Quarterly Social Monitoring Report

This report has been submitted to ADB by the Borrower and is made publicly available in accordance with ADB’s public communications policy (2005). It does not necessarily reflect the views of ADB.

Project Number: LN2612/EI7303 April to June 2014

PHI: Visayas Base-load Power Development Project

Prepared by

KEPCO SPC Power Corporation

Cebu City, Philippines

2 x 100 MW CEBU POWER PLANT

2014.07

Site Office

Quarterly Social Monitoring Report

(April–June 2014)

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Social Monitoring Report April – June 2014

Table of Contents

I. Introduction/Background 3 II. Land Acquisition and Involuntary Resettlement – Naga Land 3

III. Land Acquisition and Involuntary Resettlement – 138 kV T/L Project 5 IV. Social Development Plan and Corporate Social Responsibility Program 6 V. Attachments:

Attachment 1 Table of Status of ROW Cases in T/L

Project (as of July 24, 2014)

Attachment 2 Table and Photos of Implemented SDP and CSR Projects (April–June 2014)

Attachment 3 Photos of Public Consultations (3rd and

4th Qrtr 2013 and 1st and 2nd Qrtr 2014)

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Social Monitoring Report April – June 2014

I. INTRODUCTION/BACKGROUND A. Brief Project Description KEPCO SPC Power Corporation (KSPC) undertook the construction of a 2 x 100 megawatts (MW) CFBC power plant in Barangay Colon, City of Naga, Cebu. The project is standing in a 10-hectare land that is leased for 25 years from National Power Corporation (NPC). The project involves 2 resettlement issues: a) in the leased property called Naga Land; and b) along the Transmission Line (T/L) Project. Prior to construction period, resettlement of some informal settlers families just outside the lease land have been carried out as a joint effort by Barangay Colon, the then Municipal Government of Naga, NPC and KSPC. Out of 22 families, 17 families have accepted financial assistance provided and voluntarily moved their houses in the same vicinity outside the plant’s perimeter fence. Five families claim to have legal titles and during the construction phase remain to be partially encroaching in the leased land. NPC filed a civil case for recovery of possession of the areas occupied by these 5 families. Meanwhile, a social analysis conducted by Transco, now National Grid Corporation of the Philippines (NGCP), concluded that the proposed 138 KV T/L Project requires land acquisition and resettlement. The 0.90–kilometer transmission line from KSPC’s Cebu Power Plant Project to the New Naga Substation will affect 11 landowners, 1 tenant, 13 structures owners and 10 relocatee-households.

II. LAND ACQUISITION AND INVOLUNTARY RESETTLEMENT – NAGA LAND

A. Progress on Case Filed in Court vs. 5 Illegal Dwellers within Naga Land

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Social Monitoring Report April – June 2014

The Court already resolved the case filed by NPC vs. the five (5) Illegal Dwellers within Naga Land. Two of the defendants did not file answers to the complaint while the three others already entered into a Compromise Agreement with National Power Corporation (NPC). The Court approved the Compromise Agreement and resolved the issue on the two (2) other defendants, who were earlier declared in default for not filing an answer to the complaint.

B. Progress on living condition of 17 Resettlement Families The families living in the Resettlement Area are already insulated from direct contact with the land reclaimed using coal ash after the completion of the concreting project. They are prioritized in the different community outreach projects under the Social Development Plan and Corporate Social Responsibility (SDP and CSR) Program that KSPC implements every year. Among these programs are the provision of doctor that visits weekly in six (6) barangays nearest to the power plant to provide free health check up, the donation of basic medicines twice a year to augment the supplies provided by the local government and skills development training program to provide the residents livelihood and employment opportunities. To also help improve the sanitation and cleanliness of Colon, color-coded drums have been fabricated for the waste segregation of the host barangay of the plant. Forty (40) women from Barangay Colon completed the Hair Styling and Beauty Care Training conducted by KSPC through the Alternative Learning System (ALS) Program of the Department of Education (DepEd), the Technical Education and Skills Development Authority (TESDA) and local

