720MW Karot Hydropower Project Pakistan Environmental and Social Impact Assessment Volume I - Non-Technical Summary July 2015 720MW Karot Hydropower Project Pakistan ss SS SS ss ss MM 26 June 2015 Environmental and Social Impact Assessment 720MW Karot Hydropower Project Pakistan Volume I - Non-Technical Summary Environmental and Social Impact Assessment Volume I - Non- JulyTechnical 2015 S Mott MacDonald, Victory House, Trafalgar Place, Brighton BN1 4FY, United Kingdom T +44 (0)1273 365 000 F +44(0) 1273 365 100 W www.mottmac.com 720MW Karot Hydropower Project Pakistan ESIA Volume I - NTS Issue and revision record Revision Date Originator Checker Approver Description A 3 July 2015 K. Murnane M. Maxwell I. Scott Draft B 31 July 2015 M Maxwell I Scott I Scott Final Information class: Standard This document is issued for the party which commissioned it We accept no responsibility for the consequences of this and for specific purposes connected with the above-captioned document being relied upon by any other party, or being used project only. It should not be relied upon by any other party or for any other purpose, or containing any error or omission used for any other purpose. which is due to an error or omission in data supplied to us by other parties. This document contains confidential information and proprietary intellectual property. It should not be shown to other parties without consent from us and from the party which commissioned it. 720MW Karot Hydropower Project Pakistan ESIA Volume I - NTS Contents Chapter Title Page 1 Introduction 1 1.1 Overview _________________________________________________________________________ 1 2 The Project 3 2.1 Why is the Project needed? ___________________________________________________________ 3 3 Managing environmental and social impacts 12 3.1 How was the Project assessed? _______________________________________________________ 12 3.2 How will people and the environment be affected? ________________________________________ 12 3.3 Cumulative impacts ________________________________________________________________ 15 720MW Karot Hydropower Project Pakistan ESIA Volume I - NTS 1 Introduction 1.1 Overview This Non-Technical Summary presents the main findings and conclusions of the Environmental and Social Impact Assessment (ESIA) completed for the proposed 720MW Karot Hydropower Project (HPP) (“the Project”). The ESIA has been prepared in accordance with national legislation, the International Finance Corporation’s Environmental and Social Performance Standards (IFC PS) 2012 and the World Bank’s Environmental, Health and Safety (EHS) Guidelines (2007). The ESIA has also been undertaken in accordance with the requirements of the Pakistan Environmental Protection Act (1997). These international standards and guidelines place emphasis on meeting good international industry practice with more focus on social and health impacts, human and labour rights and stakeholder engagement than the national process might require. The ESIA takes into account the Updated ESIA prepared by Pakistan Environmental Services (Private) Limited (PES) for national permitting purposes that was submitted to the relevant Pakistan Environmental Protection Agencies in January 2015 (PES Updated ESIA 2015), as well as the Environmental Impact Assessment prepared by SMEC in 2009 for the initial Project design. 1.2 What is the Project? The Project will be a 720MW run-of-river hydropower scheme constructed on the Jhelum River that will generate electricity to be fed into Pakistan’s State Grid. The primary components of the Project are: ° A 95.5m high dam at the Karot village on the Jhelum River ° A Powerhouse with four turbines ° A Spillway separate from the dam ° A reservoir, created by the dam, extending approximately 27km upstream of the dam wall The Project will employ 3,500 people, of which approximately 3,000 will be Pakistani many of whom will be local to the area. Karot and Azad Pattan road bridges will be replaced as a result of the Project; Karot due to the closeness of the main construction site and Azad Pattan as a result of flooding from the reservoir. In addition the footbridge at Ain Pana will be submerged as well as sections of the Kahuta-Azad Pattan Road, along the right and left bank of the reservoir, and these will be reconstructed. An overhead transmission line for export of power to a 500kV transmission line will be built by the Pakistan Government (independently of this Project). 1.3 Who is developing the Project? Karot Power Company (Private) Limited (KPCL) is the Project Proponent and is a wholly owned subsidiary of China Three Gorges South Asia Investment Limited (CSAIL). CSAIL is an investment holding company 1 720MW Karot Hydropower Project Pakistan ESIA Volume I - NTS formed in September 2011 to acquire, develop, build, own and operate renewable power generation projects in Pakistan. CSAIL is a wholly owned subsidiary of CWE Investment Corporation (CWEI) who is a wholly owned subsidiary of the state owned China Three Gorges Corporation (CTGC) and serve as its dedicated overseas investment platform. The Project’s design has been developed by an established Project Design Company. The Engineering, Procurement and Construction (EPC) Contract has been awarded to a consortium comprising Yangtze Three Gorges Technology and Economy Development Co., Ltd (TGDC – engineering and construction) and China Machinery Engineering Corporation (CMEC - procurement) (EPC contractor) at the beginning of 2015, who will produce the detailed Project design and construct the Project. The EPC contractor is wholly owned by CTGC. KPCL will operate the Project for 30 years, after which the Project will be transferred to the Government of Pakistan. 