Environmental and Social Management System … and Social Management System Framework Champion Agro...

Environmental and Social Management System Framework

Champion Agro Limited Regd. Corporate Office: Survey No. 217, Plot No. 2, NH 8-B, Veraval Main Road, Veraval (Shapar) Rajkot – 360024 Gujarat, India Contact Person: Mr. Shamender Sharma, COO Email: [email protected] URL: www.championagro.com The ESMF is a document of the Champion Agro Limited. The views expressed herein do not necessarily represent those of ADB’s Board of Directors, Management or staff and may be preliminary in nature.

ENVIRONMENTAL AND SOCIAL MANAGEMENT SYSTEM FRAMEWORK

CONTENTS Page

I INTRODUCTION 1

II ENVIRONMENTAL AND SOCIAL POLICY, APPLICABLE REQUIREMENTS AND MANAGEMENT SYSTEM FRAMEWORK 2

A Policy 2

B CAL’s Operations 2

C Applicable Safeguards and Social Requirements 3

D Applicable National Regulatory Acts and Notifications 3

III ENVIRONMENTAL AND SOCIAL MANAGEMENT PROCEDURE 9

A Screening and Categorization 9

B Due Diligence 12

C Information Disclosure, Consultation and Participation 17

D Grievance and Redress Mechanism 19

E Gender Mainstreaming and Compliance with Core Labor Standards 20

F Third Party Due Diligence 21

G Compliance Monitoring and Reporting 22

IV ORGANIZATIONAL STRUCTURE AND RESOURCES FOR ESMF IMPLEMENTATION 23

List of Tables

Table 1 Application of ADB Safeguards Requirements at the Corporate and Subproject Levels 7

Table 2 Surveys for RP Preparation 15

List of Annexures

Annexure 1 Existing and Proposed Facilities by CAL under ADB Financing 25 – 26

Annexure 2 Prohibited Investment Activities List of ADB 27 – 28

Annexure 3 ADB’S Social Protection Requirements 29 – 30

Annexure 4 Land Acquisition Policy by GIDC 31 – 35

Annexure 5 CAL’s Corporate Consideration for Siting and Land Purchase for New Facilities 36 – 38

Annexure 6 Environmental Assessment/Screening Checklist 39 – 41

Annexure 7 Involuntary Resettlement Screening Checklist 42 – 44

Annexure 8 Indigenous Peoples Impact Screening Checklis 45 – 47

Annexure 9 Gender and Labor Checklist 48 – 50

Annexure 10 Outline of an Environmental Impact Assessment Report 51 – 54

Annexure 11 Outline of a Resettlement Plan 55 – 59

Annexure 12 Outline of an Indigenous Peoples Plan 60 – 63

Annexure 13 Outline of Environmental Due Diligence Report on Project Facilities 64 – 65

Annexure 14 Annual Environmental and Social Performance Report 66 – 70

ENVIRONMENTAL AND SOCIAL MANAGEMENT SYSTEM FRAMEWORK

I INTRODUCTION 1 M/s Champion Agro Limited (CAL) is a leading Indian agribusiness corporate entity established in 1998 from Gujarat, fully integrated from the provision of agricultural inputs to farmers up to the delivery of fresh fruits & vegetables to corporate retailers. CAL, presently owns a chain of 38 agro retail malls in Gujarat, and has plans to scale it up to 400 malls across India. 2 CAL is a leader in the sale of fruits & vegetables, with 26,000 acres of land under contract and lease farming in Gujarat, and handling, storage, and distribution facilities across several Indian states (Gujarat, Himachal Pradesh and New Delhi). CAL is also involved in cattle feed production, manufacturing of irrigation pumps, greenhouses, farm services (testing, consultancy) and directly employs about 200 people, including at least 170 with university education in agronomy and agribusiness. In addition, about 8,500 farmers work under contract and lease farming with the CAL group. Over the years, 15,000 farmers have been trained in scientific crop cultivation practices and more than 40,000 have benefited from the CAL’s consultancy services. 3 CAL is presently seeking a corporate loan from ADB to enhance and invest in horticulture value chain infrastructure facilities. The investment proposals include facilities primarily catering to process the harvested fruits and vegetables (from farm gates) in terms of washing-grading-waxing-ripening (if required/ applicable), pre cooling storage under regulated/ controlled atmosphere, packing and transportation to retailer destinations. The facilities, with the installed capacities will be designed to ensure demand driven regulated supply of processed fruits and vegetables throughout the year and absorb seasonal fluctuations. The existing facilities and the proposed facilities (the latter to be financed by ADB) is given in Annexure 1. 4 CAL has developed and adopted an Environmental and Social management System (ESMS) Framework, described in this document based on which it will develop, establish and implement an ESMS that is consistent with the ADB’s policies, strategies and operations manual such as Safeguard Policy Statement (SPS, 2009), Social Protection Strategy (2001), ADB Gender and Development Policy (1998), Public Communication Policy (2011) as well as that of the National environmental and social regulatory requirements.

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II ENVIRONMENTAL AND SOCIAL POLICY, APPLICABLE REQUIREMENTS AND MANAGEMENT SYSTEM FRAMEWORK

A Policy 5 The environmental and social policy and management framework seeks to guide CAL: (i) To avoid, and when avoidance is not possible, to minimize and mitigate

adverse impacts of investments on the environment and social issues; and (ii) To maximize investment opportunities for environmental and social benefits. 6 CAL continually shall endeavour to ensure and enhance effective environmental and social management practices in all its activities, products, and services focussing on the following: (i) Ensuring that applicable environmental and social safeguards requirements,

as defined in Section II (B) are met for all proposed subprojects;1 (ii) All proposed subprojects are designed, constructed, operated, and maintained

in a manner consistent with applicable environmental and social safeguards requirements, as defined in Section II (B);

(iii) Integrating environmental and social risk(s) into CAL’s corporate risk management analysis;

(iv) Ensuring industry specific EHS performance procedures and operating standards are implemented to mitigate associated risks at all its existing facilities and newly proposed subprojects, and

(v) Promoting environmental enhancement measures and social benefits at all its existing facilities and newly proposed subprojects.

7 This policy shall be communicated to all staff and operational employees of CAL at its corporate office and at all its subproject facilities. B CAL’s Operations 8 The Company is involved in a wide range of agri-business activities that involve providing agricultural inputs to farmers up to the delivery of fresh fruits and vegetables to corporate retailers. It is also involved in assembling and marketing of pumps for agricultural applications, agri-retail mall operations, contract and lease farming, construction of green net houses, cattle feed manufacturing, and fruit and vegetable handling facilities involving grading, cooling, ripening and cold storage. Based on the nature of activities involved in the entire chain of operations, these are

1 The term “subproject” is used in this document to mean specific project facility among several facilities to be financed in part

or in full by CAL using ADB funds

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expected to have limited potential for adverse environmental impacts, that are few in number, generally site-specific, largely reversible, clearly evident at the time pf the assessment and readily addressable through mitigation measures, which typically require a limited or focused environmental and/or social assessment, or straight-forward application of environmental management measures, in order to be compliant to regulatory requirements, design criteria or construction standards, resettlement issues, scheduled tribes / indigenous peoples issues. C Applicable Safeguards and Social Requirements 9 While the activities have limited potential for adverse environmental and social impacts CAL and its subsidiaries will ensure that: (i) All proposed subprojects are screened against the Prohibited Investment

Activities List (PIAL) of ADB (Annexure 2); (ii) All proposed subprojects with potential environmental and/or social impacts

are reviewed and assessed against Safeguards Requirements 1-3 (Appendix 1, 2, 3) of the ADB’s Safeguard Policy Statement (SPS), 2009;

(iii) All proposed subprojects will be reviewed and evaluated against the national laws, regulations, and standards on environment, health, safety, involuntary resettlement and land acquisition, scheduled tribes/indigenous peoples and labor.

(iv) Gender issues will be identified and women’s needs and concerns addressed. Specifically, (i) gender analysis be included as part of the environmental and social impact assessment, (ii) women will be involved during consultations, (iii) mitigating measures will be developed to address impacts on women, and (iv) opportunities to assist and benefit women will be explored; and

(v) CAL and its contracts with civil works contractors, subcontractors, and other providers of goods and services include provisions to employ local labor whenever possible and measures to comply with ADB’s social protection requirements (Annexure 3);

D Applicable National Regulatory Acts and Notifications 10 Environment. All proposed subprojects to be developed by CAL will strictly comply with the relevant National environmental laws and regulations of the Government of India and respective State laws and regulations. These laws and regulations include: The Environmental Protection Act,(1986); The Water (Prevention and Control of Pollution )Act, 1974, as amended upto 1988, The Air (Prevention and Control of Pollution) Act, 1981 as amended upto 1987 and Environmental Impact Assessment Notification,1994 with latest amendments. 11 CAL shall ensure that all subprojects it develops will adopt and comply with internationally-recognized and best practices on environmental health and safety

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(EHS) procedures, performance standards, and the Labor Laws of Government of India and State Laws and other related provisions relevant for agro and food processing industry sector. 12 Consent Management and Regulatory Compliances at State Level. The facilities proposed by CAL will require to obtain the consent for establish (CFE), prior to commencement of construction activities of the subproject and consent for operation (CFO) prior to commencement of commercial operations of the subproject. The consents shall be obtained from the State Pollution Control Board, through submission of required information and applicable consent fee. The submission of periodical environmental monitoring test reports and any other consent conditions stipulated by the State Pollution Control Board shall be complied by ESMU. 13 Involuntary Resettlement and Rehabilitation. In India, compensation for land acquisition (LA) and resettlement assistance for project affected persons/families is governed by the Land Acquisition Act (1894), which has been amended from time to time. 14 Land Acquisition Act, 1894 as amended in 1984. This Act enables the State to acquire private land for public purpose and has provisions for acquisition of land for industrial purposes. The Act ensures that no person is deprived of land except under law and entitles APs (landowner, tenant or licensee) to a hearing before acquisition, with due and adequate compensation made thereafter. The Act deals with cash compensation and provides several methods of valuing compensation. Several Indian states are using negotiations as a means to determine compensation and acquire land. The Act has a provision, which enables any project proponent to opt for direct purchase of land on the basis of negotiated price after issue of notification requiring acquisition of land under relevant Act(s) i.e., section 4(1) of the Land Acquisition Act, 1894 through the competent District authorities. However, only landowners, tenants and licensees are possible compensation recipients and the Act does not recognize and exclude the landless, agricultural and non-agricultural labourers, artisans, forest produce collectors. Grievance redress mechanisms are also in place and APs may seek the intervention of the High Court and Supreme Court under this Act. 15 National Resettlement and Rehabilitation Policy (NRRP), 2007. The Government of India notified the National Rehabilitation and Resettlement Policy in October, 2007. This policy and the associated legislative measures aim at striking a balance between the need for land for developmental activities and, at the same time, protecting the interests of the land owners, and others, such as the tenants, the landless, the agricultural and non-agricultural labourers, artisans, and others whose livelihood depends on the land involved. The objectives of the National Rehabilitation

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and Resettlement Policy are as follows:- (i) to minimize displacement and to promote as far as possible, non-displacing or

least-displacing alternatives; (ii) to ensure adequate rehabilitation package and expeditious implementation of

the rehabilitation process with the active participation of the affected families; (iii) to ensure that special care is taken for protecting the rights of the weaker

sections of society, especially members of the Scheduled Castes and Scheduled Tribes, and to create obligations on the State for their treatment with concern and sensitivity;

(iv) to provide a better standard of living, making concerted efforts for providing sustainable income to the affected families;

(v) to integrate rehabilitation concerns into the development planning and implementation process; and where displacement is on account of land acquisition, to facilitate harmonious relationship between the requiring body and affected families through mutual cooperation.

