The World Bank West Bengal Electricity Distribution Grid Modernization Project (P170590) Concept Environmental and Social Review Summary Concept Stage (ESRS Concept Stage) Public Disclosure Date Prepared/Updated: 08/08/2019 | Report No: ESRSC00736 Aug 08, 2019 Page 1 of 10 The World Bank West Bengal Electricity Distribution Grid Modernization Project (P170590) BASIC INFORMATION A. Basic Project Data Country Region Project ID Parent Project ID (if any) India SOUTH ASIA P170590 Project Name West Bengal Electricity Distribution Grid Modernization Project Practice Area (Lead) Financing Instrument Estimated Appraisal Date Estimated Board Date Energy & Extractives Investment Project 7/1/2020 9/3/2020 Financing Borrower(s) Implementing Agency(ies) Department of Economic West Bengal State Electricity Affairs, Ministry of Distribution Company Finance, GoI Limited Proposed Development Objective(s) Public Disclosure The project’s development objective is to improve the operational efficiency and reliability of electricity supply in selected areas of West Bengal. Financing (in USD Million) Amount Total Project Cost 400.00 B. Is the project being prepared in a Situation of Urgent Need of Assistance or Capacity Constraints, as per Bank IPF Policy, para. 12? No C. Summary Description of Proposed Project [including overview of Country, Sectoral & Institutional Contexts and Relationship to CPF] The proposed project would support the implementation of the 24x7 Power for All plan in the state of West Bengal by providing financial and technical support for investments in the modernization of electricity distribution network and institutional development of state distribution utility to improve operational efficiency in the sector and provide reliable supply to the consumers. Proposed project activities will mainly follow existing alignments/ROW and will include: a) replacement of distribution cables with Armoured Bunched cables, b) replacement of distribution level transformers, c) construction of GIS substations at distribution level, and d) underground cabling in a couple of towns. Aug 08, 2019 Page 2 of 10 The World Bank West Bengal Electricity Distribution Grid Modernization Project (P170590) D. Environmental and Social Overview D.1. Project location(s) and salient characteristics relevant to the ES assessment [geographic, environmental, social] The project activities, which will largely follow existing alignments/ROW, will be located in urban and rural areas of about 13 districts of West Bengal state with varying topography and geo-climatic conditions.Tthe state is broadly divided into three regions with different geomorphological types, viz (i) the eastern Himalayas (in the north), (ii) the eastern or Chhotonagpur Plateau, and (iii) the alluvial and deltaic Plains. The state has been divided into 6 agro- climatic zones, viz Hill Zone, Terai Zone, Old Alluvial Zone, New Alluvial Zone, Red Lateritic Zone and Costal Saline Zone. The mountain/hilly areas have sedimentary rock and are prone to erosion/sliding during the monsoon rains. The lateritic soils dominate the western side where the Vindhyan system ends. The south-west monsoon causes most of its rainfall during July-September period. The total annual water resource amounts to 694.30 billion cubic meters (bcm). The Ganga alone brings 525 bcm of water, but this is a channelized flow and has restricted use. It is observed that about 45 per cent of the internal water resource of the state is available in North Bengal and the South Bengal is endowed with the remaining 55 per cent.The per capita availability of water in West Bengal was 1,159 m3 in 2011. Absolute scarcity has been found in four districts where availability was below 500 m3/year/capita, including two districts where project will support activities - Nadia and Haora. From a groundwater availability perspective, out of 269 administrative blocks, 38 blocks are categorised as ‘Semi-critical’ and the rest are ‘Safe’. In terms of spatial distribution of different types inland wetlands in the districts of West Bengal, WSL class is most abundant, occupying an area of 20,956.49 ha in Maldah district. Lakes/ponds in Murshidabad occupy 8,069 ha and swamps in Dinajpur cover 5,477.68 ha. Another important type of wetlands, viz. COM/OL occupy 6,543.14 ha in Murshidabad district. Public Disclosure West Bengal has a recorded forest area of 11,879 sq km which constitutes 13.38 per cent of the State’s geographical area. The forests occur mainly on the slopes of the Darjeeling Himalayas, the Himalayan foothills, the lateritic tracts in the southern part of the state, and in the Sundarban delta region.The state of West Bengal is blessed with rich bodiversity endowment mostly in the northern districts in Darjeeling hills and Sunderbans delta in the south . Protected areas of West Bengal cover 4% of the state area. West Bengal is the fourth most populous state (91.2 million people) in the country and has the second highest density (1028 persons/sq km) among the larger states of India. Almost 49 percent of state population is located in these thirteen project districts. The concentration of SC and ST population in project districts is little higher than the state percentage – the