Public Disclosure Authorized E4299

PRO-POOR URBAN REGENERATION PILOT PROJECT

Public Disclosure Authorized

Environmental and Social Management Framework

Draft, August 30, 2013

Public Disclosure Authorized
Public Disclosure Authorized

Lalitpur Sub-Metropolitan City

Lalitpur, Nepal
 LIST OF ACRONYMS

BP Bank Procedure
CBO Community Based Organization
CBS Central Bureau of Statistics
DDC District Development Committee
DPR Detail Project Report
EA Environmental Assessment
EIA Environmental Impact Assessment
EMP Environmental Management Plan
EPA/EPR Environmental Protection Act/Environmental Protection Regulations
ESMF Environmental and Social Management Framework
GoN Government of Nepal
IEE Initial Environmental Examination
ILO International Labor Organization
IP-VCDF Indigenous Peoples-Vulnerable Community Development Framework
IP-VCDP Indigenous Peoples-Vulnerable Community Development Plan
LSMC Lalitpur Sub–metropolitan City
NGO Non-Government Organization
OP Operational Policies
PAP Project Affected Person
PMT Project Management Team
POM Project Operational Manual
PSC Project Support Consultant
PURPPURP Pro Poor Urban Regeneration Pilot
RAP Resettlement Action Plan
VDC Village Development Committee
VDCP Vulnerable Community Development Plan

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 TABLE OF CONTENT
CHAPTER I: INTRODUCTION .......................................................................................................................... 1
1.1 BACKGROUND ......................................................................................................................................................1
1.2 SECTORAL AND INSTITUTIONAL CONTEXT ........................................................................................................2
1.3 PROJECT DESCRIPTION ......................................................................................................................................3
1.3.1 Broader Project Objectives .........................................................................................................3
1.3.2 Project Development Objectives (PDO) .....................................................................................3
1.3.3 Project Beneficiaries ...................................................................................................................3
1.3.4 Project Components ...................................................................................................................4
1.3.4.1 Component 1: Participatory Action Plan for Pro-poor Urban Regeneration........................4
1.3.4.2 Component 2: Grant Facility for Pro-poor Urban Regeneration ..........................................5
1.3.4.3 Component 3: Community Awareness and Local Capacity Building for Pro-poor Urban
Regeneration........................................................................................................................7
1.3.4.4 Component 4: Participatory Monitoring & Evaluation and Knowledge Dissemination,
Project Management and Administration .............................................................................7
1.4 PROJECT INSTITUTIONAL AND IMPLEMENTATION ARRANGEMENT .................................................................8
1.5 TYPE AND NATURE OF CIVIL W ORKS SUPPORTED UNDER PURPPURP ..................................................11
1.6 ACTIVITIES EXCLUDED FROM PURPPURP ...................................................................................................12
1.7 NEED FOR ENVIRONMENT AND SOCIAL MANAGEMENT FRAMEWORK .........................................................12
1.8 PROCESS ADOPTED FOR PREPARING THE ESMF ........................................................................................13
1.9 PURPOSE AND OBJECTIVES OF THE ESMF ...................................................................................................14
1.10 REVISION/MODIFICATION OF THE ESMF ........................................................................................................15
1.11 LIMITATIONS OF THE ESMF .............................................................................................................................15

CHAPTER II: OVERVIEW OF THE PROJECT AREA ..................................................................................... 16

2.1 GEOGRAPHICAL LOCATION ..............................................................................................................................16
2.1.1 Geographical Boundaries .........................................................................................................16
2.1.2 Population .................................................................................................................................17
2.1.2.1 Population Distribution .........................................................................................................17
2.1.2.2 Ward Wise Population of LSMC ..........................................................................................17
2.1.3 Literacy......................................................................................................................................17
2.1.4 Employment ..............................................................................................................................17
2.1.5 Settlement Pattern ....................................................................................................................18
2.1.6 Income ......................................................................................................................................18
2.1.7 Economy ...................................................................................................................................18
2.1.8 Infrastructures ...........................................................................................................................19
2.1.8.1 Water Supply and Sanitation .............................................................................................19
2.1.8.2 Housing Pattern .................................................................................................................19
2.1.8.3 Cultural and Architecturally Important Places in Project Wards ........................................20

CHAPTER III: REGULATORY AND LEGAL FRAMEWORK .......................................................................... 21

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 3.1 KEY APPLICABLE NATIONAL ENVIRONMENTAL LAWS AND REGULATIONS ...........................................21
NATIONAL BUILDING CODE OF NEPAL, 1993(2050 BS) ....................................................................22
3.2 KEY APPLICABLE NATIONAL SOCIAL LAWS AND REGULATIONS ..................................................................24
3.3 APPLICABLE W ORLD BANK POLICIES .............................................................................................................25
3.4 ENVIRONMENTAL ASSESSMENT (OP/BP 4.01) .............................................................................................26
3.5 PHYSICAL CULTURAL RESOURCES (OP/BP 4.11)........................................................................................26
3.6 INDIGENOUS PEOPLE (OP/BP 4.10)...............................................................................................................27
3.7 INVOLUNTARY RESETTLEMENT (OP/BP 4.12) ..............................................................................................28

CHAPTER IV: POTENTIAL ENVIRONMENTAL AND SOCIAL IMPACTS AND THEIR MANAGEMENT
.................................................................................................................................................................................... 30
4.1 LIKELY BENEFICIAL IMPACTS ...........................................................................................................................30
4.2 LIKELY ADVERSE IMPACTS ...............................................................................................................................30
4.2.1 Environmental ...........................................................................................................................30
4.2.2 Social ........................................................................................................................................31
4.3 GENERIC MITIGATION MEASURES FOR EACH IDENTIFIED POTENTIAL IMPACTS ........................................31
4.3.1 Physical Environment ...............................................................................................................32
4.3.2 Biological Environment .............................................................................................................32
4.3.3 Socio-economic,Cultural, and Archaeological Environment ....................................................33

CHAPTER V: ENVIRONMENTAL AND SOCIAL SCREENING AND MANAGEMENT ............................. 35

5.1 ENVIRONMENTAL& SOCIAL SCREENING .........................................................................................................35
5.2 Safeguard Categorization of Municipal Investments and Sub-grants ......................................35
5.2.1 CategoryImunicipal investments and sub-grant interventions .................................................36
5.2.2 Category II municipal investments and sub-grant interventions .............................................37
5.2.3 Category III municipal investments and sub-grant interventions ............................................38
5.2.4 The Roles and Responsibilities of the World Bank ..................................................................39
5.3 MANAGEMENT OF SOCIAL SAFEGUARDS........................................................................................................39
5.3.1 Social Screening (Including Resettlement Policy Framework, Indigenous People (IP) and
Vulnerable Community Development Plan, and Gender Development Framework) ..............39
5.3.2 Indigenous Peoples and Vulnerable Communities Development Framework(IP-VCDF)........43
5.3.2.1 Relevant Policies on Indigenous People and other Vulnerable Communities ..................43
5.3.2.2 Screening and Categorization of Impacts on IPs and VCs ...............................................44
5.3.2.3 Specific Measures to be followed while dealing with Vulnerable Groups .........................45
5.3.2.4 Framework for Developing Gender Development Framework ..........................................46
5.3.2.4.1 Gender Development Framework ................................................................................46
5.4 PROCESS FOR MANAGING ENVIRONMENTAL AND SOCIAL IMPACTS ...........................................................48

CHAPTER VI: INFORMATION AND CONSULTATION FRAMEWORK ....................................................... 51

6.1 INFORMATION AND CONSULTATION FRAMEWORK FOR MUNICIPAL INVESTMENTS AND SUB-GRANTS OF
PURPPURP .....................................................................................................................................................51
6.1.1 Identify and Analyze Potential Stakeholders to Understand their Interest and Needs ...........51

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 6.1.2 Engage Stakeholders Systematically Throughout the Design and Implementation Stages ....51
6.1.3 Inform Stakeholders and Accountability Mechanism ...............................................................52
6.2 PRESENT STATUS OF CONSULTATIONS COMPLETED AT PURPPURP ......................................................52
6.2.1 Consultations during Prefeasibility Study and Preparation of ESMF .......................................52
6.2.2 Modes of Future Consultations.................................................................................................52
6.3 INFORMATION DISCLOSURE AND DISSEMINATION .........................................................................................53

CHAPTER VII: GRIEVANCE REDRESS MECHANISM .................................................................................. 54

CHAPTER VIII: MONITORING AND EVALUATION ........................................................................................ 55

8.1 MONITORING AND EVALUATION .......................................................................................................................55

CHAPTER IX: CAPACITY BUILDING................................................................................................................. 56

9.1 TRAINING ............................................................................................................................................................56
9.1.1 For Environment and Social Officer of LSMC ..........................................................................56
9.1.2 For Municipal Staff ....................................................................................................................56
9.2 TRAINING ON PREPARING COMMUNICATION STRATEGIES ...........................................................................57

ANNEXES:
Annex 1: Steps and Requirements for IEE Studies and PURP
Annex 2: Project Environmental Management Plan (EMP)
Annex 3: Format for Social Impact Assessment
Annex 4: Involuntary Resettlement Impact Screening & Categorization Form
Annex 5: Environmental Impact Screening & Categorization Form
Annex 6: IPs & Vulnerable Groups Impact Screening & Categorization Form
Annex 7: Outline structure of an IP – Vulnerable Community Development Plan (IP/VDCP)
Annex 8: Public Ward Level Consultations Attendance
Annex 9: Public Ward Level Consultations Findings
Annex 10: Pictorial highlights of ward level interactions

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CHAPTER I: INTRODUCTION

1.1 Background
Nepal is among the poorest countries in the world, with per capita GDP of US$619 (2011 prices) and an
estimated 25 percent of Nepalese falling below the international poverty line (US$1.25 per day). The
country is caught in a cycle of political instability, poverty and economic stagnation, which has resulted in
a mass exodus of the Nepalese productive workforce out of the country. Nepal is also one of the fastest
urbanizing countries in South Asia. The Kathmandu Valley metropolitan region, with a population growth
of about 4 percent per year, is the largest gravity center for migration in Nepal. Increasing numbers of
people are moving to the Kathmandu Valley, where economic opportunities are greatest. The
sustainable development and management of the Valley is thus of strategic importance for unlocking
economic growth and reducing poverty in Nepal. The Kathmandu Valley is also the most important
heritage destination and the gateway for tourism in Nepal. The country’s most widely recognized cultural
asset is the UNESCO Kathmandu Valley World Heritage site, which is composed of seven Protected
Monument Zones, including the Durbar Squares1 situated in the historic cores of the three main cities of
the Kathmandu Valley (Lalitpur, Bhaktapur and Kathmandu).

Lalitpur City 2 , popularly known as Patan, is one of the main centers of cultural heritage and craft
production in Nepal, and the second largest municipality in the Kathmandu Valley, with a population of
about 227,000 according to the 2011 population census data. Lalitpur City is the oldest of the three main
cities in the valley. Its Durbar Square consists of an extensive number of palaces, temples, shrines,
monuments and daily activities that are a draw for tourists. In 2009-10, 125,000 tourists, equivalent to 21
percent of Nepal’s international tourists, visited the Durbar Square in Lalitpur City. 3 The city’s living
culture and handicrafts are also primary elements of Nepal’s national pride and identity. Throughout the
city there are craft workshops and businesses that have been passed down through many generations
along with the master-level skills that give Lalitpur its reputation as the “City of Arts”. Nineteen percent of
Lalitpur City’s residents report that they work in crafts and related trades.4 The city is especially known
for over 100 residence-based workshops of metal workers in the neighborhood of Woku Bahal. They
produce silver jewelry, bronze and copper statues of Hindu and Buddhist deities and architectural details
for traditional buildings.5 In addition, Lalitpur City is famous for its traditional music, dance, drama and
festivals with their colorful costumes, decorated chariots, special foods and blessing ceremonies.

Rapid urbanization, combined with inadequate development control and management, have led to a
deterioration of the urban fabric in the Kathmandu Valley, which is manifested in low rates of job
creation, social segregation and a tangible erosion of cultural identity; increased vulnerability to natural
disasters and an increase in slums and squatter settlements. With the notable exception of Bhaktapur
municipality, the public cultural and historic assets of the Kathmandu Valley have suffered considerable
damage and are losing cultural value, religious significance, and tourism potential. Lalitpur City has not
been spared from these challenges, although its historic core is better maintained than the historic core
of Kathmandu City. Many of the housing units in Lalitpur City now bear a dilapidated look, and the
1
Durbar Squares are the plazas opposite old royal palaces in Nepal.
2
Lalitpur Sub-metropolitan City is the legal name of the municipality.
3
Estimate based on revenue section of the municipality.
4
This is the second largest occupational group in the city, surpassed only by service and sales workers, accounting for 22
percent of local jobs, based on 2001 population census data.
5
See “Strengthening Patan as a Crafts Town”. Planning Studio III. Department of Architecture and Urban Planning, IOE,
Pulchowk Campus. 2012.

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neighborhoods surrounding the Durbar Square lack basic physical facilities, including water supply and
sanitation. Lalitpur’s residents face the threat of natural disasters, due to their location in a high-risk
seismic zone.

As in the Kathmandu Valley as a whole, poverty is multidimensional in Lalitpur City and includes social
segregation, discrimination, lack of voice, vulnerability to shocks and poor access to basic infrastructure
and services, such as water and sanitation, health care and education. The poor and vulnerable include
not only the income poor but also low caste and some indigenous communities, ethnic minorities, the
disabled, and women, especially those who are single heads of households. These dimensions of
poverty reinforce disempowerment and exclusion from income generating opportunities. Cultural
industries, such as tourism and handicrafts, still provide significant, but diminishing, livelihood
opportunities in the valley through, e.g., accommodations and handicraft sales. Many of the poorest are
involved in the production of handicrafts and artisans face serious challenges in sustaining their
livelihoods.

1.2 Sectoral and Institutional Context

Reversing the decline of distressed neighborhoods in the historic city cores of the Kathmandu Valley
would require an integrated approach to urban regeneration that involves support for people, places,
businesses and institutions. In the Kathmandu Valley, new development needs to be combined with the
regeneration of the historic city cores to upgrade physical facilities, improve housing and living
conditions, and promote economic revitalization in distressed neighborhoods, while protecting the urban
fabric of historic, cultural and architectural elements. A sustainable urban regeneration approach would
be based on these four pillars: (a) community strengthening and mobilization (people); (b) infrastructure
upgrading, cultural heritage conservation and disaster risk management (places); (c) job creation and
income generation opportunities (businesses); and (d) a successful partnership between the
communities, the local government and the private sector (institutions).

The project would pilot a pro-poor, community-driven approach for the urban regeneration of part of the
historic core of Lalitpur City based on a proper understanding of the local population, social dynamics
and economic conditions. The grant would support pro-poor regeneration activities in distressed
neighborhoods in the historic core of Lalitpur City aiming at: (a) empowering the poorest and most
vulnerable communities, community-based organizations (CBOs) such as the guthis and local NGOs
through community-driven activities; (b) upgrading local infrastructure, conserving the local heritage and
reducing vulnerability to disasters; (c) creating jobs for the poor through cultural industries; and (d)
improving the lines of communication between the municipal government and the poorest and most
vulnerable communities, building local capacity and raising community awareness.

To pilot the new approach, the project would fund a grant facility to improve local services and public
spaces, promote local heritage and develop income-generating activities linked to cultural industries in
distressed neighborhoods of the historic core of Lalitpur City. Lalitpur’s city administration has
demonstrated a strong commitment to poverty alleviation and to the preservation of the city’s built and
living heritage. Lalitpur was the first city in Nepal to undertake a comprehensive poverty profile in 1999
as part of UN-Habitat’s Urban Management Program. The poverty profile led to the creation of an Urban
Poverty Fund, into which the city has contributed through a budgetary allocation. The city collects
entrance fees to the Durbar Square, which are used for its maintenance and offers monetary incentives
to encourage the rehabilitation of private heritage buildings. The city has also supported crafts and living
culture through the development of a heritage trail to draw tourists into the neighborhoods and special

2
crafts markets to eliminate the middlemen between producers and buyers. However, a lack of city
capacity and resources has limited these activities and their impact on poverty.

1.3 Project Description

1.3.1 Broader Project Objectives
The project contributes to the high-level objective of reducing poverty and vulnerability in the historic core
of Lalitpur City by improving local services, conserving local heritage and culture, and increasing access
to income-generating opportunities in cultural industries.

1.3.2 Project Development Objectives (PDO)

The PDO is to: (a) contribute to improving the living conditions of poor and vulnerable households in
selected wards of the historic core of Lalitpur City by piloting urban regeneration activities; and (b)
demonstrate the feasibility of an integrated urban regeneration approach to decision-makers in the
Kathmandu Valley.

1.3.3 Project Beneficiaries

The primary beneficiaries are: (a) those individuals directly benefiting from the urban regeneration
initiatives, the awareness raising activities and capacity building programs carried out as part of the pilot;
as well as (b) the municipal officials who will be trained to implement an integrated urban regeneration
approach. The poor and vulnerable, who are the “target beneficiaries” of the pilot, include the income
poor, low caste and indigenous communities, ethnic minorities, the disabled, and women, especially
those who are single heads of households. Some 3,000 are expected to benefit from the urban
regeneration activities.

The project area would include selected neighborhoods in the buffer zone surrounding the Durbar
Square Protected Monument Zone, outside the World Heritage Site (WHS). The project area covers 4
wards. The boundaries of the buffer zone and the four wards that the project covers (i.e. wards 16, 18,
21, and 22) are presented in the map below.

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1.3.4 Project Components
The project would have the following four components:

1.3.4.1 Component 1: Participatory Action Plan for Pro-poor Urban Regeneration

This component would support the preparation of a participatory action plan for pro-poor urban
regeneration in selected wards in the historic core of Lalitpur City. Activities would include:

(i) Social assessment. The social assessment would include a baseline livelihood and needs
assessment to understand the livelihood strategies of households belonging to different income,
gender, social, and ethnicity and caste groups in the project area. The assessment would inform the
identification of the target beneficiaries for the urban regeneration activities. It would also identify
stakeholders, interests, and potential for conflict so as to better ensure the success of the project.

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(ii) Market assessment. The market analysis would: (a) examine the current state of cultural industry
(handicraft and cultural tourism) clusters in Lalitpur City; (b) identify potential demand and market
niches for different cultural heritage sites restoration and related cultural tourism services and
handicrafts; (c) identify gaps and necessary measures for improving local handicrafts products and
cultural tourism services; (d) develop a marketing strategy to increase visibility of the project site
(including possible innovation, such as ICT-based tools, for site interpretation); and (e) propose a
series of practical measures to enhance the flow of benefits to the poor and vulnerable.

(iii) Site management framework. Activities for the preparation of the site management framework
would include: (a) mapping and inventory of all physical cultural heritage assets and notable
intangible heritage (e.g., festivals, handicraft production), and stocktaking of past projects and
activities in the project area; (b) review of the existing management plan for the Durbar Square/buffer
zone and municipal plans; (c) stakeholder analysis and clarification of the mandates, roles and
responsibilities of various stakeholders for the maintenance of the heritage assets.

(iv) Participatory action plan for pro-poor urban regeneration. The participatory action plan would
build on the results of the social and market assessments and site management framework to: (a)
develop a shared vision for the urban regeneration of the project area; (b) identify the priorities for
the urban regeneration activities and the broad areas for which specific calls for proposals would be
issued, including possible earmarking of funds for specific activities (e.g., promotion of intangible
heritage) which may otherwise be neglected; (c) define eligibility criteria for proposals under the grant
facility as well as possible target criteria for specific vulnerable groups (e.g., disabled people,
indigenous groups, dalits). The participatory action plan, and subsequent annual updates, will be
jointly endorsed by the municipality and ward representatives.

The participatory planning would aim at empowering local communities and building coalitions of
stakeholders (e.g., municipal agencies, NGOs, small businesses) and organize them into a cohesive
group for the implementation of the urban regeneration activities. Emphasis would be placed on
establishing and strengthening representation and voice mechanisms for the poor and vulnerable to
facilitate their participation in decision-making. Since the project plans to work with local communities,
social mobilization has been embedded at the core of the project and in the project design. Project
activities emphasize local community involvement in the promotion of cultural tourism to spread its socio-
economic benefits, promote income diversification and alleviate poverty. One of the primary goals of the
pilot is to build the capacity and commitment of the municipality to partner with local community groups
and the business community to implement regeneration activities directly benefiting the poorest and most
vulnerable groups. Building such capacity would significantly contribute to the sustainability of the
results. The involvement of the municipality as the implementing agency for the pilot, the matching
contribution requirement from all the stakeholders participating in urban regeneration activities and the
capacity building for municipal staff are important design features for the sustainability of the outcomes,
beyond the implementation period of the grant. The pilot project would provide capacity building to the
municipality to institutionalize the integrated urban regeneration approach.

1.3.4.2 Component 2: Grant Facility for Pro-poor Urban Regeneration

This component would fund a demand-driven, competitive matching grant facility for pro-poor urban
regeneration activities in the project area with the following three windows: Pro-poor Municipal
Investments and Initiatives Grant Window, Pro-poor Community-based Initiatives Grant Window and Pro-

5
poor Business Development Grant Window. The implementation arrangements of the facility-funded
activities have been formalized through an Operational Manual.

(i) Pro-poor Municipal Investments and Initiatives Grant Window. The objective of the grant window
is to support small works implemented by the municipality, such as improvements in local
infrastructure and basic services and heritage conservation, to enhance the living conditions of the
poorest and most vulnerable communities in the project area. The municipality would be required to
provide matching contributions of at least 10 percent. Possible initiatives include stone paving and
improvements in solid waste collection, renovation of traditional water sources known as hitis (stone
spouts) and the maintenance and upgrading of public spaces within a community. All civil works
financed under this window will be constructed with seismic resilience and criteria for site selection
will take into consideration flood risk.

(ii) Pro-poor Community-based Initiatives Grant Window. The objective of the grant window is to
support community-driven initiatives for heritage conservation and the enhancement of cultural
identity, social cohesion and acceptance of cultural diversity. As is standard procedure throughout
Nepal, community groups would contribute a minimum of 10 percent of project costs in cash or in
kind. The grant facility could fund community-driven initiatives that engage neighborhood groups in
protecting their own heritage through participatory inventories of their local assets; facilitate
community-based maintenance and conservation initiatives (e.g., communal courtyards and local
shrines); support revitalization of disappearing celebrations and ceremonies; and create signage and
interpret traditional festival routes paying particular attention to benefits for poor neighborhoods along
the route. Given the high disaster risk in the built environment, a seismic risk awareness campaign
will be incorporated into the community-driven initiatives.

(iii) Pro-poor Business Development Grant Window: The objective of the grant window is to support
initiatives by eligible small businesses, NGOs, cooperatives and community-based organizations
aimed at involving the poorest and most vulnerable in the development of traditional handicrafts and
cultural tourism related products and services. The sub-grant recipients would be required to provide
matching contributions of at least10 percent. The grant facility could fund sub grants that, e.g.,:
provide training and skill development for poor artisans to improve technical know-how and the use
of time-saving tools and techniques; establish a handicraft exhibition and sales promotion facility
accessible to poor craftsmen to eliminate middlemen; develop a cultural tour of artisan workshops
that includes poor handicraft producers; develop new fee-based cultural activities that can be
provided by poor residents (e.g., storytelling, traditional cuisine and special interest tours such as
neighborhood temples and celebrations); provide vocational training for youth for innovative site
interpretation.

