The World Bank Assam Inland Water Transport Project (P157929) Combined Project Information Documents / Integrated Safeguards Datasheet (PID/ISDS) Appraisal Stage | Date Prepared/Updated: 25-Sep-2019 | Report No: PIDISDSA23164 Feb 25, 2019 Page 1 of 19 The World Bank Assam Inland Water Transport Project (P157929) BASIC INFORMATION OPS_TABLE_BASIC_DATA A. Basic Project Data Country Project ID Project Name Parent Project ID (if any) India P157929 Assam Inland Water Transport Project Region Estimated Appraisal Date Estimated Board Date Practice Area (Lead) SOUTH ASIA 07-Oct-2019 21-Nov-2019 Transport Financing Instrument Borrower(s) Implementing Agency Investment Project Financing India Transport Dept., Govt. of Assam, Dispur, Guwahati (Assam), India Proposed Development Objective(s) The project development objectives are to: (a) Improve passenger ferry infrastructure and services in Assam, and (b) to improve the institutional capacity and framework Components Institutional, regulatory and safety strengthening Fleet safety and modernization Improvement in terminal infrastructure Project Management Support PROJECT FINANCING DATA (US$, Millions) SUMMARY -NewFin1 Total Project Cost 100.00 Total Financing 100.00 of which IBRD/IDA 80.00 Financing Gap 0.00 DETAILS -NewFinEnh1 World Bank Group Financing International Bank for Reconstruction and Development (IBRD) 80.00 September 25, 2019 Page 2 of 19 The World Bank Assam Inland Water Transport Project (P157929) Non-World Bank Group Financing Counterpart Funding 20.00 Borrower/Recipient 20.00 Environmental Assessment Category A-Full Assessment Decision The review did authorize the team to appraise and negotiate B. Introduction and Context Country Context 1. While still high by global standards, India’s growth rate has decelerated in the past two years. After peaking at 8.2 percent in FY16/17, economic growth has been lower in FY17/18 (to 7.2 percent) and FY18/19 (to 6.8 percent). Estimates for the first quarter of FY19/20 suggest that growth is likely to be soft by Indian standards at around 6.4 percent for the full fiscal year (assuming the external environment remains benign). In addition to relatively low levels of private investment over the past several years, the latest data shows a broadening of the slowdown across all categories of aggregate demand. Although the current account deficit widened to 2.1 percent of GDP in FY18/19, robust capital inflows during the second half of the year allowed for a build- up of international reserves to US$ 411.9 billion at the end of the fiscal year (equivalent to 10 months of imports). Going forward, subdued import growth and benign oil prices are expected to contain the current account balance to some extent. On the fiscal side, the general government deficit is estimated to have widened to 5.9 percent of GDP in FY18/19 but is expected to consolidate to 5.7 percent in FY19/20. 2. Since the 2000s, India has made remarkable progress in reducing absolute poverty. Between FY11/12 and 2015, poverty declined from 21.6 to an estimated 13.4 percent at the international poverty line (2011 PPP US$ 1.90 per person per day), continuing the earlier trend of fast poverty reduction. Thanks to robust economic growth, more than 90 million people escaped extreme poverty and improved their living standards during this period. Despite this success, poverty remains widespread. In 2015, 176 million Indians were living in extreme poverty, while 659 million - half the population- were below the higher poverty line commonly used for lower middle-income countries (2011 PPP US$ 3.20 per person per day). Sectoral and Institutional Context 3. The proposed Project is focused on public passenger transport by river ferries in the state of Assam. The state of Assam with a total geographical area of 78,438 sq.km. is predominantly rural (98.4 % area). Accessible IWT transport is vital for the lives and livelihoods of char and riparian communities in Assam and the project will September 25, 2019 Page 3 of 19 The World Bank Assam Inland Water Transport Project (P157929) assist with improved connectivity/ access to basic services such as health, employment and education for numerous villages and far off chars. Around 31.2 million people live in Assam (2011 census) a population that grew by nearly 17 percent since 2001. GDP/capita in the state is only around two-thirds of India’s average, ranking 22nd out of 29 of India’s states. Most of Assam’s people live and work in the Brahmaputra valley or close to it: the river Brahmaputra (also designated as national waterways 2) flowing east to west, bisects the entire state for 891 km between the Bangladesh Border and Sadiya. It generally varies in width from around 1-10 km but in parts is up to 20 km wide. It contains many inhabited islands including Majuli Island, the world’s largest inhabited river island. Flowing through the heart of the state, the Brahmaputra is a formidable physical barrier, with only five bridges along its entire length, which reflects the very high costs of bridging such a river. For that reason, the river is also a vital transport asset: the majority of Assam’s more than 350 ferry routes cross the Brahmaputra or serve its islands, providing a crucial means of transport for thousands of communities in both the urban and rural areas of the Brahmaputra valley. In addition to Brahmaputra, navigational facilities are also maintained on the Barak river (designated national waterway 16), which flows through southern Assam for a stretch of 134 km before flowing into Bangladesh. 