46390-003: Power Distribution Improvement Project

Home , Aunglan Township, Kalay, Kawlin, Kyaukse, Magway Township, Mandalay Region

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.

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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 form part of the Loan agreement.

Annexures 1 reflects these covenants status for each one of the townships affected by the project. The following paragraphs present short analysis of them. 2.1 Magway Area - ESE

This area has not archeologist interest sites that could be affected by the works components performed in it.

From information provided by the DE, following conclusions and facts can be mentioned: a) Project Disclosure was done before the starting of the project to the relevant regional authorities. Disclosure was also done through communication means as newspapers, for example. b) There was not any provision in the substation design for oil spillages and leaks for the first substations concluded before June 2017. PIC Civil Expert instructed about that. ESE implemented the recommendations in the new substations rehabilitated in Magway during the second half of 2017. For the rest of substations, the ones to be rehabilitated in 2018, the solution is implemented. c) Transformers reparations are done by specialized companies in their own facilities, consequently risk of spillage does not exist in the workshops. In the storehouses the risk is present, but is low. d) Decommissioned network material (poles and cables) is being stored in areas close or part of the divisional storehouses (township offices and Divisional Engineering Areas). Distribution and Substation transformers will be reutilized in other ESE projects in different regions of the country. Steel poles as well, but wooden poles will be abandoned. Concerning dismantled cables and conductors the decision is to auction them. Now, ESE is preparing for submitting to MOEE to take permission for auction. This procedure takes longtime and will be finished during 2019. e) The distribution transformers purchased through ADB loan were used to increase the distribution capacity of the networks and to improve the quality service in Magway Township, whereas in Aunglan Township will replace existing ones. All them are PCB free. The decommissioned transformers in Aunglan are still in operational condition and will be reutilized in other regions attended by ESE. f) All site works sites were cleaned once the works were finished, therefore not affections to vegetation is produced. g) Impact in traffic is minimized and controlled according to the rules of the city and with the conformity of the authorities. Signals were properly placed to

8 | P a g e orientate pedestrians and drivers during the periods in which restrictions were applied. h) No preventive measures were applied to avoid dust or water pollution due to the presence of soil piles during excavation works. i) ESE have been provided sets of safety suits including hard hats and safety gloves in all Township electrical engineering office during the last year of the rehabilitation period. Concerning the Subcontractors, it was requested they provide their personnel with these elements. j) Vegetation control works (tree trimmings) were announced through the social networks (FB) and by announcing using loudspeaker in public areas, involving or not power cuts, for the works in which was necessary. Pesticides to control the vegetation grown are not used. For the substation rehabilitation works execution, there was no need to trim trees. In conclusion, main areas to improve in this region are those concerned mostly with the safety but environmental matters.

ESE Magway Area informed the no occurrence of any accident or incident during the works execution. No report about any grievance from any stakeholder was received.

9 | P a g e 2.2 Sagaing Area - ESE

In this area there is not any archeological interest site that could be affected by the works components performed on the sites.

In Sagaing area similar conclusions to Magway can be extracted

a) Project Disclosure was done before the starting of the project to the relevant regional authorities. Disclosure was also done through communication means as newspapers, for example. b) There was not any provision in the substation design for oil spillages and leaks for the first substations concluded before June 2017. PIC Civil Expert instructed about that. ESE have been made design for transformer foundation including oil spillages to implement additional 13 numbers of substation. The solution is implemented. c) Transformers reparations are done by specialized companies in their own facilities, consequently risk of spillage does not exist in the workshops, but in the storehouses a little risk exist. d) All site works were cleaned once the works are finished, therefore not affections to vegetation was produced. e) Impact in traffic was minimized and controlled according to the rules of the city and with the conformity of the authorities. Signals are properly placed to orientate pedestrians and drivers during the periods in which restrictions are applied. f) No preventive measures were applied to avoid dust or water pollution due to the presence of soil piles during excavation works. g) ESE informed they provided sets of safety suits including hard hats and safety globes in all Township electrical engineering office from the end of August,2017. h) Vegetation control works (tree trimmings) are announced through the social networks (FB) and by announcing using loudspeaker in public area involving or not power cuts. Pesticides to control the vegetation grown are not used.

In conclusion, main areas to improve in this area are those concerned mostly with the safety but environmental as well.

ESE Sagaing Area did not report any accident or incident during the execution of rehabilitation works and any grievance from any stakeholder.

10 | P a g e ESE Status of Compliance

At 31-12-2018 (end of the project) the compliance status of the different covenants by ESE is indicated in the following paragraphs.

3.1 Safeguards Loan/Grant Covenants

Loan Covenant Covenant Status of Compliance Reference Schedule 5 Conformance with the laws of Myanmarand Despite of our lack of Paragraph ADB’s Safeguard Policy Statement experience in ADB 22. financed projects, ESE did their best with the support of PIC and ADB. For future projects, ESE request additional trainings in ADB’s Safeguard Policy Statement. Compliance with Myanmar’s Partially done at the Environment, Health and Safety beginning of the Schedule 5 – Laws. Paragraph project and complete 23 compliance during the last year of implementation of rehabilitation works Implementation of all measures and This is an area with wide requirements set forth in the Initial margin to improve. The lack Environmental Examination (IEE) of budget did not allow to and the Environmental Management Plan hire any specialist in this (EMP) area to implement these measures. Schedule 5 – Budget availability and human resources Not solved. ESE managed Paragraph to fully implement the EMP to designate environmental 25 and Social staff not only for ADB but also other organizations as well as World Band, JICA and KfW projects, but still not done.

11 | P a g e 3.2 Environmental Management Plan

Status at 31-12- Item Action 2018 Hiring of Environmental Still not done. ESE managed to designate Officers environmental and Social staff not only for ADB but also other organizations as well as World Band, JICA and KfW projects, but still not done. But ESE already designate each Environmental Officer (one Engineer from regional office) for respective project area of Area 3 and Area 4 in November 2018 for ADB Loan 3084 MYA(SF) Project Hiring of Environmental No environmental No done, due to budget Consultants consultants hired due to constraints. Budgetary Constraints. Capacity Development Program Some capacity The only training received by ESE focused on community safety, development completed. in this matter was provided by environmental impact ADB (1 day - Safeguard assessment (EIA), EMP Monitoring workshop for YESC implementation, inspection and and ESE performed on 7th corrective action, environmental November 2017). standard operating procedures, proper handling and disposal of wastes, protection of local vegetation and water resources, and avoiding impacts on local population from noise and dust generating activities during the construction phase. Material Recovery Plan New update in preparation Update will be released at the end of the year. Grievance Redress Mechanism ESE has protocol they follow for these cases. ESE will consider to establish Specific Project one mechanism for the future grievance redress was projects. not established. Project Disclosure Project Disclosure was done before the starting of the project to the relevant regional authorities and to the public through communication means and social networks (Facebook).

12 | P a g e Status at 31-12- Item Action 2018 Personal Protective ESE already have been Equipment (PPE) provided PPE to every townships for Sagaing and Magway Regions for all their staff from the end of 2017.

