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ENVIRONMENTAL ASSESSMENT AND REVIEW FRAMEWORK

(Agribusiness Infrastructure Development Investment Program) A. Introduction

1. The Agribusiness Infrastructure Development Investment Program (AIDIP) aims to address three main constraints to agriculture growth: (i) outdated technologies and management, (ii) lack of public investment in linking infrastructure (such as roads from production areas to collection points), and (iii) lack of private investment and management in modern marketing infrastructure (such as cold chains, controlled atmosphere storages, and automated grading). Using an Integrated Value Chain (IVC) approach, the program invests in physical and institutional linkages along horticultural value chains1, through support of (i) site development and agribusiness infrastructure; (ii) linking infrastructure to ensure connectivity and basic services across the value chain; (iii) backward value chain linkages to the production areas through contract farming and producers’ companies; and (iv) capacity building on technical and managerial skills along the value chain. The Program area covers selected regions of Bihar and Maharashtra, two States that have adopted different agri-marketing policies, with Bihar promoting the provision of agri-marketing as a private sector led function, and Maharashtra enabling greater private sector participation but leaving the role of regulator and market manager with the public sector. 2. Integrated Value Chains (IVC) envisaged in the program would comprise of crops and agriculture commodities that prevail in the selected districts within each State. IVC’s consist of producers and market chain stakeholders cooperating to supply products that consumers demand in a manner that increasingly maximizes the value to all stakeholders including producers. The program will invest in physical infrastructure and capacity building to provide linkages and logistical coordination from farm gate to the consumer so as to a) improve handling of commodities, b) enhance value at each stage of the value chain and c) reduce wastage such that farm gate returns are improved from a greater proportion of output reaching final consumption, higher consumer prices from improved quality. The program will be implemented from November 2010 to December 2017, and will be financed through a Multi-tranche Financing Facility (MFF) of $170 million which is currently envisaged to comprise of four tranches, with two tranches for each State. The program includes two main components (i) support for integrated value chains; and (ii) institutional development and program management.

Component 1: Support for Integrated Value Chains 3. The component will support the strengthening and/or establishment of agribusiness and marketing infrastructure and institutional linkages among the IVC stakeholders for horticultural high value crops (HVCs). Through basic and agribusiness infrastructure within market yards, linking infrastructure to ensure connectivity and basic utilities services along the VC, strengthening and/or establishing of backward VC linkages, and technical skills development along the VC, the component will ensure that the marketing infrastructure are linked to basic utilities services and producers so that more efficient IVC’s develop..The component includes the following sub-components:

1 The term "value chain (VC)" is used to characterize the interconnected, coordinated set of links and steps that take

place as agricultural products' transformations and transactions take place along a chain of interrelated activities between primary production and the final consumer.

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i. Rehabilitation and/or building of basic infrastructure for market site development, operated by private sector operator on a public private partnership (PPP) basis, such as internal roads, solid waste management systems, boundary walls, water drainage and water supply facility, etc.;

ii. Rehabilitation and/or building of agribusiness infrastructure, operated by private

sector operator on a PPP basis, such as pre-cooling facilities, transportation, washing and ripening facilities, grading & sorting, packaging facilities, information technology systems, and ambient and controlled temperature storage2;

iii. Establishment of linking infrastructure along the value chain, i.e. infrastructure to

service the IVC with basic utilities (such as power supply linkages, and water connections) and to increase the IVC connectivity through roads (such as rural roads to production areas, and access roads to markets). Government line departments will develop any linking infrastructure needed, financing it through existing government schemes or through the AIDIP when no government schemes are available;

iv. Strengthening and/or establishment of backward linkages to the production areas

so that producers are linked to the IVCs. To take advantage of value addition options and improved marketing efficiency, small farmers must coordinate their decisions, aggregate their produce, and improve product quality. To develop farmers' capacity or knowledge to operate beyond the farm gate level, the Program will mobilize and organize small producers into farmers' organizations and will provide farmers with training in value addition options to improve their production and marketing decisions, increase their marketing efficiency, and raise their profitability; and

v. IVC Capacity Development will address through training the need for enhancing the

capability along the IVC on technical and management skills to operate and maintain efficient IVCs. The training activities will be outsourced to specialized service providers according to the needs which will determined by the equipment bought and the facilities established along the IVC. Some of the training will be purchased jointly with the highly specialized equipment

4. These sub-components are mutually supportive and will promote the establishment of partnerships and linkages among stakeholders along the traditional VC, including farmers, processors, agribusiness entrepreneurs and service providers, which together with the infrastructural support will help form modern IVCs.

Component 2: Institutional Development and Program Management 5. To have sound project and PPP contract management systems in place, project management units (PMU) in each state will provide implementation support, consisting of staff, office facilities and equipment, consulting services, and liaison and development coordination with other ministries and donors. Baseline surveys, and regular monitoring and evaluation will be undertaken. PMUs will establish and maintain a project website to disclose information about project activities, including procurement procedures and results. A technical advisory group (TAG) will be engaged by each PMU throughout the entire project

2 More commercial components might be leveraged by the establishment of IVCs and developed around the IVCs by

private sector operators, which will be free to avail any subsidy, as applicable, from existing government schemes, but they wont qualify under the AIDIP.

