Initial Environmental Examination Document stage: Final Project Number: 43253-027 July 2021 INDIA: Karnataka Integrated Urban Water Management Investment Program (Tranche 2) – Improvements for 24x7 Water Supply System – Distribution System for City Municipal Council, Udupi Package No: 02UDP01 Prepared by Karnataka Urban Infrastructure Development and Finance Corporation, Government of Karnataka for the Asian Development Bank. CURRENCY EQUIVALENTS (as of 11 May 2017) Currency unit – Indian rupee (₹) ₹1.00 = $0. 0149 $1.00 = ₹67.090 ABBREVIATIONS ADB – Asian Development Bank ASI – Archaeological Survey of India CTE – consent to establish CTO – consent to operate CMC – City Municipal Council CPHEEO – Central Public Health and Environmental Engineering Organization CPCB – Central Pollution Control Board CRZ – coastal regulation zone EHS – environmental, health and safety EIA – environmental impact assessment EMP – environmental management plan GLSR – ground level service reservoir GRC – grievance redress committee GRM – grievance redress mechanism HDPE – high density polyethylene IEE – initial environmental examination IFC – International Finance Corporation KIUWMIP – Karnataka Integrated Urban Water Management Investment Program KSPCB – Karnataka State Pollution Control Board KUIDFC – Karnataka Urban Infrastructure Development and Finance Corporation MOEFCC – Ministry of Environment, Forest and Climate Change NGO – nongovernment organization OHS – occupational health and safety OHT – overhead tank PIU – program implementation unit PMDCSC – project management, design and construction supervision consultant PMU – program management unit REA – rapid environmental assessment RPMU – regional program management unit SEIAA – State Environmental Impact Assessment Authority SEMP – site environmental management plan SPS – Safeguard Policy Statement ULB – Urban Local Body VHPP – Varahi Hydal Power Project WTP – water treatment plant WEIGHTS AND MEASURES dBA - A-weighted decibel cusec - cubic foot per second m3 - cubic meter C° - degree Celsius dia - diameter ha - hectare kl - kiloliter km - kilometer m - meter µg/m3 - microgram per cubic meter ml - milliliter mm - millimeter MLD - million liters per day km2 - square kilometer NOTE In this report, "$" refers to US dollars. This 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. Your attention is directed to the ‘terms of use’ section on ADB’s website. 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. CONTENTS EXECUTIVE SUMMARY 1 I. INTRODUCTION 5 A. Background 5 B. Background of Initial Environmental Examination 5 II. DESCRIPTION OF THE PROJECT COMPONENTS 6 A. Need for Infrastructure Improvement in Udupi 6 B. Implementation Schedule 51 III. POLICY AND LEGAL FRAMEWORK 52 A. ADB Safeguard Policy Statement, 2009 52 B. Government Law and Policies 53 IV. DESCRIPTION OF THE ENVIRONMENT 58 A. Environmental Profile of Udupi 58 B. Socio Cultural Resources 62 C. Environmental Settings of KIUWMIP Tranche 2 Component Sites 63 V. POTENTIAL ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES 73 A. Introduction 73 B. Pre-Construction Impact 73 C. Design Impact 75 D. Due Diligence of Government-Funded Components 76 E. Construction Impact 78 F. Operational and Maintenance Impacts 87 G. Cumulative Impacts 88 VI. PUBLIC CONSULTATION AND INFORMATION DISCLOSURE 88 A. Project Stakeholders 88 B. Consultation and Disclosure up to Date 89 C. Future Consultation and Disclosure 89 VII. GRIEVANCE REDRESS MECHANISM 90 A. Grievance Redress Committee Composition and Selection of Members 91 VIII. ENVIRONMENTAL MANAGEMENT PLAN 94 A. Environmental Management Plan 94 B. Institutional Arrangements 125 C. Training Needs 131 D. Monitoring and Reporting 133 E. Environmental Management Plan Implementation Cost 133 IX. CONCLUSION AND RECOMMENDATIONS 137 List of APPENDIXES Appendix 1: Rapid Environmental Assessment Checklist Appendix 2: Environmental and Labor Related Legislations In India Appendix 3: Applicable Ambient Air Quality and Noise Standards Appendix 4: Applicable Standards for Discharge of Environmental Pollutants (Effluent) Appendix 5: Applicable Drinking Water Standards Appendix 6: Sample Outline Spoils (Construction Waste) Management Plan Appendix 7: Traffic Management Planning Appendix 8: Urban Local Body’s Resolution for the Preparation of Detailed Project Report for Water Supply Under ADB Assistance Appendix 9: Stakeholder Consultation Meetings at Various Sites in Udupi Appendix 10: Associated project related documents -WTP site Appendix 11: Associated project related documents for use of water