13 | P a g e 3.3 Environmental Management (Rehabilitation/installation and operation)

Item Status at 31-12-2018 Comments /Action required Rehabilitation / Installation Phase Project Disclosure – As indicated before the ESE will continue using the same issuances of advisories Project Disclosure was procedure used until now. and notices to the public. done to the relevant authorities of each Affected Areas ROW region at the beginning. Before the execution of any rehabilitation work, the potentially affected community is informed through social media, assuring them that all the possible measures to minimize the impact will be taken. Provision of transformer A Training was provided Partially implemented. ESE made containment system (oil by PIC regarding part of their standard to include the grease pit) solutions to implement in Oil Pit in the transformer foundation Sites of Substation and new substations during design. For future projects of Distribution Transformers December 16 and substations will be implemented. January 17. Solution was implemented in the substations linked to package 6. In two early substations in Magway, the solution was applied as well. Provision of materials Decommissioned Decommissioned material will be recovery/temporary materials are temporary auctioned in accordance to the materials storage areas. stored in areas of normal practice of MOEE. This divisional storehouses or includes: poles, cables, conductors Substation sites and township storehouses. and hardware and Distribution and central materials storage substation Transformers as well. area of ESE. Decommissioned distribution transformer will be utilized in another place during 2019 and iron poles will be utilized in Chin State in 2019 and 2020.Conductors will be auctioned and ESE is now preparing to submit MOEE to take permission for auction during 2019. Clean-up of sites Site is cleaned upon conclusion of Affected Areas Implemented rehabilitation works, as normal practice. Item Status at 31-12-2018 Comments /Action required Air Quality Implementation Teams For the new works execution ESE Along ROW will be instructed by ESE through the concerned Divisional to cover with traps or Engineers (DE) will instruct the plastic sheeting on Implementation Teams in the stockpiles of soil. application of these measures. Soil Erosion No implemented No applicable to this project. measures. Pole foundation Sites The lines routes of the project are not crossing areas in which this risk exist. Damages or nuisance to No implemented Nuisances were minimized as nearby areas measures. Jobs are much as possible and announced finished. to the affected community. For Along ROW and at missing tasks, to be performed in substation sites. 2019 (commissioning) no nuisance is expected. Health and Safety Measures partially Measures application were done implemented: Danger during the works execution. Along ROW, construction signs and fences where camps is possible are being installed in locations of distribution transformers. Safety trainings were provided by PIC Dust Implementation Teams Local road and village were instructed by ESE nearby where trucks to cover with traps or pass through and plastic sheeting on construction sites. stockpiles of soil. Noise Not special implemented Local road and village measures: ESE has nearby where trucks instructed their staff and pass through and Contractors to perform construction sites. transportation using long trucks at the minimum traffic times, wherever and whenever is possible. Operation Phase Oil Spill during oil draining at maintenance No implemented ESE usually does not perform this yard space measures operation.

Substation Sites

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Item Status at 31-12-2018 Comments /Action required Trees and Vegetation Control Implemented This control is done through the execution of trimming works by Along the ROW trained personnel. No pesticides are used. Health and Safety: Measures partially Recommendations and practices Injury to Workers implemented. explaining during the training were and villagers PIC had already partially applied at the beginning of the provided training in implementation period. Nevertheless, Electric Poles occupational Health ESE shows progress in this area. The and safety in all Personal Protection Equipment is regions for staffs provided to the whole staff. appointed by ESE. There is not any reported accident or incident.

Conclusions about Safeguards

From above paragraphs, it can be concluded this PMU worked to meet with the safeguard covenants in areas in which is necessary to improve.

Areas in which ESE works for improvement are:

a. Concerning the spillage of transformers oil drainage operations, as previously said, these operations usually are done by specialized companies and mostly in their own facilities. The risk can be considered minimum, but still existing. Measures will be implemented where applies in company´s storehouses. Concerning the suppliers and service companies’ facilities, located in Myanmar, ESE will start to request this requisite to their representatives.

b. Environmental protection measures during works execution, against air and water pollution will be defined and implemented. To every Contractor appointed to perform works for ESE involving goods provided through ADB loans, will be requested the submission of an Environmental Management Plan to be followed by them during the execution of these woks. Safety Plan will be also requested.

c. The respective township engineers are responsible for the Environmental and Social Safeguards matters. More dedicated and skilled staff is needed.

d. Budgetary constraints did not allow the hiring of the

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Environmental Consultant to get knowledge transference to ESE concerned staff. ESE kindly request Trainings in this area to the staff that the company will appoint for taking care of these tasks.

e. Traffic restrictions during the works and associated safety measures during works execution are applied but now in revision for more improvement.

f. According to the material recovery plan of ESE, in Sagaing Region & Magway Township it was not done any transformer substitution. New distribution transformers were used to increase the distribution capacity and extension of networks. In Aunglan Township 22 numbers of old Transformers are recyclable units and will be in another location of the grid. The decommissioned iron poles will be reutilized for low voltages line projects in Chin State in year 2019 & 2020.For decommissioned HDBC & ACSR conductor ESE could not finish the preparation for auction and perform it during 2018. The process will be performed in 2019.

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The Republic of the Union of Myanmar Ministry of Electricity and Energy Electricity Supply Enterprise (ESE)

Power Distribution Improvement Project ADB Loan No: 3084-MYA

Material Recovering Plan July – December 2018

Region : Sagaing (Area3)

: Magway (Area4)

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Contents

Material Types and Disposal ...... 20 1.2 Material Types ...... 20 1.3 Material Disposal ...... 20

Material recovery Plan ...... 20 A. Magway Area ...... 20 1.1 Substations and Distribution Transformers ...... 20 1.2 Conductors ...... 23 1.3 Iron & Wooden Poles ...... 25 B. Sagaing Area ...... 26 1.1 Substation and Distribution Transformers ...... 27 1.2 Conductors ...... 32 1.3 Iron & Wooden Poles ...... 1 1.4 Conclusion ...... 3

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Material Types and Disposal

1.2 Material Types

The rehabilitation works caused the decommissioning of several networks and substation components, mentioned as follows:

• Distribution Transformers. • Conductors. • Iron Poles. • Wooden Poles. • Substation Transformers The project goal is the substitution of the old elements of the system by new ones to provide a more reliable and better-quality service to the concerned community. In some cases the new elements did not replace any other, they just reinforced the system.

1.3 Material Disposal

The usual practice in Myanmar for decommissioned material considers three alternatives for they disposal:

• Reutilization, when is possible. • Auction: sell to third parties as scrap. • Abandon.

For decommissioned material in this project only the first two options are considered. In most of the cases the reutilization option is the suitable option.

Material recovery Plan

At 31-12-2018 the compliance status of the different covenants by ESE is indicated in the following paragraphs.

A. Magway Area

1.1 Substations and Distribution Transformers

In Magway Area, the new distribution transformers installed in Magway township did not substitute any of the existing units because they were used to increase the distribution capacity (6,000 kVA extra). The units installed in Aunglan replaced several old ones that are being recycled: they are now being installed in other sectors of the distribution network. There are also several substations transformers which transformers were replaced to increase the capacity. The existing units will be relocated in another ESE attended zones. The following table shown more details regarding the planned disposal for these items.

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Area: Magway Type of Material: Transformers

in another sector of the grid.

