Government of Nepal Ministry of Urban Development (MoUD) Department of Local Infrastructure (DoLI) Provincial and Local Roads Improvement Program (P171836) (Phase 1) [Negotiated] ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) January 16, 2024 1|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN 1. The Government of Nepal (GoN) will implement the Provincial and Local Roads Improvement Program Phase- 1 of Series of Project [here in called ‘Project’)], through Department of Local Infrastructure (DoLI) under the Ministry of Urban Development (MoUD), and Participating Provinces, as set out in the Financing Agreement and Project Agreement. The International Development Association (Association or Bank), has agreed to provide financing (P171836) for the Project, as set out in the referred agreement(s). 2. Nepal (Recipient) and Participating Provinces (Project Implementing Entities or PIEs) shall ensure that the Project is carried out in accordance with the Environmental and Social Standards (ESSs) and this Environmental and Social Commitment Plan (ESCP), in a manner acceptable to the Association, in coordination with Participating Local Levels as appropriate. The ESCP is a part of the legal agreements. Unless otherwise defined in this ESCP, capitalized terms used in this ESCP have the meanings ascribed to them in the referred agreement(s). 3. Without limitation to the foregoing, this ESCP sets out material measures and actions that the Recipient and/or PIEs shall carry out or cause to be carried out, including, as applicable, the timeframes of the actions and measures, institutional, staffing, training, monitoring and reporting arrangements, and grievance management. The ESCP also sets out the environmental and social (E&S) instruments that shall be adopted and implemented under the Project, all of which shall be subject to prior consultation and disclosure, consistent with the ESS, and in form and substance, and in a manner acceptable to the Association. Once adopted, said E&S instruments may be revised from time to time with prior written agreement by the Association. 4. As agreed by the Association and the Recipient and PIEs, this ESCP will be revised from time to time if necessary, during Project implementation, to reflect adaptive management of Project changes and unforeseen circumstances or in response to Project performance. In such circumstances, the Recipient through Department of Local Infrastructure, Ministry of Urban Development and the PIEs, and the Association agree to update the ESCP to reflect these changes through an exchange of letters signed between the Association and the Recipient [name position of designated official, e.g. minister, director] of DOLI, MOUD and the PIEs. The Recipient shall promptly disclose the updated ESCP. 2|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – Provincial and Local Roads Improvement Program (P171836) MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY MONITORING AND REPORTING A REGULAR REPORTING Submit quarterly reports to the Bank every 3 CPCU, PPMU months throughout the Project Prepare and submit to the Bank regular monitoring reports on the environmental, social, implementation, commencing after the health and safety (ESHS) performance of the Project, including but not limited to the Effective Date. Submit each report to the Bank implementation of the ESCP, status of preparation and implementation of E&S no later than 45 days after the end of each instruments required under the ESCP, stakeholder engagement activities, and calendar quarter. functioning of the grievance mechanism(s). B INCIDENTS AND ACCIDENTS Notify the Bank no later than 48 hours after CPCU, PPMU, IDO, Promptly notify the Bank of any incident or accident related to the Project which has, or learning of the incident or accident. LLTU is likely to have, a significant adverse effect on the environment, the affected communities, the public or workers, including, inter alia, cases of sexual exploitation and A preliminary report on action taken will be abuse (SEA), sexual harassment (SH), and accidents that result in death, serious or provided within 7 days. Subsequently, a multiple injury. For all incidents except (SEA/SH) related, provide sufficient detail detailed report will be provided within 30 days regarding the scope, severity, and possible causes of the incident or accident, indicating after learning of the incident or accident. immediate measures taken or that are planned to be taken to address it, and any information provided by any contractor and/or supervising firm, as appropriate. Subsequently, at the Bank’s request, prepare a report on the incident or accident and propose any measures to address it and prevent its recurrence. For SEA/SH incidents related to the Project, provide basic facts such as the age, sex, type of alleged SEA/SH, if the alleged perpetrator was attached to the project and whether the survivor was referred to GBV support services, with no specific detail information