Social Monitoring Report

Social Due Diligence Report August 2012

THA: Ayudhaya Natural Gas Power Project

THA: Gulf JP UT Power Project Social Safeguards Compliance Due Diligence Report

I. INTRODUCTION

1. The Uthai Power Plant of The Gulf JP UT (GUT) Co., Ltd. covers an area of 350 rais in the Rojana Industrial Park at Ban Chang Sub-district, , Phra Nakhon Si Ayutthaya Province. The power plant is estimated at 80 km north of . The proposed Uthai Power Plant will utilize natural gas as main fuel and diesel oil as back up fuel. The total installed capacity of this power plant, comprising two 850 MW blocks of combined cycle facilities, is approximately 1,700 MW. The length of the transmission line is about 15.83 km and will be constructed and owned by Electricity Generating Authority of (EGAT). The substation that will be tapped for the dispatch of power is the 500 kV Phachi 2 Sub-station. Both transmission line and substation are in EGAT’s scope or work under the existing power purchase agreement (PPA). The natural gas requirement of the project will be supplied by Petroleum Authority of Thailand (PTT) Co., Ltd. and will require the construction of gas pipeline of 20 km. Raw water will be provided by the Rojana Industrial Park and will be sourced from the Pa Sak river and Rapeepat canal through existing water channels and pipelines. The nearest community is Nom Nang Som, comprised of small clusters of households about 630 meters away from the southern boundary of the project. More than 3,500 individuals participated in the public consultation and participation activities conducted, and involved different community sectors such as provincial and district level government officials, community leaders and local residents in the adjacent and nearby districts, environmental groups, representatives of various educational institutions, local media, and other key public figures.

2. A Mission1 was fielded on 8-10 May 2012 to conduct an environmental and social due diligence. The Mission visited the Project site including the point of connection of water and gas pipelines, drove along the alignment of the gas pipeline, met with the officials of the Rojana Industrial Park, and interviewed nearby local residents outside the industrial park. This report was prepared in compliance with the 2009 ADB Safeguards Policy Statement (SPS).The due diligence aims to (i) identify past or present concerns related to land acquisition (physical or economic displacement) and ethnic minorities/Indigenous Peoples aspect; and (ii) determine whether or not corrective actions are necessary to ensure compliance with safeguard requirements.

II. AUDIT FINDINGS

A. Involuntary Resettlement Safeguard

Scope of Land Procurement

3. The Project components requiring land are the following: Power Island, Utility/ Support Systems, Storage Facilities, General Site Buildings, Main Transformers and Switchyard, and General Areas, all within the 350 rai or approximately 56 ha inside the phase VI of the Rojana

1 The site visit mission comprised contingents from the JBIC, ADB, KBank, BTMU, BBL, SMBC, SCB, LH, A&O, Poyry, Willis, and environmental and social experts commissioned by lenders and Gulf JP UT.

1 Industrial Park (Details of the Project components in Attachment 1). The territorial area of the power plant can be described as follows: North borders the area of the Rojana Industrial Park Phase VI, South borders the area of the Rojana Industrial Park Phase VI and connects to paddy fields, East borders the area of the Rojana Industrial Park Phase VI, and connects to paddy fields, and West borders the area of the Rojana Industrial Park Phase VI. The development of the procured land within the industrial park is in compliance with all local regulations and land utilization planning policies of the Department of Public Works and Town & Country Planning.

4. The gas pipeline will connect between GUT Project site and PTT Wang Noi Metering Station, located in , Ayutthaya province. The total length of the gas pipeline is about 20 km and will pass through 7.3 km stretch of private land, ROW of Royal Irrigation Department for about 10 km, and Rojana Industrial Park for about 3 km. Of the ROW passing through 7.3 km private land, all 7.3km has an existing PTT’s gas pipelines and 6.7 km has an existing EGAT’s transmission line facility, with ROW already acquired by PTT and EGAT. All private land that will be affected by the ROW will be compensated at fair value determined by Energy Regulatory Commission of Thailand (“ERC”). A block valve will be constructed almost halfway from the metering station. The valve construction required the acquisition of about 3 rais, comprising two lots and owned by the same person. There are a total of 97 land plots affected by the gas pipeline: 19 are institutional owners such as local district offices, educational institution, and private enterprises; and the remaining 78 are private individuals or households. The land for the block valve was acquired following an agreed purchase price while the payment for the ROW followed agreed market value. (See Attachment 2 for the land parcels affected by gas block valve and gas pipeline).

