Initial Environmental Examination

Home , Aalapot, Bajrayogini, Bhadrabas, Bhimdhunga, Chalnakhel, Chandragiri Municipality

SASEC Power Transmission and Distribution System Strengthening Project (RRP NEP 50059-003)

February 2020

NEP: South Asia Sub-regional Economic Cooperation Power Transmission and Distribution System Strengthening Project

Prepared by Nepal Electricity Authority for the Asian Development Bank.

CURRENCY EQUIVALENTS (as of 7 August 2019)

Currency Unit = Nepali rupee/s (Rs) NPR 1.00 = $0.00882 US$1.00 = Rs113.32000

ABBREVIATIONS

ABC aerial bundled cable ADB Asian Development Bank AIS air insulated substation CBS Central Bureau of Statistics CE common era CO2 carbon dioxide COD chemical oxygen demand DHM Department of Hydrology and Meteorology DO dissolved oxygen EHS environment, health and safety EIA environmental impact assessment EMF electromagnetic field EMP environmental management plan EPI environmental performance index GIS gas insulated substation GRM grievance redress mechanism HDI human development index IEE Initial Environmental Examination IEEE Institute of Electrical and Electronics Engineer Inc. International Commission on Non-Ionizing Radiation ICNRP Protection IUCN International Union for Conservation of Nature kV kilovolt LPG liquefied petroleum gas masl meters above sea level mm millimeter µg/m³ micro gram per cubic meter NEA Nepal Electricity Authority PM2.5 fine particulate matter below 2.5 micrometers PMD project management directorate Power Transmission and Distribution Efficiency PTDEEP Enhancement Project PTDSSP Power Transmission and Distribution System Strengthening Project ROW right of way SASEC South Asia Sub-regional Economic Cooperation SF6 sulphur hexa fluoride SNNP Shivapuri Nagarjun National Park SPCC spill prevention control and countermeasures United Nations Educational, Scientific and Cultural UNESCO Organization

WEIGHTS AND MEASURES

ha (hectare) – Unit of area km (kilometer) – 1,000 meters kV – kilovolt (1,000 volts) kW – kilowatt (1,000 watts) kWh – kilowatt-hour MW – megawatt MU – million units

NOTES

In this report, "$" refers to US dollars unless otherwise stated.

This initial environmental examination 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. Your attention is directed to the “terms of use” section on ADB’s website.

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 judgements as to the legal or other status of any territory or area.

TABLE OF CONTENT

EXECUTIVE SUMMARY ...... x I. INTRODUCTION ...... 2 A. Background and Rationale ...... 2 B. Objective, Scope and Methodology of the IEE ...... 3 C. Report Organization ...... 4 II. POLICY, LEGAL, AND ADMINISTRATIVE FRAMEWORK ...... 6 III. DESCRIPTION OF THE PROJECT ...... 11 A. Project Type and Project Components ...... 11 B. Nature, Size and Location of Project Facilities ...... 14 C. Design Principles and Construction Methods...... 17 D. Alternatives to the Project ...... 18 E. Cost and Implementation Schedule ...... 19 F. Project Benefits ...... 19 IV. DESCRIPTION OF THE ENVIRONMENT ...... 20 A. Project Area...... 20 B. Geography, Geology and Soil ...... 20 C. Climatic and Meteorological Conditions ...... 26 D. Air Quality ...... 30 E. Water Resources ...... 32 F. Cultural Resources ...... 33 G. Biological Resources ...... 34 H. Socio-economic Conditions ...... 45 I. Proposed Project Sites ...... 48 V. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES ...... 49 A. Potential Impacts ...... 49 A2. Watershed Drainage, Soil Erosion and Waterlogging ...... 49 A3. Air Quality ...... 50 A4. Noise ...... 51 A5. Water Quality ...... 52 A6. Biodiversity ...... 52 A7. Public Health ...... 54 A8. Construction Camps and Storage ...... 54 A9. Occupational Hazard and Safety ...... 55 A10. Electric and Magnetic Field Effects ...... 55 A11. Religious, Historical and Archeological Sites ...... 56 A12. Beneficial Impacts ...... 57 B. Mitigation Measures ...... 64 C. Cumulative and Induced Impacts ...... 67 D. Enhancement Measures ...... 70 VI. INFORMATION DISCLOSURE, CONSULTATION AND PARTICIPATION ...... 72 A. Consultations and Participation ...... 72 B. Information Disclosure ...... 75 VII. GRIEVANCE REDRESS MECHANISM ...... 76

VIII. ENVIRONMENTAL MANAGEMENT PLAN ...... 79 A. Proposed Monitoring Plan ...... 79 B. Work Plan ...... 112 C. Responsibilities for Mitigation, Monitoring, Reporting and Review ...... 113 D. Environmental Management Costs Estimates ...... 119 B. Provision for Initial Environmental Examination/Environmental Management Plan ...... 119 IX. CONCLUSION AND RECOMMENDATION ...... 120 ANNEXES ...... 123 Annex 1 - Rapid Environmental Assessment (REA) Checklist ...... 123 Annex 2 - Field Photographs and Maps ...... 128 Annex 3 - Record of Consultation and Information Disclosure for PTDSSP ...... 133 Annex 4 - Air and Water Quality Standards...... 189 Annex 5 - Outline of an Environmental Monitoring Report ...... 191 Annex 6 - Environmental Audit for Existing Facilities ...... 194 Annex 7 - Health Impacts Associated with EMF ...... 221

LIST OF TABLES

Table 1: Relevant National and International Regulatory Framework for Energy Development .. 6 Table 2: Environmental Classification According to ADB Safeguard Policy Statement (2009) .... 9 Table 3: Project Components and Footprint ...... 14 Table 4: Environmentally Sensitive Sections Crossed by the Five Distribution Centers of Kathmandu Valley ...... 42 Table 5: Demographic Status of Project Area ...... 46 Table 6: Potential Impacts and Mitigation Measures of Overall Project Components ...... 59 Table 7: Preliminary Environmental Management Plan ...... 85 Table 8: Environmental Management Plan's Work Plan ...... 113

LIST OF FIGURES

Figure 1: Settlement inside SNNP ...... 35 Figure 2: Environmental, Health and Safety Gains of PTDSSP ...... 58 Figure 3: Power System Network Map of Nepal ...... 68 Figure 4: Diagram Showing Relationship between Existing/Under Construction work and work Proposed under PTDSSP ...... 69 Figure 5: Roles and Responsibilities for Environmental Management Plan Implementation .... 114 Figure 6: Ongoing Construction Work Observed on 220/132kV Substation from 400kV SS site ...... 196 Figure 7: Construction work for Khimti 220/132kV GIS Building ...... 197 Figure 8: Levelling work at Barhabise Substation site ...... 198 Figure 9: Lapsiphedi Substation Site under yellow circle ...... 199 Figure 10: Ongoing Construction Work Observed on 220/132kV Substation from 400kV SS site ...... 210

Figure 11: Construction work for Khimti 220/132kV GIS Building with recently installed transformers observed towards left of the building and scrap dumping site observed towards far left ...... 210 Figure 12: One Household who has received compensation but has not left the premises because of internal family dispute between father and son ...... 211 Figure 13: Warning Signage used all over the construction site of the 220/132kV GIS Substation ...... 212 Figure 14: Safety Inspection and Monitoring Site for under construction 220.132kV GIS Substation in Khmiti ...... 212 Figure 15: First Aid Room of the 220/132kV GIS Substation ...... 213 Figure 16: Recently Installed and oil filled Transformers pit filled with monsoonal rains, the water will be pumped out without releasing the spilled oil to the outside environment ...... 214 Figure 17: Surveillance work for safety in 220/132kV SS site ...... 215 Figure 18: Transformer Oil Drums after filling up the transformers of the 220/132kV GIS substation ...... 216 Figure 19: 400kv GIS Substation Site Land ...... 217 Figure 20: Levelling work at Barhabise Substation site ...... 218 Figure 21: Unstable Area where the retention work is ongoing ...... 219 Figure 22: Lapsiphedi Substation Site under yellow circle ...... 220

LIST OF MAPS

Map 1: Project Locations for PTDSSP ...... 22 Map 2: Project Location of Province 2 ...... 23 Map 3: Project Location of Province 2 Distribution Sites ...... 23 Map 4: Project Location Segment 1 of Province 2 Distribution Sites ...... 24 Map 5: Project Location of Province 2 Segment 2 Distribution Sites ...... 24 Map 6: Project Location of Province 2 Segment 2 Distribution Sites ...... 25 Map 7: Project Location of Province 2 in relation to Mineral Resources ...... 25 Map 8: Location of Sagarnath Forest Region ...... 38 Map 9: Consultation Locations in Kathmandu ...... 73 Map 10: Project Consultation Locations Where Elephant Make Visits ...... 74 Map 11: GRM Mechanism for NEA ...... 78 Map 12: GRM in NEA ...... 78

LIST OF PHOTOS

Photo 1: Left Side Boundary of Pashupatinath and Right side of the Road Bhandarkhal the line is in Proposed Core Zone ...... 34 Photo 2: 0.4 kV Line Over the Core Zone of Swayambhu ...... 41

EXECUTIVE SUMMARY

1. This initial environmental examination (IEE) including an environmental management plan (EMP) for the proposed Power Transmission and Distribution System Strengthening Project (PTDSSP) in Nepal, has been prepared in compliance with the Asian Development Bank’s (ADB) Safeguard Policy Statement (2009), and national (Nepal) environmental assessment requirements.

2. The project aims to complete reinforcement and modernization of Nepal Electricity Authority’s (NEA) supply in and around Kathmandu. The project will also ensure that hydropower generation can be evacuated and transmitted to critical areas in Kathmandu and outside load centers, and the excess traded with neighboring countries. This project will also begin strengthening the distribution system outside Kathmandu in a systematic and phased manner starting with areas where people are still without access to the grid power, despite residing in close proximity, and those who have access face low quality and unreliable electricity supply. The outputs of the project will be (i) power system transmission capacity increased by upgrading three existing substations (Khimti 1, Barhabise, and Lapshiphedi) in Bagmati Province from 220 kilovolt (kV) to 400 kV, upgrading the existing 132 kV double circuit transmission lines from Pathlaiya substation to the Parwanipur substation in Province 2, and constructing one new 132kV substation and associated facilities at Pokhariya in Province 2; (ii) distribution systems in Kathmandu Valley, Bharatpur, and Pokhara improved with the construction of 12 kilometer (km) of underground 132kV transmission line from Bhaktapur substation to Koteshwor, 2 km of underground 66 kV transmission line from Koteshwor to Baneswor substation, a new 132/11 kV substation with automation in Koteshwor in Kathmandu Valley in Bagmati Province, and modernization and reinforcement of Kathmandu Valley distribution centers, Bharatpur distribution center in Chitwan district in Bagamti Province; and Pokhara distribution center in Kaski district in Gandaki Province; and (iii) distribution network in Province 2 improved through network extension and reinforcement including construction of 33 kV, 11 kV, and 0.4 kV lines and substations to provide quality and reliable electricity supply to new and existing customers. Electric vehicle charging stations will also be installed under the project scope.

3. The ADB will finance the project through a loan. The executing agency of the project will be NEA. The project will be implemented over five years with completion date by December 2025.

4. As per ADB’s Safeguard Policy Statement (2009), the project is classified as “B” for environment requiring the preparation of an IEE. Following the requirements of ADB’s Safeguard Policy Statement (2009), this IEE has been prepared covering all components of the project.

5. The project will be located in three provinces namely Province Number 2, Bagmati Province (Kathmandu Valley and Chitwan District) and Gandaki Province (Kaski District) of Nepal. Upgrading of the existing 132 kV transmission lines from the Pathlaiya substation to the Parwanipur substation by replacing the conductors partially falls within the boundaries of the Parsa National Park, but NEA have assured works will be confined to the existing right of way from Pathlaiya substation in respect of the couple of towers already located within it. Undergrounding of existing feeders in the Kaski district of Gandaki Province falls within the Lake Cluster of the Pokhara Valley Ramsar site but works will be confined to the existing road. One project component is located in the buffer zone of the Koshi Tappu Wildlife Reserve but does not encroach into the site. No other project components will fall within the boundaries or buffer zones of existing or proposed protected areas including World Heritage Sites, Ramsar sites, National Parks, Wildlife Reserves, or Conservation Areas.

6. Potential adverse environmental impacts and risks will primarily occur during the construction phase due to site clearance and earth works, transportation and use of materials and equipment, presence of construction workers, and, noise generating construction activities. These impacts will be mostly temporary and generally reversible, affecting only communities in the immediate locality of the project sites. However, potential exposure to electromagnetic field (EMF) and other pollution, health and safety risks associated with transmission and distribution systems will be a permanent, albeit localized, during the operation phase. Potential adverse environmental impacts and risks will be minimized by maintaining adequate distance of electrical equipment from properties, ensuring EMF levels are within international good practice International Commission on Non-Ionizing Radiation Protection (ICNIRP) reference levels, maintaining right of ways in accordance with the Electricity Rule, prohibiting the use of PCBs, bunding transformers and oil storage areas, installing safety signage, and electrical safety community awareness raising activities. In the vicinity of Koshi Tappu Wildlife Reserve, bird collision risk will be an additional risk, to be mitigated through installation of bird markers. The environmental benefits will be secondary in nature with improved reliability of and access to power resulting in reduced consumption of non-renewable fuels. Since a significant portion of Nepal’s power grid is supplied by Hydroelectric power, environmental benefits of clean energy can be justified.

7. Mitigation for the potential adverse environmental impacts of the project during the detailed design and pre-construction, construction and operation phases is included in the EMP. Compliance by NEA and their contractors to its requirements during project implementation will need to be ensured through safeguards monitoring and supervision. For the project components within the boundaries or buffer zones of protected areas, a detailed site-specific construction biodiversity management plan or heritage protection plan as applicable will be cleared by NEA, the relevant protected area management team, and ADB before any site clearance or construction takes place. With this, the project is not expected to result in significant environmental impacts on the protected areas. In addition, as the project involves existing facilities (substations) environmental audits have been conducted and time bound corrective action identified for implementation by NEA before contractors are granted access to the substations.

8. Public consultations have been conducted in the project area (under the Power Transmission and Distribution Efficiency Enhancement Project (PTDEEP) for the Rupshetar, Dharmasthali and Jorpati areas which fall under the Balaju, Jorpati and Baneshwor Distribution Centers in Kathmandu Valley of Bagmati Province with financial assistance of ADB under Loan No. 3542) with additional consultations having a special focus on women and vulnerable groups in Province 2 and Kathmandu Valley of Bagmati Province conducted between July to August 2019 specifically for this project. People in the project area noted that electricity service is poor with frequent interruptions on a daily basis and low quality ─ the voltage at the household level is sometimes too low to charge mobile phones or run water pumps. In Province 2, the 31 March 2019 severe storm (tornado according to Department of Meteorology and Hydrology’s preliminary findings) caused disruption of several power lines and posed safety concerns as well as millions in financial losses to NEA. Given the decline in electricity services during the last several years, with frequent daily interruptions and load shedding, consumers and potentially affected people consulted are supportive of the project. Site observations at selected potential distribution substation sites1 (selection of potential sites for land acquisition was in its initial phase at the time)

1 Observations were undertaken at substations in Birendrabazaar, Pokhariya, Parsa, Bardibas, Nagrain, Lohana, Siraha (Laxmaniya), Saptari (Khadak Municipality), Mahendranagarbazaar (Dhanusha) while Manpur (Rautahat) and Mandra (Mahottari) sites were assessed based on desktop study and in consultation with NEA field officers. It was found that none of these sites were in environmentally sensitive areas.

in Province 2 by a team of technical, social and environmental consultants along with engineer from NEA were carried out from 3 to 5 June 2019. During observations of potential sites in Parsa, Bara, Mahottari and Dhanusa districts, consultations with some people in the area were done to disseminate information about the project activities as a part of ADB’s Safeguard Policy Statement (2009) meaningful consultations process. In addition, from 9 July to 9 August 2019 consultations for the distribution components were carried out in Kathmandu Valley and Chitwan District of Bagmati Province as well as in Province 2. Consultations were carried out in Pokhara, Gandaki Province on 30 September 2019. During implementation, a grievance redress mechanism (GRM) will be established by NEA. This IEE will be publicly disclosed locally in accordance with ADB’s and Government of Nepal’s requirements. 9. The environmental assessment to date is considered sufficient to meet the requirements of ADB’s Safeguard Policy Statement (2009) and Nepal policy and guidance for energy sector projects. Assurances will be incorporated into loan and project agreements, to ensure that the IEE and EMP incorporating the corrective action for existing facilities are fully implemented by NEA. The IEE and EMP will be updated and revised by NEA if necessary if there are any unanticipated impacts including a scope or design change; any changes to the IEE and EMP will be subject to ADB clearance and disclosure. The assessment and findings indicate that ADB’s Safeguard Policy Statement (2009) environment category B (Annex 1-REA Checklist) is appropriate for the proposed project.

I. INTRODUCTION

A. Background and Rationale 1. Nepal is a landlocked, mountainous country located between the large and fast-growing economies of the People’s Republic of China to the north and India to the east, west, and south. It is classified as a low-income, least developed country with gross national income (GNI) per capita of $800 in 2017.2 The government is pursuing an accelerated growth path for Nepal to become a lower-middle income country by 2030, with a per capita GNI of at least $1,026. Nepal has long recognized that the development of its large hydropower potential is an important cornerstone for poverty reduction and economic growth.

2. Sector Challenges. Nepal’s electricity demand has far outgrown its supply capacity, leading to load shedding and increased dependence on imports from India. The estimated peak demand in Nepal during fiscal year (FY) 2017–2018 was 1,500 megawatt (MW) compared to the available power supply capacity of 1,150 MW, resulting in a deficit of about 350 MW. Following years of facing chronic electricity shortages during Nepal’s dry winter months, NEA has made significant improvements over the FY2016–2017 and FY2017–2018 winter periods in satisfying most of its customers with 24-hour electricity supply. This was achieved through a combination of (i) increased electricity imports from India (around 400 MW); (ii) increased transmission capacity and operational flexibility by commissioning of new transmission facilities; and (iii) better load management of major industrial customers. About 63% of the population in Nepal has access to electricity from the main grid but the supply quality has been unreliable and inadequate. The ongoing challenges facing NEA in respect of electricity infrastructure may be characterized by: (i) inadequate generation capacity especially during dry season; (ii) insufficient transmission and distribution capacity; (iii) high technical and commercial losses of over 22% with poor collection efficiency and inadequate tariff; and (iv) lack of awareness and institutional capacity to prepare and implement power projects effectively.

3. Government Priorities. The Government of Nepal has initiated plans to install an additional 10,000 MW of generation capacity over the next 10 years and export the excess electricity to India and Bangladesh. The government has recognized the immediate need to reinforce and upgrade transmission lines and associated substations, including strengthening the distribution networks, to facilitate exporting surplus electricity to India and to ensure reliable supply of electricity to its population, as the market is not yet fully mature for private sector intervention. The latter will help address the country’s energy crisis and ensure universal access to reliable electricity supply for all by 2030. This will contribute in promoting sustainable energy for all (Sustainable Development Goal #7) and achieving Nepal’s Nationally Determined Commitments for the United Nations Framework Convention on Climate Change to reduce its dependency to fossil fuel by 50% and achieve 80% electrification through mix of renewable energy by 2025. The much-awaited Electricity Regulatory Commission has now been operationalized since mid-May 2019 to promote and protect competition in the electricity market, among others.

4. In this context, the focus of Nepal’s power system investment program is now shifting away from NEA’s ability to generate for domestic consumption and procure electricity. It is now gearing towards concentrating on delivery of reliable and quality supply of electricity to all its customers and on trading excess power to India. This is particularly important for high value customers in and around Kathmandu Valley and in corridors earmarked for industrial development. Currently, NEA is implementing the Power Transmission and Distribution Efficiency

2 World Bank. GNI Per Capita (accessed 22 May 2019).

Enhancement Project (PTDEEP) in Kathmandu Valley with financial assistance of ADB under Loan No. 3542. The scope of PTDEEP includes construction of two 220/132 kV grid substations to complete the 400 kV transmission link (initially to be operated at 220 kV voltage level) from Tamakoshi to Kathmandu whilst four 132/11 kV new grid substations will interconnect with the existing transmission system to supply the medium voltage system inside Kathmandu Valley. PTDEEP has also begun the process of reinforcing and modernizing electricity distribution infrastructure within Kathmandu Valley, initially focusing on the critical Maharajgunj and Ratnapark distribution centers, plus installation of 98,000 smart meters and associated infrastructure. PTDEEP is expected to be completed by 2021.

5. The proposed project will complete the reinforcement and modernization of supply into and around Kathmandu, ensuring that hydropower generation can be evacuated and transmitted to the critical Kathmandu load center with excess traded with neighboring countries and that NEA’s customers receive a reliable and secure power supply. This project will also begin strengthening the distribution system outside of Kathmandu in a systematic and phased manner starting with Province 2 where about 20% of the people are still without access to the grid power and those who have it face low quality and unreliable electricity supply. NEA does not yet report electricity network performance, quality and reliability statistics at the provisional level, however it is understood that Province 2 is the worst performing on most measures with losses as high as 50% in some areas.3 Many lines have been extended well beyond their optimum length to connect consumers, resulting in poor voltage profiles and frequent demand-related outages. Much of the low voltage network is in poor condition due to its age and lack of maintenance and mechanical failures are common.

6. The project aims to enhance the quantity and quality of power supplied to NEA’s customers in Nepal. The proposed project will support enhancement and strengthening of the power transmission and distribution system in Nepal. The project is aligned with the following impact(s): reliable and efficient electricity for all by 2030 achieved (National Energy Crisis Reduction and Electricity Development).4 The project will have the following outcome: access, reliability, efficiency of power supply in Nepal improved.5 ADB will finance the project through a loan. The executing agency of the project will be NEA.

B. Objective, Scope and Methodology of the IEE 7. Objective and Scope of IEE. This IEE report documents the environmental assessment of the proposed project and identifies the potential adverse environmental impacts and risks to be considered in the detailed design and pre-construction, construction and operation phases. The IEE addresses, as far as required, the environmental management requirements of Nepal as well as those of ADB’s Safeguard Policy Statement (2009). 8. The objectives of the IEE are to:

(i) identify any legislative and approval requirements under which project activities must occur;

3 There has been marginal improvement due to NEA’s aggressive loss reduction efforts, mainly the non-technical losses resulting from theft and illegal use. However, electricity losses accounts to the highest among all regions with average system loss of 31.3% reported by Janakpur Regional office in the year 2017/18. 4 Government of Nepal, Ministry of Energy, Water and Irrigation. 2016. National Energy Crisis Reduction and Electricity Development; and Government of Nepal, National Planning Commission. 2015. Sustainable Development Goals 2016–2030. National (Preliminary) Report. 5 The design and monitoring framework is in Appendix 1.

(ii) assess the existing environmental conditions and receptors in the project area of influence including the identification of environmentally sensitive areas such as national protected areas networks; (iii) assess the direct, indirect, cumulative, and induced environmental impacts of the sample subprojects on and risks to physical, biological, socioeconomic, and physical cultural resources; and (iv) prepare an EMP incorporating the mitigation and monitoring measures that will guide environmental management during detailed design and pre-construction, construction and operation. 9. The environmental studies have been confined to the project area of influence as defined in ADB’s Safeguard Policy Statement (2009). The corridor of potential impact was taken as a 500- meter (m) radius around the substations and 50m along the transmission and distribution line alignments (existing ROW for 132 kV transmission lines is 18m). However, the potential impact zone is considered up to 5-kilometer (km) radius of substations and transmission and distribution line alignments in respect of indirect impacts on environmentally sensitive areas such as national protected areas networks. Assessment is carried out on various environment components including terrestrial and aquatic ecology, soil, water, air, noise, and socio-economic aspects including occupational and community health and safety and physical cultural resources.

10. Methodology of the IEE. The IEE has been prepared, between May to October 2019, to fulfill ADB’s Safeguard Policy Statement (2009) requirements. It also complies with the environmental safeguard requirements of Nepal. The assessment was carried out using reconnaissance surveys, field visits, consultation with stakeholders and village representatives, review of existing secondary data, collection of primary data to fill any gaps, identification of potential adverse environmental impacts, and identification of mitigation and monitoring measures. The stepwise activities carried out includes:

• review of legal requirements, • review of technical details, • reconnaissance surveys for identification of key issues, data requirements and preliminary consultations, • primary and secondary data collection, • consultations with stakeholders and villagers, and • identification of impacts and mitigation measures.

11. The IEE is based on preliminary locations earmarked for the substation sites and provisional routings for the transmission and distribution line alignments; these may alter following the completion of detailed surveys during the detailed design process. The IEE and EMP will be updated and revised by NEA if necessary if there are any unanticipated impacts including a scope or design change; any changes to the IEE and EMP will be subject to ADB clearance and disclosure.

C. Report Organization 12. In compliance with ADB’s Safeguard Policy Statement (2009) requirements, this IEE has been structured and consists of nine sections:

• Section 1 discusses the project background, rationale, and objectives, and the structure of the report. • Section 2 describes the policy, legal, and administrative framework for the project, including the environmental assessment process.

• Section 3 describes the project components, nature of works, and expected benefits. • Section 4 provides a description of the environment in the project area of influence. • Section 5 discusses potential adverse environmental impacts and benefits, mitigation and enhancement measures. • Section 6 describes public consultation activities, and information disclosure. • Section 7 describes the proposed grievance redress mechanism for the project. • Section 8 presents the EMP including the CAP for existing facilities (substations). • Section 9 presents conclusions and recommendations. 13. An executive summary is provided at the beginning of the report. The report is supported by seven annexes which include the Rapid Environmental Assessment (REA) checklist, photolog of field conditions and consultations, details on stakeholder consultations, Nepal environmental standards, template format of environmental monitoring report, the environmental audit report of existing facilities with corrective action plan, and details of electromagnetic fields (EMF) health effects.

II. POLICY, LEGAL, AND ADMINISTRATIVE FRAMEWORK

14. National (Nepal) Policies and Regulatory Framework. Nepal’s Constitution gives every citizen the right to live in a clean and healthy environment and it aspires towards provision for the necessary balance between environment and development. This began after the Seventh Five- Year Plan with its mentioning of obtaining Environmental Impact Assessment (EIA)/Initial Environmental Examination (IEE) approval for development works. The fourteenth plan has included the spirit of the United Nation’s Sustainable Development Goals by symbolizing these goals in projects right from the budget and programming stage. Likewise, the approach paper for the fifteenth plan (2019/2020 to 2023/2024) has given continuity to these goals with a long-term vision until 2043/2044 of accessible modern infrastructure and intensive connectivity for prosperity and a healthy, balanced environment for happiness. Under chapter 10 sub chapter 10.9 section 4.4-point number 2 mentions: Environmental Impact Assessment and Minimization as an irreplaceable part of infrastructure development to maintain balance with the environment with necessary laws. Its work plan denotes that firstly priority projects of society, province and local needs to include environmental management through its law, standards and implementation. Secondly, it talks about mainstreaming green economy.

15. The prevailing acts, policies, regulations and guidelines which are related to construction and operation of grid expansion and improvement projects in Nepal are presented in Table 1. Substations with voltage ratings of 132 kV and 220 kV or above and transmission lines exceeding 132 kV are required to conduct an IEE. Since three 220 kV substations are already existing it is not required to complete IEE to upgrade them to 400 kV. However, IEE will be required for the 132 kV underground transmission line. National IEE is currently being prepared and clearance will need to obtain prior to works.

16. Grid expansion and improvement projects financed by ADB are required to follow the World Bank Group’s Environmental, Health, and Safety (EHS) General Guidelines and EHS Guidelines for Electric Power Transmission and Distribution published by the International Finance Corporation, 30 April 2007.

Table 1: Relevant National and International Regulatory Framework for Energy Development Policies, Acts, Regulations and Issues Covered Guidelines Nepal Environmental Policy and Action NEPAP were endorsed to further institutionalize Plan (NEPAP), 2050 (1993) and 2055 environmental protection in the development processes (1998) through mitigating adverse environmental impacts. National Wetlands Policy of Nepal 2059 It ensures wise utilization of wetland resources and and 2069 (2003 and 2012) support for community dependent on such wetlands. National Park and Wildlife Conservation It addresses the conservation of ecologically valuable Act, 1973, Government of Nepal areas and indigenous wildlife. The Act prohibits trespassing in park areas, prohibits wildlife hunting, construction works in the park area, damage to plant and animal, construction of huts and houses in park area without permission of authorized persons. It lists 26 species of mammals, 9 species of birds, and 3 species of reptile as protected wildlife. Kathmandu Valley Development Authority It is considered as sole government authority, directly Act 2045 (1988) under the central government, to undertake and execute Integrated Development of Kathmandu Valley. Constitution of Nepal 2015, have made various provisions

Policies, Acts, Regulations and Issues Covered Guidelines and guidelines, which unequivocally authorize KVDA, as an apex planning body for KVDA, to execute Sustainable Development Master Plan (SDMP 2015-35) programs by avoiding any legal contentions. Environment Protection Act (EPA), 1997 The EPA and EPR are the key legal provisions governing and Environment Protection Rules (EPR), the environmental safeguards in Nepal. Section 3 of the 1997 (2053) EPA mandates project developers to carry out environmental assessment of projects at the level of IEE or EIA. It prohibits the implementation of any project without receiving environmental clearance from the government in the form of approved EIA or an IEE reports. Rules 2 and 3 of the EPR requires a project developer to carry out IEE or EIA for the type and size of projects as listed in the Schedule 1 or 2, respectively. Construction of substations with voltage ratings of 132 kV and 220 kV or above and transmission line exceeding 132 kV are required to conduct an IEE. Forest Act, 1993 (amendment, 2007), This Act requires decision makers to take account of all Government of Nepal forest values, including environmental services and biodiversity, not just the production of timber and other commodities. It includes several provisions to ensure development, conservation, management, and sustainable use of forest resources based on appropriate planning. Forest Rules, 1995, Government of Nepal These rules elaborate legal measures for the conservation of forests and wildlife. Tree cutting clearance is required from Department of Forest. Expenses incurred for cutting trees and transportation is to be borne by the infrastructure developer. Electricity Act, 2049 (1992) and Electricity Electricity Act, 2049 is related to survey, generation, Regulation, 2050 (1993) transmission and distribution of electricity. The Electricity Rule, 2050 emphasizes environmental analysis, which should include environmental mitigation measures to minimize adverse impacts likely to occur while developing hydro-electricity (Rule 12 and 13). Irrigation Rules, 2056 (1999/2000) It ensures protection of irrigation infrastructures from activities that pollutes water and destroys the infrastructure. Permission will be required from irrigation office for construction along the irrigation channel. Land Acquisition Act, 2034 (1977) It covers all aspects of land acquisition and compensation of land and other assets. It authorizes the government to acquire land for public purposes by providing compensation to the private landowners. Soil and Watershed conservation Act, The Act outlines the essential parameters necessary for 2039 (1982) proper watershed management. Ancient Monument Preservation Act, 2013 It was enacted to integrate the conservation and (1956) protection of ancient monument and archeological properties. The act mentions any ancient monuments and artistic objects of hundred years old shall be regarded archeologically important objects and Department of Archeology (DOA) shall preserve such objects. Solid Waste Management Act (SWMA) The SWMA has stipulated the requirements while 2068 (2011) managing the solid wastes in the city, towns or, industrial

Policies, Acts, Regulations and Issues Covered Guidelines as well as the workplaces of projects and their labor camps. Labor Act, 2049 (1993) This act specifies of age group of workers, work hours, wage and safety of workers. Buffer Zone Rules, 2052 (1996) It helps to promote activities that meet the basic needs of local people for firewood, fodder, timber, and grazing. National Environmental Impact It set out the process for the environmental review and Assessment Guidelines, 2050 (1993) management of infrastructure projects in all sectors and the respective roles of certain government agencies and project proponents. Boundary Wall Guideline, 2072 (2015) This is a post 2015 earthquake guidelines for urban areas to meet the boundary walls standard and safety. Buffer Zone Management Guideline, 2056 It provides a basis for operation of Buffer Zone program (1999) including resource allocation. Mainly associated with strict management and monitoring of land and natural resources use. Biodiversity Convention, 1992 It contains a series of far reaching obligations related to the conservation of biological diversity and sustainable uses of its components including requirements for environmental study. Convention in International Trade in It aims to control the trade of certain wildlife species to Endangered Species of Wild Fauna & prevent further endangered of their survival. Flora (CITES) United Nations Framework Convention on This framework came into force on 21 March 1994 and Climate Change (UNFCCC) aims to achieve stabilization of greenhouse gas (GHG) concentrations in the atmosphere at a level low enough to prevent dangerous anthropogenic interference with the climate system. SF6 is a GHG used in gas insulated switchgear. Convention on Wetlands of International It provides a framework for national action and Importance especially as Waterfowl international cooperation for the conservation and Habitat (Ramsar 1971) sustainable use of wetlands and their resources. This convention entered into force on 21 December 1975. Nepal has nine listed Ramsar sites that are all medium to large water bodies (each 90 ha or more in area). Convention concerning the Protection of It provides a framework for protecting cultural and natural World Cultural and Natural Heritage heritage of outstanding universal value through the designation of World Heritage Sites. Stockholm Convention of Persistent It ensures the environmentally sound management and Organic Pollutants (1972) the disposal of POPs including PCBs. Since 1990 NEA uses PCB free equipment, but existing equipment contaminated and cross contaminated with PCBs are also present in significant quantity.6 The convention gives governments until 2025 to phase out "in–place equipment" such as electrical transformers containing PCBs, as long as the equipment is maintained in a way that prevents leaks. It grants them another three years to

6 Ministry of Environment, Science and Technology. 2007. Nepal National Implementation Plan for the Stockholm Convention on Peristent Organic Pollutants (POPs). http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=12&ved=2ahUKEwj977HSmbjnAhX6IbcAHdAhAhoQFjALeg QIBBAB&url=http%3A%2F%2Fchm.pops.int%2FPortals%2F0%2Fdownload.aspx%3Fd%3DUNEP-POPS-NIP-Nepal- 1.English.pdf&usg=AOvVaw2MPE_oGx_2QphpT5NkRJZz

Policies, Acts, Regulations and Issues Covered Guidelines destroy the recovered PCBs. The recovered PCBs must be treated and eliminated by 2028. Basel Convention on the Control of This convention came into force on 5 May 1992 which Transboundary Movements of Hazardous aims to reduce the amount of waste produced by Wastes and their Disposal (1989) signatories and regulates the international traffic in hazardous wastes. Air, Water, and Noise Standards Presented in Annex 4

17. ADB Safeguard Policy and Requirements. ADB’s Safeguard Policy Statement (2009) has three key safeguards areas: environment, involuntary resettlement and indigenous peoples and provides the environmental requirements and review procedures of ADB. It aims to avoid project associated adverse impacts to both environment and affected people. In addition to this it aims to minimize, mitigate and compensate for such impacts and strengthen the borrower’s safeguards system.

18. At the project identification phase, ADB uses a categorization system to indicate the significance of potential environmental impacts and is determined by the category of its most environmentally sensitive component, including direct, indirect, cumulative and induced impacts within the project’s area of influence. The project categorization system is described in Table 2.

Table 2: Environmental Classification According to ADB Safeguard Policy Statement (2009) Category Definition Assessment Requirement A Likely to have significant adverse Environmental impact assessment (EIA) environmental impacts that are irreversible, diverse, or unprecedented, and may affect an area larger than the sites or facilities subject to physical works. B Likely to have adverse environmental Initial Environmental Examination (IEE) impacts that are less adverse than those of Category A. Impacts are site- specific, few if any of them irreversible, and in most cases mitigation measures can be designed more readily than Category A. C Likely to have minimal or no adverse No environmental assessment is required environmental impacts. but the environmental implications of the project will be reviewed. FI Project involves investment of ADB FIs will be required to establish an funds to or through a financial environmental and social management intermediary (FI). commensurate with the nature and risks of the FI's likely future portfolio to be maintained as part of the FI's overall management system. Source: ADB. Safeguard Policy Statement (2009), p. 19. http://www.adb.org/sites/default/files/institutional-document/32056/safeguard-policy-statement-june2009.pdf.

19. Category of the Project. The project has been evaluated considering the outcome of the ADB Rapid Environmental Assessment (REA) checklist and the same is enclosed as Annex 1. Under the ADB Safeguards Policy Statement (2009), the project is classified as “B” on environment requiring the preparation of IEE. Accordingly, this IEE has been prepared covering the components of the project.

20. IFC EHS Guidelines. The EHS General Guidelines (30 April 2007) will be applicable for this project. In addition, IFC EHS Guidelines for Electric Power Transmission and Distribution (30 April 2007) also need to be considered while designing the substation, transmission and distribution line components and undertaking the environmental assessment. The project is required to comply with these guidelines regarding impacts and management, performance indicators and monitoring. The project proponent/operator shall follow EHS Guidelines of IFC for this project and should also ensure that all appointed contractors / subcontractors follow the IFC EHS Guidelines.

21. International and Regional Treaties, Agreements and Conventions. Nepal is a party and signatory to several international and regional environmental treaties, agreements and conventions, to which the Ministry of Forests and Environment is the National Focal Point. A screening was carried out of these treaties regarding its applicability to this project. The interventions proposed under the project shall be implemented in compliance with applicable international/regional conventions and declarations (particularly those related to World Heritage Sites, Ramsar sites, PCBs and SF6 as detailed in Table 1) to which Nepal is a party.

III. DESCRIPTION OF THE PROJECT

A. Project Type and Project Components 22. The proposed project will complete the reinforcement and modernization of supply in and around Kathmandu. The project will also ensure that hydropower generation can be evacuated and transmitted to the critical areas in Kathmandu and outside load centers, and the excess traded with neighboring countries. This project will also begin strengthening the distribution system outside Kathmandu in a systematic and phased manner starting with areas where people are still without access to the grid power despite residing in close proximity, and those who have access face low quality and unreliable electricity supply. The project is aligned with the following impact(s): reliable and efficient electricity for all by 2030 achieved (National Energy Crisis Reduction and Electricity Development) 7; and energy trade infrastructure in SASEC countries improved (SASEC Operational Plan Update, 2016 – 2025). 8 The project will have the following outcome: access, reliability, efficiency of power supply in Nepal improved. The detailed output from the project are:

• Output 1: Power System Transmission Capacity Increased. The project will finance (i) upgradation of 3 substations to 400 kV from 220 kV in Khimti 1, Barhabise, and Lapsephedi in Bagmati Province to enhance capacity for evacuation of electricity from hydropower stations for domestic consumption and export excess electricity; and (ii) upgradation of existing 132 kV double circuit transmission lines from Pathlaiya substation to the Parwanipur substation in Province 2 (Figure A) by replacing the existing conductors with advanced and high capacity conductors, and a new 132 kV substation and associated facilities at Pokhariya in Province 2. The latter will especially help cater current unmet demand and support industrial corridor development located in Province 2 which is a priority of the government. • Output 2: Distribution systems in Kathmandu Valley, Bharatpur and Pokhara, and consumers’ awareness on energy efficiency and safety improved. This will include (i) construction of 12 kilometer underground 132 kV DC transmission line following existing roads from Bhaktapur substation to Koteshwor (Figure B), a 2 km long 66 kV transmission line following existing roads from Koteshwor to Baneswor (Figure C), and a new 132/11 kV substation with automation in Koteshwor in Kathmandu Valley in Bagmati Province; and (ii) modernization and reinforcement of Kathmandu Valley and Bharatpur distribution center in Chitwan district of Bagmati Province and Pokhara distribution center in Kaski district in Gandaki Province (Figure D) benefiting about 450,000 customers in total. Training and awareness programs will be offered targeting women and disadvantaged groups to promote awareness of electricity costs and practices for efficient electrical usage. • Output 3: Distribution Network in Province 2 Improved. The project will support network extension and reinforcement with construction of 33 kV, 11 kV, and 0.4 kV lines and substations to improve electricity supply quality and reliability to approximately

7 Government of Nepal, Ministry of Energy, Water and Irrigation. 2016. National Energy Crisis Reduction and Electricity Development 8 ADB, 2016. South Asia Subregional Economic Cooperation: Operational Plan 2016 - 2025. Manila.

