EMR: Pakistan: Power Distribution Enhancement Investment Program

Environmental Monitoring Report

Bi-annual Environmental Monitoring Report January 2013

PAK: Power Distribution Enhancement Investment Program, Tranche 2

Prepared by Hyderabad Electric Supply Company, Sindh for the Asian Development Bank. NOTES

(i) The fiscal year (FY) of the Government of the Islamic Republic of Pakistan and its agencies ends on 30 June.

(ii) In this report, "$" refers to US dollars.

This environmental 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. ADB Bi-Annual Environmental Monitoring Report

Project Number: 2727-PAK-Tranche-II (July-December, 2012)

Islamic Republic of Pakistan: Power Distribution Enhancement Investment Project Financed by the Asian Development Bank

Prepared by: Faiz Mohammad Domki, Dy. Manager (Env & Safeguard) PMU, HESCO, Hyderabad-Pakistan

For, Hyderabad Electric Supply Company Pakistan Electric Power Company (PEPCO)

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.

Asian Development Bank Table of Contents

Subject Page No.

Part I: Introduction

1.1 Basic Data 4

1.2 Introduction 5

1.3 Scope & Status of Work 6

Part II: Environmental Monitoring 7

Part III: Environmental Management

3.1 Submission of EIA/IEE reports 8

3.2 Findings/Observations 8

3.3 Corrective Actions 9

3.4 Consultation & Complaints 9

EIA Submission & Follow-up Letters To Sindh EPA Annex- I

Follow-up Letters To Sindh EPA Annex- II

Env. & Social Complaint Register Annex-IV

Environmental Monitoring Check List Annex-V

2 Abbreviations

ADB Asian Development Bank AH's Affected households AP's Affected persons BPI British Power International CED Chief Engineer Development E& SS Environmental and Social Safeguard EIA Environment Impact Assessment EPA Environmental Protection Agency HESCO Hyderabad Electric Supply Company GRC Grievance Redress Committee GOP Government of Pakistan IEE Initial Environmental Examination ITC Increase in transformer capacity=augmentation Km kilometer KV kilo-Volt MOWP Ministry of Water and Power PEPCO Pakistan Electric Power Company PIC Project Implementation Consultant PDE Power Distribution Enhancement PMU Project Management Unit PDEMFF Power Distribution Enhancement Multi Tranche Financing Facility

3 Part I: Introduction

1.1 Basic Data of Tranche-II a. ADB Loan No. 2727-PAK

b. Project Title Power Distribution Enhancement Investment Project Tranche-2

c. Borrower Islamic Republic of Pakistan

d. Executing Agency Pakistan Electric Power Company (PEPCO)

e. Implementing Agency Hyderabad Electric Power Company Ltd.

f. Total Project Cost US$ 35.35 Million

j. Loan Signing Date January 28, 2011 k. Date of Effectiveness October, 5, 2011 m. Date of Physical March 31, 2015 Completion

4 1.2 Introduction

1. Hyderabad Electric Supply Company Ltd. HESCO is a Public Limited Utility

Company, established in 1998 under Companies Ord nance 1984 and is responsible for distribution of Electric Power within itS erritorial jurisdiction in entire Sindh except Karachi.

2. HESCO through GoP has undergone a Project Finar4ing agreement with Asian Development Bank for:

a) Strengthening the capacity of Power Distributio and Transmission

networks b) To meet the increasing electricity demand in the selected areas more efficiently c) To upgrade the existing power infrastructure.

3. Overall the proposed MFF has been designed to address both investment and institutional aspects in electric power sector. Development Objectives/

Project Purpose will be fully achieved after completion of the proposed Sub-projects.

4. So far no construction activity has started at any of the subprojects in Tranche-II.

5. Environment and Safeguard Unit (ESU) HESCO is presently staffed with Mr. Asif Sheeraz Assistant Manager (Env), Mr. Ali Khan Jamali Assistant Manager (Admn) and Mr. Faiz Muhammad Domki Additional Deputy Manager (Electrical Engineer). The later are working as Assistant Manager (Social Impact) and Deputy Manager (Environment & Social Safeguard) PMU, HESCO respectively.

