PAK: MFF Power Distribution Enhancement Investment Program (Tranche 2)

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Social Monitoring Report Bi-annual Social Monitoring Report July 2014 PAK: MFF Power Distribution Enhancement Investment Program (Tranche 2) Prepared by Lahore Electric Supply Company, Punjab for the Asian Development Bank.

2 NOTES (i) The fiscal year (FY) of the Government of the Islamic Republic of Pakistan and its agencies ends on 30 June. (ii) In this report $ refer to US dollars. This social monitoring report is a document of the Borrower. The views expressed herein do not necessarily represent those of ADB 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.

60Sii5 LAHORE ELECTRIC SUPPLY COMPANY Office of the Chief Engineer Development PMU LESCO 132 kv, Qurtaba Grid Station Complex, Bahawalpur Road Lahore Landline: 042 99214410; Fax: 042 99214412 Email: cedev@lesco.gov.pk No. Op ca,_20 C.E (Rev)/DM (E&S)/02 Dated: 3 J / 07/ 2014 Mr. Adnan Tareen, Energy Specialist/Mission Leader Pakistan Resident Mission Asian Development Bank Level 8, North Wing, Serena Office Complex, Khayaban-e-Suhrawardy G-5, Islamabad, Pakistan ASIAN DEVELOPMENT BANK n n n 24 JUL 2014 L, PAKISTAN RESIDENT MISSION ISLAMABAD Sub: Bi Annual Social & Environmental Monitoring Reports.Iune 2014 Please find enclosed herewith Bi Annual Social & Environment Monitoring Reports for the period January-June 2014 in respect of LESCO STG Works financed by Asian Development Bank (Tranche II) for further necessary action please. DA/As Above Info: 1. Technical Director LESCO 2. Ms.Safia Shafig Environment Specialist (Consultant) Level 8, North Wing, Serena Office Complex, Khayaban-e-Suhrawardy G-5, Islamabad, Pakistan 3. Mr.Ashfaq Khokhar Senior Safeguard Officer Level 8, North Wing, Serena Office Complex, Khayaban-e-Suhrawardy G-5, Islamabad, Pakistan 4. Master File

ASIAN DEVELOPMENT BANK 2 4 JUL 2014 PAKISTAN RESIDENT rili`ssiom ISLAMABAD Bi Annual Internal Social Monitoring Report Project Number: 2727 - PK (Tranche - 11) (January -June 2014) Islamic Republic of Pakistan Power Distribution Enhancement Investment Project (PDEIP) Tranche - Multi Tranche Financing Facility (MFF) Financed by Asian Development Bank Prepared By: Environment & Safeguard Cell Project Management Unit Office of the Chief Engineer Development LESCO 132 kv Qurtaba Grid Station Complex, Bahawalpur Road Lahore 54000 Pakistan For: Pakistan Electric Power Company (PEPCO) Lahore Electric Power Company (LESCO) This report does not necessarily rellect the views of ADB or the Government of Pakistan. and AlB and the Government can not be held liable for its contents ASIAN DEVELOPMENT BANK

Table of Contents Sr. #1 Brief Description I Introduction of LESCO and PMU 2 Project Overview 3 Scope of Work 4 Social Management 5 Social Monitoring

1. Introduction LESCO is a public limited company responsible for distribution of electricity within its territorial jurisdiction comprising of five districts; Lahore, Kasur, Okara, Sheikhu Pura and Nankana of Punjab Province. LESCO was established in 1998 under Companies Ordinance, 1984 as a result of restructuring of the Power Wing of WAPI)A alter the enforcement of National Electric Power Regulatory Authority (NEPRA) Regulation of Generation, Transmission and Distribution of Electric Power Act (XL of 1997). LESCO is presently serving approximately three Million customers (Domestic, Commercial, Agricultural, Industrial and others). Project Management Unit (PMU) 1.2 LESCO Environment and Social Cell had been established in 2007 and this cell is currently part of Project Management Unit PMU established in 2009 and headed by Chief Engineer Development. PMU comprises of four sections i.e. Planning, Scheduling & Coordination, Procurement, Finance, M.C&C, Environment & Social Safeguard and GSC department. The organogram of Environment and Social Safeguard Cell is given below: Chief Executive Officer LESCO Technical Director Chief Engineer (Development D.M (Environment & Social) Social Inspectors (2) A.M (Social) Surveyor (2) ty A.M (Environment) Environment Inspectors (2) Computer Operator Record Keeper LDC Security Guards (5)

