Environmental Compliance Monitoring Report

Semi-Annual Report No. 6

Loan/Grant Number: L2851 NEP/G0284 NEP July - December, 2017

Nepal: Integrated Urban Development Project

Prepared by the Government of Nepal for the Asian Development Bank.

This environmental Monitoring Report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. Your attention is directed to the “terms of use” section of this website.

In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

ENVIRONMENTAL SAFEGUARD MONITORING REPORT

Semi-Annual Report (July-December 2017)

Loan/Grant Number(s): L2851-NEP; G0284-NEP

Integrated Urban Development Project (IUDP)

Prepared by Department of Urban Development and Building Construction IUDP, Project Coordination Office, for Ministry of Urban Development and the Asian Development Bank

July-December, 2017

CURRENCY EQUIVALENTS

(As of 31 December 2017)

Nepalese Currency unit - (NPR) NPR 1.00 = $0.00981 $ 1.00 = 101.90 NPR

This environmental safeguard monitoring report is a document of the borrower and made publicly available in accordance with ADB’s Public Communications Policy 2011 and the Safeguard Policy Statement 2009. The views expressed herein do not necessarily represent those of ADB’s Board of Directors, Management, or staff.

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List of Acronyms and Abbreviations

ADB Asian Development Bank BoQ Bill of Quantity DFO District Forest Office DSC Design and Supervision Consultant DUDBC Department of Urban Development and Building Construction DWSMB Dharan Water Supply Management Board EA Executing Agency EARF Environmental Assessment and Review Framework EIA Environmental Impact Assessment EMP Environmental Management Plan GESI Gender Equality and Social Inclusion GoN Government of Nepal GRC Grievance Redress Committee GRM Grievance Redress Mechanism IEE Initial Environmental Examination IUDP Integrated Urban Development Project Km Kilometer MoSTE Ministry of Science, Technology and Environment MoUD Ministry of Urban Development MoPE Ministry of Population and Environment MoWSS Ministry of Water Supply and Sanitation NGO Non-Government Organization OHS Occupational Health and Safety PCO Project Coordination Office PAM Project Administration Manual PMSC Project Management Support Consultant PIU Project Implementation Unit PPTA Project Preparation Technical Assistance RM Rural Municipality RP Resettlement Plan SLF Sanitary Landfill SMC Sub-Metropolitan City SMR Safeguard Monitoring Report SWM Solid Waste Management VDC Village Development Committee

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TABLE OF CONTENTS

1. INTRODUCTION ...... 1 1.1 Brief Project Description ...... 1 1.2 Project Progress Status ...... 2 2. COMPLIANCE TO NATIONAL REGULATIONS ...... 5 2.1 Environmental Protection Rules 1997 ...... 5 3. COMPLIANCE TO ENVIRONMENTAL COVENANTS FROM THE ADB LOAN AGREEMENT ...... 5 4. COMPLIANCE TO ENVIRONMENTAL MANAGEMENT PLAN ...... 7 4.1 Environmental Safeguard Implementation Arrangement ...... 7 4.2 Institutional Arrangement for Safeguards Implementation ...... 8 5. SAFEGUARD MONITORING RESULTS AND UNANTICIPATED IMPACTS ...... 9 5.1 Compliance Monitoring ...... 9 6. IMPLEMENTATION OF GRM AND COMPLAINTS RECEIVED FROM STAKEHOLDERS ...... 11 6.1 Establishment of GRM ...... 11 6.2 Public Consultation ...... 12 7. OTHERS ACTIVITIES ...... 12 8. CONCLUSION ...... 12

List of Figure Figure1: Project Municipalities (Nepalgunj, Siddharthanagar, Janakpur and Dharan)

List of Table Table 1: Physical Progress Status of Subprojects Table 2: National Statutory Environmental Requirements Table 3: Compliance Status with Environmental Loan Covenants Table 4: Provision Environmental Safeguard Expert of all DSC and Remaining Man- month Table 5: Status of Environmental Assessment

Appendices Appendix I: Compliance Monitoring Checklist AppendixII: Meeting minutes regarding to construction of reservoir at Panchakanya,Bijayapur Appendix III: Review Mission Recommendations for Future Actions Appendix IV: Photographs

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INTRODUCTION

Integrated Urban Development Project (IUDP) is funded by Asian Development Bank (ADB) and Government of Nepal in four Municipalities/SMC in order to develop the urban environmental infrastructures. These four municipalities/SMC are: Nepalgunj, Siddharthanagar, Janakpur and Dharan. The project cost is $ 83.87 millions.

The project provides the population in the municipalities of Nepalgunj, Siddharthanagar, Janakpur and Dharan with better access to municipal infrastructure and services in a socially inclusive manner. In accordance with the priorities of each municipality/SMC, integrated urban environmental improvements, including drainage systems, solid waste management (SWM) facilities, and urban roads, will be implemented in Nepalgunj, Siddharthanagar and Janakpur Municipalities/SMC. A water supply development subproject will be implemented in Dharan SMC. The project will also undertake community development programs (CDP), focusing primarily on poverty pockets in the Municipalities/SMC and communities that may not benefit directly from major infrastructure improvement subprojects. Gender equality and social inclusion (GESI) will be mainstreamed in all subprojects in the Municipalities/SMC, and the capacity to address GESI in the Ministry of Urban Development (MoUD) strengthened by establishing an appropriate institutional structure and mechanisms for GESI mainstreaming.