Aunglan During year 2019, all them 1 Tayet 22 22 5355 Aunglan - - - 22 - - will be again in operation. 66/6.6kV, 5MVA transformer will be used in 2 Tayet Aunglan another location. During year 1 1 5000 Aunglan - - - 1 - - 2019, it will be again in operation. Yenan Yenan 3 Minbu Chaung 1 1 5000 chaung - - - 1 - - 33/11kV, 5MVA old two transformers will be used in another locations of ESE’s Pwint Phyu Pwint Phyu 4 Minbu 1 1 5000 - - - 1 - - substation during year 2019.

66/11kV, 5MVA transformer will be used in

5 Magway Seikphyu SeikPhyu 1 another location. During year 1 1 5000 2019, it will be again in operation 66/11kV, 5MVA No. 2 transformer will be used in

6 Pakokku Pakokku and 2 another location. During year 2 2 5000 Pakhanegyi 2019, it will be again in operation

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Unit (Nos.) Replaced Units Action to Take Towns hip to be Recyclable Units (No) Not Recyclable Units (No) Reutilizati Item District replaced on Auct-ion Abandon Estimated Date end Quantit KVA Location QuantitKVA Locatio y (No). y n 33/11kV, 5MVA old two Minbu transformers will be used in 7 Minbu Minbu 2 2 5000 And 2 another locations of ESE’s Tanaung Taw substation during year 2019. 33/11kV, 5MVA old two transformers will be used in 8 Minbu Salin 1 1 5000 Salin 1 another locations of ESE’s substation during year 2019. Total 31 31 5000 - - - 31 - -

The disposal date for the substations transformers is tentative. It depends of the development of the future rehabilitation networks to be performed by ESE.

Related photos of Old Transformers

Decommissioned distribution transformer of Aunglan Township Projects

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1.2 Conductors

In Magway Area, all conductor replacing works are finished. The decommissioned HDBC (Hard Drawn Bare Copper Wire) & ACSR Conductor of Magway Township & Aunglan Township Projects will be auctioned during year 2019. ESE in process of getting MOEE’s permission for auction.

Area: Magway Type of Material: Conductors

Replaced Units Action to Take Unit Recyclable Units (kg) Not Recyclable Units (kg) District Towns (km) to Reutiliz Auction Aban Item hip be Quantity ation don Estimated Date replace (No). Volume Location Quantity Volume e Location d on HDBC No.4+6+8 & HDBC ESE is now preparing for 1699 25mm2Stranded Magway 405 No.10 Magway - 1699 submitting to take MOEE’s 1 Mag Magwa 65 (kg) (kg) permission for auction. way y (Estimated Date is 5203 ACSR Magway 3000 ACSR Magway - 5203 - during 2019) 25mm2 35mm2 HDBC No.4+6+8 ESE is now preparing for 5020 (kg) Aunglan - - - - 5020 - submitting to take MOEE’s permission for auction. 2 Thayet Aungla 59.89 ACSR 25+35+70 (Estimated Date is n 2100 mm2 Aunglan - - - - 2100 - during 2019)

HDBC No.4+6+8 HDBC &25mm2 No.10 Stranded ACSR Total 124.89 14022 25+35+70 3405 ACSR 35 - 14022 - mm2 mm2 (kg) (kg)

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Related photos of Old Conductors Pictures of storage for recyclable conductors of Magway Township Projects

Pictures of storage for recyclable conductors of Aunglan Township Projects

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1.3 Iron & Wooden Poles

In Magway Area, all of the pole replacing works were done. The decommissioned iron poles will be reutilized for future low voltage line projects in Chin State because concrete poles are difficult to transport. Decommissioned wooden poles will be auctioned during 2019.

Area: Magway Type of Material: Poles

Unit Replaced Units Action to Take Towns (Nos.) Recyclable Units (No) Not Recyclable Units (No) Item District hip to be Reutilizati Auction Abandon Estimated Date replace QuantitVolume Location Quantity Volume Location on d y (No). 9M The 1 Magway Magway 1108 167 9M Magway 941 Timber Magway 167 - - decommissioned iron Iron Pole y Pole poles will be reutilized 9M during Year 2019 & 2 Tayet Aunglan 1052 106 9M,10M Aunglan 946 Timber Aunglan 106 - - 2020 low voltage line Iron Pole Pole projects in Chin State. 9M,10 M, 9M,10M, 12M Total 2160 273 12M 1887 Iron 273 - - Iron Pole Pole

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Related photos of Old Iron Poles: Decommissioned iron poles of Magway Projects Decommissioned wooden poles of Magway Projects

Decommissioned wooden poles of Aunglan Projects

B. Sagaing Area 26 | P a g e

1.1 Substation and Distribution Transformers

No existing distribution transformers were dismantled. New distribution transformers installed (33units) were destined to increase the capacity of the network, to improve the reliability and quality service.

The replaced substation transformers will be reutilized and are stored in their corresponding substation, as shown in the following table:

Replaced Units Action to Take Recyclable Units (No) Not Recyclable Units (No) Unit (Nos.) to Item District Township be Quantity replaced KVA Location Quantity KVA Location Reutilization Auction Abandon Estimated Date (No).

33/11kV, 5MVA transformer will be used in another location. 1 Sagaing Myinmu 1 1 5000 Myinmu 1 During year 2019, it will be again in operation. 2 33/11kV, 5MVA transformer will be used in another location. Monywa Ayar Taw 1 1 5000 Ayar Taw 1 During year 2019, it will be again in operation.

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33/11kV, 5MVA transformer will be used in Shwe another location. 3 Kanbulu 1 1 5000 Kanbulu 1 Bo During year 2019, it will be again in operation. 33/11kV, 5MVA transformer will be used in Shwe another location. 4 Khin Oo 1 1 5000 Khin Oo 1 Bo During year 2019, it will be again in operation. 33/11kV, 5MVA transformer will be used in Shwe another location. 5 Wetlet 1 1 5000 welet 1 Bo During year 2019, it will be again in operation. 33/11kV, 5MVA transformer will Shwe 6 Taze 1 1 5000 Taze 1 be used in Bo another location. During year 28 | P a g e

2019, it will be again in operation.

Capacity 7 Sagaing Min Kun Nil Nil Increase

33/11kV, 5MVA transformer will be used in Shaw another location. 8 Ye oo 1 1 5000 Ye Oo 1 Bo During year 2019, it will be again in operation.

Chaung Capacity 9 Monywa Nil Nil Oo Increase

33/11kV, 5MVA transformer will be used in 10 Kathar Kathar 1 1 5000 Kathar 1 another location. During year 2019, it will be 29 | P a g e

again in operation.

Capacity 11 Kathar Kawlin Nill Nill Increase

33/11kV, 5MVA transformer will be used in another location. 12 Kathar Pinlebu 1 1 5000 Pinlebu 1 During year 2019, it will be again in operation. 33/11kV, 3MVA transformer will be used in Sataung Shwe Sataung another location. 13 1 1 3000 (Patgant 1 Bo (Pagantu) During year u) 2019, it will be again in operation. Capacity 14 Monywa Maenae Nill Nill Increase

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The old transformer are Industrial 1000 Industrial 15 Monywa 1 1 1 still in operation Zone 0 Zone in the same substation. 33/11kV, 5MVA transformer will be used in Shwe another location. 16 Thuzar 1 1 5000 Thuzar 1 Bo During year 2019, it will be again in operation.

