Environmental Monitoring Report

Semi-annual Report

Project Number: 50059-002 Loan/Grant Number: L3542 Period covered: Jul-Dec 2019

NEP: Power Transmission and Distribution Efficiency Enhancement Project

Prepared by Electricity Authority Submission date:15 January 2020

This Environmental Monitoring Report is documents owned by 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 geographical are in this document, the Asian Development Bank does not intend to make any judgement as to the legal or other status of any territory or area.

Environmental Safeguard Monitoring Report Semi-annual Report From July, 2019 to December, 2019

NEPAL: POWER TRANSMISSION AND DISTRIBUTION EFFICIENCY ENHANCEMENT PROJECT Loan: 3542

Submitted To: Asian Development Bank Nepal Resident Mission Metropark,

Submitted By: Nepal Electricity Authority Project Management Directorate , Kathmandu

Prepared By: Power Grid Corporation of India Ltd. in association with PricewaterhouseCoopers Pvt. Ltd. (India) and Jade Consult Pvt. Ltd. Project Supervision Consultant

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

Semi-Annual Report July-December, 2019 Environmental Safeguard Monitoring Report

Currency Equivalents

31 December2019 Currency unit – Nepalese Rupee (NRs) NRs. 1.00 = $ 0.0087443162 US $ 1.00 = NRs. 114.36

PTDEEP i NEA-PSC Semi-Annual Report July-December, 2019 Environmental Safeguard Monitoring Report Executive Summary Asian Development Bank (ADB) approved Power Transmission and Distribution Efficiency Enhancement Project (PTDEEP) to enhance the transmission and distribution system and improve reliability and quality of electric supply in the . This project is loaned project of ADB and the project commissioning date is December 2021. Nepal Electricity Authority (NEA) will serve as the Executing Agency (EA) and will implement all the activities under the Asian Development Bank loan through its Project Management Directorate (PMD). The project will contribute to Nepal’s distribution system strengthening in the Kathmandu Valley and other major urban centers by scaling up distribution system efficiency and reliability, facilitating adequate power supply to meet ever-growing energy needs of the valley, increasing service reliability of the utility and building capacity for the overall distribution system development. The Investment component and activities to be included in the project are:  Sub-project 1: Kathmandu Valley Transmission Capacity Reinforcement project ̵ Construction of new (132/22/11 kV GIS) substation at Mulpani ̵ Construction of new (132/22/11 kV GIS) substation at Phutung ̵ Construction of new (132/22/11 kV) Gas Insulated Switchgear (GIS) substation at Chapagaun  Sub-project 2: and Changunarayan Substation Construction Project o Construction of new (220/132/11kV) gas insulated substation (GIS) at Lapsiphedi. o Construction of new gas insulated substations (132/11kV) at Changunarayan o Construction of new (220 kV GIS) at substation Barhabise

 Sub-project 3: Enhancement of Distribution networks in Kathmandu Valley o Enhancement of Distribution networks in Central and Northern Region of Kathmandu Valley o Enhancement of Distribution networks in Eastern and Southern Region of Kathmandu Valley o Enhancement of Distribution networks in Western Region of Kathmandu Valley

 Sub-project 4: Delivery of Distribution Transformers

 Sub-project 5: Enhancement of Distribution Networks in Major Urban Centers of Nepal o Enhancement of Distribution Networks in Major Urban Centers in Eastern Region of Nepal o Enhancement of Distribution Networks in Major Urban Centers in Western Region of Nepal o Enhancement of Distribution Networks in Major Urban Centers in Central Region of Nepal Under the provision of Environmental Protection Act (EPA), 1996, Environmental Protection Rules (EPR), 1997 of Government of Nepal (GoN) and ADB Safeguard Policy Statement, 2009 Initial Environmental Examination (IEE) has been conducted for the substations of subproject 1 and 2 and approved by the concern authorized body. After the approval of environmental assessment i.e. IEE, subproject 1 and 2 of the project entered in the implementation phase. Land acquisition has been completed except Chapagaun substation. However, Compensation for Mulpani SS, Changunarayan SS and Lapsiphedi SS are under progress (major part completed). Land acquisition for the Chapagaun substation is in the process of land price negotiation. Due to the problems encountered during land acquisition for Chapagaon SS and alternate site at Harsiddhi,

PTDEEP ii NEA-PSC Semi-Annual Report July-December, 2019 Environmental Safeguard Monitoring Report location of the substation is likely to be shifted to 11kV Thimi Switching substation. Counter survey, site levelling has been completed for Changunarayan, Mulapani and Phutung SS. But site levelling work is ongoing for Lapsiphedi SS. Environmental Management Plan (EMP) has been prepared to avoid, minimize and mitigate potential negative impacts of the project and will be implemented in all stages (pre-construction, construction and operation & maintenance) of the project. Currently project activities are in different stages of document related prerequisites, land acquisition process, design and survey work, contour survey, site leveling works and approval of design drawing. All the project activities will be carried out in compliance with Environmental Management Plan (EMP). Compliance status will be updated on further reports with the progress on construction activities. Regular monitoring work will be carried out in order to make effective implementation. Environmental safeguard related project activities are in compliance with covenants as regular follow up actions are being taken. The Grievance Redress Committees (GRCs) have been established in different subprojects of PTDEEP and few grievances from affected population have already been recorded. The project manager forms GRC at district level for major grievances and project contractor and engineer address minor grievance at project site. Till date, thirteen grievances regarding environmental and social issues have been recorded. So far, 2 grievances are resolved and 1 grievance is partially resolved. Resolution of the 8 grievances is under process. However, remaining 2 grievances are basically unfeasible demand by the affected persons (APs). Monitoring work should be carried out in time. GRC is formed at all subproject sites. Project to ensure recording of grievances and respond as soon as possible. The report intends to measure and demonstrate the compliance of various project activities with EMP and applicable regulatory framework.

PTDEEP iii NEA-PSC Semi-Annual Report July-December, 2019 Environmental Safeguard Monitoring Report

ABBREVIATIONS AND ACRONYMS ADB Asian Development Bank AIDS Acquired Immune Deficiency Syndrome AP Affected People BOD Biological Oxygen Demand CBO Community Based Organization DoED Department of Electricity Development EMP Environmental Monitoring Plan EMR Environmental Monitoring Report EHSMP Environmental Health and Safety Management Plan FGL Formation Ground Levelling FY Fiscal Year GIS Gas Insulated Substation GoN Government of Nepal GRC Grievance Redress Committee GRM Grievance Redress Mechanism Ha Hectare HH Household HIV Human Immune deficiency Virus IEE Initial Environment Examination kV Kilo Volt KVDA Kathmandu Valley Development Authority NEA Nepal Electricity Authority NGO Non-governmental Organization NPR Nepalese Rupees OHS Occupation Health and Safety OPGW Optical Ground Wire PM Project Manager PMD Project Management Directorate PTDEEP Power Transmission and Distribution Efficiency Enhancement Project RoW Right of Way RP Resettlement Plan R&R Rehabilitation and Resettlement

SF6 Sulphur Hexafluoride SPS Safeguard Policy Statement SS Substation US United States

