APRIL 2024 Second Karachi Water & Sewerage Services Improvement Project [KWSSIP-2] Environmental & Social Impact Assessment Report of Malir Basin Wastewater Interceptors and Treatment Plant April 2024 Project Implementation Unit (PIU) Karachi Water & Sewerage Services Improvement Project (KWSSIP) Disclaimer: This Karachi Water and Sewerage Services Improvement project’s draft Environmental and Social Impact Assessment (ESIA) was prepared by the Government of Sindh broadly following Good International Industry Practices (GIIP) as those required under the Bank’s Environmental and Social Framework (ESF). The review of this ESIA is a key part of the Bank’s due diligence process and is currently ongoing. This draft ESIA may still contain gaps to fully address all pertinent E&S issues in the project. Any gaps will be covered through supplemental studies, assessments, and/or plans that will be completed in a reasonable timeframe to ensure compliance with the ESF. For the benefit of potentially project affected people (PAP) and other interested stakeholders, and in alignment with the Bank’s Policy on Access to Information this Executive Summary of the draft ESIA is being disclosed as soon as it became available. This disclosure, however, should not be considered as a final clearance of the ESIA by the Bank. Executive Summary The Government of Sindh (GoS) through Karachi Water and Sewerage Corporation (KWSC) is planning to implement the second phase of the Karachi Water & Sewerage Services Improvement Project (KWSSIP-2) in various parts of Karachi. One of the planned KWSSIP-2 interventions comprises of laying interceptors to collect domestic sewage from the heavily settled banks of the Malir River and construction of a 180 million Gallon Per Day (MGD) sewage treatment plant (TP-IV) to treat the collected sewage. This Environmental and Social Impact Assessment (ESIA) of the proposed project has been carried out to address the potential environmental and social (E&S) impacts of the project in compliance with the Sindh regulatory requirements and the WB Environmental and Social Framework (ESF). The overall E&S risk of SOP-2 is high, based on the internal E&S risk classification of World Bank (WB), considering that the environmental risk is substantial while the social risk is high. An ESIA was prepared for Malir Basin Wastewater Interceptors and Treatment Plant to assess the E&S risks associated with the construction and operation of this subcomponent and to develop a corresponding Environmental and Social Management Plan (ESMP) that will help avoid or minimize the adverse impacts of the project to the environment and stakeholders. The scope of the ESIA includes (i) review of the applicable national E&S legislative and policies, (ii) assess the existing physical, biological, and socio-economic baseline conditions, (iii) identify potential adverse and positive E&S impacts from all stages of the project, (iv) assess and compare different subproject alternatives in terms of E&S impacts, (v) identify stakeholders that are likely to be affected or have interest or a stake in the project, with emphasis on disadvantaged and vulnerable groups, and carry out consultation to solicit their concerns regarding the project, and (vi) provide ESMP for all stages of the project as a tool for the implementation of the suggested measures, along with monitoring and evaluation mechanism with adequate resources including capacity building of implementing agencies. The proposed project comprises of the following key components:  About 22 km long wastewater Interceptors along the Malir River with chambers for receiving sewage from 20 Sewer Connections. The proposed interceptor will start at the left bank of Malir River and will pass through the districts of Malir and Korangi and the cantonment areas in Faisal and Korangi Creek.  Connection of TP-II bypass line and pump room (a non-operational Sewage Treatment Plant at Mahmoudabad) with the Malir Interceptors through a 2.5 km long pipeline.  Manholes for access and cleaning; and  Sewage Treatment Plant (TP-IV) with a capacity of 180 MGD located within the Korangi Creek Cantonment Area The proposed interceptor will be installed in mostly agricultural, residential and commercial areas. The location of TP-IV is currently being used for livestock grazing. Water bodies that are near the proposed project include the Malri River, Thaddo Nala, Chakora Nala, Chakkra Nala, Korangi Creek and the Arabian Sea. There are about 57 trees that will be removed along the proposed interceptor alignment, all of which are not ecologically important as per IUCN. At present, dust emissions are evident along the interceptor alignment due to the passing of vehicles in the unpaved roads. The measured PM 2.5 concentrations in all the selected monitoring stations exceeded the SEQS/WBG limits while one station exceeded the limit for PM10. The identified sensitive receptors near the proposed project include the Salim Habib University (Korangi Creek), Karachi Public School (Bhittai Colony), Mohammadi Masjid and M.Y. Clinic (Sidra Street). Impacts during Construction Phase The following are the potential environmental and social risks and impacts during the construction phase of the project. Impacts related to ESS 2: Labor and Work Conditions Construction workers will face occupational health and safety risks from hazards related to construction activities. To guarantee proper safety precautions are followed during construction, contractors must formulate and execute an occupational safety and health program. Furthermore, workers will also be exposed to the following labor risks:  Child labour impact might arise during construction stage, as large number of skilled and unskilled labour will be required by the contractor for the construction activities of the proposed project.  