INTEGRATED SAFEGUARDS DATA SHEET CONCEPT STAGE Public Disclosure Copy Report No.: ISDSC1989 Date ISDS Prepared/Updated: 11-Dec-2012 Date ISDS Approved/Disclosed: 25-Jan-2013 I. BASIC INFORMATION A. Basic Project Data Country: India Project ID: P131765 Project Name: Eastern Dedicated Freight Corridor - II (P131765) Task Team Benedictus Eijbergen Leader: Estimated 00-undefined-0000 Estimated 24-Oct-2013 Appraisal Date: Board Date: Managing Unit: SASDT Lending Adaptable Program Loan Instrument: Sector: Railways (97%), Public administration- Transportation (3%) Theme: Infrastructure services for private sector development (97%), Climate change (3%) Financing (In USD Million) Financing Source Amount Public Disclosure Copy Borrower 516.00 International Bank for Reconstruction and Development 1050.00 Financing Gap 261.00 Total 1566.00 Environmental A - Full Assessment Category: Is this a No Repeater project? B. Project Objectives The project development objectives for this operation are to: (a) provide additional rail transport capacity, improved service quality and higher freight throughput on the 390 km Kanpur to Mughal Sarai section of the Eastern rail corridor; and (b) develop the institutional capacity of DFCCIL to build and maintain the DFC infrastructure network. C. Project Description The proposed operation is a US$1.05 billion loan from IBRD to finance civil works and technical assistance needed for an additional 393 kms along the Eastern Dedicated Freight Corridor between Kanpur (Bhaupur) and Mughal Sarai. The Government of India will contribute approximately US $516 million to the project alongside the Bank’s loan. DFCCIL will implement all project investments and a ‘Subsidiary Agreement’ will provide the basis for the Company to deploy project Public Disclosure Copy funds received via the Ministry of railways. The implementation model for developing civil works and undertaking subsequent operations and maintenance of infrastructure assets along the Eastern Dedicated Freight Corridor is still under development. DFCCIL and the Ministry of Railways are examining different conventional contract structures and potential PPP options. Because the DFC program is a project of national significance a key concern is that an implementation model be adopted that aligns with the planned timing for opening the Eastern Dedicated Freight Corridor to traffic. A parallel challenge has emerged in the form of a US$ 490 million gap in the DFC program’s financing plan for the proposed Bank-financed section from Ludhiana to Mughal Sarai. Despite downward revisions in estimated costs for the initial Khurja-Kanpur section (APL-1) price escalation is expected to increase overall program costs beyond original estimates. The Government of India has also decided to cap the overall amount of IBRD lending to the project at US$2.4 bn. A key aim of APL-2 will be to explore ways of leveraging Bank financing to bridge the resulting financing gap from other sources. In this context, GoI has requested the Bank to suggest credible plans/options for raising the balance of funds required, with clear indication of the feasibility, rates, tenors, time frames and other commercial terms that such financing may involve. The Government appears open to considering various forms of credit enhancements – including those offered by various members of the World Bank Group. D. Project location and salient physical characteristics relevant to the safeguard analysis (if known) The Project proposed for World Bank financing is a 390 km section of the 1816 km long Delhi- Kolkata route from Kanpur to Mughal Sarai in Uttar Pradesh (DFC East), which is the most congested section of the heavily trafficked Eastern Corridor. The first phase of this corridor for Public Disclosure Copy Khurja (near Delhi) to Kanpur (330 km) on the same route is being implemented as part of APL 1 supported by the Bank. The corridor traverses the Indo-Gangetic plain eventually connecting the port of Kolkata on the Bay of Bengal in the east, to the industrial heartland of northern India in the north- west. The corridor would be mostly parallel to the existing railway route with diversions in densely populated areas to minimize displacement of people and economic activities. The length of the Mughalsarai-Bhaupur (Kanpur) Corridor (APL- 2) is 393 Kms (double line), of which 143 Kms are in detour section and the balance 250 Kms run parallel to the existing North Central Railway lines. The proposed APL-2 section traverses through 7 districts and 372 villages in the state of Uttar Pradesh. The ROW width is around 20-40 m in the parallel sections and 40-60 m in the detour sections. Four Chief Project Managers have been appointed for the APL-2. Location Alternatives: Steps taken by DFCC to minimize displacement include: exploring alternative alignments, reducing track distances at some locations (Jigna, Baridubey, Bamrauli, Nodiya ahmadkarari, Dayramithepuri, Baragaon, Pansaur and Sayed Sarawan), reducing embankment heights, ruling out service roads in built-up