4. Of all Indian states, Assam has the largest network of navigable waterways. GoA has taken on the challenge of modernizing the ferries sector which, though vital to the state, remains largely informal and weakly regulated. The challenge is multi-faceted: it includes the governance and regulation of the sector; the standards, equipment and amenity of many vessels; the rudimentary navigational aids currently used; and the condition of many ferry terminals that are no more than improvised moorings needing relocation with changing river conditions, often for substantial distances and to locations with poor ‘last-mile’ connectivity. 5. Assam is vulnerable to climate change due to its location in the Eastern Himalayan periphery and increases in temperatures will affect rainfall and monsoon patterns in the region. The state is already characterized by high rainfall and gets annual floods, whose severity has risen due to adverse climatic conditions. The poor are more vulnerable to extreme climate events and the drastic climate change projections are particularly worrisome for Assam as almost 32 percent of its population lives below the poverty line. 6. Development of waterways and ferry services provide low cost options to integrate transport networks north and south of the river, vis-à-vis the construction and maintenance of flood resilient roads and bridges across the long stretches of Brahmaputra. IWT is also sustainable, in that it provides opportunities for modal shift to low carbon transport option for passenger as well as potential freight movements. However, the development of fixed terminals in the waterways has been challenging due to long flood season from June to September and the subsequent dry period, which reduces and alters the river flows and navigation channels considerably. The vulnerability of the transport infrastructure to high intensity of floods every year can be extremely detrimental to the economy. There is a need for a transformational shift towards policies and institutions that enable climate resilient investments. GoA has constituted the Assam Climate Change Management Society (ACCMS) in 2018 to tackle the impacts of climate change and environmental issues. 7. The ferries are used by a wide-cross section of the people of the Brahmaputra Valley despite limited ferry terminal infrastructure and the poor condition of the jetties or landing points. Surveys have identified the self- employed (30 percent), those in employment (20 percent) as major groups of users. But students are also a large user group (16 percent) as are people not in employment (18 percent), farmers (7 percent) and vendors (4 percent). These passengers rely on ferries for many reasons. Around half of their journeys are to a place of work, 10 percent to schools or colleges, 10 percent for business purposes, 3 percent for medical needs and September 25, 2019 Page 4 of 19 The World Bank Assam Inland Water Transport Project (P157929) the remainder for a wide range of social, recreational and other purposes (including temple visits). Two-thirds of passengers are purely foot passengers, but around 30 percent cross the river with pushbikes or motorcycles, and around one in twenty travels with milk, poultry, vegetables or other traded goods. Assam’s ferry services are therefore integral to connectivity, mobility and livelihoods, doubly so because the alternative would involve very long and costly journeys by road. The cost in time and money of the alternative would for many people be prohibitive, restricting their accessibility to jobs, produce markets, social and educational opportunities. 8. The state is home to diverse cultural and ethnic groups, the lives of many of whom closely interact with the river. There are 11 percent of the household heads who belong to a scheduled caste, 13 percent to a scheduled tribe and 27 percent to other disadvantaged classes. The incomes of nearly half of all ferry passengers are equivalent to just over one USD/day. 9. About a quarter of all ferry passengers are women and girls. Women carrying marketable goods, the elderly, people with disabilities and children find it difficult to reach the boats and ferries and load/unload their goods. The ghats (ferry terminals) have few facilities, limited seating (if any) or toilets or drinking water. Many waiting areas are overcrowded when ferries are due. Travelling on the vessels can also be uncomfortable and difficult, particularly for women, children, older people and people with disabilities. Women considered overcrowding the main safety risk and are also fearful of accidents1. 10. Safety regulation also needs serious attention. Investigations into a passenger ferry accident in 2012 at Medartari in Assam's Dhubri district, which killed 150 people, revealed serious deficiencies in regulatory oversight, lack of communication systems and safety equipment, crew training deficiencies and inadequate disaster response planning. A more recent ferry accident near Guwahati in September 2018 that led to 3 fatalities indicated overloading, unreliable engine, and lack of crew training to respond properly to the engine failure. 11. The GoA itself is responsible for about 88 operational ferry routes in Assam and there are 272 others, overseen by the local (village) and district councils. The GoA ferry routes are managed by the Directorate of Inland Water Transport Assam (DIWTA), either directly (10 routes) or under different contract arrangements with private vessel operators (78 routes). DIWTA has a total of 127 vessels (excluding pontoons and vessels used as terminals) around 60 of which are leased to the private contractors. Traffic information is only available for the DIWTA administered ferries. The data recorded for the DIWTA administered ferry routes for 2017-18 indicates annual carriage of just over 9 million passengers and 43,000 tonnes of accompanied goods. Total passenger flow, including all ferry routes in the state, could well be more than double this estimate. 