concentration of SCs is 24.16 percent, and STs is 7.46 percent to total population of project districts, whereas they are 23.5 percent and 5.8 percent respectively at state level. The female percentage to total population, however, is the same for the project districts and for the state – it is 48.7 percent at both levels. The household electrification levels is the state as well as the project districts is close to 99 percent. D. 2. Borrower’s Institutional Capacity The project will be implemented by WBSEDCL which is a company owned by the Government of West Bengal (GoWB), and is among the better performing publicly owned power distribution companies in the country. It also has prior experience working with the World Bank in Digha, where the Bank supported underground cabling work in that coastal resort town. The safeguards management in that project is by and large satisfactory, and WBSEDCL continues to make corrections as deficiencies in implementation are identified. WBSEDCL was also previously supported by the Bank through a DfID funded grant during the restructuring of the erstwhile West Bengal State Electricity Board. As part of conducting the project’s Environmental and Social Assessment (ESA), the E&S capacity of WBSEDCL will also be Aug 08, 2019 Page 3 of 10 The World Bank West Bengal Electricity Distribution Grid Modernization Project (P170590) assessed with focus on new standards (ESS2, ESS4 and ESS10), and a capacity building program will be agreed and reflected in the Environmental and Social Commitment Plan (ESCP). II. SCREENING OF POTENTIAL ENVIRONMENTAL AND SOCIAL (ES) RISKS AND IMPACTS A. Environmental and Social Risk Classification (ESRC) Moderate Environmental Risk Rating Moderate The project is rated as “Moderate” for environmental risk as the most extensive activities are mainly along existing alignments and in most cases will involve cable replacement. Only short stretches of new alignment may be required but sensitive areas, if any, can and will be avoided. In this case, impacts are anticipated to be localized and short- term, i.e., taking place only during excavation and the laying of underground cable and distribution lines. Underground cabling may have some additional safety related impacts that may need to be mitigated during project implementation since the work will need to be undertaken in busy urban areas. GIS substations have relatively small footprints and are not likely to create significant negative impacts as there is some flexibility in choosing their location. WBSEDCL has some prior experience with working with the Bank and satisfactorily implemented an electricity distribution project in the coastal resort town of Digha. The Bank team will work closely with WBSEDCL for ensuring that ESF principles and requirements are well understood and addressed and the ESCP is prepared consistently with the risk profile of this project. Social Risk Rating Moderate Public Disclosure As outlined above, the major activity (the laying of underground cable) will largely be carried out on the existing overhead line alignment and would attempt to avoid all possible socially sensitive locations. The project, however, has some social impacts to manage as it will need some land for GIS substations at the distribution level and there could be temporary impacts during the installation of underground cabling, especially for roadside establishments. The WBSEDCL proposes to use Government lands and wherever private lands are required, they will be arranged through direct purchase, lease or voluntary land donation, in an attempt to avoid involuntary displacement.. WBSEDCL has experience in dealing with social aspects as it is currently implementing an ESMF and a RAP for the Bank-assisted Underground Electrical Cable project in Digha. Based on the ESA studies, the WBSEDCL will prepare an ESMF for the project. With the given minimal risks and existing capacities, the project is rated “Moderate” for social risks. B. Environment and Social Standards (ESSs) that Apply to the Activities Being Considered B.1. General Assessment ESS1 Assessment and Management of Environmental and Social Risks and Impacts Overview of the relevance of the Standard for the Project: Most of the activities will follow existing alignments, thus potential risks and impacts are anticipated to be localized and short-term taking place only during the construction phase and would include: water and soil contamination from wastewater generated from construction/workers camps; safety of workers and other site users; handling and management of spillage of hazardous materials; some incidental damage to vegetation; possible land slips due to placing electric polesdisposal of spoils and air pollution due to fugitive dust from earthwork; cutting of trees; land degradation from project induced development; impacts on archaeological and historical sites/assets, culturally and Aug 08, 2019 Page 4 of 10 The World Bank West Bengal Electricity Distribution Grid Modernization Project (P170590) socially important common properties; distress of public/community due to disruption of utility services; and impacts on non-titleholders due to land purchases (if any). The principle of “mitigation hierarchy” will