PTDEEP iv NEA-PSC Semi-Annual Report July-December, 2019 Environmental Safeguard Monitoring Report Tables of Content Executive Summary ...... ii Tables of Content ...... v List of Tables ...... v List of Figure ...... v List of Annex: ...... vi 1. Background ...... 1 1.1. Project Description ...... 1 1.2. Project Progress Status and Implementation Schedule ...... 2 1.2.1. Progress Status ...... 2 1.2.2. Implementation Schedule ...... 5 2. Compliance to National Regulations ...... 7 3. Compliance to Environmental Covenants from ADB Loan Agreement ...... 7 4. Compliance to Environmental Management Plan ...... 7 5. Safeguards Monitoring Results and Unanticipated Impacts ...... 10 6. Implementation of Grievance Redress Mechanism and Complaints Received from Stakeholders ...... 24 6.1. Grievance Redress Mechanism ...... 24 7. Major Issues ...... 26 7.1. Lapshiphedi, Changunarayan Substation Construction Project ...... 26 7.2. Kathmandu valley Transmission Line Reinforcement Construction Project ...... 26 7.3. Khimti-Bahrabise 200/400 kV Transmission Line Substation Project ...... 26 8. Conclusion and Recommendations ...... 26 8.1. Conclusion ...... 26 8.2. Recommendations ...... 27

List of Tables Table 1. 1: Details of Sub-projects and its components ...... 1 Table 1. 2: Project progress status ...... 2 Table 1.3: Progress status of Substation ...... 5 Table 1. 4: Implementation Schedule ...... 6 Table 4. 1: Compliance status to Environmental Management Plan ...... Error! Bookmark not defined. Table 5.1: Activities and mitigation measures during Pre-construction Phase…………………...10 Table 5. 2: Construction activities and theri mitigation measures Error! Bookmark not defined. Table 6. 1: Environmental related recorded Grievances ...... 24

List of Figure Figure 1: Monthly PM2.5 for 2018-19 ...... 10 Figure 2: Air Pollution Data of Kathmandu for 2019-12-22 ...... 11

PTDEEP v NEA-PSC Semi-Annual Report July-December, 2019 Environmental Safeguard Monitoring Report

Figure 3: Air quality index map for Project Areas March 15, 2018 at 10:00AM ...... 11 Figure 4: Legend of Air Quality Index Map ...... 12

List of Annex: Annex 1: Status of compliance with loan and grants covenants Annex 2: Status of environmental safeguards during planning stage Annex3: Status of environmental safeguards during implementation stage

PTDEEP vi NEA-PSC Semi-Annual Report July-December, 2019 Environmental Safeguard Monitoring Report

1. Background The Government of Nepal (GoN) and the Asian Development Bank (ADB) negotiated the loan on 19th May, 2017 for Power Transmission and Distribution Efficiency Enhancement Project (PTDEEP) and loan agreement was signed on 29th June 2017. The project is expected to be completed by December 2021. The project will contribute to Nepal’s distribution system reinforcement in the Kathmandu Valley and other major urban centers by scaling up distribution system efficiency and reliability, facilitating adequate power supply to meet ever-growing energy needs of the valley, increasing service reliability of the utility and building capacity for the overall distribution system development. The main aim of the Power Transmission and Distribution Efficiency Enhancement Project (PTDEEP) is to enhance the distribution capacity and improve reliability and quality of electricity supply in the Kathmandu valley by reducing distribution system overloads and technical and commercial losses. This will be done through strengthening of the transmission grid capacity, increase capacity, rehabilitating the distribution network in the project area and enhancing operational and financial performance of NEA distribution centers. 1.1. Project Description The project activity comprises (i) construction of six new substations, (ii) upgrading and burial of distribution lines and other network components to the maximum extent possible, (iii) upgrading of overhead distribution lines where burial is not possible, (iv) delivery of distribution transformers, and (v) replacement of conventional meters with smart meters. The PTDEEP project as a whole is categorized in five components. The details of project components along with its associated substation/ Distribution centers are mentioned in Table 1.1.

Table 1. 1: Details of Sub-projects and its components SN Sub-projects Components Substations/ Distribution center S1 Kathmandu Valley o Construction of 3 gas insulated SS1: Mulpani SS Transmission Capacity substation (132/11kV) at: SS2: Phutung SS ̵ Mulpani Reinforcement project SS3: Chapagaun SS ̵ Phutung ̵ Chapagaun & 1 GIS at

S2 Lapsiphedi and o Construction of new SS1: Lapsiphedi SS (220/132/11kV) gas insulated Changunarayan SS2: Changunarayan SS substation (GIS) at Lapsiphedi. substation construction o Construction of new gas SS3: Barhabise SS insulated substation (132/11kV) at project Changunarayan o Construction of new (220kV) substation at Barhabise

PTDEEP 1 NEA-PSC Semi-Annual Report July-December, 2019 Environmental Safeguard Monitoring Report

S3 Enhancement of o Central and Northern Region of DC1: Ratanpark Distribution Networks Kathmandu Valley DC2: Maharajganj o Eastern and Southern Region of DC3: Kuleshwor Kathmandu Valley Kathmandu Valley DC4: Kritipur o Western Region of Kathmandu DC5: Baneshwor Valley DC6: Balaju DC7: S4 Delivery of Distribution o Delivery of Distribution transformers transformers S5 Enhancement of o Eastern Region of Nepal Distribution Networks in o Central Region of Nepal Major Centers of Nepal o Western Region of Nepal

1.2. Project Progress Status and Implementation Schedule 1.2.1. Progress Status Currently, the project has entered the implementation stage. The progress made in the safeguard implementation under different PTDEEP subproject components are summarized on Table 1-2: Table 1. 2: Project progress status

Sub- Sub Works Completed by Level of Fulfillment Works for the proje Components December, 2019 of Plan first half of 2020 ct S1 Kathmandu Valley Transmission Capacity Enhancement Project The contour survey and Site leveling works is soil investigation works carried out. Boundary has been completed at wall not started yet. Mulpani S/S site. Major Design of foundations SS Mulpani equipment drawings like for different Completion of 1 Substation power transformer, GIS equipment/ control civil works. equipment has been room building/ GIS hall approved. Dispatch of to be submitted. power transformer is under process.

The contour survey and Site leveling works is Soil investigation work has carried out. Boundary been completed. Site wall not started yet. leveling work is carried Design of foundations SS Phutung out. Major equipment like for different Completion of civil 2 Substation power transformer, GIS equipment/ control works. equipment drawings has room building/ GIS hall been approved. Dispatch to be submitted. of power transformer is under process.

