Environmental and Social Monitoring Report

Project No. 46122-003 Semestral Report September 2019

Maldives: Preparing Outer Islands for Sustainable Energy Development Project

Sub-projects:  Design, Supply, Installation and Maintenance of Grid-tied Solar PV- diesel Hybrid Power Generation Plant in 5 Pilot Islands (POISED 001)  Design, Supply, Installation and Maintenance of Generator and Grid Infrastructure in 5 Pilot Islands of Maldives (POISED 002)  Design, Supply and Installation of 8MW of Diesel Generator in Male’ Capital City of Maldives (POISED 003)  Design, Supply, Installation and Maintenance of Grid-tied Solar PV- diesel Hybrid Power Generation Plant and Generator and Grid Infrastructure in HA Atoll (POISED 004)  Design, Supply, Installation and Maintenance of Grid-tied Solar PV- diesel Hybrid Power Generation Plant and Generator and Grid Infrastructure in HDh Atoll (POISED 005)  Design, Supply, Installation and Maintenance of Grid-tied Solar PV- diesel Hybrid Power Generation Plant and Generator and Grid Infrastructure in Sh & N Atoll (POISED 006)

Prepared by the Ministry of Environment and Energy for the Ministry of Finance and Treasury, Republic of Maldives and the Asian Development Bank.

This environmental and social safeguard monitoring report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature.

In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Environmental and Social Safeguard Monitoring Report

Project Number: 46122 (AUGUST 2014) Reporting Period: January - June 2019 Date: September 2019

Sub-projects:  Design, Supply, Installation & Maintenance of grid-tied solar PV-diesel hybrid power generation plant in 5 Pilot Islands (POISED 001)  Design, Supply, Installation & Maintenance of Generator & Grid Infrastructure in 5 Pilot Islands of Maldives (POISED 002)  Design, Supply and Installation of 8MW of Diesel Generator in Male’ Capital City of Maldives (POISED 003)  Design, Supply, Installation & Maintenance of grid-tied solar PV-diesel hybrid power generation plant and Generator & Grid Infrastructure in HA Atoll (POISED 004)  Design, Supply, Installation & Maintenance of grid-tied solar PV-diesel hybrid power generation plant and Generator & Grid Infrastructure in HDh Atoll (POISED 005)  Design, Supply, Installation & Maintenance of grid-tied solar PV-diesel hybrid power generation plant and Generator & Grid Infrastructure in Sh & N Atoll (POISED 006)

Prepared by:

Preparing Outer Islands for Sustainable Energy Development (POISED) Project, Ministry of Environment and Energy, Green Building, Handhuvaree Hingun, Maafannu, Male', 20392, Republic of Maldives.

Prepared for the Ministry of Finance and Treasury and the Asian Development Bank

This environmental and social safeguard monitoring report is a document of the borrower and made publicly available in accordance with ADB’s Public Communications Policy 2011 and the Safeguard Policy Statement 2009. The views expressed herein do not necessarily represent those of ADB’s Board of Directors, Management, or staff.

Table of Contents List of Abbreviations ...... 3 Executive Summary ...... 4 1. Introduction ...... 5 1.1. Scope of the report ...... 5 1.2. Brief Project Description ...... 5 1.3. Scope of the project ...... 7 2. Project Status ...... 8 2.1. Implementation Schedule ...... 8 2.2. Status of Project Implementation ...... 9 2.3. Project Monitoring ...... 13 3. Environmental safeguards compliance ...... 13 3.1. Compliance to National Regulations ...... 13 3.2. Compliance to Environmental Covenants from the ADB Loan Agreement ...... 15 3.3. Compliance to Environmental Management Plan ...... 16 3.4. Safeguards Monitoring Results and Unanticipated Impacts ...... 20 4. Social safeguards compliance ...... 20 4.1. Compliance with Legal and Policy Requirements ...... 21 4.2. Compliance with Social Safeguard Covenants ...... 21 4.3. Compliance with Resettlement Plan Requirements ...... 22 5. Implementation of the Grievance Redress Mechanism ...... 23 5.1. Grievance Redress Mechanism ...... 23 5.2. Status of Implementation of the GRM ...... 23 6. Stakeholder Engagement ...... 23 6.1. Stakeholder Engagement Process ...... 23 6.2. Consultations ...... 24 7. Conclusion ...... 24

List of Abbreviations

ADB Asian Development Bank CC City Council dB decibel EA Executing Agency EARF Environmental Assessment and Review Framework EIA Environment Impact Assessment EIB European Investment Bank EMP Environment Management Plan EPP Environment Protection and Preservation GRM Grievance Redress Mechanism IC Island Council IEE Initial Environmental Examination ME Ministry of Environment MOF Ministry of Finance NEAP National Environmental Action Plan NGO non-government organisation PIU Project Implementation Units PMU Project Management Unit POISED Preparing Outer Islands for Sustainable Energy Development PTA Parent Teacher Association PV Photovoltaic RE Renewable Energy RF Resettlement Framework RP Resettlement Plan SPS Social Protection Safeguards STELCO State Electric Company WDC Womens development Committee

