E4672 V3

 Tamil Nadu Sustainable Urban Development Project (TNSUDP)




                     Executive Summary of
Draft Environmental and Social Management Framework (ESMF)
                               &
 Draft EIA / SIA of Chennai Storm Water Drainage sub-project

                     November 26, 2014




  Tamil Nadu Urban Infrastructure Financial Services Limited




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                  Tamil Nadu Sustainable Urban Development Project
                  Environmental and Social Management Framework

                                 EXECUTIVE SUMMARY

BACKGROUND

1.0       The World Bank has had a long partnership with the Government of Tamil Nadu
(GoTN) in the area of urban development starting from the 1980s with Chennai centered
MUDP-I & II and Tamil Nadu Urban Development Project (TNUDP-II & III). These projects,
in addition to creation of infrastructure assets, have influenced reforms in urban sector
as well as build new institutions such as the Tamil Nadu Urban Development Fund
(TNUDF), a Trust established to fund urban infrastructure projects in Tamil Nadu. The
Tamil Nadu Urban Infrastructure Financial Services (TNUIFSL) is the Fund Manager of
TNUDF. The Bank funded projects have been going hand-in-hand with urban sector
reforms in the state where Tamil Nadu has been one of the leading states In India. In
continuation to this, it is proposed to implement urban infrastructure projects under
“Tamil Nadu Sustainable Urban Development Project (TNSUDP)” with the aid of the
World Bank with a total outlay of about USD 600 M.

2.0     The Project Development Objective (PDO) for the proposed TNSUDP is “to
demonstrate improved urban management practices and to improve urban services in
participating Urban Local Bodies (ULBs) in a financially sustainable manner”. The project
will have three components viz., 1. Model City Component; 2. Urban Investment
Component and 3. Urban Sector Technical Assistance (TA) Component. The main
objective of model city component is to demonstrate new models of urban management
with a focus on building strong governance and financial sustainability at the ULB level.
The main objective of urban investment component is to help participating ULBs improve
urban services with an emphasis on the urban environment. This has three sub
components viz., loans and grants to ULBs, credit enhancement and TA. The main
objectives of urban sector TA component are to improve institutional strengthening,
municipal e-governance, project preparation and management.
ENVIRONMENTAL AND SOCIAL POLICY OF TNUDF:
3.0 The Policy of TNUDF is to promote the principles of Environmental sustainability
and Social relevance in the projects funded by TNUDF.

ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK:
4.0     TNUIFSL has reflected its commitments to the environmental and social policy of
TNUDF, through Environmental and Social Framework (ESF) as approved by the
Government of Tamil Nadu during the year 2006 for the projects that it finances. The ESF
document has now been revised and updated based on the provisions of new Acts,
Legislations, revisions in the Operational Policies of the World Bank, besides the
experience and lessons learnt while implementing TNUDP-III. The revised framework is
now named as Environmental and Social Management Framework (ESMF) and will now
be applicable to the proposed Tamil Nadu Sustainable Urban Development Project
(TNSUDP).


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5.0    The ESMF has two volumes which outline the policies, assessments and
procedures that will enable TNUDF to ensure that subprojects that it funds under
TNSUDP are developed in accordance with ESMF and are adequately protected from
associated risks. The ESMF also aims to sensitise borrowers in the assessment and
management of environmental and social issues arising in urban infrastructure projects.

ENVIRONMENTAL SAFEGUARD FRAMEWORK:
6.0 Regulatory Framework: The National and state level environmental laws and the
Operative Policies of the World Bank are applicable to TNUIFSL financed projects. The
most important of the applicable laws are Water (Prevention And Control of Pollution)
Act, 1974, Tamil Nadu Water (Prevention And Control of Pollution) Rules, 1974, The
Water (Prevention And Control of Pollution) Cess Act, 1977, Forest (Conservation) Act,
1980, Air (Prevention and Control of Pollution) Act 1981, Coastal Regulation Zone (CRZ)
Notification, 2011 (S.O.19(E), dt. 06/01/2011, EIA Notification, 2006 (S.O.1533(E),
dt.14/09/2006) etc and the World Bank OP 4.01 Environmental Assessment.