PTDEEP 2 NEA-PSC Semi-Annual Report July-December, 2019 Environmental Safeguard Monitoring Report

Sub- Sub Works Completed by Level of Fulfillment Works for the proje Components December, 2019 of Plan first half of 2020 ct Clearance of site for Project Construction SS Site location will Chapagaon Handing over of 3rd phase has not begun. 3 be handover to Substation Substation site to Pinggao contractor. is under progress. S2 Lapsiphedi and Changunarayan substation construction project Contour survey and Soil Site leveling under Construction of Investigation works progress. Boundary leveling works, (except plate load test) works not started yet. boundary wall, SS Lapsiphedi have been completed. Site Survey of access road retaining wall, and 1 Substation levelling work is partially completed but design access road. completed (cutting part). drawing yet to be Survey of road approach submitted. Completion of has been completed. foundation works. Site Leveling and contour Construction of Construction of survey works have been retaining wall is almost retaining wall, completed. Soil completed and Gabion drainage works, Changunarayan Investigation works at wall is under process. retaining wall, and S2 Substation Changunarayan S/S has access road. also been completed. Completion of Construction of retaining foundation works. wall is almost completed. Survey works and Commencement of Complete the site Geotechnical Investigation site leveling works, leveling, access S3 Barhabise SS Completed. boundary wall and road, boundary retaining wall wall and retaining wall. Enhancement of Distribution Networks in Central and Northern Region of Kathmandu S3 Valley Detailed Survey work GPRS Survey and Initiate the field completed. construction material works, fix the line route for Central and testing is under executing works. Northern Region progress. Completion of soil investigation works Detailed Survey work GPRS Survey and Initiate the field completed. Material testing is works, fix the line route for Eastern and under progress. executing works. Southern Region Completion of soil investigation works Evaluation report sent to Project Construction Western Region ADB for concurrence. phase has not begun S4 Delivery of Distribution Transformers

PTDEEP 3 NEA-PSC Semi-Annual Report July-December, 2019 Environmental Safeguard Monitoring Report

Sub- Sub Works Completed by Level of Fulfillment Works for the proje Components December, 2019 of Plan first half of 2020 ct Supply of Technical evaluation is Project Construction Distribution under process phase has not begun Transformers S5 Enhancement of Distribution Networks in Major Urban Centers of Nepal Demand Forecast, Demand Eastern Region system studies and Forecast, system (Biratnagar, GIS mapping completed. DPR preparation is studies and DPR Dharan, Itahari) under process preparation Central Region Draft DPR for (Janakpur, GiS Mapping Completed, Bhaktpur is submitted Hetauda, Birgunj, Demand load forecasting Demand Forecast, Demand Forecast Kalaiya, Jitpur- for Bhaktapur, Lalitpur and system studies and and DPR Simara, Bharatpur is completed. DPR preparation for preparation Bharatpur, Load Flow analysis for balance urban center Lalitpur, Bhaktpur is completed is under process Bhaktapur) Western Region (Pokhara, Demand Forecast, Demand Lekhnath, Butwal, system studies and GIS Mapping Completed. Forecast and Tulsipur, Gorahi, DPR preparation is DPR preparation Nepalgunj and under process Dhangadi)

PTDEEP 4 NEA-PSC Semi-Annual Report July-December, 2019 Environmental Safeguard Monitoring Report

Table 1.3: Progress status of Substation 1.2.2. Implementation Schedule Sl. Name of the Types of Land & Area No. Status of Compensation Status of No. Substation (acre/ ha.) of disbursement (No. of APs) Possession Remarks Govt. Private APs R&R benefit Land cost 3 APs have yet to NPR Compensation receive the 1 Mulpani SS NA 0.5960 ha 21 206967520 under process compensation amount. NPR All compensation 2 Phutung SS NA 0.8123 ha 10 Completed 218,618,750 has been paid Problems encountered during land acquisition R&R benefits Compensation and location of 3 Chapagaon SS 31 shall be provided NA is not substation is likely as per the distributed yet to be shifted to provisions given 11kV Switching in the approved substation. entitlement 2 APs are yet to NPR Compensation 4 Barhabise SS NA 7.1593 ha 50 Matrix of receive payment of 132,649,218.75 under process Resettlement compensation. Plan. 5 APs have not Disbursement of cleared their R&R benefit ownership of land shall be started and disbursement NPR Compensation of their payment is 5 Lapsiphedi SS 0.174 ha 9.507 ha 44 shortly. 390009375 under process in process. In the last six month, 1 AP received the compensation amount. 4 APs are yet to NPR Compensation receive payment of 6 Changunarayan SS 0.0715.28ha 3.937 ha 49 316926562.5 under process compensation. . The implementation schedule for the commissioning of this project is presented in below.

PTDEEP 5 NEA-PSC Semi-Annual Report July-December, 2019 Environmental Safeguard Monitoring Report

Table 1. 4: Implementation Schedule

PTDEEP 6 NEA-PSC Semi-Annual Report July-December, 2019 Environmental Safeguard Monitoring Report

2. Compliance to National Regulations According to Environmental Protection Act (EPA), 1996 and Environmental Protection Rules (EPR), 1997 of Government of Nepal (GoN) and ADB Safeguard Policy Statement, 2009, Initial Environmental Examination (IEE) is required for the substation project which requires the private land for the project activities. However, if the transmission line passes from protected areas (national park, wildlife reserves, conservation areas including Chure region), environmental impact assessment (EIA) is mandatory according to schedule 2 of EPR 1997. Moreover, considering National Energy Crisis Alleviation and Electricity Development Decade concept note, Ministry of Energy, Water Resources and Irrigation has issued "IEE and EIA Working Procedures for Hydropower and Transmission Line Project, 2073 BS" effective from 2073 Kartik 4 (20 October 2016) to simplify and expedite environmental assessment approval process by assigning authority to Department of Electricity Development (DoED). The preparation of IEE had been completed for the Lapsiphedi and Changunarayan substations from another project (Tamakoshi-Kathmandu TLP) and achieved approval from the authorized body. IEE study doesn't need to be prepared for Mulpani Substation, Phutung Substation & Chapagaun Substation under the subproject Kathmandu Valley Transmission Capacity Enhancement Project. As this project is under category B according to ADB policy, combined IEE for all 6 substations has been prepared which is enough for this project. According to Environmental Protection Rule 1997, if the substation area lies in conservation area, protected area, and its buffer zone, substation area needs to acquire 10 to 50 hectares of forest area in hilly region and if the construction of 220 kV of greater than 220 kV substation, it requires IEE study to be conducted. 3. Compliance to Environmental Covenants from ADB Loan Agreement Environmental safeguard related project activities are in compliance with covenants as given in Annex 1. 4. Compliance to Environmental Management Plan The EMP has been developed as part of the environmental assessment to avoid, minimize, and mitigate potential negative impacts of the Project. The EMP comprises routine environmental monitoring to support proactive mitigation of any potential impact from construction and operations. The environmental safeguard consultant from project supervision is regularly visiting the project sites to monitor the environmental compliances and is conducting regular meeting with project officials. The EMP will be implemented in three stages of the project: i. Pre-construction, ii. Construction, iii. Operation and maintenance. Overall Environmental Compliance will be followed as the construction work begins. Currently, design, survey and soil test is under progress at Mulpani and Phutung substation. Status of environmental safeguards during planning stage and implementation stage is attached in Annex 2 and 3 respectively. Based on the approved EMP, the EHSMP report prepared by LCSCP contractor has been reviewed by PSC and observations/suggestions shared with NEA. Details of compliance to environmental management plan are provided in Table 4-1.