from Varahi river from KNNL. Appendix 12: M.D. KUIDFC letter Chief Engineer, KNNL requesting handover of abandoned jack well Appendix 13: Letter from MD, Karnataka Neeravari Nigam (KNN) permitting the use of 41 MLD water from Varahi River to Udupi city Appendix 14: Semi Annual Environmental Monitoring Report Template Appendix 15: Environmental Audit of the Existing Water Treatment Plant in Udupi Appendix 16: Ambient Air Quality and Noise Level Locations Appendix 17: SOP for Health and Safety (Stop spread of COVID -19) Appendix 18: Notification for constitution of GRC 1 I. EXECUTIVE SUMMARY The Asian Development Bank (ADB) funded Karnataka Integrated Urban Water Management Investment Program (KIUWMIP) aims to improve water resource management in urban areas in a holistic and sustainable manner. Investment support will be provided to modernize and expand urban water supply and sanitation while strengthening relevant institutions to enhance efficiency, productivity and sustainability in water use. Udupi 24x7 water supply distribution network subproject is one of the subprojects proposed in Tranche 2. Categorization. ADB requires the consideration of environmental issues in all aspects of the Bank’s operations, and the requirements for environmental assessment are described in its Safeguard Policy Statement (SPS), 2009. The proposed projects are categorized as A, B, C or FI to determine the level of environmental assessment required. Udupi water supply subproject is classified as Environmental Category B as per ADB SPS, 2009 as no significant impacts are envisioned. Accordingly, this initial environmental examination (IEE) report has been prepared. The bulk water supply components proposed under the government funding are essential for successful operation of this package. Thus, due diligence for both ADB and government-funded components have been included in this IEE. Subproject Scope. The subproject formulated under this Investment Program to address gaps in current water supply system. Detailed design of all the subproject components are completed prior to the bidding, and as per the design validation survey the subproject includes the following components: (i) clear water feeder mains of 24.50 kilometer (km) of diameter 100 millimeter (mm) to 355 mm to feed to new overhead tanks (OHT); (ii) 7 OHTs of total storage capacity 6.85 million liters (ML); (iii) distribution network of 271.45 km (previously 321.487 km) (diameter 63 mm to 450 mm); and (iv) replacement of 18737 existing meters (m) and providing new metered house service connections of 17715 for uncovered households. Distribution network pipes will be laid along existing road right-of-way (ROW) and OHTs will be constructed in government-owned lands. Associated Project. (i)To meet additional water demand of Udupi, new water source from river Varahi about 38.5 kms from Udupi is selected. RCC Intake well, RCC Jackwell cum pump house and raw water pipe line for 38.5 Kms are proposed under AMRUT. Work is in progress. (ii) 45 MLD WTP work near Halady under State fund is under design submission phase. IEE report was prepared based on the detailed design and included in bid and contract document. The IEE report was updated after award of contract, reflecting monitoring locations, COVID safety protocols, EMP implementation responsibilities and frequency. This IEE is now updated again to reflect the change in project scope/ components location based on design validation carried out by the contractor during implementation. This update involves only a change in length of distribution network from 321.487 km to 271.45 km and all other components/ design/ locations remains same. Implementation Arrangements. Karnataka Urban Infrastructure Development and Finance Corporation (KUIDFC) is the executing agency responsible for overall technical supervision and execution of all subprojects funded under the Investment Program. Implementation activities are overseen by program management unit (PMU) established in its head office at Bangalore in coordination with its regional office (RPMU) in Mangalore. PMU and RPMU are staffed with technical, administrative and financial officials, including safeguards specialists, to manage and monitor program implementation. The implementing agencies are the respective urban local bodies (ULBs). For this package, the implementing agency is City Municipal Council (CMC) of Udupi. A program implementation unit (PIU) has been set up for implementation of day-to-day activities in the field. A consultant team, Project Management, Design and Construction