Loan Number: 2419 India: Mundra Ultra Mega Power Project Implementation of Remedial Action Plan Eleventh Quarterly Progress Report March 2018

Transcription

1 Loan Number: 2419 India: Mundra Ultra Mega Power Project Implementation of Remedial Action Plan Eleventh Quarterly Progress Report March 2018 Note: all Scheduled dates (unless otherwise stated) are for the completion of the relevant action by the end of the specified month CRP Findings Action Plan Scheduled date Progress Report 1. Action to address ADB s noncompliance in relation to CRP s findings on disclosure of information and conduct of consultations 2. Action to address ADB s noncompliance in relation to CRP s findings on thermal discharge from the outflow channel and loss of livelihood of fisherfolk (a) Inclusive and transparent stakeholder consultations will be carried out to establish and address the impacts of the Project in relation to (i) thermal discharge into the outfall channel; (ii) livelihood of foot fisherfolk; (iii) access restrictions; and (iv) ambient air quality, as detailed in this Action Plan. As part of this consultative process, the affected foot fisherfolk will be identified; information on their livelihoods will be collected and impacts will be assessed; and measures to address livelihood impacts will be established in a Livelihood Improvement Plan, as detailed in this Action Plan. The National Institute of Oceanography ( NIO ) has been engaged by CGPL and is carrying out field observations on the actual impacts of thermal discharge from the Project in Modhva Creek and adjoining coastal areas; this will involve validating the thermal modelling previously carried out by HR Wallingford during the environmental due diligence (prior to Project approval). NIO will complete this model conformity study. Findings of the draft NIO report to be reviewed by ADB (engaging external specialist marine consultant). ADB will submit to the CRP, as soon as available, for review and comment the draft study prepared by NIO. See relevant dates below October 2015 See relevant progress below. (i) Thermal discharge into the outfall channel See section (2) below; (ii) Livelihood of foot fisherfolk See section (2) below; (iii) Access restrictions See section (4) below (iv) Ambient air quality See section (5) below (a) CGPL submitted to ADB in February 2016, the Draft Report of Model Conformity Study, prepared by NIO. ADB shared this report with CRP upon receipt from CGPL in February ADB also engaged a marine expert to review this report. The marine consultant to assist ADB in the review of the NIO study completed the site visit in May 2016 and submitted his draft review report to ADB in August ADB received observations on NIO report from CRP in August Following this, a 1

2 meeting between technical experts from CRP and ADB was held in Mumbai and it was decided that additional monitoring will be required to arrive at (i) the extent of zone of elevated temperature as a result of cooling water discharge, and (ii) ecological impacts on near coast marine environment. The scope of additional thermal and ecological monitoring has been developed through consultations with CRP technical experts and integrating their inputs. ADB submitted to CRP a technical note in November 2016, Proposed Thermal and Ecological Monitoring in Coastal Waters fronting the CGPL Plant detailing the scope of additional monitoring to CRP. ADB shared with CGPL in February 2017, the proposed scope of additional thermal and ecological monitoring, for review and comments. CGPL in March 2017 communicated to ADB, the need for another round of technical discussions between experts of NIO, CRP and ADB, prior to initiation of any additional monitoring on ground. A summary of the technical discussions between NIO, CGPL, ADB and CRP consultants in April 2017, is as follows: (i) NIO defended its methodology adopted for the model conformity study and stressed that remodeling of the thermal discharge impacts factoring the comments from CRP/ADB is unlikely to lead to different conclusions, and (ii) CGPL 2

3 (b) Summary of the NIO report to be translated into the local language and shared with interested stakeholders (including fisherfolk) to obtain and record their views. (c) ADB will review the results of the study, including the advice of its specialist marine consultant and, in consultation with CGPL, will determine if any further February 2016 March 2016 reiterated its reservation to carry out any additional monitoring, given that they already carry out thermal monitoring along the outfall channel since the commencement of plant operations, and the monitoring results inform that the study area is stable during all seasons and there is no sign of contamination or stress on the marine environment. Given the above constraints in carrying out the additional thermal and biological monitoring, ADB through its internal resources initiated alternative approaches to assess the spatial extent of thermal discharge impacts, including the use of satellite imageries to assess temperature impacts of the coastal waters. ADB shared the assessments with CRP for review and comments in October CRP comments on the assessment were received in November 2017 and will be shared with CGPL. (b) The summary of the NIO report in Gujarati has been prepared and key findings of the report shared with the stakeholders in April Findings of additional studies envisaged under item 2(a) and the conclusions will be translated and shared with the stakeholders. (c) Based on the findings of additional monitoring under item (a) above, further course of action will be decided along with CGPL and CRP. 3