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implementation cycle to ensure that the PPP transactions for the establishment of the IVC infrastructure are successfully completed with their implementation monitored. The role and responsibilities of the TAG will include the following functions: (i) management of the entire bid process, from marketing of the projects, inviting expression of interest for both Request For Qualifications and Request For Proposals stages, evaluation of the bids and selection of private operator (concessionaire), (ii) recruiting requisite domain experts as per agreed Term of References, (iii) Monitoring and Evaluation (M&E) of IVCs implementation, during construction and operations, (iv) planning and implementation the of capacity building and training programs along the IVC, and (v) preparation of subsequent MFF tranches. 6. The impact of the investment program will be increased margins for all stakeholders across IVCs for horticulture products, attracting investments into diversification into high value crops (HVC), and value addition of horticultural HVCs, in selected regions of Bihar and Maharashtra. The program outcome will be the establishment of 10 or more efficient IVCs for horticultural HVCs, managed by private sector investors and linked to organized small scale farmers (in the form of groups associations and/or producers companies). The outcome of the program will be delivered through 8 Public Private Partnership contracts, leveraging private sector investment into and management of agribusiness and marketing infrastructure, on publicly owned land within geographically linked spokes and hubs each of which provide collection services, grading, packaging, storing, processing and cold storage facilities to a range of high value horticultural products. The hub and spoke model takes into account existing VCs players and resolves them into the new, modern, and efficient VCs that employ the use of improved infrastructure and systems. 7. A hub and spoke model has been recommended for the proposed interventions. Hub locations are central market places well connected by rail and road while spoke locations are closer to the producers from where agriculture commodities will be supplied and then forwarded to hub locations after preliminary processes such as pre-cooling, grading and washing. Based on the farmers’ clusters and trade in the respective commodities, towns and cities have been identified for hub and spoke locations. Requisite facilities at each hub and spoke locations have also been identified. 8. The executing agencies for the Facility will be the Bihar Department of Agriculture (DOA) and the Maharashtra Department of Cooperatives and Marketing. The Implementing Agencies will be PMUs within the DOA in Bihar and the Maharashtra State Agriculture Marketing Board (MSAMB) in Maharashtra. The IVC infrastructure, (i) and (ii), described in paragraph 3, will be built and operated by private sector operators selected through a competitive bidding process. The State PMUs will invite bids from private developers to design, construct, operate and maintain (O&M) the IVC infrastructure and will contract them on PPP basis at value chain level, with land provided by the government. All IVC projects to be included under the Facility will meet the selection criteria in Schedule 4 of Web-Linked Document 1 9. Investments to be covered under tranche 1 in Bihar, have been classified as category B and an Initial Environmental Examination and Environmental Management Plan prepared in accordance with ADB's Safeguard Policy, 2009. Design and location details of subsequent tranches to be implemented through PPP are unknown at this stage. Without these details the environmental assessment of sub-project components for subsequent tranches cannot be prepared prior to the approval of the MFF. It is envisaged that approximately 30 market sites will be developed per State by 2017. The market sites will typically include infrastructure for aggregation facilities; washing, sorting grading and packing facilities; ripening chambers;

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storage space, distribution facilities, solid waste and waste water management systems; and water supply facilities. 10. Given the proposed interventions, it is unlikely that any of the types of activities in the project components will generate significant adverse environmental impacts as long as the project sites meet siting norms for industrial projects3. The anticipated impacts will be mostly reversible and manageable through adoption of suitable mitigation measures. It is unlikely that that any of the sub-projects will cause any adverse, irreversible impacts. However, since the sites are unknown at this stage is difficult to ascertain the environmental category of each of the proposed interventions. Therefore this Environmental Assessment and Review Framework, stipulates the requirements for screening, conducting environmental assessment, approval, review, and monitoring for any sub-project to be financed in subsequent PFR tranches. The assessment and review procedure proposed in the Framework is based on ADB’s Safeguard Policy Statement (SPS) of 2009 and is also designed to meet the Government of India's legal requirements on environmental safeguards. B. Assessment of Legal Framework and Institutional Capacity

11. Proposed interventions will have to comply with the legal environmental framework in India and ADB Safeguard Policy Statement 2009. India’s regulatory framework for environmental impact assessment, the Environment (Protection) Act, 1986; and rules made therein, the Environmental Impact Assessment Notification, 2006; are key regulations at planning stage of the project while The Water (Prevention and Control of Pollution) Act, 1974 (popularly known as the Water Act); The Air (Prevention and Control of Pollution) Act, 1981 (popularly known as the Air Act) and the Hazardous Waste Storage and Handling Rules, 1991 are legislations significant for application during the operations phase. Site selection for subsequent tranches, will be guided by siting guidelines for infrastructure projects as prescribed by the Central Pollution Control Board. 12. Project developer would have to apply for Consent to Establish (CtE) under the Water Act and the Air Act. Before issuing the consent, State Pollution Control Board (SPCB) would check if any of the provisions of the Environmental Impact Assessment rules of 14 September 2006 are triggered by the project proposal. Under these rules, project activities have been divided in seven groups with several sub-groups. Depending upon the spatial location and scale of the project, criteria are provided for categorization of projects into categories A, B1 and B2. All category A projects essentially have to undergo Environmental Clearance (EC) after scoping advise from the Expert Appraisal Committee (EAC). Projects not falling in category A should apply in Form A (project details) for screening to the state authorities who advise if the project falls in Category B1 or B2. Projects classified as B1 will have to obtain scoping advice from the state authority while category B2 projects could go for CtE from SPCB. Depending upon the location of the projects General Conditions (GC) and Special Conditions (SC) are to be fulfilled during EC. 13. If the project is categorized as B2 or after Project Developer obtains EC, SPCB will issue CtE after stipulating conditions for mitigation of potential impacts during construction phase. On obtaining CtE and EC, if required, physical construction for the facility can be completed. On physical completion, the Project Developer has to obtain Consent to Operate (CtO) from SPCB wherein SPCB would include conditions related to mitigation of potential impacts during operations phase. Once project is operational, Environmental Statement and