5. During the mission, the presence of 12 letters of objection was noted from some land owners affected by the gas pipeline ROW procurement. The letters are noted to be related to the level of payment, timing and procedure. The objections are not expected to impact the project implementation since land plots under objection have already been vacated by PTT and EGAT for an already existing PTT’s gas pipeline ROW and existing EGAT’s transmission lines. The GUT is of the opinion that since the concerned land have been vacated by PTT and EGAT for an existing gas pipeline and EGAT’s transmission line, the intent on the part of the land owners to object the gas pipeline route of the GUT is essentially for bargaining reasons.

6. The ROW for the transmission line is the responsibility of EGAT under the current power purchase agreement. The transmission line will be designed, constructed, tested, commissioned, owned, operated and maintained by EGAT, while the Pa-Chi 2 substation is owned and operated also by EGAT. From the power plant site, it will connect to the Pa-Chi 2 Substation located in Pachi district, Ayutthaya province. The length of transmission line is approximately 15 km and will be passing through paddy fields mostly. A preliminary route survey is available as follows: (i) irrigation canal, Nong Nam Som canal, Huai Ba canal, Nong Ngu Lueam canal, (ii) rural road Aor Yor 4015, rural road Aor Yor 3043, rural road Aor Yor 3012 and rural road Aor Yor 3027, (iii) a 69-kV electricity network from Ang Thong 1 to Phachi substation, (iv) section A3-A4 of the transmission line will pass through the area near Ban Chang and Ban Saphan Hin. The EGAT’s practice of acquiring ROW is always based on market rate to ensure ROW is procured timely so as not to hamper the construction of transmission line. The transmission line is expected to be completed in June 2014. As of due diligence date, actual representation with land owners has not taken place.

2 Procedure for Procuring ROW for the Gas Pipeline and Transmission Line

7. The ROW acquisition for energy facilities in Thailand is guided by the Energy Industry Act of 2007, it provides the procedure for energy network system to acquire private land, among others. If the gas pipeline or transmission line route passes on private land, it is required to apply for the Energy Network System with Energy Regulatory Commission of Thailand (“ERC”) to secure proper regulatory permits. The procedure of the Energy Network System is summarized below:

- For the benefit of exploration or survey for a location for the construction of an energy network system, an indicative route plan is submitted to ERC. - Upon ERC’s approval of the route plan; ERC announces the designation of the area to be surveyed by posting up a written notification at the local area such as the district office or the minor-district office, etc. In addition, ERC sends letters to inform land owners that a gas pipeline or transmission line will be passing on their land. - ERC sets up the Compensation Committee to determine the fair amount for the private land owners. On immovable property, if any damage or depreciation of the immovable property or asset occurs, a notification on the amount for the damages to the concerned person according to the criteria is sent following the procedures and conditions specified by the ERC. In this regard, the amount shall be fairly assessed based on prevailing market rate, including the charge for loss of economic benefits that should have been gained from the use of the concerned property. - The owner or occupying person or right holder of the immovable property or assets may lodge an appeal against the amount to the ERC. The ERC shall finalize the deliberation on the appeal. However, the ERC’s decision on the appeal shall be treated as final. The committee ensures that the compensation is based on market rate.

8 In addition to the procedure prescribed by the Energy Industry Act of 2007, EGAT also has its own internal policy to select transmission line route and consider the following criteria to minimize the impact on local communities and environment: (i) impact minimization covering the avoidance of development areas, historical sites, main roads, buildings and houses and farm land, (ii) environmental impact minimization covers avoiding route that will traverse wildlife sanctuary, national park, watershed (level 1A and 1B), mangrove forest, conservation areas, (iii) engineering feasibility covering criteria on shortest straight line route, avoidance of wind and lightning factors, avoiding intersection of highways, significant distance from road, railways, irrigation canals and river banks. EGAT generally follows fair market price for its procurement of ROW.