7.0 ENVIRONMENTAL CATEGORISATION OF PROJECTS: The urban infrastructure
projects depending on location and the nature of project activities will have varying
impacts on urban environment. TNUIFSL has categorized the projects into different
categories – E1, E2 and E3 linked to severity of impacts and regulatory requirements. E1
projects require project specific EA by an independent agency, E2 projects require project
specific EA as part of DPR and E3 projects require only Generic EMP.

SOCIAL SAFEGUARD FRAMEWORK
8.0 REGULATORY FRAMEWORK: The relevant national and state level laws are The
Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and
Resettlement Act 2013, The Street Vendors (Protection of Livelihood and Regulation of
Street Vending) Act, 2014, The Scheduled Tribes and other Traditional Forest
Dwellers(Recognition of Forest Rights) Act, 2006, Right to Information Act, 2005 and the
World Bank Operative Policies include, OP 4.12 Involuntary Resettlement and World
Bank Policy on Access to Information and Disclosure

9.0     SOCIAL CATEGORISATION OF PROJECTS: TNUIFSL has categorized the projects
into three categories namely S1, S2 and S3 based on the severity of impacts. Entitlement
matrix provides for different impact categories viz. loss of Land, Residential Structures,
commercial structures, Community Assets, Impact to title holders, tenants and
leaseholders, non-title holders, Loss of Livelihoods, Impacts to Vulnerable Households,
and Unidentified impacts and is in accordance with The Right to Fair Compensation and
Transparency in Land Acquisition, Rehabilitation and Resettlement Act 2013 and OP 4.12
of the World Bank.

ESMF ADOPTION FRAMEWORK:
10.0     ESMF will be adopted in both preparation of projects under Technical
Assistance and implementation of projects.



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11.0      Project Preparation: EIA/SIA shall be prepared while preparing the DPR. Draft
reports shall be forwarded to World Bank for approval and the final version of EIA/SIA
and EMP and RAPs reports in English with a non-technical summary in Tamil, shall be
disclosed in the websites of the ULBs/relevant departments and TNUIFSL and will be
made available in places accessible to the local people.
Project Appraisal:
    a. The projects shall be screened by TNUIFSL for Environmental and Social impacts
        and accordingly environmental and social category of the project is determined.
        EIA/SIA, LA/R&R budget, compliance with ESMF etc. shall be the borrowers’
        responsibility.
    b. Prior to award of contracts, the borrowers shall submit the Readiness Certificate
        certified by the borrower fulfilling the requirements of Social Safeguards.
    c. Borrowers will ensure implementation of ESMF during respective stages and
        TNUIFSL monitors all projects that it finances to ensure conformity to standards.
    d. Monitoring of Environmental and Social components by TNUIFSL will be carried
        out through environmental and social compliance reports submitted by the
        borrower/ PIA and through field visits and the filed visits undertaken by safeguard
        specialists of TNUIFSL and CMA.

12.     ESMF Audit: TNUIFSL through independent consultants will undertake annual
audits to review the status of ESMF compliance of all E-1/S1 projects and sample E2/S2
projects. The audit will be carried out during June-July of every year for the activities
completed or initiated during the previous financial year. The draft report shall be
forwarded to the World Bank and upon approval the final audit report will be disclosed
and any remedial measures identified in the audits will be attended as appropriate. .

INSTITUTIONAL FRAMEWORK
13.0     TNUIFSL: TNUIFSL will assist the sub-borrowers in preparation of safeguard
document for the sub-projects and then supervise and monitor implementation of social
and environmental safeguards for all sub-projects under TNSUDP as per this ESMF
through Environmental and Social Safeguard Managers.

14.0     Borrowers and Implementing Agencies: CMA and PIA will have dedicated
environmental and social experts with appropriate qualification and experience for
coordinating with Urban Local Bodies for ensuring ESMF compliance and submit the
relevant documents/ reports to TNUIFSL.

15.0 CoC will have dedicated Environmental & Social experts and Project Management
consultants will have safeguard specialists with appropriate qualification and experience
for supporting the implementation of safeguard actions including RAP and submit
relevant documents/reports to TNUIFSL.

16.0     Capacity Building: TNUIFSL envisages capacity building on environmental and
social safeguards, technical aspects etc. for its borrowers, by organising annual


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sensitization programs, workshops, training programs, etc. in co-ordination with training
institutions experienced in various aspects of urban infrastructure projects and World
Bank.