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Social Monitoring Report April – June 2014

government units (LGUs). They are the fourth batch of completers of the annual skills development training program. KSPC has also been donating medical equipment and upgrading the facilities of the barangay health centers and the public schools to help improve the services they provide. KSPC has donated filing cabinet and refrigerator to Barangay North Poblacion Health Center for the safe keeping of medical records and preservations of vaccines and other perishable medicines. NPC-Colon Elementary School will be provided new school signage and road safety signs will be placed in the highway near the school for the safety of children. This school year, the budget for Scholarship Program was doubled in order to widen the coverage of the free education of its existing four (4) beneficiaries and be able to help additional poor but deserving public high school graduates in its host communities. KSPC also donated in June a brand-new ambulance to the City of Naga Government to augment the LGU’s existing fleet and help in the immediate response to emergency cases in the city. Meanwhile, as committed to the LGU partner, KSPC is conducting quarterly consultation meetings with the three nearest barangays of Colon, North Poblacion and Tangke to report to the communities the environmental monitoring results and update them of the different activities of the power plant, as well as get feedback and recommendations from the nearby residents. For the 3rd Quarter of 2013, the public consultations were conducted on the following schedules: Brgy. Colon, August 16; North Poblacion, August 22; and Tangke, August 23. For the 4th Quarter of 2013: Brgy. Colon, November 15; North Poblacion, November 14; and Tangke, November 22. For the 1st Quarter of 2014: Brgy. Colon, March 14; North Poblacion, March 7; and Tangke on March 21.

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Social Monitoring Report April – June 2014

For the 2nd Quarter 2014: Brgy. Colon, June 19; North Poblacion, June 26; and Tangke, June 20. Please see Attachment 3 During the consultations, the residents brought up the now minimal dusts observed during coal deliveries, request for opportunities in the local employment for laborer jobs and information on the upcoming community outreach programs and activities. KSPC personnel gathered the issues and immediately acted on these. Updates on the actions made were also reported to the residents in the subsequent consultation meetings.

III. LAND ACQUISITION AND INVOLUNTARY RESETTLEMENT – 138 kV T/L PROJECT A. Progress on the remaining ROW Issues Please see NGCP report on the latest Status of ROW Cases as of July 24, 2014 in Attachment 1.

IV. SOCIAL DEVELOPMENT PLAN AND CORPORATE

SOCIAL RESPONSIBILITY PROGRAM A. Progress on Implementation of Livelihood and

Community Development Programs for People Relocated from Naga Land and Project T/L

In fulfilling its commitment to uplift the lives of the residents of its host communities, KSPC continuously gives priority to the implementation of various programs and projects that are focused on health, education, environment and livelihood. Please see Attachment 2 (Implemented Community Relations Projects/Programs from April– June 2014).

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Social Monitoring Report April – June 2014

V. PROBLEMS AND FUTURE WORK PLAN

So far, no major problem has been encountered. All SDP and CSR activities are being carried out in coordination with the host communities and stakeholders from the planning stage up to actual implementation.

ATTACHMENT 1 NEW NAGA SUBSTATION & ASSOCIATED TRANSMISSION LINE PROJECT

(KEPCO Associated Lines) Status of Expropriation Cases

24July 2014

Case Title

Case

No./Court Date Filed

Presiding

Judge

Defendants’ Counsel

Handling

Lawyer

WOP

Remarks

D. KSPC Associate Lines –

4 cases

1 NGCP vs. Hrs. of Eugenio

dela Corte, namely: Eliseo

A. dela Corte, et.al.

CEB-36004

RTC 5

Cebu City

6-Oct-09 Judge

Castillo

(Pairing

Judge)

Atty. Michael

Yu

√ Documentation for the settlement of the case is being

processed. The copy of the Deed of Absolute Sale was

already sent to the defendants for their review and

signature. A new sketch plan has to be prepared since

the property has been subdivided among the co-

owners without the area affected delineated.

2 NGCP vs. Hrs. of Corazon

Ceniza

CEB-36361

RTC 12

Cebu City

9-Feb-2010 Estella

Singco

Atty.

Capanas

Defendants have been paid of the compensation.

Demand is made upon Atty. Labrado (counsel for

defendants) for the tax clearance certificate re payment

of estate taxes to complete the transfer of ownership.

15 NGCP vs. Amador

Anastacio

CEB-36326

RTC 14

Cebu City

29-Jan-

2010

Raphael

Yrastorza

ditto √ Prese tatio of defe da ts’ evide e o the just compensation is ongoing.

16 NGCP vs. AmparoAlforque

and Hrs. of Sergio

Alforque

CEB-36003

RTC 58

Cebu City

6-Oct-09 LynaAdvient

o

Atty. Rio

Bilocura

ditto √ Defe da ts’ proposal for settle e t is ei g evaluated.

