Semi Annual Environmental Monitoring Report Project Number: 42486-016 Period: February 2018 – January 2019 Submission Date: March 2019 IND: Madhya Pradesh Urban Services Improvement Project Prepared by Project Management Unit, Madhya Pradesh Urban Development Company, Government of Madhya Pradesh for the Asian Development Bank. This environmental monitoring 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. Your attention is directed to the “terms of use” section of this website. 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. CURRENCY EQUIVALENTS (as of March 2019) Currency unit – Equivalent INR 1.00 = $ 0.0144 $1.00 = INR. 69.00 ABBREVIATIONS ADB – Asian Development Bank APM – Assistant Project Manager ASI – Archaeological Survey of India ASO – Assistant Safeguards Officer BOD – Bio-Chemical Oxygen Demand CPCB – Central Pollution Control Board DBOC – Design Build Operate Contractor DPM – Deputy Project Manager EA – Executing Agency EARF – Environmental Assessment and Review Framework EHS – Environmental Health and Safety EMP – Environmental Management Plan GIS – Geographic Information System GoMP – Government of Madhya Pradesh GRC – Grievance Redress Committee GRM – Grievance Redress Mechanism IA – Implementing Agency IEE – Initial Environmental Examination IFC – International Finance Corporation IPP – Indigenous Peoples Development Plan MPPCB – Madhya Pradesh Pollution Control Board MPUDC – Madhya Pradesh Urban Development Company Limited MPUSIP – Madhya Pradesh Urban Services Improvement Project NAAQS – National Ambient Air Quality Standard NGO – Non-Governmental Organization O&M – Operation & Maintenance OHT – Overhead Tank PIU – Project Implementation Unit PMC – Project Management Consultant PMU – Project Management Unit PO – Project Officer PPE – Personal Protection Equipment PUC – Pollution Under Control RP – Resettlement Plan SEMP – Site Environmental Management Plan SEMR – Semi-annual Environmental Monitoring Report SOP – Standard Operating Procedure SPS – Safeguard Policy Statement STP – Sewage Treatment Plant TBT – Tool Box Talks ii UDHD – Urban Development and Housing Department ULB – Urban Local Body ULF – Unaccounted for Water WRD – Water Resources Department WTP – Water Treatment Plant WEIGHTS AND MEASURES oC degree centigrade dB Decibels dia diameter kg kilo gram Kl kilolitre km kilometre kmph kilometre per hour ha hectares HP Horse Power LPCD liters per capita per day lps liters per second m meter m3 Cubic meter mg milli gram mm milli meter mcm million cubic meters sq.km Square Kilometer NOTE{S} In this report, "$" refers to United States dollars. TABLE OF CONTENTS I. INTRODUCTION ................................................................................................................... 4 A. Madhya Pradesh Urban Services Improvement Project 4 B. Project Outputs and Outcome 4 C. Environmental Category 5 D. About this Report 5 II. PROJECT IMPLEMENTATION ARRANGEMENTS .............................................................. 7 III. PROJECT IMPLEMENTATION STATUS ............................................................................ 12 IV. COMPLIANCE STATUS WITH STATUTORY ENVIRONMENTAL REQUIREMENTS ........ 22 A. Status of Clearances 22 B. Compliance with Clearance Conditions 26 V. COMPLIANCE WITH LOAN COVENANTS ......................................................................... 28 A. Loan Covenants 28 B. Status of Environmental Assessment, Reports and Approval 32 C. Status of Disclosure of Safeguard Documents 34 D. Safeguards in Bid Documents and Contracts 34 VI. STATUS OF EMP IMPLEMENTATION ............................................................................... 35 A. Appointment of EHS Supervisor 35 B. Preparation of Site Environmental Management Plans 35 C. EMP Implementation Supervision and Monitoring 35 D. Implementation of EMP Measures and Compliance Status 36 E. Findings on EMP Compliance 69 F. Training and Capacity Building Programs 71 VII. ENVIRONMENTAL MONITORING ..................................................................................... 72 A. Monitoring Methodology 72 B. Monitoring Results 73 VIII. PUBLIC CONSULTATION ................................................................................. 78 IX. GRIEVANCE REDRESS ..................................................................................................... 81 A. Grievance Redress Mechanism 81 B. Complaints Received during Reporting Period 82 C. GRC Meetings 84 X. SUMMARY OF KEY ISSUES & REMEDIAL MEASURES ................................................... 