PART 2 – Section A SOCIAL AND ENVIRONMENTAL …...Karnataka Municipal Reforms Project – SEMF Samaj Vikas ([email protected]) 1 Introduction Project background Government of Karnataka

Karnataka Urban Infrastructure Development Finance Corporation Karnataka Municipal Reforms Project – SEMF

Samaj Vikas ([email protected]) i

PART 2 – Section A

SOCIAL AND ENVIRONMENTAL MANAGEMENT FRAMEWORK (SEMF)

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Table of Contents

1 Introduction ......................................................................................................1

1.1 Project background.............................................................................................1

1.2 About KUIDFC..................................................................................................1

1.3 Objectives of KMRP ..........................................................................................2

1.4 Project components ............................................................................................2 A. Institutional Development & TA Component (Reforms) ..................................2 B. Investment Support Component (Investment) ...................................................2 C. Bangalore Development Component (Investment)............................................3 D. Project Management Support (Reforms)............................................................3

1.5 Size of investment ..............................................................................................4

1.6 Implementation arrangements ............................................................................4

1.7 Basis for the Social and Environment Management Framework (SEMF).........5

1.8 Purpose of the SEMF .........................................................................................6

1.9 Composition of the SEMF .................................................................................6

2 Social and Environmental Policies..................................................................8

2.1 Context ...............................................................................................................8

2.2 Social Policy.......................................................................................................8

2.3 Environmental Policy.......................................................................................10

2.4 Other Enabling Factors.....................................................................................10

3 Legal requirements ........................................................................................12

3.1 General .............................................................................................................12

3.2 Social................................................................................................................12 3.2.1 Land Appropriation ......................................................................................12 3.2.2 Wages...........................................................................................................12 3.2.3 Child Labour ................................................................................................12 3.2.4 Differently Abled .........................................................................................13 3.2.5 SCs and STs .................................................................................................13

3.3 Environmental ..................................................................................................13 3.3.1 Water Pollution & Water Cess Acts & Rules ..............................................13 3.3.2 Air Pollution Act & Rules............................................................................13 3.3.3 Environment (Protection) Act / Rules..........................................................14 3.3.4 Noise.............................................................................................................14 3.3.5 Coastal zones................................................................................................14 3.3.6 Legal requirements of stone crushing units..................................................14

4 Categorization of sub-projects ......................................................................15

4.1 Background ......................................................................................................15

4.2 Water sector sub-projects .................................................................................16

4.3 Sewage & Sanitation sector sub-projects .........................................................16

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4.4 Solid waste management sector .......................................................................17

4.5 Urban transport sector ......................................................................................17

4.6 Other sectors.....................................................................................................18 4.6.1 Lighting and Signage ...................................................................................18 4.6.2 Commercial Civic Amenities .......................................................................19 4.6.3 Public Civic Amenities.................................................................................19 4.6.4 Urban Planning and Development ...............................................................20

5 Social Impacts and Mitigation ......................................................................22

5.1 Introduction ......................................................................................................22

6 Environmental Impacts and Mitigation Measures .....................................23

6.1 Introduction ......................................................................................................23

6.2 Incorporating mitigation measures in EMP .....................................................23 6.2.1 Category Ea sub-projects .............................................................................23 6.2.2 Category Eb sub-projects .............................................................................23 6.2.3 Category Ec sub-projects .............................................................................23

6.3 Incorporating the EMP in the contract documents...........................................23

7 Sub-project cycle and social & environmental requirements ....................24

7.1 General .............................................................................................................24

7.2 Identification ....................................................................................................24

7.3 Screening and categorization ...........................................................................25

7.4 Preparation .......................................................................................................25

7.5 Appraisal ..........................................................................................................26

7.6 Approval...........................................................................................................26

7.7 Loan Sanction and Disbursement.....................................................................27

7.8 Implementation.................................................................................................27

7.9 Operation & Maintenance ................................................................................27

7.10 Monitoring and Reporting................................................................................27 7.10.1 Arrangements ...............................................................................................27 7.10.2 Monitoring Reports ......................................................................................28 7.10.3 External audits..............................................................................................28

8 Public / stakeholder consultations and disclosure.......................................30

8.1 Introduction ......................................................................................................30

8.2 Consultations in preparing the SEMF ..............................................................30

8.3 Consultations and Stakeholder Involvement....................................................31 8.3.1 In preparation of CIP....................................................................................31 8.3.2 During sub-project implementation .............................................................31

8.4 Disclosure.........................................................................................................32 8.4.1 State level .....................................................................................................32 8.4.2 District level .................................................................................................32

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8.4.3 Grievance Redressal Mechanism .................................................................32

9 Organizational Roles and Responsibilities...................................................33

9.1 Introduction ......................................................................................................33

9.2 KUIDFC...........................................................................................................34 9.2.1 General .........................................................................................................34 9.2.2 Role in KMRP..............................................................................................35 9.2.3 Staff positions for KMRP.............................................................................35

9.3 BMP .................................................................................................................35

9.4 Panel of Consultants.........................................................................................36

9.5 DUDC...............................................................................................................36

9.6 ULBs ................................................................................................................37

9.7 Panel of Advisors .............................................................................................37

10 Capacity-Building & Training ......................................................................39

10.1 Background ......................................................................................................39

10.2 Objectives.........................................................................................................39

10.3 Approach ..........................................................................................................39 10.3.1 Diagnostics Phase.........................................................................................39 10.3.2 Intervention Phase........................................................................................40 10.3.3 Institutionalization Phase .............................................................................40

10.4 Training Needs Assessment .............................................................................40

10.5 Training Design and Delivery ..........................................................................40

10.6 Workshops and Seminars for Learning Experiences .......................................41

10.7 Support Structure of Advisory Panels and Consultants ...................................41

10.8 Policy Studies for Future Strategies .................................................................42

10.9 Programmes to be conducted ...........................................................................43

10.10 Suggested Broad Based Programmes...........................................................43

10.11 Methodology and Timeframe.......................................................................45

11 Budgetary Requirements...............................................................................46

11.1 General .............................................................................................................46

11.2 Manpower resources ........................................................................................46

11.3 Capacity-building .............................................................................................46

11.4 External Support...............................................................................................47

11.5 Sub-project costs ..............................................................................................47

11.6 Studies ..............................................................................................................47 11.6.1 EAs and SA / RAP preparation....................................................................47 11.6.2 Comprehensive review of SEMF during mid-term......................................47 11.6.3 Special ..........................................................................................................47

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12 Updation / Maintenance of SEMF................................................................48

12.1 Need & nature of the updation .........................................................................48

12.2 New legal requirements & updation.................................................................48

12.3 Comprehensive SEMF review .........................................................................48

13 Annexures .......................................................................................................49

13.1 R & R Policy ....................................................................................................49 13.1.1 Introduction ..................................................................................................49 13.1.2 Type of Sub-Projects and Impacts ...............................................................49 13.1.3 Categorization ..............................................................................................50 13.1.4 Overarching Principles.................................................................................51 13.1.5 Definitions....................................................................................................52 13.1.6 Community Participation .............................................................................54 13.1.7 RAP Preparation and Approval Process.......................................................54 13.1.8 Land Appropriation - Compensation Valuation...........................................55 13.1.9 Entitlement Framework................................................................................57 13.1.10 Institutional Arrangements.......................................................................59 13.1.11 Grievance Redressal.................................................................................61 13.1.12 Monitoring................................................................................................61 13.1.13 Budgets.....................................................................................................62 13.1.14 Amendment ..............................................................................................62

13.2 ToR for the external audit of selected sub-projects..........................................63

13.3 ToR for the SEMF review................................................................................63


Samaj Vikas ([email protected]) 1

Introduction Project background

Government of Karnataka (GoK) has set out to implement many reforms programmes in the state. Prominent among these are the efforts of the Urban Development Department (UDD) through Karnataka Urban Infrastructure Development and Finance Corporation (KUIDFC) in providing urban infrastructure and initiating municipal reforms. The UDD presently has many externally aided projects under implementation and is initiating the process of preparing the Karnataka Municipal Reforms Project (KMRP) with financial assistance from the World Bank (WB). Deficiency in urban infrastructure provision due to lack of financial resources and technical capacity and huge unmet urban public health and sanitation needs are the primary drivers for the initiation of the KMRP. Implementing 74th Constitutional Amendment in true letter and spirit is the context in which the KMRP is being undertaken. However, municipal financial capacity and municipal effort towards resource mobilization will drive towards investment under various project components.

About KUIDFC

The primary borrower would be the UDD, GoK through Government of India. The UDD, GoK would be implementing KMRP through KUIDFC.

KUIDFC was incorporated under the Companies Act, 1956 (No. 1 of 1956) and the company is a Limited Corporation. KUIDFC was set up in the year 1993 with a 100% share holding by the GoK. The state is one of the rapidly urbanizing states in India - an estimated one-third of the population of the state lives in urban areas. The infrastructure facilities in the towns and the cities have not kept in pace with the urban growth. KUIDFC aims to bridge this gap. KUIDFC’s objectives include the following:

• Project formulation and appraisal of urban infrastructure development projects.

• Providing financial and technical assistance to municipalities / development agencies.

• Mobilization of funds from different sources - Government and Financial Institutions (internal and external institutions like Housing and Urban Development Corporation (HUDCO), Asian Development Bank (ADB), World Bank (WB), etc.) for infrastructure development projects.

• Project Monitoring and implementation. • Capacity Building / Training to enable efficient implementation of urban

development projects.



Objectives of KMRP

The vision of the project is to improve the level, quality and sustainability of basic urban services in selected Urban Local Bodies (ULBs), contributing to improved quality of life among the urban poor.

The objective of the proposed project is to support state urban reforms and improve city management and municipal services.

The following are the overall objectives of the KMRP.

(a) at the state level, foster the decentralization process through improved governance and oversight of local governments; (b) at the municipal level, enhance the accountability and financial soundness of the Urban Local Bodies (ULB) of Karnataka, and c) improve service delivery to the urban population. The following are the specific objectives of the KMRP: • Enhance accountability, transparency and promote good governance • Make ULBs need sensitive, demand responsive and self-reliant • Improve service delivery by way of advancing the process of

decentralization and management at both state and local level • Combine state level policy support and local action plans • Promote institutional reforms capacity building measure and performance

based investments • Explore and promote ways for public private partnerships • Enhance community awareness and participation Project components

The project components are grouped under four categories – two reforms (A and D) and two investment components (B and C):

A. Institutional Development & TA Component (Reforms)This component consists of the following Technical Assistance (TA) studies.

• A1. Computerization of Municipal function • A2. TA to Town Planning Department • A3. Implementation of new Accounting systems in ULBs • A4. Project Development Advisory Facility • A5. Capacity Building of ULBs including BMP • A6. IEC and costs of experts to advice to KUIDFC and State Departments B. Investment Support Component (Investment)B1. General Urban Investment Component: The sub-projects in this category include: • Water Supply (improvements) • Transportation



• Street Lighting • Lakes and Water Bodies Development • Commercial Civic Amenities • Common Civic Amenities B2. Public Health Investment Support : The sub-projects in this category include: • Storm Water Drainage • Sewerage and Sewage Treatment Plants • Municipal Solid Waste Management • Low Cost Sanitation • Public Conveniences C. Bangalore Development Component (Investment)C1. Capacity Building Support C2. Investment Support: This include the following: • Roads (improvements) • Grade Separators • Footpaths • Storm Water Drainage D. Project Management Support (Reforms)

The project investments to be performance based and demand driven. However, KUIDFC assumes the responsibility of financing all ULBs (committing to implement reforms) for tackling public health related sanitation investments. The first batch of ULBs selected for investments consists 17 ULBs and Bangalore.

The list of first batch of 17 ULBs is as follows:

Hassan Chitradurga Chikkamagalur Bhadravathi Doddaballapur Chintamani

Shimoga Kolar Chikkaballapur Robertsonpet Chittapur Tiptur

Athni Savanoor Sakeleshpur Madikeri Sringeri



Size of investment

The likely size of investment and nature of funding is given in the following table:

Component Likely Size in US$ Million

Nature

A. Institutional Development and TA Component

100% Grant

A1. Computerization of Municipal Function

7.21

A2. TA to Town Planning Department 2.60 A3. Implementation of new accounting systems in ULBs

2.79

A4. Capacity Building /Training of ULBs 8.3 A5. Technical Assistance to UDD 4.31

Sub-Total 25.22 B. Investment Support Component B1. General Urban Infrastructure Support 40.0 70% Loan, 30% Grant B2. Public Health Investment Support 40.0 10% Loan, 90% Grant

Sub-Total 80.0 C. Bangalore Development Component C1. Capacity Building Support 3 100% Grant C2. Investment Component 28 70% Loan, 30% Grant C3. GBWASP 69 70% Loan, 30% Grant

Sub-Total 100.0 D. Project Management Support 8.6 100% Grant

Sub-Total 8.6 Total Baseline Cost 214 * To be amended as per approval by GoK

A substantial portion of the project outlays are shown as grants. However, the grants would not undermine the implementation of reform agenda. The total amount of grants to ULBs will be performance based and commitment driven, as the ULBs have to achieve pre-determined levels of reforms implementation.

The ULBs, which do not have the loan bearing capacity of 10% under the public health and sanitation improvement component, will be assisted in developing a revenue enhancement plan to enable repayment. In case of failure to repay, GoK will deduct the same from their State Finance Commission (SFC) devolutions.

