Social Monitoring Report Bi-annual Social Monitoring Report January 2015

PAK: MFF – Power Distribution Enhancement

Investment Program (Tranche 2)

Prepared by Lahore Electric Supply Company, Punjab for the Asian Development Bank.

2

NOTES

(i) The fiscal year (FY) of the Government of the Islamic Republic of Pakistan and its

agencies ends on 30 June. (ii) In this report “$” refer to US dollars.

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. 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.

PAKISTANgEsltwENT ISLAMABAD

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65352 LAHORE ELECTRIC SUPPLY COMPANY

Chief Engineer Development (PMU) LESCO 132 — kV Qurtaba Grid Station Mozang Lahore

Ph. # 042 — 99214410 Fax # 042 - 99214412 Email: cedev(eleseo.gov.pk

No. 776 -7 3 C.E (Dev)/DM (E&S)/ADB-02 Dated:$.0/01/2015

ASIAN DEVELOPMENT BANK

Werner Liepach, Country Director PRM, Asian Development Bank Level 8th , Serena office complex Islamabad

Sub: - Bi Annual Social Monitoring Report (July-December 2014) of LESCO for STG Projects to

be financed under Asian Development Bank (ADB) Loan Trundle — II

Please find enclosed herewith the Bi-Annual Social Monitoring Report (July-Deeember2014)

regarding STG Projects of LESCO to be financed under Asian Development Bank (ADB) Loan

Tranche II for review please.

DA/As above

(Ateeq / ad Khan) Chief Engineer (Dev PMU LESCO

Info:

I . Technical Director LESCO 2. Ishfaq Khokhar Asian Development Bank level 8th Serena office complex, Islamabad

3. Liaqat Lali Project Analyst Asian Development Bank level 8th Serena office complex

Islamabad

4. Master File

Bi — Annual Internal Social Monitoring Report

Project Number: 2727 — PK (Trench° — II) (Jul — Dec 20'14)

Islamic Republic of Pakistan

10.wer.Di.stributtort Enhancement InyQstment Project,

(p-1D.E-1 p), Ti7anchc,

Multi — Tranche Financing Facility (MIT)

Financed by Asian Development Bank

Prepared By: Environment & Safeguard Cell — Project Management Unit

Office of the Chief Engineer Development LESCO 132 — kV Qurtaba Grid Station Complex, Bahawalpur Road Lahore — 54000 Pakistan

For: Pakistan Electric Power Company (PEPCO)

Lahore Electric Power Company (LESCO) This report does not necessarily reflect the views of ADD or the Government of Pakistan, and ADD and

the Government can not he held liable for its contents

ASIAN DEVELOPMENT BANK

A,JANDEvEi .0 p:',1c)JIT (N t D4 _.1.‘, _L=..13.7a.'.4.2(:-..--.; 7,N \

II 02 FEB 2015 ! ,...;

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1. Introduction

1.1

LESCO is a public limited company responsible for distribution of electricity within its

territorial jurisdiction comprising of five districts; Lahore, Kasur, Okara, Sheikhu Pura

and Nankana of Punjab Province. LESCO was established in 1998 under Companies

Ordinance, 1984 as a result of restructuring of the Power Wing of WAPDA after the

enforcement of National Electric Power Regulatory Authority (NEPRA) Regulation of

Generation, Transmission and Distribution of Electric Power Act (XL of 1997). LESCO

is presently serving approximately three Million customers (Domestic, Commercial,

Agricultural, Industrial and others).

Project Management Unit (PMU)

1.2 LESCO Environment and Social Cell had been established in 2007 and this cell is

currently part of Project Management Unit PMU established in 2009 and headed by Chief

Engineer Development. PMU comprises of four sections i.e. Planning, Scheduling &

Coordination, Procurement, Finance, M.C&C, Environment & Social Safeguard and GSC

department.

