Monitoring, Inspection, Milestone Certification and Design Review (MIMDR) of USAID/Pakistan Energy Office Projects ANNUAL PROGRESS REPORT (FY2019) OCTOBER 1, 2018-SEPTEMBER 25, 2019 DISCLAIMER THE CONTENTS OF THIS REPORT ARE THE SOLE RESPONSIBILITY OF A.A. ASSOCIATES AND DO NOT NECESSARILY REFLECT THE VIEWS OF USAID OR THE UNITED STATES GOVERNMENT. Monitoring, Inspection, Milestone Certification and Design Review (MIMDR) of USAID/Pakistan Energy Office Projects ANNUAL PROGRESS REPORT (FY2019) OCTOBER 1, 2018-SEPTEMBER 25, 2019 Submission Date: September 27, 2019 MIMDR Project Office 3rd Floor, Waheed Plaza, 52 Western Half, Jinnah Avenue, Blue Area Islamabad. Tel: +92 (51) 2605000-2, Fax: +92 (51) 2605003 Email: [email protected] This publication was made possible through support of the American people provided by the U.S. Agency for International Development (USAID). The opinions expressed herein are those of AA Associates and do not necessarily reflect the views of USAID or the United States Government. MIMDR | ANNUAL PROGRESS REPORT | OCTOBER 2018 – SEPTEMBER 2019 | ii TABLE OF CONTENTS ACRONYMS…………………………………………………………………………………………………………..IV SECTION 1: EXECUTIVE SUMMARY ....................................................................... 1 SECTION 2: FINANCIAL SUMMARY ....................................................................... 3 SECTION 3: PROJECT WISE PROGRESS .................................................................. 4 Project 1: Mangla Dam Rehabilitation Project ................................................................ 4 Project 2: Jhimpir 1 Wind Power Transmission System .................................................. 5 Project 3: Golen-Gol Hydropower Project ...................................................................... 6 Project 4: Tarbela Dam Repair & Maintenance Project .................................................. 7 Project 5: Kaitu-Weir Hydropower Project...................................................................... 8 Project 6: Jhimpir 2 Wind Power Transmission System ................................................ 10 Project 7: Power Transmission System for Patrind Hydropower Activity...................... 11 SECTION 4: ENVIRONMENTAL COMPLIANCE....................................................... 13 SECTION 5: MONITORING AND EVALUATION ..................................................... 15 SECTION 6: GENDER CONSIDERATIONS .............................................................. 16 SECTION 7: MIMDR PROJECT TEAM.................................................................... 17 ANNEXURE A: FY2019 PICTORIAL ....................................................................... 20 ANNEXURE B: REPORTS AND DELIVERABLES....................................................... 29 ANNEXURE C: QUESTIONNAIRE ON GENDER CONSIDERATIONS .......................... 42 MIMDR | ANNUAL PROGRESS REPORT | OCTOBER 2018 – SEPTEMBER 2019 | iii ACRONYMS APA Assistant Political Agent BoP Balance of Plant BOQ Bill of Quantities CBs Circuit Breakers CE Chief Engineer CT Current Transformer CBM Capacity Building Measures CLC Certificate of Line item Completion CMC Certificate of Milestone Completion COP Chief of Party CPPA Central Power Purchasing Agency CR Cost Reimbursement CRA Cost Reasonableness Analysis DEC Development Experience Clearinghouse DG Director General DO Development Objective E&M Electrical and Mechanical EAD Economics Affairs Division ECNEC Executive Committee of the National Economic Council EDF Environmental Documentation Form EHV Extra High Voltage EMC Environmental Monitoring Cell EMMP Environmental Mitigation and Monitoring Plan EPA Environmental Protection Agency FAR Fixed Amount Reimbursement FY Fiscal Year G2G Government to Government GE General Electric GGHP Golen Gol Hydropower Project GLOP Glacial Late Outburst Flood GOP Government of Pakistan HMC Heavy Mechanical Complex IR Intermediate Results MIMDR | ANNUAL PROGRESS REPORT | OCTOBER 2018 – SEPTEMBER 2019 | iv KP Khyber Pakhtunkhwa KTDP Kurram Tangi Dam Project LRT Load Rejection Tests LC Letter of Credit kV kilo Volt M&E Monitoring and Evaluation MIMDR Monitoring, Inspection, Milestone Certification and Design Review MMP Mott MacDonald Pakistan MPR Monthly Progress Report MSF Mission Strategic Framework MVA Mega Volt Ampere MW Mega Watt NDT Non Destructive Testing NEPRA National Electric Power Regulatory Authority NESPAK National Engineering Services Pakistan NOC No Objection Certificate NTDC National Transmission and Dispatch Company ODWF Oil Directed Water Forced O/E Office of Energy PCB Polychlorinated Biphenyls PD Project Director PIL Project Implementation Letter PKR Pakistani Rupee QPR Quarterly Progress Report RAP Resettlement Action Plan REA Rapid Environmental Analysis