PRO-POOR URBAN REGENERATION PILOT PROJECT

Lalitpur Sub-Metropolitan City Lalitpur, Nepal

Environmental and Social Management Framework

Draft, August 30, 2013

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LIST OF ACRONYMS

BP Bank Procedure

CBO Community Based Organization

CBS Central Bureau of Statistics

DDC District Development Committee

DPR Detail Project Report

EA Environmental Assessment

EIA Environmental Impact Assessment

EMP Environmental Management Plan

EPA/EPR Environmental Protection Act/Environmental Protection Regulations

ESMF Environmental and Social Management Framework

GoN Government of Nepal

IEE Initial Environmental Examination

ILO International Labor Organization

IP-VCDF Indigenous Peoples-Vulnerable Community Development Framework

IP-VCDP Indigenous Peoples-Vulnerable Community Development Plan

LSMC Lalitpur Sub–metropolitan City

NGO Non-Government Organization

OP Operational Policies

PAP Project Affected Person

PMT Project Management Team

POM Project Operational Manual

PSC Project Support Consultant

PURPPURP Pro Poor Urban Regeneration Pilot

RAP Resettlement Action Plan

VDC Village Development Committee

VDCP Vulnerable Community Development Plan

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TABLE OF CONTENT

CHAPTER I: INTRODUCTION .......................................................................................................................... 1

1.1 BACKGROUND ...................................................................................................................................................... 1

1.2 SECTORAL AND INSTITUTIONAL CONTEXT ........................................................................................................ 2

1.3 PROJECT DESCRIPTION ...................................................................................................................................... 3

1.3.1 Broader Project Objectives ......................................................................................................... 3

1.3.2 Project Development Objectives (PDO) ..................................................................................... 3

1.3.3 Project Beneficiaries ................................................................................................................... 3

1.3.4 Project Components ................................................................................................................... 4

1.3.4.1 Component 1: Participatory Action Plan for Pro-poor Urban Regeneration ........................ 4

1.3.4.2 Component 2: Grant Facility for Pro-poor Urban Regeneration .......................................... 5

1.3.4.3 Component 3: Community Awareness and Local Capacity Building for Pro-poor Urban

Regeneration. ....................................................................................................................... 7

1.3.4.4 Component 4: Participatory Monitoring & Evaluation and Knowledge Dissemination,

Project Management and Administration ............................................................................. 7

1.4 PROJECT INSTITUTIONAL AND IMPLEMENTATION ARRANGEMENT ................................................................. 8

1.5 TYPE AND NATURE OF CIVIL WORKS SUPPORTED UNDER PURPPURP .................................................. 11

1.6 ACTIVITIES EXCLUDED FROM PURPPURP ................................................................................................... 12

1.7 NEED FOR ENVIRONMENT AND SOCIAL MANAGEMENT FRAMEWORK ......................................................... 12

1.8 PROCESS ADOPTED FOR PREPARING THE ESMF ........................................................................................ 13

1.9 PURPOSE AND OBJECTIVES OF THE ESMF ................................................................................................... 14

1.10 REVISION/MODIFICATION OF THE ESMF ........................................................................................................ 15

1.11 LIMITATIONS OF THE ESMF ............................................................................................................................. 15

CHAPTER II: OVERVIEW OF THE PROJECT AREA ..................................................................................... 16

2.1 GEOGRAPHICAL LOCATION .............................................................................................................................. 16

2.1.1 Geographical Boundaries ......................................................................................................... 16

2.1.2 Population ................................................................................................................................. 17

2.1.2.1 Population Distribution ......................................................................................................... 17

2.1.2.2 Ward Wise Population of LSMC .......................................................................................... 17

2.1.3 Literacy...................................................................................................................................... 17

2.1.4 Employment .............................................................................................................................. 17

2.1.5 Settlement Pattern .................................................................................................................... 18

2.1.6 Income ...................................................................................................................................... 18

2.1.7 Economy ................................................................................................................................... 18

2.1.8 Infrastructures ........................................................................................................................... 19

2.1.8.1 Water Supply and Sanitation ............................................................................................. 19

2.1.8.2 Housing Pattern ................................................................................................................. 19

2.1.8.3 Cultural and Architecturally Important Places in Project Wards ........................................ 20

CHAPTER III: REGULATORY AND LEGAL FRAMEWORK .......................................................................... 21

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3.1 KEY APPLICABLE NATIONAL ENVIRONMENTAL LAWS AND REGULATIONS ........................................... 21

NATIONAL BUILDING CODE OF NEPAL, 1993(2050 BS) .................................................................... 22

3.2 KEY APPLICABLE NATIONAL SOCIAL LAWS AND REGULATIONS .................................................................. 24

3.3 APPLICABLE WORLD BANK POLICIES ............................................................................................................. 25

3.4 ENVIRONMENTAL ASSESSMENT (OP/BP 4.01) ............................................................................................. 26

3.5 PHYSICAL CULTURAL RESOURCES (OP/BP 4.11) ........................................................................................ 26

3.6 INDIGENOUS PEOPLE (OP/BP 4.10)............................................................................................................... 27

3.7 INVOLUNTARY RESETTLEMENT (OP/BP 4.12) .............................................................................................. 28

CHAPTER IV: POTENTIAL ENVIRONMENTAL AND SOCIAL IMPACTS AND THEIR MANAGEMENT

.................................................................................................................................................................................... 30

4.1 LIKELY BENEFICIAL IMPACTS ........................................................................................................................... 30

4.2 LIKELY ADVERSE IMPACTS ............................................................................................................................... 30

4.2.1 Environmental ........................................................................................................................... 30

4.2.2 Social ........................................................................................................................................ 31

4.3 GENERIC MITIGATION MEASURES FOR EACH IDENTIFIED POTENTIAL IMPACTS ........................................ 31

4.3.1 Physical Environment ............................................................................................................... 32

4.3.2 Biological Environment ............................................................................................................. 32

4.3.3 Socio-economic,Cultural, and Archaeological Environment .................................................... 33

CHAPTER V: ENVIRONMENTAL AND SOCIAL SCREENING AND MANAGEMENT ............................. 35

5.1 ENVIRONMENTAL& SOCIAL SCREENING ......................................................................................................... 35

5.2 Safeguard Categorization of Municipal Investments and Sub-grants ...................................... 35

5.2.1 CategoryImunicipal investments and sub-grant interventions ................................................. 36

5.2.2 Category II municipal investments and sub-grant interventions ............................................. 37

5.2.3 Category III municipal investments and sub-grant interventions ............................................ 38

5.2.4 The Roles and Responsibilities of the World Bank .................................................................. 39

5.3 MANAGEMENT OF SOCIAL SAFEGUARDS ........................................................................................................ 39

5.3.1 Social Screening (Including Resettlement Policy Framework, Indigenous People (IP) and

Vulnerable Community Development Plan, and Gender Development Framework) .............. 39

5.3.2 Indigenous Peoples and Vulnerable Communities Development Framework(IP-VCDF) ........ 43

5.3.2.1 Relevant Policies on Indigenous People and other Vulnerable Communities .................. 43

5.3.2.2 Screening and Categorization of Impacts on IPs and VCs ............................................... 44

5.3.2.3 Specific Measures to be followed while dealing with Vulnerable Groups ......................... 45

5.3.2.4 Framework for Developing Gender Development Framework .......................................... 46

5.3.2.4.1 Gender Development Framework ................................................................................ 46

5.4 PROCESS FOR MANAGING ENVIRONMENTAL AND SOCIAL IMPACTS ........................................................... 48

CHAPTER VI: INFORMATION AND CONSULTATION FRAMEWORK ....................................................... 51

6.1 INFORMATION AND CONSULTATION FRAMEWORK FOR MUNICIPAL INVESTMENTS AND SUB-GRANTS OF

PURPPURP ..................................................................................................................................................... 51

6.1.1 Identify and Analyze Potential Stakeholders to Understand their Interest and Needs ........... 51

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6.1.2 Engage Stakeholders Systematically Throughout the Design and Implementation Stages .... 51

6.1.3 Inform Stakeholders and Accountability Mechanism ............................................................... 52

6.2 PRESENT STATUS OF CONSULTATIONS COMPLETED AT PURPPURP ...................................................... 52

6.2.1 Consultations during Prefeasibility Study and Preparation of ESMF ....................................... 52

6.2.2 Modes of Future Consultations ................................................................................................. 52

6.3 INFORMATION DISCLOSURE AND DISSEMINATION ......................................................................................... 53

CHAPTER VII: GRIEVANCE REDRESS MECHANISM .................................................................................. 54

CHAPTER VIII: MONITORING AND EVALUATION ........................................................................................ 55

8.1 MONITORING AND EVALUATION ....................................................................................................................... 55

CHAPTER IX: CAPACITY BUILDING................................................................................................................. 56

9.1 TRAINING ............................................................................................................................................................ 56

9.1.1 For Environment and Social Officer of LSMC .......................................................................... 56

9.1.2 For Municipal Staff .................................................................................................................... 56

9.2 TRAINING ON PREPARING COMMUNICATION STRATEGIES ........................................................................... 57

ANNEXES:

Annex 1: Steps and Requirements for IEE Studies and PURP

Annex 2: Project Environmental Management Plan (EMP)

Annex 3: Format for Social Impact Assessment

Annex 4: Involuntary Resettlement Impact Screening & Categorization Form

Annex 5: Environmental Impact Screening & Categorization Form

Annex 6: IPs & Vulnerable Groups Impact Screening & Categorization Form

Annex 7: Outline structure of an IP – Vulnerable Community Development Plan (IP/VDCP)

Annex 8: Public Ward Level Consultations Attendance

Annex 9: Public Ward Level Consultations Findings

Annex 10: Pictorial highlights of ward level interactions

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CHAPTER I: INTRODUCTION

1.1 Background

Nepal is among the poorest countries in the world, with per capita GDP of US$619 (2011 prices) and an

estimated 25 percent of Nepalese falling below the international poverty line (US$1.25 per day). The

country is caught in a cycle of political instability, poverty and economic stagnation, which has resulted in

a mass exodus of the Nepalese productive workforce out of the country. Nepal is also one of the fastest

urbanizing countries in South Asia. The Kathmandu Valley metropolitan region, with a population growth

of about 4 percent per year, is the largest gravity center for migration in Nepal. Increasing numbers of

people are moving to the Kathmandu Valley, where economic opportunities are greatest. The

sustainable development and management of the Valley is thus of strategic importance for unlocking

economic growth and reducing poverty in Nepal. The Kathmandu Valley is also the most important

heritage destination and the gateway for tourism in Nepal. The country’s most widely recognized cultural

asset is the UNESCO Kathmandu Valley World Heritage site, which is composed of seven Protected

Monument Zones, including the Durbar Squares1 situated in the historic cores of the three main cities of

the Kathmandu Valley (Lalitpur, Bhaktapur and Kathmandu).

Lalitpur City2, popularly known as Patan, is one of the main centers of cultural heritage and craft

production in Nepal, and the second largest municipality in the Kathmandu Valley, with a population of

about 227,000 according to the 2011 population census data. Lalitpur City is the oldest of the three main

cities in the valley. Its Durbar Square consists of an extensive number of palaces, temples, shrines,

monuments and daily activities that are a draw for tourists. In 2009-10, 125,000 tourists, equivalent to 21

percent of Nepal’s international tourists, visited the Durbar Square in Lalitpur City.3 The city’s living

culture and handicrafts are also primary elements of Nepal’s national pride and identity. Throughout the

city there are craft workshops and businesses that have been passed down through many generations

along with the master-level skills that give Lalitpur its reputation as the “City of Arts”. Nineteen percent of

Lalitpur City’s residents report that they work in crafts and related trades.4 The city is especially known

for over 100 residence-based workshops of metal workers in the neighborhood of Woku Bahal. They

produce silver jewelry, bronze and copper statues of Hindu and Buddhist deities and architectural details

for traditional buildings.5 In addition, Lalitpur City is famous for its traditional music, dance, drama and

festivals with their colorful costumes, decorated chariots, special foods and blessing ceremonies.

Rapid urbanization, combined with inadequate development control and management, have led to a

deterioration of the urban fabric in the Kathmandu Valley, which is manifested in low rates of job

creation, social segregation and a tangible erosion of cultural identity; increased vulnerability to natural

disasters and an increase in slums and squatter settlements. With the notable exception of Bhaktapur

municipality, the public cultural and historic assets of the Kathmandu Valley have suffered considerable

damage and are losing cultural value, religious significance, and tourism potential. Lalitpur City has not

been spared from these challenges, although its historic core is better maintained than the historic core

of Kathmandu City. Many of the housing units in Lalitpur City now bear a dilapidated look, and the

1 Durbar Squares are the plazas opposite old royal palaces in Nepal.

2 Lalitpur Sub-metropolitan City is the legal name of the municipality.

3 Estimate based on revenue section of the municipality.

4 This is the second largest occupational group in the city, surpassed only by service and sales workers, accounting for 22

percent of local jobs, based on 2001 population census data. 5See “Strengthening Patan as a Crafts Town”. Planning Studio III. Department of Architecture and Urban Planning, IOE,

Pulchowk Campus. 2012.

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neighborhoods surrounding the Durbar Square lack basic physical facilities, including water supply and

sanitation. Lalitpur’s residents face the threat of natural disasters, due to their location in a high-risk

seismic zone.

As in the Kathmandu Valley as a whole, poverty is multidimensional in Lalitpur City and includes social

segregation, discrimination, lack of voice, vulnerability to shocks and poor access to basic infrastructure

and services, such as water and sanitation, health care and education. The poor and vulnerable include

not only the income poor but also low caste and some indigenous communities, ethnic minorities, the

disabled, and women, especially those who are single heads of households. These dimensions of

poverty reinforce disempowerment and exclusion from income generating opportunities. Cultural

industries, such as tourism and handicrafts, still provide significant, but diminishing, livelihood

opportunities in the valley through, e.g., accommodations and handicraft sales. Many of the poorest are

involved in the production of handicrafts and artisans face serious challenges in sustaining their

livelihoods.

1.2 Sectoral and Institutional Context

Reversing the decline of distressed neighborhoods in the historic city cores of the Kathmandu Valley

would require an integrated approach to urban regeneration that involves support for people, places,

businesses and institutions. In the Kathmandu Valley, new development needs to be combined with the

regeneration of the historic city cores to upgrade physical facilities, improve housing and living

conditions, and promote economic revitalization in distressed neighborhoods, while protecting the urban

fabric of historic, cultural and architectural elements. A sustainable urban regeneration approach would

be based on these four pillars: (a) community strengthening and mobilization (people); (b) infrastructure

upgrading, cultural heritage conservation and disaster risk management (places); (c) job creation and

income generation opportunities (businesses); and (d) a successful partnership between the

communities, the local government and the private sector (institutions).

The project would pilot a pro-poor, community-driven approach for the urban regeneration of part of the

historic core of Lalitpur City based on a proper understanding of the local population, social dynamics

and economic conditions. The grant would support pro-poor regeneration activities in distressed

neighborhoods in the historic core of Lalitpur City aiming at: (a) empowering the poorest and most

vulnerable communities, community-based organizations (CBOs) such as the guthis and local NGOs

through community-driven activities; (b) upgrading local infrastructure, conserving the local heritage and

reducing vulnerability to disasters; (c) creating jobs for the poor through cultural industries; and (d)

improving the lines of communication between the municipal government and the poorest and most

vulnerable communities, building local capacity and raising community awareness.

To pilot the new approach, the project would fund a grant facility to improve local services and public

spaces, promote local heritage and develop income-generating activities linked to cultural industries in

distressed neighborhoods of the historic core of Lalitpur City. Lalitpur’s city administration has

demonstrated a strong commitment to poverty alleviation and to the preservation of the city’s built and

living heritage. Lalitpur was the first city in Nepal to undertake a comprehensive poverty profile in 1999

as part of UN-Habitat’s Urban Management Program. The poverty profile led to the creation of an Urban

Poverty Fund, into which the city has contributed through a budgetary allocation. The city collects

entrance fees to the Durbar Square, which are used for its maintenance and offers monetary incentives

to encourage the rehabilitation of private heritage buildings. The city has also supported crafts and living

culture through the development of a heritage trail to draw tourists into the neighborhoods and special

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crafts markets to eliminate the middlemen between producers and buyers. However, a lack of city

capacity and resources has limited these activities and their impact on poverty.

1.3 Project Description

1.3.1 Broader Project Objectives

The project contributes to the high-level objective of reducing poverty and vulnerability in the historic core

of Lalitpur City by improving local services, conserving local heritage and culture, and increasing access

to income-generating opportunities in cultural industries.

1.3.2 Project Development Objectives (PDO)

The PDO is to: (a) contribute to improving the living conditions of poor and vulnerable households in

selected wards of the historic core of Lalitpur City by piloting urban regeneration activities; and (b)

demonstrate the feasibility of an integrated urban regeneration approach to decision-makers in the

Kathmandu Valley.

1.3.3 Project Beneficiaries

The primary beneficiaries are: (a) those individuals directly benefiting from the urban regeneration

initiatives, the awareness raising activities and capacity building programs carried out as part of the pilot;

as well as (b) the municipal officials who will be trained to implement an integrated urban regeneration

approach. The poor and vulnerable, who are the “target beneficiaries” of the pilot, include the income

poor, low caste and indigenous communities, ethnic minorities, the disabled, and women, especially

those who are single heads of households. Some 3,000 are expected to benefit from the urban

regeneration activities.

The project area would include selected neighborhoods in the buffer zone surrounding the Durbar

Square Protected Monument Zone, outside the World Heritage Site (WHS). The project area covers 4

wards. The boundaries of the buffer zone and the four wards that the project covers (i.e. wards 16, 18,

21, and 22) are presented in the map below.

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1.3.4 Project Components

The project would have the following four components:

1.3.4.1 Component 1: Participatory Action Plan for Pro-poor Urban Regeneration

This component would support the preparation of a participatory action plan for pro-poor urban

regeneration in selected wards in the historic core of Lalitpur City. Activities would include:

(i) Social assessment. The social assessment would include a baseline livelihood and needs

assessment to understand the livelihood strategies of households belonging to different income,

gender, social, and ethnicity and caste groups in the project area. The assessment would inform the

identification of the target beneficiaries for the urban regeneration activities. It would also identify

stakeholders, interests, and potential for conflict so as to better ensure the success of the project.

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(ii) Market assessment. The market analysis would: (a) examine the current state of cultural industry

(handicraft and cultural tourism) clusters in Lalitpur City; (b) identify potential demand and market

niches for different cultural heritage sites restoration and related cultural tourism services and

handicrafts; (c) identify gaps and necessary measures for improving local handicrafts products and

cultural tourism services; (d) develop a marketing strategy to increase visibility of the project site

(including possible innovation, such as ICT-based tools, for site interpretation); and (e) propose a

series of practical measures to enhance the flow of benefits to the poor and vulnerable.

(iii) Site management framework. Activities for the preparation of the site management framework

would include: (a) mapping and inventory of all physical cultural heritage assets and notable

intangible heritage (e.g., festivals, handicraft production), and stocktaking of past projects and

activities in the project area; (b) review of the existing management plan for the Durbar Square/buffer

zone and municipal plans; (c) stakeholder analysis and clarification of the mandates, roles and

responsibilities of various stakeholders for the maintenance of the heritage assets.

(iv) Participatory action plan for pro-poor urban regeneration. The participatory action plan would

build on the results of the social and market assessments and site management framework to: (a)

develop a shared vision for the urban regeneration of the project area; (b) identify the priorities for

the urban regeneration activities and the broad areas for which specific calls for proposals would be

issued, including possible earmarking of funds for specific activities (e.g., promotion of intangible

heritage) which may otherwise be neglected; (c) define eligibility criteria for proposals under the grant

facility as well as possible target criteria for specific vulnerable groups (e.g., disabled people,

indigenous groups, dalits). The participatory action plan, and subsequent annual updates, will be

jointly endorsed by the municipality and ward representatives.

The participatory planning would aim at empowering local communities and building coalitions of

stakeholders (e.g., municipal agencies, NGOs, small businesses) and organize them into a cohesive

group for the implementation of the urban regeneration activities. Emphasis would be placed on

establishing and strengthening representation and voice mechanisms for the poor and vulnerable to

facilitate their participation in decision-making. Since the project plans to work with local communities,

social mobilization has been embedded at the core of the project and in the project design. Project

activities emphasize local community involvement in the promotion of cultural tourism to spread its socio-

economic benefits, promote income diversification and alleviate poverty. One of the primary goals of the

pilot is to build the capacity and commitment of the municipality to partner with local community groups

and the business community to implement regeneration activities directly benefiting the poorest and most

vulnerable groups. Building such capacity would significantly contribute to the sustainability of the

results. The involvement of the municipality as the implementing agency for the pilot, the matching

contribution requirement from all the stakeholders participating in urban regeneration activities and the

capacity building for municipal staff are important design features for the sustainability of the outcomes,

beyond the implementation period of the grant. The pilot project would provide capacity building to the

municipality to institutionalize the integrated urban regeneration approach.

1.3.4.2 Component 2: Grant Facility for Pro-poor Urban Regeneration

This component would fund a demand-driven, competitive matching grant facility for pro-poor urban

regeneration activities in the project area with the following three windows: Pro-poor Municipal

Investments and Initiatives Grant Window, Pro-poor Community-based Initiatives Grant Window and Pro-

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poor Business Development Grant Window. The implementation arrangements of the facility-funded

activities have been formalized through an Operational Manual.

(i) Pro-poor Municipal Investments and Initiatives Grant Window. The objective of the grant window

is to support small works implemented by the municipality, such as improvements in local

infrastructure and basic services and heritage conservation, to enhance the living conditions of the

poorest and most vulnerable communities in the project area. The municipality would be required to

provide matching contributions of at least 10 percent. Possible initiatives include stone paving and

improvements in solid waste collection, renovation of traditional water sources known as hitis (stone

spouts) and the maintenance and upgrading of public spaces within a community. All civil works

financed under this window will be constructed with seismic resilience and criteria for site selection

will take into consideration flood risk.

(ii) Pro-poor Community-based Initiatives Grant Window. The objective of the grant window is to

support community-driven initiatives for heritage conservation and the enhancement of cultural

identity, social cohesion and acceptance of cultural diversity. As is standard procedure throughout

Nepal, community groups would contribute a minimum of 10 percent of project costs in cash or in

kind. The grant facility could fund community-driven initiatives that engage neighborhood groups in

protecting their own heritage through participatory inventories of their local assets; facilitate

community-based maintenance and conservation initiatives (e.g., communal courtyards and local

shrines); support revitalization of disappearing celebrations and ceremonies; and create signage and

interpret traditional festival routes paying particular attention to benefits for poor neighborhoods along

the route. Given the high disaster risk in the built environment, a seismic risk awareness campaign

will be incorporated into the community-driven initiatives.

