Social Monitoring Report Social Monitoring Report (January to June 2020) Project Number: 50059-002 Loan Number: 3542-NEP June 2020 Nepal: Power Transmission and Distribution Efficiency Enhancement Project 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. Your attention is directed to the “terms of use” section of this website. In preparing country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic areas 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. Social Monitoring Report (January 2020 to June 2020) Loan 3542 (NEP) Power Transmission and Distribution Efficiency Enhancement Project (Project Number: 50059-002) Submitted to: Asian Development Bank Nepal Resident Mission Metro Park, Kathmandu Submitted by: Nepal Electricity Authority Project Management Directorate Matatirtha, Kathmandu Prepared by: Project Supervision Consultant Power Grid Corporation of India Ltd. in association with PricewaterhouseCoopers Private Limited and M/s Jade Consult Pvt. Ltd. CURRENCY EQUIVALENTS (As of 30 June 2020) Currency unit – Nepalese Rupee (NRS) NRS1.00 = $0.008262 US$1.00 = NPR121.040000 NOTES: The fiscal year (FY) of the Government of Nepal and its agencies ends on 16 July. FY before a calendar year denotes the year in which the fiscal year ends, e.g., FY 2018 ends on 16 July 2018. In this report, "$" refers to US dollars. ACRONYMS ADB - Asian Development Bank AP - Affected person CDC - Compensation Determination Committee CDO - Chief District Officer DPs - Di splaced person DMD - Deputy Managing Director EA - Executive Agency ESSD - Environmental and Social Studies Department EUC - Electricity Users Cooperative FGL - Finish Ground Level GoN - Government of Nepal GRC - Grievance Redress Committee GESI - Gender Equality and Social Inclusion GIS - Gas Insulated Switchgear Substation Ha - Hectare HHs - Households IR - Involuntary Resettlement JFPR - Japan Fund for Poverty Reduction kV - kilo Volt NEA - Nepal Electricity Authority MVA - Mega Volt Ampere PPTA - Project Preparatory Technical Assistant PTDEEP - Power Transmission and Distribution Efficiency Enhancement Project PMD - Project management directorate PSC - Project Supervision Consultant RoW - Right of Way RP - Resettlement Plan SPS - ADB Safeguard Policy Statement (2009) SEP - Stakeholder Engagement Plan TA - Technical Assistance TABLE OF CONTENTS CURRENCY EQUIVALENTS ..................................................................................................................................... III ACRONYMS ........................................................................................................................................................... IV TABLE OF CONTENTS .............................................................................................................................................. V LIST OF TABLES ..................................................................................................................................................... VI LIST OF APPENDICES ............................................................................................................................................. VI EXECUTIVE SUMMARY ............................................................................................................................................ I 1. INTRODUCTION ............................................................................................................................................ 5 1.1 BACKGROUND ..................................................................................................................................................... 5 1.2 BRIEF PROJECT DESCRIPTION .................................................................................................................................. 5 2 PROJECT STATUS........................................................................................................................................... 7 2.1 STATUS OF PROJECT IMPLEMENTATION ..................................................................................................................... 7 2.2 STATUS OF PROJECT MONITORING ACTIVITIES ............................................................................................................ 9 2.2.1. Monitoring Parameters/Indicators and Methods .............................................................................. 10 2.2.2. Semi-annual Monitoring Results ........................................................................................................ 10 2.2.4. Land Acquisition and Compensation Distribution ............................................................................ 12 2.2.5. Compensation Distribution for Structures ......................................................................................... 13 2.2.6. Additional Assistance to Project Affected Vulnerable Households ............................................... 14 2.2.7. Livelihood Restoration ......................................................................................................................... 15 2.3 IMPLEMENTATION SCHEDULE ................................................................................................................................ 17 3 INSTITUTIONAL ARRANGEMENT FOR MONITORING ................................................................................... 65 4 COMPLIANCE WITH SOCIAL SAFEGUARD LEGAL AND POLICY REQUIREMENT ............................................. 65 5 GRIEVANCE REDRESSAL MECHANISM AND ITS IMPLEMENTATION ............................................................. 70 5.1 RECEIVED GRIEVANCES/SUGGESTIONS AND STATUS .................................................................................................. 71 6 CONSULTATION, PARTICIPATION AND DISCLOSURE ................................................................................... 74 6.1 CONSULTATIONS ................................................................................................................................................ 75 7 KEY ISSUES AND RECOMMENDED CORRECTIVE MEASURES ........................................................................ 76 LIST OF TABLES TABLE 1-1: DETAILS OF PROJECT AND ITS COMPONENTS .................................................................................. 6 TABLE 2-1: PHYSICAL PROGRESS OF THE SUB-PROJECTS ................................................................................. 7 TABLE 2-2: SUMMARY OF PERFORMANCE ON SOCIAL SAFEGUARDS .................................................................. 11 TABLE 2-3: STATUS ON COMPENSATION DISTRIBUTION FOR ACQUIRED LAND ..................................................... 13 TABLE 2-4: STATUS ON COMPENSATION DISTRIBUTION FOR AFFECTED STRUCTURES ....................................... 14 TABLE 2-5: VULNERABLE HOUSEHOLDS .......................................................................................................... 14 TABLE 2-6: ADDITIONAL ASSISTANCE TO VULNERABLE GROUPS PROPOSED IN RP ............................................ 15 TABLE 2-7: PROGRESS ON GESI ACTIVITIES ................................................... 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TABLE 2-8 IMPLEMENTATION SCHEDULE ......................................................................................................... 17 TABLE 4-1 SAFEGUARDS RELATED REQUIREMENTS ........................................................................................ 65 TABLE 5-1 GRIEVANCE MATRIX ...................................................................................................................... 73 TABLE 6-1 DISCLOSURE PLAN ........................................................................................................................ 74 TABLE 7-1 CORRECTIVE MEASURES AND ISSUES ............................................................................................ 76 LIST OF APPENDICES ANNEX 1 COMPONENT WISE LOCATION ANNEX 2 STATUS OF COMPLIANCE WITH LOAN COVENANTS ANNEX 3 THE GRC FOMATION LETTER OF SUBSTATIONS ANNEX 4 GRIEVANCE REDRESSAL COMMITTEE (GRC) MATRIX AND SAMPLE LOCAL CONCERNS TO ANNEX 5 PHOTOGRAPHS EXECUTIVE SUMMARY 1. Asian Development Bank (ADB) approved Power Transmission and Distribution Efficiency Enhancement Project (PTDEEP) to enhance the transmission and distribution system and improve reliability and quality of electric supply in the Kathmandu valley. This project is loan funded project of ADB and the project commissioning date is June 2022. Nepal Electricity Authority (NEA) will serve as the Executing Agency (EA) and will implement all the activities under the Asian Development Bank loan through its Project Management Directorate (PMD). The project will contribute to Nepal’s distribution system strengthening in the Kathmandu Valley and other major urban centers by scaling up distribution system efficiency and reliability, facilitating adequate power supply to meet ever-growing energy needs of the valley, increasing service reliability of the utility and building capacity for the overall distribution system development. 2. The main objectives of the PTDEEP is to enhance the distribution capacity and improve reliability and quality of electricity supply in the