B. Indigenous Peoples Safeguard

9. The Project is located in the Rojana Industrial Park at Ban Chang Sub-district, Uthai District, Phra Nakhon Si Ayutthaya Province. There are no indigenous peoples or ethnic groups in living around or near the industrial park. The construction and operation of the Project will not have material impact to any indigenous peoples or ethnic groups.

3 III. CONCLUSIONS AND RECOMMENDATIONS

A. Involuntary Resettlement Safeguard

10. The lot where the power plant facility is to be constructed covering an area of 350 rais or 56 hectares is purchased from the Rojana Industrial Park. The ROW procurement for the gas pipeline and transmission line follows (or will follow, as in the case of transmission line) the procedures prescribed under the Energy Industry Act of 2007, which provides for among others, the notification and public disclosure of information, determination of amount through compensation committee, fair value market rate, and grievance redress mechanisms. The procurement of ROW is considered private transaction and was done and documented in accordance with existing rules and regulation. The GUT will set appropriate milestone for the unconditional and irrevocable settlement of claims with all land owners after all payments have been made.

B. Indigenous Peoples Safeguard

11. There are no indigenous peoples or ethnic groups in living around or near the industrial park. The construction and operation of the Project will not have material impact to any indigenous peoples or ethnic groups.

4 Attachment 1 Summary of Main Project Components and Land Requirements

Project Location Area Length Description Component Required (km) Natural Gas Fired Rojana Industrial Park, Ban Chang 121,700 N/A Combined Cycle Power Plant; including: Combined Cycle Sub-district, Uthai district, Ayutthaya m2 Power Plant Province • Power Island: The Power Island includes the power producing equipment and systems. Each Power Island Block consists of two (2) CTGs, two (2) HRSGs and one (1) STG together with the interconnecting systems, such as the condensate system, the feed-water system and the circulating-water system. Two (2) identical Power Island Blocks are provided for the Facility; • Utility/ Support Systems: These will include, water treatment system, chemical feed systems, closed cooling water system, primary and standby fuel systems, service and instrument air system, wastewater treatment system, firewater system, potable water system, service water system, demineralized water system,, HVAC, lubricating oil system and station service transformers (which supply power to plant auxiliary load); • Storage Facilities: These will include the distillate fuel unloading area and distillate fuel storage tanks, service water/firewater storage tank, storm water holding ponds, cooling water holding pond, demineralized water

5 Project Location Area Length Description Component Required (km) storage tank, and chemical storage tanks; • General Site Buildings: These will include the administration building, the visitors center, the workshop and warehouse building, the control building, the electrical building, and the guard house; • Main Transformers and Switchyard; and • General Areas: These will include site roads, drainages, flood protection dike, car park and landscaped areas etc. Reservoir Rojana Industrial Park, Ban Chang 55,700 m2 N/A Raw water reservoir has approximate storage Sub-district, Uthai district, Ayutthaya capacity of 150,000 cubic meters Province Natural Gas • Wangchula Sub-district, Wangnoi N/A 20 km The gas pipeline will be constructed by GUT. Supply Line District, Ayuthaya Province The length of the gas pipeline is approximately • Chemeab Sub-district, Wangnoi 20 km. The gas pipeline will connect between District, Ayuthaya Province GUT Project and PTT’s Wangnoi Metering • Lam Ta Sao Sub-district, Station. The gas pipeline will be passed 3 Wangnoi District, Ayuthaya major area which are private land (7 km), Province Royal Irrigation Department’s area (10 km) • Nong Nam Som, Sub-district, Utai and Rojana IP’s area (3 km). District, Ayuthaya Province • Sam Bandit Sub-district, Utai District, Ayuthaya Province • Ban Chang Sub-district, Utai District, Ayuthaya Province

Water Intake Rojana Industrial Park, Ban Chang N/A N/A Rojana IP will provide the raw water to GUT. structure and Sub-district, Uthai district, Ayutthaya The interconnection points are located at water pumping Province GUT’s site boundary which is in Rojana IP’s

6 Project Location Area Length Description Component Required (km) station (outside land. and inside the Rojana IP Therefore, GUT is not required to have water intake structure and water pumping station.

