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Pakistan: MFF Power Transmission Enhancement Investment Program II, Tranche 3

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Pakistan: MFF Power Transmission Enhancement Investment Program II, Tranche 3 Social Monitoring Report April 2021 Period Covering: Jul-Dec 2020 Pakistan: MFF Power Transmission Enhancement Investment Program II, Tranche 3 Prepared by National Transmission and Despatch Company (NTDC) 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 “$” refer to US dollars. This social monitoring report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB’s Board of Directors, Management, or staff, and may be preliminary in nature. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. Multi-tranche Financing Facility (MFF 2) for 2ndPower Transmission Enhancement Investment Program (PTEIP 2), Semiannual Social Internal Monitoring Report Tranche 3 July-December 2020 Semiannual Social Monitoring Report (Internal) Semiannual Social Monitoring Report (Internal) Loan Number: 3419/3420 Reporting period: July-December 2020 Date of Submission of Draft report: 19 March 2021 MFF 2 - PAK: 2ndPower Transmission Enhancement Investment Program (PTEIP 2), Tranche 3 Prepared by: AF - Mercados Energy Markets International& M/S Tetra Tech ES Inc Joint Venture, Madrid, Spain for National Transmission Enhancement and Despatch Company (NTDC), Environment and Social Impact Cell (ESIC), WAPDA House, Lahore, Pakistan. 0 Multi-tranche Financing Facility (MFF 2) for 2ndPower Transmission Enhancement Investment Program (PTEIP 2), Semiannual Social Internal Monitoring Report Tranche 3 July-December 2020 1. Introduction: 1. The Asian Development Bank (ADB) is supporting 2ndPower Transmission Enhancement Investment Program (PTEIP 2) through second multi-tranche financing facility (MFF-2), which is implemented by National Transmission and Dispatch Company to improve Pakistan's power transmission infrastructure and management. MFF 2 has three tranches, each tranche is divided into a number of sub-projects involving the construction/ up-gradation of power grid stations (or sub-stations) and installation of power transmission lines. 2. The Tranche 3: Loan 3677 was signed in December 13 2018. It became effective in February 2019and will complete in December 2023. The loan comprises nine subprojects which are grouped in 11 contract packages for the implementation (annexure A contains List of projects). 3. Out of these 9 subprojects,3 subprojects involve construction of two new substations, one switching station and two new transmission lines in Punjab province, one subproject entails re-conducting of existing transmission lines near Lahore while remaining 4subprojects involve procurement of substation & transmission line material. 4. The tranche III subprojects funded by ADB are subject to monitoring by NTDC (for internal monitoring on a quarterly and semiannually by FMC) and external monitoring by external monitoring agency/consultant. FMC engaged by NTDC to provide an objective assessment and analysis of the implementation of LARPs, identify if there are any gaps in implementation (LARP activities as planned vs actual implementation) any deviation from safeguards compliance and actions needed to address noncompliance through corrective action plans. 5. Tranche III is currently under contract signing and bidding stage. Although no construction work has been started yet but this semiannual social internal monitoring report which is the requirement of the loan of the tranche III of (MFF-2) is prepared for the period of July to December 2020 highlighting the status of subprojects under this tranche. Annexure -1 presents tranche 3 subprojects implementation status and annexure 2 presents documents status in tranche 3 of subprojects under tranche 3. 2. Status of Implementation and monitoring 6. Tranche-III envisages construction of one 500kV Grid Station (Lahore North) along with allied Transmission Line, one 500kV switching station at Maira, one 220kV Grid Station at Jauharabad, procurement of 500kV shunt reactor & 500/220kV auto transformers, Reconductoring of 220kV New Kot Lakhpat-Bund Road- Sheikhupura T/Line and procurement of transmission line construction & Live line crew equipment. Tranche-III also supports the first large scale grid connected battery energy storage system pilot project in Pakistan. The 9 subprojects in this tranche are listed below: • ADB-300A: Construction of new 500kV Substation Lahore North along with associated 500kV & 220kV transmission lines. • ADB-300B Construction of new 500kV Maira Switching Station • ADB 300C-R: Construction of new 220kV Substation Jouharabad. 