Executive Summary

The investments under the Preparing Outer Islands for Sustainable Energy Development (POISED) project are broadly in the areas of renewable energy-based electricity generation and energy efficiency improvements at the generation and distribution of electricity. Hence, the project constructs and operates hybrid energy systems that include solar power generation units (on ground and roof-top) with a total capacity of 20888 kWp and 40170 kW diesel generations on about 160 islands. As proposed in the project document a phased-out intervention strategy has been undertaken in the implementation of the project. In the first Phase, the pilot phase of the POISED, five Outer Islands were selected as pilot islands namely: B. Goidhoo, Lh. Kurendhoo, Th. Buruni, Ga. Villingili and Hithadhoo of the Addu. In addition, this reporting period include the Phase 2B, 14 islands of HA. Atoll, Phase 3A, 26 islands in Shaviyani and Noonu Atolls and the 8MW diesel generator in Male’ city.

The 8MW diesel generator set in Male, the PV hybrid systems in all 5 pilot islands and 10 islands of Haa Alif are currently in operation. and currently maintenance support work is ongoing if issues arise. No additional work was carried out in the remaining 4 powerhouses of Phase 2B in Haa Alif due to the unavailability of powerhouses. Physical on-site construction work in Shaviyani and Noonu islands are ongoing and major works have been completed in most islands. The remaining work mainly includes establishing the battery and EMS systems.

Performance monitoring has been made continuously in order to align implementation of subproject activities with the objectives of ADB's SPS 2009 and laws and regulations of Maldives and attended accordingly whenever and wherever complaints and issues are raised. No major issues arose during the reporting period.

1. Introduction

1.1. Scope of the report

This report provides status of implementation and the processes involved to keep environmental and social safeguards compliance during the implementation of 5 subprojects of POISED, which are:

 Design, supply, installation & maintenance of grid-tied solar PV-diesel hybrid power generation plant in 5 pilot islands; B. Goidhoo, Lh. Kurendhoo, Th. Buruni, GA. Villingili and S. Hithadhoo (POISED 001)  Design, supply, installation & maintenance of generator & grid infrastructure in 5 pilot islands of Maldives; B. Goidhoo, Lh. Kurendhoo, Th. Buruni, GA. Villingili and S. Hithadhoo (POISED 002)  Design, Supply and Installation of 8MW of Diesel Generator in Male’ Capital City of Maldives (POISED 003)  Design, supply, installation & maintenance of grid-tied solar PV-diesel hybrid power generation plant and generator & grid Infrastructure in HA Atoll (POISED 004)  Design, supply, installation & maintenance of grid-tied solar PV-diesel hybrid power generation plant and generator & grid Infrastructure in HDh Atoll (POISED 005)  Design, supply, installation & maintenance of grid-tied solar PV-diesel hybrid power generation plant and generator & grid Infrastructure in Sh & N Atolls (POISED 006)

1.2. Brief Project Description

The Maldives, located 750 km southwest of Sri Lanka, is an archipelago consisting of 26 atolls, 1192 islands with a total land area of about 300 sq. km. About two thirds of the country’s population live on the outer islands, about 190 islands. The Maldives has about 100 MW of installed diesel generation capacity on the inhabited islands and another 100 MW on the tourism islands. While the Maldives has the unique distinction of being the first country with 100% access to electricity, this achievement has come at a cost. Given the geographic location of islands, each island is electrified with its own diesel-powered mini grid system resulting in expensive and not very reliable supply. The cost of diesel power is unaffordable at 30-70 cents/kWh and requires government subsidies in excess of $50 million annually (POISED Project Administration Manual, Ministry of Environment and Energy, 2014). Electricity sector subsidies are also one of the identified areas for government expenditure

management. In 2012, Maldives spent over $470 million for oil imports of which fuel imports for electricity generation contributes significantly.1 The 100% diesel dependence of Maldives also makes its carbon emissions per unit of electricity among the highest in the region.

The Maldives has significant renewable energy resources namely solar and in some pockets wind energy. Energy sector studies reveal that energy generation based on renewable energy and fossil fuel hybrids would be significantly lower compared to existing options. The transition to renewable energy-based systems has sound economic rationale. The Government’s effort to increase electricity production from indigenous sources, including solar and wind power, to enhance energy security will reduce the pressure on the balance of payments and improve the fiscal position. The Government has initiated two programs – one for the Male region to replace base load generation with renewable energy and the other on the Outer Islands to replace existing diesel-based generation with renewable energy.

The POISED Project is aligned to ADB’s Strategy 2020 of supporting sustainable energy growth, Energy Policy 2009 and is a part of the Maldives COBP for 2013-2015. Based on the government’s investment plan for the outer islands and the characteristics of the electricity systems, a sector lending approach would support the transition of those islands that meet the investment criteria. The project would transform the existing mini grids on the outer islands through physical investments in renewable energy, energy management and control systems, and energy storage and distribution networks. The private sector would have a role in supporting the renewable energy investments in identified outer islands.

