Nepal - Power Development Project : environmental assessment (Vol. 6 of 7) : Policy framework for environmental impact assessment

 E176 v6 "·~ " l "":' I tiiS MAJESlY;S·GpVERNMENT OF NEPAL MINI~,/RY. OF.- WQ~R RESOURCES !l.fo;~·.::~,.· , ,. "'·.''·"- # Tel: 228<;123/228046 1.',,., . s tlo·,~·n 1'!\'3<:,0~~· · 2267%/227654 ·'l' ot "e\6l ' Fax: +':177-1-22753t. '~1 E-mail:mowrCdJwlink.com.np Singha Durbar l(athmandu, Nepal Date: 8!8/02 Ref. 3t-o~-cb Ref: Nepal: Policy framework for the Environmental Impact Assessment for the projects under PDF. To, Ms. Magdalena V. Manzo ::::er.,v• Oper dtiuns 0ffict::r5, South Asia Energy and Infrastructure The World Bank, Washington, DC. 20433, USA Dear Ms. Manzo: Please find attached, herewith, a copy of the "Policy Framework for Environmental Impact Assessment" only for the projects to be developed under Power Development Fund approved by HMG/N for your necessary actions. Regards, ~ Pravin Raj Aryal Senior Divisional Engineer Ministry of Water Resources, Kathmandu. CC. ~ajendra Dhoj Joshi Please also forward the letter with a copy of J Senior Education Special is policy Framework to Ms. Magdalena V.Manzo Nepal Country Office, at the World Bank~Washington. D.C .. Lal Durbar, Yak & Yeti Hotel Complex Kathmandu Nepal. CC. Department of Electricity Development Anam Nagar, Kathmandu, Nepal.  E176 S (;A r; i~ ECi f: Li: CO?Y Acctt~~~- Volume 3 _I_ C'- "" FP N I""E · :) · -, · ·Y1 I L< ' . ,•,::ti?M IS.,C Fi;.£ I;;O:Aipn:JPna:ne or •1Lrv:r GR. TF t!:YI CoiRg Aom Pro< f'JP- ;'.E- b'331l NEPAL POWER DEVELOPMENT PROJECT POLICY FRAMEWORK FOR E:NVIRO~~ENTAL IMPACT ASSESSMENT FOR PROJECTS UNDER THE POWER DEVELOPMENT FUND (including Process Guidance) Prepared by HIS MAJESTY'S GOVERNMENT OF NEPAL MINISTRY OF WATER RESOURCES )\;0\•ember 1999 FILE COPY  POLICY FRAMEWORK FOR ENVIRONMENTAL IMPACT ASSESSMENT FOR PROJECTS UNDER THE POWER DEVELOPMENT FUND (including Process Guidance) , Table of Contents List of Abbreviations jj The Definition ofTenns 111 lntrod uction 1 Nepal's Legal Framework 2 World Bank Requirements 3 Compatibility of HMGN and World Bank Requirements 4 PDF Process 5 The Five Steps of EIA Process 5 ATTACHMENT I Part A : Generic Terms of Reference for EIA 8: Part B : ToR for En\'ironmental reviews for Planning. Construction and maintenance of Transmission Lines 14 ATTACHMENT II : Socio-economic and Cultural Components of The EIA Process 18 A]'..f!'\EX I : Resettlement and Rehabilitation Policy Framework 22 (Principles and Objectives) ANNEX2 : Resettlement and Rehabilitation Policy Framework 24 (Entitlement Policy) ANNEX 3 : Outline of Resettlement Action Plan (RAP) 27 ANNEX4 : Outline of Vulnerable Communities Development Plan (VCDP) 32 -· ANNEX5 : Tools for public information and consultation 35 C:\TEMP\PDF_~.doc  Lis! of Abbre\·iations ACRP Acquisition, Compensation and Rehabilitation Plan BP Bank Policy (World Bank) EDC Elec~yity Develop4ent Centre EIA Env!tb'nrhentallmpact Assessment EMP Environmental Management Plan GP Good Practices (World Bank) HMGN IPDP ... His Majesty's Government of Nepal IndigcnO\)S Peoples Development Plan (see VCDP) IEE 'Initial En,·ironmental Examination MOPE·· Ministry of Population and Environment MO\\'R Ministry of Water Resources 1\EA 1\epal Electricity Authority NEIAG93 National En\·ironmentallmpact Assessment Guidelines 1993 NGO Non Governmental Organization OD Operational Directives OP Opcr~nional Policy (World Bank) PAF Project Affected Family PCP Public Consultation Process PDF Power Development Fund R&R Resettlement and Rehabilitation RAP Resettlement Action Plan RO\\' Right-of- Way S&R Screening and Ranking SD Social D~\·elopment SPAF Seriously Project Affected Family ToR Terms of Reference VCDP Vulnerable Communities Development Plan WECS Water and Energy Commission Secretariat \VRS \Vater Resources Sec{or 11  The Definition of Terms a. Compensation means payment in cash or in kind of the replacement value of the acquired property. b. Com ensation Fixation Commit*e means the committee established under Land Acquisition , 1977' to determine the replacement value and the compensation rates for property acquired under the Act. c. Grievance Redress Committee means the committee established by HMGN and/or the sub-project to hear ~~e complaints or the grie\'ances of PAFs or PAPs regarding resettlr.:ment. including acquisition of land. houses and other assets. and . loss of li ,·eli hoods: caused by the project . d. Land Acquisition means the process whereby a person is compelled by a public agency to alienate all or part of the land he/she ov.ns or possesses, to the ov.nership and possession of that agency. for public purpose in return for a consideration. e. PAF means Project Affected Family, and consists of the members of a household, including elderly dependents and minor children (under 18 years of age) residing under one roof and operating as a single economic unit, who are ad\'ersely affected by the Project. or any of its components. Major children. over 18 years o~ age. shall be separately entitled to rehabilitation benefits. e\·en if they li\'e v.ith their parents but will not be eligible for separate housing or compensation for properties held by other members of their shared household. f. PAP means Pwject Affected Person. and includes any person or persons who. on account of the C:\ccution of the project. or any of its components or sub-projects or parts thereof. would have their: (i) right or title in any house. land (including residential. agricultural and grazing land) or any other fixed or movable assets acquired or possessed. in full or in part, pennanently or temporarily: or (ii) business. occupation. work. place of residence or habitat adversely affected; or (iii) standard of liYing adversely affected. g. Policy Framework refers to the overall Policy Framework for Environmental Impact Assessment. and Resettlement and Rehabilitation of Project Affected Families for all power generation, as well as transmission and distribution systems falling under the Power Development Fund (PDF) Project. The Policy Framework describes the process and methods for assessing the environmental and social impacts including adverse impacts on, benefits to, and role of local communities in the Project, and the compensation, relocation and rehabilitation of people who have been adversely affected by the Project. b. RAP means the detailed resettlement action plans prepared for sub-projects, where the nwnber SP AFs exceeds 25. i. Rehabilitation means the compensatory measures provided under the Policy Framework other than payment of the replacement value of acquired property. iii j. Relocation means the physical relocation of PAFs from their pre-Project place of residence. k. Replacement Cost or Replacement Value (i) For agricultural land : It is the pre project market value of land of equal productive potential or use located in the vicinity of the affected land, plus the cost of land preparation to levels similar to those of the affected land, plus the cost of.MY registratfon and transfer taxes; . 1'?