Environment Report 2011 - Lalpir Powerlalpir.com/env.pdf · 2014-03-27 · ENVIRONMENT REPORT 2011 Page44 Executive Summary Nishat Group owns two power plants at Lal Pir (Dis tt:

Environment Report 2011

Lal Pir Thermal Power Plant

ENVIRONMENT REPORT 2011

Page 222

Nishat Group 3Executive Summary 4

About Report 5Chairman’s Message 6

Statement of Business Leader 7Corporate Profile 8

Environmental Commitment 16

EHS Policy 17

Environmental Management 18

EHS Initiatives 27

Emergency preparedness & response 30

Stakeholders engagement / Feedback 33

Financial policies 34

Internal Auditing 36

Environmental Performance 37

2011 Milestones 38

Our Results 45Safety Statistics

46

Social Responsibility Program 51

Feedback Form 57

Contents


Page 333

NISHAT GROUP

Nishat Group is one of theleading and mostdiversified business groupsin South East Asia withfixed/ current assets ofover Rs.450 billion (US$ 5billion), it ranks amongstthe top five businesshouses of Pakistan. Thegroup has strong presencein four most importantbusiness sectors of theregion namely Power,Textiles, Cement and

Financial Services. In addition, the Group also hasreasonable market share in Insurance (Adamjee andSecurity General), Paper products (Nishat ShoaibaPaper Mills) and Aviation (Phonix Aviation). It also hasthe distinction of being one of the largest players in eachsector. The Group has a remarkable position in themarket as good as any multinationals operating locally interms of its quality of products, services andmanagement skill


Page 444

Executive Summary

Nishat Group owns two power plants at Lal Pir (Distt: Muzafargarh) named asLal Pir Power Ltd and Pak Gen Power Limited. Both plants are ISO 14001 &OSHA, 18001 certified and among the most efficient power plants in Pakistan,located near Muzaffargarh. Each unit is a 365 MW steam turbine, heavy fuel oil(HFO) fired electric generating unit. Steam is generated by a Forced CirculationRadiant Reheat type boiler. The boiler has the capacity to generate 1,200 tonsper hour of steam at a pressure of 176 kg/cm2 and a temperature of about541°C. Combustion gases originating from the combustion chamber of the boilerpass through an economizer and eventually discharge into the atmospherethrough a steel stack 150 m high. A continuous emission monitoring system(CEMS) has been installed at the stack to monitor the quality of stack gasesincluding CO, NOx, SO2, O2, and opacity. A flue gas desulfurization plant (FGD)with 85 to 90% efficiency has been provided for the removal of SO2 from theflue gases.

Lal Pir has developed and implemented an Environmental ManagementSystem which includes the Environmental Policy Statement, Planning &Implementation, Checking, Corrective Actions, and Management Review of theenvironmental performance of the organization.In addition to this Lal Pir is committed to fulfill the requirements of NEQS andWorld Bank for effluents and industrial gases emissions. Priority parametersare reported to EPA as per SMART (Self Monitoring and Reporting Tool)program on a monthly basis. Lal Pir strives to continually improve theenvironmental performance. We are challenged to not only meet or do betterthan environmental requirements imposed by Environment Protection Agency(EPA) and participating financial institutions, but to demonstrate continualenvironmental improvement while weighing the needs of our stakeholders.

The development and continuous improvement of environmentalmanagement system is part of Lal Pir commitment towards environmentalrequirements


Page 555

About Report

This report provides you with the information about the steps Lal Pir has taken forthe betterment of environment and the performance it has made for this cause. AllLal Pir employees contribute to achieving environmental goals, whether it is duringwork, at home or while traveling.

Commitment to Environmental Sustainability'We believe "Humans merely share the Earth. We can only protect the land, not

own it.''

Our mission statement clearly states that addressing the environment is part of theway we do our business. It is also the foundation for everything we do in relation tothe environment. We recognize that our activities, like all other activities on ourplanet, have an impact on the environment. We believe that we have theresponsibility to minimize and manage these impacts. This also helps us to be asuccessful company.

The report presents Lal Pir caring practices to create a better natural world wherehuman beings can live in harmony with nature. It includes our endeavors inconserving resources and effective waste management in our areas of operations.The report reflects our activities during 2011.

`


Page 666

Chairman’s Message

We continue to striveto be a better grouptoday than what wewere yesterday, forour clients, for ourshareholders, for ourinvestors, for theenvironment, for thecommunity and for ouremployees, for it iswith them that we

have achieved what we have. It is withthem that we will continue to surpassour past achievements.

Mian Mohammad Mansha


Page 777

Statement of Chief Executive Officer

Lal Pir Environmental Management System iscomer stone of Environmental ManagementSystem and establishes overall companyvision.

I have reviewed this EnvironmentalManagement System, and I am satisfied that itwill ensure:

Compliance with applicable laws andregulations

Conformance with Corp EnvironmentProtocol and other applicablerequirements

Achievement of the goals andenvironment policies.

I am personally committed to this Environmental Management System and willdemonstrate my commitment to the implementation of the company’s environmentpolicies and to continuous improvement. To the best of my knowledge, this businesshas the necessary resources to implement the Environmental Management System.

One decisive reason for developing EMS is to reflect our commitment and feelingthat the advantages of systematic work in the area of environment protection arequite important.