that would reveal the identity of the survivor. All SEA/SH incident reports will be anonymized to the extent possible. C CONTRACTORS’ MONTHLY REPORTS Require contractors and supervising firms to provide monthly monitoring reports on ESHS performance in accordance with the metrics specified in the respective bidding Submit the monthly reports to the Bank upon LLTU, IDO, PPMU, documents and contracts. request as annexes to the reports to be CPCU submitted under action A above. Submit such reports to the Bank. CPCU ESS 1: ASSESSMENT AND MANAGEMENT OF ENVIRONMENTAL AND SOCIAL RISKS AND IMPACTS 3|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – Provincial and Local Roads Improvement Program (P171836) MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY 1.1 ORGANIZATIONAL STRUCTURE (i)Establish and maintain a CPCU as set out in CPCU, PPMU, IDO the financing agreement. One Environmental (i) Establish and maintain a CPCU with qualified Environmental Expert and a Social Expert and one Social Development Expert will Development Expert and resources to support the management of ESHS risks and be hired by CPCU prior to signing of financing impacts of the Project, agreement. Gender and GBV specialist will be hired at the CPCU, as necessary. (ii) Establish and maintain PPMUs and hire one Environmental Officer and One Social Officer at PPMUs prior to signing of financing agreement. (ii) Establish and maintain in the PPMUs qualified Environmental Officer and a Social (iii) Hire Social Mobilisers and any additional Development Officer and resources to support the management of ESHS risks and E&S Specialists at IDOs as required. impacts of the Project at the provincial and local levels Recruit in IDOs, social mobilisers and additional environmental and social specialists/ The organization structure, including the officers as required during project implementation. environmental and social specialists/ officers, shall be maintained throughout Project implementation. 1.2 ENVIRONMENTAL AND SOCIAL INSTRUMENTS 1. The revised ESMF is prepared and disclosed. CPCU, PPMU 1. Prepare, adopt and implement an Environmental and Social Management Framework (ESMF) for the Project, consistent with the relevant ESSs. 2. Draft ESMF will be consulted upon, approved and adopted prior to negotiation, and thereafter implement the ESMF throughout 2. Screen the proposed sub-projects under the Project in accordance with the Project Project implementation. ESMF and, where relevant, prepare corresponding Environmental and Social Impact Assessment (ESIA), and/or Environmental and Social Management Plan (ESMP), as set CPCU, PPMU, IDO, out in the ESMF. LLTU 4|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – Provincial and Local Roads Improvement Program (P171836) MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY 3. Cause sub-project entities to adopt and implement site-specific ESMPs, as set out in 3. For each subproject, adopt the ESMP before the ESMF. The proposed activities described in the exclusion list set out in the ESMF shall launching the bidding process for the respective be ineligible to receive financing under the Project. subproject and thereafter implement the respective ESMP throughout Project 4.Cause Contractors to prepare and implement Contractor-ESMPs (C-ESMPs). The cost implementation. for additional mitigation measures identified during the field verification will be covered by the provisional sum in the contract for the sub-projects proposed for the first-year investment. 4. C-ESMPs prepared by the contractors prior to site mobilization; and reviewed and cleared by PPMU, implement throughout contract period. 1.3 MANAGEMENT OF CONTRACTORS Incorporate the relevant aspects of the ESCP, including, inter alia, the relevant As part of preparation of procurement PPMU, IDO, LLTU subproject ESMPs and other E&S instruments, the Labor Management Procedures, and documents and respective contracts. code of conduct, into the ESHS specifications of the procurement documents and contracts with contractors and supervising firms. Supervise contractors throughout Project implementation. CPCU, PPMU, IDO, LLTU 1.4 PERMIT, CONSENTS AND AUTHORIZATIONS Obtain required permits, consents, licenses, no- CPCU, PPMU, IDO, As appropriate, obtain required permits, consents, licenses, no-objections, and objections, or authorization, prior to carrying LLTU authorizations, including tree -felling permit, environmental licenses and work permits out any subproject or subproject activity, and that are applicable to the subproject from relevant national and/or local authorities, and comply with the conditions thereunder comply with the conditions thereunder. throughout Project implementation. 