PAK: Power Distribution Enhancement Investment Program, Tranche 2

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1 Environmental Monitoring Report Bi-annual Environmental Monitoring Report January 2013 PAK: Power Distribution Enhancement Investment Program, Tranche 2 Prepared by Peshawar Electric Supply Company, Khyber Pakhtunkhawa for the Asian Development Bank.

2 (i) (ii) NOTES The fiscal year (FY) of the Government of the Islamic Republic of Pakistan and its agencies ends on 30 June. In this report, "$" refers to US dollars. This environmental monitoring report is a document of the borrower. The views expressed herein do not necessarily represent those of 's Board of Directors, Management, or staff. and may be preliminary in nature. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

3 Bi-annual Environmental Monitoring Report Project Number: 2727 PK, Tranche II {July Dec, 2012} Islamic Republic of Pakistan Power Distribution Enhancement Investment Project (PDEIP) Tranche II Multi Tranche Financing Facility (MFF) Financed by the ASIAN DEVELOPMENT BANK Prepared by Samina Zaidi Deputy Manager (E&S) Masood Shah AM (Environment) Office of the Chief Engineer (Development) PMU PESHAWAR ELECTRIC SUPPLY COMPANY (PESCO) PESCO Head Office, Shahmi Road Peshawar. For Pakistan Electric Power Company (PEPCO) Peshawar Electric Supply Company (PESCO) This report does not necessarily reflect the views of or the Government concerned, and and the Government cannot be held liable for its contents. Asian Development Bank

4 (July - Dec, 2012) ABBREVIATIONS Asian Development Bank AJK Azad Jammu & Kashmir BPI British Power International CED Chief Engineer Development E&SS Environmental and Social Safeguard EA Executing Agency EIA Environmental Impact Assessment EPA Environmental Protection Agency EPD Environmental Protection Department GOP Government of Pakistan GS Grid Substation IA Implementing Agency IEE Initial Environmental Examination PESCO Peshawar Electric Supply Company KV Kilo - Volt MOW&P Ministry of Water and Power MFF Multi - Tranche Financing Facility NOC No Objection certificate PDEIP Power Distribution Enhancement Investment Program / Project PEPA Pakistan Environmental Protection Act PEPCO Pakistan Electric Power Company PMU Project Management Unit TL Transmission Line E&SS PMU PESCO Page 2 of 21

5 TABLE OF CONTENTS ABBREVIATIONS 2 Part I INTRODUCTION July - Dec, 2012) Error! Bookmark not defined. 1.1 PESCO Error! Bookmark not defined. Figure 1: PESCO Jurisdiction Map Error! Bookmark not defined. 1.2 Directorate of CE (Development) / Project Management Unit 1 Figure 2: Organizational Structure of PMU - PESCO Power Distribution Enhancement Investment Program (PDEIP) - Tranche- II Objective of the Program (PDEIP) Scope of the Work Environmental & Social Safeguard Section - PMU Present Status of the Project Monitoring Indicator of Part - I set by 8 Part II ENVIRONMENTAL MONITORING Monitoring Monitoring Indicator of Part - II set by. 9 Part III ENVIRONMENTAL MANAGEMENT 9 Environment Documents (IEE / EIA Reports) 9 Awareness & Trainings Error! Bookmark not defined. EMMP as a part of Bidding Documents 10 Clauses in the Bidding Documents 11 Monitoring Indicator of Part - III set by 13 Annexes 14 MONITORING DATA 14 PHOTOGRAPHS 16 IMPLEMENTATION REPORT ON EIA/IEE MITIGATION REQUIREMENTS 17 E&SS PMU PESCO Page 3 of 21

6 (July - Dec, 2012) (July Dec, 2012) Part 1. INTRODUCTION 1.1 PESCO Peshawar Electric Supply Company Ltd. PESCO is a Public Limited Utility Company, established in 1998 under Companies Ordinance 1984 and is responsible for distribution of Electric Power within its territorial jurisdiction and presently serving approximately 2.10 Million Customers (Domestic) in the thirteen districts of KPK Province (Peshawar, Mardan, Swabi, Swat, D.I.Khan, Kohat, Haripur, Abbotabad, Manshera, Bannu, Nowshera, Charsadda and Muzaffarabad). PESCO Jurisdiction Map Figure 1:. _ o Rnoarto f-,croot T T L am an ot Tan Khania iynt Murt k Knni r_.114 Ithnjuri*Cacil :1006 P aharp Yanik annbaxa C (110111VV2( King. Ch.! 10 AJ N Vehowa LE IA H E&SS PMLA Page 4 of 21