The investments under the project are broadly in the areas of renewable energy-based electricity generation and energy efficiency improvements at the generation and distribution of electricity. The executing agency will be the Ministry of Finance and Treasury (MOFT). A Project Management Unit (PMU) comprising the officials from Ministry of Environment and Energy (MEE), FENAKA and STELCO has been setup for coordination of activities under the project. The implementing agencies include MEE, FENAKA and STELCO. The PMU is strengthened with external experts in the areas of finance, procurement, contract management, renewable energy (RE) and Solar-Diesel hybrid system. Project Implementation Units (PIU) are also established in FENAKA and STELCO to assist in preparing an overall implementation plan, contract packing and annual budgets.

1 The Maldives is considered one of the most oil vulnerable countries with oil imports close to 31% of GDP in 2012. (Maldives Energy Outlook 2013 by Ministry of Environment and Energy) 6

1.3. Scope of the project

The project components and outputs will be: (i) development of RE ready mini grid systems for outer islands, (ii) capacity enhancement of PMU, STELCO and FENAKA to implement RE mini grid projects. Under this RE project, the initial plan was to cover almost 148 islands of FENAKA and 33 islands of STELCO. However, the project is anticipating to cover 160 islands of both FENAKA and STELCO under the available funds of the POISED.

2. Project Status

2.1. Implementation Schedule

POISED Project Implementation Schedule 2015 2016 2017 2018 2019 No of JFMAMJJASONDJFMAMJJASONDJFMAMJJASONDJFMAMJJASONDJFM AMJJASOND Islands Pilot Iislands (Phase 1) 8

STELCO 8MW Diesel (Phase 2c) 1

HA (Phase 2b) 14

HDh (Phase 2a) 13

Sh (Phase 3a) 13 N (Phase 3a) 13

AA (Phase 3b) 8 K (phase 3b) 4 Adh (Phase 3b) 10 V (Phase 3b) 5 Lh (Phase 3b) 3

R (Phase 4A) 15 B (Phase 4A) 13

M (Phase 4b) 8 F (Phase 4b) 5 Dh (Phase 4b) 6

Stages of implementation Survey Feasibility & Bid preparation Tendering process Evaluation Implementation Figure 1. The planned implementation schedule for the POISED sub-projects

2.2. Status of Project Implementation

Table 1 gives brief status of overall implementation of the POISED project as of 31st July 2019. The progress of implementation is also shown in Figure 2, where the area shaded in black indicates completion status.

Table 1. Status of Overall Implementation of the POISED Project (as of 31st July 2019)

Major components/activities Status

Established (Hired Project Manager for POISED Project (POISED 001-OS), Technical Expert Local (POISED S- 120330), Environment Specialist (POISED S-120769; S- 132820), Social Expert (Gender and Community Development) (POISED S-120329), Technical Consultancy Services Contract (POISED 001-TC), IT & Financing Consultant’s Services PMU (POISED 002-TC), Senior Advisor (JFJCM) (018303)), Solar PV Specialist (JFJCM) (S-134522), Procurement Specialist (JFJCM) (S-134524), Asset Valuation Consultant’s Services (POISED 003-TC), Addu Atoll battery installation (S-134525) consultant was contracted but consultant was not able to start work due to health issues and the contract was cancelled in June and was decided to re-advertise. Contract signed on 22nd October 2015. Installation work has Design, Supply, Installation & been completed and commissioned in the last reporting period Maintenance of grid-tied solar PV- of July to December 2017. Rectification of roof leakage issues diesel hybrid power generation plant in Addu was completed during this reporting period. EMS in 5 Pilot Islands (POISED 001) training and monitoring of sites was continued and project was closed in September 2018. Design, Supply, Installation & Contract signed on 25th October 2015. Installation work has Maintenance of Generator & Grid been completed and commissioned in the last reporting period Infrastructure in 5 Pilot Islands of of July to December 2017. Project was closed in September Maldives (POISED 002) 2018. Design, Supply and Installation of Contract signed on 17th April 2016. Installation work is 8MW of Diesel Generator in Male’ completed and commissioned. No work was carried out on this Capital City of Maldives (POISED during this reporting period. 003) Design, Supply, Installation & - Field survey completed Maintenance of grid-tied solar PV- - Feasibility study completed and report formulated on 27th diesel hybrid power generation plant July 2016. and Generator & Grid Infrastructure in - Preparation of tender document HDh Atoll - Tendered published on 11th July 2016 - Pre-bid meeting held on 1st August 2016 - Bid submitted on 26th September 2016. 9 parties submitted bid documents. - Bid evaluation process completed - Contract awarded and signed on 18th May 2017 and 24th May 2017, respectively. - Conducted technical survey for detail drawing

