Environmental Monitoring Report · Environmental Monitoring Report Bi-annual report Covering the period of January – June 2016 ... load shedding is frequent especially in winter

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Environmental Monitoring Report

Bi-annual report Covering the period of January – June 2016

KGZ: Power Sector Rehabilitation Project, Phase 1 Project Number: 44198 - KGZ ADB Loan/Grant Number: L2869/G0294-KGZ Prepared: July 2016

Prepared by the Open Joint Stock Company Electric Power Plants, with the assistance of the Project Implementation Consultant (Fichtner GmbH & Co. KG –Energy, Germany) for the Kyrgyz Republic and the Asian Development Bank. This environmental 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.

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Table of Contents

1. Introduction 4

1.1 Project Description for Phase 1 4

1.2 Documents relevant for Environmental Safeguard 5

1.3 Implementation Progress 6

1.4 Clarifications of Design 7

2. Environmental Management 8

2.1 Institutional Arrangement of the Project 8

2.2 Environmental Safeguards Program 9

2.3 Grievance Redress Mechanism 10

2.4 Awareness Raising and Environmental Training 10

3. Environmental Monitoring 12

3.1 On-Site Inspections and Audits 12

3.2 Findings 12

3.3 Non-compliance Notices 14

3.3.1 Oil storage site 14

3.3.2 Recruitment of Environmental Specialist by EPP 14

3.3.3 Contractor’s Site-specific Environmental Management Plan

(SEMP) 14

3.3.4 Contractor’s HS Plan 14

3.4 Environmental and Corrective Action Plan 15

4. Findings and Recommendations 17

Bi-annual Report January – June 2016 KGZ: Power Sector Rehabilitation Project

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Abbreviations:

ADB Asian Development Bank

CC Designed Construction Contractor

Contractor Designed Construction Contractor

IEE Initial Environmental Examination

EMP Environmental Management Plan within IEE

EPP Electric Power Plant Company

ES Environmental Specialist to be recruited by EPP

GRM Grievance Redress Mechanism

HPP Hydro Power Plant

HSE Health, Safety, Environment

IPIU Investment Projects Implementation Unit within EPP

PAM Project Administration Manual

PIC Project Implementation Consultant = FICHTNER

PIU Project Implementation Unit within EPP for ‘Power Sector

Rehabilitation Project’

WB World Bank


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1. Introduction

The backbone of Kyrgyz power generation is the Naryn River with its

several hydropower plants (HPP) Kambarata 2, Toktogul, Kurpsai, Tash-

Kömur, Shamaldy-Say and Uch Kurgan.

Electricity demand in Kyrgyz Republic is highly seasonal with two thirds

of domestic consumption taking place in autumn and winter. Although

electricity generation capacity has nearly doubled since the Soviet era,

load shedding is frequent especially in winter when hydropower output is

limited due to low river discharge, while cuts arise from problems due to

technical failures in the outdated generating equipment.

Hydroelectric generation from the Naryn Cascade is central to the present

and future economic development of the Kyrgyz Republic, also with

view on an electric power generation and transmission system regionally

managed between the Central Asian Countries in future.

However, the future security of this electricity capability is to be doubted

somehow because of the age of most of the named facilities. They are

over 50 years old, obsolete and many spare parts are no longer available.

In order to follow up the implementation of all needed environmental

safeguard measures Fichtner’s environmental expert did an audit

inspection mid of June 2016 to Bishkek to discuss with PIC and EPP the

progress of the Project. Because construction activities have not

commenced yet a field trip to Toktogul was not performed.

1.1 Project Description for Phase 1

In order to sustain power generation at HPP Toktogul (see Map 1-1) in

future, the Asian Development Bank (ADB) will finance the

rehabilitation of this hydropower station. For that purpose, an Initial

Environmental Examination (IEE) with Environmental Management Plan

(EMP) was prepared in 2012 and a final up-date was done on 28.02.2015

reflecting the actual technical measures which have been tendered in

three lots:

• Lot 1 - Underwater Inspection

• Lot 2 - Electrical Equipment

• Lot 3 - High Voltage Cables

Lot 1, Underwater Inspection includes the inspection of all submerged

Hydraulic Steel Structures by means of an ROV, including the supply of

a new ROV, which will become the property of the cascade for future

inspections of Toktogul HPP and of the other power plants.


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Lot 2, Electrical Equipment includes the refurbishment or replacement of

following electrical components:

• Four new special SF6 type generator circuit-breakers;

• Replacement of Main Transformers for Units 1, 2, 3 and 4;

• Replacement of the 6 kV switchgear with auxiliaries;

• Replacement of the 0.38 kV unit related switchgear with auxiliaries;

• Replacement of the 0.38 kV general station switchgear;

• Replacement of station auxiliary transformer 15.75/6.3 kV;

• Replacement of LV unit auxiliary transformer 15.75/0.42 kV;

• Replacement of bus ducts;

• New protection equipment and FOC for Line Protection (cable and

OHL) between powerhouse and 500 kV switchyard.

Lot 3, High Voltage Cables includes the replacement of all four oil-filled

cable systems by new 500 kV XLPE cable systems.

Map 1-1: Location of HPP Toktogul

1.2 Documents relevant for Environmental Safeguard

• Initial Environmental Examination (IEE) for Rehabilitation of

Toktogul HPP. ADB - TA-7704 (KGZ) Power Sector Rehabilitation

Project, May 2012;

• Project Administration Manual (PAM) to Power Sector Rehabilitation

Project, May 2012;

• Financing Agreement between Kyrgyz Republic and ADB of

September 2012. Schedule 5, clauses 16 – 21;

• Appendix B of the Special Conditions of the Contract between

Fichtner and EPP;

• A final update of Initial Environmental Examination (IEE) for

Rehabilitation of Toktogul HPP under the Power Sector Rehabilitation

Project was prepared by the Project Implementation Consultant

Fichtner on 28.02.2015. This version is actually published on ADB

website.


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1.3 Implementation Progress

In August 2013, a first round of tendering was conducted. The offers to

this tender were received in November 2013. However, during the

evaluation process deviations and non-compliances were found in the

bids. In May 2014, it was decided to reject all bids.

It was agreed to proceed with re-tendering of works to be done during

Phase 1. In order to enhance the competition, and also to optimize the

scope of the works, it was decided to split and rearrange the scope of

works of Phase 1 in several lots. Updated versions of the Phase 1 tender

documents have been prepared in three different lots.

Lot 1 was won by Korean Consortium BSR Co. Ltd and Aquadron Inc.,

Lot 2 was won by Chinese Company JOC International Technical

Engineering Co., Ltd. and Lot 3 won the Korean Consortium of LS Cable

and System & SM Powertech.

The progress and status of each Lot until now is presented in the

following:

Lot 1, Underwater Inspection:

Underwater inspections have been performed in June/July 2015. This

issue was closed in November 2015. The Remote operated vehicle used

for the underwater inspection was then handed over to EPP for further

use.

Lot 2, Electrical Equipment:

• Invitation for Bids on 17 April 2015

• Submission of Bids on 24 August 2015

• Submission of Bid Evaluation Report on 20 October 2015

• ADB no-objection received on 1 December 2015

• Notification of Contract Award / Letter of Acceptance issued to the

successful Bidder JOC Technical Engineering Co. Ltd.

on 2 December 2015

• Contract signed on 21 December 2015

• Contract effective on 8 February 2016


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Lot 3, High Voltage Cables:

• Invitation for Bids on 3 April 2015

• Bid Submission & Opening on 22 June 2015

• Submission of Draft Bid Evaluation Report on 22 July 2015

• Re-submission of Bid Evaluation Report on 7 September 2015

• ADB no-objection received on 11 September 2015

• Notification of Contract Award / Letter of Acceptance issued to the

successful Bidder / Joint Venture of

LS Cables & Systems Ltd. & SM Powertech Co., Ltd.

on 17 September 2015

• Contract signed on 12 October 2015

• Contract effective on 18 December 2015

A first set of design drawings and descriptions for Lot 3 was already

submitted and was reviewed by EPP/PIC. Contractor will revise and

resubmit the documents probably in July 2016 which will be followed by

the manufacturing process. It is expected that construction works for Lot

3 on site starts in September 2016 with the installation of storage areas

for oil and old equipment.

To Lot 2 of the tender some parts of drawings have been already

submitted and are under review by EPP/PIC. It is planned to deliver a

first out of the four power transformers before winter season 2016/2017

in November/December 2016.

1.4 Clarifications of Design

During a meeting with Almaz Asipjanov, ADB national environmental

safeguards consultant and Fichtner at 13 June 2016 some questions came

up concerning the technical procedure during 500 kV cable dismantling

process. Doing so following clarification questions were sent to the

selected construction contractor:

1. Give detailed information about procedure of dismantling the cable,

e.g. how to bring the cable out of the tunnel: as a whole (600 m

pieces) on a roll or cutting the cable in the tunnel in small pieces, or

how?

2. How exactly the handling of the old oil of the cables will be:

extraction, how to take the oil from the cable systems to the storage

site and finally to the trucks.

3. Stipulate emergency measures during this process.

The answers will eventually cause development of the Site-specific EMP

based on the given facts and will be incorporated in the Emergency

Response Plan to be set up by EPP/PIC.


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2. Environmental Management

2.1 Institutional Arrangement of the Project

The Investment Projects Implementation Unit (IPIU), which is one of

EPP’s departments, is specially assigned for implementing projects

funded by international development organizations such as World Bank

(WB), Asian Development Bank (ADB), etc. Currently, IPIU is

implementing two different projects (including ADB project). Within

IPIU, EPP has established a dedicated project implementation unit (PIU)

for implementing concerned components of the “Power Sector

Rehabilitation Project” in February 2013.

The structure of IPIU is as follows.

• PIU Manager,

• Project Engineer,

• Procurement specialist,

• Project accountant,

• Safeguard Specialist,

• Engineers of Technical and Maintenance departments.

The head of IPIU is assigned to execute duties of the PIU Manager and

two of IPIU’s key specialists execute duties of the Project Engineer/

Procurement Specialist and Project accountant. One engineer from the

technical department of EPP is assigned to perform duties of the Project’s

technical engineer. Because of absence of the safeguard specialist within

EPP, the selection of the safeguard specialist under Toktogul

Rehabilitation Phase 2 Project is in progress. This expert will cover all 3

phases of Toktogul HPP rehabilitation project.

According to PAM, the safeguard specialist of EPP/PIU is responsible

for the following:

• Ensure that the requirements identified in the initial environment

examination are included in the bidding documents and contracts.

• Ensure the implementation and monitoring of the safeguard and

published results in project quarterly progress reports and a semi-

annual environmental report.

• Supervise the Project Implementation Consultant (PIC) on mitigation

measures and monitoring plan as specified in the EMP and ensure that

the PIC submits semi-annual environmental monitoring reports.

• Supervise PIC on preparation of an updated initial environment

examination.

Taking into account the scope of the professional duties of the expert

responsible for the environmental issues in EPP, this person shall not

only support and assist the ‘Service of Reliability and Safety’ with

respect of implementation of the EMP, but should also be a strong

professional in the whole range of environmental issues including


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hazardous waste management, which can appear during construction and

operation works.

The PIU will administer all consulting and procurement contracts on

behalf of EPP. It will be responsible for bid evaluation, contract award,

construction supervision, and report to the Government and ADB.

The PIU manager will report directly to the Deputy General Director of

EPP. The PIU will be the main point of contact for working

communication between EPP and ADB. The PIU will coordinate the

consultants and contractors.

The PIU, assisted by the PIC, will submit necessary project plans, tender

evaluation reports, progress reports, applications for withdrawal of funds,

and any other required reports to ADB and the Government.

Within EPP, a department named ‘Service of Reliability and Safety’

exists. It is the responsible department for dealing with all safety and

health issues relevant for workers at the HPPs. Environmental aspects are

not covered by this department. The headquarters of this Service are

based at Bishkek with six people working in it. There are branches of this

service established in the Oblasts. In Djalal-Abad Province three of them

exist. The one at Kara-Köl is responsible for Toktogul HPP.

For construction, EPP as responsible PIU for the Project recruited

Fichtner as PIC for Phase 1 of the Toktogul Rehabilitation Project

(Project Management and Supervision of Toktogul HPP Component). In

this sense, the national and international team of consultants will assist

EPP as project supervision consultant on the rehabilitation of Toktogul

HPP.

2.2 Environmental Safeguards Program

The aim to implement the environmental safeguard program is to ensure

that the preparation, design, construction, implementation, operation and

decommissioning of the Project and all Project facilities comply with (a)

all applicable laws and regulations of the Beneficiary relating to

environment, health and safety; (b) with the environmental safeguards

requirement as set out in the SPS (ADB Safeguard Policy Statement,

2009); and (c) with all measures and requirements set forth in the

IEE/EMP, and any corrective or preventative actions set forth in a

Safeguards Monitoring Report.

The different obligations of the Beneficiary in this regard are given in the

Financing Agreement between Kyrgyz Republic and ADB of September

2012 in Schedule 5, paragraphs 16 - 21.

Detailed measures to bring the Project’s implementation in line with

ADB and national requirements are given in the EMP that has been

developed during the elaboration of the IEE. EPP as responsible PIU for

the Project has recruited a PIC. This Consultant assignment includes the


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update of the environmental management and monitoring plan (EMP)

detailing environmental mitigation measures, to address each identified

impact and recommend appropriate environmental mitigation measures.

In addition, a hazardous waste management specialist may be included in

the PIC to review the technical specifications and operating procedures

related to the waste management component and carry out the overall

supervision. EPP will assign an environmental expert for the duration of

the whole construction period of 3 years. This person shall support and

assist the ‘Service of Reliability and Safety’ with respect of

implementation of the EMP. He/she shall perform regular site visits that

also include the road between Toktogul HPP and Osh Thermal Power

Plant site to ensure that all mitigation measures are implemented

adequately.

The IEE describing the needed actions for monitoring and supervision of

the implementation of the EMP has been approved by ADB and the latest

up-dated version is published on the ADB Website

(http://www.adb.org/sites/default/files/project-document/154930/44198-

013-iee-02.pdf). In April 2012, the national State Agency on

Environmental Protection and Forestry (SAEPF) issued the

environmental approval (No. 01-21/1083) to the Project based on this

IEE/EMP report.

2.3 Grievance Redress Mechanism

A Grievance Redress Mechanism (GRM) was developed within the

scope for preparing the IEE and EMP. This GRM shall be maintained

during the whole duration of the Project’s implementation. It describes

the mechanism how to redress the affected peoples’ (AP) grievances in a

timely and effective manner.

Details of the GRM can be found in the up-dated IEE to the Project. The

former GRM has been completely replaced by a GRM applicable for all

ADB projects in the Kyrgyz Republic.

In principle, the structures to implement the GRM exist - except for e.g.

the construction contractor that has not been contracted yet. Because the

tender processes were only finished within the reporting period and the

construction has not been commenced, the execution of the GRM has not

been necessary so far.

In the year 2016 the PIU will start with the implementation of the GRM.

2.4 Awareness Raising and Environmental Training

A first training program was done in 2013 (see semi-annual report July-

December 2013). It is foreseen to perform a second training program on-

site at Toktogul in September 2016 as a kind of on-job training.


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It is intended that the HSE manager nominated by the construction

contractor and the environmental specialist of PIU (still to be recruited)

shall take part in this training. In addition other staff involved or

interested in HSE issues shall participate.

This training shall make aware all HSE issues related to the Project

(especially Phase 1) to the responsible staff on site. Implementation and

supervision of related mitigation measures is also one of the main topics

of this training.


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3. Environmental Monitoring

3.1 On-Site Inspections and Audits

During the Consultant’s ES audit in mid-June 2016, construction

activities at Toktogul have not commenced yet. Consequently, a field trip

to Toktogul HPP was not conducted. It is foreseen to perform the first

on-site inspection mid of September when the preparation of storage

areas for old oil and old equipment will have begun.

3.2 Findings

During the tender process and review of the submitted design documents

a final decision about the route to Toktogul for delivering the heavy

power transformers was made. As shown in Map 3-1 the route starts from

Bishkek through Kazakhstan to Taraz and from there to Toktogul site

(red line). The contractor intends to bring the transformer to Bishkek via

Khorgos near the Kazakh border and Alma Ata.

The contractor for Lot 2 submitted their proposal for transportation the

heavy power transformer together with the bidding documents. During

the negotiation and review process the contractor inspected different

possible routes. The contractor found the option as shown in Map 3-1

being the most reasonable. It is much longer than other options but

avoids passing e.g. the Töö-Ashuu Pass and has least restrictions due to

tunnels or bridges. Where necessary the constructor performs needed

temporary bridge reinforcement and strengthening of road section. But

according to the road survey there will be no major problems occurring.

This proposal was accepted by EPP.


7929A01/FICHT-16314427-v1 13

Map 3-1: Selected route for power transformer transportation through Kyrgyz Republic (red line)


7929A01/FICHT-16314427-v1 14

3.3 Non-compliance Notices

3.3.1 Oil Storage Site

According to the requirements stipulated in the EMP and given in the

tender documents the area to store interim old oil shall be around 25 m x

25 m = 625 m². The contractor actually offered to concrete an area of 28

m x 16 m = 448 m². This could suffice but to be sure having enough

storage capacity this proposal was rejected. The contractor will revise it.

3.3.2 Recruitment of Environmental Specialist by EPP

The employment of a National Environmental Specialist within EPP is

still pending. Meanwhile the position has been tendered and EPP is

evaluating at present the possible candidates.

3.3.3 Contractor’s Site-specific Environmental Management Plan (SEMP)

Contractor under Lot 3 will develop the SEMP with focus on

management of waste oil, waste oily papers and scrap metals, including

release/dismantling, storage, transportation and disposal. The developed

SEMP should be sent to PIC for endorsement and later approval by EPP

with incorporated response to comments from EPP/PIC on 14 June 2016

with the request for developing SEMP accordingly and provide more site

specific details as given in the project IEE report. The contractor shall

also add emergency response issues.

3.3.4 Contractor’s Health & Safety(H&S) Plan

The H&S Plan set up by the contractor for dismantling the 500 kV cable

has been submitted to Fichtner. This Plan gives substantial Health and

Safety requirements. .


7929A01/FICHT-16314427-v1 15

3.4 Environmental and Corrective Action Plan

In order to comply with EMP, with ADB and EPP agreements and

recommendations made during ADB Country Safeguards Review

Mission in October 2015 and the national environmental safeguards

consultant of ADB, the following corrective actions shall be

implemented (Table 1).

Table 1: Environmental and Corrective Action Plan

# Issue Action

Due Date as

given in last bi-

annual report

Status /

New Due

Date

Responsible for

implementation

/ monitoring

1.

Absence of

environmental specialist (ES)

within EPP

Develop and

approve ToR March, 2016 Done

EPP

Recruitment of ES May, 2016

July-

August,

2016

2.

Absence of Site-

specific Env.

Management and

H&S Plans for

Lot 2 and 3

Development of

Site-specific Env Management Plans

and H&S Plans for

Lots 2 and 3 May, 2016

September,

2016

Contractor/ EPP, PIC Site-specific Env

Management Plan

and H&S Plan for

Lot 3 has been

requested from CC

July -

August,

2016

3.

Temporary oil

and scrap metal

storage areas

Construct the site

for temporary

storage of old oil

and old equipment

June, 2016 September,

2016

Contractor/EPP,

PIC

4. GRM within

EPP structure.

Establishment of

GRM May, 2016

September,

2016 EPP, PIC

5.

No

environmental

management

track record

system.

Establishment of

track record

system; will be

added to the

monthly reporting

form to be done by

the contractor

May, 2016 September,

2016 EPP, PIC

6.

Emergency

Response Plan is

not in place

Set up an ERP for

oil removal from

cable systems, storage and

transport to Osh

TPP

September, 2016

EPP, PIC


7929A01/FICHT-16314427-v1 16

7. Quarterly audit

(III 2016) On-site inspection

September,

2016 PIC


7929A01/FICHT-16314427-v1 17

4. Findings and Recommendations

Mid of June 2016, Fichtner’s international environmental expert did an

audit inspection to Bishkek in order to evaluate the progress oft he

Project with respective teams of PIC and EPP (Phase 1 of Toktogul HPP

Rehabilitation Project). Because construction activities have not been

commenced yet a field trip to Toktogul was not performed.

The tender process to the entire Phase 1 of Toktogul HPP rehabilitation

has been finalized. Contractors for all 3 Lots are selected. Phase 1,

underwater inspections, has already been performed and the results are

available. Lots 2 and 3 are contracted. The design submitted by the

contractor of Lot 3 is reviewed and all revised versions are expected in

July. Design to Lot 2 is partly submitted and reviewed by the PIC. The

remaining documents to Lot 2 are expected to be submitted within the

next three months.

The first construction works (Lot 3) on site will start in September 2016

with installation of storage areas for old oil and old equipment (scrap

metal). The delivery of the first power transformer (Lot 2) is expected in

November/ December 2016 before winter season.

For the next period an Environmental and Corrective Action Plan was

set up in tabular form to give an overview what has to be done next to

bring the Project in line with all environmental requirements. As one

priority, EPP shall employ a qualified environmental specialist (ES) by

August, 2016 to get familiar with the Project and to monitor the contract

implementation with regards to Health, Safety and Environmental

Management issues. Funds for an employment of such a specialist are

allocated by ADB and specified in the IEE Report.

After start of construction works, it is foreseen to conduct a first on-site

audit in September 2016. During this survey also a training program for

PIU ES, Contractor’s HSE officer, and other engineering staff of PIU,

Consultant and Contractor involved in HSE issues on-site will be

executed.