Kathmandu Valley Water Supply and Wastewater System Improvement Project

Resettlement Plan

May 2011

NEP: Kathmandu Valley Water Supply and Wastewater System Improvement Project

Prepared by Kathmandu Upatyaka Khanepani Limited, Ministry of Physical Planning and Works, Government of Nepal for the Asian Development Bank

ABBREVIATIONS

ADB — Asian Development Bank BDS — Bulk Distribution System CDC — Compensation Determination Committee CDO — Chief District Officer CIRT — Community Issues Resolution Team DAO — District Administration Office DDC — District Development Council DNI — Distribution Network Improvement DSC — Design and Supervising Consultant EMP — Environmental Management Plan FGD — Focused Group Discussions GRM — grievance redress mechanism KUKL — Kathmandu Upatyaka Khanepani Limited KVWSMB — Kathmandu Valley Water Supply Management Board lpcd — liters per capita per day MPPW — Ministry of Physical Planning and Works MWSP — Melamchi Water Supply Project MWSDB — Melamchi Water Supply Development Board NGO — nongovernmental organization PID — Project Implementation Directorate PPTA — Project Preparatory Technical Assistance ROW — right of way SPS — Safeguard Policy Statement VDC — Village Development Council WSI — wastewater system improvement

WEIGHTS AND MEASURES

dia – diameter ha. – hectare km – kilometer m – Meter m2 – square meter m3 – cubic meter mm – millileter MTD – metric tons per day sq. km. – square kilometer

This resettlement plan 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.

CONTENTS

Page

EXECUTIVE SUMMARY

I. PROJECT DESCRIPTION 1 A. Background 1 B. Project Components 1 II. SCOPE OF LAND ACQUISITION AND RESETTLEMENT 7 III. SOCIOECONOMIC INFORMATION AND PROFILE 13 A. Socioeconomic Profile of Kathmandu Valley 13 B. Socioeconomic Profile of the Kalopul DNI Pilot Area 15 C. Gender Considerations 17 IV. INFORMATION DISCLOSURE, CONSULTATION, AND PARTICIPATION 18 A. Public Consultation 18 B. Information Disclosure 19 C. Continued Consultation and Participation 19 V. GRIEVANCE REDRESS MECHANISM 19 VI. POLICY AND LEGAL FRAMEWORK 22 VII. ENTITLEMENTS, ASSISTANCE AND BENEFITS 22 A. Eligibility 22 B. Entitlements 22 C. Determination of Compensation 25 D. Vendor Assistance 26 E. Project Benefits 26 VIII. INCOME RESTORATION AND REHABILITATION 26 IX. RESETTLEMENT BUDGET AND FINANCING PLAN 26 X. INSTITUTIONAL ARRANGEMENTS 28 XI. IMPLEMENTATION SCHEDULE 29 XII. MONITORING AND REPORTING ERROR! BOOKMARK NOT DEFINED.

APPENDIXES

1. Sample Identify (ID) Card for Entitled Persons 32 2. Sample Monitoring Indicators 33 3. Project Implementation Arrangements 34 4. Traffic Management Planning 35 5. Sample income questionnaire for businesses survey 40 6. Environmental and Social Audit of existing wastewater treatment facilities 41 7. Summary procedures for Resettlement Planning 45

EXECUTIVE SUMMARY

1. Project Description. The proposed Kathmandu Valley Water Supply and Wastewater System Improvement Project (the Project)1 will support the ongoing efforts of the Government of Nepal (the government) towards improving the water supply and sanitation services in Kathmandu Valley. The Project will invest in bulk water transmission, distribution network improvement and sewerage systems and will complement the past and ongoing Asian Development Bank (ADB) projects.2 The resultant synergy is expected to lead to increased efficiencies, greater improvement in service delivery, and higher impact on health outcomes and quality of life for inhabitants of Kathmandu Valley. This is the resettlement plan prepared for the Project. It is based on feasibility level study. During detailed design, the exact alignments and impacts will be known. It will be implemented by the Project Implementation Directorate (PID) of Kathmandu Upatyaka Khanepani Limited (KUKL) to address any resettlement impacts, permanent or tempory, during project implementation.

2. Categorization. The overall project is classified as Category B in accordance with ADB's Safeguard Policy Statement (SPS). ADB’s SPS covers both temporary and permanent impacts.

3. Summary of Resettlement Impacts and Mitigations. There is no land acquisition under the proposed project. All land for service reservoirs was previously acquired under the ongoing ADB Loan 1820. The impacts are limited to the following: (i) temporary disruption of business activities and income, and (ii) temporary shifting of up to 100 vendors and hawkers during construction works within the right of way (ROW) for the bulk distribution system (BDS) and the distribution network improvement (DNI), and small sewer pipe connection works. Temporary disruption for DNI and sewer pipe connection works will be approximately 1–4 days and for BDS 5–7 days. Trench sections for DNI and sewer connection works will be 100–200m in length and 50–100 m for BDS. Contractors are required to maintain access to shops to avoid and/or limit the disturbance to the extent possible, and mitigation measures are incorporated into their contracts as outlined in the environmental management plan (EMP) and will be monitored by the construction supervision consultants. Under the BDS, some mobile hawkers and vendors, including those with stalls and temporary structures, will be assisted by contractors in moving to alternative locations during the brief period of construction and allowed to return once construction activities are declared complete, usually within 7 days. In the event roads are fully closed, with access to shops disrupted, compensation for lost income will be made for the time of disruption.3

4. Entitlements. Businesses will be compensated for lost income on fully closed streets where customer access to shops is disrupted. Compensation eligibility is limited by a cut-off date as set for this project on the day of the income survey prior to commencement of civil works. Once a contractor confirms a road is likely to be fully closed (no access for customer traffic), the design and supervision consultant (DSC) Social Safeguards Specialist will conduct an income survey of businesses along the relevant sections of road. An income survey will serve as the cut-off date. All businesses identified in the project-impacted areas (sections

ii identified for construction) on the cut-off date will be entitled to compensation for their lost income based on the tax record or, in its absence, comparable rates from registered businesses of the same type with tax records, or for shops not qualifying under these categories (hawkers, vendors, etc.), the option of using the actual income based on survey followed by a verification of the income data based on comparable incomes in the project area. Mobile hawkers and vendors will be assisted moving to alternative locations during the period of construction and entitled to return once works are declared complete by the contractor. A vendor action plan is also included in this Resettlement Plan.

5. Mechanism for Payment of Compensation. For shops experiencing income disturbance from loss of customer access on fully closed streets the DSC Social Safeguards Specialist will record the type of business and income loss and make a list of entitled persons. The DSC Social Safeguards Specialist will also identify vulnerable persons who are entitled to additional measures of assistance. Identity cards will then be distributed to these persons with the amount of compensation entitled. The list will be submitted to the PID safeguards unit officer in charge who will then issue a check directly to the persons upon confirmation of the entitled person as per then recorded list and identity card. All payments are recorded within the PID for accounting purposes.

6. Implementation Arrangements. The Ministry of Physical Planning and Works (MPPW) will be the executing agency responsible for overall strategic planning, guidance and management of the Project and for ensuring compliance with loan covenants. KUKL will be the implementing agency and the existing PID in KUKL will be responsible for (i) project planning, implementation, monitoring and supervision; (ii) reporting to KUKL Board of Directors, MPPW and ADB; and (iii) coordination of all activities in the Project. The experience of PID, KUKL in implementing subproject 2 of Melamchi Water Supply Project will be useful in taking advance actions for the Project. For safeguards, the PID has already established a Safeguards Unit staffed with environmental, social, and a legal specialist. The PID, KUKL will recruit two consulting firms, i.e. design, supervision and management consultant (DSC), and a Community Awareness and Participation firm. The DSC will have an environmental and social safeguard specialist to facilitate PID in implementation and supervision of works. Grievances will be addressed by the grievance redress mechanism which incorporates a clear and grassroots process for addressing public complaints.

I. PROJECT DESCRIPTION

A. Background

1. The proposed Kathmandu Valley Water Supply and Wastewater System Improvement Project (the Project)1 will support the ongoing efforts of the Government of Nepal (the government) towards improving the water supply and sanitation services in Kathmandu Valley. The Project will invest in bulk water transmission, distribution network improvement and sewerage systems and will complement the past and ongoing Asian Development Bank (ADB) projects.2 The resultant synergy is expected to lead to increased efficiencies, greater improvement in service delivery, and higher impact on health outcomes and quality of life for inhabitants of Kathmandu Valley.

2. Kathmandu Valley is characterized by high urban population growth (estimated to be 6.6% per annum) and high population density (estimated to be more than 2,500 persons per square kilometer [sq km]).3 The total population of Kathmandu Valley is estimated to be 2.72 million in 2011 and 3.5 million in 2016. Rapid and largely unplanned urban growth, high population density, lack of sustainable water sources, and inadequate past investments in water supply infrastructure have resulted in abysmally poor availability and quality of drinking water.4 Moreover, poor access to sanitation facilities, improper solid waste management system, and groundwater and surface water pollution from untreated domestic sewage have caused increased disease incidence, health risks and associated economic burdens disproportionately impacting the poor and vulnerable.5

B. Project Components

3. The proposed project includes sections of the bulk distribution system (BDS), distribution network improvement (DNI) and wastewater system improvement (WSI) works as originally planned under the Melamchi Water Supply Project (MWSP). Three existing wastewater treatment plants (Sallaghari, Kodku and Dhobighat) will be rehabilitated. The works will consist of upgrading treatment processes to cater to increased populations, repair works of pump houses, and installation of new pipes from pump houses to wastewater treatment plants, sewer unclogging, and backlog sewer connections to an estimated 5,000 households.

4. The works will include rehabilitation of wastewater treatment plant (WWTP) stabilization ponds at Kodku (Patan), Sallaghari (Bhaktapur) and Dhobighat (Kathmandu). The Design and Supervision Consultant (DSC) will carry out the process design of these plants. The

1 The Project was prepared through PPTA 4893-NEP: Preparing the Kathmandu Valley Water Distribution, Sewerage, and Urban Development Project, approved on 13 December 2006. Due to restructuring of ongoing loans, the work of PPTA started in 2009 and final report was submitted in May 2010. 2 Loan 1820-NEP (SF): Melamchi Water Supply Project was approved on 21 December 2000 and became effective on 28 November 2001. Loans 2058/2059-NEP (SF): Kathmandu Valley Water Services Sector Development Program were approved on 18 December 2003 and became effective on 7 December 2004. 3 Estimated projections by the Central Bureau of Statistics, Government of Nepal, 2003. 4 A baseline survey done by CRISIL under PPTA 4893-NEP in September 2010 estimates water availability as 20 liters per capita per day (lpcd) and average duration of water supply as 0.4 hours per day. Kathmandu Upatyaka Khaneani Limited (KUKL), the operator assesses the current availability as 45 lpcd. 5 Vulnerable Groups include female-headed households and below poverty line households (the poverty line in current terms is NRs 12,457 per capita/year). The national average household size in Nepal is considered 5.27 (Poverty Trends in Nepal. National Planning Commission Secretariat, 2005). Therefore, it is assumed the povert line is NRs 65,648 per household/year.

2 components are listed in Tables 1 and 2. Description of pipe size and lengths are described below. Figure 1 shows the water supply project area.

(i) Bulk Distribution System (BDS) (one package for pipes, one package for reservoirs). The BDS includes the installation of about 35km water mains ranging in diameter from 600mm to 1500mm diameter along the Kathmandu Ring Road (2 lanes in each direction, with 9 meter carriageway) and along major city road corridors. These water mains will feed 5 existing service reservoirs and 5 new service reservoirs; the latter to be constructed under the project at Arubari, Mahankal Chaur II, Bansbari, Balaju and Khumaltar. The service reservoirs provide water to the distribution network. Most of these pipes will be within wider roads with heavy traffic. Traffic management planning and implementation will be critical to ensure continued public support and limited impacts to businesses. Temporary disturbance to businesses is anticipated for 5–7 days per 100–200m section from the BDS component. Full road closure is not anticipated as the Ring Road is a primary traffic artery within Kathmandu. Good construction practices and traffic management measures including night works will ensure continued access to businesses and limited disruption to business activity. In a few areas, vendors and hawkers will require temporary relocation, and will be provided assistance by the contractor in relocating and shifting.

