The World Bank Chattogram Water Supply Improvement Project (P176429) Appraisal Environmental and Social Review Summary Appraisal Stage (ESRS Appraisal Stage) For Official Use Only Date Prepared/Updated: 02/21/2024 | Report No: ESRSA03312 Mar 21, 2024 Page 1 of 13 The World Bank Chattogram Water Supply Improvement Project (P176429) I. BASIC INFORMATION A. Basic Operation Data Operation ID Product Operation Acronym Approval Fiscal Year P176429 Investment Project Financing (IPF) CWSIP 2025 Operation Name Chattogram Water Supply Improvement Project Country/Region Code Beneficiary country/countries Region Practice Area (Lead) (borrower, recipient) Bangladesh Bangladesh SOUTH ASIA Water Borrower(s) Implementing Agency(ies) Estimated Appraisal Date Estimated Board Date People's Republic of Chattogram Water Supply and 11-Apr-2024 18-Jul-2024 Bangladesh Sewerage Authority Estimated Decision Total Project Cost For Official Use Only Review Date 14-Dec-2023 346,000,000.00 Proposed Development Objective The Project Development Objectives (PDOs) are to (i) increase access to safe and reliable water supply in Chattogram; and (ii) improve operational performance and financial sustainability of CWASA. B. Is the operation being prepared in a Situation of Urgent Need of Assistance or Capacity Constraints, as per Bank IPF Policy, para. 12? No C. Summary Description of Proposed Project Activities [Description imported from the PAD Data Sheet in the Portal providing information about the key aspects and components/sub-components of the project] The project will support the Government of Bangladesh in achieving the SDG Goal 6 and advance the utility reform agenda ensuring long-term sustainability of Water Supply and Sanitation (WSS) service provision in Chattogram. The project builds on the achievements of the previous Bank-funded Chittagong Water Supply Improvement and Sanitation Project (CWSISP) that closed on December 31, 2020 by financing investment in infrastructure and by supporting institutional strengthening. The proposed project will include: (a) expansion of the water distribution system, following Mar 21, 2024 Page 2 of 13 The World Bank Chattogram Water Supply Improvement Project (P176429) the District Metered Area (DMA) concept to enable efficient, reliable and equitable water supply to all customers within the utility’s service area; (b) expansion of water supply and non-network sanitation services in Low-income Communities (LIC); and (c) support to strengthen the Chattogram Water Supply and Sewerage Authority's (CWASA) utility systems, financial performance and creditworthiness including tariff roadmap, and building CWASA’s capacity for planning, delivering, and managing WSS services. The proposed project provides emphasis on improving service delivery and institutional sustainability while scaling up access. D. Environmental and Social Overview D.1 Overview of Environmental and Social Project Settings [Description of key features relevant to the operation’s environmental and social risks and opportunities (e.g., whether the project is nationwide or regional in scope, urban/rural, in an FCV context, presence of Indigenous Peoples or other minorities, involves associated facilities, high-biodiversity settings, etc.) – Max. character limit 10,000] As a sequel to Phase-I of the project, the Chattogram Water Supply Improvement Project (CWSIP) is proposed to extend access to safe water supply, invest in developing resilience against natural disasters, and to support the operational performance of Chattogram Water and Sanitation Authority (CWASA). The proposed project is located in 23 of the 41 Wards in Chattogram City. Chattogram is a major coastal city in southeastern Bangladesh and serves as the country's second-largest city. It plays a crucial role in the nation's economy due to its strategic location by the Bay of Bengal and its hosting of the busiest seaport in Bangladesh - the Port of Chattogram. This port is pivotal for international trade, handling over 90% of Bangladesh's import-export activities. As a For Official Use Only center for industrial and commercial activities in Bangladesh Chattogram hosts a wide range of industries, including textiles and garments (which are the backbone of Bangladesh's economy), shipbuilding, steel, chemicals, pharmaceuticals, and fisheries. The city's economic growth is significantly bolstered by its port activities, including shipping, logistics, and trade. Despite its economic importance, Chattogram faces several social challenges, including poverty, urban congestion, environmental degradation, and the impacts of climate change, such as cyclones and flooding.As per the United Nations population projections, the population in Chattogram Metropolitan Area (CMA) in 2024 is approximately 5.51 million people (50.2% males and 49.8% females), an increase of 2.49% from the previous year. There are over 1000 slums within the CMA limits. It is estimated that together these slums have over 560,000 households. At an average household