(iii) Pro-poor Business Development Grant Window: The objective of the grant window is to support

initiatives by eligible small businesses, NGOs, cooperatives and community-based organizations

aimed at involving the poorest and most vulnerable in the development of traditional handicrafts and

cultural tourism related products and services. The sub-grant recipients would be required to provide

matching contributions of at least10 percent. The grant facility could fund sub grants that, e.g.,:

provide training and skill development for poor artisans to improve technical know-how and the use

of time-saving tools and techniques; establish a handicraft exhibition and sales promotion facility

accessible to poor craftsmen to eliminate middlemen; develop a cultural tour of artisan workshops

that includes poor handicraft producers; develop new fee-based cultural activities that can be

provided by poor residents (e.g., storytelling, traditional cuisine and special interest tours such as

neighborhood temples and celebrations); provide vocational training for youth for innovative site

interpretation.

The community-based and business development activities would be selected competitively and

based on demand in accordance with grant selection and eligibility criteria defined as part of the

participatory planning process to maximize the impact in terms of community development and

poverty reduction. The proposals would be selected based on demonstrated direct benefits to the

target poor and vulnerable groups and alignment with the priorities identified as part of the

participatory planning process. The call for proposals will specify the eligibility criteria for the

submission of the proposals.

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1.3.4.3 Component 3: Community Awareness and Local Capacity Building for Pro-poor Urban Regeneration.

This component would fund community awareness-raising initiatives and local capacity building to

support the effective implementation of the urban regeneration activities and the sustainability of the

outcomes. Programs would include: community awareness and strengthening and municipal capacity

building.

(i) Community Awareness and Strengthening. This subcomponent would fund communication

programs, workshops, and training to: (a) sensitize poor and vulnerable residents on the value of

their heritage and its relevance to their wellbeing, including opportunities for sustainable pro-poor

revenue generating activities; (b) raise community awareness and preparedness for disaster risk

management in order to help residents understand the risk and take ex-ante measures to increase

their resilience; and (c) provide specialized technical support and expertise (in areas such as tourism

promotion, product development and marketing, cultural heritage renovation) to grant proponents as

required for the implementation of initiatives under the Grant Windows.

(ii) Municipal Capacity Building. This subcomponent would include training, seminars, workshops,

knowledge exchanges and technical assistance to enhance the capacity of municipal staff to: (a)

conserve, manage and promote the city’s cultural heritage as an asset for pro-poor economic

development; (b) effectively work with community groups, especially those representing the poor and

vulnerable, on urban regeneration activities; (c) directly foster access of the poor and vulnerable to

the socio-economic benefits of cultural industries; (d) engage in disaster resilient development and

construction techniques to protect future income streams; and (e) institutionalize the integrated urban

regeneration approach to ensure continuity of the activities after project closure. A needs

assessment would be carried our during project preparation to map ongoing municipal capacity

building activities and identify gaps which would be filled by the project.

1.3.4.4 Component 4: Participatory Monitoring & Evaluation and Knowledge Dissemination, Project Management and Administration

This component would support technical assistance and training for Monitoring & Evaluation (M&E),

knowledge dissemination, project management and administration.

(i) Participatory M&E and Knowledge Dissemination. This subcomponent would support: (a) the

development of a Management Information System (MIS) for the grant facility, and a program of

participatory community-based M&E to enable the tracking of socio-economic benefits accruing to

the local residents and the target poor and vulnerable groups from the project activities and assess

the performance of the grant facility in meeting its objectives and adhering to its targeting and

funding criteria; (b) household and community surveys at project start and completion to collect data

for the grant’s monitoring system, including PDO indicators data and disaggregated data on target

beneficiaries; and (c) the dissemination of lessons learned from the implementation of the grant to

promote the scaling up of the pilot through similar city-level initiatives (through workshops,

media/social media events).

(ii) Project Management and Administration. This subcomponent would cover the incremental

operating costs and the costs of strengthening the project management capacity of municipal staff

and local communities.6

6Excluding salaries of government staff.

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1.4 Project Institutional and Implementation Arrangement

A Steering Committee will be established to oversee implementation of the pilot, and support the

municipality in coordinating the activities with central agencies and the private sector. The structure of

the Steering Committee is provided in the Operation Manual.

A Project Management Team (PMT) will be established in the municipality for the implementation of the

project activities. With support from the Project Support Consultants (PSC), the PMT will have overall

responsibility for the project implementation as per the procedures specified in the Operational Manual.

The PMT, with support from the PSC, will assist in the screening of the sub-grants as per ESMF and also

be responsible for implementation of the municipal investments under the Pro-poor Municipal

Investments and Initiatives Grant Window.

Figure 1 illustrates the organizational structure for the urban regeneration pilot, and Table 1 further

describes the roles and responsibilities of the various stakeholders.

Figure 1: Project Organizational Chart

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Table 1. Project Roles and Responsibilities

Stakeholder Composition Roles and Responsibilities

Steering Committee

The Steering Committee is chaired by the Secretary of MoUD and includes the Joint Secretary of MoFALD, the Joint Secretary, MoUD, the Director General of DUDBC, the CEO of LSMC, one representative from the Kathmandu Valley Development Authority (KVDA), the Nepal Tourism Board, the Department of Archaeology, the Handicrafts Association, the Federation of Nepalese Chambers of Commerce (FNCCI), UNESCO and an NGO with expertise on disaster risk management to be selected by the Steering Committee during the first meeting. The KVDA acts as the Secretariat for the Steering Committee.

The role of the Steering Committee is to provide guidance and oversight to the urban regeneration pilot project. The Steering Committee:

a) Meets regularly to review progress and ensure coordination among central agencies and the LSMC

b) Reviews the social needs assessment and market analysis carried out as part of the participatory planning under Component 1.

c) Provides “no objection” for the Site Management Plan and Participatory Action Plan d) Plans and facilitates learning activities aimed at decision-makers throughout the

Kathmandu Valley to raise awareness of the urban regeneration approach, disseminate lessons learned and make best use of the demonstration effect of the pilot project.

The Steering Committee meets 4 times a year (every 3 months) and as requested by the CEO on the recommendation of the PMT to address special concerns, or to meet the requirement to approve the Action Plan.

Municipal Coordination Committee (MCC)

The MCC is chaired by the CEO of LSMC and includes the PMT Project Coordinator, the PMT Project Manager, the Ward Secretaries of the 4 selected wards, one representative from the KVDA (as the Steering Committee’s Secretariat), one representative from the District Development Committee, one representative from the FNCCI, and one representative from the poor and vulnerable communities in the project areas (selected by the MCC during its first meeting).

The MCC oversees coordination and implementation of the project, and supports the PMT in coordinating the activities with central agencies and the private sector. The MCC meets once a month and as requested by the CEO on the recommendation of the PMT.

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Project Management Team (PMT)

The PMT consists of 8 members including a Project Director (CEO of LSMC [with authority to delegate]), Project Coordinator, Project Manager (assigned full-time to the project), and a team of five people in the areas of cultural heritage conservation, social welfare, financial management, engineering and environmental protection and procurement.

The PMT is the core team established within the LSMC for overall development, implementation, management, coordination, and reporting on the project. The PMT as implementing agency is responsible for all activities under the project, but they will be assisted by a Project Support Consultant (PSC). The full staff of the PMT meets at least once a week with the PSC team for updates and review of implementation progress. More detail on the roles and responsibilities of the PMT are found under the in-depth description of each component in Chapters 4, 5, 6, and 7. The CEO is a joint signatory (with the Senior Accounts Officer) on the project’s Designated Account (DA).

Project Support Consultant (PSC)

The PSC is an autonomous third party, such as an NGO or CBO or a private consulting firm or individual consultants, with experience in project management, community mobilization, participatory planning. The PSC will include a DRM expert, a cultural heritage expert and safeguard experts.

The PSC is contracted by the PMT and is responsible for supporting the PMT (as per the ToR attached to this Operations Manual) to carry out all project activities including the day-to-day administration of the grant facility. See Chapters 4, 5, 6 and 7 for more detail on the role of the PSC.

Approval Committee

The Approval Committee is chaired by a highly respected independent expert and shall have 4 additional members: representatives of the FNCCI, KVDA, District Treasury Control Office and the Monument Conservation Office of Lalitpur.

The chair is appointed by the CEO of Lalitpur and shall have at least 20 years of relevant experience, and at least a Master’s degree in a relevant discipline (e.g., planning, economics, cultural heritage)

The Approval Committee shall review and approve sub-grant proposals based on information provided by the PMT/PSC for the Community-based Initiatives and the Business Development Initiatives Grant Windows, based on procedures and criteria agreed in Chapter 5. The committee also prepares a decision note with justification of the sub-grant selections and ranking and sends it to the World Bank for “no objection”.

Ward Secretaries

The ward secretaries in the 4 wards comprising the project area.

The ward secretariats will support the PMT/PSC in their tasks. Activities to be undertaken as part of ward duties are supporting the PMT/PSC in disseminating project information and outreach material, facilitating the participatory planning process, organizing meetings to support sub-grant applicants develop feasible initiatives and sub-grant ideas, facilitating proposal development and coordination, liaising between the community and the PMT, requesting specialized technical support to the PSC when needed and identifying problems in implementation.

The Lalitpur Municipal Board

The Municipal Board or their designated committee The Municipal Board approves the Participatory Action Plan, gives final approval of the selected sub-grant proposals and sub-grant completion reports.

11

Institutional arrangements for technical review of sub-grants.

The technical soundness and cost effectiveness of the urban regeneration activities funded by the grant

facility would be ensured by mobilizing experts through the Project Support Consultants (PSC) to review

proposals and their detailed plans on an as-needed basis. A cultural heritage specialist would be

retained as part of the PSC team over the course of implementation to review the planned municipal

investments and the sub-grant proposals with impact on tangible and intangible heritage, in order to

maximize benefits and identify any possible negative impacts of the pilot activities on heritage. Examples

include: inappropriate materials, design or installation of drainage for traditional streets (tangible

heritage); inauthentic representations of historic celebrations or traditional dress in a tourism activity

(intangible heritage). A private sector conservation architect and/or engineer, as required, would review

architectural and engineering plans for physical investments in construction or repair of buildings or

infrastructure. The expert team would be integral part of the PSC and would work with the municipality to

build expertise and sensitivity to issues in small business development, heritage conservation and

disaster risk reduction and mitigation. Furthermore, an independent expert with at least 20 years of

relevant work experience would be appointed as the chair person for the Appraisal Committee which

would be responsible for the evaluation and award of the sub-grant proposals based on the technical

review carried out by the PMT with support from the PSC expert team. 7

A panel of DRM experts would be retained as part of the PSC to carry out a technical review of the plans

for the retrofitting of heritage buildings, and ensure compliance with building by-laws and codes.

Although the National Building Code does not include guidelines for the retrofitting of historic buildings

for seismic resilience, a number of studies have been carried out on heritage conservation and disaster

risk reduction and mitigation in Nepal. This includes a recently completed study by Institute of Disaster

Mitigation for Urban Cultural Heritage, Ritsumeikan University and Tribhuvan University of Nepal on the

assessment of the structural safety of traditional buildings and the development of a comprehensive

disaster risk mitigation strategy for the historic core of Lalitpur City, including the strengthening of

courtyard exits, which are important evacuation routes. Work over the last three years has produced risk

mitigation proposals on structural reinforcement of traditional buildings and passageways, evacuation

preparedness and post-disaster responses. The project would provide the opportunity to pilot the main

recommendations of the study if retrofitting of traditional community buildings and heritage buildings is

identified as a priority in the project area. Furthermore, the National Society for Earthquake Technology

(NSET) will be part of the Steering Committee for the pilot.

1.5 Type and Nature of Civil Works Supported Under PURP

This project will fund small civil works in wards of 16, 18, 21, and 22 of LSMC. Such small civil works will

support the regeneration of the project area. In this context, some of the activities proposed by the

participants during ward level and LSMC level consultations are as follows:

Maintenance and renovation of communal courtyards and local shrines

Construction of small pavements in some areas of recipient wards

Stone paving in inner roads, in places of cultural and archeological importance

7 For more information, see relevant paragraphs under technical appraisal in the project paper (para 43).

12

Improvements in solid waste collection system

Conservation of heritage homes

Renovation of community buildings

Rehabilitation of stone spouts

Renovation and rehabilitation of wells

Greenery improvements

Own heritage through participatory inventories of their local assets

Facilitate community based installation of solar street lights

Construction and maintenance of public toilets

Improvement of traditional festival routes paying particular attention to benefits for poor

neighborhoods along the routes

Rehabilitation of ponds

Small infrastructure works that enable socio-economic benefits to accrue to the local residents and

target poor and vulnerable groups.

The maximum allocation for works under PURP is USD 820,000 over a period of four years. The above

list is indicative of the possible civil works that could be carried out under PURP based on the outcomes

of initial stakeholder consultations. Given that the activities are demand-driven, the works will be

identified through the planning process for the municipal investments under the Pro-poor Municipal

Investments and Initiatives Grant Window and through the competitive selection process for the

investments under the Pro-poor Community-based Initiatives and Business Development Grant

Windows.

1.6 Activities Excluded from PURP

The following lists the municipal investments and sub-grant activities that cannot be supported under the PURP.

Any municipal investment and sub-grant activity lying within the protected area/UNESCO declared

heritage site;

Any municipal investment and sub-grant requiring Environmental Impact Assessment (EIA) which will

be known after screening;

Any municipal investment and sub-grant activity that requires the permanent relocation of

households or involuntary (permanent or temporary) acquisition of land and property;8

Any municipal investment and sub-grant activity that requires use of hazardous materials in

manufacturing handicraft items, like use of toxic chemicals in metal products.9

1.7 Need for Environment and Social Management Framework

Although the general thrust and broad project interventions are well understood as outlined above, the

specific project activities are yet to be defined. Thus, the precise nature and scale of impacts can be only

determined once the selection of proposals under the various grant windows have been completed.

8 Land acquisition costs cannot be funded with JSDF.

9 Hazardous material includes any material that represents a risk to human health, property, or the environment due to

their physical or chemical or biological characteristics. Potential hazardous materials in this project may include corrosive

substances, toxic materials, flammable gases, acids/battery, cleaning fluids, rust remover, and oxidizing substances.

These are likely to be used in metal crafts such in metal casting, grinding and polishing, etc. Typical issues of concern

include lack of personnel protective equipment use, chemical burns and haphazard disposal of wastes with potential risk

of environmental pollution.

13

Since specific demand-driven urban regeneration activities will only be identified in the course of project

implementation, a mechanism for screening and assessing possible adverse short-term environmental

and social impacts during the municipal investments and sub-grant preparation is required. In this

context, a safeguard framework document is needed to ‘guide’ the planning, design and construction

elements of the project activities. Such a guidance document or a framework would help in integrating

and harmonizing the environment and social management principles at the various stages of project

preparation and execution. In this context, this Environment and Social Management Framework (ESMF)

has been prepared for the PURP.

This ESMF forms part of the comprehensive environmental and social management approach that has

been adopted for addressing the potential environmental and social impacts from PURP, even when

these are considered minor in nature. This ESMF defines: (a) the approach for identifying the

environmental and social issues associated with the PURPP activities; (b) the requirements for

conducting environmental and social screening and environment and social assessment studies; and (c)

measures to prevent, mitigate and manage adverse impacts and enhance positive ones.

Given that specific demand-driven urban regeneration activities will only be identified in the course of

project implementation, a mechanism for screening and assessing possible negative short-term

environmental and social impacts as well as preparing mitigation plans will be developed during project

preparation. This ESMF includes an exclusion list (presented in Section 1.6) as well as simplified

screening checklists (Annexes 4-6), which will be used to determine what types of environmental and

social assessment may be required for the proposed initiatives. The ESMF is thus a framework providing

guidelines that require being operationalized through Environmental Management Plans/Social Action

Plans (EMP/SAP) that will be prepared for specific initiatives, if required. A resettlement policy framework

is also included describing mechanisms for addressing the possible temporary disruption of informal

sources of income (e.g., temporary displacement of informal vendors), and temporary restrictions on

access to facilities while the construction work is ongoing in the project area. Further, it also contains an

Indigenous People-Vulnerable Community Development Framework (IP-VCDF), a gender development

framework, and capacity building measures and a monitoring mechanism. The ESMF also specifies

norms and procedures for the conservation and restoration of historic buildings and for dealing with

chance finds during small works.

1.8 Process Adopted for Preparing the ESMF

The process adopted for the preparation of this ESMF includes: review of safeguard policies of World

Bank, relevant environmental and social policies, acts, regulations and guidelines of the Government of

Nepal (GoN), and interactions and consultations with all concerned stakeholders. Therefore, this ESMF

is primarily based on the reviews of available relevant literatures and consultations with municipal level

and project level stakeholders.

The provisions of Nepal’s Environmental Protection Act (EPA)/ Environmental Protection Rules (EPR)

related to heritage sites have been reviewed and the Department of Archaeology’s guidelines and

specifications internalized. Accordingly, the ESMF specifies norms and procedures for the conservation

and restoration of historic buildings and for dealing with chance finds during small civil works. The

conservation and restoration of historic buildings will use traditional materials and construction

techniques as per the specifications of the Department of Archeology. The municipality will develop a

protocol for use by the construction contractors and/or local communities while conducting any

excavation work, to ensure that any chance finds are recognized and measures are taken for their

14

protection and conservation. Part of this protocol will be that when there are chance finds of

archaeological material, all excavation work at the site shall stop until the Department of Archeology can

determine if the site needs to be documented or scientifically excavated before works continue. The

protocols and protective measures will be included in the EMPs that will be prepared for specific

initiatives, with a focus on consultations and participation of the local stakeholders.

1.9 Purpose and Objectives of the ESMF

This ESMF seeks to:

1. Establish clear procedures and methodologies for screening, reviewing and managing

environmental and social safeguards for the municipal investments and sub-grants to be financed

under the Project.

2. Consolidate and facilitate understanding of all essential policies and regulations of the GoN as well

as the World Bank’s environmental and social safeguards regime that are applicable to the Project

3. Provide practical guidance on the implementation of the environmental and social management

measures.

4. Specify norms and procedures for the conservation and restoration of historic buildings and for

dealing with chance finds during small works.

5. Specify institutional arrangements, including appropriate roles and responsibilities for managing,

reporting and monitoring environmental and social concerns of the municipal investments and sub-

grants.

6. Provide a framework for consultation and information disclosure.

7. Determine the other institutional requirements, including those related to training and capacity

building, needed to successfully implement the provisions of the ESMF.

The application and implementation of this ESMF therefore, will:

1. Support the integration of environmental aspects into the decision making process of all stages

related to planning, design, execution, operation and maintenance of municipal investments/sub-

grants, by identifying, avoiding and/or minimizing adverse social and environmental impacts early-

on in the project cycle.

2. Minimize environmental degradation to the extent possible resulting from either individual municipal

investments/sub grants or through indirect, induced and cumulative effects of project activities.

3. Enhance the positive/sustainable environmental and social outcomes through improved/appropriate

planning, design and implementation of sub-activities/sub-components.

4. Consider the level of environmental and social risk of each type of investments in allocating time

and resources to be dedicated for stakeholder consultation.

5. Build the capacity of the LSMC to take-up and coordinate responsibilities related to the application

and implementation of the ESMF, including the preparation of the municipal investment/sub-grant

specific Environmental Management Plans/Social Action Plans (EMP/SAP), if required.

6. Provide guidelines and procedures for further consultations during project implementation, in

particular in defining and designing sub-grants and specific works.

7. Provide a systematic guidance to address potential risks and to enhance quality, targeting, and

benefits to the wards/communities, especially the vulnerable groups as defined in the project.

8. Ensure that those stakeholders, irrespective of whether they benefit from or are adversely affected

by the project interventions, are well informed and are able participate in the decision-making

process.

15

9. Support compliance with applicable legal/regulatory requirements of GoN as well as with the

requirements set forth in the relevant Bank policies.

10. Protect human health.

11. Minimize adverse impacts on cultural property.

Costs of implementing the ESMF is now known ex ante given that the municipal investments/sub-grants

are demand-driven. The types and costs of safeguard mitigation measures costs will only be known after

preparation of the required municipal investment/sub-grant specific Environmental Management

Plans/Social Action Plans (EMP/SAP). The technical assistance and training costs are estimated of the

order of US$ 150,000, comprising the costs of hiring of safeguard experts as part of the PSC and the

training requirements.

1.10 Revision/Modification of the ESMF

This ESMF will be an ‘up-to-date’ or ‘live document’ enabling revision, when and where necessary.

Unexpected situations and/or changes in the project or components design would therefore be assessed

and appropriate management measures will be incorporated by updating this ESMF. Such revisions will

also cover and update any change/modification introduced in the legal/regulatory regime of the country.

Also, based on the experience of application and implementation of this framework, the provisions and

procedures would be updated, as appropriate, in agreement with the World Bank and the PMT.

1.11 Limitations of the ESMF

This ESMF has been developed in line with World Bank’s Operational Policies (OPs) and is based on

GoN laws and regulations, as applicable at the time of preparation of this document. Any proposed

modifications in the laws, regulations or guidelines that were notified as ‘draft’ at the time of preparation

of this document have not been considered.

16

CHAPTER II: OVERVIEW OF THE PROJECT AREA

2.1 Geographical Location

LSMC is situated in the southeast part of the Kathmandu valley which is located between the latitudes

27o 32' 13" and 27

o 49' 10" North and longitudes 85

o 11' 31" and 85

o 31' 38" East. The valley lies at a

mean elevation of about 1350 m. above sea level.

The city spreads over an area of 15.43 sq.km and is divided into 22 wards. Of the 22 wards, ward no. 15

is the largest area wise, with an area of 2.43 sq.km, and ward no. 21 is the smallest, with an area of 0.09

sq.km.

The city is located over a plateau like area with its outer edges fanning out with gentle slopes towards

the rivers that form its boundaries. This is in consonance with the traditional settlement planning

philosophy where the settlements were located on relatively higher ground preserving the relatively fertile

agricultural land that surrounded it. This planning effort assured the optimization of the use of urban

space and the farmlands that carried economical as well as environmental significance to the urban

residents.

The altitude of the city varies from a minimum of 1266 m. to a maximum of 1366 m. above sea level,

which shows the relative flatness of the ground on which the city is located.

Lalitpur’s residents face the threat of natural disasters, due to their location in a high-risk seismic zone.

The seismic risk is amplified given the Lalitpur City’s social, economic, and political characteristics that

increase its vulnerability, particularly the rapid and uncontrolled development. The building code is ill-

enforced, public and private construction takes place without consideration of seismic risk, and technical

information about earthquake risk in the Valley is incomplete, difficult to understand, and dispersed.

Institutional arrangements and basic regulatory frameworks for construction supervision lack both

transparency and clear roles and responsibilities among government agencies at the national and

municipal levels. A dearth of investment in understanding and mitigating the risk continues to worsen the

situation.

2.1.1 Geographical Boundaries

East Imadol VDC and Harisiddhi VDC

West Kirtipur Municipality and Kathmandu Metropolitan City (KMC)

North Kathmandu Metropolitan City (KMC)

South Saibu VDC, Sunakothi VDC and Dhapakhel VDC

LSMC lies within the warm temperate climate zone of the Kathmandu valley, with a typical monsoonal

two-season year. The yearly average temperature in the city is 15-20o Celsius and the yearly average

rainfall is 2000-2400 mm.