1.1 Brief Project Description

Nepalgunj Sub Metropolitan City • 60.051 km new storm water drainage, 12.62 natural water course, 13.206 primary drain, 11.032 secondary drain, 7.038 tertiary drain, and 16.155 road side drain • 8.03 km urban road construction and Improvement • Integrated solid waste management with sanitary landfill site • Community development program and mainstreaming gender equality and social inclusion

Siddharthanagar Municipality • 42.742 km new storm water drainage, 11.295 primary drain, 8.03 secondary drain, 2.159 tertiary drain, and 20.628 road side drain • 10.36 km urban road construction and improvement • Integrated solid waste management with sanitary landfill site • Community development program and mainstreaming gender equality and social inclusion

Janakpur Sub Metropolitan City • 31.08 km new storm water drainage • 9.29 km road construction and improvement • Integrated solid waste management with sanitary landfill site • Community development program and mainstreaming gender equality and social inclusion

Dharan Sub Metropolitan City • 398 km water supply construction, improvement and expansion • 7 new tube wells construction • Dharan water supply management board (DWSMB) formation for operation and maintenance

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• Community development program and mainstreaming gender equality and social inclusion

Figure1: Project Municipalities (Nepalgunj, Siddharthanagar, Janakpur and Dharan)

Nepal

Nepalgunj

Siddharthanagar

Dharan

Janakpur

.

1.2 Project Progress Status

During the reporting period, the overall physical and financial progress of IUDP is 82.85 % and 63.69 % respectively. The detail is given in Table 1. Table 1: Physical Progress Status of Subprojects

No Sub-Project Progress Status Name

1 Nepalgunj SMC Storm water Contract was awarded to CTCE - Kalika Construction JV on December drainage and Road 17, 2014. Construction of about 59.906 km of 60.634 km storm water drain and 8.03 km (8.03) urban road (Asphalt) is completed. 100% of drain and road construction work is completed. One year DNP is completed; started from September 2016 and concluded on August 31, 2017. Overall, about 100% of construction work is completed. IEE report approved by MoUD on August 9, 2015 and uploaded in project's website.

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No Sub-Project Progress Status Solid waste Land acquisition: 12.5 Bigha (8.47 ha) Private Land/ Ward -7, Hirminiya management with VDC procured on May 23, 2013. sanitary landfill site Contract agreement signed with RAMKY-NANC JV on June13, 2016 development and contractor mobilized from July 4, 2016 Sub-grade preparation of the access road completed, work on sub-base is ongoing (60 %) Earthwork excavation for phase I-IV completed up to geo membrane level (40%). About 0.58 hectare of land located within cells 2 and 3 has not been found procured and further works in landfill cells are halted at the moment. Negotiation continued with two land owners for procurement of missed land. Work will be resumed immediately after the procurement of these lands. Procurement process of geo-membrane ongoing and site for acquiring clay liner being identified. Construction of office building (95 %), generator house(95%), garage (100%), toilet block (90%) and guard house (80%) completed Sanitary and electrical works ongoing. Fencing work completed.

Revised EIA report submitted to MoUD for approval process. Presentation of EIA was done on November 3, 2017 at MoUD and document is being finalized after incorporating comments made by the experts of the presentation committee.

Physical Progress of ISWM work is 33% 2 Siddharthanagar Municipality Storm water Contract for storm water drainage and urban road was awarded to M/S drainage and Road China Guangzhou-Sharma & Co. Pvt. Ltd JV, Sitapaila, Kathmandu, Nepal on December 15, 2014 and Contractor was mobilized from February 17, 2015. Time extension(2) of contract no. IUDP/DR/SDN/ICB-1 till 1 July 2017 concurred by ADB. 43.47 km of drainage works and 10.71 km of asphalt concrete road works completed. 100 % of drain and road construction works is completed One year DNP started from June 3, 2017.Working group comprising of DPD/PCO, Engineer/PCO, and Drainage and road expert of PMSC and representative of PIU has been established on December 18, 2017 to review as-built drainage and road improvement works and list the corrective actions for contractor to rectify during DNP. IEE report approved by MoUD on August 9, 2015, and uploaded in project website. Solid waste Land acquisition: 6 Bigha (4.06ha) Private Land/ Ward -8, Patkhauli management with VDC. The municipality received the ownership of land on 29 June, 2012. sanitary landfill site Contract awarded to M/S UPLEEL-NANC JV on April 18, 2016. development Contractor was mobilised from May 20, 2016. However, civil work is not yet commenced due to the opposition from locals of the adjoining villages (Gauri Gao and Pharsatikar) of Patkhauli sanitary landfill site. Dialogue is continued with local people.

