Environmental and Social Framework (ESF)

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Environmental and Social Framework (ESF) Environmental and Social Framework (ESF) (Approved by Government of Tamil Nadu, G.O.Ms.No.115, Dated: 6.10.2006) Tamil Nadu Urban Infrastructure Financial Services (TNUIFSL) July 2006 Prepared by Tamil Nadu Urban Infrastructure Financial Services, Chennai In association with Wilbur Smith Associates Private Limited Chennai & Community Consulting India Pvt. Ltd., Chennai CONTENTS LIST OF APPENDIX ………………………………………………………………... iii LIST OF TABLES…………………………………………………………………… iv ACRONYMS…………………………………………………………………………. v EXECUTIVE SUMMARY ………………………………………………………….. vii PART I : TNUIFSL’S POLICY STATEMENT PART II SECTION 1 ENVIRONMENTAL AND SOCIAL ISSUES ………………………. 1 Typical Municipal Infrastructure Projects……………………………………. 1 Environmental and Social Issues……………………………………………... 4 Water Supply and Sewerage………………………………………………… 4 Solid Waste Management…………………………………………………… 5 Transportation………………………………………………………………… 6 Commercial Complexes……………………………………………………… 8 Non-Commercial / Community Amenities…………………………………… 9 Integrated Area Development………………………………………………… 9 Categorisation of Urban Infrastructure Projects…………………………… 9 Environmental Categories …………………………………………………… 9 Social Categorisation of Projects …………………………………………… 14 SECTION 2 NATIONAL & STATE POLICY AND REGULATORY FRAMEWORK. 15 Regulatory Framework – Urban Infrastructure Projects ………………… 15 Constitutional Provisions ……………………………………………………. 15 Tamil Nadu Town and Country Planning Act, 1971 ……………………… 15 Tamil Nadu Municipalities Law and Building By Laws …………………… 16 Development Control Rules for Chennai Metropolitan Area ……………… 17 Regulatory Framework – Environment ……………………………………… 17 Constitutional Guarantees …………………………………………………… 17 Laws and Acts ………………………………………………………………… 17 Rules and Regulations ……………………………………………………… 19 Operational Policies and Directives of The World Bank ………………… 20 Competent Regulatory Agencies …………………………………………… 21 Regulatory Framework - Social ……………………………………………… 27 Mandatory …………………………………………………………………….… 27 The World Bank OP 4.12 …………………………………………………… 29 TNUIFSL’s Entitlement Framework ………………………………………… 30 Key Principles of ESF………………………………………………………… 30 Impacts and Entitlements…………………………………………………… 31 Implications to TNUIFSL ……………………………………………………… 31 Municipalities as Borrowers and Regulators ……………………………… 31 Consumer Protection ………………………………………………………… 31 TNUIFSL - ESF / JULY 2006 i Environment …………………………………………………………………… 31 Social …………………………………………………………………………… 32 SECTION 3 TNUIFSL’s ENVIRONMENTAL AND SOCIAL ASSESSMENT 32 FRAMEWORK ……………………………………………………… TNUIFSL’s Project Preparation & Appraisal Process …………………… 32 Project Screening ……….…………………………………………………… 33 Project Appraisal ………..…………………………………………………… 35 Loan Sanction & Disbursement ……………………………………………… 36 Project Monitoring, Audit and Recovery …………………………………… 38 SECTION 4 ORGANISATIONAL SUPPORT STRUCTURE…………………… 44 Organisational Structure ……………………………………………………… 44 Responsibility Allocation Framework ……………………………………… 44 Advisors for Environmental and Social Issues …………………………… 45 Capacity Building …………………………………………………………….. 45 TNUIFSL - ESF / JULY 2006 ii LIST OF APPENDIX Appendix 1 List of Municipalities in Tamil Nadu – Region Wise & District Wise Appendix 2 Location of Municipalities Appendix 3a Terms of Reference to Carry out Environmental Assessment Studies for E-1 Projects Appendix 3b Terms of Reference for Carrying out Environmental Assessment of Road Projects. Appendix 4 Generic Environmental Guidelines / Management Plan for E-2 Projects Appendix 5 74 th Amendment of Constitution Appendix 6 Salient Features of the Tamil Nadu District Municipalities Act, 1920 Appendix 7 Social Safegaurd and Entitlement Framework Appendix 8 Terms of Reference for Environmental and Social Manager Appendix 9 Terms of Reference for Environmental and Social / R&R Capacity Building Consultants Appendix 10 Terms of Reference for Environmental and Social Advisors Appendix 11 Terms of Reference for Environmental and Social Audit of Projects Appendix 12 Contractual Text to be included in PMC Consultancies Appendix 13 Organisation Chart of TNUIFSL Appendix 14 EIA Notification, Ministry of Environment and Forest TNUIFSL - ESF / JULY 2006 iii LIST OF TABLES Table 1.1 Profile of Typical TNUIFSL Projects ………………………………… 2 Table 1.2 List of Sensitive Environmental Components ……………………… 10 Table 1.3 Guidelines for Environmental Categorisation of Projects ………… 11 Table 1.4 Potential Environment Enhancement Opportunities in TNUIFSL 13 Sub Projects ……………………………………………………………. Table 1.5 Categorisation of Projects based on Social Sensitivity …………… 14 Table 2.1 Environmental Laws and Regulations Applicable for TNUIFSL 23 Projects and their Obligation …………………………………………… Table 3.1 TNUIFSL’s Project Appraisal Process ……………………………… 