The community-based and business development activities would be selected competitively and
based on demand in accordance with grant selection and eligibility criteria defined as part of the
participatory planning process to maximize the impact in terms of community development and
poverty reduction. The proposals would be selected based on demonstrated direct benefits to the
target poor and vulnerable groups and alignment with the priorities identified as part of the
participatory planning process. The call for proposals will specify the eligibility criteria for the
submission of the proposals.

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1.3.4.3 Component 3: Community Awareness and Local Capacity Building for Pro-
poor Urban Regeneration.
This component would fund community awareness-raising initiatives and local capacity building to
support the effective implementation of the urban regeneration activities and the sustainability of the
outcomes. Programs would include: community awareness and strengthening and municipal capacity
building.

(i) Community Awareness and Strengthening. This subcomponent would fund communication
programs, workshops, and training to: (a) sensitize poor and vulnerable residents on the value of
their heritage and its relevance to their wellbeing, including opportunities for sustainable pro-poor
revenue generating activities; (b) raise community awareness and preparedness for disaster risk
management in order to help residents understand the risk and take ex-ante measures to increase
their resilience; and (c) provide specialized technical support and expertise (in areas such as tourism
promotion, product development and marketing, cultural heritage renovation) to grant proponents as
required for the implementation of initiatives under the Grant Windows.

(ii) Municipal Capacity Building. This subcomponent would include training, seminars, workshops,
knowledge exchanges and technical assistance to enhance the capacity of municipal staff to: (a)
conserve, manage and promote the city’s cultural heritage as an asset for pro-poor economic
development; (b) effectively work with community groups, especially those representing the poor and
vulnerable, on urban regeneration activities; (c) directly foster access of the poor and vulnerable to
the socio-economic benefits of cultural industries; (d) engage in disaster resilient development and
construction techniques to protect future income streams; and (e) institutionalize the integrated urban
regeneration approach to ensure continuity of the activities after project closure. A needs
assessment would be carried our during project preparation to map ongoing municipal capacity
building activities and identify gaps which would be filled by the project.

1.3.4.4 Component 4: Participatory Monitoring & Evaluation and Knowledge

Dissemination, Project Management and Administration
This component would support technical assistance and training for Monitoring & Evaluation (M&E),
knowledge dissemination, project management and administration.

(i) Participatory M&E and Knowledge Dissemination. This subcomponent would support: (a) the
development of a Management Information System (MIS) for the grant facility, and a program of
participatory community-based M&E to enable the tracking of socio-economic benefits accruing to
the local residents and the target poor and vulnerable groups from the project activities and assess
the performance of the grant facility in meeting its objectives and adhering to its targeting and
funding criteria; (b) household and community surveys at project start and completion to collect data
for the grant’s monitoring system, including PDO indicators data and disaggregated data on target
beneficiaries; and (c) the dissemination of lessons learned from the implementation of the grant to
promote the scaling up of the pilot through similar city-level initiatives (through workshops,
media/social media events).

(ii) Project Management and Administration. This subcomponent would cover the incremental
operating costs and the costs of strengthening the project management capacity of municipal staff
and local communities.6
6
Excluding salaries of government staff.

7
1.4 Project Institutional and Implementation Arrangement
A Steering Committee will be established to oversee implementation of the pilot, and support the
municipality in coordinating the activities with central agencies and the private sector. The structure of
the Steering Committee is provided in the Operation Manual.

A Project Management Team (PMT) will be established in the municipality for the implementation of the
project activities. With support from the Project Support Consultants (PSC), the PMT will have overall
responsibility for the project implementation as per the procedures specified in the Operational Manual.
The PMT, with support from the PSC, will assist in the screening of the sub-grants as per ESMF and also
be responsible for implementation of the municipal investments under the Pro-poor Municipal
Investments and Initiatives Grant Window.

Figure 1 illustrates the organizational structure for the urban regeneration pilot, and Table 1 further
describes the roles and responsibilities of the various stakeholders.

Figure 1: Project Organizational Chart

8
Table 1. Project Roles and Responsibilities
Stakeholder Composition
Steering The Steering Committee is chaired by the Secretary
Committee of MoUD and includes the Joint Secretary of
MoFALD, the Joint Secretary, MoUD, the Director
General of DUDBC, the CEO of LSMC, one
representative from the Kathmandu Valley
Development Authority (KVDA), the Nepal Tourism
Board, the Department of Archaeology, the
Handicrafts Association, the Federation of Nepalese
Chambers of Commerce (FNCCI), UNESCO and an
NGO with expertise on disaster risk management to
be selected by the Steering Committee during the
first meeting. The KVDA acts as the Secretariat for
the Steering Committee.
Municipal The MCC is chaired by the CEO of LSMC and
Coordination includes the PMT Project Coordinator, the PMT
Committee Project Manager, the Ward Secretaries of the 4
(MCC) selected wards, one representative from the KVDA
(as the Steering Committee’s Secretariat), one
representative from the District Development
Committee, one representative from the FNCCI, and
one representative from the poor and vulnerable
communities in the project areas (selected by the
MCC during its first meeting).
Roles and Responsibilities
The role of the Steering Committee is to provide guidance and oversight to the urban
regeneration pilot project. The Steering Committee:
a) Meets regularly to review progress and ensure coordination among central
agencies and the LSMC
b) Reviews the social needs assessment and market analysis carried out as part of
the participatory planning under Component 1.
c) Provides “no objection” for the Site Management Plan and Participatory Action Plan
d) Plans and facilitates learning activities aimed at decision-makers throughout the
Kathmandu Valley to raise awareness of the urban regeneration approach,
disseminate lessons learned and make best use of the demonstration effect of the
pilot project.
The Steering Committee meets 4 times a year (every 3 months) and as requested by the
CEO on the recommendation of the PMT to address special concerns, or to meet the
requirement to approve the Action Plan.
The MCC oversees coordination and implementation of the project, and supports the PMT
in coordinating the activities with central agencies and the private sector. The MCC meets
once a month and as requested by the CEO on the recommendation of the PMT.
9
Project The PMT consists of 8 members including a Project
Management Director (CEO of LSMC [with authority to delegate]),
Team (PMT) Project Coordinator, Project Manager (assigned full-
time to the project), and a team of five people in the
areas of cultural heritage conservation, social
welfare, financial management, engineering and
environmental protection and procurement.
Project The PSC is an autonomous third party, such as an
Support NGO or CBO or a private consulting firm or individual
Consultant consultants, with experience in project management,
(PSC) community mobilization, participatory planning. The
PSC will include a DRM expert, a cultural heritage
expert and safeguard experts.
Approval The Approval Committee is chaired by a highly
Committee respected independent expert and shall have 4
additional members: representatives of the FNCCI,
KVDA, District Treasury Control Office and the
Monument Conservation Office of Lalitpur.
The chair is appointed by the CEO of Lalitpur and
shall have at least 20 years of relevant experience,
and at least a Master’s degree in a relevant discipline
(e.g., planning, economics, cultural heritage)
Ward The ward secretaries in the 4 wards comprising the
Secretaries project area.
The Lalitpur The Municipal Board or their designated committee
Municipal
Board
The PMT is the core team established within the LSMC for overall development,
implementation, management, coordination, and reporting on the project. The PMT as
implementing agency is responsible for all activities under the project, but they will be
assisted by a Project Support Consultant (PSC). The full staff of the PMT meets at least
once a week with the PSC team for updates and review of implementation progress.
More detail on the roles and responsibilities of the PMT are found under the in-depth
description of each component in Chapters 4, 5, 6, and 7.
The CEO is a joint signatory (with the Senior Accounts Officer) on the project’s Designated
Account (DA).
The PSC is contracted by the PMT and is responsible for supporting the PMT (as per the
ToR attached to this Operations Manual) to carry out all project activities including the day-
to-day administration of the grant facility. See Chapters 4, 5, 6 and 7 for more detail on the
role of the PSC.
The Approval Committee shall review and approve sub-grant proposals based on
information provided by the PMT/PSC for the Community-based Initiatives and the Business
Development Initiatives Grant Windows, based on procedures and criteria agreed in
Chapter 5. The committee also prepares a decision note with justification of the sub-grant
selections and ranking and sends it to the World Bank for “no objection”.
The ward secretariats will support the PMT/PSC in their tasks. Activities to be undertaken
as part of ward duties are supporting the PMT/PSC in disseminating project information and
outreach material, facilitating the participatory planning process, organizing meetings to
support sub-grant applicants develop feasible initiatives and sub-grant ideas, facilitating
proposal development and coordination, liaising between the community and the PMT,
requesting specialized technical support to the PSC when needed and identifying problems
in implementation.
The Municipal Board approves the Participatory Action Plan, gives final approval of the
selected sub-grant proposals and sub-grant completion reports.
10
Institutional arrangements for technical review of sub-grants.

The technical soundness and cost effectiveness of the urban regeneration activities funded by the grant
facility would be ensured by mobilizing experts through the Project Support Consultants (PSC) to review
proposals and their detailed plans on an as-needed basis. A cultural heritage specialist would be
retained as part of the PSC team over the course of implementation to review the planned municipal
investments and the sub-grant proposals with impact on tangible and intangible heritage, in order to
maximize benefits and identify any possible negative impacts of the pilot activities on heritage. Examples
include: inappropriate materials, design or installation of drainage for traditional streets (tangible
heritage); inauthentic representations of historic celebrations or traditional dress in a tourism activity
(intangible heritage). A private sector conservation architect and/or engineer, as required, would review
architectural and engineering plans for physical investments in construction or repair of buildings or
infrastructure. The expert team would be integral part of the PSC and would work with the municipality to
build expertise and sensitivity to issues in small business development, heritage conservation and
disaster risk reduction and mitigation. Furthermore, an independent expert with at least 20 years of
relevant work experience would be appointed as the chair person for the Appraisal Committee which
would be responsible for the evaluation and award of the sub-grant proposals based on the technical
review carried out by the PMT with support from the PSC expert team. 7

A panel of DRM experts would be retained as part of the PSC to carry out a technical review of the plans
for the retrofitting of heritage buildings, and ensure compliance with building by-laws and codes.
Although the National Building Code does not include guidelines for the retrofitting of historic buildings
for seismic resilience, a number of studies have been carried out on heritage conservation and disaster
risk reduction and mitigation in Nepal. This includes a recently completed study by Institute of Disaster
Mitigation for Urban Cultural Heritage, Ritsumeikan University and Tribhuvan University of Nepal on the
assessment of the structural safety of traditional buildings and the development of a comprehensive
disaster risk mitigation strategy for the historic core of Lalitpur City, including the strengthening of
courtyard exits, which are important evacuation routes. Work over the last three years has produced risk
mitigation proposals on structural reinforcement of traditional buildings and passageways, evacuation
preparedness and post-disaster responses. The project would provide the opportunity to pilot the main
recommendations of the study if retrofitting of traditional community buildings and heritage buildings is
identified as a priority in the project area. Furthermore, the National Society for Earthquake Technology
(NSET) will be part of the Steering Committee for the pilot.

1.5 Type and Nature of Civil Works Supported Under PURP

This project will fund small civil works in wards of 16, 18, 21, and 22 of LSMC. Such small civil works will
support the regeneration of the project area. In this context, some of the activities proposed by the
participants during ward level and LSMC level consultations are as follows:

 Maintenance and renovation of communal courtyards and local shrines

 Construction of small pavements in some areas of recipient wards
 Stone paving in inner roads, in places of cultural and archeological importance

7
For more information, see relevant paragraphs under technical appraisal in the project paper (para 43).

11
 Improvements in solid waste collection system
 Conservation of heritage homes
 Renovation of community buildings
 Rehabilitation of stone spouts
 Renovation and rehabilitation of wells
 Greenery improvements
 Own heritage through participatory inventories of their local assets
 Facilitate community based installation of solar street lights
 Construction and maintenance of public toilets
 Improvement of traditional festival routes paying particular attention to benefits for poor
neighborhoods along the routes
 Rehabilitation of ponds
 Small infrastructure works that enable socio-economic benefits to accrue to the local residents and
target poor and vulnerable groups.

The maximum allocation for works under PURP is USD 820,000 over a period of four years. The above
list is indicative of the possible civil works that could be carried out under PURP based on the outcomes
of initial stakeholder consultations. Given that the activities are demand-driven, the works will be
identified through the planning process for the municipal investments under the Pro-poor Municipal
Investments and Initiatives Grant Window and through the competitive selection process for the
investments under the Pro-poor Community-based Initiatives and Business Development Grant
Windows.

1.6 Activities Excluded from PURP

The following lists the municipal investments and sub-grant activities that cannot be supported under the
PURP.

 Any municipal investment and sub-grant activity lying within the protected area/UNESCO declared
heritage site;
 Any municipal investment and sub-grant requiring Environmental Impact Assessment (EIA) which will
be known after screening;
 Any municipal investment and sub-grant activity that requires the permanent relocation of
households or involuntary (permanent or temporary) acquisition of land and property;8
 Any municipal investment and sub-grant activity that requires use of hazardous materials in
manufacturing handicraft items, like use of toxic chemicals in metal products.9

1.7 Need for Environment and Social Management Framework

Although the general thrust and broad project interventions are well understood as outlined above, the
specific project activities are yet to be defined. Thus, the precise nature and scale of impacts can be only
determined once the selection of proposals under the various grant windows have been completed.

8
Land acquisition costs cannot be funded with JSDF.
9
Hazardous material includes any material that represents a risk to human health, property, or the environment due to
their physical or chemical or biological characteristics. Potential hazardous materials in this project may include corrosive
substances, toxic materials, flammable gases, acids/battery, cleaning fluids, rust remover, and oxidizing substances.
These are likely to be used in metal crafts such in metal casting, grinding and polishing, etc. Typical issues of concern
include lack of personnel protective equipment use, chemical burns and haphazard disposal of wastes with potential risk
of environmental pollution.

12
Since specific demand-driven urban regeneration activities will only be identified in the course of project
implementation, a mechanism for screening and assessing possible adverse short-term environmental
and social impacts during the municipal investments and sub-grant preparation is required. In this
context, a safeguard framework document is needed to ‘guide’ the planning, design and construction
elements of the project activities. Such a guidance document or a framework would help in integrating
and harmonizing the environment and social management principles at the various stages of project
preparation and execution. In this context, this Environment and Social Management Framework (ESMF)
has been prepared for the PURP.

This ESMF forms part of the comprehensive environmental and social management approach that has
been adopted for addressing the potential environmental and social impacts from PURP, even when
these are considered minor in nature. This ESMF defines: (a) the approach for identifying the
environmental and social issues associated with the PURPP activities; (b) the requirements for
conducting environmental and social screening and environment and social assessment studies; and (c)
measures to prevent, mitigate and manage adverse impacts and enhance positive ones.

Given that specific demand-driven urban regeneration activities will only be identified in the course of
project implementation, a mechanism for screening and assessing possible negative short-term
environmental and social impacts as well as preparing mitigation plans will be developed during project
preparation. This ESMF includes an exclusion list (presented in Section 1.6) as well as simplified
screening checklists (Annexes 4-6), which will be used to determine what types of environmental and
social assessment may be required for the proposed initiatives. The ESMF is thus a framework providing
guidelines that require being operationalized through Environmental Management Plans/Social Action
Plans (EMP/SAP) that will be prepared for specific initiatives, if required. A resettlement policy framework
is also included describing mechanisms for addressing the possible temporary disruption of informal
sources of income (e.g., temporary displacement of informal vendors), and temporary restrictions on
access to facilities while the construction work is ongoing in the project area. Further, it also contains an
Indigenous People-Vulnerable Community Development Framework (IP-VCDF), a gender development
framework, and capacity building measures and a monitoring mechanism. The ESMF also specifies
norms and procedures for the conservation and restoration of historic buildings and for dealing with
chance finds during small works.

1.8 Process Adopted for Preparing the ESMF

The process adopted for the preparation of this ESMF includes: review of safeguard policies of World
Bank, relevant environmental and social policies, acts, regulations and guidelines of the Government of
Nepal (GoN), and interactions and consultations with all concerned stakeholders. Therefore, this ESMF
is primarily based on the reviews of available relevant literatures and consultations with municipal level
and project level stakeholders.

The provisions of Nepal’s Environmental Protection Act (EPA)/ Environmental Protection Rules (EPR)
related to heritage sites have been reviewed and the Department of Archaeology’s guidelines and
specifications internalized. Accordingly, the ESMF specifies norms and procedures for the conservation
and restoration of historic buildings and for dealing with chance finds during small civil works. The
conservation and restoration of historic buildings will use traditional materials and construction
techniques as per the specifications of the Department of Archeology. The municipality will develop a
protocol for use by the construction contractors and/or local communities while conducting any
excavation work, to ensure that any chance finds are recognized and measures are taken for their

13
protection and conservation. Part of this protocol will be that when there are chance finds of
archaeological material, all excavation work at the site shall stop until the Department of Archeology can
determine if the site needs to be documented or scientifically excavated before works continue. The
protocols and protective measures will be included in the EMPs that will be prepared for specific
initiatives, with a focus on consultations and participation of the local stakeholders.

1.9 Purpose and Objectives of the ESMF

This ESMF seeks to:

1. Establish clear procedures and methodologies for screening, reviewing and managing
environmental and social safeguards for the municipal investments and sub-grants to be financed
under the Project.
2. Consolidate and facilitate understanding of all essential policies and regulations of the GoN as well
as the World Bank’s environmental and social safeguards regime that are applicable to the Project
3. Provide practical guidance on the implementation of the environmental and social management
measures.
4. Specify norms and procedures for the conservation and restoration of historic buildings and for
dealing with chance finds during small works.
5. Specify institutional arrangements, including appropriate roles and responsibilities for managing,
reporting and monitoring environmental and social concerns of the municipal investments and sub-
grants.
6. Provide a framework for consultation and information disclosure.
7. Determine the other institutional requirements, including those related to training and capacity
building, needed to successfully implement the provisions of the ESMF.

The application and implementation of this ESMF therefore, will:

1. Support the integration of environmental aspects into the decision making process of all stages
related to planning, design, execution, operation and maintenance of municipal investments/sub-
grants, by identifying, avoiding and/or minimizing adverse social and environmental impacts early-
on in the project cycle.
2. Minimize environmental degradation to the extent possible resulting from either individual municipal
investments/sub grants or through indirect, induced and cumulative effects of project activities.
3. Enhance the positive/sustainable environmental and social outcomes through improved/appropriate
planning, design and implementation of sub-activities/sub-components.
4. Consider the level of environmental and social risk of each type of investments in allocating time
and resources to be dedicated for stakeholder consultation.
5. Build the capacity of the LSMC to take-up and coordinate responsibilities related to the application
and implementation of the ESMF, including the preparation of the municipal investment/sub-grant
specific Environmental Management Plans/Social Action Plans (EMP/SAP), if required.
6. Provide guidelines and procedures for further consultations during project implementation, in
particular in defining and designing sub-grants and specific works.
7. Provide a systematic guidance to address potential risks and to enhance quality, targeting, and
benefits to the wards/communities, especially the vulnerable groups as defined in the project.
8. Ensure that those stakeholders, irrespective of whether they benefit from or are adversely affected
by the project interventions, are well informed and are able participate in the decision-making
process.

14
9. Support compliance with applicable legal/regulatory requirements of GoN as well as with the
requirements set forth in the relevant Bank policies.
10. Protect human health.
11. Minimize adverse impacts on cultural property.

Costs of implementing the ESMF is now known ex ante given that the municipal investments/sub-grants
are demand-driven. The types and costs of safeguard mitigation measures costs will only be known after
preparation of the required municipal investment/sub-grant specific Environmental Management
Plans/Social Action Plans (EMP/SAP). The technical assistance and training costs are estimated of the
order of US$ 150,000, comprising the costs of hiring of safeguard experts as part of the PSC and the
training requirements.

1.10 Revision/Modification of the ESMF

This ESMF will be an ‘up-to-date’ or ‘live document’ enabling revision, when and where necessary.
Unexpected situations and/or changes in the project or components design would therefore be assessed
and appropriate management measures will be incorporated by updating this ESMF. Such revisions will
also cover and update any change/modification introduced in the legal/regulatory regime of the country.
Also, based on the experience of application and implementation of this framework, the provisions and
procedures would be updated, as appropriate, in agreement with the World Bank and the PMT.

1.11 Limitations of the ESMF

This ESMF has been developed in line with World Bank’s Operational Policies (OPs) and is based on
GoN laws and regulations, as applicable at the time of preparation of this document. Any proposed
modifications in the laws, regulations or guidelines that were notified as ‘draft’ at the time of preparation
of this document have not been considered.

15
 CHAPTER II: OVERVIEW OF THE PROJECT AREA

2.1 Geographical Location

LSMC is situated in the southeast part of the Kathmandu valley which is located between the latitudes
27o 32' 13" and 27o 49' 10" North and longitudes 85o 11' 31" and 85o 31' 38" East. The valley lies at a
mean elevation of about 1350 m. above sea level.

The city spreads over an area of 15.43 sq.km and is divided into 22 wards. Of the 22 wards, ward no. 15
is the largest area wise, with an area of 2.43 sq.km, and ward no. 21 is the smallest, with an area of 0.09
sq.km.

The city is located over a plateau like area with its outer edges fanning out with gentle slopes towards
the rivers that form its boundaries. This is in consonance with the traditional settlement planning
philosophy where the settlements were located on relatively higher ground preserving the relatively fertile
agricultural land that surrounded it. This planning effort assured the optimization of the use of urban
space and the farmlands that carried economical as well as environmental significance to the urban
residents.

The altitude of the city varies from a minimum of 1266 m. to a maximum of 1366 m. above sea level,
which shows the relative flatness of the ground on which the city is located.

Lalitpur’s residents face the threat of natural disasters, due to their location in a high-risk seismic zone.
The seismic risk is amplified given the Lalitpur City’s social, economic, and political characteristics that
increase its vulnerability, particularly the rapid and uncontrolled development. The building code is ill-
enforced, public and private construction takes place without consideration of seismic risk, and technical
information about earthquake risk in the Valley is incomplete, difficult to understand, and dispersed.
Institutional arrangements and basic regulatory frameworks for construction supervision lack both
transparency and clear roles and responsibilities among government agencies at the national and
municipal levels. A dearth of investment in understanding and mitigating the risk continues to worsen the
situation.

2.1.1 Geographical Boundaries

East Imadol VDC and Harisiddhi VDC
West Kirtipur Municipality and Kathmandu Metropolitan City (KMC)
North Kathmandu Metropolitan City (KMC)
South Saibu VDC, Sunakothi VDC and Dhapakhel VDC

LSMC lies within the warm temperate climate zone of the Kathmandu valley, with a typical monsoonal
two-season year. The yearly average temperature in the city is 15-20o Celsius and the yearly average
rainfall is 2000-2400 mm.