16 The NRRP 2007 emphasizes the need for participatory and transparent R&R planning and implementation. A strong grievance redress mechanism has been prescribed, which includes standing R&R Committees at the district level, R&R Committees at the project level, and an Ombudsman duly empowered for this purpose. The R&R Committees shall have representatives from the affected families including women, voluntary organizations, panchayats, local elected representatives, etc. Provision has also been made for post-implementation social audits of the rehabilitation and resettlement schemes and plans. 17 At State Level, the Gujarat Industrial Development Corporation (GIDC)2 has adopted a new land acquisition policy in year 2010 which safeguards that no farmland is acquired forcibly for the setting up of private companies. Under this policy, farmland acquisition is to be made only if 100% farmers give consent. The Government will not do any forceful acquisition for any private companies. As per this new policy, land will be acquired from farmers at market prices determined by a third party agency such as Centre for Environment Planning and Technology (CEPT) University," Copy of the policy is given in Annexure 4. 18 Indigenous Peoples. By definition, indigenous people (IP) refer to a population with social, cultural, economic, and political traditions and institutions distinct from the mainstream or dominant society and culture. IP with similar cultural 2 GIDC is responsible for setting up Industrial Areas/Estates and therefore extensively involved in land acquisition and

development of industrial areas and estates and allot them to those interested in setting up industries. The land acquisition policies developed by GIDC can serve as a good reference for any land acquisition for industrial purposes within Gujarat and elsewhere.

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characteristics are known as Adivasi in Hindi and are recognized as Scheduled Tribes (STs) as per the Indian Constitution. 19 As per SPS, the term Indigenous People is used in a generic sense to refer to a distinct, vulnerable, social and cultural group possessing the following characteristics in varying degrees: (i) self identification as members of a distinct indigenous cultural group and recognition of its identity by others; (ii) collective Annexure to geographically distinct habitats or ancestral territories in the project area and to the natural resources in these habitats and territories; (iii) customary cultural, economic, social or political institutions that are separate from those of the dominant society and culture; and (iv) a distinct language, often different from the official language of the country or the region. Essentially, indigenous peoples have a social and cultural identity distinct from the mainstream society that makes them vulnerable to being overlooked in development processes. 20 The Legal Policy Framework in India for Indigenous People is listed hereunder:

21 National Commission for Scheduled Tribes. The National Commission for Scheduled Tribes has been formed through bifurcation of the National Commission for Scheduled Castes and Scheduled Tribes is under the 94th Amendment Act of the Constitution. Although, the National Commission for Scheduled Tribes has been created in August 2003, little measures in terms of adequate budgetary and staff allocations have been made to make the Commission function effectively. One of the duties assigned to the National Commission for Scheduled Tribes and Scheduled Castes is to submit reports to the President annually or at such other time as the Commission may deem fit, upon the working of the safeguards.

22 The SCs/STs Prevention of Atrocities Act, 1989. The Scheduled Castes and Scheduled Tribes (Prevention of Atrocities) Act, 1989, is the main Act to deal with atrocities against members of Scheduled Castes and Scheduled Tribes. Gujarat has setup 10 exclusive Special Courts, apart from this some states have also setup special courts like Andhra Pradesh (12), Bihar (11), Chattisgarh (7), Gujarat (10), Karnataka (6), Madhya Pradesh (29), Rajasthan (17), Tamil Nadu (4), Uttar Pradesh (40) and Uttarakhand (1). The remaining States and Union Territories have notified the existing Courts of Sessions as Special Courts for the trial of offences under the Act. 23 Panchayat Extension to the Scheduled Areas Act (PESA), 1996. The Parliament of India has passed the Provisions of the PESA, to extend the provisions of the 73rd Constitutional Amendment to the Schedule V Areas of the country. This Act accords statutory status to the Gram Sabhas in Schedule V areas with wide-

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ranging powers and authority. This aspect was missing from the provisions of the 73rd Constitutional Amendment. This Act recognizes the prevailing traditional practices and customary laws besides providing the management and control of all the natural resources- land, water and forest in the hands of people living in the Schedule Areas. The Act empowers people in the tribal areas through self governance. 24 One of the important provisions of this act states “the Gram Sabha or the Panchayats at the appropriate level shall be consulted before making the acquisition of land in the Scheduled Areas for development projects and before re-settling or rehabilitating persons affected by such projects in the Scheduled Areas 25 The Scheduled Tribes and Other Traditional Forest Dwellers Act 2006. The Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act 2006, recognises and vests the forest rights and occupation in forest land to Scheduled Tribes and other traditional forest dwellers who have been residing in such forests for generations but whose rights are not recorded. This law provides for recognition of forest rights to Scheduled Tribes in occupation of the forest land prior to 13.12.2005 and to other traditional forest dwellers who are in occupation of the forest land for at least 3 generations i.e. 75 years, up to maximum of 4 hectares. These rights are heritable but not alienable or transferable.

26 The National Policy on Tribals, 2006. The success of the National Policy on Tribals of the Government of India to a large extent will depend on strengthening of the National Commission for Scheduled Tribes, implementation of the Civil Rights Act and the Scheduled Castes and Scheduled Tribes (Prevention of Atrocities) Act, 1989 and making necessary budgetary allocations.

Table 1: Application of ADB Safeguards Requirements at the Corporate and Subproject Levels

Category Assigned

Environmental Safeguards

Involuntary Resettlement Safeguards

Indigenous Peoples Safeguards

Category A1 (with potential significant impacts)

Comply with (i) ADB’s PIAL and (ii) Safeguard Requirements 1 of the ADB Safeguard Policy Statement, including EIA preparation & submission, and (iii) national laws.

Comply with (i) ADB’s PIAL and (ii) Safeguard Requirements 2 of the ADB Safeguard Policy Statement, including RP preparation & submission, and (iii) national laws.

Comply with (i) ADB’s PIAL and (ii) Safeguard Requirements 3 of the ADB Safeguard Policy Statement, including IPP preparation & submission, and (iii) national laws.

Review and Web Disclosure Procedures

Submit to ADB for review Environmental

Social Safeguards Audit report and Corrective

Social Safeguards Audit report and Corrective

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Category Assigned




for Category A Safeguards Compliance Audit and Corrective Action Plan and for disclosure on ADB website prior to first disbursement. Disclose (i) key information on environmental and social safeguard aspects of the subproject and/or (ii) information from EIA to affected people. Submit EIA to ADB for review, clearance and for 120-day disclosure on ADB website prior to project approval. Submit the semi-annual monitoring report of projects to ADB for disclosure on ADB/KESPPL website. Submit the corporate annual environmental and social performance report to ADB for for disclosure on ADB / KESPPL website

Action plan disclosed on ADB website prior to first disbursement. Key information from RP disclosed to affected people during project preparation. ADB to review RP for Category A or B project prior to disbursement for the project and disclose on ADB website. Semi-annual monitoring reports disclosed locally in a form and language understandable to affected people and in full on ADB website. Submit the corporate annual environmental and social performance report to ADB for for disclosure on ADB/ KESPPL website

Action plan disclosed on ADB website prior to first disbursement. Key information from IPP disclosed to affected people during project preparation. ADB to review IPP for Category A or B project prior to disbursement for the project and disclose on ADB website Semi-annual monitoring reports disclosed locally in a form and language understandable to affected people and in full on ADB web Submit the corporate annual environmental and social performance report to ADB for for disclosure on ADB / KESPPL website.

Category B (with less significant impacts)

Comply with PIAL and (i) Safeguards Requirements 1 of the ADB Safeguard Policy Statement, including IEE preparation & submission, and (ii) compliance with National and State laws

Comply with PIAL and (i)Safeguards Requirements 2 of the ADB Safeguard Policy Statement, including RP preparation & submission, and (ii) compliance with National and State laws

Comply with PIAL and (i) Safeguards Requirements 3 of the ADB Safeguard Policy Statement, including IPP preparation & submission, and (ii) compliance with National and State laws

Review and Web Disclosure Procedures for Category B projects

Submit to ADB for review Environmental Safeguards Compliance Audit and Corrective

Key information from RP disclosed to affected people during project preparation.

Key information from IPP disclosed to affected people during project preparation.

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Category Assigned




Action Plan and for disclosure on ADB website prior to first disbursement. Disclose (i) key information on environmental and social safeguard aspects of the subproject and/or (ii) information from IEE to affected people. Submit the IEE to ADB for review, clearance and disclosure of IEE prior to disbursement. Submit the annual monitoring report to ADB for disclosure. Submit to ADB the annual monitoring report of projects disclosed on ADB / KESPPL for public disclosure.

ADB to review RP for Category A or B project prior to disbursement for the project and disclose on ADB website. Social Safeguards Audit report and Corrective Action plan disclosed on ADB website prior to first disbursement. Annual monitoring reports disclosed locally in a form and language understandable to affected people and in full on ADB website. Semi-annual monitoring reports disclosed locally in a form and language understandable to affected people and in full on ADB website.

ADB to review IPP for Category A or B project prior to disbursement for the project and disclose on ADB website Social Safeguards Audit report and Corrective Action plan disclosed on ADB website prior to first disbursement. Annual monitoring reports disclosed locally in a form and language understandable to affected persons and in full on ADB website. Semi-annual monitoring reports disclosed locally in a form and language understandable to affected people and in full on ADB website.

Category C (with minimal or no impacts)

Comply with ADB’s PIAL & National and State laws.

Comply with ADB’s PIAL & National and State laws. No further action is required

Comply with ADB’s PIAL & National and State laws. No further action is required

1 Category A subprojects will be excluded for ADB financing under this loan.

III ENVIRONMENTAL AND SOCIAL MANAGEMENT PROCEDURE

A Screening and Categorization 27 At an initial stage of identifying a subproject, the ESMU Manager (Environment and Social Management Unit) at CAL will apply ADB’s PIAL as per Annexure 2. If the investment in a subproject involves a prohibited activity, the senior management of CAL will be informed not to further consider the proposed subproject for ADB financing. Otherwise, the ESMU Manager will indicate the applicable environmental and social safeguards requirements for the proposed subproject to CAL management.

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28 At the subproject identification stage, the ESMU (assisted by in-house environment and social officers, or external consultant, if required) shall work with the project development team of CAL to make a rapid assessment of the likely environmental and involuntary resettlement impacts and effects on indigenous peoples due to the proposed subproject using the safeguard screening checklists as well as CAL’s corporate criteria for subproject siting and land acquisition. The screening checklists shall enable to determine the significance of potential environmental and/or social impacts associated with a specific subproject investment. The screening checklists along with CAL’s corporate considerations for subproject siting and land acquisition, in case of a new subproject is given as Annexures 5, 6, 7, 8 and 9. 29 Once, the checklists and the verification is completed proposed subproject will be assigned to one of the following categories by CAL, depending upon the significance of impacts and risks: 30 Environment Categorisation. A proposed subproject is assigned one of the following categories depending on the significance of the potential environmental impacts and risks: (i) Category A. A proposed subproject project is classified as category A, if it is

likely to have significant adverse environmental impacts that are irreversible, diverse, or unprecedented. These impacts may affect an area larger than the sites or facilities subject to physical works. An environmental impact assessment (EIA), including an environmental management plan (EMP), is required.

(ii) Category B. A proposed subproject is classified as category B if its potential adverse environmental impacts are less adverse than those of category A projects. These impacts are site-specific, few if any of them are irreversible, and in most cases mitigation measures can be designed more readily than for category A projects. An initial environmental examination (IEE), including an EMP, is required.

(iii) Category C. A proposed project is classified as category C if it is likely to have minimal or no adverse environmental impacts. An EIA or IEE is not required, although environmental implications are reviewed and subproject specific environment management plan is framed.

31 A project’s environment category is determined by the category of its most environmentally sensitive component, including direct, indirect, induced, and cumulative impacts. Each proposed subproject is scrutinized as to its type, location, scale, sensitivity and the magnitude of its potential environmental impacts. The level

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of detail and comprehensiveness of the EIA or IEE commensurate with the significance of the potential impacts and risks. 32 IR Categorisation. A proposed subproject is assigned one of the following categories depending on the significance of the probable involuntary resettlement impacts: (i) Category A. A proposed project is classified as category A, if it is likely to

have significant involuntary resettlement impacts. A resettlement plan, including assessment of social impacts, is required. The involuntary resettlement impacts of an ADB-supported project are considered significant, if 200 or more persons will experience major impacts, which are defined as (i) being physically displaced from housing, or (ii) losing 10% or more of their productive assets (income generating)

(ii) Category B. A proposed project is classified as category B, if it includes involuntary resettlement impacts that are not deemed significant. A resettlement plan, including assessment of social impacts, is required.