12. With Bank support, GoA is creating a more rigorous, tri-partite institutional framework that can provide a stronger foundation for sector governance and sustain the desired sector improvements. Within this framework, the high-level sector strategy and policy will remain the responsibility of the Department of Transport. Regulatory oversight will be reformed: safety, environmental and economic regulation (shipping, ports, shipbuilding) will be the responsibility of a new statutory Inland Waterways Transport Regulatory Authority, legislation for which was passed by the Legislative Assembly in September 2018 and is under implementation2. The GoA’s own ferry activities will be corporatized by establishing the Assam Shipping 1 Mazars Consultants for World Bank. Assam Inland Waterway Sector Study on Gender and Trade in Assam. December 2018. 2 Government of Assam. Inland Waterways Transport Regulatory Authority Act, 2018. September 25, 2019 Page 5 of 19 The World Bank Assam Inland Water Transport Project (P157929) Corporation (ASC) to operate the government ferries, and the Assam Ports Corporation (APC) to provide terminals and terminal services on a common-user basis to public and private ferry operators. DIWTA will continue to perform other industry-wide functions. 13. This proposed Assam Inland Water Transport Project is therefore an integrated package of institutional, regulatory and physical measures that will help Assam both to improve specific ferry services and strengthen the capacity of GoA institutions to administer, regulate and deliver better services throughout Assam. Alongside its support for the sector-wide reform program, the Bank will finance priority investments in safety management, private and public ferry fleet improvements, and replicable terminal improvements on the major Guwahati and Majuli routes and several pilot rural routes. The development will also facilitate opportunities for tourism, trade-related activities and increased social mobility of women (and other vulnerable groups such as children, differently abled, elderly and infirm) through a safe, reliable and socially inclusive IWT system. 14. The proposed Project is focused on passenger ferry services. Only a very small volume of commercial freight barging activity exists along the Brahmaputra (less than a million tonnes/year) and even lesser on Barak. The GoI’s Inland Waterways Authority of India (IWAI), established in 1986, provides and maintains the navigation fairway on National Waterways. The IWAI is considering to augment commercial freight transportation on the Brahmaputra, which is a National Waterway (NW2). That operation would focus on identifying key anchor commodities and heavy cargo for transport along the river and establishing an inland water transport system for the North East region, as an efficient alternative mode given the region’s high dependence on the narrow Siliguri corridor for direct connectivity to other parts of India. 15. The efforts of IWAI and GoA are being coordinated at both GoI/GoA level and areas of synergy sought. IWAI participates in the GoA meetings on this Project and GoA participates in GoI meetings on commercial development of NW2. One of the key synergies between the projects is that the new Assam Regulatory Authority will also regulate commercial freight shipping in the state: Bank support for establishing the Authority in this Project will therefore also benefit inland waterways freight service. This operation will also seek to derive mutual benefits by synergizing with other initiatives in the region including the on-going flood management of Brahmaputra and its tributaries supported by the Asian Development Bank, flood protection programs by Brahmaputra Board; and a newly formulated Technical Assistance Project requested by Ministry of Development of the North East Region for planning and management of water resources. 16. The Brahmaputra and Barak are also international waterways. At the regional level, cooperation policies between India and Bangladesh envisage a crucial future trade and transport role for IWT. The two countries’ bilateral protocol on international waterway transit routes (1972) was strengthened in June 2015 by the Coastal Shipping Agreement. This agreement allows goods to move by coastal shipping from Kolkata to Chittagong Port in Bangladesh and thereafter by inland waterways (predominantly via the Brahmaputra River) or other modes to Assam and other north-eastern Indian states. The two countries also agreed to seek international financing for development of year-round navigability of the protocol (waterway) routes between the two countries, as envisaged in the Bilateral Framework Agreement on Trade and Transit. C. Project Description September 25, 2019 Page 6 of 19 The World Bank Assam Inland Water Transport Project (P157929) Development Objective(s) The project development objectives are to: (a) Improve passenger ferry infrastructure and services in Assam, and (b) to improve the institutional capacity and framework. Key Results PDO Level Indicators The PDO will be measured by nine PDO indicators given below. Passenger ferry infrastructure and services – Reduction in overloading (as ratio of average actual occupancy to registered passenger capacity) during peak hours - on project supported ferry routes – Ferry service hours available in a day - on project supported ferry routes – Travel time savings vis-à-vis Road - on project supported ferry routes – No. of women users of night ferries for routes with night navigational facilities – User Satisfaction (on access, safety, quality of services, facilities etc) diaggregated by gender on project supported ferry routes - Percent Satisfaction Institutional capacity and framework – Regulation of IWT operations in Assam strengthened – Unbundling public sector operations from industry regulations – Enhanced sector capacity on safety and modern technologies – Establising an Emergency Response System 17. The project is an Investment Project Financing (IPF), with complete disbursement (USD 80 mn) under a results-driven (based on achievement of Disbursement Linked Indicators - DLI) approach. The project will finance investments into ferry infrastructure and services (terminals and vessels), institutional reforms, consultancies / analytical studies, training and capacity building, goods including ICT equipment, and support development and roll out of software applications. 18. The project activities are organized under following four components and nine sub-components collectively intended to tackle the regulatory, operational and infrastructure challenges of the sector. COMPONENT 1: Institutional, regulatory and safety strengthening (estimated cost USD 20 million). This component will include; a. Technical assistance: sector planning, design and roll-out of new Regulatory Authority, business planning for Assam Shipping Company (ASC) and Assam Ports Company (APC); Assam Transport Policy; training of staff to fulfill new roles in the restructured industry (USD 8 million); b. Safety management: river navigation aids, night navigation technology on some routes, and emergency response system (policy, procedures, vessel and equipment) (USD 12 million). COMPONENT 2: Fleet safety improvements and modernization (estimated cost USD 25 million). This September 25, 2019 Page 7 of 19 The World Bank Assam Inland Water Transport Project (P157929) will include financing of: a. A GoA incentive scheme (known as Jibondinga) to assist industry transition to the new regulatory regime; it is designed to help retrofit existing but acceptable vessels with modern marine engines and safety equipment and support the scrapping and replacement of unsafe or obsolete private vessels with new vessels (USD 10 million); b. Procurement of new vessels for the Assam Shipping Company and retrofitting of existing public vessels (USD 15 million). COMPONENT 3: Improvement in terminal infrastructure (estimated cost USD 45 million). This will finance: a. Provision of Priority terminals including repair facilities (USD 30 million); and b. Provision of smaller terminals at other locations (mainly rural routes) (USD 15 million). Component 3 will provide standard designs for modular and scalable infrastructure that can be adapted for other urban and rural ferry terminals. It also includes ancillary infrastructure such as road access, terminal buildings and other amenities for the physically challenged, women, children, old and infirm. COMPONENT 4: Project Management Support (estimated cost USD 10 million). This component will support implementation of the above three components and provide for costs on project preparation, implementation, coordination, monitoring, and evaluation. An important element of the component would support capacity augmentation and policy support on climate mitigation and adaptation through consultancies, knowledge events, staff training etc. The activities supported under the component include: a. Technical Assistance: Commissioning of a General Consultant to provide day to day management support, functioning as a secretariat to the AIWTDS/PMU (USD 1 million); and b. Office Modernization: Creating better and efficient working space (USD 1 million) for the AIWTDS c. Incremental Operating expenses: Supporting the remuneration of the staff / specialists hired at the AIWTDS, sector regulator and new companies being created and other relevant expenses. (USD 8 Million) D. Project Beneficiaries 19. The four main beneficiary groups of the Project are: the users of ferry services throughout the state of Assam, through better and safer services; private vessel owners through fleet modernization and upgrading of the existing fleet to better safety and service standards for operations under a strengthened regulatory regime; government employees in the institutions of the sector who will be trained to fulfill more effective and focused roles in the new institutions in industry; and the citizens of Assam who will benefit from the more efficient and effective public governance of the sector. E. Implementation Institutional and Implementation Arrangements 20. The counterpart administration is the Transport Department, Govt. of Assam. The project has led to the establishment of an Assam Inland Water Transport Development Society (AIWTDS) under the Transport September 25, 2019 Page 8 of 19 The World Bank Assam Inland Water Transport Project (P157929) Department, Govt. of Assam to implement the project. The newly formed AIWTDS hosts the Project Management Unit (PMU), which is headed by the Secretary/Transport Commissioner, Transport Department, in the capacity of State Project Director (SPD) while the Director DIWTA acts as the Additional State Project Director (ASPD). The SPD is responsible for overall project control and delivery, while the ASPD reporting into the SPD provides day-to-day administrative guidance to the project. The society is supported by professionals in procurement, financial management, transport & logistics, social development, environment safeguards etc. A professional consulting firm appointed as General Consultant (GC) to the PMU provides day-to-day functional support. Corporate oversight and management of the AIWDTS is provided by a Project Guidance Council (PGC) headed by the Chief Secretary to the GoA, and a Governing Body headed by the senior most Secretary of the Transport Department. 