17

2.1.2 Population

2.1.2.1 Population Distribution

The male population exceeds the female population in all age groups except for 75 years and above.

The dependent ratio is satisfactory as those in age below 10 and above 65 are less than the working age

population. In the old age group above 65, the female population is high in line with the national average.

Population figures based on census data are presented below.

2.1.2.2 Ward Wise Population of LSMC

Population of selected four wards of Lalitpur Sub-metropolitan City

Particulars Wards

16 18 21 22 Other 18 Wards

2001 Popualtion Census

Households 989 1287 906 1890 29924

Population 5294 6915 4249 8513 138020

Dalits10

' population 0 92 0 0

Janjatis11

or ethnic minorities' population 4742 6118 3377 6307

2011 Population Census

Households 858 1200 1143 2460 48920

Population 4362 5777 4659 10109 195895

Dalits' population N/A N/A N/A N/A N/A

Janjatis or ethnic minorities' population N/A N/A N/A N/A N/A

Note: N/A: Not Available

List of hills Dalits and Janjatis: Based on the classification for national census of 2001 by the CBS

Hills Dalits:

Kami, Damai, Sarki, Badi, Gaine and unidentified dalits

Hills and mountain Janjatis or ethnic minorities:

A. Newar

B. Magar, Chhantel, Rai, Sherpa, Gharti, Yakkha, Thakali, Limbu, Lepcha, Bhote, Byangsi, Jirel,

Halmu, Balung, Gurung, Dura, Tamang, Kumal, Sunuwar, Majhi, Danuwar, Thami, Darai, Bote,

Baram, Pahari, Hayu, Kusunda, Chepang, Raji, Raute

2.1.3 Literacy

The literacy rate of LSMC is 80.9 percent, which is higher than the national urban literacy rate of 71.6

percent and much higher than the national literacy rate of 54.1 percent. Among the literate population

56.6 percent are male and 43.4 percent female. The female literacy rate in LSMC too is higher than the

national and national urban female literacy rates of 39.67 and 41.71, respectively.

2.1.4 Employment

In LSMC, 5.2 percent of the people are unemployed. This is lower than the national average for the

urban population, but slightly higher than the overall national unemployment rate of 4.9 percent. (LSMC –

BaseLine survey 1999).

10

Low caste “untouchables”. 11

Defined as indigenous nationalities.

18

2.1.5 Settlement Pattern

The settlement pattern of LSMC shows the consonance with the traditional urban settlement pattern of

human history. The immediate area surrounding the Durbar Square was allocated for priests, noble men,

and people belonging to high castes. Next to this were people of the business community, craftsmen,

farmers, and workers. To the outermost boundary or the periphery of the city were lower class groups

such as cleaners and butchers. Agricultural land extended beyond the city core areas. The

conglomeration of people belonging to a particular caste or Jaat which also defined their occupation

group, at one particular location in city, and the benefit they got from being at that particular location in

relation to their work and activity, suggests some sort of zoning in early days. In other words the city was

zoned by caste or Jaat.

The project area wards, namely 16, 18, 21, 22, lie outside of the Durbar Square area. As per the zoning

by the Kathmandu Valley Town Development Committee, the project wards fall into two sub-zones of the

core city area: the conservation sub zone and the mixed old residential sub-zone. The conservation sub-

zone consists of houses, buildings, and temples etc. of traditional style and reflect the age old urban

character with various stages of historical development. The buildings typically surround courtyards with

interconnecting pedestrian passage ways. The mixed old residential sub-zone includes that part of the

core area not covered by the protected monuments sub-area and conservation-sub area. It retains many

traditional buildings but also more recently constructed buildings.

2.1.6 Income

If we categorize the population according to the income per annum, most of the households in LSMC

(57.6 percent) belong to the lower medium category, and 25.6 percent of the households belong to the

medium category. The number of poor households is 12.6 percent and a very small segment (4.2

percent) comprise the upper medium and rich. LSMC is not particularly poor, with only 12.6 percent of

households being defined as income poor. However, neither is it wealthy as more than 70 percent of the

people belong to the poor and lower medium categories. In Lalitpur, poverty is multidimensional and

includes social segregation, discrimination, lack of voice, vulnerability to shocks and poor access to

public infrastructure and services (e.g., water and sanitation, health care and education). These

dimensions of poverty reinforce disempowerment and exclusion from income generating opportunities.

2.1.7 Economy

Since historic times, LSMC has been known for its sound economics, which depended largely upon

agriculture, trade and commerce, particularly in agricultural products from the fertile land on its fringes

and artistic products of wood, bronze and copper. With its once fertile agricultural land being transformed

for urban use, today agriculture forms only a small part of its economy. Instead, the business and service

sector is now the largest contributor to its economy.

LSMC being one of destinations for tourists visiting Nepal, the business related to tourism has developed

significantly. Many tourists visiting Nepal visit LSMC at least once. Known for its art and craftsmanship,

the business related to traditional handicrafts has seen a boom with huge orders being received from

several foreign countries. The city has become a trade center for these traditional products.

19

2.1.8 Infrastructures

2.1.8.1 Water Supply and Sanitation

The historical city was established over 2,000 years ago. The Kirat regime constructed rain-fed ponds

and springs. Later the Lichhavi kings linked the ponds to stone spouts and dug wells to provide water to

the city. These structures were expanded during the Malla regime, when elaborate networks of canals,

ponds, and water conduits were constructed. The historical system was neglected after the introduction

of piped water system to Lalitpur about a century ago. The stone spouts have been further affected by

the recent uncontrolled exploitation of ground water and the destruction of former rainwater collection

ponds and recharge areas. During the summer season, most of the stone water spouts provide water for

three to four months regularly but the flow decreases during other remaining months, in many cases

drying up completely. A study conducted by the culture and archeology unit of LSMC revealed that out of

61 total stone spouts, 44 spouts are working properly, 10 have dried up, and 7 are out of order. The

stone spouts of the project area wards are as follows.

S.N Name of spout Number of taps Ward no Name of tole12

Site

1 Naga BahalHiti 3 16 Naga Bahal Settlement area

2 NabahiHiti - 16 Nabahil Settlement area

3 Tapa Hiti A 3 22 Nayatole Settlement area

4 Tapa Hiti B 3 22 Nayatole Settlement area

5 AlakoHiti 5 22 Ikhachen Settlement area

6 SithaHiti 1 22 Kumbeshwor Open area

7 AmritHiti 2 22 Kumbeshwor Settlement area

8 DathuHiti 1 22 Kumbeshwor Open area

9 WasaHiti 2 22 Kumbeshwor Open area

10 KontiPukhuHiti 1 22 Kumbeshwor Settlement area

11 MishaHiti 7 22 Kumbeshwor Settlement area

12 KontiHiti 5 22 Kumbeshwor Settlement area

13 Saithu Ganesh Hiti 1 22 Kumbeshwor Settlement area

Many households in the project wards are dependent on stone spouts for water. Regardless of whether

or not a household has a water supply connection, many residents of LSMC including those living in the

four project wards are desperate for water most of the year. Most of those with water supply connection

receive intermittent service of an hour or so a day or even on alternate days in many areas, at very low

pressure. Households not connected to the official water supply network rely on a variety of sources,

including shallow tube wells of uncertain quality, and on the stone spouts.

Due to the inadequate availability of water, sanitation conditions are also poor in the project wards.

Deprivation is apparent in the pervasiveness of poor nutrition and sanitation for most families.

2.1.8.2 Housing Pattern

The quality of housing is very poor in the project wards. Traditional houses have often suffered from

serious neglect and/or have been damaged by inappropriate additions (such as adding floors above

traditional houses, thereby undermining the structural soundness of the houses). New houses typically

have been built without consideration for building by-laws and thus are at the risk of collapse if there

were to be an earthquake. Houses are clustered around courtyards connected to each other and the

12

A tole is a neighborhood within a ward.

20

streets through narrow passage ways that pose a serious disaster risk – collapse of such passageways

would leave the inhabitants trapped inside the courtyards.

2.1.8.3 Cultural and Architecturally Important Places in Project Wards

Lalitpur city was planned around Vihars and Bahils13

. Out of the 295 Vihars and Bahils of the valley, 56

percent are in Patan. Water conduits, stone spouts, artistic gate ways, Hindu temples and Buddhist

Vihars adorn the city. In the project wards, there are several artistic gate ways, Hindu Temples and

Buddhist Vihars. The LSMC has maintained a culture of craft work even in the face of rapid urbanization

and many social and political upheavals. Some of the famous archeological and cultural places within

the project area include: Krishna Mandir (Gabahal), Ganesh Pati14

(Gabahal), Nakabihar,

RatnakarMahabihar, BalkhaPati, TilingeshworMahadev (Balkha), Balkha Math, SaraswotiMandir,

BishwokarmaMandir, KayonaniChaitya, VishwokarmaAvtar, HastinagarMahavihar, Swotha Narayan

Mandir, Uma MaheshworMandir, Hari Shankar Mandir to name a few.

The project location excludes the UNESCO World Heritage Site (i.e. in the Durbar Square). "Any

municipal investment and sub-grant activity lying within the protected area/UNESCO declared heritage

site" is excluded from PURP activities as per Section 1.6 of the ESMF.

13

Monasteries. 14

A pati is a shaded resting area, which may be incorporated into a building or be self standing, open on one or more

sides.

21

CHAPTER III: REGULATORY AND LEGAL FRAMEWORK

All municipal investments and sub-grants under the project must be consistent with the applicable laws,

regulations, and notifications of the GoN that are relevant in the context of the proposed

interventions/activities. The LSMC and the concerned line departments/agencies will ensure that the

municipal investments and sub-grants proposed and executed under PURP are consistent with the

regulatory and/or legal framework, whether national, state or municipal/local. Additionally, it is also to be

ensured that activities are consistent with the World Bank’s operational policies and guidelines. This

section is not a legal opinion on the applicability of the law but serves as guidance in the application of

the various laws and regulations to the current project context.

All activities funded under the grant facility will be aligned with regulations in the buffer zone, and must

comply with all national and local laws and building by-laws, including but not limited to those for cultural

heritage and environmental protection and seismic and fire safety (e.g., The Ancient Monuments

Preservation Act, 1956, the National Conservation Procedures, 2007 and the Kathmandu Valley Building

By-laws of 2007). The buffer zone is defined as "mixed residential area within conservation zone" in he

Kathmandu Valley Bye-laws of 2007. As the buffer zone is outside of the WHS, project activities are not

subject to UNESCO/ Department of Archeology oversight. See Section 3.1 for a complete list of laws and

regulations that apply.

3.1 Key Applicable National Environmental Laws and Regulations

This section highlights the salient features of selected laws that may have a bearing on the design and

implementation of the project. Not only will national Nepali legal requirements be applied to the project,

but so will World Bank policies. Screening will consider potential risks in addition to threshold criteria

according to Nepal regulation. High risk activities foreseen at this stage are those located in, or close to

the WHS, with these activities being ineligible. Other potential activities are small-scale demand driven,

and are likely to be classified as Category B projects according to the World Bank OP 4.01

categorization. The screening of grant applications will assess risks; Category A sub-grants will be

deemed ineligible for financing, and not be accepted.

A summary of such applicable rules and regulations is furnished in the table below:

Table 2. Applicable Environmental Policies, Acts, and Regulations

Act/Regulation Key Requirement/s or Salient Features Applicability

Environmental

Protection Act, 2053 BS

(1997)

Any development project, before implementation, to pass through

environmental assessment, which may be either IEE or an EIA

depending upon the location, type and size of the project.

May apply. Depending

on the location, type

and size, a sub-grant

may require an IEE or

an EIA. But for PURP

activities requiring EIA

are excluded.

Environmental

Protection Rule, 2054

BS (1997; Amendment,

1999)

Obliges the proponent to inform the public on the contents of the

proposal in order to ensure the participation of stakeholders.

Yes. This would apply

to individual sub-grants

as well as the overall

operation.

National Environmental

Impact Assessment

The guidelines provide guidance to project proponents on

integrating environmental mitigation measures, particularly on the

Yes. Applies to civil works

related to the

22

Act/Regulation Key Requirement/s or Salient Features Applicability

Guidelines, 2050 BS

(1993)

management of quarries, borrow pits, stockpiling of materials and

spoil disposal, operation of the work camps, earthworks and slope

stabilization, location of stone crushing plants, etc.

construction/

improvement of facilities/

infrastructure in the

project area.

Solid Waste

Management Act2011

Solid Waste Management Act aims to manage solid waste and

mobilize resources related thereto and ensure the health

convenience of the common people by controlling the adverse

impact on pollution from solid waste. The commercial or industrial

establishments should adhere to the clauses mentioned in the act

during the construction and operation phases of the projects.

May apply – depends

on type of waste

generated during

construction and

operation of facilities

supported by the

project.

Ancient Monument

Preservation Act, 2013

BS (1956)

It is deemed necessary to conserve, maintain and renovate the

private ancient monuments of importance from national and

international views, by the Department of Archeology. The DoA

may conserve, maintain and renovate such ancient monuments.

Yes.

The Labor Act, 2048 BS

(1992)

Regulates the working environment and deals with occupational

health and safety aspects.

Yes.

Local Self Governance

Act, 2055 BS (1999)

Empowers the local bodies for conservation of soil, forest and

other natural resources. Sections 28 and 43 of the Act provide the

municipality, District Development Committees (DDCs), and

Village Development Committee (VDCs) a legal mandate to

formulate and implement programs related to

protection/conservation of environment during the formulation and

implementation of a district level plan. The Act also governs the

participatory process for works relating to participatory planning,

autonomy of local governments, community mobilization,

community monitoring, measures for marginalized groups,

including women, etc.

Yes.

The Interim Constitution

of Nepal, 2063 (2007)

It has provisions of rights regarding environment and health.

Every person shall have the right to live in a clean environment;

every citizen shall have the right to get basic environmental

services free of cost from the State as provided for in the law.

Yes.

Kathmandu Valley

Building By-Law,

2007(2064 BS):

The legislation mainly focuses on managing the impacts of

increasing population pressure and unplanned urbanization in the

valley. The legislation also aims to mitigate the impacts of

haphazard construction activities in the valley. The standards

imposed to develop apartment building residences include

FAR should be 3.5

Front part setback should be minimum 6 m.

The minimum width of road adjacent to co-owned

apartment building residence or roads connected to

adjacent roads should be at least 8 m.

Other directives will be as per the Residential Ownership

Act, 1997

Yes.

National Building Code of Nepal, 1993 (2050 BS)

There are 23 different title-wise volumes of building code, which

form a single national building code of Nepal, 1993. The National

Building Code was prepared in 1993 by then Ministry of Housing

and Physical Planning (now MoUD). This code emphasizes the

need for changes and improvement in the current building

construction design and methods. The publication represents a

standard of good practice.

Yes.

National Urban Policy,

2007 (2064 BS)

The National Urban Policy 2007 aims to promote a healthy,

livable, safe, and economically vibrant urban environment though

planned provision of infrastructure services, facilities and

Yes.

23

Act/Regulation Key Requirement/s or Salient Features Applicability

amenities that ensure improved quality of life of urban people.

Other aspects of the policy include:

- Importance of environment conservation while carrying out

urban development works and natural resource utilization.

- Promoting development of compact city/towns/settlements.

- Preparation and implementation of “Disaster Management Plan”

by local government agencies to cope with the loss of lives and

properties resulting from natural disasters.

Climate Change Policy

GoN, 2001

Addresses the issues of climate adaption and disaster risk

reduction. Forecasting water-induced disasters, reducing

vulnerabilities and providing early warning information for disaster

management are some of the key points of the policy. The policy

provides some guidelines to address the issues of vulnerable

infrastructure in the context of reducing their risk to climate related

disasters.

Yes.

Three Years Plan,

National Planning

Commission,2011/12-

2013

Requires that all projects be formulated and implemented based

on methods that optimally utilize local skills and resources and

generate employment opportunities. In the building, residents and

urban development section the plan clearly set its long-term vision

of managing haphazard urbanization through physical planning.

Public and private buildings will be constructed by using local

technology and raw materials as far as possible. To meet the long

term vision, an objective has been set for the construction of new

buildings which is secured, resistant and environmental friendly.

This project will utilize the local technology and materials as far as

possible to make the project environmentally sound. The plan

also requires that the social concerns relating to equity,

community participation are taken into account in project planning

and implementation.

Yes.

ILO Convention on

Indigenous and Tribal

Peoples, 1989

(No.169)

In 2007, the UN Declaration on the Rights of Indigenous

Peoples was adopted by the General Assembly. Nepal

ratified ILO Convention No. 169 on September 14, 2007 (BS

2064/05/28). Article 1 of the convention provides a

definition of tribal and indigenous peoples.

Article 6 requires consultation with the peoples concerned

through appropriate procedures and, in particular, through

their representative institutions, whenever consideration is

being given to legislative or administrative measures which

may affect them directly.

In Article 15, it states that indigenous and tribal peoples

shall, wherever possible, participate in the benefits of

natural resource utilization activities and shall receive fair

compensation for any damages which they may sustain as a

result of such activities.

Article 16(2) clearly mentions that where the relocation of

these peoples is considered necessary, such exceptional

measures and such relocation shall take place only with

their free and informed consent.

Where their consent cannot be obtained, such relocation

shall take place only following appropriate procedures

established by national laws and regulations, including

public inquiries where appropriate, which provide the

opportunity for effective representation of the peoples

concerned.

Yes. As indigenous

peoples are present in

the sub- project area,

the convention

requirements are

applicable to the

proposed project.

24

Act/Regulation Key Requirement/s or Salient Features Applicability

Article 16(3) mentions that, whenever possible, these

peoples shall have the right to return to their traditional land

as soon as the grounds for relocation cease to exist.

Article 16(5) specifies the persons thus relocated shall be

fully compensated for any resulting loss or injury.

Information and Communication Policy, 2059 BS

The policy has developed long-term requirements for information and communication.

Yes.

3.2 Key Applicable National Social Laws and Regulations

There are a several laws addressing social issues in Nepal. The policies relevant to the project are

briefly explained below.

Table 3. Applicable Social Policies, Acts, and Regulations

Act / Regulation Salient Feature/s Applicability

The Interim

Constitution of Nepal

2063 BS (2007)

The interim constitution of Nepal, 2007 focuses on raising the

standards of living of the general public. The Article 35 (1) asserts

that; The State shall pursue a policy of raising the standards of

living of the general public through the development of

infrastructures such as education, health, housing and employment

of the people of all regions, by equitably distributing investment of

economic investment for the balanced development of the country.

Yes.

Labour Act, BS 2048

(1992)

This Act classifies those persons younger than 15 years as

children and those between the ages of 15 and 18 as ‘’Nabalik.’

The act specifies that working hours for Nabalik and women must

be between 6 a.m. and 6 p.m. and prohibits night working hours for

women. Children are prohibited from working.

The Act also states that equal opportunity shall be given to women

as that of men. Regular work hours for other employees must not

exceed 8 hours in a day and 48 hours in week. For work

conducted beyond that period, over time allowances must be paid

at the rate of 150% of the normal hourly wages, not to exceed 4

hours each day. According to this act, employee wage rates shall

not be less than the rate fixed by the concerned GoN offices.

Yes. The act is

mandatory and directly

relevant to

implementation of the

proposed project

activities. It provides for

the mode of appointment,

working hours, control of

child labor, equal

remuneration and other

labor requirements.

National Foundation for

Upliftment of

Adivasi/Janjati Act,

2058 (2002)

GoN has identified and legally recognized 59 indigenous

communities. They are officially referred to as AdivasiJanajati in

Nepali and Indigenous Nationalities in English as per the National

Foundation for Upliftment of Adivasi/Janjati Act, 2058 (2002). One

can find vast disparities in terms of socio-economic standing

among the Adivasi and Janajati groups. According to Nepal

Federation of AdivasiJanajati (NEFIN) 10 of the 59 AdivasiJanajati

are "endangered", 12 "highly marginalized", 20 "marginalized", 15

"disadvantaged" and 2 are "advanced" or better off on the basis of

a composite index consisting of literacy, housing, landholdings,

occupation, language, graduate and above education, and

population size.

Yes.

Right to Information

Act, 2064 (2007)

The aim of this act is to make the functions of the state open and

transparent in accordance with the democratic system and to make

it responsible and accountable to the citizens. It intends to make

the access of citizens to the information of public importance held

Yes.

25

Act / Regulation Salient Feature/s Applicability

in public bodies simple and easy and to protect sensitive

information that could have an adverse impact on the interest of

the nation and citizens.

Clause 3 of the act ensures the Right to Information. It says that

every citizen shall, subject to this Act, have the right to information

and they shall have access to the information held in the public

Bodies unless confidentiality has been maintained by laws.

Clause 4 of the act describes the Responsibility of a Public Body to

disseminate information. It mentions that each Public Body has to

respect and protect the right to information of citizens. Public

Bodies shall have the following responsibilities for the purpose of

protecting the right to information of citizens:

- to classify and update information and make them public, publish

and broadcast to make the citizens' access to information simple

and easy;

- to conduct its functions openly and transparently;

- to provide appropriate training and orientation to its staffs.

Public Bodies may use different national languages and mass

media while publishing, broadcasting or making information public.

A Public Body shall arrange for an Information Officer for the

purpose of disseminating information held in its office.

The clause 7 of the act prescribes the Procedures of Acquiring

Information. It states that a Nepali Citizen, who is interested to

obtain any information under this Act, shall submit an application

before a concerned Information Officer by stating the reason to

receive such information.

3.3 Applicable World Bank Policies

The World Bank's environmental and social safeguard policies (ten of them) are a cornerstone of its

support to sustainable poverty reduction. The objective of these policies is to prevent and mitigate undue

harm to people and the environment in the development process. These policies provide guidelines for

the identification, preparation, and implementation of programs and projects.

The following operational policies of the World Bank are relevant for PURP from an environmental and

social viewpoint.

Safeguard Policies Triggered in PURP

Safeguard Policies Triggered by the PURP Yes No

Environmental Assessment OP/BP 4.01 X

Natural Habitats OP/BP 4.04 X

Forests OP/BP 4.36 X

Pest Management OP 4.09 X

Physical Cultural Resources OP/BP 4.11 X

Indigenous Peoples OP/BP 4.10 X

26

Involuntary Resettlement OP/BP 4.12 X

Safety of Dams OP/BP 4.37 X

Projects on International Waters OP/BP 7.50 X

Projects in Disputed Areas OP/BP 7.60 X

3.4 Environmental Assessment (OP/BP 4.01)

The World Bank's environmental assessment policy and recommended processing are described in

Operational Policy (OP)/Bank Procedure (BP) 4.01: Environmental Assessment. OP/BP 4.01 is triggered

to ensure that the Bank financed project activities are environmentally sound and to assess projects

likely to have potential adverse impacts/risks.