size of 4.92 persons per household, more than 50% of the Chattogram city’s population reside in slums. Less than 1% of the city’s population belong to indigenous peoples and other ethnic minority groups. The majority of the city’s population, especially in slum areas, depend on shallow tube wells for drinking water with its inherent risks to public health. No new water production is proposed under this project as treated water is supplied from existing surface water treatment plants (SWTPs) at Modhunaghat, Mohara and Karnaphuli. The plants draw water from the Karnaphuli and Halda Rivers, both located in south-eastern Bangladesh and hosting important aquatic life including Ganges river dolphins in the Karnaphuli. The Halda draws from uphill streams of the Chittagong Hill tracks, providing water and irrigation across the Halda basin, and finally discharging into the Karnaphuli river. The Chattogram city also has patches of urban forest. Mar 21, 2024 Page 3 of 13 The World Bank Chattogram Water Supply Improvement Project (P176429) The footprint of activities is in built-up brownfield sites, urban, populated and largely contained within the CMA. Most houses in the area serve mixed purposes as people reside and operate small/medium sized enterprises in the same living units. In parts of the city, errand traders and vendors conduct business in the open, makeshift shelters, sidewalks. This is characteristic of the unplanned neighborhoods where streets are narrow with clusters of small shops. The construction of the distribution networks will occur along existing road networks and alleys with no need for land acquisition. Nonetheless, construction works may restrict access to homes and disrupt economic activities. Digging across some roads may cause traffic congestion and diversion with inconveniences for people during construction activities. These impacts are expected to be temporary lasting the construction period. Based on experiences from CWSISP-I, works under this project will be scheduled to avoid and/or minimize displacement and disruption of income generating activities. Where unavoidable, CWASA will implement measures to mitigate the adverse impacts of displacement. Ahead of construction, CWASA will consult local communities and affected persons, disclose potential adverse impacts of projects, and discuss measures for addressing risks. In the case of errand traders and vendors, the authority will identify vacant spaces in the vicinities for temporary relocation and serve advance notification to enable them to relocate for the ensuing construction works. As in the case of CWSISP-I, traders will be allowed to return to the previous spots when construction is complete. D.2 Overview of Borrower’s Institutional Capacity for Managing Environmental and Social Risks and Impacts [Description of Borrower’s capacity (i.e., prior performance under the Safeguard Policies or ESF, experience applying E&S policies of IFIs, Environmental and social unit/staff already in place) and willingness to manage risks and impacts and of For Official Use Only provisions planned or required to have capabilities in place, along with the needs for enhanced support to the Borrower – Max. character limit 10,000] The proposed project will be implemented by the Chattogram Water Supply and Sewerage Authority (CWASA), a government agency with familiarity and experience in implementing World Bank-financed projects in the water and sanitation sector. Phase-I of the project – CWSISP – was implemented by CWASA with satisfactory performance in managing the environmental and social impacts of the project. At project closure, safeguards performance on CWSISP was rated satisfactory, reflecting the existing capacity and commitment of CWASA to address environmental and social impacts associated with projects of this nature. Key staff of CWASA who held oversight responsibilities on CWSISP (e.g. Chemists) remain in post and are currently supporting CWASA in project preparation including on environmental and social issues. Despite this relative project experience, the requirements and full scope of the Bank’s Environmental and Social Framework (ESF) and relevant Environmental and Social Standards are new to the staff, and suggest the need for upfront technical support from the Bank and experienced E&S consultants to enable CWASA operationalize the ESF as the guiding framework for managing social and environmental impacts of the proposed investments. As part of the implementation arrangements, CWASA will set up a Project Management Unit (PMU) early in the project implementation phase with adequate staffing to manage the various aspects of the project. To meet the existing E&S capacity constraint, CWASA has committed to hiring one environmental and one social safeguards specialist on full time basis in the PMU and keep them in place till project completion using, if required, resources made available through Component 4 of the Project. Where required, the Bank will provide orientation/training