6. PD (GSC), Contractor(s) and other related staff has been provided orientation on Environmental Management & Implementation of ADB guideline and rules/regulations of Government of Pakistan.

5 1.3 Scope & Status of Project:

Sr. Length of Sub-Project Transmission Status No. Line (km) Construction of New 132 kV Grid station Contract Signed 1. 0.05 on 29-06-2012 Jacobabad-II.

Conversion of 66 kV Larkana Grid Station Contract Signed on 29-06-2012 2. into 132 kV Grid Station and allied 132 kV 2.44 Transmission Line

Conversion of 66 kV Sukkur City Grid Station Contract Signed on 29-06-2012 3. into 132 kV Grid Station and allied 132 kV 7.63 Transmission Line

Conversion of 66 kV Talhar Grid Station into Contract Signed on 29-06-2012 4. 132 kV Grid Station and allied 132 kV 2.00 Transmission Line

Second Circuit Stringing of Sanghar- 5 132 kV Transmission . 64.38 Bidding under Line process

Second Circuit Stringing of Shikarpur- Larkana 132 kV Transmission Line 6. 67.90 Bidding under process

Construction of Larkana-Mehar-Dadu 132 7. 127.72 Bidding under kV SDT Transmission Line (New) process Part II Environmental Monitoring

1. GSC & Contractor(s) have been apprised to m nitor Environmental aspects during the implementation of Tranci e II subprojects. No major civil work has been started at subproject ites. Environmental Management Plan (EMP) has been made part of bidding documents

and contractor(s) are bound to comply with Environmental Management Plan (EMP) and during execution each project will be monitored to check the compliance with EMP.

2. Environmental Social Monitor (ESM) will fill checklists / monitoring proforma which will be duly signed by SDO (GSC)/ ESI on fortnight basis. The record of above parameters will be kept as specified in

bidding documents.

3. Environmental Monitorng Check list filled during visit in January, 2013 on Talhar Sub-Project (Annex-V).

Part -III Environmental Management 3.1 Submission of EIA /IEE Reports 1. Initial Environmental Examination (IEE) Reports were prepared by PEPCO Consultant M/S British Power Internationa (BPI) and received

by HESCO through PEPCO in November / December 2010.

2. These reports were reviewed, converted from I E format to EIA to comply with the local statutory requirements / Iaw

3. Approval of these EIAs was accorded by worthy CEO, HESCO, and then uploaded on HESCO's official website (www.hesco.gov.pk).

4. EIAs have also been submitted to EPA Sindh for Environmental

Approval (Annex-I). Though EPA has been approached from time to time vide letters (Annex-II) but approval is still under process which will be obtained as soon as possible.

5. The Environmental Monitoring and Management Plan (EMMP) enlisted in EIA Reports have been made part of the bidding documents of civil works (Turnkey Project).

3.2 Findings/Observations

Findings/ Observations noted during the site visit. Its detail is as follows:

a) Land for 132 KV Jacobabad-II new grid stations has been purchased on willing-seller, willing-buyer basis.

b) No potential significant environmental impacts associated with the subprojects have been recorded as construction work has not been

started.

8 c) There will be some environmental impacts during execution work of

subprojects which will be mitigated by implementing EMP.

d) Suitable control measures will be required in prOj ct area to minimize/ mitigate environmental impacts, disruption, contamination of surroundings arising out due to construction material/ chemicals

handling/ storage and disposal of construction waste.

3.3 Corrective action plans

Since there is no commencement of any civil work at subproject sites,

therefore, no Non-Compliance (NC), Observation neither reported nor corrective action (CA) taken at project sites, however the works are

expected to be started soon.