16
2.1.2 Population
2.1.2.1 Population Distribution
The male population exceeds the female population in all age groups except for 75 years and above.
The dependent ratio is satisfactory as those in age below 10 and above 65 are less than the working age
population. In the old age group above 65, the female population is high in line with the national average.
Population figures based on census data are presented below.

2.1.2.2 Ward Wise Population of LSMC

Population of selected four wards of Lalitpur Sub-metropolitan City

Wards
Particulars
16 18 21 22 Other 18 Wards
2001 Popualtion Census
Households 989 1287 906 1890 29924
Population 5294 6915 4249 8513 138020
10
Dalits ' population 0 92 0 0
11
Janjatis or ethnic minorities' population 4742 6118 3377 6307

2011 Population Census

Households 858 1200 1143 2460 48920
Population 4362 5777 4659 10109 195895
Dalits' population N/A N/A N/A N/A N/A
Janjatis or ethnic minorities' population N/A N/A N/A N/A N/A
Note: N/A: Not Available

List of hills Dalits and Janjatis: Based on the classification for national census of 2001 by the CBS
Hills Dalits:
Kami, Damai, Sarki, Badi, Gaine and unidentified dalits

Hills and mountain Janjatis or ethnic minorities:

A. Newar
B. Magar, Chhantel, Rai, Sherpa, Gharti, Yakkha, Thakali, Limbu, Lepcha, Bhote, Byangsi, Jirel,
Halmu, Balung, Gurung, Dura, Tamang, Kumal, Sunuwar, Majhi, Danuwar, Thami, Darai, Bote,
Baram, Pahari, Hayu, Kusunda, Chepang, Raji, Raute

2.1.3 Literacy
The literacy rate of LSMC is 80.9 percent, which is higher than the national urban literacy rate of 71.6
percent and much higher than the national literacy rate of 54.1 percent. Among the literate population
56.6 percent are male and 43.4 percent female. The female literacy rate in LSMC too is higher than the
national and national urban female literacy rates of 39.67 and 41.71, respectively.

2.1.4 Employment
In LSMC, 5.2 percent of the people are unemployed. This is lower than the national average for the
urban population, but slightly higher than the overall national unemployment rate of 4.9 percent. (LSMC –
BaseLine survey 1999).

10
Low caste “untouchables”.
11
Defined as indigenous nationalities.

17
2.1.5 Settlement Pattern
The settlement pattern of LSMC shows the consonance with the traditional urban settlement pattern of
human history. The immediate area surrounding the Durbar Square was allocated for priests, noble men,
and people belonging to high castes. Next to this were people of the business community, craftsmen,
farmers, and workers. To the outermost boundary or the periphery of the city were lower class groups
such as cleaners and butchers. Agricultural land extended beyond the city core areas. The
conglomeration of people belonging to a particular caste or Jaat which also defined their occupation
group, at one particular location in city, and the benefit they got from being at that particular location in
relation to their work and activity, suggests some sort of zoning in early days. In other words the city was
zoned by caste or Jaat.

The project area wards, namely 16, 18, 21, 22, lie outside of the Durbar Square area. As per the zoning
by the Kathmandu Valley Town Development Committee, the project wards fall into two sub-zones of the
core city area: the conservation sub zone and the mixed old residential sub-zone. The conservation sub-
zone consists of houses, buildings, and temples etc. of traditional style and reflect the age old urban
character with various stages of historical development. The buildings typically surround courtyards with
interconnecting pedestrian passage ways. The mixed old residential sub-zone includes that part of the
core area not covered by the protected monuments sub-area and conservation-sub area. It retains many
traditional buildings but also more recently constructed buildings.

2.1.6 Income
If we categorize the population according to the income per annum, most of the households in LSMC
(57.6 percent) belong to the lower medium category, and 25.6 percent of the households belong to the
medium category. The number of poor households is 12.6 percent and a very small segment (4.2
percent) comprise the upper medium and rich. LSMC is not particularly poor, with only 12.6 percent of
households being defined as income poor. However, neither is it wealthy as more than 70 percent of the
people belong to the poor and lower medium categories. In Lalitpur, poverty is multidimensional and
includes social segregation, discrimination, lack of voice, vulnerability to shocks and poor access to
public infrastructure and services (e.g., water and sanitation, health care and education). These
dimensions of poverty reinforce disempowerment and exclusion from income generating opportunities.

2.1.7 Economy
Since historic times, LSMC has been known for its sound economics, which depended largely upon
agriculture, trade and commerce, particularly in agricultural products from the fertile land on its fringes
and artistic products of wood, bronze and copper. With its once fertile agricultural land being transformed
for urban use, today agriculture forms only a small part of its economy. Instead, the business and service
sector is now the largest contributor to its economy.

LSMC being one of destinations for tourists visiting Nepal, the business related to tourism has developed
significantly. Many tourists visiting Nepal visit LSMC at least once. Known for its art and craftsmanship,
the business related to traditional handicrafts has seen a boom with huge orders being received from
several foreign countries. The city has become a trade center for these traditional products.

18
2.1.8 Infrastructures
2.1.8.1 Water Supply and Sanitation
The historical city was established over 2,000 years ago. The Kirat regime constructed rain-fed ponds
and springs. Later the Lichhavi kings linked the ponds to stone spouts and dug wells to provide water to
the city. These structures were expanded during the Malla regime, when elaborate networks of canals,
ponds, and water conduits were constructed. The historical system was neglected after the introduction
of piped water system to Lalitpur about a century ago. The stone spouts have been further affected by
the recent uncontrolled exploitation of ground water and the destruction of former rainwater collection
ponds and recharge areas. During the summer season, most of the stone water spouts provide water for
three to four months regularly but the flow decreases during other remaining months, in many cases
drying up completely. A study conducted by the culture and archeology unit of LSMC revealed that out of
61 total stone spouts, 44 spouts are working properly, 10 have dried up, and 7 are out of order. The
stone spouts of the project area wards are as follows.

12
S.N Name of spout Number of taps Ward no Name of tole Site
1 Naga BahalHiti 3 16 Naga Bahal Settlement area
2 NabahiHiti - 16 Nabahil Settlement area
3 Tapa Hiti A 3 22 Nayatole Settlement area
4 Tapa Hiti B 3 22 Nayatole Settlement area
5 AlakoHiti 5 22 Ikhachen Settlement area
6 SithaHiti 1 22 Kumbeshwor Open area
7 AmritHiti 2 22 Kumbeshwor Settlement area
8 DathuHiti 1 22 Kumbeshwor Open area
9 WasaHiti 2 22 Kumbeshwor Open area
10 KontiPukhuHiti 1 22 Kumbeshwor Settlement area
11 MishaHiti 7 22 Kumbeshwor Settlement area
12 KontiHiti 5 22 Kumbeshwor Settlement area
13 Saithu Ganesh Hiti 1 22 Kumbeshwor Settlement area

Many households in the project wards are dependent on stone spouts for water. Regardless of whether
or not a household has a water supply connection, many residents of LSMC including those living in the
four project wards are desperate for water most of the year. Most of those with water supply connection
receive intermittent service of an hour or so a day or even on alternate days in many areas, at very low
pressure. Households not connected to the official water supply network rely on a variety of sources,
including shallow tube wells of uncertain quality, and on the stone spouts.

Due to the inadequate availability of water, sanitation conditions are also poor in the project wards.
Deprivation is apparent in the pervasiveness of poor nutrition and sanitation for most families.

2.1.8.2 Housing Pattern

The quality of housing is very poor in the project wards. Traditional houses have often suffered from
serious neglect and/or have been damaged by inappropriate additions (such as adding floors above
traditional houses, thereby undermining the structural soundness of the houses). New houses typically
have been built without consideration for building by-laws and thus are at the risk of collapse if there
were to be an earthquake. Houses are clustered around courtyards connected to each other and the

12
A tole is a neighborhood within a ward.

19
streets through narrow passage ways that pose a serious disaster risk – collapse of such passageways
would leave the inhabitants trapped inside the courtyards.

2.1.8.3 Cultural and Architecturally Important Places in Project Wards

Lalitpur city was planned around Vihars and Bahils13. Out of the 295 Vihars and Bahils of the valley, 56
percent are in Patan. Water conduits, stone spouts, artistic gate ways, Hindu temples and Buddhist
Vihars adorn the city. In the project wards, there are several artistic gate ways, Hindu Temples and
Buddhist Vihars. The LSMC has maintained a culture of craft work even in the face of rapid urbanization
and many social and political upheavals. Some of the famous archeological and cultural places within
the project area include: Krishna Mandir (Gabahal), Ganesh Pati 14 (Gabahal), Nakabihar,
RatnakarMahabihar, BalkhaPati, TilingeshworMahadev (Balkha), Balkha Math, SaraswotiMandir,
BishwokarmaMandir, KayonaniChaitya, VishwokarmaAvtar, HastinagarMahavihar, Swotha Narayan
Mandir, Uma MaheshworMandir, Hari Shankar Mandir to name a few.

The project location excludes the UNESCO World Heritage Site (i.e. in the Durbar Square). "Any
municipal investment and sub-grant activity lying within the protected area/UNESCO declared heritage
site" is excluded from PURP activities as per Section 1.6 of the ESMF.

13
Monasteries.
14
A pati is a shaded resting area, which may be incorporated into a building or be self standing, open on one or more
sides.

20
 CHAPTER III: REGULATORY AND LEGAL FRAMEWORK

All municipal investments and sub-grants under the project must be consistent with the applicable laws,
regulations, and notifications of the GoN that are relevant in the context of the proposed
interventions/activities. The LSMC and the concerned line departments/agencies will ensure that the
municipal investments and sub-grants proposed and executed under PURP are consistent with the
regulatory and/or legal framework, whether national, state or municipal/local. Additionally, it is also to be
ensured that activities are consistent with the World Bank’s operational policies and guidelines. This
section is not a legal opinion on the applicability of the law but serves as guidance in the application of
the various laws and regulations to the current project context.

All activities funded under the grant facility will be aligned with regulations in the buffer zone, and must
comply with all national and local laws and building by-laws, including but not limited to those for cultural
heritage and environmental protection and seismic and fire safety (e.g., The Ancient Monuments
Preservation Act, 1956, the National Conservation Procedures, 2007 and the Kathmandu Valley Building
By-laws of 2007). The buffer zone is defined as "mixed residential area within conservation zone" in he
Kathmandu Valley Bye-laws of 2007. As the buffer zone is outside of the WHS, project activities are not
subject to UNESCO/ Department of Archeology oversight. See Section 3.1 for a complete list of laws and
regulations that apply.

3.1 Key Applicable National Environmental Laws and Regulations

This section highlights the salient features of selected laws that may have a bearing on the design and
implementation of the project. Not only will national Nepali legal requirements be applied to the project,
but so will World Bank policies. Screening will consider potential risks in addition to threshold criteria
according to Nepal regulation. High risk activities foreseen at this stage are those located in, or close to
the WHS, with these activities being ineligible. Other potential activities are small-scale demand driven,
and are likely to be classified as Category B projects according to the World Bank OP 4.01
categorization. The screening of grant applications will assess risks; Category A sub-grants will be
deemed ineligible for financing, and not be accepted.

A summary of such applicable rules and regulations is furnished in the table below:

Table 2. Applicable Environmental Policies, Acts, and Regulations

Act/Regulation Key Requirement/s or Salient Features Applicability
Environmental Any development project, before implementation, to pass through May apply. Depending
Protection Act, 2053 BS environmental assessment, which may be either IEE or an EIA on the location, type
(1997) depending upon the location, type and size of the project. and size, a sub-grant
may require an IEE or
an EIA. But for PURP
activities requiring EIA
are excluded.
Environmental Obliges the proponent to inform the public on the contents of the Yes. This would apply
Protection Rule, 2054 proposal in order to ensure the participation of stakeholders. to individual sub-grants
BS (1997; Amendment, as well as the overall
1999) operation.
National Environmental The guidelines provide guidance to project proponents on Yes. Applies to civil works
Impact Assessment integrating environmental mitigation measures, particularly on the related to the

21
Act/Regulation Key Requirement/s or Salient Features Applicability
Guidelines, 2050 BS management of quarries, borrow pits, stockpiling of materials and construction/
(1993) spoil disposal, operation of the work camps, earthworks and slope improvement of facilities/
stabilization, location of stone crushing plants, etc. infrastructure in the
project area.
Solid Waste Solid Waste Management Act aims to manage solid waste and May apply – depends
Management Act2011 mobilize resources related thereto and ensure the health on type of waste
convenience of the common people by controlling the adverse generated during
impact on pollution from solid waste. The commercial or industrial construction and
establishments should adhere to the clauses mentioned in the act operation of facilities
during the construction and operation phases of the projects. supported by the
project.
Ancient Monument It is deemed necessary to conserve, maintain and renovate the Yes.
Preservation Act, 2013 private ancient monuments of importance from national and
BS (1956) international views, by the Department of Archeology. The DoA
may conserve, maintain and renovate such ancient monuments.
The Labor Act, 2048 BS Regulates the working environment and deals with occupational Yes.
(1992) health and safety aspects.
Local Self Governance Empowers the local bodies for conservation of soil, forest and Yes.
Act, 2055 BS (1999) other natural resources. Sections 28 and 43 of the Act provide the
municipality, District Development Committees (DDCs), and
Village Development Committee (VDCs) a legal mandate to
formulate and implement programs related to
protection/conservation of environment during the formulation and
implementation of a district level plan. The Act also governs the
participatory process for works relating to participatory planning,
autonomy of local governments, community mobilization,
community monitoring, measures for marginalized groups,
including women, etc.
The Interim Constitution It has provisions of rights regarding environment and health. Yes.
of Nepal, 2063 (2007) Every person shall have the right to live in a clean environment;
every citizen shall have the right to get basic environmental
services free of cost from the State as provided for in the law.
Kathmandu Valley The legislation mainly focuses on managing the impacts of Yes.
Building By-Law, increasing population pressure and unplanned urbanization in the
2007(2064 BS): valley. The legislation also aims to mitigate the impacts of
haphazard construction activities in the valley. The standards
imposed to develop apartment building residences include
 FAR should be 3.5
 Front part setback should be minimum 6 m.
 The minimum width of road adjacent to co-owned
apartment building residence or roads connected to
adjacent roads should be at least 8 m.
 Other directives will be as per the Residential Ownership
Act, 1997
National Building Code There are 23 different title-wise volumes of building code, which Yes.
of Nepal, 1993 (2050 form a single national building code of Nepal, 1993. The National
BS)
Building Code was prepared in 1993 by then Ministry of Housing
and Physical Planning (now MoUD). This code emphasizes the
need for changes and improvement in the current building
construction design and methods. The publication represents a
standard of good practice.
National Urban Policy, The National Urban Policy 2007 aims to promote a healthy, Yes.
2007 (2064 BS) livable, safe, and economically vibrant urban environment though
planned provision of infrastructure services, facilities and

22
Act/Regulation Key Requirement/s or Salient Features Applicability
amenities that ensure improved quality of life of urban people.
Other aspects of the policy include:
- Importance of environment conservation while carrying out
urban development works and natural resource utilization.
- Promoting development of compact city/towns/settlements.
- Preparation and implementation of “Disaster Management Plan”
by local government agencies to cope with the loss of lives and
properties resulting from natural disasters.
Climate Change Policy Addresses the issues of climate adaption and disaster risk Yes.
GoN, 2001 reduction. Forecasting water-induced disasters, reducing
vulnerabilities and providing early warning information for disaster
management are some of the key points of the policy. The policy
provides some guidelines to address the issues of vulnerable
infrastructure in the context of reducing their risk to climate related
disasters.
Three Years Plan, Requires that all projects be formulated and implemented based Yes.
National Planning on methods that optimally utilize local skills and resources and
Commission,2011/12- generate employment opportunities. In the building, residents and
2013 urban development section the plan clearly set its long-term vision
of managing haphazard urbanization through physical planning.
Public and private buildings will be constructed by using local
technology and raw materials as far as possible. To meet the long
term vision, an objective has been set for the construction of new
buildings which is secured, resistant and environmental friendly.
This project will utilize the local technology and materials as far as
possible to make the project environmentally sound. The plan
also requires that the social concerns relating to equity,
community participation are taken into account in project planning
and implementation.
ILO Convention on In 2007, the UN Declaration on the Rights of Indigenous Yes. As indigenous
Indigenous and Tribal Peoples was adopted by the General Assembly. Nepal peoples are present in
Peoples, 1989 ratified ILO Convention No. 169 on September 14, 2007 (BS the sub- project area,
(No.169) 2064/05/28). Article 1 of the convention provides a the convention
definition of tribal and indigenous peoples. requirements are
Article 6 requires consultation with the peoples concerned applicable to the
through appropriate procedures and, in particular, through proposed project.
their representative institutions, whenever consideration is
being given to legislative or administrative measures which
may affect them directly.
In Article 15, it states that indigenous and tribal peoples
shall, wherever possible, participate in the benefits of
natural resource utilization activities and shall receive fair
compensation for any damages which they may sustain as a
result of such activities.
Article 16(2) clearly mentions that where the relocation of
these peoples is considered necessary, such exceptional
measures and such relocation shall take place only with
their free and informed consent.
Where their consent cannot be obtained, such relocation
shall take place only following appropriate procedures
established by national laws and regulations, including
public inquiries where appropriate, which provide the
opportunity for effective representation of the peoples
concerned.

23
Act/Regulation Key Requirement/s or Salient Features Applicability
Article 16(3) mentions that, whenever possible, these
peoples shall have the right to return to their traditional land
as soon as the grounds for relocation cease to exist.
Article 16(5) specifies the persons thus relocated shall be
fully compensated for any resulting loss or injury.
Information and The policy has developed long-term requirements for information Yes.
Communication Policy, and communication.
2059 BS

3.2 Key Applicable National Social Laws and Regulations

There are a several laws addressing social issues in Nepal. The policies relevant to the project are
briefly explained below.

Table 3. Applicable Social Policies, Acts, and Regulations

Act / Regulation Salient Feature/s Applicability

The Interim The interim constitution of Nepal, 2007 focuses on raising the Yes.
Constitution of Nepal standards of living of the general public. The Article 35 (1) asserts
2063 BS (2007) that; The State shall pursue a policy of raising the standards of
living of the general public through the development of
infrastructures such as education, health, housing and employment
of the people of all regions, by equitably distributing investment of
economic investment for the balanced development of the country.
Labour Act, BS 2048 This Act classifies those persons younger than 15 years as Yes. The act is
(1992) children and those between the ages of 15 and 18 as ‘’Nabalik.’ mandatory and directly
The act specifies that working hours for Nabalik and women must relevant to
be between 6 a.m. and 6 p.m. and prohibits night working hours for implementation of the
women. Children are prohibited from working. proposed project
activities. It provides for
The Act also states that equal opportunity shall be given to women the mode of appointment,
as that of men. Regular work hours for other employees must not working hours, control of
exceed 8 hours in a day and 48 hours in week. For work child labor, equal
conducted beyond that period, over time allowances must be paid remuneration and other
at the rate of 150% of the normal hourly wages, not to exceed 4 labor requirements.
hours each day. According to this act, employee wage rates shall
not be less than the rate fixed by the concerned GoN offices.
National Foundation for GoN has identified and legally recognized 59 indigenous Yes.
Upliftment of communities. They are officially referred to as AdivasiJanajati in
Adivasi/Janjati Act, Nepali and Indigenous Nationalities in English as per the National
2058 (2002) Foundation for Upliftment of Adivasi/Janjati Act, 2058 (2002). One
can find vast disparities in terms of socio-economic standing
among the Adivasi and Janajati groups. According to Nepal
Federation of AdivasiJanajati (NEFIN) 10 of the 59 AdivasiJanajati
are "endangered", 12 "highly marginalized", 20 "marginalized", 15
"disadvantaged" and 2 are "advanced" or better off on the basis of
a composite index consisting of literacy, housing, landholdings,
occupation, language, graduate and above education, and
population size.
Right to Information The aim of this act is to make the functions of the state open and Yes.
Act, 2064 (2007) transparent in accordance with the democratic system and to make
it responsible and accountable to the citizens. It intends to make
the access of citizens to the information of public importance held

24
 Act / Regulation Salient Feature/s Applicability

in public bodies simple and easy and to protect sensitive

information that could have an adverse impact on the interest of
the nation and citizens.

Clause 3 of the act ensures the Right to Information. It says that

every citizen shall, subject to this Act, have the right to information
and they shall have access to the information held in the public
Bodies unless confidentiality has been maintained by laws.

Clause 4 of the act describes the Responsibility of a Public Body to

disseminate information. It mentions that each Public Body has to
respect and protect the right to information of citizens. Public
Bodies shall have the following responsibilities for the purpose of
protecting the right to information of citizens:
- to classify and update information and make them public, publish
and broadcast to make the citizens' access to information simple
and easy;
- to conduct its functions openly and transparently;
- to provide appropriate training and orientation to its staffs.

Public Bodies may use different national languages and mass

media while publishing, broadcasting or making information public.
A Public Body shall arrange for an Information Officer for the
purpose of disseminating information held in its office.

The clause 7 of the act prescribes the Procedures of Acquiring

Information. It states that a Nepali Citizen, who is interested to
obtain any information under this Act, shall submit an application
before a concerned Information Officer by stating the reason to
receive such information.

3.3 Applicable World Bank Policies

The World Bank's environmental and social safeguard policies (ten of them) are a cornerstone of its
support to sustainable poverty reduction. The objective of these policies is to prevent and mitigate undue
harm to people and the environment in the development process. These policies provide guidelines for
the identification, preparation, and implementation of programs and projects.

The following operational policies of the World Bank are relevant for PURP from an environmental and
social viewpoint.
Safeguard Policies Triggered in PURP
Safeguard Policies Triggered by the PURP Yes No

Environmental Assessment OP/BP 4.01 X

Natural Habitats OP/BP 4.04 X

Forests OP/BP 4.36 X

Pest Management OP 4.09 X

Physical Cultural Resources OP/BP 4.11 X

Indigenous Peoples OP/BP 4.10 X

25
 Involuntary Resettlement OP/BP 4.12 X

Safety of Dams OP/BP 4.37 X

Projects on International Waters OP/BP 7.50 X

Projects in Disputed Areas OP/BP 7.60 X

3.4 Environmental Assessment (OP/BP 4.01)

The World Bank's environmental assessment policy and recommended processing are described in
Operational Policy (OP)/Bank Procedure (BP) 4.01: Environmental Assessment. OP/BP 4.01 is triggered
to ensure that the Bank financed project activities are environmentally sound and to assess projects
likely to have potential adverse impacts/risks.

The policy states that Environment Assessment (EA) and mitigation plans are required for all projects
having significant adverse environmental impacts or involuntary resettlement. ESMF section 1.6 lists
activities that are not eligible, including "Any municipal investment and sub-grant requiring
Environmental Impact Assessment (EIA), which will be known after screening". This is further clarified in
the "flow of safeguard categorization for PURP activities" presented in Chapter 5. For the Pro-poor
Community-based Initiatives and the Pro-poor Business Development Grant Windows, the list of
excluded activities will be specified in the calls for proposals. The safeguard screening/assessment
process at various stages of the sub-grant cycle is described in Section 5.4. The Operational Manual
includes the sub-grant application form (Annex 1), the sub-grant proposal screening to ensure
compliance with the call for proposal requirements (Annex 2), and the sub-grant evaluation form (Annex
3). Safeguard screening checklists are included in the Annex 4-6 of the ESMF (Involuntary Resettlement
Impact, IP and Environmental screening checklists). The Municipality will hire the Project Support
Consultants (including safeguard experts) to help them with the safeguard review of the sub-grants. The
municipal investments (for maximum value of US$ 825,000) will be identified through the planning
process and implemented by the municipality, so the screening will be done by the municipality at the
time of the identification of the investments.

