Ministry of Electricity

Republic of Yemen

Ministry of Electricity Public Electricity Corporation (PEC) Power Sector Support Project (PSSP)

Project ID (P086865)

Resettlement Policy Framework (RPF)

Sana'a, August 2005

______RPF- Augst 2005 ____ وزارة الكهرباء Ministry of Electricity 2 المؤسسة العامة للكهرباء Public Electricity Corporation مشروع تعزيز قطاع الكهرباء Power Sector Support Project ______

Table of Contents

1. Background 1 2. Project Components 1 3. Project Objective 2 4. Rational For Land Expropriation 2 5. Principles and Objective of the Resettlement Policy Framework 3 6. Legal and Institutional Framework 3 7. Laws Governing Property 4 8. Preparation of Land Acquisition Plan 5 9. Compensation 8 10. Estimation Committee 9 11. Consultation Eligibility and Grievance Procedures 9 12. Monitoring and Evaluation 11 13. Financial Costs 11 14. Annexes 12 15. Annex - 1 - Detailed of Generation Sub-Components 13 16. Annex -2- Detailed of Transmission and Sub-Stations Sub-Components 15 17. Annex – 3 – Detailed of Distribution Sub-Components 17 18. Annex – 4 – Rout Maps for Proposed Transmission Overhead Lines Circuits 132KV 19 19. Annex – 5 – List of Laws related to Expropriation and Resettlement 24 20. Annex – 6 - Land Acquisition Plan and Compensation Monitoring Form 25 21. Annex – 7 - Marib Gas Power Plant phase one ( reference map) 26

Acronyms and Abbreviations

MOE Ministry of Electricity PEC Public Electricity Corporation IDA International Development Association WB World Bank RPF Resettlement Policy Framework KV Kilo Volt MW Mega Watt KM Kilometer PEDL Public Eminent Domain Law EC Estimation Committee RER Real Estate Register LAP Land Acquisition Plan RAP Resettlement Action Plan

RESETTLEMENT POLICY FRAMEWORK (RPF)

POWER SECTOR SUPPORT PROJECT

1- BACKGROUND

The WORLD BANK – IDA (International Development Association) in response to the Government request for improving the power sector in Yemen intended to finance the Proposed Power Sector Support Project - Ministry of Electricity (MOE) / Public Electricity Corporation (PEC). During the course of the project preparation the World Bank requested PEC to prepare a Resettlement Policy Framework (RPF) in compliance with the World Bank policy. The services of a legal consultant is a requirement during the preparation of the Resettlement Policy Framework (RPF) in order to highlight the legal analysis for the project based on World Bank safeguards policy OP 04.12, current PEC and Yemeni Laws.

This RPF attempts to state the policy and procedures for any land acquisition or expropriation for public interest or properties affected due to restriction of access to assets. It will focus on the government procedures for solving and compensating affected project person/s and its compatibility with Bank policies with regard to resettlement.

2- PROJECT COMPONENTS

The Power Sector Support Project component consists of the following sub- components:

(i) Generation Rehabilitation sub-component : It consists of (a) Supply and installation of a 160 ton per hour boiler at Al- Hiswa steam power station in Aden. Details are included in Annex -1 –

(ii) Transmission sub-component : It consists of (a) New transmission lines, new sub-stations, expansion of existing sub-stations in Hodeidah area, (b) New transmission lines, new sub- stations, expansion of existing sub-stations in Dhamar area. Details are included in Annex -2 –

(iii) Distribution component and Loss reduction component : It consists of supply and delivery of (a) cables, conductors and related accessories, (b) transformers, auto-reclosures, (c) High Tension and Low Tension switchgear, (d) equipment for 33/11 KV sub-stations (e) supply and delivery of (a) meters and (b) reactive compensating equipment. Details are included in Annex-3 –

3- PROJECT OBJECTIVE

The project aim is to improve the efficiency and quality of electricity supply through the Bank financing of critical investments for the supply and installation of a 160 ton per hour boiler at existing Al-Hiswah steam power station in Aden, de-bottlenecking of the transmission system, loss reduction programs and strengthening of the distribution systems among other rural energy access.

4- The main project sub-components which is covered under the RPF are those for Transmission Lines.

5- RATIONALE FOR LAND EXPROPRIATION

5-1 The physical activities shall include the construction of 132KV double overhead transmission lines circuits as detailed in Annex - 2 - , which will require very small lands for transmission towers footings. The benefit of the construction of the proposed transmission lines would improve the availability and reliability of electricity mainly by transferring power across the country via the interconnection transmission lines with the ongoing Marib Gas Power Plant phase one ( reference map is included in Annex – 7 - approx. 180 km east of Sana'a) with 300MW for stage one, currently the power supply is subjected to power shortages which have adverse social and economic impact on public due to shortages of generations, this will improve quality of power supply to consumers / public by reliving overloaded transformers and eventually reducing losses which will be beneficial.