PTDEEP 7 NEA-PSC Semi-Annual Report July-December, 2019 Environmental Safeguard Monitoring Report

Table 4-1: Compliance status to Environmental Management plan

Activity Environmental Issues Compliance Status Remarks Pre-construction Stage Being Complied with: Land acquisition process has been completed in Phutung. In other Impacts on potentially Regulatory s/s (except Chapagaun S/S) Regulatory sensitive sites: potential clearance and compensation distribution is clearance is loss of productive Permitting completed to most of APs. For not applicable. agricultural the restoration of income generation, training will be conducted in line with RP. Baseline of air quality Complied with: Pre-project Environmental Impact on Air Quality at monitoring in level air quality monitoring had Monitoring project sites pre project been carried out. phase is given in section 5. Construction Phase Inadequate/ unsafe Construction working condition Status to be incorporated after stage Environmental construction related work environmental impairment at project progresses monitoring sites Being Complied with: Land acquisition process has been Impact on completed in Phutung. In other Environmentally s/s (except Chapagaun S/S) Compensatory sensitive site potential compensation distribution is clearance loss of productive completed to most of APs. For agricultural and trees the restoration of income generation, training will be conducted in line with RP. Physical construction: Worker/ Operator and Status to be incorporated after manual labor local safety (Noise) construction related work and Equipment wear and progresses mechanized tear construction Injury and sickness of workers and members Status to be incorporated after Health and of the public construction related work safety Potential BOD and progresses Fecal coliform contamination Waste water from Construction Status to be incorporated after maintenance may equipment construction related work cause soil and water maintenance progresses contamination

PTDEEP 8 NEA-PSC Semi-Annual Report July-December, 2019 Environmental Safeguard Monitoring Report

Activity Environmental Issues Compliance Status Remarks Physical construction: Dust, exhaust, and Status to be incorporated after manual labor noise emissions from construction related work and construction equipment progresses mechanized construction Storage of Possible spills resulting Status to be incorporated after chemicals and in contamination of soil, construction related work any hazardous water, and air progresses materials Localized soil and water Construction pollution due to Status to be incorporated after waste inadequate construction related work management management and progresses control Inadequate/unsafe working conditions Status to be incorporated after Environmental Environmental construction related work monitoring impairment at project progresses sites, Impact in air quality at project sites. As noted by International Not complied in all substation. Spoil Inadequate and unsafe Expert during It is in the process for Management for the construction site visit on compliances. October 22 and 23, 2019 In Changunarayan site, As noted by Unsafe working temporary arrangement made International conditions Drainage for rain water drainage. In Expert during Environmental Management other substation sites, site visit on impairment at project drainage management is to be October 22 sites done. and 23, 2019 Operation and Maintenance Phase Routine Potential disturbance to Status to be incorporated after operations and other utility functions Operation and Maintenance maintenance and vehicular traffic. Phase commence Status to be incorporated after Injury or death to the Electric shock Operation and Maintenance workers and public Phase commence Contamination of Status to be incorporated after Oil spillage land/nearby water Operation and Maintenance bodies Phase commence Status to be incorporated after SF6 Fugitive emissions Operation and Maintenance management Phase commence

PTDEEP 9 NEA-PSC Semi-Annual Report July-December, 2019 Environmental Safeguard Monitoring Report 5. Safeguards Monitoring Results and Unanticipated Impacts The monitoring works begins along with construction activities. Currently, design work is in progress for all the substation sub projects (except Chapagaon where land acquisition is still under process). Contract has been awarded for smart meters. Procurement process is underway for distribution transformer. The result of pre project air quality monitoring is given below.

The concentration of PM2.5 of Kathmandu valley was measured in 2018-2019 and illustrated in graph below. The monthly average concentration of PM2.5 was found comparatively higher in winter (Nov 2019) 171 µg/m3 and lower in monsoon season 16µg/m3 (Oct2019). Detail is in figure 1.

Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

WHO 24 Hour Mean µg/m³ WHO Annual Mean µg/m³

Figure 1: Monthly PM2.5 for 2018-19 Source link: http://aqicn.org/city/nepal/kathmandu/ratnapark/

The average hourly concentration of PM2.5 was recorded maximum between 7AM to 12AM peaking at 10AM to 11AM (148.99 µg/m3) and minimum in between 12PM to 6PM with extreme minimum concentration recorded at 3PM to 4PM (15.66 µg/m3). The graph also indicate that concentration of PM2.5 was found quit fluctuating in between 10PM to 3AM.Detail is in below figure 2.

PTDEEP 10 NEA-PSC Semi-Annual Report July-December, 2019 Environmental Safeguard Monitoring Report

Figure 2: Air Pollution Data of Kathmandu for 2019-12-22 Source link: http://aqicn.org/city/nepal/kathmandu/ratnapark/

Based on the legend of Air Quality Index Map, the air quality of project area measured on March 15 was found ranging from 151 to 300 indicating unhealthy to very unhealthy in air pollution level.

Figure 3: Air quality index map for Project Areas March 15, 2018 at 10:00AM

PTDEEP 11 NEA-PSC Semi-Annual Report July-December, 2019 Environmental Safeguard Monitoring Report

Figure 4: Legend of Air Quality Index Map

PTDEEP 12 NEA-PSC Semi-Annual Report July-December, 2019 Environmental Safeguard Monitoring Report

The project construction works will be carried out under these baselines and to reduce further environment quality degradation adequate mitigation measures have been suggested in IEE study report.

Table 5-1: Construction activities and their mitigation measures Sub SN Activities Mitigation Measures Remarks Components S1 Kathmandu Valley Transmission Capacity Enhancement Project Land acquisition process is nearing completion. Fair compensation and R&R benefits are paid as NPR 206967520 has been Land Acquisition per applicable regulations to affected land owners distributed to affected families in transparent way. and 3 AP have not received the compensation amount. Restoration works, soil disposal Land Leveling and Restoration Works, Drainage, Soil Disposal, Tree and tree cutting is not Clearing Cutting applicable. Drainage work is under process. Access Road Up Leveling, Drainage, Stabilization gradation Mulpani SS1 Foundation and Substation Drainage, Leaching of Soil Prevention, Location of Equipment Access Road Project construction phase has Installation commenced. The mentioned Setting up of Provision of Toilets, Drinking Water Facility, mitigation measures are Workers Camps, Drainage, Soak Pits, First Aid Kits, Waste planned. Design of foundations Waste and Hygiene Disposal and Cooking Gas, Facility Setup, Air, for major equipment / control Storage Location minimum 50m away from water Noise and room building/ GIS Hall etc. are source, National Air and Noise Standards Chemicals Issue yet to be submitted. Foundation, footing Prevention of leaching/ leaking by soil runoff and and Reinforced oil leakage from digging machine by periodic Cement Concrete maintenance checks Works

PTDEEP 13 NEA-PSC Semi-Annual Report July-December, 2019 Environmental Safeguard Monitoring Report

Sub SN Activities Mitigation Measures Remarks Components Civil Construction Clearing up of concrete, wooden waste and metal works on scrap after each day’s work and disposal in foundation, compliance with government environmental Pathways, Control regulation. Inclusion of Fire Control Equipment Room, Cable Trays Switchyard earthing Solid Waste Management and adequate drainage and structures, civil to prevent stagnation of water work foundation Unloading and Access road width to be maintained to erection of accommodate vehicles transporting transformers Erection of Substation OHS Compliance. Adequate Survey to minimize Components, the use of adjacent agriculture land requirement transformers bays, for incoming and outgoing lines. Also adequately line bays, incoming compensated outgoing lines, terminating gantries Control Room, Transformer oil Proper drainage facilities and impervious areas filling and storage with storage Capacity of 110% spare oil. Together battery as well as with SF Leakage prevention and detection hazardous 6 equipment. Inclusion of firefighting equipment chemicals, SF6 leakage Charging Power To prevent leakage of transformer oil and Transformer, sparking, concrete lined pits are to be erected to Auxiliary Power contain them and firefighting equipment are to be Supply maintained