21. GC would continue to provide functional support as the project enters the implementation phase when closer ground level monitoring is needed. A technical services and supervision consultant (TSSC) will be hired to assist with technical design review, construction supervision, quality control, and monitoring of large terminal works under the project components. They will work together with the Divisional Offices (proposed to be designated as Project Implementing Units) to provide implementation and project management support in the execution of the civil works and installation of key equipment. . F. Project location and Salient physical characteristics relevant to the safeguard analysis (if known) The project will be implemented in north-east Indian state of Assam with terminal improvements at selected locations along the rivers Brahmaputra and Barak, though the final locations for all interventions have not been fully identified. The currently identified locations are in Guwahati, capital of the state, and at Majuli island, one of the world’s largest inhabited river islands. The locations in Guwahati are in the urban setting with the south Bank or GGG location being more modified, since it is contiguous with one of the main arterial roads of the city, than North Guwahati location. The Aphalamukh location on Majuli island is rural and relatively less affected by industrial/human activity. Other sub-projects under Component 3 are expected to be small scale investments in rural settings, the locations of which are not yet determined. In addition to development and upgrading of IWT terminals, other ancillary infrastructure such as access roads for last mile connectivity and vessel fleet improvements have been considered under the project. Assam with a total geographical area of 78,438 sq.km. is predominantly rural (98.4 % area). Accessible IWT transport is vital for the lives and livelihoods of char and riparian communities in Assam. The project will result in improved connectivity/ access to basic services such as health, employment and education for numerous villages and far off chars. The IWT development would enable access to services such as healthcare and education to riverine communities. The development will also facilitate opportunities for tourism, trade-related activities and increased social mobility of women (and other vulnerable groups such as children, differently abled, elderly and infirm) through a safe, reliable and socially inclusive IWT system. September 25, 2019 Page 9 of 19 The World Bank Assam Inland Water Transport Project (P157929) G. Environmental and Social Safeguards Specialists on the Team Mridula Singh, Social Specialist Gaurav D. Joshi, Environmental Specialist Leanne Farrell, Environmental Specialist Mohammad Yasin Noori, Social Specialist SAFEGUARD POLICIES THAT MIGHT APPLY Safeguard Policies Triggered? Explanation (Optional) This policy is triggered for the project as investments have the potential to create adverse impacts on the environment and people. The project has been assigned Category A due to the sensitive locations where project supported facilities with significant impacts could come up. In line with the requirements of the policy, environmental and social assessment has been undertaken to ensure that the anticipated impacts are appropriately managed. An Environmental Management Framework (EMF) and Social Management Framework (SMF) have been prepared to guide EIAs/SIAs to be undertaken in the future. For the currently, identified investments, an Environmental Assessment OP/BP 4.01 Yes Environmental and Social Impact Assessment has been undertaken by consultants not involved in the engineering designs and an Environmental Management Plan has been prepared for implementation. It includes measures commensurate with the anticipated impacts as well as monitoring and reporting arrangements. A budgetary allocation has been made for the same. It is expected that AIWTDS will undertake similar detailed assessment for subsequent phases as activities and locations get identified. A cumulative impacts assessment study draft is being revised to reflect comments provided on an earlier draft version. Performance Standards for Private Sector No Activities OP/BP 4.03 The majority of project investments will take place Natural Habitats OP/BP 4.04 Yes along the banks and islands of the Brahmaputra Feb 25, 2019 Page 10 of 19 The World Bank Assam Inland Water Transport Project (P157929) River, which is a massive braided river that bisects the state of Assam, ranging in width from 1km (at Guwahati) to over 10km. The river is also rich in aquatic biodiversity, including being a habitat for the national aquatic mammal of India, the Gangetic Dolphin. The EMF has identified the measures that would be taken to compliy with the requirements of the policy, including screening out ciritical habitats. The ESIA has undertaken detailed surveys for aquatic biodiversity and a full-fledged study on the Gangetic Dolphin is underway to cover all seasons. Measures identified for avoiding/reducing impacts on Natural Habitats are included in the EMP for Phase 1 activities. This policy is not expected to be triggered, as subprojects will be on or