5-2 The benefits of distribution the project location (Dhamar , Yarim and Hodeidah) will provide employment opportunities for the communities as proportionate to the investment of each sub-project components. Most likely contractors will bring some skilled workforces from abroad and some from other part of the country, the semi-skilled and unskilled of the workforce will be mainly available by local communities.

5.3 The land required for K16 sub-station is approximately 55,696 m^2 and already marked up, for Yarim sub-station is approximately 48,400 m^2 and already fenced, other sub-stations will be extended where sufficient space is available. The transmission lines are overhead lines type run across the country side where only the towers footings require very small area of land and will require no expropriation, owners of agriculture lands if any will be able to use their lands.

6- PRINCIPLES AND OBJECTIVE OF THE RPF

The object of the policy is to ensure that any involuntary loss of assets or relocation of economic activities or residence are minimized and fully compensated, and adequate procedures exist for prior consultation of all affected persons, assessments of losses and entitlements, handling complaints / disputes and monitoring the outcomes which confirm to the principles of full and prior compensation for any lost assets and full restoration of standards of living. The policy also applies to those who lack legal or formal ownership of affected

______RPF- Augst 2005 ____ وزارة الكهرباء Ministry of Electricity 6 المؤسسة العامة للكهرباء Public Electricity Corporation مشروع تعزيز قطاع الكهرباء Power Sector Support Project ______assets and are entitled to faire compensation and all other forms of social assistance.

This document sets down the policy and procedures for any land acquisition or restriction of access to assets, through expropriation in the public interest. It applies to private and communal lands or properties affected throughout the Proposed Power Sector Project, it defines how the government of Yemen and PEC practice deals with identification, mitigation and compensate any adverse impacts on the assets and livelihoods of the affected people by expropriations together with the governing laws to safeguard the interest of the population impacted by the project, especially the poor and vulnerable.

7- LEGAL AND INSTITUTIONAL FRAMEWORK

7.1 Relevant Legislations of Yemeni laws (Constitutional, Election and Local Administration Law) provides the legal framework for the project as addressed in Annex – 5 - for laws regulating government actions as well as the rights of citizens, but there is no specific regulation for public consultation. The Yemeni constitution, Article 20 prohibits the General Expropriation of assets except through a court judgment. Further, Article 7 provides that the national economy is based on principles such as the protection of the private property except in the case of necessity for public interest and for faire compensation according to the law and as the case for OP 04.12

7.2 The Preparation of Environmental Impact Assessment (EIA) will be carried out closely with PEC and concerned committee, where public consultation is a requirement which will have a reference to the social framework. Environmental Impact Plan (EIP) shall define the processes for implementation, mitigation and monitoring in conjunction with PEC for the management of the legal affaires in liaison with local authorities, relevant ministers and concerned community.

7.3 Public Interest Projects, according to Article 2 of the Public Eminent Domain Law (PEDL) is covering everything related to the two following categories of works; (i) necessary projects which does not have more than one choice of location; and (ii) necessary projects which have more than one choice of location. The first category includes natural resources areas (oil , gas), waterways, airports, seaports, dams, water projects, security. The second category includes schools, markets, roads, manufacturing areas, agricultural, electricity projects, housing, development and investment plans.

8- Laws Governing Property

8.1 The Yemeni Constitution (Article 20) provides the necessary protection to protect citizens from expropriations of their assets. Public Eminent Domain Law (PEDL), passed by parliament in 1995, which gives the governmental bodies the right to expropriate and appropriate individual’s private property on condition that there is no suitable land in the public domain to fulfill its need for executing the project provided the legal conditions are met and fair compensation is made according to the law which is in consistent with World Bank’s policies. ______RPF- Augst 2005 ____ وزارة الكهرباء Ministry of Electricity 7 المؤسسة العامة للكهرباء Public Electricity Corporation مشروع تعزيز قطاع الكهرباء Power Sector Support Project ______

8.2 Many conditions exists before expropriation can be considered lawful even though the PEDL gives governmental bodies the right to expropriate individual’s private property because the State doesn’t own real estate to fulfill its need.

8.3 In 1992 new PEDL issued related to the law of Public Eminent Domain which deals with right of the government to appropriate real estate for the public interest. It contains four chapters; (i) Situations of Legal Expropriations; (ii) Expropriation procedures; (iii) The agency responsible for evaluation of the compensation and its procedures – in this case the agency is the Estimation Committee; (iv) General provisions.

8.4 Procedures of expropriation are explained in the second chapter of the PEDL. There are five types of expropriations; (i) Administrative, (ii) Amicable, (iii) Judicial Temporary Appropriation; and (v)Expropriation for Housing Projects.