4 action is appropriate. ADB shall consult with the CRP on any further action. (d) The results of the automatic temperature monitoring device at the outflow channel to be made accessible to the public. (e) ADB to advise CGPL appropriately on ongoing qualitative studies (i) to identify the fisherfolk who have practiced foot fishing on a regular basis in the creek and coastal area adjoining the outflow channel; and (ii) to assess any livelihood impacts on such identified foot fisherfolk for the purpose of preparing a Livelihood Improvement Plan in consultation with the identified foot fisherfolk (with disclosure of the plan in the local language). ADB shall provide the TOR for the qualitative studies and the results thereof to the CRP for its review and comment. ADB to provide the draft Livelihood Improvement Plan to the CRP for its review and comment prior to finalization and implementation. Ongoing October 2015 (d) CGPL has installed automatic temperature sensors in the outfall channel near the outfall weir. The results are displayed at the plant gate and accessible to the public. These results will be discussed with public during consultations on findings on thermal dispersion and ecological impacts of cooling water discharge. (e) CRP, in August 2016, provided comments to ADB on the draft livelihood improvement plan dated March ADB will work together with CGPL to address comments/observations by CRP on the draft livelihood improvement plan. In line with CRP comments, the draft livelihood improvement plan has been revised to incorporate (i) findings of the site visits and observations carried out along the Modhva shoreline to identify any additional foot fisherfolk dependent on foot fishing within the zone of elevated temperature identified in NIO s model conformity study; and (ii) development measures targeting long term livelihood opportunities to the identified foot fisherfolk. CGPL submitted the revised livelihood improvement plan to ADB for review in April 2017, after which ADB provided its observations to CGPL. CGPL, after incorporating ADB s comments, disclosed the livelihood improvement plan on its 4

5 website in May The livelihood improvement plan has been disclosed on ADB website in December The livelihood improvement plan will be updated to reflect the results of the actions envisaged under item 2(a), and implemented. (f) Implementation of Livelihood Improvement Plan for the identified foot fisherfolk. October 2015 July 2018 (f) CGPL has engaged an NGO to support implementation of the measures proposed under the livelihood improvement plan. CGPL initiated the implementation of the livelihood improvement plan in April Summary of the progress till date include: (i) translation of the livelihood improvement plan in Gujarati, (ii) disclosure of the plan to the identified foot fisherfolk and presentation on the implementation of the livelihood plan; (iii) transfer of the budget for to the bank account of the NGO implementing the livelihood plan, (iv) appointment of social coordinator within the NGO, (v) baseline socio-economic information of the identified foot fisherfolk; (vi) 100% disbursement of livelihood support grants through the implementing NGO to each of the 24 identified foot fisherfolk.; and (vii) preparation activities for establishment of shrimp farming activities in Tragadi and Modhva villages, including identification of lands, obtaining 5

6 clearances for establishment of shrimp farms from government departments, and identification of partner agencies in design, construction and operation of the shrimp farms; and (viii) disclosure of the livelihood plan by CGPL on its website. ADB engaged in April 2016, a social development consultant, to support CGPL and its NGO in the implementation of the provisions of the livelihood improvement plan to the 24 identified foot fisherfolk. CGPL communicated to ADB in December 2017 that (i) the land lease process for the two shrimp farms has been delayed due to elections in the state of Gujarat and that the CGPL team will pursue proactively with the Government agencies to obtain the land lease clearance after the election process is completed in December 2017, and (ii) CGPL will expedite the construction activities upon approval of the land lease, targeting operation of the shrimp farm by Q CRP, in its second annual monitoring report dated August 2017, raised concerns on whether the dividends payout to the fishermen from the shrimp farming activity proposed will be sufficient to adequately compensate for the reduction of incomes due to the project. ADB fielded a mission in March 2018 to (i) review the status of implementation of the shrimp farms in Tragadi and 6