- Prepared and submitted detailed design - Advance payment is not made yet waiting for EIB to process the required procedures - Work has not been commenced as the EIB loan is not effective. - PMU has been in negotiation with EIB on progressing the loan effectiveness. No further changes in status occurred during the reporting period. Design, Supply, Installation & - Feasibility study conducted and report formulated on 1st Maintenance of grid-tied solar PV- March 2016. diesel hybrid power generation plant - Preparation of tender document and Generator & Grid Infrastructure in - Tendered published on 30th August 2016 HA Atoll - Pre-bid meeting held on 19th September 2016 - bid submitted on 26th October 2016. - Bid evaluation process completed - Contract awarded and signed on 27th April 2017 and 30th April 2017, respectively. - Conducted technical survey - Prepared and submitted detailed design - Advanced payment made on 18th September 2017 - Detailed designs of systems were completed and approved for all islands. - Project construction work completed with 10 commissioned islands out of 14 while the rest of the islands are partially completed due to unavailability of powerhouse. Contractors will continue to support defect and maintenance. - Batteries in 6 islands were replaced by the manufacturer (LG) due to manufacturing defects. - The powerhouses for the islands Uligamu, Vashafaru, Thakandhoo and Maarandhoo have not been completed by FENAKA and hence, the remaining work needed in these powerhouses could not be done during this reporting period. Design, Supply, Installation & - Feasibility study conducted and formulated report on 1st Maintenance of grid-tied solar PV- March 2016. diesel hybrid power generation plant - Preparation of tender document is in progress and Generator & Grid Infrastructure in - Bid submitted on 3rd April 2017 Sh & N Atolls - Bid evaluation process completed and contract with winning party was signed on 6th December 2017. - Detailed designs of the systems were completed and approved in 26 islands. - Work is in progress in all 26 islands. All materials required for project are supplied to the sites - All necessary civil works has been in 17 of the islands. Overall 82% has been completed. - PV installation has been completed in 11 islands. Over 90% of work has been completed in 9 islands and over 70% work has been completed in the remaining 6 islands. - Grid upgrading work has been 77% completed with work being completed 100% in 13 islands - Installation of diesel genesets have been completed 72%

- Installation of battery systems have been completed in 20 islands Design, Supply, Installation & - Feasibility study conducted and report formulated Maintenance of grid-tied solar PV- - PV hybrid installation is to be done only in Olhuvelifushi in diesel hybrid power generation plant Lh Atoll. The extra 200 KWp of PV and extra equipment and Generator & Grid Infrastructure in from Kurendhoo pilot island is to be transferred to Lh Atoll Olhuvelifushi. This will be continued by FENAKA under PMU supervision. Design, Supply, Installation & - Feasibility study has been completed and approved by Maintenance of grid-tied solar PV- EIB diesel hybrid power generation plant - Tendering process has been on hold waiting on EIB loan and Generator & Grid Infrastructure in effectiveness R & B Atolls Design, Supply, Installation & - Feasibility study has been completed and approved by Maintenance of grid-tied solar PV- EIB diesel hybrid power generation plant - Tendering process has been on hold waiting on EIB loan and Generator & Grid Infrastructure in effectiveness K, AA, ADh, V Atolls and S. Hulhumeedhoo island Design, Supply, Installation & - Technical surveys conducted and initial feasibility report Maintenance of grid-tied solar PV- completed in November 2016. diesel hybrid power generation plant - This phase has been removed from POISED as IDB loan and Generator & Grid Infrastructure in component has been withdrawn by MoFT. GA and GDh. Atolls Design, Supply, Installation & - Technical survey conducted in Meemu, Faafu & Dhaalu Maintenance of grid-tied solar PV- atolls. diesel hybrid power generation plant - The feasibility report has been completed. and Generator & Grid Infrastructure in - Further work is on hold awaiting EIB loan effectiveness. M, F & Dh Atolls Procurement of design, supply and - Contract was signed on 18th December 2018. installation of EMS and BESS for PV- diesel hybrid system in Addu City

POISED Project Implementation Progress 2015 2016 2017 2018 2019 2020 2021 No of JFMAMJJASONDJFMAMJJASONDJFMAMJJASONDJFMAMJJASONDJFM AMJJASONDJFMAMJJASONDJFMAMJJASOND Islands 9838473.43

Pilot Iislands (Phase 1) - PV Component 5

Pilot Iislands (Phase 1) - Grid Component 5

STELCO 8MW Diesel (Phase 2c) 1

HA (Phase 2b) 14

HDh (Phase 2a) 13

Sh & N (Phase 3a) 26

K, AA, Adh, V, Hulhumeedhoo (Phase 3b) 24

R&B (Phase 4A) 25

Addu Battery and EMS 1

M, F, & Dh (Phase 4b) 19

Th (Phase 5) 12 Stages of implementation Survey Tendering process Implementation Commissioning Operation & maintenance Feasibility & Bid preperation Evaluation Completion On-hold

Figure 2. Progress of POISED sub-projects implementation, 31st June 2019

2.3. Project Monitoring

Regular monitoring is implemented by the PMU and PIU. Daily routine supervision and monitoring are also conducted by the FENAKA staff from respective branch of the sub-project sites. The main objective of this regular supervision and monitoring is to ensure that the project activities are carried out in line with the ADB’s SPS 2009 and the country’s safeguard system. The project implementation plan is being made to avoid or mitigate adverse impacts of projects on environment and the people living around the sites. Hence, project supervision and monitoring undertakes all required assurance. Viber groups have been made for each atoll separately where the FENAKA staff from respective islands can directly communicate with PMU and FENAKA staff in Male’ to more quickly address and resolve any issues that arise.