Water Pipeline Rojana Industrial Park, Ban Chang N/A N/A Rojana IP will provide the raw water to GUT. Sub-district, Uthai district, Ayutthaya The interconnection points are located at Province GUT’s site boundary which is in Rojana IP’s land.

Therefore, GUT is not required to construct water pipeline

Substation Moo 3, Koak-Muang Sub-District, Approx N/A According to the PPA, the NTF will design, Pachee District, Phra Nakhon Si 230 rai construct, test, commission, own, operate and Ayutthaya Province maintaine by EGAT. EGAT will be responsible to obtain all necessary government approvals and right-of-way, easements and continuing access rights for the construction and ongoing maintenance of NTF.

The NTF comprises the following: • A 500 kV double circuits of 4 x 795 MCM ACSR transmission lines to connect between existing EGAT’s 500 kV Pha-Chi 2 Substation and GUT’s substation – approximately 15 km • An existing EGAT’s 500 kV Phachi 2 Gas Insulated Substation expansion for 2 feeders to GUT’s substation • 2 composite overhead ground wires with optical fibre (“OPGW”) and 2 sets of OPGW junction box

7 Project Location Area Length Description Component Required (km)

The EGAT’s 500 kV Pha-Chi 2 substation is the central connection of GUT’s substation, Wang Noi Substation and Tha Tako Substation. The connection point between GUT’s substation and the NTF will be at the take-off structure of outgoing lines connecting to EGAT system at the GUT’s substation.

Power • Sena Sub-district, Utai District, N/A 15 km According to the PPA, the EGAT Transmission Transmission Line Ayuthaya Province Line will design, construct, test, commission, • Ban Hip Sub-district, Utai District, own, operat and maintain by EGAT. Ayuthaya Province • Nong Mai Sung Sub-district, Utai The EGAT Transmission line 500 kV double District, Ayuthaya Province circuits of 4 x 795 MCM ACSR transmission • Sam Bandit Sub-district, Utai lines to connect between existing EGAT’s 500 District, Ayuthaya Province kV Pha-Chi 2 Substation and GUT’s • Phachi Sub-district, Phachi substation – approximately 15 km District, Ayuthaya Province • Khok Muang Sub-district, Phachi District, Ayuthaya Province

Green Area Rojana Industrial Park, Ban Chang 24,000 m2 N/A Planting big trees along the boundary. Sub-district, Uthai district, Ayutthaya Province

8 Attachment 2

Table 1. Names of affected land owners – Block Valve

Area Location No. lots Land Owner Sq. Rai Ngarn Sub-district District Province wah 1 1 2 0 0 Sam Bandit U Thai Ayutthaya 2 2 1 3 31 LumTa Sao Wang Noi Ayutthaya

Table 2. Names of affected land owners – Gas pipeline

Area Location Land Owners (names are deleted for No. lots Sq. privacy and security purposes) Rai Ngarn Sub-district District Province wah 1 001 14 3 79 Wangchula Wangnoi Ayutthaya 2 002 12 2 13 Wangchula Wangnoi Ayutthaya 3 003 3 0 55 Wangchula Wangnoi Ayutthaya 4 004 15 2 69 Wangchula Wangnoi Ayutthaya 5 005 15 2 70 Wangchula Wangnoi Ayutthaya 6 006 15 2 69 Wangchula Wangnoi Ayutthaya 7 007 9 3 97 Wangchula Wangnoi Ayutthaya 8 008 19 1 94 Wangchula Wangnoi Ayutthaya 9 009 19 3 0 Wangchula Wangnoi Ayutthaya 10 010 19 3 1 Wangchula Wangnoi Ayutthaya

9 Area Location Land Owners (names are deleted for No. lots Sq. privacy and security purposes) Rai Ngarn Sub-district District Province wah 011

