Social Monitoring Report

Semiannual Report February 2018

AZE: Power Distribution Enhancement Investment Program, Tranche 1

Prepared by Project Supervision and Management Consultant for Azerishig Open Joint Stock Company and the Asian Development Bank.

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.

In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area 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.

Project Supervision and Management Consultant for

Power Distribution Enhancement Investment Program, Tranche 1 Republic of Azerbaijan

Semiannual Social Monitoring Report:

Status of Resettlement Implementation, July-December 2017

ADB Loan No. 3407-AZE Project No. 42401-015

For: Asian Development Bank (ADB)

“Azerishig” Open Joint Stock Company

4 January 2018

This report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents

ABBREVIATIONS

ADB - Asian Development Bank AP/AH - affected person/affected household AZN - Azerbaijan Manat (currency) CTS - compact transformer station DDR - due diligence review DMS - detailed measurement survey EA - executing agency IA - implementing agency LARF - land acquisition and resettlement framework LARP - land acquisition and resettlement plan MFF - multi-tranche financing facility OHL - overhead line OJSC - Open Joint Stock Company PIU - Project Implementation Unit PMC - Project Supervision and Management Consultant RESSD - Regional Energy Supply and Sales Department ROW - right-of-way SIW - self-insulated wire SPS - Safeguard Policy Statement (2009) SS - substation TL - transmission line

WEIGHTS AND MEASURES ha - hectare km - kilometer kV - kilovolt m - meter m2 - square meters

CONTENTS I. Background ...... 1 II. Objectives of the Social Monitoring Report ...... 3 III. Methodology ...... 3 IV. Status of Resettlement Implementation ...... 3 A. ADB concurrence to the DDR reports, LARP, and CAP ...... 4 B. Implementation of the CAP for Mr. Aghayev Zafar ...... 5 C. Implementation of the Zardab-Udjar LARP ...... 6 D. Progress of construction works and resettlement issues arising therefrom ...... 9 E. Grievance redress resolution ...... 10 V. Conclusion and recommendation ...... 10 VI. Appendices ...... 11 Appendix 1 August 2017 letter of Azerishig to the contractors ...... 12 Appendix 2 Status of Work on 110 kV Substations as of 16 December 2017 ...... 14 Appendix 3 Status of Work on 110 kV Lines as of 16 December 2017 ...... 15 Appendix 4 Status of Work on 35 kV Substations as of 16 December 2017 ...... 16 Appendix 5 Status of Work on 35 kV Lines as of 16 December 2017 ...... 16 Appendix 6 Status of Work on 0.4 kV SIW Conductors as of 16 December 2017 ...... 23 Appendix 7 Status of Work on 10/6 kV Distribution Lines as of 16 December 2017 ...... 23 Appendix 8 Empty logbooks from different contractors ...... 232

LIST OF TABLES Table I-1 RESSDs and Project Districts ...... 1 Table IV-1 Dates of Submission and Approval of DDR Reports, CAP, and LARP ...... 4 Table IV-2 Crops Grown on the Affected ROW Land ...... 6 Table IV-3 LARP Budget ...... 7 Table IV-4. Compensation distribution matrix…………………………………………………………8

LIST OF FIGURES Figure I-1: RESSD and Rayons in Tranche 1 ...... 2 Figure D-2: Shift of footprint of CTS ...... 9 Figure D-3: Photo of complaint logbook……………………………………………………………...10

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I. Background

1. The Government of Azerbaijan and the Asian Development Bank (ADB) have agreed to implement the Power Distribution Enhancement Investment Program in 3 tranches, starting in 2016 until 2022, as a multi-tranche financing facility (MFF). On 19 July 2016, ADB approved Loan 3407-AZE to finance the power program’s $350 million Tranche 1. Of this amount, $250 is being provided by ADB, while $75 million is government’s counterpart. Loan 3407-AZE became effective on 2 September 2016 and its closing date is on 30 June 2019. Project construction works are targeted for completion by 31 December 2018. Subprojects under Tranche 1 include, among others, the rehabilitation and expansion of aging medium- and low-voltage distribution networks comprising approximately 4 units of 110 kilovolt (kV) substations (SS); 16 units of 35 kV substations; 1,157 units of 6-10 kV transformer stations; 54 km of 110 kV distribution lines; 124 km of 35 kV distribution lines; and 1,237 km of 6-10 kV distribution lines.

2. The Azerishig Open Joint Stock Company (OJSC)1 is the executing agency, while the implementing agencies (IAs) are the respective Regional Energy Supply and Sales Department (RESSD) of the following cities and rayons2 (districts), namely, Baku, Shimal Garb, Janub, Garb, Aran, Shimal, and Markazi Aran. Districts covered by the Project are Absheron, Siyazan, Shamakhi, Oghuz, Gakh, Ganja, Goranboy, Mingechevir, Zardab, Saatli, Imishli, Neftchala, Salyan, Hajigabul, Masalli, and Lankaran. The Project Supervision and Management Consultant (PMC) provide day-to-day assistance to the EA. Table I-1 RESSDs and Project Districts RESSD Rayon Baku Absheron (Khirdalan, Alat) Shimal Siyazan (Sumgayit) Shimal Garb Gakh, Oghuz, Shamakhi Garb Ganja, Mingechevir Markazi Aran Goranboy Aran Saatli, Imishli, Zardab Janub Lankaran, Masalli, Neftchala, Hajigabul, Salyan

3. Until the end of the first half of 2017, Tranche 1 was categorized as C for involuntary resettlement. This categorization was subsequently changed to B in the third quarter of 2017 following two successive ADB safeguard missions in July and August 2017 where it was learned that a private landholding had been acquired in November 2016 in the expansion of the 110/35/10 kV Dalimammadli SS and that landholdings had to be acquired in the second half of 2017 for the footings of 9 steel lattice towers of the 35 kV overhead line (OHL) that runs from the 110/35/10 kV Udjar SS to the 35/10 kV Zardab SS3, not to mention temporary use of land and disruption in the farming activities of residents during the stringing of transmission towers.