3. Environmental safeguards compliance

3.1. Compliance to National Regulations

The project loan agreement requires the Executing Agency to implement the project in compliance with all agreed relevant provisions stipulated in the environmental documentation of the project, for example: Initial Environmental Examination (IEE), Environmental Assessment and Review Framework (EARF), ADB’s Environmental Policy (2002), Environmental Covenants as stipulated in the Loan Agreement, EMMP applicable to the subprojects.

The IEE and EARF prepared for the project had identified the environmental regulatory requirements of the project undertaken as per the country’s laws and regulations, especially the Environment Protection and Preservation Act of Maldives (4/93), Environmental Damage Liabilities Regulation 2011, National Environmental Action Plan III (NEAP III) and Environmental Impact Assessment Regulation 2012. The Environmental regulatory requirements of the project with the compliance status are summarized and presented in

Table 2.

Table 2. Summary of compliance with national environmental regulatory requirements

Relevant government Compliance requirement Compliance status notifications and under the regulations regulations 1 EIA process, the legal - Conducted IEE and IEE approved requirement as stipulated in submitted to the EPA for EPP Act (4/93) Article 5 and approval according to EIA Regulation 2012 2 Managing and disposing of - Use the Environmental The conditions in the approval wastes, oil and gases as Management Plan for this for EIA for powerhouses are stipulated in EPP Act (4/93) project which specifies how followed in the disposal of the wastes, oil and gases wastes and oils. These are generated by the project shall long term storage and re- be disposed exporting. 3 Management, handling and - Ensure safe disposal of Subprojects have not been disposal of hazardous waste chemical, hazardous and handling anything as such so according to regulations and industrial waste far standards as stipulated in EPP Act (4/93) 4 Safe disposal of chemical, - Ensure safe disposal of Subprojects have not been hazardous and industrial chemical, hazardous and handling anything as such so waste industrial waste far 5 Protecting protected areas - Avoid protected areas and Sites had been selected and natural reserves natural reserves carefully considering all the requirements therefore, no project site is located at any protected area or natural reserves. 6 Uprooting, removal, cutting - Avoid/minimise large- scale Some trimming of tree and transportation of palms uprooting, removal, cutting branches were carried out at and trees as in the Regulation and transportation of palms sites. Routine trimming has on Uprooting, Cutting and and trees and include in the been done as needed to Transportation of Palms and EIA minimise shading of PV Trees 2006 and Regulations - Conserve and protect old panels. of Conservation of Old Trees trees which are rare and are Some very minor bushes and and National Biodiversity in extinct at island, atoll and ground covering were cleared 2002 Strategy and Action national level from the site in B. Goidhoo Plan 2002 - Foster community and Lh. Kurendhoo. These participation, ownership and are not owned by any person support for biodiversity and grows abundantly in the conservation area.

No trees were removed or cut during ground mounting in 14

Baarah, Hoarafushi and Utheemu in in Haa Alif Atoll.

A site was cleared in Sh. Narudhoo for ground mounting. A few coconut trees and ground cover were mainly removed. The site is the area identified by the Island Council to build their new powerhouse. Hence, the impacts of clearing are not directly related to this project. 7 Safe disposal of solid waste - Ensure safe disposal of solid Waste disposal has been and encourage recycling and waste and encourage done accordingly as directed reduction of waste generated recycling and reduction of by the councils to allocated as in the Waste Management waste generated areas Policy and Waste Regulations - Develop guidelines on waste 2013 management and disposal and advocate to enforce such guidelines through inter- sectoral collaboration - Encourage waste reduction, reuse, recycling and recover

3.2. Compliance to Environmental Covenants from the ADB Loan Agreement

MEE is implementing projects under loan agreement no: 46122 (AUGUST 2014). According to the loan agreement, EA has to ensure that subprojects are not located within protected areas, natural reserves and areas of cultural and historical importance should be avoided. The subprojects were designed after detailed field surveys to ensure strict compliance with the above conditions. No sensitive areas of cultural and historical importance are affected by the project activities and no sites located within protected area and natural reserves. The projects are being planned, designed and implemented in compliance to the other conditions of the loan agreement. Environment and its compliance status is summarized and presented in Table 3.

