Nepal - Second Rural Water Supply and Sanitation Project

IbL)6 THE WORLD BANK GROUP AWorld FreofPv Pro1y rty 24479 finfoShop Integrated Safeguards Data Sheet (Initial) Date ISDS Prepared/Updated: 07/08/2002 Section I - Basic Information A. Basic Project Data COuntry: NEPAL Project ID: P071285 Project: Rural Water Supply & Sanitation Project II Task Team Leader: Tashi Tenzing Authorized to Appraise Date: December 21, 2001 IBRD Amount ($m): Bank Approval: February 20, 2003 IDA Amount ($m): 25.00 Managing Unit: SASEI Sector: Irrigation & drainage (50%); Sub-national Lending Instrument: Specific Investment Loan (SIL) government administration (20%); General Slatus: Lending water/sanitation/flood protection sector (30%) Theme: Administrative and civil service reform (S); Rural policies and institutions (P); Water resource ______________________________________________ m anagem ent (P) I.A.2. Project Objectives: The proposed project is a follow-on to the on-going successful Rural Water Supply and Sanitation Project [RWSSP I (Cr.2912-NEP)] scheduled to close in March 2002. This follow-on project aims to influence the broader sector institutional performance by leveraging the success of RWSSPI as well as expanding the proven impact of this approach on poverty reduction and social capital mobilization at the grassroots level. Therefore, the objectives of the proposed project are: (i) improve sector institutional performance and mainstreaming this (Board) approach in the Government system and (ii) delivering sustainable health and hygiene benefits to the rural population through improvements in water and sanitation facilities. The second objective, would be achieved, inter alia, by assisting women to identify ways to earn income from time saved in carrying water and by strengthening, governmental and non-governmental capacities to facilitate the delivery of rural water supply Special focus of the project would be to empower and provide opportunities to women/girls as the primary beneficiaries. I.A.3. Project Description: The Project is a follow-on of the ongoing RWSSP I. The concept and approach of RWSSP I is found to be sound and yielding successful results on the ground with indications of strong community ownership and commitment which bode well for scheme sustainability. In view of this, this proposed project is expected to continue very  ISDS TNE WORLD BANK GROUP AWorId FPre ot Poverty ; - InoShop 24479 Integrated Safeguards Data Sheet (Initial) D.ate ISDS Prepared/Updated: 07/08/2002 Section I - Basic Information A. Basic Project Data Country: NEPAL Project ID: P071285 Project: Rural Water Supply & Sanitation Project II Task Team Leader: Tashi Tenzing Authorized to Appraise Date: December 21, 2001 IBRD Amount ($m): Bank Approval: February 20, 2003 IDA Amount ($m): 25.00 Managing Unit: SASEI Sector: Irrigation & drainage (50%); Sub-national Lending Instrument: Specific Investment Loan (SIL) government administration (20%); General Status: Lending water/sanitation/flood protection sector (30%) Theme: Administrative and civil service reform (S); Rural policies and institutions (P); Water resource management (P) I.A.2. Project Objectives: The proposed project is a follow-on to the on-going successful Rural Water Supply and Sanitation Project [RWSSP I (Cr.2912-NEP)] scheduled to close in March 2002. This follow-on project aims to influence the broader sector institutional performance by leveraging the success of RWSSPI as well as expanding the proven impact of this approach on poverty reduction and social capital mobilization at the grassroots level. Therefore, the objectives of the proposed project are: (i) improve sector institutional performance and mainstreaming this (Board) approach in the Government system and (ii) delivering sustainable health and hygiene benefits to the rural population through improvements in water and sanitation facilities. The second objective, would be achieved, inter alia, by assisting women to identify ways to earn income from time saved in carrying water and by strengthening, governmental and non-governmental capacities to facilitate the delivery of rural water supply Special focus of the project would be to empower and provide opportunities to women/girls as the primary beneficiaries. I.A.3. Project Description: Tihe Project is a follow-on of the ongoing RWSSP I. The concept and approach of RWSSP I is found to be sound and yielding successful results on the ground with indications of strong community ownership and commitment which bode well for scheme sustainability. In view of this, this proposed project is expected to continue very  2 ISDS much along the concept and approach of RWSSP 1, but improve and refine areas that need improvements. The proposed project would: A the broader sector performance level: * seek agreement with the Government to mainstream this approach into the Government's budgetary system as a result of the demonstrated outcomes on the ground; * assist the Government to establish an effective sector monitoring system within NPC and MPPW so as to mainstream more efficient and cost effective service delivery approaches in the sector (currently this is ineffective or lacking); * based on the results of the M&E, seek agreement to allocate budget to sector agencies on a competitive performance based system. At the Project (Board) level: * help the Board to matures into an effective institution and consolidate and expand the outcomes of RWSSP 