Environmental and Social Monitoring Report #5th Semi-Annual Report 31 December 2018 Project No. 46390-003, Loan No. 3084 MYA: Power Distribution Improvement Project Prepared by Electricity Supply Enterprise (ESE) through the Ministry of Electricity and Energy (MOEE) of the Union of the Myanmar Republic and the Asian Development Bank. This Environmental and 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 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. 0 | P a g e Ministry of Electricity and Energy Electricity Supply Enterprise (ESE) Power Distribution Improvement Project Loan No: 3084-MYA (SF) Semi-annually Social Monitoring Report July - December 2018 1 | P a g e Contents Contents ............................................................................................................................... 2 Scope ............................................................................................................................... 3 Introduction and Project Characteristics ................................................................................. 3 1.1 Background ............................................................................................................ 3 1.2 Objectives of the Project .......................................................................................... 3 1.4 Project Working Areas ............................................................................................. 4 Update Safeguard Covenant Status ....................................................................................... 8 2.1 Magway Area - ESE ................................................................................................ 8 ESE Status of Compliance .................................................................................................... 11 Conclusions about Safeguards ........................................................................................... 16 2 | P a g e Scope In accordance to the Loan Covenants concerned to the Loan Agreement 3084-MYA, schedule 5, paragraph 26, the present report is prepared to submit a revision of the execution status of the different covenants for the period between July to October 2018, at project end.. Introduction and Project Characteristics 1.1 Background Myanmar's power sector has operated satisfactorily for many decades. However, due to lack normal rehabilitation work in the recent years, the network now suffers from overloading, poor reliability and extremely high losses. The Ministry of Electric Power has entered into a Loan agreement with ADB for the development of a project aiming to the provision of Distribution Goods and Services. This project aims for the rehabilitation of existing run-down power distribution networks in the following four (4) areas: 1. Five townships in Yangon region, namely: Hlaingthaya, Insein, Kamayut, Mayangone, and Mingalone; 2. Four districts in Mandalay region, namely: Kyaukse, Meikhtila, Myingyan, and Yameethin; 3. Five districts in Sagaing region, namely: Kalay, Katha, Monywa, Sagaing, and Shwebo; and 4. Two townships in Magway region, namely: Aunglan and Magway. The scope of rehabilitation works within the project includes, among others, the following: 1. Upgrading existing 66/11 kilovolt (kV) and 33/11 kV substations; 2. Replacing existing 33 kV and 11 kV distribution lines; 3. Replacing existing 11/0.4 kV transformers; 4. Replacing existing bare low voltage distribution lines with more efficient aerial bundled conductor (ABC) distribution; and 5. Replacing existing old revenue meters with digital revenue meters. 1.2 Objectives of the Project 1.2.1 Impact and Outcome The impact will be reduced power distribution loss and improved energy efficiency. The outcome will be improved infrastructure to provide reliable and 3 | P a g e sustainable electricity to the selected townships and districts. 1.2.2 Outputs The project outputs will be (i) rehabilitated distribution network in five townships in Yangon region, (ii) rehabilitated distribution network in four districts in Mandalay region, (iii) rehabilitated distribution network in five districts in Sagaing region, and (iv) rehabilitated distribution network in two townships in Magway region. For each project region, support to capacity building will be provided to enhance staff capability in MOEE, YESC, and ESE on rehabilitation and operation of power distribution system, procurement, and financial management during implementation. The rehabilitation works include (i) upgrading existing 66/11 kV and 33/11 kV substations, (ii) replacing existing 33 kV and 11 kV distribution lines, (iii) replacing existing 11/0.4 kV transformers, (iv) replacing existing bare low voltage distribution lines with more efficient aerial-bundled conductor distribution lines, and (v) replacing existing revenue meters with digital revenue meters. 