Department of Rural Infrastructure and Agricultural Roads, DRRMC = District Rural Road Maintenance Committee, LAR = Land acquisition and resettlement, O&M = operation and maintenance, OFID = OPEC Fund for International Development, RMUC = Road Maintenance User Committee, SDC = Swiss Agency for Development and Cooperation, SCC = Savings and credit cooperative, SFCL = Small Farmers Cooperative Limited, VDC = Village Development Committee, ZOI = Zone of Influence. Source: PPTA Consultants
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APPENDIX 2. LINKED DOCUMENTS
1. Sector Assessment 2. Project Administration Manual 3. Development Coordination 4. Economic and Financial Analysis 5. Summary Poverty Reduction and Social Strategy 6. Gender Action Plan 7. Environmental Assessment and Review Framework 8. Initial Environmental Examination 9. Resettlement Framework 10. Indigenous Peoples Planning Framework 11. Risk Assessment and Risk Management Plan 12. Indicative List of DRILP II Road Subprojects
Supplementary Documents A. Engineering (full report) B. Environment (field visit report) C. Vocational Training D. Rural Transport Services E. Rural finance F. Financial Management and Procurement G. Detailed and Summary Cost Tables H. Detailed Economic Analysis I. Photo Gallery (available in electronic version)
Decentralized Rural Infrastructure and Livelihoods Project II (DRILP II) (ADB TA No. 7573-NEP)
FINAL REPORT - Linked Document 1 – Sector Assessment
Prepared for the Asian Development Bank and Government of Nepal
ANZDEC Limited in association with Consolidated Management Services Nepal (P) Ltd. August 2011
ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 1 Final Report – Linked Document 1: Sector Assessment
CONTENTS
Page
I. SECTOR PERFORMANCE, PROBLEMS, AND OPPORTUNITIES 1 A. Rural Roads Sector Performance 1 B. Problems and Opportunities in the Rural Roads Sector in Nepal 2
II. GOVERNMENT’S SECTOR STRATEGY 3 A. District Transport Master Plans 3 B. Master Plan for SRN 3
III. ASSISTANCE STRATEGY AND ADB SECTOR EXPERIENCE 4 A. ADB Experience in the Rural Roads Sector in Nepal 4
APPENDIX 1: PROBLEM TREE FOR RURAL ROADS SECTOR IN NEPAL 7
ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 1 Final Report – Linked Document 1: Sector Assessment
I. SECTOR PERFORMANCE, PROBLEMS, AND OPPORTUNITIES
A. Rural Roads Sector Performance
1. Nepal’s transport infrastructure consists of roads and civil aviation. Road transport is the dominant mode, with about 90% of all passenger and freight movements in the country being by road. The roads sector consists of national highways, feeder roads, district (or rural) roads, urban roads, village roads, and an extensive system of tracks and trails mainly used by pedestrian traffic and commercial porters carrying goods. In broad terms, the road network in Nepal can be divided into two categories:
(i) The Strategic Road Network (SRN) consisting of national highways linking major towns and cities in the country, and feeder roads providing linkages from the national highways to smaller district headquarters. The SRN is managed by the Department of Roads (DOR) which reports to the Ministry of Physical Planning and Works (MPPW).
(ii) The Rural Road Network (RRN) consisting of district (or rural) roads, village roads, and tracks/trails. District roads are the responsibility of the District Development Committee (DDC) in each district. Village roads and tracks/trails are the responsibility of the Village Development Committee (VDC) in each village, in conjunction with the DDC. At the national level, the Department of Local Infrastructure and Agricultural Roads (DOLIDAR) has responsibility for coordinating and facilitating rural transport infrastructure development in Nepal. DOLIDAR, which reports to the Ministry of Local Development (MLD), sets general standards for construction and maintenance of rural roads in the country.
2. While road transport is dominant transport mode in Nepal, the road density is extremely low, estimated to be just 11.4 km of road per 100 sq km, and 0.71 km per 1,000 persons. This is substantially less than in neighboring countries, such as India (90 km of road per 100 sq km, and Bangladesh (150 km of road per 100 sq km). However, over the last three decades, Nepal has put increased emphasis to expanding the national road network (both SRN and RRN). As of 2009, the DOR estimates that the SRN covers 7,459.5 km. Total extent of the RRN is less well known, as few (if any) districts currently maintain rural road inventories. Best estimates available indicate a total length of rural roads in Nepal of 14,293 km, of which 56% are classified as all weather, and 44% are dry weather roads only (SWAp Initiative Folder 5, DOLIDAR, September 2009). Nepal is divided into five development regions; the Central and Eastern regions are best served by roads, while the Western, Mid- Western, and Far-Western are least served by roads.
3. Recorded annual growth in the numbers of motor vehicles in Nepal over the last 12 years has been around 13% on average. However, it is apparent that the vast bulk of this growth has taken place in the major cities and towns, and there have been only very modest increases in the rural areas, and especially in the hilly and mountainous districts of the country where rural road networks are generally under-developed. Road traffic volumes on existing rural roads in the hilly and mountainous districts are generally very low, typically less than 50 vehicles per day. In addition, rural transport services in the hilly and mountainous districts of Nepal are poorly developed. Nevertheless, once new rural roads in these districts are provided, the response to the inherent demands for improved accessibility by the rural population often leads to a quick reaction from transport services providers, especially for public transport by bus, and freight transport by trucks.
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B. Problems and Opportunities in the Rural Roads Sector in Nepal
1. Inadequate Maintenance of Rural Roads
4. Undoubtedly, the central issue facing the rural roads sector in Nepal is the totally inadequate attention given to proper maintenance of the existing network, including routine, periodic, and emergency maintenance. Some international donors now openly question the wisdom of constructing any further new rural roads in Nepal until this concern is properly addressed by the responsible agencies, namely the DDCs and the VDCs. DRILP II proposes to make a step forward to address this concern by trialing an innovative performance based maintenance initiative in the DRILP II districts. If this trial proves to be successful, it provides the basis for instilling a maintenance culture in the district which is designed to be sustainable in the medium to longer term. The initiative also generates substantial longer term employment benefits in the districts on a sustainable basis, hence contributing to improvement of livelihoods in the districts.
2. Poorly Designed Rural Roads
5. A second important issue is the existence of many rural roads which have been developed in the past without proper engineering design, leading to poor road drainage and extreme difficulties keeping these roads open for motorized traffic. The DRILP II TA recommends that only readily maintainable roads be subject to ongoing maintenance activities. For those existing rural roads which have never been properly designed and constructed, it is recommended that the solution in the medium to longer term is to completely rebuild these roads to adequate engineering standards.
3. All Weather Roads versus Dry Weather Roads
6. Many existing rural roads are essentially only dry weather roads; typically after each wet season, considerable expenditures are required to bring these roads back to a useable condition. The current policy of MLD is to aim to have all new rural road construction to all weather standards wherever possible. Nevertheless, with the limited financial resources available to the rural roads sector, this objective is not always possible; in addition, under the decentralization arrangements existing in Nepal, such decisions ultimately fall on the DDCs. Clearly, with limited resources, they need to make a trade-off between a larger rural road network including dry weather roads only, and a smaller rural road network of all weather roads only.
4. Inadequate Coverage of Existing Rural Roads Network
7. As is apparent from observations in the field, the existing rural roads network in many of the poorer hilly and mountainous districts in Nepal is very much under-developed. There are major demands from these districts for ongoing assistance from the donor community and Government to further develop their district rural road network. Given the limited financial resources, this issue can best be seen in a medium to longer term perspective. Undoubtedly improvements are being made in rural roads network coverage in the districts, but there is clearly still a great deal to be done to provide substantially improved accessibility to many of the more remote areas of the country.
8. Perhaps surprisingly, land acquisition for rural road construction has not generally been an important issue, especially in the hilly and mountainous districts of the country. The beneficiaries of new rural roads typically will donate their land quite willingly to the project given the readily perceived benefits of such improved accessibility, though they are compensated for any physical losses, such as for the removal of structures, loss of trees,
ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 3 Final Report – Linked Document 1: Sector Assessment and loss of agricultural land. In addition of course, affected land owners who currently hold only very small land parcels are fully compensated.
II. GOVERNMENT’S SECTOR STRATEGY
A. District Transport Master Plans
9. The primary planning tool at the district level for rural roads is the district transport master plan (DTMP). These have been prepared for all 75 districts in Nepal, and they provide a starting point for identifying priorities attached by the DDCs and VDCs to expanding the existing rural road network in each district. DOLIDAR has prepared guidelines for the preparation of DTMPs, and many DTMPs have been updated and improved during the course of DRILP I. The DOLIDAR guidelines provide guidance for screening and prioritizing rural roads for new construction, upgrading, and rehabilitation. However, the DTMPs are not uniform in quality and coverage, but do at least give an indication of the perceived priorities in each district. They show proposed additional road linkages, with justifications based on the population served, and the services they will provide. Some districts have their own resources to implement the DTMPs, but in the poorer hilly and mountainous districts, local resources are severely limited, such that most investment in the rural road sector in these districts is provided from the resources of the Government of Nepal (GON), often in conjunction with international donors. The Three Year Interim Plan for national development (2007-2010) prepared by the National Planning Commission places highest priority on the rural transport infrastructure sector, with about 60% of all investments directed to the rural sector being for rural transport infrastructure.
10. As illustrated in the “problem tree” (Appendix 1), the core problem in the remote rural areas of Nepal is the very limited or no access to facilities, services, and goods for the rural population. The central causes are also illustrated, being low incomes, absence of reliable rural transport infrastructure, and unreliable and expensive transport services. The consequent effects are also shown, as follows:
(i) Rural poverty and exclusion;
(ii) Low on-farm income generation and savings; and
(iii) Low non-farm employment.
B. Master Plan for SRN
11. The DOR produced in 2004 a document titled “Master Plan for Strategic Road Network”. This master plan envisages the following components to be in place by 2024:
(i) Motorable access to all the 75 District Headquarters in Nepal, with black-topped roads to nearly all District HQs;
(ii) Doubling the length of the SRN with a target road density of 15 km per 10,000 persons;
(iii) Ensuring more than 95% of the SRN is in a good/fair annual condition;
(iv) Substantially reducing the walking distance of 13 days to 3 days in extreme cases to reach the motor-head in the High Himalayas and Mountains; and reducing the walking distance to 4 hours to reach the motor-head in the Hills (and Terai); and
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(v) Substantial reduction in road accident rates.
12. To date, no rural roads sector master plan has been prepared for Nepal; though MLD recently announced (May 2011) that such a plan is currently being formulated.
III. ASSISTANCE STRATEGY AND ADB SECTOR EXPERIENCE
13. There are five main donor projects involved in the rural roads sector of Nepal, as of June 2011. These in total cover all of the 75 districts in the country, as follows:
(i) The Decentralized Rural Infrastructure and Livelihoods Project (DRILP I) operates in 18 hilly and mountainous districts in the north of the country; these are generally very poor districts. Donors involved are the Asian Development Bank (ADB) and the Swiss Agency for Development and Cooperation (SDC). DRILP I is scheduled for completion in October 2011;
(ii) The Rural Reconstruction and Rehabilitation Sector Development Program (RRRSDP) operates in 20 districts throughout the country. Donors involved are ADB, OPEC Fund for international Development (OFID), SDC, and the UK Department for International Development (DFID). RRRSDP is scheduled for completion in December 2011;
(iii) The Rural Access Program (RAP) operates in 7 districts. This is funded by DFID, and its current Phase II is scheduled for completion in June 2011;
(iv) The Rural Access Improvement and Decentralization Project (RAIDP) operates in 30 districts throughout the country, though mainly in the south. The main donor is the World Bank (WB), and it is scheduled for completion in December 2013; and
(v) The District Roads Support Program (DRSP) operates in 4 districts in the east of the country. The donor is SDC, and it is scheduled for completion in July 2013.
14. It should be noted that other donors have been involved from time to time also in various components of the rural roads network, including India, China, Japan, and Germany.
A. ADB Experience in the Rural Roads Sector in Nepal
15. As detailed above, there are five rural roads projects currently operating in Nepal, including DRILP I. Lessons learnt by all these projects have been reviewed, and incorporated in the proposed institutional and implementation arrangements for DRILP II.
16. In summary, the lessons learnt are as follows:
(i) More attention should be given to the maintenance of rural infrastructure in the districts.
(ii) With respect to complementary community investments, we recommend to add other possible subcomponents, such as rural market place developments and ropeways (both gravity and mechanized)
(iii) In order to promote more efficient project implementation, a suitable vehicle should be provided to each project district, for the use of the District Technical Office (DTO), the District Project Office (DPO), and the District Implementation Support Consultant (DISC) team to undertake more efficient project preparation and design, construction supervision, and subsequent subproject monitoring in the field;
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(iv) Recognizing that rural road bridges are significantly more expensive than rural roads per se, a more realistic approach needs to be adopted for rural road bridges, depending on their need and feasibility;
(v) A national SWAp approach has been implemented in Nepal for trail bridges, and recognizing the importance of trail bridges to improving accessibility to wider markets and facilities for rural populations in the project districts, rural roads project should continue to support the trail bridge subcomponent.
(vi) There have been some quite understandable delays arising from the extended communication links between the national agencies (PCU, DOLIDAR, and CISC) and the district authorities, and appropriate attention is required to further strengthen such communication links on an ongoing basis;
(vii) For rural transport projects in Nepal, the Project Coordination Unit (PCU) based in DOLIDAR, Kathmandu, is supported by a Central Implementation Support Consultant (CISC) and an NNGO, and District DTOs/DPOs are supported by a DISC team in each district; this system, while generally satisfactory in terms of basic design, should be strengthened to enhance the coordination between the CISC, the NNGO, and all the DISCs; (viii) The Government needs to regularly the status of rural transport services (public passenger transport and road freight transport) in rural roads project districts, and should anti-competitive activities arise through the operations of syndicates and cartels in the road transport sector, the Government and the DDCs will take appropriate action under existing legislation to curb such illegal activities; (ix) In many rural districts, tolling arrangements have been established on the rural roads project roads when completed, and tolls raised go towards maintenance of rural roads in the district. As appropriate, such tolling systems should be strengthened to further contribute to rural roads maintenance in the districts;
(x) It is often very difficult for the poorest rural people to get access to credit facilities for new economic initiatives. This might be addressed by allocating some small proportion of funds for rural roads projects to facilitating the enhanced availability of credit to the rural poor in the project areas
(xi) It is important to ensure the continued use of building groups (BGs) in the construction of district and village roads, depending on the nature of works. Earthwork in new road construction is often more suitable to be carried out by BGs, following the labor based equipment supported (LBES) approach, whereas upgrading road works like graveling the road surface can be more effectively carried out through the use of professional contractors (but employing local people where possible). However, the possibility of BGs’ involvement in the construction of other minor structural works, such as dry wall construction and gabion box filling, may also be explored, even (if necessary) by providing several days training to the BGs. This is important because the wages that BGs earn have a substantial impact on the livelihoods of rural people in the project areas;
(xii) The overall project implementation capacity of the DTOs and DPOs needs to be further strengthened in terms of: procurement, contract administration, quality assurance, construction supervision, and timely project completion;
(xiii) There remains a significant demand for skills training in the areas around rural roads projects. In particular, one innovation we recommend in this context is
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provision of driver training, with a focus on such training for women. Other such innovations could include training in the tourism management/hospitality industry, and in ICT; and
(xiv) We believe there is considerable merit in funding regional study tours for rural roads project staff both at the central and district levels, to observe firsthand the planning, design, construction, and monitoring procedures adopted in other countries for similar rural roads development initiatives.
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APPENDIX 1: PROBLEM TREE FOR RURAL ROADS SECTOR IN NEPAL
Rural poverty & exclusion
Low on-farm income Low non-farm EFFECTS generation & savings employment
Low agriculture High level Low literacy output morbidity – skill level
Limited or no access to facilities, services & goods CORE in remote rural areas PROBLEM
Low people and Lack of health and goods mobility education facilities
Unreliable and Low Lack of CAUSES expensive incomes reliable transport transport services infrastructure
Syndicate – Lack of Low Poor Low road Low Lack of funds Inadequate prevents regulation investments driving maintenance construction for transport planning competition to of RT in RT skills quality infrastructure grow among service services network transporters providers development
Lack of Low capacity funds at district level for O&M (Public & Private)
Decentralized Rural Infrastructure and Livelihoods Project II (DRILP II) (ADB TA No. 7573-NEP)
FINAL REPORT - Linked Document 2 – Project Administration Manual
Prepared for the Asian Development Bank and Government of Nepal
ANZDEC Limited in association with Consolidated Management Services Nepal (P) Ltd. August 2011
Contents
I. PROJECT DESCRIPTION 1
II. IMPLEMENTATION PLAN 3 A. Project Readiness Activities 3 B. Overall Project Implementation Plan 3
III. OVERALL PROJECT IMPLEMENTATION SCHEDULE 4
IV. PROJECT MANAGEMENT ARRANGEMENTS 5 A. Project Implementation Organizations – Roles and Responsibilities 5 B. Key Persons Involved in Implementation 7 C. Project Organization Structure 8
V. COSTS AND FINANCING 9 A. Detailed Cost Estimates by Expenditure Category 10 B. Allocation and Withdrawal of Loan Proceeds 12 C. Allocation and Withdrawal of Grant Proceeds 13 D. Detailed Cost Estimates by Financier 14 E. Detailed Cost Estimates by Outputs/Components 16 F. Detailed Cost Estimates by Year 18 G. Contract and Disbursement S-curve 19 H. Funds Flow Diagram 20
VI. FINANCIAL MANAGEMENT 22 A. Financial Management Assessment 22 B. Disbursement 22 C. Accounting 23 D. Auditing 23
VII. PROCUREMENT AND CONSULTING SERVICES 23 A. Advance Contracting and Retroactive Financing 23 B. Procurement of Goods, Works and Consulting Services 24 C. Procurement Plan 24 D. Consultant's Terms of Reference 27
VIII. SAFEGUARDS 28
IX. GENDER AND SOCIAL DIMENSIONS 28
X. PERFORMANCE MONITORING, EVALUATION, REPORTING AND COMMUNICATION 29 A. Project Design and Monitoring Framework 29 B. Monitoring 33 C. Reporting 34 D. Stakeholder Communication Strategy 34
XI. ANTICORRUPTION POLICY 35
XII. ACCOUNTABILITY MECHANISM 35
XIII. RECORD OF PAM CHANGES 35
APPENDIX 1: INDICATIVE LIST OF DRILP (ADDITIONAL FINANCING) ROAD SUBPROJECTS 36
APPENDIX 2: SELECTION OF ROAD SUBPROJECTS IN DRILP – ADDITIONAL FINANCING 37
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APPENDIX 3: CRITERIA FOR FUNDING COMMUNITY INFRASTRUCTURE SUBPROJECTS 38
APPENDIX 4: ROAD MAINTENANCE INITIATIVE IN DRILP – ADDITIONAL FINANCING 39
APPENDIX 5: TERMS OF REFERENCE FOR CONSULTING SERVICES 43
APPENDIX 6: TERMS OF REFERENCE FOR NATIONAL NGO 55
APPENDIX 7: MICROFINANCE ACCESS 60
APPENDIX 8: GENDER EQUALITY AND SOCIAL INCLUSION (GESI) ACTION PLAN 64 ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II Final Report – Linked Document 2: Project Administration Manual
Project Administration Manual Purpose and Process
1. The Project Administration Manual (PAM) describes the essential administrative and management requirements to implement the project on time, within budget, and in accordance with Government and Asian Development Bank (ADB) policies and procedures. The PAM should include references to all available templates and instructions either through linkages to relevant URLs or directly incorporated in the PAM.
2. The Department of Local Infrastructure Development and Agricultural Roads (DOLIDAR) are wholly responsible for the implementation of ADB financed projects, as agreed jointly between the borrower and ADB, and in accordance with Government and ADB‟s policies and procedures. ADB staff is responsible to support implementation including compliance by DOLIDAR of their obligations and responsibilities for project implementation in accordance with ADB‟s policies and procedures.
3. At Loan Negotiations the borrower and ADB shall agree to the PAM and ensure consistency with the Loan agreement. Such agreement shall be reflected in the minutes of the Loan Negotiations. In the event of any discrepancy or contradiction between the PAM and the Loan Agreement, the provisions of the Loan Agreement shall prevail.
4. After ADB Board approval of the project's report and recommendations of the President (RRP) changes in implementation arrangements are subject to agreement and approval pursuant to relevant Government and ADB administrative procedures (including the Project Administration Instructions) and upon such approval they will be subsequently incorporated in the PAM.
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I. PROJECT DESCRIPTION
1. The Decentralized Rural Infrastructure and Livelihoods Project II (the Project) will reduce rural poverty in 18 districts in very poor and remote hill and mountain regions of Nepal1 by widening access to social services and economic opportunities. The focus of the project is on: (i) rural incomes uplifting through increased employment, skills training, and improved access to credit for the rural poor; (ii) capacity building and decentralized governance, including addressing corruption concerns; and (iii) fostering rural transport connectivity and complementary community infrastructure investments. The underpinning thrust will be on labor based equipment supported (LBES)2 construction techniques to promote greater involvement of building groups (BGs) in construction activities which will boost local jobs. A comprehensive maintenance initiative will be introduced in all 18 project districts, which is broadly in line with the current pilot program being developed in some other districts of Nepal by development partners for a national Sector-Wide Approach (SWAp) for road maintenance for rural roads throughout the country.
2. Impact and Outcome. The impact of the Project will be reduced rural poverty in 18 very poor and remote hill and mountain districts of Nepal. The outcome of the Project will be widened access to social services and economic opportunities.
3. Outputs. The Project outcome will be achieved through the following outputs: (i) community development and rural livelihood restoration; (ii) capacity building and decentralized local governance; (iii) rural transport infrastructure; and (iv) project management services.
1. Community Development and Rural Livelihood Restoration
4. The Project will improve community infrastructure in the 18 districts. This will include 90 school buildings and health posts, 36 foot/mule/link trails, 54 water supply and irrigation schemes, 10 micro-hydropower, 8 rural market places, 10 ropeways, and other community infrastructure. These investments are capped at $120,000, or 20% of the cost of the road subproject, whichever is lower. Community infrastructure will be based on the demand and identified priorities in the impact zones of the road subprojects. Village Development Committees (VDCs) and local communities will identify their priority subprojects through comprehensive demand surveys. The District Implementation Support Consultant (DISC) teams will prepare the community infrastructure (including detailed design and due diligence studies) based on agreed criteria that include clear access benefit related to the road subproject, and at least 50% of target beneficiaries being women and members of disadvantaged groups. The community infrastructure subprojects will be typically implemented by local BGs. The VDC and community beneficiaries will contribute to the cost of the supplementary investments, mostly in the form of in-kind contributions of local building materials, or provision of land. Appendix 3 outlines the criteria for funding the supplementary investment schemes under DRILP.
1 The 18 project districts are Taplejung, Solukhumbu, Okhaldunga, Ramechhap, Gorkha, Lamjung, Baglung, Myagdi, Jajarkot, Dolpa, Jumla, Mugu, Humla, Kalikot, Bajhang, Bajura, Baitadi, and Darchula. 2 Labor based equipment supported (LBES) approach to road construction and maintenance means applying equipment support to construction tasks where the labor intensive approach has shown to be ineffective (e.g., rock excavation, transport of construction materials). The LBES will improve the quality of construction and result in more sustainable transport benefits. DRILP has, to a small degree, embraced equipment supported construction by purchasing rock drilling and rock splitters on some subprojects.
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5. The Project will support BGs to implement a savings scheme among its members to improve their living conditions or to invest in productive assets. An income uplifting micro- plan for each subproject will be prepared to mobilize savings from the employment for the use of new sets of skills acquired from skills training and the enhanced capacity of beneficiaries. The project will organize training that can contribute to a Level 1 certification by the Nepal Skills Testing Board (NSTB). Training needs assessment will be conducted to identify potential trainees with application of established eligibility criteria. The project will provide livelihood related skills training to 3,000 beneficiaries from the project impact zones, of which at least -40% are women and 60%, are from poor and excluded groups. The social awareness raising training will be provided to 9,000 persons, of whom 80% are women, poor and from excluded groups. The focus of awareness training will be on HIV/AIDS prevention, good nutrition, health and sanitation, and general health and safety concerns in poor rural populations. The target of awareness-raising programs will be mostly women and poor disadvantaged groups. In nine pilot districts, the project will work with existing savings and credit groups, and assist BGs willing to form themselves into formal Savings and Credit Cooperatives (SCCs) and facilitate their access to credit from existing institutional suppliers.
2. Capacity Building and Decentralized Local Governance
6. The Project will further develop the project management and implementation capacity of DOLIDAR, particularly the Project Coordination Unit (PCU), and the district administrative and technical offices through the process of “learning by doing”. In 9 selected districts where microfinance access will be undertaken the district will engage suitably qualified Local NGOs for facilitating microfinance access. A national NGO (NNGO) will be contracted to supervise and monitor the community mobilization and social development activities in the districts. The NNGO will also be responsible for the conduct of baseline, outcome, and end-of-project surveys and reporting. Regional study tours will be designed and undertaken for 15 central and 72 district officers to further enhance the learning experiences.
3. Rural Transport Infrastructure
7. The Project will improve 260 km of rural roads in the 18 districts (200 km new and 60 km upgrading). It will ensure improved quality of rural roads that will be built in terms of design and construction approach. The design phase of sub-projects will consider the impact of climate change which includes avoiding unstable slopes, high risk soil erosion prone areas and landslide areas, and water logged areas near streams; strictly implementing slope stability measures and robust road drainage systems; graveling the road in high risk areas; using more and better maintenance approaches; and encouraging community plantations. 1,200 km of rural roads will be fully maintained in the 18 districts and 6,500 m of trail bridges will be constructed. The implementation of the road sub-projects will employ labor-based equipment-supported (LBES) methods, and works performed by Building Groups (BGs) will be promoted over construction by contractors. Only those civil works that cannot be executed by the communities may be awarded on the basis of local competitive bidding to contractors.
8. The Project will provide direct support to road maintenance programs at the district levels in accordance with the pilot program being supported by development partners toward a SWAp for maintenance of rural roads throughout the country. To qualify for the maintenance grant under the Project, districts will have to clearly allocate the road maintenance function to a suitable person as District Maintenance Officer (DMO) in DTO‟s office, prepare an inventory of all district roads, conduct annual road condition surveys and prepare annual road maintenance plans. The Project will provide technical support to the districts to enable them to qualify for the annual maintenance grants. The maintenance
3 ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II Final Report – Linked Document 2: Project Administration Manual support will focus on providing routine and periodic maintenance on district roads (largely earthen and gravel) that are of maintainable standard. Routine maintenance will be delivered by length-persons who will be sourced from the impact zone of the road being maintained and employed directly by the districts, further promoting employment generation in the districts. A system of toll collection will be piloted in nine districts to augment road maintenance funds.
4. Project Management Services
9. Technical support to project implementation will be provided through a Central Implementation Support Consultant (CISC) and District Implementation Support Consultant (DISCs) in each of the 18 project districts. Suitable vehicles will be provided to each District Project Office (DPO) to improve implementation performance. A common financial management system will be developed for the Ministry of Local Development (MLD), the District Development Committees (DDCs) and DOLIDAR for improved reporting of project financial accounts.
II. IMPLEMENTATION PLAN
A. Project Readiness Activities
Sept. Oct. Nov. Dec. Jan. Feb. Who Indicative Activities 2011 2011 2011 2011 2012 2012 responsible Advance contracting actions DOLIDAR Retroactive financing actions DOLIDAR Re-establish project DOLIDAR implementation arrangements ADB Board approval ADB Loan signing ADB Loan effectiveness ADB
B. Overall Project Implementation Plan
10. The Project will be implemented over five years. Implementation will begin in January 2012. Initial activities will include filling any vacant PCU positions, recruiting consultants, selecting a national and local NGOs, beginning social mobilization in the districts, establishing a project performance monitoring system at DOLIDAR, and continuing to finalize the project preparation of road subprojects to be implemented from January 2012, completing any required baseline surveys, and procuring essential equipment. The loan-use period will terminate on 31 December 2016. The Government will not begin any ADB- financed civil works construction until after the implementation consultants have been appointed; land and rights to land, free of encumbrances, are available for construction; and IEE, IPPF and RP approved. Further required compensation payments should have been completed for all resident land owners. For absentee land owners, honest efforts to contact them should be documented, and where payments cannot be made to a designated alternate (such as a relative) with the land owner‟s consent, such payments may be held in trust by a local bank.
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III. OVERALL PROJECT IMPLEMENTATION SCHEDULE
0 Year 1 Year 2 Year 3 Year 4 Year 5 Activities 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 Project start-up PCU term extended; Project Coordinator re-appointed Subprojects and supplementary investments, and road maintenance Planning and design of rural roads subprojects Planning and design of trail bridges subprojects Environmental and social safeguards planning for all road subprojects Implementation of road subprojects and monitoring of safeguards plans Support to road condition surveys & maintenance planning in the districts Support to maintenance of rural roads in 18 project districts Planning and design of community infrastructure Implementation and monitoring of community infrastructure subprojects Income generation capacity Recruitment of a national training provider (livelihoods training) Recruitment of local NGOs in the districts Skills training to improve income-generating capacity Awareness raising training (on general concerns) Support to 9 districts for microfinance access Capacity building at central and district levels Recruitment of CISC and DISCs; support to project implementation Recruitment of ADB individual national consultants Procurement of vehicles and equipment; contracting of surveys & studies Recruitment of a national NGO to support project implementation Study tours for central and district staff CISC = Central Implementation Support Consultant; DISC = District Implementation Support Consultant; NGO = non government organization; PCU = Project Coordination Committee
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IV. PROJECT MANAGEMENT ARRANGEMENTS
A. Project Implementation Organizations – Roles and Responsibilities
1. National Level a. Executing Agency
11. DOLIDAR will be the Project Executing Agency (EA), responsible for overall project coordination, management, and implementation. Its function is to provide national direction in the rural infrastructure sub-sector. Technical and project management skills of DOLIDAR have developed substantially since its formation, through support from ADB and other development partners, and through its experience of managing a number of rural infrastructure projects.
b. Project Steering Committee
12. The Ministry of Local Development (MLD) has reconstituted existing steering committees to form a joint project steering committee (PSC) for all development partners‟ rural transport infrastructure projects, in an integrated sector-wide approach. The PSC shall meet whenever necessary, but not less than once a year to (i) review progress under the Project; (ii) resolve policy issues; (iii) coordinate sector activities; and (iv) guide DOLIDAR. The PSC will be chaired by the Secretary of MLD, and will include the following as members: Director General, DOLIDAR; Deputy Director General, DOLIDAR; Project Coordinator, PCU, DOLIDAR; Representative, Ministry of Finance; Representative, DDCs; and Representatives of donors agencies.
c. Project Coordination Unit
13. The PCU, established within DOLIDAR in Kathmandu, shall be responsible for (i) detailed planning of project implementation; (ii) guiding and monitoring DDCs that participate in the project; (iii) allocating and disbursing project funds in accordance with mechanisms and processes established in the Borrower‟s Financial and Procurement Acts and Regulations, 2064 (2008); (iv) liaising with other donor-funded projects in the rural infrastructure sector on day-to-day implementation matters; (v) preparing consolidated annual work plans; (vi) ensuring satisfactory implementation of the gender equality and social inclusion (GESI) action plan (Appendix 8), environmental assessment review framework (EARF), the resettlement framework (RF) and indigenous peoples plan framework (IPPF); and (vii) preparing necessary progress reports as well as the project completion report. The existing Central Implementation Support Consultant (CISC) team which has been engaged on DRILP will provide technical services and advice to the PCU. A National NGO (NNGO) will be engaged to support and advice PCU in social development and gender and social inclusion related issues.
2. District Level 14. At the district level, project implementation will be the responsibility of DPOs within the DTO of each DDC. The DPO will prepare annual work programs based on agreed subprojects, and ensure that land acquisition and environmental procedures are completed on time before construction. Road subprojects will be planned and overseen by the district road coordination committee (DRCC), which is effectively a DDC subcommittee. The DPO will arrange the procurement of appropriate services and community-level training, and will supervise and monitor works implementation.
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15. The DDC will form the District Rural Road Maintenance Committee (DRRMC) to manage rural road maintenance. The DRRMC will mobilize local resources into the rural road maintenance fund and prioritize maintenance works on roads in accordance with the Annual Road Maintenance Plan (ARMP). The DRRMC will monitor and review maintenance activities and report findings to the DDC. The chair of the DRRMC will be a representative of the DDC. The committee will comprise representatives from industry and commerce, road users and the DTO. The DRRMC will establish at least one Road Maintenance Users‟ Committee (RMUC) for each road to be maintained. The RMUC will implement road maintenance activities. The committee will consist of 9 to 11 members with representation from road users, minorities and women from the vicinity of the road.
16. A DISC team will be provided in each district to assist the DPO/DTO, who in turn report to the LDO/DDC. The DISC will promote participation by local communities and raise awareness of the opportunities available to local communities from the project activities. The DISC will seek to optimize the social development benefits and assist in the engineering design, construction supervision and quality control of subprojects. The DISC teams will report to the CISC, especially in regard to project performance and financial reporting, technical guidance, and for additional specialist back up resources. SDC will fund a total of eight (8) DISC teams and ADB will fund 18 DISC teams. The CISC will provide overall technical guidance and back-up technical expertise to all the DISC teams in the 18 project districts.
17. Village works and road construction committees (VWRCCs) will form the BGs in each VDC area, and monitor implementation. The DPO will also coordinate (i) application for, and selection of, possible supplementary investments in the VDC areas in subproject areas; and (ii) implementation through local NGOs of livelihood-enhancement activities using intensive social mobilization. The DISC, which consists of technical and social personnel to cover technical issues and to undertake social mobilization and assist BGs will be engaged by, and support, the DPO. DOLIDAR shall ensure that at all times during project implementation, the DPO established within the district technical office of each DDC, shall comprise a full-time engineer, sufficient overseers, and an accountant.
Project implementation Management Roles and Responsibilities organizations 1. Executing agency DOLIDAR Responsible for overall project coordination, management, and implementation Provide national direction in the rural infrastructure sub-sector 2. Implementing agencies DDCs Responsible for subproject planning, design and DTOs implementation DPOs Monitoring of EMPs, RPs, IPPs and GESI action plan 3. Project specific management body PCU Detailed planning of project implementation; Guiding and monitoring the DDCs that participate in the project; Allocating and disbursing project funds in accordance with mechanisms and processes established in the - Financial Acts and Regulations, 2064 (2008); Liaising with other donor-funded projects in the rural infrastructure sector on day-to-day implementation matters; Preparing consolidated annual work plans; Ensuring satisfactory implementation of the gender action plan and the resettlement frameworks and plans; and Preparing necessary progress reports as well as the project
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completion report 4. Project Steering Review project progress Committee Resolve policy issues Coordinate sector activities Guide DOLIDAR 5. Others (incl. external agencies) ADB Financing and project supervision OFID Co-financing SDC Co-financing
B. Key Persons Involved in Implementation
Executing Agency Department of Local Mr. Dhan Bdr. Tamang Infrastructure Development and Director General, DOLIDAR Agricultural Roads (DOLIDAR) Jawalakhel, Lalitpur Tel: +977 1 5000 107 Email: [email protected] Mr. Pawan Kumar Shrestha Project Coordinator, DRILP, DOLIDAR Jawalakhel, Lalitpur Tel: +977 1 5000 102 Email: [email protected] ADB Division Director Mr. Takashi Matsuo Director, SAER South Asia Department Asian Development Bank 6 ADB Avenue Mandaluyong City, 1550, Metro Manila, Philippines Tel: +632 632-5579 Email: [email protected]
Mission Leader Mr. Rezaul K Khan Natural Resources and Agriculture Economist South Asia Department Asian Development Bank 6 ADB Avenue Mandaluyong City, 1550, Metro Manila, Philippines Tel: +632 632 4846 Email: [email protected]
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C. Project Organization Structure
NPC, MOF, Ministry of Local Development ADB, SDC, NRB, FCGO (MLD) OFID
Project Steering Committee (PSC)
Department of Local infrastructure Development and Agricultural Roads (DOLIDAR) Director General
National Non Central Project Coordination Unit (PCU) Governmental Implementation Project Coordinator, DOLIDAR Organization Support Consultant (NNGO) (CISC)
District Implementation District Development Committees (DDCs) Support Consultants District Technical Offices (DTOs) (DISCs) District Project Office (DPOs)
District Road District Rural Road Coordination Maintenance Committees (DRCCs) Committees (DRRMCs)
Road Maintenance Users Committees (RMUCs)
Village Development
Committees (VDCs)
Village Works & Road Construction Committees (VWRCCs)
Building Groups (BCs) / Contractors
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V. COSTS AND FINANCING
18. The Project is estimated to cost $66.45 million, including taxes and duties of $4.56 million. The investment plan is summarized in Table 1.
Table 1: Project Investment Plan ($ million) Additional Current Financing Total Project a Item Amount A. Base Costb 1 Community development and rural livelihood restoration 14.60 14.44 29.04 2 Capacity building and decentralized governance 1.30 1.73 3.03 3 Rural transport infrastructure 32.00 36.64 68.64 4 Project management services 10.70 7.18 17.88 Subtotal (A) 58.60 59.99 118.59
B. Contingenciesc 8.50 4.88 13.38
C. Financing Charges During Implementation 1.20 1.58 2.78 Total (A+B+C) 68.30 66.45 134.75 a Includes taxes and duties of $4.56 to be financed from the government resources. b In mid-2011 prices (additional financing) c For additional financing, physical contingencies computed at 10% for civil works; 10% for field research and development, training, surveys, and studies, and 20% for land acquisition and resettlement. Price contingencies computed at 0% for 2012 and 2013, and 0.5% thereafter on foreign exchange costs and 7% for 2012, 6% for 2013, and 5.5% thereafter on local currency costs; includes provision for potential exchange rate fluctuation under the assumption of a purchasing power parity exchange rate. Source: ADB Staff estimates Table 2: Financing Plan Current Additional Total Share of The Government has requested a loan of $18Project million andFinancing a grant of $7 million from ADB‟s ($ million) Total (%) SpecialSource Funds Resources to help finance the($ million) project. The($ million) loan will have a 32-year term, includinAsian Developmentg a grace Bank period Loan of 8 years, an annual 40.00interest rate of18.00 1.0% during58.00 the grace43.04 period and 1.5% thereafter, and such other terms and conditions set forth in the draft loan and Asian Development Bank Grant 7.00 7.00 5.20 project agreements. The government has also requested a loan of $20 million from the OPECOPEC Fund Fund for forInternational International Development Development (OFID) to help finance20.00 the20.00 project. The14.84 loan will haveSwiss Agency a 20-year for Development term, including and Cooperation a grace period7.90 of 5 years, and7.06 an annual14.96 interest11.10 rate of 2.25%GTZ (inclusive of a 1.0% service charge). The0.70 Government of Switzerland0.70 will0.52 provide parallelGovernment grant co-financing through SDC for financial14.70 cooperation13.29 of $7.0627.99 million equivalent,20.77 toLocal support Government implementation at the part of central4.20 consulting team as well4.20 as part of3.12 district consultingBeneficiaries support team in the districts including0.80 for capacity 1.10development.1.90 The 1.41financing plan is in Table 2. Total 68.30 66.45 134.75 100.00
Source: Staff estimates
10 ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II Final Report – Linked Document 2: Project Administration Manual
A. Detailed Cost Estimates by Expenditure Category
% of Item (NRs Million) ($ Million) Total Base Foreign Local Total Foreign Local Total Costs
A. Investment Costs 1. Civil Works a. Road Infrastructure 154.6 2,188.2 2,342.9 2.21 31.26 33.47 56 b. Supplementary Investments 18.5 261.5 280.0 0.26 3.74 4.00 7 c. Road Maintenance - 105.0 105.0 - 1.50 1.50 3 Subtotal (1) 173.1 2,554.7 2,727.9 2.47 36.50 38.97 65 2. Equipment and Vehicles a. ADB financed Equipment - 70.0 70.0 - 1.00 1.00 2 Vehicles 30.2 70.6 100.8 0.43 1.01 1.44 2 Subtotal (a) 30.2 140.6 170.8 0.43 2.01 2.44 4 b. SDC financed Equipment - 0.6 0.6 - 0.01 0.01 - Vehicles 9.3 21.7 31.0 0.13 0.31 0.44 1 Subtotal (b) 9.3 22.2 31.5 0.13 0.32 0.45 1 Subtotal (2) 39.5 162.8 202.3 0.56 2.33 2.89 5 3. Training and Study Tours a. Beneficiary Training - 180.0 180.0 - 2.57 2.57 4 b. Study Tours - 20.0 20.0 - 0.29 0.29 - Subtotal (3) - 200.0 200.0 - 2.86 2.86 5 4. Consulting Services a. SDC Financed International Consultants - 93.8 93.8 - 1.34 1.34 2 National Consultants - 80.9 80.9 - 1.16 1.16 2 Subtotal (a) - 174.7 174.7 - 2.50 2.50 4 b. ADB Financed National Consultants - 14.5 14.5 - 0.21 0.21 - c. Local Travel - 18.4 18.4 - 0.26 0.26 - Subtotal (4) - 207.5 207.5 - 2.96 2.96 5 5. Technical Services a. SDC Supported District Consultant Services 21.5 193.5 215.0 0.31 2.76 3.07 5 b. ADB Supported District Consultant Services 26.9 241.9 268.7 0.38 3.46 3.84 6
11 ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II Final Report – Linked Document 2: Project Administration Manual
% of Item (NRs Million) ($ Million) Total Base Foreign Local Total Foreign Local Total Costs c. ADB Supported NGOs 4.7 42.2 46.9 0.07 0.60 0.67 1 Subtotal (5) 53.1 477.6 530.6 0.76 6.82 7.58 13 6. Land Acquisition/Resettlement - 96.2 96.2 - 1.37 1.37 2 7. Surveys and Studies a. ADB financed - 21.0 21.0 - 0.30 0.30 1 b. SDC financed - 14.0 14.0 - 0.20 0.20 - Subtotal (7) - 35.0 35.0 - 0.50 0.50 1 8. Support Staff - 45.5 45.5 - 0.65 0.65 1 9. SDC Administration - 14.0 14.0 - 0.20 0.20 - Subtotal (A) 265.7 3,793.3 4,059.0 3.80 54.19 57.99 97 B. Recurrent Costs 1. Supervision and Implementation costs including O&M 105.0 35.0 140.0 0.50 1.50 2.00 3 Subtotal (B) 105.0 35.0 140.0 0.50 1.50 2.00 3 Total Base Costs 300.7 3,898.3 4,199.0 4.30 55.69 59.99 100 C. Contingencies 1. Physical 20.3 310.9 331.2 0.29 4.44 4.73 8 2. Price 29.3 464.9 494.2 0.01 0.14 0.15 - Subtotal (C) 49.6 775.8 825.4 0.30 4.58 4.88 8 D. Financing Charges During Implementation 1. Interest During Implementation 122.4 - 122.4 1.58 - 1.58 3 Subtotal (D) 122.4 - 122.4 1.58 - 1.58 3 Total Project Costs (A+B+C+D) 472.7 4,673.9 5,146.7 6.18 60.27 66.45 111
12 ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II Final Report – Linked Document 2: Project Administration Manual
B. Allocation and Withdrawal of Loan Proceeds
Category ADB Financing Amount Allocated Percentage and Basis for ($) Withdrawal from the Loan Number Item Category Subcategory Account
1 Civil Works 12,312,000
a. Road Infrastructure 8,640,000 25% of total expenditure
b. Supplementary Investments 2,165,000 54% of total expenditure
c. Road maintenance 1,507,000 100% of total expenditure
2 Training 1,175,000 45.5% of total expenditure Technical Services: NGO 3 support 670,000 100% of total expenditure* Land Acquisition/ 100% of eligible 4 Resettlement 481,000 expenditure**
5 Surveys and Studies 300,000 100% of expenditure* 4 Financial charges during implementation 1,582,000 100% of total expenditure
5 Unallocated 1,480,000
Total 18,000000 * Excluding local taxes and duties ** Includes rehabilitation support, income generation and life skills, and community support costs
13 ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II Final Report – Linked Document 2: Project Administration Manual
C. Allocation and Withdrawal of Grant Proceeds
Category ADB Financing Amount Allocated Percentage and Basis ($) for Withdrawal from the Number Item Category Subcategory Loan Account
1 Equipment and Vehicles 1,426,000
a. Equipment 850,000 100% of total expenditure*
b. Vehicles 576,000 100% of total expenditure*
2 Training and Study Tours 1,260,000
a. Training 974,000 37.7% of total expenditure
b. Study Tours 285,000 100% of total expenditure*
3 National Consultants 207,000 100% of total expenditure* Technical Services: District 4 Implementation Support 3,839,000 100% of total expenditure*
5 Unallocated 268,000
Total 7,000,000 * Excluding local taxes and duties
14 ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II Final Report – Linked Document 2: Project Administration Manual
D. Detailed Cost Estimates by Financier
OPEC Fund for Swiss Agency for Asian Development International Development and VDCs and Item Bank ADB ADF Grant Development Cooperation Beneficiaries The Government Total % of Cost % of Cost % of Cost % of Cost % of Cost % of Cost Amount Category Amount Category Amount Category Amount Category Amount Category Amount Category Amount A. Investment Costs 1. Civil Works a. Road Infrastructure 8.62 25.0 - - 18.12 52.6 - - - - 7.74 22.4 34.48 b. Supplementary Investments 2.16 54.0 ------1.00 25.0 0.84 21.0 4.00 c. Road Maintenance 1.50 100.0 ------1.50 Subtotal (1) 12.28 30.7 - - 18.12 45.3 - - 1.00 2.5 8.58 21.5 39.98 2. Equipment and Vehicles a. ADB financed Equipment - - 0.85 85.0 ------0.15 15.0 1.00 Vehicles - - 0.58 40.0 ------0.86 60.0 1.44 Subtotal (a) - - 1.43 58.4 ------1.01 41.6 2.44 b. SDC financed Equipment ------0.01 100.0 - - - - 0.01 Vehicles ------0.18 40.0 - - 0.27 60.0 0.44 Subtotal (b) ------0.19 41.1 - - 0.27 58.9 0.45 Subtotal (2) - - 1.43 49.3 - - 0.19 6.4 - - 1.28 44.3 2.89 3. Training and Study Tours a. Training 1.17 45.5 0.97 37.7 ------0.43 16.8 2.57 b. Study Tours - - 0.29 100.0 ------0.29 Subtotal (3) 1.17 41.0 1.25 43.9 ------0.43 15.1 2.86 4. Consulting Services a. SDC Financed International Consultants ------1.34 100.0 - - - - 1.34 National Consultants ------1.16 100.0 - - - - 1.16 Subtotal (a) ------2.50 100.0 - - - - 2.50 b. ADB Financed National Consultants - - 0.21 100.0 ------0.21 c. Local Travel ------0.26 100.0 - - - - 0.26 Subtotal (4) - - 0.21 7.0 - - 2.76 93.0 - - - - 2.96 5. Technical Services a. SDC Supported District Consultant Services ------3.07 100.0 - - - - 3.07 b. ADB Supported District Consultant Services - - 3.84 100.0 ------3.84 c. ADB Supported NGOs 0.67 100.0 ------0.67 Subtotal (5) 0.67 8.8 3.84 50.6 - - 3.07 40.5 - - - - 7.58 6. Land Acquisition/Resettlement 0.48 35.0 ------0.89 65.0 1.37
15 ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II Final Report – Linked Document 2: Project Administration Manual
OPEC Fund for Swiss Agency for Asian Development International Development and VDCs and Item Bank ADB ADF Grant Development Cooperation Beneficiaries The Government Total % of Cost % of Cost % of Cost % of Cost % of Cost % of Cost Amount Category Amount Category Amount Category Amount Category Amount Category Amount Category Amount 7. Surveys and Studies a. ADB financed 0.30 100.0 ------0.30 b. SDC financed ------0.20 100.0 - - - - 0.20 Subtotal (7) 0.30 60.0 - - - - 0.20 40.0 - - - - 0.50 8. Support Staff ------0.65 100.0 - - - - 0.65 9. SDC Administration ------0.20 100.0 - - - - 0.20 Subtotal (A) 14.89 25.7 6.73 11.6 18.12 31.3 7.06 12.2 1.00 1.7 10.18 17.6 57.99 B. Recurrent Costs 1. Supervision and Implementation Costs including O&M ------2.00 100.0 2.00 Subtotal (B) ------2.00 100.0 2.00 Total Base Costs (A+B) 14.89 24.8 6.73 11.2 18.12 30.2 7.06 11.8 1.00 1.7 12.18 20.3 59.99 C. Contingencies 1.52 31.1 0.27 5.6 1.88 38.5 - - 0.10 2.1 1.11 22.7 4.88 D. Financing Charges During Implementation 1.58 100.0 ------1.58 Total Project Cost (A+B+C+D) 18.00 27.1 7.00 10.5 20.00 30.1 7.06 10.6 1.10 1.7 13.29 20.0 66.45 % Total Project Cost 27.08% 10.53% 30.10% 10.63% 1.66% 20.00% 100%
16 ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II Final Report – Linked Document 2: Project Administration Manual
E. Detailed Cost Estimates by Outputs/Components
Rural Transport Supplementary Item Infrastructure Network Community Income Generating Central and District Extended and Infrastructure Capacity of Rural Project Management Maintained Provided Households Enhanced Capacity Enhanced
Total % of Cost % of Cost % of Cost % of Cost Cost Amount Category Amount Category Amount Category Amount Category
A. Investment Costsa 1. Civil Works a. Road Infrastructure 33.47 33.47 100.00 ------b. Supplementary Investments 4.00 - - 4.00 100.00 - - - - c. Road Maintenance 1.50 1.50 100.00 ------Subtotal (1) 38.97 34.97 89.74 4.00 10.26 - - - - 2. Equipment and Vehicles a. ADB financed Equipment 1.00 ------1.00 100.00 Vehicles 1.44 ------1.44 100.00 Subtotal (a) 2.44 ------2.44 100.00 b. SDC financed Equipment 0.01 ------0.01 100.00 Vehicles 0.44 ------0.44 100.00 Subtotal (b) 0.45 ------0.45 100.00 Subtotal (2) 2.89 ------2.89 100.00 3. Training and Study Tours a. Training 2.57 - - - - 2.57 100.00 - - b. Study Tours 0.29 ------0.29 100.00 Subtotal (3) 2.86 - - - - 2.57 90.02 0.29 9.98 4. Consulting Services a. SDC Financed International Consultants 1.34 ------1.34 100.00 National Consultants 1.16 ------1.16 100.00 Subtotal (a) 2.50 ------2.50 100.00 b. ADB Financed National Consultants 0.21 ------0.21 100.00 c. Local Travel 0.26 ------0.26 100.00
17 ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II Final Report – Linked Document 2: Project Administration Manual
Rural Transport Supplementary Item Infrastructure Network Community Income Generating Central and District Extended and Infrastructure Capacity of Rural Project Management Maintained Provided Households Enhanced Capacity Enhanced
Total % of Cost % of Cost % of Cost % of Cost Cost Amount Category Amount Category Amount Category Amount Category Subtotal (4) 2.96 ------2.96 100.00 5. Technical Services a. SDC Supported District Consultant Services 3.07 ------3.07 100.00 b. ADB Supported District Consultant Services 3.84 ------3.84 100.00 c. ADB Supported NGOs 0.67 - - - - 0.27 40.30 0.40 59.70 Subtotal (5) 7.58 - - - - 0.27 3.56 7.31 96.44 6. Land Acquisition/Resettlement 1.37 1.37 100.00 ------7. Surveys and Studies a. ADB financed 0.30 0.30 100.00 ------b. SDC financed 0.20 ------0.20 100.00 Subtotal (7) 0.50 0.30 60.00 - - - - 0.20 40.00 8. Support Staff 0.65 ------0.65 100.00 9. SDC Administration 0.20 ------0.20 100.00 Subtotal (A) 57.99 36.64 63.19 4.00 6.90 2.84 4.90 14.50 25.01 B. Recurrent Costs 1. Operation and maintenance 2.00 ------2.00 100.00 Subtotal (B) 2.00 ------2.00 100.00 Total Base Costs (A+B) 59.99 36.64 61.09 4.00 6.67 2.84 4.74 16.50 27.51 C. Contingencies 1. Physicalb 4.73 3.80 80.35 0.40 8.45 0.26 5.43 0.27 5.76 2. Pricec 0.15 0.13 84.75 0.01 7.19 0.01 7.86 0.00 0.20 Subtotal (C) 4.88 3.93 80.49 0.41 8.41 0.27 5.51 0.27 5.59 D. Financing Charges During Implementation 1. Interest During Implementationd 1.58 1.47 92.84 0.07 4.19 0.04 2.26 0.01 0.70 Subtotal (D) 1.58 1.47 92.84 0.07 4.19 0.04 2.26 0.01 0.70 66.45 42.04 63.27 4.48 6.74 3.15 4.73 16.78 25.26 a In mid-2011 prices. b Computed at 10% for civil works; 10% for field research and development, training, surveys and studies; and 20% for land acquisition and resettlement. c Computed at 0% for 2012 and 2013, and 0.5% thereafter on foreign exchange costs and 7% for 2012, 6% for 2013, and 5.5% thereafter on local currency costs; includes provision for potential exchange rate fluctuation under the assumption of a purchasing power parity exchange rate. d Interest during construction has been computed at 1% per annum for the ADB loan and 2.25% per annum for the OFID loan.
18 ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II Final Report – Linked Document 2: Project Administration Manual
F. Detailed Cost Estimates by Year
Total Cost by Year ($million) ($million) 2012 2013 2014 2015 2016
A. Investment Costs 1. Civil Works a. Road Infrastructure 33.47 6.01 9.31 8.33 6.56 3.26 b. Supplementary Investments 4.00 1.00 1.00 1.00 1.00 - c. Road Maintenance 1.50 0.30 0.30 0.30 0.30 0.30 Subtotal (1) 38.97 7.31 10.61 9.63 7.86 3.56 2. Equipment and Vehicles a. ADB financed Equipment 1.00 0.50 0.50 - - - Vehicles 1.44 1.44 - - - - Subtotal (a) 2.44 1.94 0.50 - - - b. SDC financed Equipment 0.01 0.01 - - - - Vehicles 0.44 0.44 - - - - Subtotal (b) 0.45 0.45 - - - - Subtotal (2) 2.89 2.39 0.50 - - - 3. Training and Study Tours a. Training 2.57 0.26 0.51 0.77 0.77 0.26 b. Study Tours 0.29 0.06 0.11 0.11 - - Subtotal (3) 2.86 0.31 0.63 0.89 0.77 0.26 4. Consulting Services a. SDC Financed International Consultants 1.34 0.26 0.32 0.38 0.38 - National Consultants 1.16 0.44 0.24 0.24 0.24 - Subtotal (a) 2.50 0.70 0.56 0.62 0.62 - b. ADB Financed National Consultants 0.21 0.05 0.05 0.05 0.05 - c. Local Travel 0.26 0.07 0.07 0.07 0.07 - Subtotal (4) 2.96 0.82 0.68 0.73 0.73 - 5. Technical Services a. SDC Supported District Consultant Services 3.07 0.77 0.77 0.77 0.77 - b. ADB Supported District Consultant Services 3.84 0.96 0.96 0.96 0.96 - c. ADB Supported NGOs 0.67 0.15 0.21 0.17 0.15 - Subtotal (5) 7.58 1.87 1.94 1.90 1.87 - 6. Land Acquisition/Resettlement 1.37 1.37 - - - - 7. Surveys and Studies a. ADB financed 0.30 0.10 0.10 0.10 - - b. SDC financed 0.20 0.20 - - - - Subtotal (7) 0.50 0.30 0.10 0.10 - - 8. Support Staff 0.65 0.15 0.15 0.17 0.17 - 9. SDC Administration 0.20 0.04 0.05 0.05 0.05 - Subtotal (A) 57.99 14.58 14.67 13.46 11.46 3.82 B. Recurrent Costs 1. Supervision and Implementation Costs including O&M 2.00 0.40 0.40 0.40 0.40 0.40 Subtotal (B) 2.00 0.40 0.40 0.40 0.40 0.40 Total Base Costs (A+B) 59.99 14.98 15.07 13.86 11.86 4.22 C. Contingencies 1. Physical 4.73 1.24 1.18 1.06 0.86 0.38 2. Price 0.15 0.00 0.00 0.03 0.07 0.05 Subtotal (C) 4.88 1.24 1.18 1.09 0.93 0.43 D. Financing Charges During Implementation 1.58 0.03 0.16 0.33 0.48 0.59 Total Project Costs (A+B+C+D) 66.45 16.25 16.41 15.28 13.27 5.24
% of Total Project Costs 100% 24% 25% 23% 20% 8%
19 ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II Final Report – Linked Document 2: Project Administration Manual
G. Contract and Disbursement S-curve
ADB Loan Financing
ADB Grant Financing
20 ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II Final Report – Linked Document 2: Project Administration Manual
H. Funds Flow Diagram
19. Planning Process for Allocation of Funds. The fiscal year in Nepal runs from 16 July to 15 July of the following year. The budget book (red book) must be available by 15 July for expenditure to be made against the budget heads. Due to the present political situation, the budget of the current fiscal year was approved by Parliament after a delay of about four months. As a result DRILP faced considerable difficulty is meeting its payments. The preparation of the Budget commences around November each year headed by the National Planning Commission (NPC). NPC holds meetings with the Ministry of Finance (MOF) and representatives from each Ministry where budget ceilings for each Ministry are discussed and agreed. The Ministries call for internal meetings at the center and districts to set ceilings for these activities. There is a certain degree of decentralization in the planning process as the DDCs can negotiate budget allocations for their programs. Of particular relevance to DRILPs the District Transport Master Plan (DTMP) which the DDC are expected to prepare and update. Furthermore, a Plan of Action (PoA) is prepared for each project on which budget ceilings are fixed and funds released on a trimester basis, i.e., one third of the annual requirement.
20. Authorization and release of funds. On approval of the budget by Parliament, MOF authorizes Ministries to release funds for capital and recurrent expenditures. The stipulated deadline for this authorization is within the first week of the fiscal year, i.e., by 22 July. The Ministries must in turn authorize their departments for the release of funds by the end of July. At the district level the letters of authorization must be submitted by the DDC to the DTCO. Upon receipt of the letter of authorization, DTCO credits the funds into the District Development Fund (DDF). The DDF is a non-operational account and funds are then transferred to the operational capital and recurrent accounts.
21. Funds disbursement, expenditure and replenishment. DRILP has an imprest account at the Nepal Rastra Bank (NRB) with accounts at NRB district branches or other government bank branches in the district. The project imprest account held at NRB Bank is replenished by the ADB based on the receipt of duly completed withdrawal applications and supporting SOE. SOE are prepared centrally at the PCU, by obtaining copies of payment documents from the districts.
22. The authorized signatories for DRILP at the DDC are the LDO and the DDC accountant. Therefore, each payment has to be approved by both. The demands on the LDOs time are certainly onerous. Given the current political situation in the county, the LDO is also the DDC Chairman as there is no elected Chairman. As such he / she is required to chair meetings and also various committees at the district level. There is evidence that some LDOs chair 30-40 such committees. This too results in delays of approving project expenditure. This issue has been highlighted in the Progress Reports of the Implementation Consultant as well as by the PCU. It is proposed that the DTO be the authorized signatory for DRILP activities as in the ADB funded Rural Reconstruction and Rehabilitation Sector Development Project (RRRSDP), where the financial authority for project activities has been delegated to the DTO instead of the LDO.
23. The consolidated SOE is prepared by the PCU from primary documents received from the district. The district SOE is also prepared at the PCU. The primary documents are photocopied and sent by the DDC accountant to the PCU. Since the PCU is not familiar with the transactions, they have to frequently contact the DDC accountant and seek clarifications. This process has resulted in delays in finalizing the SOE and as a result the replenishment of funds in the imprest account. This is further exacerbated since the DDC accountant handles all district level projects as well as routine DDC work.
21 ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II Final Report – Linked Document 2: Project Administration Manual
24. Treasury Single Account System (TSA). The TSA is being introduced to all districts from the next fiscal year, although it is currently being implemented by some districts on a pilot basis. Under the TSA, the DTCO makes payments directly to contractors / suppliers and the DDC and other district government offices submits payment requests to the DTCO. However, the experience from districts that have implemented the TSA is that DDC is exempted and it will apply to other government institutions in the district.
25. The funds flow structure of DRILP – Additional Financing will be similar to that of DRILP to date. Upon loan effectiveness an Imprest Account will be set up at the NRB and the ceiling of the Imprest Account will not exceed 6 months estimated expenditures. The statement of expenditure (SOE) procedure will be used for liquidation and replenishment of the Imprest Account (Figure 1).
Figure 1: Project Funds Flow Diagram
CENTRAL LEVEL DISTRICT LEVEL VILLAGE LEVEL
ADB
DTCO DDC (LDO)
Imprest Account
DTO
District Bank VWRCC
MoF (FCGO) DPO MLD DoLIDAR PSU Contractor DISC BG
CISC
Fund Flow Authorization / Approval Measurement / Reporting
22 ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II Final Report – Linked Document 2: Project Administration Manual
VI. FINANCIAL MANAGEMENT
A. Financial Management Assessment
26. Financial management system of the Ministry of Local Development (MLD) which oversees DOLIDAR, is assessed as generally satisfactory. Being a government Ministry, its financial reporting system is based on the ministry budget and the manner in which it is expended. The cash basis of accounting is used. MLD, with the assistance of an IT consultant has developed its own accounting system, which is also used by the DDC. The system has been in place for about five years and produces a cash book, budget sheet (by budget head to compare actual expenditure) and vouchers. The District Treasury Comptroller (DTCO) which is an office of the Financial Comptroller General (FCGO) in each district is the internal auditor of MLD. An external audit of MLD is carried out annually by the Office of Auditor General (OAG) of Nepal. The external auditor relies on the work of the DTCO who has done the internal audit.
27. DOLIDAR‟s financial management is likewise generally satisfactory. Its financial reporting system is aligned to the government system. The financial reporting system is based on Microsoft Excel for the cash book, budget sheet and vouchers. These formats have been agreed with OAG.
28. The MLD accounting system which is in operation in DDCs has not been shared with DOLIDAR. The current accounting staff are comfortable operating the spreadsheets, however a change of staff as a result of transfer would pose a problem in operation of the system. Also, since DOLIDAR is a department under MLD there should be standardization in accounting software used and all accounting officers should be trained in the use of such software.
29. DOLIDAR operates under the Treasury Single Account (TSA) system (recently implemented on a pilot basis) where all payments are made by the DTCO. The vouchers and other relevant documents are approved by DOLIDAR and sent to DTCO which processes the check in the name of the recipient. The experience of DOLIDAR is that the new TSA system has not resulted in undue delays in payments.
B. Disbursement
30. Planning The Loan proceeds including ADB administered co-financier funds will be disbursed in accordance with ADB‟s Loan Disbursement Handbook (2010, as amended from time to time), and detailed arrangements agreed upon between the Government and ADB.
31. Pursuant to ADB's Safeguard Policy Statement (2009) (SPS), ADB funds may not be applied to the activities described on the ADB Prohibited Investment Activities List set forth at Appendix 5 of the SPS. All financial institutions will ensure that their investments are in compliance with applicable national laws and regulations and will apply the prohibited investment activities list to subprojects financed by ADB.
32. A separate Imprest Account will be opened for the project at the MOF. The maximum ceiling of the Imprest Account will not at any time exceed the ADB financed expenditures to be paid from the imprest account over the next six months or 10% of the loan amount, whichever will be lower. The request for initial advance to the imprest account should be accompanied by an Estimate of Expenditure Sheet setting out the estimated expenditures for the first six months of project implementation and submission of evidence satisfactory to the ADB that the imprest account has been duly opened. For every liquidation and
23 ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II Final Report – Linked Document 2: Project Administration Manual replenishment request of the imprest account, the borrower will furnish to the ADB: (a) Statement of Account (Bank Statement) where the imprest account is maintained; and (b) an Imprest Account Reconciliation Statement (IARS) reconciling the above bank statement against DOLIDAR‟s records. The SOE records should be maintained and made readily available for review by ADB‟s disbursement and review mission or upon ADB‟s request for submission of supporting documents on a sampling basis, and for independent audit.
33. Before the submission of the first withdrawal application, DOLIDAR should submit to ADB sufficient evidence of the authority of the person(s) who will sign the withdrawal applications on behalf of the borrower, together with the authenticated specimen signatures of each authorized person. The minimum value per withdrawal application is US$100,000, unless otherwise approved by ADB. DOLIDAR is to consolidate claims to meet this limit for reimbursement and imprest account claims. Withdrawal applications and supporting documents will demonstrate, among other things that the goods, and/or services were produced in or from ADB members, and are eligible for ADB financing.
C. Accounting
34. The DOLIDAR will maintain separate project accounts and records by funding source for all expenditures incurred on the Project. Project accounts will follow international accounting principles and practices (or those prescribed by the Government's accounting laws and regulations3).
D. Auditing
35. The DOLIDAR will cause the detailed consolidated project accounts to be audited in accordance with International Standards on Auditing (and/or in accordance with the Government's audit regulations) by an auditor acceptable to ADB. The audited accounts will be submitted in the English language to ADB within six (or in special circumstances nine) months of the end of the fiscal year by the executing agency. The annual audit report will include a separate audit opinion on the use of the imprest accounts, SGIA, and the SOE procedures (as applicable). The Government and DOLIDAR have been made aware of ADB‟s policy on delayed submission, and the requirements for satisfactory and acceptable quality of the audited accounts. ADB reserves the right to verify the project's financial accounts to confirm that the share of ADB‟s financing is used in accordance with ADB‟s policies and procedures. For revenue generating projects only, ADB requires audited financial statements (AFS) for each executing and/or implementation agency associated with the project.
VII. PROCUREMENT AND CONSULTING SERVICES
A. Advance Contracting and Retroactive Financing
36. All advance contracting and retroactive financing will be undertaken in conformity with ADB‟s Procurement Guidelines (2010, as amended from time to time) (ADB‟s Procurement Guidelines)4 and ADB‟s Guidelines on the Use of Consultants (2010, as amended from time to time) (ADB‟s Guidelines on the Use of Consultants).5 The issuance of invitations to bid under advance contracting and retroactive financing will be subject to ADB approval. The borrower, MLD and DOLIDAR have been advised that approval of advance contracting and
3 Reference to Government laws/regulations to be added during loan processing. 4 Available at: http://www.adb.org/Documents/Guidelines/Procurement/Guidelines-Procurement.pdf 5 Available at: http://www.adb.org/Documents/Guidelines/Consulting/Guidelines-Consultants.pdf
24 ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II Final Report – Linked Document 2: Project Administration Manual retroactive financing does not commit ADB to finance the Project. Retroactive financing will be available only up to 20% of the ADB loan.
37. In order to expedite the project implementation, it is recommended that advance contracting be undertaken for selection of the Central Implementation Support Consultants (CISC) and District Implementation Support Consultants (DISC) teams. The steps to be concluded in advance are: (i) preparation of bidding documents, already prepared under DRILP by the PCU which can be used; (ii) bidding; and (iii) bid evaluation.
B. Procurement of Goods, Works and Consulting Services
38. All procurement of goods and works will be undertaken in accordance with ADB‟s Procurement Guidelines.
39. International Competitive Bidding (ICB), National Competitive Bidding (NCB), Community Procurement (CP) and Shopping (will be used. NCB will be used for the hire of contractors. CP will be used for the hire of Building Groups (BG) for basic civil works, as under DRILP. Before the start of any procurement ADB and the Government will review the public procurement laws of the central and state governments to ensure consistency with ADB‟s Procurement Guidelines. The bid documents already prepared under DRILP by the PCU can be used.
40. An 18-month procurement plan indicating threshold and review procedures, goods, works, and consulting service contract packages and national competitive bidding guidelines is in Section C.