8.5 The Real Estates Law, Article 59 recognize the rights of squatters on public domain to be compensated in case of involuntary settlement.

8.6 Legal Guidelines of compensation differ among the types of expropriations mentioned in the PEDL where the “ Amicable Expropriation” is the expropriation conducted based on consent of owner of the real estate. Cash or in kind of compensation may be agreed upon between the governmental body and the owner. Otherwise compensation is estimated by the Estimation Committee (EC). If the real estate was communal, the consent of all owners is required. There is always a risk from new squatters might appear for more compensation at latter stage.

8.7 The agreement of both parties and the lack of rejection within the period of twenty days notice are prerequisite before effectiveness registration at the Real Estate Register (RER) and to ensure that the owner has received the compensation amount or as agreed, in case expropriator fails to pay or to register the exchanged real estate all expropriation procedures will be considered cancelled.

8.8 The governmental body expropriator should inform the RER to make the expropriated real estate to prevent any transactions in regard to the real estate. Areas where there is no RER, registration of real estates is to be done at courts which shall make records for such purpose.

8.9 The real estates registration system in Yemen is inefficient. Proof registration is required but there is little public confidence in the Land Registry mainly in the rural areas where owners depends on local community leader for obtaining documents / deeds which is the base for non- registered land. Concept of the Law classifies lands to number of types including uncultivated land, white land (outside urban planning areas), and planned land (urban).

8.10 The customary law of the Yemeni tribes, religion, communal and customary norms do require the importance of avoiding harms and damages to the property affected, it facilitates for recognizing for any

______RPF- Augst 2005 ____ وزارة الكهرباء Ministry of Electricity 8 المؤسسة العامة للكهرباء Public Electricity Corporation مشروع تعزيز قطاع الكهرباء Power Sector Support Project ______guidance that will improve resettlement implementation which is consistent with the Bank policy.

8.11 Following project screening based on visual assessment of the existing situation, PEC shall provide briefings of findings to the Governor and stakeholders in order to determine the procedures in the case of expropriation and will be specified in the resettlement plan (Abbreviated or Full).

8.12 In case of expropriation, the established Resettlement plan in coordination with PEC estimation committee , its processes will ensure that the affected persons are :-

(a) Informed about their rights related to resettlement (b) Consulted on resettlement acceptable alternatives (c) Provided with full compensation

8.13 During the design phase of the works, a site map includes land use will be prepared and will serve as a basis for the preparation of land acquisition plans. (Land use may include, human settlements, agricultural activities, economic activities etc).

9- PREPARATION OF LAND ACQUISTION PLAN (LAP)

91- In order to minimize the proposed physical works impact when a site for physical sub-project is first identified, including alternative designs, the pre-feasibility study shall include cadastral information (if the land is surveyed) or other information on ownership, as well as existing structures and uses of the land that would be directly affected by the works, either temporarily, or permanently. This information shall be verified by a qualified social scientist who shall record in writing and where possible with photographic record, and enumerate all economic, residential or other ownerships and uses of the land that would be affected, together with an estimate of the numbers of people affected by type of impact.

9-2 In the event that the proposed physical works entails no disturbance or any expropriation of occupied or private land, this information shall be properly recorded and made available.

9-3 If the proposed design entails any impact on land or asses , the design shall be reviewed and revised based on the appropriate and documented consultations with the affected persons, and with the aim of avoiding or minimizing expropriation and adverse socio-economic impacts.

9-4 Land Acquisition Plan ( LAP ) Procedures. Where impacts would be unavoidable, PEC will notify the Bank by means of a brief Land Acquisition Plan for that sub-project, and the information provided by the pre-feasibility studies. This LAP, based on the social scientists findings, will identify and justify the temporary or permanent expropriations proposed, and will indicate anticipated impacts on all project-affected persons, including those who lack legal or formal ownership of affected assets. The precise number of project-affected people that will require compensation must be included in the LAP after ______RPF- Augst 2005 ____ وزارة الكهرباء Ministry of Electricity 9 المؤسسة العامة للكهرباء Public Electricity Corporation مشروع تعزيز قطاع الكهرباء Power Sector Support Project ______being identified in a census carried out for that purpose. The LAP will also include : i) specific entitlements and compensations or other remedial actions to be taken; ii) the assignment of executing roles and responsible agencies; and iii) a record of the initial consultations with the affected population.

9.5 The LAP shall then be screened by the Bank and will advise to prepare Full or Abbreviated Resettlement Action Plan and whether or not other remedial actions need to be taken.

9-6 ABBREVIATED RESETTLEMENT PLAN PROCEDURES

Abbreviated Resettlement applies when any sub-project components that may cause taking of land or other assets is likely to affect relatively few people (less than 200 people), and its impacts are minor (changes in occupation or relocation of residence are not required).