4. This social monitoring report covers the period July-December 2017.

1 Referred to hereinafter as Azerishiq. 2 The country is divided into 10 economic regions, 66 rayons and 77 cities. Twelve of the cities, including Baku; Ganja; and Mingachevir, are directly governed by the central government. 3 These matters are discussed further in Section IV of this report. 1

Figure I-1: RESSD and Rayons in Tranche 1

Source: Initial Environmental Examination, August 2015

II. Objectives of the Social Monitoring Report

5. The project’s Facility Administration Manual (FAM) mandates the PMC to assist Azerishiq in preparing a semi-annual social safeguard monitoring report to be submitted to ADB for disclosure.4 As stipulated in the FAM, social safeguard monitoring is intended to ensure that “all land acquisition and resettlement activities, if any, are implemented in compliance with (i) all applicable laws and regulations of the Government relating to land acquisition and involuntary resettlement; (ii) the involuntary resettlement safeguards under ADB's Safeguards Policy Statement (2009); and (iii) all measures and requirements set forth in the resettlement plan, and any corrective or preventive actions set forth in the safeguards monitoring report.”5 III. Methodology

6. Information for this report has been culled from various social safeguard documents that Azerishiq and the PMC prepared and submitted to ADB in the second half of 2017, in addition to field reports prepared and submitted by PMC consultants to Azerishiq.

IV. Status of Resettlement Implementation

7. Following receipt of complaints from two persons6 in May 2017 and June 2017, ADB fielded a safeguard review mission on 2 – 7 July 2017 to look into the status of safeguard compliance in the Project. During that mission, it was found out that Azerishig acquired 0.36 ha from AP on 29 November 2016 for the expansion of the 110/35/10 kV Dalimammadli SS. On 21 – 25 August 2017, ADB fielded a follow-up safeguard mission. At the conclusion of the second safeguard review mission, Azerishig agreed to carry out a due diligence review (DDR) of each subproject of Tranche 1.

8. Also during the conclusion of the 21 – 25 August 2017 ADB follow-up safeguard mission, Azerishig agreed to prepare a LARP for 7 households at Qarabork village of Ujar region region, who were to lose a portion of their landholdings for the footings of lattice towers of the 35 kV Ujar-Zardab TL. In addition, Azerishig agreed to prepare a corrective action plan (CAP) to facilitate the belated payment of a special cash allowance to AP, who despite being a vulnerable project-affected person (AP), was not provided such cash allowance. Social safeguard specialists from the Project Implementation Unit (PIU) of Azerishiq and PMC, with assistance from the concerned RESSDs and contractors, collaborated in July – September 2017 in carrying out the DDRs and in preparing the aforementioned LARP and CAP.

4 Facility Administration Manual, Power Distribution Enhancement Investment Program, Tranche 1 (ADB Loan 3407- AZE/Project Number 42401-015), May 2016, p. 42. 5 Op cit., p. 52. 6 Mr. Hasanov Suleyman Gubad of Khoylu Village, Goranboy Region, in May 2017 wrote a complaint letter to ADB Azerbaijan Resident Mission (AZRM) alleging that the project contractor violated his property rights by erecting 4 electric posts (35 kV line) on his farmland. Investigation carried out by Arerishig and the regional energy authorities revealed that the alleged affected farmland did not belong to Mr. Hasanov. More importantly, the contractor transferred the 4 electric poles outside the contested landholding. Relatedly, Mr. Yediyarov Neman Gulam of Galma Village, Zaardab Region, on 19 June 2017 sent a telegram to AZRM complaining the contractor was not erecting electric posts (0.4 kV SIW line) in his village correctly. Site inspection carried out by project authorities on 21 June 2017 proved the allegation of Mr. Yediyarov to be wrong. Both Messrs. Hasanov and Yediyarov are not project-affected persons (APs). 3

A. ADB concurrence to the DDR reports, LARP, and CAP 9. Starting with the submission to ADB on 9 September 2017 of the revised DDR report for the 35 kV Overhead Line between 110/35/10 kV Sarijali SS and 35/10 kV Saatli SS, to which the Bank gave its approval on 14 September 2017, Azerishiq submitted in September and October 2017 four additional DDR reports, 1 LARP, and 1 CAP for ADB’s approval. Table IV-1 Dates of Submission and Approval of DDR Reports, CAP, and LARP Document Date of Date of Subproject Submitted Submission Approval 35/10 kV line between Saatli ss and 110/35/10 kV Sarjali ss DDR 9 Sept 2017 14 Sept 2017 35 kV Masalli-Aldavi TL DDR 18 Sept 2017 20 Sept 2017 Expansion of the 110/35/10 kV Dalimammadli SS CAP 21 Sept 2017 21 Sept 2017 110 kV Udjar-Zardab TL LARP 21 Sept 2017 26 Sept 2017 110 kV SS and TLs in Goranboy, Gakh, and Neftchala DDR 18 Oct 2017 Districts, in addition to Ganja City 35 kV SS and TLs in Shamkir, Imishli, Hajigabul, Lankaran, DDR 19 Oct 2017 30 Oct 2017 Gakh, Shamakhi, Siyazan, Masalli, Oghuz, Saatli, Zardab, and Abheron Districts, in addition to the Cities of Baku, Gaja, and Mingachevir 10/6 kV distribution lines and 0.4 kV self-insulated wires in DDR 6 Nov 2017 6 Nov 2017 Garadag, Hajigabul, Goranboy, Imishli, Saatli, Zardab, Shamkir, Gakh, Shamakhi, Oghuz, Neftchala, Masalli, Lankaran, and Siyazan Districts, in addition to the Cities of Khirdalan, Mingachevir, and Ganja

10. ADB agreed with the findings of the DDRs that no permanent acquisition of private landholdings occurred or would happen in the finished, on-going, and planned construction works of subprojects, except in the expansion of the 110/35/10 kV Dalimammadli SS and the construction of 9 steel lattice towers of the 110 kV Udjar-Zardab TL. Nevertheless, the DDRs identified potential temporary resettlement impacts during the construction and/or dismantling of steel lattice towers, poles, and substations and during the stringing of the towers. These potential temporary resettlement impacts include, among others, possible damages to fixed assets (e.g., structures) that are located close to the construction activities; hampered access to properties during trenching works for underground power lines; and damaged crops and farmlands during the stringing of steel lattice towers. The DDR reports identified measures to avoid and/or mitigate the aforementioned potential resettlement impacts, such as confining construction works within the existing right-of-way (ROW) of power lines and substations, and payment of compensation for any damages to private and public assets (See Appendix 1 for a copy of the August 2017 letter of Azerishig reminding the contractors of their obligation in the construction and dismantling of power lines in order to avoid adversely affecting any person).7 Site supervision engineers of PMC that are fielded in all subprojects have been tasked to monitor compliance by contractors to the mitigation measures spelled out in the DDR reports, in addition to receiving, registering on a logbook, and facilitating appropriate actions to resolve complaints of APs/AHs (project- affected households) and other stakeholders.

