Social Monitoring Report

Social Monitoring Report (January to June 2020)

Project Number: 50059-002

Loan Number: 3542-NEP June 2020

Nepal: Power Transmission and Distribution Efficiency Enhancement Project

This Social Monitoring Report is a document of 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. Your attention is directed to the “terms of use” section of this website. In preparing country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic areas in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Social Monitoring Report (January 2020 to June 2020)

Loan 3542 (NEP) Power Transmission and Distribution Efficiency Enhancement Project (Project Number: 50059-002)

Submitted to: Asian Development Bank Resident Mission Metro Park,

Submitted by: Nepal Electricity Authority Project Management Directorate Matatirtha, Kathmandu

Prepared by: Project Supervision Consultant Power Grid Corporation of India Ltd. in association with PricewaterhouseCoopers Private Limited and M/s Jade Consult Pvt. Ltd.

CURRENCY EQUIVALENTS (As of 30 June 2020)

Currency unit – Nepalese Rupee (NRS) NRS1.00 = $0.008262 US$1.00 = NPR121.040000

NOTES: The fiscal year (FY) of the Government of Nepal and its agencies ends on 16 July. FY before a calendar year denotes the year in which the fiscal year ends, e.g., FY 2018 ends on 16 July 2018. In this report, "$" refers to US dollars.

ACRONYMS

ADB - Asian Development Bank AP - Affected person CDC - Compensation Determination Committee CDO - Chief District Officer DPs - Di splaced person DMD - Deputy Managing Director EA - Executive Agency ESSD - Environmental and Social Studies Department EUC - Electricity Users Cooperative FGL - Finish Ground Level GoN - Government of Nepal GRC - Grievance Redress Committee GESI - Gender Equality and Social Inclusion GIS - Gas Insulated Switchgear Substation Ha - Hectare HHs - Households IR - Involuntary Resettlement JFPR - Japan Fund for Poverty Reduction kV - kilo Volt NEA - Nepal Electricity Authority MVA - Mega Volt Ampere PPTA - Project Preparatory Technical Assistant PTDEEP - Power Transmission and Distribution Efficiency Enhancement Project PMD - Project management directorate PSC - Project Supervision Consultant RoW - Right of Way RP - Resettlement Plan SPS - ADB Safeguard Policy Statement (2009) SEP - Stakeholder Engagement Plan TA - Technical Assistance

TABLE OF CONTENTS CURRENCY EQUIVALENTS ...... III ACRONYMS ...... IV TABLE OF CONTENTS ...... V LIST OF TABLES ...... VI LIST OF APPENDICES ...... VI EXECUTIVE SUMMARY ...... I 1. INTRODUCTION ...... 5

1.1 BACKGROUND ...... 5 1.2 BRIEF PROJECT DESCRIPTION ...... 5 2 PROJECT STATUS...... 7

2.1 STATUS OF PROJECT IMPLEMENTATION ...... 7 2.2 STATUS OF PROJECT MONITORING ACTIVITIES ...... 9 2.2.1. Monitoring Parameters/Indicators and Methods ...... 10 2.2.2. Semi-annual Monitoring Results ...... 10 2.2.4. Land Acquisition and Compensation Distribution ...... 12 2.2.5. Compensation Distribution for Structures ...... 13 2.2.6. Additional Assistance to Project Affected Vulnerable Households ...... 14 2.2.7. Livelihood Restoration ...... 15 2.3 IMPLEMENTATION SCHEDULE ...... 17 3 INSTITUTIONAL ARRANGEMENT FOR MONITORING ...... 65 4 COMPLIANCE WITH SOCIAL SAFEGUARD LEGAL AND POLICY REQUIREMENT ...... 65 5 GRIEVANCE REDRESSAL MECHANISM AND ITS IMPLEMENTATION ...... 70

5.1 RECEIVED GRIEVANCES/SUGGESTIONS AND STATUS ...... 71 6 CONSULTATION, PARTICIPATION AND DISCLOSURE ...... 74

6.1 CONSULTATIONS ...... 75 7 KEY ISSUES AND RECOMMENDED CORRECTIVE MEASURES ...... 76

LIST OF TABLES TABLE 1-1: DETAILS OF PROJECT AND ITS COMPONENTS ...... 6 TABLE 2-1: PHYSICAL PROGRESS OF THE SUB-PROJECTS ...... 7 TABLE 2-2: SUMMARY OF PERFORMANCE ON SOCIAL SAFEGUARDS ...... 11 TABLE 2-3: STATUS ON COMPENSATION DISTRIBUTION FOR ACQUIRED LAND ...... 13 TABLE 2-4: STATUS ON COMPENSATION DISTRIBUTION FOR AFFECTED STRUCTURES ...... 14 TABLE 2-5: VULNERABLE HOUSEHOLDS ...... 14 TABLE 2-6: ADDITIONAL ASSISTANCE TO VULNERABLE GROUPS PROPOSED IN RP ...... 15 TABLE 2-7: PROGRESS ON GESI ACTIVITIES ...... ERROR! BOOKMARK NOT DEFINED. TABLE 2-8 IMPLEMENTATION SCHEDULE ...... 17 TABLE 4-1 SAFEGUARDS RELATED REQUIREMENTS ...... 65 TABLE 5-1 GRIEVANCE MATRIX ...... 73 TABLE 6-1 DISCLOSURE PLAN ...... 74 TABLE 7-1 CORRECTIVE MEASURES AND ISSUES ...... 76

LIST OF APPENDICES ANNEX 1 COMPONENT WISE LOCATION ANNEX 2 STATUS OF COMPLIANCE WITH LOAN COVENANTS ANNEX 3 THE GRC FOMATION LETTER OF SUBSTATIONS ANNEX 4 GRIEVANCE REDRESSAL COMMITTEE (GRC) MATRIX AND SAMPLE LOCAL CONCERNS TO ANNEX 5 PHOTOGRAPHS

EXECUTIVE SUMMARY

1. 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 Kathmandu valley. This project is loan funded project of ADB and the project commissioning date is June 2022. 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.

2. The main objectives of the PTDEEP is to enhance the distribution capacity and improve reliability and quality of electricity supply in the Kathmandu Valley by reducing distribution system overloads & technical and commercial losses. This will be done through the strengthening of the transmission grid capacity, enhanced capacity and rehabilitating the distribution network in the project areas and enhancing operational and financial performance of NEA distribution centers. The project shall be utilizing the US$150 million loan approved by the ADB to help improve Nepal’s electricity supply and distribution network. The project also aims to develop NEA’s capacity to operate & manage an advanced distribution system and intelligent network (smart grid) technology with Gender and social inclusion (GESI) aspects in electricity access and end-user awareness programs. For this, an assistance grant equivalent to US$ 2 million is received from the Japan Fund for Poverty Reduction (JFPR) financed by the Government of Japan to strengthen the capacity of Nepal’s energy sector to deliver gender and Socially equitable and inclusive power supply..

3. The project shall lead to enhanced reliability of availability of electricity in the target area by bringing in substantial infrastructure enhancement transmission & distribution network. The major project components may also be classified as: (i) substations, (ii) distribution network rehabilitation, (iii) system efficiency upgrades for enhancement of operational and financial performance of NEA distribution centers, and (iv) capacity building of NEA staff.

4. The major outcome from the execution of above listed components of the project is expected as follows: • Increased transmission grid capacity to feed the primary distribution networks for Kathmandu Valley. • Rehabilitation and Reinforcement of Kathmandu Valley distribution network which covers distribution system automation and the rehabilitation of low-voltage and medium-voltage networks, in the central and northern and Eastern and Southern region of Kathmandu Valley.

i • Operational and financial performance of NEA distribution centers improvement with single-phase and three-phase smart meters to automate customer metering and reduce non-technical losses.

