Initial Environmental Examination August 2012 MFF 0021-PAK: Power Distribution Enhancement Investment Program – Proposed Tranche 3 Prepared by the Islamabad Electric Supply Company for the Asian Development Bank. ISLAMABAD ELECTRIC SUPPLY COMPANY INITIAL ENVIRONMENTAL EXAMINATION REPORT (IEE) FOR New 132 KV Sang Jani – Zero Point Double Circuit Transmission Line POWER DISTRIBUTION ENHANCEMENT PROJECT (TRANCHE – III) UNDER ASIAN DEVELOPMENT BANK MULTI TRANCHE FINANCING FACILITY (MFF) AUGUST 2012 (DRAFT) Prepared & Submitted By ENVIRONMENTAL & SOCIAL SAFEGUARD UNIT OFFICE OF G.M (DEVELOPMENT) MANAGEMENT UNIT ISLAMABAD ELECTRIC SUPPLY COMPANY (IESCO) ISLAMABAD – PAKISTAN. 132 KV Sang Jani – Zero Point D/C Transmission Line Subproject (IESCO) Initial Environmental Examination (IEE) Report Table of Contents 1. INTRODUCTION 1 1.1 Overview 1 1.2 Scope of the IEE Study and Personnel 4 1.3 Structure of Report 5 2. POLICY AND STATUARY REQUIREMENTS IN PAKISTAN 6 2.1 Statutory Framework 6 2.1.1 Pakistan Environmental Protection Act, 1997 6 2.1.2 Pakistan Environmental Protection Agency Review of IEE and EIA Regulations, 2000 7 2.1.3 National Environmental Quality Standards 8 2.1.4 Other Relevant Laws 8 3. DESCRIPTION OF THE PROJECT 10 3.1 Type of the Project 10 3.2 Categorization of the Project 10 3.3 Need for the Project 10 3.4 Location and Scale of Project 11 3.5 Decommissioning and Disposal of Materials 13 3.6 Proposed Schedule for Implementation 14 4. DESCRIPTION OF THE ENVIRONMENT 16 4.1 Project Area 16 4.1.1 General Characteristics of Project Area 16 4.1.2 Affected Administrative Units 16 4.2 Physical Resources 16 4.2.1 Location, Topography, Geography, Geology, and Soils 16 4.2.2 Climate 17 4.2.3 Irrigation 18 4.2.4 Surface Water & Water Supply 18 4.2.5 Rivers and Tributaries 18 4.2.6 Air Quality 18 4.2.7 Noise 19 4.3 Biological Resources 20 4.3.1 Flora 20 4.3.2 Fauna 20 ii 132 KV Sang Jani – Zero Point D/C Transmission Line Subproject (IESCO) Initial Environmental Examination (IEE) Report 4.3.3 Protected Areas / National Sanctuaries 20 4.4 Economic Development 20 4.4.1 Agriculture & Livestock 20 4.4.2 Industries 21 4.4.3 Communication 21 4.4.4 Energy Sources 22 4.5 Social and Cultural Resources 22 4.5.1 Population Communities and Employment 22 4.5.2 Education and Literacy 23 4.5.3 Health Facilities 23 4.6 Cultural Heritage and Community Structure 24 5. SCREENING POTENTIAL ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES 26 5.1 Project Location 26 5.1.1 Impact Assessment and Mitigation 26 5.2 General Approach to Mitigation 27 5.2.1 Cultural Heritage, Mosques, Religious Sites, and Social Infrastructure 28 5.3 Potential Environmental Impacts in Construction Phase 28 5.3.1 Encroachment, Landscape and Physical Disfiguration 28 5.3.2 Cut and fill and waste disposal 29 5.3.3 Trees, Ecology and Protected Areas 30 5.3.4 Hydrology, Sedimentation, Soil Erosion 30 5.3.5 Air Pollution from Earthworks and Transport 30 5.3.6 Noise, Vibration and Blasting 31 5.3.7 Sanitation, Solid Waste Disposal, Communicable Diseases 33 5.4 Potential Environmental Impacts in Operational Phase 33 5.4.1 Air Pollution and Noise from the Enhanced Operations 33 5.4.2 Pollution from Oily Run-off, Fuel Spills and Dangerous Goods 34 5.4.3 Enhancement 35 6. INSTITUTIONAL REQUIREMENTS & ENVIRONMENTAL MANAGEMENT PLAN 36 7. PUBLIC CONSULTATION AND INFORMATION DISCLOSURE 52 7.1 Approach to Public Consultation 52 7.2 Public Consultation Process 52 7.3 Results of Public Consultation 53 iii 132 KV Sang Jani – Zero Point D/C Transmission Line Subproject (IESCO) Initial Environmental Examination (IEE) Report 7.4 Grievance Redress Mechanism 53 7.5 Redress Committee, Focal Points, Complaints Reporting Recording and Monitoring 54 8. CONCLUSIONS 57 8.1 Findings and Recommendations 57 8.2 Summary and Conclusions 58 FIGURES AND MAPS Figure 1.1: Pakistan EIA Process Figure 3.1: Jurisdiction Map of IESCO Figure 3.2: Location of Sang Jani – Zero Point Transmission Line Subproject Figure 3.3: Time Schedule for Tranche – III Project Figure 7.1: Grievance Redress Mechanism APPENDICES Appendix – I (A) Summary of Environmental Monitoring Plan (Matrix) Appendix – I (B) Monitoring Plan for Performance Indicators Appendix – I (C) Monitoring Plan Appendix – II Summary of Public Consultation Appendix –III Implementation Schedule for Tranche III –Distribution Enhancement Program Appendix – IV Summary of Lost Assets Appendix – V Photographs iv 132 KV Sang Jani – Zero Point D/C Transmission Line Subproject (IESCO) Initial Environmental Examination (IEE) Report ABBREVIATIONS ADB Asian Development Bank COI Corridor of Influence CSP Country Strategy Program DFO Divisional Forest Officer DIZ Direct Impact Zone DoF Department of Forests EA Environmental Assessment EARF Environment Assessment