7 (July - Dec, 2012) 1.2 Directorate of CE (Development) / Project Management Unit To carry out and handle investment projects PESCO has established Project Management under the supervision of Chief Enginee (Development). The PMU if comprises of 4 sections. i. Planning Scheduling & Coordination: To take the responsibilities for (i) identifying and proposing the subprojects to PEPCO / Donor Agency for approval and financing, (ii) Scheduling and Monitoring (iii) preparing the necessary documentation in line with the statutory, corporate and Donor policies including quarterly reports (iv) coordinate with the consultants. ii. Procurement: To take care of all responsi8bilities and tasks related to procurement (goods, works and services) and for the activities related to material planning, preparation of bidding documents according to the requirement of the Donors, getting the evaluation done and for placing the orders after approval of the Donors, inspection and then transportation to the site. Arrange release of material thru CRR Karachi and final delivery to the site. iii. iv. Project Finance: They are responsible for taking care of counterpart financing, funds flow arrangements, payments, recording and monitoring of both & WB funds. Also, will establish, monitor and manage the imprest account and statement of expenditure (SOE) procedures. Furthermore ensure timely preparation of the annual audited project accounts. Environment & Social Safeguard: To take care of all the responsibilities and tasks related to environment, land, and social (including involuntary resettlement and indigenous people) and provide oversight on occupational health, safety and environment safeguards in the working environment. The organizational structure of PMU PESCO is below in Figure - 2. E&SS PMU PESCO Page 1 of 21

8 N rr N a) 121 ti CU ro C LL G1 O 'a7.) C co 4-, ro E 0 a) 4-,.(7) 0 U E CU CU C a) E 2 2 au O 0 Environmental Monitori Organizational Structure of PMU - PESCO u-0 c(1:): E L CU < 00-Q CO 4'3 C 4- (0 < C too c.= C c C 0O K3 u ro 06 To c C ro 0 a) _c 4-, C a) c U U ozs U 6 0 :E to 5 (Faza l-e-ra bbi) 1=7 C a) E 2v a a 2 ad E&SS - PMU - PESCO

9 (July - Dec, 2012) 1.3 Power Distribution Enhancement Investment Program (PDEIP) - Tranche-II. Government of the Islamic Republic of Pakistan (GoP) through Ministry of Water and Power (MOW&P) with assistance of Asian Development Bank () is implementing the Power Distribution Enhancement Investment Program (PDEIP) under Multi Tranche Financing Facility (MFF). This Program is part of the GoP long term energy security strategy. Pakistan Electric Power Company (PEPCO) has been nominated by Ministry of Water and Power (MOW&P) to act as the Executing Agency (EA) while Peshawar Electric Supply Company (PESCO) is the Implementing Agency (IA) for execution work in its service area. Program basic information is provided in Table 1. Table 1: Program Basic Information. The Program Subproject Sponsoring Agency Executing Agency Implement Agency Type of Financing Power Distribution Enhancement Investment Program (PDEIP). Multi - Tranche Financing Facility (MFF). Tranche - II subproject. Government of Pakistan. Ministry of Water & Power (MoW&P). Pakistan Electric Power Company (PEPCO). Peshawar Electric Supply Company (PESCO). Loan amount US $ Million. Loan No PK ; Tranche - II Subproject. Loan Signing Date January 28, Loan Effectiveness Date March 30, E&SS - PMU - IESCO Page 3 of 21

10 (July - Dec, 2012) Closing Date March 31, Date of Last Review Mission Focal Person Focal Person for Environment & Social Safeguards 06/03/2012. Chief Engineer (Development), Project Management Unit, Peshawar Electric Supply Company (PESCO). Deputy Manager (E&SS) along with AM (Environment) Project Management Unit, Peshawar Electric Supply Company (PESCO). The Power Distribution Enhancement Investment Program (PDEIP) - Tranche-II is designed to provide grid-connected customers wit adequate and reliable supply of electricity. The rehabilitation, augmentation, nd expansion of power distribution infrastructure will increase the reliability f supply to residential, agricultural, commercial, and industrial customers across Pakistan. A reliable electricity supply will lead to social and economic benefits and improved conditions for schools, hospitals, and social services, mong others. The main components of the program are given as under: Conversion / Up-gradation of Grid Stations Extension of Power Transformers in existing Grid Stations Augmentation of Power Transformers in existing Grid Stations New Transmission Lines Installation of capacitors on 11 KV Rehabilitation works System Modernization E&SS - PMLI - PESCO Page 4 of 21

