environmental monitoring report...sanjeev ghai, chief general manager ritr tfin7 : 8 if ham, frlit9...

Environmental Monitoring Report Environmental Safeguards Data Audit Sheets 2012

IND: India Infrastructure Project Financing Facility II Prepared by India Infrastructure Finance Company Limited This environmental monitoring report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

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India Infrastructure Finance Company Limited (A Govt. of India Enterprise) IIFCL

ISO 9001:2008

IIFCL/ESMU/2012-13we Date-18 th April 2013

To

Mr. Cheolsu Kim, Principal Financial Sector Specialist, Financial Sector, Public Management and Trade division, South Asia Department, Asian Development Bank, 6 ADB Avenue, Mandaluyong City, 1550 Metro Manila, Philipines

Dear Sir,

Sub: Submission of Environmental Safeguards data Audit Sheets:

Please find the enclosed document for your kind Perusal

1) Environmental safeguards data audit sheets of 13 Sub-projects under L2586/ L271 7/L2822;

Thanking You,

v..

Sanjeev Ghai, Chief General Manager

ritr TFIN7 : 8 If Ham, frliT9 ZtRi 737, 18&20, WT.-0T 11ittf 10, it-110001 TNN : 91-11-23730270, 23708263-64 thRi : 91.11- 23766256, 23730251 Regd. Office :8th Floor, Hindustan Times House, 18&20, Kasturba Gandhi Marg, New Delhi-110001 Phone : 91-11-23730270,23708263-64 Fax:91-11-23766256,23730251

ENVIRONMENTAL AUDIT RECORDING SHEET FOR

IMPLEMENTATION OF ENVIRONMENTAL SAFEGUARD SYSTEMS (The form will continue for the project life)

Reporting Period Jan. to Dec.2012

A. SUB PROJECT BACKGROUND INFORMATION

1. Name of Sub-Project:

Design, Engineering, Finance, Construction, Operation and Maintainance of Khalghat – MP/Maharastra Border Section on NH 3 from Km.84.700 to Km 167.500 in Madhya Pradesh under NHDP Phase IIIA on Build, Operate & Transfer (BOT) Basis.

2. Name of Concessionaire / SPV:

SEW Navyuga Barwani Pollways Pvt. Ltd.

3. Name of Lead Bank and other Co-Lenders

State Bank of India as Senior Lenders along with the other lenders Andhra Bank, the State Bank of Bikaner and Jaipur, State Bank of Mysore, Union Bank of India and India Infrastructure Finance Company Ltd.

4. Contact Details: ESMU / IIFCL

Mr. Sanjeev Ghai, CGM, & Head ESMU [email protected]

5. Location:

Madhya Pradesh

6. Sector / Sub-Sector:

Highway Roads / Widening and Strengthening

7. Sub-loan US$:

Till date disbursed amount is US$ 25687269.26

8. Status of implementation:

Project achieved COD on 4th April 2011

9. What ADB policies on safeguards cover this subproject?1

Environment Policy 2002

10. Safeguard category:

Environment: Category B

11.Were any environmental and social due diligence undertaken by IIFCL?

Yes, Environmental and Social Due Diligence (ESDD) was completed in January 2010.

12.Number of IIFCL safeguard site visits • Safeguard due diligence site visits by the Environmental and Social safeguard specialists during 2nd week of December 2009 for field verification of the environmental conditions reported in the EA report, consultations with concessionaire, and local offices of the regulatory agencies.

• In addition to the safeguards site visits, The Lenders Engineers (LE) undertake Quarterly site visit to sub-

1 Subprojects approved under LN 2404-IND (approved on 20 Dec. 2007), LN 2509-IND (approved on 24 Feb. 2009), LN 2586-IND

(approved on 27 Nov. 2009) are required to comply with the Environment Policy 2002, Policy on Involuntary Resettlement (1995), and Policy on Indigenous Peoples (1998). Subprojects approved under LN 2717-IND (approved on 7 Dec. 2010) are required to comply with ADB Safeguard Policy Statement 2009.

mailto:[email protected]�

project for monitoring the following aspects of the project.

- Physical Progress; - Financial progress; - Status of clearances, Health & Safety aspects - Environmental Issues - Land acquisition status of the project, - Overall review and assessment of the project

13. Milestones Audited in Previous Years This is the first audit.

14.Products Placed for Audit in the Current Year Environmental and Social Safeguard Monitoring B. MEMO TO BOARD 1. What are the significant environmental and

social issues identified in Memo to Board? • No significant environmental and social issues were

identified in the memo to board; • In Environmental Due Diligence, no significant

environmental issues identified; • The sub project complied with the required national

and local environmental clearances as well as permits and approvals during project implementation.

• Periodical environmental management and monitoring during the project, implemented by the concessionaire.

• Due diligence site visit findings observed that the sub-project has no major outstanding issues with respect to environmental.

2. Does the Memo adequately flag mandatory requirements for environmental and social compliance? Are all compliance conditions fully met prior sending Memo to the Board?

• Yes memo adequately flags mandatory requirements for environmental and social compliances as part of the disbursement condition.

• Pre-construction regulation and approvals (e.g. Environmental Clearance, Forest clearance etc.) were obtained during Construction stage

• The sub-project implemented with all the required statutory/regulatory approvals and the same has been confirmed during the safeguard due diligence.

C. ENGAGEMENT DOCUMENTS WITH LEAD BANK / SPV

1. Any environmental assessment report (including environmental management plan), involuntary resettlement plan, or Indigenous Peoples plan, or audit reports reviewed

As part of DDR preparation following documents were reviewed: • Environmental Impact Assessment report including

Environmental Management Plan; • Information pertaining to EMP implementation; • Environmental Monitoring Report

Overall the EIA/EMP reports were found substantive in their content and adequately cover all the aspects of mitigation measures including a cost provision of 49 million rupees for environmental management and monitoring during the construction phase.

2. Is IIFCL's ESSF included as mandatory

requirement in legal documents? As part of the legal document the E&S conditions is included under CLA Article (V) Conditions for pre- disbursement 5.2 (I) as: “The Borrower shall have obtained all necessary statutory and other Government Approvals………….. including all necessary environmental clearances and other clearances from the appropriate authorities …………..evidence of fulfillment of such conditions.” As per EPC Contract, it has been mentioned that the EPC Contractor will comply with all applicable permits and applicable laws in the performance of the contractor’s obligations under this EPC contract, will obtain at its cost, all the necessary environmental clearances, cut the trees and carry out compensatory afforestation. As per sub-clause 4.4 for Environmental Measures, the contractor agrees to conduct his activities in connection with the contract in such a manner so as to comply with the environmental and social management plan and assume full responsibility for measures, which are required to ensure such compliance.

3. Do the legal documents reflect EMP in an implementable and verifiable form?

In the legal document it is mentioned that all the labour/industrial laws/other applicable laws, rules, regulations, orders of various authorities shall complied. This also includes Environmental clearance. • Environmental Clearance requires compliance to EMP; • The EIA report of the project contained an

implementable EMP followed during implementation 4. Are the EMP requirements adequately covered in Concession Document / Construction Agreement /O&M Agreement/Subproject Developer Agreement

• The EMP requirements are reflected in EIA; • These requirements are linked as per the legal

requirements of environmental clearance; • The requirement of environmental clearance is reflected

in these agreements.

5. Were the applicable environmental and social safeguard requirements and their implementation discussed with the concessionaire?

Yes, the applicable environmental and social safeguard requirements were discussed with the concessionaire.

6. Were any conditions or covenants related to environmental and social issues made along with the sub loan (e.g. concession document, construction agreement)?

The conditions and covenants that are included in the mentioned agreement generally include that all the applicable laws of land related to Environmental safeguard required to be followed.

7. Has the concessionaire/Lead Bank implemented the Environmental Management Plan (EMP), resettlement plan (RP) or Indigenous Peoples Plan (IPP), were applicable, before or during construction and/or operation?

• The Environmental Management compliance shows that concessionaire has taken adequate action to implement Environmental Management measures; confirmed during the safeguard DDR and subsequent review.

8. Does the subproject comply with the applicable government requirements (e.g., environmental clearance was issued, applicable permits and licenses issued, etc.)?

• The sub-project complies with the applicable government requirements as confirmed from Environment safeguard DDR.

• During review the same were rechecked and confirmed.

9. Are all significant environmental issues covered and well flagged in the EMP?

• As such there is no significant issue identified in the project; and,

• The EMP is in implementable form and substantially covers the necessary mitigation measures.

10. Was Public Hearing if applicable conducted as per EIA Notification of MoEF?

Public consultations conducted at Khalghat, Nimrani, Thikri, Bakwadi Village, Balsamund, Sendhwa and Julwania during the environmental studies to disseminate the project information and to record the views/aspirations of the local people along this NH section.

11.Have outcomes of Public Hearing appropriately reflected in the EMP?

• Issues observed in Public consultations pertaining to Planning Stage and relevant to construction stage reached has been addressed.

12.Is the EMP adequately costed and reflected so in the financial appraisal?

• A cost provision of 49 million rupees has been allocated for environmental management and monitoring during the construction phase.

D. EMP IMPLEMENTATION 1. Is environmental and social monitoring

conducted as specified in the EMP/RP/IPP? What are IIFCL’s observations on the monitoring results?

• Environmental monitoring carried out in the project during the construction stage; confirmed during safeguard DDR preparation

• EPC Contractor has outsourced the job of environmental monitoring to an Environmental Laboratory namely M/s. Chouksey lab, Indore. As per the report, the levels of environmental quality parameters observed within the permissible limits as per CPCB standards, at Project locations.

2. Is the concessionaire/Lead Bank submitting

safeguard monitoring reports to IIFCL on a regular basis?

• The lenders engineer report received from lead bank mentioned about the traffic operation & safety and Environmental issues.

• The report also covered the Status of operation stage Statutory Compliances i.e. Standard Fire and Special Perlis Policy etc.

3. For category A subprojects, were safeguards-related documents such as EIA, RP and IPP, or audit reports made publicly available, in addition to posting on ADB’s website?

Not Applicable as the sub-project considered under Category B.

4. Were there major accidents or incidents during project implementation? What measures were introduced to prevent recurrence?

Only one accident classified under fatal in the report of Month of November 2012.The Incident management system of concessionaire is aimed to take immediate response measures to any incident occurring in the corridor.

5. What key safeguard issues or complaints from affected people were identified? What were the recommendations for improvement?

During public consultation peoples issues were concerned mainly on the aspect of Road safety during construction and operation phase the same have been given due concern during implementation and operation phase.

6. What are the outstanding safeguard requirements for follow up or corrective action plan (CAP) to be prepared by the concessionaire or Lead Bank, if any?

During DDR and desk review the sub-project has not observed any major outstanding issues with respect to environmental safeguards.

7. Is the subproject compliant with applicable national/local environmental requirements?

• The sub-project comply with the applicable government requirements during construction as confirmed from safeguard DDR;

• During desk review the same were rechecked and confirmed

8. Is the subproject compliant with ADB environmental assessment requirements (Environment Policy 2002)?

Yes the subproject is responsive to ADB’s environmental safeguard requirements. It is observed that:

• An EIA/EMP study has been taken up for the project; confirmed during safeguard DDR preparation and desk review

• The sub-project complies with all applicable government regulations;

• The project road does not pass through any protected area like Wildlife Sanctuary, National Park, Bio reserve etc.

• There are no archeological monuments and sites within corridor of impact for this project;

• The information of the project and its environmental impacts and mitigation measures proposed are adequately disclosed to the local people through formal & informal public consultations.

9. Has the Lead Bank / Subproject Developer implemented all the EMP measures covered in the contracts?

•The sub-project complies with all the national regulatory requirements; confirmed from safeguard DDR and desk review and, •Most of the EMP measures are being completed.

10. Has the agency for environmental monitoring been appointed?

Yes, monitoring agency has been appointed for environmental monitoring during construction stage.

11. Observations on environmental monitoring, interpretation and reporting:

The monitoring results are observed within permissible limits.

12. Complaints received from the public were resolved or needing follow-up action;

No complaints received. As informed by developer small issues/concerns are resolved locally.

13. Deployment of staff to monitor implementation of environmental mitigation measures from the contractor, concessionaire and NHAI.

• The overall implementation responsibility of the EMP lies with the Project Director of NHAI. The PD is supported by the Environment Officer of NHAI. From the concessionaire end, the Chief Project Manager through his Environmental Officer and package wise HSE Engineers of the contractor take care of the implementation of the Environment, Safety and labor related aspects. Chief Project manager of EPC Contractor is responsible for implementing the EMP during all phases of construction and ensures that all subcontractors are aware of and comply with the EMP.

14. Is the Lead Bank/Subproject Developer submitting reports to IIFCL and other lenders on a regular basis?

• The periodic lenders engineer’s report received from the lead bank, reporting the Information in regard to safe guard’s implementation status.

15. Observations on the EMP monitoring mechanism

• Periodical environmental management during the project operation is being carried out by the concessionaire.

• The EMP monitoring during construction stage was found adequate

16.Are there any new environmental issues identified during project implementation, and/or after technical closure? If so, how are these issues addressed?

No new Issue

17.Has the Lead Bank/Subproject Developer taken note of the new issues and implemented appropriate mitigation measures

Not Applicable

E Conclusion on environmental safeguard compliance status of subproject

• The widening / up gradation of this NH section have no major significant environmental issues as confirmed during DDR.

• The sub project has obtained all the required national and local environmental clearances as well as permits and approvals.

• Periodical environmental management work is being carried out by the concessionaire.

• Based on the due diligence findings and desk review the sub-project has no major outstanding issues with respect to environmental safeguard.

• The Current Sub-project therefore appears not to involve significant reputational risks to ADB funding on environmental safeguards.

.

Names of audit team members: Gyanesh K Shukla Environmental Safeguard Specialist Reviewed by: Mr. Sanjeev Ghai, CGM, & Head ESMU Date of subproject audit: This audit is based on the information/documents provided by

developer. Date of Submission 14/01/2013 (Initial submission)

15/03/2013 (Revised Submission)

ASSESSMENT OF ENVIRONMENTAL SAFEGUARD COMPLAINCE FOR IIPFF-II, TRANCHES I&II

A. ENVIRONMENTAL SAFEGUARD

No. Company Name

Subproject Name Environmental Safeguard Due Diligence Compliance Status vis-à-vis ADB Safeguard

Policies

Environmental Safeguard

Compliance Monitoring and

Review by ADB

Action Required by IIFCL to

Ensure Compliance

1

SEW Navyuga Barwani Pollways Pvt. Ltd.