5. NEA’s Capacity Building to operate and manage advanced distribution system, intelligent network (smart grid) technology with GESI aspects in electricity access and end-user awareness.

6. The PTDEEP project as a whole are described by following components:

• Sub-project 1: Kathmandu Valley Transmission Capacity Reinforcement project Construction of 132/11 kV gas insulated substations at: • Chapagaun • Mulpani • Phutung Site levelling at Mulpani and Phutung is carried out. Land acquisition at Chapagaon could not be done due to problems faced during negotiation with landowners and alternative site (existing 11kV switching station at Thimi to be upgraded) is now proposed.

• Sub-project 2: Lapsiphedi and Changunarayan Substation Construction Project ̵ Construction of new (220/132/11kV) gas insulated substation (GIS) at Lapsiphedi. ̵ Construction of new gas insulated substations (132/11kV) at Changunarayan

Survey works and geotechnical investigation completed. Site levelling at Changunarayan is completed. Site levelling at Lapsiphedi (cutting part) is carried out.

• Sub-project 3: 220/132kV Barhabise (New) GIS Substation ̵ Construction of 220/132/11kV gas insulated substation at Barhabise

Survey works and geotechnical investigation completed. Site levelling and retaining wall works are under progress.

• Sub-project 4: Enhancement of Distribution networks in Kathmandu Valley ̵ Enhancement of Distribution networks in Central and Northern Region of Kathmandu Valley ̵ Enhancement of Distribution networks in Eastern and Southern Region of Kathmandu Valley

Survey work completed and physical work commenced in February 2020. Trenching, foundation, pipe/cable laying is in progress.

• Sub-project 5: Delivery of Distribution Transformers Under tendering (technical evaluation) stage.

ii • Sub-project 6: Enhancement of Distribution Networks in Major Urban Centers of Nepal ̵ Enhancement of Distribution Networks in Major Urban Centers in Eastern Region of Nepal ̵ Enhancement of Distribution Networks in Major Urban Centers in Western Region of Nepal ̵ Enhancement of Distribution Networks in Major Urban Centers in Central Region of Nepal

Demand forecasting for Bhaktapur, Lalitpur, Poikhara and Bharatpur is completed. Load flow studies and proposed network for Bhaktapur is completed. Final DPR of Bhaktapur was submitted and presentation was made to NEA.

7. The PTDEEP is categorized as A in terms of Involuntary Resettlement, B in terms of Environment and C in terms of Indigenous People. The meaningful consultation ensures the presence of different categories of representatives in the consultation process so as to obtain a balanced public opinion, equitable and non-discriminatory participation, provide transparent and factual information with prior information about the project, systematic documentation of the process, public disclosure of relevant parts etc.

8. The land acquisition notification for four substations had been published in the National Daily Newspaper on 2074/02/04 (18 May, 2017) for Lasiphedi, 2073/02/07 (20 May, 2016) for Changunarayan, 2073/09/20 (04 Jan, 2017) for Phutung, 2073/11/11 (22 Feb, 2017) for Mulpani and Barhabise 2073/03/25(09 July 2016). The compensation determination committees finalized compensation costs for Changunaryan, Lapsiphedi, Mulpani, Phutung and Barhabise substations. Distribution of compensation to the landowners is almost completed.

9. NEA has established a separate Project Management Directorate (PMD) to expedite decision making for the timely implementation of all ADB projects including PTDEEP. PMD {headed by Deputy Managing Director (DMD)} is responsible for preparation, procurement, construction and supervision works under ADB projects.

10. This monitoring report is prepared based on important parameters/indicators including: (i) type of impact due to land acquisition, (ii) extent of impacts, (iii) measures adopted to minimize impacts, (iv) implementation status of mitigation measures, (v) consultation and participation, (vi) grievance redressed, (vii) compensation payment and (viii) implementation of resettlement and rehabilitation activities. Various tools were used to collect data and information and to identify issues related to compensation process which include: (i) Observation to collect data and information of the Affected Persons (APs) in particular and community as a whole, (ii) Interview, focused group discussions, village mapping and data collection utilizing other participatory rule appraisal (PRA) techniques with APs, community members, workers and officials/other stakeholders to collect data and information, (iii) Public consultation /meetings with affected community and officials, and (iv) Formal survey method with CDO, representatives of local elected bodies & concerned stakeholders.

iii

11. As practiced in NEA projects, if there are grievances or suggestions, project affected families or local people submit/express their plea verbally or in written form to project officials. The submitted petition or suggestions will be initially reviewed by the project manager. On the matters related to general and technical issues or suggestions, the project team itself tries to resolve the issues. However, if the issues or suggestions are major and they need to be notified to CDO and NEA before any decisions are taken, the CDO and NEA are notified. Then the CDO, on a fixed date, in the presence of all relevant stakeholders, including the submitted grievances, discusses about the issues or suggestions and resolve the problems with the active involvement and consensus of the stakeholders. If unsatisfied with the CDO determination, APswill have their right to take the grievance up-to the Ministry of Home Affairs (MoHA). The MoHA normally makes decisions on a complaint within 15 days, unless further information is required, or unless the complaint have to be solved in a court of law. The GRCs have been formed in four substations (Lapsiphedi, Changunarayan, Mulpani and Phutung) whereas GRC formation in Barhabise substation is under process.

12. The disclosure of project information have to be done well in advance of commencement of project construction works. At each stage, certain engagement activities are being conducted/will be conducted to keep the stakeholders informed and they will be continuously reached for their feedback.

13. Land Acquisition has been completed in Changunarayan, Lapshiphedi, Phutung, Mulpani and Barhabise substations. Compensation of land acquisition in Phutung is 100% completed. For the rest four substations some of the landowners are yet to receive the compensation due to legal issues on land ownership document. Socio economic survey has been completed in all four substations. Grievance redress committee has been formed in all four substations.

iv 1. INTRODUCTION

1.1 BACKGROUND The Government of Nepal (GoN) and ADB negotiated the loan on 19th May 2017 for PTDEEP and loan agreement was signed on 29th June 2017. The project is expected to be completed by June 2022. 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 Kathmandu valley, increasing service reliability of the utility and building capacity for overall distribution system development. The main aim of the PTDEEP is to enhance distribution capacity and improve reliability and quality of electricity supply in Kathmandu Valley by reducing distribution system overloads and technical & commercial losses. This will be done through strengthening of the transmission grid capacity, increasing capacity and rehabilitating distribution network in the project area, and enhancing operational and financial performance of NEA distribution centers. The project shall be executed from ADB loan of US$150 million to help improve Nepal’s electricity supply and distribution network. The project also aims to develop NEA’s capacity to operate & manage an advanced distribution system and intelligent network (smart grid) technology with GESI aspects in electricity access and end-user awareness programs. For this, an assistance grant equivalent to US$2 million has been received from the Japan Fund for Poverty Reduction (JFPR) financed by the Government of Japan to strengthen capacity of the Nepal’s energy sector to deliver gender and socially equitable and inclusive power supply. 1.2 BRIEF PROJECT DESCRIPTION

The project shall lead to enhanced reliability of availability of electricity in the target area by bringing in substantial infrastructure enhancement in transmission & distribution network. The major project components can be classified under following headings (i) substations, (ii) distribution network rehabilitation, (iii) system efficiency upgrades for enhancement of operational and financial performance of NEA distribution centers, and (iv) capacity building of NEA staff. Major expected outcomes of the project are: (i) Increased transmission grid capacity to feed the primary distribution networks for Kathmandu Valley. (ii) Rehabilitation and Reinforcement of Kathmandu Valley distribution network which covers distribution system automation and the rehabilitation of low-voltage and medium-voltage networks, in the central and northern distribution centers of Kathmandu Valley. (iii) Operational and financial performance of NEA distribution centers improved with single- phase and three-phase smart meters to automate customer metering and reduce non- technical losses. (iv) Built NEA’s Capacity to operate and manage advanced distribution system, intelligent network (smart grid) technology with GESI aspects in electricity access and end-user awareness

The project has four components among which involuntary resettlement will be witnessed only in component-1 whereas there will be temporary impact while executing component -2 of the project.