on the ESF to the E&S specialists and other PMU & CWASA staff as the project is prepared and implemented. Mar 21, 2024 Page 4 of 13 The World Bank Chattogram Water Supply Improvement Project (P176429) An Environmental and Social Commitment Plan (ESCP) and other relevant management plans are already drafted with commitments, procedures and responsibilities for managing environmental and social impacts of the project. The staffing requirements to ensure compliance to the relevant ESSs throughout the project is outlined in the ESCP. CWASA maintains two zonal offices in Chattogram. These offices provide day-to-day service delivery to the communities and will be leveraged to support information disclosure and consultation activities under this project. II. SUMMARY OF ENVIRONMENTAL AND SOCIAL (ES) RISKS AND IMPACTS A. Environmental and Social Risk Classification (ESRC) Substantial A.1 Environmental Risk Rating Moderate [Summary of key factors contributing to risk rating, in accordance with the ES Directive and the Technical Note on Screening and Risk Classification under the ESF – Max. character limit 4,000] The environmental risk rating remains 'moderate', which was proposed at the concept stage. This is based on the nature of physical works (water supply pipe laying and installation of non-network sanitation management services for LICs facilities), which will be in built-up brownfield sites. No new water production is proposed in this project. The risk and impact screening data for the project show that the environmental and social impacts and risks are predictable and measures to manage these have been planned; which will be implemented as per the proposed ESMP. As noted above, the implementing agency is familiar with the nature of physical works involved in the project and are expected to draw from past experiences in managing risks associated with the project. The main For Official Use Only environmental risks are expected to materialize during construction phase, and include noise and dust pollution, dumping and disposal of excavated materials, traffic congestion, as well as concerns for health and safety of workers and communities. Where feasible, trenchless and pipe bursting technology will be considered to minimize the extent of excavations and trenching. Some of the old existing water lines are made of asbestos cement materials, and will be left in the ground. Where these are removed, contractors will ensure careful handling and safe disposal of excavated materials. During operation phase, main risks will be community and worker health & safety issues as well as some solid and liquid wastes disposal. In line with the relevant World Bank Environmental and Social Standards, two Environmental and Social Impact Assessment (ESIA) documents have been drafted by the implementing agency, one for water supply and management section and another for non-network sanitation management services for assessing and managing environmental and social risks during construction activities. These instruments will be finalized before implementation starts. It is expected that successful implementation of this project will have major positive environmental impacts as the reduction in leakages will improve overall supply efficiency and reduce/delay the need for further water abstractions (from rivers and groundwater). Some greenhouse gas emissions savings are also expected in the long-run due to energy savings and more efficient use of resources. A.2 Social Risk Rating Substantial [Summary of key factors contributing to risk rating, in accordance with the ES Directive and the Technical Note on Screening and Risk Classification under the ESF – Max. character limit 4,000] At the PCN stage, the social risks of the project is was rated Substantial. To understand the nature and significance of the E&S risks, CWASA commissioned two ESIA studies – one for the sanitation component, and the other for the water supply component of the Project – during the preparation of the Project. These instruments will be finalized before implementation starts. The preliminary findings of the ESIA studies indicate that the key social risks of the Mar 21, 2024 Page 5 of 13 The World Bank Chattogram Water Supply Improvement Project (P176429) Project to be the following - (i) potential economic displacement and disruption of other livelihood activities that take place on or alongside pavements and the Right of Way (ROW) for water transmission and distribution lines (approximately 250 PAPs); (ii) limited in-situ displacement of informal settlers (+/- 20 households) on parcels of land owned by CWASA or other Government Departments, that might be required for construction and operation of water reservoir facilities; and (iii) the restriction of access to homes businesses and common property resources during construction. Other social issues include community health and safety risks, traffic safety and congestion and exclusion of the poor and marginalized households from accessing project benefits