PAK: Power Distribution Enhancement Investment Program, Tranche 2

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1 Social Monitoring Report Bi-annual Social Monitoring Report January 2013 PAK: Power Distribution Enhancement Investment Program, Tranche 2 Prepared by Multan Electric Power Company, Punjab for the Asian Development Bank.

2 NOTES The fiscal year (FY) of the Government of the Islamic Republic of Pakistan and its agencies ends on 30 June. (ii) 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 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.

3 MULTAN ELECTRIC POWER COMPANY (MEPCO) SOCIAL SAFEGUARD MONITORING PORT For the Period: July-December 012 NAME OF PROJECT: ASIAN DEVELOPMENT BANK PDEP-MFF (Power Distribution Enhancement Investment Program-Multi Tranche Financing Facility (Tranche II) Office of the Chief Engineer (Development) PMU (Project Management Unit) MEPCO

4 1-MEPCO Introduction 11 Multan Electric Power Company Ltd; MEPCO is a Fublic Limited Utility Company, established in 1998 under Companies Ordinance 1984 responsible for distribution of Electric Power within its territorial jurisdiction and presently serving more than four Million customers (Domestic, Commercial, Agricultural, Industrial and others) in thirteen districts of Punjab Province (Multan, Sahiwal, Bahawalpur, Bahawalnagar, Dera Ghazi Khan, Rajanpur, Rahim Yar Khan, Lodhran, Khanewal, Pakpattan, Muzaffargarh, Vehari and Layyah). 1.1-About Project Management Unit (PMU) To effectively plan, execute and monitor the Power Distribution Enhancement Investment Program (Tranche II), a Project Management Unit (PMU) has been established under Chief Engineer (Development) comprising of five sections i.e. Planning, Scheduling & Coordination, Procurement, Finance and Environment & Social Safeguard along with Project Director (GSC). 2- Brief Detail of Project Existing conditions of the MEPCO power distribution and transmission system are inadequate to meet rapidly growing demand for electrical power. To cope with this situation, the existing power infrastructure has to be improved and upgraded. The overall contribution of power infrastructure requires institutional arrangements, capacity building that support strategic management of the sector, planning and management of investments. The basic information/ data about the loan are here as under:- Loan Number: (ADB TA Loan No PAK) Project Title:-Power Distribution Enhancement Investment Program, Multi-Tranche Financing Facility PDEPMFF-Tranche-II Location of the Project:-13 Nos. of Districts in the service territory of MEPCO i.e. Multan, Sahiwal, Bahawalpur, Bahawalnagar, Dera Ghazi Khan, Rajanpur, Rahim Yar Khan, Lodhran, Khanewal, Pakpattan, Muzaffargarh, Vehari and Layyah Borrower:-GOP/ MEPCO Executing Agency:-PEPCO

5 Implementing Agency:-MEPCO 2.1-Objectives of the Project MEPCO through GoP has undergone a Project Financing agreement with Asian Development Bank for: Strengthening the capacity of Power Distribution and Transmission networks To meet the increasing electricity demand in the selected areas more efficiently To upgrade the existing power infrastructure. 2.2-Scope of Work There are 20 Nos. of projects under ADB Tranche-II. Detail is here as under: 1. Construction of 02 No. of New 132kV Grid Station and allied Transmission Lines 2. Conversion of 03 Nos. of Grid Substations from 66kV to 132kV and allied Transmission Lines Nos.of Augmentations 4. Capacitors installation Overall the proposed MFF has been designed to address both investment and institutional aspects in electric power sector. Development Objectives/ Project Purpose will be fully achieved after completion of the proposed Sub-projects. 3- Estimated Project Compensation Cost: The estimated cost of the sub-projects has been determined. Its detail is here as under:-

6 Sr. No Sub-Projects Estimated Compensation Cost PKRs. US $ KV New Miranpur (Gallaywal) Grid Station (Land) 6.44 Million Rs Million $ 2- Feed for New 132kVMiranpur (Gallaywal) Grid Station (Crops & Trees) 4.66 Million Rs Million $ 3-4- Feed for Conversion of 66 KV to 132 KV Alipur Grid Station Feed for Conversion of 66KV to 132 KV Fatehpur Grid Station TOTAL ESTIMATED COMPENSATION COST Million Rs Million Rs Million Rs Million $ 0.02 Million $ Million US$ 0.28 Source: Land Acquisition and Resettlement Plan, About Social Safeguard The key objectives of Social Safeguard are here as under: To identify and document all applicable social safeguard policy and other relevant requirements (ADB Involuntary policy and guidelines). Effectively plan, update/ revise, execute, monitor and implement LARP (Land Acquisition and Resettlement Plan) at each stage of project. Ensure all project activities to be carried out/ executed without superseding Health and Safety of employees, local community and contractor staff. Report all HSE findings/ observations to top managerent Create social awareness among all our project key stakeholders (GSC, Contractor(s) & staff) Effectively contribute towards "better social compliance."