5 There is no impact (permanent or temporary) envisaged in execution of component 3 and 4 of the project. The project is expected to be completed by June 2022. Details of subprojects under this loan are provided in Table 1-1. Component wise location detail is in Annex 1.

Table 1-1: Details of Project and its Components SN Sub-projects Components Substations/ Distribution center S1* Kathmandu Valley SS1: Mulpani SS Transmission Capacity • Construction of three 132/11kV Gas SS2: Phutung SS Reinforcement project Insulated Substation (GIS) at: SS3: Chapagaun SS (Component 1) ̵ Mulpani ̵ Phutung ̵ Chapagaun

S2* Lapsiphedi and SS1: Lapsiphedi SS Changunarayan substation • Construction of new 220/132/11kV SS2: Changunarayan SS construction project GIS at Lapsiphedi. (Component 1) • Construction of 132/11kV GIS at Changunarayan

S3* Barhabise (New) GIS SS1: Barhabise SS Substation • Construction of 220/132/11 kV Substation at Barhabise (Component 1) S4 Enhancement of • Central and Northern Region of DC1: Ratanpark Distribution Networks of Kathmandu Valley DC2: Maharajganj Kathmandu Valley • Eastern and Southern Region of (Component 2) Kathmandu Valley S5 Delivery of Distribution • Delivery of Distribution transformers • Maharajung and transformers Ratanpark in Kathmandu (Component 3) S6 Enhancement of • Eastern Region of Nepal Distribution Networks in • Central Region of Nepal Major Centers of Nepal (Component 4) • Western Region of Nepal * S1, S2 and S3 are sub-sections of Component 1 & have been separated to better represent their geography, timelines and current status

6 2 PROJECT STATUS 2.1 STATUS OF PROJECT IMPLEMENTATION

NEA has established a separate Project Management Directorate (PMD) to expedite decision making for the timely implementation of all ADB projects including PTDEEP. PMD is headed by Deputy Managing Director (DMD) and responsible for preparation, procurement, construction and supervision of ADB projects.

Under the PPTA support, consulting firm was engaged to support NEA to prepare detailed design including the routes and cost estimates, prepare bidding documents and involve in bid selection process. Further, a Project Supervision Consultant (PSC) is engaged to supervise the project during construction.

The summary of physical progress of packages until June 2020 are described in the below Table-2-1 Table 2-1: Physical Progress of the Sub-Projects Sub- Works for the second Subcomponents Works Completed by June, 2020 project half of 2020

S1 Kathmandu Valley Transmission Capacity Enhancement Project

Soil investigation work has been completed. The site leveling works is carried out. Superstructure drawings finalized. Boundary wall work Site leveling, boundary SS1 Mulpani Substation commenced but left in between by the wall, approach road. contractor. Power transformers inspection has been completed.

The contour survey and Soil investigation work has been completed at Phutung S/S Site. The SS2 site leveling work is carried out, however FGL is Access road, boundary Phutung Substation yet to be achieved. Major equipment drawings wall, retaining wall and like power transformer, GIS equipment has foundations. been approved. Dispatch of power transformer is under process.

Survey, preliminary works and Chapagaun Due to problem faced during negotiation with SS3 commencement of Substation/Thimi landowners, work could not commence at foundations (Site is Substation Chapagaon. shifted at Thimi existing switching station)

Completion of site Survey works and geotechnical Investigation leveling, retaining wall, SS4 Barhabise SS completed. Site leveling, boundary wall, boundary wall and retaining wall is nearing completion. foundation.

7 Sub- Works for the second Subcomponents Works Completed by June, 2020 project half of 2020

S2

Contour survey and Soil Investigation works (except plate load test) have been completed. Lapsiphedi Contract award to be SS1 Site levelling work is partially completed (cutting Substation expedited. part). Survey of road approach has been completed.

Site Leveling and contour survey works have been completed. Soil Investigation works at Changunarayan Contract award to be S2 Changunarayan S/S has also been completed. Substation expedited. Construction of retaining wall is almost completed.

S3

Completion of Site levelling, retaining Wall, The Contour Survey & Soil Investigation works Construction of & boundary wall works. have been completed at Barhabise S/S Site. 220/132/11kV gas The site leveling work is carried out, however Commencement of insulated substation FGL is yet to be achieved. Dispatch of Power & equipment foundation. at Barhabise LT Transformer & EOT Crane is under process. Commencement of earthing installation.

S4

HDD/MHDD/Open Detailed survey work completed. trench, HDPE pipe Cable laying and construction of panel Central and Northern laying, foundation for foundation work is under progress at Region feeder panels, RMU, Tareveer, Shivapuri, Ganeshthan, Transformers work at Panipokhari, Golfutar feeder. further feeders.

HDD/MHDD/Open Detailed survey work completed. trench, HDPE pipe Eastern and Cable laying and construction of panel laying, foundation for

Southern Region foundation work is under progress at Danchi, feeder panels, RMU, Jorpati and Pasupati feeder. Transformers work at further feeders.

S5

Supply of Maharajgung and Distribution Technical evaluation is under process. Ratnapark in Kathmandu Transformers

8 Sub- Works for the second Subcomponents Works Completed by June, 2020 project half of 2020

S6

Eastern Region • GIS mapping completed. Demand Forecast, (, , • Load Growth forecasting for Biratnagar is system studies and DPR ) completed. preparation.

Central Region • GIS mapping completed. (, , • Load growth forecasting for Janakpur, , , Demand Forecast and Hetauda, Birgunj, Kalaiya, Jitpur-Simara, Jitpur-Simara, DPR preparation. Bharatpur, Lalitpur, Bhaktapur is completed. Bharatpur, Lalitpur, • Final DPR for Bhaktapur is submitted. Bhaktapur)

Western Region • GIS Mapping Completed. (, , • Load Growth forecasting for Pokhara, Demand Forecast and Lekhnath, Tulsipur, Lekhnath, Butwal, and Dhangadi DPR preparation. Gorahi, Nepalgunj is completed. and Dhangadi)

2.2 STATUS OF PROJECT MONITORING ACTIVITIES

As per the Safeguard Policy Statement (2009) of ADB, the borrower/client will monitor and measure the progress of implementation of the resettlement plan. The extent of monitoring activities will be commensurate with the project’s risks and impacts. As per the loan agreement and Resettlement Plan (RP) of the project, EA has to prepare semiannual safeguard monitoring report and submit to ADB. The semiannual report is based on the periodical report submitted by the subprojects to PMO, secondary document review, field information, discussion, meetings and extensive consultations with stakeholders including project officials, affected persons, and the relevant project staff.

All the subcomponents under above mentioned table comes under the scope of subject semiannual social monitoring report.

NEA and its PMD is directly responsible for internal monitoring of RP implementation. In particular, ESSD and supervision consultants will supervise and manage monitoring of resettlement activities and implementation arrangements. The objectives of the monitoring program are (i) to ensure that the standard of living of affected households are restored or improved; (ii) to monitor whether the overall project and resettlement objectives are being met; (iii) to assess, if rehabilitation measures and compensation are sufficient; (iv) to identify problems and risks; and (v) to identify measures to mitigate problems.

NEA/PMD’s social development specialist (SDS) with guidance from ESSD and supervision consultants will conduct field level monitoring and regularly monitor the status of land acquisition, compensation payments, identification of entitled persons physically and processing their entitlements, relocation and resettlement. Implementing consultants, as needed will assist the monitoring.