The policy states that Environment Assessment (EA) and mitigation plans are required for all projects

having significant adverse environmental impacts or involuntary resettlement. ESMF section 1.6 lists

activities that are not eligible, including "Any municipal investment and sub-grant requiring

Environmental Impact Assessment (EIA), which will be known after screening". This is further clarified in

the "flow of safeguard categorization for PURP activities" presented in Chapter 5. For the Pro-poor

Community-based Initiatives and the Pro-poor Business Development Grant Windows, the list of

excluded activities will be specified in the calls for proposals. The safeguard screening/assessment

process at various stages of the sub-grant cycle is described in Section 5.4. The Operational Manual

includes the sub-grant application form (Annex 1), the sub-grant proposal screening to ensure

compliance with the call for proposal requirements (Annex 2), and the sub-grant evaluation form (Annex

3). Safeguard screening checklists are included in the Annex 4-6 of the ESMF (Involuntary Resettlement

Impact, IP and Environmental screening checklists). The Municipality will hire the Project Support

Consultants (including safeguard experts) to help them with the safeguard review of the sub-grants. The

municipal investments (for maximum value of US$ 825,000) will be identified through the planning

process and implemented by the municipality, so the screening will be done by the municipality at the

time of the identification of the investments.

Environmental Assessment is thus used by the World Bank to identify, avoid, and mitigate the potential

negative environmental impacts associated with the Bank’s operations early on in the project cycle as

well as to improve decision making, ensure that project options under consideration are sound and

sustainable, and that potentially affected people have been properly consulted and their concerns

addressed. Assessment should include analysis of alternative designs and sites, including the “no project

option” and require public participation and information disclosure before the Bank approves the project.

3.5 Physical Cultural Resources (OP/BP 4.11)

Physical Cultural Resources (OP/BP 4.11) is triggered because there are buildings and temples of

cultural importance in the project area. The project area is, however, outside the World Heritage Site,

and there are no cultural sites of international importance in the project area. There are traditional

buildings, temples and squares with cultural importance locally, however. We provided some information

on the type of traditional buildings in the project area based on information available from the

municipality in sections 2.1.5 and 2.1.8.3. One of the activities that will be carried out as part of the

participatory planning under Component 1 is the preparation of an inventory of tangible and intangible

cultural assets in the project area.

27

The World Bank Policy OP/BP 4.11 defines physical cultural resources as movable or immovable

objects, sites, structures, groups of structures, natural features and landscapes that have archaeological,

paleontological, historical, architectural, religious, aesthetic, or other cultural significance. Physical

cultural resources may be located in urban or rural settings, and may be above or below ground, or

under water. Their cultural interest may be at the local, provincial or national level, or within the

international community.

The Bank assists countries to avoid or mitigate adverse impacts on physical cultural resources from the

development projects that it finances. The impacts on physical cultural resources resulting from project

activities, including mitigating measures, may not contravene either the borrower’s national legislation, or

its obligations under relevant international environmental treaties and agreements. The borrower

addresses impacts on physical cultural resources in projects proposed for Bank financing, as an integral

part of the environmental assessment (EA) process. The World Bank will also follow compliance with

Nepal’s chance find policy.

Norms and procedures for the conservation and restoration of historic buildings and for dealing with

chance finds during small works will be specified. The conservation and restoration of historic buildings

will use traditional materials and construction techniques as per the specifications of the Department of

Archeology. A protocol for use by the construction contractors and/or local communities in conducting

any excavation work will be developed, to ensure that any chance finds are recognized and measures

are taken for their protection and conservation. As per the agreed protocol, all excavation work at the site

would need to stop when there are chance finds of archaeological material until the Department of

Archeology determines if the site needs to be documented or scientifically excavated. The protocols and

protective measures will be included in the EMPs that will be prepared for specific initiatives, with a focus

on consultations and participation of the local stakeholders (see section 4.3.3)

3.6 Indigenous People (OP/BP 4.10)

Indigenous People (OP/BP 4.12) is triggered because of the presence of indigenous people, i.e.,

Janajatis in the project area. The traditional population of LSMC is Newar and even with migration, the

proportion of Newar in the city remains high. Although many Newars are relatively well off, they are

categorized by law as Janajatis, i.e., indigenous groups. The Newars also retain collective attachment to

Lalitpur, returning to the historical area for many cultural and religious activities. Hence the triggering of

this safeguard policy. Besides the Janajatis, Dalits and other vulnerable groups are also present in the

project area.

This policy states that any development process under World Bank financing should fully respect the

dignity, human rights, economies, and cultures of Indigenous Peoples (IPs). The project should engage

in a process of free, prior, and informed consultation with IPs that should result in broad community

support to the project by the affected Indigenous Peoples. An Indigenous Peoples Plan (IPP) is also

required irrespective of the magnitude of impact on IPs. Guidelines for preparing IPPs are included in

Annex 7. A number of such consultations were held at the ward level in recipient wards in April, 2013

(Annexes 8 and 9).

Projects should include measures to avoid potentially adverse effects on the IP’s communities or when

avoidance is not feasible, minimize, mitigate, or compensate for such effects. They should ensure that

the IPs receive social and economic benefits that are culturally appropriate and gender and inter-

generationally inclusive.

28

3.7 Involuntary Resettlement (OP/BP 4.12)

As per World Bank policy, Involuntary Resettlement (OP/BP 4.12) is triggered in case of disruption of

informal sources of income or livelihoods that happens due to project interventions. The project

interventions, however, do not involve any involuntary (permanent or temporary) land taking. As per

JSDF rules, no land acquisition can be funded with the grant. Voluntary donation may be possible.

OP/BP 4.12 recognizes that involuntary land-taking resulting in loss of shelter, assets or access and

income or sources of income should be addressed by World Bank-financed projects. Displaced persons

should be meaningfully consulted, given opportunities to participate in planning and implementing

resettlement programs and assisted in their efforts to improve their livelihoods and standards of living.

Absence of legal title to land should not be a bar for compensation, resettlement, and rehabilitation

assistance. Vulnerable groups such as IPs, women-headed households, and senior citizens should be

entitled to special benefit packages in addition to compensation and resettlement. The Operational Policy

is applicable whenever there is involuntary land taking resulting in displacement of people and/or loss of

livelihood or source of livelihood.

In this project there will be no involuntary (permanent or temporary) land taking although there could be

temporary business disruptions, and obstruction to access resulting in loss of income or livelihoods,

albeit temporarily in nature.

Any kind of land requirements will be met through voluntary donations, which are envisaged to be minimal without economic or physical loss and displacement. Hence minimal impacts, if any, are expected. In rare cases where land is required, the following principles related to voluntary land donation will be applied:

The impacts from land donation are marginal (based on a loss of up to 10% of productive assets).

Impacts do not result in displacement of households or cause loss of household incomes and livelihoods.

Remaining assets of the donor households are not rendered economically unviable after the donation.

The households making voluntary donations are direct beneficiaries of the project.

Land donated is free from any dispute on ownership or any other encumbrances.

Consultations with the affected households are conducted in a free and transparent manner.

There will be a mechanism in place to document the consultations, grievances and actions taken to address such grievances.

A memorandum of agreement will be established as a means of recording the location and size of land being donated as well as the written consent and names of local witnesses for those community members donating lands voluntarily. It will contain specific provisions to record that the land being donated is free of squatters, encroachers or other claims or encumbrances.

A verification mechanism will be in place to monitor and report on any violation of commitment to only

use voluntary land donation.

29

30

CHAPTER IV: POTENTIAL ENVIRONMENTAL AND SOCIAL IMPACTS

AND THEIR MANAGEMENT

4.1 Likely Beneficial Impacts

The beneficial impacts of the proposed project are discussed below.

The proposed project aims to improve local services and public spaces, promote local heritage and

develop income-generating activities linked to cultural industries in selected distressed neighborhoods’ of

the historic core of Lalitpur City. The pilot would contribute to improving living conditions and enhancing

cultural identity and awareness, and the value and acceptance of cultural diversity in the project area.

The pilot would also provide economic opportunities to the poorest members of the communities through

income-generating activities linked to cultural industries (handicrafts and tourism) and small works. From

a poverty reduction perspective, cultural industries such as handicrafts and tourism development have

many comparative advantages over other sectors, when they are properly managed. Handicrafts

development has: (a) high employment potential and the ability to provide an alternative source of

income that allows part-time and/or home-based work for women and disadvantaged groups; (b) low

capital investment requirements with significant potential for value added products; and (c) ability to

sustain and capitalize on high levels of skill and artistry. Sustainable tourism development: (a)

contributes to diversifying local economies, especially in poor areas with few other export and

diversification options; (b) offers labor-intensive and small-scale employment opportunities, employing a

high proportion of women and young entrepreneurs; (c) values cultural aspects and natural resources

that may be among the very few assets belonging to the poor; and (d) provides opportunities for local

communities to sell goods and services by bringing the consumer to the destination.

At this stage, only the generic interventions are known. Exact project interventions will be identified

during implementation. After the exact type and nature of interventions are known, detailed assessment,

as per the rules specified in this ESMF would be carried out in the context of beneficial impacts, its

extent, and type and nature of beneficiaries.

4.2 Likely Adverse Impacts

4.2.1 Environmental

The specific interventions planned for PURP may have some limited adverse environmental impacts in

the short term. The adverse or negative impacts related environmental issues are elaborated below:

Potential construction period impacts or temporary impacts to residents, government facilities and

businesses in the project areas of the participating wards of LSMC.

Issues related to noise, air, and water pollution during construction. These issues are prominent

during the construction activities of civil works like construction of pavements, repair of roads and

sidewalks, renovation of ponds, stone spouts, etc.

Issues related to temporary disruption to basic services (water supply, electricity, telephones).

Issues related to impacts on recharge areas/acquirers due to construction of structures, storage of

materials, encroachment, etc.

During construction, motorists and pedestrians in the project area may experience some delays and

detouring. Some streets would be closed during construction and others would be subject to periodic

lane closures. Further delays would occur as construction trucks and equipment use local streets.

31

Possible short-term concerns such as environmental health hazards from crafts activities, use of

inappropriate/ hazardous materials in rehabilitation works,15

risks to the traditional/ cultural

structures, and increased dust, noise and construction debris from the construction of small-scale

infrastructure works, issues related to storage of construction materials in road and disturbance to

traffic, issues related to occupational health and safety of workers, and issues related to disaster

risks.

Degradation of cultural sites.

Risks related to not reporting of chance find during the excavation, cultural and archeological issues

during the construction and renovation of structures.

Obstruction to tourists and visitors to temples, architectural places during the construction period of

civil works.

4.2.2 Social The project is envisaged to advance positive social benefits. In some instances, however, the specific interventions planned for PURP may lead to some temporary loss of livelihood/trade/occupation or incomes (e.g., temporary displacement of informal vendors). Further, implementation of PURP may adversely affect commercial, industrial or institutional activities in the project area on a temporary basis. However, no involuntary (permanent or temporary) land taking will be allowed, and any kind of land requirements for the project will be met through voluntary donations, which are envisaged to be minimal without economic or physical loss and displacement. Hence minimal, if any, impacts are expected. The

following categories of issues/impacts may result from this project, though land acquisition and large scale loss of livelihood are highly unlikely: Loss of access to public infrastructure, common resources and facilities Loss of livelihood, trade,

occupation or incomes.

Negative impact on commercial, industrial or institutional activities.

Loss of land, structures and or standing crops, trees and perennial trees.

Risks associated with inadequate or absence of public consultations and information disseminations

and its impact on PURP planning and implementation, including with indigenous people and other

vulnerable communities.

Risks associated with non-identification of vulnerable communities, lack of gender sensitive planning,

and non-consideration of disruption of informal sources of income due to project interventions.

4.3 Generic Mitigation Measures for each Identified Potential Impacts

At this stage, only potential impact and generic mitigation measures can be listed since the activities are

demand-driven, with the municipal investments (for a maximum value of US$ 850,000) to be identified as

through the participatory planning process. It is thus unknown, for instance, whether there will be any

investments related to water source protection. Hence, the investment specific mitigation impact will be

identified as part of the preparation of the investments. The budgeting and the costing of mitgation

measures will also be included in the environmental assessment, as required. Approval of the

environmental assessment and fulfillment of all safeguard requirements will be a condition for signing the

contract with the sub-grant applicant, as specified in the Operational Manual. An entitlement matrix is

provided in section 5.3.1. Possible generic construction phase impacts of PURP interventions and

suggested mitigation measures are elaborated below.

15

Potential hazardous materials in this project may include corrosive substances, toxic materials, flammable gases, acids/battery, cleaning fluids, rust remover, and oxidizing substances. These are likely to be used in metal crafts such in metal casting, grinding and polishing, etc. Typical issues of concern include lack of personnel protective equipment use, chemical burns and haphazard disposal of wastes with potential risk of environmental pollution.

32

4.3.1 Physical Environment

Identified Impacts Suggested Mitigation Measures

Impacts related to digging of foundation

All work sites shall be fenced to avoid accidents. The excavated materials shall

be used as construction material (as applicable). The unused materials shall be

given to the needy.

Impacts of air pollution (particularly dust)

and its impacts on surrounding

environment

Vehicle speed control and sprinkling of water on roads and in construction sites

on a regular basis. The construction material shall be properly stored and

covered during the transportation of materials.

Impacts related to noise created by the

vehicle used for the transportation of

construction material

Nighttime construction work shall not be allowed, with works to be scheduled

only between 8 a.m. and 6 p.m. Vehicle speeds shall be kept within a 30 km/hr

speed limit. Vehicles used for project activities shall be maintained, with use of

old and worn out vehicles to be avoided to control noise pollution. A potential

daytime noise threshold could be established – possibly at 55 dBa for residential,

institutional and educational receptors at boundaries, and 70 dBa for industrial

and commercial receptors at boundaries.

Impacts related to stockpiling of

construction material during civil works

Construction material shall be stored/stock piled in designated areas, fenced and

covered for safety.

Impacts related to traffic obstruction and

traffic management due to the movement

of construction vehicles

Adequate traffic signs, warning signs, and scheduling of transport operations

outside office hours to avoid traffic congestion and inconvenience to people.

Possibility of contamination of water

sources due construction activities.

Protection of water sources..

Impacts related to health and safety of

workers, and visitors during the

construction period

Use of safety signs in places, fencing of active work places/construction sites,

provision of Personal Protective Equipment (PPE) to workers.

Impacts related to obstruction and

disturbances to tourists visiting historical

and cultural sites

Adequate safety signs shall be used in construction areas, alternative routes for

tourist to visit such places shall be arranged during the construction phases.

Impacts related to wastes during

construction and operation phases of the

project

Management of waste during construction and operation phases of the project,

including through prohibition of littering and illegal dumping of waste in premises

and their surroundings.

Impacts to recharge areas/aquifer Such activities would be excluded.

Physical damages and other Impacts due

to use of heavy equipment in inner core

areas of recipient ward

Use of heavy equipment will be avoided as far as possible,

Flood-related impacts for construction No works shall be undertaken during the main monsoon rainy season between

June and August.

4.3.2 Biological Environment

Identified Impacts Suggested Mitigation Measures

Impacts related to loss of, or

disturbance to land, trees, crops

and flora during construction

period

Cutting/removal of large flora would be excluded. Only weed and small tree removal

from courtyard will be permitted.

Impacts related to use of

hazardous materials in project

activities, especially in metal

crafts

During the processing of grant applications, environmental screening will assess risks related to hazardous materials. Various options will be explored, such as substituting the hazardous materials with non-hazardous or less hazardous material, avoiding or minimizing use of hazardous materials, implementing management control suitable to small scale/ household operation (such as handicrafts), training the operators, preparing written safety process (or standard Operating Procedures) and keep visible displays, provision of suitable personnel protective equipment (e.g. footwear, masks, protective clothing & goggles, emergency eye-wash, shower, ventilation, fire-extinguisher, first-aid, etc.) and specially designed waste segregation, collection, storage and disposal systems.

33

4.3.3 Socio-economic, Cultural, and Archaeological Environment

Identified Impacts Suggested Mitigation Measures

Disturbance to local residents due

to obstructed access to public

infrastructure, common resources

and facilities, pollution, etc.

Prior information dissemination to the public regarding the nature, schedule of

work in advance.

Timely completion of work to minimize disturbance.

Adherence to pollution control measures as elaborated above.

Pressure on local infrastructures

due to influx of workers

Record keeping of workers.

Provide orientation and training to workers for maintaining social harmony,

prohibition of ill-social behaviors (alcohol, gambling, etc.).

Local people shall be engaged in construction as per their skills and

qualifications.

Obstruction to

worshippers/pilgrims/visitors while

entering temple premises during

renovation of temple, shrines,

stupa (semi hemispherical

structure containing Buddhist

relics)

The access shall be provided to the priest/care taker of the temple/shrines for

certain hours of each day, so that the priest and visitors can visit the temple.

Issues related to chance finds

during excavations or other works

as well as other cultural issues

encountered during works on

physical cultural resources

The new construction in any means shall not deteriorate the “authentic nature” of

the temple/shrines/or any structure of archeological importance.

Department of Archeology (DoA) norms for materials, size/shape, shall be

followed. Encourage representatives from DoA to be present during the

excavation period. The LSMC shall follow the Ancient Monument Preservation

Act, 1956 of GoN in addition to the following requirements:

(i) The municipality shall develop a protocol for use by construction

contractors in conducting any excavation work, to ensure that any

“chance finds” are recognized and measures are taken to ensure they

are protected and conserved. Part of this protocol will be that when

“chance finds” of archaeological material occur, all excavation work at

the site shall stop until the DoA can determine if the site needs to

be documented or scientifically excavated before work continues.

(ii) All materials used in the repair and restoration of historical buildings

and their surroundings (plinths, walls, stairs, paving etc.) shall be of

traditional materials (e.g., lime mortar instead of cement, Jhingati roof

tiles, dachi brick, etc.) and be of high quality. The DoA will provide

specifications for such materials as wood (for columns, rafters, struts),

brick or stone (for paving, stairs, walls, plinths), lime mortar, and roof

tiles that shall be followed. Materials shall be checked at pre-shipment

and at delivery for compliance with specifications.

(iii) The construction techniques (joints, fasteners, etc.) shall be consistent

with the original temple construction techniques. While the design of

parts that must be replaced (e.g., struts, column bases) should be

consistent with and match the existing temple in scale, design, level of

detail, best practice would be to clearly indicate the difference between

old and new elements.

(iv) The materials and construction techniques shall be of such quality that

they shall not require major repairs or refurbishment and should be

sustainable over time with little beyond routine maintenance.

(v) Craftsmen with knowledge and skills applicable to the style and age of

the temple design shall be employed to do the traditional repair and

34

Identified Impacts Suggested Mitigation Measures

restoration activities (e.g., woodcarving, mortar preparation,

replacement of joists, etc.).16

Possible temporary disruption of

business activities, with possible

loss of incomes

There should be no need to close shops and retail outlets for longer period.

However, the resettlement policy makes provision for compensation for

temporary business losses during construction.

Risks associated with inadequate

or absence of public consultations

and information disseminations

and its impact on PURP planning

and implementation, including with

indigenous people and other

vulnerable communities

The risk has been taken into account in the project design. At the inception of

the project activities, a social assessment and participatory plan will be

prepared based on procedures set out in the Operational Manual. A project

component (USD 320,000) has been designed to promote community

awareness and strengthen communities, in line with the demand-driven

approach of the project.

Risks associated with non-

identification of vulnerable

communities, lack of gender

sensitive planning, and non-

consideration of disruption of

informal sources of income due to

project interventions

The risk has been taken into account in project design. Benefits to the poor

and vulnerable will be the main criteria for selecting the sub-grants under the

grant facility, together with sustainability amd cost effectiveness. A screening

checklist will be required to be submitted with the sub-grant application form to

identify potential temporary social impact such as disruption of informal

sources of income. The Gender Development Framework included in this

ESMF will be followed to ensure gender-sensitive planning. Number of female

beneficiaries will be monitored annual as a core indicator for the project.

16

As per Ancient Monument Preservation Act, 1956 of GoN, the chance find shall be reported to DoA. The DoA will treat or

manage chance finds.

35

CHAPTER V: ENVIRONMENTAL AND SOCIAL SCREENING AND

MANAGEMENT

Environmental and social considerations should be envisioned right from the stage of project

identification. In general, projects are identified on peoples' demand, which is a good practice. However,

when environmental and social consequences of implementation of a project are not well thought

through, project implementation can lead to serious environmental and social problems and even failure

of projects. While identifying municipal investments/sub-grants or collecting demands from the public,

possible alternatives should also be foreseen and noted. The PMT will collect information on the

environmental and social setting; possible beneficiaries and possible environmental and social impacts

of each alternative should also be taken from the sub-grant proponents. The proposers/demand

providers and general public should be made aware of the environmental and social consequences

during implementation and should be requested to choose environmentally and socially acceptable

projects right from identification to avoid environmental and social problems at later stages in PURP.

5.1 Environmental & Social Screening

Every municipal investment and sub-grant proposal to be funded under the PURP will be subject to an

environmental and social screening process before it is selected for inclusion in the project. The

screening process will help establish the level of environmental and social assessment required and will

apply the exclusion criteria presented in Section 1.6. The screening process intends to identify possible

environmental and social concerns relevant to the municipal investments/sub-grants as well as suggest

any further investigation and assessment, if necessary. The sub-grant applicants will fill in a screening

form with assistance from the PMT for activities funded under the Pro-poor Community-based Initiatives

Grant Window and the Pro-poor Business Development Grant Window. The PMT will carry out the

environmental and social screening for the municipal investments implemented under the Pro-poor

Municipal Investments and Initiatives Grant Window.

5.2 Safeguard Categorization of Municipal Investments and Sub-grants

Primarily, the environmental and social screening exercise will be undertaken to determine the key

environmental and social issues/concerns and the nature and magnitude of the potential impacts that are

likely to arise on account of the proposed municipal investments and sub-grant interventions. The major

or key environmental and social issues to be identified will be determined by the type, location, sensitivity

and scale of the municipal investment and sub-grant intervention. The results/findings from this exercise

are/will be used to determine the:

Need for detailed assessment;

Extent and type of Environmental Assessment (EA) required;

Possibility of exclusion of indigenous people and vulnerable communities.

The screening result will also be an important input for analyzing the ‘feasibility’ of the municipal

investments and sub-grant interventions along with engineering/economics and social criteria.

Screening of the municipal investments and sub-grant interventions will be done based on the prevailing

legal requirements to determine whether the activities are subject to, with respect to environmental

issues: (a) GoN's IEE (Initial Environmental Examination); (b) EIA (Environmental Impact Assessment);

36

(c) No-EA (Environmental Assessment) processes; or require (d) only EMP or the code of practices. Any

municipal investment and sub-grant requiring Environmental Impact Assessment (EIA) – which will be

known after screening – cannot be supported under the PURP. With respect to social issues, the

screening will help determine: (a) the need for conducting SIA (Social Impact Assessment); (b)

preparation of a RAP (Resettlement Action Plan); (c) scope and nature of Indigenous People-Vulnerable

Community Development Framework; and (d) Gender Development Framework. Screening will also help

determine whether municipal investments and sub-grant proposals should not be included at all for

funding under PURP should they be found to fall under the ‘negative’ list or ‘exclusion’ criteria set forth in

this ESMF.

