Initial Environmental Examination Project No.: 43448-014 April 2019 Nepal: Bagmati River Basin Improvement Project Additional Financing (1 of 2) Prepared by the Ministry of Urban Development, Government of Nepal for the Asian Development Bank. The Initial Environmental Examination 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 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. CURRENCY EQUIVALENTS (as of 3 April 2019) Currency unit Nepalese rupee/s (NRe/NRs) NRe 1.00 = $0.009045 $1.00 = NRe110.5525 Abbreviations ADB Asian Development Bank AEP Annual Exceedance Probability BRF Bagmati River Festival BRBIP Bagmati River Basin Improvement Project BOD Biochemical Oxygen Demand COD Chemical Oxygen Demand DHM Department of Hydrology and Meteorology DO Dissolved Oxygen DOI Department of Irrigation DFO District Forest Officer Department of Soil Conservation and Watershed DSCWM Management EA Executing Agency EARF Environmental Assessment and Review Framework EHS Environmental Health & Safety EIA Environmental Impact Assessment EMP Environmental Management Plan EPA Environment Protection Act EPR Environment Protection Rules GDP Gross Domestic Product GIS Geographical Information System GRM Grievance Redress Mechanism HFL Highest flood level High Powered Commission for Integrated HPCIDBC Development for Bagmati Civilization IEE Initial Environmental Examination IFC International Finance Corporation IWRM Integrated Water Resources Management KUKL Kathmandu Upatyaka Khampani Limited KUSMS Kathmandu University School of Medical Sciences KVDA Kathmandu Valley Development Authority MoEF Ministry of Environment & Forests MPPW Ministry of Planning and Public Works MOFSC Ministry of Forest and Soil Conservation NAMS National Academy of Medical Sciences Initial Environmental Examination Report, April 2019 ii NEA Nepal Electricity Authority NGO Non-Governmental Organisation NSET National Society for Earthquake Technology NRCT Nepal River Conservation Trust NAAQS National Ambient Air Quality Standards OCHA United Nations Office for Coordination of Humanitarian affairs PMU Project Management Unit PIU Project Implementation Unit PMCSC Project Management Construction and Supervision Consultant PPE Personal Protective Equipment RSPM Respiratory Suspended Particulate Matter RBO River Basin Organisation REA Rapid Environmental Assessment SPS Safeguard Policy Statement, 2009 TA Technical Assistance NSET National Society for Earthquake Technology NRCT Nepal River Conservation Trust WECS Water and Energy Commission Secretariat WHO World Health Organisation WWTP Waste Water Treatment Plant Notes (i) The fiscal year (FY) of the Government of Nepal ends on 15 July. (ii) In this report, "$" refers to US dollars Initial Environmental Examination Report, April 2019 iii EXECUTIVE SUMMARY 1.1. Introduction and Project Background 1. Bagmati River runs through the Kathmandu Valley in Nepal. It is considered as Holy River by both Hindus and Buddhist. Various Ghats, cremation Ghats, temple of great cultural and religious value are located along the bank of Bagmati River. Other than the religious importance the river is lifeline of the city of Kathmandu as it meets the water supply need of the city and irrigation water requirement of the entire Kathmandu valley. Quality of the Bagmati river water is deteriorated badly over the years due to disposal of sewage and solid waste. Further planning of water supply system, river/bank protection system, bridges development, irrigation water supply system is developed independently on the river without proper coordination and synchronization which has led to minimal flow of the water in river especially during dry season. 2. ADB approved the Bagmati River Basin Improvement Project on 31 October 2013 (current project)1 to support the government and the civil society initiatives to improve water management and the river environment in the upper BRB. 3. The Government of Nepal with the support of Asian Bank Development (ADB) has initiated the Bagmati River Basin Improvement Project (BRBIP) in 2013 to protect the Bagmati River. The project is launched with ambit of enhancing the water resources and water quality of the river, accelerating the economic growth of the country and living standard of the people. The additional financing is required to scale-up the current project including consolidation of water management institutions, expansion of riverbank beautification works, riverine community mobilization and the design, build and operation of a wastewater treatment plant (WWTP). The additional financing is also required to meet the cost overruns to the current project with which performance is on track. As per ADB Safeguard Policy Statement, 2009 (SPS), the additional financing is categorized as category B in environment as none of the anticipated impacts due to the project are of irreversible, diverse or unprecedented in nature. 