Environment and Social Management Framework (ESMF) Distribution System Upgrade & Expansion Project (DSUEP) Nepal Electricity Authority Kathmandu, Nepal Date: August 2019 1 TABLE OF CONTENTS Abbreviations & Acronyms ................................................................................................. 4 Executive Summary ........................................................................................................... 7 1. Project background ....................................................................................................15 2. Baseline information ..................................................................................................20 3. Policy & framework for E&S issues ............................................................................65 4. E&S Safeguard Approach ..........................................................................................96 5. Operationalization of ESMF .....................................................................................111 6. Consultation & Information Disclosure .....................................................................115 7. E&S Safeguard Monitoring.......................................................................................120 8. Budget for Implementation of ESMF ........................................................................121 Annexures Annexure 1: Environment and Social Screening Checklist Annexure 2: Environment and Social Management Plan Format Annexure 3: Entitlement Matrix Annexure 4: Environmental and Social Monitoring Checklist P a g e | ii Distribution System Upgrade & Expansion Project Environment & Social Management Framework List of Tables Table 1 - Key Stakeholders and their role and responsibility for Initial E&S screening, due diligence and supervision ..................................................................................................... 9 Table 2 - Districts selected for DSUEP ................................................................................16 Table 3 - Details regarding 33 / 11 kV substation locations shared by NEA ........................16 Table 4 - Major castes in project areas ................................................................................20 Table 5 - Components of DSUEP ........................................................................................44 Table 6 - Minimum distance which ought to be from the wire to the house and tree ...........57 Table 7 - Minimum distance which ought to be from wire to the ground ..............................57 Table 8 - Minimum Clearance between the wires for HT .....................................................60 Table 9 - Minimum Clearance between the wires for LT .....................................................61 Table 10 - Summary of Mitigation Measures .......................................................................62 Table 11 - Land Acquisition Process as per Land Acquisition Act 2034 (1977) ...................88 Table 12 - Categories of indigenous people groups ............................................................90 Table 13 - Possible strategies and activities for the development of vulnerable communities ............................................................................................................................................92 Table 14 - Suggested gender development plan .................................................................94 Table 15 - Criteria of EIA and IEE study ............................................................................100 Table 16 - E&S Safeguard stages involved in Project Cycle ............................................105 Table 17 - Monitoring Plan .................................................................................................109 Table 18- Roles and responsibility matrix ..........................................................................111 Table 19 - Grievance redressal mechanism flowchart .......................................................119 Table 20 - E&S Budget Breakdown sheet .........................................................................121 P a g e | 3 Distribution System Upgrade & Expansion Project Environment & Social Management Framework ABBREVIATIONS & ACRONYMS Acronym Full form AIIB Asia Infrastructure Investment Bank AP Affected People ARAP Abbreviated / Resettlement Action Plan CDC Compensation Declaration Committee CDO Chief District Officer CFUG Community Forest User Group CITES Convention on International Trade in Endangered Species COI Corridor of Impact DBH Diameter at Breast Height DCC District Coordination Committee DFO District Forest Office DoA Department of Agriculture DSUEP Distribution System Upgrade and Expansion Project DT Distribution Transformer E&S Environmental and Social EHS Environmental, Health, and Safety EHV Extra High Voltage EMF Electromotive Force ESMP Environment and Social Management Plan EPA Environment Protection Act EPR Environment Protection Rules ESIA Environmental and Social Impact Assessment ESMF Environmental and Social Management Framework ESMU Environmental and Social Management Unit ESP Environmental and Social Policy P a g e | 4 Distribution System Upgrade & Expansion Project Environment & Social Management Framework Acronym Full form ESS Environmental and Social standards ESSD Environmental and Social Studies Department FI Financial Intermediary FY Financial Year GAP Gender Action Plan GIIP Good International Industry Practice GoN Government of Nepal GRC Grievance Redress Committee GRM Grievance Redressal Mechanism HCI Health Care Institution HT High Tension HV High Voltage ILO International Labour Organization IP Indigenous People IPDP Indigenous Peoples Development Plan IUCN International Union for Conservation of Nature LA Land Acquisition LAA Land Acquisition Act LARC Land Acquisition Resettlement and Compensation LCF Local Consultative Forum LT Low Tension LV Low Voltage MDG Millennium Development Goals MHP Micro Hydro Power-plants MoEWI Ministry of Energy, Water Resources and Irrigation MoPE Ministry of Population and Environment MVA Mega Volt Ampere P a g e | 5 Distribution System Upgrade & Expansion Project Environment & Social Management Framework Acronym Full form MW Mega Watt NEA Nepal Electricity Authority NEFIN Nepal Federation of Indigenous Nationalities NGO Non Government Organization NHRC Nepal Health Research Council NRS Nepali Rupees PIC Project Information Center PIU Project Implementation Unit PMU Project Management Unit PPTA Project Preparation Technical Assistance PSF Project Preparation Special Fund RAP Resettlement Action Plan RMS Root Mean Square SA Social Assessment ToR Terms of Reference UN United Nations VCDP Vulnerable Community Development Plan P a g e | 6 Distribution System Upgrade & Expansion Project Environment & Social Management Framework EXECUTIVE SUMMARY This Environmental and Social Management Framework (hereinafter referred as “the Framework or “ESMF”) is prepared for addressing environmental and social safeguard issues in “Distribution System Upgradation and Expansion Project (DSUEP) of NEA. The ESMF sets out the principal, rules, guidance, steps, responsibility and procedures for assessing and addressing environmental and social risks and impacts as part of the process of preparation of the sub-projects (33/11kV substations and distribution/transmission line) to be implemented under DSUEP through the support of international financing institutions (IFIs). Likewise, the ESMF aligns with environmental and social provisions of the Government of Nepal (GON) and constitutes a common framework for environmental and social (E&S) safeguard provisions of the Asian Infrastructure Investment Bank (AIIB) and the European Investment Bank (EIB), collectively called the “Financiers.” This ESMF guides the NEA / PIU and stakeholders in the process of selection, screening and categorization of environmental and social risks that require further assessment and preparation of specific instruments such as an Environmental and Social Management Plan (ESMP), Initial Environmental Examination (IEE), Environmental and Social Impact Assessment (ESIA), Resettlement Action Plan (RAP), and/or Indigenous Peoples Development Plan (IPDP) as per the safeguard requirements of the Financiers and GoN. This ESMF (i) provides an overview of the DSUEP and its components; (ii) explains the generally anticipated E&S impacts and mitigation measures for the DSUEP sub-projects; (iii) specifies the requirements that will be followed in relation to E&S screening, categorization, E&S assessment, institutional arrangements for implementation of the ESMF, monitoring, meaningful consultation with affected people and relevant stakeholders, and information disclosure requirements; (iv) specifies the safeguard criteria that determine the required E&S instruments to be prepared for each sub-project; (v) assesses the adequacy of the borrower’s capacity to implement national legal requirements and the safeguard standards of the Financiers and identifies the need for capacity building; (vi) specifies ESMF implementation procedures, including required resources and capacity development support; and (vii) describes the responsibilities of the borrower/executing agency (EA) in relation to the preparation, implementation, compliance monitoring and reporting of overall safeguards implementation. Through its contractual relationship with the Financiers, NEA will ensure E&S provisions are included in agreements