3 Any commercial activity for post harvest processing of agriculture commodities has to be registered with the

Department of Industries

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Water Cess returns are filed by the Project Developer on annual basis as a part of the required monitoring mechanism. 14. Environmental regulatory mechanism in India is very elaborate but at times fails to address local site specific issues related to local population or project affected people. This primarily happens due to the resource constraint with the pollution control boards for monitoring projects in remotely located area. Recognizing this limitation, this Framework suggests measures to be adopted in this project to improve environmental monitoring and compliance. C. Anticipated Environmental Impacts

15. Area and Focus of Commodities Covered: Depending upon the agricultural produce of the region/IVC, facilities at spoke and hub locations will be configured so as to preserve and/or enhance value of the commodity. 16. Envisaged Components and Sub-Components of the Project: Component one will comprise of hub and spoke facilities that will depend upon the crops, shelf life, methods of improving shelf life and ripening method of the crops. Depending upon the commodity handled by the spoke location, various activities that could be potentially proposed at various locations are described below:

Pack House: Pack house facility has sorting and packing facility comprising of sorting tables and conveyor belts. Pack house operating at ambient temperature would have ventilation facility to maintain comfortable temperature by evacuating heat from the working area. Pack house cold chain would have air conditioned pack house attached with the cost storages;

Pre-coolers: Pre-coolers are refrigerated chambers where commodities are stored as soon as possible after harvest. Temperature is maintained in the range from 6 to 15 degree Celsius. Function of this facility is to reduce rate of bio-chemical activity in the commodity such as bacterial growth and conversion of sucrose and starch to compounds of lower molecular weight. Use of refrigerant and consumption of energy are environmental aspects of this activity;

Cold Storages: Cold storages are also refrigerated chambers with temperatures maintained between -20 (core) to 6 (anti-chamber) degree Celsius. Use of refrigerant and consumption of energy are environmental aspects of this activity;

Dry Storages: Dry storages are warehouses where commodity is stored at ambient temperature. Proper ventilation is maintained in dry storages. Minor solid waste generated due to spillages and spoilt commodity;

Pre-Processing Line: Pre-processing activities involve washing, scrubbing, hot dip or vapor treatment, fumigation, waxing, grading, desapping, dehanding, packing, etc. Pre-processing lines generate solid waste and may generate liquid waste depending upon the operations. Fumigation may have accidental exposure of fumigant of the workers;

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Trading/Auction Platform: This is a facility where commodity is displayed for auction or trading. Solid waste generation during multiple handling is the environmental aspect of this operation;

Agri Input Shops: These are shops of small traders or service providers such as suppliers of chemicals, suppliers of farm equipment and seeds, suppliers of market accessories such as crates, packing material and spare parts;

Admin Block: Administrative building for the facility would house a small office of the facility operator, regulatory agencies as applicable and offices of trader, knowledge center, canteen, business center; and

Miscellaneous Supportive Activities: These activities include canteen, guest house, knowledge center, solid waste management, parking area, weigh bridge and sanitation facilities, etc.

Component two will support institutional capacity and strengthening of this capacity for effective implementation including safeguard management and monitoring, 17. Physical resources: Depending upon the location of value chain and site conditions, and anticipated impacts, the environmental category will be determined (described in Section D). Based on the categorization the respective PMU shall prepare an appropriate level of environmental assessment (either an Environmental Impact Assessment or Initial Environmental Examination) report for interventions identified within each IVC PFR. In preparation of environmental assessment (EA), data related to physical resources of the site such as rainfall, sources of water, natural drainages such as river and nalla, ground water table, soil type and condition, land use at site and surrounding, etc. should be gathered from secondary sources and examined. 18. Socio-economic Use of Physical and Ecological Resources: The focus of the Program on agri-marketing infrastructure beyond the farm gate data on employment, employment conditions and facilities should be collated. With the expectation of improved farmer returns data such as the consumption of total fertilizer nutrients, land holding per family, crop cycle and existing agriculture infrastructure should be collected. 19. Zone of Influence and Meteorological Baseline: Latitude and longitude of zone of influence of activities and meteorological data should be collected from the nearest metereological center. This data should be examined for possible seasonal variations in the temperatures as against commodities under consideration and changes in wind direction for potential impact on the sensitive locations in the surrounding Anticipated Environmental Impacts 20. Based on the project activities and data recorded as above, anticipated impact during pre-construction, construction and operations phase of establishment need to be assessed and included in the EA. 21. Some of the impacts based on available information of the two States and on potential activities are presented below. However, this is only indicative list and hence the appropriate level of environmental assessment to be conducted for each tranche, should not limit examination to these impacts only and should consider and examine any other potential