Implementation arrangements

ULBs will be primarily responsible for implementation of sub-projects. Technical and project management assistance will be provided to ULBs from District Urban Development Cells (DUDCs), Karnataka Urban Water Supply and Drainage Board (KUWS&DB) (for water and sewerage sub-projects) and a panel of consultants. KUIDFC will be the financial intermediary obtaining a



loan from the WB for financing the sub-projects proposed by ULBs. The loan proceeds for the sub-projects will directly be remitted to the ULB accounts.

The implementation of A1 (Computerization of Municipal Function) component would be through DMA. The implementation of component A2 (TA to Town Planning Department) would be through Department of Town Planning (DTP). The BMP sub-projects will be implemented by BMP.

The procurement of services will be centrally managed by the KUIDFC for administrative efficiency.

The safeguards issues are taken care of by having a Social and Environmental Management Framework. During the project preparation stage the ULBs and the CIP consultants would use the Borrowers Guidebook to address the safeguards issues.

Basis for the Social and Environment Management Framework (SEMF)

The SEMF was based on the outputs of the Social and Environmental assessment that was carried out during the project preparation. The assessment included secondary information research, primary visits to 17 ULBs, public / stakeholder consultations, description of the baseline conditions and analysis to determine the key social and environmental issues. All the information, analysis and feedback have been suitably incorporated in the SEMF.

The requirements of national, state and local legislative requirements were considered in preparing the SEMF. The WB safeguard policies were also considered and incorporated as required. The ten safeguard policies included the following:

1. OP 4.01, Environment Assessment 2. OP 4.04, Natural Habitats 3. OD 4.10, Indigenous peoples 4. OP 4.12, Involuntary resettlement 5. OP 4.36, Forestry 6. OP 4.09, Pest Management 7. OPN 11.03, Cultural Property 8. OP 4.37, Safety of Dams 9. OP 7.50, Projects on International Waterways 10. OP 7.60, Projects in Disputed Areas Of these policies, only two would be applicable.

OP 4.01 would be applicable for sub-projects, which need to be assessed whether or not they are environmentally sensitive, and some of these sub-projects are likely to have diverse and significant environmental impacts.

OD 4.10 is applicable if there are tribals in the area.



OP 4.12 would be applicable if there is involuntary resettlement and rehabilitation due to the sub-project design and implementation requirements. The SEMF includes the necessary processes to identify and address the requirements of these policies. Though it is very unlikely that OPN 11.03 (Cultural Property) be triggered, the ULBs should take due note of this during sub-project preparation to cover any chance finds. Hence, during preparation the ULBs and preparation consultants should investigate and inventories all cultural resources that may be potentially affected and should include mitigation measures when there are adverse impacts on physical cultural resources. In this process appropriate agencies, local NGOs, and relevant university departments are to be consulted.

In addition, the SEMF drew from a similar frameworks adopted in the design and implementation experiences of other projects such as Tamil Nadu Urban Development Project-II (ongoing implementation under WB funding) and proposed Gujarat Urban Development Project (prepared but not implemented) and management plans of other projects in the various sub-sectors within the urban sector.

Purpose of the SEMF

The main purpose of the SEMF is to facilitate the management of environment and social issues of investment sub-projects to be funded under KMRP. At the time of project preparation, the different sub-sectors within the urban sector were identified. But the specific sub-projects, i.e. the size, type and location, were not identified. Therefore, it was not possible to develop specific management plans. Considering that the sub-project identification was to be demand-driven, it was felt that it would be best to have a SEMF that would be used by KUIDFC to develop sub-project specific plans as and when required.

By having a SEMF, KUIDFC is also implementing an international good practice for financial institutions - managing social & environment issues of sub-projects using an explicit management framework.

The secondary purpose of the SEMF is to provide information and analytical support on social and environmental issues that are relevant to the municipal reform process. This is to be done through studies and other initiatives.

Composition of the SEMF

The SEMF (described in this document) has the following sections:

• Introduction • Social and Environmental Policies • Legal requirements • Social impacts and mitigation • Environmental impacts and mitigation • Categorization of sub-projects



• Sub-project cycle and social & environmental impacts • Approaches to stakeholder / public consultations • Capacity-building & training • Budgetary support. • Updation / maintenance of the SEMF The SEMF has a companion volume “Borrower’s Guidebook,” which gives information that is directly relevant to be borrowers (ULBs) and their consultants. There is information in the Borrower’s Guidebook that is required for the SEMF. In order to avoid repetition, the cross-reference to the Borrower’s Guidebook has been provided instead of repeating such information in the SEMF.



Social and Environmental Policies Context

The USP (unique selling proposition) of KUIDFC is “Working Towards A Better Urban Living”.

The GoK through the UDD has mandated the KUIDFC to finance and develop urban infrastructure projects in Karnataka. KUIDFC, which has set out to implement the KMRP, aims to promote environmentally sound and sustainable, socially acceptable and economically viable urban infrastructure projects. KUIDFC believes that each of the sub-projects of the KMRP will improve the living standards and the environment of populations of the participating ULBs and areas around these ULBs. In line with this policy, KUIDFC is committed to identify, prepare and implement socially acceptable, environmentally sound and sustainable and financially sustainable sub-projects. Further, these sub-projects would be implemented with the continuous technological improvement, financial prudence and managerial prowess that are inherent strengths of KUIDFC.

KUIDFC commits to social and environmental policies in this context. In developing these policies, the existing KUIDFC policies – the urban policy and the water policy – have also been referred prior to developing these social and environment policies.

Social Policy

The Social policy aims at addressing the following social issues:

Land Appropriation: Often private Land Appropriation becomes unavoidable when implementing development projects. This deprives the people of the land to which they are attached to. The project emphasis is to minimize this and to properly compensate people who lost their lands.

Displacement: Often people are displaced when their homestead land acquired or land is acquired in bulk for implementation of development projects. This development induced displacement causes hardship to people in relocating and resettling. The project emphasis is to minimize this and to properly resettle people who are displaced.

Loss of Livelihoods: This is a result of Land Appropriation and/or displacement. People who lose their livelihoods have to face hardship in rehabilitating themselves. The project emphasis is to minimize this hardship and properly rehabilitate people who lost their livelihoods.

Top-Down Approach: This approach results in people not owning the products of development interventions and maintaining them. The project emphasis is on using a Bottom-Up Approach through a process of people participation.



Exclusion: Often the vulnerables viz. disadvantaged section, SCs/STs, women, differently abled, etc. are sidelined or taken for granted in the design and implementation of development projects. This alienates them from project interventions and denies access to them to the services. The project emphasis is to provide them opportunities and access through a process of inclusion.

Hazards: Ill-conceived development projects pose health and safety hazards to people. The project emphasis is to address and incorporate health and safety provision in the project design and implementation.

This Social Policy is based on gaining Social Acceptability, Significance, Relevance and Adequacy for each of the sub-projects. This is achieved by commitment to the following Pancha Sutras:

Resettlement: Avoiding or minimizing Resettlement due to Land Appropriation through appropriate technical and management measures. Wherever resettlement is triggered by Land Appropriation and where possible obtaining the agreement of the concerned stakeholders to give their land voluntarily on consent basis, and/or by considering alternatives. The endeavour would be on avoiding Land Appropriation and resettlement.

Rehabilitation: Where resettlement is unavoidable, ensuring proper and responsible resettlement and rehabilitation of Project Affected Persons through sustainable livelihood options that at least restore, if not improve, their standard of living. Ensuring resettlement and rehabilitation plans are prepared and implemented in a timely manner and that those to be resettled are aware of their entitlements and of the grievance mechanisms open to them should they seek redress. The endeavour would be to improve the living standards of the project affected persons.

Participation: Addressing stakeholders legitimate concerns while paying special attention to project affected persons. Providing opportunities and avenues for informed stakeholder consultation, and, where appropriate, their participation in decision-making in project preparation, implementation and evaluation, in order to foster greater ownership and sustainability. The endeavour would be to involve all stakeholders in the complete project life cycle. This endeavour is extended to all community development activities of the project involving all categories of stakeholders. In fact, the process of participation for all community development activities starts from the planning stage itself.

Inclusion: Protecting the marginalized, socially and economically disadvantaged, women, children and other vulnerable groups. Promoting and providing, wherever possible, opportunities for such groups to take advantage of the investments. The endeavour would be to address equity, gender and inclusion issues in the project design itself. Gender issues will be addressed through women empowerment in all the project activities. This



protection to the marginalised involves poverty alleviation programmes to the Below Poverty Line families.

Health and Safety: Minimizing health and safety hazards and providing opportunities for enhancing public and environmental health. The endeavour would be to improve the public and environmental health and safety of the populations in and around the participating ULBs.

This social policy includes an R&R policy that incorporates measures to mitigate adverse R&R impacts.

Environmental Policy

KUIDFC is committed to environmentally sustainable urban development. KUIDFC would ensure effective management of environmental issues in its activities with a special focus on the following:

• Ensuring that its sub-projects adhere to the national, state and local legal requirements during the design and implementation stages.

• Ensuring that best environmental practices are mainstreamed / integrated with the sub-project design and implementation wherever practicable.

• Striving to enhance environmental conditions in the urban context wherever feasible.

• Undertaking capacity building and training initiatives for its stakeholders such as the ULBs, DUDCs and consultants.

• Maintaining the Social and Environmental Management Framework (SEMF) as a means to ensure the effective implementation of this policy.

Other Enabling Factors

The above are achieved through Technological Perfection, Financial Prudence and Managerial Prowess of the KUIDFC.

Technological Perfection by

• Using State of the art technology appropriate to the location • Adopting well established standards and codes of practices • Enhancing technical capabilities of ULB • Promoting best practices in O&M and management of assets • Making optimal use of Information Technology Financial Prudence by

• Ensuring sustainability of investments • Investing in commercially viable projects • Working towards increasing creditworthiness of ULBs • Aiming at functional financial independence of ULBs

Managerial Prowess by



• Standing out as a Centre of excellence • Decentralising decision making process • Introducing highest quality standards and best practices KUIDFC expects that most of the sub-projects of the KMRP would be small and medium urban infrastructure projects. It is possible that limited resources available for mitigating social and environmental issues arising within projects could affect their economic viability. Therefore, mitigation measures to deal with environmental and social issues such as best practices available would be encouraged. Further, KUIDFC would endeavour to continually seek alternate mechanisms and routes to operationalize the social and environmental policy. While adopting this social and environmental policy for the KMRP, KUIDFC has reflected it commitment through mechanisms illustrated in this report.



Legal requirements1

General

There are national, state and local legal requirements that are applicable to some sub-projects that would be proposed under KMRP. In this chapter, a list of legal requirements for each sub-sector has been provided. As the applicability of these legal requirements would depend on the nature of the sub-projects, the exact applicability cannot be determined at this stage. KUIDFC would provide the list of legal requirements to the ULBs and their design consultants, and indicate that compliance to these requirements is mandatory. KUIDFC would also verify whether the sub-projects are in compliance with these legal requirements prior to granting approval of funds. During implementation, KUIDFC would ensure that the supervision consultants monitor compliance to legal requirements on an ongoing basis and report the same periodically.

Social

The following legal and constitutional provisions with amendments would apply in the implementation of the social policy for KMRP. Land AppropriationThese are the laws applicable when Land Appropriation becomes necessary for KMRP sub-projects implementation. 1. Land Acquisition Act 1894 2. The Land Acquisition (Amendment and Validation) Act, 1967 3. The Land Acquisition (Amendment) Act, 1984 WagesThe below are applicable for the welfare of the labour that would work in the KMRP sub-projects. 1. Minimum Wages Act, 1948 2. Contract Labour Act, 1970 3. The Bonded Labour System (Abolition) Act, 1976 Child LabourThe following are applicable for prevention of child labour in implementation of KMRP. 1. Child labour (Prohibition and Regulation) Act 1996 along with Rules, 1988 2. Children (Pledging of labour) Act, 1933 (as amended in 2002)

1 These requirements are as of February 2004.



Differently AbledThe following acts and rules are applicable in the identification and provision of support during implementation of KMRP sub-projects. 1. The Persons with Disabilities (Equal Opportunities, Protection of Rights

and Full Participation) Act, 1995 2. The Persons with Disabilities (Equal Opportunities, Protection of Rights

and Full Participation) Rules, 1996 SCs and STsIn case of SCs and STs the following acts and rules would apply for KMRP. 1. The Scheduled Castes and the Scheduled Tribes (Prevention of Atrocities)

Act, 1989 2. The Scheduled Castes and the Scheduled Tribes (Prevention of Atrocities)

Rules, 1995 3. Untouchability Offences Act, 1955

Environmental

Water Pollution & Water Cess Acts & RulesThere are legal requirements related to water use and water pollution. On water use, the following legal requirements are applicable:

1. Water (Prevention and Control of Pollution) Cess Act, 1977 [Central] 2. Water (Prevention and Control of Pollution) Cess Rules, 1977 [Central] Related to water pollution, the following legal requirements are applicable:

3. Water ((Prevention and Control of Pollution) Act, 1974 [Central] 4. Water (Prevention and Control of Pollution) Rules, 1975 [Central] 5. Central Board for the Prevention and Control of Water Pollution

(Procedure for Transaction of Business) Rules, 1975. [Central] 6. Karnataka State Board for the Prevention and Control of Water Pollution

(Procedure for Transaction of Business) Rules, 1976. [State] 7. Karnataka Water Prevention and Control of Pollution (Appellate

Authority) Rules, 1976 [State] 8. Notifications under Water (Prevention and Control of Pollution) Act, 1974.