1 Multi-tranche Financing Facility (MFF 2) for 2ndPower Transmission Enhancement Investment Program (PTEIP 2), Semiannual Social Internal Monitoring Report Tranche 3 July-December 2020 • ADB-300D: Procurement & supply of 500kV Shunt Reactors & 500/220kV Auto transformer Banks for 500kV Substations Gatti & Sheikhupura. • ADB-300E: Procurement & supply of protection equipment for Asset Management North region. • ADB-301C: Re-conductoring of 220kV T/Lines Sheikhupura-Bund Road (26km), 220kV Bund Road – New Kot Lakhpat (18km) and faulty portion of 220kV Gatti – Bandala (5km). • ADB-301 D procurement & supply of transmission line construction equipment & live line crew equipment. • ADB-301E: Procurement & supply of fog resistant insulators for enhancing grid resilience to air pollution in heavily polluted area • ADB-302 Procurement of plant-design, supply, installation, testing and commissioning of grid connected battery energy storage system pilot project The subprojects that have permanent LAR impacts and status of each projects is presented below: 2.1 ADB-300A: Construction of new 500kV Substation Lahore North along with associated 500kV & 220kV transmission lines. 7. Proceedings U/S 7A & 8 have been completed on 16-12-2020. Approval of cost is awaited from BOR Punjab. Land acquisition would be completed by end of May 2021. 8. The complaint issue on LNGS has been resolved with the complainants on 02-02-2021 and an MOU was signed and shared with ADB on 03-02-2021, further details are added under GRM. The LARP and LRP for Grid Station will be updated in August 2021. 2.2 ADB-300B: Procurement of plant- design, supply, installation, testing and commissioning of 500kV Maira Switching station 9. Proceeding U/S -4 is completed on 04-12-2018. Section -5 gazette has been submitted to D.C Rawalpindi for signature and hopefully it will be signed on 22-03-2021 for further publication through Punjab press. The LARP will be updated by end of June 2021. 2.3 ADB-300C-R: Procurement of plant-design, supply, installation, testing and commissioning of Jauharabad 220kV substation (3x160MVA) and associated transmission line (2 km) 10. Award of land under section 11 announced on 01/02/2021. Land acquisition completed. A combined LARP for G/S and T/Lwill be updated by end of July 2021. 2.4 Status of construction work: There is no construction work undertaken during the reporting period. 2 Multi-tranche Financing Facility (MFF 2) for 2ndPower Transmission Enhancement Investment Program (PTEIP 2), Semiannual Social Internal Monitoring Report Tranche 3 July-December 2020 3. Grievance Redress Mechanism (GRM) 3.1 Summary of complaint of LNGS A complaint was filed to ADB OSPF by 40 complainants of Lahore North Grid Station against the land acquisition of LNGS in early 2019. The complainant were unwillingness to give land for the proposed project due to the following major reasons; • Land owners depend on the land for livelihood and live in extended families that have widows and disabled persons also. The land acquisition will destroy their family net and result in compensation and inheritance disputes among the extended family members; • current market rate in the area is around Rs.10-13 million/acre against the DPAC’s average price of Rs. 2-5 million/acre; • the site previously considered for acquisition was the barren (about half a km away from the current site) that was changed to the current site due to political influence; • The current site located on the road is prone to flood water that is managed through 8-9 flood regulating causeways, at least 4 of which will submerge under the GS. The fenced GS will have its level raised above the natural soil level which will result in seriously severing the remaining land around the GS, destroying the farm yield, and structures, etc., and • There are at least 3-4 alternate most appropriate sites (on either side the road, which NTDC must explore/acquire for the GS. 3.2 ADB and NTDC’s meeting with complaint on April 2019 After which NTDC and ADB visited the project site on April 16 to 18 2019 to analyze the actual situation and proposed findings of the field visit and action plan to GM PMU to analyze possibility of alternative site and in the meanwhile proposed change in schedule of planned activities with immediate activation of GRM committee GRM committee is attached as annexure 2. 3.3 NTDC’s letter to ADB on findings of alternate site for GS. NTDC conducted fresh survey during the month of May 2019, to analyze the technically feasibility of alternate site and decided that no government land measuring 200-225 acres is available along the sheikham-lahore road and land 1km away from main road is equally fertile and same nature as existing. NTDC letter to ADB on May 5, 2019 is attached in annexure 4. 3.4 ADB’s OSFP meeting with complaint on July 2019 Later on in July 8, 2019 ADB OSPF team visited the LNGS site and met with complaints to assess the accuracy or difference of information provided by complainants. • NTDC mentioned that the selected Lahore North Grid Station site (LNGS site) has been selected based on a review of several alternative sites and determined to be the best site. The site requirements are based on the complexity of the project- there will be 500kV, 220 kV, and 132 kV stations as well as a warehouse/housing for the grid operating staff.
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