850,000 customers in Province 2.9 It will also support development of women-led energy- based enterprises. Electric vehicle charging stations will also be installed under the project scope.

Figure A: Map of 132 kV Pathlaiya-Parwanipur Transmission Line

9 This component will complement improvements to mechanized irrigation in Province 2, by providing reliable power supply to a project currently being processed by Environment, Natural Resources and Agriculture Division of ADB’s South Asia Department.

Figure B: Bhaktapur-Koteshwor Underground Transmission Line (Topographic)

Figure C: Koteshwor-Baneshwor 66 kV Underground Transmission Line (Topographic)

Figure D: Proposed Route for Underground in Pokhara Lakeside Area

B. Nature, Size and Location of Project Facilities 23. The scope of each component of the project is described in following sections. These components of the project will be implemented under various contract packages. The components of the project to be covered are mentioned in below section.

24. The project area of influence will be related to existing sites except for the network extensions works (substations and distribution lines between 0.4 to 33 kV) under Output 3, 12km (132 kV) and 2km (66 kV) of underground transmission line for Output 2, and new substations related to Outputs 1 to 3 (Table 3). The total footprint of the project outputs can be summarized in Table 3.

Table 3: Project Components and Footprint Output Project Status Total Area, ROW Remarks Components approx. (ha) 1 Khimti 1 SS Existing The substation will be constructed upgrade to 400 on existing NEA land, existing kV area of under construction New Khimti substation (Annex 6) will 0.5 be used for upgradation work and no additional land will be acquired. Previously was agricultural and residential land. 1 Barhabise and Existing The substations will be Lapsiphedi SS constructed on existing NEA land, upgrades to 400 substations will be upgraded kV within the existing area of under 2 construction substations (Annex 6) and no additional land will be acquired. Previously was agricultural and residential land.

Output Project Status Total Area, ROW Remarks Components approx. (ha) 1 12 km 132 kV TL Existing Existing towers are to be used upgrade from and new cable wire will be Pathlaiya to replaced within existing ROW Parwanipur (Map A). Therefore, no additional tower construction is required. 18m 21.6 Existing line was installed 5 years ago. NEA currently cut back vegetation annually along their existing 18m right of way including where it crosses the Parsa National Park. 1 132/33kV SS at New Land acquisition required. Pokhariya and Selected location in open 1.014 Associated agricultural farming land and Facilities connected existing gravel road. 2 12 km 132 kV TL New To be constructed following the underground from existing road for ROW from Bhaktapur to Bhaktapur to Koteshwor (Map B). Koteshwor Along the route specially in 18m 21.6 Koteshwor area is crowded during peak hour and small business and street vendor are operating their activities. 2 2km 66 kV New Following the existing major road underground TL from Koteshwor to Baneshwor from Koteshwor including Baneshwor commercial 7m 1.4 to Baneshwor area, the existing road alignment and road edge will be used (Map C). 2 New SS in New The substation will be constructed Koteshwor on existing government land, land 132/11 kV required for substation construction will be acquired from CAA, which is a government entity. The area proposed for construction is within the premises of Tribhuwan 0.203 International Airport, where private activities are prohibited. Required land will be provided to NEA for substation construction after finalization of Master Plan of Tribhuwan International Airport area. No structures will need to be demolished or shifted. 2 Under In 5 DC11 40% of lines that run 1,160 km of 11 existing along the major existing roads kV Lines in 4.5 m 522 DCS planned to be underground with Kathmandu network other lines reinforced and

11 There are nine distribution centers in Kathmandu Valley, namely Jorpati, Baneswor, Balaju, Kuleswor, Kirtipur, Lagankhel, Pulchowk, and Bhaktapur. 5 of the 9 (Baneshwor, Kuleshwor, Balaju, Kirtipur and Jorpati) are included by NEA in the project scope for reinforcement and modernization as assessed in this IEE. Lagankhel, Pulhowk, and Bhaktapur are included in scope of network reinforcement in the Lalitpur and Bhaktapur Districts.

Output Project Status Total Area, ROW Remarks Components approx. (ha) Valley10 and upgraded with covered conductor Bharatpur of ABC cables. 70% of lines in Lalitpur District, Lagankhel and Pulchock areas, to be underground. Lines in and Bhaktapur to be undergrounded with other lines reinforced and upgraded with covered conductor. In Bharatpur of Chitwan District 90% of the lines running along the major roads are planned to be undergrounded with other lines reinforced and upgraded with covered conductor or ABC cables. 2 Under In 5 DC (footnote 11) 40% of lines existing that run along the major existing DCS road planned to be underground, network other lines reinforced and upgraded with covered conductor of ABC cables. 70% of lines in 2,560 km of 0.4 Lalitpur District, Lagankhel and kV Line in Pulchock areas, to be Kathmandu underground. Lines in and 3m 768 Valley (footnote Bhaktapur to be undergrounded, 11) and other lines will be reinforced and Bharatpur upgraded with covered conductor. In Bharatpur of Chitwan District 90% of the lines running along the major roads are planned to be undergrounded, other lines will be reinforced and upgraded with covered conductor or ABC cables. 2 8 km of 11 and 0.4 Under Lines running along the major kV line in Pokhara existing tourist area of Pokhara lakeside Lakeside DCS are planned to be underground, 4.5m 3.6 network the existing road will be followed at least 50m from the lake edge (Map D). 3 10 new 33/11 kV New Constructed in six districts: Parsa, substations in Dhanusha, Mahotari, Saptari, Province 2 Siraha and Rautahat. One (Lohana, Dhanusha) will be constructed on 5.0712 NEA’s own land. For remainder land acquisition required. Selected locations in open agricultural land and all are connected with an existing gravel or black topped access road. 3 300 km13 of 33 kV Partial It is estimated that approximately 7m 210 Line in Province 2 extension, 7,500 number of 11m high poles

10 Project Proposal, NEA, May 2019, page 12, section 6.5. 12 Approx 15 kattha land will be acquired and 1 kattha is equivalent to 338m2 13 Project Concept Paper, SASEC PTDSSP, April 2019

Output Project Status Total Area, ROW Remarks Components approx. (ha) Partial for 33 kV lines will be erected or over replaced existing line 3 750 km of 11 kV It is estimated 18,750 number of Lines in Province 9m height distribution poles will be 2 Partial erected or replaced. extension, New distribution lines will connect Partial households previously with no 4.5m 337.5 over electricity and will be primarily existing along roads, but in certain line circumstances the new lines may need to traverse agricultural lands.

3 1,500 km of 0.4 Partial kV Line in extension, Province 2 Partial 3m 450 over existing line Total Footprint 2,344.49

C. Design Principles and Construction Methods 25. The project activities for substation works will include clearing of the project sites, earth works, civil works, staging and transportation of equipment, installation of buildings and equipment, setup of temporary labor camps, and the storage of equipment, fuels, oils, and chemicals.

26. The new and existing substations sites in Kathmandu Valley of Bagmati Province, except Koteshwor which is owned by Civil Aviation Authority (site is yet to be determined), are within NEA’s existing land ownership. The other substations of Province 2 except Lohana, Dhanusha will require land acquisition. Substations in Kathmandu are to be gas insulated substation (GIS) due to space constraints.

27. For the distribution lines of 0.4 to 11 kV Electricity Regulation 1993 Schedule 13 requires the minimum distance of wires to trees or house to be 1.25 m and from 11 to 33 kV a distance of 2 m is required. Therefore, the ROW needs to be taken for 33 kV, 11 kV and 0.4 kV as 7 m, 4.5 m and 3 m respectively. For 132 kV overhead transmission line (TL) a ROW of 18 m will be necessary.

28. New and existing transmission line works will involve staging and transportation of equipment, unrolling of cables, and installation. For underground transmission lines, earthworks/drilling will be involved. Without the use of construction cranes, the fitting of the insulators and stringing of conductors will be carried out manually on the towers as per design requirements. Transmission lines uses two types of towers: tension towers (which are used for angles in the transmission line alignment) and suspension towers (which are used for straight segments of line). The stringing process will use series of pulleys on transmission towers between tension towers where a guide rope or wire will pass from one end of the segment through the successive pulleys until the other end of the segment is reached. This is done by traversing the ROW either manually or with a tractor/truck. The conductors attached to one end of the guide

18 rope are pulled using a powered winch. Following this they are mechanically drawn to the design tension and attached to the insulators with minimal impact on vegetation in the ROW. The process of stringing the cables will engage crew members ranging from 25 to 40 people with multiple groups posted along the alignment, requiring construction staging areas and camps for one month.

29. New and existing distribution line works will involve staging and transportation of equipment, unrolling of cables, and installation. For underground distribution lines, earthworks/drilling will be involved. Most of the existing distribution lines are mounted over concrete or tubular steel poles and in some cases wooden poles. The distribution line work will start with surveys to identify and locate poles and transformers along the route alignment adhering to the electricity rules and EHS Guidelines on Transmission and Distribution e.g. installation of above or adjacent to residential properties or other locations intended for highly frequent human occupancy (e.g. schools or offices) should be avoided. This will be followed by surveys to ascertain the need to clear the ROW that may have vegetation to be trimmed etc. Any temporary labor camps will be setup and equipment (distribution poles, lines and transformers) will be transported to the project construction site and temporary traffic diversion put in place. Digging of any foundation pits is done manually using auguring tools, concrete mixture for foundation is cast, and poles are unloaded for erection which is done using chain and pulley blocks. Then the pin insulators are mounted and stringing of wires is done with correct sag to maintain prescribed ROW. For underground lines, radar systems are used to identify other utility structures under the ground and using a drilling technique a micro tunnel is bored through the ground using a boring machine. The cables are cast into the ground using conduit carried over a vehicle. Finally, the transformers are installed on single, double or four pole structures or ground mounted for underground distribution lines, for which earth works are required.

30. The size of construction crew depends upon site conditions, the volume of works and techniques. Typically, a crew of 15 to 20 people will be employed and around 2-3 weeks will be needed for the construction of 1 km of 11 kV or 0.4 kV line however boring technique using modern equipment will take less time.

D. Existing and Associated Facilities 31. The project involved rehabilitation and upgrading work within existing facilities. The substation upgradation work proposed under Output 1 i.e. upgradation of substations to 400 kV from 220 kV in Khimti 1, Barhabise, and Lapsephedi substations are classified as existing facilities as per ADB SPS 2009. An environmental audit of these three substations (existing facilities) has been undertaken. The Audit Report is provided in Annex 6.

32. There are no associated facilities connected to the project.

E. Alternatives to the Project 33. There are no current practical alternatives to the project in Nepal for demand and supply economics of energy other than having consumers producing their own energy in isolation. Upgradation of exiting substations together with distribution centers in the valley are a prerequisite.

34. The proposed gas insulated substations (GIS) have a smaller footprint compared to the air insulated substations (AIS) which is necessary as there is lack of space in the metropolitan area of Kathmandu as well as the suburbs because of rapid urbanization and high value of the price of land. Therefore, GIS that occupies small space and can be proposed as a better

19 alternative. AIS in Province 2 are being constructed on open cultivated land without the same space constraint.

35. Undergrounding the distribution lines and using aerial bundled cables (ABC) in the overhead lines will reduce the system footprints, improve public safety and increase aesthetic values.

36. No Action. In the no project scenario, the power system will continue to experience operational difficulties which will multiply as a result of higher demand by consumers and energy production by new hydro projects. This may ultimately result in increase in power cuts, power related fire hazards, increased human casualties, increase in carbon emissions by diesel generators and ultimately financial losses.

F. Cost and Implementation Schedule 37. The total cost estimate for the project is $322.0 million. ADB will provide $200 million through its ordinary capital resources (OCR) facility. The project will be implemented progressively over five years with completion date by December 2025.

G. Project Benefits 38. The successful implementation of the project will involve the rehabilitation, augmentation and the expansion of the power transmission and distribution system and will improve reliability of supply to residential and commercial customers of NEA. The project will provide benefits of reliable, better quality power supply with safety and better aesthetic environment. Moreover, it will create short term employment opportunities.

IV. DESCRIPTION OF THE ENVIRONMENT

A. Project Area 39. The project outputs are located in three provinces namely Province Number 2, Bagmati Province, and Gandaki Province of Nepal. Khimti 1, Barhabise, Lapsephedi, and Bharatpur sites are located in Bagmati Province. In Province 2 project components are located across the south eastern parts of the Nepal and in Gandaki Province the project components are located in Pokhara. Project location maps are presented below between Map 1 to 7.

40. Kathmandu Valley and three substation sites i.e. Khimti 1, Barhabise, and Lapsephedi are located in Central Region of Nepal in Bagmati Province with the valley surrounded by Shivapuri, Chandragiri and Phulchouki Ranges at the confluence of Kathmandu, Lalitpur and Bhaktapur Districts. The elevation here varies from 457 to 2,732 metres above sea level (masl) experiencing warm temperate climatic conditions. It receives mean annual rainfall 1,400 millimeter (mm) mostly concentrated between the months of June to September. The substations close to Kathmandu valley (Khimti 1, Barhabise, and Lapsephedi) are at 1,600 masl for Lapsiphedi of Kathmandu District, 1,415 masl for Barhabise of Sindhupalchowk District, and 663 masl for Khimti 1 of Ramechhap District. Bharatpur Metropolitan city where the distribution network will be modernized is spread over 432.95 km2 area with a population of 280,502 in the Inner Terai region and 150km south west of Kathmandu. The city is in flat terrain at an altitude of 203 masl where the project component benefits 450,000 customers (this figure includes NEA’s distribution centers reach beyond the urban areas).

41. Likewise, Province 2 comprises of districts of Parsa, Bara, Rautahat, Sarlahi, Mahottari, Dhanusha, Siraha and Saptari with the elevation range varying from 60 to 1,000 masl with flat plains towards its south, Bhabar Zone followed by Shiwalik Hills or Chure Range towards its north. It is the smallest province of Nepal bordering India to its south, Province 1 to its East, Province 3 to its north and west. It experiences tropical to subtropical climatic conditions with mean annual rainfall varying from 1,500 to 1,938 mm which concentrates in four monsoonal months.

42. Tourist destination area covering periphery of Phewa Lake of Pokhara Metropolitan City of Gandaki Province will be undergrounded in observation of potential increase in demand for load and improving the aesthetics of the area.

43. There is a very limited data on existing environmental conditions of Kathmandu Valley and other project sites. However, based on environmental performance index produced by Yale University Nepal ranks 176 out of 180 this value indicates a drop in environmental quality since 2016 from 149. Air pollution studies done in Kathmandu indicate it to cross international standards by 2/3-fold a major contributing factor of it being automobiles, limited road infrastructure, poor quality of fuel and inefficient transport management14. Based on a report published by IQ Air Visual for 2018, Kathmandu ranks as one of the 100 most polluted cities in the world.

B. Geography, Geology and Soil 44. Kathmandu Valley and its surrounding project sites are located in the mid hills’ region of Nepal. The valley is 30 km East to West and 25 km North to South with surrounding mountain ranges composed of sedimentary and metamorphic rocks with gneiss and migmatites15. The

14 https://www.researchgate.net/publication/242311472_Air_Quality_Management_in_Kathmandu 15 Stocklin, J. (1980). Geology of Nepal and its regional frame. Journal of Geological Society of London, 137, 1-34.

21 valley basin consists of Plio-Pliestocene fluvial, fluvial lacustrine and fluvio-deltaic sediments16. It is drained by Bagmati River with Bishnumati, Dhobi Khola, Manhara, Hanumante, Godawari, Kodku, Nakhu, and Balkhu Rivers as its main tributaries. The River Flood Plains here consists of sand, silt and clay. Based on study done for shallow well water levels within 100 m of the rivers, it was observed that levels varied from 0 m to 15.7 m of depth with the Nakkhu Khola corridors having the least depth and Kodku as well as Dhobi Khola with the highest values (Observations were made in both wet and dry seasons)17. Therefore, for underground works operation and maintenance phase impacts of these volatile ground water levels at these river corridors need to be taken into account. Major soil types found in the valley includes Dystrochrepts, Halpumbrepts, Haplustalfs-calcarious Materials, Hapludalfs, Rhodustalfs, Haplaquepts, Dystrochrepts, Haplaquents and Udipsamments. Major soil types found in Pokhara along the Lakeside area consists of Rhodustalfs, Dystrochrepts and Haplustalfs. A nonmetallic mineral resource is located 176 m south (location as Pumdibhumdi and status as showing and mining west from current distribution Sahidchowk feeder near Komagane Friendship Park of Pokhara Lekhnath Metropolitan Ward Number 6).

45. The substation site of Lapsiphedi consists of higher Himalayan crystallines with soil type of Dystrochrepts, Halpumbrepts, Haplustalfs with calcareous materials, the Barhabise and Khimti 1 site consists of Kuncha Group consisting of Precambrian mainly flychoid sequence, locally shallow water quartzite beds and basic sills and dykes. The soil types in both these substations consist of Dystrochrepts, Hapulstalfs and Rhodustalfs. Similarly, Bharatpur’s Geological settings consist of Sub Himalaya with Quarternary Alluvial deposits of Dun Basin. The soil types found here consists of Dystrochrepts, Eutrochrepts and Argiudolls.

46. The Physical Geography of Province 2 includes from Gangetic Plains to the south (known as Terai) to the Sub-Himalayan Zone of Shiwalik Group to the north. The Shiwalik Range is delimited by two fault tectonic lines: at its south by Main Frontal Thrust and to its north by Main Boundary Thrust. The Gangetic Plains consists of Quaternary Alluvial River Deposits; the Shiwalik Group consists of Middle-Miocene to Plio-Pliestocene molassic fluvial deposits, conglomerates, sandstone and shale with vertebrate fossils. The Terai region can be further classified as Northern Terai or Bhabar Zone, Middle Terai Zone and Southern Terai Zone. Bhabar Zone starts at the foothills of Shiwalik and may extend up to 12 km south. It consists of boulder, pebbles and cobbles made of sandstones and rocks of Shiwalik. It is known as the recharge zone of ground water of Terai area. Middle Terai Zone consists of pebbly and brown to grey colored unconsolidated sandy sediments with few clay partings. This zone comprises of spring lines, natural ponds and lakes together with artesian layers. It may extend from 10 to 12 km north to south. Finally, the Southern Terai Zone consists of main sediments of Gangetic Plain comprising sand, silt and clay which extends till the Indian border to its South. Here the water table is 3 m below the surface. The soil types found here includes Udorthents, Ustothents, Haplaquants, Haplaquepts and Eutrocrepts. Province 2 has mineral resources such as Clay, Silica, Sand and Thermal Springs18 which are shown in relation to SS sites in Map 2d. Details of project locations selected in Province 2 for distribution are shown in map 2a to 2s.

C. Seismology

47. According to the approved IEE of the government for the Tamakoshi to Kathmandu Line, including its substations, the project area is located close to the 2015 Gorkha Earthquake

16 Yoshida, M., & Igarashi, Y. (1984). Neogene to quaternary lacustrine sediments in the Kathmandu Valley, Nepal. Journal of Nepal Geological Society, 4, 73-100. 17 Bajracharya, R., Tamrakar, N. K., Shrestha, M., & Bohoara, B. (2018). Status of shallow wells along major rivers of the Kathmandu Valley, Central Nepal. Journal of Nepal Geological Society, 56, 31-42. 18 Department of Mines and Geology, Ministry of Industry, Government of Nepal, Lainchaur Kathmandu.

22 epicenters, especially the substations of Khimti 1 and Barhabise. Other than Province 2, the project sites are located in areas of seismic zone factor 1 indicating an unsatisfactory zone. However, the report further mentions that the areas are not in the most dangerous zones of Nepal. Province 2 lies in 0.9 and 0.8 zonation factors. The elevation profile for transmission line of Pathlaiya Parwanipur 132 kV varies from 157 to 97 masl (Figure 1).

Map 1: Project Locations for PTDSSP

Map 2: Project Location of Province 2

Parsa Valmiki Corridor for Tigers

Map 3: Project Location of Province 2 Distribution Sites

Map 4: Project Location Segment 1 of Province 2 Distribution Sites

Map 5: Project Location of Province 2 Segment 2 Distribution Sites

Map 6: Project Location of Province 2 Segment 2 Distribution Sites

Map 7: Project Location of Province 2 in relation to Mineral Resources

Figure 1: Elevation Profile of Pathlaiya Parwanipur 132kV TL

Pathlaiya SS

Parwanipur SS

D. Climatic and Meteorological Conditions 48. The Kathmandu Valley area is in a warm temperate climate with dry winter and warm summer. The average monthly temperature ranges from below 8.79°C in January to 21.46°C in July19 (see Figure 2). Average monthly rainfall amounts to 155.24 mm; the monsoon season accounts for about 80% of annual rainfall, with monthly rainfall exceeding 200 mm from June to September (see Figure 3). The average monthly wind speed for the three stations was observed to be 3.74 kilometer per hour (km/h) from March to August and lowest to 2.39 km/h in December (Figure 4). The highest wind speed is recorded in Nagarkot station is 6.1 km/h in April. Bharatpur Metropolitan City experiences warm temperate climatic conditions (Koeppen Climate Class) with dry winter and hot summer where average temperature ranges from 15.5°C in January to 29.17°C in May and receives an average monthly rainfall of 158.4 mm. The average monthly wind speed recorded here is 2.88 km/h with the highest of 4.68 km/h in the month of May.

19 MoFSc, D. (2005). District-wise Watershed Information Book. Kathmandu: His Majesty's Government, Department of Soil Conservation and Watershed Management.

Figure 2: Temperature Variation in Kathmandu Valley 25

C o

Monthly Temperature Monthly 5

Figure 3: Average Seasonal Temperature in Relation to Elevation in Kathmandu Valley

Naglebhare-East Baad Bhanjyang-West Source: Google

Figure 4: Mean Monthly Precipitation Variation in Kathmandu Valley 600

500

400

300

200 Precipitation (mm) Precipitation

100

Figure 5: Mean Monthly Wind Speed in Kathmandu Valley 7

3 Wind Speed Wind

49. The Mean Temperature variation in Province 2 varies from 14°C in January to 27°C in May (Figure 6 and 7 for 2005 and 2017 respectively). The average monthly precipitation is 150.35 mm. and mean monthly wind speed being 4.3 km/h (Figures 8 and 9). The figures do not represent the extreme values in the site. On 31 March 2019, districts of Bara and Parsa (Two western districts of Province 2) received extreme wind storms (preliminary findings of Department of Hydrology and Meteorology indicate a first recording of tornado in Nepal) killing 27 people, destroying 400 houses and uprooting of 2,000 electric poles, damaging transformers as well as 132 kV cross border Raxaul-Parwanipur and 33 kV Raxaul-Birgunj Power Lines from India, 66 kV Parwanipur- Birgunj and 33 kV Birgunj-Kalaiya Transmission Line causing 900 thousands to 1.4 million USD in losses to NEA20.

20 Press Release by NEA April 2019.

Figure 6: Mean Monthly Temperature Variation in Province 2 30

C o 20

Monthly Temperature Temperature Monthly 5

Figure 7: Mean Seasonal Temperature Variation in Relation to Elevation in Parsa District of Province 2

Border with India-South Siwalik Region-North Source: Google

Figure 8: Mean Monthly Precipitation in Province 2 600

500

400

300

200 Precipitationmm 100

Figure 9: Mean Monthly Wind Speed in Province 2 7

2 WindSpeed km/h 1

E. Air Quality

50. The ambient air quality of Kathmandu (Figure 10) for PM2.5 drops below WHO guideline levels and National standards levels only between May and September. The air quality varies throughout the day with two high peaks at 9 am and 6 pm. The world air quality report ranks Kathmandu as among one of the 100th most polluted cities in the world. Major source of air pollution here are vehicles, brick industry, burning of biomass and solid wastes. The median values of PM2.5 vary from a minimum of 13 µg/m³ in the month of May to 119 µg/m³ in the month of February.

Figure 10: Indoor Particulate Matter levels from December 2017 to December 2018 Govt. Standard 40 Âµg/mÂ³ WHO Standard 25 Âµg/mÂ³

500 14.0 450 12.0 400 350 10.0 300 8.0 250 (Âµg/mÂ³) 6.0

2.5 200

PM 150 4.0 100 2.0 50

0 0.0 Number of Observations in Thousands in Observations of Number

51. There is no proper documentation of the air quality of Province 2. Based on real time air quality data from west to east it is observed that the PM2.5 varied from 35.2 µg/m³ in Birgunj of Parsa District, 38.5 µg/m³ in Janakpur of Dhanusha District to 38.9 µg/m³ in Rajbiraj of Saptari District (Figure 11).

21 Figure 11: PM2.5 levels at Major Cities of Province 2

21 https://www.airvisual.com/earth

F. Water Resources 52. Kathmandu Valley lies in the Bagmati Basin it is drained by River Bagmati with its 8 main tributaries. The main source of its tributary lies in Bagdwar at Shivapuri Nagarjun National Park and acts as a main source of drinking water supply to Kathmandu of which 80% gets diverted during dry season. Moreover, the Water Supply Reservoir produces 640 kW power through a mini hydro-power plant. According to Department of Hydrology and Meteorology’s (DHM) study the discharge in the river has been decreasing for last 25 years. Despite these extreme events of rainfall associated with floods have been recorded during the periods of 1993, 2002, 2004 and 2018. Some major cause has been unplanned settlements and encroachment of river flood plains.

53. Based on studies done by DHM and the High-Powered Committee for Integrated Development of the Bagmati Civilization (HPCIDBC) water quality has been deteriorating even in upstream sections of the river. Urban domestic sewage is currently directly disposed in the river system in the valley this has resulted in deterioration of the water quality with dissolved oxygen varying between 1 to 7 mg/l in the upper section after flowing out of Sundarijal while in the lower reaches it drops down to 0 mg/l. Likewise, chemical oxygen demand levels are highest in Bishnumati and Dhobi Khola22. This is mainly because of the industrial effluents discharged into the river.

54. However, ADB is funding revitalization of the river through the Bagmati River Basin Improvement Project which will increase water availability and reduce water induced disaster impact. Moreover, the 640-kW mini-hydro plant (that was built 88 years ago) is also being rehabilitated by ADB.

55. The other substation sites in Province 3 are in Koshi Basin along the catchments of River Melamchi, River Bhote Koshi and River Tama Koshi for Lapsiphedi, Barhabise and Khimti 1 Substations. Water quality for these rivers has been observed to be unpolluted, nevertheless dumping of domestic solid waste in rivers have been seen23. Bharatpur Metropolitan City lies in the bank of Narayani River known to be the deepest river in Nepal which is a popular destination of river rafting that begins 150 km north from Trishuli. However, discharge of industrial wastes into the river have been polluting the river24.

56. Province 2 lies in Bagmati and Koshi Basin which is drained by Bagmati, Kamala and Koshi as major river systems. Bagmati and Kamala originate in Mahabharat Range while Koshi originates from high Himalayas. The water of these rivers is used for irrigating cultivated land and is also known for causing floods during monsoon season. Other rivers include Pasaha, Lalbakaiya, Lakhandehi, Jhim, Puljor, Rato, Badhari, Basai, Aurahi, Jaladh, Jagardar, Jihi, Baluwa, Dima, Bataha, Ghurmi, Minawati, Gagan, Amaha, Baburam, Balan, Surunga, Chapin, Khardk, Lakeshwar, Devdhar, Kajara, Mutni, Khodo, Kaliya, Mahuli and Saptakoshi. These rivers originate in the Shiwalik hills. Major environmental issue here includes illegal mining in rivers which increases the risk of flood induced disaster. Ground water is used as a major source of drinking water in the rural areas of Terai region. The ground water quality in Bara, Rautahat, Sarlahi, Dhanusha, Siraha and Saptari Districts has been reported to have Arsenic between 10- 50 µg/l and even more25.

22 EIA Report of BRBIP, 2013 ADB. 23 IEE Report of Tamakoshi Kathmandu 400kV TL Project, 2016 NEA. 24 Sah, S. K., Acharya, P., & Lance, V. A. (2002). Effect of Industrial Pollution on Fish in the Narayani River, Central Nepal. Nepal Journal of Science and Technology, 4(1), 4-14. 25 Thakur, J. K., Thankur, R. K., Ramanathan, A., Kumar, M., & Singh, S. K. (2011). Arsenic Contamination of Ground Water in Nepal-An Overview. Water, 3(1), 1-20.

G. Cultural Resources 57. Kathmandu Valley is an ancient city of Newari speaking people with numerous temples, stupas and waterspouts moreover it has seven UNESCO Cultural World Heritage Sites. Three distribution centers namely Baneshwor, Balaju and Jorpati serve areas of Pashupati, Swyambhunaath and Boudhanath Monument Zones of Heritage sites. The rich architectural structures date back to Kirat and Licchavi era with one waterspout dating back to 650 CE. The city’s cultural festivals and religious rituals are mostly celebrated around water. Some important religiously as well as culturally important structures of Kathmandu Valley includes in Bhaktapur District (Bhadgau, Durbarchowk, Nayatpoldewal, Bhairavnath Mandir, Datatraya Mandir, Nawadurga Mandir, Pashupatinath of Bhadgau and Siddhapokhari), in Kathmandu District (Taleju Bhawani of Hanuman Dhoka, Hanumandhoka Mandir, Akash Bhairav, Annapurna, Kumari Bahi, Swetakali Nardevi, Sobha Bhagwati, Bhadrakali, Naxal Bhagwati, Kothe Shimbhu, Narayanhiti Narayansthan, Matsyendra Bahal, Jaggannath, Blkranseel Mahabir, Kastamandap, Narayanhiti Durbar, Singhadurbar, Sahid Smarak, Sundhara, Rani Pokhari, Tudikhel, Pashupatinath, Guheshwori, Baudhanath, Swayambhu, Manjushree Chaitya, Changu Narayan, Dhanju Stup, Charmurti, Budhanilkantha, Bagh Bhairav, Panchakanya Devi and Gokarneshwor Mahadev and in Lalitpur District (Degutale, Krishna Temple of Durbarsquare, Matsyendranath Mandir of Durbar Square, Minnath, Harinarayan Mahabir, Hiranyawarna Mahabir, Mahabaudha, Kumbeshwor and Four Stup in four corners of Lalitpur City constructed by King Asoka)26. Major culturally important places in Bharatpur include Devghat (lies 8km north west of the border with the city).

58. For Province 2 Janakpur is an ancient city of Maithili speaking people with rich tradition of art and the city has religious significance for its Janaki Temple. This temple was constructed by King Pratap Narayan Singh in 1911/12 major ponds of religious significance here includes Ganga Sagar, Dhanushar and Aragja. Other major areas of cultural significance are Dhanusadham and Gadhimai Temples of Dhanusha and Bara Districts which are visited by large number of pilgrims even from across the border. An excavatory works are being carried out in Khalte Danda (Hill) in Siraha District by DOA where any construction works will need permission from DOA.

59. Pashupati Bhandarkhal. Bhandarkhal is a wooded park west of Pashupati temple complex, south of Jaybageshwari Temple and west of Gaushala (Appendix 1 Photo 1 and 2). The word means a treasury garden with a rectangular shape. Based on studies done about the inscriptions of Lichavi era suggests these parts known as Deopatan above the temple to be densely occupied by shrines and residences of 5th century CE and even visited by Mauriyan Emperor Ashoka. Archeological Geomagnetic Survey was done here in 2014 and 2015 which indicated of trenches where wall features were robbed. Also, several pieces of pottery and other cultural materials belonging to Lichivi era have been discovered here through samples of auger cores27.

26 Department of Archeology, Government of Nepal. 27 Coningham, R., Acharya, K., Davis, C., Manuel, M., Kunwar, R., Hale, D., et al. (2016, June). Exploring Ancient Pashupati: Preliminary Results of Archelogical Surveys and Excavations at Bhandarkhal, Kathmandu Valley UNESCO World Heritage Property (Nepal). Ancient Nepal(191-192), 94-112.

Photo 1: Left Side Boundary of Pashupatinath and Right side of the Road Bhandarkhal the line is in Proposed Core Zone

H. Biological Resources 60. The areas with importance of biodiversity in Kathmandu Valley are Gokarna Forest, Shivapuri Nagarjun National Park (SNNP), and the Godavari Forest. The SNNP was established in 2002 and has importance for conservation of watershed that drains the Valley. SNNP (15,900 ha at elevations ranging between 1,366 – 2,732 meters above sea level) and Phulchoki Mountain Forest (5,000 ha between 1,400 – 2,800 meters above sea level) both have been categorized as ‘Important Bird Areas’ by Birdlife International. There are settlements inside the park and cultivated land occupies 9.7% of the land of SNNP with 31.7km of Road Network. Because of settlements cutting of trees for firewood takes place inside the park as a result of this the vegetation is not mature. Vegetation below 1,800 masl in southern aspect here includes Pinus roxburghii, Schima wallichii and Castonopsis indica forest along the riverbanks Alnus nepalensis dominates and in the upper reaches of the hills Quercus semecarpifolia, and Rhododenron forest are abundant. Wildlife under protection found there includes Leopard Cat (Prionailurus bengalensis), Clouded leopard (Pardofelis nebulosa), Assamese monkey (Macaca assamensis), Chinese pangolin (Manis pantadactyla) and Indian pangolin (Manis crassicaudata). Some significant rare species of biological importance recorded here includes Ypthima confuse (an endemic butterfly of Himalayan regions of Nepal), Papilo Krishna (a rare butterfly), Troides aeacus (an IUCN Redlist species) and Epiophlebia laidlawi (a relict Nepal dragonfly whose nearest single species survives in Japan)28.

28 Saville et al. 1990 Ref Baidya Bidur 2004, Habitat Himalaya Vol XI No III.

Figure 1: Settlement inside SNNP

61. The SNNP’s history starts with constituting Shivapuri Watershed in 1976 upgrading it to Protected Watershed Area in 1982 then Watershed and Wildlife Reserve in 1984 and finally to National Park in 2002. Between 1985 to 1997 it received US$ 4.8 million under the Shivapuri Integrated Watershed Development Project which included 114 km long boundary wall, 95 km long road, 82 km of trail improvements, 20 guard posts, 30 cottages, 2,684 ha of reforestation, 106 check-dams and 12 gully control. According to a survey done in 1992 the boundary walls had numerous illegal entry points mostly near farms or houses and concluded that in the forests between 1,750 to 1,900 masl the wall should be of uniform height with guard posts to be effective in reducing human wildlife conflict. The park is not a pristine protected area, ADB’s BRBIP includes positive interventions to revive the recharge potential of the watershed area inside the National Park boundary. Bharatpur borders to its south with Chitwan National Park, which partly spreads to Province 2 (15% in Parsa District and the forest of the park continues in Parsa District as Parsa National Park) as well and the biological importance is described in following paragraphs.

62. In Province 2 protected areas include Chitwan National Park, Parsa National Park and Koshi Tappu Wildlife Reserve. The forest area found here includes Acacia catechu forest, Shorea robusta forest and grasslands. Based on Terai Forest Resource Inventory done by the government in Province 2 major forest area extends from Nirmalbasti of Parsa District in the West to Koshi River in the East. It lies in the northern part of Terai Region which exists as numerous small as well as large unconnected patches. The ecological classification of these forests is categorized as Chir Pine forests in northern parts of Siwalik Region, towards its immediate south by Sal Forest and further south as Tropical Mixed Hardwood Forest with Riverine Forests along the rivers running through these forests.

63. Chitwan National Park. It is the first national park gazetted (1973) in Nepal located in the Inner Terai Region which was designated as a Natural World Heritage Site in 1984, the national park spreads over Chitwan, Makwanpur, Parsa and Nawalparasi Districts. During its establishment it occupied 932 km2 which has increased to 952.63 km2 and occupies areas of Shiwalik Hills, Rapti, Narayani and Reu Rivers. Major vegetation found here includes Riverine, Subtropical and Tropical Forests (70% of the park constitutes Shorea robusta forest). Wildlife of conservation importance found here includes One Horned Rhinoceros (Rhinoceros unicornis),

Royal Bengal Tiger (Panthera tigris), Asian Elephant (Elephas maximus), Wild Water Buffalo (Bubalus arnee), Gray Wolf (Canis lupus), Pangolin (Manis crassicaudata), Four-horned Antelope (Tetracerus quadricornis), Swamp Deer (Cervus duvauceli), Black Stork (Ciconia nigra), White Stork (Ciconia ciconia), Sarus Crane (Grus antigone), Bengal Florican (Houbaropsis bengalensis), Giant Hornbill (Buceros birocnis), Asiatic Rock Python (Python molurus), Gharial Crocodile (Gavialis gangetica) and Golden Monitor Lizard (Varanus flavescens).

64. Parsa National Park. It was categorized from wildlife reserve to national park after June 2, 2017 occupying 627.39 km2 with 285.3 km2 of area as buffer zone. It is spread over Chitwan, Makwanpur, Bara and Parsa Districts occupying Shiwalik Ranges and Bhabar Zone within 500 to 950 masl elevation. Except for Pinus roxburghii forest in the upper reaches of hills, Dalbergia sissoo and Acacia catechue forest along the banks of River Rapti the major vegetation here includes Shorea robusta forest. Protected Wildlife species found here includes pangolin (Manis crassicaudata), hyena (Hyaena hyaena), four horned antelope (Tetracerus quadricornis), asian elephant (Elephas maximus), royal bengal tiger (Panthera tigris tigris), Bison (Bos gaurus), one horned rhino (Rhinoceros unicornis), giant hornbill (Bucerus bicornis), asiatic rock python (Python molurus) and golden monitor lizard (Varanus flavescens). It also forms part of the Terai Arc Landscape that spread towards western Nepal and beyond to India. The 15th Plan of the government under its chapter for Economic Sector has categorized into (i) Agricultural and Natural Source and (ii) Industry, Commerce, Supply and Tourism subsectors. Within the Agricultural and Natural Sources first Strategy mentions Ecotourism and collaborative management in utilization of forest areas. Under this first strategy’s third work plan directs towards continuation of developing Parsa and Shuklaphanta National Parks’ as Natural Zoos29. Based on a survey carried out between 28 February 2008 to 24 March 2008 in transects along current Parsa National Park between Pathlaiya to Nijgad and the neighboring riparian zones (Sal dominated Forest) 58 bird species were recorded30. These include red junglefowl (Gallus Gallus), grey-capped pygmy woodpecker (Dendrocopos canicapillus), grey-headed woodpecker (Picus canus), himalayan flameback (Dinopium shorii), black-rumped flameback (Dinopium benghalense), lineated barbet (Megalaima lineata), blue-throated barbet (Megalaima asiatica), indian grey hornbill (Ocyceros birostris), indian roller (Coracias benghalensis), chestnut-headed bee-eater (Merops leschenaulti), asian koel (Eudynamys scolopacea), greater coucal (Centropus sinensis), rose- ringed parakeet (Psittacula eupatria), plum-headed parakeet (Psittacula cyanocephala), jungle owlet (Glaucidium cuculoides), spotted dove (Streptopelia decaocto), red collared dove (Streptopelia tranquebarica), eurasian collared dove (Streptopelia decaocto), crested serpent eagle (Spilornis cheela), Shikra (Accipiter badius), golden-fronted leafbird (Chloropsis aurifrons), brown shrike (Lanius cristatus), rufos treepie (Dendrocitta vagabunda), lare-billed crow (Corvus macrorhynchos), ashy woodswallow (Artamus fuscus), black-hooded oriole (Oriolus xanthornus), large cuckooshrike (Coracina macei), black-winged cuckooshrike (Coracina melaschistos), small minivet (Pericrocotus cinnamomeus), long-tailed minivet (Pericrocotus ethologus), scarlet minivet (Pericrocotus flammeus), bar-winged flycatcher-shrike (Hemipus picatus), black drongo (Dicrurus macrocercus), white-bellied drongo (Dicrurus caerulescens), crow-billed drongo (Dicrurus annectans), greater racket-tailed drongo (Dicrurus paradiseus), common lora (Aigithina tiphia), large woodshrike (Tephrodornis gularis), common woodshrike (Tephrodornis pondicerianus), Orange-headed Thrush (Zootherca citrina), oriental magpie robin (Copsychus saularis), white- rumped shama (Copsychus malabaricus), black redstart (Phoenicurus ochruros), hodgson’s redstart (Phoenicurus ochruros), chestnut-tailed starling (Sturnus malabaricus), common myna (Acridotheres tristis), jungle myna (Acridotheres fuscus), chestnut-bellied nuthatch (Sitta castanea), velvet-fronted nuthatch (Sitta frontalis), great tit (Parus major), red-whiskered bulbul

29 https://www.npc.gov.np/images/category/15th_Plan_Approach_Paper_Draft.pdf Page 160 30 Basnet, Y. R., & Thakuri, J. J. (2013). Ornothological survey of the Bagmati and Bakaiya river valleys, Nepal. Ibisbill: Journal of Himalayan Ornithology, 1(2), 155-169.