stretches, providing retaining wall/fencing of DFC at suitable distance from last track of DFC, 3 meters extra width (if land is available) from residences to the retaining wall in order to provide access to the local residents, if additional land is not available, with access to residents from other side of their house, to be planned during implementation, and having short detours at congested locations such as Fatehpur, Khaga, Sirathu, Barwari, Allahabad, Manda and Mirzapur. E. Borrowers Institutional Capacity for Safeguard Policies Public Disclosure Copy DFCIL is a ‘special purpose’ company set up to implement GoI’s ambitious plan of developing a dedicated freight corridor along the golden quadrilateral (Delhi – Mumbai, Delhi – Kolkata, Chennai – Kolkata and Mumbai – Chennai) of Indian Railways. Currently, the agency is implementing the western corridor (Delhi – Mumbai) with financial assistance from JICA and the eastern corridor (Delhi – Kolkata) with the financial assistance from The World Bank. The environmental regulations of GoI do not mandate railway projects to obtain environmental clearances from the Ministry of Environment & Forests (MoEF). However, as part of the programmatic implementation of eastern corridor supported by the Bank, DFCIL has developed an Environmental Policy and Environmental Management Framework applicable for all its activities. As part of these proactive initiatives, the agency has also carried out “Green House Gas Emission Analysis� of both the eastern and western corridors. Considering the nature and scale of construction activities DFCIL has also developed Silicosis Reduction Strategies to be implemented in its construction activities. To implement these initiatives, DFCIL has set up a Social and Environmental Management Unit (SEMU) headed by a General Manager. SEMU implements all the safeguard activities at DFCIL, and is supported by an AGM and one environmental and social specialist each. Environment Safeguards Capacity: This unit has successfully carried out the safeguard due diligence activities for APL 1 comprising (i) carrying out an Environmental Assessment of Khurja – Kanpur Section (ii) Environmental Assessment of Tundla Detour of APL 1 (iii) Environmental Assessment of Rail Over Bridges along the eastern corridor (iv) Secured clearances from Taj Trapezium Authority, Archaeological Department for Tundla Detour (v) permissions for majority of forest land Public Disclosure Copy diversion and tree cutting clearances, etc. In addition to the above, Environmental Assessments for APL 2 (Kanpur – Mughul Sarai) and APL 3 (Ludhiana – Khurja), are also in the advanced stage of preparation. By performing these safeguard activities, DFCIL has demonstrated its commitment to environmental management and ability to comply with safeguard policies of the Bank. However, DFCIL has limited experience in implementing Environmental Management Plans (EMP). This would require further handholding and capacity building of SEMU and Project Managers Staff in the field. The Bank team would work with DFCIL and will ensure these capacities are developed at DFCIL. Social Safeguards Capacity: The Resettlement Policy Framework (RPF) established by the DFCCIL for the EDFC project lays out the implementation arrangements for planning, implementing and monitoring the social safeguards activities. The SEMU, led by the General Manager and assisted by an AGM and a Social Development Specialist, is responsible for planning and monitoring of all the social safeguards activities, which are implemented at the field level offices by the Chief Project Managers (CPM) assisted by the Assistant Project Managers (APM)-Social. The SEMU has hired facilitating NGOs for implementing R&R activities for the APL- 1 (Khurja-Bhaupur-349 km) and will do the same for the APL- 2, for which they have already initiated the procurement process. Similarly, in order for maintaining independent oversight, the SEMU will hire a Social and Environment Safeguards Monitoring and Review Consultants (SESMRC) for APL- 2, similar to monitoring arrangements established for APL- 1. The process for hiring SESMRC for the APL-1 is at the final stage. Public Disclosure Copy DFCCIL has established a three-tier independent Grievance Redress Mechanism (GRM). The field level grievance committee (FLC) shall be convened by CPM where the Additional District Collector shall be the member, and other members will be the President, Zila Parishad (District Council) and a representative from a reputed local NGO. The Headquarters level grievance committee (HLC) shall be convened by GM/SEMU where the Director, Project and Planning shall be the member and there will be one member from Ministry of Railways. Arbitrators have been appointed to hear grievance cases relating to payment of compensation for land to be acquired under RAA, 2008. DFCCIL has also appointed an Ombudsman in May 2012 for hearing cases not resolved to the satisfaction of the aggrieved PAP/PAF at the levels mentioned above, including cases directly referred by the DFCCIL. The