Design, Engineering, Finance, Construction, Operation and Maintainance of Khalghat – MP/Maharastra Border Section on NH 3 from Km.84.700 to Km 167.500 in Madhya Pradesh under NHDP Phase IIIA on Build, Operate & Transfer (BOT) Basis.

• The sub project has obtained all the required national and local environmental clearances as well as permits and approvals. • Periodical environmental management work is being carried out by the concessionaire. • Based on the due diligence findings and desk review the sub-project has no major outstanding issues with respect to environmental safeguard. • The Current Sub-project therefore appears not to involve significant reputational risks to ADB funding on environmental safeguards.

Overall the sub-project is in compliance with the applicable government and ADB safeguard requirements

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Reporting Period: January 2012-December 2012 A. SUB PROJECT BACKGROUND INFORMATION 1. Name of Sub-Project:

Four laning of Pune Solapur section of NH-9 from Km 40.000 to Km 144.400 in the state of Maharashtra under NHDP Phase III on DBFOT basis.


Pune Solapur Expressways Private Limited.


IDBI Bank Ltd (Lead Bank) and other lenders are IIFCL,Bank of Baroda,Canara Bank, Andhra Bank, Indian Bank,ICICI,Yeas Bank, PNB,UBI and Bank of Maharastra.


Mr. Sanjeev Ghai, CGM & Head ESMU , [email protected]

5. Location:

Pune-Solapur Section of NH-9 in the State of Maharastra


Highways and Road Widening and Strengthening

7. Sub-loan :

99.4 crore


Progress achieved up to December 2012 is 84.96%.


Environment Policy (2002)



11. Were any environmental and social due diligence undertaken by IIFCL?

Yes, Environment and Social Due Diligence (ESDD) was completed by IIFCL in May 2011. • As part of the preparation of the ESDDR, the sub-project

was visited by the Environmental and Social safeguard specialists of IIFCL during 12th-13th of January, 2011

• During the ESDD, the key Environmental documents and various regulatory clearances and permits were checked by IIFCL which mainly comprised following documents: (i) Six monthly compliance report submitted to

MoEF(for the period of October, 11 to March,12)

(ii) Monthly HSE Report , July 12 (iii) Environmental Monitoring Report, June 12 (iv) Other information provided regarding special

measures taken for Environment protection


(approved on 27 Nov. 2009) are required to comply with the Environment Policy 2002, Policy on Involuntary Resettlement (1995), and Policy on Indigenous Peoples (1998). Subprojects approved under LN 2717-IND (approved on 7 Dec. 2010) are required to comply with ADB Safeguard Policy Statement, 2009.


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12. Number of IIFCL safeguard site visits • IIFCL has undertaken one safeguard site visit before

preparation of ESDDR. Further, during annual monitoring, site visit was undertaken by Ms. Ruchi Malik (Environment Specialist) and Ms. Rumita Choudhary (Social safeguard Specialist) during 30th to 31st August 2012.

• During Construction phase, LIE visits project site on quarterly basis to monitor physical progress and record critical issues, if any.

• LE report also mentions about the Environmental permits and approvals obtained.


14. Products Placed for Audit in the Current Year Environmental and Social Safeguard Implementation monitoring.

B. MEMO TO BOARD 1. What are the significant environmental and social

issues identified in Memo to Board? • No significant environmental and social issues are

identified in the memo to board; • Also in Environmental Due Diligence, no significant

environmental issues identified. • The sub-project has the required statutory/regulatory

approvals confirmed during the safeguard due diligence.

• There is no significant environmental issues which are likely to be impacted due to sub-project implementation;

• The sub-project has a project specific EMP.


• Yes, memo adequately flags mandatory requirements for environmental and social compliances.

• Pre-construction regulation and approvals (e.g. Environmental Clearance, Forest clearance etc.) are met

• Construction stage approvals are also met during the construction stage (Consent and Authorisation);

• The sub-project has all the required statutory/regulatory approvals confirmed during the safeguard due diligence;



As part of DDR preparation following documents were reviewed: • Environment Assessment report including Environment

Management Plan were reviewed and found adequate; • Further the other clearances and permits are reviewed.

Overall the environment safeguard measures are met in the project.

2. Is IIFCL's ESSF included as mandatory requirement

in legal documents? As part of the legal document the E&S conditions is included under CLA as: “The Borrower shalt have obtained all necessary statutory

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and other Government Approvals as required under the Concession Agreement and fulfilled all the conditions stipulated there in…………….. and other clearances from the appropriate authorities, which shall be subject to the Lars verification on The Borrower shall have delivered to the Letts copies a Such Government Approvals.” As part of the EPC contract between the concessionaire and the contractors the Safety, Environment and Labour related measures are being taken care as per sub-clause 19.1.The clause specifically mentions that contractor takes all responsibility to implement the environmental mitigation measures provided for in the “Environment Managament Plan” in contract in accordance with objective, procedures and other provisions set forth therein and the contractor shall not take any action which would prevent or interface with such implementation.

3. Do the legal documents reflect EMP in an

implementable and verifiable form? • In the legal document it is mentioned that all the

applicable permits to be obtained. This also includes Environmental clearance.

• Environmental Clearance requires compliance to EMP;

• The EIA/EMP report contains an EMP in an implementable form

• A cost provision of INR 15.6 million has been proposed for Environment Management and monitoring plan. During site visit, it is observed that expenditure has been made for setting up of labor camps, sanitation facilities as well as environmental monitoring, plantation etc. during construction stage.

• As per the latest EMP Expenditure status received vide mail 11th March, 2013 from Project developer, amount of 6.68 Crores has been spent towards EMP implementation related activities.

4. Are the EMP requirements adequately covered in Concession Document / Construction Agreement / O&M Agreement / Subproject Developer Agreement





Yes, the applicable environmental and social safeguard requirements were discussed with the concessionaire;



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• As observed during site visit and EMP Compliance related documents received from Project proponent, its noted that concessionaire has implemented most of the construction stage EMP measures including soil erosion measures, Emission from construction vehicles and machinery, Dust and Nuisance control measures and monitoring of environmental parameters etc.


• The sub-project comply with the applicable government requirements as confirmed from safeguard DDR;

• During annual monitoring, the same were rechecked and confirmed;


• As such there is no significant issue in the project; and, • The EMP as given in the EIA report is in implementable

form and substantially covers the necessary mitigation measures.


• Public consultations have been carried out during the month of May and June 2006 at various places along the Project corridor. The district officials, representatives from local bodies, politicians and large number of project affected persons have attended the meetings.

11. Have outcomes of Public Hearing appropriately reflected in the EMP?

• Local people’s view have been given due concern for the selection of environmental mitigation measures in the road design aspects. Notable among them are the selection of pedestrian underpasses, road side drainages along the project alignment, selection of bypasses. During site visit it observed that informal public consultation also conducted in the project implementation stage as well.

12. Is the EMP adequately costed and reflected so in the financial appraisal?

A cost provision of INR 15.6 million has been proposed for Environment Management and monitoring plan. During site visit, it is observed that substantial expenditure has been made for setting up of labor camps, sanitation facilities as well as environmental monitoring etc. during construction stage. As per information received from project All four labour camps at site are provided with sanitation, drinking water, other facilities and cost of such facilities are included in civil contractors cost .

D. EMP IMPLEMENTATION 1. Is environmental and social monitoring conducted as

specified in the EMP/RP/IPP? What are IIFCL’s observations on the monitoring results?

The Environmental Monitoring has been conducted by an Environmental Laboratory i.e.M/s Green Enviro. The monitoring agency monitors the Ambient Air, Noise, Source Emission, DG Noise etc. The measured results are within the permissible limits of Air and Noise quality as per the Indian Standards. The frequency of testing of parameters is on quarterly basis.

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2. Is the concessionaire/Lead Bank submitting safeguard monitoring reports to IIFCL on a regular basis?

The monitoring of environmental aspects being implemented by the contractors and is regularly monitored by the PMC team of concessionaire through its Environmental Specialist who visits the site to monitor the compliance of EMP implementation also. Such monitoring and EMP compliance report is submitted to NHAI at an interval of six months The periodic lenders engineer (LE) report received from the lead bank reporting the Information of safe guard’s implementation status.


Not Applicable, since the sub-project considered as Category B.


• Monthly accident report is being sent to NHAI showing also the causes of accidents;

• As per the mail received from Project developer, Accident analysis status has been provided for the period between Yr 2009 to Yr 2012 which indicates reduction in total accidents no. along with reduction in major accidents and fatalities.

• Black spots have been identified throughout the highway and precautionary measures have been adopted to control accidents at these locations. Following are the few of measures as taken by developer to prevent accidents recurrence: (i) Provision of Service Road for local traffic and

slow moving traffic (Tractors Trolley) (ii) Pedestrian Underpass (PUP) (iii) Vehicle Underpass (VUP) (iv) Flyovers (v) Signage and road marking for road users (vi) Emergency Services available at Toll Plaza (vii) Helping hand by O&M team during road

emergency


• Progress achieved up to December 2012 is 84.96%. and as far no major issues or complaints related with Environmental safeguards been received in the project;


During DDR and audit site visit the sub-project has no major outstanding issues with respect to environmental safeguards.



• During audit the same were rechecked and confirmed;



• An EIA/EMP study has been taken up for the

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project; confirmed during safeguard DDR preparation;


• This segment of NH section has no major significant environmental impact.

• The proposed project alignment including bypasses and new alignments and realignment sections do not pass through any of the notified environmental sensitive areas.

• Public consultation was carried out under the project ;


• Compliance to environmental permits are periodically being sent to the lenders with physical & financial progress including IIFCL through lender’s engineer report;

• The sub-project complies with all the national regulatory requirements;

• The project is now in Construction stage and most of the EMP measures are implemented.


Yes, agency has been appointed for environmental monitoring during construction stage of the project i.e M/s Green Enviro.


The monitoring results are reported to be within the permissible limits.


No complaints were received from the public on Environmental safeguards.


• As part of the project, Independent Engineer has been appointed in the project and the Environmental Expert of the IE monitors the implementation of EMP and reports the same to PD, NHAI.

• From the concessionaire and contractors end, the Project Manager through Environment-Health and Safety officers take care of the implementation of the Environment, Safety and Labor related aspects.


• The report from lenders engineer is submitted every quarter to IIFCL and other lenders which also includes the Information on Environment & Safety approvals status apart from overall review and assessment of the project along with status of physical and financial progress.

15. Observations on the EMP monitoring mechanism • During site visit and discussion with the concessionaire, the implementation of EMP and environmental monitoring system were found adequate.

16. Are there any new environmental issues identified during project implementation, and/or after technical closure? If so, how are these issues addressed?

No new Issue

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17. Has the Lead Bank/Subproject Developer taken note of the new issues and implemented appropriate mitigation measures

Not Applicable


• The widening and up gradation of this NH section has no major significant environmental impact.

• The sub project may also have a positive GHG emission reduction due to less fuel consumption for the same traffic density.

• The sub-project has the required national and local level environmental clearance as well as permits and approvals for project implementation.

• This segment of NH-9 section has no National Park or Wildlife Sanctuary within a radius of 10 km.

• The project alignment does not pass through any of the notified environmental sensitive areas.

• Based on the site visits and due diligence findings, the sub-project has no significant environmental safeguard issue.

Names of audit team members: Ms. Ruchi Malik (Environment Specialist),IIFCL and Mr. Gyanesh Kumar Shukla, Environment Development Consultant, IIFCL

Reviewed by: Mr. Sanjeev Ghai, Chief General Manager, IIFCL Date of subproject audit: This annual audit is based upon site visit between between 30th

to 31st August 2012 and subsequent discussion & information obtained from the project developer.

Date of Submission: March 13,2013(Initial Submission) March 15,2013(Final Submission)

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No. Company Name

Subproject Name Environmental Safeguard Due Diligence

Compliance Status vis-à-vis ADB Safeguard

Policies

Environment Safeguard

Compliance Monitoring and Review by ADB


Ensure Compliance

1

Pune Solapur Expressways Private Limited.

Four laning of Pune Solapur section of NH-9 from Km 40.000 to Km 144.400 in the state of Maharashtra under NHDP Phase III on DBFOT basis.


• The sub project may also have a positive GHG emission reduction due to less fuel consumption for the same traffic density.

• The sub-project has the required national and local level environmental clearance as well as permits and approvals for project implementation.



• The institutional arrangement available for the implementation of EMP appears to be adequate as there is a sufficient number of staff available for implementing and monitoring the EMP implementation.

• Periodical environmental management and monitoring during the project implementation is being carried out by the concessionaire.

• Based on the site visits and due diligence findings, the sub-project has no significant environmental safeguard issue.



IMPLEMENTATION OF ENVIRONMENTAL SAFEGUARD SYSTEMS (The form will continue for the project life) Reporting Period Jan. to Dec.2012



Six Laning of the existing road from Km 364.125 to Km 396.000 and Km 0.000 to Km 58.245 (Approximately 93.560Km) on the Kishangarh –Ajmer-Beawar Section of NH-8 in the State of Rajasthan by build, operate and transfer (“BOT”) under NHDP phase-III on Design on Design, Build, Finance, operate and Transfer (DBFOT) Basis.


Soma Isolux Kishangarh Beawar Tollway Pvt. Ltd.


Central Bank of India as Senior Lenders along with the other lenders India Infrastructure Finance Company Ltd., Bank of Maharashtra, the State Bank of Bikaner and Jaipur , Corporation Bank, Dena Bank, Indian Overseas Bank, Punjab National Bank, State Bank of Travencore and UCO Bank.


Mr. Sanjeev Ghai, CGM & Head ESMU, [email protected]

5. Location:

Kishangarh-Ajmer-Beawar Section of NH-8



7. Sub-loan US $:



The project is under implementation and the current physical progress is 86.26%.


Environment Policy (2002)




Yes, Environmental and Social Due Diligence (ESDD) was completed by IIFCL in October 2010.

12.Number of IIFCL safeguard site visits • Safeguard due diligence site visit was undertaken on 15th & 16th of September 2010 by IIFCL’s




Environmental and Social Safeguard Specialist. • As part of annual audit, site visit was undertaken on 28th

and 29th of August 2012 by IIFCL’s Social Safeguard Specialist.

