Project Number: 2727 – PK, Tranche – II

{Jan – Jun, 2011}

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

Environment & Social Safeguards Section – Project Management Unit

Office of the Chief Engineer (Development)

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 ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents.

Bi-annual Social Safeguards Monitoring Report

ABBREVIATIONS

ADB Asian Development Bank

ADB TA ADB Technical Assistance (Grant for Project preparation)

AHS Affected Households

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

GRC Grievance Redress Committee

GS Grid Substation

HA Hector Area

IA Implementing Agency

IEE Initial Environmental Examination

PESCO Peshawar Electric Supply Company

Km Kilometer

KV Kilo – Volt

LARP Land Acquisition and Resettlement Plan

m2 Square meter

MOW&P Ministry of Water and Power

MFF Multi – Tranche Financing Facility

NOC No Objection certificate

PAPs Project Affected Persons

PDEIP Power Distribution Enhancement Investment Program

PEPA Pakistan Environmental Protection Act

PEPCO Pakistan Electric Power Company

PMU Project Management Unit

ROW Right of Way

TL Transmission Line

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DEFINITION OF TERMS

Affected Persons (AP’S) All the people affected by the project through land acquisition, relocation,

or loss of incomes and include any person, household (sometimes referred

to as affected households (AH’s) or project affected family), firms, or

public or private institutions. AH’s therefore include; i) persons affected

directly by the safety corridor, right-of-way, tower or pole foundations or

construction work area; (ii) persons whose agricultural land or other

productive assets such as trees or crops are affected; (iii) persons whose

businesses are affected and who might experience loss of income due to

the project impact; (iv) persons who lose work/employment as a result of

project impact; and (v) people who lose access to community

resources/property as a result of the project.

Compensation Payment in cash or kind for an asset to be acquired or affected by a project

at replacement cost at current market value.

Cut-off Date The date after which people will NOT be considered eligible for

compensation i.e. they are not included in the list of AHs as defined by the

Census. Normally, the cut-off date is the last date of the Resettlement Field

Surveys (RFS).

Due diligence Report Projects which do not have any significant social impacts hence do not

involve/ require any land acquisition therefore; a brief due diligence

report (DDR) is prepared for the documentary requirements.

Environment Surroundings in which an organization operates, Including air, water,

land, natural resources, flora (Plants), fauna (Animals), humans, and their

Interactions.

Environmental Aspect Element of an organization’s activities or products or services that can

interact with the environment; environmental aspects can be Significant or

non-significant based on environment risk Assessment and a significant

aspect can have.

EIA Detailed study based on environmental assessment (EA) to determine the

type and level of effects an existing facility is having, or a proposed project

would have, on its natural environment

Encroachers Those people who move into project area after the cut-off date and are

therefore not eligible for compensation or other rehabilitation measures

provided by the project.

Entitlement The range of measures comprising cash or kind compensation, relocation

cost, income rehabilitation assistance, transfer assistance, income

substitution, and relocation which are due to /business restoration which

are due to AHs, depending on the type and degree nature of their losses,

to restore their social and economic base.

GRC Grievance Redressal Committee

GRP Grievance Redressal Process/ Procedure

IEE A Preliminary attempt to evaluate environmental impacts in order to

determine whether a full-scale environmental impact assessment is

needed.

Land acquisition The process whereby a person is compelled by a public agency to alienate

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all or part of the land s/he owns or possesses, to the ownership and

possession of that agency, for public purposes, in return for fair

compensation.

LARP Projects which do have significant socio-economic impacts hence involve/

require land acquisition therefore; a detail land acquisition and

resettlement plan (LARP document) is prepared for the documentary

requirements.

Non-Titled Those who have no recognizable rights or claims to the land that they are

occupying and includes people using private or state land without

permission, permit or grant i.e. those people without legal title to land

and/or structures occupied or used by them. ADB’s policy explicitly states

that such people cannot be denied compensation.

Replacement Cost The method of valuing assets to replace the loss at current market value,

or its nearest equivalent, and is the amount of cash or kind needed to

replace an asset in its existing condition, without deduction of transaction

costs or for any material salvaged.

Resettlement Field Survey The detailed inventory of losses that is completed after detailed design

and marking of project boundaries on the ground, socioeconomic data on

the affected households/families, and stakeholder consultations.

Sharecropper The same as tenant cultivator or tenant farmer, and is a person who

cultivates land they do not own for an agreed proportion of the crop or

harvest.