(ii) Distribution Network Improvement (DNI) (3 packages). Under the project, improvement of the water supply distribution network is planned for 11 sub-zone service areas. The DNI work will improve the water supply service by ensuring an adequate supply of potable water in compliance with the KUKL operator license. The DNI covers an area of about 1,820 hectares and will directly benefit approximately 470,000 people. The project includes the installation of over 400km of water distribution pipes ranging in diameter from 50mm to 500mm. Most of these pipes will be within dense, narrow streets (1–2 lane roads, with 5–7 meter carriageways). Minor temporary disruption to businesses is anticipated from the DNI component, however, most streets will remain open with access to business maintained causing limited interruption to livelihood activities. A limited number of roads (estimated at 20% of total DNI roads) are expected to be fully closed roads for short periods (1–4 days). Night works will also be conducted in narrow roads.

(iii) Wastewater System Improvement (WSI) (one package). This component includes the rehabilitation of the existing wastewater system. Three existing wastewater treatment plants (Sallaghari, Kodku and Dhobighat) will be rehabilitated/upgraded/reconstructed. The works will consist of upgrading treatment processes to cater to increased populations, repair works of pump houses, and installation of new pipes from pump houses to wastewater treatment plants. The small sewer pipe connection backlog works may cause temporary disturbance during construction. Any collector pipes needing repair will be investigated during detailed design. Collectors are located primarily along the river. If any structures are above the pipes, the project will apply non-invasive techniques such as trenchless technology and in situ pipe rehab techniques. Therefore avoiding any resettlement impacts from temporary disruption to business activities are anticipated. An assessment of existing facilities included field visits to each site in order to determine the existing environmental and social conditions. The sites are all government owned land, free of informal settlers but

3 it is determined that treatment plants are not fully functional and require upgrading to ensure adequate capacity and treatment processes for the increased wastewater flows of Kathmandu. Over the years, population growth in Kathmandu has resulted in increased residential and commercial land uses in the surrounding area. The project therefore finds the existing oxidation pond treatment technology inappropriate in an urban setting and proposes a mechanized treatment system to ensure more environmentally sensitive facilities which can coexist with surrounding land uses.

Figure 1: Proposed Water Supply System Improvements

Table 1: Proposed Water Supply Project Investments Infrastructure Function Description Location Resettlement Impact 1. Temporary Construction of 5 1. Construction of Mahankal Chaur II 30,000m3 None storage of treated reservoirs (2 nos. 8,000 capacity service reservoir near Arubari on previously a. Service reservoirs water prior to m3, 1 no.10,000 m3, 1 acquired land 2. distribution no.12,000 m3, 1 no. 2.Construction of 8,000m3 capacity service reservoir 30,000 m3) on previously acquired land in Arubari 3. Construction of 10,000 m3 capacity service reservoir on previously acquired land in Bansbari 4. Construction of a 4,000 m3 reservoir on new acquired land in Balaju and an additional 8,000 m3 reservoir will be constructed after dismantling the existing reservoir 5.Construction of 8,000m3 capacity service reservoir on previously acquired land to serve sub-zone A-8.5 at Khumaltar 3. Transfer water 4.78 km of 800 to 1500 Supply and complete laying including surface For linear works, from the ring main mm dia. DI pipe improvement works in trenches in the Right of temporary disruption to b. Feeder mains to the service Way (RoW) alongside main roads: business activity leading reservoirs at 1. Narayan Gopal Chowk Ring Main to Bansbari to potential income loss Bansbari, Balaju 2. Ring Main to Balaju reservoir (This goes is possible. Contractors and Khumaltar through forest land) will maintain access to 3. Ring Main to Khumaltar reservoir extent possible to limit 4. Transfer water 14.21 km of 600 to 1200 Supply and complete laying including surface short term impacts. along the Ring mm dia. DI pipe improvement works in trenches in the Right of Businesses will be c. Ring main Road to Way (RoW) alongside main roads: compensated for lost Kathmandu 1. Chabahil to Narayan Gopal Chowk income on fully closed Metropolis 2. Narayan Gopal Chowk to Balaju streets where customer 3. Chabahil to Gaushala access to shops is 4. Tinkune to Ekantakuna disrupted. . An income 5. Transfer water 14.11 km of 800 to 1000 Supply and complete laying including surface survey will serve as the from the ring mm dia. DI pipe improvement works in trenches in the Right of cut-off date. All d. Transversal main mains to the Way (RoW) alongside main roads: businesses identified in supply zones or 1. Gaushala to Baneshwar the project-impacted the main 2. Thapathali to Tinkune areas on the cut-off date distribution 3. Thapathali to Ekantakuna will be entitled to service area 4. Balaju to Lainchaur compensation for their 5. Lainchaur to Thapathali lost income based on 6. Distribute treated 1.All pipes 150mm Supply and complete laying including surface the tax record or, in its water to diameter or above will improvement works in trenches in the alongside absence, comparable e. Distribution pipes customers, be DI; distribution pipes public roads in: rates from registered replacing existing for Kathmandu Metro 1. Sub-zone A-3.1 (169.78ha., 17,485 pop. 2015) businesses of the same pipes and Zone will range from 75 2. Sub-zone A-3.2 (114.76ha.,18,167 pop. 2015) type with tax records, or expanding the to 140mm diameter and for shops not qualifying

Infrastructure Function Description Location Resettlement Impact network into new will be of UPVC or PE 3. Sub-zone A-3.3 (152.07ha.,48,726 pop. 2015) under these categories areas of about 2,257 km 4. Sub-zone A-4.1 (143.52ha.,50,301 pop. 2015) (hawkers, vendors, 2. Pipes 150-600mm 5. Sub-zone A-4.3 (94.58ha., 19,319 pop. 2015) etc.), the option of using diameter acting as trunk 6. Sub-zone A-6.2 (263.84ha.,100,995 pop. 2015) the actual income based mains and distribution 7. Sub-zone A-7 (209.84ha., 58,227 pop. 2015) on survey followed by a mains will be of DI of 8. Sub-zone A-8.2 (284.26ha.,72,178 pop. 2015) verification of the about 291km 9. Sub-zone A-8.3 (255.00ha.,60,287 pop. 2015) income data based on comparable incomes in the project area. dia = diameter, ha. = hectares, m3= cubic meter, mm = millimeter, km = kilometer

Table 2: Proposed Wastewater System Investments Infrastructure Function Description Locations Wastewater treatment plants improvements/upgrading a. Wastewater treatment Treatment of domestic Rehabilitating existing wastewater Sallaghari WWTP plants wastewater. treatment plants (Sallaghari, Kodku and Dhobighat) most probably activated to Kodku WWTP sludge process (ASP). The works will consist of upgrading treatment processes Dhobighat WWTP to cater to increased populations, repair works of pump houses, and installation of All government lands new pipes from pump houses to wastewater treatment plants. Treatment capacities to be determined at detailed design stage but initial estimates are as follows: Kodku of 8.5 MLD, Sallaghari of 8.5 MLD, Dhobighat of 20 MLD. Backlong of sewer Connect households without Households without sewer connections Throughout the sewer connections sewer connections will be provided connections. These to be coverage areas. identified during detailed design stage. In the ROW, may cause temporary impacts.

Sewer unclogging Clean out solid waste from Clean out solid waste from existing pipes. Existing collectors in existing pipes. sewer coverage areas.

Government lands, or ROW

Infrastructure Function Description Locations Provision of dedicated Power supply for operating new Generators and power supply added at Sallaghari WWTP power supply WWTPs existing land of WWTPs Kodku WWTP

Dhobighat WWTP

All government lands

Rehabilitation of pumping Improve functioning of out of Mechanical works at Sundarighat station. Sundarighat station order pump station Existing location

MLD = million liter per day, ROW = right of way, WWTP = waste water treatment plant

II. SCOPE OF LAND ACQUISITION AND RESETTLEMENT

5. There is no land acquisition under the proposed project. All land for service reservoirs were previously acquired under the ongoing ADB Loan 1820. The impacts are limited to the following: (i) temporary disruption of business activities and income, and (ii) temporary shifting of up to 100 vendors and hawkers during construction works within the right of way (ROW) for the BDS, the Distribution Network Improvement (DNI), and small sewer pipe connection works.1 Temporary disruption for DNI and sewer connections will be approximately 1–4 days and for BDS 5–7 days (from open trench to backfill). Trench sections for DNI will be 100–200m in length and 50–100 m for BDS. Contractors are required to maintain access to shops to avoid and limit the disturbance to the extent possible, and mitigation measures are incorporated into their contracts and monitored by the construction supervision consultants. Temporary economic impacts to businesses along the BDS and DNI routes are expected to be short term and avoided and/or mitigated through good traffic management planning and implementation, night works, and maintaining access to shops during the construction period as outlined in the environmental management plan (EMP).2 Under the BDS, some mobile hawkers and vendors, including those with stalls and temporary structures, will be assisted by contractors in moving to alternative locations during the brief period of construction and allowed to return once the area is declared complete of construction, usually within 7 days. In the event roads are fully closed, with access to shops disrupted, compensation for lost income will be made for the time of disruption.3

6. The Ring Road, where the BDS will be laid, is a major transportation artery within Kathmandu with pockets of dense commercial activity. It consists of two lanes in each direction with a total 18–20 carriageway on each side and moveable barrier in some stretches. The total right of way of the Ring Road is approximately 20–30 meters wide. Closing the Ring Road during construction is not an option as expressed by local authorities, therefore good traffic management by the contractors in coordination with Police, Roads Department, local Village Development Councils (VDCs) and communities is critical to ensure smooth flow of vehicles, safe passage of pedestrians, and limited business impacts. The construction method for BDS is open trenching with heavy excavation machinery. The contractors will be required to maintain access to shops during trenching (metal planks, spaces, etc), which is expected for 5–7 days for larger sized pipes (800–1500mm). For DNI works and sewer connections, trench stretches range from 50–100m with 1–4 days required for backfilling. DNI works will use primarily the hand digging method. Roads within the DNI areas are narrower (1–2 lane roads, with 5–7 meter carriageways), however the pipes are smaller diameter resulting in less disturbance to residents and businesses. It is estimated that 20% of the DNI area will experience full road closure on

narrower streets. Streets requiring full closure will be from 1–4 days. Prior to construction, 7 contractors and DSC, with the assistance of the Community Participation consultants will be required to provide at least 1–2 weeks advanced notice along with awareness campaign involving local area committees (Tole Committees).

1 In some areas along the ring road, works are proposed outside the carriageway or shoulder, however still within the ROW. In these areas, impacts to vendors may occur. 2 To ensure disturbance is minimized to the extent possible, contractors will be required to expedite works in front of businesses, provide pedestrian planks across trenches, manage traffic flows, conduct works at night, etc. 3 The full closure of roads is expected to be minimal under the project and based on discussions with contractors under the pilot DNI, is estimated to be around 20% of total roads in the planned DNI areas. Full closure is not expected in BDS areas, but more limited to DNI zones, where night works will also be considered to limit impacts. If closed, full closure is not expected to exceed 3-5 days.

7. Vendors: BDS works outside the carriageway will require temporary shifting of vendors. The areas of particular heavy vendor activity are in Narayangopal, Gongoba, and Bagadara Bus Park areas. An estimated 50–100 vendors may require temporary shifting during a period of less than 7 days. During detailed design, the exact alignments and impacts will be known. Vendors in DNI zones will not be impacted as works will maintain access to streets. If necessary, a very minor shifting will be required, but no impacts to business are expected.