(.1, (ii) For land in urb~ areas: It is the pre-project market \'alue of land of equal size and use, with similar or improved public infrastructure facilities and services and located in the vicinity of the affected land. plus the cost of registration and transfer,;a.xes; (iii) For house~fand other structures : It is the market cost of the materials to build .a replacement strutture with an area and quality similar to or bener than those of the affected structure. or to repJir a partially affected structure. plus the cost of transporting building materials to the construction site . plus the cost of any labor and contractor's fees. plus the cost of any registration and transfer taxes. In determining the replacement cost. depreciation of the asset and the \'alue of sal\'age materials are not taken into account. nor is the ,·alue of benefits to be dcri,·ed from the project deducted from the \'aluation of .111 affected asset. 1. Resettlement means all the measures taken to mitigate any and all adverse' impJcts of the Project on PAF's property and!or li\'elihoods, including compensation. relocation (where rele\'ant). and rehabilitation. m. Right of Way Easement or ROW easement means the process whereby the. owner or possessor of land is compelled to permit the continued usc of a part of his land as a means of transit of persons or scl\·iccs. in return for a consideration. but where the O\\ncrship of the land remains unchanged. n. SPAF is a family who looses O\'er 25 % of its total landholding or whose land is reduced to an uneconomic holding (less than 5.0 Katha). or who is being relocated. For determining the number of SPAF's acquisition of houses shall be treated separately. each house acquired being equivalent to one SPAF. o. Sub-project means each of the power generation or transmission and distribution schemes to be financed. wholly or in part, by the PDF. p. VCDP means the Vulnerable Communities Development Plan for \1llnerable groups including ethnic minorities and tribal groups, as well as other groups living below the poverty line, in the project impact area. C IT!M1'11'DF _.......,bu99.doc tV  r-iEPAL POWER DEVELOPMENT PROJECT Policy Framework for Environmental Impact Assessment for Projects under the Power Development Fund (including Process Guidance) 1.1 Introduction: Projects eligible .{or funding from the Power Development Fund should be either: (i) a gei'rt'ration project in the range of I 0 to 300 MW identified through the screening and ranking exercise under the Medium Hydropower Study 1 or by NEA or private promoters using screening criteria acceptable to IDA or (ii) a generation project below I 0 MW identified by NEA or private promoters using screening criteria acceptable to IDA; or (iii) an isolated rural power system sub-project or, (iv) a transmission and distribution proj~.:ct. ~ach project will undergo an Environmental Impact Assessment (EIA) in compliance with J\ epa¥s licensing requirements in accordance with the prevailing Environment Protection Act, 2053 ( 1997) and Environmental Protections Rules, 2054(1997) Jnd if the (sub) project is to be funded from IDA resources it should also meet World Bank requirements~ as stated in this process guidance. Transmission projects will be subject to similar EIA requirements. The purpose of the EIA is to identify em·ironmental and social cons(}quences of the proposed sub-projects. in order to : a) ensure the identification of pmential environmental issues and social concerns early in the implementation of a proposed facility to incorporate necessary safeguards in project design. and determine appropriate mitigation .;md compensation measures: b) minimize risks to the proponent; c) avoid delays and extra costs which may subsequently arise due. to unanticipated environmental and social problems: d) ensure that the concerns of residents and affected communities are addressed. and if required. plans are made for the resettlement and rehabilitation (R&R) of those residing in the selected sites for development: and e) identify the potential for maximizing em·ironmental resources management and socio-economic benefits to local communities \\ithin the scope of the sub- project. 1.2 Coverage of EIA: The EIA !?hould cover physical. biological, socio-economic and cultural issues that are likely to arise during construction and operation activities as appropriate and will include, but not be limited to, an assessment of the environmental impacts relating to the: a) Physical, geological stability and geographical suitability, and public acceptability of the proposed facility and associated supporting infrastructure; b) construction activities: 1 The Process carried out by the Medium Hydropower Study Project, implemented by the Nepal Electricity Authority under the World Bank financed Power Sector Efficiency Project. It covers the hydropo.,..•er projects of capacity ranging from 10 to 300 MW nation-wide. 2 Projects funded by other donors will be expected to comply with their respective requirements, as well as Nepal's. C.IT£MPIJ'DF _......,ba99.doc: 1  c) design, mitigation and compensation options to be employed; d) managernent control and operational practices to be employed; e) potential for accidents and failures to be foreseen and mitigated; f) monitoring and ensuring long term sustainability of sub-project; g) the socio-economic status of communities residing in the project affected area; h) land use and land tenure in the project affected area, including the barrage/ darn site, reservoir, power s~tion, access road, transmission and distribution network, and ~ciated supporting infrastructure, as applicable; i) the hurn;:m scttiements in the project affected area; j) the livelihoods of persons affected by land acquisition and by the economic impact of the project on the surrounding area; k) mitigation measures to·•be employed to minimize losses and compensate, rescnle and rehabilitate affected communities and restore livelihoods; 1) the advers~ social effects of a large influx of labor on local communities, particularly on women and disad\'antaged people; m) the positi\C benefits which would accrue to local communities from the proposed de\'elopment: n) the possible role of the local community participating in. and contributing to project sustainability: and o) Decommissioning and rehabilitation acti\'ities. The Tem1s of Reference (ToR) for EIA. in accordance with the Em·ironment Protection Regulations. ~054 (EPR97) will co\·er but not be limited to, the above li~ted concerns depending upon the nature of the·project. Additional concern or issues may be added as appropriate. 