Initial Environmental Examination Project Number: 35173-013 Loan Numbers: 3157 and 8304, Grant Number:0405 July 2020 Nepal: Third Small Towns Water Supply and Sanitation Sector Project - Enhancement Towns Project Prepared by the Government of Nepal for the Asian Development Bank This initial environmental examination 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. Updated Initial Environmental Examination July 2020 NEP: Third Small Towns Water Supply and Sanitation Sector Project – Phidim, Khandbari, Duhabi, Belbari, Birtamod DasarathChanda, Mahendranagar, Adarshnagar-Bhasi, Tikapur, Sittalpati, Bijuwar and Waling Enhancement Town Projects Prepared by Small Towns Water Supply and Sanitation Sector Project, Department of Water Supply and Sewerage Management, Ministry of Water Supply, Government of Nepal for the Asian Development Bank. Updated Initial Environmental Examination (IEE) of 12 Enhancement Small Town Projects Government of Nepal Ministry of Water Supply Asian Development Bank Updated Initial Environmental Examination (IEE) Of Phidim, Khandbari, Duhabi, Belbari, Birtamod, DasarathChanda, Mahendranagar, Adarshnagar-Bhasi, Tikapur, Sittalpati, Bijuwar, and Waling Enhancement Town Projects Submitted in July 2020 PROJECT MANAGEMENT OFFICE (PMO) Third Small Town Water Supply and Sanitation Sector Project Department of Water Supply and Sewerage Management Ministry of Water Supply Updated Initial Environmental Examination (IEE) of 12 Enhancement Small Town Projects Table of Contents ABBREVIATIONS EXECUTIVE SUMMARY 1. INTRODUCTION ................................................................................................................................ 1 1.1. Background ......................................................................................................................................... 1 1.2. Basis and Extent of IEE Study ......................................................................................................... 1 1.3. Objective of the Study ....................................................................................................................... 2 1.4. Scope and Rationality of IEE ............................................................................................................ 2 1.5 Methodology Used in Preparing IEE ............................................................................................... 2 2. POLICY, LEGAL & ADMINISTRATIVE FRAMEWORK ............................................................... 3 3. PROJECT DESCRIPTION ............................................................................................................... 9 3.1 Background ......................................................................................................................................... 9 3.2 Objective of the Project ..................................................................................................................... 9 3.3 Project Location .................................................................................................................................. 9 3.3.1 Salient Feature of the Project ................................................................................................. 10 3.3.2 Construction Activities of Enhancement Projects ................................................................ 10 4. BASELINE INFORMATION OF THE SUBPROJECT AREA .................................................... 18 4.1. Mahendranagar FSTWSSSP Kanchanpur District ..................................................................... 18 4.2. Bhasi SSTWSSSP Kanchanpur District ....................................................................................... 18 4.3. Baitadi SSTWSSP Baitadi District ................................................................................................. 18 4.4. Walling FSTWSSP Syanja District ................................................................................................ 18 4.5. Bijuwar FSTWSSP Pyuthan District .............................................................................................. 19 4.6. Sitalpati TSTWSSP Salyan District ............................................................................................... 19 4.7. Tikapur TSTWSSP Kailali District .................................................................................................. 19 4.8. Khandbari SSTWSSP Sankhuwasabha district .......................................................................... 19 4.9. Duhabi SSTWSSP, Sunsari District .............................................................................................. 20 4.10. Birtamod FSTWSSP Jhapa District ....................................................................................... 20 4.11. Belbari FSTWSSP Morang District ........................................................................................ 20 4.12. Phidim SSTWSSP Panchthar District ................................................................................... 20 5. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES .................. 22 5.1. Beneficial Impacts ............................................................................................................................ 22 a. Construction Phase ......................................................................................................................... 22 b. Operation Phase .............................................................................................................................. 22 5.2. Adverse Impacts ............................................................................................................................... 23 a. Pre-construction Phase .................................................................................................................. 23 b. Construction Phase ......................................................................................................................... 24 c. Operational Phase ........................................................................................................................... 26 Updated Initial Environmental Examination (IEE) of 12 Enhancement Small Town Projects 5.3. Mitigation Costs ................................................................................................................................ 33 5.4. The COVID-19 Management in the Project Area ........................................................................ 33 6. NALYSIS OF ALTERNATIVES ...................................................................................................... 34 6.1. ALTERNATIVES CONSIDERED IN THE APPROVED IIE REPORTS ................................... 34 7. INFORMATION DISCLOSURE, CONSULTATION AND PARTICIPATION ........................... 35 7.1. Public Consultation .......................................................................................................................... 35 7.2. Disclosure .......................................................................................................................................... 35 8. GRIEVANCE REDRESS MECHANISM ....................................................................................... 36 9. ENVIRONMENT MONITORING PLAN ........................................................................................ 38 9.1. MONITORING AND REPORTING................................................................................................. 47 9.1.1. Environmental Monitoring Mechanism .................................................................................. 47 9.1.2. Monitoring Reporting Mechanism .......................................................................................... 47 10. CONCLUSIONS AND RECOMMENDATIONS ........................................................................... 48 REFERENCES List of Tables Table 1 : Policy and Legal Framework Relevant to the Enhancement Town Project ............................. 6 Table 2 : Details of Enhancement Project and Selection ............................................................................ 9 Table 3 : Salient Features of the Project ..................................................................................................... 12 Table 4 : Overview of Potential Environmental Impacts and Mitigation Measures ............................... 27 Table 5 : Cost for Environmental Mitigation Measures .............................................................................. 33 Table 6 : Environmental Management Plan Matrix .................................................................................... 39 List of Figures Figure 1 : Location Map of Enhancement Town Projects ......................................................................... 10 Figure 2: Grievance Redress Mechanism ................................................................................................... 37 Appendixes Appendix I: Rapid Environmental Assessment Checklist Appendix