EIA report is submitted to MoPE through MoUD for approval. 3 Janakpur SMC

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No Sub-Project Progress Status Storm water Contract for storm water drainage and urban road was awarded to drainage and Road ZIEC-Sharma JV on December 23, 2015 and the Contractor was mobilized from February 22, 2016. Laying of 15.825 km of NP2/NP3 RCC pipe (400-1200) out of 31 km completed; 2.015 km in catchment S1, 3.072 km in catchment S2, 3.277 km in catchment S3, 4.672 km in catchment S4 and 2.777 km in catchment S8. 426 nos. of manhole are constructed. 2.40 km of asphalt concrete, 4 km sub-grade work,4 km sub-base laying, base laying 2.54 km, 7.19 km brickwork for kerb stone laying, 7.190 km kerb stone laying , drain inlet 1.97 km, side drain ditch 5.567 km and road edge block 1.5 km completed under urban road work( 9.29 km). 156,528 nos. of interlocking blocks and 25,034 nos. of kerb stone casted. About 56.19 % of total construction works is completed. Revised IEE report has been submitted to MoUD for approval. Presentation on IEE is conducted on November 3, 2017 at MoUD. Revised IEE report will be submitted to MoUD for approval. Solid waste Alternative site has been identified at Bhoyal, JSMC-18 owned by Guthi management with Trust, and being finalized. sanitary landfill site development 4 Dharan SMC Water supply Contract agreement for water supply work was signed with Tianjian and Tundi JV on March 25, 2015, and the Contractor was mobilized from July 15, 2015. Contract completion date is revised as April 1, 2018. Physical progress of water supply construction work is 87.5 %( 83.79% including VO works). A total of 398.813 km; 32.06 km DI (200-400 mm Φ) transmission and distribution, 360.588 of HDPE (63-225 mm Φ) distribution and 6.165 km of GI pipe laying work is completed. Pindeswor RVT: Finishing work ongoing. Phushre RVT (500 cum) and Operator House: Finishing work ongoing. OHT (200 cum) for backwash of RSF: Painting work completed. Bridge construction: Finishing works are ongoing. Gabion work at Army Camp, Phusre: Construction work ongoing. Generator and operator house at Charkose Jhadi: Finishing work ongoing. Operator house cum control panel house Charkose Jhadi: Plaster work ongoing. Control panel house at Charkose Jhadi:Plaster work ongoing. Boundary wall: Brick work and plaster work ongoing in Phusre and Bishnu Chowk and plaster work ongoing in Charkose Jhadi. House connection works: Ongoing in Sumnima and Pindeswor distribution systems and operation and maintenance ongoing in Railway system. Reinstatement of surface pavement work: Base final, prime coating and asphalt works ongoing. Rapid mix tank at Sardu: Brickwork above sill level completed. Rapid sand filter: Rebar and concreting work ongoing. Sedimentation Tank Sardu: Finishing work completed. Flocculation tank: Finishing work completed. Construction work at Panchakanya RVT is not yet commenced due to opposition by four Kirat Groups who claim that the land for RVT construction site as their religious site and the land is culturally connected with their family rituals. After several rounds of dialogue an

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No Sub-Project Progress Status agreement has been made on January 19, 2018.

IEE of rehabilitation, extension and development of Dharan water supply sub-project is approved by MoUD on October 6, 2016 Resettlement Plan submitted to ADB.

Personnel administration regulation 2073 of Dharan water supply management board revised and submitted to MoUD for approval.

Document on transfer of assets and liability of NWSC Branch office, Dharan to DWSMB has been submitted to MoWSS for approval.

2. COMPLIANCE TO NATIONAL REGULATIONS 2.1 Environmental Protection Rules 1997

As per Environmental Protection Act and Rules 1997 of Nepal, Environmental Impact Assessment (EIA) is required for solid waste management and Initial Environmental Examination (IEE) is required for water supply, storm water drainage and road subprojects.

According the ADB Safeguard Policy Statement, the project is classified as category B with respect to environment.

The status is given in the Table 2.

Table 2: National Statutory Environmental Requirements No. Sub-Project Name Statutory Environmental Requirements 1 Nepalgunj SMC Solid Waste Management EIA Storm water drainage and Road IEE 2 Siddharthanagar Municipality Solid Waste Management EIA Storm water drainage and Road IEE 3 Janakupur SMC Solid Waste Management EIA Storm water drainage and Road IEE 4 Dharan SMC Water Supply IEE

3. COMPLIANCE TO ENVIRONMENTAL COVENANTS FROM THE ADB LOAN AGREEMENT

There are loan covenants specified for this project. Environmental safeguard related project activities are in compliance with covenants as regular follow up actions are being taken. The following covenants to the financing agreement with ADB are to be complied with during implementation of the project.

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Table 3: Compliance Status with Environmental Loan Covenants List schedule Covenant Status of Compliance Action and paragraph Required number of Loan Agreement Schedule 5, The Beneficiary shall ensure or cause MOUD Complied with /Being Para 3 to ensure that the preparation, design, complied with. These construction, implementation, operation and are the part of decommissioning of the Project, each subproject appraisal Subproject and all Project facilities comply report. with (a) all applicable laws and regulations of the Beneficiary relating to environment, health and safety; (b) the Environmental Safeguards; (c) the EARF, for Subproject under Part 2 of the Project; and (d) all measures and requirements set forth in the respective IEE, the EMP, and any corrective or preventative actions set forth in a Safeguards Monitoring Report. Schedule 5, The Beneficiary shall make available or Complied with. Para 7 cause MOUD to make available necessary budgetary and human resources to fully implement the EMP, the RP and any indigenous peoples' plan. Schedule 5, The Beneficiary shall ensure or cause MOUD Para 8a to 8e to ensure that all bidding documents and contracts for Works contain provisions that require contractors to. (a) comply with the measures relevant to the Complied/being contractor set forth in the IEE, the EMP, the complied with. RP and any indigenous peoples' plan (to the Provision was made in extent they concern impacts on affected bidding documents people during construction), and any and contracts for corrective or preventative actions set forth in works. a Safeguards Monitoring Report; (b) make available a budget for all such Complied/being environmental and social measures; complied with. Provision was made in bidding documents and contracts for works. (c) provide the Beneficiary with a written Complied/being notice of any unanticipated environmental, complied with. resettlement or indigenous peoples risks or impacts that arise during construction, implementation or operation of the Project that were not considered in the IEE, the EMP, the RP or any indigenous peoples' plan; Schedule 5, The Beneficiary shall do the following or Para 9a to 9 c cause MOUD to do the following: (a) submit semi-annual Safeguards Complied with /being Monitoring Reports to ADB and disclose complied with. relevant information from such reports to affected persons promptly upon submission; (b) if any unanticipated environmental and/or Complied with/Being social risks and impacts arise during complied with. construction, implementation or operation of the Project that were not considered in the