11 011

011 10 0 0 Wangchula Wangnoi Ayutthaya 011

011 011 12 012 20 0 50 Wangchula Wangnoi Ayutthaya 13 013 9 2 75 Wangchula Wangnoi Ayutthaya

14 014 21 1 20 Wangchula Wangnoi Ayutthaya

15 015

13 2 2 Wangchula Wangnoi Ayutthaya

16 016 13 2 2 Wangchula Wangnoi Ayutthaya 17 017 19 0 44 Wangchula Wangnoi Ayutthaya 18 018 19 0 26 Wangchula Wangnoi Ayutthaya 19 019 9 2 29 Wangchula Wangnoi Ayutthaya

10 Area Location Land Owners (names are deleted for No. lots Sq. privacy and security purposes) Rai Ngarn Sub-district District Province wah

20 020

28 3 63 Wangchula Wangnoi Ayutthaya

21 021

37 3 63 Wangchula Wangnoi Ayutthaya

22 022 57 2 19 Wangchula Wangnoi Ayutthaya

11 Area Location Land Owners (names are deleted for No. lots Sq. privacy and security purposes) Rai Ngarn Sub-district District Province wah

23 023 38 1 53 Wangchula Wangnoi Ayutthaya 24 024 19 0 61 Wangchula Wangnoi Ayutthaya

25 025 19 0 58 Wangchula Wangnoi Ayutthaya

26 026 19 3 68 Wangchula Wangnoi Ayutthaya

27 027 18 1 28 Wangchula Wangnoi Ayutthaya

28 028 48 2 94 Wangchula Wangnoi Ayutthaya 29 029 2 0 33 Wangchula Wangnoi Ayutthaya 30 030 2 0 0 Wangchula Wangnoi Ayutthaya 31 031 2 0 0 Wangchula Wangnoi Ayutthaya 32 032 2 0 66 Wangchula Wangnoi Ayutthaya 33 033 2 0 79 Wangchula Wangnoi Ayutthaya 34 034 2 0 0 Wangchula Wangnoi Ayutthaya

12 Area Location Land Owners (names are deleted for No. lots Sq. privacy and security purposes) Rai Ngarn Sub-district District Province wah 35 035 2 0 0 Wangchula Wangnoi Ayutthaya 36 036 2 0 0 Wangchula Wangnoi Ayutthaya 37 037 2 0 33 Wangchula Wangnoi Ayutthaya 38 038 46 1 42 Wangchula Wangnoi Ayutthaya

39 039 Wangnoi Ayutthaya 15 1 9 Wangchula Wangnoi Ayutthaya

40 040

6 0 69 Wangchula Wangnoi Ayutthaya

13 Area Location Land Owners (names are deleted for No. lots Sq. privacy and security purposes) Rai Ngarn Sub-district District Province wah

41 041 10 1 58 Wangchula Wangnoi Ayutthaya 42 042 39 3 17 Wangchula Wangnoi Ayutthaya 43 043 39 3 69 Wangchula Wangnoi Ayutthaya

44 044 9 3 92 Wangchula Wangnoi Ayutthaya

45 045 9 3 92 Wangchula Wangnoi Ayutthaya

46 046 99 0 54 Wangchula Wangnoi Ayutthaya

47 047 195 0 59 Wangchula Wangnoi Ayutthaya

48 048 23 0 0 Chemeab Wangnoi Ayutthaya 49 049 16 0 15 Chemeab Wangnoi Ayutthaya 50 050 16 0 15 Chemeab Wangnoi Ayutthaya 51 051 115 2 18 Chemeab Wangnoi Ayutthaya 52 052 38 2 6 Chemeab Wangnoi Ayutthaya

14 Area Location Land Owners (names are deleted for No. lots Sq. privacy and security purposes) Rai Ngarn Sub-district District Province wah 53 053 38 2 6 Chemeab Wangnoi Ayutthaya 54 054 38 2 6 Chemeab Wangnoi Ayutthaya 55 055 38 2 6 Chemeab Wangnoi Ayutthaya