The organogram of Environment and Social Safeguard Cell is given below:

Chief Executive Officer

LESCO

Technical Director

Chief Engineer (Development

D.M (Environm n & Social)

Computer

Operator A.M (Social) A.M (Environment)

Record

Keeper Environment

Social Surveyor Inspectors (2) LDC

Inspectors (2) (2) Security

Guards (5)

2. Project overview

2.1 LESCO through GOP has under gone a loan, project and financing agreement with the

Asian Development Bank under Power Distribution Enhancement Investment Project

Tranche - H in order to strengthen its existing distribution, transmission infrastructure and

institutional capacity. The detail regarding project is summarized below:

ADB Loan No. 2727(SE) - PAK

Project Title Power Distribution Enhancement Investment Project Tranche II

Borrower Islamic Republic of Pakistan

Executing Agency Pakistan Electric Power Company (PEPCO)

Implementing Agency Lahore Electric Supply Company Ltd. (LESCO)

Total project cost (revised) US $ 35.46 Million.

ADB's financing (revised) US $ 24.88 Million

Counterpart Funding US $ 10.58 Million.

Loan Signing Date January 28, 2011

Date of Closing March 31, 2015

Loan Effective Date October 06, 2011

3. Scope of Work

Sub projects to be financed by Asian Development Rank in Tranche — 11 included following

scope of work:

Construction of New Grid Stations 05

Augmentation of Power Transformers 12

4. Social Management

4.1 02 Nos. Land Acquisition and Resettlement Plans LARPs (approved by ADB) for

132 kV Grid Stations Dania Chuchak and Central Park & 03 Nos. Due Diligence

Reports (approved by ADB) for 132 kV Grid Stations DHA Rahber, Jubilee Town

and Press Club Housing Society have been prepared by IVI/s BPI and CEO LESCO

approved the same on 10 — 07 —2010.

4.2 Land Acquisition and Resettlement Plans (LARPs) have been translated into Urdu

and uploaded on LESCO's website (www.lesco.gov.pk) on 15-11-2010 after

approval of ADB

4.3 Clauses regarding Social safeguards have been provided to the procurement section to

include in the bidding documents and EMMP & RP is the part of Bidding Document

of STG Projects on turnkey basis.

4.4 An orientation workshop on Environment and Social Issues has been conducted on

December 24'2011. Another Training Session is planned in next quarter

4.5 Land Acquisition and Resettlement Plans LARPs have be updated keeping in view

the inflation rate according to current market rates as desired by ADB for Doula

Chuchak and central park grid station Sc transmission line. Updated LARPs have been

submitted to ADB for approval on 29-04-2014.ADB reviewed and approved on 13-

10-2014. Revised LARPs has been under approval of CEO LESCO and uploaded on

website soon. LARPs were prepared on approved route plan and still there is no change in

route plans so there is no remarkable/major change in the baseline data as provided in original

LARPs.

5. Social Monitoring

5.1 The land for all grid stations is in the possession of LESCO. No involuntary resettlement

is involved as land for four grid stations had been provided by Housing Societies while

land for Dania Chuchak grid station is the property of LESCO for about fifteen years.

5.2 Civil Works has been completed at 132 KV Doula Chuchak grid station. Works of jubi lee

town & DHA Rabber are under progress.

5.3 GSC (T&G) Division is making assessment payment to the affected persons of feeding

transmission line of Doula Chuchak. Compensation to Rs.2962473/.to affected persons

(62 towers) has been disbursed while remaining (28 towers) is under process.

Compensation has been paid on actual basis to each affected persons in three stages

(construction of foundation and Erection of tower and stringing of conductor).

Compensation has been disbursed through committee formulated by P.D GSC.

5.4 Augmentation works shall be carried out within existing grid stations and no land

acquisition or involuntary resettlement is involved.

5.5 GSC staff has been apprised regarding social aspects of the subprojects and on site

briefing to the contractor has also be given for effective implementation of ILAEPs

during site visits in Sep & Oct 2014

5.6 Mitigation Measures

5.6.1. Social Complaint Register (SCR) in English and Urdu version has been prepared

and placed at active site in order to register the grievances and complaints of the

stakeholders and LESCO will also ensure for same at the other project sites.

5.6.2 Grievance Redressal Committee (GRC) has been notified for Tranche II in order

to comply with the Grievance Redressal Mechanism (GRM) described in LARPS.

The organogram of GRC is given below:

Project Director GSC LESCO Convener

Dy. Manager GSC concerned LESCO Member

Dy. Manager (P&S) PMU LESCO Member

Dy. Manager (Environment and Safeguard) LESCO Member

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