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The External Monitor (EM) is provisioned for the monitoring of implementation of the RP. The EM should be mobilized soon after the completion of final design and confirmation of all census. The main objectives of external resettlement monitoring are: (i) compensation and entitlement policy compliance, (ii) adequacy of organizational mechanism for implementing the RP, (iii) restoration of displaced person (DPs) incomes, (iv) settling complaints and grievances, and (v) provisions for adequate budgetary support for implementing the RP.

Qualitative and Quantitative Data:

This social monitoring report collected data utilizing both quantitative and qualitative tools and techniques to draw inference related to safeguard issues and implementation. The quantitative data are collected to measure the status and change of a specific variable which are quantifiable such as affected households, acquired land, compensation distribution status, total structure loss, total crop loss etc.

The qualitative data are also collected in order to identify the issues as well as get detailed information during the implementation process through observation, open-ended interviews, meaningful consultation meetings, GRC meetings, discussions, formal meetings with project staffs, project affected families, local communities, and other stakeholders etc.

2.2.1. MONITORING PARAMETERS/INDICATORS AND METHODS Monitoring method of this semi-annual monitoring report is based on some important parameters/indicators including: (i) type of impacts due to acquisition, (ii) extent of impacts, (iii) measures adopted to minimize the impacts, (iv) implementation status of mitigating measures, (v) consultation and participation, (vi) grievance redressed, (vii) compensation payment, and (viii) implementation of resettlement and rehabilitation activities.

Various tools were used to collect data and information and to identify issues related to compensation process which includes: (i) Observation for collection of data and information of the APs in particular and community as a whole, (ii) Interviews /focused group discussions, village mapping and data collection utilizing other participatory rural appraisal (PRA )techniques with affected persons, community members, workers and officials/other stakeholders to collect data and information, (iii) public consultation meetings with affected community and officials (iv) formal survey method with CDO, representatives of local elected bodies & concerned stakeholders.

2.2.2. SEMI-ANNUAL MONITORING RESULTS Some of the PTDEEP components do not require land acquisition, as mentioned above. However, ADB safeguard policy may be triggered even in such cases (rehabilitating / undergrounding distribution lines), if it involves issues like impact on public and private properties, incomes, restriction to social mobility etc. Therefore, adequate consultation and disclosure is required to address or where possible mitigate such issues before and during the project implementation in line with ADB SPS (2009).

10 There are some tenants/other right holders claiming legal ownership over the land at substations Lapsiphedi and Mulpani. Their documents are being verified by District Administration Office. As the compensation has already deposited in DAO, same shall be released after ownership verification. All the documents related to project affected households, details of affected land, compensation disbursement related documents to the affected families, their details and information about compensation payment to remaining households, information regarding formation of committee representing project affected family and cadastral maps of the acquired land etc. have been maintained in the project office. The substations and distribution components will have both permanent and temporary impacts respectively. Permanent impacts are anticipated due to land acquisition for construction of substations which require around 21.64 hectares of private land (for 5 substations as detailed above). The temporary impact will be in the form of few-day business interruption due to disturbance during construction of underground distribution lines and re-stringing of the overhead lines. Consultations and surveys were done during the due diligence and a resettlement plan has been prepared to address both permanent and temporary impacts in compliance with ADB’s SPS and the government’s legal requirements. The draft resettlement plan has already been disclosed on ADB’s website. The resettlement plan has been updated to incorporate final technical designs and major changes, if any. Corrective action plan will be prepared, if necessary. Updated resettlement plans and corrective action plans will be disclosed in line with disclosure obligations after ADB’s approval. Summary of Performance on social safeguards

Currently, the project has just entered the implementation stage of substations construction. The progress made in the safeguard implementation under different PTDEEP subproject components are summarized on Table 2-2:

Table 2-2: Summary of Performance on social safeguards

Component Subprojects Performance on Safeguards 1. Construction of new 220 kV substation About eighty five percent affected landowner (GIS) at Lapsiphedi and 132kV households have already been compensated substation (GIS) at Changunarayan; for their acquired land. Compensation for those lacking ownership documents, court cases, and absentees is remaining. The project with the support of local level committee is working to ensure ownership documents and distributing compensation including to other remaining households. Construction of 3 gas insulated Land acquisition and compensation already substations (132/11kV) at: Chapagaun; completed in Phutung and Mulpani (3 APs Mulpani; and Phutung. are remaining) subprojects. . Construction of 220/132/11kV gas In Barhabise SS, compensation amount has insulated substation at Barhabise. been disbursed to 49 APs except 1 AP.

2. Distribution network rehabilitation at Site visits are being carried out to ensure Maharajgunj and Ratnapark compliance.

3. Improvement of operational and Not applicable. financial performance of NEA

11 Component Subprojects Performance on Safeguards distribution centers with 90,000 smart meters. 4. Capacity building of NEA staff to Not applicable. operate and managed advanced distribution system, intelligent energy network (Smart Grid) technology and GESI aspects in electricity access and end user’s awareness program

2.2.3. Documentation and Approval The project had prepared RP which was approved by ADB during the PTDEEP feasibility phase (2017). It was prepared to mitigate the acquisition and resettlement impacts associated with the project as well as to mitigate the temporary impacts likely to occur during underground/overhead cabling works. Updated resettlement plan has been prepared for all the sub projects (except Barhabise substation which is part of Tamakoshi-Kathmandu 220kV Transmission line project) after the finalization of the detail design which is being reviewed by PMD, before submission to ADB. The project is categorized as A for involuntary resettlement and categorized as C for indigenous people. The substations and distribution components will have both permanent and temporary impacts. Permanent impacts recorded are due to land acquisition for construction of five substations which required 21.64 hectares of private land. 2.2.4. LAND ACQUISITION AND COMPENSATION DISTRIBUTION As per the project’s resettlement plan, land acquisition and resettlement impact are mainly concentrated in component-1 of the project. However, temporary impacts on account of movement of people, business, operation of vehicle etc. are likely to occur during the construction phase under component-2 and negligible impacts in the remaining components. The land acquisition notice for Changunarayan substation (Bhaktapur district) was published on 2073/02/07 (20th May 2016). The land acquisition notice for Phutung and Mulpani substations of Kathmandu district was published on 2073/09/20 (4January 2016) and 2073/11/11 (22February 2017) respectively. For the Lapsiphedi substation, notice was published on 2074/02/04 (18 May 2020). For Barhabise land notice was published on 2073/03/25(09 July 2016). The land acquisition has not been finalized at Chapagaun SS due to disagreement on compensation rate of the land fixed by Compensation Determination Committee (CDC). The CDC has been formed for rate fixation with representation of Chief District Officer (head of CDC), Project Manager (secretary of CDC), representative of land revenue office (member of CDC), representative of survey department (member of CDC) and representative from local government (member of CDC). The CDC has fixed the rate of the required land with the replacement cost. At Changunarayan substation, 3.935 ha of land has been acquired by the project. Among the 49 HHs, 45 HHs have been compensated. 4 HHs are remaining to be compensated on account of legal issues related to landownership. 4 plots (measuring 0.072 ha) belonging to the Government of Nepal have also been acquired by the project. At Lapsiphedi substation, 9.199 ha of land has been acquired by the project. Among the 44 HHs, 39 HHs have been compensated. 5HHs are remaining to be compensated due to issue in legal land ownership document.

12 At Mulpani substation, 0.6025 ha of land has been acquired by the project and all 21 HHs have been compensated. Noteworthy to mention that among 21HHs compensated, 3 APs have only been compensated 50% of their total compensation. Remaining 50% of the compensation amount expected to be disbursed after verification of the legal ownership document. At Phutung substation, 0.812 ha of land has been acquired by the project. All 10 HHs have been compensated fully. At Barhabise substation 7.1 ha of land has been acquired by the project. Among 50 affected person, 49 APs have collected the compensation amount. Disbursement for one plot could not be made (deposited with DAO) due to non-availability of the legal land documents. Summary of the compensation status is presented below in table 2-3.