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impacts. Operation phase impacts would depend upon the facilities at each sub-component (hub & spoke) and hence the same is discussed in the next section. Table 1 Project Activity - Potential Impact Matrix

Project Activity Potential Impact

Pre-construction

Project sitting Selected sites may create negative impact to environment and immediate surroundings. Compliance to applicable legislation and sensitivity to impact on surrounding population due to resource consumption and disturbance

General design Social and environmental deterioration of local area due to inappropriate design, introduction of foreign fauna and flora or construction material

Initial sourcing of construction material and equipments

Possible sourcing of low grade quality materials and equipments

Construction

Mobilizing workforce Social and health impacts on local communities and workers due to hygiene and sanitation issues and other social interaction between migrated labor and local community members

Use of vehicles and heavy machinery

Dust and noise generation from construction activities

Generation of construction waste

1) Air pollution due to increase in suspended particulate matter 2) Pollution from discarded material and solid waste

Use of chemicals and fuels Contamination of soil

Operation

Generation of solid waste 1) Contamination of soil due to solid waste generated due to wastage, spillage, and packaging 2) Generation of foul odour and toxic gases

Generation of wastewater Water pollution from discharge of wastewater generated from washing, cleaning, ripening and cold storage operations

Use of Diesel Generator sets Deterioration of air quality due to generation of GHGs, noise pollution

Use of cold storage Energy consumption, Emission of GHGs and Ozone-depleting gases

22. Sites for proposed infrastructure development will be decided by the PMO and IAs and the PMO will need to assess potential environmental impacts and conduct the appropriate Environmental Assessment as part of each PFR. It will be the responsibility of the bidder to

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update the respective EA and EMP during detailed design stages. In general in the selection of sites will be guided by the following. Sites selected will:

avoid resettlement/relocation. If unavoidable the extent of resettlement will be minimized;

not result in destruction of or encroachment onto protected areas, including reserved forests or biodiversity conservation hotspots (identified in the State Biodiversity Strategy and Action Plans);

not result in destruction/disturbance to historical and cultural places/values;

avoid conversion of prime agriculture areas for component establishment;

not involve social conflicts; and

reflect inputs from public consultation and disclosure for site selection. 23. Based on the current understanding of the proposed activities, a matrix of potential impacts, corresponding possible mitigation measures, implementation responsibility and verification responsibility are presented as follows. The list provided, by no means covers all potential impacts and is just an indicative list. The PMU when preparing the appropriate EA will also be guided by ADB's Rapid Environmental Assessment checklists which will be used to categorize the Project, found in http://www.adb.org/documents/Guidelines/Environmental_Assessment/eaguidelines002.asp) Table 2: Responsibility Matrix of Potential Impacts and Mitigatory Measures for Proposed Developments

Potential Impact

Proposed Mitigation Measures

Implementation Arrangement

Verification Method

IVC Infrastructure: Hub and Spoke Locations

Pre-construction

Siting creates adverse impact to environment and immediate surroundings

Proposed location meets siting criteria prescribed by State Agency4/CPCB and described in para 25. Discuss project location with local public and project beneficiaries

State Agency/ Project Developer

EA and social analysis report incorporating both environmental and social aspects

Social and environmental deterioration of local area due to inappropriate design

Ensure that Planning Rules are adhered to by the developer Design to suit locally available construction material and climatic conditions

State Agency/ Project Developer

Project Monitoring Consultant (PMC) of State Agency to certify that design is complying with proposed mitigation measures and best practices

4 State Agency – Implementation agency of corresponding state government selected for the AIDP project

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Potential Impact

Proposed Mitigation Measures

Implementation Arrangement

Verification Method

Social and health impacts on local communities and workers

Prescribe stringent norms for transportation of material encourage employment of local people train workers on personal safety and hygiene

State Agency/ Project Developer

PMC to State Agency to check track record of the contractor, and construction management plan. Project developer to obtain Consent to Establish from SPCB

Construction Dust and noise generation from construction activities

to minimize dust generation: water and/or cover areas having piles of loose soil/dirt specify speed limit of 25 kmph for trucks carrying soil create plantation barriers by vegetating areas surrounding construction site. Do not undertake noisy activities like crushing of stones, excavation during night time only use vehicles that have all requisite permits/certificates for safety and environmental requirements and routine preventive maintenance

Project Developer

Specification for environmental management of construction activities

Pollution from solid waste

make it mandatory for contractor to provide drinking water supply and sanitation facilities at the labor camp make it mandatory for the contractor to remove excess

Project Developer

Specification for environmental management of construction activities

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Potential Impact

Proposed Mitigation Measures

Implementation Arrangement

Verification Method

solid concrete, and shuttering material from site as contractors tend to leave behind these materials as they do not have any scrap value

Contamination of soil

store fuels and chemicals in sealed containers and store room/area should be lined with Plain Cement Concrete

Project Developer

Specification for environmental management of construction activities

Operation

Contamination of soil due to solid waste

consider one of the three options of composting, biomethanation and disposal by Local Urban Body (LUB) for biodegradable waste. Provide adequate land for the first two option during site selection packaging waste could be given to scrap dealer purchase policy for chemicals should include supplier of chemicals taking away empty containers for reuse or safe disposal

Project proponent

Funding of subsequent tranches to be linked to compliance

Water pollution from discharge of wastewater from ripening chambers, washing and thawing of cold

use appropriate waste water treatment mechanism before release of treated water on land or surface water

Project proponent

Consent to operate from SPCB

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Potential Impact

Proposed Mitigation Measures

Implementation Arrangement

Verification Method

storages

bodies. Must meet established discharge standards.

