FOR OFFICIAL USE ONLY RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF

Transcription

1 Public Disclosure Authorized Document of The World Bank FOR OFFICIAL USE ONLY Report No: RES22361 Public Disclosure Authorized Public Disclosure Authorized RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF INDIA: CAPACITY BUILDING FOR INDUSTRIAL POLLUTION MANAGEMENT PROJECT LN.79240/ CR June 3, 2010 TO THE REPUBLIC OF INDIA May 3, 2016 Public Disclosure Authorized Environment & Natural Resources Global Practice South Asia Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.

2 ABBREVIATIONS AND ACRONYMS APPCB BP CAAA CAO CAS CPCB CBIPMP CPF ECAC FM ESA ESMF ESMP FPIC GAAP GOI GOT HW IBRD IDA IFR KMC NGO NMK MOEF&CC NPRPS OP PAD PCB PDO PIU PMU POC PSC ST TEP TSPCB WBPCB Andhra Pradesh Pollution Control Board Bank Procedure Controller of Audit and Accounts Chief Accounting Officer Country Assistance Strategy Central Pollution Control Board Capacity Building for Industrial Pollution Management Project Country Partnership Framework Environmental Compliance Assistance Center Financial Management Environmental and Social Assessment Environmental and Social Management Framework Environmental and Social Management Plan Free, Prior and Informed Consultations Governance and Accountability Action Plan Government of India Government of Telangana Hazardous Waste International Bank for Reconstruction and Development International Development Association Interim Financial Reports Kadapa Municipal Corporation Non-Governmental Organization Noor Mohammad Kunta Lake Ministry of Environment, Forest and Climate Change National Program for the Remediation of Polluted Sites Operational Policy Project Appraisal Document Pollution Control Board Project Development Objective Project Implementation Unit Project Management Unit Project Oversight Committee Project Steering Committee Scheduled Tribe Technical Expert Panel Telangana State Pollution Control Board West Bengal Pollution Control Board Regional Vice President: Country Director: Senior Global Practice Director: Practice Manager/Manager: Task Team Leader: Annette Dixon Onno Ruhl Paula Caballero Kseniya Lvovsky Harinath Sesha Appalarajugari i

3 INDIA Capacity Building for Industrial Pollution Management Project CONTENTS DATA SHEET... 1 A Summary of Proposed Changes... 2 B. Project Status... 3 C. Proposed Changes... 4 Annex 1: Revised Results Framework ii

4 DATA SHEET India India - Capacity Building for Industrial Pollution Management (P091031) SOUTH ASIA Basic Information Project ID: P Lending Instrument: Specific Investment Loan Regional Vice President: Annette Dixon Original EA Category: Full Assessment (A) Country Director: Onno Ruhl Current EA Category: Full Assessment (A) Senior Global Practice Director: Practice Manager/Manager: Team Leader(s): Paula Caballero Original Approval Date: 03-Jun-2010 Kseniya Lvovsky Current Closing Date: 15-Sep-2017 Harinath Sesha Appalarajugari Borrower: Responsible Agency: Ministry of Environment, Forests & Climate Change Andhra Pradesh Pollution Control Board, West Bengal Pollution Control Board, and Telangana State Pollution Control Board Restructuring Type Form Type: Full Restructuring Paper Decision Authority: Restructuring Level: Level 1 Board/AOB Decision Financing ( as of 10-Feb-2016 ) Key Dates Project Ln/Cr/TF Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P IBRD Effective 03-Jun Jul Oct Sep Sep-2017 P IDA Effective 03-Jun Jul Oct Sep Sep-2017 Disbursements (in Millions) Project Ln/Cr/TF Status Currency Original Revised Cancelled Disbursed Undisbur sed % Disbursed P IBRD Effective USD P IDA Effective USD

5 Policy Waivers Does the project depart from the CAS/CPF in content or in other significant respects? Does the project require any policy waiver(s)? Yes [ ] No [ X ] Yes [ ] No [ X ] A Summary of Proposed Changes This Restructuring Paper seeks the approval of the Executive Directors to: (i) trigger safeguard policy, OP 4.10: Indigenous Peoples, which is necessitated due to the anticipated livelihood impacts on the Scheduled Tribes community identified by the Environmental and Social Assessment Study carried out for Kadapa Municipal Solid Waste sub-project in the state of Andhra Pradesh; and (ii) revise the Project Development Objective (PDO) to provide clarity and align with intended outcomes of the project. Other proposed changes to the project are: (i) inclusion of Telangana State - which was formed as a result of the bifurcation of Andhra Pradesh - as one of the Project States and its Pollution Control Board as a new implementing agency; (ii) revision of cost allocations for the implementing agencies to include actual cost estimates from the detailed remediation plans for sub-projects, project management costs for the new implementing agency, and funds for project management during the extended period of Project implementation; (iii) dropping of the Hooghly Remediation sub-project (which cannot be implemented within the project period); (iv) canceling of US$10.50 million from the IBRD savings; and (v) revision of the results framework to ensure alignment between the PDO statement and intermediate indicators. The changes proposed are based on a request from the Government of India and reflect discussions and agreements reached between the Bank and the project counterparts over the last few months. Change in Implementing Agency Yes [ X ] No [ ] Change in Project's Development Objectives Yes [ X ] No [ ] Change in Results Framework Yes [ X ] No [ ] Change in Safeguard Policies Triggered Yes [ X ] No [ ] Change of EA category Yes [ ] No [ X ] Other Changes to Safeguards Yes [ ] No [ X ] Change in Legal Covenants Yes [ X ] No [ ] Change in Loan Closing Date(s) Yes [ ] No [ X ] Cancellations Proposed Yes [ X ] No [ ] Change to Financing Plan Yes [ X ] No [ ] Change in Disbursement Arrangements Yes [ ] No [ X ] Reallocation between Disbursement Categories Yes [ X ] No [ ] Change in Disbursement Estimates Yes [ X ] No [ ] Change to Components and Cost Yes [ X ] No [ ] Change in Institutional Arrangements Yes [ X ] No [ ] Change in Financial Management Yes [ ] No [ X ] Change in Procurement Yes [ ] No [ X ] 2