Significant Impact 200 People or more will experience major impacts, which are defined as; (i)

being physically displaced from housing, or (ii) losing ten per cent or more

of their productive assets (income generating).

Social Impact Assessment Social Impact Assessment is analyzing, monitoring, and management of

social consequence of development interventions project infrastructure.

Vulnerable Any people who might suffer excessively or face the risk of being

marginalized from the effects of resettlement and includes; (i) female-

headed households with dependents; (ii) disabled household heads; (iii)

poor households (within the meaning given previously); (iv) landless; (v)

elderly households with no means of support; (vi) households without

security of tenure; (vii) ethnic minorities; and (viii) marginal farmers (with

landholdings of five acres or less).

Resettlement Field Survey The detailed inventory of losses that is completed after detailed design

and marking of project boundaries on the ground, socioeconomic data on

the affected households /families, and stakeholder consultations.

S-P Sub-project

Sharecropper The same as tenant cultivator or tenant farmer, and is a person who

cultivates land they do not own for an agreed proportion of the crop or

harvest.

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TABLE OF CONTENTS

ABBREVIATIONS ................................................................................................................... 2 DEFINITION OF TERMS ........................................................................................................ 3 1: INTRODUCTION .............................................................................................................. 6

1.1 PESCO ....................................................................................................................... 6

1.2 Power Distribution Enhancement Investment Program ............................................ 6

1.3 Power Distribution Enhancement Investment Project (PDEIP) – Tranche-II ........... 6

1.4 Objective of the Project – PDEIP (Tranche-II).......................................................... 7

1.5 Scope of the Work ..................................................................................................... 8

1.6 Management Structure - Directorate of CE (Development) / Project Management

Unit ................................................................................................................................... 8

2. SOCIAL SAFEGUARD STATUS .................................................................................... 9 Social Documentation & Disclosure ............................... Error! Bookmark not defined.

2.3 Present Status of the Project. ................................................................................... 10

2.4 Grievance Redress Committee (GRC) ..................................................................... 10

2.5 Social Awareness & Trainings................................................................................. 11

2.6 Internal Monitoring & Field Visits .......................................................................... 11

ANNEX - A ............................................................................................................................. 12 IESCO JURISDICTION MAP ....................................................................................... 12

ANNEX - B.............................................................................................................................. 13 DETAIL SCOPE OF WORK OF TRANCHE - II SUBPROJECT................................ 13

ANNEX - C.............................................................................................................................. 15 ORGANIZATIONAL STRUCTURE OF PMU – PESCO ............................................ 15

ANNEX - D ............................................................................................................................. 16 MANAGEMENT STRUCTURE OF E&SS – PMU – PESCO ..................................... 16

LIST OF TABLES 1. Program Basic Information…………………………………………………… 6

2. Project Compliance Chart ……………………………………………………. 16

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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).

1.2 Power Distribution Enhancement Investment Program Government of the Islamic Republic of Pakistan (GoP) through Ministry of

Water and Power (MOW&P) with assistance of Asian Development Bank

(ADB) 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.

1.3 Power Distribution Enhancement Investment Project (PDEIP) – Tranche-II The Power Distribution Enhancement Investment Project (PDEIP) Tranche-

II is designed to provide grid-connected customers with adequate and

reliable supply of electricity. The rehabilitation, augmentation, and

expansion of power distribution infrastructure will increase the reliability of

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, among 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

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Augmentation of Power Transformers in existing Grid Stations

New Transmission Lines

Remodelling of Transmission Lines

Installation of capacitors on 11 KV

Rehabilitation works

System Modernization

The projects basic information is provided in Table 1.

Table 1: Program Basic Information.

1.4 Objective of the Project – PDEIP (Tranche-II)

The main objectives of this Investment Program are; (i) improve power

distribution infrastructure through system rehabilitation, augmentation,

The Program Power Distribution Enhancement Investment Program (PDEIP). Multi – Tranche Financing Facility (MFF).

Subproject Tranche – II subproject.

Sponsoring Agency Government of Pakistan. Ministry of Water & Power (MoW&P).

Executing Agency Pakistan Electric Power Company (PEPCO).

Implement Agency Peshawar Electric Supply Company (PESCO).

Type of Financing Loan amount US $ 26.66 Million. Loan No. 2727 – PAK; Tranche – II Subproject.

Loan Signing Date January 28, 2011.

Loan Effectiveness Date September 30, 2011.

