Earthquake Housing Reconstruction Project Public Disclosure Authorized (EHRP) Public Disclosure Authorized ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK (ESMF) First Revision- October 2018 Second Revision- December 2019 Public Disclosure Authorized Third Revision - April, 2020 Public Disclosure Authorized Government of Nepal National Reconstruction Authority Singhadarbar, Kathmandu EXECUTIVE SUMMARY The Environmental and Social Management Framework (ESMF) is prepared for the Emergency Housing Reconstruction Project (EHRP) which describes the principles and procedures for addressing environmental and social impacts associated with the project in accordance with GoN laws and regulations, and World Bank’s safeguards policies. The ESMF is revised on the basis of experience of safeguard activities implemented in 14 districts and considering the provision of MDTF. The revised ESMF will be applicable for 32 earthquake affected districts including the MDTF activities. The Project The main objective of the project is to restore earthquake-affected houses with multi-hazard resistant core housing units in targeted areas and to enhance the government's ability to improve long-term disaster resilience. Component 1 (Improved Housing Reconstruction) will support owner-driven housing reconstruction program that will provide housing grants (approximately US$3,000 per household) for the construction of approximately 240,880 core housing units, disbursed in multiple tranches, subject to the satisfactory achievement of pre-identified milestones and compliance standards. WB and GoN has jointly prepared the ESMF for the effective implementation of EHRP. This document presents the revised Environmental and Social Management Framework (ESMF) for the Earthquake Housing Reconstruction Project (EHRP) considering the limited environmental and social impacts, the emergency nature of the project, and difficulties due to the complicated safeguard arrangements, the original ESMF has been revised to make it proportionate to environment and social risks and impacts. This revised ESMF (third version) takes into account the changing scope of works under MDTF, and experiences from implementing the first revised ESMF in the eleven project districts1. The objective of this revised ESMF is to serve as a practical tool during project formulation, design, planning, implementation and monitoring, to ensure that environmental and social aspects are duly considered in the planning and implementation process. The ESMF is a ‘live document’, enabling updates and revisions whenever required. Any unexpected circumstances and/or changes in project design is assessed, and appropriate management and mitigation measures are incorporated. This revised ESMF covers changes or modifications in safeguard procedures introduced in the original ESMF and any legal, regulatory and/or institutional regime changes. A project level Environmental and Social Management Plan (ESMP)is prepared as a part of this ESMF which requires review, verification and validation through the local level consultation and approval from local body i.e. Municipality and Rural Municipality and preparation of a separate site specific ESMP for special cases on environmental and social issues. The 2nd revision of the original ESMF was completed in mutual agreement between the World Bank and the GoN covering the additional 18 districts and already disclosed in the NRA Website. 1Dolakha, Dhading, Nuwakot, Rasuwa, Kavrepalanchowk, Sindhupalchowk, Ramechhap, Okhaldhunga, Sindhuli, Makawanpur, Gorkha The 3rd revision of ESMF is done to incorporate the provision of MDTF from the district level stakeholder consultation. The consultation was done in four districts (Lamjung, Makawanpur, Syangja, and Khotang). The initial plan was to conduct in the five districts - Lamjung, Makawanpur, Syangja, Khotang, and Rasuwa but suddenly consultation of Rasuwa district was postponed due to LOCKDOWN of COVID-19. The joint agreed action meeting of WB, PMU and CLPIU-GMaLI decided to finalize the ESMF on the basis of feedback of four districts. The feedbacks of stakeholders are included in the revised ESMF. The revised ESMF is disclosed in the NRA and CLPIU website with executive summary in Nepali version. The revised ESMF is cleared by the World Bank and will be disclosed in the World Bank Info Shop too. Environmental and Socio-economic Baseline and Issues Environmental baseline: The 32 project districts are in the mountain and mid-hills of Nepal that are generally considered fragile and susceptible to landslides and soil erosions. The total area of forest in 32 earthquakes affected district is 2,459,401.14 Ha and most of these are managed by a community. The construction of housing units in 32 districts based on different available housing alternative design requires about 1.07 million cubic meters of timber for construction of windowpane, gate, roof and other necessary features. Approximately 4 million cubic meters of stone, and 8.8 million cubic meters of sand will additionally require for the reconstruction of 240,880 damaged houses after deducting the re-useable quantity in project districts. It was found that nearly 55% of stone and 35% of wood frame (timber) of total debris collected can be re-used in house reconstruction. Socioeconomic baseline: According to the survey of 2015, total 903,876 HHs are affected by earthquake in 32 districts. According to the 2011 census, the total households is 2,287,719 and total population is 9,948,892 (52.09 percent are females) in the 32 project districts. Approximately 41% of the population is indigenous people (known as Adivasi Janajati in Nepal), and there is also a significant presence of other marginalized groups including Dalits that constitute 6% of the population and 21% of the households are female-headed. Environmental Impacts: The positive environmental impacts include mechanisms for building back better (e.g., earthquake resistant house and awareness of improved sanitation and indoor air quality) and provisions for promotion of environmental good practices at household as well as at community/settlement level. Some adverse environmental impacts are likely but they are anticipated to be site-specific and moderate. Some of these include: increased demand for timber during house construction which will increase pressure on the forests and forest resources (including chance of timber export from one district to another as government relax timber transportation for the earthquake districts), harvesting of non-timber forest products for sustenance and income generation, and chances of encroachment on protected areas from nearby earthquake affected settlements. There is also increased risk of landslides and soil erosion due to activities such as quarrying stones, excavation, changes in drainage pattern. The demand of drinking water supply system may be increased in project areas because of the reconstruction work. To address these concerns, the project will: promote re-use of already felled logs, including those affected by the earthquake as well as salvaged timber, stones, clay, from demolished buildings; good practices at the settlement level such as afforestation, community forest, renewable energy, etc.; identification of safe sites for stone quarry, sand/ gravel/ clay extraction by qualified persons; safe storage of material, proper management of debris, safe collection and disposal of wastes and hazardous material. Further, the project will provide training and awareness relating to safe use of construction equipment and associated safety measures at the worksite. Social Risks/Impacts: The project is expected to lead to primarily positive benefits. However, few possible risks include: resettlement of households affected by the earthquake; absence of support provisions for landless/vulnerable groups; lack/limited awareness of the housing grants; exclusion based on the eligibility criteria established; inadequate consultations; limited availability of land for resettlement and/or increase in land prices making it unaffordable for resettlement planning; exclusion of households/individuals living in squatter settlements, Guthi land, monasteries, rented land and those without appropriate papers (e.g., citizen certificate, land titles, etc); omission of households where the household head is a migrant/absentee, from project support; and livelihood impact on forest-dependent communities, including indigenous groups. To address these negative impacts, the following measures will be adopted: preference will be given for building houses in-situ; support provided to the landless through Government’s resettlement plan; culturally sensitive and effective consultation strategy; extensive information and awareness campaigns; robust grievance redress mechanism; and Socio-technical assistance team is mobilized to support the vulnerable households. Policy Framework on Environmental and Social Issues The GoN’s policies and regulations applicable to the project include: (i) land acquisition, compensation and resettlement regulations; (ii) laws relating to indigenous peoples and other vulnerable communities; (ii) guidelines for promoting good governance, social accountability, and communication and consultation; and (iv) legislative measures and directives on social and environmental protection, natural disaster management, and conservation of forest and wildlife. Similarly, NRA has developed various policies and guidelines related to earthquake. The World Bank policies applicable in the project are