This Environment Management System is intended for our customers and suppliers,our employees, as well as the authorities and associations. I would like to inform youin this way of how the environment data have developed and our environmenttargets have been put into practice.

It is not only the impression we make on others that is important to us, but also thecontinual improvement process in matters of environmental protection.

Shahid Zulfiqar KhanChief Executive Officer


Page 888

CORPORATE PROFILE


Page 999

About Group Companies

Generation:

Nishat Group operates 4 power generation facilities in Pakistan and producing 1,150MW electricity. We are fighting to reduce country’s power crises.

Textiles:

Nishat Mills Limited, the flagship company of the group was established in 1951. Itsannual turnover for the year is over Rs.17 billion (US$ 283 million). NML with theproduction facility of 270,000 spindles, 740 looms and dyeing & printing capacity of 7million meters (7.65 million yards) makes Nishat the largest composite textile set up inPakistan

Cement:

D.G. Khan Cement Company Limited (DGKCC), a unit of Nishat group, is the largestcement-manufacturing unit in Pakistan with a production capacity of 5,500 tons clinkerper day. It has a countrywide distribution network and its products are preferred onprojects of national repute both locally and internationally due to the unparallel andconsistent quality. It is listed on all the Stock Exchanges of Pakistan.Furthermore, the Group has also set up a new cement production line of 6,700 TPDclinker near Kalar Kahar, Distt. Chakwal, the single largest production line in the country.

Financial Services:

Muslim Commercial Bank (MCB) is one of the leading banks with a deposit base ofabout Rs.230 billion (US$ 3.8 billion). MCB with more than 1200 branches country wideis the largest private bank of Pakistan also operating Internationally. Since itsacquisition, the management has improved its financial performance and now it is one ofthe most profitable banks of the nation.MCB is also the first Pakistani bank to be enlisted at London Stock Exchange in October2006 after attracting US $700 million worth of demand for its US $ 150 million GDRissue.

Insurance

Adamjee Insurance Company Limited (AICL) was incorporated as a Public LimitedCompany on September 28, 1960 and is listed on all three stock exchanges of Pakistan.The Company is also registered with the Central Depository Company of PakistanLimited (CDC) and is involved in the business of general insurance.

The Company commenced operations with a Paid-up Capital of Rs. 2.5 million, whichhas grown phenomenally in the past 5 decades. As of 2011 the Paid-up Capital of theCompany is Rs. 1.022 billion, which is the highest amongst all the General Insurancecompanies in Pakistan. AICL enjoys a competitive edge in the insurance industry due toits strong assetbase, paid-up capital, substantial reserves, balanced portfolio mix andsteady growth in gross.


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Lal Pir Power Plants

LAL PIR Power Limited (Formally AES Lal Pir (Pvt) Ltd)

The Unit was set up under the New Energy Policy (March 1994) of theGovernment of Pakistan. Nichimen Japan was engaged to take turnkeyresponsibility for EPC Contractor. Unit has commercially operated sinceNovember 6, 1997.

PAK GEN Power Limited (Formally AES Pak Gen (Pvt) Co.)

The Unit was set up under the New Energy Policy (March 1994) of theGovernment of Pakistan. Nichimen Japan was engaged to take turnkeyresponsibility for EPC Contractor. The Unit has been commercially operationalSince February 1, 1998. It is the first ever Flue Gas Desulphurization (Scrubber)System in Pakistan.

Lal Pir & Pak Gen Customer: Water and Power Development Authority

MW Fuel COD/DA ContractExpiration Date Plants

362 Oil Nov-97 2028 1

MW Fuel COD/DA ContractExpiration Date Plants

365 Oil Feb-98 2028 1


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Vision

To become a world class business & consistency stay ahead of any leadingpower business in the world in everything we do.

Mission

To maximize returns & value for the stakeholders without compromising onsafety, environment, best practices and plant integrity.

We believe in responsible industry leadership, creating profitable growth in harmonywith environmental sustainability and good corporate citizenship.

Board of DirectorsMr. Mian Hassan Mansha (Chairman) Mr. Mark Nicholas Cutis

Mr. Shahid Zulfiqar Khan (CEO) Mr. Mahmood Akhtar

Mr. Khalid Qadeer Quraishi Mr. Aurangzeb Feroz


Page 111222

Code Of Conduct

This Code of Business Conduct andEthics has been adopted by our Company.

It lays out the standards of conduct to

which we will all hold ourselves

accountable. The Code addresses thefollowing topics:

Compliance with All Laws, Rules, Regulations and this Code Conflicts of Interest and Corporate Opportunities Quality of Public Disclosures Protection and Proper Use of Company Assets Protection of Confidential Proprietary Information Insider Trading Fair Dealing Interacting With Government Compliance with Antitrust laws Environment, Health and Safety Respect for One Another Record Retention.

At times, this Code requires ethical conduct higher than that required by the law. Weare expected and required to conduct ourselves according to the language and spiritof this Code and seek to avoid even the appearance of improper behavior.Compliance with this Code must come before other business considerations. Evenwell-intentioned actions that violate the law or this Code may result in negativeconsequences for the Company and for the individuals involved.