Table 3. Environmental Compliance Requirements as per Grant Agreement

Covenant Environmental compliance requirements Compliance status Sched. 4, The Recipient, FENAKA, and STELCO shall ensure that - Conducted detailed Para. 16 the preparation, design, construction, implementation, technical, social and operation and decommissioning of the Project and all environmental Project facilities comply with (a) all applicable laws and assessment prior to regulations of the Recipient relating to environment, design of the project and health and safety; (b) the Environmental Safeguards; complied with the plans and (c) all measures and requirements set forth in the

IEE, the EMP, the Environment Assessment Review - Regular monitoring has Framework and any corrective or preventative actions been conducted and set forth in a Safeguards Monitoring Report. corrective actions taken where needed. Sched. 4, The Recipient shall ensure or cause FENAKA and - - Bidding documents Para 21 STELCO to ensure that all bidding documents and contain the necessary contracts for Works contain provisions that require provisions. contractors to: (a) comply with the measures relevant to the contractor set forth in the IEE, and the EMP, and any corrective or preventative actions set forth in a Safeguards Monitoring Report; (b) make available a budget for all such environmental measures; (c) provide the Recipient with a written notice of any unanticipated environmental risks or impacts that arise during construction, implementation or operation of the Project that were not considered in the IEE and the EMP; (d) adequately record the condition of roads, agricultural land and other infrastructure prior to starting to transport materials and construction; and (e) reinstate pathways, other local infrastructure, and agricultural land to at least their pre-Project condition upon the completion of construction. Sched. 4, The Recipient, FENAKA and STELCO shall do the - Regular monitoring and Para 22 following: reporting is conducted (a) submit semiannual Safeguards Monitoring Reports to ADB and disclose relevant information from such reports to affected persons promptly upon submission; (b) if any unanticipated environmental risks and impacts arise during construction, implementation or operation of the Project that were not considered in the IEE and the EMP, promptly inform ADB of the occurrence of such risks or impacts, with detailed description of the event and proposed corrective action plan; (c) no later than 6 months after the Effective Date, engage qualified and experienced external experts or qualified NGOs under a selection process and terms of reference acceptable to ADB, to verify information produced through the Project monitoring process, and facilitate the carrying out of any verification activities by such external experts; and (d) report any actual or potential breach of compliance with the measures and requirements set forth in the EMP promptly after becoming aware of the breach.

3.3. Compliance to Environmental Management Plan The project physical activities during this reporting phase includes construction work in Sh and N islands. Civil works involving cement works, cable laying for grid upgradation and installation of PV panels, gensets, control panels, Battery System and EMS and testing of the hybrid system was carried out in Sh and N atolls. Most of the work does not involve much noise or

emissions as they require mainly manual labour. Cement mixing, and use of power tools such as drills for the civil works and installation of PV and gensets are the ones that create some noise. These noise measurements are given in

Table 4. The noise of these are of short durations and measurements were taken when the equipment was in operation.

All works associated with subprojects have been complied with ADB’s social and environmental safeguard policies and Maldives laws and regulations. The islands which are currently in operation are the 5 pilot islands and Haa Alif islands and the 8MW generator in Male’. There has been no incidences of occupational health and safety reported during this period. Similarly, clean-up of PV cells has not been needed. As noise and air quality measurements are to be measured once a year this will be reported in the next report.

Table 4. Environmental monitoring of construction work at Sh & N islands (January – June 2019)

Features Detail Jan Feb Mar Apr May Jun Type of work and islands Civil works D12, D13 D12, D13 D03, D06 C04, C05, C01, C14, C01, C03 where work was carried C07 D05, D14 out Grid upgrade C04, C16, C07, C14, C02, C07, C11, C02, C06 D08, D10 D11 D09, D10, C16, D02, D02, D05, D07 D11 D11 PV installation C02, C05, D13 C08, D12, D13 D12, D13 C08, D08, C08, D14 C10 D14 Gensets C01, C03, C16, D12 C04, C10, C11, C16, D03, D13 EMS BESS C02, C05, D03, D11, D15 C08, C10, D12, D13 C16, D08 Noise (db) during civil works 95, 99 96, 99 97, 98 97, 100, 92 101, 98, 87, 93, 95 (Qualitative assessment 94 during the monthly progress report during During PV 85, 78, 80 89 77, 83, 85 91, 86 79, 84, 91 90, 87 construction) installation

Air Project site during No visible emissions during construction activities. The cement mixer used during civil works (Qualitative assessment construction work and drills during PV installation and genset works are the only powered equipment being during the monthly used. progress report during construction) Occupational Health and Project Site None None None reported Safety reported reported *Refer to Appendix 1 for the list of island codes and Appendix 2 for noise level comparison

3.4. Safeguards Monitoring Results and Unanticipated Impacts

Details of the work carried out during this reporting period are given in Table 1. The construction works are monitored by FENAKA site supervisors in respective islands. In addition, monitoring trips are conducted by PMU. The ongoing construction works, do not involve use of large machineries which cause heavy noise pollution or emissions. The impacts noticed include minor noise disturbances during construction work, temporary inconveniences in accessing roads during trenching and disturbances due to increased vehicle movement for loading and unloading. There have been no reports of complaints from community regarding noise disturbances and emissions during these construction activities. The monitoring visits also verify that there are insignificant environmental impacts from construction work. Details of findings of monitoring visits are provided below in Table 5. Table 5. Monitoring visits to Sh and N (Jan – Jun 2019)

Dates Islands Visited Findings All islands in Sh 10-21 Gensets and control panels were not installed in islands where the Apr new powerhouses have not been built (Noomaraa, Narudhoo and Bilehfahi).