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IEE, the EMP, the RP or any indigenous peoples' plan, promptly inform ADB of the occurrences of such risks or impacts, with detailed description of the event and proposed corrective action plan; and (c) report any actual or potential breach Followed. of compliance with the measures and requirements set forth in the EMP, the RP or any indigenous peoples' plan promptly after becoming aware of the breach.

4. COMPLIANCE TO ENVIRONMENTAL MANAGEMENT PLAN

4.1 Environmental Safeguard Implementation Arrangement

The following are institutional roles and responsibilities to ensure IEE, EIA and EMPs are implemented during design and implementation stages.

Project Coordination Office (PCO): The PCO, with assistance from the project management support consultant is to: • confirm IEEs/EMPs are updated based on detailed designs • confirm EMPs are included in the bidding documents and civil works contracts; • ensure contractor EMPs are prepared by contractors prior to construction and endorsed by PIUs; • establish a system to monitor environmental safeguards of the project including monitoring the indicators set out in the monitoring plan of the EMP; • facilitate and confirm overall compliance with all Government rules and obtain all required environmental clearances and any other environmental permits prior to contract award; • supervise and provide guidance to the PIUs to properly carry out environmental monitoring and reporting; • review, monitor and evaluate the effectiveness with which the EMPs are implemented, and recommend necessary corrective actions to be taken as necessary; • consolidate quarterly environmental monitoring reports from PIUs and submit semi- annual environmental monitoring report to ADB; • ensure timely disclosure of final IEE/EMPs in locations and form accessible to the public, • Address, record and report on any grievances brought about through the Grievance Redress Mechanism in a timely manner as per the IEE/EIAs.

Project Implementation Units (PIUs): The four PIUs in Nepalgunj, Siddharthanagar, Janakpur and Dharan, with the assistance of design supervision consultants, are to:

• ensure the draft IEE/EMP prepared during the feasibility study is updated during detailed design stage, where necessary; • ensure EMPs are included in bidding documents and civil works contracts; • ensure overall compliance with all Government rules and obtain all required environmental clearances as well as any other environmental permits prior to contract award;

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• oversee implementation of EMPs including environmental monitoring; • take corrective actions when necessary to ensure no major environmental impacts; • submit quarterly environmental monitoring reports to the PCO, and; • Address any grievances brought about through the Grievance Redress Mechanism in a timely manner as per the IEE/EIAs.

Regarding institutional arrangement, Grievance Redress Committees (GRCs) have been formed in all four Municipality/SMCs to address overall safeguard related issues (environment, social and resettlement). 4.2 Institutional Arrangement for Safeguards Implementation

Municipality and Sub-metropolitan city are implementing agency of the Project. Each municipality/SMC has established safeguard desk to address environmental and social issues. Safeguard experts for Nepalgunj and Siddharthanagar are not available due to the conclusion of services of their respective DSCs on time June 30,2017.Alternative arrangements for it needs to be made for ongoing SWM works. Regular compliance monitoring has not been satisfactory. Currently, the following are the personnel and remaining man- month:

Table 4: Provision Environmental Safeguard Expert of all DSC and Remaining Man-month. No. Sub-project Name Responsible personnel Contract Consumed Remark for Environmental Man Input upto safeguard month December, 2017 1 Nepalgunj SMC S.K Pandit 22.0 17.0 DSCs input concluded on June 30, 2017 2 Siddharthanagar R.K. Sah 22.0 27.0 DSCs input Municipality concluded on June 30, 2017 3 Janakpur SMC Mahesh Bhattarai/Deepak 22.0 11.64 Kumar Amatya 4 Dharan SMC Subodh Sharma 6.0 6.0 Source: Monthly progress report of December, 2017, IUDP.

Progress status of preparation of environmental assessment till December, 2017 for the subprojects is presented in the following table.

Table 5: Status of Environmental Assessment No Subproject Environment TOR/EIA/IEE Status GRC is Remarks . Name al screening established 1 Nepalgunj SMC Solid Waste Carried out Scoping and ToR for EIA Yes Public Manageme study approved by MoSTE hearing was nt on December 11, 2014, held on 17 EIA presentation was done Dec,2015 on 3 November 2017, EIA report submitted to MoUD for approval. Storm water Carried out IEE report approved by drainage, MoUD on August 9, 2015 and Road .and uploaded in project's website. 2 Siddharthanagar Municipality

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No Subproject Environment TOR/EIA/IEE Status GRC is Remarks . Name al screening established Solid Waste Carried out Scoping and ToR for EIA Yes Public Manageme study approved by MoSTE hearing was nt on December 26, 2014, held on Revised EIA report April 17, submitted to MoPE through 2015. MoUD for approval.