The specific areas addressed in this Code are not new; Lal Pir people have alwaysbeen expected to comply with the specific legal areas set forth in this Code as suchcompliance is consistent with the Lal Pir values that all of us have been and areexpected to follow in our business relationships.

Set forth in this Code is a statement of the Lal Pir values that should serve as a guide forall of us in our continued efforts to comply with all applicable rules, regulations, laws andthis Code. While the standards set forth in this Code cover a wide range of businesspractices and procedures, this Code cannot and does not cover every issue or law thatmay arise, or every situation where ethical decisions must be made. The fact that a law,rule or regulation is not specifically covered by a section of this Code does not removethe requirement that all Lal Pir people are expected to comply with all laws, rules orregulations applicable to every business.


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OUR Values

Lal Pir Power was founded on the principle that strong businesses are built on trust,accountability and an environment that allows people to reach their full potential.Since our earliest days, our values have played a key role in making this principle areality throughout our company. They guide our actions and decisions, and are a keycomponent of the Lal Pir culture.

Every day, Lal Pir people are guided by a set of values to:

Put Safety First - We will always put safety first - for our people, contractors andcommunities.

Act With Integrity - We are honest, trustworthy and dependable. Integrity is at thecore of all we do, how we conduct ourselves and how we interact with one anotherand all of our stakeholders.

Honor Commitments - We honor our commitments to our customers, teammates,communities, owners, suppliers and partners, and we want our businesses, on thewhole, to make a positive contribution to society.

Strive For Excellence - We strive to be the best in all that we do and to perform atworld-class levels.

ave Fun Through Work - We work because work can be fun, fulfilling and exciting.We enjoy our work and appreciate the fun of being part of a team that is making adifference. And when it stops being that way, we will change what or how we dothings.


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OUR Commitment

Lal Pir strives to conductits business ethically,safely and with our manystakeholders' interests inmind.Lal Pir people and those performing work onour behalf are expected to adhere topertinent laws and regulations and tobehave ethically in all their businessrelations and decisions, includingcompliance with all policies, codes andprinciples. This strong sense of responsibilityis reflected in our approach to corporategovernance and our commitment tomaintaining a strong, objective Board. Itdrives our safety-first culture and ourinsistence on practical, effective safeguardsin our plants. It fuels our efforts to find energy

solutions that help preserve the environment. And it lends weight to our socialcommitment, as individuals serve their communities with the support of theirmanagement teams and innovative corporate programs.


Page 111555

Growth Philosophy

At Nishat Group, we believe that the demand for reliable, affordable electric powerwill continue to grow in the coming years. We continue to increase our financialflexibility and credit quality, while strengthening our existing businesses to ensurethey have the ability and operational efficiency to serve this demand. In addition, weare constantly identifying and analyzing opportunities to invest in new opportunitieswhere we believe we can build successful businesses that serve their constituencieswell. Our strategic global approach to growth and our unsurpassed global footprintafford some unique advantages when it comes to growth prospects:

Greenfield development skills and regional market presence offer distinctiveopportunities for new capacity additions

Our substantial foundation of existing businesses offers exclusive opportunitiesfor expansion

Strong acquisition and restructuring skills group position well for futureprivatizations and acquisitions

Our market knowledge allows targeting of countries where regulatory andbusiness environments can provide attractive returns.

We are very selective about theopportunities we investigate toensure we manage our risks andmaintain geographic balance. Weseek not to plant flags but togrow successful businesses. Webelieve that lasting growth is theresult of making careful decisionsand firm commitments. In regionswhere we already operatesuccessful plants and distributionbusinesses, we are alert to

opportunities to expand our services. And we continually review emerging projectpossibilities created by government privatization plans, competitor retrenchments, ordemands for new generating capacity.

Nishat Group’s broad market knowledge enables us to consider a range ofopportunities and test for strategic and economic robustness, whether in mergersand acquisitions or greenfield development. Our stringent investment approvalprocess includes independent internal assessment, commercial and legal diligence,and high-level review of the key elements of each transaction. This approachcombines the flexibility of market-specific knowledge with the governance benefits ofsenior approvals to maximize the application of Our prudent investment criteria. Thebottom line: this disciplined development strategy means we pursue only the bestopportunities for the group.


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ENVIRONMENTALCOMMIT MENT


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ENVIRONMENTALMANAGEMENT


Page 111999

EMS

Lal Pir / Pak Gen has developed and implemented an Environmental ManagementSystem which includes the Environmental Policy Statement, Planning &Implementation, Checking, Corrective Actions, and Management review of theenvironmental performance of the organization.

In addition to this Lal Pir / Pak Gen is committed to fulfill the requirements of NEQSand World Bank for effluents and industrial gases emissions. Priority parameters arereported to EPA as SMART (Self Monitoring and Reporting Tool) program on amonthly basis.

Monitoring & Controls

Implementation

EnvironmentalPolicy

Planning

ManagementCommitment

ManagementReview

Checking/Corrective Action


Page 222000

Following online systems are present to monitor air emissions and effluents:

CEMS (Continuous Emission Monitoring System) to monitor the parametersof stack emissions

Online monitoring system to check the chemistry of discharge effluents.