Forced labour and/or human trafficking.  GBV might arise due to discrimination made against women by unequal work distribution and unequal pay structure among others.  SEA/SH against women might occur as a consequence of mixing of men and women at the construction site and camps.  Labour exploitation such as unpaid and/or incorrect payment of wages by employer, poor working conditions A Labor Management Procedure was developed for KWSSIP-2 to manage the identified labor risks. The key highlights of the LMP on how to address the issues of child and forced labor, labor influx, GBV, SEA/SH, occupational health and safety, and trafficking will be included in the bid documents of the contractors. Impacts related to ESS 3: Resource Efficiency and Pollution Prevention Management Oil or chemical spills and leaks can contaminate nearby water bodies and soil. Proper containment measures and equipment maintenance should be implemented to address leaks appropriately. Wastewater from workers and construction activities, along with storm water runoff from excavated areas transporting higher suspended solids, could adversely affect water quality if discharged untreated. Temporary silt traps will be installed in the drainage system within the construction sites and temporary sedimentation basins will be installed to catch the surface run-off. Sufficient sanitary toilet facilities with septic tanks will be provided in the camp sites and construction sites. The septic tanks will discharge to the existing sewerage system with prior approval from KWSC. Poor management of domestic and hazardous waste could lead to pollution of soil and water sources. Contractors need to develop and execute a comprehensive Waste Management Plan. Excavation works can generate substantial dust emissions that pose health risks, especially to vulnerable groups like children and elders. Mitigation through regular water sprinkling at sites, covering excavated heaps, and other dust suppression steps should be pursued. Vehicles and heavy machinery emit air pollutants during operation. Maintaining equipment in sound working order through inspections and preventive maintenance helps minimize exhaust emissions and associated impacts. The use of heavy machinery and equipment during operations can produce disruptive noise levels, creating nuisance and irritation for surrounding communities and disturb the daily activities of the sensitive receptors. Regular maintenance checks on all generators, compressors, and high noise tools should be conducted to minimize noise output. As far as feasible, any unavoidably noisy construction activities should be restricted to daytime hours alone to lower disturbance. Impacts related to ESS 4: Community Health and Safety The project construction will boost economic activity in the area, generating employment for around 600 skilled and unskilled workers. Hiring locally qualified laborers should be prioritized where possible. Influx of workers also presents business opportunities for locals to meet daily demands for food, lodging, etc. The intersection of the interceptor sewer with key roadways including Korangi Link Road, EBM Causeway, Korangi Crossing Road and Baloch Colony Road could create major traffic disruption during the excavations and pipe jacking operations. Lengthy road detours or complete closures would severely impact commuters and transport in the vicinity. Additionally, trucks delivering construction materials to work sites would further congest local roads. The Contractor shall develop and implement a Traffic Management Plan. Open excavations could pose safety risks to pedestrians and vehicles, especially at night if left un- barricaded. Warning signs and safety signage will be erected and proper lighting at night will be provided to prevent accidental falls. Influx of workers could introduce communicable and vector-borne diseases into the community warranting worker training, public health awareness drives and disease surveillance efforts. Probable rise in crimes like theft, gender-based violence, substance abuse requires enforcement outlined in Labor Management Procedures to maintain community security. Labor-community social conflicts will be mediated through an operational Grievance Redress Mechanism to resolve issues. Impacts related to ESS 5: Land Acquisition, Restriction on Land Use and Involuntary Resettlement Disturbance to livelihoods is the foremost potential socio-economic impact from the construction of the project, mainly associated with the agriculture being performed in the riverbed. The project will temporarily affect the livelihood of 38 Project Affected Persons (PAPs). The crops cultivated along the alignment of the interceptor could be directly