Storm water Carried out IEE report approved by drainage, MoUD on August 9, 2015 and Road .and uploaded in project's website. 3 Janakpur SMC Solid Waste Carried out New location for sanitary Yes Manageme landfill site has been nt identified and being finalized Storm water Carried out IEE presentation was done drainage on 3 November 2017, IEE and Road report submitted to MoUD for approval. 4 Dharan SMC Water Carried out IEE report approved on Yes Supply October 6, 2016

5. SAFEGUARD MONITORING RESULTS AND UNANTICIPATED IMPACTS

5.1 Compliance Monitoring

During the present reporting period, the following activities have progressed:

Dharan Sub Metropolitan City:

Roadside tree plantation program: Total of 175 trees are felled during project construction at Panchakanya and Charkoshejhadi. It is discussed that project implementation unit (PIU) has coordinated with DFO for suitable location and species for compensatory tree plantation. The PIU is planning to carry out by them self. Slope protection: At Sardu and Khardu, Intake sites the contractor has done gabion wall and rip-rap work. Plantation work for watershed management and erosion control at Sardu and Khardu intake area: Plantation work was to carry out at intake sites for watershed management as well as erosion control.

Compensatory tree plantation program: Total of 175 trees are felled during project construction at Panchakanya and Charkoshejhadi. It is discussed that project implementation unit (PIU) has coordinated with DFO for suitable location and species for compensatory tree plantation. The PIU is planning to carriey out by them self. Safeguard meeting: Regular safeguard meeting was conducted every Sunday in week/fortnight. Total 35 meetings were conducted.

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Contractor’s/ labor camp: Local labours are used in all packages. There are temporary camps established by the contractors for outside workers, sanitation, drinking water facilities are satisfactory, for cooking the labor are using gas stove.

Construction materials are used from approved quarry of Gachhe khola. Stockpile yard is used at municipality land, stockpile sites shall be reinstated after completion of work. Occupational, Health and Safety: The workers have been provided with helmet, Jacket, boot, gloves, face mask. Traffic signboard has been put at necessary area. No accident and incident were registered. The contractor agreed to provide adequate safety measures, signboard at workmen and workplace. Public services: During pipe line construction access to the houses is disturbed however with in a day the contractor has reinstated them.

Air quality and Noise Pollution: In the construction sites the contractor has done regular sprinkling of water, no air pollution observed due to construction activities.

Safeguard meeting: Regular safeguard meeting was conducted every Sunday in week/fortnight. Total 35 meetings were conducted. Dispute on construction of reservoir at Panchakanya, Bijayapur by local people: Construction work at Panchakanya RVT is not yet commenced due to opposition by four Kirat Groups who claim that the land for RVT construction site as their religious site and the land is culturally connected with their family rituals. After several rounds of dialogue an agreement has been made with them on January 19, 2018.

Janakpur Sub Metropolitan City: Environmental Safeguard Expert and Social Safeguard Expert have been mobilized by replacement of experts after earlier experts long absence in the project. The contractor of drainage and road packagehas assigned a site engineer Mr. Abadh Kishor Shah as safeguard focal person. The contractor is submitting monthly filled up checklist. DSC environmental specialist has been carrying out monthly compliance monitoring.

Janakpur performance with regards, to environmental safeguard compliance is found improving.

The project has conducted public awareness program on solid waste management in Janakpur on November 2017. Consultation meeting were conducted with local people, ward level chairman & members and concern authorities. The newly elected Mayor has shown interest in construction of land fill site in Bhoil.

Roadside tree plantation program: Total 33 tree were felled during project construction. Site survey for available plants in local nursery has been completed. Initial discussion for plants supply has been done with government nursery at Nawalpur as well as private nursery at Janakpur. Contractor’s/ labor camp: The contractor has hired private house and land to established camps. The camp facilities found satisfactory (drinking water facilities, toilet for cooking the labor are using gas stove, accommodation).

Occupational, Health and Safety: The workers have been provided with helmets, jackets, gloves, face masks. Adequate traffic signboard has to be place at construction sites. Sensative work area like manholes on the middle of the road is barricades by using net and poles. The contractor agreed to provide adequate safety measures, signboard at workmen and workplace. During reporting period, a person died during relocation of electric pole. Air quality and noise pollution: In the construction sites the contractor has done sprinkling of water, however it needs further improvement.

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Siddharthanagar Municipality:

Drainage and road work has been completed.Construction of landfill site is obstructed by local residence of the adjoining villages (Gauri Gao and Pharsatikar) in the land fill site and civil work is not yet commenced. Dialogues among locals Municipality, Rural Municipality and respective Ward levels are continued. The project has conducted public awareness program on solid waste management in Siddharthanagar. Regular consultations/meetings continued with affected community people residing near sanitary landfill site. Social mappings have been conducted for both Gouri Gaun and Loharauli clusters (now under Om Satiya Rural Municipality) and needs of the people collected. Based on the needs, proposals are being prepared. In the meantime PIU has arranged exposure visit for 120 people of affected area to Pokhara and Waling sanitary landfill on January 9-10, 2018.