5|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – Provincial and Local Roads Improvement Program (P171836) MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY 1.5 CONTINGENT [EMERGENCY] [EARLY] RESPONSE FINANCING The adoption of the CERC manual and, if MOF, CPCU applicable, other instruments, as relevant in a) Ensure that the CERC Manual as specified in the Financing Agreement includes a form and substance acceptable to the Bank is a description of the ESHS assessment and management arrangements including, any CERC- withdrawal condition under Section [XX] of ESMF/ESMF Addendum that will be included or referred to in the CERC Manual for the Schedule 2 of the financing agreement for the implementation of component 5 CERC, in accordance with the ESSs. Project. b) Adopt any environmental and social (E&S) instruments which may be required for b) Adopt any required E&S instrument and activities under CERC component 5 of the Project, in accordance with the CERC Manual include it as part of the respective bidding and, if applicable, CERC-ESMF or CERC-ESMF Addendum and the ESSs, and thereafter process, if applicable, and in any case, before implement the measures and actions required under said E&S instruments, within the the carrying out of the relevant Project timeframes specified in said E&S instruments. activities for which the E&S instrument is required. Implement the E&S instruments in accordance with their terms, throughout Project implementation. 1.6 Undertake periodic assessments of implementation of ESMF, based on a comprehensive During implementation of first year investment, CPCU methodology to be developed under the Project, and update/revise the frameworks. mid-term and end of the project Updated ESMF will be further consulted, redisclosed and will be cleared by the Bank. The learnings and results will inform the design of the subsequent phases of the PLRIP. ESS 2: LABOR AND WORKING CONDITIONS 2.1 LABOR MANAGEMENT PROCEDURES CPCU, PPMU, IDO, LLTU, Adopt and implement the Labor Management Procedures (LMP) for the Project, Draft LMP will be consulted, approved, including, inter alia, provisions on working conditions, management of workers adopted, prior to negotiation, and thereafter relationships, occupational health and safety (OHS) (including personal protective implement the LMP throughout Project equipment, and emergency preparedness and response), code of conduct (including implementation. relating to SEA and SH), forced labor, child labor, grievance arrangements for Project workers, and applicable requirements for contractors, subcontractors, and supervising firms. 2.2 GRIEVANCE MECHANISM FOR PROJECT WORKERS Establish grievance mechanism prior to engaging project workers and thereafter CPCU, PPMU, IDO, Establish and operate a grievance mechanism for Project workers, as described in the maintain and operate it throughout Project LLTU LMP and consistent with ESS2. implementation. ESS 3: RESOURCE EFFICIENCY AND POLLUTION PREVENTION AND MANAGEMENT 6|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – Provincial and Local Roads Improvement Program (P171836) MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY 3.1 WASTE MANAGEMENT PLAN Prior to launching the bidding process and PPMU, IDO, LLTU Measures to effectively manage wastes and hazardous materials will be identified and throughout Project implementation. included as part of the specific ESIAs/ESMPs to be prepared under action 1.2, managed as per the minimum standards stipulated in the Project ESMF consistent with ESS3. 3.2 RESOURCE EFFICIENCY AND POLLUTION PREVENTION AND MANAGEMENT Prior to launching the bidding process and PPMU, IDO, LLTU Feasible measures (financial and technical) for improving efficiency in consumption of throughout Project implementation. energy and water, as well as other resources and material inputs will be identified through the specific ESIAs, ESMPs to be prepared under action 1.2. ESS 4: COMMUNITY HEALTH AND SAFETY 4.1 TRAFFIC AND ROAD SAFETY After contract signing with selected contractors PPMU, IDO, LLTU Incorporate measures to manage traffic and road safety risks in C-ESMPs as required in and thereafter implement throughout the Subproject ESMP to be prepared under action 1.3 above. subproject implementation. 4.2 COMMUNITY HEALTH AND SAFETY After contract signing with selected contractors CPCU/PPMU, IDO, LLTU Assess and manage specific risks and impacts to the community arising from Project and thereafter implement throughout activities, including, inter alia, new construction e.g., behavior of Project workers, risks of subproject implementation. labor influx, response to emergency situations, and include mitigation measures in the C- ESMPs to be prepared in accordance with the subproject specific ESMP. 4.3 SEA AND SH RISKS SEA/SH Action Plan prepared and disclosed CPCU, PPMU, IDO, Adopt and implement a SEA/SH Action Plan for the Project to assess and manage the during appraisal, and thereafter implement the LLTU, risks of SEA and SH. SEA/SH Action Plan throughout Project and subproject implementation. 4.4 EMERGENCY RESPONSE MEASURES: Prepare, adopt, and implement Emergency Prior to issuance of bids for corresponding PPMU, IDO, LLTU Response Plans to address emergency events, if recommended by subproject specific subproject/activities, and thereafter implement E&S assessment/ ESIA, as part of subproject ESMPs for implementation. the measures throughout the subproject implementation. 