(iii) Category C. A proposed project is classified as category C, if it has no involuntary resettlement impacts. No further action is required.

33 IP Categorisation. A proposed project is assigned to one of the following categories depending on the significance of the potential impacts on Indigenous Peoples: (i) Category A. A proposed project is classified as category A if it is likely to have

significant impacts on Indigenous Peoples. An Indigenous Peoples plan (IPP), including assessment of social impacts, is required.

(ii) Category B. A proposed project is classified as category B if it is likely to have limited impacts on Indigenous Peoples. An IPP, including assessment of social impacts, is required.

(iii) Category C. A proposed project is classified as category C if it is not expected to have impacts on Indigenous Peoples. No further action is required.

34 Application of Safeguards Requirements. After screening and categorization, the ESMU Manager of CAL shall inform the Senior Management about the applicable requirements listed under Section II (B) and summarized in Table 1. All proposed subprojects with potential significant environmental, involuntary resettlement and/or indigenous peoples impacts (Category A) will be excluded for ADB financing. For subprojects that are categorized as B with respect to environmental, involuntary resettlement and/or indigenous peoples impacts, the ESMU either through in-house team or engagement of external consultant will

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prepare an Initial Environmental Examination (IEE) report and an environmental management plan (EMP), a resettlement plan (RP), and/or an indigenous peoples plan (IPP), as may be applicable; and submit these reports for review and approval of management of CAL. Upon management approval, CAL will submit these reports to ADB for review and approval prior to disbursement of funds for the subproject by ADB. Outline for an environmental assessment report (IEE), RP, and IPP are provided as Annexure 10, 11 & 12. 35 For Category C subprojects, monitor compliance with PIAL and national laws. CAL will submit these reports to ADB for review and approval, prior to disbursement of funds for the subproject by ADB. No further action on IR and IP issues is required for subprojects categorized as C. B Due Diligence 36 At an early stage of sub project preparation, the ESMU at CAL will identify potential direct, indirect, cumulative and induced environmental impacts on and risks to physical, biological, socioeconomic, and physical cultural resources and determine their significance and scope, in consultation with stakeholders, including affected people and local community stakeholders. For Category B projects, the ESMU will initiate action for preparation of environmental assessment (IEE for Category B) as early as possible in the project cycle either through in-house team or through engagement of external consultants. The outline of an environmental assessment/IEE report is given in Annexure 10.

37 Environmental Planning and Management. CAL will undertake due diligence that includes field level assessment commensurate to the impact severity. CAL will also review the applicable safeguard requirements. Findings of the due diligence will report to the ESMU officer of CAL. An outline of a due diligence report is provided as Annexure 13. 38 For proposed subprojects likely to be classified as category B based on potential environment, and impacts. The ESMU Manager or consultant will conduct an environmental assessment and prepare an IEE report following the outline in Annexure 8. The draft IEE report will be submitted to ADB for review and clearance before funds for the subproject is disbursed by ADB. If the review finds any gaps, CAL will address these concerns in the appropriate safeguard document prepared for the subproject. The draft IEE will be made publicly available before ADB disbursement of funds for the subproject. 39 In case subprojects will involve existing facilities or those under construction or with land acquisition in anticipation of the ADB financing for the subproject, CAL will commission an independent environment and/or social safeguards compliance

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audit, including on-site assessment, to identify past or present concerns related to impacts on the environment, involuntary resettlement, and Indigenous Peoples. The objective of the compliance audit is to determine whether actions were in accordance with ADB’s SPS and SR 1-3 and to identify and plan appropriate measures to address outstanding compliance issues. Where non-compliance is identified, the audit report and the corrective action plan (CAP), including a resettlement plan, will be prepared by CAL and submitted to ADB for review and clearance prior to approval by CAL and ADB disbursement of funds. The CAP will define necessary remedial actions, the budget for such actions, and the time frame for resolution of non-compliance. The audit report (including corrective action plan, if any) will be made available to the public in accordance with the information disclosure requirements of the ADB Safeguards Requirements 1–3. CAL will submit the audit report3 to ADB, ADB-financed project, to disclose on ADB’s website prior to ADB disbursement of funds for the subproject. 40 The IEE includes an environmental management plan (EMP) that addresses the potential impacts and risks identified by the environmental assessment. The EMP will include the proposed mitigation measures, environmental monitoring and reporting requirements, emergency response procedures, related institutional or organizational arrangements, capacity development and training measures, implementation schedule, cost estimates, and performance indicators. CAL will allocate funds for the implementation of the environmental management plan for the subproject. Prior to implementation, CAL shall ensure through a contract that its contractors/sub-contractors are bound and abide by the environmental management plan. The ESMU officer will monitor the EMP implementation. 41 Land Acquisition and Involuntary Resettlement. CAL will require small parcels of land or each of their proposed subprojects under ADB financing. CAL, as per its adopted corporate considerations for subproject siting and land acquisition (Annexure 5) will select and finalize the land parcels along road side, devoid of any household (s) or structure(s), free from vegetative cover having limited agricultural value at suitable locations and directly purchase from the voluntarily willing single land owner or group of land owners ranging between 2 to 4 on a ‘willing seller and willing buyer’ principle at prevailing market rate through direct negotiated settlement. The purchase of land will be a private transaction and shall not require intervention

3 A typical environmental and/or social audit report will include the following major elements: (i) executive summary; (ii)

facilities description, including both past and current activities; (iii) summary of national, local, and any other applicable laws, regulations, and standards; (iv) audit and site investigation procedure; (v) findings and areas of concern; and (vi) corrective action plan that provides the appropriate corrective actions for each area of concern, including costs and schedule. If a subproject involves an upgrade or expansion of existing facilities that has potential impacts on the environment, involuntary resettlement, and/or Indigenous Peoples, the IEE, RP, IPP as specified in Safeguards Requirements 1-3 will apply in addition to the compliance audit. These safeguards documents will reviewed by ADB and posted on ADB website prior to subproject’s approval by CAL and disbursement of funds.

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of Government’s land acquisition procedures and shall not trigger the safeguards requirements 2 and 3 of SPS, 2009. 42 However, in the unlikely event of CAL being unable to acquire land through direct negotiated settlements and land acquisition for subprojects with significant involuntary resettlement impacts (IR Category A) will be excluded for ADB financing. For Category B subprojects, the CAL will prepare a resettlement plan (RP) in accordance with National laws, and ADB’s SPS SR 2 on Involuntary Resettlement through its ESMU or by engaging external qualified consultants. For Category C projects, No further action will be considered. The outline of a resettlement plan for Category B projects is given in Annexure 11. The RP for Category B subprojects will be prepared based on following procedures. (i) Undertake a census of all displaced persons (DPs). DPs who are entitled to

receive compensation refer to those who are physically displaced (relocation, loss of residential land, or loss of shelter) and/or economically displaced (loss of land, assets, access to assets, income sources, or means of livelihoods) as a result of (a) involuntary acquisition of land, or (b) involuntary restrictions on land use or on access to legally designated parks and protected areas. Displaced persons in a project area could be of three types: (a) persons with formal legal rights to land lost in its entirety or in part; (b) persons who lost the land they occupy in its entirety or in part who have no formal legal rights to such land, but who have claims to such lands that are recognized or recognizable under national laws; and (c) persons who lost the land they occupy in its entirety or in part who have neither formal legal rights nor recognized or recognizable claims to such land.

(ii) Undertake detailed measurement survey (DMS) (see Table 2) of all losses of all DPs. At the same time, inform potential DPs, without discrimination, of the project, its likely impacts, and principles and entitlements as per national laws and ADB’s SPS SR2 on Involuntary Resettlement.

(iii) Undertake a socio economic survey (see Table 2) of the affected households whose land and/or structures are severely affected. If the impacts on all affected households are all marginal, at least 10% of the total affected households will be surveyed.

(iv) Determine the replacement cost for various types of affected assets. Determine the losses and corresponding entitlements, including costs, and prepare an entitlement matrix, which will be included in the RP.4

(v) Provide project and resettlement information to all persons affected in a form

and language that are understandable to them, and closely consult them on 4 The ESMF to be agreed with ADB will include a sample entitlement matrix.

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compensation and resettlement options, including relocation sites and economic rehabilitation.

(vi) Prepare the draft RP with time-bound implementation schedule, procedures for grievance mechanism and monitoring evaluation, and a budget. ADB’s outline of an RP will be followed.

(vii) Prior to ADB disbursement for the subproject, disclose the draft and final RP in accordance with ADB's Public Communications Policy5 to the affected communities and on ADB's website.

Table 2 : Surveys for RP Preparation

Detailed Measurement Survey (DMS)

The census and detailed measurement survey (DMS) of lost assets will collect data on the affected assets from 100% of DPs following detailed engineering design. The data collected during the DMS will constitute the formal basis for determining AP entitlements and levels of compensation. For each AP, the scope of the data will include: • Total and affected areas of land, by type of land assets; • Total and affected areas of structures, by type of structures (main or

secondary); • Legal status of affected land and structure assets, and duration of tenure

and ownership; • Quantity and types of affected crops and trees; • Quantity of other losses, e.g. , business or other income, jobs or other

productive assets; estimated daily net income from informal shops; • Quantity/area of affected common property, community or public assets,

by type; • Summary data on households, by ethnicity, gender of head of household,

household size, primary and secondary source of household income, viz-a-viz poverty line, income level, whether household is headed by women, elderly, disabled, or poor;

• Identify whether affected land or source of income is primary source of income; and

• AP knowledge of the subproject and preferences for compensation and, as required, relocations site and rehabilitation measures.

Socioeconomic Survey

The socioeconomic survey (SES) will collect information from 10% of DPs whose land/income generating assets and/or structures will be severely affected, disaggregated by gender and ethnicity. The purpose of the socioeconomic survey is to provide baseline data on households to assess resettlement impacts, and to be sure proposed entitlements are appropriate, and to be used for resettlement monitoring. The scope of data to be collected includes; A. Household head,: name, sex, age, livelihood or occupation, income,

education and ethnicity; B. Household members: number, livelihood or occupation, school or age

5 ADB, 2005, Public Communications Policy, Manila.

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children and school attendance and literacy, disaggregated by gender; C. Living conditions: access to water, sanitation and energy for cooking and

lighting; ownership of durable goods; and D. Access to basic services and facilities.

43 Entitlements and Compensation Standards. For the losses associated with land acquisition or temporary land occupation of the subproject, an entitlement matrix will be prepared as a guide to compensation payments. 44 Compensation for Lost Assets and Income. Land losses will be compensated as follows: (i) people losing agricultural and residential land will be compensated through

“land for land" arrangements wherever feasible; (ii) if "land for land" arrangements are not feasible, compensation will be provided

in cash, the person losing agricultural land will be paid cash compensation for lost land as per the latest applicable circle rates for the sub project location and determined by the competent District Authorities.

45 Loss of housing and structures will be avoided. However, if unavoidable, house losses and loss of other structures will be directly compensated in cash at replacement cost free of demolition costs and salvaged materials. In case of agricultural lands with standing crops, crop losses will be compensated directly to the individual farmer in cash at prevailing/current market prices. Business losses, including transfer and downtime costs, will be paid directly to the business owners. Regarding temporary and permanent land acquisitions for its projects, the CAL will make a prompt and complete payment of the land compensation fee due in accordance with the agreed upon compensation rate.