[Central] Air Pollution Act & RulesThe following central and state legal requirements are related to air pollution:

9. Air (Prevention and Control of Pollution) Act, 1981 [Central] 10. Air (Prevention and Control of Pollution) Act, 1982 [Central] 11. Karnataka (Prevention and Control of Pollution) Rules, 1983 amended in

1987, 1991, 1994, 1998 and 2002. [State]



These would be applicable in sub-projects that have air emissions. For instance, the construction of urban roads would require hot mix or concrete plants.

Environment (Protection) Act / RulesThe Environment (Protection) Act / Rules is an umbrella act that covers different aspects. The following are the legal requirements that may have applicable to the sub-projects of KMRP:

12. Karnataka Town and Country Planning Act 1961 13. Karnataka Municipalities Act 1964 14. Karnataka Municipal Corporation Act 1976 15. Environment (Protection) Act, 1986 [Central] 16. Environment (Protection) Rules, 1986 [Central] 17. Environmental Standards for Ambient Air, Automobiles, Fuels, Industries

and Noise-approved and Notified by GoI. [Central] 18. Hazardous Wastes (Management and Handling) Rules, 1989 [Central] 19. Municipal Solid Wastes (Management and Handling) Rules, 1999 (& 2000)

[Central] 20. Noise Pollution (Regulation and Control) Rules, 2000 [Central] Noise Though noise pollution is covered under the Noise Pollution (Regulation and Control) Rules 2000 of the Environment (Protection) Act, the state has additionally issued another legal requirement: Prevention and control of noise pollution in the state, G.O. No. FEE 465 ENV 2000, Bangalore, dated 13-8-2002.

Coastal zonesThere are certain location-based legal requirements. These govern all activities or sub-projects pertaining to particular locations. Pertaining to coastal zones, the following legal requirements are applicable:

21. Coastal Regulation Zone (CRZ) under Environment (Protection) Act, 1986 [Central]

22. Amendments to Coastal Regulations Zone (dated 21-5-2002). [Central] Legal requirements of stone crushing unitsIn relation to specific activities, there are legal requirements. Laying of roads would require aggregate material that would have to be sourced from stone crushing units. These units are required to ensure that the following legal requirement is met: Policy guidelines for siting, air pollution control measures and standards for stone crushing units in Karnataka state, Office Memorandum No. FEE 13 EAA 99(P), Bangalore, dated 19th November, 2001. Karnataka Gazette, dated 7-2-2002. [State]



Categorization of sub-projects Background

Categorization is required to carry out the appropriate level of assessments for different types of sub-projects based on the nature, scale and magnitude of their social and environmental impacts. Categorization would help in focusing time and effort in sub-projects that have significant impacts. The social and environmental categorization of sub-projects is proposed to be as under:

• Social o Sa: More than 200 Project Affected Persons (PAPs) (for

definition please refer to R&R Policy) o Sb: Between 1 and 200 PAPs o Sc: No PAPs

The Sa category sub-projects requires the preparation and submission of a Social Assessment (SA) / Resettlement Action Plan (RAP) along with the Detailed Project Report (DPR) for appraisal by KUIDFC. The Sb category sub-projects need not conduct and prepare SA / RAP, but need to include the Social Management Plan (SMP) into the DPR for appraisal by KUIDFC. Under special circumstances, a limited social assessment might be necessary. The Sc category projects, normally, need not prepare any SA / RAP or include the SMP.

• Environmental o Ea: Significant adverse environmental impacts o Eb: Moderate adverse environmental impacts o Ec: Minimal or no adverse environmental impacts

The Ea category sub-projects require conducting and preparation of Environmental Impact Assessment (EIA) / Environment Management Plan (EMP) as the project may have diverse and significant environmental impacts. The Eb category sub-projects require an EMP, which is to be prepared using the Guidance 3 given in the Borrower’s Guidebook. This EMP becomes a part of the DPR, which is appraised by KUIDFC. The Ec category sub-projects do not require preparation of any EIA or EMP, as these sub-projects have minimal or no environmental impacts.



Water sector sub-projects

These works involve barrages, impounding storage reservoirs, jack wells, pumping machinery, pumping rooms, rising and/ or gravity mains, water treatment plants, distribution system, ground level and overhead reservoirs, repairs and improvements to existing facilities. Most of these works would be concentrated in one location except for the pipelines, which are buried below ground. The requirement of land for these works is rather small. Hence, these sub-projects are classified as Sb and Sc categories. There would not be any permanent negative environmental impacts due to these sub-projects. The construction of barrages and impounding storage reservoirs could have some moderate effect on the groundwater and drainage patters. These could be minimized with proper hydrological and geological investigations. Hence, these sub-projects are all classified as Eb and Ec categories. Sector/ Sub-Project Social Environmental1. Water 1A. Head Works/ Intake works 1A1. Head works/ Intake works not involving river diversions/ impounding storages/ barrages

Sc Ec

1A2. Head works/ Intake works involving river diversions/ impounding storage/ barrages

Sa Eb

1B. Water Treatment Plants Sb Eb 1C. Rising Mains/ Gravity Mains Sc Ec 1D. Overhead/ Ground level Reservoirs Sb Ec 1E. Feeder Mains/ Distribution Mains Sc Ec 1F. Extension of Services to Vulnerable Sections Sc Ec 1G. Water Tankers Sc Ec

Sewage & Sanitation sector sub-projects

These works involve sewer network, pumping machinery, pumping stations, rising and/ or gravity mains, sewage treatment plants, repairs and improvements to existing facilities, etc. Most of these works would be concentrated in one location except for the pipelines, which are buried below ground. The requirement of land for these works is rather small. Hence, these sub-projects are classified as Sc and Sb categories. New Storm Water Drainage systems and Under Ground Sewerage systems could displace people (encroachers or squatters) living on the road edges. This could trigger resettlement issues. Hence, these projects are categorized as Sa. There would not be any permanent negative environmental impacts due to these sub-projects. The construction of pumping stations and sewage treatment plants could have some effect on the groundwater. These could be



minimized with proper hydrological and geological investigations. There might be smell emanating from these facilities. The disposal of waste from the treatment plants has to be taken care of. Hence, these sub-projects are classified as Ec, Eb and Ea categories. Sector/ Sub-Project Social Environmental 2. Sewage/ Drainage/ Sanitation 2A. Sewage Treatment Plants Sb Ea 2B. Public Conveniences Sc Ec 2C. Storm Water Drainage 2C1.Improving Existing SWD Sc Ec 2C2. New SWD Sa Eb 2D. Under Ground Sewerage 2D1. Improvements to Existing UGS Sc Ec 2D2. New UGS Sa Ea 2E. Sewage Pumping Stations Sb Eb

Solid waste management sector

These works involve dumping yards, composting yards, landfills, vehicles for transportation of solid waste, etc. Most of these works would be concentrated in one location except for the vehicles, which would be moving around the ULB for collection of waste. The requirement of land for works is moderate, requiring about 5 to 10 Hectares. If land is acquired in a residential locality, there is the possibility of coming across squatters or encroachers. Generally, the land acquired is agricultural land away from habitations. Hence, these sub-projects are classified as Sc and Sb categories. There would not be major permanent negative environmental impacts due to these sub-projects, as the sub-projects would not much interfere with other systems. The digging of landfill pits for composting the solid waste could have effect on the groundwater. This could be minimized with proper hydrological and geological investigations. These facilities should be located away from the drinking water sources. Smell from the site is another issue. Hence, these sub-projects are all classified as Ea and Ec categories. Sector/ Sub-Project Social Environmental3. Solid Waste Management 3A. Primary Collection of Solid Waste Sc Eb 3B. Dumping/ Composting Yards/ Land Fills Sb Ea 3C. Transportation of Solid Waste (Vehicles) Sc Eb

Urban transport sector



These works involve road resurfacing, widening, foot paths, traffic islands, dividers, traffic signs, new roads, ring roads, bridges, culverts, RuBs, pedestrian crossings, RoBs, bus terminals, truck terminals, car parkings, workshops, etc. Most of the road works would be linear, except for the bridges, bus terminals, etc. This means removal of obstructions, demolition of structures, and Land Appropriation along the road, if it is widened or a new road. The requirement of land for these works is dependent on the nature of work. Hence, these sub-projects are classified as Sc, Sb and Sa categories. There would not be any permanent negative environmental impacts due to these sub-projects. The construction of new roads, RuBs, culverts, pedestrian sub-ways, etc. would have some effect on the groundwater and drainage patters. These could be minimized with proper hydrological and geological investigations. Most of the impacts under this category are during the construction phase, where the general public would be subjected to noise, dust and smell. Hence, these sub-projects are all classified as Ec, Eb and Ea categories. Sector/ Sub-Project Social Environmental4. Transportation 4A. Road Widening and Resurfacing Sb Eb 4B. Road Resurfacing without Widening Sc Ec 4C. New Roads/ Ring Roads Sa Ea 4D. Foot Paths Sc Ec 4E. Traffic Islands Sc Ec 4F. Dividers Sc Ec 4G. Bus Terminals Sb Ec 4H. Truck Terminals Sb Ec 4I. Car Parkings Sb Ec 4J. Workshops Sb Eb 4K. Bridges/ Culvers Sb Eb 4L. RuBs/ Pedestrian Subways Sb Ea 4M. RoBs Sb Eb 4N. Traffic Signals Sc Ec

Other sectors

Lighting and Signage

These works involve putting streetlights and sign boards. The requirement of land for works is rather nil and there would not be any rehabilitation of people. Hence, these sub-projects are classified as Sc category. There would not be any permanent or temporary negative environmental impacts due to these sub-projects. Hence, these sub-projects are all classified as Ec category.



Sector/ Sub-Project Social Environmental5. Lighting and Signage 5A. Street Lighting Sc Ec 5B. Sign Boards Sc Ec

Commercial Civic Amenities

These works involve shopping and office complexes, cinema theatres, dormitories, lodges, hostels, marriage halls, community halls, slaughter houses, vegetable, fish and meat markets, etc. Most of these works would be concentrated in one location. The requirement of land for works is moderate, say about 1 to 2 Hectares. These facilities need to be built with in the commercial area of the ULB. Hence, there would be some displacement. Hence, these sub-projects are classified as Sb category. There would not be any permanent negative environmental impacts due to these sub-projects. There might be some temporary impact like dust, noise, etc. during the construction. The handling of liquid and solid waste emanate from these facilities need to be handled properly to avoid temporary and permanent environmental impacts. These impacts could be minimized with proper wastewater, sewage, solid waste handling arrangements. Hence, these projects are all classified as Eb category. Sector/ Sub-Project Social Environmental6. Commercial Civic Amenities 6A. Shopping/ Office Complexes Sb Eb 6B. Cinema Theatres Sb Eb 6C. Dormitories/ Hostels/ Lodges Sb Eb 6D. Marriage Halls Sb Eb 6E. Community Halls Sb Eb 6F. Slaughter Houses Sb Ea 6G. Vegetable/ Fish/ Meat Markets Sb Eb

Public Civic Amenities

These works involve parks, lakes and water bodies improvement, playgrounds, schools, libraries, shelters for the homeless and the aged, disaster relief centres, hospitals, burial grounds, crematorium, etc. Most of these works would be concentrated in one location. The requirement of land for these works is moderate ranging from 1 to 5 Hectares. These facilities need to be located close to the ULB as these are frequently used by the citizens. Hence, there might be some displacement of people. Hence, these sub-projects are classified as Sc and Sb categories.



There would not be any permanent negative environmental impacts due to these sub-projects. The construction of parks, playgrounds, schools, libraries, shelters, etc. would only have temporary impacts during construction; like noise, dust, etc. The hospitals would generate bio-medical waste and burial grounds would have impact on the groundwater. These could be minimized with proper hydrological and geological investigations. There might be smell emanating from these facilities. The disposal of waste from these facilities needs to be taken care of. Hence, these projects are all classified as Ec, Eb and Ea categories. Sector/ Sub-Project Social Environmental7. Public Civic Amenities 7A. Parks Sb Ec 7B. Lakes/ Water bodies Improvements Sc Ec 7C. Playgrounds Sb Eb 7D. Schools/ Libraries Sb Ec 7E. Shelters for Homeless/ Old age Homes Sb Eb 7F. Disaster Relief Centres Sb Eb 7G. Hospitals Sb Ea 7H. Burial Grounds and Crematoriums Sb Ea

Urban Planning and Development

These works involve development of sites and services for housing colonies, housing schemes (construction of houses) and land development for residential, commercial, industrial, etc. use. These works would be concentrated in one location. The requirement of land for works is rather high (in an urban sense) requiring 5 to 50 hectares. There is the possibility of displacement, rehabilitation and resettlement too. Hence, these sub-projects are classified as Sa category. There would not be any permanent negative environmental impacts due to these sub-projects. The construction of roads as part of sites and services, house construction for housing schemes would have temporary impacts due to the construction activity. These impacts could be taken care of by following the standards in the contract documents. However, the location of these facilities could trigger off some negative impacts such as ecological issues, hydrological changes, cutting of trees, etc. Hence, these projects are all classified as Ea category. Sector/ Sub-Project Social Environmental 8. Urban Planning and Development 8A. Housing Colonies (only sites and services) Sa Ea 8B. Housing Schemes Sa Ea 8C. Land Development Sa Ea



The classification, for all sectors, given above is indicative; this should be confirmed on the ground when a sub-project proposal is made to KUIDFC. Irrespective of the classification given above, a facility planned in forest land or coastal zone gets into category Ea.



