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Social Safeguard Due Diligence Report Project Number: 43448-013 August 2021 Nepal: Bagmati River Basin Improvement Project- Additional Financing Prepared by High Powered Committee for Integrated Development of Bagmati Civilization (HPCIDBC) Ministry of Urban Development (Government of Nepal) for the Asian Development Bank. Table of Contents 1. Project Background ........................................................................................................... 1 2. Subproject Components ................................................................................................... 1 3. Resettlement Planning and Implementation ................................................................... 4 4. Need and Objective of the Due Diligence ....................................................................... 5 5. Methodology for Due diligence ........................................................................................ 6 6. Findings of Due Diligence Study ..................................................................................... 7 7. Policy Non-compliance during RP Implementation ..................................................... 11 8. Corrective Action Plan ................................................................................................... 11 9. Grievance Redress Mechanism ..................................................................................... 15 10. Conclusion and Recommendations ............................................................................ 15 Annexure-1: Guthi Sansthan Act-1976 Annexure-2: Letter for Valuation Annexure-3: Meeting with Kathmandu CDO Annexure-4: Consultation among Stakeholders Supplementary Appendix-1: Details of Consultation Findings and Documents (Submitted as Separate Volume) This social safeguard due diligence 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 on ADB’s 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. 1. Project Background 1. Bagmati River is the symbol of civilization of the Kathmandu Valley. Water flowing in the river is considered holy, thus used in all kinds of rituals carried out at household level and also in the temples located in the periphery. 2. The river originates at Shivapuri Hills near Baghdwar and flows southward through Gokarna and Pashupati area and ultimately meets Manohara River, Dhobi Khola, TukuchaKhola (Ichhumati), Bishnumati River and Nakhu Khola before it passes through Chobhar George. At one point it flows in between Kathmandu, the capital city, and Patan, two important cities famous for art and culture. Both of these cities are well known for their rich cultural heritage and thus, considered highly potential for cultural tourism. These factors show how important the River Bagmati is from the religious, cultural, environmental, tourism and administrative points of view. 3. Despite its importance, the condition of Bagmati River is becoming deteriorated day by day in last five decades due to the following reasons: a. Existing practices of throwing solid waste into the river b. Use of Bagmati River and its tributaries as wastewater discharging point from city settlements, c. Deteriorated built environment along Bagmati River corridor due to dilapidated conditions of historical monuments located in the stretch between Thapathali and Teku Dobhan, d. Presence of squatters’ settlements on River Banks and e. Degraded water basin caused by the extraction of excessive quantity of sand from the river bed. 4. To address the growing need of Bagmati improvement and save it from encroachments, the Government of Nepal (GoN) has requested the Asian Development Bank (ADB) for financial support amounting US $ 63 million. The GoN on its part is contributing US $ 15.8 million for the Project titled as Bagmati River Basin Improvement Project-Additional Financing. The total Project cost thus comes to be US$ 78.80million. 5. The Bagmati River Basin-additional financing is designed to support three subprojects (i) Landscaping Improvement works along Bagmati River Banks; (ii) Reconstruction of historical temples and monuments; and (iii) Tukucha wastewater treatment plant. 2. Subproject Components i. Landscaping Improvement works along Bagmati River Banks (Contract Id no.: BRBIP-AF/01W/2019) 6. "Landscaping along the Bagmati River corridor” is being implemented in four separate locations situated along the Bagmati River under Sub-Project 2. They are Uttargaya and Gokarna in the North, Gaurighat at the center and Thapathali to Balkhu stretch at the downstream side of the Bagmati River. Administratively, the project area lies in ward no. 4 of Gokarneswor Municipality, ward no. 8, 11 and 12 of Kathmandu Metropolitan City and Ward no. 1, 2 and 10 of Lalitpur Metropolitan City. This sub-project covers an area with monuments of national importance like the Temple of Lord Pashupatinath, Gokarneswor Mahadev, Uttar Gaya 1 and also famous Ghats like Uattar Bahini Ghat, Gauri Ghat, Gokarneswor Ghat, Pachali Ghat and Kalmochan Ghat, where people perform annual rituals (Shradha) remembering their dead family members. The components of the sub-project include river training work, improvement of Ghats with Bhakaris1, beautification of riverbanks through landscaping, plantation and other works like construction of toilets, sheds, parking area, installation of solar lights and at least one school building and a picnic spot at Uttar Gaya. All proposed components are constructed in the government land (Bagmati corridor RoW) therefore no any additional land is acquired for the construction of these components. ii. Reconstruction/Restoration of Historical Temples and monuments 7. Under the component of reconstruction/restoration of historical temples and monuments, there are three packages as described below. a. Package -1: (Contract ID No.: BRBIP-AF/02W/2019,) Total 84 occupants (40 male and 44 female) have been living in different 7 Sattals. Please see table-2 for list of occupants per building and per package.) 8. "Restoration/re-construction of Historic Temples and Monuments” is one of the three packages to be implemented under subproject 1. The area, where these monuments are situated, is bounded by the road linking to Gusingal Bridge in the east, Bishnumati River in the west, inner road linking the suspension bridge from the backside of Teku Hospital in the north and Bagmati River in the south, but the exception of Bam Bikteswor compound housing Teen Dewal Temple. Administratively, the entire area is located in Ward No. 12 of Kathmandu Metropolitan City. The number of monuments to be restored/re-constructed under the Package-1 is 11. Out of them, two are temples and remaining 9 are historical buildings (Nepali – Sattals). The Sattals being renovated under Package -1 are Karki Sattal, Manandhar Sattal, Munshi Ghat Sattal, Panchanari Sattal Laxmeshwor Sattal, Rajbhandari and Purohit Ghat Sattal. The table 2 shows the ownership and number of occupants per building and per package. Regarding the historical buildings, almost all of them were built with financial support from local communities. For example: Karki Sattal was built in 1878 with financial support from a prominent person representing the Karki family and accordingly, it was named Karki Sattal. Now it is owned by Rajguthi2. Likewise, Manandhar Sattal was built with a donation from a prominent businessman - Ganesh Das Manandhar. At present it is owned by the Manandhar Trust3. Others are Munshi Ghat Sattal built by Munshis (Pradhans residing in MaruTole of Kathmandu) and now it is under the ownership of private Guthi, Rajbhandari Sattal by Rajbhadari community from Yangal Tole, Kathmandu and now it is owned by Rajguthi. The Guthi corporation act 1976 has defined the types of Guthi and their roles4 and the Guthi Act 1976 is attached in Annexure –1. The detail list of occupants per building and per package is given in table -2 1 Bhakari means sand dune bags places in the river bank. 2 Rajguthi is government entity run by Guthi Sansthan under the Guthi Corporation Act 1976.Based on Guthi Act 1976.Similarly private Guthi’s ownership lies with member of private Guthi and member of the private Guthi is called Guthiyar (trustee) 3 Manandhar, Munshi Ghat, Panchanari are under private ownership whereas Rajbhandari, Laxmeshwor and Purohit Ghat are under the ownership of Rajguthi. 4 “Guthi” means and includes a Guthi (trust) endowed by any philanthropist through relinquishment of his or her title to a movable or immovable property or any other income-yielding property or fund for the operation of any shrine (Matha) or festival, worship or feast of any God, Goddess or for the construction, operation or maintenance of any 2 9. Now all Sattals are under the ownership of Guthi Sansthan either it was built by individuals or communities because the land where the Sattals are constructed is government land. In the normal situation the ownership of private Guthi always remains among private Guthi members. However, Guthi system in Nepal is very old so no any issues regarding ownership in these Sattals. Further basically these Sattals were built