7 Modhva villages by CGPL, (ii) visit operational shrimp farm activities in Saurashtra region of Gujarat to understand the operations and the market linkages; and (iii) consult with scientists of Central Marine Fisheries Research Institute (CMFRI), Verawal on the potential for development of shrimp farming in Kutch district, and more specifically in the project villages. Key findings of the ADB mission on each of the three aspects is summarized below: (i) CGPL informed ADB that the approval by the state fisheries department, has been delayed for various reasons, despite the best efforts by CGPL through deployment of a fisheries expert to closely work and liaison with the Government agencies to expedite the approval process. Apart from the Gujarat state elections of December 2017, the decision by the state government of Gujarat to have a larger area developed for shrimp farming has further contributed to the approval delays. ADB was informed that an area of nearly 600 hectares has been identified with potential for development of shrimp farms, and a master mapping has been prepared by Marine Products Export Development Authority (MPEDA). The sites of 10ha for the two shrimp farming locations proposed by CGPL is part of the overall master mapping exercise by MPEDA. CGPL is committed to continue close follow up on the 7

8 approval, after which the construction activities will commence. ADB requested CGPL management for adequate allocation of funds to expedite the infrastructure development and engagement of agency/individuals for technical support in implementation of the facilities. As per the livelihood improvement plan, the 24 identified pagadiyas were to receive benefits from the shrimp farming facilities by the second quarter of While the delay in implementation of the shrimp farm facilities have been for reasons beyond the control of CGPL has resulted in a gap in compensation to the 24 identified pagadiyas for the interim period. This was communicated to CGPL by ADB. (ii) Site visits to existing shrimp farming facilities and discussions with the operators of the facilities confirmed that the technical expertise and market linkages for the sustenance of the shrimp farming facility is readily available in the state of Gujarat. Given the land availability constraints in other parts of the state and the wellestablished infrastructure support systems for the shrimp farm industry in Gujarat, the potential for development of shrimp farms in Kutch was reported to be promising by the various shrimp farm operators consulted. Further, the financial viability of the proposed developments by CGPL in the two 8

9 (g) Review of the Livelihood Improvement Plan to be carried out by an independent expert for ADB. June 2018 (for production of an independent expert report) villages is expected to be high given the (a) high market demand for shrimp both within and outside the country, (b) established port and processing facilities at Verawal for exporting shrimp produced, and (c) good road connectivity from the Kutch district to the port facilities. (iii) Discussions with the CMFRI scientists confirmed that several site visits and investigations on ground have been carried out by the scientis prior to confirming the feasibility of the proposed sites for shrimp farms. Further, CGPL is committed to draw upon the technical expertise of CMFRI to ensure efficient operation of the facilities. Notwithstanding the above assurances, ADB recognizes that the support by CGPL including engagement of a technical support agency towards infrastructure development and operation of the shrimp farm will be critical in the initial phases of development and operation. ADB will work together with CGPL in the process to ensure that the benefits contribute to improved incomes to the residents and in particular the 24 identified pagadiyas. (g) To be produced in June

10 3. Action to address ADB s noncompliance in relation to CRP s findings on sludge treatment and disposal (a) Since this issue was discovered (in December 2013), ADB has engaged with CGPL on environmentally sound ways in which to segregate the iron bearing sludge from the demineralization plant. The options for segregation of sludge and its disposal are currently under technical evaluation. On completion of the technical evaluation of options, ADB will consult with the CRP on the preferred option prior to finalization of preferred option. (b) Implement sludge treatment and disposal measures and discontinue discharging iron-bearing sludge into the sea water via outfall channel. October 2015 December 2015 June 2016 (a) ADB shared with CRP a note prepared by CGPL on options analysis for sludge segregation and management in January None of the options considered by CGPL, other than disposal of iron bearing sludge in the fly ash ponds, was technically and commercially feasible. CGPL in June 2016 shared with ADB an official communication from Gujarat Pollution Control Board (GPCB), advising CGPL not to dispose the iron bearing sludge in the fly ash ponds. ADB submitted its review of options analysis to CRP in September 2016 for further deliberation and advice. In May 2017, CGPL communicated GPCB s views (based on its consultations with GPCB during the Annual Monitoring Mission of CRP) on the sludge treatment and disposal to ADB, that (i) the sludge from the demineralization plant is not hazardous, (ii) the sludge has no chemical toxicity; and (iii) continuation of the present discharge mechanism by CGPL will be in compliance with the national requirements and CGPL is not expected to undertake any additional measures. CRP in its second annual monitoring report considered this action item closed as Gujarat Pollution Control Board (GPCB) confirmed to CRP that disposal of iron bearing sludge into the discharge channel is acceptable in accordance with national environmental legislation and regulations. (b) See (a) above. 10