7 5-Involuntary Resettlement Identification and Categorize ion In Compliance to the ADB guidelines; all projects have been assigned an Involuntary Resettlement Categorization based on outcome of Initial Screening and Evaluation of Significance of probable social resettleme t impacts i.e. Category (A) Significant Projects having significant social impacts that require land acquisition on permanent basis, means 200 or more p ople will experience major impacts, which are defined as being physically displaced from housing or losing 10% or more of their productive assets. A full detail esettlement plan is required for Category-A subprojects. Category (B) Projects include involuntary resettlement impacts that are not deemed significant and require a short resettlement plan. Category (C) Non-Significant involuntary resettlement effects are foreseen in Category C projects. They neither require a resettlement plan nor a resettlement framework. Category C projects only require a short DDR (Due Diligence Report) There are 03 out of 20 Projects which fall in Category-B (01 No. of New Grid Stations and allied T/Lines and 02 No of T/Lines for conversion of 66 KV to 132 KV grid stations) requires short LARP preparation, implementation, monitoring and uploading/ posting at ADB and MEPCO official website. While 02 Nos. of subprojects fall in Category- C, does not require any LARP as projects are being executed within the boundary of already existing grid stations. 6-FIELD SURVEYS 6.1 Purpose Field Surveys have been conducted to: Know the implementation of social safeguard policy and assessments. Initial screening of indigenous and vulnerable people Project resettlement categorization. Internal monitoring of LARP document.

8 7. Findings/ Observations of visited Project Sites Findings/ Observations noted during the site visit. Its detail is as follows: 7.1 New132kV Kameer Grid Station Site Land has already been purchased by MEPCO for the sub-project Boundary wall for the grid station has been constructed and civil works for grid station construction and Transmission Line has not been started yet. There are no potential significant social impacts associated with the subproject as physical work for this subproject will remain within the boundary of newly constructed grid station site. Public consultation meeting carried out with general public, adjacent community to grid station site and with land owner and they were informed about the project activities. They were also informed about the public information material complaint register and about the process that how can they record their complaints (if any) about the project activities. They were provided visiting cards along with office address information and telephones of concern persons for any suggestion/complaint Owner's nephew is benefitting from the grid site land by cultivating until physical works initiate. There is no compensation involved in this subproject except compensation for the grid station land that has already been paid to the Affected Persons (APs). 7.2 Conversion of 66 kv to 132kV Alipur Grid Station and allied Transmission Line Civil works for this subproject has just been started. Although the conversion works will be carried out totally within the boundary of the existing grid station without acquiring additional land,

9 but there might be potential social impacts associated with the construction of transmission line that will pass through four villages and hamlets may affect a total of ha of crops land and 421 Nos of trees. Public consultation meeting carried out with affected peoples, general public, and adjacent community to grid station and Transmission Line and they were informed about the project activities. Residents of adjacent community showed their concerns about the transmission line route and suggested to change the transmission line routee. Survey is being conducted to mitigate/minimize transmission line routee affects on adjacent community through changing line route. Affected people were informed about the public information material complaint register and about the process that how can they record their complaints (if any) about the project activities. They were provided visiting cards along with office address information and telephones of concern persons for any suggestion/complaint Compensation to the Affected Persons (APs) has not been provided as physical works not started and GCS will make sure the provision of compensation to the affected persons before the start of physical work. 7.3 Conversion of 66 kv to 132kV Fatehpur Grid Station and allied Transmission Line Civil work for this subproject has just been started. Although the conversion works will be carried out totally within the boundary of the existing grid station without acquiring additional land, but there might be potential social impacts associated with the construction of transmission line as the Transmission Line will pass through the two villages and hamlets may affect a total of 7.93 ha of crops land and 178 Nos. of trees.

10 Public consultation meeting carried out with affected peoples, general public, and adjacent community to grid station and Transmission Line and they were informed about the project activities. Over all people were happy and willing to support this subproject. However, residents of Chak No. 249 TBA; and chak no 107 showed their concerns about the proposed transmission line route and suggested to change the transmission line route. Drilling has been done for water testing and soil testing, however testing reports not received yet. Affected people were informed about the public information material complaint register and about the process that how can they record their complaints (if any) about the project activities. They were provided visiting cards along with office address information and telephones of concern persons for any suggestion/complaint Compensation to the Affected Persons (APs) has not been provided as physical works not started yet. So, GSC will make sure the provision of compensation to the affected persons before the commencement of physical works. 8- Social Safeguard Work Status Land Acquisition and Resettlement Plans (LARP): (i) (ii) (iii) Both LARPs and DDR Reports in respect of MEPCO sub-projects under Tranche-II (both in English & Urdu versions) have been translated, typed/edited and uploaded/ displayed on MEPCO official websites. ( Summary of LARPs after translation into Urdu has been sent through registered mail to the all Affected Persons. These LARP/ DDR Reports of subprojects have been revised on actual basis for Tranche-Il in respect MEPCO and revised reports have been submitted to the Asian Development Bank after approval of the competent authority.

