Environmental and Social Monitoring Report Maldives: Preparing Outer

Home , Addu City, Finey (Haa Dhaalu Atoll), Hulhumeedhoo, Nolhivaranfaru, Raa Atoll

Environmental and Social Monitoring Report

Project No. 46122-003 Semestral Report July 2020

Maldives: Preparing Outer Islands for Sustainable Energy Development Project

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 Safeguards Monitoring Report

Reporting Period January – June 2020 Date July 2020

Preparing Outer Islands for Sustainable Energy Development (POISED)

Prepared by the Ministry of Environment for the Asian Development Bank

This environmental 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.

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 O&M Operation and maintenance 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 Women development Committee

Table of Contents EXECUTIVE SUMMARY ...... 4 1.0 Introduction ...... 6 1.1 Brief Project Description ...... 6 1.2 Project Progress Status and Implementation Schedule ...... 9 2.0 Compliance to National Regulations and International Agreements ...... 18 3.0 Compliance to Environmental Covenants from the ADB Loan Agreement ...... 20 4.0 Compliance to Project Administration Manual (PAM) ...... 21 5.0 Compliance to Contract ...... 22 6.0 Compliance to Environmental Management Plan ...... 23 7.0 Environmental Supervision and Monitoring Results ...... 24 7.1 Environmental Supervision ...... 24 7.2 Quantitative Environmental Monitoring ...... 25 7.3 Pollution Control Monitoring ...... 25 7.4 Occupational and Community Health and Safety Monitoring ...... 25 8.0 Social Safeguards Compliance ...... 25 9.0 Compliance with Legal and Policy Requirements ...... 26 9.1 Compliance with Social Safeguard Covenants ...... 26 9.2 Compliance with Resettlement Plan Requirements ...... 27 10.0 Meaningful Consultation and Grievance Redress ...... 28 11.0 Conclusions and Recommendations ...... 29

EXECUTIVE SUMMARY

All on-site activities under the current contracts have been completed and is at the O&M stage except for Addu battery and EMS installation. Work on EIB subprojects also have been able to commence since EIB loan was made effective on 21st November 2019. However, due to the long delay since the baseline information has been collected revising of feasibility studies needed to be done for these islands. This included the contract for Haa Dhaalu which was made in May 2017. Apart from visits in January to collect current on-site data, most of the work for this reporting period has been desk-based to review feasibility and designs of the hybrid systems.

The COVID19 pandemic has further hindered on-site work and work at Addu also had to be stopped as the Supervision Engineer had to return home due to the start of the pandemic. With community spread in the Greater Male’ region travel to and from Male’ had been restricted since March and a lockdown of the area was implemented in April. Restrictions are in the process of being lifted with travel to outer islands possible and international borders opened in July depending on the situation. However, there would remain a 14 days quarantine period for all visiting outer islands.

Due to the restricted on-site work and travel in this reporting period no major environmental and social concerns arose and no major site visits were made during the reporting period. However, site supervisions were made through FENAKA branch staff in Shiviyani and Noonu atolls as needed.

Project Name Executing Agency Ministry of Finance Implementing Agency Ministry of Environment Environment Safeguards B Categorization Environment Safeguards IEE/EMP Documentation Project Stage Obtained Haa Alifu, Shaviyani & Noonu – O&M Haa Dhaalu – Pre-Construction 8MW Genset in Male’ – Raa, Baa, Meemu, Faafu & Thaa – Design (feasibility revision) Addu Battery - Construction Design/Pre-Construction/Construction/Commissioning/O&M Detailed Design Required Post- Yes, detailed designs of all completed subprojects were Approval approved and approval process of detailed design of HDh subproject is in progress Contract(s) Awarded Yes, as of 30 June 2020, 24 contracts awarded. Bidding Document(s) Include Yes for all completed subprojects. EMP Cleared by ADB Contract(s) Awarded Include Yes for all completed subprojects. EMP Cleared by ADB National Environment, Health Yes and Safety Clearance(s) Obtained Contractor(s) Given Access to Yes Site