7 Provisions have been included in the contracts of work contractors that oblige them to negotiate directly with anybody whose property and/or livelihood would be damaged in the course of the construction, stringing and dismantling of towers and power lines in the project’s ROW. 4

11. In the case of the expansion of the 110/35/10 kV Dalimammadli SS, PIU personnel that carried out the DDR confirmed that AP received 1,700 AZN in compensation for the 0.36 ha that he agreed to sell to Azerishiq in November 2016. However, it was learned during the DDR that the AP had not been given the cash allowance for vulnerable APs, contrary to the requirements of the agreed 2015 Land Acquisition and Resettlement Framework (LARF). A CAP had to be prepared to address this omission.

12. Although 9 APs that were affected by the loss of land in connection with the construction of steel towers for the 35 kV Zardab-Udjar TL, the LARP was prepared primarily for 7 of the APs; these APs were cultivating portions of the ROW land of the existing (old) 35 kV OHL. The other 2 APs (one of them had land title over his affected property, another one was using the land plot without legal entitlement with connections to utility services) and they executed a deed of voluntary donation8 bequeathing a portion of their properties in favor of Azerishiq for the construction of a tower each on their land.

B. Implementation of the CAP for AP in Dalimammadli town 13. The DDR conducted in August 2017 at the 110/35/10 kV Dalimammadli SS by personnel of the PIU confirmed that the 1,700 AZN land compensation paid to AP was above market rates prevailing at the time of land acquisition in November 2016 (i.e., 4,530 AZN/ha or 1,631 AZN for the 0.36 ha acquired land). Relatedly, the DDR found out that the AP, while having lost the equivalent of more than 40% of his total landholdings, could not be considered as severely affected per ADB 2009 Safeguard Policy Statement (SPS); the AP’s land adjoining the Dalimammadli SS had been idle for more than a decade because it was not productive. Therefore, the household of AP was not deriving any economic benefit from the subject landholding. The livelihood of the household of AP depends mainly on his 140 AZN monthly salary, in addition to his monthly government pension of 326 AZN being a veteran of the Garabag War. However, as mentioned earlier, AP was not given his cash allowance for vulnerability. The AP falls under Group 1 for disability under present regulations.9

14. Per the agreed LARF, the AP was entitled to (i) a one time cash allowance equivalent to the prevailing minimum salary in the locality multiplied by 3 months, and (ii) priority for employment in project-related jobs, training opportunities, self- employment and wage- employment assistance. None of the aforementioned was provided to the AP. When PIU personnel met with AP in August 2017 during the DDR, he was informed about his entitlements. The AP, however, averred that there was nobody in his household who was capable to work in the project’s construction activities. Thus, the focus of the CAP was to

8 Each of the signed voluntary donation listed the conditions that had to be met to make the donation compliant with the ADB 2009 Safeguard Policy Statement (SPS), paraphrased as follows (i) land loss is marginal; (ii) land loss does not result to relocation or loss of income on the part of the AP; (iii) the AP making the donation would benefit from the project; (iv) land donated is free from encumbrance; (v) AP is well informed about his/her entitlements and consultations with the AP is documented; and (vi) the donation is supported with transfer of land titles. 9 Group 1 covers persons suffering from limitations of vital activity (e.g., motion; self-service; labor activity) as a result of disease, trauma, or congenital defects, and is permanently in need of another person’s help or care. (Corrective Action Plan for Social Safeguards, Power Distribution Enhancement Investment Program, Tranche 1 [ADB Loan 3407-AZE/Project Number 42401-015], September 2017. 5

ensure that the AP is paid his special allowance for vulnerability amounting to 348 AZN (i.e., 116 AZN/minimum monthly salary multiplied by 3 months).

15. Following receipt of ADB’s approval of the CAP, the PIU Environmental and Social Safeguard Specialist, accompanied by site supervision engineers of the PMC, delivered the 348 AZN special allowance for vulnerability to the household of AP. The AP’s wife in the presence of their son received on behalf of the AP the special allowance of 348 AZN for vulnerability; the AP at the time of the visit was out of town in Naftalan for his regular medical treatment.

16. In connection with the preparation of the CAP’s completion report, the PMC’s social safeguard expert on 1 November 2017 met with AP in Dalimammadli Town to confirm whether or not PIU had indeed paid his special allowance for vulnerability in the amount of 348 AZN. The AP confirmed to the PMC social safeguard expert that on 5 October 2017 his wife in the presence of their son received 348 AZN from the PIU’s environmental/social specialist.

C. Implementation of the Zardab-Ujar LARP 17. The 7 APs whose farming activities in Garabork Village extended into the ROW of the existing 35 kV OHL did not contest the fact that they were farming inside the OHL’s ROW. The detailed measurement survey (DMS) that PIU carried out in late August 2017 found wheat, clover, cotton, and 6 mulberry saplings on the 891 m2 of ROW land that the construction and stringing of 8 steel lattice towers needed.10 Table IV-2 Crops Grown on the Affected ROW Land

Crop Area (m2) Wheat 205 Clover 660 Cotton 21 Mulberry tree sapling 5 Total 891 Source: Zardab Rayon LARP, 20 September 2017

18. Consistent with the agreed 2015 LARF, the 7 APs were not entitled to compensation for the affected lands they were tilling but for improvements (i.e., crops, including improvements to make the land productive) found or introduced thereat. For this reason, Azerishig in August 2017 engaged an independent firm to determine the prevailing market rates of lands in the locality. The market study suggested a rate of between 4,000 AZN (Azerbaijan Manat) and 8,000 AZN per hectare (ha). Azerishig opted to offer 6,000 AZN/ha in compensation for the permanently and temporarily affected landholdings of the 7 APs. Compensation for crops found on the affected landholdings were also calculated based on prevailing market rates. ADB on 26 September 2017 gave its concurrence to the LARP.

10 The 8 steel lattice towers were all suspension towers with a footprint of 5 m2 each. This area had to be recovered permanently from the 7 APs. In addition, approximately 851 m2 were to be affected temporarily, i.e., standing crops thereat would be destroyed and the cultivated land altered, during the stringing of the 8 towers. 6

Table IV-3 LARP Budget Total Cost (AZN) Budget Item Affected Assets Unit AZN US$ Compensation for land 891 m2 0.6 AZN/m2 535 315 Compensation for crops 205 m2 wheat 0.34 AZN/m2 96 56 655 m2 clover 0.11 AZN/m2 21 m2 cotton 0.1 AZN/m2 Compensation for six 1~2 years old 6 36 21 mulberry sapling Sub-total 667 392 Miscellaneous cost (15% of sub-total, rounded) 100 59 Grand Total 767 451 Source: Zardab Rayon LARP, 20 September 2017

19. The responsibility for implementation of the LARP was assigned to PIU of Azerishig OJSC through its Environmental and Social Safeguard Specialist who was assisted by the PMC’s international social safeguard expert. Local authorities (Representative of Ujar region Executive Power Office in Qarabork village and municipality of Garabork village of Ujar region) and representatives of Contractor involved in the sub-project were also involved to the implementation of the LARP.