Environmental Assessment is thus used by the World Bank to identify, avoid, and mitigate the potential
negative environmental impacts associated with the Bank’s operations early on in the project cycle as
well as to improve decision making, ensure that project options under consideration are sound and
sustainable, and that potentially affected people have been properly consulted and their concerns
addressed. Assessment should include analysis of alternative designs and sites, including the “no project
option” and require public participation and information disclosure before the Bank approves the project.

3.5 Physical Cultural Resources (OP/BP 4.11)

Physical Cultural Resources (OP/BP 4.11) is triggered because there are buildings and temples of
cultural importance in the project area. The project area is, however, outside the World Heritage Site,
and there are no cultural sites of international importance in the project area. There are traditional
buildings, temples and squares with cultural importance locally, however. We provided some information
on the type of traditional buildings in the project area based on information available from the
municipality in sections 2.1.5 and 2.1.8.3. One of the activities that will be carried out as part of the
participatory planning under Component 1 is the preparation of an inventory of tangible and intangible
cultural assets in the project area.

26
The World Bank Policy OP/BP 4.11 defines physical cultural resources as movable or immovable
objects, sites, structures, groups of structures, natural features and landscapes that have archaeological,
paleontological, historical, architectural, religious, aesthetic, or other cultural significance. Physical
cultural resources may be located in urban or rural settings, and may be above or below ground, or
under water. Their cultural interest may be at the local, provincial or national level, or within the
international community.

The Bank assists countries to avoid or mitigate adverse impacts on physical cultural resources from the
development projects that it finances. The impacts on physical cultural resources resulting from project
activities, including mitigating measures, may not contravene either the borrower’s national legislation, or
its obligations under relevant international environmental treaties and agreements. The borrower
addresses impacts on physical cultural resources in projects proposed for Bank financing, as an integral
part of the environmental assessment (EA) process. The World Bank will also follow compliance with
Nepal’s chance find policy.

Norms and procedures for the conservation and restoration of historic buildings and for dealing with
chance finds during small works will be specified. The conservation and restoration of historic buildings
will use traditional materials and construction techniques as per the specifications of the Department of
Archeology. A protocol for use by the construction contractors and/or local communities in conducting
any excavation work will be developed, to ensure that any chance finds are recognized and measures
are taken for their protection and conservation. As per the agreed protocol, all excavation work at the site
would need to stop when there are chance finds of archaeological material until the Department of
Archeology determines if the site needs to be documented or scientifically excavated. The protocols and
protective measures will be included in the EMPs that will be prepared for specific initiatives, with a focus
on consultations and participation of the local stakeholders (see section 4.3.3)

3.6 Indigenous People (OP/BP 4.10)

Indigenous People (OP/BP 4.12) is triggered because of the presence of indigenous people, i.e.,
Janajatis in the project area. The traditional population of LSMC is Newar and even with migration, the
proportion of Newar in the city remains high. Although many Newars are relatively well off, they are
categorized by law as Janajatis, i.e., indigenous groups. The Newars also retain collective attachment to
Lalitpur, returning to the historical area for many cultural and religious activities. Hence the triggering of
this safeguard policy. Besides the Janajatis, Dalits and other vulnerable groups are also present in the
project area.

This policy states that any development process under World Bank financing should fully respect the
dignity, human rights, economies, and cultures of Indigenous Peoples (IPs). The project should engage
in a process of free, prior, and informed consultation with IPs that should result in broad community
support to the project by the affected Indigenous Peoples. An Indigenous Peoples Plan (IPP) is also
required irrespective of the magnitude of impact on IPs. Guidelines for preparing IPPs are included in
Annex 7. A number of such consultations were held at the ward level in recipient wards in April, 2013
(Annexes 8 and 9).

Projects should include measures to avoid potentially adverse effects on the IP’s communities or when
avoidance is not feasible, minimize, mitigate, or compensate for such effects. They should ensure that
the IPs receive social and economic benefits that are culturally appropriate and gender and inter-
generationally inclusive.

27
3.7 Involuntary Resettlement (OP/BP 4.12)
As per World Bank policy, Involuntary Resettlement (OP/BP 4.12) is triggered in case of disruption of
informal sources of income or livelihoods that happens due to project interventions. The project
interventions, however, do not involve any involuntary (permanent or temporary) land taking. As per
JSDF rules, no land acquisition can be funded with the grant. Voluntary donation may be possible.

OP/BP 4.12 recognizes that involuntary land-taking resulting in loss of shelter, assets or access and
income or sources of income should be addressed by World Bank-financed projects. Displaced persons
should be meaningfully consulted, given opportunities to participate in planning and implementing
resettlement programs and assisted in their efforts to improve their livelihoods and standards of living.
Absence of legal title to land should not be a bar for compensation, resettlement, and rehabilitation
assistance. Vulnerable groups such as IPs, women-headed households, and senior citizens should be
entitled to special benefit packages in addition to compensation and resettlement. The Operational Policy
is applicable whenever there is involuntary land taking resulting in displacement of people and/or loss of
livelihood or source of livelihood.

In this project there will be no involuntary (permanent or temporary) land taking although there could be
temporary business disruptions, and obstruction to access resulting in loss of income or livelihoods,
albeit temporarily in nature.

Any kind of land requirements will be met through voluntary donations, which are envisaged to be
minimal without economic or physical loss and displacement. Hence minimal impacts, if any, are
expected. In rare cases where land is required, the following principles related to voluntary land donation
will be applied:

 The impacts from land donation are marginal (based on a loss of up to 10% of productive
assets).

 Impacts do not result in displacement of households or cause loss of household incomes and
livelihoods.

 Remaining assets of the donor households are not rendered economically unviable after the
donation.

 The households making voluntary donations are direct beneficiaries of the project.

 Land donated is free from any dispute on ownership or any other encumbrances.

 Consultations with the affected households are conducted in a free and transparent manner.

 There will be a mechanism in place to document the consultations, grievances and actions taken
to address such grievances.

 A memorandum of agreement will be established as a means of recording the location and size
of land being donated as well as the written consent and names of local witnesses for those
community members donating lands voluntarily. It will contain specific provisions to record that
the land being donated is free of squatters, encroachers or other claims or encumbrances.

A verification mechanism will be in place to monitor and report on any violation of commitment to only
use voluntary land donation.

28
29
 CHAPTER IV: POTENTIAL ENVIRONMENTAL AND SOCIAL IMPACTS
AND THEIR MANAGEMENT

4.1 Likely Beneficial Impacts

The beneficial impacts of the proposed project are discussed below.

The proposed project aims to improve local services and public spaces, promote local heritage and
develop income-generating activities linked to cultural industries in selected distressed neighborhoods’ of
the historic core of Lalitpur City. The pilot would contribute to improving living conditions and enhancing
cultural identity and awareness, and the value and acceptance of cultural diversity in the project area.
The pilot would also provide economic opportunities to the poorest members of the communities through
income-generating activities linked to cultural industries (handicrafts and tourism) and small works. From
a poverty reduction perspective, cultural industries such as handicrafts and tourism development have
many comparative advantages over other sectors, when they are properly managed. Handicrafts
development has: (a) high employment potential and the ability to provide an alternative source of
income that allows part-time and/or home-based work for women and disadvantaged groups; (b) low
capital investment requirements with significant potential for value added products; and (c) ability to
sustain and capitalize on high levels of skill and artistry. Sustainable tourism development: (a)
contributes to diversifying local economies, especially in poor areas with few other export and
diversification options; (b) offers labor-intensive and small-scale employment opportunities, employing a
high proportion of women and young entrepreneurs; (c) values cultural aspects and natural resources
that may be among the very few assets belonging to the poor; and (d) provides opportunities for local
communities to sell goods and services by bringing the consumer to the destination.

At this stage, only the generic interventions are known. Exact project interventions will be identified
during implementation. After the exact type and nature of interventions are known, detailed assessment,
as per the rules specified in this ESMF would be carried out in the context of beneficial impacts, its
extent, and type and nature of beneficiaries.

4.2 Likely Adverse Impacts

4.2.1 Environmental
The specific interventions planned for PURP may have some limited adverse environmental impacts in
the short term. The adverse or negative impacts related environmental issues are elaborated below:

 Potential construction period impacts or temporary impacts to residents, government facilities and
businesses in the project areas of the participating wards of LSMC.
 Issues related to noise, air, and water pollution during construction. These issues are prominent
during the construction activities of civil works like construction of pavements, repair of roads and
sidewalks, renovation of ponds, stone spouts, etc.
 Issues related to temporary disruption to basic services (water supply, electricity, telephones).
 Issues related to impacts on recharge areas/acquirers due to construction of structures, storage of
materials, encroachment, etc.
 During construction, motorists and pedestrians in the project area may experience some delays and
detouring. Some streets would be closed during construction and others would be subject to periodic
lane closures. Further delays would occur as construction trucks and equipment use local streets.

30
 Possible short-term concerns such as environmental health hazards from crafts activities, use of
inappropriate/ hazardous materials in rehabilitation works, 15 risks to the traditional/ cultural
structures, and increased dust, noise and construction debris from the construction of small-scale
infrastructure works, issues related to storage of construction materials in road and disturbance to
traffic, issues related to occupational health and safety of workers, and issues related to disaster
risks.
 Degradation of cultural sites.
 Risks related to not reporting of chance find during the excavation, cultural and archeological issues
during the construction and renovation of structures.
 Obstruction to tourists and visitors to temples, architectural places during the construction period of
civil works.

4.2.2 Social

The project is envisaged to advance positive social benefits. In some instances, however, the specific
interventions planned for PURP may lead to some temporary loss of livelihood/trade/occupation or
incomes (e.g., temporary displacement of informal vendors). Further, implementation of PURP may
adversely affect commercial, industrial or institutional activities in the project area on a temporary basis.
However, no involuntary (permanent or temporary) land taking will be allowed, and any kind of land
requirements for the project will be met through voluntary donations, which are envisaged to be minimal
without economic or physical loss and displacement. Hence minimal, if any, impacts are expected. The
following categories of issues/impacts may result from this project, though land acquisition and large
scale loss of livelihood are highly unlikely:
 Loss of access to public infrastructure, common resources and facilities Loss of livelihood, trade,
occupation or incomes.
 Negative impact on commercial, industrial or institutional activities.
 Loss of land, structures and or standing crops, trees and perennial trees.
 Risks associated with inadequate or absence of public consultations and information disseminations
and its impact on PURP planning and implementation, including with indigenous people and other
vulnerable communities.
 Risks associated with non-identification of vulnerable communities, lack of gender sensitive planning,
and non-consideration of disruption of informal sources of income due to project interventions.

4.3 Generic Mitigation Measures for each Identified Potential Impacts

At this stage, only potential impact and generic mitigation measures can be listed since the activities are
demand-driven, with the municipal investments (for a maximum value of US$ 850,000) to be identified as
through the participatory planning process. It is thus unknown, for instance, whether there will be any
investments related to water source protection. Hence, the investment specific mitigation impact will be
identified as part of the preparation of the investments. The budgeting and the costing of mitgation
measures will also be included in the environmental assessment, as required. Approval of the
environmental assessment and fulfillment of all safeguard requirements will be a condition for signing the
contract with the sub-grant applicant, as specified in the Operational Manual. An entitlement matrix is
provided in section 5.3.1. Possible generic construction phase impacts of PURP interventions and
suggested mitigation measures are elaborated below.

15
Potential hazardous materials in this project may include corrosive substances, toxic materials, flammable gases,
acids/battery, cleaning fluids, rust remover, and oxidizing substances. These are likely to be used in metal crafts such in
metal casting, grinding and polishing, etc. Typical issues of concern include lack of personnel protective equipment use,
chemical burns and haphazard disposal of wastes with potential risk of environmental pollution.

31
4.3.1 Physical Environment
Identified Impacts
Impacts related to digging of foundation
Impacts of air pollution (particularly dust)
and its impacts on surrounding
environment
Impacts related to noise created by the
vehicle used for the transportation of
construction material
Impacts related to stockpiling of
construction material during civil works
Impacts related to traffic obstruction and
traffic management due to the movement
of construction vehicles
Possibility of contamination of water
sources due construction activities.
Impacts related to health and safety of
workers, and visitors during the
construction period
Impacts related to obstruction and
disturbances to tourists visiting historical
and cultural sites
Impacts related to wastes during
construction and operation phases of the
project
Impacts to recharge areas/aquifer
Physical damages and other Impacts due
to use of heavy equipment in inner core
areas of recipient ward
Flood-related impacts for construction
Suggested Mitigation Measures
All work sites shall be fenced to avoid accidents. The excavated materials shall
be used as construction material (as applicable). The unused materials shall be
given to the needy.
Vehicle speed control and sprinkling of water on roads and in construction sites
on a regular basis. The construction material shall be properly stored and
covered during the transportation of materials.
Nighttime construction work shall not be allowed, with works to be scheduled
only between 8 a.m. and 6 p.m. Vehicle speeds shall be kept within a 30 km/hr
speed limit. Vehicles used for project activities shall be maintained, with use of
old and worn out vehicles to be avoided to control noise pollution. A potential
daytime noise threshold could be established – possibly at 55 dBa for residential,
institutional and educational receptors at boundaries, and 70 dBa for industrial
and commercial receptors at boundaries.
Construction material shall be stored/stock piled in designated areas, fenced and
covered for safety.
Adequate traffic signs, warning signs, and scheduling of transport operations
outside office hours to avoid traffic congestion and inconvenience to people.
Protection of water sources..
Use of safety signs in places, fencing of active work places/construction sites,
provision of Personal Protective Equipment (PPE) to workers.
Adequate safety signs shall be used in construction areas, alternative routes for
tourist to visit such places shall be arranged during the construction phases.
Management of waste during construction and operation phases of the project,
including through prohibition of littering and illegal dumping of waste in premises
and their surroundings.
Such activities would be excluded.
Use of heavy equipment will be avoided as far as possible,
No works shall be undertaken during the main monsoon rainy season between
June and August.

4.3.2 Biological Environment

Identified Impacts
Impacts related to loss of, or
disturbance to land, trees, crops
and flora during construction
period
Impacts related to use of
hazardous materials in project
activities, especially in metal
crafts
Suggested Mitigation Measures
Cutting/removal of large flora would be excluded. Only weed and small tree removal
from courtyard will be permitted.
During the processing of grant applications, environmental screening will assess risks
related to hazardous materials. Various options will be explored, such as substituting
the hazardous materials with non-hazardous or less hazardous material, avoiding or
minimizing use of hazardous materials, implementing management control suitable to
small scale/ household operation (such as handicrafts), training the operators,
preparing written safety process (or standard Operating Procedures) and keep visible
displays, provision of suitable personnel protective equipment (e.g. footwear, masks,
protective clothing & goggles, emergency eye-wash, shower, ventilation, fire-
extinguisher, first-aid, etc.) and specially designed waste segregation, collection,
storage and disposal systems.

32
4.3.3 Socio-economic, Cultural, and Archaeological Environment
Identified Impacts
Disturbance to local residents due
to obstructed access to public
infrastructure, common resources
and facilities, pollution, etc.
Pressure on local infrastructures
due to influx of workers
Obstruction to
worshippers/pilgrims/visitors while
entering temple premises during
renovation of temple, shrines,
stupa (semi hemispherical
structure containing Buddhist
relics)
Issues related to chance finds
during excavations or other works
as well as other cultural issues
encountered during works on
physical cultural resources
Suggested Mitigation Measures
Prior information dissemination to the public regarding the nature, schedule of
work in advance.
Timely completion of work to minimize disturbance.
Adherence to pollution control measures as elaborated above.
Record keeping of workers.
Provide orientation and training to workers for maintaining social harmony,
prohibition of ill-social behaviors (alcohol, gambling, etc.).
Local people shall be engaged in construction as per their skills and
qualifications.
The access shall be provided to the priest/care taker of the temple/shrines for
certain hours of each day, so that the priest and visitors can visit the temple.
The new construction in any means shall not deteriorate the “authentic nature” of
the temple/shrines/or any structure of archeological importance.
Department of Archeology (DoA) norms for materials, size/shape, shall be
followed. Encourage representatives from DoA to be present during the
excavation period. The LSMC shall follow the Ancient Monument Preservation
Act, 1956 of GoN in addition to the following requirements:
(i) The municipality shall develop a protocol for use by construction
contractors in conducting any excavation work, to ensure that any
“chance finds” are recognized and measures are taken to ensure they
are protected and conserved. Part of this protocol will be that when
“chance finds” of archaeological material occur, all excavation work at
the site shall stop until the DoA can determine if the site needs to
be documented or scientifically excavated before work continues.
(ii) All materials used in the repair and restoration of historical buildings
and their surroundings (plinths, walls, stairs, paving etc.) shall be of
traditional materials (e.g., lime mortar instead of cement, Jhingati roof
tiles, dachi brick, etc.) and be of high quality. The DoA will provide
specifications for such materials as wood (for columns, rafters, struts),
brick or stone (for paving, stairs, walls, plinths), lime mortar, and roof
tiles that shall be followed. Materials shall be checked at pre-shipment
and at delivery for compliance with specifications.
(iii) The construction techniques (joints, fasteners, etc.) shall be consistent
with the original temple construction techniques. While the design of
parts that must be replaced (e.g., struts, column bases) should be
consistent with and match the existing temple in scale, design, level of
detail, best practice would be to clearly indicate the difference between
old and new elements.
(iv) The materials and construction techniques shall be of such quality that
they shall not require major repairs or refurbishment and should be
sustainable over time with little beyond routine maintenance.
(v) Craftsmen with knowledge and skills applicable to the style and age of
the temple design shall be employed to do the traditional repair and
33
 Identified Impacts
Possible temporary disruption of
business activities, with possible
loss of incomes
Risks associated with inadequate
or absence of public consultations
and information disseminations
and its impact on PURP planning
and implementation, including with
indigenous people and other
vulnerable communities
Risks associated with non-
identification of vulnerable
communities, lack of gender
sensitive planning, and non-
consideration of disruption of
informal sources of income due to
project interventions
16
As per Ancient Monument Preservation Act, 1956 of GoN, the chance find shall be reported to DoA. The DoA will treat or
manage chance finds.
Suggested Mitigation Measures
restoration activities (e.g., woodcarving, mortar preparation,
16
replacement of joists, etc.).
There should be no need to close shops and retail outlets for longer period.
However, the resettlement policy makes provision for compensation for
temporary business losses during construction.
The risk has been taken into account in the project design. At the inception of
the project activities, a social assessment and participatory plan will be
prepared based on procedures set out in the Operational Manual. A project
component (USD 320,000) has been designed to promote community
awareness and strengthen communities, in line with the demand-driven
approach of the project.
The risk has been taken into account in project design. Benefits to the poor
and vulnerable will be the main criteria for selecting the sub-grants under the
grant facility, together with sustainability amd cost effectiveness. A screening
checklist will be required to be submitted with the sub-grant application form to
identify potential temporary social impact such as disruption of informal
sources of income. The Gender Development Framework included in this
ESMF will be followed to ensure gender-sensitive planning. Number of female
beneficiaries will be monitored annual as a core indicator for the project.
34
 CHAPTER V: ENVIRONMENTAL AND SOCIAL SCREENING AND
MANAGEMENT

Environmental and social considerations should be envisioned right from the stage of project
identification. In general, projects are identified on peoples' demand, which is a good practice. However,
when environmental and social consequences of implementation of a project are not well thought
through, project implementation can lead to serious environmental and social problems and even failure
of projects. While identifying municipal investments/sub-grants or collecting demands from the public,
possible alternatives should also be foreseen and noted. The PMT will collect information on the
environmental and social setting; possible beneficiaries and possible environmental and social impacts
of each alternative should also be taken from the sub-grant proponents. The proposers/demand
providers and general public should be made aware of the environmental and social consequences
during implementation and should be requested to choose environmentally and socially acceptable
projects right from identification to avoid environmental and social problems at later stages in PURP.

5.1 Environmental & Social Screening

Every municipal investment and sub-grant proposal to be funded under the PURP will be subject to an
environmental and social screening process before it is selected for inclusion in the project. The
screening process will help establish the level of environmental and social assessment required and will
apply the exclusion criteria presented in Section 1.6. The screening process intends to identify possible
environmental and social concerns relevant to the municipal investments/sub-grants as well as suggest
any further investigation and assessment, if necessary. The sub-grant applicants will fill in a screening
form with assistance from the PMT for activities funded under the Pro-poor Community-based Initiatives
Grant Window and the Pro-poor Business Development Grant Window. The PMT will carry out the
environmental and social screening for the municipal investments implemented under the Pro-poor
Municipal Investments and Initiatives Grant Window.

5.2 Safeguard Categorization of Municipal Investments and Sub-grants

Primarily, the environmental and social screening exercise will be undertaken to determine the key
environmental and social issues/concerns and the nature and magnitude of the potential impacts that are
likely to arise on account of the proposed municipal investments and sub-grant interventions. The major
or key environmental and social issues to be identified will be determined by the type, location, sensitivity
and scale of the municipal investment and sub-grant intervention. The results/findings from this exercise
are/will be used to determine the:

 Need for detailed assessment;

 Extent and type of Environmental Assessment (EA) required;
 Possibility of exclusion of indigenous people and vulnerable communities.

The screening result will also be an important input for analyzing the ‘feasibility’ of the municipal
investments and sub-grant interventions along with engineering/economics and social criteria.

Screening of the municipal investments and sub-grant interventions will be done based on the prevailing
legal requirements to determine whether the activities are subject to, with respect to environmental
issues: (a) GoN's IEE (Initial Environmental Examination); (b) EIA (Environmental Impact Assessment);

35
(c) No-EA (Environmental Assessment) processes; or require (d) only EMP or the code of practices. Any
municipal investment and sub-grant requiring Environmental Impact Assessment (EIA) – which will be
known after screening – cannot be supported under the PURP. With respect to social issues, the
screening will help determine: (a) the need for conducting SIA (Social Impact Assessment); (b)
preparation of a RAP (Resettlement Action Plan); (c) scope and nature of Indigenous People-Vulnerable
Community Development Framework; and (d) Gender Development Framework. Screening will also help
determine whether municipal investments and sub-grant proposals should not be included at all for
funding under PURP should they be found to fall under the ‘negative’ list or ‘exclusion’ criteria set forth in
this ESMF.

Flow of Safeguard Categorization for PURP Activities

Screening of Municipal Investments and Sub-grants

Interventions

Activities Requiring Activities Requiring EMP Activities Requiring IEE Activities requiring EIA
Code of Practices (excluded from PURP)

Monitoring and Reporting

The Environmental Protection Act (EPA)/Environmental Protection Regulations (EPR), 1997 of GoN
defines the projects which falls under IEE and EIA category as per Annex 1 and Annex 2 of EPA.