3.4 Consultation and Complaints Environmental Social Complaint Register (Annex-IV) will be placed on each active subproject site. So far, No affected person/ household has logged any Complaint in

PMU Office.

Implementation Report on EIA/IEE Mitigation Requirements

Action Reference Requirement Action to date Required / Comment Compliance of Inclusion of EIA/ EIA/ IEE Reports have DONE EIA/IEE Report IEE Reports in been included/ made during Execution Bidding documents part of the Bidding of Project Civil Documents Work

Compliance of Inclusion of EMMP EMMP Documents DONE Environment in Bidding have been included/ Monitoring & documents made part of the Management Plan Bidding documents during execution of Project Civil Work

Information EMMP EMMP Disseminated DONE Dissemination Dissemination on on active sites of work site of work Formats for Formats for Monitoring Formats DONE Monitoring Monitoring EMMP are ready

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Date of Any Other Implementation Suggested Implementation of Mitigation Implementation Status of Mitigation Suggested Measure Ta ken for Remarks Responsibility Mitigations Measures Mitigation Redressal of Measures Measures Mitigtion Measure 1 HYDERABAD ELECTRIC SUPPLY COMPANY HESCO Bungalow N4.A-1 HESCO Power Wins Colony HUssainabad Hyderabad 0070,Fax No. 022-381 2299 www.hesco.gov.pk Phone No.022-926 Dated /01/2013 No.CEO/HESCO/PMU/E&SS/

THE Director Genera!, Sindh Environmental PhDtection Agency (SEPA) Plot No. ST-2/1, Sector 23 Korangi Industrial Area, Karachi Fax No. 021-3506 5940 ASIAN Subject: ENVIRONMENTAL IMPACT ASSESSMENT (EIA) OF DEVELOPMENT BANK TRANCHE-II SUB-PROJECTS.

Reference: 1.Your office letter No. 2011/01/03/EIA/55/1260/30 dated 30-04-2011 2.This office letter No. 9782-85 dated 20-06-2011 3.This office letter No. 341 dated 18-07-2012

This is with reference to letters referred above, vide which Public Hearing for the subject project was scheduled on 23-06-2011, but due to some unavoidable circumstances, it was not conducted (postponed). In this regard, it is requested to fix any suitable date in the month of

February, 2013 to conduct the same.

GENERAL—MANAGER (DEV) PMU, HESCO Hyderabad CC to: - Master File. ©0

■arsetemexe tvet HEseo, HYDERABAD ELECTRIC SUPPLY COMPANY Bun al w No A-1 ES Power in. Colo Hussain bad Hyderabad

www.hesco.gov.pk Phone No.022-926 0070, Fax No.022-381 2299

No.CEO/HESCO/PMU/CE(Dev)/E8tSS/ 41 Dated://07/2012

THE DIRECTOR (TECH) Sindh Environmental Protection Agency (SEPA) Plot No. St-2/1, Sector 23 Korangi Industrial Area, Karachi Fax No. 021-3506 5940

Subject: ENVIRONMENTAL IMPACT ASSESSMENT (EIA) OF ASIAN DEVELOPMENT BANK TRANCHE-II SUB-PROJECTS,

Reference: This office letters No. 9782-85 dated 20.062011 and even No. 8870-71. dated 29.03.2012 (copies enclosed).

Please refer to this office letters under reference vide which it was requested to conduct a meeting in EPA Regional Office Hyderabad or in HESCO if convenient to you while visiting Hyderabad in order to finalize the subject report/approval but the same has yet not been carried out.

In this regard, it is again requested to arrange the meeting and conclude the report as the subject sub-projects are at thq verge of beginning and the ADB is pressing hard for its EIA's approval.

Matter most urgent please.