6300 Total 12 12 12 0

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1.2 Conductors

In Sagaing Area, all of the conductor replacing works were done. The decommissioned HDBC (Hard Drawn Bare Copper Wire) & ACSR Conductor will be auctioned during 2019. ESE in process of getting the necessary MOEE’s permission for performing the auction.

Area: Sagaing Type of Materials: Conductors

Unit Replaced Units Action to Take

(km) to Recyclable Units (kg) Not Recyclable Units (kg) Towns Reutiliza be Estimated Date Item District hip p Quantity Volume Location Quantit Volume Location tion Auction Abandon replaced (No). y HDBC 14490.5 No.4+6+8 Monywa - - - - 14490.5 - ESE is now preparing Monyw (kg) for submitting to take 1 a Monyw 41.83 ACSR MOEE’s a 6775.5 25+35+50 Monywa - - - - 6775.5 - permission for auction. mm2 (Estimate d Date is Sagain ACSR 9M Sagaing during 2019) 2 g Sagain 1227 8100 25+35+50 Sagaing 6873 Timber Pole - 8100 - g mm2 HDBC HDBC 3676 No.6+8+10 Shwe Bo 1170 No.8+10 Shwe Bo - 3676 - (kg) (kg) 3 Shwe Shwe 27.4 ACSR ACSR Bo Bo 3871 25+35+50+ Shwe Bo 2100 25+35 Shwe Bo - 3871 - 70 mm2 mm2 ACSR ACSR 4 Katha r Kawlin 39.6 27408 25+35+70 Kawlin 283 25+35 Kawlin - 27408 - mm2 mm2 HDBC 311 No.6+8+10 Kalay - - Kalay - 311 - (kg)

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Unit Replaced Units Action to Take

(km) to Recyclable Units (kg) Not Recyclable Units (kg) Towns Reutiliza be Estimated Date Item District hip p Quantity Volume Location Quantit Volume Location tion Auction Abandon replaced (No). y 5 Kalay Kalay 3 ACSR ACSR 35 1183 35+70 Kalay 84 mm2 Kalay - 1183 - mm2 HDBC No.4+6+8+ HDBC 1338. 10 No.8+10 Total 9 65815 (kg) ACSR 10510 (kg) ACSR - 65815 - 25+35+50+ 25+35 70mm2 mm2

Related photos of Old Conductors

Pictures of storage for recyclable conductors of Kawlin Township Projects

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1.3 Iron & Wooden Poles In Sagaing Area, all of the pole replacing works were done. The decommissioned iron poles will be reutilized for future low voltage line projects in Chin State because concrete poles are difficult to transport. Decommissioned wooden poles will be abandoned. Quantities and storage location for these elements are shown in the following table.

Area: Sagaing Type of Materials: Poles

Unit Replaced Units Action to Take Town (Nos.) Recyclable Units Not Recyclable Ite Distri s hip to be (No) Units (No) Reutilizat Aucti Aband Estimated m ct replac ion on on Date ed Quanti Volu Locati Quanti Volu Locati ty me on ty me on (No).

9M,10 9M,10 1 Mony Mony 2352 207 M Monyw 2145 M Monyw 207 - 2145 The wa wa , a , a decommissio Iron Timbe ned iron Pole r Pole poles will be 9M reutilized for 2 Sagai Sagai 1227 10 9M Sagain 1217 Timbe Sagain 10 - 1217 Year 2019 & ng ng Iron g r Pole g 2020 low Pole voltage line projects in Shwe 9M,10 9M Shwe Chin State. 3 Shwe Bo 1379 239 M Shwe 1140 Timbe Bo 239 - 1140 Bo , Bo r Pole Iron Pole

12M 4 Katha Innda 1170 9 12M, Inndaw 1161 Timbe Inndaw 9 - 1161 r w Iron r Pole Pole 9M,10 9M,10 5 Kalay Kalay 576 25 M Kalay 551 M Kalay 25 - 551 , , Iron Timbe Pole r Pole 9M,10 9M,10 M M , , Total 6704 490 12M 6214 12M 490 - 6214 Iron Iron Pole Pole

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Photographical Report Pictures of storage for recyclable iron poles of Monywa and Shwebo Township Projects

Pictures of storage for not recyclable timber poles of Monywa Township Projects

Pictures of storage for not recyclable timber poles of Sagaing Township Projects

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Pictures of storage for not recyclable timber poles of Kawlin Township Projects

1.4 Conclusion

The project rehabilitation did not generate transformers units to be auctioned. All the decommissioned units are in process of be reinstalled in another sector of the network. For iron poles the decision is also the reutilization in Chin State network.

Regarding the decommissioned substation transformers, they will continue in commercial operation in the current location of new ones.

The remaining components as cables, conductors and wooden poles cannot be reutilized and will be auctioned (cables and conductors) and abandoned (wooden poles).

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The Republic of the Union of Myanmar Ministry of Electricity and Energy Mandalay Electricity Supply Corporation (MESC)

Power Distribution Improvement Project Loan No: 3084-MYA (SF) Semi-annually Environmental and Social Monitoring Report July - December 2018

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Contents

Scope ...... 6

1.1 Background ...... 6

1.2 Objectives of the Project ...... 6

1.3 Environmental, Involuntary Resettlement and Indigenous People Categorization ...... 7

1.4 Project Working Areas ...... 7

1.5 Safeguards Loan/Grant Covenants ...... 9

1.6 Environmental Management Planning ...... 9

1.7 . Environmental Management (Rehabilitation/installation and operation) ...... 12 Environmental Management Plan Report Region: Mandalay ...... 16

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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 second half of 2018, at project end.

Introduction and Project Characteristics

1. Five townships in Yangon region, namely: Hlaingthaya, Insein, Kamayut, Mayangone, and Mingaladone;

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 sustainable electricity to the selected townships and districts. 6 | P a g e

1.2.2 Outputs The project outputs will be (i) rehabilitated distribution network in various 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 MOEP, YESB, 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 safeguard categories: 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 MESC accomplished all the scope of rehabilitation works of the project in earlier period (2017). No additional works were performed after that. The Region performed the works in several townships of Mandalay, that consisted in distribution network rehabilitation works: installation of new Distribution transformers, poles substitution, cable stringing and rehabilitation of eleven (11) substations.