41. All consultants and nongovernment organizations (NGOs) will be recruited according to ADB‟s Guidelines on the Use of Consultants.6 The terms of reference for all consulting services are detailed in Section D.
42. Project Procurement Thresholds. Except as the ADB may otherwise agree, the National Competitive Bidding (NCB) procedure will be used for civil works and goods below US$ 1,000,000 in value and local Shopping procedure will be used for procurement of works and goods less than US$ 100,000. Community Procurement (CP) will be used for hiring Building Groups up to a maximum of NRs 6 million.
43. ADB Prior or Post Review. Except as the ADB may otherwise agree, the following prior or post review procedures apply to review procedures and recruitment of consultants. As in the case of DRILP, prior review will be undertaken by the ADB Nepal Resident Mission (NRM).
C. Procurement Plan
Basic Data
Project Name: Decentralized Rural Infrastructure and Livelihoods Project II Country: Government of Nepal Executing Agency: Depart of Local Infrastructure Development and Agricultural Roads (DOLIDAR) Loan Amount: $ 18 million Loan Number: (To be determined) Grant Amount : $ 7.0 million Grant Number : (To be determined)
6 Checklists for actions required to contract consultants by method available in e-Handbook on Project Implementation at: http://www.adb.org/documents/handbooks/project-implementation/
25 ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II Final Report – Linked Document 2: Project Administration Manual
Date of First Procurement Plan: June 2011 Date of this Procurement Plan: June 2011 1. Procurement Method and Review Procedure
Procurement Method Prior or Post Comments Procurement of Goods and Works
NCB Works Prior NCB Goods Prior Shopping for Works -Delegated Shopping for Goods Delegated
Recruitment of Consulting Firms, Central and District Quality and Cost based Selection (QCBS) Prior . Individual Consultants Prior
44. Consulting Services Contracts Exceeding US$ 100,000. The following table lists the consulting services contracts expected to commence within the next 18 months.
Consulting Services Contracts
Contract Advertisement International General Recruitment Value Date or National Comments Description Method ($ million) (quarter/year) Assignment Central and District rd Will be Implementation Non ADB 3 Quarter International 7.06 financed by Consultants, and financed 2011 and National SDC technical services District QCBS Implementation (80:20) Full 3rd Quarter National 3.84 Consultants (10 Technical 2011 consultants districts) Proposal
National rd Individual 3 Quarter Consultants 0.21 National recruitment 2011 (CISC) QCBS (80:20) 1st Quarter National NGO 0.40 National Simplified 2012 Technical Proposal QCBS Local NGOs for (80:20) nd 2 Quarter Microfinance 0.27 Simplified National NGOs 2012 Access Facilitation Technical Proposal QCBS (80:20) st National Livelihoods 1 Quarter 2.57 Simplified Training Training 2012 Technical Providers Proposal QCBS = Quality and cost based selection
26 ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II Final Report – Linked Document 2: Project Administration Manual
45. Goods and Works Contracts are estimated to cost less than US$ 1 million and more than US$ 100,000. The table below sets out goods and works contracts for which procurement activity is expected to commence within the next 18 months of the date of the RRP.
Goods and Works Contracts
Value of Procurement / Number of General Description Contracts Recruitment Comments Contracts 1/ (cumulative) Method [CIVIL WORKS] ($ million)
1 Road Infrastructure 34.48 Several NCB / Incl. OFID 2 Supplementary Investments 4.00 Several CP/shopping 3 Road Maintenance 1.50 Several NCB / CP/shopping [EQUIPMENT AND VEHICLES] NCB / CP/shopping 4 Equipment 1.00 Several 5 Vehicles (4WD & motorbikes) 1.44 Two
[STUDIES & SURVEYS] NCB/Shopping 6 Studies and Surveys 0.30 Several NCB / Shopping QCBS 1/ NCB = National Competitive Bidding; CP= Community Procurement
46. Indicative List of Contract Packages required under the Project. The following table lists the goods and works contracts expected over the life of the project.
Indicative Contract Packages
Value of Procurement / Number of General Description Contracts Recruitment Comments Contracts 1/ (cumulative) Method [CIVIL WORKS] ($ million)
1 Road Infrastructure 34.48 Several NCB / Incl. OFID 2 Supplementary Investments 4.00 Several CP/Shopping 3 Road Maintenance 1.50 Several NCB / CP/Shopping NCB / [EQUIPMENT AND VEHICLES] CP/shopping
4 Equipment 1.00 Several 5 Vehicles (4WD & motorbikes) 1.44 Two NCB NCB [STUDIES & SURVEYS] 6 Studies and Surveys 0.30 Several NCB 1/ NCB = National Competitive Bidding, CP= Community Procurement
47. Planning The ADB approved NCB documents for DRILP can be used for the next phase of the Project under Additional Financing. These documents should be submitted to ADB for approval and then used for procurement activities.
27 ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II Final Report – Linked Document 2: Project Administration Manual
D. Consultant's Terms of Reference
48. The DRILP arrangement of two teams of consultants (CISC, DISC) and NNGO supporting the central (PCU, DOLIDAR) and the district level (DDCs through the DPO/DTO) project organizations will continue in the next phase of the Project.
49. The Central Implementation Support Consultant (CISC) will be responsible for (i) efficient execution and management of the project to deliver its outputs and achieve its objectives; (ii) meeting the requirements of the GON and ADB and ensuring that quantitative and qualitative standards and targets are met; (iii) provision of guidance and support to the Implementing Agencies at district level; and (iv) developing institutional capacity in the public, private and non-government sectors at central and district level.
50. The District Implementation Support Consultant (DISC) teams will be responsible for: (i) provision of social and technical inputs for awareness raising, participation, the mobilization of beneficiaries and social development; and (ii) for planning engineering design, construction supervision, measurement, certification and quality and quantity control of procured materials such as gabion, tools, cement, fabricated steel parts and other construction materials for subprojects and supplementary investments.
51. A National Non-Governmental Organization (NNGO) will be responsible providing guidance and support the implementing agencies in the implementation of social development related activities and outcome monitoring under the Project.
1. Contracting Arrangements
52. For SDC funded parallel co-financing, contracting arrangements will be in accordance with SDC requirements and norms. This applies to the CISC team, as well as for the DISC teams to be funded by SDC.
53. For funding of those DISC teams not supported by SDC, it is proposed that this be done through a single contract let through quality cost based selection (QCBS). Such a contract provides more flexibility in the provision of the DISC teams, and should lead to a better working relationship between the CISC, and any DISC teams not funded by SDC.
54. The NNGO will be engaged by the PCU through the QCBS method.
2. CISC and DISC
55. The key project management support functions for the implementation of DRILP – Additional Financing will be undertaken by a Central Implementation Support Consultant (CISC) based in Kathmandu, and District Implementation Support Consultant (DISC) teams based in each district. The CISC reports to the DRILP Project Coordination Unit (PCU) based in DOLIDAR. The CISC also guides and assists with back-up technical expertise to the DISC teams as required. The CISC is funded by the Swiss Agency for Development and Cooperation (SDC), and will also include two senior staff funded by the Asian Development Bank (ADB). SDC will fund eight DISC teams and ADB will fund the remaining 10 DISC teams.
56. It is important to note at the outset that the need for, and provision of, DISC teams will vary from district to district and also over the project duration. While contracting DISC provisions shall be made for this.
57. As noted above, the CISC team is already in place with SDC funding. Assuming DRILP – Additional Financing proceeds, then SDC is expected to renew current contractual
28 ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II Final Report – Linked Document 2: Project Administration Manual arrangements with the CISC team to implement the Project, subject of course to the contracting requirements and norms of SDC. Appendix 5 presents the Terms of Reference for the individual members of the CISC.
58. A DISC team will be engaged for each of the 18 project districts with responsibility for the road subproject, and community infrastructure work. SDC will fund 8 DISC teams while ADB will fund 10 DISC teams. Appendix 5 presents the Terms of Reference for the individual members of the DISC teams.
3. NNGO
59. The outline terms of reference for the NNGO are in Appendix 6.
VIII. SAFEGUARDS
60. Environment. The project is category B in accordance with the ADB Safeguard Policy Statement (2009). The executing agency and implementing agencies prepared initial environmental examinations (IEEs), including environmental management plans (EMPs), for the sample subprojects during the subproject preparation work. An environmental assessment and review framework (EARF) was also prepared. The framework sets out the requirements for project screening and classification, subproject selection, information disclosure to, and consultation with, the affected people, environmental assessment, environmental management plan (EMP) development and implementation, and monitoring and reporting. The IEEs found the planned subprojects to have only small and localized adverse impacts on the environment, which can be managed by the mitigation measures proposed in the EMPs. The EMPs will be implemented by the subproject BGs and/or contractors, and the implementation will be monitored by the DISC in each district (which reports to the DPO/DTO/LDO/DDC), and the CISC (which reports to the PCU, DOLIDAR).
61. Resettlement. The project is category B for involuntary resettlement in accordance with the ADB Safeguard Policy Statement. Most subprojects involve land acquisition and involuntary resettlement, but the involuntary resettlement impact is not considered significant.7 Draft resettlement plans will be prepared for these subprojects. A resettlement framework has been prepared in compliance with the government‟s and ADB‟s policy requirements.
62. Indigenous people. The project is category B for indigenous peoples in accordance with the ADB Safeguard Policy Statement. An IPPF has also been prepared, with special assistance measures for indigenous people and other vulnerable groups. However, considering the nature and scale of the subprojects, the impact on indigenous peoples is expected to be limited to a few involuntary resettlement and land acquisition cases. In addition, a gender equality and social inclusion plan contains specific actions favorable to indigenous people.
IX. GENDER AND SOCIAL DIMENSIONS
63. A Gender Equality and Social Inclusion (GESI) action plan (see Appendix 8) has been prepared for the project to address gender inequality and social exclusion issues. The GESI plan contains specific targets for participation of and ensuring project benefits reach rural poor women and disadvantaged groups in the subproject areas of DRILP. The GESI plan
7 Involuntary resettlement impact is considered significant when 200 or more people experience major impact. “Major impact” involves (i) physically displacing people from housing; or (ii) causing people to lose 10% or more of their productive, income-generating assets.
29 ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II Final Report – Linked Document 2: Project Administration Manual
ensures representation and participation of poor, socially excluded and women in Road Building Groups (RBGs), Village Work & Road Construction Committee (VWRCC), and Compensation Determination Committee (CDC), and Users Group (UG) in project orientation, implementation, and monitoring. A data collection system disaggregated by sex, caste, and ethnicity will be developed in PCU/DOLIDAR to monitor the achievement of the gender and pro-poor targets. The plan also includes provisions for increase in recruitment of women‟s staff and deputation in the PCU and DDCs.
X. PERFORMANCE MONITORING, EVALUATION, REPORTING AND COMMUNICATION
A. Project Design and Monitoring Framework
Performance Performance Targets and Targets and Data Sources Indicators Indicators and Design Design with with Reporting Summary Summary Baselines Baselines Mechanisms Assumptions and (Current (Overall (Current (Overall (Overall Risks Project) Project) Project) Project) Project) (Overall Project) Impact By end 2020
Reduced rural Reduced rural Poverty level of Poverty levels in Central Bureau Assumptions poverty in 18 poverty in 18 60% in 18 18 project of Statistics Political and social very poor very poor and project districts reduced Nepal Human stability maintained remote hill and remote hill and districts reduced to 20% from Development mountain mountain to 45%, by 28 41% in 2004 districts districts February 2015 Report Risks Lower economic growth reduces economic opportunities for rural areas Outcome By end 2016 Assumptions Widened access Sustainable Increased levels Average annual Project surveys Assumptions to social increased (at least 25%), income per (baseline, Transport services access to services and and monitoring, end- household in increase in project economic and economic more diverse of-project) for subprojects areas because of social opportunities sources of representative ZOIs increased better roads services income for by 10% per year sample of HHs 200,000 from Rs. 69,500 in subproject Poverty-focused households in in 2007. ZOIs programs continued the zones of influence of Women willing to project Average participate in all infrastructure by number of activities 28 vehicles February 2015 operating per Rate of inflation is day increased to contained 100% increase 10-60 vehicles in existing in subproject Risks freight ZOIs from a Poor quality of volume and baseline of 0-40 construction 275% increase vehicles in 2007 in per Tender collusion capita personal Freight volume trips by 28 increased by February 20% per year 2015 from 0.116
tonnes/capita/ye Proportion of ar in 2007
30 ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II Final Report – Linked Document 2: Project Administration Manual
Performance Performance Targets and Targets and Data Sources Indicators Indicators and Design Design with with Reporting Summary Summary Baselines Baselines Mechanisms Assumptions and (Current (Overall (Current (Overall (Overall Risks Project) Project) Project) Project) Project) (Overall Project) women and disadvantaged ethnic groups 11.2 million and person-days castes in (4.7 million building groups person-days increased under additional by at least 40% financing) of from the work is provided project‟s Women and start by 29 disadvantaged February 2012 groups represent at least 50% of Building Groups membership, from 40% in 2010
Outputs By end 2016 Assumptions 1. Community 1. Community 600 community Project progress Assumptions Development Development Awareness- infrastructure reports Appropriate and and Rural and Rural raising activities, (250 under Proposals affordable community Livelihood Livelihood meetings, and additional submitted for infrastructure Restoration Restoration training financing) community investments identified conducted constructed infrastructure Risks involving BGs in investments Building groups, 50% of the Community support with 40% contracts BGs/Contractor for proposed women s reports Equal wage for investments not members, and forthcoming consisting equal value of Tender collusion and entirely of work corrupt local officials local people 6,000 which may lead to formed in all beneficiaries higher subproject subproject trained in costs and poor livelihood quality of 35 related skills, of construction supplementary which at least investments in 40% are women community and 60% are infrastructure poor and reflect excluded community Access to priorities, microfinance by including those BGs and of the poor, and savings and are selected credit schemes and agreed piloted in 9 districts of the total receiving
the schemes 40% are women and 60% poor and excluded
31 ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II Final Report – Linked Document 2: Project Administration Manual
Performance Performance Targets and Targets and Data Sources Indicators Indicators and Design Design with with Reporting Summary Summary Baselines Baselines Mechanisms Assumptions and (Current (Overall (Current (Overall (Overall Risks Project) Project) Project) Project) Project) (Overall Project)
2. Capacity 2. Capacity All participating Subprojects are Project Assumptions Building and Building and DDCs, prioritize prioritized and reporting, District administrative Decentralized Decentralized and propose proposed by monitoring, and and technical officials Local Local the subprojects DDCs reviews up to the commitment Governance Governance as per DDCs implementation necessary to demonstrate schedule complete the tasks progressively required improved Capacities of capacity to DOLIDAR, Risks implement DDCs and Frequent transfer of transport DTOs infrastructure improved key staff subprojects, and to implement to deliver transport development infrastructure services subprojects, and to deliver development DDC and DTO services capacity in all aspects 15Central and of development 72 District project planning, officers management, participate in and and learn from implementation regional study improved tours of which at least 20% are women.
3. Rural 3. Rural 515 km of rural 715 km of rural Project progress Assumptions Transport Transport roads built and roads built and reports Districts have Infrastructure Infrastructure 130 km of rural 190km of rural BGs/Contractor sufficient construction roads roads s‟ reports capacity and able to rehabilitated rehabilitated indicating male undertake fair and (200 km of rural and female transparent works roads built and workers procurement. 90 km of village 60km of rural employed Risks roads built and roads 70 km of village rehabilitated Annual Road Districts give roads under additional Condition insufficient emphasis rehabilitated financing) Surveys per to recruiting BGs involving BGs in district rather than 8,755 m of trail 50% of the new Annual Road contractors. bridges built road Maintenance Tender collusion construction Plans per leads to higher contracts district subproject costs and 20, 5000 m of poor quality of trail bridges built construction (6,500 m under additional financing) 1,200 km of
32 ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II Final Report – Linked Document 2: Project Administration Manual
Performance Performance Targets and Targets and Data Sources Indicators Indicators and Design Design with with Reporting Summary Summary Baselines Baselines Mechanisms Assumptions and (Current (Overall (Current (Overall (Overall Risks Project) Project) Project) Project) Project) (Overall Project) rural roads fully maintained through length- persons engaged from the local communities, of which 40% will be provided by women Toll collection system piloted in 9 districts to augment the district road maintenance funds
4. Project 4. Project DOLIDAR DOLIDAR Project Assumptions Management Management retention of an retention of reporting, The officials up to the Services Services acceptable project monitoring, and project coordinator and reviews commitment coordinator and agreed-upon necessary to agreed-upon number of staff, complete the tasks number of staff, number of DTO required appointment of staff, and Risks agreed required Contractors unwilling number of DTO number of to operate in more staff, and consultant and remote areas, and required NGO staff as high contract prices number of per schedule Environmental and consultant and social safeguards NGO staff Vehicles and measures may lack join district equipment adequate attention project offices procured during planning and according to implementation Vehicles and time and cost equipment schedules procured according to Gender desk time and cost established in schedules DOLIDAR
Activities with Milestones (Additional Financing) Inputs (Additional Financing)
1. Rural transport infrastructure network extended and
33 ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II Final Report – Linked Document 2: Project Administration Manual
maintained ADB - $25.00 million 1.1 Completion of remaining subproject preparation studies, OFID - $20.00 million detailed design and due diligence reports, by end-2014 SDC - $ 7.06 Government- $13.29 million 1.2 Construction of road subprojects Beneficiaries - $1,10 million 1.3 Environmental management and monitoring in parallel with construction activities 1.4 Annual district road condition surveys initiated by end-2012 and annual road maintenance plans preparation by mid 2013 1.5 Annual road maintenance activities in 18 districts from mid 2013, including piloting of toll collection in 9 districts
2. Community infrastructure provided
2.1 Identification of all community infrastructure needs and priorities, and preparation of plans and detailed designs, along with road subprojects by end-2014 2.2 Community infrastructure construction along with road subprojects initiated in mid-2012, and fully completed by end-
2016
3. Income of rural households uplifted 3.1 Initial income generating capacity training contracts awarded by mid-2012 3.2 Income generating capacity training completed by end-2015 3.3 Contracts awarded to NGOs and other service providers for microfinance access in 6 districts by mid-2013 4. Project management and implementation capacities improved 4.2 CISC, and 18 DISC teams engaged and operational by loan effectiveness
4.2 Procurement of vehicles for DPOs by end-2012 4.3 Procurement of other equipment (survey equipment, rock splitters, laboratory equipment, etc.) by end 2014 4.4 International Study Tours for Central and District officers undertaken by end-2015 4.5 Contracting of consulting services for required surveys, detailed designs, etc. 4.6 Financial management system software and training provided at DDCs and DOLIDAR by end-2012 aGON CBS, WFP & WB, Small Area Estimation of Poverty & Caloric Intake & Malnutrition in Nepal, 2006 b Report of Outcome Monitoring Survey (OMS), DRILP, 2010 ADB = Asian Development Bank, BG = building group, CISC = Central Implementation Support Consultants, DISC = District Implementation Support Consultants, DOLIDAR = Department of Rural Infrastructure and Agricultural Roads, DRRMC = District Rural Road Maintenance Committee, LAR = Land acquisition and resettlement, O&M = operation and maintenance, OFID = OPEC Fund for International Development, RMUC = Road Maintenance User Committee, SDC = Swiss Agency for Development and Cooperation, SCC = Savings and credit cooperative, SFCL = Small Farmers Cooperative Limited, VDC = Village Development Committee, ZOI = Zone of Influence.
Source: Staff estimates
B. Monitoring
1. Project Performance Monitoring
64. A project performance management system (PPMS) will be established and operated under DRILP – Additional Financing. The PPMS will be based on the system in place for DRILP. The main focus will be to ensure that deviations between the project plan and achieved results (outputs, outcomes, and impacts) are recognized by project management in a timely manner, thereby allowing effective corrective actions and decisions. The PCU will, within 6 months of loan effectiveness, conduct baseline socioeconomic surveys in the subprojects proposed for funding under DRILP – Additional Financing, and will submit to
34 ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II Final Report – Linked Document 2: Project Administration Manual
ADB, OFID and SDC, for their review and approval, a detailed PPMS implementation plan. Throughout project implementation, the PCU will submit annual monitoring reports to ADB and the co-financiers.
65. Regular reviews conducted by the Government, ADB, and the cofinanciers will cover physical implementation, financial performance, the implementation of action plans, and the identification of problems that may require early attention. The Government, ADB, OFID and SDC will jointly conduct a comprehensive midterm review (MTR) in the third year of project implementation. The MTR will evaluate (i) project design, (ii) stakeholder participation, (iii) the quality of works, (iv) social and environmental impacts, (v) capacity building, (vi) compliance with loan covenants, (vii) the improvement of local governance, (viii) the effectiveness of implementation arrangements and project management structures, and (ix) future implementation plans for the remaining works. The results of the MTR will guide modifications to the scope and design of the Project and, if needed, the reallocation of funds among the loan categories.
2. Compliance Monitoring
66. The status of compliance, including actions taken to comply, with the loan covenants will be monitored and updated in the ADB's project performance reporting system. The monitoring mechanism will include (i) regular review and verification by the ADB project officer; (ii) field level monitoring and evaluation; (iii) monitoring and review of relevant indicators in the PPMS; (iv) review of annual audited financial statements; (v) project website access; (vi) project review missions and the mid-term review; and (vii) receipt and/or approval by ADB of required documents. The envisaged activities and targets under the Gender and Social Inclusion Action Plan will be monitored by the PCU and added to quarterly and annual progress reports. Updated covenants should be appended to the quarterly and annual progress reports that will be submitted by the PCU.
C. Reporting
67. DOLIDAR will provide ADB with (i) quarterly progress reports in a format consistent with ADB's project performance reporting system; (ii) consolidated annual reports including (a) progress achieved by output as measured through the indicator's performance targets, (b) key implementation issues and solutions; (c) updated procurement plan and (d) updated implementation plan for next 12 months; and (iii) a project completion report within 6 months of physical completion of the Project. To ensure projects continue to be both viable and sustainable, project accounts and the executing agency AFSs, together with the associated auditor's report, should be adequately reviewed.
D. Stakeholder Communication Strategy
68. The project stakeholders are (i) the direct beneficiaries, which include women and men of isolated rural communities who will be involved in the planning of, and benefit from the infrastructure, employment and other accompanying measures. This includes disadvantaged ethnic groups and castes; (ii) the district authorities and elected bodies that will be involved in the project planning, execution and monitoring; (iii) private contractors that may benefit from some of the road works contracts; and (iv) the Department of Local Infrastructure Development and Agricultural Roads (DOLIDAR) and Ministry of Local Development (MLD) who will be in charge of the project's overall supervision at central level.
69. The Project will build on the intensive consultation and community participation undertaken under DRILP with support from consultants and NGOs and based on the project C&P plan. These include both community participation and mobilization for subproject
35 ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II Final Report – Linked Document 2: Project Administration Manual planning, implementation and maintenance. The C&P activities carried out by the PPTA included an inception workshop on 16 February 2011 and PPTA team visits to 16 of the 18 DRILP districts (89%), which involved PRA including meetings with beneficiaries, BG members, NGOs, key district officials, and other stakeholders.
70. The Project will promote participatory approaches through the decentralized government process. Subprojects will be identified through existing VDC participation in finalizing district transport master plans. The Project aims to increase the participation of the socially excluded and poor in VDC decision making through a community social mobilization program, which will target vulnerable and excluded groups (women and disadvantaged castes generally). Workshops run by social mobilizers will help poor people develop the confidence to speak at meetings and participate in collective decision making. Communities will be trained by the social mobilizers to acquire skills to run community consultations that include all sections of the community. Within BGs, the capacity of men and women to voice their concerns will be strengthened through training they will receive from the social mobilization and capacity-building activities. The social mobilization activities are designed to be implemented to the maximum extent possible through program sharing with partner organizations already active in the districts, and can readily be adapted to close collaboration and parallel co-financing.
XI. ANTICORRUPTION POLICY
71. ADB reserves the right to investigate, directly or through its agents, any violations of the Anticorruption Policy relating to the Project.8 All contracts financed by ADB shall include provisions specifying the right of ADB to audit and examine the records and accounts of the executing agency and all Project contractors, suppliers, consultants and other service providers. Individuals/entities on ADB‟s anticorruption debarment list are ineligible to participate in ADB-financed activity and may not be awarded any contracts under the Project.9
72. To support these efforts, relevant provisions are included in the loan/grant agreements and the bidding documents for the Project. Risks associated with project management, including procurement and disbursement, will be mitigated by (i) providing consulting inputs to advise and assist in the procurement of goods and services; (ii) requiring that civil work contracts include a condition that contractors adhere to ADB‟s Anticorruption Policy (1998, amended, from time to time); (iii) the PCU periodically inspecting the contractor‟s fund withdrawals and settlements; and (iv) reporting on project activities and implementation on the website to foster transparency and timely awarding of contracts.
XII. ACCOUNTABILITY MECHANISM
73. People who are, or may in the future be, adversely affected by the Project may address complaints to ADB, or request the review of ADB's compliance under the Accountability Mechanism.10
XIII. RECORD OF PAM CHANGES
74. All revisions/updates during course of implementation should be retained in this Section to provide a chronological history of changes to implemented arrangements recorded in the PAM.
8 Available at: http://www.adb.org/Documents/Policies/Anticorruption-Integrity/Policies-Strategies.pdf 9 ADB's Integrity Office web site is available at: http://www.adb.org/integrity/unit.asp 10 For further information see: http://compliance.adb.org/.
36 ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II Final Report – Linked Document 2: Project Administration Manual
APPENDIX 1: INDICATIVE LIST OF DRILP (ADDITIONAL FINANCING) ROAD SUBPROJECTS
District Indicative Road Subprojects
Taplejung Gupha-Dhungesangu-Dobhan
Solukhumbu Garma-Nele-Budhidanda
Okhaldhunga Rumjatar-Kartekhola
Ramechhap Pakarbas-Galpa
Gorkha Gorkha-Arughat
Sundarbazar-Kunchha-Duipiple Lamjung Salmebhanjyang-Gamrang Baglung Baglung-Kusmisera
Myagdi Beni-Pakhapani
Jajarkot Cheda-Dhungel-Batule
Dolpa Dunai-Lesicape-Dho
Thinke-Urthuchautara Jumla Kudari-Tamti-Topla Gamgadhi-Talcha-Rara Mugu Kalakanda-Khamale-Kawa
Humla Simikot-Hilsa
Rengil-Bhartadi Kalikot Bhartadi-Lainfu Bajhang Rupatola-Telkot
Barahbise-Aatichaur Bajura Martadi-Thamlek Sribhavar-Hat Baitadi Salena-Melauli Darchula Dethala-Khalanga
37 ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II Final Report – Linked Document 2: Project Administration Manual
APPENDIX 2: SELECTION OF ROAD SUBPROJECTS IN DRILP – ADDITIONAL FINANCING
Introduction
1. DRILP has been operating since October 2005, and is due for completion in October 2011. Under DRILP, DOLIDAR and the DDCs have developed a substantial pipeline of road subprojects in the 18 districts to be covered by the Project. A number of these pipeline road subprojects are in an advanced stage of subproject preparation, while some others are less prepared. All however have been covered by preliminary project preparation activities, and have been approved by the respective DDCs.
Selection of Road Subprojects for DRILP – Additional Financing
2. During DRILP, the 18 project districts were requested to formulate potential road subprojects for implementation. This was done by each district, typically involving a walk- over survey by experienced road engineers to validate the technical feasibility of the indicative road alignments, and to prepare preliminary cost estimates of each road subproject. Typically the road subprojects in each district had previously been indicated in the District Transport Master Plan (DTMP). These were then reviewed by the PCU, DOLIDAR with the assistance of the CISC. Potential subprojects were then ranked according to:
(i) the number of beneficiaries, (ii) the potential for generating employment, and (iii) technical feasibility and cost (in the context of the overall project budget).
3. In-principle agreements were then made on which subprojects will be included in DRILP. The DDCs took a leading role in this process of establishing district priorities for new road subproject implementation.
4. In regard to implementation of DRILP road subprojects, this was done using an informal performance based system. Those districts which responded quickly to prepare and implement their top priority road subprojects were then able to move forward to commence work on subsequent road subprojects. However, the DRILP budget was insufficient to undertake all the envisaged works, such that DRILP – Additional Financing now has a pipeline of pre-approved road subprojects arising from DRILP. The emphasis in DRILP going forward therefore will be to complete all the road subprojects identified. Many of these are in an advanced state of project preparation, and hence the Project will be able to quickly move into field implementation of these road subprojects. Once the preparation work has been completed the final decision on funding will be made PCU, DOLIDAR considering (i) the number of beneficiaries, (ii) the potential for generating employment, (iii) technical feasibility, (iv) cost, and (v) economic analysis, if needed.
38 ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II Final Report – Linked Document 2: Project Administration Manual
APPENDIX 3: CRITERIA FOR FUNDING COMMUNITY INFRASTRUCTURE SUBPROJECTS
5. The Project will support complementary investments for community infrastructure in the ZOIs of the road subprojects. These can be of many types of community infrastructure, including:
(i) School buildings and facilities; (ii) Health posts; (iii) Small irrigation schemes; (iv) Community water supply schemes; (v) Micro-hydropower schemes; (vi) Village roads and trails; (vii) Rural market places; (viii) Ropeways (gravity or mechanized); and (ix) Miscellaneous other community infrastructure facilities.
6. The Project will support complementary investments for community infrastructure in accordance with the expressed needs of the rural communities in the ZOIs of the road subprojects. The cost of the community infrastructure investments will be around 20% of the cost of the main subproject, or USD120,000 whichever is lower.
7. The complementary investments must show a clear access benefit related to the main subproject. Selected community infrastructure subprojects will have beneficiaries over 50% of whom are below the poverty line as assessed through household surveys. Once a road subproject is confirmed for implementation, the DISC team in the relevant district will carry out a demand survey for potential community infrastructure subprojects in the ZOIs of the road subprojects.
8. It is important that these are identified in a thorough community participation process. In addition, the relevant VDCs/beneficiaries of the SIS are expected to contribute an amount of 15% towards the cost of construction of the complementary investments. These contributions are typically in kind, such as by donation of land for the community infrastructure, and/or provision of locally sourced building materials (such as rock, sand, and timber). However, employment required to build the complementary subprojects will usually be paid for, in line with the livelihoods improvement objective of DRILP – Additional Financing.
9. The Project will enhance rural livelihoods in a number of ways, including direct wage payments to the poorest households, amounting to about 40% of subproject construction costs. Any paid inputs provided by the VDCs/beneficiaries shall be reviewed to ensure the arrangements provide value for money. Wherever possible VDC/beneficiaries paid inputs shall be on a lump sum basis where the quantity and value of inputs are agreed prior to the input being provided. Clearly, there are budget limitations on the extent of complementary subprojects that will be implemented, and this limitation is within the purview of the PCU, DOLIDAR to manage the available budget on an equitable basis between the road subprojects being implemented.
39 ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II Final Report – Linked Document 2: Project Administration Manual
APPENDIX 4: ROAD MAINTENANCE INITIATIVE IN DRILP – ADDITIONAL FINANCING
A. Background
10. Based on the District Development Statistics (DDS) for 2010/2011, the total length of rural roads planned in the 18 project districts is 2,159 km. These data also indicate the total length of rural roads completed in the 18 project districts as 896 km, all earthen except for 22 km of gravel. However, according to the DDS 2010/2011, the total length of motorable roads is 575 km for all 18 project districts. Nine districts are reported to have no motorable roads at all, and another five districts each have on average only 7 km of motorable road. The remaining 4 districts have a total of 540 km of motorable road – these are Ramechhap (225 km), Lamjung (147 km), Gorkha (121 km), and Baglung (47 km).
11. It is estimated that with an additional 321 km which have been constructed (mainly under various earlier and ongoing rural roads projects) but not currently motorable, the current target for road maintenance in the 18 project districts will total a minimum of 896 km. The PPTA Consultant estimates that these 2010/2011 data are actually about two years old, and do not include rural roads built recently by ongoing projects, such as DRILP and DRSP. The real picture of total requirements for rural roads maintenance in the 18 project districts will only emerge once up-to-date road inventories and condition surveys are done in the first year of the Project. For current programming purposes, the total maintenance target has been set at 1,200 km in total for the 18 districts in 2012.
B. Scope of the Rural Roads Maintenance Initiative
12. The Project will provide direct support to rural road maintenance programs at the district level in accordance with the national Maintenance Sector-Wide Approach (SWAp). The Project will contribute to the annual maintenance budgets for all rural roads in each of the 18 project districts, through a system of pre-qualification. To qualify for the maintenance grant under the project, districts will need to clearly allocate the road maintenance function to a suitable person in the DTO‟s office (which might include the DTO himself/herself); prepare an inventory of all rural roads in the district; conduct annual rural road condition surveys; and prepare annual rural road maintenance plans. The Project will provide technical support to the districts to enable them to qualify for the annual maintenance grants. Road maintenance planning will be performed in accordance with the maintenance SWAp approach by developing an annual maintenance plan for rural roads based on a post monsoon inspection of all rural roads in the districts. A system of toll collection will be piloted in nine districts to augment rural road maintenance budgets. The maintenance support from the Project will focus on providing routine and periodic maintenance on district roads (largely earthen and gravel) that are currently of maintainable standard. Routine maintenance will be delivered by length-persons who will be sourced from the ZOIs of the rural roads being maintained and employed directly by the districts, further promoting employment generation in the districts.
C. Proposed Arrangements
13. A program of comprehensive maintenance will be performed, potentially covering all 18 project districts. Districts complying with pre-qualifying criteria will receive grant funding to supplement existing rural road maintenance funding from internal sources, the Roads Board of Nepal, the Ministry of Local Development, and others. In addition to funding, the Project will provide technical assistance in maintenance planning and implementation. The maximum level of funding provided to each district will depend primarily on the length of the rural roads network in each district, and the current condition of the network in each district.
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1. Qualification Criteria
14. To qualify for funding, districts will need to comply with the following criteria:
(i) District Maintenance Officer (DMO). The District should clearly allocate the road maintenance function to a suitable person in the DTO‟s office, to be responsible to plan for maintenance of the rural road network. The DMO shall have responsibility for developing and implementing a comprehensive program of rural road maintenance;
(ii) Road inventory. Districts should develop an inventory of all rural roads in the district;
(iii) Annual condition surveys. Districts should perform annually a condition survey of the rural road network in the district;
(iv) Annual road maintenance plan. Districts should prepare a road maintenance plan comprising routine, periodic, and emergency maintenance. To preserve the rural roads asset and to ensure maximum accessibility, routine maintenance should be prioritized. The periodic maintenance works should be prioritized considering the socio-economic importance of the link, the preservation of the asset, and budget constraints. The maintenance plan should seek to maximize accessibility across the district rural road network; and
(v) Implementation of the maintenance plan. Districts should implement the maintenance plan in an efficient, effective, and timely manner.
2. Scope of the Program
15. The program will support road maintenance across the district rural road network and have the objective of maximizing accessibility and asset preservation.
3. Types of Maintenance
16. The maintenance component will focus on providing routine and periodic maintenance on all roads in a maintainable standard in the district. It is expected that district roads will be either earthen or gravel roads. It is essential however that all roads to be maintained will currently be in a maintainable condition.
4. Maintenance Planning
17. Maintenance planning will be performed in accordance with the proposed Maintenance SWAp approach by developing an annual maintenance work plan for district rural roads based on a post monsoon inspection of all district rural roads.
5. Institutional Arrangements
18. The responsibility for road maintenance should be established within the DTO in the District. A District Maintenance Officer (DMO) should be designated who will be responsible for performing annual condition surveys on district roads and managing the routine maintenance activities. The DMO will also package and prepare periodic and emergency maintenance contracts for funding by the districts. The DMO, or designated responsible officer in the DTO for road maintenance, will be mentored and supported by the Maintenance Management Engineer Advisor in the CISC.
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a. District Rural Road Maintenance Committee (DRRMC)
19. DDC should form a District Rural Road Maintenance Committee (DRRMC) at district level for the management of rural road maintenance work according to following outline:
1. DDC chairperson, or DDC member assigned by him/her - Chairperson 2. Coordinator Physical Infrastructure Development Committee – Member 3. Representative of District Industry and Commerce - Member 4. Technical Representative of related Division Road Office - Member 5. From the rural road maintenance users committees within the district, one male and one female, nominated by Chairperson - Member 6. Representative of district level Transport Entrepreneurs – Member 7. DDC Secretary (LDO) – Member 8. Head of the District Technical Office - Member Secretary
20. The DRRMC will perform the following works:
(i) Identification and mobilization of local resources for rural road maintenance fund; (ii) After identification of rural roads to be maintained, prioritize and recommend according to specified standards; (iii) Support implementation of approved projects for maintenance; (iv) Perform regular monitoring of roads for maintenance needs; and (v) Maintenance related running activities and operating rural roads, perform work assessments, by at least holding a meeting once in a trimester and produce the assessment report to DDC.
b. Road Maintenance Users Committee (RMUC)
21. In addition to DRRMC, there will be a provision for a minimum one Road Maintenance Users Committee (RMUC) to support maintenance activities, and identify needs and priorities in sustainable manner, in each rural road. This committee will work under the instruction of DRRMC.
22. The formation of RMUCs according to the provisions of the Local Agency Financial Administration Regulation, 2064 will need to be formed through meetings of road users, as well as beneficiaries of improved rural road accessibility. This committee needs to be represented from the connected areas/VDCs, with female members not less than 33% of total members, and with appropriate representation of castes, indigenous people, and ethnic groups. This committee will need to list, register, and renew legally, members from the concerned local agencies:
Chairperson - 1 person Vice Chairperson - 1 person Secretary - 1 person Treasurer -1 person Members - 5 to 7 persons Total - 9 to 11 persons
23. The road maintenance users committee should clarify themselves and operate according to existing rules and regulations in acceptance of local agencies making
42 ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II Final Report – Linked Document 2: Project Administration Manual appropriate constitution, own committee formation process, implementation limitations, and working processes.
6. Annual Grants to the Districts for Road Maintenance
24. The annual grants to the districts for road maintenance will be conditional upon the districts satisfactorily meeting the pre-qualification criteria. The annual grant to the districts will take into account the length of motorable roads, as well as the needs for rehabilitation of existing rural roads currently not motorable. Districts will need to agree to the terms of fund provision (pre-qualification criteria), and commit to use the road maintenance funds in strict accordance with the agreed guidelines. If the districts comply with the terms of fund provision in year 2, they will be eligible to receive the next year‟s annual grant from the Project.
25. The Project will contribute funds mainly for routine maintenance from year 2 of the Project, as well as providing a modest contribution towards rehabilitation works in the districts. The DDCs will fund periodic maintenance and emergency works using current funding arrangements, from MLD, the Roads Board of Nepal, and other sources.
26. Routine maintenance will be performed by length-persons who will be employed directly by the districts. The length-persons will be supervised and managed by overseers who will report to the DMO. It is anticipated that length-persons will be sourced from the ZOIs of the rural roads being maintained.
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APPENDIX 5: TERMS OF REFERENCE FOR CONSULTING SERVICES
A. Introduction
27. The key project management support functions for the implementation of DRILP – Additional FInancing will be undertaken by a Central Implementation Support Consultant (CISC) based in Kathmandu, and District Implementation Support Consultant (DISC) teams based in each district. The CISC reports to the Project Coordination Unit (PCU) based in DOLIDAR. The CISC will be funded by the Swiss Agency for Development and Cooperation (SDC), and will include two senior consulting positions to be funded by the Asian Development Bank (ADB). SDC will fund 8 DISC teams and ADB will fund 10 DISC teams. The CISC will provide overall technical guidance and back-up technical expertise to all the DISC teams in the 18 project districts.
28. The need for, and provision of, DISC teams will vary from district to district. For those districts where there are major ongoing road subproject preparation and implementation activities, a full complement of DISC team staff will be required. In other districts where only limited work will be undertaken in the next phase of DRILP, there will only be a limited need for DISC team inputs.
B. Central Implementation Support Consultant (CISC)
29. The CISC will comprise the following consulting positions and staff:
No. p-m International Consultant: Team Leader Expatriate Resident ( 75% for the first 18 months and 100% then on) 1 42 Short Term International Consultant: on demand 4 Total - International Consultants 46
National Consultants and Staff: Deputy Team Leader/Policy Advisor 1 48 Road Quality Engineer Technical Advisor (ADB) 1 48 Maintenance Management Engineer Advisor (ADB) 1 48 Contract Management Advisor 1 48 Social Safeguard (Resettlement) Advisor 1 48 Resettlement Officer 1 48 Environmental Assessment Advisor 1 48 Environmental Assessment Officer 1 48 GESI Advisor (Community Development Advisor) 1 48 Project Economist 1 48 Planning, Monitoring and Evaluation Advisor 1 48 Senior Computer and Mapping Officer 1 48 Bio-engineering (Climate change) Officer 1 48 Total - National Consultants and Staff 624
Outline terms of reference for the individual members of the CISC are presented below.
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Team Leader (42 p-m, international)
30. The Team Leader will be a qualified Engineer with at least 15 years experience of practical on-site labour-based construction and maintenance of rural infrastructure, including experience in the South Asia region, preferably in Nepal.
31. The Team Leader will have overall responsibility for the organization, conduct and delivery of the services to meet the requirements of the project. The Team Leader will work directly, and manage relations, with the DoLlDAR PCU and be responsible for the preparation of all consultant reports, including monthly, trimesterly and annual reports to the PCU. The Team Leader will take the lead role in completing the following main tasks or overseeing their completion by the consultant team.
(i) Establish a comprehensive project management support system for DOLlDAR through the consultant team. This team will be responsible for assisting DOLlDAR to undertake a range of project management tasks defined by the PCU.
(ii) Assist DOLlDAR in all aspects of the recruitment of national-level NGO social development services.
(iii) Draft, circulate for comment, revise and finalize with the PCU, a Project Procedures Manual defining the specifications, standards, methodologies, procedures. Guidelines and documentation for all key aspects of implementation of the project. This should draw extensively on practices developed on other projects and for the most part should not consist of new material.
(iv) Based on the process set out in the Project Procedures Manual, co-ordinate with the PCU the provision of training to the districts in the selection of subprojects in accordance with the project criteria, and the issuing of invitations for submission of approved subprojects from the DDCs.
(v) Through the PCU, co-ordinate the provision of assistance to the DDCs in the conduct of technical, environmental, social and economic feasibility studies of prioritized subprojects.
(vi) Assist and advise the PCU in checking the compliance with DRILP criteria and requirements of subprojects and supplementary investments approved by the DDCs and forwarded to DOLIDAR.
(vii) Liaise with the PCU, the DDCs, the national NGO and other projects for training and pre-qualification, with justifications, of domestic consulting firms and local NGOs for District Implementation Support Consultant (DISC) teams.
(viii) Work with DOLlDAR to modify, for project use, the relevant contract documentation from the Public Works Directives to be used by the DTOs to contract with their respective DISCteams. Provide advisory support, as required, to each DTO in selecting its DISC team.
(ix) Co-ordinate with the PCU the provision of orientation and training to each of the DISC teams, as they are formed. Following on from this, ensure the continuing provision of advisory support and direction to DISC teamsthroughout the preparation and implementation of the main subprojects and the Complementary Community Investments.
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(x) Provide assistance to DOLlDAR and the DDCs, subject to district specific partnership agreements that may be agreed with other donor-funded rural infrastructure projects, to delegate certain tasks to these projects and oversee their conduct.
(xi) Assist the DDCs in devising and establishing regular planned maintenance arrangements, including a funding system, for their rural road networks, according to DOLlDAR guidelines.
(xii) Assist the PCU in all aspects of implementing the Project Performance Management System, including establishing the computerized data-processing system, conduct of field reviews and supervision of key project activities, and preparation of trimester, annual, mid-term, and final reports. Also advise the PCU as required on financial management aspects of project implementation.
(xiii) Undertake periodic checks to review the quality and cost-effectiveness of site works, and test the accuracy of measurements by the District lmplementation Teams and the fair payment of workers. Conduct special monitoring of other critical aspects of project processes and implementation, and assist DOLlDAR in the performance monitoring of the participating DDCs. Based on the findings, recommend remedial actions to the PCU as required.
(xiv) Co-ordinate the provision of consultant services for all aspects of environmental screening and examination, definition of mitigation measures, and environmental monitoring, as required by national legislation and ADB procedures. This is to be done in close collaboration with the EMS of the MLD, DOLlDAR and the DISCs, who shall be responsible for approving or seeking approval of the outputs. The services will include support to the planning and reporting of independent environmental monitoring at project and subproject levels.
(xv) On the basis of monitoring outputs, propose any changes - in operational and management procedures that would enhance the effect of project interventions, for review with DOLIDAR.
(xvi) Prepare recommendations for the PCU on how planning processes at district level can be improved for better integration of rural infrastructure development with other rural development activities, and oversee the provision of advisory support to the DDCs.
(xvii) Assist DOLlDAR in the recruitment of other project consultant services as required.
(xviii) Generally establish effective and productive working relationships with the PCU, DOLlDAR and other projects managed by the department, in order to respond effectively to project management needs and contribute to institutional strengthening.
7. Deputy Team Leader/Policy Advisor (48 p-m, national)
32. The DTL has a key role to provide day-to-day support to the Team Leader in all aspects of the implementation of the Project, as detailed above for the Team Leader, and in particular advising the Team Leader of key policy issues arising in the Nepalese context which may deleteriously impact on the performance of the Project. The DTL will be a senior engineer with a minimum of 20 years professional experience, and prior direct field
46 ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II Final Report – Linked Document 2: Project Administration Manual experience throughout Nepal on engineering matters, and particularly in the 18 project districts. It is mandatory that the proposed DTL be registered with the Nepal Engineering Council in accordance with the Nepal Engineering Council Act, 205.
33. In the absence from time to time of the Team Leader, the DTL shall lead the overall CISC team, and be responsible for the overall implementation, coordination, administration, and management of the whole team. In addition, the DTL will play a leading role to ensure the fullest possible coordination, and cooperation, with other project implementation units, including the PCU and the NNGO at the central level, and the DISCs, DPOs, and DTOs at the district level.
8. Road Quality Engineer Technical Advisor (48 p-m, national)
34. The consultant will formulate a comprehensive project monitoring and evaluation framework and a related schedule of activities for the Project. The Advisor will have the following qualifications: a tertiary degree in civil engineering from an approved university; at least 15 years experience in road design and construction supervision; knowledge of Government‟s policies, administrative systems, and procedures, in district road development; excellent written and oral communication skills in English and Nepali; strong interpersonal skills and ability to work in a multidisciplinary team; and ability to work independently and undertake extensive travel in the rural areas
35. The consultant will be responsible to the Head of CISC and work closely with investigation and design consultants and DISC teams. The specific tasks include:
(i) Review Terms of Reference of road and bridge investigation and design consultants. (ii) Promote good investigation and design practice by participating in initial and final field checks of design. (iii) Review the output investigation and design consultants to ensure compliance with their Terms of Reference. Ensure construction cost estimates are consistent with the construction drawings. (iv) Raise awareness in district administrations, Building Groups, community and DISC teams of the need for adequate supervision of construction activities. (v) Perform field audits of construction to ascertain compliance with specifications and construction drawings. (vi) Promote the use of Building Groups in construction through the employment of construction activity specialists and appropriate technology. (vii) Increase the capacity of district administrations to implement infrastructure development activities efficiently and effectively by employing appropriate project management methods. (viii) Provide an annual plan to the Head of CISC on activities to be performed and monthly reports on progress, problems and responses to problems.
9. Maintenance Management Engineer Advisor (48 p-m, national)
36. The consultant will promote improved road maintenance in all districts and develop and monitor the Road Maintenance Programs in the 18 project districts. The Advisor will have the following qualifications: a tertiary degree in civil engineering from an approved university; at least 15 years experience in road maintenance and construction; experience in planning and implementing road maintenance in a developing country; knowledge of
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Government‟s policies, administrative systems, and procedures, in district road development; excellent written and oral communication skills in English and Nepali; strong interpersonal skills and ability to work in a multidisciplinary team; and ability to work independently and undertake extensive travel in the rural areas.
37. The consultant will be responsible to the Head of CISC and work closely district administrations, communities, DRMUC, RMUC and District Maintenance Officers in the 18 project districts. It is expected that the consultant will travel extensively to project districts in the performance of his/her duties. Specific tasks include:
(i) Promote awareness on the need for and importance of continuous and adequate road maintenance and the use of Labor Based Equipment Supported approach to maintenance amongst the community, road user groups and decision makers. (ii) Promote improved road maintenance planning and implementation through workshops and direct support to district administrations. (iii) Develop a workmanship and material specification for routine and periodic maintenance on district roads. Promote the use of this specification by district administrations. (iv) Assist district administrations to participate in the DRILP road maintenance program by complying with government road maintenance policies (v) Assist in the formation and development of capacity in District Road Maintenance Committees and Road Maintenance User Committees. (vi) Assist districts to develop and use a system to perform annual road condition surveys and prepare annual road maintenance plans. (vii) Review the current system of toll collection in place in some districts and prepare a proposal to implement toll collection in 9 pilot districts. (viii) Assist the districts to develop and establish an approach to funding and performing Emergency Maintenance. (ix) Assist in the development of small contractors to perform periodic maintenance by contract on district roads. (x) Provide mentoring and support to District Road Maintenance Officers in performing their duties. 38. The consultant will provide an annual plan to the Head of CISC on activities to be performed and monthly reports on progress, problems and responses to problems.
10. Contract Management Advisor (48 p-m, national)
39. The Contract Management Advisor should have a minimum qualification of a Bachelor Degree in Civil Engineering, and a minimum 10 years of relevant professional experience in contract management of civil engineering works, of which a minimum of 5 years should be in roads construction and related activities (such as road bridges, and bio-engineering works for roads), and preferably for roads in hilly and mountainous terrain. The Advisor will be responsible for the responsible tasks:
(i) Review existing templates for contracting out road works, and upgrade these as required; (ii) Train, mentor, and coach technical staff at the district level in contract management matters, including design of suitable contract formats for specific works, negotiating contract items and documents with bidders, and monitoring
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the implementation of contracts in the field, including the contract implications of design amendments during construction; preparation and recommendation of interim payment certificates; and preparation and recommendation of final payment certificates; (iii) Undertake due diligence of all contract documents prepared by the CISC and the DISCs, prior to approval of funding of the proposed contract activities; (iv) Should such proposed contract documents be found to be inadequate in any respect, prepare a list of requirements to remedy such identified inadequacies, and ensure these are carried out before the proposed contract activities are tendered out; (v) For project works undertaken by BGs, review the proposed arrangements for payments to BG members; where such payments are related to work norms (such as payment per cu. m. of specific types of material excavated), rather than simply on labor input time, undertake appropriate analyses to ensure that the work norms are realistic in the context of the labor time required with the specific types of equipment available to the BGs; (vi) Where existing work norms are found to be inadequate, prepare revised work norms for consideration by DOLIDAR and the DDCs; (vii) In conjunction with the CISC Maintenance Management Engineer, review the proposed contractual arrangements for payment of the Length-Persons for routine maintenance works undertaken on the rural road network in each district. The intention should be to design a payment system based on reasonable payment norms for the lengths of rural road to be maintained by each length- person, including the frequency of required routine maintenance cycles by the length-persons, in both the dry and wet seasons; and (viii) Undertake additional tasks, as required by the Team Leader.
11. Social Safeguards (Resettlement) Advisor (48 p-m, national)
40. The Specialist will have relevant professional qualifications, combined with at least 10 experience of the resettlement of vulnerable groups in connection with rural infrastructure investments. The specialist will be responsible, under the supervision of the Team Leader, for the following main tasks:
(i) Review the Resettlement Framework prepared during project preparation. In particular, review the policy, and screening and planning procedures that will apply to the subprojects. (ii) Contribute to the Project Procedures Manual in respect of resettlement procedures for rural transport infrastructure subprojects and supplementary investments. (iii) Advise the DDCs on the requirements of the Resettlement Framework and provide support and training as required. Ensure that DDC staff understand the position of resettlement activities in the critical path of project planning, and that they make timely provision for its implementation. (iv) Work with the DDCs and NGOs engaged for social development works during the identification and design of the subprojects to ensure that the requirement for resettlement and compensation is minimized. (v) Provide advice and support in the preparation and approval of Resettlement Plans where these are necessary for specific subprojects.
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(vi) Support and assist the DDCs during the consultation process required to reach agreements on specific entitlements with each Project Affected Person (PAP). (vii) Monitor the implementation of Resettlement Plans by the respective DDCs to help ensure fair and just treatment for the persons displaced. Verify that the requirements of ADB's Safeguards Policy Statement (2009) and the PAPs‟ constitutional and legal rights have been met before construction works are started by DDCs. Confirm that land titles have been transferred to the DDC and compensation paid in full. (viii) Work with the Social Mobilizers of DISCs engaged for social development works to see that additional counselling and support is provided to resettled persons and that they are given opportunities for work in subproject Building Groups. (ix) Conduct periodic follow-up monitoring to ensure that the livelihoods of PAPs have been significantly reduced, and to verify that those eligible for income restoration measures have received their due entitlement of support. (x) Undertake additional tasks, as required by the Team-Leader.
12. Environmental Assessment Advisor (48 p-m, national)
41. The Consultant will be a professionally qualified environmental specialist with extensive, practical experience of the rural infrastructure sector in hill and mountain area of Nepal. The consultant must be fully familiar with and practised in the application of the Nepali environmental regulations. Familiarity with ADB environmental requirements will be an advantage. The consultant will work under the supervision of the Team Leader to undertake the following tasks:
(i) Liaise closely with the EMS of MLD, DOLlDAR and the DDCs, who have the responsibility for approving or seeking approval of the environmental screening and initial environmental examinations (IEE) based on the Environmental Assessment Review Framework (EARF). Provide simple guidelines on the tasks and responsibilities involved and ensure that the staffof these agenciesunderstand their responsibilities. (ii) Contribute to the preparation of the Project Procedures Manual in respect of environmental aspects. Prepare guidelines and procedures for environmental tasks: screening, drafting of TOR for IEEs, review and approval of IEEs, public consultation, and managing environmental consulting services; and support and facilitate their adoption and practice. (iii) Prepare, with appropriate consultations, District Environmental Briefs for each of the participating districts, using the model developed by the Rural Access Program and endorsed by DOLIDAR. (iv) Support the DDCs and DTOs in undertaking environmental appraisal of subprojects as required by national legislation and ADB procedures. This will comprise: (a) environmental screening of all subprojects; (b) initial environmental examinations where necessary; and (c) the processing and completion of all approvals by the appropriate authorities. (v) Facilitate and support the DDCs, DTOs and DISC teams to undertake and report on regular environmental monitoring of ongoing subprojects to check compliance with project guidelines and implementation of mitigation, measures defined in the IEEs. (vi) Where appropriate, highlight to DOLIDAR: (a) situations of significant deviation
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from project environmental requirements; (b) proposed remedial actions; and (c) proposed modifications to existing procedures or to project standards, for consideration by the PCU. (vii) Support the EMS of MLD in managing independent environmental monitoring at project level. (viii) Prepare and organize environmental awareness-raising and training activities, particularly for stakeholders in the districts. (ix) Liaise with other programs and agencies to explore the potential for collaboration in strengthening the environmental capacities of the DDCs, DOLlDAR and the EMS. (x) Undertake additional tasks, as required by the Team Leader.
13. Gender and Social Inclusion (GESI) / Community Development Advisor (48 p-m, national)
42. The consultant will assist in the implementation of social development and gender mainstreaming activities according to the GESI Action Plan. S/he will work under the direction of the Team Leader of the CISC. The Specialist will have the following qualifications: an advanced post-graduate degree in social science, gender and development or related fields; sound knowledge of social inclusion issues in the sector; at least 5-7 years‟ experience in women‟s advancement, gender equality and participatory development; knowledge on contemporary gender and development programs and issues in Nepal and the region; knowledge of Government‟s policies, administrative systems, and procedures, in the area of rural development and poverty reduction; experience of working with NGOs and international agencies; excellent written and oral communication skills in English and Nepali; strong interpersonal skills and ability to work in a multidisciplinary team; and ability to work independently and undertake extensive travel in the rural areas.
43. The Gender and Social Development Specialist will:
(i) Provide guidance in developing policy, programs, and procedures of the project to implement the GESI Action Plan and enhance contribution to social development; (ii) Assist the Resettlement Specialist to plan, design training and orientation, prepare a curriculum, deliver, monitor, and evaluate training/orientation on gender and social analysis and support incorporating gender aspects in, participatory governance/management, leadership development and other social development related training for the project staff; (iii) Provide social and gender inputs for all training programs, both at institution and community levels; (iv) Develop effective mechanisms to ensure participation of, and regular consultation with, the DDC, by Women‟s Organizations, NGOs and concerned stakeholders, in the selection process of SIS and other infrastructure activities; (v) Ensure that gender, poverty and social development issues are incorporated and implemented in all project components, including infrastructure and other services, capacity building, and development programs; (vi) In collaboration with the Resettlement Specialist, design activities for VWRCCs, RBGs, infrastructure maintenance groups, and women ward members, to ensure efficient targeting of the rural poor including women; and
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(vii) Ensure implementation and monitoring of the Gender and Social Inclusion Action Plan. 14. Project Economist (48 p-m, national)
44. The Project Economist will have at least a Bachelor‟s degree in Economics and 10 years professional experience with prior experience on the economic analysis of road projects.
(i) Where new road subprojects may require assessment of economic justification, or where there have been substantial changes in identified costs for proposed road subprojects, he/she will undertake appropriate economic justification analyses to assess the economic feasibility of these proposals. (ii) Such economic analyses may be undertaken on the basis of cost-effectiveness for new earthen rural roads with low traffic volumes (less than 60 vpd). For road subprojects involving significant upgrading of existing rural roads (such as to gravel surface or bitumen seal surface), and with significant traffic volumes (more than 60 vpd), economic justification will typically be done using a conventional cost benefit approach over a minimum 20 year period, and identified Economic Internal Rate of Return (EIRR) with appropriate sensitivity tests.
15. Planning, Monitoring and Evaluation Advisor (48 p-m, national)
45. The Advisor will have relevant professional qualifications, combined with at least 10 years experience of the decentralized planning, monitoring and evaluation of rural road and other rural infrastructure investments. The Advisor will be responsible, under the supervision of the Team Leader, for the following main tasks:
(i) Review the rural infrastructure planning process and procedures, and the District Transport Master Plans of participating districts, and assist the DDCs to improve these as necessary. (ii) Contribute to the Project Procedures Manual in respect of the definition of the planning and selection procedures for rural transport infrastructure subprojects and supplementary community infrastructure investments.
(iii) Oversee the preparation of a training program for the DDCs, DTOs and VDCs in the planning and selection procedures for rural transport infrastructure subprojects and supplementary investments.
(iv) Oversee the arrangements for provision of guidance to the DDCs in the identification and prioritization of subprojects, and the conduct of feasibility studies.
(v) Support the DDCs, VDCs, DTOs and DISC teams in village level consultations and planning for supplementary investments.
(vi) Provide advice and assistance to participating DDCs in improving their planning processes for better integration and co-ordination of rural infrastructure development with other rural development activities.
(vii) Assist DOLlDAR in implementing the monitoring activities required under the Project Performance Management System. This will include an overview of project activities in the districts, and the review of all regular progress reports submitted to the PCU.
(viii) Support other members of the team in undertaking periodic checks to test the accuracy of measurements by the DISC teams.
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(ix) During the working seasons, make frequent visits to the work sites to conduct monitoring of critical aspects of construction works. This is to ensure that construction activities comply with the agreed specifications, standards and norms, are cost-effective and are meeting defined quality requirements, and that laborers are being paid fairly.
(x) Produce regular reports on the findings from the monitoring of critical aspects. These should: (a) highlight areas of deviation from project specifications and quality standards, with reasons where identified; and (b) propose practical modifications either to the existing working procedures or the project standards, for consideration by DOLIDAR.
(xi) Assist the PCU in the preparation of monitoring reports.
(xii) Assist and support DOLlDAR in implementing the impact evaluation aspects of the Project Performance Management System.
(xiii) Supervise the collection of baseline and follow-up surveys of socio-economic conditions and characteristics in the subproject areas, and the conduct of other surveys, required for impact evaluation.
(xiv) Using DOLIDAR's existing facilities store and maintain computerized database records of the survey information. Provide database outputs to assist the work of the department as well as of the project.
(xv) Assist in the analysis of the survey results and the production of analytical reports on: (a) the pre-project situation in the target areas; and (b) changes detected by the follow-up surveys, in terms of the contribution of project interventions to achieving the purpose defined in the Design and Monitoring Framework (DMF).
(xvi) Assist in the conduct of monitoring and evaluation of land acquisition and compensation under the project.
(xvii) Assist the PCU in preparing annual monitoring and evaluation reports. Assist in the preparation of a final report presenting the full findings on the impact of the project.
16. Senior Computer and Mapping Officer (48 p-m, national)
46. The Senior Computer and Mapping Officer will be a university graduate in computer science, and will have a minimum of 7 years of professional experience in computerized civil engineering and mapping applications for planning, design, and construction works, and preferably 3 years prior experience on rural roads planning, design, and construction works. The Officer will maintain all computer applications used on a day-to-day by the CISC staff on an up-to-date basis; carry out “trouble-shooting” activities in the event that computer applications are found to be defective; and be available as might be required to train, mentor, and coach, computer operators at both the centre and the district level, in order to carry out the project works in an efficient, effective, and timely manner.
17. Bio-engineering Officer (Climate Change Officer) (48 p-m, national)
47. The position calls for a minimum of 10 years relevant professional experience in bio- engineering works, including survey, design, and specification of materials, for bio- engineering works; establishment and management of nurseries; and monitoring and supervision of bio-engineering works. The Bio-Engineering Officer shall have a university level qualification in engineering, science, or arts.
(i) Review all proposed road subprojects to ensure appropriate bio-engineering works are included, so as to “climate proof” the proposed rural roads.
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(ii) Where the bio-engineering designs are found to be inadequate, he/she will prepare a detailed listing of the additional bio-engineering works required to bring the proposed road subproject to the required standard. (iii) As required, conduct training of DISC staff in bio-engineering techniques. (iv) Monitor the implementation of bio-engineering works across all the districts in the Project, and initiate corrective action to improve implementation procedures where found appropriate.
C. District Implementation Support Consultant (DISC)
48. An indicative composition of a DISC team will comprise any or all of following consulting positions. The final composition and level of inputs required will however vary from district to district. For those districts where there are major ongoing road subproject preparation and implementation activities, a full complement of DISC team staff will be required. In other districts where only limited work will be undertaken in the next phase of DRILP, there will only be a limited need for DISC team inputs.
National Consultants: No. p-m Team Leader / Engineer 1 48 Sub-engineers 3 144 Supervisors 5 240 Social Mobilization Coordinator 1 48 Social Mobilizers 2 96 Total 576
49. A generic terms of reference for individual members of the DISC is provided below:
Team Leader / Engineer
50. The DISC Team Leader will have as a minimum qualification a Bachelor‟s degree in civil engineering and a minimum of 7 years‟ relevant professional experience. The Team Leader is required to be registered with the Nepal Engineering Council in accordance with the Nepal Engineering Council Act,
51. The Team Leader will:
(i) Lead both the technical and social teams in the DISC, and be responsible at all times for the overall implementation, coordination, administration and management of the whole DISC team (ii) Work closely with the DPO and the DTO at the district level, and the PCU, the CISC, and the NNGO, at the central level, to ensure the efficient, effective, and timely implementation of the subproject/s, including for all activities such as planning, surveys, design, construction, supervision, monitoring, and reporting, as may be required.
18. Sub-Engineer
52. The Sub-Engineer will have as a minimum qualification a Bachelor‟s degree in civil engineering and a minimum of 3 years‟ relevant professional experience. The consultant is required to be registered with the Nepal Engineering Council in accordance with the Nepal Engineering Council Act, 205.
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53. The Sub-Engineer will assist the Team Leader to undertake the technical aspects of the subproject roads and community investments, including (but not limited to):
(i) Planning, identification, selection and prioritization of road subprojects and community investments; (ii) Review relevant earlier works and studies, and collect required data (including rural road inventories and condition surveys for road maintenance planning); (iii) Conduct studies, field surveys, and investigations; (iv) Prepare designs, drawings, cost estimates, and action plans; (v) Carry out construction supervision (in conjunction with the DISC supervisors); (vi) Prepare and recommend interim payment certificates; (vii) Plan and execute commissioning activities; and (viii) Prepare and recommend final payment and completion certificates.
19. Construction Supervisor
54. The Construction Supervisor will have a minimum qualification of TSLC/sub-overseer, with a minimum 3 years of construction supervision experience for hill roads using LEP/LBES construction techniques.
20. Social Mobilization Team
55. The Social Mobilization Coordinator will have a minimum of 5 years‟ relevant professional experience. The Social Mobilizers will have a minimum of 3 years‟ relevant professional experience. They will be hired from the consulting firm providing the DISC services. The SM should be local and preference will be given to women and those from excluded groups. They should have the strong social background with knowledge of local gender and social issues, local resources, and services and good interpersonal skills to establish linkages with various other line agencies in the district to access resources and services.
56. The key functions areas for the SM team are:
(i) Social mobilization for group formation, strengthening, and linking with microfinance institutions/cooperatives; (ii) Resettlement and compensation related issues; and (iii) Implementation of focused skills enhancement training including preparation of eligible list of participants for the training, facilitation of community consultations, and support/facilitation to training provider in the conduct of the training.
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APPENDIX 6: TERMS OF REFERENCE FOR NATIONAL NGO
A. Background
57. A National Non Governmental Organization (NNGO) will be engaged under the Project to supervise and monitor the community mobilization and other social development activities in the districts and to carry out several social surveys in all project participating districts. The NNGO will work closely with the Social Mobilizers in the District Implementation Support Consultant (DISC) teams to implement social development services including livelihood enhancement activities and intensive social mobilization in all subprojects. The NNGO will undertake a baseline survey within 6 months of the start of the Project and subsequent outcome monitoring surveys. The NNGO will report to the Project Coordination Unit (PCU) in DOLIDAR and will coordinate activities and work closely with the Central Implementation Support Consultant (CISC) and DISCs.
58. The NNGO should have an established track record of working on social issues and have a strong social and gender team.
B. Scope of NNGO Services
59. The NNGO will assist the PCU, in close coordination with CISC, DISCs and other stakeholders, in implementing the Project. The NNGO will provide the following services to the Project:
1. Assist PCU in social Development aspects during sub-project planning, designing and implementation period 2. Design, develop indicators and conduct social studies (baseline survey, outcome surveys, impact studies in coordination with DISC 3. Develop/produce appropriate social mobilization guidelines, community development guidelines, training and other relevant guidelines pertaining to the project with coordination with CISC 4. Assist PCU for Microfinance access facilitation under the project 5. Assist PCU to enhance district capacity especially on social aspect 6. Assist PCU in selecting Vocational training providers and Microfinance providers 7. Provide social inputs in all aspects at district and central level 8. Ensure gender, poverty and inclusion are incorporated in all activities 9. Ensure women and disadvantaged groups‟ involvement and participation in all activities of sub-project implementation 10. Supervise, monitor and evaluate the social development activities conducted by the district social mobilization team and report to PCU 11. Support DISC team to plan and implement social safeguard instruments and mitigation measures to minimize the adverse impact of project 12. Support DISC team for planning and conducting sub project level capacity enhancement activities including livelihood related skills trainings 13. Support DISC team to ensure fair working condition 14. Support and provide skill to the district social mobilization team on transparency and accountability in all activities of the sub projects through community based monitoring system, public hearings and public audit 15. Facilitate assessment, selection and conduction of Life Skills Trainings with monitoring of such training activities and its outcome in entrepreneurship development
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16. Coordinate and Liaise with the PCU, CISC and DISC. 17. Support district team to conduct annual outcome monitoring survey and compilation, interpretation and preparation of the report 18. Facilitate DISC for implementation of Indigenous People Plan Framework (IPPF) 19. Participation in trainings, workshops and meetings regarding on the project matter at central and district level as needed C. Indicative Staffing 60. The Team Leader of the NNGO should have academic background in the social sciences with previous experience as a social development expert. The NNGO‟s indicative staffing is shown below
NNGO Composition No. P-m Team Leader 1 48 Social Development Advisor 1 48 Social safeguard( Social inclusion) Advisor 1 48 Capacity development/Vocational Training Advisor 1 48 Micro Finance Advisor 1 48 Gender and Social Inclusion officer 1 48 Social development /Socio economic Officer 2 48 Support Staffs 61. The social development/ safeguard advisor could be teamed up (i.e., twinning arrangement) with a DOLIDAR staff for institutional capacity building.
