Environment and Social Due Diligence Report March 2013 IND: India Infrastructure Project Financing Facility II –Farakka Raiganj Highways Ltd. Prepared by India Infrastructure Finance Company Limited for the Asian Development Bank This 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 and Social Safeguards Due Diligence Report India Infrastructure Finance Company Ltd. Environmental and Social Safeguards Due Diligence Report Sub Project: Four Laning from Farakka (Km-295.000) To Raiganj (Km- 398.000) Section of NH-34 in The State of West Bengal under NHDP PHASE- III on Design, Build, Finance, Operate and Transfer (DBFOT) Toll basis. Sub Project Developer - Farakka Raiganj Highways Ltd. March 2013 March 2013 1 Farakka Raiganj Highways Ltd. Environmental and Social Safeguards Due Diligence Report India Infrastructure Finance Company Ltd. Sub Project: Four Laning from Farakka (Km-295.000) To Raiganj (Km-398.000) Section of NH-34 in The State of West Bengal under NHDP PHASE-III on Design, Build, Finance, Operate and Transfer (DBFOT) Toll basis. Environmental and Social Safeguards Due Diligence Report March 2013 2 Farakka Raiganj Highways Ltd. Environmental and Social Safeguards Due Diligence Report India Infrastructure Finance Company Ltd. CONTENTS PROJECT BACKGROUND: ........................................................................................................5 1. SUB-PROJECT TITLE: ..................................................................................................6 2. SUB-PROJECT DESCRIPTION: ...................................................................................6 3. ROAD FURNITURE AND ENHANCEMENT.................................................................. 6 4. CONCESSIONAIRE: ......................................................................................................8 5. EPC CONTRACTORS: ..................................................................................................8 6. INDEPENDENT CONSULTANT: ...................................................................................8 7. LENDER’S ENGINEER: ................................................................................................8 8. STATUS OF SUB-PROJECT IMPLEMENTATION: ......................................................8 9. AVAILABILITY OF EIA/EMP REPORTS: ...................................................................10 10. ENVIRONMENTAL SENSITIVITY AND DUE DILIGENCE: ........................................10 11. CATEGORIZATION OF SUB-PROJECT: ...................................................................11 12. STATUS OF REGULATORY CLEARANCES: ............................................................11 13. PUBLIC CONSULTATION AND INFORMATION DISCLOSURE: ..............................14 14. ANALYSIS OF ALTERNATIVES .................................................................................15 15. ENVIRONMENTAL AND SAFETY CLAUSES IN CONCESSION AGREEMENT: ..... 23 16. ENVIRONMENTAL AND SAFETY CLAUSES IN EPC CONTRACT: ......................... 23 17. EMP IMPLEMENTATION BUDGET: ...........................................................................24 18. ENVIRONMENTAL MANAGEMENT PLAN (EMP) IMPLEMENTATION: ................... 24 19. EPC CONTRACTOR’S EMERGENCY PREPAREDNESS & HSE PLAN: ................. 25 20. ENVIRONMENTAL MONITORING: .............................................................................25 21. INSTITUTIONAL FRAMEWORK FOR EMP IMPLEMENTATION: .............................25 22. SITE VISIT: ..................................................................................................................26 23. CONCLUSIONS AND RECOMMENDATION: .............................................................26 24. MONITORING BY IIFCL: .............................................................................................28 DUE DILIGENCE ON SOCIAL SAFEGUARDS .........................................................................29 25. SOCIAL SAFEGUARDS COMPLIANCE REVIEW: ....................................................30 26. MINIMIZATION OF SOCIAL IMPACTS: ......................................................................30 27. REALIGNEMNT: ..........................................................................................................30 28. SOCIAL INTERACTIONS: ...........................................................................................31 29. LAND ACQUISITION IN THE SUB-PROJECT: .......................................................... 