4.5 SECURITY MANAGEMENT Prior to engaging security personnel, and CPCU, PPMU, IDO, Assess and implement measures to manage the security risks of the Project, including issuance of bids for corresponding LLTU, the risks of engaging security personnel to safeguard project workers, sites, assets, and subproject/activities. Once SRA is prepared and activities, as needed, a Security Risk Assessment (SRA) will be prepared prior to engaging mitigation measures included as part of the security personnel, and, as required, a Security Management Plan (SMP) shall be site-specific ESMP implement the measures included as part of the ESMP. throughout subproject implementation. ESS 5: LAND ACQUISITION, RESTRICTIONS ON LAND USE AND INVOLUNTARY RESETTLEMENT 7|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – Provincial and Local Roads Improvement Program (P171836) MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY 5.1 RESETTLEMENT POLICY FRAMEWORK Draft RPF will be consulted, revised, re- disclosed and adopted within two (2) months CPCU, PPMU, IDO, Adopt and implement a Resettlement Policy Framework (RPF) for the Project, consistent after the negotiations and thereafter LLTU with ESS5. implement the RPF throughout Project implementation. 5.2 RESETTLEMENT ACTION PLANS CPCU, PPMU, IDO, LLTU Prepare, adopt and implement a resettlement action plan (RAP) for each Prepare, adopt RAPs for each subproject prior activity/subproject under the Project for which the RPF requires such RAP, as set out in to invitation of bids. Costs for implementation the RPF, and consistent with ESS5. All costs for implementation of RAP will be met of RAP shall be set aside each fiscal year as part through counterpart funding, of Annual Work Plan and Budget Allocations, and thereafter maintained throughout Project implementation. The Project shall not take possession of acquired land and/or related assets until compensation and resettlement assistance have been paid to project affected persons. 5.3 VOLUNTARY LAND DONATION PROTOCOL Prior to acquisition of voluntarily donated land, CPCU/PPMU/ IDO/ acquire, free from coercion, a signed Statement LLTU Adopt and implement VLD Protocol as part of the RPF, to ensure that land donated Letter for Land Donation from each voluntary voluntarily is acquired consistent with ESS 5. VLD Agreements shall be acquired and land donor, and ensure that all transaction verified concurrently by Third Party Monitor costs associated with the donation, as well as any monetary or non-monetary benefits or incentives have been paid to the voluntary land doner as a condition for donation before acquiring donated land. 5.4 THIRD PARTY VERIFICATION FOR VLD VLD Agreements and compliance with the VLD CPCU/PPMU/IDO/LLTU 1. Ensure that Third Party Verification for VLD is carried out in accordance with terms of Protocol shall be monitored and verified by the reference acceptable to the Bank, and that a qualified Third-Party Monitor is hired. Third-Party Monitor concurrently with any land acquired through VLD. 8|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – Provincial and Local Roads Improvement Program (P171836) MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY 2. Once hired, cause Third Party Monitor to undertake concurrent Third-Party Verification of every VLD agreement, consistent with the RPF and VLD Protocol. 3. The borrower shall rely on the Third Party to review any land acquisition including VLD undertaken in anticipation of the project prior to approval the project RPF and implement any corrective actions as needed. 5.5 GRIEVANCE MECHANISM GRM established before project effectiveness. CPCU/PPMU/IDO/LLTU Establish, publicize, maintain, and operate an accessible grievance redress mechanism as mentioned in the RPF and SEP to receive and facilitate resolution of resettlement and land acquisition related grievances. ESS 6: BIODIVERSITY CONSERVATION AND SUSTAINABLE MANAGEMENT OF LIVING NATURAL RESOURCES 6.1 BIODIVERSITY RISKS AND IMPACTS CPCU, PPMU, IDO, Screen, identify and manage risks and impacts on biodiversity as per procedures Prior to launching the bidding process and LLTU presented in the ESMF, avoidance measures are to be applied via respective design maintained during construction. where possible and all ESIAs/ESMPs/ Biodiversity Management Plan (BMP) to be prepared under action 1.2 will include measures in line with the management of risks Applicable throughout Project implementation. and impacts to biodiversity presented in the ESMF consistent with ESS6. ESS 7: INDIGENOUS PEOPLES/SUB-SAHARAN AFRICAN HISTORICALLY UNDERSERVED TRADITIONAL LOCAL COMMUNITIES 7.1 INDIGENOUS PEOPLES PLANNING FRAMEWORK CPCU, PPMU Draft IPPF will be consulted, revised, re- Prepare, adopt and implement an Indigenous Peoples Planning Framework (IPPF) as part disclosed and adopted prior to negotiation and of the draft ESMF for the Project, consistent with ESS7 thereafter implement the IPPF throughout Project implementation. 