Nepalgunj Sub Metropolitan City:

Drainage and road work had been completed. However, there was complaint of land owner to reinstate boundary wall and latrine damaged during construction of Dondra Khola storm water drainage at ward no. 15, Koreanpur, Nepalgunj SMC; the Nepalgunj SMC has made contract with the concerned land owner to reinstate the damaged boundary wall and It was constructed with improved toilet with septic tank. Sanitary Landfill Site: Construction of office building (85%), generator house(75%), garage (65%) and guard house (80%) completed. Fencing work; 90% of angle post and 60% barbed wire completed.

Contractor’s/ labor camp: There is temporary camp established by the contractors for outside workers tube well is used for drinking water facilities, for cooking the labor are using gas stove.

Occupational, Health and Safety: The workers have been provided inadequate personal protective equipment like helmet, Jacket, boot, gloves, face mask. The contractor agreed to provide adequate safety measures, signboard at workmen and workplace. The Grievance Redress Mechanism is established in the SMC. The grievances are recorded properly and grievance redresses have been made on priority basis.

Dharan SMC has followed good practice of OHS, OHS is improving by Janakpur, but Nepalgunj SMC for sanitary landfill site need to supply adequate safety tools (Helmet, Boots, Gloves, Jacket, First aid tool kits). Environmental monitoring report by checklist, attached in Appendix-I.

6 IMPLEMENTATION OF GRIEVANCE REDRESS MECHANISM AND COMPLAINTS RECEIVED FROM STAKEHOLDERS

6.1 Establishment of GRM

A grievance redress mechanism (GRM) was established to receive and facilitate the grievances of affected people. The GRM aims to be proactive and accessible to APs as an effective way to address their concerns. The Safeguard Desk has been established in Dharan, Janakpur and Siddharthanagar Municipality/SMCs. The Safeguard Desk in each municipalities/SMC will organize monthly meeting to i) assess the safeguards compliance performance as guided by EMP and RP; ii) identify area of gaps, if any; iii) agree on timely corrective action plan to mitigate the impacts; and iv) prepare periodic safeguard monitoring reports. It has been observed that the GRM is less functional as regular meetings have not been conducted so far except

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Dharan. It is suggested that the informal grievances should also be recorded and make amicable solution for the same.

6.2 Public Consultation

Public consultation was held in Dharan SMC for reservoir construction at Dharan 14, Bijayapur as different ethnic groups were not in favor of installing reservoir in the PIU proposed site. Disputes arose as the ethnic groups showed reluctance to let construct reservoir at the site as they claimed that the Bijaypur's cultural heritage would be destroyed by the construction of reservoir. However to solve the problem many consultation meeting discussion has been carried out with concern stakeholders. The meeting minutes is given in Appendix-II.

Janakpur, Four meetings were conducted with the aim to collect the information and sharing the experiences. The meetings were participated by the SMC Mayor, Ward level elected Chair person, PIU Sub- Metropolitan City, supervision consultant and contractor team and local people. Discussion was held on the status of land fill site. The Chairman of Ward No. 18 and newly elected Mayer Mr. Lal Kishor Shah suggested that present situation is not suitable for field level meeting, and requested to postpone the meeting, untill the period of parliamentary election. Field level meeting was accordingly postponed and decided to conduct the meetings and precede the activities after the election.

7. OTHERS ACTIVITIES

The safeguard team from PCO regularly visited the Project sites with different teams including the ADB Review Mission. The ADB safeguard Review Mission visited from 9 November to 29 November 2017. The Mission has pointed out findings and given the recommendations. The progress of Review Mission recommendations for future actions on Environment Safeguard is given in Appendix-III.

8. CONCLUSION

The input of Environmental Safeguard Expert of DSC has been concluded in Siddharthanagar and Nepalgunj. IEE report on drainage and road construction of Janakpur and EIA report of solid waste management of Nepalgunj and Siddharthanagar have already been submitted to concern ministry but yet to be approved.

At Siddharthanagar, construction of landfill site is obstructed by local residence of the adjoining villages (Gauri Gao and Pharsatikar) in the land fill site, so additional enhancement program has to be lunched for local residence. At Nepalgunj close monitoring during construction and operation of landfill site will be required.

Occupational health and safety measures have been found good at Dharan SMC, needs improvement for Janakpur and Nepalgunj SMC. To bring positive change in this regard, corrective action plan is required.

The Contractor’s compliance towards environmental management has been rated good in Dharan Municipality and improving in Janakpur.

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The followings recommendations have been made based on progress status:

• Further work to be taken up in the next reporting period will focus on approval of IEE report of Janakpur Storm Water Drainage and Road, approval of EIA report of Solid waste management and land fill site construction in Nepalgunj and Siddharthanagar. • At Janakpur and Dharan, Roadside plantation work plan are to be prepared and carried out during this monsoon period. • Construction sites, stockpile sites to be reinstated after completion of work in all Municipality/SMC. • Since the input of Environmental Safeguard Expert of DSC has been already concluded in Siddharthanagar and Nepalgung. Alternative arrangement is required for close monitoring of ongoing works of solid waste management and sanitary landfill site preferably through Muncipality/SMC/PIU. • Occupational health and safety measures have been found good at Dharan SMC, but Janakpur needs improvement. • Close monitoring and additional enhancement program to be lunched for local residence of the adjoining villages (Gauri Gao and Pharsatikar) in the land fill site of Siddharthanagr municipality.