(Pycnonotus jocosus), red-vented bulbul (Pycnonotus cafer), grey-brested prinia (Prinia hodgsonii), common tailorbird (Orthotomus sutorius), striped tit babbler (Macronous gularis), jungle babbler (Turdoides striatus), chestnut-shouldered petronia (Petronia xanthocollis) and olive-backed pipit (Anthus hodgsoni). Of these species of birds only rose-ringed parakeet (Psittacula eupatria) is near threatened under IUCN Redlist Category rest are of Least Concerned category. The study transect includes from 27.177089 N and 85.132227 E to 27.1994 N and 85.154592 in Government Sal Dominated Forest. Common wild animals found in these forests include common leopard (Panthera pardus), yellow throated marten (Martes flavigula), hanuman langur (Semnopithecus entellus), rhesus macaque (Macaca mulata) etc. Prior to designating the area at the Substation site of Pathlaiya as a National Park these Sal forests and the ones south of the substation site at Piluwa village recorded Tiger (Panthera tigris) under the designation of Bara Forests. The study was done between 1999 and 2003 and this forest area was categorized as a breeding area for tiger. Furthermore, Terai and Siwalik region forest areas west of River Bagmati were observed as habitats for tiger. However, based on Tiger Conservation Action Plan for Nepal 2016 to 2020 by the government these areas do not fall under any corridor of tiger. An area 19 km North West of Pokhariya Substation Site in Thori Gaunpalika has been ecologically prioritized as Parsa Valmiki Tiger Corridor (Map 2). The current Pathlaiya substation was constructed in between 2009 and 2010 next to the east west highway when the surrounding forest area was not included into the national park boundary (which was done in 3 July 2017). In addition to the above ecological importance of the forest the conservation initiative that lead to the extension of 128.39km2 of the forest area (where in the southern border the Pathlaiya Substation is located)31 to be incorporated into the national park can be attributed to the Hariyo Ban Program Phase I (WWF Nepal in support of USAID and collaboration of the government). Based on their report, the areas east of the then Parsa Wildlife Reserve was designated as Parsa-Bagmati Corridor under Terai Arc Landscape to ensure linkage of biodiversity important areas to guarantee critical wildlife movement and survival of viable population32. The forest areas east of the park boundary up to Bagmati River in Rautahat District are also considered ecologically important.

65. Koshi Tappu Wildlife Reserve. This is an island and floodplains created by River Sapta Koshi and River Trijuga between Saptari and Sunsari Districts occupying 175 km2 in area and 173km2 of buffer zone. Towards south of the core area of the reserve till the Barrage (6.5 km distance) is known as the duban area. This has been leased to Government of India for 199 years. The Duban area of together with protected area of 49.6km2 serves as feeding, breeding and nesting sites for both resident and migratory birds. Major forest found here includes Dalbergia sissoo and Acacia catechu. Because of wetland of importance it has been designated as a Ramsar site. Protected species found here includes Pangolin (Manis crassicaudata), Hyaena (Hyaena hyaena), Wild Water Buffalo (Bubalus arnee), Asian Elephant (Elephus maximus), River Dolphin (Platanista gangetica), Black stork (Ciconia nigra), Bengal florican (Houbaropsis bengalensis), Asiatic rock python (Python molurus) and Golden monitor lizard (Varanus flavescens). The over ground distribution lines selected in areas close to these protected area and reserve needs to include bird markers to reduce bird collision.

66. Sagarnath Plantation Forest: This was a 4,150 ha plantation forest mostly Eucalyptus camaldulensis (60%), Dalbergia sissoo (30%) and Tectona grandis (10%) which was completed in 1986 with ADB funds in Mahottari and Sarlahi Districts (Map 9). The net plantation area happens to be 14% less than proposed because of plantation failures and fire. A major fire in

31 During site visits consultation at Pathlaiya SS was carried out where it was informed that no written permission from National Park authority is taken by NEA for their annaul undergrowth and shrub clearance along the RoW for the couple of towers situated within the boundary. 32 WWF Nepal. (2017). Biodiversity, People and Climate Change: Final Technical Report of the Hariyo Ban Program, First Phase. Haroyo Ban Program. Kathmandu, Nepal: WWF Nepal Page 12, Map 3 http://d2ouvy59p0dg6k.cloudfront.net/downloads/final_technical_report_of_the_hariyo_ban_program__first_phase.pdf.

1992 burned 600 ha of the forest. However, the project benefitted economically to the people living close to the project area and fulfilled its objectives of augmenting domestic fuel wood supply, providing additional employment, opportunities for landless and unskilled laborers, and training a large pool of forestry staff. Furthermore, fire line has been made to control fire in the forest. Therefore, selection of over ground lines in these areas need to take the fire factors into account.

Map 8: Location of Sagarnath Forest Region

67. Dhanusadham Protected Forest. This is a forest at Dhanusha district developed as park and close to Dhanusadham a religious site. The forest has presence rare species of fish, snakes, tortoise, turtles, blue bull, monitor lizards, civet-cats, pangolin and monkeys.

68. Forest Along the River Channels. The flat plains of Terai reduce the river’s vertical eroding power unlike in the mountains and the forces of erosion starts lateral erosion. The river here starts to braid and meander with active water in the channels dynamically changing course laterally from one side to another. This has resulted in formation of riverine forests along the banks in areas abandoned by river. This type of forests a mainly of short East West breadth but extend several kilometers in some areas in North-South Direction. They usually support Acacia catechue, Treiwa nudiflora and Dalbergia sissoo as trees with wetlands but not much of wildlife other than snakes and other small reptiles.

69. Elephant Movements outside Protected Areas. Asian Elephant (Elephas maximus) an IUCN Endangered, National Park and Wildlife Conservation Act 1972 protected as well as CITES appendix I species are known to move in several areas of Province 2 and have also caused

39 human elephant conflict (HEC). Some common areas of observation include Sarlahi District33, Mahottari, Siraha, Dhanusha and Saptari Districts mainly at the foothills forest and adjoining cultivated lands along the Shiwalik Ranges34. Movements (that are in historic corridors as well as in areas considered as nomadic movements) of elephants and crop depredation have been well known in these regions of Province 2. Other studies report (based on studies done between September to November 2015) that Forests of Rautahat and Sarlahi Districts are habitat of some wildlife of conservation importance which includes Striped Hyena (Hyaena hyaena), Asian Elephant (Elephas maximus), One horned Rhinoceros (Rhinoceros unicornis), Common leopard (Panthera pardus), Large Indian Civet (Viverra zibetha) and Terai Grey Langur (Semnopithecus hector)35. Based on consultation with local people during site visit (between June 3rd to 5th 2019) at Dokaila of Parsa District, Bardibas of Mahottari District and Nagrain of Dhanusa District of Province 2 it was confirmed that elephant caused destruction in some areas of Mahottari (till 2017) and Dhanusha Districts, During consultation it was noted that six areas of project sites outside protected areas in cultivated land are visited by Asian Wild Elephant (Map 16) that causes crop loss. Adequate training of local communities on insurance and preventive measures can help provide reduced crop loss.

J. Biodiversity and Cultural Heritage Areas Affected 70. The proposed project sites of substation components are not located in proximity to any environmentally sensitive areas; they are all located in modified habitat that has been altered and do not represent any category of pristine environment.

71. For Output 1 upgrading of the existing 132 kV transmission lines from the Pathlaiya substation to the Parwanipur substation by replacing the conductors partially falls within the boundaries of the Parsa National Park, but NEA have assured works will be confined to the existing right of way from Pathlaiya substation in respect of the couple of towers already located within it. Given the location in protected area site-specific requirements to be followed for this project component have been incorporated within the EMP.

72. In Gandaki Province, Pokhara Lekhnaath Metropolitan City is included under the Lake Cluster of the Pokhara Valley Ramsar Site comprising of nine lakes36. Undergrounding of existing feeders in the Kaski district of Gandaki Province falls within the Lake Cluster of the Pokhara Valley Ramsar site but works will be confined to the existing road. For the Distribution Lines of Pokhara two different feeders (Annex 2 Map 4) have been recommended by NEA (Sahid Chowk 3.604 km and Baidam feeder 8.604 km) of which Sahid Chowk Feeder comes within 50m of Phewa Lake for 300 m (length of line) near Ratna Mandir along the Lakeside Marg/Road while Baidam Feeder comes within 50 m of the Phewa Lake in six places for 95 m (along Baidam Road), 115 m (along Baidam Road), 107 m, 86 and 76 m at Khapaudi. The Baidam Feeder also runs for 92m along the forest followed by private land (agricultural land) for 2.43 km. Although the project proposed feeder is located inside the Ramsar site, they traverse along the road of major tourist hub and thus undergrounding will improve the safety and aesthetic value of the city. However, given the location in protected area site-specific requirements to be followed for this project component have been incorporated within the EMP.

33 Kathmandu Post, February 2019 https://www.msn.com/en-xl/news/other/wild-elephants-wreak-havoc-in-sarlahi- district/ar-BBU2ppA 34 Elephant Conservation Action Plan 35 Bhandari S., Rijal B., and Khanal S., 2015, Journal of Natual History Museum, Vol 29, Status of Striped Hyena (Hyaena hyaena Linnaeus, 1758) and their Conservation Approaches in Rautahat and Sarlahi Forests, Nepal. URL: https://www.nepjol.info/index.php/JNHM/article/view/19037 Accessed on June 17, 2019. 36 https://rsis.ramsar.org/RISapp/files/36682891/documents/NP2257_lit1602.pdf

73. One project component in Province 2 is located in the buffer zone of the Koshi Tappu Wildlife Reserve but does not encroach into the site. However, given the location in a buffer zone site-specific requirements to be followed for this project component have been incorporated within the EMP.

74. No other project components will fall within the boundaries or buffer zones of protected areas including World Heritage Sites, Ramsar sites, National Parks, Wildlife Reserves, or Conservation Areas.

75. The distribution centers of Kathmandu Valley and Bharatpur involved in Output 2 are mostly are in the urban environment or peri-urban environment. The biodiversity and cultural heritage protected areas crossed by distribution lines in the five distribution centers in Kathmandu Valley are elaborated in Table 4 (areas with the government protection highlighted as Green and Blue background). Among these, Pulchoki Conservation Area is not an IUCN Management Protected Area but rather a proposed one. At few locations lines in the distribution centers fall within the buffer zone of the SNNP as well as the national park area itself. The buffer zone areas mostly represent cultivated land which can be found outside as well as inside the protected core area (Table 4 cells in green) of the park. The distribution centers also cover the UNESCO core zones of Cultural World Heritage Sites of Pashupati Monument Zone and Swyambhu Monument Zone (Table 4 cells in blue) and close to the entrance of the Boudhanath Monument Zone. However, works within the protected areas listed in Table 4 will be avoided by the project components, such that no works in Kathmandu Valley will fall within the boundaries or buffer zones of any protected areas including the World Heritage Sites, Ramsar sites, National Parks, Wildlife Reserves, or Conservation Areas. That said, in Kathmandu Valley some works will take place within a few meters (about 7-10m) of these World Heritage Sites. The project activities will involve undergrounding or rehabilitation of existing lines whose maintenance work NEA does repeatedly, and the work undertaken will increase safety factors in the area concerned. However, given the higher risk of archaeological damage additional precautions as set out in the EMP will be taken in consultation with the Department of Archaeology for all proposed components within 250m, 100m and 10m of the proposed heritage core zones listed in Table 4 and buffer zone were it has been demarked. Clearance of forest will be required for the works for distribution centers in the Kathmandu Valley. If any works affect the forest area these will be subject to forest clearance requirements.

76. The project activities for Province 2 will be done all over the Province. However, World Heritage Sites, Ramsar sites, National Parks, Wildlife Reserves, or Conservation Areas will be avoided. If any works affect the forest area these will be subject to forest clearance requirements.

Photo 2: 0.4 kV Line Over the Core Zone of Swayambhu

Table 4: Environmentally Sensitive Sections Crossed by the Five Distribution Centers of Kathmandu Valley SN DC Sensitive Area Location Section Shankarapur 1 Forest Municipality Ward 3 and Salinadi to Jarsing pauwa 4 Buffer Zone of Shankarapur 2 Jarsingpauwa to Patap Gaun close to Chaukibhanjyang SNNP Municipality Ward 3 Melamchi Municipality Buffer Zone of 3 Ward 1 Sindupalchok After crossing metering unit Shi. Pa Jee Jaan Jhyas SNNP District Shakrapur Municipality 4 Forest Near Sushma Koirala Memorial Hospital Ward Number 1 Kageshwori Manahara Buffer Zone of 5 Jorpati Municipality Ward After Crossing Dovan to Gagalphedi SNNP number 1 Gokarneshwor Buffer Zone of Municipality Ward 1 and 6 Sundarijal to Dhakalgaun SNNP Kageshwori Manahara Municipality Ward 1 Kageshwori Manahara 7 SNNP Boundary Phuyalgaun to Bhimsentar Municipality Ward 1 Gokarneshwor 8 Forest Gokarna Resort west of Thali Chaur Municipality Ward 4 Gokarneshwor 9 2 wetland/ponds Opposite Norling Resort to Fohor Mallobato 50kVA Municipality Ward 4 Gokarneshwor 10 Forest South of Hanumanchowk from right bank of Bagmati River Municipality Ward 4 Gokarneshwor Buffer Zone of 11 Municipality Ward 2 and North of mills area till Sundarijal Power House SNNP 1 Gokarneshwor 12 SNNP North of Sundarijal Power House to Okhreni via Mulkharka and Chilaunegaun Baneshwor Municipality Ward 1 Shivapuri Gaupalika 13 SNNP Between Chilaunegaun and Okhreni Nuwakot District Baudhanath Monument Zone Kathmandu 14 WHS West from Jorpati Gokarna Bridge to Boudha Sanugate (Appendix 1 Photo 6) Metropolitan City Ward 1 (distribution line avoids the site)

SN DC Sensitive Area Location Section Core boundary of the Pashupati Kathmandu At Gaurighat into the core zone and from Umakunda goes south into core zone 15 Monument Zone Metropolitan City Ward 7 (Appendix 1 Photos 4 and 5) Cultural World Heritage Site Core boundary of the Pashupati From Jaybageshwori till Bhubaneshwari and enters East till it exits the core Kathmandu 16 Monument Zone area after crossing Bagmati River at Tilganga Hospital neighborhood. Metropolitan City Ward 8 Cultural World (Appendix 1 Photo 3 ) Heritage Site Core boundary of the Pashupati Kathmandu From Bhubaneshwari south follows the road east Soltee Crown towards 17 Monument Zone Metropolitan City Ward 8 Pashupati and Triyuga it again enters the core area Cultural World Heritage Site Core boundary of the Pashupati Opposite of Bhubaneshwori 100kVA across the road is Bhandarkhal Garden Kathmandu 18 Monument Zone the line South east to north west crosses through the proposed core (Appendix Metropolitan City Ward 7 Cultural World 1Photo1) Heritage Site Budhanilkantha 19 Forest Kapan Dada, Kapan Gumba and Dorje Gumba Municipality ward 11 Buffer Zone of Tarkeshwor Municipality 20 North to south runs from Allogeun towards Kabregaun SNNP Ward 2 Buffer Zone of Tokha Municipality 21 Chuigaun (north to south) SNNP Ward 1 Buffer Zone of Tarkeshwor Municipality 22 Durumpani from Dagaumepani runs north west SNNP Ward 4 Kuleshwar Nagarjun Mubiciality Crosses over the Pasang Lamu Highway into Nagarjun Forest (Appendix 1 23 SNNP and Balaju Ward 1 Photo 7 and 8) DC Buffer Zone of Tarkeshwor Municipality 24 North to west from Goldhunga, Bihanibasti till Mushkhu Dhoka SNNP Ward 5 Buffer Zone of Tarkeshwor Municipality South of Damaigaun it runs north to Aaathmile and further goes north to Jitpur 25 SNNP Ward 3 Dadagau Kakani Gaupalika Buffer Zone of 26 Ward 2 Nuwakot From Dadagau across the district border SNNP District

SN DC Sensitive Area Location Section

Buffer Zone of Tarkeshwor Municipality Line bifurcates north east and goes north from Dhitalthok then from Tinpiple to 27 SNNP Ward 3 Nanedadagaun and Jitpur Kathmandu Boundary of 28 Metropolitan City Ward Through Balaju Park SNNP 16 Swayambhu Kathmandu Between Dallu and Anandakutibihar Line is outside but 0.4kV Line is inside Monument Zone 29 Metropolitan City Ward another section at south part of the WHC runs north into the core zone area Cultural World 15 11kV seen in Appendix 1 Photo 10 and 9 respectively Heritage Site Nagarjun Municipality 30 Forest Dhandapawa for Lolang running north east Ward 6 Buffer Zone of Nagarjun Municipality 31 From Karkigaun to Bhirkot running north east SNNP Ward 8 Nagarjun Municipality 32 Forest Kalikasthan and Hasantar Godamthok Ward 7 Chandragiri Municipality 33 Forest Indrathana Area after crossing Basundol Ward 1 Chandragiri Municipality 34 Forest Chisapani along the highway to Thankot Ward 2 Forest of Phulchoki Kirtipur Municipality 35 Section at Mordern Indian School to Chobhar Hill Khatri Chhap Conservation Ward 6 Area Known for migratory birds Phulchoki Kirtipur Municipality 36 Conservation Taudaha area Ward 6 Kirtipur Area (line is 100 m away from wetland) Forest of Phulchoki Dakshinkali Municipality 37 Near Chalnakhel school Conservation Ward 1 Area Forest of Dakshinkali Municipality 38 Bansbari to Hattiban Resort Phulchoki Ward 4

SN DC Sensitive Area Location Section Conservation Area Forest of Phulchoki Dakshinkali Municipality 39 Dakshinkali Temple Area Conservation Ward 6 Area Forest of Phulchoki Dakshinkali Municipality 40 Chhaimale 8 Kajigaun Conservation Ward 8 Area Forest of Phulchoki Dakshinkali Municipality 41 Ramche Conservation Ward 8 Area

K. Socio-economic Conditions 77. The demographic status based on Central Bureau of Statistics for 2011 of project area is summarized in Table 5 where average household size is 4.4 with a sex ratio of 99.5. Kathmandu valley has an area of 72,181 and a population density of 34 persons per hectare of land. Ethnically the areas of Kathmandu Valley are different than that of other areas. In project sites in Kathmandu Valley 23.8% of the population is that of Hill Bhramin followed by 23.4% of Newar, 19.4% of Chettree and 10.7% of Tamang. There are several groups as minority here but who are dominant in Province 2 for instance Tharus total 1% and Yadavs are 0.3%. In addition, there are several other marginal groups like Muslims, Sarki, Damai, Kami and other Dalits. In Barhabise Substation site highest number of people constitutes Chettree with 35.5% of the population, followed by 23.3% of Tamang, 22.6% of Newar, 6.1% Hill Bhramin. Other groups include Muslims. At Khimti 1 majority of the population includes Chettree (43.4%) followed by Tamang (22.3%), Hill Bhramin (6.5%), Kami (5.3%), Newar as well as Hyolmo (4.4% each), Sarki (3.5%), Gharti/Bhujel (3.2%), Damai/Dholi (2.1%) and others (0.7%). At Bharatpur Metropolitan City the majority of the population includes Hill Bhramin (33.8%), Chettree (12.1%), Gurung (8.7%), Tamang (6.3%), Newar (6.1%), Tharu (6.1%), others include Kami, Magar, Kumal, Damai, Bote, Sarki, Musalman, Darai, Badi, Chepang, Teli, Kalwar, Kanu etc. At Pokhara Sub Metropolitan City the majority of the population comprises of Hill Bhramin (24%), Gurung (19.1%), Chettree (14.7%), Magar (10.2%), Newar (7.3%), Kami (4.7%), Tamang (3.1%), others include Damai/Dholi, Thakuri, Sarki, Musalman, Rai, Gharti/Bhujel, Sanyasi/Dashnami, Tharu, Thakali, Badi etc. Likewise, in Province 2 the major ethnic groups differ significantly than majority in Province 3 project areas. The CBS 2011 figures for Central Terai Region include Yadav (11.5%), followed by Muslims (11.2%), Hill Bhramin (5.9%), Tharu (5.3%) then Koiri/Kushwaha (4.3%)37. There are several other groups for instance Teli, Chamar/Harijan/Ram, Chhetree, Tamang, Kurmi, Dhanuk, Dusadh/Pasawan/Pasi, Kanu, Kalwar, Mallaha, Tarai Brahman etc. The

37 National Population and Housing Census 2011, CBS.

46 majority of population here are Maithili speaking (29.7%) followed by Bhojpuri (21.5%). Based on UNDP’s Human Development Report for Nepal the Human Development Index (HDI) values for 2011 data ethnically indicates 0.56 for Hill Bhramin, 0.51 for Hill Chettree, 0.45 for Hill Dalits, 0.4 for Madhesi Dalit, 0.57 for Newar, 0.42 for Muslims, 0.54 for Madhesi Bhramin/Chettree and 0.48 for all Janjati excluding Newar38.

Table 5: Demographic Status of Project Area Household Total Average Sex New Political Boundary Name Old Political Boundary Name Male Female (HH) Population HH Size Ratio Kageshwori Manahara Gothatar 6,749 26,169 13,184 12,985 3.88 101.5 Municipality Kageshwori Manahara Mulpani 2,647 11,742 5,889 5,853 4.44 100.6 Municipality Kageshwori Manahara Daanchhi 2,593 11,246 5,697 5,549 4.34 102.7 Municipality Kageshwori Manahara Bhadrabas 503 2,388 1,195 1,193 4.75 100.2 Municipality Kageshwori Manahara Aalapot 671 3,159 1,561 1,598 4.71 97.7 Municipality Kageshwori Manahara Gagalphedi 1,166 5,533 2,707 2,826 4.75 95.8 Municipality Kageshwori Manahara Lapsiphedi 1,209 5,629 2,751 2,878 4.7 95.6 Municipality Shankarapur Municipality Indrayani 717 3,361 1,658 1,703 4.69 97.4 Shankarapur Municipality Pukhulachhi 596 2,676 1,298 1,378 4.49 94.2 Shankarapur Municipality Suntol 1,021 4,819 2,351 2,468 4.72 95.3 Shankarapur Municipality Bajrayogini (Sankhu) 928 4,333 2,086 2,247 4.67 92.8 Shankarapur Municipality Naglebhare 935 4,520 2,202 2,318 4.83 95.0 Gokarneshwor Municipality Jorpati 21,862 84,567 42,445 42,122 3.87 100.8 Gokarneshwor Municipality Sundarijal 547 2,552 1,252 1,300 4.67 96.3 Gokarneshwor Municipality Baluwa 1,204 5,467 2,702 2,765 4.54 97.7 Gokarneshwor Municipality Nayapati 1,725 7,257 3,549 3,708 4.21 95.7 Gokarneshwor Municipality Gokarneswor 1,768 7,508 3,777 3,731 4.25 101.2 Budhanilkantha Municipality Kapan 12,324 48,463 24,671 23,792 3.93 103.7 Tarkeshwor Municipality Sangla 808 3,622 1,812 1,810 4.5 100.1 Tarkeshwor Municipality Kabhresthali 1,007 4,774 2,364 2,410 4.7 98.1 Tarkeshwor Municipality Jitpurphedi 1,103 5,135 2,499 2,636 4.66 94.8 Tarkeshwor Municipality Dharmasthali 1,421 6,530 3,250 3,280 4.6 99.1

38 Nepal Human Development Report, 2014, UNDP

Household Total Average Sex New Political Boundary Name Old Political Boundary Name Male Female (HH) Population HH Size Ratio Tarkeshwor Municipality Phutung 1,064 4,792 2,365 2,427 4.5 97.5 Tarkeshwor Municipality Goldhunga 3,806 16,174 8,325 7,849 4.25 106.1 Tarkeshwor Municipality Manmaiju 10,949 40,416 20,761 19,655 3.69 105.6 Nagarjun Municipality Ichangu Narayan 6,288 24,425 12,152 12,273 3.88 99.0 Nagarjun Municipality Sitapaila 4,524 17,909 9,174 8,735 3.96 105.0 Nagarjun Municipality Bhimdhunga 619 2,915 1,484 1,431 4.71 103.7 Nagarjun Municipality Ramkot 1,937 8,759 4,399 4,360 4.52 100.9 Nagarjun Municipality Seuchatar 3,378 13,412 6,855 6,557 3.97 104.5 Chandragiri Municipality Baad Bhanjyang 817 3,779 1,873 1,906 4.63 98.3 Chandragiri Municipality Dahachok 878 4,036 1,991 2,045 4.6 97.4 Chandragiri Municipality Naikap Purano Bhanjyang 1,054 4,546 2,251 2,295 4.31 98.1 Chandragiri Municipality Naikap Naya Bhanjyang 1,980 7,944 4,025 3,919 4.01 102.7 Chandragiri Municipality Tinthana 2,507 9,726 4,966 4,760 3.88 104.3 Chandragiri Municipality Satungal 2,726 10,452 5,425 5,027 3.83 107.9 Chandragiri Municipality Mahadevathan 3,731 15,514 7,731 7,783 4.16 99.3 Chandragiri Municipality Matatirtha 1,413 5,982 3,004 2,978 4.23 100.9 Chandragiri Municipality Machhegaun 872 3,849 1,884 1,965 4.41 95.9 Kirtipur Municipality Kirtipur Municipality 19,441 65,602 36,476 29,126 3.37 125.2 Dakshinkali Municipality Chalnakhel 1,005 4,365 2,093 2,272 4.34 92.1 Dakshinkali Municipality Sheshnarayan 844 3,855 1,953 1,902 4.57 102.7 Dakshinkali Municipality Talkududechour 648 2,858 1,389 1,469 4.41 94.6 Dakshinkali Municipality Daxinkali 984 4,755 2,344 2,411 4.83 97.2 Dakshinkali Municipality Chhaimale 968 4,216 1,977 2,239 4.36 88.3 Barhabise Municipality Barhabise 1,683 7,117 3,519 3,598 4.2 97.8 Manthali Municipality Khimti 1,284 5,733 2,594 3,139 4.5 82.6 Kathmandu MC Kathmandu MC 254,292 975,453 511,841 463,612 3.8 110.4 MadhyapurThimi Municipality MadhyapurThimi Municipality 20,302 83,036 42,723 40,313 4.1 106 Province 2 Province 2 932,308 5,404,145 2,717,938 2,686,207 5.8 101.2 Bharatpur Municipality, Bharatpur Metropolitan City Chitraban, Narayani and 67,694 280,502 134,001 146,501 4.1 91 Kabilas VDCs Pokhara Sub Metropolitan Pokhara Metropolitan City 68,236 255,465 126,238 129,227 3.7 97.7 City Total or Average 1,481,736 7,553,182 3,814,651 3,738,531 4.4 99.6

L. Proposed Substation Sites 78. All substation sites except Koteshwor, Khimti 1 and those in Province 2 have been visited more than once. However, these sites are all within existing NEA’s territory or in government owned land except for those in Province 2. For Province 2, observations were undertaken at substations in Birendrabazaar, Pokhariya, Parsa, Bardibas, Nagrain, Lohana, Siraha (Laxmaniya), Saptari (Khadak Municipality), Mahendranagarbazaar (Dhanusha) while Manpur (Rautahat) and Mandra (Mahottari) sites were assessed based on desktop study and in consultation with NEA field officers.

79. In earlier PTDEEP work in 2017, distribution centers transect walks were carried out in Central as well as Northern Kathmandu Valley areas with the involvement of national as well as international experts. From site observations (which also included consultation at Rupshetar, Dharmasthali and Jorpati that are within Baneshwor, Jorpati and Balaju Distribution Centers) it was concluded that the area of Kathmandu Valley was congested, noisy and thus in need of immediate upgradation of the power distribution system for public safety as well as operational security.

V. ANTICIPATED ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES

A. Potential Impacts 80. Major permanent physical impacts of the project will take place by a new 132/11 kV substation at Koteshwor, new 132/33 kV substation in Pokhariya, 10 new 33/11 kV substations in Province 2, 12 km of underground 132 kV line, 2km of underground 66 kV line, and distribution line expansion in Province 2.

A.1. Topography, Land use, Land Acquisition, and Construction Spoil

Construction Phase 81. Earthworks of varying extent will be required at each substation site to provide a level platform for construction. Slope stability and drainage and minimization of soil erosion and surface water runoff during construction works will need to be adequately considered in the detailed design.

82. Undergrounding of transmission and distribution lines will be done by drilling and a radar system will be used to check the route alignment and help avoid damage to other underground utilities/structures. Damage to utilities/structures that does result will be repaired by the contractor. In addition, the contractor will need to ensure that existing electricity supply connections and other utilities are maintained during works. There will be temporary disturbance to cultivated land and roads along which the lines run during these works which will be compensated for in accordance with the Resettlement Plan. For example, the undergrounding in Kathmandu Valley will require earthworks on 817.5 ha of land.

83. Mitigation measures are included in the EMP to minimize pollution as well as health and safety risks. Earthworks cut and fill from substations and from boring/drilling activities for line undergrounding works will generate construction spoil for disposal. Construction wastes will be managed as per international good practice set out in the EHS General Guidelines covering Construction and Demolition.

Operation Phase 84. Changes in land use following construction will be a permanent feature in all the existing and new substations. However, only the 132/11 kV substation at Koteshwor which will require 0.203 ha of government land, the 132/33 kV substation at Pokhariya which will permanently acquire 1.014 ha of agricultural land, as well as the 33/11 kV substations of Province 2 which will require 5.07 ha in total, mostly agricultural land to be acquired, are new while others are upgradation of existing substations where topography and land use in the area has already been altered to accommodate the substations. Except for those in Pokhariya and Province 2 substation sites are NEA property or government owned land with need no land acquisition. There will be permanent change in land use where there is placement of above ground transformers for undergrounding and several km of network extensions in Province 2, but the remainder of works will cause land use to be unaltered.

A2. Watershed Drainage, Soil Erosion and Waterlogging

Construction Phase

85. For the substation sites, construction works involving cutting and filling in the hilly areas may lead to drainage, soil erosion, instability of slope, and localized waterlogging issues as well

50 as pollution risk due to leaching to soil, groundwater or surface water if any fuel, oil or chemical spill occurs. This may affect neighboring land as well. The project footprint is small hence alterations of drainage and runoff will be minor but still need to be managed. The waterlogging issues especially in flat land of Province 2 can lead to breeding ground for vectors of vector borne diseases such as dengue, malaria etc.

86. Currently the substation at Bardibas located 3 km from main town along the Bardibas Jaleshwor Highway has a flood way which a few 100 m north of the site has caused destruction of a building. Adequate measures will be necessary to prevent the land from being eroded in future. Likewise, flat terrain of Province 2 temporally gets flooded during monsoonal rains therefore measures to avoid flooding during the construction and operation phase of the project need to be incorporated into the detailed design.

87. The underground work for distribution in Kathmandu Valley will result in minimal soil erosion, yet waterlogging issues can arise in urban areas which can be addressed through good housekeeping and site management. Particularly areas close to river corridors of Bagmati and its tributaries urban areas may get flooded with chocking of sewer lines having an adverse impact during construction work. For Province 2 extension works will have no major impact on soil erosion over the flat terrain.

88. To minimize impacts, construction is to be managed in accordance with the managed as per international good practice as set out in the EHS General Guidelines on Construction and Demolition and Waste Management as well as the EHS Guidelines on Transmission and Distribution. Additional mitigation measures are included in the EMP to manage drainage from the project sites.

Operation Phase

89. In Kathmandu valley areas of chocked drainage and sewer lines in urban areas can cause localized flooding during monsoonal rainfall which may adversely affect power supplies and maintenance work. Close coordination with municipal bodies will aid in solving such problems and can reduce severity of such impacts. Moreover, ADB is helping towards solving such potential problems with its Nepal: Kathmandu Valley Wastewater Management Project, Bagmati River Basin Improvement Project and Kathmandu Valley Urban Environment Improvement Project. For other components, no major impact is anticipated during the operation phase provided sensitive areas such as riverbanks and wetlands are avoided by the extension work in Province 2.

A3. Air Quality

Construction Phase

90. At all the substation sites digging, excavation and, on the access road, transportation will lead to dust and emissions. This will cause temporary, localized air quality deterioration in the area. Spraying of water at the access road will reduce dust related impact in major settlement areas.

91. For the distribution modernization and reinforcement works in Kathmandu Valley the undergrounding works will not have a major air pollution impact except for the exhaust emissions from vehicles carrying crew and heavy equipment to and from the site. The baseline air quality standards in Kathmandu are already poor but these are localized impacts and temporary in nature and can be checked with inspection of vehicles emission levels in accordance to the government

51 tail pipe emissions caps, communication to local communities of construction works, and spraying of water along the approach road. Similar issues will arise at Province 2 sites distribution network extension and reinforcement works.

92. To minimize impacts, construction is to be managed in accordance with the managed as per international good practice as set out in the EHS General Guidelines on Construction and Demolition.

Operation Phase

93. No major adverse air quality impact is expected during the operation phase except for movement of maintenance team vehicles in all the project component sites. Release of SF6 from leakage at GIS substation can be mitigated through inspection and regular maintenance of equipment including monitoring of any leakages.

A4. Noise

Construction Phase

94. Noise will be common during the construction stages at the substation sites. The impact will be temporarily felt in proximity to the project activities. This can cause nuisance to neighboring houses mainly in urban areas. However, for sites in rural settings such as Khimti, Lapsiphedi and Barhabise it will not have a significant impact. Noise impacts can to a certain level be reduced by compound walls of the substations and the houses concerned through a barrier effect. Moreover, the issue will be temporary in nature and taking into consideration the sensitivities of local lifestyle, managing the higher noise of the construction work accordingly can reduce the potential conflict.

95. The construction for distribution modernization and reinforcement works in Kathmandu Valley, mainly the undergrounding works, will create noise from the heavy machinery involved in boring or drilling activities as well as from cutting of existing roads. Heavy settlement in urban areas will be troubled by resulting noise. The adverse effects of such temporary and short duration works can be minimized with effective communication materials and warning board display in the construction area providing positive message of the benefits of the works being carried out. Thus, this will reduce the potential psychological stress among local communities that will be created. The over ground works in Kathmandu Valley as well as Province 2 will not have a major noise impact in urban or rural areas alike.

96. To minimize impacts, construction is to be managed in accordance with the managed as per international good practice as set out in the EHS General Guidelines on Construction and Demolition, noise levels will be in accordance with WHO guidelines or where they are already exceeded not result in more than 3dBA increase as 1 hour LAeq which may mean limiting the duration of noisy works in a given period.

Operation Phase

97. No major impact is associated with noise during the operation and maintenance phase of the substations as well as transmission and distribution lines except some movement of the crew and maintenance vehicles. For the 132 kV and 33 kV lines there can be noise generated by the transmission and distribution lines in certain conditions through corona discharge, but the noise levels will not be significant in nature.

A5. Water Quality

Construction Phase

98. The construction activities of substations such as digging, and concrete casting of foundations will be within the boundary wall of the substation sites and hence water required for concrete mixing and any type of vehicle oil or transformer oil leakage, waste water can be managed within the site with proper drainage if constructed prior to beginning the work. This will prevent runoff and contamination reaching the external aquatic environment in vicinity of the construction site.

99. The digging or boring activities for distribution centers in Kathmandu Valley will involve certain amount of spoil generation which if not well managed may lead to sediment laden runoff and deterioration of surface water. This can be minimized with proper side casting and offsite disposal. Also, the transformer oil leakage can pollute nearby surface and ground water through runoff and leaching. This can be minimized with avoiding areas close to surface water sources and timely inspection and maintenance during preconstruction and post construction period. Similar problems will arise in Province 2 distribution works while digging pits for extensions and transformer oils runoff and leakage to surface or ground water environment and soil of farmland.

100. To minimize impacts, construction is to be managed in accordance with the managed as per international good practice as set out in the EHS General Guidelines on Construction and Demolition.

Operation Phase

101. During the operation and maintenance phase transformer oil may leak, polluting surface water as well as ground water at all the project component sites. This can be mitigated with adequate inspection and maintenance activities.

A6. Biodiversity

Construction Phase

102. For Output 1 upgrading of the existing 132 kV transmission lines from the Pathlaiya substation to the Parwanipur substation by replacing the conductors partially falls within the boundaries of the Parsa National Park, but NEA have assured works will be confined to the existing right of way from Pathlaiya substation in respect of the couple of towers already located within it. Undergrounding of existing feeders in the Kaski district of Gandaki Province falls within the Lake Cluster of the Pokhara Valley Ramsar site but works will be confined to the existing road.

103. All project components in Kathmandu Valley and other areas in Bagmati Province will avoid internationally and nationally important biodiversity protected areas. However, given sites of ecological importance as indicated in Table 4 a precautionary approach will be taken. All construction work will need to ensure poaching, hunting, fishing and burning of firewood is prohibited, including that worker camps do not use firewood for cooking and heating. Likewise, for works in forest land, forest clearance will be required and works will only be undertaken only from one hour after sunrise to one hour before sunset with all construction camps and storage areas located outside the forest area. One important site is near Taudaha, a wetland well known among bird watchers of Kathmandu where migratory birds visit during winter months. Although the line traverses almost 100m away from the wetland, undergrounding here will be beneficial environmentally as well as aesthetically to this site. Another wetland observed is two water

53 stagnant bodies near Gokarna Resort opposite of the Norling Resort Jorpati Distribution Center which will be avoided.

104. Province 2 is an area where locations in Mahottari, Sarlahi, Dhanusha and Saptari Districts close to Chure Hill Forest (Chure Conservation Area) but outside of the protected area have recorded history of elephant migration and human conflict. Construction in these areas will be avoided during the elephant movement seasons which mainly take place during paddy ripening season (Map 16). Areas close to Koshi Tappu Wildlife Reserve are wetlands that are breeding grounds for several migratory as well as resident species of birds. No works will be undertaken within the protected area, but lines close to it require bird markers to be installed to reduce collision related bird mortality. During consultations it was informed that six sites were visited by Asian Elephant and one site in Saptari close to Koshi Tappu Wildlife Reserve is also seasonally visited by wetland migratory as well as resident birds. Although no casualties by electric lines to elephant was informed, mitigation measures with use of bird markers in sensitive areas will reduce electrocution of birds (Map 13).

105. Other biodiversity issues are that Terai regions of Nepal are known for several poisonous snakes such as Biocellate Cobra (Naja kaouthia), King Cobra (Ophiophagus hannah) and Kraite (Bungarus caeruleus) which cause morbidity and mortality by snake bites. Every year more than 20 thousand cases of snake bites with thousand deaths are reported in Nepal39. Therefore, construction work needs to avoid work after rain, flood, and in the crop ripening seasons, cautiousness while putting hands in holes (particularly in areas with high density of rodents) and avoiding works during night.

Operation Phase

106. During the operation phase ROW clearing will cause disturbances which will be of short term and temporary in nature.