62. The TOR and required qualification and experience of key personnel are as follows:
No. Qualification Experience Roles and Responsibilities Team 1 Masters 10 years of relevant The Team Leader shall be responsible for Leader Degree in professional working overall assignment, implementation and Social experiences; Completed at deliverables of services as per scope of Science / least two donor funded project. S/He will be maintaining liaison and Management projects; effective coordination with all stakeholders and prepare communication and group reports. TL is to assist and facilitate PCU in dynamics and ability to need assessment and selection of local NGOs undertake extensive travel and microfinance institutions. in remote area of project Assist and advice PCU in all aspects of social districts. activities. Prepare and supervise GESI mainstreaming progress. Develop a modality of Monitor and evaluate of district activities. Finalize guidelines and formats, comprehensive social support system for DRILP. Together with other team members, prepare and implement a consultation and participation plan of significant issues related to participation, gender, indigenous or vulnerable people, poverty, labor, affordability or other social risks, including the need to prepare any action or mitigation plans or other measures.
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Social 1 Masters 7 years working SDA shall perform the activities under the Develop Degree in experiences in social direct supervision of team leader and act as ment Social development field; deputy team leader in absence of team Advisor Science/Rura preferably experience of leader. S/he should manage to support district l conducting social social mobilization team at district level. It Development mobilization in experience includes supporting district teams to minimize or in participatory rural the adverse impact of project. The role of SDA Management infrastructure projects, varies to provide trainings to social having knowledge and mobilization team at districts to carry out skills on community feasibility study, social screening and social facilitation, participatory assessment, well being ranking system, appraisal, process baseline survey and outcome monitoring approach, practice on survey. S/he shall also responsible for welfare schemes, supporting to social mobilization team at trainings, skills of report districts for sub project level activities such as preparation and DRCC formation, VWRCC formation, BGs presentation regarding on formation and prepare to community the project measures; participation and mobilization. effective communication and group dynamics and ability to undertake extensive travel in remote area of project districts. Social 1 Masters 7 years work experiences SSA shall perform the activities under the safeguar Degree in in social development direct supervision of the team leader. Her/his d Social field; preferably major responsibility is to develop screening of (Social Science/Man experience of conducting sub project, social impact assessment, and Inclusion) agement social mobilization, preparation of sub-project specific IP Advisor Safeguard experience in plans/activities for sub projects. S/he should participatory rural ensure to involvement of social team at infrastructure projects, districts and their role of IP in the community having knowledge of ADB participation i.e. Supervision, monitoring and social Safeguard approach evaluating the social safeguard mitigation and modality especially measure. Furthermore S/he should arrange social inclusion practice on awareness program, collection of HH level welfare schemes, effective information, conduction FGD through DIT. communication and group The task of social safeguard advisor is varies dynamics and ability to from develop manual of social safeguard, undertake extensive travel dissemination of Key positive and negative in remote area of project project impacts on IPs, positive and negative districts. project impacts on IPPS, possible IPP Mitigation Measures, designing of survey questionnaire, process and methodology for safeguard measurement. S/he also responsible to support and capacitated to social mobilization team of Districts and reporting to PCU about Social Safeguard issues.
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Capacity 1 Masters 7 years working Capacity Development Advisor shall perform developm Degree in experiences in the the activities under the direct supervision of ent/Vocat Social capacity development and team leader. ional Science/Man community empowerment S/he should design, plan manage and Training agement field and at least 3 years coordinate all capacity building activities to Advisor experience of need the district level social mobilization teams on assessment, designing, community development, social mobilization, curriculum development participatory approach, gender and and training evaluation development and on other subject matter as and conducting livelihood/ required. vocational skills development trainings, S/he will undertake preparatory steps , needs sound knowledge and assessment, of vocational training institutions skills on facilitation, and activities in district communication and S/he should support to conduct and organize reporting of trainings, trainings and workshops at district and workshops, seminar and public hearings, audits community level on conflict management, etc.; willing to frequently institutional development and entrepreneurship development. field visit in remote area of project districts. The role of CDA also includes conducing trainings to district team on contemporary issues of district and community like health and hygiene, reproductive health, nutrition, HIV AIDS, water and sanitation, child right and child protection, empowerment, savings and credit, good governance and project management. Developing training manuals well as guidelines The CDA also shall work with PCU to Conduct, organize and facilitate annual review meetings annually at centre on behalf of project. Moreover, CDA shall assist and facilitate PCU to conduct and organize ICC (Implementation Coordination Committee) meeting at central level. Micro 1 Masters 7 years working Micro Finance Advisor shall perform the Finance Degree in experiences in the rural activities under the direct supervision of team Advisor Social micro finance and leader and close coordination with Subject Science/Man entrepreneurship Matter Specialists. Her/his major responsibility agement development in rural will be support district for micro finance infrastructural projects; 3 activities at district. Initiate series of field years experience of reviews in the 9 districts to make assessment conducting savings and of facilitation assistance to support the credit activities, microfinance access initiative in each district cooperatives and related to specific sub project ZOIs. S/he shall enterprise development responsible for supporting districts to income field, experience of generation and micro credit facilities and trainings, curriculum develop linkages with Financial development and Intermediaries. Assist to formation of groups monitoring and evaluation through saving and credit groups aim at of income generation, skill encouraging the rural poor/BGs members. enhancement or Support BGs members to implement a saving employment creation scheme among its members. Develop a plan schemes; (iii) preferably, to mobilize savings. Conduct TNA related to
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experience in participatory MF and organizes training in 9 of the project rural infrastructure district. Access to existing MF sources for projects, willing to viable economic activities in SP areas. frequently field visit in remote area of project districts. Gender 1 Bachelor's Bachelor‟s Degree in GESI Officer shall perform the activities under and Degree in development field the direct supervision of team leader and with Social Social (Sociology/Anthropology close coordination of GESI Advisor of CISC. Inclusion Science/Man or Rural Development) / Her/his major responsibility is to support officer agement Economics/ Management district for gender and social inclusion with at least 5 years activities, preparation of SAP/ GAP/ GSIAP at working experiences in central and district level. S/he also shall gender and social responsible for ensuring participation and inclusion in development benefit sharing to women, dalit, ethnic people projects; at least 3 years and indigenous people in the project district. experience of conducting S/he should assess the project's potential social surveys, preferably impacts on women; assess special needs of in participatory rural poor and vulnerable women and their infrastructure projects preferences for road access to knowledge and skills on markets/services, employment and income socio economic analysis, generation opportunities. S/he should also poverty analysis and responsible to prepare a gender strategy, outcome assessment in including concrete targets and indicators to capacity enhancement, maximize project benefits to women and income generation and mitigate any adverse impacts to them. livelihood restoration sector; (v) willing to frequently field visit in remote area of project districts. Social 2 Bachelor's Bachelor‟s Degree in SDO shall perform the activities under the developm Degree in development field direct supervision of team leader. S/he should ent Social (Sociology/Anthropology manage to support district social mobilization /Socio Science/Man or Rural Development) / team to minimize the adverse impact of economic agement Economics/ Management project. The role of SDO will be to provide Officer 5 years working trainings to social mobilization team at experiences in community districts to carry out feasibility study, social mobilization; preferably, screening and social assessment, well being experience in participatory ranking system, baseline survey and outcome rural infrastructure projects monitoring survey. S/he shall also responsible having knowledge and for supporting to social mobilization team at skills on socio economic districts for sub project level activities such as analysis, poverty analysis DRCC formation, VWRCC formation, BGs and outcome assessment formation and prepare to community in capacity enhancement, participation and mobilization. S/he should income generation and spend at least 50% of time in project areas to livelihood restoration support local stakeholders. sector; willing to frequently field visit in remote area of project districts.
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APPENDIX 7: MICROFINANCE ACCESS
A. Background
63. Despite the small size of the country, Nepal has a reasonably diversified finance sector, which has grown at a substantial rate since the beginning of sector reform in the 1980‟s. The Nepal Rastra Bank (NRB), the Central Bank regulates and licenses financial institutions. The number of financial institutions grew from just 7 in 1990 to 98 in 2000, and further to 254 in January 2010. Rural finance institutions are a subset of the broader financial sector covering financial intermediaries (both formal and semiformal) that provide services in the rural areas11 and are typically categorized as either formal, semiformal, or informal institutions. Formal institutions comprise those that are licensed and supervised by NRB, including commercial banks, development banks, micro-credit development banks, savings and credit cooperatives, and microfinance NGOs. Semiformal institutions are registered under nonfinancial legislation such as the Cooperative Act (1992) and the Societies Registration Act (1977) and comprise (unlicensed) microfinance NGOs and cooperatives. Informal sources are relatives, friends, money lenders, and traders. Formal institutions represent only a small number of rural financial institutions but a large part of rural credit. However, their coverage is largely limited to the terai with very small, if any, presence in the hills and mountains. Included in the semiformal sector are an estimated 2,300 cooperatives and 15,000 microfinance NGOs that provide financial services to poor and low-income, including women, and commonly take deposits without license.
64. Of the formal rural finance providers, public rural finance institutions dominate the sector and three institutions – the Agricultural Development Bank Limited (ADBL), Small Farmers Development Bank, and the regional development banks (Grameen Bikash Banks) – account for more than 60% of the rural finance outreach from the formal and semiformal institutions. The government has also endeavored to improve access to rural finance by a range of interventions including: (i) directing public and private banks to allocate 3% of their total loan portfolio to low-income households and small businesses (the deprived lending scheme); (ii) creating the Rural Self Reliance Fund (RSRF) within the NRB in 1990 to provide wholesale funds to organizations offering financial services in rural areas, such as savings and credit cooperatives and microfinance NGOs; and (iii) supporting the creation of the Rural Microfinance Development Centre (RMDC), which is jointly owned by private commercial banks and the government, including NRB, as a private microfinance apex organization.12 Directing banks to allocate funds has not been successful due to a combination of its distortionary impact and the option for the banks to adopt the less- complex and often lower-cost option of paying any government imposed fines. RSRF faced a major problem of the relative isolation of most of its wholesale borrowers, who faced significant transaction costs in obtaining funds for onlending to their poor members. The establishment of RMDC was aimed at addressing these constraints and making rural credit readily available to potential borrowers, particularly in the terai but also to a more limited extent in the hill mountain districts.
B. Availability of Rural Finance
65. A rapid review of the main parts of the rural finance wholesaling system in Nepal during the PPTA suggests that there are sufficient funds available for lending to small
11 These include commercial banks whose head offices are in urban areas but who offer services in rural areas. 12 RMDC was established under the ADB-funded Rural Microfinance Project (ADB. 1998. Report and Recommendation of the President to the Board of Directors: Proposed Loan for the Rural Microfinance Project in Nepal. Manila.)
61 ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II Final Report – Linked Document 2: Project Administration Manual farmers and women in the DRILP project areas and that there is no need for additional credit to be made available from the extremely limited project funds.
66. The three major wholesale sources of funds include RSRF, RMDC and the Small Farmers Development Bank, as well as institutions such as ADBL.
Rural Self Reliance Fund (RSRF). Created by the Government in 1992 to provide financial assistance to deprived sections of rural communities for carrying out income-generating activities through SCCs or NGOs. RSRF has provided limited wholesaling facilities to ADB projects such as the Microcredit Project for Women.13 Experience reported elsewhere indicates that access to RSRF is complicated by its remoteness from the prospective borrower groups, which imposes a large transaction cost on them in terms of travel cost and time. This is particularly critical in the remoter hill and mountain districts, and limits the extent that the institution can provide the required services.
Rural Microfinance Development Centre (RMDC). Established under the ADB- funded Rural Microfinance Project as an organization responsible for the delivery of wholesale microfinance funds, provided predominantly by ADB, to the Grameen Banks, Grameen Bank Replicators, NGOs and cooperatives. By project completion, the project had actually reached about 400,000 through 58 implementing agencies, which extended about 1.2 million sub-loans to microenterprises and over 364,378 sub-borrowers participated in different capacity-building programs (trainings, workshops, and exposure visits) through the financial and technical support of the Project. Sub-borrowers were organized into groups that collectively mobilized over $21 million. The project was concluded to be successful in its promotion of microfinance and credit provision is understood to be continuing in a successful manner. Small Farmers Development Bank (SFDB). A key component of ADB‟s Cluster Program for the rural finance sector14 is the institutional restructuring and reforms of the Small Farmers Development Bank (SFDB), which was previously separated from ADBL. SFDB is proposed to become an apex bank for small farmer cooperatives with a strong grassroots orientation that will deepen rural finance outreach and make financial services more inclusive, especially to women. The restructuring plan proposed to expand microfinance services in the hill and mountain districts particularly by assisting cooperatives, self-help groups and microfinance NGOs. SFDB currently has 219 partner Small Farmer Cooperative Limited (SFCLs) for onlending, of which 50 SFCLs are operating in the hills and mountains. As a pioneer institution for wholesale lending to cooperatives, SFDB envisages expanding financial service outreach in the hills and mountains by further strengthening its partner SFCLs as well as extending support other microfinance NGOs and self-help groups in those areas.
C. Scope of DRILP – Additional Financing Support
67. Based on this rapid review of recent activities in the rural (micro)-finance subsectors it appears evident that the main constraint to access finance is related to the capacity of various forms of rural groups to access available credit rather than the level of credit
13 ADB. 1993. Report and Recommendation of the President to the Board of Directors: Proposed Loan and Technical Assistance to the Kingdom of Nepal for the Microcredit Project for Women. Manila. 14 ADB. 2010. Report and Recommendation of the President to the Board of Directors: Proposed Loan, Grant, and Technical Assistance Grant Nepal: Rural Finance Sector Development Cluster Program (Subprogram 2). Manila.
62 ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II Final Report – Linked Document 2: Project Administration Manual available. There has been major emphasis for many years on group formation through savings and credit groups and similar organizations aimed at encouraging the rural poor to make limited savings for self-financed credit as well as to access various sources of rural credit.
68. Under DRILP, direct employment on the rural transport and community infrastructure subprojects will provide cash incomes to members of Building Groups. The project will support BGs to implement a savings scheme among its members. Achieving regular savings will help the poor learn how to save and to manage these savings to improve their living conditions or to invest in productive assets. For each subproject, an income uplifting micro- plan will be prepared to mobilize savings from the employment for the use of new sets of skills acquired from the livelihood focused training that the Project will also provide. The plan will examine long-term local employment opportunities and options for external resources, if required. Suitable mechanisms will be identified for a business expansion plan to link with available or expected financial institutions in the local area.
69. These savings and credit schemes currently perform a vital role in poor rural communities – they manage and administer the groups‟ savings while encouraging a culture of savings amongst members, and they provide an accessible facility especially to poor members, to meet their immediate and short-term finance requirements. If they meet the criteria for operating as an SCC, these savings and credit schemes can access available credit from existing institutional suppliers, most of which do not require the traditional collateral, to support viable economic activities of its members. At present, the accumulated savings within the groups are lent out to members for critical emergency loans (e.g., medical emergencies) at more advantageous terms compared to that of informal credit markets.
70. In nine of the 18 project districts, the Project will facilitate microfinance access for BGs and savings and credit groups (SCGs). Working with existing SCGs, or assisting BGs wishing to form themselves into formal Savings and Credit Cooperatives (SCCs), the Project will strengthen existing groups, including BGs that are effectively operating as SCCs, and assist them to form into groups to pool and manage their resources and to strengthen their capacity to access existing credit channels. Local NGOs based in the pilot districts will be engaged to work closely with BGs to form savings and credit cooperatives, assess the local situation in terms of microfinance demand and supply, support the organizational development of the groups and facilitate access to existing microfinance sources for viable economic activities.
1. Implementation Arrangements
71. The National NGO will undertake preparatory steps to lay the groundwork for microfinance access facilitation under the Project. The NNGO will:
(i) Undertake a quick study of the local situation in the 18 project districts in terms of current capacity and demand to access available credit from one of the existing wholesalers amongst existing savings and credit groups and/or cooperatives, SFCLs, building groups or other similar groups. The study will recommend the selection of nine target (pilot) districts that will be the coverage of microfinance access facilitation support from the Project.
(ii) Initiate a series of field reviews in the 9 districts to make a first assessment of the best form of facilitation assistance to support the microfinance access initiative in each district related to the specific subproject ZOIs. Based on similar initiatives, the considered approach will be by engaging local NGOs working in rural finance sector to provide this facilitation. National organizations working in the rural
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finance sector, and others (such as MEDEP, EAFSP, etc) may present an alternative approach.
72. The NNGO will have an ongoing role of monitoring the activities of the local NGOs, including collection and presentation of overall data, and in guiding, training, and assisting the local NGOs if necessary. The NNGO in consultation with the PCU, will prepare TORs to engage suitably qualified local NGOs. The DDC engages the local NGOs using project funds.
2. Indicative TORs for Local NGOs Facilitating Microfinance Access
73. The local NGOs will:
(i) Undertake formation of savings and credit cooperatives (SCCs)/SFCLs among Building Groups depending on local preference and the level of individual Villages Development Committee (VDC) in each of the subproject areas.
(ii) Identify the existing potential groups in the subproject areas or in the VDC, and propose a program for their strengthening together with formation of new groups where none exist, or propose a new program of group formation.
(iii) Assess the local situation in terms of microfinance demand and supply, and work closely with the groups to identify priority areas for microfinance support that are in line with the new sets of skills acquired from the Project-sponsored livelihood focused training and any planned economic activities.
(iv) Support the organizational development of the groups in line with building their capacity to access available credit, manage the credit funded activities and service the borrowed funds.
64 ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II Final Report – Linked Document 2: Project Administration Manual
APPENDIX 8: GENDER EQUALITY AND SOCIAL INCLUSION (GESI) ACTION PLAN
S.N. Activities Performance Indicators and Targets Responsibility Output 1. Rural Transport Infrastructure Network Extended and Maintained: Increases mobility, better access to resources and services, market and linkages that increases income and employment opportunities, better social services. Conduct a baseline socio-economic The updated baseline data disaggregated NNGO/ CISC survey through collection of sex, caste, by sex, caste, ethnicity and minority groups and DISC/PCU ethnicity and minority groups collected within 6 months of the start of the disaggregated data of the project project. districts. Conduct poverty mapping of subproject areas (ZOI) to identify poor, Poverty mapping carried out in sampled excluded and most vulnerable (20%) subproject areas and criteria households. Based on the poverty includes indicators on income, mapping carry out Gender and social heath/nutrition, education, occupation, inclusion assessment of the subproject social capital, existing infrastructure area to identify specific constraints, facilities, female household heads barriers and opportunities to their (FHHs)15. Gender and social inclusion participation in project activities. assessment carried out and GESI Action plan/social action plan prepared for all sub projects. Ensure participation of women and 40% women of the total participants and DPO/DISC excluded, minority groups in project proportionate representation from all caste, /CISC and related consultations, orientation, ethnic and minority groups as per their NNGO planning, management, public and social population proportion in the districts. auditing, and issues related to resettlement, displacement and maintenance of rural roads. Ensure representation of women and BG: 40% women and proportionate DPO/DISC excluded groups in Building Groups representation from excluded groups. /CISC and (BG), District Road Coordination BG leadership: 33% women from all caste, NNGO Committee (DRCC), road maintenance ethnic and minority groups. committee (RMC), Compensation DRCC, CDC, RMC and GRC: 33% women Determination Committee (CDC) and and proportionate representation from Grievances Redress Committee (GRC) excluded groups. in project districts. Provide capacity development program 20 RBG members receive training on DPO/DISC for women and excluded on road routine maintenance, nursery preparation /CISC and maintenance. and bio-engineering etc. NNGO Ensure participation of women and At least 40% of the participants in all DPO/DISC excluded in orientation programs on training are women and proportionate /CISC and project approaches, health and representation from excluded groups. NNGO sanitation, local governance, safety measures including implementation of GESI action plan. Apply the policy of employing local Women and men BG members are DPO/DISC people in BGs with preference to provided equal opportunity as supervisors /CISC and affected families, dalits, IPs, and and laborers and receive equal payment NNGO excluded and the policy of equal pay for for work of equal value. work of equal value in employment for Women provide 40 % of the employment rural roads. generated. Output 2. Supplementary Investments provided for community Infrastructure: Reduces women’s drudgery, provides access to new opportunities and markets, and increases mobility, increases more time for productive activities. Identification and selection of Out of the total consulted for project site DISC/DPO supplementary infrastructure site and selection and identification 50% are women project selection in a participatory and proportionate number of excluded manner based on community demand. groups. DPO/DISC Of the total SCIs constructed 15% are
15 Female headed households (FHH) refers to households without adult males, widows, separated, divorces, unmarried and „de facto‟ women heads whose husbands have migrated for work for long period of time.
65 ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II Final Report – Linked Document 2: Project Administration Manual
S.N. Activities Performance Indicators and Targets Responsibility targeted to meet the specific needs of women and 10% the needs of other excluded groups. Ensure participation and representation Women make up 40% of the BGs and 33% DPO/DISC of women and excluded in the in VWRCC and committees with at least infrastructure user committee, Village one key position in operation, Workers Coordination Committee management, maintenance and monitoring (VWRCC), operation and maintenance committees and proportionate committee. representation from other excluded groups. Provide SCI operation and maintenance Women are at least 50% of those trained DPO/DISC training Output 3: Income Generating Capacity of Rural Households Enhanced: Enhances socio-economic conditions of the rural poor, women and excluded through improved accessibility to economic opportunities such as access to finance, skills training and better opportunity through linkage to other local services. Identify and conduct special livelihood At least 70% of the BG members are NNGO/CISC/ enhancement training programs in the targeted for the skills training of which at Training areas of agriculture, carpentry, furniture least 50% are women and proportionate providers. making, nursery, driving, hotel representation from excluded groups as management, computer training, house per the Training Implementation Plan (TIP). DPO/DISC wiring, health trainer, auto mobile repairing and maintenance, NTFP Priority given to women, poorest processing. households and individuals from DAG group. Group mobilization of SHGs through Relevant social mobilization strategy, NNGO/ social mobilization including saving and guideline and relevant capacity building credit, record keeping, institutional training manuals, tools developed. CISC/DPO/DIS capacity building by federating into C SFCLs/SCCs and ensuring support for 70% of the SHG members are women and micro-finance proportionate number of other excluded groups.
Establishment of Revolving Fund Management Committee with representation of at least one woman and one representing excluded groups. Provide enabling work environment for At least one child care center is operating DPO/ women and marginalized by providing in each project district during the working child care facilities, separate toilets for season. women and men, health and safety, and insurance at the work place. Output 4: Support for Project Management and Capacity building: For increased gender and social inclusion responsive planning, budgeting and program implementation. Adopt GESI plan and formulate output Annual output based central and district PCU, f CISC, based annual plan for implementation. plans are developed, implemented and /NNGO,DISC, Instruct and orient DPO to prepare reported. DPO district level output based annual plan and implement and report accordingly. Provide GESI orientation to DOLIDAR/PCU/DPO/DDC/DTO/DRCC are PCU, DOLIDAR/PCU/DDC/DTO/DPO/DRCC capacitated and equipped to effectively CISC,NNGO including mainstreaming tools and on the mainstream GESI and implementing district DPO, DISC GESI Action Plan. specific GESI plans. Ensure that all project related activities At least 33% women participation in the PCU, (training, exposure visit, periodic events. DOLIDAR/NNG meetings, review meetings) provided to O PCU/DTO/DPO integrate GESI related All stakeholders are aware of GESI issues issues and targets women staff and staff and taking the effort in mainstreaming from excluded groups. GESI concerns while implementing activities. Establish a monitoring system with sex, Output and achievement on GESI CISC, NNGO, caste, ethnicity and minority group disaggregated by sex, caste, ethnicity, and PCU, DPO, disaggregated data including poverty minority groups are available and progress DISC. data. Establish quarterly review, update of GESI plan included in progress monitoring and reporting system against reports.
66 ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II Final Report – Linked Document 2: Project Administration Manual
S.N. Activities Performance Indicators and Targets Responsibility indicators/activities as per GESI plan. Monitoring team consists of at least one gender and social development expert. Integrate GESI measures and monitoring Project design and monitoring framework, CISC, NNGO, indicators in project operating guidelines, guidelines and strategies incorporate GESI PCU, DPO, sub sector strategies, institutional indicators as per the GESI Action Plan. DISC mechanisms, program budget. Provisions as per the MLD‟s GESI policy and GESI policy of the rural transport sector are considered. Designate Social development officers At least 33% women officers (technical/non DOLIDAR, PCU, each in the PCU and DDC/DTO. Hire technical) in PCU/DTO/DPO. At least 40% DPO, DDC consultants at the Central of eligible women and excluded Implementation Support unit and District caste/ethnic groups in other project related implementation support unit. positions including junior technicians and road supervisors at center and districts.
Hire SM locally. At least 50% of SM are women and DPO, PCU, proportionate number from excluded and DDC minority groups
Note: GESIAP = Gender and Social Inclusion Action Plan; RBG = Road Building Group, UC = Users Committee, SCCs = Saving and Credit Cooperatives, DAG = Disadvantage Group, RMUCs = Road Maintenance User Committees, IGA = Income Generating Activities, CBOs = Community Based Organizations, SCIs = Supplementary Community Infrastructures, DRCC = District Road Coordination Committee, VWRCC = Village Works Road Construction Committee, CDC = Compensation Determination Committee, GRC = Grievances Redress Committee
Decentralized Rural Infrastructure and Livelihoods Project II (DRILP II) (ADB TA No. 7573-NEP)
FINAL REPORT - Linked Document 3 – Development Coordination
Prepared for the Asian Development Bank and Government of Nepal
ANZDEC Limited in association with Consolidated Management Services Nepal (P) Ltd. August 2011
ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II Final Report – Linked Document 3: Development Coordination
CONTENTS
Page
I. DEVELOPMENT COORDINATION 1 A. Major Development Partners: Strategic Foci and Key Activities 1 B. Institutional Arrangements and Processes for Development Coordination 5 C. Achievements and Issues 6 D. Summary and Recommendations 6
ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 1 Final Report – Linked Document 3: Development Coordination
I. DEVELOPMENT COORDINATION
A. Major Development Partners: Strategic Foci and Key Activities
1. Current and recent external donor assistance to the rural transport infrastructure sector and rural infrastructure development in Nepal have come mainly from the Asian Development Bank (ADB), the World Bank, the Swiss Agency for Development and Cooperation (SDC), the UK Department for International Development (DFID), and the OPEC Fund for International Development (OFID). Other contributors to the rural road sector have included WFP, IFAD, GTZ, JICA, and other donors such as India and China. DRILP II will foster coordination between relevant recent and active donor projects, as shown in the table below.
Development Sectors and Themes Project Name Duration Amount Partner(s) Sector: Rural Transport ADB, SDC DRILP I 2005-2011 ADB: $40 Infrastructure and million Livelihoods SDC: $7.9 Themes: Economic million growth(widening access to markets and economic opportunities ) Sector: Rural Transport ADB, DFID, RRRSDP 2006-2011 ADB $50 Infrastructure and OFID, SDC million, DFID Livelihoods GBP 10 Themes: Economic growth million, OFID (widening access to $10 million, markets and economic SDC $1.5 opportunities) million Sector: Rural Transport DFID RAP Completion DFID Infrastructure and June 2011 Livelihoods Sector: Rural Transport ADB, OFID, Decentralized ADB CPS ADB: $25 Infrastructure and SDC Rural pipeline for million Livelihoods Infrastructure 2010-2012 OFID: $20 Themes: Economic and million Growth (widening access Livelihoods SDC: $7 to markets and economic Project II million opportunities) (DRIP II) Sector: Rural Transport SDC DRSP Scheduled $16.8 million Infrastructure and for Livelihoods completion Themes: Economic growth in July 2013 (widening access to markets and economic opportunities) Sector: Rural Transport World Bank RAIDP Scheduled $98 million Infrastructure and for Livelihoods completion Themes: Economic growth in December 2013
ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 2 Final Report – Linked Document 3: Development Coordination
2. A brief overview of the ongoing projects for development of rural transport infrastructure (mainly roads) in Nepal follows. As shown in the table above, of the six rural roads (ongoing and proposed), ADB is the lead donor in three of these.
1. DRILP
3. DRILP is funded by the GON, ADB, and the Swiss Agency for Development and Cooperation (SDC). It seeks to reduce rural poverty in 18 post conflict districts of Nepal (mainly in the hilly and mountainous northern districts of the country). The project began in October 2005, and is scheduled to be completed in October 2011. It has three main components involved in improving rural infrastructure focused on transport, community development and rural livelihoods restoration, and institutional strengthening/capacity building at the district level. DRILP aims to improve and rehabilitate 580 km of district roads. In addition, the project will implement trail bridges, and supplementary investment projects (such as schools, community centers, and the like), in villages adjacent to the road projects. The budget for the project is US$70 million.
4. The EA is DOLIDAR, and the IAs are the DDCs in each of the 18 project districts. The DTOs assist the DDCs to implement the project at the district level. The DTO is supported by a District Project Officer (DPO), a DISC team (District Implementation Support Consultant) to design and supervise the road improvement and supplementary investment activities, and local NGOs to implement social and capacity building activities. A Project Coordination Unit (PCU) located in DOLIDAR guides and monitors the project, with support from a Central Implementation Support Consultant (CISC) who provides specialist expertise to implement the project, and coordination between the DISC teams and the CISC.
2. Rural Access Program (RAP)
5. RAP is funded by the GON and the United Kingdom’s Department for International Development (DFID), and seeks to improve the rural road network in seven districts of Nepal. Phase I began in 2002 and finished in June 2008. In Phase I, in addition to sundry special investment subprojects, 357 km of district roads and 276 km of feeder roads were improved and rehabilitated. In Phase II, from October 2008 to June 2011, it is proposed to rehabilitate 365 km of district roads and build two major bridges, in addition to implementing sundry special investment subprojects. In Phase II, the project will also provide road maintenance funding for roads constructed in Phase I.
6. The executing agency for the project is DOLIDAR. The project is administered by a PCU located in DOLIDAR, Kathmandu and teams of consultants located in each district, and in Kathmandu. The road rehabilitation and maintenance is implemented by the DDCs at the district level.
3. Rural Access Improvement and Decentralization Project (RAIDP)
7. RAIDP is funded by the World Bank (WB). The objective of the project is to improve transport infrastructure and services, so residents of participating rural communities benefit from enhanced access to social services and economic opportunities. The project began in 2005 and is scheduled to be completed in December 2013. The project has two groups of components. The first group relates to rural transport infrastructure improvement, while the second group relates to capacity building and advisory services.
8. The rural transport infrastructure improvements include:
(i) rehabilitation and upgrading of 800 km of existing dry-season rural roads to all- season standard; ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 3 Final Report – Linked Document 3: Development Coordination
(ii) upgrading of about 200 km of existing rural trails and tracks to dry-season standard in remote hill districts; (iii) maintenance of about 3,500 km of rural roads, covering routine and recurrent maintenance; (iv) construction of 350 short-span trail bridges; (v) development of small-scale demand-driven community infrastructure subprojects, including construction of markets and community trails and roads; (vi) supporting resettlement and rehabilitation of people affected by the project; and (vii) implement a pilot rural transport services upgrading scheme.
9. The capacity building components include:
(i) implementation of training-related activities related to rural infrastructure development and management; (ii) provision of technical assistance and advisory services to DDCs and DOLIDAR; (iii) preparation of a GIS-based transport master plan; (iv) undertaking of policy, socioeconomic impact, and transport services studies; and (v) providing project implementation support, including logistics and operations costs, to DOLIDAR and the DDCs.
10. Initially the project operated in 20 districts, and had a total budget of US$44 million; however in 2009, the scope of the project was increased to 30 districts and the budget was increased to US$98 million.
11. The executing agency for the project is DOLIDAR, which facilitates the road transport infrastructure improvements undertaken by relevant DDCs with support from consultants. Local design and supervision consultants are employed on the road and bridge improvement activities. Road maintenance is performed by DDCs and Road Maintenance User Committees (RMUCs). In 2008/2009 the project provided US$4 million to DDCs for the maintenance of 2,225 km of district roads.
4. Rural Reconstruction and Rehabilitation Sector Development Program (RRRSDP)
12. RRRSDP seeks to:
(i) reduce poverty by improving rural connectivity and accessibility; (ii) enhance equity, employment, and income opportunities for the poor and disadvantaged; and (iii) strengthen the capacity of the MLD, DOLIDAR, DDCs, and the local communities in the program areas.
13. Funding agencies include ADB, DFID, SDC, OPEC Fund for International Development (OFID), GON, and the DDCs. The main components of the project relate to improved rural roads, supplementary infrastructure, community empowerment, and capacity building. The project proposes to improve and upgrade 859 km of rural roads in 20 districts affected by the recent civil conflict in Nepal. ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 4 Final Report – Linked Document 3: Development Coordination
14. Supplementary infrastructure relating to water supply and sanitation, social and market facilities, education, small scale irrigation, and trail links. A total of 1,360 supplementary infrastructure subprojects is envisaged.
15. The capacity building component will seek to develop implementation, operations and maintenance (O&M), and fiduciary management and safeguards compliance capacity, in MLD, DOLIDAR, and the DDCs. The project began in January 2007, and is scheduled for completion in December 2011. The overall budget for the project is US$104 million.
16. The executing agency for the project is DOLIDAR, supported by implementation and support consultants located in DOLIDAR and the DDCs. The road improvement activities will be implemented by relevant DDCs with support from district infrastructure support teams. Road improvement works will be performed by locally sourced Road Building Groups (RBGs) employing labor-based, environmentally friendly, and participatory approaches (LEP) for the work. Contractors will only be used to perform complex and difficult construction tasks (such as bridge construction).
5. District Road Support Program (DRSP)
17. DRSP has improved and rehabilitated rural transport infrastructure since 1999. The project has completed three phases, and is currently completing the latest, and final, phase. The project began work in six districts but in the final phase will only work in four districts. The project budget for the first three phases was US$33 million, with funding by SDC, GON, and the DDCs.
18. The project has two main components, namely rural transport infrastructure improvement, and capacity building. In the first three phases of the project, 500 km of all weather roads have been constructed. The capacity building activities have focused on developing the capacity of District Road Coordination Committees (DRCCs), Local Road Coordination Committees (LRCCs), and road construction groups.
19. Planning and implementation of the project activities are the responsibility of the relevant DDCs. DOLIDAR is the partner agency at the national government level. A Project Support Unit (PSU), located within DOLIDAR, is responsible for overall project coordination, execution, and administration.
20. The project has employed an LEP approach to improving rural infrastructure. The project has been able to generate one million worker days on road construction. DDCs contract and manage all construction activities. The chief planning and reporting documents are the annual plan of operation, annual report, and annual road maintenance plan, which are prepared by the DDCs.
21. The project has sought to maintain all improved roads by funding continuous routine maintenance. Routine maintenance is delivered by the “Length Person” system that is planned and managed by the DTOs on behalf of the DDCs. The next phase of the project will fund the routine maintenance of all maintainable district roads, and not just the DRSP improved roads.
6. Rural Transport Infrastructure Sector Wide Approach (SWAp)
22. The Rural Transport Infrastructure Sector Wide Approach (SWAp) with funding support from DFID and GON, is an innovative approach by the GON and the seven main rural road sector donors in Nepal. Together, they have agreed to a single, government-led, approach to developing and implementing rural road construction and maintenance in the country. The ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 5 Final Report – Linked Document 3: Development Coordination overall objective of this approach is to improve rural accessibility throughout Nepal. The main outputs of the approach are:
(i) Prioritized access needs identified through upgrading District Transport Master Plans (DTMPs) in accordance with DOLIDAR guidelines; (ii) All agencies involved in the planning and implementation of rural road development strengthened institutionally, and with enhanced capacities to undertake their roles and functions; (iii) Prioritized infrastructure, designed, costed, and constructed using labor based methods whenever appropriate; (iv) Review of DTMPs; and (v) All district roads maintained through properly funded maintenance systems.
23. The Inception Report for the approach was prepared in 2010. The main activities completed to date are the updating of DTMPs in six districts, and the drafting of an Implementation Plan. It is proposed to focus SWAp on implementing road maintenance until approximately 2013-2014. It should be noted that the SWAp approach has already been adopted for construction and maintenance of trail bridges in Nepal.
7. Others
24. In addition to these rural transport infrastructure projects (albeit they are focused primarily on rural roads, but do include some road bridge construction), there are several projects focused specifically on road bridges for rural roads. Broadly, other donors who have assisted the development of the rural roads sector in Nepal in one form or another, and including some in the process of developing new projects, include JICA, SDC, GTZ, WFP, IFAD, and others (such as India and China).
25. Each of these projects detailed above has somewhat different details to others, such that easy comparisons of performance are not always possible. For example, the RAIDP Project is based mainly in the Terai region in the south of Nepal, where geographical conditions for road construction are generally much different to the more hilly and mountainous districts in the north of the country where DRILP is based. In addition, the Terai districts are generally wealthier, and existing rural infrastructure is already relatively well developed. Hence, project interventions tend toward more upgrading of roads, rather than new road construction which is more common in DRILP project districts.
B. Institutional Arrangements and Processes for Development Coordination
26. DRILP II will liaise with development partners through regular direct contact among the respective Project Coordinators and Project Management Units (PMUs) in order to coordinate and cooperate on implementing activities where the relevant projects have synergies, at the same time avoiding any duplication of activities and project areas. Experiences and lessons learned will also be shared through the local consultative group. ADB, the Department for International Development of the United Kingdom (DFID), and the World Bank have worked together to hold stakeholder consultations to prepare their respective current country strategies. ADB’s current CPS (2010-2012) preparation also involved joint sector and thematic assessments with various development partners in conflict resolution and peace building, gender, development constraints, governance, disaster risk management, and climate change. ADB will continue to coordinate closely with development partners to improve development effectiveness and aid harmonization, enhance operational collaboration, and build Government capacity. ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 6 Final Report – Linked Document 3: Development Coordination
27. The SWAp initiative detailed above has also provided an opportunity for the donor agencies to coordinate their activities. As detailed in Folder 18 of the SWAp documents (September 2009), the following donor agencies have formally agreed to coordinate their funding assistance to the rural roads sector in Nepal, namely ADB, DFID, GTZ, SDC and WB. Folder 17 of the SWAp documentation includes also a Memorandum of Understanding (MOU) in regard to the SWAp initiative for rural roads in Nepal, which includes the above listed parties (as well as JICA and WFP).
28. Development partners currently assisting the roads sector in Nepal are also currently cooperating to produce a comprehensive review of the sector. This initiative is being coordinated by the World Bank, with specific contributions by ADB, DFID, and SDC. A further, less formal, coordination and information sharing mechanism for the rural roads sector in Nepal is the Rural Roads Forum (RRF). This body generally meets on a quarterly basis in Kathmandu, and includes development partners and rural road consultants based in Nepal.
C. Achievements and Issues
29. DRILP I has demonstrated the highly productive cooperation between ADB, SDC, and the GON to undertake the project, which has regularly obtained “satisfactory” project performance rankings from various formal project review missions. For DRILP II, ADB and GON have worked closely together to successfully engage and enlist OFID as a committed co-financier (in addition to SDC). Efforts were made also to engage and enlist other potential donors for DRILP II, such as DFID, JICA, KfW, GTZ, AusAID, ILO, IFAD, and WFP. While not successful to date, there remain some possibilities in the future that other donors could become involved in rural road projects in Nepal. Clearly, there is a major demand for further investment in this sector, and especially in the very poor and remote hill and mountain districts in the country, including those which will be covered by DRILP II.
30. A central issue in the rural roads sector in Nepal is the evident need for increased attention to be given to developing effective maintenance arrangements for the rural road sector. In addition to providing adequate funds for maintenance, there is a need to promote a “maintenance culture” in the districts. Under the SWAp arrangements, a maintenance SWAp pilot is now being trialed in seven districts of Nepal, with funding from DFID. This pilot includes funding support for providing rural roads maintenance engineers in each of the seven pilot districts, undertaking rural roads network inventories and condition surveys, and preparing annual road maintenance plans covering routine maintenance, periodic maintenance/rehabilitation, and emergency maintenance. DRILP II will include a maintenance initiative, and this will benefit from the experience gained in the SWAp maintenance trial in seven pilot districts (none of which are DRILP II districts).
31. Another important issue for the rural roads sector in Nepal concerns the efficient and effective provision of rural transport services (public passenger transport and road freight). Historically, road transport syndicates and cartels have been active in many districts, typically leading to poor, and even dangerous, public passenger transport provision, and increased charge rates for road freight, which are ultimately passed on to the rural population. The existing legislation in Nepal contains a strong basis for eliminating such anti-competitive activities. The Government has provided assurances that DRILP II districts will be monitored in this respect and, as may be found to be necessary, action taken under existing legislation to curtail such anti-competitive practices.
D. Summary and Recommendations
32. The major international development partners involved in the rural roads sector in Nepal include ADB, WB, SDC, DFID, and OFID. They have well-established arrangements ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 7 Final Report – Linked Document 3: Development Coordination and mechanisms for sharing information and coordinating their respective development initiatives in the rural roads sector in Nepal. There does appear to be scope for increasing this list of potential development partners operating in the rural roads sector in Nepal, including from Germany, Japan, Australia, and possibly others, such as other European countries, and South Korea. Decentralized Rural Infrastructure and Livelihoods Project II (DRILP II) (ADB TA No. 7573-NEP)
FINAL REPORT - Linked Document 4 – Economic and Financial Analysis
Prepared for the Asian Development Bank and Government of Nepal
ANZDEC Limited in association with Consolidated Management Services Nepal (P) Ltd. August 2011 CONTENTS
Page
I. ECONOMIC AND FINANCIAL ANALYSIS 1 A. Introduction 1 B. Approach and Methodology 1 C. Project Costs 2 D. Project Benefits 2 E. Financial Analysis 3 F. Economic Analysis 4 G. Project Benefit Distribution 7
ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 1 Final Report – Linked Document 4: Economic and Financial Analysis
I. ECONOMIC AND FINANCIAL ANALYSIS
A. Introduction
1. The Decentralized Rural Infrastructure and Livelihoods Project (the project) is being implemented in 18 hill and mountain districts that are among the poorest in the country. These are the same as the 18 districts that were included in the first project, and this project will build on the benefits previously achieved. The project has four outputs: (i) rural transport infrastructure extended and maintained; (ii) supplementary investments provided for community infrastructure; (iii) income generating capacity of rural households enhanced; and (iv) project management and implementation capacities strengthened at central and district level. The first output is the largest in terms of cost, accounting for about 70% of base costs, and implicitly in terms of benefits. Rural road construction represents the main part of the investment in this outcome and is thus the focus of the economic analysis. Investment in the second and third outputs is considered necessary to maximize the benefits from the first output but have been excluded from the analysis due to the highly conservative estimates of benefits that have been included.
B. Approach and Methodology
2. The economic analysis was conducted in accordance with ADB’s Guidelines for the Economic Analysis of Projects (1997), and was based on identification and comparison of with- and without-project scenarios. Separate economic analysis were conducted for three sample subprojects – Barahbise-Aatichauri Road in Bajura District, Gama-Nele-Budhidanda Road in Solukhumbu District, and Sanghu-Dobhan Road, Taplejung District – together with sensitivity tests. These are considered representative of the types of rural road subprojects proposed for implementation under the project no attempt was made to aggregate the results to the overall project level.
3. The main assumptions include the following:
(i) Financial costs and benefits are based on mid-2011 and are expressed in constant 2011 values. (ii) Project costs are expressed predominantly in local currency and an exchange rate of NRs70 = $1.00 is used where applicable. (iii) The subproject construction period is specific to each subproject and for the sample subprojects is 2 years other than for Bajura, which is 3 years; (iv) The project life is 20 years following completion of the construction, which is considered reasonable if the roads are properly maintained, otherwise it will be substantially less; (v) Road maintenance costs are based on expected cost and are assumed to start at 50% of the routine cost in the first year after construction and to be 100% in subsequent years; (vi) Residual value at the end of the project life is assumed to be zero; (vii) Project benefits are estimated on the basis of producer and consumer surplus, reflecting both the benefits to road users as well as to those engaged in economic activities along the route of the road; (viii) Economic costs and benefits are expressed in constant 2011 terms and are values in local currency using the world price-level numeraire; ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 2 Final Report – Linked Document 4: Economic and Financial Analysis
(ix) Taxes and subsidies are excluded in the economic evaluation of the subprojects and overall project; (x) Physical contingencies are included in the economic analysis while price contingencies are excluded; (xi) The economic costs of tradable agricultural inputs and prices of tradable outputs are based on world market prices1 adjusted to border values and then to equivalent farmgate prices by adjusting for transportation, handling and processing; (xii) Economic costs and benefits for nontradable inputs and outputs were derived by deducting taxes and duties and adjusting the local currency value by a standard conversion factor (SCF) of 0.90, which is consistent with other similar projects in Nepal; (xiii) The opportunity cost of surplus labor is estimated as 0.85 of the [prevailing wage rate and the opportunity cost of scarce labor is estimated as 1.0, both of which are adjusted by the SCF to obtain conversion factors; and (xiv) The opportunity cost of capital used in the analysis is 12% per annum.
C. Project Costs
4. Project costs were based on the estimates provided by the districts in the feasibility study reports and updated to 2011 values by the Consultant after a thorough review and necessary upgrade of technical parameters. The costs were broken down by year to reflect the proposed implementation period. Maintenance costs for the roads were estimated at NRs120,000/km based on the assessment of the Consultant’s engineers.
D. Project Benefits
5. The economic analysis did not set out to capture all of the benefits associated with the project but only those specific to the rural road development output as this is the main project component in terms of the cost. The identified benefits were divided into quantifiable, predominantly the consumer and producer surplus, benefits and non-quantifiable, predominantly the improvements in access to social services and potentially the supply of electricity. Given sufficient resources many of these latter benefits could be quantified but their likely impact of the economic analysis would likely be marginal.
1. Quantifiable Benefits
6. The main quantifiable benefits of the subprojects can be divided into consumer surplus and producer surplus benefits. The consumer surplus benefits reflect those benefits accruing to the consumers of the improved transportation facilities and relate in particular to the reduced cost of existing transportation of persons and goods, both inwards and outwards, and the lower cost of incremental transportation of persons and goods due to the improvements of transportation system. Incremental inputs and outputs of agricultural crops are excluded from this calculation as they are reflected in the quantification of consumer surplus. The quantification of consumer surplus reflects the changes in cropping patterns and crop yields that are expected to result directly from the subproject.
1 The world market prices are based on the World Bank’s pink pages and reflect the average price for the period April 2010 to March 2011.
ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 3 Final Report – Linked Document 4: Economic and Financial Analysis
7. Due to the extremely limited access in the without-project scenario and the lack of reliable data on traffic counts it was decided to collect data through a series of focus group meetings at key points along the proposed rout of the subproject road. A standard questionnaire was developed to collect information on the existing road/trail use; the population that would benefit from the subproject; the cost of travel along the route with and without road improvements including the per capita number of trips per year, the average time per trip, and the value of the time and any other costs involved; the quantity of agricultural and non-agricultural goods transported without-project; and the expected incremental transportation of non-agricultural goods, In addition information was collected on the existing agricultural situation, including crop production, and expectation of the changes that would take place as a direct result of the road improvements. Incremental trips and transportation of goods were valued at 50% of the savings on existing trips.
8. Following data collection the data were carefully reviewed to ensure that they reasonably reflected the likely situation and were adjusted as necessary to reflect a conservative assessment of the situation. Based on experience in the field it was anticipated that, although care had been taken in identifying the participants in the focus group meetings, there would be a systematic overestimate of the likely benefits of the roads. Data were aggregated to the subproject level and form the basis for the economic analysis. The build- up of benefits by year was assumed to be 10% in the first year, 20% in the second, 45% in the third, 75% in the fourth and 100% thereafter.
2. Non-quantifiable Benefits
9. Non-quantifiable benefits include improved access to health and education services, which are likely to have a longer-term impact through reduced morbidity and mortality, and improved employment opportunities particularly for the youths. In addition the subprojects are expected to have benefits in providing local laborers with work opportunities and exposure to new skills, which will improve their future income-earning capacity. Further it has been observed that the development of a road can have the benefit of facilitating the provision of services such as an electricity supply, which will yield further benefits.
E. Financial Analysis
10. Since none of the outputs of the project are revenue generating, there was no need to undertake financial analyses. Moreover, any analysis for the overall project would be meaningless since almost all of the project costs will be borne by the Government, the Village Development Councils and beneficiaries contributing only $1.10 million (1.7%) largely in kind, while the benefits will be received by the rural communities. Analysis from the perspective of either of these is not possible. However, the cost and benefit flows were estimated as the first step in the economic evaluation and the financial net present values were computed at a 12% discount for use in the distribution analysis.
11. Since the project loan and counterpart funds are provided essentially as a grant from the Government to the districts, and the districts have no responsibility to repay, there was no need for an assessment of the capacity of the districts to finance the investments. Furthermore the support for road maintenance does not include any commitment of the districts beyond the project implementation period. At the national level the project loan and counterpart contributions represent a minor part of the government’s financial commitments. Consequently, no assessment of the government’s capacity to finance counterpart contributions or loan repayments was considered necessary.
ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 4 Final Report – Linked Document 4: Economic and Financial Analysis
F. Economic Analysis
12. The economic analysis was undertaken using a standardized spreadsheet approach which allowed the variable specification of the subproject implementation period and the proposed project life. The aggregated data from the field survey was used directly to estimate the project benefits. Tables 1-3 show the estimated economic costs and benefits for each subproject.
ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 5 Final Report – Linked Document 4: Economic and Financial Analysis
Table 1: Economic Costs and Benefits for Barahbise-Aatichauri Road Subproject in Bajura District (NRs000s) Costs Benefits Value of Savings on Value of Value of Savings on generated existing generated induced Net Cash Year Investment O&M Total existing non- Total passenger passenger agricultural Flow cargo agricultural trips trips production cargo 2012 94,546 0 94,546 0 0 0 0 0 0 -94,546 2013 75,869 0 75,869 0 0 0 0 0 0 -75,869 2014 75,869 0 75,869 0 0 0 0 0 0 -75,869 2015 1,133 1,133 1,333 74 666 42 4,974 7,089 5,955 2016 2,267 2,267 2,665 148 1,333 83 9,948 14,177 11,910 2017 2,267 2,267 5,997 332 2,998 188 22,384 31,899 29,632 2018 2,267 2,267 9,995 553 4,997 313 37,307 53,165 50,898 2019 2,267 2,267 13,326 738 6,663 417 49,742 70,887 68,620 2020 2,267 2,267 13,326 738 6,663 417 49,742 70,887 68,620 2021 2,267 2,267 13,326 738 6,663 417 49,742 70,887 68,620 2022 2,267 2,267 13,326 738 6,663 417 49,742 70,887 68,620 2023 2,267 2,267 13,326 738 6,663 417 49,742 70,887 68,620 2024 2,267 2,267 13,326 738 6,663 417 49,742 70,887 68,620 2025 2,267 2,267 13,326 738 6,663 417 49,742 70,887 68,620 2026 2,267 2,267 13,326 738 6,663 417 49,742 70,887 68,620 2027 2,267 2,267 13,326 738 6,663 417 49,742 70,887 68,620 2028 2,267 2,267 13,326 738 6,663 417 49,742 70,887 68,620 2029 2,267 2,267 13,326 738 6,663 417 49,742 70,887 68,620 2030 2,267 2,267 13,326 738 6,663 417 49,742 70,887 68,620 2031 2,267 2,267 13,326 738 6,663 417 49,742 70,887 68,620 2032 2,267 2,267 13,326 738 6,663 417 49,742 70,887 68,620 2033 2,267 2,267 13,326 738 6,663 417 49,742 70,887 68,620 2034 2,267 2,267 13,326 738 6,663 417 49,742 70,887 68,620 NPV = 198,900 11,332 210,232 51,959 2,876 25,979 1,628 193,943 276,384 66,153 EIRR 15.3% Source: PPTA Consultants estimates
Table 2: Economic Costs and Benefits for Gama-Nele-Budhidanda Road Subproject in Solukhumbu District (NRs000s) C o s t s B e n e f i t s Value of Savings on Value of Value of Savings on generated existing generated induced Net Cash Year Investment O&M Total existing non- Total passenger passenger agricultural Flow cargo agricultural trips trips production cargo 2012 166,616 0 166,616 0 0 0 0 0 0 -166,616 2013 166,616 0 166,616 0 0 0 0 0 0 -166,616 2014 1,089 1,089 1,162 2,251 581 145 10,138 14,276 13,187 2015 2,177 2,177 2,323 4,503 1,162 289 20,275 28,552 26,375 2016 2,177 2,177 5,227 10,131 2,614 651 45,619 64,241 62,064 2017 2,177 2,177 8,712 16,884 4,356 1,084 76,032 107,069 104,892 2018 2,177 2,177 11,616 22,513 5,808 1,446 101,376 142,758 140,581 2019 2,177 2,177 11,616 22,513 5,808 1,446 101,376 142,758 140,581 2020 2,177 2,177 11,616 22,513 5,808 1,446 101,376 142,758 140,581 2021 2,177 2,177 11,616 22,513 5,808 1,446 101,376 142,758 140,581 2022 2,177 2,177 11,616 22,513 5,808 1,446 101,376 142,758 140,581 2023 2,177 2,177 11,616 22,513 5,808 1,446 101,376 142,758 140,581 2024 2,177 2,177 11,616 22,513 5,808 1,446 101,376 142,758 140,581 2025 2,177 2,177 11,616 22,513 5,808 1,446 101,376 142,758 140,581 2026 2,177 2,177 11,616 22,513 5,808 1,446 101,376 142,758 140,581 2027 2,177 2,177 11,616 22,513 5,808 1,446 101,376 142,758 140,581 2028 2,177 2,177 11,616 22,513 5,808 1,446 101,376 142,758 140,581 2029 2,177 2,177 11,616 22,513 5,808 1,446 101,376 142,758 140,581 2030 2,177 2,177 11,616 22,513 5,808 1,446 101,376 142,758 140,581 2031 2,177 2,177 11,616 22,513 5,808 1,446 101,376 142,758 140,581 2032 2,177 2,177 11,616 22,513 5,808 1,446 101,376 142,758 140,581 2033 2,177 2,177 11,616 22,513 5,808 1,446 101,376 142,758 140,581 NPV = 281,590 12,189 293,778 50,725 98,309 25,363 6,313 442,693 623,402 329,624 EIRR 22.7% Source: PPTA Consultants estimates
ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 6 Final Report – Linked Document 4: Economic and Financial Analysis
Table 3: Economic Costs and Benefits for Sanghu-Dobhan Road in Taplejung District (NRs000s) C o s t s B e n e f i t s Value of Savings on Value of Value of Savings on generated existing generated induced Net Cash Year Investment O&M Total existing non- Total passenger passenger agricultural Flow cargo agricultural trips trips production cargo 2012 73,786 0 73,786 0 0 0 0 0 0 -73,786 2013 73,786 0 73,786 0 0 0 0 0 0 -73,786 2014 1,354 1,354 1,126 2,519 563 146 1,950 6,305 4,951 2015 2,708 2,708 2,252 5,039 1,126 292 3,901 12,609 9,901 2016 2,708 2,708 5,067 11,337 2,533 657 8,777 28,371 25,663 2017 2,708 2,708 8,444 18,896 4,222 1,095 14,628 47,285 44,577 2018 2,708 2,708 11,259 25,194 5,629 1,460 19,504 63,046 60,338 2019 2,708 2,708 11,259 25,194 5,629 1,460 19,504 63,046 60,338 2020 2,708 2,708 11,259 25,194 5,629 1,460 19,504 63,046 60,338 2021 2,708 2,708 11,259 25,194 5,629 1,460 19,504 63,046 60,338 2022 2,708 2,708 11,259 25,194 5,629 1,460 19,504 63,046 60,338 2023 2,708 2,708 11,259 25,194 5,629 1,460 19,504 63,046 60,338 2024 2,708 2,708 11,259 25,194 5,629 1,460 19,504 63,046 60,338 2025 2,708 2,708 11,259 25,194 5,629 1,460 19,504 63,046 60,338 2026 2,708 2,708 11,259 25,194 5,629 1,460 19,504 63,046 60,338 2027 2,708 2,708 11,259 25,194 5,629 1,460 19,504 63,046 60,338 2028 2,708 2,708 11,259 25,194 5,629 1,460 19,504 63,046 60,338 2029 2,708 2,708 11,259 25,194 5,629 1,460 19,504 63,046 60,338 2030 2,708 2,708 11,259 25,194 5,629 1,460 19,504 63,046 60,338 2031 2,708 2,708 11,259 25,194 5,629 1,460 19,504 63,046 60,338 2032 2,708 2,708 11,259 25,194 5,629 1,460 19,504 63,046 60,338 2033 2,708 2,708 11,259 25,194 5,629 1,460 19,504 63,046 60,338 NPV = 124,702 15,163 139,865 49,166 110,019 24,583 6,376 85,170 275,314 135,449 EIRR 22.0% Source: PPTA Consultants estimates
13. The results of the economic analysis are shown in Table 5, together with the sensitivity tests. The subprojects are all economically viable with economic internal rates of return (EIRRs) ranging between 15.3% for Bajura District and 22.7% for Solukhumbu District.
Table 4: Economic Analysis of Three Sample Road Subprojects
Item Barahbise – Gama-Nele- Sanghu – Dobhan Aatichauri Budhidanda Road, Road, Taplejung Road, Bajura Solukhumbu District District District EIRR (%) 15.36 22.0 22.7 ENPV (NRs millions) 66.2 135.4 329.6 Sensitivity Analysis [EIRR (%)] 10% cost increase 14.1 20.4 21.2 10% benefit decrease 14.0 20.3 21.0 Combined 10% cost increase 12.9 18.8 19.5 and 10% benefit decrease 1 year benefit lag 13.6 19.0 19.7 Switching Values (%) Cost increase 31.5 96.8 112.2 Benefit decrease 23.9 49.2 52.9 Combined cost increase and 13.6 32.6 35.9 benefit decrease EIRR = economic internal rate of return, ENPV = economic net present value Source: PPTA Consultant’s estimates
14. The results of the sensitivity tests indicate that all subprojects are sufficiently robust with respect to cost increases or benefit decreases separately, as well as to combined cost increases and benefit decreases and a lag in benefits. For the most sensitive subproject,
ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 7 Final Report – Linked Document 4: Economic and Financial Analysis
Bajura, the switching values indicate that either a 31.5% cost increase, or a 23.9% benefit decrease, or a combined 13.6% cost increase and benefit decrease would be required to affect subproject economic viability
15. A further test was undertaken to investigate the impact of reduced subproject life. If the actual project life is 15 years, rather than the assumed 20 years, the EIRR is reduced to 14.0% for Bajura, 21.1% for Solukhumbu, and 21.8% for Taplejung, indicating that the subprojects are relatively insensitive to a reduction in expected life.
G. Project Benefit Distribution
16. A benefit distribution analysis was undertaken in accordance with the methodology outlined in the ADB’s Guidelines for the Economic Analysis of Projects (1997) to measure the share of project benefits and costs accrued by the poor. The quantifiable benefits and the employment of beneficiaries in road construction, as part of the project cost, form the basis for the benefit distribution. Non-quantifiable benefits were not taken into account. The project impact ratios for the three sample subprojects are shown in Table 5. The results show that the poor will receive significant benefits from the construction of these rural roads and a similar result is anticipated from the other roads to be constructed under the project.
Table 5: Poverty Impact Ratios for Sample Rural Road Subprojects
Rural Road Subproject Poverty Impact Ratio (%) Barahbise – Aatichauri Road, Bajura District 66.4 Gama-Nele-Budhidanda Road, Solukhumbu District 51.3 Sanghu – Dobhan Road, Taplejung District 70.1 Source: PPTA Consultant’s estimates
Decentralized Rural Infrastructure and Livelihoods Project II (DRILP II) (ADB TA No. 7573-NEP)
FINAL REPORT - Linked Document 5 – Summary Poverty Reduction and Social Strategy
Prepared for the Asian Development Bank and Government of Nepal
ANZDEC Limited in association with Consolidated Management Services Nepal (P) Ltd. August 2011
ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II Final Report – Linked Document 5: Summary Poverty Reduction and Social Strategy
Summary Poverty Reduction and Social Strategy
Country: Nepal Project Title: DECENTRALIZED RURAL INFRASTRUCTURE AND LIVELIHOOD PROJECT
Lending/Financin Project Department/ South Asia Department (SARD), g Modality: Division: Environment, Natural Resources and Agriculture Division (SAER)
I. POVERTY ANALYSIS AND STRATEGY A. Links to the National Poverty Reduction Strategy and Country Partnership Strategy The Government of Nepal (GON)’s Three-Year Interim Plan (FY2008-2010) which builds on the National Poverty Reduction Strategy or the Tenth Plan (2002–2007) has poverty reduction as its overarching goal. The GON aims to build a self- sustaining society free from poverty through economic and social transformation based on social justice. Development of rural infrastructure along with social development is being given high priority by GON as it plays an important role in social and economic development by reducing regional imbalances and socio-economic inequality. In support, the Sector Wide Road Program in the form of a 10-year Priority Investment Plan (2007-2017) is being implemented by GON. Further, the Local Infrastructure Development Policy 2004, and its Strategic Plan (2008), the Nepal Trail Bridge Strategy (2006), the SWAp in the Trail Bridge sub-sector (2009) and the RTI SWAp Guidelines (2009) cover various rural infrastructures with the primary goal of poverty reduction and promote gender mainstreaming with priority to dalits, ethnic nationalities and other economically backward people. Decentralized approach taken by the government recently in rural infrastructure development and increasing access to social infrastructure helped in achieving poverty reduction goals. Long-term vision of the road sector is to develop a safe, reliable and environment friendly national transport network to provide easy access to agriculture, industrial and other production and service centers, and provide support to the development of other social and economic infrastructure. The Asian Development Bank (ADB) country strategy 2010-2012 for Nepal is based on GON’s strategic priorities as set out in the Three Year Interim Plan and the Tenth Plan that focus on broad-based economic growth, inclusive social development, good governance and capacity building, and climate change adaptation and environmental sustainability. Transport, including rural roads is a priority sector of ADB assistance. The project is a follow-on to the successful DRILP. It will further improve rural access to markets, goods, services, facilities, and employment opportunities which will directly reduce poverty. B. Poverty Analysis Targeting Classification: General Intervention 1. Key issues. Poverty incidence in Nepal dropped to 25% (2010) from 31% (2005) and 42% (1996). This decrease is distributed unequally across regions and population sections; it is more visible in urban than in rural areas. The Gini coefficient increased from 0.34 in 1996 to 0.47 in 2010. A comparison of the Human Development Index (HDI) values across development regions in Nepal highlights significant differences in human capabilities. The HDI of the Far Western region is 0.385, far lower than for the Western (0.463), Central (0.476) and Eastern (0.465) regions. Poverty incidence is highest in remote areas such as the Mid-west (45%) and Far-west (41%) that are not accessible by motorized vehicles, thus cut off from road network, food supplies, health, education and other basic services and development opportunities. The more remote the districts are from the center and more remote the communities are from the district headquarters the less access to basic social services, markets, and opportunities to enhance economic activities and livelihoods. Thus people in these areas face multiple exclusions and deprivations. This is further perpetuated by high inequalities due to gender, caste, ethnicity and urban/rural divide. The Nepal Living Standards Surveyi found high poverty incidence among marginalized groups, e.g. dalits (46%), hill indigenous groups (44%) and Muslims (41%), compared to Brahmins and Chhetris (19%) and Newars (14%). Over the last decade, people’s access to socioeconomic infrastructure like motorable roads, transport, schools, and health centers increased markedly. The decline in poverty incidence and improvement in HDI are attributed to this improved access. The Project aims at poverty reduction through improved rural infrastructure – roads and other social infrastructure such as trail bridges, rope ways, rural market centers, etc. This will result in increased access to goods, services, facilities, and employment opportunities, leading to increased household income, increased access to development opportunities, reduced vulnerability, social exclusion and ultimately poverty. Main beneficiaries are the people along the zone of impact (ZOI) of which more than 50% are below the poverty line and most are from excluded and marginalized groups. 2. Design features. The Project enhances rural livelihoods through (i) direct wage payments to the poorest households, amounting to about 60% of subproject construction costs; (ii) promoting self employment and small entrepreneurs through micro-finance; (iii) social mobilization to raise awareness and encourage participation in community decision making, information dissemination, and access to other development opportunities; (iv) skills development to reduce vulnerability and social exclusion; (v) inclusion of rural market places for easy access to markets and trade especially for women and disadvantaged; (vi) employment generation for rural poor through regular maintenance, bio-engineering, plantations, nurseries; (vii) promotion of Labor Based Equipment Supported type construction works by building groups (and by contractors where applicable) to boost local employment; and (viii) a community based auditing procedure for beneficiary monitoring of project implementation and to ensure distribution of benefits equitably to poor and marginalized households. ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 3 Final Report – Linked Document 5: Summary Poverty Reduction and Social Strategy
II. SOCIAL ANALYSIS AND STRATEGY A. Findings of Social Analysis Key issues. Social exclusionii is deeply embedded in Nepal and constitutes deep-rooted values and convictions that affect vulnerable groups—especially women and girls, dalits, and ethnic, linguistic and religious minorities and people with disabilities. The primary beneficiaries of the project are those along the ZOI with the geographical boundary of 1.5 km walking distance from both sides of the new or upgraded road sub project and receiving an estimated 40,000 person-years of jobs and seasonal works created by road improvement and maintenance as well as other project investments such as complementary investment. The project will profit some 900,000-1,500,000 direct project beneficiaries (among these around 65% are poor and most represent disadvantaged castes (dalits, janajatis) and Indigenous People (IPs). Secondary beneficiaries will be those living in communities within 3 hours’ round trip walking distance of a road subproject, and will benefit through increased access, lower travel cost and time. Despite government’s effort to improve rural transport infrastructure the needs of women, excluded groups and the rural population have not been met. A key gap is the lack of policy directive for a disaggregated analysis and identification of transport needs and travel patterns of women and men of different social identities. Access to rural transport infrastructure differs widely by ethnicity, caste, economic status and gender, the lack of recognition of the differences in the needs and interests often results infrastructure that is not effectively used or maintained. Geographic remoteness and the topography is one dimension of exclusion in the rural road sector. Others include lack of attention to the needs of women, poor and excluded in the selection of the location of the infrastructure; high risk of poor families losing their lands and home without adequate financial compensation. Financial and labor contribution rules are not equitable, and thus the worse-off are forced to share increased burden compared to their level of income and/or the level of benefit from the infrastructure; poor subsistence farmers, vulnerable groups are least able to afford transport services and are unable to benefit from employment through rural road construction as they depend on daily wages to meet their survival hence are unable to wait for the payment; lost opportunity for local poor from important wage earning opportunities as more roads are being contracted out to contractors who use laborers from outside; and the lack of time of women, poor and the vulnerable to build up assets and reduce vulnerability, and participate in empowerment activities. Though representation of different social groups remains largely at the community level, their presence within higher-level coordination structures is minimal. B. Consultation and Participation 1. Provide a summary of the consultation and participation (C&P) process during project preparation. Consultations were carried out to build consensus among different stakeholders. The development of the project was led by senior officials from the Department of Local Infrastructure Development and Agricultural Roads (DOLIDAR), Ministry of Local Development (MLD). Experts from other development partners and line agencies were also consulted in the development of the project. The project preparatory technical assistance (PPTA) included workshops at the central level (inception and final) with stakeholders — rural infrastructure professionals, road experts, government officials from DOLIDAR (MLD), and from the districts such as Local Development Officers, District Technical Officers, nongovernment organizations (NGOs), rural infrastructure consulting firms, representatives from other rural road projects of the GON, and gender and inclusion specialists. Intensive consultations also took place during the PPTA in the districts which involved conducting PRA and focus group discussions with beneficiaries, building group members, NGOs, Local Development officers, District Technical officers, and other stakeholders. 2. What level of C&P is envisaged during the project implementation and monitoring? Information sharing Consultation Collaborative decision making Empowerment The Project will promote participatory approaches through decentralized governance processes. Subprojects will be prioritized through participation from various stakeholders including women and the excluded. The Project aims to increase the participation of the socially excluded and poor in decision making through a community social mobilization program. Orientation workshops conducted by the social mobilizers will help build their capacity and confidence to voice their concerns and influence collective decision making. The Project will promote economic growth, gender equality and social inclusion by ensuring proportional representation of marginalized/disadvantaged population in all aspects of project planning and implementation, particularly in employment and income generation activities. Local social mobilizers will organize women, poor and marginalized into groups with 50% women and proportional representation from other excluded groups. 3. Was a C&P plan prepared for project implementation? Yes No Roles and responsibilities of various stakeholders are defined in the PAM. To support and manage rural road construction, up grading, and for other supplementary infrastructure various coordination committees are established that include building group members, community members, related line agency officials, district level officials, and NGOs. Capacity development activities heavily focus on the capacity development of local stakeholders. C. Gender and Development Gender Mainstreaming Category: EGM 1. Key issues. Women from all caste and ethnic groups are constrained by a gendered allocation of responsibilities and practices and women’s household roles, which affect women’s mobility and use of transport. Women have less access and control over resources and fewer opportunities than men to use transport technologies that could alleviate their heavy domestic and productive burdens. Women and girls seldom have time to build capacities and assets to reduce their vulnerability. Labor works involved in rural infrastructure development typically involve a heavy manual component, that
3 ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 4 Final Report – Linked Document 5: Summary Poverty Reduction and Social Strategy
places women and people with disabilities at a disadvantage, as they have different physical capacities and are less able to participate in such work due to access, time and output compatibility. Though women’s participation and representation at community level has increased with a consequent increase in their voice and mobility; their meaningful participation in influencing decisions taken is still minimal. 2. Key actions. Gender action plan A Gender Equality and Social Inclusion (GESI) action plan has been prepared for the project to address gender inequality and social exclusion issues. The Project will build the social and financial capital of women by (i) mandating that 50% of BG membership be women and at least 33% in leadership positions;(ii) forming women-only savings groups from BG members to increase women’s access to loans for income-generating activities; (iii) undertaking separate training for women and disadvantaged castes to give them the confidence and opportunity to participate fully in community decision-making; (iv) ensuring that contractor’s agreements for small works contain a clause to promote women’s employment, and equal pay for men and women for work of equal value; (v) ensuring 40% unskilled jobs for women; (vi) conducting on-site awareness- raising programs on rights and equality issues; (vii) improving rural women’s access to services and facilities through access to micro finance and skills enhancement training with at least 50% women; (viii) providing for a long-term gender and development consultant for the project period; (ix) requiring all training sessions to have a gender module; (x) requiring all NGO project partners to have at least 50% women field staff; and (xi) requiring all data to be disaggregated by gender, ethnicity, and caste. III. SOCIAL SAFEGUARD ISSUES AND OTHER SOCIAL RISKS Significant/Limited/ Plan or Other Measures Issue No Impact Strategy to Address Issue Included in Design Involuntary Significant RF has been prepared which Resettlement plan Resettlement All projects will require land for outlines the scope, entitlements, Resettlement framework rural road construction to budget and implementation various degrees. arrangements for land acquisition and resettlement under the project. Sample RPs exist from the previous DRILP. Indigenous Limited IPPF has been prepared which Indigenous peoples planning Peoples The project Districts contain provides policy and procedures framework high numbers of indigenous to screen project impacts on IPs peoples (according to NEFIN and prepare planning documents definition) but few who trigger in compliance with ADB SPS for the ADB SPS. In addition, subprojects during impacts on IPs are unlikely to implementation, if required. be different to those on non- IPs and be mostly positive. Labor Significant The project will provide 3.7 No action Employment million person-days of work in opportunities subproject ZOIs. Affordability No Impact No action Other Risks Limited Peace Filter Other action and/or Vulnerabilities conflict, political instability IV. MONITORING AND EVALUATION Are social indicators included in the design and monitoring framework to facilitate monitoring of gender and social development activities and/or social impacts during project implementation? Yes
i Government of Nepal, Central Bureau of Statistics. Nepal Living Standards Survey 2003/04 (NLSS). Kathmandu. ii Social exclusion is described as the experience of groups who are systematically and historically disadvantaged because they are discriminated against on the basis of their caste, gender, ethnicity, disability or religion or a combination of all these.