17.0 TNUIFSL also proposes enhancing capacity of staffs and ESS managers through
orientation programs, trainings, exposure visits to similar projects implemented, courses
and participation in both national and international training courses and
seminars/workshops, etc. The proposed capacity building activities will be supported
through appropriate Technical Assistance of TNSUDP.




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 Environmental and Social Assessment of Integrated Storm Water Drainage Project for
                    the Expanded Areas of Chennai Corporation
                                    Executive Summary
INTRODUCTION

1.     Chennai City the capital of Tamil Nadu is a coastal city located on the coast of
Bay of Bengal. The Corporation of Chennai (CoC) has expanded its area during 2011
and has prepared Detailed Project Report for the Integrated Storm Water Drainage
System (ISWD) to the expanded area of Chennai Corporation. The ISWD sub-project
for Adayar and Cooum Basins are proposed to be implemented under the World
Bank assisted Tamil Nadu Sustainable Urban Development Project (TNSUDP).
2.    The project as per the ESMF, is categorized as E2 category with lesser impacts
than E1 projects and require Environmental assessment to be carried out and
management measures be prepared.
ENVIRONMENTAL ASSESSMENT

3.      The EA was carried out with an objective to identify and assess the
environmental impacts arising out of implementation of the Storm Water Drain
Construction and develop and Environmental Management Plan (EMP) to mitigate
the identified impacts. The EA involved screening of the project, quantitative and
qualitative surveys to collect the relevant information, field visits to the project area,
catchment areas, canals, etc. and consultations with the community.
PROJECT AREA
4.      Chennai is the fourth largest metropolitan city in India with a population of
4.68 million (as per census 2011). Corporation of Chennai is responsible for provision
of civic amenities with in Chennai including provision of Storm Water Drains (SWD).
The Project area comprises of the expanded area of Chennai Corporation covering an
area of 53.79 Sq. Km comprising 3 zones of the Corporation of Chennai, namely
Ambattur, Valasaravakkam, Alandur. Two rivers meander through Chennai, the
Cooum River through the centre and the Adyar River to the south. A part of the
Adyar river forms a tidal creek before joining the sea.
5.      The city has about 205 Km of drains of width 0.60 m or more and total drains
of about 1660.31 km. Storm water drainage system in the project area is not
sufficient and adequate. The drains do not have proper connectivity and ultimate
linkage to natural waterways/ water bodies for efficient disposal of storm water
runoff.
6.   Considering these aspects, a Storm Water Drainage (ISWD) project under
TNSUDP has been proposed for the expanded areas of Chennai Corporation.
PROJECT DESCRIPTION
7.     The project area for the Storm Water Drainage (ISWD) in the expanded areas
of Chennai Corporation has been divided based on linkages in two drainage basins
namely Cooum and Adyar.


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8.     Each drainage area is further sub-divided into 16 watersheds based on the
natural barriers like river, drains, channels, railway lines, roads & highways and
topography of the area. Entire expanded area drains the storm water into Bay of
Bengal mainly through Cooum, and Adyar rivers. The project includes construction
of new drains and reconstruction/augmentation of existing drain, totalling upto
1002.8 Km at an estimated cost of about INR 1100.00 Crores.
ENVIRONMENTAL REGULATIORY REQUIREMENTS
9.     A review of national, state, regional and World Bank environmental laws,
rules and regulations relevant to the proposed ISWM project indicates that in
addition to the safeguard policies of the Bank and construction safety requirements,
the project would require permission to cut the trees that will be cut during the
construction phase of the project.
BASELINE ENVIRONMENTAL PROFILE
10.     Chennai city is underlain by various geological formations from ancient
Archaeans to recent Alluviums and the climate is generally hot and humid. The
ambient air quality ranges between a hight 175μg/m3 at Thiruvottiyur to a low of
8μg/m3 at NEERI CSIR campus. The noise levels are generally high in commercial
areas and the soil/sediment quality in the city reflects that there is no toxic element
present beyond to the safe limits. Ground water with a pH of 7.4-7.9, electrical
conductivity 780-1288 μmho/cm, Total Dissolved Solids of 580-910 mg/l, total and
calcium hardness of 260-482 mg/l and 168-340 mg/l, the ground water quality is
within the prescribed standards.
ASSESSMENT OF IMPACTS
11.    The major impacts of the project are expected to be during the construction
phase leading air and noise quality deterioration, Health and Safety impacts to the
works and local communities, traffic diversion and utility shifting, access to private
properties, back flow of water from the canals, solid waste dumping and disposal of
excavated silt from the drains.
12.    The project is expected to lead to cutting of about 41 trees. In addition,
another 144 trees located in the construction area of the proposed drains. The
project proposes to carry out compensatory plantation of 10 times the trees that
may be lost due to the project.
ENVIRONMENTAL MANAGEMENT PLAN (EMP)
13.     To mitigate the identified impacts an Environmental Management Plan and
Environmental Management Cost has been prepared. The likely adverse impacts on
various environmental components, viz., Land, Air, Water, Biodiversity and Social &
Aesthetic have been assessed. Based on the identified impacts’ potential, the
management practice to be followed for minimizing and mitigating the impacts on
the surround environment, the activity wise Environment Management Plan is
drawn. In summary, the expected impacts are of small scale, temporary and site
specific depending on the implementation of the project and will not exceed the
construction and major environmental norms. The EMP will be form part of the
contract document.



