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Transcript of metromanila urban sewage.pdf
REPUBLIC OF THE PHILIPPINES
ENVIRONMENT AND SOCIAL SAFEGUARDS FRAMEWORK
(ESSF)
(February 7, 2012)
FOR THE
METRO MANILA WASTEWATER MANAGEMENT PROJECT
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FOREWORD
This Environment and Social Safeguards Framework (ESSF) has been prepared for the Bank’s Metro Manila Wastewater Management Project. The team that worked on the preparation of the document comprised of staff from Land Bank of the Philippines, Manila Water Company, Inc., and Maynilad Water Services, Inc. Consultations took place with relevant authorities from the Philippines for the preparation of the document. An earlier draft version of the document was discussed in a meeting at the premises of Department of Environment and Natural Resources on October 5, 2010. The earlier version of the ESSF was also publicly disclosed by LBP, Manila Water, and Maynilad in their web‐sites, and also placed in the Bank’s Infoshop in February 4, 2011. The Borrower of the proposed Bank loan would be LBP which will on‐lend the Bank loan proceeds to Manila Water (MWCI) and Maynilad (MWSI). As a Borrower, LBP will ensure that Bank’s policies on environmental and safeguards are followed and to this end it would work with the Manila Water and Maynilad. The Bank’s environmental category of Financial Intermediary is applicable for the project and the ESSF has been prepared accordingly. Throughout the document Manila Water and Maynilad have been also referred to Concessionaires or Sub‐Borrowers. Further, LBP has also been referred to as a Borrower in different parts of the document.
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TABLE OF CONTENTS
LIST OF ABBREVIATIONS AND ACRONYMS ................................................................................................... 4
I. Background ...................................................................................................................................... 6
A. Project Overview .............................................................................................................................. 6
B. Project Description .......................................................................................................................... 7
C. Project Cost and Financing ............................................................................................................... 9
D. Areas of Influence ............................................................................................................................ 9
E. Scope and Objectives of the ESSF .................................................................................................. 10
F. Retroactive Financing .................................................................................................................... 10
II. Environmental and Social Safeguards Issues ................................................................................. 11
A. Environment Safeguards Issues ..................................................................................................... 11
B. Social Safeguards Issues ................................................................................................................. 12
C. World Bank Safeguards Policies Triggered in the Project .............................................................. 12
III. Project Process Guideline .............................................................................................................. 14
A. Environmental Safeguards ............................................................................................................. 16
B. Social Safeguards ........................................................................................................................... 19
C. Retroactive Financing .................................................................................................................... 29
IV. Sub‐project Monitoring and Audit ................................................................................................. 31
V. Public Consultation, Participation and Disclosure ......................................................................... 33
A. Introduction ................................................................................................................................... 33
B. Public Consultation Requirements for Environmental Safeguards ............................................... 33
C. Public Consultation and Participation in Social Safeguards ........................................................... 33
D. Disclosure ....................................................................................................................................... 34
VI. Institutional Arrangements ............................................................................................................ 35
A. Land Bank of the Philippines (LBP) ................................................................................................ 36
B. Manila Water Company, Inc. (Manila Water) ................................................................................ 38
C. Maynilad Water Services, Inc. (Maynilad) ..................................................................................... 39
D. Department of Environment and Natural Resources (DENR) and Laguna Lake Development Authority (LLDA) ...................................................................................................................................... 39
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E. Local Government Units (LGUs) ..................................................................................................... 40
VII. Capacity Building ............................................................................................................................ 41
VIII. Grievance Redress Mechanism ...................................................................................................... 43
Annex 1: Initial Screening Form for Potential Environmental & Social Safeguards Issues ........................ 46
Annex 2: EA Requirements for Sanitation and Sewerage Projects ............................................................ 48
Annex 3: Sample Terms of Reference (TOR) for an EA for Wastewater Collection, Treatment, Reuse and Disposal Systems (Construction and Rehabilitation) .................................................................................. 50
Annex 4: Template for an Environmental Management Plan ................................................................... 56
Annex 5: Cultural Property and Protection Measures ............................................................................... 63
Annex 6: Safeguards Procedures for Inclusion in the Technical Specifications for Contracts ................... 65
Annex 7: Summary of Public Consultation Meeting Proceedings on the MWMP IESSMF ........................ 69
Annex 8: Terms of Reference (TOR) ............................................................................................................ 74
Third Party Environmental Audit for MWMP ............................................................................................. 74
Annex 9: Environmental requirements of sub‐projects, Supervision and Institutional responsibilities .... 77
Annex 10: Resettlement Policy Framework ................................................................................................ 79
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LIST OF ABBREVIATIONS AND ACRONYMS
ARAP BP
Abbreviated Resettlement Action Plan (World) Bank Procedures
CBD‐I CNC
Corporate Banking Department I Certificate of Non‐coverage
DAO DENR Administrative Order DENR Department of Environment & Natural Resources DP Displaced Person EA Environmental Assessment ECC Environmental Compliance Certificate ECR Environmental Compliance Report EDD Environmental Due Diligence EIA Environmental Impact Assessment EIS Environmental Impact Statement EMA External Monitoring Agency EMB Environmental Management Bureau EMM Environmental Mitigation Measures EMoP Environmental Monitoring Plan EMP Environmental Management Plan EPMAR Environmental Performance Monitoring and Audit Report EPMD Environmental Program and Management Department ESSF Environment and Social Safeguard Framework FI Financial Intermediary FS Feasibility Study IEE Initial Environmental Examination ISO International Standards Organization ESSF Environmental and Social Safeguards Framework LBP Land Bank of the Philippines LGU Local Government Unit LLDA Laguna Lake Development Authority MWCI Manila Water Company, Inc. MWSI MWMP
Maynilad Water Services, Inc. Metro Manila Wastewater Management Project
MWSS Metropolitan Waterworks and Sewerage System NIMBY NOL
Not In My Back Yard No Objection Letter
OP Operational Policy PCO Pollution Control Officer PCR PD
Physical Cultural Resources Presidential Decree
PENRO Provincial Environment & Natural Resource Office PMD‐II PMO
Programs Management Department II Project Management Office
RAP Resettlement Action Plan RCR ROW
Resettlement Completion Report Right of Way
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SA Social Assessment SECR Social & Environmental Compliance Report SMR SSLDIP STP
Self Monitoring Report Support for Strategic Local Development and Investment Project Sewerage Treatment Plant
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I. Background
A. Project Overview 1. The Philippines has been maintaining strong economic growth due to activities in urban areas, especially around Metro Manila. As the urban areas continue to grow, the challenge of providing sustainable urban services arises, especially relating to sanitation and water. Since 1997, water supply, sewerage, and sanitation services in Metro Manila have been assigned by the Metropolitan Waterworks and Sewerage System (MWSS) to be managed by the two private Concessionaires: Manila Water Company Inc. (MWCI) for the east zone and Maynilad Water Services Inc. (MWSI) for the west zone. However, sewerage coverage remains very low at 16 percent in the east zone and 8 percent in the west zone.
2. The need to increase the sewerage coverage in Metro Manila is particularly important in achieving the timelines set in the Clean Water Act and the Supreme Court mandamus decision to realize an improved water quality in Manila Bay. MWCI plans to increase coverage in the east zone to 30 percent in 2010 and 100 percent by 2037. In the west zone, MWSI also plans to expand its wastewater collection and treatment services to 14 percent by 2012 and to 100 percent by 2037.
3. In order to meet the objectives of increasing the coverage and effectiveness of wastewater collection and treatment as well as septage management in Metro Manila and its suburbs, the Government of the Philippines is preparing the Metro Manila Wastewater Management Project (MWMP) through the Land Bank of the Philippines (LBP), which will act as the Financial Intermediary (FI) and Borrower for the project, and through the two Concessionaires: MWCI and MWSI, which will be the Sub‐Borrowers. Specific development objective of the MWMP is to improve wastewater services in selected sub‐catchments of Metro Manila and surrounding areas. This will be achieved by supporting Manila Water and Maynilad to increase their coverage of wastewater collection and treatment and septage management which will contribute towards improving the environment in Metro Manila.
4. The overall environment and social benefits to be generated by the project will contribute to an improvement in the general state of the environment in Laguna Lake–Pasig River–Manila Bay ‐ watershed, leading to better health and well‐being due to improved living conditions for the people. This promises a better quality of life and economic competitiveness for Metro Manila and its suburbs. Additional project details are available in the Project Appraisal Document.
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B. Project Description 5. The project has been designed in a manner that allows flexibility in supporting investments to be carried out by the two Concessionaires. An indicative list of investments has been developed and the Concessionaires are in the process of preparing the investments to meet the eligibility criteria for Bank financing. Land Bank as a Borrower will work with Manila Water and Maynilad, both sub‐Borrowers, to ensure that the following eligibility criteria are met:
• Economic and Technical: The sub‐project should propose technically feasible options and be justified on cost effectiveness and economic grounds; wherever possible a cost benefit analysis would be presented;
• Financial: The revenue stream for the Concessionaires is not directly connected to each sub‐project as revenues would be based on overall tariffs agreed with the regulator. The costs, however, will increase for the Concessionaires for each treatment plant due to the investments and operations. To ensure that the overall financial viability of the Concessionaires is not affected, they would have to demonstrate that the debt service coverage ratio should not be less than 1.2;
• Environmental: The sub‐project should: be in line with the objective of the project; and comply with the environmental safeguard procedures laid out in the Environmental and Social Safeguards Framework (ESSF), which specifies that all environmental safeguard instruments ‐ such as the Environmental Impact Assessments or Environmental Management Plans ‐ have to be approved by the Bank; and
• Social: The sub‐project should comply with the social safeguard procedures laid out in the ESSF which would include procedures on land acquisition and resettlement due to construction activities of the project. All social safeguard instruments ‐ such as Resettlement Completion Report (RCR) or Resettlement Action Plan (RAP) – have to be approved by the Bank.
6. The project is expected to finance investments by Manila Water and Maynilad in wastewater collection and treatment, and septage management in Metro Manila. Investments under the two subcomponents of the project will help the Concessionaires meet their service obligation targets under the Concession Agreement. Eligible investments will include wastewater collection and treatment and septage management. Consulting assignments related to project implementation are also eligible. These would include: preparation of feasibility studies, construction supervision, preparation of environmental and social safeguard reports, preparation of project summary reports and audit reports, and public awareness campaigns to inform the citizens about the project and the benefits of better water and wastewater services.
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The Concessionaires will pay for any land acquisition and resettlement costs which will not be financed with Bank funds.
7. Component 1: Investments in Wastewater Services by Manila Water ($193.4 million) – This component supports technical assistance and investments by the Concessionaire in wastewater collection and treatment, and septage management in the east Concession zone of Metro Manila. Only one investment has been foreseen for Manila Water which is the North and South Pasig Sewerage System. It will include the construction of a wastewater treatment plant (capacity of 165,000 m3/day) and associated sewerage lines. The pre‐qualification process to select a contractor that will construct the treatment plant on a Design Build basis is underway. Separate contracts for installation of sewers will also be prepared and for which preparation for designs is underway. Environmental and social safeguard instruments have already been prepared for the treatment plant. However, the designs and location for the sewer systems have not yet been completed. Permanent impacts due to sewer network and laying of wastewater mains are expected to be limited as it is expected that new sewer lines would be laid in public spaces and mostly in the middle of the existing roads. These works would however, cause temporary impacts on roadside commercial establishment and residential buildings in terms of temporary restriction of access. Where waste water mains and sewer lines traverse private properties/housing association areas, easement rights for laying of such pipelines, and their periodic repairs/maintenance, would be obtained in consultation with respective owners and associations. Therefore, no land acquisition for such areas would be necessary. However, in case of any need for land acquisition, the provisions of the ESSF will apply. 8. Component 2: Investments in Wastewater Services by Maynilad ($220.7 million) – This component supports technical assistance and investments by the Concessionaire in wastewater collection and treatment, and septage management in west Concession zone Metro Manila. Six potential investments have been pre‐identified that could meet sub‐project eligibility criteria for Bank financing. The identified investments are: (a) Rehabilitation of the existing Ayala‐Alabang Sewerage Treatment Plant (STP) that has an existing capacity to treat 7,500 m3 wastewater per day; (b) South Septage Treatment Plant that is expected to treat about 250 m3/day of septage collected from septic tanks; (c) Construction of the Talayan STP in the San Juan river basin with a capacity of 15,500 m3/day; (d) Construction of the Valenzuela STP with a capacity of 60,000 m3/day; (e) Construction of the Pasay1 STP with a capacity of 46,000 m3/day; and (f) Construction of the Muntinlupa STP with a capacity of 66,000 m3/day. Four of the subprojects, namely Talayan, Valenzuela, Pasay and Muntinlupa also have associated sewer networks.
9. The project activities are separated under two phases. Phase 1 investments would be those for which the sub‐projects sites are known, land has been acquired and for which the safeguard documents have been submitted to the Bank. There are four investments in this phase ‐ Manila Water’s North and South Pasig Sewerage System,
1 Pasay STP refers to Maricaban/Pasay STP
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including the sewer lines; and Maynilad’s rehabilitation work in Ayala Alabang STP, Talayan STP and Pasay STP. It is expected that the sewer lines investment would not require land acquisition as the lines would be laid under existing public roads. The final designs for the sewer lines will be carried out during project implementation and in case the final designs require land to be acquired, the procedures outlined in the ESSF would be followed. Similarly, pump stations may require land acquisition in case they are installed in areas which are not public land. In case land acquisition is needed, the provision of the ESSF would be followed. About 74 percent of the Bank loan will be committed through the Phase I investments.
Phase 2 investments are the indicative investments for Maynilad where construction will start after March 31, 2013. These potential investments are for the South Septage Treatment plant, Valenzuela STP, and Muntinlupa STP. Maynilad is in the process of acquiring land for these sites. Once the land is acquired, site specific conditions would be known and Maynilad would be able to prepare the necessary safeguard instruments during project implementation. The project is classified as an FI loan for environmental purposes and related Bank procedures would be followed. The safeguard documents would be prepared under phase 2 as per the procedures outlined in the Environment and Social Safeguard Framework (ESSF). Maynilad will hire consultants to carry out detailed designs for the sewer networks. Thereafter contractors would be hired for the installation of the network. Maynilad will also hire a contractor to construct the STPs and the septage treatment plant through a Design Build contract.
C. Project Cost and Financing 10. The total cost of the proposed project is US$ 414.1 million with a Bank financing of US$ 275 million and US$ 139.1 million in equity investments provided by the Concessionaires. The total investment cost may change and it would depend on the actual investments that are carried out. The Bank loan of US$ 137.5 million would be made available to each Concessionaire for the investments and the rest of the investments would have to be borne by the Concessionaires. The front end fee of US$ 687.5 thousand will be paid by the Concessionaires outside of the Bank loan and the investment cost includes price and physical contingencies. For Component 1, the investment cost is US$ 193.4 million of which US$ 55.9 million will be financed by Manila Water and the rest by the Bank. For Component 2, the investment cost is US$ 220.7 million of which US$ 83.2 million is expected to be financed by Maynilad and rest by the Bank.
D. Areas of Influence
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11. In a sub‐catchment2 where there is Bank financing, all activities ‐ Bank financed or non‐Bank financed – necessary to achieve the stated development objective will follow Bank safeguard procedures. For the proposed septage treatment plant by Maynilad, the Bank's safeguard policies will apply to the construction and operation of the plant, including the associated septage collection, treatment and disposal activities. For this project, the environment and social safeguards policies will be applicable for the construction/ rehabilitation of the sewage/septage treatment facilities, main sewer trunk lines, pumping stations, sewer manholes, interceptor canals and sludge management. E. Scope and Objectives of the ESSF 12. Preliminary investigations carried out by the Concessionaires suggest that environment and social impacts will occur both during construction and operational phases of the project. The scope of the impacts will vary from sub‐project to sub‐project. This Environment and Social Safeguards Framework (ESSF) will guide the project to adequately address and mitigate adverse environmental and social impacts that will be potentially generated by the project. 13. The ESSF establishes the objectives, procedures, institutional framework, and implementation arrangements for identifying, managing and monitoring potential environmental and social impacts of the project activities. The ESSF will address mechanisms for public consultation and disclosure of project documents as well as redress of possible grievances. The scope and key objectives of the ESSF include: • To establish clear procedures and methodologies for the environmental and social
screening, review, approval and implementation of sub‐projects to be financed under the Project; and
• To specify appropriate roles and responsibilities, and outline the necessary reporting procedures, for managing and monitoring environmental and social concerns related to sub‐projects.
F. Retroactive Financing 14. Retroactive financing, as defined in the Loan Agreement between the Bank and LBP is possible under the project. For a project to be considered for retroactive financing, the sub‐project financing criteria, including those related to environment and social safeguards have to be met. The procedures laid out in this ESSF will apply for sub‐projects to be considered for retroactive financing as described in Section IIIC Retroactive Financing.
2 Under this project, a sub‐catchment comprises of a wastewater treatment plant, sewerage lines to convey wastewater and pipelines for conveying and disposing treated wastewater, and systems for sludge management and transportation.
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II. Environmental and Social Safeguards Issues 15. The ESSF is responsive to the relevant national and local laws and regulations and the World Bank Safeguards Policies. The safeguards requirements for the project will build upon national guidelines and requirements in order to streamline the documents required for each sub‐project without compromising in any manner the safeguard requirements of either the government or the World Bank.
A. Environment Safeguards Issues 16. This project is the fourth of a series of investment projects assisted by the WB to expand the effective delivery of services for sanitation and sewerage sector in Metro Manila. The WB has assisted the financing of eight sewage treatment plants, two septage treatment plants and seven communal septic tanks that are operating in Metro Manila. These plants are operating satisfactorily and the lessons learned have been incorporated in the project design. Key lessons learned are applying open market purchase for land acquisition to expedite construction, and involving communities upfront to discuss potential investments. These lessons are elaborated further in Section IIIB Applicable Policies, Key Steps. 17. Sanitation and sewerage projects are classified as environmental enhancement projects because its main objective is to treat domestic sewage before it is discharged to the environment thereby improving the overall environmental conditions of an area. However, the extent of the process of collection and treatment of raw sewage and the disposal of the treated sewage and sludge as well as the construction or rehabilitation of the sewer system may generate environmental impacts – during construction and implementation periods. These environmental impacts have to be identified and suitable mitigation measures should be applied. 18. The main environmental issues that are likely to arise during the project construction are: disruptions due to noise, traffic, and dust. During project implementation the impacts are likely to arise from discharge of treated water, although the quality of the treated water will have to meet discharge standards and the quality of water will improve since untreated wastewater is currently discharged to water bodies; smell arising from the treatment plants; disposal of sludge (from wastewater treatment plants); and septage (from the solids collected from the septic tanks).
19. Similar projects located in urban areas are severely constrained by the limited space available to maintain buffer zones or complete the entire sludge management process. Another constraint is the lack of acceptance by local communities to be located adjacent to a wastewater
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treatment facility. These issues have to be addressed. Based on experience, it is best practice to initiate an early engagement with the stakeholders and a public disclosure of project documents to end users, local communities, government regulators, Local Government Units, service providers in planning and designing sanitation and sewerage projects to ensure project sustainability and social acceptability.
B. Social Safeguards Issues
20. Land will be required for the physical components of the project (Sewerage Treatment Plant, wastewater treatment plants, interceptor boxes, pump stations, etc.). For STPs, depending upon the capacity, the land requirement may vary (expected to be between 1‐3 hectares). For pump stations and interceptor boxes, the land requirement will be much smaller. During identification of potential sites, both the Concessionaires will as much as possible avoid land parcels with multiple owners and encumbrances. Permanent impacts due to sewer network and laying of wastewater mains are expected to be limited as it is expected that new sewer lines would be laid within public roads. These works would however, cause temporary impacts on roadside commercial establishment and residential buildings in terms of restriction of access. Where wastewater mains and sewer lines traverse private properties/housing association areas, easement rights for laying of such pipelines, and their periodic repairs/maintenance, would be obtained in consultation with respective owners and associations. Therefore, no land acquisition for such areas would be necessary. C. World Bank Safeguards Policies Triggered in the Project 21. Following Bank safeguard procedures will be triggered:
• OP/BP 4.01 EA: Environmental category of Financial Intermediary (FI) will apply.
Individual sub‐projects will be screened and assigned the appropriate environmental categorization and environmental due diligence (EDD) will be conducted in accordance with OP 4.01.
• OP/BP 4.04 Natural Habitats: The policy is triggered in case a sub‐project affects natural habitats. This will be determined during the preparation of the environmental instruments. However, it should be also noted that site visits for the known sites in Phase 1 have indicated that the project is not expected to cause significant conversion or degradation of natural habitats. All sub‐project proposals will be screened for potential adverse impacts on critical and non‐critical natural habitats and necessary mitigation measures will be prepared as part of the sub‐project specific EA and EMP.
• OP/BP 4.12 Involuntary Resettlement: Land acquisition and involuntary resettlement are anticipated under the project, particularly for sub‐projects involving service expansion or reconstruction at new sites. Sub‐projects will be screened for land‐related
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impacts, and appropriate resettlement instruments, if needed will be developed and implemented.
22. Provisions for chance finds will be included in the project: All construction activities will include mechanisms to address chance finds to avoid or mitigate adverse impacts on Physical Cultural Resources (PCR) in Manila. Further, the environmental assessments to be carried out will confirm whether PCR are affected. In case the environmental assessment identifies that PCR will be affected, the Bank’s policy on Physical Cultural Resources (OP 4.11) will be triggered and appropriate measures will be taken as per the policy. Ways to address chance finds are elaborated more in the ESSF (Annex 5, Cultural Property and Protection Measures).
23. Indigenous Peoples policy (OP 4.10) is not triggered. No indigenous people that correspond to the Bank's definition of Indigenous Peoples are residing within project influence area. There are no ancestral domains in Metro Manila and indigenous peoples found there are dispersed and do not form distinct cultural communities. Many are temporary visitors seeking seasonal economic opportunities. Further, no forced severance from ancestral territories has occurred. This has been confirmed in a discussion held with National Commission on Indigenous People (NCIP) in August 2010 as well as a review of the database in the NCIP website http://202.57.46.78/adis/Public/default.aspx.
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III. Project Process Guideline 24. As sub‐projects will be prepared for financing in a continuous manner during the project implementation period, screening for potential environmental and social impacts will be conducted and mitigation and management measures will be developed in line with the agreed ESSF. Environmental and social impact screening, mitigation and management measures development and implementation will follow these steps. The two Sub‐Borrowers will carry out the work related to the steps mentioned below. LBP will review the process and the documents prepared to ensure that Bank procedures were followed, prior to requesting financing from the Bank for the sub‐projects. The Bank will also review prior to providing financing to ensure that the process has been adequately followed.
• Step 1 ‐ Identification of Sub‐projects According to Selection Criteria.
The selection criteria are known to the Sub‐Borrowers who will identify the sub‐projects, including the possible land where the investments are expected to be carried out. MWCI plans to acquire the land through a willing‐buyer‐willing seller method and the location of site would be known once the contract to sell (signed between MWCI and the land owner) is signed.
• Step 2 ‐ Screening
Screening for potential environmental and social safeguard impacts and determination of safeguards documents required according to national regulations and World Bank policies. Screening will determine (i) whether the project is environmental category A, B or C (ii) the national applicable requirements and Bank policies to be triggered and (iii) the choice of safeguard instruments. The social screening will include in particular determination on whether the Bank’s policy on Involuntary Resettlement will apply and in case where the land is acquired through open market purchase on a Willing Buyer‐Willing Seller basis, the process and procedures to do so. The Sub‐Borrowers will ensure that the sub‐projects are aligned with the screening process outlined in the ESSF. Because the evaluation of the expected environmental and social impacts requires specialized technical skills, the Sub‐Borrower may employ qualified environmental and social specialists as well as consultants to assist them in this task. The Sub‐Borrower will submit the results of the screening to LBP.
