October 2012
TDF / SWMTSC
OUTPUT-BASED AID FOR MUNICIPAL SOLID WASTE MANAGEMENT IN NEPAL
Environmental and social management framework
1
OBA NEPAL - DRAFT ESMF
Contents
List of abbreviations
1Introduction
2Project description
2.1Project objectives
2.2Project design
2.3Project components
2.4Participating municipalities
2.5Proposed interventions under the OBA Project
3Environmental and Social Risks of the Proposed OBA interventions
4Framework for Managing Environmental and Social Risks Associated with the OBA Project
4.1Introduction
4.2Environmental and Social Categorization of OBA Interventions
4.3Environmental and social considerations in the planning of OBA interventions
4.4Environmental and Social Management Plan (ESMP)
4.5Environmental and social safeguards monitoring and auditing
5Institutional Capacity for Environmental and Social Safeguards Management
5.1Institutions and key stakeholders
5.2Roles and responsibilities
5.3Assessment of institutional capacity to plan, implement and monitor safeguard measures
5.4National Legislation and Policies Relevant to the OBA Interventions
6Stakeholder Consultations and Communication
6.1Stakeholder consultations
6.2Communication
Annex 1: Key data for each Municipality in the Initial Pipeline and the Proposed OBA Interventions
Annex 2:Environmental and Social Framework Procedures
Annex 3:Screening Checklists
Annex 4:Potential Environmental Issues and Impacts in Solid Waste Management
Annex 5:Anticipated Environmental and Social Impacts and Mitigation Measures
Annex 6:GoN Acts and Guidelines relevant to the OBA Project
Annex 7:Template for an ESMP
Annex 8:ESMP Overview and Monitoring Template
Annex 9:Report on Stakeholder Consultations carried out to date
1
OBA NEPAL - DRAFT ESMF
List of abbreviations
AP / Affected peopleCBO / Community Based Organization
CDO / Chief District Officer
EHS / Environmental, Health, and Safety
EIA / Environmental Impact Assessment
EM / Ethnic Minority
EMF / Environmental Management Framework
EPA / Environmental Protection Act
ERP / Environmental Protection Regulation
ESMF / Environmental and Social Management Framework
ESMP / Environmental and Social Management Plan
FS / Feasibility Study
GoN / Government of Nepal
GPOBA / Global Partnership for Output Based Aid
IPDP / Indigenous Peoples Development Plan
IEE / Initial Environmental Examination
IFC / International Finance Corporation (World Bank Group)
IFVA / Independent Financial Verification Agent
IP / Indigenous Peoples
IPDP / Indigenous Peoples Development Plan
ITVA / Independent Technical Verification Agent
LSGA / Local Self Governance Act 1999
M&E / Monitoring and Evaluation
MoEST / Ministry of Environment, Science and Technology
MoPPW / Ministry of Physical Planning and Works
MUD / Ministry of Urban Development.
NEIA / National Environmental Impact Assessment
NGO / Non Government Organization
OBA / Output Based Aid
PIM
PPPUE / Project Implementation Manual
Public-Private Partnerships for the Urban Environment
SMF / Social Management Framework
SWM / Solid Waste Management
SWM-SIP / Solid Waste Management Service Improvement Plan
SWMTSC / Solid Waste Management Technical Support Centre
TDF / Town Development Fund
TLO / Tole Lane Organization
UGDP/ETP / Urban Governance and Development Program/Emerging Towns Project
VG / Vulnerable Group
WB / World Bank
1Introduction
This Environmental and Social Management Framework (ESMF) document is prepared as an addendum to the existing Environmental Management Framework (EMF)[1] prepared under the Urban Governance and Development Program / Emerging Towns Project (UGDP/ETP) in order to accommodate environmental and social risks specific to the OBA intervention on municipal waste management. Given that the waste management OBA pilot project is also open to non-UGDP/ETP municipalities, the addendum is prepared in such a way that it is a standalone document that can be applied by non-UGDP/ETP municipalities.