Social Impacts and Mitigation Introduction

The sub-projects to be proposed under the KMRP investment programme aim at improving the living standards of the citizens in the ULBs. Most of these sub-projects would be improvement/ augmentation/ extension to the existing assets and systems. These investments would improve the performance of the existing assets and systems. The financial and physical size of the sub-projects would be small. This makes the significance of the social impacts, if any, to be low. The proposed R&R policy would address these impacts. The 17 first batch of ULBs (and Bangalore) are all over Karnataka. Apart from Bangalore, among these 17 ULBs, 12 ULBs cover two distinct regions in south Karnataka; Hasan and Chikmagalur region (7 ULBs) and Kolar region (5 ULBs). Among the remaining, 3 are scattered in north Karnataka and 1 is in south Karnataka. Populations of these towns are a mix of different religions, castes and socio-economic statuses. At this stage, it is not possible to identify as to how many and who will be affected by which sub-project. The individual sub-projects proposals will mention the number and categories of the population likely to be affected. Hence, an R&R Policy is prepared for the following reasons. (Annex 13.1) • The sub-projects are yet to be proposed • Inclusion of new ULBs • Time lag between sub-project identification and implementation KUIDFC will screen all the sub-projects prior to approval to ensure their consistency with the R&R Policy given in the Annex 13.1. As per the categorization of the projects, if the number of PAPs exceeds 200, then KUIDFC would ask the ULB to prepare a RAP before project appraisal and for other projects, it will ensure that the project proposals include measures to mitigate adverse impacts as per the R&R policy.



Environmental Impacts and Mitigation Measures Introduction

As a part of the environmental assessment, secondary research on the environmental impacts in the urban sector was undertaken. Field visits to 17 ULBs were also carried out to determine the nature, scale and magnitude of these environmental impacts. The environmental impacts were analyzed vis-à-vis the various sub-projects in each of the urban sub-sectors of water, solid waste, sanitation, transport and others. The sub-project categorization as Ea or Eb or Ec was done on the basis of this analysis. This has been included in Chapter 4. After identifying the impacts, the mitigation measures were also determined. These have been included in a table in Guidance No. 3 of the Borrower’s Guidebook. These have not been included here to avoid repetition. The table also includes information on whether these mitigation measures have to be undertaken in the planning / design, construction and operation phases.

Incorporating mitigation measures in EMP

Category Ea sub-projectsFor Category Ea sub-projects, a social and environmental consultant – separate from the design consultants – has to be engaged to carry out and prepare the EIA & EMP reports. KUIDFC would prepare a specific ToR for the environmental consultants for EIA of this category of projects. KUIDFC would share the table of impacts and mitigation measures with the environmental consultants as information that they could use in their assessment. Given that a full-fledged environmental assessment is to be carried out, the table would only provide an indicative list for the consultants, which they can use in their analysis.

Category Eb sub-projectsFor Category Eb sub-projects, the design consultants would have to prepare the EMP. KUIDFC would share the table of impacts and mitigation measures with the design consultants for them to use in the preparation of the EMP that needs to be submitted along with the DPR.

Category Ec sub-projectsAs the environmental impacts are minimal, no mitigation measures need to be implemented.

Incorporating the EMP in the contract documents

KUIDFC would ensure that the EMP is a part of the contract documents in the case of Ea and Eb sub-projects.



Sub-project cycle and social & environmental requirements General

Typically, a sub-project cycle would include the following phases:

• Identification • Screening and Categorization • Preparation • Appraisal and Approval • Loan sanction and disbursement • Implementation • Operation & Maintenance • Monitoring & Evaluation

This section elaborates the sub-project cycle and how social and environmental requirements at the different phases.

Identification

Within the identification, the different steps are as follows:

• ULB approaches KUIDFC expressing interest in using KMRP funds for sub-projects.

• KUIDFC informs ULB of the need to obtain a Council Resolution • After the Council Resolution, KUIDFC verifies whether ULB meets the

access criteria specified for KMRP funds and then a MoU is signed between KUIDFC and ULB. This MoU includes a Revenue Enhancement Plan (REP).

• If ULB meets the access criteria, KUIDFC appoints a consultant to undertake the initial financial assessment to determine whether the financial capacity exists.

• Once the financial capacity requirements are ascertained, KUIDFC assesses whether the ULB requires funds from GUI Support and / or PHI Support.

PHI Support • If the sub-project(s) is / are to be funded under the PHI Support, then the

identification is completed. GUI Support • If the sub-project is to be funded under the GUI Support, then KUIDFC

engages a consultant to prepare a Capital Investment Plan (CIP). • KUIDFC ensures that the ToR for preparing the CIP includes the social

and environmental screening component. [Guidance No. 8 of the Guidebook]



• As an output of the CIP, the consultant prepares a wish list and a further short-list of sub-projects. In developing the wish list and short-list, the consultant takes into account social and environmental screening. This short-list would also contain the consultant’s recommendation of sub-project categorization. [Guidance No. 8 of the Guidebook]

• KUIDFC reviews the ULB’s sub-project list and identifies whether it fits into the eligibility criteria established for each sub-sector (water, sanitation, solid waste, and others)

• If one or more sub-projects are selected, the sub-project identification is completed.

Screening and categorization

Screening and categorization – Sa/Sb/Sc for social and Ea/Eb/Ec for environment - for sub-projects under PHI Support and GUI Support are done with a slight difference.

• In sub-projects being considered for PHI Support, KUIDFC carries out the categorization in line with the SEMF.

• In sub-projects being considered for GUI Support, KUIDFC verifies whether the consultant’s categorization has been done in line with the SEMF. If it is not, then KUIDFC would review this categorization with ULB and Consultants and modifies the category given when necessary.

KUIDFC carries out the categorization and verification in line with Chapter 6 of the SEMF. [Ref.: Guidance No. 2 of the Guidebook.]

Preparation

Within the identification, the different steps are as follows. There is no difference in the steps whether the sub-project is to be funded under PHI Support or GUI Support.

General• KUIDFC engages a consultant to design the sub-project, i.e. to prepare the

DPR. Social and Environmental• If it is category Sa and/or Ea, then KUIDFC identifies a consultant –

separate from the design consultant – to carry out a Social and/ or Environmental Assessment and prepare a RAP/ EIA and EMP in line with the Terms of Reference (ToR). [Ref.: Guidance No.s 5, 6 and 7 of the Guidebook]

• If it is category Sb and/ or Eb, then KUIDFC provides the relevant guidance material to the design consultant in order to develop a RAP/ EMP as a part of the Detailed Project Report (DPR). [Ref: Guidance No. 5 and 7 of the Guidebook gives the structure and format.]



• If it is category Sc and/ or Ec, then there are no further social and environmental requirements to be met by the design consultants /ULB.

Appraisal

As a part of the appraisal, KUIDFC determines the appropriate technical authority within the state government for obtaining approval / clearance of the DPR. At the same time, the social and environmental sections of the DPR are appraised in the following manner: Social part• For category Sc, there are no social requirements to be appraised. • For category Sb, the KUIDFC verifies the RAP prepared by the design

consultants. KUIDFC ensures that the RAP covers the main issues and concerns. In particular, KUIDFC would ensure that the legal requirements are met.

• For category Sa, the KUIDFC verifies the SA & RAP prepared by the consultants (separate from the design consultant). KUIDFC ensures that the SA & RAP cover the main issues and concerns. In particular, KUIDFC would ensure that the legal requirements are met. KUIDFC would undertake site visits, if necessary.

Environment part• For category Ec, there are no environmental requirements to be appraised. • For category Eb, the KUIDFC verifies the EMP prepared by the design

consultants. KUIDFC ensures that the EMP covers the main issues and concerns. In particular, KUIDFC would ensure that the legal requirements are met.

• For category Ea, the KUIDFC verifies the EA & EMP prepared by the consultants (separate from the design consultant). KUIDFC ensures that the EA & EMP cover the main issues and concerns. In particular, KUIDFC would ensure that the legal requirements are met and the EMP is an integral part of the Contract (BoQ, specifications and drawings) documents. KUIDFC would undertake site visits, if necessary.

General• If KUIDFC finds that the submissions by the consultants are inadequate,

then these are sent back to the consultants for improvement. These reports are improved till they are regarded as acceptable by KUIDFC.

Approval

The approval of the sub-projects is to be done by the KUIDFC board or the Empowered Committee as appropriate.

Category Sc or Ec

• There are no social or environmental requirements for these sub-projects. Category Sb or Eb



• Social and Environment Management Unit (SEMU) for KMRP in KUIDFC prepares a SEMF conformance note. This note would be sent along with the other sub-project documentation that is sent to the KUIDFC Board for approval.

Category Sa or Ea

• Prior to sending the sub-projects for KUIDFC Board approval, KUIDFC would send the social and environment documentation to the World Bank for review & approval. If these reports need to be improved, then KUIDFC would arrange with the design consultants for their improvement and re-send the same to the WB for review & approval.

• KUIDFC would obtain the approval / clearance for Category Sa projects from the WB’s Social team and approval / clearance for Category Ea from the WB’s Environment team. Once these approvals are obtained, SEMU prepares a SEMF conformance note that would include the WB’s approval. This note would be sent along with the other sub-project documentation that is sent to the KUIDFC Board for approval

General• On the basis of the sub-project documentation submitted (including the

SEMF conformance note), the KUIDFC would approve the sub-project.

Loan Sanction and Disbursement

After the sub-project is approved, the loan agreements would be signed between the ULB and KUIDFC. In these loan agreements, KUIDFC would ensure that complying with the RAP or EMP as the case may be – depending on the categorization – are explicitly included in the loan agreement.

Implementation

The ULB shall be primarily responsible for the implementation of the sub-projects, which would generally be done through contractors. These works would be implemented as per the contract documents signed between the ULB and the contractor.

Operation & Maintenance

Operation & maintenance is the responsibility of the concerned ULBs. As a part of the EMPs, the measures required during the operation would be specified. ULBs would follow them.

Monitoring and Reporting

ArrangementsTo assist the ULB with the monitoring, KUIDFC would engage sub-project supervision consultants.



KUIDFC would ensure that there is a full-time social officer for Sa projects and a full-time environmental engineer for Ea sub-projects in the supervision consultants’ team. Their activities would be in line with the ToRs provided [Ref: Guidance No. 9 of the Guidebook]. KUIDFC would ensure that these ToRs are included at the time of procuring these supervision consultants.

In certain types of sub-projects, the ULB itself would be the Engineer without any supervision consultants. But if the sub-project is either Category Sa or Ea, then KUIDFC would ensure that the ULB has the services of supervision consultants for monitoring.

Monitoring Reports

The supervision consultants would be submitting periodic monitoring reports (monthly or quarterly) to the ULB, which would be forwarded to KUIDFC. These reports would also cover social and environmental aspects that are in line with the SMP/RAP and EMP respectively.

KUIDFC would compile and submit to the WB quarterly progress reports. These reports would also include a separate social and environmental section.

External auditsKUIDFC would arrange external sub-project focused audits – to be done by an external consultants / audit agency - on an annual basis. These audits would assess how effectively social and environmental issues are addressed in sub-project design and implementation. The SMPs/RAPs and EMPs would be the basis of these audits. The auditing of the Sa and Ea category sub-projects would be done by the supervision consultants. KUIDFC would ensure that 25% of Sb and Eb category sub-projects under implementation or operation would be audited. The remaining Sb and Eb sub-projects would be audited through compliance reports.

ToR for the external audit is included in Annexure 0. For category Sa and Ea projects, the ToR for supervision consultants should include audit.

The super vision consultants / audit agency would submit an external audit report. KUIDFC would ensure that the findings from these audits are adequately addressed. After KUIDFC has addressed these audit findings, the consultants / audit agency would verify compliance and prepare an audit compliance report.

KUIDFC would submit the external audit report and a summary on how these issues have been addressed to the WB.



Sub-project Social and Environmental Life Cycle

Sub-Project Phase Key Roles (Social and Environmental)

Identification • ULB identifies sub-projects with RWAs and CBOs

• City Development Plans (Micro and Macro) to be the basis

Screening and Categorization (Social and Environmental)

• For PHI: KUIDFC

• For GUI: CIP consultant does and KUIDFC with ULB verifies

Preparation • Design Consultants for all categories

• For Sa and Ea category: Separate Social and Environmental Consultant for SA/ SMP and EIA/ EMP preparation

Appraisal • KUIDFC through verification and site visits

Approval • KUIDFC

• For Sa and Ea category WB review prior to approval

Monitoring • ULB (must have Social and Environmental capacity)

• For Sa and Ea category: supervision consultants (must have a social officer and environmental engineer on board)

Audit • For Sa and Ea category: supervision consultants

• For Sb and Eb: audit consultants for a sample of 25%



Public / stakeholder consultations and disclosure Introduction

The project has a separate consultation and communication strategy, which also covers consultation related to social and environmental issues. This chapter reiterates elements of the strategy that is relevant to social and environmental issues in general and the SEMF in particular. This chapter also outlines the disclosure of documents done and planned under the project.

Consultations in preparing the SEMF

As a part of the preparation, a social and environmental assessment was done. This focused on the 17 ULBs that were identified for investments in the first phase. In each of these ULBs, public / stakeholder consultations were organized. The information gathered during these consultations was incorporated in the social and environmental assessment, and in the SEMF as appropriate. The details of the field visits and consultation are given below.