be adopted during development of management tools like Environmental and Social Assessment (ESA), Environment and Social Management Plan (ESMP), and Biodiversity Management Plan (if and where additionally needed), to address environmental risks and impacts during planning, design and implementation stages. For managing social risks, the Borrower will prepare Resettlement Policy Framework (RPF) Indigenous Peoples Development Framework (IPDF), and related instruments for implementation. Areas where “Use of Borrower Framework” is being considered: None. The borrower/government has not proposed for adoption of borrower’s E&S Framework to address environmental risks and impacts of the project. The project will apply the Bank’s new Environmental and Social Framework and its Environmental and Social Standards as well as with the Government’s E&S requirements. ESS10 Stakeholder Engagement and Information Disclosure Given the extensive nature of project activities, several diverse groups of stakeholders will be involved in the project’s design, implementation and decision-making. Currently identified stakeholders include: state government departments of power, forests, horticulture, revenue and tourism; local government authorities - municipal or gram panchayats will also be important where underground cabling is proposed; local communities in the project impact areas; civil society organizations; traders; customers of WBSEDCL; and the project-affected people. The exact composition of stakeholders may change depending on final project design. Consultation and disclosure of Public Disclosure information with stakeholders will be core during both the planning and implementation stages of project. The borrower will prepare Stakeholder Engagement Plan (SEP) during preparation which will be a part of the ESA. Updating of SEP proportionate to the nature and scale of project impact during implementation will be a condition in ESCP. B.2. Specific Risks and Impacts A brief description of the potential environmental and social risks and impacts relevant to the Project. ESS2 Labor and Working Conditions Project will involve: a) Direct workers (WBSEDCL employees); b) contracted workers engaged in construction works, consultancy services firms (for specific deliverables under the project; technical support to WBSEDCL for preparation and implementation of ESMP, Resettlement Action Plan, Indigenous Peoples Plan, etc.); c) primary supply workers could include suppliers of equipment necessary for the project functions. Involvement of community workers is not envisaged at present due to the nature of the project. Construction may require migrant workers from other parts of the state and sometimes from other states depending on the contractors’ strategy. The majority of the labor force is generally available within the state given the availability of skilled labor in elecitricity works in the state. Preparation of ESA will explore the following aspects as part of Labor Management Procedures to be prepared: applicability of labor laws and, non-discrimination and equal opportunity, grievance mechanism to all workers, occupation health and safety aspects, prevention of use of child labour / forced labor, etc. Aug 08, 2019 Page 5 of 10 The World Bank West Bengal Electricity Distribution Grid Modernization Project (P170590) ESS3 Resource Efficiency and Pollution Prevention and Management The ESA will inform decision-making processes in the Project to avoid and minimize project’s environmental risks and impacts and optimize resource use and pollution prevention. With respect to Resource Efficiency, the project preparation and the ESA process will identify feasible measures for efficient (a) energy use; (b) water usage and management to minimize water usage during construction, conservation measures to offset total construction water demand and maintain balance for demand of water resources; and (c) raw materials use by exploring use of local materials, ash based products for construction; and explore use of innovative technology so as to minimize project’s foot prints on finite natural resources. With respect to Pollution Management, the project will develop, as part of the ESA process, prevention and management measures to offset risks and impacts of pollution from potential sources such as dust and emission during construction, and from haulage vehicles, material stockpile; effluents and wastewater from labor camps, construction sites; spillage or leakage during handling of chemical admixtures, hazardous materials like oils, high strength diesel, used oil, battery wastes etc.; and disposal of non-hazardous wastes (municipal wastes) generated during project implementation period. With respect to Carbon Emissions, the ESA will also estimate carbon and GHG emissions due to implementation of project, identify feasible measures for reducing such emissions, creating carbon sink through plantations, and climate resilient measures to suite local needs and challenges, and by possible use of alternative technologies. ESS4 Community Health and Safety Public Disclosure At this stage, community health and safety is most likely to be a concern in the underground cabling component, since this may