An Abbreviated remedial plan will be prepared for each sub-project which should present:

i. Project activities requiring acquisition of land or other assets with required detailed such as sketch maps.

ii. Officially certified enumeration of the persons affected and the types of impact.

iii. Entitlements corresponding table of compensation and bases of compensation rates.

iv. Time table for implementation of the action.

v. Organization and financial arrangements.

vi. Previous Consultation arrangements.

vii. Grievance procedures.

viii. Verification of availability of resources for compensation.

9.6 FULL RESETTLEMENT ACTION PLAN (RAP) PROCEDURES

Where a sub-project would incur involuntary resettlement or other significant large scale impacts, preparation of the Full Resettlement Plan is required which will include:

(1) Socio – Economic study to assess the impact; and (2) Preparation of Full Resettlement Plan.

9.7 The Socio – Economic study is conducted by a qualified Social Scientist that examines the nature of the impacts, the socio- economic and cultural setting, local organizations, and social risks, as well as the indicators that would ensure that the project affected people at

______RPF- Augst 2005 ____ وزارة الكهرباء Ministry of Electricity 10 المؤسسة العامة للكهرباء Public Electricity Corporation مشروع تعزيز قطاع الكهرباء Power Sector Support Project ______minimum regain their former quality of life or preferably are enabled to improve it. The socio- economic studies cover the following:

i) The results of the census including current occupants of the affected areas to establish the baseline for eligibility criteria and to prevent subsequent inflows of people and claim; ii) Description of the affected households including information about livelihoods and production and labor systems, standards of living and an analysis of their legal rights and informal entitlements and any issues of potential conflict; iii) Statement of the magnitude of the expected loss (total or partial) of assets and the extent of physical or economic displacement; iv) Information about especially poor or vulnerable groups for whom special provisions should be designed ; and v) Provisions to update information about displacement, livelihoods and standards of living before, during and after displacement.

9.8 If full RAP is required the plan must include the following components:

a) A discussion of how the displaced will maintain or upgrade their living standards; b) Provision of services (facilitation of relocation); c) Services offered after relocation (e.g. employment , electricity etc.) based on an assessment of their needs; d) Site selection for new settlement together with relocation risks and reconstruction; e) Organization and timetable (what institution is responsible for implementation the relocation); f) Monitoring implementation and outcomes; and g) Financing of resettlement costs.

9.9 PEC and EC will prepare a full Resettlement Action Plan (RAP) for each individual sub-project which will incorporate all elements of the abbreviated remedial action plan in addition to the social assessment findings

9.10 The Resettlement Plan Procedures shall be made available in Arabic and approved by the Bank prior the execution of sub – projects or expropriation activities.

10 COMPENSATION

Faire compensation is a constitutional condition for lawful expropriation according to article 1166 of the Civil Code No. 19 / 1992 stated that no one to be deprived from its property except in accordance with the law and in exchange of faire compensation.

Affected assets are defined as one of two types ;-

(a) Houses and other structures, involving infrastructure for shelter or productive activities, where owners of affected houses or other structures will be compensated based on a mutual agreement. ______RPF- Augst 2005 ____ وزارة الكهرباء Ministry of Electricity 11 المؤسسة العامة للكهرباء Public Electricity Corporation مشروع تعزيز قطاع الكهرباء Power Sector Support Project ______

(b) Land assets, either productive or unproductive, in some cases where the transmission overhead lines will run, land can be used by the owners of agriculture lands due to very limited area of land required for 132KV transmission towers footings.

The main form of compensation is limited to monetary award and will not include equivalent land/s, the entitlement will be determined by PEC - Estimation Committee and the project affected people will be informed in case their land will be expropriated and that they would be compensated through negotiations.

The rightful owner and the displaced persons may be classified into one of the three following groups: -

(a) Those who have formal legal rights to land and physical assets ,including customary and traditional rights recognized under the laws in Yemen. (b) Those who do not have formal legal rights to land or physical assets at the time the census begins, but have a claim to such assets, provided that such claims are recognized under the laws in Yemen or become recognized through a process identified in the resettlement plan. (c) Those who have no recognizable legal right or claim to the land they or building are occupying.

Persons covered under (a), (b) and (c) above are provided assistance if they occupy land or buildings prior to the date of census to identify affected persons.

Proof registration in Yemen is required but there is little public confidence in the Land Registry mainly in the rural areas where owners depends on local community leader for obtaining documents / deeds which is the base for non-registered land. Concept of the Law classifies lands to number of types including uncultivated land, white land (outside urban planning areas), and planned land (urban).

11 ESTIMATION COMMITTEE (EC)

11-1 The PEDL define the formation of the EC that the committee consist of a judge, an engineer, representative of the expropriated entity, and the owner of the expropriated real estate. The law stipulates that the estimation committee process should look at number of plantations and establishments. If there was more than one owner and they did not agree on one representative, then the majority decides. Otherwise the president shall appoint an expert as a representative of the owner. Decisions of the EC are based on the majority cast.

