Initial Environmental Evaluation Initial Environment Evaluation Report Document Stage: Draft Project Number: 38456-03 June 2009 PAK: MFF for Power Distribution Enhancement Program (Tranche 2) Choa S aidan S hah – N. P . S ethe 132 kV Transmission Li ne and U pgradation of N .P S ethe 66 kV Grid Station to 132 kV Prepared by Islamabad Electric Supply Company (HESCO), Governent of Pakistan for the Asian Development Bank (ADB). The Initial Environmental Evaluation Report is a document of the borrower. The views expressed herein do n ot n ecessarily r epresent t hose of A DB’s B oard of D irectors, Ma nagement, or s taff, and m ay be preliminary in nature. Pakistan: Power Distribution Enhancement MFF Project (Loan 2178 SF-PAK) INITIAL ENVIRONMENTAL EXAMINATION Choa Saidan Shah - N.P.Sethe 132 kV Transmission Line and Up-gradation of NP Sethe 66 kV Grid Station to 132 kV Tranche 2 Submitted to: Asian Development Bank June, 2009 by Islamabad Electric Supply Company Government of the Islamic Republic of Pakistan Power Distribution Enhancement Multitranche Financing Facility – Tranche 2- Choa Saidan Shah 132 kV Transmission Line and Up-gradation of NP Sethe 66 kV Grid Station to 132 kV Initial Environmental Examination Table of Contents 1. Introduction 1 1.1 Overview 1 1.2 Scope of the IEE Study and Personnel 3 2. Policy and Statuary Requirements in Pakistan 4 2.1 Statutory Framework 4 2.1.1 Pakistan Environmental Protection Act, 1997 4 2.1.2 Pakistan Environmental Protection Agency Review of IEE and EIA Regulations, 2000 4 2.1.3 National Environmental Quality Standards 6 2.1.4 Other Relevant Laws 6 2.2 Structure of Report 6 3. Description of the Project 7 3.1 Type of Project 7 3.2 Categorization of the Project 7 3.3 Need for the Project 7 3.4 Location and scale of project 8 3.5 Proposed Schedule for Implementation 10 4. DESCRIPTION OF THE ENVIRONMENT 11 4.1 Project Area 11 4.1.1 General Characteristics of Project Area 11 4.1 Affected Administrative Units 11 4.2 Physical Resources 11 4.2.1 Location, Topography, Geography, Geology, and Soils 11 4.2.2 Climate and Hydrology 12 4.2.3 Groundwater and Water Supply 12 Surface Water 12 4.2.4 Air Quality 13 4.2.5 Noise 13 4.3 Biological Resources 13 4.3.1 Protected Areas / National Sanctuaries 14 4.4 Economic Development 14 4.4.1 Agriculture, Livestock and Industries 14 Energy Sources 15 4.5 Social and Cultural Resources 15 4.5.1 Population Communities and Employment 15 4.5.2 Education and Literacy 15 4.5.3 Health Facilities 15 ii Power Distribution Enhancement Multitranche Financing Facility – Tranche 2- Choa Saidan Shah 132 kV Transmission Line and Up-gradation of NP Sethe 66 kV Grid Station to 132 kV Initial Environmental Examination 5. Cultural Heritage and Community Structure 16 6. SCREENING POTENTIAL ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES17 6.1 Project Location 17 6.1.1 Impact Assessment and Mitigation 17 6.2 General Approach to Mitigation 17 6.2.1 Cultural Heritage, Mosques, Religious Sites, and Social Infrastructure 18 6.3 Potential Environmental Impacts in construction 18 6.3.1 Encroachment, Landscape and Physical Disfiguration 18 6.3.2 Trees, Ecology and Protected Areas 19 6.3.3 Hydrology, Sedimentation, Soil Erosion 19 6.3.4 Air Pollution from Earthworks and Transport 19 6.3.5 Noise, Vibration and Blasting 20 6.3.6 Sanitation, Solid Waste Disposal, Communicable Diseases 20 6.4 Potential Environmental Impacts in operation 21 6.4.1 Air pollution and noise from the enhanced operations 21 6.4.2 Pollution from oily run-off, fuel spills and dangerous goods 21 6.5 Enhancement 22 7. INSTITUTIONAL REQUIREMENTS & ENVIRONMENTAL MANAGEMENT PLAN 23 8. PUBLIC CONSULTATION AND INFORMATION DISCLOSURE 26 8.1 Approach to Public Consultation 26 8.2 Public Consultation Process 26 8.3 Results of Public Consultation 26 9. CONCLUSIONS 27 9.1 Findings and Recommendations 27 9.2 Summary and Conclusions 27 iii Power Distribution Enhancement Multitranche Financing Facility – Tranche 2- Choa Saidan Shah 132 kV Transmission Line and Up-gradation of NP Sethe 66 kV Grid Station to 132 kV Initial Environmental Examination Figures and Maps Figure 1.1 Pakistan EIA Process Figure 1.2 Letter from EPA Figure 2.1 Location of Choa Saidan Shah-N.P.Sethe TL Attachements Attachement 1 Environmental Management Plan (matrix) Attachment 2 Monitoring Plan (matrix) Attachment 3 Summary of Public Consultation Attachment 4 Preliminary program for design, construction and commissioning Attachment 5 Overall Trees and other productive infrastructures Attachment 6 Villages and infrastructure Attachment 7 Trees affected Attachment 8 Photographs Attachment 9 Typical Bunds for Transformers Name Initials Date Prepared by Abdul Razzaq Saleemi Authorized by Javed Rashid IESCO iv Power Distribution Enhancement