1.:2.1 The E!A repon will contain an En\'ironmental Management Plan (EMP) \-:hich will incorporate Acquisition Compensation Rehabilitation Plan (ACRP) as well as Resettlement Action Pl.111 (RAP\ or Vulnerable Community De\'elopment Plan (VCDP), where applicable. Nepal's Legal Framework 1.3 Let!al Framework for EIA: An umbrella national-level Environment Act, VIZ. Environment Protection Act, :2053 (EPA97), received parliamentary approval in September 1996 and was brought into force on June 24, 1997. The Act is under enforcement along with the Envirorunent Protection Rules, 2054 (1997), which prescribe various legal measures against all potential sources of air, water and land degradation adversely impacting the natural and social environments. A legally mandatory Initial Environmental Examination (IEE) or Envirorunental Impact Assessment (EIA) of development proposals in all sectors including that of water resources is one of the highlights of this legislation. The Regulation also prescribes a schedule of development proposals, for all relevant sectors, under two categories, one clearly requiring an lEE and another requiring a full scale EIA. The legislation clearly mentions that any proposal may undergo the EIA process in case the lEE study recommends to do so. In addition, the I legislation ensures public participation in different stages of the environmental assessment ,.1 process. In view of these provision in the Regulation, the Ministry of Population and 2  Environment has started a process of setting up a Task Force to build upon the recently revised National EIA Guidelines 1993 (NEIAG93) and thereby to fonnulate in· accord \vith the EPA97 and EPR97 a common guideline, which will basically cover the procedural aspects of carrying out an lEE or EIA. Once this common guidelines is approved by HMG!Nepa1, it will supercede and replace all the sectoral EIA Guidelines, currently effective or under preparation. The scope of EIA as made rrfandatory by the legislation, also covers socio- economic and cultural ~'ot, as one of the major environmental components to address the pertinent social concerns on case by case approach. 1.4 Other provisions for environmental management of power projects in Nepal are currently set out in the following A~s and Regulations for the power sector: • Hydropow~ De\'Clopment Policy ( !992) • Water Resources Act (1992) • Electricity Act (1992) • Electricity Regulation ( 1993) • Land Acquisition Act ( 1977) Experience sho\\ s that the proposal to be operated in the forest and protected areas should duly consider the Forests Act. 1993 and the !\ational Parks and Wildlife Conservation Act. 1973. World Bank Requirements 1.5 Requirements for EIA: Projects financed \\lth IDA resources normally need to comply \\ith World Bank Operational Policies. World Bank OP 4.01 provides an indication of projects normally considered A and B. Thermal and Hydropower de\·elopment and Dams and Reservoir projects are normally considered as Category "A" projects and as such require a full EA (EIA). Transmission projects can be Category A or B, depending on the anticipated se\·erity of their impact. As an "A". transmission projects \\ill require a full EIA. As a "B", they will only require a more moderate environmental analysis. The World Bank's OP and BP 17.5 mandates public information and consultation for such projects. 1.6 Other World Bank Policies and Guidelines that need to be specially considered for the EIA of projects under the PDF are: • OP/BP/GP 4.01, Environmental AssessmentJ • OP!BP/GP 4.02, Enviromental Action Plans • OP!BP/GP 4.04, Natural Habitats • OP 4.07, Water Resource Management • OP 4.37, Safety of Dams • Operational policies on Involuntary Resettlement ) l In general HMGN will follow the Bank's policies and procedures mentioned above. But in case of the International Water Ways where bilateral ~greements and understandings exist HMGN will deal this matter accordingly. 3 C:\TCMI"V'DP _..,....b<fll doc  1.7 Requirements for Social Impact Assessment (SlA): Each sub-project financed with IDA resources under the PDF will undergo a EIA, comprised of a Social Baseline and detailed Social Impact Studies including a census of affected persons and inventory of affected properties. \\'here an Acquisition, Compensation and Rehabilitation Plan (ACRP) is required. specific provisions will be made for mitigating losses and restoring livelihoods, and for ensuring the establi6hment of an independent grievance mechanisms. Should the total number;~>SPAFs for a (sub) project be 25 or grcatcrthe ACRP (which the World Bank refer to as RAP) will need to be cleared by the World Bank. Should the number of SPAFs be Jesser than the above threshold, the ACRP (RAP) may be cleared by the borrower following the principles laid do\\11 in the policy framework. In either event, the borrower shall be responsible 10 ensure that resettlement outcomes, i.e. satisfactory relocation and rcstor:.~tj.:m oflivclihoods. arc attained. In all cases if vulnerable people are affected by the ;;ub-project (including ethnic minorities, tribals, or other particularly \'U]nerable groups). a \'ulnerable Communities Development Plan (VCDP) will need to be prepared and cleared by the Bank. in addition to the ACRP. The World Bank Policies and Guidelines that need to be complied with for the EIA of sub-projects under the PDF are: • OD 4.20 Indigenous Peoples • OD 4 ..30 ln1·olunta.ry Resettlement Compatibilin of H:\lG:--i and World Bank Requirements 1.8 EIA: The screeninf! criteria in EPR97 has made it mandatorY for e]ectricitv generating schemes abo1 e S M\\' (thermal projects aboYe I ~vf\\) to undergo a full tiA, whereas. the lesser capacity projects require an lEE only. Therefore. when these lesser capacity projects are submitted for PDF financing. these would need to undergo a full EIA only if the lEE identifies serious ad1·erse impacts and recommends for ElA study. In addition to land utilized for project construction actiYities. The Electricity Regulation :20.33 B.S. ( 199.3) prescribes a buffer zone around the transmission towers and transmission/distribution lines. The \\idth of the buffer zone Yaries v.ith the voltage but there being a prohibition on house construction and land utilization with in the buffer zone, this land also has be acquired for each sub project. 1.9 SIA: World Bank OD 4.30 is generally consistent with the basic objectives of Nepal's Land Acquisition Act, 2053 (1977). Several gaps in Nepal's overall policy framework for resettlement and rehabilitation however need to be addressed .. The ToR for EIA, as pro1·ided by the EPR97, will accommodate specific socio-economic issues in order to address the afore-mentioned gaps. The ToR 1\ill be based on the project location and the impacts on those local social, cultural and economic characteristics. l.l 0 The IDA requirements \\ill be covered ooder the EMP section of the EIA report following the format prescribed by the EPR97 and will incorporate, where necessary, a VCDP and an acceptable Resettlement and Rehabilitation Action Plan where involuntary resettlement of 25 or more families occurs. C\TEMP\!'Df_..,....bri9.cloc 4  PDF Process 1.11 EIA Process: The following process mentioned herein would meet both Nepal and IDA requirements. EDC is the licensing agency on behalf of HMGN's Ministry of Water Resources (MOWR). The project proponent is responsible for preparing the EIA and submitting it to EDC. The EDC throug}f MO\VR will forward EIA report to the Ministry of Population and EnY,ilonment (MOPE), who on the basis of the EPA97 has responsibility for overseeing the E!A report including the process. The !v10PE will provide both general and specific TOR and final clearances for the ElA reports with IDA approval if so required. Although measures may vary between projects, the five-step EIA process outlined below presupposes that the projects have undergone the Screening and Ranking (S& R) proce~ to avoid projects with the most undesirable impacts . .. The Five Steps of the EIA Process Step 