20. On 2 November 2017, International social safeguard expert of PMC, accompanied by PIU’s environmental and social specialist (team), travelled to Garabork Village for the purpose of delivering payment of compensation to the 7 DPs.

21. The team visited representative office of Ujar Executive Power in Qarabork village and met with head of representation and village municipality asking their assistance for distribution of payments to the 7 DPs. After phone calls made to DPs head of the representative clarified that it will be very difficult to find a common time for the DPs to assemble in the village office or to go their homes as majority of them are engaged in different activities in neighboring regions.

22. In their capacity as representatives of the District Executive Power, the head of representative office and his deputy proposed that they would go to the individual residences of the DPs within the week to deliver their compensation money.11 The team explained to the head of representative office the compensation method and amount to be paid to each DP based on the LARP for further delivering of the explanation to DPs by them.

23. However, the village officials explained that it would be more reasonable and fair to divide compensation budget equally rather than giving compensation based on crops lost. He explained that for farmers the main money consuming issue is preparation of land plots for cultivation, i.e. tilling and harrow works, which cost 35 AZN each and requires involving of agricultural machinery and this assistance would be more expedient and helpful to DPs. So, after consultations between the participants it was decided that two of DPs, should receive 125 AZN each, while the 5 other DPs would receive 90 AZN each. The 2 DPs that were

11 This is consistent with the Zardab Rayon LARP as enunciated in Chapter 8 (Institutional Arrangements). 7

entitled to get 125 AZN each had more farmlands affected (mulberry sapling) than the others (See Table 3 for details).

Table IV-4. Compensation distribution matrix

Total Cost (AZN) Budget Item Affected Assets Unit AZN

Compensation for tilling for 5 1 ha per DP 35 AZN per 175 DPs ha Compensation for harrow for 5 1 ha per DP 35 AZN per 175 DPs ha Compensation for crops 205 m2 wheat 0.34 AZN/m2 100 for 5 DPs 655 m2 clover 0.11 AZN/m2 21 m2 cotton 0.1 AZN/m2 Compensation for mulberry twenty 1~2 years old 25 250 saplings for 2 DPs sapling Sub-total 700 Grand Total 700

24. On 5 November 2017, the head of representative office informed PIU that all 7 DPs had been paid their compensation money and originals of the receipts were delivered to PIU office shortly.

25. ADB fielded safeguard review mission of the project on 12-14 December 2017 during which the mission visited Dalimammadli town for verification of compliance of CAP and LARP implementation to ADB’s safeguard policies and procedures. The mission met with AP (i.e. his son, due to absence of AP) in Dalimammadli substation and interviewed him with regard to receiving payment for vulnerability status, where the receipt was confirmed by AP.

26. The next visit of the mission was to Qarabork village of Ujar region for verification of compliance of implementation of Zardab-Ujar LARP. The meeting with APs was held in municipality of the village with participation of village officials. The APs were interviewed by the mission related the compensation received for damage to their cultivated land plots and crops, receipt of which was confirmed by all APs. Afterwards the mission visited land plots of APs affected by transmission line, and 2 households who donated land plot to the project for placement of towers while having a short conversation with one of donators.

27. Upon completion of the safeguard review mission the PIU of Azerishig prepared and submitted (December 26, 2017) to ADB final compliance reports for CAP in Dalimammadli and LARP for Zardab-Ujar regions, where the compliance with the ADB Safeguard Policy Statement (2009) and the Project LARF (2015), as well as to the active legislation of Azerbaijan was claimed.

D. Progress of construction works and resettlement issues arising therefrom 28. Construction works on the 110 kV substations have all been completed and considered closed for resettlement as of submission in September 2017 of the DDR report on these subprojects (see Appendix 2 for details). The same is true for the 110 kV lines that have all been completed and considered closed for resettlement as of submission in September 2017 of the DDR report on these subprojects (see Appendix 3 for details). With regards works on the 35 kV substations, they are at various stages of completion and are to be finished by end of December 2017 (see Appendix 4 for details). Regarding the 35 kV lines, all but 2 subprojects have been completed and could be considered as closed for resettlement as of 16 December 2017. The 2 incomplete subprojects are the (i) 35 kV OHL between the 110/35/10 kV Imishli SS and 35/20 kV Rasullu SS (94% done), and (ii) 35 kV OHL between the 110 kV Siyazan SS and 35 kV Siyazan SS (98% done). Works on these 2 subprojects are up for completion by end of December 2017 (see Appendix 5 for details).

29. Meanwhile, works on the 0.4 kV self-insulted wire (SIW) subprojects are at various stages of completion but are due to be finished by end of December 2017 (see Appendix 6 for details). Similarly, works on the 10/6 kV distribution line subprojects are at various stages of completion but are due to be finished by end of December 2017 (see Appendix 7 for details).

30. A complaint from a resident that claimed ownership over a plot on which a compact transformer station (CTS) of the 10 kV line from the 35/10 kV Oghuz SS was to be constructed had been resolved with the prompt transfer by the contractor of the same to a plot owned by the municipal government (See Figure 2).

31. Likewise, a local resident at Alyat Settlement in Baku City complained when the contractor of the 35/6 kV Alyat Baghlari SS used his empty land to stockpile construction materials (See Figure 3). The contractor promptly transferred the construction materials and resolved the complaint.

E. Grievance redress resolution 32. Despite having been provided with logbooks on which to register and track the resolution of complaints, work contractors and PMC site supervision engineers are not in the habit of using the logbooks. A visit in November 2017 by PIU staff and PMC consultants to various subprojects found empty logbooks only (See Appendix 8), notwithstanding, for instance, the two aforementioned complaints that were promptly resolved. It is fairly safe to presume that minor complaints come about in the construction of the various subprojects, but these are promptly and quietly addressed and resolved in situ by the contractors.