• Step 3 ‐ Project Preparation and Documentation
Once the screening and documentation requirements are acceptable to LBP, it will submit the results of the screening to the Bank. After the Bank provides its comments, the Sub Borrower will provide TORs that determine the scope of the environment
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instruments to be prepared. In particular for Category A projects, the Bank will review the TORs. Then the Sub‐Borrowers will develop detailed safeguard documents and impact mitigation measures. All corresponding safeguards instruments shall be prepared by the Sub‐Borrower. Likewise, it is the responsibility of the Sub‐Borrowers to carry out the necessary permit applications as required by the ESSF, and to obtain the necessary clearances for each sub‐project before starting the construction. Sound safeguards practices have to be incorporated into the sub‐project design and implementation, and potential negative impacts will have to be mitigated to acceptable levels / standards. The Sub‐Borrowers are responsible for the quality and accuracy of the information in the safeguards document, as well as the transmission of these documents to Department of Natural Resources (DENR) or other government agency.
Safeguard documents will be subject to consultation and disclosure in an accessible place, in a timely manner, in a form and language understandable to key stakeholders, prior to the finalization of the documents. Particular attention will be given to ensure project‐affected persons have adequate time and ready access to draft documents before consultation takes place.
• Step 4 ‐ Review and clearance of environmental safeguards documents
The environmental and social safeguards documents prepared by each of the Concessionaries will be reviewed by LBP which may consult other related agencies. After the documents are satisfactory to LBP, it will submit the documents to the Bank for review and approval with its assessment on how the ESSF conditions have been met. The safeguard documents for all sub‐projects are subject to Bank’s review.
• Step 5 ‐ Implementation ‐ Supervision, Monitoring and Evaluation
Implementation of the safeguards measures during sub‐project implementation is the responsibility of the Sub‐Borrowers. Any costs associated with the government process and cost of monitoring shall be shouldered by the Sub‐Borrower. The primary purpose of compliance monitoring is to ensure the implementation of sound and standard environmental procedures as defined during the project preparation. Specifically, it aims to: (i) monitor project compliance with the conditions set in the safeguards instruments and applicable laws, rules and regulations; and (ii) provide a basis for timely decision‐making and effective planning and management of the mitigating measures through the monitoring of actual project impacts vis‐a‐vis the predicted project impacts.
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A. Environmental Safeguards
Applicable Policies
25. As per Bank’s classification, this project has been categorized as a Financial Intermediary (FI) and LBP as a Borrower will ensure that the Bank’s policies and national regulations on the environment are followed, and appropriate instruments prepared. Under the FI category, it is possible to have sub‐projects belonging to environmental categories A, B, and C as per Bank’s classification. The procedures outlined for each of these types of environmental categories will be followed by the Concessionaires and LBP. 26. The following national laws and regulations relevant to the environmental safeguards and the protection of water bodies from pollution provide the basis for the overall framework of the ESSF:
• Presidential Decree (PD) No. 1586, 1978 on the EIS System; • Republic Act No. 9275, 2004 on the Philippine Clean Water Act; • Presidential Proclamation No. 2146, 1981 on Environmentally Critical Projects / Areas; • Administrative Order No. 42 by the Office of the President 2002, describing categories
of projects and areas subject to the EIS System; • DENR Administrative Order No. 2003‐30, the Implementing Rules and Regulations (IRR)
for the Philippines EIS System (2003), and its Revised Procedural Manual issued August 2007;
• Memorandum Circular No.: 2010‐14 Standardization of Requirements and Enhancement of Public Participation in the Streamlined Implementation of the Philippine EIS System; and
• Republic Act 9003, 2000, Ecological Solid Wastes Management Act.
Key Steps
(i) Identification of Sub‐projects According to Selection Criteria
27. In identifying the sub‐projects, including the location of the site, the Concessionaires will take into account relevant environmental and social considerations. This will include assessment of the various sewage treatment options, locations to minimize potential environmental risks (noise, odor, pumping, discharge from STP, etc), availability of land, as well as suitability of the project in a given neighborhood that lead to the selection of these investments.
(ii) Environmental Screening
28. The environmental screening that would be carried out would identify key potential environmental issues that could arise from the proposed project. The screening process will
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also be used to determine the environmental category of the project (A, B, C) as per Bank’s requirements. The success of an environmental screening is dependent on adequate baseline environmental data, technical expertise, good planning, management support, and coordination with key players and decision makers. 29. With respect to environmental screening of sub‐projects, the national regulations and World Bank policies are considered together since both are impact‐based and will require the Sub‐Borrower to identify and assess potential impacts to environmental components such as water, air, land and natural habitats and biodiversity. The screening results will be cross‐checked with national regulations, in order to determine the applicable EA documentation requirements. Three safeguards instruments are specified in the regulations: (a) EIA report; (b) Initial Environmental Examination (IEE); and (c) Project description. 30. Annex 1 provides an Initial Screening Form for potential environmental and social safeguards issues. This form facilitates the determination of applicable World Bank safeguards policies as well as those relevant to national legislations. It provides the checklist for screening, classifies environmental category and identifies the safeguards instruments required.
(iii) Project Preparation and Documentation
31. The environmental safeguards instruments for each sub‐project will be determined based on the screening procedures, as follows. All documents will be prepared by the Sub‐Borrowers and submitted to LBP for review. After the documents are acceptable to LBP, it will send the documents to the Bank for review and clearance for the Bank to conform financing of the sub‐project. All safeguard documents will be subject to prior review by the Bank:
• Category A: Sub‐projects will require an EIA that includes an Environmental Contingency Plan and an EMP prepared in accordance with Bank requirements, the terms of reference for which can be found in Annex A of the Bank Policy OP/BP 4.01. Moreover, all bidding documents will include a standard contract clause for implementing and reporting compliance to the EMP, occupational health and safety protection measures and chance finds of physical cultural resources. The Sub‐Borrower will consult with the Borrower during preparation of all safeguards documents for Category A projects. The Sub‐Borrower will set up an Environmental Guarantee Fund (EGF) in agreement with DENR for this project. The EGF is money reserved by the Sub‐Borrowers in an escrow bank account that will be used to rehabilitate or restore destroyed habitats or degraded ecosystems or compensate any project affected individual caused by any environmental negligence of the project. An EGF committee shall be formed to manage the Fund and shall be composed of representatives of DENR, affected communities, concerned LGUs and relevant government agencies identified by DENR.
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• Category B: Sub‐projects will require an EIA or simplified EIA (i.e., IEE, as required under the national laws and regulations) and an EMP (as per the Bank policy). The sub‐project specific EMP and standard environmental codes of practices, including coverage of how to handle chance‐finds of physical cultural resources, will be included in all construction contracts/bidding documents.
• Category C: Sub‐projects that are rated Category C require a Project description and an EMP depending on the size and nature of their activities and will need to comply with the regulatory requirement for registration. Investments that will have minimal impact on the environment will be classified under Category C.
(iv) Review and clearance of environmental safeguards documents
32. Approved Environmental Compliance Certificate (ECC) and other relevant government permits and clearances will be transmitted by the Sub‐Borrower to the Borrower. The Borrower will exercise environmental due diligence (EDD) by keeping records of sub‐project EA reports, feedback / technical information, and ECCs / Certificates of Non‐Coverage (CNCs). 33. The requirements for review and clearance of the environmental documents by the WB are as follows:
• Category A: The EIA/EMP and other relevant documents for all Category A sub‐projects will be subject to WB standard prior review and clearance procedures prior to approval of the sub‐project.
• Category B: The Simplified EIA (or IEE) and EMP for Category B sub‐projects will be subject to WB prior review and clearance before approval of the sub‐project.
• Category C: If an EMP is necessary, the WB will conduct a review of the document prior to confirming financing for the sub‐project.
34. Safeguard documents will be subject to consultation and disclosure in an accessible place, in a timely manner, in a form and language understandable to key stakeholders, prior to the finalization of the documents. Particular attention will be given to ensure project‐affected persons have adequate time and ready access to draft documents before consultation takes place.
(v) Implementation ‐ Supervision, Monitoring and Evaluation
Supervision
35. The Sub‐Borrowers will be responsible for the implementation of the EMP. Annex 6 contains Safeguards Procedures for Inclusion in the Technical Specifications of Contracts for the Sub‐Borrowers’ Contractors. The Borrower will visit the sub‐project areas as needed throughout
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project implementation in order to supervise the implementation of the safeguards instruments to ensure they are implemented in compliance with the Bank policy requirements. Roles and responsibilities of each institution involved are described in detail in Section VI Institutional Arrangements.
Monitoring and Evaluation
36. The primary purpose of compliance monitoring is to ensure the implementation of sound and standard environmental procedures as defined during the project preparation. Specifically, it aims to:
• monitor project compliance with the conditions set in the ECC; • monitor compliance with the EMP and applicable laws, rules and regulations; • provide a basis for timely decision‐making and effective planning and management of
environmental measures through the monitoring of actual project impacts vis‐a‐vis the predicted impacts in the EA /EMP as well as corrective measures to be taken in cases of non‐compliance to the EMP. DENR Procedures
37. In addition to the monitoring and evaluation conducted by the Sub‐Borrower and reviewed by the Borrower and the Bank, all projects covered by the Philippine EIS System which have been issued an Environment Compliance Certificate shall be subjected to periodic monitoring by the DENR (i.e., compliance and impact monitoring in accordance with established procedures and protocols). Within the framework of the Philippine EIS System, the responsibilities of monitoring projects are lodged with the EMB regional offices and the Laguna Lake Development Authority (LLDA). As a minimum requirement in compliance monitoring, DENR‐EMB and LLDA shall focus on the following:
• status of Sub‐Borrower’s delivery of commitment made in its EMP (or, in the case of IEE Report, the Summary Matrix of Impacts);
• effectiveness of the committed EMP in mitigating project’s environmental impacts; and • meeting the terms and conditions of the ECC.
B. Social Safeguards Applicable Policies
38. In terms of national legislations in the Philippines, the key legal and administrative policies relevant to involuntary resettlement are:
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• The Bills of Rights of the Constitution of the Republic of the Philippines states: In Article III, Section 1, “No person shall be deprived of life, liberty, or property without due process of law, nor shall any person be denied the equal protection of the laws.” In Article III, Section 9, “Private property shall not be taken for public use without just compensation.”
• Executive Order 1035 (1985) requires conducting of Feasibility Studies, Public Information campaign, Parcellary survey and assets inventory. It also provides for compensation for acquired land at fair market value based on negotiations between owner and appraiser; relocation assistance to tenants, farmers and other occupants; financial assistance to farmers and agricultural tenants equivalent to the average harvest for the last three years but not less than P 15,000/ha; Disturbance compensation to agricultural lessees equivalent to 5 times the average gross harvest during the last 5 years; and compensation for improvement on land acquired under Commonwealth Act (CA) 141.
• CA 141, Public Land Act (1936) institutes classification and means of administration,
expropriation and disposition of alienable lands of the public domain.
• Supreme Court Ruling (1987) defines just compensation as fair and full equivalent to the loss sustained to enable affected household to replace affected assets at current market prices.
• Republic Act 6389 provides for disturbance compensation to agricultural leases
equivalent to 4 times the average gross harvest in the last 5 years.
• Republic Act 8974 (2000) which facilitates the acquisition of ROW, site or location for National Government Infrastructure Projects and for other Purposes. Implementing Rules and Regulations of RA 8974 was also issued. This mandates the use of replacement value of land and structures (without depreciation).
• Republic Act 7279 (1992) "Urban Development and Housing Act" mandates the
provision of a resettlement site, basic services and safeguards for the homeless and underprivileged citizens.
• Republic Act 7160 (1991) "Local Government Code" which allows the LGUs to exercise
the power of eminent domain for public use. 39. In addition to the prior national requirements, World Bank’s Policy on Involuntary Resettlement (OP 4.12) is applicable. The objectives and main principles of the Policy can be summarized as follows:
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• Involuntary resettlement should be avoided where feasible, or minimized, exploring all
viable alternative project designs. • Where it is not feasible to avoid resettlement, resettlement activities should be
conceived and executed as sustainable development programs, providing sufficient investment resources to enable the persons displaced by the project to share in project benefits.
• Displaced Persons should be meaningfully consulted and should have opportunities to
participate in planning and implementing resettlement programs.
• Displaced Persons should be assisted in their efforts to improve their livelihoods and standards of living or at least to restore them, in real terms, to pre‐displacement levels or to levels prevailing prior to the beginning of project implementation, whichever is higher.
40. The key gaps between the local laws and regulations and provisions of the World Bank’s Policy on Involuntary Resettlement (OP 4.12) include:
• Philippine Constitution, Article XIII, Section 10: Urban or rural poor dwellers shall not be evicted nor their dwellings demolished, except in accordance with the law and in a just humane manner. Focus is given on urban poor as per UDHA. Limited assistance or protection is given to the rural poor unless they are tenured agricultural tenants.
• R.A. No. 8974, Sections 8, 9, 10 and 13 provides compensation of affected properties
based on fair market value. However, land donation is the first approach to the acquisition of private land.
• Notwithstanding the ruling by the Supreme Court, none of the laws and regulations
clearly provide for compensation at replacement cost.
• Income restoration/ rehabilitation assistance is available only for resettled beneficiaries of the government’s socialized housing.
• There is no policy for displaced vendors and employees of micro/small enterprises that
have to shut down their business / to be relocated.
41. The Resettlement Policy Framework (RPF) for the project has been prepared to address any involuntary land acquisition or resettlement. The RPF, provided in Annex 10, includes specific provisions to ensure that compensation for affected lands and other assets is provided
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at replacement value to all the Displaced Persons (DPs) including those who may lose access to livelihood due to the project. The RPF is consistent with the provisions of the World Bank’s OP 4.12 and national laws and regulations in the Philippines. It addresses namely gaps between the provisions of the World Bank’s Policy on Involuntary Resettlement (OP 4.12) and local laws and regulations. 42. Entitlements and compensation for the types of losses and DP categories shall be guided by the Resettlement Entitlement Matrix shown in the RPF in Annex 10. 43. In general, the provisions of the ESSF, and RPF, would be applicable in all the sub‐projects that result in adverse social impacts, permanent and temporary, due to the acquisition of land and other assets or causing loss of incomes and livelihood. However, the requirements for surveys and documentation would vary depending upon the mode of acquisition of land by the Concessionaires. Where the land is obtained through direct negotiations between the Concessionaires and the land owners and the responsibility to relocate any occupants on the land rests with the land owners, the Concessionaires should ensure that the compensation and other assistance provided to affected households is adequate to enable affected households to restore their livelihood and income levels to pre‐displacement levels. In this respect, Concessionaires should provide a RCR to LBP to demonstrate that the procedures carried out for the land acquisition and the compensation provided are in line with the ESSF and that the process to acquire land through open market purchase is in accordance with the proposed protocol specified in the ESSF.
Key Steps 44. The Sub‐Borrowers will be responsible for providing resources for all activities related to the resettlement planning and implementation. Where in a subproject OP 4.12 is triggered, the Concessionaires will carry out necessary studies (census, inventory of assets, etc.) and prepare necessary documents (Resettlement Action Plan (RAP) or an Abbreviated Resettlement Action Plans (ARAP). The scope and contents of the RAP or an ARAP will follow the provisions of the World Bank’s OP 4.12 Annex A. Each RAP, ARAP and RCR will include detailed cost estimates for compensation and relocation of DPs disaggregated by category of DPs and types of impacts and assets lost. Cost estimates will make adequate provisions for contingencies. In case of any cost over‐runs , concerned Concessionaire will provide additional funds in a timely manner to ensure that the implementation of involuntary resettlement activities is completed according to the schedule. All costs in regards to the acquisition of land and other assets, compensation and financial assistance to affected households would be included towards cost of the sub‐projects. The procedures that would be followed to meet the safeguard requirements are outlined below.
(i) Identification of sub‐projects according to selection criteria
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45. Potential sub‐projects are identified by the respective Concessionaires based on the overall project objectives and needs assessment. First step in this respect would be on selection of sites and getting general agreement from the communities in the adjoining areas before the site is considered as final. In the past, many neighborhoods resisted construction of STPs in their immediate vicinity. Together with the Not in My Backyard (NIMBY) syndrome, many have expressed concerns on possible foul odor and noise. To mitigate these fears, the subproject proponents have incorporated community tours to operating STPs as part of the community awareness programs. One of the sub proponents has also incorporated community facilities in their design. In consideration of safety and health, basketball courts, playgrounds and similar structures have been made for receiving community acceptance of the project. At this stage, the Concessionaires are also required to identify the types, degree and scale of potential social impacts of the sub‐project. To correctly identify the relevant social issues and to assess the type and level of information required during subsequent field investigations, particular attention will be paid to adverse impacts to the affected community, such as loss of land and other fixed assets and the number of persons marginally or severely affected and the types of vulnerable groups affected. Preliminary social and land acquisition assessment will also help in identification of risks and in deciding whether or not to proceed with the project or to consider alternatives to ensure that the adverse impacts are avoided, or minimized if cannot be avoided. During this stage, the sub‐project proponent should identify key stakeholders, local NGOs and DPs. They should then undertake public consultation to: (a) provide information on the project, its benefits and impacts; (b) obtain feedback from the public; and (c) discuss the plan for the participation process and the roles of the community, NGOs and other key stakeholders.
(ii) Social Safeguards Screening
46. The Concessionaires are required to carry out screening of the project to determine scale of impacts: marginal or severe and the consequent need for further field investigations, surveys and documentation necessary in order to meet the requirements specified in the ESSF. In cases where social screening results to significant social impact, a social assessment will be undertaken as part of the Environment Assessment (EA), as specified in para 3 of OP 4.01, by the Sub‐Borrower irrespective of whether there is land acquisition or involuntary settlement. Additionally, the Concessionaires will also screen the sub‐projects for national/provincial laws and regulations regarding land acquisition and involuntary resettlement.
(iii) Project Preparation and Documentation
Procedures for Land Acquisition 47. Land acquisition for subprojects will be carried out mainly through two modes depending upon the ownership of potential sites for sub‐projects.
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o Involuntary Resettlement (Land Acquisition invoking OP 4.12)
48. Following modes of land acquisition will trigger WB’s OP 4.12 and the Concessionaires would be required to conduct necessary field investigations/surveys in accordance with the provisions of the RPF for resettlement plan preparation and implementation:
• Grant of Right–Of‐Way (ROW): Where sewer/wastewater mains/distributary lines pass through any private properties, the sub‐project proponent may seek the imposition of an Easement of Right‐of‐Way (ROW) provided for under the Philippine Civil Code. In such cases, a ROW easement agreement will be executed by the property owner and the sub‐project proponent, whereby the former will grant the latter the right to use the affected portion of the lot, as ROW, but the owner retains ownership of the said portion of the lot. In these cases and depending upon the agreement between the sub‐project proponent and the owner/s of the property, either the easement rights are given free of any charges or on some payment by the sub‐project proponent to the owner. The payment can be based on the value of the affected portion of the lot determined by an independent appraiser according to internationally accepted norms. In addition, the sub‐project proponent is required to compensate the owner for any improvements and/or structures on the land affected by the ROW at replacement cost. The sub‐project proponent will enter the easement area after the provision of the full payment for the easement to the property owner. The ROW easement agreement will be immediately registered with the Registry of Deeds.
• Usufruct: The Sub‐project Proponent may also acquire a property through usufruct. The property owner retains the ownership of the land, while the sub‐project proponent enjoys the benefit of the use of land. The sub‐project proponent and the property owner will execute a usufruct agreement. The agreement will cover the rights and responsibilities of the two parties, including the duration of the usufruct which should not be lower than the project life.
• Lease Agreement: The sub‐project proponent may also acquire lands through lease agreements with the rightful property owner. The sub‐project proponent and the property owner will execute a Lease Contract. The contract will cover the rights and responsibilities of the two parties, including the duration of the lease which should not be lower than the project life. Under this agreement, the land owners continue retain legal ownership of the land parcel. All land transaction should be registered with the Registry of Deeds for annotation in the title of subject property.
o Expropriation. Although both the MWCI and MWSI are private corporations, they are Concessionaires under the MWSS, which is a public enterprise. Both the Concessionaires have the option to acquire private properties for their sub‐projects using the legal process, eminent domain through MWSS. However,
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none of the Concessionaires have ever used eminent domain to acquire private properties.
o Open Market Purchase – OP 4.12 is not triggered in this case.
49. Open Market Purchase. Under the ongoing Manila Third Sewerage Project (MTSP) the project proponent, Manila Water was completely dependent on the respective Local Government Units (LGUs) to acquire and make the required land available for the project. However, the LGUs failed to acquire land for the project causing severe delays in project implementation. Similar experience in other projects caused severe delays and even cancellation of sub‐projects. Learning from the past experiences and to avoid recurrence of similar problems for this project, the two Concessionaires have decided to acquire the land themselves. Current procedures consisting of ‘open market purchase’ from the land owners, either through the brokers or in direct negotiations based on open market purchase basis, are borne out of experiences from previous projects. However, where open market purchase fail, other forms of land acquisition will be considered. The processes and procedures to be followed for voluntary or involuntary land acquisition are presented here in this same Section (III B Social Safeguards).
50. Therefore, negotiated purchase of private assets is the most preferred mode of land acquisition by both the Concessionaires. Once a potential land parcel is identified, both the Concessionaires contract professional appraisers to obtain information on the legal and tenure status of the land in question, its market value and other issues that may be of relevance. Based on the findings of the appraisal reports, the Concessionaires enter into negotiations with the land owner. Since both the Concessionaires are private corporations, they enter into negotiations with the land owners either indirectly through a real estate agent (as in the case of Manila Water) or directly (as in the case of Maynilad through their ROW unit)3. Once the agreement is reached, the property owner issues a written permit to the sub‐project proponent to enter the property and a contract of sale is subsequently executed between the property owner and the sub‐project proponent. Since the Concessionaires plan to follow the open market purchase using direct negotiations with land owners for all future land requirements, a protocol is proposed with the key objectives as below:
• to ensure a transparent and consultative process;
3 In Maynilad’s case, the process is followed through these steps: 1) long list of sites identified based on Options Analysis; 2) prioritization of candidate sites based on cost, land availability, and extent of resettlement required; 3) initial community consultations to determine the NIMBY syndrome; 4) owner’s offer to sell outlining the price and other conditions; 5) buyer’s decision to proceed with contract to sell; 6) preparation of the safeguards documents; 7) owner’s actions prior to sale; 8) deed of absolute sale; 9) land acquired (title transfer) ; and 10) construction of STP to start (after Design Build Contractor is selected)..
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• to ensure that compensation paid is at or above prevalent market prices to enable all affected land owners to replace their affected assets;
• to ensure that all the affected land owners are better‐off due to the project; and
• to document public consultation and negotiation proceedings.
51. The protocol, presented below, will be followed by both the Concessionaires for the Bank funded projects.
Key provisions of the Protocol include:
• Inventories of affected land and other fixed assets would be prepared in consultation with affected land owners and submit the same to the Borrower and the Bank;
• All land would be free from any disputes on ownership and encumbrances;
• Concessionaires to ensure that the subprojects will in no way cause adverse impacts on sources of incomes and livelihood of adjoining communities;
• Negotiations for direct purchase would be carried out in a transparent manner;
• All negotiation proceedings will be documented and the final agreement would be signed by the negotiating parties;
• The negotiated amount will be fully paid after the submission of the required documents; and
• Concessionaires will submit completed documents including maps together with the subproject proposals to LBP and the World Bank to show the process used for obtaining the required land.
52. The types of surveys and field investigations required and social safeguards documents that would need to be prepared for a sub‐project will depend upon the degree and scale of the impacts and the method adopted for acquisition of private assets for the sub‐project. Depending upon the degree and scale of impacts and based on the data collected through the field investigations, a full RAP or ARAP will be prepared. The scope and contents of the RAP or an ARAP will be consistent with the provisions of the World Bank’s OP 4.12, Annex A. In cases where the sub‐project affects and/or displaces more than 200 persons a time‐bound RAP will be prepared in accordance with the provisions of the RPF (Annex 10). In cases where the impacts of the sub‐project are marginal such that less than 200 persons are affected and/or displaced, or where the impacts are minor, an ARAP should be prepared. In cases where land has already been acquired, or is to be acquired voluntarily, a due diligence report or its equivalent will be prepared.