The Operational Controls taken by Lal Pir are as follows:

NOX Emission Control Fugitive Emission Control Effluent Treatment Noise Management Program SO2 Emission Control

Flue Gas Desulphurization (FGD) System

At Lal Pir and Pak Gen units are High Sulphur Heavy Fuel Oil (HSFO) Fired PowerPlants. The range of Sulphur present in HSFO may vary between 2.5 to 3.5 %.During combustion of HSFO, sulphur which is present in the fuel is oxidizes to sulfurdioxide (SO2).

We makes every effort to fulfill itscommitment to meeting the country's energyneeds with minimal environmental impact onland, air and water. The generating units arefitted with Flue Gas Desulphurization (FGD)plant removing 90% of the sulphur dioxide(SO2) from emissions; by-products of theFGD processes (gypsum) are recycled byusing these in the cement industry.

We are the first and only power station inPakistan, which has a Flue GasDesulphurization (FGD) Plant. A hugeinvestment for the sake of environment.

Environmental Aspects


Page 222111

Control MeasuresProcess/Activity Env.Aspect/Hazards Type of Hazard Impacts/Effects

Additional Controls

Emergency Land/ AirContaminationHydrazine

HandlingHydrazinespillage

ChemicalSkin Irritation,Vapor Poison,Corrosive, Toxic

Secondary Containment,Follow Chemicalhandling procedure

Emergency Land/ AirContaminationAmmonia

HandlingAmmoniaSpillage

ChemicalSkin Irritation,Vapor Poison,Toxic, Volatile


EmergencyLandContamination/FireLube Oil System

Lube oilLeakage/Spillage Chemical/

Physical

Suffocation, HeatBurns, Slippery,Explosive

Secondary Containment,Follow Lube oil handlingprocedure

EmergencyRise inTemperature,Excessive NoiseUnit Operation Steam Leakage/

HeatPhysical Skin Burns

Inspection of Highenergy System

Emergency

LandContamination,Potential firehazard, AircontaminationHFO Handling HFO Leakage/

spillage

Chemical

Skin Irritation, SkinBurn, Inhalationproblem,Suffocation, Toxic

Follow HFO Handlingprocedure, SecondaryContainment, Avoidignition sources

Emergency Land/ AirContamination

Acid Handling Acid spillageChemical

Skin Irritation,Vapor Poison,Corrosive, Toxic

Eye washer, Proper tool,Connections and flexiblehose fitness, secondaryContainment, Spilltrolleys, Proper Training,Awareness of MSDS

Emergency LandContamination

Caustic Handling Caustic SpillageChemical Skin Irritation,

Poison, Toxic


Emergency LandContamination

Flocculenthandling

FlocculentLeakage/Spillage Chemical/

Physical Slippery


Process/Activity Env. Type of Hazard Impacts/Effects Control Measures


Page 222222

Aspect/Hazards Additional Controls

Emergency Landcontamination

Coagulanthandling

Coagulantspillage /Leakage Physical Skin Irritation


normal Air contamination,fire

Chemical/Physical

Suffocation, HeatBurns, eye sightdeterioration

Welding processRelease ofArgon gasfumes

Physical Injury, Eye injury

Use welding hood or dowelding in ventilatedarea. In confined space,arrange properventilation, rotation

Transformer oilHandling

oil Leakage/Spillage Emergency

LandContaminationPotential firehazard Aircontamination

Secondary Containment,Follow ChemicalHandling procedure

Emergency Close the sourcePPE

Chemical

Unauthorizedperson not allowed,Area should bebarricaded

CEM,sCalibration gases Gases Leakage

Physical Skin Burns

Gas leakage sensor,available and testedPPE, Proper training

EmergencyLandContaminationAir ContaminationChemicals

HandlingChemicalsspillage

Chemical

Skin Irritation,Vapor Poison,Corrosive,Toxic


Emergency Material can felldownMaterial

Handling AccidentMaterial

It can hurt humanand damage theproperty

Qualified person havinglicense

Waste Management


Page 222333

Lal Pir / Pak Gen has a documented waste management procedure defining thetypes of waste along with the responsibilities for collection and disposal.

Waste Minimization Initiatives

Waste Type Storage Handling / Plan

Paper Red Color dust bin Transferred to Scrap yard atdesignated place and thento outside.

General solid waste& Toner

Green color dust bin Transferred to Scrap yard atdesignated place and thento outside.

Metallic Waste Green color dust bin Transferred to Scrap yard atdesignated place and thento outside.

Cotton ragscontaining Oil orGrease

Yellow color dust bin Transferred to Scrap yard atdesignated place.

Used Oil In container Drain the container in HFOpump house oil pit and thentransfer it to HFO tank.

Soot Drums Transferred to Scrap yardand then to third partydisposal facility.


Page 222444

Avoid buying over-packaged goods Buy products made from recycled materials (if practicable) Design products to minimize waste (reuse of scrap) Check to make sure that materials are not over-specified. Segregate waste for recycling to reduce waste disposal cost Maintain plant and equipment efficiently Avoid over heating of buildings (1 degree reduction in room temperatures can

reduce fuel bills by 10%) Only use lights when necessary.

Hazardous Waste Management

The Environmental Management Committee works with plant management forhazardous waste identification.

