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Ashoka Ranastalam Anandapuram Road Limited (Part 1 of 4)

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Ashoka Ranastalam Anandapuram Road Limited (Part 1 of 4) Environmental and Social Due Diligence Report Project Number: 47083-004 December 2019 INDIA: Accelerating Infrastructure Investment Facility in India – Tranche 3 Ashoka Ranastalam Anandapuram Road Limited (Part 1 of 4) Prepared by India Infrastructure Finance Company Limited for the India Infrastructure Finance Company Limited and the Asian Development Bank. This environmental and social due diligence report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. Environment and Social Due Diligence Report Ashoka Ranastalam Anandapuram Road Limited Due Diligence Report on Environment and Social Safeguards By India Infrastructure Finance Company Limited (IIFCL) (A Govt. of India Enterprise) Sub-Project: Six-laning of NH-16 from Ranastalam to Anandapuram (Vishakhapatnam) (from km 634.000 to km 681.000) in the State of Andhra Pradesh under NHDP Phase-V on Hybrid Annuity Mode (Package II) June 2019 ESDDR NO. IIFCL/ESMU/ADB/2019/112/V3 1 Environment and Social Due Diligence Report Ashoka Ranastalam Anandapuram Road Limited SUB PROJECT: Six-laning of NH-16 from Ranastalam to Anandapuram (Vishakhapatnam) (from km 634.000 to km 681.000) in the State of Andhra Pradesh under NHDP Phase-V on Hybrid Annuity Mode (Package II) Ashoka Ranastalam Anandapuram Road Limited (ARARL) Environment and Social Safeguards Due Diligence Report (ESDDR) Prepared by Dr. Rashmi Kadian Assistant General Manager (Environmental Specialist) ESMU, IIFCL Mr. Krupasindhu Guru Assistant General Manager (Social Specialist) ESMU, IIFCL Reviewed and Approved by Dr. S. S. Garg Head, ESMU IIFCL ESDDR NO. IIFCL/ESMU/ADB/2019/112/V3 2 Environment and Social Due Diligence Report Ashoka Ranastalam Anandapuram Road Limited CONTENTS PROJECT BACKGROUND ....................................................................................................... 5 1. PURPOSE OF THE REPORT ........................................................................................... 6 2. SUB-PROJECT TITLE ..................................................................................................... 6 3. SUB-PROJECT BACKGROUND ...................................................................................... 6 4. SUB-PROJECT LOCATION & DESCRIPTION ................................................................ 6 5. CONCESSIONAIRE ......................................................................................................... 9 6. EPC CONTRACTORS ...................................................................................................... 9 7. INDEPENDENT ENGINEER ............................................................................................ 9 8. IIFCL FUNDING .............................................................................................................. 9 9. STATUS OF PROJECT IMPLEMENTATION .................................................................. 9 DUE DILIGENCE ON ENVIRONMENTAL SAFEGUARDS .................................................... 10 10. ENVIRONMENT SAFEGUARDS COMPLIANCE REVIEW .......................................... 11 11. APPLICABILITY OF ENVIRONMENTAL IMPACT ASSESSMENT NOTIFICATION .. 11 12. APPROACH TO THE ENVIRONMENT SAFEGUARDS DUE DILIGENCE REPORT: .. 11 13. COMPLIANCE OF THE SUB PROJECT TO THE ESSF OF IIFCL: .............................. 12 14. POLICY, LEGAL AND REGULATORY REQUIREMENT: ............................................ 12 15. IMPACT ASSESSMENT OF SUB-PROJECT .................................................................. 15 16. IMPLEMENTATION OF ENVIRONMENTAL MANAGEMENT PLANS ....................... 16 17. HEALTH AND SAFETY ................................................................................................. 20 18. GRIEVANCE REDRESSAL MECHANISM .................................................................... 20 19. ENVIRONMENTAL SENSITIVITY ................................................................................ 21 20. PROJECT AGAINST THE PROHIBITED INVESTMENT ACTIVITIES LIST ............... 21 21. CATEGORIZATION OF SUB-PROJECT ....................................................................... 21 22. SITE VISIT OBSERVATIONS ........................................................................................ 22 23. CONCLUSIONS AND RECOMMENDATIONS .............................................................. 25 DUE DILIGENCE ON SOCIAL SAFEGUARDS ....................................................................... 