46 Income and Livelihoods Restoration. The land requirements of subprojects are minimal and therefore, significant economic displacement is unlikely/not anticipated. If incomes and livelihoods are affected and require rehabilitation, preferences of DPs will be considered in developing income and livelihood restoration strategies. This may include land redistribution, investment of compensation by the community particularly those involved in the land redistribution, investment of subsidy by individual DPs, training and employment on project related activities, as may be applicable. 47 Assistance to Vulnerable Groups. Compensation and other assistance to vulnerable DPs will be conceived, planned and implemented with the informed participation of affected communities. Vulnerable households will receive assistance for house relocation and reconstruction, to be organized by the relevant village or

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township committee. 48 Preparing the Indigenous Peoples Plan. If project classification and social impact assessment indicate that a subproject will have a positive or negative impacts on ethnic minorities and indigenous people. Category A Subprojects for IPs will be excluded for ADB financing. For Category B projects for IPs, CAL through its ESMU will engage qualified experts to carry out a social impact assessment (SIA) and prepare an indigenous people plan in accordance with the agreed ESMF and ADB’s SPS SR 3 on Indigenous Peoples. the social impact assessment shall cover the degree of subproject’s own complexity and impact on ethnic minorities and indigenous people, regardless of whether the impact is positive or negative. The SIA will provide a baseline socioeconomic profile of the indigenous groups in the project area and project impact zone; assess their access to and opportunities to avail themselves of basic social and economic services; assess the short- and long-term, direct and indirect, and positive and negative impacts of the subproject on each group’s social, cultural, and economic status; assess and validate which indigenous groups will trigger the Indigenous Peoples policy principles; and assess the subsequent approaches and resource requirements for addressing the various concerns and issues of projects that affect them. The level of detail and comprehensiveness of the SIA will be proportional to the complexity of the proposed project and commensurate with the nature and scale of the proposed project’s potential effects on Indigenous Peoples, whether positive or negative. No further action will be required for Category C subprojects for IPs.

49 The indigenous people plan will essentially to include: (i) the affected indigenous people and ethnic minorities can obtain social and economic benefits; (ii) once it is confirmed that a subproject impacts indigenous people and ethnic minorities, the IP shall exercise maximum efforts to minimize the negative impact. If avoidance is impossible, IP will list out, based on its meaningful consultation with indigenous people and ethnic minorities, measures to mitigate and compensate for the negative impact in the indigenous people plan, commensurating to project’s own complexity and potential impacts. The outline of an indigenous people plan is given in Annexure 12. C Information Disclosure, Consultation and Participation 50 In line with ADB’s SPS and Public Communications Policy, CAL will ensure that it will make relevant information (whether positive or negative) about social and environmental safeguard issues available in a timely manner, in an accessible place, and in a form and language(s) understandable to affected people and to other stakeholders, including the general public, so they can provide meaningful inputs into project design and implementation.

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51 CAL through its ESMU will conduct meaningful consultation with various stakeholders. Meaningful consultation is a process that shall (i) begin early in the project preparation stage and is carried out on an ongoing basis throughout the project cycle; (ii) provide timely disclosure of relevant and adequate information that is understandable and readily accessible to affected people; (iii) is undertaken in an atmosphere free of intimidation or coercion; (iv) is gender inclusive and responsive, and tailored to the needs of disadvantaged and vulnerable groups; and (v) enable incorporation of all relevant views of affected people and other stakeholders into decision making, such as project design, mitigation measures, the sharing of development benefits and opportunities, and implementation issues. 52 CAL through its ESMU shall engage with communities, groups, or people affected by proposed projects, and with civil society through information disclosure, consultation, and informed participation in a manner commensurate with the risks to and impacts on affected communities. 53 The consultation process will employ a range of formal and informal consultative methods such as in-depth interviews, public meetings, focus group discussions etc. examples of key informants to be consulted, during the preparation and implementation, include the following stakeholders: (i) Heads and members of households likely to be affected (ii) Affected households belonging to the vulnerable groups (iii) Host communities (iv) Women in the affected as well as host communities (v) Local voluntary organizations and NGOs, if present, (vi) Relevant Government agencies and departments, 54 Women’s participation will be ensured by involving them in public consultation at various level and stages of project preparation and by arrangements, which would enhance their ability to attend such meetings. CAL will ensure that views of the affected persons, particularly those vulnerable, are looked into and addressed in relevant plans. 55 If a subproject has land acquisition and involuntary resettlement impacts, each resettlement plan shall be prepared and implemented in close consultation with those affected, and involve surveys and community meetings. Compensation and assistance level will be determined in consultation with the affected persons and their representatives. The compensation amounts will be finalized only after agreements with affected persons is reached. Resettlement information including measurement of losses, detailed asset valuations, entitlements and special provisions, grievance procedures, timing of payments and displacement schedule will be disclosed to the

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affected people. The disclosure will be in a manner accessible to the affected people where there are differing levels of literacy. Plans in local language will be made available to the affected people for reasonable periods of at least three months prior to actual dislocation. ADB will review and approve the resettlement plans prior to disbursement for all such subprojects involving involuntary resettlement impacts. 56 CAL through its ESMU will hold meaningful consultation with the affected indigenous people and ethnic minorities to ensure that they will participate after being fully informed. CAL will design, implement and monitor activities to prevent projects from adversely affecting indigenous people and ethnic minorities. If such impact cannot be avoided, CAL will work to mitigate the negative impact, or make adequate compensations for it. Also, CAL will enable indigenous people and ethnic minorities to share the benefits of subprojects in a way, which suits their cultural traditions. (i) CAL will submit final or updated initial environmental examinations,

resettlement plans, and Indigenous Peoples plans following documents for posting on ADB website before CAL approval of the subproject final or updated environmental impact assessments and/or initial environmental examinations, resettlement plans, and Indigenous Peoples plans

(ii) environmental, involuntary resettlement, and Indigenous Peoples monitoring reports prepared during project implementation

D Grievance and Redress Mechanism 57 CAL will establish a Grievance and Redress Mechanism to address any possible concerns and dissatisfaction of affected groups regarding the social and environmental impact of its subprojects, and seek an appropriate and amicable solution. CAL shall promptly respond to the affected groups, be transparent and free of gender discrimination, and adapt to the cultural traditions of the affected groups and communities. CAL shall enable different affected groups to express their opinions, with no fear of reprisal. The ESMU will be responsible for resolving appeals, complaints, and disputes concerning the environmental and social impacts of subprojects, on behalf of CAL. 58 For projects with involuntary resettlement impacts, CAL will describe and establish local level complaints and grievance procedures in each RP. Grievance redress mechanisms for affected people will be established with adequate representation from affected people, vulnerable groups, and gender. The grievances will be redressed at the subproject level in a consultative manner and with full participation of the affected households, or their representatives, along with CAL and local self-government representatives, if required.

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59 The basic grievance procedures shall be the following; Stage 1. If any AP is aggrieved by any aspect of the land acquisition and

resettlement, he/she can state his/her grievance and appeal to the head of the specific subproject. If an oral appeal is made, the head of the specific subproject will record it on paper and process it for making a decision on or resolve it in two weeks. The AP will be informed of the result via written notice.

Stage 2. If the aggrieved AP is not satisfied with the decision in Stage 1, he/she can

appeal to the ESMU at CAL’s corporate office after receiving the decision by the head of the specific subproject. The ESMU manager will reach a decision in two weeks and AP will be informed of the result via written notice.

Stage 3. If the aggrieved AP is still not satisfied with the decision of ESMU Manager

at CAL’s corporate office, he/she will appeal to the office of the CAL’s Chairman cum Managing Director after receiving the decision from ESMU Manager. The Chairman cum Managing Director of CAL, with the approval of the Board of Directors will reach a decision in two weeks. The AP will be informed of the result via written notice.

Stage 4. If the AP is still dissatisfied with the decision of the CAL’s Chairman cum

Managing Director, he/she will appeal to the civil court according to the civil procedural law after receiving the decision from the CAL’s Chairman cum Managing Director and decision of the court shall be the final and binding on both CAL and affected persons.

60 CAL will inform the local community and the affected people of the grievance and appeal procedure through public information /group meetings, the resettlement information brochure and other media, so that they can fully understand their rights for grievance and appeal in a court of law. 61 If a subproject affects indigenous peoples or ethnic minority communities, a grievance mechanism will be established that will promptly respond to the demands and dissatisfaction of the affected indigenous peoples. It shall also adopt an easy-to-understand and transparent procedure, be free of gender discrimination, and adapt to the cultural traditions of the affected indigenous people. E Gender Mainstreaming and Compliance with Core Labor Standards 62 During subproject design, the following specific actions will be targeted to mainstream gender development as well as ensure compliance with the core labor

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standards: (i) Undertake gender analysis as part of the environmental and social impact

assessment, if applicable for each subproject to be financed by ADB. If the Project is Category A or B for IR, the census of affected people and detailed measurement survey of lost assets will include data on gender and vulnerability. If there are IR-affected vulnerable groups (e.g. widows and single female households with dependents, disabled, and elderly, among others) were identified as adversely affected, special assistance will be provided to them.

(ii) Conduct meaningful consultations that are gender inclusive and responsive, and tailored to the needs of disadvantaged and vulnerable groups. This means that when conducting the environmental and social assessment CAL will include representation from women during the public consultations to discuss the potential adverse and beneficial impacts of the project on them and design measures to address any potential issues affecting them (e.g. health and safety measures). The findings of these consultations will have to be documented in the environmental assessment or IEE reports to be submitted to ADB prior to disbursement for the subproject.

(iii) CAL’s civil works contractors, subcontractors and other providers of goods and services will employ local labor whenever possible and ensure compliance with national labor laws and relevant core labor standards as discussed in Annexure 3 & 9. With respect to labor and working conditions of women, CAL’s civil works contractors, subcontractors and other providers of goods and services will comply with the core labor standards which includes prohibition of any form of discrimination against women during hiring and providing equal work for equal pay for men and women.

F Third Party Due Diligence 63 All subprojects financed by ADB will be subjected to third party independent safeguards due diligence, depending on the complexity of the proposed subproject, through an external consultant. The due diligence will include field level assessment commensurating with impact severity, review of regulatory compliances, among others. All findings of the due diligence will be reflected in the report to the attention of the senior management of CAL, which will be further shared with ADB along with an Action taken Report by CAL. An outline of a due diligence report is provided as Annexure 13. 64 For the proposed subprojects likely to be classified as category B for either of environment, involuntary resettlement, or indigenous peoples impacts, CAL will refer the subproject to ADB and provide relevant environmental and social information to ADB early in its due diligence process, and submit the draft IEE report, RP, and/or IPP to ADB for review and clearance before funds for the subproject is disbursed by

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ADB. If the review finds any gaps, CAL will address these concerns in the appropriate safeguard document prepared for the subproject. All draft RPs, IPPs and IEEs will be made publicly available before ADB disbursement of funds for the subproject.

65 For subprojects involving existing facilities or those under construction or with land acquisition in anticipation of the ADB financing for the subproject, CAL will commission an independent environment and/or social safeguards compliance audit, including on-site assessment, to identify past or present concerns related to impacts on the environment, involuntary resettlement, and Indigenous Peoples. The objective of the compliance audit is to determine whether actions were in accordance with ADB’s SPS and SR 1-3 and to identify and plan appropriate measures to address outstanding compliance issues. Where non-compliance is identified, the audit report and the corrective action plan (CAP), including a resettlement plan, will be prepared by CAL and submitted to ADB prior to disbursement for the subproject. The CAP plan will define necessary remedial actions, the budget for such actions, and the time frame for resolution of non-compliance. The audit report (including corrective action plan, if any) will be made available to the public in accordance with the information disclosure requirements of the Safeguards Requirements 1–3. CAL will submit the audit report to ADB to disclose on ADB’s website prior to ADB disbursement of funds for the subproject. A typical environmental and/or social audit report will include the following major elements: (i) executive summary; (ii) facilities description, including both past and current activities; (iii) summary of national, local, and any other applicable laws, regulations, and standards; (iv) audit and site investigation procedure; (v) findings and areas of concern; and (vi) corrective action plan that provides the appropriate corrective actions for each area of concern, including costs and schedule. If a subproject involves an upgrade or expansion of existing facilities that has potential impacts on the environment, involuntary resettlement, and/or Indigenous Peoples, the IEE, RP, IPP as specified in Safeguards Requirements 1-3 will apply in addition to the compliance audit. These safeguards documents will reviewed by ADB and posted on ADB website prior to disbursement of funds for the subproject. G Compliance Monitoring and Reporting 66 After a subproject is approved for financing by ADB, the ESMU shall (i) ensure that obligations of compliance with all applicable environmental and social safeguards requirements are planned and implemented the subproject and CAL will promptly report to ADB any actual or potential breach of the compliance requirements after becoming aware of it. For category B or C subprojects, the ESMU Manager (assisted by environment and social officer, or consultant) will visit the site to monitor the implementation of EMP, RP, and/or IPP, as applicable. CAL will submit a semi-annual monitoring report for each Category B subproject covering the

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implementation of the EMP RP and IPP, as may be required. The report will also cover the status of compliance with the applicable safeguard requirements. 67 The ESMU Manager will prepare an annual environmental and social performance report (AESPR) covering all subprojects, financed by ADB and the status of implementing the ESMS. CAL will submit the subproject environmental and social monitoring reports and AESPR to ADB as well as to regulatory bodies as per regulatory compliance requirements. These monitoring reports will be posted on ADB website upon receipt. An outline of a subproject monitoring report and AESPR is given in Annexure 14. The ESMU, through CAL management should ensure that ADB is notified if and when there is a material environmental or social safeguards non-compliance as well as ADB is notified if and when the responsible ESMU staff has been changed or replaced with new staff.