Construction Progress (%) Work in 5 pilot islands and 3 atolls completed. Unanticipated Impacts Unanticipated changes needed to make to the design and including Change of Scope or scope of the HDh project due to the delay happened in EIB Design loan effectiveness Number of Site Inspections and No Audits Undertaken by Environment Safeguards Staff in Reporting Period Corrective Action Required No from Previous Reporting Period Outstanding Corrective Action No this Reporting Period Non-Compliances Recorded No this Reporting Period Corrective Action Required No Number of Health and Safety NA Incidents GRM Functional Yes Number of Unresolved None Grievances from Prior Reporting Period Number of Grievances None Received in Reporting Period Number of Grievances None Resolved this Reporting Period Number of Grievances Still None Outstanding Number of Grievances referred None to Court of Law Number of Grievances referred None to the Accountability Mechanism

1.0 Introduction

1.1 Brief Project Description

The project ‘Preparing Outer Islands for Sustainable Energy Development (POISED)’ is implemented in the Maldives by the Ministry of Environment and executed by the Ministry of Finance. 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. 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). The high 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 (RE) resources namely solar and in some pockets wind energy. The POISED project is among one of the initiatives by the government to transition to renewable energy-based systems in order to achieve its energy sector target of installing RE technologies at least up to 70% of daily peak load in all inhabited islands by end of 2030. The POISED project is aimed at cleaner and more energy efficient energy generation in the Maldives.

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 main outputs of the POISED project are 1) develop solar PV-hybrid systems, 2) increase efficiency of grid and generation system and 3) develop local capacity in 160 inhabited outer islands of the country. This involves mainly installation of PV panels on rooftops and where

6 such roofs are not available ground mounting will be done in allocated areas. Other works include replacing inefficient generators and grid systems. The physical works in the project are not heavy and are not likely to have adverse environmental or social impacts. Adverse impacts will be site-specific and few if any irreversible impacts and can be mitigated with appropriate measures. Hence, activities under the POISED and its sub-projects are categorized as B in the ADB environmental safeguards. At the national level, under the Environmental Impact Assessment (EIA) regulation, the project is considered to be having minimal adverse effects and having positive impacts that outweigh the adverse. Hence for both ADB and national compliance an Initial Environmental Examination (IEE) and an Environmental Management Plan (EMP) is required.

The executing agency will be the Ministry of Finance (MOF) and the implementing agency is the Ministry of Environment (MoE). MoE is supported by FENAKA and STELCO in the implementation. 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 PMU is strengthened with external experts in the areas of finance, procurement, contract management, renewable energy (RE), Solar-Diesel hybrid system, social, gender and environment. Project Implementation Units (PIU) are also established in FENAKA and STELCO to assist in preparing an overall implementation plan, contract packing and annual budgets.

Figure 1 shows the initial implementation schedule of the POISED PROJECT.

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. Initial Implementation Schedule for POISED sub-projects

1.2 Project Progress Status and Implementation Schedule

The ADB components of the POISED project are going ahead with good progress. These include the sub-projects 5 pilot islands, 8MW diesel generator installation in Male’ and installation of PV and upgrading of power generation systems in islands of Haa Alifu, Shaviyani and Noonu. All construction work has been completed and commissioned. The pilot islands and STELCO sub-projects have been handed over to FENAKA and STELCO respectively. Haa Alifu, Shaviyani and Noonu islands are in O&M stage during this operational period.

Work on the EIB sub-projects have been delayed due to the EIB loan not being effective. The loan was made effective on 21st November 2019. Since then work has commenced to revise the feasibility studies of islands in Haa Dhaalu, Raa, Baa, Faafu, Meemu, Dhaalu, Kaafu, Alifu Alifu, Alifu Dhaalu, Vaavu and Seenu HUlhumeedhoo, which were developed earlier in the project. The Haa Dhaalu islands have already been contracted out in April 2017. Therefore, in this reporting period, after collecting updated information and reviewing feasibility and design negotiations were held with contractor to review design and scope of the work. For the other islands data collection and revising of feasibility is in progress during the reporting period.

Additional funding was received and utilised for islands in Thaa atoll. Feasibility studies have been done and currently preparation of bids is in progress for Thaa atoll. Work on the Addu battery and EMS is also ongoing. Work in Addu has to be suspended since March 2020 as the Supervision Engineer had to leave the country amidst the COVID19 situation.