Table 3: Proposed BDS Works and Potential Impacts Street Size of Pipe Width of Construction Size Estimated Estimated Level of (millimeters) Carriageway Method and period of number of disturbance (meters) (night/day) Length access vendors to (low, disruption to be medium, businesses temporarily high)4 shifted BDS Feeder Mains (4.78 km of 800 to 1500 mm dia.) Narayan Gopal 1500mm 18-20m in Night works 1500mm 5-7 days No vendors High Chowk Ring Main some to Bansbari sections 10m Feeder main 800mm 10-12 m Night and day 800 mm 4-5 days No vendors Medium

from Ring Main works to Balaju reservoir 8. Feeder main 800mm 10m Night works 800mm 4-5 days No vendors Medium 7. from Ring Main to Khumaltar reservoir BDS Ring Mains (14.21 km of 600 to 1200 mm dia. DI pipe) Chabahil to 1200mm 10m Night and day 5-7 days 10 vendors High Narayan Gopal works 1200mm Chowk

Narayan Gopal 1400mm 10-20 m Day works 1400mm 5-7 days 55 vendors High

Chowk to Balaju (outside carriageway) Chabahil to 1000mm 18-20m Day (outside 1000mm 5-7 days No vendors High Gaushala carriageway) Tinkune to 600mm Day (outside 600mm 4-5 days No vendors Medium Ekantakuna carriageway) BDS Transversal main (14.11 km of 800 to 1000 mm dia.) Gaushala to 1000mm 10m Night works 1000mm 5-7 days No vendors High Baneshwar Thapathali to 800mm 20 m Day and night 800mm 4-5 days No vendors Medium Tinkune works (outside carriageway)

Thapathali to 600mm 16-18m Night works 600mm 4-5 days No vendors Medium Ekantakuna Balaju to 600mm 10m Night works 600mm 4-5 days No vendors Medium Lainchaur Lainchaur to 1000mm 15-20m Night works 1000mm 5-7 days No vendors High Thapathali BDS = Bulk Distribution System, m = meter, mm = millimeter

4 Low: disturbance 1-3 days. Medium: disturbance 4-5 days, High: disturbance more than 5 days. Note that only businesses located on fully closed roads for more than 5 days are entitled compensation for lost daily income.

Table 4: Proposed DNI Works and Potential Impacts DNI Size and Length Estimated Road widths Level of Area period of disturbance access (low, disruption to medium, businesses high) DNI TOTAL: Approximately 2,257 km of 75-140mm, and 291km of 150-600mm to 1000 mm dia. pipes DNI 1 Primary: 300-500mm (1408m); Secondary: 150- 1-3 days 3-10 meters Low 400mm (18595m); Tertiary: 50-100mm (111445m)

DNI 2 Primary: 300-500mm (803m); Secondary: 150- 1-3 days 3-10 meters Low 400mm (10611m); Tertiary: 50-100mm (63595m)

DNI 3 Primary: 300-500mm (932m); Secondary: 150- 1-3 days 3-10 meters Low 400mm (12311m); Tertiary: 50-100mm (73782m)

DNI 4 Primary: 300-500mm (741m); Secondary: 150- 1-3 days 3-10 meters Low 400mm (9787m); Tertiary: 50-100mm (58655m)

DNI 5 Primary: 300-500mm (1004m); Secondary: 150- 1-3 days 3-10 meters Low 400mm (13264m); Tertiary: 50-100mm (79494m)

DNI 6 Primary: 300-500mm (1000m); Secondary: 150- 1-3 days 3-10 meters Low 400mm (13213m) Tertiary: 50-100mm (791855m)

DNI 7 Primary: 300-500mm (915m); Secondary: 150- 1-3 days 3-10 meters Low 400mm (12084m); Tertiary: 50-100mm (72421m)

DNI 8 Primary: 300-500mm (1509m); Secondary: 150- 1-3 days 3-10 meters Low 400mm (19935m); Tertiary: 50-100mm (119472m) DNI 9 Primary: 300-500mm (642m); Secondary: 150- 1-3 days 3-10 meters Low 400mm (8474m); Tertiary: 50-100mm (50783m)

DNI Primary: 300-500mm (351m); Secondary: 150- 1-3 days 3-10 meters Low 10 400mm (14636m); Tertiary: 50-100mm (27784m)

DNI Primary: 300-500mm (445m); Secondary: 150- 1-3 days 3-10 meters Low 11 400mm (5872m); Tertiary: 50-100mm (35193m) dia = diameter, DNI = Distribution Network Improvement, km = kilometer, m = meter, mm = millimeter

8. The following mitigation measures are proposed in the EMP to avoid and/or reduce the impacts to businesses during linear pipe works:

(i) Provide at least 1–2 weeks prior advanced notice to community along the stretch and conduct awareness campaigns in coordination with contractor, DSC, and Community Participation consultant. Distribute project information. (ii) Maintain access to avoid disturbance to residents and businesses by providing planks and leaving spaces for businesses and residents to maintain access. (iii) Manage traffic flows as per traffic management plan prepared by the contractor in coordination with local authorities and communities, and conduct works at night where possible. (iv) Limit amount of time of open trenches and complete works quickly where lots of businesses are located. (v) Avoid full street closure to extent possible. (vi) Provide employment opportunity to the affected people. Place Kathmandu Upatyaka Khanepani Limited (KUKL) phone hotline in signs on visible areas. Make community fully aware of grievance mechanism and provide

contact info of Project Implementation Directorate (PID) and KUKL branch offices. (vii) Contractors to assist vendors and hawkers in shifting to alternative location

9. Business Survey. In order to estimate the scale of temporary impacts during construction and to come up with a budget for compensation, a survey of businesses was undertaken in December 2009 to determine the daily income from different types of business and hawkers in the DNI zone. A total of 55 shops of 33 different types and 12 hawkers of 6 different types were randomly interviewed in the DNI area. In selecting the shops to be interviewed, different categories such as large, medium and small were chosen on both minor and major roads. The ADB mission also conducted a rapid business survey during March 2011 along BDS routes.

10. Table 5 summarizes the occupants within selected proposed alignments of the DNI. Based on discussions with local contractors and DSC working on the DNI pilot, it is assumed that 20% of streets in the DNI would experience full closure, requiring compensation.

11. Daily Income Estimates for Permanent Shops. Based on the survey of 55 permanent shops in the pilot DNI area, the average daily income of shops surveyed after deducting rent is NRs 1,154 per day (or approximately $16.25/day).5

Table 5: Business Survey of Permanent Shops in the DNI Pilot Area Type of Owner/ No. of persons Average daily S.N. Location Address business Tenant employed profit 1 Mitra Plaza, Jay Bageshowri,Khadya Grocery Tenant 2 1,200 Bhandar, Mitra park 2 Mitra Plaza, Mitra park Grocery Tenant 1 1,250 3 Mitra Park, Mitra plaza, Bishnu Grocery Tenant 1 500 Kirana 4 Mitra Park, Mitra plaza Grocery Tenant 1 1,500 5 Kalakar Marga, Mitra park General store Tenant 0 1,500

6 Hira Cold Store, Mitra Park General store Owner 0 1,000 7 Dharma Bhakta Marga 521, Pani General store Tenant 0 1,000 Tanki Marga 8 Jaya Bageshowri, Rosina Store General store Tenant 0 1,000 9 Chandra Binayak Marga 550, House General store Owner 0 1,000 number 45, Block number 5 ka 10 Chabel Junction, Chandra Binayak General store Owner 0 1,100 Marga, House number 42, Block number 5 ka 11 Chabel Junction, Chakra Path readymade Tenant 0 500 clothes 12 Chandra Binayak Marga Chabel clothes Tenant 0 1,250 13 Chandra Binayak Marga, Tayari readymade Tenant 0 1,250 Poshak, Chabel clothes 14 Chakra Path, Chabel readymade Tenant 3 2,000 clothes

5 The exchange rate used is $1.00 = NRs 71.00.

Type of Owner/ No. of persons Average daily S.N. Location Address business Tenant employed profit 15 Chandra Binayak Marga, New readymade Tenant 0 1,250 Ambika Fancy Store, Chabel clothes 16 Chandra Binayak Marga, Bhimsen clothes Tenant 0 850 Mandir, Chabel 17 Chandra Binayak Marga- 286, Block Vegetables Tenant 0 500 5 ka, House number 160, Chabel 18 Dharma Bhakta Marga, Sifal Vegetables Tenant 0 700 19 Mitra Park, Chakra Path Hotel and Tenant 5 1,300 sweets 20 Kutubahal, Lamapokhari-7 small hotel Tenant 0 800 21 Chandra Binayak Marga, Ganesh Restaurants Tenant 3 1,350 than, Narayani Restaurant 22 Chandra Binayak Marga, Chabahil medicine Tenant 7 1,500 Medical 23 Dharma Bhakta Marga, Sifal medicine Tenant 2 1,500 Junction 24 Budhanga Marga, Mitra Park medicine owner 0 750 25 Dharma Bhakta Marga, Sifal Newspaper Tenant 0 500 Junction seller 26 Chandra Binayak Marga, Books and Tenant 2 1,500 Ganeshthan Sindhu Books Stationary 27 Kutubahal, H. N. 142, B.N. 5 Kha, Books and Tenant 0 500 Kutubahal Marga Stationary

28 Chabel Junction, Chabel Chakra Books and Tenant 2 650 Path Stationary 29 Budhanga Marga, Mitra Park Cyber Tenant 1 1,250 30 Jaya Bageshowri, Chakra path (4), tailoring Owner 3 550 5367, Jya bageshowri Everest Jean Tailoring Center 31 Dharma Bhkta marga, Lama Pokhari tailoring Tenant 0 250 32 Chabel Junction, Chabel Chakra Mobile shop Tenant 2 1,100 path 33 Mitra Park, Mitra Park Marga Mobile repair Tenant 1 2,500 34 Dharma Bhkta marga, Sifal Motor cycle Owner 10 5,000 repairing 35 Chabel, Chakra path barber Tenant 1 300 36 Dharma Bhkta Marga, Lama Pokhari, barber Tenant 0 250 Kutubhahal 37 Jaya bageshowri Marga Sweets Owner 2 1,000 38 Chandra Binayak Marga, Ganesthan, Sweets Tenant 10 1,300 Chabel 39 Bhandarkhal Marga, Sifal, Jaya Metals Tenant 0 800 Shree Metal workshop 40 Budhanga Marga -85, Mitra park Cement Tenant 3 1,500 41 Chabel junction, Shree Pashupati Utensils Tenant 4 2,000 Madhyamik Vidyalaya 42 Jaya bageshowri Marga, Gol Dhunga Utensils Owner 0 500 43 Pani Tanki Marga, Sifal Meat Tenant 0 500

Type of Owner/ No. of persons Average daily S.N. Location Address business Tenant employed profit 44 Chandra Binayak Marga, Chabel Meat Tenant 2 600 Ganeshthan 45 Jaya bageshowri Marga- 213 Shoe repair Tenant 3 500 46 Chandra Binayak Marga, Chabel Bangles Tenant 4 800 Ganeshthan - 7 47 Chabel, Chakrapath Ornament Tenant 0 800 48 Chabel, Mitra Park Bathroom Tenant 4 2,000 fittings 49 Chabel, Chabel chakra path Tea Tenant 0 550 50 Mitra Park, Chakra path motorcycle Owner 1 800 reconditioning 51 Chandra Binayak Marga, Electrical Tenant 0 800 Ganeshthan,Chabel 52 Chandra binayak Marga, lama Cosmetics Tenant 0 600 Pokhari, Chandra Binayak Cosmetics 53 Chandra Binayak Marga, Lama Gas depot Tenant 4 700 Pokhari 54 Dharma Bhakta Marga, Sifal Petrol pump Owner 8 6,000 55 Chabel Stupa, Chabel Mobile shops Tenant 0 800 DNI = Distribution Network Improvement.

12. Daily Income Estimates for Hawkers. Based on the survey of 12 hawker stalls in the pilot DNI area, the average daily income of hawkers surveyed after deducting rent is NRs 463 per day (or approximately $6.50 per day).6

Table 6: Business Survey of Hawkers in DNI Pilot Area Site Occupy Permanent/ Means of S.N Type of Daily Location Temporary/ selling the . Merchandise Full/Half profit Frequency Mobile product day Jaya 1 Fruit Everyday Full day Temporary 400 4 wheel cart Bageshowri Jaya less than 2 Fruit Most days Mobile 250 cycle Bageshowri 2 hr Jaya temporary 3 Vegetables Everyday Full day Temporary 900 Bageshowri shops Jaya temporary 4 Vegetables Everyday Full day Temporary 500 Bageshowri shops

Jaya temporary 5 Tailoring Everyday Full day Permanent 300 Bageshowri shops

Jaya 1-2 days 6 Peanut Full day Mobile 300 4 wheel cart Bageshowri p/w 7 Chabel chowk Fruit Everyday Full day Mobile 400 4 wheel cart 8 Chabel chowk Fruit Everyday Full day Mobile 500 4 wheel cart Chabel bus 9 Hot Food Everyday Full day Temporary 300 4 wheel cart stop Chabel bus 10 Hot Food Everyday Full day Temporary 800 4 wheel cart stop

6 The exchange rate used is $1.00 = NRs 71.00.

Chabel 11 Clothes Everyday Full day Permanent 500 Foot path junction 12 Chabel Clothes Everyday Full day Temporary 450 Foot path DNI = Distribution Network Improvement, hr. = hour

III. SOCIOECONOMIC INFORMATION AND PROFILE

A. Socioeconomic Profile of Kathmandu Valley

13. The Kathmandu Valley includes the 3 districts of Kathmandu, Lalitpur and Bhaktapur. These include one Metropolitan city and 4 Municipalities and 38 Village Development Councils. Kathmandu Metropolitan area has the highest population and households followed by Lalitpur and Bhaktapur municipalities.