1: Scoping and Production o(Terms o( Reference As per the provisions of the EPR 1997. and on info!Tilation obtained through various sources including the Screening and Ranking process. the proponent shall translate the generic ToR for the E!A (sec Attachment I) into a site specific one. A non- technical nrsion. in r<cpali and'or local language. should be disseminated and discussed with the local community rcprcscntati,·cs. including NGOs. and other relevant members of civil society. The proponent should conduct an assessment of environmental and social impacts using rapid appraisal techniques in consultation with them. Consultations with communities shall be guided by the Public Consultation Process outlined in paragraph 1.12 below. Following these discussions the proponent should revise the terms· of reference and submit them to EDC. EDC will forward them to i\·10PE through MOWR for clearance. ~10\\'R 'EDC will review and modify the ToR as required before recommending it to l\·10PE for apprO\'al. Step 2: Conducting Studr The proponent should undertake the EIA study covering the issues spelt out in paragraph 1.2 above according to the approved ToR. Consultations with the communities \\ill be guided by the Public Consultation Process outlined in paragraph 1.12 below. Step 3: Compilation a( Reports Follov.ing the conclusion of the study, the proponent should prepare the report according to the agreed format (see paragraph 2.9) v.ith due consideration on Schedule 6 of the EPR97. In g~neral, the EIA report should include the Em·ironmental Management Plan (EMP), which may include RAP or VCDP, as necessary, and other such specific plans. A draft report should be disseminated to the communities concerned as well as representative organizations and discussed \\ith these groups; their concerns should be addressed when finalizing the report; Step 4: Approval of Report The final report will be submitted to EDC for review, who will forward it to MOPE through MOWR regarding clearance as per the provisions contained in the EPR. 5 ln the course of evaluating the report, EDC/MOWR and MOPE may form a committee with representation of experts. The Committee or the experts may make field visits and hold public consultation; if required, to advise/make a decision on the ElA report. The MOPE could approve the report or seek additional information from the proponent and/or MOWR. The report will also be submitted to the World Bank for review and clearance if the preparation of an ACRP and or a VCDP is required for projects that are to be funded from IDA resources. Once the MOPE is satisfied with the EIA conclusions and recommendations, appro~ 1 ;anbe gran(ed. Step 5: lmplemenration There will be continuous monitoring during (sub)project implementation and the operational phase by regulatory a~.~horities or external monitors appointed and working on behalf of regula.to~· authprities. Participatory monitoring by community groups and appropriate representaii\'es of ci\·il society on common property resources will be seen as an integral part of the monitoring plan. 1.12 Public Consultation Process: A credible Public Consultation Process (PCP) is crucial during different stages of the study to the successful deYelopment of the project, inc] uding the preparJtion of an acceptable En\'ironmemal Management Plan (E\1P) which \\ill include, where necessary. an ACRP and a \'CDP. The proponent should inYolve a t\on Gon'rnmental Organiution ~GO). if required. as part of the Consultant team to design and facilitate the implementation of a suitable consultation process. Based on this information the Proponent should continuously re-assess the PCP strategy as feedback is receiYed from information dissemination and consultation. The Proponent by himseif or through a consultant team should: <J)idcntif\' the stakeholders- directly affected people. rcpresentati\·e Community Based OrganizJtions (CBOs) and NGOs. local media correspondents. traditional leaders. government agencies and local bodies. etc .. and assemble them in a body that represents the stakeholders. The group should meet periodically during the process of the EIA study to discuss the emerging findings of the impact assessments: b) assist the rcpresentati\'e group in preparing and disseminating public information in Nepali and1or a language that is understandable and accessible to the groups being consulted , including the types of impacts that may be anticipated, and the scope of the draft ToR for the EIA: post srudy on the summary of the draft EIA report, mitigation measures. Use may be made of non-technical brochures, local languages, leaflets, posters, briefings and presentations. public meetings (including Yisual aids), im·oh·ement of the media and pro\'ision of public access to the reports. c) assist the group in establishing mechanisms and conduits for consulting communities and representative NGOs when undertaking the steps and tasks described in the EIA ToR. These would include inputs into the scoping of the EIA ToR, conducting socio-economic and community opinion surveys, evaluating alternatives, formulating entitlement packages and drafting Elv.fP (RAPIVCDP) for the fmal EIA report; d) keep a record of information and consultation activities - type of activity and mechanisms used, date and location, names of groups and individuals invited, 6  types of attendees, issues raised, responses given and the impact upon subsequent decisions; and e) track the progress of implementing EMP (RAPNCDP) during facility development and operation through community monitoring activities. 1.13 Responsibility for ElA study: The responsibility for preparing the EIA report is that of the proponent. The proponent ~auld hire required multi-disciplinary consultant teams to undertake nee~ .studies, consult Y.ith the community and compile the report. The reports ...,;Jl be submitted to MOPE for clearance through MOWR and, if considered for PDF financing, to IDA for review. · 1.14 Monitoring: Monitoring of the implementation of the ElA recommendations will be carried out by MOWR. In 1iadition, Environment Protection Act and Environment Protection Regulations' makes the. provision of Environment Inspector for compliance monitoring purpt'lses which Y.ill be carried out by MOPE. C:\TEMJ'\POF-~.doc 7  Attachment- I ·Part A , GENERIC TERMS OF REFERENCE FOR EIA 1 EPR97 containsli guide to formulate the Terms of Reference. The following information may also be helpful while developing the TOR for a specific proposal. 2.1 Name and address of the person/institution responsible for the preparation of the EIA report. ..~ . ·"~ "J 7 Introduction: State the purpOse of the terms of reference. identify the project to be assessed. and explain the executing arrangements and responsibilities for the en\'ironmental impact assessment. Identify the sub-project v.ith name and location/area to be assessed. 2.3. Scoping results of the scoping exercise carried out for the EIA study. 