107. Other potential impacts include collision of birds with power lines in major breeding as well as flocking areas of birds, therefore works in such sensitive areas will be avoided by the project. Any distribution components in Gobargadha Gaunpalika Ward-13 (Barah, Naraha, Lilaja, Sarbaha, Gobargadha, Mushahari, Laksmipur), Sunkoshi Municipality Ward-7 (Bangama, Odraha), Sunkoshi Municipality Ward-6 (Bochani, Pokhariya), Sunkoshi Municipality Ward-9 (Patantol, Kamalpur), Sunkoshi Municipality Ward-10 (Bhagani, Santapur), Sunkoshi Municipality Ward-10 (Maleth), Kanchanrup Municipality Ward-6 (Jamuwa, Ghoghanpur, Kwatar Maleth), Kanchanrup Municipality Ward-5 (Paraimara, Pipra, Pathari, Khikharipatti, Rampur), Kanchanrup Municipality Ward-7 (Baluwa, Adarshatol) and Kanchanrup Municipality Ward-4 (Kanchanpur, Bakal, Kabilasa, Jagatpur, Labatoliya, Jhankatta) of Saptari District lie very close to River Koshi (site for Koshi Tapu Wildlife Reserve and also a Ramsar Site) a wetland habitat of high avian use for nesting, foraging, roosting and resting site for several resident as well as migratory birds (most visitor birds are witnessed during the months of January to March) and hence during this period there is an increased collision risk. Use of bird markers and location where it will be needed has been included (Map 13) as mitigation.

108. The settlement areas of Baraha, Naraha, Lilaja, Sarbaha, Gobargadha, Mushahari and Lakshmipur of Gobargadha Gaunpalika Ward-13 (it should be noted several of these areas are not included in the project) are close to habitats of White-rumped Vultures (Gyps bengalensis) IUCN Redlist Category of Critically Endangered based on transect survey conducted between

39 Chaudary S. Reffered from Devkota UN, Steinmann JP, Shah LN. Snakebite in Nepal; A study from Siraha District, Nepal. Journal of Nepal Medical Association 2000; 39(134)

2008 and 201840. Therefore, as a precautionary measure all above ground distribution components included in the project need to be constructed in accordance with the EHS Guidelines on Transmission and Distribution and international good practice in IFA’s “Preventing the Electrocution of Birds on Power Infrastructure” and APIC’s “Reducing Avian Collisions with Power Lines: State of the Art in 2012” e.g. by using avian-safe framing such as conductor separation of 60 inches between energized conductors and grounded hardwire or covering energized parts and hardware if such spacing is not possible (use of ABC will be beneficial in this regard for the 0.4kV lines while for the other higher voltage lines avian safe framing technique will reduce bird mortality). Without such intervention line tripping due to bird electrocution can also be of nuisance to NEA in future.

A7. Public Health

Construction Phase

109. Project area residents will experience some regular contact with the temporary labor force including outsiders during cosntruction. This can be more noticeable at the substation sites as works will be of longer duration in one place. Typically, 15 to 20 crew members will be there for the construction period.

110. Contractors will need to undertake health and safety risk assessments, implement health and safety plans in accordance with the EHS General EHS Guidelines on Occupational and Community Health and Safety as well as the EHS Guidelines on Transmission and Distribution Lines, awareness raising on HIV/AIDS, as well as providing sanitation and welfare facilities including and waste management control. Labor camps will need to be provided with adequate sanitation and welfare facilities including adequate number of toilets with water supply and provision of drinking water to drinking water standards and waste management. Pit latrines should not be used due to pollution risk.

Operation Phase

111. Usually only 8 to 10 staff are present in the substation site during operation phase. The local people are also sourced for the project where possible. Awareness raising on electromagnetic field effects, safety and hazard from the substation and lines need to be disseminated to locals. Safety signs need to be installed. Safety measures also need to be regularly inspected and maintained. Undergrounding of lines will be beneficial it that it will remove safety risks associated with overhead lines.

A8. Construction Camps and Storage

Construction Phase

112. Areas used temporarily for construction camps and storage of materials will lead to changes in land, fuel wood demand, and waste related issues. Adequate storage facility need to be provided (110% bunded storage capacity of spare fuel, oil and chemicals stored over impermeable concrete pads at least 50-100m away from workers accommodation, wells and other groundwater sources, and surface water) and measures for spill mitigation need to be put in place. For transformers, Spill Prevention Control and Countermeasures (SPCC) plan recommended by the United States Institute of Electrical and Electronics Engineer Inc. (IEEE) standard 908 needs

40 Galligan, T. H., Bhusal, K. P., Paudel, K., Chapagain, D., Joshi, A. B., Chaudhari, I. P., et al. (2019, May 24). Partial recovery of Critically Endangered Gyps vulture populations in Nepal. (P. Atkinson, Ed.) Bird Conservation International, 1-16.

55 to be followed (examples of measures included in Table 9). Restoration of land, provision of workers with alternative energy sources to fuel wood such as LPG, and adequate waste collection and disposal system will reduce adverse impacts from the substation as well as transmission and distribution components.

Operation Phase

113. The temporarily used sites will be restored following works and hence no major impact will occur during operation.

A9. Occupational Hazard and Safety

Construction Phase

114. Construction related hazard, possibly resulting in injuries and death, will be present. Therefore, adequate implementation of Health and Safety measures by contractors through health and safety risk assessment and plans in accordance with the EHS General Guidelines on Occupational Health and Safety will need to be implemented. Likewise, adequate traffic management will be required to reduce disruption of local movement of local commuter that may lead to conflicts or accidents.

Operation Phase

115. Access to substation will be for authorized personnel only and should be fenced, locked and signed. The use of Aerial Bundle Cable will lead to a reduction in hooking practices and reduce the chances of electrocution. The burial of distribution lines will also lead to improved public safety.

A10. Electric and Magnetic Field Effects

Construction Phase

116. These effects occur during the operation and maintenance phase of the project

Operation Phase

117. Electric power transmission as well as distribution lines create electric and magnetic field together, referred to as electromagnetic fields (EMF). Electrical flux density declines in inverse proportion to the square of the distance and magnetic fields decline in inverse proportion to the cube of the distance. Research on the long-term effects of EMF associated with transmission and distribution lines is inconclusive with respect to health risks. As noted in the World Bank EHS guidelines for transmission and distribution systems, there is no empirical data demonstrating adverse health effects from exposure to typical EMF levels from power transmissions lines and equipment (see footnote 37).

118. NEA complies with international norms for field strength limits. NEA is following the approved international standards and design; this will ensure EMF levels will be within international good practice International Commission on Non-Ionizing Radiation Protection (ICNIRP) reference levels. Detailed discussion on health impacts associated with EMF is presented in Annex 7.

A11. Poly Chlorinated Biphenyls (PCBs) and SF6

Construction Phase

119. PCBs during construction phase are not anticipated as substations are being newly constructed or upgraded, and NEA has not purchased PCB containing transformers since 1990. However, unless NEA has records of transformers being PCB (which should be the case for all transformers manufactured after 1990) as a precautionary measure any existing transformers affected by the works will be tested to confirm if PCB free.

Operation Phase

120. Due to its high heat capacity, low flammability and low electrical conductivity, PCBs were extensively used as insulating material in capacitors and transformers. But after the finding that these PCBs are non-biodegradable and have carcinogenic tendencies, their use in electrical equipment as an insulating medium has been banned internationally.

121. In compliance with the above, NEA has also banned purchase of equipment (transformers and capacitors as per international standards) using PCBs. NEA also obtains confirmation from the supplier at the time of bid offer that the offered transformers are free from PCBs.

122. Emission of greenhouse gases from insulators, which use SF6 in high voltage equipment, is a major concern. SF6 has a global warming potential 23,900 times greater than CO2, which needs to be controlled. Emission of SF6 will be controlled by adopting good practices such as leak detection and repair to ensure less than 1% leakage, and orientation and training of employees.

A12. Religious, Historical and Archeological Sites

Construction Phase

123. All the substation sites are located away from and transmission lines are routed to avoid cultural heritage protected areas. However, the distribution line works in Kathmandu Valley whilst not being undertaken within World Heritage Sites run very close to such sites (Table 4). Kathmandu is a very ancient city with numerous temples, stupas and other historical monuments for instance waterspouts. Several of these are already under protection and come under the jurisdiction of Department of Archeology that is managed in collaboration with local communities. As elaborated in Table 4 there are several places where under Baneshwor and Balaju Distribution Centers existing lines cross into the proposed core zones of the UNESCO Cultural World Heritage Sites. Although undergrounding of the lines will improve the environmental aesthetics and safety of the areas, because of the potential adverse impacts to the archeological treasures underneath the land to be damaged during construction (and regulatory requirements) World Heritage Sites will be avoided by the project. However, works will still place around them and so in proximity to historical sites permission and presence of experts from Department of Archeology (DOA) has been recommended during consultation with DOA experts).

124. Janaki Temple of Janakpurdham in Province 2 is recognized as historical monument by DOA and is currently applied to UNESCO to be included in the Heritage List (currently under process). 24 km (approximately) distribution line in the temple’s periphery along the road and Parikrama (procession) route (photo below) where annually 1 to 1.5 million pilgrims move.

Operation Phase

125. No impacts will occur on cultural heritage during operation phase. Burying of lines will improve the aesthetics of the areas as well as safety.

A13. Beneficial Impacts

Local Employment

126. One benefit of this project will be to cause minor employment opportunities locally through use of local labor force of semiskilled manpower.

Local Economy

127. Leasing of land and renting of houses for accommodation by workers during construction will contribute to the economy of the project area. During PTDEEP survey and monitoring has shown that local have invested land acquisition funds in business, property or education which will improve the local economy (village level) of the area. One adverse effect observed was that after getting hold of the negotiated deal of the land acquisition funds from NEA some locals emigrated to capital city (which is justified in their terms of the deal) looking for better life which would not contribute to local economy.

Improved Environmental Safety and Financial Gains

128. The upgradation and modernization of the National Power Grid in terms of meeting increasing demands for energy from the Grid and supplying potential markets outside

International Border will also lead to reduced electricity related hazard such as fire and electrocution as well as reduced power cuts and an increase in financial gains for NEA with sale of electricity beyond national consumers.

129. Also a reliable supply of electricity with standard voltage will result in reduced use of diesel generators, better irrigation of agricultural land and improved yield of crops (based on consultation in Siraha District the current voltage supply can only support pumps that can power motors at shallow depths of ground water approximately 60 feet in depth). This water is contaminated with Arsenic and Iron resulting is reduced productivity of land. With more reliable and sufficient voltage deep boring will be possible and irrigation with cleaner water will result in increased agricultural productivity of land.

130. Also reliable supply of power will result in reduced incidence of snake bites related deaths at night, help with supply of pumped clean drinking water by Municipal Water Supply Departments, reduce losses from malfunctioning of electronic machines because of voltage fluctuation for local businesses, reduced air pollution by business running diesel generators, better health facilities by continuous operation of electronic health related machines such as freezers for preserving ant venoms, vaccines, medicines, incubators etc.

131. Potential impacts and mitigation measures for the overall project are summarized in Table 9 below.

Figure 2: Environmental, Health and Safety Gains of PTDSSP

Table 6: Potential Impacts and Mitigation Measures of Overall Project Components

Potential Institutional Project Activity Magnitude Extent Duration Mitigation Measures Adverse Impact Responsibility Pre-Construction Stage Reconnaissance Avoidance of Survey and Potential Impact Biodiversity Rich Area, Alternate on Topography, Water Bodies and NEA to conduct Analysis for New Biodiversity, Air, Culturally Rich Areas. and/or Substations, Low Local Permanent Water, Soil and Avoid transmission and commission Transmission Cultural distribution lines route surveys to Line and Resources directly over houses or minimize Distribution Line structure construction Extension footprint and to Sensitive sites as obtain Protected Area, Selection of construction Permanent land Wetlands and World Substations and license. use changes and Heritage Sites are to be Distributions disturbances Low Local Permanent avoided. Areas Systems to be NEA to develop during adjacent to Historical modernized and appropriate construction Sites works needs to be reinforced contract done with permission specifications. from DOA. ADB to Review Pollution of Water and give no Development of Sources while Wetlands, Low lying objection Environmental collecting soil Low Local Temporary areas to be avoided Baselines samples for substations Construction Stage NEA to include Restore loose soil from appropriate tower foundation, contract clauses Permanent prevent oil leakages. for installation of 20 Avoid/Compensate implementation km of new 132kV Temporary forest areas in of Design and TL and for accordance to legal Environmental routing of transmission rehabilitati requirements. Management transmission, towers. on while Boring mechanism will Plan (EMP). distribution Rehabilitation and permanent Moderate Local have minimal impacts system burial of lines will for over ground and avoid Implementation modernization disrupt normal transmissi environmental losses consultants to and extension activities. The on and such as that of March assist in EMP (ROW) extension works extensions 31st, 2019 implementation will cause works Storm/Tornado in two including permanent western districts of regular changes to land province 2 (Parsa and reporting to Bara) details in Chapter NEA and ADB. 3 Section C. Boundary walls to be Contractors to constructed prior to develop and other activities so as to implement act as a barrier. This environmental, short duration noise health and Noise pollution Noise from impact can be safety causing nuisance construction Low Local Temporary minimized through measures in and conflict with activities effective accordance with local communities communication of best nature and duration of management such impacts and the practices and benefits of the project consistent with to come. Use of ADB’s

Potential Institutional Project Activity Magnitude Extent Duration Mitigation Measures Adverse Impact Responsibility communication Safeguards material and boards Policy along the construction Statement site. Moreover, (2009) and undergrounding work World Bank using modern Group EHS machinery complete guidelines work much quickly compared to traditional manual trench work and hence construction project sites move out relatively quickly from the neighbourhood. Adequate planning and Permanent land placement of use changes at Permanent equipment can reduce Parwanipur for the problems of slope Pokhariya TL, substation, stability, soil erosion Khimti1, tower and leaching of oil to Barhabise, footings ground water. Lapsiphedi, and Earthworks and Koteshwor, 12 extension Immediate Restoration underground substations and Moderate Local distribution of disturbed areas. works Extension of lines but Disposal of outcast to distribution in temporary an offsite area and Province 2. for Coordination with

distribution Department of Temporary land undergrou Archaeology for works use changes nding to be done in the during for burial of immediate vicinity of distribution lines ancient monuments. Compensation payments as per Resettlement Plan. Distribution lines reinforcement as well as extension works in Kanchanrup Municipality. Ward 4, 5, 6 and 7 close to Koshi Tappu Wildlife Reserve Clearing of away from settlements vegetation at crossing cultivated land substation sites, needs to include bird Permanent of loss distribution diverters or markers. of cultivated land Moderate Local Permanent extension sites Also an Avian Safe and Forest Land and existing minimum design ROW of standard of three phase distribution lines structure minimum 60” clearance between conductors if they are 45 or less, a vertical clearance of at least 43” between uninsulated conductors. Ground wires and grounded hard wires with lowered 8-foot cross arms is

Potential Institutional Project Activity Magnitude Extent Duration Mitigation Measures Adverse Impact Responsibility recommended by US Avian Protection Plan 2005.

Run on/runoff control mechanism such as bunding, combined with silt traps, soak pits and Suspended solids, adequate drainage Soil erosion and BOD, and fecal network to be wastewater from coliform developed. Avoiding work sites and Low Local Temporary contamination to ecologically sensitive construction nearby aquatic areas with proper camps environment sanitation, waste collection and disposal facilities to be provided. The area will need to be restored after its use. Dust control with water Temporary sprays and increase in contractor’s equipment to meet Construction Suspended national standards with Dust and Particulate Low Local Temporary timely inspection and Exhaust gases Matters, and other maintenance. Spraying air pollutants at of water and approach construction sites road To be disposed in Overground and offsite low-lying areas Spoil, Muck and Underground Low Local Temporary with restoration. Slurry production Earth Works Damaged property to be compensated Coordinate with local traffic police, installation of traffic posts, clearly visible Accidents and Traffic traffic signage. conflicts with local Moderate Local Temporary Disturbance Avoid peak traffic hours communities if possible and of days coinciding with local cultural or religious processions Stockpiling of Placement in construction Traffic disruptions, contractor’s stockyard materials and air, water, soil that needs to be Moderate Local Temporary staging pollution and cleared and restored construction accident risk when construction is equipment over. Traffic disruptions, Ensure lines do not air pollution, loss cross agricultural fields of crops, in manner that disturbance to adversely affects wildlife, felling of farmers, activities along Transportation trees, hunting, ROW at forest should to Construction poaching of Moderate Local Temporary not be done during the Site wildlife, bush meat period of movements of trade (in ROW of wildlife, in areas of forest land) and forest removal of poles attack by should not cause loss carnivorous of trees outside of the animals like ROW, prohibit sling

Potential Institutional Project Activity Magnitude Extent Duration Mitigation Measures Adverse Impact Responsibility leopard (Panthera shot, traps, whistle into pardus). forest area. Activities in forest area need to be monitored under observations of forest guards. Avoid any child workers even as assistants into the forest area. Ensuring adequate Personal Protective Equipment is used. Contractors to implement environmental health and safety plan consistent with best Occupational Potential injuries practices. Gender Health and to workers and Moderate Local Temporary sensitivities to be Safety residents maintained at work site. Child labor to be prohibited. In Province 2 awareness on snakebites from poisonous snakes to be provided particularly during monsoon season Solid Waste to be recycled and disposed properly. Discarded old Solid Wastes poles, wires, from transformers etc. needs Construction Water and Soil Region Moderate Temporary to be hauled back from Sites and Contamination al the site and disposed Discarded properly in compliance Materials with best waste management practice and Basel Convention Storage of oils in well lighted space at a distance from everyday construction activity under a roof, also containers should be place over a concrete platform but not placed directly in ground. Pollution of Designing and Accidental Oil Aquatic Region High Temporary installing Effective Oil Spill and Fire Environment and al Containment Measure Injury or Death such as oil retention pits drained by pipes from oil containing equipment. Effective station discharge control system should be constructed that selectively drains the rainwater in the pits but

Potential Institutional Project Activity Magnitude Extent Duration Mitigation Measures Adverse Impact Responsibility prevents spilled oil from escaping. Use of standard procedures such as that of IEEE to be followed. Adequate compensation for structures that cannot be avoided by the transmission line. Maintaining adequate ROW, and distances for over ground and underground lines respectively. Awareness of safety distance to be maintained with the transformers (that will remain over ground) for the underground works and proper handling of transformers to ensure no dripping of oils occur and pollute local environment. Improper distance Mainly for Pathlaiya from houses, trees Parwanipur 132kV building and other Stringing works High Local Permanent HTLS replacement obstruction areas in national park resulting in safety and Piluwa Forest are issues zones of movement of elephant. Work during season of movements of elephant mainly during monsoon should be avoided. Area is close to Parsa National Park for 2 km forest area poaching activities adjacent to park needs to be prohibited and regular spot checks needs to be done. Areas within 10m from ditches, drains, rivers, flood ways are susceptible/vulnerable to flood hazard. Designs need to take such factors into account. Ensure automatic Safety and Hazard Commissioning Moderate Local Temporary circuit breakers are such as fire installed Operation and Maintenance Noise from Boundary walls will act NEA to include Disturb peaceful distribution lines Low Local Temporary as barrier, burying lines EMP provisions environment and substations will eliminate the issue. in operations

Potential Institutional Project Activity Magnitude Extent Duration Mitigation Measures Adverse Impact Responsibility Domestic Contamination and Recycling of domestic Wastes from and pollution of maintenance Low Local Temporary waste and wastewater substations and ground and program; treatment is possible storage yards surface water industrial waste Potential soil and management ground water services to be Secure on-site storage, Management of pollution including procured with Region or off-site disposal at Decommissione Polychlorinated Moderate Permanent licensed al licensed facility if d Equipment Biphenyl (PCB) contractors as necessary from old necessary. transformers Fugitive NEA to ensure Emissions such as Specify non-CFC and adequate Leakage, Green House Gas non-halons equipment, inspection and degradation and Emissions from Low Global Permanent install SF6 circuit maintenance wearing Chloro Fluro breakers with Carbons (CFC), monitoring plan SF6 and Halons Dedicated trained team for Alarm System for oil spill, fire control mechanism, timely inspection and maintenance of oil containment systems. Use of oil spill cleanup systems such as NEA to ensure vacuum, skimmers. Pollution of adequate Sorbents needs to be Accidental Oil Aquatic Region inspection and High Temporary used. Finally, the Spill and Fire Environment and al maintenance of contaminated materials Injury or Death spill control need to be disposed systems carefully. Standards such as IEEE Spill Prevention Control and Countermeasures (SPCC) procedures needs to be followed for these precautionary and corrective measures.

B. Mitigation Measures 132. Potential impacts have been avoided through selection of sites, use of modern technology to reduce footprints, improve safety, and efficiency and reliability of service e.g. through gas insulated substation (GIS) technology, underground distribution and aerial bundle cable (ABC). Ensuring timely restoration of working areas and temporary camp sites after construction work is important. Adequate code of conduct so as to avoiding hunting and illegal activity beyond work hours will reduce poaching in construction sites passing through forest and close to forest areas.

133. For the substations, earth works will be done with erosion control measures and slope stability measures using bioengineering and retention walls will be incorporated into detailed designs as well as necessary drainage of any seeping water through cut slopes. Leaching of oil spills will be controlled through bunding, and timely inspection and maintenance of vehicles and transformers. Such chemical hazard posing equipment will be placed away from water sources. Clearly visible warning signs will be placed about dangers and hazards of the electrical

65 components and approach roads will be maintained to reduce dust pollution. Moreover, support for local social projects, trainings in skill development, provided by NEA under corporate social responsibility remit, will ensure rapport building with local communities and local leaders of the area.

134. The distribution line extensions of Output 3 will be routed with minimal impact to cultivated land, forest land and houses. Ecologically sensitive areas in Province 2 will be avoided. Placement of poles will be done with secure foundation and anchoring with adequate sag to the lines as well as automatic circuit breakers to improve safety. Adequate caution will be taken to place transformers securely where on one hand it can be accessible and monitored easily while on the other hand placed securely within fenced area to prevent thefts41. For certain districts (Sarlahi, Mahottari, Dhanusha and Saptari Districts), construction work will be avoided in areas of elephant corridors (forest areas) during their movement seasons. Adequate caution will be taken with awareness on poisonous snakes of the Terai region such as training on awareness, availability of first aid for snake bite emergency, avoidance of potential habitats of such snakes (such as rodent infested areas), and avoidance of rainy days for work. For works in 250m, 100m and 10m proximity to historical sites permission and varying presence of experts from Department of Archeology (DOA) will be required.

135. Air and noise pollution will be reduced by minimizing use of heavy machinery during construction. Temporary nuisance to the residents and pedestrians during movement of the equipment and materials for substation as well as burial of electric lines may be unavoidable. However, it will be minimized with effective communication about the project and its benefits prior to construction starting. This will reduce chances of potential conflicts. Traffic police will be informed on the construction schedules for effective traffic management to reduce jams which will result in increase in air pollution from tail pipe emissions. Studies have shown that slow moving vehicles stuck in traffic jams with running of initial gears with frequent braking emit more air pollutants such as incompletely burned fuel from tail pipe that results in higher particulate as well as Carbon Monoxide (CO) emissions. Water sprays over approach road (earthen road) for movement of construction equipment will be necessary for dust suppression. Contractor’s equipment will need to meet Nepal air and noise control standards.

B1. Waste Management

136. NEA’s current practice is to store used equipment and materials at designated storage and maintenance facilities. Equipment is reconditioned and stored on-site, then redeployed if possible. Used equipment which cannot be redeployed, and other construction waste will be disposed of following international good practices per the EHS General Guidelines on Waste Management and national regulation.

137. In addition to the electricity lines the telephone and internet cables use the electricity poles in very large numbers which needs to be managed when the undergrounding works will remove the poles from the project sites through prior consultation with utilities; there should be no disruption to electricity supplies and other utilities during work and contractor will need to repair any damage caused.

138. Health hazards from potential explosions of fire, electric shocks and accidents to staff and the public will be minimized through implementation of measures including i) designs and appropriate technologies to minimize hazards; ii) safety awareness raising for construction and

41 There have been reports of the history of thefts of transformers for copper coils which are sold.

66 operational staff and the public; iii) substations equipped with modern fire control system; iv) provision of adequate water supply and sanitation facilities for substation and construction camps, v) emergency and safety response team trained to coordinate with security systems in case of an natural or human induced disaster such as storms and fire which lead to large scale destruction of infrastructure, vi) provision of adequate staff training in operations and maintenance, vii) security fences and barriers around substations and in the proximity of public places such as schools and viii) warning signs about distance to be maintained from transformers of underground distribution network that are placed over ground. 139. NEA will require the contractors to segregate wastes at construction sites into recyclable and non-recyclables. Good housekeeping will always be enforced in the labor camps. Construction wastes will not be left and will be disposed of in designated places approved by the government.

B2. Monitoring and Oversight

140. Monitoring and oversight are included in the EMP, which is discussed in Section 6. Construction contractors will follow World Bank EHS General Guidelines and sector guidelines for Transmission and Distribution and prepare and implement CEMP and Health and Safety plans etc. Project implementation consultants will conduct periodic inspections of construction sites and will conduct air, noise and waste monitoring as necessary.

B3. SF6 Management

141. SF6 is used as an insulator and electric arc arrestor in electrical equipment such as lightening arrester, high voltage circuit breakers, transformers, and switches/switchgears. SF6 is a potent greenhouse gas with a global warming potential of 23,000 times that of CO2. There is always a risk of leak during installation and operation: the standard fugitive emission rate is 0.1% per year.

142. Gas leakage may occur due to poor gas handling practices during equipment installation and maintenance. Leak sources will be identified in a timely manner using handheld leak detector and regular monitoring of SF6 levels. Data on existing SF6 containing equipment will be recorded in an annual inventory beginning with equipment installation.

143. As part of the operating procedures, the substation operators will monitor SF6 pressure in active switchgear and will maintain inventory control on amount of SF6 purchased and consumed (GIS switchgear includes pressure gauges for monitoring). The inventory will be continuously updated upon purchase and retirement of SF6 gas cylinders and equipment in order to track the movement of SF6 in and out of the GIS substations. Inventory control includes the following:

(i) Start of the year – the number of fully-charged cylinders (not equipment) and the amount of SF6 contained in each cylinder; (ii) End of the year – the number of fully-charged cylinders (not equipment) and the amount of SF6 contained in each cylinder;

(iii) Monthly purchases and acquisitions of SF6– includes purchases of cylinders and equipment with SF6 within the equipment, and SF6 returned for off-site recycling (i.e., the supplier receipts and QA/QC certificates will be the basis of the amount of SF6 (in kg) entering the substation);

(iv) Sale and disbursements of SF6 – includes those sold and disposed cylinders and equipment (if any) with residual SF6 contained within the equipment, and SF6 sent for off-site recycling; and (v) Change in equipment nameplate capacity – the nameplate capacities of retired and new equipment will be recorded.

C. Cumulative and Induced Impacts 144. The proposed project is in continuation to the PTDEEP for modernizing the power grid to address rising demand and supply as well as reducing leakage of electricity. The supply side increase is being projected with commissioning of Chamelia (30 MW), Kulekhani III (14 MW), Upper Trishuli 3A (60 MW), and Upper Tamakoshi (456 MW) hydropower plants from 2019-21. Upper Tamakoshi will be evacuating power through the existing (under construction) New Khimti Substation, although it is not an associated facility because the transmission line from Tamakoshi to Kathmandu (being constructed under an ongoing ADB loan) will be initially charged to 220 kV only and thus even if the 3 substations under the PTDSSP are not upgraded to 400 kV the line will still be operational. Therefore, substation capacity augmentation work proposed under the PTDSSP is being undertaken independently of the Tamakoshi to Kathmandu line which is concluded not to be an associated facility to the PTDSSP. Following figures show the power network diagram and relationship between existing/ongoing work and proposed work under PTDSSP.

Figure 3: Power System Network Map of Nepal

Figure 4: Diagram Showing Relationship between Existing/Under Construction work and work Proposed under PTDSSP

145. In terms of reducing losses Province 2 (has areas with largest losses with aging infrastructure reported by NEA and with 20% of consumers devoid of power) is included in the SASEC PTDSSP. The induced impacts are benefits resulting from improved reliability, quality and reduced losses of electricity. Through which public safety will increase on one hand, on the other financial losses will decrease. Moreover, with better reliable power, consumers share of electric bills towards cooking and transportation will also increase. This projection can be supported with the projection of increasing Nepal’s per capita GDP from 728.4 USD in 2017 to 800 USD in 202042. The Nepal Telecommunications a major communication partner in Nepal has indicated that between 2016/2017 to 2017/2018 increases in 10.76% in data demand for internet service, mostly for video streaming. Other impacts include constraints of industrial developments as well as power supply in current Birgunj and Simara Parwanipur corridor resulting in shifts of industries to Pokhariya area. This will be induced impact of transmission line and substations proposed under the project. The implementation of this project will increase livelihood activities of local communities; one of the consultations identified fish farming that can result in freshwater pollution.

42 https://tradingeconomics.com/nepal/gdp-per-capita

D. Enhancement Measures

D1. Skill Development Program

146. Construction related training programs such as electrical wiring training will be conducted for the affected people. The associated costs are shown in Table 7.

Table 7: Skill Development Cost Unit Expenses Quantity Price/Month Total ($) Electrical Wiring Trainer 4 225 900 Communications Costs 2 month 22 44 Report Preparation 70 Training Materials 40 80 3200 Training Venue and Equipment 2 month 200 400 40 days (40 Food and Accommodation 10 16000 persons) Interpreting Electricity Bill and Awareness Training 2,000 2,000 Training on Crop cultivation to prevent Crop Raids by 5,000 5,000 Elephant

D2. Incorporation of Bird Markers in Settlements of Saptari District Close to Koshi Tappu Wildlife Reserve

147. The cultivated land (wetland cultivation of rice) close to Koshi Tappu Wildlife Reserve is seasonally visited by wetland birds which are prone to be electrocuted over distribution lines (5.7 km of 33 kV line crosses over paddy field and 2.8 km of 11 kV line away from settlements but close to paddy field) therefore to increase their visibility bird markers/diverters will be placed on lines crossing close to the reserve (over cultivated land) but away from settlement areas (with distance of each diverters of 8 m spacing at the cost of $51 per each amounting to $54,366) to effectively mitigate adverse impact (Annex 2 photo of electricity line running over cultivated land) (Table 8).

Table 8: Bird Diverters for Kanchanrup Municipality 11 kV Line Location for Bird Distance Number of Bird Total Cost of Bird Municipal Ward Markers (m) Markers Markers ($) Ghoghanpur 290 36 1,849 Kanchanrup-6 Paraimara 639 80 4,074 Kanchanrup-5 Rampur to Bakal 1,400 175 8,925 Kanchanrup-4 Jhankatta to Kanchanrup-4 470 59 2,996 Kabilasa 33 kV Line Beriyar to Kanchanrup-4, 5, 6, 7 5729 716 36,522 Ghoghanpur & 8 Total 8528 1066 54,366

Map 9: Areas in Kanchanrup Municipality Close to KTWR Requiring Bird Diverters in Dotted Ellipse

VI. INFORMATION DISCLOSURE, CONSULTATION AND PARTICIPATION

A. Consultations and Participation

148. During the preparation of this IEE public consultations/meetings were organized. Meetings were conducted in villages where the substations are proposed and also in villages along the alignment of the transmission/distribution lines. Formal and informal discussions were held, and participants were informed about details of the project. The purpose of the meetings was to:

• provide information to the public on the key features of the project including benefits, potential impacts and how such impacts will be avoided or managed. • obtain views and concerns of communities with respect to environmental and social issues relating the project. • gather site specific information from the stakeholder’s perspective on the physical and social aspects of the environment.

149. Public consultation was conducted in August and September 2016 and February 2017 at sites of Distribution Centers and substations for the PTDEEP that are now included in the PTDSSP. These sites include Barhabise Substation, Lapsiphedi Substation, Dharmasthali, Rupshetar and Jorpati consultations which come under Balaju, Baneshwor and Jorpati Distribution Centers. The consultation details were included in Chapter V of the approved IEE Report in 2018. Further consultation works were carried out in Baneshwor DCS areas of Ward number 32 and 34 on 7 July 2019 and Ward Numbers 8 and 10 on 9 July 2019 in respective ward offices. Likewise, other consultations and transect walks were carried out at Balaju DCS and Kuleshwor DCS. Consultation works at Pokhara in the Lakeside tourist area was done on 30 September 2019 (Map 15a location of all consultation carried out for the project). Consultations for Janakpur DCS around Parikrama sections of Janaki Temple (now excluded from the project scope) were conducted in 18 October 2019 and 22 October 2019 with suggestions from DOA also incorporated after disseminating information of the project to DOA experts.

150. Consultation work for Province 2 was done between 3 June to 7 August 2019 (Map 15 and 16). Preliminary consultation work was carried out at Pandey Barwa of Bahudarmai Municipality, Ward Number 5 where a distribution substation will be constructed (Annex 3).

151. Consultations were held with local communities, landowners, village heads and affected people during preparation of this IEE and will be continued during implementation. The communities were informed in advance about the consultation dates and agenda and were encouraged to attend consultations including female member(s) of their family. Issues associated with environment, health and safety were discussed during these consultation meetings.

152. Besides this there were several informal consultation session and focus group discussions organized as part of the project. Details of stakeholders and public consultation meetings, list of participants, photographs and records are included in Annex 3.

153. During consultations, local communities repeatedly cited economic, social and environmental project benefits. Villagers have shown their support to the project and want their villages to be electrified as a priority. People have shown their willingness to participate in the

73 construction activities. The process of public consultation will be continued during project implementation and as necessary during the O&M stages.

Map 9: Consultation Locations in Kathmandu

Map 11: Consultation Locations Outside Kathmandu

Map 12: Consultation Locations All Over the Project Area

Map 10: Project Consultation Locations Where Elephant Make Visits

B. Information Disclosure 154. All environmental safeguards documents are subject to public disclosure, and therefore will be made available to the public. NEA and ADB agree that in disclosing environmental information for the project to the public that:

(i) NEA is responsible for ensuring that all environmental assessment documentation, including the IEE and environmental monitoring reports, are properly and systematically kept as part of the NEA project specific record; (ii) all environmental documents (IEE and environmental monitoring reports) are subject to local public disclosure, and will therefore be made available to public through publication on the NEA website and posting notices of availability of hard copy to be provided by NEA on request in affected village communities; (iii) the IEE and environmental monitoring reports have to be disclosed on ADB’s website upon receipt, any update to the IEE during project implementation will be subject to ADB review and clearance before disclosure; and (iv) NEA will ensure that meaningful public consultations, particularly with project affected persons, are undertaken throughout preparation and implementation of the project.

VII. GRIEVANCE REDRESS MECHANISM

155. NEA has an existing procedure to receive inquiries and complaints about project related activities (developed for other ADB projects) as well as for responding to such inquiries and complaints. NEA will establish a Grievance Redress Committee (GRC) to handle issues from project affected persons, document issues raised and resolution of issues. The GRC will be headed by the NEA project manager; other members will include chairpersons of the relevant Rural/Urban Municipalities or Sub Metro or Metropolitan City (Local Level Governing Bodies), and a representative of the affected persons. Affected persons will be given the opportunity to present his/her concerns/issues at the GRC. The GRM is based on three levels of action aimed at resolving issues as soon as possible (normally within 15 or 30 days) as described below. Details of NEA’s internal process of handling grievances are described in para 162 with figures. 156. First Level of GRM. The first level of intervention will be informally to construction contractors and project implementation consultants, and then formally, if necessary, to the Rural or Urban Municipalities or Metropolitan City Local Governing Bodies. Given the nature of the project outputs, the construction manager should be able to resolve most issues informally, possibly with assistance of the project implementation consultants. All such informal issues/concerns and their responses must still be documented. The contractor and project implementation consultants will record: (i) the name of the person(s) making the complaint, (ii) the date the complaint was received, (iii) the nature and location of the complaint, and (v) how the complaint was resolved (if resolved). This information will be forwarded to the PMD and made available on request to the Local Governing Bodies (Rural/Urban Municipalities or Metropolitan City). If the complaint or issue is not resolved informally, the affected person may formally submit the complaint to the Rural or Urban Municipalities or Sub or Metropolitan City for resolution. If the issue is not resolved within 15 days of being raised, it will be referred to the second level of GRM.

157. Second Level of GRM. If the grievance remains unresolved the Local Governing Body will forward the complaint to the NEA PMD, with notification to the affected persons of this action. The PMD will respond to queries and seek resolution regarding various issues including social, or livelihood impacts and environmental impacts. The PMD will direct the project implementation consultants and construction contractors to undertake corrective measures in the field. Information previously collected on affected person, date of complaint, etc., will be expanded to include the second-level efforts to resolve issues. If the issue is not resolved within 15 days of receipt, it will be referred to the third level of GRM.

158. The Third Level of GRM is the GRC, which will meet when necessary with all costs of each hearing borne by the project. The GRC will suggest corrective measures at the field level and issue directions that these measures are to be implemented within 30 days. The NEA PMD will assign a project safeguard specialist to act as the GRC secretary, responsible for processing and placing all documents before the GRC, recording decisions, issuing minutes of the meetings and taking follow-up action to see the formal orders are issued and the decisions are carried out. At this level, issues are expected to be resolved within 30 days.

159. Fourth Level of GRM. If all the above resolutions methods fail, the affected person can seek legal redress through Nepal’s judicial system or appropriate administrative system. 160. In the context of the proposed project, there are potential language and other communication barriers therefore the contractor will nominate a community liaison officer to raise awareness of the GRM through written notices but also through meetings etc. Potentially affected people may have mobile phones, radios, and televisions, but may not have ready access to

77 internet. Therefore, complaints should be received verbally or in writing on site by the contractor and not be required to be submitted online.

161. The current internal process of NEA for handling grievances is done through the project management directorate’s (PMD’s) 22 different projects with 15 members of staff in Kathmandu and observed by a project manager. Within these projects 5 division offices exist (currently being expanded). Each of the Division Offices (Map 14 and 15) is headed by Engineers and further division offices are being added by NEA. Each Division Office is subdivided into Sub-division offices which are headed by an overseer. The grievance is monitored at field level by these subdivision level overseers who along with the Ward Chief of the project sites put effort to resolve the issue. While doing so, the Division Office is informed and they make effort to solve the problem along with the ground level inter government departments such as District Forest Office, Chief District Officers and Provincial level leaders. If the issues are not solved, then the project manager at PMD gets involved to address the grievance. If the grievances are not resolved at this level (usually it is observed that grievances are addressed at Division Level) then he or she can seek legal judicial help. In addition to this, a separate Environment and Social Division team is being created at PMD headed by a Director.

Map 11: GRM Mechanism for NEA

Map 125: GRM in NEA

VIII. ENVIRONMENTAL MANAGEMENT PLAN

162. The EMP has been developed as part of the environmental assessment to avoid, minimize, and mitigate potential negative impacts of the project. The EMP comprises routine environmental monitoring to support mitigation of potential impacts from construction and operations. The EMP includes the following:

(i) proposed Corrective Action Plan for existing facilities (Annex 6); (ii) proposed quantitative monitoring plan and parameters (Table 9); (ii) proposed management and mitigation activities (Table 10); (iii) description of responsibilities and authorities for mitigation and monitoring, reporting, and review; (iv) preliminary work plan (Table 11); (v) preliminary cost estimates (Table 12); and (vi) capacity development plan (Table 13). 163. The EMP will be updated during the project design and implementation stages as necessary based on field conditions, construction contractor performance, and stakeholder feedback. The purpose of the EMP is to guide the pre-construction, construction, and operational periods of the project as per Nepali and ADB environmental requirements. The EMP is dynamic and will be updated and modified as necessary and appropriate based on contractor performance and monitoring results. Modifications to the EMP will be made by PCO and included in the twice- yearly progress reports submitted to ADB. Any update to the EMP will need to be cleared by ADB.

164. The EMP will be part of the contract documents and during detailed design, pre- construction and construction relevant measures will be implemented by NEA and the respective contractor under the supervision of NEA and the PIC.

A. Proposed Corrective Action Plan 165. Since the project involves existing facilities that have been subject to environmental audit it is necessary for corrective action to be undertaken. Annex 6 contains the corrective action plan for existing facilities; unless otherwise indicated, all actions are to be completed by NEA prior to the contractor being given access to the project sites.