Flow of Safeguard Categorization for PURP Activities

The Environmental Protection Act (EPA)/Environmental Protection Regulations (EPR), 1997 of GoN

defines the projects which falls under IEE and EIA category as per Annex 1 and Annex 2 of EPA.

5.2.1 Category I : Municipal investments and sub-grant interventions

Activities requiring IEE based on legal requirements and potential environmental and social risks (basis

as per Environmental Protection Act/Regulations 1997 of GoN)17

.

Threshold environmental criteria for municipal investments/sub-grants requiring IEE are identified on the

basis of the Environment Protection Act and Regulations 1997 as well as based on potential short-to-

long-term adverse environmental and social impacts and their sensitivity. The PURP sub-grants requiring

IEE should follow the schedules of EPA/EPR 1997. Each project requiring IEE should have the

respective assessment done prior finalizing Detailed Project Report (DPR). Such municipal

investments/sub-grants should prepare Environment Management Plan (EMP) for approval. An IEE

report will be prepared. In addition to thresholds defined by government regulation, potential adverse

impacts and environmental sensitivity will be duly considered while conducting the IEE study and writing

IEE report. The TOR for the IEE as well as the IEE report needs approval by the concerned ministry

17

Civil works requiring EIA are excluded from this project.

Screening of Municipal Investments and Sub-grants

Interventions

Activities Requiring

Code of Practices

Activities Requiring EMP Activities Requiring IEE Activities requiring EIA

(excluded from PURP)

Monitoring and Reporting

37

(MoUD)18

. The IEE report will have a built-in EMP which will fully describe appropriate preventive and

curative mitigation measures and their implementation procedures. The environment experts of the PMT

formed at LSMC will be responsible to ensure that safeguard requirements are met. The process for

conducting IEE is shown in a flow diagram in Annex 1. For municipal investments and sub-grants

requiring IEEs, construction work will start only after the approval of IEE by the concerned ministry.

5.2.2 Category II municipal investments and sub-grant interventions

Municipal investments and sub-grants which do not require IEE, but may have some minor to moderate

degree of environmental and social impacts.

Such municipal investments and sub-grants require EMP. The format and table of content for preparing

EMP is included in Annex 2. The following process will be followed to prepare the EMP:

Phase I: Preparation of EMP. The EMP is an overall plan, which addresses the minor to moderate

safeguard issues arising from implementation of the municipal investments and sub-grants and suggests

a strategy and action plan to mitigate the adverse environmental and social impacts and enhance the

beneficial impacts of the interventions. The EMP for a municipal investment or a sub-grant consists of

the set of mitigation, monitoring, and institutional measures to be taken during implementation and

operation to eliminate adverse environmental and social impacts, offset them, or reduce them to

acceptable levels. The plan also includes the actions needed to implement these measures. An EMP is

required for all category II municipal investments and sub-grants interventions under PURP.

The EMP includes:

Site Specific EMP Activity Schedule, including cost for implementation of mitigation measures.

Site Specific EMP Monitoring Schedule, including monitoring responsibility delineation.

Cost Estimate for EMP Monitoring. This can include cost required for capacity building and training

activities basis as required.

The PMT will prepare the EMP for category II municipal investments and sub-grants. Sub-grant

applicants will be responsible for preparing the EMP with support from PMT and PSC. PMT will be

responsible for preparing the EMP for category II municipal investments with support from PSC.

Phase II: Approval of site specific EMP and Inclusion of site specific EMP Provisions in

Designs/Estimates After preparation of the EMP report, it has to be endorsed by PMT (subject to review

and clearance from the World Bank as described in Section 5.2.4). After its approval the provisions of

the EMP need to be included in the municipal investments and sub grant interventions’ designs and

estimates before final approval..

Phase III: EMP Implementation Phase. After approval, EMP provisions along with the municipal

investments and sub grant interventions ‘designs/estimates shall be implemented along with construction

works. The responsibility of overall EMP implementation as well monitoring implementation for the

category 2 sub-grant interventions shall lie with PMT.

18

The Initial Environmental Examination (IEE) shall be approved by the concerned ministry, i.e the project related to

energy is approved by the ministry of energy, and project related to urban development is approved through the Ministry of

Urban Development.

38

5.2.3 Category III municipal investments and sub-grant interventions

Municipal investments and sub-grant interventions which do not fall into categories I and II shall follow

Codes of best practices during the construction and operation phases.

Environmental codes of practices provide technically specified solutions illustrating the general principles

of environmentally sound and sustainable planning, design and construction. Best Environmental

Practices (BEP) is the knowledge that underpins examples of excellence in environment in carrying out

an activity. BEP provide opportunities for broad applicability and benefit across PURP, helping to

enhance positive impacts and to avoid or lessen adverse or negative impacts. The use of these practices

such as cleanup or infrastructure improvement minimizes health and environmental impacts from the

construction and operation phases of the project, reduces energy consumptions and cost, reduces

GHGs, etc. This environmental code of practices should be applied in conjunction with the standard

technical standards for preparation of designs of civil works. There are generic and project specific best

practices as well. The generic environmental best practices to be followed for PURP municipal

investments and sub-grant interventions are elaborated below:

Solid Waste Management should be based on Reduce, Reuse, and Recycle (3R) principles:

Generation of solid, semi-solid and liquid waste requires proper on site management19

and scientific

disposal.

As there are settlements around the project area, no or few nuisances to the community should be

produced. Examples include use of less noisy equipment and no work during night hours as well as

adoption of Environmentally Sound Technologies (energy efficient system design, selection of less

polluting technology) in civil construction.

Health and Safety Standards (e.g., use of personal protective equipment, use of safety signs) should

be adopted in construction activities, and in activities related to manufacturing and promotion of

handicrafts.

Environment, Health, and Safety (EHS) related orientation and job specific training should be

provided to employees.

Adherence to GoN Rules, Regulations, Policies and World Bank policies, and compliance with

formats and checklists developed by ministries.

Correction of shortcomings, periodic review meetings, clear assignment of roles and responsibilities

There should be no or limited impact on local natural resources. In case of impacts, proper mitigation

measures should be devised to address it.

Water and energy management strategies20

should be in place while selecting activities under

PURP.21

19

On site management pertains to functions that must be performed on the construction premises. Good on-site management will have a number of characteristics, which may vary site to site. Examples are ensuring that construction workers will wear personal protective equipment, clean up after works, safety signs are installed, work sites are fenced, no haphazard disposal of construction wastes take place, etc. As a result of construction, the soil may be displaced from its original locations, which can possibly cause environmental problems in future. This could be managed on site during construction. 20

Civil works, though small in scale, are likely to be undertaken in residential and/or commercial areas. Disturbance to water supply lines and electricity as well as increased demand for water and electricity during construction are possible. These risks may be avoided, minimized, or managed through specific strategies and measures. Creating a culture at the construction sites that works to change workers’ attitudes and behaviors to accept ownership of water efficiency is fundamental to improving the use of water in an efficient manner. Good housekeeping can assist construction site reduce their overall water use. Storm water runoff from construction activities can also significantly impact water quality. As storm water flows over a construction site, it picks up sediment, debris, chemicals, and other pollutants. Polluted storm water adversely impacts drinking water sources. Day-to-day operational control of project activities is essential for ensuring compliance with storm water pollution requirements. Protection of waste water pits is a good example of operable mitigation measures. 21

The PURP assisted construction activities should focus on: (i) reducing materials consumption and wastage; (ii) increasing re-use and recycled content using products / resources with lower embodied carbon and embodied water, and

39

Environmentally friendly technologies and environmental conservation measures like tree plantation,

awareness raising in environmental (including cultural and archeological) should be promoted.

Information dissemination and public consultations should be an integral part of all activities under

PURP.

The generic Environmental Codes of Best Practice can be adapted to certain types of Category III sub-

grants. The Codes of Best Practice will be included in the clauses of the contractual agreements. These

will be modified and improved and revisions will be made during project implementation phase as

needed.

5.2.4 The Roles and Responsibilities of the World Bank

The role of World Bank is to ensure that the PURP is in compliance with GoN and World Bank

requirements. For this purpose, Initial Environmental Examination (IEE) reports and EMPs of each sub-

grant/activity and EMP will be reviewed and “no objection letter” shall be provided by the World Bank

prior to start implementation. For activities, which require code of best practices, PMT can directly

approve.

5.3 Management of Social Safeguards

The key steps for addressing social issues related to the project are the same as the ones designed for

dealing with the environmental issues – screening, assessment and preparation of mitigation plans.

These steps are necessary to identify and address the potential social concerns or impacts of a project

right from the planning stage to its implementation and post-implementation operations.

5.3.1 Social Screening (Including Resettlement Policy Framework, Indigenous People

and Vulnerable Community Development Framework (IP-VCDF), and Gender

Development Framework)

The envisaged activities and scope of PURP are not expected to require SIA (Social Impact

Assessment) or RAP (Resettlement Action Plan). However, there may be short-term impacts on

livelihood and access to facilities and properties of households. Such impacts (if any) shall be mitigated

and well documented.

Since the municipal investments and sub-grants under PURP might create temporary business

disruption, the following types of losses, policy/entitlement frameworks are applicable and hence

discussed below.

Entitlement Matrix Showing Possible Losses in PURP and Entitlements

An Entitlement Matrix (EM) has been developed as per this framework following GoN’s and the World

Bank’s safeguard policies. It outlines various types of losses that could result from project activities.

Temporary business disruption during civil works is the only type of loss that could occur from project

activities that would require compensation. Both permanent and ambulatory vendors will also be eligible

for compensation. Compensation amounts will be based on the principle of replacement value. The exact

value of compensation and replacement cost will be determined after conducting the detailed

no scarcity or source security issues; (iii) reducing energy and water use by enabling energy and water efficiency during construction; (iv) providing alternative supplies of water and energy for, and during construction.

40

measurement survey (DMS) to record the actual impacts of the affected structures, land and/or non-land

assets and census survey of the affected businesses, and families.

41

Types of Loss

Entitled

Persons

Entitlement/Compensation Issues Implementation Procedures Responsibility

Temporary loss of

livelihood, trade,

occupation or

incomes due to

disruption during

construction

Permanent

business

Ambulatory

vendors

For permanent businesses, full closure of the shops during

construction is not expected, although road closures

restricting vehicle access may be expected in some places.

Pedestrian access will be maintained at all times. As a

result, only partial disruption to some businesses is

expected. This resettlement policy makes provision for

compensation for business losses during construction. The

municipality and/or sub-grant recipient will be responsible for

compensating businesses for temporary losses (reduction in

sales) during civil works.

For ambulatory vendors, the business is very small and

generally can easily be temporarily moved from one

location to another. Usually, there are several alternative

areas along the existing roads where they could be

relocated. The vendors’ losses are therefore considered as

minimal. Ambulatory vendors shall be provided relocation

assistance. The LSMC and/or sub-grant recipient will be

responsible for compensating businesses for temporary

losses (reduction in sales) during civil works. There will be

no permanent displacement of ambulatory vendors under

the project

Develop a list of businesses, shops, etc., that will be

affected during civil works

LSMC, in consultation with local communities will decide

on the terms and conditions of calculation of the losses

(e.g., criteria that will be used to calculate the reduction

in sales)

LSMC in consultation with local experts and affected

business owners will determine the compensation prices

Notice about the civil works schedule will be

communicated to the affected businesses, shops, etc.,

35 days prior to the initiation of civil works

A list of ambulatory vendors operating in the sub-project

sites will be developed prior to the start of civil works

Ambulatory vendors will be given 35 days prior notice

prior to the initiation of the construction work

The new location for ambulatory vehicles during the

construction phase will be identified and communicated

to the vendors

Every ambulatory vehicle that will have to be temporary

moved will be given transportation allowance on actual

cost basis

LSMC, Sub-

Grant

Recipients

Loss of access

to public

infrastructure,

common

resources and

facilities

Household

s/Affected

Persons

During construction, access to some public infrastructures

such as community wells, etc., is envisioned. Contractors

and sub-grant recipients will be required to take extreme

care to avoid damaging public structures. In cases where

the loss is only temporarily, an alternate source for those

facilities will be arranged.

A list of public infrastructure, common resources and

facilities will be prepared prior to the start of the civil

works

An alternate source for public facilities will be identified,

arranged and communicated to the project affected

people

In case of permanent damages to the resources and

LSMC, Sub-

Grant

Recipients

42

Types of Loss

Entitled

Persons

Entitlement/Compensation Issues Implementation Procedures Responsibility

facilities as a result of construction works, the affected

parties will be compensated immediately for the

damages incurred and/or the facilities restored

immediately to former conditions.

Loss of standing

crops, trees and

perennial trees

Forest

users’

group/other

groups

concerned

Mitigation measures should be initiated to control erosion

caused by tree cutting, and to stabilize and rehabilitate it

with suitable bioengineering works and vegetation and

should be according to DoF regulations

List of plant and tree species lost and an assessment for

maintaining that kind of vegetation

Compensation for trees calculated on the basis of type,

age, and productive value of affected trees in

consultation of concerned forestry office and locals

Advice from the Department of Forestry will be

requested for necessary action

LSMC and Sub-

grant recipient’s

43

As a reference, the World Bank’s format for social impact assessment, social screening criteria, RAP,

and process for preparation of RAP are included in Annex 3 and Annex 4.

5.3.2 Indigenous Peoples and Vulnerable Communities Development Framework (IP-

VCDF)

This Indigenous Peoples and Vulnerable Community Development Framework (IP-VCDF) is developed

to guide the preparation of municipal investments and sub-grants under the PURP to ensure better

distribution of the benefits of the project activities with a focus on the Adivasi/Janajatis and other

disadvantaged social groups located in areas in which PURP will be implemented. The IP-VCDF is

developed based on the national policies/strategies as well as the World Bank’s Indigenous Peoples

Policy. The principal objectives of the IP-VCDF are to:

Ensure that the project engages in free, prior, and informed consultation with affected communities,

leading to broad community support for the project, with particular attention to vulnerable groups;

Ensure that project benefits are accessible to the vulnerable communities living in the project area;

Avoid any kind of adverse impact on vulnerable communities to the extent possible and if

unavoidable ensure that adverse impacts are minimized and mitigated;

Ensure vulnerable peoples’ participation in the entire process of preparation; implementation and

monitoring of the sub-grant activities;

Minimize further social and economic imbalances within communities; and

Develop appropriate training / income generation activities in accordance to their own defined needs

and priorities.

5.3.2.1 Relevant Policies on Indigenous People and other Vulnerable Communities

Nepal is a signatory to ILO convention on Indigenous and Tribal Peoples, 1989 (No.169). Besides

that Nepal does not have a standalone policy on Indigenous Peoples. However in the Three Year

Interim Plan (TYIP) (2007-2010), or the Tenth Plan, significant emphasis has been placed on delivering

basic services to the disadvantaged and Indigenous People (IPs), women, disabled and vulnerable

communities (VCs) such as Dalits and Adhibasi/Janajati. One of the main objectives of the Tenth Plan is

the implementation of targeted programs for the uplifting, employment and basic security of Dalits,

indigenous people and disabled peoples. The policy provision also outlines that the Government should

pilot strong and separate packages of programsfor the basic security of the vulnerable sections of

society. The Three Year Interim Plan (TYIP) (2007-2010) includes the following policies for inclusive

development of Dalits, Adivasi/Janajatis and other vulnerable groups:

Creating an environment for social inclusion;

Participation of disadvantaged groups in policy and decision making;

Developing special programs for disadvantaged groups;

Positive discrimination or reservation in education, employment, etc.;

Protection of their culture, language, and knowledge;

Proportional representation in development; and

Making the country’s entire economic framework socially inclusive.

The National Foundation for the Upliftment of Adivasi/Janajatis Act, 2058 (2002), the National Human

Rights Action Plan 2005, the Environmental Act 1997, and the Forest Act 1993 have emphasized

44

protection and promotion of vulnerable groups in general, IPs’ knowledge, and cultural heritage in

particular. In 1999, the Local Self-Governance Act was amended to give more power to the local political

bodies, including authority to promote, preserve, and protect the IPs’ language, religion, culture, and their

welfare.

The World Bank policy on indigenous peoples emphasizes the need to design and implement projects in

a way that fosters full respect for indigenous peoples’ dignity, human rights, and cultural uniqueness and

so that they:

Receive culturally compatible social and economic benefits; and

Do not suffer adverse effects during the development process.

5.3.2.2 Screening and Categorization of Impacts on IPs and VCs

These steps will be followed to assess impacts on IPs and VCs, which additionally require free, prior,

and informed consultation:

1. A social assessment will be carried out for the entire project at the beginning of the activities as part

of the pro-poor participatory planning process (component I).

2. Then a social screening will be carried out to determine whether IPs and VCs will be affected by the

activities as part of the environmental and social screening for the municipal investments and sub-

grants carried out at the identification stage.

The screening will involve identifying IPs and VCs belonging to the area where the municipal

investments and sub-grant interventions will be undertaken, their population (number and ratio), and their

characteristics as compared to the main population in the project area through primary and secondary

data collection.

The social screening will provide the necessary information to determine impact including: (i) the

beneficiary population living within the impact zone of the municipal investments and sub-grants (ii) the

extent of land required (even temporary) and number of land owners affected (if applicable); (iii) impacts

on poor and vulnerable groups including needs and priorities for social and economic betterment; and

(iv) other social impacts.

The screening report will also provide information about the potential damage / loss of common

community structures such as: water tanks and pipes, religious cultural monuments / sites, inner urban

roads, etc.

Municipal investments and sub-grants will be categorized according to the level of impacts on IPs and

VCs. The categorization will be determined by the type, location, scale, nature, and presumed magnitude

of potential impacts on IPs and VCs. The municipal investments and sub-grants will be categorized as

per the following table:

Table 4. Categorization of Impact on IPs and VCs for Sub-grants

Category Determination of the type of Social Assessment Needed

45

Category A Municipal investments and sub-grants expected to have significant impacts22

that require an

Indigenous People (IP)/Vulnerable Community Development Plan (VCDP)

Category B Municipal investments and sub-grants expected to have limited impacts that require specific

action for IP/ Vulnerable Groups in resettlement plans and/or social action plans

Category C Municipal investments and sub-grants not expected to have impacts on IP/ Vulnerable

Groups and, therefore, do not require special provision for IP/ Vulnerable Groups

The IP-VCDP Impact Screening & Categorization Form is presented in Annex 6. Based on the

categorization for screening impact, sub-grant specific and municipal investment specific IP-VCDPs will

be prepared as per the guidelines and sample IP-VCDP provided in Annex 7. In case of significant

impacts (falling in categories A and B) on IPs and VCs, the PMT will submit the IP-VCDP to the World

Bank for clearance. An IPP would be required irrespective of the magnitude of impact on IPs, with the

guidelines for preparing IPPs included in the Annex 6. Short IP-VCDPs prepared as a part of ‘less

impact’ or ‘no impact’ category will be internally evaluated. The World Bank will periodically review and

do random review of these documents.

5.3.2.3 Specific Measures to be followed while dealing with Indigenous People and

Vulnerable Groups

Specific measures for vulnerable groups including indigenous peoples, Dalits, minor ethnic communities,

women, and powerless communities are outlined below:

Ensure awareness raising, active participation and capacity building of the vulnerable communities

Ensure participation in awareness campaigns, project implementation and monitoring of vulnerable

groups

Ensure equal wages for similar work during implementation

Launch project information campaign to inform the target groups about the key features of the project

and the municipal investments and sub-grant interventions implemented under the project.

Asses and analyze the presence of indigenous and Dalits in the areas where municipal investments

and sub-grants are implemented

Provide preferential treatment and support to indigenous people, Dalits and other vulnerable

communities

Involve IPs, Dalits and vulnerable groups in beneficiary groups as needed to increase their

participation.

Ensure the identified needs and priorities of vulnerable people are taken into account in the

municipal investments and sub-grant interventions

Conduct project related meetings in indigenous and vulnerable community areas to encourage their

participation. Ensure a quorum which includes representation from IP groups.

Encourage sub-grant interventions providing targeted assistance/training aimed at vulnerable groups

to enhance livelihoods and participation

Build capacity of indigenous peoples, Dalits and other vulnerable communities to promote their

necessary knowledge and skills to participate in the project activities

22

The impacts on IP/ Vulnerable Group will be considered ‘significant’ or Category A if the sub grant positively or negatively:

a) affects their customary rights of use and access to land and natural resources, b) changes their socio-economic status, c) affects their cultural and communal integrity, d) affects their health, education, livelihood, and social security status, and/or e) alters or undermines the recognition of indigenous knowledge.

46

Encourage development of capacity through trainings on skill enhancement (handicrafts, etc.) of

local people as part of the sub-grant interventions.

5.3.2.4 Framework for Developing Gender Development Framework

Mainstreaming gender equity and empowerment is a focus area in the project. The Gender Development

Framework (GDF) outlines the specific gender issues and the corresponding strategies and activities

which will be given due consideration under PURP. This will ensure women’s participation and benefits

from project activities. The major tools used to identify and deal with gender issues are: gender analysis,

incorporation of gender issues in municipal investments and sub-grants interventions, and gender-

sensitive consultations.

Gender analysis will be an integral part of the initial social assessment, carried out by the PMT and sub-

grant proponents respectively with the support of the PSC as part of the safeguard screening of the

municipal investments and sub-grant intervention preparation. . The gender analysis will identify issues

related to gender disparity, needs, constraints and priorities. Disaggregated data on beneficiaries based

on gender (in particular female-headed households) will also be collected and monitored.

The project activities would be developed to be gender responsive based on the findings of the gender

analysis. Agreed actions will be included in the design of the municipal investments and sub-grant

interventions by the PMT and sub-grant recipient respectively to outline how gender concerns will be

addressed throughout the project and ensure measures are taken to maximize gender-related benefits.

The findings and recommendations from the gender analysis carried out at the screening stage and

feedback on gender issues from beneficiaries during implementation will be regularly monitored by the

PSC to determine the need for further action.

The PSC will include a social specialist with prior experience incorporating gender considerations into

project design and implementation. The PSC social specialist will be responsible for carrying out gender

sensitization and awareness campaigns and related training to the PMT, ward authorities and sub-grant

recipients. The awareness raising and technical assistance costs are estimated of the order of USD

50,000-100,000 depending on the nature of the municipal investments and sub-grants identified for

implementation. The costs of the actions required to maximize gender-specific benefits are unknown ex-

ante given the demand- driven nature of the municipal investments and the grant facility.

5.3.2.4.1 Gender Development Framework

The suggested Gender Development Framework for the project is presented below:

Gender

Issues Strategy Proposed Activities

Responsible Party

Lack of awareness

Awareness campaign

about the project for the

communities focusing on

the vulnerable groups

including women.

Formation of women’s groups around

specific interventions as required.

Share information about the project

benefits in Nepali language.

Ward authorities with support

from PMT/PSC

Excluded from

Opportunities

Gender sensitization to all

stakeholders including

PMT.

Ensure Women’s

participation during

meetings, project

Carry out meetings and interaction

program with and orientation to women

in the project area.

Ensure representation of women in the

grievance redress committee.