6 Change in Implementation Schedule Yes [ X ] No [ ] Other Change(s) Yes [ ] No [ X ] Appraisal Summary Change in Economic and Financial Analysis Yes [ ] No [ X ] Appraisal Summary Change in Technical Analysis Yes [ ] No [ X ] Appraisal Summary Change in Social Analysis Yes [ X ] No [ ] Appraisal Summary Change in Environmental Analysis Yes [ ] No [ X ] Appraisal Summary Change in Risk Assessment Yes [ ] No [ X ] B. Project Status 1. The project primarily supports implementation of two activities strengthening environmental institutions capacity for remediation (Component 1); and pilot investments in remediation of orphan hazardous waste dump sites (Component 2). 2. As part of the Component 1 activities: (i) three studies (inventory of polluted sites, remediation methodologies and review of regulations and institutions) are being carried out to inform the development of a framework for the establishment of National Program for Remediation of Polluted Sites (NPRPS) and these are in draft stage; (ii) Both the Project States have procured 15 of the 17 laboratory equipment, that has strengthened their analytical ability to monitor hazardous substances; (iii) Environmental Compliance Assistance Center (ECAC) at West Bengal has been established and Business Plans for ECAC in West Bengal and Andhra Pradesh, have been developed; (iv) training programs and international exposure visits have been organized to build capacity of the project implementation agencies on remediation; (v) inventory of Hazardous Waste generation in West Bengal and Andhra Pradesh is completed; and (vi) various sector studies on industrial pollution have been carried out. 3. Component 2 activities (constituting about 60 percent of the project cost) involve piloting remediation activities at four identified sites in the Project States. While detailed remediation plans for all the four sites have been prepared and approved by the Technical Expert Panel (TEP), actual implementation of remediation plans has been delayed due to: (i) multiple reviews required by the TEP to assess the suitability of the Remediation Plans; (ii) unique nature of sub-projects which required careful design of bid documents; (iii) delays due to multiple rounds of bidding; and (iv) administrative uncertainties in the state of Andhra Pradesh for over 15 months, due to the bifurcation of the state (which were beyond the control of the implementing agencies). 4. As per the original design, the project was to prepare remediation plans for the four pilot sub-projects during the first 15 months of implementation. By design, the project was therefore expected to gain momentum only in the third year of implementation (considering 6 months of bidding process after the finalization of remediation plans). This was further delayed due to the factors stated above. Currently, the contract for Kadapa Municipal Disposal Site closure in Andhra Pradesh (US$5 million) is awarded and the works are expected to start soon. The bid process (re-bidding) for Noor Mohammad Kunta (NMK) Lake sub-project (US$6.8 million) in Hyderabad (in erstwhile Andhra Pradesh and now in Telangana State) is expected to be completed in June 2016 and for Dhapa Municipal Disposal Site Closure (US$9.5 million) sub-project in Kolkata, West Bengal is in advanced stage and is expected to conclude in May, To date, the project has disbursed about percent of the total financing and the PDO and the Implementation Progress are rated as 'Moderately Unsatisfactory' and 'Unsatisfactory', respectively. So far, contracts of about US$12 million (about 25% of financing) comprising US$5 million under Component 1 and US$7 million under Component 2 have been committed. Considering the slow progress in project 3