affected due to construction activities. Consulted PAPs recognized that all the land they cultivate belongs to the GoS. Since they are non-title holders, no land acquisition will be required; however, as per WB ESS5, compensation will be paid for standing crops within the alignment and for other temporary structures such as cattle farms. Measures to address these livelihood impacts have been included in the Resettlement Plan (RP) – a stand-alone document prepared in accordance with the WB ESS5. Impacts related to ESS 6: Biodiversity Conservation and Sustainable Management of Living Natural Resources Approximately 57 trees located within the right-of-way corridor are anticipated to be cleared during project construction. A provisional tree replanting sub-plan has been formulated specifying that tree removal activity will be restricted only to vegetation directly within this corridor. Further, compensatory replanting of trees will be mandated to replace trees removed. Impacts related to ESS 7: Indigenous People There are no know tribal or indigenous people within CoI. Impacts related to ESS 8: Cultural Heritage There are no cultural sites within the CoI. However, shrine, graveyards and mosques are located within the CoI that may be exposed to the environmental and social impacts of the project. Impacts during Operation Phase Impacts related to ESS 2: Labor and Working Condition Workers are exposed to occupational health and safety hazards related to the operation and maintenance of the interceptor and STP. An OSH program should also be developed and implemented. Workers and staff at TP-IV can be exposed to pathogens in sewage. Vectors for sewage pathogens include insects (e.g., mosquitoes, flies), rodents (e.g., rats), and birds (e.g., gulls). A comprehensive plan will be developed and implemented to manage and avoid vector-borne diseases, also considering the seasonality of the issue. Labor risks such as labor exploitation, child and forced labor, GBV and SEA/SH are also a potential risk due to the influx of labor during the O&M. The LMP developed for KWSSIP should also be implemented during operation phase. Impacts related to ESS 3: Resource Efficiency and Pollution Prevention Management The following may contaminate the soil and water sources if not properly managed.  Solid wastes and hazardous wastes will be generated during operations. A Waste Management Plan will be strictly implemented.  Inadequately treated effluent, leaks and overflows from the interceptor and STP. KWSC will ensure that the STP is properly operated and maintained. The quality of the treated effluent shall be regularly monitored.  Sludge generated from STP. Dried sludge from the STP will be reused for horticultural activities. Prior to transport of the sludge to the end-users, sludge quality in terms of pathogens and heavy metals will be monitored. The operation of the STP is expected to improve the water quality in Malir River, Korangi Creek and Arabian Sea by treating wastewater. The proposed interceptor line will redirect sewage presently discharged untreated into Malir River towards TP-IV for treatment, thereby decreasing pollutant loads to the river. Additionally, the properly treated plant discharged to Korangi Creek will lessen contamination volumes as compared to the present situation with raw sewage outfalls. As Korangi Creek drains into the Arabian Sea, enhanced water quality within the creek from the proposed wastewater treatment is expected to produce secondary benefits for connected waters. The reduction in pollution and contaminants discharged to the creek will translate into lower effluent loads flowing downstream into the Arabian Sea. Declining pollutant exposure from this project may aid in preserving adjacent mangrove areas and aquatic ecosystems which are presently impacted by high wastewater contamination emanating from the city. Impacts related to ESS 4: Community Health and Safety The operation of Malir Basin and TP-IV will need 193 workers, which provides employment opportunities to the local community. The local community may face health and safety risks from the following O&M related activities. An OSH program shall be strictly implemented during O&M activities.  Screenings from interceptor and TSP may attract rodents and vectors which may cause the spread of vector-borne diseases. A solid waste management plan shall be implemented. Waste material removed from the interceptor and STP shall be disposed of through SEPA-certified hazardous waste handlers.  Maintenance of the interceptor will require opening of manholes which may pose falling hazard. Barricades and warning signages will be provided onsite.  Methane gas from the anaerobic digestion of sludge may cause fire and explosion. Flaring of methane will be done and monitored daily.  