11 4. Action to address ADB s noncompliance in relation to CRP s findings on access restrictions (a) Subsequent to the CRP findings, ADB investigations indicate that actions taken by CGPL (including identification of and consultations with affected persons and the measures taken to address the impacts of such access restrictions) adequately address the impacts of access restrictions to Tragadi bander. ADB will submit these findings to CRP for their review and comments. August 2015 (a) Revisions to the draft access restrictions report, to address the CRP s comments have been carried out. The revised report has been shared with CRP in March The CRP, in its First Annual Monitoring Report (dated September 2016) to the Board of Directors on the implementation of remedial actions for the project, found the revised report on access restrictions (March 2016) to have adequately addressed its comments. (b) The ADB s findings in relation to access restriction issue will be translated into local language and consultations with the relevant stakeholders held. October 2015 (b) ADB translated the findings in Gujarati and carried out consultations with the relevant stakeholders in April The report on access restrictions has been disclosed on ADB website in December (c) Based on the CRP s review of ADB s findings, if any further action is required, such action will be determined by ADB. ADB, and not CGPL, will be responsible for ensuring the implementation of such action. December 2015 (c) CGPL has confirmed its commitment to (i) undertake maintenance activities required to ensure all-weather access to Tragadi bander, and (ii) ensure continued provision of services to Tragadi bander of an appropriate quality on a regular basis. (d) The surface quality of the access road to Tragadi bander for undisrupted access during the monsoon to be maintained. Regular maintenance for the life of the project (d) ADB will continue to carry out visits to access road to the Tragadi bander and engage with CGPL on continued maintenance of the access road and provision of undisrupted access. ADB was informed by CGPL during the March 2018 mission that the provision of services to the Tragadi 11

12 5. Action to address ADB s noncompliance in relation to CRP s findings on ambient air quality (a) Air quality monitoring (involving 10 monitoring stations at all villages within the Project s airshed) was established in April 2014 and will continue to be carried out for a two year period. March 2016 bander including the supply of potable water, periodic health camps and other community services, as part of CGPL s CSR program, have been suspended since August Site visits and consultations with Tragadi bander residents during the mission confirmed that the services were discontinued since the start of the current fishing season in August ADB is currently pursuing with CGPL management on restoration of the services provided to Tragadi bander. (a) The air quality monitoring has been continued as per the schedule during September December (b) Undertake a study in the villages surrounding the Project to ascertain the extent of health impacts associated with air pollution (PM10 and PM2.5). December 2015 July 2018 (b) The baseline health study has been completed and the draft report has been submitted to CRP for their comments in September CRP shared the comments from their technical expert in December ADB has updated the report to include sections on how to use the data for future comparisons and why coastal fumigation is unlikely to influence the results. Additional comments on the baseline health study was shared by CRP in March 2017, to which ADB provided its response in May The baseline health study has been disclosed on CGPL website in June 2017 and on ADB website in December (c) With respect to particulates, a technical study to be undertaken (to be carried out April 2016 (draft study) (c) A detailed analysis of existing air quality and emission data has been 12

13 by an independent consultant engaged in consultation with ADB) to ascertain the contribution of the Project to ambient PM10 levels within the Project s airshed. (d) Findings of the technical study to be made accessible to interested stakeholders, and technical study to be finalized taking into account their views. A summary of the technical study will be translated into local language and shared with local communities and other stakeholders. ADB will provide the CRP with the terms of references for the study and draft study report for its review and comments. (e) Using the results of the ambient air quality monitoring and the technical study, ADB will undertake a correlation analysis of ambient air quality and stack emissions which will be used to determine, in consultation with CGPL, and relevant stakeholders, any further action in relation to ambient air quality monitoring and any control measures. ADB will submit the correlation analysis to CRP for its review and comment. Any further action in relation to ambient air quality monitoring and any control measures may include additional monitoring, plantation of trees and paving of internal roads within the villages if considered appropriate. June 2016 December 2016 completed by the consultant engaged by ADB. ADB submitted the report to CRP in February CRP shared its comments on the report in March 2017, to which ADB provided its response in May The report recommendations have been discussed and agreed upon with CGPL. (d) The findings of the technical study has been translated in Gujarati. The sharing of the findings of the technical study in the local language with the relevant stakeholders is planned in January The summary of the technical study has been disclosed on ADB website in March (e) The technical study report discussed in 5 (c) above, includes actions required by CGPL in relation to ambient air quality monitoring as well as control measures. While these recommendations had been discussed and agreed with CGPL in 2017, CGPL shared with ADB in March 2018, additional observations on the recommendations of the technical study report. ADB s discussions with CGPL on these observations are underway, ADB will continue to monitor the implementation of the study recommendations and control measures during the supervision missions. 13

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