11 (iv) (v) (vi) (vii) (viii) (ix) Urdu version of Environmental Management Plan after translation has been provided to GSC and at each grid site. Proper compensation on account of loss of crops/ trees on actual basis will be paid to the affected persons/ households. Environmental & Social Complaint Register has been provided to GSC to be made available on each active project site to record/ log complaints of affected household/ persons at each project site Grievance redressal committee has been constituted and documented procedure for grievance redressal has been prepared and already shared with the ADB. An Integrated Environmental & Social Training Program has been developed and approval of same has been obtained from CEO MEPCO, implementation of the same is under process. The public hearings for tranche-ii subprojects (Miranpur, Alipur,Fatehpur, Kameer and Noorsar ) Grid Stations has been conducted at Lodrhan and Pakpatan districts respectively 9- MEPCO GRIEVANCE REDRESSAL COMMITTEE (GRC) In Compliance to the Asian Development Bank Involuntary Policy Guidelines/ Procedures and Section 1-4 (iii) "Institutional Arrangements" of Land Acquisition and Resettlement Plan (LARP); MEPCO has constituted a grievance redressal committee to redress the grievances of the affected persons (APs)/ households (Ahs) regarding R.O.W. problems, compensation for land, trees/ crops damages during the execution of tranche-ii subprojects under the Asian Development Bank loan. The Organogram of MEPCO grievance redressal is as under:- 9.1-ORGANOGRAM OF GRIEVANCE REDRESSAL COMMITTEE CE(Development) Convener P.D (GSC) Memeber Manager (PS&C) Memeber DM (Environment & Safeguard) Memeber Member (AHs representative)

12 9.2- FUNCTIONING OF THE GRIEVANCE REDRESSAL CQMMITTEE 1. MEPCO normally takes care to prevent grievances rather than going through a Redressal process/ procedure. This can be obtained through careful land acquisition & resettlement design, establish full participation, coordination and consultation/ communication b/w MEPCO and the community (affected households/ persons). 2. Environmental & Social Complaint Register both in English and Urdu versions has already been communicated and implemented by the Project Director (GSC) at each project site. 3. This GRC will function/ operate in i)-pmu building MEPCO HQ, PD (GSC) office Multan. While internal monitoring at project site is carried out by GSC field officer/officials and E&S team. 4. When any problem about land resettlement arises, it will be resolved by GRC through coordination with the Nazim/ Naib Nazim of the affected communities. 5. This Committee shall listen and respond to the Complaints raised before and during the execution of the projects. These complaints will be registered/ logged in environmental & social complaint register (ESCR) which i now available at all project sites. 6. Firstly, MEPCO shall try to rectify/ resolve the complaints at their own level in coordination with GSC/ TLC, LAO/ ALAO and A.M Environment/ Social staff within two weeks time. 7. If complaint remains unresolved/ unsatisfactory, the complainant must notify/ lodge his complaint to MEPCO GRC within one month time w.e.f registering the original complaint in ESCR register. 8. All necessary control measures/ arrangements shall be taken/ adopted for Redressal (i.e. Resurvey/ Redesign and Amendment etc.). The grievance shall be redressed and the MEPCO GRC will provide the decision within 21 days of registering the complaint. The Complainant shall be contacted and informed accordingly. 9. If complaint still remains unresolved and the grievance redress system fails to satisfy the AH/ AP, they can further submit their case to the appropriate court of law as per the process set out in Sections 18 to 22 of the Land Acquisition Act (LAA) 1894, the complainant can take legal action.

13 9.3-Accessibility to the Community This grievance redressal process/ procedure is accessible to anyone /local Community. Grievance notice(s) with cut off date in local language (Urdu) will be issued to affected household/ person and their complaints registered/ logged in ESCR register. 10. CONCLUSION AND RECOMMENDATIONS 10.1 Conclusions The conclusions of this study are the result of comprehensive studies and specialist assessments. These studies were based on issues identified through the study process and the parallel process of stake holder's consultation. The stake holder's consultation process has been rigorous and extensive, and every effort has been made to include representatives of all stakeholders within the process. Although there was no issue highlighted during the field/monitoring visits regarding land acquisition and compensation but there might be some potential social impacts associated with the construction of Transmission Lines as Transmission Lines in three subprojects will be pass through the different villages and may shall affect crops land and trees in the subproject. Compensation to the affected persons has not been provided as physical work not started yet but GSC will make sure the provision of compensation (where involved) to the affected persons before the beginning of physical work Recommendations From the findings of the specialist studies undertaken, the following mitigation measures are proposed to be implemented in order to minimize any potentially significant impacts: An implementation of monitoring program should be in letter and spirit.

14 ADB Funded Pakistan Power Distribution Enhancement Investment Program Tranche-H The requirements of monitoring should be agreed with the stakeholders. It is also recommended that the process of communication and consultation with the community representatives is aggressively maintained. Construction work of new T/lines should be planned in accordance with LARPs, DDRs, EIA & IEE reports so all activities are executed in off season, so no compensation in the form of "Kharaba" required to be given to each AH'S/ AP's.