• In addition to the safeguards site visits, The Lenders Engineers (LE) undertake Quarterly site visit to sub-project for monitoring the following aspects of the project. - Physical Progress; - Financial progress; - Status of Environmental clearance, Approvals and

Permits - Land acquisition status of the project, - Overall review and assessment of the project


14.Products Placed for Audit in the Current Year Environmental and Social Safeguard Implementation monitoring.

B. MEMO TO BOARD 1. What are the significant environmental and

social issues identified in Memo to Board? • No significant environmental and social issues identified

in the memo to board; • Also in Environmental Due Diligence, no significant

environmental and social issues identified; • The sub-project has all the required statutory/regulatory

approvals confirmed during the safeguard due diligence; • There is no significant environmental issues which are

likely to be impacted due to sub-project implementation; • Also the sub-project has a project specific EMP.



• Pre-construction regulation and approvals (e.g. Environmental Clearance, Forest clearance etc.) are met;

• Construction stage approvals are to be met during the construction stage;

• The sub-project has all the required statutory/regulatory approvals confirmed during the safeguard due diligence



As part of DDR preparation following documents were reviewed: • Environmental Assessment report including

Environmental Management Plan; • Information pertaining to EMP implementation; • Environmental Monitoring

Overall the EIA/EMP reports are found substantive in their content and adequately cover all the aspects of mitigation

measures. Rs. 2.95 corres has been earmarked for EMP implementation.

Further, other clearances and permits were also reviewed. Overall the environment safeguard measures are met in the project.

2. Is IIFCL's ESSF included as mandatory requirement in legal documents?

As part of the legal document the E&S conditions is included under CLA Article – (V) for Pre-disbursement conditions 5.2 (I) as “The Borrower shall have obtained all necessary statutory and other Government Approvals, Applicable Permits including all necessary environmental clearances from the Ministry of Environment and Forests, ………………and fulfilled the conditions stipulated in such approvals and delivered to the Lenders copies of the same as required for the implementation and operation of the Project and same shall have been in full force and effect.” As part of the EPC contract between the concessionaire and the contractors the Safety, Environment and Labour related measures have also been taken care. As per section 13 of the EPC contract, the EPC contractors are liable to adhere to the relevant Environmental and Safety safeguards. This primary includes the adherence to (i) Environmental requirements stipulated in the project requirements and with all the environmental laws having application to the project including but not limited to standards for noise and vibration levels and air borne and water borne pollutants, (ii) The EPC contractors shall provide a suitably qualified and experienced person at the project site to act as Environmental Compliance Manager; (iii) The EPC contractor shall keep the project site and works in an orderly state; (iv) The EPC contractor shall develop, implement and administer a surveillance and safety program for providing a safe environment on or about the project and shall comply with the safety requirement as set forth in the schedule-L of the concession agreement. Further the EPC contractor shall provide Project Site safety plan to the concessionaire for approval. These plans would generally include the various safety arrangements to be taken by the EPC contractors.


In the legal document it is mentioned that all the labour/industrial laws/other applicable laws, rules, regulations, orders of various authorities shall complied. This also includes Environmental clearance. • Environmental Clearance requires compliance to EMP; • The EIA/EMP report contains an EMP in an

implementable form

4. Are the EMP requirements adequately covered in Concession Document / Construction Agreement / O&M Agreement / Subproject Developer


requirements of environmental clearance;

Agreement • The requirement of environmental clearance is reflected in these agreements.

5. Were the applicable environmental and social

safeguard requirements and their implementation discussed with the concessionaire?





• The EMP compliance shows that concessionaire has

taken adequate action to implement most of the EMP measures; confirmed during the safeguard DDR and annual audit site visit.


• The sub-project comply with the applicable government requirements as confirmed from Environmental safeguard DDR;

• During audit the same were rechecked and confirmed;



• The EMP as given in the EIA report is in implementable form and substantially covers the necessary mitigation measures.


The public hearing has been waived off for the road project through a recent notification. (Ref. EIA report pg.7-16). Public consultation were carried out in the villages i.e. Madan Ganj, Jetli, Gagwana, Ghughra, Parwat Pura, Sardana, Mangaliyawas, Lamana, Kharva, Peeplag Village, Samaliya Village and Beawar Bye Pass Junction during December 2005.


• The project has received Environmental Clearance (EC); • EC is granted once the EIA/EMP satisfies the measures

to be taken as per public demand. • Issues observed in Public consultations pertaining to

Planning Stage and relevant to construction stage, has been incorporated in the mitigation measures.


• Rs. 2.95 corres has been earmarked for EMP implementation budget

• The same has been considered in the EPC cost during the financial appraisal (Source: Discussed with the project developer).


conducted as specified in the EMP/RP/IPP? What are IIFCL’s observations on the monitoring

• Environmental monitoring is regularly carried out in the project during the construction stage; confirmed during safeguard DDR preparation; and also checked during the audit visit;

results? • The monitoring results are within the permissible limits.


• The safeguard aspects implemented by the contractors and regularly monitored by the environmental safeguard team of Concessionaire. Separate Environmental Management Cell working at project site under QMS manager (Luis Miguel Diaz).

• The Environmental monitoring reports as well compliance to environmental clearance conditions were periodically prepared and adequately documented by the concessionaire. These reports were submitted to MoEF.

• The report from lenders engineer is also submitted every quarter reporting the Information in regard to safe guard’s implementation status also.




• The concessionaire has their own organization Emergency Response System including three shift patrolling team and medical aid post & ambulance team.

• Monthly accident report is being sent to NHAI showing also the causes of accidents;

Necessary training is given to site persons to prevent recurrence.


People view have been given due concern for the selection of environmental mitigation measures in the road design aspects. Notable among them are the selection of pedestrian underpasses, road side drainages along the project alignment, selection of bypasses. People are adequately being informed through various stages of public consultation and notification for land acquisition





• During audit the same were rechecked and confirmed 8. Is the subproject compliant with ADB

environmental assessment requirements (Environment Policy 2002)?


• An EIA/EMP study has been taken up for the project; confirmed during safeguard DDR preparation;


• The project segment does not have a National Park or Wildlife Sanctuary within a radius of 10 km.

• The project alignment does not pass through any of

the notified environmental sensitive areas. • The information of the project and its environmental

impacts and mitigation measures proposed are adequately disclosed to the local people through public consultation.


•The sub-project complies with all the national regulatory requirements; confirmed from safeguard DDR and audit visit; and, •Most of the EMP measures are being completed. .


Yes monitoring agency was appointed for environmental monitoring during construction stage.






• During the construction stage adequate staff has been employed to monitor the environmental mitigation measures from contractor, concessionaire;

• During the operation stage the Operation and Maintenance team of concessionaire under the guidance of project manager will take care of Environmental mitigation measures.


• The report from lenders engineer is submitted quarterly including the Information on Environment, Safety approvals, implementation and measures.


• The EMP monitoring during construction stage was found adequate as regular compliance provided to MoEF;

• However the exercise needs to be extended in operation stage as well.


No new Issue


Not applicable



• The sub-project has all the required national and local level environmental clearance as well as permits and approvals for project implementation.



• As part of the DPR preparation adequate alternative measures has been undertaken for (i) minimum impact on environmental aspects; (ii) provide minimum disturbance to the structures, through selection of the widening options (e.g. LHS or RHS widening or concentric widening), selection of two bypasses (e.g. Sardana and Mangliawas Bypass) and construction of Vehicular underpass and pedestrian underpasses to cater to safe transport of the vehicles. Additionally various road safety measures and road furniture are also provided include traffic management measures and street lighting.

• People view have been given due concern for the selection of environmental mitigation measures in the road design aspects. Notable among them are the selection of pedestrian underpasses, road side drainages along the project alignment, selection of bypasses. People are adequately being informed through various stages of public consultation and notification for land acquisition.

• The concessionaire through their contractor is undertaking various environmental management measures to minimize the construction stage impact on air, water, soil and noise quality.

• Based on the site visits and due diligence findings, the sub-project has no major outstanding issues with respect to environmental safeguards.

• The Current Sub-project therefore does not appears to have any kind of reputational risk to ADB funding on environmental safeguards.

Names of audit team members: Gyanesh K Shukla, Environmental Safeguard Specialist Reviewed by:

Mr. Sanjeev Ghai, CGM & Head ESMU

Date of subproject audit: The audit has been done during site visit 28th and 29th of August 2012.

Date of Submission 14/01/2013 (Initial submission) 15/03/2013 (Revised submission)



No. Company Name


Compliance Status vis-à-

vis ADB Safeguard

Policies

Environmental Safeguard Compliance Monitoring and Review

by ADB

Action Required by

IIFCL to Ensure Compliance

1

Soma Isolux Kishangarh Beawar Tollway Pvt. Ltd.)

Six Laning of the existing road from Km 364.125 to Km 396.000 and Km 0.000 to Km 58.245 (Approximately 93.560Km) on the Kishangarh –Ajmer-Beawar Section of NH-8 in the State of Rajasthan by build, operate and transfer (“BOT”) under NHDP phase-III on Design on Design, Build, Finance, operate and Transfer (DBFOT) Basis.

• All statutory clearances and approvals are taken;

• No significant environmental issues identified;

• The concessionaire periodically send post clearance compliance report to MoEF;

• Periodic monitoring of EMP implementation and physical environmental parameters taken up during the construction stage;

• No specific grievances have been received.







4-laning of Gujarat/Maharashtra border-Surat-Hazira port section of NH-6 in the state of Gujarat to be executed as BOT (Toll) on DBFOT basis.


Soma Isolux Surat-Hazira Tollways Private Limited


Oriental Bank of Commerce as Senior Lenders along with the other lenders Union Bank of India, the State Bank of Bikaner and Jaipur , the Andhra Bank, Bank of Borada, Central Bank of India, Corporation Bank, Dena Bank, Indian Overseas Bank, Panjab National Bank, State bank of Hyderabad, State Bank of Travencore, UCO Bank and Union Bank of India.



5. Location:

Gujarat/Maharashtra border section of NH-6 and ends near Hazira Port in the State of Gujarat.



7. Sub-loan US$:



As per the status of June 2012 (49%) of physical progress has been achieved. The Commercial Operation Date (COD) is expected to be achieved shortly.


Environment Policy (2002) 1




Yes, Environmental and Social Due Diligence (ESDD) was completed by IIFCL in July 2011.

12.Number of IIFCL safeguard site visits • Safeguard due diligence site visits by the Environmental and Social safeguard specialists of IIFCL during 21-22nd




of March 2011. • As part of annual audit, site visit was undertaken on 3rd

and 4th of September 2012 by IIFCL’s Safeguard Specialists.

• In addition to the safeguards site visits, The Lenders Engineers (LE) undertake Quarterly site visit to sub-project for monitoring the following aspects of the project. - Physical Progress; - Financial progress; - Status of clearances, Health & Safety aspects - Land acquisition status of the project, - Overall review and assessment of the project




in the memo to board; • Also in Environmental Due Diligence, no significant

environmental and social issues identified; • The sub-project has all the required statutory/regulatory

approvals confirmed during the safeguard due diligence; • There is no significant environmental issues which are

likely to be impacted due to sub-project implementation; • Also the sub-project has a project specific EMP.





• The sub-project has all the required statutory/regulatory approvals confirmed during the safeguard due diligence.



As part of DDR preparation following documents were reviewed: • Environmental Assessment report including


Overall the EIA/EMP reports are found substantive in their content and adequately cover all the aspects of mitigation measures. Rs.12.6 million has been earmarked for EMP implementation.

Further, other clearances and permits were also reviewed. Overall the environmental safeguard measures are met in the project.


As part of the legal document the E&S conditions is included under CLA Article (V) Conditions for pre- disbursement 5.2 (I) as: “The Borrower shall have obtained all necessary statutory and other Government Approvals, Applicable Permits including all necessary environmental clearances from the Ministry of Environment and Forests, ………….and as may be required at the time of each Disbursement and fulfilled the conditions stipulated in such approvals and delivered to the Lenders copies of the same as required for the implementation and operation of the Project and same shall have been in full force and effect.” As part of the EPC contract between the concessionaire and the contractors the Safety, Environment and Labour related measures have also been taken care. As per section 13 of the EPC contract, the EPC contractors are liable to adhere to the relevant Environmental and Safety safeguards. This primary includes the adherence to (i) Environmental requirements stipulated in the project requirements and with all the environmental laws having application to the project including but not limited to standards for noise and vibration levels and air borne and water borne pollutants, (ii) The EPC contractors shall provide a suitably qualified and experienced person at the project site to act as Environmental Compliance Manager; (iii) The EPC contractor shall keep the project site and works in an orderly state; (iv) The EPC contractor shall develop, implement and administer a surveillance and safety program for providing a safe environment on or about the project and shall comply with the safety requirement as set forth in the schedule-L of the concession agreement. Further the EPC contractor shall provide Project Site safety plan to the concessionaire for approval. These plans would generally include the various safety arrangements to be taken by the EPC contractors.


In the legal document it is mentioned that all the labour/industrial laws/other applicable laws, rules, regulations, orders of various authorities shall complied. This also includes Environmental clearance. • Environmental Clearance requires compliance to EMP; • The EIA/EMP report contains an EMP in an

implementable form

4. Are the EMP requirements adequately covered in Concession Document / Construction Agreement /O&M Agreement/Subproject Developer Agreement










• The EMP compliance shows that concessionaire has

taken adequate action to implement most of the EMP measures; confirmed during the safeguard DDR and annual audit site visit.



• During audit the same were rechecked and confirmed.





As part of the statutory requirements public hearing has been conducted in the project in the districts of Surat and Tapi on 13.10.2009 and 21.10.2009 respectively. People have been informed in advance about the public hearing through advertising the public hearing notification one in Gujrati in “Gujarat Samachar” and in English in Times of India on 11.09.2009.




• Rs. 12.6 million has been earmarked for EMP implementation budget





• The Environmental Monitoring has been outsourced to M/s Microtech Systems & Services under the project. The monitoring agency monitors the Ambient Air, Potable Water, Soil, Noise, etc.

• The monitoring results are within the permissible limits.