1, revise the legislation give it greater autonomy and also to allow it in future to take on schemes supported by other donors too; * further refine/revise the Board's own scheme and SO eligibility criteria as needed; * reach out to development regions such as the Far West and Mid West and build capacity of both SOs and communities; * provide continuity to RWSSP 1. During the Mid-term Review (MTR) of RWSSP I it was agreed that Batch IV schemes would be implemented up to the development phase; the implementation phase would be conducted under the next project. The Bank's support to this project would not only help the Batch IV communities to implement their schemes after a successful development phase, but also allow the Board to continue uninterrupted its Batch V scheme pre-feasibility studies which needs to be advertised immediately and thus avoid any gaps in its program which would be counter productive ancl raise many questions among participating or interested communities; and also help the Board to test and refine the approach in the Far and Mid-west Regions of Nepal; * help to make even more robust the RWSSP I service delivery mechanism which is expected to be scaled up by the Government and other actors mainstreaming the principles and approaches demonstrated as effective under the IDA funded * projects and not necessarily by IDA itself pouring in large financial resources into the sector. The idea is to provide a doable and effective service delivery mechanism which is efficient and yield sustainable water and sanitation services run by the communities. (A few of the SOs working in partnership with the Board have proposed a similar framework and successfully obtained funding from donors in other sector activities too.) The Project components would include:  3 ISDS 1. Operation and Institutional strengthening of the Board 2. Selection and construction of schemes: - Community development - Construction of water supply schemes and sanitation facilities 3. Studies I.A.4. Project Location: (Geographic location, information about the key environmental and social characteristics of the area and population likely to be affected, and proximity to any protected areas, or sites o1 critical natural habitats, or any other culturally or socially sensitive areas.) Based on a demand driven approach, this project is expected to have country wide coverage (in 75 districts), including hill, mountains and the Terai geographical regions. B.. Check Environmental Classification: B (Partial Assessment) Comments: For the purposes of O.P. 4.01 on Environmental Impact Assessment, the project has been classified as Category B, as it will not have significant adverse environmental inipacts that are sensitive, diverse or unprecedented. Category B projects require a partial environmental assessment to determine potential negative environmental impacts, proposals for mitigation measures where needed, and the identification of opportunities for environmental enhancement. W/orks envisaged as part of the water supply and sanitation schemes could also lead to construction related environmental impacts. These can be managed by development and implementation of good environmental management plans, including mitigation and enhancement measures, that would be detailed in a Social and Environmental Mlanagement Framework (see below). C. Safeguard Policies Triggered Policy Applicability Environmental Assessment (OP/BP/GP 4.01 ) * Yes 0 No 0 TBD Forestry (OP/GP 4.36) O Yes O No CO TBD Natural Habitats (OP/BP 4.04) 0 Yes 0 No 0 TBD Safety of Dams (OP/BP 4.37) O Yes O No O TBD Pest Management (OP 4.09) 0 Yes 0 No 0 TBD Involuntary Resettlement (OP/BP 4.12) 0 Yes 0 No 0 TBD Indigenous Peoples (OD 4.20) O Yes O No * TBD Cultural Property (OP 4.1 1) O Yes O No 0 TBD Projects in Disputed Territories (OP/BP/GP' 7.60)* 0 Yes 0 No 0 TBD Projects in International Waterways (OP/BP/GP 7.50) 0 Yes 0 No 0 TBD *.By supporting the proposed project, the Bank does not intend to prejudice the final determination of the parties' claims on the disputed areas Section II - Key Safeguard Issues and Their Management LP. Summary of Key Safeguard Issues. Please fill in all relevant questions. If information is not available, describe steps to be taken to obtain necessary data. I].D. I a. Describe any safeguard issues and impacts associated with the proposed project. Identify and  4 ISDS describe any potential large scale, significant and/or irreversible impacts. Environmental Issues: No large scale, significant and/or irreversible environmental impacts are expected. Given the current knowledge of the project, no protected areas or critical habitats are likely to be aflected. Generally, the net environmental impacts of rural water supply and sanitation schemes are positive. However, a number of adverse impacts could occur, if the schemes are not properly planned, sited, designed, constructed, operated and maintained. Potential negative impacts, both individual or cumulative, include: Hydraulic interference between existing and new well sources. Induced erosion caused by pipe laying, general construction activities, deforestation, improper drainage, and overflow of reservoirs or other components. * Increased water use without adequate drainage and wastewater disposal may cause pollution problems ancl mosquito breeding; as would ponded water around water points; * Shallow aquifers may be contaminated due to poor quality well head construction and improper