IV ORGANIZATIONAL STRUCTURE AND RESOURCES FOR ESMF IMPLEMENTATION

68 In order to ensure an effective implementation of ESMF, CAL shall establish an Environmental and Social Management Unit (ESMU). The ESMU will be headed by a full time Environmental and Social Safeguards Officer, designated as ESMU Manager having post graduate qualification and atleast 10 years of professional experience in dealing with environmental and social safeguard issues of industrial/agricultural sector, preferably with at least 5 years exposure on safeguards requirements of infrastructure and/or industrial or agricultural projects assisted by MFIs like ADB and World Bank. 69 The ESMU shall be provided with adequate support staff having requisite technical qualifications and experience in both environmental and social management issues. The ESMU team will be encouraged to attend ADB-sponsored or approved environmental and social safeguard training related to compliance and monitoring activities. In addition to ESMU, CAL will also maintain a pool of qualified environmental and social consultants, who can be engaged on requirement basis to assist in conducting environmental and social reviews as appropriate. 70 The ESMU Manager shall report to CAL’s senior management. The ESMU Manager will work closely with the CAL’s senior management to ensure that adequate resources have been committed for effective implementation of the ESMF and procedures. The ESMU will be responsible for implementing and overseeing project facility specific environmental regulatory compliance, safeguards implementation management, performance and review at all CAL’s project facilities, including independent safeguards due diligence on its facilities, periodical monitoring, review and preparation of annual environmental performance report for submission to National and State regulatory bodies as well as to ADB.

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LIST OF ANNEXURES

Annexure 1 Existing and Proposed Facilities by CAL under ADB Financing

Annexure 2 Prohibited Investment Activities List of ADB

Annexure 3 ADB’S Social Protection Requirements

Annexure 4 Land Acquisition Policy by GIDC

Annexure 5 CAL’s Corporate Consideration for Siting and Land Purchase for New Facilities

Annexure 6 Environmental Assessment/Screening Checklist

Annexure 7 Involuntary Resettlement Screening Checklist

Annexure 8 Indigenous Peoples Impact Screening Checklis

Annexure 9 Gender and Labor Checklist

Annexure 10 Outline of an Environmental Impact Assessment Report

Annexure 11 Outline of a Resettlement Plan

Annexure 12 Outline of an Indigenous Peoples Plan

Annexure 13 Outline of Environmental Due Diligence Report on Project Facilities

Annexure 14 Annual Environmental and Social Performance Report

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Annexure 1

EXISTING AND PROPOSED FACILITIES BY CAL UNDER ADB FINANCING

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Annexure 1

EXISTING AND PROPOSED FACILITIES BY CAL UNDER ADB FINANCING

Table1 : Existing Facilities of CAL for Fruits and Vegetables processing Sl. No.

Facilities Nos. Unit Capacity

Location

1 Cooling Chambers (Pack House & Ripening Chamber)

4 15 ton each

Rajkot. Gujrat

Multi-chambered CA Cold Storage 1500 ton 2 CA Cold Storage 1 2000 ton Borsad, Gujrat Multi-chambered CA Cold Storage

with sorting & grading facilities 2200 ton

3 Ripening Chambers 3 8 ton each Anand, Gujrat

4 Ripening Chambers 4 15 ton each Delhi

5 Ripening Chambers Cold Storage with Pack House

3 8 ton each 100 ton

Solan (*ARDC), Himachal Pradesh

Table 2 : Types of Proposed Facilities by CAL under ADB Financing

Sl. No. Type of Project Facility Unit

Capacities Location

1 Individual Quick Frozen (IQF) Project Facility (1 No.)

i) ii) iii) iv)

Vegetable Processing Line Freezing Line Frozen Storage CA Cold Storage

2 ton/hr 2 ton/hr 1000 ton 1000 ton

Gundasara Village, Taluka Gondal, Distt. Rajkot, Gujrat

2 Controlled Atmosphere (CA) Storage (1 No.)

i) ii) iii)

CA store Pre-cooling Chamber Holding Chamber

5000 ton 20 ton/day 500 ton

Palanpur, Gujarat State

3 Agri-Retail Collection Centers (ARCC) (5 Nos.)

i) ii) iii) iv) v) vi)

Grading, Packing Line Pre-cooling Chamber Holding Cold Store Reefer Van Warehouse Laboratory (Soil/Water/Food)

1 ton/hr 20 ton/day 100 ton 10 ton 500 ton

--

Navsari, Junagadh, Prantij, Rajpipla, Borsad, all in Gujarat State

4 Agri-Distribution Centers (ADC) (5 Nos.)

i) ii) iii)

Sorting, Packing, Grading Line Pre-cooling Chamber Holding Cold Store

1 ton/hr 30 ton/day 300 ton

Ahmedabad, Jaipur, Indore, Delhi, Ludhiana, Jalandhar,

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Annexure 2

PROHIBITED INVESTMENT ACTIVITIES LIST OF ADB

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Annexure 2

ADB PROHIBITED INVESTMENT ACTIVITIES LIST The following do not qualify for Asian Development Bank financing: (i) production or activities involving harmful or exploitative forms of forced labor1 or child

labor;2 (ii) production of or trade in any product or activity deemed illegal under host country

laws or regulations or international conventions and agreements or subject to international phaseouts or bans, such as (a) pharmaceuticals,3 pesticides, and herbicides,4 (b) ozone-depleting substances,5 (c) polychlorinated biphenyls6 and other hazardous chemicals,7 (d) wildlife or wildlife products regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora,8 and (e) transboundary trade in waste or waste products;9

(iii) production of or trade in weapons and munitions, including paramilitary materials; (iv) production of or trade in alcoholic beverages, excluding beer and wine;10 (v) production of or trade in tobacco;10 (vi) gambling, casinos, and equivalent enterprises;10 (vii) production of or trade in radioactive materials,11 including nuclear reactors and

components thereof; (viii) production of, trade in, or use of unbonded asbestos fibers;12 (ix) commercial logging operations or the purchase of logging equipment for use in

primary tropical moist forests or old-growth forests; and (x) marine and coastal fishing practices, such as large-scale pelagic drift net fishing and

fine mesh net fishing, harmful to vulnerable and protected species in large numbers and damaging to marine biodiversity and habitats.

1 Forced labor means all work or services not voluntarily performed, that is, extracted from individuals under threat of force

or penalty. 2 Child labor means the employment of children whose age is below the host country’s statutory minimum age of

employment or employment of children in contravention of International Labor Organization Convention No. 138 “Minimum Age Convention” (www.ilo.org).

3 A list of pharmaceutical products subject to phaseouts or bans is available at http://www.who.int. 4 A list of pesticides and herbicides subject to phaseouts or bans is available at http://www.pic.int. 5 A list of the chemical compounds that react with and deplete stratospheric ozone resulting in the widely publicized ozone

holes is listed in the Montreal Protocol, together with target reduction and phaseout dates. Information is available at http://www.unep.org/ozone/montreal.shtml.

6 A group of highly toxic chemicals, polychlorinated biphenyls are likely to be found in oil-filled electrical transformers,

capacitors, and switchgear dating from 1950 to 1985. 7 A list of hazardous chemicals is available at http://www.pic.int. 8 A list is available at http://www.cites.org. 9 As defined by the Basel Convention; see http://www.basel.int. 10 This does not apply to project sponsors who are not substantially involved in these activities. Not substantially involved

means that the activity concerned is ancillary to a project sponsor's primary operations. 11 This does not apply to the purchase of medical equipment, quality control (measurement) equipment, and any equipment

for which ADB considers the radioactive source to be trivial and adequately shielded. 12 This does not apply to the purchase and use of bonded asbestos cement sheeting where the asbestos content is less than

20%.

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Annexure 3

ADB’S SOCIAL PROTECTION REQUIREMENTS

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Annexure 3

ADB’S SOCIAL PROTECTION REQUIREMENTS 1. ADB’s Social Protection Strategy requires CAL to comply with applicable labor

laws in relation to the Project. Projects should take the following measures to comply with the core labour standards:

(i) carry out its activities consistent with the intent of ensuring legally permissible

equal opportunity, fair treatment and non discrimination in relation to recruitment and hiring, compensation, working conditions and terms of employment for its workers (including prohibiting any form of discrimination against women during hiring and providing equal work for equal pay for men and women engaged by the CAL;

(ii) not restrict its workers from developing a legally permissible means of

expressing their grievances and protecting their rights regarding working conditions and terms of employment; and

(iii) engage contractors and other providers of goods and services: a. who do not employ child labor or forced labor; b. who have appropriate management systems that will allow them to operate in

a manner which is consistent with the intent of (A) ensuring legally permissible equal opportunity and fair treatment and non discrimination for their workers, and (B) not restricting their workers from developing a legally permissible means of expressing their grievances and protecting their rights regarding working conditions and terms of employment; and

c. whose subcontracts contain provisions, which are consistent with paragraphs (i) and (ii) above.

2. The above measures should be incorporated in the portfolio companies’

environmental (and/or social) management plan (ESMP). 3. The monitoring and reporting requirements in the ESMP should also state that

the CAL will provide an annual report on its compliance with the measures identified above. CAL should monitor the compliance of the CAL’s SPV companies and include this in this in the Annual Environmental and Social Performance Report.

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Annexure 4

LAND ACQUISITION POLICY BY GIDC

31

Annexure 4

32

Annexure 5

CAL’S CORPORATE CONSIDERATION FOR SITING AND LAND PURCHASE FOR NEW FACILITIES

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Annexure 5

Corporate Considerations of Champion Agro Limited for

Siting of New Facilities and Land purchase to mitigate Social Impacts

A Background

1. CAL is presently seeking a corporate loan from ADB to scale up its operations through investment in horticulture value chain infrastructure facilities (Project Facilities). In accordance with ADB’s Safeguard Policy Statement (2009), the requirements for general corporate finance apply in addition to the applicable safeguard requirements for transactions involving the implementation of Project Facilities, proposed by CAL. 2. In order mitigate the likely social and involuntary impacts due to siting and land purchase for its newly proposed facilities under ADB financing, CAL has adopted the certain considerations, which shall be applied during siting and land purchase transactions. The considerations would enable CAL to avoid the social impacts as a result of its proposed facilities and also would enable to be consistent with requirements of SPS 2009, ADB.