Table 2-3: Status on compensation distribution for acquired land

Land Compensated SN Substation Remarks

Amount

Affected

Remaining

Households Households Households

Private

Required(ha) Compensated

1 Changunarayan 3.935 49 45 333,989,062.52 4

Plots not having the legal documents are 2 Lapsiphedi 9.199 44 39 378,664,375.00 5 remaining for the compensation. Among the 21 HHs,3 hhs has been 3 Mulpani 0.6025 21 21 202,982,207.50 3 compensated only 50% of the amount 4 Phutung 0.812 10 10 218,618,750.00 0

5 Barhabise 7.1 50 49 131,563,359.38 1

Total 21.64 174 151 1,265,817,754.40 13

The land acquisition in the Chapagaun substation could not progress due to local issue. Alternative location at existing switching station at Thimi finalized. Contractor has been asked to prepare the layout of 132/11kV GIS station considering the available infrastructure and minimum disturbance to existing network, 2.2.5. COMPENSATION DISTRIBUTION FOR STRUCTURES Acquisition of land for the project has affected one temporary structure (constructed on the Guthi land) in Changunarayan substation. Likewise, 12 structures [5 kachhi ghar (temporary house), 2 semi – pakki ghar (permananent house), 1 pakki ghar and 4 cowsheds) are affected in Barhabise SS. Compensation has been dispersed for affected structures as mentioned below in Table 2-4.

13 Table 2-4: Status on Compensation Distribution for Affected Structures

SN Type of structures No. Estimated compensation Compensation paid (NRs) (NRs) Barhabise Sub-station 1. Kachhi ghar 5 Paid. [The compensation 2. Semi pakki ghar 2 31,401,875.01 was included in the same 3. Pakki ghar 1 package (i.e. compensation 4. Cowshed 4 for acquired land)] Total 12 31,401,875.01 Changunarayan Sub-station 1. Temporary ghar/shed 1 95,590.24 Paid amount includes shifting and transitional allowances Grand Total 13 31,497,465.25

2.2.6. ADDITIONAL ASSISTANCE TO PROJECT AFFECTED VULNERABLE HOUSEHOLDS The households of ethnic minority, single women headed households, household having person with disability, households headed by senior citizens, HHs below poverty level etc., comes under the category of vulnerable households. Vulnerability has been assessed for permanent impacts at the substations. 92 households, out of total 124 HHs, were identified as vulnerable as per the entitlement matrix of the approved resettlement plan. Among the identified vulnerable households, there are 12 single women-headed households, 7 households with members with disability, 34 households headed by senior citizens, and 67 households belong to ethnic/minority caste group. Details are mentioned in Table 2-5.

Table 2-5: Vulnerable Households

Vulnerability Type Vulnerable

-

HHs

Lapsiphedi Changuna rayan Mulpani Phutung Household headed by senior citizen 7 12 11 4 34 Single Women Headed Households 7 3 2 0 12 Households having Family Member with Disability 0 3 4 0 7 Households having BPL Income 0 0 0 0 0 Ethnic Households 34 32 0 1 67 Total as per 2019 survey 36 39 13 4 92

Additional assistance to the 92 project affected vulnerable households (which is about 74.19 percent of the total project affected households) as provisioned in the RP in accordance with entitlement matrix shall be taken up by the Project after approval of the updated RP. The payment of allowances will be done after the approval of updated RP. A tentative cost for vulnerable assistance has also been estimated in the updated resettlement plan (Table 2-6) and the additional assistance for vulnerable households will be provided as provisioned in the RP.

14

Table 2-6: Additional Assistance to vulnerable groups proposed in RP SN Vulnerable No. of No. of HHs Cash Special Total Total Categories HHs falling in Assistance Assistance Assistance Assistanc single at the Local (NRs.) [b] (NRs.) e in vulnerable Agricultural million category Wage Rate (NPR) in NRs [a] 1 Single Women 12 1 90,000 20,000 110,000 0.11 Headed HHs 2 Households having 7 2 180,000 40,000 220,000 0.22 Members with Disability 3 Senior Citizen 34 13 1,170,000 130,000 1,300,000 1.3 Headed HHs 4 Below Poverty Level 0 0 0 0 0 0 (BPL) HHs 5 Ethnic Minority 67 53 4,770,000 530,000 5,300,000 5.3 Households 6 Multiple Vulnerable 23 2,070,000 230,000 2,300,000 2.3 Category Tentative Total No of 120 92 Vulnerable Households [c] 8,280,000 920,000 9,200,000 9.2 and Assistance [a] No. of HHs x 90 days x NRs. 1000 [b] No. of HHs x NRs. 10, 000 [c] Family members of vulnerable households also will be provided capacity building and skill training under the separate GESI Training to be implemented under JFPR as described in F-3.

2.2.7. LIVELIHOOD RESTORATION The resettlement plan describes on entitlements, the income and livelihood restoration strategy, institutional arrangements, monitoring and reporting framework, budget, and time-bound implementation schedule. All affected households and persons will be entitled to a combination of compensation packages and resettlement assistance depending on the nature of ownership rights on lost assets, scope of the impacts including socio-economic vulnerability of the affected persons and measures to support livelihood restoration if livelihood impacts are envisaged. In addition, skill enhancement trainings is one of the income restoration activities which are guaranteed by the entitlement matrix. NEA will ensure that advance notice be issued to the APs prior to the start of the work and all the compensation will be paid prior to the start of the construction. NEA will attempt to restore livelihood through various livelihood restoration program such as training, employment opportunities during construction. The proposed training will be of level 1 by Council for Technical Education and Vocational Training (CTEVT). The proposed training will be organized by NEA and facilitated by PSC consultant. During the household survey, 126 persons shown an interest to take various trainings i.e. agriculture, electrician, plumbing, driving, animal husbandry etc. Compensation for loss of land and property will be directly paid to them. Loss of income generating activities due to undergrounding and cabling works will be compensated by the project based on the actual loss on case to case basis.

15 Livelihood restoration trainings are not provided to the affected people. These training are included in the updated RP. This shall be taken up after approval of updated RP.

16

2.3 IMPLEMENTATION SCHEDULE

A tentative implementation schedule of compensation for land acquisition and resettlement activities in the project including various subtasks and timeline matching with civil work schedule is provided in Table 2-8. The implementation schedule is linked to the project implementation schedule.

Table 2-7 Implementation Schedule (Year/quarterly) 2016 2017 2018 2019 2020 2021 2022 SN Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Activity Progress 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 A Project Preparation Phase Screen sub project impact A1.1 (completed)

On site public consultation for A1.2 substations and distribution line alignment

A1.3 Carry out census survey Prepare the draft resettlement A1.4 plan (RP) Carry out census survey for RP A1.5 update Updating of RP and review by A1.6 ADB Submitted updated RP review at A1.7 PMD B RP Implementation Phase Engage with social specialist and B2.1 implementing NGO Public disclosure and B2.2 information dissemination B2.3 Grievance redressal

17 (Year/quarterly) 2016 2017 2018 2019 2020 2021 2022 SN Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Activity Progress 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 Co-ordinate with district authority B2.4 for LA

B2.5 Payment of compensation for land

B2.6 Payment for all the other assets

Payment for the other allowances B2.7 and livelihood restoration

C Monitoring and Reporting Phase C3.1 Internal monitoring (ongoing) External monitoring & reporting C3.2 (Semi-annual)

18 3 INSTITUTIONAL ARRANGEMENT FOR MONITORING

NEA serves as the executing agency and will implement all activities under the ADB loan through its Project Management Directorate (PMD). The PMD is responsible for planning and implementation of the project in its entirety and include both an environmental specialist and Social Development Specialist (SDS) for the implementation of RP. The project office of NEA is working as a core unit to undertake land acquisition and resettlement and rehabilitation activities. Project Supervision Consultants including one international social specialist and one national social expert has been engaged for the implementation of the resettlement plan, and terms of references are specified in the Project Administration Manual (PAM).