Table 7: Household Profile in Kathmandu Valley Metro/Sub-metro/ Population Average size Municipality and Male Female Total Total of Literacy VDCs covered Households Households rate Kathmandu Metro and 470,433 416,301 836,734 197,280 4.5 82.6 VDCs Kirtipur Municipality and 34,158 31,359 65,517 14,646 4.5 73.7 VDCs Bhaktapur Municipality 59,312 58,012 117,324 20,703 5.7 69.2 and VDCs Madhyapur Thimi 24,747 23,004 47,751 9,551 5.0 72.7 Municipality Lalitpur Sub- Metro and 116,829 111,003 227,832 47,823 4.8 80.9 VDCs VDC = Village Development Council. Source: Compiled from Census 2001, Central Bureau of Statistics.

14. Social Classification. According to 2001 Census, the majority of the people living in the Valley are Hindus (76%) followed by Buddhist (21%). The percentage of other religions living in the valley is minimal. The households are divided into different ethnic groups such as Newar, Brahmin, Chettri, Tamang, and Magar. Newar are the prominent inhabitants followed by Brahmin, Chettri, Tamang, and Magar. These ethnic groups are not at the same level of socioeconomic development. In the Kathmandu Valley, Newar are termed as an advanced indigenous people group. This group comprise about 41% of the valley population. Besides Newar, Brahmin (18%), and Chhetri (15%) are the major ethnic groups. Similarly, Tamang constitute about 6% and Magar hold 3% of the total population of the valley.

15. Age. The age group between 15 to 44 years (economically active) constitute about 56% of the valley population. The other main age group is between 5 to 14 years. Only about 5% of the population are over 60 years old. There are no significant differences in the percentage of age wise distribution in KUKL service areas.

16. Health. The number of health facilities owned by the government or provided by non government organizations (NGOs) and the private sector is relatively better in Kathmandu than in other districts. More health institutions are available in Kathmandu than in Lalitpur and Bhaktapur district. However, the population served by the number of health institutions in Kathmandu is less (1:9,574) than in Bhaktapur (1:5,637) or Lalitpur (1:4,119). It shows that the number of health institutions is low in comparison to the size of population in Kathmandu.

17. Education. The Kathmandu Valley has long been considered the centre for higher education in Nepal. In 2007, there were 6,106 high school level and 474 higher secondary, college and university level education institutions. The number of students enrolled during the period at high school level and higher education level were 573,779 and 156,828 respectively.

18. Employment. The economy of the Kathmandu Valley is based on trade, commerce and manufacturing industries like carpets and garments. Other economic sectors are agriculture, education, transport, hotels and restaurants. Tourism is also a key component of the valley’s economy. However, in the rural areas, the economy is still based on agriculture.

19. Economically Active Population. About 53% of the total population aged 16 years and above in the valley are economically active (Census 2001). Majority of the population of the Kathmandu Valley are engaged in agriculture and forestry (36%). The other major industries are manufacturing (17%), commerce (16%), construction (4%), and transportation/communication (3%). Table 8 summarizes the economic activities in the urban areas of the Kathmandu Valley. About 34% of households are engaged in small-scale non–farm activities. Lalitpur Municipality has the highest percentage (50%), whereas Kirtipur Municipality has the lowest (13%). Among the households engaged in non-farm activities, nearly 45% of the households are engaged in trade and business followed by services (32%) and manufacturing (9%). Nearly 50% of the households of Kirtipur and Kathmandu are engaged in trade and business.

Table 8: Household in Non-Farm Economic Activities in Kathmandu Valley Municipalities Percentage of Type of activities Households Manufacturing Trade/ Transport Services Others engaged in non- Business farm activities Lalitpur 50.18 13.25 33.22 4.29 42.37 6.86 Bhaktapur 40.83 13.24 38.55 4.26 26.54 17.40 Madhyapur Thimi 35.02 11.39 41.88 4.48 23.26 18.98 Kathmandu 31.57 6.86 49.49 3.49 30.26 9.90 Kirtipur 13.34 9.72 51.42 2.84 22.83 13.19 Total 34.43 9.02 44.66 3.76 32.41 10.14 Source: Population census 2001 (selected urban tables), Central Bureau of Statistics 2003.

20. Poverty. According to the 2001 census and Nepal Human Development Report 2004, the poverty status of the Kathmandu Valley is lower than the national level. Table 9 indicates the human development index in the Kathmandu Valley compared with the national values.

Table 9: Kathmandu Valley Development Indicators Districts Human Development Human Poverty Index Gender-related Development Index (HDI) (HPI) Index (GDI) All Nepal 0.471 39.6 0.452 Kathmandu 0.652 25.8 0.635 Lalitpur 0.588 25.0 0.569 Bhakltapur 0.595 29.9 0.578 GDI = Gender-related Development Index, HDI = Human Development Index, HPI = Human Poverty Index. Source: Census 2001, Nepal Human Development report by UNDP 2004.

21. Slums and Squatter Settlements. The rapid population growth has created a number of slums and squatter settlements in the Kathmandu Valley. Table 10 summarizes the findings of a survey conducted by LICSU, KUKL during 2008. There were 39 squatter settlements and 137 slums in the Kathmandu Valley on which 40,237 population live in 8,846 households. Of these, 22% had no access to piped water supply and none had adequate sanitation.

Table 10: Slums and Squatter Settlements in Kathmandu Valley Type of Residence No. of Total Average Percentage of Households Population Household size Households without piped water supply Slums Bhaktapur Municipality 754 3,274 4.34 32 Madhyapur Thimi Municipality 382 1,981 5.19 85 Lalitpur Sub - Metropolitan 391 1,866 4.77 62 Kathmandu Metropolitan 3,784 16,575 4.38 58 Kirtipur Municipality 1,674 7,767 4.64 64 Squatters

Kathmandu Metropolitan 1,861 8,774 4.71 95 Total 8,846 40,237 4.5 21.98 Source: Mapping of Slums, Squatters and Stand Posts in Kathmandu valley updated by LICSU, KUKL, June 2008, AVIYAAN Consulting (P) Ltd.

B. Socioeconomic Profile of the Kalopul Distribution Network Improvement (DNI) Pilot Area

22. The DNI pilot area designed under TA 4893-NEP is located in the ward No.7 and some part of ward No.8 of Kathmandu Metropolitan City. The present population of this area is estimated to be 22,400 with about 4,000 households. It comprises of about 100 hectares. The major settlement names are Sifal, Chabel, Gagahiti, Bulbule, Jayabageshowri, Mitrapark, Kalopul, Binayak Tole, Katubahal, Panika Tole, Ganeshthan, Lamapokhari, Mirmire Tole, Adarsha Basti.

23. The business survey in the DNI pilot area found the existence of about 900 business/shops of different categories like groceries, general stores, clothes, vegetables, readymade garments, small hotels/restaurants, hardware, stationeries, medicine, sweets, utensils etc. During the business survey, it was observed that there were about 60 hawkers in total located at different road junctions. They were selling fruits, seasonal vegetables and readymade clothes. Some of them had small tea shops or hot food stalls. The hawkers were concentrated mainly in the Jayabageshowri and Chabel junction areas.

24. Social Profile of DNI Pilot Area. The average family size of the DNI area is about 5.6 per family. The average family size of the Kathmandu Municipality is 4.4 where as the national average is 5.45. Table 11 shows that the major population group of the households lies between the ages of 16 to 45 (55%) followed by the ages between 46 to 65 (18%). The percentage of children below 15 years is about 18%.

Table 11: Demographic Features of the Sampled Households Study No. of Population House Population by Age Groups (in percent) area Househo Male Female Tota hold NA 0-15 16-45 46-65 65 and Total lds l size over DNI 219 609 615 1,22 5.6 0.2 17.7 55.1 18.2 8.8 100 pilot 4 area Source: Field Survey, November 2009.

25. Social Classification. Brahmin, Newar, Chettri are the major ethnic group residing in the DNI pilot area. The population structures of the sampled households show that Brahmin, Newar, Chettri occupied 41%, 34% and 11% of the total household of the project area respectively. Other prominent ethnic groups are Gurung (5%), and Rai (3%).

26. Economic Activities. The sampled household survey reveals that most of the household members are engaged in services (18.4%) followed by trade and business (9.9%). About 32% of the economically active population are students. Other major activities are labourers within and outside the country. Similarly, 17% of family members were engaged in household work. Details of the economic activities of the sampled household members are given in Table 12. Table 12: Economic Activities of Household Members DNI Service Service Trade Labor Labor Studen Dependent House None Pilot (Public (Private and abroa t (children) Hold area ) ) business d work Male 48 (3.9) 104 77 (6.3) 17 24 (2) 208 15 (1.2) 2 113 (8.5) (1.4) (17) (0.2) (9.2) Female 20 (1.6) 51 (4.2) 44 (3.6) 4 11 182 10 (0.8) 207 84 (13.6) (0.3) (0.9) (14.9) (17) Total 68 (5.6) 156 121 (9.9) 21 35 390 25 209 197 (16) (12.8) (1.7) (2.9) (31.9) (2.1) (17) Note: Figures in the parenthesis indicates the percentage. Source: Field Survey, November 2009.

27. Income Sources. The field survey findings revealed that the majority of the households depended on more than one source of income for their livelihood. Income from private and public services was identified as the main source of income of the interviewed households followed by house rent and trade and business. Other major sources of income of the household were pension and sale of agriculture and livestock products. Out of the total 1,222 household members of the DNI area, 424 (35%) people are actively engaged in the above income generating activities. Among the total economically engaged population, the number of female is 136 (32%) in comparison to male 288 (68%).

28. Poverty Status. The survey found the mean annual income of the households was NRs.370,144. The average per capita annual income was NRs.68,545. On the basis of the family size and the minimum income to secure poverty level, the minimum household income was fixed to NRs.56,000. Based on this calculation, about 4 households in DNI area were identified as being below the poverty line. Their household income falling below NRs.60,000 per annum.

29. Household Income and Expenditure. It has been reported that the household income of the surveyed area derives mainly from services (government and private), house rent and trade and business which constitute about 29%, 28% and 22% respectively of the total income. The income from remittances, labour/wages, local farm/livestock income-generating opportunities are limited. Pension is also one of the main sources of income of the households which constitute about 9% of the total source of income of the surveyed households.

30. The main features of the reported sources of income and expenditure recorded in the survey are detailed in Tables 7 and 8 and are summarized as follows: (i) The annual average per capita income of the surveyed DNI area ranges from a minimum of NRs.38,571 to a maximum of NRs.162,000 where as the annual average per capita expenditure ranged from NRs.32,760 to NRs.92,000. (ii) The major source of income is government and private services (29%), house rent (28%), trade and business (22%). Other sources of income included pension, remittances and income from labor (e.g. skilled and unskilled) within the country and outside the country. (iii) Maximum expenditure was for food including daily consumption items (47.9%) followed by education and health (28.9%).

31. The study in 2009, found that the mean expenditure on food of the household was Rs. 8,174 resulting the per capita expenditure was Rs 2,019.

Table 13: Reported Sources of Income of the Households S.N. Income Source Percentage of total annual income 1 Agricultural /Livestock 4.05 2 House rent 27.86 3 Trade/ business 21.59 4 Self employed/ industries 0.35 5 Labor/Wages 2.23 6 Services (government/private) 28.91 7 Pension 8.57 8 Remittances (Labor abroad) 2.62 9 Others 3.83 Total 100 Source: Field Survey, November 2009.