Communication, Adequate safety measures to be included during Power line Carrier installation of communication equipment Communication

PTDEEP 14 NEA-PSC Semi-Annual Report July-December, 2019 Environmental Safeguard Monitoring Report

Sub SN Activities Mitigation Measures Remarks Components Connecting Soil slopes to be restored. Human environment, terminating lines to health and safety matters to be taken into substation consideration. Land acquisition is completed. Fair compensation and R&R benefits as per NPR 218,618,750 has been Land Acquisition applicable regulations paid to all affected land distributed to all (10) Affected owners in transparent way. families. Land Leveling and Restoration Works, Drainage, Soil Disposal, Tree Clearing Cutting Access Road Leveling, Drainage, Stabilization Upgradation Foundation and Drainage, Leaching of Soil Prevention, Location of Equipment Access Road Installation Setting up of Provision of Toilets, Drinking Water Facility, Workers Camps, Drainage, Soak Pits, First Aid Kits, Waste Waste and Hygiene Disposal and Cooking Gas, Phutung SS2 Facility Setup, Air, Substation Storage Location minimum 50m away from water Project construction phase has Noise and source, National Air and Noise Standards commenced. The mentioned Chemicals Issue mitigation measures are Foundation, footing Prevention of leaching / leaking by soil runoff and planned. Design of foundations and Reinforced oil leakage from digging machine by periodic Cement Concrete for different equipment / control maintenance checks Works room building / GIS Hall, etc. Civil Construction are yet to be submitted. Clearing up of concrete, wooden waste and metal works on scrap after each day’s work and disposal in foundation, compliance with government environmental Pathways, Control regulation. Inclusion of Fire Control Equipment Room, Cable Trays Switchyard earthing Solid Waste Management and adequate drainage and structures, civil to prevent stagnation of water work foundation

PTDEEP 15 NEA-PSC Semi-Annual Report July-December, 2019 Environmental Safeguard Monitoring Report

Sub SN Activities Mitigation Measures Remarks Components Access Road having erosional Unloading and Access road width to be maintained to and stability issues and cannot erection of accommodate vehicles transporting accommodate such vehicles transformers without retention intervention Erection of Substation OHS Compliance. Adequate Survey to minimize Components, the use of adjacent agriculture land requirement transformers bays, for incoming and outgoing lines. Also adequately line bays, incoming compensated outgoing lines, terminating gantries Control Room, Transformer oil Proper drainage facilities and impervious areas filling and storage with storage Capacity of 110% spare oil. Together battery as well as with SF Leakage prevention and detection hazardous 6 equipment. Inclusion of firefighting equipment chemicals, SF6 leakage Charging Power To prevent leakage of transformer oil and Transformer, sparking, concrete lined pits are to be erected to Auxiliary Power contain them and firefighting equipment are to be Supply maintained Communication, Adequate safety measures to be included during Power line Carrier installation of communication equipment Communication Connecting Soil slopes to be restored. Human environment, terminating lines to health and safety matters to be taken into substation consideration The problem encountered Fair compensation and R&R benefits as per during land acquisition so Chapagaun SS3 Land Acquisition applicable regulations shall be paid to all affected location of substation is likely to Substation land owners in transparent way. be shifted to 11kV Switching Substation at Thimi.

PTDEEP 16 NEA-PSC Semi-Annual Report July-December, 2019 Environmental Safeguard Monitoring Report

Sub SN Activities Mitigation Measures Remarks Components Land Leveling and Restoration Works, Drainage, Soil Disposal, Tree Clearing Cutting Access Road Leveling, Drainage, Stabilization Upgradation Foundation and Drainage, Leaching of Soil Prevention, Location of Equipment Access Road Installation Setting up of Provision of Toilets, Drinking Water Facility, Workers Camps, Drainage, Soak Pits, First Aid Kits, Waste Waste and Hygiene Disposal and Cooking Gas Facility Setup, Air, Storage Location minimum 50m away from water Noise and source, National Air and Noise Standards Chemicals Issue Foundation, footing Prevention of leaching / leaking by soil runoff and and Reinforced oil leakage from digging machine by periodic Cement Concrete Project construction phase has maintenance checks Works not commenced. Civil Construction Clearing up of concrete, wooden waste and metal works on scrap after each day’s work and disposal in foundation, compliance with government environmental Pathways, Control regulation. Inclusion of Fire Control Equipment Room, Cable Trays Switchyard earthing Solid Waste Management and adequate drainage and structures, civil to prevent stagnation of water work foundation Unloading and Access road width to be maintained to erection of accommodate vehicles transporting transformers Erection of OHS Compliance. Adequate Survey to minimize Substation the use of adjacent agriculture land requirement Components, for incoming and outgoing lines. Also adequately transformers bays, compensated line bays, incoming

PTDEEP 17 NEA-PSC Semi-Annual Report July-December, 2019 Environmental Safeguard Monitoring Report

Sub SN Activities Mitigation Measures Remarks Components outgoing lines, terminating gantries

Control Room, Transformer oil Proper drainage facilities and impervious areas filling and storage with storage Capacity of 110% spare oil. Together battery as well as with SF Leakage prevention and detection hazardous 6 equipment. Inclusion of firefighting equipment chemicals, SF6 leakage Charging Power To prevent leakage of transformer oil and Transformer, sparking, concrete lined pits are to be erected to Auxiliary Power contain them and firefighting equipment are to be Supply maintained

Communication, Adequate safety measures to be included during Power line Carrier installation of communication equipment Communication

Connecting Soil slopes to be restored. Human environment, terminating lines to health and safety matters to be taken into substation consideration S2 Lapsiphedi and Changunarayan Substation Construction Project Land acquisition for Lapsiphedi SS is nearing completion. 39 Fair compensation and R&R benefits as per APs have been compensated Land Acquisition applicable regulations shall be paid to all affected Lapsiphedi (NRs 390009375) and 5 APs SS1 land owners in transparent way. Substation are in the process of compensation. Land Leveling and Restoration Works, Drainage, Soil Disposal, Tree Clearing Cutting

PTDEEP 18 NEA-PSC Semi-Annual Report July-December, 2019 Environmental Safeguard Monitoring Report

Sub SN Activities Mitigation Measures Remarks Components In relation to this 3 km, locals have demanded supportive funds for another 15km road in Access Road the village in addition to support Leveling, Drainage, Stabilization Upgradation for local skill development, installation of 2 drinking water tanks, local health facilities, jobs and monastery. Foundation and Drainage, Leaching of Soil Prevention, Location of Equipment Access Road Installation Setting up of Provision of Toilets, Drinking Water Facility, Workers Camps, Drainage, Soak Pits, First Aid Kits, Waste Waste and Hygiene Disposal and Cooking Gas, Facility Setup, Air, Storage Location minimum 50m away from water Noise and source, National Air and Noise Standards Chemicals Issue Foundation, footing Prevention of leaching / leaking by soil runoff and and Reinforced Project construction phase has oil leakage from digging machine by periodic Cement Concrete commenced. The mentioned maintenance checks Works mitigation measures are Civil Construction planned. Clearing up of concrete, wooden waste and metal works on scrap after each day’s work and disposal in foundation, compliance with government environmental Pathways, Control regulation. Inclusion of Fire Control Equipment’s Room, Cable Trays Switchyard earthing Solid Waste Management and adequate drainage and structures, civil to prevent stagnation of water work foundation Unloading and Access road width to be maintained to erection of accommodate vehicles transporting transformers