2. Project overview 2.1 LESCO through GOP has under gone a loan, project and financing agreement with the Asian Development Bank under Power Distribution Enhancement Investment Project Tranche - II in order to strengthen its existing distribution, transmission infrastructure and institutional capacity. The detail regarding project is summarized below: ADB Loan No. Project Title Borrower Executing Agency Implementing Agency 2727(SF) - PAK Power Distribution Enhancement Investment Project Tranche II Islamic Republic of Pakistan Pakistan Electric Power Company (PEPCO) Lahore Electric Supply Company Ltd. (LESCO) Total project cost US $ 38.06 Million. ADB's financing US $ 27.18 Million Counterpart Funding US $ 10.57 Million. Loan Signing Date January 28, 2011 Date of Closing March 31, 2014 Loan Effective Date September 30, 2011 3. Scope of Work Sub projects to be financed by Asian Development Bank in Tranche IT included following scope of work: Construction of New Grid Stations = 05 All t2,111ciltat ion of Power Transformers = 12

4. Social Management 4.1 02 Nos. Land Acquisition and Resettlement Plans LARPs (approved by ADB) for 132 kv Grid Stations Doula Chuchak and Central Park & 03 Nos. Due Diligence Reports (approved by ADB) for 132 kv Grid Stations DHA Rahber, Jubilee Town and Press Club Housing Society have been prepared by M/s BPI and CEO LESCO approved the same on 10 07 2010. 4./ Land Acquisition and Resettlement Plans (LARPs) have been translated into Urdu and uploaded on LESCO's website (www.lesco.gov.pk) on 15-11-2010 after approval of ADB 4.3 Clauses regarding Social safeguards have been provided to the procurement section to include in the bidding documents and EMMP & RP is the part of Bidding Document of STG Projects on turnkey basis. 4.4 An orientation workshop on Environment and Social Issues has been conducted on December 24'2011. Another Training Session is planned in next quarter. 4.5 Land Acquisition and Resettlement Plans LARPs have been updated keeping in view the inflation rate according to current market rates as desired by ADB for Doula Chuchak and Central Park Grid station & Transmission Line. Updated LARPs have been submitted to ADB for approval on 29-04-2014.LARPs were prepared on approved route plan and still there is no change in route plans so there is no remarkable/major change in the baseline data as provided in original LARP. 5. Social Monitoring 5.1 The land for all grid stations is in the possession of LESCO. No involuntary resettlement is involved as land for four grid stations had been provided by Housing Societies while land for Doula Chuchak grid station is the property of LESCO for about fifteen years. 5.2 Civil Works have been completed at 132 kv Doula Chuchak grid station. Civil works of Jubilee Town & DHA Rahber are under progress.

5.3 GSC (1-&G) division is making assessment for compensation payment to the affected persons of feeding transmission line of Doula Chuchak and will be disbursed to affected persons as soon as possible. Compensation will be paid on actual basis to each affected person in three stages (construction of Foundation and erection of tower and stringing of conductor).this office has requested P.D GSC LESCO for submission of compensation plan and the disbursement schedule to ensure timely payment to affected persons. 5.4 Augmentation works shall be carried out within existing grid stations and no land acquisition or involuntary resettlement is involved. 5.5 GSC staff has been apprised regarding social aspects of the subprojects and on site briefing to the contractor has also be given for effective implementation of LARPs during site visits in June 2014. 5.6 Mitigation Measures 5.6.1 Social Complaint Register (SCR) in English and Urdu version has been prepared and placed at active site in order to register the grievances and complaints of the stakeholders and LESCO will also ensure for same at the other project sites. 5.6.2 Grievance Redressal Committee (GRC) has been notified for Tranche 11 in order to comply with the Grievance Redressal Mechanism (GRM) described in LARPS. The organogram of GRC is given below: Project Director GSC LESCO Dy. Manager GSC concerned LESCO Dy. Manager (P&S) PMU LESCO Dy. Manager (Environment and Safeguard) LESCO Convener Member Member Member