Deterioration of air quality due to generation of GHGs

DG sets must meet all pollution control requirements DG sets have acoustic enclosure to prevent noise pollution

Project proponent

Consent to operate from SPCB

Emission of Green House Gases (GHGs) and Ozone-depleting gases

ensure that refrigerant used in cold storage is Chloro-Fluoro-Carbons (CFC) free and GHG friendly ensure selection of machines certified for energy efficiency Undertake regular maintenance of cold storage to ensure no leakage of gases

Project Proponent

Operation and Maintenance Plan

Support Infrastructure – Road

Pre-construction

Right of Way conflict between and among land owners

as a general rule acquisition of ROW should not involve relocation of houses/ religious structures or shops & commercial establishments at the feasibility study/detailed design stage, integrated social and environmental assessments will be done for each subproject to determine the need for temporary or permanent

STATE AGENCY

Detailed design report and Social analysis report incorporating both environmental and social aspects furnished by the successful bidder/ project developer

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Potential Impact

Proposed Mitigation Measures

Implementation Arrangement

Verification Method

acquisition of land or non-land assets

Increased accident hazard to local people and animals

ensure design includes safety provisions such as warning signs, speed restrictions, footpaths, safe crossing, fences and cattle crossings design process should include consultation with local people to better understand potential safety issues

STATE AGENCY

Detailed design report and Social analysis report incorporating both environmental and social aspects

Construction Social and health impacts on local communities

encourage employment of local people so that migrated labor could be minimized train workers in site safety methods and provide necessary personal protective equipments (PPEs) such as mask, gloves etc.

State Agency Perception of local people, number of accidents/incidents in building construction

Dust and noise generation from construction activities

to minimize dust generation: water and/or cover areas having piles of loose soil/dirt specify speed limit of 25 kmph for trucks carrying soil create plantation barriers by vegetating areas surrounding construction site do not undertake noisy activities like crushing of stones, excavation during night time

Project Developer

Specification for environmental management of construction activities

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Potential Impact

Proposed Mitigation Measures

Implementation Arrangement

Verification Method

only use vehicles that have all requisite permits/certificates for safety and environmental requirements and routine preventive maintenance

Pollution from solid waste

make it mandatory for contractor to provide drinking water supply and sanitation facilities at the labor camp make it mandatory for the contractor to remove excess solid concrete, and shuttering material from site as contractors tend to leave behind these materials as they do not have any scrap value

Project Developer

Specification for environmental management of construction activities

Contamination of soil

store fuels and chemicals in sealed containers and store room/area should be lined with PCC

Project Developer

Specification for environmental management of construction activities

Pollution from solid waste

make it mandatory for contractor to provide drinking water supply and sanitation facilities at the labor camp make it mandatory for the contractor to remove excess solid concrete, and shuttering material from site as contractors tend to leave behind these

Project Developer

Specification for environmental management of construction activities

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Potential Impact

Proposed Mitigation Measures

Implementation Arrangement

Verification Method

materials as they do not have any scrap value

Contamination of soil

store fuels and chemicals in sealed containers and store room/area should be lined with Plain Cement Concrete

Project Developer

Specification for environmental management of construction activities

Operation Accidents due to traffic

Ensure roads are equipped with appropriate safety measures (safety signs, speed limits, etc) Education of drivers and local pedestrians Ensure a maintenance plan for regular repairing of road is in place

State Agency Number of accidents

Support Infrastructure – Power

Pre-construction (Procurement)

Impacts due to noncompliance of DG Set with the pollution control norms

ensure that Gen-set make is of reputed quality

State Agency and Project proponent

Specification for environmental management of construction activities

Operation Air and noise pollution due to emissions from Genset

ensure arrangement for venting of gases through chimney of appropriate height ensure Gen-set is maintained as per the maintenance schedule prescribed by its make Acoustic enclosure

Project Proponent

Ambient air quality monitoring data

Support Infrastructure - Water Supply

Pre-construction

Siting poses a risk of groundwater depletion

analyse groundwater availability before siting of bore wells where feasible

State Agency and project proponent

Feasibility report incorporating both environmental and

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Potential Impact

Proposed Mitigation Measures

Implementation Arrangement

Verification Method

provide for Rain Water Harvesting

social aspects

Construction Noise and dust generation during drilling

ensure that no drilling is done during night time water and/or cover excavated soil

State Agency and project proponent

Specification for environmental management of construction activities

Operation Wastage of water and energy

train staff to use water optimally and avoid wastage

Project Proponent

Specification for environmental management of construction activities

24. Though expected impacts of pre-construction and construction phase are likely to have bearing of the location selected, operation phase impacts are predictable on the basis of agricultural commodities produced and proposed interventions. However the area of influence and scale are dependent on the site selected. These potential impacts for proposed interventions are described below.