Other issues involved the need for extension of control rooms in 3 islands (Noomaraa, Narudhoo and Foakaidhoo). All islands in Noonu New powerhouse has not been built in Maalhendhoo, and Magoodhoo, hence no work has been carried out other than PV installation in Maalhendhoo. Other issues involved the need for extension of control rooms in 2 islands (Miladhoo and Magoodhoo).

4. Social safeguards compliance

Utmost attention is given while conducting the performance monitoring as to achieve the objectives of ADB's SPS 2009 with regard to social safeguards and involuntary resettlement. Hence, monitoring is made to observe the subprojects compliance with legal and policy requirements, social safeguard covenants, and resettlement plan requirements.

4.1. Compliance with Legal and Policy Requirements

The Social Safeguard parameters including Resettlement Framework (RF), land acquisition, eligibility and entitlements and compensations are set corresponding ADB’s SPS 2009 and Maldives laws and regulations. The purpose of regular performance monitoring is to assess potential environmental, health, safety and social impacts of the subproject activities and any interventions undertaken under the POISED project. This enables to enforce all elements of Social Safeguard parameters set in the project documents and ensures that they are conducted in compliance with the ADB’s SPS 2009 and Maldives laws and regulations. It was observed that no stakeholders or anyone from any of these subproject islands have formally lodged any complaint relating to any activity or any component implemented under the project being against or breached any law or regulation of the Maldives.

Clearing of vegetation for ground mounting was completed in Narudhoo. The area cleared was from the site allocated for building the new powerhouse in the island. Therefore, this is not a direct impact from the POISED project. The land is council land allocated in their land use plan for the new powerhouse. PV panels were installed on the roof top of government owned or FENAKA owned buildings in all other three islands with the permission of relevant agencies.

4.2. Compliance with Social Safeguard Covenants

The project activities were carried out as they align with social safeguard covenants and complying with ADB’s Social and Environmental Safeguards policy and the country’s laws and regulations. Meaningful consultations, pre and during project implementation, were conducted with subproject communities including women and Women Development Committees (WDCs), NGOs and individuals or youth from women and Women Development Committees and NGOs as appropriate. They were provided with opportunities to participate in information dissemination sessions. Particular attention was given to the needs of vulnerable groups and they will be provided with just and lawful compensation if they are affected from any of the project activities. Required information and documents are disclosed and additional consultations are conducted when needed. Table 6. Social Compliance Requirements as per Grant Agreement

Covenant Social compliance requirements Compliance status Sched. 4, The Recipient, shall ensure or cause STELCO and Have been complied Para. 17 FENAKA to ensure that all land and all rights-of-way required for the Project, each Subproject and all Project facilities are made available to the Works contractor in

accordance with the schedule agreed under the related Works contract and all land acquisition and resettlement activities are implemented in compliance with (a) all applicable laws and regulations of the Recipient relating to land acquisition and involuntary resettlement; (b) the Involuntary Resettlement Safeguards; (c) the RF; and (d) all measures and requirements set forth in the respective RP, and any corrective or preventative actions set forth in a Safeguards Monitoring Report. Sched. Without limiting the application of the Involuntary Have been complied 4, Para Resettlement Safeguards, the RF or the RP, the 18 Recipient shall ensure or cause STELCO and FENAKA to ensure that no physical or economic displacement takes place in connection with the Subprojects until: (a) compensation and other entitlements have been provided to affected people in accordance with the RP; and (b) a comprehensive income and livelihood restoration program has been established in accordance with the RP. Sched. The Recipient shall ensure that the Project does not N/A 4, Para have any indigenous people impact, within the meaning 19 of ADB’s SPS. In the event that the Project does have any such impact, the Recipient shall take all steps required to ensure that the Project complies with the applicable laws and regulations of the Recipient and with ADB’s SPS.; and (iii) the developed EMP with adequate budget is implemented for each subproject Sched. (a) submit semi-annual Safeguards Monitoring Reports Have been complied (all 4, Para to ADB and disclose relevant information from such past monitoring reports 22 reports to affected persons promptly upon submission; have been submitted to ADB)

4.3. Compliance with Resettlement Plan Requirements

State owned land and buildings are utilised for solar panel installation, hence, not required voluntary or involuntary resettlement process to be undertaken in any of the subproject sites. All Island Councils (ICs) and City Councils (CCs) and government agencies agreed to provide necessary land and building structures for the project. Pre-approvals were sought and obtained for utilisation of roofs and the land allocation was made in early consultation process. Therefore, no land acquisition dispute aroused in any of these five islands other than in Kurendhoo. It was not a dispute in Kurendhoo per se but it was a development priority issue as in their Island Development Plan due to the long time elapsed for the implementation of the project and materialisation of the project outcome. The allocated site has been occupied for other ongoing development project. There are no indigenous people or communities identified in Maldives. However, the Resettlement Framework (RF) prepared for the project will guide the preparation of other phases of the project.