4. Components of additional financing includes (i) landscaping activities and beautification works of Bagmati River in different stretches (Uttar Gaya, Gokarna, Guheshwari, Thapathali to Balkhu), (ii) Construction of wastewater treatment plant (WWTP) at Tukucha and (iii) Restoration and reconstruction of the archaeological (Cultural heritage) monuments along Thapathali to Balkhu. 1.2 Policy, Legal and Administrative Framework 5. The Government of Nepal has a well-established environmental legal framework. Various laws and policies are available for protection of the environment, ecology and socio-economy. Most important environmental acts/rules are Environment Protection Act (EPA) of 1997 and the Environment Protection Rules (EPR) also of 1997 and with Amendments in 2007. Applicable environmental legislations of Government of Nepal to the project are listed below in Table 1. 1 The current project is financed by an Asian Development Fund loan of $25.5 million equivalent (Loan 3057-NEP, £ ¡ £¤¥¥¦¡ §¨ ¨¡§ © ¡ ¥ ¡ ¦ § £§¦§¨ ¤¥¡ £¤¥ §¥ ¡© § § § § ¥ ¦§ ¡¢ n Development Fund grant of $4.5 million (Grant 0367-NEP), along with $0.5 million (approximately co-financing from the Multi-donor trust fund under the Water Financing Partnership Facility), and was declared effective in February 2014. Initial Environmental Examination Report, April 2019 6 Table 1: Aplicable Environmental Legislations of the Government of Nepal S. No. Environmental Applicability Agency Safeguard Acts/Laws/Rules 1 Environmental Protection Applicable due to project activities Ministry of Environment & Act, 1997, GON in Pashupati Heritage area Forests Environment protection (Landscaping activity around Rules, 1997 Guheshwari temple area located in Pashupati Nath Temple heritage area) 2 Soil and Watershed Applicable Ministry of Environment & Conservation Act, 1982 The project site lies within the Forests Bagmati River Basin area. 3 Ancient Monument Applicable Department of Protection Act, 2013 Large no. of archaeological Archaeology (1956 A.D.) monuments within 100 m of RoW of river. Pashupati Nath temple is Basic guidelines for the UNESCO World Heritage Site. conservation and Permission should be taken from reconstruction of archaeological department prior to earthquake damaged carrying out project activities in heritage 2072 (2015) vicinity of these monuments and heritage site (Landscaping activity around Guheshwari temple area located in Pashupati Nath Temple heritage area) 4 Aquatic Animals Applicable. No permission as Local Authority (Chief Protection Act, 1961 such is required. District Officer of District) The project has direct interface with the Bagmati River which supports aquatic life as well. At present aquatic life is zero in project area. Measures are incorporated to support the aquatic life once project is implemented to support the aquatic life in line with the intent of this notification. 5 Labour Rules (1993) Applicable Labour Department Contractor has to comply with the requirement primarily. 6 Solid Waste Applicable. No permission as Ministry of Environment, & (Management and such is required. However, waste Forests Resource Mobilization) is to be managed as per the Act 2044, (1986) & Solid provisions of this Act and Rules. Waste Management Rules 2070, (2013) Policies and Guidelines 7 National Environmental Applicable. No permission as Ministry of Environment & Impact Assessment such is required. However, Forests Guidelines, 1993, GON contractor or project authorities to comply with the provisions of Initial Environmental Examination Report, April 2019 7 S. No. Environmental Applicability Agency Safeguard these guidelines line sourcing of borrow areas. 8 Occupational Safety and Applicable for DoLIDAR OSH Committee, Ministry health guidelines (Department of Local of Federal Affairs and Infrastructure Development and Local Development Agriculture Roads) Project but should be referred in this project also to maintain health and safety of workers/staff/public 9 Nepal Environmental Applicable Ministry of Environment, & Policy and Action Plan The project has an interface if Forests (NEPAP I and II), carrying out development in close 1993/1998 association with the natural resources 10 Wetland Policy, 2003, Applicable Ministry of Forest and Soil GON As