Section I – Basic Information
Date ISDS Prepared/Updated: February 1, 2005 Report No.:AC1231
A. Basic Project Data
A.1. Project Statistics
Country: India / Project ID: P083780
Project: Third Tamil Nadu Urban Development Project (TNUDP III) / TTL: Abha Joshi-Ghani
Total project cost (by component): Institutional Component: US$27 m, Urban Investment Component :US$629 m
Appraisal Date: February 14, 2005 / Loan/Credit amount($m):
IBRD: US$262m
Board Date: July 1, 2005
Other financing amounts by source: / US$73m (GoTN), US$240 (TNUDF-capital markets),US$70m, (Community contributions)
Managing Unit: SASEI / Sector: General water, sanitation and flood protection sector (65%);Roads and highways (25%);Sub-national government administration (10%)
Lending Instruments: Specific Investment Loan
Is this project processed under OP 8.50 (Emergency recovery? / Yes? / [ ] / No? / [x ]
Environmental Category: FI
A.2. Project Objectives
The proposed repeater project would build on and consolidate the achievements of TNUDP II, continuing to improve urban infrastructure services in Tamil Nadu in a sustainable manner. The two main objectives are:
· to strengthen the empowerment of ULBs by continuing the decentralization process through delegation of powers from state level bodies to ULBs; and through continuing and expanding the capacity building programs started under TNUDP II; and
· to mobilize resources on a sustainable basis for urban infrastructure investments through;
- mobilizing private financing for ULB infrastructure investments by linking ULBs to the financial markets through the intermediation of the Tamil Nadu Urban Development Fund (TNUDF);
- providing incentives for investments in low income neighborhoods through the use of supporting capital grants.
A.3. Project Description
The project comprises of two components (i) Institutional Development (ID) component and (ii) Urban Investment (UI) component.
A. Institutional Development Component: The institutional development component focuses on advancing the urban sector reforms in Tamil Nadu, building capacity of urban local bodies, improving managerial and financial performance of ULBs through performance benchmarking and monitoring.
B. Urban Investment Component: The urban investment component will aim at developing sustainable urban investments in water supply, waste water collection, solid waste management, storm water drains, roads and common facilities such as transportation networks, and sanitation facilities, based on investment plans or “City Visions” developed by ULBs. Primarily component includes investment support to TNUDF through a line of credit and provision of grant funds to finance environmental and social mitigation actions and the capital grant element of sub-projects serving the lowest income groups. However, in addition to the line of credit, project design would seek to expand TNUDF’s financial role to include credit enhancement support through other instruments—such as debt service reserve funds, partial guarantees, first loss guarantees, bond insurance and subordinated debt instruments which would assist the overall objective of providing sustainable access to the capital markets and commercial financing to ULBs.A.4. Project Location and salient physical characteristics relevant to the safeguard analysis:
Information on the exact locations of the subprojects to be financed under TNUDP III project is not known at this stage. However, these subprojects are expected to come up within the urban areas of Tamil Nadu.
B. Check Environmental Category A [], B [], C [ ], FI X]
Comments:
The subprojects to be financed under the project are likely to have varying levels of environmental impacts depending upon the location of subprojects, and scale and nature of activities envisaged in the subproject. Since the subprojects are restricted to urban areas, which have higher than normal population density, the environmental impacts associated with the subproject activities are expected to be significant warranting proper assessment and mitigation.
C. Safeguard Policies Triggered
Yes / No
Environmental Assessment (OP/BP/GP 4.01) / [X ] / [ ]
Natural Habitats (OP/BP 4.04) / [ X] ] 1 / []
Pest Management (OP 4.09) / [ ] / [X]
Cultural Property (draft OP 4.11 - OPN 11.03-) / [X ] 1 / []
Involuntary Resettlement (OP/BP 4.12) / [X ] / []
Indigenous Peoples (OD 4.20) / [ ] / [X]
Forests (OP/BP 4.36) / [ ] / [X]
Safety of Dams (OP/BP 4.37) / [ ] / [X]
Projects in Disputed Areas (OP/BP/GP 7.60)[*] / [ ] / [X]
Projects on International Waterways (OP/BP/GP 7.50) / [ ] / [X]
1 Applicability of these safeguard policies will be determined at a subproject level through screening and assessment tools provided in the Environment and Resettlement Framework. If applicable, suitable mitigation plans in compliance with local laws and regulation will be developed as part of subproject preparation.
Section II – Key Safeguard Issues and Their Management
D. Summary of Key Safeguard Issues.D.1. Describe any safeguard issues and impacts associated with the proposed project. Identify and describe any potential large scale, significant and/or irreversible impacts.