4 Decentralized Rural Infrastructure and Livelihoods Project II (DRILP II) (ADB TA No. 7573-NEP)
FINAL REPORT - Linked Document 6 – Gender Action Plan
Prepared for the Asian Development Bank and Government of Nepal
ANZDEC Limited in association with Consolidated Management Services Nepal (P) Ltd. August 2011
CONTENTS
Page
I. GENDER ACTION PLAN 1 A. Background 1 B. Gender, Poverty and Inclusion in Nepal 1 C. Gender and Social Inclusion in DRILP I Project Districts 1
II. LESSONS LEARNED FROM DRILP, AND GOOD PRACTICES 2 A. Stakeholders‟ Consultations 2 B. Institutional Arrangements 3 C. Performance Indicators on Gender Equality 4 D. Status of Gender Issues at Policy-Level Intervention of DRILP 4 E. DRILP Progress and Results in Addressing Gender Disparities 4 F. Tangible Changes in Gender Relations and Social Dimension 5
III. ASSESSMENT OF INSTITUTIONAL CAPACITY GAP 6 A. Analysis of Staff and DISC Teams 6 B. Decision Making and Representation 6 C. Project Planning, Implementation, and Monitoring 7
IV. RECOMMENDATIONS FOR GESI ACTION PLAN IMPLEMENTATION IN DRILP II 7
V. GENDER AND SOCIAL INCLUSION (GESI) ACTION PLAN FOR DRILP II 8 A. Draft Outline Terms of Reference and Required Outputs 8 ADB PPTA Decentralized Rural Infrastructure and Livelihoods Project II 1 Final Report – Linked Document 6: Gender Action Plan
I. GENDER ACTION PLAN
A. Background
1. The Government of Nepal's Local Infrastructure Development Policy (2004) aims to improve socio-economic conditions of local people and access to: (i) basic services; (ii) economic opportunities, and (iii) resources among women, the disabled, Dalits and other oppressed groups. The Local Infrastructure Development Policy of the Ministry of Local Development (MLD) (2004) states that all programs will integrate "gender mainstreaming", and priority will be given to "Dalits", “ethnic nationalities”, and “other economically backward people".
2. DOLIDAR and MLD have already incorporated many elements of the gender policy into the draft Rural Transport Infrastructure sector-wide approach (SWAp) framework. The framework includes elements of mainstreaming gender and social inclusion used in DRILP, summarizes best practices and lessons learned from inclusive rural transport infrastructure projects, and provides policy recommendations for institutional gender capacity building of government agencies. To support government initiatives for gender mainstreaming at the policy level, DRILP has included as a loan covenant, the development of a gender policy for the local transport system that will provide the framework and guidelines for all DOLIDAR policies, programs and projects to ensure social and gender inclusion in the future.
B. Gender, Poverty and Inclusion in Nepal
3. Recent political developments in Nepal have placed social inclusion at the centre of a new national reform agenda. While a relatively new development concept, popular discourse now acknowledges that barriers related to gender, caste, and ethnicity consistently limit marginalized people's access to economic and social development resources and benefits. In the current Three-Year Interim Plan (2007-2010), the Government of Nepal (GON) has continued to prioritize social inclusion as one of the cornerstones of poverty reduction and to recognize that there is a need for further efforts to ensure the representation and voice of the excluded in decision making processes.
4. National data and recent studies have shown that gender, caste, and ethnicity, are significant factors that influence one's socio-economic status and level of empowerment. Although the incidence of poverty decreased from 42% of the population in 1995/96 to 31% in 2003/04 (National Living Standards Survey, NLSS), differences exist between certain groups based on their caste and ethnicity.
5. While caste/ethnicity and gender are all definitive indicators of empowerment and social inclusion, caste/ethnicity is a more powerful predictor of empowerment and inclusion than gender.
C. Gender and Social Inclusion in DRILP I Project Districts
6. In Nepal, women face substantial gender disparities, but it varies across the country. There is a higher degree of gender disparity in the rural areas compared to the hills and Terai and in the far west region compared to other regions. The socio-economic situation of women, poor, and excluded groups, in DRILP districts are highly variable and comparatively lower than the national average. Deep-rooted socio-cultural traditions, societal norms, and values, create and maintain the status quo that cannot be changed easily. While the national average for life expectancy is 61 years, it is as low as 45.7 years in Bajura. The male literacy rates are quite good for the project districts, but the literacy rates for females are nearly 5-7 times lower than the national average of 34.9%, with the lowest in Humla at 4.8%. The gap between male and female literacy rates demonstrates the gender disparities with a gap of 37% in Bajura and 46% in Bajhang. Data disaggregated by caste/ethnicity are however unavailable.
ADB PPTA Decentralized Rural Infrastructure and Livelihoods Project II 2 Final Report – Linked Document 6: Gender Action Plan
7. The visiting PPTA team found that the Dalits, Disadvantaged Groups (DAGs), and indigenous people (IP), have participated in the social activities and roadwork of the RBGs. It is necessary to measure the impact of DRILP on their livelihoods. So far there has been little effort to examine these critical project impacts. Despite this, some tangible changes from DRILP have been observed.
8. DRILP has enhanced employment and income opportunities for women as women were given construction work with equal pay and increased access to markets.1 Women-only building groups directly benefited women through the formation of saving and credit groups, which increased their access to loans for income-generating activities (IGAs). Empowered as a group, women also took collective action against domestic violence and other social ills. Some changes on gender roles were observed at the household level, with men sharing domestic responsibilities. Women mostly spent their income on health, education, or buying assets, which made them more capable and less vulnerable.2
9. A process of social mobilization, sensitization, and confidence building is required and this takes time. However, DRILP has planted the seeds for change by providing and ensuring equal opportunities and access to project benefits and by acting as role models in the community.
II. LESSONS LEARNED FROM DRILP, AND GOOD PRACTICES
A. Stakeholders’ Consultations
10. During the PPTA for DRILP II, several rounds of consultation were held with different stakeholders. Table 1 lists the meetings and discussions held with various stakeholders, mainly with staff involved in social and gender issues.
Table 1: Meetings and Discussions Held
No. of S.N. Date Venue Participants Topics Discussed participants
1 8 Dec 6 DRILP I, Project Coordinator, DRILP I results 2010 PCU Office, DPTL- CISC, PPTA addressing gender Jawalkhel Consultant issues
2 9 Dec 7 RRRSDP/ Project Coordinator, Gender and 2010 RAIDP Resettlement Social Office, Specialist, Social Development Jawalkhel Development Action Plan and Specialist, PPTA related Issues consultants 3 13 Dec 8 NNGO Office Team Leader, Focus Group 2010 Jawalkhel Social Mobilization Discussion on Officer, PPTA DRILP consultants achievements regarding to gender and social dimension
1 GON/MLD (2004), "Local Infrastructure Development Policy 2061", Ministry of Local Development, Shrimahal, Pulchowk, Lalitpur 2 GON/MLD/DOLIDAR (2009), "Gender Equity and Social Inclusion” Strategic Work plan of Local Infrastructure Development (064/65-066/67)", Rural Transport Infrastructure - Adopting A Sector-Wide Approach ADB PPTA Decentralized Rural Infrastructure and Livelihoods Project II 3 Final Report – Linked Document 6: Gender Action Plan
4 14 Dec 10 DTO Office, DTO Chief, DPO DRILP 2010 Ramechhap Engineers and implementation DISC Staff, PPTA modalities, consultants achievements, social issues
5 25 Dec 15 DDC Meeting LDO, DTO, DPO, DRILP 2010 Hall, Bahjung DISC Staff, PPTA implementation consultants modalities, achievements, social issues 6 30 Dec 3 DRSP Community Discussion on DRILP 2010 Meeting hall, Development Expert GAP/SAP Manbhawan, of DRSP/CISC, Lalitpur PPTA Consultant
7 2-3 Jan 15 DPO Office, LDO, DTO, DRILP 2011 Baitadi DPO,DISC Staff, implementation PPTA consultants modalities, achievements, social issues 8 16 Jan 3 ADB/NRM Social and Gender Meeting on GESI 2011 Office, Development Officer, Action Plan for DRILP Kamaladi Gender Consultant, II PPTA Consultant
9 20 Jan 3 Helvatas Trail Bridge Section Gender Strategy for 2011 Office, Chief, Social Infrastructure Work Bukhedol Development Officer, Heights, PPTA Consultant Pulchowk 10 1 Feb 2 RCIW Project Social and Gender Gender Strategy for 2011 Office, Development Infrastructure Work Pulchowk, Specialist, PPTA Lalitpur Consultant 11 26-27 10 DDC Meeting LDO, DTO, DRILPI March Hall, Jajarkot DPO,DISC Staff, implementation 2011 PPTA consultant modalities, achievements, social issues 12 6 May 3 ADB-NRM, Social and Gender PPTA Interim Repot 2011 Kamaladi, Development and modification of Kathmandu Officer, Gender GESI Plan for DRILP II Consultant, PPTA Consultant
B. Institutional Arrangements
11. DRILP hired a Gender and Social Development Specialist for the Project Coordination Unit for the duration of the project, and 20 Gender and Social Development Focal Points have been recruited by NGOs at the district level. The NGOs involved with social mobilization activities have field staff, 50% of whom are women.
ADB PPTA Decentralized Rural Infrastructure and Livelihoods Project II 4 Final Report – Linked Document 6: Gender Action Plan
C. Performance Indicators on Gender Equality
12. Gender and social inclusion indicators related to Community Development and Capacity Building have been incorporated, and are being monitored systematically based on the project‟s DMF.
D. Status of Gender Issues at Policy-Level Intervention of DRILP
1. Women’s Participation
13. Women‟s participation in users‟ committees is around 30%. Women‟s participation in Building Groups is about 20-40%, which varies across districts and local socio-cultural contexts as well as the availability of other alternative sources of employment. More than 50% of social mobilizers are women.
2. Employment Opportunities
14. Especially in construction and maintenance of rural roads, equal employment opportunities have been provided to women and men. Some cases of positive discrimination to discriminated caste and poor people were also observed. There has been provision of at least 90 days‟ work for such people.
3. Wages
15. All RTI projects were found to be implementing the principles of “Equal Pay for Equal Work‟.
4. Division of Work
16. Work is divided equitably between women and men at the workplace.
5. Social Security Schemes
17. In some DRILP subprojects, some social security schemes were available. This includes life insurance of NRs 100,000, medical facilities for injuries up to NRs 50,000, First Aid provision, emergency fund collection, compensation and resettlement schemes to road- affected families, and environmental safeguard activities.
E. DRILP Progress and Results in Addressing Gender Disparities
18. The project has enhanced employment and income opportunities for women, as women were given construction work with equal pay and increased access to markets. Women-only building groups directly benefited women through the formation of savings and credit groups, which increased their access to loans for income-generating activities. Empowered as a group, women also took collective action against domestic violence and other social ills. Some changes in gender roles were observed at the household level with men sharing domestic responsibilities.
19. The social mobilization process has so far resulted in 45.6% women's participation (targeted at 50%) in all project components, providing them opportunities for training, income generation, and empowerment through membership and leadership in building groups. Other key findings include:3
3 DRILP Trimester progress Report, March 2010 and March 2011 ADB PPTA Decentralized Rural Infrastructure and Livelihoods Project II 5 Final Report – Linked Document 6: Gender Action Plan
Women-only savings groups and women's income-earning opportunities have provided women control over their income, which has increased their confidence to participate in local community organizations and be more active in decision making; 37% of employment opportunities for women have been achieved with women receiving equal payment of the total paid wages of NRs 1,476 million. This has resulted in an increase in per capita income of 56.5% for the population in the zones of influence (ZOIs); Women make up 47.7%, and disadvantaged groups (DAGs) 30.5% of participants in life skills training, and have identified income-generating activities they wish to pursue, such as candle making, vegetable farming, masonry, house wiring, beekeeping, hotel management, and beauticians; Women represent 41.6% (and DAGs at 4.7%) of the 435 savings and credit groups formed, and these are performing well with savings totalling NRs 4.5 million; Women represent 37% and DAGs 45.5% of the 17,333 building group members (in 956 groups), with 35% women and 36% DAGs in key positions. At baseline, women made up 5.4% of key leadership positions, but now one in two leadership positions is held by a woman in every group; 39.1% women (DAGs at 11.2%) have received training on building group leadership and in record and book keeping at the community level; Women on average make up over 45% (DAGs on average about 30%) of awareness raising and training for building group members on group mobilization, preventive health and sanitation, savings and credit, income-generating skills, and conflict management; and 1,750 orientation and training events (with total participants of 55,711) were conducted for the DRCCs, VWRCCs, BGs, DDCs, DTOs, and communities, in planning, implementation, and monitoring, of the main subprojects and supplementary investments in ZOIs. About 35% of the participants were women. F. Tangible Changes in Gender Relations and Social Dimension
20. DRILP brought changes in gender relations and social dimension in the subproject areas, including:
Increased number of women entrepreneurs (such as small business owners, shop owners); Initiated women's involvement in infrastructure work. In many of the rural villages there are social taboos, such as "women cannot work as labourers in road construction". But now more women are working on road projects, and this has led to a marked improvement in women‟s mobility; Poor rural women and socially excluded groups have been getting jobs on the road and SIS projects, which contribute to household incomes; Women contribute to the household economy through their earnings from the roadwork. It has been observed that women are being counted on more and more in their respective households, and getting recognition as well in their communities; In some subproject areas, women engaged in vegetable farming as an income generation activity. As this spurred a change in their lives, the male members (husbands and sons) of their families who were working as security guards and porters in Indian cities, have started to return to their villages. They are now working on the farms that the women had set up. This has helped to maintain family solidarity and for the men in particular, to reduce their risk of acquiring HIV/AIDs and other transmissible diseases while working away from home. ADB PPTA Decentralized Rural Infrastructure and Livelihoods Project II 6 Final Report – Linked Document 6: Gender Action Plan
DRILP has also raised the awareness level of Dalits and those living in poor settlements in the subproject areas. This will encourage meaningful participation in other development projects; Women have become more involved outside of household work, and in groups are actively debating matters of social interest. They now head community groups and lead delegations to district headquarters, boldly demanding development programs from the DDC, and services from other service providers; There has been an increase in the school enrolment ratio, especially from poor and rural households where the mothers have started earning wages from working in road building and from other income generation activities; and There has been an improvement in household incomes of groups of people who have persistently remained below the poverty level before DRILP.
III. ASSESSMENT OF INSTITUTIONAL CAPACITY GAP
21. During the PPTA, an assessment was made of the institutional gaps (and strengths) with respect to the implementation of DRILP‟s Gender Action Plan (GAP) and Social Action Plan (SAP). This covered DOLIDAR-PCU, DDC, DTO, and DPO. The findings are given below.
A. Analysis of Staff and DISC Teams
22. During the project design, the PPTA Consultant has analyzed the staff (Project Implementation Agencies) and DISC teams through observations and interviews with them. The findings of the analyses are given below:
Inadequate staff dealing with social issues (i.e. sociologist) in DOLIDAR. DOLIDAR has one Sociologist to support social development and gender program implementation. Now that DOLIDAR has a number of infrastructure projects, such as DRILP, RRRSDP and CWSSP, there has been a lack of intensive monitoring and reporting on GAP and SAP implementation in the project districts; The DDC has one Social Development Officer, but s/he has not been involved in DRILP implementation. It was found that the DDC cannot provide proper guidance and feedback to the implementation of DRILP‟s GAP and SAP; The DTO and DPO has not deputized non technical staff (e.g., Social Mobilizers); The DISC team has three social staff. The DISC combines a technical team (consultants) and social staff from an NGO in the district. During the assessment of district level working modality and team combination, it was found that the DISC team is not functioning in a proper way. There is a lack of accountability for coverage of social matters; and The number of women staff within DOLIDAR and its district offices both in technical and administrative positions is inadequate.
B. Decision Making and Representation
23. The PPTA Consultant carried out an assessment of the decision-making process and representation in project activities, as well as in the DDC and DPOs. The findings of the assessment are given below:
There is more political representation in the DRCC. There is provision of one woman member in the DRCC who is the Women‟s Development Officer from the Women‟s and Children Office. However, there remains a lack of proportionate representation ADB PPTA Decentralized Rural Infrastructure and Livelihoods Project II 7 Final Report – Linked Document 6: Gender Action Plan
from women, ethnic, and socially excluded groups, in the DRCC; Lack of meaningful participation by women, and ethnic and socially excluded groups, in the VWRCC; and There is no woman member in the Compensation Determination Committee (CDC), and Grievances Redress Committee (GRC) in the project districts.
C. Project Planning, Implementation, and Monitoring
24. The PPTA Consultant also undertook assessment of the involvement of and participation by project beneficiaries in project planning, implementation, and monitoring. The findings of the assessment are given below:
There is a lack of information about project implementation modality, avenues for participation, and potential benefits among the poor and women in the communities; There is less participation from women in project planning, implementation and monitoring at central and district levels; Insufficient budget for the implementation of GAP and SAP in the project districts; Sensitization of decision makers and project implementing agencies to promote participation and inclusion of women and DAGs is very low; Lack of commitment from DDC, DTO and DPO, and low priority given to implementing DRILP‟s GAP and SAP, and the conduct of skills training under SAP; After subproject completion, the employment of women with equal pay for equal work did not continue; No clear social mobilization modality with exit strategy especially for Savings and Credit Groups; Project Affected Persons (APs), mainly Dalits and ethnic women, could not properly benefit from life skills training under the DRILP in some project districts; Less priority to implementation of GAP/SAP in some districts; Integration into the monitoring and evaluation system of DRILP of GAP and SAP activities is poorly defined in the project document.
IV. RECOMMENDATIONS FOR GESI ACTION PLAN IMPLEMENTATION IN DRILP II
25. Proper remedies and areas that need improvements for effective implementation of the Gender and Social Inclusion (GESI) Action Plan for DRILP II are as follows:
The relevant policies (GESI-RTI SWAp, Gender Policy and Operational Guidelines for the Local Transport Sector) which are endorsed by MLD, and other relevant policies of the Government, need to be properly reflected in DRILP II implementation; Implement the GON's commitment for at least 33% women representation at all levels of the project; More emphasis needs to be placed on the inclusion and active participation of women and other marginalized or disadvantaged groups in project planning, implementation, and monitoring; There is a need to develop guidelines and establish a mechanism to promote involvement of women (particularly from female-headed households, FHHs), and socially excluded/marginalized groups in the project, and for them to get direct access to project benefits; There is a need to allocate sufficient budget to implement the GESI Action Plan in ADB PPTA Decentralized Rural Infrastructure and Livelihoods Project II 8 Final Report – Linked Document 6: Gender Action Plan
project districts; and There is a need to raise the number of women staff within DOLIDAR and its district offices, both in technical and non-technical positions.
V. GENDER AND SOCIAL INCLUSION (GESI) ACTION PLAN FOR DRILP II
26. DRILP II is classified as an effective gender mainstreaming (EGM) project. A Gender Equality and Social Inclusion (GESI) Action Plan (Table A6) has been prepared for DRILP II to address gender inequality and social exclusion issues in infrastructure projects. The GESI plan contains specific targets for ensuring project benefits reach the rural poor women and disadvantaged groups in the subproject areas of DRILP II. The GESI plan ensures representation and participation of the poor, socially excluded, and women, in Road Building Groups (RBGs), Village Work Road Construction Committees (VWRCCs), Compensation Determination Committees (CDCs), and Users Groups (UGs), in project orientation, implementation, and monitoring. A data collection system disaggregated by sex, caste, and ethnicity will be developed in the PCU/DOLIDAR to monitor the achievement of the gender and pro-poor targets. The plan also includes provisions for increase in recruitment of female staff and deputation in the PCU and DDCs.
27. The PCU and DDCs are to ensure implementation of the GESI and will be supported by the CISC, the DISC and a National NGO. Adequate budget should be allocated for awareness raising, the training implementation plan (TIP), and GESI. A Gender and Social Development Specialist will be engaged as a member of the CISC to support implementation, monitoring, and reporting on gender and social aspects.
A. Draft Outline Terms of Reference and Required Outputs
28. The Gender and Social Development Specialist will assist in the implementation of social development and gender mainstreaming activities according to the GESI Action Plan. S/he will work under the direction of the Team Leader. The Gender Specialist will have the following qualifications: an advanced post-graduate degree in social science, gender and development or related fields; at least 12 years‟ experience in women‟s advancement, gender equality and participatory development; knowledge on contemporary gender and development programs and issues in Nepal and the region; knowledge of Government‟s policies, administrative systems, and procedures, in the area of rural development and poverty reduction; experience of working with NGOs and international agencies; excellent written and oral communication skills in English and Nepali; strong interpersonal skills and ability to work in a multidisciplinary team; and ability to work independently and undertake extensive travel in the rural areas.
29. The Gender and Social Development Specialist will:
(i) Provide guidance in developing policy, programs, and procedures of the project to implement the GESI Action Plan and enhance contribution to social development; (ii) Assist the Resettlement Specialist to plan, design training and orientation, prepare a curriculum, deliver, monitor, and evaluate training/orientation on gender and social analysis and support incorporating gender aspects in, participatory governance/management, leadership development and other social development related training for the project staff; (iii) Provide social and gender inputs for all training programs, both at institution and community levels; (iv) Develop effective mechanisms to ensure participation of, and regular consultation with, the DDC, by Women‟s Organizations, NGOs and concerned ADB PPTA Decentralized Rural Infrastructure and Livelihoods Project II 9 Final Report – Linked Document 6: Gender Action Plan
stakeholders, in the selection process of SIS and other infrastructure activities; (v) Ensure that gender, poverty and social development issues are incorporated and implemented in all project components, including infrastructure and other services, capacity building, and development programs; (vi) In collaboration with the Resettlement Specialist, design activities for VWRCCs, RBGs, infrastructure maintenance groups, and women ward members, to ensure efficient targeting of the rural poor including women; and (vii) Ensure implementation and monitoring of the Gender and Social Inclusion Action Plan.
30. The required inputs and qualification and experience requirements of the Gender and Social Development Specialist are given in below.
Designation Indicative Inputs Indicative Requirements Gender and Social 60 mm (National) Post graduate in Sociology/ Gender Development Development Specialist with at least 12 years experience in the community development, gender mainstreaming, and equality.
ADB PPTA Decentralized Rural Infrastructure and Livelihoods Project II 10 Final Report – Linked Document 6: Gender Action Plan
Table 2: Gender and Social Inclusion (GESI) Action Plan for DRILP II S.N. Activities Performance Indicators and Targets Responsibility Output 1. Rural Transport Infrastructure Network Extended and Maintained: Increases mobility, better access to resources and services, market and linkages that increases income and employment opportunities, better social services. Conduct a baseline socio-economic The updated baseline data disaggregated NNGO/ CISC survey through collection of sex, caste, by sex, caste, ethnicity and minority groups and DISC/PCU ethnicity and minority groups collected within 6 months of the start of the disaggregated data of the project project. districts. Conduct poverty mapping of subproject areas (ZOI) to identify poor, Poverty mapping carried out in sampled excluded and most vulnerable (20%) subproject areas and criteria households. Based on the poverty includes indicators on income, mapping carry out Gender and social heath/nutrition, education, occupation, inclusion assessment of the subproject social capital, existing infrastructure area to identify specific constraints, facilities, and female household heads barriers and opportunities to their (FHHs)4. Gender and social inclusion participation in project activities. assessment carried out and GESI Action plan/social action plan prepared for all sub projects. Ensure participation of women and 40% women of the total participants and DPO/DISC excluded, minority groups in project proportionate representation from all caste, /CISC and related consultations, orientation, ethnic and minority groups as per their NNGO planning, management, public and social population proportion in the districts. auditing, and issues related to resettlement, displacement and maintenance of rural roads. Ensure representation of women and BG: 40% women and proportionate DPO/DISC excluded groups in Building Groups representation from excluded groups. /CISC and (BG), District Road Coordination BG leadership: 33% women from all caste, NNGO Committee (DRCC), road maintenance ethnic and minority groups. committee (RMC), Compensation DRCC, CDC, RMC and GRC: 33% women Determination Committee (CDC) and and proportionate representation from Grievances Redress Committee (GRC) excluded groups. in project districts. Provide capacity development program 20 RBG members receive training on DPO/DISC for women and excluded on road routine maintenance, nursery preparation /CISC and maintenance. and bio-engineering etc. NNGO Ensure participation of women and At least 40% of the participants in all DPO/DISC excluded in orientation programs on training are women and proportionate /CISC and project approaches, health and representation from excluded groups. NNGO sanitation, local governance, safety measures including implementation of GESI action plan. Apply the policy of employing local Women and men BG members are DPO/DISC people in BGs with preference to provided equal opportunity as supervisors /CISC and affected families, dalits, IPs, and and laborers and receive equal payment NNGO excluded and the policy of equal pay for for work of equal value. work of equal value in employment for Women provide 40 % of the employment rural roads. generated. Output 2. Supplementary Investments provided for community Infrastructure: Reduces women’s drudgery, provides access to new opportunities and markets, and increases mobility, increases more time for productive activities. Identification and selection of Out of the total consulted for project site DISC/DPO supplementary infrastructure site and selection and identification 50% are women project selection in a participatory and proportionate number of excluded manner based on community demand. groups. DPO/DISC Of the total SCIs constructed 15% are targeted to meet the specific needs of women and 10% the needs of other
4 Female headed households (FHH) refers to households without adult males, widows, separated, divorces, unmarried and „de facto‟ women heads whose husbands have migrated for work for long period of time.
ADB PPTA Decentralized Rural Infrastructure and Livelihoods Project II 11 Final Report – Linked Document 6: Gender Action Plan
S.N. Activities Performance Indicators and Targets Responsibility excluded groups. Ensure participation and representation Women make up 40% of the BGs and 33% DPO/DISC of women and excluded in the in VWRCC and committees with at least infrastructure user committee, Village one key position in operation, Workers Coordination Committee management, maintenance and monitoring (VWRCC), operation and maintenance committees and proportionate committee. representation from other excluded groups. Provide SCI operation and maintenance Women are at least 50% of those trained DPO/DISC training Output 3: Income Generating Capacity of Rural Households Enhanced: Enhances socio-economic conditions of the rural poor, women and excluded through improved accessibility to economic opportunities such as access to finance, skills training and better opportunity through linkage to other local services. Identify and conduct special livelihood At least 70% of the BG members are NNGO/CISC/ enhancement training programs in the targeted for the skills training of which at Training areas of agriculture, carpentry, furniture least 50% are women and proportionate providers. making, nursery, driving, hotel representation from excluded groups as management, computer training, house per the Training Implementation Plan (TIP). DPO/DISC wiring, health trainer, auto mobile repairing and maintenance, NTFP Priority given to women, poorest processing. households and individuals from DAG group. Group mobilization of SHGs through Relevant social mobilization strategy, NNGO/ social mobilization including saving and guideline and relevant capacity building credit, record keeping, institutional training manuals, tools developed. CISC/DPO/DIS capacity building by federating into C SFCLs/SCCs and ensuring support for 70% of the SHG members are women and micro-finance proportionate number of other excluded groups.
Establishment of Revolving Fund Management Committee with representation of at least one woman and one representing excluded groups. Provide enabling work environment for At least one child care center is operating DPO/ women and marginalized by providing in each project district during the working child care facilities, separate toilets for season. women and men, health and safety, and insurance at the work place. Output 4: Support for Project Management and Capacity building: For increased gender and social inclusion responsive planning, budgeting and program implementation. Adopt GESI plan and formulate output Annual output based central and district PCU, f CISC, based annual plan for implementation. plans are developed, implemented and /NNGO,DISC, Instruct and orient DPO to prepare reported. DPO district level output based annual plan and implement and report accordingly. Provide GESI orientation to DOLIDAR/PCU/DPO/DDC/DTO/DRCC are PCU, DOLIDAR/PCU/DDC/DTO/DPO/DRCC capacitated and equipped to effectively CISC,NNGO including mainstreaming tools and on the mainstream GESI and implementing district DPO, DISC GESI Action Plan. specific GESI plans. Ensure that all project related activities At least 33% women participation in the PCU, (training, exposure visit, periodic events. DOLIDAR/NNG meetings, review meetings) provided to O PCU/DTO/DPO integrate GESI related All stakeholders are aware of GESI issues issues and targets women staff and staff and taking the effort in mainstreaming from excluded groups. GESI concerns while implementing activities. Establish a monitoring system with sex, Output and achievement on GESI CISC, NNGO, caste, ethnicity and minority group disaggregated by sex, caste, ethnicity, and PCU, DPO, disaggregated data including poverty minority groups are available and progress DISC. data. Establish quarterly review, update of GESI plan included in progress monitoring and reporting system against reports. indicators/activities as per GESI plan. Monitoring team consists of at least one gender and social development expert. ADB PPTA Decentralized Rural Infrastructure and Livelihoods Project II 12 Final Report – Linked Document 6: Gender Action Plan
S.N. Activities Performance Indicators and Targets Responsibility Integrate GESI measures and monitoring Project design and monitoring framework, CISC, NNGO, indicators in project operating guidelines, guidelines and strategies incorporate GESI PCU, DPO, sub sector strategies, institutional indicators as per the GESI Action Plan. DISC mechanisms, program budget. Provisions as per the MLD‟s GESI policy and GESI policy of the rural transport sector are considered. Designate Social development officers At least 33% women officers (technical/non DOLIDAR, PCU, each in the PCU and DDC/DTO. Hire technical) in PCU/DTO/DPO. At least 40% DPO, DDC consultants at the Central of eligible women and excluded Implementation Support unit and District caste/ethnic groups in other project related implementation support unit. positions including junior technicians and road supervisors at center and districts.
Hire SM locally. At least 50% of SM are women and DPO, PCU, proportionate number from excluded and DDC minority groups
Note: GESIAP = Gender and Social Inclusion Action Plan; RBG = Road Building Group, UC = Users Committee, SCCs = Saving and Credit Cooperatives, DAG = Disadvantage Group, RMUCs = Road Maintenance User Committees, IGA = Income Generating Activities, CBOs = Community Based Organizations, SCIs = Supplementary Community Infrastructures, DRCC = District Road Coordination Committee, VWRCC = Village Works Road Construction Committee, CDC = Compensation Determination Committee, GRC = Grievances Redress Committee
Decentralized Rural Infrastructure and Livelihoods Project II (DRILP II) (ADB TA No. 7573-NEP)
FINAL REPORT - Linked Document 7 – Environmental Assessment Review Framework
Prepared for the Asian Development Bank and Government of Nepal
ANZDEC Limited in association with Consolidated Management Services Nepal (P) Ltd. August 2011
CONTENTS
Page ENVIRONMENTAL ASSESSMENT REVIEW FRAMEWORK
I. INTRODUCTION 1 A. The Project 1 B. Rationale for Environmental Assessment and Review Framework 1
II. ASSESSMENT OF LEGAL FRAMEWORK AND INSTITUTIONAL CAPACITY 1 A. Assessment of Legal Frameworks 1 B. Assessment of Institutional Capacity 3
III. ANTICIPATED ENVIRONMENTAL IMPACTS 5 A. Major Project Activities 5 B. Anticipated Environmental Impacts 5 C. Mitigation Measure 5 D. Benefit Augmentation Measure 5 E. Adverse Impacts Mitigation Measure 6 F. Impacts from Climate Change 19
IV. ENVIRONMENTAL ASSESSMENT AND ENVIRONMENTAL MANAGEMENT PLAN 20 A. Environmental Assessment 20
V. CONSULTATION, INFORMATION DISCLOSURE, AND GRIEVANCE REDRESS MECHANISM 23
VI. INSTITUTIONAL ARRANGEMENT AND RESPONSIBILITIES 24 A. Environmental Roles and Responsibilities 25
VII. MONITORING AND REPORTING 26 A. Environmental Monitoring 26 B. Environmental Reporting 27
VIII. ATTACHMENTS 28 A. Attachment 1: Rapid Environmental Assessment Checklist 28 B. Attachment 2: Sample EMP Budget Template 30 C. Attachment 3: Sample Impact Assessment and Mitigation Matrices 31 D. Attachment 4: Sample Grievance Intake Form 34 E. Attachment 5: Sample Monitoring Plan Templates 36 F. Attachment 6: Sample Site Environmental Compliance Inspection and Monitoring Form 37 G. Attachment 7: Outline of a Project Environmental Progress and Monitoring Report 40
ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 1 Final Report – Linked Document 7: Environmental Assessment Review Framework
I. INTRODUCTION
A. The Project
1. The Decentralized Rural Infrastructure and Livelihood Project – Additional Financing, will reduce rural poverty in 18 districts in very poor and remote hill and mountain regions of Nepal by improving access to goods, services, facilities and employment opportunities. The Project will enhance accessibility of rural communities in these very remote areas to social services, such as education and health, and to economic opportunities. The Project will maximize employment opportunities in the 18 districts by giving preference to project- affected persons, women, and disadvantaged groups through the use of labor based, environment friendly and participatory (LEP) method of road construction and maintenance.
2. Impact and Outcome. The expected impact of the project will be reduced rural poverty in 18 very poor and remote hill and mountain districts of Nepal affected by the civil conflict. The expected outcome of the project will be improved rural communities' access to goods, services, facilities, and employment opportunities.
3. Outputs. The Project outcome will be achieved through the following outputs: (i) community development and rural livelihood restoration; (ii) capacity building and decentralized local governance; (iii) rural transport infrastructure; and (iv) project management services.
B. Rationale for Environmental Assessment and Review Framework
4. The Project being a sector lending project, the potential subproject roads of total 260 km length 260 to be implemented in 18 Project districts will be identified through a selection process during implementation stage of the Project. An Environmental Assessment and Review Framework (EARF) is required for sector type project as per the appendix 4C of the Safeguard Policy Statement 2009 of ADB. In this regard, this EARF is prepared.
II. ASSESSMENT OF LEGAL FRAMEWORK AND INSTITUTIONAL CAPACITY
A. Assessment of Legal Frameworks
1. Review of Environmental Policies and Legislation of Nepal
5. The national policies, acts and guidelines for safeguards relevant to the Project are as listed in following table 2.1.
Table 2.1: Review of National Policies, Environmental Acts, Regulations and Guidelines of GON SN Environmental Acts, Description of Requirements Regulations and Guidelines 1 Three Years Interim Plan, Requires all projects will be formulated and constructed based on 2007/08-2009/10, GoN methods that optimally utilize the local skill and resources and generate employment opportunities. 2 Environmental Protection Any development project, before implementation, shall pass through Act, 1997, GoN environmental assessment, which may be either IEE or an EIA depending upon the location, type and size of the projects. 3 Environmental Protection The EPR and its schedules clearly provide various step-wise Rule 1997 (amendment, requirements to be followed while conducting the IEE study. It also 2007), GoN obliges the Proponent to timely consult and inform the public on the contents of the proposal and IEE study. 4 Forest Act, 1993 Requires decision makers to take account of all forest values, (amendment, 2007), GoN including environmental services and biodiversity, not just the production of timber and other commodities. It includes several ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 2 Final Report – Linked Document 7: Environmental Assessment Review Framework
provisions to ensure development, conservation, management, and sustainable use of forest resources based on approved work plan. 5 Forest Rules, 1995, GoN Elaborates legal measures for the conservation of forests and wildlife. Expenses incurred for cutting trees and transportation shall be borne by proponent. 6 Batabaraniya Nirdesika The directive is focused in the practical implementation of small rural (Nepal; MLD), 2057, GoN infrastructure through the minimization of environmental impacts. This directive includes the simple methods of environmental management in the different phases of the project cycle. 7 National Park and Addresses for conservation of ecologically valuable areas and Wildlife Conservation indigenous wildlife. The Act prohibits trespassing in park areas, Act, 1973, GoN prohibits wildlife hunting, construction works in park area, damage to plant and animal, construction of huts and house in park area without permission of authorized person. It lists 26 species of mammals, 9 species of birds, and 3 species of reptile as protected wildlife. 8 Local Self Governance Empowers the local bodies to formulate and implement periodical Act (1999) and and annual plans within their own jurisdiction. They also authorizes Regulation (1999), GoN the local bodies for conservation of soil, forest and other natural resources, and implement environmental conservation activities. 9 Land Acquisition Act, Specifies procedural matters on land acquisition and compensation 1977 and Land Acquisition Rules, 1969, GoN 10 National Environmental Provides guidance to project proponent on integrating environmental Impact Assessment mitigation measures, particularly on the management of quarries, Guidelines, 1993, GoN borrow pits, stockpiling of materials and spoil disposal, operation of the work camps, earthworks and slope stabilization, location of stone crushing plants etc. 11 APPROACH for the Emphasizes labor based technology and environmental friendly, Development of local resource oriented construction methods to be incorporated Agricultural and Rural actively in rural infrastructure process. Roads, 1999, GoN 12 Explosive Material Act, It requires prior approval of Chief District Officer to purchase and 1962 use explosives. 13 Reference Manual for Suggests stepwise process of addressing environmental and social Environmental and Social issues alongside the technical, financial and others Aspects of Integrated Road Development, 2003, GoN 14 Green Roads in Nepal, Focuses on participatory, labor based and environment friendly Best Practices Report: technology with proper alignment selection, mass balancing, proper An Innovative Approach water management, bioengineering and phased construction for Rural Infrastructure Development in the Himalayas and Other Mountainous Regions, 1999, GoN
6. The Environment Protection Act, 1997 (EPA) and Environment Protection Rules, 1997 (EPR) are the main legislation governing the environmental safeguards in Nepal. Section 3 of the EPA mandates any project proponent to carry out an environmental assessment of a project (proposal) in the form of an Initial Environmental Examination (IEE) or an Environmental Impact Assessment (EIA), as prescribed. It prohibits anyone to implement any project proposal without getting an EIA or an IEE report approved by the concerned government authority. Rule 3 of the EPR, 1997 requires the project proponent to carry out an IEE for the kinds of the projects that are listed in Schedule 1 or to carry out an EIA for the kinds of the projects that are listed in Schedule 2 of the Rules. Road infrastructure proposals requiring an EIA or an IEE as per EPR 1997 are listed in Table 2.2. ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 3 Final Report – Linked Document 7: Environmental Assessment Review Framework
Table 2.2: Road Infrastructure Proposals IEE threshold IEE Threshold District Roads Urban roads Rural roads Small feeder roads 1 to 5 ha forest vegetation loss 5 to 50 km long ropeway construction Major bridges (> 20m span) Improvement of national highways and feeder roads. *Sources: Environmental Protection Act (EPA, 1997 amended 1999); Environmental Protection Rules (EPR, 1997 amended 2007)
7. In general, the subprojects involve rural roads or small feeder roads which are under the IEE threshold.
2. Safeguard Policy Statement 2009 of ADB
8. According to the Safeguard Policy Statement 2009 of ADB, a proposed project is classified as category B if its potential adverse environmental impacts are less adverse than those of category A projects. These impacts are site-specific, few if any of them are irreversible, and in most cases mitigation measures can be designed more readily than for category A projects. An initial environmental examination is required for category B projects. The project falls under Environment Category B, and requires Initial Environmental Examination (IEE) of the subproject roads.
9. ADB‟s Safeguard Policy Statement 2009 restricts implementation of project activities in areas of critical habitats1, unless there are no measurable adverse impacts on the critical habitat that could impair its ability to function.
B. Assessment of Institutional Capacity
10. The two key parties involved in the environmental assessment of subprojects are the respective District Development Committees (DDCs) of the selected Project districts (the Proponents) and the Ministry of Local Development (MOLD) through Department of Local Infrastructure and Agricultural Roads (DOLIDAR). MOLD through DOLIDAR is the Executing Agency (EA) of the Project. Responsibilities for preparation of IEEs and obtaining approvals rests with the proponent (the DDCs), and review of the report and giving approval for IEE report rests with the MOLD.
11. District Development Committees are comparatively weak in conducting environmental assessment, and implementing, monitoring and reporting of compliance to environmental management plans (EMP). An Environmental and Social Unit has been established recently in each of the DDCs of the country under the ADB and multi-donor agencies financed Local Governance and Capacity Development Program (LGCDP). Staffing and training of the Unit is also conducted under the program. With external expert support and coordination, the DDCs are expected to be able to conduct the IEE of subprojects, and monitoring and reporting EMP implementation.
12. The DDCs have carried out environmental assessment, monitoring and reporting in the project roads under the Decentralized Rural Infrastructure and Livelihood Project through the District Project Offices (DPOs). Environmental safeguard trainings were provided to both the central and district level stakeholders including MOLD/DOLIDAR, DDCs, VDCs, RBGs,
1 Refer glossary in the safeguard policy statement 2009 of ADB ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 4 Final Report – Linked Document 7: Environmental Assessment Review Framework
NGOs, and CBOs. In this regard, the environmental management capacity of the central and district level institutions have been strengthened. Nevertheless, capacity development programs at national and local levels are required in a continual basis to ensure environmental safeguards in project operations meeting the requirements of ADB.
Table 2.3: Concerned Institutions and Their Roles Institution Role Responsibility in the Project Remark Ministry of Mandated to formulate and Facilitate when needed on No direct Environment implement environmental environmental safeguards responsibility policies, plans and programs at in the project national level; and to approve scoping document, terms of reference and EIA reports. Ministry of Local It is concerned line ministry, Review ToR for IEE and IEE Report, EA Development executive agency and and give approval. (MLD) concerned agency as per Coordinate with project on safeguard EPA/EPR. Environment issues Management Section is Conduct environmental monitoring responsible to look into from central level. safeguard matters for the ministry. Department of Department under MLD The project will be executed under EA Local responsible to execute overall coordination and supervision Infrastructure infrastructure projects. Provides of the Department for the Ministry. It Development and back-up support to DDCs in will also support DDCs through Agricultural Roads technical matters through DTO. DTOs to implement the project. (DoLIDAR) Project Project specific unit for Technical Unit to support and Coordination Unit coordination and management coordinate all activities for (PCU) of the Project activities. implementation of project. Review, comment, and forward IEE ToR and Report for review to ADB and for approval to MLD District DDC/DTO is project Prepare IEE ToR and submit for District Development implementing agency. approval to PCU/MLD Technical Committee / Conduct IEE Study, Public Officer is the District Technical Consultation, and prepare IEE Project Office Report Manager Receive comments from PCU/ADB/MLD and modify accordingly. Get final approval from MLD. Conduct environmental safeguard monitoring Reporting District Project Project implementation office Responsible for overall activities IA Office working directly under related to implementation of the DDC/DTO for implementing works at field level. subprojects. Central Support consultants at central Technical and management support Consultant Implementation level to PCU Support Consultant (CISC) District Support consultants at district Technical and management support Consultant Implementation level to DPO Support Team (DIST)
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III. ANTICIPATED ENVIRONMENTAL IMPACTS
A. Major Project Activities
13. The major project activities includes followings:
Table 3.1: Major project outputs and indicators Outputs Performance targets and indicators with baselines (by 2016) Community 90 school buildings/health posts, 36 foot/mule/link trails, 54 water supply & irrigation Development schemes, 10 micro hydropower, 8 rural market places, 10 ropeways, and other community and Rural infrastructure constructed involving BGs in 50% of the contracts Livelihood Equal wage for equal value of work Restoration 6,000 beneficiaries trained in livelihood related skills, of which at least 40% are women and 60% are poor and excluded Access to microfinance by BGs and savings and credit schemes piloted in 9 districts of the total receiving the schemes 40% are women and 60% poor and excluded Capacity Subprojects are prioritized and proposed by DDCs Building and as per implementation schedule Decentralized Capacities of DOLIDAR, DDCs and DTOs Local improved to implement transport Governance infrastructure subprojects, and to deliver development services 15Central and 72 District officers participate in and learn from regional study tours of which at least 20% are women. Rural Transport 200 km of rural roads built and 60km of rural roads rehabilitated involving BGs in 50% of the Infrastructure new road construction contracts 6,500 m trail bridges 1,200 km of rural roads fully maintained through length-persons engaged from the local communities, of which 40% will be provided by women Toll collection system piloted in 9 districts to augment the district road maintenance funds Project DOLIDAR retention of project coordinator and agreed-uponnumber of staff, number of DTO Management staff, and requirednumber of consultant and NGO staff as per schedule Services Vehicles and equipment procuredaccording to time and cost schedules
B. Anticipated Environmental Impacts
14. The subprojects will generally focus on existing foot trails or small existing roads, and the interventions will unlikely produce significant environmental impacts. The constructed roads may rather provide environmental benefits, such as stabilization of potential landslide areas and improved drainages, control of soil erosion, and tree plantation, employment opportunities, enhanced community services, etc. Road construction is based on the LEP approach, and use of bio-engineering techniques for slope protection. Following table 3.2 and 3.3 presents the likely beneficial as well as adverse impacts anticipated from project implementation.
C. Mitigation Measure
15. The following subsections present some of the benefit augmentation measures and adverse impacts mitigation measures. They are also listed in following tables 3.2 and 3.3.
D. Benefit Augmentation Measure
Construction Phase
16. As part of the benefit augmentation measures, local people involved in road construction will be given practical training to do the job, labor-based method shall be adopted, and project will provide skill training for income generation activities to interested BG members for improving their livelihood and it will provide support to local entrepreneurs, ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 6 Final Report – Linked Document 7: Environmental Assessment Review Framework promote cooperatives, and develop linkage with bank and other financial institutions for the benefit of local community in the project area.
Operation Phase
17. In the project area, the project will provide support for developing sewerage and other basic facilities in the market centres, agriculture and livestock support services will be improved and facilitated to provide technical services to farmers, access to market shall be strengthened, provide support to promote linkage of social infrastructure services, and facilitate awareness raising programme with the concerned stakeholders to support the promotion of tourism activity.
E. Adverse Impacts Mitigation Measure
18. The ADB Safeguard Policy Statement (2009) requires any ADB funded activity to consider the following in developing mitigation measures:
i. Avoid, and where avoidance is not possible, minimize, mitigate, and/or compensate adverse impacts and enhance positive impacts by means of environmental planning and management. ii. Apply pollution prevention and control technologies and practices consistent with international good practices. Details on environmental health and safety measures are to be worked out. iii. Provide workers with safe and healthy working conditions and prevent accidents, injuries, and disease. Establish preventive and emergency preparedness and response measures to avoid, and where avoidance is not possible, to minimize, adverse impacts and risks to the health and safety of local communities. 1. Physical Environment
Land Use and Land Cover
19. Mitigation measures include plantation of trees and shrubs along the road side, management of spoil areas and quarry sites, and adoption of protective measures to control soil erosion in ROW and the further loss of land in the road corridor during construction and operation phase. Lost land and production can be compensated by promoting cash crops and, fruit trees, mushroom and bee farming that does not require land.
Land Degradation, Erosion and Landslides
Construction Phase:
20. The DDC/DTO will ensure that the proposed road construction adopts LEP and green road approach. Adequate slope stabilization measures will be provisioned in design. The following mitigation measures will be adopted during the construction and rehabilitation of the proposed road (project cost includes the mitigation cost):
i. Ensure minimum cut slope, selecting cut and fill slope at correct angle depending upon the soil type; ii. Re-vegetate cut and fill slope or exposed areas as soon as possible by using native plant species, adoption of bio-engineering techniques; and iii. Ensuring minimum damage of vegetation during construction and no construction work during rainy season particularly in erosion and landslide prone areas.
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21. Spoil disposal has been observed as one of the major environmental issues in rural road projects. Spoils shall be safely disposed and managed with minimum environmental damage using LEP approach which includes balanced cut and fill volume, re-use of excavated materials and minimum quantity of earth works. Mitigation cost is included in the project cost. The following mitigation measures will be adopted:
i. Wherever possible, surplus spoil will be used to fill eroded gullies, quarries and depressed areas. Use the excavated materials for reclaiming the degraded land in the close vicinity of the road in consultation with local communities. Eighteen spoil disposal sites have been suggested. DPO and DISC should ensure that spoils are disposed off in proper sites; ii. Utilize as much of the excavated material from rock cuttings along the alignment to minimize the need of quarrying; iii. The tipping sites should be covered by vegetation with proper drainage and adequate protection against erosion, provision of toe-walls and retaining walls; use of bio-engineering techniques; iv. Spoils should not be disposed on fragile slopes, farmland, marshy land, forest areas, natural drainage path, canals and other infrastructure; and v. Provide adequate training to the Building Groups, particularly the group leader (Naike).
22. The potential adverse impacts of quarrying are accelerated erosion, landslides, disturbance in natural drainage patterns, water logging and water pollution. Appropriate planning for quarrying and borrowing of materials will be made during construction. Unstable sites, erosion prone area, dense forest area, settlements, fertile farm land will be avoided for quarrying operation, and after the extraction is completed, the quarry site will be rehabilitated to suit the local landscape.
23. The concentrated water discharged from side and cross drain causes erosion and landslide which eventually affect the stability of the road itself. It also damages farmland, forest and other private properties. The following mitigation measures are recommended (project cost shall include the mitigation cost):
i. Adequate numbers of drainage structures will be provided in order to have minimum interference on natural drainage pattern of the area; no diversion of water away from natural water course unless it is absolutely necessary; ii. Drain water discharge into farmland or risky locations will be avoided; iii. Restoration/reinstating of all disturbed infrastructure; iv. Coordination with concerned local authorities like District Drinking Water Supply Office, Irrigation Office, and water users groups for the maintenance of disturbed infrastructure.
Operation Phase:
24. During operation phase the major environmental issues will be slope failure and landslides and blockage of road drains. Quarrying along the road could cause great damage to road. The following mitigation measures will be implemented by the project through DDC and budget will be allocated for this purpose:
i. Regular road maintenance including slope protection and drainage works; ii. Immediately clear minor landslides and mass wasting and restore slope with appropriate bioengineering works; iii. Promote soil conservation in ROW and in vulnerable areas beyond the road alignment; ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 8 Final Report – Linked Document 7: Environmental Assessment Review Framework
iv. Prohibit slate mining and other types of quarrying along the road slopes.
Air, Noise and Water Pollution
25. Dust pollution, increased level of noise and water pollution will be inevitable during construction phase. The mitigation measures include: use of face mask by the workers to minimize air pollution due to dust generation and use of ear muffles to lessen noise pollution during rock breaking and quarrying. Disposal of excavated materials in the water bodies will be avoided. Plant trees along the both sides of road, particularly at school, health post and settlement areas, which will act as dust and sound barrier.
2. Biological Environment
Forest Vegetation
Construction Phase:
26. As per the forest rules and Working Procedures for the Use of Forest Land to Other Provisions (2007), 25 trees need to be raised for the loss of each tree in the infrastructure development project area. In general, the survival rate of planted seedlings in natural environment is about 60% This would require establishment of forest nursery, provision of seeds and planting materials, training to nurseryman and nursery management. Again plantation of large number of seedlings could be a big challenge for the local community/CFUG as well as for the District Forest Office in mountainous region. The following activities are proposed:
i. Obtain forest clearance approval from the DFO; follow the government procedures such as counting the number of trees to be felled, measuring wood quantity etc; ii. When alignment passes through forest area, site clearance for construction will be limited to the minimum width. No tree or vegetation shall be cut unless absolutely necessary; iii. Management of felled trees: project will make provision the cost for each tree felled in accordance with Ministry of Forest and Soil Conservation Norms as applicable and given to CFUG /DFO and private owners; iv. Forest plantation will begin in the second year of project implementation. DPO and DISC will make arrangements with DFO/CFUG for plantation work. The environmental specialist at DDC will provide the technical guidance and the bio- engineering technician at the field will be particularly responsible for forest plantation. Farmers losing trees will be encouraged to plant seedlings at the ratio of 1:1, as a rule by the Project; v. Project shall make provision for protection and management of planted seedlings for five years and the budget should be allocated for this purpose and prepare an exit plan; vi. Awareness programmes will be organized to educate local people on the importance of rare and endangered plant species and conservation practices; and vii. The proponent shall provide counseling services for the promotion of agro- forestry, NTFPs and medicinal and aromatic plants in community forests as well as in private lands.
Operation Phase:
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27. The major environmental issues will be management of planted seedlings which requires to be managed properly, high seedling mortality in planted areas, and pressure on forests for timber and firewood. The following mitigation measures shall be adopted:
i. CFUGs will be supported to conserve and manage their CFs according to operational plans; ii. Promotion of the installation of improved stoves to minimize the consumption of fire wood; iii. Encourage and support local community for controlling illegal harvesting of forest resources; iv. Seedling plantation in high mortality forest plantation area; and v. Awareness programme to educate local people on the conservation of forest
Wildlife and Birds
28. The road construction activities will disturb the wildlife and bird movement in the project area. The following mitigation measures will be implemented:
i. The construction activities near forest area shall be appropriately managed so that there will be least disturbance to the wildlife and birds. Workers shall be made aware not to harass the wildlife or get involved in illegal hunting and poaching or illegal wildlife trading; ii. Coordination with DFO and CFUGs to control the activities like illegal hunting and poaching by enforcing acts and regulations strictly. iii. The project shall launch wildlife conservation awareness programme in the wildlife rich subproject areas; iv. Restriction to road construction work during night time
29. The major issues during the operation phase will be disturbance to wildlife movement in forest area due to vehicular flow blowing horns as well as occasional hunting and poaching. Provision of signboards at wildlife crossing points and restricting blowing horns in forests rich areas. Budget will be allotted for signboards.
Socio-economic and Cultural Environment
Agriculture
Construction Phase:
30. The subprojects will cause permanent loss of cultivated land and the loss of food grains and other farm products for long-term period. Households in the subproject areas, which are generally food deficit areas may face acute shortage of food grains. The following compensatory measures shall be implemented:
Compensation for the loss of farmland, standing fruit trees and other structures will be provided to the affected people. A separate Resettlement Plan shall be prepared following the Resettlement Framework of the Project to address land acquisition and compensation issues; Compensation for the loss of cultivated land is not enough. Provision should be made for implementing „food grain production programme‟ to compensate the long-term annual loss of food grains from loss of cultivated land; Project shall develop and implement commercial vegetable and fruit farming, small-scale poultry rearing, bee-keeping, mushroom farming in agriculture ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 10 Final Report – Linked Document 7: Environmental Assessment Review Framework
pockets. Even landless farmers can reap benefit out of these and better link with market; Project will promote organic farming in the project area; Strengthen agriculture and livestock service centres in the project area.
Operation Phase:
31. The intensive food production programme and the commercialised agriculture programme shall be continued with the help of district agriculture office and DDC. Farmers link to micro finance will assist in continuation of the activities.
Community Infrastructure
32. The road construction will affect community infrastructure such as drinking water system and irrigation canal. Mitigation measures include relocation and reconstruction of affected community infrastructure. The beneficiary groups and the local community will be consulted and efforts will be made to participate them in reconstruction works. There is no mitigation during operation phase.
Occupational Health and Safety
Construction Phase:
33. During road construction, workers will be exposed to various risks and hazards. Potential impacts to health are respiratory infection and eye diseases due to exposure to dust, also risk of accident during work. The following mitigation measures shall be implemented:
i. The workers will be provided with helmets, masks, muffles depending on the nature of the construction work; ii. Drinking water facility and temporary pit latrine will be established at construction sites to control open defecation and pollution of water bodies by the workers; iii. Workers will be provided with first aid and health facilities. The First Aid training will be provided to field staffs like sub-engineer, social mobilizers and supervisors; and iv. Group accidental insurance will be done for the workers.
Operation Phase:
34. Provision of safety signs along the road; this shall be done at the end of the road construction.
Ribbon Settlement Development
Construction Phase:
35. There could be haphazard development of settlements and market centres along the road and currently there is no any mechanism at VDC or DDC level to control haphazard settlement. Project will assist the concerned VDC and DDC to prepare salient features of settlement development and expansion of existing market centres along the road, which will include basic facilities such as drainage and sewerage, footpaths, bus parking area, regulatory mechanism and an organisation to manage the market centre etc, and it will promote awareness programme through local organisation to plan proper settlements and market centres. Trees shall be planted at both sides of the road in the ROW. ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 11 Final Report – Linked Document 7: Environmental Assessment Review Framework
Operation Phase:
36. Expansion of settlement area and development of market centers along the road are very much expected. This may trigger the practice of encroaching ROW, reduce road capacity and increase road accidents. Project may support development of sewerage, drainage and other facilities in market centers, promote market linkages and networking for better markets and land development activities, regulate settlement growth, check encroachment within ROW, and assist tree plantation along the road in market centre. ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 12 Final Report – Linked Document 7: Environmental Assessment Review Framework
Table 3.2: Likely Beneficial Impacts and Proposed Enhancement Measures Responsible Agencies Activity Effect Related Beneficial Impacts Benefit Augmentation Measures Executing Supporting Agency Agency Construction Stage Construction by Increase in Increase in income level Maximize manual work through local, poor, vuerable and women DPO DISC / DRCC / using labour-based employment under LEP approach. Training in income generation and skill VWRCC / approach opportunity enhancement CISC Skill enhancement Increase in skill Increase in employment Priority to Affected Peoples (APs) and poor and vulnerable groups DPO DISC / CISC training opportunities Construction of Enterprise Increase in income Priority to products of local market BGs / Proponent / road development and Contracto DISC opening of local r shops and restaurants by local people Vulnerable Increase in know- Increase in income Organize skill training programs and income generation training; DPO/DIS Associated Community Dev.; how; local networking generating activities, Priority to APs especially to vulnerable group T NGOs, empowerment and and increase in employment opportunities DDC/VDC ownership awareness level. Supplementary Promote efficient New employment Select supplementary investments in need based and prioritized DPO/DIS DDC/VDC investments productive use of opportunities; reduced basis. T local resources hardships; generate outreach and extension services Operation Stage Operation of Road Improvement in Saving in travel time and Proper maintenance (regular, emergency) so that operation is DTO DDC / accessibility travel cost ensured DoLIDAR Operation of Road Markets available for Shifts towards improved and Encourage local farmers towards improved agricultural practices; Local District local products. commercial agriculture; Increase the potential products of the area (vegetable, milk and farmers/N Agriculture growth in local markets coffee). GO/CBO Office (DADO) Operation of Road Availability of Increase in productivity and Improve agricultural support services through supplementary Local District agricultural inputs sale of farm product investments and capacity development program farmers/N Agriculture and extension GO/CBO Office (DADO) facilities Operation of Road Enhancement of Ease of access to social Keep road maintained to ensure access facility that will attract , NGO, MLD community services, and raise in quality development of other social services facilities DDC, development services service VDC ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 13 Final Report – Linked Document 7: Environmental Assessment Review Framework
Responsible Agencies Activity Effect Related Beneficial Impacts Benefit Augmentation Measures Executing Supporting Agency Agency Operation of Road Improved access Increase in land value Land development & management, observe that RoW is not VDC / DTO / facility encroached. CBOs CDO/DDC Locals will be made aware on this fact so that they can reap its benefit. Operation of Road Poor, indigenous and Women and Indigenous Assist to organize women's groups, provide training in enterprise VDC / Women women will have People Empowerment development, organize cooperatives, provide micro-financing to DDC / Development easy and frequent undertake production of commercial products, provide market NGO Office/MLD access to social services. services (education, health, community development, bank,training, CBOs and networking)
Table 3.3: Likely Adverse Impacts and Proposed Mitigation Measures Responsibility for Mitigation Measure Activity Potential Negative Effects Related Adverse Impacts Mitigation Measures Responsible Relevant Executing Supporting Agency Agency Pre-Construction and Construction Stage Physical Environment Loss of agricultural land; Design Construction of forest area, barren land. team of Minimize use of fertile land, forest, settlement areas. Provide PCU / DDC / Road, site Change in land use Cause production loss, loss DPO compensation for lost private properties. CISC clearance of property, loss of forest assisted by area. DISC Exposed cuts are eroded Slope instability, landslide Cut slope angle as per soil type; Cover exposed earth / cut areas DPO by rain and erosion. against rain; Bio engineering to naturally stabilize slopes; Restrict PCU / DDC / Cutting of slope, assisted by Imposed weight of spoil Damage to agriculture land / spoil disposal on slopes, drainages, agri fields and forest areas. CISC earth excavation DISC / BGs on slopes properties Provide compensation for lost private properties. and spoil DPO disposal Sedimentation of water Effect to aquatic life and D/S Proper management of spoils away from farms, hill slopes and PCU / DDC / assisted by bodies water user drainages. Cover exposed excavated areas with vegetation. CISC DISC / BGs Spoil disposal Gully, erosion, land slide, Disruption of road, damage Proper site selection and management of spoil at designated DPO PCU / DDC / ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 14 Final Report – Linked Document 7: Environmental Assessment Review Framework
Responsibility for Mitigation Measure Activity Potential Negative Effects Related Adverse Impacts Mitigation Measures Responsible Relevant Executing Supporting Agency Agency degradation of farm and to farmland and forest, areas only and approved by Engineer; balanced cut and fill; assisted by CISC forest land, blockage of water pollution, water- reclaim land; landscape and vegetation at disposal area. DISC / BGs drainage logging or contractor DPO Operation of Change in river regime, Proper selection and management of quarry sites as approved by assisted by quarry sites and Disruption on slopes or instability, land slide; PCU / CISC / Engineer; rehabilitation and vegetation of quarry / borrow area DISC / BGs stockpiles of river bank damage to forest, farmland DDC / VDC after completion of work. or material and property; water pollution contractor DPO Dust from exposed Construction Use of face mask while working on dust prone areas; covering of assisted by surface, from Air pollution, public health PCU / DDC / works, operation dust sources; water sprinkling where necessary, cover material DISC / BGs construction equipments risks CISC of construction during transportation. or and vehicles vehicles, contractor material hauling DPO and unloading Increase in level of noise assisted by Noise pollution, disturbance Restrict horn near school, health posts, settlement, forest areas. PCU / DDC / (in contractor around school, health DISC / BGs and annoyance. Locate crusher plant away from these areas. CISC based work) posts, forest areas or contractor Slope cutting, DPO spoil and waste Proper spoil management; prevention of leakage and spills of Increase in sediment assisted by disposal during Water pollution and impact construction chemicals; restriction in open defecation; cut slopes PCU / DDC / level, spills and leakage DISC / BGs road on users in right angle depending on soil property; cover exposed areas by CISC of oils and chemicals or contract construction; vegetation. or open defecation Encroachment of productive Locate camp site away from productive land and forest area DPO Construction by land and forest area; solid (potential sites at 3+870, 14+500, 23+395); use local labor and assisted by PCU / DDC / Location of camp site contractor waste and wastewater may local houses as camp; pay compensation to land owner of camp DISC / CISC cause pollution. area; proper storage of chemical and materials contract or Encroachment of productive DPO land and forest area; Locate site away from farm and forest area; away from settlement Construction by assisted by PCU / DDC / Location of crusher plant disturbance to settlement and sensitive habitat; do not operate at night; water sprinkling contractor DISC / CISC and sensitive area; water facility to reduce dust. contract or pollution; dust nuisance. ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 15 Final Report – Linked Document 7: Environmental Assessment Review Framework
Responsibility for Mitigation Measure Activity Potential Negative Effects Related Adverse Impacts Mitigation Measures Responsible Relevant Executing Supporting Agency Agency Construction of May cause slope failure, Avoid blasting; If cannot be avoided, take prior approval of ADB for Blasting of rocks DPO/DDC CDO/MLD road safety risks controlled blasting Biological Environment Loss of green cover; loss of DPO environmental benefits from Road widening Cutting of tree only in formation width, compensatory plantation of assisted by PCU / DDC / Cutting of trees from vegetation, disturbance in and geometric local species of tree at 1:25 ratio for every tree cleared from forest DISC / BGs CISC/DFO / private land and forest ecological function (dust improvements area and 1:1 for tree cleared from private land. or contract VDC and noise absorbance, or aesthetic value) DPO Killing and harassing of assisted by DTO / DFO/ Construction Working in or near forest wildlife; Loss of biodiversity Work only in day time; do not disturb wildlife; aware workers DISC / BGs NGOs/ activity areas and valuable species of or contract CFUGs/VDC wildlife or DPO Cooking and Cutting of tree for Pressure on forest resulting Supply oil for cooking and heating for labours; use local labours assisted by PCU / DDC / heating by using collection of firewood in forest degradation; avoiding requirement of camp; promote improved stoves and bio- DISC/ BGs CISC firewood from nearby forest habitat degradation gas in project area; awareness generation. or contract or DPO Cutting of trees and Compensatory plantation at 1:25 ratio per cleared trees; protect assisted by Construction disturbance to Impact on protected and PCU / DDC / wildlife; do not use horn in forest area; do not work at night in DISC / BGs work endangered and endangered wildlife CISC/ DFO forest areas. or contract protected wildlife or Socio-Economic Environment Construction Minimize productive land acquisition through alignment selection; DPO work; Reduced production, implement commercial vegetable and fruit farming; promote bee assisted by PCU / CISC Loss of Agriculture Land Acquisition of hardship, food shortage keeping, mushroom farming for landless people. DISCT land for Increase productivity and production by agriculture extension or Local PCU / CISC / ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 16 Final Report – Linked Document 7: Environmental Assessment Review Framework
Responsibility for Mitigation Measure Activity Potential Negative Effects Related Adverse Impacts Mitigation Measures Responsible Relevant Executing Supporting Agency Agency maintaining crop diversification and commercialization people in DADO road width assistance with DPO Acquisition of land and DPO in PCU / CISC / Displacement of people, Compensation and resettlement to the owner as described in property for Loss of private property assistance CFC2 hardship resettlement plan maintaining by DISC road width Loss/damage of DPO in PCU / CISC / Construction of community infrastructure Restoration or relocation of affected infrastructure without causing assistance Users Loss of services Road falling under road hardship to communities using them. by DISC / Committee / construction width Contractors VDC DPO in Occupational Risks of accidents, health Occupational health and safety regulations, first aid facility at sites Injury, fatal accidents, assistance PCU / CISC / health and risks, emergency with health treatment arrangements, contingency planning; Proper decline in capacity to work by DISC / Health Post safety aspects situations drinking water and toilet facility for construction crew Contractors Earning by labourers, Loss of earned money, Potential cultural DPO in PCU / CISC / Increased deterioration of law and conflicts, consumption of Vigilance, motivation, awareness training to construction workers assistance Users interactions order situation; Spreading alcohol, prostitution, and local people by DISC / Committee / among of HIV/AIDS & STD; gambling, Contractors VDC construction Trafficking of girls and boys workers DPO in PCU / CISC / Disturbances in working Construction of Cover the road alignment by planting tree on both sides; manage assistance Users areas and scar on Decrease in aesthetic value Road working areas. by DISC / Committee / topography Contractors VDC Operation Stage Physical Environment
Activities that will be carried out during pre-construction period 2 The Land Acquisition Guidelines, 1991 specify the establishment of an Acquisition and Rehabilitation Committee (also known as Compensation Fixation Committee, “CFC”) for fixing the rate of compensation of private properties to be acquired, consisting of the concerned Chief District Officer (Chair), Land Revenue Officer, representative of the DDC and the Project Manager and others as deemed necessary. ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 17 Final Report – Linked Document 7: Environmental Assessment Review Framework
Responsibility for Mitigation Measure Activity Potential Negative Effects Related Adverse Impacts Mitigation Measures Responsible Relevant Executing Supporting Agency Agency DDC/ DTO DoLIDAR Inadequate DFO, District Disturbance to traffic flow, slope protection, Watershed Soil erosion and slides; pollution of water bodies, quarrying Regular maintenance of slope protection structures and Soil Wash-away of sediments erosion and impacts on Local activities on Selection of healthy upland farming techniques Conservation by rain water agriculture land, loss of People slopes, grazing Office vegetation on slopes (DWSSC), DADO Inadequate maintenance of Disruption of traffic flow, drainage Water congestion, effect to nearby agriculture Regular maintenance of drainage DDC DoLIDAR structures may erosion land and crops lead to drainage problems Air and noise pollution Traffic Operation of Disturbance to students, VDC/DDC/ effects, particularly near Speed limit for vehicles, no horn signs, use vegetation barrier. Police/DoLID vehicles patients, wildlife DTO sensitive spots AR Arrangement of road delineators, safety signs, road safety Operation of Increased chances of VDC / Loss of life and property training; plant trees on roadsides in ROW and around school and DoLIDAR vehicles accidents DDC/DTO health posts. Biological Environment DFO/ Induced/ accelerated Enforcement of law, vigilance and monitoring, participation of CFUGs/VD CDO / CBOs, Road operation logging, illegal timber Loss of forest resources community Cs NGOs extraction
DFO/ Illegal trade of species of Enforcement of law, vigilance and monitoring, participation of CFUGs/VD CDO / CBOs, Road operation Loss of biodiversity plant and wild animals community Cs NGOs
Disturbance to wildlife Collision of wildlife with CDO / Operation of Warning traffic signal, Awareness training to driver to limit speed due to vehicular vehicles, disturbance in their DDC/VDC DFO/Traffic vehicles and horn use operation normal activities Police Washing of Water pollution Impacts on aquatic species Discourage vehicle washing activities along drinking water Community; VDC / DDC ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 18 Final Report – Linked Document 7: Environmental Assessment Review Framework
Responsibility for Mitigation Measure Activity Potential Negative Effects Related Adverse Impacts Mitigation Measures Responsible Relevant Executing Supporting Agency Agency vehicles in and drinking water sources sources and natural streams Drivers natural streams Socio-Economic Environment Encroachment of RoW, Operation of Development of Ribbon Awareness program, enforcement of law, planning of land CBOs, increased accidents, delay CDO road Settlement development; plant trees in RoW NGOs in traffic movement Socio-economic and Displacement of local poor Easy Access by Awareness, enforcement of law and order, provision of training for CBOs / other issues related to people; Depletion of local VDC / DDC road operation skill NGOs easy access resources, cultural conflicts ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 19 Final Report – Linked Document 7: Environmental Assessment Review Framework
3. Controlled Blasting
37. As a general rule, blasting will not be allowed. As much as possible, rocky portions shall be avoided by choosing alternative alignment. If rocky areas cannot be avoided, then technologies other than blasting can be used (i.e. drilling, heating and cooling, and rock cutting by jack hammer). In exceptional cases, when there is no other option, controlled blasting may be permitted. However it must meet the following conditions: There must be independent technical justification proving that all the possible routes have been explored; it must be a limited section only; it must be proved that there are no other technical options; and DoLIDAR must approve it. The controlled blasting may be performed by a separate, skilled team only (not by the users), and generally it should be done after completion of all other road sections. Prior approval of ADB shall be taken before commencing the controlled blasting.