5.2.1 Category I : Municipal investments and sub-grant interventions

Activities requiring IEE based on legal requirements and potential environmental and social risks (basis
as per Environmental Protection Act/Regulations 1997 of GoN)17.

Threshold environmental criteria for municipal investments/sub-grants requiring IEE are identified on the
basis of the Environment Protection Act and Regulations 1997 as well as based on potential short-to-
long-term adverse environmental and social impacts and their sensitivity. The PURP sub-grants requiring
IEE should follow the schedules of EPA/EPR 1997. Each project requiring IEE should have the
respective assessment done prior finalizing Detailed Project Report (DPR). Such municipal
investments/sub-grants should prepare Environment Management Plan (EMP) for approval. An IEE
report will be prepared. In addition to thresholds defined by government regulation, potential adverse
impacts and environmental sensitivity will be duly considered while conducting the IEE study and writing
IEE report. The TOR for the IEE as well as the IEE report needs approval by the concerned ministry

17
Civil works requiring EIA are excluded from this project.

36
(MoUD)18. The IEE report will have a built-in EMP which will fully describe appropriate preventive and
curative mitigation measures and their implementation procedures. The environment experts of the PMT
formed at LSMC will be responsible to ensure that safeguard requirements are met. The process for
conducting IEE is shown in a flow diagram in Annex 1. For municipal investments and sub-grants
requiring IEEs, construction work will start only after the approval of IEE by the concerned ministry.

5.2.2 Category II municipal investments and sub-grant interventions

Municipal investments and sub-grants which do not require IEE, but may have some minor to moderate
degree of environmental and social impacts.

Such municipal investments and sub-grants require EMP. The format and table of content for preparing
EMP is included in Annex 2. The following process will be followed to prepare the EMP:

Phase I: Preparation of EMP. The EMP is an overall plan, which addresses the minor to moderate
safeguard issues arising from implementation of the municipal investments and sub-grants and suggests
a strategy and action plan to mitigate the adverse environmental and social impacts and enhance the
beneficial impacts of the interventions. The EMP for a municipal investment or a sub-grant consists of
the set of mitigation, monitoring, and institutional measures to be taken during implementation and
operation to eliminate adverse environmental and social impacts, offset them, or reduce them to
acceptable levels. The plan also includes the actions needed to implement these measures. An EMP is
required for all category II municipal investments and sub-grants interventions under PURP.

The EMP includes:

 Site Specific EMP Activity Schedule, including cost for implementation of mitigation measures.
 Site Specific EMP Monitoring Schedule, including monitoring responsibility delineation.
 Cost Estimate for EMP Monitoring. This can include cost required for capacity building and training
activities basis as required.

The PMT will prepare the EMP for category II municipal investments and sub-grants. Sub-grant
applicants will be responsible for preparing the EMP with support from PMT and PSC. PMT will be
responsible for preparing the EMP for category II municipal investments with support from PSC.

Phase II: Approval of site specific EMP and Inclusion of site specific EMP Provisions in
Designs/Estimates After preparation of the EMP report, it has to be endorsed by PMT (subject to review
and clearance from the World Bank as described in Section 5.2.4). After its approval the provisions of
the EMP need to be included in the municipal investments and sub grant interventions’ designs and
estimates before final approval..

Phase III: EMP Implementation Phase. After approval, EMP provisions along with the municipal
investments and sub grant interventions ‘designs/estimates shall be implemented along with construction
works. The responsibility of overall EMP implementation as well monitoring implementation for the
category 2 sub-grant interventions shall lie with PMT.

18
The Initial Environmental Examination (IEE) shall be approved by the concerned ministry, i.e the project related to
energy is approved by the ministry of energy, and project related to urban development is approved through the Ministry of
Urban Development.

37
5.2.3 Category III municipal investments and sub-grant interventions
Municipal investments and sub-grant interventions which do not fall into categories I and II shall follow
Codes of best practices during the construction and operation phases.

Environmental codes of practices provide technically specified solutions illustrating the general principles
of environmentally sound and sustainable planning, design and construction. Best Environmental
Practices (BEP) is the knowledge that underpins examples of excellence in environment in carrying out
an activity. BEP provide opportunities for broad applicability and benefit across PURP, helping to
enhance positive impacts and to avoid or lessen adverse or negative impacts. The use of these practices
such as cleanup or infrastructure improvement minimizes health and environmental impacts from the
construction and operation phases of the project, reduces energy consumptions and cost, reduces
GHGs, etc. This environmental code of practices should be applied in conjunction with the standard
technical standards for preparation of designs of civil works. There are generic and project specific best
practices as well. The generic environmental best practices to be followed for PURP municipal
investments and sub-grant interventions are elaborated below:
 Solid Waste Management should be based on Reduce, Reuse, and Recycle (3R) principles:
Generation of solid, semi-solid and liquid waste requires proper on site management19 and scientific
disposal.
 As there are settlements around the project area, no or few nuisances to the community should be
produced. Examples include use of less noisy equipment and no work during night hours as well as
adoption of Environmentally Sound Technologies (energy efficient system design, selection of less
polluting technology) in civil construction.
 Health and Safety Standards (e.g., use of personal protective equipment, use of safety signs) should
be adopted in construction activities, and in activities related to manufacturing and promotion of
handicrafts.
 Environment, Health, and Safety (EHS) related orientation and job specific training should be
provided to employees.
 Adherence to GoN Rules, Regulations, Policies and World Bank policies, and compliance with
formats and checklists developed by ministries.
 Correction of shortcomings, periodic review meetings, clear assignment of roles and responsibilities
 There should be no or limited impact on local natural resources. In case of impacts, proper mitigation
measures should be devised to address it.
 Water and energy management strategies 20 should be in place while selecting activities under
PURP.21

19
On site management pertains to functions that must be performed on the construction premises. Good on-site
management will have a number of characteristics, which may vary site to site. Examples are ensuring that construction
workers will wear personal protective equipment, clean up after works, safety signs are installed, work sites are fenced, no
haphazard disposal of construction wastes take place, etc. As a result of construction, the soil may be displaced from its
original locations, which can possibly cause environmental problems in future. This could be managed on site during
construction.
20
Civil works, though small in scale, are likely to be undertaken in residential and/or commercial areas. Disturbance to
water supply lines and electricity as well as increased demand for water and electricity during construction are possible.
These risks may be avoided, minimized, or managed through specific strategies and measures. Creating a culture at the
construction sites that works to change workers’ attitudes and behaviors to accept ownership of water efficiency is
fundamental to improving the use of water in an efficient manner. Good housekeeping can assist construction site reduce
their overall water use. Storm water runoff from construction activities can also significantly impact water quality. As storm
water flows over a construction site, it picks up sediment, debris, chemicals, and other pollutants. Polluted storm water
adversely impacts drinking water sources. Day-to-day operational control of project activities is essential for ensuring
compliance with storm water pollution requirements. Protection of waste water pits is a good example of operable
mitigation measures.
21
The PURP assisted construction activities should focus on: (i) reducing materials consumption and wastage; (ii)
increasing re-use and recycled content using products / resources with lower embodied carbon and embodied water, and

38
 Environmentally friendly technologies and environmental conservation measures like tree plantation,
awareness raising in environmental (including cultural and archeological) should be promoted.
 Information dissemination and public consultations should be an integral part of all activities under
PURP.

The generic Environmental Codes of Best Practice can be adapted to certain types of Category III sub-
grants. The Codes of Best Practice will be included in the clauses of the contractual agreements. These
will be modified and improved and revisions will be made during project implementation phase as
needed.

5.2.4 The Roles and Responsibilities of the World Bank

The role of World Bank is to ensure that the PURP is in compliance with GoN and World Bank
requirements. For this purpose, Initial Environmental Examination (IEE) reports and EMPs of each sub-
grant/activity and EMP will be reviewed and “no objection letter” shall be provided by the World Bank
prior to start implementation. For activities, which require code of best practices, PMT can directly
approve.

5.3 Management of Social Safeguards

The key steps for addressing social issues related to the project are the same as the ones designed for
dealing with the environmental issues – screening, assessment and preparation of mitigation plans.
These steps are necessary to identify and address the potential social concerns or impacts of a project
right from the planning stage to its implementation and post-implementation operations.

5.3.1 Social Screening (Including Resettlement Policy Framework, Indigenous People

and Vulnerable Community Development Framework (IP-VCDF), and Gender
Development Framework)
The envisaged activities and scope of PURP are not expected to require SIA (Social Impact
Assessment) or RAP (Resettlement Action Plan). However, there may be short-term impacts on
livelihood and access to facilities and properties of households. Such impacts (if any) shall be mitigated
and well documented.

Since the municipal investments and sub-grants under PURP might create temporary business
disruption, the following types of losses, policy/entitlement frameworks are applicable and hence
discussed below.

Entitlement Matrix Showing Possible Losses in PURP and Entitlements

An Entitlement Matrix (EM) has been developed as per this framework following GoN’s and the World
Bank’s safeguard policies. It outlines various types of losses that could result from project activities.
Temporary business disruption during civil works is the only type of loss that could occur from project
activities that would require compensation. Both permanent and ambulatory vendors will also be eligible
for compensation. Compensation amounts will be based on the principle of replacement value. The exact
value of compensation and replacement cost will be determined after conducting the detailed

no scarcity or source security issues; (iii) reducing energy and water use by enabling energy and water efficiency during
construction; (iv) providing alternative supplies of water and energy for, and during construction.

39
measurement survey (DMS) to record the actual impacts of the affected structures, land and/or non-land
assets and census survey of the affected businesses, and families.

40
Types of Loss Entitled Entitlement/Compensation Issues Implementation Procedures Responsibility
Persons
Temporary loss of Permanent For permanent businesses, full closure of the shops during  Develop a list of businesses, shops, etc., that will be LSMC, Sub-
livelihood, trade, business construction is not expected, although road closures affected during civil works Grant
occupation or restricting vehicle access may be expected in some places.  LSMC, in consultation with local communities will decide Recipients
incomes due to Pedestrian access will be maintained at all times. As a on the terms and conditions of calculation of the losses
disruption during result, only partial disruption to some businesses is (e.g., criteria that will be used to calculate the reduction
construction expected. This resettlement policy makes provision for in sales)
compensation for business losses during construction . The  LSMC in consultation with local experts and affected
municipality and/or sub-grant recipient will be responsible for business owners will determine the compensation prices
compensating businesses for temporary losses (reduction in  Notice about the civil works schedule will be
sales) during civil works. communicated to the affected businesses, shops, etc.,
35 days prior to the initiation of civil works

 A list of ambulatory vendors operating in the sub-project

Ambulatory For ambulatory vendors, the business is very small and
vendors generally can easily be temporarily moved from one
location to another. Usually, there are several alternative
areas along the existing roads where they could be
relocated. The vendors’ losses are therefore considered as
minimal. Ambulatory vendors shall be provided relocation
assistance. The LSMC and/or sub-grant recipient will be
responsible for compensating businesses for temporary
losses (reduction in sales) during civil works. There will be
no permanent displacement of ambulatory vendors under
the project
Loss of access Household During construction, access to some public infrastructures
to public s/Affected such as community wells, etc., is envisioned. Contractors
infrastructure, Persons and sub-grant recipients will be required to take extreme
common care to avoid damaging public structures. In cases where
resources and the loss is only temporarily, an alternate source for those
facilities facilities will be arranged.
sites will be developed prior to the start of civil works
 Ambulatory vendors will be given 35 days prior notice
prior to the initiation of the construction work
 The new location for ambulatory vehicles during the
construction phase will be identified and communicated
to the vendors
 Every ambulatory vehicle that will have to be temporary
moved will be given transportation allowance on actual
cost basis
 A list of public infrastructure, common resources and LSMC, Sub-
facilities will be prepared prior to the start of the civil Grant
works Recipients
 An alternate source for public facilities will be identified,
arranged and communicated to the project affected
people
 In case of permanent damages to the resources and

41
Types of Loss Entitled Entitlement/Compensation Issues Implementation Procedures Responsibility
Persons
facilities as a result of construction works, the affected
parties will be compensated immediately for the
damages incurred and/or the facilities restored
immediately to former conditions.

Loss of standing Forest Mitigation measures should be initiated to control erosion  List of plant and tree species lost and an assessment for LSMC and Sub-
crops, trees and users’ caused by tree cutting, and to stabilize and rehabilitate it maintaining that kind of vegetation grant recipient’s
perennial trees group/other with suitable bioengineering works and vegetation and  Compensation for trees calculated on the basis of type,
groups should be according to DoF regulations age, and productive value of affected trees in
concerned consultation of concerned forestry office and locals
 Advice from the Department of Forestry will be
requested for necessary action

42
As a reference, the World Bank’s format for social impact assessment, social screening criteria, RAP,
and process for preparation of RAP are included in Annex 3 and Annex 4.

5.3.2 Indigenous Peoples and Vulnerable Communities Development Framework (IP-

VCDF)
This Indigenous Peoples and Vulnerable Community Development Framework (IP-VCDF) is developed
to guide the preparation of municipal investments and sub-grants under the PURP to ensure better
distribution of the benefits of the project activities with a focus on the Adivasi/Janajatis and other
disadvantaged social groups located in areas in which PURP will be implemented. The IP-VCDF is
developed based on the national policies/strategies as well as the World Bank’s Indigenous Peoples
Policy. The principal objectives of the IP-VCDF are to:

 Ensure that the project engages in free, prior, and informed consultation with affected communities,
leading to broad community support for the project, with particular attention to vulnerable groups;
 Ensure that project benefits are accessible to the vulnerable communities living in the project area;
 Avoid any kind of adverse impact on vulnerable communities to the extent possible and if
unavoidable ensure that adverse impacts are minimized and mitigated;
 Ensure vulnerable peoples’ participation in the entire process of preparation; implementation and
monitoring of the sub-grant activities;
 Minimize further social and economic imbalances within communities; and
 Develop appropriate training / income generation activities in accordance to their own defined needs
and priorities.

5.3.2.1 Relevant Policies on Indigenous People and other Vulnerable Communities

Nepal is a signatory to ILO convention on Indigenous and Tribal Peoples, 1989 (No.169). Besides
that Nepal does not have a standalone policy on Indigenous Peoples. However in the Three Year
Interim Plan (TYIP) (2007-2010), or the Tenth Plan, significant emphasis has been placed on delivering
basic services to the disadvantaged and Indigenous People (IPs), women, disabled and vulnerable
communities (VCs) such as Dalits and Adhibasi/Janajati. One of the main objectives of the Tenth Plan is
the implementation of targeted programs for the uplifting, employment and basic security of Dalits,
indigenous people and disabled peoples. The policy provision also outlines that the Government should
pilot strong and separate packages of programsfor the basic security of the vulnerable sections of
society. The Three Year Interim Plan (TYIP) (2007-2010) includes the following policies for inclusive
development of Dalits, Adivasi/Janajatis and other vulnerable groups:

 Creating an environment for social inclusion;

 Participation of disadvantaged groups in policy and decision making;
 Developing special programs for disadvantaged groups;
 Positive discrimination or reservation in education, employment, etc.;
 Protection of their culture, language, and knowledge;
 Proportional representation in development; and
 Making the country’s entire economic framework socially inclusive.

The National Foundation for the Upliftment of Adivasi/Janajatis Act, 2058 (2002), the National Human
Rights Action Plan 2005, the Environmental Act 1997, and the Forest Act 1993 have emphasized

43
protection and promotion of vulnerable groups in general, IPs’ knowledge, and cultural heritage in
particular. In 1999, the Local Self-Governance Act was amended to give more power to the local political
bodies, including authority to promote, preserve, and protect the IPs’ language, religion, culture, and their
welfare.

The World Bank policy on indigenous peoples emphasizes the need to design and implement projects in
a way that fosters full respect for indigenous peoples’ dignity, human rights, and cultural uniqueness and
so that they:

 Receive culturally compatible social and economic benefits; and

 Do not suffer adverse effects during the development process.

5.3.2.2 Screening and Categorization of Impacts on IPs and VCs

These steps will be followed to assess impacts on IPs and VCs, which additionally require free, prior,
and informed consultation:

1. A social assessment will be carried out for the entire project at the beginning of the activities as part
of the pro-poor participatory planning process (component I).
2. Then a social screening will be carried out to determine whether IPs and VCs will be affected by the
activities as part of the environmental and social screening for the municipal investments and sub-
grants carried out at the identification stage.

The screening will involve identifying IPs and VCs belonging to the area where the municipal
investments and sub-grant interventions will be undertaken, their population (number and ratio), and their
characteristics as compared to the main population in the project area through primary and secondary
data collection.

The social screening will provide the necessary information to determine impact including: (i) the
beneficiary population living within the impact zone of the municipal investments and sub-grants (ii) the
extent of land required (even temporary) and number of land owners affected (if applicable); (iii) impacts
on poor and vulnerable groups including needs and priorities for social and economic betterment; and
(iv) other social impacts.

The screening report will also provide information about the potential damage / loss of common
community structures such as: water tanks and pipes, religious cultural monuments / sites, inner urban
roads, etc.

Municipal investments and sub-grants will be categorized according to the level of impacts on IPs and
VCs. The categorization will be determined by the type, location, scale, nature, and presumed magnitude
of potential impacts on IPs and VCs. The municipal investments and sub-grants will be categorized as
per the following table:

Table 4. Categorization of Impact on IPs and VCs for Sub-grants

Category Determination of the type of Social Assessment Needed

44
 22
Category A Municipal investments and sub-grants expected to have significant impacts that require an
Indigenous People (IP)/Vulnerable Community Development Plan (VCDP)
Category B Municipal investments and sub-grants expected to have limited impacts that require specific
action for IP/ Vulnerable Groups in resettlement plans and/or social action plans
Category C Municipal investments and sub-grants not expected to have impacts on IP/ Vulnerable
Groups and, therefore, do not require special provision for IP/ Vulnerable Groups

The IP-VCDP Impact Screening & Categorization Form is presented in Annex 6. Based on the
categorization for screening impact, sub-grant specific and municipal investment specific IP-VCDPs will
be prepared as per the guidelines and sample IP-VCDP provided in Annex 7. In case of significant
impacts (falling in categories A and B) on IPs and VCs, the PMT will submit the IP-VCDP to the World
Bank for clearance. An IPP would be required irrespective of the magnitude of impact on IPs, with the
guidelines for preparing IPPs included in the Annex 6. Short IP-VCDPs prepared as a part of ‘less
impact’ or ‘no impact’ category will be internally evaluated. The World Bank will periodically review and
do random review of these documents.

5.3.2.3 Specific Measures to be followed while dealing with Indigenous People and
Vulnerable Groups
Specific measures for vulnerable groups including indigenous peoples, Dalits, minor ethnic communities,
women, and powerless communities are outlined below:

 Ensure awareness raising, active participation and capacity building of the vulnerable communities
 Ensure participation in awareness campaigns, project implementation and monitoring of vulnerable
groups
 Ensure equal wages for similar work during implementation
 Launch project information campaign to inform the target groups about the key features of the project
and the municipal investments and sub-grant interventions implemented under the project.
 Asses and analyze the presence of indigenous and Dalits in the areas where municipal investments
and sub-grants are implemented
 Provide preferential treatment and support to indigenous people, Dalits and other vulnerable
communities
 Involve IPs, Dalits and vulnerable groups in beneficiary groups as needed to increase their
participation.
 Ensure the identified needs and priorities of vulnerable people are taken into account in the
municipal investments and sub-grant interventions
 Conduct project related meetings in indigenous and vulnerable community areas to encourage their
participation. Ensure a quorum which includes representation from IP groups.
 Encourage sub-grant interventions providing targeted assistance/training aimed at vulnerable groups
to enhance livelihoods and participation
 Build capacity of indigenous peoples, Dalits and other vulnerable communities to promote their
necessary knowledge and skills to participate in the project activities

22
The impacts on IP/ Vulnerable Group will be considered ‘significant’ or Category A if the sub grant positively or
negatively:
a) affects their customary rights of use and access to land and natural resources,
b) changes their socio-economic status,
c) affects their cultural and communal integrity,
d) affects their health, education, livelihood, and social security status, and/or
e) alters or undermines the recognition of indigenous knowledge.

45
 Encourage development of capacity through trainings on skill enhancement (handicrafts, etc.) of
local people as part of the sub-grant interventions.

5.3.2.4 Framework for Developing Gender Development Framework

Mainstreaming gender equity and empowerment is a focus area in the project. The Gender Development
Framework (GDF) outlines the specific gender issues and the corresponding strategies and activities
which will be given due consideration under PURP. This will ensure women’s participation and benefits
from project activities. The major tools used to identify and deal with gender issues are: gender analysis,
incorporation of gender issues in municipal investments and sub-grants interventions, and gender-
sensitive consultations.

Gender analysis will be an integral part of the initial social assessment, carried out by the PMT and sub-
grant proponents respectively with the support of the PSC as part of the safeguard screening of the
municipal investments and sub-grant intervention preparation. . The gender analysis will identify issues
related to gender disparity, needs, constraints and priorities. Disaggregated data on beneficiaries based
on gender (in particular female-headed households) will also be collected and monitored.

The project activities would be developed to be gender responsive based on the findings of the gender
analysis. Agreed actions will be included in the design of the municipal investments and sub-grant
interventions by the PMT and sub-grant recipient respectively to outline how gender concerns will be
addressed throughout the project and ensure measures are taken to maximize gender-related benefits.
The findings and recommendations from the gender analysis carried out at the screening stage and
feedback on gender issues from beneficiaries during implementation will be regularly monitored by the
PSC to determine the need for further action.

The PSC will include a social specialist with prior experience incorporating gender considerations into
project design and implementation. The PSC social specialist will be responsible for carrying out gender
sensitization and awareness campaigns and related training to the PMT, ward authorities and sub-grant
recipients. The awareness raising and technical assistance costs are estimated of the order of USD
50,000-100,000 depending on the nature of the municipal investments and sub-grants identified for
implementation. The costs of the actions required to maximize gender-specific benefits are unknown ex-
ante given the demand- driven nature of the municipal investments and the grant facility.

5.3.2.4.1 Gender Development Framework

The suggested Gender Development Framework for the project is presented below:
Gender
Strategy Proposed Activities Responsible Party
Issues
Lack of awareness Awareness campaign Formation of women’s groups around Ward authorities with support
about the project for the specific interventions as required. from PMT/PSC
communities focusing on Share information about the project
the vulnerable groups benefits in Nepali language.
including women.

Excluded from Gender sensitization to all
Opportunities stakeholders including
PMT.
Ensure Women’s
participation during
meetings, project
Carry out meetings and interaction PMT/PSC, all components
program with and orientation to women
in the project area.
Ensure representation of women in the PMT/PSC
grievance redress committee.
Prepare clause to be included in civil PMT/PSC, component 2

46
 Gender
Strategy Proposed Activities Responsible Party
Issues
implementation and work contract documents to prevent
monitoring. discrimination in employment on the
basis of sex, caste, religion and
ethnicity.
Conduct leadership training for women PMT/PSC, component 3
members of commodity groups in the
project area.
Disparity in Wages Accord priority Inform women groups regarding PMT/PSC
employment to women in proposed construction works.
construction activities Identify women interested to work;
under the project. assess their skills and involve them
Promote equal wages for as per their capabilities.
equal work Monitor women’s wage rate and do
the needful to ensure wage equality
for similar type of construction
works.
Inclusion of the above elements in
the contractors’ documents.