close to riverbanks, and will not involve any forestry activities. All investment Forests OP/BP 4.36 No locations will nonetheless be screened for any potential impacts on forests. If identified, the policy will be triggered, and impacts to forests will be avoided or mitigated in accordance with the policy. No pesticides will be procured under the project, nor Pest Management OP 4.09 No will project activities lead to an increase in the use of pesticides. The currently identified locations are all close to existing terminal facilities and no significant cultural properties have been noted to be affected adversely by the Phase 1 investments. Other candidate Physical Cultural Resources OP/BP 4.11 Yes locations include an important temple close to Umananda Ghat, which will be analyzed once the selection for Phase 2 is completed. In addition, chance-find procedures have been included in the EMF. This policy is triggered, as the project’s investment cuts across districts in Assam, which has a significant population of Scheduled Tribes (ST). For the currently identified investment, a Social Impact Assessment (SIA) and Indigenous People Indigenous Peoples OP/BP 4.10 Yes Development Plan (IPDP) have been prepared, cleared/ disclosed in-country on AIWDS website. The SIA) did not reveal direct impact on ST, the project will have some indirect impact on the tribal communities in the project influence areas, such as the Mishing tribe in Majuli Island who rely on the Feb 25, 2019 Page 11 of 19 The World Bank Assam Inland Water Transport Project (P157929) ferry services for daily commute to access market, work, medical facilities and educational institutions. As a part of the SIA, free, prior and informed consultations were organized with the ST in February 2019. Since all the designs for investments to be supported under the project have not yet been finalized, as Social Management Framework (SMF)- cum- Indigenous Peoples Development Framework (IPDF) has been prepared to guide the preparation of Social Impact Assessment (SIA) and Indigenous Peoples Development Plan (IPDP). This policy is triggered as construction of new terminals and upgradation of existing terminals to be financed under Component 3, could result in land acquisition & resettlement impacts. Since the specific alignments with detailed technical design for investment to be supported under the project have not yet been finalized, a Resettlement Policy Framework (RPF) has been prepared to guide the preparation of Resettlement Action Plan (RAP). Involuntary Resettlement OP/BP 4.12 Yes The three priority terminals, which are already identified, are located on government land. The information on the total number of affected people will be firmed up following the site-specific Social Impact Assessment. During the preparation of RPF-cum-IPDF and RAP- cum-IPDP, extensive stakeholder and public consultations were carried out. The feedback received has been incorporated in the final document and disclosed on the Bank’s website and in the AIWTDS website. The project is not building or rehabilitating any dam, Safety of Dams OP/BP 4.37 No does not depend on existing dams, and is not at potential threat from any existing dams. The project activities are being undertaken along the Brahmaputra and Barak Rivers which are both Projects on International Waterways Yes International Waterways. Riparian countries have OP/BP 7.50 been notified and Bank is following up with request for more information from Bangladesh. The project area does not include any disputed Projects in Disputed Areas OP/BP 7.60 No territories. Feb 25, 2019 Page 12 of 19 The World Bank Assam Inland Water Transport Project (P157929) KEY SAFEGUARD POLICY ISSUES AND THEIR MANAGEMENT A. Summary of Key Safeguard Issues 1. Describe any safeguard issues and impacts associated with the proposed project. Identify and describe any potential large scale, significant and/or irreversible impacts: Environmental: The project’s most significant environmental impacts are concentrated on the aquatic environment as project intends to minimize land take and use in-river facilities close to existing sites for development of jetties and other related infrastructure. The proposed activities could impact the aquatic biodiversity since in-water infrastructure may require disturbance to the flow and river bed. In addition, impacts could also arise from improper facilities being created – either vessels or terminal/jetties leading to pollution related issues. Construction period impacts include temporary pollution from work-sites and labour facilities, increased level of noise and dust, possibly higher risk of serious accidents given the work on water, removal of some trees in case new locations are used/designs need to be modified for meeting other criteria. Safety of workers and other users of the site (for instance where if terminal construction happens close to operating jetties) is also a concern. Since the project is incorporating ‘design with nature’ principles, less intrusion is expected into the natural regime of the river. It is further noted that inland water transport is among the least GHG-intensive modes of transport per capita and therefore any augmentation is likely to have global benefit, even if small. Irreversible impacts would occur where the new terminal facilities are created due to change in land-use, removal of vegetation, etc. Social: The most significant social impacts of the project pertain to the loss of land, structures and livelihood of the affected persons during construction/upgradation of the terminals. Other potential social safeguard issues include risks associated with labor influx and Gender Based Violence (GBV). The project activities are likely to engage some labors from outside the project’s area of influence. The assessment of three priority sites indicated low capacity of the host community to manage and absorb the incoming labor force, as Assam already deals with social conflicts due to cross border and interstate migration. Safety and security of the passengers’ particularly of women and children on board the ferries and at the terminals is another critical issue. Based on the risk assessment undertaken, Labor Influx risk mitigation Plan and GBV Action Plan have been developed as a part of the RAP-cum-IPDP for adaptive management and risks mitigation. The approved SMF include labor influx risk mitigation measures which will be followed for all investments. 