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Environmental Assessment ReportKerala Local Government Strengthening ProjectNFWF Assisted Housing(SS 50%) : The programme is meant for providing housing tofishermen under the Model Village Development Programme. The unit cost per house is Rs.40,000/-. The NFWF and State Government share the cost equally as full subsidy. The outlayprovided is the state share for the programme.2..4.. Worrlld Bank Saffeguarrd PolliiciiessThe World Bank's environmental and social safeguard policies are a cornerstone of itssupport to sustainable poverty reduction. The objective of these policies is to preventand mitigate undue harm to people and their environment in the development process.Given below is an assessment of which Safeguard Policies of The World Bank areapplicable to the Kerala Local Government and Service Delivery Project.SafeguardTRIGGEREDPolicyEnvironmental Assessment (OP/BP 4.01)Description The Bank requires environmental assessment (EA) of projects proposed for Bank financingto help ensure that they are environmentally sound and sustainable, and thus to improveReasonSafeguarddecision making.The proposed project places a finite amount of funds in the form of an untied block grant atthe disposal of LSG institutions in the state. The amount is to be used by the LSG institutionsat their discretion for meeting the costs of any developmental or maintenance activity in linewith their functional mandate and obligations.While certain activities undertaken by the LSGs may have no adverse impact whatsoever onthe environment, certain others such as development of infrastructure, minor irrigation,maintenance of ponds / lakes, sanitation, solid waste disposal, facilitation of agriculturalinputs, etc. might lead to small and localized adverse impacts. Hence the policy is triggered.As a consequence of this poliSuch impacts will be identified and addressed through anEnvironmental Management Framework developed through an Environmental Assessmentof the project concept.TRIGGEREDPolicyNatural Habitats (OP 4.04)Description The policy strictly limits the circumstances under which any Bank-supported project candamage natural habitats (land and water areas where most of the native plant and animalspecies are still present). Specifically, the policy prohibits Bank support for projects whichwould lead to the significant loss or degradation of any Critical Natural Habitats, whosedefinition includes those natural habitats, which are either: legally protected, officiallyproposed for protection, or unprotected but of known to be of high conservation value.ReasonEven in case of other (non-critical) natural habitats, the Bank will support projects thatseemingly cause significant loss or degradation only when (a) there are no feasiblealternatives to the project's overall net benefits; and (b) acceptable mitigation measures,such as compensatory protected areas, are included within the scope of the project.Kerala has about 32 designated natural habitats and they are protected by National andState regulations. These include 2 Biosphere reserves, 6 National Parks, 14 Wildlife / BirdSanctuaries, 1 Reserve forest, 1 Tiger Reserve and 8 Mangrove sites. In terms of geographicalarea, the size of the state is relatively small and due to this, there is a high concentration of86