47
5.4 Process for Managing Environmental and Social Impacts
This ESMF proposes measures to minimize and mitigate environment and social impacts of the project
activities. Proper integration of the findings from the safeguard studies and public consultations into the
planning/decision-making process and engineering outputs (design and bidding documents) will be
essential to avoid/reduce the environmental and social issues that may arise due to the project. To
ensure that the municipal investments and sub-grants do not cause any significant adverse impacts, a
safeguard screening process will be established. In case significant impacts are likely to occur, the
municipal investments and subgrant/s will require environmental and social assessment and preparation
of mitigation/management plans. The key steps for managing any potential adverse impacts are outlined
in the table below: a) for civil works carried out under the Pro-poor Municipal Investments and Initiatives
Window; and (b) for civil works carried out under the Community-based and the Pro-poor Business
Development initiatives.

Table 5. Key Steps for Managing Environmental and Social Issues (Pro-poor Municipal
Investments and Initiatives Window)

Stages in
Steps in the Assessment Process
Sub-grant Cycle

Identification of municipal
investments
Project Design
(for works that only require
EMP)
Project Design
(for works that require
detailed assessment, i.e
IEE)
Since works requiring
EIA are included in the
exclusion criteria for
PURP, EIA details are
not mentioned here.
PMT/PSC to carry out Environmental and Social Screening to determine key potential
safeguard issues.
PMT/PSC to carry out field verification to determine whether exclusion criteria have been
adhered to.
PMT/PSC to consult with key stakeholders
PMT/PSC to prepare Environment Management Plan for municipal investments not requiring
detailed assessment (Category II projects) in parallel with detailed engineering design phase
PMT/PSC to ensure integration of the EMP into the Bidding Documents (if works are carried
out by contractors)
PMT/PSC to prepare ToR to carry out Initial Environmental Examination (IEE)to determine
level and scope of EA. PMT/PSC will do it. ToR for IEE and IEE should be approved by
relevant line ministry (MoUD). Preparation of IEE to include steps listed below
Baseline Data Collection: Identification of environmental and socio-economic
conditions.
Environmental Impact Prediction/Assessment: Assessment of impacts in terms of
characteristics such as magnitude, extent, duration and significance in quantitative
terms as far as possible; describing all reasonable alternativ es, including preferred
and ‘no project’ options.
Mitigation Measures Design: Design to avoid, reduce and minimize adverse
environmental impacts and enhance beneficial impacts
Public Consultation and Participation: At various stages in the assessment process
to ensure quality, comprehensiveness and effectiveness of the stakeholders’
participation and to adequately reflect/address their concerns.
Preparation of Environmental Management Plan (EMP): Determination of specific
actions to be taken during engineering design and construction stages to minimize
or mitigate negative impacts and enhance the positive impacts.
Report Preparation: Summary of all information obtained, analyzed and interpreted
in a report form; also include a non-technical summary including methods used,
results, interpretations and conclusions made.
IEE should incorporate physical, chemical, biological, social, economic and cultural
aspects/environment.

48
Approval of municipal
investments
Implementation
Post-Construction
Similarly, the key steps for managing any potential adverse environmental and social impacts for sub-
grant activities under the community based initiatives and pro-poor business development initiatives
windows applicable (only for works) are outlined in the table below:
Table 6. Key Steps for Managing Environmental and Social Issues (Community Based Initiatives
and Business Development Grant Window)
Stages in
Sub-grant Cycle
Sub-grant calls for
proposals
Sub-grant Identification &
proposal screening stage
Sub-grant preparation
(for sub-grant that do not
require detailed
assessment, i.e. only
require EMP)
Project Design
(for sub-grant that require
detailed assessment), i.e
for IEE
Since projects requiring
EIA are included in the
exclusion criteria for
PURP, EIA details are
not mentioned here.
PMT/PSC to review and approve Technical and Safeguard Report/s (for IEE review
and approval will be through MoUD; IEEs also need to be submitted to the Bank for
No Objection). The Review of report/s to assess whether potential issues have been
adequately addressed to facilitate the decision-making process- decides if project
should proceed, or if further-alternatives must be examined or totally abandoned.
Integrate EMP or IEE into engineering design and bidding documents if works are to
be carried out by contractors.
PMT/PSC to orient / train the Contractor/Users Committee and other field staff on
EMP/IEE requirements.
PMT/PSC to supervise, monitor EMP and IEE compliance (if contractor is used,
environmental and social clauses should be part of bidding documents. Monitoring
by the supervising engineer/or LSMC/or by other related entity should be
mentioned)
PMT/PSC to take corrective actions, as and if necessary
LSMC staff to carry out post-construction operations and maintenance in line with
EMP/IEE. the concerned department of municipality
Steps in the Assessment Process
PMT to issue calls for proposals specifying eligibility requirements, as well as including a list
of excluded activities. The call for proposals will include sub-grant application form and
safeguard screening checklists (Project Operational Manual (POM) Annex 2 and ESMF
Annexes 4-6).
Sub-grant applicant to carry out environmental and social screening to determine key issues
and appropriate selection of site with support from the PMT/PSC; the screening will be
integral part of the sub-grant application to be submitted to the PMT.
PMT/PSC to carry out field verification in collaboration with the sub-grant applicant to
determine whether exclusion criteria as specified in the calls for proposals have been
adhered to.
Sub-grant recipient to carry out consultations with key stakeholders.
Sub-grant proponent responsible for carrying out EMP for sub-grant not requiring detailed
assessment (Category II projects) following approval of the proposal and before the signing
of the grant agreement. The PMT/PSC will provide technical and financial support to the
sub-grant recipient with the preparation of the EMP.
The grantee will be responsible for delivering the IEE following approval of the proposal and
before the signing of the grant agreement with LSMC to determine level and scope of EA.
The PMT/PSC will provide technical and financial support to the grantee with the preparation
of the IEE. ToR for IEE and IEE should be approved by relevant line ministry (MoUD).
Preparation of IEE to include steps listed below
Baseline Data Collection: Identification of environmental and socio-economic
conditions.
Environmental Impact Prediction/Assessment: Assessment of impacts in terms of
characteristics such as magnitude, extent, duration and significance in quantitative
49
 terms as far as possible; describe all reasonable alternatives, including preferred
and ‘no project’ options.
Mitigation Measures Design: Design to avoid, reduce and minimize adverse
environmental impacts and enhance beneficial impacts.
Public Consultation and Participation: At various stages in the assessment process
to ensure quality, comprehensiveness and effectiveness of the st akeholders’
participation and to adequately reflect/address their concerns.
Preparation of EMP: Determination of specific actions to taken during engineering
design and construction stages to minimize or mitigate negative impacts and
enhance the positive impacts.
Report Preparation: Summary of all information obtained, analyzed and interpreted
in a report form; also include a non-technical summary including methods used,
results, interpretations and conclusions made.
IEE should incorporate physical, chemical, biological, social, economic and cultural
aspects/environment.
Sub-grant safeguard PMT/PSC to review and approve Safeguard Report/s (for IEE review and approval
assessment approval will be through MoUD). The review will aim to assess whether al l potential safeguard
issues have been adequately addressed to facilitate the decision -making process,
and decide whether the sub-grant should proceed, or if further-alternatives must be
examined or totally abandoned.
Sub-grant proponents to integrate EMP into engineering design and bidding
documents with support from PMT/PSC. Approval of safeguard assessment is a
condition for signing the sub-grant agreement. The EMP/IEE is integrated into the sub-
grant agreement between the municipality and the sub-grant recipient.
Implementation PMT/PSC to orient/ train the sub-grant recipient and other field staff on EMP/IEE
requirements.
Sub-grant recipients to monitor and regularly report on EMP/IEE compliance with
support from PMT/PSC.
PMT/PSC to carry out regular field verifications and take corrective actions, as and
if necessary.
Post-Construction Sub-grant recipients to carry out post-construction operations and maintenance in
line with EMP/IEE with support from the PMT/PSC.

50
 CHAPTER VI: INFORMATION AND CONSULTATION FRAMEWORK

The information and consultation framework is intended to lay out the way in which information will be
provided to the project implementers and beneficiaries and also how consultations will be held during
PURP implementation. Its purpose is to ensure social and environmental issues are effectively
addressed by the project in a transparent and participatory manner. The primary responsibility for the
implementation of information and communication strategies lies with the PMT. The details are
elaborated below.

6.1 Information and Consultation Framework for Municipal Investments and Sub-
grants of PURP
Effective public consultation will be needed from the earliest (planning) stages of the project. Input from
relevant stakeholders will be essential especially during the identification of municipal investments, sub-
grant proposal preparation, and implementation phases of the municipal investments and sub-grants.

6.1.1 Identify and Analyze Potential Stakeholders to Understand their Interest and
Needs
Each stakeholders group plays a distinct role in the planning and implementation of the municipal
investments and sub-grants. The comprehensive participatory consultation process therefore needs to
be undertaken at the start of the process to identify all potential project stakeholders, as well as their
specific areas of interest and their specific needs. Stakeholders’ identification and analysis need to
continue throughout the project cycle and remain dynamic. The relevant types of stakeholders are the
following:

 Users and beneficiaries of the municipal investments and the sub-grants;

 People likely to be adversely affected by the municipal investments and sub-grants, directly or
indirectly, in any way;
 Poor and vulnerable groups, women groups, and professional/occupational groups;
 Government agencies, and government officials at national, regional, and ward level;
 National and international non-government organizations and donor agencies, community based
organizations and community leaders.

6.1.2 Engage Stakeholders Systematically Throughout the Design and

Implementation Stages
Communication and consultations should include, but not limited to, the identification and record of the
following:

 Based on the stakeholder analysis, stakeholder groups to be engaged in participatory processes;

 Specific decisions being made through participation, and how;
 Anticipated breadth and depth of stakeholder engagement at each stage of the project cycle;
 How will participation be linked to social and gender strategy, management plans, resettlement
planning and other national and safeguard requirements;
 How will participation be used during implementation;
 What participation methods will be used, including timeline, sequence and roles and responsibilities
for participatory activities.

51
Important aspects of the communication strategy include communication objectives; challenges and
obstacles to achieving these objectives; target audiences; nature of communication messages;
communication channels; and aspects required for successful implementation of the strategy such as
timelines, responsibilities and resources.

All communication products targeting communities and their representatives including civil society
groups and ward officials should be available in languages appropriate and understandable by the target
audience.

6.1.3 Inform Stakeholders and Accountability Mechanism

Participation is central to the safeguard policy statements and will be facilitated, as and if required, in the
project wards by PMT/PSC. Specific participation requirements related to the IPs such as broad-base
indigenous consent (OP 4.10) need to be observed. Participation needs to be gender inclusive and
responsive, and tailored to the needs of disadvantaged and vulnerable groups.

6.2 Present Status of Consultations Completed at PURP

6.2.1 Consultations during Prefeasibility Study and Preparation of ESMF
Consultations with key stakeholders have been an integral part of the ESMF preparation. During the
preparation of ESMF, a series of consultations was held at the LSMC and the four PURP recipient wards
namely 16, 18, 21, 22. The details are as follows:

 Dhapagal, Ward no 16, LSMC- 26 April, 2013

 Ward office, Ward no 21, LSMC- 28 April, 2013
 AlokHiti, ward no 22, LSMC, 29 April 2013
 Kayagunani, ward no 18, KSMC, 29 April, 2013

The participants at, and outcomes of the consultation meetings are presented in Annexes 8 and 9,
respectively. Such type of consultations, workshops, and interactions shall be continued during the
PURP implementation cycle. This type of consultations will be the forum for sharing information about
the project’s objectives, scope, alternative design options, and stakeholders’ perspectives regarding
PURP.

6.2.2 Modes of Future Consultations

A range of formal and informal consultative methods will be carried out for all municipal investments and
sub-grants including, but not limited to: focus group discussions (FGDs), public meetings, community
discussions, and in-depth and key informant interviews; in addition to the socio-economic surveys
required as part of the project M&E framework. Consultations will be held with special emphasis on
vulnerable groups. Encouraging public participation in consultations informs the public and serves as a
venue for the public to express their opinion on priorities which the Project should address.

The key stakeholders to be consulted during municipal investments and sub grant preparation, RP/IP&
VCDP implementation, and program implementation include:

 All Affected Persons (APs,) including vulnerable households;

 Project beneficiaries;

52
 Political party representatives, community leaders, and representatives of community based
organizations;
 Representatives from recipient wards;
 Local NGOs;
 Officials of LSMC and relevant government agency representatives.

In the local cultural and social set up women do not play an active part in decision-making regarding
municipal services and their standards, although women with relatively higher awareness level (e.g.,
social mobilizers, GoN employees, health workers, teachers, etc.) manage to express their concerns.
Ideally separate meetings will be held for women, but if it will not be possible to held separate meeting
with women, women will be consulted through CBOs or NGOs,

The PMT will ensure that views of APs, particularly those who are vulnerable, related to the project are
looked into and addressed. The PMT will ensure that APs consulted are informed of the outcome of the
decision-making process, and will confirm how their views were incorporated.

6.3 Information Disclosure and Dissemination

This ESMF will be made available in Nepali language to PURP recipient wards namely 16, 18, 21, 22 of
LSMC. Copies of these documents will be provided to any requester by charging the photocopy cost.
The draft and final ESMF will be disclosed in the websites of LSMC and made available to wards.
Information dissemination and consultation will continue throughout program implementation.

For all municipal investments and sub-grants, information will be disseminated to wards at various
stages. In the initial stage, the LSMC will be responsible for informing potential wards and the general
public of the project about the components of the project through leaflets and publication in local media
outlets and newspapers. The PMT will conduct consultations and disseminate information to all APs
during these initial stages to create awareness of the project.

53
 CHAPTER VII: GRIEVANCES REDRESS MECHANISM

Through a participatory process, grievances are expected to be minimized. However, it is necessary to

establish an effective grievance redress mechanism to address complaints/grievances that may arise
related to the project in general including but not limited to environmental and social issues. Any
grievances and objections will be referred to the project Grievances Redress Committee (GRC).

The structure of GRC shall be as follows:

1. CEO of LSMC, Chairman of GRC

2. Project Manager, PMT; Member secretary of GRC
3. Representative from project beneficiaries, member of GRC
4. Representative from Kathmandu Valley Development Authority (KVDA), member of GRC
5. Representative, District Administration Office, Lalitpur, member of GRC

The GRC needs to be established as soon as the project is effective. The representative from project
beneficiaries will be nominated by the chairman of the GRC for a period of one year. A complaint cell will
be established under the PMT to collect complaints and transmit them to the GRC. The affected
persons/communities can register their grievances through multiple ways including locked boxes at the
project office that can only be opened by a designated person, email, a designated telephone number,
and submission of complains at the wards etc. The affected persons can also register their grievances at
the complaint cell established at LSMC. Any affected family or person can approach the GRC directly
regarding issues related to environmental and social issues including temporary impacts and impacts
during construction. Handouts providing details of the structure and process for redressing grievances
will be distributed in the project area through the ward offices. All cases will be registered, categorized
and prioritized by the complaint cell. The GRC will meet in a monthly basis to discuss the petitions
submitted by the people/community. If any member (including CEO) is concerned, then the grievances
will be forwarded to the Steering Committee secretariat (KVDA). The GRC will be regularly supervised by
the World Bank, including reviews of documentation.

54
 CHAPTER VIII: MONITORING AND EVALUATION

8.1 Monitoring and Evaluation

A Monitoring & Evaluation (M&E) system will be established for the project, and safeguard compliance
will be integral part of the project M&E. Both an internal and periodic external monitoring is proposed to
ensure ESMF implementation. Internal monitoring will be carried out by the PMT, focusing on outcomes,
outputs and implementation progress for each municipal investment or sub-grant. The sub-grant
recipients will submit to the municipality regular sub-grant progress reports during implementation.

Similarly periodic external monitoring with external review using quantitative and qualitative methods
shall be followed. The ESMF evaluation will be mid-term and end term and both have to be third party
evaluation.

The table showing indicators, methods, and responsibilities for social and environmental safeguard
monitoring in PURPPURP is highlighted below. The frequency will be decided by PMT as needed.

Indicators Methods Responsibility

Number of businesses /households temporarily Review report, on the group field PMT /PSC
disrupted verification

Adherence to ESMF requirements Review of report, direct observation PMT /PSC

Adherence to mitigation measures (social and Review of report, field verification PMT /PSC
environmental)

ESMF requirements incorporated in tender and Review of tender/contract document PMT/PSC

bidding documents as needed

Responsibility of Monitoring: The environmental and social expert of PMT is responsible for internal
monitoring of ESMF. The mid-term and end term monitoring shall be done by external experts.

55
 CHAPTER IX: CAPACITY BUILDING

Since Lalitpur Sub-metropolitan City does not have direct experience with the implementation of World
Bank-funded projects, the ESMF has included capacity strengthening measures.

9.1 Training
Training is an important component for developing capacities. Appropriate and timely training to the
officials with regard to various issues can bring a positive change in the functioning of the staff. Apart
from training in generic areas such as human resource management, information management,
government functionaries require training in handling certain specialized tasks pertaining to
environmental and social issues. The PMT will identify the training need assessment at LSMC and
suggest the training packages including their modality of operation.

Potential training areas are:

 Earthquake resistance design of traditional buildings

 Hazards of crafts works
 Orientations on ESMF
 Orientations on legal requirements
 Preparing EMPs and ECOPs
 General Introduction to EA and Management

9.1.1 For Environment and Social Officer of LSMC

Training on Environmental Assessment, Appraisal and Management, Social Safeguard and Issues

The environmental and social officers of LSMC would require capacity building inputs to help them
understand the environmental risks associated with PURPPURP sub-grants and the appropriate
measures that can be taken to mitigate adverse impacts on the community. In addition, they would
require training to equip them with skills they can use to appraise sub-grants on key environmental
criteria and ensure that they are environmentally sound. Environmental assessment and management
training should also be provided to them.

9.1.2 For Municipal Staff

Training related to environmentally sound technologies, tools and techniques for conducting
environmental surveys. Trainings on EAs, EPA/EPR requirements, and requirements stipulated by
sectoral legislations shall be provided during the trainings.

Training on Environmental and Social Assessment of PURPPURP sub-grants will enable the municipal
staff to understand the environmental risks attached to different sub-grants and the appropriate
measures that can be taken to mitigate adverse impacts on the community. This would not only enable
them to prepare environmentally sound sub-grants but also help them put in place strong monitoring and
management plans.

56
9.2 Training on Preparing Communication Strategies
A well-developed communication strategy needs to be in place to realize better results in implementing
the projects. The PMT will have to develop and effectively implement their own consultation and
communication strategy. Successful implementation of sub grant would depend, to a large extent, on the
ability to maintain close contact with the community in the sub-grant area. For this purpose the PMT
needs to develop consultation plans along with the help of recipient wards. Such a communication
strategy would help in better communication, clearer understanding of social problems, better service
delivery, easier conflict resolution and grievance redress. Training modules may be developed to help
municipalities draft and implement appropriate consultation strategies. Experts from the PSC will assist
the PMT in preparing this training.

57
 Annex 1: Steps and Requirements for IEE Studies for PURP

Task 1: Collection and Review of Project Baseline data Task 2: Task 3: Task 4:
(EPR, Rule 5, Rule 7 and schedule 5, IEE Guidelines)  Preparation of ToR Review and approval of ToR as per Fifteen days Public Notification in
Activities:  Submission to concerned EPR Rule 5 (3) National daily Newspaper as per
ministry (MoLD) as per EPR-
 Collection and review of project related sectoral legal EPR Rule 7 (2)
Rule 5 (1)
documents, institutional arrangements and capacities Activities:
 Collection and review of project documents, layouts,
 Review by the client as Activities:
DESK STUDY

magnitude of operations and considered alternatives Activities:

applicable with  Notice publication
 Collection and review of topography, geology, forest,  Review and assessment of
recommendations
soil, geomorphology maps environmental baseline
 Presentation to concerned
 Collection and review of the physical, biological and  Preparation of Terms of Responsibility: Client/Consultant
ministry by client
socio-economic and cultural and archeological baseline Reference
 Review by ministry and
environmental conditions.  Submission to MPPW through
approval with or without
 Identification of data gaps and study focus areas the client
modifications
 Development of tools for field survey and analysis for
physical, biological and socio-economic environments. Responsibility: Consultant/Client
 Preparation of field survey and mobilization Responsibility: Ministry / Client

Responsibility: Consultant/PMT Deliverables: ToR Document

Deliverables: Approved ToR
UD
SK

Y
T
E

Task 5: Notice posting, Public Deed of Enquiry and Task 6: Field investigation, interaction with local people and other stakeholders and collection of baseline data as per EPR Rule 7
interaction with client and the Stakeholders as per EPR Rule- and schedule 5, IEE Guidelines for all alternative routes.
7
Activities:
Activities:  Field investigation on physical and chemical environments using applicable tools (direct observation and mapping,
monitoring, public interactions, past history etc) for erosion, sedimentation, landslides, geomorphic processes, land forms,
FIELD STUDY

 Public deed of enquiry

geology, soil, hydrology, meteorology, air, noise, vibrations, land use, water quality, water pollution etc.
 Meetings with the Client
 Field surveys on biological (terrestrial and aquatic) environments using applicable tools (direct observation and mapping,
 Obtain relevant documents from the client
sampling (plot and specimens), public interaction, past records, questionnaires surveys and interviews with knowledgeable
 Notification to the stakeholders at local level for issues
persons etc) for forest types and coverage, vegetation species, aquatic species, rare, endangered, indigenous species,
of road construction
ecological value, biodiversity value, habitat, medicinal plants, etc.
 Interaction with key persons
 Field investigations for socioeconomic and cultural environment using applicable tools (Rapid Rural appraisal, participatory
 Collection of recommendation letters from DDC,
Rural appraisal, questionnaires, interviews and public consultations, cadastral surveys, social mapping, photographic records
Municipalities and VDC, if any.
etc.) for population and dynamics, social development and institutions, occupation and employment, earning and
expenditures, cultural values, indigenous or tribal population etc.
Responsibility: PMT/Clint/Consultant
Responsibility: PMT/Clint/Consultant
UD
D
E

Y
L

T
I

58
 Task 7: Data Analysis and interpretation.
Activities:
 Alternative assessment with no project, route or section,
ANALYSIS AND REPORTING
design and construction approach, time schedule and
process, resources, site specific etc.)
 Impact prediction, beneficial and adverse impacts,
quality of data, key data gaps and uncertainties
associated with predictions
 Mitigation alternatives to identified the impacts, residual
impacts that cannot be mitigated, opportunities for
environmental enhancement
 Monitoring indicators and methods of monitoring
 Environmental Management Action Plan: mitigation
planning with details of work programs and schedules,
responsibilities, capital and recurrent costs, institutional
and training requirement; and Monitoring Planning with
details of type of monitoring, responsibility, cost and any
other institutional and training requirements.
Responsibility: PMT/Clint/Consultant
Task 8: Preparation of Draft IEE report and submission as
per EPR Rule 5, 7 and 10 and schedule 5
Activities:
 Preparation of Draft IEE reports incorporating all
concerns of stakeholders as obtained in the public
interaction and recommendation letters from DDCs,
Municipalities and VDCs.
 Presentation of IEE report and seek comments and
suggestions
 Submission of Draft IEE report to the client for
approval
Responsibility: PMT/Clint/Consultant
Deliverables: Draft IEE Report
Task 9: Review and approval of IEE as per EPR Rule 11
(1)
Activities:
 Review of the IEE study report by concerned
ministry
 Approval of IEE by ministry with or without
modification
 Submission of final IEE report by the
consultant/PMT to Client with electronic version.
Responsibility: Review and approval by concerned
ministry, report preparation and submission by the
PMT/consultant.
59
 Annex 2: Project Environnemental Management Plan (EMP)
(Example of an EMP)

Table of Content For PURP EMP Preparation

CHAPTER: 1
PROJECT DESCRIPTION, Components and Environmental Management Plan

1. Introduction

1.1 Background

1.2 Project Scope

1.3 Project Activities

The project activities may be categorized mainly into three phase which are activities in
(i) Design and Bidding Phase
(ii) Construction Phase
(iii) Operation Phase

CHAPTER: 2

2.1 Scope of Environmental Management Plan (EMP)

2.1 Objectives of Environmental Management Plan (EMP)

The basic objectives of the EMP are to:

 Ensure that all mitigation measures and monitoring requirements will actually be carried out at
different stages of project implementation and operation - pre-construction, construction and
operation and maintenance;
 Recommend a plan of action and a means of testing the plan to meet existing and projected
environmental problems;
 Establish the roles and responsibilities of all parties involved in the project’s environmental
management;
 Describe mitigation measures that shall be implemented to avoid or mitigate adverse environmental
impacts and maximizing the positive ones;
 Ensure implementation of recommended actions aimed at environmental management and its
enhancement; and
 Ensure that the environment and its surrounding areas are protected and developed to meet the
needs of the local people, other stakeholders and safeguard the interests of the common people.