11.2 When estimating compensation, EC should consider :

i- Current value of real estate during estimation; ii- Current situation of buildings, establishments, and plants on the real estate; and iii- The improvement of the location or benefit of the remaining part of the real estate or the increase of its value

11.3 In case of partial expropriation, the improvement of the location or use of the remaining expropriated estate can be one of the factors to look at by EC. If the remaining of the expropriated estates becomes useless, court should order ______RPF- Augst 2005 ____ وزارة الكهرباء Ministry of Electricity 12 المؤسسة العامة للكهرباء Public Electricity Corporation مشروع تعزيز قطاع الكهرباء Power Sector Support Project ______the expropriation of the whole estates. This request by the owner should be filed within two years. If partial exportation resulted in material damages to the remaining of the estate, the owner of expropriated estate and the owner of any other damaged estates are entitled for compensation.

11.4 The EC will estimate the property value for those who have proof proper documentation. Article 59 in the Real Estates Law also recognize the rights of squatters on public domain to receive compensation in the event of involuntary settlement. Compensation is determined by standards set by the technical committee. If public land is occupied by squatters, a special technical committee set up to assess the value ( By Ministry of Public Works and Urban Development).

11.5 In case there is disputed claim of ownership and other conflicts resulting from involuntary resettlement, claimants have recourse to the Appeal Courts and the Supreme Court.

11.6 PEC has its own EC at the legal affaires department who applies the Yemeni law in case of resettlements or expropriation for project/s execution amicably by direct compensations and liaison with local authorities and Ministry of Public Works and Urban Development (MPWUD), this can be done after the determination of who will be eligible for assistance.

12 CONSULTATION ELIGIBILITY AND GRIEVANCE PROCEDURES

12-1 Acquisition of land or other assets and the preparation of remedial plans (such as abbreviated plans RAP , full RAP), require consultation with project affected people. After consultation any remedial plans will be made clear to the project affected people together with; (i) compensation rates for all categories of affected assets; (ii) eligibility criteria for all other possible forms of assistance; and (iii) grievance procedures.

12.2 Informal consultation will take place at the project site/s as well as formal briefings of findings with the Governor and stakeholders and the determination of the Resettlement Policy Framework is based on visual assessment of the existing situation during the screening stage the people effected by the project will be informed that compensation will be made and that the amount will be determined by the EC according to market value of the land. In case of expropriation, the established Resettlement plan in coordination with PEC estimation committee, its processes will ensure that the affected persons are; Informed about their rights related to resettlement; consulted on resettlement acceptable alternatives and provided with full compensation. The owners of property that became Public Domain property should be fairly compensated in accordance with the PEDL.

12.3 A rapid increase in the value of land, where many people engaged in the selling and / or acquire land with high profit, the result is higher expenditures of lands at the time project implementation is known.

12-2 Eligibility Criteria for displaced people can fall within; (i) those who have formal legal rights to land and physical assets, including customary and traditional rights recognized under the law in Yemen; (ii) those who do not have formal legal rights to land or physical assets but have a claim which ______RPF- Augst 2005 ____ وزارة الكهرباء Ministry of Electricity 13 المؤسسة العامة للكهرباء Public Electricity Corporation مشروع تعزيز قطاع الكهرباء Power Sector Support Project ______recognized under the law; and (iii) those who have no recognizable legal right or claim to the land they or building are occupying.

12-3 If the project affected people are not satisfied with the resettlement arrangements / implementation and entitlements, they can seek satisfaction to resolve the conflict through many sources such as local community leader, sheikhs, or other custom practices. If no successes they can make grievance in writing to the committee / relevant specified authorities , in case verbal grievance made the committee / relevant authorities should write / note it down. A reply should be made by the authorities to the project affected people. If the disputes can not be resolved through administrative way, the affected project people can initiate legal action in accordance with law.

12.4 Although PEC carried out a preliminary survey and provided a rout maps for all proposed double circuits 132 KV transmission overhead lined and associated 132/33 KV sub-stations. - Annex – 4 - , one of the most important observation is that the construction of the proposed double circuits 132 KV transmission overhead lined from Dhamar substation to Hizyaz (Sana’a) substation will run along / parallel to the existing transmission lines constructed almost 22 years ago through mountains which should have no restriction of doing so, and those for Hodeidah region will run on a flat land. The maps indicates that there is no expropriation nor resettlement of people, but it is possible that squatters appear form time to time or even prior project executions. If for any unforeseen reasons land acquisition is necessary it might be partially within public domain which considered to be relatively minor but will not require changes in occupation or relocation of residence.