7 implementation and to account for the fluctuation of Indian Rupee against US Dollar, SDR 6.5 million (US$10 million equivalent) were canceled in December 2013 from the IDA credit. 6. Despite the delays, the PDO remains relevant and the Ministry of Environment, Forest and Climate Change (MoEF&CC) has taken steps to improve project performance. These steps include strengthening its Project Monitoring Team by recruiting technical consultants and regular monitoring of the project progress. In 2014, considering the importance of remediation of polluted sites and based on the experience gained so far from the project, MoEF&CC through the Central Pollution Control Board (CPCB), initiated preparation of remediation plans for 10 other polluted sites in the country and issued draft guidelines on 'Liabilities for Environmental Damages' in These steps emphasize the interest of the Government of India (GOI) in addressing the issues related to polluted sites in the country and upholds the relevance of the project. 7. In light of the above, in March 2015 GOI requested a two year extension and restructuring of the project. The Bank team worked closely with MoEF&CC and Project States and agreed to a two stage restructuring. In the first stage, the project closing date was extended to September 15, 2017, and agreements were reached on: (i) a detailed action plan for activities that are likely to be completed during the extended project period; (ii) dropping activities such as the Hooghly Remediation sub-project in West Bengal (which cannot be completed in the project period), ground water treatment sub-component of NMK Lake in Hyderabad, support to the Environmental Compliance Assistance Centers and sector studies on industrial pollution (which are not essential to the achievement of the PDO); (iii) a schedule for completion of studies and next steps (including other relevant studies such as development of soil standards and Chemicals Management Plans) for the finalization of framework that helps in the establishment of National Policy on Remediation of Polluted Sites (NPRPS); and (iv) strengthening the capacity of the Project Management Unit (PMU) at MoEF&CC to monitor the progress of the project activities and future remediation program. 8. Based on these agreements, it is expected that: (i) the Kadapa Sub-Project (US$5 million) in Andhra Pradesh is likely to be completed in December, 2016; (ii) the Dhapa Sub-Project (US$9.5 million) in West Bengal is likely to be completed in August, 2017; (iii) the NMK Lake Sub-Project (two packages of US$6.8 million and another package of US$3.8 million) is likely to be completed in June, 2017; and (iv) the framework for the establishment of NPRPS is likely to be finalized by April, C. Proposed Changes Change in Implementing Agency Please describe the change and explain the reason for change: Andhra Pradesh (one of the participating states) was bifurcated and a new state of Telangana was formed in June, Some of the project activities including the NMK Lake Remediation sub-project is located in Hyderabad, which is the capital of Telangana State. Hence, Telangana State is proposed to be included in the project and Telangana State Pollution Control Board (TSPCB), is being included as a new implementing agency. Implementing Agency Name Type Action Andhra Pradesh Pollution Control Board Implementing Agency No Change West Bengal Pollution Control Board Implementing Agency No Change Telangana State Pollution Control Board Implementing Agency Project Development Objectives Development Objectives/Results New 4

8 Original PDO The objectives of the Project are: (i) to build tangible human and technical capacity in selected state pollution control agencies of the Borrower for undertaking environmentally sound remediation of polluted sites; and (ii) to support the development of a policy, institutional and methodological framework for the Borrower to establish a National Program for Rehabilitation of Polluted Sites. Change in Project's Development Objectives Explanation The original PDO is long with focus on activities (such as 'to build') and includes outcomes that are inherently difficult to assess (such as 'tangible', 'environmentally sound' and Rehabilitation ). Revisions are made to drop these terms and have a clearer and outcome focused PDO. Proposed New PDO To strengthen the capacity of selected state pollution control agencies in the remediation of polluted sites and to support development of a framework to establish a national program for the remediation of polluted sites. Change in Results Framework Explanation: The PDO remains relevant and the GoI recognizes the contribution of the project, towards remediation of polluted sites in India. A few discrepancies exist in the Results Framework included in Annex 3 of the Project Appraisal Document (PAD) (and also within the PAD in the section on arrangements for results monitoring and intermediate results indicators in pages 50 to 53). These discrepancies are proposed to be addressed and the results framework streamlined and revised to adequately reflect the project outcomes and align it with the PDO. The changes to the results framework (PDO and Intermediate Indicators) are summarized below and the revised results framework is presented in Annex 1 of the restructuring paper. Original Indicator Revision Explanation PDO Indicator Clean up/remediation technologies have been piloted at orphan hazardous waste sites and municipal dumpsites in selected states and a network of state PCBs established by MOEF for knowledge dissemination and project based training Dropped This Indicator is proposed to be dropped, as the core sector indicator 'Contaminated Land Managed or Dump Sites Managed Under the Project (ha)' already in the results framework adequately reflects the above original PDO Indicator. This core indicator however is currently included as intermediate indicator (in the operations portal) and is being modified as PDO indicator in the revised results framework. Guidelines and standards for Revised: Capacity of technical staff This indicator is proposed to 5

9 remediation developed and supervisory capacity of technical staff at environment agencies to implement remediation plans and monitor environmental conditions strengthened. of the participating agencies strengthened to prepare, implement and monitor remediation plans. be revised as it includes an outcome and several outputs. It is proposed to be revised by retaining an outcome indicator and deleting output dimensions, which after revisions (to intermediate indicator in the portal: Guidelines and standards for remediation developed and adopted by participating states and Ministry of Environment) is included as Intermediate Indicator: National Guidelines for the remediation of polluted sites developed. An Environmental Compliance Assistance Center has been established and fully functional by end of year two in WB and by end of year four in AP Water quality and soil characteristics at the pilot sites comply with specified standards and mechanisms established to monitor in the long term. Achievement of the revised PDO indicator will be measured through an independent assessment Dropped An Environmental Compliance Assistance Center (ECAC) has been established (through project financing) and is functional in West Bengal since Business plans for ECACs in AP and WB were also prepared. Based on a review of these plans, MoEF & CC does not intend to continue supporting these centers as these are not essential to achieving the PDO. Hence the indicator is being dropped. Dropped Indicator is not an outcome, but is an output. Intermediate Indicator: Post-remediation monitoring system with appropriate infrastructure and agreed indicators established at three remediated sites by end of year 4. in the PAD includes monitoring water quality and soil 6