2. Describe any potential indirect and/or long term impacts due to anticipated future activities in the project area: Environmental: Indirect impacts of the project on the environment could arise from the land-use change or required periodic maintenance dredging. The land-use change patterns could eventually create impacts due to higher urbanization / population in currently less connected areas like North Guwahati. No other significant long-term impacts are anticipated as the project activities are being undertaken as replacement/upgradation of existing facilities and not new / fresh areas. Social: The project will have a positive social impact in terms of improved access to basic amenities such as healthcare and education, particularly for communities residing in rural upstream areas of Assam. Gender informed terminal designs and ferries will facilitate the use of IWT by women and other marginalized groups including differently abled, elderly, and infirm. The project will enhance supply chain sustainability in remote and inaccessible riverine areas, providing economic opportunities for both men and women engaged in small-scaled enterprises and trade. 3. Describe any project alternatives (if relevant) considered to help avoid or minimize adverse impacts. Feb 25, 2019 Page 13 of 19 The World Bank Assam Inland Water Transport Project (P157929) Environmental: The project design has been actively considering environmental impacts of proposed options. For instance, in addition to locations, the technical options have been examined to arrive at the ones least impact in case of dredging technique and disposal of dredge material. Further, floating structures are proposed in place of conventional fixed structures to reduce the impacts further. Vessel specifications have been augmented to include items to reduce impact on water quality as well as aquatic biodiversity. Social: The location of the terminals has been determined after taking into account the minimum possible social impacts, especially in relation to land acquisition. Where ever possible design changes were made to minimize the physical displacements or loss of livelihoods. 4. Describe measures taken by the borrower to address safeguard policy issues. Provide an assessment of borrower capacity to plan and implement the measures described. Environmental and Social: The project preparation included EA/SA undertaken by consultants independent of the detailed design team. AIWTDS had this team undertake a screening and scoping exercise, followed by preparation of an Environmental Management Framework (EMF), Social Management Framework (SMF) and Environmental and Social Impact Assessment, including an Environmental Management Plan/Social Management Plan for the investments already identified. The requirements of environmental and social management have been included in the respective contract documents so that the project activities manage the impacts in line with Bank policies – OP4.01, OP4.04, OP4.10, OP4.11 and OP4.12. This is the first project being implemented by the AIWTDS that will need to comply with the Bank’s policies, which are new requirements, some of which are different from GoI/GoA stipulations. This requires building capacity in the staff of the AIWTDS while project preparation and implementation are underway. The AIWTDS has engaged various specialist consultant teams, including for EA/SA as mentioned previously, to support project preparation (through a General Consultant- GC) and implementation. In addition, Third Party Safeguards Monitoring is also included in the implementation phase. AIWTDS’s field offices will also have designated officials to monitor the implementation of project activities. Their capacity building is also included in line with ESIA findings. This level of capacity is sufficient for currently identified impacts and would need to be periodically confirmed as project implementation progresses. 5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people. During the project preparation, consultations were carried out with all significant stakeholder groups and project beneficiaries. Stakeholder mapping was carried out and the following stakeholder were identified under the project: project affected persons (direct and indirect), ferry users and operators (private and government owned), livelihood groups (MSME, traders, producers, etc.), local self-government representatives (Gaon burra, ward members, etc.), relevant government departments (Water Resource, PWD, Revenue, Fisheries, etc.) and local NGOs. During project preparation, detailed consultations with all relevant stakeholders including project affected persons (PAPs) were carried out in Majuli and Guwahati. Feedback obtained were incorporated in the draft framework (RPF- cum-IPDF) and RAP-cum-IPDP. Following the