The COVID19 pandemic has posed many unanticipated challenges to the implementation of the sub-projects at island level. With the first non-imported local case occurring on 15th April 2020, in Male’, widespread community transmission has occurred, especially among the migrant worker populations. A 24-hr lockdown of the Greater Male’ Region was imposed by the Government on 15th April. Movement of people was restricted to necessary needs and with authorization of permits issued by Maldives Police Services under guidelines by the national Health Protection Agency (HPA). Though a few cases were identified in outer islands

due to initial travelling this has been mitigated and further spread to outer islands have been prevented by travel restrictions and establishment of stringent island level quarantine and other precautionary measures by Island COVID Taskforces. With a better understanding and hold of the COVID situation in the Maldives as well as need for economic activities to resume some levies on the lockdown were trialed on 28th May 2020 and further restrictions on movement within Greater Male was lifted end of June 2020. Government offices and the borders are planned to be opened in July. Travel to and from Male’ is restricted. Any persons going to outer islands have to be quarantined for 14 days. However, the situation is still being monitored and measures taken will be updated with changes in the situation.

Impact of Work on POISED from COVID19

Since the lockdown all PMU staff has been working from home and due to travel restrictions no PMU staff is at sites. All work has been restricted to desk-based work. All work by international consults (revising of feasibility studies and system designs) are being done through online communication. Any site work can be done once travel and border restrictions are lifted by the Government of Maldives.

The on-site work is mostly implemented, by Contractors and local subcontractors, under the advice of the PMU and close supervision of the relevant utilities company of the island. All work on the contracted phases have been completed in all islands except in Addu where the battery system is being set up. The Supervision Engineer in Addu has gone back to his country due to COVID 19 and is awaiting to return once travel restrictions are lifted and travel is possible. In the other atolls (HA, Sh and N) only maintenance work is being carried out on a need to basis. This work has also been mainly subcontracted to locals and hence, bringing overseas workers are not required. All on-site work has been suspended till ease of lockdown measures. The next Phase H Dh (13 islands) work will commence once COVID travel restrictions are eased.

The project implementation status as of 30th June 2020 is shown in Figure 2.

Project Target Progress Status Percent Remarks Component/Stage Completion {not yet started; Completed Date {Revised ongoing; completed}

Target Date, if delayed} As this was the Design, supply, first pilot phase installation & some delays maintenance of occurred. The generator & grid main delays in infrastructure in 5 Work completed project closing pilot islands of and Completed 100% included Maldives; Baa. commissioned rectifying roof Goidhoo, in October 2017 leakage issues in Lhaviyani. but project some of the Kurendhoo, Thaa. closed in Sep islands. EMS Buruni, Gaafu 2018 training was Alifu. Villingili and conducted and Seenu. Hithadhoo monitoring of (POISED 001) sites was continued by Contract award contractor till (POISED 001) to September 2018 China GEO - CCE when the project OASIS Joint was closed. Venture, China on 22nd October 2015

Construction (site clearance, earthworks, civil works, installation of PV panels, battery)

Design, supply, Work completed As this was the installation & and first pilot phase maintenance of commissioned some delays generator & grid in October 2017 occurred. The infrastructure in 5 but project main delays in pilot islands of closed in Sep project closing Maldives; Baa. 2018 Completed 100% included Goidhoo, rectifying roof Lhaviyani. leakage issues in Kurendhoo, Thaa. some of the Buruni, Gaafu islands. EMS Alifu. Villingili and training was Seenu. Hithadhoo conducted and (POISED 002) monitoring of sites was Contract award continued by (POISED 002) to contractor till

Ceylex Seotember 2018 Engineering Pvt when the project Ltd, Sri Lanka on was closed. 25th October 2015

Construction (site clearance, earthworks, civil works, installation of PV panels, battery)

Design, Supply Work completed Work handed and Installation of and over to STELCO 8MW of Diesel commissioned after completion Generator in in June 2017 Male’ Capital City of Maldives (POISED 003) Completed 100%

Contract award (POISED 003) to Lakdhanavi Ltd, Sri Lanka on 17th April 2017

Construction (installation of generator)