13 MONITORING AND EVALUATION

The EC of PEC is responsible for the overall implementation of the land acquisition for the project sub-component in coordination with the PMU as the case with all past executed projects, in case of a resettlement program, the PMU shall also monitor and evaluate the program mainly where several agencies may be involved depending on the complexity of the RAP and in close collaboration with the local authorities where necessary.

In case of the RPF, PEC will be responsible for overall monitoring of the implementation incase of the RPF in liaison with the local authorities and the governors including :-

(i) Monitoring of resettlement plan preparation (ii) Establishment of project monitoring documentations (iii) Monitoring of resettlement plan implementation

A monitoring form is included in Annex – 6 - of this RPF.

14 FINANCIAL COSTS

______RPF- Augst 2005 ____ وزارة الكهرباء Ministry of Electricity 14 المؤسسة العامة للكهرباء Public Electricity Corporation مشروع تعزيز قطاع الكهرباء Power Sector Support Project ______The EC will advice PEC on the cost and determines the amount of compensation for land acquisition (if any), by making direct compensation to the effected project person/s. Cash compensation shall be sufficient to replace the lost land / other assists in a fair manner as cost in local markets which is the current value of real estate during estimation.

PEC will deal with compensation from its own budget in accordance with previous project through there EC and regulations. There will be no temporary land use nor temporary dislocation. Compensation shall be made before works to begin.

ANNEXES

______RPF- Augst 2005 ____ وزارة الكهرباء Ministry of Electricity 16 المؤسسة العامة للكهرباء Public Electricity Corporation مشروع تعزيز قطاع الكهرباء Power Sector Support Project ______Annex - 1 –

-A- Detailed of Generation sub-Components

Generation sub-component:

Background

PEC is short of generating capacity. It also has deficiencies in transmission and distribution capabilities in some areas. In July 1997, PEC with the energization of the 132-kV Aden-Taiz line interconnected its southern transmission system comprising of Al-Hiswa complex with northern transmission system comprising of Ras Katenib/Al-Mukha complex. This interconnection added flexibility in operations and provided some additional capacity on account of diversity of loads in the two systems. Under the ongoing Sana’a Emergency Power Project PEC added 30 MW of diesel generation at Dhaban-2, including a 5 MW of diesel generation at Al-Qa’a power station and rehabilitated 20MW of diesel at Dhahban-1 increasing the plant capacity from de-rated 8 MW to 18 MW. A new 70 MW of diesel power plant has been commissioned in October 2004 at Hizyaz.

The inter-connected system (oil fired steam as well as diesel plants, including the new Hizyaz DPS) has now 771 MW of installed capacity of which the effective capacity is 530 MW. In addition to the interconnected system, PEC has isolated diesels of 161 MW installed capacity at Mukalla, Sayoun, Ataq and Laouder; the effective capacity is 94 MW. The past and future estimated load demand as well as energy consumption of total system (interconnected plus isolated) are included in Annex-5. The details included indicate that during FY03, the maximum shortage was 21 MW (on November 15) of peak power. This was in addition to the suppressed and unmet demand as estimated by PEC of about 130 MW. For FY03, the load demand for the national grid was (580 +130) MW, the energy consumed during the year 2003 was 3169.4 GWh. The average load shedding was about 20% of peak demand.

Proposed components

The Project provides for the addition of a 160 ton per hour boiler at one oil fired steam plants at Al-Hiswa (5X25MW) in Aden. The details are discussed below. The cost of this component is based on the estimates provided by PEC, based on previous experience and offers.

Power Station Details, Rehabilitation Plans, Cost Estimates

Al-Hiswa: There are five steam turbines of 25 MW each and six boilers of 160 tons/hr each for supply of steam to them. PEC has already carried out overhaul of turbine nos. 3 and 4. It now intends to overhaul the remaining three turbines nos. 1, 2 & 5 and boilers nos. 2, 4, 5 and 6. Rehabilitation of boilers 1 & 3 is in progress. PEC plans to replacing some old parts and modernizing its combustion control and firing systems. In addition, PEC plans to install and commission a new 7th boiler of 160 tones/hour capacity to increase the power station reliability. The new boiler will work in conjunction with 6 nos 160 t/h capacity boilers at 98 bar and 540 C, PEC also plans to modernize its control/protection system.

