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INITIAL POVERTY AND SOCIAL ANALYSIS Country: India Project Title: Kolkata Environment Improvement Investment Program

Lending/Financing Multitranche financing facility Department/ South Asia Department/ Modality: Division: Urban Development and Water Division

I. POVERTY ISSUES A. Links to the National Poverty Reduction Strategy and Country Partnership Strategy The Eleventh Five Year Plan (2007-12) of the Government of India targets universal coverage of urban population with safe drinking water by 2012 and 100% population coverage with safe sanitation (70% through sewerage and 30% through low cost sanitation) and solid waste management services. It also stresses on the reduction of poverty incidence and deprivation in India’s cities and towns through implementation of integrated development schemes combined with growth strategies. The government policies and programs governing urban poverty are: (i) National Urban Poverty Reduction Strategy (2010-20); (ii) Programs like Basic Services for Urban Poor under Jawaharlal Nehru Urban Renewal Mission, Integrated Housing and Urban Services Development Program under Urban Infrastructure Development Services in Small & Medium Towns and Rajiv Awas Yojana – Slum Free City Planning; and (iii) Programs aiming at employment generation or livelihoods, such as Swarna Jayanti Shahari Rozgar Yojana, the recently introduced urban employment guarantee scheme (which aims at a minimum of 100 days employment in a year for the poor thus enhancing employment opportunities for less advantaged groups), etc. The ADB Country Partnership Strategy, 2009-2012 for India is closely aligned with India’s 11th Five-Year Plan (2007-2012). The country partnership and strategy, and ADB’s assistance program for 2009–2012 have been designed to support the Government of India’s efforts to address the binding constraints in the 11th FYP through four strategic pillars. One of the strategic pillars puts emphasis on infrastructure development in various sectors, including urban. B. Targeting Classification General Intervention Individual or Household (TI-H) Geographic (TI-G) Non-Income MDGs (TI-M) The ongoing Kolkata Environmental Improvement Project (Loans 1813 and 2297-IND) increased the access to sewerage in the peripheral area, and resulted in the sewerage coverage rate from 31% in 2001 to 43% in 2012. The Kolkata Environmental Improvement Investment Program will aim to build on the effort of the ongoing Kolkata Environmental Improvement Project (project completed in June 2012). The investment plan will contribute to MDG Goal 7, Target 3, which is to half by 2015, the proportion of the population without sustainable access to safe drinking water and basic sanitation. C. Poverty Analysis 1. If the project is classified as TI-H, or if it is policy-based, what type of poverty impact analysis is needed? Not applicable, as the project is not TI-H or policy-based. 2. What resources are allocated in the PPTA/due diligence? Project team has finalized SPRSS. No further resource is necessary. 3. If GI, is there any opportunity for pro-poor design (e.g., social inclusion subcomponents, cross subsidy, pro-poor governance, and pro-poor growth)? Not applicable. The classification is Non-Income MDGs. II. SOCIAL DEVELOPMENT ISSUES A. Initial Social Analysis Based on existing information: 1. Who are the potential primary beneficiaries of the project? How do the poor and the socially excluded benefit from the project? The subprojects under the project will address both poor and non-poor in KMC through improved access to urban services in water supply and a combined system of sewer and drainage. 2. What are the potential needs of beneficiaries in relation to the proposed project? The needs of the slum households in notified slum areas and also poor households in non-slum areas, are better access to urban basic need services, and reduce the vulnerability to flooding and the resulting loss of livelihood and incomes. 3. What are the potential constraints in accessing the proposed benefits and services, and how will the project address them? No potential constraints are identified. B. Consultation and Participation 1. Indicate the potential initial stakeholders. KMC water department, KMC sewerage and drainage department, water consumers and sewer users. 2. What type of consultation and participation (C&P) is required during the PPTA or project processing? KMC will organize a workshop for disclosing the subproject appraisal reports upon finalization, and will discuss with stakeholders.