27 24. PURPOSE OF THE SOCIAL SAFEGUARDS DUE DILIGENCE .................................... 28 25. PROJECT AGAINST THE PROHIBITED INVESTMENT ACTIVITIES LIST ............... 28 26. OBJECTIVE OF SOCIAL SAFEGUARDS DUE DILIGENCE ......................................... 28 27. APPROACH AND METHODOLOGY ............................................................................. 28 28. SOCIAL IMPACT OF THE PROJECT ........................................................................... 29 27.1 LAND ACQUISITION IN THE PROJECT ...................................................................... 29 27.2 IMPACT ON STRUCTURE ............................................................................................ 30 27.3 REHABILITATION AND RESETTLEMENT IMPACT IN THE SUB-PROJECT ............ 30 27.4 IMPACT ON INDIGENOUS PEOPLE ............................................................................ 30 29. GREIVANCE REDRESSAL MECHANISM FOR THE SUB-PROJECT .......................... 30 30. EMPLOYMENT GENERATION .................................................................................... 31 31. THE COMMUNITY ENGAGEMENT ACTIVITIES ....................................................... 31 32. LABOUR LICENSE OBTAINED BY THE SUBPROJECT DEVELOPER ....................... 32 33. DISCLOSURE ................................................................................................................ 32 34. SITE VISIT OBSERVATION .......................................................................................... 32 LIST OF FIGURES Figure 1: Project Location on Map………..……..……………………………………………………7 ESDDR NO. IIFCL/ESMU/ADB/2019/112/V3 3 Environment and Social Due Diligence Report Ashoka Ranastalam Anandapuram Road Limited LIST OF TABLES Table 1: Salient Features of Ashoka Ranastalam Anandapuram Road Limited…………………….8 Table 2: Status of Regulatory Permits/ Clearances Obtained related to Environmental Safeguards…12 Table 3: Status of EMP Implementation at ARARL…………………………………………………….16 ANNEXURES Annexure I Environment Management Plan of ARARL Annexure II Tree Cutting Permission Srikakulum Annexure III Tree Cutting Permission Vizianagaram Annexure IV Tree Cutting Valuation Vishakhapatnam Annexure V Consent to Establish Annexure VI Consent to Operate Annexure VII Borrow Area Permissions from Mining Deptt. Annexure VIII Borrow Area Permissions from Irrigation Deptt. Annexure IX Labour License Annexure X Labour Insurance Annexure XI Borewell Permissions Annexure XII Environmental, Safety and Social Management System Manual Annexure XIII Avenue & Median Plantation Scheme Annexure XIV Emergency Response Plan Annexure XV Environmental Monitoring Reports Annexure XVI Traffic Safety Management Plan Annexure XVII Organizational Chart of ARARL for EHS Annexure XVIII Grievance Redressal Mechanism Guidelines Annexure XIX RoW Handover Letter Annexure XX Local employment details Annexure XXI Community Development Activities PHOTOPLATE Photoplate I : Site Visit Photographs ESDDR NO. IIFCL/ESMU/ADB/2019/112/V3 4 Environment and Social Due Diligence Report Ashoka Ranastalam Anandapuram Road Limited PROJECT BACKGROUND ESDDR NO. IIFCL/ESMU/ADB/2019/112/V3 5 Environment and Social Due Diligence Report Ashoka Ranastalam Anandapuram Road Limited 1. PURPOSE OF THE REPORT 1. This Environmental and Social Due Diligence Report (ESDDR) has been carried out by India Infrastructure Finance Company Limited (IIFCL) in consultation with the Concessionaire, Ashoka Ranastalam Anandapuram Road Limited (ARARL) to assess the adequacy of the project with the applicable national, IIFCL’s ESSF and ADB’s safeguard compliance. The report has been prepared as per the documents/information received from the Concessionaire and on the basis of site visit observations. 2. SUB-PROJECT TITLE 2. The sub-project includes - Six-laning of NH-16 from Ranastalam to Anandpuram (Visakhapatnam) (from km 634.000 to km 681.000) in the state of Andhra Pradesh under NHDP Phase-V on Hybrid Annuity Mode (Package II). 3. SUB-PROJECT BACKGROUND 3. National Highways Authority of India (NHAI), during January 2017, invited proposals from various bidders for construction, operation and maintenance of the 6 laning of NH16 from Ranastalam to Anandapuram (Visakhapatnam) from km 634.000 to km 681.000 (approx. 47 Kms) in the State of Andhra Pradesh under NHDP Phase V (Package II) on Design, Build, Operate and Transfer (Hybrid Annuity) basis. NHAI awarded the Project to Ashoka Concessions Limited (ACL) and established Ashoka Ranastalam Anandapuram Road Limited (ARARL) for development of the Project. ARARL is a special purpose vehicle (SPV) formed as a 100% subsidiary of Ashoka Concessions Ltd (ACL),
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