Updates on Safeguard Covenant Status

Project Safeguards are defined in the Project Administration Manual (PAM) and in the Initial Environmental Examination (IEE) report that form part of the Loan agreement. From information provided by the Chief Engineer of MESC, following conclusions and facts can be mentioned: a) Project Disclosure was done before the starting of the project to the relevant regional authorities. Communication with the public includes announcements with loud speakers on the streets of the concerned townships, announcement from radio stations, announcement by writing to the regional government officers from township engineers, and announcements from newspapers. b) There is no provision in the concluded substations for oil spillages and leaks. PIC provided a dedicated training and the measures will be included at design phase in future projects. c) Repair of transformers is done by specialized companies in their own facilities. For ADB project, all the distribution transformers under ADB loan are new and there was no 7 | P a g e

distribution transformers replacement. In the case of any oil spillage, MESC will contact the specialized company to perform the necessary reparations on urgent basis. This is the current practice of MESC for Distribution and Substation Transformers. Consequently, the risk of having these spillages in MESC premises is low. d) All transformers purchased by MESC are PCB-free. e) Decommissioned materials (poles and cables) are stored in township areas. Cables will be used in other suitable and needy places as and when necessary. Dismantle poles are not recyclable and will undergo bidding process as scrapped wood. f) All site works were cleaned when the works were finished. g) The project did not affect any archeologist interest site. h) Regarding Personal Protective Equipments (PPEs), MESC has plans to purchase necessary equipments for all their workers by 2019. Currently just 30% of the workers have been provided with PPEs. During the works execution, the hired contractors provided their staff with these elements: helmets, safety shoes, gloves and safety harness for working at heights. Nonetheless, the MESC Management considers the use of PPEs crucial and has plans to fully equip the staffs with PPEs as and when necessary. i) During the works execution, the PMU and their Subcontractors implemented the necessary measures to minimize the impact in traffic and controlled it according to the rules of the city and with the conformity and cooperation of the concerned authorities. Signboards were properly placed to orientate pedestrians and drivers during the period of transportation of materials and execution works. j) There is no rehabilitation works performed in Mandalay Region during this period (July – December 2018). Previously, no preventive measures are applied to avoid dust or water pollution due to the presence of soil piles during excavation works. The usual practice of MESC includes informing the public about excavation works and educating them that the amount of dust and soil released are hazardous and instructing the public to avoid site areas while doing excavation works. k) Regarding Occupational and Community Health and Safety, MESC has usual procedures of emergency response by calling up first-aiders and non-government organizations (NGOs) in the case of any emergency situation. For ADB project, the townships included have hospitals, vehicles for emergency purposes in respective hospitals, first-aiders and the assistance from fire services departments. Nevertheless, during the works there was not any accident report. In addition to that, MESC always conducted orientations to public about electrical safety and how to respond in the case of emergency situations to public quarterly or more frequently at all the townships in Mandalay Region. The places of orientation include universities to educate students, community centers to educate public and government institutions to educate civil servants and officers. l) Vegetation control works (tree trimmings) were announced through the newspapers, social networks and radio stations and the announcements include necessary information about the duration of power cuts if necessary to do so. Pesticides to control the vegetation grown were and are not used. As MESC is still a very young entity (had just established less than 2 years ago), there are still a lot of rooms for improvement. However, MESC will strive to achieve what is necessary for environmental safeguards compliance. 8 | P a g e

MESC Status of Compliance

At 31-12-2018 the compliance status of the different covenants by MESC is indicated in the following paragraphs.

1.5 Safeguards Loan/Grant Covenants

Loan Covenant Covenant Status of Compliance Reference Schedule 5 – Conformance with the laws of Despite of our lack of experience in ADB Paragraph 22 Myanmar financed projects, MESC did their best with the and ADB’s Safeguard Policy support of PIC and ADB. We kindly request Statement additional trainings in ADB’s Safeguard Policy Statement for future projects. Schedule 5 – Compliance with Myanmar’s Partial Compliance: Just 30% of the workers Paragraph 23 Environment, provided with PPEs. For next FY budget will Health and Safety Laws. include resources to provide PPEs for all workers. Implementation of all measures This is an area with wide margin to improve. and requirements set forth in The lack of budget did not allow to hire any the Initial Environmental specialist in this area to implement these Examination (IEE) and the measures. Environmental Management Plan (EMP) Schedule 5 – Preparation and Refer to material recover Paragraph 24 Implementation of Plan. Last update is submitted as separated Material Recovery Plan document. Schedule 5 – Budget availability and human No Solved. Paragraph 25 resources to fully implement the EMP Schedule 5 – Submission and disclosure of For future projects Safeguard Monitoring reports Paragraph 26 semi- annually Safeguard will be done on monthly basis by the DE, (until Monitoring Reports Environmental officers are appointed) and submitted on semi-annual basis.

1.6 Environmental Management Planning

Status at 31 Item December Action 2018 Environmental Officers No available. MESC shall appoint the necessary Environmental Officers to assist the DE in these matters and prepare the corresponding reports.

Hiring of No MESC shall hire Consultants to provide assistance in Environmental environmental this area and training to the Environmental Officers Consultants consultants and supervise the implementation of EMP for future hired due to projects. Budgetary Constraints.

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Capacity Development Program focused on No prepared Due to the usual budget constraints, a trained community safety, and no program funded by ADB is suggested, to enable the environmental impact implemented. PIUs and PMUs to take care of this covenants assessment (EIA), compliance. EMP implementation, ADB provided inspection and training on corrective action, safeguard environmental Monitoring on standard operating 7th November procedures, proper 2017. handling and disposal of wastes, protection of local vegetation and water resources, and avoiding impacts on local population from noise and dust generating activities during the construction phase. Material Recovery Plan Updated Refer to updated material recover plan. Grievances Redress MESC has a The management of MESC informs regional government Mechanism protocol, but a officers from concerned townships where ADB project project specific works took place prior to material transportation and grievance execution works started. Regarding transformer redress was upgrading capacity and construction of switch bays, not execution works are performed at specific substation established. areas. In the case of distribution transformers, the exact locations where the distribution transformers will be located are pre-defined before implementation of the project. Replacement of ABC cables and concrete poles were done after informing the local authorities of different townships to make the public aware of material transportation and execution works. In short, awareness to public was made prior to implementation works. Up to date, MESC has not received any complain or grievance from the community occurred in this project. In the case of occurrence of any grievance, the protocol establishes that the respective township engineer will inform the district engineer and the district engineer will report the grievance to the Chief Engineer of respective department in MESC. The chief engineer will discuss with Chief Executive Officer (CEO) and the Chairman of MESC in Executive Committee (EC) meeting to handle the issue.

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Project Disclosure Occurred as advisories and notices issued to the public in some instances. Disclosure was done before ADB project starts when Mandalay Divisional Office was still in place. At that time, the Divisional Engineer released the information to relevant regional authorities of different townships in Mandalay Region. Communication with the public includes announcements with loud speakers on the streets of the concerned townships, announcement from radio stations, announcement by writing to the regional government officers from township engineers, and announcements from Newspapers. Personal Protective Equipment Partially complied. Just Despite there is nor any Job in (PPE) 30% of the workers were progress within the scope of works provided by these of the ADB Project, MESC shall elements. Contractors were work in getting improvement in instructed to comply with this matter. their workers. MESC Management informed the last ADB mission the provision in next FY budget of resources to provide PPEs to all workers.