10 Supporting the NPRPS by developing a methodological framework for inventorying polluted sites, establishing remediation procedures and solutions and engaging multiple stakeholders in the implementation, including cost recovery mechanisms. Revised: Framework for the establishment of NPRPS comprising inventory of polluted sites, remediation methodologies and policy and regulatory reviews developed. Revised: Contaminated Land Managed or dump sites closed under the project (ha). New: Direct project beneficiaries (number) of which female (percent). characteristics. This indicator, is being included in the results framework in place of the above indicator. Indicator has been corrected to reflect the PDO, which is to establish a framework for NPRPS. The indicator has been moved from Intermediate Indicator in the portal, to PDO Indicator as this in an applicable core sector indicator for pollution management and environmental health. Furthermore, it captures the capacity of the selected states in remediation of polluted sites/hazardous dump sites. The indicator has been added, as this is a core indicator applicable to the project. Intermediate Indicators Component 1: Strengthening of Environmental Institutions: Building Capacity for addressing pollution remediation Guidelines and standards for remediation developed and adopted by participating states and Ministry of Environment. Revised: National guidelines for the remediation of polluted sites developed. The indicator is also partly included as PDO indicator (ii) in the PAD, which is being appropriately modified. Analysis of existing environmental legislation related to liability and international experience on Revised: Policy options for remediation of polluted sites developed based on a review of Development of standards is a long term process and goes beyond the project implementation period. Hence, the indicator is proposed to be modified to so it is limited to the development of guidelines. Indicator sharpened and is being included in the results framework. 7

11 remediation of contaminated sites and formulation of policy framework. Development of procedure for remediation orders for orphan and non-orphan sites which pose urgent risk to human health and environment. Technical staff of State PCBs trained to supervise the implementation of remediation plans and monitor area environmental conditions. Good practice notes on site rehabilitation disseminated to the SPCB network; conduct knowledge dissemination events sponsored by the MOEF in selected states. The extent of indiscriminate disposal of hazardous wastes in the pilot states drastically diminished and verified through data collected by State PCBs and verified through an end of project beneficiary survey. Community monitoring implemented in two states. existing legislations and international experiences. Revised: Methodologies for remediation of polluted sites in India developed. Dropped Dropped Dropped Dropped Indicator sharpened by replacing words procedure, orphan and non-orphan sites and urgent risk and is being included in the results framework. This indicator is similar to PDO Indicator Capacity of technical staff of the participating agencies strengthened to prepare, implement and monitor remediation plans, hence being dropped. The indicator reflects an activity and not an output. Hence being dropped. Activities related to this indicator have not been included in the project, hence being dropped. Activities related to this indicator have not been included in the project, hence being dropped GAAP Milestones are met. Dropped GAAP is neither an activity nor an output of the project, but a monitoring tool. Hence being dropped. New: Inventory of Polluted Sites in India developed. New: Number of parameters that Included to monitor and report one of the three important outputs that support achievement of PDO indicator Framework for the establishment of NPRPS comprising inventory of polluted sites, remediation methodologies, and policy and Regulatory reviews developed. The indicator has been added 8

12 can be analyzed by the laboratories of Telangana and West Bengal Pollution Control Boards, increased. New: Online network of State Pollution Control Boards for remediation established. to reflect capacity in respect of laboratory equipment and monitor hazardous waste/substances. The indicator currently is a part of PDO indicator Clean up/remediation technologies have been piloted at orphan hazardous waste sites and municipal dumpsites in selected states and a network of state PCBs established by MOEF for knowledge dissemination and project based training in the PAD and current intermediate indicator Establish knowledge dissemination network for SPCBs in the portal. This new indicator has been added to sharpen and make the two indicators more specific. Component 2: Investments in rehabilitation of orphan hazardous waste sites and municipal dumpsites Area-based remediation plans Revised: Remediation plans This indicator has been demonstrating effective prepared based on risk based sharpened and updated to technologies for pollution approach and ready for include the new state of reduction under implementation in implementation in all the three Telangana participating states. WB and AP. Pollution hazards reduced to acceptable level using remediation /containment technologies at two pilot HW sites. Measurable improvements of the environmental conditions around old dumpsites in two states monitored by SPCBs. Dropped Dropped The indicator is a part of the already included indicator Post-remediation monitoring system with appropriate infrastructure and approved indicators established for all the three pilot sites by the completion of remediation works, hence being dropped. The indicator is a part of indicator Post-remediation monitoring system with appropriate infrastructure and approved indicators established for all the three pilot sites by the completion 9