4. Bio-engineering
38. The project will integrate the use of vegetation in combination with simple civil engineering structures such as gabion walls and simple drains to give the best overall slope protection and stabilisation.
F. Impacts from Climate Change
39. Climate change is an inevitable fact that road authorities and road owners need to consider for future planning, construction and maintenance of road infrastructure. Most of the subprojects are located in hilly and mountainous areas of Nepal which are more vulnerable to environmental and climate change attributes, such as deforestation, cultivation on slopes and slope failure, change in precipitation patterns, higher rainfall intensity causing accelerated soil erosion and landslides, pronounced warming in high altitude regions resulting in snow and glacial melt, among others.
40. The predicted impacts of climate change in Nepal are increasing temperature by an average of 1.20C by 2030 and 1.70C by 2050; higher temperature increments during winter in comparison to the monsoon season, and higher temperatures in western and central regions than in eastern region3; significant warming, particularly at higher elevations, significant loss of ice and snow cover from glaciers – estimated at 70% loss of ice cover across Nepal4; and more rain during the monsoon and post monsoon and less during the already dry winter, increase in the intensity of rainfall, and more frequent and more severe extreme events such as floods5. Impacts of climate change on road infrastructure will be as follows:
i. Intensified soil erosion and landslides. Slope stability on roadsides could be a major maintenance issue. Road drainage could be very frequently blocked and damaged; ii. Excessive melting of ice and snow could overflow mountain streams, damaging causeways and bridges, and water logging in sections of roads; iii. Climate change could cause an increase in hydro-meteorological extreme events such as storms, landslides, debris flows, and avalanches, in the mountains that could greatly affect roads in sub-alpine to alpine areas (higher elevations); and
3 MOE (2010), page 9 4 IDC (2010), DFID‟s Program in Nepal, International Development Committee, House of Commons, London, UK, March 2010, para 17 5 MOE (2010), page 10-11 ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 20 Final Report – Linked Document 7: Environmental Assessment Review Framework
iv. Higher costs of road maintenance. The costs could be considerably higher if the roads are earthen (and not all weather surfaces). 41. In general, environmental issues and climate change are given inadequate priority in Nepal‟s national development agenda. Climate change is an inevitable fact that road authorities and road owners need to consider for future planning, construction, and maintenance. The subprojects shall consider the following climate change adaptation measures while developing roads:
i. Assess the likely local effects of climate change; ii. Examine the possible short and long term impacts of climate change on road construction and road transport; iii. Give total or partial consideration for climate change in the design phase; iv. Avoid unstable slopes, high risk soil erosion prone areas and landslide areas, and water logged areas near streams; v. Strictly implement slope stability measures and robust road drainage systems during early phase of road construction; vi. Seal gravel roads in high risk areas; vii. Make provisions and arrangements for adequate and timely maintenance of roads to increase their serviceability; viii. Strengthen knowledge about climate change data and information; ix. Reduce deforestation or increase forest plantation to cut carbon per capita emissions. Encourage local communities to plant and manage good community forests and tree crops in farmlands and help communities to access carbon funds for the trees they grow; x. Make provision for improved Chulho (firewood stoves) which consume less firewood but generate high cooking energy to save trees; and xi. Initiate use of smokeless solid fuels that emit less carbon dioxide, give consistently higher heat, and last longer than firewood.
IV. ENVIRONMENTAL ASSESSMENT AND ENVIRONMENTAL MANAGEMENT PLAN
A. Environmental Assessment
42. The environmental assessment of subprojects must fulfill the requirements of ADB, as described in ADB‟s Safeguard Policy Statement 2009, and the Environmental Protection Act 1997, and Environmental Protection Rule 1997 (amended 2007) of GON. The EPR, 1997 describes steps for preparation of IEE. Scoping delimitation and TORs for IEE study is approved by GON, and based on the approved TORs, IEE reports are prepared and submitted to GON for approval. Safeguards Policy Statement 2009 of ADB also describes environmental categorization of projects, and format of environmental assessment report and environment assessment and review framework (EARF).
43. The environmental assessment procedure for the Project shall follow the following steps:
a. Environmental Screening and Categorization ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 21 Final Report – Linked Document 7: Environmental Assessment Review Framework
44. Project screening and categorization are undertaken to reflect significance of project‟s potential environmental impacts; and identify the type of level of environmental assessment and institutional resources required for safeguard measures. The environmental screening of the subprojects shall be done by using the Rapid Environmental Assessment (REA) checklist (REA checklist is included as Annex 2). The REA checklist shall be filled during the identification and walkover survey of the proposed subproject alignment. The findings of the environmental screening shall conclude if an IEE is required, and adequate screening of road shall also be done as per schedule 1 and 2 of the EPR 1997 of GON.
b. Initial Environmental Examination (IEE) study Process
45. The IEE process shall follow following:
a. Terms of Reference for IEE Study: A TOR for IEE study is a planning tool to determine the requirements for an IEE study. TOR lists the likely environmental impacts, methodology of assessment, extent of the impacts, examine mitigation options, and the IEE study schedule. It also identifies if additional experts in certain areas are particularly required for the study (geologist, forest expert, bio-engineer etc.). Approval from MLD shall be obtained on TOR for IEE prior to commencing IEE Study. b. Assessment Methods: An outline of the activities for conducting IEE study are presented below:
(i) Desk Study: Environmental assessment needs to be based on current information, including an accurate project description and appropriate environmental and social baseline data. Review of information such as maps, reports, and EARF for the Project. Checklist for collecting site information shall be also finalized. (ii) Consultations: Villagers and local stakeholders (community forest users groups, U/S or D/S road users) can be consulted by means of Focus Group Discussions (FGD). If required, discussion with concerned government offices shall also be undertaken. A 15 days public notice shall be published in a daily national newspaper. A copy of the notice shall be pasted in the school, VDCs, DDCs, Municipality, hospitals and post office of the project affected VDCs. A Deed of Enquiry shall be collected and annexed to the IEE report. (iii) Field Assessment and Baseline Data Collection: Potential and significant environmental status of project area will be collected covering physical, biological, and socio-economic environment. Community consultation, household survey, walkthrough survey, sampling and testing will be the methods for collecting baseline data. The collected data shall be analyzed to identify any potential impacts. (iv) Consideration of Alternatives: The environmental implications of different alternatives will be briefly assessed, particularly focusing on no action alternative, project alternative, construction method, construction materials and their source, and schedule of construction. (v) Identification of Environmental Impacts and Mitigation Measures: The impacts will be identified in terms of their nature, significance, extent, reversibility, and duration. Table 3.2 and 3.3 under section 3 provides a non-exhaustive list of environmental impacts that are likely to be encountered in subprojects and their mitigation measures. (vi) Design of Environmental Management Plan: EMP shall be prepared where monitoring requirements for potential environmental impacts are identified, mitigation measures prepared, method of mitigation measure developed, indicators prepared, frequency of undertaking monitoring activity decided, and cost and ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 22 Final Report – Linked Document 7: Environmental Assessment Review Framework
responsible agency for undertaking the monitoring and implementing identified. Emergency response procedures, related institutional arrangements, capacity development and training measures will be included in the EMP. (vii) Information Disclosure: Deliver information about the project of general public and affected communities and other stakeholders beginning early in project cycle and continue throughout the project. A Grievance Redress Mechanism shall also be included in the IEE report. (viii) IEE Report: IEE report shall be prepared in brief following the template presented in table 4.1.
Table 4.1. Outline of an IEE report I. Executive Summary II. Policy, Legal, and Administrative Framework III. Description of the Project (with salient feature) IV. Description of the Environment Physical environment Biological environment Socio-economic and cultural environment V. Anticipated Environmental Impacts and Mitigation Measures Beneficial impacts Adverse impacts VI. Analysis of Alternatives VII. Information Disclosure, Consultation, and Participation VIII. Grievance Redress Mechanism IX. Environmental Management Plan X. Conclusion and Recommendations
46. Draft of the IEE report shall be distributed to the local agencies and kept open for public review. Recommendation Letter from all the related VDCs or Municipalities shall be collected and annexed to the report. The draft IEE report will be submitted to ADB for review and approval after which approval from MLD shall be obtained for environment clearance of the Project.
4.1 Forest Clearance Requirements in Nepal
47. In Nepal, specific “Forest Clearance” is not required for implementing an infrastructure project. The Forestry Sector Policy, 1997 recognizes heavy pressure on forests, forest degradation, and loss of forest vegetation, and one of the objectives of this sector policy is to conserve biodiversity, ecosystems, and genetic resources, in forests. The GON has developed and approved the “Working Procedures for Providing Forest Land to Other Provisions” in February 2007 as per the provision in the Forest Act, 1993 in its Clause 68 (1) for providing forest land to national priority projects, if their implementation does not significantly impact on the environment. The conditions that are to be met by the project proponent in such context are as follows:
(i) The project shall do plantations in an area of land equal to the area occupied by the project‟s physical structures in the National Forest, in the locations as ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 23 Final Report – Linked Document 7: Environmental Assessment Review Framework
preferred by the District Forest Office (DFO)or in CF; or provide plantation and protection cost for five years to CFUG /DFO (ii) The project has to plant and grow 25 tree saplings in the area referred by the DFO for the loss of each tree above 10 cm diameter felled in the project area. The project shall bear all costs of plantations, maintenance, and protection of the plantation areas for five years, and such areas shall be handed over to the DFO.
48. The proponent has to strictly follow the “Forest Cutting Clearance Procedures”. If the prescribed procedures are not strictly followed, tree felling could be very much delayed. Even if a single tree is to be felled, the DFO forwards the proposal to the Ministry of Forestry and Soil Conservation for approval.
1. Project Selection Criteria
49. Following environmental criteria shall be applied for selection of road subprojects:
(i) Any subproject requiring an EIA study will not qualify for selection; (ii) Avoid defined environmentally critical areas. The environmentally critical area shall include national parks, wildlife reserves, conservation areas, wetland areas, world heritage sites, and other areas such as known religious and archeological sites, forest areas requiring conservation, drinking water supply catchments for hill towns with population greater than 10,000, and hospital compounds. (iii) If the forest vegetation loss is more than 5 ha, EIA is required.
V. CONSULTATION, INFORMATION DISCLOSURE, AND GRIEVANCE REDRESS MECHANISM
50. A Grievance Redress Committee (GRC) will be set-up in each of the subprojects to address all concerns and grievances of the local communities and affected parties. The GRC will comprise of representatives from local authorities, affected parties, and well-reputed persons, as mutually agreed with the local authorities and APs. This committee will address the Project related grievances of the affected parties and will provide them a public forum to raise their concern or objections. The chief of the Environmental and Social Unit of DDC will represent IA in the GRC. The GRC shall be located at subproject site so as to ensure easy access to communities and affected parties. The EA will be responsible to disseminate information about the functional norms of the GRC. The committee will meet at least twice in a year or as and when required.
51. The approach adopted for the Project ensures that all subprojects are community driven. Accordingly, design and implementation involves the groups potentially affected by the schemes, ensuring a very high level of public awareness and involvement at each stage. Procedures for public consultation and disclosure shall be incorporated in subproject implementation guidelines prepared for the Project. The main elements incorporated into the process of the Project include (i) understanding the project during the planning phase, (ii) physical and financial contributions during the contribution phase, and (iii) taking ownership for operation, maintenance and management of the irrigation systems after construction.
52. Rule 45 of the EPR, 1997 has authorized the CDO as the prescribed authority for grievance handling and readress. The applicant (affected people) has to mention the type of ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 24 Final Report – Linked Document 7: Environmental Assessment Review Framework loss suffered as a result of proponent‟s activities, and the amount of compensation sought. The CDO shall conduct an investigation into it as well as into the actual situation prevailing at the concerned place, as required, and also seek the opinion and suggestion from the concerned officer who would investigate the loss and send the report to CDO within 30 days from the date of receipt of the application. The CDO shall take a decision in respect to payment of compensation within 15 days from the date of receipt of suggestion from the concerned officer. If the application from the affected person or institution is not forwarded to the Environment Inspector, CDO shall take decision regarding the compensation within 6 days of application. The amount of the compensation determined by the CDO under this Rule shall be appropriate and reasonable. Rule 46 of EPR states that the proponent shall pay the compensation amount to the concerned individual or institution within 30 days from the date of determination of the amount of compensation. The CDO may extend the time limit not exceeding 30 days for one time.
VI. INSTITUTIONAL ARRANGEMENT AND RESPONSIBILITIES
53. DOLIDAR, under the Ministry of Local Development, shall be the Executing Agency (EA) for the project. It shall establish a Project Coordination Unit (PCU) in Kathmandu, headed by a Project Coordinator to coordinate all project activities; PCU shall be supported by a Central Implementation Support Consultant (CISC). The concerned District Development Committee (DDC) with support from the District Technical Office (DTO) shall implement the project, guided and monitored by the PCU. The District Project Office (DPO) shall be established within the DTO who shall be made responsible for project implementation. DPOs shall be supported by a District Implementation Support Consultant (DISC) comprising engineering consultants to cover technical issues and a local NGO involved in social mobilization and support for rural infrastructure building groups. The CISC shall provide the overall backstopping support to the district.
54. The DISC in each district shall provide technical support to the DDCs during the preparation of the IEE reports while the PCU/CISC shall be given supporting responsibility for approving the IEE reports.
55. The Ministry of Local Development (MLD) is authorized to approve TORs and the environment assessment reports for road infrastructure proposals requiring IEE as per EPR, 1997. Approval of the IEE Report from MLD leads to an Environmental Clearance of a subproject.
56. DISC will support the DPO for conducting REA survey during walkover survey of subprojects, while the environmental assessment during detailed feasibility study will be carried out and submitted to DDC through DTO. TORs for IEE shall be prepared by the concerned DDCs with inputs from the DISCs and sent to MLD through the PCU for approval. DPO shall carry out public consultation in the project areas. After approval of the TORs for the IEE, DDC through the DTO shall carry out IEE study, and prepare an IEE report for the subproject(s). DDC/DPO, with any required additional input of necessary subject-matter experts (as indicated in the TOR), shall prepare IEE report. The DDC shall submit the IEE report to ADB and MLD through PCU for approval. MLD shall inform the DDC and PCU about the approval of the IEE report. During the implementation phase, DPO supported by DISC shall be made responsible for establishing a Safeguard Desk for supervising, monitoring and reporting environmental safeguard compliance.
57. A „safeguard desk‟ shall be established in each district. The desk shall comprise of environment and social safeguard personnel of the DPO/DISC, with a focal person assigned as ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 25 Final Report – Linked Document 7: Environmental Assessment Review Framework coordinator. Monitoring of EMP compliance, documenting and reporting responsibilities shall be of the safeguard desk.
58. To ensure environmental safeguards in the Project, provision of an environment specialist at the DDC shall be arranged supported by the environmental team of CISC. Similarly, A Bio- engineer from CISC shall coordinate with bio-engineering technician in all the DPOs of the Project for planning of bio-engineering works, establishing nursery and carryout timely bio- engineering activities.
A. Environmental Roles and Responsibilities
59. Environmental roles and responsibilities of DOLIDAR as the executing agency and its organizations at central and district levels are summarized below.
60. MLD is the concerned line ministry responsible for review and approval of TOR and IEE reports. MLD has an Environmental Management Section and organizes a Review Committee for reviewing IEE reports;
61. DOLIDAR is responsible for overall project management and implementation, including environmental management;
62. Project Coordination Unit (PCU) has the overall responsibility of detailed planning of project implementation and in guiding and monitoring DDCs, including environmental planning and management in subprojects. The CISC and national NGO are part of the PCU;
63. CISC has an important role to play both at central and district level, and is responsible for technical assistance and advisory support for project management and monitoring, environmental planning such as TOR review and IEE report preparation, training of DISC in environment assessment, and periodic monitoring including impact evaluation. CISC has three persons working in the area of environment management; an Environment Assessment Advisor, a Senior Environment Assistant and an Environment Assistant;
64. DDC has overall responsibility for project implementation at district level. It is responsible for TOR preparation, commissioning IEE studies and preparing IEE reports, presenting IEE findings to MLD Review Committee meetings, implementing mitigation works as approved by MLD, and monitoring environmental programs both during construction and operation phases. During IEE report preparation, an Environment Specialist is appointed for a period of 6 months. The DDC gets technical support from DTO and DPO. The DDC also takes responsibility for the operation and maintenance of completed subprojects;
65. DTO within the DDC is the office responsible for all infrastructure related works of the DDC. The DTO has the responsibility of administering, overseeing, and monitoring, the functioning of DPO and providing support to DPO. DPO is responsible for preparing IEE reports in districts, eensuring that land acquisition and environmental procedures are completed on time before construction, implementing mitigation measures, day-to-day monitoring of environmental activities, coordinating other agencies for environmental management, and reporting environmental activities and compliance status to DDC and PCU/CISC during construction phase. The DPO together with DISC form the District Implementation Team;
66. DISC is responsible as a team to the DTO in each district. It supports the DTO in the subproject selection process, assist with feasibility studies, detailed studies, estimation and site supervision of construction and maintenance works, and social mobilisation, land compensation ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 26 Final Report – Linked Document 7: Environmental Assessment Review Framework and resettlement. The DISC has domestic engineering consultants and a social mobilizer. It supports the DPO in environmental planning, implementation of mitigation measures, and day- to-day monitoring; and
67. Environmental Responsibility of Contractors. Contractors are responsible for environmental works such as health and safety, spoil disposal, provision of masks to construction workers, management and rehabilitation of quarry sites, and other environmental activities as mentioned in the contract.
VII. MONITORING AND REPORTING
68. Environmental monitoring has been weak in most of the earlier rural infrastructure projects due to lack of commitment of resources and interest. The project will include a strong and independent monitoring mechanism to ensure that LEP principles, formal project requirements, and sub-project specific environmental mitigation measures are actually implemented. Monitoring needs to be done at both project and subproject levels. The environmental monitoring shall be in addition to the regular process checks and technical supervision.
A. Environmental Monitoring
1. Project Level Monitoring
69. The environment management section (EMS) of MLD will coordinate the overall project level monitoring. An annual budgetary provision shall be made for supporting the monitoring activities by EMS. The overall project level environmental monitoring shall be carried out by EMS in the first, third and fifth year of implementation, preferably during the active construction season. It shall focus on following aspects:
i. Compliance with the environmental screening and IEE requirements as per the EPR of GON and this EARF; ii. Use of environmental criteria for sub-project eligibility, planning, design and implementation as recommended in this EARF. Ensure that they are effectively applied; iii. Existence and effectiveness of district level mechanism for environmental monitoring; iv. Use of LEP method, and ensure mechanized method is not adopted before justifying and taking prior approval of ADB; v. Addressing environmental needs in the capacity building, training and awareness raising activities.
70. EMS will periodically visit sample project districts and inspect work sites.
2. Subproject Level Monitoring
71. Each DPO will arrange for regular subproject level environmental monitoring through safeguards desk. For supplementary infrastructure, where IEE level assessment may not be required, checks are necessary prior to construction to ensure that implementation of relevant environmental mitigation measures have been made for any outstanding environmental impacts. The subproject specific monitoring plan contained in the IEE report and the EMP will be followed. Monitoring shall be done by using monitoring checklist (a sample is attached in the annex). The safeguard desk will organize monthly safeguard meeting which shall be participated by all technical, environment and social team of the district project office. The meeting shall discuss environmental performance in the subproject works, issues and problems ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 27 Final Report – Linked Document 7: Environmental Assessment Review Framework being encountered, agree on their mitigation measures, prepare corrective action plan and ensure their implementation. The desk shall also maintain coordination and networking with environmental and social units of DDC and environment section of MLD. The safeguard desk will maintain minutes of meeting of each safeguard meeting and through DPO shall report all the safeguard matters along with copy of the minutes to the PCU.
3. Independent Monitoring
72. An independent third party monitoring shall be conducted once for all the subprojects prior to their completion, ideally when about 80% progress in civil works has been made. Third party environmental monitoring shall also be done at project level in an annual basis.
B. Environmental Reporting
73. Reporting on environmental safeguards in subprojects shall be regular, and included as a separate section in the monthly project progress report. Periodic environment monitoring report shall be submitted to ADB through PCU for all the subprojects in a trimesterly basis. A sample of environmental monitoring report is attached in the annex.
74. The central as well as district level stakeholders including PCU staff, DPO staff, BGs and contractor‟s staff shall be given orientation training to increase their capacity in environmental safeguards. These may include:
i. Adherence with proper subproject selection; ii. Prepare and deliver environmental awareness programs; iii. Prepare and deliver training programs addressing the environmental aspects of project activities, including on-the-job training for staff of DDCs, DoLIDAR and MLD; iv. Conduct independent monitoring both at project and subproject levels. ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 28 Final Report – Linked Document 7: Environmental Assessment Review Framework
VIII. ATTACHMENTS
A. Attachment 1: Rapid Environmental Assessment Checklist
Instructions:
This checklist is to be prepared to support the environmental classification of a project. It is to be attached to the environmental categorization form that is to be prepared and submitted to the Chief Compliance Officer of the Regional and Sustainable Development Department.
This checklist is to be completed with the assistance of an Environment Specialist in a Regional Department.
This checklist focuses on environmental issues and concerns. To ensure that social dimensions are adequately considered, refer also to ADB checklists and handbooks on (i) involuntary resettlement, (ii) indigenous peoples planning, (iii) poverty reduction, (iv) participation, and (v) gender and development.
Answer the questions assuming the “without mitigation” case. The purpose is to identify potential impacts. Use the “remarks” section to discuss any anticipated mitigation measures.
Country/Project Title:
Sector Division: Transportation
SCREENING QUESTIONS Ye No REMARKS s A. Project Siting
Is the Project area adjacent to or within any of the following environmentally sensitive areas? Cultural heritage site
Protected Area
Wetland Mangrove
Estuarine
Buffer zone of protected area
Special area for protecting biodiversity
Potential Environmental Impacts
Will the Project cause… encroachment on historical/cultural areas; disfiguration of landscape by road embankments, cuts, fills, and quarries?
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SCREENING QUESTIONS Ye No REMARKS s encroachment on precious ecology (e.g. sensitive or protected areas)? alteration of surface water hydrology of waterways crossed by roads, resulting in increased sediment in streams affected by increased soil erosion at construction site? deterioration of surface water quality due to silt runoff and sanitary wastes from worker-based camps and chemicals used in construction? increased local air pollution due to rock crushing, cutting and filling works, and chemicals from asphalt processing? noise and vibration due to blasting and other civil works? dislocation or involuntary resettlement of people other social concerns relating to inconveniences in living conditions in the project areas that may trigger cases of upper respiratory problems and stress?
hazardous driving conditions where construction interferes with pre-existing roads? poor sanitation and solid waste disposal in construction camps and work sites, and possible transmission of communicable diseases from workers to local populations? creation of temporary breeding habitats for mosquito vectors of disease? dislocation and compulsory resettlement of people living in right-of-way? accident risks associated with increased vehicular traffic, leading to accidental spills of toxic materials and loss of life? increased noise and air pollution resulting from traffic volume? increased risk of water pollution from oil, grease and fuel spills, and other materials from vehicles using the road?
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B. Attachment 2: Sample EMP Budget Template
Items Cost Lead Agency Description 1. Environmental Mitigation Measures e.g. e.g. Compensatory District Forest e.g. Cost of growing plant saplings, plantation cost, plantation Office, watering and guarding cost for project period. DDC Other
Benefit Augmentation Measures 2. Environmental Monitoring Mitigation e.g. Cost for undertaking site visits, preparing Compliance e.g. DPO / DISC monitoring reports Inspections Point Source Emission Monitoring Ambient
Monitoring Other 3. Capacity Building, Other e.g. Ecological and other surveys, detailed Mitigation Design e.g. DPO/DISC mitigation design and planning Training and
Capacity Building Other 4. Contingency
5. Total
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C. Attachment 3: Sample Impact Assessment and Mitigation Matrices
Mitigation Significance of Impacts* Measures Phase/ Responsibl Est. Potential Impacts Directio Magnitud Probabilit Activities Duration e Agency Budget n e y (S / M / L) (- / +) (L / M / H) (L / M / H) Environmental Issues Associated with Project Siting / Preconstruction Siting e.g. Activities Resettlement, encroachment into critical habitats, agro- systems, etc
Environmental Issues Associated with Project Construction Construct e.g. Hydrology, ion water quality, air Activities quality, noise, biodiversity (flora, fauna, critical habitats), natural resources, pollution discharges, worker safety and health, etc
Environmental Issues Associated with Project Operation Operatio e.g. Hydrology, n water quality, air Activities quality, noise, biodiversity (flora, fauna, critical habitats), natural resources, pollution discharges, ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 32 Final Report – Linked Document 7: Environmental Assessment Review Framework
worker safety and health, etc Other items as required (e.g. Emergency Response Procedures)
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*Impact Significance Direction, Magnitude, Probability and Duration Coding (Indicative examples only) Parameter / Code Definition Predicted Impact Direction - = Negative Impact is unfavorable, and will cause a reduction in the value or quality of environmental and social resources + = Positive Impact is favorable, and will cause an increase in the value or quality of environmental and social resources Predicted Impact Magnitude Above typical background conditions or concentrations, but within established / accepted protective standards L = Low or: Causing no detectable biological, social or economic parameter changes Considerably above background conditions or concentrations or established / accepted protective standards, but below established criteria or scientific effects thresholds associated with potential adverse effects M = Moderate or: Causing detectable biological, social or economic parameter changes, but within the range of natural variability Above established criteria or scientific effects thresholds associated with potential adverse effects or: H = High Causing (a) detectable change(s) in biological, social or economic parameters that is outside the range of natural variability Predicted Impact Probability L = Low Less than 10% likelihood of occurring over the duration of the impact M = Moderate Between 10% and 90% likelihood of occurring over the duration of the impact H = High More than 90% likelihood of occurring over the duration of the impact Predicted Impact Duration S = Short Effects are significant for less than one year
M = Medium Effects are significant for one to ten years
L = Long Effects are significant for greater than ten years
ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 34 Final Report – Linked Document 7: Environmental Assessment Review Framework
D. Attachment 4: Sample Grievance Intake Form
Name of Project
Project ____ welcomes complaints, suggestions, comments and queries regarding the project implementation and its stakeholders. We encourage persons with grievance to provide their name and contact information to enable us to get in touch with you for clarification and feedback.
Should you choose to include your personal details but want that information to remain confidential, please inform us by writing/typing "(CONFIDENTIAL)" above your name.
Thank you. Top of Form
Contact Information
Name Gender □ Male □ Female Home Address Age Phone No. City/District Email Complaint/Suggestion/Comment/Question Please provide the details (who, what, where and how) of your grievance below:
How do you want us to reach you for feedback or update on your comment/grievance?
Portion to be filled in by the staff:Portion to be filled in by the staff:Portion to be filled in by the staff: Portion to be filled in by the staff: Date received:
Received through: __ In person __ mail __ email __ fax __ phone __ sms Name of staff who receive comment/ ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 35 Final Report – Linked Document 7: Environmental Assessment Review Framework complaint Position of staff:
Type of Grievance: □□
Remarks
SignatureSignature of staff
Update on the case: Date: Update
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E. Attachment 5: Sample Monitoring Plan Templates
1. Mitigation Compliance Inspection Monitoring Compliance Project Phase Mitigation Location Frequency Responsibility Budget Inspection Activities Pre-construction
Construction
Operation
Closure
2. Point Source Emission Monitoring Monitoring Location Frequency Responsibility Budget Mitiga Sampling and Project Phase Paramet Standar Comparison tion Analysis Result er d with Standard Method Pre-construction
Construction
Operation
Closure
3. Ambient Monitoring Monitoring Location Frequency Responsibility Budget Mitiga Sampling and Project Phase Paramet Standar Comparison tion Analysis Result er d with Standard Method Pre-construction
Construction
Operation
Closure
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F. Attachment 6: Sample Site Environmental Compliance Inspection and Monitoring Form
Project : Implementing Agency :
Sub-Project : Monitoring Agency :
Location : Enforcement Agency :
Date : Contractor(s) :
Reporting Period : Implementation Phase: Preconstruction / Construction / Operation
Contractor(s) Contractor(s) Environmental Awareness Yes / No Actions Required Contractor Response / Comment
Contractor(s) aware of mitigation requirements?
Contractor(s) have a copy of EMP?
Mitigation Compliance Inspection Impact / Mitigation Mitigations Mitigations Endorsed by: Impact Observed / Action Required Contractor Measure Implemented Effective? Location Response / (From EMP) (Yes, No) (1 to 5)* Implementing Monitoring Comment Agency Agency
* Mitigation Effectiveness Rating Criteria (Indicative examples) Very Good (all required mitigations implemented) Good ( the majority of required mitigations implemented) Fair (some mitigations implemented) Poor (few mitigations implemented) Very Poor (very few mitigations implemented) ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 38 Final Report – Linked Document 7: Environmental Assessment Review Framework
Emission Discharge Monitoring (if relevant) Endorsed by: Parameter Date / Monitoring % Contractor Measured Monitorin Location Equipment Result Standard Exceedenc Action Required Responses / Implementin by g e Comments g Agency Agency
Ambient Monitoring (if relevant) Endorsed by: Parameter Date / Monitoring % Contractor Measured Monitorin Location Equipment Result Standard Exceedenc Action Required Responses / Implementin by g e Comments g Agency Agency
Environmental Incidents During Reporting Period (if relevant) Endorsed by: Environmental Incidents Date / Reported Description / Action Taken Further Action Required (accidents, spills, complaint) Location by Location Implementing Monitoring Agency Agency
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Summary of Actions Required and Follow-up (if relevant) Follow-up Action Required Timeframe Responsible Parties (to be completed if inspection/monitoring indicates actions are (e.g. within one week) required) Required Action Taken:
Effectiveness:
Further Action Required?:
Prepared by:
Date:
Inspection Completed by:______Date:______
Signature:
Notes:
Attachments: (e.g. laboratory reports, photographs)
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G. Attachment 7: Outline of a Project Environmental Progress and Monitoring Report
1. Introduction 1.1. Report Purpose 1.2. Project Implementation Progress
2. Incorporation of Environmental Requirements into Project Contractual Arrangements Manner by which EMP requirements are incorporated into contractual arrangements, such as with contractors or other parties.
3. Summary of Environmental Mitigations and Compensation Measures Implemented Based on EMP; may include measures related to air quality, water quality, noise quality, pollution prevention, biodiversity and natural resources, health and safety, physical cultural resources, capacity building, and others.
4. Summary of Environmental Monitoring 4.1. Compliance Inspections (if relevant) 4.1.1. Summary of Inspection Activities 4.1.2. Mitigation Compliance6 4.1.3. Mitigation Effectiveness7
4.2. Emission Discharge (Source) Monitoring Program (if relevant) 4.2.1. Summary of Monitoring 4.2.2. Results 4.2.3. Assessment8
6 Overall compliance with mitigation implementation requirements could be described in qualitative terms or be evaluated based on a ranking system, such as the following: 1. Very Good (all required mitigations implemented) 2. Good (the majority of required mitigations implemented) 3. Fair (some mitigations implemented) 4. Poor (few mitigations implemented) 5. Very Poor (very few or no mitigations implemented) Additional explanatory comments should be provided as necessary.
7 Effectiveness of mitigation implementation could be described in qualitative terms or be evaluated based on a ranking system, such as the following: 1. Very Good (mitigations are fully effective) 2. Good (mitigations are generally effective) 3. Fair (mitigations are partially effective) 4. Poor (mitigations are generally ineffective) 5. Very Poor (mitigations are completely ineffective) Additional explanatory comments should be provided as necessary.
8 Discharge levels should be compared to the relevant discharge standards and/or performance indicators noted in the EMP. Any exceedences should be highlighted for attention and follow-up. In addition, discharge levels could be compared to baseline conditions (if baseline data is available) and described in qualitative terms or be evaluated based on a ranking system, such as the following: 1. Very Good (overall conditions are generally improved) 2. Good (conditions are maintained or slightly improved) 3. Fair (conditions are unchanged) 4. Poor (conditions are moderately degraded) 5. Very Poor (conditions are significantly degraded) Additional explanatory comments should be provided as necessary.
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4.3. Ambient Monitoring Program (if relevant) 4.3.1. Summary of Monitoring 4.3.2. Results 4.3.3. Assessment9
5. Key Environmental Issues 5.1.1. Key Issues Identified 5.1.2. Action Taken 5.1.3. Additional Action Required
6. Conclusion 6.1. Overall Progress of Implementation of Environmental Management Measures10 6.2. Problems Identified and Actions Recommended
Appendices 1. Site Inspection / Monitoring Reports 2. Ambient Monitoring Results 3. Photographs 4. Others
9 Ambient environmental conditions should be compared to the relevant ambient standards and/or performance indicators noted in the EMP. Any exceedences should be highlighted for attention and follow-up. In addition, ambient environmental conditions could be compared to the baseline conditions (if baseline data is available) and described in qualitative terms or be evaluated based on a ranking system, such as the following: 1. Very Good (overall conditions are generally improved) 2. Good (conditions are maintained or slightly improved) 3. Fair (conditions are unchanged) 4. Poor (conditions are moderately degraded) 5. Very Poor (conditions are significantly degraded) Additional explanatory comments should be provided as necessary.
10 Overall sector environmental management progress could be described in qualitative terms or be evaluated based on a ranking system, such as the following: 1. Very Good 2. Good 3. Fair 4. Poor 5. Very Poor Additional explanatory comments should be provided as necessary. Decentralized Rural Infrastructure and Livelihoods Project II (DRILP II) (ADB TA No. 7573-NEP)
FINAL REPORT - Linked Document 8 – Initial Environmental Examination
Prepared for the Asian Development Bank and Government of Nepal
ANZDEC Limited in association with Consolidated Management Services Nepal (P) Ltd. August 2011
ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 1 Final Report - Linked Document 8: Initial Environmental Examination
TABLE OF CONTETS
Page
I. INTRODUCTION 2 A. Purpose and Scope 2 B. Objectives of the IEE 3 C. Methodology 3
II. POLICY LEGAL AND ADMINISTRATIVE FRAMEWORK 4 A. National Legal Provisions 4 B. International Conventions 6 C. Safeguard Policy Statement 2009 of ADB 6
III. DESCRIPTION OF THE PROJECT 7 A. Type and Category of the Project 7 B. Major Components of the Project 7 C. Location of the Subprojects 7 D. Need for the Subprojects 8
IV. DESCRIPTION OF THE ENVIRONMENT (BASELINE DATA) 8 A. Physical Environment 8 B. Biological Environment 11 C. Socioeconomic Environment 13
V. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES 17 A. Environmental Impacts (Construction and Operation Phase) 17 B. Mitigation Measures (Construction and Operation Phases) 23
VI. ANALYSIS OF ALTERNATIVES 31
VII. INFORMATION DISCLOSURE, CONSULTATION AND PARTICIPATION 32
VIII. GRIEVANCE REDRESS MECHANISM 32
IX. ENVIRONMENT MANAGEMENT PLAN 33 A. Environmental Monitoring 33 B. Institutional Requirements for Implementing EMP 40
X. CONCLUSIONS AND RECOMMENDATIONS 41
ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 2 Final Report - Linked Document 8: Initial Environmental Examination
INITIAL ENVIRONMENTAL EXAMINATION
I. INTRODUCTION
A. Purpose and Scope
1. The Decentralized Rural Infrastructure and Livelihood Project seeks to reduce rural poverty in 18 post conflict districts of Nepal which are mainly in hilly and mountainous northern districts of the country. The 18 districts are (i) Taplejung, Solukhumbu and Okhaldhunga districts in Eastern Development Region; (ii) Ramechhap district in Central Development Region; (iii) Gorkha, Lamjung, Myagdi and Baglung in Western Development Region; (iv) Jajarkot, Dolpa, Jumla, Kalikot, Mugu and Humla in Mid-western Development region; and (v) Bajura, Bajhang, Baitadi and Darchula districts in Far West Development Region. The purpose of the project is sustainable increased access to economic and social services, and enhanced social and financial capital for people in the project area, particularly poor and disadvantaged groups in conflict areas. The project comprises three components: (i) improving rural infrastructure focused on transport, (ii) community development and rural livelihoods restoration, and (iii) institutional strengthening/capacity building at the district level. The project aims to improve and rehabilitate 580 km of district roads. In addition, the project will implement trail bridges, and supplementary investment projects such as schools, community centres, and the like.
2. The project is intended to strengthen the decentralization process in 18 project districts. Specific sub-objectives in this respect are fostering community participation, institutional strengthening of the various district agencies and committees, and related capacity building. It intends to maximize employment opportunities in the project districts through use of labour intensive methods, giving preference to project-affected persons, women, and disadvantaged groups. The project plays an important role in improving accessibility in the rural areas of Nepal, and specifically in the 18 project districts. The severe rural poverty in the project districts can be attributed in part to the lack of accessibility to rural infrastructure (especially rural transport infrastructure), which directly inhibits effective delivery of better quality services (such as for health and education), by both the public and private sectors. In addition, without adequate rural transport infrastructure, farmers are constrained in their ability to invest in on-farm, value-adding facilities, as well as accessing markets for their produce. The project will develop and rehabilitate 260 km of roads in the 18 project districts.
3. The project being a sector project, an Environmental Assessment and Review Framework (EARF) has to be prepared for the Project. As a process, initial environmental examination of a few sample potential subprojects are carried out to use the findings for preparation of the EARF. In this context, three subprojects - Barabis-Artichaur Road in Bajura, Garma-Nele- Budhidanda Road in Solukhumbu, and Sanghu-Dobhan Road in Taplejung districts were selected to undertake their initial environmental examination (IEE) study as part of the subproject design. These three subprojects were prepared under the past Decentralized Rural Infrastructure and Livelihood Project funded by ADB. They are designed to address potential environmental impacts by adopting labour-based environment friendly and participatory (LEP) approach for implementation. The IEE studies assessed the environmental consequences of road construction activities and suggested appropriate, practical and site specific mitigation and enhancement measures. These three subprojects were thus selected, their IEE reports reviewed, and this consolidated IEE report has been prepared for the purpose of the project.
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4. The IEE reports for these three subprojects were prepared by the respective DDCs in accordance with GON’s environmental regulations and ADB’s environmental procedures. They have been approved by the ADB and the Ministry of Local Development (MLD) in the year 2010 (refer following table 1).
B. Objectives of the IEE
5. This Initial Environmental Examination (IEE) is prepared to satisfy the requirements of ADB for environmental due diligence on the project based on ADB’s Safeguard Policy Statement (2009), and requirements of Environmental Protection Act 1997 (EPA) and Environmental Protection Rule 1997 (amended 2007) (EPR) of Government of Nepal (GON).
6. This IEE includes the following:
(i) a review of the policies and guidelines of the Government of Nepal and the Asian Development Bank; (ii) an examination of the salient physical, biological and socioeconomic conditions of the project area; (iii) an identification of the major environmental issues and an assessment of the magnitude of the potential environmental impacts of the project actions; (iv) an assessment of the potential climate risk on the project; (v) an assessment of the recommended mitigation and enhancement measures, including monitoring; and (vi) preparation of an IEE report in the ADB format (this report).
C. Methodology
7. The District Development Committee (DDC) and District Project Office (DPO) supported by the District Implementation Support Consultant (DISC) teams of DRILP have prepared the IEE studies. Baseline surveys, data analysis, prediction of project impacts, recommendations of mitigation measures, and preparation of environmental management plans (EMP) have been done in the IEE reports. The methodology included followings:
(i) Desk review: Collection and review of secondary information, initial interaction and consultation with the local community and district level stakeholders, delineation of geographical boundary of the influence area on the topographical map, and preparation of project specific checklist;
(ii) Field Survey: Primary data and information on physical, biological and socio- economic and cultural environment were collected through the field survey in the project area. It comprised of walkthrough survey, consultation with community, site inspection and observation. The IEE study team organized Focus Group discussion with key informants, administered questionnaire to collect socio-economic information in the ‘zone of influence’, household listing survey land and other physical and biological asset, and stripping mapping to document environmental features;
(iii) Public consultation included a 15-day public notice published in a national daily newspaper seeking written opinion and suggestions from concerned VDCs and other institutions. Meetings were held with the local community and meeting minutes were prepared. The concerned VDCs were informed about the project and the IEE report
ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 4 Final Report - Linked Document 8: Initial Environmental Examination
as part of public disclosure, and recommendations were obtained from these VDCs. Comments and suggestions from VDCs and other stakeholders were incorporated in the final report;
(iv) Compilation of baseline information: data and information collected from primary and secondary sources were processed, analysed and tabulated;
(v) Impact identification and prediction: project induced impacts during construction and operation phase were identified and their magnitude, extend and duration were assessed; and
(vi) Appropriate mitigation measures (preventive, corrective, compensatory and enhancement) for each project impact were worked out.
(vii) Environmental monitoring and management plan was developed along with monitoring indicators, method and frequency of monitoring, responsible agency and cost.
8. The dates of field surveys, IEE reports submission by DDCs and approval by MLD are given in Table 1. Prior to the approval by MLD, the ADB reviewed and gave concurrence to the IEE reports.
Table 1: Field survey and IEE report preparation and approval Field survey IEE report IEE Report Subproject started submitted approval Barabis-Artichaur Road, Bajura district January 2010 July 2010 September 2010 Garma-Nele- Budhidanda Road, August 2009 July 2010 October 2010 Solukhumbu district Sanghu-Dobhan Road, Taplejung district July 2007 September 2008 November 2010
II. POLICY LEGAL AND ADMINISTRATIVE FRAMEWORK
A. National Legal Provisions
9. Following table 2 presents the national legal provisions applicable to the project and reviewed during the IEE preparation:
Table 2: Review of National Policies, Environmental Acts, Regulations and Guidelines of GON SN National Environmental Description of Requirements Acts, Regulations and Guidelines 1 Three Years Interim Plan, Requires all projects will be formulated and constructed based on 2007/08-2009/10, GoN methods that optimally utilize the local skill and resources and generate employment opportunities. 2 Environmental Protection Any development project, before implementation, shall pass through Act, 1997, GoN environmental assessment, which may be either IEE or an EIA depending upon the location, type and size of the projects. 3 Environmental Protection The EPR and its schedules clearly provide various step-wise Rule 1997 (amendment, requirements to be followed while conducting the IEE study. It also 2007), GoN obliges the Proponent to timely consult and inform the public on the contents of the proposal and IEE study. 4 Forest Act, 1993 Requires decision makers to take account of all forest values, (amendment, 2007), GoN including environmental services and biodiversity, not just the
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production of timber and other commodities. It includes several provisions to ensure development, conservation, management, and sustainable use of forest resources based on approved work plan. 5 Forest Rules, 1995, GoN Elaborates legal measures for the conservation of forests and wildlife. Expenses incurred for cutting trees and transportation shall be borne by proponent. 6 Batabaraniya Nirdesika The directive is focused in the practical implementation of small rural (Nepal; MLD), 2057, GoN infrastructures through the minimization of environmental impacts. This directive includes the simple methods of environmental management in the different phases of the project cycle. 7 National Park and Wildlife Addresses for conservation of ecologically valuable areas and Conservation Act, 1973, indigenous wildlife. The Act prohibits trespassing in park areas, GoN prohibits wildlife hunting, construction works in park area, damage to plant and animal, construction of huts and house in park area without permission of authorized person. It lists 26 species of mammals, 9 species of birds, and 3 species of reptile as protected wildlife. 8 Local Self Governance Empowers the local bodies to formulate and implement periodical Act (1999) and and annual plans within their own jurisdiction. They also authorizes Regulation (1999), GoN the local bodies for conservation of soil, forest and other natural resources, and implement environmental conservation activities. 9 Land Acquisition Act, Specifies procedural matters on land acquisition and compensation 1977 and Land Acquisition Rules, 1969, GoN 10 National Environmental Provides guidance to project proponent on integrating environmental Impact Assessment mitigation measures, particularly on the management of quarries, Guidelines, 1993, GoN borrow pits, stockpiling of materials and spoil disposal, operation of the work camps, earthworks and slope stabilization, location of stone crushing plants etc. 11 APPROACH for the Emphasizes labor based technology and environmental friendly, Development of local resource oriented construction methods to be incorporated Agricultural and Rural actively in rural infrastructure process. Roads, 1999, GoN 12 Explosive Material Act, It requires prior approval of Chief District Officer to purchase and use 1962 explosives. 13 Reference Manual for Suggests stepwise process of addressing environmental and social Environmental and Social issues alongside the technical, financial and others Aspects of Integrated Road Development, 2003, GoN 14 Green Roads in Nepal, Focuses on participatory, labor based and environment friendly Best Practices Report: An technology with proper alignment selection, mass balancing, proper Innovative Approach for water management, bioengineering and phased construction Rural Infrastructure Development in the Himalayas and Other Mountainous Regions, 1999, GoN
10. The Environment Protection Act, 1997 (EPA) and Environment Protection Rules, 1997 (EPR) are the main legislation governing the environmental safeguards in Nepal. Section 3 of the EPA mandates any project proponent to carry out an environmental assessment of a project (proposal) in the form of an Initial Environmental Examination (IEE) or an Environmental Impact Assessment (EIA), as prescribed. It prohibits anyone to implement any project proposal without
ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 6 Final Report - Linked Document 8: Initial Environmental Examination getting an EIA or an IEE report approved by the concerned government authority. Rule 3 of the EPR, 1997 requires the project proponent to carry out an IEE for the kinds of the projects that are listed in Schedule 1 or to carry out an EIA for the kinds of the projects that are listed in Schedule 2 of the Rules. Road infrastructure proposals requiring an EIA or an IEE as per EPR 1997 are listed in Table 3.
Table 3: Road Infrastructure Proposals requiring IEE or EIA IEE Threshold EIA Threshold District Roads National highways Urban roads Main feeder roads Rural roads More than 5 km long ropeway or cable car routes Small feeder roads More than 5 km long agricultural road 1 to 5 km long agricultural road Road passing through national parks, wild life sanctuaries and conservation areas 1 to 5 km long ropeway or cable car routes Major bridges (> 20m span) Rehab. of national highways and feeder roads. *Sources: Environmental Protection Act (EPA, 1997 amended 1999); Environmental Protection Rules (EPR, 1997 amended 2007) which provides screening criteria for IEE and EIA
11. The Government of Nepal has prepared a National Adaptation Program of Action (NAPA) to climate change in 2010. The NAPA has been instrumental in mainstreaming climate change in development planning. The NAPA has developed a framework for adaptation programme, and has identified key adaptation needs, existing adaptation practices and options for developed projects including infrastructure.
B. International Conventions
12. Nepal has signed several international conventions such as Convention on International Trade in Endangered Species of Wild Fauna and Flora –CITES (1975), Convention on Biodiversity (1992), and ILO Convention on Indigenous and Tribal Peoples -No.169 (1989). The IEE report follows these conventions.
C. Safeguard Policy Statement 2009 of ADB
13. According to the Safeguard Policy Statement 2009 of ADB, a proposed project is classified as category B if its potential adverse environmental impacts are less adverse than those of category A projects. These impacts are site-specific, few if any of them are irreversible, and in most cases mitigation measures can be designed more readily than for category A projects. An initial environmental examination is required for category B projects. The project falls under Environment Category B, and requires Initial Environmental Examination (IEE) of the subproject roads. ADB’s Safeguard Policy Statement 2009 restricts implementation of project activities in areas of critical habitats1, unless there are no measurable adverse impacts on the critical habitat that could impair its ability to function.
14. Based on all the above said legal provisions and guidelines, the three subprojects under the project are categorized a Category B, and requires an IEE study.
1 Refer glossary in the safeguard policy statement 2009 of ADB
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III. DESCRIPTION OF THE PROJECT
A. Type and Category of the Project
15. The will construct and/or rehabilitate 260 km of rural feeder roads in the 18 Project districts. The three subprojects in Bajura, Taplejung and Solukhumbu will construct 71.6 km of 5 m wide rural earthen road, including rehabilitation of 10.0 km long agricultural road in Bajura and Solukhumbu where 3-4 m track was opened by DDC. The stakeholders comprise of bus/truck owners and operators, local traders, growth centres, and local people mostly farmers. It has been envisaged that the participation of stakeholders will create a sense of road ownership and they could pay attention to effective maintenance.
16. This is a category B project as per ADB classification requiring an initial environmental examination, and under the IEE threshold as per EPR classification of the Government of Nepal. Project impacts are site specific, and in most cases mitigation measures can be designed more readily.
B. Major Components of the Project
17. Impact and Outcome. The expected impact of the project will be reduced rural poverty in 18 very poor and remote hill and mountain districts of Nepal affected by the civil conflict. The expected outcome of the project will be improved rural communities' access to goods, services, facilities, and employment opportunities.
18. Outputs. The project will have four inter-linked outputs: (i) community development and rural livelihood restoration; (ii) capacity building and decentralized local governance; (iii) rural transport infrastructure; and (iv) project management services.
C. Location of the Subprojects
19. The three subprojects for implementation for which IEE studies have been undertaken are Barabis-Artichaur Road in Bajura district, Garma-Nele- Budhidanda Road in Solukhumbu district, and Sanghu-Dobhan Road in Taplejung district.
(i) Barabis-Aatichaur road, Bajura district, Far Western Development Region: The proposed 22.7 km long sub-project starts at Betalmandu of Barabis VDC and passes through Kuldevmandu and Gudukhati VDCs ending at Lamgaun of Aatichaur VDC. Betalmandu is on Sanphebagar–Martadi feeder road which is under construction by the Department of Road (DoR) and track has opened up to Martadi. The altitudinal variation ranges from 1,137 m above mean sea level at Barabis Bazaar to an elevation of 2,045 m above mean sea level at Lamgaun of Aatichaur. Major settlements through which the alignment passes are Betalmandu, Bayal, Kharekhet of Barabis VDC; Guiban and Mauwadi of Gudukhati VDC; Jhali, Bedu Panera, Banegau, Delta, Olisain, Sahubada of Kuldevmandu VDC; and Lamagaun of Aatichaur VDC. This road has valley and ridge alignment which mainly passes through cultivated land, forest area and public land.
(ii) Sanghu-Dobhan Road, Taplejung district, Eastern Development Region: The proposed 21.8 km road starts from nearby of Sanghu Bazaar of Sanghu VDC and ends at Satighat near Dobhan of Change VDC. The Road passes through the settlements such as Sanghu bazaar, Patigaun, Koldanda, Dhungesanghu, Telbung
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of Dhungesanghu VDC; and Change, Nesum, Thade, Banjhogara, Tilbari and Dobhan of Change VDCs. The road is accessible by an earthen road from Fungling, end point of present Mechi Highway to Dobhan.
(iii) Garma-Nele-Budhidanda Road Solukhumbu district, Eastern Development Region: The proposed 27.1 km long road starts from Jorbouddha at Garma VDC, passes along Nele and Mukli VDCs and ends at the Bhudidanda of Deusa VDC. The road passes through the Nemar, Tojing and Najing settlements of Garma VDC; the central part of the Nele VDC (Jogara and Nele Bazaar which is one of the main market centers of Solukhumbu for South-eastern part of the district); northern part of the Mukli VDC; and through the eastern part of Deusa VDC. The road alignment passes through existing trail and track.
D. Need for the Subprojects
20. The DRCC meeting finalized and gave the highest priority to the proposed roads. In mountain regions, there is a lack of road transport and most of the agricultural products, non- timber forest products, and consumable goods are transported by porters or mules or sheep. The proposed roads will be advantageous to the people in this region. The Sanghu-Dobhan Road in Taplejung district will provide better opportunities to tourists trekking to the Kanchanjungha Conservation area.
21. The proposed road subprojects will save considerable travel time and improve income generation potential in the three districts, enhance commercial opportunities; and improve market access due to easy access to southern parts of the country where the major markets are. Moreover, road construction will provide short term employment by engaging the rural poor people in construction activities. In remote mountain areas, people typically face food shortages and the road subprojects will help people to reinstall economic activities in the area by creating employment and other opportunities.
IV. DESCRIPTION OF THE ENVIRONMENT (BASELINE DATA)
A. Physical Environment
22. For each subproject, baseline information on the existing physical, biological, socio- economic and cultural environment of the subproject area is described. In terms of the physical environment, general information on topography, geology and soil types, land use, climate, hydrology and drainage system, soil erosion and sedimentation, and air, noise and water quality are provided.
1. Topography
23. Barabis-Aatichaur road passes through the upper valley and ridges of steep hills in the mountainous region. The road starts at 1,137 m (Betalmandu) and reaches up to 2,146 m at the border of Gudukhali and Artichaur. The slope varies from 10° to 40°. Major portion of the road passes along the South and East facing slope. The lowest elevation of the proposed road is 1,137 m at Barabis Bazaar and highest elevation of 2,146 m at the border of Gudukhati and Aatichaur.
24. The Sanghu-Dobhan Road in Taplejung district passes through gentle-to-moderate slopes in the mountainous region with the elevation gradually falling from 1,650 m at Sanghu Bazar to
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650 m at Dobhan. There are some steep slopes. In some areas the road passes through spur- ridge and saddle. The slope aspects in the road alignment vary NE-NW due to rugged topography of the area. The rock slope is more than 60º.
25. The proposed Garma-Nele-Budhidanda road sub-project lies in the mountainous region. The alignment of road starts at Jorbouddha, Garma VDC at an elevation of 2,100m and ends at Budhidanda of Deusa VDC (1,745 m). The road passes through gentle-to-moderate slopes in hills, valleys and ridges, and the general aspect of the road alignment is South-East and North- West.
2. Geology and Soils
26. Barabis-Aatichaur Road corridor is in the Higher Himalayan Crystalline region that composed of gneisses and migmatites. In many sections of the road alignment, rock exposures are observed. In general soil type along the alignment is basically colluvial, alluvial and sandy.
27. Sanghu-Dobhan Road alignment comprises mainly of medium to high grade metamorphic rocks like phyllite, quartz-schist garnetiferous schist and gneiss etc. The road corridors in various sections have joints, fractures, crushed and shear zones. Weathering of rocks is moderate. Soil types along the road alignment are alluvial, colluvial and residual. Generally, the soils are of light to medium textured. Colluvial soil is the most dominant soil type along the road corridor and the area possessing this soil type have moderate to steep slope. Steeper slope with rocky exposures are usually covered with thin layers of colluvial soil and they are susceptible to soil creeping, sheet, rill and gully erosion and thus requires special stabilization measures at these places.
28. The Garma-Nele-Budhidanda Road alignment comprises of different types of rocks. The road corridor falls in the Higher Himalayan Crystalline region that is composed of gneisses and migmatites. In many sections of the road alignment, rock exposures are observed. In general soil type along the alignment is basically colluvial, alluvial and sandy.
3. Soil Erosion and Sedimentation
29. The Barabis-Artichaur road alignment passes through mountainous region, and there are fragile areas and rocky areas in the road alignment. The stability of slopes along the road corridor depends upon slope angle, material constituting the slope, rock discontinuity, and hydrological conditions. There are major landslide and erosion prone areas along the road alignment at Jhali in Kuldevmandu VDC, Sahubada in Kuldevmandu VDC, and Guiban in Gudukhati VDC. In many road sections, rock exposures are observed.
30. The Sanghu-Dobhan Road passes through mountainous region. Though gully and sheet erosion are predominant in the area, deep seated landslides and major instability prone areas are not present along the road alignment. Along the road corridor, gully erosion and sheet erosion is prominent in nearby small streams.
31. In the Garma-Nele-Budhidanda Road alignment, few small scale slides (slumps) are observed at the 1+270 and 4+600 chainages, and a large scale landslide at the Ch 12+500. There are two quarry sites along the road alignment.
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4. Climate
32. Barabis-Aatichaur road lies in the warm temperate climatic region with average minimum and maximum temperatures of 3°C and 25°C, respectively. The annual precipitation is 2,580 mm.
33. The climate of the Sanghu-Dobhan road alignment area varies from sub tropical in Dobhan near Tamor River with the mean minimum and maximum temperatures of 50C and 350C to warm temperate at Sangu Bazar.
34. The Garma-Nele-Budhidanda Road alignment has temperate climate and the temperature drops down to less than 0°C, the mean minimum and maximum temperatures are 1.8° C and 11.5°C, respectively.
5. Hydrology and Drainage system
35. There are six major streams along the proposed Barabis-Aatichaur road alignment and all of them are rain-fed (Table 2).
36. There are no major streams across the Sanghu – Dobhan road alignment. There are small rain-fed streams and irrigation canals in the road alignment. However, these streams along with slope erosion due to mass wasting and inherent geological material are the main geomorphologic agents sculpturing the area.
37. There are several streams and gully crossings in the Garma-Nele-Budhidanda road alignment, and all these streams are perennials (Table 4). None of these three proposed road alignment has wetlands.
Table 4: Streams at the road alignment Subproject Name of Stream Span Remarks Barabis- Dungri Khola, Padhero gairi, Karrya Khola, and 4-8 m Causeway Aatichaur road Dhane Bagar proposed Jhigane Khola and Barju Gad 40 m Bridge required each Sanghu-Dobhan Names of streams Road are not recorded Garma-Nele- Garma Kholsi, Okhargaire Khola, Chari 9-15 m Gabion causeway Budhidanda Changa, Bhitte Khola II, Khahare Khola, proposed Road Kattike Khola, Harkate Khola and Sikhu Khola Bhitte Khola I and Barkhu Khola 20-28 m RCC causeway proposed Ghatte Khola 14 m Box culvert proposed
6. Land Use
38. The Barabis-Aatichaur road passes through cultivated land, forest area and barren land. There are 7.22 ha of farming areas, including 1.07 ha thatch-grass, 2.43 ha community forest land, and 1.7 ha barren land under VDC ownership. Altogether there are 11.35 ha in the road alignment.
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39. About 72% of the proposed Sanghu-Dobhan road passes through farming area and the rest is forest area (Table 5).
40. The proposed Garma-Nele-Budhidanda road passes through cultivated land, forest area and barren land. There are 8.133 ha of farming areas, 2.18 ha community forest land, and 0.763 ha barren land (Table 5). Most of the cultivated lands are in the Nemar, Tojing, Najing and Jogara settlement area.
Table 5: Land use in the proposed road alignment Barabis- Garma-Nele- Sanghu-Dobhan Road, Item Aatichaur road, Budhidanda Road, Taplejung Bajura Solukhmbu Cultivated land 6.155 7.797 8.133 Forest area 2.430 3.102 2.180 Barren land 2.765 1/ 0 0.736 Total 11.35 10.899 10.673 1/ Public land 1.7 ha and private land 1.065 ha (Thatch grass area – Kharbari)
7. Air Noise and Water Quality
41. There is no data for air, noise and water quality but a general statement is given in the subproject IEE reports. There are no industries and vehicular movement along the road alignment. The air quality observed was good. Likewise, water quality in the proposed road is supposed to be good since it is free from any kind of polluting sources. Streams are sources of drinking water. There is no defecation problem observed around the drinking water sources. However, during the monsoon season the quality of water may be polluted due the accumulation of silt, landslide, gully erosion etc. The proposed subproject areas do not have any sources of noise nuisance.
B. Biological Environment
1. Forest
42. Community and government managed forests, forest vegetation, and non timber forest species in the proposed road alignment area are the major forest types. Forests are primarily used for firewood, fodder and timber. Grazing is not allowed in community managed forests. However, farmers graze their ruminants in government managed forests, which is sometime uncontrolled. Information on forest type, saplings and seedlings of tree species, the shrub and herb species and medicinal and aromatic plants, and their endangered status is not available. Information on community forests in Sangu-Dobhan road alignment is not available.
43. Barabis-Aatichaur Road, Bajura: There are five community forests namely Bedughati, Pani patal, Khirrechauka, Jeulekhmandu and Handikhola CFs and two government managed forests - Sahubada and Guiban forests in the road alignment area. The proposed road would cover a small part of the five community forests covering 0.6 ha and 1.84 ha of government managed forests (Table 4). The main forest species in community forests and government forests are Alnus nepalensis, Macaranga indica, Pyrus pashia, Pinus roxburghii, Prunus cerasoides, Rhododendron arboretum, Quercus lanata. The main NTFP species found along the road alignments are: Thysanolaena maxima (Amliso), Eulaliopsis binata (Babiyo), Cymbopogon microtheca (Khar), and all these are grass species also grown in Kharbari area owned by farmers. Prunus cerasoides and Quercus lanata have fodder values.
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44. Garma-Nele-Budhidanda Road, Solukhmbu: This proposed road passes through Maidel and Mukli community forests covering 2.18 ha (Table 4). The dominant forest and fodder species observed in the road alignment are Rhododendron arboreum (Laligurans), Pinus roxburghii (Khote Salla), Schima wallichii (Chilaune), Lyonia ovalifoila (Angeri), Erythrina stricta (Faledo), Pyrus communis (Naspati) Prunus cerasoides (Paiyu), Aesandra butyracea (Chiuree), Ficus religiosa (Pipal), Alnus nepalensis (Uttis) Rhus javanica (Bhalayo), Juniperus indica (Dhupi), Ficus auriculata (Nimaro). Non timber forest products (NTFPs) are defined as any kind of products derived from forest species other than timber and fuel wood. The main NTFP species found along the road alignments are: Rubia manjith (Majitho), Centella asiatica (Ghodthapre), Swertia chirayita (Chiraito), Gaultheria fragrantissima (Dhasingare), Acorus calamus (Bojo); all these species have medicinal value.