Social:
Under the previous project TNUDP-II, TNUDF had incorporated the suggestions made by the Bank to address issues related to social safeguard requirements of ESR in the context of OD 4.30 on Involuntary Resettlement. Since social safeguard requirements of the Bank are currently based on OP 4.12 and BP 4.12, TNUDF would update its ESR by replacing its existing Appendix 5 –‘ Social Impact and Entitlement Framework for World Bank Financed Projects’ - with a view to meet the Bank's current requirements. TNUDF would also strengthen its social safeguards framework by including the field tested formats for social screening, classification of categories, reporting and monitoring. Social safeguards in the proposed TNUDP III would relate to continued lending by TNUDF to Urban Local Bodies (ULBs), up-gradation of services in low income areas and certain investments which are likely to emerge out ULB investment plans to be financed by TNUDF.
Environment:
The Project will directly contribute to the improvement of environmental conditions in urban areas by providing basic infrastructure, including solid-waste and sanitation facilities, storm drainage and water supply facilities. Nevertheless, some of the subproject types to be financed under the project are expected to have adverse environmental implications/issues requiring careful assessment and mitigation. As the issues/impacts are subproject specific, a framework approach is being adopted to screen and mitigate the impacts at subproject level.
D.2 Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area.
The project area is very wide since Tamil Nadu is one of the most urbanized states in India, and virtually spreads across the entire state of Tamil Nadu although confined to urban areas. Future activities in such urban areas especially the towns and cities are expected to result in both positive and negative impacts. One of the significant negative impacts is expected to be the land use change in the long term.
D.3. Describe the treatment of alternatives (if relevant): NA
D.4. Describe measures taken by the borrower to address safeguard issues. Provide an assessment of borrower capacity to plan and implement the measures described.
The framework approach used in the previous TNUDP projects will continue to be used to identify and mitigate the potential negative environmental impacts of such sub-projects under TNUDP III As part of the preparation for TNUDP III, a comprehensive review of the existing environmental framework (titled Environmental and Social Report) has been undertaken to identify the gaps/concerns/inadequacies and opportunities for enhancing the effectiveness of the framework. The updated framework to be renamed as Environmental & Resettlement Framework (ERF) would have the following critical enhancements.
· Reflecting the regulatory changes related to environment in the context of the project and changes/updates in applicable Bank policies/guidelines.
· Strengthening the framework including formats for monitoring and reporting progress of EMP implementation.
· Strengthening institutional and implementation framework including contractual obligations between the borrower (such as municipalities) and the civil contractors.
· Strengthening the policy framework to include environmental enhancement as part of environment management at sub project levels.
Based upon the potential magnitude of environmental impacts involved, sub-projects would be classified into three categories (E1 major impact, E2 moderate impact, and E3 no impact) and appropriate mitigation and enhancement actions will be included in sub-project design. Assessment and studies will be undertaken to prepare subproject specific EA/EMPs for E1 projects. Each subproject, which is classified as E1 will be approved by the Bank during the sub-loan appraisal stage.
To strengthen the institutional capacity, and to improve environmental management in TNUDP III, TNUIFSL will recruit an environment and resettlement manager (ERM) with the dedicated responsibility of overseeing the environment management process in TNUDP III. Suitable training and capacity building initiatives will be designed and implemented to ensure effective implementation of the ERF.
D.5. 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, the ULBs, line departments in the State Government responsible for providing different services in the urban areas, local NGOs, the people to be directly affected by subprojects and the urban population in general who are expected to benefit from the subprojects to be implemented as part of the project. The Environment and Resettlement Framework (ERF) developed for the project has necessary provisions to ensure consultation and participation at subproject level to address the safeguard issues. The Framework document will be posted at TNUDF’s website and will be accessible to all stakeholders at key locations with summaries in the local language (Tamil).
F. Disclosure Requirements Date
Environmental Assessment/Audit/Management Plan/Other:
Date of receipt by the Bank 02/02/05
Date of “in-country” disclosure 02/04/05 (to be confirmed)
Date of submission to InfoShop 02/04/05 (to be confirmed)
For category A projects, date of distributing the Executive Summary of the EA to the Executive Directors Not Applicable
Resettlement Action Plan/Framework/Policy Process:
Date of receipt by the Bank …/…/… or Not Applicable
Date of “in-country” disclosure …/…/… or Not Applicable
Date of submission to InfoShop …/…/… or Not Applicable
Indigenous Peoples Development Plan/Framework:
Date of receipt by the Bank …/…/… or Not Applicable
Date of “in-country” disclosure …/…/… or Not Applicable
Date of submission to InfoShop …/…/… or Not Applicable
Pest Management Plan:
Date of receipt by the Bank Not Applicable
Date of “in-country” disclosure Not Applicable
Date of submission to InfoShop Not Applicable
Dam Safety Management Plan:
Date of receipt by the Bank Not Applicable
Date of “in-country” disclosure Not Applicable
Date of submission to InfoShop Not Applicable
If in-country disclosure of any of the above documents is not expected, please explain why.