Table 14: Reported Expenditure by Type of the Households S.N. Expenditure Item Percentage of total annual expenditure 1 Food and daily consuming items 47.9 2 Education /health 28.9 3 Electricity bill 6.2 4 Water tariff 1.5 5 Others 15.5 Total 100 Source: Field Survey, November 2009.

C. Gender Considerations

32. The project will provide universal connections including poor and vvulnerable households, which include female-headed. Employment will also be granted to females with equal pay to men and women. In addition to the measures provided for addressing the gender concerns of the affected households, the Resettlement Plan will be implemented in consonance with the Gender Action Plan for the project.

33. Women Headed Households. According to 2001 census, about 15% of households have been reported as women headed. In the urban areas it was s little bit more than the country as a whole i.e. 17% in 2001. The survey in the DNI area indicated that about 36% were women headed households. Of the total female headed households, about 20% were widows.

34. Literacy. There is still some difference in the literacy between male and female. It was found that about 88% of females were literate in comparison to 97% of the male population.

35. Economic Activity. About 17% of the women are housewife in the study area. Only11% women of the total household members are involved in the income earning activities compared to 22% of the male members. They are involved particularly in the service sector, trade and business and labour inside and outside the country. It has been reported that in addition to the economic activities outside the home, women are extensively involved in household activities like cooking and cleaning, washing clothes, child care, care of elderly etc.

36. Decision Making. The respondents were also asked about the involvement of women in decision making of household matters like finance, education, health care, purchase of assets, day to day household matters, etc. It was found that women were involved in the decision making of almost all household matters.

37. Participation. The participation of women in social, political, religious, community gatherings in Nepal has increased in recent years. During the survey, the respondents were also asked about the gender participation in community meetings. The percentage of female alone in social/religious gatherings was slightly more than the men, whereas the men alone participation in the community gatherings is much higher than females. However, around 50% of both male and female together participate in social/religious work.

IV. INFORMATION DISCLOSURE, CONSULTATION, AND PARTICIPATION

A. Public Consultation

38. As part of the feasibility studies, an extensive consultation program with key stakeholders was carried out, in line with the requirements pertaining to environment and social considerations of ADB. The tools used for consultations were stakeholder workshops and meetings, interviews, structured questionnaires, and focused group discussions (FGD). These consultations provided inputs in identification of the felt needs of the communities, and the relevant stakeholders.

39. The enumerators, during socio-economic household’s survey, informed all the 219 households about the project activities such as rehabilitation of old pipes and laying of new pipelines in the main roads and inner roads of the DNI area. They were informed about the possible impacts such as disruption to the local inhabitants and pedestrians during construction. During the topographical survey, the local people were also informed about the future project activities. During the business survey, the business owners and the shop keepers were informed about the possibility of disruption to the business. They were informed that the survey was a preliminary activity to determine possible profit losses if full closure of the road was required during construction. They were also informed that future public consultations and disclosures would be held regarding possible disruption to businesses and issues of compensation modality would be discussed.

40. A number of household surveys and community consultations have been undertaken in the Kathmandu Valley as part of the preparation and design of the Melamchi Water Supply Project to determine water sector priorities and needs of the public in general and specific communities.

41. A baseline survey was also recently completed in 2009 by the University of Tokyo, as part of TA4893-NEP supported by PPIAF, which studied the Kathmandu Upatyaka Khanepani Limited (KUKL) services to customers in the Kathmandu Valley to provide guidance on present water use and future demands. The Project Affected People of Kathmandu Valley have been informed from time to time about the construction of reservoirs, water transmission lines, the water treatment plant and land acquisition together with the project’s resettlement, rehabilitation and compensation modalities. The Melamchi Water Supply Project (MWSP) had formed a NGO committee comprising of donors, Melamchi Water Supply Development Board (MWSDB), and NGOs, which held monthly meetings in Kathmandu.

B. Information Disclosure

42. To provide for more transparency in planning and for further active involvement of displaced persons and other stakeholders the project information will be disseminated through disclosure of resettlement planning documents. The information will be made available at a convenient place including the offices of PID, KUKL main office and branch offices, and Village Development Council (VDCs). The summary of the Resettlement Plan and the entitlement matrix will be translated into the local language. A copy of the Resettlement Plan will be disclosed on the ADB and project related websites.

C. Continued Consultation and Participation

43. The Project Implementation Directorate (PID) will extend and expand the consultation and disclosure process during the detailed design stage and the construction period of the project. A community awareness firm will be recruited to ensure ongoing consultations and public awareness during the project implementation. This will coordinated with the PID, DSC, and contractors to ensure the communities are made fully aware of project activities in all stages of construction. A community participation action plan is also prepared for the project and is to be implemented by the recruited firm in coordination with the PID and DSC safeguards staff. Community groups such as Tole Committees and Vendor Associations will be consulted and made aware of the civil works and project activities prior to construction.

V. GRIEVANCE REDRESS MECHANISM 44. A grievance redress mechanism (GRM) will be established to receive, evaluate and facilitate the resolution of affected people’s concerns, complaints, and grievances about the social and environmental performance at the level of the project. The GRM is aimed to provide a trusted way to voice and resolve concerns linked to the project, and to be an effective way to address affected people’s concerns. The GRM for the project is outlined below and consists of three levels with time-bound schedules and specific persons to address grievances.

45. First Level of GRM: The first level and most accessible and immediate venue for the fastest resolve of grievances is the contractors and supervision consultants on site. Prior to construction of any works, the community awareness consultants, DSC, and contractors are to hold local community meetings to inform the local residents and businesses that works are to create temporary disturbance and to inform them of the project. If a local area committee (Tole

Committee) exists in the area, they should also be informed and given awareness of the project. If any complaints arise, the contractors, DSC, and PID can immediately resolve the complaint on site and if necessary with the assistance of the local Tole Committee. The PID Branch Offices can also be involved in grievance redress at this stage. The KUKL hotline and PID office phone number will be posted in public areas within the project area and construction sites. Any person with a grievance related to the project works can contact the Project to file a complaint. The PID Branch Offices are staffed with a Consumer Relations Officer to field and resolve complaints. The Consumer Relations Officer or Branch Manager will document the complaint, and immediately address and resolve the issue at field-level with the contractor within 1-2 days, if the complaint remains unresolved at the field level. The Branch Manager may seek the assistance of the DSC safeguards specialists (e.g., Environmental Specialist or Social Safeguards Specialist) to help resolve the issue. The Consumer Relations Officer or Branch Manager will notify the PID Safeguards Unit that a complaint was received and whether it was resolved. The Branch Manager will fully document the following information: (i) name of the person, (ii) date complaint was received, (iii) nature of complaint, (iv) location, and (v) how the complaint was resolved.

46. Second Level of GRM: Should the grievance remained unresolved, the Branch Manager will forward the complaint to the PID Safeguards Unit. The person filing the grievance will be notified by the Consumer Relations Officer or Branch Manager that the grievance was forwarded to the PID Safeguards Unit. For resettlement related issues, the Resettlement Officer will address the grievance; for environmental related issues, then the Environmental Officer will address. Grievances will be resolved through continuous interactions with affected persons and the PID will answer queries and resolve grievances regarding various issues including environmental, social, or livelihood impacts. Corrective measures will be undertaken at the field level by the PID safeguards staff within 7 days. The relevant Safeguards Unit staff will fully document the following information: (i) name of the person, (ii) date complaint was received, (iii) nature of complaint, (iv) location, and (v) how the complaint was resolved.

47. Third Level of GRM: Should the grievance remain unresolved, the PID’s Project Director, will activate the third level of the GRM by referring the issue (with written documentation) to the local Grievance Redress Committee (GRC) of the KUKL, who will, based on review of the grievances, address them in consultation with the PID Safeguards Unit, Project Director, affected persons. The local GRC will consist of members of the PID, affected persons, local area committee, amongst others determined to provide impartial, balanced view on any issues. The GRC should consist of around five persons. A hearing will be called with the GRC, if necessary, where the affected person can present his/her concern/issues. The process will promote conflict resolution through mediation. The local GRC will meet as necessary when there are grievances to be address. The local GRC will suggest corrective measures at the field level and assign clear responsibilities for implementing its decision within 15 days. The functions of the local GRC are as follows: (i) provide support to affected persons on problems arising from environmental or social disruption; asset acquisition (if necessary); and eligibility for entitlements, compensation and assistance; (ii) record grievances of affected persons, categorize and prioritize them and provide solutions within 15 days; and (iii) report to the aggrieved parties about developments regarding their grievances and decisions of the GRC. The PID safeguards officers will be responsible for processing and placing all papers before the GRC, recording decisions, issuing minutes of the meetings and taking follow up action to see that formal orders are issued and the decisions carried out.

48. Fourth Level of GRM: In the event that a grievance is not addressed by the contractor, DSC, Branch Office, PID or GRC, the affected person can seek legal redress of the grievance in

21 the appropriate courts, the fourth level of the GRM, which is the formal legal court system. The grievance redress mechanism and procedure is depicted in Figure 2.

Figure 2: Grievance Redress Mechanism (GRM)

Affected Person

1-2 Days Field Level: Grievance 1st Level Grievances Contra Redres ctor, sed DSC, Branch Not Redressed Office.

PID Grievance

Safegu 7 Days Redres 2nd Level Grievances ards sed

Unit

Not Redressed

Grievance Grievance 15 Days Redress Redres 3rd Level Grievances Committe sed e

Not Redressed

4th Level Grievances Higher Authority/ Court of Law

VI. POLICY AND LEGAL FRAMEWORK

49. ADB Safeguards Policy Statement (2009). The three important elements of the ADB’s Safeguards Policy Statement (SPS) are (i) compensation to replace lost assets, livelihood, and income; (ii) assistance for relocation, including provision of relocation sites with appropriate facilities and services; and (iii) assistance for rehabilitation to achieve at least the same level of well-being with the project as without it. In addition, the absence of legal title to land should not be a bar to compensation. ADB SPS requires compensation prior to actual income loss. In cases where the contractors know which streets will be closed and for how long, compensation can be paid out to the businesses prior to construction. However, given the nature of the temporary impacts and the difficulty in predicting the exact duration of road closure during construction, compensation may be provided to the affected businesses immediately after works are completed for the period of duration greater than five days. The DSC Social Safeguards Specialist will confirm payment made by PID for each business which qualifies under the criteria.

50. Government of Nepal Laws. As there is no land acquisition, the government’s policies (e.g., The Land Acquisition Act, 2034 (1977) are not relevant for this project. The Government of Nepal has no policy to compensate for temporary impacts during construction.

VII. ENTITLEMENTS, ASSISTANCE AND BENEFITS

A. Eligibility

51. Compensation eligibility is limited by a cut-off date as set for this project on the day of the beginning of the income survey (Appendix 5) prior to commencement of civil works. Once a contractor confirms a road is likely to be fully closed (no access to traffic) for more than five days, the DSC Social Safeguards Specialist will conduct an income survey of businesses along the relevant sections.7 The DSC Social Safeguards Specialist may recruit enumerators to assist in this activity. An income survey will serve as the cut-off date. All businesses identified in the project-impacted areas (sections ready for construction) on the cut-off date will be entitled to compensation for their lost income based on the tax record or, in its absence, comparable rates from registered businesses of the same type with tax records, or for shops not qualifying under these categories (hawkers, vendors, etc.), the option of using the actual income based on survey followed by a verification of the income data based on comparable incomes in the project area..

52. Hawkers or businesses who settle in the affected areas after the cut-off date will not be eligible for compensation. They, however will be given sufficient advance notice (at least 1 week), requested to vacate premises and dismantle affected structures prior to project implementation. Contractors will provide shifting assistance to any vendors needing help. The project will recognize both licensed and non-licensed vendors, and titled and non-titled households.

B. Entitlements

53. The entitlement matrix (Table 15) summarizes the main types of losses and the corresponding entitlements in accordance with the ADB policies. In addition to temporary impacts, the entitlement matrix also covers damages to structures during construction.