B. Proposed Monitoring Plan 166. Table 9 presents the minimum provisions for quantitative environmental monitoring and performance standards for implementation of the project. Quantitative monitoring activities may be modified during project implementation, depending on contractor performance and analytical results. If environmental performance is worse than expected, corrective measures will be identified, and monitoring activities will be adjusted accordingly to resolve any problems. In addition to quantitative monitoring there will also be supervision and monitoring of EMP implementation, the performance standard being all EMP measures are implemented in full at the appropriate time.

167. Transmission/distribution systems including lines and substations do not emit conventional pollutants, except for emissions from construction activities, used equipment and materials, and domestic wastes from substations. Potential spills of fuel, lubricating oils, and transformer oils would be localized and unlikely to result in detectable pollution of surface waters.

168. Once the loan has become effective, NEA will prepare and submit environmental monitoring reports to ADB; semi-annually up until the completion of construction and then annually during operation up until the project is closed, or for a longer period if this is specified in the project completion report. The environmental monitoring reports will describe project implementation progress, any scope or design changes, compliance against safeguards loan covenants, progress of environment activities, quantitative monitoring results in accordance with the EMP, grievances received, and a time bound, budgeted corrective action plan for any breaches of performance standards or other non-compliances recorded by NEA and/or their contractors.

Table 9: Minimum Provision for Environmental Monitoring

Parameters to Performance Location Measurements Frequency Responsibility be Monitored Standard Detailed Design and Pre-construction Stage Air: SPM, Substation Spot check for Air and noise PMD supported No exceedance Noise: dB(A) boundaries and noise and dust sampling and by of national nearest using analyses: at Implementation ambient air receptor within professional, least two Consultants quality 100m to each calibrated periods prior to and other third- standards (or substation. portable start of party services. no worsening if Underground monitoring construction. exceeded) and transmission devices. For SPM record NEA / PMD to no exceedance lines; one 24-hour include IEE and WHO noise receptor averages over a EMP in bidding guidelines (or adjacent route fortnight during documents. less than 3dBA in the built-up dry season. For increase if area. noise record 1- exceeded) at hour LAeq site boundary levels over 48 and properties hours including within 100m. workday and weekend. Construction Stage Air, and Noise: Same as in pre- Same as in pre- Same as in pre- Same as in pre- Same as in pre- same construction construction construction construction construction parameters as stage stage stage: at least stage stage in pre- quarterly at construction each site during stage ongoing construction. Health and All sites, Records and Weekly spot Contractor to Zero lost time safety including interviews with checks by keep records, incidents or incidents: equipment workers and NEA/PMD and NEA / PMD to fatalities, all record keeping staging areas community monthly audit supported other incidents and any camps reporting by by have adequate contractor Implementation response plan Consultants Construction All sites, Records, site Weekly spot Contractor to Transfer of all wastes: record including visit visual checks by keep records, construction keeping equipment inspection of NEA/PMD and NEA / PMD to wastes staging areas waste monthly audit supported documented, and any camps generation and reporting by by and all wastes disposal, contractor Implementation disposed of in interviews with Consultants an workers and environmentally community sound manner in accordance with EHS General Guidelines on Construction and Demolition and agreed waste management plan

Parameters to Performance Location Measurements Frequency Responsibility be Monitored Standard Vegetation All sites Records, site Weekly spot Contractor to No trees in cleared: record affecting visit visual checks by keep records, protected areas keeping biodiversity inspection of NEA/PMD and NEA / PMD to cut, all works protected ROWS, photos, monthly audit supported affecting forest areas and interviews with reporting by by land undertaken forest land, workers and contractor Implementation following forest including community and Consultants clearance and in equipment Forest accordance with staging areas Department forest clearance and any provisions camps Areas Close to All sites Records, site Weekly spot Contractor to No works within Ancient especially visit visual checks by keep records – existing and Monument and those in inspection of NEA/PMD and plans and proposed World Historical Kathmandu ROWS, photos, monthly photos, NEA / Heritage Sites or Sites: record Valley re interviews with reporting by PMD to audit buffer zones and keeping Swyambhu, workers and contractor supported by all works within Pashupati and community and Implementation 250m, 100m, 10m Baudha World DOA Consultants of Heritage Sites, boundaries/buffers including and within 10m of equipment nationally staging areas important and any resources have camps required permissions and the appropriate part time or full- time archaeological supervision per the EMP Drinking water: Construction Evidence Monthly Contractor to Drinking water camps. drinking water reporting and undertake tests provided meets meeting testing by and keep drinking water standards contractor, records, PMD standards being imported spot checks supported by or if local and tests by Implementation source used NEA/PMD Consultants drinking water and other third- test results by party services. accredited lab including arsenic tests.

Parameters to Performance Location Measurements Frequency Responsibility be Monitored Standard Operations and Maintenance Stage Noise Substations Spot check for Noise NEA/PMD No exceedance of site boundary noise using sampling and supported by WHO noise and nearest professional, analyses: at third-party guidelines (or less receptor in calibrated least two services. than 3dBA 100m portable periods increase if monitoring following exceeded) at site devices. construction. boundary and Record 1-hour properties within LAeq levels 100m. over 48 hours including workday and weekend. EMF Levels Substations Spot check Once following NEA/PMD No exceedance of using construction. supported by ICNIRP levels, professional third-party ROW maintained EMF services. in accordance with monitoring Electricity Rule. devises, and visual inspection of ROWs. SF6 leakage Substations Record of all Monthly NEA / PMD Leakage <0.1% SF6 leakage supported by and records of and third-party undertaking a maintenance in services. regular GIS maintenance per substations IEE. Bird Buffer Zone of Records of bird Monthly NEA/PMD Zero bird Electrocution Koshi Tappu electrocution, electrocution Wildlife power outage incidents, bird Reserve due to same, markers visual maintained inspection bird markers Health and Substations, Records and Monthly NEA/PMD Zero lost time Safety TL and DL interviews with incidents or workers and fatalities, all other community incidents have adequate response plan

Drinking water Substations Drinking water Monthly NEA/PMD Drinking water supplies quality tests by provided meets accredited drinking water laboratory standards including arsenic tests

C. Proposed Mitigation Plan 169. Table 10 presents the mitigation plan. The mitigation plan will be implemented in three stages: (i) detailed design and pre-construction, (ii) construction, and (iii) operations and maintenance.

170. Health and safety measures are a critical activity of the mitigation plan. As part of the detailed route survey a Health and Safety risk assessment will be undertaken in order that occupational and community health and safety risks can be minimized through design, once the routing work is completed a Health and Safety Plan will be prepared in consultation with the Kathmandu Valley Development Authority, Ministry of Land Reform and Management (MoLRM), Ministry of Federal Affairs and Local Development (MoFALD), Ministry of Urban Development (MoUD), Ministry of Physical Infrastructure, Transport (MoPIT), Provincial Government and coordination with Nepal Traffic Police as applicable to the location.

Table 7: Preliminary Environmental Management Plan

Responsibility Environmental Project Activity Management / Mitigation Measures Planning and Supervision Issues Implementation and Monitoring Detailed Design and Pre-construction Phase

• Prior to finalization of detailed design review the project scope and alignments to confirm no change from those described and assessed in the IEE, if there are any aspects that were not originally included or changed update the IEE. • Prior to finalization of detailed design undertake meaningful consultation with particular attention to women and vulnerable groups in relation to line routings and substation locations once confirmed, document consultations and how community concerns have been responded to in an annex to final IEE. To include consultation with all potentially affected residents within 100 meters of SS boundaries and ROW of the route alignment. • Obtain ADB clearance of the final IEE based on the detailed design, even if no changes to the IEE this is to be confirmed. Detailed Design • For 132kV underground transmission line national IEE to be /Contract EHS Impacts prepared and approved prior to commencement of any PMD NEA Awards works. • Final IEE to be locally disclosed, posted on the NEA website and also notices posted in the vicinity of works to inform of its availability – hard copy to be made available to view on site free of charge on request. • Establishment of GRM and community awareness raising of it before commencement of construction, GRM contact details to be disseminated verbally as well as through noticeboards. • NEA to ensure draft EMP is included in bidding documents and the final EMP cleared by ADB forms an integral part of all the contractual agreements before awarding each contract package.

Responsibility Environmental Project Activity Management / Mitigation Measures Planning and Supervision Issues Implementation and Monitoring

• Project to comply with national and international regulatory framework as set out in Table 1 of the IEE plus other applicable environment, health and safety legislation. • Project to comply with the EHS General Guidelines (April 2007) and the EHS Guidelines for Electric Power Transmission and Distribution (April 2007) in addition to the mitigation set out in this table. • Given high seismic risk ensure the design of all substation foundations and structures and all other civil and structural project components are checked for seismic safety by the design team, as well as independently to confirm that international good practice seismic design standards are being met. • Project components on slopes to incorporate slope stability measures such as bioengineering and retaining walls and adequate drainage with designs checked independently to confirm international good practice slope stability design is Pollution risk and Detailed design followed. PMD/Contractor NEA health and safety • For Bardibas SS measures will be necessary to prevent the land from being eroded in future. • Detailed designs to minimize cut and fill in order to reduce dust creation and the generation of construction spoil for disposal. • Due to pollution risk from oil leaks and sediment laden runoff locate substations and lines at least 50m from surface waterbodies including rivers/canals/wetland areas/ponds and 100m from any groundwater sources e.g. springs, pumps or groundwater wells, especially those used for drinking water. • Detailed design of substations to include adequate sanitation and welfare facilities for permanent workers, including indoor kitchen facilities and adequate number of indoor toilets/washrooms with a hot and cold running water supply connected to either existing sewerage system or to septic tank. Pit latrines prohibited, no untreated sanitary wastewater is to be disposed of to surface or groundwater. Source of drinking water that meets drinking water standards to be

identified, this may require drinking water filter to be included in the detailed design. Groundwater must not be used as a source of water in districts suffering arsenic contamination. • Detailed designs of substations to ensure they are located above maximum flood level (allowing for climate change) and incorporate adequate drainage design connected to existing drainage systems to drain surface water runoff during the wet season; all drainage is to be fitted with oil interceptors to catch oil spill. • For all transformers and related fuel, oil chemical, and waste storage areas the design is to incorporate bunded area to 110% volume of impermeable concrete surface which is not connected to the drainage system in order to incorporate spills; the storage is to also be covered. • For all substations provide secure fence with warning signs to include the ISO 7010 Hazard Type: Electrical Symbol warning of the risk of electrocution. • Detailed design of substations to include adequate life and fire safety provisions in accordance with the EHS Guidelines and national regulations, including fire detectors and alarms, extinguishers in all rooms etc. • Detailed design of SS to ensure noise to be limited to 70 dB(A) at site boundary, 55 (day) and 45 (night) dB(A) at residential areas as 1 hour LAeq. If any properties are within 100m of the site boundary then noise calculations to be carried out to demonstrate that these noise levels will be met. • Detailed design of lines to ensure EMF levels are within international good practice International Commission on Non- Ionizing Radiation Protection (ICNIRP) reference levels (average and peak exposure) and right of ways established in accordance with the Electricity Rule. • Detailed design of lines to ensure their installation of above or adjacent to residential properties or other locations intended for highly frequent human occupancy (e.g. schools or offices) avoided. • Detailed design to ensure that the design of pole mounted lines and transformers can withstand extreme strong winds, such as those experienced in 31 March 2019 tornado event. • Design to provide on all poles visual and written warning

Responsibility Environmental Project Activity Management / Mitigation Measures Planning and Supervision Issues Implementation and Monitoring signages to the public to include the ISO 7010 Hazard Type: Electrical Symbol warning of the risk of electrocution.

• For all ground and pole mounted transformers provide secure fence with warning signs to include the ISO 7010 Hazard Type: Electrical Symbol warning of the risk of electrocution. • Undertake electrical safety community awareness raising activities prior to construction, repeat on the completion of construction.

Parsa National Park • Detailed design of upgrading existing 132 kV transmission lines from Pathlaiya substation to the Parwanipur substation to ensure that works will be confined to the existing RoW in the Parsa National Park boundary and that no trees will be cut, although vegetation can be trimmed. • Existing RoW to be demarcated on the ground by team of NEA, Contractor, and National Park management. • Final design is to be approved in writing by the National Park management. • Construction related facilities including storage areas and Impacts on construction camps will be located either inside the fenced Detailed design protected areas boundary of the Pathlaiya substation or outside of the National and construction PMD/Contractor NEA and sensitive Park. scheduling receptors • Schedule all works in consultation with the National Park management. • Schedule all works within Parsa National Park outside the elephant movement season (monsoon) to avoid disturbance to migration. • No works to be undertaken from 1 hour before sunset to 1 hour after sunrise to avoid disturbance to fauna. • Ensure to undertake all works in accordance with the Parsa National Park Management Plan.

Responsibility Environmental Project Activity Management / Mitigation Measures Planning and Supervision Issues Implementation and Monitoring Pokara, Ramsar Site • Detailed design of undergrounding of feeders in the Kaski district of Gandaki Province to ensure that works will be confined only to the existing road where lines run within the Ramsar site boundary and that no trees will be cut although vegetation can be trimmed. • No new overhead lines will be permitted within the Ramsar site. • No works to be undertaken within 50m of the lake shore to avoid disturbance to this habitat, Baidam Feeder is 50m from it. • Final detailed design plans are to be approved in writing by the Ramsar site management. • Construction related facilities including storage areas and construction camps will be located on an area of existing hardstanding situated at least 100m from the lake shore to reduce pollution risks. • Schedule any noise generating works outside the overwintering and bird breeding seasons to avoid disturbance in consultation with the Ramsar site management. • No works to be undertaken from 1 hour before sunset to 1 hour after sunrise to avoid disturbance to the birds. • Undertake all works in accordance with the Ramsar site Management Plan.

Koshi Tappu, Ramsar Site • Detailed design to ensure that the project component located in the buffer zone of the Koshi Tappu Wildlife Reserve does not encroach into this site and that the final detailed design plans are approved in writing by the Wildlife Reserve management. • Construction related facilities including storage areas and construction camps will be located on existing hardstanding areas situated at least 100m from the boundary of the Wildlife Reserve and any waterbodies being hydraulically connected to it.

Responsibility Environmental Project Activity Management / Mitigation Measures Planning and Supervision Issues Implementation and Monitoring • Schedule any noise generating works outside the overwintering and bird breeding seasons to avoid disturbance in consultation with the Wildlife Reserve management. • No works to be undertaken from 1 hour before sunset to 1 hour after sunrise to avoid disturbance to the birds. • For distribution line works in the buffer zone of the Koshi Tappu Wildlife Reserve detailed design to include marker balls, bird deterrents, or divertors in accordance with international good practice as is described and costed in the IEE.

Other project components • Detailed design of all other project components to ensure that they are situated outside the boundaries or buffer zones of actual or proposed protected areas including World Heritage Sites, Ramsar sites, National Parks, Wildlife Reserves, or Conservation Areas. • Detailed design of all new project components (e.g. network extensions) to ensure that works in forest areas are avoided. • For existing components, detailed design to consider rerouting to avoid forest areas or restricting works to the existing RoW in forest areas; requisite forest clearance to be obtained prior to commencement of works if the forest areas cannot be avoided. • No construction related facilities including storage areas and construction camps will be located in forest areas. In forest areas and within 100m of boundaries, no works to be undertaken from 1 hour before sunset to 1 hour after sunrise to avoid disturbance to the fauna. • As far as is practical, design alignment and height of overhead distribution lines to avoid the need to cut/trim any trees. Cutting or trimming of trees will only be permitted when it is required to meet health and safety clearance requirements; fire risk associated with overhead lines is to be considered.

Responsibility Environmental Project Activity Management / Mitigation Measures Planning and Supervision Issues Implementation and Monitoring • Schedule works in or adjacent forest areas with elephant sightings outside the elephant movement season (monsoon) to avoid disturbance to migration. • Schedule works requiring tree cutting/trimming outside the bird breeding season. • New overhead distribution lines will be designed to be ecologically sensitive with existing lines retrofitted in accordance with international good practice for avian sensitive design described in the IEE para 108 e.g. maintaining 1.5 meter spacing between energized components and grounded hardware or, if spacing is not feasible, covering energized parts and retrofitting elevated perches, insulating jumper loops, placing obstructive perch deterrents, changing location of conductors, and/or using raptor hoods etc. • As far as is practical, line alignments to be designed to be situated within road reserves. Carefully select the line routings to minimize impacts on existing structures (e.g. buildings) and roads, crops, and drains. • Consult individual households or building occupiers and obtain their written consent in cases where new or existing project components run over or adjacent to private properties prior to finalizing the design. • Detailed design of all new project components to ensure that no overhead lines cross (i) the boundaries of school premises or other community facilities, (ii) residential properties, and (iii) national or locally important physical cultural resources. For existing components, detailed design to consider rerouting away from sensitive receptors especially where distribution lines cross school premises including playground/outside areas. • Schedule earthworks and installation of poles during dry season to minimize exposed areas subject to erosion by surface water runoff.

Responsibility Environmental Project Activity Management / Mitigation Measures Planning and Supervision Issues Implementation and Monitoring • Implement the corrective action plan set out in Annex 6 for all Non-compliance existing facilities and submit a report on the status of actions Preconstruction of existing PMD NEA to ADB for clearance prior to the contractor being given access facilities to the site Biodiversity Protected Areas • For project components within the boundaries or buffer zones of protected areas [i.e. Parsa National Park, Pokhara Ramsar Site, Koshi Tappu Wildlife Reserve] a detailed site specific construction biodiversity management plan (CBMP) will be prepared by the Contractor to be cleared by NEA, the relevant protected area management team, and ADB before the Contractor is given access to the site. The CBMP will include the detailed design plans, details of how the works will be undertaken by the contractor including mitigation and monitoring measures in accordance with this EMP and protected area management plan, details of construction related facilities, including storage areas and construction camps, and details of consultations with protected area management. Impacts on • For works in Parsa National Park, Ramsar site, and buffer zone protected areas Pre-construction of the Koshi Tappu Wildlife Reserve NEA will appoint a suitably PMD/Contractor NEA and sensitive qualified and experienced ecologist to provide trainings, receptors monitor and supervise all construction works on a full-time basis for the duration of works in these locations, and liaise with the protected area management. • The ecologist(s) will be delegated the power to make the Contractor halt works if needed. • For works in forest areas, forest guard to monitor and supervise all construction works for the duration of works in these locations.

Kathmandu Valley and Province 2 within 250m of WHS • For works in 250m of the World Heritage Sites NEA will appoint a suitably qualified and experienced archaeologist to provide trainings, monitor and supervise all construction works on a part time basis, and liaise with the DOA for the duration of works in that location.

Responsibility Environmental Project Activity Management / Mitigation Measures Planning and Supervision Issues Implementation and Monitoring • Chance-find training to be provided by suitably qualified and experienced archaeologist before the commencement of works. • Earthworks to be supervised on a part time basis by qualified archaeologist given the higher risk of encountering any chance-find. • RoW to be demarcated on the ground by team of NEA, Contractor, archaeologist, DOA to identify any heritage features that may need additional protection or supervision during works (see measures below for works undertaken adjacent nationally or locally important physical cultural resources).

Kathmandu Valley and Province 2 within 100m of WHS or adjacent national or locally important physical cultural resources • For works in 100m of the World Heritage Sites or adjacent national or locally important physical cultural resources NEA will appoint a suitably qualified and experienced archaeologist to provide trainings, monitor and supervise all construction works on a full-time basis, and liaise with the DOA and local community using resources for the duration of works in that location. • The archaeologist(s) will be delegated the power to make the Contractor halt works if needed. • RoW to be demarcated on the ground by team of NEA, Contractor, archaeologist, DOA to identify any heritage features that may need additional protection or supervision during works. Recommendations of archaeologist and DOA will be documented as part of HPP before works and followed by contractor. • In vicinity of heritage structures, as these may be in poor condition due to age and following the major earthquake, no works that would create mechanical vibration are to be permitted, the Contractor will have to undertake manual excavation/works and ensure not to undermine the foundations

Responsibility Environmental Project Activity Management / Mitigation Measures Planning and Supervision Issues Implementation and Monitoring of such structures or cause any equipment or materials to fall against them. • Chance-find training to be provided by suitably qualified and experienced archaeologist before the commencement of works. • All works to be supervised on a full-time basis by qualified archaeologist given the higher risk of encountering any chance-find and the risk of heritage structures above ground being affected. • For all works within 100m of World Heritage Site or adjacent national or locally important physical cultural resources detailed heritage protection plan (HPP) considering potential damage to both below and above ground heritage will be prepared by the Contractor to be cleared by NEA, DOA, and ADB before the Contractor is given access to the site. The HPP will include chance finds procedure, the detailed design plans, details of how the works will be undertaken by the contractor including mitigation and monitoring measures, details of construction related facilities, including storage areas and construction camps, details of how timing of works re any community use of heritage resources (e.g. pilgrimage routes) is to be managed, and details of the consultations undertaken with DOA and community users of affected heritage resources. • PCBs will not be used in any transformers and any other project facilities or equipment. • Equipment purchased by NEA or Contractor for use on the project to be accompanied by letter from the manufacturer that it is guaranteed PCB free and labelled as PCB free before its Impact of PCB installation. Pre-construction PMD/Contractor NEA use • In the absence of NEA records to confirm transformers are PCB free (ones installed post-1990 should have records) all existing transformers already in-situ must be assumed by the Contractor for health and safety purposes to contain PCBs and the oil must be sampled and analyzed following UNEP Guidelines for the Identification of PCB and Materials

Responsibility Environmental Project Activity Management / Mitigation Measures Planning and Supervision Issues Implementation and Monitoring Containing PCB43 and a health and safety risk assessment and plan referring to the measures in UNEP (2002) PCB Transformers and Capacitors: From Management to Reclassification and Disposal. • Workers must wear suitable chemical and/or oil resistant gloves, goggles, and protective clothing whilst sampling transformers. • Eye wash station and water supply to shower to be provided during sampling due to risk of PCB coming into contact with skin. • If PCBs are found in existing transformers and other project equipment it should be labelled as such and unless the existing transformer is leak-free and being retained in-situ replaced with new PCB free equipment under the project. The Contractor to ensure appropriate transport, storage, decontamination, and disposal of redundant contaminated units; disposal should involve facilities capable of safely transporting and disposing of hazardous waste containing PCBs. • Surrounding soil exposed to PCB leakage from equipment removed or retained in-situ should be assessed by Contractor, and appropriate removal and / or remediation measures should be implemented in accordance with the General EHS Guidelines. • Specify non-CFC and non-halon content in all equipment used.

• Use of child labor (under 18 years) is prohibited, including as Management of assistants etc. EHS issues • The Contractor is to ensure the EMP is an integral part of any Preconstruction PMD/Contractor NEA during subcontractor’s agreement. construction • The Contractor is to appoint for each package one dedicated suitably qualified and experienced Environment, Health and Safety Officer, and nominate a Community Liaison Officer to

43 http://www.chem.unep.ch/Publications/pdf/GuidIdPCB.pdf

undertake ongoing consultation and deal with grievances. • For works in biodiversity protected areas and buffer zones [i.e. Parsa National Park, Pokhara Ramsar Site, Koshi Tappu Wildlife Reserve] the Contractor to appoint a full time ecologist, and for works within 250m of World Heritage Sites or adjacent national or locally important physical cultural resources to appoint a part or full time archaeologist (depending on distance) to provide advice on implementation of mitigation and to supervise works to help to develop and ensure they follow the agreed CBMP and HPP as applicable. • Prior to mobilization, for all works the Contractor is to prepare and submit a construction environmental management plan (CEMP) to NEA for approval, to provide details on how the contractor plans to implement the construction mitigation measures specified in this IEE and EMP and the relevant parts of the EHS General Guidelines on Construction and Demolition and Transmission and Distribution Guidelines. The CEMP will identify temporary construction facilities needed e.g. laydown and storage areas, workers facilities etc. These are to be located at least 100m away residential areas, waterbodies, groundwater wells, and sensitive receptors (houses, schools, clinics, temples, etc.). Local communities to be consulted when selecting sites for project facilities prior to finalization. • The Contractor to prepare for NEA approval a Construction Waste Management Plan (CWMP) in accordance with the EHS General Guidelines on Construction and Demolition and Waste Management. • For all works within or adjacent to public roads the Contractor to prepare for NEA approval a Construction Traffic Management Plan (CTMP) in consultation with relevant local authorities (see para 170) to ensure proper execution of traffic controls including where temporary blockage of one lane of the road during installation is required for health and safety purposes that highly visible guides, advance warning signs or flag persons are in place to direct pedestrian and vehicular traffic. • In the event that existing utilities, structures (e.g. buildings) and roads, crops, drainage, street lighting are affected, the

Responsibility Environmental Project Activity Management / Mitigation Measures Planning and Supervision Issues Implementation and Monitoring Contractor will be required to rehabilitate them to at least their condition prior to construction. This shall form part of the contract documents. Therefore, photographic and structural pre-condition surveys of property including existing utilities, structures (e.g. buildings, especially heritage buildings in Kathmandu Valley) and roads, crops, and drains, utilities, and street lights should be completed by the Contractor and agreed with NEA and the property owner prior to any works. • For undergrounding the Contractor should complete a radar survey (CAT Scan) to confirm presence of any underground utilities/structures to be avoided. Damage to utilities/structures that does result will be repaired by the contractor. • Chance find procedure to be developed for implementation by the contractor in the event the physical cultural resources are found, to include the following procedures: o If suspected physical cultural resources are encountered, all works at the find site should be immediately halted. o The find should be assessed by a competent DOA official, and procedures to avoid, minimize or mitigate impacts to such physical cultural objects should be agreed in writing with them. o Work should not begin until the procedures to avoid, minimize or mitigate impacts to the physical cultural resources have been agreed and implemented in full. o If avoidance is not feasible, and no alternatives to removal exist, and the project benefits outweigh the anticipated cultural heritage loss from removal which is unlikely unless in case of resource of local value, following clearance of ADB the physical cultural resources should be removed and preserved using the best available technique in accordance with relevant provisions of national heritage protection laws and decrees.

Responsibility Environmental Project Activity Management / Mitigation Measures Planning and Supervision Issues Implementation and Monitoring o Records should be maintained of all finds, including chain of custody instructions for movable finds. o All construction workers to be made aware of the chance-find procedure and types of finds to be reported through a training before the commencement of works.

• For all construction works undertake risk assessment through facilitated workshop of NEA and Contractor during detailed route survey since this provides opportunity for any risks to be designed out. • Once line routes confirmed, Contractor to prepare H&S plan(s) in accordance with EHS General Guidelines on Health and Safety and the Transmission and Distribution Guidelines, considering both the occupational and community H&S risks and including adherence to Nepal’s electrical safety standards and labor legislation. • Contractor to develop emergency preparedness and response plan with communication systems and protocols to Preconstruction H&S Risks report and deal with an emergency environmental, health PMD/Contractor NEA and safety situation, for approval of NEA prior to works. • Contractor to conduct training on occupational H&S for all management and construction workers including subcontractors before commencement of works, continue to deliver refresher trainings on a monthly basis through construction period with records of participation kept. • Contractor to conduct training of management and construction workers including subcontractors on emergency preparedness and response procedures in case of an environment, occupational or community health and safety incident during construction works.

ROW Impact on • Consultation with potentially affected residents within 100 PMD in consultation demarcation and sensitive meters of SS boundaries and ROW of the route alignment, with Traffic Police, NEA detailed survey receptors obtain no objection in writing from all the directly affected MoLRM, MoFALD,

Responsibility Environmental Project Activity Management / Mitigation Measures Planning and Supervision Issues Implementation and Monitoring residents. MoUD, MoPIT, and • Identify and mark utility lines (including telecoms and street KVDA. lights) along the impact zone in order to avoid damages to these utility lines; coordinate with Water Supply, Sewer, Telecommunications, Television Cable Lines Providers for alternate stringing and to compensate or restore if damaged. • Unstable slopes to be avoided as identified during consultation at Dharmasthali. • Wetlands are to be avoided. • Coordination with community forest and Government Forest Authority if ROW crosses such areas. • Coordinate with Cultural Heritage Management, VDCs, other government agencies, and private entities in order to avoid conflict. For Kathmandu Valley works assistance through Kathmandu Valley Development Authority may be sought for smooth coordination. PMD to obtain letter, if necessary, from those listed and National Planning Commission, NEA Department of Archaeology, [ADB reviews • NEA to obtain all necessary permissions for Department of bid documents Regulatory Impact on clearance/construction in ROW prior to construction. National Park and and contracts clearance and potentially • NEA to obtain advance notice and no objection from Forest Wildlife no permitting and provides “ sensitive sites Management Committee, National Park Management, and Conservation and objection” prior residents etc. President Chure- to contract Terai Madhesh tender and Conservation awards] Development Board.

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Responsibility Environmental Project Activity Management / Mitigation Measures Planning and Supervision Issues Implementation and Monitoring

Construction Phase • Appropriate contact clauses to ensure satisfactory implementation of contractual environmental, health, and safety measures. • Construction procedure to follow zero soil on the ground policy for ground excavation work in Kathmandu Valley as well as in Bharatpur. Separate Lorries/Trucks for excavated soil or muck to be on site during construction which will haul and dump the soil to an approved location during boring. • Any trench will need to be overlaid/covered with materials like gravel to minimize re-suspension of particulate matters through vehicular traffic movement. • Special attention will be needed to sweep and dispose the soil from the road after construction work is completed. • Construction for the underground distribution lines to be Construction PMD to include IEE segmented to a maximum of 50m at a time to reduce traffic stage and EMP in bidding EHS Impacts congestion. NEA environmental documents/Contract • Adequate barricading with clear signposts of the management or construction site will be necessary. • All these activities will be done under supervision of Environmental Monitors and Social Mobilizers employed by Contractors, Consultants and the government separately who will require weekly monitoring reports to be submitted. • Social Mobilizers will be required to make the construction neighborhood aware of the construction activities in the locality prior to its commencement. • In addition to this all the construction activities will be carried out in coordination with traffic police. • The extension works in Province 2 to ensure private farmlands are not disturbed, caution is maintained that transformers are not placed close to water bodies, dripping of transformer oil does not take place and adequate

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Responsibility Environmental Project Activity Management / Mitigation Measures Planning and Supervision Issues Implementation and Monitoring distance from neighborhood trees and houses are maintained. • Adequate sag and tension to be maintained to avoid houses and trees. • Adequate planning and placement of equipment to reduce water logging issues in substations areas. • Gender sensitivity to be maintained and child labor (under 18 years old) to be prohibited. • The proposed site for all the new substations do not have proper drainage system. Therefore, adequate drainage will be constructed per detailed design with oil interceptors installed. • Other substations are upgradation work on existing acquired site. IEE for Barhabise and Lapshiphedi have been approved. • Slope stability work will be carried out at the northern section of Barhabise Substation Site. • Watering of the earthern access road sprinkled with water during the construction period to mitigate dust related issues with local population due to frequent movement of construction vehicles. • For 132kV tranmsission line construction works along Gandak Canal and 10 crossings along at AP 2, 4, 6, 8, 9, 10, 11, 12, 16 and 20 needs to take into account with erosional issues and surface water pollution risk. • Restoration works needs to be done immediately after digging • Dripping of oils into the aquatic environment needs to be avoided. • Soil erosion and surface water runoff to be minimised by reducing extent of earthworks, revegetating earthworks on completion, and covering with tarpaulin stores of sand and spoil. • Contractor to avoid ponding of water during construction to avoid habitat creation re vector borne diseases e.g. malaria.

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Responsibility Environmental Project Activity Management / Mitigation Measures Planning and Supervision Issues Implementation and Monitoring • Contractor will need to ensure that existing electricity supply connections and other utilities including telecomes and street lights are maintained during and after the completion of works in consultation with utility providers or alternative arragements (e.g. underground conduit) agreed. • All construction work will need to ensure poaching, hunting, fishing and burning of firewood is prohibited, including that worker camps do not use firewood for cooking and heating. • Undertake works requiring tree cutting/trimming outside the bird nesting/breeding season. • Removal and disposal of identified invasive plant species in an ecologically sound manner. • If any protected species are encountered during works they should be immediately halted, workers to leave the area, and the advise of ecologist, and if in protected area the protected area management sought and their recommendations will be followed. • Compensation arrangements for loss of crops per the Resettlement Plan. • Province 2 line extension works in any agricultural will need to be compensated for the loss in accordance with the Resettlement Plan. Potential loss of • Any mechanised digging tools and vehicles carrying poles productive Site Clearances and transformers can destroy crops in farmland which NEA/Contractor NEA agriculture and needs to be compensated in accordance with Resettlment trees Plan or the work needs to be done when the land is barren. • Construction works near agricultural land needs to ensure damages to crops, other utilities are not done during stringing works and fixing of distribution transformers.

Health and • Follow design drawings and implement careful Construction Physical safety risks and construction practices to avoid damage to existing Contractors will PMD to conduct construction: damage to structures (e.g. buildings) and roads, crops, drains. follow World Bank periodic spot properties • Demarcation of the working area and avoid EHS guidelines and checks to

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Responsibility Environmental Project Activity Management / Mitigation Measures Planning and Supervision Issues Implementation and Monitoring manual labor encroachment outside the agreed corridor of impact. implement CEMP confirm and mechanized • Safe access to property and roads should be maintained approved during pre- compliance rd construction and alternative routes and access provided where there construction. utilizing 3 -party are temporary diversions or blockages services as Project necessary. • Stockpiling of concrete poles, spoil and cable reels shall Implementation be away from properties and only in designated areas Consultants to [ADB will where no access will be blocked. conduct monitoring conduct regular • Implement traffic management controls during and inspections. review missions construction works with advance warning signs or flag as part of project persons to ensure health and safety of construction implementation] workers and road users. • Road safety and warning signs must be posted at 500m, 100m, and immediately in advance of the works at least two weeks prior to the works commencing to inform the public of the temporary blockage of one lane of the road. • Avoid works during peak traffic hours if possible and on days coinciding with local cultural or religious processions • Boundary walls to be constructed prior to works so as to act as a barrier for noise, safety etc. • Scaffolds will be constructed to protect pedestrians and vehicles (and the conductor itself) from potential injury /damage during conductor stringing • Construction techniques and machinery selection to minimize noise and vibration. Noise to be limited to 70 dB(A) at site boundary, 55 (day) and 45 (night) dB(A) at residential areas as 1 hour LAeq. To meet these standards may require staging of noisy works to limit their duration. • Works will be of short duration and management of timing of high noise causing construction works keeping in mind the sensitivity of lifestyle of neighbourhood can reduce potential conflict, i.e. works early morning and evening, night and weekend, holidays, and school exam periods to be avoided.

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Responsibility Environmental Project Activity Management / Mitigation Measures Planning and Supervision Issues Implementation and Monitoring • Workers subjected to 80dBA for more than 8hours per day to be provided with hearing protection e.g. if using breakers. • Construction equipment to be maintained in accordance with national standards for noise exposure to workers. • Construction period to be selected in coordination with Traffic Police and Local Communities. • Communication of the construction timings, its nature and its post construction benefit at least four weeks prior to actual construction work verbally and through notices at the site to reduce conflict with local people. • Require workers to confirm they have seen and understood the requirements of the OHS plan before proceeding with the work. • Only allow suitably trained and qualified workers to be allowed to work on electrical equipment and at height, these workers must have training record of attending suitable training course on electrical safety and working at height. • Provide PPE for workers in accordance with Table 2.7.1. Summary of Recommended Personal Protective Equipment According to Hazard in EHS Guidelines on OHS. • Enforce disciplinary system (e.g. immediate removal from site) for non-compliance with PPE requirements • Require workers to observe the EHS Guideline on Construction and Demolition • Require workers to observe EHS Guideline on T&D requirements for working with live power lines • Ensure proper grounding and deactivation of live power lines during construction work or before any work in close proximity to the lines and this will be checked and certified by Health and Safety Officer in advance. • Only suitably trained workers that meet the requirements

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Responsibility Environmental Project Activity Management / Mitigation Measures Planning and Supervision Issues Implementation and Monitoring set out in EHS Guidelines on Transmission and Distribution (T&D) to be allowed to work on live power lines with strict adherence to safety standards including those listed in the EHS Guidelines. • Require other workers to observe the minimum approach distances for excavations, tools, vehicles, pruning, and other activities when working around power lines • Require workers to observe EHS Guideline on T&D requirements for working at height • Require workers to test the structural integrity of poles prior to proceeding with the work. • Use fall protection measures when working on poles, i.e. mobile elevated working platform, all workers are required to wear body harness. • Unless transformers have been certified PCB free workers must wear suitable chemical and/or oil resistant gloves, goggles, and protective clothing whilst working with transformers. Eye wash station and water supply to shower to be provided during works due to risk of PCB coming into contact with skin. • During construction works ensure qualified first aider and trained fire marshal is available on-site at all times with an appropriately equipped first aid kit and appropriate fire extinguisher and other firefighting equipment immediately available for use • Arrange with nearest Health Center and/or Hospital for emergency cares of workers • Do not leave hazardous conditions (e.g. unlit open excavations without means of escape) overnight unless no access by public can be ensured • During construction works provide signage detailing site and office contacts in case of grievance.

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Responsibility Environmental Project Activity Management / Mitigation Measures Planning and Supervision Issues Implementation and Monitoring • Provide all construction workers will an adequate supply of potable drinking water. Groundwater must not be used as a source of the drinking water due to potential for high arsenic levels. If surface water is used it must first be tested to confirm it meets drinking water standards and continue to be regularly tested every week. If drinking water standards are not met, potable water to be imported to site. • Contractor to prepare and implement a health and safety plan including worker training and daily/weekly briefings. • At Province 2 awareness and training on snake bites and precautionary measures for avoidance needs to be provided i.e. avoid work after rain, flood, and in the crop ripening seasons, cautiousness while putting hands in holes (particularly in areas with high density of rodents) and avoiding works during night. • Contractor to provide training on HIV/AIDS. Sanitation and Health and • Placement of automatic circuit breakers and power cut welfare facilities safety mechanism for extreme weather events resulting in breakage of lines. • Any construction camps will include proper sanitation, alternative fuel to firewood, clean eating area, water supply, and waste disposal facilities, including primary treatment for domestic sewage (pit latrines prohibited, adequate number of toilets with hot and cold running water to be connected to existing sewerage system, septic tank, or self-contained units for disposal of wastewater off site to sewage treatment works) and secure storage of domestic solid wastes for disposal of site to suitably licensed landfill site. • Sufficient toilet facilities should be provided for the number of workers, and there should be an indication of whether the toilet facility is “in use” or “vacant” if not segregated. • Any health and safety incidents (near miss, minor, lost time, fatal) involving workers or community to be reported

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Responsibility Environmental Project Activity Management / Mitigation Measures Planning and Supervision Issues Implementation and Monitoring to PMD within 24 hours of occurrence with a response plan detailing the incident and how its reoccurrence will be avoided, PMD to report any lost time or fatal incidents to ADB within 48 hours. • Sediment laden runoff during construction must not be permitted to discharge directly to surface water, it should be discharged through sedimentation basin and oil interceptor. • No washing of equipment or plant in surface water, all washing water to be discharged to sedimentation basin before discharge. • No concrete mixing to be undertaken within 50m surface water. • Construction oil, fuel and chemical stores to be on impermeable bunded area of 110% volume, oil containing equipment to make use of drip trays to contain leaks, refueling to be undertaken on areas of hardstanding at least 50m from surface water. • Construction contractor to provide wastewater Construction Pollution risks containment, and sedimentation and biological treatment, if necessary. • Collect and segregate construction wastes including scrap metal, oils, and solid waste. • Store all wastes in designated, labelled area in an environmentally sound manner e.g. oils to be stored in sealed drums on drip trays, solid wastes to be stored in an enclosed bin. • Recover recyclable wastes that could be reused or sold to recyclers. • Prohibit burning of construction wastes. • Prohibit dumping of construction wastes into canals, rivers, agricultural fields etc.