1.3 Environmental, Involuntary Resettlement and Indigenous People Categorization The project has been in the following four safeguard categories as follows: 1.3.1 Environmental Project is classified as Category B for environment. Expected environmental impacts are site-specific, few if any of them are irreversible, and in most cases mitigation measures can be designed. 1.3.2 Involuntary Resettlement For Involuntary Resettlement project is classified as Category C. Meaning it has no involuntary resettlement impacts and no further action is requested. 1.3.3 Indigenous People For Indigenous People project is classified as Category C. Meaning no impact is expected on indigenous people and consequently no further action is requested. 1.4 Project Working Areas During the period, rehabilitation works were performed in the different townships and districts of the four areas above defined. Performed works are described in the following paragraphs. 4 | P a g e 1.4.1 Magway Area This area includes the townships of Magway and Aunglan. Performed works involved distribution network rehabilitation: installation of new Distribution transformers, poles substitution and cable stringing and rehabilitation works in nine (9) substations. The performed works consisted of: • Civil Works: excavation, concrete works and backfilling for the foundations construction in the above-mentioned substations. • Electromechanical Erection Works: line cable stringing, installation of Distribution Transformers and electromechanical erection works in three substations. The works were performed in the following locations: I. Substation Works: Table No. 1 Works Location Location Substation No Township District 1 66/11 kV, 10 MVA Aunglan Substation Aunglan Tayet 2 33/11kV 10 MVA Pwyi Phyu Substation Pwyi Phyu Minbu 3 33/11kV 10 MVA Lat Mat Kohn Substation Yenanchaung Minbu 4 66/11 KV 10 MVA (GCB) SeikPhyu SeikPhyu Magway 5 66/11 KV 10 MVA (GCB) No (2) Pakokku Pakokku 6 66/11 KV 10 MVA (GCB) Pakhanegyi Pakokku Pakokku 7 33/11 KV 10 MVA (GCB) Minbu Minbu Minbu 8 33/11 KV 10 MVA (GCB) TanaungTaw Minbu Minbu 9 33/11 KV 10 MVA (GCB) Salin Salin Minbu 5 | P a g e II. Network rehabilitation works: Table No. 2 Works Location Location No Executed Works Aunglan Magway Pwint Phyu Township Township 1 Distribution Transformers 200 kVA 77 30 installed (Units) 2 33 kV OHL – ACSR Conductor (km) 7.24 3 11 kV OHL – ACSR Conductor (km) 30.42 13.36 4 11 kV OHL – XLPE (km) 0.4 0.4 5 0.4 kV OHL – ABC (km) 40 65.0 6 0.4kV OHL- Pole Replacement(Nos) 1227 1108 1.4.2 Sagaing Area In this Area, ESE performed the same type of woks as in Magway. The number of substations to be rehabilitated are thirteen (13). The performed works location is as follows: I. Substation Works: Table No. 3 Works Location Location No Substation Township District 33/11 kV, 10 MVA Myae Nae 1 Monywa Monywa Substation. 33/11 KV, 10 MVA Industrial Zone 2 Monywa Monywa Substation. 3 33/11 kV, 10 MVA Sagaing Substation Sagaing Sagaing 4 33/11 kV, 10 MVA Myin Mu Substation Myin Mu Sagaing 5 33/11 kV, 3 MVA Pagantu Substation (Only 33 kV Switch bay) Sadaung Sagaing 6 33/11 kV, 10 MVA Ayartaw Substation Ayartaw Monywa 7 33/11 kV, 10 MVA Chaung U Substation Chaung U Monywa 8 33/11 kV, 10 MVA Taze Substation Taze Shwebo 6 | P a g e Location No Substation Township District 9 33/11 kV, 10 MVA Ye U Substation Ye U Shwebo 10 33/11 kV, 10 MVA Khin Oo Substation Khin Oo Shwebo 11 33/11 kV, 10 MVA Watlet Substation WetLet Shwebo 12 33/11 kV, 10 MVA Khanbalu Substation Khanbalu Khanbalu 13 33/11 kV, 10 MVA Kawlin Substation Kawlin Kathar 14 33/11 kV, 10 MVA Kathar Substation Kathar Kathar 15 33/11 kV, 10 MVA Pinlebu Substation Pinlebu Kathar II. Network rehabilitation works: Table No. 4 Works Location Type of Work Distribution 33 kV OHL – 0.4 kV OHL – 0.4 kV OHL – 11kV OHL- 0.4kV OHL- Township Transformers ACSR HDBC ABC Pole Pole No 200 kVA Conductor (km) (km) Replacement Replacement installed (km) (Nos) (Nos) (Units) 1 Monywa 8 8.69 33.14 87 2020 2 Sagaing 4 24.00 47 1180 3 Ayartaw 4 4 Shwebo 10 27.5 99 1280 5 Kathar 4 6 Kawlin 26.4 13.2 7 Inndaw 35.42 8 Kalay 3 3 16 560 7 | P a g e Update Safeguard Covenant Status Project Safeguards are defined in the Project Administration Manual (PAM) and in the Initial Environmental Examination (IEE) report that