siting of latrines Careful planning and design of the project is required to address these issues. The approach would be to draw lessons and build upon the environmental criteria and M&E airrangements defined in the ongoing RWSS Project. In addition, there are environmental issues at the policy level that may lead to long-term inmpacts; they will be identified in the Environmental Assessment and addressed in the Environmental Management Plan. 1They include: * water quality monitoring and institutional measures to ensure the provision of safe water, particularly for arsenic testing; * potential for conflict with existing and/or downstream users; * risk of groundwater overdraft, particularly in sensitive areas such as the Terai; * provision for appropriate drainage * catchment protection, watershed management, and promotion of integrated management of local water resources. K.ev social issues include: * The risk of exclusion of vulnerable groups, particularly ethnic minorities and low caste groups. Nepal is ethnically and socially diverse. Minority ethnic groups and low caste groups have often be unable effectively to participate in development because of norms which govern social interaction between "high" and "low" castes and between caste and ethnic groups. This tendency has been exacerbated by such people generally having lower literacy levels, less confidence to speak in public meetings, and/or language barriers. * Gender issues: In the rural communities of Nepal, women play a significant role in the management of water supply and sanitation. However, social norms have discouraged and even actively excluded women from openly participating in  5 ISDS development planning and implementation across most subjects - including water and sanitation. Land acquisition: Under RWSSP I, some land acquisition was required. II.D.lb. Describe any potential cumulative impacts due to application of more than one safeguard policy or due to multiple project component. Potential cumulative impacts will be identified in the Environmental and Social Assessments. 11 D. I c Describe any potential long term impacts due to anticipated future activities in the project area. Potential long-term impacts will be identified in the Environmental and Social Assessments. II.D.2. In light of 1, describe the proposed treatment of alternatives (if required) Guidelines for analysis of alternatives will be prepared as part of the Environmental and Social Assessment activities. Simple procedures to be used at the community level would be designed to screen project alternatives for their economic viability, level of priority, and cost-effectiveness, together with social and environmental criteria. lI.D.3. Describe arrangement for the borrower to address safeguard issues Social development issues: Vulnerable Groups: The proposed project will continue to focuses on two issues found important in RWS&S I. First, ensuring that water rights (the rights to water source) in watersheds/ forest/pasture that are customarily used, owned or occupied by certain el:hnic groups are accounted for in the intervention. Second, pro-actively encouraging the participation of poorer households, socially disadvantaged caste groups and certain vulnerable ethnic groups in'the project. During the preparation of the project, and based on the experience of RWSSP I, an assessment of ways of encouraging the active participation of these groups will be examined. To ensure that the project does not adversely affect the rights of vulnerable ethnic groups, the Bank's OD 4.20 will be applied and an Indigenous People's Development Plan developed. The plan would be prepared by identifying vulnerable eathnic groups in the area/district/region and engaging them in consultation about the implications of, and possible options for, the project. Experience from RWS&S I suggests that this may require interacting with 7-10 vulnerable groups to prepare an IP[)P. Additionally, the current RWSS Project is demand driven. Communities collectively decide whether they would like to participate in the project or not, and follow a process which ensures the involvement of all community members. This is a critical aspect of the project's participatory approach and will need to be closely monitored in the piroposed second project. Specific attention should be paid to equality in terms of access by vulnerable people to information, participation in project planning, implementation and receipt of benefits, and ability to hold other members of the community accountable. Gender: Efforts to ensure women are effectively included in project will be two-fold and involve (a) gender mainstreaming in all project structures and activities and benefits;  6 ISDS aind (b) a particular focus on women's special needs as a vulnerable group. * Gender Mainstreaming. The project will build on the experiences of RWSSP 1, and project preparation will include the development of a strategy and action plan which increases opportunities for women to actively participate in the design and management of drinking water schemes. This will address the structural factors which undermine women's equal participation - through such measures as reservation of posts for women in the WUC, as well as the institutional issues which affect their ability to meaningfully participate in public fora. Attention will also be paid to make the Board and project staff aware and sensitive to the equity and efficiency impacts of gender