Field visits Consultation Town

From To Date All ULBs 01-12-2003 10-12-2003 Reconnaissance Visits Bangalore 01-12-2003 11-12-2003 Shimoga 29-12-2003 31-12-2003 17-01-2004 Chitradurga 01-01-2004 03-01-2004 16-01-2004 Savanoor 04-01-2004 06-01-2004 30-01-2004 Kolar 01-01-2004 03-01-2004 29-01-2004 Robertsonpet 04-01-2004 06-01-2004 31-01-2004 Chintamani 07-01-2004 09-01-2004 16-01-2004 Chickaballapur 10-01-2004 12-01-2004 28-01-2004 Doddaballapur 13-01-2004 15-01-2004 23-01-2004 Chickkamagalur 16-01-2004 17-01-2004 21-01-2004 Chitradurga 01-01-2004 03-01-2004 16-01-2004 Sringeri 13-01-2004 15-01-2004 19-01-2004 Madikeri 18-01-2004 19-01-2004 24-01-2004 Chittapur 07-01-2004 09-01-2004 08-01-2004 Athni 10-01-2004 12-01-2004 10-01-2004 Hassan 12-12-2003 18-12-2003 22-01-2004 Sakleshpur 19-12-2003 21-12-2003 21-01-2004 Tiptur 22-12-2003 24-12-2003 20-01-2004 Bhadravati 25-28-2003 28-12-2003 03-02-2004

KUIDFC along with Samaj Vikas support team has conducted regular Internal consultations within KUIDFC to review and finalize the SEMF.

KUIDFC conducted a Consultation Workshop for all the 17 first batch ULBs that was held in Bangalore on 04 February 2004, wherein the participants



were briefed about the project and their suggestions were collected for considering incorporation into project strategy / preparation.

KUIDFC has conducted several other workshops during the last quarter where the experiences gained during the implementation of externally aided projects, in particular the ADB assisted, were discussed and disseminated. These lessons learnt were taken into account in the design and preparation of KMRP.

Consultations and Stakeholder Involvement

In preparation of CIPKUIDFC would engage consultants to assist the ULBs prepare the CIP. In the ToR for the CIP, there is an explicit requirement for the consultants to carry out public / stakeholder consultations. This is a mechanism to ensure the upfront public / stakeholder inputs in the preparation of the CIP.

For Category Ea and Sa sub-projectsWherever sub-projects are classified as Category Sa and Ea, KUIDFC would have to engage consultants to prepare the SA / RAP and EIA / EMP respectively. In the ToR for the preparation of these outputs, public / stakeholder consultations forms an integral part.

For sub-projects in other categoriesThere are no explicit requirements for public / stakeholder consultations for sub-projects in the other categories. But the consultations done during the preparation of the CIP and as a part of the overall strategy would be sufficient for these type of sub-projects.

During sub-project implementationDuring sub-project implementation RWAs, NGOs, CBOs will be involved. At the ULB level the DUDC will coordinate the formation of a committee involving all these agencies. DUDC would head this committee. The project monitoring reports would be disseminated in the public consultation meetings in the ULBs. The user groups formed under the CAP sub-component under the PHI Support will be the main focus of these meetings. The stakeholder meetings would discuss the sub-project progress reports and make recommendations for sub-project control and modifications. These recommendations would be made use for future sub-project design. The panel of advisors at district level would be a form of public consultation as all the sub-projects activities during all stages would be discussed during



the meetings with them. The suggestions would be used for sub-project control and future sub-project design. Disclosure

State level

KUIDFC has disclosed the following documents: (i) Social and Environmental Assessment, (ii) SEMF, (iii) Borrower’s guidebook, (iv) Consultation and communications strategy (v) Capacity-building plan and (vi) Grievance Redressal Mechanism in its website, www.kuidfc.com.

KUIDFC has also disclosed its R&R policy and the entitlement framework. Though this is a part of the SEMF, these documents have been separately identified and disclosed in the company’s website. These two documents have also been translated in Kannada and has been made available at the KUIDFC’s Bangalore office.

District levelKUIDFC has also arranged to disclose the final versions of the SEMF and the Borrower’s guidebook in all DUDCs and the District Information Centres. These would be in place once the final versions are ready. When this document is updated, then the copies in the different locations would also be updated.

Grievance Redressal MechanismKMRP will have a grievance redressal mechanism which will look into all aspects of sub-projects and their activities apart from R&R related grievances. The R&R policy can be referred for details on Grievance Redressal Mechanism.



Organizational Roles and Responsibilities Introduction

KUIDFC as the financing agency of KMRP envisages to try out and establish an institutional model that would be used for all the projects funded by it in future. The proposed model has been built on the following overarching principles.

• Empowerment: Strengthen the ULBs by empowering them by putting the 73rd and 74th amendments to practice. All the implementation functions and related powers and responsibilities would be delegated to the ULBs.

• City Development Plans: Make planning an essential function of ULBs by advocating them to prepare the city/town development plans.

• Support and Technical Assistance: Make UDD/DMA an essential part of the implementation by routing the implementation of reforms and community participation (in particular the Solid Waste Management) through them. Make use of the newly setup DUDCs and strengthen them and build a long lasting relationship between ULBs and DUDCs for sustainability.

• Private sector Capacity: Build private capacity for municipal infrastructure through panel of advisors at the ULBs level for sustainability. Make use of local expertise by outsourcing the capacity requirement at ULBs level.

• Focused Role: More focused role for KUIDFC as financing and monitoring agency. This would enable the KUIDFC to increase it’s financing activities to more ULBs and for a variety of activities.

• Capacity Building: Build capacity at various levels. Build monitoring capacity at KUIDFC. Augment KUIDFC capacity through Advisory Committee. Build implementation capacity at District level through DUDCs. Build ULB capacity through panel of advisors.

The roles and responsibilities of various organisations involved in KMRP are detailed elsewhere, viz. the Project Implementation Plan and Project Operations Manual. However the roles and responsibilities, that are related to social and environmental aspects, are listed below: Level Organization Role State KUIDFC Appraisal and approval of sub-projects and

variations Financing and monitoring Forwarding Grievances Procurement of services of consultants Procurement of Centralized Goods and Works (with ULB agreement)

Empowered Committee Review and appraise sub-Projects Approval of sub-projects and variations



UDD, DMA & DTP Assistance in obtaining necessary government approvals and orders for implementation of project Implementation, supervision and progress monitoring of reforms consolidation activities Implementation, supervision and progress monitoring of town planning activities Implementation, supervision and progress monitoring of all Community Awareness and Participation activities

BMP Implementation, Supervision and Progress Monitoring of sub-projects at BMP level

KUWS&DB Advise and implementation assistance on water and sewerage projects

Panel of Consultants Consultancies required of KMRP at state and district level and in BMP

District Level

DUDC Technical Assistance to ULBs in the concerned districts

Deputy Commissioner Land Appropriation Grievance Redressal

Project Management Consultants

Project Preparation Supervision Quality Control

KUWS&DB Technical Assistance for implementation of water and sewerage sub-projects

ULB Implementation Panel of Advisors Advise to DUDCs and ULBs on sub-project

preparation and implementation

KUIDFC

General

KUIDFC is an urban infrastructure funding and developing agency. However, its roles and responsibilities are much broader than that of a traditional financial intermediary, both in terms of breadth and depth. KUDIFC acts as an apex level financial enabling institution for all urban infrastructure implementing agencies in Karnataka. In this process, it discharges its funding role as well as guiding and leadership role for institutionalization of social and environmental concerns. The key roles and responsibilities of KUDIFC, therefore, can be grouped under the following heads.

• Capital Accessibility • Screening and approving sub-projects • Loan Disbursement and Contractual Documentation • Monitoring, Evaluation and Follow-up



Role in KMRP

Essentially KUIDFC would be doing Financing and Monitoring of sub-projects proposed under KMRP. KUIDFC would disburse eligible sub-project loan installments periodically to ULBs; eligible when the sub-project loan contract conditions, which include social and environmental clauses and covenants, are fully complied to the satisfaction of KUIDFC and its financier. This also includes complying of contract conditions of the sub-project contracts and overall satisfactory performance. In this process, KUIDFC appoints and pays the Consultants for project management, monitoring, etc.

KUIDFC would approve sub-projects proposed under KMRP and would monitor the sub-project loan agreements and contracts for compliance with the SEMF among other issues. KUIDFC would have designated position occupied by capable persons with assigned responsibilities for Operations, Finance, Social and Environmental, Urban Reforms, etc. to perform the monitoring function.

Staff positions for KMRP

KUIDFC would have the following positions to screen, appraise, approve, manage and monitor sub-projects under KMRP.

• Project Manager (overall in-charge) – General Manager (Urban Affairs) • AGMs – Social, Environmental and Urban Reforms • Managers – Social (Participation, IEC and Communications),

Environmental and Urban Reforms The staff working on social and environmental issues would be called the SEMU, and would report to the Project Manager (overall-in-charge).

Urban Development Department through DMA and DTP would take part in all municipal reforms activities of the KMRP. The DMA and DTP would also play an active role in the implementation, supervision and progress monitoring of all CAP activities.

BMP

BMP implements the BMP investment programme and institutional development components of the BMP. BMP has to ensure that the social and environmental issues of the sub-projects are addressed. There will not be a separate social and environmental management framework for BMP. Hence, BMP’s role is a combination of roles of KUIDFC, DUDC and ULBs. However, BMP could make use of the panel of consultants available with the KUIDFC for PMC, and M&E Consultants.



BMP has to obtain the services of an environmental specialist and social and communication specialist for implementing BMP component. These two specialists will have to be placed in the PIU in BMP. These services could be on deputation from appropriate departments like the environmental specialists from PCB and social specialist from social welfare department.

Panel of Consultants

KUIDFC would engage consultants for certain tasks:

• Design consultants (preparation of feasibility studies, preliminary project reports and detailed project reports).

• Supervision consultants (implementation monitoring, evaluation and supervision, and quality control)

• Procurement consultants (pre-qualification, short-listing, preparation of bidding documents, evaluation, recommendation for award of works, preparation of contracts for signature, studies, training, etc.)

• Training, HR and Institutional Consultants (Training Needs Assessment, Training material preparation, training, ToT, Institutional performance evaluation, Studies, training, etc.)

• Environmental consultants (EIA, EMP, Studies, training, auditing of the environmental components of the SEMF)

• Social, Community and Communication consultants (Social Assessment, RAP, Community Participation and Management, IEC, Communication strategies, communication material, media strategies, and auditing of the social components of the SEMF)

KUIDFC would pre-qualify consultants (firms, institutions and individuals) for the different tasks mentioned above. KUIDFC would engage the services of these consultants in coordination with ULBs and BMP.

DUDC

The District Urban Development Cells are created to assist the ULBs in the district in matters related to urban development. DUDCs function under the auspices of the Deputy Commissioner of the district. The DUDC will assist the ULBs in preparing and implementing the sub-projects. DUDCs will supervise and monitor the sub-project progress. The DUDCs will be equipped with the required technical capacity assist ULBs in this function.

DUDCs will assist the ULBs in administering contracts and preparing progress reports for KUIDFC.



ULBs

ULBs are the second-tier urban infrastructure implementing agencies. They are responsible for providing cost-effective, innovative, sustainable and socially and environmentally sound urban infrastructure projects and services. They are also accountable for implementing the social and environmental requirements at the sub-project level in the SEMF. They are the interface between KUIDFC and the public. Their specific roles and responsibilities are:

• Passing of the Council Resolution on participation in KMRP • Preparation and signing of MoU between KUIDFC and the ULB • Preparation of CIP • Organize stakeholder consultations and incorporating their concerns in

the projects • Prepare DPRs with the help of design consultants • Ensure adherence to social and environmental regulations during project

implementation • Plan and execute social and environmental management plans through

contractors and monitoring them through supervision consultants • Identify project-wise RAP and EIA requirements and build in-house

capacity to address RAP and EIA/EMP requirements • Coordinating the periodic reporting of progress of the various sub-projects • Prepare O&M plans and ensure the practices are institutionalized • Ensure involvement of public interest groups, private sector organizations

and NGOs in the O&M of urban infrastructure facilities

ULBs will enter into agreements with KUIDFC for sub-project funding. ULBs will administer the contracts for services, works and goods procured by them at ULB level.

Panel of Advisors

It is envisaged that at the ULB level an external support structure will be formed viz. Panel of Advisors. This panel consists of consultants, practicing managers, outstanding local NGOs and subject matter specialists.

These advisors can be local practicing individuals, firms and institutions like local colleges and universities, both technical and social, most likely to stay within the district and available for DUDC and ULBs in case of any requirement. These resource persons, once trained can be used for training others. They will have knowledge of sub-project history through regular participation and interaction with the DUDC, ULBS, Consultants and Contractors. These persons could be used during studies, evaluations, etc. The remuneration to them could be on daily basis. The institutions could be used



for conducting surveys, studies, testing, etc. These advisors are to be identified by the DUDC and ULBs.

