Environmental Safeguard Monitoring Report #4th Semi-Annual Report June 2018 Project No. 46390-003 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 Safeguard 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 área. 1 | P a g e The Republic of the Union of Myanmar Ministry of Electricity and Energy Electricity Supply Enterprise (ESE) Power Distribution Improvement Project Loan No: 3084-MYA (SF) Semi-annually Safeguard Monitoring Report January - June 2018 1 | P a g e Contents Scope ......................................................................................................... 3 Introduction and Project Characteristics...................................... 3 1.1 Background............................................................................................................................................ 3 1.2 Objectives of the Project................................................................................................................... 3 1.2.1 Impact and Outcome ............................................................................................ 3 1.2.2 Outputs .............................................................................................................. 4-4 1.3 Environmental, Involuntary Resettlement and Indigenous People Categorization 4 .. Eviroetal …………………………………………………………………………………………………… .. Ivolutary Resettleet…………………………………………………………………………………… 1.3.3 Indigenous People………………………………………………………………………………………………. 1.4 Project Working Areas ...................................................................................................................... 4 1.4.1 Magway Area ..................................................................................................... 5-5 1.4.2 Sagain Area ........................................................................................................... 5 Update Safeguard Covenant Status ................................................. 6 2.1 Magway Area - ESE .........................................................................................................................6-6 2.2 Sagain Area - ESE.............................................................................................................................8-7 ESE Status of Compliance .................................................................... 7 3.1 Safeguards Loan/ Grant Covenants ............................................................................................. 7 3.2 Environmental Management Planning...................................................................................8-9 3.3 Environmental Management(Rehabilitation/installation and operation ......... 10-12 Conclusions about Safeguards ................................................. 14-13 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 January to June 2018. 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 sustainable electricity to the selected townships and districts. 3 | P a g e 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. In the following paragraphs, ESE offers a brief of the different works performed and in progress during the second half of 2017. 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. Currently, works in progress are concerning to the rehabilitation of six substations. The rest of works are concluded from last year. Specific jobs in progress at date are: • 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 location of substations in which the Jobs are being executed are the shown in the table no 1, shown below: Table No. 1 Works Location Location Substation No Township District 1 66/11 KV 10 MVA ( GCB ) SeikPhyu SeikPhyu Magway 2 66/11 KV 10 MVA ( GCB ) No (2) Pakokku Pakokku 3 66/11 KV 10 MVA ( GCB ) Pakhanegyi Pakokku Pakokku 4 33/11 KV 10 MVA ( GCB ) Minbu Minbu Minbu 5 33/11 KV 10 MVA ( GCB ) TanaungTaw Minbu Minbu 6 33/11 KV 10 MVA ( GCB ) Salin Salin Minbu 1.4.2 Sagain 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 works location is showed in table number 2 below. 5 | P a g e Table No. 2 Works Location Location No Substation Township District 1 33/11 kV, 10 MVA Padamyar (Sagaing) Sagaing Sagaing Substation 2 33/11 kV, 10 MVA Myin Mu Substation Myin Mu Sagaing 3 33/11 kV, 3 MVA Pagantu Substation (Only Sadaung Sagaing 33 kV Switch bay) 4 33/11 kV, 10 MVA AyartawSubstation Ayartaw Monywa 5 33/11 kV, 10 MVA Chaung U Substation Chaung U Monywa 6 33/11 kV, 10 MVA TazeSubstation Taze Shwebo 7 33/11 kV, 10 MVA Ye U Substation Ye U Shwebo 8 33/11 kV, 10 MVA Khin Oo Substation Khin Oo Shwebo 9 33/11 kV, 10 MVA WatletSubstation WetLet Shwebo 10 33/11 kV, 10 MVA KhanbaluSubstation Khanbalu Khanbalu 11 33/11 kV, 10 MVA KawlinSubstation Kawlin Kathar 12 33/11 kV, 10 MVA KatharSubstation Kathar Kathar 13 33/11 kV, 10 MVA PinlebuSubstation Pinlebu Kathar Update Safeguard Covenant Status Project Safeguards are