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Quarterly Social Monitoring Report

Project Number: LN2612/EI7303 October to December 2013

PHI: Visayas Base-load Power Development Project

Prepared by KEPCO SPC Power Corporation City,

This report has been submitted to ADB by the Borrower and is made publicly available in accordance with ADB’s public communications policy (2005). It does not necessarily reflect the views of ADB.

2 x 100 MW CEBU POWER PLANT Quarterly Social Monitoring Report

(October–December 2013)

2014.01

Site Office

Social Monitoring Report October – December 2013

Table of Contents

I. Introduction/Background 3

II. Land Acquisition and Involuntary Resettlement – Naga Land 3

III. Land Acquisition and Involuntary Resettlement – 138 kV T/L Project 5

IV. Social Development Plan and Corporate Social Responsibilities Program 6

V. Attachments:

Attachment 1 Table of Status of ROW Cases in T/L Project (as of January 27, 2014)

Attachment 2 Table and Photos of Implemented SDP and CSR Projects (October– December 2013)

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Social Monitoring Report October – December 2013

I. INTRODUCTION/BACKGROUND

A. Brief Project Description

KEPCO SPC Power Corporation (KSPC) undertook the construction of a 2 x 100 megawatts (MW) CFBC power plant in Colon, City of Naga, Cebu. The project is standing in a 10-hectare land that is leased for 25 years from National Power Corporation (NPC). The project involves 2 resettlement issues: a) in the leased property called Naga Land; and b) along the Transmission Line (T/L) Project.

Prior to construction period, resettlement of some informal settlers families just outside the lease land have been carried out as a joint effort by Barangay Colon, the then Municipal Government of Naga, NPC and KSPC. Out of 22 families, 17 families have accepted financial assistance provided and voluntarily moved their houses in the same vicinity outside the plant’s perimeter fence. Five families claim to have legal titles and during the construction phase remain to be partially encroaching in the leased land. NPC filed a civil case for recovery of possession of the areas occupied by these 5 families.

Meanwhile, a social analysis conducted by Transco, now National Grid Corporation of the Philippines (NGCP), concluded that the proposed 138 KV T/L Project requires land acquisition and resettlement. The 0.90–kilometer transmission line from KSPC’s Cebu Power Plant Project to the New Naga Substation will affect 11 landowners, 1 tenant, 13 structures owners and 10 relocatee-households.

II. LAND ACQUISITION AND INVOLUNTARY RESETTLEMENT – NAGA LAND

A. Progress on Case Filed in Court vs. 5 Illegal Dwellers within Naga Land

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Social Monitoring Report October – December 2013

The Court already resolved the case filed by NPC vs. the five (5) Illegal Dwellers within Naga Land. Two of the defendants did not file answers to the complaint while the three others already entered into a Compromise Agreement with National Power Corporation (NPC).

The Court approved the Compromise Agreement and resolved the issue on the two (2) other defendants, who were earlier declared in default for not filing an answer to the complaint.

B. Progress on living condition of 17 Resettlement Families

The families living in the Resettlement Area are already insulated from direct contact with the land reclaimed using coal ash after the completion of the concreting project.

Since June 2012, a doctor has been visiting the Barangay Health Center of Barangay Colon twice a month to provide free health check-ups to the residents. The frequency of the doctor’s visits was increased to every week starting January 2013.

KSPC partnered with the City of Naga Government for this Health Monitoring Program by shouldering the expenses for the honorarium of the doctor not just in Colon but in a total of six (6) barangays in the City of Naga. Aside from the doctor’s free health check-up, KSPC also set aside budget in 2013 for the donation of medicines to Barangays Colon, North and Tangke to augment the supplies they are getting from the local government.

Last May 2013, 28 out-of school youths of Barangay Colon completed the Pipe-Fitting Fabrication course conducted by KSPC through the Alternative Learning System (ALS) Program of the Department of Education (DepEd), the Technical Education and Skills Development Authority (TESDA) and local government units (LGUs).

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Social Monitoring Report October – December 2013

They are the third batch of completers under KSPC’s Skills Development Training Program. The two other trainings also done are Welding Fabrication and Food Preparation and Preservation. KSPC will implemented another skills development training, this time in cosmetology for the women sector of the barangay.

KSPC turned over in November 2013 the motorized banca and headquarters to the fishermen association of Barangay North Poblacion, which can be used for their livelihood program and in guarding its water jurisdiction from illegal fishers.

For the next school year, KSPC will double the budget for its Scholarship Program to widen the coverage of the free education of its existing four (4) beneficiaries and be able to help additional poor but deserving public high school graduates in its host communities. A new program to address the problem of malnutrition among school children will also be implemented, as well as assistance for the Persons with Disability (PWDs) residents of the barangay.

Meanwhile, as committed to the LGU partners, KSPC will continue the quarterly consultation meetings with the three nearest barangays of Colon, North Poblacion and Tangke to update the communities of the different activities of the power plant, as well as get feedback and recommendations from the nearby residents.

III. LAND ACQUISITION AND INVOLUNTARY RESETTLEMENT – 138 kV T/L PROJECT

A. Progress on the remaining ROW Issues

Please see the latest Status of ROW Cases as of January 27, 2014 in Attachment 1.