Impact on Air Environment: 25. Ambient Air Quality: Ambient air quality at the existing market facilities is affected by the number of trucks carrying commodities and operation of DG sets. Generally, vehicle movement at vegetable market involves idling of trucks due to traffic jams, improper parking of large vehicles, lack of loading and unloading facilities at auction platforms or traders shops and time consuming manual loading and unloading are the prime reasons for these traffic jams. At proposed facility, due to availability of warehouses and provision of site infrastructure, waiting time of trucks is expected to reduce according to the facility layouts given in the main report, arrivals and departures of commodities would be in more orderly manner. Therefore, the environmental assessment should examine traffic volumes, idling time and related impact of air pollution. 26. Considering that the new facilities will be better managed, last mile connectivity will ensure that the roads are properly paved. This will help to reduce dust particulates becoming airborne. The incremental increase in vehicular pollution is expected to be negligible. Through including a requirement by the State Agency that wherever DG sets are used, the sets should have the necessary acoustic insulation to reduce its noise level within prescribed standard and requiring that low sulfur diesel should be used in the DG sets, these impacts could be minimized. 27. Indoor Air Quality: Indoor air pollution may occur in fumigation chambers due to accidental over exposure of workers to the gaseous fumigants or in refrigerated chambers due to accidental leak of refrigerant gasses. All other areas such as warehouses, trading platforms and offices are designed to be naturally well ventilated. The following discussion chemicals proposed to be used in various facilities. 28. The Material Safety Data Sheets (MSDS) should be examined for all chemicals proposed to be used in the project activities. Lethal dosages as against dosages to be applied

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and accidental spills should be examined from environmental impact view point. Preventive and mitigation measures should be identified along with the responsibility of mitigation. Examples of MSDS data examination for Aluminium Sulphate (Alum), Sodium Hypochlorite and Ethylene Gas are provided below for information. 29. Alum: Alum is not included in the Schedule I of Hazardous Chemicals Handling and Storage Rules issued by MoEF under the EP Act. As evident from the MSDS for this chemical, no lethal levels (LD50/ LC50) have been defined for this chemical. Quantum of alum solution to be used is about 52 cubic meters per day. Even for 12 hour shift, it is about 4500 litres of solution prepared every hour. Therefore sudden discharge of this solution to effluent treatment plant may cause disruption in ETP operation. Alum is highly corrosive in solution form and hence while storage and handling, there is a risk skin of irritation if workers come in prolonged contact with Alum solution. Accidental exposure to skin may cause irritation of skin and inhalation may cause irritation of trachea. Repeated washing with water with gentle soap has been recommended as first aid. Accordingly, as a preventive measure, handling of Alum solution should be strictly by the trained operators and necessary accessories such as gloves should be provided to the workers. Alum being hygroscopic, storage of alum should be in properly ventilated room in gunny bags/ trays placed on wooden planks 150 mm above ground so as to avoid ground moisture contact with the chemical. 30. Sodium Hypochlorite: This chemical is not included in the Schedule I of Hazardous Chemicals Handling and Storage Rules issued by MoEF under the EP Act. As evident from the MSDS for this chemical, lethal levels (LD50/LC50) have not been defined for this chemical for humans. However, Hypo solution is highly acidic and hence corrosive and hence while storage and handling, there is a risk of skin irritation if workers come in contact with concentrated hypo solution. Accidental exposure to skin may cause irritation of skin and inhalation may cause irritation of trachea. Repeated washing with water with gentle soap has been recommended as first aid. Accordingly, as a preventive measure, handling of Hypo solution should be strictly by the trained operators and necessary accessories such as gloves should be provided to the workers. Accidental spillage of concentrated hypochlorite may cause bleaching effect and corrosion. Fumes of hypochlorite (particularly where concentrate is stored) also would be corrosive. Therefore storage of Sodium Hypochlorite concentrate should be isolated from other chemicals, properly indicated, room should be properly ventilated and flooring should be rubber lined. 31. Ethylene Gas: Ethylene appears as Chemical number 261 in the Hazardous Chemical Rules, 1994. Ethylene has upper inflammable limit of 36% (higher than 12% prescribed by the Hazardous Chemicals Rules) and hence is classified as highly inflammable. Reported inhalation toxicity in mouse of 95 ppm/2 hour(s) LC50 is below threshold levels (10 ppm) prescribed by Hazardous Chemicals Handling and Storage Rules. Though no occupational exposure limits have been worked out for Ethylene gas, at indicated dosage of 1000 ppm for 24 hrs, prohibition of entry of human in the active ripening chamber is recommended and where unavoidable, necessary respiratory protection should be mandatory. Repeated washing with water is recommended as first aid for accidental exposure. Accordingly, as a preventive measure, flame proof ventilation system should be provided for the ripening chambers.