7 Compensation is only applicable to businesses experiencing disturbance on fully closed roads.

Table 15: Entitlement Matrix Type of Loss Entitlement Unit Description of Entitlement and Implementation Remarks Responsible Procedures Institution 1.Damages Caused During Construction 1.1 Government and Titleholder Where damages do occur to private, community, or Extreme care should be taken Contractor private structures, Tenant government property as a result of construction by the contractors to avoid infrastructures works, the cost of restoring to at least their original damaging any properties Informal settlers on condition will be the responsibility of the contractor during construction. government land as part of their contract. Compensation for the losses will be borne by the contractor 2. Community Facilities and Resources 2.1 Loss of Local community Restoration of affected community buildings and Extreme care should be taken Contractor Community structures to at least previous condition, or by the contractors to avoid structures replacement in areas identified in consultation with damaging any properties affected communities and relevant authorities during construction. Compensation for the losses will be borne by the contractor. Community structures include service roads, inner roads, temples, footpaths/trails, culverts, water points. 2.2 Loss of drinking Residents and businesses Immediate replacement and restoration of the The time gap between the Contractor water and sanitation water points construction of new system and transfer from the old system should be minimized. Alternative sources of water should be made available during the construction period.

Type of Loss Entitlement Unit Description of Entitlement and Implementation Remarks Responsible Procedures Institution 3. Temporary loss of income 3.1 Temporary loss Titleholder Businesses are entitled to compensation for each An income survey prior to DSC/PID of business licensed and non-licensed day of disturbance on fully closed roads. An construction will serve as the vendors, and titled and non- income survey will serve as the cut-off date. All cut-off date. titled households/tenant businesses identified in the project-impacted areas (sections ready for construction) on the cut-off date will be entitled to compensation for their lost income based on the tax record or, in its absence, comparable rates from registered businesses of the same type with tax records, or for shops not qualifying under these categories (hawkers, vendors, etc.), the option of using the actual income based on survey followed by a verification of the income data based on comparable incomes in the project area. Mobile hawkers and vendors will be assisted by contractors in moving to alternative locations during the period of construction. 3.2 Vulnerable Female-headed households, Vulnerable persons entitled to preferential Vulnerable persons to be DSC/PID persons and below poverty line HHs employment under the project. identified during income survey (the annual poverty line data is NRs 12,457 per capita/year or NRs 65,648 per household/year)

4. Structures 4.1 Temporary loss Temporary or semi- Advanced notice of at least 2 weeks Temporary shifting for 5-7 Contractor/ DSC/PID Rights to salvage materials from structure of structures in right permanent structures or days during period of stalls that belong to licensed Assistance in shifting to nearby location of way Allowed to return to original site after completion construction. PID and and non-licensed vendors, of construction works contractor will identify and titled and non-titled alternative site and help in households. shifting. DSC = Design and Supervision Consultants, PID = Project Implementation Directorate.

C. Determination of Compensation

54. Income. Businesses will be compensated for lost income on fully closed streets where customer access to shops is disrupted.16 Once a contractor confirms a road is likely to be fully closed (with disruption to customer access), the DSC Social Safeguards Specialist will conduct an income survey of businesses along the relevant sections. An income survey will serve as the cut-off date. All businesses identified in the project-impacted areas (sections ready for construction) on the cut-off date will be entitled to compensation for their lost income based on the tax record or, in its absence, comparable rates from registered businesses of the same type with tax records, or for shops not qualifying under these categories (hawkers, vendors, etc.), the option of using the actual income based on survey followed by a verification of the income data based on comparable incomes in the project area. A summary table of resettlement procedures is located in Appendix 7.

55. Compensation procedures. Paying compensation to the temporarily affected persons will take the following steps:

(i) Step 1. Conduct public awareness and information dissemination prior to construction works. This is to be done by the Community Awareness and Participation consultants. (ii) Step 2. The DSC to identify the roads in collaboration with contractor which will experience full closure and estimated period of closure. Two types of disturbance anticipated from full closure of roads: (a) partial disturbance, where there is no vehicular access but pedestrian access is maintained, or (b) full disturbance, where there is no vehicular and no pedestrian access. (iii) Step 3: The DSC social specialist is to then (a) conduct an income survey17 of shops along sections of road closure identified for full closure, (b) update the resettlement plan (identifying income and potential loss based on actual income losses), and (c) send the updated resettlement plan to ADB for review and approval after detailed designs are complete. (iv) Step 4: After ADB approval of the revised resettlement plan, the DSC Safeguard Specialist will distribute identity cards with compensation amount to the affected persons. (v) Step 5. Affected person can then collect payment at PID office or on site, based on PID discretion. (vi) Step 6. PID to issue a check to affected persons based on survey record and identity card prior to construction works (if feasible). All payments to be recorded for accounting purposes with signature of affected person to verify payment made. The Project Director to closely monitor payments with PID accounting office.

16 Compensation is only applicable to fully closed roads where customer access is disrupted leading to income loss. To the extent possible, contractors will identify these types of roads prior to construction. However, if during construction, a road not previously identified for full closure is unexpectedly required to be fully closed inhibiting customer access, the contractor is to immediately notify the DSC Social Safeguard Specialist and PID so that a rapid income survey can be conducted and compensation paid for period of disruption. 17 Compensation is based on lost income based on the tax record or, in its absence, comparable rates from registered businesses of the same type with tax records, or for shops not qualifying under these categories (hawkers, vendors, etc.), the option of using the actual income based on survey followed by a verification of the income data based on comparable incomes in the project area.

D. Vendor Assistance

56. Vendors requiring temporary shifting during construction period will be notified in advance and allowed to salvage all materials fort temporary shifting to alternative location. They will be allowed to return to the original location after construction is declared complete. Vendor assistance will take the following steps:

(i) Step 1. Identification of impacted vendors based on detailed design by DSC social specialist and PID safeguards unit in coordination with contractor. (ii) Step 2. Notify vendors at least 2-3 weeks in advance. Consult with local Vendor Associations if exist. (iii) Step 3. Identify alternative location nearby for affected vendors to continue their business. (iv) Step 4. Assistance by contractor to shift to new location. (v) Step 5. Assistance by contractor to return to original location after construction works complete.

E. Project Benefits

57. The project will support the delivery of much needed water to Kathmandu citizens and its surroundings. The project will support KUKL expand water services in its service area where affected businesses are part of the beneficiaries. Moreover, the project will employ local people during implementation.

VIII. INCOME RESTORATION AND REHABILITATION

58. Incomes of affected persons will be compensated based on losses experienced over five days of closure. Preferential employment will be offered to local people with preference to persons.

IX. RESETTLEMENT BUDGET AND FINANCING PLAN

59. The resettlement cost estimate for the project (Table 16) includes eligible compensation for temporary impacts to income. The Government financing will provide funds to support all compensation for lost income. The total estimated resettlement cost for the project is NRs 22,452,224 ($316,229). The government will make available or cause MPPW and KUKL to make available necessary budgetary and human resources to fully implement the Resettlement Plan.

60. The cost items are outlined below:

(i) For linear works, temporary loss of income to shops and businesses due to disturbance caused by construction for roads fully closed. Businesses are entitled to income compensation on fully closed roads where customer access is inhibited. (ii) Vulnerable persons entitled to preferential treatment in project related employment.18

18 A list of names of vulnerable persons will be submitted by the DSC to PID and contractors.

61. Based on discussions with contractors under the DNI pilot project, it is estimated (for budget purposes) that 20% of streets could experience full closure. During detailed design stage the number of days of full closure will be more clearly known, but in the DNI pilot project, most streets were closed no more than 3 days, according to the contractors and DSC. The pilot DNI covers an area of about 100 hectares with 900 shops. If 20% of these shops are affected due to fully closed roads an estimated 180 shops may require compensation. Given that the entire DNI area under the Project covers 1,820 hectares, it is estimated that 16,380 shops are located in the DNI project area. If 20% of these shops are affected due to fully closed roads an estimated total 3,276 shops may require compensation. Shops in BDS areas are unlikely to experience full road closure as the Ring Road is a major transportation artery but for budget purposes, an additional 1,000 shops are considered along BDS routes in the event closure or disturbance to businesses occurs. Therefore a total of 4,276 shops in the DNI and BDS are estimated to be impacted. Given the low impacting nature of sewer backlog connections, an estimated additional 500 shops (10% of estimated 5000 connections) are estimated for wastewater system improvement (WSI) works. Therefore, a total of 4,776 shops would be potentially impacted. Based on the survey of 55 permanent shops in the pilot DNI area, the average daily income of shops surveyed is NRs 1,154/day (or approximately $16.25/day). Businesses will be compensated for lost income for every day of disturbance over the fifth day of full street closure. For budgeting purposes it is estimated that for streets closed, it is conservatively estimated they will be closed an additional 3 days. The 3 days of closure are considered the eligible days for compensation. Therefore, for costing purposes, the budget required to pay for temporary income losses is estimated to be NRs 14,803,512 (or $208,500). It is estimated that 15% of the affected population is vulnerable (641 shops). For budgeting purposes, 8 days of costs are considered for compensation, as they may require shifting to alternative location for the period of disturbance, totaling NRs 5917,712 ($83,348). The total resettlement budget is therefore NRs 22,452,224 ($316,229).

Table 16: Summary of Estimated Land Acquisition and Resettlement Costs Estimated number Estimated Estimated number of days of Daily Income of shops in DNI Item compensation19 (NRs)20 project area21 NRs USD Assistance for income 3 1,154/day 4,776 loss22 16,534,512 232,880 Assistance for vulnerable 8 1,154/day 641 households (see footnote 19) 5,917,712 83,348 TOTAL 22,452,224 316,229 DNI = Distribution Network Improvement, USD = United States Dollars.

X. INSTITUTIONAL ARRANGEMENTS

62. The MPPW will be the executing agency responsible for overall strategic planning, guidance and management of the Project and for ensuring compliance with loan covenants. As part of institutional reforms under the ongoing loans, three water and wastewater organizations were created - Kathmandu Valley Water Supply Management Board (KVWSMB), the asset owner; KUKL, the asset operator and service provider; and Water Supply Tariff Fixation Commission (WSTFC), the regulator. KVWSMB will continue to discharge its responsibilities as asset owner of water supply and wastewater systems and monitoring of performance of KUKL as provided in the lease and license agreement between KVWSMB and KUKL. KUKL will be the implementing agency and the existing PID in KUKL will be responsible for (i) project planning, implementation, monitoring and supervision; (ii) reporting to KUKL Board of Directors, MPPW and ADB; and (iii) coordination of all activities in the Project. The experience of PID, KUKL in implementing subproject 2 of Melamchi Water Supply Project will be useful in taking advance actions for the Project. For safeguards, the PID has already established a Safeguards Unit staffed with environmental, social, and a legal specialist. The institutional roles and responsibilities are detailed in Table 17.

19 Businesses are entitled to income compensation for each day of disturbance on fully closed roads. For budgeting purposes it is estimated that streets will be closed for 3 days. It is estimated that 15% of the affected population is vulnerable (641 shops). For budgeting purposes, vulnerable persons losses are calculated for a total of eight days closure as they may require shifting to alternative location for period of disturbance. During implementation, income compensation is based on actual losses based on tax record or, in its absence, comparable rates from registered businesses of the same type with tax records, or for shops not qualifying under these categories (hawkers, vendors, etc.), the option of using the actual income based on survey followed by a verification of the income data based on comparable incomes in the project area. 20 Estimated daily income is based on the business survey conducted in the DNI pilot area. Compensation is based on actual income loss. The figures presented in Table 16 are for budget estimation purposes only and are purposefully conservative. 21 Given that the entire DNI area under the Project covers 1,820 ha, it is estimated that 16,380 shops are located in the DNI project area. If 20% of these shops are affected due to fully closed roads estimated total 3,276 shops will require compensation. BDS shops are unlikely to experience fully closed roads, but for budget purposes, an additional 1,000 shops are considered along BDS routes along the Ring Road. Therefore a total of 4,276 shops in the DNI and BDS are estimated to be impacted. Given the low impacting nature of sewer backlog connections, an estimated additional 500 shops are estimated for WSI works. Therefore, a total of 4,776 shops would be potentially impacted by the project a conservative estimate for budgeting purposes. 22 Estimated daily income is based on the business survey conducted in the DNI pilot area. During implementation, an income survey will serve as the cut-off date. All businesses identified in the project-impacted areas on the cut- off date will be entitled to compensation for their lost income based on the tax record or, in its absence, comparable rates from registered businesses of the same type with tax records, or for shops not qualifying under these categories (hawkers, vendors, etc.), the option of using the actual income followed by a verification of the income data based on comparable incomes in the project area.