Physical Dust, exhaust, • Rehabilitate any disturbed areas beyond footprint of pole Construction NEA / PMD construction: and noise foundation to at least original condition through contractors to

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Responsibility Environmental Project Activity Management / Mitigation Measures Planning and Supervision Issues Implementation and Monitoring manual labor emissions from revegetation using native species etc. implement approved [ADB will and mechanized construction • Use of auguring to limit the area to be disturbed for pole CEMP conducted construction equipment foundation. regular review Project missions as part • Undertake installation of poles during the dry season to Implementation of project minimize exposed areas subject to erosion by surface Consultants (or implementation] water runoff. PMD) to conduct • Controlled construction activities and maintenance of monitoring and machinery, timely scheduling of construction activities to routine inspections avoid nuisance to sensitive environments. • Sprinkling of water to avoid dust. • Limit engine idling to maximum 5 minutes • Impose speed limits on construction vehicles to minimize dust emission along areas where sensitive receptors are located (houses, schools, clinics, temples, etc.) • Burning of wastes generated by project-related activities to be strictly prohibited • Ensure all stationary emission sources are maintained in good working order in accordance with manufacturer instructions • Position any stationary emission sources (e.g. diesel generators, compressors, etc.) as far as practical from sensitive receptors (houses, schools, clinics, temples, etc.) • Clearance, laying and restoration works to be carried out simultaneously in small sections to reduce magnitude and intensity of adverse impact. • Construction equipment and vehicles to meet national emissions (e.g. tailpipe emission caps) and noise control standards. • Water sprays on access road and construction sites to be used for dust control as necessary i.e. 2-3 times per day during earthworks, during the dry season and during windy conditions.

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Responsibility Environmental Project Activity Management / Mitigation Measures Planning and Supervision Issues Implementation and Monitoring • Fuel, lubricants, and any other hazardous materials will be stored outside of protected areas and will be securely stored to prevent spills. • Areas close to water sources (surface water and groundwater wells, springs etc.) will be avoided. • Provisions for chemicals, oils and fuels to be stored in labelled, sealed containers kept in an impermeable bunded area of at least 110% of the capacity of oil in transformers and storage drums etc. Possible spills • Contractors to provide spill response kit in accordance with Storage of resulting in Material Safety Data Sheets for chemicals and hazardous chemicals and contamination of materials any hazardous soil, water, and • For transformers, Spill Prevention Control and materials air Countermeasures (SPCC) plan recommended by the United States Institute of Electrical and Electronics Engineer Inc. (IEEE) standard 908 needs to be followed. • Follow General EHS Guidelines for the use and storage of fuel, oil, and chemical including prevention and control of hazards associated with spill prevention, emergency response, clean up and contaminated soil remediation • Provide sufficient absorbant materials (e.g sorbants, dry sand, sand bags) on-site for soaking up fuel, oil or chemical leaks/spills • Import all materials from existing licensed sources • Records of all materials used, and sources, should be maintained Localized soil • Construction wastes to be managed in accordance with Material use and and water EHS guidelines on Construction and Demolition and construction pollution due to Waste Management and national standards and best waste inadequate practices. management management • All construction wastes including domestic wastes to be and control appropriate stored, all wastes removed off site to be documented using transfer notes and taken by licensed waste contractors who should reuse/recycle or dispose to suitably licensed landfill site.

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Responsibility Environmental Project Activity Management / Mitigation Measures Planning and Supervision Issues Implementation and Monitoring • At substation sites, soil, rock, and other spoils to be used in run-off control structures to maximum extent practical. • At Province 2 foundations pits excess concrete materials should not be left strewn in the area. • Boring outcast and spoils from burial of cables to be stockpiled adjacent to working area in a truck if there is sufficient space available to ensure zero soil on the ground; otherwise earth and spoils should be removed immediately and transported to designated storage area, then used to backfill excavated areas. • Construction works to be done in short segments which need to be backfilled, surrounding areas to be swept and the material to be collected in a vehicle and disposed immediately. This will ensure reduced dust pollution. • Waste lubricating oils to be disposed or recycled off-site by licensed service companies. • Temporarily used sites will be restored to at least their current condition following works. Department of National Park and • Provision of Insurance Scheme for Crop Loss, Wildlife NEA/PMD, Biodiversity Human Elephant Management of Water Holes in Forest Areas, Installation Conservation in Ministry of Protection and Conflict of Early Warning System, Use of Chilli Fencing or promote Protected Areas and Forest and Improvement crop farming that is unpalatable to elephant. Implementation Environment Consultants outside protected areas. Operation and Maintenance Phase • Maintain warning / advisory signs in good and visible condition • Regular visual and technical inspection (at least quarterly) NEA Transmission Routine of the condition of poles, lines and transformers to check NEA Pollution, health Operations units and operations and minimum vertical clearance and protection is maintained; and safety risks Distribution Service maintenance integrity of the poles and line is in good condition; electrical Center(s) safety warning signs and lighting arrestors in place; missing or corroded parts are immediately identified and replaced; that any leaking oil from transformers is

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Responsibility Environmental Project Activity Management / Mitigation Measures Planning and Supervision Issues Implementation and Monitoring immediately addressed; and, the status of any vegetation growth that may damage or threaten the integrity of the lines etc. • Safety related awareness raising in terms of electrocution and for effects of EMF. • Regularly inspect and maintain transformers to avoid oil leaks. • Maintain transformers and other noise generating equipment to ensure noise to be limited to 70 dB(A) at site boundary, 55 (day) and 45 (night) dB(A) at residential areas as 1 hour LAeq. • Keep photographic records and log of all inspections and actions taken in response. • Prohibit the use of herbicides, pesticides or burning to control any vegetation growth or to manage vegetation waste.

• Boundary walls and / or security fences around substations to prevent unauthorized access. NEA Transmission Injury or death to • Posting of warning signs. NEA Operations units and Electric shock the workers and • Routine inspection and maintenance of buried distribution Distribution Service public. lines and overhead aerial bundled cables. Center(s) • Potential for theft of distribution transformers for copper wires to be taken into account. • Substation transformers located within secure and impervious bundled areas with a storage capacity of at least 110% of the capacity of oil in transformers and NEA Transmission Contamination of associated reserve tanks. To be located at least 50 m Operations units and NEA Oil spillage land/nearby away from the nearest water source. Use of concrete Distribution Service water bodies paving, oil separators and oil containing areas will reduce Center(s) the risk of spillage. • Distribution transformers to be routinely inspected and maintained for oil spills. • Monitor emissions through inventory control and SF6 Fugitive NEA Transmission NEA accounting per the requirements set out in the IEE. Proper management emissions Operations units and handling and storage procedures to be implemented in

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Responsibility Environmental Project Activity Management / Mitigation Measures Planning and Supervision Issues Implementation and Monitoring accordance with equipment suppliers’ specifications and Distribution Service best practices. Regular inspection and maintenance of Center(s) equipment. Overgrown vegetation can lead to power • Use of goats for clearing of overgrown bushes and small outages trees (under strict supervision) around high voltage power especially in lines is known to be more effective as it is faster, cheaper Brush Cutting storms. Use of and more ecofriendly. On one hand these animals can NEA herbicides and reach difficult places that are challenging for people to chemicals for access. On the other they eliminate the need of fuel for clearances are cutting devices. harmful for environment. ADB = Asian Development Bank, BOD = biochemical oxygen demand, dB = decibel, EHS = Environment Health and Safety, , KVDA = Kathmandu Valley Development Authority, MoFALD = Ministry of Federal Affairs and Local Development, MoLRM = Ministry of Land Reform and Management, MoPIT = Ministry of Physical Infrastructure and Transport, MoUD =

Ministry of Urban Development, NEA = Nepal Electricity Authority, PCB= Polychlorinated Biphenyl, PMD = project management directorate, SF6 = Sulfur Hexafluoride.

D. Work Plan 171. Preliminary work plan for first three years of implementation is summarized in in Table 14. EMP related work will begin in mid of 2019. Procurement support will begin by early and design review activity will begin in second quarter of 2020. Any additional baseline and other survey and assessment work that may be required can be completed before construction commences.

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Table 8: Environmental Management Plan's Work Plan

2019 2020 2021 Activity Q Q Q Q Q Q Q Q Q Q Q4 Q2 1 2 3 4 1 2 3 1 3 4 Mitigation Measures NEA receives IEE approvals from Ministry of Energy, Water Resources and Irrigation X X PMD / PIC visual and technical inspections beginning with contractor mobilization (monthly or X X X X X X X X X X more frequently) Monitoring Quarterly monitoring by Implementation Consultants X X X X X X X X X X

E. Responsibilities for Mitigation, Monitoring, Reporting and Review 172. The responsibilities for different entities involved in EMP are illustrated in Figure 15 and discussed in more detail below.

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Figure 5: Roles and Responsibilities for Environmental Management Plan Implementation

NEA= Nepal Electricity Authority, QA/QC= Quality Assurance/Quality Control

NEA

173. NEA has primary responsibility for preparing this IEE and for implementing the EMP as per ADB and Nepali regulatory requirements. The IEE including EMP will be disclosed on NEA website. NEA will engage its project offices and/or other third-party services as necessary to complete the IEE and implement the EMP.44 PO will conduct routine inspections of construction activities, including visual and technical surveys of ROW, construction equipment staging areas, and construction camps.

174. In summary NEA are responsible for (not an exclusive list): (i) implementing the corrective action before any works at existing facilities (substations) commence, (ii) implementing the EMP during detailed design, pre-construction, construction, operation and maintenance phases and incorporating it into the contract documents for each package before contract awards, (iii) ensuring no works for project components other than those clearly specified in this IEE take place within the boundaries or buffer zones of existing or proposed (a) World Heritage Sites, (b) Ramsar sites, (c) National Parks, (d) Wildlife Reserves, and (e) Conservation Areas, and that any works related to project components in the Parsa National Park, Pokhara Ramsar

44 For purposes of discussion herein, it is assumed that PO will be engaged in this capacity.

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site, and the buffer zone of the Koshi Tappu Wildlife Reserve incorporate the mitigation measures specified in the IEE and EMP including site specific construction biodiversity management plans to be cleared by ADB before any works in these areas take place, (iv) operationalizing the grievance redress mechanism (GRM) for affected persons (construction workers and local community members) as detailed in the IEE and promptly addressing any environmental grievances received. Contact details for the GRM will be prominently displayed on notice boards at the project sites, (v) continuing to undertake meaningful consultation (community liaison) for environment safeguards during implementation, giving particular attention to consultations with women and vulnerable groups, (vi) locally disclosing the IEE and other environment safeguards documentation i.e. on NEA website and through notice informing of availability at the project site with hard copy to be made available by NEA at project site on request, (vii) updating the IEE and EMP as necessary if unanticipated impacts (including project scope or design changes) occur during implementation, and locally disclosing any updates to them, any such updates should also be submitted to ADB for clearance and disclosure on the ADB website; for any changes in scope or design related to works for project components within boundary or buffer of (a) World Heritage Sites, (b) National Parks, (c) Ramsar Sites, (d) Wildlife Reserves, and (d) Conservation Areas, or in Forest Areas updates must be cleared by ADB before any works commence, (viii) allocating adequate budget, institutional support, and staff resources to implement, supervise and monitor the EMP including sufficient number of suitably qualified and experienced environmental, health and safety officers to cover supervision of all the ongoing contract packages, (ix) preparing environment monitoring reports semi-annually up until the completion of construction, and annually during operation up until the project is closed, or for a longer period if this is specified in the project completion report, locally disclosing them, and submitting to ADB for disclosure on the ADB website, and, (x) developing and taking corrective action in case of any non-compliance during implementation including repair of any property damage and financial compensation (insurance) for any health and safety incidents.

Since the environment capacity of NEA can be strengthened, capacity development will be provided through the project implementation consultant. They will be tasked with providing formal training sessions and on-the-job training for the project management and environmental, health and safety officers of NEA, as well as the contractors’ management and environment, health and safety officers on understanding the SPS environment requirements, implementing the CAP and EMP, and preparing the environmental and social monitoring reports.

NEA / Project Management Directorate (PMD)

175. The PMD is responsible for the ongoing ADB-funded projects covering transmission system expansion and upgrade and renewable energy development. PMD Project Management Coordination Division (PMCD) includes officers responsible for environmental and social safeguards implementation.

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176. The PMD will ensure that bidding documents include the IEE, EMP, and any specific criteria for EHS policy and environmental certification criteria with the assistance of PMCD. Special conditions of contract may include penalties and incentives for environmental performance.

177. The PMD will prepare semi-annual environmental monitoring reports up until the completion of construction and annual reports during operation and submit to ADB. Annex 5 shows the format of environmental monitoring report. The reports will cover EMP implementation with attention to compliance and any needed corrective actions.

178. Additional public consultation will be conducted by PMD during construction. The PMD is in the process of updating its website in order to provide for public disclosure and public comments.

179. In summary PMD are responsible for (not an exclusive list): (i) Implement the EMP in respect of actions allocated to PMD during detailed design, pre-construction, construction, and operation. (ii) Ensure that the EMP including relevant mitigation measures needing to be incorporated during the construction stage by the contractor are included in the bidding and contract documents. (iii) Ensure the Contractors understand their responsibilities to implement the EMP and mitigate environmental impacts associated with detailed design, pre-construction, construction, and operational activities and provide training to their staff as required. (iv) Obtain necessary permits and/or clearance, as required, from forest department and other relevant government agencies, ensuring that all necessary regulatory clearances are obtained before commencing any civil work on the relevant sections. (v) Reviewing and approving Contractor sub-plans e.g. Construction EMP plus Traffic Management Plan, Construction Waste Management Plan, and Health and Safety Plan. (vi) Undertaking ongoing public consultation prior to and during works to meet ADB’s requirements for meaningful consultation being completed and implementing the GRM. (vii) Undertake quantitative monitoring as per the EMP. (viii) Supervising and monitoring that the EMP is being properly implemented by the contractor. (ix) Ensure that the contractors submit monthly environmental management reports (these reports will be included as part of the contractors’ monthly progress reports). (x) Prepare and submit the semi-annual environmental monitoring reports to NEA. (xi) In case unanticipated environmental impacts occur during the project implementation stage, including design changes, inform ADB, and, as required, update the IEE and EMP in consultation with relevant government agencies for clearance by ADB before any changes are implemented. (xii) In case of non-compliance, inform ADB, and prepare in consultation with relevant government agencies and implement as necessary a corrective action plan for clearance by ADB.

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Project Implementation Consultants

180. A team of consultants will be recruited for project implementation support. The team will include engineering, environmental, and social safeguards experts. The day-to-day activities will be coordinated by the NEA PO and PMD.45 Independent monitoring and evaluation will be done with the help of technical assistance provided by the project.

181. The consultants will take initial responsibility for the quantitative environmental monitoring, including procurement and delivery of monitoring equipment, and conducting routine emissions monitoring during construction and operations. The scope of work includes to support PMD in all their tasks (as above) and to conduct environmental monitoring and analyses (air and noise) per the EMP.

Construction Contractors

182. Construction contractors will be required to have a corporate EHS policy, and environmental management certifications such as ISO 14001 (or equivalent) and EHS certification such as OHSAS 18001 or equivalent.

183. The contractors will be delegated through the contract to undertake mitigation and monitoring actions as set out in the EMP and to assist with the GRM, but ultimate responsibility for implementation lies with NEA. Contractors will be delegated primary responsibility for implementation of the EMP, their approved CEMPs, and worker health and safety at construction sites, as well as at any camps. This includes provision of appropriate personal protective equipment (e.g., hard hats, safety boots with steel sole and top caps, gloves, eye protection, and hearing protection), provision of sanitation and welfare facilities, and controlled management and disposal of construction, domestic, and sanitary waste. They must designate full-time environment experts for implementing the EMP provisions. In addition to environment safeguards staff at NEA, the contractors will be required by the contract to (i) employ one dedicated environment, health and safety officer for each package in order to monitor and supervise their own work and provide quarterly environmental and social monitoring reports to NEA, and, (ii) nominate a community liaison officer to keep affected persons informed of works and be available to receive and deal with any grievances at the project site level. There are also requirements in the EMP for the Contractor to employ ecologists and archaeologists for undertaking works in sensitive locations.

184. The EMP is to be incorporated into bidding and contract documents and contractors are to ensure that its requirements are cascaded down to all sub-contractors undertaking works relating to the project regardless they are formally or informally employed.

185. In summary the contractor is responsible to (not an exhaustive list):

(i) Implement the EMP in respect of actions allocated to the Contractor during pre- construction and construction. (ii) Prepare sub-plans including Construction EMP plus Traffic Management Plan, Construction Waste Management Plan, and Health and Safety Plan as specified in the EMP for review and approval by NEA. (iii) Ensure that construction workers including all formal and informal subcontractors understand their responsibilities to implement the EMP and mitigate environmental impacts associated with their pre-construction and construction activities and with

45 Independent consultants may be recruited directly by ADB for project reviews on a periodic basis.

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support of PMD provide training to construction workers as required. (iv) Support the PMD in undertaking ongoing consultation and implementing the GRM. (v) Contribute to environmental monitoring as set out in the EMP during pre-construction and construction. (vi) Submit monthly environmental management reports to PMD (these reports will be included as part of the contractors’ monthly progress reports). It will identify the work undertaken over the reporting period and document the environmental measures including monitoring activities that have been carried out, problems encountered, and follow-up actions that were taken (or will be taken) to correct the problems. (vii) In case unanticipated environmental impacts occur during the project implementation stage, including design changes, inform PMD, and, as required, help update the IEE and EMP for clearance by ADB before any changes are implemented. (viii) In case of non-compliance, inform PMD, and help prepare and implement as necessary a corrective action plan for clearance by ADB. Asian Development Bank

186. ADB will (i) review the IEE and EMP before contracts are finalized and again before construction commences; (ii) review environmental monitoring reports; and (iii) officially disclose environmental safeguards documents on its website in accordance with the ADB Safeguard Policy Statement (2009). ADB will have oversight responsibility in according with Safeguard Policy Statement (2009) and will conduct regular review missions as part of overall project implementation:

(i) conduct periodic site visits during the project implementation to confirm compliance with the EMP; (ii) conduct supervision missions with detailed review by ADB’s safeguard specialists/officers or consultants in case of any significant impacts being anticipated; (iii) review the semi-annual monitoring reports submitted by NEA to ensure that adverse impacts and risks are mitigated as planned and agreed with ADB; (iv) work with NEA to rectify to the extent possible any failures to comply with their safeguard commitments, as covenanted in the loan agreement, and exercise remedies to re-establish compliance as appropriate; and (v) prepare a project completion report that assesses whether the objective and desired outcomes of the EMP has been achieved, taking into account the baseline conditions and monitoring results. For this purpose, NEA and their contractors will need to provide ADB with (i) access to all projects sites, (ii) all environment and social safeguards documentation requested, and (iii) a project site health and safety induction and adequate PPE in accordance with the IFC EHS Guidelines on Occupational Health and Safety (https://www.ifc.org/wps/wcm/connect/topics_ext_content/ifc_external_corporate_site/sustainabi lity-at-ifc/policies-standards/ehs-guidelines).

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F. Environmental Management Costs Estimates 187. Preliminary cost estimates for the EMP are shown in Table 12. These estimates cover the basic monitoring activities for a 3-year implementation period and are subject to revision. The EMP cost will be funded by the project.

Table 12: Preliminary Environmental Management Plan Cost Estimates

Activity Unit Unit Cost ($) Total ($) A. Routine Environmental Monitoring Contractor EHS Review by Implementation LS 11,000 11,000 consultants Air, Dust, Noise, Construction EHS --

Monitoring Equipment46 Implementation Consultants – International Professional for Monitoring [assumes 2 visits per 12 p-m 20,000 240,000 year, 2 p-m per year x 5 years] International Consultant due diligences – Travel (2 RT airfare/year @ $5000/RT; 60days per LS / year 20,000 100,000 diem/year @ $150/day; + miscellaneous costs) Implementation consultants – National Professionals 60 p-m 2 x 2,500 300,000 Remuneration for Monitoring and Visual Inspections (1 full-time equivalent, 5 years) National Consultants – travel and per diem (local travel @ 250 / month x 60 months; local per diem LS 61,200 61,200 1200 days total @ $50 / day plus miscellaneous costs) Subtotal 701,200 Contingencies LS 100,000 100,000 TOTAL 801,200 Contingency for surface restoration required due to LS 800,000 800,000 burial of distribution lines. Traffic Management and Inter departmental LS 300,000 300,000 Coordination and awareness Skill Development Cost 27,614 Bird Markers Cost 1,066 51 54,366 Biodiversity Protection and Improvement LS 10,000 10,000 Total 2,004,180

% of total project cost 0.66 %

B. Capacity Development 188. To help develop NEA capacity Table 13 shows the training activities to be undertaken.

Table 13: Trainings

Item Attendees Delivered By Total Cost (US$) EMP International 10,000 implementation NEA/PMD Consultant for detailed

46 Can be used from PTDEEP equipment

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Item Attendees Delivered By Total Cost (US$) design including biodiversity and archaeology components EMP International 10,000 implementation Consultant for pre- construction and NEA/PMD and Contractor construction management team including biodiversity and archaeology components Contingency @ 10% contingency 2,000 Total 22,000

C. Provision for Initial Environmental Examination/Environmental Management Plan Update 189. If additional work is required to update the IEE and EMP, it will be conducted through the NEA PMD with assistance from project implementation consultants.

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IX. CONCLUSION AND RECOMMENDATIONS

190. The environmental impacts of the infrastructure components proposed in the project have been assessed and described in the previous sections of this document. Potential negative impacts were identified in relation to design, location, construction and operation of infrastructure. Mitigation measures have been developed to address identified negative impacts. According to this assessment, the proposed project is unlikely to cause any significant adverse environmental impacts if the EMP is followed.

191. The project will be located in three provinces namely Province Number 2, Bagmati Province (Kathmandu Valley and Chitwan District) and Gandaki Province (Kaski District) of Nepal. Upgrading of the existing 132 kV transmission lines from the Pathlaiya substation to the Parwanipur substation by replacing the conductors partially falls within the boundaries of the Parsa National Park, but NEA have assured works will be confined to the existing right of way from Pathlaiya substation in respect of the couple of towers already located within it. Undergrounding of existing feeders in the Kaski district of Gandaki Province falls within the Lake Cluster of the Pokhara Valley Ramsar site but works will be confined to the existing road. One project component is located in the buffer zone of the Koshi Tappu Wildlife Reserve but does not encroach into the site. No other project components will fall within the boundaries or buffer zones of existing or proposed protected areas including World Heritage Sites, Ramsar sites, National Parks, Wildlife Reserves, or Conservation Areas.

10. Potential adverse environmental impacts and risks will primarily occur during the construction phase due to site clearance and earth works, transportation and use of materials and equipment, presence of construction workers, and, noise generating construction activities. These impacts will be mostly temporary and generally reversible, affecting only communities in the immediate locality of the project sites. However, potential exposure to electromagnetic field (EMF) and other pollution, health and safety risks associated with transmission and distribution systems will be a permanent, albeit localized, during the operation phase. Potential adverse environmental impacts and risks will be minimized by maintaining adequate distance of electrical equipment from properties, ensuring EMF levels are within international good practice International Commission on Non-Ionizing Radiation Protection (ICNIRP) reference levels, maintaining right of ways in accordance with the Electricity Rule, prohibiting the use of PCBs, bunding transformers and oil storage areas, installing safety signage, and electrical safety community awareness raising activities. In the vicinity of Koshi Tappu Wildlife Reserve, bird collision risk will be an additional risk, to be mitigated through installation of bird markers. The environmental benefits will be secondary in nature with improved reliability of and access to power resulting in reduced consumption of non-renewable fuels. Since a significant portion of Nepal’s power grid is supplied by Hydroelectric power, environmental benefits of clean energy can be justified.

11. Mitigation for the potential adverse environmental impacts of the project during the detailed design and pre-construction, construction and operation phases is included in the EMP. Compliance by NEA and their contractors to its requirements during project implementation will need to be ensured through safeguards monitoring and supervision. For the project components within the boundaries or buffer zones of protected areas, a detailed construction environmental management plan will be cleared by NEA, the relevant protected area management team, and ADB before any site clearance or construction takes place. With this, the project is not expected to result in significant environmental impacts. In addition, as the project involves existing facilities (substations) environmental audits have been conducted and a time bound, budgeted corrective

122 action plan (CAP) developed for implementation by NEA before contractors are granted access to the substations.

192. Public consultation during PTDEEP was conducted for the SASEC PTDSSP upgrading substations as well as the Distribution Centers in Kathmandu Valley (Dharmasthali and Rupshetar areas) more consultation was done in 2019 (between June to October). Additional consultations will be conducted going forward. The IEE is publicly disclosed in accordance with ADB and the government requirements. A grievance redress mechanism will be established by NEA (under PTDEEP a GRM is being established to address complaints and interests of local communities).

193. All construction and operation activities will be monitored and reported by the NEA in accordance with the EMP. Provided the EMP is properly implemented there will be no significant impacts arising from the project. This IEE including EMP are considered sufficient to meet the environmental assessment requirements of ADB and Government of Nepal. However, in case of any change in project components and/or alignments during detailed design, this IEE and EMP will be updated.

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ANNEXES

Annex 1 - Rapid Environmental Assessment (REA) Checklist

Instructions:

(i) The project team completes this checklist to support the environmental classification of a project. It is to be attached to the environmental categorization form and submitted to Safeguards Division (SDSS) for endorsement by Director, SDSS and for approval by the Chief Compliance Officer.

(ii) This checklist focuses on environmental issues and concerns. To ensure that social dimensions are adequately considered, refer also to ADB's (a) checklists on involuntary resettlement and Indigenous Peoples; (b) poverty reduction handbook; (c) staff guide to consultation and participation; and (d) gender checklists.

(iii) Answer the questions assuming the “without mitigation” case. The purpose is to identify potential impacts. Use the “remarks” section to discuss any anticipated mitigation measures.

Country/Project Title: Nepal (50059-003): South Asia Subregional Economic Cooperation Power Transmission and Distribution System Strengthening Project

Sector Division: SAEN

Screening Questions Yes No Remarks A. Project Siting Is the Project Area adjacent to or within any of the following Environmentally Sensitive Areas?

▪ Cultural Heritage Site X Baneshwar and Balaju Distribution Centers will provide power to Bouddha, Pashupatinath and Swayambhunath areas. Similarly, Bhaktapur and Lalitpur Distribution Centers will provide power to Bhaktapur Durbar Square and Patan Durbar Square areas, respectively. All the above sites are UNESCO Cultural World Heritage Sites.

However, work within these areas are avoided and project facilities will not encroach in any of the culturally sensitive and archeologically important areas with additional measures included for works within 250m of World Heritage Sites. ▪ Protected Area X Parsa National Park (existing ROW) and Ramsar Site of Phewa Lake (existing road) such that no significant impacts anticipated.

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Screening Questions Yes No Remarks ▪ Wetland X Pokhara Feeder falls covering the Ramsar Site of Phewa Lake. However, the project activities will be confined along the black-topped city roads in densely build-up areas. The work will not incur any adverse environmental impact on the Lake (Ramsar Site). ▪ Mangrove X ▪ Estuarine X ▪ Buffer Zone of Protected Area X Buffer zone of the Koshi Tappu Wildlife Reserve. ▪ Special Area for Protecting Biodiversity X See above. B. Potential Environmental Impacts Will the Project Cause… ▪ encroachment on historical/cultural areas, X The project facilities will be located in disfiguration of landscape and increased Kathmandu Valley, which is an ancient waste generation? city with numerous temples and stupas. Likewise, Province 2 area includes some important religious site of Janaki Temple, Dhanusadham, Gadhimai Temple and Simraungad historical sites in Bara districts. However, the project facilities will avoid these areas and will not be within any of these sites with additional measures included for works within 250m of World Heritage Sites. Chance find procedures as per the government Act and ADB requirements will be applied to the project. ▪ encroachment on precious ecosystem (e.g. X Although in protected biodiversity areas, sensitive or protected areas)? project components are not located in any of the ecologically sensitive habitats of these areas e.g. existing RoW and road. However, forest areas may be impacted. ▪ alteration of surface water hydrology of X The project components will not directly waterways crossed by roads and resulting in affect surface water hydrology but increased sediment in streams affected by measures to protect water quality in EMP. increased soil erosion at the construction site?

▪ damage to sensitive coastal/marine habitats X Not applicable. by construction of submarine cables?

▪ deterioration of surface water quality due to X This is the impact that generally occurs in silt runoff, sanitary wastes from worker-based all construction work. The impact is camps and chemicals used in construction? expected to be minimal and can be readily managed by undertaking simple mitigation measures.

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Screening Questions Yes No Remarks ▪ increased local air pollution due to rock X Cutting and filling may generate some crushing, cutting and filling? dust, which will be short in duration, localized and will be of negligible significance. The impact can be readily managed by undertaking simple mitigation measures. ▪ risks and vulnerabilities related to X This is the type of impact that generally occupational health and safety due to occurs in all construction work. The physical, chemical, biological, and impact can be readily managed by radiological hazards during project undertaking simple mitigation measures. construction and operation? ▪ chemical pollution resulting from chemical X clearing of vegetation for construction site?

▪ noise and vibration due to blasting and other X Blasting will not be required. some noise civil works? may be generated while carrying out work or movement of vehicles, which will be short in duration, localized and will be of negligible significance. The impact can be readily managed by undertaking simple mitigation measures. ▪ dislocation or involuntary resettlement of X Any temporary impact will be people? compensated by following resettlement framework. ▪ disproportionate impacts on the poor, women X No indigenous people or vulnerable and children, Indigenous Peoples or other groups involved. Affected people will be vulnerable groups? compensated as per RP. ▪ social conflicts relating to inconveniences in X Traffic Management Plan to be prepared living conditions where construction interferes for construction works. with pre-existing roads

▪ hazardous driving conditions where X Although not hazardous, but minimal construction interferes with pre-existing impact could be on traffic movement. roads? Such impact could be minimized by undertaking traffic management plan in coordination with local traffic police and adopting traffic safety measures such as barricading trench or work areas. ▪ creation of temporary breeding habitats for X Good housekeeping required. vectors of disease such as mosquitoes and rodents?

▪ dislocation and compulsory resettlement of X people living in right-of-way of the power transmission lines?

▪ environmental disturbances associated with X the maintenance of lines (e.g. routine control of vegetative height under the lines)? ▪ facilitation of access to protected areas in X Existing ROW and existing road are used. case corridors traverse protected areas?

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Screening Questions Yes No Remarks ▪ disturbances (e.g. noise and chemical X pollutants) if herbicides are used to control vegetative height? ▪ large population influx during project X Project is not expected to cause large construction and operation that cause population influx. Local hiring will be increased burden on social infrastructure and given priority. services (such as water supply and sanitation systems)?

▪ social conflicts if workers from other regions X Local hiring will be given priority. Outside or countries are hired? workers will reside within camps.

▪ poor sanitation and solid waste disposal in X The labor camps will adopt sanitary construction camps and work sites, and practices, properly collect and manage possible transmission of communicable solid waste, control vector proliferation, diseases from workers to local populations? and conduct regular health check-up of the workers. ▪ risks to community safety associated with X Proper health and safety practices shall maintenance of lines and related facilities? be adopted through information dissemination, using signages and safety measures. ▪ community health hazards due to X electromagnetic fields, land subsidence, lowered groundwater table, and salinization?

▪ risks to community health and safety due to X Project will not involve the use of the transport, storage, and use and/or explosives or other chemicals during disposal of materials such as explosives, fuel construction and operation. and other chemicals during construction and operation? ▪ community safety risks due to both accidental X These are general impacts those could and natural hazards, especially where the occur in all construction work. Required structural elements or components of the occupational health and safety measures project (e.g., high voltage wires, and will be adopted by preparing safeguard transmission towers and lines) are accessible and safety plan. to members of the affected community or where their failure could result in injury to the community throughout project construction, operation and decommissioning?

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A Checklist for Preliminary Climate Risk Screening

Country/Project Title: Nepal (50059-003): South Asia Subregional Economic Cooperation Power Transmission and Distribution System Strengthening Project Sector: Energy Subsector: Power Transmission and Distribution Division/Department: SAEN/SARD

Screening Questions Score Remarks47 Location Is siting and/or routing of the project (or its components) likely to be 1 and Design affected by climate conditions including extreme weather-related of project events such as floods, droughts, storms, landslides? Would the project design (e.g. the clearance for bridges) need to 0 consider any hydro-meteorological parameters (e.g., sea-level, peak river flow, reliable water level, peak wind speed etc.)? Materials Would weather, current and likely future climate conditions (e.g. 0 and prevailing humidity level, temperature contrast between hot Maintenanc summer days and cold winter days, exposure to wind and humidity e hydro-meteorological parameters likely affect the selection of project inputs over the life of project outputs (e.g. construction material)? Would weather, current and likely future climate conditions, and 1 related extreme events likely affect the maintenance (scheduling and cost) of project output(s)? Performanc Would weather/climate conditions, and related extreme events 0 e of project likely affect the performance (e.g. annual power production) of outputs project output(s) (e.g. hydro-power generation facilities) throughout their design life time?

Options for answers and corresponding score are provided below:

Response Score Not Likely 0 Likely 1 Very Likely 2

Responses when added that provide a score of 0 will be considered low risk project. If adding all responses will result to a score of 1-4 and that no score of 2 was given to any single response, the project will be assigned a medium risk category. A total score of 5 or more (which include providing a score of 1 in all responses) or a 2 in any single response will be categorized as high-risk project.

Result of Initial Screening (Low, Medium, High): Medium Other Comments: ______

Prepared by:

47 If possible, provide details on the sensitivity of project components to climate conditions, such as how climate parameters are considered in design standards for infrastructure components, how changes in key climate parameters and sea level might affect the siting/routing of project, the selection of construction material and/or scheduling, performances and/or the maintenance cost/scheduling of project outputs.

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Annex 2 - Field Photographs and Maps

Photo 1: 11kV Line near Bhandarkhal Forest in the Photo 2: World Heritage Inscription at the South West Proposed Cores Zone of Pashupati Monument WHS Corner of the Boundary Wall of Bhandakhal Forest of Pashupati Monument Core Zone

Photo 3: 11kV Line at Pashupati Monument WHS Core Photo 4: 11kV Line crossing into Core Zone at Gaurighat Area crossing River Bagmati for Pashupati Monument WHS

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Photo 5: 11kV Line crossing Pasang Lamu Highway into Photo 6: 11kV Line in near front Gate of Boudha Forest of Protected Area Monument WHS Sanugate

Photo 7: 11kV Line along the border at buffer zone of Photo 8: 11kV Line South of Uma Kunda into Core SNNP Zone of Pashupati Monument WHS

Photo 9: Distribution Line in SNNP Photo 10: Distribution Line in SNNP at Mulkharka

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Photo 11: 11kV line running north at Swyambhunath Photo12: Between Dallu and Anandakutibihar Line Monument Zone World Heritage Site Proposed Core running along the border of Core Zone Zone

Photo 13: Distribution Line in SNNP Photo 14: Distribution Line in SNNP at Mulkharka

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Photo 15: 11kV Line at Jarsingpauwa Photo 16: Unsafe Hooking Practices in SNNP, SASEPTDSSP project can reduce this and increase

safety including fires related

Photo 17: Jorpati DC Line over Forest from Salinaadi to Photo 18: Line at SNNP Mulkharka Jarsingpauwa

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Annex 3 - Record of Consultation and Information Disclosure for PTDSSP

A. Consultation and Transect Walk at Baneshwor DCS July 7, 2019: Ward Kathmandu Metropolitan City Ward No. 32 Concern:

1. Critical Areas not to be left out in the ward. 2. Quality work needs to be done as recently constructed road in the ward caused immediate potholes and accidents. 3. Networking and coordination with all faculties needs to be done. 4. Restoration of construction sites without adversely affecting other public utility structures such as sewer lines, drinking pipelines etc. 5. Telephone, other wirings also needs to be adjusted in this. 6. Positive thing of undergrounding is that this will reduce the ugliness of wires in the area.

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Kathmandu Metropolitan City Ward No. 34

Concerns

1. Some areas in the ward are having problems with leakage of electricity. 2. Safety Concerns of electricity leakage. 3. Areas in Alok Nagar, Siri Nagar distribution poles were added but no wires were installed in the area by Kathmandu Valley Improvement Project’s work. Such works should not be done by this project (Incomplete Work). 4. Distribution Power lines in the area need to be insulated. 5. Electricity leakage of connectors in the areas which has caused fire. Such issues should be addressed. 6. A service line for other cable needs to be added while undergrounding. 7. Issues of safety and accidents when other utility lines dig for service maintenance. A good coordination and awareness for operation stage safety needs to be taken into account. For instance, in Min Bhawan area digging of sewer lines is facing problems because there is an existing underground power line there, so we are not able to add and maintain such utility services. Therefore, such problems that can arise during operation phase of the project needs to be addressed properly. 8. Undergrounding will beautify the area in our ward, this is a good thing. 9. Less excavation work over the road will be good for the area. 10. Street lighting issues related problems will arise if all poles are removed after undergrounding is done. This factor also needs to be taken into account by the project.

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July 9, 2019

Kathmandu Metropolitan City Ward No. 8

Concerns

1. Areas from Jayabageshwori, Pashupati, Mirgasthali and Gujeshwori face issues of monkeys and power cuts. Monkeys die because of electrification, therefore if these areas can be undergrounded it will be good for tourism (these areas are sites for pilgrimage as well as sites for religious processions). It is good to have these areas undergrounded. During the religious processions the tall traditional chariots that are pulled through the roads encounter hurdles because of power lines and require disconnecting them every year for each procession. Therefore, getting them underground will increase safety and be very supportive in carrying out traditional religious events successfully. 2. Other areas include Nabari Tole, Bhandarhal. At Bhandarkhal areas storm wind causes the trees to fall and cause damage to the distribution lines and accidents. 3. At Pashupati area (World Heritage Site) recently at cremation site open electricity conductor recently caused a death of one individual mourner and Pashupati Area Development Trust had to financially compensate the person. Moreover, at Pashupati area monkeys of the temple frequently die because of electrocution. Therefore, having the conductors undergrounded in this area will not only make it aesthetically pleasing but also reduce mortality of monkeys. 4. Harijan Tole locality face problems because road is very narrow and lots of wires are dangling there. If this area can be undergrounded it will be very productive in terms of improving safety. Getting Harijan Tole and Gujeshwori into the project will be very helpful in solving safety problems. 5. Trishul Jatra (Religious/Cultural Procession) where child is kept at a height and power lines are a big safety issue while carrying out the procession. Therefore, with implementation of this project and undergrounding it will be a big relief for local people of the area. 6. Recently 21 monkeys died because of electrocution in this area at Kailash. 7. 2 people died recently because of electrocution as the lines are very close to terrace of houses and can be touched. Therefore, getting it underground will save people lives. 8. What will be of Telephone and other utility wires after undergrounding? It will need to be managed properly. 9. Frequent fire at existing wires occurs because of power lines and communication line being today. Leakage of electric current in poles also causes issue. 10. We will provide full support during the construction period of the project which includes traffic diversion as this is a very good project for our area.

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July 9, 2019

Kathmandu Metropolitan City Ward No. 10

Concerns

1. This project is very good to have power lines undergrounded will beautify the areas. 2. Recently, fire caused damage to furniture shop (NPR 6 crore worth of loss) because of electricity associated fire at Buddha Marg of Buddhanagar area. Therefore, upgrading the power line, insulating them and most importantly undergrounding them is very welcome. We will totally help in whatever way we can for this project. We are absolutely positive about this initiation by NEA and ADB. 3. We have lots of unnecessary wires in this ward therefore undergrounding work beautify the ugliness caused by web of cables in our streets. 4. Recent fire at Sankhamul at a shop was because of lack of awareness on safety as the liquefied petroleum gas was kept close to electric heater. Such safety related awareness needs to be provided to common public. 5. There are altogether 3 slum areas (Devi Nagar-44 household, Binayak nagar-35 households, Sankhamool- 106 households). 6. Areas in Bijuli Bazaar, and Devinagar experiences seasonal flooding during monsoon. 7. There are distribution poles that are slanting and about to fall hence posing safety problems. Addressing this issue will be very helpful 8. At Thapagaun area open power lines run very close to road thus causing risk of accidents.