Multitranche Financing Facility – Tranche 2- Choa Saidan Shah 132 kV Transmission Line and Up-gradation of NP Sethe 66 kV Grid Station to 132 kV Initial Environmental Examination ABBREVIATIONS ADB Asian Development Bank COI Corridor of Influence CSP Country Strategy Program DFO Divisional Forest Officer DIZ Direct Impact Zone DoF Department of Forests EA Environnemental Assessment EARF Environment Assessment Review Framework EIA Environment Impact Assessment EMP Environmental Management Plan GDP ` Gross Domestic Product GIS Gas Insulated Switchgear GOP Government of Pakistan GS Grid Station GSS Grid Sub-Station LARP Land Acquisition and Resettlement Plan Leq Equivalent sound pressure level MPL Maximum permissible level NEQS National Environmental Quality Standards NGO Non Governmental Organization PC Public consultation PEPA Punjab Environmental Protection Agency PEPAct Pakistan Environment Protection Act 1997 (as regulated and amended) PPMS Project Performance Monitoring System REA Rapid Environmental Assessment SIA Social Impact Assessment S-P Subproject SR Sensitive Receiver TL Transmission line TOR Terms of Reference Rupee, PKR Unit of Pakistan currency. $US approx Rs. 79.8 v Power Transmission Enhancement Multitranche Financing Facility- Choa Saidan Shah to N.P.Sethe 132 kV Transmission Line and Up-gradation of NP Sethe 66 kV Grid Station to 132 kV Initial Environmental Examination 1. Introduction 1.1 Overview 1. This document is the Initial Environmental Examination for the Tranche 2 sub project - Choa Saidan Shah to N.P.Sethe 132 kV Transmission Line and Up-gradation of NP Sethe 66 kV Grid Station to 132 kV proposed by Islamabad Electricity Supply Company; (IESCO) under Asian Development Bank (ADB) financed Power Distribution and Enhancement Multi-tranche Finance Facility (PDEMFF) proposed by Islamabad Electricity Power Company [IESCO] [Fig1.1 and Fig1.2]. The IEE has been prepared according to the ADB Guidelines. 2. Government of Pakistan (GoP) has requested ADB to provide the PDEMFF to facilitate investments in power distribution and development of networks of eight independent distribution companies (DISCOs) that distribute power to end user consumers. The funding from ADB is expected to be released in stages (tranches). The Power Distribution Enhancement (PDE) Investment Program is part of the GoP long term energy security strategy. The proposed ADB intervention will finance new investments in PDE and assist capacity building of sector related agencies. The investment program will cover necessary PDE development activities in secondary transmission / distribution networks of eight DISCOs. The PDEMFF activities include extension (additional transformers) and augmentation (replacement of transformers with higher capacity) distribution line extensions, new and replacement distribution lines, additional substations, transformer protection and other non network activities such as automatic meter reading, construction equipment and computerized accounting. New distribution lines to and from various network facilities and some of the above activities will also be included in the later trenches. The proposed PDEMFF facility has been designed to address both investment and institutional aspects in the electrical power sector. 3. This IEE presents the results and conclusions of environmental assessment for the Choa Saidan Shah to N.P.Sethe 132 kV Transmission Line and Up-gradation of N.P. Sethe 66 kV Grid Station to 132 kV subproject proposed by IESCO, and is submitted by Pakistan Electric Power Company (PEPCO) on behalf of IESCO. PEPCO has been nominated by Ministry of Water and Power (MOWP) to act as the Executing Agency (EA) with each DISCO being the Implementing Agency (IA) for work in its own area. PEPCO‟s role in the processing and implementation of the investment program is that of a coordinator of such activities as preparation of PC-1s and PFRs (Periodic Financing Request), monitoring implementation activities; that includes submission of environmental assessments for all subprojects in all trenches of the PDEMFF under ADB operating procedures. An IEE has been carried out to fulfill the requirements of ADB Guidelines (May 2003). This IEE study report is used to complete the Summary Initial Environmental Examination (SIEE) for disclosure by ADB if necessary. 4. The environmental assessment requirements of the GoP for grid stations and power distribution subprojects are different to those of ADB. Under GoP regulations, the Pakistan Environmental Protection Agency Review of Initial Environmental Examination and Environmental Impact Assessment Regulations (2000) categorizes development subprojects into two schedules according to their potential environmental impact. The proponents of subprojects that have reasonably