Technical Justification As shown in the above tables, the overhaul and rehabilitation is justified because it will: (a) improve efficiency (b) increase the available rated MW capacity

______RPF- Augst 2005 ____ وزارة الكهرباء Ministry of Electricity 17 المؤسسة العامة للكهرباء Public Electricity Corporation مشروع تعزيز قطاع الكهرباء Power Sector Support Project ______and finally increase the available running hours. All the plants are about 20 years old and can continue to provide useful service if maintained properly

Annex – 2 -

Detailed of Transmission and sub-stations sub-Components

Transmission Sub-component

Background

PEC, assisted by its consultant (Kennedy & Donkin, U.K.) carried out a series of system studies to identify least cost options to develop its transmission system. The consultant produced a Northern Loop Transmission Project Report (No.40201). Based on the recommendations of this report, PEC has submitted proposals for augmenting its transmission facilities related to two grid substations: (i) Hodiedah and (ii) Dhamar as follows:

Current Status and proposed plan

Hodiedah Substation: This 132-kV Bulk Supply Point (BSP) substation is at present interconnected to Ras Katenib power station and 132-kV substation. The 33-kV load demand here has gone up to 78MW 70 MVAR (totaling 105 MVA), whereas 132/33kV transformer capacity is only 2X60 MVA. PEC proposal calls for creation of a new 132-kV substation at Kilo16 with transformers of 132/32-kV and 33/11-kV of 60 MVA and 20 MVA each. Kilo 16 substation will be fed through a 12 km 132-kV line from Hodiedah. About 36 MW of 33- kV load fed from Hodeidah DSP station (Kornish, Maraweah, Kilo 4 feeders) will be transferred to the new Kilo 16 sub-station resulting in improved performance. Alternatively, if the 33-kV loads continue to be fed from Hodeidah, it will result in poor voltage and increased system losses.

PEC is also proposing a new single Bus-Bar 132-kV substation at Hodiedah because on account of substantial commercial development in that area, it is not possible to acquire new land. The existing substation has enough land for the interlinking substation and no new land will be required.

Dhamar Sub-station: This is the second BSP substation proposed to be augmented under the project. A new 90 km of 132-kV double conductor d/c line from the existing Dhamar substation to Hiziaz s/s is proposed, including an extension of 132kv s/s at Dhamar. The substation at Hiziaz is proposed to be constructed under the Marib Transmission line project.

Yarim Substation: PEC is also proposing a new 132/33-kV substation at Yarim (2/45MVA 132/33kV transformers and 33/11kV, 20MVA transformer), by tapping the 132-kV existing double circuit lines between Dhamar and Ibb. The new Yarim substation will relieve over loading of Dhamar substation

Technical Justification These works are least cost options to meet the increasing loads. If instead of these new 132-kV works, existing 33-kV facilities are augmented, system losses will increase and voltage regulation will become very difficult.

Procurement Packages and their costs Based on above, there will be possibly eight (8) sub-packages including consultancy which could be re-grouped in two main packages as explained below. In addition there will be a consultancy package as well :

______RPF- Augst 2005 ____ وزارة الكهرباء Ministry of Electricity 19 المؤسسة العامة للكهرباء Public Electricity Corporation مشروع تعزيز قطاع الكهرباء Power Sector Support Project ______1. Supply and installation of 12 km of d/c 132kV line from Hodiedah to Kilo 16; 2. Supply and installation of 90 km of d/c 132 kV line from Dhamar to Hizyaz; 3. Supply and installation of a 132/33 kV new substation at Kilo 16; 4. Supply and installation of 132 kV new single busbar substation at Hodiedah; 5. Supply and installation of 132 kV (extension) Dhamar substation; 6. Supply and installation of 132/33kV new substation at Yarim; and 7. Reactive compensation at Hodiedah Kilo 16.

______RPF- Augst 2005 ____ وزارة الكهرباء Ministry of Electricity 20 المؤسسة العامة للكهرباء Public Electricity Corporation مشروع تعزيز قطاع الكهرباء Power Sector Support Project ______Annex-3 Detailed of Distribution sub-Components

Distribution sub-component

Back Ground

PEC’s highest transmission voltage is 132-kV which is stepped down to 33, 11 and 0.4 kV for load distribution purposes. PEC’s present maximum demand is 613 MW which is distributed to the consumers entirely at 400 volts. The number of 11/0.4-kV distribution transformers of various sizes is about 6700 with an installed capacity of about 1,600,000 MVA. The number of 11-kV feeders feeding these transformers is 374. PEC’s distribution losses for FY04 are about 25%. Over the years, PEC has been able to reduce these losses gradually. During FY99, these losses were at 31.6%.

Survey of its system

In order to review the present status of its distribution system PEC, on the suggestion of IDA, mounted a campaign to survey its 33kV, 11kV, 0.4kV feeders, and 11/0.4-kV distribution transformer. This survey has shown that PEC has a total of 11-kV 374 feeders and 33-kV 108 feeders of which 119 number 11-kV and 9 number 33-kV feeders need rehabilitation. The deficiencies of these feeders are as follows:

(a) 11kV Feeders

There are about 89 overhead feeders (862 km long) and 34 underground feeders (80 km long) with undersized conductor diameters, There are 56 feeders of very long lengths (1706 km long), There are 46 feeders having many spur lines and 99 feeders have excessive number of transformers connected to them.