• The safeguard aspects implemented by the contractors and regularly monitored by the environmental safeguard team of Concessionaire. The Environmental Monitoring has been outsourced to M/s Microtech Systems & Services. The monitoring agency monitors the Ambient Air, Potable Water, Soil, Noise, etc.


• The report from lenders engineer is also submitted every quarter. Information in regard to inclusion of safe guard’s implementation & monitoring in the same require improvements.




To be confirmed with developer


All the issues which mostly raised during public consultation were resolved. People view have been given due concern for the selection of environmental mitigation measures in the road design aspects. Notable among them are the Bypasses have been provided to avoid congested settlements of Vyara, Bajipur, Bardoli and Ena ,Junctions will be improved, Service Roads have been proposed and Vehicular / Pedestrian Underpasses have been proposed.





• During audit the same were rechecked and confirmed 8. Is the subproject compliant with ADB

environmental assessment requirements (Environment Policy 2002)?




• This segment of NH-6 section has no National Park or Wildlife Sanctuary within 10km on either side of the project road.


• The information of the project and its environmental impacts and mitigation measures proposed are adequately disclosed to the local people through public consultation.


•The sub-project complies with all the national regulatory requirements; confirmed from safeguard DDR and audit visit; and, •Most of the EMP measures are being completed.








• The overall implementation responsibility of the EMP lies with the Project Director of NHAI. The PD is supported by the Environment Officer of NHAI. During the site visit it has been observed that the EPC contractor team consists of Health Safety and Environmental personnel. Further the Environment Specialist of Independent Engineer monitors the implementation of EMP.

• During the construction stage adequate staff employed to monitor the environmental mitigation measures from contractor, concessionaire;

• During the operation stage the Operation and Maintenance team of concessionaire under the guidance of project manager will take care of Environmental mitigation measures.



• The report from lenders engineer is also submitted every quarter reporting the Information in regard to safe guard’s implementation status also.

15. Observations on the EMP monitoring

mechanism • The EMP monitoring during construction stage was

found adequate as regular compliance provided to MoEF;

• However the exercise needs to be extended in operation stage as well.


No new Issue


Not Applicable

E Conclusion on environmental safeguard

compliance status of subproject • The widening and up gradation of this NH section has no major significant environmental impact;

• The sub project may also have a positive GHG emission reduction due to less fuel consumption for the same traffic density;

• The sub-project has received the Environmental clearance, clearance for diversion of protected forest for 168.9960 ha and has also received the tree cutting permission for the protected forests and non-protected forest areas.

• This segment of NH-6 section has no National Park or Wildlife Sanctuary within 10km on either side of the project road.


• A cost provision of INR 12.6 million has been proposed for Environmental Management and monitoring plan. During site visit, it is observed that substantial expenditure has been made for setting up of labor camp sanitation facilities as well as environmental monitoring during construction stage. Road side as well as median plantation shall be taken up once the major construction works are completed.

• The concessionaire through their contractor is undertaking various environmental management measures to minimize the construction stage impact on air, water, soil and noise quality.


• The Current Sub-project, therefore appears not to involve significant reputational risks to ADB funding on environmental safeguards.

Names of audit team members: Gyanesh K Shukla Environmental Safeguard Specialist Reviewed by:

Mr. Sanjeev Ghai, CGM, & Head ESMU

Date of subproject audit: The audit has been done during site visit 28th and 29th of August 2012.

Date of Submission 14/01/2013 (Initial submission) 15/03/2013 (Revised Submission)



No. Company Name



vis ADB Safeguard

Policies


by ADB

Action Required by


1

Soma Isolux Surat-Hazira Tollways Private Limited

4-laning of Gujarat/Maharashtra border-Surat-Hazira port section of NH-6 in the state of Gujarat to be executed as BOT (Toll) on DBFOT basis.



• The concessionaire periodically sends post clearance compliance report to MoEF;

• Periodic monitoring of EMP implementation and physical environmental parameters is taken up during the construction stage;





Reporting Period Jan. to Dec.2012 A. SUB PROJECT BACKGROUND INFORMATION 1. Name of Sub-Project:

4-laining of MP/Maharashtra Border-Dhule Section of NH-3 from Km. 168.500 to Km.265.000 in the State of Maharashtra under NHDP Phase-III on BOT (Toll) Basis.


M/s Dhule Palasner Tollway Ltd.


Punjab National Bank as Senior Lenders along with the other lenders i.e. India Infrastructure Finance Company Limited, Allahabad Bank, Bank of Baroda, Corporation Bank, Dena Bank, Indian Overseas Bank, Oriental Bank of Commerce, State Bank of Bikaner and Jaipur, State Bank of Patiala and Syndicate Bank.


Mr. Sanjeev Ghai, CGM & Head ESMU , [email protected]

5. Location:

Dhule-Palasner section of NH-3 in the State of Maharastra



7. Sub-loan US$:

Till date disbursed amount is US$13515285.23


The sub-project has become operational since Feb.2012.

9. What ADB policies on safeguards cover this subproject?1 Environment Policy (2002)




Yes, Environment and Social Due Diligence (ESDD) was completed by IIFCL in June 2011. • As part of the preparation of the ESDDR, the sub-project was

visited by the Environmental and Social safeguard specialists of IIFCL during 16th-17th of March 2011,

• During the ESDD the key Environmental documents and various regulatory clearances and permits were checked by IIFCL.

• The revised ESDD was submitted in June 2011.

12. Number of IIFCL safeguard site visits • IIFCL has undertaken one safeguard site visit before preparation of ESDDR. Further, during annual audit, site visit was undertaken by Ms. Ruchi Malik (Environment Development Specialist) and Ms. Rumita Choudhary (Social safeguard Specialist) during 21st to 22nd August 2012.

• During Construction phase, LE visited site on quarterly basis 1 Subprojects approved under LN 2404-IND (approved on 20 Dec. 2007), LN 2509-IND (approved on 24 Feb. 2009), LN 2586-IND



to monitor physical progress and record critical issues, if any. • LE report also mentioned about the work site safety and traffic

management system. • LE report under Annexure D provided the Status of

Permission and Approvals. • EMP compliance Matrix provided by the developer.



B. MEMO TO BOARD 1. What are the significant environmental and social issues

identified in Memo to Board? • No significant environmental and social issues are identified in

the memo to board; • Also in Environmental Due Diligence, no significant

environmental and social issues identified. • The sub-project has the required statutory/regulatory

approvals confirmed during the safeguard due diligence. • There is no significant environmental issues which are likely

to be impacted due to sub-project implementation; • The sub-project has a project specific EMP


• Yes memo adequately flags mandatory requirements for environmental and social compliances.


• Construction stage approvals are also met during the construction stage;


C. ENGAGEMENT DOCUMENTS WITH LEAD BANK / SPV 1. Any environmental assessment report (including

environmental management plan), involuntary resettlement plan, or Indigenous Peoples plan, or audit reports reviewed




2. Is IIFCL's ESSF included as mandatory requirement in

legal documents? As part of the legal document the E&S conditions is included under CLA Article (V) Conditions for pre- disbursement 5.2 (f) as: “The Borrower shalt have obtained all necessary statutory and other Government Approvals as required under the Concession Agreernent and fulfilled all the conditions stipulated there in…………….. and other clearances from the appropriate authorities, which shall be subject to the Lars verification on The Borrower shall have delivered to the Letts copies a Such Government Approvals.”

3. Do the legal documents reflect EMP in an implementable

and verifiable form? • In the legal document it is mentioned that all the

applicable permits to be obtained. This also includes Environmental clearance.

• Environmental Clearance requires compliance to EMP; • The EIA/EMP report contains an EMP in an

implementable form • An EMP budget of Rs. 16.6 million has been

proposed for construction stage. During the site visit it has been observed that maximum expenditure has been made under the same.


• The EMP requirements are reflected in EIA; • These requirements are linked as per the legal requirements

of environmental clearance; • The requirement of environmental clearance is reflected in

these agreements.






• The EMP Compliance shows that concessionaire has implemented most of the construction stage EMP measures including dust suppression measures, sanitation facilities, erosion control measures and monitoring of environmental parameters.



• During audit the same were rechecked and confirmed; 9. Are all significant environmental issues covered and well

flagged in the EMP? • As such there is no significant issue in the project; and, • The EMP as given in the EIA report is in implementable form

and substantially covers the necessary mitigation measures. 10. Was Public Hearing if applicable conducted as per EIA

Notification of MoEF? • The project has received Environmental Clearance

(EC); • EC is granted once the EIA/EMP satisfies the measures

to be taken as per public demand.


• Suggestions received during the project stage have been considered. Provision for service road and underpasses are the common demands of the road side villages and settlement areas and the incorporation of the same has been done.


As part of the project, detailed EMP is prepared with a budget of Rs. 16.6 million for minimizing anticipated adverse impacts. During the site visit it has been confirmed that maximum expenditure has been made under the same.



Environmental monitoring for the DG set-stack emission, Ambient Air Quality, Ground water quality, Noise Quality, Waste water and Soil Quality is carried out by M/s Anacon Laboratories Pvt. Ltd under the project. The levels are reported within the permissible limits.


•The periodic lenders engineer (LE) report received from the lead bank reporting the Information of safe guard’s implementation status.

3. For category A subprojects, were safeguards-related documents such as EIA, RP and IPP, or audit reports


made publicly available, in addition to posting on ADB’s website?


• Monthly accident report is being sent to NHAI showing also

the causes of accidents;

• The concessionaire has their own organization Emergency Response System including three shift patrolling team and medical aid post & ambulance team.

• Necessary training is given to site persons to prevent

recurrence.

• As per LE report all quality and safety aspects are being taken care.

• Safety & traffic management systems have been

implemented and running as per the Safety & Traffic Management plan of the Project.

• As per LE report Utmost care is being taken for Safety of

the Road users as well as work site. 5. What key safeguard issues or complaints from affected

people were identified? What were the recommendations for improvement?

• The project is in operation since Feb.2012 and no major issues or complaints been received in the project;



7. Is the subproject compliant with applicable national/local

environmental requirements? • The sub-project comply with the applicable government

requirements as confirmed from safeguard DDR; • During audit the same were rechecked and confirmed;





• This segment of NH section has no major significant environmental impact.


• Public consultation was carried out under the project ; confirmed as per safeguard DDR;




• The project is now in operation stage and most of the EMP measures are completed


Yes agency has been appointed for environmental monitoring during construction stage of the project i.e M/s Anacon Laboratories Pvt. Ltd


The monitoring results observed & reported within the permissible limits.


No complaints received. As informed by developer the project is completed and all the small issues/concerns are resolved locally.


• As part of the project, Independent Engineer has been appointed in the project and the Environmental Expert of the IE monitors the implementation of EMP and reports the same to PD, NHAI.

• From the concessionaire end, the Project Manager through Environment-Health and Safety officers take care of the implementation of the Environment, Safety and Labor related aspects.


• The report from lenders engineer is submitted every quarter including the Information on Environment, Safety approvals, implementation and measures.

15. Observations on the EMP monitoring mechanism • During site visit and discussion with the concessionaire the implementation of EMP and environmental monitoring system were found adequate.


No new Issue


Not Applicable


• The widening and up gradation of this NH section has no major significant environmental impact

• The sub-project has the required national and local level environmental clearance as well as permits and approvals for project implementation

• The institutional arrangement available for the implementation of EMP appears to be adequate and number of staff available for implementing and monitoring the EMP implementation.

• Local people’s view have been given due consideration in the selection of pedestrian underpasses, road side drainages etc


• The Current Sub-project, therefore does not appears to involve any kind of reputational risk to ADB on environmental safeguards.

Names of audit team members: Gyanesh K shukla Environmental Safeguard Specialist Reviewed by:

Mr. Sanjeev Ghai, CGM & Head ESMU

Date of subproject audit: Audit done on site visit in project site between 21st to 22nd August 2012.

Date of Submission 14/01/2013 (Initial submission) 15/03/2013 (Revised Submission)



No. Company Name



Policies




Ensure Compliance

1

M/s Dhule Palasner Tollway Ltd.

4-laining of MP/Maharashtra Border-Dhule Section of NH-3 from Km. 168.500 to Km.265.000 in the State of Maharashtra under NHDP Phase-III on BOT (Toll) Basis.

• The project has no major significant environmental impact

• The project has the required national and local level environmental clearance as well as permits and approvals for project implementation.

• The institutional arrangement available for the implementation of EMP appears to be adequate.

• Local people’s view have been given due consideration in the selection of pedestrian underpasses, road side drainages etc

• Based on the site visits and due diligence findings, the sub-project has no major outstanding issues with respect to environmental safeguards

.


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Reporting Period: January 2012 - December 2012 A. SUB PROJECT BACKGROUND INFORMATION 1. Name of Sub-Project:

Construction of additional Two Lane for Halol- Godhra-Shamlaji Road to make it Four Lane divided carriageway Facility under Viability Gap Funding Scheme of Government of India on Built, Operate and Transfer Basis.


M/s. L&T-Halol-Shamlaji Tollway Private Limited


Allahabad Bank (Lead Bank) and other lenders are UCO Bank, OBC, Synd Bank, IIFCL, Indian Bank, HDFC Bank and Indus Ind Bank.


Mr. Sanjeev Ghai, CGM & Head’ ESMU , [email protected]

5. Location:

Project Road i.e. Halol-Godhra-Shamlaji section of SH-5 is located in eastern part of the state of Gujarat.



7. Sub-loan :

72.6 crore


The sub-project has achieved provisional COD on 30th March,2012 and toll collection started from 4th April from all the four toll plazas in this road project.

9. What ADB policies on safeguards cover this subproject?1 Safeguard Policy Statement (2009)




Yes, Environment and Social Due Diligence (ESDD) was completed by IIFCL in August 2011 and this project was partially approved by ADB in the month of December,2011. As part of the preparation of the ESDDR, the sub-project was visited by the Environmental and Social safeguard specialists of IIFCL during 23rd -24th of May,2011;

• During the ESDD, the key Environmental documents and various regulatory clearances and permits were checked by IIFCL.

• After receipt of Project developer’s commitment regarding continued compliance with statutory environmental regulations by the facility owner and the civil works contractor,The Final ESDDR was submitted in September, 2012.




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preparation of ESDDR. Further, during annual monitoring, site visit was undertaken by Ms. Ruchi Malik (Environment Specialist) and Ms Rumita Choudhary (Social safeguard Specialist) during 5th to 6th September, 2012.