B Land Requirements for Proposed Facilities 3. CAL’s expansion plans to build more project facilities in Gujarat and elsewhere across India, will require acquisition of small parcels of land for each project facility. The land requirements vary between 4000 sq. metres (0.4 Ha) to 12000 Sq. metres (1.2 Ha) and is available in Gujarat and elsewhere either from a single land owner and or group of land owners ranging between 2 to 4, depending upon the location, individual owner’s land holding and willingness to sell the land in part or full. C Corporate Considerations for siting and Land Purchase 4. CAL will identify and select the required parcel of land based on its business operations and land requirements for establishing the project facility at a specific location and comply the following considerations, to extent possible • Land shall be road facing atleast on any one side with reasonably good connectivity to

State Highways and National Highways

• Land parcel should not be a prime and fertile agricultural land, preferably a barren land or having a low agricultural potential

• Land parcel shall be devoid of any household(s), structures, free from vegetative cover

• CAL shall screen the location to determine whether the land belongs to any person of indigenous(Scheduled Tribe or ethnic minorities) group and directly or indirectly affects

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his or her dignity, human rights, livelihood systems or culture, if any due to proposed land purchase transaction

• Required land parcel shall preferably be owned by one owner but in case of more than one owner (but preferably not exceeding four), all of them should be voluntarily willing to sell the land parcel to CAL on a mutually negotiated rates

5. In case the landowner(s) belongs to an Indigenous Group, CAL’s shall exercise its resources to identify an alternative suitable land, in order to avoid purchase of land parcel belonging to an individual or group of indigenous people, to the extent possible. If unable to find an alternate land, suiting its requirements, it shall review project facility planning and design and explore options to minimize land requirements. 6. After exercising options to minimize land requirements, CAL shall initiate dialogue with the individual or group of land owner(s) belonging to indigenous group to seek their consent in writing to purchase their land through direct negotiations for proposed project facilities. 7. In case the landowner(s) belongs to a scheduled tribe/group or an indigenous group, it shall be the responsibility of the landowner(s) to get required mandatory permission from the competent authority at District level, prior to negotiations, transaction and transfer of title. 8. CAL shall not apply coercion directly or indirectly on to potential sellers and shall conduct transaction in a transparent, consistent and equitable manner and ensure that transaction leads to better income and livelihood status of the potential seller of land. 9. CAL through their legal experts will issue a public notice in local news paper(s) about its intention to purchase the identified land parcel and invite objection(s), if any from person/bodies/institutions against the said land transaction, within a stipulated time period. All objections received will be duly addressed through the legal channel(s). If no objections are received, CAL will initiate further steps to finalize the terms of the deal and transfer of title as per the established procedures of the District Authorities. If the objections are far too serious, CAL will decide to terminate its intention of purchase and initiate to look out for another suitable land parcel. D Consistent to ADB Safeguards 9. CAL consideration to select and purchase land for its expansion of its existing facility and/ or for establishing new facilities through this “willing seller and willing buyer” principle and negotiated rate settlement without involuntary resettlement, economic displacement and involuntary physical displacement from land or housing will not trigger Safeguard Requirements 2 and 3: of SPS 2009 of ADB.

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Annexure 6

ENVIRONMENTAL ASSESSMENT/SCREENING CHECKLIST

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Annexure 6 ENVIRONMENTAL ASSESSMENT CHECKLIST: AGROBUSINESS PROJECT FACILITY

Subproject Title: Location:

SCREENING QUESTIONS Yes No REMARKS A. Project Siting Is the project area…

Densely populated?

Heavy with development activities?

Adjacent to or within any environmentally sensitive areas?

• Cultural heritage site

• Protected Area

• Wetland

• Mangrove

• Estuarine

• Buffer zone of protected area

• Special area for protecting biodiversity

• Bay

B. Potential Environmental Impacts Will the Project cause… impairment of historical/cultural monuments/areas and loss/damage to these sites?

interference with other utilities and blocking of access to buildings; nuisance to neighboring areas due to noise, smell, and influx of insects, rodents, etc.?

dislocation or involuntary resettlement of people

impairment of downstream water quality due to inadequate wastewater treatment or release of untreated wastewater/sewage?

overflows and flooding of neighboring properties with raw wastewater/sewage?

environmental pollution due to inadequate sludge disposal or industrial waste discharges illegally disposed in sewers?

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SCREENING QUESTIONS Yes No REMARKS noise and vibration due to blasting and other civil works?

discharge of hazardous materials into sewers, resulting in damage to sewer system and danger to workers?

inadequate buffer zone around pumping and treatment plants to alleviate noise and other possible nuisances, and protect facilities?

social conflicts between construction workers from other areas and community workers?

road blocking and temporary flooding due to land excavation during the rainy season?

noise and dust from construction activities?

traffic disturbances due to construction material transport and wastes?

temporary silt runoff due to construction?

hazards to public health due to overflow flooding, and groundwater pollution due to failure of wastewater/sewage treatment system?

deterioration of water quality due to inadequate sludge disposal or direct discharge of untreated wastewater?

contamination of surface and ground waters due to sludge disposal on land?

health and safety hazards to workers from toxic gases

and hazardous materials which maybe contained in wastewater/sewage flow and exposure to pathogens in wastewater/sewage and sludge?

OVERALL ENVIRONMENTAL IMPACT RATING - CATEGORIES1

A- High Significance B- Medium/Low Significance C- Insignificant

Prepared by:(Subproject Environmental Staff) Name and Signature: _____________________ Designation: _____________________ Date: _____________________ Reviewed by: (CAL Environmental Staff) Name and Signature: _____________________ Designation: _____________________ Date: _____________________

1 For details, refer to ADB's Environmental Management Guidelines (2003)

http://www.adb.org/documents/guidelines/environmental_assessment/environmental_assessment_guidelines.pdf

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Annexure 7

INVOLUNTARY RESETTLEMENT SCREENING CHECKLIST

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Annexure 7

INVOLUNTARY RESETTLEMENT SCREENING CHECKLIST

Land Acquisition and Resettlement Issues

Yes No Not Known

Remarks

A. For Subprojects with Prior Land Acquisition or Resettlement

1. Did the subproject require any permanent land acquisition or temporary land occupation for the construction of plant facilities and pipeline network? If yes, provide information on

Please determine the arrangements made by the local/provincial government on matters pertaining to land acquisition, compensation and resettlement and rehabilitation. If there are outstanding issues that are likely to be noncompliant with ADB's Safeguards Policy Statement and the Resettlement Framework in this ESMS, prepare a corrective action plan (CAP)

− Name of village/s and county where plant is located and from whom land was acquired

− Total land area occupied by the plant, and affected by the construction of discharge canals and pipeline network

− Status of land acquisition for the facility/plant

− Information on status of payment of compensation

− Type of land acquired (i.e. land classification prior to plant construction)

− Amount paid by the government agency to original land users for land and/or fixed assets

− Amount paid by CAL to the local government for land allocated to the subproject

− Name of local government agency who handled land acquisition and resettlement activities

− Number of persons/households affected by land acquisition by the Government

2. During the ground clearing works for the plant, was there any

− Demolition of residential houses and relocation of affected persons?

− Demolition of commercial structures or any other structures?

− Loss of businesses and other livelihoods?

− Loss of crops and trees 3. Are there any outstanding grievances

or unpaid compensation?

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B. For Subprojects with New/Additional

Land Acquisition or Resettlement

1. Will the subproject require acquisition of collectively owned land, state-owned land or land held by community under traditional, customary and usufruct rights?

If yes, compensation at replacement cost may be required and details outlined in a resettlement plan (RP)

2. Will access to common properties (e.g. burial grounds, community facilities, public grazing lands, forest, etc) be restricted by subproject activities?

If yes, mitigation measures accepted by the affected community need to be outlined in an RP.

3. Will land acquisition result in loss of housing and/or affect other structures?

If yes, prepare a resettlement plan (RP).

4. Will agricultural activities, income and livelihoods of affected be affected by the operation of the wastewater treatment and renewable/reused water supply plants and pipeline networks?

If yes, livelihood restoration measures should be developed and described in the RP.

5. Are there any non-titled people whose living arrangements and/or livelihoods will be affected by the subproject?

6. Will there be loss of agricultural plots? 7. Will there be losses of crops, trees, and

fixed assets?

8. Will there be loss of businesses or enterprises?

9. Will there be loss of incomes and livelihoods?

10. Will any social or economic activities be affected by land use-related changes?

11. If involuntary resettlement impacts are expected:

– Are national and local laws and regulations compatible with ADB’s Involuntary Resettlement policy?

If there are gaps, subproject specific resettlement principles and measures need to be incorporated in the RP.

– Will coordination between the CAL and Government agencies be required to deal with land acquisition?

If yes, institutional arrangements to deal with resettlement planning and implementation need to be outlined in the RP.

IR Impact Category Plan

Required Prepared by: (Subproject Staff) Name and Signature: Designation: Date: A Significant Impact RP/CAP

B Not Significant RP/CAP Approved by: (CAL ESU Staff) Name and Signature: Designation: Date: C No impact None

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Annexure 8

INDIGENOUS PEOPLES IMPACT SCREENING CHECKLIST

45

Annexure 8

INDIGENOUS PEOPLES IMPACT SCREENING CHECKLIST

KEY CONCERNS

(Please provide elaborations on the Remarks column)

YES NO NOT KNOWN Remarks

A. Indigenous Peoples Identification

1. Are there socio-cultural groups present in or use the project area who may be considered as "tribes" (hill tribes, schedules tribes, tribal peoples), "minorities" (ethnic or national minorities), or "indigenous communities" in the project area?

2. Are there national or local laws or policies as well as anthropological researches/studies that consider these groups present in or using the project area as belonging to "ethnic minorities", scheduled tribes, tribal peoples, national minorities, or cultural communities?

3. Do such groups self-identify as being part of a distinct social and cultural group?

4. Do such groups maintain collective Annexures to distinct habitats or ancestral territories and/or to the natural resources in these habitats and territories?

5. Do such groups maintain cultural, economic, social, and political institutions distinct from the dominant society and culture?

6. Do such groups speak a distinct language or dialect? 7. Has such groups been historically, socially and

economically marginalized, disempowered, excluded, and/or discriminated against?

8. Are such groups represented as "Indigenous Peoples" or as "ethnic minorities" or "scheduled tribes" or "tribal populations" in any formal decision-making bodies at the national or local levels?

B. Identification of Potential Impacts 9. Will the project directly or indirectly benefit or target

Indigenous Peoples?

10. Will the project directly or indirectly affect Indigenous Peoples' traditional socio-cultural and belief practices? (e.g. child-rearing, health, education, arts, and governance)

If yes, exclude from financing.

11. Will the project affect the livelihood systems of Indigenous Peoples? (e.g., food production system, natural resource management, crafts and trade, employment status)


12. Will the project be in an area (land or territory) occupied, owned, or used by Indigenous Peoples, and/or claimed as ancestral domain?


C. Identification of Special Requirements Will the project activities include:

13. Commercial development of the cultural resources and knowledge of Indigenous Peoples?


14. Physical displacement from traditional or customary lands?


15. Commercial development of natural resources (such as minerals, hydrocarbons, forests, water, hunting or fishing grounds) within customary lands under use that would impact the livelihoods or the cultural, ceremonial, spiritual uses that define the identity and community of Indigenous Peoples?


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KEY CONCERNS (Please provide elaborations on the Remarks

column) YES NO NOT

KNOWN Remarks

16. Establishing legal recognition of rights to lands and territories that are traditionally owned or customarily used, occupied or claimed by indigenous peoples?


17. Acquisition of lands that are traditionally owned or customarily used, occupied or claimed by indigenous peoples?


D. Anticipated project impacts on Indigenous Peoples

Project component/ activity/ output Anticipated positive effect Anticipated negative effect

1.

If negative, exclude from financing.

2.

If negative, exclude from financing.

Note: Additional information on the investment may be attached as necessary.

IP Impact Category Plan Required Prepared by: (Subproject Staff) Name and Signature: Designation: Date: A Significant Impact IPP/CAP

B Not Significant IPP/CAP Approved by: (CAL ESU Staff) Name and Signature: Designation: Date: C No impact None

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Annexure 9

GENDER AND LABOR CHECKLIST

48

Annexure 9

IND: Horticulture Value Chain Project Gender and Social Protection Checklist

A. Preliminary Labor and Social Protection Questions

Yes No Not Known

Yet

Remarks

A. Construction Activities 1. Do you have estimate of how many workers will be employed during the project construction of the facilities?

If yes, please provide estimates?

2. Does Champion Agro give local labor a priority when it comes recruitment? ; Does the Company require its civil works contractors to hire workers the local community?