DA/As above Manager (P, &C) Project Management Unit HESCO Hyderabad

CC to: Master File, HYDERABAD ELECTRIC SUPPLY COMPANY 1111E,■,:i00 Bungalow No.A-1, HESCO Power Wing Colony, Hussainabad. Hyderabad www.hesco.gov.pk Phone No.022-926 0070, Fax No.022-381 2299 No.CE(Dev)/PMWHESCO/E&SS/ g 87_0 Dated: /03/2012

The Director (Tech), Sindh Environmental Protection Agency (SEPA), Plot No. ST-2/1, Sector 23, Korangi Industrial Area, Karachi. Fax No. 021-3506 5940 •

Subject: Environmental Impact Assessment (EIA_L of Sub-orolects under APB Tranche-II,

This is with reference to your office letter No.EPA/2011/01/03/EIA/55/1260/30 dated 30-04-201/ and HESCO Public Notice dated 11.05.2011 regarding Public Hearing fixed on 23rd June, 2011 in Committee Room, HESCO Power Wing Colony Hussaknabad, Hyderabad for which several schedules were made to finalize the pending discussion for the subject approval but unfortunately postponed due to one reason or another. While now due to law and order situation at Karachi and exigency of official work at HESCO and frequent visits to Lahore and Islamabad, it is not feasible for the undersigned to attend a meeting at. Karachi at present It is, therefore, requested that a meeting may be conducted in EPA Regional Office, Hyderabad or in HESCO if convenient to you while visiting Hyderabad.

Chief E gineer (Dev), PMU, HESCO, Hyderabad CC to: / Director General, Sindh Environmental Protection Agency, Karachi. Master File.

'm— HYDERABAD ELECTRIC SUPPLY COMPANY surtgaki H derabA4

www.hesco.gov.pk Phone No.022-926 0070, Fax No.022-381 2299

No .c.E(Dev)/PMUMESCO/E&SS/ 77 2 Dated.. 2-n/06/2011

The Director General, Sindh Environmental Protection A4ency (SEPA), Piot No. ST-2/1, Sector 23, Korangi Industrial Area, Karachi. Fax No. 021-3506 5940

Subject: Request for Postponement of Public Hearing of the EIA Report for ADB Tranche-H Projects.

Ref'nce: 1. Telephonic Conversation with Mr. Imran Sabir, Asstt. Director(SEPA) on 18-06-2011, regarding the postponement of Public Hearing. 2. Your office letter No. 2011/01/03/EIA/55/1260/30 dated 30-04-2011.

It is to inform that, due to some unavoidable circumstances, HESCO is not in position to organize / attend the Public Hearing, .which was schedule on

23rd June, 2011. It is, therefore requested that, Public Hearing scheduled as above may kindly be postponed & a new date may be fixed in July, 2011 at the same venue.

Regards

(Engr. Habibullah Shaikh), Chief Engineer (Dev), PMU, HESCO, Hyderabad CC to: 1. PSO to Chief Executive Officer, HESCO, Hyderabad. 2. HR & Admn Director, HESCO, Hyderabad. 3. Public Relation Officer (PRO), HESCO, Hyderabad.

- Master File.

MR. T AIR/gm SA8IR Hit3. IDLREc7DR EM)

r /ix 4° • 021-3506591/0 - HYDERABAD ELECTRIC SUPPLY COMPANY HESCO Bungalow No.A-1, HESCO Power Wing Colony, Hussainabad, Hyderabad

www.hesco.gov.pk , Phone No.022-926 0070, Fax No.022-381 2299 No.CE(Dev)/PMU/HESCO/ E&SS/ '3 1 Li 3 Dated: )A.1/03/2011

The Director General, Sindh Environmental Protection Agency (SEPA), Plot No. ST-2/1, Sector 23, Korangi Industrial Area, Karachi. Fax No. 021-5065940

Subject: Public Hearing of the E1A Report,

Reference: Your letter No. 2011/01/03/EIA/55/1 6 dated 16-03-2011 .