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Social Monitoring Report October – December 2013

IV. SOCIAL DEVELOPMENT PLAN

A. Progress on Implementation of Livelihood and Community Development Programs for People Relocated from Naga Land and Project T/L

In fulfilling its commitment to uplift the lives of the residents of its host communities, KSPC continuously gives priority to the implementation of various programs and projects that are focused on health, education, environment and livelihood.

Please see Attachment 2 (Implemented Community Relations Projects/Programs from October–December 2013).

V. PROBLEMS AND FUTURE WORK PLAN

So far, no major problem has been encountered. All SDP and CSR activities are being carried out in coordination with the host communities and stakeholders from the planning stage up to actual implementation.

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ATTACHMENT 1 NEW NAGA SUBSTATION & ASSOCIATED TRANSMISSION LINE PROJECT Status of Expropriation Cases, 27 January 2014

Case Date Presiding D Handling Case Title No./Court Filed Judge Counsel Lawyer WOP Remarks

D. KSPC Associate Lines 4 cases

1 NGCP vs. Hrs. of CEB-36004 6- Judge Castillo Atty. Atty. Yu called early January 2014 to confirm the Eugenio dela Oct- Michael Yu computation of the real property taxes, indemnity bond, Corte, namely: RTC 5 09 (Pairing capital gains and documentary stamp taxes for his discussion Eliseo A. dela Judge) W A Y Corte, et.al. Meanwhile, per Order of the Court dated 7 January 2014, the Commissioners appointed in the case are directed to submit ir receipt of the Order.

2 NGCP vs. Hrs. of CEB-36361 9- Estella Singco Atty. Defendants have been paid of the compensation. However, Corazon Ceniza Feb- Capanas NGCP RTC 12 2010 completed because we are still waiting for the clearance for the estate tax from defendants. Cebu City

15 NGCP vs. Amador CEB-36326 29- Raphael ditto P Anastacio Jan- Yrastorza compensation is ongoing. RTC 14 2010

Cebu City

16 NGCP vs. CEB-36003 6- LynaAdviento Atty. Rio ditto We are still waiting for notice from the Court for the next AmparoAlforque Oct- Bilocura hearing schedule. (Note: Hearing on civil cases are deferred and Hrs. of Sergio RTC 58 09 after the earthquake last 15 November 2013. The Palace of Alforque Justice is unsafe for occupancy and the courts are set to Cebu City transfer to another location.)

ATTACHMENT 2

Implemented Community Relations Projects and Programs (October–December 2013)

Date Beneficiary/ies Project Name Amount

Brgy. Colon, North Financial Assistance for the 1 01-Oct 2013 Poblacion & Tangke Day 12,000.00 Participation to the Children s Care Center ’ Month Celebration

Brgys. Colon, North SDP & CSR Program: 2 Oct-Dec. 2013 Poblacion, Tangke, Tuyan, 144,000.00 - Inayagan, Naalad Doctor’s Free Health Check Up in the Barangays

3 01-Oct 2013 NPC-Colon Elem. School Financial Assistance for the 6,000.00 Drum & Bugle Band

Naga Parish St. Francis 4 08-Oct 2013 – Financial Assistance for the 10,000.00 of Assisi Fiesta Celebration

Motorboat & Headquarters Brgy. North Poblacion’s 5 09-Oct 2013 Projects 92,018.00 Fishermen’s Association

Financial Assistance for the Celebration of National 6 29-Oct 2013 5,000.00 Naga City Jail Correctional Consciousness Week

7 06-Nov 2013 Cebu Province Donation for the Earthquake 500,000.00 Victims

KSPC Scholars (4) from 8 11-Nov 2013 40,000.00 Brgys. Colon, North Scholarship Program Poblacion and Tangke

Barangay Colon Indigent 11-November Burial Assistance 9 12,000.00 2013 Residents (3)

Victims of Typhoon 11-November 10 100,000.00 2013 Yolanda in Donation of Relief Goods

Donation for the Victims of Cebu Province 11 19-Nov 2013 Typhoon Yolanda 500,000.00

City of Naga-LGU 12 20-Nov 2013 Donation of 100 units Solar Lamps from Korea

Brgys. Colon, North 12 22-Nov 2013 35,000.00 Poblacion and Tangke Donation of Medicines

Brgy. North Poblacion La Financial Assistance for Purisima Concepcion 13 26-Nov 2013 Fiesta Celebration 10,000.00 Chapel

Donation of BP Apparatus 14 05-Dec 2013 Barangay North Poblacion 8,500.00 Health Center

SDP & CSR Program: Barangay Colon 70,000.00 16 09-Dec 2013 Medical Mission

Christmas Activities and Barangays Colon, North Support for Host 100,000.00 15 11-Dec 2013 Poblacion and Tangke Communities

PHOTOS OF COMMUNITY RELATIONS ACTIVITIES

DONATION FOR CEBU EARTQUAKE VICTIMS

DONATION FOR CEBU TYPHOON YOLANDA VICTIMS

DONATION OF MOTORBANCA TO BARANGAY FISHERMEN’S ASSOCIATION

DONATION OF SOLAR LAMPS TO NAGA-LGU

MEDICAL MISSION FOR SENIOR CITIZENS

CHrISTMAS PARTY FOR INDIGENT CHILDREN IN THE BARANGAYS