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3. What level of participation is envisaged for project design? Information sharing Consultation Collaborative decision making Empowerment 4. Will a C&P plan be prepared during the project design for project implementation? Yes No The design and technique adopted by KMC has helped address and mitigate potential social issues associated with works. Information disclosure is an integral part of safeguards planning during project implementation. Consultations and information disclosure will be carried out at different stages of the project cycle. Consultation measures envisaged for the project are: (i) KMC will inform through its officials and contractor about the construction schedule to minimize the temporary impacts; (ii) PMU will ensure that the affected people’s if any will be identified and informed about the assistance to be provided for any temporary loss of livelihood; and (iii) attempts will be made to ensure that vulnerable groups, if any, will understand the process and that their specific needs will be taken in to consideration. C. Gender and Development Proposed Gender Mainstreaming Category: EGM 1. What are the key gender issues in the sector/subsector that are likely to be relevant to this project/program? Kolkata has had an increase in gender ratio from 829 females/100 males in 2001 to 899 females/100 males in 2011. 22% of poor households are women headed households and overall 77% of women in poor households are uneducated (National Family Health Service 2005-2006). Because women are primarily responsible for household work, the lack of access to water causes them to spend more time fetching water, thus preventing them from engaging meaningfully in income-generating activities or participating in educational activities, particularly in the case of girl children and adolescent girls. Lack of access to water also causes households to be highly judicious in its use, thereby adversely affecting cleanliness and health. As per KMC records, KMC provides one stand post for every 39 slum dwelling unit. Women are further compromised by being vulnerable to waterborne diseases brought about by poor sanitation and at the same time having to continue to perform household chores and bear the burden of caring for their children, the sick and elderly. 2. Does the proposed project/program have the potential to promote gender equality and/or women’s empowerment by improving women’s access to and use of opportunities, services, resources, assets, and participation in decision making? Yes No Please explain. Measures included in the design to promote gender equality and women’s empowerment are access to and use of relevant services, resources, assets, or opportunities and participation in decision-making process. 3. Could the proposed project have an adverse impact on women and/or girls or to widen gender inequality? Yes No Please explain. Although the project does not specifically target any gender, whether women or men, all subproject components will help improve their quality of life and address gender issues, such as differential gender impacts of inadequate access to water supply and sanitation services. Women as caretakers of the home environment are affected by poor living conditions especially poor water supply and poor sanitation. Gender issues have also been integrated in the resettlement plan. Poor women-headed households have been considered to be vulnerable households and have been accorded additional entitlements as required.

III. SOCIAL SAFEGUARD ISSUES AND OTHER SOCIAL RISKS Nature of Significant/Limited/ Plan or Other Action Issue Social Issue No Impact/Not Known Required Involuntary Resettlement Temporary loss of Limited. Permanent land Resettlement Plan income during acquisition is not expected, Resettlement Framework construction. however, rehabilitation and Environmental and Social laying of pipe networks, Management System while to be conducted only Arrangement on road rights-of-way can None result in temporary loss of Uncertain income during construction. Indigenous Peoples None. No impact. Investment Indigenous Peoples Plan activities under all tranches Indigenous Peoples will have no impacts on Planning Framework scheduled tribes resident in Environmental and Social Kolkata as scheduled tribes Management System resident in Kolkata speak Arrangement the same language as the None majority of the population, Uncertain and do not follow any distinct cultural practices. Labor Limited. The ensuing Plan Employment project will not lead to Other Action Opportunities employment loss. Local No Action

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Labor Retrenchment labor opportunities made Uncertain Core Labor Standards available through construction contracts. Affordability The investment Limited. User charges for Action program will result in water supply and sewerage No Action introduction of tariff. will consider affordability to Uncertain the poor households. Willingness-to-pay survey was undertaken. Other Risks and/or The size of laborers Limited. The investment Plan Vulnerabilities and O&M staff brought program will be a series of Other Action HIV/AIDS by the contractors will medium-scale No Action Human Trafficking be large. infrastructure projects. Uncertain Others (conflict, political instability, etc.), please specify

IV. PPTA/DUE DILIGENCE RESOURCE REQUIREMENT 1 Do the TOR for the PPTA (or other due diligence) include poverty, social and gender analysis and the relevant specialist/s? Yes No The poverty, social and gender analysis was finalized already. KMC’s own consultants undertook the analysis, and ADB staff reviewed the output.

2. Are resources (consultants, survey budget, and workshop) allocated for conducting poverty, social and/or gender analysis, and C&P during the PPTA/due diligence? Yes No The poverty, social and gender analysis was finalized already. KMCs own consultants undertook the analysis, and ADB staff reviewed the output. ADB = Asian Development, EGM = effective gender mainstreaming, FYP = Five-Year Plan, IND = India, KMC = Kolkata Municipal Corporation, MDG = millennium development goal, O&M = operation and maintenance, PMU = project management unit, PPTA = project preparatory technical assistance, SPRSS = Summary Poverty Reduction and Social Strategy, TOR = terms of reference.