Wastewater and Solid Waste Management 32. Water usage in the proposed facility will be for two purposes viz. domestic consumption for drinking, sanitation, and industrial/commercial consumption for activities such as washing and chemical treatment of the commodity. Wastewater generated from toilets

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would have characteristics similar to city sewage. Wastewater generated from washing activities will have soil and grit as main contaminants. Wastewater generated from ripening activities will carry left over of ripening chemicals. Since ripening is a batch process, quantity of chemical contaminants is expected to be negligible and overall combined wastewater from each of the facility could be treated in biological activated sludge process. 33. The quantity of wastewater likely to be generated in crop processing should be estimated based on the volume of water used in batch processes, and the number of batches etc. Similarly, characteristics of wastewater should be estimated by testing samples from existing comparable facility or by simulating activity in the laboratory. Quantity of wastewater generated in toilets and canteens can be estimated using architectural planning norms of per capita water consumption. 34. Suitable wastewater treatment facility should be included in the RFP for either combined treatment or separate treatment of wastewater generated in process and in toilets. Treated wastewater should be planned to be recycled for landscaping within the premises or for flushing. In exceptional cases if treated wastewater has to be discharged outside the boundaries of the facility, treated wastewater should meet discharge norms prescribed by the authorities for discharge in to relevant water bodies or land. Necessary permit (CtE, CtO) should be obtained by the project developer for such a disposal and a copy should be given to the State Agency. 35. Since most of the waste generated will be perishable in nature, attempts should be made to promote composting on site, so that the compost/soil conditioner could be used within the premises to landscape the site. D. Environmental Assessment for Components

36. In case of proposed interventions, site is the main unknown factor. To ensure that the Program meets ADB's environmental safeguard requirements as stipulated in the Safeguard Policy Statement 2009, any site selected by the PMU would have to undergo critical scrutiny to ensure that all safeguards are complied with. In selection of site, apart from those highlighted in paragraph 24, due importance will be accorded to ensure adequacy of approach roads and water and power supply arrangements. Once the location has been determined, the environmental category of the Project (both meeting Government of India's regulations as well as ADB's Safeguard requirements) will be determined. The PMU will use ADB's Rapid Environmental Assessment checklists to help in determining the category and GOIs requirements to determine national requirements. 37. Under ADB's Safeguard Policy Statement 2009, projects are screened for their expected environmental impacts and are assigned to one of the following categories:

Category A: Projects likely to have significant adverse environmental impacts, which are irreversible, diverse or unprecedented and may affect an area larger than the location subject to physical works. An Environmental Impact Assessment (EIA) is required.

Category B: Projects with adverse environmental impacts that are less significant than those of category A projects, are site-specific, generally not irreversible, and in most cases can be mitigated more readily than for category A projects. An Initial Environmental Examination (IEE) is required.

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Category C: Projects likely to have minimal or no adverse environmental impacts. No environmental assessment is required, although environmental implications are reviewed.

38. Activities to be financed in Bihar in the first tranche have been categorized as Category B under ADB's criteria and an IEE and EMP prepared. Based on preliminary information available on type of project activities to be financed in subsequent tranches, it is expected that investments would either be categorized as A or B requiring either an EIA or IEE respectively, together with Environmental Management Plans (EMPs). At the time of submission of PFR's to ADB the appropriate environmental assessment (EIA or IEE) will also be submitted. 39. The PMU will conduct a rapid environmental assessment using ADB's Rapid Environmental (REA) checklist and propose a categorization. ADB will review the REA and re-confirm or request a change in the categorization. The responsibility lies with the State Agency through its respective PMU to conduct the respective Environmental Assessments and EMPs prepared and submit to ADB for review and clearance. 40. While the preparation of the environmental assessments will be the responsibility of the PMU, once a project developer has been selected and more details of proposed investments are known, the EA and EMP will be updated and revised by the Project Developer. The PMU/State Agency will be supported by consultants funded under the Project (if required) to conduct, and review the updated environmental assessments. All environmental assessment reports (either EIA or IEE) including EMPs will also be reviewed and cleared by ADB, and approved by the government, as required, prior to award of concession to the private operator. The bid documents prepared by the Project Developer for construction tenders shall include the requirement to incorporate adequate resources to implement the EMP which will form part of the contract document and, if required, will need to be further updated during the project implementation phase. E. Consultation, Information Disclosure, and Grievance Redress Mechanism

41. During planning and implementation, beneficiary and affected communities such as farmers, commission agents, traders, population surrounding the selected site shall be consulted in order to ensure that their concerns and needs are addressed. The consultation process shall be well documented in the environmental assessment reports. During the consultation process, the PMU/State Agency and developer will provide relevant environmental information, including information from the environmental assessment documents in a timely manner, and in a form understandable to affected people and other stakeholders. This information will be shared with all beneficiaries and project affected persons and shall be disseminated in local languages. Relevant information from the Environmental assessment reports will be made available to all project-affected persons in a publicly accessible place. All environmental assessments will be disclosed on ADB's website. While there is no mandatory disclosure of IEE reports for category B subprojects for this type of project (Under Government of India regulations), the IEE report will be made available to any member of the public, if requested. If a subsequent tranche is classified as a category A project under ADB’s SPS 2009, the draft EIA report for the tranche, will be posted on ADB’s website, at least 120 days before the approval of the PFR. 42. Social Assessment report in its resettlement framework has suggested establishment of Social and Environmental Safeguards Management Unit (SEMU) at State level and Social and Environmental Safeguards Implementation Unit (SEIU) (staffing structure still under discussion). SEMU shall, during the preparation of the relevant environmental assessment

