Initial Environmental Examination Document Stage: Draft Project Number: 49107-004 May 2018 IND: Tamil Nadu Urban Flagship Investment Program – Providing Comprehensive Water Supply Scheme to Mathur, Madipakkam, Jalladampettai and Uthandi in Chennai City Prepared by Chennai Metropolitan Water Supply and Sewerage Board of the Government of Tamil Nadu for the Asian Development Bank. CURRENCY EQUIVALENTS (as of 11 May 2018) Currency unit – Indian rupee (₹) ₹1.00 – $0.015 $1.00 = ₹67.09 ABBREVIATIONS ADB – Asian Development Bank CMSC – construction management and supervision consultant CMWSSB – Chennai Metropolitan Water Supply and Sewerage Board CPCB – Central Pollution Control Board CTE – consent to establish CTO – consent to operate DPR – detailed project report EAC – expert appraisal committee EHS – environmental, health and safety EIA – environmental impact assessment EMP – environmental management plan ESS – environmental and social safeguards IEE – initial environmental examination MFF – multitranche financing facility NOC – no objection certificate OHS – occupational health and safety OHT – overhead tank PIU – program implementation unit PMU – program management unit REA – rapid environmental assessment ROW – right-of-way SPS – Safeguard Policy Statement STP – sewage treatment plant TNPCB – Tamil Nadu Pollution Control Board TNUFIP – Tamil Nadu Urban Flagship Investment Program TNUIFSL – Tamil Nadu Urban Infrastructure Financial Services Limited UGT – underground tank ULB – urban local body WHO – World Health Organization WTP – water treatment plant WDS - water distribution station WEIGHTS AND MEASURES C degree Celsius km kilometer lpcd litres per capita per day m meter MLD million liters per day mm millimeter km2 square kilometer NOTE In this report, "$" refers to United States dollars. 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 on ADB’s 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. CONTENTS Page EXECUTIVE SUMMARY I. INTRODUCTION 1 A. Background 1 B. Purpose of this Initial Environmental Examination Report 3 C. Report Structure 4 II. DESCRIPTION OF THE PROJECT 4 A. Project Area 4 B. Existing Water Supply System 4 C. Proposed Water Supply Scheme 5 D. Proposed Project 6 E. Implementation Schedule 12 III. POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK 12 A. ADB Policy 12 B. National Environmental Laws 12 IV. DESCRIPTION OF THE ENVIRONMENT 17 A. Methodology Used for Baseline Study 17 B. Physical Resources 17 C. Ecological Resources 19 D. Economic development 20 E. Cultural Resources - Protected Monuments 25 F. Subproject Site Environmental Features 25 V. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES 27 A. Pre-Construction Impacts – Design and Location 28 B. Construction Impacts 32 C. Operation and Maintenance Impacts 43 VI. PUBLIC CONSULTATION AND INFORMATION DISCLOSURE 44 A. Overview 44 B. Public Consultation 44 C. Information Disclosure 45 VII. GRIEVANCE REDRESS MECHANISM 45 VIII. ENVIRONMENTAL MANAGEMENT PLAN 48 A. Environmental Management Plan 48 B. Implementation Arrangements 65 C. Training Needs 68 D. Monitoring and Reporting 69 E. Environmental Management Plan Implementation Cost 70 IX. CONCLUSION AND RECOMMENDATIONS 71 APPENDIXES 1 Rapid Environmental Assessment Checklist 2 Salient Features of Major Labor Laws Applicable to Establishments Engaged in Construction of Civil Works 3 Sample Grievance Registration Form 4 Sample Outline Spoils (construction waste) Management Plan 5 Sample Outline Traffic Management Plan 6 Sample Environmental Site Inspection Report 7 Quarterly Reporting Format 8 Public Information Notice Template 9 Stakeholders consultation/ Focus Group Discussion Report 10 Environmental Audit of Existing 100 MLD Capacity Desalination Plant of Chennai Metropolitan Water Supply and Sewerage Board at Nemmeli EXECUTIVE SUMMARY The Tamil Nadu Urban Flagship Investment Program (TNUFIP) will advance India’s national urban flagship programs to develop priority urban and environmental infrastructure in ten cities located within strategic industrial corridors of Tamil Nadu (the State), including those within the East Coast Economic Corridor (ECEC), to enhance environmental sustainability, climate resilience, and livability. It will also strengthen the capacity of state and local institutions and improve urban governance. TNUFIP is aligned with the following impacts: (i) universal access to basic water and sanitation services achieved, (ii) world-class cities and industrial corridors across the State developed, and (iii) water security, reduced