56 056 38 2 6 Chemeab Wangnoi Ayutthaya

57 057 38 3 28 Chemeab Wangnoi Ayutthaya 58 058 27 3 17 Chemeab Wangnoi Ayutthaya 59 059 62 1 30 Chemeab Wangnoi Ayutthaya 60 060 48 3 92 Chemeab Wangnoi Ayutthaya 61 061 49 0 62 Chemeab Wangnoi Ayutthaya 62 062 49 1 37 Chemeab Wangnoi Ayutthaya

63 063 49 0 43 Chemeab Wangnoi Ayutthaya

64 064 71 0 30 Chemeab Wangnoi Ayutthaya 65 065 62 3 81 Chemeab Wangnoi Ayutthaya

66 066 Wangnoi Ayutthaya 37 3 66 Chemeab Wangnoi Ayutthaya

15 Area Location Land Owners (names are deleted for No. lots Sq. privacy and security purposes) Rai Ngarn Sub-district District Province wah

67 067

60 0 28 Chemeab Wangnoi Ayutthaya

68 068 90 0 18 Chemeab Wangnoi Ayutthaya

69 069

30 0 6 Chemeab Wangnoi Ayutthaya

70 070

30 0 6 Chemeab Wangnoi Ayutthaya

16 Area Location Land Owners (names are deleted for No. lots Sq. privacy and security purposes) Rai Ngarn Sub-district District Province wah

71 071 30 0 6 Chemeab Wangnoi Ayutthaya

72 072

37 3 66 Chemeab Wangnoi Ayutthaya

73 073 24 3 33 Chemeab Wangnoi Ayutthaya 74 074 24 3 33 Chemeab Wangnoi Ayutthaya

75 075 17 2 36 Chemeab Wangnoi Ayutthaya

76 076 17 2 89 Chemeab Wangnoi Ayutthaya 77 077 50 0 0 Chemeab Wangnoi Ayutthaya

78 078 30 1 97 Chemeab Wangnoi Ayutthaya

79 079 26 3 71 Chemeab Wangnoi Ayutthaya 80 080 2 2 48 Chemeab Wangnoi Ayutthaya 81 081 0 3 36 Chemeab Wangnoi Ayutthaya

17 Area Location Land Owners (names are deleted for No. lots Sq. privacy and security purposes) Rai Ngarn Sub-district District Province wah

82 082

5 0 37 Chemeab Wangnoi Ayutthaya

Local 83 083 27 2 40 Government Wangnoi Ayutthaya Lam Ta Sao Local 84 084 22 1 8 Government Wangnoi Ayutthaya Lam Ta Sao Local 85 085 7 0 52 Government Wangnoi Ayutthaya Lam Ta Sao Local 86 086 7 0 57 Government Wangnoi Ayutthaya Lam Ta Sao Local 87 087 7 0 48 Wangnoi Ayutthaya Government

18 Area Location Land Owners (names are deleted for No. lots Sq. privacy and security purposes) Rai Ngarn Sub-district District Province wah Lam Ta Sao Local 88 088 20 0 0 Government Wangnoi Ayutthaya Lam Ta Sao Local 89 089 9 1 30 Government Wangnoi Ayutthaya Lam Ta Sao Local 90 090 10 0 0 Government Wangnoi Ayutthaya Lam Ta Sao Local 91 091 10 0 45 Government Wangnoi Ayutthaya Lam Ta Sao

Local 92 092 36 0 93 Government Wangnoi Ayutthaya Lam Ta Sao

Local 93 093 34 0 75 Government Wangnoi Ayutthaya Lam Ta Sao

19 Area Location Land Owners (names are deleted for No. lots Sq. privacy and security purposes) Rai Ngarn Sub-district District Province wah Local 94 094 121 1 20 Government Wangnoi Ayutthaya Lam Ta Sao Local 95 095 26 3 59 Government Wangnoi Ayutthaya Lam Ta Sao Local 96 096 22 3 69 Government Wangnoi Ayutthaya Lam Ta Sao Local 97 097 7 1 27 Government Wangnoi Ayutthaya Lam Ta Sao

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