Environmental and Social Management System Arrangement Updated Version Project Number: 41598 November 2014 IND: National Capital Region Urban Infrastructure Financing Facility – Tranche 2 An environment and social management system arrangement (ESMS) is prepared by the National Capital Region Planning Board and is made publicly available in accordance with ADB’s public communications policy (2011). It does not necessarily reflect the views of ADB. NATIONAL CAPITAL REGION PLANNING BOARD ENVIRONMENTAL AND SOCIAL MANAGEMENT SYSTEMS REPORT WITH ANNEXES VOLUME 1 and 2 NCRPB 10/22/2014 THIS IS A BORROWERS DOCUMENT Contents ENVIRONMENTAL AND SOCIAL MANAGEMENT SYSTEM .................................................... 4 I. BACKGROUND .................................................................................................................. 4 A. About NCRPB .................................................................................................................... 5 B. NCRPB Functions ............................................................................................................. 6 C. NCRPB Project Financing ................................................................................................. 6 1. Background ............................................................................................................................ 6 2. Types of Projects ................................................................................................................... 7 3. Project Cycle .......................................................................................................................... 9 D. Environmental and Social Management System (ESMS) ............................................. 10 1. Existing Due-diligence Processes .........................................................................................10 a. Environment ..............................................................................................................10 b. Social ........................................................................................................................11 3. Need for an ESMS ................................................................................................................11 4. Approach towards Developing the ESMS ..............................................................................11 E. ESMS Defined .................................................................................................................. 11 F. Purpose of the ESMS ...................................................................................................... 12 1. Environmental .......................................................................................................................12 2. Social ....................................................................................................................................12 G. Structure of the ESMS..................................................................................................... 12 H. Maintenance of the ESMS ............................................................................................... 13 A. Overview .......................................................................................................................... 14 1. Environmental Safeguards ....................................................................................................14 2. Social Safeguards .................................................................................................................14 B. Legal Requirements ........................................................................................................ 14 1. Environmental .......................................................................................................................14 a. Introduction ................................................................................................................14 b. Constitutional Provisions ...........................................................................................15 c. National Environment Policy, 2006 ............................................................................15 d. Laws on Environmental Assessment .........................................................................15 e. Other Relevant Environmental Legislations ...............................................................15 2. Social ....................................................................................................................................16 a. Introduction ................................................................................................................16 b. National Rehabilitation and Resettlement Policy (NRRP) ..........................................16 c. New Land Acquisition (LA) Act 2013 ..........................................................................16 d. Other Relevant Social Legislations ............................................................................17 3. Donor Requirements .............................................................................................................17 a. Environmental Safeguards ........................................................................................18 b. Social Safeguards .....................................................................................................19 C. Regional Plan .................................................................................................................. 27 A. Environmental Policy ...................................................................................................... 28 B. Social Policy .................................................................................................................... 28 C. Draft Entitlement Framework .......................................................................................... 29 IV. Operational Procedures .................................................................................................. 37 A. Screening and Categorization ........................................................................................ 37 1. Environmental .......................................................................................................................37 2. Social ....................................................................................................................................39 2 B. Safeguards Guidance-Sharing with Project Proponent/IA ........................................... 41 C. Project Cycle and Safeguards Interventions / Verification ........................................... 43 1. Environmental .......................................................................................................................43 2. Social ....................................................................................................................................45 D. Training and Capacity Building ...................................................................................... 48 E. Monitoring and Reporting ............................................................................................... 48 F. ESMS Audit Procedure ................................................................................................... 49 G. Information Disclosure and Grievance Redressal Procedure ...................................... 51 A. Roles of Different Organizations .................................................................................... 52 1. NCRPB .................................................................................................................................52 2. Appraisal Agencies ...............................................................................................................52 3. Project Proponents/Implementing Agencies (IAs) ..................................................................52 4. Design Consultants ...............................................................................................................53 5. Construction Contractors .......................................................................................................53 6. Project Management or Supervision Consultants (PMCs or SCs) .........................................53 7. Operation and Maintenance (O&M) Agencies .......................................................................53 B. Organizational Structure ................................................................................................ 53 1. Environmental .......................................................................................................................54 2. Social ....................................................................................................................................54 C. Roles, Responsibility, and Authority ............................................................................. 57 1. Environmental Safeguards Function......................................................................................57 2. Social Safeguards Function ..................................................................................................57 D. Budgetary Resources ..................................................................................................... 58 3 ENVIRONMENTAL AND SOCIAL MANAGEMENT SYSTEM I. BACKGROUND 1. In compliance with ADB Safeguard Policies and various prevalent, policies and Rules related