Table 17: Institutional Roles and Responsibilities S.No. Activity Responsibility Project Initiation Stage 1 ADB website disclosure ADB 2 Disclosure of summary Resettlement Plan in local language PID/DSC 3 Finalization of BDS and DNI alignments PID/DSC 4 Update Resettlement Plan based on detailed design and PID/DSC/ADB send to ADB for review and approval prior to contract award. 5 Meetings at community/household level with displaced Contractor/DSC/Community persons Participation Consultant Resettlement Plan Implementation 6 Contractor to identify roads for full closure Contractor 7 Detailed income survey on streets identified for full closure DSC 8 Calculation of compensation and entitlements PID/Deputy Commissioner 9 Award of checks for compensation PID 10 Contractor to begin works 11 Grievances redressal PID 12 Internal monitoring PID ADB = Asian Development Bank, BDS = Bulk Distribution System, DNI = Distribution Network Improvement, DSC = Design and Supervision Consultants, PID = Project Implementation Directorate.

XI. IMPLEMENTATION SCHEDULE

63. Detailed design of DNI packages will begin in the second quarter of 2011, and for BDS, reservoir, and WSI in the second quarter of 2012. Construction is scheduled to commence in the first quarter of 2013 to be completed by end of 2016. All Resettlement Plans are to be updated during detailed design and reviewed and approved by ADB prior to contract award. The implementation schedule is shown in Figure 3.

Figure 3: Implementation Schedule

XII. MONITORING AND REPORTING

64. The DSC is to submit quarterly reports to PID whereas the PID will submit semi-annual monitoring reports to ADB. If any unanticipated environmental and/or social risks and impacts arise during construction, implementation or operation of the Project that were not considered in the Resettlement Plan, the government is to promptly inform ADB of the occurrence of such risks or impacts, with detailed description of the event and proposed corrective action plan; (i) report any actual or potential breach of compliance with the measures and requirements set forth in the Resettlement Plan promptly after becoming aware of the breach, and (ii) the government will ensure that no proceeds of the Loan are used to finance any activity included in the list of prohibited investment activities provided in Appendix 5 of the SPS.

65. The internal monitoring by PID will include: (i) administrative monitoring to ensure that all compensation as per the resettlement plan are paid and implementation is on schedule and problems are dealt with on a timely basis. Sample monitoring indicators are given in Appendix 2.

66. Monitoring will also include the following:

(i) Consultations with affected persons; (ii) Issues raised through the grievance redress mechanism; (iii) Status of compensation amounts and all assistance; and (iv) Progress of the Resettlement Plan implementation.

Appendix 1 32

APPENDIX 1: SAMPLE IDENTIFY (ID) CARD FOR ENTITLED PERSONS

SAMPLE IDENTITY CARD (NON-TITLE HOLDERS)

NAME OF THE SUBPROJECT: CRDP DATE:

Sl . No . Sl Address: PropertyIdentificationNumber NameHead of theEntitled of FamilyMembers& RelationshiptheFamily with head (years) Age F) Sex/ M ( Occupation MonthlyIncome VulnerableNon / Vulnerable TotalAffected AreaSqm. in TypeLoss of TypeStructure of DisplaceddisplacedNot / CompensationTotalcost of structure TotalAmountTk )- ( Compensation+Allowance Remark

Allowances-1(Shifting) Allowances-2(Transitional) Allowances-3(Income Restoration-Training) Allowances-4(Vulnerable) TotalAllowances 1 2 3 4 5 6 7 8 9 11 12 13 14 15 16 17 18 19 20 21 22 23 1

PHOTOGRAPH

TOTAL=

APPENDIX 2: SAMPLE MONITORING INDICATORS

S. N. Resettlement Plan Activities Progress Remarks A. Pre Construction Activities and Resettlement Plan Activities 1 Assessment of Resettlement impacts due to changes in project design (if required) 2 Preparation/ updating of Resettlement Plan based on changes in project design 3 Approval of updated Resettlement Plan from ADB 4 Disclosure of updated Resettlement Plan 5 Establishment of Grievance Redress Committee 6 Verification of displaced persons Census list; assessment on compensation and assistance, and readjustment B. Resettlement Plan Implementation 1 Payment of Compensation to affected persons 2 Special measures for Vulnerable groups 3 Reinstallation of public utilities 4 Records of Grievance Redressal 5 Temporary Relocation of Hawkers and Vendors C. Social Measures during Construction as per Contract Provisions 1 Prohibition of employment or use of children as labor 2 Prohibition of Forced or Compulsory Labor 3 Ensure equal pay for equal work to both men and women 4 Implementation of all statutory provisions on labor like health, safety, welfare, sanitation, and working conditions 5 Maintenance of employment records of workers ADB = Asian Development Bank, PID = Project Management Unit.

Appendix 2 Appendix

APPENDIX 3: PROJECT IMPLEMENTATION ARRANGEMENTS

3 Appendix Project Government of Nepal (Borrower) S t MPPW Project Steering Committee e Executing Agency ADB e r i KVWSMB n (Asset Owner) g KUKL (Asset Operator) C Board of Directors o m m Project Implementationi Directorate Operations

t t Project GM/MD/ED e Director e

Vice General Mannager DPD ADB DSC + DMSC DPM Management Engineering

Procur ement Finance QA/QC Design Constructi Technical Manager Finance Manager Others o Safeguards n Branch Branch Branch Branch Branch Branch Branch Branch Branch (Supervision(Supervision) (Supervision) (Supervision) )

ADB = Asian Development Bank, DPD = Deputy Project Director, DSC = Design and Supervision Consultants, GM/MD/ED = General Manager/Managing Director/Executive Director, KVWSMB = Kathmandu Valley Water Supply Management Board, KUKL = Kathmandu Upatyaka Khanepani Limited, MPPW = Ministry of Physical Planning and Works, QA/QC = Quality Assurance and Quality Control.

Appendix 4 35

APPENDIX 4: TRAFFIC MANAGEMENT PLANNING (TMP)

A. Principles for TMP around the DNI Construction Sites

1. One of the prime objective of this TMP is to ensure the safety of all the road-users along the work zone and to address the following issues: (i) The safety of pedestrians, bicyclists, and motorists travelling through the construction zone; (ii) Protection of work crews from hazards associated with moving traffic; (iii) Mitigation of the adverse impact to the road capacity and delays to the road- users; (iv) Maintenance of access to adjoining properties; and (v) Addressing issues that may delay the Project works.

B. Operating Policies for TMP

2. Figure 1 illustrates the operating policy for TMP of the DNI works.

1. Analyze the impact due to street closure

3. Apart from the capacity analysis, a final decision to close a particular street and divert the traffic should involve the following steps.

(i) Approval from the ward office or community to use the local streets as detours; (ii) Consultation with businesses, community members, Traffic Police, Department of Roads, etc, regarding the mitigation measures necessary at the detours where the road is diverted during the constructions; (iii) Determination of the maximum number of days allowed for road-closure and incorporation of such provisions into the contract documents; (iv) Determine if additional traffic control or temporary improvements are needed along the detour route; (v) Consider how access will be provided to the worksite; (vi) Contact emergency service, school officials, and transit authorities to determine if there are impacts to their operations; and (vii) Develop a notification program to the public so that the closure is not a surprise. As part of this program, the public should be advised of alternate routes that commuter can take or will have to take as result of the traffic diversion.

4. If full road-closure of certain streets within the area is not feasible due to inadequate capacity of the street or public opposition, the full closure can be restricted to weekends with the construction commencing from Friday night up to Sunday morning prior to the morning peak period.

2. Public awareness and notifications

5. As per discussions in the previous sections, there will be travel delays during the Ap

constructions as is the case for most construction projects, albeit, in a reduced scale if the pendix utilities and traffic management are properly coordinated. There are additional grounds for travel delays in the area as most of the streets lack sufficient capacity to accommodate additional

3 traffic from diverted traffic as result of street closures to accommodate the works.

36 Appendix 4

Figure A4.1: Policy Steps for the TMP

6. The awareness campaign and the prior notification for the public will be a continuous activity which the Project will pursue to compensate for the above delays and minimize public claims as result of these problems. These activities will take place sufficiently in advance of the time when the road-blocks or traffic diversions take place at the particular streets. The reason for this is to allow sufficient time for the public and residents to digest the changes to their travel

Appendix 4 37 plans. The Project will notify the public about the road-blocks and traffic diversion through the print, TV and radio media. In addition, the Project in collaboration with the Utility Management Coordinator, will also seek the assistance of the ward office, local clubs, etc. to post the public notice regarding street-closure and traffic diversions in the future.

7. The Utility Management Coordinator will also conduct awareness campaign to educate the public about the following issues:

(i) Traffic control devices in place at the work zones (signs, traffic cones, barriers, etc); (ii) Defensive driving behaviour along the work-zones; and (iii) To inform about reduced speeds enforced at the work-zones and traffic diversions.

8. It may be necessary to employ a road-safety education specialist to design an appropriate program for road-safety and also conduct the awareness programs.

9. The campaign will cater to all types of target groups i.e. children, adults, drivers. Therefore, these campaigns will be conducted in schools, civic centers and community centers. In addition, the Project will publish a brochure for public information. These brochures will be widely circulated around the area and also be available at the KUKL Project Directorate, office of both the Contractor and Consultant as well as Contractor's site office. The text of the brochure should be concise to be effective with lot of graphics. It will detail the following aspect.

(i) Why the brochure was prepared along with a brief description of the Project; (ii) Advice the public to expect the unexpected; (iii) Educate about the various traffic control devices and safety measures adopted at the work zones; (iv) Educate about the safe road-user behaviour to emulate at the work zones; (v) How to stay informed or where to inquire about road-safety issues at the work zones (web-site; name, telephone, mobile number of the contact person; SMS service or traffic information on FM Radio e.g. "Ujyalo FM Station"); and (vi) Office hours.

C. Install traffic control devices at the work zones and traffic diversion routes

10. The purpose of installing traffic control devices at the work zones is to delineate these areas to warn, inform and direct the road-users about a hazard ahead and protect the former including the workers. As proper delineation is a key to achieve the above objective, it is important to install good traffic signs at the work zones.

11. Procedures for installing traffic control devices at any work zone vary depending on road configuration, location of the work, construction activity, duration, traffic speed and volume and pedestrian traffic. At the area, the work area will take place both at the minor streets and the major streets such as Pashupati Sadak and the Dhumbarahi – Chabahil section of Ring Road.

As such, the traffic volumes and road geometry varies with the latter qualifying for more Ap

elaborate settings. However, regardless where the constructions take place, all the work zones pendix should be cordoned off and traffic should shifted away at least with traffic cones, barricades and temporary signs (temporary STOP and GO). The works will closely follow the guidelines

3 outlined in the DOR Traffic Sign Manual 1997 (which includes DOR 1996 document ―Safety at Roadwork‖) and other literature available in this respect.

38 Appendix 4

12. Figure 2 illustrates a typical set-up for installing traffic control devices at the work-zone of the area.

Figure A4.2 Basic Layout for Delineation of a Work Zone (small area)

Source: DOR Traffic Sign Manual; Volume I; August 1997; Kathmandu, Nepal.

13. The work zone should take into consideration the space required for buffer zone between the workers and the traffic (lateral and longitudinal) and the transition space required for delineation, as applicable. For the DNI works, a 30 cm clearance between the traffic and the temporary STOP and GO signs should be provided. In addition, at least 60 cm space is necessary to install the temporary traffic signs and cones. Figure A4.2 clarifies that the "ROAD NARROWS" warning-sign is only necessary at the DNI works zones along Pashupati Sadak and the Ring Road section, where, high traffic speeds is likely during the off-peak and night- time. All the temporary traffic signs should be reflectorizEd, especially for the works to be conducted during the night-time as per the DOR Traffic Sign Manual 1997.

14. All the traffic diversions should be properly delineated through proper "DIVERSION AHEAD" and "ROADWORK AHEAD" signs as indicated in Figure A4.3. In addition, the "B46" temporary warning sign for sharp bends used at temporary diversion should be in place after the start of the taper of the traffic cones. Flashing beacons should be installed at the entry to the work zone and traffic diversion for night constructions or if backfilling of the DNI trench does not take place after the completion of a day shift.

Appendix 4 39

Figure A4.3 Basic Layout for Delineation of a Work Zone (small area)

Source: DOR Traffic Sign Manual; Volume I; August 1997; Kathmandu, Nepal.