Design, supply, Work completed Contractors were installation & and not able to maintenance of commissioned connect PV grid-tied solar PV- in September systems in 4 diesel hybrid 2018 islands as new power generation powerhouses plant and Completed 100% were not finished generator & grid and available. Infrastructure in Hence, the Haa Alifu Atoll remaining (POISED 004) connection on these 4 islands Contract award were assigned to (POISED 004) to FENAKA. PV Trina Solar Co., connections in China on 30th these islands April 2017 have been completed by Construction (site FENAKA clearance,

12 earthworks, civil Currently O&M works, installation ongoing of PV panels, battery)

Design, supply, installation & Target Not yet started Work was maintenance of completion date: (pre-construction suspended till grid-tied solar PV- June 2021 work in progress) November 2019 diesel hybrid (planned to due to EIB funds power generation complete by not being made plant and November 2019 effective generator & grid Infrastructure in Currently in pre- Haa Dhaalu Atoll construction (POISED 005) stage as the feasibility and design has to be  Contract award revised due to the (POISED 005) change in energy to Trina Solar supply and Co., China on demand in the 24th May 2017 islands in the

delay period.  Construction Hence, field work (site clearance, was commenced earthworks, civil on 28th works, December 2019 installation of to update the PV panels, current situation battery) in islands.

Following this feasibility was revised in the first quarter of 2020. Currently work is in progress with contractor to revise design and scope of work before commencing on- site work.

Design, supply, Work completed installation & and Currently O&M maintenance of commissioned ongoing grid-tied solar PV- in January 2020 diesel hybrid power generation plant and Completed 100%

13 generator & grid Infrastructure in Shaviyani & Noonu Atolls (POISED 006)

Contract award (POISED 006) to Sinomac International- Sungrow Joint Venture, China on 6th December 2018

Construction (site clearance, earthworks, civil works, installation of PV panels, battery)

Procurement of Targeted Ongoing 40% Work was design, supply completion date: suspended in and installation of December 2020 March 2020 due EMS and BESS to Supervision for PV-diesel Engineer having hybrid system in to leave the Addu City country because of the global and Contract award local COVID19 (POISED 006) to situation Nishizawa Limited, Japan on 18th December 2018

Construction (site clearance, earthworks, civil works, installation of PV panels, battery)

Design, Supply, After the Installation & target Not yet started feasibility and Maintenance of completion date: (pre-construction technical studies grid-tied solar PV- December 2021 work in progress) the work of the diesel hybrid subproject had to power generation be put on hold plant and until EIB funds

Generator & Grid were effective on Infrastructure in 21st November Raa & Baa Atolls 2019. Due to the large gap in No contract baseline studies awarded the feasibility reports had to be Construction (site revised for clearance, current situation earthworks, civil in local islands. works, installation This work has of PV panels, been ongoing battery) during this reporting period. Design, Supply, Not yet started After the Installation & target (pre-construction feasibility and Maintenance of completion date: work in progress) technical studies grid-tied solar PV- December 2021 the work of the diesel hybrid subproject had to power generation be put on hold plant and until EIB funds Generator & Grid were effective on Infrastructure in 21st November K, AA, ADh, V 2019. Due to the Atolls and S. large gap in Hulhumeedhoo baseline studies island the feasibility reports had to be No contract revised for awarded current situation in local islands. Construction (site This work has clearance, been ongoing earthworks, civil during this works, installation reporting period. of PV panels, battery) Design, Supply, After the Installation & target Not yet started feasibility and Maintenance of completion date: (pre-construction technical studies grid-tied solar PV- December 2021 work in progress) the work of the diesel hybrid subproject had to power generation be put on hold plant and until EIB funds Generator & Grid were effective on Infrastructure in 21st November M, F & Dh Atolls 2019. Due to the large gap in No contract baseline studies awarded the feasibility reports had to be

Construction (site revised for clearance, current situation earthworks, civil in local islands. works, installation This work has of PV panels, been ongoing battery) during this reporting period. Design, Supply, Technical Installation & target Not yet started surveys were Maintenance of completion date: (pre-construction completed in July grid-tied solar PV- August 2021 work in progress) 2019. Following diesel hybrid this feasibility power generation studies have plant and been completed Generator & Grid and bid Infrastructure in preparations are Th Atoll in progress.