Closing Date March 31, 2015.

Date of Last ADB Review Mission

May 12 – 13, 2011.

Focal Person Chief Engineer (Development), Project Management Unit , Peshawar Electric Supply Company (PESCO).

Focal Person for Environment & Social Safeguards

Deputy Manager (E&SS), Project Management Unit, Peshawar Electric Supply Company (PESCO).

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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 & Transmission Line, 21 Nos.

Extension/Augmentation. The detail scope of work of Tranche - II

subproject is attached at Annex – B.

1.6 Management Structure - Directorate of CE (Development) / Project Management Unit To carry out and handle the investment projects PESCO has established

Project Management under the administrative control of Chief Engineer

(Development). The PMU 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. Project Finance: They are responsible for taking care of counterpart

financing, funds flow arrangements, payments, recording and

monitoring of both ADB & WB funds. Also, will establish, monitor and

manage the imprest account and statement of expenditure (SOE)

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procedures. Furthermore ensure timely preparation of the annual

audited project accounts.

iv. 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.

1.6 Environmental & Social Safeguard Section – PMU PESCO

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. Presently, the E&SS Section has one Environmental and one Social

Impact expert under the supervision of a Deputy Manager Environmental

and Social Safeguard (E&SS). The organizational structure of E&SS – PMU

PESCO is attached at Annex – D.

2. SOCIAL SAFEGUARD STATUS

Land Acquisition and Resettlement Plans (LARP):

(i) 01 LARP Report in respect of PESCO sub-projects under Tranche-2

(both in English & Urdu versions) have been translated, typed/edited

and uploaded/ displayed on PESCO official websites.

(www.pesco.gov.pk).

(ii) Proper compensation on account of loss of crops/ trees on actual

basis will be paid to the affected persons/ households.

(iii) Environmental & Social Complaint Register will be implemented to

record/ log complaints of affected household/ persons at each project

site (Tranche-2)

(iv) Effected house holds from 132KV D.I.Khan Industrial (Gomal

University) Grid Station and Transmission Line Sub Project have

been verified by Revenue Department D.I.Khan.

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132 kV D.I.Khan Grid Station & Transmission Line Subproject:

The D.I.Khan Industrial substation and Transmission Line Subproject comprises 132 kV D.I.Khan Industrial Grid Station and 2,110m long double circuit transmission line. It is located near the Gomal university(GU), D.I.Khan and. will be constructed on 64 kanals land donated by GU to PESCO. This 64 kanals area is out of GU’s vast land area lying vacant. But PESCO preferred to purchase the land to avoid any future complications. The deal has been finalized between PESCO and GU. The new D.I.Khan Industrial 132 kV grid station will be connected to the existing Taunsa-D.I.Khan 132 kV transmission line, by constructing a 132 kV double circuit transmission line. The new 132kV transmission line will involve the construction of a total of 9 towers, of which only 4 towers will be constructed in the private farmlands, thereby affecting temporarily crops and trees of a total of 7 landowner farmers, with no tenants. Since a vacant piece of land is being purchased by PESCO from GU, also a government organization, for constructing of a new 132kV grid station, no people will be affected, But the construction of the new 2110 m long new 132kV transmission line will temporarily affect farmlands of a total of seven farming households.

The new 2,110 m long 132kV double circuit transmission line will be connected to the existing Taunsa – D. I. Khan 132 kV transmission line by constructing a new tower between the later line’s Tower Nos. 371 and 372. It will traverse partially and temporarily affect private farmlands (4 out of 9 towers), while 5 towers will be constructed on unproductive barren lands. Moreover, it will cross Indus Highway (N-55) between its Tower Nos. 2 and 3, and a minor canal between its Tower Nos. 8 and 9, both to be constructed on vacant land within the Gomal University premises.

2.3 Present Status of the Project. Presently the project is in documentation phase and no project is in execution phase. The bidding documents of civil works of Tranche – II Subprojects have been prepared and submitted to the ADB for review and NOC.

To comply with national law, an EIA report along with short LARP report, of the project, after the approval of CEO, PESCO, was submitted to EPA Peshawar which issued NOC for 132KV D.I.Khan Grid Station & Transmission Line Sub Project.