• During Construction phase, LE visited site on quarterly basis to monitor physical progress and record critical issues, if any.

• LE report also mentioned about the Environmental Management Plan and work site safety and traffic management system.

• Activity wise Environmental compliance status of project has been reported by LIE under Annexure O of LIE report of June 2012 month.

• Under section 12 of LIE Report, Environment Management measures taken by Concessionaire and EPC Contractor has been provided in details covering the various areas like Health Issues, First Aid Facilities, Environment Monitoring in project, Dust Management and Sewerage & Waste Disposal aspects.

• Under Section13 of LIE Report, Details of Work Site Safety and Traffic Management in project have been provided covering particularly Traffic diversion plan during construction ,passage of Traffic along the existing carriageway and Safety Plan adopted in the project.

• As per Article VI (XXIV) of Common Loan Agreement, periodic submission of ESMR is required to be done by project developer.




identified in Memo to Board? • No significant environmental and social issues are identified in

the memo to board; • Also in Environmental Due Diligence, no significant

environmental issues identified. • The sub-project has the required statutory/regulatory

approvals confirmed during the safeguard due diligence. • There are no significant environmental issues which are likely

to be impacted due to sub-project implementation; • The sub-project has a project specific EMP.


• Yes memo adequately flags mandatory requirements for environmental and social compliances.

• Pre-construction regulation and approvals (e.g. Environmental Clearance, Forest clearance etc.) are met

• Construction stage approvals are also met during the construction stage (Consent and Authorisation);







of 8

2. Is IIFCL's ESSF included as mandatory requirement in

legal documents? As part of the legal document the E&S conditions is included under CLA as: “The Borrower shalt have obtained all necessary statutory and other Government Approvals as required under the Concession Agreement and fulfilled all the conditions stipulated there in…………….. and other clearances from the appropriate authorities, which shall be subject to the Lars verification on The Borrower shall have delivered to the Letts copies a Such Government Approvals.” Concession agreement also mentioned under article 8 -obligations of Concessionaire that concessionaire shall comply with all applicable laws and applicable permits in the performance of its obligations under this agreement. Environment and Safety related clauses of concession agreement are given in Appendix-IV. As part of the EPC contract between the concessionaire and the contractor the Safety, Environment and Labour related measures are described as per article 16.


• In the legal document it is mentioned that all the applicable permits to be obtained. This also includes Environmental clearance.

• Environmental Clearance requires compliance to EMP; • The EIA/EMP report contains an EMP in an

implementable form • An EMP has been proposed for construction stage.

During the site visit, it has been observed that EMP budget has been spent on Environmental Management measures which involve Continuous environmental monitoring, air pollution control measures, structures enhancement, plantation and landscaping etc.

• A cost provision of INR 363.25 Lacs has been proposed for Environment Management and monitoring plan.


• The EMP requirements are reflected in EIA; • These requirements are linked as per the legal requirements

of environmental clearance; • The requirement of environmental clearance is reflected in

these agreements.






• The EMP Compliance shows that concessionaire has implemented most of the construction stage EMP measures including dust suppression measures, sanitation facilities, erosion control measures, work safety and monitoring of environmental parameters etc.During site visit in operation phase ,it was observed that project developer has taken following specific

of 8

environment management related measures as follows:

• Median plantation are in place • Drains are regularly cleaned; • Rain Water Harvesting Pits have been provided and

maintained • One of the camp site location at Sehra was visited

regarding observation of rehabilitation measures taken by developer and it was found that Most of the activities were closed and labours were seen clearing the debris material from plant site.

• Developer has submitted details regarding surrendering of Quarry sites to Mining Dept. and also informed Pollution control Boards regarding closing of construction plant sites at the onset of operation phase.

• Road and Traffic safety related provisions and signages are provided throughout the project road.

8. Does the subproject comply with the applicable

government requirements (e.g., environmental clearance was issued, applicable permits and licenses issued, etc.)?


• During audit, the same were rechecked and confirmed; 9. Are all significant environmental issues covered and well

flagged in the EMP? • As such there is no significant issue in the project; and, • The EMP as given in the EIA report is in implementable form

and substantially covers the necessary mitigation measures. 10. Was Public Hearing if applicable conducted as per EIA

Notification of MoEF? • Public hearing were carried out on 06.02.2008 at

Modasa, Dist. Sabarkantha and on 04.03.2008 at Godhara, Dist. Panchmahal for the respective portion of the project.


• Suggestions received during the project stage have been considered. Provision for service road and school underpasses (Dallol village) were the common demands of the road side villages and settlement areas which have been included in project scope for road construction and provided during implementation stage.


As part of the project, detailed EMP is prepared with a budget provision of INR 363.25 Lacs for minimizing anticipated adverse impacts. During the site visit, it has been observed that environmental management measures have been taken up at project site.



Environmental monitoring for air, water and noise quality at work sites has been carried out by M/s Metro Enviro-chem Associates under the project. The levels are reported within the permissible limits.


During Construction phase, LIE reports were regularly sent to IIFCL by Lead Bank which also included EMP compliance status.



4. Were there major accidents or incidents during project implementation? What measures were introduced to

• The concessionaire has HSE Plan. • In case of an accident due to project activities, the

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prevent recurrence? concessionaire has Developed detailed emergency response plan

• The emergency plan provides details of potential risks, response activities, resources and responsibilities.

• Road Safety and Traffic Management Plan has been prepared for the project and according to this plan, traffic safety is being implemented in the project as and when required.

• To prevent recurrence of accidents,Adequate number of vehicular, pedestrian, school and cattle underpasses has been provided at strategic locations incorporating the views of local people.

• Proper traffic diversions and appropriate signage are being provided at the site to prevent any disruption to the highway traffic. Manpower is also deployed at diversion location to ensure safety to prevent any traffic congestion.

• As per LIE Report for May 2012 month, its reported that GSRDC has appointed experienced and qualified firm (The Safety Consultant) for carrying out safety audit of the Project Highway in accordance with the safety Requirement and shall take all other actions necessary for securing compliance with Safety Requirements.


• The project is in operation since April, 2012(provisional COD) and no major issues or complaints have been received in the project as confirmed by project developer vide mail;


During DDR and audit site visit, it has been observed that the sub-project has no major outstanding issues with respect to environmental safeguards.

7. Is the subproject compliant with applicable national/local

environmental requirements? • The sub-project comply with the applicable government

requirements as confirmed from safeguard DDR; • During audit the same were rechecked and confirmed;

8. Is the subproject compliant with ADB environmental assessment requirements (SPS 2009)?

Yes, the subproject is responsive to ADB’s environmental safeguard requirements. It is observed that:



• This segment of SH section has no major significant environmental issues.


• Public consultation was carried out under the project during pre-construction and implementation stage as well. Details for the same have been shared in the ESDDR submitted for this project as per para 21, Table no 7 regarding details of facilities provided by Concessionaire out of public demand;

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• The project is now in operation stage and most of the EMP measures are completed


Yes agency has been appointed for environmental monitoring during construction stage of the project i.e M/s Metro Enviro-chem Associates.


The monitoring results are reported to be within the permissible limits at most of the locations.


The project is completed and all the issues are resolved.


• From the concessionaire end, the Chief Project Manager through his Environmental Officer and construction project managers of the contractor take care of the implementation of the Environment, Safety and labor related aspects. The monitoring of environmental aspects implemented by the contractor & monitored by the PMC team of concessionaire through its Environmental Specialist who visits the site to monitor the compliance of EMP implementation. (DDR)


• The report from lenders engineer submitted including the Information on Environment, Management Plan implementation, Health Issues & Work site safety and traffic management etc.

15. Observations on the EMP monitoring mechanism • During site visit and discussion with the concessionaire, the measures taken for implementation of EMP were found adequate.


No new Issue


Not Applicable


• The widening and up gradation of this SH section has

no major significant environmental impact. • The sub project may also have a positive GHG

emission reduction due to less fuel consumption for the same traffic density.

• The sub-project has the required national and local level

environmental clearances as well as permits and approvals for project implementation.

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• Concessionaire has confirmed that continued

compliance has been carried out with statutory environmental regulations by the facility owner and the civil works contractor;

• The project alignment does not pass through any of the

notified environmental sensitive areas. • Based on the site visits and due diligence findings, it can

be deduced that the sub-project has no significant environmental safeguard issue.

Names of audit team members: Ms. Ruchi Malik (Environment Specialist),IIFCL and Mr. Gyanesh Kumar Shukla, Environment Development Consultant, IIFCL

Reviewed by:

Mr. Sanjeev Ghai, Chief General Manager, IIFCL

Date of subproject audit: This annual audit is based upon site visit observations between 5th to 6th September 2012 , information obtained & subsequent discussion with the project developer and safeguards compliance status related information as reported in LIE reports for intermittent period between site visits.

Date of Submission: April 18, 2013

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No. Company Name



Policies




Ensure Compliance

1

M/s. L&T-Halol-Shamlaji Tollway Private Limited

Construction of additional Two Lane for Halol- Godhra-Shamlaji Road to make it Four Lane divided carriageway Facility under Viability Gap Funding Scheme of Government of India on Built, Operate and Transfer Basis.

• The widening and up gradation of this SH section has no major significant environmental impact.

• The sub-project has the required national and local level environmental clearances as well as permits and approvals for project implementation

• Concessionaire has confirmed that continued compliance has been carried out with statutory environmental regulations by the facility owner and the civil works contractor;


• Based on the site visits and due diligence findings, it can be deduced that the sub-project has no significant environmental safeguard issue.







Four Laning of Pathankot-Amritsar section of NH-15 under NHDP Phase- III on DBFOT Basis


M/s. IRB Pathankot Amritsar Toll Road Pvt. Limited


IDFC is lead bank and other lenders are ICICI, IIFCL, Canara Bank, BoB & Union Bank of India.



5. Location:

The project road section is a part of National Highway No. 15 (NH-15) and is located in the North-Western part of Punjab



7. Sub-loan(US$):

18223643.20


70.08 % Project Progress (LE Report Nov.12)


ADB Safeguard Policy Statement 2009

10.Safeguard category:



Yes, Environmental and Social Due Diligence (ESDD) was finalized by IIFCL in March 2012.

12.Number of IIFCL safeguard site visits • sub-project was visited by the Environmental and Social safeguard specialists of IIFCL during 11th -12th of August 2011 for field verification of Environmental safeguards and initial ESDDR was submitted in Nov.2011

• In addition to the safeguards site visits, The Lenders Engineers (LE) undertake Quarterly site visit to sub-project for monitoring the following aspects of the project.

- Physical Progress; - Financial progress;




- Report on Implementation of Health and Safety and Compliance Related to Environmental Conditions

- Issues related to Land acquisition , Environmental management, approvals and clearances




in the memo to board; • In Environmental Due Diligence, no significant

environmental issues identified; • The sub-project has necessary national and local level

environmental clearance as well as permits and approvals for project implementation


• The sub-project has a project specific EMP.




• Construction stage approvals/permits are also met • The sub-project has all the required statutory/regulatory

approvals confirmed during the safeguard due diligence and subsequent review.



As part of DDR preparation & review following documents were reviewed: • Environmental Impact Assessment report including


Overall the EIA/EMP reports are found substantive in their content and adequately cover all the aspects of mitigation measures. As per EIA/EMP report, a cost provision of INR 17.13 million has been proposed for Environment Management and monitoring plan for this project. Further, other clearances and permits were also reviewed. Overall the environmental safeguard measures are met in the project.

2. Is IIFCL’s ESSF included as mandatory As part of the legal document the conditions is included under CLA Article (VI) Conditions applicable during currency

requirement in legal documents? of this agreement 6.1 General Covenants (A) v. Compliances with Statutes ,contracts and country requirements etc (i) &(ii) “The borrower shall comply with the applicable law, clearances and other approvals, licenses, permissions obtained……………withy applicable country requirements” As per article 5 under obligations of Concessionaire in concession agreement, the concessionaire shall comply with all applicable laws and applicable permits (including renewals as required) in the performance of its obligations under this agreement. Safety requirements are given under Article 18 in which it is specified that the Concessionaire shall comply with the provisions of applicable laws and applicable permits and conform to good industry practices for securing the safety of the users. Compliance with applicable permits has also been specified in Schedule –E of Concession agreement.


In the legal document it is mentioned that all the labour/industrial laws/other applicable laws, rules, regulations, orders of various authorities shall complied. This also includes Environmental clearance. • Environmental Clearance requires compliance to EMP; • The EIA report of the project contains an EMP in an

implementable form










• During DDR site visit and discussion with the project developer, the implementation of EMP and environmental monitoring system were found adequate.

• Periodical environmental management and monitoring during the project implementation is being carried out by the concessionaire.

8. Does the subproject comply with the applicable • The sub-project complies with the applicable government


requirements as confirmed from Environment safeguard DDR.

• During review Concessionaire has confirmed the through written communication that all pending statutory environmental clearances /approvals /consents if any, are obtained (or renewed as the case may be).


• As such there is no significant issue identified in the project and

• The EMP is in implementable form and covers the necessary mitigation measures.


The consultations were held based on a structured questionnaire. At meetings these questionnaires were distributed and people were informed about the subsequent meeting when their response could be recorded.Consultation meetings were conducted in the impacted villagesi.e. Sama, Parmanand, Bariar, Japuwal, Babri, Said Mubarak, Jaintipur & Pakharpur.




• Rs. 17.13 million has been earmarked for EMP implementation budget

• During DDR site visit and discussion with the project developer, the implementation of EMP and environmental monitoring system were found adequate.



• The job of environmental monitoring for Pathankot Amritsar road project has been outsourced to an Environmental Laboratory namely M/s. Ecotech Services Inc.Faridabad. As informed by concessionaire, Periodic Environmental monitoring is being carried out on regular basis for entire stretch.

• Environmental Monitoring Report has been submitted by Concessionaire vide mail.

• Most of the monitoring results are within the permissible limits.


• The concessionaire submits regular safeguard monitoring reports to NHAI for onward submission to MoEF regarding compliance of environmental clearance conditions.

• The periodic lenders engineer report received from lead bank is also reporting on Implementation of Health and Safety and Compliance Related to Environmental Conditions and Issues related to Land acquisition, Environmental management, approvals and clearances.




• As per LE report, Concessionaire is complying with road traffic safety issues.

