Initial Environmental Examination Project Number: 50174-001 November 2017 Zorlu Solar Power Project (Pakistan) Prepared by Renewable Resources (Private) Limited. The 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 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. ORIGINAL INITIAL ENVIRONMENTAL EXAMINATION (IEE) OF 100 MW SOLAR PV POWER PROJECT IN BAHAWALPUR PUNJAB- PAKISTAN PROJECT SPONSORS: ZORLU SOLAR PAKISTAN (PRIVATE) LIMITED PROJECT CONSULTANTS: RENEWABLE RESOURCES (PVT.) LTD PAKISTAN Disclaimer Notice This report has been prepared for the benefit of (Zorlu Solar Pakistan (Pvt.) Ltd) (the “Client”), and may not be relied upon or disclosed to any other person for any purpose, other than as stated below, without the Client’s prior written consent in each specific case. The information contained in this report is intended for purposes of seeking an approval from the Environment Protection Agency in accordance with the requirements of the Pakistan Environment Protection Act, 1997, the Punjab Environment Protection Act 2012, and Punjab Environmental Protection Agency (Review of IEE and EIA) Regulations, 2016, and may be used by the Client for such other purpose as may be necessary for the development and implementation of the Project. Copyright Notice The report and its content remain the sole property of Renewable Resources (Pvt.) Ltd (RE2) and may be used by the Client for the above-stated purpose. None of the information contained and provided in the report may be modified, reproduced, distributed, sold, published, broadcasted, or circulated, in whole or in part, in any form or by any means, electronic or print, including photocopy, or the use of any information storage and retrieval system, without the express written permission of RE2. Further, RE2 shall not be responsible for any kind of modification of this report and any text, photograph or illustrations which are extracted from this report. Except with the prior written consent of RE2, this report is not to be referred to or quoted in whole or in part, in any prospectus, registration statement, offering circular, public filing, loan or other agreement or document. Prepared in October, 2017 ENEWABLE RESOURCES PRIVATE LIMITED (RE2) Islamabad Office Karachi Office No. 1002, 10th Floor, Green Trust Tower 86/1 khayaban-e-Bahria, Jinnah Avenue, Blue Area, Phase V, DHA Islamabad, Pakistan Karachi, Pakistan Tel:+92-51-8358591 Tel: +92-21-35347122 Fax: +92-8358592 Fax: +92-21-35347123 www.renewableresources.com.pk Document Title: Consultant Name: Document No Date of Approval Renewable Resources (Pvt.) Ltd RE2-131-202-002 October,2017 IEE of 100 MW Solar PV Power Project Project Sponsor: Document Issue Page Number in Bahawalpur Punjab - Pakistan Zorlu Solar Pakistan (Pvt.) Ltd 02 2 APPROVAL SHEET TITLE : Initial Environmental Examination (IEE) of 100MW Solar PV Power Project in Bahawalpur, Punjab- Pakistan DOCUMENT NUMBER : RE2-131-202-002 Issue: 02 CLASSIFICATION : UN CLASSIFIED SYNOPSIS : This document is a report on Initial Environmental Examination (IEE) of 100MW Solar PV Power Project in Bahawalpur, Punjab, Pakistan. Project is owned by Zorlu Solar Pakistan (Pvt.) Ltd (ZSPPL). The report is prepared by Renewable Resources Pvt. Ltd. PREPARED BY : (Irfan Parvez) Environment Expert Renewable Resources (Pvt) Ltd [email protected] Reviewed BY : ____________________________ (Salman Nazir Raja) Head of Projects Renewable Resources (Pvt) Ltd [email protected] Document Title: Consultant Name: Document No Date of Approval Renewable Resources (Pvt.) Ltd RE2-131-202-002 October,2017 IEE of 100 MW Solar PV Power Project Project Sponsor: Document Issue Page Number in Bahawalpur Punjab - Pakistan Zorlu Solar Pakistan (Pvt.) Ltd 02 3 APPROVED BY : (Muhammad Ammad Riaz) Chief Technical Officer Renewable Resources (Pvt) Ltd [email protected] : (Irfan Afzal Mirza) CEO Renewable Resources (Pvt) Ltd [email protected] DATE : October, 2017 Document Title: Consultant Name: Document No Date of Approval Renewable Resources (Pvt.) Ltd RE2-131-202-002 October,2017 IEE of 100 MW Solar PV Power Project Project Sponsor: Document Issue Page Number in Bahawalpur Punjab - Pakistan Zorlu Solar Pakistan (Pvt.) Ltd 02 4 TABLE OF CONTENTS TABLE OF CONTENTS __________________________________________________________ 5 LIST OF FIGURES _____________________________________________________________ 11 LIST OF TABLES ______________________________________________________________ 12 LIST OF ABBREVIATIONS ______________________________________________________ 