The ESMF defines the steps, processes, and procedures for screening, assessment, monitoring and management of social and environmental issues related to the OBA project. In addition, the ESMF analyses environmental and social policies and legal regime of Nepal and safeguard policies of the World Bank as well as institutional and capacity assessment for environmental and social management. The ESMF is intended to be used as a practical tool during planning, design, implementation, and monitoring in the OBA project.
In order to identify, mitigate and manage adverse environmental and social impacts that are likely to arise from the activities of the project during implementation, ESMF is required to ensure that environmental and social issues are dealt with in a proper and efficient manner meeting all the compliance requirements of Government of Nepal (GoN) environmental regulations and policies, and the World Bank’s environmental and social safeguard policies.
The ESMF will be followed during project implementation for ensuring environmental and social integration in planning, implementation, and monitoring of project supported activities.
2Project description
This Chapter present a brief summary of the OBA project with focus on environmental and social issues. A detailed project description is provided in the Operations Manual for the OBA project.
2.1Project objectives
The development objective of the OBA project is to improve access to high quality and financially sustainable solid waste management (SWM) services in participating municipalities in Nepal.
2.2Project design
The OBA project is designed as a framework approach whereby all the key design principles (including eligibility criteria, institutional, financial, technical, fiduciary and safeguards) are agreed during project preparation and are subsequently applied during project implementation.
Basic environmental and social related eligibility criteria for participating in the project include:
›Municipalities must already have access to a landfill that is operational, and is considered environmentally acceptable within GoN’s environmental guidelines and standards;
›Municipalities must already have a basic functioning SWM system in place (collection and disposal) and an existing system for collecting solid waste charges from beneficiaries; and
›Municipalities must agree to prepare a SWM strategy and action plan, which must include a four year action plan to improve the quality and financial situation of SWM operations (hereinafter referred to as a Solid Waste Management Service Improvement Plan (SWM-SIP). The SWM-SIP must include an Environmental and Social Management Plan (ESMP) for all planned activities/interventions over the four year period.Activity with highly significant environmental and social risks, such as those requiring full Environmental Impact Assessment (EIA), is not-eligible for support under the OBA project.
The main central government counterparts for this pilot project are:
(i)The Town Development Fund (TDF) – a government-owned, semi autonomous municipal finance institution which will act as the Grant Fiduciary Agent; and
(ii)The Solid Waste Management Technical Support Centre (SWMTSC) within the Ministry of Urban Development (MUD). The SWMTSC is the lead technical agency for Nepal’s SWM sector and will assist in the technical aspects of the project.
2.3Project components
The project has three components:
(i)A service delivery subsidy to support gradual improvements in cost recovery in tandem with service quality improvements over a four-year period;
(ii)Implementation support to municipalities during project implementation; and
(iii)Project management, monitoring and verification activities.
Component 1 – Service delivery subsidy
This component will finance service delivery subsidies for each Participating Municipality, over a four (4) year period, to cover the gap between the operating and maintenance costs of delivering identified SWM service improvements and the Beneficiary Revenues collected through SWM fees, provided that the said services meet verified minimum performance criteria on the technical scorecard.Subsidies will be paid to municipalities based on agreed multiples of verified beneficiary revenue collected provided that services meet pre-agreed minimum performance criteria.
Component 2 – Implementation support to municipalities
This component will finance critical technical assistance to participating municipalities to assist them in successfully implementing the project, including preparation of service improvement plans; preparation of manuals and training in landfill operations and management; improvement of billing and revenue collection systems for solid waste management services; monitoring and evaluation and performance management systems for solid waste management services; design and implementation of integrated solid waste management activities based on 3R (reduce, reuse and recycle) principles; design and implementation of information, education and communication campaigns; and design of appropriate contractual arrangements in cases where a municipality chooses to contract with the private sector, non-governmental organizations or community-based organizations.