increase local congestion by restrict vehicular movement and foot traffic in densely populated/highly trafficked areas. The ESA will evaluate the risks and impacts of the project on health and safety of the communities during project life cycle, and propose mitigation measures in accordance with the mitigation hierarchy, such as emergency response measures that will be incorporated into the ESCP. It will also assess the extent to which migrant labour-related issues are likely to be encountered during project implementation. The ESA will assess exposure of communities to construction stage-related traffic, accident, and health and safety issues. Further, all works and operations will be planned, designed and implemented to comply with the WBG EHS guidelines. ESS5 Land Acquisition, Restrictions on Land Use and Involuntary Resettlement Land will be required in minimal quantities for construction of GIS substations. Laying of underground cabling does not require land but will cause temporary constraints to the local population in accessing their properties located around the cable works. Similarly the business establishments located around the cable works may incur business losses temporarily during the construction period . The impacts on private and community owned structures could be avoided through alternative options. The WBSEDCL proposes to use Government lands and wherever private lands required, they will be arranged through direct purchase, lease or voluntary land donation. Based on a preliminary assessment, the WBSEDCL indicates that Department/Government lands are available for substations construction. The approach to managing all social aspects including land acquisition aspects will be assessed during the project preparation through ESA studies, at which time compliance with the requirements of ESS5 will also be assessed. Similarly the treatment of non-title holders will be studied, in line with the requirements of ESS5. Commensurate mitigation instruments such as ESMF will be prepared and these will guide the preparation of site-specific Aug 08, 2019 Page 6 of 10 The World Bank West Bengal Electricity Distribution Grid Modernization Project (P170590) RAPs/ESMPs. An ESCP will be agreed with the borrower based on the findings of the ESA and the Bank’s Environment and Social Due Diligence (ESDD) on SEP provisions, institutional arrangement for implementation, capacity building measures and the monitoring plan. ESS6 Biodiversity Conservation and Sustainable Management of Living Natural Resources It is expected that vast majority of project activities would follow existing alignments and will only use temporarily small parcels of landclose to inhabited areas. Therefore, any additional disturbance is likely to be confined to the construction phase only. While the project districts are featuring wildlife sanctuaries, national parks, elephant reserves and migration corridors, the impact of project activities on these is expected to be minimal as vast majority of project activities would follow existing alignments and the type of infrastructure considered is implemented essentially near settled areas and not in natural areas. Where short stretches of new alignments are required, sensitive areas, if any, will be avoided. The ESA would however evaluate any impact of project activities on these. The risks and impacts of the project on biodiversity; access and livelihood of people dependent on these protected areas and other associated ecosystem services will be determined ; and depending on identified significant direct or indirect impacts, appropriate biodiversity mitigation and /or offset measures will be included in the ESMP, if required, as well as in ESCP. ESS7 Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Local Communities About forty-one scheduled tribal (ST) groups are concentrated in the state West Bengal and they are located in Public Disclosure southern, western and northern parts of the state. The ST population in project districts is a little higher than it is in the state as a whole; it is 7.46 percent of the total population in project districts, but it is 5.8 percent at a statewide level (2011 census). Among the project districts, in 8 districts the ST population is more than the state average; and in 6 districts (Alipuruar, Jalpaiguri, Darjeeling, Rajganj, Dakshin Dinajpur and Purlia), the ST population is more than 15 percent of the total population. The impacts on any STs are expected to be minimal as the majority of the works relate to the replacement of the existing distribution network with a more secure electrical network, and these works will take place along pre-existing alignments. The Santals constitute more than half (51.8 percent) of the tribal population in the state. The Oraons, Mundas, Bhumijes and Koras constitute 14 percent, 7.8 percent, 7.6 percent and 3.2 percent respectively. Besides, Lodhas, Mahalis, Bhutias, Bedias etc. exist in small numbers. Expected improvements in the electrical distribution network under the project in these areas will facilitate power availaibility and boost the quality of life among the poor and tribal populations involved. Following the ESA studies, commensurate instruments such as the Indigenous