V. Conclusion and recommendation 33. In conclusion and as stipulated in the FAM, this report takes the position that resettlement in Tranche 1 of the Power Enhancement Investment Program is being carried out “in compliance with (i) “all applicable laws and regulations of the Government relating to land acquisition and involuntary resettlement; (ii) the involuntary resettlement safeguards under ADB's Safeguards Policy Statement (2009); and (iii) all measures and requirements set forth in the resettlement plan, and any corrective or preventive actions set forth in the safeguards monitoring report”. However, the PIU ad PMC consultants at Azerishiq project office in Baku should exercise vigilance in regularly monitoring the progress of work of unfinished subprojects and ensure that complaints from stakeholders, if any, are promptly resolved and put to closure.

VI. Appendices

Appendix 1. August 2017 letter of Azerishig to the contractors

English translation of the Azerishig letter from August 2017:

Appendix 2. Status of Work on 110 kV Substations as of 16 December 2017

Work Upcoming status as LAR Issues reported Status of Work as LAR Issues as of Substation Location Contract works as of 28 Contractor of 28 in 28 September of 16 December 16 December Description (rayon/city) number September 2017 September 2017 DDR 2017 2017 DDR 2017 DDR 110/35/10 kV 2x40 Goranboy Anadolu Elektrik AI/ADB-1.1 Civil works Dismantling of CAP implementation Dismantling of None MVA rayon Sanayi ve completed old substation (payment of special old substation Dalimammadli Ticaret A.Ş. allowance to 1 substation vulnerable AP) 110/35/10 kV 2x40 Ganja City Retro Holding AI/ADB-1.2 Civil works Dismantling of None Dismantling of None MVA LLC completed old substation old substation Mashingayirma substation 110/35/10 kV 2x40 Gakh rayon Gidromashservis AI/ADB-2.1 Civil works Dismantling of None Dismantling of None MVA Gakh LLC completed old substation old substation substation

110/35/10 kV 2x40 Neftchala IMA Energy LLC AI/ADB-2.2 Civil works Dismantling of None Dismantling of None MVA Neftchala rayon completed old substation old substation substation

Appendix 3. Status of Work on 110 kV Lines as of 16 December 2017

Work Upcoming LAR Issues status as works as of Status of Work as LAR Issues as of Location Contract reported in 28 Line description Contractor of 28 28 of 16 December 16 December (rayon/city) number September 2017 September September 2017 2017 DDR 2017 DDR 2017 DDR 110 kV line with Ganja and Retro Holding AI/ADB- Completed None None/closed closed closed diversification of Goranboy 6.1 1st and 2nd Ganja rayons line up to Dalimammadli substation (2x2000m) Reconstruction of Ganja city Retro Holding AI/ADB-7 Completed None None/closed closed closed 110 kV line between 110 kV Ganja 2 substation and 110 kV Mashingayirma substation (2x2000 m) Reconstruction of Zagatala and Retro Holding AI/ADB-7 Completed None None/closed closed closed 110 kV line from Gakh rayons Gakh substation with diversification of the 1st and 2nd Zagatala lines (2x12800 m) 110 kV line Salyan and Azerelektrikshebeketikinti AI/ADB- Completed None None/closed closed closed between 110 kV Neftchala LLC 8.1 Salyan and 110 kV rayons Neftchala substations (2x37000 m)

Appendix 4. Status of Work on 35 kV Substations as of 16 December 2017 Work status LAR Issues Upcoming works Status of Work LAR Issues as Substation Location Contract as of 27 reported in 27 Contractor as of 27 September as of 16 of 16 Description (rayon/city) number September September 2017 2017 DDR December 2017 December 2017 2017 DDR DDR 35/6 kV Alyat Alyat AZNOF and SMTS LLCs AI/ADB-5.1 • Earth works • Inner roads None -Progress 85% One complaint Baghlari Settlement • Foundation pavement -works to be made by local substation of Baku City works • Installation of 35 completed by resident who • Construction and 6 kV end of lives close to of substation switchgears December the substation building • Installation of 10 related with • Landscaping MVA blockage of transformers road by • Installation of Contractor with transformer construction feeders materials. The issue promptly addressed and solved by the Contractor. 35/6 kV Ganja City Anadolu Elektrik Sanayi AI/ADB- • Earth works • Construction of None -Progress 87% None Vagzalyani-1 ve Ticaret A.Ş. 3.2 • Foundation substation -works to be substation works building completed by • Landscaping end of • Inner roads December pavement • Installation of 35 and 6 kV switchgears • Installation of 10 MVA transformers • Installation of transformer feeders 35/10/6 kV Ganja City Anadolu Elektrik Sanayi AI/ADB- • Earth works • Inner roads None -Progress 86% None Yeni Ganja ve Ticaret A.Ş. 3.2 • Foundation pavement -works to be substations works • Installation of 35, completed by • Construction 10 and 6 kV end of of substation switchgears December building • Installation of 10 • Landscaping MVA transformers • Installation of transformer feeders

Work status LAR Issues Upcoming works Status of Work LAR Issues as Substation Location Contract as of 27 reported in 27 Contractor as of 27 September as of 16 of 16 Description (rayon/city) number September September 2017 2017 DDR December 2017 December 2017 2017 DDR DDR 35/6 kV Mingachevir Anadolu Elektrik Sanayi AI/ADB- • Earth works • Installation of 10 None -Progress 97% None Mingachevir City veTicaret A.Ş. 3.1 • Foundation MVA transformer -works to be substation works • Installation of completed by • Construction transformer end of of substation feeders December building • Inner roads pavement • Landscaping • Installation of 35 and 6 kV switchgears 35/10 kV Khirdalan AZNOF and SMTS LLCs AI/ADB- • Earth works • Inner roads None -Progress 73% None Khirdalan City 5.1 • Foundation pavement -works to be substation works • Installation of 35 completed by • Construction and 6 kV end of of substation switchgears December building • Installation of 16 • Landscaping MVA transformers • Installation of transformer feeders 35/10 kV Shamkir Anadolu Elektrik Sanayi AI/ADB- • Earth works • Inner roads None -Progress 97% None Shamkir-2 rayon ve Ticaret A.Ş. 3.2 • Foundation pavement -works to be substation works • Installation of 35 completed by • Construction and 10 kV end of of substation switchgears December building • Installation of 10 • Landscaping MVA transformers • Installation of transformer feeders 35/10 kV Imishli Anadolu Elektrik Sanayi AI/ADB- • Earth works • Inner roads None -Progress 96% None Rasullu rayon ve Ticaret A.Ş. 5.2 • Foundation pavement -works to be substation works • Installation of 35 completed by • Construction and 10 kV end of of substation switchgears December building • Installation of 10 • Landscaping MVA transformers • Installation of transformer