13 Post-remediation monitoring system with appropriate infrastructure and agreed indicators established at three remediated sites by end of year 4. Environment and Social assessment acceptable to the Bank carried out and disclosed for pilot projects implemented in year one and two prior to negotiations. Involvement of local authorities and neighboring communities and level of support to rehabilitation of sites. State PIUs maintains adequate staff with expertise and skills throughout project life and follow up the provisions of POM. State PIUs participate in supervision missions. Revised: Post-remediation monitoring system with appropriate infrastructure and approved indicators established for all the three pilot sites by the completion of remediation works. Dropped Dropped Dropped Dropped New: People with reduced direct exposure to pollution from sites remediated by the project of remediation works, hence being dropped. The indicator has been updated to reflect the current status of the project by dropping the word end of year 4 and adding the word approved instead of agreed. Environmental and Social Assessments are not project outputs, but safeguard actions. Hence being dropped. The indicator reflects an activity, but not an output. Hence being dropped. The indicator is not an output, but a project monitoring indicator, hence being dropped. The indicator is not an output, but a project monitoring indicator, hence being dropped. The indicator has been added as the reduced exposure to pollution by people is an important impact of the project. Change in Safeguard Policies Triggered Explanation: Compliance The detailed Environmental and Social Assessment (ESA) carried out for the Municipal Solid Waste sub-project in Kadapa, Andhra Pradesh, brought out the fact that the proposed closure and containment of the waste disposal site will impact livelihoods of rag picker communities. These rag pickers belong to the Scheduled Tribes (ST) category as classified by the Government of Andhra Pradesh and can be categorized as Indigenous People as per OP Hence, OP 4.10 is being triggered. The ESA has followed the due process of OP 4.10 including conducting Free, Prior and Informed Consultations (FPIC) with the indigenous people and has developed an acceptable livelihood support program for the affected families dependent on the landfill site. The ESA and associated Environmental and Social Management Plan has been reviewed and cleared by the Regional Safeguards Advisor and the document has been disclosed locally and also at Bank's Infoshop on December 4,

14 Current and Proposed Safeguards Policies Triggered: Current Proposed Environmental Assessment (OP) (BP 4.01) Yes Yes Natural Habitats (OP) (BP 4.04) Yes Yes Forests (OP) (BP 4.36) No No Pest Management (OP 4.09) No No Physical Cultural Resources (OP) (BP 4.11) Yes Yes Indigenous Peoples (OP) (BP 4.10) No Yes Involuntary Resettlement (OP) (BP 4.12) Yes Yes Safety of Dams (OP) (BP 4.37) No No Projects on International Waterways (OP) (BP 7.50) No No Projects in Disputed Areas (OP) (BP 7.60) No No Change in Legal Covenants Explanation: Safeguard policy, OP 4.10: Indigenous Peoples, is being triggered due to the anticipated livelihood impacts on the Scheduled Tribes community identified by the ESA carried out for Kadapa Municipal Solid Waste sub-project in the state of Andhra Pradesh. As a result, Section I.C of Andhra Pradesh Project Agreement is being amended as " The Project State shall carry out its Respective Part of the Project in accordance with the Environmental Management Plan and the Social Management Plan, including the provisions on resettlement, indigenous peoples, and income restoration support, for the respective Project sites. Ln/Cr/T F IDA IDA Finance Agreement Reference Description of Covenant Finance Agreement :- Description :Establish and maintain a Project Oversight Committee throughout the period of project implementation, which shall be chaired by the Secretary MOEF Frequency :Yearly Finance Agreement :- Description :Designate and maintain throughout the period of project implementation, a Project Director, who shall be responsible for the effective and timely coordination and implementation of project Frequency Date Due Status Complied with Complied with Recurrent Frequen cy Action No Change No Change 11

15 :Monthly IDA Finance Agreement :- Description :Ensure that the Project activities are consistent with the POM Frequency :Monthly Complied with No Change IDA Finance Agreement :- Description :iv).ensure that the Project Director shall have adequate decision-making authority required for the effective, efficient and timely implementation of project activities. Frequency :Monthly Complied with No Change IDA Andhra Pradesh Project Agreement: Description: Carry out its Respective Part of the Project in accordance with the Environmental Management Plan and the Social Management Plan, including the provisions on resettlement, indigenous peoples, and income restoration support, for the respective Project sites. Frequency: Continuous Not yet due Continuo us New Cancellations Explanation: Financing Based on the decision of Project Oversight Committee (POC) in its meeting on September 15, 2015, it is proposed to drop the Hooghly Pilot sub-project, as it cannot be implemented during the project period. As a result, in consultation with the borrower and after accounting actual remediation costs of the sub-project and currency fluctuation, US$10.50 million are proposed to be canceled from the loan account through this restructuring. Ln/Cr/TF Status IBRD Effectiv e Curren cy Current Amount (in currency) Cancelled Amount (in currency) Proposed Amount (in currency) USD 25,210, ,500, ,710, IDA Effectiv USD 28,974, ,974,

16 Change to Financing Plan Explanation: e The financing plan is being revised, due to the cancellation of US$10.50 million from the loan account. Source(s) At Approval Current (from AUS) Proposed BORR 11,240, ,240, ,600, IBRD 25,210, ,210, ,710, IDA 38,940, ,974, ,974, SUBB Reallocations Total 75,390, ,424, ,284, Explanation: US$10.50 million, IBRD allocation is proposed to be canceled to account for the savings due to the dropping of Hooghly Remediation Pilot in West Bengal, currency fluctuation and variation in costs for other sub-projects. Ln/Cr/TF IDA Currency XDR IBRD USD Disbursement Estimates Change in Disbursement Estimates Explanation: Current Category of Expenditure GDS,WRKS,CS,TRNG, WS,IOC - PART 1 GDS,WRKS,CS,TRNG, WS,IOC - PART 2 GDS,WRKS,CS,TRNG, WS,IOC - PART 3 Allocation Disbursement % (Type Total) Current Proposed Current Proposed 7,008, ,008, ,763, ,763, ,156, ,156, PPF REFINANCING 277, , Designated Account Designated Account GDS,WRKS,CS,TRNG, WS,IOC - PART 2 Total: 19,206, ,206, ,146, ,646, FRONT END FEE 63, , Total: 25,210, ,710, The disbursement estimates are being updated to reflect the revised financing plan and anticipated disbursements in the extended closing period up to September 15, The revised estimates are as below. These will be updated in the portal, after the completion of restructuring process. 13