Table 6: Forests in the road alignment area Garma-Nele- Barabis-Aatichaur road, Sanghu-Dobhan Item Budhidanda Road, Bajura Road, Taplejung Solukhmbu Community Bedughati, Pani patal, Not given in the IEE Maidel and Mukli CFs forests Khirrechauka, Jeulekhmandu report and Handikhola CFs Forest area 0.595 ha 2.18 ha Major species Alnus nepalensis, Macaranga Schima wallichii, Alnus nepalensis, Pinus indica, Pyrus pashia, Pinus Alnus nepalensis, roxburghii and roxburghii, Prunus cerasoides, and Pinus Rhododendron arboreum Rhododendron arboretum, and roxburghii Quercus lanata Government Sahubada and Guiban forests None None forests Forest area 1.835 ha Major species Alnus nepalensis, Pyrus pashia, Quercus lanata, and Rhododendron aroboreum Total forest area 2.430 ha 3.102 ha 2.18 ha
45. Sanghu-Dobhan Road, Taplejung: There are community forests in the road alignment. The major forest species are Chilaune (Schima wallichii), Khotesalla (Pinus roxburghii), and Uttis (Alnus nepalensis). Saplings of Alnus nepalensis are colonizing in the old and more or less inactive landslides. Chiraito (Swertia chirayita) and Jhyau (Parmelia spp.) are the major NTFP with medicinal value. Few farmers have planted Alnus nepalensis in upland farming area as cover tree crop to cardamom, a valuable cash crop.
2. Wildlife
46. Barabis-Aatichaur road Bajura: Wildlife and bird species cited in the forests in the road alignment area by local people are mentioned here. Panthera pardus (Leopard), Canis aureus (Jackal), Macaca mulata (Monkey) Muntiacus muntjac (Barking Deer), Naemorhedus goral (Ghoral) are the wildlife species. Among these species Panthera pardus, Macaca mulatta and Canis aureus are listed in CITES. Similarly, birds are Lophura leucomelana (Kalij pheasant), Columba livia (Pigeon), Streptopelia (Dove), Pycnonotus sp. (Jureli), Lophophorus impejanus (Danphe), Streptopella senegalensis (Dhukur), Alectoris chukur (Chyakhura) etc. Lophophorus impejanus is listed in CITES Appendix I.
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47. Garma-Nele-Budhidanda Road, Solukhumbu: Panthera pardus (Leopard), Muntiacus muntjak (Barking deer), Hystix indica (Porcupine), Canis aureus (Jackal), Macaca mulatta (Monkey), Felis chaus (Jungle Cat), Mortes flavigula (Malsapro), Naemorhedus goral (Ghoral) and Selenarctos thibetanus (Bhalu) are the wild animals reported in the forests of proposed road area. Similarly, bird species such as Lophura leucomelana (Kalij pheasant), Alectoris graeca (Chyakhura), Columba livia (Pigeon), Streptopelia senegalensis (Dove), Lophophorus impejanus (Danphe), Aquila heliaca (Eagle), Falco peregrinus (Bajh), Passer domesticus (Sparrow) etc were reported.
48. Sanghu-Dobhan Road, Taplejung: According to the local people, the most commonly available wildlife species around the proposed road alignment are Jackal (Canis aureus), Porcupine (Hystrix indica), Monkey (Macaca mulatta), and Indian fox (Vulpes spp.), langur (Presbytis entellus), Indian hare (Lepus nigricollis), Chital (Axis axis), and Spotted leopard (Panthera pardus). Green pit viper (Trimeresurus albolabris), Mountain pit viper (T. monticola monticola), Stejneger’s pit viper (T. stejnegeri yunnanensis), House gecko (Hemidactylus frentus), Common frog (Rana tigrina), Garden toad (Bufo bufo) and Himalayan toad (Bufo himalayanus) are the reptiles and amphibians found in the project area. The most commonly cited bird species in the forest are Jungle fowl (Gallus gallus). Presence of House crow (Corvus splendens), Rose Ringed Parakeet (Psittacula krameri), Common Maina (Acridotheres tristis), Cuckoo (Cuculus micropterus), Kalij pheasant (Lopura lecomelana), Black-crested Bulbul (Pycnonotus melanicterus), Black Drongo (Dicrurus macrocercus) and Large Pied kingfisher (Ceryle lugubris) were noted during the field visit. Among the fauna present in the forest area, Langur (Presbytis entellus) and Dhwanse Chituwa (Panthera pardus) are listed in CITES Appendix.
C. Socioeconomic Environment
1. Socio-economic and Cultural Resources
49. Barbis-Artichaur Road, Bajura: The households and settlements in the direct influence zone, their ethnicity and main occupation, religion, and cultural resources are described. There are 11 settlements along the direct influence zone in four project VDCs namely Barabis, Kuldevmandu, Gudukhati and Aatichaur with a total population of 9,475 living in 1,822 households. There is no indigenous population but there are few socio-economically disadvantaged people belonging to occupational castes (Damai, Kami, and Sarki), officially known as Dalits in all the settlements. There are temples of local significance and festival sites in Simalkot, Kharekhet, Jhali, Pudababla and Betalmandu settlements located within 500 m of the road alignment.
50. Almost all households except landless is involved in crop farming and livestock. About 70% of the households depend on labour and portering for cash income; very few people are employed (5.9%) and 3.4% are engaged in business and commerce. Seasonal migration to Indian cities and towns after the main crop harvest in November is a common phenomenon; usually they do labour work and earn cash for their subsistence livelihood.
51. Garma-Nele-Budhidanda Road, Solukhumbu: There are 14 settlements in Garma, Nele, Mukli and Deusa VDCs along the ZoI of the proposed road alignment, a total population of 6,222 persons living in 1,225 households. There are diverse ethnic groups such as, Brahmin, Thakuri, Chhetri, Sherpa, Tamang, Gurung, Sunuwar, Rai and occupational castes (Damai, Kami, and Sarki); the Sherpa, Tamang, Gurung, Sunuwar and Rai belong to indigenous group
ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 14 Final Report - Linked Document 8: Initial Environmental Examination however their number is small. The occupational castes – Dalits live in all settlements. There are Hindu temples, Budhist shrines and festival sites in the project settlements.
52. The main occupation of the majority of the people in the road alignment area is agriculture and livestock. About 41% of the households are involved in porter for the trekkers and transportation of goods, about 9% in business and commerce, another 9% are absorbed in various jobs, and few households (1%) are engaged in small-scale cottage industries. A significant number of the economically active male population goes out to other places in Nepal or mid-east and other countries for work. The cash income they generate working as porter or different types of job in other places in Nepal, and remittance play significant role in the livelihood improvement of the people. Just after the main crop harvest in October-November majority of the active population seasonally migrate to Lukla, Namche Bazar, Pokhara and Kathmandu for work; during trekking season they work as porters or do labour work in hotels or restaurants particularly in Lukla and Namche Bazar.
53. Sanghu-Dobhan Road, Taplejung: The proposed alignment of the road sub-project covers 3 VDCs namely Sanghu, Dhungesanghu and Change VDC and the major settlements along road corridor are Sanghu, Patigaun, Koldanda, Telbung, Dhungesanghu, Change, Nesum, Thade, Banjhogara, Tilbari and Dobhan. The population of these three VDCs is 13,061 and 3,200 of them live in the zone of influence of this proposed road. The major composition of ethnic groups comprise of Janajati indigenous community (Limbu, Tamang, Rai and Magar) followed by Bahun and Chhetri. There are Hindu temples and Buddhist shrines in the project settlements but none within the road alignment area.
54. The main occupation of the people is agriculture and livestock. People are also involved in other economic activities like employment as labour, working in government and non government organizations, army, business and cottage industries. The proposed road alignment is the trekking route for Kanchenjunga Conservation Area, and during autumn and spring, the main trekking season, local people get employment and income generating opportunities; they sell woolen handmade goods and farm products, and some of them work as porter, cook or local guide. A significant number of economically active males have migrated to mid-east and other countries for employment.
2. Agriculture and Food Security
55. Barbis-Artichaur Road, Bajura: Land holding size is small; about 4% of the households are landless and about 65% hold less than 0.35 ha each. Maize, wheat, rice, millet and buckwheat are the main cereal crops grown. Potato and some oilseeds are grown as cash crops. There is no irrigation facility and crops are grown as rain-fed. Fruits are grown in some settlements mostly for local consumption. Most families rear cattle, goat, and free-range poultry. Beekeeping is done by few farmers and in Delta settlement few households have reared rabbit. Live animals and livestock products are the major source of cash income.
56. Agriculture has been their main occupation, however only about 11% of the households in the zone of influence produce enough food for the whole year. There is large percentage of households having food deficiency for varied period of time: about 33% produces food lasting for three to nine months, 37% has food for 3 months, and about 19% have food sufficiency for less than three months. Poverty is widespread and over 85% of the households have to earn cash for feeding the family members.
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57. There is good potential for growing vegetables, small-scale poultry farming, and developing orchards in the project settlements. There is market for agriculture products in fast growing growth centres such as Betalmandu, and the road transport could provide access to agriculture products to other towns or market centres. Farmers are growing fruit crops in Simalkot and Pudababla settlements. There is good prospect for bamboo (Nigalo) products; few people in Lamagau settlement are using Nigalo for various products. There could be some prospect for religious and cultural tourism.
58. Garma-Nele-Budhidanda Road, Solukhumbu: Like in any mountainous area, the landholding size is small; about 13% households have less than 0.25 ha each, 35% have 0.25- 0.5 ha each, 18% have 0.5-1.0 ha each, and about 29% own more than 1.0 ha. About 11% households are considered as rich farmers each farming more than 2.5 ha land. About 5% of the households are landless. The main cereal crops grown in the project area are maize, wheat, millet, buckwheat and rice. Potato is the main cash crop and the commonly grown vegetables are chilly, pumpkin, sweet potato. Orange and Junar are the major fruit crops grown in most settlements. Cattle, goat and sheep are commonly reared by most households, while some households rear poultry and pigs and maintain bee-hives, and few households have mules for transport. Live animals and livestock products are the major source of cash income.
59. Food sufficiency situation is far better than in Barbis-Artichaur area in Bajura district. About 39% of the total households produce enough food to meet the year round household need and about 21% of them have surplus to sell in local market. About 43% of the total households produce food lasting for three to nine months, 12% has food for 3 months, and about 6% have food sufficiency for less than three months.
60. There is good prospect for commercialized vegetable and temperate fruit farming, cardamom cultivation, growing medicinal and aromatic plants, and small-scale poultry farms in the project area. Maidel, Chitragupta, Chospu and Bhumisthan settlements could be the vegetable area. Similarly, Bugal area could be developed as tea plantation area. Lokta (Daphne bholua) a naturally growing plant is available around the Nelebazaar area which could be used for making high value paper. The growing and management of this valuable plant should be a component of paper-making initiative. Nature and cultural tourism could be developed in the project area.
61. Sanghu-Dobhan Road, Taplejung: The economy of the project area is predominantly agriculture based and it has high potential for the production of fruits and cash crops such as orange, ginger, cardamom and vegetables. Rice, maize, wheat and millets are the cereal crops grown in the project area, and potato, cardamom and vegetables such as cauliflower, cabbage, pumpkins, beans, etc are grown as cash crops. Few farmers have planted pears, orange and banana. Except cardamoms, all other farm products are sold in local markets. Sanghu, Dhungesanghu, Change and Dobhan are the market centres. Similar to other mountain areas food grain production at household level is not enough to meet the household requirement. However, food sufficiency situation is much better than in Bajura subproject area. About 50% of the total households produce food enough for over 9 months, 25% produce food for 3-9 months, and about 25% households produce food lasting for less than 3 months.
3. Public Services, Infrastructures and other Facilities
62. Barbis-Artichaur Road, Bajura: There are three sub-health posts in Barabis, Gudukhati and Aatichaur VDCs and one health post in Kuldevmandu VDC. There are good educational facilities - altogether there are 13 schools, from primary level to levels 10+2. Primary school has
ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 16 Final Report - Linked Document 8: Initial Environmental Examination been established in all settlements. There are 35 water mills for grinding cereals. There are community water taps sourced to springs and streams. Five suspension bridges are located in Simalkot, Jhali, Tunisen, Banegau and Lamagau settlements and three wooden bridges are in Betalmandu and Lamgaun settlements.
63. There is no electricity supply through national grid. However, solar system is used for lighting purpose; altogether 201 households have installed a solar system in the project settlements, each house in Betalmandu Bazar has a solar panel. There is one post office in Betalmandu of Barabis VDC. The other community infrastructures and facilities include two playgrounds, one community centre and eight Ghats – cremation sites. There are 20 community organizations. There are three saving and credit cooperatives in Betalmandu, Kharekhet and Sahubada settlements. Altogether nine weaving industries are found along the road alignment in Pudababla and Sahubada settlements.
64. There are two market places in the project area. Betalmandu, the entry point to Barbis – Aatichaur Road is a fast growing growth centre established about years ago when Sanfe Bagar – Martadi track was opened. Business entrepreneurs have built temporary corrugated iron sheet houses for shops and restaurants. There are about 85 such shops/houses and each house has installed a solar panel for light. A bus stand has also been constructed. There are about 15-16 restaurants and teashops. Within the zone of influence of the proposed projects, there are 76 teashops, 51 grocery shops and few other shops.
65. Garma-Nele-Budhidanda Road, Solukhumbu: There are 14 educational institutions including four High Schools and campuses in the project VDCs. A primary school is established in almost all settlements. There are five health posts in Nemar, Nelebazaar, Budhidanda and Chitragupta settlements. Drinking water supply facility is available in 10 out of 14 settlements. The water supply schemes use spring or stream sources and 679 community taps are installed. Irrigation facility is developed in two settlements covering 13.6 ha of land. There are eight Ghats -cremation sites located in Garma and Mukli VDCs.
66. The other infrastructures include 22 micro-hydro plants providing electricity to nine settlements and additionally 81 households have installed solar panel in these settlements. Nine traditional water mills for grinding cereals are operating in all the four project VDCs. Local entrepreneurs in Nemar and Mathillo Garma have installed diesel mill for grinding grains. There is one suspension bridge in Sekarsing and 18 wooden bridges in 9 settlement areas.
67. Community development facilities are established by local people as well as by national and international organizations; these facilities include Red Cross office, social welfare trust, club, community mobilization centres, farmers group, women group, community forestry user group, and community organizations.
68. There are altogether sixteen cottage industries along the road alignment; these small- scale industries weave carpet and make gloves, caps and bags using sheep's wool. Tojing, Bugal, Sakarsing, Nelebazaar and Bhudhidanda are the market centres, and in the project area there are 11 hotels and 75 tea stalls and restaurants.
69. Sanghu-Dobhan Road, Taplejung: In general, Taplejung district received exposure to educational services relatively early than Solukhumbu and Bajura districts. There are 17 primary schools, 3 lower secondary schools and two high schools in the zone of influence of the project area. Health posts in Sanghu, Dhungesanghu and Change VDCs provide health service to the people in project settlements along the road alignment. Common fever, respiratory disease,
ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 17 Final Report - Linked Document 8: Initial Environmental Examination diarrhea and worms infection are the major ailments among the local people. People drink untreated water which aggravates water-borne diseases. General sanitary condition is not good, although better than in Bajura subproject area; not all the households have toilet facility in their homes. There are farmers-managed irrigation systems which are sourced to streams. Drinking water system is less developed although there is abundant availability of water. Most of the people depend on traditional source for drinking water such as aquifers, springs and stone spouts.
70. Though the area is not connected by national grid for electricity supply, there is a micro hydropower plant in Sanghu that provides electricity to 300 houses in Sanghu and Dhungesanghu VDCs. Solar energy is gaining popularity in project area. About 125 households in the three project VDCs have installed solar panel for lighting. Porters and pack animals transport goods in the project area from the nearest market. There is one Ilaka post office in Sanghu VDC, and the telephone service is available at Sanghu, Change and Dobhan. The CDMA telephones provide good services to local people in project area.
71. Agriculture service centre and livestock service centre in Sanghu Bazar provide service to farmers in the project area. The community based organizations include women saving and credit groups formed in Sanghu, Change and Dobhan settlements. Community centres are developed in most settlements. Agriculture and forest based small-scale cottage industries are established in some settlements.
V. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES
A. Environmental Impacts (Construction and Operation Phase)
72. Since the subprojects focus on existing foot trails, or small existing agricultural roads, the new project interventions will unlikely produce significant long-term detrimental environmental impacts. The major activities associated with the road construction are clearing forest and farm vegetation, earthwork excavation, limited blasting, disposal of spoils, and quarrying for construction materials in mountainous region which already face physical and biological environmental degradation. The potential challenging environmental problems and issues during the construction phase include: (i) change in land use, (ii) soil erosion, silt runoff and slope instability, (iii) road drainage blockage/congestion causing soil erosion and landslide, (iv) air, noise and water pollution, (v) contamination of surface water, (vi) loss of forest area and forest vegetation, (vii) disturbances to wildlife and birds movement, (viii) loss of agricultural land and farm vegetation, (ix) long-term loss of food grain production in food deficit area, (x) loss of private properties, (xi) community disharmony and ethno-cultural problems, and (xii) hygiene, sanitation and safety of construction workers. The major issues during operation phase include (i) road drainage blockage/congestion, (ii) slope instability and erosion/landslide, (iii) loss of forest trees due to easy access, (iv) disturbance to wildlife movement, (v) road accidents, and (vi) increased pressure on natural resources due to market centre and new settlement development.
73. The road may even provide possible physical, biological and socio-economic environmental benefits, such as by stabilization of potential landslip areas and improved drainage, soil erosion control, forest plantation and management of community managed forests, employment opportunities, enhanced community services, etc. Road construction is based on the labour-based, environment-friendly and participatory approach (LEP) with key features of cut and fill and reuse of excavated materials as construction materials and use of
ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 18 Final Report - Linked Document 8: Initial Environmental Examination bio-engineering techniques for slope protection, and adoption of this approach could reduce the magnitude of physical impacts.
74. Beneficial impacts and potential adverse impacts due to the implementation of the proposed subprojects on physical, biological and socioeconomic and cultural environments during construction and operation phase are described here. Projects impacts are summarized in Table 5.
1. Beneficial Impacts
a. Construction Phase
75. Employment Opportunity: implementation of the proposed subprojects will generate employment to the local people through involving them in road construction; the local people will form Building Groups and work for the project or work for the contractors. The road construction will provide 309,868 person days for unskilled labour and 9,486 person days for skilled labour in the Barbi-Artichaur road area which is equivalent to 105 skilled and 3,443 unskilled persons getting employment for 90 days.
76. The Garma-Nele-Budhidanda road, Solukhumbu will create 408,250 unskilled and 18,150 skilled person days work to the local people in the project area.
77. The Sanghu-Dobhan road in Taplejung will generate 335,356 person days work for unskilled labours and 22650 person days work for skilled persons.
78. Emphasis will be given to socio-economically disadvantaged community and women. Altogether 11,705 unskilled persons and 558 skilled persons will get employed in road construction for 90 days in the three proposed subprojects. This could substantially increase their income and stop them migrating to India during off season for manual work at least during construction phase.
79. Benefit augmentation measures will be implemented through the Building Groups (BGs), people involved in road construction will be members of a BG and they will be given practical training to do the job. Project will also provide skill training for income generation activities to interested BG members for improving their livelihood. It is anticipated that the skill training programme would generate multiplier effect in the local economy and support significantly to uplift the socio-economic condition of the local people. This will enhance the technical skills of local people. The skill and knowledge acquired from the project during construction will enhance their employment opportunities in other areas.
80. Enterprise development and business promotion: business enterprises will develop in the road alignment area, local and outside people may operate a number of small shops and tea shops/restaurants in strategic locations along the road. The workforce involved in road construction will generate demand for food, beverage and other daily necessary items. This will increase local trade and business in the area. Betalmandu in Bajura, and Change and Dobhan in Taplejung could be developed as market centres. Project will provide support to local entrepreneurs, promote cooperatives, and develop linkage with bank and other financial institutions.
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b. Operation Phase
81. During the operation phase, the road will trigger development of growth centres and rural markets. There is a possibility of increased economic opportunities and significant growth and extension of local markets along the road; Betalmandu, Simalkot, Kharekhet, Jhali, Pudababla, Tunisen, Banegau, Delta, Sahubada, Guiban, and Lamgaun in Bajura, Garma, Nele, Mukli and Deusa in Solukhumbu, and Change and Dobhan in Taplejung could be developed as rural market centres. Sewerage and other basic facilities will be supported in the market centers.
82. Local people in the project VDCs would have improved access to agricultural inputs such as seeds, chemical fertilizer and technology, and local markets and transport facility for farm products which could encourage farmers to increase farm production and income through diversifying and commercializing agriculture. Farmers could fetch a good price for their farm products through increased market linkages and networking. Agriculture and livestock support services in the project area will be improved and facilitated to provide technical services to farmers.
83. Due to increase in employment opportunities, trade, business, and agricultural income, considerable amount of money may be channeled into the local economy in the area. This will increase the income level of the individual household and the local community and they could spend more on health and sanitation and children’s education. The level of the community development activities such as education, school, health and sanitation services would increase. The project will help to enhance this beneficial impact by generating awareness to the people about the ways of enhancing community development activities. Likewise, project will also support to promote linkage of social infrastructure services.
84. Road access is likely to promote tourism activity in the project area. Barabis, Aatichaur Kuldevmandu, and Gudukhati VDCs in Bajura project and Jorbouddha, Najin, Tojin, Tumsedanda, Nelebazaar, Maidel, Mukli and Bhudhidanda in Solukhumbu have good potential for religious and cultural tourism. The construction of road will increase trekking access to Solukhumbu area and Kanchenjunga Conservation Area in Taplejung district. Flow of tourists will contribute to the socioeconomic development of the area. Project will facilitate awareness raising programme in collaboration with the concerned stakeholders to support the promotion of tourism activity.
85. Road access and socioeconomic development opportunity would empower women and marginalised and disadvantaged community and in the project VDCs. They will have a better access to health and education facilities as well as to financial institutions in the project area. Their awareness to improvement would substantially enhance.
86. Land values along the road and near the market centres would largely increase. Landowners within the road corridors benefit greatly. Similarly, the land price of the agricultural land located in the zone of influence will also increase due to improved transport facility for farm products. It will also have some adverse impacts such as loss of productive farmland along the road and a possible encroachment of ROW as observed in other road project area.
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2. Adverse Impacts
a. Physical Environment
i. Land Use and Land Cover
87. Road construction will change 7.22 ha of farming areas including 1.07 ha thatch-grass, 2.43 ha community forest land and 1.7 ha barren land which are under VDC ownership in Barbis-Artichaur road, Bajura; 8.13 ha cultivated land, 2.18 ha forest land and 0.74 ha barren land in Garma-Nele-Budhidanda, Solukhumbu; and 7.8 ha farm land and 3.1 ha forest land into built-up areas. This land cover change will permanently reduce farm crop production, thatch grass, fodder and forage for livestock, firewood for household, and timber and NTFP. No adverse impacts are anticipated during the operation phase.
ii. Land Degradation, Erosion and Landslides
Construction Phase 88. The following adverse impacts due to removal of natural vegetation, open cuts, spoil disposal, quarrying and disruption of drainage are identified:
i. Clear felling and removal of vegetation, and open cuts with exposed soils to heavy rain will aggravate soil erosion and landslides in the road corridor. There are active landslides and erosion prone areas in the road alignment at Jahli, Sahubada and Guban in Barbis-Artichaur road, slumps and landslides at three places in Garma- Nele-Budhidanda road alignment area, and gullies and sheet erosion area (shallow seated new and old landslide, deep seated old landslide, small-scale slope failure and rock slide) in Sanghu-Dobhan road. The degree of sliding increases during the road excavation and it may cause regular sliding during operational phase.
ii. Fresh cuts whenever is required, invites landslides and erosion during the monsoon. Inappropriate disposal of spoils could cause gulling and erosion of spoil tips when combined with unmanaged surface water runoff, damage farm lands, and destroy agricultural or forest vegetation and properties at downhill.
iii. The potential adverse impacts of quarrying are accelerated erosion, landslides, disturbance in natural drainage pattern, and water logging and water pollution.
iv. The concentrated water from the road outlet could cause erosion and landslides affecting the stability of the road. The concentrated water discharged from side and cross drain can cause potential adverse impacts to existing area by accelerating erosion.
v. Landscape degradation due to poorly designed and monitored quarry operations and indiscriminate dumping of spoil material.
Operation Phase 89. The inadequate road maintenance particularly road drainage can trigger slides and slope failure. Again, human induced activities such as quarrying stones or soil, tree felling, etc. may cause damage to the road section in vulnerable sites. There may be regular sliding during the operational phase.
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iii. Air, Noise and Water Pollution
90. The following impacts on air, noise and water quality are anticipated during the construction phase:
i. Intense dust emission along the construction site, affecting the health of workers and people living in nearby areas as well as vegetation. However, heavy equipment and vehicles are not used in LEP approach which will lower dust pollution. ii. There could be a slight increase in noise level at specific sites. iii. There will be no water pollution from oil, grease and fuel spills as heavy machines are not used. Water pollution will be limited to human source such as defecation along the road and disposal of excavated materials in the water bodies.
91. During the operation phase, air pollution will be increased by vehicular emission and dust from earthen road. This will affect the people living close to the roadside. There could be noise pollution. Runoff from the earthen road may increase sediment load on slopes, damaging farmlands.
b. Biological Environment
i. Forest Vegetation
Construction Phase 92. Construction of the proposed road will directly affect 2.43 ha of two government-managed and five community-managed forests in Barbi-Artichaur road; 2.18 ha of community forest in Garma-Nele-Budhidanda road; and 3.1 ha in Sanghu-Dobhan road. The following impacts are identified:
i. A total of 5,609 trees will be removed from government- and community-managed forests and 6,496 trees including 9 bamboo culms from private land in the road alignment of the three proposed road subprojects. ii. Ground vegetation, e.g., shrubs and herbs will be lost from 7.7 ha of forest land.
Operation Phase 93. Ineffective road drainage system in the forest area may damage the forest vegetation on downward slopes. The development of growth centres and shops/residential houses may exert pressure on nearby forests for firewood and timber. Access facility may accelerate the rate of illegal felling of trees.
ii. Wildlife and Birds
Construction Phase 94. The movement of labor, use of construction equipments, and noise during construction will affect the wildlife and birds. Road construction could disturb the movement of wildlife and birds along the road corridor. Road construction in the forest area will fragment the natural habitat by disturbing the movement and breeding activities of the wildlife. Forest clearing could also affect the birds nesting. Illegal hunting, poaching and smuggling of wildlife are anticipated.
Operation Phase 95. Vehicular movement could disturb wildlife population and its movement. There could be illegal hunting and poaching by the people from market areas and visitors.
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c. Socio-economic and Cultural Environment
i. Agriculture
96. During construction, the impacts on agriculture are basically due to land take for road construction. The following impacts are identified:
i. Farmers will permanently lose 6.155 ha of cultivated land and 1.065 ha of thatch grass areas where they grow trees, grasses in Barbis-Artichaur road, 8.133 ha in Garma-Nele-Budhidanda road, and 7.797 ha in Sanghu-Dobhan road. ii. There will be annual loss of food grains and other crops from 22.1 ha of cultivated land in food deficit subproject areas. The total loss of food grains and other crops is not worked out; data and information on crop yields were not collected. iii. Moreover, spoils on farm land will also affect the production of farm crops, and consequently, it will affect the livelihood of the households residing near the road alignment. iv. Altogether 277 households will be affected due to road construction in Barbis- Artichaur road; they will lose part of their farmland, residential and other structures.
ii. Community Infrastructure
97. Road construction will affect the drinking water pipe, the drinking water system and electric pole in Barbise-Artichaur road; drinking water pipeline, drinking water supply tank, drinking water tap, a natural well, a cattleshed, and a Buddhist shrine – Mane, in Garma-Nele- Budhidanda road; and irrigation canal in three places, and two community taps in Sanghu- Dobhan road.
iii. Occupational Health and Safety
98. During construction, the following impacts related to occupational health and road safety are identified:
i. During road construction, workers will be exposed to various risks and hazards. There could be chances of acute respiratory infection and eye related diseases due to dust. ii. There could be risk of work related accidents. iii. There could be dumping of wastes on roadside and drainage which could pollute water and trigger water-borne diseases. iv. Workers of contractors may be kept in labour camps without proper space, water, air and sanitation facilities. 99. During operation phase, there could be road accidents.
iv. Cultural and Religious Aspects
100. There are no temples or places of worship in the road alignment and thus there is no adverse impact due to road construction.
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v. Ribbon Settlement Development
101. People would make teashops/houses along the road once the track is opened. Once the road construction is completed and it becomes operational, the market/growth centres would expand and people would more likely encroach the right-of-way (ROW). This will reduce road capacity and increase chances of road accidents.
B. Mitigation Measures (Construction and Operation Phases)
1. Benefit Augmentation
a. Construction Phase
102. As part of the benefit augmentation measures, local people involved in road construction will be given practical training to do the job, and project will provide skill training for income generation activities to interested BG members for improving their livelihood and it will provide support to local entrepreneurs, promote cooperatives, and develop linkage with bank and other financial institutions for the benefit of local community in the project area.
b. Operation Phase
103. In the project area, the project will provide support for developing sewerage and other basic facilities in the market centres, agriculture and livestock support services will be improved and facilitated to provide technical services to farmers, provide support to promote linkage of social infrastructure services and market centers, and facilitate awareness raising programme with the concerned stakeholders to support the promotion of tourism activity.
2. Mitigation Measures
104. The proposed mitigation measures are summarized in Table 5. These measures will minimise and mitigate adverse impacts and enhance positive impacts. The benefit augmentation measures are geared towards enhancing positive impacts. During the construction phase, costs for mitigation measures are included.
105. The ADB Safeguard Policy Statement (2009) requires any ADB funded activity to consider the following in developing mitigation measures:
i. Avoid, and where avoidance is not possible, minimize, mitigate, and/or offset adverse impacts and enhance positive impacts by means of environmental planning and management. ii. Apply pollution prevention and control technologies and practices consistent with international good practices. Details on environmental health and safety measures are to be worked out. iii. Provide workers with safe and healthy working conditions and prevent accidents, injuries, and disease. Establish preventive and emergency preparedness and response measures to avoid, and where avoidance is not possible, to minimize, adverse impacts and risks to the health and safety of local communities.
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a. Physical Environment i. Land Use and Land Cover
106. Mitigation measures include plantation of trees and shrubs along the road side, management of spoil areas and quarry sites, and adoption of protective measures to control soil erosion in ROW and the further loss of land in the road corridor during construction and operation phase.
ii. Land Degradation, Erosion and Landslides
Construction Phase 107. The DDC/DTO will ensure that the proposed road construction adopts LEP and green road approach. Adequate slope stabilization measures will be provisioned in design. The following mitigation measures will be adopted during the construction and rehabilitation of the proposed road (project cost includes the mitigation cost):
i. Ensure minimum cut slope, selecting cut and fill slope at correct angle depending upon the soil type; ii. Re-vegetate cut and fill slope or exposed areas as soon as possible by using native plant species, adoption of bio-engineering techniques; and iii. Ensuring minimum damage of vegetation during construction and no construction work during rainy season particularly in erosion and landslide prone areas.
108. Spoil disposal has been observed as one of the major environmental issues in rural road projects. Spoils will be safely disposed and managed with minimum environmental damage using LEP approach which includes balanced cut and fill volume, re-use of excavated materials and minimum quantity of earth works. Mitigation cost is included in the project cost. The following mitigation measures will be adopted:
i. Wherever possible, surplus spoil will be used to fill eroded gullies, quarries and depressed areas. Use the excavated materials for reclaiming the degraded land in the close vicinity of the road in consultation with local communities. Eighteen spoil disposal sites have been suggested. DPO and DISC should ensure that spoils are disposed off in proper sites; ii. Utilize as much of the excavated material from rock cuttings along the alignment to minimize the need of quarrying; iii. The tipping sites will be covered by vegetation with proper drainage and adequate protection against erosion, provision of toe-walls and retaining walls; use of bio-engineering techniques; iv. Spoils will not be disposed on fragile slopes, farmland, marshy land, forest areas, natural drainage path, canals and other infrastructures; and v. Adequate environmental protection training during work execution will be provided to the Building Groups, particularly the group leader (Naike). 109. The potential adverse impacts of quarrying are accelerated erosion, landslides, disturbance in natural drainage patterns, water logging and water pollution. Appropriate planning for quarrying and borrowing of materials will be made during construction. Unstable sites, erosion prone area, dense forest area, settlements, fertile farm land will be avoided for
ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 25 Final Report - Linked Document 8: Initial Environmental Examination quarrying operation, and after the extraction is completed, the quarry site will be rehabilitated to suit the local landscape.
110. The concentrated water discharged from side and cross drain causes erosion and landslide which eventually affect the stability of the road itself. It also damages farmland, forest and other private properties. The following mitigation measures are recommended (project cost includes the mitigation cost):
i. Adequate numbers of drainage structures will be provided in order to have minimum interference on natural drainage pattern of the area; no diversion of water away from natural water course unless it is absolutely necessary ii. Drain water discharge into farmland or risky locations will be avoided. iii. Restoration/reinstating of all disturbed infrastructures in consultation with local beneficiaries without compromising their use iv. Coordination with concerned local authorities like District Drinking Water Supply Office, Irrigation Office, and water users groups for the maintenance of disturbed infrastructure. Table 7: Potential impacts and proposed mitigation measures Area of Construction phase Operation phase impacts Benefit Ensure involvement of women, Dalits and Promotion of land development Augmentation ethnic minority and poor people in BGs activities Training on road construction and income Provide support for developing generation activities sewerage and other basic facilities Provide support to local entrepreneurs, in the market centres promotion of cooperatives and linkage with Improvement in agriculture and financial institutions livestock support services Promoting linkage of social infrastructure services Promotion of tourism activity through stakeholders Physical Environment Land Use and Plantation of trees along roadside None Land cover Protective measures to control loss of land due to erosion and landslides Land Strictly follow LEP approach, ensure Regular road maintenance Degradation, minimum cut slope and select cut and fill including slope protection and Erosion and slope at correct angle drainage works. Landslides Revegetation of cut and fill slope or exposed Immediately clear minor landslides areas; adoption of bioengineering techniques and mass wasting and restore Ensure minimum damage of vegetation and slope with appropriate no construction during rainy season bioengineering works Use surplus spoils to fill eroded gullies, Promote soil conservation in ROW quarries and depressed areas and in vulnerable areas beyond the Dispose excess spoils in specified tipping road alignment sites – 6 spoil disposal sites are identified; cover such sites with vegetation and use of bioengineering techniques Provide proper and adequate drainage and adequate protection against erosion; toe walls and retaining walls Avoid drain water discharge in to farmland or high risk area. Restrict diversion of waterway
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Area of Construction phase Operation phase impacts from natural water course Restrict disposal of spoils on fragile slopes, farmland, forest areas, natural drainage path, canals, and other infrastructures. Rehabilitate quarry site to suit the local landscape Restoration/reinstating all disturbed infrastructures Coordinate with concerned line agencies, and water user groups, forest user groups etc for the maintenance of disturbed infrastructures. Mitigation cost has been included in the project cost Air, Noise and Provide face masks to workers for minimising Organise community and road user Water Pollution health hazards due to dust pollution awareness programme to enhance Provide air muffles to workers during rock public understanding breaking and quarrying Plantation near the settlements Avoid disposal of excavated materials in the Restrict use of horns in forest and water bodies settlement area Biological Environment Forest Establishment and operation of CF nurseries; Support CFUGs to conserve and Vegetation 3 in Solukhumbu, 2 in Bajura and 1 in manage their community forests Taplejung subproject area; production of Awareness programme to local seedlings from the second year of nursery community on forest conservation; establishment. encourage and support the Compensatory plantation of 234, 176 community fro controlling illegal seedlings in community forests and forest harvesting government managed forests: 147,670 Promote installation of improved seedlings in Solukhumbu, 72, 478 seedlings stoves in growth centres and in Bajura and 14,028 seedlings in Taplejung residential houses which could subproject area. reduce firewood use and increase Promotion of agro-forestry, NTFP and its efficiency medicinal and aromatic plants in the project Plant trees on both sides of road in area. their ROW. Wildlife and Manage construction work in such a way that Provision of signboards at wildlife Birds it does not disturb movement of wildlife and crossing points birds; identify potential areas for wildlife Restrict horns in forests crossing and regulate such sites Restrict wildlife harassment by workers Coordinate with forest user groups to control illegal hunting and poaching Launch wildlife conservation awareness programme for workers and local community Socio-economic and Cultural Environment Agriculture and Compensation for the loss of farmland, Improve agricultural support Private standing trees and other structures will be services properties provided to the affected people A separate Resettlement Plan has been prepared to address land acquisition and compensation issues Implementation of ‘Food grain production programme’ in the project area
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Area of Construction phase Operation phase impacts Implementation of commercialised vegetable and fruit farming, small-scale poultry keeping and bee-keeping in agriculture pocket areas Strengthen agriculture and livestock support services in the project area Community Restore/reinstate drinking water pipe and None required Infrastructure electric pole; beneficiary groups will be consulted during reconstruction works. Occupational Provide helmets, masks, ear muffles to Provision of safety signs along the Health and workers in health hazard area road; this will be done at the end of Safety Provide drinking water facility and temporary the road construction. pit latrine for workers Provide the First Aid and health facilities to workers Make provision for group accidental insurance to all workers First aid training and orientation to field staff Ribbon Awareness raising programme through local Support sewerage, drainage and Settlement organisation to plan proper settlements other facilities in market centres Development Promote market linkages and networking for better markets Promote land development activities and check encroachment within ROW Regulate settlement growth with proper planning along ROW Tree plantation along the road in market centres
Operation Phase 111. During operation phase the major environmental issues will be slope failure and landslides and blockage of road drains. Quarrying along the road could cause great damage to road. The following mitigation measures will be implemented by the project through DDC and budget will be allocated for this purpose:
i. Regular road maintenance including slope protection and drainage works. ii. Immediately clear minor landslides and mass wasting and restore slope with appropriate bioengineering works iii. Promote soil conservation in ROW and in vulnerable areas beyond the road alignment iv. Prohibit slate mining and other types of quarrying along the road slopes.
112. The subproject IEE Reports did not indicated if such costs are included in the subproject total cost. The local community cannot afford maintenance work, and the DDC may not do maintenance work such as soil conservation, slope protection and drainage works, if cost incurred is not included in the project design.
iii. Air, Noise and Water Pollution
113. Dust pollution, increased level of noise and water pollution will be inevitable during construction phase. The mitigation measures include: use of face mask by the workers to
ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 28 Final Report - Linked Document 8: Initial Environmental Examination minimize air pollution due to dust generation and use of ear muffles to lessen noise pollution during rock breaking and quarrying. Disposal of excavated materials in the water bodies will be avoided. N any mitigation is required during operation phase.
b. Biological Environment
i. Forest Vegetation
Construction Phase 114. Altogether 5,609 trees will be removed from the three proposed subprojects in Bajura, Solukumbu and Taplejung districts. As per the forest rules and Working Procedures for the Use of Forest Land to Other Provisions (2007) 25 trees need to be raised for the loss of each tree in the infrastructure development project area. In general, the survival rate of planted seedlings in natural environment is about 60% which indicate that 234,176 seedlings are to be planted in community forests and government managed forests (about 120 ha) as compensatory measure; 72,478 seedlings in Barbise-Artichaur road area, 147,670 seedlings in Gama-Nele-Budhidanda road area, and 14, 028 seedlings in Sanghu-Dobhan area (Table 6). This would require establishment of forest nursery, provision of seeds and planting materials, training to nurseryman from CFUG and nursery management. Again plantation of large number of seedlings could be a big challenge for the local community/CFUG as well as for the District Forest Office in mountainous region; they have not done it before. The following activities are proposed:
i. Obtain forest clearance approval from the DFO; follow the government procedures such as counting the number of trees to be felled, measuring wood quantity etc; ii. When alignment passes through forest area, site clearance for construction will be limited to the minimum width. No tree or vegetation shall be cut unless absolutely necessary; iii. Management of felled trees: project will make provision of Rs 55 for each tree felled as management cost given to forest /DFO and private owners. Altogether 12,105 trees (5,609 trees from CF and GON managed forests and 6,496 trees from private land) will be felled; iv. Nursery operation: project will provide initial financial support and technical support for establishing 6 Community Forest nurseries in the project area (Table 6). At least 3 persons from each nursery will be given practical training in nursery management. Such nurseries will be established in the first year of the project implementation and start seedling production from the second year. Seedlings of native species similar to the species of trees felled will be raised in the nursery. These nurseries will also produce saplings of fruit trees and vegetable seedlings; v. Forest plantation will begin in the second year of project implementation. DPO and DISC will make arrangements with CFUG for plantation work. The environmental specialist at DDC will provide the technical guidance and the natural resource management assistant at the field will be particularly responsible for forest plantation. Farmers losing trees will be encouraged to plant seedlings, at least 3-4 seeds for each tree lost; vi. Project will make provision for protection and management of planted seedlings for five years and the budget should be allocated for this purpose;
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vii. Awareness programmes will be organized to educate local people on the importance of rare and endangered plant species and conservation practices; and viii. The proponent shall provide counseling services for the promotion of agro- forestry, NTFPs and medicinal and aromatic plants in community forests as well as in private lands. ix. Additional trees will be planted in both the sides of the subproject roads in ROW. 115. The forest plantation would cost Rs 11.71 million.
Table 8: Compensatory plantation in subproject areas No. of trees No. of Nursery Trees to be Subproject to be felled seedlings to Cost (NRs) require- raised 1/ from forests be planted 2/ ment Barbis-Artichaur 1,736 43,400 72,478 3,623,900 2 Road, Bajura Garma-Nele- 3,537 88,425 147,670 7,383,500 3 Budhidanda Road Sanghu-Dobhan, 336 8,400 14,028 701,400 1 taplejung Total 5,609 (7.71 140,225 234,176 11,708,800 ha) (117 ha) 1/ As per the Ministry of Forestry and Soil Conservation, project should grow 25 trees for each tree felled 2/ considering 60% survival rate of seedlings planted. Planted at the rate of 2,000 seedlings/ha Cost: Rs 50/seedling including seedling cost, planting area preparation and composting, transportation and planting. This does not include management work. Establishment of nursery in community forest (CF) with water management, training to CF nursery man, seed materials and other materials would cost Rs 55,000/nursery. Management of felled trees: Rs 55/tree to the CF
Operation Phase 116. The major environmental issues will be management of planted seedlings in government forests which are not managed properly, high seedling mortality in planted areas, and pressure on forests for timber and firewood. The following mitigation measures are recommended:
i. CFUGs will be supported to conserve and manage their CFs according to operational plans; ii. Promotion of the installation of improved stoves to minimize the consumption of fire wood; iii. Encourage and support local community for controlling illegal harvesting of forest resources; iv. Seedling plantation in high mortality forest plantation area; and v. Awareness programme to educate local people on the conservation of forest.
ii. Wildlife and Birds
117. The road construction activities will disturb the wildlife and bird movement in the project area. The following mitigation measures will be implemented:
i. The construction activities near forest area will be appropriately managed so that there will be least disturbance to the wildlife and birds. Workers will be made
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aware not to harass the wildlife or get involved in illegal hunting and poaching or illegal wildlife trading; ii. Coordination with DFO and CFUGs to control the activities like illegal hunting and poaching by enforcing acts and regulations strictly. iii. The project will launch wildlife conservation awareness programme in the project area; iv. Restriction to road construction work during night time
118. The major issues during the operation phase will be disturbance to wildlife movement in forest area due to vehicular flow blowing horns as well as occasional hunting and poaching. Provision of signboards at wildlife crossing points and restricting blowing horns in forests areas are recommended. Budget will be allotted for signboards.
c. Socio-economic and Cultural Environment
i. Agriculture
Construction Phase 119. The three subprojects will cause permanent loss of 22.1 ha of cultivated land and the loss of food grains and other farm products for long-term period. Households in the three subproject areas face acute shortage of food grains. The following compensatory measures will be implemented:
i. Compensation for the loss of farmland, standing fruit trees and other structures will be provided to the affected people. A separate Resettlement Plan has been prepared to address land acquisition and compensation issues ii. Compensation for the loss of cultivated land is not enough. Provision should be made for implementing ‘food grain production programme’ to compensate the long-term annual loss of food grains from 23 ha of cultivated land producing about 12 mt cereal grains/ha/year. The project area in Bajura is food deficit and so are Solukhumbu and Taplejung. With better seeds and improved agronomic practices including irrigation, cereal grain yield could be increased by 0.75 – 1.0 mt/ha which indicates that food grain production programme has to be implemented covering about 30-35 ha of the remaining cultivated land to compensate the grain loss from 23 ha. The Intensive Food Grain Production programme will be developed and implemented covering about 35 ha of farmland. It will slightly add up the project cost. iii. Project will develop and implement commercial vegetable and fruit farming, small-scale poultry rearing, bee-keeping in agriculture pockets. iv. Project will promote organic farming in the project area v. Strengthen agriculture and livestock service centres in the project area.
Operation Phase 120. The intensive food production programme and the commercialised agriculture programme would be continued. Project will continue funding these initiatives.
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ii. Community Infrastructure
121. The road construction will affect community infrastructures such as drinking water system and irrigation canal. Mitigation measures include relocation and reconstruction of affected community infrastructures. The beneficiary groups and the local community will be consulted and efforts will be made to participate them in reconstruction works.
iii. Occupational Health and Safety
Construction Phase 122. During road construction, workers will be exposed to various risks and hazards. Potential impacts to health are respiratory infection and eye diseases due to exposure to dust, also risk of accident during work. The following mitigation measures will be implemented:
The workers will be provided with helmets, masks, muffles depending on the nature of the construction work; Drinking water facility and temporary pit latrine will be established at construction sites to control open defecation and pollution of water bodies by the workers; Workers will be provided with first aid and health facilities. The First Aid training will be provided to field staffs like sub-engineer, social mobilizers and supervisors; and Group accidental insurance will be done for the workers.
Operation Phase 123. Provision of safety signs along the road; this will be done at the end of the road construction.
iv. Ribbon Settlement Development
Construction Phase 124. There could be haphazard development of settlements and market centres along the road and currently there is no mechanism at VDC or DDC level to control haphazard settlement. Project will assist the concerned VDC and DDC to prepare salient features of settlement development and expansion of existing market centres along the road, which will include basic facilities such as drainage and sewerage, footpaths, bus parking area, regulatory mechanism and an organisation to manage the market centre etc, and it will promote awareness programme through local organisation to plan proper settlements and market centres.
Operation Phase 125. Expansion of settlement area and development of market centers along the road are very much expected. This may trigger the practice of encroaching ROW, reduce road capacity and increase road accidents. Project will support development of sewerage, drainage and other facilities in market centers, promote market linkages and networking for better markets and land development activities, regulate settlement growth, check encroachment within ROW, and assist tree plantation along the road in market centre.
VI. ANALYSIS OF ALTERNATIVES
126. The various alternatives to achieve the project objectives with minimum environmental degradation are discussed. The people living in mountainous region require an efficient and safe mode of transportation for access to the market and other service centers. At the same
ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 32 Final Report - Linked Document 8: Initial Environmental Examination time, there is need to conserve the physical, biological and socio-economic and cultural environment. Different modes of transport facility are discussed and considering the other project alternatives such as ropeway, the proposed road project can be the best option.
127. The DDC started constructing Barbise-Artichaur road and a 5-km track was opened. DDC consider this route as a better option and proposed this road. The proposed Garma-Nele- Budhidanda road alignment does not pass through the major landslides as well as the steep slopes and has less forest area than other route option. Alternative routes to the proposed Sanghu-Dobhan road were not assessed in terms of technical, environmental, financial and social aspects. It was considered as the shortest route.
128. Green road approach which is labour-based environment-friendly and participatory (LEP) was considered a better road design and construction method in the delicate mountainous region with a high level of poverty than the conventional method using heavy machines and equipments, explosive and heavy concrete structures. Under LEP approach, construction work is done manually from the local labor without using heavy machinery and explosives, spoil disposal is balanced with cutting and filling, simple dry stone walls and stone causeways are used, vegetation cover is protected and preserved, and use of explosive is strictly prohibited.
VII. INFORMATION DISCLOSURE, CONSULTATION AND PARTICIPATION
129. In the IEE studies of the three proposed subprojects, the IEE teams carried out consultations with local communities and related stakeholders during the field surveys to scope out any public concerns and encourage suggestions for subproject design. A 15-days public notice was published in a national daily newspaper seeking written opinion from concerned VDCs, schools, health posts and related local organizations. A copy of the public notice was also affixed in the above mentioned organizations. Focus group discussions were conducted to collect and solicit information on the bio-physical and socio-economic and cultural resources and their current use and management; meeting minutes were taken.
130. On the other hand, public disclosure has been very weak. The draft IEE report or its summary in Nepali language was not disclosed to the public particularly to the affected people and other stakeholders. The ADB Environmental Safeguards – (Policy Principle 6) requires the disclosure of the draft environment assessment report including the EMP in a language understandable to affected people and other stakeholders. It also emphasizes on disclosing the final report to affected people and stakeholders. However, the IEE report in English including an executive summary in Nepali language is kept in the Information Centre of Bajura DDC and the concerned offices of MLD for public disclosure, and is also available from the websites of ADB, DOLIDAR and DRILP.
131. The executive summary of the IEE studies, the identified project impacts, recommended mitigation measures and the Environmental Management Plan (EMP) in Nepali language will be prepared and distributed to the stakeholders and the concerned VDCs. A timely disclosure of mitigation measures and public consultation and participation will increase people’s awareness of environmental and climate change impacts of the subproject, which will enhance the implementation process.
VIII. GRIEVANCE REDRESS MECHANISM
132. The IEE reports of the three proposed subprojects were prepared by DDC, verified by PCU and CISC, reviewed and concurrence given by ADB, and were approved by MLD, but
ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 33 Final Report - Linked Document 8: Initial Environmental Examination these reports do not include grievance redress mechanism which is one of the ADB safeguard requirements.
133. The project will establish environmental and social grievance redress mechanism to receive and facilitate resolution of affected peoples’ concerns, complaints, and grievances about the project’s environmental and social performance. It should address affected people's concerns and complaints promptly, using an understandable and transparent process that is gender responsive, culturally appropriate, and readily accessible to all segments of the affected people at no costs and without retribution. The affected people will be appropriately informed about the mechanism.
134. The MLD and its central organization (DOLIDAR and PCU), the District Development Committee at district level and subproject level organization (DPO/DISC) will establish an efficient and effective environmental and social grievance redress mechanism early in the project cycle. The concerned offices will receive and register complains from the project affected people or stakeholders, review and investigate the complaints, develop resolution options, respond to grievances, monitor and evaluate the resolved activities, and publicize the mechanism.
IX. ENVIRONMENT MANAGEMENT PLAN
A. Environmental Monitoring
135. Environmental monitoring plan is an important tool to ensure the implementation of mitigation measures for minimizing adverse impacts and maximizing the beneficial impacts. Environmental monitoring generates useful information and improves the quality of implementation of mitigation measures. In rural road sector, reporting on EMP activities by subproject level organization and monitoring by DDC as well as by central level organization has always remained considerably weak. Monitoring is occasionally done by center. Monitoring reports are not regularly sent to central office by districts.
136. DDC supported by DPO/DISC in the district and DOLIDAR supported by PCU/CISC at central level will be responsible for monitoring. The Environment Specialist at DPO will develop in-built monitoring mechanism in consultation with PCU/CISC. A safeguard desk will be established in each DPOs to monitor and coordinate safeguards in subproject operations. A focal person will be assigned responsibility of the safeguard desk. The desk will conduct regular monitoring of EMP compliance and record them. A monthly safeguard meeting will be organized by the safeguard desk where all the technical team of DPO and DISC will participate, discuss safeguard compliance issues, identify areas for improvements and prepared corrective action plan.
137. MLD/DOLIDAR is required to implement safeguard measures and relevant safeguard plans, and to submit periodic monitoring reports on their implementation performance to ADB. The PCU/CISC will also make periodic field observations, review environmental compliance in subprojects and monitor reports sent by DDCs. They will also prepare trimester and annual environmental monitoring report with comments and suggestions on non-compliance issues at subproject level.
138. Monitoring will be done at pre-construction stage, construction stage and operation stage. The pre-construction monitoring will pronounce the level of preparation for implementing the construction related mitigation, and prepare up-to-date environmental status of specific site
ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 34 Final Report - Linked Document 8: Initial Environmental Examination where the impacts are assessed to be significant. The construction stage monitoring is to check compliance with the best practices, norms and standards and on implementation of the mitigation measures prescribed by IEE. It will focus on mitigation measures as prescribed in IEE report such as disposal of spoil and construction wastes and its consequences, disruption of natural water courses, drainage work and its consequences, slope protection measures, loss and degradation of forest vegetation, compensatory plantation etc. During operation phase, monitoring will be done on environmental and social aspects of the road such as drainage structures, slope protection and soil erosion, encroachment in ROW, quarrying and mining affecting road slopes, status of spoil dump sites and quarry sites, management of plantation area etc. The DDC environment specialist will develop monitoring indicators, procedure, and schedule.
Table 9: IEE Monitoring Parameters
Monitored Parameters Selected for Monitoring Sector Soil, Landslide, Number, location and extent of slope failures Erosion Cause analysis for slope failure, natural/man-made Waste Area (ha.) of land, forest and properties affected management Nos and extent of gully erosions and pavement failures sites Nos and extent of road subsiding effects Suitability of corrective/bio-engineering measures Nos of days and nature of traffic delays due to slides Sites and suitability for safe disposal of wastes and garbage
Bio-engineering Nos and plant species selected for bio-engineering, disaggregated by protective function Seismicity Nos and magnitude of local seismic activities and respective damage to structures, including road Water Pollution, Nos and extent of water-logging at operative and/or decommissioned Water Resources construction sites and their uses: Blockage of waterways - extent and secondary impacts Surface/ ground Water pollution incidents due to unsafe disposal of waste and spoil, analysing water effects on local fisheries Irrigation water Damage to farm lands due to water shortage or pollution Drinking water Use of field kit for drinking water quality, determining pH, particulates, turbidity Public taps etc. Air and noise Assessment of noise level in site by direct observation and interview with level in relation to stakeholders traffic volume Visual assessment of dust development at selected sites/sensitive spots and interview with local stakeholders Traffic volume measurements Road Safety Speed measurements at selected spots Nos and type of road accidents recorded in the Traffic Police and in local health service centres Suitability of local road signs Records on public and driver road safety awareness campaigns Wildlife/ Habitat Nos and extent of road accidents inflicting wildlife Disturbance DFO records of illegal timber extraction and wildlife trade Impacts on Observations and handling of invasive species Forest Resources Socio-economic Demographic, economic and education data Development Nos and extent of new settlements /types and ethnic groups near Road Nos and extent of new businesses
ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 35 Final Report - Linked Document 8: Initial Environmental Examination
alignment Nos and extent of new services and utilities Resettled Nos of HHs resettled Households and HH questionnaire to identify livelihood conditions of resettlers livelihood Income situation and opportunities for the resettlers restoration Verification of compensation and assistance to resettlers Community Nos/schedule of campaigns and nos of beneficiaries awareness Revision of training agenda & propagated information material programmes Questionnaire evaluation, interviewing selected participants on the impacts of relating to the training provided by associated NGOs and Contractors environment Nos of beneficiaries having received awareness training against the spread of protection and HIV/AIDS and girl/boy trafficking avoidance of Records from locals and local police concerning social conflicts social conflicts
ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 36 Final Report - Linked Document 8: Initial Environmental Examination
Table 10: Compliance Monitoring Responsible Verifiable Verification Responsible Parameters/Issues Implementing Indicators Methods Schedule Monitoring Agency Agency Final alignment selection DIST Incorporation of IEE / EMP Walkthrough along final road Initial stage Proponent as per IEE /EMP recommendations into alignment alignment, verifying sensitive areas preconstruction through CISC; recommendation selection process and design phase DoLIDAR document Land and property Proponent with Cadastral records, Land and Public consultation, photos; geo- Initial stage pre- CFC / PCU acquisition and assistance of properties acquisition procedures; referencing; construction phase (CISC) / compensation DIST Procedures followed during Check inventory against cadastral - well ahead of DOLIDAR / MLD voluntary donation of Land; records and discuss with people construction Preparation of inventory of infrastructures likely to be affected Resettlement, assistance Proponent / Legal provisions by GoN; Check compliance to legal Well ahead of CFC / PCU and compensation DIST Compensations paid procedures construction (CISC) / DOLIDAR / MLD Site selection, preparation Proponent / Project’s arrangement for materials Site observation, geo-referencing Start of DIST/ DPO of construction logistics VWRCC storage, and construction activities and photographic documentation construction period Use of local labour, DRCC / Specifications which obligate the Records of the NGO that facilitates During the entire Proponent / DPO particularly vulnerable VWRCC / DIST contractors/BG to observe certain and coordinates the process for period where groups and women quotas for employing local labour, local people’s employment, labour work is specially vulnerable groups and interviews contracted, women, prohibition of child labour trimester Awareness and orientation Proponent in Training programmes for skill Specifications; Training records, Beginning of DIST / training on road assistance of development, occupational safety check training programme reports, construction and Proponent construction to technicians, associated and environmental protection assess feedback from participants during construction (DTO) and locally employed NGOs of DIST associated with road construction labourers works DIST / Health and safety regulations, first Spot checks at work sites, photos, throughout Proponent / DPO Compliance to Contractor (if aid and medical arrangements, accident records, interviews construction Occupational health and involved) contingency plan, number and type activities, trimester safety matters of safety equipments such as mask, helmet, glove, safety belt, First Aid, Emergency Rescue Compliance to Arrangement specified in the Code Site inspection, discussion with Before DPO/Proponent Environmental Protection of Practice and in Manuals relating Project management, consultants, Measures, including Contractor / BG/ to environmental protection; EMP and local people. Quantifying site- and pollution prevention, water DIST detail in IEE Document; records and specific impacts, photos, laboratory and soil management, observations on pollution, waste tests where required. during construction
ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 37 Final Report - Linked Document 8: Initial Environmental Examination
Responsible Verifiable Verification Responsible Parameters/Issues Implementing Indicators Methods Schedule Monitoring Agency Agency slope stabilisation, cut and management, spoil deposit. Training Existing patrol, control and period fill, waste management, programmes for labourers to enforcement mechanisms, spoils, sensitive habitats prevent impacts on wildlife sensitive enforcement records and critical sites, protection habitats, forests and fuel wood use. of fauna and flora Vegetation clearance Contractor / BG Actual number of trees felled during Record, inspection and interview After detail design DPO / DIST construction works; Location (in with local people and CFUGs and before CFUGs / Formation Width or RoW construction work Proponent Measures to avoid Contractor / BG Use of firewood or fossil fuel by Inspection, interview with local Once a month DPO / CFUGs / pressure on forest and / DIST construction crew, events of hunting people and CFUGs during construction Proponent wildlife and poaching of wildlife Measures to protect Contractor / BG Dust level and noise level at work Visual observation, Observation of Once in a month Proponent / DPO environment from air & / DIST sites, major settlements and good construction practices and during construction noise pollution sensitive spots like health centres discussion with residents and and schools workers Measures to protect water Contractor / BG Visual observation, observation of Site inspection, test of site-selected Once in a month Proponent / DPO bodies from pollution / DIST open defecation/waste/spoil samples of local streams water during disposal around water sources near using standard field kit, interview construction; Upon construction sites ; Parameters like demand for testing pH, hardness, DO, Turbidity etc. with field kit Restoration, rehabilitation, Contractor / BG Continued services by the facilities Site observation; VDC records; Once in 15 days Proponent / DPO reconstruction of all / DIST and functional public life Public Consultation Meetings; during construction infrastructure services Photos disrupted or damaged by the proposal activities Adequate technical and DIST Adequate number of technicians Check number and type of Twice a month DPO , Proponent environmental supervision regularly at site technicians available at site; during construction Ability to implement labour based Skill of work carried out; road construction concept discussion Clean up and reinstatement Contractor / BG Decommissioned sites indicate no Site observation; Comparing photos; At end of Proponent / DPO of the construction sites / DIST adverse/residual environmental Consultation with land owners and construction period (camps, quarries, borrow impacts, and are rehabilitated to the CBOs pits) satisfaction of the supervisor and land owners
ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 38 Final Report - Linked Document 8: Initial Environmental Examination
Table 11: Impact Monitoring Parameters Verification Responsible /Issues Verifiable Indicators Methods Location Schedule Implementation and Monitoring Agency Slope stability and Inclination, slope failures causes; Drainage Site observation, photos Near steep slopes and at Continuously during DIST during erosion facilities such as catch drain, side drains discussion with people landslide areas and sites construction and construction; and functionality of cross drainage and technicians where bio-engineering operation Proponent / DPO / structures; Fresh gullies and erosion; failed Soil Conservation Success/failure of bio-engineering Office during solutions operation Bio-engineering of Re-vegetation through bio-engineering Site observation; Cut slope area, where During and at end of DIST/ Proponent disturbed slopes application on disturbed slope; Inspection of nursery vegetation is cleared; Project construction Establishment of nursery and its production rate, Nursery photos, measurements Disposal of Spoils Affected aesthetic value, affected forest Site observation and At specific locations where During construction DIST/ Proponent and construction and agriculture, initiated land erosion by interviews, photos, geo- such sites occur wastes local blocked drainage, hazard to downhill referencing sites slope residents and agricultural lands Quarrying of Initiated erosion, changes in river regime, Site observation, Quarry site areas During construction DIST/ Proponent construction erosion by river systems, landslide due to photos, materials quarrying, degradation of vegetation, water records from local health logging, waterborne diseases centers Disruption of Status of rehabilitation Observation and Disrupted aquatic system, During construction DIST / Proponent drainage system Service status of irrigation and water interviews, photos, irrigation schemes supply system; fisheries data, wildlife Operation and maintenance requirement records Loss or Status of road side land; Observation, data Road side land and During construction Proponent / DIST/ degradation of Production / yield; collection and analysis houses VWRCC farmland , houses Status of road side houses; and interview with and properties Status of standing crop along alignment stakeholders Water quality observation of open defecation and waste Visual observation, local streams During construction; DIST / Proponent disposal around water sources near measurement of water Upon demand for testing construction sites ; Parameters like pH, sample using standard with field kit hardness, DO etc. field kit Air quality Dust level in ambient air Visual inspection At construction sites and During construction and DIST / Proponent and comparison with at sensitive spots operation baseline condition (schools, health spots, major settlements) Forest and Numbers of trees, presence of ground Observations, DFO In and around the During construction and DIST/ CFUGs/DFO vegetation vegetation, signs of illicit logging and records, photos; construction sites, operation during construction;
ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 39 Final Report - Linked Document 8: Initial Environmental Examination
Parameters Verification Responsible /Issues Verifiable Indicators Methods Location Schedule Implementation and Monitoring Agency extraction of NTFPs interview with CFUGs markets, CFUGs / DFO during members operation Wildlife Wildlife hunting trapping and poaching by Interview with local Forest areas at roadside Twice a year during DIST during work force, trade of wildlife, people / DFO/ CFUGs construction and routine construction; biological survey on selected biota, road members, photos, during operation CFUGs/DFO during accidents inflicting wildlife observations operation Change in Numbers of people employed by the Records kept by the Project Area Trimester during DIST /Proponent economy Project during construction Project management, construction phase Numbers of women in work forces discussion with stakeholders Trade and Numbers of shops increased or decreased, Records, interviews, Project Area Throughout Project, once Proponent / VDC commerce rental of houses and land spaces observations, photos in a year Cottage industries Establishment of industries in the vicinity of Records and interviews, Project Area/ zone of Throughout Project Proponent / VDC Project Area photos influence Occupational Type and number of accident occurred Observations, photos, Project Area During construction DIST/Proponent safety and hazard during construction; spot checks, Adequacy of occupational safety measured contractors’ and health provided; centre records interview Compensation provided in case of fatal with labors accidents or invalidity Change in socio- No and extent of new settlements / types Observations, interview Project Area During operation Proponent / VDC economic and ethnic groups; Nos and extent of new with local people, DDC structure businesses; Nos and extent of new Police and VDC records services and utilities, social conflicts Ribbon settlement Congestions to road users Records, observations Project Area During operation DDC/CDO Nos. of accidents, RoW encroachment
ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 40 Final Report - Linked Document 8: Initial Environmental Examination
B. Institutional Requirements for Implementing EMP
139. Implementation of environment management plan involves institutions of the GON including national and local government bodies, international and domestic consultants, NGOs, communities from the project area, and other agencies involved in rural development.
140. Department of Local Infrastructure Development and Agricultural Roads (DOLIDAR), under the Ministry of Local Development, is the Executing Agency for the project and it will establish a Project Coordination Unit (PCU) in Kathmandu, headed by a Project Coordinator to coordinate all project activities. The PCU will be responsible for overall project management and implementation, including environmental management
141. Project Coordination Unit (PCU) will have the overall responsibility of detailed planning of project implementation and in guiding and monitoring project activities. PCU will be supported by a Central Implementation Support Consultant (CISC).
142. Central Implementation Support Consultant (CISC) will have an important role to play both at central and district level, and will be responsible for technical assistance and advisory support for project management and monitoring including impact evaluation. CISC will appoint a Senior Environment Expert to coordinate safeguard activities of the Project.
143. The concerned District Development Committee (DDC) will have overall responsibility for project implementation at district level including mitigation works as per EMP, and monitoring environmental programs both during construction and operation phases. The DDC will get technical support from the District Project Office, and will be guided and monitored by the PCU. The DDC will also take responsibility for the operation and maintenance of completed subprojects. The DTO will have the responsibility of administering, overseeing, and monitoring, the functioning of DPO.
144. The District Project Office (DPO) established within the DTO will be made responsible for project implementation including environment management plan, mitigation measures, day-to-day monitoring of environmental activities, coordinating other agencies for environmental management, and reporting environmental activities and compliance status to DDC and PCU/CISC during construction phase. DPOs will be supported by a District Implementation Support Consultant (DISC).
145. District Implementation Support Consultant (DISC) will be responsible as a team to the DTO in each district.
146. Contractors and Building Groups will be responsible for environmental works such as health and safety, spoil disposal, provision of masks to construction workers, management and rehabilitation of quarry sites, and other environmental activities as mentioned in the contract.
147. During the operation phase, the DDC/DTO at district level and DOLIDAR at central level will be the concerned agencies, and the DDC will get technical support from relevant district level organisations such forestry, agriculture, livestock, soil conservation and watershed management etc. The CFUG, community organisations and other user groups, and NGOs at subproject level will implement programme under the direction of DDC.
40 ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 41 Final Report - Linked Document 8: Initial Environmental Examination
Fig. 1: Environmental Management Organization Structure
Government of Nepal ADB and SDC Ministry of Local Development (MLD) other donors
Environment Management Section
DoLIDAR
PCU DDC CISC Environment Assessment Specialist
DTO
DRCC VWRCC DPO DIST
Safeguard Unit Env + Resettlement + Social
Line of Command Line of Coordination Road Building Groups Contractors
X. CONCLUSIONS AND RECOMMENDATIONS
148. The three subproject IEEs were prepared by using environmental checklist in compliance with the agreed Environmental Guidelines and Project Procedures Manual of DRILP, and the EPA and EPR of the Government of Nepal. The proposed subproject roads will not pass through any environmentally sensitive area and the anticipated environmental impacts are largely generic in nature such as loss of farmland and forests, which can be mitigated.