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1.7 Environmental Management (Rehabilitation/ installation and operation)

Item Status at 31 Comments /Action required December 2018 Rehabilitation / Installation Phase Project Disclosure – Disclosure was done before ADB project issuances of advisories and starts when Mandalay Divisional Office was notices to the public. Implemented. still in place. At that time, the Divisional Engineer released the information to relevant Affected Areas ROW regional authorities of different townships in Mandalay Region. Communication with the public includes announcements with loud speakers on the streets of the concerned townships, announcement from radio stations, announcement by writing to the regional government officers from township engineers, and announcements from Newspapers. Provision of transformer Not implemented. The measures will be applied in future projects. containment system (oil Training received grease pit) from PIC regarding solutions to Sites of Substation and implement in new Distribution Transformers substations during December 16 and January 17. Provision of materials Decommissioned Conductors will be used in other suitable and recovery/ temporary materials are needy places (rural areas) as and when materials storage areas. temporary stored in necessary. Dismantle poles are not recyclable township and will undergo bidding process as scrapped Substation sites and central storehouses. wood (as indicated in the MRP). materials storage area of MESC Clean-up of sites Implemented All sited were cleaned when works were concluded. Affected Areas Air Quality The current practice Measures to prevent air pollution from soil of MESC includes piles during excavation works will be defined Along ROW informing the public and implemented for future projects. about excavation works and educating them that the amount of dust and soil released are hazardous and instructing the public to avoid site areas while doing excavation works.

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Item Status at 31 Comments /Action required December 2018 Soil Erosion No implemented. The Actions will be taken for future projects project did not cross according to the expected risk. Pole foundation Sites areas in which risk was present. Damages or nuisance to Implemented as Current practice of MESC includes carrying out nearby areas normal MESC execution works during daytime when most practice. people are working and not present at home. In Along ROW and at the case of presence of the elderly and children, substation sites. the relevant township engineers and contractors shall inform the public to avoid the vicinity of execution area as much as possible. In addition, barriers must be implemented in those substations in which this risk exists. Improper disposal of solid No implemented: MESC’s current practice includes proper waste There is not disposal of solid waste materials by township worker´s camps in engineers as and when necessary. Worker´s Camp Sites the project. Health and Safety Implemented in Danger signs and fences were installed at Paleik, Sinkaing, the locations of distribution transformers. Along ROW, construction Tharsi, Myingyan Warning signboards, verbal warnings and camp townships. MESC giving alternate assess way in the case of will continue taking road blockage were performed in the case of actions in remaining transportation of materials and doing townships. execution works. Furthermore, safety trainings were provided by PIC. Dust Implemented during MESC’s current practice is that in the case of execution of works as dust emission when trucks pass through Local road and village per current practice in construction sites, the relevant authorities nearby where trucks pass MESC. such as village heads or regional officers are through and construction instructed to alert the public for staying away sites. from the passing-through site. Noise Implemented during Trucks to the construction sites normally execution of works. pass through during daytime when most Local road and village people are going out to work and not present nearby where trucks pass at home. In the case of elderly and children through and construction in the vicinity, they were informed of the sites. noise to be generated and advised to avoid as much as possible. Operation Phase Oil Spill during oil draining No implemented at maintenance yard space measures. MESC usually does Substation Sites not perform this operation. These are done by specialized contractors or the suppliers at their own facilities.

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Item Status at 31 Comments /Action required December 2018 Trees and Vegetation Implemented This control is done through the execution of Control trimming works by trained personnel. No pesticides are used. Along the ROW Health and Safety: Injury to Implemented Regarding Health and Safety, MESC has Workers and villagers usual procedures of emergency response by calling up first-aiders and non-government Electric Poles organizations (NGOs) in the case of any emergency situation. For ADB project, the townships included have hospitals, vehicles for emergency purposes in respective hospitals, first-aiders and the assistance from fire services departments. The management of MESC has already trained and instructed all the district engineers, township engineers and responsible sub- assistant engineers and non-executives on site to coordinate with above-mentioned organizations for the fast emergency response should there be any accident happened. In addition, MESC always conducts orientations to public about electrical safety and how to respond in the case of emergency situations to public quarterly or more frequently at all the townships in Mandalay Region. The places of orientation include universities to educate students, community centers to educate public and government institutions to educate civil servants and officers. No accident or incidents were reported during the works execution.

Conclusions about Safeguards

From above paragraphs, it can be concluded MESC has partially fulfilled with the safeguard covenants and working in areas where there are rooms for improvement. MESC will strive to achieve what is necessary for environmental safeguards compliance.

Areas in which future improvement actions will be performed are: • Safety issues: provision of all the necessary PPE to every worker as per the associated risk exposition, due to their duties.. • Environmental protection issues as transformers oil spillages and leakages management provisions to avoid pollution. PIC provided formation about design provisions for new substations and probable solutions to those ones already finished, the measures will be applied just in future projects. • Concerning the spillage of transformers oil drainage operations, as previously said, these operations usually are done by specialized companies and mostly in their own facilities. The

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risk can be considered minimum, but still existing. Measures will be implemented where applies in company´s storehouses. Concerning the suppliers and service companies’ facilities, located in Myanmar, MESC will start to request this requisite to their representatives. • Despite all works concerning to this project have been finished, environmental protection measures during future works execution, against air and water pollution will be defined and implemented. To every Contractor appointed to perform works for MESC involving goods provided through ADB loans, will be requested the submission of an Environmental Management Plan to be followed by them during the execution of these woks. Safety Plan will be also requested. • Designation of a dedicated staff to Environmental Matters. • Budgetary constraints to allow the hiring of the Environmental Consultant to get knowledge transfer to MESC concerned staff. • Regarding the material recovery plan, dismantled distribution transformers was not an in this project, because there is not any dismantled unit. Rest of materials as poles and line material are stored in different locations waiting for a disposal decision. MESC will speed up the disposal as much as possible.

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Environmental Management Plan Report Region: Mandalay Period: July 1 to December 31, 2018

Potential Mitigating Measures Schedule Estimated Cost Responsible Status / Comment(s) Environmental (US$) Impact Rehabilitation and Installation Phase Project Issue advisories and notices to the Upon completion Operational Mandalay At that date MESC had not been established yet. Disclosure public about the proposed project of detailed Requirement Divisional Disclosure was done to the Divisional Prime design Engineer (ESE) Minister and other relevant authorities in the Area. Oil Spillages Incorporate the provision of a PIC gave recommendations to apply in finished and leaks from transformer containment system Included in the Pre-installation Design Engineers substations and for the new ones during the transformers (oil/grease pit) in the standard design detailed design of requirement visits of the Civil Engineer Specialist. of substations. foundations Recommendations were implemented at design stages of future projects. Decommissioning of old equipment and materials Lack of storage The generation of decommissioned Upon completion Pre- installation Chief Engineer for equipment overburden the existing of detailed design requirement decommissioned central waste materials storage areas equipment and of MOEE, YESC, MESC and the material ESE. In Mandalay, decommissioned poles and At the substation areas of ESE in cables are still stored at respective township Mandalay, Sagaing and Magway the offices. Most of the cables and conductors will open and vacant areas can be be reutilized in another network sectors. utilized as materials However, some of them not suitable for recovery/temporary waste storage reutilization and poles will be eventually area during decommissioning works. remained, and they will go through auction process. Please refer to the last edition of MRP. YESB will develop a phased in Schedule of dismantling and identify enough area for the temporary materials storage for decommissioned equipment. YESB/ESE/MESC will identify a Transformers units now operating in the recycler or buyer of the cable or other network will not be dismantled. decommissioned materials to avoid long storage on-site.