17 Fiscal Year Current (USD) Proposed (USD) ,608, ,608, , , ,771, ,771, , , , , ,000, ,000, ,000, ,000, ,780, ,780, Change to Components and Cost Total 43,695, ,695, Components Explanation: The component costs are being revised as a result of the cancellation of approximately SDR 6.5 (US$10 million equivalent) from the IDA Credit account in December 2013 and of the proposed cancellation of US$10.50 million from the IBRD Loan account through current restructuring. The revision is also required because of the associated reduction in the Borrower s contribution to the project. Current Component Name Strengthening of Environmental Institutions: Building capacity for addressing pollution remediation Investments in Priority Remediation and Environmental Improvements: Rehabilitation of orphan hazardous waste sites and municipal dumpsites Proposed Component Name Current Cost (US$M) Proposed Cost (US$M) Action Revised Revised Project Management Revised Total: Change in Institutional Arrangements Explanation: Other Change(s) Due to the bifurcation of Andhra Pradesh State and since NMK Lake Remediation sub-project is located in the new state of Telangana, Telangana State Pollution Control Board (TSPCB) is being included as the new 14

18 implementing agency in the project. Following the requirements of the project legal agreements, TSPCB has established a Project Implementation Unit (PIU), with the Member Secretary as Project Director, an Executive Engineer as the Head of the PIU and staffed with technical, financial management and social development specialists in the team. The PIU staff are familiar with the project activities (as they were part of the PIU team of Andhra Pradesh, prior to bifurcation) and other implementation issues. In addition, the Government of Telangana (GOT), has also constituted a Project Steering Committee (PSC) with Special Chief Secretary, Environment as Chairman, to oversee the implementation of project activities. Members of PSC include Principal Secretaries of Finance, Industries and Municipal Administration Departments and other key stake holder agencies. The PIU will maintain financial management system of the project and ensure compliance with the obligations of the project agreement. These will be similar to the financial management arrangements which are being followed in the other project states of Andhra Pradesh and West Bengal and the Financial Management (FM) staff of Telangana PIU are familiar with these systems. The annual budget for project activities implemented by TSPCB will be prepared by PIU on the basis of procurement and implementation work plans and it will be endorsed by MoEF&CC. At the GOI level, the budget of TSPCB for central share of 85percent will be provided by MoEF&CC under a separate budget line for Externally Aided Projects. At state level, budget provision for the state share of 15 percent will be provided by State of Telangana through TSPCB. It is agreed that TSPCB will open a separate bank account and it will be used exclusively for receipt of funds by MoEF&CC and State Government and payment for Project activities. The accounting and payment functions will be centralized at PIU. An off the shelf accounting system will be used for project accounting and financial reporting. The financial management wing of TSPCB is presently headed by Chief Accounts Officer (CAO) and s/he will provide requisite oversight and support for this project. Additionally, an accounts officer and accountant will be deployed at the PIU for carrying out accounting functions. The formats of Interim Financial Reports (IFR) are agreed with the PIU and these will be submitted by TSPCB to MoEF&CC within 30 days from the end of each calendar quarter. The IFR will provide detailed financial information on the sources and application of funds as per disbursement categories and project components. The MoEF&CC will submit one consolidated IFR reporting expenditures incurred by MoEF&CC, Telangana State Pollution Control Board (TSPCB), Andhra Pradesh Pollution Control Board (APPCB) and West Bengal Pollution Control Board (WBPCB), to the World Bank through office of Controller of Audit and Accounts (CAAA) within 45 days from the end of each calendar quarter. The IFR will form the basis of disbursement into the Designated Account. The internal audit for the respective parts of the project will be carried out by chartered accounting firms appointed by the respective state agencies, including TSPCB. The annual external audit of the project will be conducted by a firm of Chartered Accountants appointed by the respective implementing agencies including TSPCB which are acceptable to the Bank and audit report will be provided within 9 months from end of each financial year, i.e. December 31. In case of Andhra Pradesh and West Bengal, Section II, B (e) of the Project Agreement is being amended to reflect the change in requirement of submission of annual audit report to MoEF&CC from 4 months to 7 months after the end of each financial year. The current implementing agencies of the project, MoEF&CC, APPCB and WBPCB have submitted acceptable audit reports for the financial year and there are no pending audit reports for the project. The financial management risk of the implementing agency is Moderate. The financial management arrangements proposed under the project will satisfy fiduciary requirements of OP/BP TSPCB, being the new implementing agency has prepared and adopted an 'Operations Manual for the Project', which is acceptable to the Bank. The 'Operations Manual' of the existing implementing agencies still remains relevant to the project activities. 15