11 July - Dec, 2012) 1.4 Objective of the Program (PDEIP) The main objectives of this Investment Program are; (i) improve power distribution infrastructure through system rehabilitation, augmentation, and expansion; and relieve the power system from distribution bottlenecks and constraints; (ii) enable continued operation and maintenance in accordance with best international practices; and (iii) the system will be capable of meeting peak demand, with electricity outages significantly reduced. 1.5 Scope of the Work PESCO Tranche - II subproject includes 01 No. New 132KV D.I.Khan (Gomal University) Grid Station (Sr Transmission Line, 21 Nos. Extension/Augmentation. The detail scope of work of Tranche - II subproject is given below in table Table 2: Detail Scope of Work. NEW 132kV Grid Station and Transmission Lines Sr. No Sub-Projects Estimated Cost Pakistani Rs. US $ 1- The New 132KV D.I.Khan Industrial (Gomal University) Grid Station and Transmission Line Sub Project Million Rs Million $ 21 Nos. of Augmentation/ Extensions Sr. No. Sub-Project Estimated Cost Pakistani Rs. US $ 1- Charsadda Million Rs US $ 2- Gombat Million Rs US $ 3- Hayat Abad Million Rs US $ E&SS PMU PESCO Page 5 of 21

12 (July - Dec, 2012) 4- Kohat Million Rs US $ 5- Peshawar Industrial Million Rs US $ 6- Peshawar City Million Rs US $ 7- Peshawar Fort Million Rs US $ 8- Peshawar University Million Rs US $ 9- Sakhi Chashma Million Rs US $ 10- Warsak Million Rs US $ 11- Hussai Million Rs US $ 12- Pabbi Million Rs US $ 13- Nowshera City Million Rs US $ 14- Swabi Million Rs US $ 15- Swat Million Rs US $ 16- Bannu Million Rs US $ 17- Abbot Abad Million Rs US $ 18- Manshehra Million Rs US $ 19- Haripur Million Rs US $ 20- Katlang Million Rs US $ 21- Muzaffar Abad Million Rs US $ TOTAL SUB-PROJECT COST Million Rs Million US $ TOTAL ESTIMATED PROJECT COST: Million Rs. ( Million U 1.6 Environmental & Social Safeguard Section - PMU The Environmental & Social Safeguard (E&SS) Section of PMU, PESCO provides an overall supervision and advisory services during the Pre - Construction phase, Construction phase & Post - Construction phase of the project. The E&SS also assists and advises GSC Directorate, Construction Directorate and other PESCO departments on environmental and social matters overall. Presently, the E&SS - PMU - PESCO Page 6 of 21

13 July - Dec, 2012) E&SS Section has one Environmental under the supervision of a Deputy Manager Environmental and Social Safeguard (E structure of E&SS - PMU PESCO is attached as below.. The organizational Figure3: Management Structure of E&SS - PMU - PESCO C.E (Development) AFTAB AHMAD SETHI Dy. Manager (E&SS) SAMINA MUSTAJAB Asstt. Manager (Social Impact) Vacant Asstt. Manager (Environment) MASOOD SHAH 1.7 Present Status of the Project. The contract has been awarded to M/S Pinggao-Potential (IV) vide letter No dated 02/03/2012 while contract agreement was.igned on 02/04/2012. The following tasks have been worked out with M/S P nggao-potential (JV) in a Kick off meeting held in the office of Chief Enginee (Dev) PMU PESCO on 18/05/2012. E&SS - PMU - PESCO Page 7 of 21

