Environmental Monitoring Report Semestral Report July - December 2014 IND: National Capital Region Urban Infrastructure Financing Facility-Project 1 Prepared for the National Capital Region Planning Board and the Asian Development Bank. This environmental monitoring 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. 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. Environmental Monitoring Report Loan Number: 2660 IND Reporting Period: (July 2014 – December 2014) INDIA: National Capital Region Urban Infrastructure Financing Facility Prepared by: Executing Agency: National Capital Region Planning Board January 2015 New Delhi ABBREVIATIONS ADB - Asian Development Bank CC - Construction Contractor CFE - Consent for Establishment DIMTS - Delhi Integration Multimodal Transit Service DPCC - Delhi Pollution Control Committee DPR - Detailed Project Report EA - Executing Agency EIA - Environmental Impact Assessment ESMC - Environmental and Social Management Cell ESMS - Environmental and Social Management System GoI - Government of India HSPCB - Haryana State Pollution Control Board HSRDC Haryana State Road Development Corporation IA - Implementing Agency IEE - Initial Environmental Examination MFF - Multi-tranche Financing Facility NCR - National Capital Region NCRPB - National Capital Region Planning Board NCRUIFF National Capital Region Urban Infrastructure Financing Facility OCR - Ordinary Capital Resources PFR - Periodic Financing Request PHED - Public Health Engineering Department PMC - Project Management Consultant PMU - Project Management Unit PPTA - Project Preparatory Technical Assistance i I. ENVIRONMENTAL MONITORING REPORT 1 A. Implementation Arrangements 3 B. NCRPB’s Environmental and Social Management System 4 C. Current Implementation Status 6 D. Compliance Status with Government Environment Regulations 11 E. Compliance Status with Loan Covenants 12 F. Implementation Status of Environmental Management Plans 15 G. Follow Up Actions and Conclusions 53 Table 1: First Tranche Subprojects (PFR1 Indicative list) ........................................................ 2 Table 2: Additional Staff of PMU and Status ............................................................................. 3 Table 3: Implementation Status of Tranche1 Subprojects/Packages ....................................... 7 Table 4: Compliance Status with Government Environmental Regulations ........................... 11 Table 5: Compliance Status of Loan Covenants ..................................................................... 14 Table 6: Implementation of EMP and Compliance Status – Sonepat Roads ......................... 17 Table 7: Implementation of EMP and Compliance Status – Sonepat to Gohana .................. 25 Table 8: Implementation of EMP and Compliance Status – Bahadurgarh Badli Road .......... 34 Table 9: Implementation of EMP and Compliance Status – GLMB Road .............................. 42 Table 10: Implementation of EMP and Compliance Status-Drainage Scheme Sonepat ....... 51 Appendix 1: Country’s Environmental Regulatory Framework ............................................... 56 Appendix 2: Site Photographs of Badli-Gurgaon Road in Jhajjar/Gurgaon ........................... 57 Appendix 3: Site Photographs of Sonepat Gohana Road ...................................................... 58 Appendix 4: Site Photographs of Gohana Lakhanmajra Bhiwani Road ................................. 59 Appendix 5: PCCF, Govt. of Haryana letter ............................................................................ 60 Appendix 6: Workshop organized by NCRPB to develop Hisar CMA. ................................... 64 Appendix 7: Awareness camp on Environmental Safety -M/s Gawar Construction .............. 66 Appendix 8: Appointment of External Auditor for ESMS Environment-section ...................... 68 Appendix 9: Projects to be audited by External Auditor .......................................................... 69 Appendix 10: Environmental Audit Programme of ESMS External Auditor ........................... 71 ii I. ENVIRONMENTAL MONITORING REPORT A. Introduction 1. The National Capital Region Planning Board is a statutory body under the Ministry of Urban Development, constituted through an Act of Parliament in 1985. It has the mandate to prepare a Regional Plan for the development of the National Capital Region, coordinating and monitoring the implementation of such plan and evolving harmonized policies for control of land uses and development of infrastructure in the Region so as to avoid any haphazard development. Besides, the Board also provides financial assistance by way of loan to critical infrastructure projects being undertaken by constituent State Governments, ULBs and other parastatals of the State Governments, in the region. NCRPB Regional Plan-2021 envisages massive scaling up of urban infrastructure investment in NCR. However, due to weak capabilities of a number of borrowers i.e. ULBs, State Governments etc. adequate number of projects have not been prepared and there are systematic weaknesses in project execution. 2. The scaling up of urban infrastructure by implementing priorities of Regional Plan 2021 requires provision of longer tenure low cost debt, technical capacities for implementing agencies (borrowers of NCRPB) in urban planning, project development, project implementation, identification of bankable projects and enabling private sector investments, improving urban basic service provision, among others, through partnership with private sector. Besides, provision of adequate incentives needed to motivate cities and state entities to undertake public and environmental urban infrastructure projects that can mitigate greenhouse gas emission, and introduce private sector efficiencies. The National Capital Region Urban Infrastructure Financing Facility (NCRUIFF) is built around this rationale. NCRUIFF is being funded by the Asian Development Bank. 3. The impact of NCRUIFF is to improve overall quality of life and economic well-being of urban residents in India's NCR. The outcomes of NCRUIFF are improved economic growth support and public and environmental urban infrastructure services in the participating cities and/or sub regions of the NCR in accordance with the Regional Plan priorities. To this effect, NCRUIFF will support NCRPB in (i) leveraging its resources through a line of credit and other market access support services, and (ii) support a project development facility that would focus on design, implementation and delivery of quality growth oriented and public and environmental urban services and support capacity enhancements as well. 4. There are three broad outputs of this project: (i) NCRUIFF would support creation of high quality urban public and environmental infrastructure. This would include water supply, sanitation and waste management projects including possible regional initiatives. (ii) to foster economic growth and mobility, NCRUIFF will support creation of connectivity and/or up-gradation of transit infrastructure in the region. (iii) Implementation support for strengthening of NCRPB and participating implementation agencies' capacity to design and execute high quality urban infrastructure project, and other capacity development activities including enabling public-private partnerships. 5. The Facility is being provided to NCRPB in line with the provisions of the Multitranche Financing Facility (MFF) modality of the ADB. Besides physical infrastructure, facility also supports NCRPB's institutional transformation in line with the evolving infrastructure and financial sector reforms. The total estimated project cost is US$ 200 million, of which 75% of the financial assistance is provided by ADB (i.e. US$ 150 million) from its Ordinary Capital Resources (OCR) and the remaining is to be contributed by NCRPB and its sub borrowers. 1 6. The Facility supports subprojects that are located in and/or that assist the National Capital Region and the notified counter magnet areas. The sub-borrowers comprise local (sub-national) authorities/ governments, urban development authorities, statutory bodies set up by the state governments, the utility boards or corporations and special purpose vehicles sponsored by the above. The subprojects, among others, may include following subsectors: (i) Water supply (ii) Waste water treatment and drainage (iii) Waste management (Municipal and Industrial) (iv) Urban transport, multimodal terminals and regional transport and connectivity (v) Slum development (vi) Other economic growth infrastructure like industrial estates, social infrastructure (vii) Capacity building and institutional development 7. NCRPB has submitted to ADB the first tranche PFR (Periodic Financing Request) for $78 million to finance infrastructure subprojects listed in the Table below. As the Facility is provided as an MFF modality through a financial institution and the proposed projects will be reviewed for environmental and social safeguard compliance before disbursement, the list of projects proposed in the PFR are purely indicative. Further, this will also provide flexibility to NCRPB in selecting compliant subprojects