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B. Consultation at Balaju DCS

July 19, 2019

Kathmandu Metropolitan City Ward No. 16

Concerns 1. Fire at mid night caused by electricity recently at Balaju Chowk by on electric poles. 2. The upgradation of distribution lines will have a very positive effect on safety issues related to accident risk caused by low hanging open power lines. 3. Lines are close to houses thus having them underground will have a positive effect. 4. Excessive wires in electricity poles (including telephone, television cable wires, internet service providers’ wire) causing the poles to slant at 45 degrees. These are causing risk of accidents. 5. Power Line at Government School (Tarun Madhyamik Vidhyalaya/Tarun Secondary School) very close to the building causing risk to students at Balaju. 6. Goratar wires running very close to houses. 7. Ring Road wires are dangling on roads is posing risk of accidents.

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July 28, 2019

Tarun Secondary School, Under Balaju DCS, Kathmandu Metropolitan City Ward number 16.

The school has 1,700 students and is located in next to Balaju Bypass and a 11kV Line crosses immediately over its boundary where the school is currently running its canteen. Based on discussion with the school principal and teacher in the school earlier a person in the process of construction received electric shock and was injured. The school is currently facing space problems and hopes if the distribution line is managed to improve the safety of the school. Furthermore, the school administration feels that the line currently crossing over the settlement if possible is rerouted along the road will assist the school to use the areas above canteen to increase the number of floors so that students are provided enough space by adding class rooms and halls. They expressed hope for any such possibilities. The pictures of the consultation and line at and surrounding the school are below:

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C. Transect at Province 2

Site Observation at Parsa District at June 4th 2019

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Site Visit to Mahottari District on June 5th 2019

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Site Visit to Janakpur District on June 5th 2019

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D. Transect at Bharatpur DCS

July 4, 2019 - Bharatpur Metropolitan City, Ward 10

Issues:

1. Substation is beyond the bypass road and there is Ramnagar Forest Area beyond that but load center is on this side (i.e opposite side of the substation). A substation is being built at Aaptari at northern part of Bharatpur where undergrounding work can be done to bring line from there then demand for electricity load can be addressed adequately. 2. Mainly in Bazaar Area undergrounding is necessary because people do not give us permission to add lines and transformers. The line is on both side of the road although voltage is very low in that area people are not willing to place transformers in front of their property. 3. In Madi Area 8km of 33kV line has an existing underground work to Madi Municipality Area with 40% electrification crossing park area and personnel brush cutting has even been warranted. However, the current proposed work will not enter into that area. 4. The current capacity building for NEA technical personnel who will be involved in operation and maintenance work need to be given adequate training in accurately identifying the fault in the conductor (with minimal error) as there are issues of lack of such human resources. 5. Other are is Manjari Community Forest beyond Aptari where frequently tripping of line occurs due to overgrowth of trees in the forest. This occurs during monsoon season, if insulated cables or coated cables can be used there the tripping problem can be addressed to a good extent. 6. At airport landing boundary the distribution line causes disturbance to airplanes, as per complaints by Aviation team. It will be good is this area is also undergrounded.

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E. Consultation at Saptari District

July 5, 2019

Discussions were held with local leaders and local political party members of the area.

Kanchanrup Municipality, Ward 8, Kanchanpur

Issues

1. We are supportive of such project. The existing lines are done in this region are in some areas are still old and needs upgrades. The poles and lines are placed at greater distances than standard practice of (40m) and wires are hanging low. Hence pose accidental risks. 2. Main targeted marginalized groups of people do not have electricity meters as they are required to have land ownership certificate which is a prerequisite for so. 3. The electricity supply is unreliable and people working with small business as packaging, local pottery, bangles had to stop. 4. Some areas outside this municipality such as Gobargada do not have electricity as this area do not have road access from Nepal and people have to use boats or use land from India. 5. Lots of economically marginalized people are cultivating land on landlord’s farmland hence they are not entitled to meter. Hence several people do not have access to electricity meters. 6. Households with remittance have increased capacity of consumption of electricity and hence demands have increased but billing system is a major problem as bills exceed to high charges and when complained computer software system related problems are provided as reason for it by NEA. 7. Potential demand for electricity that can increase here is for irrigation pumps, cold storage. Therefore, reliable and quality electricity will lead to good beneficial impacts to farmers. 8. An agriculture electricity meters requires a minimum 3,380 m2 of land but several economically marginalized people have small land hence they are not benefiting from this. The electricity consumption cost for such meters is also almost half of normal domestic consumption meters. If such problems are addressed, then it will be beneficial. 9. Local Laha Bangles worn by women in Terai and locally made Cookery utensils were taken by women in Kanchanrup areas of Saptari Districts. However, because of lack of reliable electricity supply the business have come under pressure to close. 10. During the months of November, December and January several birds such as Australian Ducks, and other migratory birds come to areas close to Koshi Wildlife Reserve area. Other wildlife frequenting these areas includes Asian Elephant and Wild Water Buffalo. The area with frequent visitation of wildlife where the consultation and focused group discussion is arranged is Kanchanrup Municipality Ward Number 5. This place is also at the boundary of Ramsar Site. This area falls at the border of Important Bird Area, encompassing 21,000 ha of Koshi River, Ramsar Site, Barrage and surrounding areas.

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July 5, 2019

Kanchanrup Municipality, Ward 5, Pipra Purba

This site is in Buffer Zone of Koshi Tappu Wildlife Reserve and close to the boundary of Ramsar Site as well as within the Important Bird Area and inhabited by Sada Marginalized Indigenous People.

Issues

1. People use electricity for TV, Fan, Light but for just that many device usages, the monthly bill is too high nearly NPR 5,000. People who use just fan and light get NPR 2,000 bill this is too high for us to pay. Lots of men have gone to India for Working. They are not aware of time for payment of electricity bill and incur to fines hence instead of paying just NPR 100 they are to pay 10 times more money without even using electric motor. (Since they are illiterate, they cannot read about the discounts and time of payment of bills written in the receipt) 2. They do not have enough land or do not have any land and work for landlords. 3. They are totally dependent on Park areas for firewood and fish (illegally) and hence are not into vegetable farming and also do not use other cleaner means of cooking that cost money. The local elected Representative Ward Chair have come with several sewing and vegetable cultivation trainings but hardly anyone attends as everyone is busy in collecting firewood and fishes from Park area. 4. They do not want to use electricity for cooking as they are scared of getting electrocuted and burned. Other than this since they are already worrying about paying huge electricity bills, they potentially may not get into electrical cooking as they illegally get fuel wood free of cost from park. 5. Throughout the year Asian Elephant comes and destroys crops, Wild Water Buffalo (Arna) also destroys crops. Several wetland birds, bats visit to this area. However, no wildlife has died in existing electric wires.

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July 5, 2019

Kanchanrup Municipality Office, Ward 8

Discussions were done with Mayor, Ward Chief and Other educated people of the Municipality

1. Transformer capacity is not of adequate capacity and hence issues of blackout frequently occur. This area located in Terai region of Nepal experiences maximum summer temperature exceeding 40C and hence without fans living under a roof is unbearably uncomfortable during 3-4 months in a year. Although this municipality has the highest level of electrification in the districts with highest amount of electricity revenue generation. Despite of this we have several problems and hope NEA listens to our plea and take our concerns to solve our problems. 2. This area needs awareness in use of power saving devices such as CFL and LED light bulbs to replace the traditional high-power consuming bulbs. 3. Road expansion work does not go along with the shifting of electricity poles and poses risks of accidents. We are taking the financial burden of shifting the electricity poles, buying the vehicles and asking only technical help from NEA. We need to shift approximately 15,000 poles and each pole cost us approximately NPR 8,000 (USD 71). We at municipality office are working with the objective of serving local population while NEA works with the objective of doing business. Despite of this they are not cooperating on shifting the poles to the newly widened road. Several roads are being broadened therefore NEA needs to take responsibilities in shifting the poles timely instead to shifting their financial burden to other government agencies. NEA seriously needs to think of coordinating with other government agencies as in our municipality this is extremely lacking. 4. Even people without land get meters on providing NPR 1,000 (USD 9) of deposit. However, the distribution meters are not fairly given to the landless people some settlements are not provided such facility even of making such monetary deposits. 5. There are several areas in this municipality where there are very low hanging wires that pose serious safety risks and several incidents of accidents have happened. These low hanging wires are as a result of inadequate number of poles being installed to the distance of wires to the settlements. The substandard method of electric lines extension happened in Kanchanrup Municipality (since 25 years back) because people then were only concerned of getting connected to the national grid and hence lines were haphazardly extended even through agricultural land (those lines are still being used). 6. Awareness of safety related to electricity needs to be given to public. 7. A serious issue of double billing of electricity bills has occurred in recent past and we have even publicly protested surrounding the NEA DCS for our voices to be heard. This problem was raised by 5,000 household and still 1,500 are wating for their issue to be resolved. Some of our protest team was informed by NEA Kanchanpur DCS team that the problem occurred due to glitches in billing software and these few people who raised their voice were exempted from the extra expenses. However, others who are not educated or have not raised their voices had to pay extra amount. This is very unfair and if any wrongdoing can be investigated by NEA Head Office or other government agencies need to be done and common people should be provided justice. Even a retired NEA staff Mr. Sambhu Pokharel (who is considered as a very honest man in this area) revealed that this own electricity bills readings showed double billing. Some people come to Municipality office even complaining that for 20 units of electricity consumed they write 2,020 units with evidence of earlier months reading bills. The electricity bill statement is not reliable. We

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have kept evidence of statements taken in gaps of 1 or 2 weeks these readings keep changing, we even warned of taking legal help of suing in court then after the warning the bill amount was decreased. I truly want NEA to do serious internal investigations of get the truth out and punish if anybody is found guilty. 8. Marginalized people are located in the outskirts of city areas on government land or others land. There in spite of access of electricity in these areas illegal hooking is done, and this frequently causes the fuse in transformers to blow resulting in localized blackouts. This is creating nuisance to even people who have metered connection and timely pay their electricity bills. These settlements do not have proper or connection to electricity mainly because of financial problems. 9. The transformers capacity in Marginalized group settlements where they are densely populated in of lower capacity. These lower capacity transformers cannot even support a small cottage scale mills and hence results in frequent blackouts. 10. The settlements of marginalized people are always separate and in every such settlement only two-phase electricity supply is there. Hence, they experience low quality power. 11. Instead of doing capacity building program on Sewing or Driving, if Agriculture is focused through leased land to the landless families and also use of electricity for irrigation will be more effective. This is because this area is very fertile for agriculture and every landless families are engaged in agriculture (we are looking at farmers who are marginalized and hence capacity building needs to be targeted with this point of view). Use of cold storage can help give locals good price for their agriculture produce especially vegetable. 12. Gender discrimination wise in Kanchanrup Municipality people do not educate the girl child to higher levels because they think they will run away with boys and the family will have to face shame in public. Other issue is by educating a girl child to a higher education they will have to find a more qualified groom and the dowry cost for a higher qualification is high which the bride’s family cannot meet. Since the marginalized group does not have well educated members in their family hence, they do not get chances to get capacity building training which required higher education qualification. There is also lack of qualified teachers in school. For instance, there are several Lower Secondary Schools and a Higher Secondary School in neighboring municipality of Province 2 where the Lower Secondary Teacher is teaching to Higher Secondary Schools. This type of schools will not produce well-qualified students. Hence education institution needs to be strengthened to improving in sector of capacity building. 13. Awareness program and capacity building program will not be successful since people are busy with their daily livelihood activities and earnings (people will attend such trainings is financial incentives are given who attend such trainings or else they will not come) hence the Mayor of Kanchanrup Municipality is devising plans of using cultural musical programs and drama to convey messages and spread awareness. As everybody in village will be interested in watching once such programs start in the village. People will gather in large numbers hence it will be effective and meaningful technique. 14. Training on quality education, health services, off season vegetable cultivation and mushroom cultivation are probable effective means to get capacity building intervention by the project in this municipality.

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NEA Kanchanrup DCS, Ward 8

Discussion was done with Engineers at DCS.

Issues

1. Problems of frequent tripping of electricity supply occurs because of trees 2. Inadequate human resource strength in the DCS has prevented NEA to timely fix power related issues and address locals’ power related concerns. 3. People are not aware of the date of payment of electricity bills and rebates they can receive or fines they can incur if they cross the rebate time period. There is a huge rush always at the end of the month to pay electricity bill when actually different zone of the municipality has different days of the month when the meter readings are done and bills need to be payed to get a financial rebate. Serious awareness is lacking among the common people. 4. Although there is possibility of including clauses in tender documents to include women in NEA distribution construction and rehabilitation work. Based on local contractor work required here includes climbing poles, which requires services at any time of the day when which is difficult for women to work here since their current dress in the villages does not allow them to climb on poles and they have family problems to provide services they may require one to go to site at the middle of the night. However, slowly once education level increases and they modernize it may be possible.

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Community Rural Electrification Entity (CREE), Khadak Municipality Ward-6

Discussion was done with Community Representatives.

Issues

1. The Municipality has 15 years old connections that are in need of upgrade. 2. NEA has provided a TOD (Time of Day) meter that is installed in the electric pole from which the community takes it to each household and farmland as domestic or agricultural consumer connections with sub meters (300 in total). However, the billing amount generated by the TOD meters is more than the individual meters installed by community. This month itself the TOD bills was NPR 5,000 (USD 44.25) more than the collection done by the community. 3. Community faces problems on maintenance because they do not have technical manpower to handle these issues and NEA charges price for providing technical support which the community members cannot afford. 4. The current electricity supply is highly unreliable as even with small gust of wind storm the power cuts happen and requires maintenance. 5. Accidents and deaths have occurred on existing lines and are unsafe. Making changes and upgrading them will be of a great value. 6. The power lines do not support high capacity electric motors and hence electricity distribution system in the Municipality is a hindrance to irrigation and farming. 7. The area is frequently visited by elephant and the Community have also distributed Improved Cooking Stoves to public. This can be of help in reducing firewood consumption and improve indoor air quality, hence be helpful to women in the villages.

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Khadak Municipality Office, Ward-6

Discussion was done with Community Representatives.

Issues 1. Marginalized group women work as daily wage labourers and hence training can be provided to them for capacity building 2. The electricity at present is unreliable and of low quality 3. Accidents keep occurring because of low quality electricity distribution infrastructure and hence are in need of upgradation. For instance, electricity distribution related fires have occurred twice close to the east-west highway in las one year. 4. Asian elephant frequently visits this area and cause crop raiding and destroy houses, important birds such as Vultures and Eagles also visit the area.

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F. Consultation at Siraha District

Lahan DCS, Lahan Municipality, Ward-7

Discussion was done with Engineer at DCS.

Issues:

1. NEA has 333 transformers and 103 private transformers. There is a 32/33 kV Substation and we need a new distribution substation for Lahan. 2. 69% is electrified. Dhangadimai Municipality ward number 13, 14 and 16 are not or partially electrified (although under Lahan DCS Dhangadimai Municipality is not included in PTDSSP). Of which Ward number 14 is un-electrified, where there a lot of settlement of ethnic group of dominantly Magar community. This is mainly because of lack of adequate funding. At ward 14 recently on local demand a fair-weather road (26 to 30 feet wide 40 km long) has been constructed to this Chure Region recently and electricity poles also have been placed. 3. At Lahan Municipality, Ward Number 16 a place name Bardhama is not electrified. Its electrification is being planned by NEA. 4. This DCS inside city of Lahan Municipality is a very old NEA building and this year we were flooded by monsoon rains. 5. Most of electricity leakage occurs in southern part of the Municipality while it is less in the northern areas. The earlier leakage of electricity was 46% which was reduced to 27%. We are still working towards controlling hooking and penalize the wrongdoer. A targeted awareness against illegal hooking was done mainly Yadav and Muslim dominant settlements where it is more rampant. In mixed communities it is less prevalent. 6. Higher bills amount in some areas are because they have been recording fewer units then existing each month. But to control this leakage we have started changing the meter reader every three months hence the sudden increase in billing amount is seen in these households. 7. Electric Poles in some areas were broken during flooding in monsoon this caused reduced in consumption as factories had to close down. 8. There are issues of people not allowing placement of transformers in front or in their land. 9. Mushahar group of communities do not have metered connection to electricity in this municipality. They are poor and do not have land also. NEA has plans to get them connections this year. 10. To community electrification program (CREE) practice is we provide services to TOD meters and 11kV line but not to the 0.4 kV lines. That needs to be managed by local community members. Electrical equipment is expensive and hence community members are not able to purchase them in case of requirement for replacement. Likewise, technicians are also expensive they are not able to hire. The TOD means Time of Day, so the power rates are different for different time of day usage. 11. The quality of power is also being studied using voltage drop analysis and conductor size is being done to aid in ensuring quality power supply. 12. At present for electricity distribution related work no EIA is being done for Chure Conservation Area as project infrastructure is placed on existing roads. 13. There are issues related to safety as the poles are slanting. Standard poles are very expensive and if this standard is maintained this safety issue can be solved. Adequate sag of conductors also needs to be maintained.

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Dhangadimai Municipality, Thatiya Village, Ward-12 (In Province 2 but not selected for PTDSSP site)

Discussion was Female Groups.

Issues

1. Lack of good voltage with infrequent supply. 2. Transformers fuse frequently blow and maintainence team do not come in time for repair work. 3. Electricity connection in the village since 21 years 4. This settlement includes Yadav, Chettri and Bhramin communities (mixed communities) 5. Wild Animals as Wild Boar, Elephant cause crop depredation. 6. Flood in Charre River causes 11kV line to frequently topple causing disruption in power supply. 7. Dhangadimai Municipality, Thatiya Village, Ward-12 (In Province 2 but not selected for PTDSSP site)

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Dhangadimai Municipality, Bagar Tole Village, Ward-12 (In Province 2 but not selected for PTDSSP site)

Discussion was done with Marginalized Group.

Issues

1. This village is settled in Government Land next to River Charre (Non perennial Siwalik River) where electricity connection has come since 4 years. 2. Mostly castes of Sarki and Bishwokarma reside here who work as labourers and are landless. There are 23 households. 3. The use electricity for lighting and Television and a common government electricity water motor (230 feet deep) which they illegally hook to power lines. 4. Asian Elephant comes here and have cased destruction to crop field and some houses. They come here during the months of January to May every year. 5. They use firewood (for which they do not have to pay any money) for cooking.

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Dhangadimai Municipality Office, (In Province 2 but not selected for PTDSSP site)

Discussion was done with Mayor.

Issues

1. Ward number 14 occupies 34% of the municipality with land with 750 household but no access to national grid there. The area is in Chure Conservation Area and an earthen (26 to 30 feet wide 40 km long) fair weather road has been constructed recently and electric poles have been placed. 2. Electrification of Agricultural land for irrigation is most needed. 3. For Agriculture meters that use pumps transformers are placed with monthly demand charge of NPR 2,200 (USD 19.5) associated with it which the Farmers cannot pay (in off season even 2000 units of electricity is not used hence this problem needs to be addressed). This is because if this is not removed, they will not be able to use the subsidized electricity for irrigation. Two such meters are not operational due to this financial issue. I have been lobbying for this several time, but no response has come for solution. 4. Development of online payment systems are being considered in the municipality. 5. Here roads are narrow and line pass above house and schools this is not safe. Also, distribution lines should run on both sides of the wide roads (which are nonexistent) so that they do not pose electrocution hazard for vehicles because of low hanging household connection wires that run across the road. 6. Approximately 75 poles need to be shifted that are placed haphazardly and pose safety risks to public. Risky placements of poles are a big nuisance to municipal office and these needs to be taken care of. The municipality office on its own cost is providing 8 transformers to support quality electricity to public.

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Dhangadimai Municipality, (In Province 2 but not selected for PTDSSP site)

Discussion was done with NGO member who are working Province 2 Dhanusha, Mahottari and Siraha Districts with Marginalized Groups.

Issues 1. Possible capacity building in this area is Tapari Making (leaf bowl made of Sal Tree leaf) using machine, Irrigation pumps and Garments (School Dress) can be of good opportunity to intervene in this area for improving local peoples livelihood based on the experience of the NGO workers. 2. The electricity supply is irregular and hooking of lines if prevalent here. 3. Mainly during monsoon season between June to August electricity related accidents occur here. 4. Female Groups by the time they reach 18 years are married hence finding qualified girls for training is difficult. 5. Female groups are shy and environment where family support to go outside and work does not exist. 6. Leakage of electricity is prevalent, and most are done by the landless, poor people as they cannot get connections because they require land ownership certificate to get connection which they do not have. These household are also prone to electricity related accidents and fire as they illegally connected insecurely. 7. The most marginalized group includes Mushahar community who are 17,000 in Siraha District. 8. These community people are uneducated, and they do not have birth certificate and hence they cannot get citizenship and they cannot get any Facilities provided by nation. 9. The girls of these marginalized groups get married earlier as once they get higher education and the groom for the girl also is educated and the dowry is high so the family members of the bride who are financially weak prefer to marry girls in their earlier age. Therefore, finding girls of higher age who are educated from this family is difficult in this area.

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Siraha Munciipality, DCS

Discussion was done with NEA Engineer.

Issues

1. The current line length is very long from existing substation has caused low quality electricity here. 2. Local people have already shifted to efficient electricity lighting bulbs as CFL and LED, hence if cost of electricity is competitive people will shift to electric cooking. 3. People in marketplace want good quality voltage but they will not allow placement of transformers in front of their property. There are cases where locals have even sued in court against NEA to not place transformers in front of their property. 4. Increased Industries and Industrial Area in the Region and potential Demand will increase 5. No Major Environmental Issues have occurred. 6. Low Voltage for instance in the DCS itself instead of standard 220 V we receive 165 V and cannot run some electronic equipment therefore a new substation and upgradation of the line is necessary as we are dependent on substation that is a long distance away (10 km) at Bhishnupur. 7. Substation land for 132 kV instead for just 33/11 kV will be good in Siraha Municipality. 8. Irrigation related potential is high for power consumption once reliable standard quality of power is ensured.

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Siraha Munciipality Office,

Discussion was done with Mayor, Ward Chief and Local Leaders.

Issues

1. Having selection of substation site along the Hulaki Highway (which is under construction) will be helpful as the existing power situation is poor in the municipality and lots of industries are being planned here. 2. Potential for Electricity consumption here is Agriculture electrification for irrigation and other agriculture sectors. 3. In some areas flood waters have caused the poles to fall (33 kV). 4. Human resources are 50% of required manpower in the DCS hence fixing technical problems takes time causing locals to face problems because of frequent power cuts. 5. Leakage in this area was 49% which has been reduced to 22% in 2 years’ time by active involvement of NEA.

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Siraha Munciipality, Laxmaniya, Ward-18

Discussion was done with Local People, Ward Chief and Local Leaders.

Issues 1. Electricity connection for 25 years now in the area but low voltage and frequent power cuts. Even maintenance team does not fix the issues quickly. 2. Electricity usage among the locals include lighting, cooking with rice cooker and motors for irrigation. 3. The irrigation pumps cannot operate since the distance of meters to pump is long and voltage in sot enough hence causing problems to farmers. Productivity in our field has not been able to use to its fullest because of lack of irrigation with deep boring. 4. The pumps are dug to a depth of only 65 to 80 feet event in that depth voltage is not enough. The ground water here is contaminated at this depth with arsenic, iron and water irrigated using this water causes productivity of farmlands to drop (because these toxins form layer on surface of soil causing the roots of the crops rot). A deep boring with good operating voltage in necessary to improve crop productivity of our fields. One state boring system close to our area got blocked after earthquake which need cleaning, we had put forward requests to ground water irrigation board of government, but we have not received any response. 5. We are lobbying for deep boring that will require adequate capacity transformers and reliable electricity with quality voltage to run this irrigation boring system. The high crop productivity of our land here can be used. 6. Ward Office has conducted sewing and tailoring training with sewing machine to each trainee.

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G. Consultation at Sarlahi District

Barhathawa Municipality, Sarlahi, Ward-7

Consulted with local NGO, Farmers, Small Business Owners in the Area

Issues

1. The electric power supply here is infrequent and with fluctuating voltage 16,000 households are affected. 2. Distribution Line is only towards one side of the road and hence tapping connection line across the 45 feet wide road by maintaining adequate height clearance is difficult and also risky for lorries and buses that travel with loads on carrier over their roof. 3. There are Dairy (particularly chilling containers) and Sugar Molasses Processing Cottage Industry Owners who suffer extra costs of using Diesel Generator (250 to 300 liters of diesel per month by mill and dairy, for molasses processing industry 100 to 150 lts for months annually) and have to reduce their profit margins because of unreliable supply of electricity. Tailors who use electronic sewing machines are also adversely affected by frequent power cuts. 4. This municipality is invested with poisonous snakes (such as Crate and Cobra) and every year 5 to 7 people die of snake bites. At night when power cuts happen, we are not able to see and hence risk of being bitten by poisonous snakes increases. If reliable power

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supply happens with this project, then possibilities of such accidents will decrease. Moreover, the health facilities require keeping the ant venom vile for snake bites 24 hours in freezing temperatures. Because of power cuts this is not possible and hence the health institutions are severely suffering. 5. The marginalized group of people residing in this municipality includes Mushahar, Dom, Paswan, Malahar (traditional fishing communities) and Halkot. 6. According to a businessman every 1 or 2 months his electric motors (snack packaging machines) needs repair because of the fluctuating voltage. This has caused him loss in time, money and clients. 7. Landless people living illegally close to forest in Government Land are not allowed access to electric meters. 8. Between two months in a year 100 to 150 lts/month of diesel consumption by diesel water pumps since electric pumps do not operate because of lack of good voltage. 9. Drinking Water Supply also suffers in debt of NPR 2 mil (USD 17,700) for using diesel to pump water and currently unable to run. 10. Currently we are pumping water at only 20 ft of depth (using hand pump) for drinking but the water quality is not good, and people are suffering from skin disease. Adequate drinking water supply is needed in this municipality. 11. Hospital cannot provide service because of reliable electricity supply for instruments such as freezers and incubators cannot be run reliably.

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H. Transect at Bara District

Illegal Hooking, Religious and Historical Areas

Issues

1. The District is in serious need to upgradation and rehabilitation of distribution line as illegal hooking is rampant. 2. The current substation at Simraungad is not in good condition and also needs upgradation. 3. There are several religious and culturally important sites that are in need of promotion. 4. This district recently faced sever storm this year and caused electric poles to fall and distribution system to be disrupted.

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I. Consultation and Transect Walk at Lakeside Tourist Area of Pokhara Metropolitan City

Issues

1. The Undergrounding works will improve the aesthetics of the area and hence help in tourism 2. After undergrounding the necessity of cutting trees because of risk of tripping (which has been done earlier) or wires will be eliminated hence with trees in the area will look beautiful and help the tourism industry. 3. The existing huge bunch of wires in front of rooftop restaurants have been lately discouraging tourists from visiting such restaurants and having adverse effects on business. Hence with undergrounding it will aid in improving the business. 4. Areas in of lakeside at Khapaudi there is a plan for constructing cable car hence power requirements need to be taken into account. 5. Some areas near Khapaudi the existing 11kV lines are crossing over cultivated land, if undergrounding works will be done along the road the private land will be free of such infrastructure. 6. If undergrounding works are done not only in lakeside but also other areas it will be more beneficial. 7. Areas for undergrounding if done between Sahid Chowk to Khapaudi and Zero km to Hallan Chowk it could be above 8km but could be very helpful as the whole of lakeside sector will be covered; hence this factor needs to be taken into consideration.

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Photo: Jumble of Cable, Telephone and Internet Wires reducing aesthetics of the touristic area of Lakeside

Photo: Wires Mesh that Discourage Tourist from rooftop restaurants and adversely affect business

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Photo: Wires Mesh that Discourage Tourist from rooftop restaurants and adversely affect business as observed from inside a restaurant

Photo: 11kV Line passing through cultivated land with undergrounding along the road the land will be free

Photo: Distribution Lines running through the trees which needs cutting, undergrounding will eliminate this requirement

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Photo: Interactions with NEA Team at Provincial Office of Pokhara

Photo: Consultation with Provincial Chief of NEA

Photo: Clustered Transformers which will be adequately placed in accordance to requirements after implementation of this project

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Photo: Aesthetics of Pokhara for which Tourists Visit and undergrounding will positively support this

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I. Consultation and Observations at Khimti I Substation Site

Photo: Open Field is the site for 400kV while the transformers work is the 220kV Site of the Substation

Photo: Household at 400kV Site that has yet to move following internal dispute in the family

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Photo: Safety Practices Observed at the 220kV Site

Photo: Transformers of Existing 220kV Works rainwater filled in under construction oil filled transformers pit

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Photo: CCTV Surveillance for Safety of the existing 220kV Site

J. Consultation and Observations at Janakpur Parikrama Sections of Janaki Temple (now excluded from project scope)

Consultation works with Janaki Temple Priest, NEA, DCS Engineer, Site Observer and Temple Management was done concerning undergrounding of distribution line around the temple premises and particularly in areas where the yearly religious processions take place where large number of prilgrims both from Nepal and India visit. Major suggestions provided were:

1. The undergrounding works will increase safety of the people 2. It will improve the aesthetic value of the area 3. During the annual religious processions large number of people gather between 1000000 to 1500000 whose risk of having accident due to electrocution always exist and therefore the undergrounding works will be a great relief for NEA management team in Janakpur. 4. NEA teams in Janakpur have requested a quicker beginning of the project will ensure the safety of the area. 5. Construction works needs to be taken avoiding the Mangshir months when the religious procession takes place. 6. The Temple management team has requested to do a separate consultation where the utility management team of telecommunications, drinking water supply, sewer system and roads are also present.

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Photo: Distribution Line at 12 Bigha Ground where large number of Pilgrims visit every year

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Photo: 11kV Line opposite of 12 Bigha running through a house with no proper clearance

Photo: Distribution Line in front of Janaki Temple Gate

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Photo: A mosque behind the Janaki Temple across the road

Photo: Consultation between NEA's Engineer and Janaki Temple Management Priest about PTDSSP

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Map: Transect at Janakpur

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Figure: Attendance Sheet for Consultation at Janakpur

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Annex 4 - Air and Water Quality Standards

Table A4.1: National Ambient Air Quality Standards (micrograms per cubic meter)

Ambient Concentration Parameters Averaging Time Test Methods (maximum) Total Suspended Annual - Particulates (SPM) 24-hoursa 230 High Volume Sampling Annualb - PM10 24-hoursa 120 Low Volume Sampling Diffusive Sampling based on weekly Annual 50 Sulphur Dioxide averages 24-hoursc 70 To be determined before 2005 Diffusive Sampling based on weekly Annual 40 Nitrogen Dioxide averages 24-hoursc 80 To be determined before 2005 8 hoursb 10,000 To be determined before 2005 Carbon Monoxide 15 minutes 100,000 Indicative Samplersd Atomic Absorption Spectrometry, Annual 0.5 Lead analysis of PM10 samplesc 24-hours - Diffusive Sampling based on weekly Annual 20e Benzene averages 24-hours - Notes: a 24 hourly values shall be met 95% of the time in a year. 18 days per calendar year the standard may be exceeded but not on two consecutive days b If representativeness can be proven, yearly averages can be calculated from PM10 samples from selected weekdays from each month of the year. c 24 hourly standards for NO2 and SO2 and 8 hours standard for CO are not to be controlled before MOPE has recommended appropriate test methodologies. This will be done before 2005. d Control by spot sampling at roadside locations: Minimum one sample per week taken over 15 minutes during peak traffic hours, i.e in the period 8am-10am or 3pm-6pm on a workday. This test method will be re-evaluated by 2005. e To be re-evaluated by 2005

Table A4.2: Generic Standard: Tolerance Limit for Industrial (Wastewater) Effluents Discharged into Inland Surface Waters and Public Sewers

Industrial waste Wastewater into inland Industrial Effluents SN Parameters into Inland Surface Surface Waters from into Public Sewers* Waters CWTP* 1 TSS, mg/l 30-200 50 600 Shall pass 850- Shall pass 850-micron Sieve 2 Particle size of TSS micron Sieve 3 pH Value 5.5 to 9.0 5.5 to 9.0 5.5 to 9.0 o 1 4 Temperature C <40 <40 45 5 TDS, mg/L, max 2100 6 Colour and Odour BOD for 5 days at 20 30-100 50 400 7 degree C, mg/L Max Oils and grease, mg/L, 10 10 50 8 Max, Max Phenolic compounds, m1 1 10 9 mg/ Cyanides (as CN), mg/L, 0.2 0.2 2 10 Max

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Industrial waste Wastewater into inland Industrial Effluents SN Parameters into Inland Surface Surface Waters from into Public Sewers* Waters CWTP* Sulphides (as S), mg/L, 2 2 2 11 Max Sulphates (SO4), mg/L, 500 Max Radioactive materials: a. Alpha emitters, c/ml, 10−7 10−7 12 Max

b. Beta emitters, c/ml, 10−8 10−8 Max 13 Insecticides Absent Absent Absent Total residual chlorine, 1 1 1000 as chlorides 14 mg/L Fluorides (as F), mg/L, 2 2 10 15 Max Arsenic (as AS), mg/L, 0.2 0.2 1 16 Max Cadmium (as, Cd), mg/L, 2 2 2 17 Max Hexavalent chromium 0.1 0.1 2 18 (as Cr), mg/L, Max Copper (as Cu), mg/L, 3 3 3 19 Max 20 Lead (as Pb), mg/L, Max 0.1 0.1 0.1 Mercury (as Hg), mg/L, 0.01 0.01 0.01 21 Max 22 Nickel (as Ni), mg/L, Max 3 3 3 Selenium (as Se), mg/L, 0.05 0.05 0.05 23 Max 24 Zinc (as Zn), mg/L, Max 5 5 5 25 Sodium, %, max Ammonical nitrogen, 50 50 50 26 mg/L, Max 27 COD, mg/L, Max 250 250 250 28 Silver, mg/L, Max 0.1 0.1 0.1 29 Mineral Oils, mg/L, Max 10 Inhibition of nitrification <50% 30 test at 200ml/l Source: MOEN, 2010 Notes: CWTP= Combined Waste Water Treatment Plant; Under enforcement since BS 2058/1/17 (30 April 2001); *Under enforcement since BS 2060/3/9 (23 June 2003); 1 Shall not exceed 40oC in any section within 15 m downstream from the effluent outlet Table A4.3: Nepal Noise Standards (dB)

Area Day Night Remarks a Industrial 75 70 Passenger car at 65 miles per hour at 25 feet registers 77 dB Commercial 65 55 50 dB(A) is typical of conversation in a restaurant or office Residential 55 50 50 dB(A) is typical of conversation at home, large electrical transformers at 100 feet Note a: http://www.industrialnoisecontrol.com/comparative-noise-examples.htm

Note: since Nepal noise standards are less stringent for industrial and residential areas than the equivalent WHO noise guidelines; the applicable performance standard for industrial and residential properties will be the WHO noise guidelines. Measurements to be taken as 1 hour LAeq day and night.

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Annex 5 - Outline of an Environmental Monitoring Report

The borrower is required to prepare and submit to ADB semiannual monitoring reports that describe compliance with environment safeguards loan covenants, PAM, contract, progress with implementation of the project EMP, quantitative monitoring results, environment, health and safety incidents and responses, grievances and responses, potential or actual non- compliance issues, and corrective actions. A sample Table of Contents that can be adapted as necessary is provided below.

TABLE OF CONTENTS

Part I – Introduction • Project description, including organogram of relationships with Contractors, owner, lender, etc. • Design, pre-construction, construction, and operational activities and project progress during previous 6 months • Confirm if any changes in design and construction (e.g. alignment, construction methods) during previous 6 months • Confirm if any changes in project organization and Environmental, Health and Safety management team during previous 6 months

Part II – Loan Covenants • Status of compliance with environment safeguard loan covenants and further action to ensure ongoing compliance; if there is partial or no compliance recommendations for corrective action are required. Clause Covenant Status of compliance to date Comment/further (full, partial, none, ongoing) action required including timeline

Part III – PAM • Status of compliance with environment safeguard/monitoring section of PAM and further action to ensure ongoing compliance; if there is partial or no compliance recommendations for corrective action are required. Para Details Status of compliance to date Comment/further action required (full, partial, none, ongoing) including timeline

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Part IV – Contract • Status of compliance with environment safeguard section of Contracts and further action to ensure ongoing compliance; if there is partial or no compliance recommendations for corrective action are required. Clause Details Status of compliance to date Comment/further action required (full, partial, none, ongoing) including timeline

Part V – EMP and CAP • Site inspections and audits completed – summarize the number and type of site visits, persons involved, and checklists/reporting format used (sample of checklists and reports to be included as an appendix) • Status of compliance with EMP and CAP measures and further action to ensure ongoing compliance; if there is partial or no compliance recommendations for corrective action are required. • Copies of clearances, CEMP, construction method statements, and other documentation produced in accordance with EMP and CAP during the previous 6 months should be included as an appendix. • Copies of training records related to EMP and CAP during the previous 6 months should be included as an appendix. Item Measure Status of compliance to date Comment/further action required (full, partial, none, ongoing) including timeline

Part VI - Environmental Monitoring • Environmental monitoring results – summarize the previous six months quantitative monitoring activities and data obtained in accordance with the EMP and provide explanations of any instances where performance standards were exceeded along with details of responses taken to rectify the exceedance once identified. Typically this section will include the results of: − Noise and vibration surveys − Water quality surveys − Air quality surveys − Flora and fauna surveys − Health and safety incident records

• Corrective actions are required to ensure any exceedances will be prevented in the future.

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• Graphs can be used in this section to show trends; however, large tables of data or multiple graphs should be attached as an appendix. Calibration and QA certifications of monitoring equipment and laboratories analyzing samples should be included as an appendix.

Part VII – Consultation and Grievances • Consultation – report on any ongoing consultation undertaken, and main issues raised by consultees; detailed consultation records should be included as an appendix.

Date Format/Venue Participants Main Issues Raised (Occupation, M/F)

• Grievances - list any complaints received, however minor, and responses taken to them; detailed grievance records and response reports should be included as an appendix.

Part VIII - Environmental Management • Report on any unanticipated impacts and updates to IEE/EMP that were required during the previous 6 months, status of delivery of documents, required amendments, consultation and disclosure undertaken etc. • Environment, health and safety incidents – summarize details of the responses taken to incidents that arose; detailed response reports should be included as an appendix. • Non-compliance notices – summarize details on the number of notices given out, the issues covered, and status of compliance with them. • Corrective action plans – summarize non-compliances identified and if non-compliance, report on timeliness for the preparation and completion of corrective action plan if not already included in above.

Annexes • Sample checklists and reports • Clearances and documentation • Training records • Photographs • Detailed monitoring data • Calibration and QA certificates • Consultation records • Grievance records • Environment, health and safety reports

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Annex 6 - Environmental Audit for Existing Facilities

1. INTRODUCTION

1.1 Objectives of the Environmental Compliance Audit

1. The implementation of the South Asia Subregional Economic Cooperation Power Transmission and Distribution System Strengthening Project (PTDSSP) could have both negative and positive impacts on the surrounding environment, depending on environmental sensitivities and the design of responsive mitigation measures. Potential environmental impacts include physical, ecological, and socio-economic impacts. The environmental assessment for the Project was carried out to prevent and reduce adverse impacts to an acceptable level, and to enhance the positive impacts linked with the implementation of the project.

2. A rapid environmental assessment checklist for the project was prepared to determine potential adverse environmental and social impacts during project design and planning, construction, and the operation and maintenance phases of the project. The PTDSSP is categorized as an Environment B category project, based on the rapid environmental assessment and the ADB’s Safeguard Policy Statement (2009). For Category B project, the environmental impacts are expected to be less adverse than Category A projects. An Initial Environmental Examination (IEE) is required to address the anticipated impacts and to suggest appropriate mitigation measures. An IEE report was prepared for the project based on the table of contents provided in Appendix 1 of the ADB’s Safeguard Policy Statement (2009). 3. As per ADB Operations Manual, Section F1/OP para 53, for projects involving facilities and/or business activities that already exist or are under construction before ADB's involvement, ADB requires the borrower/client to conduct an environment compliance audit to determine their safeguard compliance status. The audit by the borrower/client confirms that on- site environmental assessments carried out to identify past or present safeguards concerns related to the impacts on the environment.