No contract awarded

Construction (site clearance, earthworks, civil works, installation of PV panels, battery)

POISED Project Implementation Progress 2015 2016 2017 2018 2019 2020 2021 2022 No of JFMAMJJASONDJFMAMJJASONDJFMAMJJASONDJFMAMJJASONDJFM AMJJASONDJFMAMJJASONDJFMAMJJASONDJFM 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 (Phase 3b) 24

R&B (Phase 4A) 25

Addu Battery and EMS 1

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

GA, GDh 16

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

Figure 2. POISED project implementation status (as of 30th June 2020)

2.0 Compliance to National Regulations and International Agreements

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 the Table below. 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 submitted to the EPA for in EPP Act (4/93) Article 5 approval and according to EIA Regulation 2012 2 Managing and disposing of - Use the Environmental The conditions in the wastes, oil and gases as Management Plan for this approval for EIA for stipulated in EPP Act project which specifies powerhouses are followed (4/93) how the wastes, oil and in the disposal of wastes gases generated by the and oils. These are long project shall be disposed term storage and re- exporting. 3 Management, handling - Ensure safe disposal of Subprojects have not been and disposal of hazardous chemical, hazardous and handling anything as such waste according to industrial waste so far regulations and 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 waste industrial waste so 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- Some trimming of tree and transportation of scale uprooting, removal, branches was carried out palms and trees as in the cutting and transportation at sites. Routine trimming Regulation on Uprooting, of palms and trees and has been done as needed Cutting and Transportation include in the EIA to minimise shading of PV of Palms and Trees 2006 - Conserve and protect old panels. and Regulations of trees which are rare and Some very minor bushes Conservation of Old Trees are in extinct at island, atoll and ground covering were and National Biodiversity and national level cleared from the site in B. 2002 Strategy and Action - Foster community Goidhoo and Lh. Plan 2002 participation, ownership Kurendhoo. These are not and support for owned by any person and biodiversity conservation grows abundantly in the area.

No trees were removed or cut during ground mounting in Baarah, Huvarafushi and Utheemu in in Haa Alifu 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 - Ensure safe disposal of Waste disposal has been waste and encourage solid waste and encourage done accordingly as recycling and reduction of recycling and reduction of directed by the councils to waste generated as in the waste generated allocated areas Waste Management Policy - Develop guidelines on and Waste Regulations waste management and 2013 disposal and advocate to enforce such guidelines through inter-sectoral collaboration - Encourage waste reduction, reuse, recycling

and recover

3.0 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 the Table below Covenant Environmental compliance requirements Compliance status Sched. 4, The Recipient, FENAKA, and STELCO shall - Conducted detailed Para. 16 ensure that the preparation, design, construction, technical, social and implementation, operation and decommissioning environmental of the Project and all Project facilities comply with assessment prior to (a) all applicable laws and regulations of the design of the project Recipient relating to environment, health and and complied with the safety; (b) the Environmental Safeguards; and (c) plans all measures and requirements set forth in the - Regular monitoring has IEE, the EMP, the Environment Assessment been conducted and Review Framework and any corrective or corrective actions preventative actions set forth in a Safeguards taken where needed. Monitoring Report. Sched. 4, The Recipient shall ensure or cause FENAKA and - Bidding documents Para 21 STELCO to ensure that all bidding documents contain the necessary and contracts for Works contain provisions that provisions. require 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 - Regular monitoring and Para 22 the following: reporting is conducted (a) submit semi-annual 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.

4.0 Compliance to Project Administration Manual (PAM)

Organization Tasks Compliance Remarks Status {complied; {provide details (evidence) to partially complied; show how compliance was not complied; still achieved; or explain the ongoing or n/a at corrective action to be taken current stage of the if there was non-compliance project} including timeline and budget} Executing Monitoring of project Complied. Quarterly monitoring reports Agency - and assisting in are sent to the Ministry project grants

Ministry of Finance Implementing Procurement, bid Complied Agency – preparation, all Ministry of administrative support, Environment support to technical experts etc. Consultants Provide technical Complied expertise for design, conduct baseline studies, social and environmental monitoring and advice