There will be an yearly prequalification for empanelment of advisers based on the following criteria:

• A minimum of post graduation or doctorate degree in respective disciplines

• A minimum of 15 years of experience in the sector • A minimum of 5 years of exposure outside the state preferably abroad in

the sector • A minimum of 10 years of experience of working with bilateral and

multilateral projects • Good communication and interpersonal skills which include English and

Word (Microsoft)

These advisors would get exposure to the sub-project cycle and also participate in the training programmes. This panel would assist and provide advisory and expert consulting support to DUDCs and ULBs on the following aspects:

• Conceptualization of social and environmental issues and provide assistance to incorporate in project proposals

• Formulation of project proposals • Identifying specific concerns, issues and risks and expert assistance on

addressing such issues • Strategies and plans for stake holder consultations; analyzing findings,

translate into action plans for community involvement • Communication strategies and actions • Enabling conflict resolution capacities (with community) across projects • Providing function-specific expert assistance (e.g. designs and drawings,

technical trouble shooting during project implementation etc) • Micro level inputs on social and environmental issues • Direct inter-face with contractors and training on technical matters • Educating contractor staff on matters relating to environmental legislation

and assisting them to adhere to legal requirements • Capacity building of contractors and staff on social and environmental

audit issues These advisors will be empanelled by the Deputy Commissioner of the district through the DUDC. These advisors will be paid a sitting fee, as decided by the DC, when they attend meetings. Travelling allowance and per diems will be paid as decided by the DC. The advisors will be paid a fee (as mutually agreed between the advisor and DC) when they are entrusted an assignment.



Capacity-Building & Training Background

Considering that (i) urban reforms are relatively a new concept for many partners and institutions and (ii) the overall socio-political milieu in which they currently operate is complex, the capacity-building efforts of institutions receive a greater significance. Taking this account, this chapter addresses capacity-building efforts on five separate segments (i) Training Needs assessment, (ii) Training Design and Delivery, (iii) Broad based Workshops and Seminars for Learning and Experience Sharing, (iv) Activating a Support Structure of Advisory Panels and Consultants and (v) Policy Studies focusing on future strategies.

Objectives

The objective of the capacity-building initiatives is the following:

• To build and strengthen the capability of urban service delivery institutions (UDD and ULBs) and other partners (Contractors, Consultants) to understand, appreciate and respond to the needs and priorities of the poor.

• To enable the staff and personnel of these institutions to look beyond the narrow objectives of performing their duties and sensitize them to the need for adopting high quality service delivery standards.

• To orient the service delivery staff and elected urban body representatives to the social and environmental requirements.

• To efficiently and effectively plan, execute and manage urban infrastructure projects.

• To monitor, document and institutionalize successful practices and integrate new learning into institutional systems and transform into learning and growing institutions

Approach

Systematic capacity-building initiatives will be introduced only after completion of training needs assessment. However, since capacity-building goes beyond mere imparting training institutionalization of best practices becomes a prerequisite for improved service delivery, a more comprehensive approach involving three inter-linked phases is suggested viz. i) Diagnostics ii) Intervention and iii) Institutionalization.

Diagnostics PhaseTypically, a diagnostics phase would include a structured dialogue with the actors and partners involved, which may extend to conducting a desk research followed by a sample survey. This would culminate in a diagnostics report detailing out issues on hand (systems, policies, people and processes)



that inhibits top quality service delivery; and strategies to overcome identified bottlenecks. Diagnostic study also involves gathering an in-depth understanding of the problems, issues, complexities of urban service providers on one hand, and synthesizing the concerns, expectations and aspirations of receivers of such services. Various tools and techniques including structured instruments will be put to use for this purpose

Intervention PhaseDiagnostics phase would be followed by actual intervention phase. This phase will have three distinct categories of interventions viz. (i) Training Design and other Interventions, (ii) Delivery of Training Programs and other Institutional Support Systems and (iii) Organizing Workshops and Seminars for cross ULB learning.

Institutionalization PhaseThe Institutionalization phase forms an integral and on-going phase of capacity building, though it is treated as a distinct initiative for practical reasons. The learning from reform implementation and enabling the ULBs to institutionalize required changes in systems, policies, procedures and processes will be the outcomes of this phase. This will also involve identifying appropriate state level consultants and institutes to carry out capacity building initiatives on a sustainable basis and extending direct funding and consulting support to them.

Training Needs Assessment

This involves drawing up an inventory of what skills and capabilities are available within the organizations and comparing it with what skills are required to develop good projects and to deliver good quality service. Participative techniques will be used to arrive at these, in the process involving people of urban bodies at various levels.

Training Design and Delivery

The actual training design and delivery will follow the training needs assessment phase. However, based on the current understanding of the functioning of ULBs and using our previous experiences with similar institutions, a few universal capacity-building and training interventions are suggested and consequently relevant programs outlines are designed. These outlines may be treated as tentative, as a first sketch towards developing a firm action plan at a later stage. The suggested programs and broad outlines are given under 10.10.



Workshops and Seminars for Learning Experiences

This will consist of three levels of broad based workshops and seminars i.e. i) state level, ii) ULB level and iii) sub-project level. Generally, there will be two types of workshops and seminars at all three levels. For example, i) Knowledge Sharing Workshops lead by outstanding socio-environment professionals, where experts will share their experience elsewhere in the country, ii) Knowledge Networking Workshops, where structured exchange of learning will be promoted between various ULBs and iii) sub-level project specific learning on technical, social and environmental aspects will be facilitated.

Support Structure of Advisory Panels and Consultants

It is extremely important that an enabling environment is created and sustained for ULBs and UDDs and a dependable support mechanism is instituted and activated. One such critical support mechanism is to create an institutional scenario that promotes high quality performance culture. While this work is time intense and results are mostly intangible, what is immediately required is creation of technical and general back-up structures to support the core team of reform implementers. ULBs and UDDs are relatively unfamiliar with the complex tasks of implementing urban reforms. In the absence of successful past experiences to fall back on, this unfamiliarity compels them to not to experiment with new initiatives. Therefore, when they are confronted with unfamiliar terrains of reforms, their natural response is to be inactive. This generally leads to faulty and delayed implementation of the task. To overcome this bottleneck, it is proposed to constitute a ‘Project Advisory Body’ and an ‘Expert Panel on Call’ in each of the ULBs. This forms a part of the capacity-building effort within a given ULB. A schematic presentation of the suggested model is given below. The specific roles, responsibilities of these Project Advisory Bodies and Expert Panel on Call are given in the Chapter 9.



Project Advisory Body

Academicians, Environmentalists, NGOs, KUDIFC representatives

Suggested Support Structure for Capacity Building

Policy Studies for Future Strategies

Following from all of the above activities is a set of policy studies for developing future strategies. Sustainability of institutional and individual capacity will be ensured vide these measures, since conducive policy framework create an enabling environment for high caliber performance. It is proposed to initiate these measures on an ongoing basis with the involvement of all stakeholders. The typical policy studies would involve (i) Review of HR and training policies of each of the urban bodies (ii) Policies for promoting high quality performance (iii) Bench marking service quality standards (iv) Cost effectiveness of projects and sub-projects (vi) Institutionalizing decision making systems for improved service delivery (vii) external and internal communication. KUDIFC and Advisory Panel members will take a lead role in this and ensure quick and effective cross-functional learning.

ULB Core TeamTechnical Staff

Reform implementation staff Finance staff

Elected representatives

Contractors and Consultants Anchor Team

Project specific staff Expert Technical staff

Expert Panel on Call

Architects, Engineers, Finance and Technical

specialists Sociologists

Environmentalists Economists



Programmes to be conducted

Some required and suitable readily available training programmes run by reputed institutions will also be made use of. Among these are the construction management training by National Institute for Construction Management and Research and Procurement training by Administrative Staff College of India, quality control training by Engineering Staff College of India, etc.

Some tailor-made training programmes as per the requirements of sub-projects would be designed by the training consultants and administered at Bangalore or one of the central districts. The likely trainees would be the following:

• Concerned KUIDFC/ UDD/ DMA Officers • BMP Officers • DUDCs and ULBs Officers • External Advisors • Panel of Advisors • State Level Consultants and District Level Consultants having running

contracts Some samples programmes are given below:

Suggested Broad Based Programmes

Program Title: Basic Orientation to Urban Reforms

Participants: Key Staff of ULBs and Elected Representatives Duration: Two days

Day One

Session Duration Coverage Methodology I One hour Current structure method of

ULB working in Karnataka; a reflection

Presentation by select ULBs

II Two hours Urban Reforms-The context, content and need for reforms

Presentation by KUIDFC, followed by discussions

III One Hour Social and Environmental Policy Statement

Presentation by KUIDFC and debate on the components of policy

IV Three hours Projects and sub-project categorization and budgets

Discussion and case studies by select ULBs

Day Two I Two hours Environmental impacts and

mitigation measures Exercise followed by discussion

II Three hours Project Cycle-Social and Group exercise with



Environmental requirements project simulation III Two hours Organization Roles and

responsibilities-KUIDFC, UDD, DMA, ULB etc.

Presentation and discussion

IV One hour Open discussion and conclusion

Program Title: Project Planning and Formulation Participants: Technical and Other Staff of ULBs

Duration: Two days

Day One Session Duration Coverage Methodology I Two hours Project Planning Tools and

Techniques Presentation by Experts

II Three hours Typical Project Cycle and integrating social and environmental aspects into projects

Discussion on concepts and practices and hands on project work

III Two hours Technical Aspects of projects Presentation of typical projects by Experts and Practitioners (Advisory Body)

Day Two I Three hours Principles of budgeting

projects; detailed cost economics

Presentation of typical projects by Experts and Practitioners (Advisory Body) and hands on project work

II Three hours Tendering and Evaluation Procedures

Individual and group exercise

III Two hours Open discussion and conclusion

Program Title: Social and Environmental Management Framework Participants: Staff of ULBs; UDD; Private Service Providers and Consultants

Duration: Three days

Day One Session Duration Coverage Methodology I One hour Opening discussions, including

policy statements KUDIFC to lead discussions



Program Title: Acquiring and Developing Sensitivity to Public Aspirations Participants: Staff Members of ULBs; Elected Representatives

Duration: One day

Day One Session Duration Coverage Methodology I Three hour Understanding Aspirations of

general public and its criticality to successful project implementation

Discussion and presentation on lessons learnt in other developing countries

II Two hours Responding to expressed and hidden aspirations; setting high quality service delivery standards

Comparison between two imaginary ULBs (one rated poor performing the other high performing)

III Two hours Public consultation tools, techniques and methods

Discussion and application of tools and techniques

Methodology and Timeframe

KUIDFC would engage external consultants to undertake the training needs assessment, development of the training plan, training material pertaining to the SEMF, conduct of the training during the project duration and carrying out the post-training feedback assessment.

KUIDFC would ensure that the training needs assessment, the development of the training plan and preparation of the training material is completed within one year of project implementation. The training delivery would commence in the second year of project implementation and would continue till the last year. The training feedback assessment would be done in two stages, i.e. prior to the mid-term review and in the end of the project period.



Budgetary Requirements General

For establishing and maintaining the SEMF, there are manpower costs for the staff at KUIDFC, costs for capacity-building & training, costs for engaging the services of advisers as required, costs related to resettlement & rehabilitation if any, physical costs for implementing environmental mitigation measures, costs for engaging consultants for specific tasks and costs for any special studies that need to be done to influence the municipal reform process. Most of these costs are borne by other budget heads available within KMRP.

Manpower resources

The SEMU will have 1 General Manager, 2 Assistant General Managers (Urban Affairs and Environment) and 1 Manager (Social and Communications) and 1 Manager (Environment). The General Manager will have a part-time, oversight responsibility. The Assistant General Managers and two Managers will have full-time responsibility. The costs associated with these staff are to be borne by KUIDFC under PDAF.

Capacity-building

The budget for training and capacity-building will be as follows:

Component Assumptions Budget in Rs.

Millions Training Needs Assessment

Twice during programme 2 person months for each

1.00

Training 4 programmes per year for 3 years 1 person month for each programme design 25 participants per programme

3.00

Field Visits 3 visits per year for 3 years 15 persons per visit

2.00

Training Feedback Assessment

Twice during project Each 2 person months

1.00

Studies 2 per year for 3 years 3 person months per study

4.00

Panel of Consultants 20 person months per year for 3 years 6.00 Others 3.00 TOTAL 20.00



External Support

KUIDFC would seek external advisory support at two-levels: State and District. The costs associated with these external advisors would be met from the PDAF or other sources internal to KUIDFC.

Sub-project costs

Any physical costs pertaining to social and environmental mitigation measures will form a part of the sub-project costs. In addition, costs to be incurred during sub-project preparation would form a part of the design consultant’s costs, and the costs to be incurred for monitoring the sub-project implementation would form a part of the supervision consultants / engineer’s costs.

Studies

EAs and SA / RAP preparation

For Ea and Sa category of sub-projects, consultants independent of the design consultants would have to undertake the preparation of the EA and RAP reports. The costs for these consultants would be borne under PDAF.

Comprehensive review of SEMF during mid-termPrior to the mid-term review, KUIDFC would undertake a comprehensive review of the SEMF with support from external consultants. These costs would be borne under PDAF.

Special During the project implementation, KUIDFC would identify special studies - pertaining to social and environment issues – that are relevant to the municipal reform process. Wherever external consulting support is required for these studies, the costs would be borne under PDAF.



Updation / Maintenance of SEMF Need & nature of the updation

SEMF has been prepared during the preparation phase of KMRP. All effort was taken to collect the relevant information and to include in the SEMF. Nevertheless, there would be scope for improving the SEMF based on implementation experience. As more sub-projects are proposed to KUIDFC, more information on social and environmental issues would become available. Using this information, it would be possible to improve the SEMF, particularly in terms of making more relevant and appropriate to the implementation context.

The nature of improvements will pertain solely to improving procedures and processes internal to KUIDFC in terms of facilitating better social and environmental management practices in its sub-projects, and in ensuring the legal requirements are kept upto date.