Prepare clause to be included in civil

PMT/PSC, all components

PMT/PSC

PMT/PSC, component 2

47

Gender

Issues Strategy Proposed Activities

Responsible Party

implementation and

monitoring.

work contract documents to prevent

discrimination in employment on the

basis of sex, caste, religion and

ethnicity.

Conduct leadership training for women

members of commodity groups in the

project area.

PMT/PSC, component 3

Disparity in Wages Accord priority

employment to women in

construction activities

under the project.

Promote equal wages for

equal work

Inform women groups regarding

proposed construction works.

Identify women interested to work;

assess their skills and involve them

as per their capabilities.

Monitor women’s wage rate and do

the needful to ensure wage equality

for similar type of construction

works.

Inclusion of the above elements in

the contractors’ documents.

PMT/PSC

48

5.4 Process for Managing Environmental and Social Impacts

This ESMF proposes measures to minimize and mitigate environment and social impacts of the project

activities. Proper integration of the findings from the safeguard studies and public consultations into the

planning/decision-making process and engineering outputs (design and bidding documents) will be

essential to avoid/reduce the environmental and social issues that may arise due to the project. To

ensure that the municipal investments and sub-grants do not cause any significant adverse impacts, a

safeguard screening process will be established. In case significant impacts are likely to occur, the

municipal investments and subgrant/s will require environmental and social assessment and preparation

of mitigation/management plans. The key steps for managing any potential adverse impacts are outlined

in the table below: a) for civil works carried out under the Pro-poor Municipal Investments and Initiatives

Window; and (b) for civil works carried out under the Community-based and the Pro-poor Business

Development initiatives.

Table 5. Key Steps for Managing Environmental and Social Issues (Pro-poor Municipal

Investments and Initiatives Window)

Stages in

Sub-grant Cycle Steps in the Assessment Process

Identification of municipal

investments

PMT/PSC to carry out Environmental and Social Screening to determine key potential

safeguard issues.

PMT/PSC to carry out field verification to determine whether exclusion criteria have been

adhered to.

Project Design

(for works that only require

EMP)

PMT/PSC to consult with key stakeholders

PMT/PSC to prepare Environment Management Plan for municipal investments not requiring

detailed assessment (Category II projects) in parallel with detailed engineering design phase

PMT/PSC to ensure integration of the EMP into the Bidding Documents (if works are carried

out by contractors)

Project Design

(for works that require

detailed assessment, i.e

IEE)

Since works requiring

EIA are included in the

exclusion criteria for

PURP, EIA details are

not mentioned here.

PMT/PSC to prepare ToR to carry out Initial Environmental Examination (IEE)to determine

level and scope of EA. PMT/PSC will do it. ToR for IEE and IEE should be approved by

relevant line ministry (MoUD). Preparation of IEE to include steps listed below

Baseline Data Collection: Identification of environmental and socio-economic

conditions.

Environmental Impact Prediction/Assessment : Assessment of impacts in terms of

characteristics such as magnitude, extent, duration and significance in quantitative

terms as far as possible; describing all reasonable alternatives, including preferred

and ‘no project’ options.

Mitigation Measures Design: Design to avoid, reduce and minimize adverse

environmental impacts and enhance beneficial impacts

Public Consultation and Participation: At various stages in the assessment process

to ensure quality, comprehensiveness and effectiveness of the stakeholders’

participation and to adequately reflect/address their concerns.

Preparation of Environmental Management Plan (EMP): Determination of specific

actions to be taken during engineering design and construction stages to minimize

or mitigate negative impacts and enhance the positive impacts.

Report Preparation: Summary of all information obtained, analyzed and interpreted

in a report form; also include a non-technical summary including methods used,

results, interpretations and conclusions made.

IEE should incorporate physical, chemical, biological, social, economic and cultural

aspects/environment.

49

Similarly, the key steps for managing any potential adverse environmental and social impacts for sub-

grant activities under the community based initiatives and pro-poor business development initiatives

windows applicable (only for works) are outlined in the table below:

Table 6. Key Steps for Managing Environmental and Social Issues (Community Based Initiatives

and Business Development Grant Window)

Approval of municipal

investments

PMT/PSC to review and approve Technical and Safeguard Report/s (for IEE review

and approval will be through MoUD; IEEs also need to be submitted to the Bank for

No Objection). The Review of report/s to assess whether potential issues have been

adequately addressed to facilitate the decision-making process- decides if project

should proceed, or if further-alternatives must be examined or totally abandoned.

Integrate EMP or IEE into engineering design and bidding documents if works are to

be carried out by contractors.

Implementation

PMT/PSC to orient / train the Contractor/Users Committee and other field staff on

EMP/IEE requirements.

PMT/PSC to supervise, monitor EMP and IEE compliance (if contractor is used,

environmental and social clauses should be part of bidding documents. Monitoring

by the supervising engineer/or LSMC/or by other related entity should be

mentioned)

PMT/PSC to take corrective actions, as and if necessary

Post-Construction LSMC staff to carry out post-construction operations and maintenance in line with

EMP/IEE. the concerned department of municipality

Stages in

Sub-grant Cycle Steps in the Assessment Process

Sub-grant calls for

proposals

PMT to issue calls for proposals specifying eligibility requirements, as well as including a list

of excluded activities. The call for proposals will include sub-grant application form and

safeguard screening checklists (Project Operational Manual (POM) Annex 2 and ESMF

Annexes 4-6).

Sub-grant Identification &

proposal screening stage

Sub-grant applicant to carry out environmental and social screening to determine key issues

and appropriate selection of site with support from the PMT/PSC; the screening will be

integral part of the sub-grant application to be submitted to the PMT.

PMT/PSC to carry out field verification in collaboration with the sub-grant applicant to

determine whether exclusion criteria as specified in the calls for proposals have been

adhered to.

Sub-grant preparation

(for sub-grant that do not

require detailed

assessment, i.e. only

require EMP)

Sub-grant recipient to carry out consultations with key stakeholders.

Sub-grant proponent responsible for carrying out EMP for sub-grant not requiring detailed

assessment (Category II projects) following approval of the proposal and before the signing

of the grant agreement. The PMT/PSC will provide technical and financial support to the

sub-grant recipient with the preparation of the EMP.

Project Design

(for sub-grant that require

detailed assessment), i.e

for IEE

Since projects requiring

EIA are included in the

exclusion criteria for

PURP, EIA details are

not mentioned here.

The grantee will be responsible for delivering the IEE following approval of the proposal and

before the signing of the grant agreement with LSMC to determine level and scope of EA.

The PMT/PSC will provide technical and financial support to the grantee with the preparation

of the IEE. ToR for IEE and IEE should be approved by relevant line ministry (MoUD).

Preparation of IEE to include steps listed below

Baseline Data Collection: Identification of environmental and socio-economic

conditions.

Environmental Impact Prediction/Assessment: Assessment of impacts in terms of

characteristics such as magnitude, extent, duration and significance in quantitative

50

terms as far as possible; describe all reasonable alternatives, including preferred

and ‘no project’ options.

Mitigation Measures Design: Design to avoid, reduce and minimize adverse

environmental impacts and enhance beneficial impacts.

Public Consultation and Participation: At various stages in the assessment process

to ensure quality, comprehensiveness and effectiveness of the stakeholders’

participation and to adequately reflect/address their concerns.

Preparation of EMP: Determination of specific actions to taken during engineering

design and construction stages to minimize or mitigate negative impacts and

enhance the positive impacts.

Report Preparation: Summary of all information obtained, analyzed and interpreted

in a report form; also include a non-technical summary including methods used,

results, interpretations and conclusions made.

IEE should incorporate physical, chemical, biological, social, economic and cultural

aspects/environment.

Sub-grant safeguard

assessment approval

PMT/PSC to review and approve Safeguard Report/s (for IEE review and approval

will be through MoUD). The review will aim to assess whether al l potential safeguard

issues have been adequately addressed to facilitate the decision-making process,

and decide whether the sub-grant should proceed, or if further-alternatives must be

examined or totally abandoned.

Sub-grant proponents to integrate EMP into engineering design and bidding

documents with support from PMT/PSC. Approval of safeguard assessment is a

condition for signing the sub-grant agreement. The EMP/IEE is integrated into the sub-

grant agreement between the municipality and the sub-grant recipient.

Implementation

PMT/PSC to orient/ train the sub-grant recipient and other field staff on EMP/IEE

requirements.

Sub-grant recipients to monitor and regularly report on EMP/IEE compliance with

support from PMT/PSC.

PMT/PSC to carry out regular field verifications and take corrective actions, as and

if necessary.

Post-Construction Sub-grant recipients to carry out post-construction operations and maintenance in

line with EMP/IEE with support from the PMT/PSC.

51

CHAPTER VI: INFORMATION AND CONSULTATION FRAMEWORK

The information and consultation framework is intended to lay out the way in which information will be

provided to the project implementers and beneficiaries and also how consultations will be held during

PURP implementation. Its purpose is to ensure social and environmental issues are effectively

addressed by the project in a transparent and participatory manner. The primary responsibility for the

implementation of information and communication strategies lies with the PMT. The details are

elaborated below.

6.1 Information and Consultation Framework for Municipal Investments and Sub-

grants of PURP

Effective public consultation will be needed from the earliest (planning) stages of the project. Input from

relevant stakeholders will be essential especially during the identification of municipal investments, sub-

grant proposal preparation, and implementation phases of the municipal investments and sub-grants.

6.1.1 Identify and Analyze Potential Stakeholders to Understand their Interest and

Needs

Each stakeholders group plays a distinct role in the planning and implementation of the municipal

investments and sub-grants. The comprehensive participatory consultation process therefore needs to

be undertaken at the start of the process to identify all potential project stakeholders, as well as their

specific areas of interest and their specific needs. Stakeholders’ identification and analysis need to

continue throughout the project cycle and remain dynamic. The relevant types of stakeholders are the

following:

Users and beneficiaries of the municipal investments and the sub-grants;

People likely to be adversely affected by the municipal investments and sub-grants, directly or

indirectly, in any way;

Poor and vulnerable groups, women groups, and professional/occupational groups;

Government agencies, and government officials at national, regional, and ward level;

National and international non-government organizations and donor agencies, community based

organizations and community leaders.

6.1.2 Engage Stakeholders Systematically Throughout the Design and

Implementation Stages

Communication and consultations should include, but not limited to, the identification and record of the

following:

Based on the stakeholder analysis, stakeholder groups to be engaged in participatory processes;

Specific decisions being made through participation, and how;

Anticipated breadth and depth of stakeholder engagement at each stage of the project cycle;

How will participation be linked to social and gender strategy, management plans, resettlement

planning and other national and safeguard requirements;

How will participation be used during implementation;

What participation methods will be used, including timeline, sequence and roles and responsibilities

for participatory activities.

52

Important aspects of the communication strategy include communication objectives; challenges and

obstacles to achieving these objectives; target audiences; nature of communication messages;

communication channels; and aspects required for successful implementation of the strategy such as

timelines, responsibilities and resources.

All communication products targeting communities and their representatives including civil society

groups and ward officials should be available in languages appropriate and understandable by the target

audience.

6.1.3 Inform Stakeholders and Accountability Mechanism

Participation is central to the safeguard policy statements and will be facilitated, as and if required, in the

project wards by PMT/PSC. Specific participation requirements related to the IPs such as broad-base

indigenous consent (OP 4.10) need to be observed. Participation needs to be gender inclusive and

responsive, and tailored to the needs of disadvantaged and vulnerable groups.

6.2 Present Status of Consultations Completed at PURP

6.2.1 Consultations during Prefeasibility Study and Preparation of ESMF

Consultations with key stakeholders have been an integral part of the ESMF preparation. During the

preparation of ESMF, a series of consultations was held at the LSMC and the four PURP recipient wards

namely 16, 18, 21, 22. The details are as follows:

Dhapagal, Ward no 16, LSMC- 26 April, 2013

Ward office, Ward no 21, LSMC- 28 April, 2013

AlokHiti, ward no 22, LSMC, 29 April 2013

Kayagunani, ward no 18, KSMC, 29 April, 2013

The participants at, and outcomes of the consultation meetings are presented in Annexes 8 and 9,

respectively. Such type of consultations, workshops, and interactions shall be continued during the

PURP implementation cycle. This type of consultations will be the forum for sharing information about

the project’s objectives, scope, alternative design options, and stakeholders’ perspectives regarding

PURP.

6.2.2 Modes of Future Consultations

A range of formal and informal consultative methods will be carried out for all municipal investments and

sub-grants including, but not limited to: focus group discussions (FGDs), public meetings, community

discussions, and in-depth and key informant interviews; in addition to the socio-economic surveys

required as part of the project M&E framework. Consultations will be held with special emphasis on

vulnerable groups. Encouraging public participation in consultations informs the public and serves as a

venue for the public to express their opinion on priorities which the Project should address.

The key stakeholders to be consulted during municipal investments and sub grant preparation, RP/IP&

VCDP implementation, and program implementation include:

All Affected Persons (APs,) including vulnerable households;

Project beneficiaries;

53

Political party representatives, community leaders, and representatives of community based

organizations;

Representatives from recipient wards;

Local NGOs;

Officials of LSMC and relevant government agency representatives.

In the local cultural and social set up women do not play an active part in decision-making regarding

municipal services and their standards, although women with relatively higher awareness level (e.g.,

social mobilizers, GoN employees, health workers, teachers, etc.) manage to express their concerns.

Ideally separate meetings will be held for women, but if it will not be possible to held separate meeting

with women, women will be consulted through CBOs or NGOs,

The PMT will ensure that views of APs, particularly those who are vulnerable, related to the project are

looked into and addressed. The PMT will ensure that APs consulted are informed of the outcome of the

decision-making process, and will confirm how their views were incorporated.

6.3 Information Disclosure and Dissemination

This ESMF will be made available in Nepali language to PURP recipient wards namely 16, 18, 21, 22 of

LSMC. Copies of these documents will be provided to any requester by charging the photocopy cost.

The draft and final ESMF will be disclosed in the websites of LSMC and made available to wards.

Information dissemination and consultation will continue throughout program implementation.

For all municipal investments and sub-grants, information will be disseminated to wards at various

stages. In the initial stage, the LSMC will be responsible for informing potential wards and the general

public of the project about the components of the project through leaflets and publication in local media

outlets and newspapers. The PMT will conduct consultations and disseminate information to all APs

during these initial stages to create awareness of the project.

54

CHAPTER VII: GRIEVANCES REDRESS MECHANISM

Through a participatory process, grievances are expected to be minimized. However, it is necessary to

establish an effective grievance redress mechanism to address complaints/grievances that may arise

related to the project in general including but not limited to environmental and social issues. Any

grievances and objections will be referred to the project Grievances Redress Committee (GRC).

The structure of GRC shall be as follows:

1. CEO of LSMC, Chairman of GRC

2. Project Manager, PMT; Member secretary of GRC

3. Representative from project beneficiaries, member of GRC

4. Representative from Kathmandu Valley Development Authority (KVDA), member of GRC

5. Representative, District Administration Office, Lalitpur, member of GRC

The GRC needs to be established as soon as the project is effective. The representative from project

beneficiaries will be nominated by the chairman of the GRC for a period of one year. A complaint cell will

be established under the PMT to collect complaints and transmit them to the GRC. The affected

persons/communities can register their grievances through multiple ways including locked boxes at the

project office that can only be opened by a designated person, email, a designated telephone number,

and submission of complains at the wards etc. The affected persons can also register their grievances at

the complaint cell established at LSMC. Any affected family or person can approach the GRC directly

regarding issues related to environmental and social issues including temporary impacts and impacts

during construction. Handouts providing details of the structure and process for redressing grievances

will be distributed in the project area through the ward offices. All cases will be registered, categorized

and prioritized by the complaint cell. The GRC will meet in a monthly basis to discuss the petitions

submitted by the people/community. If any member (including CEO) is concerned, then the grievances

will be forwarded to the Steering Committee secretariat (KVDA). The GRC will be regularly supervised by

the World Bank, including reviews of documentation.

55

CHAPTER VIII: MONITORING AND EVALUATION

8.1 Monitoring and Evaluation

A Monitoring & Evaluation (M&E) system will be established for the project, and safeguard compliance

will be integral part of the project M&E. Both an internal and periodic external monitoring is proposed to

ensure ESMF implementation. Internal monitoring will be carried out by the PMT, focusing on outcomes,

outputs and implementation progress for each municipal investment or sub-grant. The sub-grant

recipients will submit to the municipality regular sub-grant progress reports during implementation.

Similarly periodic external monitoring with external review using quantitative and qualitative methods

shall be followed. The ESMF evaluation will be mid-term and end term and both have to be third party

evaluation.

The table showing indicators, methods, and responsibilities for social and environmental safeguard

monitoring in PURPPURP is highlighted below. The frequency will be decided by PMT as needed.

Responsibility of Monitoring: The environmental and social expert of PMT is responsible for internal

monitoring of ESMF. The mid-term and end term monitoring shall be done by external experts.

Indicators Methods Responsibility

Number of businesses /households temporarily disrupted

Review report, on the group field verification

PMT /PSC

Adherence to ESMF requirements Review of report, direct observation PMT /PSC

Adherence to mitigation measures (social and environmental)

Review of report, field verification PMT /PSC

ESMF requirements incorporated in tender and bidding documents as needed

Review of tender/contract document PMT/PSC

56

CHAPTER IX: CAPACITY BUILDING

Since Lalitpur Sub-metropolitan City does not have direct experience with the implementation of World

Bank-funded projects, the ESMF has included capacity strengthening measures.

9.1 Training

Training is an important component for developing capacities. Appropriate and timely training to the

officials with regard to various issues can bring a positive change in the functioning of the staff. Apart

from training in generic areas such as human resource management, information management,

government functionaries require training in handling certain specialized tasks pertaining to

environmental and social issues. The PMT will identify the training need assessment at LSMC and

suggest the training packages including their modality of operation.

Potential training areas are:

Earthquake resistance design of traditional buildings

Hazards of crafts works

Orientations on ESMF

Orientations on legal requirements

Preparing EMPs and ECOPs

General Introduction to EA and Management

9.1.1 For Environment and Social Officer of LSMC

Training on Environmental Assessment, Appraisal and Management, Social Safeguard and Issues

The environmental and social officers of LSMC would require capacity building inputs to help them

understand the environmental risks associated with PURPPURP sub-grants and the appropriate

measures that can be taken to mitigate adverse impacts on the community. In addition, they would

require training to equip them with skills they can use to appraise sub-grants on key environmental

criteria and ensure that they are environmentally sound. Environmental assessment and management

training should also be provided to them.

9.1.2 For Municipal Staff

Training related to environmentally sound technologies, tools and techniques for conducting

environmental surveys. Trainings on EAs, EPA/EPR requirements, and requirements stipulated by

sectoral legislations shall be provided during the trainings.

Training on Environmental and Social Assessment of PURPPURP sub-grants will enable the municipal

staff to understand the environmental risks attached to different sub-grants and the appropriate

measures that can be taken to mitigate adverse impacts on the community. This would not only enable

them to prepare environmentally sound sub-grants but also help them put in place strong monitoring and

management plans.

57

9.2 Training on Preparing Communication Strategies

A well-developed communication strategy needs to be in place to realize better results in implementing

the projects. The PMT will have to develop and effectively implement their own consultation and

communication strategy. Successful implementation of sub grant would depend, to a large extent, on the

ability to maintain close contact with the community in the sub-grant area. For this purpose the PMT

needs to develop consultation plans along with the help of recipient wards. Such a communication

strategy would help in better communication, clearer understanding of social problems, better service

delivery, easier conflict resolution and grievance redress. Training modules may be developed to help

municipalities draft and implement appropriate consultation strategies. Experts from the PSC will assist

the PMT in preparing this training.

58

Annex 1: Steps and Requirements for IEE Studies for PURP

DE

SK

ST

UD

Y

E SK

S

T

UD

Y

Task 4:

Fifteen days Public Notification in

National daily Newspaper as per

EPR Rule 7 (2)

Activities:

Notice publication

Responsibility: Client/Consultant

Task 2:

Preparation of ToR Submission to concerned

ministry (MoLD) as per EPR- Rule 5 (1)

Activities:

Review and assessment of environmental baseline

Preparation of Terms of Reference

Submission to MPPW through the client

Responsibility: Consultant/Client

Deliverables: ToR Document

Task 3:

Review and approval of ToR as per

EPR Rule 5 (3)

Activities:

Review by the client as applicable with recommendations

Presentation to concerned ministry by client

Review by ministry and approval with or without modifications

Responsibility: Ministry / Client

Deliverables: Approved ToR

Task 1: Collection and Review of Project Baseline data

(EPR, Rule 5, Rule 7 and schedule 5, IEE Guidelines)

Activities:

Collection and review of project related sectoral legal documents, institutional arrangements and capacities

Collection and review of project documents, layouts, magnitude of operations and considered alternatives

Collection and review of topography, geology, forest, soil, geomorphology maps

Collection and review of the physical, biological and socio-economic and cultural and archeological baseline environmental conditions.

Identification of data gaps and study focus areas Development of tools for field survey and analysis for

physical, biological and socio-economic environments. Preparation of field survey and mobilization

Responsibility: Consultant/PMT

FIE

LD

ST

UD

Y

I E

L

D

S

T

UD

Y

Task 5: Notice posting, Public Deed of Enquiry and

interaction with client and the Stakeholders as per EPR Rule-

7

Activities:

Public deed of enquiry Meetings with the Client Obtain relevant documents from the client Notification to the stakeholders at local level for issues

of road construction Interaction with key persons Collection of recommendation letters from DDC,

Municipalities and VDC, if any.

Responsibility: PMT/Clint/Consultant

Task 6: Field investigation, interaction with local people and other stakeholders and collection of baseline data as per EPR Rule 7

and schedule 5, IEE Guidelines for all alternative routes.

Activities:

Field investigation on physical and chemical environments using applicable tools (direct observation and mapping, monitoring, public interactions, past history etc) for erosion, sedimentation, landslides, geomorphic processes, land forms, geology, soil, hydrology, meteorology, air, noise, vibrations, land use, water quality, water pollution etc.

Field surveys on biological (terrestrial and aquatic) environments using applicable tools (direct observation and mapping, sampling (plot and specimens), public interaction, past records, questionnaires surveys and interviews with knowledgeable persons etc) for forest types and coverage, vegetation species, aquatic species, rare, endangered, indigenous species, ecological value, biodiversity value, habitat, medicinal plants, etc.

Field investigations for socioeconomic and cultural environment using applicable tools (Rapid Rural appraisal, participatory Rural appraisal, questionnaires, interviews and public consultations, cadastral surveys, social mapping, photographic records etc.) for population and dynamics, social development and institutions, occupation and employment, earning and expenditures, cultural values, indigenous or tribal population etc.

Responsibility: PMT/Clint/Consultant

59

Task 9: Review and approval of IEE as per EPR Rule 11

(1)

Activities:

Review of the IEE study report by concerned ministry

Approval of IEE by ministry with or without modification

Submission of final IEE report by the consultant/PMT to Client with electronic version.

Responsibility: Review and approval by concerned

ministry, report preparation and submission by the

PMT/consultant.