public consultations and approval, the revised social safeguard instruments have been disclosed in the Bank’s portal and in the AIWTDS - society’s website on March 15, 2019 and May 7, 2019 respectively. The EMF was disclosed on 15th March 2019 and the draft final ESIA was disclosed on 23rd May 2019. For continuous engagement with the community throughout the project cycle, various methods of citizen engagement including citizens’ charter and user satisfaction surveys have been adopted under the project. A Stakeholder Engagement Plan (SEP) outlining the tools and method for engagement has been prepared as part of the RAP-cum-IPDP. Feb 25, 2019 Page 14 of 19 The World Bank Assam Inland Water Transport Project (P157929) B. Disclosure Requirements OPS_EA_DISCLOSURE_TABLE Environmental Assessment/Audit/Management Plan/Other For category A projects, date of Date of receipt by the Bank Date of submission for disclosure distributing the Executive Summary of the EA to the Executive Directors 30-Apr-2019 23-May-2019 16-Aug-2019 "In country" Disclosure India 23-May-2019 Comments Disclosed Bank reviewed version on AIWTDS website. OPS_RA_D ISCLOSURE_T ABLE Resettlement Action Plan/Framework/Policy Process Date of receipt by the Bank Date of submission for disclosure 15-Mar-2019 07-May-2019 "In country" Disclosure OPS_I P_DIS CLOSURE_TAB LE Indigenous Peoples Development Plan/Framework Date of receipt by the Bank Date of submission for disclosure 15-Mar-2019 07-May-2019 "In country" Disclosure India 07-May-2019 Comments Feb 25, 2019 Page 15 of 19 The World Bank Assam Inland Water Transport Project (P157929) C. Compliance Monitoring Indicators at the Corporate Level (to be filled in when the ISDS is finalized by the project decision meeting) OPS_EA_COMP_TABLE OP/BP/GP 4.01 - Environment Assessment Does the project require a stand-alone EA (including EMP) report? Yes If yes, then did the Regional Environment Unit or Practice Manager (PM) review and approve the EA report? Yes Are the cost and the accountabilities for the EMP incorporated in the credit/loan? Yes OPS_ NH_COM P_TABLE OP/BP 4.04 - Natural Habitats Would the project result in any significant conversion or degradation of critical natural habitats? No If the project would result in significant conversion or degradation of other (non-critical) natural habitats, does the project include mitigation measures acceptable to the Bank? Yes OPS_ PCR_COM P_TABLE OP/BP 4.11 - Physical Cultural Resources Does the EA include adequate measures related to cultural property? Yes Does the credit/loan incorporate mechanisms to mitigate the potential adverse impacts on cultural property? Yes OPS_I P_COM P_TABLE OP/BP 4.10 - Indigenous Peoples Has a separate Indigenous Peoples Plan/Planning Framework (as appropriate) been prepared in consultation with affected Indigenous Peoples? Yes If yes, then did the Regional unit responsible for safeguards or Practice Manager review the plan? Yes If the whole project is designed to benefit IP, has the design been reviewed and approved by the Regional Social Development Unit or Practice Manager? NA OPS_IR_ COMP_TAB LE OP/BP 4.12 - Involuntary Resettlement Has a resettlement plan/abbreviated plan/policy framework/process framework (as appropriate) been prepared? Yes If yes, then did the Regional unit responsible for safeguards or Practice Manager review the plan? Yes Feb 25, 2019 Page 16 of 19 The World Bank Assam Inland Water Transport Project (P157929) OPS_ PIW_COMP_ TABLE OP 7.50 - Projects on International Waterways Have the other riparians been notified of the project? Yes If the project falls under one of the exceptions to the notification requirement, has this been cleared with the Legal Department, and the memo to the RVP prepared and sent? NA Has the RVP approved such an exception? NA OPS_ PDI_ COMP_TAB LE The World Bank Policy on Disclosure of Information Have relevant safeguard policies documents been sent to the World Bank for disclosure? Yes Have relevant documents been disclosed in-country in a public place in a form and language that are understandable and accessible to project-affected groups and local NGOs? Yes All Safeguard Policies Have satisfactory calendar, budget and clear institutional responsibilities been prepared for the implementation of measures related to safeguard policies? Yes Have costs related to safeguard policy measures been included in the project cost? Yes Does the Monitoring and Evaluation system of the project include the monitoring of safeguard impacts and measures related to safeguard policies? Yes Have satisfactory implementation arrangements been agreed with the borrower and the same been adequately reflected in the project legal documents? Yes CONTACT POINT World Bank Atul Agarwal Senior Transport Specialist Feb 25, 2019 Page 17 of 19 The World Bank Assam Inland Water Transport Project (P157929) Ninan Oommen Biju Sr Port Spec. Borrower/Client/Recipient India Bandana Preyashi Director (MI), DEA, Ministry of Finance bandana.preyashi@gov.in Implementing Agencies Transport Dept., Govt. of Assam, Dispur, Guwahati (Assam), India Virendra Mittal Secretary, Govt. of Assam dir.iwtds-as@gov.in FOR MORE INFORMATION CONTACT The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 473-1000 Web: http://www.worldbank.org/projects APPROVAL Atul Agarwal Task Team Leader(s): Ninan Oommen Biju Approved By Safeguards Advisor: Charles Ankisiba 27-Sep-2019 Practice Manager/Manager: Tesfamichael Nahusenay 27-Sep-2019 Country Director: Hisham A. Abdo Kahin 02-Oct-2019 Feb 25, 2019 Page 18 of 19 The World Bank Assam Inland Water Transport Project (P157929) Feb 25, 2019 Page 19 of 19