New legal requirements & updation

KUIDFC would update the SEMF on any new legal requirements –modification of existing legislation or introduction of new legislation – as and when they are announced or made applicable. KUIDFC would also ensure that the design, implementation and operation of all its sub-projects are in line with the new legal requirements.

In particular, KUIDFC would update the chapter on legal requirements as and when required.

Comprehensive SEMF review

KUIDFC would undertake one thorough / comprehensive review of the SEMF during the project period. Based on the review, the SEMF would be updated if necessary. KUIDFC would undertake this review and revision prior to KMRP’s mid-term review by the World Bank. The ToR for this review is included in the Annexure 0



Annexures R & R Policy

Resettlement and Rehabilitation Policy for Project Affected Persons

For Karnataka Municipal Reforms Project

Introduction

Karnataka Urban Infrastructure Development Finance Corporation (KUIDFC) as the urban infrastructure financing agency will receive Sub-Project proposals from Urban Local Bodies (ULBs) for investments under Karnataka Municipal Reforms Project. KUIDFC will screen all the sub-projects prior to approval to ensure their consistency with the Resettlement and Rehabilitation Policy (R&R Policy) described here. This R&R policy incorporates lessons learnt from the Karnataka State Highways Improvement Project, Karnataka Urban Water Supply and Sanitation Sector Improvements Project, Karnataka Power Sector Reforms Project, Karnataka Tanks Project, etc. This policy framework developed includes, among other, the following: • Type of Sub-Projects and Impacts • Categorization • Policy principles • Eligibility Criteria and Entitlement Framework • Organizational Arrangements and Roles and Responsibilities • Monitoring and Evaluation • A Framework for Participation of Stakeholders • Grievance Redressal Mechanism Type of Sub-Projects and Impacts

KUIDFC would invest in sub-projects providing urban infrastructure to ULBs. A summary of the type of sub-projects into which these investments go and the likely social impacts are enumerated below: Type of Sub-Projects

Social Impacts

• Water • Sewage,

Drainage and Sanitation

• Solid Waste

Positive • Productive use of time • Improvements in income patterns • Health and Environmental improvements • Improvements in quality of life and human dignity



Management • Transportation

(Roads and road related)

• Lighting and Signage

• Commercial Civic Amenities

• Public Civic Amenities

• Urban Planning and Development

• Reduced nuisance of open defecation due to Low Cost Sanitation

• Less suffering during monsoons and adverse climatic conditions

• Improved public safety • Better infrastructure and transportation facilities • Improved access to services • Opportunities for social interaction • Improved community participation and sense of

ownership Negative • Land use change • Land Appropriation • Displacement (physical/economic) • Changes in accessibility/ delivery • Changes in employment patterns

All the sub-projects aim to improve quality of living of the citizens of the ULBs. The significance of these listed impacts depends on the individual project, its size and location. The size of the sub-projects would be small both physically and financially. Due to the likely small size of the sub-projects, adverse impacts, if any, would be at its minimum. When there are social impacts, KUIDFC is committed to mitigate them. The social policy of KUIDFC has the following objectives: • Avoiding or minimizing resettlement • Ensuring proper resettlement and rehabilitation of Project Affected Persons • Addressing stakeholders legitimate concerns through a process of

consultation and participation • Involving all stakeholders in the whole project life cycle • Improving the living standards of PAPs • Providing protection and access to vulnerables • Addressing equity, gender and inclusion issues in the project design • Minimizing health and safety hazards The above objectives are socially relevant and aim to reduce the Land Appropriation and resettlement. One of the key objectives is to improve the living standards of the people affected by project interventions. In this context, preparation and usage of a social management framework becomes relevant. Categorization

Population displacement (physical/economic) would rather be insignificant under the sub-projects. It is possible that people could be affected by sub-



projects involving land appropriation like new roads, landfill sites, markets, etc. The requirement of land for these infrastructure facilities, however, is small. Hence, the population displacement would also be in that order. The individual sub-project applications for funding would specify these requirements and impacts. The categorization for the framework is based on the number of the affected people. The likely sub-projects have been categorised to facilitate speedy screening, appraisal, approval and implementation. This categorisation would also save on time and money. The Social categorization of sub-projects is as under:

• Sa: More than 200 PAPs • Sb: Between 1 and 200 PAPs • Sc: Minimal or No PAPs As per the categorization of the sub-projects, for Sa category Sub-Projects, the KUIDFC would ask the ULBs to prepare a Resettlement Action Plan (RAP) before sub-project appraisal. For Sb and Sc categories, the ULBs have to follow a screening mechanism to verify, if the sub-projects really fall under these categories. Moreover, if they fall under the Sb category, the ULBs have to ensure that the project proposals include measures to mitigate adverse impacts duly following this R&R Policy. Overarching Principles

Avoiding or Minimizing Resettlement: KUIDFC and the participating ULBs would try to avoid or minimize adverse impacts (Land Appropriation and resettlement) through appropriate technical and management alternatives. The ULBs would also consider using alternatives like obtaining consent of the stakeholder where Land Appropriation triggers resettlement. These alternatives would be discussed with the stakeholders before making a final decision. Proper Rehabilitation: KUIDFC and the participating ULBs would rehabilitate the Project Affected Persons (PAPs) properly in a timely, transparent and progressive manner. The entitlement framework (and the RAP, if any), grievance redressal mechanism, legal options, etc. would be disseminated among the concerned stakeholders. The implementation of resettlement plans would aim at sustainable livelihood options that would at least restore, if not improve, the standard of living of the PAPs. Stakeholder Participation: The ULBs would ensure that stakeholders participate in all the project activities including planning and implementation of mitigation measures. The participating ULBs would address the PAPs legitimate concerns and provide opportunities and avenues for their



participation. In order to provide greater ownership and sustainability, the PAPs would be a part of the decision making process, where appropriate. Protection to Vulnerables: Protecting the marginalized, socially and economically disadvantaged including women, children and other vulnerable groups and provide opportunities for such groups to take advantage of the investments. The endeavour would be to address equity and inclusion issues in the project design itself. Gender issues will be addressed through women empowerment in all the project activities. This protection to the marginalized involves poverty alleviation programmes to the Below Poverty Line families. Health and Safety: Minimizing health and safety hazards and providing opportunities for enhancing public and environmental health. The endeavour would be to improve the public and environmental health and safety of the populations in and around the participating ULBs. Definitions

Project Affected Persons (PAPs): PAPs are individuals who are impacted directly or indirectly by the project. For example, persons whose land is acquired or their houses are affected or whose livelihoods are lost.

Project Affected Families (PAFs): PAFs are households that may be impacted directly or indirectly by a sub-project as a unit (the fact that a household is entitled does not preclude members of the household from qualifying for assistance as individuals). A PAF will consist of an affected person along with his/her spouse and minor children. PAF will be a unit for support in relocation. All those above 18 years of age would be considered as independent family for the purpose of eligibility for support in their economic rehabilitation. Project Affected Groups (PAGs): PAGs are groups of people or communities who are affected jointly, directly or indirectly, due to the implementation of a sub-project. For example, when public utility lines are disrupted a community as a whole is affected, it does not imply dislocation from a place but certain services are stopped for upgradation and disruption of facilities as a whole. Entitled persons (EPs): EPs are PAPs who qualify for, or are entitled to, assistance/compensation since they will be resettled or otherwise negatively impacted by a sub-project. For temporary losses or services, the ULB would be making alternate arrangements covering the period of loss. Vulnerable PAP: A PAP is defined as a vulnerable if (A) the land acquired constitutes 25% or more of the total land holding and the total land held by the affected person before Land Appropriation is unviable (In case of



rural/agriculture lands, defined as less than 1 ha of irrigated land or 2 ha of un-irrigated land. In case of urban lands, defined as less than 100 sq.m. of urban land) or if the total land remaining with the project affected person becomes operationally unviable as a result of the acquisition under Land Acquisition Act. This operational unviability will be decided by the grievance redressal committee.

Project Affected Persons belonging to SC and ST groups, below poverty line groups, women (widows, divorced, destitutes, etc. heading households), children, elderly and the differently abled are also considered as vulnerable. Cut off date: For persons affected by Land Appropriation, the cut off date for eligibility would be the date of notification under section 4(1) of Land Acquisition Act and for all others it would be the date of socio-economic survey. Private Property Owners: These are persons who have legal title to land, structures, or other immovable assets required for the project and are accordingly entitled to compensation under the Land Acquisition Act. In the case of a joint-title deed, the replacement land or cash will be given to the joint holders who will be treated as a unit. Squatters/encroachers: These are persons who do not have legal title to land and structures or other immovable assets required for the project and include those squatting within the public areas (roads, public places, etc.) and in any land either private or public for residential and business purposes. Squatters would be qualified as a vulnerable groups and assistance provided to relocate and rehabilitate them. There are also persons who extend their built structures and/or activities into private and/or public land. As a rule, they are not eligible for compensation for the land they occupy. However, assistance would be provided to them by way or assistance in relocating and rehabilitating them if they fall under the category of vulnerable PAPs or vulnerable groups. Loss of livelihood: People losing their livelihood sources (income, employment) as a result of project interventions will be provided support to restore their economic base. Indian best practices, judicial decisions as well as the approved GoK land acquisition frameworks (for Karnataka State Highways Improvement Project, Karnataka Urban Water Supply and Sanitation Sector Improvements Programme, Karnataka Power Sector Reforms, Karnataka Tanks Project, etc.), etc. all note that the absence of legal title to land should not be construed to exclude vulnerable groups and the poor from assistance. A cut off date of census/ enumeration of PAPs be decided (immediately after a sub-project proposal is accepted) and type of compensation and assistance



be decided. Disputes or grievances arising out of the identification process will be resolved through the verification process and the grievance redressal mechanism incorporated in the framework. Compensation: This refers to restitution made to property owners under the Land Acquisition Act. The ULB would be responsible for paying the compensation. In this context, compensation refers to payment made when “eminent domain” is exercised and title of a property is transferred from a private entity to the government. Assistance: This refers to all other support mechanisms such as grants, assets, services, training, etc. given to eligible persons or groups including vulnerables, people living in slums, squatters, encroachers, etc. Assistance will be provided by the ULB from the project. Services: These include counseling, advice, assistance provided in realizing assistance from other programmes, training to be imparted to all eligible persons or groups with special emphasis in case of vulnerables, slum dwellers, squatters and encroachers. Community Participation

KUIDFC has a commitment for community participation in each of the sub-projects take-up by the ULBs. Community Participation process is ensured through a number of mechanisms as under. The negotiations committee for rate fixation for Land Appropriation and the district grievance redressal committee will have the representatives of PAPs and local Resident Welfare Associations (RWA). The implementation of the RAP will be monitored by Representatives of RWA and PAPs. The dissemination of R&R information, sub-project information and other IEC activities will be carried out by the NGOs and RWAs under the guidance of KUIDFC/ ULB. RAP Preparation and Approval Process

When a sub-project falls in the Sa category, the ULB prepares a RAP along with the Detailed Project Report (DPR) and submits to the KUIDFC. For other sub-projects, DPRs will include measures to mitigate any resultant adverse impacts, if any. The RAPs will be prepared by the ULBs with the help of consultants. This sub-project specific RAP would cover the following: • Socio-economic Information and Baseline Data • Compensation Rates and Standards Proposed



• Additional Impacts and Policy Entitlements as Identified • Resettlement Sites Information • Standard of Living Improvements and Restoration Programmes • Implementation Schedule • Cost Estimates • Institutional Set Up for Implementation and Monitoring The RAP prepared by ULB, for Sa category projects will be submitted to the KUIDFC, which will appraise and approve the RAP after a thorough scrutiny and field visits for verification. The payment of compensation and provision of assistance and services will be linked to the sub-project civil works implementation. No civil works be initiated unless compensation is paid for land and other immovable assets required for the project and support extended to eligible PAPs for their resettlement. Milestones of both components will be linked in the implementation schedule. This will be specified in the DPR (and RAP) to be prepared by ULB for each sub-project. Land Appropriation - Compensation Valuation