2.4 Grievance Redress Committee (GRC) To address and resolve the complaints & issues of Project Affected Persons (PAPs) related to the components of Tranche – II sub projects, PESCO will constitute Grievance Redressal Committee (GRC) inline of the ADB Social Safeguard Policy. The committee members are as follow:

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i. Project Director (GSC/ C&O) Convener

ii. Deputy Manager (E&SS) Member

iii. Assistant Manager (Social Impact) Member

iv. Environment and Social Inspector Member

v. Contractor Representative Member

To facilitate Project Affects Person (PAPs) and Stakeholders for registering their complaints for immediate and amicable resolution a complaint register has been placed at the Office of Chief Engineer (Development).

2.5 Social Awareness & Trainings An Awareness campaign regarding Communicable Diseases has been initiated to educate the workers regarding communicable diseases especially HIV/AIDS, Hepatitis and Tuberculosis (TB). Pamphlets / Leaflets for awareness regarding TB, HIV/AIDS and Hepatitis have been prepared, printed and distributed to PESCO’s GSC Directorate.

23 Nos. trainings have also been conducted for PESCO staff on environmental and social aspects of the projects.

2.6 Internal Monitoring & Field Visits Internal monitoring of the projects will be carried out by Environmental and Social Safeguard (E&SS) section PMU, PESCO during the execution phase for the smooth and effective implantation of EMMP & Monitoring plan.

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ANNEX - A

PESCO JURISDICTION MAP

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ANNEX - B

DETAIL SCOPE OF WORK OF TRANCHE - II SUBPROJECT

Cost & Scope of Tranche-II Projects

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.

258.69 Million Rs. 2.99 Million $

21 Nos. of Augmentation/ Extensions

Sr. No.

Sub-Project

Estimated Cost

Pakistani Rs. US $

1- Charsadda 100.150 Million Rs. 1.160 US $

2- Gombat 53.620 Million Rs. 0.621 US $

3- Hayat Abad 135.480 Million Rs. 1.569 US $

4- Kohat 122.670 Million Rs. 1.421 US $

5- Peshawar Industrial 122.670 Million Rs. 1.421 US $

6- Peshawar City 122.670 Million Rs. 1.421 US $

7- Peshawar Fort 122.670 Million Rs. 1.421 US $

8- Peshawar University 122.670 Million Rs. 1.421 US $

9- Sakhi Chashma 48.720 Million Rs. 0.564 US $

10- Warsak 48.720 Million Rs. 0.564 US $

11- Hussai 48.720 Million Rs. 0.564 US $

12- Pabbi 100.150 Million Rs. 1.160 US $

13- Nowshera City 63.640 Million Rs. 0.737 US $

14- Swabi 48.720 Million Rs. 0.564 US $

15- Swat 100.150 Million Rs. 1.160 US $

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16- Bannu 122.670 Million Rs. 1.421 US $

17- Abbot Abad 100.150 Million Rs. 1.160 US $

18- Manshehra 100.150 Million Rs. 1.160 US $

19- Haripur 100.150 Million Rs. 1.160 US $

20- Katlang 44.680 Million Rs. 0.517 US $

21- Muzaffar Abad 48.720 Million Rs. 0.564 US $

TOTAL SUB-PROJECT COST 1877.94 Million Rs 21.758 Million US $

TOTAL ESTIMATED PROJECT COST: 1877.94 Million Rs. (21.758 Million US $)

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ANNEX - C

ORGANIZATIONAL STRUCTURE OF PMU – PESCO

A.M (MC&C)

(Habib Ur Rehman)

D.M (MC&C

(Abdullah Shah)

A.M (P&S)

D.M (PS&C)

(Fazal-e-Rabbi)

Manager (Planning Scheduling & Co-Ordination

(Amdad Hussain)

A.M (Procurement)

(Shahan)

D.M (Procurement-I)

(Gul Wahid)

A.M (Procurement)

D.M (Procurement-II)

Manager (Procurement) (Aftab Ahmed Sethi)

A.M (Social Impact)

A.M (Enviroment & Safegour

(Masood Shah)

Deputy Manager (Enviroment & Safegourd) Samina Mustajab Zaidi)

A.M Finance

(Shabir Ahmed)

A.M Finance

Dy. M (Finance)

(Mukhtar Ahmed)

Manager (Project Finance)

Chief Engineer (Development) PMU

(M.Siddiqe Awan)

Chief Executive Officer

(Ejaz Ahmed)

(Shah Jehan)

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ANNEX - D

MANAGEMENT STRUCTURE OF E&SS – PMU – PESCO

MASOOD SHAH

SAMINA MUSTAJAB ZAIDI

MUHAMMAD SIDDIQUE AWAN