7.2 INDIGENOUS PEOPLES PLAN Prior to commencement of works. CPCU, PPMU, IDO, Once adopted, implement the respective IPP LLTU Prepare, adopt and implement an Indigenous Peoples Plan (IPP)for subprojects under throughout Project implementation. the Project for which the IPPF requires such IPP, as set out in the IPPF, and consistent with ESS7. ESS 8: CULTURAL HERITAGE 8.1 CULTURAL HERITAGE RISKS AND IMPACTS Prepare and adopt the CHMP prior to PPMU, IDO, LLTU commencement work, and thereafter Prepare, adopt and implement a Cultural Heritage Management Plan (CHMP) as part of implement the CHMP throughout subproject the subproject ESMP, in accordance with the guidelines of the ESMF/ESIA prepared for implementation. the Project, and consistent with ESS8. 9|Page ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – Provincial and Local Roads Improvement Program (P171836) MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY 8.2 CHANCEFINDS Before implementation of the subprojects CPCU, PPMU, IDO, Describe and implement the chance finds procedures, as part of the ESMF and describe the chance find procedures in the LLTU subproject ESMP. subproject ESMP. Implement the procedures throughout subproject implementation. ESS 9: FINANCIAL INTERMEDIARIES [This standard is only relevant for Projects involving Financial Intermediaries (FIs).] 9.1 Not relevant. No financial intermediary is involved. ESS 10: STAKEHOLDER ENGAGEMENT AND INFORMATION DISCLOSURE 10.1 STAKEHOLDER ENGAGEMENT PLAN PREPARATION AND IMPLEMENTATION CPCU, PPMUIDO and Prepare, consult, disclose and adopt SEP prior LLTU Prepare, adopt and implement a Stakeholder Engagement Plan (SEP) for the Project, to negotiations, and thereafter implement the consistent with ESS10, which shall include measures to, inter alia, provide stakeholders SEP throughout Project implementation. with timely, relevant, understandable and accessible information, and consult with them in a culturally appropriate manner, which is free of manipulation, interference, coercion, discrimination and intimidation, and reporting back to stakeholders on SEP during implementation. Review and update SEP, as and when required. 10.2 PROJECT GRIEVANCE MECHANISM Establish the grievance mechanism through CPCU, PPMU, IDO and Establish, publicize, maintain, and operate an accessible grievance mechanism as constitution of members of GRCs and LLTU mentioned in SEP, to receive and facilitate resolution of concerns and grievances in notification, written procedure prior to Project relation to the project, promptly and effectively, in a transparent manner that is effectiveness and thereafter maintain and culturally appropriate and readily accessible to all Project-affected parties, at no cost and operate the mechanism throughout Project without retribution, including concerns and grievances filed anonymously, in a manner implementation. consistent with ESS10. The grievance mechanism shall be equipped to receive, register, and facilitate the resolution of SEA/SH complaints, including through the referral of survivors to relevant gender-based violence service providers, all in a safe, confidential, and survivor-centered manner. A GBV service provider will be procured to directly manage, facilitate, and provide support services. CAPACITY SUPPORT CS1 Based on the E&S Capacity Assessment, the following types of training (shall be CPCU, PPMU, IDO, conducted) Consultants 10 | P a g e ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN (ESCP) – Provincial and Local Roads Improvement Program (P171836) MATERIAL MEASURES AND ACTIONS TIMEFRAME RESPONSIBLE ENTITY Training to be provided and targeted groups for example, training may be required for [e.g., CPCU, PPMU, IDO, LLTU staff] on: Within 1 month of Project effectiveness and repeated as needed. • ESMF, RPF, IPPF, LMP, SEP • National requirements (EIA/IEE/BES) • Environmental and social risks and impacts monitoring. Throughout Project Implementation • Record-keeping, documentation and reporting, including on the GRM. • Stakeholder mapping and engagement • Specific aspects of environmental and social assessment in road projects • GBV/SEA/SH and gender • Emergency preparedness and response • Community health and safety. CS2 Training for Contractors and labors on occupational health and safety including on emergency prevention and preparedness and response arrangements to emergency situations. CPCU, PPMU, IDO, Consultants (i) Occupational health and safety (OHS); At contractor mobilization and repeated during (ii) Labor management procedures (LMP); Project implementation as needed. (iii) Emergency prevention and preparedness and response arrangements to emergency situations; and (iv) Prevention of gender-based violence and sexual exploitation and abuse, sexual harassment (v) Chance find procedures for archaeological asset 11 | P a g e