PTDEEP 19 NEA-PSC Semi-Annual Report July-December, 2019 Environmental Safeguard Monitoring Report

Sub SN Activities Mitigation Measures Remarks Components Erection of Substation OHS Compliance. Adequate Survey to minimize Components, the use of adjacent agriculture land requirement transformers bays, for incoming and outgoing lines. Also adequately line bays, incoming compensated outgoing lines, terminating gantries Control Room, Transformer oil Proper drainage facilities and impervious areas filling and storage with storage Capacity of 110% spare oil. Together battery as well as with SF Leakage prevention and detection hazardous 6 equipment. Inclusion of firefighting equipment chemicals, SF6 leakage Charging Power To prevent leakage of transformer oil and sparking Transformer, concrete lined pits are erected to contain them and Auxiliary Power firefighting equipment are maintained Supply Communication, Adequate safety measures included during Power line Carrier installation of communication equipment Communication Connecting Soil slopes to be restored. Human environment, terminating lines to health and safety matters to be taken into substation consideration Land Acquisition Almost in complete stage. Out of 49 APs, Fair compensation and R&R benefits as per 4 APs are yet to receive Land Acquisition applicable regulations shall be paid to all affected Changunaray payment of compensation. NPR SS2 land owners in transparent way. an Substation 316926562.5 has been disbursed. Land Leveling and Restoration Works, Drainage, Soil Disposal, Tree Clearing Cutting

PTDEEP 20 NEA-PSC Semi-Annual Report July-December, 2019 Environmental Safeguard Monitoring Report

Sub SN Activities Mitigation Measures Remarks Components Access Road Leveling, Drainage, Stabilization Upgradation Foundation and Drainage, Leaching of Soil Prevention, Location of Equipment Access Road Installation Setting up of Provision of Toilets, Drinking Water Facility, Workers Camps, Drainage, Soak Pits, First Aid Kits, Waste Waste and Hygiene Disposal and Cooking Gas, Facility Setup, Air, Storage Location minimum 50m away from water Noise and source, National Air and Noise Standards Chemicals Issue Foundation, footing Prevention of leaching / leaking by soil runoff and and Reinforced oil leakage from digging machine by periodic Cement Concrete maintenance checks Project construction phase has Works commenced. The mentioned Civil Construction Clearing up of concrete, wooden waste and metal mitigation measures are works on scrap after each day’s work and disposal in planned. Construction of foundation, compliance with government environmental Pathways, Control Retaining wall has been regulation. Inclusion of Fire Control Equipment Room, Cable Trays completed and Gabion wall is Switchyard earthing under progress. Solid Waste Management and adequate drainage and structures, civil to prevent stagnation of water work foundation Unloading and Access road width to be maintained to erection of accommodate vehicles transporting transformers Erection of Substation OHS Compliance. Adequate Survey to minimize Components, the use of adjacent agriculture land requirement transformers bays, for incoming and outgoing lines. Also adequately line bays, incoming compensated outgoing lines, terminating gantries

PTDEEP 21 NEA-PSC Semi-Annual Report July-December, 2019 Environmental Safeguard Monitoring Report

Sub SN Activities Mitigation Measures Remarks Components Transformer oil filling and storage Proper drainage facilities and impervious areas battery as well as with storage Capacity of 110% spare oil. Together hazardous with SF6 Leakage prevention and detection chemicals, SF6 equipment. Inclusion of firefighting equipment leakage Charging Power To prevent leakage of transformer oil and Transformer, sparking, concrete lined pits are to be erected to Auxiliary Power contain them and firefighting equipment are to be Supply maintained

Communication, Adequate safety measures to be included during Power line Carrier installation of communication equipment Communication

Connecting Soil slopes to be restored. Human environment, terminating lines to health and safety matters to be taken into substation consideration S3 Enhancement of Distribution Networks in Central and Northern Region of Kathmandu Valley Under procurement Process Fixing of Safety and distance from human reach to be Distribution maintained. Lines through private and cultivated Planned to mitigate. Transformers and land need to be avoided. Ensure physical and Accessories cultural resources are not adversely affected. Occupational Safety to be maintained, leakage of machine oil to soil to be avoided. Barricading and Boring holes traffic diversion to the work zone to be maintained. vertically and Noise and vibration to avoid close to sensitive Planned to mitigate. horizontally sites. Soil Management with minimal dust in the ground to be worked with. Spraying of Water three times a day.

PTDEEP 22 NEA-PSC Semi-Annual Report July-December, 2019 Environmental Safeguard Monitoring Report

Sub SN Activities Mitigation Measures Remarks Components Restoration of Warning Sign and covering of exposed areas. Planned to mitigate. excavated site

S4 Delivery of Distribution Transformers Under procurement Process. Under procurement Project Construction phase has Process not begun Fixing of Safety and distance from human reach to be Distribution maintained. Lines through private and cultivated

Transformers and land need to be avoided. Ensure physical and Accessories cultural resources are not adversely affected. Occupational Safety to be maintained, leakage of machine oil to soil to be avoided. Barricading and Boring holes traffic diversion to the work zone to be maintained. vertically and Noise and vibration to avoid close to sensitive horizontally sites. Soil Management with minimal dust in the ground to be worked with. Spraying of Water three times a day. Restoration of Warning Sign and covering of exposed areas. excavated site

S5 Enhancement of Distribution Networks in Major Urban Centers of Nepal

Not applicable as this component does not involve any physical activity

PTDEEP 23 NEA-PSC Semi-Annual Report July-December, 2019 Environmental Safeguard Monitoring Report

6. Implementation of Grievance Redress Mechanism and Complaints Received from Stakeholders 6.1. Grievance Redress Mechanism The project level Grievance Redress Mechanism (GRM) will be established to receive, evaluate and facilitate the resolution of affected people’s concerns, complaints and grievances about the environmental and social issues arising out of the project implementation. A Grievance Redress Committee (GRC) will be formed to ensure that affected peoples (AP) grievances are addressed and to facilitate timely project implementation. Members to be included in the GRC includes representatives from the district level line agencies (Land Revenue Office, Land Measurement Office, Municipality or Village Development Committee, District Development Committee, District Agriculture Office, District Forest Office, and etc.), Community Based Organizations (CBOs)/NGOs in the districts, representatives of affected/ vulnerable households including women, local representatives (e.g. school teachers, health workers, businessmen, local resource persons and etc.), local leaders and other relevant persons. The Project Manager (PM) of NEA’s PMD, will form the GRC at district level to address major grievances and minor grievances will be redressed at the site level through the concerned project engineer and contractor failing which the case will be referred to the GRC. The Grievance Redress Committees (GRC) have been established in different subprojects of PTDEEP and few grievances from affected population have already been recorded. Some of them are also resolved through meaningful consultations and some are in the process of resolving. The details grievances recorded during reporting period along with the responses of the project proponent are presented in below table.