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14.     In addition the project proposes (i) groundwater Recharge through
construction of catchpits and recharging structures in the proposed storm water
drainage network at every 90 m interval (ii) construction of sediment trap at the
confluence point of drain with the water body, so that the sediments are deposited
in the silt trap (iii) design of box type drains in RCC with cover on top, MS frame with
wire mesh for major drains, flow of storm water through FRP gratings and public
awareness programs to minimize the solid waste deposits in the drains.
15.    To avoid back flow from the rivers in to the drains, flap gates are proposed in
the drains. Further, Anna University is carrying out an overall storm water drainage
modelling, based on which suitable mitigation measures will be implemented to
manage flooding and other impacts (if any).

16.     A detailed environmental management plan has been developed integrating
these aspects and also the measures monitoring the implementation of EMP. A
budget of about Rs. 4.2 million for drains flowing into Cooum river and Rs. 3.8 million
for drains flowing into Adyar river have been provided various EMP measures of the
project.

17.     The EMP shall be implemented by the Corporation of through its dedicated
environmental and social safeguards specialists and will submit monthly reports on
the status of compliance with the ESMF requirements to TNUIFSL.


18.      SOCIAL IMPACT ASSESSMENT. The proposed Storm water Drainage sub-
project includes construction of micro and macro canals, feeder and arterial drains,
etc. in extended area of Chennai. A social impact assessment was carried out for this
sub-project, which confirmed that about 450 families mostly squatter families
belonging to poor and vulnerable sections including 110 women headed families (
25%) will be displaced and require resettlement. Some shopkeepers will also be
affected. It is observed from the survey of affected structure 36.48 % are Concrete
structures and asbestos sheet houses are 22.63 %, 15.38 % are thatched structures.
However, no private land acquisition is involved since the improvements will be
restricted to already available ROW. The impacts will be mostly observed in macro
cancal since these canals are required to be widened and in case of other work
packages for feeder and arterial drain works, the adverse social impacts are not
anticipated any adverse impacts, but there could be temporary impacts in the form
loss of access to their houses, shop, etc.


19.    RESETTLEMENT ACTION PLAN (RAP). A RAP is under preparation describing
baseline socio-economic charterstics of displaced families, alternative resettlement
measures, institutional and implementation arrangements including grievance
mechanisms and monitoring and evaluation, timetable and budget is under
preparation. The preliminary cost of R&R implementation is expected to be about
INR. 300 Million And will be met by CoC’s own sources. The census survey is
completed and data analysis is in progress and focus group consultations and


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meetings are expected to be carried out soon. In order to implement RAP and other
safeguard measures, two safeguard specialists will be inducted in Corporation of
Chennai (CoC) and Project Management consultants will have safeguard specialists in
their Team to support RAP implementation. In addition to these adverse impacts,
there will be downstream impacts during storm surge and a local institute having
expertise in this area is carrying out overall storm water drainage modelling to assess
impacts and if the study identifies adverse impacts, then mitigation measures will
put in place for advance warning systems and other eventualities.


20.   The full version of draft ESMF, first draft EIA and SIA/RAP are available at
www.tnuifsl and http://www.chennaicorporation.gov.in and www.cma.tn.gov.in. These
documents are subject to change during appraisal.




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