vulnerability to climate change in urban areas, and enhanced share of renewable energy achieved. TNUFIP will have the following outcomes: livability and climate resilience in at least ten cities in priority industrial corridors enhanced. The TNUFIP is structured under three outputs: (i) climate-resilient sewage collection and treatment, and drainage systems developed in at least eight cities; (ii) water supply systems in at least five cities improved with smart features; and (iii) institutional capacity, public awareness, and urban governance strengthened. TNUFIP will be implemented over an 8-year period beginning in 2018, and will be funded by Asian Development Bank (ADB) via its multitranche financing facility (MFF). The Subproject. Chennai is the fourth largest Metropolitan city in India. In 2011, the Chennai City has been expanded to 426 square kilometers (km2) from 176 km2 by the annexure of 42 adjacent Urban Local Bodies. The entire erstwhile Chennai city had been provided with water supply and sewerage facilities. Hence CMWSSB has proposed to provide water supply and sewerage facilities in all the 42 added areas of Chennai city on par with erstwhile Chennai City. In the expanded Chennai city, at present water supply scheme has been completed in 9 added areas and in 27 added areas water supply schemes are under implementation. For the balance 6 added areas DPR for water supply scheme has been prepared. Now, under the TNUFIP, it is proposed to provide water supply schemes in 4 added areas namely Mathur, Madipakkam, Jalladampettai and Uthandi having an extent of 2.98 km2, 3.40 km2, 2.28 km2 and 3.41 km2 respectively totalling to 12.07 km2. The total road infrastructures available in the above four locations is around 207 km. The components of proposed water supply scheme includes: (i) water distribution station (WDS) at Mathur Zone II, which include 200 kl (kiloliter) capacity underground tank (UGT), and 1200 kl capacity overhead tank (OHT), and a pump house, (ii) WDS at Madipakkam, which include 900 kl UGT, 5,000 kl OHT and a pump house, (iii) WDS at Jalladampettai, which include 200 kl UGT, 1,300 kl OHT, and a pump house, (iv) WDS at Uthandi, which include 200 kl UGT, 800 kl OHT, and a pump house, (v) distribution network of total length 219.80 km of ductile iron (DI) pipes of diameter 100-900 millimeters (mm) covering all four water supply schemes, and (vi) 23,716 house service connections. Since it is proposed to source treated water from the existing water treatment plants, subproject proposals do not include source or treatment infrastructure. The subproject will essentially tap treated water from the existing water mains carrying water from the treatment plants, and supply to the subproject areas. Project implementation arrangements. The Municipal Administration and Water Supply Department (MAWS) of Government of Tamil Nadu acting through the Tamil Nadu Urban Infrastructure Financial Services Limited (TNUIFSL) is the state-level executing agency. A program management unit (PMU) will be established in TNUIFSL headed by a Project Director and Deputy Project Director (senior official from CMWSSB), and comprising dedicated full-time ii staff from TNUIFSL for overall project and financial management. Chennai Metropolitan Water Supply and Sewerage Board (CMWSSB) is the project implementing agency (PIA) for this subproject. A program implementation unit (PIU) will be established in CMWSSB headed by a Chief Engineer and comprising dedicated full-time staff of the CMWSSB for day-to-day implementation of the subproject. PIU is assisted by Construction Management and Supervision Consultant (CMSC) in implementation. Environmental and social safeguards (ESS) managers in PMU/TNUIFSL will coordinate all the safeguard related activities of the subproject and will ensure the compliance with EMP and environmental assessment and review framework (EARF). Environmental Specialist of the CMSC will assist PIU in implementation of subproject in compliance with EMP and EARF, and will carry out all necessary tasks. Screening and Assessment of Potential Impacts. ADB requires the consideration of environmental issues in all aspects of the Bank’s operations, and the requirements for environmental assessment are described in ADB’s Safeguard Policy Statement (SPS), 2009. As per the Government of India Environmental Impact Assessment (EIA) Notification, 2006, this subproject do not require EIA study or environmental clearance. The potential environmental impacts of the subproject have been assessed