35/10 kV Hajigabul Anadolu Elektrik Sanayi AI/ADB- • Earth works • Installation of 35 None -Progress 69% None Pirsaat rayon ve Ticaret A.Ş. 4.2 • Foundation and 10 kV -works to be substation works switchgears completed by • Construction • Installation of 10 end of of substation MVA December building transformers • Inner roads • Installation of pavement transformer • Landscaping feeders 35/10 kV Lankaran Anadolu Elektrik Sanayi AI/ADB- • Earth works • Inner roads None -Progress 59% None Sapnakaran rayon ve Ticaret A.Ş. 4.2 • Foundation pavement -works to be substation works • Landscaping completed by • Construction Installation of 35 end of of substation and 10 kV December building switchgears • Installation of 10 MVA transformers • Installation of transformer feeders 35/10 kV Ilisu Gakh rayon AzerElektrikShebekeTikinti AI/ADB- • Earth works • Inner roads None -Progress 98% None substation JSC 4.1 • Foundation pavement works to be works • Landscaping completed by • Construction • Installation of 35 end of of substation and 10 kV December building switchgears • Installation of 10 MVA transformers • Installation of transformer feeders 35/10 kV Shamakhi AzerElektrikShebekeTikinti AI/ADB- • Earth works • Inner roads None -Progress 78% None Shamakhi rayon JSC 4.1 • Foundation pavement -works to be substation works • Landscaping completed by • Construction • Installation of 35 end of of substation and 10 kV December building switchgears • Installation of 10

Work status LAR Issues Upcoming works Status of Work LAR Issues as Substation Location Contract as of 27 reported in 27 Contractor as of 27 September as of 16 of 16 Description (rayon/city) number September September 2017 2017 DDR December 2017 December 2017 2017 DDR DDR MVA transformers • Installation of transformer feeders 35/6 Siyazan Siyazan Anadolu Elektrik Sanayi AI/ADB- • Earth works • Installation of 10 None -Progress 96% None substation rayon ve Ticaret A.Ş. 3.1 • Foundation MVA transformer -works to be works • Installation of completed by • Construction transformer end of of substation feeders December building • Inner roads pavement • Landscaping • Installation of 35 and 6 kV switchgears 35/10 kV Oghuz AzerElektrikShebekeTikinti AI/ADB- • Earth works • Inner roads None -Progress 98% None Oghuz rayon JSC 4.1 • Foundation pavement -works to be substation works • Landscaping completed by • Construction • Installation of 35 end of of substation and 10 kV December building switchgears • Installation of 10 MVA transformers • Installation of transformer feeders 35/10 kV Alvadi Masalli Anadolu Elektrik Sanayi AI/ADB- • Earth works • Installation of 35 None -Progress 97% None substation rayon ve Ticaret A.Ş. 4.2 • Foundation and 10 kV -works to be works switchgears completed by • Construction • Installation of 10 end of of substation MVA December building transformers • Inner roads • Installation of pavement transformer • Landscaping feeders 35/10 kV Saatli Saatli rayon Anadolu Elektrik Sanayi AI/ADB- • Earth works • Inner roads None -Progress 97% None substation veTicaret A.Ş. 5.2 • Foundation pavement -works to be works • Installation of 35 completed by • Construction and 10 kV end of of substation switchgears December building • Installation of 10

Appendix 5. Status of Work on 35 kV Lines as of 16 December 2017 Work status Upcoming LAR Issues Location Status of Work LAR Issues as Contract as of 27 works as of reported in 27 Line description (rayon/ Contractor as of 16 of 16 December number September 27 September September 2017 City) December 2017 2017 2017 DDR 2017 DDR DDR 35 kV line between 110 Shamkir rayon Retro Holding AI/ADB-7 Completed None None. Sub- Closed Closed kV Dallar-Darti and 35 project kV Shamkir-2 considered as substations (2x8100 m closed in of overhead and connection with 2x2000 m of LAR underground cable lines) 35 kV overhead line Imishli rayon Elektrik AI/ADB-6.2 • Civil works • 4 towers None • Progress 94% None between 110/35/10 kV Qurashdirma • 49 towers • Stringing of • To be Imishli and 35/20 kV Muassisasi conductor completed by Rasullu substations and Global end of (2x6000 m) Export LLCs December 35 kV line between Hajigabul rayon Elektrik AI/ADB-8.2 • Civil works Dismantling of None Progress 97% None 110/35/6 kV Alyat and Qurashdirma • 91 towers old line completed 35/6 kV Atbulag Muassisasi except substations (2x14600 and Global connection to m) Export LLCs the s/s 35 kV line between 110 Lankaran rayon Elektrik AI/ADB-8.2 Completed None None/closed Progress 97% Closed kV Lenkaran-1 and 35 Qurashdirma completed kV Sapnakaran Muassisasi except substations (2x1200 m) and Global connection to Export LLCs the s/s 35 kV line between 110 Gakh rayon Retro Holding AI/ADB-7 Completed None None/closed Progress 97% Closed kV Gakh and 35 kV completed YeniIlisu substations except (2x12800 m) connection to the s/s 35 kV line between 110 Shamakhi Retro Holding AI/ADB-7 • Civil works • Wire None Progress 97% Closed kV Shamakhi-3 and 35 rayon • Installation stringing completed kV Shamakhi of 23 towers works except substation (2x3000 m) connection to the s/s 35 kV line between 110 Siyazan rayon Retro Holding AI/ADB-7 • Civil works • Wire None Progress 98% None kV Siyazan and 35 kV • 12 towers stringing To be completed Siyazan substations works by end of (2x3500 m) • Dismantling December of old line 35 kV line between 110 Khirdalan City Elektrik AI/ADB-6.2 Completed None None/closed Progress 97% Closed kV Aliaga Vahid and 35 of Absheron Qurashdirma completed kV Khirdalan rayon Muassisasi except substations (2x6000 m) and Global connection to Export LLCs the s/s