149. Most of the adverse impacts predicted are of low significance and short term in nature. The beneficial impacts include employment opportunity to local people facing food deficits and severe poverty, access to market services, enhancement of income generating activities through increased farm production, development of community forests through plantation and management, and capacity building of District-level agencies including the DDCs. These benefits from the implementation of the proposed road subprojects are more significant and long term in nature compared to the adverse impacts most of which could be mitigated or avoided. The institutional requirements for implementation of mitigation measures have been identified and monitoring is elaborated in the EMPs. An environmental monitoring plan is also proposed, to be carried out during pre-construction, construction and operation phase.
150. On the basis of the foregoing, it is concluded that the subprojects are not expected to lead to significant adverse impacts on the environment if appropriate mitigation measures (both protective and compensatory) are considered with adequate environmental monitoring.
ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 42 Final Report - Linked Document 8: Initial Environmental Examination
Further environmental assessment of the subprojects to EIA level is not required. The subproject is environmentally cleared and can go ahead with implementation.
Decentralized Rural Infrastructure and Livelihoods Project II (DRILP II) (ADB TA No. 7573-NEP)
FINAL REPORT - Linked Document 9 – Involuntary Resettlement Framework
Prepared for the Asian Development Bank and Government of Nepal
ANZDEC Limited in association with Consolidated Management Services Nepal (P) Ltd. August 2011
CONTENTS
Page
I. INTRODUCTION 1
II. OBJECTIVES, POLICY FRAMEWORK, AND ENTITLEMENTS 1 A. Resettlement Policy and Legal Framework 2 B. Likely Scope of Land Acquisition and Resettlement 6 C. Entitlements 7
III. SOCIOECONOMIC INFORMATION 12 A. Resettlement Planning Procedures 12
IV. CONSULTATION, PARTICIPATION, AND DISCLOSURE 14
V. COMPENSATION, INCOME RESTORATION, AND RELOCATION 15 A. Arrangements for Housing Relocation, including Transfer and Establishment 15 B. Income Restoration 16
VI. GRIEVANCE REDRESS MECHANISM 17
VII. INSTITUTIONAL ARRANGEMENTS 18 A. Capacity Building of Project Agencies 18 B. District Level Resettlement Coordination Committee 19 C. Compensation Determination Committees 19
VIII. BUDGET AND FINANCING 19
IX. IMPLEMENTATION SCHEDULE 20
X. MONITORING AND REPORTING 22 A. Monitoring Requirements 22
ATTACHMENT 3: SAMPLE VOLUNTARY CONTRIBUTION CONSENT FORM 25
ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 1 Final Report – Linked Document 9: Involuntary Resettlement Framework
INVOLUNTARY RESETTLEMENT FRAMEWORK I. INTRODUCTION
1. The Decentralized Rural Infrastructure and Livelihood Project – Additional Financing, referred to as the Project, will be an extension of the Decentralized Rural Infrastructure and Livelihood Project (DRILP), approved in 2004. The Project aims to reduce poverty in 18 very poor remote hill and mountain districts1 of Nepal. The Project will improve access to economic and social services and enhance social and financial capital of the people in the project area through construction of rural infrastructure and community development program. The project‟s outputs include (i) rural transport infrastructure network extended and maintained; (ii) supplementary investments provided for community infrastructure; (iii) income generating capacity of rural households enhanced; and (iv) project management and implementation capacities strengthened at Central and District levels. The Department of Local Infrastructure Development and Agricultural Roads (DoLIDAR) is the Executing Agency (EA) and the District Development Committees (DDCs) will be the Implementing Agencies. The Project will be financed by the Asian Development Bank (ADB) and other donors and ADB will take the lead on ensuring social and environmental safeguards in project preparation and implementation.
2. This Resettlement Framework (RF) is prepared to provide the policy and procedures to screen, assess, and plan land acquisition and resettlement aspects of subprojects that are prepared and approved during the Project implementation in compliance with ADB‟s Safeguard Policy Statement (SPS) requirements as well as applicable national laws. There are two components under the project which may require land and assets. However, land requirements and availability, which would vary from subproject to subproject and supplementary infrastructure is unknown until the specific subprojects are identified and civil works needs assessed. As the project is being sector project and land needs would be determined only after detail design of the project. As such, the resettlement framework is prepared.
II. OBJECTIVES, POLICY FRAMEWORK, AND ENTITLEMENTS
3. The objective of this Resettlement Framework (RF) is to: i) provide policy, principles and guideline on process to be followed in land acquisition during implementation, adverse impact mitigation measures and entitlement standards; ii) outline guidance on subproject information disclosure and consultation, institutional arrangement and implementation monitoring arrangements; and (iii) ensure compliance with the SPS requirements of ADB on involuntary resettlement. It sets out the policies and procedures to be adopted by Executing Agencies (EAs) in preparation of investment subproject resettlement plans based on detailed design for submission to ADB for review and approval prior to the construction of road by Road Building Groups and award of construction works contract.
4. The principles of the RF are to (i) avoid land acquisition and involuntary resettlement; and (ii) minimize it where it is unavoidable exploring possible alternative, and ensure that land owner receive appropriate compensation, so that they would be at least as well off as they would have been in the absence of the project. The detailed designs for the subprojects will be carried out with the objective of minimizing the need for land acquisition and involuntary resettlement taking into account the DoLIDAR design criteria for each type of infrastructure development.
1 The 18 project districts are Taplejung, Solukhumbu, Okhaldunga, Ramechhap, Gorkha, Lamjung, Baglung, Myagdi, Jajarkot, Dolpa, Jumla, Mugu, Humla, Kalikot, Bajhang, Bajura, Baitadi, and Darchula. ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 2 Final Report – Linked Document 9: Involuntary Resettlement Framework
A. Resettlement Policy and Legal Framework
1. Applicable Legal and Policy Framework
5. Nepal lacks a comprehensive policy on involuntary resettlement. However, there are many acts, rules and regulations governing land acquisition and involuntary resettlement. The interim constitution of Nepal, land acquisition act, land reform act, land revenue act, road act and guthi sansthan act are the major acts relevant to land acquisition and compensation.
6. The Interim Constitution of Nepal (2007) guarantees the fundamental rights of a citizen. Article 19(1) establishes the right to property for every citizen of Nepal, whereby every citizen is entitled to earn, use, sell and exercise their right to property under existing laws. Article 19(2) states that except for social welfare, the state will not acquire or exercise authority over individual property. Article 19(3) states that when the state acquires or establishes its right over private property, the state will compensate for loss of property and the basis and procedure for such compensation will be specified under relevant laws.
7. The Land Reform Act (1964) is also relevant. As per the Act, a landowner may not be compensated for more land than he is entitled to under the law. This Act also establishes the tiller's right on the land which he is tilling. The land reform act additionally specifies the compensation entitlements of registered tenants on land sold by the owner or acquired for the development purposes. The Act amendment most recently in 2001 has established a rule that when state acquires land under tenancy, the tenant and the landlord will each be entitled to 50 percent of the total compensation amount.
8. The Land Revenue Act (1977) is also applicable, as the land acquisition involves change of ownership of land. Article 8 of the Act states that registration, change in ownership, termination of ownership right and maintenance of land records are done by Land Revenue Office. Similarly article 16 says, if land revenue is not paid by the concerned owner for long period of time, the revenue can be collected through auction of the parcel of the land for which revenue has been due.
9. The Malpot Aien or Land Revenue (land administration and revenue)Act, 2034 This is the main Act to carry out land administration including maintenance and updating records, collection of land revenue and settlement of the disputes after completion of survey and handing over of the records to Land Revenue Office by the Survey Parties. It authorizes the Land Revenue Offices to registration, ownership transfer and deed transfer of land. This Act also authorizes the Land Revenue Offices to transfer ownership and deeds of individual land, if any person applied for the ownership transfer of his/or land with mutual understanding for public use with recommendation of relevant committee.
10. The Public Roads Act, 2031 (1974) empowers the government to acquire any land on a temporary basis for storage facilities, construction camps and so on during construction and upgrading of roads. Any buildings and other structures such as houses, sheds, schools, and temples are to be avoided wherever possible. The government is required to pay compensation for any damages caused to buildings, standing crops and trees. Compensation rates are negotiated between the government and the landowners.
11. Land acquisition must also comply with the provisions set out in the Guthi Corporation Act 1976. The Section 42 of the Act states that Guthi (religious/trust) land acquired for a development must be replaced with other land.
12. The Land Acquisition Act (1977) and its subsequent amendment in 1993 specify procedures of land acquisition and compensation. The Act empowers the Government to acquire any land, on the payment of compensation, for public purposes or for the operation of any development project initiated by government institutions. There is a provision of Compensation Determination Committee (CDC) chaired by Chief District Officer to determine compensation rates for affected properties. The Act also includes a provision for acquisition ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 3 Final Report – Linked Document 9: Involuntary Resettlement Framework of land through negotiations. It states in Clause 27 "not withstanding anything contained elsewhere in this Act, the Government may acquire any land for any purpose through negotiations with the concerned land owner. It shall not be necessary to comply with the procedure laid down in this act when acquiring land through negotiations."
13. DDCs in Nepal are independent body and responsible for local development planning and management. The development activities implemented by DDCs are governed by Local Self Governance Act (LSGA). The act states that DDC will acquire land required for public purposes following procedures described in LSGA. However, DDCs are implementing infrastructure development activities through voluntarily donation of a part of beneficiaries land in building community/rural roads and small-scale rural infrastructure that provide direct benefit to community. Nepal has its own historical tradition of land donation for the construction of public services.
2. ADB’s Involuntary Resettlement Policy
14. The important elements of ADB‟s Safeguard Policy Statement (2009) on involuntary resettlement are (i) compensation to replace lost assets, livelihood and income; (ii) assistance for relocation, including provision of relocation sites with appropriates facilities and services; and (iii) assistance for rehabilitation to achieve at least the same level of well- being with the project as without it. Some or all of these elements may be present in a project involving involuntary resettlement.
15. For ADB operation requiring involuntary resettlement, resettlement planning is an integral part of project design, to be dealt with from the earliest stages of the project cycle, taking into the account the following basic principles:
i. Involuntary resettlement will be avoided where feasible. Where population displacement is unavoidable, it should be minimized. ii. All lost assets acquired or affected will be compensated. Compensation is based on the principle of replacement cost. iii. Each involuntary resettlement is conceived as part of a development project or program: the DPs need to be provided with sufficient resources to re-establish their livelihoods and homes with time-bound action in co-ordination with civil works. iv. The displaced people are to be fully informed and meaningfully consulted. v. DPs are to be assisted to integrate economically and socially into host communities so that adverse impacts on the host communities are minimized ad social harmony is promoted. vi. The absence of formal title to land is not a bar to assistance entitlements. vii. Affected people are to be identifies and recorded as early as possible to establish their eligibility, through a census which serves as a cut-off-date, and prevents subsequent influx of encroachers. viii. Particular attention will be paid to vulnerable groups including those without legal title to land or other assets; household headed by women; the elderly or disables; and indigenous groups. Assistance must be provided to help them improve their socio- economic status. ix. The full resettlement cost will be included in the presentation of project costs and benefits.
3. Comparison of Borrower’s Policy with ADB’s Policy requirements
16. Table 1 below compares gaps between national legal framework and ADB SPS requirements and delineates the measures to fill the gaps.
Table 1: Gaps between Government Law and ADB’s SPS and Measures to fill gap # Key Issues Government Laws ADB SPS Measures Adopted in the RF ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 4 Final Report – Linked Document 9: Involuntary Resettlement Framework
# Key Issues Government Laws ADB SPS Measures Adopted in the RF 1 Loss of more than Do not consider the Income restoration Provision has been 10 % of the total percentage loss of program such as training made to provide training landholdings and income or total land and other measures to and measures in the income holdings restore and improve the Entitlement Matrix (EM) standard of living of the displaced households 2 Squatters/illegal Do not consider Not entitled for Provision has been occupants/non- squatters/ compensation for land; made to provide titled land users encroachers/ non- squatters/ vulnerable compensation for the titled land users for encroachers/non title structures/houses/ compensation holders are entitled to business in the EM. payment for the structures/houses/ business and other assistance 3 Valuation of Compensation rate All compensation is Provision has been affected land , will be determined by based on the principle of made for the houses & other CDC, consisting of (i) replacement cost replacement value for structures and CDO, (ii) the loss of land, trees representative from houses/structures. DDC (iii)Chief of Displaces Peoples (DPs) Land Revenue Office are allowed to take (iv) Project Manager salvaged materials. CDC will make final decision on the rates in the presence of representatives from DPs, VDCs, civil society, who will attend the meeting as an observer. 4 Other assistance No provision All the eligible DPs Provision has been for relocation of including tenants, made for the transitional the houses employees are entitled to allowances, transport receive financial allowances. assistance to cover physical and economical displacement 5 Vulnerable No provision Focused on the poor and Provision has been Groups vulnerable group to avoid made for income future impoverishment restoration program and and create new other financial opportunities assistance.
4. The Project Policy
a. Policy Principles
17. The existing policy/legal provisions are inadequate to meet the ADB„s resettlement policy requirements. Taking into the account on experiences and learning from infrastructure projects implemented by the DDCs and measures recommended to fill the identified gaps, the Project will adopt following key resettlement principles: i. Involuntary land acquisition and resettlement impact will be avoided or minimized through careful planning and design of the project; ii. For any unavoidable involuntary land acquisition and resettlement, APs will be provided compensation at replacement cost and/or assistance so that they will be as well-off as without the project; ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 5 Final Report – Linked Document 9: Involuntary Resettlement Framework
iii. APs will not be forced for donation of their land, and there will be adequate safeguards for voluntary land donation. iv. APs will be fully informed and consulted during project design and implementation, particularly on land acquisition and compensation options; v. The absence of formal legal title to land will not be a bar to compensation for house, structures and trees/crops, and particular attention will be paid to vulnerable groups and appropriate assistance provided to help them improve their socio-economic status; vi. Land compensation and resettlement assistance will be completed before commencement of civil works contracts, while other rehabilitation activities will continue during project construction; and vii. Land acquisition and resettlement will be conceived part of the project and the costs related to resettlement will be included in and financed out of the project cost.
18. While selecting the subproject, the EA will define the category/type of road to be constructed and declare the Right of Way (ROW) to a minimum possible width. Normally, 8 m width of road corridor will be maintained, except in few sections which require additional support structures. Alignment designers will select the least agriculturally productive land and will avoid settlement areas while selecting the road alignment.
19. The sub-project selection and implementation will follow community-driven approach, which gives communities control over planning and project implementation. The Project will focus more on rural infrastructure that provide direct benefits to community, including improved access to markets and services such as schools, health and other public services. Experience from DRILP I shows that the improved road also leads to higher value and production of local land because of improved access and availability of agricultural inputs.
20. Given that most local people are willing to voluntarily donate part of their land in building community/rural roads and small-scale rural infrastructure that provide direct benefits to the community, the Project will also continue to some extent the Nepal‟s tradition of land donation. However, adequate process and safeguards will be built into subproject resettlement plans to ensure that the voluntary land donation is unforced and it doesn‟t lead to impoverishment of affected people, including:
i. Full consultation with APs and communities on selection of sites and appropriate design to avoid/minimize additional land take and resettlement effects; ii. As a first principle, APs will be informed of their right to entitle compensation for any loss of their property (house, land, and trees) that might be caused by the project construction, and the land donation might be accepted only as a last option; iii. Full recognition of, and respect of, community choice between compensation and donation through community consultation meetings reported in the walkthrough Survey Reports; iv. No one will be forced to donate their land and APs will have the right to refuse land donation proposal from EA; v. In case APs are directly linked to project benefits and thus are willing to voluntarily donate their land after they are fully informed about their entitlement, the project will assess their socio-economic status and potential impact of land donation and accept land donation only from those APs who do not fall below the poverty line after the land donation (Note: analysis of core sub-projects shows that all APs losing >10% of land holding fall under poverty line so excluded from land donation, and hence the land donation will be limited to 10% of total land holding); vi. Any voluntary land donation (after the process as mentioned above) will be confirmed through a written record, including a "no coercion" clause verified by an independent third party (Format in Appendix C); vii. The donation will be limited to only land and minor assets (houses and major assets will be excluded from donation); and viii. A Grievance Redress Committee (GRC) will be set up in every road section (chaired by local leaders, including representatives of APs); and APs who are not satisfied ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 6 Final Report – Linked Document 9: Involuntary Resettlement Framework
with the land donation can file their complaint with the GRC. If the GRC finds out that the above provisions were not complied with, APs will be excluded from land donation.
21. Based on the socio-economic and resettlement impact analysis of the core subprojects and lesson learnt from DRILP and to avoid potential preparatory delay in resettlement planning, the Project will adopt following criteria, among others, while selecting sub-projects during implementation:
i. The priority in selection of subproject will be given to those which don‟t require additional land such as rehabilitation of existing infrastructure. ii. Priority will be given to those subprojects where preliminary resettlement planning activities has already done. iii. The subprojects where additional land requirement is unavoidable to improve the road standards and safety, priority will be given to road rehabilitation or road upgrading where track is already open, do not physically displace families and loss of house limited within 20 houses along the alignment. iv. The selection criteria for supplementary infrastructure will exclude any subproject that may involve land acquisition and resettlement. They will be implemented only if land is already available or do not require additional land.
B. Likely Scope of Land Acquisition and Resettlement
22. The PPTA has made feasibility studies for three subprojects prepared under DRILP I, the Dhungesangu – Dobhan Road in Taplejung; the Gama-Nele Budhidanda Road in Solukhumbu‟ and the Barahbise-Aatichaur Road in Bajura.
23. In Taplejung District the proposed subproject II is Dhungesangu to Dobhan which crosses three VDCs namely Sangu, Dhungesangu and Change. The baseline survey of the ZOI area and 20 percent sample survey has been completed about one year ago (2010). However, the detailed design is not yet completed, so no Resettlement Plan (RP) has been prepared for the Taplejung subproject, although an estimated 1,960 APs having 17 hectares of private land will be affected by the subproject.
24. In Solukhumbu District, the proposed subproject Garma-Nele–Budidanda is about 27 km in length, of which an RP for only 9.6 km was prepared and approved. According to the RP, some 655 APs, with 3.57 hectares of private land will be acquired by the subproject. An RP for the remaining 17. 4 km. is yet to be done.
25. Similarly, in Bajura District, out of a proposed 22.7 km, an RP has so far been prepared for only 13 km. It is estimated that about 2,230 APs, with 11.29 hectares of land will be affected by the subproject. Some 16 houses will require dismantling and 1,105 fruit and fodder trees will be affected by the subproject.
26. Besides the above three subprojects identified for PPTA feasibility studies, the PPTA also had access to eighteen RPs prepared for DRILP I, all available at the DRILP I website and eight available on the ADB‟s website. These have been reviewed for resettlement effects, socioeconomic background, and were used for estimating the project estimated costs.
27. The rehabilitation of existing infrastructure is not expected to involve any land acquisition and resettlement. However, subprojects with new civil works construction may require additional land for their right of way. Mostly, road projects will need additional land and thus may trigger ADB's SPS requirements. Based on a typical cross-section of a project road, 8 meter wide right of way is envisaged for most road sections, except for those which require additional structures (e.g., retaining walls). In this way, new road construction may require about 2 ha/km. Of which, about 94% is expected to involve privately owned land and the remaining to be government/public land. While the private land may also involve private ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 7 Final Report – Linked Document 9: Involuntary Resettlement Framework trees and structures, the extent of population displacement or relocation of houses is expected to be low in rural roads. Other sub-sectors are not expected to involve any land acquisition and resettlement, as their selection criteria exclude any subprojects that require additional private land and/or involve any involuntary resettlement impacts.
28. The three road subprojects were studied under the PPTA, and RPs have been prepared for these subprojects. These will serve as sample documents for the future subprojects. Table 2 summarizes scope of land acquisition and resettlement for these subprojects.
Table 2: Scope of Land Acquisition and Resettlement in Core Subprojects
Total Public Private Other Name House Tree APs Km Land Land Structures Dhungesangu – Dobhan 21.8 x 17.0 ha 4 2,000 x 1,960 (350 in Taplejung2 HH) Gama-Nele Budhidanda in 27.1 0.35 3.57 ha X 373 X 655 (117 Solukhumbu3 ha. HH) Barahbise-Aatichaur in 22.7 1.71 11.29 ha 16 1,105 2 2,230 Bajura4 ha (277HH) Total 71.6 2.01 31.86 ha 20 ha
Note: The above information includes a tentative estimate for 21.8 km for Taplejung. The Solukhumbu and Bajura estimates are according to a prepared RP for the former district for 9.6 km and an estimate for a 13 km road in the latter district. 29. As the land acquisition and resettlement needs will not be identified until detailed design, estimated total numbers of projected affected persons/families cannot be detailed in this section but will be calculated for each subproject during the feasibility study. Based on DRILP experience, the Project‟s total resettlement budget will be between 6-10 percent of construction costs. Although exact numbers of land acquisition and APs are not available in advance of the Project implementation, based on DRILP I experience, it can be estimated that some 123.95 ha of private land can be expected to be acquired and affecting some 25,500 APs.5
C. Entitlements
30. The project is expected to have minimal impacts on land acquisition and resettlement. The land within the existing right of way conformed by due diligence will be not be compensated for. The existing right of way for road improvement/upgrading will be defined as if it has been used for road traffic for past 3 years or written confirmation given by the community meeting of private owner about right of way. The additional land required for newly defined road width, beyond the existing right of way, will be subject to social impact assessment and land donation eligibility analysis. All involuntary land acquisition (other than exceptional voluntary land donation) will be compensated at replacement cost and DPs assisted so that their economic and social future would generally be as favorable as it would have been in the pre-project standards.
2 Taplejung: Rough estimate for 21.8 km (Source: Mr. Harish Chandra Chiluwal, SMC, DISC Taplejung) 3 Solukhumbu: Only 9.6 km completed RP – ADB Approved. No further work carried (Source: R. Dhakal, PCU) 4 Have prepared RP for 13 km, approved by MLD. 5 Based on the 18 RPs prepared for sub-projects under DRILP I (See Appendix A) and the DRILP I Trimester Report of March 2011. ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 8 Final Report – Linked Document 9: Involuntary Resettlement Framework
31. The absence to formal title to land will not be a bar to compensation assistance for loss of assets and special attention will be paid to ensuring that households headed by women and other vulnerable groups receive appropriate assistance. The date of the census will be the “cut-off-date” for the entitlement, and owners (including non-titled) of affected assets till such a date will be eligible to be categorized as DPs. The displaced persons will be entitled to a combination of compensation measures and resettlement assistance, depending on the nature of ownership rights of lost assets and scope of the impact, including social and economic vulnerability of the DPs. The description of each compensation measures and assistance is provided in entitlement policy/matrix is in Table 3.
32. The entitlements are replacement of land for land, or at full replacement cost including land registration costs. Non-titled holders will be entitled to resettlement and rehabilitation assistance if they have been occupying the affected land for at least three years prior to the Cut-Off Date. Compensation for houses and other structures will be at replacement cost for materials and labour without deduction of depreciation and salvaged material. Tenants and squatters within the right of way will only be relocated if the land is required for the works.
33. Full compensation payments for land acquisition must be completed before award of civil works contracts. In the cases of absentee owners, attempts must be made to contact them and notify them of their rights, payment can be delayed until their return at the festival season, or payment can be made to the spouse on production of a certificate of relationship from the VDC. This is particularly helpful to women whose husbands are away working and are de facto heads of the household. Land acquisition does not take precedence over land dispute cases awaiting court decisions. Compensation payment has to wait until the court has made a decision. Projected affected households who refuse to go through the claim process as the sums offered are too small should be notified that the money will be placed in a suspense account by the CDO or they can choose to voluntarily donate the land.
34. Land titles will be transferred from displaced person to government of Nepal immediately after compensation payment or agreement of land donation at no cost to the original owner. The Project will arrange required and sufficient resources to support concern line agency representatives to facilitate the land acquisition process.
ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 9 Final Report – Linked Document 9: Involuntary Resettlement Framework
Table 3: Entitlement Policy Matrix
Type of Loss Application Definition of Entitled Persons Policy/Entitlement
1. Acquisition of Entire or part of land to be • Titleholder • Land with equivalent size and category, or cash compensation at replacement cost Private, Tenancy, acquired from owner of the • Tenants • In case of vulnerable group, preference will be in replacing land for land. or Guthi Land land as recorded at cut off (Land Endowed by date • Any transfer costs, registration fees or charges the State and • Tenant will receive the 50% value of the land6 Individuals for Religious, • Land registration in the name of both land owner and spouse (in case of land for land Philanthropic and compensation) Charitable • If remaining land becomes unviable as a result of land acquisition, APs will have Purposes) option to relinquish unviable remaining portion of land and receive similar benefits to those losing all their land parcel. • Non-titled persons will receive compensation for crops and subsistence allowance for one year crop, and provided with replacement land if ailani or Gov. land is available in the village. Any upfront costs for the tenancy agreement will be reimbursed either through an agreement with the land lord or by the EA
2. Temporary Loss Temporary Land Taken by • Titleholder • Compensation at replacement cost for the net loss of income, damaged assets, of Land the Project crops and trees, etc. • Tenants • An agreement between contractors and APs before entering the site.
3. Loss of Structures, Buildings • Owner • Compensation for full or partial loss at replacement cost of the affected structure Residential, Including Cattle Shed, Walls, without depreciation or deduction for salvaged material. • Tenants Commercial, and Toilets Etc. Affected by the • Displacement and transportation allowance for residential and commercial structures Other Structure Project. • Non-titled (encroachers/ to cover actual transact cost as estimated in the RP, equivalent to two month‟s local squatters) daily labor wage. The DPs are entitled to take all the salvaged materials. • Rental stipend equivalent of one months‟ rent for tenants who have to relocate from tented building.
4. Loss of Community facilities (e.g. The users of the facility or • Reconstruction by the project leaving such facilities in a better condition than they
6 The Tenant, Land Acquisition Act 1977 (2034) was amended on 2055/4/26 (198/08/01). Accordingly the registered Tenant will receive 50 % of the total land cost. Previously, it was only 25 %. The tenant will receive 50% of the total land value provided he/she posses a land entitlement certificate. ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 10 Final Report – Linked Document 9: Involuntary Resettlement Framework
Type of Loss Application Definition of Entitled Persons Policy/Entitlement
Community Irrigation, Water, etc.) community or group were before or reconstruction of the affected structures with the consultation of the Structures/ Affected by the Project. community. Resources • Cash compensation at full replacement cost without depreciation of deduction for salvaged material.
Affected Fruit/Nut Trees Owner of the affected fruit/nut Cash compensation based on annual value of the produce for the next five years at trees current market value and calculated according to the Department of Agriculture
norms. RPs to confirm that the DOA norms and techniques are sufficient and updated regularly.
5. Loss of Trees Affected Timber and Fodder Owner of the affected timber Cash compensation based on calculation of the production and calculated according and Crops Trees and fodder trees to the District norms as decided by the Department of Forestry.
Affected crops Owner of the affected crops • Cash compensation based on the locally market prices for the produce of one year and calculated as per the norms of District Agriculture Development Office. Sharecropper of the affected crops • 50% cash compensation of the lost crop for the sharecropper.
6. Loss of Economic Opportunity Lost Persons in the road vicinity who • Preferential involvement in project construction works. Economic as Result of Loss of may be adversely affected, • Skills training support for economic restoration Opportunity Livelihood Base. although they do not lose assets as such • Priority in poverty reduction/social development program
7. Loss of Time All Expenses Incurred In The entire project affected Project facilitates transportation in official process And Travel Travelling to Fill Application persons eligible for Payment in the same day as other compensation. Expenses and Making Claims and Time compensation. Lost.
8.Land Donations Loss of Land and Other Voluntary donation is accepted • No compensation for the donated land, but entitled for compensation of other assets Assets by Means of only if AP: such as house, structures, allowances, etc. Voluntary Donation • Is project beneficiary and is • Transfer of land ownership by negotiation (DDC and the owner). fully consulted and informed • Free/escape of any transfer costs, registration fees or charges. about their rights; • Preferential employment in project construction work. • Doesn‟t fall below poverty line after land donation; ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 11 Final Report – Linked Document 9: Involuntary Resettlement Framework
Type of Loss Application Definition of Entitled Persons Policy/Entitlement
• Donating up to 10% land holding, • Unforced or freely willing to donate (with an agreement, including a "no coercion" verified by third party;
9. Additional Assistance
9.1 Preferential Treatment in All APs • Construction contracts include provision that APs will have priority in wage Employment in Project labour/employment on project construction during implementation. Activities • APs shall be given priority after construction for work as maintenance worker, mandated in local body agreement.
9.2 Skill training and Income One member of each PAF • Skill training and income generation support financed by project Generation Support belonging to vulnerable • RP to include a need assessment and skill training program for APs. group/below poverty line
9.3 Priority in Poverty All APs • Participation of APs with priority in saving credit scheme facilitated by the Project. Reduction/Social • Participation of APs with priority in life skills, income generation, and other Development Programs entrepreneurship. ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 12 Final Report – Linked Document 9: Involuntary Resettlement Framework
III. SOCIOECONOMIC INFORMATION
A. Resettlement Planning Procedures
35. This section provides detailed procedures to be followed in screening, social assessment, and preparation of resettlement plans for sub-projects. It will be ensured that APs are informed, consulted and participated in the entire sub-project cycle.
1. Screening and Categorization of Impacts on DPs
36. Initial screening will be conducted as early as possible in the sub-project cycle to categorize the impacts and identify subsequent approaches and resource requirements to address IR issues. The screening will identify the potential for loss of land, asset/structures, livelihoods, willingness of the community to donate the land to the project, and their impacts through primary and secondary data information collection. The resettlement survey team comprising DPO staff, engineers, social specialist, and local community representatives will make a walkthrough survey of each sub-project. The team will visit the subproject site and arrange public meetings in selected settlements including village leaders to provide information about the project and collect their views on resettlement impact and willingness of APs for any voluntary land donation.
37. Resettlement screening will also enable the categorization of subprojects based on their level of social impacts. A due diligence report will be prepared for the subprojects with sufficient land required within existing right of way. The screening and categorization will be initiated by DPO, and reviewed and confirmed by PCU. Once finalized, the due diligence report and categorization form will be included in sub-project feasibility/design report to be submitted to ADB. The Sub-project Impact Categorization Form is in Attachment 3.
2. Social Impact Assessment (SIA)
38. DPO will undertake an SIA as part of the detailed design of the sub-project. The SIA will gather relevant information about APs, including (i) population record of affected people, (ii) an inventory of affected assets (land, homes/structures, trees, crops, community services, and income sources) based on the cadastral map, (iii) landownership, usage and productivity assessments, and (iv) data on the existing economic and social condition of APs, including an assessment of impoverishment risks and a survey of least 10% of affected people, together with local-level impact data. The census survey will enumerate of all APs based on site investigation sufficient to identify titled, legalizable and non-titled APs. The census will also serve as a cut-off date to prevent later influx of outsiders to the project area. The information will be gathered in participation of affected community, local NGOs/CBOs, and APs.
39. The SIA will identify potential impacts and measures to avoid/minimize/mitigate involuntary resettlement risks. Vulnerability assessment of APs will be part of SIA and a list of vulnerable APs prepared and finalized in consultation with local community. The list and assistance for them will be displayed at the VDC office along with the eligibility criteria based on which the list was derived. The SIA will also assess options for any relocation, opportunities for income restoration/economic rehabilitation, and any need of social preparation phase for vulnerable groups. It will also solicit APs willingness to donate their land. Based on this information, the eligibility criteria and entitlement for compensation/assistance will be established in consultation with local stakeholders. Based on the SIA (upon completion of detailed engineering design and detailed measurement survey), the project will prepare appropriate resettlement plan. The indicative terms of reference for the SIA and preparation of RPs are in Attachment 4.
ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 13 Final Report – Linked Document 9: Involuntary Resettlement Framework
3. Resettlement Plan Preparation
40. . The RP will be prepared based on the results of the census and information drawn from SIA. The RP will include measures to ensure that the socioeconomic condition, needs, and priorities of women are identified, and that the process of land acquisition and resettlement will not disadvantage women. If any adverse impacts on the Indigenous People (IPs) are identified, they will be addressed adequately through an Indigenous Peoples Plan (IPP) or specific actions included in the RP. The DPO assisted by social safeguards officer (SSO) engaged under CISC will prepare RPs for subprojects based on the engineering design of the road, if necessary, and in consultation with APs, local representatives, and local NGOs. The RP will be prepared in English and the executive summary, plus entitlement matrix, should be translated to local language and notified to the public.
41. The content of resettlement plan includes a statement of involuntary resettlement objective and strategy, with (i) executive summary, (ii) project description; (iii) scope of land acquisition and resettlement; (iv) socio-economic information and profile; (v) information disclosure, consultation and participation; (vi) grievance redress mechanisms; (vii) legal framework; (vii) entitlement, assistance and benefits; (viii) relocation of housing and settlements; (x) income restoration and rehabilitation; (xi) resettlement budget and financing plan; (xii) institutional arrangements; (xiii) implementation schedule; and (xiv) monitoring and reporting plan, showing how activities will be scheduled with time-bound actions in coordination with the civil works. The RP will establish an eligibility cutoff date.
42. Where sub-projects involve voluntary land donation, the RP will also include arrangements to deal with losses on a voluntary basis with appropriate safeguards. Such land donations will require a written agreement with the respective landowners. It may be in a form of MOU between the landowner(s) and the DDC or other documentation acceptable to ADB, including a no coercion clause witnessed by an independent third party e.g. NGO for whole land donation papers. Such agreement will also annexed to the RP.
43. The DPO will organize a consultation meeting with APs and local stakeholders to share the draft RP and inform them about how the concerns raised by them during the screening and walk-through survey have or have not been addressed in the project design. In order to ensure that the subproject design have incorporated concerns raised locally and measures to minimize adverse impacts and enhance project benefits, the RP will be finalized only after the final consultation with affected persons. A meeting minutes on endorsement of entitlements proposed in RP duly signed by APs will also annexed to the RP.
44. The draft RP prepared by the consultant will be reviewed by DPO. DPO will send it to PCU for further review and approval by ADB with their endorsement on the entitlements. RPs will be reviewed by the PCU assisted by social safeguards specialist in CISC and submitted to ADB for review and approval. No section or part thereof under the civil works contract shall be handed over to the contractor nor initiated through road Building Groups (BGs) unless the RP has been approved by ADB and required land compensation payments should have been completed for all resident land owners. For absentee land owners, honest efforts to contact them should be documented, and where payments cannot be made to a designated alternate (such as a relative) with the land owner‟s consent, such payments may be held in trust by a local bank.initiated with substantial completion within six months of the start of civil works.has been completed.
4. Valuation and Replacement of Assets
45. An enhanced survey team at District level in the District Technical Office assisted by the DISC will undertake the survey and valuation of affected assets and recommend it to the CDC for final valuation and compensation distribution. The survey team may seek experts‟ advice from district agriculture office, district forest office and other relevant offices for valuation. This enhanced team would be able to review household details, resources, assets, and income from the affected land to be acquired whilst accompanying the Land Revenue ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 14 Final Report – Linked Document 9: Involuntary Resettlement Framework
Officer (LRO) and the surveyor from the Department of Survey. The time necessary to establish ownership and use will have to be planned into project implementation.
46. The CDO, local officers and a representative of the DDC will form the Compensation Determination Committee (CDC) in line with Land Acquisition Act 1977, with the social mobilizer as observer, and agree rates of compensation with the AP. APs will be compensated at replacement cost for any involuntary land acquisition. The District survey team will assess the various categories of loss envisaged in the entitlement matrix and fix prices/costs for compensation according to the compensation entitlements agreed by the CDC. Safeguards for poor and socially disadvantaged groups will be facilitated by the presence of the social mobilizer, backed by their NGO presence as necessary. Designated third-party or NGO will confirm "no coercion clause" in any voluntary contribution of land. Disagreements over valuations and extent of land-take should be negotiated as quickly as possible in order to reduce delays to letting contracts for reconstruction and the start of construction.
47. Compensation payments will be disbursed by the CDO. A transparent system for checking entitlement against payment is needed with a monitoring exercise to ensure that payment has been made as assessed to the right person. The best arrangement may be to make the payment at the home of the recipient to reduce off-take in town. Payments are made by check and APs may need help in opening and operating bank accounts. This will be included in the social mobilization program.
48. The efforts will be to timeliness in payments and fairness in the amounts agreed and to take serious steps to find ways to compensate vulnerable families even if they have no land title. Assistance will be given to those without Lal Purja (land ownership document) to prove ownership rights and to compensate them for the time lost and travel costs involved in proving and changing land titles.
IV. CONSULTATION, PARTICIPATION, AND DISCLOSURE
49. The RPs to be developed in each sub-project will identify primary and secondary stakeholders and include specific measures for consultation, participation and information disclosure in full compliance with ADB‟s SPS. The primary stakeholders include APs, beneficiaries and stakeholders directly involved in the resettlement planning and implementation. The secondary stakeholder include other individuals or groups with interest in the project, such as local or national government, policy makers, advocacy groups, elected officials and NGOs.
50. The information dissemination and consultation with the affected people will be the starting point for all activities concerning resettlement. Participation of APs as well as other stakeholders will be facilitated throughout the subproject cycle. NGOs and CBOs will also be used to facilitate this process. Various mechanisms of participation will be adopted in the process, including:
o Information Dissemination/Campaign through NGOs/Consultants/VDCs o Public Meetings and Focus Group Discussion (FGDs) o Formation of Consultative Groups at VDC Level o Interviews/Survey and Frequent Interaction with APs
51. Public consultation and information dissemination/campaign will be carried out in each VDC to disseminate information about the Project to APs and local communities. The APs will be provided with relevant information and consulted during IPSA, SIA and preparation of resettlement plans. Further, the following information will be made known to the community concerned prior to the SIA and preparation of RP, including agreements for any voluntary land donation, as well as:
o Project Details ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 15 Final Report – Linked Document 9: Involuntary Resettlement Framework
o Agencies involved in Project Implementation and their Responsibilities o Project Drawings and List of Potential APs o Summary of Resettlement Framework in Nepali Language o Eligibility Criteria and Entitlement for Involuntary Land Acquisition as well as for Voluntary Land Donation o List of Vulnerable APs and Support/Assistance to them o Likely Construction Schedule o Grievance Redress Mechanism.
52. The information dissemination will be through posters and pamphlets, public consultation meetings, and direct discussion with the affected families and institutions. PAPs participation should also be ensured during ISA, resettlement planning, implementation and monitoring. Details of all public meetings with dates, names of the participants, location and information provided place of announcement, major issues raised and how these have been addressed will be documented in the subproject RPs.
53. A Village Works and Road Construction Committee (VWRCC) will work as local consultative forum. The VWRCC will ensure APs‟ participation in the decision making at all sub-project cycle, including RP planning and implementation. During the process of preparing RP, discussion will be held with the affected families, institutions and the representatives of the directly affected VDCs. The DTO shall make available the following documents to APs and disclose to the public:
o A draft RP, before subproject appraisal; o A final RP, after completion of such RP; and o The revised RP, following the Detailed Technical Design (which includes the updated Census, Inventory of Losses [IOL] and SES) or change in Scope of the subproject.
54. Copies of the RPs will be placed at VDC offices accessible to the public. A summary of relevant information from the documents specified above (losses, valuations, entitlements, assistance, grievance procedures, timing of payments and displacement schedule etc.) will be made available to APs as leaflets in local languages. DTO/PCU shall also post the above documents on EA‟s website. During implementation, DTO will prepare resettlement monitoring reports, make them available to affected APs and post them on EA‟s website, and submit these to ADB for review and posting on ADB website.
55. Each RP will be disclosed by EA/IA to the public before submitting them to ADB. ADB will post these documents on ADB‟s safeguards web site. The RF and RPs will also be publicly available at both central and district level project offices. Further, summary RPs in Nepali language will be made available to VDC and, public offices in the subproject sites.
V. COMPENSATION, INCOME RESTORATION, AND RELOCATION
A. Arrangements for Housing Relocation, including Transfer and Establishment
56. The entitlement unit for assistance is the household or family. Loss of housing can be particularly traumatic. Project design will make every effort to ensure that replacement housing is available before people are required to relocate. Affected households will be allowed to retain salvaged materials and be assisted to transport them to the new site, either by the provision of transport or by a contribution to the cost of their transport. Payment will be made before transfer. The construction group leaders or local officials will also help a person relocate, helping with house rebuilding or buying a new house. 57. This will speed up the process and leave the re-settler in no worse position than he was before. The relocation options for the Project are:
o No relocation in which case compensation is paid only for lost assets, ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 16 Final Report – Linked Document 9: Involuntary Resettlement Framework
o On site relocation in which case compensation is paid for lost assets and a Relocation Allowance to smooth the difficulties of rebuilding. o Self-relocation to other areas to live near relatives or for other reasons, compensation will be paid for lost assets, a Relocation Allowance and a Subsistence Allowance be paid to facilitate income re-establishment. A Transport Allowance is paid for help to move building materials o There is no requirement for resettlement sites to be set up by the executing agency. o The overwhelming majority of potential affected families will relocate within the same plot. It is important that new housing is constructed before the old is demolished, as far as is practicable, given the need to reuse salvageable construction materials. o In general, house-owners wish to relocate their houses near to roads with adequate access. On road sub-projects, this may require provision of slabs to cross the drains and sometimes some small works to provide steps. Relocation of houses should bear in mind the likelihood of road widening in the future and therefore leave sufficient room for this and for ensuring a safe space for pedestrians along the road.
58. Consultation will be carried out with APs in terms of the choice of their relocation options. For affected HHs having to relocate their residential and commercial structure, the Project will assist in identifying new locations that minimize social disruption and have access to services and facilities similar to those available in the affected lands. Though it‟s unlikely that expected low impacts will require this, affected HHs can also opt for resettlement sites and the Project will carry out necessary consultation with the affected HHs in site selection, consultation with host population, necessary environmental assessment and provision of sufficient civic infrastructure prior to relocation.
B. Income Restoration
59. The basic objective of income restoration activities is to ensure that each AP will at least have the same or improved income and livelihood after the sub-project. Income restoration is an important part of resettlement and relocation and APs that have lost both house and income sources and are most at risk of impoverishment, and vulnerability. APs who lose their income sources (e.g. land, employment, business) and are at risk of impoverishment will be assisted through income restoration programs under the project. The income restoration program includes employment in construction work, preference as a maintenance worker, and life skill training and facilitation to establish linkages with financial institutions available in the district.
60. The project strategy for income restoration is to establish a link between the improved access to goods, services and facilities, andincome generated by the employment and skills acquired from the training provided to APs. An income uplifting micro-plan for each subproject will be prepared to mobilize savings from the employment for the use of new sets of skills acquired by life skill training and the enhanced capacity of APs. The plan would examine long term local employment opportunities and options for external resources, if required. Suitable mechanisms would be identified for a business expansion plan to link with available or expected financial institutions in the local area.
61. All APs would be eligible for income restoration options to restore AP‟s income immediately before and after relocation, and providing short term allowances such as subsistence/disruption allowances, rental stipend and shifting allowances. However, priority will be given to vulnerable APs if limited training seats are available due to budget constraints. APs will be given priority for employment in sub-project construction. The contract documents will include provisions regarding preferential employment in unskilled labor. The sub-project will provide at least 90 days of unskilled work to the extent possible to one adult from each affected family to enable them to earn sufficient cash to restore their income. Preference will be given to APs for employment expected to be generated by the maintenance component of the project. Safeguards will be put in place to ensure that there is ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 17 Final Report – Linked Document 9: Involuntary Resettlement Framework no employment of children on the project. The social mobilizer will also monitor incidence of child labor.
62. The DPO will also implement a savings scheme in collaboration with the group leaders for their laborers. The project benefits for APs will be maximized through their inclusion in the Project‟s savings scheme. The project encourages laborers to save 20% of their earnings compulsorily. The scheme is set up by the social mobilizers. Achieving regular savings will help the poorest learn to save, to manage these savings and create a small lump sum that could be used to improve their living conditions or to invest in productive assets. Having some savings will enable these households to respond to and participate in other development activities and increase the poverty alleviation impact of the project.
63. Based on the lessons from the training conducted by DRILP and similar infrastructure projects in the districts, the Project will organize only those trainings which will have a skill test and are certified by Nepal Skill Testing Board (NSTB). The NSTB has now standardized courses in 243 different trades. NSTB has 5 different levels of skill courses. However, the Project training will confined to Level 1 only which has 390 hours credit with 2 months training and one month on the job training.
64. The DPO will be responsible for planning, managing and implementing training. The training expert in the CISC will be responsible to assist the DPO for the training needs assessment (TNA), monitoring, and liaison with district line agencies, DDC/DTO and training providers, and selection of training providers with assistance from the social mobilizer in the district. Key steps to be undertaken in livelihood skill training of APs and beneficiaries, and responsibilities of agencies involved would be as follows:
i. Identification of affected, beneficiary households through socio-economic survey will be undertaken by the DPO assisted by the DISC. ii. Identification of potential trainees with analysis of established eligibility criteria such as age, literacy, existing skill set, family occupation and principle earning sources etc. is the responsibility of the assigned social mobilizer from DISC. iii. A training needs assessment would be undertaken by the training expert in CISC with the help of the social mobilizer in the DISC. iv. Finalization of the list of training, budget and name list of trainees will be undertaken by the training expert in consultation with the DPO and trainee. The expert will prepare a cluster level training implantation plan (TIP) along with implementation strategy proposal. The TIP includes modality of training implementation, ToR for training providers and EoI/RFP, if needed. v. Hiring of training providers by DPO will depend on the type of skill training required (as identified through the needs assessment survey) but training providers should be able to come to the trainees, rather than require trainers to travel and stay away from the village (which is a major barrier to participation, particularly for women). vi. Internal monitoring of training and submission of progress reports will be by the training expert, DPO and NNGO. vii. Special support will be provided to each trainee to establish links with financial institutions to purchase equipment or material to start their enterprise through the social mobilization program. viii. Post-training impact assessment is proposed to be conducted by an independent agency, a year after training implementation. The household asset base and socio- economic status would be compared with the pre-project scenario. Baseline indicators would be developed during training implementation planning/resettlement planning.
VI. GRIEVANCE REDRESS MECHANISM
65. The APs have formal recourse to the CDO and Ministry of Home Affairs in case of grievance under regulation specified under the Land Acquisition Act 2034 (1977). Further the Project has set a Grievance Redress Committee at the district and Grievance Redress sub- ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 18 Final Report – Linked Document 9: Involuntary Resettlement Framework committee at VDC to hear complaints. The GRC at district level will be established under the chairmanship of DDC head; other members of the committee will be the representatives of affected families (including BG member), representative from VDC, village elders or local level representatives of mass organizations or other relevant agencies, Project manager, or social mobilization coordinator.
66. The APs may submit their concerns or grievances verbally or in writing to this Committee. All complaints/grievances will be documented properly by the Committee. The Committee shall make field-based assessment to verify/examine the grievances, if necessary. After proper examination/verification of the grievances, the Committee shall facilitate DDC, DPs, and other concerned parties to agree on a time-bound action plan to resolve the grievance if found to be genuine.
67. The VWRCC will also help to solve the local problems. A villager can approach the VWRCC with an individual problem or complaint which is then discussed locally with the aim to settle the issues at local level. Each VWRCC would have its sub-committee in each VDC comprising five members, including APs, to hear complaints and grievances at the VDC level. The Committee comprises three members from VWRCC and two representatives from among the DPs.
VII. INSTITUTIONAL ARRANGEMENTS
68. The DOLIDAR is the executing agency for the project and DDCs will be the implementing agencies, working through their District Technical Offices (DTO). The MLD will therefore be responsible for policy formulation, and DOLlDAR will be accountable for the programming and implementation of acquisition, compensation and rehabilitation measures in compliance with ADB requirements.
69. The Project coordination unit (PCU) established in DoLIDAR for the project will be responsible for overall program implementation, monitoring and supervision. The PCU will have a safeguards desk with a dedicated focal person appointed by DoLIDAR. The safeguard focal person will (i) supervise day-to-day project implementation, (ii) review Project progress, and (iii) coordinate between DOLIDAR and the District Development Committees (DDCs) for resettlement planning, implementation and reporting. Officers from the Department of Land Surveys and Land Revenue will be seconded to work on the Project land acquisition process as and when required.
70. DDCs will coordinate all district subproject activities. The DDC will be responsible for local policy coordination and delegate implementation responsibility to DTO. The DTO will have a social and resettlement desk in each district headed by social planning officer of the DDC. DDC will assign a social mobilizer for the day to coordination and establish institutional linkage. The DTO will be responsible for subproject resettlement planning, implementation, monitoring and supervision. The DTO will liaise with district survey and land administration officer for the secondment of staff to facilitate land administration activity. DPO will ensure that the Project‟s Resettlement Framework is followed in preparation of subproject resettlement plans with appropriate entitlements and mitigation measures in the resettlement plans.
71. At the village level, a Village Work and Road Coordination Committee (VWRCC) will also be established, with representatives from the APs, political parties, intellectuals, vulnerable groups, disadvantaged groups, the business community and local NGOs. VWRCC will assist the APs in informing people about the likely resettlement impacts and solicit the views of the APs regarding compensation and relocation options.
A. Capacity Building of Project Agencies
72. Based on the capacity assessment, additional resources are identified and earmarked for PCU and DPOs to effectively plan and implement resettlement aspects. At central/PCU ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 19 Final Report – Linked Document 9: Involuntary Resettlement Framework level, such resources include inputs of a social safeguards specialist (30 person months: Initial 18 months regular input and intermittent for remaining period) will support PCU in overall resettlement planning, liaison with districts, review, supervision and monitoring and two resettlement officers (66 person months: one officer will have regular input and one will have intermittent input) will responsible for resettlement plan preparation, assist DISC on resettlement survey, planning and implementation and provide necessary support to resettlement specialist; vocational training expert (36 person months: spread over five year project period) is responsible for overall training planning, implementation and supervision provided for beneficiaries of the project under CISC.
73. At district level, each DPO will have a Social Mobilization Coordinator (48 person months) and one social mobilizer dedicated to resettlement planning and income restoration measure (48 person months) under DISC. The social mobilization coordinator support resettlement officer in resettlement plan preparation and overall district level coordination on resettlement activities, social mobilizer will be responsible for resettlement survey, social mobilization, compensation payment and training need assessment and training implementation facilitation. The DISC will also liaise with DPO and the contractor to assist the affected persons, especially women and other vulnerable persons to obtain jobs in construction during the construction period. Further, RP will identify any resource required (e.g. NGOs, training providers) for its implementation at each sub-project.7
74. The PCU/DPO staff will be trained on resettlement planning and implementation. While field level technical activities will be carried out by the DISC, the DPO staff will have to supervise their activities, ensure quality, and coordinate with stakeholders. A similar training will be provided to the PCU staff. Social Development/Resettlement Specialist under CISC will be responsible to design and implement the training at the beginning of the Project.
B. District Level Resettlement Coordination Committee
75. The DDC will form district level resettlement coordination committee (DLRCC) to coordinate a smooth implementation of the land acquisition and compensation process and associated mitigation measures. The DLRCC will be established under the chairmanship of DDC head; other members of the committee will be the representatives of affected families (including vulnerable group member), representative from VDC, land revenue office, survey office, forest office, agriculture office, Project manager, or social mobilization coordinator. The committee will meet each month to discuss on resettlement activity and progress review until completion of compensation payment and deed transfer.
C. Compensation Determination Committees
76. The Land Acquisition Act 2034 provides for the establishment of committees to decide compensation levels at District level. These are composed of the CDO, the LRO, a representative of the DDC and the DOLlDAR Project Engineer. Therefore, the relevant VDC chairmen or representative(s) from the VWRCCs, APs and the Social Mobilizer will be invited in CDC meeting as observer to ensure that decisions are transparent and fair. The CDC will accept the replacement cost principle for the valuation of affected assets.
VIII. BUDGET AND FINANCING
77. All costs related to land acquisition, compensation, relocation, and livelihood rehabilitation will be an integral part of project costs and will be administered according to the Land Acquisition Act, 1977. Table 4 presents the indicative cost for resettlement and rehabilitation for the project estimated based on core subproject assessment and indicated in resettlement plans of indicative subprojects to be implemented by the Project. The
7 All consultants will be national experts. ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 20 Final Report – Linked Document 9: Involuntary Resettlement Framework resettlement and rehabilitation cost includes (i) compensation for acquired assets; (ii) costs associated with rehabilitation measures; and (iii) administrative costs for RP implementation and capacity building of the project agencies.
Table 4: Estimated Costs for Resettlement Components US$ Million Costs of Rehabilitation Support 0.054 Income Generation and Life Skills 0.280 Community Support Costs 0.137 Land Acquisition and Compensation 0.903 Subtotal 1.374 Contingency 20% 0.275 Total 1.649
78. Out of total cost required for resettlement and rehabilitation, compensation payment for affected assets which is 65% of total estimation, will be borne by the government and remaining 35% cost associated with livelihood restoration and assistances will be cover by ADB funding. The Ministry of Finance (MOF) shall ensure that the approved annual budget allocations for the Project shall be sufficient to cover all required counterpart funding, including, but not limited to: (a) resettlement related payments; and (b) land surveys and cadastral mapping. The Ministry of Local Development (MLD) will delegate budget authority to DTO through DDC. The subproject resettlement fund will rest with the DTO. Based on the valuation made by CDC, the DTO will deposit the required funds with the CDC, which will make the payments to the APs.
IX. IMPLEMENTATION SCHEDULE
79. The RPs for all subprojects under the project will be implemented from 2012 through 2016. All land acquisition and resettlement of APs is to be completed before the commencement of civil works. However, social preparation initiatives including income restoration measures and deed transfer may continue and be completed even after civil works has begun. Subproject RPs will include a time-bound action plan to complete the resettlement activities tailored to sub-project construction schedule. The key indicative list of activities in the subproject cycle is summarized in the table 5.
Table 5: Resettlement Assessment and Planning in Subproject Cycle
Responsible Project Stage Task Time Frame Agencies
Dissemination of Project DPO Since Project Information Beginning
Subproject Selection of Subproject DPO Selection stage
After Approval of
Dissemination of Project DPO/DISC Information to Affected Subproject Communities and Meeting in Community Level
Finalization of Alignment DPO/DISC First Two Weeks
ProjectPlanning
andStage Design PreparationStage Resettlement Plan and/or ROW (Preliminary of Design Stage ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 21 Final Report – Linked Document 9: Involuntary Resettlement Framework
Responsible Project Stage Task Time Frame Agencies
Assessment/ Walk Thru Survey); IPSA and Subproject Categorization
Loss Assessment Survey: DPO/DISC Second Two Cadastral Mapping, Weeks Household Listing etc. as part of SIA
Census and Socio- DPO/DISC Fifth and Sixth economic Survey for RP Weeks
Consultation with APs, DPO/DISC Seventh Week Identification of Severely Affected and Vulnerable APs
Prepare Draft RP, DPO/DISC Eighth & Ninth including summary in Weeks Nepali
Verification of APs, DPO/DISC 10th and 11th Entitlement, and any Weeks Voluntary Donation Criteria and Procedures
Planning and Preparation of Agreement DPO/DISC 12th Week of Design Stage with APs for any Design Stage Voluntary Donation
Community Workshop to DPO/DISC 13th Week Finalize RP
Submission of RP for DPO 14th Week ADB's Approval with Endorsement from DIU and Project Coordination Unit (PCU)
Distribution of DPO 1st Month of Assistance/Compensation Implementation.
Resettlement activities PCU Before Contract
verification Award
Enrolment into Livelihood DPO 2nd Month
Restoration Scheme
Ownership Transfer of DPO 2nd Month Acquired Land
Monitoring APs DPO Construction RP Implementation RP Employment And Income Generation
Construction Stage Redressal of Grievances DPO/GRC Throughout the Project Cycle
Post Monitoring Progress Internal: Ongoing Construction PCU/CISC External: ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 22 Final Report – Linked Document 9: Involuntary Resettlement Framework
Responsible Project Stage Task Time Frame Agencies
Consultant/NGO
X. MONITORING AND REPORTING
80. The project monitoring system is two-tier. The first level is for internal monitoring at the EA level and requires an appropriate management and supervision system. The second tier is for external monitoring by an independent agency. The external agency conducts independent monitoring and evaluation to review and verify progress, highlight delays in meeting targets and recommend corrective measures.
81. The PCU will establish a trimester monitoring system and prepare progress reports on all aspects of land acquisition and resettlement activities. Trimester reports of RP implementation will be submitted by PCU, to ADB. The activities will be monitored internally by PCU, and evaluated externally through an independently appointed agency or specialist to provide feedback to management on implementation and to identify problems and successes as early as possible. A set of monitoring indicators and terms of reference for the external evaluation agency will be developed and included in the RP. The independent monitoring agency/monitoring expert will submit its report directly to ADB with a copy to EAs. The PCU will submit Semi-annual monitoring report to ADB. Biannual independent monitoring will be carried out during implementation.
A. Monitoring Requirements
82. The project needs to monitor and evaluate the resettlement and compensation process in order to ascertain that the procedures prescribed have been followed and that APs are at least no worse off than they were without the project. A monitoring and evaluation program will be required to assess that the procedures were followed, that compensation was assessed and disbursed according to the entitlement matrix, that affected people have been able to restore their income and that mechanisms are in place through the social mobilizers, for promoting involvement of local people in other development initiatives.
1. Internal Monitoring
83. The Implementing Agency will provide regular reports to PCU on progress in resettlement preparation and implementation through regular progress reports, based on defined indicators, combined with periodic supervision and verification. The Resettlement Consultant at District level is responsible for monitoring resettlement activities and for managing the entitlement and compensation database. The social mobilizer will form AP committees at field level to participate in the monitoring process and ensure that women and occupational caste groups are represented and heard.
84. The PCU Social Safeguards Specialist will design and implement a subproject resettlement monitoring system and monitor all sub-project resettlement activities and progress. The Social Safeguards Specialist will verify progress reports and check the general delivery of:
o Payment of compensation and timing; o Land readjustment; o Preparation and adequacy of resettlement sites; o House construction; o Provision of employment and adequacy of income levels; o Training; o Rehabilitation of vulnerable groups; o Infrastructure repair, relocation or replacement; ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 23 Final Report – Linked Document 9: Involuntary Resettlement Framework
o Enterprise relocation, compensation and its adequacy; and o Transition allowances.
85. The project‟s internal monitoring and evaluation mechanism to monitor the resettlement and compensation process in order to ascertain that the procedures prescribed have been followed and, as indicated above, that APs are at least no worse off than they were without the project. The verification of resettlement activities will be done before the ADB will permit DOLIDAR and DDC to sign contracts with the building groups and contractors and to commence work. This checks that assess that the procedures were followed, that compensation was assessed and disbursed according to the entitlement matrix. This is the responsibility of CISC social safeguards specialist. This requires additional surveys of around 10% of all APs to check compliance and a verification report issued to the DDC/ DOLIDAR and then to the ADB.
86. Ongoing monitoring of land acquisition, compensation and resettlement will occur as a standard activity of the sub-project DTO Engineers. During project implementation, the DTO will establish a monthly monitoring system involving the DPO, DISC and implementing staff, and will prepare progress reports on all aspects of land acquisition, compensation and resettlement activities and operations. The monthly reports will reflect the progress in resettlement plan implementation with particular attention to compensation payments, consultation, participation of APs in resettlement plan implementation, and grievance resolution. They will submit trimester progress reports to the DRILP Program Coordinator, indicating number of affected persons, compensation affected, grievances and problems, and corrective measures implemented or required.
87. The DTO Engineer will attend VWRCC/Building Group meetings as and when required. S/he will record and monitor local reactions, concerns and grievances for discussion with the DPO Engineer in charge. The VWRCC and social mobilisation coordinator will play an important monitoring role by providing feedback on community concerns, grievances and requests.
88. The DTO will submit a trimester report to ADB on progress of Resettlement Plan implementation. The implementation support consultants (CISC/DISC) will monitor the implementation progress and advise DTO on the timely implementation of the Resettlement Plan and submission of a trimester report to ADB through PCU.
a. Detailed Monitoring and Evaluation Indicators
89. The following table provides some indicative monitoring and evaluation indicators of resettlement activities.
Table 6: Monitoring and Evaluation Indicators
Type Indicator Examples of Variables Process Staffing Number of DOLIDAR staff on DRILP, for sub-project Indicator Number of other line agency officials available for tasks Number of Social mobilization coordinators located in the field Consultation Number of Building Groups contacted or established and meetings held Grievances by type and resolution Number of field visits by DOLIDAR/project staff and social mobilisation coordinators Procedures in Census and asset verification/quantification procedures in place Operation Effectiveness of compensation delivery system Number of land transfers (owner to GON) effected Coordination between DTO and other line agencies Output Acquisition of Area of cultivation land acquired by road section and contract Indicators; Land Area of other private land acquired ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 24 Final Report – Linked Document 9: Involuntary Resettlement Framework
Type Indicator Examples of Variables data Area of communal/government land acquired disaggregated Area of the land donated by sex of Area of the land compensated owner/ head Trees and Number and type of private trees acquired of household Crops Number and type of government/community trees acquired Crops destroyed by area, type and number of owners Compensation Number of households affected (land, buildings, trees, crops) and Number of owners assisted by type of loss Rehabilitation Amount compensated by type and owner Number and amount of allowances paid Number of replacement houses constructed by concerned owners/contractor Number of replacement businesses constructed by concerned owners Number of owners requesting assistance with purchasing of replacement land Number of replacement land purchases effected Livelihood restoration cost Impact Household Employment status of economically active members Indicator – Earning Landholding size, area cultivated and production volume, by crop data Capacity Selling of cultivation land disaggregated Changes to livestock ownership – pre- and post disturbance by sex of Changes to income-earning activities (agriculture) – pre- and post owner/ head disturbance of household Changes to income-earning activities (off-farm) – pre- and post disturbance Amount and balance of income and expenditure
2. External Monitoring
90. External monitoring will be conducted to assess the resettlement plan implementation and its impacts, verify internal monitoring and suggest adjustment of delivery mechanisms and procedures. Additional monitoring surveys of a sample of affected households will be undertaken as a part of this activity. The socio-economic baseline surveys conducted during resettlement planning will be a part of this monitoring activity. This activity will be undertaken by an external independent agency trained in monitoring and evaluation and familiar with resettlement aspect of the infrastructure development, which will provide feedback on RP implementation to both EA/IA and ADB. The external monitoring agency will be hired by PCU with ADB concurrence. ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 25 Final Report – Linked Document 9: Involuntary Resettlement Framework
ATTACHMENT 3: SAMPLE VOLUNTARY CONTRIBUTION CONSENT FORM
Government of Nepal, Land Revenue Office, [INSERT NAME] District [INSERT NAME] Village CERTIFICATE OF LAND TRANSFER
I, [INSERT NAME, AGE, OCCUPATION], with residence located in [INSERT NAME] village, [INSERT NAME] district
Certify that I have been previously informed by local authority of my right to entitle compensation for any loss of property (house, land and trees) that might be caused by the construction of ([INSERT NAME]) financed under the Second Rural Infrastructure and Income Uplifting Project in [INSERT NAME] district. I confirm that I voluntarily donate the land of [INSERT AMOUNT LOSS] square meters located in [INSERT NAME] village ([INSERT NAME] district) to the Project construction. I also confirm that I do not request any compensation of loss of [INSERT OTHER LOSSES SUCH AS TREES] and would request the local authority to consider this as my contribution to the project.
Type of Loss Area (sqm) Number of Unit Rates Total Comment Trees Land
Total
Therefore, I prepare and sign this certificate for the proof of my decision. Further, I certify that I have given my consent without any force/coercion from anybody, including project authorities.
[INSERT NAME] district [INSERT DATE] The owner of the land
[INSERT NAME AND SIGN] Witnesses: 1. [INSERT NAME] 2. [INSERT NAME] 3. [INSERT NAME]
Certified by the [INSERT NAME OF INDEPENDENT THIRD PARTY], [NAME AND SIGN]
This form will be translated in Nepalese Language for implementation purpose
Decentralized Rural Infrastructure and Livelihoods Project II (DRILP II) (ADB TA No. 7573-NEP)
FINAL REPORT - Linked Document 10 – Indigenous Peoples’ Planning Framework
Prepared for the Asian Development Bank and Government of Nepal
ANZDEC Limited in association with Consolidated Management Services Nepal (P) Ltd. August 2011
CONTENTS
Page
I. INTRODUCTION 1 A. General 1 B. Project Goals and Objectives 2
II. OBJECTIVES AND POLICY FRAMEWORK 2 A. Relevant Legal Framework 2
III. IDENTIFICATION OF AFFECTED INDIGENOUS PEOPLES IN PROJECT DISTRICTS 5 A. General Background of Indigenous Peoples in Nepal 5 B. Distribution of the Ethnic Groups (including IPs) in Project Districts 7
IV. SOCIAL IMPACT ASSESSMENT AND IPP FOR SUBPROJECTS AND/OR COMPONENTS 8 A. Specific Procedures for Subproject Planning and Participation of IPs 8 B. Key Positive and Negative Project Impacts on IP 11
V. CONSULTATION AND PARTICIPATION 13
VI. DISCLOSURE 13
VII. GRIEVANCE REDRESS MECHANISM 13
VIII. INSTITUTIONAL AND IMPLEMENTATION ARRANGEMENTS 14
IX. MONITORING AND REPORTING ARRANGEMENTS 14
X. BUDGET AND FINANCING 14
ATTACHMENT 1: OVERALL ETHNIC DISTRIBUTION IN PROJECT DISTRICTS 15
ATTACHMENT 2: GENERAL IP BACKGROUND IN NEPAL 22 A. General Ethnicity in Nepal 22 B. Ethnic and Regional Equity in Nepal 26
ATTACHMENT 3: OUTLINE OF AN INDIGENOUS PEOPLES PLAN (FROM ADB‟S SPS) 27 A. Executive Summary of the Indigenous Peoples Plan 27 B. Description of the Project 27 C. Social Impact Assessment 27 D. Information Disclosure, Consultation and Participation 27 E. Beneficial Measures 28 F. Mitigation Measures 28 G. Capacity Building 28 H. Grievance Redress Mechanism 28 I. Monitoring, Reporting and Evaluation 28
ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 1 Final Report – Linked Document 10: Indigenous Peoples’ Planning Framework
INDIGENOUS PEOPLES’ PLANNING FRAMEWORK I. INTRODUCTION
A. General
1. The Decentralized Rural Infrastructure and Livelihoods Project – Additional Financing, referred to as the Project, is an extension of the ongoing Decentralized Rural Infrastructure and Livelihoods Project (DRILP), approved in 2004. DRILP was an initiative of the GON to reduce rural poverty in 18 very poor remote hill and mountain districts affected by the conflict. The purpose of project implementation was to achieve sustainable increased access to economic and social services and enhance social and financial capital of the people in the project area, particularly the poor and disadvantaged groups in conflict areas.
2. The signing of the comprehensive peace agreement on 21 November 2006 marked the end of eleven years of armed conflict and the beginning of an important stage in Nepal‟s socio-economic development. Nepal entered into a transition period to re-establish and enhance its local infrastructure and deliver government services to rural communities. DRILP, which the Government of Nepal (GON), the Asian Development Bank (ADB) and Swiss Agency for Development and Cooperation (SDC) considered a flagship project for addressing the underlying causes of the conflict, was expected to consolidate the achievements of the popular movement. The project approaches aimed to reduce poverty and improve livelihoods using local infrastructure development as a means to an end rather than, as previously, an end in itself.1
3. The DRILP has been a sector-like project, which has aimed to reduce rural poverty in hill and mountain areas of Nepal by extending the network of rural transport infrastructure and improving small, community level socio-economic infrastructure. At the same time it has provided employment, empowered rural communities, increased institutional capacity, and improved accountability and transparency, so that the investment in construction and rehabilitation of infrastructure resulted in sustainable improvements.2
4. The GON Ministry of Local Development (MLD) and donors (including the GTZ, JICA, SDC, ADB, WB, and the WFP) signed a Statement of Intent (SOI) on 21 February 2008 expressing their preference to enter a Sector Wide Approach (SWAp) for overall rural transport infrastructure.3 Since DRILP demonstrated successful results to date, the SOI signatories intend to support a follow-on project. The project will give more emphasis on reducing the poverty by improving disadvantaged communities‟ access to social and economic goods and services.