5.0 Compliance to Contract

Contract Contract Provisions Compliance Status Remarks {provide sufficient Package {complied; partially details (evidence) to show complied; how compliance was not complied; still achieved; or explain the ongoing or n/a at corrective action to be taken current stage of the if there was non-compliance project} including timeline and budget} Contract Design, supply, Complied award installation & (POISED 001) maintenance of to China GEO - generator & grid CCE OASIS infrastructure in 5 pilot Joint Venture, islands of Maldives China on 22nd October 2015 Contract Design, supply, Since it was the first pilot award installation & projects some leakage (POISED 002) maintenance of issues in the installation of to Ceylex generator & grid roof PV panels occurred. Engineering infrastructure in 5 pilot Fixing of this took some time Pvt Ltd, Sri islands of Maldives but had been completed. Lanka on 25th Based on this design of roof October 2015 installations was modified for future projects with no further issues Contract Design, Supply and Complied award Installation of 8MW of (POISED 003) Diesel Generator in to Lakdhanavi Male’ Ltd, Sri Lanka

on 17th April 2017

Contract Design, supply, Complied Some of the grid award installation & connections in 4 islands (POISED 004) maintenance of grid- were not completed due to to Trina Solar tied solar PV-diesel the construction of the new Co., China on hybrid power powerhouses not being 30th April generation plant and completed and hence not 2017 generator & grid available for contractors. The Infrastructure in Haa scope of these islands were Alifu Atoll removed from the contract and training was provided to FENAKA staff to complete the work in these 4 islands  Contract Design, supply, Work not started The contractor was not able award installation & to start work until December (POISED maintenance of grid- 2019 due to the loan funds 005) to Trina tied solar PV-diesel not being effective. Revision Solar Co., hybrid power of design and scope of work China on generation plant and is under negotiation with 24th May generator & grid contractor 2017 Infrastructure in Haa Dhaalu Atoll Contract Design, supply, Complied award installation & (POISED 006) maintenance of grid- to Sinomac tied solar PV-diesel International- hybrid power Sungrow Joint generation plant and Venture, China generator & grid on 6th Infrastructure in December Shaviyani & Noonu 2018 Atolls (POISED 006)

(POISED 006) Procurement of Complied Work on hold due to to Nishizawa design, supply and unforeseen COVID19 Limited, Japan installation of EMS pandemic situation on 18th and BESS for PV- December diesel hybrid system in 2018 Addu City

6.0 Compliance to Environmental Management Plan

This reporting period did not have much ongoing construction work on sites. All work except for battery implementation has been completed and is under O&M as needed. Work in Addu

also has to be suspended due to COVID19. Therefore, no ongoing civil works occurred during this reporting period. No occupation health incidents were reported during this reporting period. Monitoring of noise and air quality measurements for operational sites was not possible during this reporting period.

7.0 Environmental Supervision and Monitoring Results

7.1 Environmental Supervision

No capacity development activities were held during this reporting period due to COVID19 travel restrictions Trainings Number and Position Location/s and Remarks of Participant/s Date/s None

Activity Allocated % Spend Remarks Budget None

TOTAL

{Site inspections and audits completed – summarize the number and type of site visits, persons involved, the issues covered, and status of compliance with them, the number of non-compliance notices given out to the contractor as a result of the site visit, and the checklists/reporting format used (sample of checklists and reports to be included as an appendix)} Date Type and Location/s EA, IA, Consultant Remarks Purpose of Visit Visited Staff Participating None

7.2 Quantitative Environmental Monitoring

Quantitative monitoring of noise at construction sites and at powerhouses during operation are to be measured annually. No construction work was ongoing during the reporting period. Measurements at powerhouses will be reported in the next report.

7.3 Pollution Control Monitoring

No pollution issues arose during this reporting period.

No hazardous materials were used during the reporting period

7.4 Occupational and Community Health and Safety Monitoring

No occupational health incidences were reported during this reporting period. However, a health and safety guidelines for working under the COVID19 situation was drafted and submitted to ADB in June.

Trainings/Drills/ Number and Position Location/s and Remarks Inspections of Participant/s Date/s None

Number and Location/s Detailed Time-bound Position of and Date/s Description of Corrective Action Person/s Involved of Incident Incident Fatality None Non-fatal Injury None (Lost Time) Non-fatal Injury None (Minor) Near-miss None Illness None Other Incidents None

8.0 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.

9.0 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 during this reporting period.