31 30. COMPREHENSIVENESS OF RESETTLEMENT ACTION PLAN: ..............................32 31. RESETTLEMENT IMPACT IN THE SUB-PROJECT: .................................................33 32. COMPENSATION AND ENTITLEMENT: ....................................................................34 33. INSTITUTIONAL ARRANGEMENT TO DEAL WITH LAND ACQUISITION AND RESETTLEMENT: .......................................................................................................34 34. MONITORING AND EVALUATION: ............................................................................35 35. LABOUR HEALTH, SAFETY, HYGIENE OF CONSTRUCTION WORKERS: ........... 35 36. EMPLOYMENT GENERATION AND INCOME RESTORATION: ............................... 35 37. CSR ACTIVITIES UNDERTAKEN: ..............................................................................36 38. SITE VISIT OBSERVATIONS: .....................................................................................37 39. CONCLUSION AND RECOMMENDATIONS: .............................................................37 -------------- ................................................................................................................................... 38 March 2013 3 Farakka Raiganj Highways Ltd. Environmental and Social Safeguards Due Diligence Report India Infrastructure Finance Company Ltd. LIST OF TABLES: Table 1: Project Salient Features………………………………………………………………………………………………………..6 Table 2: Project Financial Progress……………………………………………………………………………………………………8 Table 3: Status of Regulatory Clearances Obtained…………………………………………………………………………..13 Table 4: List of locations and dates of Group Discussions………………………………………………………………….15 Table 5: Details of the links for Kaliachawk & Maldah bypass……………………………………………………………16 Table 6: Comparative Analysis: Environmental Aspect for Kaliachak Bypass………………………………………21 Table 7: Comparative Analysis: Environmental Aspect for Malda Bypass………………………………………….22 Table 8: Status of Land acquisitions …………………………………………………………………………………………………..30 Table: 9 Pending litigation cases related to land acquisition and compensation………………………………..31 Table‐10 Crop Compensation paid………………………………………………………………………………………………….32 Table ‐11: Affected families as per the type of structure…………………………………………………………………32 Table‐ 12: Employment generated during construction stage of the project……………………………………...35 LIST OF FIGURES: Figure 1: Alternative Alignment Option Kaliachak Bypass……………………………………………………………..18 Figure 2: Alternative Alignment Option Malda Bypass…………………………………………………………………..19 Figure 3: Institutional Framework for EMP Implementation…………………………………………………………..28 APPENDICES: APPENDIX‐I‐EIA‐EMP AND RAP REPORT APPENDIX‐II‐ CLEARANCES, CONSENT/ APPROVALS AND PERMITS APPENDIX‐III‐ CONCESSION AGREEMENT APPENDIX‐IV‐ EPC CONTRACT APPENDIX‐V‐ PROJECT ENVIRONMENTAL APPENDIX‐VI‐ EMERGENCY PREPAREDNESS AND RESPONSE MANAGEMENT PLAN PLAN APPENDIX‐VII‐ MONTHLY HSE STATISTICS APPENDIX‐VIII‐ INDEPENDENT ENGINEERS ROAD SAFETY REPORT REPORT & COMPLIENCE REPORT APPENDIX‐IX‐ CSR INITIATIVES PHOTOPLATES: PHOTOPLATE I‐ SITE VISIT PHOTOGRAPHS‐ ENVIRONMNETAL SAFEGUARDS PHOTOPLATE II‐ SITE VISIT PHOTOGRAPHS‐ SOCIAL SAFEGUARDS March 2013 4 Farakka Raiganj Highways Ltd. Environmental and Social Safeguards Due Diligence Report India Infrastructure Finance Company Ltd. PROJECT BACKGROUND: March 2013 5 Farakka Raiganj Highways Ltd. Environmental and Social Safeguards Due Diligence Report India Infrastructure Finance Company Ltd. 1. SUB-PROJECT TITLE: 1. The project includes four laining from Farakka (Km-295.000) to Raiganj (Km-398.000) section of NH-34 in the State of West Bengal under NHDP PHASE-III on Design, Build, Finance, Operate and Transfer (DBFOT) Toll basis. 2. SUB-PROJECT DESCRIPTION: 2. The project road section is a part of National Highway No. 34 (NH-34) and is located in the State of West Bengal. The project corridor starts from existing Chainage km 294.669 of Farakka Barrage and ends at km 397.700 at the start of Raiganj bypass. The scope of the project is mainly widening and strengthening of existing two lanes to four lanes configuration from existing km 294.669 to km 397.700 section of NH-34. The project route passes through the settlements like Kaliachak (km 307.000), Sujapur (near km 315.000), Maldah (near km 328.000) and Itahar (near km 383.000). 3. National Highway Authority of India (NHAI) has awarded the Concession to Farakka Raiganj Highways Ltd. for four-laining of the existing two lane road from Km-295.000 to Km-398.000 section of NH-34 in the State of West Bengal. 4. The proposed widening and strengthening