Odor generation from TP-IV could be expected during operational phase. Proper maintenance of the STP components will be ensured during operation to ensure that it will not emit foul odors. The large inflow of laborers and outside contractors into the local communities may escalate crime rates and the sense of insecurity among residents. Such unlawful conduct could encompass offenses like theft, gender-based violence, narcotics use, sexual assault, and human trafficking. Addressing these risks through enforcement and oversight is necessary to safeguard vulnerable groups from potential exploitation. The end-users of the dried sludge in horticulture and the consumers of the products are also at risk from the excreta-related pathogens and heavy metals that the sludge may contain. A Sanitation Safety Planning shall be conducted to systematically identify and manage health risk along the sanitation chain and to maximize the potential benefits of reusing the sludge while minimizing the health risks. Removal of raw sewage from the Malir River will improve the overall hygienic condition of the area thereby reducing the incidence of water-borne diseases and positively affecting the health of the population. This in turn will reduce their expenditure associated with healthcare. Environmental and Social Management Plan In addition to the ESMP developed to mitigate the identified environmental and social risks, a Stakeholder Engagement Plan, a Labor Management Procedure, and a Resettlement Action Plan were developed for this project. A CESMP should also be developed by the contractors to demonstrate their approach to how to comply with the ESMP. An Environmental and Social Monitoring Plan was also developed to monitor and verify the effectiveness of the implementation of mitigating measures in terms of minimizing the negative impacts. The main E&S monitoring parameters during construction include monitoring of excavation works with disposal, environmental quality monitoring (air, noise and drinking water), occupational and community health and, safety etc. The Operational Phase Monitoring Plan incorporates a comprehensive set of monitoring parameters designed to validate the positive impacts of the project. These parameters include treated effluent disposal, where the quality of discharged effluent will be regularly assessed to ensure compliance with environmental standards. Sludge management will be monitored to track the recycling and utilization of nutrient-rich sludge as a fertilizer and soil improver. Odour generation, pathogens, and vectors will be continuously evaluated to mitigate potential environmental and health risks. Moreover, the plan focuses on improvement in ground water quality within the interceptor AoI, with regular testing and analysis of groundwater parameters. The Health Profile in the Interceptor's AoI will be closely monitored, tracking changes in public health indicators to validate the project's positive impact on the community's well-being. Additionally, Mangrove Health will be assessed through periodic surveys and measurements of mangrove density, biodiversity, and overall ecosystem health, ensuring the protection and enhancement of the Korangi Creek mangroves. These monitoring efforts underscore the project's commitment to sustainability, environmental responsibility, and community welfare throughout its operational phase. The total estimated cost for the environmental and social management, monitoring, and auditing during pre-construction, construction, and O&M (annual cost and will be updated for next upcoming years accordingly) comes to about PKR 45.471 Million, excluding resettlement and compensation cost. Institutional Arrangement The proposed project is under the PIU of KWSSIP-2 during the pre-construction and design phase. The Project Director (PD) has the overall responsibility for the design and pre-construction requirements. During construction, the ESC will be responsible for the overall implementation of the ESMP, RP, and other related requirements. The operation of the project will be under the direct jurisdiction of Engineers and Plant Managers, who shall also be responsible for the monitoring and compliance with the ESMP. Grievance Redress Mechanism A Grievance Redress Mechanism (GRM) was developed to address any complaints or grievances that may arise during the implementation of the project. Complaints will include, but not limited to, E&S issues (dust, noise, air pollution, social and cultural issues), damage and blockage of public utilities, traffic inconvenience, gender-based violence (GBV) and harassment, resettlement issues including loss of livelihood; and issues related to compensation of resettlement impacts. Separate Grievance Redress Committees (GRC) are to be formed for the community, subproject and at the PUI level. A GRC dedicated to resolve GBV-related issues will also be formed. The objectives of the GRM are (i) establish an organizational structure to resolve any grievances from individuals and communities fairly and equitably, (ii) provide a platform for the aggrieved individual or community to deliver their grievances, (iii) ensure that affected communities and individuals are treated fairly at all times, (iv) identify flaws in the operational functions of the project and suggest corrective measures; and (v) ensure the sustainability of the project. Complainants may lodge their grievances through several channels, including online, mail, phone, WhatsApp, e-mail, and complaint boxes. Moreover, PIU has established an e-Portal for filing and tracking progress of complaints lodged online. This ESIA report should be updated as needed due to changes in the project design, changes in the baseline conditions, or identification of potential new impacts.