Further, the capacity of NEA and PMD will be enhanced through the safeguard programs envisaged under the technical assistance (TA). The implementation will be monitored by internal and external monitors (to be appointed) and the monitoring reports will be submitted to ADB on semi-annual basis. The implementation status will be followed up during ADB review missions as well.

4 COMPLIANCE WITH SOCIAL SAFEGUARD LEGAL AND POLICY REQUIREMENT As per loan covenants, semiannual safeguard monitoring report is required to be disclosed on ADB’s website. The loan covenants compliance status is enclosed as Annex 2. The detail of compliance of social safeguard related requirements is presented in the table 4.2. Table 4-1 Safeguards Related Requirements Item Safeguards Related Responsible Compliance status Completion Process to No. Requirements Agencies Deadline Date/ Remarks 1 MANAGEMENT Institutional and Financing Arrangements 1.1 Financing and budget: NEA Being complied. Safeguard Before (i) Safeguard office and office with focal person has commencem staff; (ii) RP cost been established. ent of site Compensation for 5 works. Substations has already been disbursed. However, compensation for few landowners whose legal status is not yet confirmed by district authority (Kathmandu, Bhakatpur and Sindhupalchowk), has been deposited with district administrative office. Same shall be disbursed after finalization of ownership status. Cost of RPs has already been allocated and shall be disbursed after approval of RPs.

Item Safeguards Related Responsible Compliance status Completion Process to No. Requirements Agencies Deadline Date/ Remarks 1.2 Establish Safeguard NEA Being complied. Safeguard Continuous Safeguard Unit database has been process database has (i) Safeguard’s developed whereas trainings been developed. database facilities related to safeguard will be (ii) Safeguards training implemented as the construction work progresses Updating of Draft Document/RP/IPP based on Detailed Design 1.3 (i) Update of RP: NEA/PSC Being complied. RP for the Before Revised RP is Revise based on project, along with revised commencem under review at Detail Design budget and implementation ent of site PMD. (ii) Revise schedule, has been revised works. implementation by the PSC and is under Schedule (iii) Revise budget review. 1.4 Compensation rates: NEA Being complied: Before (i) approved by the Compensation rate has been commencem Government decided to reflect the ent of site (ii) Adequate as per replacement value of assets works. RP lost. The rate has been (iii) Affected persons decided in a transparent informed. manner in the presence of APs, government representatives and executing agency. Compensation rate has been finalized through the CDC and the disbursement of compensation is under process. Disclosure and Grievance Redress Arrangements 1.5 Disclose final / updated NEA Being complied. Before Updated RP is RP (i) to the affected commencem under review at persons in local ent of site PMD. language; (ii) in ADB works. website; (iii) in EA’s website 1.6 Disclose project NEA/ Being complied. Before GRC has been activities to affected Contractor commencem formed at each communities: ent of site project location (i) Put up a project works. and their details signboard have been (ii) Distribution of project leaflets and shared with the details of GRM to community. affected communities

Item Safeguards Related Responsible Compliance status Completion Process to No. Requirements Agencies Deadline Date/ Remarks 1.7 Grievance redress NEA Being complied. GRC has Before committee: been constituted and is commencem (i) clear terms of functional along with the ent of site reference responsible personnel from works. (ii) Appointment the project in all substations decree except Barhabise. (iii) Publicly disclosed among affected persons. 1.8 Grievance redress NEA Being complied. Disputes During the Grievance will be records: are being collected through construction resolved as per (i) list and number of the GRC and the grievances work the procedural grievances are being resolved. Within 4 details received weeks after mentioned in (ii) numbers of grievance GRM. These will resolved grievance/ received. be done within issues the time frame (iii) Numbers of cases from the date of under GRC review receiving (iv) outstanding cases complain as (filed to court) stipulated in RP. Monitoring and Reporting Arrangements 1.9 Set up internal NEA/PSC Being complied. Deputation During the monitoring system: (i) of dedicated staffs have been construction assessment on done and the periodic works. capacity and staff safeguard monitoring reports requirement; (ii) criteria have been prepared by of safeguards monitoring site activities. assessment; (iii) reporting mechanism 1.10 Appoint external NEA To be complied. External After the monitoring agency Monitoring agency yet to be construction (as relevant): (i) appointed work start. recruitment schedule; (ii) TOR; (iii) baseline survey (iv) reporting mechanism (v) action taken by management on reports. 1.11 Reporting: (i) NEA/PSC Being complied: Periodic During the Regular frequency environmental safeguard construction Environmental (ii) timelines (iii) monitoring reports have been works. safeguard identified issues prepared along with site monitoring (iv) Action taken and inspection and provided the reports /recommendation recommendation for the (Semiannual) noncompliance. have been submitted.

Item Safeguards Related Responsible Compliance status Completion Process to No. Requirements Agencies Deadline Date/ Remarks 2. RP IMPLEMENTATION Consultation 2.1 Consultation: NEA/PSC Being complied Updated RP Before start (i) Responsibility included stakeholder of (ii) Stakeholders consultation & its construction identified documentation. works and on (iii) Consultation and an ongoing process basis during (iv) Documentation. implementati on. Mapping and Assets Inventory 2.2 Affected persons’ NEA/PSC Being complied. Before identity cards and The distribution of affected construction affected assets persons' ID cards is not done works start. records: (i) issuance yet. and distribution of affected persons’ ID The records of affected cards, (i) detail assets were done via measurements survey information published in of affected assets and National daily newspapers. documentation. The measurement of land/valuation of assets were done in presence of the affected person and principle of replacement value of land/ assets was strictly adhered to and maintained proper documentation. 2.3 Common property/ NEA/PSC Being complied. Before public assets: Identification of affected construction (i) final inventory; (ii) common property and assets works start. restoration plan and completed along with schedule; (iii) funding restoration plan included in sources. the updated RP. Compensation, Relocation and Rehabilitation 2.4 Payment of NEA Being complied. Before Phutung-100%. compensation and Compensation distribution is construction Mulpani- entitlements (as stated under process. works start. 80.95%. in the RP): (i) schedule Changunarayan- of payment; (ii) records 91.83%. / receipts of payment. Lapsiphedi- 56.81%. 2.5 Provision of additional NEA Being complied. Additional Before Additional assistance for assistance for the vulnerable construction assistance for vulnerable affected affected persons has been works start. the vulnerable persons: (i) per type of calculated in proposed RP. affected persons has been

Item Safeguards Related Responsible Compliance status Completion Process to No. Requirements Agencies Deadline Date/ Remarks activities; (ii) schedule Same shall be distributed calculated in of implementation. after its approval. proposed RP.

2.6 Livelihood restore to NEA Being complied. During the the pre project level Livelihood restoration construction after the project trainings are not provided to works. implementation. the affected people. These training are included in the updated RP. This shall be taken up after approval of updated RP.

5 GRIEVANCE REDRESSAL MECHANISM AND ITS IMPLEMENTATION

An effective Grievance Redress Mechanism (GRM) is essential to achieve smooth progress of the project works by resolving issues and complaints in a timely and effective way. Grievance Redress is an inbuilt provision and mechanism of the Land Acquisition Act 1977. According to the Act, Chief District Officer (CDO), is the core responsible authority to deal and address the grievances related to land acquisition in Nepal. In development projects, generally CDO with the support of project manager, land acquisition committee members, representatives of political parties, and other stakeholders also use to form grievance readdress committee to solve the grievances related to land acquisition, compensation and implementation of the project.