Following measures are taken to ensure environmentally safe handling anddisposal of hazardous waste:

Individuals moving wastes to temporary storage are trained for:o relevant waste characteristicso waste handling guidelineso appropriate spill control measures

Waste streams are segregated (e.g. municipal solid waste, scrap metal,wood, combustion products) appropriately

All containers used for the collection of hazardous wastes are structurallysound, properly sealed and chemically compatible with the material to bestored

Generation and disposal inventory of hazardous wastes is maintained Contracted hazardous waste offsite disposal facilities are audited for:

o compliance with applicable environmental laws and regulationso Acceptable environmental practices.


Page 222555

This program applies to all contractors and sub-contractors performing work for LalPir. It describes the HSE management requirements for contracted work from therequisition of the work through to the contract closure and contractor evaluation. Itonly focuses on the HSE aspects of contracted work.

Pre-Qualification

Pre-Qualification process is to assess a contractor’s past HSE performanceand the quality of their safety management programs to determine if theyqualify to work for Lal Pir.

The contractor pre-qualification process will include:

Lal Pir Person shall provided ‘Contractor Pre-Qualification Questionnaire’ The contractors must submit the same with all the information requested in

the form The Team Leader of the concerned team or his nominee or a cross-functional

committee or Safety Manager assesses the filled questionnaire to determine ifthat contractor is qualified for the work

If there is insufficient information to complete the assessment or if LPquestions the information provided by the contractor, a field audit of thecontractor should be carried out

The field audit should include work observations, facility and interviews withkey personnel

The assessed ‘Contractor Pre-Qualification Questionnaire’ of contractors tobe sent to Safety Manager by concerned for record

A qualified contractor list must be developed and maintained by SafetyManager on ‘List of Qualified Contractors’

The contractor pre-qualification information should be updated annually.

Contract Administration

The successful bidder must demonstrate to the Contract Administrator and ProjectManager that they can meet the requirements of the tender/ RFP. LP willdemonstrate good judgment by only selecting contractors that:

Are pre-qualified Provide satisfactory safety information Meet the project’s safety expectations Are able to fulfill the requirements of the contract.

Final Evaluation

HSE Contractor Management


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Upon completion of the project, Project Manager has to complete a final evaluationof contractor’s safety performance on ‘Project Final Evaluation’. It is based on the‘Project Work Observation’ records and feedback from Contract Monitor. In theevaluation he has to make a recommendation as to whether or not, or under whatcircumstances, the contractor should be considered for future work.Audit

CSMP is audited annually by Lal Pir HSE internal auditors. Training is provided toensure that people involved in contract administration, project management andmonitoring have the knowledge and skills required to fulfill their responsibilities.Record of trainings is maintained by Safety Manager.

Records

Name Maintained By Retention PeriodPre-QualificationQuestionnaire

SafetyManager Two Years

List of QualifiedContractors

SafetyManager Updated Annually

Project HazardAssessment and SafetyPlan

ProjectManager

One year fromproject completiondate

Project Work Observation ProjectManager


Project Final Evaluation ProjectManager


HSE Training Attendance SafetyManager Three Years

Issues with Contractors

Following are the issues faced regarding contractors:

Unavailability of standards and well maintained equipments Unavailability of technical labor Lack of awareness on HSE matters.


Page 222777

EHS Initiative

Outside trainings of employees resulting the level of understanding has beenincreased

Registration process for CDM of VVVFD installed at FDFs has been inprogress

Regular Safety and Environment training program Reporting to EPA as per SMART program (Self Monitoring and Reporting

Tool) Proper storage of soot Development and Implementation of environmental management system Development and Implementation of Safety Management System Development and Implementation of emergency response plan Special trainings on emergency response Celebrated plant wise Environment, Health & Safety week every year Celebration of World Environment Day Celebration of Safety Day Safety Hour of the Month Contractor Safety Management Outage Safety Management Monthly emergency response drills to create more awareness in handling

emergency situations Monthly emergency response meetings Monthly EHS Team meetings Plant evacuation drills Monthly best Near miss recognition Occupational Health Monitoring Construction of secondary containment for Fuel Oil Storage Tank Area Placement of Spill Kits at different locations Placement of New Colored Waste Collection Bins at different location for

effective waste segregation Installation of New Environment, Health & Safety Awareness Sign Boards


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Award ceremonies


Page 222999

Newly Constructed Dyke Wall around Plant

Newly installed VVVF for FDFs


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Emergency Preparedness & Response

Objective

The purpose of this procedure is to facilitate and to organize individual’s actionsduring workplace emergencies and get Lal Pir people out of danger quickly andefficiently. A disorderly evacuation under emergency condition can lead toconfusion, injury and property damage.

Possible Situations

A wide variety of emergencies both man-made and natural may require a workplaceto be evacuated. These emergencies include but are not limited to fires, bombthreats, toxic material releases etc.

Purpose

The objective of the Emergency Preparedness and Response System is to:

1. Recognize and plan for appropriate responses to an emergency so that thesafety risks associated with the emergency may be prevented or mitigated

2. Train and prepare individuals working inside the installation so that they canrespond effectively in the following:o Potential Risk Assessmento Fire detection and Alarm Systemo System for Intervention and Actions to control any incidento Emergency Evacuation Procedure / Drills in order to meet the

emergency situations, like Bomb Threatening Message or Terror Act /Threat etc.