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Appendix I: Compliance monitoring Checklist

Environment Monitoring Checklist Janakpur Sub-Metropolitan City Integrated Urban Development Project (IUDP) Project Implementation Unit (PIU) Integrated Solid Waste Management (SWM)

Site Location: JanakPur Sub-metropolitan City Construction Stage/ Stage during inspection: Construction Stage Inspection Date: November 18, 2017 InspectionTime: 11:30 AM Inspected By: Deepak Kumar Amatya Weather: Sunny

Inspection Item Implemented Remarks ((i.e. Specify (Quantify if location good practice possible) problems observed conformity Yes No NA and or proposed corrective/ preventative actions) 1. Air Pollution Control 1.1 Are the construction site watered √ to minimize dust generated? 1.2 Are Stoke Material of dusty √ Materials (Size more than 20 bags cement) covered or watered? 1.3 Cement debagging process √ Mortar & PCC material undertaken in sheltered area? preparing on site 1.4 Are all Vehicles Carrying dusty √ loads covered/watered over prior to leaving the site? 1.5 Are demolition work area √ watered? (E.g. trimming activities by using breakers?) 1.6 Are dusty road paved and or √ sprayed with water? 1.7 Are dust controlled during √ percussive drilling or rock breaking? 1.8 Are plant and equipment well √ maintained? (Any black smock observed, please indicate the plant/ equipment and locations) 1.9 Is dark smoke controlled from √ Diluted in air at sufficient plant? height. 1.10 Are there enclosures around the √ main dust-generating activities? 1.11 Hoarding (not<2.4) provided √ along boundaries and properly maintained (any damage/opening observed, please indicate the locations) ? 1.12 Are speed control measures √ No entry sign placed at applied? (e.g. speed limit sign) construction site. 1.13 Other (Please specify)

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2. Water pollution Control 2.1 Are there any waste water √ Waste water from urban area discharge to the storm drains? Is the discharged to the storm water waste water being treated? drain without treatment. 2.2 Are safety measures provided √ Camp location isolated from properly to avoid water pollution? resident area and far from natural drain. 2.3 Are sand bags /earth bund √ River washed sand used for adopted to prevent washing away of construction purpose. sand/silt and waste water to drain, catch pits, public road and footpath? 2.4 Are vehicle and plants cleaned √ Vehicle maintenance plant before leaving the sites? located in camp site. 2.5 Are wheel washing facilities well √ maintained to prevent flooding sediment? 2.6 Is sand and silt settled out in wheel √ washing bay and removed? 2.7 Is the public road/ area around the √ site entrance and site hoarding kept clean and free of muddy water? 2.8 Is domestic water directed to septic √ Septic tank used for collecting tanks or chemical toilets? night soil only. 3. Noise Control 3.1 Is the CNP (Construction Noise √ Permit) valid for work during restricted hours? 3.2 Are copies of the valid √ Not practiced. Construction Noise Permit posted at site entrance/exit? 3.3 Do air compressor and generator √ Located at permanent camp operate with doors closed? site. 3.4 Is idle plant/equipment turned off √ or throttled down? 3.5 Do air compressor and handheld √ Used inside camp, located far breakers have valid noise emission from sensitive area. level (NEL)? 3.6 Any noise mitigation measures √ adopted (e.g. use noise barrier/enclosure)? 3.7 Are silenced equipment utilized? 4. Waste Management 4.1 Is the site kept clean and tidy? √ (e.g. litter free good housekeeping) 4.2 Are separate chutes used for inert √ and non-inert waste? 4.3 Are separate labelled √ containers/areas provided for facilitating recycling and waste segregation? 4.4 Are construction wastes/recyclable √ All waste disposed in safe wastes and general refuse removed off location. site regularly? 4.5 Are construction waste collected √ No licensed collector at site

July-December, 2017 and disposed of properly by licensed collectors? 4.6 Are chemical waste, if any, √ No hazardous chemical waste collected and disposed of properly by generated in construction site licensed collectors? 4.7 Does chemical waste producer √ license cover all major chemical waste produces on site? 4.8 Are chemical waste properly √ stored and labelled? 4.9 Are oil drums and plant/equipment √ provided with drip trays? 4.10 Are drip trays free of oil and √ water? 4.11 Is there any oil spillage? Clean up √ the contaminated soil immediately? 4.12 Is litter, foam or other √ Cleaning in regular basis. objectionable matters in nearby water drain/sewer cleaned? 4.13 Are asbestos wastes handled by √ registered professionals? 4.14 Others (Please specify) 5. Storage of Chemicals and Dangerous Goods 5.1 Are chemical stored and labelled √ properly? 5.2 Doe storage of DG complies with √ license conditions (include type and quantities if DG store is available check the DG store license)? 5.3 Are proper measure to control oil √ spillage during maintenance or to control other chemical spillage ? (e.g. provide drip trays) 5.4 Are spill kits/sand/saw dust used √ for absorbing chemicals spillage readily accessible? 5.5 Others (Please specify) 6. Protection of Flora, Fauna and Historical Heritage 6.1 Are disturbance to terrestrial flora √ minimized (e.g. plants to be preserved)? 6.2 Are disturbance to terrestrial fauna √ No rare species found minimized (if rare species identified?) 6.3 Any historical heritage exists on √ Janki Temple not affected site? If yes, ensure appropriate from road improvement measures taken to preserve it. program. 6.4 Is tree cutting done? How many? √ 33 nos. 6.5 Is Compensatory plantation carried √ Rate analysis is in process of out? Give the status. approval. (825 nos) 6.6 Others (Please specify) 7. Resource Conservations