3. Does Champion Agro have policy ensure that Contractor will agree, monitor, and comply with the labor recruitment policy and apply the core labor standards (ie freedom of association , prohibition of child labor, prohibition of discrimination, and prohibition of forced labor) ?

B. Operational Activities

1. Does Champion Agro have human resources policy or Employee Handbook that include provisions complying with the national labor laws (minimum wage, equal pay, safe working conditions, social security contributions, etc.) and the international core labor standards (freedom of association, nondiscrimination and equal pay, prohibition of forced labor and child labor)

Please describe.

2.. How many workers are currently employed by the Champion Agro?

If readily available, please provide employment data disaggregated by (i) direct and indirect employment, (ii) gender, (ii) nationality, (ii) skills type, etc.

3. Do you anticipate recruitment of new staff/workers during operations phase of the project?

4. Do you anticipate carrying out retrenchment /increase of workers in the near future? If yes, —What are the reasons? —Any estimates of how many workers will be retrenched/increased? Please provide number of workers. —When do you foresee the retrenchments/increase to happen (schedule of retrenchments/increase)? —Does Champion Agro have policy regarding retrenchment of workers?

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B. Preliminary Gender Questions Yes No Not

Known Yet

Remarks

1. Does Champion Agro have a policy related to supporting the rights of women and ensuring women’s participation in project activities? If yes, please provide unique attributes of the Company’s policies and operations that promote gender and development.

2. With respect to hiring and recruitment, how can Champion Agro ensure that equal employment opportunities are given for men and women? Is this codified in the Company’s Human Resources Policy. Please provide us a copy.

3. Approximately how many percent of the Champion Agro staff are female? Please provide male-female disaggregated data by occupation (ie administrative and technical positions).

4. Are there any specific benefits provided to women? (e.g. maternity/childbearing insurance, day shift arrangements for mothers)

5. Is there any opportunity to promote opportunities or empowerment of women in the project? If yes, how?

6. Is Champion Agro open to target a percentage of workers required during facilities upgrading and/or operations staff to qualified female applicants?

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Annexure 10

OUTLINE OF AN ENVIRONMENTAL IMPACT ASSESSMENT REPORT

51

Annexure 10

OUTLINE OF AN ENVIRONMENTAL IMPACT ASSESSMENT REPORT

An environmental assessment report is required for all environment category A and B projects. Its level of detail and comprehensiveness is commensurate with the significance of potential environmental impacts and risks. A typical EIA report contains the following major elements, and an IEE may have a narrower scope depending on the nature of the project. The substantive aspects of this outline will guide the preparation of environmental impact assessment reports, although not necessarily in the order shown. A. Executive Summary This section describes concisely the critical facts, significant findings, and recommended actions. B. Policy, Legal, and Administrative Framework This section discusses the national and local legal and institutional framework within which the environmental assessment is carried out. It also identifies project-relevant international environmental agreements to which the country is a party. C. Description of the Project This section describes the proposed project; its major components; and its geographic, ecological, social, and temporal context, including any associated facility required by and for the project (for example, access roads, power plants, water supply, quarries and borrow pits, and spoil disposal). It normally includes drawings and maps showing the project’s layout and components, the project site, and the project's area of influence. D. Description of the Environment (Baseline Data)

This section describes relevant physical, biological, and socioeconomic conditions within the study area. It also looks at current and proposed development activities within the project's area of influence, including those not directly connected to the project. It indicates the accuracy, reliability, and sources of the data. E. Anticipated Environmental Impacts and Mitigation Measures This section predicts and assesses the project's likely positive and negative direct and indirect impacts to physical, biological, socioeconomic (including occupational health and safety, community health and safety, vulnerable groups and gender issues, and impacts on livelihoods through environmental media [Appendix 2, para. 6]), and physical cultural resources in the project's area of influence, in quantitative terms to the extent possible; identifies mitigation measures and any residual negative impacts that cannot be mitigated; explores opportunities for enhancement; identifies and estimates the extent and quality of

52

available data, key data gaps, and uncertainties associated with predictions and specifies topics that do not require further attention; and examines global, transboundary, and cumulative impacts as appropriate. F. Analysis of Alternatives This section examines alternatives to the proposed project site, technology, design, and operation—including the no project alternative—in terms of their potential environmental impacts; the feasibility of mitigating these impacts; their capital and recurrent costs; their suitability under local conditions; and their institutional, training, and monitoring requirements. It also states the basis for selecting the particular project design proposed and, justifies recommended emission levels and approaches to pollution prevention and abatement. G. Information Disclosure, Consultation, and Participation This section: (i) describes the process undertaken during project design and preparation for engaging

stakeholders, including information disclosure and consultation with affected people and other stakeholders;

(ii) summarizes comments and concerns received from affected people and other stakeholders and how these comments have been addressed in project design and mitigation measures, with special attention paid to the needs and concerns of vulnerable groups, including women, the poor, and Indigenous Peoples; and

(iii) describes the planned information disclosure measures (including the type of information to be disseminated and the method of dissemination) and the process for carrying out consultation with affected people and facilitating their participation during project implementation.

H. Grievance Redress Mechanism This section describes the grievance redress framework (both informal and formal channels), setting out the time frame and mechanisms for resolving complaints about environmental performance. I. Environmental Management Plan

This section deals with the set of mitigation and management measures to be taken during project implementation to avoid, reduce, mitigate, or compensate for adverse environmental impacts (in that order of priority). It may include multiple management plans and actions. It includes the following key components (with the level of detail commensurate with the project’s impacts and risks):

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(i) Mitigation: (a) identifies and summarizes anticipated significant adverse environmental impacts

and risks;

(b) describes each mitigation measure with technical details, including the type of impact to which it relates and the conditions under which it is required (for instance, continuously or in the event of contingencies), together with designs, equipment descriptions, and operating procedures, as appropriate; and

(c) provides links to any other mitigation plans (for example, for involuntary resettlement, Indigenous Peoples, or emergency response) required for the project.

(ii) Monitoring: (a) describes monitoring measures with technical details, including parameters to be

measured, methods to be used, sampling locations, that will signal the need for corrective actions; and

(b) describes monitoring and reporting procedures to ensure early detection of conditions that necessitate particular mitigation measures and document the progress and results of mitigation.

(iii) Implementation arrangements: (a) specifies the implementation schedule showing phasing and coordination with

overall project implementation;

(b) describes institutional or organizational arrangements, namely, who is responsible for carrying out the mitigation and monitoring measures, which may include one or more of the following additional topics to strengthen environmental management capability: technical assistance programs, training programs, procurement of equipment and supplies related to environmental management and monitoring, and organizational changes; and

(c) estimates capital and recurrent costs and describes sources of funds for implementing the environmental management plan.

(iv) Performance indicators: describes the desired outcomes as measurable events to

the extent possible, such as performance indicators, targets, or acceptance criteria that can be tracked over defined time periods.

J. Conclusion and Recommendation This section provides the conclusions drawn from the assessment and provides recommendations.

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Annexure 11

OUTLINE OF A RESETTLEMENT PLAN

55

Annexure 11 OUTLINE OF A RESETTLEMENT PLAN

This outline is part of the Safeguard Requirements 2. A resettlement plan is required for all projects with involuntary resettlement impacts. Its level of detail and comprehensiveness is commensurate with the significance of potential involuntary resettlement impacts and risks. The substantive aspects of the outline will guide the preparation of the resettlement plans, although not necessarily in the order shown. A. Executive Summary This section provides a concise statement of project scope, key survey findings, entitlements and recommended actions. B. Project Description This section provides a general description of the project, discusses project components that result in land acquisition, involuntary resettlement, or both and identify the project area. It also describes the alternatives considered to avoid or minimize resettlement. Include a table with quantified data and provide a rationale for the final decision. C. Scope of Land Acquisition and Resettlement This section: (i) discusses the project’s potential impacts, and includes maps of the areas or zone of

impact of project components or activities; (ii) describes the scope of land acquisition (provide maps) and explains why it is

necessary for the main investment project; (iii) summarizes the key effects in terms of assets acquired and displaced persons; and (iv) provides details of any common property resources that will be acquired. D. Socioeconomic Information and Profile This section outlines the results of the social impact assessment, the census survey, and other studies, with information and/or data disaggregated by gender, vulnerability, and other social groupings, including: (i) define, identify, and enumerate the people and communities to be affected; (ii) describe the likely impacts of land and asset acquisition on the people and

communities affected taking social, cultural, and economic parameters into account; (iii) discuss the project’s impacts on the poor, indigenous and/or ethnic minorities, and

other vulnerable groups; and (iv) identify gender and resettlement impacts, and the socioeconomic situation, impacts,

needs, and priorities of women.

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E. Information Disclosure, Consultation, and Participation This section: (i) identifies project stakeholders, especially primary stakeholders; (ii) describes the consultation and participation mechanisms to be used during the

different stages of the project cycle; (iii) describes the activities undertaken to disseminate project and resettlement

information during project design and preparation for engaging stakeholders; (iv) summarizes the results of consultations with affected persons (including host

communities), and discusses how concerns raised and recommendations made were addressed in the resettlement plan;

(v) confirms disclosure of the draft resettlement plan to affected persons and includes arrangements to disclose any subsequent plans; and

(vi) describes the planned information disclosure measures (including the type of information to be disseminated and the method of dissemination) and the process for consultation with affected persons during project implementation.

F. Grievance Redress Mechanisms This section describes mechanisms to receive and facilitate the resolution of affected persons’ concerns and grievances. It explains how the procedures are accessible to affected persons and gender sensitive. G. Legal Framework This section: (i) describes national and local laws and regulations that apply to the project and

identify gaps between local laws and ADB's policy requirements; and discuss how any gaps will be addressed.

(ii) describes the legal and policy commitments from the executing agency for all types of displaced persons;

(iii) outlines the principles and methodologies used for determining valuations and compensation rates at replacement cost for assets, incomes, and livelihoods; and set out the compensation and assistance eligibility criteria and how and when compensation and assistance will be provided.

(iv) describes the land acquisition process and prepare a schedule for meeting key procedural requirements.

H. Entitlements, Assistance and Benefits This section: (i) defines displaced persons’ entitlements and eligibility, and describes all resettlement

assistance measures (includes an entitlement matrix); (ii) specifies all assistance to vulnerable groups, including women, and other special

groups; and.

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(iii) outlines opportunities for affected persons to derive appropriate development benefits from the project.

I. Relocation of Housing and Settlements This section: (i) describes options for relocating housing and other structures, including replacement

housing, replacement cash compensation, and/or self-selection (ensure that gender concerns and support to vulnerable groups are identified);

(ii) describes alternative relocation sites considered; community consultations conducted; and justification for selected sites, including details about location, environmental assessment of sites, and development needs;

(iii) provides timetables for site preparation and transfer; (iv) describes the legal arrangements to regularize tenure and transfer titles to resettled

persons; (v) outlines measures to assist displaced persons with their transfer and establishment

at new sites; (vi) describes plans to provide civic infrastructure; and (vii) explains how integration with host populations will be carried out. J. Income Restoration and Rehabilitation This section: (i) identifies livelihood risks and prepare disaggregated tables based on demographic

data and livelihood sources; (ii) describes income restoration programs, including multiple options for restoring all

types of livelihoods (examples include project benefit sharing, revenue sharing arrangements, joint stock for equity contributions such as land, discuss sustainability and safety nets);

(iii) outlines measures to provide social safety net through social insurance and/or project special funds;

(iv) describes special measures to support vulnerable groups; (v) explains gender considerations; and (vi) describes training programs. K. Resettlement Budget and Financing Plan This section: (i) provides an itemized budget for all resettlement activities, including for the

resettlement unit, staff training, monitoring and evaluation, and preparation of resettlement plans during loan implementation.

(ii) describes the flow of funds (the annual resettlement budget should show the budget-scheduled expenditure for key items).

(iii) includes a justification for all assumptions made in calculating compensation rates and other cost estimates (taking into account both physical and cost contingencies), plus replacement costs.

(iv) includes information about the source of funding for the resettlement plan budget.