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and planning stage discuss and agree on a grievance redress mechanism in consultation with other stakeholders, and maintain in place during the construction and operations to the end of the project. The grievance mechanism shall take into account specific cultural attributes as well as traditional mechanisms for raising and resolving issues. 43. The grievance redress system will include a system by which parties affected by project activities, could raise their concerns to contractors/project developers, relevant government officials at different levels (if required), independent parties, and officers of the SEMU/ State Agency including environmental and social safeguard specialists, as needed. 44. SEIU formed at the IVC level to deal with land and compensation disputes and grievances, will also be a forum to address environmental grievances. The Project Developer and stakeholders should also be aware of judicial and administrative mechanisms available in the country for resolution of disputes, and should not impede access to these mechanisms. Necessary capacity building measures should be incorporated in the project implementation for farmers and other affected weak and poor people will become aware of their rights and responsibilities towards the project. SEIU should meet periodically and maintain minutes of the meeting. State Agency representative should have representation on both SEMU and SEIU. 45. A Grievance Action Form (GAF) which at a minimum will contain the following will be used to record all grievances and actions taken. The information to be recorded in this form will contain (i) basic information about the affected person (name, address, contact number); (ii) date of last disclosure meeting; (iii) category of grievance filed (legal, social, environmental, technical/engineering, financial, etc.); (iv) detailed description of grievance; and (v) type of action taken (resolved at the SEMU/SEIU or referred to higher authorities. The GAF will be filled out by the SEIU member receiving a grievance and signed by the affected party and the receiver of the complaint. The affected party will receive a copy signed by both. F. Institutional Arrangements and Responsibilities

46. The following review procedure will be adopted to facilitate identification and mitigation of potential environmental problems/risks related to each subproject:

State Agency’s (Implementing Agency) through the respective PMU's Responsibilities

At the submission of PFR- using the REA's categorize the project and submit the appropriate environmental assessment (either IEE or EIA);

Incorporate appropriate clauses in the Request for Proposal (RfP) for identification of the Project Developer that will clearly spell out his social and environmental responsibility of due diligence, impact assessment, mitigation measures, consultative and participative requirements and monitoring;

Ensure that the environmental categorization meets Government of India’s and ADB's requirements. The Project Developer would be responsible to take the project through screening and scoping phases through State Expert Appraisal Committee (SEAC), based on category, perform the appropriate level of environmental assessment and carry out public consultation as per provisions of the regulation and obtain EC. Project developer should furnish copies to State Agency of all documents submitted to

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regulatory agencies and a copy of EC, Consent to Establish, Consent to Operate, etc. at appropriate stages of the project;

Review updated EIA or IEE and EMP prepared by the Project Developer and ensure these are included in contracts for construction;

Participate in stakeholder consultation and grievance redress process. Arrange to inform and consult affected persons; and

Monitor implementation of the EMP and report to ADB on environmental monitoring performance.

ADB’s Responsibilities

Re-confirm, or re-classify the project and confirm project category and type of Environmental Assessment (IEE or EIA) required;

Ensures State Agency informs and consults as prescribed in SPS. Review and clear EIA or IEEs and EMP;

Monitor the implementation of mitigation measures through project review missions, and conduct environmental performance monitoring, as necessary; and

Upload the draft EIA 120 days before approval of the PFR and the final EIA/or IEE and monitoring reports upon receipt.

Monitoring and Reporting 47. State Agency (through PMU) and Project Developer will ensure that ADB and SPCB/ SEAC is given access to undertake environmental monitoring of all subprojects. However, the Project Developer of a subproject is responsible for implementing the agreed monitoring and reporting to the PMU who in turn will submit bi-annual monitoring reports to ADB and to the Approving Agency on the implementation of environmental mitigation measures, described in the IEE report and EMP. The PMU will also be responsible to monitor the project developer’s performance in meeting environmental safeguards. If State Agency does not have the requisite staff to monitor the implementation of the EMP, State Agency could obtain consultants' services through the project. 48. Quarterly progress review reports submitted by the State Agency/Project Developer to ADB will also include the progress of environmental monitoring and highlight any other environmental issues that may have arisen during implementation, and also the measures taken to address them. The State Agency/Project Developer is responsible for ensuring that all environmental assessment documents, including the bi-annual environmental monitoring reports, are maintained systematically as part of the subproject-specific record.

Staffing Requirements and Budgeting

49. The PMU's will have to engage suitably qualified environmental professionals during the entire period of project implementation to ensure proper implementation of this EARF. Each PMU, (possibly through its TAG) will engage at a minimum one environmental consultant each. Other costs involved will be that required for operating the Environmental Assessment and Review Framework which should cover the following activities:

(i) Conducting IEE or EIA studies, preparing and submitting reports and public consultation and disclosure;

(ii) Implementation of Environmental Monitoring Plans (EMP).

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50. For budgeting purposes it is assumed that the subsequent tranches will be category B. Implementation of EMP will be the project developer's costs and it is not indicated here, however, monitoring will be the responsibility of the PMU as well. Indicative costs for implementing the EARF are:

Item Quantity Unit Cost Total Cost

USD USD

1. PMU staff

Environmental Safeguards staff 84 man months/staff X 2 states = 168 man months

$ 1000 unit $ 168,000

4. Other Expenses

Environmental Assessments Minimums of four EAs based on proposed tranches at range of $ 10,000 - $30,000 per tranche

*

$ 10,000- 30,000

$ 40,000-120,000

Public Consultations Several consultations estimated at $10,000 per tranche

$ 10,000 $40,000

TOTAL (US$) 248,000-328,000

* Cost of environmental assessment will vary depending on data availability and additional studies required