based discrimination. All monitoring information will be disaggregated by gender. Women's special needs. A major impact of the project would be to reduce the amount of time women spend collecting water. Funds and capacity building opportunities will be made available to women wishing to use this newly available time to engage in income generating activities. The experiences of the first project with such activities will be examined during preparation and options incorporated into a women's development strategy and action plan. In addition, the on-going project has a strong non-formal education (adult literacy) program and, as literacy is a major tool of empowerment, the second project will continue to support this activity. Land Acquisition: This issue will be closely examined as part of the social assessments during project preparation. If evidence is found which requires OD 4.30 to be invoked, a resettlement strategy and action plan will be prepared as appropriate. Environmental issues: A critical review of environmental issues in the first project will be undertaken to inform the design of the proposed Second RWSS Project. The review will include analysis of baseline information and indicators included in the project's monitoring system, observations during site visits, and public consultations in the project areas. Tihe effectiveness of processes developed under RWSSP I for screening, assessment, rrmitigation and monitoring of environmental impacts will be assessed. Institutional arrangements, as well as training and technical manuals developed under the first project will be reviewed. Lessons learned will be incorporated in an updated version of Environmental Assessment and Environmental Management Plan (EMP). The revised/updated EMP will outline the measures incorporated in the design, construction and operation of the project to mitigate the potential environmental impacts. The plan will include implementation schedule, monitoring program, estimated budget, capacity buliding and institutional measures necessary to mitigate and monitor the management plan. It will include cross-references to contract clauses linking the m-ritigation measures to the contract documents. Issues raised during the public consultation process will also be reflected in the EMP.  7 ISDS The Board would continue to be responsible for selecting -- using transparent eligibility criteria -- support organizations to assist communities to prepare and implement schemes; appraising, selecting, and financing schemes which fulfill environmental criteria, and monitoring key scheme-related activities and environmental indicators. II.D.4. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. The key stakeholders include Government and related agencies, NGOs, communities anid donors. As part of the social and environmental studies, public consultations will be held in the project districts to identify social and environmental issues seen by communities and sl:akeholders. The Board will consult potential beneficiaries and local NGOs about the project's social and environmental aispects during project preparation and implementation and EAJEMP, and IPDP reports will be made publicly available upon completion. E. Safeguards Classification. Category is determined by the highest impact in any policy. Or on basis of cumulative impacts from multiple safeguards. Whenever an individual safeguard policy is triggered the provisions of that policy apply. [ ] SI. - Significant, cumulative and/or irreversible impacts; or significant technical and institutional risks in management of one or more safeguard areas [X] S2. - One or more safeguard policies are triggered, but effects are limited in their impact and are technically and institutionally manageable [ ] S3. - No safeguard issues [ ] SF. - Financial intermediary projects, social development funds, community driven development or similar projects which require a safeguard framework or programmatic approach to address safeguard issues. F. Disclosure Requirements E.7vironmental Assessment/Analysis/Management Plan. Expected Actual Date of receipt by the Bank 3/31/2002 Date of "in-country" disclosure 3/31/2002 Date of submission to InfoShop 3/31/2002 Date of distributing the Exec. Summary of the EA to the ED (F'or category A projects) Resettlement Action Plan/Framework. Expected Actual Date of receipt by the Bank Date of "in-country" disclosure Date of submission to InfoShop Indigenous Peoples Development Plan/Framework. Expected Actual Date of receipt by the Bank 3/31/2002 Date of "in-country" disclosure 3/31/2002 Date of submission to InfoShop 3/31/2002 Prst Management Plan: Expected Actual  8 ISDS Date of receipt by the Bank Date of "in-country" disclosure Date of submission to InfoShop Dam Safety Management Plan: Expected Actual Date of receipt by the Bank Date of "in-country" disclosure Date of submission to InfoShop If in-country disclosure of any of the above documents is not expected, please explain why. Signed and submitted by Name Date Task Team Leader: Tashi Tenzing 111/02/01 Project Safeguards Specialists 1: Ruth J. Alsop/Person/World Bank Project Safeguards Specialists 2: Christophe Bosch/Person/World Bank Project Safeguards Specialists 3: Approved by: Name Date Regional Safeguards Coordinator: L. Panneer Selvam 11/07/01 Sector Manager/Director: Ridwan Ali 11/07/01 For a list of World Bank news releases on projects and reports, click here '5EAfCH __ F , iEEDBACK _ VF6 W5