RFP Request for Proposal RRT Reliability Run Test ROW Right of Way SBP State Bank of Pakistan SOW Scope of Work TA/DA Travelling Allowance / Daily Allowance TDR Tarbela Dam Repair and Maintenance Project TO Task Order TOCOR Task Order Contracting Officer Representative UNDP United Nations Development Program MIMDR | ANNUAL PROGRESS REPORT | OCTOBER 2018 – SEPTEMBER 2019 | v US United States USG United States Government USAID United States Agency for International Development WeBOC Web-based One Customs WPPs Wind Power Plants MIMDR | ANNUAL PROGRESS REPORT | OCTOBER 2018 – SEPTEMBER 2019 | vi SECTION 1 EXECUTIVE SUMMARY The Monitoring, Inspection, Milestone Certification and Design Review (MIMDR) Project supports USAID Pakistan Office of Energy (O/ENR) as Architect and Engineering contractor, ensuring adherence to funding covenants for a US $339 million G2G Project portfolio. This report provides an overview of activities conducted and supervised by MIMDR for effective and efficient achievement of G2G project objectives, during the period October 1, 2018-September 25, 2019 (Fiscal Year 2019). MONITORING, INSPECTION AND MILESTONE CERTIFICATION During Fiscal Year (FY) 2019, MIMDR certified beneficiary funding request of US $41.37 million for the following G2G projects: Mangla Dam Rehabilitation Project (Mangla Project) USAID funding of US $150 million is committed for rehabilitation of the Mangla power station allowing it to generate for another 40 years. MIMDR issued six CMCs with a total certified amount of US $17.77 million and conducted four site visits this year. Jhimpir 1 Wind Power Transmission System (Jhimpir 1 Project) USAID funding of US $43 million enabled 15 Wind Power Plants (WPPs) to begin delivering 780 MW of clean, sustainable energy to the National Grid. Implemented by state owned National Transmission and Despatch Company (NTDC), the project symbolizes public-private partnership in the clean energy domain. MIMDR issued 26 CLCs with a total certified amount of US $16.02 million and visited the project thrice. MIMDR issued two verification of line item completion certificates for verification of NTDC cost share contribution amounting to US $2.26 million. Golen Gol Hydropower Project (Golen Gol Project) This year, the 108 MW Golen Gol Project achieved physical completion. USAID funded 11% of the Project cost, providing US $35.62 million for procurement, installation, testing, and commissioning of major electrical and mechanical equipment. MIMDR issued 12 Certificate of Milestone Completion(s) (CMC) for a total certified amount of US $4.84 million and conducted six monitoring and inspection visits to the project site. Tarbela Dam Repair and Maintenance Phase-II Project (Tarbela Project) USAID grant of US $25 million for the Tarbela Dam Repair and Maintenance Project will restore 20 MW of generation capacity. MIMDR issued one Certificates of Line Item Completion (CLC) with a total certified amount of US $2.26 million and conducted one site visit in FY2019. Kurram Tangi Dam Project, Stage 1-Kaitu Weir and Affiliated Power and Irrigation Component (Kaitu Weir Project) USAID is providing US $81 million for construction of Stage 1 of Kurram Tangi Dam Project that includes Kaitu Weir and affiliated power and irrigation components. MIMDR issued one CMC with a total certified amount of US $0.48 million and conducted 10 site visits in FY2019. MIMDR | ANNUAL PROGRESS REPORT | OCTOBER 2018 – SEPTEMBER 2019 | 1 PROJECT DEVELOPMENT SUPPORT MIMDR project development support this year paved the way for prospective USAID funding of US $83.48 million. Support activities in addition to enhancing Implementing Partner-USAID coordination include design review, structuring milestone for Project Implementation Letter (PIL), conducting technical and financial analysis and carrying out Due Diligence and Cost Reasonableness Analysis (CRA). MIMDR provided the following project development support this year: Jhimpir 2 Wind Power Transmission System (Jhimpir 2 Project): USAID prospective contribution of US $83.48 million will develop the transmission line and substations at Jhimpir 2 to evacuate 1,224 MW from Wind Power Producers (WPPs). MIMDR worked closely with NTDC to develop project milestones and estimated costs, providing on the anticipated Fixed Amount Reimbursement (FAR) mechanism. These activities are groundwork for the CRA, assigned to MIMDR in September 2018. MIMDR submitted its final CRA draft to USAID on December 5, 2018. MIMDR also finalized the Rapid Environmental Analysis (REA) solicitation and submitted M/s Halcrow Pakistan (Pvt) Ltd as the shortlisted bidder as communicated by USAID. TECHNICAL SUPPORT An important part of MIMDR’s work is to provide environmental monitoring and capacity building for USAID Pakistan