It is submitted that, All Pakistan Newspapers Society (APNS) has suspended publishing the advertisements ofi Flyderabad Electric Supply Company (HESCO) from 16-03-2011 vide letter) No. APNS/2011/67 dated 16-03-2011 (copy enclosed); hence the Public NotiCe- for Public Hearing which was required to be published on or before 24-03-2011 has not been published. It is expected that the matter will be resolved in week's time; it is

therefore requested that, new date for Public Hearing may please be fixed in the 2nd week of May, 2011 at the same venue.

Regards \is

DA/A-s /442"12- (Engr. Habiilfah Shaikh), Chief Engineer (Dev), PMU, HESCO, Hyderabad CC to: 1. PSO to Chief Executive Officer, HESCO, Hyderabad. 2. Public Relation Officer (PRO), HESCO, Hyderabad, matter be resolved at the earliest as work is suffering.

- Master File. POWERDIS TRIBUTIONEN HANCEMENTINVE STMENTPROG RAM CTIONPHA SEO FTRAN CHE — II, PEPCO CONSTRU B. A.

ENVIRONMENTAL MONITORING CHECKLIST

Name of DISCO: HYDERABADEL ECTRICSUPPLY CO MPANY (HESCO) Sub Project Type &Location: Conversion of66 k VTa lhar GridSta tion Name of Observer/Inspector: Fiaz Muhammad Domki 15-01-2013 a U) (/)

z STATUSI DESCRIPTION COMMENTS Yes

HYDROLOGY AND DRAINAGE ASPECTS

Are weather conditions feasible during particular construction activities undertaken? YES

Are limitations considered on excavation depths as per area's water table profile? YES r co w ol Is landscaping plan used as an integrated component of construction activity as an erosion control measure? o Z 4 Is there any removal of trees required? 0 z 5 Is restoration process done where construction sites have been cleared the vegetation? Not required at this stage.

ORIENTATION FORCONT RACTOR, ANDW ORKERS r co w — Is DISCOEnv ironmentalSo cialCe ll designated their environmental specialist to monitor and progress all environmental statutory and recommended obligations? r w w CNI Are specialbr iefings conductedfo r managers and / or on-site training for the contractors and workers on the environmental requirement of the project? 01 Is agreement on critical areas to be considered and necessary mitigation measures I YES

SMECIntemational Pty Ltd (Facility Management Consultant), PEPCO Project POWERDISTRIBUTION ENHAN CEMENT INVESTMENTPROG RAM

CONSTRUD. CTION PHASEO FTRANCHE - II, PEPCO C.

co cd ci STATUS

z COMMENTS

DESCRIPTION o

Yes implemented among all parties who are involved in project activities?

As the work has been recently started, Are continuous progresses reviewed and refresher sessions properly followed? hence refresher sessions willbe followed in future with letter and spirit.

WATER QUALITY

As the construction work is being carried 0 lan compiled one monthbe fore commencement of z Is temporary drainage management p out inside the existing GridSta tion, where construction works? the drainage facility already exists. 0 Are the proper installation of temporary drainage and erosion control done before z Not required in this case, as work is inside construction works within 50 m of water bodies? the existing Grid Station.

Are proper maintenance and management construction of temporary drainage and erosion 0 z

control measures, including training of operators and other workers done to avoid pollution Planned in near future. of water bodies by the considerate operation of construction machinery and equipment? >- Are storage oflu bricants, fuels and other hydrocarbons in self-containedde dicated w enclosures done more than 50 m away from water bodies?

5 Is disposal of solid waste from construction activities disposing properly? YES

Not required, as no water body (s) is very 0 nd spoil stockpiles covered properly with a suitable material z Are the construction materials a near to project site and site is inside to reduce materialloss into water bodies? boundary wall of existing GridSta tion. 0 z ' Is topsoil stripped material stored near natural drainage? 0 Z Are borrow sites (if required) being close to sources of drinking water? Not required in this case.