2.2 Implementation of EMP

2.3 Project Impacts

The anticipated impacts due to project in and mitigation measures are mentioned in table 1 attached with
this document.

2.3.1 Anticipated Environmental Impacts and Mitigation Measures

60
Environmental impacts on the physical, biological, and socio-economic and cultural environments during
the pre-construction, construction and operation and maintenance phases are discussed here in detail
with the mitigating measures.

The summary of the anticipated environmental impacts and the mitigation measures are given in matrix
form attached with this document

2.3.1.1 Pre-construction Phase

a. Environmental impacts due to project design

2.3.1.2 Construction Phase

a. Environmental impacts due to project construction

i. Physical Environment (Examples)

Water and land pollution
Pollution due to air, noise and vibrations

ii. Biological Environment

iii. Socio-Economic and Cultural Environment

Reinstatement of damaged community services and infrastructure
Influx of outside workforce, money and unwanted activities
Occupational Health and Safety (OHS)
Traffic management

2.3.1.3 Operational Phase

3.0 Mitigation Measures:

The mitigation measures shall be designed during the construction and operation phases of the project
to minimize the adverse environmental impacts. The mitigation measures along with the item wise
mitigation cost are prepared in EMP. Sample a mitigation measure is shown below.

The envisaged impacts due to implementation of PURP component could be grouped into positive and
adverse impacts. The goal of mitigation measures is to maximize the positive impacts and minimize or
reduce the adverse impacts.

The proposed mitigation measures for predicted adverse impacts could be grouped into three categories
as Physical, Biological, Socio-economic and cultural environment. Such impacts could be further
classified as impacts during the construction stage and operation stage.

Construction Phase Impacts

Physical Environment
There will not be huge excavation activities during sub project construction. If any
valuable archaeological assets are identified it will be managed as per DoA rules and
regulation.

S.N Identified Impacts Sample Suggestive Mitigation Measures

1 Impacts associated with management of The excavated materials shall be used as construction material (as
excavated materials applicable). The unused materials will be sold to needy, non sellable
items shall be disposed properly in identified areas.
2 Impacts of air pollution (particularly dust) Vehicle speed control and sprinkling of water in road and in

61
S.N Identified Impacts Sample Suggestive Mitigation Measures
and its impacts on surrounding environment construction site in a regular basis. Use of old and worn out vehicles
shall be avoided to control air pollution.
The construction material shall be covered during the transportation
of materials.
3 Impacts related to noise created by the Night time construction work shall not be allowed. Vehicle speed
vehicle used for the transportation of control and maintained vehicle shall be used. Use of old and worn
construction material out vehicles shall be avoided to control noise pollution.
4 Impacts related to stockpiling of Construction material shall be stored/stockpiled in designated area
construction materials (fenced and secured, covered).
5 Impacts related to traffic obstruction and Adequate traffic signs, warning signs, and scheduling of transport
traffic management operator in off office hours to avoid traffic congestion and
inconvenience to people.
6 Possibility of contamination of water source Regular water sprinkling in approach road, construction sites.
due sub project construction activities. Discourage use of direct discharge of water in to water bodies
without proper treatment.
7 Impacts related to health and safety of Use of safety signs in places, fencing of active work
workers, and visitors /worshippers places/construction sites provision of PPE to workers.
8 Impacts related to obstruction and Adequate signs shall be used, construction materials shall be stored
disturbances to visitors/worshippers of in designated areas with proper fencing, and construction work shall
temple/shrine be planned in such a way that it won’t stop worshippers.
9 Impacts related to liquid waste, solid waste, Implementation of solid and liquid waste management technology.
and sewage management during Prohibition of littering and illegal dumping of waste in premises and
construction phases of the project its surroundings.
10 Impacts due to construction materials Proper selection of construction material and paint which won’t effect
(including chemicals) in old artifacts, gold, by any means to old artifacts, valuable items (like gold/gold platings
etc. etc). DoA norms shall be strictly followed up.
11 Impacts to recharge areas/aquifer. PURP recipient wards no 16, 18, 21, 22 of LSMC has many stone
spouts which has particular recharge areas, special care and
protection should be made to such areas during construction and
operation of PURP.

5.1.2 Biological Environment

S.N Identified Impacts Sample Suggestive Mitigation Measures
1 Impacts related to disturbance to flora and Trees should be protected and its cutting/removal is strictly not
it’s cutting/removal during construction recommended.
period

5.1.3 Socio-economic, Cultural and Archaeological Environment

S.N Identified Impacts
1 Disturbance to local residents due to
obstruction to their access, pollution etc
2 Pressure on local infrastructures due to
influx of workers
3 Obstruction to worshippers/pilgrims/visitors
for entering temple premises during
renovation of temple
4 Issues related to chance find during the
Sample Suggestive Mitigation Measures
Prior information dissemination to the public regarding the nature,
schedule of work in advance.
Timely completion of work to minimize disturbance.
Adherence to pollution control measures as elaborated above.
Record keeping of workers
Provide orientation and training to workers for maintaining social
harmony, prohibition of ill social behaviors (alcohol, gambling, etc.)
Local people shall be engaged in construction as per their skills and
qualifications.
The access shall be provided to the priest of the temple/shrine for
certain hours of the day. Due to this arrangement, the priest and
visitors can visit the temple.
Only items required for replacement shall be recorded and replaced.

62
S.N Identified Impacts Sample Suggestive Mitigation Measures
excavation, cultural and archeological The new construction in any means shall not deteriorate the
issues during the renovation of “originality” of the temple”.
temple/shrine or while implementing PURP DoA norms for materials, size/shape, shall be followed. Encourage
programs in 4 wards of LSMC. representatives from DoA to be present during the excavation period.
Other responsibility of the LSMC are as follows:
Ancient Monument Preservation Act, 1956 of GoN shall be followed
in addition to the following requirements.
(ii) The municipality shall develop a protocol for use by the
construction contractor in conducting any excavation work,
to ensure that any “chance finds” are recognised and
measures are taken to ensure they are protected and
conserved. Part of this protocol will be that when “chance
finds” of archaeological material occur, all excavation work
at the site shall stop until the DoA can determine if the
site needs to be documented or scientifically excavated
before work continues.

(ii) All materials used in the repair and restoration of the temple
and its surroundings (plinths, walls, stairs, paving etc.) shall
be of traditional materials (e.g., lime mortar instead of
cement, Jhingati roof tiles, dachi brick etc.) and be of high
quality. The DoA will provide specifications for such
materials as wood (for columns, rafters, struts), brick or
stone (for paving, stairs, walls, plinths), lime mortar, and roof
tiles, that shall be followed. Materials shall be checked at
pre-shipment and at delivery for compliance with
specifications.

(iii) The construction techniques (joints, fasteners etc.) shall be

consistent with the original temple construction techniques.
While the design of parts that must be replaced (e.g., struts,
column bases) should be consistent with and match the
existing temple in scale, design, level of detail, best practice
would be to clearly indicate the difference between old and
new elements.
(iv) The materials and construction techniques shall be of such
quality that they shall not require major repairs or
refurbishment and should be sustainable over time with little
beyond routine maintenance.
(v) Craftsmen with knowledge and skills applicable to the style
and age of the temple design shall be employed to do the
traditional repair and restoration activities (e.g., wood
carving, mortar preparation, replacement of joists, etc.).”

Operation Phase Mitigation Measures (prepared as per specific project for PURP)
 Physical Environment
 Biological Environment
 Socio-economic Environment

Project Environmental Management Plan Structure and Stakeholders Responsibility

The Project Environmental Management Plan of PURP is prepared to shows linkages with different
parties to be involved directly or indirectly during the different phases of project development and

63
operation in compliance with the existing Act and Rules. Overall project environmental management is
the responsibility of LSMC.

ENVIRONMENTAL ENHANCEMENT AND MITIGATION MANAGEMENT PLAN

Environmental management actions to be undertaken and to be adopted for the realization of
environmental enhancement and environmental mitigation for construction and operation phases are
presented in the Table-A. The Environmental Enhancement and Mitigation Management Plan (Table-B)
briefly describes impacts, description of enhancement/mitigation action required, individual or agency
responsible, national standards and guidelines, timing of actions, responsible authority, and tentative
financial requirements.

ENVIRONMENTAL MONITORING MANAGEMENT PLAN

Three types of monitoring are envisaged in the plan, namely: Baseline Monitoring, Compliance
Monitoring and Impact Monitoring. Since the required databases for the environmental baseline are
already collected by the IEE study, the project is not envisaged to require Baseline Monitoring. The
compliance monitoring comprises two parts; the first is the compliance to the enhancement actions and
second compliance to mitigation actions including the corrective actions issued.

The impact monitoring in the plan relates to only those measurable indicators in the socio-economic,
Cultural/Physical, Chemical and Biological environments. For each of the monitoring indicators,
monitoring methods, frequency of monitoring, responsible parties along with the required cost estimates
have been estimated.

Table A: Environnemental Enchantement Management Plan

National
Standards
Individuals Competent Environmental
or Timing of
Impact Enhancement Measures responsibl Authority/ Enhancement
SN Guidelines/ Actions
e Agency Costs (NRs)
Approved
Documents
I Socio-economic Environment (construction an operation phase )
Construction
Impact on  Promote local for the
LSMC Approved and
1 local project related economic No cost
/Contractor IEE operation
Economy opportunities
phases
 Ensure that the contractor
of the project give priority
in the project employment
Impacts of
for project affected
Construction
people, project affected Approved Construction
2 on Local LSMC No cost
VDC people (particularly IEE phase
Employment
Dalits and Janajatis,),
Opportunities
project district people and
Nepalis in preferential
order
Impacts of
Construction  Direct engineers, and
Construction
on Local contractors to purchase
Approved and
3 Produce locally produced products LSMC No cost
IEE operation
Marketing/ (milk, ghee, vegetables)
phase
Business for camp consumption
Opportunities
Impacts of
Construction  Encourage universities
and Improved and educational Const. and
Approved
4 Access on institutions for visit to the LSMC Operation No cost
IEE
Local project area as phase
Tourism educational tourism
Opportunities
Impacts of  Promote and encourage
Construction local entrepreneurs for Const. and
Approved
5 on Local the development of LSMC Operation No cost
IEE
Subsidiary subsidiary industry for the phase
Industrial support of the project

64
 National
Standards
Individuals Competent Environmental
or Timing of
Impact Enhancement Measures responsibl Authority/ Enhancement
SN Guidelines/ Actions
e Agency Costs (NRs)
Approved
Documents
Opportunities
 Ensure that the engineers
Impacts of
and contractors pay all
Construction
local revenues to the Const. and
on Local Approved
6 local governments such LSMC Operation No cost
Government IEE
as for rental revenue, phase
Revenue
aggregate extraction
opportunities
revenue, etc.
II Cultural and Physical Environment (Construction and Operation Phase)
III Chemical Environment (Construction and Operation Phase)
Impacts of  Educate the local NGOs,
Environmen school teachers, and
tal students on the air,
Awareness water, and land quality 200000.00
Const. and
for the Air, management approach Municipalit Approved
1 Operation
Water and of the project by the y IEE
Phase
Land project environmental
Quality staff
Manageme
nt
IV Biological Environment (Construction and Operation Phase
1

Table B: Mitigation Measures and Responsible Agency

Issue Impacts Environmental Mitigation Responsible Timing of
no. Measures and Projected Cost Agencies Action
Construction/
Operation
Impacts on Physical Environment

1. Disposal of solid waste, Use for land recovery and land filling LSMC and During and after
waste materials and concerned ward construction
construction spoils. period
2. Degradation of water quality, Treatment facility during construction LSMC and During
air quality & noise level due period concerned ward construction
to project construction Use of personal protective equipment period
activities. for workers.
3 Occupational Health Implementation of OSH activities. LSMC and During
Distribution and encouragement for concerned construction
Hazard and Safety. the use of safety hats, shoes, follow- ward/stakeholders period
up of safety regulation, well-
communication of construction safety
instructions at all levels,
11 Impacts on sanitation and Workers are not allowed to stay over LSMC and After
health of the community due night out from the camp. Moreover concerned construction
to increase in disease vector awareness program will be launched ward/stakeholders
and transmission of disease to prevent from the STDs .
from outside workforce.
26 Reducing the land use. Appropriate route selection to Municipalities and Construction and
minimize impacts Consultant, and Operation
Maximum use of existing road and Contractor phases
public land
Collection of spoils and its
management in scientific way

Site Specific EMP Matrix for PURP

Name Likely Suggested Time
Env
of Sub Location Potential Mitigation BoQ/Cost of Responsibility
Issues/Significance
Project Impacts Measures Action

65
 Format for Environmental Mitigation Measures as per EMP
Identified Recommended Mitigation and
S.N Name of Sub Project Remarks
Issues/Significance Enhancement Measures

66
 Annex 3: Format for Social Impact Assessment
For sub-grants involving resettlement impacts, the social officer of LSMC with support from social
safeguard specialist of PSC or contracted consultant will undertake social impact assessment (SIA) for
each identified municipal investments and/or sub-grants, on the basis of preliminary technical designs.
These surveys will help in determining the magnitude of displacement, prospective losses, better
targeting of vulnerable groups, ascertaining actual costs of resettlement, and preparing and
implementing a resettlement plan.

No involuntary (temporary and permanent) land acquisition is allowed under the project. Land
acquisition costs cannot be funded with the JSDF grant.

Census Survey for Project Affected Persons

The purpose of the survey is to register and document the status of potentially affected persons within
the direct impact zone of the project activities. The census survey will cover 100 percent of PAPs. The
census survey will provide a demographic overview of the population, and will cover people's assets and
main sources of livelihood. The survey of the direct impact zone will cover the following: (i) boundaries of
the site identified for the proposed subproject elements in case of subprojects involving new
interventions, (ii) proposed right-of-way (RoW) boundaries which will include titleholders and non-
titleholders occupying the proposed RoW, (iii) current occupants of the site including businesses,
vendors, whether titleholders or otherwise and experience temporary disruptions during construction,
and (iv) losses of PAPs.

Checklist for Census, Socioeconomic and Replacement Cost Surveys

Census The census (also known as a detailed measurement survey – DMS) of lost assets will collect data on
the affected assets from 100% of APs following detailed engineering design. The data collected during
the census will constitute the formal basis for determining PAP entitlements and levels of
compensation. For each AP, the scope of the data will include:
 Total and affected areas of land, by type of land assets;
 Total and affected areas of structures, by type of structure (main or secondary);
 Legal status of affected land and structure assets, and duration of tenure and ownership;
 Quantity and types of affected crops and trees;
 Quantity of other losses, e.g. business or other income, jobs or other productive assets,
estimated daily net income from informal shops;
 Quantity/area of affected common property, community or public assets, by type;
 Summary data on PAP households, by ethnicity, gender of head of household, household size,
primary and secondary source of household income viz-a-viz whether household is headed by
women, or consists of marginalized ethnic groups (Dalits, Freed Kamaiya), Muslims/religious
minorities, elderly, disabled, indigenous people (highly marginalized, marginalized, and,
disadvantaged IPs), below poverty line of NRs 3000/month), landless or households losing 50%
of total landholdings (particularly those totally dependent on agriculture for livelihood), as well as
remote villages.
 Identify whether affected land or source of income is primary source of income; and
 AP knowledge of the subproject and preferences for compensation and as required, relocation
sites and rehabilitation measures.
Socioeconomic At a minimum, the Socioeconomic Survey (SES) will collect information from a sample of 10% of
Survey Project Affected People (PAP) disaggregated by gender and ethnicity. The purpose of the
socioeconomic survey is to provide baseline data on PAPs to assess resettlement impacts, and to be
sure that proposed entitlements are appropriate, and to be used for resettlement monitoring. The scope
of data to be collected includes:
 Household head: name, sex, age, livelihood or occupation, income, education and ethnicity;
 Household members: number, livelihood or occupation, school age children and school
attendance, and literacy, disaggregated by gender;
 Living conditions: access to water, sanitation and energy for cooking and lighting; ownership of
durable goods; and
 Access to basic services and facilities
Replacement The replacement cost survey (RCS) will be done in parallel with DMS and SES activities by collecting
Cost Survey information from both secondary and primary sources (direct interviews with people in the affected
area, material suppliers, house contractors), and from both those affected and those not affected. The
government rates will be adjusted, as necessary, based on the findings of a Land Acquisition Cost
Fiction Committee (LACFC). Compensation rates will be continuously updated to ensure that PAPs
receive compensation at replacement cost at the time of compensation payment.

67
68
 Annex 4. Involuntary Resettlement Impact Screening & Categorization Form

A. Project Data

LSMC Municipal Investment / Subgrant Title:

B. Screening Questions for Re-settlement Categorization

Probable Involuntary Resettlement Effects Yes No Not Possible Remarks
Known
Will the municipal investment/sub-grant include any physical
construction work?
Does the municipal investment/sub-grant include upgrading or
rehabilitation of existing physical facilities?
Are any municipal invesmtentsub-grant effects likely to cause any
damage/ loss of housing, other assets, resource use?
Is the site for chosen for this work free from encumbrances and is
in possession of the government/Municipality?
If the site is privately owned, will this be obtained through
voluntary donation? (NO LAND ACQUITISION ALLOWED)
Is land for material mobilization or transport for the civil work
available within the existing plot/ Right of Way?
Are there any non-titled people who living/doing business on the
proposed site for civil work?
Will there be loss of /damage to agricultural lands, standing crops,
trees?
Will there be loss of incomes and livelihoods?
Will people lose access to facilities, services, or natural
resources?
Are any vulnerable households including dalits and janjatis
affected?
Whether the affected land/structure owners likely to lose less than
10% of their land/structure area.
If so, are these land / structure owners willing to voluntarily donate
the required land for this sub-grant?
Is any temporary impact likely?

C. Estimates of Specific Impacts

Components Private No of Govt Forest No of No of No of No of Public

of of the land land land land houses shops other Squatters utilities
sub-grant required owners required required affected affected structures affected affected
in Sq, losing in Sq. in Sq affected
Mts. more mts. mts
than
10% of
land
area

69
D. Information on Affected Persons

Any estimate of the likely number of households that will be affected by the municipal investment/sub-grant?
[ ] No. [ ] Yes. If yes, approximately how many? ______

No. of HHs losing <10% of their productive assets (land/ cowshed/shops/economic units)?_______

No. of HHs losing 10% or more of their productive assets? _____

Are any of them poor, female-headed households, or vulnerable to poverty risks? [ ] No. [ ] Yes. If yes,
please briefly describe their situation with estimated numbers of HHs?

Are any vulnerable households including dalits and janjatis affected? [ ] No. [ ] Yes. If yes, please briefly
describe their situation with estimated numbers of HHs?

What are the needs and priorities for social and economic betterment of vulnerable people including dalits
and janjatis who are affected by this municipal investment/sub-grant?

E. Decision on Categorization

After reviewing the answers above, based on the level of risk it is determined that the sub-grant is:
 Categorized as an A project, a full Resettlement Plan is required
 Categorized as a B project, a short Resettlement Plan is required
 Categorized as a C project, no Resettlement Plan is required

Note: Only category B and C municipal investments and sub-grants are expected to be funded under
PURP since no involuntary (temporary and/or permanent) land acquisition is allowed under the project,
and land acquisition costs cannot be funded with the JSDF grant.

___________________________ _____________________________
Prepared by: Approved by:
(Social Development Officer) (Executive Officer, Municipality)
Date: Date:

______________________________
Reviewed by Social Specialist, Grant Facility Administrator:
Date:

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 Annex 5: Environmental Impact Screening & Categorization Form

Instructions for completing screening checklist of PURP Sub- grants

1. The environmental screening checklist is designed to capture and record relevant environmental
information needed for environmental screening of a proposed municipal investment/sub-grant. It also
provides early warning to the municipal investment/sub-grant preparation team about potential
environmental factors, and provides opportunity to address them in time.
2. The screening team (PMT) must be familiar with municipal investment/sub-grant background through
secondary information before walkthrough.
3. During walkthrough the team should held discussion or inquires with communities along the way. Note
a more detailed environmental investigation will follow, if necessary, at the later stage. The method to
be follow during screening walkthrough include; observation, inspection and inquiry with local people.
4. The team must carry topographical map with them, mark important environmental and cultural
features on the map and refer to appropriate section of the checklist. The map should be included as
annex to the screening report.
5. The team should take photographs of areas with environmental and cultural implications, and attach
in the report with caption
6. The team should include summary of the screening findings, listing main environmental issues/
concerns related to sub-grant.

Information to be collected for Screening

o Name of Project (ward and nearby settlement)

o Proposed municipal investment/sub-grant activities including approximate investment required
o Identification of environmental and cultural hot spots in and near project vicinity
o Environmental factors trigger by the municipal investment/sub-grant activity
o Identification of potential impacts, including induced impacts, by the municipal investment/ sub-grant
o Views/ opinions and information provided by different group of stakeholders collected through
community consultations, FGD, and involvement of community (potential of community consensus,
community involvement, or potential conflict).

Project Brief
Name of municipal investment/Sub-grant (ward Settlements
and other identifying features), show in map.
Proposed Work/ Activities, and Approximate Investment
Required. Describe construction and operation phase
activities.
Implementation approach and institutions involved (User
group, contractor, Municipality, Use of heavy machines or
labour-based using hand tools).