Work status Upcoming LAR Issues Location Status of Work LAR Issues as Contract as of 27 works as of reported in 27 Line description (rayon/ Contractor as of 16 of 16 December number September 27 September September 2017 City) December 2017 2017 2017 DDR 2017 DDR DDR 35 kV line between Alyat Elektrik AI/ADB-6.2 • Civil works Dismantling of None Progress 97% Closed 110/35/6 Alyat and settlement of Qurashdirma • 64 towers old line completed 35/6 kV Alyat Baghlari Baku City Muassisasi except substations (2x10000 and Global connection to m) Export LLCs the s/s 35 kV line between 110 Ganja City Retro Holding AI/ADB-7 • Civil works Dismantling of None Completed Closed kV Ganja-3 and 35 kV • 19 towers old line Vaghzalyani-1 substations (2x1500 m) 35 kV line between Ganja City Retro Holding AI/ADB-7 Completed None None/closed closed Closed 110/35/10 kV Mashingayirma and 35 kV Yeni Ganja substations (2x2100 m) 35 kV line between 110 Mingachevir Retro Holding AI/ADB-6.1 Completed None None/closed Completed Closed kV Shahar and 35 kV City except Mingachevir installation of substations (2x4200 m) optic cable 35 kV line between 110 Oghuz rayon Retro Holding AI/ADB-7 • Civil works Dismantling of None Completed Closed kV Azersu and 35 kV • 25 towers old line Oghuz substations (2x3000 m) 35 kV line between Ujar and Retro Holding AI/ADB-6.1 • 143 towers • 16 towers* LARP Completed Closed 110/35/10 kV Ujar and Zardab rayons • Wire implementation 35/10 kV Zardab stringing (land acquisition substations (2x30000 works and payment for m) • Dismantling affected crops) of old line Construction of the Saatli Rayon Elektrik AI/ADB-6.2 • - 70 towers • None Completed Closed double-circuit 35 kV Qurashdirma • -Stringing line between 110/35/10 Muassisasi works: 11 kV Sarijali and 35/10 and Global km kV Saatli substations Export LLC Construction of the Masalli rayon Elektrik AI/ADB-8.2 • -55 towers • None Completed Closed double-circuit 35 kV Qurashdirma • -Stringing line between 110/35/10 Muassisasi works: 5.35 kV Masalli and 35/10 and Global km kV Alvadi substations Export LLC

Appendix 6. Status of Work on 0.4 kV SIW Conductors as of 16 December 2017 Work LAR Issues status as Upcoming works Status of Work LAR Issues as of Location Contract reported 17 Line description Contractor of 17 as of 17 October as of 16 16 December (rayon/city) number October 2017 October 2017 DDR December 2017 2017 DDR 2017 DDR 0,4 kV SIW Alyat Stone AI/ADB-9.2 38 % works • 0.4 kV poles None -45 % works None conductor (215.3 Settlement of Construction completed • SIW conductors completed km) from Garadagh LLC -Construction 35/10 kV from CTC rayon /installation works feed by "Alat to be completed by Baghları" SS end of December 0,4 kV SIW Khirdalan city Stone AI/ADB-9.2 32 % works • 0.4 kV poles None -63 % works None conductor (385.2 Construction completed • SIW conductors completed km) from LLC -Construction CTC feed by 35/10 /installation works kV "Xırdalan" SS to be completed by end of December 0,4 kV SIW Mingachevir Vest Ltd AI/ADB-10.2 65 % works • 0.4 kV poles None -92 % works None conductor (215.29 City completed • SIW conductors completed km) from -Construction CTC feed by 35/6 /installation works kV "Mingachevir" to be completed by SS end of December 0,4 kV SIW Goranboy Vest Ltd. AI/ADB-10.2 90 % works • 0.4 kV poles None -97 % works None conductor (295.6 rayon completed • SIW conductors completed km) from -Construction CTC feed by /installation works 110/35/10 kV to be completed by "Dalimammadli" SS end of December 0,4 kV SIW İmishli rayon Universal AI/ADB-11.2 95 % works • 0.4 kV poles None -95 % works None conductor (80.9 km) Elektroservis completed • SIW conductors completed from -Construction CTC feed by 35/10 /installation works kV "Rasullu" SS to be completed by end of December 0,4 kV SIW Saatli rayon Universal AI/ADB-11.2 96 % works • 0.4 kV poles None -97 % works None conductor (103.4 Elektroservis completed • SIW conductors completed km) from -Construction CTC feed by 35/10 /installation works kV "Saatlı" SS to be completed by end of December 0,4 kV SIW Zardab rayon Universal AI/ADB-11.2 62 % works • 0.4 kV poles None -68 % works None conductor (316.4 Elektroservis completed • SIW conductors completed km) from -Construction CTC feed by 35/10 /installation works kV "Zardab" SS to be completed by end of December

Work LAR Issues status as Upcoming works Status of Work LAR Issues as of Location Contract reported 17 Line description Contractor of 17 as of 17 October as of 16 16 December (rayon/city) number October 2017 October 2017 DDR December 2017 2017 DDR 2017 DDR 0,4 kV SIW Ganja city Vest LTD AI/ADB-12.2 54 % works • 0.4 kV poles None -83 % works None conductor (316.4 completed • SIW conductors completed km) from -Construction CTC feed by 35/6 /installation works kV "Vağzalyanı-1" to be completed by Ss, 35/10/6 kV end of December "Yeni Gəncə" Ss and 110/35/10 kV "Mashınqayırma" SS 0,4 kV SIW Shamkir rayon Vest LTD AI/ADB-12.2 92 % works • 0.4 kV poles None -97 % works None conductor (114.8 completed • SIW conductors completed km) from -Construction CTC feed by 35/10 /installation works kV "Shamkir-2" SS to be completed by end of December 0,4 kV SIW Gakh rayon Vest LTD AI/ADB-13.2 48 % works • 0.4 kV poles None -97 % works None conductor (123.6 completed • SIW conductors completed km) from -Construction CTC feed by 35/10 /installation works kV "İlisu" SS to be completed by end of December 0,4 kV SIW Shamakhi Vest LTD AI/ADB-13.2 40 % works • 0.4 kV poles None -93 % works None conductor (231.2 rayon completed • SIW conductors completed km) from -Construction CTC feed by 35/10 /installation works kV "Shamakhı" SS to be completed by end of December 0,4 kV SIW Oghuz rayon Vest LTD AI/ADB-13.2 98 % works • 0.4 kV poles None -98 % works None conductor (235.31 completed • SIW conductors completed km) from -Construction CTC feed by 35/10 /installation works kV "Oghuz" SS to be completed by end of December 0,4 kV SIW Neftchala rayon İMA Energy AI/ADB-14.2 86 % works • 0.4 kV poles None -95 % works None conductor (68.2 km) completed • SIW conductors completed from -Construction CTC feed by /installation works 110/35/6 kV to be completed by "Neftchala" SS end of December 0,4 kV SIW Masalli rayon İMA Energy AI/ADB-14.2 82 % works • 0.4 kV poles None -95 % works None conductor (169.7 completed • SIW conductors completed km) from -Construction CTC feed by 35/10 /installation works kV "Alvadi" SS to be completed by