due to tariffs and affordability. Therefore, at appraisal the social risk rating of the Project is retained as ‘Substantial’. The Project will be able to manage these risks through appropriate mitigation measures that will be outlined in the Environment and Social Management Plans (ESMPs) that are a part of the recommendations in the ESIAs. The ESMPs will be part of the bidding documents with requirements for contractors to plan and implement Contractor Environmental and Social Management Plans (C-ESMPs). The cost of ESMP implementation will be included as a separate BOQ list in the contract documents. CWASA has also prepared a detailed Stakeholder Engagement Plan (SEP) and Labor Management Plan (LMP). A Resettlement Policy Framework (RPF) is also being prepared as a part of the ESIA study for the water supply component of the project. The RPF will include an entitlement matrix for project-affected households (PAHs) and will outline procedures for the preparation and implementation of site-specific Resettlement Action Plans (RAPs) or Livelihood Restoration Plans (LRPs) – depending on the nature and scale of impacts - when designs are complete. In addition, Sexual Exploitation and Abuse and Sexual Harassment (SEA/SH) Prevention and Response measures will be incorporated into bidding documents with mandates and requirements to institute and monitor code of conduct for workers and provide remedies for potential SEA/SH issues. CWASA is committed to For Official Use Only putting in place the appropriate institutional arrangements to manage the E&S risks and impacts of the Project and these have also been described in detail in the ESCP. [Summary of key factors contributing to risk rating. This attribute is only for the internal version of the download document and not a part of the disclosable version – Max. character limit 8,000] B. Environment and Social Standards (ESS) that Apply to the Activities Being Considered B.1 Relevance of Environmental and Social Standards ESS1 - Assessment and Management of Environmental and Social Risks and Impacts Relevant [Explanation - Max. character limit 10,000] Given the scope of work defined in the PAD, the project is expected to pose some environmental and social risks and impacts. Key environmental risks and impacts include noise and dust pollution, dumping and disposal of excavated materials, traffic congestion, as well as concerns for health and safety of workers and communities. It should be noted that no new water production is proposed in this project. Distribution networks will tap into existing SWTPs at Modhunaghat, Mohara and Karnaphuli; thus reducing the need for exploring different water sources. On social risks and impacts, the proposed activities may result in displacement of non-titleholders and informal occupiers from parcels of land owned by CWASA or other Government Departments and disruption of income generating activities during the construction phase. Other social concerns include issues of equitable access to potable water for unserved and underserved low income populations in the city as well as the potential risk of SEA/SH which may arise from labor Mar 21, 2024 Page 6 of 13 The World Bank Chattogram Water Supply Improvement Project (P176429) influx. Low income and vulnerable households, typically urban poor households operating table-top business along the streets, may not be able to access WSS services provided by CWASA if tariffs are high. Issues about tariffs and access will be included in a tariff review study to inform cost recovery. Under CWSISP-I, CWASA piloted a community- managed water supply system to extend access to poor urban households. The effectiveness of this model will be reviewed to inform scale up and improve tariff systems in low-income households under this project. The inherent E&S risks and impacts of the project underscores the relevance for the ESS1 to be used as a guiding framework for assessing and managing such impacts. For Non-network Sanitation Management Services component, during the construction stage stock piling of construction materials, excavations may cause increased dust and increased number of vehicles may also contribute to air pollution. However, they are temporary and insignificant in nature. At this stage of the project, design of pipeline alignments and at least two of the locations of Non-network Sanitation Management Services facilities are finalized and hence two separate Environmental and Social Impact Assessment (ESIA) documents has been drafted with detailed E&S Management Plans and these documents will be finalized within 45 days of the negotiation. The ESIA which is drafted for the non-network sanitation system (CNNS) covers only two wards where sub-projects’ details are known. However, the location of the DEWATs for some other wards are yet to be finalized and therefore a broad ESMP is provided in the sanitation systems related ESIA with guidance on how to address specific E&S risks and impacts in wards where the specific location of project