15. Traffic police should regulate traffic away from the work zone and enforce the traffic diversion effected as result of full street-closure at certain areas during the works. For the DNI and BDS works, one personnel is necessary at the entry to the diversion in both directions. These personnel should be equipped with reflective jackets at all times and have traffic control batons (preferably the LED type) for regulating the traffic during night-time.

16. In addition to the delineation devices, all the construction workers should wear florescent safety-vests and helmet in order to be visible to the motorists at all time. There should be provision for lighting beacons and illumination for night constructions. In light of the ongoing load-shedding problem in Nepal, it is practical to use of solar powered LED lights, which are energy efficient, wherever feasible.

pendix pendix

40 Appendix 5

APPENDIX 5: SAMPLE FORM FOR RAPID INCOME SURVEY FOR BUSINESSES

Date of survey Serial No: DMA No Name of road Name of Affected Person Father’s name Mother’s name Address/Location Type of business/Hawker Status Owner Tenant Mobile: Permanent: Since when does the person operate in that location Frequency of operating in a week Daily/ 2-3 days per week/one day per week I half day/full day Person employed if any No: Per month rent if any Tk. Average profit per day Tk. Will the person be affected Yes/No Type of vulnerability/distress Types of road Minor ( <10 m) Major (>10m) Work starting date in road Duration that road shall remain Days closed

Document prepared by: Supervised by: Document checked by:

Appendix 6 41

APPENDIX 6: ENVIRONMENTAL AND SOCIAL AUDIT OF EXISTING WASTEWATER FACILITIES

I. Executive Summary

1. Water supply and wastewater system improvements are high priorities of the Government of Nepal. A safeguards assessment of existing facilities included field visits to each proposed site targeted for upgrading and rehabilitation in order to determine the existing environmental and social conditions. Three existing wastewater treatment plants (Sallaghari, Kodku and Dhobighat) will be rehabilitated under the Project. The works will consist of upgrading treatment processes to cater to increased populations, repair works of pump houses, and installation of new pipes from pump houses to wastewater treatment plants, sewer unclogging, and backlog sewer connections to an estimated 5,000 households.

2. Social Safeguards: The sites are all government owned land, free of informal settlers and land uses. No social safeguard compliance issues were identified. However, as the surrounding area is more built up with increased density it is determined that a more advanced wastewater treatment system is needed to ensure no environmental nuisances to residential and commercial uses.

3. Environmental Safeguards: The rapid unplanned urbanization of the Kathmandu Valley has brought negative impact to its overall development. The lack of operational wastewater system facilities converted the Bagmati River into a highly polluted water body. A household survey in 2003 revealed that 78% of surveyed households were discharging wastewater into municipal drain directly; 15% discharged their wastewater into a septic tank; 9% discharged septic tank effluent into municipal drain. Over the years, population growth in Kathmandu has resulted in increased residential and commercial land uses in the surrounding areas of the treatment plants. It is crucial to begin improvements on the wastewater system to minimize environmental impacts and related public health risks from the expected additional wastewater in the valley.

II. Facilities Description

4. The existing treatment plants (Sallaghari, Kodku and Dhobighat) are oxidation ponds which are not fully functional and require upgrading to ensure adequate capacity and treatment processes for the increased wastewater flows of Kathmandu. In the wastewater system no pumping stations are operational, wastewater treatment is virtually non-existent and most interceptor sewers are choked. The project therefore finds the existing oxidation pond treatment technology inappropriate in an urban setting and proposes a mechanized treatment system to ensure more environmentally sensitive facilities which can coexist with surrounding land uses. They type of technology will be determined at detailed design.

III. Summary of Environmental laws, regulations, and standards

5. The water supply and wastewater services of Kathmandu Valley have remained poor pendix despite various attempts through many projects during last three decades. It was realized that the poor state of water services in Kathmandu valley was a compounded result of deficiencies in

3 water resources, weaknesses in system capacity and inadequacies in management efficiency. To overcome these deficiencies, the Government of Nepal formulated a policy strategy in 2001

42 Appendix 6 for the water sector in Kathmandu Valley. The new strategy focused on; a) sector planning and infrastructure improvements; b) service delivery standards; c) institutional framework reorganization; d) legal framework; e) cost recovery and tariff structure; f) access to service for the financially disadvantaged; and g) transparency and consultation with consumers. 6. Relevant laws were amended and new laws were enacted to allow the implementation of these institutional reforms. Water Supply Management Board Act (2006) was enacted which enabled establishment of Kathmandu Valley Water Supply Management Board to take over responsibility of water supply and wastewater services in Kathmandu Valley and to operate and manage the services through a private sector service provider. The Nepal Water Supply Corporation Act (1990) was amended to allow its assets to be transferred to Kathmandu Valley Water Supply Management Board. Water Supply Tariff Fixation Commission Act (2006) enabled the government to establish independent Water Supply Tariff Fixation Commission for economic regulation of water supply and wastewater services and resolution of consumer complaints. These new and amended laws were designed to establish the legal basis for developing an institutional structure with the goal to; a) establishing a mechanism for representation of municipalities and the public at a policy level; b) protecting the operating company from political interference in management and operational decisions; c) implementing an efficient set of tariffs based on the principle of cost recovery; d) running the operating company in a professional and commercial manner and e) introducing PSP modality to manage service delivery of operating company. KUKL took over operation and management of water supply and wastewater services from Nepal Water Supply Corporation (NWSC) from 13 February 2008.

7. KUKL License Service Performance Standards. By the beginning of the sixth year after the Start Date, all existing Wastewater Treatment Plants to be functional and wastewater to be diverted to Wastewater Treatment Plants to run each plant at least 90% of its hydraulic capacity. By the beginning of the fifth year after the commissioning of Melamchi Project, wastewater services in the form of sewer or on site sanitation should be made accessible to 90% of the population in the service area

8. Water Supply Management Board Act (2006). This Act places emphasis on the involvement of local bodies and institutions in the water supply and wastewater sector development in the urban areas. It allows for the establishment of autonomous and independent water supply management boards for a municipality or a group of municipalities at local level for providing water supply and wastewater services. It also allows for involvement of the private sector in the management and operation and maintenance of the systems. In case of Kathmandu Valley, the act has made it mandatory for Kathmandu Valley Water Supply Management Board (KVWSMB) to issue license to a service provider for operation and management of its water supply and wastewater system.

9. Water Supply Tariff Fixation Commission Act (2006) provided the authority to the Water Supply Tariff Fixation Commission (WSTFC) for economic regulation of water supply and wastewater services and in resolution of consumer complaints. This autonomous corporate body is empowered to fix the tariff for water supply and wastewater services independently at a reasonable price based on level of service and the cost involved in providing the service. WSTFC shall ultimately be responsible for regulation of water supply and wastewater services throughout the country though it has initially started its activities from Kathmandu Valley.

Appendix 6 43

IV. Audit and Site Investigation Procedure

10. A safeguards assessment of existing facilities included field visits to each site in order to determine the existing environmental and social conditions. Three existing wastewater treatment plants (Sallaghari, Kodku and Dhobighat) will be rehabilitated under the Project. The PPTA also reviewed existing conditions at the treatment plants and data and information is also based on the findings of the PPTA.

V. Findings and Areas of Concern;

11. The Conceptual Wastewater Master Plan, February 2010, identified the key problems and causes of the wastewater system. They are complicated and interrelated. The reasons for the poor condition and operation of the wastewater services are summarized below.

Limited water for self cleansing: A key contributing reason for blocked sewers is inadequate flushing water to maintain self cleansing in the sewers. This is partly related to insufficient quantities of water available to customers. – i.e. water scarcity. This issue is interrelated to the poor solid waste systems which increases debris in the sewers. It is also related to hydraulic design assumptions inherent in the original sewer designs.

Planning inadequacies and lack of commitment to meet plans: A number of Master Plans have been prepared but none of them have been implemented because of low prioritization. Additionally, there are no plans of the actual constructed sewerage networks.

Combined System: As was common practice, sewerage was initially designed as a combined system to cater for both domestic wastewater and storm water. While there has been considerably more separate sewerage systems installed, connections of liquid wastes occurs in an ad-hoc manner to any drainage conduit – regardless of whether it is for foul sewage or surface water. Combined systems result in large variations in dry and wet weather flows and sewers need to be appropriately designed and managed for this large variation in flow. This is exacerbated by the poor solid waste collection in the valley and numerous un-made roads from which sand and gravel is washed into the sewers.

Budget Allocation: 50% of KUKL water bills are intended as a wastewater service charge but only 20% of this intended amount is spent on sewerage network operation. It is widely recognized that wastewater collection and treatment, typically costs up to 50% more than a water supply system. With such a low budget allocation for wastewater, management of the system continues to deteriorate.

Treatment: About 95% of the wastewater collected from the urban areas in sewers is discharged un-treated into the valley watercourses. There is no treatment of septage (septic tank sludge). Although five WWTPs have been established in the valley none of them are operating adequately. The capacity of the existing treatment plants, if the plants were rehabilitated to their originally intended process would be of the order of 170,000 people. This compares with the connected population of about 1.8 million. Thus if the existing treatment plants were rehabilitated, only 9% of the sewage collected could be treated. This percentage will decrease as Ap the connected population increases. pendix

VI. Proposed improvements 3

44 Appendix 6

12. A long-term program of capital works projects to develop wastewater infrastructure assets is planned. The objectives of the program are to promote appropriate wastewater services, including septic tanks and other forms of on-site sanitation, as appropriate in the circumstances, for all customers including the provision of sewerage services where it is economic to do so. Under the proposed project, three existing wastewater treatment plants (Sallaghari, Kodku and Dhobighat) will be rehabilitated. Works will consist of upgrading treatment processes to cater to increased populations, repair works of pump houses, and installation of new pipes from pump houses to wastewater treatment plants, sewer unclogging, and backlog sewer connections to an estimated 5,000 households.

APPENDIX 7: SUMMARY PROCEDURES FOR RESETTLEMENT PLANNING Stage Activity Resources Responsibility The scope of resettlement impact should be limited to small- Detailed designs Contractor (checked by design and scale temporary reductions in business income if customer prepared by supervision consultant [DSC])social access is impeded. Towards this, identify the following: contractors specialist) (i) roads that will experience full closure during construction, (ii) estimated duration of full closure and extent of potential impacts and losses. (iii) Conduct income survey on roads to be fully closed to Income Survey DSC social specialist (with help from identify affected businesses and extent of impacts and questionnaire (see hired enumerators) compensation amounts. sample in Resettlement Plan) Detailed (iv) Based on income survey, prepare a list of affected Income Survey DSC social specialist Design persons and calculate their compensation. This is the basis for questionnaire/tax the Resettlement Plan budget. records (v) Validate and/or update business survey results for income. (vi) Screen for vulnerable households (vii) Prepare Resettlement Plans (Resettlement Plans) for Use the draft DSC social specialist each DNI (one for each contract package)23 based on DMS; Resettlement Plan as a template24 (viii) Submit Resettlement Plan to ADB and PID for review, DSC social specialist confirmation, and disclosure on ADB and PID website. (ix) Conduct public consultation of Resettlement Plans and DSC social specialist entitlements. Provide advanced notice (at least 1-2 weeks) to affected Contractor persons. Pre- Pay compensation to affected persons based on Resettlement Project Implementation Directorate (PID) construction Plan before loss occurs (i.e., before construction begins). (supported by DSC social specialist) Ensure receipt of payments PID (supported by DSC social specialist) PID to record the payments in their own accounts register PID Ensure all mitigation measures from IEE (i.e., providing planks See IEE DSC/PID Construction and boards across trenches, etc) are incorporated into construction contract documents Implement all mitigation measures during construction including Construction Section II.A required safety and access measures (i.e., planks and boards Contractor (Table 2, page

across trenches). 12) Appendix

Monitor construction activities and ensure contractors are See IEE DMC/Project implementing all safety, mitigation measures, and maintaining Management Unit access to businesses. (PMU)

23 A Resettlement Plan will be prepared for each of the three DNI contract packages. 24 The key sections of the sample Resettlement Plan to update are Description of the Project, Scope of Land Acquisition, and Extent of Resettlement Impacts; 45 Detailed Resettlement Budget; and Implementation Schedule.