Component 3 – Project management, monitoring, evaluation and communications
This component will finance project management costs; consulting services for monitoring and verification of outputs and performance, baseline and beneficiary assessments, studies and other M&E activities, and communication and dissemination activities
2.4Participating municipalities
SWMTSC has facilitated a self-selection process based on the eligibility criteria, and five municipalities have come forward to form the initial pipeline. The pipeline includes two small municipalities (Tansen and Dhankuta), one medium-size municipality (Lekhnath) and two sub-metropolitan cities (Pokhara and Lalitpur). All five municipalities have provided written confirmation of interest to participate and commitment to the project’s principles. Feasibility studies have been conducted in two of the municipalities (Tansen and Dhankuta). The analysis in the rest of the municipalities is at Pre-FS level.
The OBA project requires municipalities to:
(i)Prepare a SWM strategy and action plan, which must include a four year action plan to improve the quality and financial situation of SWM operations (hereinafter referred to as a Solid Waste Management Service Improvement Plan (SWM-SIP). The SWM-SIP must identify those service delivery improvements to be covered under the OBA project;
(ii)Establish a SWM Committee and a dedicated SWM Unit;
(iii)Decide on the service delivery model –i.e. municipality’s own in-house team, contracting with private sector/non-governmental organizations (NGOs)/ “Tole Lane Organizations”(TLOs), or a combination of these;
(iv)Implement service delivery improvements as per agreed plans;
(v)Implement a designated SWM fee charged to all waste generators, and collect the revenues; and
(vi)Gradually increase the SWM fee charged as per agreed tariff profile during the project period.
The OBA is a framework project and is not limited to the above-mentioned five municipalities. Other eligible municipalities may have the opportunity to join the project later as per the Project Operations Manual.
2.5Proposed interventions under the OBA Project
Consistent with the OBA principle, the project allows municipalities the flexibility to make choices regarding the service delivery model and the combination of interventions required to achieve pre-agreed results in terms of improved quality of services and financial sustainability. Thus, the exact scope of interventions to be supported in each municipality is unknown at this stage. However, based on assessments and consultations carried during preparation of the OBA project, municipalities have identified a menu of critical interventions that would be required to achieve the results.
Key data for each municipality in the initial pipeline and the proposed OBA interventions is presented in Annex 1. A summary is provided in Table 2.1 below.
The types of interventions identified include (i) purchase of additional equipment, including waste collection vehicles such as tractors, trailers and compactors; waste collection bins, and home compositing bins etc; (ii) improvement of information and recording systems for solid waste operations; (iii) improvement of billing, revenue collection systems; (iv) improvement of waste collection and landfill management practices; (v) capacity building of municipality staff involved solid waste management; (vi) improvement of existing transfer stations and compositing facilities; and (vii) procurement of private operators/NGOs for primary waste collection (where a municipality chooses so) in selected wards under a clear contractual framework in which the performance incentives of the project are transferred to the private operator.
The project interventions do not involve construction of landfills or other waste facilities that require acquisition of private land or resettlements.
Table 2.1 - OBA interventions and investments in Initial Pipeline municipalities
Municipality / OBA intervention / Minimum investment needsDhankuta / Proposed service improvements under OBA intervention:
›Actual delivery of the present formal service level in the existing urban and peri-urban service areas
›Increase in service area to cover some of the presently un-serviced urban and peri-urban areas off the black top roads and possibly larger rural settlements close to the existing urban areas in Dhankuta and Hile
›Provision of a higher service level through:
›Kerbside collection along streets where the collection truck drives
›Offer home composting bins to households with own land (pilot)
›Three bin household separation in organic, inorganic and hazardous (pilot) and training households in waste separation
›Litter bins in market area / Procurement of:
›1 new tractor and trailer
›3,000 waste collection bins with lid
›100 bins for home composting pilot
›300 bins for three bin households collection pilot
›100 litter bins in market area
›Capacity building at municipality and TLOs
Tansen / Proposed service improvements under OBA intervention:
›Extending services into the non-serviced areas in wards 3, 9, 10, 11, 14 where households have stated interested and willingness to pay
›Piloting TLOs as customers in these areas to facilitate customer responsive service and high tariff collection ratio
›Increase coverage of the existing well- functioning blue bin system through purchase of 2-3,000 new bins
›Extend home composting pilot to reduce waste to landfill, but support with both training upon inception and monitoring during implementation / Procurement of:
›2,000 bins for kerbside collection
›200 bins for extension of the home composting pilot
›Capacity building at municipality and TLOs
Lalitpur Sub-Metropolitan City / Proposed service improvements under OBA intervention:
›Clear contractual framework for private operators combined with professional monitoring function in the municipality
›Higher level of door to door collection by private operators combined with waste minimization (waste segregation, composting and recycling) as well as awareness and training
›Gradual shift in municipal focus to ensuring efficient and environmentally acceptable transfer and disposal and monitoring of collection service providers / Procurement of:
›2-4 smaller waste collection vehicles per year to gradually replace tricycles and rickshaws
›Waste segregation bins and home composting bins for households
›Improvements to existing transfer station(s) and bulk transport to landfill.