assets and activities related thereto are yet to be decided. An Environmental and Social Commitment Plan (ESCP) and other relevant management plans are also drafted with commitments, procedures and responsibilities for managing environmental and social risk and impacts of the project. If Contingent Emergency Response Component (CERC) is triggered the CERC Manual will include a description of the ESHS assessment and management arrangements. The Project will adopt any For Official Use Only environmental and social (E&S) instruments which may be required for activities under CERC of the Project in accordance with the ESSs, and thereafter implement the measures and actions required under said E&S instruments within the timeframes specified in said E&S instruments. ESS10 - Stakeholder Engagement and Information Disclosure Relevant [Explanation - Max. character limit 10,000] Demand for and access to potable water is a basic need which often draws significant interest from consumers and stakeholders. Official statistics indicate that only 30 percent of the urban population of Bangladesh have access to piped water services. At the same time, reliability and safety of water supplies remain problematic in the country, with 70% of the population being exposed to unsafe drinking water. These challenges coupled with growing urbanization often generate interest in water investment projects in the country. The proposed activities under the project aims at extending improved water access to the entire Chattogram community including urban poor and low income income communities. Accordingly, this standard is considered relevant for this project and will serve as the guiding framework for planning and implementing stakeholder consultation and information disclosure activities in the project. In line with the standard, a stakeholder engagement plan (SEP) has been prepared by CWASA to serve as basis for early consultation of local communities, school authorities, health facility administrators, women, and other water user groups. The SEP prioritizes timely disclosure of relevant information about the project, the population areas targeted to benefit from the project, and the expected environmental and social impacts of these activities. Throughout project planning and implementation, the SEP will be updated from time to time to reflect the scope of risks and concerns associated with project designs and will include feedback and grievance redress mechanism to raise concerns about the Project including on SEA/SH. The stakeholder engagement activities will discuss issues about access and tariffs in low income communities, discuss issues about inclusive designs and universal access, promote Mar 21, 2024 Page 7 of 13 The World Bank Chattogram Water Supply Improvement Project (P176429) safe hygienic practices and leveraged to disseminate information about prevention measures against COVID-19. The SEP will identify the consultation and disclosure needs for site-specific project environmental and social management plans. The SEP will be implemented by the Public Relations Unit of the CWASA. ESS2 - Labor and Working Conditions Relevant [Explanation - Max. character limit 10,000] Based on the scope of the project, direct workers – typically staff of the CWASA and contracted workers – and Primary Supply Workers (PSWs) will be engaged to undertake specific project activities with inherent risks related to Occupational, Health and Safety (OHS). Engineers from the Construction and Supervision Unit of CWASA and workers hired by contractors are expected to carry out excavation, earth movement, trenching and pipe laying works during the construction of the project. The number of workers to be involved and the full scope of this risks cannot be ascertained at this stage of the project. The Bank will liaise with project engineers to assess the number and type of workers that will be involved in the construction activities, and advice on training and mitigation measures against OHS risks and impacts throughout project implementation. During operations, women may be engaged in fee collection as well as operations and maintenance of community-managed systems in low-income neighborhoods, as CWASA attempts to encourage community-managed water points and to engender WASH services in such communities. Working in the context of COVID-19 may also expose workers to the risk of infections if adequate corona virus control measures are not instituted at the sites. Consistent with the requirements of this standard, a labor management plan (LMP) has been prepared with guidance and measures to ensure OHS and control the For Official Use Only potential spread of COVID-19 and other infectious diseases among workers at project sites and offices. The LMP clarifies the terms and conditions under which women will be engaged in tariff collection and outline avenues by which they can raise complaints and grievances related to their involvement in operating community-managed water points. Child labor is prevalent