Initial Environmental Assessment Document Draft Initial Environmental Examination Document Stage: Draft for Consultation Project Number: June 2010 IND: Innovative Financing Option for Municipal Infrastructure Sector: Nagpur Water Supply Project (Pench-IV)-Distribution Components Prepared by Nagpur Municipal Corporation, Government of Maharashtra The 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. CONTENTS Page I. INTRODUCTION 1 A. Identification of Project and Project Proponent 1 B. Purpose of Initial Environmental Examination (IEE) Study 1 C. Indian National Laws on Environment 2 D. Approach and Methodology 3 II. PROJECT DESCRIPTION 4 A. Type, Category and Need 4 III. DESCRIPTION OF THE ENVIRONMENT 10 A. Physical resources 10 B. Infrastructure 20 C. Socio Economic Resources 22 IV. POTENTIAL ENVIRONMENT IMPACT AND MITIGATION MEASURES 27 A. Screening Out of Areas of No Significant Impact 27 B. Methodology 28 C. Mitigation Measures 36 V. INSTITUTIONAL REQUIREMENTS AND ENVIRONMENTAL MONITORING PLAN 51 A. Reporting 53 B. Grievance Redress Mechanism 53 VI. PUBLIC CONSULTATION AND INFORMATION DISCLOSURE 53 VII. CONCLUSION 54 APPENDICES ABBREVIATIONS ADB - Asian Development Bank Avg - average BPT - Break Pressure Tank CI - Cast Iron dBA - Decibels (equivalent human sensitive frequency ) EC - Environmental Clearance EIA - Environment Impact Assessment EMP - Environment Management Plan EPA - Environment Protection Act ESR - Elevated storage reservoir GSR - Ground storage reservoir JNNURM - Jawaharlal Nehru National Urban Renewal Mission km - kilometer Leq - Equivalent sound (noise) pressure MLD - million liters per day Mm3 - million cubic meters MoEF - Ministry of Environment & Forests MS - Mild Steel NMC - Nagpur Municipal Corporation RSPM - respirable particulate matter SPM - suspended particulate matter SPV - Special Purpose Vehicle WTP - Water Treatment Plant 1 I. INTRODUCTION A. Identification of Project and Project Proponent 1. Nagpur is the second capital of Maharashtra State with a population of 2.05 million. Nagpur Municipal Corporation (NMC) was constituted in 1951 under the City Nagpur Corporation Act, 1948 (CNC Act), Based on the Act, NMC has the responsibility of providing basic urban services including water supply, sewerage, waste management etc. At present NMC is providing 470 million liters per day (MLD) of treated water to Nagpur City from Kanhan River Pench Projects-I to III, and a small part from Gorewada Tank. 2. NMC intends to augment Nagpur City water supply by 115 MLD by implementing Pench Phase – III, Stage – II (Pench-IV). This would largely meet the demand of Nagpur City up to 2011. NMC will create a special purpose vehicle (SPV) for this purpose which is sponsored and fully owned by NMC. Asian Development Bank (ADB) is non-sovereign lending for NMC to partially fund capital expenditure in the water supply sector. NMC will purchase water from the SPV on a cost recovery basis including debt servicing costs. B. Purpose of Initial Environmental Examination (IEE) Study 3. ADB’s Environmental policy requires that environmental considerations be incorporated in ADB’s operations. Under this policy, ADB requires environmental assessment of all Project loans, financial intermediation loans, program loans, sector development program loans, and private sector investment operations. 4. Indian law and ADB policy require that the environmental impacts of development projects are identified and assessed as part of the planning and design process, and that action is taken to reduce those impacts to acceptable levels. This is done through the environmental assessment process, which has become an integral part of lending operations and project development and implementation worldwide. 5. The purpose of the IEE study is to: • identify the potential environmental impacts as a result of proposed works on biological, physical, socio-economic and cultural environment of the Project area, and carry out their rapid assessment • recommend practical and site specific environmental mitigation and enhancement measures • prepare and implement an Environmental Monitoring Plan (EMP) for the sub-project, and • Recommend whether the IEE is sufficient for the proposed Project or whether EIA is required as a result of the environmental issues that may arise due to the Project Implementation. 