Table 6. 1: Environmental related recorded Grievances SN Submitted Grievances/Requests Response Status Changunarayan Substation 1 Protection of irrigation canal and The project has ensured to protect Partially resolved plants/trees near the entrance location private and public properties. to the substation site (March 2016). Besides, the protection of irrigation canal is remaining in dispute land. 2 Demand for the distribution line by the The Project has provided the cost for Resolved locals. the construction of distribution line to the distribution department of NEA and they are constructing the distribution poles. 3 Construction of access road nearby The project has assured to provide Under Process the substation for the locals to easily certain percentage of cost for the access to temple. construction of access road based on the estimate provided by the locals.

4 Demand of small road access to the The project assured to consider in Under process field side the construction period.

PTDEEP 24 NEA-PSC Semi-Annual Report July-December, 2019 Environmental Safeguard Monitoring Report

Lapsiphedi Substation 1 Widening and improving the existing The project shall ensure widening Under process road linking the project site and main and improving the existing road road at Jarsingpauwa (Jan 2016) linking to main road. The scope of this activity is defined to contractor. - Detailed survey of approach road completed. Construction of access road not yet started 2 Enhancing the existing drinking water The estimate has not been provided Under process supply system brought from about 2 by the local for the enhancement of km above the Lapsiphedi (Jan 2016) existing drinking water supply. 3 (a)Providing the compensation of the (a) Compensation has been fixed Not feasible. lands per Ana 300000, through committee (b)in case of no document of the (b) In case, No document for the land Under process affected land should provide is available with AP. Matter shall be compensation according to the field taken up with Govt. of Nepal and book, appropriate compensation, as approved shall be provided (c)Not applicable as this is not Hydro (c)provide the shares 5000 per Not feasible. generation project as referred by affected household, APs

(d) However local manpower will be (d) providing the job according to skills, given preference according to skill Resolved through contractor. 4 Murali Tiwari and others has No document for the land is Under process demanded for the compensation of the available with AP. Matter shall be land which is been using for the more taken up with Govt. of Nepal and than decades and haven’t got any sort appropriate compensation, as of compensation till the date they approved shall be provided demanded to provide the amount from the social security fund from the project. Phutung Substation 1 Local Inhabitant Request for Vehicle NEA has taken up the matter with Under process Access Road (useful for both the Tarkeshwor Municipality to execute project and the Local inhabitant). work in combine. The meeting with concerned authority is remaining. Mulpani Substation 2 Adjust existing electricity distribution The project will consider this issue Under process lines: in some places as local people in during the project implementation the area has been suffering due to phase. hazard risk of life casualty (Feb 2016)

PTDEEP 25 NEA-PSC Semi-Annual Report July-December, 2019 Environmental Safeguard Monitoring Report 7. Major Issues 7.1. Lapshiphedi, Changunarayan Substation Construction Project  Commencement of civil work (boundary wall, retaining wall and gabion wall drawings already available) at Laphsiphedi site.  Delay in construction of Retaining and Gabion wall along with soil erosion and land instability is likely to impact site and nearby areas.  Incidence of overburden flowing into the nearby field and houses as noticed and reported during visit of Environment/Social safeguard expert in contravention of EMP provisions.  Delay in construction of approach road at Laphsiphedi substation.  Construction of labor camps with basic requirements for the workforce. 7.2. Kathmandu valley Transmission Line Reinforcement Construction Project  Progress is seriously affected due to delay in submission of foundation design / drawings by the Pinggao Group.  Finalization of sub vendor for Control and Relay Panel.  Entry point and associated approach road for Phutung Substation could not be finalized due to objections raised by land owner. Temporary site approach is washed away by rains.  Handing over of site for 3rd station (Chapagaon/alternate) to Pinggao. 7.3. Khimti-Bahrabise 200/400 kV Transmission Line Substation Project  Due to presence of natural spring, there is issue on soil stability. 8. Conclusion and Recommendations 8.1. Conclusion The power transmission and distribution efficiency enhancement project (PTDEEP) is funded by the ADB and the project commissioning date is December 2021. The PTDEEP enhances the distribution capacity and improve reliability and quality of electricity supply in Kathmandu valley. The project comprises five components. Environmental assessment i.e. IEE of the subproject 1 and 2 has been completed and just entered into the implementation phase. Land acquisition of Mulpani and Phutung substation has been completed and land price is under negotiation at Chapagaun substation. Land acquisition has been completed in Phutung SS whereas it is under process at Mulpani, Changunarayan and Lapsiphedi SS. 3 AP out of 21 in Mulpani SS, 4 APs out of 49 in Changunarayan SS and 5 APs out of 44 in Lapsiphedi SS are yet to be compensated. Counter survey, site levelling and soil investigation works have been completed in Changunarayan SS, Mulpani SS and Phutung SS. Contour survey and soil investigation works(except plate load test), site levelling and survey road approach have been completed on Lapsiphedi SS.Land acquisition work of Chapagaon SS is under process. Due to the problem faced during negotiation with land owners, alternate site at Harisiddhi, Lalitpur was explored. However, the cordial solution at Harisiddhi also did not materialize.

Environmental management plan has been developed to minimize potential negative impacts of the project activity. The project activities will be done in compliance to the EMP. Monitoring works should be carried out with construction activities as per EMP. The GRC is established in different subprojects. The main aim of forming GRC is to address grievances of affected peoples and facilitate timely implementation of the project activities. Till date, thirteen grievances regarding

PTDEEP 26 NEA-PSC Semi-Annual Report July-December, 2019 Environmental Safeguard Monitoring Report environmental and social issues have been recorded. So far, 2 grievances are resolved and 1 grievance is partially resolved. Resolution of the 8 grievances are under process. However, remaining 2 grievance is basically unfeasible demand by the affected persons (APs). 8.2. Recommendations This report recommends to carry out project activities in time and meet the targets of first half of 2020. All the project activities at the phase of pre-construction, construction and operation and maintenance should be in compliance with EMP. Regular monitoring of the project activities should be carried out in order to make effective performance and minimize adverse impacts. GRC should collect grievances and respond to their grievances with meaningful consultations.

PTDEEP 27 NEA-PSC Semi-Annual Report July-December, 2019 Environmental Safeguard Monitoring Report

Annex 1: Status of Compliance to Environmental Covenants from ADB Loan Agreement

Responsible Status of Covenants Agencies Compliance Loan 3542 (a) The Borrower shall ensure, and cause NEA to ensure, that the preparation, design, construction, implementation, operation and decommissioning of the Project comply with: (i) all applicable laws a. Complied and regulations of the Borrower relating to environment, health,

and safety; (ii) the Environmental Safeguards; and (iii) all

measures and requirements set forth in the respective IEE and

EMP, and any corrective or preventative actions set forth in a

Safeguards Monitoring Report. NEA/GoN (b) The Borrower shall ensure, and cause NEA to ensure, that (i) no

proceeds of the Loan are used for Works located within the core

and buffer zones of the Kathmandu Valley World Heritage Sites b. To be Complied with potential adverse impact; and (ii) the Department of for enhancement of Archeology of the Borrower participates in the supervision of Distribution Network Works to ensure no adverse impact to the protected heritage sites. (FA-Schedule 5, para 9) Human and Financial Resources to Implement Safeguards Requirements The Borrower shall make available, and NEA to make available, Being Complied necessary budgetary and human resources to fully implement the EMP NEA/GoN and the RP. (FA-Schedule 5, para 13) Safeguards- Related Provisions in Bidding Documents and Works Contract The Borrower shall ensure, and cause NEA to ensure, that all bidding Being Complied documents and contracts for Works contain provisions that require contractors to: (a) Comply with the measures and requirements relevant to the contractor set forth in the IEE, the EMP and the RP (to the extent they concern impacts on affected people during construction), and any corrective or preventive actions set out in a Safeguards Monitoring Report; (b) Make available a budget for all such environmental and social measures; (c) Provide the Borrower with a written notice of any unanticipated environmental, resettlement or indigenous peoples risks or NEA/GoN impacts that arise during construction, implementation or operation of the Project that were not considered in the IEE, the EMP or the RP; (d) Adequately record the condition of roads, agricultural land and other infrastructure prior to starting to transport materials and construction; and (e) Fully reinstate pathways, other local infrastructure, and agricultural land to at least their pre-project condition upon the completion of construction. (FA-Schedule 5, para 14)