Removal of Inventory of PCB-containing Before and during C/O assistance MESC in all their attended regions is not using suspected PCB- transformers will be conducted in rehabilitation from UNIDO and PCB-containing transformers. With regards to containing coordination with MOECAF as focal UNEP the National Waste Management Plan is still

Potential Mitigating Measures Schedule Estimated Cost Responsible Status / Comment(s) Environmental (US$) Impact transformer point for the Stockholm Convention. A to MOECAF. pending to develop and implement. National Waste Management Plan will be developed by MOEAF with UNEP assistance. As a policy , YESC, MESC and ESE will no longer utilize transformers containing PCBs.

Lubricants oil recovered from dismantled transformers, batteries, oily rags, and other related materials should be treated as special waste materials. MOEE, MESC, YESC and ESE will have a temporary and separate storage area for these waste materials. The National Waste Before and during Part of the EMP . MESC did not generate this kind of waste from Waste Management Plan that will be the rehabilitation cost. the activities of this project. generation developed by MOECAF in cooperation with the UNEP will help the country deal with the management of these special waste materials, including PCB-containing equipment. Impact on Infrastructures and Vegetation Damage to At the end of the rehabilitation and At the end of Part of rehabilitation Respective Cleaning works were performed at the end of each Vegetation and installation of the power distribution rehabilitation works cost. Township rehabilitation work of the project. existing poles, ESE/YESE/MESC will clean-up the Engineers infrastructures due site and to ensure that all waste to temporary site materials are collected and the disturbance disturbed area has been rehabilitated appropriately.

Impact on cultural and heritage sites. Chance finds There are not project During the Part of Respective The PMU had not any need of applying during excavation components that will affect excavation of rehabilitation Township preventive measures in this regard because works cultural and heritage sites. In foundations of cost. Engineers the works did not affect any site of interest. case of chance finds, any poles and antiques, cultural and historical distribution artifacts that may be discovered transformers will be reported to local pad. authorities. Air Pollution Dust emission Exposed subsoil and topsoil from During Respective from laying excavations may result to fugitive excavation of Township dust emissions. Stockpiles of soil pole Electrical of power will be covered with tarps or foundation Part of the Engineers To be implemented in future projects. All distribution plastic sheeting. and rehabilitation and works are concluded. poles. transformer cost. Contractor pad. Site Engineers. Water Pollution Soil runoff from Provide silt traps on the During Part of the Respective To be implemented in future projects. All exposed stockpiles of materials to control excavation of rehabilitation Township works are concluded. excavations and flow of sediments during rainfall pole foundation cost. Engineers ground events. and transformer and disturbance pad. Contractor Site Engineers. Traffic Narrow roads may have to be During pole Part of the Respective Works affecting the normal performance of closed during the pole installation installation. rehabilitation Township the urban traffic and request the application because of the movement of cost. Engineers of traffic restrictive measures coordinated cranes and large construction with the local authorities which define and vehicles carrying the power poles. apply these measures. There will be more impacts in MESC will implement the necessaries Yangon since some of the power measures during the works implementation poles are located along narrow period in future projects. roads with more traffic. ESE/MESC/YESC will coordinate with Disruption to the township authorities to secure traffic flow. road use clearance and negotiate conditions of use prior to start the activities.

ESE/MESC/YESC will coordinate Respective with the township authorities to Township secure road use clearance and Engineers negotiate conditions of use prior to start the activities.

YESC, ESE and MESC will post Respective MESC received training in the health and warning signals and manage traffic Township safety area. Applicable topics for protection to protect the traveling public and Engineers of workers and traveling people were workers. included. Measures were mostly applied and will be completely applied in future projects.

Advisories and notices to the Warning boards showing clear information of public on the project road blockage were placed at the site of implementation temporary road work execution and temporary alternative blockage will be issued. route were provided for traffic. Occupational Health and Safety Wearing of PPEs such as hard hats Chief Not totally implemented. Workers usually and safety gloves should be Engineer have some of the request PPEs and strictly recommended. frequently none. MESC is about to purchase all the necessary items to provide these elements to their workers and requested their contractors to do the same with their workers to be applied in future works.

Implemented where applicable and necessary during the works execution.

Accidents YESC, ESE and MESC will prepare During the Part of Chief during the and implement a construction health rehabilitation rehabilitation Engineer Rehabilitation and safety plan as part of the bid works. costs. and installation documents works. Provision of barricades around site Respective where construction and Township rehabilitation works are to be Engineers and undertaken. Contractor Site Engineers

Potential Mitigating Measures Schedule Estimated Cost Responsible Status / Comment(s) Environmental (US$) Impact Community Health and Safety Impacts to YESC, ESE and MESC will During Part of Chief Engineer Done. community ensure community health and rehabilitation rehabilitation health and safety that incorporate good works cost. safety due to international practice and construction recognized standards, emergency traffic, transport response and preparedness of material, fires, procedures. Chief Engineer emergency spill of materials and YESC, ESE and MESC will Done. unauthorized coordinate with the affected Respective entry of villagers communities and township Township into working authorities. Engineers and areas. Contractor Done. Post warning signals at the sites Site Engineers

Provision of security fence on Respective Implemented in Paleik, Sinkaing, Tharsi, the distribution transformers. Township Myingyan townships. MESC will continue Engineers taking actions in remaining townships. Operation Phase Oil spillages Maintenance yard space should During Part of Chief These operations are done by specialized during transfer of be concreted and provided with transformer oil substation Engineer contractors in their own facilities. oil between an oil pit. draining costs containers and Warn workers to exercise care in activities. transformers handling oil and in avoiding spills. causing pollution of the soil and in long-term ground water pollution. Occupational Health and Safety

Health and a.- Health a Safety Plan will be PIC had already provided training on Safety: injury to implemented through the Occupational Health and Safety in all the workers due to operation phase. regions for staffs of YESC, MESC and ESE. electrocution/ex b.-Conduct training/seminar on During the trainings, detailed topics such as posure to live occupational health and safety. importance of use of PPE during execution power lines, works, danger of working at heights, use of working on c.- Periodic health and safety fall protection measures and use of proper heights, risks of training and practice drills Part of the Operational Chief tools and procedures were discussed. accidents and d.-Restricting access to electrical Operations Requirement Engineer Provision of all necessary PPE for the staff potential equipment by workers only trained plan. is not completed. MESC is working to solve exposure to and certified to work on electrical the issue for next fiscal year (FY). electric and equipment. magnetic fields. e.- Provision of PPE for workers, safety measures, personal safety devices and other precautions. Working in Testing of structural integrity prior Part of the Operational Respective heights to proceeding with the work. Operations plan. Requirement Township Use of fall protection measures. Engineers and Contractor Site Engineers. Community Provision of safety and danger Part of the Operational Respective Partially done. On-going. It will be Health and Safety warning signs on distribution Operations Plan Requirement Township concluded. transformers. Engineers

Conduct orientation seminar on Pending community health and safety programs. On-going. To be performed along the Conduct Regular inspections on equipment operation life. the line to help identify missing or corroded parts. Occupational Health and Safety (Cont)

Waste PCB-containing equipment are Part of the Operational Chief Purchased transformers are PCB free. Management not procured under this project. Operations Requirement Engineer Plan Provision of secondary spill To be implemented in future projects. containment for fuel storage facilities, area around maintenance yard.

