Developing Projects in an Environmental and Social Management Framework - A presentation by Dr. Prasad Modak

1. Developing Projects in an Environmental &
Social Management Framework
Dr. Prasad Modak
Executive President and Founder

2. Development Projects and
Environmental & Social Issues
• Intensions of most development projects are
good
• Projects are to benefit the society and lead to
economic development
• But there are bound to be environmental and
social (E&S) issues
• Some of the E&S issues can be critical

3. Environmental & Social Issues are
‘Material’
Cost of Environmental Management
Plan
Cost of restorative measures on
damage caused
Peoples protest
Project delays
Higher Project Cost
Developers & Investors are affected
• E&S Issues not just critical
in terms of impacts/risks to
the environment and society,
they also have “material” or
economic implications

4. We address E&S Issues through
“Project EIA”
• Conduct EIA on projects (Social Impact Assessment?)
• Follow process of Environmental Clearance as under EIA
Notification

5. Canvas of Legislation
• Water Act & Rules, 1974
• Water Cess Act, 1978
• Air Act, 1981
• Environment Protection Act, 1986
 Environmental Impact Assessment
 Coastal Regulation Zone
 Hazardous Wastes (Management &
Handling) Rules
 Noise Pollution
 Batteries Rules
 Notifications on Special Areas
• Forest (Conservation) Act, 1980
& Forest (Conservation) Rules,
2003
• Wetlands (Conservation &
Management) Rules, 2010
• Wildlife Protection Act, 1972
• Building & Other Construction
Workers Act, 1996
• ….

6. Is Compliance to
legislation sufficient?

7. EIA leads to Environmental & Social
Management Plan
• Environmental & Social Management Plan is the major
outcome of project EIA
• It spells out preventive & mitigation measures,
monitoring plan, resources needed, training & capacity
building needs and roles and responsibilities

8. Project Screening & Categorization
• Criteria
• Project Type, Project Size and Project Location
• Project Categories A, B, C…
• Helps in Focus, Detail & Procedures

9. Programmatic EIA
• E&SMP takes a prescriptive form
Programmatic EIA
(not project limited)
Ensures Consistency with
Opportunities for Localization
or Adaptation
Inclusion of Best Practices

10. Urban Context
• Number of projects are undertaken as a part of long term
development plan
• A silo approach of Project EIA may not be effective. There will
be risks that will remain unidentified
• Generation & Analyses of Alternatives becomes critical
• A Regional Assessment is required that looks at cumulative,
indirect and induced impacts

11. Impact & Risk
• Impact –
• A Change (Positive, Neutral or Zero, Negative),
• Extent or magnitude
• Risk –
• Probability of impact
• Likely magnitude
• Scenarios of Consequences (Climate change)

12. Impact Typology
• Direct
• Indirect
• Cumulative
• Induced

13. Project EIA to
Environmental
& Social
Management
Framework
Direct
Impacts
Indirect
Impacts
Induced
Impacts
Area of
Influence
Project
specific
Mitigations
Plan
Cumulative/
Regional /
Programmatic
EIA
Policy
Strategic EIA
Environmental & Social Management
Framework
Project EIA
• Project EIAs have
limitation when it comes to
Area wide development
Category A
Category B
Category C

14. EIA and
Development
Effectiveness
• Development Effectiveness
will increase when
Environmental & Social
Management Framework is
present
Project
EIA
ESMF
Development Effectiveness
HowisEIA
Managed

15.  Need for Environmental & Social
Management Framework (ESMF)
 Project EIAs need to be embedded in
the ESMF

16. • Sets out Policy and Principles across the projects
• Addresses cumulative, indirect and induced impacts and risks
• Integrates environmental and social aspects in the project cycle
• Emphasizes generation and analyses of alternatives
• Focuses on avoidance, minimization and mitigation of impacts/risks
• Recommends required institutional capacity building measures for effective
project delivery and management
• Conducts Monitoring and comes up with required Adaptations
• Stakeholder involvement, reporting and disclosure are given paramount
importance
What does a ESMF do?

17. ESMF
Policy
Institutional
Capacities
Programme
Project
Plan Stakeholder
Involvement
Regulators
Investors &
Partners

18. OperationalFramework
Typical ESMF
Guiding & Operational Principles
E&S Risk Identification and Management
E&S Policy
External Audit
Management Review
Training & Capacity Building
Identification of E&S Risks, Prevention &
and Control
Monitoring, Adaptation & Reporting
Stakeholder Engagement
Document Update
Document Control
Screening & Categorization
Integration

19. Pre-
Feasibility
Studies
Feasibility
Studies
Project
Design
Project
Implementati
on
Project
Completion
Project
Concept Note
• Screening & Categorization
(REA checklists) –
Annexure 1-8
• Inception Report –
Annexure 9
Loan Fact
Finding
• Scoping
o Stakeholder
Consultations
o ToR for
Environmental
Assessment –
Annexure 10 &11
• Analysis of Alternatives
(Category A)
• Documentation (RRP,
PAM, SPCM, EA
approval, Monitoring
requirements) –
Annexures 12-14
Project
Cycle
Loan
Negotiation
Loan
Implementati
on
Loan
Completion
• Initial Environmental
Examination/ Environmental
Impact Assessment
• Environmental Management
Plan (EMP)
• Environmental Covenants in
Loan Agreement linked to
Loan
Cycle
• Implementation of
EMP
• Supervision and
compliance monitoring
of EMP
implementation –
Annexure 18
• External Monitoring of
Category A Projects –
Annexure 19
• Monitoring of FIs –
Annexure 20 & 21
• Monitoring
Effectiveness of
Mitigation measures
• Monitoring &
Reporting on
compliance with
• Preparation of
PCR on
Environmental
Issues – Annexure
22
• Evaluation of
EMP
Information
Disclosure,
Consultation &
Participation,
Grievance Redress
Mechanism
ADB Environmental Safeguards in the Project Cycle