19 Change in Implementation Schedule Explanation: Based on the request of GOI, the closing date of the project was extended to September 15, 2017 in August, The implementation of project activities is revised accordingly to reflect the extended project period. Appraisal Summary Change in Social Analysis Explanation: Appraisal Summary The project currently triggers safeguard policies on Environmental Assessment (OP 4.01), Involuntary Resettlement (OP 4.12) and Cultural Property (OP 4.11). As required by these policies, the Borrower had prepared an Environmental and Social Assessment (ESA) including Environmental and Social Management Framework (ESMF) and Environmental and Social management Plan (ESMP) for the respective four pilot sites. This ESA was reviewed, approved and disclosed in-country and at the World Bank Infoshop on November 28, These safeguard instruments were required to be updated based on the detailed remediation plans during implementation phase. Accordingly, detailed ESAs were carried out during project implementation phase and ESMPs for each sub-project are being prepared. The ESMP for Kadapa, one of the sub-project sites has already been prepared and disclosed locally and at the Infoshop on. Updated ESMPs for the other the two sub-projects are under advanced stages of preparation. These ESMPs after review and approval will also be disclosed locally and at the Bank s Infoshop. While no physical displacement needs were identified during detailed ESA studies, loss of income to the rag-picking and pig rearing families due to their discontinued waste recycling activities in and around Kadapa and NMK Lake sub-project sites were confirmed. However, no project affected people were found solely dependent on the Dhapa sub-project site, proposed for remediation, as the families are deriving their income from the other close by active dump sites. No land acquisition is expected under the project; however, the project has triggered the policy on involuntary resettlement due to the loss of income streams interrupted by project activities and which need to be restored. Rag-pickers on the Kadapa and NMK Lake sub-project sites require income restoration as well as rehabilitation (including training in safer methods of rag picking and training to acquire alternative livelihoods). Draft ESMPs prepared for the respective sub-projects include Livelihood Management Plan for all these affected families and have been prepared in consultation with them and other stakeholders. Awareness programs on health and safety and community development works for the rag pickers, pig rearers, residents around the pilot sites has also been proposed for all three sites. The detailed environmental and social assessment carried out for Kadapa the Municipal Solid Waste dump site, brought out the fact that the rag-pickers and pig rearing families dependent on the proposed closure and containment of the waste disposal site belong to the Scheduled Tribes (ST) category as classified by the Government of Andhra Pradesh and can be categorized as Indigenous People as per OP It is therefore, proposed to trigger OP 4.10 and implement livelihood support programs for these communities, as recommended by the ESMP. The ESA and ESMP has followed the due process of OP 4.10 including conducting Free, Prior and Informed Consultations (FPIC) with the indigenous people and has developed an acceptable livelihood support program for the affected families dependent on the landfill site. The contractors undertaking the closure and containment of Kadapa dump site, will implement the environment mitigation measures, a Non-governmental Organization ( NGO) hired for the sub-project will implement the approved social mitigation measures including the livelihood support program and the 16

20 consulting consortium hired for the supervision of the sub-project execution will also supervise the implementation of the ESMP. APPCB and Kadapa Municipal Corporation (KMC) will monitor and ensure satisfactory implementation of the ESMP. In addition, the monitoring of activities and results during and after the dumpsite closure will be carried out by APPCB and KMC. Similar safeguard implementation arrangements will be followed for the other two sub-projects to be implemented by the project. 17

21 Project Name: Team Leader(s) : Product Line: Annex 1: Revised Results Framework INDIA: CAPACITY BUILDING FOR INDUSTRIAL POLLUTION MANAGEMENT PROJECT Table 1: Description of Revisions India - Capacity Building for Industrial Pollution Management Project Restructuring Status: DRAFT (P091031) Stage: Harinath Sesha Appalarajugari IBRD/IDA Requesting Unit: Responsible Unit: Country: India Approval FY: 2010 Region: SOUTH ASIA Project Development Objectives Original Project Development Objective: Lending Instrument: SACIN Created by: Sarita Rana on 30-Dec-2015 GEN06 Modified by: Harinath Sesha Appalarajugari on 29-Mar-2016 Specific Investment Loan The objectives of the Project are: (i) to build tangible human and technical capacity in selected state pollution control agencies of the Borrower for undertaking environmentally sound remediation of polluted sites; and (ii) to support the development of a policy, institutional and methodological framework for the Borrower to establish a National Program for Rehabilitation of Polluted Sites. Proposed Project Development Objective (from Restructuring Paper): To strengthen the capacity of selected state pollution control agencies in the remediation of polluted sites and to support development of a framework to establish a national program for the remediation of polluted sites. Results Core sector indicators are considered: Yes Results reporting level: Project Level Project Development Objective Indicators Status Indicator Name Core Unit of Measure Baseline Actual(Current) End Target 18

22 Marked for Deletion Revised Clean up/remediation technologies have been piloted at orphan hazardous waste sites and municipal dumpsites in selected states and a network of state PCBs established by MOEF for knowledge dissemination and project based training Guidelines and standards for remediation developed and supervisory capacity of technical staff at environment agencies to implement remediation plans and monitor environmental conditions strengthened. Capacity of technical staff of the participating agencies strengthened to prepare, implement and monitor remediation plans. Text Value No Remediation Plans Ready for implementation Date 03-Jun-2010 Text Value No Capacity for preparation of remediation plans developed Date 03-Jun-2010 Text Value Preparation capacity developed 3 - Implementation and monitoring capacity developed Date 03-Jun Dec Sep-2017 Assessed based on three aspects of capacity. 1. Preparation capacity 2. Implementation capacity 3. Implementation and monitoring capacity Marked for An Environmental Compliance Text Value Reactivate ECAC is Functional ECAC 19

