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Government of Nepal National Planning GOVERNMENT OF NEPAL NATIONAL PLANNING COMMISSION UNLOCKING HUMAN CAPITAL FOR A PROSPEROUS NEPAL PROJECT ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK (ESMF) (Final Draft for Disclosure) APRIL 2021 Table of Contents Executive Summary ................................................................................................................................. 5 Abbreviations and Acronyms .................................................................................................................. 9 1. Background ................................................................................................................................... 11 1.1. Rationale and Objective of the ESMF ................................................................................... 11 1.2. Methodology ......................................................................................................................... 12 1.3. Limitations of the Study ........................................................................................................ 12 2. Project Description ........................................................................................................................ 13 2.1. Project Components ............................................................................................................. 13 2.2. Activities with Potential Environmental and Social Impacts ................................................ 14 2.3. Potential social risks and impacts ......................................................................................... 14 2.4. Eligibility Criteria for and Exclusion of Subprojects for E&S Risk Management ................... 16 3. Legal, Regulatory and Policy Framework ...................................................................................... 17 3.1. Relevant National Laws and Policies ..................................................................................... 17 3.2. Provisions of E&S Standards of the World Bank ................................................................... 18 3.3. Comparison Between National and World Bank E&S Requirements ................................... 22 3.4. International Conventions .................................................................................................... 27 3.5. The World Bank Group’s Environmental Health and Safety Guidelines ............................... 27 3.6. Specific Labour and OHS-Related Considerations in the Context of COVID-19 .................... 28 4. Environmental and Social Baseline ............................................................................................... 31 4.1. Environmental Profile ........................................................................................................... 31 4.2. Socio-Economic Profile ......................................................................................................... 37 5. Potential Environmental and Social Risks and Impacts ................................................................ 45 6. Environmental and Social Management Procedures .................................................................... 53 6.1. Category of Sub-projects ...................................................................................................... 53 6.2. Environmental and Social Screening ..................................................................................... 54 6.3. Preparation of Management Plans ....................................................................................... 54 6.4. Approval of Subproject ......................................................................................................... 55 6.5. Implementation of Mitigation Measures .............................................................................. 55 7. Stakeholder Engagement and Disclosure ..................................................................................... 57 7.1. Objectives.............................................................................................................................. 57 7.2. Stakeholder Identification and Categorization ..................................................................... 57 7.3. Stakeholder Engagement Strategy ....................................................................................... 58 7.4. Engagement Tools ................................................................................................................. 59 2 7.5. Proposed Strategy for Information Disclosure ..................................................................... 60 7.6. Stakeholder Engagement Strategy During COVID-19 Crisis .................................................. 60 7.7. Summary of Previous Stakeholder Engagement Activities ................................................... 61 7.8. Grievance Redressal Mechanism (GRM) ............................................................................... 61 7.9. Handling SEA/SH-Related Grievance..................................................................................... 62 8. Project Implementation Arrangements, Responsibilities, and Capacity Building ........................ 64 8.1. Overall Project Management and Coordination ................................................................... 64 8.2. Responsibility for Implementing and Monitoring the ESMF ................................................ 66 8.3. Capacity of the NPC and Other Agencies in Implementing the ESMF .................................. 67 8.4. Monitoring and Reporting Plan............................................................................................. 68 Annex 1: Environmental and Social Screening Form Template ............................................................ 70 Annex 2: Environmental and Social Management Plan (ESMP) Template ........................................... 75 Annex 3: Labour Management Procedures .......................................................................................... 80 Annex 4: Resettlement Framework ...................................................................................................... 89 Annex 5: Subproject ESMP Compliance Report Template.................................................................... 99 Annex 6: Responsibility and Obligations of Contractors for Subprojects ........................................... 100 Annex 7: E&S REGULATORY FRAMEWORK Annex 5: E&S Regulatory Framework ............................. 102 Annex 8: ESF/Safeguards Interim Note on COVID-19 Considerations in Construction/Civil Works Project ................................................................................................................................................. 109 List of Tables Table 3-1 Applicability of the relevant ESSs for the project ................................................................. 19 Table 3-2 Comparison between national and WB E&S requirements .................................................. 22 Table 3-3 EHS guidelines and applicability ............................................................................................ 27 Table 4-1 Water Generation in Major Hospitals ................................................................................... 36 Table 4-2 GDP growth rate (Real) in % ................................................................................................. 37 Table 4-3 Annual National Consumers' Price Inflation (Percentage Change) ....................................... 38 Table 4-4 Contribution of remittance to the economy......................................................................... 38 Table 4-5 Areas, Population and sex ratio in province level ................................................................. 39 Table 4-6 Nepal’s HDI trends based on consistent time series data .................................................... 39 Table 4-7 Province-wide poverty and life expectancy in FY 2018 ........................................................ 40 Table 4-8 Province-wide unemployment rate in FY 2018 ..................................................................... 40 Table 4-9 Sub-categorization of the 60 different indigenous nationalities .......................................... 40 Table 4-10 Scheduled Castes of Dalit Community in Nepal .................................................................. 41 Table 4-11 Province-wide Details of Different Levels of Schools.......................................................... 43 Table 4-12 Number of Health Facilities and the health workforce....................................................... 44 Table 4-13 Number of Health Facilities ................................................................................................ 44 Table 6-1 Stages of Subproject Development & E&S Activities and Requirements ............................. 56 Table 7-1 Stakeholder Engagement Strategy........................................................................................ 58 Table 8-1 Summary of the responsible Agencies .................................................................................. 65 3 Table 8-2 Organogram of the E&S activities related to the project ..................................................... 65 Table 8-3 Role and Responsibilities in implementing the ESMF ........................................................... 66 Table 8-4 Planning for Capacity Building Training ...............................................................................
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