2 6. As per ADB’s latest Safeguard Policy Statement on Environment (SPS dated June 2009 effective January 2010), ADB classifies the projects for environmental assessment in the following manner: i. Category A - A proposed project is classified as category A if it is likely to have significant adverse environmental impacts that are irreversible, diverse, or unprecedented. These impacts may affect an area larger than the sites or facilities subject to physical works. An environmental impact assessment (EIA), including an environmental management plan (EMP), is required. ii. Category B - A proposed project is classified as category B if its potential adverse environmental impacts are less adverse than those of category A projects. These impacts are site-specific, few if any of them are irreversible, and in most cases mitigation measures can be designed more readily than for category A projects. An initial environmental examination (lEE), including an EMP, is required. iii. Category C - A proposed project is classified as category C if it is likely to have minimal or no adverse environmental impacts. An EIA or lEE is not required, although environmental implications need to be reviewed. iv. Category FI - A proposed project is classified as category FI if it involves the investment of ADS funds to, or through, a financial intermediary. 7. As per the above requirements, the Nagpur Water Supply Project is categorized as ‘B’. The category for this project is characterized by the most environmentally sensitive components such as adverse impacts due to construction activities and; ambient air quality and fuel consumption that are expected to be positively impacted. C. Indian National Laws on Environment 8. The Government of India EIA Notification of September 2006 and amendments thereof in 2009 (replacing the EIA Notification of 1994), sets out the requirement for environmental assessment. It states that Environmental Clearance (EC) is required for specified activities/projects, and this must be obtained before any construction work or land preparation (except land acquisition) may commence. Projects are categorised as A or B depending on the sector and scale of the Project provided in Schedule I of the notification. 9. Category A projects requires EC from the national Ministry of Environment and Forests (MoEF). The proponent is required to provide preliminary details of the Project in the form of a Notification, after which an Expert Appraisal Committee (EAC) of the MoEF prepares comprehensive Terms of Reference (ToR) for the EIA study, which are finalized within 60 days. On completion of the study and review of the report by the EAC, MoEF considers the recommendation of the EAC and provides the EC if appropriate. 10. Category B projects require environmental clearance from the State Environment Impact Assessment Authority (SEIAA). The State level EAC categorises the Project as either B1 (requiring EIA study) or B2 (no EIA study), and prepares ToR for B1 projects within 60 days. On completion of the study and review of the report by the EAC, the SEIAA issues the EC based on the EAC recommendation. The Notification also provides that any project or activity classified as category B will be treated as category A if it is located in whole or in part within 10 km from the 3 boundary of protected areas, critically polluted areas, notified eco-sensitive areas and inter- state, or international boundaries. 11. As per Schedule I of the EIA Notification, water supply projects do not require a formal EIA or EC by the state or the centre. Hence the national law on EIA is not applicable to the proposed project that this IEE addresses. D. Approach and Methodology 12. The IEE Report is based on primary data generated through monitoring and analysis of environmental parameters affecting the environment and relevant data collected from various government and consent departments. Based on the result of the analysis of air, water, and land, the status of the environment existing throughout the stretch of the proposed water supply Project has been established. An assessment of related environmental impacts has been carried out using matrices and is presented in this document based on the final scope of the Project. The IEE has been prepared in accordance with ADB’s Environmental Policy (2002), particularly Operations Manual Section F1 in Environmental Considerations in ADB Operations (2003), and compliance with the Government of India's environmental assessment requirements and state regulations on environment. The IEE also proposes an EMP, and following ADB guidelines, to reflect overall IEE findings and recommendations. 13. The IEE report also covers where applicable, a reference source/secondary data on the physical and natural environment, which has been researched and presented through analysis of environmental trends, evaluation of the importance of the environmental assets and assessment of their condition and vulnerability, existing utilities and infrastructure, etc. through various agencies/departments. 14.