ADB Safeguard Policy Statement (2009)                                                                                      Policy Principles and Requirements

Scope of Application - Applies to all ADB-financed and/or ADB-administered projects and their components regardless of the source of financing, including investment projects funded by a loan; and or grant; and/or other means, such as equity and/or guarantees Safeguards are important because they: Prevent and mitigate undue harm to people and the environment in the development process improve environmental & social sustainability of projects thus improving development outcomes address reputational risk to ADB

Policy Objectives avoid adverse impacts of projects on the environment and affected people, where possible; minimize, mitigate, and/or compensate for adverse project impacts on the environment and affected people when avoidance is not possible; and help borrowers/clients to strengthen their safeguard systems and develop the capacity to manage environmental and social risks.

Safeguards Requirements Environmental Safeguards (SR1) Involuntary Resettlement Safeguards (SR2) Indigenous People Safeguards (SR3) Environment Policy (2002) Involuntary Resettlement Policy (1995) Indigenous People Policy (1998)

National Capital Region Urban Infrastructure Financing Facility Project Number 41598-013 Financing Public sector (Sovereign) Approval Date 10 Aug 2010 Geographical Location NCR and CMAs Sector / Subsector Classification Multi-sector Safeguard Categories Environment: FI Resettlement: FI (B) Indigenous People: FI (C) The project's impact is to improve the quality of life and economic well-being of urban residents in India's National Capital Region (NCR) and counter magnet areas (CMAs). The project's outcome is that urban residents in the intervention cities of the NCR and CMAs use improved growth-supporting and public health and environmental urban infrastructure services in accordance with the priorities of Regional Plan 2021. Project Data Sheet http://www.adb.org/projects/41598-023/details

ADB Environmental Safeguards Policy Requirements and Management

Safeguard Requirements 1: Environment Objectives Ensure the environmental soundness and sustainability of projects Support the integration of environmental considerations into the project decision-making process

Safeguard Requirements 1: Environment Policy Triggers If a project is likely to have potential environmental risks and impacts

Environmental Safeguards Requirements 1. Project screening and categorization 2. Environmental assessment (any sensitive areas or project features requiring Category A?) 3. Alternatives examination (Category A only) 4. Environmental management plan 5. Consultation and grievance redress mechanism 6. Information disclosure 7. Monitoring and reporting 8. Biodiversity protection and natural resources management 9. Pollution prevention and abatement 10. Occupational and community health and safety 11. Physical cultural resources

Screening and Categorization Projects are assigned to one of the following categorization: A - EIA B - IEE C - No EA required FI - ESMS

ESMS Operational Procedures Screening and Categorization ADB ESMS MoEF NCRPB Requirement MOEF Requirement A E1 Full EIA Full EIA (MOEF Level) B E2 B1 Limited EIA / IEE Limited EIA (State Level) B2 Detailed Questionnaire (State Level) No Category No EIA required C E3 Definition of the different scenarios: E1 – significant impacts or in ecosensitive areas E2 – limited environmental impacts (site-specific, few if any of them are irreversible, and in most cases mitigation measures can be defined) E3 – no environmental impacts (likely to have minimal or no adverse environmental impacts) The table also provides the likely MOEF categorization of the project as well as the ADB categorization. For E2 projects, NCRPB will determine the MOEF category using the EIA Notification 2006. Once the NCRPB’s Environmental Categorization is done, the appropriate EIA requirement will be specified to the project proponent/IA. In addition, NCRPB will also advise the project proponent /IA of the MOEF categorization and what needs to be done by the project proponent/IA. Once the MOEF category is determined, NCRPB will have to ensure that the project proponent/IA follows their MOEF process and requirements.

Environmental Assessment (EA) Required to identify potential impacts: Physical Biological Socioeconomic physical-cultural resources Cumulative impacts Induced impacts in the context of the project’s area of influence. Socioeconomic - including impacts on livelihood through environmental media, health and safety, vulnerable groups, and gender issues

Environmental Management Plan (EMP) EMP will include: minimization and mitigation measures monitoring and reporting requirements institutional arrangements capacity development and training measures implementation schedule cost estimates performance indicators

ESMS Operational Procedures E1 Projects NCRPB will advise the project proponent/IA that ADB will be involved in the appraisal process from the very early stages. As part of due diligence, ADB will: Review environmental information collected Determine any additional information needed Assist in determining appropriate mitigation measures Specify conditions under which the projects may proceed ADB will clear the EIA before project approval and will disclose the draft EIA report 120 days before approval of the project. For E1 projects, NCRPB will advise the project proponent/IA that ADB will be involved in the appraisal process from the very early stages.