Task 8: Preparation of Draft IEE report and submission as

per EPR Rule 5, 7 and 10 and schedule 5

Activities:

Preparation of Draft IEE reports incorporating all concerns of stakeholders as obtained in the public interaction and recommendation letters from DDCs, Municipalities and VDCs.

Presentation of IEE report and seek comments and suggestions

Submission of Draft IEE report to the client for approval

Responsibility: PMT/Clint/Consultant

Deliverables: Draft IEE Report

Task 7: Data Analysis and interpretation.

Activities:

Alternative assessment with no project, route or section, design and construction approach, time schedule and process, resources, site specific etc.)

Impact prediction, beneficial and adverse impacts, quality of data, key data gaps and uncertainties associated with predictions

Mitigation alternatives to identified the impacts, residual impacts that cannot be mitigated, opportunities for environmental enhancement

Monitoring indicators and methods of monitoring Environmental Management Action Plan: mitigation

planning with details of work programs and schedules, responsibilities, capital and recurrent costs, institutional and training requirement; and Monitoring Planning with details of type of monitoring, responsibility, cost and any other institutional and training requirements.

Responsibility: PMT/Clint/Consultant

AN

AL

YS

IS A

ND

RE

PO

RT

ING

60

Annex 2: Project Environnemental Management Plan (EMP)

(Example of an EMP)

Table of Content For PURP EMP Preparation

CHAPTER: 1

PROJECT DESCRIPTION, Components and Environmental Management Plan

1. Introduction 1.1 Background 1.2 Project Scope 1.3 Project Activities The project activities may be categorized mainly into three phase which are activities in

(i) Design and Bidding Phase (ii) Construction Phase (iii) Operation Phase

CHAPTER: 2 2.1 Scope of Environmental Management Plan (EMP) 2.1 Objectives of Environmental Management Plan (EMP) The basic objectives of the EMP are to: Ensure that all mitigation measures and monitoring requirements will actually be carried out at

different stages of project implementation and operation - pre-construction, construction and operation and maintenance;

Recommend a plan of action and a means of testing the plan to meet existing and projected environmental problems;

Establish the roles and responsibilities of all parties involved in the project’s environmental management;

Describe mitigation measures that shall be implemented to avoid or mitigate adverse environmental impacts and maximizing the positive ones;

Ensure implementation of recommended actions aimed at environmental management and its enhancement; and

Ensure that the environment and its surrounding areas are protected and developed to meet the needs of the local people, other stakeholders and safeguard the interests of the common people.

2.2 Implementation of EMP 2.3 Project Impacts The anticipated impacts due to project in and mitigation measures are mentioned in table 1 attached with this document. 2.3.1 Anticipated Environmental Impacts and Mitigation Measures

61

Environmental impacts on the physical, biological, and socio-economic and cultural environments during the pre-construction, construction and operation and maintenance phases are discussed here in detail with the mitigating measures. The summary of the anticipated environmental impacts and the mitigation measures are given in matrix form attached with this document 2.3.1.1 Pre-construction Phase a. Environmental impacts due to project design 2.3.1.2 Construction Phase a. Environmental impacts due to project construction i. Physical Environment (Examples) Water and land pollution Pollution due to air, noise and vibrations ii. Biological Environment iii. Socio-Economic and Cultural Environment Reinstatement of damaged community services and infrastructure Influx of outside workforce, money and unwanted activities Occupational Health and Safety (OHS) Traffic management 2.3.1.3 Operational Phase 3.0 Mitigation Measures: The mitigation measures shall be designed during the construction and operation phases of the project to minimize the adverse environmental impacts. The mitigation measures along with the item wise mitigation cost are prepared in EMP. Sample a mitigation measure is shown below. The envisaged impacts due to implementation of PURP component could be grouped into positive and adverse impacts. The goal of mitigation measures is to maximize the positive impacts and minimize or reduce the adverse impacts. The proposed mitigation measures for predicted adverse impacts could be grouped into three categories as Physical, Biological, Socio-economic and cultural environment. Such impacts could be further classified as impacts during the construction stage and operation stage. Construction Phase Impacts

Physical Environment

There will not be huge excavation activities during sub project construction. If any valuable archaeological assets are identified it will be managed as per DoA rules and regulation.

S.N Identified Impacts Sample Suggestive Mitigation Measures

1 Impacts associated with management of

excavated materials

The excavated materials shall be used as construction material (as

applicable). The unused materials will be sold to needy, non sellable

items shall be disposed properly in identified areas.

2 Impacts of air pollution (particularly dust) Vehicle speed control and sprinkling of water in road and in

62

S.N Identified Impacts Sample Suggestive Mitigation Measures

and its impacts on surrounding environment construction site in a regular basis. Use of old and worn out vehicles

shall be avoided to control air pollution.

The construction material shall be covered during the transportation

of materials.

3 Impacts related to noise created by the

vehicle used for the transportation of

construction material

Night time construction work shall not be allowed. Vehicle speed

control and maintained vehicle shall be used. Use of old and worn

out vehicles shall be avoided to control noise pollution.

4 Impacts related to stockpiling of

construction materials

Construction material shall be stored/stockpiled in designated area

(fenced and secured, covered).

5 Impacts related to traffic obstruction and

traffic management

Adequate traffic signs, warning signs, and scheduling of transport

operator in off office hours to avoid traffic congestion and

inconvenience to people.

6 Possibility of contamination of water source

due sub project construction activities.

Regular water sprinkling in approach road, construction sites.

Discourage use of direct discharge of water in to water bodies

without proper treatment.

7 Impacts related to health and safety of

workers, and visitors /worshippers

Use of safety signs in places, fencing of active work

places/construction sites provision of PPE to workers.

8 Impacts related to obstruction and

disturbances to visitors/worshippers of

temple/shrine

Adequate signs shall be used, construction materials shall be stored

in designated areas with proper fencing, and construction work shall

be planned in such a way that it won’t stop worshippers.

9 Impacts related to liquid waste, solid waste,

and sewage management during

construction phases of the project

Implementation of solid and liquid waste management technology.

Prohibition of littering and illegal dumping of waste in premises and

its surroundings.

10 Impacts due to construction materials

(including chemicals) in old artifacts, gold,

etc.

Proper selection of construction material and paint which won’t effect

by any means to old artifacts, valuable items (like gold/gold platings

etc). DoA norms shall be strictly followed up.

11 Impacts to recharge areas/aquifer. PURP recipient wards no 16, 18, 21, 22 of LSMC has many stone

spouts which has particular recharge areas, special care and

protection should be made to such areas during construction and

operation of PURP.

5.1.2 Biological Environment

S.N Identified Impacts Sample Suggestive Mitigation Measures

1 Impacts related to disturbance to flora and

it’s cutting/removal during construction

period

Trees should be protected and its cutting/removal is strictly not

recommended.

5.1.3 Socio-economic, Cultural and Archaeological Environment

S.N Identified Impacts Sample Suggestive Mitigation Measures

1 Disturbance to local residents due to

obstruction to their access, pollution etc

Prior information dissemination to the public regarding the nature,

schedule of work in advance.

Timely completion of work to minimize disturbance.

Adherence to pollution control measures as elaborated above.

2 Pressure on local infrastructures due to

influx of workers

Record keeping of workers

Provide orientation and training to workers for maintaining social

harmony, prohibition of ill social behaviors (alcohol, gambling, etc.)

Local people shall be engaged in construction as per their skills and

qualifications.

3 Obstruction to worshippers/pilgrims/visitors

for entering temple premises during

renovation of temple

The access shall be provided to the priest of the temple/shrine for

certain hours of the day. Due to this arrangement, the priest and

visitors can visit the temple.

4 Issues related to chance find during the Only items required for replacement shall be recorded and replaced.

63

S.N Identified Impacts Sample Suggestive Mitigation Measures

excavation, cultural and archeological

issues during the renovation of

temple/shrine or while implementing PURP

programs in 4 wards of LSMC.

The new construction in any means shall not deteriorate the

“originality” of the temple”.

DoA norms for materials, size/shape, shall be followed. Encourage

representatives from DoA to be present during the excavation period.

Other responsibility of the LSMC are as follows:

Ancient Monument Preservation Act, 1956 of GoN shall be followed

in addition to the following requirements.

(ii) The municipality shall develop a protocol for use by the

construction contractor in conducting any excavation work,

to ensure that any “chance finds” are recognised and

measures are taken to ensure they are protected and

conserved. Part of this protocol will be that when “chance

finds” of archaeological material occur, all excavation work

at the site shall stop until the DoA can determine if the

site needs to be documented or scientifically excavated

before work continues.

(ii) All materials used in the repair and restoration of the temple

and its surroundings (plinths, walls, stairs, paving etc.) shall

be of traditional materials (e.g., lime mortar instead of

cement, Jhingati roof tiles, dachi brick etc.) and be of high

quality. The DoA will provide specifications for such

materials as wood (for columns, rafters, struts), brick or

stone (for paving, stairs, walls, plinths), lime mortar, and roof

tiles, that shall be followed. Materials shall be checked at

pre-shipment and at delivery for compliance with

specifications.

(iii) The construction techniques (joints, fasteners etc.) shall be

consistent with the original temple construction techniques.

While the design of parts that must be replaced (e.g., struts,

column bases) should be consistent with and match the

existing temple in scale, design, level of detail, best practice

would be to clearly indicate the difference between old and

new elements.

(iv) The materials and construction techniques shall be of such

quality that they shall not require major repairs or

refurbishment and should be sustainable over time with little

beyond routine maintenance.

(v) Craftsmen with knowledge and skills applicable to the style

and age of the temple design shall be employed to do the

traditional repair and restoration activities (e.g., wood

carving, mortar preparation, replacement of joists, etc.).”

Operation Phase Mitigation Measures (prepared as per specific project for PURP)

Physical Environment

Biological Environment

Socio-economic Environment

Project Environmental Management Plan Structure and Stakeholders Responsibility

The Project Environmental Management Plan of PURP is prepared to shows linkages with different parties to be involved directly or indirectly during the different phases of project development and

64

operation in compliance with the existing Act and Rules. Overall project environmental management is the responsibility of LSMC. ENVIRONMENTAL ENHANCEMENT AND MITIGATION MANAGEMENT PLAN Environmental management actions to be undertaken and to be adopted for the realization of environmental enhancement and environmental mitigation for construction and operation phases are presented in the Table-A. The Environmental Enhancement and Mitigation Management Plan (Table-B) briefly describes impacts, description of enhancement/mitigation action required, individual or agency responsible, national standards and guidelines, timing of actions, responsible authority, and tentative financial requirements. ENVIRONMENTAL MONITORING MANAGEMENT PLAN Three types of monitoring are envisaged in the plan, namely: Baseline Monitoring, Compliance Monitoring and Impact Monitoring. Since the required databases for the environmental baseline are already collected by the IEE study, the project is not envisaged to require Baseline Monitoring. The compliance monitoring comprises two parts; the first is the compliance to the enhancement actions and second compliance to mitigation actions including the corrective actions issued. The impact monitoring in the plan relates to only those measurable indicators in the socio-economic, Cultural/Physical, Chemical and Biological environments. For each of the monitoring indicators, monitoring methods, frequency of monitoring, responsible parties along with the required cost estimates have been estimated.

Table A: Environnemental Enchantement Management Plan

SN

Impact Enhancement Measures Individuals responsible

National Standards or Guidelines/ Approved Documents

Timing of Actions

Competent Authority/ Agency

Environmental Enhancement Costs (NRs)

I Socio-economic Environment (construction an operation phase )

1 Impact on local Economy

Promote local for the project related economic opportunities

LSMC /Contractor

Approved IEE

Construction and operation phases

No cost

2

Impacts of Construction on Local Employment Opportunities

Ensure that the contractor of the project give priority in the project employment for project affected people, project affected VDC people (particularly Dalits and Janajatis,), project district people and Nepalis in preferential order

LSMC Approved IEE

Constructionphase

No cost

3

Impacts of Construction on Local Produce Marketing/ Business Opportunities

Direct engineers, and contractors to purchase locally produced products (milk, ghee, vegetables) for camp consumption

LSMC Approved IEE

Construction and operation phase

No cost

4

Impacts of Construction and Improved Access on Local Tourism Opportunities

Encourage universities and educational institutions for visit to the project area as educational tourism

LSMC Approved IEE

Const. and Operation phase

No cost

5

Impacts of Construction on Local Subsidiary Industrial

Promote and encourage local entrepreneurs for the development of subsidiary industry for the support of the project

LSMC Approved IEE

Const. and Operation phase

No cost

65

SN

Impact Enhancement Measures Individuals responsible

National Standards or Guidelines/ Approved Documents

Timing of Actions

Competent Authority/ Agency

Environmental Enhancement Costs (NRs)

Opportunities

6

Impacts of Construction on Local Government Revenue opportunities

Ensure that the engineers and contractors pay all local revenues to the local governments such as for rental revenue, aggregate extraction revenue, etc.

LSMC Approved IEE

Const. and Operation phase

No cost

II Cultural and Physical Environment (Construction and Operation Phase)

III Chemical Environment (Construction and Operation Phase)

1

Impacts of Environmental Awareness for the Air, Water and Land Quality Management

Educate the local NGOs, school teachers, and students on the air, water, and land quality management approach of the project by the project environmental staff

Municipality

Approved IEE

Const. and Operation Phase

200000.00

IV Biological Environment (Construction and Operation Phase

1

Table B: Mitigation Measures and Responsible Agency

Issue no.

Impacts Environmental Mitigation Measures and Projected Cost

Responsible Agencies

Timing of Action

Construction/ Operation

Impacts on Physical Environment

1. Disposal of solid waste, waste materials and construction spoils.

Use for land recovery and land filling LSMC and concerned ward

During and after construction period

2. Degradation of water quality, air quality & noise level due to project construction activities.

Treatment facility during construction period Use of personal protective equipment for workers.

LSMC and concerned ward

During construction period

3 Occupational Health

Hazard and Safety.

Implementation of OSH activities. Distribution and encouragement for the use of safety hats, shoes, follow-up of safety regulation, well-communication of construction safety instructions at all levels,

LSMC and concerned ward/stakeholders

During construction period

11 Impacts on sanitation and health of the community due to increase in disease vector and transmission of disease from outside workforce.

Workers are not allowed to stay over night out from the camp. Moreover awareness program will be launched to prevent from the STDs .

LSMC and concerned ward/stakeholders

After construction

26 Reducing the land use.

Appropriate route selection to minimize impacts Maximum use of existing road and public land Collection of spoils and its management in scientific way

Municipalities and Consultant, and Contractor

Construction and Operation phases

Site Specific EMP Matrix for PURP

Name

of Sub

Project

Location Env

Issues/Significance

Likely

Potential

Impacts

Suggested

Mitigation

Measures

BoQ/Cost

Time

of

Action

Responsibility

66

Format for Environmental Mitigation Measures as per EMP

S.N Name of Sub Project Identified

Issues/Significance

Recommended Mitigation and

Enhancement Measures Remarks

67

Annex 3: Format for Social Impact Assessment

For sub-grants involving resettlement impacts, the social officer of LSMC with support from social safeguard specialist of PSC or contracted consultant will undertake social impact assessment (SIA) for each identified municipal investments and/or sub-grants, on the basis of preliminary technical designs. These surveys will help in determining the magnitude of displacement, prospective losses, better targeting of vulnerable groups, ascertaining actual costs of resettlement, and preparing and implementing a resettlement plan.

No involuntary (temporary and permanent) land acquisition is allowed under the project. Land

acquisition costs cannot be funded with the JSDF grant.

Census Survey for Project Affected Persons

The purpose of the survey is to register and document the status of potentially affected persons within the direct impact zone of the project activities. The census survey will cover 100 percent of PAPs. The census survey will provide a demographic overview of the population, and will cover people's assets and main sources of livelihood. The survey of the direct impact zone will cover the following: (i) boundaries of the site identified for the proposed subproject elements in case of subprojects involving new interventions, (ii) proposed right-of-way (RoW) boundaries which will include titleholders and non-titleholders occupying the proposed RoW, (iii) current occupants of the site including businesses, vendors, whether titleholders or otherwise and experience temporary disruptions during construction, and (iv) losses of PAPs.

Checklist for Census, Socioeconomic and Replacement Cost Surveys

Census The census (also known as a detailed measurement survey – DMS) of lost assets will collect data on the affected assets from 100% of APs following detailed engineering design. The data collected during the census will constitute the formal basis for determining PAP entitlements and levels of compensation. For each AP, the scope of the data will include: Total and affected areas of land, by type of land assets; Total and affected areas of structures, by type of structure (main or secondary); Legal status of affected land and structure assets, and duration of tenure and ownership; Quantity and types of affected crops and trees; Quantity of other losses, e.g. business or other income, jobs or other productive assets,

estimated daily net income from informal shops; Quantity/area of affected common property, community or public assets, by type; Summary data on PAP households, by ethnicity, gender of head of household, household size,

primary and secondary source of household income viz-a-viz whether household is headed by women, or consists of marginalized ethnic groups (Dalits, Freed Kamaiya), Muslims/religious minorities, elderly, disabled, indigenous people (highly marginalized, marginalized, and, disadvantaged IPs), below poverty line of NRs 3000/month), landless or households losing 50% of total landholdings (particularly those totally dependent on agriculture for livelihood), as well as remote villages.

Identify whether affected land or source of income is primary source of income; and AP knowledge of the subproject and preferences for compensation and as required, relocation

sites and rehabilitation measures.

Socioeconomic Survey

At a minimum, the Socioeconomic Survey (SES) will collect information from a sample of 10% of Project Affected People (PAP) disaggregated by gender and ethnicity. The purpose of the socioeconomic survey is to provide baseline data on PAPs to assess resettlement impacts, and to be sure that proposed entitlements are appropriate, and to be used for resettlement monitoring. The scope of data to be collected includes: Household head: name, sex, age, livelihood or occupation, income, education and ethnicity; Household members: number, livelihood or occupation, school age children and school

attendance, and literacy, disaggregated by gender; Living conditions: access to water, sanitation and energy for cooking and lighting; ownership of

durable goods; and Access to basic services and facilities

Replacement Cost Survey

The replacement cost survey (RCS) will be done in parallel with DMS and SES activities by collecting information from both secondary and primary sources (direct interviews with people in the affected area, material suppliers, house contractors), and from both those affected and those not affected. The government rates will be adjusted, as necessary, based on the findings of a Land Acquisition Cost Fiction Committee (LACFC). Compensation rates will be continuously updated to ensure that PAPs receive compensation at replacement cost at the time of compensation payment.

68

69

Annex 4. Involuntary Resettlement Impact Screening & Categorization Form

A. Project Data

LSMC Municipal Investment / Subgrant Title:

B. Screening Questions for Re-settlement Categorization

Probable Involuntary Resettlement Effects Yes No Not

Known

Possible Remarks

Will the municipal investment/sub-grant include any physical

construction work?

Does the municipal investment/sub-grant include upgrading or

rehabilitation of existing physical facilities?

Are any municipal invesmtentsub-grant effects likely to cause any

damage/ loss of housing, other assets, resource use?

Is the site for chosen for this work free from encumbrances and is

in possession of the government/Municipality?

If the site is privately owned, will this be obtained through

voluntary donation? (NO LAND ACQUITISION ALLOWED)

Is land for material mobilization or transport for the civil work

available within the existing plot/ Right of Way?

Are there any non-titled people who living/doing business on the

proposed site for civil work?

Will there be loss of /damage to agricultural lands, standing crops,

trees?

Will there be loss of incomes and livelihoods?

Will people lose access to facilities, services, or natural

resources?

Are any vulnerable households including dalits and janjatis

affected?

Whether the affected land/structure owners likely to lose less than

10% of their land/structure area.

If so, are these land / structure owners willing to voluntarily donate

the required land for this sub-grant?

Is any temporary impact likely?

C. Estimates of Specific Impacts

Components

of of the

sub-grant

Private

land

required

in Sq,

Mts.

No of

land

owners

losing

more

than

10% of

land

area

Govt

land

required

in Sq.

mts.

Forest

land

required

in Sq

mts

No of

houses

affected

No of

shops

affected

No of

other

structures

affected

No of

Squatters

affected

Public

utilities

affected

70

D. Information on Affected Persons

Any estimate of the likely number of households that will be affected by the municipal investment/sub-grant?

[ ] No. [ ] Yes. If yes, approximately how many? ______

No. of HHs losing <10% of their productive assets (land/ cowshed/shops/economic units)?_______

No. of HHs losing 10% or more of their productive assets? _____

Are any of them poor, female-headed households, or vulnerable to poverty risks? [ ] No. [ ] Yes. If yes,

please briefly describe their situation with estimated numbers of HHs?

Are any vulnerable households including dalits and janjatis affected? [ ] No. [ ] Yes. If yes, please briefly

describe their situation with estimated numbers of HHs?

What are the needs and priorities for social and economic betterment of vulnerable people including dalits

and janjatis who are affected by this municipal investment/sub-grant?

E. Decision on Categorization

After reviewing the answers above, based on the level of risk it is determined that the sub-grant is:

Categorized as an A project, a full Resettlement Plan is required

Categorized as a B project, a short Resettlement Plan is required

Categorized as a C project, no Resettlement Plan is required

Note: Only category B and C municipal investments and sub-grants are expected to be funded under

PURP since no involuntary (temporary and/or permanent) land acquisition is allowed under the project,

and land acquisition costs cannot be funded with the JSDF grant.

___________________________ _____________________________

Prepared by: Approved by:

(Social Development Officer) (Executive Officer, Municipality)

Date: Date:

______________________________

Reviewed by Social Specialist, Grant Facility Administrator:

Date:

71

Annex 5: Environmental Impact Screening & Categorization Form

Instructions for completing screening checklist of PURP Sub- grants

1. The environmental screening checklist is designed to capture and record relevant environmental information needed for environmental screening of a proposed municipal investment/sub-grant. It also provides early warning to the municipal investment/sub-grant preparation team about potential environmental factors, and provides opportunity to address them in time.

2. The screening team (PMT) must be familiar with municipal investment/sub-grant background through secondary information before walkthrough.

3. During walkthrough the team should held discussion or inquires with communities along the way. Note a more detailed environmental investigation will follow, if necessary, at the later stage. The method to be follow during screening walkthrough include; observation, inspection and inquiry with local people.

4. The team must carry topographical map with them, mark important environmental and cultural features on the map and refer to appropriate section of the checklist. The map should be included as annex to the screening report.

5. The team should take photographs of areas with environmental and cultural implications, and attach in the report with caption

6. The team should include summary of the screening findings, listing main environmental issues/ concerns related to sub-grant.

Information to be collected for Screening

o Name of Project (ward and nearby settlement) o Proposed municipal investment/sub-grant activities including approximate investment required o Identification of environmental and cultural hot spots in and near project vicinity o Environmental factors trigger by the municipal investment/sub-grant activity o Identification of potential impacts, including induced impacts, by the municipal investment/ sub-grant o Views/ opinions and information provided by different group of stakeholders collected through

community consultations, FGD, and involvement of community (potential of community consensus, community involvement, or potential conflict).