14 (July - Dec, 2012) Submission of Waste Disposal Plan before commencement of Civil Works. The said Firm has been provided with Environmental Monitoring guidelines to be strictly followed during the entire period of civil work. M/S Pinggao - Potential has hired Mr.Rashid Na az (Civil Engineer also having a degree in agriculture with research work on nvironmental issues) as Environmental and Social Inspector. E&S Cell of PESCO has started internal monitoring of Tr the-ii sub projects (Ext.& Aug) and during site visits all the concerned staff (Line superintendent,sdo,subengineers) were briefed on adaptation of environmental meas es. 1.8 Monitoring Indicator of Part - I set by. Description of Indicator 1. Construction activities and Project Progress during previous 6 months. 2. Changes in project organization and Environmental Management Team. 3. Relationships with Contractors, owner, lender, etc. Remarks Construction work of 132 kv D-I khan Gomal University Grid station is under process. Environmental Monitoring checklists received from M/s Pinggao have been submitted onward to SMEC. The land for the above Grid Station has been purchased by PESCO from Gomal University. No change. Routine based meetings with M/S Pinggao - Potential, firm constructing the said Grid Station. Part II ENVIRONMENTAL MONITORING 2.1 Monitoring. Environmental Monitoring of the projects will be carried out by the contractors under the supervision of Environmental and Social Safeguard (E&SS) section PMU, PESCO during the execution phase. For this, field visit will also be carried out by E&SS Section, PMU PESCO for the smooth and effective implantation of E&SS PMU PESCO Page 8 of 21

15 July - Dec, 2012) EMMP & Monitoring plan as prescribed in approved Environ mental Assessment Report. 2.2 Monitoring Indicator of Part - II set by. Description of Indicator Summarizes the previous six months monitoring data and provide explanations of any instances where environmental standards or guidelines are exceeded. Noise and Vibration. Water Quality. Air Quality. Flora and fauna monitoring. Remarks Extension and carried out by PESCO own x civil work Transformer B extension) so no are occurred. ugmentation works are PD (GSC) staff within sting grid stations and f small scale ( only y, no switch room such type of instances The said jobs have been explained to Mr. Rashid Nawaz Environmental Inspector of Pinggao - Potential and only one water quality testing report have received to this office which has been submitted onward to SMEC. Part III ENVIRONMENTAL MANAGEMENT Environment Documents (IEE / EIA Reports) PESCO PDEIP Tranche - II Projects has been classifie as Category B Project in accordance to Environment Policy (2002) a d Environmental Assessment Guidelines (2003). The project falls under Schedule - II of PEPA Act, 1997, which requires Environmental Impact Assessment (EIA) to be carried out for the project. Initial Environmental Examination (IEE) Reports we e prepared by PEPCO through M/S British Power International (BPI), Laho. After the approval of the IEE reports were received from BPI through P PCO in December These reports are available on PESCO website. E&SS PMLI PESCO Page 9 of 21

16 Bi Annual Environmental Monitorin: Report (July - Dec 2012) Under the Pakistan Environmental Protection Act 1997, the project components required preparation of Environmental Impact Assess ent (EIA) report instead of IEE. Hence to comply the regulations a compre ensive EIA report was prepared by E&SS PMU - PESCO. The EIA Report for sub projects under Tranche - II has been approved by CEO PESCO & are available on PESCO website (www esco 9 k). Awareness & Trainings: No training regarding Environmental Monitoring & Social aspects have been conducted for PESCO ESIC staff. EMMP as a part of Bidding Documents Environmental Management & Mitigation Plan (EMMP) & Monitoring Plan from the approved EIA Report has been made part of all the bidding documents of civil works of Tranche - II Subprojects. E&SS - PMU - PESCO Page 10 of 21

17 July - Dec, 2012) Clauses in the Bidding Documents Employer's Requirement/ Supplementary Information: SI-03. Environmental Issues: The Contractor shall comply and carry out all the monitoring and mitigation measures as set forth in the Environmental & Social Management Plan (EMP). The EMP & Environmental Monitoring Plan are attached as Annexure with bidding document. General Condition of Contract: J. Protection of Environment CLAUSES TO BE ADDED REGARDING ENVIRONMENTAL MANAGEMENT AND MONITORING PLAN (EMMP) AND LAND ACQUISITION AND RESETTLEMENT PLAN (LARP) IN BIDDING & CONTRACT DOCUMENTS OF THE SUB-PROJECTS TO BE FINANCED BY UNDER TRANCHE-II. The contractor will: (a) Be responsible for the implementation of Environmental Management and monitoring plan (EMMP) and land acquisition & resettlement plan (LARPs). (b) Engage/ hire an "Environmental Inspector" who will liaise and coordinate with PESCO environmental and social cell (PESC) in order to ensure compliance with the proposed mitigation and monitoring measures required under EMMP and LARP, necessary guidance in this respect will be provided to environmental Inspector by PESCO environmental and social cell (PESC). (c) Fully restore pathways, other local infrastructure (sewerage line, water transporting system/ pipe, rain water drainage system etc) damaged due to construction activity at the project site and agricultural land to at least pre-project condition upon the completion of construction. (d) Provide a written notice regarding any unanticipated environmental risk or impacts that arise during implementation of the project and were not considered in the IEE, EMP and the LARP. (e) Obtain NOC or compliance certificate from PESCO environment & social cell regarding effective and successful implementation of EMP & LARPs prior to claim any payment regarding civil works of grid station and transmission line. E&SS PMU PESCO Page 11 of 21