(b) 33kV Feeders

The number of feeders with long lengths is 9 (430 km).

Strategy

The main strategy to rehabilitate the above defective feeders is as follows:

(a) Change the conductor size to higher size (with 100 sq. mm. ACSR for O/H and 300 sq mm AL for U/G 11kV feeders); (b) Erect new lines parallel to the existing lines and transfer some loads from the existing line to new line so that feeder length is restricted to 15 km and maximum load is restricted to 2.5 MVA; and (c) Add new 33kV substations at suitable locations, disjoint the existing long feeders and feed them from feed them from the new substation.

Bill of materials

(a) The material needed for above rehabilitation is as follows; (b) Material needed for 2566 km of 11kV O/H line, (c) Material needed for 215 km of U/G cable; (d) Equipment for 3 new substations of which two substations will include 2X10 MVA, 33/11-kV transformers and the third sub-station will include one transformer of 10 MVA, ______RPF- Augst 2005 ____ وزارة الكهرباء Ministry of Electricity 21 المؤسسة العامة للكهرباء Public Electricity Corporation مشروع تعزيز قطاع الكهرباء Power Sector Support Project ______33/11-kV transformer; (e) Package type distribution transformers of various sizes (90); and (f) Auto-reclosure (100).

Benefits

The main benefit of the above rehabilitation will be to improve the quality of supply through:

(a) improvement in the voltage profile; (b) reduction of losses; and (c) reduction in duration and number of outages.

Procurement Plan

PEC has prepared technical specifications of ten items of goods as follows:

Item serial no. and description 1. Underground Cables 33-kV and accessories 2. Underground cables 11-kV and accessories 3. Package unit transformers 4. Wooden Poles 5. Sub-stations 33/11-Kv 6. Conductors 7. Insulators and fittings 8. Overhead lines and accessories 9. Switches and fuses 10.Surge Arrestors 11.Meters 12.Reactive compensation equipment Total

Whereas item nos. 1 through 10 will expand and rehabilitate the distribution system and reduce losses, item no11-12 will reduce losses only. However PEC will review these specifications and complete them with technical particulars drawing as discloser and get Bank’s approval before inviting Bidder.

Route Maps for Proposed Overhead Transmission Lines Double Circuit 132 KV

(1) Dhamar – Sana’a (Hizyaz) Project Area

MABA'R

______RPF- Augst 2005 ____ وزارة الكهرباء Ministry of Electricity 23 المؤسسة العامة للكهرباء Public Electricity Corporation مشروع تعزيز قطاع الكهرباء Power Sector Support Project ______(2) Hodeidah and K16 sub - station Project Area

List of Laws related to Expropriation and Resettlement

i- The Yemeni Constitutional 1990 and amendments of 1994 & 2001. i- Public Eminent Domain Law No.1 of 1995 (PEDL) ii- Republican Decree No. 12 of 1995 concerning the Organizational Regulations of Ministry of Public Works and Urban Development iii- Republican Decree Law No. 21 of 1995 concerning the State's Real Estate iv- Republican Decree No. 170 of 1996 concerning the Executive Regulations of the State's Real Estates Law No. 21 of 1995 v- Law No. 20 of 1995 concerning the Urban Planning vi- Law No. 14 of 2002 concerning the Civil Code vii- Republican Decree of the Law No. 32 of 1992 concerning the Endowments viii- Law 39 of 1991 concerning the Real Estate Registry as amended in 1997 , 1999 and 2002 ix- Republican Decree No. 99 of 1996 concerning the Regulations Organizing the Procedures of the Leasing, Usufruct, and Investment of the Endowment’s Property and Real Estates.

______RPF- Augst 2005 ____ وزارة الكهرباء Ministry of Electricity 27 المؤسسة العامة للكهرباء Public Electricity Corporation مشروع تعزيز قطاع الكهرباء Power Sector Support Project

Annex – 6 –

Land Acquisition Plan and Compensation Monitoring Form

Governorate______Names of Communes ______

Name of grid ______Length of grid in meters ______

Table A: Summary information of Land Acquisition Description of Land Type of land Comments Parcel Title Area (in Owner name & User name (if No No sq. meters national ID card different from number owner) and ID card number

Total Sq Meters

Table B: Summary Information on Compensation for Expropriation Expropriation Compensation to Compensation to Total Number of Owners users compensation appeals Parcel No Expropriation Expropriation Number Amount Number Amount payable for expected Comments Decree No. Date of awarded of renters awarded lot owners

Total No. Total Total Total Total Total amount Total Decrees Number amount Number amount payable Number

______RPF- Augst 2005 ____ وزارة الكهرباء Ministry of Electricity المؤسسة العامة للكهرباء Public Electricity Corporation مشروع تعزيز قطاع الكهرباء Power Sector Support Project ______

Annex – 7 –

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