Review Framework EIA Environment Impact Assessment IEE Initial Environmental Examination EMP Environmental Management Plan E&SS Environment & Social Safeguard GDP ` Gross Domestic Product GIS Gas Insulated Switchgear GOP Government of Pakistan GS Grid Station GSS Grid Sub-Station LARP Land Acquisition and Resettlement Plan Leq Equivalent sound pressure level MPL Maximum permissible level NEQS National Environmental Quality Standards NGO Non Governmental Organization PC Public consultation PEPA Punjab Environmental Protection Agency PEPAct Pakistan Environment Protection Act 1997 (as regulated and amended) PPMS Project Performance Monitoring System REA Rapid Environmental Examination SIA Social Impact Assessment SP Subproject SR Sensitive Receiver TL Transmission line TOR Terms of Reference Rupee, PKR Unit of Pakistan currency. 1 USD = 95 PKR v 132 KV Sang Jani – Zero Point D/C Transmission Line Subproject (IESCO) Initial Environmental Examination (IEE) Report 1. INTRODUCTION 1.1 Overview 1. This document is the Initial Environmental Examination (IEE) Report for the 132 KV Double Circuit Sang Jani - Zero Point Transmission Line, Tranche III sub-project, proposed by Islamabad Electricity Supply Company; (IESCO) under Asian Development Bank (ADB) financed Power Distribution and Enhancement Multi- tranche Finance Facility (PDEMFF). 2. Government of Pakistan (GoP) has requested ADB to provide the PDEMFF to facilitate investments in power distribution and development of networks of Independent Distribution Companies (DISCOs) that distribute power to end user consumers. The funding from ADB is expected to be released in stages (Tranches). The Power Distribution Enhancement Investment Program (PDEIP) is part of the GoP long term energy security strategy. The proposed ADB intervention will finance new investments in PDEIP and assist capacity building of sector related agencies. The investment program will cover necessary development activities in secondary transmission / distribution networks of DISCOs and Tranche-III loan is expected to be approved by ADB in 2012. The PDEMFF activities include extension (additional transformers) and augmentation (replacement of transformers with higher capacity) distribution line extensions, new and replacement distribution lines, additional substations, transformer protection and other non network activities. New distribution lines to and from various network facilities and some of the above activities will also be included in the later trenches. The proposed PDEMFF facility has been designed to address both investment and institutional aspects in the electrical power sector. 3. This Initial Environmental Examination Report presents the results and conclusions of Environmental Assessment Examination for the construction of 132 KV Double Circuit Sang Jani - Zero Point Transmission Line, Tranche III sub-project, proposed by IESCO. PEPCO has been nominated by Ministry of Water and Power (MOWP) to act as the Executing Agency (EA) with each DISCO (IESCO) being the Implementing Agency (IA) for work in its own area. PEPCO‘s role in the processing and implementation of the investment program is that of a coordinator of such activities as preparation of PC-1s and PFRs (Periodic Financing Request), monitoring implementation activities; that includes submission of Environmental Assessments for all subprojects in all trenches of the PDEMFF under ADB operating procedures. An IEE has been carried out to fulfill the requirements of ADB Safeguards Policy Statement, 2009. Environmental & Social Safeguard Unit – IESCO Page 1 of 90 132 KV Sang Jani – Zero Point D/C Transmission Line Subproject (IESCO) Initial Environmental Examination (IEE) Report 4. The Initial Environmental Examination requirements of the GoP for grid stations and power distribution subprojects are different to those of ADB. Under GoP regulations, the Pakistan Environmental Protection Agency Review of Initial Environmental Examination and Environmental Impact Assessment Regulations (2000) categorizes development subprojects into two schedules according to their potential environmental impact. The proponents of subprojects that have reasonably foreseeable impacts are required to submit an Initial Environmental Examination Report for their respective subprojects (Schedule I). The proponents of subprojects that have more adverse environmental impacts (Schedule II) are required to submit an environmental impact assessment (EIA). Distribution lines and substations are included under energy subprojects and Initial Environmental Examination Report is required for sub transmission / distribution lines of 11kV and less and large distribution subprojects (Schedule-I). EIA is required by GoP for all subprojects involving sub transmission / distribution