Involuntary Resettlement and Indigenous People Safeguards Requirements (Social Safeguards)

Basic Principles Avoid or minimize adverse impacts Enhance or restore livelihoods Improve the living standards of the displaced poor and vulnerable people Meaningful consultations Ascertain consent (IP)

Why ADB Safeguards Policy Gaps on DMC’s land acquisition laws Replace lost assets at replacement cost Rehabilitate livelihood (for the titled and non-titled Protect poor and vulnerable groups (IP/EM) Develop rehabilitation strategies Impoverishment risks from development activity Resettlement as development opportunity

Not Doing IR - IP Right Costly delays Public opposition Reputational risks Credibility loss of ADB and Borrower Costly delays: ADB management could ask the government to stop any civil works activity and stop disbursement of fund for any violation of agreed covenants/ ADB policy. This will increase the project cost significantly as the contractor will charge the project for any delays in construction due to this matter. Opposition: (1) social actions (demonstration) , (2) submission of complaints through ADB accountability Mechanism (Consultation/ OSPF and Compliance Review Panel), (3) ADB NGO Forum was formed to monitor ADB projects all over Asia. Courtesy of Urban Resource Centre Karachi  http://www.urckarachi.org/

Safeguard Requirements 2 : Involuntary Resettlement Scope and Triggers: “Physical and economical displacement as result of” Acquisition of assets* Land use changes Restricted access * Full or partial; permanent or temporary

Eligible Displaced Persons Titled Legalizable Nontitled/ informal squatters Legalizable: A person that eligible to have legal title but for one thing or another did not have one. Due to poverty, uninformed, loss of documentation, informal arrangement, etc. Nontitled: no title at all (i.e. squatters, nomad, etc.)

Safeguard Requirements 3 : Indigenous People Scope and Triggers: “If project directly or indirectly affects” IP Dignity or human rights IP Livelihood systems or culture IP Territories or cultural resources

Indigenous People – Working Criteria Distinct Self identification Collective attachment Cultural/ customary institution Vulnerable

Basic Requirements Inform the AP/IP early Prepare the RP/IPP in consultation with AP/IP Disclose and get RP/IPP endorsement from the AP/IP Compensate and provide other assistance before physical and/or economical displacement Monitor the process

Project Categorization – ESMS ADB ESMS Impact NCRPB Requirement A S1 Significant RP – IPP to ADB for review B S2 Less Significant (S)RP – IPP to ADB for review C S3 No impact NA Each ADB funded project is categorized based on the impacts of the project to the affected population. Significant : >200 DP or 10% productive assets Required Documents: Depending on the project lending modality -

Safeguards Compliance Flowchart Project Categorization Safeguards Document Preparation (EA/IA) RP disclosed to AP and endorsed S1 –S2 subproject RP/IPP submitted for ADB review and approval Upload at ADB website RP Implementation and report submission of RP/IPP implementation to ADB for S1 subproject Civil works starts Submission of Semiannual Monitoring Report and ESMS Annual Independent Audit Report

Information Disclosure – Monitoring - Reporting

Information Disclosure Social Environment draft EIA reports for category A projects (120-day rule) draft EARF before project appraisal final or updated EIA/IEE, environmental monitoring reports (annual/ semiannual/ quarterly) Draft endorsed RP/ IPP and/or RF/IPPF before project appraisal Final endorsed RP/IPP upon completion Updated/new RP/IPP or CAP during project implementation Semiannual monitoring reports

Information Disclosure NCRPB will be required to: (i) Submit to ADB the safeguard documents for disclosure (ii) Provide relevant information, including information from the above documents in a timely manner, in an accessible place and in a form and language(s) understandable to AP and other stakeholders

Monitoring and Reporting NCRPB will: Retain qualified and experienced external experts or NGOs to verify its monitoring information, for Cat. A projects Prepare monitoring reports that describe progress with implementation of the EMP, and corrective actions if any

Monitoring and Reporting Submit to ADB : semiannual reports during construction; quarterly reports for highly complex and sensitive projects annual monitoring report (ESMS) annual independent auditor report (ESMS)

Consultation - Grievance Redress Mechanism – ADB Accountability Mechanism

Consultation & Grievance Redress Mechanism The borrower/client will carry out meaningful consultation with affected people (AP) and other concerned stakeholders

Grievance Redress Mechanism The project to establish a mechanism to receive and facilitate resolution of APs grievance Scaled to the risks and impacts Address AP’s complaints promptly, using a transparent process that is gender responsive and readily accessible to the AP Does not impede access to the country’s judicial or administrative remedies Inform AP about the mechanism

Consultation Meaningful consultation is a process that: begins early and is carried out on an ongoing basis provides timely disclosure of relevant and adequate information accessible to affected people is undertaken in an atmosphere free of intimidation is gender inclusive and responsive, and tailored to the needs of vulnerable groups enables the incorporation of all relevant views

ADB Accountability Mechanism 2012 (1) An independent forum for people adversely affected by ADB-assisted projects where they can: (i) voice their concerns and seek solutions to their problems, and (ii) request a review of alleged noncompliance by ADB with its operational policies and procedures

ADB Accountability Mechanism (2) Who? 2 or more adversely affected people AP authorize representative NGO – Board members How? Write a letter/ email/ fax in any official or national language to: Complaint Receiving Officer at ADB HQ in Manila Any ADB RM office When? Any time during project’s life but no more than 2 years after project closing date