Semi-Annual Report July-December, 2019 Environmental Safeguard Monitoring Report

Responsible Status of Covenants Agencies Compliance Safeguards Monitoring and Reporting a. Complied The Borrower shall clause NEA to do the following: (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 and/or social risks and impacts arise during construction, implementation or operation of the Project that were not considered in the IEE, the EMP or the RP, NEA promptly inform ADB of the occurrence of such risks or impacts, with detailed description of the event and proposed corrective action plan; and (c) Report any actual or potential breach of compliance with the measures and requirements set forth in the EMP or the RP promptly after becoming aware of the breach. (FA-Schedule 5, para 15) Prohibited List of Investments The borrower shall ensure, and cause NEA to ensure, that no proceeds of the Loan are used to finance any activity included in the list of NEA/GoN prohibited investment activities provided in Appendix 5 of the SPS. (FA-Schedule 5, para 16) Labor Standards, Health and Safety The Borrower shall ensure, and cause NEA to ensure, that the core labor Being Complied standards and the Borrower’s applicable laws and regulations are complied with during Project implementation. The Borrower shall include specific provisions in the bidding documents and contracts financed by ADB under the Project requiring that the contractors, among other things (a) comply with the Borrower’s applicable labor law and regulations and incorporate applicable workplace occupational safety norms; (b) do not use child labor; (c) do not discriminate workers in respect of employment NEA and occupation; (d) do not use forced labor; and (e) disseminate, or engage appropriate service providers to disseminate, information on the risks of sexually transmitted diseases, including HIV/AIDS, to the employees of contractors engaged under the Project and to members of the local communities surrounding the Project area, particularly women. The Borrower shall strictly monitor compliance with the requirements set forth above and provide ADB with regular reports. (FA-Schedule 5, para 17)

Semi-Annual Report July-December, 2019 Environmental Safeguard Monitoring Report

Annex 2: Status of Environmental Safeguard during planning stage

Name of Project or Remarks Due)

S. N. S. Subproject (Yes/No) (Yes/No) (Yes/No) (Yes/No) (A/B/C/FI) subproject customized (Yes or No)or (Yes GRC is establishedGRC is EARF preparedEARF is applicable) (if ADB approvedADB with EIA/IEE EMP EIA/IEE/DDRwith prepared is EMP Environmentcategory of theproject / Safeguardmonitoring and coordination Environmentalscreening isout? carried (Yes / Under / (Yes Review Not / Due/Over Yet Automated safeguard Automated monitoring system Governmentapproved EIA/IEE withEMP mechanism mechanism established (Yes/No) (Yes / Under / (Yes Review Not / Yet Submitted) in in BOQasan individual item (Yes/No) EMP cost EMP in approved document included is

220 kV Lapsiphedi SS 1 and 132 kV Yes B No Yes Yes Yes No Yes No No Changunarayan S/S Design, Supply and Installation of 132kV GIS 2 Yes B No No Yes No No No No No Substation in Kathmandu Valley Procurement of Plants for Gas Insulated 220kV 3 Barhabise Yes B No Yes Yes Yes No No No No Substation (Design, Supply and Install)

Semi-Annual Report July-December, 2019 Environmental Safeguard Monitoring Report

Note: EIA- Environmental Impact Assessment; IEE- Initial Environmental Examination; DDR- Due Diligence Report; EMP- Environmental Management Plan; GRC- Grievance Redress Committee; BOQ- Bill of Quantity

Semi-Annual Report July-December, 2019 Environmental Safeguard Monitoring Report

Annex 3: Status of Environmental safeguard during implementation phase Compliance to Environmental Management Plan* Grievanc Physical Biological Socio-economic es

Community

structures

are

compensate

Compensatory d / (Y/N) Occupational Health and Safety

(specify) (specify)

Plantation reconstructe (specify) d (progress in

(compliance in %)**in (compliance (compliance %)**in (Y/N) Compliance %)**in % of total Remarks (Y/N) Subproject estimated work)*** implemented

(Y/N) No of grievances resolved (Y/N) Others as EMP per Others as EMP per (Nos.) Others as EMP per Nos of grievances documented (Y/N) No of grievances under processing (Nos.) Spoil Management sanitary and have and used Landslide protection Replanted Labor and Labors are Env compliance Env reporting maintained is Structure 1Structure 2Structure are healthyare Community Community Drainage Management Firewood is used for cooking heating and work campswork Target Safety Gears Corrective Corrective ActionPlans areprepared and insured are sufficientare facilities

220kV Foundation Lapsiphedi SS Works are and 132kV ------not started Changunaray yet. an S/S

132kV GIS Foundation Substation in Works are ------Kathmandu not started Valley yet.

220kV Barhabise Foundation Substation Works are - 50 0 ------(Design, not started Supply and yet. Install

Photo Plate

Semi-Annual Report July-December, 2019 Environmental Safeguard Monitoring Report

Preventive measure adopted against damage due to drain at right Indication of Boundary at Lapsiphedi SS side of Access Road of Changunarayan SS.

Construction of drainage at access road of Chanugunarayan SS Indication of Boundary at Lapsiphedi SS

Semi-Annual Report July-December, 2019 Environmental Safeguard Monitoring Report

Construction of drainage at access road of Chanugunarayan SS Damage on agricultural land due to diversion of drainage for the construction of drain at left side of access road of Changunarayan SS.

Semi-Annual Report July-December, 2019 Environmental Safeguard Monitoring Report

Discussion on environmental and social issues with NEA personnel Construction of drainage at access road of Chanugunarayan SS after site visit Household survey with affected person in Changunarayan area Affected Person of the Mulpani SS area

Formal Consultation with the affected APs and ward chief of Mulpani Formal Consultations with the affected APs in Mulpani SS SS

Site Vist among Consultant team and Contractor to observe site Household survey at Changunarayan area progress /issues at Phutung site

Semi-Annual Report July-December, 2019 Environmental Safeguard Monitoring Report

Household survey in Changunarayan area Household survey in Mulpani area

Household survey in Mulpani area Household survey in Changunarayan area

Semi-Annual Report July-December, 2019 Environmental Safeguard Monitoring Report

Public Consultation in Changunarayan Area Affected Person in Public Consultation in Changunarayan Area

Stakeholders Participating in Public Consultation in Household Survey in Phutung Area Changunarayan Area

Semi-Annual Report July-December, 2019 Environmental Safeguard Monitoring Report

Excavated soil falling down towards the road as well soil erosion at Soil erosion and incursion of sludge to cultivated fields and Lapsiphedi S/S houses in Changunarayan Substation area.