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Emergency Response Plan at a Glance

INCIDENT / ACCIDENTCATEGORY 0-3

Observer on SceneActivate AlarmInform CCRStart Local Action

Category0Emergency Response Team

Proceed to scene of incidentGive necessary assistance fire fightAct under Fire chiefAfter incident control report to CCRDo liaison with Incident Controller

CCRRespond to AlarmInform Fire Chief /Emer Team LeaderRush scene of incidentStart ground activity

Emergency Team Leader

Proceed to scene of incidentCommunicate on RadioFor minor incident, after it is clearAnnounce "ALL CLEAR "For major incident, assess situation

declare category 1-3Appoint himself as Incident Controller.Inform Plant ManagerCoordinate Emergency Response at

sceneSite CALL OUTAssign person to do Head CountMaintain regular contact with

Emergency Main Controller

Doctor , Maintenance Staff

Respond to CALL OUTCarry out specified tasksReport to Assembly Point

All Other Personnel

Make safe exit, Go to Assembly PointAssist as required

Plant Manager

Proceed to emergency control center (CCRCommunicate by using radioDeclare himself as Emergency Main Controller.Alert mutual aid partnersCheck call out responseSupport the on scene responseBrief the security servicesMaintain regular contacts with all the team involved in controlling the incident.Liaise with local authoritiesWhen incident is secure, announce "ALL CLEAR"Commence investigation of the incident


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Risk Assessment

RESPONSIBLEFUNCTION

PROCESS RELATED DOCUMENT

Safety CommitteeArea Team Leader

Identify the Hazards Workplace Hazard

Identification Job Hazard Analysis

Workplace Hazard IdentificationSheetJob Hazard Analysis Sheet


Estimate the Risk Workplace Hazard IdentificationSheetJob Hazard Analysis Sheet

Safety Committee Evaluate the significance of

RiskWorkplace Hazard IdentificationSheetJob Hazard Analysis Sheet

Area Team LeaderSafety CommitteePlant Manager

Identify, recommend, reviewand approve the controlmeasures

Engineering Controls Administrative Controls Personal protective equipment

Area Team Leader Implement the controlmeasures


Communicate the Risks

Safety Committee Review and update the RiskAssessment

Workplace Hazard IdentificationSheetJob Hazard Analysis Sheet


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Stakeholders Engagement/ Feedback

We believe in a business strategy that generates value while contributing tothe well being of the plant in general and communities living around inspecific.

Communication Strategy

Management ensures that communication takes place within the organizationregarding the effectiveness of its management system and employees are involvedin the development and review of policies / procedures and consulted when there arechanges that affect work place safety, health and environment.

Employee involvement on HSE matters is ensured through

EHS Team Risk Assessment process Training programs Monthly safety lectures Involvement in incident investigations Safety walks & talks Millstone recognition / celebrations Communication Meetings.

Stakeholders Engagement

HSE Report published in the Environment report 2011 to provide informationabout the environment and operational performance of Lal Pir to stakeholdersfor assessing their relationship with LP

The complaints are received through mail or by individuals and diverted toEMR for proper handling and corrective measures

The customers and stakeholders are provided full assistance to handleemergencies, which are beyond their control

Safety & environment lectures to stakeholders External Communications: written or electronic correspondence, telephone

conversations and oral discussions or meetings with anyone external to thecompany.


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Financial Policies

Basis of Preparation

These financial statements have been prepared in accordance with InternationalFinancial Reporting Standards (IFRS).

Accounting Convention

These financial statements have been prepared under the historical cost basis,except for the revaluation of financial instruments.

Property, Plant & Equipment

Property, plant and equipment are stated at cost less accumulated depreciation andaccumulated impairment losses, if any, except freehold land which are stated at cost.

Depreciation is charged to income applying the straight line method whereby cost ofan asset less its residual value is written off over its estimated useful life. Estimateduseful life of an asset is reviewed periodically taking into account commercial andtechnical obsolescence as well as normal wear and tear.

Depreciation on additions is charged for the full month in which the asset ispurchased and on deletion up to the month immediately preceding the deletion.

Profit and loss arising on disposal of assets is included in income in the period ofdisposal.

Stock of Fuel Oil

Fuel oil is valued at the lower of cost and net realizable value. Cost is determined onthe basis of first-in-first-out method.

Stores, Spares & Consumables

These are valued at the lower of cost and net realizable value. Cost is determined onthe basis of first-in-first-out method.

Trade & Receivables

Trade debts are recognized at original invoice amount less an allowance for anyuncollectible amounts. An estimate for doubtful debts is made when collection of thefull amount is no longer probable. Bad debts are written-off when identified.

Other receivables are recognized and carried at cost.


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Borrowing Costs

Borrowing cost is recognized as an expense in the period in which they are incurred.

Trade & Payables

Liabilities for trade and other payable are carried at cost which is fair value of theconsideration to be paid in future for goods and services received whether billed tothe Company or not.

Taxation

Profit of the Company is exempt from levy of income tax under clause 132 of Part Iand clause 15 of Part IV of the Second Schedule to the Income Tax Ordinance,2001. Therefore, no provision for income tax is required, except in respect of otherincome based on prudence. concept due to levy of tax by the income tax authorities.

