Initial Environmental Examination October 2012 MFF 0021-PAK: Power Distribution Enhancement Investment Program – Proposed Tranche 3 Prepared by Peshawar Electric Supply Company for the Asian Development Bank. Draft Initial Environmental Examination (IEE) Report Project Number: P8 to P12 {October 2012} PAK: Power Distribution Enhancement MFF Project, ADB MFF Tranche - 3 Power Transformer‟s Extension Subprojects (Dalazak, Karak, Tank, Hussai and Timergara) Prepared by: Peshawar Electric Supply Company for the Asian Development Bank (ADB) The initial environmental examination 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. Power Distribution Enhancement Project Tranche – 3, Peshawar Electric Supply Company Power Transformer Extension Subprojects Initial Environmental Examination TABLE OF CONTENTS 1. INTRODUCTION 1 1.1 Overview 1 Requirements for environmental assessment 5 1.2 Scope of the IEE Study and Personnel 6 1.3 Policy and Statutory Requirements in Pakistan 7 National Environmental Quality Standards 8 Solid waste management 8 1.4 Structure of Report 8 2. DESCRIPTION OF THE PROJECT 10 2.1 Type of Project 10 2.2 Categorisation of the Project 10 2.3 Need for the Project 11 2.4 Location and Scale of Project 11 2.5 PESCO Subprojects 13 3. DESCRIPTION OF THE ENVIRONMENT 15 3.1 Sub-project Areas 15 3.2 Physical Resources 15 3.3 Climate and Hydrology 15 3.4 Groundwater and Water Supply 16 3.5 Surface Water 16 3.6 Air Quality 17 3.7 Noise and Vibration: 18 3.8 Ecological Resources 18 3.9 Economic Development 18 3.10 Social and Cultural Resources 19 4. SCREENING POTENTIAL ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES 22 4.1 Project Location Impact Assessment and Mitigation 22 4.2 General Approach to Mitigation 23 4.3 Prevention of ground contamination 23 4.4 Cultural Heritage, Temples, Religious Sites, Social Infrastructure 25 4.5 Potential Environmental Impacts in Construction 25 Cut and Fill and Waste Disposal 26 i Power Distribution Enhancement Project Tranche – 3, Peshawar Electric Supply Company Power Transformer Extension Subprojects Initial Environmental Examination 4.6 Trees, Ecology and Protected Areas 26 4.7 Hydrology, Sedimentation, Soil Erosion 27 4.8 Air Pollution from Rock Crushing, Cut, Fill, & Asphalt 27 4.9 Noise, Vibration and Blasting 28 4.10 Sanitation, Solid Waste Disposal, Communicable Diseases 28 4.11 Potential Environmental Impacts in the Operational 31 Pollution from Oily Run-off, Fuel Spills and Dangerous Goods 31 4.12 Enhancement 32 5. INSTITUTIONAL REQUIREMENTS & ENVIRONMENTAL MANAGEMENT PLAN 33 6. PUBLIC CONSULTATION AND INFORMATION DISCLOSURE 50 6.1 Approach to Public Consultation 50 6.2 Grievance Redress Mechanism 50 6.3 Redress Committee 52 7. FINDINGS RECOMMENDATIONS AND CONCLUSIONS 54 7.1 Findings and Recommendations 54 7.2 Conclusion 55 Figures and Maps Figure 1.1 Pakistan EIA Process Figure 1.2 Jurisdiction map of PESCO Figure 6.1 Grievance Redress Mechanism Appendices Appendix I Project Location Map Appendix II Monitoring Plan (matrix) Appendix III Institutional Arrangements for Monitoring Plan Appendix IV Summary of Public Consultation ii Power Distribution Enhancement Project Tranche – 3, Peshawar Electric Supply Company Power Transformer Extension Subprojects Initial Environmental Examination ABBREVIATIONS ADB Asian Development Bank CSP Country Strategy Program DGS distribution grid substation DISCO independent electricity distribution company DX distribution transformer DXL distribution network transmission line DIZ Direct Impact Zone EA Environmental Assessment EARF Environmental Assessment Review Framework EIA Environmental Impact Assessment EMP Environmental Management Plan GDP Gross Domestic Product GoP Government of Pakistan GIS Gas Insulated Switchgear IEE Initial Environmental Evaluation ITC Increase transformer capacity - augmentation PESCO Peshawar Electricity Supply Company Limited Leq equivalent sound pressure level MPL maximum permissible level NEQS National Environmental Quality Standards NGO Non-Governmental Organization PC public consultation PEPA Pakistan Environmental Protection Agency PEPAct Pakistan Environment Protection AcT 2997 (as regulated) PPMS