Mainly, solar PVs were installed on the roof top of government owned or FENAKA owned buildings and state owned land is used for the ground mounting if required due to the lack of adequate roof space in all islands with the permission of relevant agencies.

9.1 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 1. 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. 4, Without limiting the application of the Involuntary Have been complied Para 18 Resettlement Safeguards, the RF or the RP, the 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. 4, The Recipient shall ensure that the Project does N/A Para 19 not have any indigenous people impact, within the meaning 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. 4, (a) submit semi-annual Safeguards Monitoring Have been complied (all Para 22 Reports to ADB and disclose relevant information past monitoring reports from such reports to affected persons promptly have been submitted to upon submission; ADB)

9.2 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. Land allocation for solar PV ground mounting was sought from Hanimaadhoo, Nolhivaranfaru, Nolhivaram, Kurinbee, and Finey of HDh atoll during this reporting period. And also was initiated the same process in Raa and Baa atolls during the reporting period. No land acquisition disputes arouse. 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.

10.0 Meaningful Consultation and Grievance Redress

On-site consultation was not conducted during this reporting. However, online consultation was carried out to revise feasibility studies and initial designs of Raa, Baa, Kaafu, Alifu Alifu, Alifu Dhaalu, Vaavu, Meemu, Faafu and Dhaalu atolls.

Date Format/Venue Participants Main Issues Raised (Occupation, M/F) 28 Dec 2019 to Visit to all 13 islands of Councillors, senior staff Changes to power 8 January 2020 HDh atoll of island councils and generation systems, staff of the FENAKA developments, and branches development plans, roof -top space and land for ground mounting of Solar PVs March 2020 Online (phone, Viber Presidents/Vice Roof -top space and communication and Presidents, and senior land for ground email) consultation of administrator of the island mounting of Solar 13 islands of Raa atoll councils, in charges of the PVs FENAKA branches March 2020 Online (phone, Viber Presidents/Vice Roof -top space and communication and Presidents, and senior land for ground email) consultation of administrator of the island mounting of Solar 11 islands of Baa atoll councils, in PVs charges/managers of the FENAKA branches April 2020 Online (phone, Viber In charges/managers of Roof -top space and communication and the FENAKA branches land for ground email) consultation of 9 mounting of Solar islands of Kaafu atoll PVs April 2020 Online (phone, Viber In charges/managers of Roof -top space and communication and the FENAKA branches land for ground email) consultation of 8 mounting of Solar PVs

islands of Alifu Alifu atoll April 2020 Online (phone, Viber In charges/managers of Roof -top space and communication and the FENAKA branches land for ground email) consultation of mounting of Solar 10 islands of Alifu PVs Dhaalu atoll May 2020 Online (phone, Viber In charges/managers of Roof -top space and communication and the FENAKA branches land for ground email) consultation of 5 mounting of Solar islands of Vaavu atoll PVs May 2020 Online (phone, Viber Presidents/Vice Roof -top space and communication and Presidents, and senior land for ground email) consultation of 8 administrator of the island mounting of Solar islands of Meemu atoll councils PVs May 2020 Online (phone, Viber Presidents/Vice Roof -top space and communication and Presidents, and senior land for ground email) consultation of 5 administrator of the island mounting of Solar islands of Faafu atoll councils PVs June 2020 Online (phone, Viber Presidents/Vice Roof -top space and communication and Presidents, and senior land for ground email) consultation of 6 administrator of the island mounting of Solar islands of Dhaalu atoll councils PVs

There was no complaint lodged during this reporting period.

Complainant/s Location/s Description of Timeline* Time-bound or Affected and Date/s of Grievance/Complaint Corrective Action Persons Complaint None

* To be solved within 2 weeks

11.0 Conclusions and Recommendations

All on-site activities under the current contracts have been completed and is at the O&M stage except for Addu battery and EMS installation. Work on EIB subprojects also have been able to commence since EIB loan was made effective on 21st November 2019. However due to the long delay since the baseline information has been collected revising of feasibility studies needed to be done for these islands. This included the contract for Haa Dhaalu which was made in May 2017. Apart from visits in January to collect current on-site data, most of the work for this reporting period has been desk-based to review feasibility and designs of the hybrid systems.

Due to the restricted on-site work and travel in this reporting period no major environmental and social concerns arose.