23 Deletion Marked for Deletion Revised Assistance Center has been established and fully functional by end of year two in WB and by end of year four in AP Water quality and soil characteristics at the pilot sites comply with specified standards and mechanisms established to monitor in the long term. Supporting the NPRPS by developing a methodological framework for inventorying polluted sites, establishing remediation procedures and ECAC in WB; create ECAC in AP established and is functioning in West Bengal, from Business plans for ECAC has also been prepared for Andhra Pradesh and West Bengal. in place; Training completed for technical staff of SPCBs Dissemination of protocols under NPRPS undertaken at workshop with state PCBs Date 30-Nov Sep-2015 Text Value Nil Date 03-Jun-2010 Text Value nil Draft Final Reports are finalized based on stake holder consultations and Based on the business plans developed for ECACs, MoEF&CC decided not to continue supporting these centers, as these are not essential for achieving the PDO. Hence being dropped Submission of a NPRPS to Planning commission 20

24 New solutions and engaging multiple stakeholders in the implementation, including cost recovery mechanisms. Framework for the establishment of NPRPS comprising inventory of polluted sites, remediation methodologies and policy and regulatory reviews developed Contaminated land managed or dump sites closed under the project final reports are being finalized based on comments from POC and TEP Date 30-Nov Sep-2015 Text Value No Draft Prepared Yes - Final Framework Developed Date 03-Jun Dec Sep-2017 Hectare(Ha) Value Three basic studies on Inventory, Methodological and Policy & Institutional studies are being prepared. Date 03-Jun Dec Sep-2017 Pilot sub-projects in Andhra Pradesh (4.2 ha) and West Bengal (12.10 ha) New Direct project beneficiaries Number Value Date 03-Jun Dec Sep-2017 New Female beneficiaries Percentage Value Sub Type 21

25 Supplemental Intermediate Results Indicators Status Indicator Name Core Unit of Measure Baseline Actual(Current) End Target New Inventory of Polluted Sites in India developed Text Value No Draft inventory ready Yes - Inventory developed Date 03-Jun Dec Sep-2017 Inventory study by MoEF&CC. Inventory is in draft stage and will be finalized by April, 2016 Marked for Deletion An Environmental Compliance Assistance Center has been established and fully functional by end of year two in WB and by end of year four in AP Text Value Reactivate ECAC in WB; create ECAC in AP ECAC is established and is functioning in West Bengal, from Business plans for ECAC has also been prepared for Andhra Pradesh and West Bengal. Functional ECAC in place; Training completed for technical staff of SPCBs Dissemination of protocols under NPRPS undertaken at workshop with state PCBs Date 30-Nov Sep-2015 Based on the business plans developed for 22

26 Revised Development of procedure for remediation orders for orphan and non-orphan sites which pose urgent risk to human health and environment. Methodologies for remediation of polluted Sites in India developed Text Value Nil Draft Procedures prepared Date 03-Jun-2010 Text Value No Draft Methodologies ready ECACs, MoEF&CC decided not to continue supporting these centers, as these are not essential for achieving the PDO. Hence being dropped Yes - Methodologies developed part of the remediation framework Date 03-Jun Dec Sep-2017 Methodology study by MoEF&CC. Methodology is in draft stage and will be finalized during remaining period of the project. Revised Guidelines and standards for remediation developed and Text Value nil Guidelines are being developed Continued compliance of 23

27 adopted by participating states and Ministry of Environment National guidelines for the remediation of polluted sites developed by the remediation consultants as part of the remedial plans for each pilot remediated pilot sites with standards specified for pilot sites Date 30-Nov Sep-2015 Text Value nil Draft Guidelines ready Guidelines integrated in the remediation framework Date 03-Jun Dec Sep-2017 Output as part of the Methodology study by MoEF&CC. Marked for Deletion Marked for Deletion Technical staff of State PCBs trained to supervise the implementation of remediation plans and monitor area environmental conditions. Good practice notes on site rehabilitation disseminated to the SPCB network; conduct knowledge dissemination events sponsored by the MOEF Number Value Nil Date 03-Jun-2010 Text Value Nil Date 03-Jun-2010 Guidelines are in draft stage and will be finalized during remaining period of the project. 24

28 Marked for Deletion Marked for Deletion Marked for Deletion Marked for Deletion Revised in selected states. The extent of indiscriminate disposal of hazardous wastes in the pilot states drastically diminished and verified through data collected by State PCBs and verified through an end of project beneficiary survey. Community monitoring implemented in two states. Text Value Nil Date Text Value Nil Date GAAP Milestones are met. Text Value Nil Contaminated land managed or dump sites closed under the project Analysis of existing environmental legislation related to liability and international experience on remediation of contaminated sites and formulation of policy framework. Policy options for remediation of polluted sites developed based on a review of existing legislations and international Date 03-Jun Jun Jun-2010 Hectare(Ha) Value Date 30-Nov Sep-2015 Text Value Nil Date 03-Jun-2010 Text Value Nil First draft of policy options ready Included as PDO Indicator Policy options report finalized Date 03-Jun Dec Sep