20. • EFRC introduced in Bhutan in 1999-2000 through the Rural
Access Project (RAP) I with technical assistance (EFRC-SP)
from SNV and financial support from the World Bank
• Main principles of EFRC are
 Protect the environment during construction
 Protect water sources and aquatic life
 Prevent damages to farm lands
 Protect cultural heritage
 Improve Quality of Road Construction
Environment Friendly Road
Construction (EFRC) - Bhutan

21. Department of Roads (DoR), Bhutan
• Environmental Codes of Practice
 Standard operating practice for all DoR
 A requirement for obtaining prior clearance from the
National Environment Commission (NEC)
 Part of the project tender documents and contract
documents packages
• ECoP is a summarized environmental management plan
for every project stage viz Planning, studying and
surveying; Design; Tender documents; Construction and
supervision; and Operation & maintenance

22. Gabion wall and French drain Controlled Blasting
Bioengineering – Check Dams with Gabion Walls
Use of local materials such as Log Barrier
before excavation

23. Pradhan Mantri Gram Sadak Yojna
(PMGSY)
• Connectivity by all-weather road to unconnected
habitations in rural areas
• Primarily funded by the Government of India
through the Central Road Fund (CRF), and
borrowing from multi-lateral agencies (World Bank)
• Environmental and Social Management Framework
(ESMF) prepared for assessment and management
of environmental and social issues in PMGSY
planning and implementation

24. PMGSY - Environmental and Social
Management Framework
• ESMF safeguard instruments:
 Environmental and Social Management
Framework (ESMF)
 Social Management (Resettlement and
Participation) Framework
 Environmental Codes of Practice (ECoP)
• ECoP- methods and procedures to be followed
by the Executing Agencies, Contractors and
other agencies in the projects.

25. PMGSY - Environmental and Social
Management Framework
• Indian Legislations and World Bank safeguards
• Screening of Sub-projects
• Institutional structure (roles and
responsibilities of Safeguard Specialist; Project
Implementing Unit at District and Field level
and Panchayati Raj Institution at District and
Field level)
• Implementation of ECoP

26. Other examples
• TNUDF
• IL&FS
• PowerGrid
• IDFC
• SIDBI
• IIFCL
• Axis Bank
• GIFT

27. Project
Screening and
Scoping
Impact
Assessment
Vulnerability
Assessment
Adaptation
Assessment
Implementation
Arrangements
Monitoring and
Evaluation
Screen the project exposure to climate change
Establish the adaptation objective
Survey existing information and knowledge
Identify and engage stakeholder
Identify methodology and data needs
Identify the required expertise
Construct climate change
scenarios
Estimate future biophysical
impacts
Assign probabilities to identified
impacts
Identify vulnerabilities
Identify biophysical drivers of
vulnerabilities
Identify socioeconomic drivers
of vulnerabilities
Identify all potential adaptation
options
Conduct consultations
Conduct economic analysis
Prioritize and select adaptation
option(s)
Establish arrangements
for implementation
Identify needs for
technical support and
capacity building
Design monitoring and
evaluation plan
Feedback into policy- making and
knowledge management process
Project and
Scoping
Approval
Implementation
Completion/
Evaluation

28. Proposed Coastal Road in Mumbai
http://indianexpress.com/article/explained/mumbai-coastal-road-a-swot-analysis/
• 35.6 km length along Mumbai’s western sea cost
• Link from Nariman Point in South to Kandivali in
North
• 22 entry and exit points
• Rs.9,000-crore investment

29. Reasons for Coastal Road
• High growth in the number of vehicles
• Traffic congestion
• Low speed of travel
• Air pollution
• Long time of travel
• Poor quality of life

30. Coastal Road Benefits
• Facilitate speedy travel at speeds of about 90 kmph
• Relieve the internal roads by taking traffic away
• Enhance traffic speeds – less time in commuting
• Reduce air pollution on city roads.
• Reduce health hazards caused by pollution
• Provide green open space (about 75 Ha) and
waterfronts
• Enhanced quality of life

31. Coastal Road Impacts
• Loss and Damage to Environmentally sensitive
areas
• Alteration in land use pattern causing land use
conflicts
• Change in topography, hydrology, etc.
• Coastal pollution due to release of air
emissions, waste water and waste during
construction
• Damage to biodiversity
• Impact on fishing communities
Environmental
& Social
Risk

32. Questions
• Is regional environmental & social assessment of
Mumbai’s and MMR’s development been done?
• Is sectoral assessment of the transportation plant of
Mumbai done?
• To what extent has the EIA addressed Climate
Change related risks?
• Shouldn’t there by a ESPF at MCGM/ MMRDA?

33. The Debate
The debate should not be about
Whether the Project is Good or Bad?
But,
Whether the process followed was conceived and
followed right?

34. Thank you…