The project provides discretionary performance based grant to be made available to LSGs. The grant is to be used for creation as well as maintenance of capital assets used in service delivery. As per well established policy and precedent, The World Bank ensures that none of the activities undertaken through the use of its funds lead, directly or indirectly, to any kind of adverse Environmental or Social impact. It is in this context that this Environmental and Social Assessment exercise has been conducted on the proposed project concept and an appropriate Environmental and Social Management Framework (ESMF) developed to suitably address the implications identified during the assessment. The ESMF is discussed in detail and provides guidance on its correct implementation. Needless to say, application of the ESMF is mandatory for all expenditures incurred under Component 1: “Performance Grants” of the project. However in the future, the Local Self Government Department of the Government of Kerala could consider the option to apply it to all activities taken up by the LSG institutions irrespective of the source of funds.

This project has been classified as Category ‘B’ meaning thereby that low to medium level Environmental and Social impacts are expected. Looking at the long and extensive list of LSG functions, it is quite apparent that all the functions listed therein would not necessarily lead to Environmental and Social impacts. It is only activities pertaining to certain specific sectors such as sanitation, infrastructure, agriculture, tiny or small-scale industries, etc. that could plausibly lead to environmental and/or social implications of low to medium magnitude. Most other LSG functions (such as promoting education, welfare of scheduled castes, etc.), would tend to remain rather benign when examined from the environmental and social safeguards angle. It follows that the ESMF would apply only to those activities that lead to any kind of significant adverse environmental and/or social impacts.

The project provides discretionary performance based grant to be made available to LSGs. The grant is to be used for creation as well as maintenance of capital assets used in service delivery. As per well established policy and precedent, The World Bank ensures that none of the activities undertaken through the use of its funds lead, directly or indirectly, to any kind of adverse Environmental or Social impact. It is in this context that this Environmental and Social Assessment exercise has been conducted on the proposed project concept and an appropriate Environmental and Social Management Framework (ESMF) developed to suitably address the implications identified during the assessment. The ESMF is discussed in detail and provides guidance on its correct implementation. Needless to say, application of the ESMF is mandatory for all expenditures incurred under Component 1: “Performance Grants” of the project. However in the future, the Local Self Government Department of the Government of Kerala could consider the option to apply it to all activities taken up by the LSG institutions irrespective of the source of funds.

This project has been classified as Category ‘B’ meaning thereby that low to medium level Environmental and Social impacts are expected. Looking at the long and extensive list of LSG functions, it is quite apparent that all the functions listed therein would not necessarily lead to Environmental and Social impacts. It is only activities pertaining to certain specific sectors such as sanitation, infrastructure, agriculture, tiny or small-scale industries, etc. that could plausibly lead to environmental and/or social implications of low to medium magnitude. Most other LSG functions (such as promoting education, welfare of scheduled castes, etc.), would tend to remain rather benign when examined from the environmental and social safeguards angle. It follows that the ESMF would apply only to those activities that lead to any kind of significant adverse environmental and/or social impacts.