Second option for grievance redressal available for affected persons is through Grievance Redress Committee (GRC) which is formed at the Project level to ensure that affected persons’ grievances are addressed and to facilitate timely project implementation. The grievances will be redressed by NEA officials at site level within 15 working days and the unsettled case will be referred to GRC which will take action within 30 working days. Grievances not redressed by the GRC will be referred to the appropriate court of law.

GRC has been formed at central level by The Project Manager (PM) of NEA’s PMD, to address grievances. The 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. If the AP is not satisfied with the decision of the GRC, then he/she will have the right to approach the appropriate court of law for redress. The main responsibilities of the GRC are to: (i) provide support to affected persons on problems arising from land/property acquisition and crop/tree compensation; (ii) record affected persons’ grievances, categorize, and prioritize grievances and resolve them within 4 weeks; (iii) immediately inform the EA (NEA) of serious cases; and (iv) report to DPs on developments regarding their grievances and decisions of the GRC and the EA. Other than disputes relating to ownership rights and apportionment issues, GRC will review grievances involving all resettlement benefits, compensation, relocation, replacement cost and other assistance. Grievances will be redressed within 4 weeks from the date of lodging the complaints and all cost related to GRM to be borne by the project. The GRCs will continue to function during the life of the Project including the defects liability period. The GRC is formed with the help of higher authority having authority to designate the representatives to the GRC. The proposed mechanism does not impede access to the country’s judicial or administrative remedies. The affected persons have the right to refer the grievances to appropriate courts of law at any stage of the process. The EA will ensure that affected persons have the right to approach court of law any time during the process of grievance redress activities.

Figure 1 Flow chart showing Grievance Redress Mechanism

As practiced in NEA projects, if there are grievances or suggestions, project affected families or local people submit/express their plea verbally or in written form to project officials. The submitted petition or suggestions will be initially reviewed by the project manager. On the matters related to general and technical issues or suggestions, the project team itself tries of resolve the issue. However, if the issues or suggestions are major and they need to be notified to CDO and NEA before any decisions are taken, the CDO and NEA are notified. Then the CDO, on a fixed date, in the presence of all relevant stakeholders, including the submitted grievances, discusses about the issues or suggestions and resolve the problems with the active involvement and consensus of the stakeholders. If unsatisfied with the CDO determination, affected persons will have their right to take the grievance up-to the Ministry of Home Affairs (MoHA). The MoHA normally makes decisions on a complaint within 15 days, unless further information is required, or unless the complaint have to be solved in a court of law. For effective implementation of the GRM the GRC formation of the PTDEEP sub-projects has been completed in substations namely Lapsiphedi, Changunarayan, Mulpani and Phutung while it is in the process for Barhabise substation. Some of the grievances and suggestions submitted in different PTDEEP subprojects by project affected families and other stakeholders and their status are summarized below: 5.1 RECEIVED GRIEVANCES/SUGGESTIONS AND STATUS

In total 11 grievances have been received till 31 December 2019. No further grievance has been received after that. Status of the old grievances has been updated and the Detail of collected grievances and its matrix and its status is presented below and related sample letters are attached in Annex 4.

A Grievance Redress Committee (GRC) has been formed in the Changunarayan, Lapsiphedi, Mulpani and Phutung with representatives of project, and representative of local. GRC is formed to ensure APs grievances are timely addressed and facilitate timely project implementation. The members of GRC in different subprojects are mentioned below. 3

Mulpani SS 1. Prakash Phuyal Ward Chief, Kageshwori Manahara Municipality 2. Kamala Dahal Ward member, Kageshwori Manahara Municipality 3. Pradip Adhikari Sociologist, NEA 4. Juju Ratna Shakya Project Manager, NEA 5. Devraj Prasai Administrative chief, NEA

Phutung SS 1. Sanokaji Khatri Ward Chief, Tarkeshwor Municipality 2. Ruku Pariyar Ward member, Tarkeshwor Municipality 3. Ramesh Gautam Sociologist, NEA 4. Juju Ratna Shakya Project Manager, NEA 5. Devraj Prasai Administrative chief, NEA

Changunarayan SS 1. Buddhilal Maharjan Ward Chief, Changunarayan Municipality 2. Sapana Tamang Ward member, changunarayan Municipality 3. Pradip Adhikari Sociologist, NEA 4. Juju Ratna Shakya Project Manager, NEA 5. Devraj Prasai Administrative chief, NEA

Lapsiphedi SS 1. Santa Bahadur Waiba Ward Chief, Shankarapur Municipality 2. Shanta Gautam Ward member, Shankarapur Municipality 3. Ramesh Gautam Sociologist, NEA 4. Juju Ratna Shakya Project Manager, NEA 5. Devraj Prasai Administrative chief, NEA

Table 5-1 Grievance Matrix

SN Submitted Grievances/Requests Response Status Changunarayan Substation 1 Protection of irrigation canal and The project has ensured to protect Resolved plants/trees near the entrance location private and public properties. to the substation site (March 2016). Besides, the protection of irrigation canal falls in disputed 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. Construction of the line has been completed on 4 Dec, 2019 3 Construction of access road nearby The project has assured to provide Resolved the substation for the locals’ easy 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.

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 (a)Not feasible land per Ana 300000, through committee (b)in case of no document of the (b) In case, no document for the land (b)Under is available with AP, matter shall be affected land, Project should provide process taken up with Govt. of Nepal and compensation according to the field appropriate compensation, as book, approved shall be provided (c)Not feasible (c)provide the shares 5000 per affected (c)Not applicable as this is not Hydro (d)Resolved household, generation project as referred by APs (d) providing the job according to (d) Local manpower will be given skills, preference according to skill through contractor. 4 Murali Tiwari and others has No document for the land is available Under process demanded for the compensation of the with AP. Matter shall be taken up land which they are using for decades with Govt. of Nepal and appropriate and have not got any sort of compensation, as approved shall be compensation till date. They provided. demanded to provide the amount from the social security fund of the project.

6 CONSULTATION, PARTICIPATION AND DISCLOSURE

The disclosure of project information has to be done well in advance of commencement of project construction works. At each stage, certain engagement activities are being conducted/will be conducted to keep the stakeholders informed and they will be continuously reached for their feedback. Information dissemination and consultation activities during preparation of this report were done to attain the following: (i) share available project information with the affected people; (ii) obtain information on the needs and priorities of the affected people including their feedback on proposed activities; (iii) involve the affected people and communities in project planning; and (iv) ensure transparency in all activities related to resettlement impacts, mitigation and compensation. The primary stakeholders of the proposed refurbishment of distribution line and substation are the end consumers including affected households that will benefit from the electricity that the project will provide. The other stakeholders are NEA, GoN and the local government units.

The provisions of the ADB policy and Government laws on land acquisition were also disclosed to the affected persons and their community. During the census and sample household survey, meaningful consultations were held in designated points. Views of the community were shared with NEA and the consultants. The socio-economic survey and the consultation meetings provided opportunity to draw out information on the development needs of the local people, the role of the distribution line in meeting these needs, the potential adverse impacts of the construction and operation phase and their recommendations on the mitigation and compensation of these impacts.

Table 6-1 Disclosure Plan

Activity Task Status Agencies Remarks

Census and Socio- economic survey Identified DPs and Completed from Consultative meetings on collected socio-economic November 2016 to - resettlement mitigation draft information March 2017 RP, May 2017

Consultative meetings on Discuss entitlements, Completed from resettlement mitigation at compensation rates, May 2016 to March EA-NEA/PMD the time of draft RP, May GRM 2017 2017

Publish list of affected Public Notification for Land lands/sites in the local Completed in EA acquisition newspaper, project January 2017 commencement details

Distribute leaflets or Publicize the draft RP, May Completed in June booklets in local EA 2017 2017 language

Full disclosure of the draft Distribute RP in local Completed in June EA RP, May 2017 to DPs language to DPs 2017

Web disclosure of the draft RP posted on ADB Completed in June EA RP, May 2017 websites 2017

Activity Task Status Agencies Remarks

Census and Socio- economic survey Identified DPs and Completed in consultative meetings on collected socio-economic - October 2019 resettlement mitigation for information updated RP, 2019

Consultative Meetings Consultative meetings Discuss entitlements, regarding on resettlement EA- compensation rates, resettlement mitigation at the time NEA/PMD GRM mitigation have of updated RP 2019 been conducted during the RP update. Distribution of EA- Project information information leaflets to Continuous PMD/ESSD/ dissemination DPs NEA

Updated RP is Full disclosure of the Distribute RP in local It is yet to be completed and updated RP 2019 to EA language to DPs completed under review at DPs PMD.