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7.1 Is water recycled wherever √ possible for dust suppression? 7.2 Is water pipe leakage and wastage √ prevented? 7.3 Are diesel-powered plants and √ Equipment shutoff while not in use to reduce excessive use? 7.4 Are energy conservation practices √ adopted? 7.5 Are metal or other alternatives √ used to minimize the use of timber? 7.6 Are pesticides used under the √ requirement of agriculture, fishers and Conservation Department? 7.7 Others (Please specify) 8. Emergency Preparedness and Response 8.1 Are fire extinguisher/ fighting √ Extinguisher is available but facilities properly maintained and not not maintained regularly, expired? Escape not committed for maintenance. blocked/obstructed? 8.2 Are accidents and incidents √ One separate person reported and reviewed and corrective allocated for precaution. and preventive actions identified and recorded? 8.3 Are Workers provided with √ Personal Protective Equipment (PPE) like boot, gloves, helmet? 8.4 Is First –Aid Kit maintained at Site? √ 8.5 Any fatal injury so far? √ During electric pole reallocation one person died. 8.6 Others (Please specify)

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Appendix II: Meeting minutes regarding to construction of reservoir at Panchakanya, Bijayapur.

July-December, 2017

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Appendix III: Review Mission Recommendations for Future Actions

S.N. Agreed Action Progress Remarks 1 Confirmation of the aide-memoire Confirmed. Due Date: 30 November 2017 Responsibility: MoUD 2 Solid waste management expert to be Being mobilized.. mobilized at Janakpur Due Date: 30 November, 2017 Responsibility: PIU, Janakpur SMC 3 Address social concerns against ISWM Social safeguard landfill site and bring consensus among expert of DSC all stakeholders. Janakpur mobilized. Due date: 31 December 2017 Consultation with the Responsibility: Janakpur SMC/PIU/PCO stakeholder ongoing. 4 Finalize indigenous people development Under process, plan and consultation with indigenous dialogue continued people's organization.. with respective Due Date: 15 December 2017 indigenous people's Responsibility: PIU, Dharan/PCO/DSC organizations. 5 Decision made on transfer of NWSC Follow up continued. Dharan's Assets and Liabilities to Dharan Water Supply Management Board and Staff Regulation. Due Date: 15 December 2017 Responsibility: MoUD 6 Address social concerns and bring Under process. consensus among all stakeholders to commence Bijayapur RVT. Dialogue continued with Due Date: 15 December 2017 respective stakeholders. Responsibility: Dharan SMC 7 Submit revised design for Janakpur Follow up is being done. drainage and road improvement works to PCO. Due Date: 31 December, 2017 Responsibility: DSC 8 Activate grievance redress mechanism and Orientation on Record record keeping system in Janakpur grievance redress keeping will Due Date: 15 November, 2017 Responsibility: PIU, DSC mechanism will be be conducted soon. continued 9 Finalize rate negotiation and pay Under process, compensation to the affected persons in Nepalgunj ISWM landfill site. Due Date: 31 December 2017 Responsibility: PIU 10 Prepare tree plantation plan along with Environmental Expert is arrangement of growing sapling with on board nursery (at least a meter height) for plantation along the road(Janakpur and Started to identify Dharan), and SLF boundary for green places for road side cover and visual barrier. plantation and Nursery

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S.N. Agreed Action Progress Remarks Due Date: 30 November 2017 for plants. Responsibility: PIUs/DSCs 11 Establish a working group at municipality Working group (Siddharthanagar) to review as built road established on and drainage improvements works and list the corrective actions for the contractor to December 18, 2017. rectify during defects and liability period. Due Date: 30 November, 2017 Responsibility: PCO/municipality 12 Complete procurement of office equipment Not yet due for GESI Units. Due Date: 31 January, 2017 Responsibility: GESI(MoUD)/PCO

13 Depute full time project manager to Under process Janakpur and Nepalgunj and additional engineer to Janakpur for effective monitoring of project activities. Due Date: 31 December 2017 Responsibility: MoUD/DUDBC/PCO

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Appendix IV: Photographs

Pindeshwor RVT, Dharan Municipality Manhole construction in approach road at manhole no. 12 (S8-L1), Janakpur SMC

Labour are using PPE during Concrete kerb Siddharthanagar Municipality laying (ch. 6+300 L/S), Dharan

Information dissemination and discussion on Pre visit of landfill site in Waling and solid waste management plant for Omsatiya Pokhara by TL NGO and representative of Gaupalika people representatives, Municipality, Siddharthanagar Siddharthanagar Municipality

July-December, 2017

Community Infracture in Nepalgung Fencing work in progress at SWM, Submetropolitan city Nepalgunj

Hume pipe laying in S1-L3, Janakpur Sub- Applying Safety measures (CH- 4+870) to metropolitan city local people, Janakpur Sub-metropolitan city

Spraying of water during construction, at Existing drainage clearance for road edge Janakpur Sub-metropolitan city B/W (ch. 7+620 to 7+640 L/S