in Bangladesh, predominantly in agriculture and industry. Consequently, children below the age of 18 could attempt to seek construction related work under the project. However, in line with ESS2, the use of child and forced labor is prohibited in the project. The LMP clearly states that persons under the age of 18 are not allowed to work at any site or any facility being financed by the project. Contractors will carry out age verification (using certified birth certificates and citizen identification cards) as a precondition for employment. The project will provide accessible grievance mechanism to allow all workers (direct, contracted and PSWs) to raise workplace concerns to be addressed by the CWASA, site foremen, and sub-station managers. The GRM will provide a parallel avenue for SEA/SH-related grievances to be submitted for review and redress following the necessary confidentiality requirements and sensitivities. ESS3 - Resource Efficiency and Pollution Prevention and Management Relevant [Explanation - Max. character limit 10,000] The project will support construction of improved and energy efficient water supply systems. The treated water is sourced from Karnaphuli and Halda Rivers via existing surface water treatment plants. In addition, new Non-network Sanitation Management Services facilities will be installed at public and communal areas to promote hygiene practice and help prevent the spread of diseases. Despite these positive impacts, some project activities (i.e. excavation, trenching, etc.) may cause pollution of air, soils, and water bodies during the construction phase. Similar impacts may occur during the operation and maintenance of the water supply networks and are expected to be marginal. Mar 21, 2024 Page 8 of 13 The World Bank Chattogram Water Supply Improvement Project (P176429) Domestic wastewater in the city is currently is managed through direct discharge to soil (soak wells), canals and rivers. The ESMPs contained in the two ESIAs will address these adverse impacts. ESS4 - Community Health and Safety Relevant [Explanation - Max. character limit 10,000] There will be some community health and safety risks during the construction phase of this project, especially during the physical works along urban roads for laying water supply pipelines. These risks include traffic diversion and congestion with the potential to exacerbate traffic conditions and induce vehicular accidents and injury; potential for increased transmission of COVID-19 among workers and local population due to the presence of ‘outside’ workers in communities; and the risk of SEA/SH which may materialize in slum and low-income areas during works due to intimate interactions between workers and local women. In addition, there are risks of vector-borne disease that may occur during operation and maintenance which needs to be properly managed. Works phased during night hours may give rise to noise and nuisance in the communities. The ESMPs will outline protocols to minimize transmission of COVID-19 and detail out safety precautions for protecting community from CHS risks associated with construction activities (such as protective labels, fences around trenches, traffic management related guidance). Construction plans contained in the ESMPs will set out plans for managing traffic diversions and community safety issues. The project will have overwhelming positive impacts due to improved water supply system and may help in preventing the spread of COVID-19 by increasing the number of WASH facilities. The water supplied after distribution networks are installed will comply with Bangladesh’s national drinking water quality standards. In addition, the SEP will include For Official Use Only messages aimed at promoting hand hygiene and actions to be adopted in preventing COVID infections. ESS5 - Land Acquisition, Restrictions on Land Use and Involuntary Resettlement Relevant [Explanation - Max. character limit 10,000] As noted above, the construction, expansion and rehabilitation of water distribution networks will occur along access roads, often traversing urban and populated areas. Project component consisted of an east-west transmission main, 1,600mm diameter Ductile Iron approximately 12.8 km long, from Modhunaghat pumping station to a new “Northwest” ground-level reservoir adjacent to the Bhatiari-Hathazari Link Road, initially for 20 ML with room for expansion to 80 ML capacity. The revised treated water transmission system three main components (1) Sheikh Hasina WTP to supplying the KSA, (2) The output from the Sheikh Russel WTP and any additional input from the Sheikh Hasina WTP be pumped to the Kalurghat WTP for onward distribution to sector 1, via the existing Kalurghat Booster, a new ground-level reservoir at ADC Hill and the existing Patenga Booster, and to sectors 4 and 5 a new pumping station at Kalurghat and additional local transmission pipelines and (3) The output from the Mohara WTP to supply Sector 3 and then onward to Sector 2 via a new ground tank