Project Brief

Name of municipal investment/Sub-grant (ward Settlements

and other identifying features), show in map.

Proposed Work/ Activities, and Approximate Investment

Required. Describe construction and operation phase

activities.

Implementation approach and institutions involved (User

group, contractor, Municipality, Use of heavy machines or

labour-based using hand tools).

Environmental Setting of the Sub-grant locality

B1. Historical/ Religious/ Cultural Sites such as world heritage sites, Durbar squire, temple, Stupas, pati,

historic buildings, etc

Is the municipal investment/sub-grant located in or

close to world heritage site or its buffer zone?

(Tick)

Yes No

Is the municipal investment/sub-grant located in or

close to nationally important Historical/ Religious/

Cultural sites? (Tick)

Is there traditional community structure/ Pati/

Temple in or close to municipal investment/sub

grant area? (Tick)

If yes, please provide following information.

Name of sites, Location (in

map in relation

to sub-grant)

Existing conditions, problems and

causes of problems:

72

Potential risks to the sites from sub-

grant activities during construction or

operation.

B2. Water Sources/Water Bodies such as traditional stone spout, well, pond, etc.

Is there any traditional water sources (spout, well)

and water bodies (pond) in or near municipal

investment/sub-grant site (Tick)

Yes No

If Yes, please provide following information.

Name of Place Location

(distance from

proposed site)

Existing conditions (type, including

purpose of use, number of users, areas

served), problems and causes of

problems:

Potential risks from sub-grant activities

during construction or operation.

B3 Open Public Spaces: play-ground, garden, community event, etc

Is there any Open Public Spaces along or near

municipal investment/sub-grant sites?

Yes No

If Yes, please provide following information.

Name of Place Location in

relation to

project

Existing conditions (including type,

tentative size, use), problems and

causes of problems:

Potential risks from Sub grant activities

B4 Community Infrastructures ( water supply, electricity, telephone , streets, lane, cultural show, etc )

Is there a chance of impacts on any Community

Infrastructures due to the municipal investment/sub

grant? (Tick)

Yes No

If yes, please provide following information.

Name of Community Infrastructure Location in

relation sub-

grant

Existing conditions, problems and

causes of problems:

Potential risks from sub-grant activities

during construction or during operation

B5 Schools, health facility and other institutions

Is there institutions such as mentioned above in or

near the municipal investment/sub grant site? Is

there a chance of impacts on institution due to the

municipal investment/sub grant activities during

construction or during operation? (Tick)

Yes No

If yes, please provide following information.

Name of institution Location in

relation sub-

grant

Existing conditions, problems and

causes of problems:

Potential risks from sub-grant activities

during construction or during operation

B6 Cottage industries, factories, etc.

Is there industry or factory in or near the municipal

investment/sub-grant site? Is there a chance of

impacts on industry or factory due to municipal

investment/sub-grant activities during construction

Yes No

73

or during operation? (Tick)

If yes, please provide following information.

Name of industry/ factory Location in

relation sub-

grant

Existing conditions, problems and

causes of problems:

Potential risks from sub-grant activities

during construction or during operation

B7 Community and settlements: organized community groups/ guthi, settlement of special groups

Is there a chance of affecting community groups,

special groups? Location of their settlements in

relation sub-grant.

Description

(approximate no. of

HH and population,

nature and special

feature/importance/sig

nificance)

Potential problems to

these settlements due to

proposed sub-grant

works activities during

construction and

operation.

B8 Trading and business areas: shops, bazaar areas, open markets

Is there a chance of affecting trading in the shops,

open market, bazar etc? Locations of the shops,

open market, bazar in relation to the sub-grant site.

Description

(approximate

number,

nature and

special feature

/importance/

significance)

Potential problems to these

trading areas/ activity due to

proposed municipal

investment/sub-grant works

activities during construction and

operation.

B9 Noise & Dust Nuisance

Is there any chance of Noise & Dust Nuisance in

community due to sub grant activities during

construction or during operation? (Tick)

Yes No

If yes, please provide following information Existing

sources of

noise and

dusts,

subproject

activities

causing dusts

and noise,

Existing noise and dust levels

Potential receptors of dusts and noise,

and potential increase in dust and

nosie.

B10 Tourist area.

Is there a chance of affecting tourist area

and tourism? (popular spots for tourist,

tourist walking route, etc)

Description Potential problems to the tourist

sites and tourism due to

proposed sub-grant works

activities during construction and

operation

B11 Traffic congestion and movement of people

Is there chance of traffic congestions and/

or affecting movement of people due to sub

grant activities during construction or during

operation

Yes No

If yes, provide further information Existing traffic flows Municipal investment/sub-grant activities

during construction or during operation

that may cause traffic congestion or

affect movement of people

B12 Use of Hazardous materials

Is there chance of using Hazardous material

in the proposed sub-grant? (Tick)

Yes No

74

If yes, provide further information List of hazardous

materials likely to be

used.

Current practice, and

management.

Risks of the hazardous material. Is it

permitted under national regulation?

WHO Category.

B13 Induced Impacts

Is there chance of adverse impacts induced by the

municipal investment/sub-grant activities during

construction or during operation? (such as causing

urban flooding, encroachment into community

property/ open space/

Yes No

If yes, provide further information Existing

situation

Types of induced impacts envisaged.

Cause of induced impacts/ sub-project

activity that promote induced impact.

Prepare and attach environmental map of the municipal investment/sub-grant project site showing existing features (land

use – built up areas, agriculture land, grass land etc.; water bodies, rivers, social infrastructures – road, taps, temples,

stupas, markets, other water sources; etc) and environmental risky areas (water bodies that could be damaged, river

cutting, and all other possible risky features are areas).

Summary of Screening Findings and Recommendations

Findings and main issues apparent at the stage of

screening

Recommendations and next steps

Prepared by: Approved by:

(Environmental Officer) (Executive Officer, Municipality)

Date: Date:

______________________________

Reviewed by Environmental Specialist, Grant Facility Administrator:

Date:

75

Annex 6: IPs & Vulnerable Groups Impact Screening & Categorization Form

A. Project Data

Municipal Invesmtent Sub-grant Title: B. Identification of Impact on IPs/ Vulnerable Group in the Municipal Investment/Sub-project Area

Impact on Indigenous Peoples (IPs)/ Ethnic Minority(EM)/ Vulnerable Group

Not known

Yes No Remarks or identified problems, if any

Are there dalits, janjatis, or ethnic minorities present in project locations?

Do they maintain distinctive customs and traditions and economic activities in their locality?

Will the project in any way affect their economic and social activity and make them more vulnerable?

Will the project affect their socioeconomic and cultural integrity?

Will the project disrupt their community life?

Will the project positively affect their health, education, livelihood or social security status?

Will the project negatively affect their health, education, livelihood or social security status?

Will the project alter or undermine the their local knowledge, customary behaviors or institutions?

Are IP and VC households likely to lose customary rights over, access to land?

23

Are IPs and VCs likely to lose shelter/business and be displaced?

In case no disruption of indigenous community life as a whole, will there be loss of housing, strip of land, crops, trees and other fixed assets owned or controlled by individual indigenous households?

Specific Impacts on IPs and VCs No of IP families losing land

No VC families losing land

No of IP HHs losing house over 10% of their residence

Govt land required in Sq. mts.

Forest land required in Sq mts

No of IP/VC houses affected

No of IP/VC shops affected

No of other IP/VC structures affected

No of IP/VC Squatters affected

Public utilities affected

23

Land acquisition costs cannot be funded with JSDF grant.

76

C. Additional Information Required

Total and affected areas of land, by type of land assets; Total and affected areas of structures, by type of structure (main or secondary); Legal status of affected land and structure assets, and duration of tenure and ownership; Quantity and types of affected crops and trees; Quantity of other losses, e.g. business or other income, jobs or other productive assets,

estimated daily net income from informal shops; Quantity/area of affected common property, community or public assets, by type; Summary data on PAP households, by ethnicity, gender of head of household, household

size, primary and secondary source of household income viz-a-viz whether household is headed by women, or consists of marginalized ethnic groups (Dalits, Freed Kamaiya), Muslims/religious minorities, elderly, disabled, indigenous people (highly marginalized, marginalized, and, disadvantaged IPs), below poverty line of NRs 3000/month), landless or households losing 50% of total landholdings (particularly those totally dependent on agriculture for livelihood), as well as remote villages.

Identify whether affected land or source of income is primary source of income; and AP knowledge of the subproject and preferences for compensation and as required,

relocation sites and rehabilitation measures

D. Anticipated project impacts on indigenous peoples

Project activity and output Anticipated positive effect Anticipated negative effect

1.

2.

3.

4.

5.

E. Decision on Categorization

After reviewing the above, if it is determined that the sub-grant is:

Categorized as an A project, an Indigenous Peoples Development Plan (IPDP) is required.

Categorized as a B project, a specific action favorable to indigenous peoples is required and

addressed through a specific provision in related plans such as a Resettlement Plan, or a

general Social Action Plan.

Categorized as a C project, no IPDP or specific action is required.

___________________________ _____________________________

Prepared by: Reviewed by:

(Social Expert, LSMC) (Social safeguard specialist, GFA)

Date: Date:

______________________________

Approved by:

(Executive Officer, Municipality)

Date:

77

Annex 7: Outline Structure of an IP - Vulnerable Community Development Plan (IP/VCDP) The identities, cultures, lands and resources of IPs groups are uniquely intertwined and vulnerable to changes caused by development programs. Because of this uniqueness and cohesiveness, sub-grants that include janajati and dalit settlements, should ensure that these groups are not disadvantaged by these development interventions and the proposed mitigation measures/benefits are culturally compatible. This annexure provide a set of guidelines for addressing impacts on IP and vulnerable population through the preparation of an IP-VCDP.

Suggested Guidelines of Preparation of an IP-VCDP

A. The Contest of IP-VCDP and its Objectives 1. Provide overall background and context of preparing IP-VCDP 2. Describe the objectives of IP-VCDP

B. Legal Framework 1. Establish the legal status of the IPs and vulnerable groups identified under the municipal investment/ sub-grant. 2. Spell out what is required by the relevant Acts and rules.

C. Baseline Data 1. Include accurate, up-to-date maps and photographs of the municipal investment/sub-grant area showing the areas inhabited by IPs and vulnerable people. 2. Present a description of the municipal investment/sub-grant and implication for IPs and vulnerable communities and analyze the social structure and income sources and socioeconomic level of the population by category of gender, caste and ethnicity. 3. Provide disaggregated baseline data on the magnitude and nature of negative impact and losses from project intervention. 4. Provide natural resource and asset holding, land tenure and livelihood related information. 5. Capture the full range of production and marketing activities in which these people are engaged.

D. Strategy for Local Participation 1. Documentation of consultations with vulnerable groups to ascertain their views about the project design and proposed mitigation measures. 2. Devise mechanisms for participation by these people in decision making throughout project planning, implementation, and evaluation. 3. Provide effective channels for communicating local preferences, representation and appropriate methods to guarantee full local-level participation with specicial attention to IPs and VCs and their organizations (IPOs and CBOs representing VCs).

R. Mitigation Activities 1. Propose assistance to these people including skill training and income generating activities. Ensure that activities that draw upon indigenous knowledge are used as they succeed better than those that are entirely new principles and institutions.

F. Institutional Arrangement 1. Provide institutional structure and linkage with other project arrangement to implement IP-VCDP. 2. Provide brief description about the adequacy of experienced professional staff and ability of indigenous peoples' own organizations, and local NGOs to interact with specialized government institutions. 3. Describe the role IPs and VCs and their organizations (IPOs and CBOs representing VCs will have in the implementation process.

G. Implementation Schedule 1. Prepare an implementation schedule with benchmarks by which progress can be measured at appropriate intervals.

H. Monitoring and Evaluation 1. Suggest monitoring mechanism ( internal and independent monitoring institutions/officials. Explore the possibility of finding Janjati or Dalits peoples’ own organizations for sub-grant management. 2. Prepare monitoring reporting formats for assessing sub-grant implementation.

I. Cost Estimates and Financing 1. Prepare a plan which detailed cost estimates for planned activities and investments.

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Annex 8: Public Ward Level Consultations Findings

April 2013

In addition to several other consultations, consultations were held in each of the four LSMC recipient wards (listed below) during the preparation of this ESMF. Details of the consultation outcomes are presented below. Ward Consultations

1. Dhapagal, Ward no 16, LSMC- 26 April, 2013 2. Ward office, Ward no: 21, LSMC- 28 April, 2013 3. Alok Hiti, ward no 22, LSMC, 29 April, 2013 4. Kayagunani, ward no 18, KSMC, 29 April, 2013

Prior starting the consultations in each ward, there were introductions of all of the participants as well as highlight information about PPURP by the LSMC and World Bank staff and consultants. 1. Dhapagal, Ward no 16, LSMC- 26 April, 2013 The ward level consultations for ward no 16 was held at the ward office situated at Dhapagal. The concerns and queries raised by the participants were as follows. A participant emphasized the need for sewerage in ward no 16. He has mentioned that due to construction of road and other infrastructure creates pressure in sewerage network. The GoN and LSMC is focusing only for the construction and improvement of road not for sewerage. Due to lack of sewerage in ward no 16, the waste water is spilled all over the road. He further mentioned that in ward no 16, “Asta Matrica Dance” is one of the famous tradition which needs to be continued and conserved for future in which PPURP can support. A: PPURP focuses only in small infrastructure components benefiting the pro-poor community. The sewerage project falls under large infrastructure support which is beyond the scope of PPURP. Besides, this requires treatment facility and stringent clearance which falls under exclusion criteria set for PPURP. A participant mentioned that most of the stone spouts, and wells in ward no 16 are drying up and it needs to be conserved. So, the project needs to think for improving recharge area and maintenance of stone spouts and wells. In ward no 16, Adarsha Saral High School is the only government school. Since the school is in Guthi land, government is not providing any kind of financial and other support to the school. The school is trying to conserve the culture by including “Newari Language” in their syllabus. They are expecting PPURP to support school in promoting language promotion and for conservation of Guthi land and buildings. The market management and waste management in ward no 16 is very poor and needs improvement. Since there are many open spaces in the ward, it should be maintained (including greenery). Private sector is doing well in handicraft sector. The lesson learned from the private sector should be applied to project interventions. There are many temples, shrines, resting places in ward no 16, so PPURP program should focus on renovation and maintenance of such items. Nakabahil of ward no 16 should be promoted as a tourist place. The information about Patan should be provided to tourist, including the importance of Nakabahil area. The tourist shop in the area needs to be managed properly. The entrance gate, and resting place (Pati) of Nakabahil should be renovated giving ancient look.

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2. Ward office, Ward no: 21, LSMC- 28 April, 2013 A participant liked the idea of the project. He has mentioned that the activities should be selected in participatory manner in a bottom up approach not from top to bottom approach. There were several consultations and expectations raised by LSMC in the past. Despite such consultations and planning, some of the programs proposed earlier didn’t happen at all. Due to this reason, people are losing trust and stop appearing in consolations. People are willing to support if projects like PPURP is implemented in their ward. A participant has previous experience working with WB funded projects. He has mentioned that LSMC and ward should be transparent and fund shouldn’t be misused. There are many organizations working in the area of women empowerment, uplifement of pro-poor, environmental conservation in ward no 21. They might be willing to work in collaboration with PPURP. She will inform those organizations about objectives and scope of PPURP. She further added that if LSMC collaborate with such organizations, it could be instrumental in implementing PPURP activities in wards. 3. Alok Hiti, ward no 22, LSMC, 29 April 2013 A participant mentioned that it will be difficult for wards to generate matching fund for community support programs like (conservation of shrines, temples, historical places) as these are public properties, people are not willing to contribute. The ward has bad experience working with LSMC in the past. If LSMC implements the activity, it will be difficult to maintain the quality. So, in order to maintain the quality of work, it needs to be contracted out with conditions that respective ward will also be engaged in monitoring and supervision activity. Previous lessons learned and existing ill social practices in executing the task through municipality should be reviewed prior deciding the mechanism of implementation of program. The grant needs to be properly utilized so effective monitoring by the World Bank should be in place. The municipality should be transparent and the modality of operation of program should be not being difficult. The individual ward must be in position to play a major role in selection of activity and in monitoring. There is several income generating activities currently ongoing in ward. So, this program can obtain such information and also collaborate with such entities for effective and participatory implementation of activities. Since this is ward focused program, information dissemination and orientation is required to majority of population. For the effective execution of this program, ward level representation in the steering committee of LSMC is recommended. Since there is no elected government body at ward level, the program needs to be executed representing all walks of society. If this program is dependent only to municipality, it will be difficult for execution at grass root level of ward. It is for this reason, mechanism for effective ward level representation is essential. A participant noted that programs executed directly through ward are more transparent and effective. The budget should reach to targeted stakeholders directly to avoid misuse and proper execution of activity.

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He further added that there are many historical and archeological places in ward no 22, which has not yet been highlighted due to lack of promotional activities. He has suggested that stocktaking of such historical and archeological places and its promotional activities should be an integral component to PPURP. A participant mentioned that his organization is providing skill oriented training to people in areas of cottage industry (handicraft etc). Since there are many such organizations involved in providing such trainings, the PPURP can use such roster of organizations for their use. A participant mentioned that all the recipient wards of PPURP should unit together for tourist promotion in Patan. The development of state of the art tourist information center and tourist route could be one of such initiatives. A participant is 82 years old and knowledgeable about the history of the area. He has mentioned that there are several shrines and archeological places in the ward. Besides there are many stone spouts and wells in the ward. The “Gopi Chandra Mahabihar” and other several Bihars has a long history and such information is not available within Nepal. However in Tibet and in Nalanda people are involved researches of such archeological places of Patan. They often visit the site and interview Mr Shakya. Mr. Shakya is in favor that such historical item needs to be preserved. He believes that promotion of such items will support the tourism industry in Nepal. 4. Kayagunani, ward no 18, KSMC, 29 April, 2013 A participant mentioned that they are promoting local handicraft and gift items produced at local level and even open a shop for promotion and sale. Their organization is willing to collaborate with wards for such promotion for PPURP. The local people are producing handicraft items but finding a market is a big challenge. So, effective promotion and access to market for the locally produced goods is one of the important aspects to be considered under this program. According to a participant, all the recharge areas of stone spouts and wells are encroached in the name of urbanization. The wells and stone spouts are drying up. It is very important to increase the recharge areas by introducing techniques like rain water harvesting. He further added that the remaining ponds in LSMC need to be conserved. He has also mentioned that there are very unique traditional houses in ward no 18, which needs to be conserved. According to him, the traffic management is poor in tourist areas of ward no 18 and other places. The problem of pollution and hawkers are also prevailing in the area. A participant mentioned that LSMC should develop tourist package in collaboration with wards to avoid monopoly of tourist guides. A participant advised that handicraft fair should be organized by the wards for the promotion handicrafts. The tourist police and other safety and information mechanisms which are in place should be effective. For quality tourism, facilities for tourist should be developed within wards.

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Annex 9: Public Ward Level Consultations Attendance Ward 16 Consultations, 26 April, 2013

S.N Name Organization/Address

1. Riddhi Man Shrestha 16/71 Sahal

2. Ishwor P.Pokharel Adarsha Saral High School

3. Koji Ratna shakya Samayk Ajibika Adayan Kendra

4. Rajendra Shakya Nyakha Chok

5. Sabina Maharjan L.S.M.C

6. Prabin Dhakhwa L.S.M.C

7. Pawan Lohani Consultant-World bank

8. Dilip Joshi Patan Campus

9. Arjun Kuwer L.S.M.C

10. Bulkni rana Maharjan Ward no 16

11. Narayan Maharjan 16/Nakabahil

12. Rinoj Dongol Nyatha chowk

13. Narayan Dongol

Ward 21 Consultations, 28 April, 2013

S.N Name Organization/Address

1. Kedar lal Shrestha Pimbahal

2. Rupak Kanta Rajopadhya Pimbahal

3. Ramesh Man Karmacharya Pimbahal

4. Bagish Purna Shrestha Pimbahal

5. Bhim Maharjan Mikha Bahal

6. Aapu Lal Maharjan Pimbahal Mubahal

7. Mina Shakya Mikha Bahal

8. Gajendra Maharjan Chayasal

9. Nem Raj Shakya Chayabahal

10. Utam Lal Shrestha Chayabaha

11. Barsha Raj Bhandari Chayabaha

12. Asha Dahal Chayabaha

13. Asha Kaji Maharjan Chayabaha

14. Prabin Dhakhwa L.S.M.C

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Ward 22 Consultations, 29 April, 2013

S.N Name Organization/Address

1. Rabindra Maharjan Secretary, Ward no 22

2. Bhim Maharjan

3. Buddhi Raj Maharjan Chakupat

4. Purna Chandra Shrestha Ikhache Tol

5. Raju Bajracharya Ikhache Tol

6. Babu Kaji Shakya Ikhache Tol

7. Sandira Bajracharya Ikhache Tol

8. Gyan Bahadur Shakya Ikhache Tol

9. Shyam Krishan Maharjan Chaku Gha hitti tol sudar samiti

10. Aroj Kumar Khadgi Khumbesor Tol sudar Samiti

11. Pradip Bajracharya Samayak Bachat Tatha Rin Sahakari Sanstha, Chaiperson

12. Prabin Dhakhwa L.S.M.C

13. Pawan Lohani Consultant-WB

14. Sabina Maharjan L.S.M.C

15. Salil Devkota Environment &Social Safeguard

16. Chaitya Raj Shakya Ikhache,22

17. Narendra Raj Shakya Ikhache,22

18. Puspa Tandukar Jhatapole

Ward 18 Consultations, 29 April, 2013

S.N Name Organization/Address

1. Gyarundra Shakya L.P Mahapal

2. Rakesh Joshi Mahapal, Lalitpur

3. Prerna Bajracharya Dhaugal

4. Sagar Bhakta Amatya Gahabal, Lalitpur

5. Tirth Maharjan Kayagu nani

6. Sabina Maharjan L.S.M.C

7. Babu Kalu Dongol Secretary ward no 18

8. Salil Devkota Consultant-WB

9. Prem Kaji Shakya Daubahal-18

10. Nabin Maharjan Kayagu nani

11. Rakesh Bajracharya Kishi chok -18

12. Prabin Dhakhwa L.S.M.C

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Annex 10: Pictoral Highlights of Ward-level Interactions

Office of ward no 16, LSMC Vegetable market close to ward no 16, LSMC

Inner urban road of ward no 16 Consultation in ward no 16

People waiting to fetch water ward no 22 Local people waiting to fetch water from stone spouts, near ward office of ward no 22

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Glimpse of settlement in ward no 18 Open spaces in front of ward no 18

Glimpse of settlement in ward no 21 Glimpse of open space ward no 18

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During consultations with stakeholders at ward no 18 During consultations with stakeholders at ward

no 18

Temple in ward no 18 Houses glimpse of ward no 21

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Houses glimpse of ward no 21 Participation of consultation ward no 21

Glimpse of settlement in ward no 22 Consultation in ward no 22

Children park at ward no 22 Consultation in ward no 22