85 A. Findings and Key Issues 85 B. Remedial Measures 86 LIST OF APPENDICES Appendix 1: Package-wise List of Subproject Components Appendix 2: Copies of Regulatory Clearances / Approvals Appendix 3: Details of Site Visits conducted by PMC, PIU & PMU Safeguard Staff Appendix 4: Site Visit Photographs showing Good & Poor Practices Appendix 5: Site Verification/Monitoring Checklist Package-wise Appendix 6: Monitoring Reports (Air, Noise & Water Testing Lab reports) – package-wise Appendix 7: Details of Consultations Conducted Appendix 8: MPUDC Office Order to Set up GRM Appendix 9: Public Complaints received during Reporting Period Appendix 10: SAUW Semi-Environmental Monitoring Report Review – Information Log 4 I. INTRODUCTION A. Madhya Pradesh Urban Services Improvement Project 1. The Asian Development Bank (ADB) funded Madhya Pradesh Urban Services Improvement Project (MPUSIP, the Project) complements past and ongoing efforts of the Government of Madhya Pradesh (GoMP) to improve water supply and wastewater management for the residents of Madhya Pradesh. The Project adopts a sector approach and invests in the water supply system sewerage systems in select towns in Madhya Pradesh. 2. Sixty-nine towns with reliable water resource, sound engineering feasibility, available land, and commitment for operation and maintenance (O&M), among others, have been identified to be supported by MPUSIP. Subprojects are selected based on the agreed selection criteria. The sector investments will lead to increase in wastewater, which also needs to be addressed. The GoMP is committed to improve wastewater management in a phased manner. The project will also support sewage infrastructure in additional four towns Anjad, Badwaha, Sanawad and Saikheda. Figure 1 shows the project towns in Madhya Pradesh. 3. Urban Development and Housing Department (UDHD) of the Government of Madhya Pradesh is the Executing Agency (EA) of the Project. Madhya Pradesh Urban Development Company Limited (MPUDC) is the Implementing Agency. ADB approved the project loan for MPUSIP in May 2017, got effective in August 2017, and the project is expected to be completed by June 2022. Government of Madhya Pradesh is currently in discussion with the ADB for additional financing to implement the project (as MPUSIP Phase 2) in additional towns. B. Project Outputs and Outcome 4. The Project outputs are as follows: (i) Output 1: Improved water supply infrastructure in all project towns and integrated storm water and sewage infrastructure in selected towns. This will include (i) construction of water supply facilities, using DBO model, in all project towns (the facilities will include raw water intakes, water treatment plants, overhead tanks, and distribution networks including the metered household connections); (ii) construction of sewage and storm water management systems in selected towns; and (iii) the project implementation capacity strengthening. (ii) Output 2: Sustained urban infrastructure operation and management in all project towns. This will include engagement of operators on performance-based, long-term O&M contracts and the monitoring and auditing of the service. After the construction (expected to be completed in 2 years), the contractors of the civil works packages will continue to operate and provide continuous water supply service for project towns for a period of 10 years. MPUDC will pay the contractors the O&M cost on a monthly basis according to the contract agreement. The contractor will ensure proper metering and billing, ensure adequate water pressure is maintained, and ensure supplied water complies with national standards for drinking water. The operator will also ensure that the services are responsive and ensure high customer satisfaction. The ULB’s obligations include timely setting and adjusting the tariffs, collection of revenue, and managing the defaulters for ensuring cost recovery and fund management for ensuring timely payments to the contractors by MPUDC. After the O&M period of 10 years is completed, the water supply asset will be 5 handed over to the ULBs. The contractor will also train the ULB staff so that adequate capacities are built in the ULBs to operate the transferred assets. (iii) Output 3: Improved institutional effectiveness and strengthened capacity in all project towns and Madhya Pradesh Urban Development Company Limited. This will include (i) setting up of geographic information system (GIS)-based asset management and service delivery monitoring system; (ii) develop information technology systems in 15 ULB to assist them in the day-to-day management; (iii) improvement