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53. Where the land is to be acquired using the power of eminent domain (Involuntary land acquisition), the Sub‐Borrower is required to conduct surveys to collect information on census of affected households, inventory of losses and socio‐economic characteristics as specified during the screening. Prior to undertaking the survey the project proponent should implement a public information campaign to describe the project components, types of impacts, content and schedule for the census and inventory or other background surveys. 54. Where in a sub‐project required land is obtained under open market purchase through direct negotiations with the land owner, as is the current practice by the MWCI and MWSI, the Sub‐Borrower will hire a professional appraiser to conduct appraisal, including valuation, of the potential site before any decision is taken to proceed with the negotiations with the land owner/s. The Sub‐Borrower is also required to conduct detailed survey of the occupants and improvements on the land parcel to record all types of potential losses, if any, due to the acquisition of the land. As per the agreement between the Sub‐Borrower and the land owner, if the occupants on the land and their affected assets are to be relocated, the Sub‐Borrower should ensure that the affected households are provided sufficient support and financial assistance to enable them to improve, or at least restore their livelihood to pre‐displacement level. 55. When negotiations for acquisition of private assets are carried out on a Open market purchase basis, cases will be carefully documented so as to ensure they meet the policy requirements to be considered, such as land free of encumbrances, no coercion, and ability of the land owner to say no to any sales without the threat of eminent domain land acquisition. ESSF provides a protocol to define objectives, and procedures (see para 49‐51 in this section on Open Market Purchase). 56. In cases where the sub‐project proponent has already acquired the land needed for the project and that the occupants of the land acquired have been relocated as an agreement between the landowner and the real estate agent of the Sub‐project Proponent, as in the case of The North and South Pasig Sewerage System STP of Manila Water, a RCR will be prepared. The content of the Completion Report are: project description, description/census of the occupants/project‐affected‐persons and inventory of their affected assets and properties including crops and trees (if any), compensation and other assistance provided to them, possible location where the occupants/DPs will be relocated and a detailed description of how the land was acquired. Documents required are Minutes of the consultation meetings with the occupants, Property (land) Appraisal Report. Based on the RCR, the Borrower will conduct Due Diligence (Resettlement Audit) which will be reviewed by the Bank to check whether the acquisition of land and other assets is consistent with the requirements of the ESSF, and will develop a plan to fill any gaps.
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Method of Valuation of Affected Assets 57. The ESSF (and the RPF) provides for compensation for land and other affected assets at replacement cost. To meet the above objectives, the Concessionaires will follow the valuation procedures for different types of affected assets as below:
• Land: The Concessionaires will contract professional appraisers for valuation of affected land to determine prevalent market prices. In case of ‘open market purchase’ of land for subprojects, the negotiations for the land would be based on the market prices determined by the appraisers. Where land is acquired under eminent domain, the final prices of affected land will be at least equal to or higher than the prevalent market prices to ensure that the DPs are able to replace affected land at current market prices.
• Structures. The Concessionaires will ensure that the compensation for affected structures is paid at replacement cost based on current market prices for material and labor. The compensation for affected structures will be paid without any depreciation and deductions for salvaged material by the DPs. For the purpose, the Concessionaires will contract professional appraisers to conduct market surveys to determine prevalent market prices for material and labor to arrive at rates for different types of structures.
• Trees and crops. Compensation rates for affected trees provided by DENR and for affected crops by Department of Agriculture.
Review and clearance of social safeguards documents
58. The sub‐project proponent will submit all social safeguards documents (ARAP and/or RAP, RCR) to the Borrower, who will review these documents for compliance with the Social Safeguards Framework. The Borrower will approve, refuse approval or request revisions/reformulation of these documents after review and clearance by the Bank. The Borrower will submit to the World Bank all RAPs, ARAPs and RCRs after it has ensured that the documents meet the requirements of the ESSF before the subproject is approved for implementation.
Implementation ‐ Supervision, Monitoring and Evaluation
59. The Sub‐project proponents will supervise and monitor the implementation of the social safeguards in each sub‐project to ensure that they are implemented in accordance with the approved documents and are in compliance with the ESSF. Periodic progress reports will be prepared and submitted to the Borrower and to the World Bank on a regular basis. The Borrower, through its Programs Management Department II (PMD‐II) will carry out regular monitoring of safeguards implementation of the two Concessionaires and consolidates for submission to the World Bank. In case of non‐compliance with the provisions of the ESSF, the LBP, in consultation with the respective subproject proponent discuss appropriate measures or
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remedial actions and implementation schedule for such measures/actions. Subproject proponent will be required to implement such measures within the agreed time‐frame at its own cost, failing which LBP would take additional measures, which could include suspending further disbursement, until the remedial measures are implemented to the satisfaction of LBP. Monitoring and Reporting requirements are described in Section IV Subproject Monitoring and Audit. 60. Land acquisition and relocation of affected households cannot commence until the RAP or an ARAP has been reviewed by the Borrower and the Bank. The RAP or an ARAP will include implementation schedule wherein all resettlement activities will be coordinated with the civil works schedule. Once the RAP or ARAP is approved by LBP and the Bank, the Borrower will issue its no objection letter to the Concessionaires to allow construction activities to begin. No demolition of assets and/or entry to properties will be done until a DP is fully compensated, except when a court of law grants a Writ of Possession to the Sub‐project Proponent for the subject property in expropriation. Where the land has already been acquired, the construction activities will begin only after the RCR for each subproject is reviewed and approved by the Borrower and the Bank.
C. Retroactive Financing 61. Retroactive financing is possible as long as the procurement procedures followed are in line with that of the project and the sub‐project eligibility criteria are satisfactorily met. Payments made within 12 months before the signing of the Loan Agreement would be eligible for retroactive financing and the total retroactive financing can be up to 20% of the value of the Bank loan. For sub‐projects that are retroactively financed, a due diligence post‐review will be carried out for both environmental and social impacts as follows:
• Environmental impacts. The Borrower will review the Sub‐Borrower’s sub‐project implementation to ensure compliance with environmental management requirements under the ESSF. If there are any outstanding environmental issues, necessary mitigation measures will be agreed and implemented to address them.
• Social impacts. In subprojects where land has already been acquired, the Sub‐Borrower will review the sub‐project to determine compliance with applicable national laws and provisions of this ESSF, including consultation and disclosure requirements. The Borrower, on its part, will carry out due diligence to determine how the land was acquired and whether or not there are any outstanding claims, issues or risks associated with land acquisition, compensation or ownership. If necessary, additional mitigation measures will be developed and implemented. For purposes of due diligence, the Borrower will consider two levels of assessment: i) for land acquired two years prior to the first identification mission by the Bank to determine whether or not the acquisition of land and resettlement was carried out in accordance with the national laws and
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regulations land whether there are any pending claims and legal issues; and ii) for land acquisition from the date of the first identification mission by the Bank or where land acquisition activities are currently undergoing or recently been completed, the provisions of the Bank’s OP 4.12, and the ESSF will be applicable.
62. The Social and Environmental Compliance Report (SECR) will be prepared by the Sub‐Borrower to briefly describe the safeguards aspects of each retroactively financed sub‐project. The post‐review reports and necessary mitigation measures will be reviewed by the Borrower and the World Bank. Compliance with the ESSF requirements is a condition for retroactive financing under the project. For Maynilad’s investments, resettlement and land acquisition are not required for Ayala‐Alabang STP Rehabilitation because it is an existing facility. Retroactive financing is being considered for this plant where the contract for rehabilitation has already been awarded (PhP 51.6 million). At appraisal, the Bank will also confirm its financing for the Plant.
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IV. Sub‐project Monitoring and Audit 63. The implementation of the sub‐projects would be carried out by the Concessionaires, including actions related to safeguards. LBP will monitor the project implementation and submit to the Bank a SECR on a semi‐annual basis that will state how the Bank’s policies are being met and what corrective actions, if any, are being taken. The SECR would be prepared by the Borrower, based on inputs provided by the Concessionaires. LBP as a Borrower of the Bank loan will oversee safeguard operations and ensure that the Sub‐Borrowers are in compliance with the procedures outlined in this ESSF. In case of non‐compliance with the provisions of the ESSF, the LBP, in consultation with the respective subproject proponent discuss appropriate measures or remedial actions and implementation schedule for such measures/actions. Subproject proponent will be required to implement such measures within the agreed time‐frame at its own cost, failing which LBP would take additional measures, which could include suspending further disbursement, until the remedial measures are implemented to the satisfaction of the Borrower. 64. Each Concessionaire will monitor compliance with the conditions of the ECC and the EMP and carry out the requisite data collection during both the pre‐construction and construction phases. The Concessionaires must satisfy this requirement by submitting a Sub‐Borrowers SECR, which will include an Environmental Monitoring Plan (EMoP)4 and a Self‐Monitoring Report (SMR) on a semi‐annual frequency ( i.e., within January and July of each year). Copies of the submitted Sub‐Borrower’s SECR and SMR must be provided in two sets to LBP for reference and review purposes. LBP will be responsible for monitoring and evaluating the SECRs and SMRs submitted by the Sub‐Borrowers. One set of the SECR received by the Borrower will be transmitted to the Bank for further review. The Sub‐Borrower’s SECR will include the following: information on the data collection; discussion on the compliance or non‐compliance to the RAP, EMP and ECC; corrective actions, if any; conclusions and recommendations; and photographs, as needed.
65. External Monitoring. In sub‐projects with significant (200 persons or more) resettlement, including physical and economic displacement of large number of households, the Sub‐Borrower will, in consultation with the Borrower and the Bank, contract an external monitoring agency / consultant group, with adequate experience in involuntary resettlement to conduct periodic independent monitoring of resettlement implementation by the
4 EMoP defines selected indicators for ensuring that mitigation measures are being implemented and are effective (e.g., if there is a mitigating measure to control noise during construction, the monitoring plan should include noise measurements during construction). It ensures the project is complying with national regulations and WB Safeguard requirements, addresses concerns which may rise during the public consultation, and identifies authorities responsible for monitoring including estimated related costs.
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Concessionaires in the sub‐project/s. The external monitors will submit their periodic monitoring reports to the Borrowers and a copy of its monitoring report to the Bank directly.
66. During the sub‐project developmental phase, the Sub‐Borrower shall furnish the SECR to LBP for the pre‐construction and construction stages of the sub‐project. Once construction works are completed, the Sub‐Borrower shall submit a statement of environmental closure for the construction phase to the LBP and DENR‐ Environment Management Bureau. 67. During the sub‐project operational phase, the Sub‐Borrower shall continue the submission of SECRs and start the submission of the SMR to LBP, DENR‐EMB on a quarterly basis. The Sub‐Borrower will also conduct an Annual Third Party Environmental Performance Audit and submit the Audit report to the LBP and DENR. The Sub‐Borrowers will pay for the audit report from their own resources. The terms of reference for the Audit is provided in Annex 8. If any irregularities are observed in the third party audit, the LBP will report its findings to the Sub‐Borrower and discuss measures to be taken.
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V. Public Consultation, Participation and Disclosure
A. Introduction
68. Information disclosure and public consultation are important and necessary in sub‐project preparation and implementation. These enable sub‐project affected people and other stakeholders to participate in and contribute to the sub‐project planning and implementation, and thereby help minimize adverse impacts and maximize sub‐project benefits. The level of public consultation and the scope of information dissemination will be commensurate with the environmental category of the sub‐project and the significance of the social impacts. 69. The draft ESSF was an object of the public consultation with key institutional stakeholders on October 5, 2010. The ESSF was presented and discussed in detail during the consultation, which was attended by stakeholders with representations from various national and local government agencies and select non‐government institutions. The summary of the proceedings is presented in Annex 7. Furthermore, copies were made accessible to the public through the Department of Environmental and Natural Resources, the Borrower and the Sub‐Borrowers through their website. Comments received have been incorporated. B. Public Consultation Requirements for Environmental Safeguards 70. During the EA process for Category A and B sub‐projects, as early as possible, the Sub‐Borrower will consult with project‐affected groups and local nongovernmental organizations (NGOs) about the project's environmental aspects and takes their views into account. For Category A projects, the Sub‐Borrower consults these groups at least twice: (a) shortly after environmental screening and before the terms of reference for the EA are finalized; and (b) after the draft EA report is prepared. In addition, the Sub‐Borrower consults with such groups throughout project implementation as necessary to address EA‐related issues that affect them. These groups may be represented in the Multipartite Monitoring Team that the DENR may organize to serve as the monitoring arm of the project. C. Public Consultation and Participation in Social Safeguards 71. Public consultation and participation ensures project acceptability and fosters good community relationship between the community, community leaders and the Sub‐project proponents. MWCI and MWSI have Zone Managers and Business Centers to work closely with communities to ensure better reception of their projects. The two Concessionaires will consult and provide relevant information to the community as early as possible. Information provided will include: the purpose, nature and scale of the project; and the duration of the proposed
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activities and of any risks to and potential impacts on the community. Documentation is the responsibility of the Concessionaries which will provide updates and feedbacks to the community, as needed, on the project activity. Public consultation and information dissemination on key aspects of resettlement will be carried out as a continuous activity throughout the planning and implementation phase of the subprojects. 72. Timing of local disclosure will vary depending on the type of assessment involved, the level of risks and impacts and the stage of the project’s development or operation. A key minimum requirement that should be taken into account when determining timing of local disclosure in all cases is, if local disclosure has not already taken place at the time of involvement of the Sub‐project Proponent, the Sub‐proponent should commence local disclosure activities as early as possible. D. Disclosure
73. Environmental and social safeguard information to be disclosed will include, at a minimum: sub‐project information, impacts, and proposed mitigation measures. Disclosure could be done through community meetings, posters, booklets, newspapers, and the internet. Local disclosure of information should be targeted, at a minimum, to the directly affected communities (including project‐related workforce, where applicable). LBP and the two Concessionaires will be responsible for the making the information publicly available. Public disclosure of documentation shall be in accordance with LBP’s Executive Order No. 073 series of 2009 on Guidelines on Classification, Handling, Access and Disclosure of Information Assets, including any amendments thereof. 74. Documents to be disclosed include the ESSF, EA, EMP, SA, RAP or ARAP. These documents are made publicly available at public places accessible to project‐affected‐groups, NGOs and other interested stakeholders through the World Bank’s InfoShop. Documents will also be posted in the internet sites of LBP and the two Concessionaires. Where necessary, summary of RAP or an ARAP, particularly the summary of losses and entitlements, will be made available in the form and language understandable to the DPs. Whenever an EA is required, the Sub‐Borrower will prepare it as a separate free‐standing document which should be publicly available, accessible to project‐affected groups and local NGOs in accordance with OP/BP 4.01 prior to the appraisal of the project by the Bank.
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VI. Institutional Arrangements 75. The key institutions having accountability for the implementation of this Framework are: (i) LBP, as the Borrower; and ii) MWCI and MWSI as the Sub‐Borrowers, who are the sub‐project proponents and implementers. The following GOP institutions – DENR, LLDA and LGUs ‐ have regulatory oversight to ensure that the project is compliant with relevant national laws and regulations. A brief description of these institutions together with their roles and responsibilities in planning and implementation of sub‐projects is presented in Table 1. 76. It is the responsibility of the Sub‐Borrowers to carry out the necessary EA required by the ESSF, and to obtain the environmental clearances for each sub‐project before starting the construction. Sound environmental practices have to be incorporated into the sub‐project design and implementation, and potential negative impacts will have to be mitigated to acceptable levels / standards. The Sub‐Borrowers are responsible for the quality and accuracy of the information in the EA document, as well as the transmission of the EA documents to DENR. Annex 2 provides a list of the environmental safeguards documents for a typical sanitation and sewerage project. Annex 3 provides a typical Terms of Reference for the conduct of an EIA also for a typical sanitation and sewerage project.
Table 1. Institutional Roles and Responsibilities Sub‐Project EA
process Sub‐Borrower Borrower
Identification/ Screening
Env: Screens and scopes sub‐projects in coordination with relevant agencies. Determines category of sub‐projects as A, B or C.
Soc: Determines level of impact and mode of land acquisition; identifies key stakeholders; undertakes public consultations.
Confirms the category (env); informs the Bank.
Project preparation/ documentation
Prepares and submits to Borrower for review the following documents.
Env • Cat A: EIA that includes Contingency Plan and EMP. • Cat B: EIA or IEE and EMP • Cat C: Project description and EMP depending on size and nature of activities
Soc: ARAP and or RAP, RCR
Reviews documents for acceptability to the Bank.
Review and clearance of documentation prior to appraisal by Bank.
Env: Transmits approved ECCs and other relevant government permits and clearances to the Borrower.
Soc: Submits safeguard documents (RAP, ARAP, RCR) to Borrower.
Exercises environmental due diligence
Reviews documents acceptable to the Borrower, submits to the Bank. All environmental and safeguard documents have to be approved by the Bank prior to the Bank confirming its financing.
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Sub‐Project EA process Sub‐Borrower Borrower
Implementation ‐ Supervision, Monitoring and Evaluation
Env Monitors project compliance as per ECC and EMP/ EIS, IEE Submits SECR including EMoP and SMR Conducts Annual Third Party Environmental Performance Audit and Environmental Audit Report Soc: Provides resources for all activities related to the resettlement planning and implementation / Ensures projects are in compliance with the ESSF / Provides periodic Progress reports, incorporating monitoring results, to the Borrower.
Monitors project implementation and submits SECR to the Bank on a semi‐annual basis Reviews Environment Audit Report, Conducts regular monitoring of safeguards implementation for submission to the World Bank.
A. Land Bank of the Philippines (LBP) 77. LBP is the Borrower under the MWMP and will act as the servicing agent of the Government. LBP has demonstrated through its involvement in past Bank projects5 that it has the capacity to review, monitor and supervise project activities including safeguards. LBP will on‐lend the loan funds to the two Sub‐Borrowers, namely: MWCI and MWSI. As the Borrower, it shall perform oversight function to ensure that environmental and social safeguards covenants are complied with. MWCI and MWSI will submit environmental and social safeguards documents (i.e., EA, ECCs, CNCs, EMPs, land titles, RAPs, etc.) to the LBP’s Corporate Banking Department (CBD)‐I. CBD‐I will handle the financial management of the project. LBP will make the funds available for the project.
78. A Project Management Office (PMO) has been created for MWMP. The PMO will be responsible for supervising project implementation and complying with the reportorial requirements of the project. The PMO draws on CBD‐I, PMD‐II, and Environmental Program and Management Department (EPMD) staff as well as the services of a consulting firm that will be hired by LBP if needed (to be funded by its own internal funds) to assist the PMO with: (i) Sub‐project review, evaluation and advisory services; and (ii) Sub‐project implementation management monitoring. The consultant shall ensure compliance of the Sub‐projects with applicable Philippine laws and regulations, the Project Operations Manual and the World Bank policies.
79. LBP will provide the necessary resources and staff to meet the environmental requirements of the framework that will include tapping the personnel of the EPMD to handle the environmental compliance concerns of the project and the PMD‐II for the social safeguards compliance. PMD‐II is the Program Manager for MWMP and will also be responsible for the supervision of the Sub‐Borrowers’ compliance with the agreed framework on procurement, 5 World Bank projects being implemented by LBP include Manila Third Sewerage Project and Support for Strategic Local Development and Investment Project. Past projects include Water Districts Development Project, Rural Finance Project I-III and an ozone depleting project.
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technical and social aspects of the project. The social safeguards counterpart staff of the LBP is now actively involved in the MWMP preparation. One of the functions of the PMD‐II is managing Official Development Assistance (ODAs) funds. It is involved in the safeguards monitoring of the SSLDIP, where the expertise of LBP on social safeguards operations was developed and continues to be demonstrated. They will be assisted by a Consultant to fulfill their monitoring and reporting requirements. Trainings will be conducted, with the assistance of WB, to further enhance the capacity of LBP to process the safeguards requirements of the project.
80. The EPMD will review and validate the sufficiency of the submitted environmental safeguards documents in accordance with the ESSF. The EPMD has three units – one of which is the Environmental Review and Assessment Unit (ERAU), which has enough personnel that will provide the needed support to meet the requirements of the World Bank regarding the environmental aspects of MWMP. The EPMD has the environmental expertise to oversee the Sub‐Borrower in carrying out the EA and attaining environmental compliance to the conditions and statement of the ECC/EMP. The Borrower, through the PMD‐II, as the Program Manager, submits the environmental documents to World Bank for concurrence.
81. The social safeguard documents will be reviewed by PMD‐II and ensure compliance to the conditions and provisions of the ESSF. Similarly, the Sub‐Borrower through the PMD‐II will submit the social safeguard documents to World Bank for review and approval.
82. As the loans for investment financing are channeled to the Sub‐Borrowers through the LBP, LBP shall require sub‐projects to comply with existing national environmental laws, regulations and with applicable Bank policies and EHS Guidelines for Sanitation. The LBP’s EPMD has the environmental expertise to oversee the Sub‐Borrower in carrying out the EA and attaining environmental compliance to the conditions and statement of the ECC/EMP. Environmental safeguards documents may undergo substantive assessment by the Borrower, particularly if pressing environmentally critical issues exist. The Borrower shall conduct EDD for MWMP sub‐projects, as follows:
• Description of both the positive and negative impacts to provide a balanced risk assessment. It will also recognize the DENR as the sole governmental organization that is mandated to issue ECCs based on the Philippine EIS Law (PD No. 1586). Sub‐Borrowers are required to coordinate with the DENR‐Environmental Management Bureau (EMB) to certify through the issuance of an ECC that the proposed sub‐project/s underwent EA prior to finalization and implementation of plans.
• EA, EMP implementation, monitoring and reporting shall be conducted until project completion. Thereafter, the Borrower will continue monitoring of environmental compliance of the sub‐projects consistent with its environmental policy on credit delivery, until the loan is fully paid.
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• LBP‐EPMD is the unit assigned to conduct assessment/ monitoring on the environmental compliance of approved sub‐projects.
B. Manila Water Company, Inc. (Manila Water) 83. The Program Management Department is the overall in‐charge entity for project conceptualization, development, approval, procurement, execution and close‐out. The Program Manager is in charge of all stages of the project until closure and turnover to the Operations Group. The feasibility studies are undertaken by the Program Manager, who makes sure that the bid documents are responsive to the objectives of the project. He/she orchestrates all necessary material, personal and financial resources available to Manila Water to ensure project completion according to the schedule and at the best quality possible.
84. The Project Delivery Group takes charge of project procurement and execution, until commissioning and turnover to the Operations Group. Its main role is to deliver the infrastructure and hardware in working condition to the Facility Manager.
85. MWCI will make funds available to implement the ESSF for the duration of the project. This budget is allocated for the following activities: training, EIA and EMP preparation, setting up of the Environmental Guarantee Fund, environmental performance monitoring, reporting and consultancy services. Funds will also be allocated for resettlement actions and land acquisition.
86. The Operations Group is the ‘owner’ of the facilities. Its biggest groups are the Water Supply Department and the Wastewater Operations Department. Each facility or facility cluster is headed by a Facility Manager or Project Delivery Team who is in charge of day‐to‐day operations, including process control, vendor management and environmental compliance. He/she is already on board from the conceptualization of the project but takes over the facility after commissioning. The Pollution Control Officer (PCO) for the facility or facility cluster is a member of the Facility Manager’s team. 87. The Environment Department is a support team for the Program Management, Project Delivery and Operations Groups, as well as other Manila Water units. It serves as an internal consultant/enabler on any environmental matter (e.g., government policy development, compliance, training, International Standard Organization (ISO) accreditation) and acts as internal auditor, making sure all commitments indicated in the Environmental Management Plans and Environmental Compliance Certificates (ECC) are complied with at any stage of the project. It is also the team responsible for reviewing project briefs and making sure the necessary environmental issues are brought out and addressed. It assists the Program Manager in preparing and reviewing the Environmental Impact Statements (EISs) and/or Environmental Management Plans, and in acquiring the necessary environmental permits from government regulators. As the Corporate PCO of the company, the department ensures that all facilities and
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projects comply with existing environmental regulations, and also implements ‘beyond compliance’ environmental initiatives in support of the sustainability vision of Manila Water.