Project Performance Monitoring System PWD Public Works Department REA Rapid Environmental Assessment REI review of environmental implications SEA Sectoral Environmental Assessment SEL instantaneous sound pressure level SIA Social Impact Assessment S-P sub-project SR Sensitive Receiver TOR Terms of Reference Rupee, PKR Unit of Pakistan currency, $US approx. Rs. 95 iii Power Distribution Enhancement Project Tranche – 3, Peshawar Electric Supply Company Power Transformer Extension Subprojects Initial Environmental Examination 1. INTRODUCTION 1.1 Overview 1. This document is the Initial Environmental Examination for the Tranche 3 Extension sub-projects of Peshawar Electricity Supply Company (PESCO). This IEE was prepared under Asian Development Bank (ADB) Power Distribution and Enhancement Multi-tranche Finance Facility (PDEMFF). 2. Government of the Islamic Republic 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 and the PDEMFF loan is proposed to be approved by ADB in 2008. The PDEMFF activities include extension (additional transformers) and augmentation (replacement of transformers with higher capacity) distribution line extensions, new and replacement distribution lines, additional sub-stations, 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 tranches. Page 1 of 71 Power Distribution Enhancement Project Tranche – 3, Peshawar Electric Supply Company Power Transformer Extension Subprojects Initial Environmental Examination 3. This IEE presents the results and conclusions of environmental assessment for the five (05) extension sub-projects proposed by PESCO and are submitted by Pakistan Electric Power Company (PEPCO) on behalf of PESCO. PEPCO has Page 2 of 71 Power Distribution Enhancement Project Tranche – 3, Peshawar Electric Supply Company Power Transformer Extension Subprojects Initial Environmental Examination 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, monitoring implementation activities; that includes submission of environmental assessments for all sub-projects in all tranches of the PDEMFF under ADB operating procedures. An IEE has been carried out to fulfill the requirements of ADB Safeguards Policy Statement, 200912. This IEE study report is used to complete the Initial Environmental Examination (IEE) for disclosure by ADB if necessary. 1 Initial project classification was carried out in 2006 and the Category is B. Most of the construction impacts will take place with only local impacts and there are no potential significant environmental impacts associated with the T3(tranche 3) sub- project construction. Initial environmental reconnaissance and REA carried out by consultants under ADB guidelines in May 2007 indicated that all the T2 sub-projects will be Category B. 2 ADB Safeguards policy Statement, 2009 Page 3 of 71 Power Distribution Enhancement Project Tranche – 3, Peshawar Electric Supply Company Power Transformer Extension Subprojects Initial Environmental Examination Page 4 of 71 Power Distribution Enhancement Project Tranche – 3, Peshawar Electric Supply Company Power Transformer Extension Subprojects Initial Environmental Examination Requirements for environmental assessment 4. Under the MFF loan procedures of ADB, implementation of safeguards is to be achieved by environmental assessment of every sub-project to be undertaken following ADB Safeguards Policy Statement, 2009. Power distribution enhancement and development type projects, that are limited to expansion of already developed facilities, have typically been classified as Category B. Each sub-project as been subject to environmental assessment after categorisation and the focus was on the most significant issues. 5. Under GoP regulations, the Pakistan Environmental Protection Agency Review of Initial Environmental Examination and Environmental Impact Assessment Regulations (2000) categorizes development projects into two schedules according to their potential environmental impact. The proponents of projects that have reasonably foreseeable impacts are required to submit an IEE for their respective projects (Schedule I). 6. Projects that have more adverse environmental impact (Schedule II) are required to submit