2.4. Back!:!round: This section would provide brief but pertinent background for the licensees study team who \\·ill conduct the em·ironmental assessment. This would rypically include a brief description of the major physical components of the proposed project,, the project activities and schedule. a statement on the need for it and the objectives it is intended to meet, the implementing agency. a brief history of the project (including alternatives considered). its current status and timetable. and the identities of any associated projects. If there are other significant projects H:-.·1G~ or the private sector has in progress, or ·has planned \\'ithin the region which may compete for the same resources. or projects that have parallel or 0\-crlapping impacts in the san1e ecosystem of watershed. they should also be identified here. 2.5. Objectives: This section ''ill summarize the general scope of the en\'ironmental impact assessment and discuss its timing in relation to the processes of project preparation, design and construction. 2.6. Environmental Impact Assessment Requirements: This section should identify any regulations, quantitative or qualitative standards, or general guidelines which ~ill govern the conduct of the EIA or influence the content of the report. They may include any or all of the follO\ving: • Relevant HMGN laws and/or regulations • HMGN standards for pollution control or abatement; • Regional, district or municipal/village level environmental impact assessment regulations or other rules, if any, covering the implementation of mitigation programs that may be sectoral in nature and/or require the participation of such ) agencies or organizations; and C \l<MN'Df _,.,.,..bc<W doc: 8  • Environmental impact assessment regulations of any other financing organizations involved in the projecl, e.g., IFC or World Bank Operational Directives 2.7. Study Area: This section would specify the boundaries of the study area for the assessment (e.g., the basin or river systc~ and primary and secondary project impact areas). Maps should be provided~d referred to in the Appendixes to the ToR. (For transmission projects specify the right-Df-\~-ay (ROW) \\idth and illignment of the corridor, and location of transmission substations. as well as support roads). 2.8. Scope of Work: In some c~es, the tasks to be carried out by the EIA team \\ill be kno"'n with sufficient certaii)t)' to be specified completely in the ToR. In other cases, information deficienci~s riecd ·to be alleviated or specialized field studies or modeling activities performed first to assess im"pacts. in which case the EIA study team may be asked to define particular tasks in more detail and submit this to the licensee, who \\ill arrange their review and appro\· a!. Otherwise the main tasks would include: Task I: Description of the Proposed Project Pro\'idc a description of the relevant parts of the project. using maps (at appropriate scale) where necessary. and including the following information: location. general layout. size. capacity, etc.: pre-construction actiYities: construction activilies; schedule: staffing and support: facilities and services: operation and maintenance activities: required off-site investments: and life-span. (Note: if there are pmicular types of information appropriate in the description of the project category they would be specified here.) · Task 2: Description of the En\'ironment Assemble. e\'aluate and present baseline data on the rele\'ant en\'ironmental characteristics of the study area. Include information on any changes anticipated before the project commences. (Annotate or modify the lists below to show the critical information for this project category, or that which is irrelevant to it.) (i) Physical en\·ironment: geology; topography; soils; climate and meteorology; ambient air quality; surface and groundwater hydrology; existing sources of air emissions; existing water pollution discharges; and receiving water quality. (ii) Biological environment: flora; fauna; rare or endangered species; sensitive habitats, including parks or preserves, significant natural sites, etc.; species of commercial importance; and species with potential to become nuisances, vectors or dangerous. 9  (iii) Socio-cultural environment: population, Ethnic Vulnerable Group, Cropping Pattern and Major Crops, Religious and historical places, land acquisition and compensation. Task 3: Legislative and R~gulator)' Considerations Describe the ped~nt regulations and standards go\'eming en\'ironmcntal quality, health and safety, water resources strategy objectives; protection of sensitive areas, protection of endangered species, siting. land use control. etc. at international, \:_pc national, regional, district, and Ward levels. (The ToR sh~ld· specify those that are kn0\\11 and require the consultant to investigate for others. For ·example if the project impacts an area covered by an international con\'ention, this should be indicated.) Task 4: Determination of the Potential Impacts of the Proposed Project In this analysis. distinguish between significant positi\'e and negati\'e impacts, direct and indirect imp.1cts. and immediate and long-tem1 impacts. ldentif)· impacts which are unavoidable or irre\-ersible. Wherever possible. describe impacts quantitatively, in terms of em·ironmental costs and benefits. Assign economic values .,.,:hen feasible. Characterize the extent and quality of available data.. explaining signifkant information deficiencies and any uncertainties associated \\ith predictions of impact. If possible. gi,·e the ToR for studies to obtain the missing information. (Identif}· the types of special studies likely to be needed for this project category.) · Task 5: Analysis of AltematiYes to the Proposed Project Describe alternatives that were examined in the course of de\·eloping the proposed project and identif)· other alternatives which would achieYe the same objectives for the sectoral ]e\'e], where applicable. reference should be made to HMGN's Screening and Ranking of hydropower projects. encompassing a sectoral EA. The concept of project-specific alternatives extends to siting. design, technology selection. construction techniques and phasing. and operating and maintenance procedures. Compare alternatives in terms of potential environmental impacts; capital and operating costs; suitability under local conditions; and institutional, training and monitoring requirements. When describing the impacts, indicate which are irre\'ersible or unavoidable and which can be mitigated. To the extent possible, quantifY the costs and benefits of each alternative, incorporating the estimated costs of any associated mitigating measures. Include the alternative of not constructing the project, in order to demons~te environmental conditions v.ithout it. ) 10  Task 6: Development of an Environmental Management Pian. Recommend feasible and cost-effective measures to prevent or reduce significant negative impacts to acceptable levels. Estimate the impacts and costs of those measures, and of the institutional and training requirements to implement them. Consider compensation to affected parties for impacts which cannot be mitigated. Prepare a management plan including proposed work programs, budget estimates, schedules, staffing and traif!ing ~quirements, and other necessary support services to implement the'~tigating measures. Mitigation actions would typically be presented in relation to four categories as follows: .. ~ Chart 1: E~,·ironmental Impact Mitigation Actions Type· of Action Description Avoidance and Prevention measures to redestgn or relocate fae~ln•es. or planmng projed adivi\Jes {scheduling, ahematrve construclton methods, etc.) to avoid potentially signmcant adve'""' efl8ds; and for prevent•on. adoptton of heahh programs. publtc awareness. etc Mrt••at•~n measures to reverse adverse tmpac:s t: acce;ned levels I Compensat•on measures to wmpensate for unavotdaole adverse enwonmental•mpacts whtch generally refer to monetary compensat•on for adverse impad on pnvate proPerty {to be covered m much greater detail by the EIA) Residual lmpa=ts proposal and possible aoopt1on of ad•ons to further alievtate what are otherwise acceptable impacts (e.g . 