5. Implementation of the Grievance Redress Mechanism

5.1. Grievance Redress Mechanism

As per the project document, a grievance redresses mechanism was established and all complaints and concerns raised by different stakeholders and members from communities of all five islands were attended in a timely manner. There were no concerns raised relating to resettlement and other social issues. Based on the experiences of the pilot phase, structural designs of the PV mounting were changed in the subsequent phases to avoid water leakage issues which had occurred in the pilot phase. The new contractors were advised to change the method for roof mounting.

5.2. Status of Implementation of the GRM

No complaints and concerns were raised during the implementation of the sub-projects in the reporting period.

6. Stakeholder Engagement

6.1. Stakeholder Engagement Process

All key stakeholders are engaged during the feasibility studies that were carried out in all 5 islands. In order to engage and increase stakeholder participation, the following key activities were conducted in all sites of the subprojects:

 Introduction of the POISED project to FENAKA branches, island councils, women and the community, students, teachers and parents;  Awareness sessions for women, students and parents on economising the electricity and energy efficiency, and importance of renewable energy and career guidance for the students;  Social Impact Assessment Survey: The household survey was carried out by a trained team from the respective island, including staff from FENAKA, Council, and staff from other government agencies covering two focus group discussions, including women and disadvantaged households.

The consultation process has been maintained as an ongoing dialogue with stakeholders such as councils, women, line ministries and agencies, FENAKA and STELCO. Key stakeholders dialogue has been maintained through regular technical and steering committee meetings. However, the PMU, PIU and contractor should conduct issue based meetings when needed.

6.2. Consultations

The Table 7 gives consultations and meetings are conducted during the reporting period

Table 7. Stakeholder consultations held during January - June 2019

Consultations/ Date Attendees Outcomes meetings conducted 1 Meetings held with 10 -14 PMU team, Staff of Updated the progress, FENAKA branches April 2019 FENAKA branches, identified issues and and relevant (School and health discussed how to stakeholders centers management if speed up the work (schools and needed), and Contractor health centers) in all 13 islands of N. atoll to discuss on the project progress and issues

2 Meetings held with 14 -19 PMU team, Staff of Updated the progress, FENAKA branches April 2019 FENAKA branches, identified issues and and relevant (School and health discussed how to stakeholders centers management if speed up the work (schools and needed), and Contractor health centers) in all 13 islands of Sh. atoll to discuss on the project progress and issues

7. Conclusion

The monitoring report confirms that the PV hybrid installation subprojects in 5 Pilot Islands, Haa Alif Atoll and Shaviyani and Noonu atolls and 8MW diesel generator in Male’ City, have

24 so far caused no negative environmental and social impacts. Implementation of activities are undertaken considering all the ADB’s Environmental and Social Safeguard policies and in line with Maldives laws and regulations and attended accordingly whenever and wherever complaints and issues are raised. Hence, attention is given to the possible extent towards the implementation of socio-environmental safeguards and all subprojects’ activities are implemented in compliance with laws and regulations of the country and social covenants of Loan Agreement.

Appendix 1: List of island codes Table 8. POISED islands of Haa Alif, Shaviyani and Noonu with Island codes

Islands Haa Alif Islands Shaviyani Islands Noonu

A01 - Thuraakunu C01 - Kanditheemu D02-Henbadhoo

A02 - Uligam C02-Noomaraa D03-Kendhikulhudhoo

A05 - Molhadhoo C03-Goidhoo D05-Maalhendhoo

A06 - Hoarafushi C04-Feydhoo D06-Kudafari

A07 - Ihavandhoo C05-Feevah D07-Landhoo

A08 - Kelaa C06-Bilehfahi D08-Maafaru

A09 - Vashafaru C07-Foakaidhoo D09-Lhohi

A10 - Dhidhoo C08-Narudhoo D10-Miladhoo

A11 - Filladhoo C10-Maroshi D11-Magoodhoo

A12 - Maarandhoo C11-Lhaimagu D12-Manadhoo

A13 - Thakandhoo C13-Komandoo D13-Holhudhoo

A14 - Utheemu C14-Maaungoodhoo D14-Fodhudhoo

A15 - Muraidhoo C16-Milandhoo D 15-Velidhoo

A16 - Baarah

Appendix 2: Noise level comparisons for Sound Meter

Table 9. Noise level comparisons from the Sound Meter

Noise level (db) Comparison

20 Leaves rustling

30 Whisper

40 Quiet library

50 Moderate rainfall

60 Normal conversations

70 Traffic, vacuums

80 Alarm clocks

90 Power tools

100 Snowmobiles

110 Concerts, car horns

120 Jet planes taking off