C. Maynilad Water Services, Inc. (Maynilad) 88. The Environment Management Department (EMD), headed by Senior Assistant Vice President, will take charge of EA, monitoring, and compliance with all the environmental requirements of the project, assisted by the manager and five Environmental Specialists. PCOs prepare Self Monitoring Reports (SMRs) and submit these to the EMD where the document is reviewed and signed by the Corporate PCO, the EMD Head. The document is sent to DENR or LLDA.
89. The EMD consolidates these quarterly SMRs for submission, and as an attachment for the renewal of the discharge permit. It also audits the PCOs as part of the surveillance audit in its ISO 9000, ISO 14000, and OSHAS 1800 Certification. The department ensures that PCOs are regularly informed on the latest environmental requirements, and that they undergo training, as needed. The EMD conducts EIA and EIS‐related studies, scoping studies, and public consultations. It also applies for the ECC and secures its issuance, conducts regular inspections for issuance of all ECCs, and secures other permits relative to environmental requirements.
90. The social safeguard issues will be handled by the EMD unit. The Right of Way (ROW) Unit is responsible in locating/identifying land needed for the construction of project structures and facilities. Once a potential land area has been located, the Wastewater Management Division team conducts community consultation to introduce the project to the community and gather their reactions. If the community accepts the concept of the project, the potential land area is listed and the ROW unit undertakes further investigation of the potential land and its landowner. Land purchase negotiations is also undertaken by the ROW unit.
91. MWSI will make funds available to implement the ESSF for the duration of the project for the following 3 activities: preparation of EIA, EMP and necessary instruments related to Land Acquisition and Resettlement of Displaced Persons; conduct of public consultation; and securing necessary permits; training; EMP implementation and monitoring, and securing an Environmental Management System; and Environmental Health and Safety Certification.
D. Department of Environment and Natural Resources (DENR) and Laguna Lake Development Authority (LLDA)
92. The DENR is the primary national government agency tasked to protect, conserve and manage the country’s environment and natural resources. It is responsible for setting policies, plans and programs and regulating the development and use of the country’s natural resources to ensure compliance to national and international environmental rules, regulations, and guidelines. It enforces various environmental rules and regulations relevant to the construction
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and operation of various development projects including sanitation and sewerage projects. Among the laws enforced by DENR to which this project will have to comply with are the Philippine EIA Law and the Clean Water Act. The role of the DENR in social safeguards is limited to providing rates for affected tree crops in a subproject as and when such a request is made by the Sub‐Borrowers.
93. The LLDA is a government agency that leads, promotes and accelerates sustainable development in the Laguna de Bay watershed where some of the sub‐catchment areas of this project are found. LLDA enforces, among other environmental laws, the Clean Water Act in the Laguna de Bay watershed. LBP as the Borrower will coordinate with both DENR and LLDA to ensure that environmental processes of the project are in line with regulations in Philippines. LBP through its PMO will coordinate with DENR and LLDA.
E. Local Government Units (LGUs) 94. The LGUs being referred to could be the Barangay, City and/or Municipality where the Sub‐project is located. The role of the LGUs is to ‘facilitate’ planning and implementation of sub‐projects in their respective areas, specifically:
• to enforce the National Building Code which includes the issuance of the locational clearance and the building permit of civil works which include wastewater treatment facilities and sewer networks in their area of jurisdiction
• to assist sub‐project proponents in identifying potential land needed for the construction of wastewater treatment facilities;
• to assist in conducting of public information campaign by the Concessionaires and help to ensure the participation of the public, especially the DPs;
• to assist Concessionaires in receiving complaints and grievances from DPs and other stakeholders and resolving the same; and
• to provide assistance to Concessionaires in the enforcement of laws/ordinances regarding encroachment into the sub‐project site or its ROW.
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VII. Capacity Building
95. The capacity of the LBP in managing the social safeguards requirements and procedures is satisfactory. This has been demonstrated in the safeguards management of the SSLDIP, an ongoing WB financed project with LBP as its financial intermediary. The Borrower is able to provide technical assistance to the local government units in the screening of projects for impacts, preparation, implementation and monitoring of 6 ARAPs. The social safeguards counterpart staff prepares and submits to the Bank semi‐annual reports that indicate the status of compliance by LGUs on conduct of social impacts including quality of public consultations held and issues addressed during implementation of mitigation plans. The LBP staff is actively participating in the MWMP preparation. Compared to the magnitude of SSLDIP (nationwide with more than 100 LGU sub Borrowers), MWMP is more manageable in regards to the social safeguards issues. It is also noted that the technical capacities of MWSI and MWCI for safeguards operations are much higher than many LGU counterpart staff with whom the LBP has dealt with under SSLDIP. 96. The Borrower and Sub‐Borrowers have prior experience working with the Bank in previous loan projects where the environmental safeguards are required. The Borrower has implemented the Water Districts Development Project, the SSLDIP and the Manila Third Sewerage Project. As for Manila Water, they are involved in the Manila Third Sewerage Project wherein the environmental safeguards are also required. Maynilad has also worked with the Bank on MTSP‐GEF. In addition, MWSS is familiar with Bank procedures through previous operations and will provide the necessary guidance, as needed. Also, MWSS staff can provide guidance to Manila Water and Maynilad, as necessary. 97. Both Concessionaires have adequate capacity to carry out sub‐project preparation and they have each established a team to carry out the project. In addition, training will be provided to ensure familiarity with processes to be carried out under the project. Both Concessionaires have clear systems of audits and accountability in place (public disclosure of financial statements in accordance with international standards); their procurement practices are in line with international good practice and both companies regularly carry out large investments taking into consideration environmental and social issues.
98. Capacity Building and Training Requirements: LBP will hire consultants to strengthen its capacity and assist in project implementation. The Sub‐Borrowers will allocate funds for training on safeguards related matters for the project. To ensure that the procedures laid out in the ESSF are implemented properly, the following six trainings will be provided by the Bank for the staff of LBP, MWCI, MWSI and the LGUs who are responsible for the environment and social safeguards aspects:
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• Course on WB Safeguards Policies and their application per project stage
• Preparation of an ARAP and a Full RAP
• Preparation of an EMP
• How to Conduct Public Consultation
• Grievance Mechanism
• Monitoring of resettlement implementation
99. Although the Borrower has sufficient capacity to manage social safeguards requirements and to provide guidance to the Concessionaires in accordance with the provisions of the ESSF, the Bank will review all subprojects implemented in the first year and will continue review and approve all Category A and some Category B subprojects and the subprojects with significant involuntary resettlement issues to ensure that the subprojects are in full compliance with the requirements of the World Bank’s relevant safeguards policies and until it is fully satisfied that the Concessionaires have achieved sufficient capacities to the level they can function without any oversight by the Bank.
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VIII. Grievance Redress Mechanism 100. A grievance redress mechanism for the project is necessary for addressing legitimate concerns of affected individuals and groups who may consider themselves deprived of appropriate treatment under the project. MWCI and MWSI have a Public Complaints Section in their Consumer Relations Departments to address all complaints and grievances received from members of the public. The Public Complaints Sections will be responsible to address and resolve any grievances from the DPs and other members of the public in regards to the sub‐projects. Complaints and grievances related to any aspect of the sub‐projects, including environmental and social safeguards issues, will be addressed as follows:
• Step 1: As a first stage, complainants will present their complaints and grievances to the Barangay officials for onward transmission of complaints to the Concessionaires. The sub‐project staff of the Concessionaires, together with the LGU officials, will make every attempt to resolve the grievances at the local level.
• Step 2: If the complaint is not addressed to the satisfaction of the complainant, or remain unresolved, for 15 days from the date of first submission, the complainant may then submit his/her complaint directly to the Complaints Section of the Consumer Relations Departments of MWCI and MWSI
• Step 3: If the complaints are not addressed to the satisfaction of the complainant within 15 days from the date of submission to the Concessionaires, or remain unresolved, the complainant can approach the court of law.
101. Following principles will apply to address complaints and grievances in the project:
• Complainants will be exempted from all administrative and legal fees incurred in pursuant to the grievance redress procedures. All such costs will be borne by the respective Concessionaire.
• All complaints would be written, if received verbally, and documented properly. The Concessionaires will also put all relevant details of complaints and the actions taken on their respective website for the purpose;
• Designated staff with responsibility to address complaints would be appointed at
various levels;
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• Concessionaires will maintain proper documentation of all complaints received and actions taken. These documents would be available to the LBP which is responsible for monitoring.
102. The concessionaires will provide LBP with a report on any complaint received and actions taken. As the Borrower, LBP will monitor said complaints as part of its due diligence and closely coordinate with the Sub‐borrowers on possible remedial actions to resolve complaints expeditiously and adequately. LBP will keep the Bank informed about the complaints and the steps taken by the Sub‐borrowers to resolve the complaints.
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Annex 1: Initial Screening Form for Potential Environmental & Social Safeguards Issues
This form is to be used by the Sub‐Borrowers for initial screening of potential environmental and social safeguards issues. It is meant to facilitate the determination of applicable World Bank safeguards policies, as well as those relevant to Philippines legislation. The completed form will be submitted to the Borrower and World Bank task team for confirmation.
Sub‐project Name
Sub‐project Location
Sub‐project Proponent
Sub‐project Type/Sector
Estimated Investment
Start/Completion Date
Screening for Philippines environmental regulations
• A full/detailed EIA is required: Yes:__No:__ • Permit granted with conditions: Yes:__No:__ • Rejected: Yes:__No:__
Screening Checklist for World Bank Environmental and Social Safeguards
Questions Answer If Yes
WB Policy triggered
yes No
Are the sub‐project impacts likely to have significant adverse environmental impacts that are sensitive, diverse or unprecedented? Please provide brief description:
OP 4.01
Category A
Is the proposed sub‐project likely to have minimal or no adverse environmental impacts? Please provide brief justification:
OP 4.01
Category C
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Is the sub‐project neither a Category A nor Category C as defined above? Please provide brief justification:
OP 4.01
Category B
Will the sub‐project involve potential conversion or degradation of natural habitats? Please provide brief justification:
OP 4.04
(Rejected in case of significant conversion or degradation)
Does the sub‐project involve involuntary land acquisition, loss of assets or access to assets, or loss of income sources or means of livelihood? Please provide brief justification:
OP 4.12
Resettlement Action Plan
Are the sub‐project impacts likely to have significant adverse Social impacts that are sensitive, diverse or unprecedented? Please provide brief description:
OP4.01
Social Assessment
Safeguards Instruments Required:
1. _______________________________________________________________________ 2. _______________________________________________________________________ 3. _______________________________________________________________________ 4. _______________________________________________________________________ 5. _______________________________________________________________________
Initial Screening Completed by (Sub‐Borrower)
[date]
Reviewed and confirmed by (Borrower) [date]
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Annex 2: EA Requirements for Sanitation and Sewerage Projects
EA process Philippine EIA Law (PD 1586) World Bank OP 4.01 Environmental Assessment
Screening: Classification of environmental assessment
Category A: Domestic wastewater treatment facility (WWTF): equal to or greater than 5,000 cubic meters (cu.m.) per day and sewer network Category B: WWTF less than 5,000 cu.m. per day or rehabilitation of sewer network Category C: Rehabilitation of small‐scale WWTF or equipment
Category A: Projects whose environmental impacts are significant, sensitive, diverse and unprecedented Category B: Projects whose potential environmental impacts are moderate, manageable and site‐specific Category C: Projects with minimal environmental impact
Public Consultation: (documentation, participants, issues raised and how they will be addressed)
Category A: Public Hearing Category B: Public Consultation
Category A: 2 public consultations with project‐affected groups and local NGOs and public disclosure of project information: Category B: One public consultation and public disclosure of project information and draft EA Category C: Public disclosure of project info.
Conduct of EA and documentary requirements
Category A: Submission of ECC application with full blown EIA and EMP; minutes of public hearing; attendance list; public disclosure of EIA and EMP Category B: Submission of ECC application with IEE and programmatic expansion applications: Environmental Performance Report and Management Plan (EPRMP) Category C: Submission of project description (PD) and application for CNC
Categories A and B: Potential adverse environmental impacts in Project Appraisal Document (PAD), Project Identification Document (PID), Integrated Safeguards Data Sheet (ISDS) EIA/ IEE and EMP Public consultations/ hearings Category C: Project description and EMP
Review and Approval
Category A: Project scoping with stakeholders is conducted by proponent; EIS and EMP submitted to DENR to secure
EIA EMPs
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EA process Philippine EIA Law (PD 1586) World Bank OP 4.01 Environmental Assessment
ECC; independent Review committee reviews EIA; public hearing is conducted; DENR processes Category B: Proponent conducts public consultation with stakeholders; IEE and EPRMP submitted to DENR to secure ECC Category C: PD, EMP, CNC
Public Disclosure Category A: Environmental safeguards instruments (EIA, EMP, ECC) disclosed in the DENR website, public library, and available upon request at the DENR‐EIA office Category B: IEE, EMP and ECC Category C: PD, EMP, CNC
Category A: Project's objectives, description, and draft EIA presented in 2 public consultations; EIA, EMP and ECC are in Infoshop and widely available to the public Category B: Project's objectives, description, and draft EIA presented in 1 public consultation; IEE and EMP are in Infoshop and widely available to the public Category C: PD, EMP, CNC are in Infoshop and widely available to the public
Monitoring and reporting
Category A: Environmental Compliance Report (ECR) Semi‐annual self‐ monitoring reports (SMR) Multi‐partite Monitoring Team (MMT) / Annual Third party audit report Category B: EPMR and SMR
Category A: EMP monitoring report MMT / Annual third party audit report Category B: EMP monitoring report MMT / Annual third party audit report
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Annex 3: Sample Terms of Reference (TOR) for an EA for Wastewater Collection, Treatment, Reuse and Disposal Systems (Construction and Rehabilitation)
1. Introduction. State the purpose of the TORs, identify the new projects/sub‐projects or rehabilitation activities to be assessed and explain the executing arrangements for the EA. 2. Background Information. Provide pertinent background for any parties who may conduct the EA, whether they are government agencies, consultants or NGOs. Include a brief description of the major components/sub‐components of the proposed project, a statement on its need and objectives, the implementing agency, a brief history of the project (including alternatives considered), its current status and timetable, and the identities of any associated projects. Identify other projects in progress or planned within the region which may compete for the same resources. 3. Major components of the project to be described include, as appropriate: conduits for collection and conveyance of wastewater, pumping stations, conventional and innovative treatment works, wastewater reclamation and reuse projects, ocean outfalls, wastewater treatment sludge management facilities, a variety of small –scale sanitation systems for rural and urban areas, and urban storm water drainage projects. Water pollution control programs often include significant institution building and national water pollution control policy formulation components 4. Objectives. Summarize the general scope of the EA and discuss its timing in relation to other aspects of project preparation, design, and execution. Identify constraints, if any, regarding the adequacy of existing environmental baseline data and needs to phase additional data collection (e.g., seasonal rainfall, river flows) and assessment efforts to avoid hindering the rest of the project development schedule. 5. EA Requirements. Identify laws, regulations and guidelines that will govern the conduct of the assessment or specify the content of its report. They may include any or all of the following:
• National laws and/or regulations on EA; • Regional, provincial or communal EA regulations; and • EA regulations of any other financing organizations involved in the project. • World Bank Operational Policy (OP) 4.01: "Environmental Assessment," and other
pertinent environmental/social safeguard policies, e.g., resettlement (land acquisition); and the Disclosure Handbook (December, 2002)
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Note: the project may include a broad array of activities, some of which may cause direct adverse environmental and social impacts and are consequently likely to be classified as category A or B; others may cause very limited impacts and are therefore likely to be category C. These TORs focus upon types of activities likely to be classified A or B and which would therefore require an EA.
6. Identify design or operating standards which project components must meet to be in compliance with environmental safeguards, e.g.,, effluent discharge limitations, air emission standards, receiving water quality standards, and occupational health and safety requirements. 7. Study Area and Likely Major Impacts. Depending upon the study area, the assessment consists of the service area of the wastewater collection system; the tracts of land on which effluent or sludge are to be applied/recycled; marine, estuarine or inland waters which could be influenced by effluent discharge; remote sites identified for disposal of solid waste generated in the treatment process; and, if incineration is included as a sludge disposal technique, the air shed which might be affected. 8. Summarize the outcome of the scoping exercise in which a broad assessment will have been made of the major biophysical and social impacts likely to be generated by the project. 9. Scope of Work. In some cases, the tasks to be carried out by a consultant will be known with sufficient certainty to be specified in the TORs. In other cases, information deficiencies need to be identified and resolved or specialized field studies performed to assess impacts; accordingly, the consultant should define particular tasks in more detail for contracting agency review and approval.
• Task 1. Description of the Proposed Project. Provide a full description of the project: location; general layout; unit process description and diagram for rehabilitation/new components; population served, present and projected; number and types of connected industries; anticipated influent and effluent characteristics (depending upon primary, secondary or tertiary treatment); preconstruction and construction activities; schedule, staffing and support facilities and services; operation and maintenance activities; required off‐site investments; life span; adjacent communities to site; existing/new road or other supportive infrastructure.
• Task 2. Description of the Environment and Social Aspects. Assemble, evaluate and present relevant baseline data on the environmental characteristics of the study area. Include information on any changes anticipated before the project commences.
o Physical environment: geology (general description for overall study area and
details for land application sites); topography; soils (general description for overall study area and details for land application sites); monthly average
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temperatures, rainfall and runoff characteristics; description of receiving waters (identity of streams, lakes, or marine waters; annual average discharge or current data by month, water quality; existing discharges or withdrawals).
o Biological environment: terrestrial communities in areas affected by construction, facility siting, land application or disposal; aquatic, estuarine or marine communities in affected waters; rare or endangered species; sensitive habitats, including parks or reserves, significant natural habitats; species of commercial importance in land application sites and receiving waters.
o Social aspects: present and projected population; present land use/ownership; planned development activities; community structure; present and projected employment by industrial category; distribution of income, goods and services; recreation; public health; cultural properties; involuntary resettlement, indigenous peoples; and customs.
This section should indicate the accuracy, reliability and sources of the data and consequences for assessing impacts and their mitigation
• Task 3. Legislative and Regulatory Considerations. Describe the pertinent laws,
regulations and standards governing environmental quality, pollutant discharges to surface waters and land, industrial discharges to public sewers, water reclamation and reuse, agricultural and landscape use of sludge, health and safety, protection of sensitive areas and endangered species, siting, land use control, etc., at international, national, regional and local levels (The TORs should specify those that are known and require the consultant to investigate for others. If transboundary impacts are likely, relevant international conventions should be described.
• Task 4. Determination of the Potential Impacts of the Proposed Project. In this analysis, distinguish between significant positive and negative impacts, direct and indirect impacts, and immediate and long‐term impacts. Identify impacts that are unavoidable or irreversible. Wherever possible, describe impacts quantitatively, in terms of environmental costs and benefits. Assign economic values when feasible. Characterize the extent and quality of available data, explaining significant information deficiencies and any uncertainties associated with predictions of impact. Provide TORs for studies to obtain the missing information.
Special attention should be given to:
o The extent to which receiving water quality standards and/or beneficial use
objectives will be achieved with the proposed type and level of treatment.
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o The length of river/ stream or expanse of lake or marine waters that will be positively or negatively affected by the discharge, and the magnitude of the changes in water quality parameters.
o Projected quantitative changes in beneficial uses, such as fisheries (species composition, productivity), recreation and tourism (visitor‐days, overnights, expenditures), and waters available for portable supply, irrigation, and industrial use
o Sanitation and public health benefits anticipated.
• Task 5. Analysis of Alternatives to the Proposed Project. Describe alternatives that were examined in the course of developing the proposed project and identify other alternatives that would achieve the same objectives. The concept of alternatives extends to siting and design, technology selection, rehabilitation/construction techniques and phasing, and operating and maintenance procedures for collection systems, treatment works, disposal and sludge management. Compare alternatives in terms of potential environmental impacts, land and energy requirements, capital and operating costs, reliability, suitability under local conditions, and institutional, training, and monitoring requirements. When describing the impacts, indicate which are irreversible or unavoidable and which may be mitigated. To the extent possible, quantify the costs and benefits of each alternative, incorporating the estimated costs of any associated mitigating measures. Include the alternative of not constructing the project to demonstrate environmental conditions without it.
• Task 6. Development of an Environmental Management Plan (EMP). Estimate the impacts and costs of the mitigation measures and of the institutional and training requirements to implement them. Assess compensation to affected parties for impacts that cannot be mitigated. Prepare an EMP, including proposed work programs, budget estimates, schedules, staffing and training requirements, and other necessary support services to implement the mitigating measures, monitoring, etc. Consider compensation to affected parties for impacts that cannot be mitigated. Include measures for emergency response to accidental events (e.g. entry of raw sewage into rivers, streams, etc), as appropriate.
Prepare a detailed plan to monitor the implementation of mitigating measures and the impacts of the project during rehabilitation/construction and operation. Include in the plan an estimate of capital and operating costs and a description of other inputs (such as training and institutional strengthening) needed to implement the plan. For projects that include a land disposal facility, environmental monitoring should include a regular schedule of monitoring the quality of surface and ground waters.
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Depending upon local conditions and predicted impacts upon communities/individuals, there may be need for a Resettlement Policy Framework and/or RAP.
Review the authority and capability of institutions at local, provincial/regional, and national levels and recommend steps to strengthen or expand them so that the EMP may be effectively implemented. The recommendations may extend to new laws and regulations, new agencies or agency functions, intersectoral arrangements, management procedures and training, staffing, operation and maintenance training, budgeting, and financial support.
An outline of the contents of the EMP to be included in the project’s Operational Manual should be provided along with environmental/social protection clauses for contracts and specifications.
• Task 7. Assist in Inter‐Agency Coordination and Public/NGO Participation. The Consultant will assist the government in coordinating the EA with relevant agencies and the government will consult with affected groups likely to be affected by the proposed project and with local NGOs on the environmental and social aspects of the proposed project. For projects categorized A, these groups will be consulted at least twice: in meetings held during preparation before the TORs for the EA are finalized and when a draft EA is available (a summary of the EA will be available prior to the meeting). For projects categorized B, these groups should be consulted once a draft EA has been prepared and a summary of the EA conclusions will, be made prior to the meeting. For both A and B category projects the draft EA should also be available in a public place accessible to affected groups and local NGOs.
Relevant materials will be provided to affected groups in a timely manner prior to consultation and in a form and language that is understandable and accessible to the groups being consulted. The Consultant should maintain a record of the public consultation and the records should indicate: means other than consultations) e.g., surveys) used to seek the views of affected stakeholders; the date and location of the consultation meetings, a list of the attendees and their affiliation and contact address; and summary minutes
10. Report. Provide an EA report that is concise and limited to significant environmental issues. The main text should focus on findings, conclusions and recommended actions, supported by summaries of the data collected and citations for any references used in interpreting those data. Detailed or uninterrupted data are not appropriate in the main text and should be presented in appendices or a separate volume. Unpublished documents used in the assessment may not be readily available and should also be assembled in an appendix. Organize the EA report according to the outline below. (This is the format suggested in OP 4.01; the TORs
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may specify a different one to satisfy national agency requirements as long as the topics required in the Bank's directive are covered):
• Executive Summary • Policy, Legal and Administrative Framework • Description of the Proposed Project • Description of the Environment • Significant Environmental Impacts • Analysis of Alternatives • Environmental Management Plan, incl. mitigation, monitoring, capacity development
and training and implementation schedule and costs; include environmental protection clauses for incorporation in contract agreements.