0,4 kV SIW Lankaran rayon İMA Energy AI/ADB-14.2 70 % works • 0.4 kV poles None -81 % works None conductor (210.67 completed • SIW conductors completed km) from -Construction CTC feed by 35/10 /installation works kV "Sapnakaran" to be completed by SS end of December Hajiqabul rayon İMA Energy AI/ADB-14.2 88 % works • 0.4 kV poles None -90 % works None 0,4 kV SIW completed completed conductor (139.01 • SIW conductors -Construction km) from /installation works CTC feed by 35/6 to be completed by kV "Pirsaat" SS end of December 0,4 kV SIW Siyazan rayon Vest LTD AI/ADB-15.2 78 % works • 0.4 kV poles None -95 % works None conductor (511.88 completed • SIW conductors completed km) from -Construction CTC feed by 35/6 /installation works kV "Siyazan" SS to be completed by end of December

Appendix 7. Status of Work on 10/6 kV Distribution Lines as of 16 December 2017 Work status as Upcoming works LAR Issues Status of Work as Location Contract LAR Issues as of Line Description Contractor of 17 as of 17 October reported in 17 of 16 December (rayon/city) number 16 December 2017 October 2017 DDR October 2017 DDR 2017 2017 DDR Absheron rayon, Hayat İnshaat AI/ADB- 79 % • 10 kV XLPE cable None - 84 % progress None 10 kV cable line Khirdalan city LLC 9.1 completed 1x300/35 sq mm -Construction (26.3 km) from • Trench /installation works to 35/10 kV excavation be completed by "Khırdalan" SS • Manhole end of December 6 kV cable line Garadagh Hayat Inshaat AI/ADB- 27 % works • 10 kV XLPE cable None - 84 % progress None (22.1 km) from rayon, Alat 9.1 completed 1x300/35 sq mm -Construction 35/6 kV "Alat settlement • Trench /installation works to Bağları" excavation be completed by • Manhole end of December Goranboy rayon Vest LTD AI/ADB- 68 % • 10 kV poles None - 97 % progress None 10 kV line (201.17 10.1 completed -Construction km) from • AS Conductor /installation works to 110/35/10 kV be completed by "Dalimammadli" SS end of December 6 kV line (18.2 km) Mingachevir VEST Ltd AI/ADB- 92 % • 10 kV poles None - 92 % progress None from 35/6 kV town 10.1 completed • AS Conductor -Construction "Mingachçevir" SS /installation works to be completed by end of December 10 kV line (39.4 Imishli rayon Elektrik AI/ADB- 78 % • 10 kV poles None - 93 % progress None km) from Qurashdirma 11.1 completed • AS Conductor -Construction "Rasullu" SS Muassisasi /installation works to LLCs be completed by end of December Saatli rayon Elektrik AI/ADB- 64 % • 10 kV poles None - 92 % progress None 10 kV line (35.5 Qurashdirma 11.1 completed -Construction km) from • AS Conductor Muassisasi /installation works to "Saatlı" SS LLCs be completed by

end of December Zardab rayon Retro Holding AI/ADB- 67 % • 10 kV poles None - 71 % progress None 10 kV line (126.28 11.1 completed • AS Conductor -Construction km) from "Zardab" /installation works to SS be completed by end of December 10/6 kV line from Ganja city Vest LTD AI/ADB- 60 % works • 10 kV poles None - 78 % progress None 35/6 kV- 12.1 completed • AS Conductor -Construction "Vagzalyanı-1" SS /installation works to (12,04 km), and be completed by from 35/10/6 kV end of December "Yeni Ganja" SS (103,49 km) and from 110/35/10 kV

Shamkir rayon Vest LTD AI/ADB- 70 % works • 10 kV poles None - 87 % progress None 10 kV line (64.17 12.1 completed • AS Conductor -Construction km) from 35/10 kV /installation works to "Shamkir-2" SS be completed by end of December 10 kV line (40.8 Gakh rayon Retro Holdinq AI/ADB- 98 % works • 10 kV poles None - 98 % progress None km) from 35/10 kV 13.1 completed • AS Conductor -Construction "İlisu" SS /installation works to be completed by end of December Shamakhi rayon Retro Holdinq AI/ADB- 98 % works • 10 kV poles None - 98 % progress None 10 kV line (21.3 13.1 completed • AS Conductor -Construction km) from 35/10 /installation works to kV "Shamakhı" SS be completed by end of December 10 kV line (126,3 Oguz rayon Retro Holdinq AI/ADB- 95 % works • 10 kV poles None - 98 % progress One complaint km) from 35/10 kV 13.1 completed • AS Conductor -Construction received by local "Oghuz" SS /installation works toresident of Oghuz be completed by town related with end of December shifting of CTC footprint from private land plot to municipal area which was taken into account by local office Azerishig and Contractor and the footprint shifted to neighbouring area owned by local municipality 10 kV line (60.2 Masalli rayon IMA Energy AI/ADB- 65 % works • 10 kV poles None - 65 % progress None km) from 35/10 kV 14.1 completed • AS Conductor -Construction "Alvadi" SS /installation works to be completed by end of December Lankaran rayon IMA Energy AI/ADB- 64 % works • 10 kV poles None - 81 % progress None 10 kV line (58,35 14.1 completed • AS Conductor -Construction km) from 35/10 kV /installation works to "Sapnakaran" SS be completed by end of December

Work status as Upcoming works LAR Issues Status of Work as Location Contract LAR Issues as of Line Description Contractor of 17 as of 17 October reported in 17 of 16 December (rayon/city) number 16 December 2017 October 2017 DDR October 2017 DDR 2017 2017 DDR 6 kV line (32.2 km) Neftchala rayon IMA Energy AI/ADB- 73 % works • 10 kV poles None - 95 % progress None from 14.1 completed • AS Conductor -Construction 110/35/6 kV /installation works to Neftchala SS be completed by end of December 6 kV line (52,42 Hajiqabul rayon IMA Energy AI/ADB- 85 % works • 10 kV poles None - 92 % progress None km) from 35/6 kV 14.1 completed • AS Conductor -Construction "Pirsaat" SS /installation works to be completed by end of December 6 kV line (201,18 Siyazan rayon Retro Holding AI/ADB- 69% of • 10 kV poles None - 91 % progress None km) from 35/6 kV 15.1 works • AS Conductor -Construction "Siyazan" ss completed /installation works to (Siyazan rayon) be completed by end of December

Appendix 8. Empty logbooks from different Contractors