• Concessionaire has confirmed through written communication that safety provisions such as bus bays, service roads intersection improvements including all adequate facilities provided as stipulated in concession agreement which are confirming to IRC guidelines.

5. What key safeguard issues or complaints from

affected people were identified? What were the recommendations for improvement?

Current Project Progress achieved 5pprox.. to 70 % and as far no major issues or complaints received in the project.


During DDR and review the sub-project has no major outstanding issues with respect to environmental safeguards.



• During review the same were rechecked and confirmed 8. Is the subproject compliant with ADB

environmental assessment requirements? Yes the subproject is responsive to ADB’s environmental safeguard requirements. It is observed that:







•The sub-project complies with all the national regulatory requirements; confirmed from safeguard DDR and review and, •Most of the EMP measures are being implemented.




Most of the monitoring results are observed within permissible limits.



13. Deployment of staff to monitor implementation of environmental mitigation measures from the

The overall implementation responsibility of the EMP lies with the Project Implementation Unit (PIU); Project Director

contractor, concessionaire and NHAI. at PIU is supported by the Environment Officer of NHAI. NHAI has appointed Central Road Research Institute (CRRI) as safety consultant for carrying out safety audit of the project highway in accordance with the safety requirement and shall take all other actions necessary for securing compliance with safety requirements. During execution of works, the concessionaire & EPC contractors have taken reasonable steps to protect the environment on and off the site and avoid damage or nuisance to persons or to property of the public or other resulting from pollution, noise or other causes arising as a consequence of their method of operation. On the concessionaire end, Safety cum Environmental Engineer has been appointed during construction phase of this road project who will monitor and supervise the construction project managers of the contractor to take care of the implementation of the Environment, Safety and labor related aspects. Chief Project manager of EPC Contractor is responsible for implementing the EMP during all phases of construction and ensures that all subcontractors are aware of and comply with the EMP.

14. Is the Lead Bank/Subproject Developer

submitting reports to IIFCL and other lenders on a regular basis?

• The Environmental monitoring reports as well compliance to environmental clearance conditions were periodically prepared and adequately documented by the concessionaire.

• The report from lenders engineer is also received periodically reporting the Information in regard to safe guard’s implementation status.


mechanism • Periodical environmental management and

monitoring during the project implementation is being carried out by the concessionaire.

• The EMP monitoring during construction stage was found adequate


No new Issue


Not Applicable


• The sub-project has necessary national and local level environmental clearance as well as permits and approvals for project implementation.

• The sub-project does not affect any eco-sensitive zones as declared by MoEF. Also the project does not pass through any national park or wild life sanctuary area.

• No historical or archaeologically important monuments are affected due to this road project;

• Concessionaire has confirmed the compliance with the

agreed environmental measures/monitoring plans including public consultations during execution;

• Based on the review findings, it can be deduced that the sub-project has no significant environmental safeguard issues.

• The Current Sub-project, therefore appears not to involve significant reputational risks to ADB funding on environmental safeguards.


the concessionaire/developer. Date of Submission 16-01-2013 (Initial Submission)

15-03-2013 (Revised Submission)



No. Company Name


Compliance Status vis-à-vis ADB

Safeguard Policies


by ADB

Action Required by


1

M/s. IRB Pathankot Amritsar Toll Road Pvt. Limited

Four Laning of Pathankot-Amritsar section of NH-15 under NHDP Phase- III on DBFOT Basis



• Periodic monitoring of EMP implementation and environmental parameters is taken up during the construction stage;


The sub-project has been prepared by NHAI as per its own funding requirement and not in anticipation to ADB operation. The Sub-project does not appear to involve reputational risk to Asian Development Bank funding on environmental safeguards and recommended for funding under the proposed project.



Reporting Period: January 2012-December 2012

A. SUB PROJECT BACKGROUND INFORMATION 1. Name of Sub-Project:

Two-lane carriageway to Four-lane dual carriageway of Cuddapah Kurnool section of existing NH-18 in the state of Andhra Pradesh on BOT Basis


M/s. Rayalseema Expressway Private Limited


IDFC Bank is the lead bank. The other co-lenders are Bank of Baroda and IIFCL.


Sh. Sanjeev Ghai, CGM ,ESMU, [email protected]

5. Location:

Located in the state of Andhra Pradesh. The project involved widening and strengthening of existing two lanes to four lanes configuration.


Roads and Highways/ Widening and Strengthening

7. Subloan (US$ mn):



The project is under construction. The likely date of partial Commercial Operation Date (COD) is 13th May 2013.





Yes, Environment and Social Due Diligence (ESDD) was completed by IIFCL in December, 2011.

• During the ESDD, the key Environmental documents and various regulatory clearances and permits were checked by IIFCL through its consultants.

• Site visit was undertaken in 19th-20th January, 2012 and ESDD was finalized in February, 2012.

• The site visit was undertaken by Ms. Ruchi Malik (Environment Specialist) and Ms. Rumita Chowdhury (Social safeguard Consultant), appointed by IIFCL.

• Following documents related with latest Environmental Safeguards status were received from project developer which were checked by IIFCL during preparation of this Data-sheet which mainly comprised following documents: (i) Latest EMP Compliance Matrix(for the period of

January, 12 to June,12) (ii) Latest six monthly accident data (iii) Environmental Monitoring Reports for all the four

packages(road sections) in this project, October 12 (iv) Renewed copies of permits (v) Environmental Statement for financial year ending on

31st March,2012 (vi) Other information provided regarding special


12. Number of IIFCL safeguard site visits • IIFCL has undertaken one safeguard site visit during

Due-diligence process in the month of January, 2012.

• LE visits project site on quarterly basis to monitor physical progress and record critical issues, if any.

1 Subprojects approved under LN 2404-IND (approved on 20 Dec. 2007), LN 2509-IND (approved on 24 Feb. 2009), LN 2586-IND (approved

on 27 Nov. 2009) are required to comply with the Environment Policy 2002, Policy on Involuntary Resettlement (1995), and Policy on Indigenous Peoples (1998). Subprojects approved under LN 2717-IND (approved on 7 Dec. 2010) are required to comply with ADB Safeguard Policy Statement 2009.


• LE report also mentions about the compliance of the project w.r.t Environment, Health & Safety aspects like Road Traffic Safety, Waste disposal, Health & Hygiene status at site, Contractors response to EMP implementation and various clearances/permits applicable.


14. Products Placed for Audit in the Current Year Environment and Social Safeguard Implementation monitoring.


identified in Memo to Board? • No significant environmental and social issues are


environmental and social issues identified. • The sub-project has all the required statutory/regulatory

approvals confirmed during the safeguard due diligence. • There is no significant environmental issues which are

likely to be impacted due to sub-project implementation; • The sub-project has a project specific EMP

2. Does the Memo adequately flag mandatory requirements

for environmental and social compliance? Are all compliance conditions fully met prior sending Memo to the Board?


• Pre-construction regulation and approvals (e.g. Environmental Clearance, etc.) are met;


• The concessionaire has to develop an implementable environmental management plan with proper allocation of manpower and financial resources to execute the mitigation measures or corrective actions as identified/recommended in the environment impact assessment report for the project;

• The sub-project has all the required statutory/regulatory approvals confirmed during the safeguard due diligence and also confirmed during the annual audit.




Management Plan;

• Overall the environmental assessment and EMP are found substantive in their content and adequately covers all the aspects of mitigation measures and management plan;

• Cost provision of Rs 8.92 Crores are earmarked for EMP budget.



As per article V for conditions precedent of Common Loan Agreement for Rayalseema Expressway Project, following E & S conditions are included under conditions to first disbursement as: “ The borrower shall have obtained all the clearances(statutory and non-statutory) for the project to the satisfaction of the lender, obtained EHSS approvals/clearances from the respective regulatory body as applicable and demonstrate compliance to the conditions stipulated therein, developed an implementable environmental management plan …... as identified/recommended in the environment impact assessment report for the project and developed and submitted health and safety policy to the lender”. Under the conditions of Article VI of CLA for conditions applicable during currency of this agreement, as per condition no (xi) for compliance with Environmental Laws, it is mention as:

“ The project shall, at all times during the currency of the assistance, comply with the environmental , health, safety and social (EHSS) requirements, all the Environmental Laws, and Clearances issued thereunder, and maintenance of documents to be able to demonstrate compliance with the same to the lender”.


• Legal document mentions that all applicable laws of land related to Environmental safeguard are to be followed and also mention the requirement of developing implementable EMP by borrower with proper allocation of manpower and financial resources to execute the mitigation measures or corrective actions as identified/recommended in the environment impact assessment report for the project;


• The EIA/EMP report contains an EMP in an

implementable form


• The EMP requirements are reflected in EIA and Common Loan Agreement signed for this project;

• These requirements are linked as per the legal requirements of environmental clearance;

• The requirement of environmental clearance is also reflected in these agreements.

5. Were the applicable environmental and social safeguard

requirements and their implementation discussed with the concessionaire?





As per latest EMP compliance matrix submitted by Concessionaire vide mail, Most of the EMP measures are implemented and some of them are being implemented;

• Under EMP Budget, Rs 8.92 Crores earmarked for EMP implementation in EC letter.

• Water sprinkling is done for dust suppression as the project is in construction phase presently;

• Construction plants are provided with pollution control equipment.

• Workers are being provided with the required safety gears to be worn during execution of work.

• Periodic environmental monitoring is continuously carried out.

• Necessary barricading and safety precautions for deep excavations are also being ensured. Work safety signages have been provided throughout the project highway.

• The Labour camps are provided with adequate drinking water, canteen and sanitation facilities

• Emergency patrolling vehicle has been provided and tie up has been done with local hospital for emergency ambulance facility.

• As per LIE report for August 2012, at some locations, median plantation has been started. Horticulture and landscaping will be taken at later stage.



• During audit, the same were rechecked and confirmed; • As per LIE report for August 2012, Forest Clearance for

8.03 Acres Reserve Forest land (Ch. 322.00 km to 322.750km ) is pending as on date for which application has been already processed with MoEF and as confirmed by Concessionaire, Stage-I forest clearance for this land is expected to receive shortly.

• As confirmed by concessionaire vide mail, Environmental Compliance reports are regularly submitted to competent authorities.

9. Are all significant environmental issues covered and well

flagged in the EMP? • As such, there is no significant issue in the project; and, • The EMP as given in the EIA report is in implementable



• Public Hearing was conducted for the project.


• Yes, outcomes of public hearing have been reflected in EMP as EIA-EMP report is finalized only after public consultation is conducted for the project.


• The EMP budget (Rs 8.92 Crores) for the project has been considered in the EPC cost during the financial appraisal;



• Environmental monitoring is being conducted in the project; confirmed during safeguard DDR preparation;

• During the safeguard monitoring visit also, it is confirmed that Environmental Monitoring is being taken up during the construction stage.

• Latest Environmental Monitoring Report for the month of October, 2012 has been submitted by Concessionaire vide mail.


2. Is the concessionaire/Lead Bank submitting safeguard

monitoring reports to IIFCL on a regular basis? The concessionaire submits regular safeguard monitoring reports to IE/NHAI for onward submission to MoEF regarding compliance of environmental clearance conditions. The periodic lenders engineer (LE) report received from the lead bank, reports the Information regarding safe guard’s implementation status.


Not Applicable, the sub-project is considered as Category B.


• Road and Traffic Safety Plan has been developed for this project.

• Monthly accident/incident reporting system is developed which gives details of chainage wise accident location, nature of accident, no. of affected persons and any emergency help provided. For prevention of recurrence of accidents, following measures are taken by project developer:

• As reported by concessionaire, Regular Traffic awareness programs are being conducted along the highway.

• Necessary training is given to site persons to prevent recurrence.

• Employees are provided with personal protective equipment.

• As per LIE report for August 2012, Concessionaire is complying with road traffic safety issues and road safety & traffic management is provided as per SP-55 & IRC-67.

• Emergency patrolling vehicle has been provided and tie up has been done with local hospital for emergency ambulance facility.

• Proper traffic diversions and appropriate signage are being provided at the site to prevent any disruption to the highway traffic. Manpower is also deployed at diversion locations to ensure safety to prevent any traffic congestion.


No major complaints and grievances w.r.t. environmental safeguard issues are received from affected people as confirmed by Concessionaire vide mail.


In general, there is no such requirement of CAP per se, as the project has mostly implemented all major EMP measures and has set up an adequate mechanism for EMP monitoring, and environmental monitoring.

• Continuous environmental monitoring during operation stage needs to be undertaken;

• EMP monitoring required to be extended in the operation stage.



• During safeguard monitoring visit, the same were rechecked and confirmed;

8. Is the subproject compliant with ADB environmental

assessment requirements (Environment Policy 2002)? Yes, the subproject responses to ADB environmental safeguard requirements. It is observed that:



• Occurrence of rare and endangered species (both flora and fauna) has not been reported within the project stretch;

• No monuments or archaeological important site is getting affected by the project;

• The EMP prepared for this project is in implementable form and substantially covers the necessary mitigation measures.

• Public consultation was carried out during preparation of EIA; confirmed as per safeguard DDR;


• SPV has mostly implemented all the EMP measures covered in contracts; plantation work is undertaken at construction camp sites and started the plantation in the median as confirmed vide LIE report for August 2012;

• Top soil has been used in the median for median plantation;

• Rain Water Harvesting structures are provided along the road.

• As per EMP compliance matrix submitted by Concessionaire, for prevention of oil and grease spillage at camp sites, separate garages have been provided for vehicle maintenance.

• All the traffic sign boards are installed as per IRC guidelines for smooth traffic management and Concessionaire is complying with road safety guidelines in construction zones.



Yes, agency for environmental monitoring has been appointed.


The monitoring results for most of the parameters are within the permissible limits.


As informed by Concessionaire during site visit, Enhancements of community assets like development of playground facilities at some schools falling on the stretch, donation for temples and construction of platform structure during temple relocation at Ch. 197 etc. has been provided. Community facilities have also been provided out of local public demand throughout the road stretch like provision of approach roads, temporary road diversion at Penna bridge location,

provision of culverts at request of farmers, construction of diversion canal, compound walls for Allagadda rural police station and MDO Office etc.

Further, Following items are subject to approval of Independent Engineer and NHAI as informed by concessionaire vide mail:

• Service roads for Gudipadu village on public demand • Foot over bridge for Nannur Village in front of Govt.