• Inter‐Agency and Public/NGO Consultation • List of References • Appendices:
o List of EA Preparers;
o Records of Inter‐Agency and Public/NGO Communications;
o Data and Unpublished Reference Documents:
11. Consulting Team. The following specialties should be considered for the core consulting team: environmental engineering, environmental planning (or other environmental generalists); ecology (terrestrial, aquatic or marine, depending on type of discharge); water quality; soils science (for land application); wastewater utility management; and sociology/anthropology. Other specialties that may be needed depending on the nature of the project are public health, agronomy, hydrology, land use planning, limnology/oceanography (especially for outfall design), water quality modeling, and resource economics. Note: the team will be required to work closely with specialists undertaking the social analysis and to define arrangements for the final report, especially if the EA and social analysis are to be combined in one report
12. Schedule. This section will specify dates for progress reviews, interim and final reports, and other significant events. 13. Other Information. Include here lists of data sources, project background reports and studies, relevant publications, and other items to which the consultant's attention should be directed. Examples are pre‐feasibility studies, population and land use projections, land use plans, industrial activity information, water quality studies, sewerage service needs surveys, public health reports, sewer system evaluations.
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Annex 4: Template for an Environmental Management Plan
Template for EMP Checklist for Category B projects General Guidelines for use of EMP checklist:
1. For Category B sub‐projects such as the wastewater treatment facilities financed by MWMP, the following template serves as basis for a more streamlined approach to preparing EMPs. The checklist‐type format has been developed to provide examples of good practices and is designed to be user friendly and compatible with safeguard requirements. 2. The EMP checklist‐type format attempts to cover typical core mitigation approaches to civil works contracts with small, localized impacts. It is accepted that this format provides the key elements of an EMP or Environmental Management Framework (EMF) to meet World Bank EA requirements under OP 4.01. The intention of this checklist is that it would be applicable as guidelines for the small works contractors and constitute an integral part of bidding documents for contractors carrying out small civil works under Bank‐financed projects. 3. The checklist has four sections:
• Part 1 General Project and Site Information ‐ includes a descriptive part that characterizes the project and specifies in terms the institutional and legislative aspects, the technical project content, the potential need for capacity building program and description of the public consultation process. This section could be up to two pages long. Attachments for additional information can be supplemented when needed.
• Part 2 Safeguards Information ‐ includes an environmental and social screening checklist, where activities and potential environmental issues can be checked in a simple Yes/No format. If any given activity/issue is triggered by checking “yes”, a reference is made to the appropriate section in Part 3.
• Part 3 Mitigation Measures – the table clearly formulates management and mitigation measures.
• Part 4 Monitoring Plan ‐ represents the monitoring plan for activities during project construction and implementation. It retains the same format required for EMPs proposed under normal Bank requirements for Category B projects. It is the intent of this checklist that Part 2 and Part 3 be included into the bidding documents for contractors, priced during the bidding process and diligent implementation supervised during works execution.
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PART 1: General Project and Site Information
INSTITUTIONAL & ADMINISTRATIVE
Sub‐project title
Location
Scope of project and activity
Institutional arrangements
(Responsible LBP PMO counterpart)
(Responsible Concessionaire counterpart)
Contractor
Implementation arrangements
Safeguard Supervision Local Counterpart Supervision
Local Inspectorate Supervision
Contractor
SITE DESCRIPTION
Name of site
Describe site location Attachment 1: Site Map [ ]Y [ ] N
Who owns the land?
Description of geographic, physical, biological, geological, hydrographic and socio‐economic context
Locations and distance for material sourcing, especially aggregates, water, stones?
LEGISLATION
Identify national & local legislation & permits that apply to project activity
PUBLIC CONSULTATION
Identify when / where the public consultation process took place
INSTITUTIONAL CAPACITY BUILDING
Will there be any capacity building?
[ ] N or [ ]Y if Yes, Attachment 2 includes the capacity building program
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PART 2: safeguards information
DETERMINATION OF POTENTIAL ENVIRONMENTAL /SOCIAL ASPECTS
Will the site activities include/involve any of the following?
Activity Status Triggered Actions
Construction works [] Yes [ ] No See Section A below
Rehabilitation activities [ ] Yes [] No See Section A below
Individual wastewater treatment system [ ] Yes [] No See Section B below
Historic building(s) and districts [ ] Yes [] No See Section C below
Acquisition of land [ ] Yes [] No See Section D below
Hazardous or toxic materials [] Yes [ ] No See Section E below
Impacts on forests and/or sensitive areas [ ] Yes [] No See Section F below
Handling / management of waste [ ] Yes [] No
Traffic and Pedestrian Safety [] Yes [ ] No See Section G below
Other activities [] Yes [ ] No
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PART 3: Mitigation measures
ACTIVITY PARAMETER MITIGATION MEASURES CHECKLIST
0. General Conditions
Notification and Worker Safety
The local construction and environment inspectorates and communities have been notified of upcoming activities
The public has been notified of the works through appropriate notification in the media and/or at publicly accessible sites (including the site of the works)
All legally required permits have been acquired for construction and/or rehabilitation
The Contractor formally agrees that all work will be carried out in a safe and disciplined manner designed to minimize impacts on neighboring residents and environment.
Workers’ PPE will comply with international good practice (always hardhats, as needed masks and safety glasses, harnesses and safety boots)
Appropriate signposting of the sites will inform workers of key rules and regulations to follow.
A. General Construction Activities
Air Quality During interior demolition debris‐chutes shall be used above the first floor
Demolition debris shall be kept in controlled area and sprayed with water mist to reduce debris dust
During pneumatic drilling/wall destruction dust shall be suppressed by ongoing water spraying and/or installing dust screen enclosures at site
The surrounding environment (side walks, roads) shall be kept free of debris to minimize dust
There will be no open burning of construction / waste material at the site
There will be no excessive idling of construction vehicles at sites
Noise Construction noise will be limited to restricted times agreed to in the permit
During operations the engine covers of generators, air compressors and other powered mechanical equipment shall be closed, and equipment placed as far away from residential areas as possible
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Water Quality The site will establish appropriate erosion and sediment control measures such as e.g. hay bales and / or silt fences to prevent sediment from moving off site and causing excessive turbidity in nearby streams and rivers.
Waste management
Waste collection and disposal pathways and sites will be identified for all major waste types expected from demolition and construction activities.
Mineral construction and demolition wastes will be separated from general refuse, organic, liquid and chemical wastes by on‐site sorting and stored in appropriate containers.
Construction waste will be collected and disposed properly by licensed collectors
The records of waste disposal will be maintained as proof for proper management as designed.
Whenever feasible the contractor will reuse and recycle appropriate and viable materials (except asbestos)
B. Individual wastewater treatment system
Water Quality The approach to handling sanitary wastes and wastewater from building sites (installation or reconstruction) must be approved by the local authorities
Before being discharged into receiving waters, effluents from individual wastewater systems must be treated in order to meet the minimal quality criteria set out by national guidelines on effluent quality and wastewater treatment
Monitoring of new wastewater systems (before/after) will be carried out
Construction vehicles and machinery will be washed only in designated areas where runoff will not pollute natural surface water bodies.
C. Historic building(s)
Cultural Heritage If the building is a designated historic structure, very close to such a structure, or located in a designated historic district, notification shall be made and approvals/permits be obtained from local authorities and all construction activities planned and carried out in line with local and national legislation.
It shall be ensured that provisions are put in place so that artifacts or other possible “chance finds” encountered in excavation or construction are noted and registered, responsible officials contacted, and works activities delayed or modified to account for such finds.
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ACTIVITY PARAMETER MITIGATION MEASURES CHECKLIST
D. Acquisition of land
Land Acquisition Plan/Framework
If expropriation of land is required, or if loss of access to income sources of legal or illegal users of land was not expected but may occur, that the Bank’s Task Team shall be immediately consulted.
Appropriate sections of ESSF will apply.
E. Toxic Materials
Toxic / hazardous waste management
Temporarily storage on site of all hazardous or toxic substances will be in safe containers labeled with details of composition, properties and handling information
The containers of hazardous substances shall be placed in an leak‐proof container to prevent spillage and leaching
The wastes shall be transported by specially licensed carriers and disposed in a licensed facility.
Paints with toxic ingredients or solvents or lead‐based paints will not be used F. Affected forests, wetlands and/or sensitive areas
Protection A survey and an inventory shall be made of large trees in the vicinity of the construction activity, large trees shall be marked and cordoned off with fencing, their root system protected, and any damage to the trees avoided
Adjacent wetlands and streams shall be protected from construction site run‐off with appropriate erosion and sediment control feature to include by not limited to hay bales and silt fences
There will be no unlicensed borrow pits, quarries or waste dumps in adjacent areas, especially not in protected areas. G. Traffic and Pedestrian Safety
Direct or indirect hazards to public traffic and pedestrians by construction activities
In compliance with national regulations the contractor will insure that the construction site is properly secured and construction related traffic regulated. This includes but is not limited to
(a) Signposting, warning signs, barriers and traffic diversions: site will be clearly visible and the public warned of all potential hazards (b) Traffic management system and staff training, especially for site access and near‐site heavy traffic. Provision of safe passages and crossings for pedestrians where construction traffic interferes. (c) Adjustment of working hours to local traffic patterns, e.g. avoiding major transport activities during rush hours or times of livestock movement (d) Active traffic management by trained and visible staff at the site, if required for safe and convenient passage for the public. (e) Ensuring safe and continuous access to office facilities, shops and residences during renovation activities, if the buildings stay open for the public.
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PART 4: Monitoring Plan
Phase
What
(Is the parameter to be monitored?)
Where
(Is the parameter to be monitored?)
How
(Is the parameter to be monitored?)
When
(Define the frequency / or continuous?)
Why
(Is the parameter being monitored?)
Cost
(if not included in project budget)
Who
(Is responsible for monitoring?)
During activity preparation
During activity implementation
During activity supervision
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Annex 5: Cultural Property and Protection Measures WB Policy on Management of Cultural Property (OP 4.11, July 2006)
Cultural resources are important as sources of valuable historical and scientific information, as assets for economic and social development, and as integral parts of a people's cultural identity and practices. The loss of such resources is irreversible, but fortunately, it is often avoidable
The objective of OP/BP 4.11 on Physical Cultural Resources is to avoid, or mitigate, adverse impacts on cultural resources from development projects that the World Bank finances.
Protection of Cultural Property
1. Cultural property include monuments, structures, works of art, or sites of significance points of view, and are defined as sites and structures having archaeological, historical, architectural, or religious significance, and natural sites with cultural values. This includes cemeteries, graveyards and graves. Following procedures for identification, protection from theft, and treatment of discovered artifacts should be followed and included in standard bidding documents. Chance Find Procedures
2. Chance find procedures will be used as follows: • Stop the construction activities in the area of the chance find; • Delineate the discovered site or area; • Secure the site to prevent any damage or loss of removable objects. In cases of removable
antiquities or sensitive remains, a night guard shall be present until the responsible local authorities and the National Museum take over;
• Notify the supervisory Engineer who in turn will notify the responsible local authorities and the National Museum immediately (within 24 hours or less);
• Responsible local authorities and the National Museum would be in charge of protecting and preserving the site before deciding on subsequent appropriate procedures. This would require a preliminary evaluation of the findings to be performed by the archeologists of the National Museum (within 72 hours). The significance and importance of the findings should be assessed according to the various criteria relevant to cultural heritage; those include the aesthetic, historic, scientific or research, social and economic values;
• Decisions on how to handle the finding shall be taken by the responsible authorities and the National Museum. This could include changes in the layout (such as when finding an irremovable remain of cultural or archeological importance) conservation, preservation, restoration and salvage;
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• Implementation for the authority decision concerning the management of the finding shall be communicated in writing by the National Museum; and
• Construction work could resume only after permission is given from the responsible local authorities and the National Museum concerning safeguard of the heritage.
3. These procedures must be referred to as standard provisions in construction contracts, when applicable. During project supervision, the Site Engineer shall monitor the above regulations relating to the treatment of any chance find encountered are observed. 4. Relevant findings will be recorded in World Bank Implementation Supervision Reports (ISRs), and Implementation Completion Reports (ICRs) will assess the overall effectiveness of the project’s cultural property mitigation, management, and activities, as appropriate.
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Annex 6: Safeguards Procedures for Inclusion in the Technical Specifications for Contracts A. General 1. The Contractor and his employees shall adhere to the mitigation measures set down and take all other measures required by the Engineer to prevent harm, and to minimize the impact of his operations on the environment. 2. The Contractor shall not be permitted to unnecessarily strip clear the Right of Way (ROW). Where roads need to be dug to lay sewer networks or to conduct other constructions, the Contractor shall only clear the minimum width for construction and diversion roads should not be constructed alongside the existing road. In case this is unavoidable, such diversion roads should not create obstructions or disruptions of roadways, passageways, and drainage channels. Provisions to maintain smooth pedestrian and vehicle traffic and drainage flow should be in place to allow at all times accessibility to homes and businesses and avoid water ponding. 3. Remedial actions which cannot be effectively carried out during construction should be carried out on completion of each Section of the road (earthworks, pavement and drainage):
• these sections should be landscaped and any necessary remedial works should be undertaken without delay, including grassing and reforestation; and
• water courses should be cleared of debris and drains and culverts checked for clear flow paths;
4. The Contractor shall limit construction works as agreed with the LGU and as approved by the Homeowners’ Association if it is to be carried out in or near residential areas. 5. The Contractor shall avoid the use of heavy or noisy equipment in specified areas at night, or in sensitive areas such as near a hospital. 6. To prevent dust pollution during dry periods, the Contractor shall carry out regular watering of earth and gravel haul roads and shall cover material haulage trucks with tarpaulins to prevent spillage. B. Transport 7. The Contractor shall use selected routes to the project site, as agreed with the Engineer, and appropriately sized vehicles suitable to the class of road, and shall restrict loads to prevent damage to roads and bridges used for transportation purposes. The Contractor shall be held responsible for any damage caused to the roads and bridges due to the transportation of excessive loads, and shall be required to repair such damage to the approval of the Engineer.
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8. The Contractor shall not use any vehicles, either on or off road with grossly excessive, exhaust or noise emissions. In any built up areas, noise mufflers shall be installed and maintained in good condition on all motorized equipment under the control of the Contractor. 9. Adequate traffic control measures shall be maintained by the Contractor throughout the duration of the Contract and such measures shall be subject to prior approval of the Engineer. C. Workforce 10. The Contractor should whenever possible locally recruit the majority of the workforce and shall provide appropriate training as necessary. 11. The Contractor shall install and maintain a temporary septic tank system for any residential labor camp and without causing pollution of nearby watercourses. 12. The Contractor shall establish a method and system for storing and disposing of all solid wastes generated by the labor camp and/or base camp. 13. The Contractor shall not allow the use of fuelwood for cooking or heating in any labor camp or base camp and provide alternate facilities using other fuels. 14. The Contractor shall ensure that site offices, depots, and workshops are located in appropriate areas as approved by the Engineer and not within 500 meters of existing residential settlements and not within 1,000 meters for asphalt plants. 15. The Contractor shall ensure that site offices, depots and particularly storage areas for fuel are not located within 500 meters of watercourses, and are operated so that no pollutants enter watercourses, either overland or through groundwater seepage, especially during periods of rain. The contractor shall ensure that any facility or equipment shall not discharge any waste such as (such as domestic, solid or liquid waste, equipment or vehicle washings, construction debris) or pollute these watercourses with industrial leakages during the preparation or storage of building materials. 16. The contractor shall not use fuel wood as a means of heating during the processing or preparation of any materials forming part of the Works.
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D. Earthworks
17. Earthworks shall be properly controlled, especially during the rainy season. 18. The Contractor shall maintain stable cut and fill slopes at all times and cause the least possible disturbance to areas outside the prescribed limits of the work. 19. The Contractor shall complete cut and fill operations to final cross‐sections at any one location as soon as possible and preferably in one continuous operation to avoid partially completed earthworks, especially during the rainy season. 20. In order to protect any cut or fill slopes from erosion, in accordance with the drawings, cut off drains and toe‐drains shall be provided at the top and bottom of slopes and be planted with grass or other plant cover. Cut off drains should be provided above high cuts to minimize water runoff and slope erosion. 21. Any excavated cut or unsuitable material shall be disposed of in designated tipping areas as agreed to by the Engineer. 22. Tips should not be located where they can cause future slides, interfere with agricultural land or any other properties, or cause soil from the dump to be washed into any watercourse. Drains may need to be dug within and around the tips, as directed by the Engineer. E. Historical and Archeological Sites
23. If the Contractor discovers archeological sites, historical sites, remains and objects, including graveyards and/or individual graves during excavation or construction, the Contractor shall:
• Stop the construction activities in the area of the chance find. • Delineate the discovered site or area. • Secure the site to prevent any damage or loss of removable objects. In cases of removable
antiquities or sensitive remains, a night guard shall be present until the responsible local authorities and the National Museum take over.
• Notify the supervisory Engineer who in turn will notify the responsible local authorities and the National Museum immediately (less than 24 hours).
• Contact the responsible local authorities and the National Museum who would be in charge of protecting and preserving the site before deciding on the proper procedures to be carried out. This would require a preliminary evaluation of the findings to be performed by the archeologists of the National Museum (within 72 hours). The significance and importance of the findings should be assessed according to the various criteria relevant to cultural heritage, including the aesthetic, historic, scientific or research, social and economic values.
• Ensure that decisions on how to handle the finding be taken by the responsible authorities and the National Museum. This could include changes in the layout (such as when the finding is an
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irremovable remain of cultural or archeological importance) conservation, preservation, restoration and salvage.
• Implementation for the authority decision concerning the management of the finding shall be communicated in writing by the National Museum; and
• Construction work will resume only after authorization is given by the responsible local authorities and the National Museum concerning the safeguard of the heritage.
F. Disposal of Construction and Vehicle Waste
24. Debris generated due to the dismantling of the existing structures shall be suitably reused, to the extent feasible, in the proposed construction (e.g. as fill materials for embankments). The disposal of remaining debris shall be carried out only at sites identified and approved by the project engineer. The contractor should ensure that these sites (a) are not located within designated forest areas; (b) do not impact natural drainage courses; and (c) do not impact endangered/rare flora. Under no circumstances shall the contractor dispose of any material in environmentally sensitive areas. 25. In the event any debris or silt from the sites is deposited on adjacent land, the Contractor shall immediately remove such, debris or silt and restore the affected area to its original state to the satisfaction of the Supervisor/Engineer. 26. Bentonite slurry or similar debris generated from pile driving or other construction activities shall be disposed of to avoid overflow into the surface water bodies or form mud puddles in the area. 27. All arrangements for transportation during construction including provision, maintenance, dismantling and clearing debris, where necessary, will be considered incidental to the work and should be planned and implemented by the contractor as approved and directed by the Engineer. 28. Vehicle/machinery and equipment operations, maintenance and refueling shall be carried out to avoid spillage of fuels and lubricants and ground contamination. An 'oil interceptor" will be provided for wash down and refueling areas. Fuel storage shall be located in proper bunded areas. 29. All spills and collected petroleum products shall be disposed of in accordance with standard environmental procedures/guidelines. Fuel storage and refilling areas shall be located at least 300m from all cross drainage structures and important water bodies or as directed by the Engineer.
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Annex 7: Summary of Public Consultation Meeting Proceedings on the MWMP IESSMF October 5, 2010, Air Quality Training Room, EMB ‐ DENR Attendance by LGUs: Attendance by Agencies: Attendance by Partners: Bacoor, Cavite DENR‐ EMB LBP Cavite City EMB‐ National Capital Region Manila Water Valenzuela EMB‐ Region IV‐A Maynilad Muntinlupa Pasig River Rehabilitation Commission Mandaluyong City Dept. of Interior and Local Government Manila National Housing Authority Paranaque MWSS Quezon City MTSP‐GEF PMO Proceedings:
1. The public consultation opened with the introduction of the participants from the different LGUs and government agencies invited to attend. This was followed by the Welcome Remarks and Project Overview delivered by Land Bank. It was mentioned that LBP is the intermediary bank for the project, and that environment‐related projects are one of the priority sectors of LBP.
It was emphasized that the project is in accordance to the December 2008 ruling of the Supreme Court to clean‐up and rehabilitate Manila Bay. As the project proponent, Land Bank will oversee the management of the environmental and social impacts of MWMP, and that this consultation is consistent with the project’s Environment and Social Safeguards Management Framework on public disclosure and transparency.
2. MWCI Environmental Planning Division presented the strategy and subprojects of MWCI which consists of putting in place a combined sewer‐drainage system to convey the wastewater to be treated in the STPs prior to their discharge to the water bodies. MWCI mentioned that by 2018, the catchment areas for the 3 river systems in Metro Manila will be covered by a sewerage system; and by 2037, 100% of the east zone will be covered.
MWCI requested the national government and the LGUs their assistance in land acquisition, clearing of areas with informal settlers, solid waste management, ensure the coordinated implementation of sanitation and sewerage policies and continue advocating for the implementation of these policies.
3. MWSI, presented the MWSI Sewerage Program, wherein their main drivers are the Clean Water Act, and the Supreme Court Decision on the Manila bay Clean‐up. Their sewerage target is 31% by 2016; 66% by 2021; and 100% by 2037, with a total cost of $78.8 billion. MWSI strategy is combined sewer‐drainage network.
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4. The WB Environmental Framework and an example of an MWSI Environmental Management
Plan (EMP) was presented.
5. MWCI presented the Social Safeguards Framework, the objectives of which include: (i) Avoid land acquisition that would result in displacement of illegal settler; and (ii)Assist displaced persons to improve or at least restore their living conditions to pre‐project level. He presented the Safeguards Legal Framework, the applicable World Bank policies, a full Resettlement Action Plan (RAP), and an ARAP.
6. OPEN FORUM Q: EMB‐NCR Who will be responsible for de‐clogging the drainage system to ensure that the combined run‐off flow freely to the interceptor canals? A: MWSI It is the responsibility of the LGU to implement a solid waste management plan as stipulated in RA 9003 which includes keeping the drainage canals free from solid wastes. The Concessionaires will coordinate with the LGUs to make sure that the drainage systems are regularly de‐clogged the LGU to ensure that the combined sewer‐drainage system will function properly. Connections to the STPs will be managed by the Concessionaires.
Q: National Housing Authority (NHA) – The acquisition of the right of way is usually the least priority of projects. Who will shoulder the resettlement cost and which national government agency will give the cue for the resettlement informal settlers? Will the project cover the social costs both for formal and informal settlers? NHA recommended that resettlement program of LGU must be standardized to avoid delays. A: MWSI The project is part of the business plan approved by MWSS and the cost of the resettlement will be covered by the loan.
A: Representative, MWCI In the case of Manila Water, a pilot project on a resettlement master plan with Quezon City is underway with the support of HUDCC and NHA. Using this pilot arrangement as a guide in moving forward, Mr. Muana disclosed that future partnerships will heavily involve the LGUs.
As for the fund to cover the resettlement costs, Mr. Muana explained that the Concessionaires have set aside budget in their business plan to cover for these costs. However, this budget needs to be augmented by the NHA and the LGUs to cover for the development of the relocation sites. MWCI noted that the development of a standardized resettlement program can be spearheaded by NHA.