1mpacts that have already been mrtigated to meet' standards) Task 7: Identification oflnstirutional Needs to Implement Environmental Impact Assessment Recommendations Re\'iew the authority and capability of institutions at local, regional, and national levels and recommend steps to strengthen or expand them so that the management and monitoring plans in the environmental impact assessment can be implemented. The recommendations may ex"tend to new Jaws. and regulations, new agencies or agency functions, inter-sectoral arrangements, management procedures and training, staffmg, operation and maintenance training, budgeting. and financial support. The ToR can be specific as to what is required for recommendations at the local, district and/or regional levels. TaskS: Development of a Monitoring Plan Prepare a detailed plan to monitor the implementation of mitigating measures and I the impacts of the project during construction and operation. Include in the plan an .I estimate of capital and operating costs and a description of other inputs (such as training and institutional strengthening) needed to carry it out. C:ITDIPIPDF_-...ba99 do< 11  Task 9: Assist in Inter-Agency Coordination and PublictNGO Participation Assist in coordinating the environmental assessment v.ith other government agencies, in obtaining the views of local NGOs and affected groups, and in keeping records of meetings and other activities, comnnmications, and comments and their disposition. (The ToR should specify the types of activities; e.g., interagency seeping session. en\'ironmental briefings for project staff and interagency committees. supw.*~ cm·ironmental advisory panels, public forum.) 2.9. Report and Deli\'erables : The environmental impact assessment report should be concise and limited to significant environmental issues. The main text should focus on findings, conclusions and recomm~nded actions, supported by sununaries of the data collected and citatioru for any references used in interpreting those data. Detailed or un-interpreted ~ta are not appropriate in the main text and should be presented in appendices or a separate volume. Unpublished documents used in the assessment may not be readily a\'ailable and should also be assembled in an appendix. Organize the Environmental Impact Assessment report according to the Schedule 6 of the EPR97 incorporating the information given below: • Executi,·c Summary • Introduction/ Background • Policy. Legal and Administrati\'e Framework • Description of the Proposed Project • Description of the Em·ironmcnt: Baseline Information • Significant Em·ironmentallmpacts • Analysis of Altemati,·es • i\ litigation \ leasurcs • Em·ironment l\1anagemcnt Plan • Em·ironmental Management and Training • Monitoring Plan • Auditing • Conclusions and Recommendations • List of References • Appendices: In addition to the information as required under EPR, follov.ing information may also be included in the appendices: Inter-Agency and PublictNGO Involvement List of the people preparing the Environmental Assessment Records oflnter-Agency and Public/NGO Conummications Maps, Data and Detailed Sheets Field QuestioiUlaires, Analysis results and Check lists Unpublished Reference Documents Rele\·ant Photos The ToR should specifY the hard copy and electronic copy of all reports, appendixes maps, records, etc. be provided to EDC and the MOPE. 12  2.1 0. Study Team: Environmental assessment requires interdisciplinary analysis. Identify in this paragraph which specializations ought to be included in the team for the particular project category. This section would indicate how long each professional would be involved and which tasks they would provide input to. 2. I 1. Schedule: Specify dates for progress reviews, interim and final reports, and other , significant events. Also specifY an estimate of the cost of conducting the study. . 1 Include here lists of data sources, project background reports 2.12. Other Infonnatio#. and studies, relevant publications, and other items to which the consultant's attention should be directed. Include a sample Table of Contents. ) 13  Attachment - I ·Part B Terms of Reference for: Environmental Review for Planning, Construction and Maintenance , of Transmission Lines : ,.·1; Introduction: !i-f·' , ' 1. Environmental reviews v.ill be required for transmission line projects, in the form of detailed environmental screening ,criteria for route selection, assessment of general environmental issues, ~.nalysi? of alternatives and techniques to mitigate the typical impacts expected along the routes: These analyses and conclusions will be reported in the project Environmental impact Assessment (EIA). Local impacts that cannot be determined prior to the time of project preparation will be addressed in the EIA, outlining the actions to be taken during the survey, construction and operation phases. The decisions regarding final routing \\ill be taken during the detailed engineering stage. Reference documents: 2. Guidelines for mitigative strategies, and World Bank directives are given in the following documents: • Electric power transmission systems, Environmental Sourcebook, World Bank Technical Paper l'o. 154: • In case land is acquired. or is Wlder dispute. relevent World Bank Operational Policies and HMG.'1\ regulations would be followed. Contents: 3. The Environmental review for Planning, Construction and Maintenance of Transmission Lines should include chapters as outlined below. No partial presentation or division into sub reports is acceptable. Project Description Policy, Legal and Ad.mi.nistration Environmental Issues Alternatives Route Selection Criteria and Mitigation Strategies Disposal of Polychlorinated Biphenyls (PCB's) Monitoring Management and Training 14  Project description: 4. The project description should include maps and gruphic presentations which display power line routing. The maps and graphic presentations should be of a quality to enable easy identification of potential impact areas. Legal and administrationj , ij'f/ I ' 5. The review should give a summary of the national, and local regulatory framework, and the relevant em·ironmental standards (see references a through c). The status of the project's environmental clearances from HMG/N regulatory agencies should be presented, '.'.1th corroborative docwnentation .•.