ATTACHMENT 2

Implemented Community Relations Projects and Programs (April–June 2014)

Date Recipient/s Activity/Event Expenses

1 10 April 2014 Brgy. Colon SDP & CSR Program: "Operation Tuli" (Circumcision)

P 32,273.35

2 April-June 2014 Brgy. Colon & North Poblacion Communication Support for Coal Dust Monitoring in the Community (2nd)

P 6,000.00

3 April-June 2014 6 Barangays (Colon, Tangke, North Poblacion,Tuyan, Inayagan and Naalad)

SDP & CSR Program: Doctor's Barangay Visits (March 2014)

P 144,000.00

4 14 April 2014 Brgy. Colon, Tangke & North Poblacion

SDP & CSR Program: Donation of Medicines P 74,907.40

5 15 April 2014 Sitio Canhambay Brgy. Colon Financial Assist. for the Fiesta Celebration P 5,000.00

6 15 April 2014 Sitio Capayawan Brgy. Colon Financial Assist. for the Fiesta Celebration P 5,000.00

7 15 April 2014 Brgy. Colon Chapel Donation of Airconditioning Unit P 19,200.00

8 15 April 2014 Brgy. Colon Financial Assist. for the Fiesta Celebration P 40,000.00

9 22 April 2014 Barangay North Poblacion Donation of Paint for Clean & Green Program P 10,711.00

10 22 April 2014 Brgy. Colon Financial Assistance for the Basketball Tournament 2014

P 10,000.00

11 24 April 2014 Brgy. North Pob. Day Care Center

SDP & CSR Program: Installation of Window Screen

P 3,280.00

12 14 May 2014 Barangay Colon SDP:Fabrication of Color-Coded Garbage Drums for Waste Segregation Program

P 49,494.00

13 15 May 2014 NPC-Colon Elementary School & Tuyan National High School

Donation of Paints and other Materials for Brigada Eskwela (Opening of Classes) 2014

P 9,763.50

14 15 May 2014 Barangay Colon Donation of Snacks for the Clean-up Activity P 5,000.00

15 21 May 2014 Cebu Police Provincial Office Sponsorship for Criminal Investigation Course P 23,000.00

16 21 May 2014 Barangay Pangdan Financial Assistance for basketball Tournament P 5,000.00

17 21 May 2014 Barangay North Poblacion SDP & CSR: Donation of Equipment for the Upgrading of North Poblacion Health Center

P 18,500.00

18 22 May 2014 Archdiocesan Shrine of St. Francis of Assisi

Sponsorship for the 16th Summer Youth Camp of Naga Parish

P 10,000.00

19 22 May 2014 City of Naga-LGU Donation of Ambulance P 1,553,514.40

20 13 June 2014 Brgy. Colon Condolence Money to Indigent Resident P 3,000.00

21 13 June 2014 City of Naga-LGU Sponsorship for Naga Runners' Eco-Trail P 10,000.00

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13 June 2014 PNPAAAI-Region 7 Chapter Sponsorship for the Phil. National Police Training Program

P 20,000.00

23 20 June 2014 Sitio Cayam, Brgy. Colon Donation for the Construction of Sitio Cayam Chapel

P 50,000.00

24 24 June 2014 Brgy. Colon Condolence Money to Roberto Mañacap (Brgy. Tanod)

P 5,000.00

25 30 June 2014 4 KSPC Scholars from 3 Barangays

SDP: Financial Assistance for Scholarship Program (1st Semester)

P 75,000.00

26 30 June 2014 Barangay Naalad Financial Assistance for the Fiesta Celebration of St. Celebration of St. John the Baptist Chapel

P 5,000.00

PHOTOS OF COMMUNITY RELATIONS ACTIVITIES

OPERATION TULI (CIRCUMCISION)

DONATION OF MEDICINES TO 3 BARANGAYS

BRGY. COLON BRGY. NORTH POBLACION

BRGY. TANGKE

DONATION OF ambulance to the city of naga

government

Color-coded garbage drums for brgy. Colon’s waste segregation program

SUPPORT TO “Brigada eskwela” for the opening of classes

ATTACHMENT 3 PUBLIC CONSULTATIONS

3RD QUARTER 2013

4RD QUARTER 2013

BRGY. COLON

BRGY. COLON

BRGY. NORTH POBLACION

BRGY. TANGKE

BRGY. NORTH POBLACION

BRGY. TANGKE

1ST QUARTER 2014

2ND QUARTER 2014

BRGY. COLON

BRGY. COLON

BRGY. TANGKE

BRGY. TANGKE

BRGY. NORTH POBLACION

BRGY. NORTH POBLACION