Section III – Compliance Monitoring Indicators at the Corporate Level
(To be filled in when the ISDS is finalized by the project decision meeting)
OP/BP 4.01 - Environment Assessment: / Yes / No
Does the project require a stand-alone EA (including EMP) report? / X
If yes, then did the Regional Environment Unit review and approve the EA report? / X
Are the cost and the accountabilities for the EMP incorporated in the credit/loan? / X
OP/BP 4.04 - Natural Habitats: / Yes / No
Would the project result in any significant conversion or degradation of critical natural habitats? / X
If the project would result in significant conversion or degradation of other (non-critical) natural habitats, does the project include mitigation measures acceptable to the Bank?
Applicability of this safeguard policy will be determined at a subproject level and if the need be suitable mitigation plan will be developed as part of subproject preparation in compliance with local laws and regulations.
OP 4.09 - Pest Management: Not Applicable / Yes / No
Does the EA adequately address the pest management issues?
Is a separate PMP required?
If yes, are PMP requirements included in project design?
Draft OP 4.11 (OPN 11.03) - Cultural Property: / Yes / No
Does the EA include adequate measures? / X
Does the credit/loan incorporate mechanisms to mitigate the potential adverse impacts on physical cultural resources?
Applicability of this safeguard policy will be determined at a subproject level as far as possible cultural property is avoided and if e need ,e suitable mitigation plan will be developed as part of subproject preparation in compliance with local laws and regulations.
OD 4.20 - Indigenous Peoples: Not Applicable / Yes / No
Has a separate indigenous people development plan been prepared in consultation with the Indigenous People?
If yes, then did the Regional Social Development Unit review and approve the plan?
If the whole project is designed to benefit IP, has the design been reviewed and approved by the Regional Social Development Unit?
OP/BP 4.12 - Involuntary Resettlement: / Yes / No
Has a resettlement action plan, policy framework or policy process been prepared? / X
If yes, then did the Regional Social Development Unit review and approve the plan / policy framework / policy process?
It is possible that some economic displacement or resettlement may happen under some of the sub-projects. The ESR covers such occurrence.
OP/BP 4.36 – Forests: Not Applicable / Yes / No
Has the sector-wide analysis of policy and institutional issues and constraints been carried out? / X
Does the project design include satisfactory measures to overcome these constraints?
Does the project finance commercial harvesting, and if so, does it include provisions for certification system?
OP/BP 4.37 - Safety of Dams: Not Applicable / Yes / No
Have dam safety plans been prepared? / X
Have the TORs as well as composition for the independent Panel of Experts (POE) been reviewed and approved by the Bank?
Has an Emergency Preparedness Plan (EPP) been prepared and arrangements been made for public awareness and training?
OP 7.50 - Projects on International Waterways: Not Applicable / Yes / No
Have the other riparians been notified of the project? / X
If the project falls under one of the exceptions to the notification requirement, then has this been cleared with the Legal Department, and the memo to the RVP prepared and sent?
What are the reasons for the exception?
Please explain:
Has the RVP approved such an exception?
OP 7.60 - Projects in Disputed Areas: Not Applicable / Yes / No
Has the memo conveying all pertinent information on the international aspects of the project, including the procedures to be followed, and the recommendations for dealing with the issue, been prepared, cleared with the Legal Department and sent to the RVP?
Does the PAD/MOP include the standard disclaimer referred to in the OP?
BP 17.50 - Public Disclosure: / Yes / No
Have relevant safeguard policies documents been sent to the World Bank's Infoshop? / YES
Have relevant documents been disclosed in-country in a public place in a form and language that are understandable and accessible to project-affected groups and local NGOs? / YES
All Safeguard Policies: / Yes / No
Have satisfactory calendar, budget and clear institutional responsibilities been prepared for the implementation of the safeguard measures? / YES
Have safeguard measures costs been included in project cost? / YES
Will the safeguard measures costs be funded as part of project implementation? / YES
Does the Monitoring and Evaluation system of the project include the monitoring of safeguard impacts and measures? / YES
Have satisfactory implementation arrangements been agreed with the borrower and the same been adequately reflected in the project legal documents? / YES
Signed and submitted by: / Name / Date
Task Team Leader: / Abha Joshi-Ghani
Project Safeguards Specialist 1: / Samuel Thangaraj
Project Safeguards Specialist 2: / Kirtan C Sahoo / 02/01/05
Project Safeguards Specialist 3:
Approved by: / Name / Date
Regional Safeguards Coordinator: / Fredrick Brusberg
Comments:
Sector Manager: / Sonia Hammam
Comments:
[*] By supporting the proposed project, the Bank does not intend to prejudice the final determination of the parties' claims on the disputed areas