4. Where noncompliance is identified, ADB and the borrower/client agree on a Corrective Action Plan (CAP), implementation schedule, and sufficient funds to bring the project into compliance with the safeguard policy requirements. If an upgrade or expansion of facilities is not foreseen, the audit report (including the CAP, if any) constitutes the EIA/IEE including EMP. For a project involving an upgrade or expansion of existing facilities that have potential impacts on the environment, the requirements for environmental assessment and planning apply in addition to the audit.

5. The project must comply with the ADB’s Safeguard Policy Statement (2009) and Operational Manual F1 (2013). Moreover, the Project must also comply with the applicable national laws and regulations on environment, health and safety (H&S).

6. The Environment Audit has been conducted with the aim to assess the Project’s compliance with-

(i) ADB Operations Manual, Section F1/OP (2013), para 53; (ii) National (Nepal) laws and regulations on environment, health and safety (H&S); and

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(iii) Environmental safeguards according ADB’s Safeguard Policy Statement (2009) and other relevant standards and guidelines of the ADB.

1.2 The Purpose of the Environmental Audit Assessment

7. The purpose of the Environmental Audit is:

(i) to identify present inadequacies in environmental management, and occupational health and safety issues in the existing facilities, i.e. substations; (ii) to determine the need for remedial actions necessary to bring the subject facilities into compliance with ADB safeguard policies; and (iii) to recommend actions to be taken to improve and strengthen NEA’s environmental, health, and safety management.

1.2.1 Scope of Work

8. The environmental audit assessment focused on three existing substations namely 220/132 kV Khimti 1 substation, 220/132 kV Barhabise substation, and 220/132 kV Lapshiphedi substation. These substations are located on NEA land in the Bagmati Province of Nepal. It is proposed to upgrade these three substations to 400 kV level under the proposed PTDSSP, hence as per ADB’s Safeguard Policy Statement (2009) these qualify as existing facilities requiring an environmental audit.

9. Two substations (Barhabis and Lapsiphedi 220/132 kV) are financed under ongoing ADB loan and so should already be being implemented in accordance with ADB’s Safeguard Policy Statement (2009) requirements. All safeguards documents have been prepared as part of that project approval. NEA has completed land acquisition for these substations and currently ownership of these sites is with NEA.

1.2.2 Method and Approach

10. The audit was conducted based on desk-based review of available documents followed by site visits. All available relevant in-house documents were reviewed, including the following:

i. Project design reports, ii. Environmental assessment report and EMPs, iii. Technical specifications and EHS clause from the Contract Documents, and iv. IFC’s General and Power Transmission and Distribution EHS Guidelines. 1.2.3 Site Observation and Interview

11. The audit took place in the months of September 2019 and January 2020. The audit was undertaken by independent environmental expert engaged by ADB under TA budget. Three substation sites were visited by environmental expert together with NEA officials. During the visit, visual inspection was conducted and the critical issues using a prepared checklist were cross checked. The checklist identifies issues as per the following criteria as deduced from the guidelines mentioned above. Interviews were also held with contractor staff as well as NEA staff and also local communities in the area. The general conditions of three substations is discussed below.

• Khimti Substation: The substation is under-construction on land allocated for the 220 kV substation. Currently construction work is ongoing with construction camps setup

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and construction workers using compensated houses in the territory of the boundary of substation site. One house was observed to be occupied in spite of receiving compensation and on interview it was known that they are planning to move out but had an internal family dispute between father and son and hence were still remaining there (Figure 3). GIS substation construction work is ongoing with transformers installed having fire barrier between them. Environmental Health and Safety precautions were observed to be taken. Although on site information on PCB usage were not confirmed by civil engineers present at site for construction work for the 220/132 kV GIS building as well as by contractor for the work, NEA engineer confirmed that PCB’s are banned and are not used anywhere. The 400 kV GIS substation land is immediately above the present 220/132 kV substations site where the upgradation for present work site will done. The photo below is taken from the 400 kV land towards the 220/132 kV GIS substation construction work site.

Figure 6: Ongoing Construction Work Observed on 220/132kV Substation from 400kV SS site

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Figure 7: Construction work for Khimti 220/132kV GIS Building

• Barhabise Substation: The substation is a new substation site with compensation to the land owners and household structures provided by NEA. The substation is being constructed under ongoing ADB loan for PTDEEP and the land acquisition process has been completed under ongoing loan. Currently land clearing and levelling work has been completed and a slope towards the northern end of the substation site is being stabilized using retention wall. Figure of the levelling work is below.

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Figure 8: Levelling work at Barhabise Substation site

• Lapsiphedi Substation: The substation is a new substation site. The substation is being constructed under ongoing ADB loan for PTDEEP and the land acquisition process has been completed under ongoing loan. The compensation to the land owners and household structures provided by NEA. Currently no construction work has been started as can be observed in the picture below.

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Figure 9: Lapsiphedi Substation Site under yellow circle

2. FINDINGS OF THE ENVIRONMENT AUDIT

12. The audit was based on criteria stipulated below:

• General environmental management • Waste management practices • Hazardous material management • Occupational health and safety management, and • Community health and safety management.

13. These criteria were translated into a checklist (Table 1) which was used to identify areas of strength in each substation, and areas that need corrective actions to meet the minimum required standard. Selected pictures of the substations audited are attached in Annex 1.

2.1 New Khimti 220/132 kV Substation

14. Environment audit findings:

• The substation is currently under construction. Civil works activities are ongoing. At the time of the site visit transformer along with the fire wall have been installed. • The contractor has recently installed four oil filled transformers (33.33 MVA) but not yet charged. None of these transformers use PCB, as also confirmed by NEA. The substation is PCB free.

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• The substation’s switch yard has not yet been constructed. Civil works for GIS building is also ongoing. Adequate safety warning signs (for civil works of the building) are installed to prevent the general public from being exposed to any risk of accidents and electrocution. However, the outer perimeter of the substation does not have a secure wall. There are signs in the outer perimeter indicating the risks of electrocution. • At substation construction site, the scrap metals were placed at the northern corner of the substation. • The transformer oil drums (stacked one over the other) are stored in the open over mostly single wooden planks, which pose risk of accidental leakage to the ground. • Safety kits (PPE, fire extinguisher), first aid room are available in the substation site.

15. The substation needs improvements in the following areas:

• The transformers are placed on an elevated level on concrete platforms. There are transformer oil collection pits, where pumping is used to prevent oil spill to contaminate soil. Handling of the transformer oil during storage needs to be improved with over ground or underground storage tanks. Prevention of leaks through protective maintenance, coupled with prevention of spillage through retrofitting proper impermeable bund to 110% capacity above the highest known flood level. • The outer perimeter of the substation does not have a secure wall. Moreover, there are no signs in the outer perimeter indicating the risks of electrocution. A proper wall should be erected along the outer perimeter and entrance of the substation, with legible signs warning the public of the risk of electrocution. CCTV surveillance system is installed for security of the construction works in the premises of the substation site.

2.2 Barhabise 220/132 kV substation

16. The site was undergoing levelling of land and soil instability was observed towards the northern edge of the substation boundary. According to NEA experts no further work has been done yet. The retention building work is ongoing at present in the substation site. As an ADB project, any necessary corrective action would be undertaken as part of the ongoing supervision and monitoring by NEA and their consultants ADB loan for PTDEEP.

17. It should be confirmed prior to the contractor for PTDSSP being given access that the site is in compliance and there are no outstanding exceedance of performance standards or corrective actions.

2.3 Lapsiphedi 220/132 kV substation

18. The land acquisition for this site has been completed. The civil works activities not yet started at this site. As an ADB project, any necessary corrective action would be undertaken as part of the ongoing supervision and monitoring by NEA and their consultants of ADB loan for PTDEEP. It should be confirmed prior to the contractor for PTDSSP being given access that the site is in compliance and there are no outstanding exceedance of performance standards or corrective actions.

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Table 1: Filled in Environmental Audit Checklists

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3. CORRECTIVE ACTION PLAN (CAP)

19. As the all the three substations are at initial stage of construction, the key concern is the pollution, occupational health and safety risks associated with construction and installation work. During operation waste management, including handling, storage and disposal, will be the principal EHS concerns at these substations.

20. Table 2 present the corrective action plan for all substations. The corrective action plan should be completed, and a detailed report submitted to ADB confirming the completion of the included actions, for clearance before any project works commence

Table 2. Corrective Action Plan for all Substations

S. Issue Corrective Action By whom By when Budget No (source) 1a Improvement of • Develop and cascade New Khimti Immediately to SS hazardous materials (oils) to all SS for 220/132kV be completed construction and waste management implementation a Substation by NEA before and system/procedures at standardized Project any project operation project level. hazardous materials EHS Team works budget. • Improper storage of and waste to commence/bef transformer oil in open management implement ore contractor posing contamination system/procedure in is given access to soil in case of accordance with to substation leakage national laws and • Hazardous transformer regulations and the oil stored in barrels, but EHS Guidelines on not in dedicated Hazardous Materials bunded areas; this Management and poses a risk of leakage Waste Management to the ground. and including details of dedicated staff and vehicles. • System/procedure to include avoiding or minimizing the generation waste materials, as far as practicable. Where waste generation cannot be avoided but has been minimized, the preference should be recovery and reuse. Where waste cannot be recovered or reused, reputable, legitimate, licensed contractors must be appointed to treat, destroy and dispose of it in an environmentally sound manner. • Develop as part of system/procedure a

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S. Issue Corrective Action By whom By when Budget No (source) checklist for SS managers on correct storage of transformer oils, other fuel, oil, and chemicals, scrap metals and electronic wastes, municipal solid wastes, and sanitary wastes. • Provide training to all SS managers on implementation of the hazardous materials and waste management system/procedure and use of the checklist on storage and disposal (document training and attendance) 1b Improvement of • Staff to attend training New Khimti At the earliest SS hazardous materials (oils) on standardized 220/132kV opportunity - to construction and waste management hazardous materials GIS SS be completed and procedures and facilities and waste Project by NEA before operation at the substations. management Staff to any project budget. • Hazardous transformer system/procedure. implement, works utilizing oil stored in barrels, but • Implement hazardous to be this substation not in dedicated materials management cleared by commence/bef bunded areas; this system/procedure to NEA EHS ore contractor poses a risk of leakage environmentally sound Manager is given access to the ground. storage of all solid and hazardous waste in dedicated, labelled areas within the premises of substations; and control as well as environmentally sound clean up mechanism in case of accidental leakage. • Quantify and request stores to remove current scrap metal and electronic wastes stored on site, and agree its removal in a timely manner. • Move all barrels of new transformer oil to covered, impermeable, 110% bunded area. If not currently available

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S. Issue Corrective Action By whom By when Budget No (source) store them temporarily on drip trays. • Construct a dedicated, covered, bunded impermeable area to 110% for storage of new transformer oil to prevent the leakage of oil into the ground. 2a Transformer Oil Leakage- • Label all transformers New Khimti Immediately to SS O&M Short Term Measures at as PCB free in 220/132kV be completed budget. the substations. accordance with GIS SS by NEA before • Handling of hazardous international good Manager to any project transformer oil needs practice and keep log implement, works utilizing to be improved. In of equipment and PCB to be this substation particular, prevention of free status on-site. cleared by commence/bef spillage, and • Carry out preventive NEA ore contractor containment of leaked maintenance of is given access oil, in the event of transformers and spillage. ensure values, nuts and bolts are fully functional and tightly secured, ensure rubber seals of radiators are intact, continue to do so on a regular basis. • Provide in a signed, accessible location on- site sufficient absorbant materials (e.g. sorbants, dry sand, sand bags) for soaking up oil spills • Soak up existing oil spills and remove soil to depth 30cm for 1m beyond footprint for disposal to hazardous landfill site by reputable, legitimate, licensed contractor keeping photographic records and waste transfer notes. • Extra gravel to at least 30cm depth extending 1m beyond footprint to be placed to intercept and prevent any further oil percolation into the ground. • Soil and groundwater investigation to be

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S. Issue Corrective Action By whom By when Budget No (source) undertaken by suitably qualified consultant to confirm extent of any contamination across/beneath SS from oil leaks and spills and additional remedial measures required. 2b SF6 Leakage-Control • Installation of leakage New Khimti Immediately to SS O&M Measures at the detection equipment 220/132kV be completed budget. Substations. with monitoring and GIS SS by NEA before • Detection and Handling logbook keeping. Also Manager to any project of potential GHG SF6 during operation phase implement, works utilizing storage needs to be in of the project, leak to be this substation place in case of an detection mechanism cleared by commence//bef accidental leakage. with adequate training NEA EHS ore contractor for operation staff to Manager is given access prevent and manage such leak detection. 5 Fire Safety Equipment • In buildings, all rooms New Khimti Immediately to SS O&M Although Fire to be installed with fire 220/132kV be completed budget. extinguishers were detectors with visible GIS SS by NEA before observed next to the and audible alarm. Manager to any project transformers and • In each working area implement, works utilizing construction work in and building provide to be this substation ongoing safety related to fire extinguishers and cleared by commence/bef fire is advised under the other manual NEA EHS ore contractor corrective action as firefighting equipment Manager is given access suggestion rather than maintained in good existing lapses. working order and readily accessible – number to be adequate for size of premises, equipment installed, physical and chemical properties of substances present, and the maximum number of people present. • Ensure that a fire Marshall is provided on-site at all times; this can be a member of staff trained in emergency procedures to follow in event of fire. 6 Handling emergencies, • Develop and implement New Khimti Immediately to SS construction work is emergency 220/132kV be completed construction ongoing with placement preparedness and GIS SS by NEA before and of emergency response plans for (i) Manager to any project operation appreciative plan for environmental incident, implement, works utilizing budget. handling workers safety - (ii) health and safety to be this substation

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S. Issue Corrective Action By whom By when Budget No (source) a suggestion rather than incident in accordance cleared by commence/bef corrective action is with the General EHS NEA EHS ore contractor incorporated in CAP Guidelines to include Manager is given access column. details of emergency equipment on site, New Khimti 220/132kV GIS SS EHS Team, nearest doctors, hospital, fire station, monthly testing of fire alarms, emergency preparedness and response training plan, and quarterly emergency drills with records. 7 Safety training and • Conduct health and New Khimti Immediately to SS awareness raising safety training and 220/132kV be completed construction program. Training sites awareness workshop GIS SS by NEA before and have been built and CAP for staff - the Manager to any project operation column is suggested as importance of safety implement, works utilizing budget. an improvement rather needs to be stressed to to be this substation than correction. effect behavioural/ cleared by commence//bef attitudinal change NEA EHS ore contractor Manager is given access 8 Health and Safety of Staff • PPE (footwear, masks, New Khimti Immediately to SS O&M • Staff to use personal protective clothing and 220/132kV be completed budget. protective equipment goggles in appropriate GIS SS by NEA before (PPE) at all times. areas) to be provided Manager to any project to the staff in implement, works utilizing accordance with Table to be this substation 2.7.1. Summary of cleared by commence//bef Recommended NEA EHS ore contractor Personal Protective Manager is given access Equipment According to Hazard in EHS Guideline on OHS • Introduce disciplinary system for non- compliance with PPE requirements to enforce their use in accordance with the NEA requirements for work being carried out 9 Drainage • Identify areas of the SS New Khimti Immediately to SS most susceptible to 220/132kV be completed construction flooding from past GIS SS by NEA before and experience. Install Manager to any project operation underground drainage implement, works utilizing budget. pipe or channel of to be this substation sufficient size to cleared by commence//bef accommodate runoff NEA EHS ore contractor

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S. Issue Corrective Action By whom By when Budget No (source) around the perimeter of Manager is given access SS site with oil interceptor fitted on outlet into the drainage system, outside the boundary of the SS. • Once built, the drainage pipe or channel must be kept clear of scrap-metal and other solid waste in order to not clog the hydraulic flow into the drainage outside. 10 ADB loan substations • It should be confirmed NEA EHS Prior to the Under existing ADB loan Manager contractor for existing substations are in for PTDSSP being ADB loan compliance and there Barhabis given access are no outstanding and that the sites exceedance of Lapsiphedi performance standards 220/132 or corrective actions. kV

4. CONCLUSION AND RECOMMENDATIONS

21. The substations audited are under construction and were found by the consultant to be in compliance with laws and regulations of Nepal. Necessary permits and approvals have been obtained by NEA prior to commencement of the construction work. Two substations (Barhabis and Lapsiphedi 220/132 kV) are financed under ongoing ADB loan. All safeguards documents have been prepared as part of project approval. NEA has completed land acquisition for these substations and currently ownership of these sites is with NEA.

22. NEA has been found to be adequately responsive on suggestions for improvement to enhance the environmental safeguard of the construction and operation of existing substations. The NEA management teams very much appreciate the need for enhanced occupational, health and safety during the construction as well as in the work place and have shown interest in compliance, wherever compliance is required.

23. To conclude, the substations need enhancement in general EHS aspects. To rectify this NEA and contractors will need to carry out the corrective measures mentioned in the CAP for compliance of EHS safeguards.

24. General substation cleanliness, scrap metal collection, storage, and its subsequent disposal should be addressed before the commencement of activities planned under the Project.

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Annex 1: Photographic Records of Substation Conditions

Figure 10: Ongoing Construction Work Observed on 220/132kV Substation from 400kV SS site

Figure 11: Construction work for Khimti 220/132kV GIS Building with recently installed transformers observed towards left of the building and scrap dumping site observed towards far left

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Figure 12: One Household who has received compensation but has not left the premises because of internal family dispute between father and son

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Figure 13: Warning Signage used all over the construction site of the 220/132kV GIS Substation

Figure 14: Safety Inspection and Monitoring Site for under construction 220.132kV GIS Substation in Khmiti

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Figure 15: First Aid Room of the 220/132kV GIS Substation

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Figure 16: Recently Installed and oil filled Transformers pit filled with monsoonal rains, the water will be pumped out without releasing the spilled oil to the outside environment

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Figure 17: Surveillance work for safety in 220/132kV SS site

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Figure 18: Transformer Oil Drums after filling up the transformers of the 220/132kV GIS substation

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Figure 19: 400kv GIS Substation Site Land

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Figure 20: Levelling work at Barhabise Substation site

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Figure 21: Unstable Area where the retention work is ongoing

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Figure 22: Lapsiphedi Substation Site under yellow circle

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Annex 7 - Health Impacts Associated with EMF

A. CONSIDERATIONS TO ELECTRIC AND MAGNETIC FIELDS

Because there are no national standards about limit values for magnetic and electric fields, some general information about effects on the environment and on biological systems and internationally used recommendations are given below

A.1 Electric and Magnetic Fields – General Considerations

Considering low frequency (50 Hz) alternative current (AC) as used in power transmission, not electromagnetic waves are of interest, but we have to look at the strength of the generated electric and the magnetic field separately. A short calculation shows that in case of a 50 Hz alternative current the wavelength of the electromagnetic wave is 6,000 km.

Such wavelengths are not of relevance for humans. An electromagnetic wave of such a length cannot interfere with a human body that is only about 1.80 m.

However, considering mobile phones, using frequencies in the range of GHz, the associated wavelengths are of some mm and have to be considered electromagnetic fields.

Being in operation the strength of electric and magnetic fields is one of the permanent effects on the environment especially for people living e.g. along transmission lines or working in substations (mainly open-air sub-stations).

These fields can have effects on organism but can also interfere with other technical installations.

Because at present extensive discussions take place about effects of electromagnetic fields on the human health all over the world especially related to the use of mobiles, this issue should be considered comprehensively in HSE studies to such projects. Doing so, it has to be clarified that we are talking about electromagnetic fields only in high frequency ranges as used by mobiles.

In power transmission 50 Hz (low frequency) is used. Here, the generation of electromagnetic fields is not relevant because of its large amplitude. Using 50 Hz we have to consider both electric fields and magnetic fields separately. The electric field exists permanently if voltage is impressed, whereas the magnetic field only results if actual current is flowing.

In Section A.4 some results of recent scientific researches concerning biological and health effects of electric and magnetic fields are given.

Section A.2 describes internationally used standards and limit values, and in Annex A.3 an excerpt is given about the guideline of the internationally accepted International Commission on Non-Ionizing Radiation Protection (ICNIRP).

Regarding proposed project, it has to be stated that all internationally recognized standards with regard to EMF levels and public exposure as discussed in the various sections of this annexure will be met.

According to measurements in other similar projects the fields around the sub-stations will be far below any internationally accepted standard. The standards stipulated below, however, can become relevant

222 in case of high voltage overhead lines if, settlement is closely bypassed and within high voltage substations for workplaces.

A.2 Internationally Used Standards/ Limit Values Concerning Electric and Magnetic Fields (50 Hz) for the Public and at Working Places

Source El. Field Strength Magn. Flux [kV/m] density [µT] ICNIRP recommended 50/60 Hz Reference levels for exposure to time-varying electric and magnetic fields (unperturbed r.m.s. values) Occupational exposure 10 500 General public exposure 5 100 Limit values according to the European Directive 2004/40/EC Exposure of workers 10 500 Limit (r.m.s) value as per 26. BimSchVer 12/96 General public up to 24 hours /day 5 100 Limit values as per VDE V 0848 Part 4/A3 at 50 Hz r.m.s. values for equivalent field strength in exposure range 1for 30 4,240 exposure times up to 1 h/d r.m.s. values for equivalent field strength in exposure range 1for 30 2,550 exposure times up to 2 h/d r.m.s. values for equivalent field strength in exposure range 1for 21.32 1360 continuous exposure r.m.s. values for equivalent field strength in exposure range 2 6.67 424 Note: r.m.s. = root mean square (value)

Exposure range 1 includes monitored areas, e.g. operating zones, areas monitored by operators, generally accessible areas, in which, owing to the operating mode or the length of stay, it is guaranteed that exposure only occurs for a short period of time

Exposure range 2 includes all areas in which not only short-term exposure can be expected, for example: areas containing residential and social buildings, individual residential sites, parks and facilities for sport, leisure and relaxation, operating zones where a field generation is not expected under normal conditions (ICNIRP=International Commission on Non-Ionising Radiation Protection, BimSchVer=German Bundesimmissionsschutzverordnung, VDE=Verband Deutscher Elektrotechniker e.V., Cenelec=European Committee for Electro technical Standardisation)

As it can be seen from the data given above, limit values arising from different organisations and used in different countries can vary.

The core problem is that up to now nobody knows exactly what the effects of electric and magnetic fields on the biology are and what the best limit values are to protect human health as discussed in Section A.4.

However, some generally accepted recommendations can be given. At the moment, it is internationally agreed that for the public and for permanent exposure, the electric field must not exceed 5 kV/m and the magnetic flux density must not exceed 100 μT. This means, outside the fence of substations 5 kV/m and 100 μT respectively is the limit. The same is valid for settlements/houses along transmission lines. The corridor for transmission lines has to be wide enough that the electric and magnetic field

223 strength at the edge of this corridor is less than the limits mentioned above.

A.3 ICNIRP Guidelines and Statements (excerpt) Guidelines for Limiting Exposure to Time- varying Electric, Magnetic, & Electromagnetic Fields

In 1974, the International Radiation Protection Association (IRPA) formed a working group on non- ionizing radiation (NIR), which examined the problems arising in the fields of protection against the various types of NIR.

At the IRPA Congress in Paris in 1977, this working group became the International Non- Ionizing Radiation Committee (INRC).

In co-operation with the Environmental Health Division of the World Health Organization (WHO), the IRPA/INRC developed a number of health criteria documents on NIR as part of WHO’s Environmental Health Criteria Program, sponsored by the United Nations Environment Program (UNEP).

Each document includes an overview of the physical characteristics, measurement and instrumentation, sources, and applications of NIR, a thorough review of the literature on biological effects, and an evaluation of the health risks of exposure to NIR. These health criteria have provided the scientific database for the subsequent development of exposure limits and codes of practice relating to NIR.

At the eighth International Congress of the IRPA (Montreal, 18-22 May 1992), a new independent scientific organization – the International Commission on Non-Ionizing Radiation Protection (ICNIRP) – was established as a successor to the IRPA/INIRC. The functions of the Commission are to investigate the hazards that may be associated with the different forms of NIR, develop international guidelines on NIR exposure limits, and deal with all aspects of NIR protection.

Biological effects reported as resulting from exposure to static and extremely low frequency (ELF) electric and magnetic fields have been reviewed by UNEP/WHO/IRPA. Those publications and a number of others provided the scientific rationale for the Guidelines for limiting Exposure to time varying Electric, Magnetic, and Electromagnetic Fields.

The main objective of the guidelines is to establish the limit of EMF exposure that will provide protection against known adverse health effects.

An adverse health effect causes detectable impairment of the health of the exposed individual or of his or her offspring; a biological effect, on the other hand, may or may not result in an adverse health effect.

Studies on both direct and indirect effects of EMF are described; direct effects result from direct interaction of fields with the body, indirect effects involve interactions with an object at a different electric potential from the body. Results of laboratory and epidemiological studies, basic exposure criteria, and reference levels for practical hazard assessment are discussed, and the guidelines presented apply to occupational and public exposure.

The guidelines will be periodically revised and updated as advances are made in identifying the adverse health effects of time-varying electric, magnetic, and electromagnetic fields. In establishing exposure limits, the Commission recognizes the need to reconcile a number of differing expert

224 opinions. The validity of scientific reports has to be considered, and extrapolations from animal experiments to effects on humans have to be made.

There is insufficient information on the biological and health effects of EMF exposure of human populations and experimental animals to provide a rigorous basis for establishing safety factors over the whole frequency range and for all frequency modulations. In addition, some of the uncertainty regarding the appropriate safety factor derives from a lack of knowledge regarding the appropriate dosimetry.

The restrictions in the guidelines were based on scientific data alone; currently available knowledge, however, indicates that these restrictions provide an adequate level of protection from exposure to time-varying EMF.

Two classes of guidance are presented:

1. Basic restrictions: Restrictions on the effects of exposure are based on established health effects and are termed basic restrictions. Protection against adverse health effects requires that these basic restrictions are not exceeded.

2. Reference levels: Reference levels of exposure are provided for comparison with measured values of physical quantities; compliance with all reference levels given in these guidelines will ensure compliance with basic restrictions. If measured values are higher than reference levels, it does not necessarily follow that the basic restrictions have been exceeded, but a more detailed analysis is necessary to assess compliance with the basic restrictions.

Basic Restrictions: Basic restrictions on exposure to time varying electric, magnetic, and electromagnetic fields are based directly on established health effects. Depending upon the frequency of the field, the physical quantities used to specify these restrictions are current density (J), specific energy absorption rate (SAR), and power density (S). Only power density in air, outside the body, can be readily measured in exposed individuals.

Different scientific bases were used in the development of basic exposure restrictions for various frequency ranges. For electric power transmission and distribution only the low frequency (50 Hz) fields are relevant which are indicative of much lesser biological effects than fields caused by high- frequency energy. This is the reason that the basic restrictions for the range of frequencies between 1 Hz and 10 MHz are provided exclusively on current density to prevent effects on nervous system functions. The basic restrictions for current densities, whole body average SAR, and localized SAR for frequencies between 1 Hz and 10 GHz are presented in Table 1.

The occupationally exposed population consists of adults who are generally exposed under known conditions and are trained to be aware of potential risk and to take appropriate precautions. By contrast, the general public comprises of individuals of all ages and of varying health status and may include particularly susceptible groups of individuals.

In many cases, members of the public are unaware of their exposure to EMF. Moreover, individual members of the public cannot reasonably be expected to take precautions to minimize or avoid exposure. It is these considerations that underlie the adoption of more stringent exposure restrictions for the public than for the occupationally exposed population.

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Table 1: Basic Restrictions for Time-varying Electric and Magnetic Fields for Frequencies up to 10 GHz Parameter Frequency Current Density f. Whole-Body Localized SAR Localized Range Head and Trunk average SAR (Head + Trunk) SAR (limbs) (mA m-2) (rms) (W Kg-1) (W Kg-1) (W Kg-1) Occupational up to 1 Hz 40 - - - Exposure 1 – 4 Hz 20/f - - - 4 – 1 KHz 10 - - - 1 -100 KHz f/100 - - - 100 KHz-10MHz f/100 0.4 10 20 10 MHz- 10 GHz - 0.4 10 20 General Public up to 1 Hz 8 - - - Exposure 1 – 4 Hz 8/f - - - 4 – 1 KHz 2 - - - 1 -100 KHz f/500 - - - 100 KHz-10MHz f/500 0.08 2 4 10 MHz- 10 GHz - 0.08 2 4 * Note:

1. f is the frequency in hertz. 2. Because of electrical inhomogeneity of the body, current densities should be averaged over across- section of 1 cm2 perpendicular to the current direction. 3. For frequencies up to 100 kHz, peak current density values can be obtained by multiplying the rms value by • √2 (~1,414). For pulses of duration to the equivalent frequency to apply in the basic restrictions should be calculated as f = 1/(2t). 4. For frequencies up to 100 kHz and for pulsed magnetic fields, the maximum current density associated with the pulse can be calculated from the rise/fall times and the maximum rate of change of magnetic flux density. The induced current density can then be compared with the appropriate basic restriction. 5. All SAR values are to be averaged over any 6-min period. 6. Localized SAR averaging mass is any 10 g of contiguous tissue; the maximum SAR so obtained should be the value used for the estimation of exposure. 7. For pulses of duration tp the equivalent frequency to apply in the basic restrictions should be calculated as f = 1/(2tp). Additionally for pulsed exposures in the frequency range 0.3 to 10 GHz and for localized exposure of the head, in order to limit or avoid auditory effects caused by thermo elastic expansion, an additional basic restriction is recommended. This is that the SA should not exceed 10 mJ Kg-1 for workers and 2 mJ kg-1 for the general public, averaged over 10 g tissue. Reference levels

These levels are provided for practical exposure assessment purposes to determine whether the basic restrictions are likely to be exceeded. Some reference levels are derived from relevant basic restrictions using measurement and/or computational techniques, and some address perception and adverse indirect effects of exposure to EMF.

The derived quantities are electric field strength (E), magnetic field strength (H), magnetic flux density (B), power density (S), and currents flowing through the limbs (l). Quantities that address perception and other indirect effects are contact current (lc) and, for pulsed fields, specific energy absorption (SA).

In any particular exposure situation, measured or calculated values of any of these quantities can be compared with the appropriate reference level.

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Compliance with the reference level will ensure compliance with the relevant basic restriction. If the measured or calculated value exceeds the reference level, it does not necessarily follow that the basic restriction will be exceeded. However, whenever a reference level is exceeded, it is necessary to test compliance with the relevant basic restriction and to determine whether additional protective measures are necessary. The reference levels are intended to be spatially averaged values over the entire body of the exposed individual, but with the important provision that the basic restrictions on localized exposure are not exceeded.

Reference levels for exposure of the general public have been obtained from those for occupational exposure by using various factors over the entire frequency image. These factors have been chosen on the basis of effects that are recognized as specific and relevant for the various frequency ranges.

Generally speaking, the factors follow the basic restrictions over the entire frequency range, and their values correspond to the mathematical relation between the quantities of the basic restrictions and the derived levels as described below:

In the frequency range up to 1kHz, the general public reference levels for electric fields are one-half of the values set for occupational exposure.

The value of 10kV m-1 for 50-Hz or 8.3kV m-1 for a 60-Hz occupational exposure includes a sufficient safety margin to prevent stimulation effects from contact current under all possible conditions.

Half of this value was chosen for the general public reference levels i.e. 5kV m-1 for 50 Hz or 4.2 kV m-1 for 60 Hz, to prevent adverse indirect effects for more than 90% of exposed individuals.

Table 2 shows the related reference levels for occupational and for general public exposure. ICNIRP notes that the industries causing exposure to electric and magnetic fields are responsible for ensuring compliance with all aspects of the guidelines.

Table 2: Reference Levels for Occupational and General Public Exposure to Time-varying Electric and Magnetic Fields (unperturbed rms values) Parameter Frequency E-FIELD H-FIELD B-FIELD Equivalent Range Strength Strength Strength plane wave (V m-1) (A m-1) (µT) power density Seq (W m-2) Occupational up to 1 Hz - 1.63 x 105 2 x 105 - Exposure 1 – 8 Hz 20000 1.63 x 105/f2 2 x 105/f2 - 8 – 25 Hz 20000 2 x 104/f 2.5 x 104/f - 0.025 – 0.82 kHz 500/f 20/f 25/f - 0.82 – 65 kHz 610 24.4 30.7 - 0.065 – 1 MHz 610 1.6/f 2.0/f - 1 – 10 MHz 610/f 1.6/f 2.0/f - 10 – 400 MHz 61 0.16 0.2 10 400 – 2000 MHz 3f½ 0.008f½ 0.01f½ f/40 2 – 300 GHz 137 0.36 0.45 50 General Public up to 1 Hz - 3.2 x 104 4 x 104 - Exposure 1 – 8 Hz 10000 3.2 x 104/f2 4 x 104/f2 - 8 – 25 Hz 10000 4000/f 5000/f - 0.025 – 0.8 kHz 250/f 4/f 5/f - 0.8 – 3 kHz 250/f 5 6.25 - 3 – 150 kHz 87 5 6.25 - 0.15 – 1 MHz 87 0.73/f 0.92/f - 1 – 10 MHz 87/f½ 0.73/f 0.92/f -

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10 – 400 MHz 28 0.073 0.092 2 400 – 2000 MHz 1.375f½ 0.0037/f½ 0.0046f½ f/200 2 – 300 GHz 61 0.16 0.20 10 * Note:

1. f as indicated in the frequency range column. 2. Provided that basic restrictions are met and adverse indirect effects can be excluded, field strength values can be exceeded. 3. For frequencies between 100 kHz and 10 GHz. Seq, E2, H2, and B2 are to be averaged over any 6-min period. 4. For peak values at frequencies up to 100 kHz see Table 13-1, note 3. 5. For peak values at frequencies exceeding 100 kHz see Figs.1 and 2. Between 100 kHz and 10 MHz, peak values for the field strengths are obtained by interpolation from the 1,5-fold peak at 100 kHz to the 32-fold peak at 10 MHz. For frequencies exceeding 10 MHz it is suggested that the peak equivalent plane wave power density, as averaged over the pulse width does not exceed 1000 times the Seq restrictions, or that the field strength does not exceed 32 times the field strength exposure levels given in the table. 6. For frequencies exceeding 10 GHz, Seq, E2, H2, and B2are to be averaged over 68/f 1.05–min period (f in GHz). 7. No E-field value is provided for frequencies <1 Hz, which are effectively static electric fields. Electric shock from low impedance sources is prevented by established electrical safety procedures for such equipment Perception of surface electric charges will not occur at field strengths less than 25 kVm-1. Spark discharges causing stress or annoyance should be avoided. More information about the work of ICNIRP can be found on the internet under www.icnirp.org. A.4 Biological and Health Effects of Electric and Magnetic Fields

To be precise in physical terms, when speaking about electrical facilities, a distinction has to be made between two types of fields: the electric and the magnetic field.

The electric field denotes the difference in electric potential measured as a voltage between two points one meter apart. If an electric current flow in a conductor, a magnetic field will always build up around it. The electric field is generated by the line voltage on the conductors. The electric field of power lines depends on the voltage, on the circuit numbers, on the design of the circuits and on the design of the cable itself. Its strength lessens rapidly according to the distance. Normally, the field is strongest in the middle of the line span where the phase conductors have the greatest slag.

The strength of the electric field is expressed in volts per meter, and in the power-line context usually in kV/m. Strong 50 Hz electric fields occur mainly in high voltage installations, i.e. inside switchyards and below transmission lines. Electric fields are shielded by objects which are earthed, such as trees, buildings etc.

The magnetic field around a power line is generated by the current in the conductors. Since the current is proportional to the line’s load, the magnetic field often varies both over 24 hours and from one season to another. The magnetic field under a power line is strongest in roughly the same areas as the electric field. The magnetic field is expressed in terms of teslas [T] (1 T = 1 Vs/m2), which is a measure of the field’s flux density. In the context of power lines, microteslas [µT] are used. An older unit, Gauss [G], is used in e.g. USA (1 mG = 0.1 µT). Magnetic fields are not shielded by walls and roofs. Around power lines they are often weaker than those one may come into contact within many other contexts in everyday life at work.

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In Indonesia and Southeast Asia, electricity is transmitted with alternating current at a frequency of 50Hz (change of polarity at 50 cycles per second). This gives rise to an alternating electric and magnetic field.

There follows a brief discourse on the status of knowledge concerning the influence of 50Hz electromagnetic fields on the environment. Investigations and research on these effects of low frequency electromagnetic fields have been more intensive worldwide from the early Seventies.

In the Federal Republic of Germany, with the establishment of the subcommittee “Electric and Magnetic Fields” in the Association of German Electricians (VDE), a forum for discussions has been created, in which an intensive exchange of experience and ideas takes place.

The International Radiation Protection Association (IRPA), a body working under the auspices of the World Health Organization (WHO), has initiated activities concerned with non-ionizing radiation by forming a working group in 1974. At the IRPA Congress in Paris in 1977, this working group became the International Non-Ionizing Radiation Committee (INRC). An excerpt of the “Guidelines for limiting exposure to time varying electric, magnetic, and electromagnetic fields” is given in Section A.3.

Magnetic fields have the property of penetrating the human organism. Low frequency fields which arise in connection with 50Hz alternating current can cause tissues and cells to enter into an excited state due to energy absorbed by the human body. If fields are intense, this can result in stimulation of nerves, muscles and organs.

The above effects are felt especially in the higher frequency range.

The general rule is that the higher the cycling rates of the alternating electromagnetic field, the more pronounced are its effects on health. High frequency fields in the range above 30,000Hz, which occur, for example, in communications in the form of radio waves, have a disproportionately high significance for the human organism, as these give rise to heating effects.

The biological effects of electric and magnetic fields depend primarily on their field strengths. Greater biological impact is ascribed to magnetic fields than to electric fields. Electric fields can be screened relatively easily, whereas magnetic fields are highly penetrating. Though electricity has intensively been used in industry and household for more than a century, as shown above, thorough scientific research on biological effects of electromagnetic fields has been conducted only in the last 25 years.

Today, among scientists there is still a considerable difference of opinion as to what degree of possible detrimental health influence caused by these fields.

There are several investigations and publications reporting a severe influence of electromagnetic fields, but the discussion about biological and health effects is still going on. The International Council on Large High Voltage Electric Systems (CIGRE), a permanent non-governmental and non-profit- making international association based in France, publishes from time to time summaries of latest researches on bio- and health effects of electric and magnetic fields. An excerpt as of 1999 is given below:

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Cancer

In October 1996 a large-scale evaluation was published in the U.S. (U.S. National Research Council EMF Committee, 1996) reviewing more than 500 studies from 1979 onwards. The report came to the conclusion that ‘no clear, convincing evidence exists to show that residential exposures to electric and magnetic fields (EMF) are a threat to human health’.

Some other epidemiological studies have demonstrated statistical associations between childhood cancer, especially leukemia, and proximity to power lines. However, childhood leukemia is a rare illness and the number of cases is very small what makes statistical statements very difficult. In addition, a statistical association is not synonymous with proof that a causal connection exists.

Although several studies show that leukemia and brain tumours are more common in ‘electrical occupations’, animal-experiment studies have failed to link exposure to electric or magnetic fields with an elevated cancer risk.

However, electric and magnetic fields have an influence on melatonin rhythm. Melatonin is a hormone formed in the pineal gland of the brain and it is known that it plays a role in the development of certain hormone-dependent types of cancer, such as breast cancer.

Reproduction

There are no evidence that electric or magnetic fields have any impact on fertility, miscarriage, malformations or other reproduction parameters in either animals or human beings.

Effects on nervous system

Soviet and Swedish studies suggest various symptoms, such as headache, tiredness, insomnia, mild depression, etc. arise among male switchyard workers. A possible mechanism can be the proven influence of electric and magnetic fields on melatonin excretion. Melatonin also controls sleep, wakefulness, and mood. One entirely new research in this field is the possible connection of magnetic fields and certain forms of dementia, such as Alzheimer’s disease. However, no actual direct influence of magnetic and electric fields regarding the diseases stated above has yet been demonstrated in scientific experiments or investigations.

The above given descriptions show that much research has been undertaken with contradictory results and some results that are often hard to interpret.

However, some large-scale research is now underway in Germany, USA, Canada, UK, and Sweden, and it is expected that knowledge in this field will grow substantially over the next few years.