1.4 Is there an opportunity to comment on the Project? In addition to the consultation activities that have already occurred, community members and other stakeholders can provide comment on the Project. If you would like to comment on the Project you can contact the Project Proponent at: Project Proponent Information Name of Company Karot Power Company (Private) Ltd Address House No. 05, Street No. 72, F-8/3, Islamabad, Pakistan Telephone +92 51 2287088 E-mail Contact via website (‘Contact Us’ page) Website www.karotpower.com Further information on the Project can be found on the Project website: www.karotpower.com 2 720MW Karot Hydropower Project Pakistan ESIA Volume I - NTS 2 The Project 2.1 Why is the Project needed? The Project is being built in order to increase the supply of electricity being fed into Pakistan’s State Grid. There is a shortage of electricity supply in Pakistan which leads to frequent power cuts. It is estimated that there is a shortfall of electricity supply that ranges from 3,300MW in summer to 7,300MW in the winter. In 2008 Pakistan’s Water and Power Development Authority (WAPDA) launched a National Water Resource and Hydropower Development Programme called Vision 2025. This policy prioritises development of hydropower in Pakistan in order to increase energy supply. Pakistan’s National Power Policy (2013) also outlines the importance of hydropower projects in overcoming Pakistan’s energy shortages. This policy highlights the desire for Pakistan to be self-sufficient in energy generation and to move away from oil based energy generation. The Government of Pakistan sees hydropower as a means of generating affordable electricity for local people. 2.2 Where will the Project be located? The Project is proposed to be built on the Jhelum River in Pakistan, in an area characterised by mountainous terrain and a deep gorge. The Jhelum River forms the boundary between the province of Punjab in the west and Azad Jammu and Kashmir (AJ&K) in the east. The dam will be located near the villages of Karot (Punjab) and Hollar (AJ&K) approximately 55km south-east of Islamabad. The reservoir created by the dam will extend approximately 27km upstream and have a volume of 152million cubic metres (Mm3) at full supply level (FSL) of 461m above sea level. The powerhouse (housing the four turbines) will be located approximately 650m downstream of the dam crest and 300m upstream of the Karot Bridge. The Project location is shown in Figure 2.1. 3 720MW Karot Hydropower Project Pakistan ESIA Volume I - NTS Figure 2.1: Project location Source: Mott MacDonald based on map included in PES Updated ESIA 2015 and SEA 2014 1 The Punjab province, AJ&K, Rawalpindi District as well as the villages of Karot and Hollar are shown in Figure 2.2. Along with other potential hydropower projects on the Jhelum River the Project has been identified as a potential project for development since the early 1980s that could contribute cost-effective energy to the national electricity grid in order to secure the long-term energy needs of Pakistan. 1 Annandale, David D. and Hagler Bailly Pakistan (Pvt) Ltd. 2014. Strategic Environmental Assessment of Hydropower Development in Azad Jammu and Kashmir. Islamabad: IUCN Pakistan 4 720MW Karot Hydropower Project Pakistan ESIA Volume I - NTS Figure 2.2: Villages within the Project Area of Influence Source: Mott MacDonald 2.3 I live near the Project, will I need to relocate? Approximately 49 households in the village of Karot and 25 households in the village of Hollar will be relocated because these houses are too close to the construction site and will be affected by construction of the main Project components as well as construction noise, including blasting and drilling. Filling up the reservoir will affect approximately 116 further households through loss of income or livelihood. Affected communities have been involved in the consultation process to date, and the relocation or compensation of these households will be managed through a Resettlement Action Plan. It is expected that the majority of the affected households will move to other nearby villages, although a small number could relocate to Beor, Kahuta and Islamabad. The Project will pay to move the affected households to comparable properties or provide monetary compensation in order that new houses can be purchased. The Project will result in 78 commercial business structures along the Jhelum River banks being inundated by the reservoir so will lose their income generating abilities.