DOCUMENT OF THE WORLD BANK FOR OFFICIAL USE ONLY Public Disclosure Authorized INDIA: Maharashtra Rural Water Supply and Sanitation Program (Program-for-Results) 2014-2020 Environmental and Social Systems Assessment (ESSA) Public Disclosure Authorized FINAL January 2014 Public Disclosure Authorized Prepared by South Asia Sustainable Development Unit The World Bank South Asia Region Public Disclosure Authorized Environmental and Socia/ Systems Assessment 2013 Table of Contents Environmental and Social Systems Assessment ...................................................................................... 1 Executive Summary ................................................................................................................................... 1 1. Background ................................................................................................................................... 10 1.1 The Program .......................................................................................................................................................... I 0 1.2. Program Development Objective ......................................................................................................................... !! 1.3. Key Program activities and Boundaries of Program support ............................................................................... !! 1.4 Purpose of the ESSA ............................................................................................................................................. 13 1.5 Methodology of the ESSA .................................................................................................................................... 14 2. Details on Program Activities, Institutions and their Experience ............................................ 16 2.1 Details of physical investments ............................................................................................................................. 16 2.2 Key Implementing Agencies and Partners ............................................................................................................ 17 2.2.1. Institutional Framework and Program Implementation ..................................................................................... l8 2.3 Description of Borrower's Past Experience in the Sector ..................................................................................... 20 3. Potential Environmental and Social Benefits, Risks and Impacts of the Program ................ 21 3. I Environmental Benefits, Risks and lmpacts .......................................................................................................... 21 3.2 Social Benefits, Risks and Impacts ....................................................................................................................... 22 4. Description of the Program Environmental and Social Management System ....................... 23 4.1 Policy and Legal Framework ................................................................................................................................ 23 4. I .I Environmental Policy and Legal Framework 23 4.1.2 Social Policy and Legal Framework 25 4.2 Key Institutional Responsibilities as relates to Environmental and Social Systems ............................................. 27 4.3 State's Environment and Social Management Procedures for Rural WSS ........................................................... 32 4.3.1 State's Environment Management Procedures for Rural WSS 32 4.3 .I. I Procedures for Strengthening Source Sustainability 32 4.3.1.2 Procedures for Ensuring Water Quality 33 4.3.1.3 Procedures Concerning Natural and Cultural Heritage Sites 33 4.3.1.4 Procedures for Scheme-specific Environmental Management 34 4.3.2 State's Social Management Procedures for Rural WSS 34 4.3.2.1 Management of land requirement 34 4.3.2.2 Systems for promotion of Participation, Inclusion and Social Accountability 35 4.3.2.3 Systems for grievances redress 36 4.4 Assessment of Program System Consistency with Core Principles of OP 9.00 .................................................... 36 5. Program Capacity and Performance-Assessment of Adequacy and Identification of Gaps 41 5.1 Performance of implementing agencies with regard to provisions of legal and regulatory framework ............... .41 5.1.1 Performance with regard to legal and regulatory framework on environmental aspects 41 5.1.2 Performance with regard to legal and regulatory framework on social aspects 42 5.2 Adequacy of institutional organization and capacity ........................................................................................... .43 5.2.1 Adequacy of institutional organization and capacity on environmental aspects under the Program 43 5.2.2 Adequacy of institutional organization and capacity on social aspects 44 6. Actions to Address Identified Risks and Gaps ........................................................................... 46 6.1 Actions to Address Identified Environmental Risks and Gaps ............................................................................. 46 6.1. I Exclusion of High Risk Activities from the Program 46 6.1.2 Program Action Plan 48 6.1.3 Implementation of the Program Action Plan- Environmental 48 6.1.3 .I Implement strengthened Environmental Management Rules and Procedures for the Program 48 6.1.3.2 Capacity building of sector institutions and PR!s on environmental management 49 6.2 Actions to Address Identified Social Risks and Gaps ........................................................................................... 51 6.2.1 Program Action Plan 51 Environmental and Social Systems Assessment 2013 ii 6.2.2 Implementation of the Program Action Plan- Social 51 6.2.2.1 Implement strengthened Social Management Rules and Procedures for the Program 51 6.2.2.2 Capacity building of sector institutions and PRis on social management 52 6.2.2.3 PAP Implementation 53 Annex I: Public Consultation Reports ................................................................................................ , ....................... 55 Annex 2: Environmental and Social Risks and Mitigation ......................................................................................... 71 Annex 3: List of Environmental Hotspots ................................................................................................................... 79 Annex 4: Options for Land Procurement .................................................................................................................... 84 Annex 5: District and Village Selection Criteria ......................................................................................................... 88 Annex 6: External Environmental Audit Objectives ................................................................................................... 91 Environmental and Social Systems Assessment 2013 iii The Maharashtra Rural Water Supply and Sanitation Program Environmental and Social Systems Assessment Executive Summary 1. The PforR Program 1. The Government of Maharashtra (GoM) has fully aligned its state rural water supply and sanitation (RWSS) programs with the Government of India's National Rural Drinking Water Program (NRDWP) for water supply, and Nirmal Bharat Abhiyan (NBA) for sanitation. The overall objective of GoM's RWSS program, spanning over the next 10 years, is to increase access to safe drinking water and sanitation services to rural communities at an affordable cost and in an environmentally sustainable manner. The proposed PforR Program focuses on certain critical areas within the NRDWP in Maharashtra: i) capacity building for planning and monitoring across the State, and ii) testing and demonstrating feasible methods of sustainable service delivery to peri-urban areas, and in water-stressed and water-quality affected areas in selected representative districts across Maharashtra, based on transparent, pre-defined, demand driven selection criteria. The Program will be implemented by the Water Supply and Sanitation Department (WSSD) of GoM. 2. The PforR Program is designed to focus on four Key Result Areas: R1 - Strengthened planning and monitoring in the sector; R2 - Improved capacity for program implementation and sustainability; R3 -Improved access to quality and sustainable water and sanitation services in peri-urban areas; R4- Improved access to safe drinking water in water-stressed and water-quality affected areas. 3. The key Program supported activities are listed below: a) Technical Assistance and Institutional Strengthening (software) extended to the whole of the state. b) Physical Investments (hardware) including water supply and sullage management investments in peri-urban areas, scaling up of sustainable ground water management practices in critically exploited aquifers, improving water service in selected small villages through rehabilitation measures, water quality improvement measures and rain water harvesting measures. The Program will not include large scale regional schemes that are likely to present significant environment and social risks. But, there could be a possibility of including peri-urban villages from more than one Gram Panchayat, in a few cases, when it is technically and financially advantageous. The hardware activities are limited to select districts (at up to 12) in the state. 4. The key implementing agency, WSSD, is supported by Water Supply and Sanitation Support Organization (WSSO), which is the monitoring