5. As with the DRILP, the Project will be implemented in 18 districts of Nepal. These districts are mostly those that are characterized by extreme poverty, total absence, or very limited access to, vehicular linkages to internal or external markets and services. These districts were also among those highly affected by the conflict. The districts covered by the Project are: o Central and Eastern Districts
1 GON. 2008.l Rural Infrastructure for Reducing Poverty and Improving Livelihoods: An Overview of the Decentralized Rural Infrastructure and Livelihoods Project (DRILP) in Nepal. January. http://www.drspnepal.org/drilp/Download/DRILP%20overview%20Brochure-2008.pdf 2 http://www.adb.org/documents/environment/nep/drilp/nep-drilp.asp 3 The sector-wide approach is a relatively new way of working between governments and donors. It is one which a large number of donors are starting to favor, though it also has its opponents. SWAps work differently in different countries but they are typified by the following features: (i) All significant government and donor funding for the sector supports a single sector policy and expenditure program; (ii) Government leads the process and its implementation; (iii) Common approaches are adopted across the sector by all funding parties (government and donors). There is progress towards relying on government procedures to disburse and account for donor funds. http://www.eldis.org/index.cfm?objectId=235458D6-C242-EEBD- EB8EE95A688E3630 ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 2 Final Report – Linked Document 10: Indigenous Peoples’ Planning Framework
Okhaldhunga, Ramechhap, Solukhumbu and Taplejung o Western Districts Baglung, Gorkha, Lamjung and Myagdi o Mid and Far Western Districts Jajarkot, Baitadi, Bajhang, Bajura and Darchula o Karnali Districts Dolpa, Humla, Jumla, Kalikot and Mugu
B. Project Goals and Objectives
6. The Project is an initiative of GON to reduce rural poverty in the above 18 very poor remote hill and mountain districts affected by the conflict. The purpose of project implementation is to achieve sustainable increased access to economic and social services and enhance social and financial capital of the people in the Project area, particularly the poor and disadvantaged groups in conflict areas.
7. The purpose of project implementation is to achieve sustainable increased access to economic and social services and enhance social and financial capital of the people in the project area, particularly the poor and disadvantaged groups in conflict areas. The Project will improve the livelihoods of people in the project areas, particularly the poor, who constitute about 60% of the subproject area population. The Project aims to reduce the poverty level in 18 project districts from 60% to 45% by generating employment of 34,700 person years. The Project design provides that the project districts select rural transport subprojects that help to extend the district network of rural roads, trails and pedestrian bridges. To enhance the impact of improved access on rural livelihoods, districts identify and invest in Supplementary Investment Schemes (SIS) that are small community infrastructure such as water supply, irrigation, micro-hydro power schemes, community/market buildings, health sub-posts, primary schools etc. A number of capacity building activities will enhance skills. Together, these initiatives will provide at local level employment opportunities, empower rural communities for development, increase institutional capacity and improve accountability and transparency.
8. The Project objectives are achieved through a series of project activities that are broadly grouped into four components: (i) Community Development and Rural Livelihood Restoration; (ii) Capacity Building and Decentralized Governance; (iii) Rural Transport Infrastructure; and (iv) Project Management Services. The Project will be implemented in all of the same 18 districts covered in DRILP, which include 14 districts of Western, Mid- Western and Far Western Development Regions of the country.
9. The Project outcome is to improve rural communities' access to goods, services, facilities and employment opportunities in these districts. The outputs are: (i) community development and rural livelihood restoration; (ii) capacity building and decentralized local governance; (iii) rural transport infrastructure; and (iv) project management services.
II. OBJECTIVES AND POLICY FRAMEWORK
A. Relevant Legal Framework
10. The legal framework for this IPPF is based on the ADB Safeguards Policy Statement (2009); the Interim Constitution of Nepal; the Three Year Interim Plan (2007-2010); sections of the NFDIN Act 2002; National Human Rights Action Plan 2005; Environmental Act 1997; Forest Act 1993; and Community Forestry Guideline.
ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 3 Final Report – Linked Document 10: Indigenous Peoples’ Planning Framework
1. ADB Policy on Indigenous People
11. In ADB‟s 2009 SPS, for operational purposes, the term Indigenous People is used in a generic sense to refer to a distinct, vulnerable, social and cultural group possessing the following characteristics in varying degrees:
o Self-identification as members of a distinct indigenous cultural group and recognition of this identity by others; o Collective attachment to geographically distinct habitats or ancestral territories in the project area and to the natural resources in these habitats and territories; o Customary cultural, economic, social, or political institutions that are separate from those of the dominant society and culture; and o A distinct language, often different from the official language of the country or region. 12. In considering these characteristics, national legislation, customary law, and any international conventions to which the country is a party will be taken into account. A group that has lost collective attachment to geographically distinct habitats or ancestral territories in the project area because of forced severance remains eligible for coverage under the SPS. The Indigenous Peoples safeguards are triggered if a project directly or indirectly affects the dignity, human rights, livelihood systems, or culture of Indigenous Peoples or affects the territories or natural or cultural resources that Indigenous Peoples own, use, occupy, or claim as their ancestral domain.
2. GON Policies towards IPs
13. The Interim Constitution of Nepal commits the government for the protection and development of IPs. For the welfare of Janajati (IPs) the government set up a National Committee for development of Nationalities in 1997. The parliament passed a bill in 2002 for the formation of 'National Foundation for the Development of Indigenous Nationalities,' which came into existence in 2003 replacing the previous committee. This foundation has been working for the preservation of the languages, cultures and empowerment of the marginalized ethnic nationalities.
14. The Three Years Interim Plan Paper (2007-2010) includes following policies for inclusive development of IPs and other disadvantaged groups: (i) creating an environment for social inclusion; (ii) participation of disadvantaged groups in policy and decision making; (iii) developing special programs for disadvantaged groups; (iv) positive discrimination or reservation in education, employment, etc.; (v) protection of their culture, language and knowledge; (vi) proportional representation in development; and (vii) making the country‟s entire economic framework socially inclusive.
15. NFIN Act 2002, National Human Rights Action Plan 2005, Environmental Act 1997 and Forest Act 1993 have emphasized protection and promotion of indigenous people's knowledge and cultural heritage. In 1999, Local Self-Governance Act was enacted to give more power to the local political bodies, including authority to promote, preserve and protect the IP's language, religion, culture and their welfare.
3. IPPF Policy Framework
16. The need for a full IPP depends on the nature and extent of project impacts on the indigenous people. According to ADB's policy on Indigenous people, the following criteria will be the basis to determine the project impacts:
ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 4 Final Report – Linked Document 10: Indigenous Peoples’ Planning Framework
o Adverse impacts on customary rights of use and access to land and natural resources; o Negative impacts on socio-economic and cultural identity; o Impacts on health, education, livelihood and social security status; and o Any other impacts that may alter or undermine indigenous knowledge and customary institutions. 17. If the Project impacts are insignificant, appropriate mitigation and benefits from the project will be integrated in the Resettlement Plan (RP). The RP, of if needed the IPP, will ensure the inclusion of IPs in the preparation, implementation, and monitoring, of project activities. The RP/IPP will also ensure the distribution of Project benefits to the affected IP population.
a. Objectives of the Indigenous Peoples Planning Framework (IPPF)
18. This IPPF provides policy and procedures to screen project impacts on IPs and prepare planning documents in compliance with ADB's 2009 Safeguards Policy Statement (SPS) for subprojects during implementation. If the Project impacts are significant, a detail study and preparation of an Indigenous Peoples Plan (IPP), prepared in line with this IPPF, will be required, based on the social impact assessment with the assistance of qualified and experienced experts and drawing on indigenous knowledge and participation by the affected Indigenous.4
19. The IPPF provides a framework for continued consultation with the affected Indigenous Peoples communities during project implementation; specifies measures to ensure that Indigenous Peoples receive culturally appropriate benefits; identifies measures to avoid, minimize, mitigate, or compensate for any adverse project impacts; and includes culturally appropriate grievance procedures, monitoring and evaluation arrangements, and a budget and time-bound actions for implementing the planned measures.
20. IPPF is prepared to guide the preparation of subprojects under the Project to ensure better distribution of the project benefits and promote development of the Janajati along with other disadvantaged social groups in the project areas of influence. The IPPF is developed based on the national policies/strategies as well as ADB's 2009 Social Safeguards Statement (SPS). The principal objectives of the IPPF are to:
o Ensure the participation of the affected IPs and other disadvantaged communities in the entire process of preparation, implementation, and monitoring of Project activities; o Ensure Project benefits will accrue to IPs and other disadvantaged communities, and mitigate any adverse Project impacts; o Define the institutional arrangement for screening, planning and implementation of IPPs for subprojects; and o Outline the IPP monitoring and evaluation process. 21. The Project aims to improve the livelihoods of the 18 districts which are very poor and remote hill and mountain districts of Five Development Regions of Nepal. Further, these districts were severely affected during a decade long civil conflict in Nepal. The project is successful in achieving the improvement of the livelihoods of the local people particularly the
4 ADB‟s Safeguard Policy Statement (SPS) 3: Indigenous People (2009). ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 5 Final Report – Linked Document 10: Indigenous Peoples’ Planning Framework poor and disadvantaged people and also helpful in checking the migration of youth to India and other Gulf countries to some extent.
22. Nearly 46 percent of the total populations in the Project areas are Indigenous/Janajati and the Dalit („oppressed‟, „broken‟ or „crushed‟) low caste, „untouchables.‟5 So the Project will require necessary assessment of the status of these groups to ensure the distribution of Project benefits and to recommend measures to develop their socio-economic conditions.
III. IDENTIFICATION OF AFFECTED INDIGENOUS PEOPLES IN PROJECT DISTRICTS
A. General Background of Indigenous Peoples in Nepal
23. Nepal‟s complex social structure makes it challenging to define IPs in Nepal. Nepal is a multi-ethnic, multi-lingual, multi-religious and, multi-cultural country, dominated by Hindu caste groups (Brahmin-Chhetri). The 2001 census has identified 100 different social groups in the country with over 92 languages and a mix of Hindu, Buddhist, Kirat, Animism, Christian and Muslim religions. The 2001 Census reports 8.4 million populations of 43 ethnic nationalities. The IPs are known as adivasi or janajati in the Nepalese context. Some of the key characteristics of IPs are defined as: (i) distinct collective identity; (ii) own language, religion, tradition, and culture; (iii) own traditional relatively egalitarian social structure; (iv) traditional homeland and geographical area; and (v) written or oral history that traces their line of descent back to the occupants of territories before they were integrated in to Nepal within the present Nepali frontiers.
24. Based on these characteristics, the National Foundation of Indigenous Nationalities (NFDIN), a Government founded institution, has recognized 59 different nationalities as IPs/ethnic groups of Nepal who comprise about 37.2% of the country's population of over 25 million. The majority of these IPs are socially, economically, politically and educationally marginalized. The Human Development Index shows considerable disparities among various nationalities/ethnicities and castes and communities, which in some cases are still widening as can be seen in the Table below (CBS National Living Standard Survey data comparing 1995/96 with 2003/04). As can be seen from the table, the Hill Janajati are the second most poor category over the decade between 1995 and 2005, just above Dalits; and their Poverty Headcount Rate has only improved by 10 percent, the least progress in Nepal after Muslims.
Table A10.1: Poverty Incidence by Caste and Ethnicity, Nepal 1995/96 and 2003/04 Poverty Headcount Rate CASTE AND ETHNICITY 1995/96 2003/04 Change in RANK Percent NEPAL 41.8 30.8 -26 1 Newar 19.3 14.0 -28 2 Brahmin/Chhetri 34.1 18.4 -46 3 Tarai Middle Caste 28.7 21.3 -26 4 Tarai Janajati 53.4 35.4 -34 5 Muslim 43.7 41.3 -6 6 Hill Janajati 48.7 44.0 -10 7 Dalits 57.8 45.5 -21 Others 46.1 31.3 -32 Source: CBS 2005 25. IPs in Nepal are a very heterogeneous group and in the context of this project and framework it is important to distinguish the vulnerable and poor IP from the others. The NFDIN affiliated National Federation of Indigenous Nationalities (NEFIN) has classified IP into five different categories based on socio economic variables that include literacy,
5 DRILP, Baseline Survey Dec. 2009. ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 6 Final Report – Linked Document 10: Indigenous Peoples’ Planning Framework housing, occupation, language, area of residence and population size. This is given in the following table. The project has followed this categorization, distinguishing between impacts on the different categories of IPs.
26. With respect to Endangered IPs, .note that the table covers Nepal overall, whereas the Project is only in select Mountain and Hill districts; and there are no endangered IPs in Nepal‟s mountain areas, whereas IPs within the Inner Terai and Terai will not be within the Project‟s geographical area. As noted below, no Endangered IP groups are found in project districts.
27. Highly marginalized and endangered IP concerns groups that are either very small in size (e.g. Lepcha and Meche) or are small in size or live far away from any town and did not integrate with the larger society through e.g. schooling and service (e.g. Raute, Chepang). All these groups have problems in maintaining their language and their cultural identity as they are too few in numbers or have to give up essential elements of their lives in order to benefit from educational, health and development services. More than 90 % of the population of this group lives in rural areas and their economy is based on agriculture or in the case of Rautes on hunting and gathering. The sub-project selection criteria will screen out subprojects in areas where endangered IPs live. Also noted below, no Highly Marginalized IP groups are found in project districts.
Table A10.2: Indigenous People and their Level of Marginalization Highly Region Endangered Marginalized Disadvantaged Advantaged Marginalized Potential Project Areas of Nepal Mountain -- Shiyar, Shingsawa Bhote, Dolpo, Bara Gaunle, Byansi Thakali (Lhomi), Thudam Larke, Lhopa, (Sauka), Chhairotan, Mugali, Marphali Thakali, Topkegola, Sherpa, Tangbe, Walung Tingaule Thakali Hill Bankariya, Baramu, Thami Bhujel, Dura, Chhantyal, Newar Hayu, (Thangmi), Pahari, Gurung (Tamu), Kusbadiya, Chepang Phree, Jirel, Kusunda, Sunuwar, Limbu (Yakthung), Lepcha, Tamang Magar, Rai, Yakkha, Surel Hyolmo
Subtotal 6 6 13 15 2 Non-Project Areas of Nepal Inner Raji, Raute Bote, Danuwar, Darai, Kumal -- -- Terai Majhi Terai Kisan, Dhanuk Dhimal, -- -- Meche (Rajbansi), Gangai, (Bodo) Jhangad, Rajbanshi, Santhal (Satar) Tajpuriya, Tharu Subtotal 4 6 7 0 0 Source: NEFIN
28. Marginalized IP include two major ethnic groups, the Tamang (5.6%) in the hills and the Tharu6 (6.8%) in the Terai (not a project area), and several minor groups. Compared to the disadvantaged group category below, these groups did not have opportunities like service in foreign armies and other, while the minor groups are extra disadvantaged because of their
6 Many Tharu, who lived in bonded labor on land they previously owned, have been freed, and now live as freed Kamaiya on small plots of government-donated or illegally occupied land in town neighborhoods and forests and depend on the available on farm and off farm labor. Note that Tharu are Tarai dwellers, and therefore won‟t be found in project districts. ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 7 Final Report – Linked Document 10: Indigenous Peoples’ Planning Framework small numbers and subsequent under-representation in decision making and sharing of development benefits. Their literacy and other social development indicators are generally low, and even today many in these groups are in subservient relationships with their dominant patron neighbors, who through their linkages to rulers, economic status and higher education levels, dominate these groups.. The project will address any barriers to participation through extensive consultation and participation.
29. Disadvantaged IP include major ethnic groups like the Magar (7.1%), Rai (2.8%), Gurung (2.4%), Limbu (1.6%) and Sherpa (0.7%). Most of these hill and mountain groups, who will be found in project districts, tended to have in the distant past animal husbandry- based livelihoods, but over the centuries crop farming has become more important. They gradually integrated with the Hindu caste that entered the hills often with support of kings and armies and became the dominant community in their areas. At present most are marginal farmers with low socio-economic status, and low levels of literacy and access to services and opportunities. Some groups have raised their social or economic status through tourism (Sherpa), service in foreign armies (Magar, Rai, Gurung, Limbu) and migration. In mixed societies their participation in organizations and decision making structures tends to be low. The project will address barriers to participation through extensive consultation and participation.
30. Advantaged IPs, i.e. the Newar (5.5%) and Thakali (0.1%) are also in project mountain and hill districts respectively They have sizeable trade communities and presence in the towns resulting in economic clout and integration in the power structures of the country. Their status, interests and issues, notably those of the Newar, are often quite similar to those of the dominant Hindu castes (Brahmin/Chetri). No special assessments or measures are required for this category.
B. Distribution of the Ethnic Groups (including IPs) in Project Districts
31. Various groups of IPs are found in the Project districts, as shown in the table below showing the four major ethnic groups (including IPs) in each project district and their percentage of the overall population. Note that no significant endangered or highly marginalized IP groups are found in project districts. Only Tamangs, of the Marginalized IP group, are found in project districts among the four most populous ethnic groups, and only two districts, Ramechhap, where they are 20.6 percent of the population, and Solukhumbu, where they are 16.2 percent of the population. Similarly, the advanced group, Newars, area a significant population (14.1 percent) in only one project district, Ramechap.
32. Disadvantaged IP Groups (DAG) are found throughout project districts, except in the Mid and Far Western districts, where the Magars are found in Jajarkot District (8.7 percent), only one of five project districts in the geographical region. In the Karnali region, two out of project five districts do not have a significant population of DAG, whereas in the Western and Central and Eastern Regions, all project districts have significant percentages of DAG populations. Appendix A provides coverage of all ethnic groups in project districts, even where they constitute smaller percentages of the district populations. The general trend described above in para 31 applies even when the ethnic distribution in project districts in shown in its totality, i.e., showing all ethnic groups, even those with very small populations.
Table A10.3: The Four Major Ethnic (including IP) Populations in each Project District (Percent of Total District Population)
Indigenous People Non-Indigenous DISTRICT Marginalized Advanced Dalit People Disadvantaged Group (DAG) Group Group (DAG) ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 8 Final Report – Linked Document 10: Indigenous Peoples’ Planning Framework
# Kami/Sarki
Brahman
Tamang
Th Gurung
Sherpa
Chettri
Limbu Newar
Magar
(hill)
Rai
akuri
CENTRAL AND
EASTERN
1 Taplejung 10.4 11.9 41.8 9.3
2 Ramechhap 26.4 20.6 10.9 14.1
3 Solukhumbu 15.2 9.4 31.5 10.3
4 Okhaldhunga 11.9 24.6 10.4 11.9
WESTERN
5 Baglung 22.1 19.3 27.7 13.1
6 Gorkha 18.0 12.1 22.3 11.3
7 31.7 7.4 Lamjung 14.9 15.8
8 Myagdi 7.8 16.5 41.8 13.3
KARNALI
9 Dolpa 43.9 22.6 13.1 5.8
10 Humla 6.3 43.8 19.6 14.0 21.6
11 Jumla 9.5 63.1 5.7 6.5
12 Kalikot 27.5 15.1 21.7
13 Mugu 4.3 44.3 17.0 10.2
MID AND FAR
WESTERN
14 Jajarkot 38.4 17.0 8.7 19.7
15 Baitadi 20.2 56.3 6.1
16 Bajhang 10.8 63.9 5.6 7.9
17 Bajura 6.9 55.5 6.4 9.4
18 Darchula 18.5 59.2 6.6 5.3
Source: Social Composition of the Population: Caste Ethnicity and Religion in Nepal, “Population Monograph of Nepal “Volume 1 (CBS, 2003)
IV. SOCIAL IMPACT ASSESSMENT AND IPP FOR SUBPROJECTS AND/OR COMPONENTS
A. Specific Procedures for Subproject Planning and Participation of IPs
33. This section provides detailed procedures to be followed in screening, social impact assessment, and preparation of IP plans for additional subprojects. It will be ensured that indigenous people are informed, consulted and participated in the entire subproject cycle.
34. The Project will inform, consult with IPs to involve them in all Project activities. Their participation in the Project will allow a better understanding of their needs and to identify measures to mitigate any adverse impacts due to the Project. The IPP will consist of the following:
ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 9 Final Report – Linked Document 10: Indigenous Peoples’ Planning Framework
o Preliminary Screening; o Social Impact Assessment; o Mitigation Measures; o Development Assistance; and o Project Monitoring.
1. Screening
35. Initial screening of subproject impacts on IPs will be conducted as early as possible in the subproject cycle to categorize the impacts and identify subsequent approaches and resource requirements to address IP issues with due consultation with NFIN's district representatives and District Coordination Committee of Janajati at DDCs. A thorough screening will be conducted during Initial Poverty and Social Assessment (IPSA) as part of subproject (pre)feasibility study. The DPO with support of the DISC will identify IP community belonging to the 24 IP groups, their population (number and ratio), and their characteristics as compared to the main population in the subproject ZOI through primary and secondary data information collection. Janajati Empowerment Project Report, District Development Profile, VDC and Ward level information will be consulted and meetings with leaders and NGOs/CBOs representing causes of IPs will be held to assess the population size of IPs, the sub-category within them, and the likely impact of the subproject on each sub-groups. The IPSA will be carried out in accordance with ADB‟s Handbook on Poverty and Social Assessment, particularly the Appendix 7 on Indigenous Peoples; see:
(http://www.adb.org/Documents/Handbooks/Poverty_Social/appendix7.pdf).
36. The concerned officials of the DDC and DISC team will visit the Project area, especially IP settlements, to know likely impacts due to the Project. Public meetings will be arranged with the local leaders to disseminate Project information and to have feedback from them. The details of the IP community, including total number of households, population, and likely loss of assets, will be gathered.
37. Subprojects will be categorized according to the level of impacts on IPs. The level of impacts will be determined by the type, location, scale, nature, magnitude of potential impacts on IPs. The subproject will fall to one of the following categories:
o Category A: subprojects expected to have significant impacts that require IPP; o Category B: subprojects expected to have limited impacts that require specific action for IP in resettlement plans and/or social action plan; and o Category C: subprojects not expected to have impacts on IPs and therefore do not require special provision for IPs. 38. The impacts on IPs will be considered significant if the project positively or negatively: (i) affect their customary rights of use and access to land and natural resources; (ii) change their socio-economic status; (iii) affect their cultural and communal integrity; (iv) affect their health, education, livelihood and social security status; and/or (v) alter or undermine the recognition of indigenous knowledge.
39. The screening and categorization will be initiated by DDC/DTO/DPO, supported by DIST/DISC Social Development Specialist, and reviewed and confirmed by PCU. Once finalized, the IPSA report and categorization form will be included in subproject feasibility/design report to be submitted to ADB. The Subproject Impact Categorization Form is attached.
ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 10 Final Report – Linked Document 10: Indigenous Peoples’ Planning Framework
2. Social Impact Assessment and Preparation of IPPs
a. Conducting SIA
40. A Social Impact Assessment (SIA) will be undertaken in the Project affected area. For the SIA study, demography, socio-economic status, social cultural situation, likely impact on the assets, and other impacts (negative and positive) will be collected. In addition, separate group meetings will be organized with IP community leaders, as well as separately for men and women. Discussion will be focused on the positive and negative impacts of the Project, a needs assessment, and local expectations of the Project. If the SIA identifies significant Project negative impacts on IPs, an IPP will be prepared to address the impacts and distribution of Project benefits and measures to promote the socio-economic development of the IPs.
41. The DDC/DTO/DPO will undertake an SIA as part of the detailed feasibility/design of the subproject. The SIA will gather relevant information on demographic data; social, cultural and economic situation; and social, cultural and economic impacts. The information will be gathered through separate group meetings within the IP community, including their leaders, NGOs, CBOs, and affected persons. Discussions will focus on potential positive and negative impacts of the subproject; measures to enhancing positive impacts; and strategies/options to minimize and/or mitigate negative impacts.
b. Preparation of IPPs
42. Based on the SIA, the project will develop appropriate mitigation measures and livelihood enhancement activities for IPs. In case of limited impacts, specific actions for IPs will be spelled out in resettlement plan and/or social action plan for the subproject. If SIA identifies the project will have significant differential impact compared to the mainstream population, an IPP will be prepared to enhance distribution of project benefits and promote the development of IPs.
43. The basic objective of the IPP is to ensure that these communities receive benefits from the project that are at least par or better than those received by other people in the community. If the tribal communities lose land, structures, or other assets, the project will ensure that they will be properly compensated. The compensation measures will be mentioned in the IPPF prepared for the Project.
44. The IPP will consist of a number of activities and include mitigation measures of the potential negative impacts through modification of project design and development assistance to enhance distribution of project benefits. Where there is land acquisition or structural losses in the ethnic/indigenous communities, the Project will ensure that their rights will not be violated and that they be compensated for the use of any part of their land in a manner that is culturally acceptable to them. The compensation measures will follow the Resettlement Framework of the Project.
45. An IPP will addresses the (i) aspirations, needs, and preferred options of the affected indigenous peoples; (ii) local social organization, cultural beliefs, ancestral territory, and resource use patterns among the affected indigenous peoples; (iii) potential positive and negative impacts on indigenous peoples; (iv) measures to avoid, mitigate, or compensate for the adverse project effects; (v) measures to ensure project benefits will accrue to indigenous peoples; (vi) measures to strengthen DDC/DTO capacity to address indigenous peoples issues; (vii) the possibility of involving local organizations and non-governmental organizations with expertise in indigenous peoples issues; (viii) budget allocation; and (ix) monitoring. The PCU will submit the IPP to ADB for review and approval prior to commencement of civil works. ADB will review and send comments within three weeks.
ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 11 Final Report – Linked Document 10: Indigenous Peoples’ Planning Framework
c. Involvement of NGOs
46. A local NGO will be appointed and will play an intermediary role in the community. IP community participation is very important in developing, implementing, and monitoring the Project‟s planned activities, for reducing poverty and improving access to economic and social services as well as increasing the social and financial capital in the Project area.
47. The NGO will facilitate the community and mobilize them in various activities of the project. It will undertake various training programs associated to income generation activities by educating the IPs. The NGO will play the following role in performing the main activities:
o Arranging awareness program; o Collection of household information to assist design; o Conducting Focus Group Discussion (FGD) and social mapping; o Facilitating land acquisition; o Facilitating in the implementation of resettlement and rehabilitation plan; o Facilitating formation of Village Work and Road Coordination Committee (VWRCC); o Facilitating the formation of grievance resolution committee in local level; o Conducting training program to strengthen DDC; and o Conducting internal monitoring. B. Key Positive and Negative Project Impacts on IP
48. Impacts on IPs, whether positive or negative, are generally not different from those on others with the same socio-economic status and land size, like Dalits or poor Chhetris, because most IPs do not have different types of livelihoods from those other groups. This has been verified by preparation of DRILP. Inclusion of IPs in the sub-projects is expected to be high, as the project targets geographically marginal rural in Western and Central and Eastern regions mountain and hill areas where IPs dominate in terms of community population. The sub-projects are also community-driven, that is, a sub-project will not be prepared unless it has been requested by the community, and it meets screening criteria which includes a requirement that the community is able to form a community mechanism for sub-project implementation which has a fair system of grievance redressal, as well as a system for project monitoring and reporting (through the Resettlement Framework). Through improved connectivity, the project will improve livelihoods for all beneficiaries, including IPs.
49. IPs are not expected to be affected seriously or at all by the project whether it is through loss of livelihoods, displacement or impacts on their social and cultural identity. The feasibility study raised the following impacts that might be IP specific, which were addressed through changes to project design or introduction of relevant safeguards.
50. All these concerns are very similar to those of non-indigenous vulnerable groups, notably Dalits, other ultra poor and to less extent women. As such the ensuing project is therefore not expected to impact IPs differently than those other vulnerable groups, and issues of gender, land acquisition and participation can be dealt with under the project Gender, RF and through extensive consultation and participation. Each subproject will be screened against the sub-project selection criteria once it is nominated by the beneficiaries themselves. This process ensures that no IP plans or specific actions will be required for any sub-project.
ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 12 Final Report – Linked Document 10: Indigenous Peoples’ Planning Framework
1. Possible Negative Project Impacts on IPPs
51. The following may be the possible negative Project impacts:
o Loss of land and structures; o Loss of agricultural production; o Displacement; o Spread of HIV/AIDS/STDs; o Loss of livelihood; and o Changes to subsistence levels and income generating capacity.
2. Possible IPP Mitigation Measures
52. The following measures are recommended for the socio-economic development of the IPs:
o Compensation for the lost assets (land, structures, business etc.) and production; o Resettlement and Rehabilitation, if required; o Involvement in the decision making process during project design, implementation (in each phase of the Project); o Representation in VWRCC, Grievance Resolution Committee; and o Specific program to the most vulnerable IPs living in the Project areas: Priority in the construction employment; Preference of employment in the governmental and NGOs based on their qualifications; Training programs and skill development schemes for income generation; Support for agriculture extension, livestock rearing, cottage industries; Credit capital at low rate of interest for entrepreneurial activities; and Preservation of social, religious, and cultural heritage. 53. One IPP possibility will be addressing the difficulty for the local people to get access to credit facilities for new economic initiatives. This will be addressed by allocating some small proportion of Project funds to providing “seed money” on credit at concessional terms. When repaid, such funds will then be recycled within the district for additional such initiatives. This revolving fund mechanism can best be managed by the district administration, possibly in conjunction with an appropriate NGO in each of the 18 districts. Within an IPP, the IPs will be given priority access to such Project funds.
54. Similarly, IPPs may provide priority access for targeted IP groups to Supplementary Investment Schemes (SIS) that are small community infrastructure such as water supply, irrigation, micro-hydro power schemes, community/market buildings, health sub-posts, primary schools etc. A number of capacity building activities will enhance skills. Together, these initiatives will provide at local level employment opportunities, empower rural communities for development, increase institutional capacity and improve accountability and transparency. The SIS will enhance the impact of improved access on rural livelihoods and help in mitigating any negative impacts identified for IP communities. These may be funded from existing Project funds. ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 13 Final Report – Linked Document 10: Indigenous Peoples’ Planning Framework
V. CONSULTATION AND PARTICIPATION
55. The Project Coordination Unit (PCU) of DOLIDAR, which is the Executing Agency (EA) along with the DDCs (who are the Implementing Agencies - IAs), will be responsible for the implementation of the Project. It will coordinate all activities related to resettlement and IP‟s issues. The IA will hire local and experienced NGOs to assist in planning and implementation of the IPP.
56. The IPP will be prepared in consultation with the affected IP groups. The issues and measures will be disclosed during the local level workshop to get their feedback and to make the IPP more pragmatic.
57. The existing indigenous people‟s institution and other organizations will be involved in the implementation of IPP. This will help in resolution of the dispute or grievances arise during the implementation. The IA will ensure that there will be sufficient budget available for the implementation of the IPP.
58. The consultation with and participation of IPs will be ensured in formulation of subproject to ensure that it adequately deal with their needs, priorities, and preference. The IPs will be provided relevant project information in language(s) and manner suitable to them. A separate focus group discussions will be held with indigenous groups to assess the project impacts and benefits to these groups. Accordingly, the project plans, including IP plans, will be prepared in consultation with IPs. Outcome of social assessment and programs/measures for IPs will be presented in community workshops/meetings.
VI. DISCLOSURE
59. The DDC/DTO/DPO shall make available the following documents to the project affected indigenous peoples and disclose to the public:
o A draft IPP, before subproject appraisal; o A final IPP, after completion of such an IPP; and o The revised IPP, following the detailed technical design or change in scope in the subproject. 60. The information from the documents specified above will be made available to affected persons as leaflets in Nepali and, as feasible, in the local IP language. DOLIDAR shall also post the above documents on its website. During implementation, DPO will prepare social monitoring reports, make them available to affected IPs, post them on its website, and submit these to ADB for review.
VII. GRIEVANCE REDRESS MECHANISM
61. The IP Grievance Redress Mechanism will be the same as set out in the Resettlement Framework (RF). The Project has set a Grievance Redress Committee at the district and Grievance Redress sub-committee at VDC to hear complaints. The GRC at district level will be established under the chairmanship of DDC head; other members of the committee will be the representatives of affected families (including BG member); representative from VDC; village elders or local level representatives of mass organizations; or, as applicable, relevant IP NGOs and agencies; the Project manager, Social mobilization coordinator.
62. As indicated above, the existing indigenous people‟s institution and other organizations will be involved in the planning and implementation of any required IPP. This will help in resolution of the dispute or grievances arise during the implementation. The IA will ensure that there will be sufficient budget available for the implementation of any required IPP. ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 14 Final Report – Linked Document 10: Indigenous Peoples’ Planning Framework
63. The APs, including IPs, may submit their concerns or grievances verbally or in writing to this Committee. All complaints/grievances will be documented properly by the Committee. The Committee shall make field-based assessment to verify/examine the grievances, if necessary. After proper examination/verification of the grievances, the Committee shall facilitate DDC, DPs, and other concerned parties to agree on a time-bound action plan to resolve the grievance if found to be genuine.
64. The VWRCC will also help to solve the local problems. A villager can approach the VWRCC with an individual problem or complaint which is then discussed locally with the aim to settle the issues at local level. Each VWRCC has its sub-committees in each VDC comprising five members, including APs, to hear complaints and grievances at the VDC level. The Committee comprises three members from VWRCC and two representatives from among the DPs.
65. Because marginal or disadvantaged IPs, low caste and very poor tend not to complain to the official hierarchy, the presence of Project social mobilizers will facilitate access to the official system for the poor, low caste and disadvantaged and have the effect of making the process more transparent. Social mobilizers will also enable greater and fairer negotiations with the project over minor compensation arrangements.
VIII. INSTITUTIONAL AND IMPLEMENTATION ARRANGEMENTS
66. A Social Development Specialist will be placed in the CISC and if required a Social Development Officer will be placed in the DISC to support PCU and DPO to implement IPP activities. The social mobilization team at the DIST level will assist in the planning and implementation of IPP.
IX. MONITORING AND REPORTING ARRANGEMENTS
67. Both internal and external monitoring will be done during the implementation of IPP. The Project staff, NGOs, affected IP groups and Dalits related local organizations will be involved in the monitoring system. A set of monitoring indicators will be established to know the implementation status of the IPP. An independent external agency will carry out the monitoring of IPP implementation.
68. The PCU will establish a trimester monitoring system to monitor the implementation of the IPP. A set of monitoring indicators will be determined during IPP preparation. A survey of existing socio-economic status and cultural practices of IPs/Dalits, which will be carried out during subproject feasibility study/design, will be the basis for establishing the baseline data to monitor the project impacts on IPs. The IPP will also specify the system to collect data and monitor the changes and will include TOR for monitoring agency/consultant. The PCU will prepare quarterly monitoring reports, post them on its DOLIDAR's website, and submit to ADB for its review.
X. BUDGET AND FINANCING
69. All the costs required to implement the IPPs will be incorporated in the Project cost under the Community Development and Rural Livelihood Restoration Component, along with the Social Action Plan (SAP). The IPP/SAP will include detailed cost estimate and indicate source of funds for the required activities. While the administrative costs for surveys, social assessment, and preparation of the IPP will be financed under Project Management Services, the program cost will be financed from the Community Development and Rural Livelihood Restoration Project component. ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 15 Final Report – Linked Document 10: Indigenous Peoples’ Planning Framework
ATTACHMENT 1: OVERALL ETHNIC DISTRIBUTION IN PROJECT DISTRICTS
The following table, based on the 2001 Census,7 summarizes ethnic distribution in the 18 subprojects. There are larger numbers of identified ethnic groups in the (a) Central and Eastern Districts than in the (b) Western; Karnali; and Mid and Far Western Districts, 12-14 identified groups in the former (a) and 8 in the latter (b) districts. The data is based on an ISRC summary of the Census 2001,8 so it‟s likely that the 2001 Census data identified more Ethnic Groups than shown here.
In Karnali Districts (the mountain districts such as Dolpa, Jumla, Kalikot and Mugu), as many as 90 percent of the population is not identified, and in Kalikot groups are not categorized. Dalits, such as the Kami who are the most populous Dalit group, are a small minority in most Project districts, but in Myagdi and Jajarkot, Kami are as much as 13 and 20 percent of the district population respectively.
IPs are the majority the Central and Eastern project districts of Taplejung (Limbu, 41.75%), Solukhumbu (Rai, 31.49% along with Sherpa, 18.30%), and Western project districts, Baglung (Magar 27.72%), Gorkha (Gurung 22.30%), Lamjung (Gurung 31.69%), and Myagdi (Magar 41.78%). In Karnali and further westward, it is „Caste‟ people who are the district majorities.
Table A10.4: Ethnic Distribution in Project Districts by Population and Percent No. Caste/Ethnic Group Population Percent CENTRAL AND EASTERN (1) Taplejung (Mountain) 1 Limbu 56,234 41.75 2 Chetri 15,982 11.87 3 Brahmin (Hill) 13,974 10.37 4 Sherpa 12,585 9.34 5 Rai 6,779 5.03 6 Gurung 6,077 4.51 7 Kami 5,949 4.42 8 Tamang 5,530 4.11 9 Newar 2,242 1.66 10 Dhamai/Kami 2,115 1.57 11 Sunuwar 1,303 0.97 12 Magar 1,151 0.85 13 Other 4,777 3.55 Subtotal 134,698 100.00 (2) Ramechhap (Hill) 1 Chetri 56,155 26.44
7 Central Bureau of Statistics, Ramshah Path, Kathmandu, Nepal: Statistical Pocket Book Nepal, 2002. 8 ISRC. 2010. District and VDC Profile of Nepal (A Socio-Economic Development Database of Nepal). Kathmandu: Intensive Study and Research Centre (ISRC). Based on 2001 Census. ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 16 Final Report – Linked Document 10: Indigenous Peoples’ Planning Framework
No. Caste/Ethnic Group Population Percent 2 Tamang 43,669 20.56 3 Newar 29,931 14.09 4 Magar 23,205 10.92 5 Brahmin (Hill) 11,969 5.63 6 Sunuwar 8,860 4.17 7 Kami 6,434 3.03 8 Sarki 5,597 2.64 9 Majhi 5,512 2.60 10 Sherpa 4,669 2.20 11 Damai/Dholi 3,993 1.88 12 Gharti/Bhujel 2,988 1.41 13 Other 9,426 4.43 Subtotal 212,408 100.00 (3) Solukhumbu (Mountain) 1 Rai 33,905 31.49 2 Sherpa 19,706 18.30 3 Chetri 16,366 15.20 4 Tamang 10,153 9.43 5 Kami 5,745 5.33 6 Brahmin (Hill) 5,519 5.13 7 Magar 4,950 4.60 8 Newar 2,732 2.54 9 Damai 1,727 1.60 10 Ghartil/Bhujel 1,630 1.51 11 Gurung 1,155 1.07 12 Unidentified Caste 1,100 1.02 13 Other 2,998 2.78 Subtotal 107,686 100.00 (4) Okhaldhunga (Hill) - 1 Chetri 38,488 24.56 2 Rai 18,701 11.93 5 Brahmin (Hill) 18,623 11.88 6 Magar 16,252 10.37 7 Tamang 14,371 9.17 ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 17 Final Report – Linked Document 10: Indigenous Peoples’ Planning Framework
No. Caste/Ethnic Group Population Percent 8 Newar 10,046 6.41 9 Sherpa 9,443 6.03 10 Kami 5,986 3.82 11 Sunuwar 5,598 3.57 12 Damai/Dholi 4,466 2.85 13 Sarki 3,714 2.37 14 Gharti/Bhujel 3,260 2.08 15 Other 7,754 4.96 Subtotal 156,702 100.00 WESTERN (5) Baglung (Hill) 1 Magar 74,550 27.72 2 Brahmin (Hill) 59,532 22.14 3 Chetri 51,871 19.29 4 Kami 35,150 13.07 5 Sarki 11,699 4.35 6 Damai/Dholi 10,623 3.95 7 Thakuri 4,117 1.53 8 Chhantel 4,047 1.50 9 Other 17,348 6.45 Subtotal 268,937 100.00 (6) Gorkha (Hill) 1 Gurung 64,240 22.30 2 Brahmin (Hill) 51,691 17.94 3 Chetri 34,833 12.09 4 Magar 32,678 11.34 5 Newar 23,375 8.11 6 Sarki 16,781 5.82 7 Kami 13,431 4.66 8 Tamang 9,184 3.19 9 Other 41,921 14.55 Subtotal 288,134 100.00 (7) Lamjung (Hill) 1 Gurung 56,140 31.69 ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 18 Final Report – Linked Document 10: Indigenous Peoples’ Planning Framework
No. Caste/Ethnic Group Population Percent 2 Chetri 28,051 15.83 3 Brahmin (Hill) 26,355 14.88 4 Kami 13,159 7.43 5 Tamang 11,919 6.73 6 Sarki 6,861 3.87 7 Newar 6,739 3.80 8 Damai/Dholi 6,021 3.40 9 Other 21,904 12.37 Subtotal 177,149 100.00 (8) Myagdi (Hill) 1 Magar 47,820 41.78 2 Chetri 18,846 16.47 3 Kami 15,273 13.35 4 Brahmin (Hill) 8,945 7.82 5 Damai/Dholi 5,180 4.53 6 Chhantel 4,462 3.90 7 Sarki 3,222 2.82 8 Thakuri 2,289 2.00 9 Other 8,410 7.33 Subtotal 114,447 100.00 KARNALI (9) Dolpa (Mountain) 1 Chetri 9,687 32.79 2 Gurung 4,993 16.90 3 Magar 2,902 9.82 4 Kami 1,288 4.36 5 Thakuri 822 2.78 6 Brahmin (Hill) 579 1.96 7 Sherpa 480 1.62 8 Tamang 237 0.80 9 Other 8,557 28.97 Subtotal 29,545 100.00 (10) Humla (Mountain) 1 Chetri 17,781 43.80 ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 19 Final Report – Linked Document 10: Indigenous Peoples’ Planning Framework
No. Caste/Ethnic Group Population Percent 2 Thakuri 7,955 19.60 3 Sherpa 5,666 13.96 4 Brahmin (Hill) 2,547 6.27 5 Kami 2,008 4.95 6 Unidentified Dalit 1,414 3.48 7 Damai/Dholi 1,104 2.72 8 Bhote 574 1.41 9 Other 1,546 3.81 Subtotal 40,595 100.00 (11) Jumla (Mountain) 1 Chetri 43,697 48.86 2 Brahmin (Hill) 6,601 7.38 3 Sarki 4,470 5.00 4 Thakuri 3,924 4.39 5 Kami 3,589 4.01 6 Damai/Dholi 1,442 1.61 7 Unidentified Dalit 1,297 1.45 8 Sonar 1,080 1.21 9 Other 23,327 26.09 Subtotal 89,427 100.00 (12) Kalikot (Mountain) 1 Brahmin (Hill) 3,164 3.00 2 Thakuri 2,500 2.37 3 Kami 2,485 2.35 4 Chetri 1,743 1.55 5 Other 95,688 90.73 Subtotal 105,580 100.00 (13) Mugu (Mountain) 1 Chetri 13,939 31.72 2 Thakuri 5,348 12.17 3 Unidentified Dalit 5,129 11.67 4 Sherpa 3,188 7.26 5 Brahmin (Hill) 1,367 3.11 6 Tamang 991 2.26 ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 20 Final Report – Linked Document 10: Indigenous Peoples’ Planning Framework
No. Caste/Ethnic Group Population Percent 7 Kami 934 2.13 8 Sanyasi 166 0.38 9 Other 12,875 29.3 Subtotal 43,937 100.00 MID AND FAR WESTERN (14) Jajarkot (Hill) 1 Chetri 51,847 38.44 2 Kami 26,603 19.73 3 Thakuri 22,928 17.00 4 Magar 11,721 8.69 5 Brahmin (Hill) 6,850 5.08 6 Damai/Dholi 5,184 3.84 7 Sanyasi 2,453 1.82 8 Sarki 1,795 1.33 9 Other 5,517 4.07 Subtotal 134,898 100.00 (15) Baitadi (Hill) 1 Chetri 112,794 48.12 2 Brahmin (Hill) 44,350 18.92 3 Thakuri 19,284 8.23 4 Kami 14,360 6.13 5 Lohar 10,821 4.62 6 Sarki 7,436 3.17 7 Unidentified Caste 4,463 1.90 8 Unidentified Dalit 3,872 1.65 9 Other 17,038 7.26 Subtotal 234,418 100 (16) Bajhang (Mountain) 1 Chetri 106,775 63.93 2 Brahmin (Hill) 18,010 10.78 3 Kami 13,201 7.90 4 Thakuri 9,376 5.61 5 Sarki 4,630 2.77 6 Damai/Dholi 3,637 2.18 ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 21 Final Report – Linked Document 10: Indigenous Peoples’ Planning Framework
No. Caste/Ethnic Group Population Percent 7 Unidentified Dalit 3,440 2.06 8 Sanyasi 2,180 1.31 9 Other 5,777 3.46 Subtotal 167,026 100.00 (17) Bajura (Mountain 1 Chetri 55,887 51.38 2 Kami 9,498 8.73 3 Brahmin (Hill) 6,936 6.38 4 Thakuri 6,451 5.93 5 Damai/Dholi 4,024 3.70 6 Unidentified Dalit 3,963 3.64 7 Sarki 3,557 3.27 8 Sanyasi 2,966 2.74 9 Other 15,499 14.23 Subtotal 108,781 100.00 (18) Darchula (Mountain) 1 Chetri 73,254 60.05 2 Brahmin (Hill) 22,531 18.47 3 Thakuri 8,048 6.60 4 Kami 6,449 5.29 5 Lohar 2,666 2.19 6 Sarki 2,194 1.80 7 Sanyasi 1,864 1.53 8 Byangshi 946 0.78 9 Other 4,044 3.29 Subtotal 121,996 100.00
ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 22 Final Report – Linked Document 10: Indigenous Peoples’ Planning Framework
ATTACHMENT 2: GENERAL IP BACKGROUND IN NEPAL
Nepali or Nepalese are descendants of migrants from parts of earlier Greater Nepal, Tibet, India, and parts of Burma and Yunnan, along with native tribal population. Among the earliest inhabitants were the Kirat of east mid-region, Newar of the Kathmandu Valley, and aboriginal Tharu in the malarial southern Terai region. The ancestors of the Khas (Bahun, Chetri, Thakuri, Sanyasi, and Dalit) migrated eastward along the Himalayan foothills out of Kashmir, Kumaon, Garhwal, parts of the then Greater Nepal, Karnali Pradesh (Nepal) and perhaps also north from the Gangeatic Plains during invasions. Other ethnic groups trace their origins to North Burma, Yunnan, and Tibet, for example the Gurung and Magar in the west, Rai and Limbu in the east, and Sherpa and Tamang in the north.
In the Terai, a part of the Ganges Basin with 20% of the land, much of the population is physically and culturally similar to the Indo-Aryans of northern India. Indo-Aryan and East Asian looking mixed people live in the hill region. The mountainous region is sparsely populated above 3,000 meters, but in central and western Nepal ethnic Tibetans inhabit even higher semi-arid valleys north of the high Himalaya. Kathmandu Valley, in the middle hill region, constitutes a small fraction of the nation's area but is the most densely populated, with almost 5 percent of the nation's population. Nepal is a multilingual, multi-religious and multiethnic society.9
Religion is important in Nepal; the Kathmandu Valley alone has more than 2,700 religious shrines. The constitution of Nepal describes the country as a "Hindu kingdom", although it does not establish Hinduism as the state religion. Nepal's constitution continues long- standing legal provisions prohibiting discrimination against other religions (but also prohibiting seeking new converts). The king was deified as the earthly manifestation of the Hindu god Vishnu. Then, on 19 May 2006, the government facing a constitutional crisis, the House of Representatives which had been just reformed, having been previously dissolved, declared Nepal a "secular state".
A. General Ethnicity in Nepal
The major caste/ethnic groups identified by the 2001 census are Khas (Kshatriya or Chetri (15.8%) along with 1.47% Thakuri/Chetri, Brahmin or Bahun (12.7%) in the hills (both Caucasian, counted separately from the same castes in the Terai)), Magar (7.1%), Tharu (6.8%), Tamang (5.6%), Newar (5.5%), Muslim (4.3%), Kami (3.9%), Rai (2.7%), Gurung (2.5%), and Damai/Dholi (2.4%). The remaining 92 caste/ethnic groups (including the world- famous Sherpa) each constitute less than 2 % of the population. The following table is based on endogamous ethnicity, some 102 classifications, not linguistic ethnic groups.
9 http://en.wikipedia.org/wiki/Demographics_of_Nepal ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 23 Final Report – Linked Document 10: Indigenous Peoples’ Planning Framework
Table A10.5: Population and Percentage of Endogamous Ethnicity of Nepal’s Total Population No. Caste/Ethnic Group Population % of Total
1 Khas Kshatriya/Chetri 3,593,496 15.80
2 Khas Brahmin/Bahun 2,896,477 12.74
3 Magar 1,622,421 7.14
4 Tharu 1,533,879 6.75
5 Tamang 1,282,304 5.64
6 Newar 1,245,232 5.48
7 Muslim 971,056 4.27
8 Kami 895,954 3.94
9 Yadav 895,423 3.94
10 Rai 635,151 2.79
11 Gurung 686,000 2.39
12 Damai/Dholi 390,305 1.72
13 Limbu 359,379 1.58
14 Khas - Thakuri/Chetri 334,120 1.47
15 Sarki 318,989 1.40
16 Teli 304,536 1.34
17 Chamar, Harijan, Ram 269,661 1.19
18 Koiri 251,274 1.11
19 Kurmi 212,842 0.94
20 Khas-Sanyasi 199,127 0.88
21 Dhanuk 188,150 0.83
22 Musahar 172,434 0.76
23 Dusad/Paswan/Pasi 158,525 0.70
24 Sherpa 154,622 0.68
25 Sonar 145,088 0.64
26 Kewat 136,953 0.60
27 Terai-Brahmin 134,496 0.59
28 Baniya 126,971 0.56
29 Gharti/Bhujel 117,568 0.52 ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 24 Final Report – Linked Document 10: Indigenous Peoples’ Planning Framework
No. Caste/Ethnic Group Population % of Total
30 Mallah 115,986 0.51
31 Kalwar 115,606 0.51
32 Kumal 99,389 0.44
33 Hajam/Thakur 98,169 0.43
34 Kanu 95,826 0.42
35 Rajbansi 95,812 0.42
36 Sunuwar 95,254 0.42
37 Sudhi 89,846 0.40
38 Lohar 82,637 0.36
39 Tatma 76,512 0.34
40 Khatwe 74,972 0.33
41 Dhobi 73,413 0.32
42 Majhi 72,614 0.32
43 Nuniya 66,873 0.29
44 Kumhar 54,413 0.24
45 Danuwar 53,229 0.23
46 Chepang 52,237 0.23
47 Haluwai 50,583 0.22
48 Rajput 48,454 0.21
49 Kayastha 46,071 0.20
50 Budhae 45,975 0.20
51 Marwadi 43,971 0.19
52 Santhal/Satar 42,698 0.19
53 Dhagar/Jhagar 41,764 0.18
54 Bantar 35,839 0.16
55 Barae 35,434 0.16
56 Kahar 34,531 0.15
57 Gangai 31,318 0.14
58 Lodha 24,738 0.11
59 Rajbhar 24,263 0.11 ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 25 Final Report – Linked Document 10: Indigenous Peoples’ Planning Framework
No. Caste/Ethnic Group Population % of Total
60 Thami 22,999 0.10
61 Dhimal 19,537 0.09
62 Bhote 19,261 0.08
63 Bing/Binda 18,720 0.08
64 Bhediyar/Gaderi 17,729 0.08
65 Nurang 17,522 0.08
66 Yakkha 17,003 0.07
67 Darai 14,859 0.07
68 Tajpuriya 13,250 0.06
69 Thakali 12,973 0.06
70 Chidimar 12,296 0.05
71 Pahari 11,505 0.05
72 Mali 11,390 0.05
73 Bangali 9,860 0.04
74 Chhantyal 9,814 0.04
75 Dom 8,931 0.04
76 Kamar 8,761 0.04
77 Bote 7,969 0.04
78 Brahmu/Baramu 7,383 0.03
79 Gaine/Gandarbha 5,887 0.03
80 Jirel 5,316 0.02
81 Adivasi/Janajati 5,259 0.02
82 Duga 5,169 0.02
83 Churaute 4,893 0.02
84 Badi 4,442 0.02
85 Meche 3,763 0.02
86 Lepcha 3,660 0.02
87 Halkhor 3,621 0.02
88 Punjabi/Sikh 3,054 0.01
89 Kisan 2,876 0.01 ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 26 Final Report – Linked Document 10: Indigenous Peoples’ Planning Framework
No. Caste/Ethnic Group Population % of Total
90 Raji 2,399 0.01
91 Byangsi 2,103 0.01
92 Hayu 1,821 0.01
93 Koche 1,429 0.01
94 Dhunia 1,231 0.01
95 Walung 1,148 0.01
96 Jaine 1,015 0.00
97 Munda 660 0.00
98 Raute 658 0.00
99 Yehlmo 579 0.00
100 Patharkata/Kuswadiya 552 0.00
101 Kusunda 164 0.00
102 Khas - Dalit/Unidentified 173,401 0.76
103 Unidentified Caste/Ethnicity 231,641 1.02
TOTAL 22,736,934 100.00
B. Ethnic and Regional Equity in Nepal
Hill Hindus of the Khas tribe (Brahman and Chetri castes – B/C) and the Newar ethnicity dominated the civil service, the judiciary and upper ranks of the army throughout the Shah regime 1768-2008. Nepali was the national language and Sanskrit became a required school subject. Children who spoke Nepali natively and who were exposed to Sanskrit had much better chances of passing the national examinations at the end of high school, which meant they had better employment prospects and could continue into higher education. Children who natively spoke local languages of the Terai and Hills, or Tibetan dialects prevailing in the high mountains were at a considerable disadvantage. This history of exclusion coupled with poor prospects for improvement created grievances that left ethnic communities such as Tharu in the Terai and Kham Magar in the mid-western hills receptive to recruitment as foot soldiers for the Maoist opposition in the Nepalese civil conflict. The negotiated end to this war forced King Gyanendra to abdicate in 2008. Issues of ethnic and regional equity have tended to dominate the agenda of the new republican government and continue to be divisive. ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 27 Final Report – Linked Document 10: Indigenous Peoples’ Planning Framework
ATTACHMENT 3: OUTLINE OF AN INDIGENOUS PEOPLES PLAN (FROM ADB’S SPS)
This outline is part of the Safeguard Requirements 3. An Indigenous Peoples plan (IPP) is required for all projects with impacts on Indigenous Peoples. Its level of detail and comprehensiveness is commensurate with the significance of potential impacts on Indigenous Peoples. The substantive aspects of this outline will guide the preparation of IPPs, although not necessarily in the order shown.
A. Executive Summary of the Indigenous Peoples Plan
This section concisely describes the critical facts, significant findings, and recommended actions.
B. Description of the Project
This section provides a general description of the project; discusses project components and activities that may bring impacts on Indigenous Peoples; and identify project area.
C. Social Impact Assessment
This section:
(i) reviews the legal and institutional framework applicable to Indigenous Peoples in project context; (ii) provides baseline information on the demographic, social, cultural, and political characteristics of the affected Indigenous Peoples communities; the land and territories that they have traditionally owned or customarily used or occupied; and the natural resources on which they depend; (iii) identifies key project stakeholders and elaborate a culturally appropriate and gender- sensitive process for meaningful consultation with Indigenous Peoples at each stage of project preparation and implementation, taking the review and baseline information into account; and (iv) assesses, based on meaningful consultation with the affected Indigenous Peoples communities, the potential adverse and positive effects of the project. Critical to the determination of potential adverse impacts is a gender-sensitive analysis of the relative vulnerability of, and risks to, the affected Indigenous Peoples communities given their particular circumstances and close ties to land and natural resources, as well as their lack of access to opportunities relative to those available to other social groups in the communities, regions, or national societies in which they live;
(v) includes a gender-sensitive assessment of the affected Indigenous Peoples‟ perceptions about the project and its impact on their social, economic, and cultural status; and
(vi) identifies and recommends, based on meaningful consultation with the affected Indigenous Peoples communities, the measures necessary to avoid adverse effects or, if such measures are not possible, identifies measures to minimize, mitigate, and/or compensate for such effects and to ensure that the Indigenous Peoples receive culturally appropriate benefits under the project.
D. Information Disclosure, Consultation and Participation
This section:
(i) describes the information disclosure, consultation and participation process with the affected Indigenous Peoples communities that was carried out during project preparation; ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 28 Final Report – Linked Document 10: Indigenous Peoples’ Planning Framework
(ii) summarizes their comments on the results of the social impact assessment and identifies concerns raised during consultation and how these have been addressed in project design;
(iii) in the case of project activities requiring broad community support, documents the process and outcome of consultations with affected Indigenous Peoples communities and any agreement resulting from such consultations for the project activities and safeguard measures addressing the impacts of such activities;
(iv) describes consultation and participation mechanisms to be used during implementation to ensure Indigenous Peoples participation during implementation; and
70. (v) confirms disclosure of the draft and final IPP to the affected Indigenous Peoples communities.
E. Beneficial Measures
This section specifies the measures to ensure that the Indigenous Peoples receive social and economic benefits that are culturally appropriate, and gender responsive.
F. Mitigation Measures
This section specifies the measures to avoid adverse impacts on Indigenous Peoples; and where the avoidance is impossible, specifies the measures to minimize, mitigate, and compensate, for identified unavoidable adverse impacts for each affected Indigenous Peoples groups.
G. Capacity Building
This section provides measures to strengthen the social, legal, and technical capabilities of (a) government institutions to address Indigenous Peoples issues in the project area; and (b) Indigenous Peoples organizations in the project area to enable them to represent the affected Indigenous Peoples more effectively.
H. Grievance Redress Mechanism
This section describes the procedures to redress grievances by affected Indigenous Peoples communities. It also explains how the procedures are accessible to Indigenous Peoples and culturally appropriate and gender sensitive.
I. Monitoring, Reporting and Evaluation
This section describes the mechanisms and benchmarks appropriate to the project for monitoring, and evaluating the implementation of the IPP. It also specifies arrangements for participation of affected Indigenous Peoples in the preparation and validation of monitoring, and evaluation reports.
Decentralized Rural Infrastructure and Livelihoods Project II (DRILP II) (ADB TA No. 7573-NEP)
FINAL REPORT - Linked Document 11 – Risk Assessment & Risk Management Plan
Prepared for the Asian Development Bank and Government of Nepal
ANZDEC Limited in association with Consolidated Management Services Nepal (P) Ltd. August 2011
ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 1 Final Report – Linked Document 11: Risk Assessment & Risk Management Plan
RISK ASSESSMENT AND RISK MANAGEMENT PLAN
Assessment without Assessment Risks Management Plan or Measures Mitigation with Mitigation Project Implementation 1. Political willingness and capacity to reduce Medium - High Assurances from the government to Low - Medium the influence of transport syndicates and monitor the rural transport services cartels sector, and take action under existing legislation to curb any anti-competitive Indicators: activities of transport syndicates and cartels Limited numbers of rural transport service providers High transport costs 2. Community support for proposed Medium Social mobilization of communities in Low investments not forthcoming impact zones VDCs to augment Indicators: Delays in subproject design and implementation 3. Contractors unwilling to operate in more Low - Medium Promotion of BGs in construction works Low remote areas, high contract prices, and/or Additional quality control resources (in failure to complete contracts the CISC) will be provided to improve the design and construction standards of Indicators: works undertaken Delays in subproject implementation in remote districts Public Financial Management Preparation of SOEs manually at the PCU Medium Upgrade current computerized Low using documents sent by DDCs accounting system used by DDC to enable it to produce SOEs Indicators: Train staff at DDC in use of computers in Delays in constantly checking transactions general and the system in particular with the district reduced Delays in submission of the withdrawal application reduced Frequent staff transfers at the districts Medium - High Provide training on ADB procedures to Medium - Low ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 2 Final Report – Linked Document 11: Risk Assessment & Risk Management Plan
Assessment without Assessment Risks Management Plan or Measures Mitigation with Mitigation contribute to delays and errors all finance staff Encourage new officers to work Indicators: alongside the experienced officer for a SOEs and other information received from short time DDC on time Encourage DDCs not to transfer finance Any explanations dealt with expeditiously staff prior to the two year period in the duty station, Frequent staff transfers at the districts Medium - High Provide training on ADB procedures to all Medium - Low contribute to delays and errors finance staff Encourage new officers to work alongside Indicators: the experienced officer for a short time SOEs and other information received from Encourage DDCs not to transfer finance DDC on time staff prior to the two year period in the Any explanations dealt with expeditiously duty station Weak internal audit, control system and High Provide support to strengthen capacity of Medium follow-up action DTCO internal audit staff and DDC internal audit staff Carry out a Systems Indicators: Audit at regular intervals with the help of external resource personnel if required Financial irregularities reduced Internal audit quality improved Procurement 1. Collusion, bid rigging, cartels, physical High Introduce e-bidding system in DRILP, Medium threats from bidding parties, local goons Disqualify and blacklist the concerned contractors for future contract business, Indicators: Publish the name of such contractor/s in Efficient procurement system in place the media, Bid rigging and collusion practice reduced Provide training to staff of procurement Procurement professionals are trained for unit for efficient procurement practice efficient procurement practice and techniques, Instruction manual prepared after e-bidding Introduction of harsh penalty system in system the laws for bid rigging and corrupt practices 2. Risk of accepting sub-standard product or Medium Strengthen / widen role of project Low ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 3 Final Report – Linked Document 11: Risk Assessment & Risk Management Plan
Assessment without Assessment Risks Management Plan or Measures Mitigation with Mitigation services implementation consultant Introduce performance audit system, Indicators: Train officials in quality control Improvement in the quality of works as a measures, techniques and methodology whole Reports of public audits are made public Officials are equipped with modern technology, techniques ,skills to maintain the standard of the procured products 3. Contractors performance monitoring is Medium Monitoring unit of PCU and Low weak implementation consultant strengthened, Involve local users group and stake- Indicators: holders to work as watch dog for Performance monitoring system will be continuous monitoring of works, strengthened Monitoring unit officials are made more Improved quality of goods, services and liable for performance monitoring and works received by beneficiaries evaluation of the project work 4. Procurement units are not sufficiently High Improve procurement capacity ,provide Medium institutionalized routine procurement training to DOLIDAR officials, Indicators: Recommendations to create the position Qualified procurement officials will be in of Procurement Officer/other place procurement staff as necessary Procurement unit will be institutionalized after creating the position of different level of ‘procurement core staff’
Corruption 1. Political and bureaucratic intervention and High Organize local level awareness Medium patronage campaign in a routine manner against political patronage and bureaucratic Indicators: intervention, Increased number of investigation against Continued Coordination with civil society corruption cases and local level political parties ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 4 Final Report – Linked Document 11: Risk Assessment & Risk Management Plan
Assessment without Assessment Risks Management Plan or Measures Mitigation with Mitigation Corrupt practices are reduced 2. Lack of ethical values High Design code of ethics for related High organization staff and contracting parties Indicators: Conduct awareness program to raise Code of ethics and values prepared ethical values and norms with the support of civil society leaders against corruption Decreased number of corruption cases 3. Misuse of resources Medium Introduce and implement procurement Low plan, Indicator: Avoid unnecessary procurement, Unnecessary procurement discouraged and Harsh penalty system for violating the misuse of resources reduced procurement plan 4. Conflict of interest High Declaration of conflict of interest of the Medium project staff, Indicators: Certification by the Project Director on a Declaration of conflict of interest documents monthly basis on non existence of conflict of interest situation in the organization Reduced number of cases on conflict of interest Overall Medium - High Low - Medium BGs = Building Groups; DDC = District Development Committee; DOLIDAR = Department of Local Infrastructure Development and Agricultural Roads; District Treasury Comptroller’s Office (DTCO); PCU = Project Coordination Unit; SOE = Statement of Expenditures; VDCs = Village Development Committees Source: PPTA Consultants
Decentralized Rural Infrastructure and Livelihoods Project II (DRILP II) (ADB TA No. 7573-NEP)
FINAL REPORT - Linked Document 12 – Indicative List of DRILP II Subprojects
Prepared for the Asian Development Bank and Government of Nepal
ANZDEC Limited in association with Consolidated Management Services Nepal (P) Ltd. August 2011
ADB PPTA Decentralized Rural Infrastructure & Livelihoods Project II 1 Final Report – Linked Document 12: Indicative List of DRILP II Subprojects
Indicative List of Rural Road Subprojects in DRILP II
Indicative Subprojects Walkover Rapid Env. Initial Resettlement Feasibility Detailed Eng. Surveys, Design, Final IEE Final Districts ADB Approval (km) Survey Screening Plan Study Costing (NRs million), 2011 prices Report Resettlement Plan Yes Taplejung Dhungesangu-Dobhan (21.8 km) Yes Yes Yes Yes Yes Under process Yes (for Final IEE) 304 Yes Solukhumbu Garma-Nele-Budhidanda(17.4 km) Yes Yes Yes Yes Yes Under process Yes (for Final IEE) 119 Yes Okhaldhunga Rumjatar-Kartekhola (13.4 km) Yes Yes Yes Yes Yes Yes 107 2nd Phase RTI (Planned) Under process ADB concurrence to proceed Ramechhap Yes Yes Yes − − Pakarbas-Galpa (21 km) est. cost 122 to Eng. Surveys, Design, Cost Landslide/Bio-engineering Yes Gorkha Yes Yes Yes Yes Yes Yes DISC/CISC est. cost 31 Sundarbazar-Kunchha-Duipiple Yes Lamjung Yes Yes Yes Yes Yes Yes (7 km) Gravel Road 39 Baglung-Kusmisera (21.5 km) Yes Baglung Yes Yes Yes Yes Yes Yes Yes Gravel Road 246 Yes Myagdi Beni-Pakhapani (17.5 km) Yes Yes Yes Yes Yes Yes Yes 172 Yes No Jajarkot Cheda-Dhungel-Batule (20.4 km) Yes Yes Yes Underway Being finalized 282 ADB has commented on RP Yes Dolpa Dunai-Lesicape-Dho (15 km) Yes Yes Yes Yes Yes Yes 107 Thinke-Urthuchautara (4.5 km) Yes Yes Yes 26 Yes Yes Yes Jumla Kudari-Tamti-Topla (0.3 km) Yes Yes Yes 3 Yes Yes Yes Gamgadhi-Talcha-Rara (1km) Yes Yes Yes 14 Yes Yes Yes Mugu Kalakanda-Khamale-Kawa(20km) Yes Yes Yes 188 Yes Being finalized Yes - IEE; Comments on RP Yes Humla Simikot-Hilsa (3.5 km) Yes Yes Yes Yes Yes Yes 63 Rengil-Bhartadi (2.8 km) Yes Yes Yes 41 Kalikot Yes Yes Yes Bhartadi-Lainfu (7 km) Yes Yes Yes 42 Rupatola-Saipal (22 km) approx. No No Bajhang Yes Yes Yes Cost estimate 177 Conflict in the road alignment Yes Bajura Barahbise-Aatichaur (7.7 km) Yes Yes Yes Yes Yes Yes Yes 64 Kotila-Hat (9.5 km) Yes Yes Yes 89 Yes Yes Yes Baitadi Salena-Melauli (11 km link road) Yes Yes Yes 128 Yes Yes Yes Yes Darchula Khara-Khalanga (18.6 km) Yes Yes Yes Yes Being finalized Yes - IEE; Comments on RP 74 Total length: 260 km Total Cost Estimate: NRs 2,438 million
Notes: (i) Bajhang cost based on PPTA cost estimate (ii) Bajura cost estimate from DISC/CISC; PPTA recommends the design and costing of this subproject be reviewed