18 (July - Dec, 2012) (f) Comply with all applicable laws (Pakistan Environment Protection Act PEPA 1997, Labour Laws) of the country and pertinent occupational health and safety regulations. (g) Try to provide the optimum employment opportunity to women living in the vicinity of the project area and refrain from child Labour. (h) Disseminate information at work sites regarding risk of transmissible diseases (HIV/AIDS & Hepatitis) for the workers employed during construction work and take adequate/ proper measures to protect workers from potential exposure to these diseases. (i) Avoid discrimination between the wages of benefits of male and female workers for work of equal value. In case of non-compliance with mitigation and monitoring measures of EMMP and LARPs, the employer has the right to suspend work and withheld payments till the remedial measures. Any delay caused by the non-compliance of the mitigation and monitoring measures by the contractor will be on the account of the contractor and will be liable to pay penalty up to 10% of the total cost of contract and no extension of time will be allowed to the contractor. Special Condition of Contract: 9. Contractor's Responsibilities 9.8 The Contractor shall comply with all applicable national, provincial, and local Environmental laws and regulations. The Contractor shall (a) Establish an operational system for managing environmental impacts. (b) Carry out all of the monitoring and mitigation measures set forth in the Initial Environmental Examination ("IEE") and the Environmental Management Plan (EMP) attached hereto as Appendix 8 / Annexure - C (c) Allocate the budget required to ensure that such measures are carried out. The Contractor shall submit to the Employer quarterly report on the carrying out of such measures and the actual costs for the implementation of such measures shall be reimbursed by the Employer to the Contractor from Provisional Sums" Contract Forms / Contract Agreement: The following documents shall constitute the Contract between the Employer and the Contractor, and E&SS PMU PESCO Page 12 of 21

19 July - Dec, 2012) each shall be read and construed as an integral part of the Contract (Reference GCC Clause 2): (a) This Contract Agreement and the Appendi es hereto (b) Letter of Bid and Price Schedules submitte by the Contractor (c) Special Conditions (d) General Conditions (h) Specification (i) Drawings (f) Environmental & Social Mitigation Plait (g) Environmental Monitoring Plan (j) Other completed Bidding Forms submitte with the Letter of Bid (k) Any other documents part of the Employe 's Requirements Monitoring Indicator of Part - III set by. Description of Indicator EMS, SSEMP and work plans. Report on delivery of documents, required amendments etc. Site Inspections and audits - summarizes the number and type of site visits Non-compliance notices - summarizes the details on the number of notices given out and the issues covered. Summaries the ranking of issues. Corrective action plans - report on timeliness of preparation and completion Consultation and complaints - report on any consultation undertaken and list any complaints received. Remarks EMS prepared. No amendments required. Site Inspections will be carried out during execution phase of the project. Nil. Nil. Consultation carried out during preparation 1 of Environmental Assessment reports. No complaints received yet. E&SS PMU PESCO Page 13 of 21

20 (July Dec, 2012) Annexes MONITORING DATA E&SS PMU PESCO Page 14 of 21

21 July - Dec, 2012) E&SS - PMU - PESCO Page 15 of 21

22 (July - Dec, 2012) PHOTOGRAPHS E&SS - PMLI - PESCO Page 16 of 21

23 July - Dec, 2012) IMPLEMENTATION REPORT ON EIA/IEE MITIGATION REQUIREMENTS Reference Requirement Action to date Action required/ Comment Not applicable at this stage. E&SS PMU PESCO Page 17 of 21

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