Peoples Planning Framework (IPPF) will be developed and subsequently listed in the ESCP. Sub-project specific Indigenous Peoples Plans (IPPs) will also be developed as required. Further, Free, Prior and Informed Consent (FPIC) will be applicable in cases involving impacts on land, livelihoods, cultural heritage and in case FPIC cannot be ascertained, the project will not proceed with those sub-projects/activities. The same shall be stated in the ESCP. ESS8 Cultural Heritage Aug 08, 2019 Page 7 of 10 The World Bank West Bengal Electricity Distribution Grid Modernization Project (P170590) While the project districts have ASI recognized monuments, the impact of project activities on these is expected to be minimal as the vast majority of project activities would follow existing alignments. For the new shorter alignments, where required, these monuments can and will be avoided through re-routing or other changes in design. The ESA would, in any event, evaluate any direct or indirect impact of project activities on these cultural assets or determine the presence of any others that may not be listed but could be of significance. Depending on the exact determination of the nature and scale of the project’s risks and impacts, mitigation measures or a plan will be prepared as part of the ESMP, and will be incorporated into the ESCP as required. Procedures for handling chance finds will be determined during the ESA and made part of the ESMP to handle any such situations during project implementation. ESS9 Financial Intermediaries At this stage Financial Intermediaries are not likely to be involved in the project. C. Legal Operational Policies that Apply OP 7.50 Projects on International Waterways No OP 7.60 Projects in Disputed Areas No Public Disclosure III. WORLD BANK ENVIRONMENTAL AND SOCIAL DUE DILIGENCE A. Is a common approach being considered? No Financing Partners Not being considered at this stage. B. Proposed Measures, Actions and Timing (Borrower’s commitments) Actions to be completed prior to Bank Board Approval: Actions to be completed prior to Appraisal: A systematic ESA will be undertaken by WBSEDCL and instruments commensurate with issues identified to be handled in subsequent stages would be prepared. At this stage, it is envisaged that the following E&S instruments listed will have to be available in acceptable form by appraisal in order to allow for an informed decision: a) Environmental and Social Assessment Report and preparation of E&S risks and impacts management tools for all investments identified and selected for implementation. Based on ESA, generic/specific ESMP and RAP should be prepared and available by appraisal b) Resettlement Policy Framework and Indigenous (or Tribal) Peoples Policy Framework (IPPF) c) Resettlement Action Plan (RAP), Indigenous Peoples Plans (IPPs)Tribal Development Plan (if required) and Labor Management Procedures including provisions to manage labor influx and GBV issues would be available by appraisal. Aug 08, 2019 Page 8 of 10 The World Bank West Bengal Electricity Distribution Grid Modernization Project (P170590) d). Detailed Stakeholder Engagement Plan will be prepared for continuous engagement with stakeholders for preparation and implementation of project. The SEP for project preparation will be reported in ESA report. The updating of SEP. The draft SEP will be completed before project appraisal and updating of SEP during implementation proportionate to the nature and scale of project will be a condition in ESCP. e) Environmental and Social Commitment Plan. Possible issues to be addressed in the Borrower Environmental and Social Commitment Plan (ESCP): (a) Processes and timelines for obtaining of requisite statutory clearances at local, state and national levels for future tranches; and specific timelines for investments already identified, if not obtained by Appraisal; (b) scope and content, terms of reference for Biodiversity Management Plan, if additionally required, for future investments; (c) preparation of ESA, ESMP following the ESA, RPF, IPPF, RAP and IPP (if required) for future tranches, (d) the implementation and updation of SEP; (e) implementation of E&S staffing and capacity building program; and (f) provisions for managing unanticipated risks and impacts. C. Timing Tentative target date for preparing the Appraisal Stage ESRS 03-Feb-2020 IV. CONTACT POINTS World Bank Public Disclosure Contact: Rohit Mittal Title: Senior Energy Specialist Telephone No: 5785+47754 / Email: rmittal@worldbank.org Borrower/Client/Recipient Borrower: Department of Economic Affairs, Ministry of Finance, GoI Implementing Agency(ies) Implementing Agency: West Bengal State Electricity Distribution Company Limited V. FOR MORE INFORMATION CONTACT The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 473-1000 Web: http://www.worldbank.org/projects VI. APPROVAL Task Team Leader(s): Rohit Mittal Aug 08, 2019 Page 9 of 10 The World Bank West Bengal Electricity Distribution Grid Modernization Project (P170590) Practice Manager (ENR/Social) Magda Lovei Recommended on 26-Jul-2019 at 09:21:4 EDT Safeguards Advisor ESSA Maged Mahmoud Hamed (SAESSA) Cleared on 08-Aug-2019 at 13:18:5 EDT Public Disclosure Aug 08, 2019 Page 10 of 10