Q: MWSS
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MWSS wrote the World Bank in April asking why MWSS is not part of the project. MWSS wants to play an active role in the project as the asset owner of the facilities. A: MWSI This project will be funded by a loan that will be taken out by the Concessionaire as part of its private borrowings through Land Bank which puts up the sovereign guarantee. A: World Bank MWSS approves the business plans of the Concessionaires which these projects emanate from. MWSS being part of the NEDA ICC Board which reviews the funding requests for foreign‐assisted projects has approved the project. The Aide Memoire of the mission held in April 2010 outlined the involvement of MWSS in the project. Q: NHA Securing the right of way is always a tedious process which usually leads to the delay of the project. Will the loan earn commitment fees if there is a delay in project implementation? Proceeds. A: LBP This project will not be charged with any commitment fee. Since there still has been no disbursement made under the project, the project has not yet been charged with any interest. A: MWCI Quezon City is doing a programmatic approach in addressing the right of way issues and we would like to seek the cooperation of the LGUs to follow the approach similar to what Quezon City is doing which includes cost sharing in securing the right of way. Q:EMB Does this project cover only wastewater coming from households? A: MWCI Yes. While EMB has pre‐treatment standards for industrial waste, it is difficult for the Concessionaires to accept wastewater from industries as this will upset the operations of the STPs. EMB will have to regulate the industries to make sure that they treat their own wastes. Q: EMB Will the project include rehabilitation of tributaries? A: Mark‐ No. DENR has a program that includes rehabilitating the tributaries of Pasig River. Q:LGU Paranaque City Maynilad should get good contractors. Construction debris are left uncollected on the road after the work is complete. A: MWSI ‐ It is the responsibility of the contractors to observe good housekeeping. We are now training inspectors to make sure that the contractors complete their work thoroughly and we also ask the help of the LGUs to monitor their work.
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Q: Valenzuela City‐ Can timing of the project be synchronized with the LGUs, particularly on its road concreting and pipe laying to avoid traffic congestion and increased cost due to additional repairs? A: MWCI Yes, we will inform the LGUs in advance the schedule of our projects since we also secure from them the relevant permits before starting construction. Q: Will the project also connect houses without septic tanks to the STPs? A:MWCI No. The project will only treat septage that flow into the combined sewer systems. A dedicated sewer costs 3 to 5 times more than a combined sewer. As a compromise, only households will septic tanks will be allowed to connect to the sewer system. The quality of construction of the septic tanks should be the look out of the LGUs and they should ensure that they are designed and constructed according to the National Building Code. A: MWSI The project will only construct interceptor pipes, not separate sewers to convey untreated sewage. Q: Muntinlupa City‐ When will the Septage Management Program start? A: MWSI It is an ongoing activity. Right now, we are constructing one SpTP to treat the septage in Paranaque. Q: Quezon City Environmental Officer‐ Can you give us a list of your subprojects so we can plan ahead? The LGU CENRO should also be informed not only the Mayor’s office. A: MWCI Yes, we will copy furnish all the CENRO’s office. A: MWSI The LGU CENRO are be informed for they will be part of the Third Party Audit which is required in this project. A:WB Like the Manila Third Sewerage Project (MTSP), we would like to seek the cooperation of the LGUs to provide the Concessionaires a list of potential sites for the sub‐projects. The project would like to seek larger areas (1,000 sq.m.) as sites for the facilities. To date, DENR has entered into a MOA with ten LGUs in Metro Manila to signify their commitment in supporting the national government’s ongoing work on Sanitation and Sewerage and several of the LGUs have completed their Sanitation Action Plans. Q: City of Manila
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Will MWCI provide us a listing of establishments not connected to the sewer? We want a copy of the listing so that we will not issue them business permits. We will planning to pass an ordinance requiring all business establishments to be connected to the sewer systems in line with our policy to contribute in keeping Manila Bay a cleaner bay. A: MWCI Yes, we will give to interested LGUs a list of commercial and industrial establishments connected to our sewers. A: MWSI For MWSI, there are only 47,000 accounts in Manila connected to our sewers. We can still accommodate 40,000 more to our existing sewers. We are now constructing more sewers in the Paco area and connecting more clients. Q: DENR‐ Will there be additional cost to households as a result of this project? A: MWSI The cost for the new facilities is already incorporated in the Business Plan approved by MWSS. This is part of the single tariff currently charged to the households.
7. The Public Consultation ended with a Closing Remarks from the World Bank.
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Annex 8: Terms of Reference (TOR) Third Party Environmental Audit for MWMP
A. Background
1. This Terms of Reference covers the environmental audit for MWMP. This TOR is based on the third party audit guidelines provided by the EMB/DENR.
B. Objective of hiring Third Party Environmental Auditor (EA)
2. The overall objective of this Third Party Audit is to prepare an independent audit report that will monitor and evaluate the environmental compliance of MWMP consistent the project’s Environmental Compliance Certificate issued by DENR. 3. A Third Party Environmental Auditor (EA) should be duly certified by the Bureau of Product Standards Accreditation Scheme and other accreditation schemes duly recognized by EMB/DENR. C. Scope of Work
4. The audit shall be done in accordance with the DENR guidelines on third party audits. 5. The Consultant/Third Party EA is expected to provide the following:
• Audit plan consistent with the agreement between EMB/DENR and MWC. a. Audit objectives and overall scope
b. Audit schedule for off‐site, on‐site, and reporting activities.
c. Audit criteria and other reference documents
d. Pre‐audit activities
e. On‐site audit
• audit scope
• dates and sites of audits
• expected time and duration of on‐site activities
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• roles and responsibilities of the audit team members and accompanying person. Accompanying persons are process experts/resource persons. Only one accompanying person shall be allowed per facility
• name(s) of auditees
• working and reporting language
• prescribed on‐site activities: opening meeting, facility walk‐through, closing meeting
• prescribed evidence collection methods: observation, interviews, review of documents
• Audit report should include the following: a. List of people, including title, formally interviewed during the audit
b. List of auditors and accompanying persons
c. List of documents reviewed during and before the audit
d. List of areas observed
e. Indication of any documents not reviewed and justification for not reviewing such
f. Indication of any areas/facilities not visited and justification for not visiting those areas/facilities
g. Assessment findings
• Any non‐conformances found classified into major and minor
• Areas of conformance and list of audit evidence
• Areas of potential non‐conformance and list of audit evidence
h. Follow up activities
• Recommended areas to be audited during the next third party environmental audit.
• Recommended scope and schedule of the next third party environmental audit.
6. An audit checklist to be used by the shall be identified in evaluating the components of MWMP and shall be the basis of EMB/DENR in the evaluation of the audit report submitted. The Third Party Environmental Audit Checklist Guide in Annex A is from the given third party audit guidelines of EMB/DENR.
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D. Submission of Report
7. The Third Party Environmental Auditors shall prepare and submit an annual environmental audit. The time period for the audit shall not exceed six (6) months.
Third Party Environmental Audit Checklist Guide
Planning/Regulatory requirement Legal basis/Audit criteria
Remarks
ECC Environmental Compliance Certificate Environmental Sanitation Clearance
PD 1586 ECC conditions
Environmental Permits LLDA Clearance RA 4850 PCO Appointment DENR DAO 1992‐26 Permit to Operate Gensets DENR MC 2009‐03 Hazwaste ID RA 6969 Discharge permit RA 9275
Permit conditions
Self Monitoring Reports Outcome Indicators6
• Increase in satisfaction in areas covered • BOD removed by STPs & SpTPs (cumulative
tones/yr) • Percent increase of desludging services • Number of STPs complying with the
discharge standards) • Cost of operation in an acceptable range
(PhP/tones)
KPI‐BEM
Sewage Management • Number of water connections with sewage
treatment service • Volume of sewage treated • Length of drainage lines
installed/rehabilitated
KPI‐BEM / Environmental Performance
Septage Management • Number of septic tanks desludged • Volume of septage treated • Percentage of BOD reduction
KPI‐BEM / Environmental Performance
Institutional Strengthening KPI‐BEM
6 List of outcome indicators is part of the key performance indicators for MWSS
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• Number of people reached by public information campaign
• Percent increase in take‐up rate of desludging services
Annex 9: Environmental requirements of sub‐projects, Supervision and Institutional responsibilities
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Environmental permitting
requirements
Government agencies Concessionaires LBP DENR/LLDA LGU
1. EA Prepare EA Approve environment screening and review EA
Review and approve – DENR
Endorsement
2. Permits needed: a. Permit to Operate Gensets
Apply w/ DENR or LLDA
Recordkeeping
Review/ approval –
n/a
b. Discharge permit Apply w/ DENR or LLDA Recordkeeping Review/ approval
n/a
c. Waste/sludge disposal
Apply w/ DENR, DA and DOH
Recordkeeping Review/ approval
n/a
d. Construction/building permit
Apply w/ LGUs Recordkeeping n/a Review/ approval
3. Supervision a. Construction
Supervise contractor’s EMP implementation; submit progress report and EMP monitoring report and Envtl. Compliance Report to LBP and DENR
Monitor construction progress and compliance to safeguards; submit EMR to WB
Monitor compliance
Monitor compliance
b. STP operation Conduct monitoring Review EMRs Respond to citizen complaints if any
Respond to citizen complaints if any
c. Monitoring Prepare EMR & submit to LBP and DENR
Review EMR and monitor operations; submit EMR to WB
Visitation powers, prerogative to monitor operations
Visitation powers, prerogative to monitor operations
d. Audit Commission 3rd party audit and submit audit report to LBP, WB & DENR
Review audit report
Visitation powers
Visitation powers
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Annex 10: Resettlement Policy Framework
A. Introduction
1. Background
1. In order to meet the objectives of increasing the coverage and effectiveness of wastewater collection and treatment as well as septage management in Metro Manila and its suburbs, the Government of the Philippines is preparing the Manila Wastewater Management Project (MWMP) through the Land Bank of the Philippines (LBP), which will act as the financial intermediary (FI) and Borrower for the project, and through the two Concessionaires: MWCI and MWSI, which will be the Sub‐Borrowers. Specific development objective of the MWMP is to improve wastewater services in selected sub‐catchments of Metro Manila and surrounding areas. This will be achieved by supporting Manila Water and Maynilad to increase their coverage of wastewater collection and treatment and septage management which will contribute towards improving the environment in Metro Manila. 2. The overall environment and social benefits to be generated by the project will contribute to an improvement in the general state of the environment in Laguna Lake–Pasig River–Manila Bay ‐ watershed, leading to better health and well‐being due to improved living conditions for the people. This promises a better quality of life and economic competitiveness for Metro Manila and its suburbs. Additional project details are available in the Project Appraisal Document.
2. Project Description
3. The project is expected to finance investments by Manila Water and Maynilad in wastewater collection and treatment, and septage management in Metro Manila. Investments under the component will help the Concessionaire meet their service obligation targets under the Concession Agreement. Eligible investments will include wastewater collection and treatment and septage management. Consulting assignments related to project implementation are also eligible. These would include: preparation of feasibility studies, construction supervision, preparation of environmental and social safeguard reports, preparation of project summary reports and audit reports, and public awareness campaigns to inform the citizens about the project and the benefits of better water and wastewater services. The Concessionaires will pay for any land acquisition and resettlement costs which will not be financed with Bank funds.
4. Component 1: Investments in Wastewater Services by Manila Water ($193.4 million) – This component supports technical assistance and investments by the Concessionaire in wastewater collection and treatment, and septage management in the east Concession zone of Metro Manila. Only one investment has been foreseen for Manila Water which is the North and South Pasig Sewerage System. It will include the construction of a wastewater treatment plant (capacity of 165,000 m3/day)
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and associated sewerage lines. The pre‐qualification process to select a contractor that will construct the treatment plant on a Design Build basis is underway. Separate contracts for installation of sewers will also be prepared and for which preparation for designs is underway. 5. Component 2: Investments in Wastewater Services by Maynilad ($220.7 million) – This component supports technical assistance and investments by the Concessionaire in wastewater collection and treatment, and septage management in west Concession zone Metro Manila. Six potential investments have been pre‐identified that could meet sub‐project eligibility criteria for Bank financing. The identified investments are: (a) Rehabilitation of the existing Ayala‐Alabang Sewerage Treatment Plant (STP) that has an existing capacity to treat 7,500 m3 wastewater per day; (b) South Septage Treatment Plant that is expected to treat about 250 m3/day of septage collected from septic tanks; (c) Construction of the Talayan STP in the San Juan river basin with a capacity of 15,500 m3/day; (d) Construction of the Valenzuela STP with a capacity of 60,000 m3/day; (e) Construction of the Pasay STP with a capacity of 46,000 m3/day; and (f) Construction of the Muntinlupa STP with a capacity of 66,000 m3/day. Four of the subprojects, namely Talayan, Valenzuela, Pasay and Muntinlupa also have associated sewer networks.
B. Scope of Land Acquisition and Resettlement
1. Scope of Resettlement
6. For component 1 of the project, necessary social safeguard instruments have already been prepared for the treatment plant. However, the designs and location for the sewer systems have not yet been completed. Permanent impacts due to sewer network and laying of wastewater mains are expected to be limited as it is expected that new sewer lines would be laid within the Right of Way (ROW) and mostly in the middle of the existing roads. These works would however, cause temporary impacts on roadside commercial establishment and residential buildings in terms of temporary restriction of access. 7. Land will be required for the physical components of the project (Sewerage Treatment Plant, wastewater treatment plants, interceptor boxes, pump stations, etc.). For STPs, depending upon the capacity, the land requirement may vary (expected to be between 1‐3 hectares). For pump stations and interceptor boxes, the land requirement will be much smaller. During identification of potential sites, both the Concessionaires will as much as possible avoid land parcels with multiple owners and encumbrances. Permanent impacts due to sewer network and laying of wastewater mains are expected to be limited as it is expected that new sewer lines would be laid within the Right of Way (ROW) and mostly in the middle of the existing roads. These works would however, cause temporary impacts on roadside commercial establishment and residential buildings in terms of restriction of access. Where waste water mains and sewer lines traverse private properties/housing association areas, easement rights for laying of such pipelines, and their periodic repairs/maintenance, would be obtained in consultation with respective owners and associations. Therefore, no land acquisition for such areas
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would be necessary. However, in case of any need for land acquisition, the provisions of this RPF will apply. 8. Preliminary investigations carried out by the Concessionaires suggest that the subprojects will create social impacts both during construction and operational phases of the project. The scope of the impacts will vary from sub‐project to sub‐project. Land acquisition and involuntary resettlement are anticipated under the project, particularly for sub‐projects involving service expansion or reconstruction at new sites. This will trigger World Bank’s policy on Involuntary Resettlement (OP 4.12). Sub‐projects will be screened for land‐related impacts and Resettlement Action Plans (RAPs) or Abbreviated Resettlement Action Plans (ARAPs), if needed will be developed and implemented as explained in the subsequent sections of this framework. This Resettlement Policy Framework (RPF) will guide the project to adequately address and mitigate adverse social impacts that will be potentially generated by the project.
2. Objectives of RPF
9. The RPF establishes the objectives, procedures, institutional framework, and implementation arrangements for identifying, managing and monitoring potential environmental and social impacts of the project activities. The RPF will address mechanisms for public consultation and disclosure of project documents as well as redress of possible grievances. The scope and key objectives of the RPF include:
• To establish clear procedures and methodologies for social screening, review, approval and implementation of sub‐projects to be financed under the Project;
• To specify appropriate roles and responsibilities, and outline the necessary reporting procedures, for managing and monitoring environmental and social concerns related to sub‐projects;
C. Legal Framework 10. The RPF is responsive to the relevant national and local laws and regulations and the World Bank Safeguards Policies. The safeguards requirements for the project will build upon national guidelines and requirements in order to streamline, the documents required for each sub‐project without compromising in any manner the safeguard requirements of either the government or the World Bank.
1. Philippines Local laws and Regulations
11. In terms of national legislations in the Philippines, the key legal and administrative policies relevant to involuntary resettlement are:
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• The Bills of Rights of the Constitution of the Republic of the Philippines states: In Article III, Section 1, “No person shall be deprived of life, liberty, or property without due process of law, nor shall any person be denied the equal protection of the laws.” In Article III, Section 9, “Private property shall not be taken for public use without just compensation.”
• Executive Order 1035 (1985) requires conducting of Feasibility Studies, Public Information campaign, Parcellary survey and assets inventory. It also provides for compensation for acquired land at fair market value based on negotiations between owner and appraiser; relocation assistance to tenants, farmers and other occupants; financial assistance to farmers and agricultural tenants equivalent to the average harvest for the last three years but not less than P 15,000/ha; Disturbance compensation to agricultural lessees equivalent to 5 times the average gross harvest during the last 5 years; and compensation for improvement on land acquired under Commonwealth Act (CA) 141.
• CA 141, Public Land Act (1936) institutes classification and means of administration,
expropriation and disposition of alienable lands of the public domain.
• Supreme Court Ruling (1987) defines just compensation as fair and full equivalent to the loss sustained to enable affected household to replace affected assets at current market prices.
• Republic Act 6389 provides for disturbance compensation to agricultural leases equivalent to 4
times the average gross harvest in the last 5 years.
• Republic Act 8974 (2000) which facilitates the acquisition of ROW, site or location for National Government Infrastructure Projects and for other Purposes. Implementing Rules and Regulations of RA8974 was also issued. This mandates the use of replacement value of land and structures (without depreciation).
• Republic Act 7279 (1992) "Urban Development and Housing Act" mandates the provision of a
resettlement site, basic services and safeguards for the homeless and underprivileged citizens.
• Republic Act 7160 (1991) "Local Government Code" which allows the LGUs to exercise the power of eminent domain for public use.
2. World Bank Policy
12. In addition to the prior national requirements, World Bank’s Policy on Involuntary Resettlement (OP 4.12) is applicable. The objectives and main principles of the Policy can be summarized as follows:
• Involuntary resettlement should be avoided where feasible, or minimized, exploring all viable
alternative project designs.
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• Where it is not feasible to avoid resettlement, resettlement activities should be conceived and executed as sustainable development programs, providing sufficient investment resources to enable the persons displaced by the project to share in project benefits.
• Displaced Persons should be meaningfully consulted and should have opportunities to
participate in planning and implementing resettlement programs.
• Displaced Persons should be assisted in their efforts to improve their livelihoods and standards of living or at least to restore them, in real terms, to pre‐displacement levels or to levels prevailing prior to the beginning of project implementation, whichever is higher.
3. Key gaps in Local Laws and OP 4.12
13. The key gaps between the local laws and regulations and provisions of the World Bank’s Policy on Involuntary Resettlement (OP 4.12) include:
• Philippine Constitution, Article XIII, Section 10: Urban or rural poor dwellers shall not be evicted nor their dwellings demolished, except in accordance with the law and in a just humane manner. Focus is given on urban poor as per UDHA. Limited assistance or protection is given to the rural poor unless they are tenured agricultural tenants.
• R.A. No. 8974, Sections 8, 9, 10 and 13 provides compensation of affected properties based on fair market value. However, land donation is the first approach to the acquisition of private land.
• Notwithstanding the ruling by the Supreme Court, none of the laws and regulations clearly
provide for compensation at replacement cost.
• Income restoration/ rehabilitation assistance is available only for resettled beneficiaries of the government’s socialized housing.
• There is no policy for displaced vendors and employees of micro/small enterprises that have to
shut down their business / to be relocated.
14. This Resettlement Policy Framework (RPF) is prepared to address the gaps between the provisions of the World Bank’s Policy on Involuntary Resettlement (OP 4.12) and local laws and regulations. The RPF includes specific provisions to ensure that compensation for affected lands and other assets is provided at replacement value to all the Displaced Persons (DPs) including those who may lose access to livelihood due to the project. In the unlikely event of physical displacement of 200 or more households due to the subproject, the government and non‐government agencies will work closely and coordinate their efforts for livelihood restoration and rehabilitation assistance in accordance with the provisions of the RPF, and in compliance with the provisions of the World Bank’s OP 4.12. The
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RPF is consistent with the provisions of the World Bank’s OP 4.12 and national laws and regulations in the Philippines. D. Compensation Policy
1. Scope and Objectives for Resettlement
15. This RPF will apply to all investments related to wastewater collection and treatment undertaken by MWCI and MWSI without Bank or with Bank financing, within the same sub‐catchment area. However, this RPF will not apply to investments carried out by the two Concessionaires outside the sub‐catchment area of the Bank financed sub‐projects as there will be no flow‐through of wastewater from one sub‐catchment area to another. For this project, the RPF will be applicable for the construction/ rehabilitation of the sewage/septage treatment facilities, main sewer trunk lines, pumping stations, sewer manholes, interceptor canals and sludge management.
2. Displaced Person (DP)
16. Displaced Persons (DP) are those who as of the cut‐off date (e.g start date of census surveys), are affected in a subproject by:
(i) the involuntary taking of land resulting in:
(a) relocation or loss of shelter; (b) loss of assets or access to assets; (c) loss of income sources or means of livelihood, whether or not the affected persons must move to another location; or
ii) the involuntary restriction of access to legally designated parks and protected areas resulting in adverse impacts on the livelihoods of the displaced persons
3. Principles of Resettlement
17. Key principles and entitlements of the Resettlement Policy Framework (RPF) include:
• Involuntary taking of land resulting in i) relocation or loss of shelter; ii) lost of assets or access to assets; or iii) loss of income sources or means of livelihood, whether or not the affected persons must move to another location.
• The framework also provides for process and procedures where land is obtained through direct negotiations under open market purchase system on a voluntary basis with the land owner, as is the current practice by Sub‐Borrowers.
18. Key elements of RPF include: • A brief description of the project and components for which land acquisition and resettlement
are required • An explanation of why a resettlement plan or an abbreviated plan cannot be prepared by
project appraisal;
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• Principles and objectives governing resettlement preparation and implementation; • A description of the process for preparing and approving resettlement plans • Estimated population displacement and likely categories of displaced persons, to the extent
feasible; • Eligibility criteria for defining various categories of displaced persons; • A legal framework reviewing the fit between Borrower laws and regulations and Bank policy
requirements and measures proposed to bridge any gaps between them; • Methods of valuing affected assets; • Organizational procedures for delivery of entitlements, including, for projects involving private
sector intermediaries, the responsibilities of the financial intermediary, the government, and the private developer;
• A description of the implementation process, linking resettlement implementation to civil works;
• A description of grievance redress mechanisms; • A description of the arrangements for funding resettlement, including the preparation and
review of cost estimates, the flow of funds, and contingency arrangements; • Retroactive Financing • A description of mechanisms for consultations with, and participation of, displaced persons in
planning, implementation, and monitoring; • Disclosure • Arrangements for monitoring by the implementing agency and, if required, by independent
monitors 19. Eligibility Criteria for Entitlement to Compensation, Relocation and Rehabilitation Assistance. DPs eligible for compensation and rehabilitation will include: (a) those who have formal legal rights to land or other assets; (b) those who initially do not have formal legal rights to land or other assets but have a claim to legal rights based upon the laws of the country; upon the possession of documents such as land tax receipts and residence certificates; or upon permission of local authorities to occupy or use the project affected plots; and (c) those who have no recognizable legal right or claim to the land they are occupying. 20. Persons covered under (a) and (b) are provided compensation at full replacement costs for the land they lose, payment for non‐land assets they own and necessary assistance in cash or in‐kind. Persons covered under (c) are provided compensation at full replacement cost for non‐land assets they own and resettlement assistance in lieu of compensation for the land they occupy, and other assistance, as necessary, to achieve the objectives set out in this policy provided that they occupy the project area prior to the cut‐off date of the project. 21. Persons who occupy the project area after the cut‐off date will not be eligible to any compensation or assistance.
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22. The general principles of compensations provided are: • Compensation at replacement cost for houses and other affected structures.
• Compensation in terms of land for land of equal productive capacity acceptable to the DPs for
agricultural land (where land is not available, compensation is to be provided in cash at replacement cost).
• Replacement of premise/residential land of equal size acceptable to the DPs.
• Transfer and subsistence allowance.
23. In the design and implementation of the Sub‐projects, efforts will be made to ensure that all adverse impacts of acquisition of assets and properties are fully mitigated and that Project affected people are benefited and at a minimum, are not worse off. Toward this end, the key principles and measures will include the following:
• Involuntary resettlement and adverse affects on income and resources will be avoided or minimized by exploring all viable project options.
• DPs are provided with compensation for lost assets at replacement cost and additional assistance for loss of income sources and livelihood that will assist them to improve, or at least maintain their pre‐Sub‐project standard of living.
• The absence of a formal legal title to land is not a bar to the entitlements. Informal settlers who
are affected by the project will be entitled to compensation at replacement cost for affected structures and assistance for other losses.