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L. Institutional Arrangements This section: (i) describes institutional arrangement responsibilities and mechanisms for carrying out

the measures of the resettlement plan; (ii) includes institutional capacity building program, including technical assistance, if

required; (iii) describes role of NGOs, if involved, and organizations of affected persons in

resettlement planning and management; and (iv) describes how women’s groups will be involved in resettlement planning and

management, M. Implementation Schedule This section includes a detailed, time bound, implementation schedule for all key resettlement and rehabilitation activities. The implementation schedule should cover all aspects of resettlement activities synchronized with the project schedule of civil works construction, and provide land acquisition process and timeline. N. Monitoring and Reporting This section describes the mechanisms and benchmarks appropriate to the project for monitoring and evaluating the implementation of the resettlement plan. It specifies arrangements for participation of affected persons in the monitoring process. This section will also describe reporting procedures.

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Annexure 12

OUTLINE OF AN INDIGENOUS PEOPLES PLAN

60

Annexure 12

OUTLINE OF AN INDIGENOUS PEOPLES PLAN This outline is part of the Safeguard Requirements 3. An Indigenous Peoples plan (IPP) is required for all projects with impacts on Indigenous Peoples. Its level of detail and comprehensiveness is commensurate with the significance of potential impacts on Indigenous Peoples. The substantive aspects of this outline will guide the preparation of IPPs, although not necessarily in the order shown. A. Executive Summary of the Indigenous Peoples Plan This section concisely describes the critical facts, significant findings, and recommended actions. B. Description of the Project This section provides a general description of the project; discusses project components and activities that may bring impacts on Indigenous Peoples; and identify project area. C. Social Impact Assessment This section: (i) reviews the legal and institutional framework applicable to Indigenous Peoples in

project context. (ii) provides baseline information on the demographic, social, cultural, and political

characteristics of the affected Indigenous Peoples communities; the land and territories that they have traditionally owned or customarily used or occupied; and the natural resources on which they depend.

(iii) identifies key project stakeholders and elaborate a culturally appropriate and gender-sensitive process for meaningful consultation with Indigenous Peoples at each stage of project preparation and implementation, taking the review and baseline information into account.

(iv) assesses, based on meaningful consultation with the affected Indigenous Peoples communities, the potential adverse and positive effects of the project. Critical to the determination of potential adverse impacts is a gender-sensitive analysis of the relative vulnerability of, and risks to, the affected Indigenous Peoples communities given their particular circumstances and close ties to land and natural resources, as well as their lack of access to opportunities relative to those available to other social groups in the communities, regions, or national societies in which they live.

(v) includes a gender-sensitive assessment of the affected Indigenous Peoples’ perceptions about the project and its impact on their social, economic, and cultural status.

(vi) identifies and recommends, based on meaningful consultation with the affected Indigenous Peoples communities, the measures necessary to avoid adverse effects or, if such measures are not possible, identifies measures to minimize, mitigate,

61

and/or compensate for such effects and to ensure that the Indigenous Peoples receive culturally appropriate benefits under the project.

D. Information Disclosure, Consultation and Participation This section: (i) describes the information disclosure, consultation and participation process with the

affected Indigenous Peoples communities that was carried out during project preparation;

(ii) summarizes their comments on the results of the social impact assessment and identifies concerns raised during consultation and how these have been addressed in project design;

(iii) in the case of project activities requiring broad community support, documents the process and outcome of consultations with affected Indigenous Peoples communities and any agreement resulting from such consultations for the project activities and safeguard measures addressing the impacts of such activities;

(iv) describes consultation and participation mechanisms to be used during implementation to ensure Indigenous Peoples participation during implementation; and

(v) confirms disclosure of the draft and final IPP to the affected Indigenous Peoples communities.

E. Beneficial Measures This section specifies the measures to ensure that the Indigenous Peoples receive social and economic benefits that are culturally appropriate, and gender responsive. F. Mitigative Measures This section specifies the measures to avoid adverse impacts on Indigenous Peoples; and where the avoidance is impossible, specifies the measures to minimize, mitigate and compensate for identified unavoidable adverse impacts for each affected Indigenous Peoples groups. G. Capacity Building This section provides measures to strengthen the social, legal, and technical capabilities of (a) government institutions to address Indigenous Peoples issues in the project area; and (b) Indigenous Peoples organizations in the project area to enable them to represent the affected Indigenous Peoples more effectively. H. Grievance Redress Mechanism This section describes the procedures to redress grievances by affected Indigenous Peoples communities. It also explains how the procedures are accessible to Indigenous Peoples and culturally appropriate and gender sensitive.

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I. Monitoring, Reporting and Evaluation This section describes the mechanisms and benchmarks appropriate to the project for monitoring, and evaluating the implementation of the IPP. It also specifies arrangements for participation of affected Indigenous Peoples in the preparation and validation of monitoring, and evaluation reports. J. Institutional Arrangement This section describes institutional arrangement responsibilities and mechanisms for carrying out the various measures of the IPP. It also describes the process of including relevant local organizations and NGOs in carrying out the measures of the IPP. K. Budget and Financing This section provides an itemized budget for all activities described in the IPP.

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Annexure 13

OUTLINE OF ENVIRONMENTAL DUE DILIGENCE REPORT ON PROJECT FACILITIES

64

Annexure 13

SUGGESTED OUTLINE OF ENVIRONMENTAL DUE DILIGENCE REPORT ON PROJECT FACILITIES

A. Subproject Name and Summary Information

(i) Location of subproject (ii) Nature (iii) Scale/size (iv) Date of construction/operation commencement

B. Relevant Environmental Permits or Compliance Certificates

(i) Issued by which government agencies (ii) Issuance dates and duration of validity (iii) Permit conditions and renewal requirements

C. Incidents of Violations or Non-Compliance

(i) Nature of non-compliance (ii) Violation or non-compliance based on what environmental standards and

regulations (iii) Recorded dates and authorities (iv) Media or community reactions (if any)

D. Incidents of Environmental and Safety Accidents

(i) Incident recorded dates, (ii) Scale of damage and injury (if any) (iii) Authorities in charge of investigation/recording (iv) Media or community reactions (if any)

E. Environmental Capacity (i) Staff capacities in environmental management (as relevant) (ii) Degree of awareness of: (i) environmental management, (ii) health and safety,

(iii) environmental laws and regulations (iii) Training programs carried out (iv) Needs assessment of environmental management capacity

F. Stakeholder Consultation

(i) Details of consultations, if any, with local communities, nongovernmental organizations, civil society groups, and other stakeholders, including affected people

G. Compliance With Environmental Qualities and Standards (national and

international, as relevant) (i) Air (ii) Water (surface and ground water) (iii) Waste generation and management (iv) Noise and vibration (v) Other

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Annexure 14

ANNUAL ENVIRONMENTAL AND SOCIAL PERFORMANCE REPORT

66

Annexure 14

ANNUAL ENVIRONMENTAL AND SOCIAL PERFORMANCE REPORT

FOR

CHAMPION AGRO LIMITED

67

I. INTRODUCTION 1. Champion Agro Limited (CAL) company profile and description of Subproject(s)/Activity(ies) financed with ADB loan proceeds. 2. The purpose of the Environmental and Social Performance Report (ESPR) is to report on implementation of the agreed Environmental and Social Management System (ESMS) and applicable environmental and social management practices for Subproject(s)/Activity(ies) including environmental management plan (EMP), resettlement plan, stakeholder engagement and community relations and environmental monitoring program. The annual ESPR encompasses implementation by CAL of all phases of the Subproject(s)/Activity(ies). It includes: (i) Contact information for responsible individuals; (ii) Compliance with ADB environmental and social requirements for the

Subproject(s)/Activity(ies); (iii) Environmental and social aspects of Subproject(s)/Activity(ies) under

implementation; (iv) Labor and Working Conditions, compliance with core labor standards, occupational

health and safety performance and significant incident; (v) Sustainable development initiatives and community relations. II. ENVIRONMENTAL AND SOCIAL MANAGEMENT A. ESPR Preparer

Report prepared by: (name and title) Telephone: E-mail: Signature: Report Date:

B. Environmental and Social Responsibility 3. The individual(s) below hold responsibility for environmental and social performance in the organizational structure of CAL and at the Subproject(s)/Activity(ies) sites: Manager/Staff(s) with responsibility for environment and social matters (name and title)

C. Environmental and Social Management 4. [Confirm the continuous assignment of a suitably qualified individual(s) who is/are responsible for implementing the ESMS, and monitoring and reporting on environmental and social management practices and compliance issues of the Subproject(s)/Activity(ies)] 5. [Describe the current environmental and social management assignment, deployment of staff, and capacity for specific Subproject(s)/Activity(ies); and to ensure Subproject(s)/Activity(ies) compliance with ADB SPS Safeguard Requirements]

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III. COMPLIANCE WITH ENVIRONMENTAL REQUIREMENTS A. Compliance with Country Requirements 6. [Describe how Subproject(s)/Activity(ies) operations are in compliance with applicable national and local environmental, labor, occupational health and safety laws and regulations and standards as specified in the financial agreements.] 7. [Describe any instance of inspection or review of CAL environmental and safety compliance provisions for the Subproject(s)/Activity(ies), and occasions of non-compliance in which significant fines or penalties have been imposed, operations closed down, or other actions related to Subproject(s)/Activity(ies) performance] 8. [Highlight any new or emerging environmental and social issues, such as pending regulations or updated standards, that could affect the environmental and social performance of Subproject(s)/Activity(ies) operations] B. Compliance with ADB Safeguards Requirements 9. [Describe how Subproject(s)/Activity(ies) are currently in compliance with ADB's Safeguards Policy Statement safeguard requirements for environment, involuntary resettlement and Indigenous Peoples, and related public consultation and disclosure requirements] IV. PROGRESS OF ONGOING SUBPROJECTS/ACTIVITIES 10. [Provide information on progress of implementation of the Subproject(s)/Activity(ies),including description, status, and completion timetable for environment and social related items. A. Environmental Progress 11. [Provide a summary of the progress of implementation of the investment(s)/activity(ies), including description, status, and completion timetable for environment-related items. Describe the status of permits and approvals. Summary information should include: (i) Overview of the investment(s)/activity(ies), including progress against schedule; (ii) Design changes to the investment (s)/activity(ies) adopted during the reporting period

and reasons for those changes; (iii) Environmental issues and complaints arising during the reporting period; (iv) Information on any unanticipated environmental impacts, and remedial actions that

have been taken; (v) Any unresolved environmental issues or grievances; and (vi) Status of compliance with environmental requirements (national, local, ADB or

instances of non-compliance.]

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B. Social Progress 12. [Provide a summary of the progress of implementation of the investment(s)/activity(ies), including description, status, and completion timetable for social-related items. Summary information should include:

(i) Overview of the investment(s)/activity(ies) including progress against schedule;

(ii) Alternative designs considered to avoid or minimize involuntary resettlement impacts and impacts to indigenous peoples/ethnic minorities;

(iii) Social issues and complaints arising during the reporting period; (iv) Information on any unanticipated impacts, and corrective actions that have

been taken; (v) Any unresolved social issues or grievances; and (vi) Status of compliance with social requirements (national, local, ADB) or

instances of non-compliance.]

V. SUMMARY OF SAFETY PERFORMANCE AND ANY CORRECTIVE ACTIONS 11. [Provide a summary for the overall Subproject(s)/Activity(ies) of the following:

(i) Worker Health and Occupational Safety - Describe status of worker health and safety programs and training, any work-related accidents at the Subproject(s)/Activity(ies) sites, actions taken to reduce accidents.

(ii) Accidents, Fires, and Other Emergencies - Provide a summary of any significant accidents, fires, or explosions, or major accidental releases to the environment. Include response measures taken and any improvements made to equipment or procedures]

VI. SUSTAINABLE DEVELOPMENT INITIATIVES AND COMMUNITY RELATIONS 12. [Describe any initiatives undertaken to improve environmental and social performance. Describe progress in formulating and implementing the initiatives. Describe any outreach programs with the community, civil society, etc. in the Subproject(s) / Activity(ies) area]

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Environmental and Social Management System … and Social Management System Framework Champion Agro...

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