›Private operators/NGOs for primary waste collection in selected wards under a clear contractual framework in which the performance incentives of the OBA project are transferred to the private operator.
Pokhara Sub-Metropolitan City / Proposed service improvements under OBA intervention:
›Build on experience from PPPUE and existing contracts for PSP when extending service area to 4,650 new households in To Pame Sarankot VDC, Nemta VDC, Lamachow VDC and Kanseri Arba VDC and increasing service level from weekly/biweekly service in Wards 13, 14, 16 and 18.
›Establish composting and separate collection for 12 MT/day vegetable market waste as PSP on public land
›Extend existing pilot on home composting by distribution of 500 bins per year
›Pilot on source segregation supported by awareness building
›Purchase around 8 new vehicles / Procurement of:
›8 new waste collection vehicles (compactors) gradually (e.g. 2 per year for 4 years) to supplement existing vehicles (which the municipality is also gradually replacing)
›Waste segregation bins and home composting bins for households
›Composting facility for market waste(on public land) under private sector management
›Private operators/NGOs for primary waste collection in selected wards under a clear contractual framework in which the performance incentives of the OBA project are transferred to the private operator.
Lekhnath / Proposed service improvements under OBA intervention:
›Developing a Solid Waste Management Plan
›Contracting and monitoring a private operator
›Waste collection services to 5,000 households, hotels and restaurants in first year and gradually growing thereafter
›Work with TLOs on household level source segregation and home composting
›Segregation and sale of recyclables prior to landfill of residuals / Necessary procurement to deliver this service improvement:
›Home composting bins
›Bins for household separation
›TA on managing Private Sector Participation in waste management
The service level and key environmental and social issues for waste collection, street sweeping and disposal is described for each municipality in Annex 1. The following overall environmental concerns and challengers for participation in the OBA project have been identified:
›Tansen municipality: A new landfill has not yet been taken into operation. The proposed improvements in service provision under the OBA intervention require the new landfill becoming operational, which in turn will require an upgrade of the remaining 3 km of the access road;
›Lalitpur Sub-Metropolitan City: The existing landfill has only limited remaining capacity and the long term landfill situation is unclear. Clarification of the landfill situation should be a precondition to the OBA intervention; and
›Lekhnath municipality: Although no waste collection or disposal services have been in operation in the municipality before, the municipality will initiate waste collection services from the new budget year 2012/13. The municipality plans to develop a landfill and a recycling center at the preferred site and has in cooperation with SWMTSC and local bodies identified and prioritized three landfill sites. The municipality has forwarded request for Initial Environmental Examination (IEE) through the SWMTSC. The SWMTSC is ready to commence the IEE procedure for the landfill site and other facilities. However, it is likely that the new landfill will not be operational for 3-5 years. Identification of an environmentally acceptable short term solution to disposal of residual waste prior to a possible Lekhnath landfill being operational should be a precondition to the OBA intervention. The solution may involve negotiating access to Pokhara’s landfill located less than 10 km away and paying a tipping fee. As part of this negotiation, the two municipalities may consider a capacity swap arrangement in which Lekhnath is allowed to deposit residual waste at Pokhara landfill until the Lekhnath landfill becomes operational and Pokhara subsequently allowed access to Lekhnath landfill for a similar amount of waste.