and pumping station at the site of the existing DT Booster. Although no land acquisition is expected, the proposed project activities are expected to induce limited in- situ physical displacement of non titleholders and informal occupiers, (+/- 20 households) settled on government land that might be required for the creation of Project assets, temporary adverse economic and livelihood impacts on Project Affected Persons (approximately 250 PAPs) and temporary hardships for a limited durations of time on account of relocation of public utility lines and services such as water, gas, telephone and electricity. During construction activities errand vendors selling on table-tops may not be able to operate their business especially when trenching and pipe laying is being carried out. In addition, excavated materials and trenches are also expected to Mar 21, 2024 Page 9 of 13 The World Bank Chattogram Water Supply Improvement Project (P176429) restrict access to homes, businesses, offices and other facilities of interest to the population. Based on these identified impacts, this standard is considered relevant. Any restrictions on land use which is connected to the project implementation will be addressed through voluntary and good faith negotiations between CWASA and local communities . However, loss of income resulting from disruption of livelihood and economic activities as a result of project works will be compensated for in line with the objectives and requirements of this standard. A Resettlement Policy Framework (RPF) is being finalized to guide the conduct of resettlement planning and implementation throughout the project life. Upon completion of network layout designs, depending on the nature and scale of impacts, either Resettlement Action Plans (RAPs) or Livelihood Restoration Plans (LRPs) will be prepared based on the guidance provided in the RPF and implemented with provisions for compensation and additional livelihood assistance for Project-Affected Persons (PAPs). Based on the current scope of activities, no permanent land acquisition is anticipated. All impacts related to involuntary resettlement and restriction of access to resources are largely expected to be temporary and reversible . For Non-network Sanitation Management Services component, all the land to be used in the project either belong to CCC or private that will be given access for construction of toilets/DEWATs. Consultations with the host community and other stakeholders have been carried out as a part of this ESIA and none raised any issues regarding land ownership. ESS6 - Biodiversity Conservation and Sustainable Management of Living Natural Relevant Resources [Explanation - Max. character limit 10,000] For Official Use Only The proposed project activities will be in built-up brownfield sites, urban, populated and largely contained within the CMA areas, that is already highly altered. However, there are some sensitive sites in and around the city. This includes hills, trees and sensitive water bodies, such as the Halda River, which is one of the country’s major natural spawning ground for major carps. The ESMPs will provide general guideline and procedures for managing impacts related to biodiversity and natural habitats. ESS7 - Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Not Currently Relevant Local Communities [Explanation - Max. character limit 10,000] Based on preliminary social assessment and the findings of the ESIA studies, there are no populations or groups in the project footprint that meet the description of Indigenous People as noted in paragraph 8 of the World Bank’s ESS7. Chattogram is typically urban, cosmopolitan, and inhabited by non-IP populations. Whilst some families may belong to IPs communities, they do not live in distinct settlements and political systems from the mainstream population. Based on this assessment, this standard is not relevant for managing risks in the project. ESS8 - Cultural Heritage Relevant [Explanation - Max. character limit 10,000] Based on the scope of activities and preliminary risks assessment, risks and impacts associated with cultural heritage are not expected to occur. Excavation and trenching will involve depth of 1 to 2m, and are not expected to uncover cultural artifacts. Nonetheless, the relevant aspects of this standard will be drawn to inform the ESMF and ensure Mar 21, 2024 Page 10 of 13 The World Bank Chattogram Water Supply Improvement Project (P176429) that artifacts, if discovered during works, will be duly registered and presented with the relevant authorities in Bangladesh. The ESMF will include a Chance Find Procedure with relevant guidance project for securing requisite permits from national authorities regarding cultural heritage registrations and the stakeholder consultation process will include consultations related to identifying cultural heritage in collaboration with the communities. ESS9 - Financial Intermediaries Not Currently Relevant [Explanation - Max. character limit 10,000] The project