• No demolition of assets and/or entry to properties will be done until a DP is fully compensated,
except when a court of law grants a Writ of Possession to the Sub‐project Proponent for the subject property in expropriation.
• Particular attention must be paid to the needs of the poorest affected households and other
vulnerable groups that may be at high risk of impoverishment. This may include affected households without legal title to land or other assets, households headed by women, the elderly or disabled.
• All sub‐project stakeholders, including DPs, are consulted and are encouraged to participate in
varying practicable ways in the design, implementation and operation of the sub‐project.
• Only those DPs found to be residing in, doing business in, or cultivating land, or having rights over resources within the project area as of cut‐off date (e.g., date of start of census surveys) are eligible for compensation for lost assets and for other assistance. DPs will be compensated
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for affected land, based on their tenure status (e.g. legitimate owner, lessee, etc.). Proof of ownership shall include full title and tax declaration of settlers in public land. However, in cases where a tax declaration over assets that are inalienable or those that cannot be titled as prescribed by law (e.g., river easement, forest reserve) is the only proof of ownership, only structures and other improvements found therein should be compensated.
• In addition to compensation for crops or property acquired or damaged by the sub‐project, the
sub‐project proponent will provide the following resettlement assistance to eligible DPs: (a) Financial assistance to tenants/settlers/occupants; (b) Rental allowance for house tenants of affected main structures who will have to find a new place on account of the project, equivalent to the period between project site clearing and transfer to their new home; and (c) Transportation assistance (in cash or in kind, depending on the mutual agreement of the DP and the sub‐project proponent) to DPs who are relocating, including displaced shanty dwellers in urban areas.
24. Site Selection and Relocation. If there are families have to be relocated because of the project impacts and resettlement sites are required, the Concessionaires will clearly describe in RP about alternative relocation sites considered and explanation of those selected, covering:
• institutional and technical arrangements for identifying and preparing relocation sites, for which a combination of productive potential, locational advantages, and other factors is at least comparable to the advantages of the old sites, with an estimate of the time needed to acquire and transfer land and ancillary resources;
• measures necessary to prevent land speculation or influx of ineligible Person at the selected sites;
• procedures for physical relocation under the project, including timetables for site preparation and transfer;
• legal arrangements for regularizing tenure and transferring titles to resettlers; and • housing, infrastructure, and social services. Plans to provide (or to finance resettlers' provision
of) housing, infrastructure (e.g., water supply, feeder roads), and social services (e.g., schools, health services); plans to ensure comparable services to host populations; any necessary site development, engineering, and architectural designs for these facilities.
• a description of the boundaries of the relocation area; and an assessment of the environmental impacts of the proposed resettlement and measures to mitigate and manage these impacts (coordinated as appropriate with the environmental assessment of the main investment requiring the resettlement).
25. Entitlements and compensation for the types of loss shall be guided by the Resettlement Entitlement Matrix shown in Table 2:
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Table 2: Entitlement Matrix Type of Loss
Application Entitled Person Compensation / Entitlement
1. Arable Land
Actual area needed by the project and the remaining land is still economically viable
Owners with full title, tax declaration or other acceptable proof of ownership; Farmer/s and farm worker population working in the land area acquired by the project with formal legal rights (including customary rights recognized by the laws of the country
For the portion of the land needed: Cash compensation at replacement cost for the land as determined by a licensed independent appraiser using internationally recognized valuation standards.
Subject to the provisions set forth in Section 5 of RA 8974.
Cash compensation for perennials of commercial value as determined by the DENR or concerned appraisal committee.
DP will be given sufficient time to harvest crops on the subject land.
Farmer/s and farm worker population without the title, tax declaration, or other acceptable proofs of ownership
For the portion of the land needed: DP will be given time to harvest crops. Cash compensation for perennials of commercial values as determined by DENR or the concerned appraisal committee.
Financial assistance to make up for the land preparation
Remaining land rendered economically unviable (i.e. DP losing >20% of land holding or even when losing <20% but the remaining land is not economically viable anymore)
Owners with full title, tax declaration or other acceptable proof of ownership; Farmer/s and farm worker population working in the land area acquired by the project with formal legal rights (including customary rights recognized by the
Cash compensation at replacement cost for the land as determined by a licensed independent appraiser using internationally recognized valuation standards, or, if feasible, ‘land for land’ will be provided ( anew parcel of land with an equivalent productivity, located at an area acceptable to the DP & with long‐term security of tenure.
Subsistence allowance DP will be given time to harvest crops. Cash compensation for perennials of commercial value as determined by the DENR or concerned appraisal committee.
If relocating, DP to be provided free transportation Rehabilitation assistance (skills training and other development activities) will be provided in coordination with other government agencies if the present means of livelihood is no longer viable and DP
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laws of the country
will have to engage in a new income activity.
Farmer/s and farm worker population without the title, tax declaration, or other acceptable proofs of ownership,
Financial assistance equivalent to the average annual gross harvest for the past 3 years
DP will be given sufficient time to harvest Cash compensation for perennials of commercial value as determined by the DENR or concerned appraisal committee.
Financial assistance to make up for the land preparation
If relocating, DP to be provided free transportation Rehabilitation assistance will be provided in coordination with other government agencies if the present means of livelihood is no longer viable and DP will have to engage in a new income activity.
Agricultural lessees, farm workers and informal settlers
As per RA 6389 and EO 1035 Disturbance compensation equivalent to 5 times the average gross harvest on land holding during the 5 preceding years but not less than Php 15,000 per hectare.
Rehabilitation assistance 2.Residential land and/or Commercial land
Actual area needed by the project and the remaining land is still viable for continues use
Owners with full title, tax declaration or other acceptable proof of ownership.
For the portion of the land needed: Cash compensation at replacement cost for the land as determined by a licensed independent appraiser using internationally recognized valuation standards.
Subject to the provisions set forth in Section 5 of RA 8974.
Cash compensation for perennials of commercial value as determined by the DENR or concerned appraisal committee.
Squatters Affected Squatters/informal settlers will not be entitled to compensation for affected land.
Compensation for investments made on the affected land parcel
Remaining residential or commercial land becomes not viable for continued use
Owners with full title, tax declaration or other acceptable proof of ownership.
Cash compensation at replacement cost for the land as determined by a licensed independent appraiser using internationally recognized valuation standards.
Subject to the provisions set forth in Section 5 of RA 8974, or if feasible, ‘land for land’ will be provided in terms of a new parcel of land of equivalent productivity, at a location acceptable to DP, and with long‐term security of tenure. The replacement land should be of acceptable size under zoning laws or a plot of equivalent value, whichever is larger, in a nearby resettlement with adequate physical, social
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infrastructure. When the affected holding is larger in value than the relocation plot, cash compensation will cover the difference in value.
Cash compensation for perennials of commercial value as determined by the DENR or concerned appraisal committee.
If relocating, DP to be provided free transportation. Squaters and informal Settlers
Affected squatters and other infrmal settlers will not be entitled to compensation for affected land
Compensation for affected structures and other investments made on the land;
Relcoation assistance
3. Main structures (e.g. house, shops, etc)
Structure with or without a building permit partially affected and the remaining structure is still viable for continued use.
Owners of structures with full title or tax declaration to the land.
Compensation in cash for affected portion of the structure including the cost of restoring the remaining structure as determined by the concerned appraisal committee with no deduction for salvaged building materials.
DPs that have business affected due to partial impact on the structure are entitled to a subsistence allowance for the loss of income during the reconstruction period (to be computed by LRIC).
Owners of structures, including shanty dwellers in urban areas, have no title or tax declaration to the land or other acceptable proof of ownership.
Compensation in cash for affected portion of the structure including the cost of restoring the remaining structure as determined by the concerned appraisal committee with no deduction for salvaged building materials.
Shanty dwellers in urban areas opting to go back to their place of origin or to be shifted to government relocation sites will be provided free of transportation.
DPs that have business affected due to partial impact on the structure are entitled to a subsistence allowance for the loss of income during the reconstruction period.
Professional squatters will not receive compensation but they can collect their salvaged materials.
Renters of structures including renters of shanty dwelling in urban areas
Given 3 months notice on the schedule of demolition If shifting is required, DP is given transitional allowance equivalent to one month rent of a similar structure within the area.
For house tenants renting outside of, or within the ROW, and who have to transfer elsewhere, free transportation will be provided.
Renting shanty dwellers in urban areas who opt to go back to their place of origin in the province of be shifted to government relocation sites will also be provided free
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of transportation.Entire structure affected or when remaining structure becomes not viable for continued use with or without a building permit.
Owners of structures with full title or tax declaration to the land.
Compensation in cash for the entire structure at replacement cost determined by the concerned appraisal committee without deduction for salvaged building materials.
Inconvenience allowance DPs that have business affected due to the severe impact on the structure are entitled to a subsistence allowance for the loss of income during the reconstruction period. Free transportation, if relocation is necessary.
Rehabilitation assistance in the form of skills training and other development activities will be provided in coordination with other government agencies if the present means of livelihood is no longer viable and the DP will have to engage in a new income activity.
Encroachers will not receive compensation but they can collect their salvaged materials.
Renters of structures including renters of shanty dwelling in urban areas
Given 3 months notice on the schedule of demolition: If shifting is required, DP is given transitional allowance equivalent to one month rent of a similar structure within the area.
For house tenants renting outside of, or within the ROW, and who have to transfer elsewhere, free transportation will be provided.
Renting shanty dwellers in urban areas who opt to go back to their place of origin in the province of be shifted to government relocation sites will also be provided free of transportation.
Rehabilitation assistance (skills training and other development activities) will be provided in coordination with other government agencies if the present means of livelihood is no longer viable and DP will have to engage in a new income activity
4.Independ‐ent shops
Shops with or without building permit, partially affected and the remaining structures are still viable for continued use.
Owners of structures with or without full title or tax declaration to the land.
Compensation is cash for affected portion of the structure, including the cost of restoring the remaining structure as determined by the concerned appraisal committee without deduction for salvaged building materials.
As determined by the LRIC, DPs will be entitled to transitional allowance to cover for their computed income loss during the demolition and reconstruction of their shops, but not to exceed a month period.
Renters (tenants) of affected shops
As determined by the LRIC, shop renters will be entitled to a transitional allowance to cover for their computed income loss during the period that their business is
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interrupted.Entire shop affected or when the remaining structure becomes not viable for continued use with or without building permit
Owners of structures with or without full title or tax declaration to the land.
Compensation is cash for entire structure at replacement cost as determined by the concerned appraisal committee without deduction for salvaged building materials.
Subsistence allowance to each DP Free transportation if relocating. Rehabilitation assistance in the form of skills training and other development activities will be provided in coordination with other government agencies if the present means of livelihood is no longer viable and the DP will have to engage in a new income activity.
Professional squatters will not receive compensation but they can collect their salvaged materials.
Renters (tenants) of affected shops
Given 3 months notice on the schedule of demolition As determined by the LRIC, shop renters will be entitled to a transitional allowance to cover for their computed income loss during the period that their business is interrupted, but not to exceed a 3‐month period.
5. Other fixed assets or structures
Loss of, or damage to affected assets, partially or entirely
DPs Cash compensation for affected portion of structure, including cost of restoring remaining structure as determined by the concerned appraisal committee, with no depreciation or deduction for salvaged building materials.
6. Electric and/or water connection
Loss of, or damage to affected assets, partially or entirely
DPs Compensation to cover cost of restoring facilities.
7. Public facilities
Loss of, or damage to public infrastructure
Concerned agencies
Compensation in cash at replacement cost to respective agencies.
8. Temporary Impacts on structures and other assets due to civil works
Owner/operator of the affected plot and/or structures or businesses
All DPs DPs will be given one month notice prior to start up of civil works..
Cash compensation for loss of income potential for the period of temporary impact;
Compensation for standing crops and trees as per the market rate;
Restoration of land to its previous or better quality. contractor to negotiate a rental rate with the owner for temporary acquisition of land.
Project and contractor to ensure that persons other than the owner affected as a result of the temporary acquisition are compensated for the temporary period
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for any loss of incomes.9. Any unanticipated adverse impact due to project intervention
Any unanticipated consequence of the project will be documented and mitigated case by case basis based on the spirit of the principles agreed upon in this policy framework.
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E. Institutional Arrangements
1. Roles and Responsibilities of Key Institutions
26. The key institutions having accountability for the implementation of this Framework are: (i) LBP, as the Borrower; and ii) MWCI and MWSI as the Sub‐Borrowers, who are the sub‐project proponents and implementers. The following GOP institutions – DENR, LLDA and LGUs ‐ have regulatory oversight to ensure that the project is compliant with relevant national laws and regulations. A brief description of these institutions together with their roles and responsibilities in planning and implementation of sub‐projects is presented in Table 1. 27. It is the responsibility of the Sub‐Borrowers to carry out the necessary surveys and field investigations required by the RPF, and to obtain the approval on the necessary safeguards documents from appropriate authorities for each sub‐project before starting the resettlement implementation. The Sub‐Borrowers are responsible for the quality and accuracy of the information in the RAP or an ARAP, as well as the transmission of the social safeguards documents to the LBP and the Bank.
Table 1: Institutional Roles and Responsibilities in planning and implementation of sub‐projects
Sub‐Project EA process Sub‐Borrower Borrower
Identification/ Screening
Env: Screens and scopes sub‐projects in coordination with relevant agencies. Determines category of sub‐projects as A, B or C.
Soc: Determines level of impact and mode of land acquisition; identifies key stakeholders; undertakes public consultations.
Confirms the category (env); informs the Bank.
Project preparation/ documentation
Prepares and submits to Borrower for review the following documents.
Env • Cat A: EIA that includes Contingency Plan and EMP. • Cat B: EIA or IEE and EMP • Cat C: Project description and EMP depending on size and nature of activities
Soc: ARAP and or RAP, RCR, Due Diligence
Reviews documents for acceptability to the Bank.
Review and clearance of documentation prior to appraisal by Bank.
Env: Transmits approved ECCs and other relevant government permits and clearances to the Borrower.
Soc: Submits safeguard documents (RAP, ARAP, RCR) to Borrower.
Exercises environmental due diligence
Reviews documents acceptable to the Borrower, submits to the Bank.
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Sub‐Project EA process Sub‐Borrower Borrower
Implementation ‐ Supervision, Monitoring and Evaluation
Env Monitors project compliance as per ECC and EMP/ EIS, IEE Submits SECR including EMoP and SMR Conducts Annual Third Party Environmental Performance Audit and Environmental Audit Report Soc: Provides resources for all activities related to the resettlement planning and implementation / Ensures projects are in compliance with the ESSF / Provides periodic Progress reports, incorporating monitoring results, to the Borrower.
Monitors project implementation and submits SECR to the Bank on a semi‐annual basis Reviews Environment Audit Report, Conducts regular monitoring of safeguards implementation for submission to the World Bank.
Land Bank of the Philippines (LBP)
28. LBP is the Borrower under the MWMP and will act as the servicing agent of the Government. LBP will on‐lend the loan funds to the two Sub‐Borrowers, namely: MWCI and MWSI. As the Borrower, it shall perform oversight function to ensure that environmental and social safeguards covenants are complied with. MWCI and MWSI will submit environmental and social safeguards documents (i.e., EA, ECCs, CNCs, EMPs, land titles, RAPs, etc.) to the LBP’s CBD‐I. LBP will make the funds available for the project.
29. Throughout the implementation of the Project LBP will provide the necessary resources and staff to meet the social safeguards requirements that will include tapping the personnel of the Program Management Department II (PMD‐II) for the social safeguards compliance. The social safeguards counterpart staff of the LBP is now actively involved in the MWMP preparation. One of the functions of PMD‐II is managing Official Development Assistance (ODA) funds. It is involved in the safeguards monitoring of the World Bank’s Support for Strategic Local Development and Investment Project (SSLDIP) where the expertise of LBP on social safeguards operations was developed and continues to be demonstrated. They will be assisted by a Consultant to fulfill their monitoring and reporting requirements. Trainings will be conducted, with the assistance of WB, to further enhance the capacity of LBP to process the safeguards requirements of the project. In addition the Bank will review all safeguard documents prior to confirming its financing. This review will facilitate institutional strengthening of LBP. 30. The social safeguard documents will be reviewed by PMD‐II and ensure compliance to the conditions and provisions of the RPF. Similarly, the Sub‐Borrower through the PMD‐II will submit the social safeguard documents to World Bank for review and approval.
31. As the loans for investment financing are channeled to the Sub‐Borrowers through the LBP, LBP shall require sub‐projects to comply with existing national laws and regulations regarding land acquisition and resettlement and with applicable Bank policy on involuntary resettlement.
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Manila Water Company, Inc. (Manila Water)
32. The Program Management Department is the overall in‐charge entity for project conceptualization, development, approval, procurement, execution and close‐out. The Program Manager is in charge of all stages of the project until closure and turnover to the Operations Group. The feasibility studies are undertaken by the Program Manager, who makes sure that the bid documents are responsive to the objectives of the project. He/she orchestrates all necessary material, personal and financial resources available to Manila Water to ensure project completion according to the schedule and at the best quality possible.
33. The Project Delivery Group takes charge of project procurement and execution, until commissioning and turnover to the Operations Group. Its main role is to deliver the infrastructure and hardware in working condition to the Facility Manager.
34. MWCI will make funds available to implement the RPF for the duration of the project. This budget is allocated for the following activities: training, RAP or ARAP preparation, reporting and consultancy services. Likewise, trainings will be conducted, with the assistance of WB, to further enhance the capacity of MWCI to process the safeguards requirements of the project. Funds will also be allocated for preparation of resettlement action plans and land acquisition.
35. The Operations Group is the ‘owner’ of the facilities. Its biggest groups are the Water Supply Department and the Wastewater Operations Department. Each facility or facility cluster is headed by a Facility Manager who is in charge of day‐to‐day operations, including process control and vendor management. He/she is already on board from the conceptualization of the project but takes over the facility after commissioning.
Maynilad Water Services, Inc. (Maynilad)
36. The social safeguard issues will be handled by the Environment Management Department (EMD). The Right of Way (ROW) Unit is responsible in locating/identifying land needed for the construction of project structures and facilities. Once a potential land area has been located, the Wastewater Management Division conducts community consultation to introduce the project to the community and gather their reactions. If the community accepts the concept of the project, the potential land area is listed and the ROW unit undertakes further investigation of the potential land and its landowner. Land purchase negotiations is also undertaken by the ROW Unit.
37. MWSI will make funds available to implement the RPF for the duration of the project for the following activities: preparation of necessary instruments related to Land Acquisition and Resettlement of Displaced Persons; conduct of public consultation; training; implementation and monitoring. Likewise, trainings will be conducted, with the assistance of WB, to further enhance the capacity of Maynilad to process the safeguards requirements of the project.
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Department of Environment and Natural Resources (DENR) and Laguna Lake Development Authority (LLDA)
38. The role of the DENR in social safeguards is limited to providing rates for affected tree crops in a subproject as and when such a request is made by the Sub‐Borrowers. LLDA leads, promotes and accelerates sustainable development in the Laguna de bay watershed where some of the sub‐catchment areas of this project are found. It enforces, among other environmental laws, the Clean Water Act in the Laguna de Bay watershed.
Local Government Units (LGUs)
39. The LGUs being referred to could be the Barangay, City and/or Municipality where the Sub‐project is located. The role of the LGUs is to ‘facilitate’ planning and implementation of sub‐projects in their respective areas, specifically:
• to enforce the National Building Code which includes the issuance of the locational clearance and the building permit of civil works which include wastewater treatment facilities and sewer networks in their area of jurisdiction;
• to assist sub‐project proponents in identifying potential land needed for the construction of wastewater treatment facilities;
• to assist in conducting of public information campaign by the Concessionaires and help to ensure the participation of the public, especially the DPs;
• to assist Concessionaires in receiving complaints and grievances from DPs and other stakeholders and resolving the same; and
• to provide assistance to Concessionaires in the enforcement of laws/ordinances regarding encroachment into the sub‐project site or its ROW.
2. Institutional Strengthening and Capacity Building
40. The capacity of the LBP in managing the social safeguards requirements and procedures is assessed to be satisfactory. LBP has demonstrated its capacity in the safeguards management of the SSLDIP, an ongoing WB financed project with LBP as its financial intermediary. The Borrower is able to provide technical assistance to the local government units in the screening of projects for impacts, preparation, implementation and monitoring of 6 ARAPs. The social safeguards counterpart staff prepares and submits to the Bank semi‐annual reports that indicate the status of compliance by LGUs on conduct of social impacts including quality of public consultations held and issues addressed during implementation of mitigation plans. The LBP staff is actively participating in the MWMP preparation. Compared to the magnitude of SSLDIP (nationwide with more than 100 LGU Sub‐ Borrowers), MWMP is more manageable in regards to the social safeguards issues. It is also noted that the technical capacities of MWSI and MWCI
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for safeguards operations are much higher than many LGU counterpart staff with whom the LBP has dealt with under SSLDIP. 41. The Borrower and Sub‐Borrowers have prior experience working with the Bank in previous loan projects where the environmental safeguards are required. The Borrower has implemented the Water Districts Development Project, the SSLDIP and the Manila Third Sewerage Project. As for Manila Water, they are involved in the Manila Third Sewerage Project wherein the environmental safeguards are also required. Maynilad has also worked with the Bank on MTSP‐GEF. In addition, MWSS is familiar with Bank procedures through previous operations and will provide the necessary guidance, as needed. Also, MWSS staff can provide guidance to Manila Water and Maynilad, as necessary. 42. Both the Concessionaires have adequate capacity to carry out sub‐project preparation and they have each established a team to carry out the project. In addition, training will be provided to ensure familiarity with processes to be carried out under the project. Both Concessionaires have clear systems of audits and accountability in place (public disclosure of financial statements in accordance with international standards); their procurement practices are in line with international good practice and both companies regularly carry out large investments taking into consideration environmental and social issues. 43. Capacity Building and Training Requirements: LBP will hire consultants to strengthen its capacity and assist in project implementation. The Sub‐borrowers will allocate funds for training on safeguards related matters for the project. To ensure that the procedures laid out in the RPF are implemented properly, the following trainings modules will be provided by the Bank for the staff of LBP, MWCI, MWSI and the LGUs who are responsible for the social safeguards aspects:
• Course on WB Safeguards Policies and their application per project stage
• Preparation of an ARAP and a Full RAP
• How to Conduct Public Consultation
• Grievance Mechanism
• Monitoring of resettlement implementation
44. Although the Borrower has sufficient capacity to manage social safeguards requirements and to provide guidance to the Concessionaires in accordance with the provisions of the RPF, the Bank will review all subprojects implemented in the first year and will continue review and approve all subprojects with significant involuntary resettlement issues to ensure that the subprojects are in full compliance with the requirements of the RPF and the World Bank’s relevant safeguards policy, and until it is fully satisfied that the Concessionaires have achieved capacities to the level they can function without any oversight by the Bank.
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F. Resettlement Planning and Implementation Process
45. In general, the provisions of the RPF would be applicable in all the sub‐projects that result in adverse social impacts, permanent and temporary, due to the acquisition of land and other assets or causing loss of incomes and livelihood. However, the requirements for surveys and documentation would vary depending upon the mode of acquisition of land by the Concessionaires. Where the land is obtained through direct negotiations between the Concessionaires and the land owners and the responsibility to relocate any occupants on the land rests with the land owners, the Concessionaires should ensure that the compensation and other assistance provided to affected households are adequate to enable affected households to restore their livelihood and income levels to pre‐displacement levels. In this respect, Concessionaires should provide a RCR to Land Bank to demonstrate that the procedures carried out for the land acquisition and the compensation provided are in line with the RPF and that the process to acquire land through open market purchase is in accordance with the proposed protocol specified in the RPF.