SEMU is also in the process of establishing a database management system for tracking the grievance handling system and progress of LA and R&R activities. While the DFCCIL’s efforts to establish the above institutional arrangements reflect its commitment to implement the RAP for the APL-2 in a diligent manner, the safeguards capacity gap remains to be bridged, more so in view of the scale of the LA and R&R activities vis-à-vis the relative inexperience of the DFCCIL in this field. Whereas, the SEMU has demonstrated its capacity to effectively plan safeguards activities by completing the Social Impact Assessment (SIA) and Resettlement Action Plan (RAP) for the APL-2, and has successfully carried forward the land acquisition process on schedule, recent field visits have indicated gaps in field level implementation capacity, especially with regard to information dissemination and people’s mobilization for carrying out R&R activities. Therefore, SEMU will need to enhance its staff capacity at the field level, and will require training and sustained technical support during the implementation period. The Bank safeguards team will work very closely with the DFCCIL to address the above issues including through regular field visits, and training support. As per the agreed framework for safeguards review, DFCCIL will carry out an external safeguards Public Disclosure Copy quality audit in order to record lessons learnt during the implementation of APL-1 and address any emerging safeguards issues and challenges prior to the Appraisal, including a few outstanding policy issues already raised with DFCCIL, such as providing (a) uniform guidelines regarding compensation for the traditionally occupied community (abadi) lands for residential and commercial purposes, (b) further clarity regarding compensation issues, (c) norms of compliance with Arbitrator’s award in case of dispute. DFCCIL will need to establish the agreed implementation arrangements by the Appraisal. F. Environmental and Social Safeguards Specialists on the Team Satya N. Mishra (SASDS) Harinath Sesha Appalarajugari (SASDI) II. SAFEGUARD POLICIES THAT MIGHT APPLY Safeguard Policies Triggered? Explanation (Optional) Environmental Assessment OP/ Yes BP 4.01 Natural Habitats OP/BP 4.04 No Forests OP/BP 4.36 No Pest Management OP 4.09 No Public Disclosure Copy Physical Cultural Resources OP/ Yes BP 4.11 Indigenous Peoples OP/BP 4.10 No Involuntary Resettlement OP/BP Yes The SIA has been carried out and Draft RAP 4.12 prepared. Safety of Dams OP/BP 4.37 No Projects on International No Waterways OP/BP 7.50 Projects in Disputed Areas OP/BP No 7.60 III. SAFEGUARD PREPARATION PLAN A. Tentative target date for preparing the PAD Stage ISDS: 11-Mar-2013 B. Time frame for launching and completing the safeguard-related studies that may be needed. The specific studies and their timing1 should be specified in the PAD-stage ISDS: A detailed environmental assessment (EA) of the Kanpur – Mughal Sarai section (390 km) of APL 2, has already been prepared by DFC. The study has been prepared in line with the Environmental Management Framework agreed in APL 1 and has already been disclosed at DGCIL’s web site for feedback from the stake holders. The Bank team is reviewing this document and the same will be ready for review and clearance of Regional Safeguards Advisor, by January 2013. Public Disclosure Copy Social Safeguards: The social impact assessment for the APL-2 has been carried out by DFCCIL as per the ToR provided in the Resettlement Policy Framework (RPF). Based on the SIA, the Rehabilitation Action Plan (RAP) has been prepared by DFCCIL, which has been reviewed by the Bank and has been submitted to the Regional Safeguards Advisor for formal clearance and disclosure on the Infoshop. The draft RAP has been disclosed on the DFCCIL website. The RAP will be disclosed on the Bank Infoshop after final clearance from the Regional Safeguards Advisor. As per the SIA and the draft RAP, the APL-2 requires 1400 ha of land of which 1250.57 ha are private land and rest 144.44 ha are government land. A total of 13,034 households are affected of whom 12,466 lose land including 1824 small and marginal farmers. A total of 568 households lose land/structures including 264 residences and 14 shops with title, 166 residences and 84 shops without formal title, 15 tenants, and 25 kiosks. In addition to this a total 55 community properties including 22 temples, 2 mosques, 3 hospitals, 5 schools, and 22 burial grounds/tombs will be affected. IV. APPROVALS Task Team Leader: Name: Benedictus Eijbergen Approved By: Regional Safeguards Name: Sanjay Srivastava (RSA) Date: 15-Jan-2013 Coordinator: 1 Reminder: The Bank's Disclosure Policy requires that safeguard-related documents be disclosed before appraisal (i) at the InfoShop and (ii) in country, at publicly accessible locations and in a form and language that are accessible to potentially affected persons. Sector Manager: Name: Karla Gonzalez Carvajal (SM) Date: 25-Jan-2013 Public Disclosure Copy Public Disclosure Copy