Updated RP is Web disclosure of the RP posted on ADB It is yet to be completed and EA updated RP 2019 websites completed under review at PMD.

NEA had consultation with affected communities to achieve feedback on perception of engagement during the pre-construction phase. The stakeholder engagement process for the vulnerable groups has/shall extensively use PRA techniques and has/shall be conducted separately. In case of involvement of indigenous people, such engagement has/shall especially ensure geographical integrity, cultural continuity and social hegemony. During the construction and operation phase, the active program of engagement with affected and interested parties to ensure that they will be kept informed and have an opportunity to continue a constructive dialogue about the Project with the project proponents.

6.1 CONSULTATIONS

The meaningful consultation ensures the presence of different categories of representatives (i.e. representative sampling) in the consultation process so as to obtain a balanced public opinion, equitable and non-discriminatory participation, provide transparent and factual information with prior information about the project, systematic documentation of the process, public disclosure of relevant parts etc. The number of consultations were carried out till the date whereas in this reporting period of semiannual social monitoring report no any formal consultations has been conducted.

7 KEY ISSUES AND RECOMMENDED CORRECTIVE MEASURES

The corrective measures for the issues are presented in the below table 7-1.

Table 7-1 Corrective Measures and Issues

SN Issues Corrective Measures Timeframe Responsibility 1 Disbursement of the Assist in the documentation process 2020 NEA compensation to the affected to expedite the compensation. December APs due to legal issues 2 Chapagaun land Issue Alternate land (identified at existing 2020 NEA because of land rate rejected Thimi switching station) to be December to collect the compensation finalized as alternate of Chapagaoun SS.

3 Recorded grievances Conduct regular GRC meetings to Continuous NEA/PMD resolution of all substations resolve the grievances. process

4 Payment for the other Expedite approval of updated RP to 2020 NEA/PMD/PSC resettlement assistance enlist the affected people who are December eligible for resettlement assistances. 5 Livelihood restoration training Expedite the approval of updated 2020 NEA/PMD/PSC to affected people RP to enlist the affected people who December are eligible for training. 6 GRC has not been formed yet Issuance of letter regarding 2020 August NEA/ESSD in Barhabise SS processes is formation of GRC to local going on for the formation of government and regular follow up. GRC 7 Land issue of Nain Prasad Project is contemplating to return 2020 July NEA Poudel to take whole land land to related person. otherwise not to accept the compensation.

The following recommendations are also suggested for the monitoring adjustment: • Finalization of RP to be expedited to avoid delay in distribution of rehabilitation assistance (including distribution to vulnerable people • Except following activities, other social safeguard activities are in complied / being complied. o Implementation of skill development trainings and livelihood restoration trainings for project affected families. o Recruitment of external monitor. o Disbursement of resettlement assistance to affected people. o Formation of GRC at Barhabise Substation. • Regular functionalization of GRC meetings for the unresolved grievances to resolve grievances based on the Grievance Redress Mechanism.

ANNEX 1: PROJECT LOCATIONS

Location of Project Substations

Changunaryan Substation Site

Lapsiphedi Substation Site

Phutung Substation Site

Mupani Substation Site

Annex 2: Status of Compliance with the Loan Covenants (Social Safeguard Related Covenants)

Covenants Responsible Status of Agencies Compliance Land Acquisition and Involuntary Resettlement

The Borrower shall ensure, and cause NEA to ensure, that all land and all NEA/GoN Being complied. rights-to-way required for the Project are made available to the Works contractor in accordance with the schedule agreed under the related Works contract and all land acquisition and resettlement activities are implemented in compliance with (a) all applicable laws and regulations of the Borrower relating to land acquisition and involuntary resettlement; (b) the Involuntary Resettlement Safeguards; and (c) all measures and requirements set forth in the respective RP, and any corrective or preventative actions set forth in a Safeguards Monitoring Report.

(FA-Schedule 5, para 10)

Without limiting the application of the Involuntary Resettlement NEA/GoN Being complied. Safeguards or the RP, the Borrower shall ensure, and cause NEA to ensure, that no physical or economic displacement takes place in connection with the Project until:

(a) Compensation and other entitlements have been provided to affected people in accordance with the RP; and (b) A comprehensive income and livelihood restoration program has been established in accordance with the RP. Indigenous Peoples

The(FA- BorrowerSchedule shall5, para ensure 11) and cause NEA to ensure, that the Project does NEA/GoN Complied. not impact indigenous peoples within the meaning of the SPS. If due to unforeseen circumstances, the Project impacts indigenous peoples, the Borrower shall take all steps necessary or desirable to ensure that the Project complies with all applicable laws and regulations of the Borrower relating to indigenous peoples and within the SPS

(FA-Schedule 5, para 12) Human and Financial Resources to Implement Safeguards Requirements The Borrower shall make available, and NEA to make available, NEA/GoN Being complied. necessary budgetary and human resources to fully implement the EMP 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 NEA/GoN 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 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) Safeguards Monitoring and Reporting

The Borrower shall clause NEA to do the following:

(a) Submit semi-annual Safeguards Monitoring Reports to ADB and NEA Complied 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 Being complied 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) NEA Being complied

Annex 3: GRIEVANCE REDRESSAL FOMATION LETTER OF SUBSTATIONS

Annex 4: GRC Matrix and Sample Local Concerns to the GRC Annex 4.1: GRC Matrix

SN Submitted Grievances/Requests Response Status Changunarayan Substation 1 Protection of irrigation canal and plants/trees near the The project has ensured to protect private and Resolved entrance location to the substation site (March 2016). public properties. Besides, the protection of irrigation canal falls in disputed land. 2 Demand for the distribution line by the locals. The Project has provided the cost for the Resolved construction of distribution line to the distribution department of NEA. Distribution wing is constructing the line. 3 Construction of access road nearby the substation for The project has assured to provide certain Resolved the locals’ easy access to temple. percentage of cost for the construction of access road based on the estimate provided by the locals.

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

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

(b)in case of no document of the affected (c)Not applicable as this is not Hydro generation (d)Resolved project as referred by APs land, Project should provide compensation (d) Local manpower will be given preference according to the field book, according to skill through contractor. (c)provide the shares 5000 per affected household, (d) providing the job according to skills, 4 Murali Tiwari and others has demanded for the No document for the land is available with AP. Under process compensation of the land which they are using for Matter shall be taken up with Govt. of Nepal and decades and have not got any sort of compensation appropriate compensation, as approved shall be till date. They demanded to provide the amount from provided. the social security fund of the project.

Annex 4.2: Sample Local Concerns to the GRC Changunarayan Substation

Annex 5: Photographs

Figure1: Discussing of ADB external monitoring Figure 2: Site Inspection and Dicussion on issues with Goma Poudel, on issues at Barhabise by the Enviromentalist (Narayan Pd. Khanal) with Substation site. Contractor (KEI) and Coordinator (Jade) at Budanilkantha site, Maharajgunj Distribution Centre.

Figure 3: Thermal Scanning of labours done before Figure 4: Temporary access road progress at starting the work at Maharajgunj Distribution Centre. Phutung S/S site (KVTCRP), June 2020.