~ En\'ironm ental-issues: 6. This section details the range of environmental impacts associated with transmission systems. S\\itchyards. substations. rights of way. access roads. construction. operation and maintenance acti,·ities . .:\.ll of these issues will be addressed during the conceptual design, and some (i through \'i listed below) will be reassessed during detailed design and final route selection: i) transmission line rights of way and substation site impacts on land use: agriculn;rraJ, forest areas. wetlands. wildlands: · ii) habitat fragmentation and in\'asion of exotic vegetation species: iii) access roads in remote areas. increase in hunting. exploitation of forest resources, induced dcYelopment due to new access conidors. human settlement and more extensive clearing: i\') clearing (erosion. loss of habitat) and control of \'egctation in rights of ways, including mechanical and chemical (herbicide) clearing operations, (chemical contamination of site and rainfall runoft); v) impaired cultural or aesthetic resources because of visual impacts; vi) erosion during construction, and along aceess roads, substation and transmission tower sites; Issues typically addressed during conceptual design only: concurence vii) potential electromagnetic frequency (EMF) radiation effects, radio noise and television interference, and audible noise along transmission line routes, exposure of substation operations personnel to potential EMF hazards; viii) aircraft hazards from transmission lines and towers; 15  ix) public access to substations, towers and electrocution hazards. Alternati"\·es: 7. One of the most important considerations for reduction of negative environmental impacts is the evaluation of alternative routes and substation sites. This section will describe the route selection criteria to be used to avoid negative environmental impacts. Alternatives should be considered fo.r_;,nitigation df negative environmental impacts. A number of alternatives should be considered during project planning, and rationales discussed for selection of alternatives, including: • no action •. 1 • . . of.alternative routeS and substation sites; careful selection~ • alternati\·e voltages; • DC transmission lines (narrower rights of way); • energy and load management plans to reduce the need for additional power; • upgrading of existing facilities; • alternatiYe methods of construction: • alternatiYc transmission tower design and materials; • alternative mainten::mce tcchn.iqucs and access road designs: Mitigation strategies: 8. Other types of mitigation strategies to address the environmental issues listed above should be detailed: • erosion control techniques for construction acti\'ities, maintenance of access roads, tov.:er and substation sites; (Typical, conceptual engineering solutions should be included in the report ,suitable for the terrain crossed ) • revegetation for erosion control and restoration of resource values; • restriction of public access, fencing and security of substations and towers, discontinuous right of way access roads; • minimum clearances for mitigation of potential EMF effects, radio noise and television interference, and audible noise; ) 16  Disposal of Polychlorinated Biphenyls (PCB's): 9. The use of PCB's in electrical equipment was discontinued (in most coW1tries) fairly recently, some of the existing power system electrical equipment may still contain PCBs. For ai}Y such component that have to be replaced, or incorporated as a ~1mponent of ihe new project the following procedures should be followed: ' ·' i) Review HMG!N (or international) regulations concerning the use, retrofitting, storage and disposal practic~~ for PCB's and PCB electrical equipment. ii) State which:6f the ~xi sting system electrical equipment would be replaced, and if any of this equipment has been tested for PCB's. iii) Detail how PCB electrical equipment and PCB's would be tested or othemise identified. iv) The report should detail an en\'ironmentally sound PCB manauement plan for safe storage andlor disposal of PCB electrical equipment. The PCB management plan should include specifications for safe handling prJctices. including personnel protective equipment and clothing. and the em·ironmental guidelines should provide details of safe transfer and secure storage areas. Monitoring: 10. A monitoring plan should be formulated to track the effecti\'eness of mitigation techniques. and address recognized problems in an appropriate and timely manner. This regular scheduled monitoring program would consist chiefly of \'isual inspections during construction and operation for: • erosion along access roads. substation and transmission tower foundations; • encroachment of settlements within rights of ways, encroachment of settlements v.ithin protected areas \'ia transmission line access roads, exploitation of fore~t resources in protected areas via access roads; • vegetation clearances below transmission lines, and invasion of exotic species along right of ways; • transformer fluid leakage and spills; • safe storage and disposal of PCB's Management and training: C.I~DF_......,.....,...,_ 17 II. The EIA should discuss needs for institutional strengthening, such as additional staff and/or training in envirorunentaJ issues. 12. Training should be carried out prior to the implementation phase of the project Staff workers should have an understanding of the rationale for the mitigation and monitoring they would be implementing. 18 C:l'll:MPIPOF- - · -  Attachment- II SOCIO-ECONOMIC AND CULTURAL C0!\1PONENTS o·F THf EIA PROCESS t/.1'. A. Socio-Economic Baseline 3.1 Each sub-project being con~idered for PDF financing will conduct a systematic . Socio-Economic · .:Baseline study consisting of the following components: • socio-economic survey of sample households to d~termine asset ov.-nership and occupation patterns. pre-project incomes and liYing standards, livelihood strategies. and access to support services and production inputs (the socio- economic sur;ey should cover a statistically rcle\'ant sample of households but should include all households whose houses are being acquired by the project); • .land usc sun·cy, including formal and informal t~nure systems. O\mership and use-rights. and management of common property resources. to determine access of different social strata to land and other producth·e resources; · • communit)· studies describing social structure and social relations in project affected area. including inherent power relations. pre\·a!em forms of so'cial capital. caste and class structures. and access of special interest groups such as the poor. women. and other vulnerable groups to resources and social SeT'\'lCes: • institutional analysis of formal and informal community organizations for resource management. conflict resolution and maintenance of social norms; and of local government institutions or other local organizations established by other agencies for resource management or de\'clapment activities; • beneficiary consultations and focus group meetings to determine local perceptions about the project and to ascertain local development needs and potentials; • rapid assessment of project impacts to determine the extent and types of positive and negative impacts the sub-project is likely to have on the project affected area; this information v.ill provide the basis for determining the need for a ACRPNCDP or other SD measures; 3.2 These tools and methodologies help to develop a .corrummity profile and to / 1 understand the social context in the project affected area so as to be able to develop realistic, sustainable management plans which are acceptable to the local community. It is 19  recommended that wherever possible, socio-economic baseline studies employ participatory techniques to involve the affected community and local NGOs for data collection and analysis. B. Social Impact Studies , 3.3 The Socio-cconorffi'c'Baseline is followed by detailed social impact studies whose primary purpose is to quantify the type and extent of project impacts in order to prepare realistic socio-economic operational plans. 