40 Table 4.1 Generic Training Program …………………………………………… 47 TNUIFSL - ESF / JULY 2006 iv ACRONYMS AMC Asset Management Company BP Bank Procedures MD &CEO Managing Director & Chief Executive Officer CPR Common Property Resource CRZ Coastal Regulation Zone DPR Detailed Project Report EAR Environmental Assessment Report ECOP Environmental Code of Practices EIA Environmental Impact Assessment EMP Environmental Management Plan ESAR Environmental and Social Assessment Report ESR Environmental and Social Report ESF Environmental and Social Framework E& S Environmental and Social FI Financial Institution GF Grant Fund GOI Government Of India GoTN Government of Tamil Nadu GRC Grievance Redressal Committee HDFC Housing Development Finance Corporation HH Household ICICI Industrial Credit and Investment Corporation of India Limited IDA International Development Agency IL&FS Infrastructure Leasing and Financial Services Limited ISR Initial Screening Report MoEF Ministry of Environment and Forest MRTS Mass Rapid Transport System MUDF Municipal Urban Development Fund NGO Non Governmental Organization OD Operational Directives OP Operational Policies PAP Project Affected Person PAF Project Affected Family PIA Project implementation Agency PMC Project Management Consultant PMG Project Management Group PMU Project Management Unit RMP Risk Management Plan R&R Resettlement and Rehabilitation SAR Social Assessment Report SEC Sensitive Environmental Components TC Trustee Company TNPCB Tamil Nadu Pollution Control Board TNSCB Tamil Nadu Slum Clearance Board TNUDF Tamil Nadu Urban Development Fund TNUDP Tamil Nadu Urban Development Project TNUIFSL Tamil Nadu Urban Infrastructure Financial Services Limited TOR Terms of Reference TNUIFSL - ESF / JULY 2006 v TRAMP Traffic and Transport Program ULB Urban Local Body WB World Bank BP Bank Procedures RP Resettlement Plan TNUIFSL - ESF / JULY 2006 vi EXECUTIVE SUMMARY BACKGROUND 1. The Tamil Nadu Urban Infrastructure Financial Services Limited (TNUIFSL) has been set up to manage a Trust fund ---- Tamil Nadu Urban Development Fund (TNUDF). The trust has been established to manage urban infrastructure projects in Tamil Nadu. The deployment of funds will be on the basis of a management contract and will be managed by TNUIFSL. Eligible borrowers include Urban Local Bodies (ULBs), Statutory Boards, Public Undertakings and potential Private Investors. TNUIFSL has implemented projects by applying the Environmental and Social Report (ESR). Based on the experience it is found that the ESR requires updating and revision. There have been some additions to the laws on environment and on social policies, subsequent to the ESR was originally drafted. These have necessitated the review of the ESR to make it in line with the current practices. 2. The fund has been managed by a corporate Trustee Company (TC) with shareholdings from Government of Tamil Nadu (GoTN) and three leading Financial Institutions - ICICI (Industrial Credit and Investment Corporation of India), HDFC (Housing Development and Financial Corporation) and IL&FS (Infrastructure Leasing and Financial Services Limited). To fund project development activities, a new Grant Fund (GF) has been established. 3. TNUDF will channel increased financial resources, including private financing, into high priority infrastructure investments. Specifically the fund would: ❏ fund viable urban infrastructure projects; ❏ mobilise resources from capital markets; ❏ facilitate participation of private sector in infrastructure development through direct investment and joint delivery mechanism of infrastructure services; ❏ would earn returns for contributors and ensure sustainability of the fund; ❏ improve financial management of ULBs, enabling them to access debt finance from markets 4. The projects financed would: ❏ ensure that investments are commensurate with service demands; ❏ earn stipulated economic and financial returns; ❏ be institutionally viable so that the borrowers are capable of implementing the management arrangements to do so ; ❏ ensure that no adverse environmental and social impacts take place or that the borrower will be taking measures to avoid or minimise such impacts in consonance with the Environment and Social Framework (ESF - Originally named as Environmental and Social Report - ESR). TNUIFSL - ESF / JULY 2006 VII 5. Typical urban infrastructure projects eligible for funding would include water supply, sanitation, solid waste management, roads, transportation, sites and services, area development and other remunerative/non-remunerative urban infrastructure projects. Power and telecommunication projects are excluded because of the magnitude of such projects in relation to the size of the fund as well as the regulatory issues involved. 6. Recognising the environmental and social issues
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