Revenue

Revenue for energy and capacity invoices is recognized on accrual basis. Income isbased on the tariff under the PPA between the Company and WAPDA.

Other PPA related incomes and charges are recognized when invoiced. Interest andrental income is recognized on accrual basis.


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Internal Auditing

HSE Audits

Online Effluents & Emission monitoring

Monthly Environment & Safety Reports Generation

Monthly Plant Housekeeping Walk

Monthly Plant Cross Functional Audits

Monthly Audits by Leadership

Audits by HSE Committee

Weekly BBS Walks by Leadership

Annual Plant Audit by CEO

Environment, Health & Safety Week Celebration

Proper House keeping plans with in plant.


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ENVIRONMENTALPERFORMANCE


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2011 Milestones

Best Environmental reporting Award – 10 by ACCA WWF in Non-Listedcategory

Best Environmental Excellence Award - 11 by National Forum forEnvironment & Health

Short Listed for International Green Awards, UK Successfully carried out ISO 14001 & OHSAS 18001 recertification Audit

without any Non Conformance

Lal Pir and Pak Gen completed annual monthly outages without anyRecordable incident.

We belong from the school of thought that believes that reporting near misses isa proactive measure to prevent major accidents. We encourage our people toreport near misses freely, without any hesitation:

In 2011, our YTD NM figure stands at 893 which include more than a hundredrelated to environment.

The journey towards safety does not end at these achievements but in fact,we are carrying forward our commitment as every new day brings newchallenges along.


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Page 444555

Our Results

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

-

20

40

60

80

100

120

140

2004 2005 2006 2007 2008 2009 2010 2011

GWh

MMlb/yr

SOx Emissions

SOx Gross Gen

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

-

2

4

6

8

10

12

2004 2005 2006 2007 2008 2009 2010 2011

GWh

MMlb/yr

NOx Emissions

NOx Gross Gen

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

-

100,000

200,000

300,000

400,000

500,000

600,000

2005 2006 2007 2008 2009 2010 2011

GWh

lb/yr

PM Emissions

PM Gross Gen


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Safety Statistics

2009 2010 2011

Fatalities 0 0 0

Lal Pir employees LTAs 0 1 0

Contractors* LTAs 0 0 0

Recordable 1 1 10

First Aids 1 2 5


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Carbon Offset

The energy efficiency improvement initiative is one of the major steps taken upby the company in keeping with its commitment as a responsible corporatecitizen contributing towards sustainable development.

Cooling Tower Performance Improvement

At Lal Pir and Pak Gen, “Cooling Tower performance improvement through celladdition” was taken as a carbon offset project. The cooling tower has a large impacton plant heat rate and a bad heat rate requires more fuel burning resulting inincreased CO2 emissions. The project was registered as a CDM project under KyotoProtocol with UNFCCC.

The project activity has contributed to sustainable development in following manners:

Social well being Environmental well being Technological well being.

This CDM project will improve energy efficiency and ultimately reduce CO2emission.

Years Annual estimation of emissionreductions in tons of CO2

2008 9542.7

2009 9542.7

2010 9542.7

2011 9542.7

2012 9542.7

2013 9542.7

2014 9542.7

2015 9542.7

2016 9542.7

2017 9542.7Total estimatedreductions (tons of CO2)

95,427

Total number of creditsyears 10


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Mass Afforestation

We use “Biological Carbon Fixation”, i.e. planting enough trees to offset thecarbon emitted by plants over their lifetimes.

Lal Pir started Mass afforestation program on barren land around the plant byengaging local NGO and people to encourage community development:

1,170 acres so far to offset CO2 emissions Encouraging green economic to reduce pollution and trigger a process of

sustainable development Making marginal land cultivable to arrest loss of farmland to non-agricultural

use in Pakistan.`


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Operational Update


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Social ResponsibilityProgram


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SR Policy

Lal Pir Power Limited / Pak Gen Power Limited

Formally AES Lal Pir (PVT) Ltd / AES Pak Gen (PVT) Company

Lal Pir/Pak Gen takes its responsibilities to society seriously. We want to be perceived asa good neighbor within the communities where we are present, and to contribute toworthy causes wherever and whenever we can.

As part of this process, we have developed a policy that governs the way that we helpcharities. To this end, a Social Responsibility Committee (SRC) has been established withmembers representing each team/area. The committee meets regularly to makedecisions about which charities to support, discuss the ongoing projects and how best tohelp the surrounding community.

The Charity and Sponsorship Policy of Lal Pir/Pak Gen covers following areas:

Health:

a. Lal Pir/Pak Gen shall bear the running expenditures of ‘LP Clinic under SR Program’including but not limited to

1. Salaries of one male doctor, one female doctor, two attendants, one dispenser,one lab attendant and one gate keeper. The staff salaries would be discussed andrecommended by SRC and approved by SR Team Leader.

2. Medicines for general out door patients and special cases.3. Necessary medical instruments and supplies.4. Electricity supply bill and routine maintenance.

b. Lal Pir/Pak Gen shall arrange free medical camps round the year of different naturesas recommended by SR committee and approved by SR Team Leader. SR Committeewould schedule the camps for the next year during last meeting of current year.

c. Lal Pir/Pak Gen shall cater the individual needs regarding health issues; howeverthese cases must carry the recommendations from the doctor of ‘LP Clinic under SRProgram’.