School on public demand • Foot Bridge for canal crossing and additional service on

public demand at Chennur Village

13. Deployment of staff to monitor implementation of environmental mitigation measures from the contractor, concessionaire and Concessioning Authority?

Project Director (NHAI) is overall responsible for monitoring EMP implementation. The concessionaire through its Environmental Engineer monitors the implementation of EMP carried out by the EPC contractor during construction stage. The Concessionaire as well as EPC contractor has developed Health, Safety and Environment (HSE) Plan for managing the HSE issues at construction sites for Rayalseema Expressway project. To achieve the objectives, EPC Contractor has also deployed HSE staff.


• Lead Bank sends LIE reports to IIFCL on regular basis. LE report for this project mentions about the compliance of the project w.r.t Environment, Health & Safety aspects like Road Traffic Safety, Waste disposal, Health & Hygiene status at site, Contractors response to EMP implementation and various clearances/permits applicable.

15. Observations on the EMP monitoring mechanism • The EMP monitoring as done during the construction stage is found adequate as per latest EMP Compliance Matrix as sent by concessionaire.


No new Issue


Not Applicable


• The sub-project sanction was given by IIFCL after ESSF adoption;

• The sub-project has no major significant environment issues;

• The sub-project has received all the necessary government approvals (i.e. clearances, permits etc.) except the Forest clearance of 8.03 acres RF land which is pending from km 322.000 to km 322.750 for which application has been filed with MoEF and as confirmed by Concessionaire, Stage-I forest clearance for this land is expected to receive shortly;

• Periodic monitoring of EMP implementation and physical environmental parameters taken up;


• The project also do not have much specific public grievances w.r.t environmental safeguards;

• Accident /incident register is prepared • Overall the sub-project is in compliance with the

applicable government and ADB safeguard requirements;

Names of audit team members: Ruchi Malik, Environment Specialist, ESMU, IIFCL

Reviewed by:

Sanjeev Ghai, Head ESMU, IIFCL

Date of subproject audit: Audit done based on information obtained vide mail from concessionaire.

Date of Submission: January 14,2013(Initial Submission) March 15,2013 (Final Submission)



No. Company Name Subproject Name Environmental Safeguard Due Diligence


Policies

Social Safeguard Compliance

Monitoring and Review by ADB

Action Required by

IIFCL to Ensure

Compliance 1

Rayalseema Expressway Pvt. Limited

Two-lane carriageway to Four-lane dual carriageway of Cuddapah Kurnool section of existing NH-18 in the state of Andhra Pradesh on BOT Basis

• All applicable statutory clearances and approvals are obtained except forest clearance for small patch of RF land for which Stage-I forest clearance is expected to receive shortly as confirmed by concessionaire vide mail;


• EMP Measures are properly implemented

• No specific grievances have been received;

• Environmental Monitoring is being carried out;


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Reporting Period: January 2012-December 2012

A. SUB PROJECT BACKGROUND INFORMATION 1. Name of Sub-Project:

6-Laning of Chilakaluripet to Nellore section of National Highway NH-5 from Km 1182+802 to Km. 1366+547 (Including 10.125 km long New Ongole bypass) in the State of Andhra Pradesh under NHDP phase V as BOT (Toll) project on DBFOT pattern.


M/s. Simhapuri Expressway Limited


State Bank of India is the lead bank. The other co-lenders are State Bank of Hyderabad, State Bank of Patiala, State Bank of Bikaner and Jaipur, State Bank of Mysore, IIFCL, Infrastructure Development Finance Co Limited, Allahabad Bank, Tamil Nadu Mercantile Bank ,ICICI Bank.


Sh. Sanjeev Ghai (Head-ESMU), [email protected]

5. Location:

Located in the state of Andhra Pradesh. The project involved widening of existing road from 4- laning to 6- laning.


Roads and Highways/ Widening and Strengthening

7. Subloan (US$ mn):

Till date disbursed amount is US$ 23410274.96.


The project is under construction. The scheduled Commercial Operation Date (COD) is 20th May 2014.





Yes, Environment and Social Due Diligence (ESDD) was completed by IIFCL in June 2012.

• During the ESDD, the key Environmental documents and various regulatory clearances and permits were checked by IIFCL through its consultants.

• Site visit was undertaken in 18th-20th June, 2012 and ESDD was finalized in June 2012.

• The site visit was undertaken by Ms. Ruchi Malik (Environment Specialist) and Ms. Rumita Chowdhury (Social safeguard Consultant), appointed by IIFCL.

• Documents related with latest Environmental Safeguards status were received from project developer which were checked by IIFCL during preparation of this Data-sheet which mainly comprised following documents: (i) Latest Six monthly compliance report for EC Letter

conditions submitted to MoEF (ii) Latest six monthly accident data(May to

October,2012) (iii) Latest Status of Environment, Health, Safety and

Traffic Management measures for the project (iv) Other information provided regarding special



1 Subprojects approved under LN 2404-IND (approved on 20 Dec. 2007), LN 2509-IND (approved on 24 Feb. 2009), LN 2586-IND (approved

on 27 Nov. 2009) are required to comply with the Environment Policy 2002, Policy on Involuntary Resettlement (1995), and Policy on Indigenous Peoples (1998). Subprojects approved under LN 2717-IND (approved on 7 Dec. 2010) are required to comply with ADB Safeguard Policy Statement 2009.


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preparation of ESDDR in June 2012. Further, during Safeguard monitoring visit by ADB in November 2012, site visit was undertaken by Ms. Ruchi Malik (Environment Specialist) and Ms. Rumita Chowdhury (Social safeguard Specialist) along with ADB Mission during 7th -9th November, 2012.

• LE visits project site on quarterly basis to monitor

physical progress and record critical issues, if any.

• LE report also mentions about the compliance of the project w.r.t EHS Manual prepared for the project, Environment, Health & Safety aspects and various clearances/permits applicable.


14. Products Placed for Audit in the Current Year Environment and Social Safeguard Implementation monitoring.


identified in Memo to Board? • No significant environmental and social issues are


environmental and social issues identified. • The sub-project has all the required statutory/regulatory

approvals confirmed during the safeguard due diligence. • There is no significant environmental issues which are

likely to be impacted due to sub-project implementation; • The sub-project has a project specific EMP

2. Does the Memo adequately flag mandatory requirements

for environmental and social compliance? Are all compliance conditions fully met prior sending Memo to the Board?


• Pre-construction regulation and approvals (e.g. Environmental Clearance, etc.) are met;


• The sub-project has all the required statutory/regulatory approvals confirmed during the safeguard due diligence and also confirmed during the annual audit.




Management Plan;

• Overall the environmental assessment and EMP are found substantive in their content and adequately covers all the aspects of mitigation measures and management plan;

• Cost provision of Rs 14 Crores are earmarked for EMP budget.



As part of the Common Loan Agreement, under Section 9 for conditions precedent, the following E&S conditions are included as: “ The Borrower shall have obtained all necessary Clearances, including any approvals required from any Government Entity….. which are required in relation to the commencement of the project…..and such clearances, licenses, approvals and consents shall be in full force and effect. Under Environmental Obligations, The borrower shall have developed an implementable environmental management plan with proper allocation of manpower and financial resources to execute the mitigation

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measures or corrective actions as identified/recommended in the environment impact assessment report for the project” Under the conditions of Section 11.10 of CLA for conditions related to Environment related Covenants, as per condition no (11.10.1) for compliance with Environmental Laws, it is mentioned as: “The borrower shall comply and shall ensure that the construction contractor and the O&M Contractor complies at all times with EHSS requirements related to the project, ensure compliance with provisions of all applicable laws, and clearances issued thereunder , and maintenance of documents to be able to demonstrate compliance with the same, ensure compliance with all conditions stipulated in the state and central environmental clearances obtained by the borrower for the project…”.


• Legal document mentions that all applicable laws of land related to Environmental safeguard are to be followed and also mention the requirement of developing implementable EMP by borrower with proper allocation of manpower and financial resources to execute the mitigation measures or corrective actions as identified/recommended in the environment impact assessment report for the project;


• The EIA/EMP report contains an EMP in an

implementable form


• The EMP requirements are reflected in EIA and Common Loan Agreement signed for this project;

• These requirements are linked as per the legal requirements of environmental clearance;

• The requirement of environmental clearance is reflected in these agreements.

5. Were the applicable environmental and social safeguard

requirements and their implementation discussed with the concessionaire?





• As observed during site visit and EMP Compliance related documents received from Project proponent, its noted that Most of the EMP measures are implemented and some of them are being implemented;

• Under EMP Budget, Rs 14 Crores earmarked for EMP implementation

• Water sprinkling is done for dust suppression as the project is in construction phase presently;

• Construction plants are provided with pollution control equipment.

• Workers are being provided with the required safety gears to be worn during execution of work.

• Periodic environmental monitoring is continuously carried out.

• Necessary barricading and safety precautions for deep excavations are also being ensured. Work safety signages have been provided throughout the project highway.

• The Labour camps are provided with adequate drinking water, canteen and sanitation facilities

• Reclaimed Asphalt has been reused for making Dense Bituminous Macadam of the newly paved carriageway.

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• A new plant has been established to specially treat the milled bituminous product from the existing carriageway, reducing the amount of wastage which makes environment polluted if disposed off openly.



• During audit, the same were rechecked and confirmed; • Consent for operation of Camp sites are required to be

renewed for which Concessionaire has communicated that these are going to be obtained at the earliest from Concerned State Pollution Control Boards.

9. Are all significant environmental issues covered and well

flagged in the EMP? • As such, there is no significant issue in the project; and, • The EMP as given in the EIA report is in implementable



• Public Hearing was conducted for the project.


• Yes, outcomes of public hearing have been reflected in EMP as EIA-EMP report is finalized only after public consultation is conducted for the project.


• The EMP budget (Rs 14 Crores) for the project has been considered in the EPC cost during the financial appraisal;



• Environmental monitoring is being conducted in the project; confirmed during safeguard DDR preparation;

• During the safeguard monitoring visit also, it is confirmed that Environmental Monitoring is being taken up during the construction stage.


2. Is the concessionaire/Lead Bank submitting safeguard

monitoring reports to IIFCL on a regular basis? The concessionaire submits regular safeguard monitoring reports to MoEF for the environmental clearance conditions. The periodic lenders engineer (LE) report received from the lead bank reports the Information on safe guard’s implementation status.


Not Applicable, the sub-project is considered as Category B.


For prevention of recurrence of accidents, following measures are taken by project developer:

• The concessionaire has their own organization accident

reporting system. All accidents w.r.t. project site are reported in prescribed format.

• A dedicated control room has been designated to manage the accidents / incidents during the project implementation.

• Necessary training is given to site persons to prevent recurrence.

• Employees are provided with personal protective equipment.

• Service Roads have been designed in a manner which provides safer and improved services to the road users and due to which there is an increase in total length in service roads.

• A dedicated control room is established for round the clock monitoring of the Traffic and Road Safety.

• Round the clock services of Ambulances and Temporary Medical Aid Post at all three Toll Plazas are established and well functional. An Emergency Response Protocol in the form of Emergency Response Plan is in practice.

• Road safety Week had been held on the first week of the

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year and pamphlets were distributed to the drivers to provide awareness on safe driving practices and road signs. Free reflective materials were distributed to the drivers to reduce accidents attributable to low visibility of moving vehicles.

• Schools and Colleges have been given training programs to make them aware of traffic rules, signs and signals for safe plying on highway.

5. What key safeguard issues or complaints from affected

people were identified? What were the recommendations for improvement?

No major complaints and grievances w.r.t. environmental safeguard issues are received from affected people as confirmed by Concessionaire vide mail. Complaint register is maintained at all three toll plazas to address to the public grievances if any.


In general, there is no such requirement of CAP per se, as the project has mostly implemented all major EMP measures and has set up an adequate mechanism for EMP monitoring, and environmental monitoring.

• Continuous environmental monitoring during operation stage needs to be undertaken;

• EMP monitoring required to be extended in the operation stage.



• During safeguard monitoring visit, the same were rechecked and confirmed;

8. Is the subproject compliant with ADB environmental

assessment requirements (Environment Policy 2002)? Yes, the subproject responses to ADB environmental safeguard requirements. It is observed that:



• Occurrence of rare and endangered species (both flora and fauna) has not been reported within the project stretch;

• No monuments or archaeological important site is getting affected by the project;

• The EMP prepared for this project is in implementable form and substantially covers the necessary mitigation measures.

• Public consultation was carried out during preparation of EIA; confirmed as per safeguard DDR;


• SPV has mostly implemented all the EMP measures covered in contracts; plantation work is undertaken at construction camp sites and maintained in the median as seen during the audit site visit;

• Rain Water Harvesting structures are provided in every 500 m along the road. The oil and grease trap installed at each camp site in the workshop for vehicle maintenance.

• All the traffic sign boards are installed as per IRC guidelines for smooth traffic management and Concessionaire is complying with road safety guidelines in construction zones.



Yes, agency for environmental monitoring has been appointed.

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The monitoring results for most of the parameters are within the permissible limits.


As informed by concessionaire vide mail, Complaint register is being maintained at all three toll plazas. Protocol as stipulated in the concession agreement is being followed for redressal of the same.

At one location of Ch. 1260 KM, Pond named Punta at Nayadupalam will be filled in road widening which will be constructed again at nearby another place for villagers. It is mutually agreed with the villagers to shift the tank from the existing location and extend it beyond the proposed ROW. The work for the same is under progress.

On the demand of local people at Valluru- Ch. 1256 km, Vehicular Underpass will be provided in front of temple falling on the road which was not under earlier scope of work given by NHAI.

13. Deployment of staff to monitor implementation of

environmental mitigation measures from the contractor, concessionaire and Concessioning Authority?

Project Director (NHAI) is overall responsible for monitoring EMP implementation. The concessionaire through its Environmental Engineer monitors the implementation of EMP carried out by the EPC contractor during construction stage. To achieve the objectives, EPC Contractor has also deployed HSE staff.


• Lead Bank sends LIE reports to IIFCL on regular basis. • LE report for this project mentions about the compliance

of the project w.r.t Environment, Health & Safety aspects like Road Traffic Safety, Waste disposal, Health & Hygiene status at site, Worker’s Safety, Traffic Management, Contractors response to EMP implementation and various clearances/permits applicable.