does not involve Financial Intermediaries therefore this standard is not relevant. B.2 Legal Operational Policies that Apply OP 7.50 Operations on International Waterways Yes OP 7.60 Operations in Disputed Areas No B.3 Other Salient Features For Official Use Only Use of Borrower Framework No [Explanation including areas where “Use of Borrower Framework” is being considered - Max. character limit 10,000] The Government of Bangladesh (GoB) has policies for environmental risk management, albeit implementation and oversight are weak. The project will use Environmental and Social Framework (ESF) of the World Bank and will not use the borrower framework for managing environmental and social risks. Nonetheless, all project activities will be conducted in compliance with relevant national laws and regulations of Bangladesh and the World Bank’s Environmental and Social standards. Use of Common Approach No [Explanation including list of possible financing partners – Max. character limit 4,000] The Government of Bangladesh is not receiving funds for joint activities related to this project B.4 Summary of Assessment of Environmental and Social Risks and Impacts [Description provided will not be disclosed but will flow as a one time flow to the Appraisal Stage PID and PAD – Max. character limit 10,000] The key social risks of the Project are - (i) potential economic displacement and disruption of other livelihood activities that take place on or alongside pavements and the RoW for water transmission and distribution lines (approximately 250 PAPs); (ii) limited in-situ displacement of informal settlers (+/- 20 households) on parcels of land owned by the CWASA or other Government Departments, that might be required for construction and operation of water reservoir facilities; and (iii) the restriction of access to homes businesses and common property resources during construction. No new land Mar 21, 2024 Page 11 of 13 The World Bank Chattogram Water Supply Improvement Project (P176429) acquisition is envisaged for the Project. The main environmental risks are expected to materialize during construction phase and include noise and dust pollution, dumping and disposal of excavated materials, traffic congestion, as well as concerns for health and safety of workers and communities. SEA/SH risks of the project are rated as low and have been addressed through appropriate mitigation measures in the E&S instruments that have been prepared and disclosed and also those that are in advanced stages of preparation at the time of appraisal. C. Overview of Required Environmental and Social Risk Management Activities C.1 What Borrower environmental and social analyses, instruments, plans and/or frameworks are planned or required by implementation? [Description of expectations in terms of documents to be prepared to assess and manage the project’s environmental and social risks and by when (i.e., prior to Effectiveness, or during implementation), highlighted features of ESA documents, other project documents where environmental and social measures are to be included, and the related due diligence process planned to be carried out by the World Bank, including sources of information for the due diligence - Max. character limit 10,000] Through Project preparation, the following E&S analyses, instruments, plans have been prepared or are in an advanced stage of preparation by CWASA - (i) 2 Environment and Social Impact Assessments (ESIAs) – one for the water supply component and one for the sanitation components (in advanced stage of preparation), (ii) 2 Environment and Social Management Plan (ESMPs) - one for the water supply component and one for the sanitation components (in advanced stage of preparation), (iii) Environment and Social Commitment Plan (ESCP; prepared and disclosed), (iv) Stakeholder For Official Use Only Engagement Plan (SEP; prepared and disclosed), (v) Labor Management Plan (LMP; prepared and disclosed), (vi) Resettlement Policy Framework (RPF – part of ESIA for water supply component; in advanced stage of preparation). In addition, other plans and instruments, if and as required (viz. Resettlement Action Plan (RAP) and / or Livelihood Restoration Plan (LRP), Cultural Heritage Management Plan (CHMP), Chance Find Procedures (CFP)) will be prepared and implemented during Project implementation. III. CONTACT POINT World Bank Task Team Leader: Arif Ahamed Title: Senior Water Supply and Sanitation Specialist Email: aahamed@worldbank.org TTL Contact: Harsh Goyal Job Title: Senior Water Supply and Sanitation Specialist Email: hgoyal@worldbank.org IV. FOR MORE INFORMATION CONTACT Mar 21, 2024 Page 12 of 13 The World Bank Chattogram Water Supply Improvement Project (P176429) The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 473-1000 Web: http://www.worldbank.org/projects V. APPROVAL Task Team Leader(s): Arif Ahamed, Harsh Goyal ADM Environmental Specialist: Md Istiak Sobhan ADM Social Specialist: Anindo Kumar Chatterjee For Official Use Only Mar 21, 2024 Page 13 of 13