AIR QUALITY

Are all heavy equipment and machinery fittedin full compliance with the national and local YES tN SMECIntemational Pty Ltd (Facility ManagementConsu ltant), PEPCO Project

POWER DISTRIBUTIONENHAN CEMENTINVESTME NTPROG RAM CONSTRUCTION PHASEOF TRANCHE - II, PEPCO ci (i) z STATUS

COMMENTS

DESCRIPTION 0 ' S 0) (13 0

Are stockpiled soil and sand slightly wettedbe fore loading, particularly in windy conditions? YES co W >- co e fuel-efficient and well-maintainedhau lage trucks employedto minimize exhaust

Ar emissions? ,r Are vehicles transporting soil, sand and other construction materials covered? YES

Are speed limitations applied to material transporting vehicles? YES 5 (0 Is transport throughdense ly populated areas avoided? YES 0 z r- No any orchard or fruit farm is near this ithin the vicinity of orchards andfru it farms? Is there any plan to minimize the dust w sub-project.

8 Is spraying of water done in bare areas? YES

0) Are concrete plants to be controlled in line with statutory requirements and are not close to Concrete mixers are being used at site sensitive receptors? and are away from sensitive receivers.

10 Is EnvironmentalMon itoring executed as per contract provision? YES

ROUND VIBRATION 0 z .- Are requirements for piling and use of powered mechanical equipment reviewedwi thin 100m of sensitive receivers (SRs)? 0 z CV Are conditions of buildings and conduct public consultation reviewed with sensitive receivers to establishless sensitive time for works involving piling and schedule works accordingly? 0 z Are non-percussive piling methods to be used wherever practicable? Not requiredin this case. 0 z 4 Are percussive piling methods conductedin daylight hours? Not requiredin this case.

SMECIntemational Pty Ltd (Facility ManagementCo nsultant), PEPCOPr oject

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z STATUS li U)

z COMMENTS

DESCRIPTION 0 Yes

Is campsite properly fenced to prevent trespassing?

H. SAFETYP RECAUTIONSFOR THE WORKERS Lu >- u) - Is induction safety training providedfor all staff adequate warning signs in health and safety 1 matters? Lu >- u) N nts provided to the workers before commencement the Are the required safety equipme work? Lu co >- Cl) Are the required PPEs (skull guard or hard hat, safety belts, hard toe shoes, etc.) provided to the workers before commencement of work?

.4 Will be considereddur ing transmission line -

tic field of high tension wires? Is specific height maintained to avoid contact with magne construction.

TRAFFICCO NDITION

.-- Are the temporary hauls and access routes plan submitted one month prior to start of Construction site is enclosedby a works? boundary wall in an existing GridSta tion.

Construction site is enclosed by a boundary wall. No school or hospital is

Cs1 near the site of work. Is it considered to avoid routes in vicinity of schools andho spitals?

SOCIALIMPACTS Lu >- U) .-- Is it considered to avoid potentialfor spread of vector borne and communicable diseases from labour camps? Lu U) >- CV Is there any arrangement for the workers awareness orientation and appropriate sanitation maintenance? U, SMECIntemational Ply Ltd (Facility ManagementCon sultant), PEP COProjec t

POWER DISTRIBUTIONENHAN CEMENT INVESTMENT PROGRAM CONSTRUCTIONPHAS E OF TRANCHE - II, PEPCO U) z ci li STATUS

DESCRIPTION z COMMENTS O

Yes w w >- co Is any complaint register maintainedfor the complaints of the people on construction nuisance / damage close to ROW?

..zr Is there any management plan for the registered complaints? YES

5 Is contractor having some alternative arrangements to avoidloca l community impacts? YES

ENING AND CAPACITYBUIL DING

K. INSTITUTIONALSTRENGTH w Lu Is there any plan for the capacity building of Environmental, Social andGr idSta tion >- Construction (GSC) staff?

SMECIntemational Pty Ltd (Facility Management Consultant), PEPCOProjec t