15. Observations on the EMP monitoring mechanism • The EMP monitoring as done during the construction stage is found adequate as regular compliance report is being sent to MoEF;


No new Issue


Not Applicable


• The sub-project sanction was given by IIFCL after ESSF adoption;

• The sub-project has no major significant environment issues;

• The sub-project has received all the necessary government approvals (i.e. clearances, permits etc.);

• Periodic monitoring of EMP implementation and physical environmental parameters taken up;


• The project also do not have much specific public grievances w.r.t environmental safeguards;

• Accident /incident register is prepared • Overall the sub-project is in compliance with the

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applicable government and ADB safeguard requirements;

Names of audit team members: Ruchi Malik, Environment Specialist, ESMU, IIFCL

Reviewed by:

Sanjeev Ghai, CGM- ESMU, IIFCL

Date of subproject audit: Safeguard Compliance review done based on field visit during 7th -9th November,2012 and information received from Project developer vide mail.

Date of Submission: January 14, 2013 (Initial Submission) March 15, 2013 (Final Submission)

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No. Company Name Subproject Name Environmental Safeguard Due Diligence


Policies

Social Safeguard Compliance

Monitoring and Review by ADB

Action Required by

IIFCL to Ensure

Compliance 1

Simhapuri Expressway Limited

6-Laning of Chilakaluripet to Nellore section of National Highway NH-5 from Km 1182+802 to Km. 1366+547 (Including 10.125 km long New Ongole bypass) in the State of Andhra Pradesh under NHDP phase V as BOT (Toll) project on DBFOT pattern.

• All applicable statutory clearances and approvals are obtained;


• EMP Measures are properly implemented

• No specific grievances have been received;

• Environmental Monitoring is being carried out;







Four Laning of 15.350 Km. Quazigund to Banihal Section from Km 189.350 to Km. 204.700 including two tunnels (2 lane) of 0.690Kms. And 8.450Kms of NH-1A in the state of Jammu & Kashmir on DBFOT (Annuity) basis in the state of Jammu & Kashmir.


M/s Navayuga Quazigund Expressway Private Limited


State Bank of India as the Lead Bank and other Co-Lenders are Punjab National Bank, Central Bank of India, Bank of India, Andhra Bank, State Bank of Hyderabad, Oriental Bank of Commerce, Corporation Bank and India Infrastructure Finance Company Limited (IIFCL).



5. Location:

Ramban and Anantnag District Section of Jammu and Kashmir State



7. Sub-loan: US$



Physical Progress is 26.52%.


Safeguard Policy Statement (2009).




Yes, Environmental and Social Due Diligence (ESDD) was completed by IIFCL in March 2012.

12.Number of IIFCL safeguard site visits • Due Diligence site visit was undertaken by IIFCL’s Environmental and Social Safeguard specialists during 12th -14th of March, 2012 to review the implementation of the project environmental safeguards.

In addition to the safeguards site visits, The Lenders Engineers (LE) undertake site visits to sub-project for




monitoring the following aspects of the project. - Physical Progress; - Financial progress; - Status of Environmental permits & clearances,

Safety aspects - Status of EMP measures - Land acquisition status of the project, - Overall review and assessment of the project






environmental clearance as well as permits and approvals for project implementation confirmed during the safeguard due diligence as well as during audit review;


• Also the sub-project has a project specific EMP.









Environmental Management Plan; • LE Monitoring Report • Information pertaining to EMP implementation;

Overall the EIA/EMP reports are found substantive in their content and adequately cover all the aspects of mitigation measures including a budget of Rs 99.11 lakh. Further, other clearances and permits were also reviewed. Overall the environmental safeguard measures are met in the project.


As part of the legal document the E&S conditions is included under CLA Article (vii) a&b “The Borrower shall comply in all respect with all Applicable Law (including pollution board requirements, if any)………………………..the admissibility as evidence in India of the Transaction Documents.” As per article 5 under obligations of Concessionaire in concession agreement, the concessionaire shall comply with all applicable laws and applicable permits (including renewals as required) in the performance of its obligations under this agreement. . It is also mentioned that Concessionaire shall ensure and procure that its contractors comply with all applicable permits and applicable laws in the performance by them of any of the Concessionaire’s obligations under this agreement. As per Clause 5 of EPC Contract, The EPC Contractor has agreed to execute the EPC works by deploying all the input resources and in accordance with the provisions of the said “Concession Agreement”, and be completely responsible for the Engineering, Procurement and Construction of the project. As per clause 5, The EPC Contractor shall comply with all labour laws and other statutory requirements as may be applicable in the work area.



implementable form










• The EMP compliance shows that concessionaire has taken adequate action to implement EMP measures; confirmed during the safeguard DDR and subsequent review.

8. Does the subproject comply with the applicable



• During review the same has been rechecked and confirmed.





Public Consultations were conducted to disseminate the project information and to record the views/aspirations of the local people from Screening Stage to Project Design Formulation Stage at different levels and using different techniques. Public consultations/FGDs were carried out for the project in Krawah Village, Kaskoot Village, Zenhal Village, Asher Village, Lamber Village, Chureel Village, Gund Tethar and Banihal.




• Rs 99.11 lakh has been earmarked for EMP implementation budget




• As per LE report necessary Environmental monitoring is being carried out in the project during the construction stage; confirmed during safeguard DDR preparation; and also checked during the audit review.


• The safeguard aspects implemented by the contractors and regularly monitored by the environmental safeguard team of Concessionaire.

• The report from lenders engineer is also submitted every quarter with inclusion of safe guard’s implementation & monitoring details.




The developer informed that they are using approach road up to the tunnel, which is being maintained by them with all traffic & road safety measures.


Current Project Progress achieved is 26.52 % and as far no major issues or complaints been received in the project;


During DDR and desk review the sub-project has no major outstanding issues with respect to environmental safeguards.








• The project does not pass through any National Park or Sanctuary. Further, no eco-sensitive areas are located within 10 km radius from the project site.



•The sub-project complies with all the national regulatory requirements, confirmed from safeguard DDR and desk review and, •The EMP measures are being implemented.


The confirmation mail of appointment of monitoring agency is yet to be received from the developer.


The monitoring results will be observed within the prescribed permissible limits.




• The overall implementation responsibility of the EMP lies with the Project Implementation Unit (PIU); Project Director at PIU is supported by the Environment Officer of NHAI. NHAI has appointed supervision consultant (SC) for carrying out audit of the project highway in accordance with the regulatory requirements and shall take all other actions necessary for securing compliance with such requirements. Chief Project manager of EPC Contractor is responsible for implementing the EMP during all phases of construction and ensures that all subcontractors are aware of and comply with the EMP.

14. Is the Lead Bank/Subproject Developer submitting reports to IIFCL and other lenders on

• The periodic lenders engineer’s report received from the lead bank reporting the Information in regard to

a regular basis? safe guard’s implementation status.


• Periodical environmental management during the project implementation is being carried out by the concessionaire.


No new Issue


Not Applicable



• The project does not pass through any National Park or Sanctuary. Further; no eco-sensitive areas are located within 10 km radius from the project site.

• Concessionaire has confirmed the compliance with the agreed environmental measures/monitoring plans by the concessionaire, including public consultations during execution;


• The Current Sub-project therefore does not appear to have any reputational risks to ADB funding on environmental safeguards.

Names of audit team members: Gyanesh K Shukla Environmental Safeguard Specialist Reviewed by: Mr. Sanjeev Ghai, CGM, & Head ESMU Date of subproject audit: The audit is based on the information/documents provided by

the developer. Date of Submission 14/01/2013 (Initial submission)

15/03/2013 (Revised submission)



No. Company Name



vis ADB Safeguard

Policies


by ADB

Action Required by


1

M/s. Navayuga Quazigund Expressway Private Limited

Four Laning of 15.350 Km. Quazigund to Banihal Section from Km 189.350 to Km. 204.700 including two tunnels (2 lane) of 0.690Kms. And 8.450Kms of NH-1A in the state of Jammu & Kashmir on DBFOT (Annuity) basis in the state of Jammu & Kashmir.



• Periodic project monitoring including monitoring of EMP implementation is taken up during the construction stage;








Four Laning of Sambalpur-Baragarh-Orissa/ Chattisgarh Border section of NH-6 from Km 0.00 to Km 88.00 in the State of Orissa to be executed on DBFOT pattern under NHDP Phase � III


M/s. Ashoka Sambalpur-Baragarh Tollway Pvt. Ltd


Axis Bank (Lead Bank), India Infrastructure Finance Company Limited (IIFCL), Punjab National Bank (PNB), Bank of Baroda (BOB) and Bank of India (BOI).



5. Location:

Orissa/Chattisgarh Border Section (km 0.000 to km 88.000) of NH-6



7. Sub-loan (US$):

Till date disbursed amount is US$11,277,294.98


Currently 31.10% progress achieved (MPR-Nov.12)


ADB Safeguard Policy 2009




Yes, Environmental and Social Due Diligence (ESDD) was completed by IIFCL in August 2012.

12.Number of IIFCL safeguard site visits • Safeguard due diligence site visits by the Environmental and Social safeguard specialists of IIFCL during 3rd & 4th July 2012.

• In addition to the safeguards site visits, The Lenders Engineers (LE) undertake Quarterly site visit to sub-project for monitoring the following aspects of the project. - Physical Progress; - Financial progress; - Status of clearances, Health & Safety aspects




- Land acquisition status of the project, - Overall review and assessment of the project






environmental clearance as well as permits and approvals for project implementation confirmed during the safeguard due diligence;


• Also the sub-project has a project specific EMP.










Overall the EIA/EMP reports are found substantive in their content and adequately cover all the aspects of mitigation measures including a budget of 8.5 Crores (as given in EIA Report). Further, other clearances and permits were also reviewed. Overall the environmental safeguard measures are met in the project.


As part of the legal document the E&S conditions is included under CLA Article (V) Conditions for pre- disbursement 5.2 (J) as: “The Borrower shall have obtained all necessary statutory and other Government Approvals…………… including all necessary environmental clearances from the appropriate authorities………….applicable for

preconstruction and construction phase. As per EPC Contract, under Clause-4 for The Contractor, under sub-clause of 4.1, it has been mentioned that the EPC Contractor will comply with all applicable permits and applicable laws in the performance of the contractor’s obligations under this EPC contract, will obtain at its cost, all the necessary environmental clearances, cut the trees and carry out compensatory afforestation. As per sub-clause 4.4 for Environmental Measures, the contractor agrees to conduct his activities in connection with the contract in such a manner so as to comply with the environmental and social management plan and assume full responsibility for measures, which are required to ensure such compliance.



implementable form




in these agreements. • As per EPC Contract, sub-clause 4.4 for Environmental

Measures, the contractor agrees to conduct his activities in connection with the contract in such a manner so as to comply with the environmental and social management plan and assume full responsibility for measures, which are required to ensure such compliance.







• The EMP compliance shows that concessionaire has taken adequate action to implement the EMP measures; confirmed during the safeguard DDR and subsequent review.



• During review the same were rechecked and confirmed.





Formal Public Hearings as part of Environment Clearance Process were conducted to disseminate the project information and to record the views/aspirations of the local people along this NH section in both the districts (Baragarh and Sambalpur). Public hearings were carried out for the project in Baragarh district on 27.03.2011 at Town Hall, Baragarh, and on 12.03.2011 at Babubandh, UGME School, Sambalpur.




• budget of Rs. 8.5 Crores has been earmarked for EMP implementation budget

• The same has been considered in the EPC cost during the financial appraisal. (Source: Discussed with the project developer)




• EPC Contractor has outsourced the job of environmental monitoring to an Environmental Laboratory namely M/s. Anacon Laboratories Pvt. Ltd. at Nagpur. As informed by project developer, Frequency of ambient air quality, noise level monitoring, water quality & stack monitoring will be on half-yearly basis. As per the report attached, the levels of environmental quality parameters are within the permissible limits as per Indian standards, at plant locations.

2. Is the concessionaire/Lead Bank submitting

safeguard monitoring reports to IIFCL on a regular basis?

The periodic lenders engineer’s report received from the lead bank reporting the Information in regard to safe guard’s implementation status.




Recent Accident report submitted for the month of Oct.12 showed No Accidents during implementation. Safety provision will be taken through providing Bus Bays, Service road as per IRC guidelines.


Current Project Progress achieved is 31 % and as far no major issues or complaints reported in the project.


During DDR and desk review the sub-project has no major outstanding issues with respect to environmental safeguards.




8. Is the subproject compliant with ADB environmental assessment requirements?

Yes, the subproject is responsive to ADB’s environmental safeguard requirements. It is observed that:







•The sub-project complies with all the national regulatory requirements; confirmed from safeguard DDR and desk review and, •Most of the EMP measures are being completed.








• The overall implementation responsibility of the EMP lies with the Project Director of NHAI. The PD is supported by the Environment Officer of NHAI. From the concessionaire end, the Chief Project Manager through his Environmental Officer and package wise HSE Engineers of the contractor take care of the implementation of the Environment, Safety and labor related aspects. Chief Project manager of EPC Contractor is responsible for

implementing the EMP during all phases of construction and ensures that all subcontractors are aware of and comply with the EMP.


• The periodic lenders engineer’s report received from the lead bank reporting the information of safe guard’s implementation status.


mechanism • Periodical environmental management and

monitoring during the project implementation is being carried out by the concessionaire.


No new Issue


Not Applicable



• The sub-project does not affect any eco-sensitive zones as declared by MoEF. Also the project does not pass through any national park or wild life sanctuary area. No historical or archaeologically important monuments are affected due to this road project;

• Concessionaire has confirmed the compliance with the agreed environmental measures/monitoring plans by the concessionaire, including public consultations during execution;


• The Current Sub-project therefore appears not to involve significant reputational risks to ADB funding on environmental safeguards.


the developer. Date of Submission 14/01/2013 (Initial Submission)

15/03/2013 (Revised Submission)



No. Company Name



vis ADB Safeguard

Policies


by ADB

Action Required by


1

M/s. Ashoka Sambalpur-Baragarh Tollway Pvt. Ltd

4/6 Laning of Sambalpur-Baragarh- Orissa /Chattisgarh Border Section(km 0.000 to km 88.000) of NH-6 including Baragarh Bypass



• Periodic monitoring of EMP implementation and physical environmental parameters is taken up during the construction stage;