The following valuation methods would be used for arriving at the compensation to be paid for land, houses and assets to PAPs. Land for Land: Where available and possible and where the vulnerable PAPs and vulnerable groups want, loss of land should be compensated by providing alternate land having same value and usage. However, the cost of registration, transfer, land clearing and preparation, and any other taxes as required would be paid by the ULB to the PAP. Market Rates for Land: For land acquired, the rate used for arriving at compensation will be the prevailing market rate of land of same use, with similar or improved public infrastructure facilities and services and located in the vicinity of the affected land. The compensation will include the cost of any registration, transfer taxes, etc. Agricultural land: The agricultural land acquired, the rate used for arriving at compensation will be pre-displacement rate of land of equal productive potential or use located in the vicinity of the affected land. The compensation will include the cost of land preparation to levels similar to those of affected land, the cost of registration, transfer taxes, etc. Houses and Structures: The compensation includes market cost of the materials to build a replacement structure, or to repair a partially affected structure, the cost of transporting building materials to the construction site,



the cost of any labor and contractors’ fees, the cost of any registration, transfer taxes, etc. In determining the replacement cost, depreciation of the asset and the value of salvage materials are not taken into account. The value of benefits to be derived from the sub-project will not be deducted from the valuation of an affected asset. Compensation for trees, crops and other assets will be based on the replacement value using existing prices per tree prepared by relevant agencies, taking into account local market prices. Rates for land and structures will be decided through a process of transparent negotiations. Lands would be acquired as far as possible through direct purchase at market rates based on willing seller-willing buyer basis. In cases where this is not feasible, the land would be acquired under the Land Acquisition Act (LAA). Benchmark market rates for each ULB would be established by the Deputy Commissioner of the concerned district, prior to start up of negotiations with the PAPs as a low profile exercise and the information will be used to monitor how the final rates are agreed upon. If the negotiated rate is less than the benchmark rate by 15% or less, the ’negotiations’ would not be considered automatically as free and transparent. In such cases, a special assessment of the transaction would be carried out by the Project Manager to assess the transparency of the negotiations and based on the findings, suitable action (such as renegotiation or acceptance of the transaction) would be initiated. In case any PAP and the project authorities do not reach any agreement or when the situation so warrants due to reasons such as administrative efficiency, the land would be acquired under the Land Acquisition Act (1894 and as amended) However, in such cases an aggrieved party can approach court for enhancement of compensation or any other dispute with regard to LA. There are two possible situations for determination of compensation when the land is acquired under LAA. The compensation may be decided based on the Consent award system (negotiated settlement) or based on the procedures specified in the act by the Land Acquisition Officer. Under the consent award system, the PAP negotiates with the Deputy Commissioners of the districts for the loss incurred and once the amount is agreed upon, the PAP cannot move the court for enhancement of the compensation. As far as possible, while using LAA for acquisition, the project will acquire lands using the consent award system. All efforts will be made to ensure that there is transparency in the negotiations and the seller has voice in the negotiation process by suitably structuring the negotiating committee. Prior to negotiations, the negotiating committee will fix applicable market rates for



different categories of land to be acquired for the ULB. These rates would become a benchmark rates for fixing the compensation. The Deputy Commissioner would be the primary buyer and the acquired lands would be legally transferred and registered in the name of the ULB. Any problems in the process of Land Appropriation and/or in coordinating with other departments will be brought to the notice of the concerned Deputy Commissioner for assistance in finding solutions. At state level, the Project Manager KMRP, KUIDFC will monitor the Land Appropriation for progress and for compliance with the framework. Payment for the Land Appropriation will be done by ULBs through respective Deputy Commissioners to the Land Owner. The Deputy Commissioner will transfer the purchased/ acquired land to the concerned ULB. The DPRs prepared by ULB include the cost of Land Appropriation, resettlement and rehabilitation costs and other costs of other assistance. These estimates will be reviewed by KUIDFC with the help of consultants before approval. These costs are borne out of each sub-project funds provided by KUIDFC to the ULBs. The Deputy Commissioner will be the primary buyer of land. The ULB transfers the necessary funds to the Deputy Commissioner facilitating the purchase of land. The ULBs will be responsible for all payments related resettlement and rehabilitation. Entitlement Framework

The below entitlement framework provides the details of support for resettlement and economic rehabilitation. The choice of the entitlement rests with the PAPs. Impact Type Beneficiary Entitlement Option Responsibility 1. Loss of land a. Homestead i. With valid title, or customary or usufruct rights

Household Equivalent area of land or cash compensation at replacement value and support during transition period.

DC/ EE, ULB

ii. Squatters Household Alternative site as per Government norms and support during transition period.

DC/ EE, ULB

b. Agricultural land i. With valid title, or customary or usufruct rights

Titleholders Alternate land of equivalent productivity potential or cash payment at replacement value.

DC/ EE, ULB

ii. Tenants, sharecroppers, leaseholder, encroachers

Individuals as identified in accordance with existing

Reimbursement for unexpired lease, transition allowance equivalent to 6 months of income from the land and support during transition period.

EE, ULB



laws c. Commercial/ Industrial/ Institutional

i. With valid title, or customary or usufruct rights

Titleholder Equivalent land or cash at replacement value and support during transition period.

DC/ EE, ULB

ii. Tenant, leaseholder Unit Reimbursement for unexpired lease, transition allowance equivalent to 6 months income from unit and support during transition period.

EE, ULB

iii. Squatter Unit Transition allowance equivalent to 6 months income from unit and support during transition period.

EE, ULB

2. Loss of structure a. House i. With valid title, or customary or usufruct rights

Household Structure of equivalent standard or cash compensation at replacement value. 6 months rent to re-establish residence. Assistance in establishing residence in case of vulnerables and support during transition period.

EE, ULB

ii. tenant, leaseholder Household Transition allowance equivalent to 6 months rent to re-establish residence. Assistance in establishing residence in case of vulnerables and support during transition period.

EE, ULB

iii. Squatters, pavement dwellers

Household Basic dwelling unit as per government norms and support during transition period.

DC/ EE, ULB

b. Commercial/ Industrial/ Institutional

i. With valid title, or customary or usufruct rights

Unit Structure of equivalent standard or cash compensation at replacement value and support during transition period.

EE, ULB

ii. tenant, leaseholder Unit Transition allowance equivalent to 6 months income from unit and support during transition period.

EE, ULB

iii. Squatters, pavement dwellers

Unit Basic unit as per government norms and support during transition period

DC/ EE, ULB

3. Loss of livelihood/ trade/ occupation

i. Wage employment

Individual

Training in skills and assistance in the form of grants to establish economic base and support during transition period.

HO, ULB

4. Loss of access to common resources and facilities

i. Rural common property resources

Community

Replacement CPRs/amenities or providing minimum Government

EE, ULB



standard.

ii. Urban civic amenities

Community Access to equivalent amenities/services within reasonable distance.

EE, ULB

5. Loss of standing crops/trees

Owner Cash compensation equivalent to market value for crops and market value of the tree products for the remaining life of the tree.

EE, ULB

6. Losses to Host communities

i. Amenities/Services Community Restore losses as a result of re-settlement or amenities/services equivalent to those provided to PAPs.

EE, ULB

• Support during transition is transportation charges for self, family and belongings from the existing facility to new location.

• Rent to be calculated as per existing government norms • Training to be given will be as per available government training programmes in

the area. • Grants to establish economic base will be tied up with the existing self-

employment programmes of government. Institutional Arrangements

The institutional arrangements would be as below: Level Institution Function

KUIDFC Financing and Monitoring Agency

� Approves the RAP for the sub-projects proposed by ULBs after scrutiny and appraisal.

� Facilitates the formation of Grievance Redressal Committees headed by the Director, Municipal Administration at the state level and a District/ULB level committee headed by the respective Deputy Commissioner

State

General Manager (Urban) KUIDFC Framework Monitoring Officer

� Enquires into Land Appropriation cases that vary substantially from market rates and initiate necessary action

� Monitors the process for progress and compliance with framework including the social management and community participation aspects

� Forwards grievances received by KUIDFC and initiates appropriate action

DMA � Heads the Grievance Redressal Committee



Grievance Committees (state level) Director DMA General Manager (Urban Affairs) Representative, UDD People Representatives (Max. 2)NGO Representatives (Max. 2)

� Addresses all grievances received though the district level grievance redressal committee and forwarded by KUIDFC

� Monitors the implementation of grievance redressal

DUDC Enabling Agency

� Assists and enables ULBs to prepare and implement sub-projects including RAPs

� Provides technical assistance to ULBs in all matters including implementation of R&R Policy

� Provides assistance in dovetailing other programmes particularly for benefit of PAPs

ULB Implementing Agency

� Undertake SA and prepare RAP for each sub-component of Sa category

� Implement RAP � Pays and provides assistance � Acts as secretariat for necessary

arrangements for LA transactions to be completed

� Implements directions of monitoring officer and grievance redressal Committee.

Deputy Commissioner Buyer

� Initiates an exercise to assess market rates for different categories of lands to be acquired in the ULBs

� Buys land and transfers it to the ULB � Pays compensation � Monitors the entitlement disbursement and

grievance redressal. Health Officer/ EE, ULB EE, KUWS&DB

� Will be responsible for RAP implementation� Coordinate with other counterpart officers

for individual sub-projects � .

District

Negotiation Committee –Members (for each ULB) Deputy Commissioner Assistant Commissioner, Land Appropriation District Registrar, Lands Municipal Commissioner Municipal Engineer Health Officer EE, KUWS&DB President, ULB Local NGO RWA Representative of the area Representative of PAPs

� Decides the Market Rate for various categories viz. Agricultural (irrigated and un-irrigated), Rural, Urban, Industrial, etc.

� Negotiates with land owners � Arrive at compensation norms and

monitors the process of Land Appropriation



Grievance Redressal Committee (District level) Deputy Commissioner Municipal Commissioner Health Officer Municipal Engineer/ EE KUWS&DB President, ULB Representatives of NGOs (Max. 2) Representative of PAPs

� Addresses all grievances received from PAPs and forwarded by DMA

� Investigates into grievances � Monitors Implementation of the decisions

of grievance redressal committee

Grievance Redressal

The constitution of the proposed Grievance Redressal Committees at the state level and district level will be facilitated by KUIDFC. The Director of Municipal Administration (DMA) would head this Grievance Redressal Committee at the state level and the Deputy Commissioner of the respective district would head the district level committee. Any PAP with any grievance can make representation to this committee for redressal. It is proposed that the PAP first registers the grievance with the Deputy Commissioner with a copy to the concerned ULB. After receipt of a grievance, the committee will take up the matter during the next immediate meeting and provide redressal. In no case can grievance be kept pending for more than a month, which means the committee has to meet every month to take stock of the Land Appropriation and rehabilitation and resettlement progress and for redressal of grievances till these are resolved. Implementation of the redressal rests with the ULB. In case the aggrieved party is not satisfied with the redressal, it can take up the matter to the state level committee or in courts. The institutional arrangements include formation of a Negotiation Committee for each ULB to arrive at acceptable (both to buyer and seller) compensation norms. Due care would be ensured to hold negotiations in a transparent manner in the presence of NGOs/ RWA Representative and PAPs’ representatives. The objective of including a local NGO and Representative of RWA is to serve as an independent witness and to ensure a fair and transparent process. The objective of including the President of ULB and a Representative of the PAPs (Sellers) is to prepare a level playing field for rate fixation. Legal Options for LA and compensation: The PAPs will have two kinds of options for addressing their grievances relating to the Land Appropriation. One is the grievance redressal mechanism incorporated in this framework as above. The other is the general legal environment consisting of courts of law to address their grievances. These options will be disclosed to the PAPs during the public consultation process. Monitoring

Monitoring of the implementation of entitlement framework and RAP, if any, be done at various levels. Two types of monitoring is proposed.



Internal monitoring: this is done at three levels. At the sub-project level, as a part of participatory monitoring, the Representative of RWAs and Representative of PAPs would be monitoring the progress of the implementation and report to ULB and the Grievance Redressal Committee. At the ULB level, the ULB will be monitoring the progress of implementation and will submit quarterly progress reports to KUIDFC. The officers responsible for monitoring the progress at the ULB level are the Municipal Engineer, Health Officer and Executive Engineer KUWS&DB. External Monitoring: For Sa type sub-projects, KUIDFC appoints consultants to monitor implementation of RAP. These consultants will submit quarterly progress reports to KUIDFC. KUIDFC would send auditors for social and environmental evaluation to ULBs where Sa and Ea type projects are taken up. Impact Evaluation: to be done by consultants appointed by KUIDFC at the end of sub-project completion. Budgets

Funds required for implementing the provisions of entitlement framework or RAP, where prepared, will be part of the Detailed Project Report for individual sub-projects. Amendment

GoK/ KUIDFC will have powers to amend the provisions of this policy as required.



ToR for the external audit of selected sub-projects

The following is the ToR for conducting the external audit on an annual basis. This audit would cover 25% of Sb and Eb sub-projects.

• To undertake a desk review of selected sub-project documentation to determine how effectively social and environmental issues have been integrated. As part of the desk review, to have discussions with KUIDFC, ULBs and consultants (design, social, environmental, supervision,, etc.).

• To carry out field visits to selected sub-projects to assess how social and environmental issues have been addressed on the ground. As part of the field visits, to have discussions with the ULBs, supervision consultants and contractors, and also DUDCs.

• To assess the completeness and appropriateness of the SMPs/RAPs and EMPs based on the field visit observations.

• To determine compliance of sub-projects to national, state and local legal requirements based on the field visit observations.

• To review the monitoring reports prepared by the supervision consultants and verify how these reflect the ground realities of the sub-project implementation.

• To prepare an audit report that clearly specifies (i) the deviations in implementing social and environmental measures, if any, (ii) positive measures taken at the sub-project level, if any, and (iii) suggestions for further improvement of social and environmental management practices at the sub-project level.

• To review the action taken by KUIDFC a month after the submission of the audit report, and to submit an audit compliance report.

ToR for the SEMF review

The following is the ToR for conducting the SEMF review:

• To assess whether the SEMF covers all the social and environmental issues that are relevant to KMRP.

• To gauge whether the SEMF has served as a tool for KUIDFC to ensure compliance to national, state and local legislations pertaining to environment and social issues,

• To determine whether KUIDFC is administering the internal processes of the SEMF completely and effectively in the various stages of the sub-project cycle, i.e. from sub-project identification to monitoring & evaluation during implementation.

• To discuss with stakeholders, particularly ULBs and their consultants (both design and supervision), about how the SEMF can be strengthened and made more useful to sub-project implementation.

• To deliberate whether the SEMF has contributed towards the project’s broader objective of achieving municipal reform in the state.



• To critically analyze capacity-building initiatives to assess whether intended goals have been achieved.



PART 2 – Section A SOCIAL AND ENVIRONMENTAL …...Karnataka Municipal Reforms Project – SEMF Samaj Vikas ([email protected]) 1 Introduction Project background Government of Karnataka

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