13 COMPANY CONTACT INFORMATION _____________________________________________ 16 CONSULTANT CONTACT INFORMATION __________________________________________ 16 EXECUTIVE SUMMARY ________________________________________________________ 17 1 INTRODUCTION AND PURPOSE OF STUDY ____________________________________ 23 1.1 PROJECT PROPONENT _______________________________________________________ 23 1.2 PROJECT BACKGROUND AND JUSTIFICATION _____________________________________ 23 2 PROSPECTS OF SOLAR ENERGY IN PAKISTAN __________________________________ 25 2.1 PROJECT OVERVIEW AND OBJECTIVES __________________________________________ 27 2.2 NEED AND OBJECTIVES OF IEE STUDY ___________________________________________ 29 2.3 APPROACH AND METHODOLOGY ______________________________________________ 30 2.3.1 Scoping _______________________________________________________________________ 31 2.3.2 Impact Assessment ______________________________________________________________ 32 2.3.3 Documentation _________________________________________________________________ 32 2.4 METHOD FOR EVALUATING IMPACT ____________________________________________ 33 3 LEGISLATIVE REQUIREMENTS OF IEE _________________________________________ 35 3.1 NATIONAL ENVIRONMENTAL LAWS ____________________________________________ 35 3.2 POLICY GUIDELINES (www.epa.gov.pk) _________________________________________ 35 3.2.1 National Conservation strategy ____________________________________________________ 35 3.2.2 The Biodiversity Action Plan _______________________________________________________ 37 3.3 ENVIRONMENT INSTITUTIONS AND ADMINISTRATION _____________________________ 37 3.4 LAWS, REGULATIONS AND GUIDELINES _________________________________________ 38 3.5 PAKISTAN ENVIRONMENTAL PROTECTION ACT, 1997 ______________________________ 38 3.6 PAKISTAN ENVIRONMENT PROTECTION AGENCY REVIEW OF IEE AND EIA REGULATION, 2000 38 Document Title: Consultant Name: Document No Date of Approval Renewable Resources (Pvt.) Ltd RE2-131-202-002 October,2017 IEE of 100 MW Solar PV Power Project Project Sponsor: Document Issue Page Number in Bahawalpur Punjab - Pakistan Zorlu Solar Pakistan (Pvt.) Ltd 02 5 3.7 PUNJAB ENVIRONMENT PROTECTION AGENCY REVIEW OF IEE AND EIA REGULATION, 201640 3.8 POLICY FOR DEVELOPMENT OF POWER GENERATION PROJECTS, 2006 ________________ 40 3.9 PROJECT DEVELOPMENT IN TERMS OF POLICY FRAMEWORK ________________________ 41 3.9.1 Letter Of Intent (LOI) ____________________________________________________________ 41 3.9.2 Acquisition of Land ______________________________________________________________ 41 3.9.3 Submission of Feasibility Study ____________________________________________________ 42 3.9.4 Generation License ______________________________________________________________ 42 3.9.5 Tariff Determination _____________________________________________________________ 42 3.9.6 Letter of Support (LOS) ___________________________________________________________ 42 3.9.7 Energy Purchase Agreement (EPA) __________________________________________________ 42 3.9.8 Implementation Agreement (IA) ___________________________________________________ 43 3.9.9 Financial Close _________________________________________________________________ 43 3.10 NATIONAL AND INTERNATIONAL ENVIRONMENTAL STANDARDS ____________________ 43 3.10.1 National Environmental Quality Standards, 2005 ______________________________________ 43 3.10.2 National Environmental Policy, 2005 ________________________________________________ 44 3.10.3 Land Acquisition Act, 1984 ________________________________________________________ 45 3.10.4 Telegraph Act, 1985 _____________________________________________________________ 45 3.10.5 The Punjab Wildlife (Protection, Preservation, Conservation and Management Act), 1974 ______ 46 3.10.6 Forest Act, 1927 ________________________________________________________________ 46 3.10.7 Canal and Drainage Act, 1873 _____________________________________________________ 46 3.10.8 Antiquity Act, 1975 ______________________________________________________________ 47 3.10.9 Mines, Oil Fields and Mineral Development Act, 1948 __________________________________ 47 3.10.10 Factories Act, 1934 ______________________________________________________________ 47 3.10.11 Pakistan Explosive Act, 1884 ______________________________________________________ 48 3.10.12 Employment of Child Act, 1991 ____________________________________________________ 48 3.10.13 Civil Aviation Rules, 1994 _________________________________________________________