3.4 In practice. the cens_us and inventory should be carried out simultaneously. In sub-projects where ·the' nuinber of PAPs is less than 200, or the number of SP AFs is less than 25, the census and in\'cntory m·ay e\'en be combined with the collection of household socio-economic data for the social base line. The census and im·cniOI)' should include at a minimum: (a) number of persons. main occupation and len~! of income: (b) number, type,. and dimension of the houses; (c) number. quality. and area of all the residential plots: (d) number. category. type. and area of agricultural land held and to be lost by each PAF: (e) tenure st::nus of agricultural land and. amount of rent paid by tenant!Jessee. where applicable: (c) quantity. category. and dimension of all other fixed assetsadverscly affected: (g) producti\'e assets lost as a percentage of totJl producti\·e assets; (h) temporary da.m<Jge to producti\'c: assets; (i)quantity. c<Jtc:gory. and quality of flOn- agricultural li\'clihood adYersc:ly <Jffc:cted: (j)quantity. type. and quality of commtinity resources to be acquired. C. Opcrationalizing Socio-Economic Denlopmcnt 3.5 Operational plans for SO should be based on the socio-economic baseline and the EIA studies and should include the participation strategies proposed for project implementation. The promoter will be responsible for preparation of an operational ACR.P and VCDP. The ACRP will document implementation arrangements for resettlement including asset acquisition, compensation, relocation and rehabilitation of persons affected by loss of dwelling. land and other assets or livelihood. The VCDP will ensure that \lllnerable communities residing in the project affected area and affected directly or indirectly by the project. are protected and pro\'ided de\'elopment assistance in accordance with their 0\\11 priorities. 3.6 If the sub-projects involve physical relocation of PAFs. or proviSion of replacement land, each sub-project v.iii provide data on the location; area, type, and category of the replacement land available for residential and1or agricultural purposes. Care v.ill be taken to ensure that the relocation site or replacement land as far as possible is in the vicinity of the PAF's previous location to avoid social dislocation and unrealistic division of the PAF's economic livelihood. ) D. Implementation Arrangements 20  3. 7 Schedule: In each sub-project, resettlement schedules will be coordinated with construction schedules. All resettlement activities arising out of the works to be implemented in a given year will be completed prior to the scheduled start-up date of those works on the respective sub-project, and prior to disbursements out of the proceeds of the Loan for activities related to the respective sub-project. 3.8 Complaints and Grievances: HMGN will create a Grievance Redress Committee at the sub-project levell_o J,lddress comrlaints and grievances- pertaining to resettlement and social development am! to pre-empt all disagreements being referred to the court. The Committee will involve administrative officers and representatives of local communities affected by the sub-project. Grievances related to any aspect of a sub-project will be handled through negotiations aime~~at achieving consensus. 3.9 Amicable scttl~cnt 'between the PAF and the promoter will be first attempted at the sub-project jt;vel. Jf this first cmnciliation attempt fails, the case may be brought by either party to MOWR and then to l'-10PE, if necessary. If no resolution is arrived at. the PAFs or the promoter may invoh·e elected representati\'eS at the local and/or Provincial level to attempt conciliation. 3.10 If the case is not rcsol\'ed m this len:!. the case may be submitted by either party to the ci\'il court. The decision of the ci,·il court will be binding to either parties. E. SupcrYision and Monitoring 3.11 Resettlement activities in all sub-projects will be r~gularly supervised and monitored by MO\\'R. Internal monitoring will be carried out quarterly. An agency, recruited by MOWR for this purpose. will periodically carry out external monitoring .and e\'aluation of resettlement and other SD acti\'ities in the sub-prl1jcct. External monitoring will be done by an organization such as an academic or research institution. an NGO, or an independent consulting firm (sec further paragraph 3. I 3). Funds for external monitoring will be provided under the Project. They will be identified and recruited by MOWR during the first year of Project implementation. Reports of the external monitor will be submitted to MO\\'R. MOPE and to the World Bank. 3.12 Internal monitoring and supervision will: a) nrify that there are no outstanding or unresol\'ed disputes in the area affected by sub-projects included \\ithin the Project. and th;:Jt property valuation and resettlement has been carried out in accordance with the provisions of the Policy Framework: b) O\'ersee that resettlement and other Socio-Economic measures are implemented as approved: and c) verify that funds for implementing resettlement and development activities are provided in a timely manner, are sufficient for their purposes, and are spent in accordance ,,;th the provisions of the Policy Framework. 3.13 External Monitoring: In addition to verifying the reports generated by internal monitoring, the external monitoring agency will carry out the following tasks: ) C;\TEMP\J'Of_I'IOVUDbct99.b 21  a) Evaluate the social and economic impact of resettlement and other socio· economic activities on the PAFs; b) verify if the objective of enhancement or at least restoration of income levels and standards of living of the PAFs have been met; and c) suggest modifications in implementation, where necessary, to achieve the principles and objectives of the Policy Framework. , 3.14 EIA Policy Franl;~_?,rk regarding socio-economic aspects: Affected persons will be entitled to compensation based on the status in their occupntion of the affected areas. Entitlement categories within the project affected areas include absent landoY.ners, ov:ner-operators, lessees and tenants in the agricultural sector. In addition, they might include those running private comm:ercial establishments. Owners or occupants of the few houses falling wit}).in.\ the area to be acquired will be considered SPAFs eligible for resettlement. Should any of the resq.urces being adversely affected be ov.ned or managed as common property,· all those v>ith an interest in those resources will be entitled to compensation and rehabilitation benefits 22