Updated Initial Environmental Examination Project number: 35173-013 July 2015 NEP: Third Small Towns Water Supply and Sanitation Sector Project —Mahendranagar (Kanchanpur District) Prepared by ITECO Nepal (P) Ltd., SILT Consultants (P) Ltd., and Unique Engineering Consultancy (P) Ltd. for the Government of Nepal and the Asian Development Bank. This revised initial environmental examination 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. Government of Nepal Ministry of Water Supply and Sanitation Department of Water Supply and Sewerage Small Towns Water Supply and Sanitation Sector Project (STWSSSP) Project Management Office (PMO) Panipokhari, Maharajgunj, Kathmandu, Nepal Enhance Functionality in Small Towns Water Supply and Sanitation Sector Project (STWSSSP) UPDATED INITIAL ENVIRONMENTAL EXAMINATION REPORT (IEE) for Mahendranagar Small Towns Water Supply and Sanitation Sector Project Kanchanpur District Kathmandu, July 2015 Submitted by: Joint Venture in Between ITECO Nepal (P) Ltd. SILT Consultants (P) Ltd. Unique Engineering P. O. Box 2147 P.O. Box 2724 Consultancy (P) Ltd. Ratopul, Gaushala, Kathmandu, Nepal Min Bhawan, Kathmandu, Nepal P. O. Box 3522, Jwagal-10, Lalitpur, Nepal Tel: ++977-1-44 87 598, 44 75139 Tel: ++977-1- 46 21 764 (Hunting Line), Tel: ++977-1-55 49 332, 55 29 896 Fax: ++977-1-44 73 573 Fax : ++ 977-1- 46 22 298 Fax: ++977-1-55 49 332 E-mail: [email protected], [email protected] E-mail: [email protected] E-mail: [email protected] Website: www.silt.com.np Website: www.iteconepal.com Website: www.unecnepal.com.np UPDATED IEE OF SMALL TOWN WATER SUPPLY REHABILITATION SUB-PROJECT MAHENDRANAGAR, KANCHANPUR Table of Contents EXECUTIVE SUMMARY ....................................................................................................................................... 1. INTRODUCTION ....................................................................................................................................... 1 1.1 Background .................................................................................................................................................... 1 1.2 Objectives of IEE ........................................................................................................................................... 1 1.3 Rational of IEE Requirement ......................................................................................................................... 1 2. POLICY, LEGAL & ADMINISTRATIVE FRAMEWORK ........................................................................... 2 2.1 ADB Policy ..................................................................................................................................................... 2 2.2 ADB Safeguards policy .................................................................................................................................. 2 2.3 Nepal’s Environmental Policy and Legal Framework ..................................................................................... 5 3. ANALYSIS OF ALTERNATIVES .............................................................................................................10 3.1 Alternatives considered in the approved IEE report 2006 ............................................................................ 10 3.1.1 Without-subproject’ or ‘do-nothing’ alternative ............................................................................... 10 3.1.2 With subproject’ alternative............................................................................................................ 10 3.2 Alternatives for the Updated IEE .................................................................................................................. 10 4. DESCRIPTION OF SUBPROJECT ..........................................................................................................11 4.1 The Study Area ............................................................................................................................................ 11 4.2 Existing Condition and Need for the Subproject .......................................................................................... 13 4.2.1 General Information ....................................................................................................................... 13 4.2.2 Technical Information .................................................................................................................... 13 4.2.3 Socio- Economic Information ......................................................................................................... 13 4.2.4 Financial Information ..................................................................................................................... 14 4.3 Sub Project Construction Schedule ............................................................................................................. 14 5. DESCRIPTION OF THE ENVIRONMENT ...............................................................................................16 5.1 Physical Profile ............................................................................................................................................ 16 5.1.1 Topography ................................................................................................................................... 16 5.1.2 Geology and Soils ......................................................................................................................... 16 5.1.3 Climate .......................................................................................................................................... 16 5.1.4 Surface and Groundwater.............................................................................................................. 16 5.1.5 Water Quality Analysis................................................................................................................... 16 5.2 Ecological Profile ......................................................................................................................................... 17 5.2.1 Flora .............................................................................................................................................. 17 5.2.2 Fauna ............................................................................................................................................ 17 5.2.3 Protected Areas ............................................................................................................................. 17 5.3 Socio Economic Condition ........................................................................................................................... 17 5.3.1 Population, Communities and Occupation ..................................................................................... 17 5.3.2 Health and Sanitation .................................................................................................................... 17 5.3.4 Economic Characteristics .............................................................................................................. 18 5.3.5 Infrastructure Facilities................................................................................................................... 18 5.3.6 Land Use Planning ........................................................................................................................ 18 5.3.7 Quality of Life Values ..................................................................................................................... 18 5.4 Resettlement, Relocation and Compensation Issue .................................................................................... 19 6. DESCRIPTION OF IMPACT ASSESSMENT ...........................................................................................20 6.1 Physical Environment .................................................................................................................................. 20 6.1.1 Impact on Land Use Pattern .......................................................................................................... 20 6.1.2 Flooding and Stagnant Water Problem .......................................................................................... 20 ITECO-SILT-UNEC JV II |P A G E UPDATED IEE OF SMALL TOWN WATER SUPPLY REHABILITATION SUB-PROJECT MAHENDRANAGAR, KANCHANPUR 6.1.3 Impact on Water/Land Quality ....................................................................................................... 20 6.1.4 Impacts of Sediments and Disinfecting Chemicals ........................................................................ 20 6.1.5 Water Volume/Quality .................................................................................................................... 20 6.1.6 Impacts on Air Quality.................................................................................................................... 20 6.1.7 Impacts on Acoustic Environment ................................................................................................