1. Key Steps
46. The Sub‐Borrowers will be responsible for providing resources for all activities related to the resettlement planning and implementation. Where in a subproject OP 4.12 is triggered, the Concessionaires will carry out necessary studies (census, inventory of assets, etc.) and prepare necessary documents (Resettlement Action Plan (RAP) / Abbreviated Resettlement Action Plans (ARAP). The scope and contents of the RAP or an ARAP) will follow the provisions of the World Bank’s OP 4.12 Annex A. Each RAP, ARAP and RCR will include detailed cost estimates for compensation and relocation of DPs disaggregated by category of DPs and types of impacts and assets lost. Cost estimates will make adequate provisions for contingencies. In case of any over‐run of costs, relevant Concessionaires will provide additional funds in a timely manner to ensure that the implementation of involuntary resettlement activities is completed according to the schedule. All costs in regards to the acquisition of land and other assets, compensation and financial assistance to affected households would be included towards cost of the sub‐projects. The procedures that would be followed to meet the safeguard requirements are outlined below.
Identification of sub‐projects according to selection criteria
47. Potential sub‐projects are identified by the respective Concessionaires based on the overall project objectives and needs assessment. First step in this respect would be on selection of sites and getting general agreement from the communities in the adjoining areas before the site is considered as final. In the past, neighborhoods resisted construction of STPs in their immediate vicinity. Together with the NIMBY syndrome, citizens have expressed concerns on possible foul odor and noise. To mitigate these fears, the subproject proponents have incorporated community tours to operating STPs as part of the community awareness programs. At this stage, the Concessionaires are also required to identify the types, degree and scale of
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potential social impacts of the sub‐project. To correctly identify the relevant social issues and to assess the type and level of information required during subsequent field investigations, particular attention will be paid to adverse impacts to the affected community, such as loss of land and other fixed assets and the number of persons marginally or severely affected and the types of vulnerable groups affected. Preliminary social and land acquisition assessment will also help in identification of risks and in deciding whether or not to proceed with the project or to consider alternatives to ensure that the adverse impacts are avoided, or minimized if cannot be avoided. During this stage, the sub‐project proponent should identify key stakeholders, local NGOs and DPs. They should then undertake public consultation to: (a) provide information on the project, its benefits and impacts; (b) obtain feedback from the public; and (c) discuss the plan for the participation process and the roles of the community, NGOs and other key stakeholders.
Social Safeguards Screening
48. The Concessionaires are required to carry out screening of the project to determine scale of impacts: marginal or severe and the consequent need for further field investigations, surveys and documentation necessary in order to meet the requirements specified in the RPF. In cases where social screening results to significant social impact, a social assessment will be undertaken as part of the Environment Assessment (EA), as specified in para 3 of OP 4.01, by the Sub‐Borrower irrespective of whether there is land acquisition or involuntary settlement. Additionally, the Concessionaires will also screen the sub‐projects for national/provincial laws and regulations regarding land acquisition and involuntary resettlement.
Project Preparation and Documentation
49. The types of surveys and field investigations required and social safeguards documents that would need to be prepared for a sub‐project will depend upon the degree and scale of the impacts and the method adopted for acquisition of private assets for the sub‐project. Depending upon the degree and scale of impacts and based on the data collected through the field investigations, a full RAP or ARAP will be prepared. The scope and contents of the RAP or ARAP) will follow the provisions of the World Bank’s OP 4.12, Annex A. In cases where the sub‐project affects and/or displaces more than 200 persons a time‐bound RAP will be prepared in accordance with the provisions of this Framework. In cases where the impacts of the sub‐project are marginal such that less than 200 persons are affected and/or displaced, or where the impacts are minor, an ‘ARAP’ should be prepared. In cases while land has already been acquired, a due diligence report or its equivalent will be prepared. 50. Where the land is to be acquired using the power of eminent domain (Involuntary land acquisition), the Sub‐Borrower is required to conduct surveys to collect information on census of affected households, inventory of losses and socio‐economic characteristics as specified during the screening. Prior to undertaking the survey the project proponent should implement a public
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information campaign to describe the project components, types of impacts, content and schedule for the census and inventory or other background surveys. 51. Where in a sub‐project required land is obtained under open market purchase through direct negotiations with the land owner, as is the current practice by the MWCI and MWSI, the Sub‐Borrower will hire a professional appraiser to conduct appraisal, including valuation, of the potential site before any decision is taken to proceed with the negotiations with the land owner/s. The Sub‐Borrower is also required to conduct detailed survey of the occupants and improvements on the land parcel to record all types of potential losses, if any, due to the acquisition of the land. As per the agreement between the Sub‐Borrower and the land owner, if the occupants on the land and their affected assets are to be relocated, the Sub‐Borrower should ensure that the affected households are provided sufficient support and financial assistance to enable them to improve, or at least restore their livelihood to pre‐displacement level. 52. When negotiations for acquisition of private assets are carried out on a Open market purchase basis, cases will be carefully documented so as to ensure they meet the policy requirements to be considered, such as land free of encumbrances, no coercion, and ability of the land owner to say no to any sales without the threat of eminent domain land acquisition. This RPF provides a protocol to define objectives, and procedures (see para 56). 53. In cases where the Sub‐project Proponent has already acquired the land needed for the project and that the occupants of the land acquired have been relocated as an agreement between the landowner and the real estate agent of the Sub‐project Proponent, as in the case of The North and South Pasig Sewerage System STP of Manila Water, a RCR will be prepared. The content of the Completion Report are: project description, description/census of the occupants/project‐affected‐persons and inventory of their affected assets and properties including crops and trees (if any), compensation and other assistance provided to them, possible location where the occupants/DPs will be relocated and a detailed description of how the land was acquired. Documents required are Minutes of the consultation meetings with the occupants, Property (land) Appraisal Report. Based on the RCR, the Borrower will conduct Due Diligence (Resettlement Audit) which will be reviewed by the Bank to check whether the acquisition of land and other assets is consistent with the requirements of the ESSF, and will develop a plan to fill any gaps.
Review and Clearance of Social Safeguards Documents
54. The sub‐project proponent will submit all social safeguards documents (ARAP and/or RAP, RCR) to the Borrower, who will review these documents for compliance with the Social Safeguards Framework. The Borrower will approve, refuse approval or request revisions/reformulation of these documents after review and clearance by the Bank. The Borrower will submit to the World Bank all RAPs, ARAPs and RCRs after it has ensured that the
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documents meet the requirements of the ESSF before the sub‐project is approved for implementation.
Implementation ‐ Supervision, Monitoring and Evaluation
55. The Sub‐project proponents will supervise and monitor the implementation of the social safeguards in each sub‐project to ensure that they are implemented in accordance with the approved documents and are in compliance with the RPF. Periodic progress reports, incorporating the Social and Environmental Compliance Report (SECR) will be prepared and submitted to the Borrower and to the World Bank on a regular basis. The Borrower, through its PMD‐II will carry out regular monitoring of safeguards implementation of the two Concessionaires and consolidates for submission to the World Bank. 56. In case of non‐compliance with the provisions of the RPF, the LBP, in consultation with the respective subproject proponent discuss appropriate measures or remedial actions and implementation schedule for such measures/actions. Subproject proponent will be required to implement such measures within the agreed time‐frame at its own cost, failing which LBP would take additional measures, which could include suspending further disbursement, until the remedial measures are implemented to the satisfaction of LBP. Monitoring and Reporting requirements are described in Section 11 of this RPF.
2. Procedures for Land Acquisition 57. Land acquisition for subprojects will be carried out mainly through two modes of land acquisition depending upon the ownership of potential sites for sub‐projects.
Involuntary Resettlement (Land Acquisition Invoking OP 4.12)
58. Following modes of land acquisition will trigger WB’s OP 4.12 and the Concessionaires would be required to conduct necessary field investigations/surveys in accordance with the provisions of the RPF for resettlement plan preparation and implementation:
• Grant of Right–Of‐Way (ROW): Where sewer/wastewater mains/distributary lines pass through any private properties, the sub‐project proponent may seek the imposition of an Easement of Right‐of‐Way (ROW) provided for under the Philippine Civil Code. In such cases, a ROW easement agreement will be executed by the property owner and the sub‐project proponent, whereby the former will grant the latter the right to use the affected portion of the lot, as ROW, but the owner retains ownership of the said portion of the lot. In these cases and depending upon the agreement between the sub‐project proponent and the owner/s of the property, either the easement rights are given free of any charges or on some payment by the sub‐project proponent to the owner. The payment can be based on the value of the affected portion of the lot determined by an
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independent appraiser according to internationally accepted norms. In addition, the sub‐project proponent is required to compensate the owner for any improvements and/or structures on the land affected by the ROW at replacement cost. The sub‐project proponent will enter the easement area after the provision of the full payment for the easement to the property owner. The ROW easement agreement will be immediately registered with the Registry of Deeds.
• Usufruct: The Sub‐project Proponent may also acquire a property through usufruct. The property owner retains the ownership of the land, while the sub‐project proponent enjoys the benefit of the use of land. The sub‐project proponent and the property owner will execute a usufruct agreement. The agreement will cover the rights and responsibilities of the two parties, including the duration of the usufruct which should not be lower than the project life.
• Lease Agreement: The sub‐project proponent may also acquire lands through lease agreements with the rightful property owner. The sub‐project proponent and the property owner will execute a Lease Contract. The contract will cover the rights and responsibilities of the two parties, including the duration of the lease which should not be lower than the project life. Under this agreement, the land owners continue retain legal ownership of the land parcel. All land transaction should be registered with the Registry of Deeds for annotation in the title of subject property.
• Expropriation. Although both the MWCI and MWSI are private corporations, they are Concessionaires under the MWSS, which is a public enterprise. Both the Concessionaires have the option to acquire private properties for their sub‐projects using the legal process, eminent domain through MWSS. However, none of the Concessionaires have ever used eminent domain to acquire private properties.
Open Market Purchase – OP 4.12 is not triggered
59. Under the ongoing Manila Third Sewerage Project (MTSP) the project proponent, Manila Water was completely dependent on the respective Local Government Units (LGUs) to acquire and make the required land available for the project. However, the LGUs failed to acquire land for the project causing severe delays in project implementation. Similar experience in other projects caused severe delays and even cancellation of sub‐projects. Learning from the past experiences and to avoid recurrence of similar problems for this project, the two Concessionaires have decided to acquire the land themselves. Current procedures consisting of ‘open market purchase’ from the land owners, either through the brokers or in direct negotiations based on Willing Buyer‐Willing Seller basis, are borne out of experiences from previous projects. However, where open market purchase fail, other forms of land acquisition will be considered.
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60. Negotiated purchase of private assets is therefore, the most preferred mode of land acquisition by both the Concessionaires. Once a potential land parcel is identified, both the Concessionaires contract professional appraisers to obtain information on the legal and tenure status of the land in question, its market value and other issues that may be of relevance. Based on the findings of the appraisal reports, the Concessionaires enter into negotiations with the land owner. Since both the Concessionaires are private corporations, they enter into negotiations with the land owners either indirectly through a real estate agent (as in the case of Manila Water) or directly (as in the case of Maynilad through their ROW unit). Once the agreement is reached, the property owner issues a written permit to the sub‐project proponent to enter the property and a contract of sale is subsequently executed between the property owner and the sub‐project proponent. Since the Concessionaires plan to follow the open market purchase using direct negotiations with land owners for all future land requirements, a protocol for the project is proposed.
61. Key objectives of the Protocol for Open Market Purchase:
• to ensure a transparent and consultative process; • to ensure that compensation paid is at or above prevalent market prices to enable all
affected land owners to replace their affected assets; • to ensure that all the affected land owners are better‐off due to the project; and • to document public consultation and negotiation proceedings.
62. The protocol, presented below, will be followed by both the Concessionaires for the Bank funded projects. 63. Key Provisions of the Protocol include:
• Inventories of affected land and other fixed assets would be prepared in consultation with affected land owners and submit the same to the Borrower and the Bank;
• All land would be free from any disputes on ownership and encumbrances; • Concessionaires to ensure that the subprojects will in no way cause adverse impacts on
sources of incomes and livelihood of adjoining communities; • Negotiations for direct purchase would be carried out in a transparent manner; • All negotiation proceedings will be documented and the final agreement would be
signed by the negotiating parties; • The negotiated amount will be fully paid after the submission of the required
documents; and • Concessionaires will submit completed documents including maps together with the
subproject proposals to LBP and the World Bank to show the process used for obtaining the required land.
3. Method of Valuation of Affected Assets
64. The RPF provides for compensation for land and other affected assets at replacement cost. To meet the above objectives, the Concessionaires will follow the valuation procedures for different types of affected assets as below:
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• Land: The Concessionaires will contract professional appraisers for valuation of affected
land to determine prevalent market prices. In case of ‘open market purchase’ of land for subprojects, the negotiations for the land would be based on the market prices determined by the appraisers. Where land is acquired under eminent domain, the final prices of affected land will be at least equal to or higher than the prevalent market prices to ensure that the DPs are able to replace affected land at current market prices.
• Structures. The Concessionaires will ensure that the compensation for affected structures is paid at replacement cost based on current market prices for material and labor. The compensation for affected structures will be paid without any depreciation and deductions for salvaged material by the DPs. For the purpose, the Concessionaires will contract professional appraisers to conduct market surveys to determine prevalent market prices for material and labor to arrive at rates for different types of structures.
• Trees and crops. Compensation rates for affected trees provided by DENR and for affected crops by Department of Agriculture.
G. Public Participation, Consultation, and Grievance Mechanisms
1. Public Consultation and Participation
65. Information disclosure and public consultation are important and necessary in sub‐project preparation and implementation. These enable sub‐project affected people and other stakeholders to participate in and contribute to the sub‐project planning and implementation, and thereby help minimize adverse impacts and maximize sub‐project benefits. The level of public consultation and the scope of information dissemination will be commensurate with the degree and significance of the social impacts. Public consultation including information dissemination on key aspects of the project in general and resettlement issues in particular, will be ongoing throughout the resettlement planning and implementation in every sub‐project. 66. The draft ESSF, incorporating RPF, was an object of the public consultation with key institutional stakeholders on October 5, 2010. The ESSF/RPF was presented and discussed in detail during the consultation, which was attended by stakeholders with representations from various national and local government agencies and select non‐government institutions. The summary of the proceedings is presented in Annex 7 of the ESSF. Furthermore, copies were made accessible to the public through the Department of Environmental and Natural Resources, the Borrower and the Sub‐Borrowers through their website. Comments received have been incorporated. 67. Public consultation and participation ensures project acceptability and fosters good community relationship between the community, community leaders and the Sub‐project proponents. MWCI and MWSI have Zone Managers and Business Centers to work closely with
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communities to ensure better reception of their projects. The two Concessionaires will consult and provide relevant information to the community as early as possible. Information provided will include: the purpose, nature and scale of the project; and the duration of the proposed activities and of any risks to and potential impacts on the community. Documentation is the responsibility of the Concessionaries which will provide updates and feedbacks to the community, as needed, on the project activity. 68. Documentation. Both the Concessionaires will maintain detailed record of public consultation exercises to document: date and place of public consultation/meetings; information disseminated; issues discussed; feedback received from the participants; problems identified and actions taken; and names and number of participants. Minutes of meetings would be maintained and countersigned by the DPs, their representatives, civil society members and other key stakeholders.
2. Disclosure
69. Timing of local disclosure will vary depending on the type of assessment involved, the level of risks and impacts and the stage of the project’s development or operation. A key minimum requirement that should be taken into account when determining timing of local disclosure in all cases is, if local disclosure has not already taken place at the time of involvement of the Sub‐project Proponent, the Sub‐proponent should commence local disclosure activities as early as possible. 70. Social safeguard information to be disclosed will include, at a minimum: sub‐project information, impacts, and proposed mitigation measures. Disclosure could be done through community meetings, posters, booklets, newspapers, and the internet. Local disclosure of information should be targeted, at a minimum, to the directly affected communities (including project‐related workforce, where applicable). LBP and the two Concessionaires will be responsible for the making the information publicly available. Public disclosure of documentation shall be in accordance with LBP’s Executive Order No. 073 series of 2009 on Guidelines on Classification, Handling, Access and Disclosure of Information Assets, including any amendments thereof. 71. Documents to be disclosed include the ESSF incorporating RPF, SA, RAP or ARAP. These documents are made publicly available at public places accessible to project‐affected‐groups, NGOs and other interested stakeholders through the World Bank’s InfoShop. Documents will also be posted in the internet sites of LBP and the two Concessionaires. Where necessary, summary of RAP or an ARAP, particularly the summary of losses and entitlements, will be made available in the form and language understandable to the DPs.
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3. Grievance Redress Mechanism
72. A grievance redress mechanism for the project is necessary for addressing legitimate concerns of affected individuals and groups who may consider themselves deprived of appropriate treatment under the project. MWCI and MWSI have a Public Complaints Section in their Consumer Relations Departments to address all complaints and grievances received from members of the public. The Public Complaints Sections will be responsible to address and resolve any grievances from the DPs and other members of the public in regards to the sub‐projects. Complaints and grievances related to any aspect of the sub‐projects, including environmental and social safeguards issues, will be addressed as follows:
• Step 1: As a first stage, complainants will present their complaints and grievances to the Barangay officials for onward transmission of complaints to the Concessionaires. The sub‐project staff of the Concessionaires, together with the LGU officials, will make every attempt to resolve the grievances at the local level.
• Step 2: If the complaint is not addressed to the satisfaction of the complainant, or remain unresolved, for 15 days from the date of first submission, the complainant may then submit his/her complaint directly to the Complaints Section of the Consumer Relations Departments of MWCI and MWSI.
• Step 3: If the complaints are not addressed to the satisfaction of the complainant within
15 days from the date of submission to the Concessionaires, or remain unresolved, the complainant can approach the court of law.
73. Following principles will apply to address complaints and grievances in the project: • Complainants will be exempted from all administrative and legal fees incurred in
pursuant to the grievance redress procedures. All such costs will be borne by the respective Concessionaire.
• All complaints would be written, if received verbally, and documented properly. The Concessionaires will also put all relevant details of complaints and the actions taken on their respective website for the purpose;
• Designated staff with responsibility to address complaints would be appointed at various levels;
• Concessionaires will maintain proper documentation of all complaints received and actions taken. These documents would be available to the LBP which is responsible for monitoring.
74. The concessionaires will provide LBP with a report on any complaint received and actions taken. As the Borrower, LBP will monitor said complaints as part of its due diligence and
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closely coordinate with the Sub‐Borrowers on possible remedial actions to resolve complaints expeditiously and adequately. H. Resettlement Implementation 75. Land acquisition and relocation of affected households cannot commence until the RAP or ARAP has been reviewed by the Borrower and the Bank. The RAP or an ARAP will include implementation schedule wherein all resettlement activities will be coordinated with the civil works schedule. Once the RAP or ARAP is approved, the Borrower will issue its no objection letter to the Concessionaires to allow construction activities to begin. No demolition of assets and/or entry to properties will be done until a DP is fully compensated, except when a court of law grants a Writ of Possession to the Sub‐project Proponent for the subject property in expropriation. Where the land has already been acquired, the construction activities will begin only after the RCR for each subproject is reviewed and approved by the Borrower and the Bank.
I. Budget 76. The total cost of the proposed project is US$ 414.1 million with a Bank financing of US$ 275 million and US$ 139.1 million in equity investments provided by the Concessionaires. The total investment cost may change and it would depend on the actual investments that are carried out. The Bank loan of US$ 137.5 million would be made available to each Concessionaire for the investments and the rest of the investments would have to be borne by the Concessionaires. No front end fee7 will be financed from the Bank loan and the investment cost includes price and physical contingencies. For Component 1, the investment cost is US$ 193.4 million of which US$ 55.9 million will be financed by Manila Water and the rest by the Bank. For Component 2, the investment cost is US$ 220.7 million of which US$ 83.2 million is expected to be financed by Maynilad and rest by the Bank. Additional details are provided in the Project Appraisal Document.
1. Resettlement Cost 77. Resettlement cost for the sub‐projects would be borne by the respective Concessionaires. All resettlement costs would be included in the overall cost of the project. Respective RAP/ ARAP and RCRs for the sub‐projects will provide detailed account of the estimated resettlement cost. Sufficient provision will be made for contingencies. During implementation, in case of over run of costs, respective Concessionaires will make necessary funds available in a timely manner to ensure resettlement implementation in accordance with the schedule.
2. Retroactive Financing 7 Front end fee of US$ 687.5 thousand
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78. Retroactive financing is possible as long as the procurement procedures followed are in line with that of the project and the sub‐project eligibility criteria are satisfactorily met. Payments within twelve months before signing the Loan Agreement would be eligible for retroactive financing and the total retroactive financing can be up to twenty percent of the value of the Bank loan. For sub‐projects that are retroactively financed, a due diligence post‐review will be carried out for social impacts as follows:
• In subprojects where land has already been acquired, the Sub‐Borrower will review the sub‐project to ensure compliance with applicable national laws and provisions of this ESSF, including consultation and disclosure requirements. The Borrower, on its part, will carry out due diligence to determine how the land was acquired and whether or not there are any outstanding claims, issues or risks associated with land acquisition, compensation or ownership. If necessary, additional mitigation measures will be developed and implemented. For purposes of due diligence, the Borrower will consider two levels of assessment: i) for land acquired two years prior to the first identification mission by the Bank to determine whether or not the acquisition of land and resettlement was carried out in accordance with the national laws and regulations land whether there are any pending claims and legal issues; and ii) for land acquisition from the date of the first identification mission by the Bank or where land acquisition activities are currently undergoing or recently been completed, the provisions of the Bank’s OP 4.12, and the ESSF will be applicable.
• The SECR will be prepared by the Sub‐Borrower to briefly describe the safeguards aspects of each retroactively financed sub‐project. The post‐review reports and necessary mitigation measures will be reviewed by the Borrower and the World Bank. Compliance with the ESSF requirements is a condition for retroactive financing under the project.
J. Supervision and Monitoring
79. The implementation of the sub‐projects would be carried out by the Concessionaires, including actions related to safeguards. LBP will monitor the project implementation and submit to the Bank a Social and Environmental Compliance Report (SECR) on a semi‐annual basis that will state how the Bank’s policies are being met and what corrective actions, if any, are being taken. The SECR would be prepared by the Borrower, based on inputs provided by the Concessionaires. LBP as a Borrower of the Bank loan will oversee safeguard operations and ensure that the Sub‐Borrowers are in compliance with the procedures outlined in this RPF and the ESSF. In case of non‐compliance with the provisions of the RPF, the LBP, in consultation with the respective subproject proponent discuss appropriate measures or remedial actions and implementation schedule for such measures/actions. Subproject proponent will be required to
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implement such measures within the agreed time‐frame at its own cost, failing which LBP would take additional measures, which could include suspending further disbursement, until the remedial measures are implemented to the satisfaction of the Borrower. 80. Each Concessionaire will monitor resettlement implementation activities regularly to ensure that implementation of resettlement is carried out in accordance with the approved RAP or ARAP. The Concessionaires will submit a periodic SECR, which will include an Environmental Monitoring Plan (EMoP) and a Self‐Monitoring Report (SMR) on a semi‐annual frequency (i.e., within January and July of each year). Copies of the submitted Sub‐Borrower’s SECR and SMR must be provided in two sets to LBP for reference and review purposes. LBP will be responsible for monitoring and evaluating the SECRs and SMRs submitted by the Sub‐Borrowers. One set of the SECR and SMR received by the Borrower will be transmitted to the Bank for further review. The Sub‐Borrower’s SECR and SMR will include the following: information on the data collection; discussion on the compliance or non‐compliance to the RAP, EMP and ECC; corrective actions, if any; conclusions and recommendations; and photographs, as needed.
81. External Monitoring. In sub‐projects with significant (200 persons or more) resettlement, including physical and economic displacement of large number of households, the Sub‐Borrower will, in consultation with the Borrower and the Bank, contract an external monitoring agency / consultant group, with adequate experience in involuntary resettlement to conduct periodic independent monitoring of resettlement implementation by the Concessionaires in the sub‐project/s. The external monitors will submit their periodic monitoring reports to the Borrowers and a copy of its monitoring report to the Bank directly.