Direct discharges contaminated with oil from spill bunds into oil- water separators.

Potential Mitigating Measures Schedule Estimated Cost Responsible Status / Comment(s) Environmental (US$) Impact Implementation of approved Chief disposal options for all waste Engineer transformer oil, equipment maintenance, residually contaminated soils and scrap material. Management Informs locals in advance through Respective Information is provided through local and Control of the village heads on the Township newspapers and social networks (FB). Vegetation at schedule of maintenance and Engineers Distribution trimming works. Pesticides are not used in our maintenance lines. Herbicides and pesticides to practices. control vegetation growth.

The Republic of the Union of Myanmar Ministry of Electricity and Energy Mandalay Electricity Supply Corporation

Power Distribution Improvement Project Material Recovery Plan Mandalay Region

Region: Mandalay Region Month: December, 2018

Contents

1.1 Material Types ...... 6 1.2 Material Disposal and Location ...... 6 1.3 Conclusion ...... 11 1.4 Annexure 01: Photographical Report ...... 11

Material Types and Disposal

1.8 Material Types

The rehabilitation works caused the decommissioning of several networks and substation components, mentioned as follows:

• Distribution Transformers. • Conductors. • Iron Poles. • Wooden Poles. • Substation Transformers

The project goal is the substitution of the old elements of the system by new ones to provide a more reliable and better-quality service to the concerned community. The decommissioned components will be reutilized as much as possible in another projects or programs of MESC from 2019.

1.9 Material Disposal and Location

The usual practice in Myanmar for decommissioned material considers three alternatives for they disposal:

• Reutilization, when is possible. • Auction: sell to third parties as scrap. • Abandon.

For decommissioned material in this project only the first two options are considered. In most of the cases the reutilization option is the suitable option. The current location of the components is shown in the following tables.

Power Distribution Improvement Project Material Recovery Plan Area: Mandalay Region Type of Material : Distribution Transformers

Replaced Units Action to Take Unit Recyclable Units (No) Not Recyclable Units (No) Item District Township (Nos.) to Qty KVA Location Qty KVA Locatio Reutilization Auction Abandon Estimated be (No). n Date replaced 1 Kyautse Sinkaing 0 2 Kyautse Paleik 0 3 Meiktila Meiktila 0 4 Meiktila Tharsi 0 5 Meiktila Windwin 0 6 Myingyan Myingyan 0 7 Yamaethin Yamaethin 0 Total 0 0 0 0 0 Note: New transformers were used just to increase the capacity of the distribution and network extensions with the purpose of improve the reliability and quality of service. Incorporation of new customer as well.

Power Distribution Improvement Project Material Recovery Plan Area: Mandalay Region Type of Material: Line Materials / Conductors

Unit (km) Replaced Units Auction to Take Item District Township to be Recyclable Units (km) Not Recyclable Units (km) Reutilization Auction Abandon Estimated replaced Quantity Description Location Qty Volume Location Date 1 Kyautse Sinkaing 15 300 HDBC 6,8 Township store 300

2 Kyautse Paleik 15 2197.21 HDBC 4,6,8 Township store 2197.21

3 Meiktila Meiktila 50 15552 HDBC 4,6,8, Township store 15552 70mm2 4 Meiktila Tharsi 30 12467 HDBC Township store 12467 2,4,6,8 5 Meiktila Windwin 48 16049 HDBC Township store 16049 4,6,8,10, 6 Myingyan Myingyan 50 25370 HDBC Township store 25370 2,4,6,8,35m 7 Yamaethin Yamaethin 20 5149.84 HDBC 8 Township store 5149.84

Total 228 77085.05 77085.05

Note: The decommissioned conductors are currently stored in respective township's store. MESC decided to reutilize most of the decommissioned conductors (those in good condition) in rural areas. It is expected that just a minor portion of the dismantled conductors are not reusable. No significative auction is expected for cables and conductors. , and some of them have being reutilized. It is understood that parts of these decommissioned conductors which are not in the suitable condition to reutilize will remain in store for auction.

Power Distribution Improvement Project Material Recovery Plan Area: Mandalay Region Type of Material: Poles

Item Replaced Units Action to Take Unit Recyclable Units (No) Not Recyclable Units (No) Reutilizatio Auction Abandon Estimate District Township (Nos.) Quantit n d Date to be y (No). Volume Locatio Quantit Volume Location replace n y d 9M Iron Township 1 Kyautse Sinkaing 100 100 Pole store 100 12/18

9M Iron 2 Kyautse Paleik 90 90 & Township 90 12/18 Woode store n Pole 9M Iron Township 3 Meiktila Meiktila 475 475 & store 475 12/18 Woode n Pole 9M Iron 4 Meiktila Tharsi 428 428 & Township 428 12/18 Woode store n Pole 9M 5 Meiktila Windwin 285 285 Woode Township 285 12/18 n Pole store 9M Iron 6 Myingyan Myingyan 428 428 ,Zinc Township 428 12/18 Coated store Iron & Woode n Pole

9M Iron 7 Yamaethin Yamaethi 285 285 & Township 285 12/18 n Woode store n Pole Total 2091 0 2091 2091

Note:

Dismantled poles in principle are considered no recyclable. MESC intention is to avoid the future use of wooden poles in their networks. The poles will undergo auction process as scrapped wood.

Power Distribution Improvement Project Material Recovery Plan Area: Mandalay Region Type of Material: Substation Transformers

Disposal Plan: All the transformers units are being reutilized. Current location of all them are the same substations in which were operating before the starting of rehabilitation works. They are still connected to the grid.

Location:

No of Transformer Units District Townships

66/11 kV 33/11 kV Sinkaing Kyaukse Paleik 1 Meiktila Meiktila Thazi Wundwin Myingyan Myingyan Yamethin Yamethin Aungmyethazan 2 Maha Aungmye 1 Mandalay Chanayethazan 2 Patheingyi 1 Chanmyathazi 1 Pyin oo Lwin Tha Beik Kyin 1 Nyaung U Nyaung-U 2 Subtotal 2 9

1.10 Conclusion The project rehabilitation did not generate transformers units to be auctioned. All the decommissioned units are in process of be reinstalled in another sector of the network. For iron poles the decision is also the reutilization in Chin State network. Regarding the decommissioned substation transformers, they will continue in commercial operation in the current location of new ones. The remaining components as cables, conductors and wooden poles cannot be reutilized and will be auctioned (cables and conductors) and abandoned (wooden poles).

1.11 Annexure 01: Photographical Report Following pictures show storage conditions of decommissioned materials. No distribution transformers were dismantled. 1) Storage of cables Storage Area a. In Paleik Township Office Storage Area

b. In Meiktila Township Office Storage Area

2) Storage of poles in Paleik Township Office Storage Area a. In Paleik Township Office Storage Area

b. In Sinkhaing Township Office Storage Area

c. In Meiktila Township Office Storage Area