Education:

a. Lal Pir/Pak Gen shall continue to enhance the literacy rate in the surrounding areas.SR committee shall discuss and recommend the construction/renovation of newschools and institutes on need basis and shall submit their proposals to SR TeamLeader for approval.

b. Lal Pir/Pak Gen shall support the Little Angels program for the kids of localcommunity. SR Committee shall keep the record of their performance that shall bethe only source of scholarship continuation.

c. Lal Pir/Pak Gen shall try to sponsor those parents within local community, preferablywithin Tehsil Kot Addu, who would like to get their children educated but couldn’t doso because of their financial condition. The sponsorship shall cover the school feesand expenses directly related to school like books, uniform etc. and shall be paid onlyagainst valid receipt. For this purpose, the parents will be encouraged by SRmembers who would visit local community & schools; hold meetings with them andtry to motivate the people to send their children to schools. Parents will be educated


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regarding benefits of education and how literacy can help to improve themselves aswell as improving literacy rate in the country. The selection of students would berecommended by the SR Committee and approved by SR Team Leader. Thecontinuation of sponsorship will strictly be dependent on children performance meansgetting marks above 50%, once admitted to schools.

d. Lal Pir/Pak Gen shall support\up-grade Vocational Training Institute, Mehmood Kot asbeing the donor of its complete building on as and when required basis. The supportparameters shall be discussed and recommended by SR Committee and approved bySR Team Leader.

e. Lal Pir/Pak Gen shall provide miscellaneous facilities in the surrounding schools likesheds for cycle stands, boundary wall, drinking water facility etc. on as and whenrequired basis. Any related case would be discussed in SR committee and approvedby SR Team Leader.

Environment

Lal Pir/Pak Gen shall increase plantation in the surrounding areas to reduceenvironmental pollution and CO2 in collaboration with well know third party.

Infrastructure

a. Lal Pir/Pak Gen shall build/upgrade the infrastructure in the surrounding communitylike roads, bridges, drinking water tanks etc. on as and when required basis.


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Education

Already Completed

Constructed Higher Secondary School Science Block Constructed a Vocational Training Institute (VTI) Constructed a state of the art school with TCF and facilitating its operation Adopted five schools from City District Government and operating them with

the help of an NGO “CARE Foundation” Established science lab facility in nearby High School Donated 10 school buildings for a population of 0.4 million Repaired and enhanced facilities for 10,000 students in 21 schools Technical training school & inter college building up-gradation in

Muzaffargarh.In Progress Working with CARE Foundation to improve education standard Sponsoring two students in LUMS for Engineering studies. Running a Little Angle Studies Program in for the kids of local community.


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Health

LP has constructed and is operating a clinic for basic health requirements ofsurrounding community comprising around 100 villages with a population of0.4 MM. 42,116 Patients were treated free of cost in 2011.

Free medicines are provided Enhanced the clinic infrastructure and constructed; A laboratory An emergency treatment room A general ward and a camp room Adopted a number of patients of TB, Asthma, Hepatitis and Epilepsy for

complete treatment Donated Diagnostic Centre at Dist. Hospital Muzaffargarh for about 2.0 million

population Organizing eye and campus for general treatment Provided Hepatitis vaccination of house maids and house boys Total camps in 2009 = 4 (2 Eye + 2 Medical) Total camps in 2010 = 5 (2 Eye + 3 Medical) Total camps in 2011 = 2 (1 Eye + 1 Skin)


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Electrified 28 villages surrounding the plant and provided infrastructure(transformers, poles and transmission lines through WAPDA distribution)

Construction of around 24 kilometers farm to market road 6 Bridges on Muzaffargarh canal and the drain; benefiting around 50 villages. Providing filtered water for the surrounding community Constructed 20 km gravel road in the surrounding village Construction of two model Villages

for Flood Effected People Construction & Repair of 50 houses

damaged due to flood A water filtration plant of 500

gallons per hour in the vicinity

Lal Pir took the initiative and built thefirst 10 family homes in SOS Village forabout 100 homeless children in Multan.

Infrastructure


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Feedback Form

Dear ReaderWhat do you think of this report? Your feedback will give us valuable input forfuture planning of activities and reporting. Please take a moment to completethe brief survey below and fax it back to us.

Thanks!

1. WHICH OF THE FOLLOWING SECTIONS DID YOU FIND THE BEST?

About Our, Values and Code of conduct

Environmental Commitment & Structure

Environmental Performance

Social Responsibility

Others

2. HOW WOULD YOU RATE THIS REPORT?

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3. WHAT OTHER INFORMATION WOULD YOU LIKE TO SEE REPORTED?

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Driving excellence and continuous improvement, weintend to stay at the forefront of our industry.

... Lal Pir / Pak gen

For any further questions, commentsor ideas please contact;

EHS ManagerLal Pir Thermal Power Station, MehmoodKot, Muzaffargarh P.O.Box 89Contact: +92662300030Fax: +92662300260www.lalpir.com

Documents

Environment Report 2011 - Lalpir Powerlalpir.com/env.pdf · 2014-03-27 · ENVIRONMENT REPORT 2011 Page44 Executive Summary Nishat Group owns two power plants at Lal Pir (Dis tt: