Environmental Monitoring Report...(New) GIS Substation o Construction of 220/132/11kV gas insulated substation at Barhabise SS1: Barhabise SS . PTDEEP 2 NEA-PSC 1.2. Project Progress

Environmental Monitoring Report

Semi Annual Monitoring Report January to June 2020

NEPAL: Power Transmission and Distribution Efficiency Enhancement Project Loan 3542 NEP

30 June 2020

Submitted To: Asian Development Bank Nepal Resident Mission Metropark, Kathmandu

Submitted By: Nepal Electricity Authority Project Management Directorate Matatirtha, Kathmandu

Prepared By: Power Grid Corporation of India Ltd. in association with PricewaterhouseCoopers Pvt. Ltd. (India) and Jade Consult Pvt. Ltd. Project Supervision Consultant

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. Your attention is directed to the “terms of use” section of this website. In preparing country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic areas 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.

Executive Summary

Asian Development Bank (ADB) approved Power Transmission and Distribution Efficiency Enhancement Project (PTDEEP) to enhance the transmission and distribution system and improve reliability and quality of electric supply in the Kathmandu valley. This project is loaned project of ADB and the project commissioning date is December 2021. Nepal Electricity Authority (NEA) will serve as the Executing Agency (EA) and will implement all the activities under the Asian Development Bank loan through its Project Management Directorate (PMD). The project will contribute to Nepal’s distribution system strengthening in the Kathmandu Valley and other major urban centers by scaling up distribution system efficiency and reliability, facilitating adequate power supply to meet ever-growing energy needs of the valley, increasing service reliability of the utility and building capacity for the overall distribution system development.

The Investment component and activities to be included in the project are:

• Sub-project 1: Kathmandu Valley Transmission Capacity Reinforcement project Construction of 132/11 kV gas insulated substations at:

Chapagaun Mulpani Phutung

• Sub-project 2: Lapsiphedi and Changunarayan Substation Construction Project Construction of new (220/132/11kV) gas insulated substation (GIS) at Lapsiphedi. Construction of new gas insulated substations (132/11kV) at Changunarayan

• Sub-project 3: 220/132kV Barhabise (New) GIS Substation Enhancement of Distribution networks in Kathmandu Valley Construction of 220/132/11kV gas insulated substation at Barhabise

• Sub-project 4: Enhancement of Distribution networks in Kathmandu Valley Enhancement of Distribution networks in Central and Northern Region of Kathmandu Valley Enhancement of Distribution networks in Eastern and Southern Region of Kathmandu Valley

• Sub-project 5: Delivery of Distribution Transformers

• Sub-project 6: Enhancement of Distribution Networks in Major Urban Centers of Nepal Enhancement of Distribution Networks in Major Urban Centers in Eastern Region of Nepal Enhancement of Distribution Networks in Major Urban Centers in Western Region of Nepal Enhancement of Distribution Networks in Major Urban Centers in Central Region of Nepal

Under the provision of then Environment Protection Act (EPA), 1996, then Environment Protection Rules (EPR), 1997 of Government of Nepal (GoN) and ADB Safeguard Policy Statement, 2009 Initial Environmental Examination (IEE) has been conducted for the substations of subproject 1 and 2 and approved by the concern authorized body. After the approval of environmental assessment i.e. IEE, subproject 1 and 2 of the project entered in the implementation phase. Land acquisition Phutung substation (SS) has been completed whereas land acquisition for Mulpani SS, Changunarayan SS and Lapsiphedi SS are under process. Land acquisition for the Chapagaun substation is in the process of land price negotiation. Counter survey, site levelling has been completed for Changunarayan, Mulapani and Phutung SS. But site levelling work is ongoing for Lapsiphedi SS.

Environmental Management Plan (EMP) has been prepared to avoid, minimize and mitigate potential negative impacts of the project and will be implemented in all stages (pre-construction, construction and operation & maintenance) of the project. Currently project activities are in different stages of document related prerequisites, land acquisition process, design and survey work, counter survey, site leveling works and approval of design drawing. All the project activities

will be carried out in compliance with EMP. Compliance status will be updated on further reports with the progress on construction activities. Regular monitoring work will be carried out in order to make effective implementation. Environmental safeguard related project activities are in compliance with covenants as regular follow up actions are being taken.

NEA has an existing procedure to receive inquiries and complaints about project related activities (developed for other ADB projects), as well as responding to such inquiries and complaints. Feedback from potentially affected persons (AP) has been used to establish a grievance redress mechanism (GRM) appropriate to the expected level of impacts. NEA has established a Grievance Redress Committee (GRC) to handle issues from project affected persons (APs), document issues raised and resolution of issues. The GRC is headed by the NEA Project Manager. Other members include chairpersons of the relevant rural municipality or municipality and representative of the APs. APs are given the opportunity to present his/her concerns/issues at the GRC. The GRM is based on five levels of action aimed at resolving issues as soon as possible (normally within 15 or 30 days). Till date, eight grievances regarding environmental issues have been recorded. The 4 grievances are resolved. Resolution of the 3 grievances are under process in the second level of GRM. Due to the lockdown, the GRC meeting is not conducted effectively to resolve the remaining grievances. However, 1 grievance are addressed as not possible.

The report intends to measure and demonstrate the compliance of various project activities with EMP and applicable regulatory framework.

ABBREVIATIONS AND ACRONYMS

ADB Asian Development Bank

AIDS Acquired Immune Deficiency Syndrome

AP Affected People

BOD Biological Oxygen Demand

CBO Community Based Organization

DoED Department of Electricity Development

EMP Environmental Monitoring Plan

EMR Environmental Monitoring Report

EHSMP Environmental Health and Safety Management Plan

FGL Formation Ground Levelling

FY Fiscal Year

GIS Gas Insulated Substation

GoN Government of Nepal

GRC Grievance Redress Committee

GRM Grievance Redress Mechanism

Ha Hectare

HH Household

HIV Human Immune deficiency Virus

IEE Initial Environment Examination

kV Kilo Volt

KVDA Kathmandu Valley Development Authority

NEA Nepal Electricity Authority

NGO Non-governmental Organization

NPR Nepalese Rupees

OHS Occupation Health and Safety

OPGW Optical Ground Wire

PM Project Manager

PMD Project Management Directorate

PTDEEP Power Transmission and Distribution Efficiency Enhancement Project

RoW Right of Way

RP Resettlement Plan

R&R Rehabilitation and Resettlement

SF6 Sulphur Hexafluoride

SPS Safeguard Policy Statement

SS Substation

US United States

Tables of Content Executive Summary ................................................................................................................. ii Tables of Content ..................................................................................................................... v List of Tables ............................................................................................................................ v List of Figure ............................................................................................................................ v List of Annex: ........................................................................................................................... v 1. Background ......................................................................................................................... 1 1.1. Project Description ....................................................................................................... 1 1.2. Project Progress Status and Implementation Schedule ................................................ 2 1.2.1. Progress Status .................................................................................................... 2 1.2.2. Implementation Schedule ..................................................................................... 5

2. Compliance to National Regulations ................................................................................... 6 3. Compliance to Environmental Covenants from ADB Loan Agreement ................................ 6 4. Compliance to Environmental Management Plan ................................................................ 6 5. Safeguards Monitoring Results and Unanticipated Impacts ...............................................10 6. Implementation of Grievance Redress Mechanism and Complaints Received from Stakeholders ..........................................................................................................................25 6.1. Grievance Redress Mechanism ..................................................................................25 7. Major Issues ......................................................................................................................26 7.1. Lapshiphedi, Changunarayan Substation Construction Project ...................................27 7.2. Kathmandu valley Transmission Line Reinforcement Construction Project .................27 7.3. Khimti-Bahrabise 200/400 kV Transmission Line Substation Project ..........................27 7.4 Enhancement of Distribution Network in Central & Northern Region of Kathmandu V.29 8. Conclusion and Recommendations ....................................................................................27 8.1. Conclusion ..................................................................................................................27 8.2. Recommendations ......................................................................................................28

List of Tables Table 1. 1: Details of Sub-projects and its components .............................................................. 1 Table 1. 2: Project progress status ............................................................................................. 2 Table 1. 3: Implementation Schedule ......................................................................................... 5 Table 6. 1: Environmental related recorded Grievances ............................................................26

List of Figure Figure 1: Monthly PM2.5 for 2018-2020 ......................................................................................10 Figure 2: Air Pollution Data of Kathmandu on 2020-06-30 ........................................................11 Figure 3: Air quality index map for Project Areas March 15, 2018 at 10:00AM ..........................11 Figure 4: Legend of Air Quality Index Map ................................................................................12

List of Annex: Annex 1: Status of compliance with loan and grants covenants Annex 2: Status of environmental safeguards during planning stage Annex3: Status of environmental safeguards during implementation stage

PTDEEP 1 NEA-PSC

1. Background

The Government of Nepal (GoN) and the Asian Development Bank (ADB) negotiated the loan on

19 May 2017 for Power Transmission and Distribution Efficiency Enhancement Project (PTDEEP)

and loan agreement was signed on 29th June 2017. The project is expected to be completed by

December 2021. The project will contribute to Nepal’s distribution system reinforcement in the

Kathmandu Valley and other major urban centers by scaling up distribution system efficiency and

reliability, facilitating adequate power supply to meet ever-growing energy needs of the valley,

increasing service reliability of the utility and building capacity for the overall distribution system

development.

The main aim of the Power Transmission and Distribution Efficiency Enhancement Project

(PTDEEP) is to enhance the distribution capacity and improve reliability and quality of electricity

supply in the Kathmandu valley by reducing distribution system overloads and technical and

commercial losses. This will be done through strengthening of the transmission grid capacity,

increase capacity, rehabilitating the distribution network in the project area and enhancing

operational and financial performance of NEA distribution centers.

1.1. Project Description

The project activity comprises (i) construction of six new substations, (ii) upgrading and burial of

distribution lines and other network components to the maximum extent possible, (iii) upgrading

of overhead distribution lines where burial is not possible, (iv) delivery of distribution transformers,

and (v) replacement of conventional meters with smart meters.

The PTDEEP project as a whole is categorized in four components. The details of project components along with its associated substation/ Distribution centers are mentioned in Table 1.1.

Table 1. 1: Details of Sub-projects and its components SN Sub-projects Components Substations/ Distribution

center

S1 Kathmandu Valley

Transmission Capacity

Reinforcement project

o Construction of 3 gas insulated

substation (132/11kV) at:

Mulpani

Phutung

Chapagaun & 1 GIS

SS1: Mulpani SS

SS2: Phutung SS

SS3: Chapagaun SS

S2 Lapsiphedi and

Changunarayan

substation construction

project

o Construction of new (220/132/11kV) gas insulated substation (GIS) at Lapsiphedi.

o Construction of gas insulated substation (132/11kV) at Changunarayan

SS1: Lapsiphedi SS

SS2: Changunarayan SS

S3 220/132kV Barhabise

(New) GIS Substation o Construction of 220/132/11kV gas

insulated substation at Barhabise

SS1: Barhabise SS

PTDEEP 2 NEA-PSC

1.2. Project Progress Status and Implementation Schedule

1.2.1. Progress Status

Currently, the project has entered the implementation stage. The progress made in the implementation under different PTDEEP subprojects components are summarized on Table 1.2:

Table 1. 2: Project progress status

Sub-project

Sub-Components Works Completed by June 2020 Works for the second half of 2020

S1 Kathmandu Valley Transmission Capacity Enhancement Project

SS1 Mulpani Substation

Soil investigation work completed. Site leveling is carried out. Superstructure drawings finalized. Boundary wall work commenced but left in between. Power transformers inspection completed.

Work at Mulpani discontinued due to design and associated problems with type of soil

Survey, Site leveling, Soil investigation, boundary wall and retaining wall at new proposed site.

SS2

Phutung Substation

Contour survey and Soil investigation work has been completed at Phutung S/S Site. The site leveling work is carried out, however FGL is yet to be achieved. Major equipment drawings like power transformer, GIS equipment has been approved. Dispatch of power transformer is under process.

Access road, boundary wall, retaining wall and piling works

SS3

Chapagaun Substation

Due to problem faced during negotiation with landowners, work could not commence at Chapagaon.

Survey, preliminary works and commencement of foundations at alternate site at Thimi

S4 Enhancement of

Distribution Networks

Kathmandu Valley

o Central and Northern Region of

Kathmandu Valley

o Eastern and Southern Region of

Kathmandu Valley

DC1: Ratanpark

DC2: Maharajganj

S5 Delivery of Distribution

transformers

o Delivery of Distribution

transformers

S6 Enhancement of

Distribution Networks in

Major Centers of Nepal

o Eastern Region of Nepal

o Central Region of Nepal

o Western Region of Nepal

PTDEEP 3 NEA-PSC

Sub-project


S2 Lapsiphedi and Changunarayan substation construction project

SS1

Lapsiphedi Substation

Contour survey and Soil Investigation

works (except plate load test) have

been completed. Site levelling work is

partially completed (cutting part).

Survey of approach road has been

completed.

Contract award after

re-bidding

S2

Changunarayan Substation

Site Leveling and contour survey works has been completed. Soil Investigation works at Changunarayan S/S has also been completed. Construction of retaining wall is almost completed.

Contract award after re-bidding

S3 220/132kV Barhabise (New) GIS Substation Enhancement of Distribution networks in Kathmandu Valley

Construction of 220/132/11kV gas insulated substation at Barhabise

The Contour Survey & Soil Investigation works has been completed at Barhabise S/S Site. The site leveling work is carried out, however FGL is yet to be achieved. Dispatch of Power & LT Transformer & EOT Crane is under process.

Completion of Site levelling, Retaining Wall, & Boundary Wall works. Construction of Type B & C Quarter Room Building. Commencement of Equipment foundation.

S4 Enhancement of Distribution Networks in Central and Northern Region of Kathmandu Valley

Central and Northern Region

Detailed survey work.

Cable laying and construction of panel foundation work is under progress at Tareveer, Shivapuri, Ganeshthan, Panipokhari, Golfutar feeder.

Overall progress 15%

.

HDD/MHDD/Open trench, HDPE pipe laying, foundation for feeder panels, RMU, Transformers, Cable laying and termination work

Eastern and Southern Region

Detailed survey work.

HDD/MHDD/Open trench, HDPE pipe laying, foundation for feeder panels, RMU, Transformers, Cable

PTDEEP 4 NEA-PSC

Sub-project


Cable laying and construction of panel foundation work is under progress at Danchi, Jorpati and Pasupati feeder.

Overall progress 15.5%

laying and termination.

S5 Delivery of Distribution Transformers

Supply of Distribution Transformers

Technical evaluation is under process

S6 Enhancement of Distribution Networks in Major Urban Centers of Nepal

Eastern Region (Biratnagar, Dharan, Itahari)

GIS mapping completed.

Load Growth forecasting for Biratnagar is completed.

Demand Forecast, system studies and DPR preparation.

Central Region (Janakpur, Hetauda, Birgunj, Kalaiya, Jitpur-Simara, Bharatpur, Lalitpur, Bhaktapur)

GIS mapping completed.

Load Growth forecasting for Janakpur, Hetauda, Birgunj, Kalaiya, Jitpur-Simara, Bharatpur, Lalitpur, Bhaktapur is completed.

Bhaktapur load flow studies completed and DPR is submitted

Demand Forecast and DPR preparation.

Western Region (Pokhara, Lekhnath, Butwal, Tulsipur, Gorahi, Nepalgunj and Dhangadi)

GIS Mapping Completed.

Load Growth forecasting for Pokhara, Lekhnath, Butwal, Nepalgunj

and Dhangadi is completed.

Demand Forecast and DPR preparation

PTDEEP 5 NEA-PSC

1.2.2. Implementation Schedule

The implementation schedule for the commissioning of this project is presented in below.

Table 1. 3: Implementation Schedule

PTDEEP 6 NEA-PSC

2. Compliance to National Regulations

According to the then Environmental Protection Act (EPA), 1996 and Environmental Protection Rules (EPR), 1997 of Government of Nepal (GoN) and ADB Safeguard Policy Statement, 2009, Initial Environmental Examination (IEE) is required for the substation project which requires the private land for the project activities. However, if the transmission line passes from protected areas (national park, wildlife reserves, conservation areas including Chure region), environmental impact assessment (EIA) is mandatory according to schedule 2 of EPR 1997.

Moreover, considering National Energy Crisis Alleviation and Electricity Development Decade concept note, Ministry of Energy, Water Resources and Irrigation has issued "IEE and EIA Working Procedures for Hydropower and Transmission Line Project, 2073 BS" effective from 2073 Kartik 4 (20 October 2016) to simplify and expedite environmental assessment approval process by assigning authority to Department of Electricity Development (DoED).

The preparation of IEE had been completed for the Lapsiphedi and Changunarayan substations from another project (Tamakoshi-Kathmandu TLP) and achieved approval from the authorized body. IEE study does not need to be prepared for Mulpani Substation, Phutung Substation & Chapagaun Substation under the subproject Kathmandu Valley Transmission Capacity Enhancement Project. As this project is under category B according to ADB policy, combined IEE for all 6 substations has been prepared which is enough for this project. According to Environmental Protection Rule 2020, if the proposed substation lies in conservation area, protected area, and its buffer zone, it requires IEE study to be conducted.

3. Compliance to Environmental Covenants from ADB Loan Agreement

Environmental safeguard related project activities are in compliance with covenants as given in Annex 1.

4. Compliance to Environmental Management Plan

The EMP has been developed as part of the environmental assessment to avoid, minimize, and mitigate potential negative impacts of the Project. The EMP comprises routine environmental monitoring to support proactive mitigation of any potential impact from construction and operations.

The environmental safeguard consultant from project supervision is regularly visiting the project sites to monitor the environmental compliances and is conducting regular meeting with project officials.

The EMP will be implemented in three stages of the project: i. Pre-construction, ii. Construction, iii. Operation and maintenance. Overall Environmental Compliance will be followed as the construction work begins. Currently, design, survey and soil test is completed at Mulpani and Phutung substation. Status of environmental safeguards during planning stage and implementation stage is attached in Annex 2 and 3 respectively.

Based on the approved EMP, the contractor has prepared the EHSMP report and submitted to PSC for the review. The PSC is reviewing the EHSMP report and will provide the observations/suggestions. The contractor has prepared the Standard Operating Procedure (SOP) and Safe Work Procedure (SWP) to resume the construction work at sites during the lock down due to COVID-19 pandemic.

Details of compliance to environmental management plan are provided in Table 4-1.

PTDEEP 7 NEA-PSC

Table 4-1: Compliance status to Environmental management plan

Activity Environmental Issues Compliance Status Remarks

Pre-construction Stage

Regulatory clearance and Permitting

Impacts on potentially sensitive sites: potential loss of productive agricultural

Being Complied with: Land acquisition has been completed in all s/s except Chapagaun S/S. In few s/s, compensation distribution is under process. For the restoration of income generation, training will be conducted which will be included in RP report. RP is being updated.

Regulatory clearance is not applicable.

Environmental Monitoring

Impact on Air Quality at project sites

Complied with. Pre-project level air quality monitoring had been carried out.

Baseline of air quality monitoring in pre project phase is given in section 5.

Construction Phase

Construction stage environmental monitoring

Inadequate/ unsafe working condition Environmental impairment at project sites

Complied with. environmental monitoring is ongoing for the Distribution Package. Status to be incorporated after construction related work progresses in SS package.

Compensatory clearance

Impact on Environmentally sensitive site, potential loss of productive agricultural and trees

Being Complied with: Land acquisition has been completed in all s/s except Chapagaun S/S. Compensation distribution is under process in few S/S. For the restoration of income generation, training will be conducted which will be included in RP report. RP is being updated.

Physical construction: manual labor and mechanized construction

Worker/ Operator and local safety (Noise) Equipment wear and tear

Distribution package-Complied with. Safety equipment are provided to worker/operator and are properly used during the construction work. SS package- Status to be incorporated after construction related work progresses.

PTDEEP 8 NEA-PSC


Health and safety

Injury and sickness of workers and members of the public Potential BOD and Fecal coliform contamination

Distribution package-Major points of EHS plan are implemented. However, improvement required in few areas in distribution package SS package-Status to be incorporated after construction related work progresses

Site clearance after completion of construction work & management of excavated soil at site to be improved.

Construction equipment maintenance

Wastewater from maintenance may cause soil and water contamination

Distribution package-Complied with. Construction equipment are well maintained. SS package- Status to be incorporated after construction related work progresses.

Physical construction: manual labor and mechanized construction

Dust, exhaust, and noise emissions from construction equipment

Distribution package-Complied with: Adequate safety gears (masks, glass, and boots) to worker and operator to affect less harm from construction equipment. SS package- Status to be incorporated after construction related work progresses.

Storage of chemicals and any hazardous materials

Possible spills resulting in contamination of soil, water, and air

Distribution package-Complied with. The chemicals and hazardous materials are well maintained. SS package- Status to be incorporated after construction related work progresses.

Construction waste management

Localized soil and water pollution due to inadequate management and control

Distribution package-Partially Complied with. The soil generated from the excavation are used for refilling however, remaining soil are not fully cleaned at construction site. SS package- Status to be incorporated after construction related work progresses.

The contractor should be instructed to clean the site after the construction work completed.

Environmental monitoring

Inadequate/unsafe working conditions Environmental impairment at project

Distribution package-Complied with. Regular environmental monitoring is carried out to monitor the unsafe working condition at project sites.

PTDEEP 9 NEA-PSC


sites, Impact in air quality at project sites.

Water Spraying is done to prevent dust pollution. SS package- Status to be incorporated after construction related work progresses.

Operation and Maintenance Phase

Routine operations and maintenance

Potential disturbance to other utility functions and vehicular traffic.

Status to be incorporated after Operation and Maintenance Phase commence

Electric shock Injury or death to the workers and public


Oil spillage Contamination of land/nearby water bodies


SF6 management

Fugitive emissions Status to be incorporated after Operation and Maintenance Phase commence

PTDEEP 10 NEA-PSC

5. Safeguards Monitoring Results and Unanticipated Impacts

The monitoring works begins along with construction activities. Currently, design work is in progress for all the substation sub projects (except Chapagaon where land acquisition is still under process, Lapsiphedi and Changunarayan where contract is terminated due to non-performance). Contract has been awarded for Smart Meters and supplies commenced. Procurement process is underway for distribution transformer. The result of pre project air quality monitoring is given below.

The concentration of PM2.5 of Kathmandu valley was measured in 2018-2020 and illustrated in graph below. The monthly average concentration of PM2.5 was found comparatively higher in winter (Jan 2020) 201 µg/m3 and lower in monsoon season 22µg/m3 (Jun2020). Detail is in figure 1.

Figure 1: Monthly PM2.5 for 2018-2020 Source link: http://aqicn.org/city/nepal/kathmandu/ratnapark/

The average hourly concentration of PM2.5 was recorded maximum at 8AM (22.88 µg/m3) and minimum at 11PM (10.01 µg/m3). The graph also indicates that concentration of PM2.5 was found quit fluctuating in below figure 2.

http://aqicn.org/city/nepal/kathmandu/ratnapark/

PTDEEP 11 NEA-PSC

Figure 2: Air Pollution Data of Kathmandu on 2020-06-30 Source link: http://pollution.gov.np/

Based on the legend of Air Quality Index Map, the air quality of project area measured on March 15 was found ranging from 151 to 300 indicating unhealthy to very unhealthy in air pollution level.

Figure 3: Air quality index map for Project Areas March 15, 2018 at 10:00AM

17.05

19.3919.55

22.88

18.51

15.8815.6816.0715.71

13.0912.813.59

18.3416.47

17.44

21.43

18.5117.6

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Hour Interval

Hourly Air Pollution Data of Kathmandu

http://pollution.gov.np/

PTDEEP 12 NEA-PSC

Figure 4: Legend of Air Quality Index Map

The project construction works will be carried out under these baselines and to reduce further environment quality degradation adequate mitigation measures have been suggested in IEE study report.

PTDEEP 13 NEA-PSC

Table 5-1: Construction activities and their mitigation measures

SN Sub- Components

Activities Mitigation Measures Remarks

S1 Kathmandu Valley Transmission Capacity Enhancement Project

SS1 Mulpani

Substation

Land Acquisition Fair compensation and R&R benefits are paid as per applicable regulations to all affected landowners in transparent way.

Land acquisition is completed.

Land Leveling and Clearing

Restoration Works, Drainage, Soil Disposal, Tree Cutting

Restoration works, soil disposal and tree cutting are not applicable. Drainage work is under process.

Access Road Up gradation

Leveling, Drainage, Stabilization

Project construction phase has

commenced. The mentioned

mitigation measures are

planned. Design of foundations

for major equipment / control

room building/ GIS Hall etc. are

yet to be submitted. Change of

site location is being

contemplated due to problems

associated with type of soil.

Foundation and Equipment Installation

Drainage, Leaching of Soil Prevention, Location of Access Road

Setting up of Workers Camps, Waste and Hygiene

Provision of Toilets, Drinking Water Facility, Drainage, Soak Pits, First Aid Kits, Waste Disposal and Cooking Gas,

Facility Setup, Air, Noise and Chemicals Issue

Storage Location minimum 50m away from water source, National Air and Noise Standards

Foundation, footing and Reinforced Cement Concrete Works

Prevention of leaching/ leaking by soil runoff and oil leakage from digging machine by periodic maintenance checks

Civil Construction works on foundation, Pathways, Control Room, Cable Trays

Clearing up of concrete, wooden waste and metal scrap after each day’s work and disposal in compliance with government environmental regulation. Inclusion of Fire Control Equipment

Switchyard earthing and structures, civil work foundation

Solid Waste Management and adequate drainage to prevent stagnation of water

PTDEEP 14 NEA-PSC

SN Sub- Components


Unloading and erection of transformers

Access road width to be maintained to accommodate vehicles transporting

Erection of Substation Components, transformers bays, line bays, incoming outgoing lines, terminating gantries

OHS Compliance. Adequate Survey to minimize the use of adjacent agriculture land requirement for incoming and outgoing lines. Also adequately compensated

Control Room, Transformer oil filling and storage battery as well as hazardous chemicals, SF6 leakage

Proper drainage facilities and impervious areas with storage Capacity of 110% spare oil. Together with SF6 Leakage prevention and detection equipment. Inclusion of firefighting equipment

Charging Power Transformer, Auxiliary Power Supply

To prevent leakage of transformer oil and sparking, concrete lined pits are to be erected to contain them and firefighting equipment are to be maintained

Communication, Power line Carrier Communication

Adequate safety measures to be included during installation of communication equipment

Practice of using Optical Ground Wire in Transmission line in contrast to traditional shield/ static/sky/ground wire in overhead transmission line has added benefit of optical fibers that can be used for telecommunications purposes. Associating preparations in substation with OPGW can serve dual purpose of protecting lighting strikes as well as

PTDEEP 15 NEA-PSC

SN Sub- Components


transmitting data provided as suggestion

Connecting terminating lines to substation

Soil slopes to be restored. Human environment, health and safety matters to be taken into consideration.

SS2 Phutung

Substation

Land Acquisition Fair compensation and R&R benefits as per applicable regulations paid to all affected landowners in transparent way.

Land acquisition completed.



Access Road Upgradation







planned. Design of foundations

for different equipment / control

room building / GIS Hall, etc.

are yet to be submitted.






Prevention of leaching / leaking by soil runoff and oil leakage from digging machine by periodic maintenance checks





PTDEEP 16 NEA-PSC

SN Sub- Components




Access Road having erosional and stability issues and cannot accommodate such vehicles without retention intervention










PTDEEP 17 NEA-PSC

SN Sub- Components




Soil slopes to be restored. Human environment, health and safety matters to be taken into consideration

SS3 Chapagaun Substation

Land Acquisition Fair compensation and R&R benefits as per applicable regulations shall be paid to all affected landowners in transparent way.

The problem encountered during land acquisition, so location of substation is likely to be shifted.



Project construction phase has not commenced.






Provision of Toilets, Drinking Water Facility, Drainage, Soak Pits, First Aid Kits, Waste Disposal and Cooking Gas









PTDEEP 18 NEA-PSC

SN Sub- Components













PTDEEP 19 NEA-PSC

SN Sub- Components





S2 Lapsiphedi and Changunarayan Substation Construction Project

SS1 Lapsiphedi Substation


Land acquisition for Lapsiphedi SS is under process. 39 APs have been compensated (NRs 390,009,375) and 5 APs are in the process of compensation.





In relation to this 3 km, locals have demanded supportive funds for another 15km road in the village in addition to support for local skill development, installation of 2 drinking water tanks, local health facilities, jobs and monastery.



Project construction phase has commenced. The mentioned mitigation measures are planned. The contract has been terminated for the Lapsiphedi SS due to non-performance





PTDEEP 20 NEA-PSC

SN Sub- Components





Clearing up of concrete, wooden waste and metal scrap after each day’s work and disposal in compliance with government environmental regulation. Inclusion of Fire Control Equipment’s










To prevent leakage of transformer oil and sparking concrete lined pits are erected to contain them and firefighting equipment are maintained

PTDEEP 21 NEA-PSC

SN Sub- Components



Adequate safety measures included during installation of communication equipment

Practice of using Optical Ground Wire in Transmission line in contrast to traditional shield/ static/sky/ground wire in overhead transmission line has added benefit of optical fibers that can be used for telecommunications purposes. Associating preparations in substation with OPGW can serve dual purpose of protecting lighting strikes as well as transmitting data provided as a suggestion



SS2 Changunarayan Substation


Land Acquisition Almost in complete stage. Out of 49 APs, 4 APs are yet to receive payment of compensation. NPR 316,926,562.5 has been disbursed.










planned. Construction of

Retaining wall has been



PTDEEP 22 NEA-PSC

SN Sub- Components




completed and Gabion wall is

under progress.

The contract has been

terminated for the

Changunarayan SS due to non-

performance.











Transformer oil filling and storage battery as well as hazardous chemicals, SF6

leakage


PTDEEP 23 NEA-PSC

SN Sub- Components






Practice of using Optical Ground Wire in Transmission line in contrast to traditional shield/ static/sky/ground wire in overhead transmission line has added benefit of optical fibers that can be used for telecommunications purposes. Associating preparations in substation with OPGW can serve dual purpose of protecting lighting strikes as well as transmitting data provided as suggestion



S3 Enhancement of Distribution Networks in Central and Northern Region of Kathmandu Valley

Fixing of Distribution Transformers and Accessories

Safety and distance from human reach to be maintained. Lines through private and cultivated land need to be avoided. Ensure physical and cultural resources are not adversely affected.

The project construction phase has commenced. Lines through Private land cultivated land are avoided. Well maintained in barricades, warning sign and covering at site provided. Excavated soil materials are used to refill but remaining soil are not placed properly at site.

Boring holes vertically and horizontally

Occupational Safety to be maintained, leakage of machine oil to soil to be avoided. Barricading and traffic diversion to the work zone to be maintained. Noise and vibration to avoid close to sensitive sites. Soil Management with minimal dust in the

PTDEEP 24 NEA-PSC

SN Sub- Components


ground to be worked with. Spraying of Water three times a day.

Effect of Noise and vibration is occurred while the construction work is done at night-time.

Restoration of excavated site

Warning Sign and covering of exposed areas.

S4 Enhancement of Distribution Networks in Eastern and Southern Region of Kathmandu Valley

Fixing of Distribution Transformers and Accessories

Safety and distance from human reach to be maintained. Lines through private and cultivated land need to be avoided. Ensure physical and cultural resources are not adversely affected.

The project construction phase has commenced. Lines through Private land cultivated land are avoided. Well maintained in barricades, warning sign and covering at site provided. Excavated soil materials are used to refill but remaining soil are not placed properly at site. Effect of Noise and vibration is occurred while the construction work is done at night-time.

Boring holes vertically and horizontally

Occupational Safety to be maintained, leakage of machine oil to soil to be avoided. Barricading and traffic diversion to the work zone to be maintained. Noise and vibration to avoid close to sensitive sites. Soil Management with minimal dust in the ground to be worked with. Spraying of Water three times a day.

Restoration of excavated site

Warning Sign and covering of exposed areas.

S5 Delivery of Distribution Transformers

Not applicable as this component only supply component and does not involve any site activity

S5 Enhancement of Distribution Networks in Major Urban Centers of Nepal

Not applicable as this component does not involve any physical activity

25

6. Implementation of Grievance Redress Mechanism and Complaints Received from Stakeholders

6.1. Grievance Redress Mechanism

NEA has an existing procedure to receive inquiries and complaints about project related activities (developed for other ADB projects), as well as responding to such inquiries and complaints. Feedback from potentially affected persons (AP) has been used to establish a grievance redress mechanism (GRM) appropriate to the expected level of impacts. NEA has established a Grievance Redress Committee (GRC) to handle issues from project affected persons (APs), document issues raised and resolution of issues. The GRC is headed by the NEA Project Manager. Other members include chairpersons of the relevant rural municipality or municipality and a representative of the APs. APs are given the opportunity to present his/her concerns/issues at the GRC. The GRM is based on five levels of action aimed at resolving issues as soon as possible (normally within 15 or 30 days). First Level of GRM: The first level of intervention will be informally to construction contractors and project implementation consultants, and then formally, if necessary, to the rural municipality or municipalities. Given the nature of the project outputs, the construction manager should be able to resolve most issues informally, possibly with assistance of project implementation consultants. The project implementation consultants will record: (i) the name of the person (s) making the complaint, (ii) the date, complaint was received, (iii) nature and location of the complaint, and (v) how the complaint was resolved (if resolved). This information will be forwarded to PMD and made available on request to the rural municipality. If the complaint or issue is not resolved informally, the AP may submit the complaint to the rural municipality. If the issue is not resolved within 15 days, it will be referred to the second level of GRM.

Second Level of GRM: If the grievance remains unresolved, the rural municipality will forward the complaints to the NEA PMD, with notification to the APs of this action. The PMD will answer queries and seek resolution regarding various issues including social, or livelihood impacts and environmental impacts. PMD will direct the project implementation consultants and construction contractors to undertake corrective measures in the field. Information previously collected on AP, date of complaint, etc., will be expanded to include the second-level efforts to resolve issues. If the issue is not resolved within 15 days, it will be referred to the third level of GRM.

The third Level of GRM is the GRC, which will meet when necessary with all costs of each hearing borne by the project. The GRC will suggest corrective measures at the field level and issue directions that these measures are implemented within 30 days. NEA PMD will assign a project safeguard specialist to act as the GRC secretary, responsible for processing and placing all documents before the GRC, recording decisions, issuing minutes of the meetings and taking follow-up action to see the formal orders are issued and the decisions are carried out. At this level, issues are expected to be resolved within 30 days.

Fourth Level of GRM: If the above process fails to adequately resolve the issue, the AP can request the GRC Secretary to forward the complaint to the District Coordination Committee (DCC) for review and recommended actions. The corrective measures should be implemented within 30 days.

Fifth Level of GRM: If all the above resolutions methods fail, the AP can seek legal redress through Nepal's judicial system or appropriate administrative system.

26

The grievance redress committee (GRC) has been established in the different subprojects of PTDEEP. However, the project has already recorded few grievances from the affected people. Some of them are also resolved through meaningful consultations and some are in the process of resolving in the second level of GRM. Due to the lockdown, the GRC meeting is not been conducted effectively to resolve the remaining grievances. The details grievances recorded during reporting period along with the responses of the project proponent are presented in below table. Table 6. 1: Environmental related recorded Grievances

SN Submitted Grievances/Requests Response Status

Changunarayan Substation

1 Protection of irrigation canal and

plants/trees near the entrance

location to the substation site (March

2016).

The project has ensured to protect

private and public properties.

Besides, the protection of irrigation

canal falls in disputed land.

Resolved

2 Demand for the distribution line by the

locals.

The Project has provided the cost

for the construction of distribution

line to the distribution department

of NEA. Distribution wing is

constructing the line.

Resolved

3 Construction of access road nearby

the substation for the locals’ easy

access to temple.

The project has assured to provide

certain percentage of cost for the

construction of access roads based

on the estimate provided by the

locals.

Resolved

4 Demand of small road access to the

field side

The project assured to consider in

the construction period.

Under process

Lapsiphedi Substation

1 Widening and improving the existing

road linking the project site and main

road at Jarsingpauwa (Jan 2016)

The project shall ensure widening

and improving the existing road

linking to main road. The scope of

this activity is defined to contractor.

- Detailed survey of approach road

completed. Construction of access

road not yet started

Under process

2 Enhancing the existing drinking water

supply system brought from about 2

km above the Lapsiphedi (Jan 2016)

The estimate has not been

provided by the local for the

enhancement of existing drinking

water supply.

Under process

3 (a) Locals have demanded to provide

the share benefits of 5000 per

affected household,

(b demanding to provide the job

opportunity according to skills,

(a) Not applicable as this is not

Hydro generation project as

referred by APs

(a)Not feasible.

(b)Resolved

27

7. Major Issues

7.1. Lapshiphedi, Changunarayan Substation Construction Project

The contract was terminated.

• Soil erosion at Lapsiphedi

• Resistance by villagers at Lapsiphedi

7.2. Kathmandu valley Transmission Line Reinforcement Construction Project

• In the absence of drain planning / construction, Rainwater will affect nearby settlements.

• Entry point and associated approach road for Phutung Substation could not be finalized due to objections raised by landowner.

7.3. Khimti-Bahrabise 200/400 kV Transmission Line Substation Project

• Due to presence of natural spring, there is issue on soil stability.

7.4. Enhancement of Distribution Networks in Central and Northern Region of Kathmandu Valley

• Lack of management of remaining excavated soil at site.

• Lack of cleaning of excavated soil after refilling.

• Improper placement of pipes on roadside.

• Poor placement of barricades at work site

• Blockage of roads for longer time than required.

8. Conclusion and Recommendations

8.1. Conclusion

The power transmission and distribution efficiency enhancement project (PTDEEP) is funded by the ADB and the project commissioning date is December 2021. The PTDEEP enhances the distribution capacity and improve reliability and quality of electricity supply in Kathmandu valley. The project comprises five components. Environmental assessment i.e. IEE of the subproject 1 and 2 has been completed and just entered into the implementation phase. Land acquisition of 4 substations (Lapsiphedi, Changunarayan, Phutung and Mulpani) has been carried out and land price is under negotiation at Chapagaun substation. Alternate site is being explored in place of Chapagaon. Compensation payment has been completed in Phutung SS whereas it is under process at Mulpani, Changunarayan and Lapsiphedi SS. 3 AP out of 21 in Mulpani SS, 4 APs out of 49 in Changunarayan SS and 5 APs out of 44 in Lapsiphedi SS are yet to be compensated. Counter survey, site levelling and soil investigation works have been completed in Changunarayan SS, Mulpani SS and Phutung SS. Contour survey and soil investigation works (except plate load test), site levelling and survey road approach have been completed on Lapsiphedi SS. Due to the problem faced during negotiation with land owners at Chapagaon,

(b) However, local manpower will

be given preference according to

skill through contractor.

28

alternate site at Harisiddhi, Lalitpur was explored. However, the cordial solution at Harisiddhi also did not materialize.

Environmental management plan has been developed to minimize potential negative impacts of the project activity. The project activities will be done in compliance to the EMP. Monitoring works should be carried out with construction activities as per EMP. The GRC is being established in different subprojects. The main aim of forming GRC is to address grievances of affected peoples and facilitate timely implementation of the project activities. Till date, eight grievances regarding environmental issues have been recorded. The 4 grievances are resolved. Resolution of the 3 grievances are under process. However, 1 grievance are addressed as not possible.

8.2. Recommendations

This report recommends to carry out project activities in time and meet the targets of second half of 2020. All the project activities at the phase of pre-construction, construction and operation and maintenance should be in compliance with EMP. Regular monitoring of the project activities should be carried out in order to make effective performance and minimize adverse impacts. GRC has been formed in all substations and grievances are being addressed with meaningful consultation. The major recommendations for the distribution packages are following:

• Proper management of remaining soil after refilling at site to make site as pre-project level.

• Maintain the barricades until and unless construction work completed to avoid severe accident case.

• The construction site should be cleaned with adequate water to avoid muddy road.

Annex 1: Status of Compliance to Environmental Covenants from ADB Loan Agreement

Covenants Responsible Agencies

Status of Compliance

Loan 3542

(a) The Borrower shall ensure, and cause NEA to ensure, that the preparation, design, construction, implementation, operation and decommissioning of the Project comply with: (i) all applicable laws and regulations of the Borrower relating to environment, health, and safety; (ii) the Environmental Safeguards; and (iii) all measures and requirements set forth in the respective IEE and EMP, and any corrective or preventative actions set forth in a Safeguards Monitoring Report.

(b) The Borrower shall ensure, and cause NEA to ensure, that (i) no proceeds of the Loan are used for Works located within the core and buffer zones of the Kathmandu Valley World Heritage Sites with potential adverse impact; and (ii) the Department of Archeology of the Borrower participates in the supervision of Works to ensure no adverse impact to the protected heritage sites.

(FA-Schedule 5, para 9)

NEA/GoN

a. Complied

b. Not Complied

Human and Financial Resources to Implement Safeguards Requirements

The Borrower shall make available, and NEA to make available, necessary budgetary and human resources to fully implement the EMP and the RP. (FA-Schedule 5, para 13)

NEA/GoN

Being Complied

Safeguards- Related Provisions in Bidding Documents and Works Contract

The Borrower shall ensure, and cause NEA to ensure, that all bidding documents and contracts for Works contain provisions that require contractors to:

(a) Comply with the measures and requirements relevant to the contractor set forth in the IEE, the EMP and the RP (to the extent they concern impacts on affected people during construction), and any corrective or preventive actions set out in a Safeguards Monitoring Report;

(b) Make available a budget for all such environmental and social measures;

(c) Provide the Borrower with a written notice of any unanticipated environmental, resettlement or indigenous peoples risks or impacts that arise during construction, implementation or operation of the Project that were not considered in the IEE, the EMP or the RP;

(d) Adequately record the condition of roads, agricultural land and other infrastructure prior to starting to transport materials and construction; and

(e) Fully reinstate pathways, other local infrastructure, and agricultural land to at least their pre-project condition upon the completion of construction.


NEA/GoN

Being Complied

Covenants Responsible Agencies

Status of Compliance

Safeguards Monitoring and Reporting

The Borrower shall clause NEA to do the following: (a) Submit semi-annual Safeguards Monitoring Reports to ADB and

disclose relevant information from such reports to affected persons promptly upon submission;

(b) If any unanticipated environmental and/or social risks and impacts arise during construction, implementation or operation of the Project that were not considered in the IEE, the EMP or the RP, promptly inform ADB of the occurrence of such risks or impacts, with detailed description of the event and proposed corrective action plan; and

(c) Report any actual or potential breach of compliance with the measures and requirements set forth in the EMP or the RP promptly after becoming aware of the breach.


NEA

a. Complied

Prohibited List of Investments

The borrower shall ensure, and cause NEA to ensure, that no proceeds of the Loan are used to finance any activity included in the list of prohibited investment activities provided in Appendix 5 of the SPS. (FA-Schedule 5, para 16)

NEA/GoN

Labor Standards, Health and Safety

The Borrower shall ensure, and cause NEA to ensure, that the core labor standards and the Borrower’s applicable laws and regulations are complied with during Project implementation. The Borrower shall include specific provisions in the bidding documents and contracts financed by ADB under the Project requiring that the contractors, among other things (a) comply with the Borrower’s applicable labor law and regulations and incorporate applicable workplace occupational safety norms; (b) do not use child labor; (c) do not discriminate workers in respect of employment and occupation; (d) do not use forced labor; and (e) disseminate, or engage appropriate service providers to disseminate, information on the risks of sexually transmitted diseases, including HIV/AIDS, to the employees of contractors engaged under the Project and to members of the local communities surrounding the Project area, particularly women. The Borrower shall strictly monitor compliance with the requirements set forth above and provide ADB with regular reports. (FA-Schedule 5, para 17)

NEA

Being Complied

Annex 2: Status of Environmental Safeguard during planning stage

S. N

. Name of Project or Subproject

Enviro

nm

enta

l scre

en

ing is c

arr

ied

out?

(Y

es o

r N

o)

Enviro

nm

ent cate

gory

of

the

pro

ject /

subpro

ject

(A/B

/C/F

I)

EA

RF

is p

repare

d (

if a

pp

licable

)

(Yes/N

o)

EIA

/IE

E/D

DR

with E

MP

is

pre

pare

d (

Yes/N

o)

AD

B a

ppro

ved E

IA/IE

E w

ith E

MP

(Yes / U

nder

Revie

w /

Not

Yet

Due/O

ver

Du

e)

Govern

men

t ap

pro

ved E

IA/I

EE

with E

MP

(Y

es/ U

nder

Revie

w /

Not Y

et

Sub

mitte

d)

Safe

guard

monitori

ng a

nd

coord

ination m

echa

nis

m

esta

blis

he

d

(Y

es/N

o)

GR

C is e

sta

blis

hed

(Yes/N

o)

Auto

mate

d s

afe

gu

ard

mon

itoring

syste

m c

usto

miz

ed (

Yes//

No)

EM

P c

ost in

ap

pro

ved d

ocu

ment

is

inclu

ded

in

BO

Q a

s a

n ind

ivid

ua

l

item

(Y

es/N

o)

Remarks

1 220 kV Lapsiphedi SS and 132 kV Changunarayan S/S

Yes B No Yes Yes Yes No Yes No No

Details are for Changunarayan S/S. Lapsiphedi S/S is included in the IEE of Tamakoshi-Kathmandu TLP.

2 Design, Supply and Installation of 132kV GIS Substation in Kathmandu Valley

Yes B No No Yes No No Yes No No Contract Cost includes the EMP cost

3 Design, Supply and Installation of Gas Insulated 220kV Barhabise Substation

Yes B No Yes Yes Yes Yes No No No Barhabise S/S is included in the IEE of Tamakoshi-Kathmandu TLP.

4 Enhancement of distribution network in Central & Northern region of Kathmandu Valley

NA Yes NA No No

5 Enhancement of distribution network in Eastern & Southern region of Kathmandu Valley

NA Yes NA No No

Note: EIA- Environmental Impact Assessment; IEE- Initial Environmental Examination; DDR- Due Diligence Report; EMP- Environmental Management Plan; GRC- Grievance Redress Committee; BOQ- Bill of Quantity, NA=Not Applicable

Annex 3: Status of Environmental safeguard during implementation phase S

ub

pro

ject

Compliance to Environmental Management Plan* Grievances

Co

rre

cti

ve A

cti

on

Pla

ns a

re p

rep

are

d a

nd

imp

lem

en

ted

(Y

/N)

En

v c

om

pli

an

ce r

ep

ort

ing

is m

ain

tain

ed

(Y/N

)

Rem

ark

s

Physical Biological Socio-economic

So

il M

an

ag

em

en

t C

om

plia

nce in

%)*

* L

an

dslid

e p

rote

cti

on

wit

h B

io-e

ng

g

(com

plia

nce in %

)**

Dra

inag

e M

an

ag

em

en

t (c

om

plia

nce

in %

)**

Oth

ers

as

per

EM

P

(s

pe

cify)

Compensatory

Plantation

Fir

ew

oo

d is u

sed

fo

r co

okin

g a

nd

heati

ng

(Y

/N)

Oth

ers

as

per

EM

P (

specify)

Occupational Health and Safety

Community structures

are compensate

d / reconstructed (progress in % of total estimated work)***

Oth

ers

as

per

EM

P (

specify)

No

. o

f g

riev

an

ce

s d

ocu

men

ted

No

of

gri

ev

an

ce

s r

eso

lve

d

No

of

gri

ev

an

ce

s u

nd

er

pro

ces

sin

g

Targ

et

(Nos.)

Rep

lan

ted

(Nos.)

Safe

ty

Gears

are

su

ffic

ien

t

an

d u

sed

(Y/N

) L

ab

ors

are

insu

red

(Y/N

) L

ab

or

an

d

wo

rk

cam

ps a

re

healt

hy

an

d h

ave

san

itary

facilit

ies

(Y/N

) C

om

mu

nit

y S

tru

ctu

re

1

Co

mm

un

it

y S

tru

ctu

re

2

220kV Lapsiphedi SS and 132kV Changunarayan S/S

20 20 20 NA NA N A Y A NA NA Y Y Foundation work yet to be started.

Design, Supply and Installation of 132kV GIS Substation in Kathmandu Valley

0 0 0 NA NA N A Y A NA NA A Y

Foundation works yet to be started.

Design, Supply and Installation of Plants for Gas Insulated 220kV Barhabise Substation

45 60 45 NA NA N Y Y Y NA NA Y Y Foundation work yet to be started.

Photo Log

Temporary access road progress at phutung S/S site (KVTCRP). RMU Wall Casting work carried out for RMU

Site Inspection and Dicuss on issues with Contractor(KEI) and by the Enviromentalist at Budanilkantha site, Maharajgunj DC

Work going on to charge UG cable at Pasupati Feeder in presence of NEA staff

Site Levelling works on Phutung site.

Thermal Scan of labours before starting the work at Maharajgunj Distribution Centre.

Cable looping around E1 panel at Chahabil Site

Compaction work done with hand rammer at Mitrapark, Chahabil