Environmental Setting of the Sub-grant locality

B1. Historical/ Religious/ Cultural Sites such as world heritage sites, Durbar squire, temple, Stupas, pati,
historic buildings, etc
Is the municipal investment/sub-grant located in or Yes No
close to world heritage site or its buffer zone?
(Tick)
Is the municipal investment/sub-grant located in or
close to nationally important Historical/ Religious/
Cultural sites? (Tick)
Is there traditional community structure/ Pati/
Temple in or close to municipal investment/sub
grant area? (Tick)
If yes, please provide following information.
Name of sites, Location (in Existing conditions, problems and
map in relation causes of problems:
to sub-grant)

71
 Potential risks to the sites from sub-
grant activities during construction or
operation.

B2. Water Sources/Water Bodies such as traditional stone spout, well, pond, etc.
Is there any traditional water sources (spout, well) Yes No
and water bodies (pond) in or near municipal
investment/sub-grant site (Tick)
If Yes, please provide following information.
Name of Place Location Existing conditions (type, including
(distance from purpose of use, number of users, areas
proposed site) served), problems and causes of
problems:

Potential risks from sub-grant activities

during construction or operation.

B3 Open Public Spaces: play-ground, garden, community event, etc

Is there any Open Public Spaces along or near Yes No
municipal investment/sub-grant sites?
If Yes, please provide following information.
Name of Place Location in Existing conditions (including type,
relation to tentative size, use), problems and
project causes of problems:

Potential risks from Sub grant activities

B4 Community Infrastructures ( water supply, electricity, telephone , streets, lane, cultural show, etc )
Is there a chance of impacts on any Community Yes No
Infrastructures due to the municipal investment/sub
grant? (Tick)
If yes, please provide following information.
Name of Community Infrastructure Location in Existing conditions, problems and
relation sub- causes of problems:
grant

Potential risks from sub-grant activities

during construction or during operation

B5 Schools, health facility and other institutions

Is there institutions such as mentioned above in or Yes No
near the municipal investment/sub grant site? Is
there a chance of impacts on institution due to the
municipal investment/sub grant activities during
construction or during operation? (Tick)
If yes, please provide following information.
Name of institution Location in Existing conditions, problems and
relation sub- causes of problems:
grant

Potential risks from sub-grant activities

during construction or during operation

B6 Cottage industries, factories, etc.

Is there industry or factory in or near the municipal Yes No
investment/sub-grant site? Is there a chance of
impacts on industry or factory due to municipal
investment/sub-grant activities during construction

72
 or during operation? (Tick)
If yes, please provide following information.
Name of industry/ factory Location in Existing conditions, problems and
relation sub- causes of problems:
grant

Potential risks from sub-grant activities

during construction or during operation

B7 Community and settlements: organized community groups/ guthi, settlement of special groups
Is there a chance of affecting community groups, Description Potential problems to
special groups? Location of their settlements in (approximate no. of these settlements due to
relation sub-grant. HH and population, proposed sub-grant
nature and special works activities during
feature/importance/sig construction and
nificance) operation.

B8 Trading and business areas: shops, bazaar areas, open markets

Is there a chance of affecting trading in the shops, Description Potential problems to these
open market, bazar etc? Locations of the shops, (approximate trading areas/ activity due to
open market, bazar in relation to the sub-grant site. number, proposed municipal
nature and investment/sub-grant works
special feature activities during construction and
/importance/ operation.
significance)
B9 Noise & Dust Nuisance
Is there any chance of Noise & Dust Nuisance in Yes No
community due to sub grant activities during
construction or during operation? (Tick)
If yes, please provide following information Existing Existing noise and dust levels
sources of Potential receptors of dusts and noise,
noise and and potential increase in dust and
dusts, nosie.
subproject
activities
causing dusts
and noise,
B10 Tourist area.
Is there a chance of affecting tourist area Description Potential problems to the tourist
and tourism? (popular spots for tourist, sites and tourism due to
tourist walking route, etc) proposed sub-grant works
activities during construction and
operation
B11 Traffic congestion and movement of people
Is there chance of traffic congestions and/ Yes No
or affecting movement of people due to sub
grant activities during construction or during
operation
If yes, provide further information Existing traffic flows Municipal investment/sub-grant activities
during construction or during operation
that may cause traffic congestion or
affect movement of people
B12 Use of Hazardous materials
Is there chance of using Hazardous material Yes No
in the proposed sub-grant? (Tick)

73
 If yes, provide further information List of hazardous Risks of the hazardous material. Is it
materials likely to be permitted under national regulation?
used. WHO Category.
Current practice, and
management.

B13 Induced Impacts

Is there chance of adverse impacts induced by the Yes No
municipal investment/sub-grant activities during
construction or during operation? (such as causing
urban flooding, encroachment into community
property/ open space/
If yes, provide further information Existing Types of induced impacts envisaged.
situation Cause of induced impacts/ sub-project
activity that promote induced impact.

Prepare and attach environmental map of the municipal investment/sub-grant project site showing existing features (land
use – built up areas, agriculture land, grass land etc.; water bodies, rivers, social infrastructures – road, taps, temples,
stupas, markets, other water sources; etc) and environmental risky areas (water bodies that could be damaged, river
cutting, and all other possible risky features are areas).

Summary of Screening Findings and Recommendations

Findings and main issues apparent at the stage of Recommendations and next steps
screening

Prepared by: Approved by:

(Environmental Officer) (Executive Officer, Municipality)
Date: Date:

______________________________
Reviewed by Environmental Specialist, Grant Facility Administrator:

Date:

74
 Annex 6: IPs & Vulnerable Groups Impact Screening & Categorization Form

A. Project Data

Municipal Invesmtent Sub-grant Title:

B. Identification of Impact on IPs/ Vulnerable Group in the Municipal Investment/Sub-project Area

Impact on Indigenous Peoples (IPs)/ Ethnic Not Yes No Remarks or
Minority(EM)/ Vulnerable Group known identified
problems, if any
Are there dalits, janjatis, or ethnic minorities present in
project locations?
Do they maintain distinctive customs and traditions and
economic activities in their locality?

Will the project in any way affect their economic and social
activity and make them more vulnerable?

Will the project affect their socioeconomic and cultural

integrity?
Will the project disrupt their community life?

Will the project positively affect their health, education,

livelihood or social security status?

Will the project negatively affect their health, education,

livelihood or social security status?

Will the project alter or undermine the their local

knowledge, customary behaviors or institutions?

Are IP and VC households likely to lose customary rights

over, access to land?23

Are IPs and VCs likely to lose shelter/business and be

displaced?

In case no disruption of indigenous community life as a

whole, will there be loss of housing, strip of land, crops,
trees and other fixed assets owned or controlled by
individual indigenous households?

Specific Impacts on IPs and VCs

No of IP No VC No of IP Govt Forest No of No of No of No of Public
families families HHs losing land land IP/VC IP/VC other IP/VC utilities
losing losing house over required required houses shops IP/VC Squatters affected
land land 10% of their in Sq. in Sq affected affected structures affected
residence mts. mts affected

23
Land acquisition costs cannot be funded with JSDF grant.

75
C. Additional Information Required
 Total and affected areas of land, by type of land assets;
 Total and affected areas of structures, by type of structure (main or secondary);
 Legal status of affected land and structure assets, and duration of tenure and ownership;
 Quantity and types of affected crops and trees;
 Quantity of other losses, e.g. business or other income, jobs or other productive assets,
estimated daily net income from informal shops;
 Quantity/area of affected common property, community or public assets, by type;
 Summary data on PAP households, by ethnicity, gender of head of household, household
size, primary and secondary source of household income viz-a-viz whether household is
headed by women, or consists of marginalized ethnic groups (Dalits, Freed Kamaiya),
Muslims/religious minorities, elderly, disabled, indigenous people (highly marginalized,
marginalized, and, disadvantaged IPs), below poverty line of NRs 3000/month), landless or
households losing 50% of total landholdings (particularly those totally dependent on
agriculture for livelihood), as well as remote villages.
 Identify whether affected land or source of income is primary source of income; and
 AP knowledge of the subproject and preferences for compensation and as required,
relocation sites and rehabilitation measures

D. Anticipated project impacts on indigenous peoples

Project activity and output Anticipated positive effect Anticipated negative effect
1.
2.
3.
4.
5.

E. Decision on Categorization

After reviewing the above, if it is determined that the sub-grant is:

 Categorized as an A project, an Indigenous Peoples Development Plan (IPDP) is required.
 Categorized as a B project, a specific action favorable to indigenous peoples is required and
addressed through a specific provision in related plans such as a Resettlement Plan, or a
general Social Action Plan.
 Categorized as a C project, no IPDP or specific action is required.

___________________________ _____________________________
Prepared by: Reviewed by:
(Social Expert, LSMC) (Social safeguard specialist, GFA)
Date: Date:

______________________________
Approved by:
(Executive Officer, Municipality)
Date:

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 Annex 7: Outline Structure of an IP - Vulnerable Community Development Plan (IP/VCDP)

The identities, cultures, lands and resources of IPs groups are uniquely intertwined and vulnerable to
changes caused by development programs. Because of this uniqueness and cohesiveness, sub-grants
that include janajati and dalit settlements, should ensure that these groups are not disadvantaged by
these development interventions and the proposed mitigation measures/benefits are culturally
compatible. This annexure provide a set of guidelines for addressing impacts on IP and vulnerable
population through the preparation of an IP-VCDP.

Suggested Guidelines of Preparation of an IP-VCDP

A. The Contest of IP-VCDP and its Objectives
1. Provide overall background and context of preparing IP-VCDP
2. Describe the objectives of IP-VCDP
B. Legal Framework
1. Establish the legal status of the IPs and vulnerable groups identified under the municipal investment/
sub-grant.
2. Spell out what is required by the relevant Acts and rules.
C. Baseline Data
1. Include accurate, up-to-date maps and photographs of the municipal investment/sub-grant area
showing the areas inhabited by IPs and vulnerable people.
2. Present a description of the municipal investment/sub-grant and implication for IPs and vulnerable
communities and analyze the social structure and income sources and socioeconomic level of the
population by category of gender, caste and ethnicity.
3. Provide disaggregated baseline data on the magnitude and nature of negative impact and losses
from project intervention.
4. Provide natural resource and asset holding, land tenure and livelihood related information.
5. Capture the full range of production and marketing activities in which these people are engaged.
D. Strategy for Local Participation
1. Documentation of consultations with vulnerable groups to ascertain their views about the project
design and proposed mitigation measures.
2. Devise mechanisms for participation by these people in decision making throughout project planning,
implementation, and evaluation.
3. Provide effective channels for communicating local preferences, representation and appropriate
methods to guarantee full local-level participation with specicial attention to IPs and VCs and their
organizations (IPOs and CBOs representing VCs).
R. Mitigation Activities
1. Propose assistance to these people including skill training and income generating activities. Ensure
that activities that draw upon indigenous knowledge are used as they succeed better than those that
are entirely new principles and institutions.
F. Institutional Arrangement
1. Provide institutional structure and linkage with other project arrangement to implement IP-VCDP.
2. Provide brief description about the adequacy of experienced professional staff and ability of
indigenous peoples' own organizations, and local NGOs to interact with specialized government
institutions.
3. Describe the role IPs and VCs and their organizations (IPOs and CBOs representing VCs will have
in the implementation process.
G. Implementation Schedule
1. Prepare an implementation schedule with benchmarks by which progress can be measured at
appropriate intervals.
H. Monitoring and Evaluation
1. Suggest monitoring mechanism ( internal and independent monitoring institutions/officials. Explore
the possibility of finding Janjati or Dalits peoples’ own organizations for sub-grant management.
2. Prepare monitoring reporting formats for assessing sub-grant implementation.
I. Cost Estimates and Financing
1. Prepare a plan which detailed cost estimates for planned activities and investments.

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 Annex 8: Public Ward Level Consultations Findings

April 2013

In addition to several other consultations, consultations were held in each of the four LSMC recipient
wards (listed below) during the preparation of this ESMF. Details of the consultation outcomes are
presented below.

Ward Consultations

1. Dhapagal, Ward no 16, LSMC- 26 April, 2013

2. Ward office, Ward no: 21, LSMC- 28 April, 2013
3. Alok Hiti, ward no 22, LSMC, 29 April, 2013
4. Kayagunani, ward no 18, KSMC, 29 April, 2013

Prior starting the consultations in each ward, there were introductions of all of the participants as well as
highlight information about PPURP by the LSMC and World Bank staff and consultants.

1. Dhapagal, Ward no 16, LSMC- 26 April, 2013

The ward level consultations for ward no 16 was held at the ward office situated at Dhapagal. The
concerns and queries raised by the participants were as follows.

A participant emphasized the need for sewerage in ward no 16. He has mentioned that due to
construction of road and other infrastructure creates pressure in sewerage network. The GoN and LSMC
is focusing only for the construction and improvement of road not for sewerage. Due to lack of sewerage
in ward no 16, the waste water is spilled all over the road.

He further mentioned that in ward no 16, “Asta Matrica Dance” is one of the famous tradition which
needs to be continued and conserved for future in which PPURP can support.

A: PPURP focuses only in small infrastructure components benefiting the pro-poor community. The
sewerage project falls under large infrastructure support which is beyond the scope of PPURP. Besides,
this requires treatment facility and stringent clearance which falls under exclusion criteria set for PPURP.

A participant mentioned that most of the stone spouts, and wells in ward no 16 are drying up and it
needs to be conserved. So, the project needs to think for improving recharge area and maintenance of
stone spouts and wells.

In ward no 16, Adarsha Saral High School is the only government school. Since the school is in Guthi
land, government is not providing any kind of financial and other support to the school. The school is
trying to conserve the culture by including “Newari Language” in their syllabus. They are expecting
PPURP to support school in promoting language promotion and for conservation of Guthi land and
buildings.

The market management and waste management in ward no 16 is very poor and needs improvement.
Since there are many open spaces in the ward, it should be maintained (including greenery).

Private sector is doing well in handicraft sector. The lesson learned from the private sector should be
applied to project interventions.

There are many temples, shrines, resting places in ward no 16, so PPURP program should focus on
renovation and maintenance of such items.

Nakabahil of ward no 16 should be promoted as a tourist place. The information about Patan should be
provided to tourist, including the importance of Nakabahil area. The tourist shop in the area needs to be
managed properly. The entrance gate, and resting place (Pati) of Nakabahil should be renovated giving
ancient look.

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2. Ward office, Ward no: 21, LSMC- 28 April, 2013

A participant liked the idea of the project. He has mentioned that the activities should be selected in
participatory manner in a bottom up approach not from top to bottom approach.

There were several consultations and expectations raised by LSMC in the past. Despite such
consultations and planning, some of the programs proposed earlier didn’t happen at all. Due to this
reason, people are losing trust and stop appearing in consolations. People are willing to support if
projects like PPURP is implemented in their ward.

A participant has previous experience working with WB funded projects. He has mentioned that LSMC
and ward should be transparent and fund shouldn’t be misused.

There are many organizations working in the area of women empowerment, uplifement of pro-poor,
environmental conservation in ward no 21. They might be willing to work in collaboration with PPURP.
She will inform those organizations about objectives and scope of PPURP. She further added that if
LSMC collaborate with such organizations, it could be instrumental in implementing PPURP activities in
wards.

3. Alok Hiti, ward no 22, LSMC, 29 April 2013

A participant mentioned that it will be difficult for wards to generate matching fund for community support
programs like (conservation of shrines, temples, historical places) as these are public properties, people
are not willing to contribute.

The ward has bad experience working with LSMC in the past. If LSMC implements the activity, it will be
difficult to maintain the quality. So, in order to maintain the quality of work, it needs to be contracted out
with conditions that respective ward will also be engaged in monitoring and supervision activity. Previous
lessons learned and existing ill social practices in executing the task through municipality should be
reviewed prior deciding the mechanism of implementation of program.

The grant needs to be properly utilized so effective monitoring by the World Bank should be in place.

The municipality should be transparent and the modality of operation of program should be not being
difficult. The individual ward must be in position to play a major role in selection of activity and in
monitoring.

There is several income generating activities currently ongoing in ward. So, this program can obtain such
information and also collaborate with such entities for effective and participatory implementation of
activities.

Since this is ward focused program, information dissemination and orientation is required to majority of
population. For the effective execution of this program, ward level representation in the steering
committee of LSMC is recommended.

Since there is no elected government body at ward level, the program needs to be executed
representing all walks of society. If this program is dependent only to municipality, it will be difficult for
execution at grass root level of ward. It is for this reason, mechanism for effective ward level
representation is essential.

A participant noted that programs executed directly through ward are more transparent and effective.
The budget should reach to targeted stakeholders directly to avoid misuse and proper execution of
activity.

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He further added that there are many historical and archeological places in ward no 22, which has not
yet been highlighted due to lack of promotional activities. He has suggested that stocktaking of such
historical and archeological places and its promotional activities should be an integral component to
PPURP.

A participant mentioned that his organization is providing skill oriented training to people in areas of
cottage industry (handicraft etc). Since there are many such organizations involved in providing such
trainings, the PPURP can use such roster of organizations for their use.

A participant mentioned that all the recipient wards of PPURP should unit together for tourist promotion
in Patan. The development of state of the art tourist information center and tourist route could be one of
such initiatives.

A participant is 82 years old and knowledgeable about the history of the area. He has mentioned that
there are several shrines and archeological places in the ward. Besides there are many stone spouts
and wells in the ward. The “Gopi Chandra Mahabihar” and other several Bihars has a long history and
such information is not available within Nepal. However in Tibet and in Nalanda people are involved
researches of such archeological places of Patan. They often visit the site and interview Mr Shakya. Mr.
Shakya is in favor that such historical item needs to be preserved. He believes that promotion of such
items will support the tourism industry in Nepal.

4. Kayagunani, ward no 18, KSMC, 29 April, 2013

A participant mentioned that they are promoting local handicraft and gift items produced at local level
and even open a shop for promotion and sale. Their organization is willing to collaborate with wards for
such promotion for PPURP.

The local people are producing handicraft items but finding a market is a big challenge. So, effective
promotion and access to market for the locally produced goods is one of the important aspects to be
considered under this program.

According to a participant, all the recharge areas of stone spouts and wells are encroached in the name
of urbanization. The wells and stone spouts are drying up. It is very important to increase the recharge
areas by introducing techniques like rain water harvesting. He further added that the remaining ponds in
LSMC need to be conserved.

He has also mentioned that there are very unique traditional houses in ward no 18, which needs to be
conserved. According to him, the traffic management is poor in tourist areas of ward no 18 and other
places. The problem of pollution and hawkers are also prevailing in the area.

A participant mentioned that LSMC should develop tourist package in collaboration with wards to avoid
monopoly of tourist guides.

A participant advised that handicraft fair should be organized by the wards for the promotion handicrafts.
The tourist police and other safety and information mechanisms which are in place should be effective.
For quality tourism, facilities for tourist should be developed within wards.

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 Annex 9: Public Ward Level Consultations Attendance

Ward 16 Consultations, 26 April, 2013

S.N Name Organization/Address

1. Riddhi Man Shrestha 16/71 Sahal
2. Ishwor P.Pokharel Adarsha Saral High School
3. Koji Ratna shakya Samayk Ajibika Adayan Kendra
4. Rajendra Shakya Nyakha Chok
5. Sabina Maharjan L.S.M.C
6. Prabin Dhakhwa L.S.M.C
7. Pawan Lohani Consultant-World bank
8. Dilip Joshi Patan Campus
9. Arjun Kuwer L.S.M.C
10. Bulkni rana Maharjan Ward no 16
11. Narayan Maharjan 16/Nakabahil
12. Rinoj Dongol Nyatha chowk
13. Narayan Dongol

Ward 21 Consultations, 28 April, 2013

S.N Name Organization/Address

1. Kedar lal Shrestha Pimbahal
2. Rupak Kanta Rajopadhya Pimbahal
3. Ramesh Man Karmacharya Pimbahal
4. Bagish Purna Shrestha Pimbahal
5. Bhim Maharjan Mikha Bahal
6. Aapu Lal Maharjan Pimbahal Mubahal
7. Mina Shakya Mikha Bahal
8. Gajendra Maharjan Chayasal
9. Nem Raj Shakya Chayabahal
10. Utam Lal Shrestha Chayabaha
11. Barsha Raj Bhandari Chayabaha
12. Asha Dahal Chayabaha
13. Asha Kaji Maharjan Chayabaha
14. Prabin Dhakhwa L.S.M.C

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Ward 22 Consultations, 29 April, 2013

S.N Name Organization/Address

1. Rabindra Maharjan Secretary, Ward no 22
2. Bhim Maharjan
3. Buddhi Raj Maharjan Chakupat
4. Purna Chandra Shrestha Ikhache Tol
5. Raju Bajracharya Ikhache Tol
6. Babu Kaji Shakya Ikhache Tol
7. Sandira Bajracharya Ikhache Tol
8. Gyan Bahadur Shakya Ikhache Tol
9. Shyam Krishan Maharjan Chaku Gha hitti tol sudar samiti
10. Aroj Kumar Khadgi Khumbesor Tol sudar Samiti
11. Pradip Bajracharya Samayak Bachat Tatha Rin
Sahakari Sanstha, Chaiperson
12. Prabin Dhakhwa L.S.M.C
13. Pawan Lohani Consultant-WB
14. Sabina Maharjan L.S.M.C
15. Salil Devkota Environment &Social Safeguard
16. Chaitya Raj Shakya Ikhache,22
17. Narendra Raj Shakya Ikhache,22
18. Puspa Tandukar Jhatapole

Ward 18 Consultations, 29 April, 2013

S.N Name Organization/Address

1. Gyarundra Shakya L.P Mahapal
2. Rakesh Joshi Mahapal, Lalitpur
3. Prerna Bajracharya Dhaugal
4. Sagar Bhakta Amatya Gahabal, Lalitpur
5. Tirth Maharjan Kayagu nani
6. Sabina Maharjan L.S.M.C
7. Babu Kalu Dongol Secretary ward no 18
8. Salil Devkota Consultant-WB
9. Prem Kaji Shakya Daubahal-18
10. Nabin Maharjan Kayagu nani
11. Rakesh Bajracharya Kishi chok -18
12. Prabin Dhakhwa L.S.M.C

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 Annex 10: Pictoral Highlights of Ward-level Interactions

Office of ward no 16, LSMC Vegetable market close to ward no 16, LSMC

Inner urban road of ward no 16 Consultation in ward no 16

People waiting to fetch water ward no 22 Local people waiting to fetch water from
stone spouts, near ward office of ward no 22

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Glimpse of settlement in ward no 18 Open spaces in front of ward no 18

Glimpse of settlement in ward no 21 Glimpse of open space ward no 18

84
During consultations with stakeholders at ward no 18 During consultations with stakeholders at ward
no 18

Temple in ward no 18 Houses glimpse of ward no 21

85
Houses glimpse of ward no 21 Participation of consultation ward no 21

Glimpse of settlement in ward no 22 Consultation in ward no 22

Children park at ward no 22 Consultation in ward no 22

86