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 October to December 2013

PHI: Visayas Base-load Power Development Project

Prepared by

KEPCO SPC Power Corporation

Cebu City, Philippines

2 x 100 MW CEBU POWER PLANT

2014.01

Site Office

Quarterly Social Monitoring Report

(October–December 2013)

2

Social Monitoring Report October – December 2013

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 Responsibilities Program 6 V. Attachments:

Attachment 1 Table of Status of ROW Cases in T/L Project (as of January 27, 2014)

Attachment 2 Table and Photos of Implemented SDP and CSR Projects (October–December 2013)

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Social Monitoring Report October – December 2013

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 October – December 2013

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. Since June 2012, a doctor has been visiting the Barangay Health Center of Barangay Colon twice a month to provide free health check-ups to the residents. The frequency of the doctor’s visits was increased to every week starting January 2013. KSPC partnered with the City of Naga Government for this Health Monitoring Program by shouldering the expenses for the honorarium of the doctor not just in Colon but in a total of six (6) barangays in the City of Naga. Aside from the doctor’s free health check-up, KSPC also set aside budget in 2013 for the donation of medicines to Barangays Colon, North Poblacion and Tangke to augment the supplies they are getting from the local government. Last May 2013, 28 out-of school youths of Barangay Colon completed the Pipe-Fitting Fabrication course 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 government units (LGUs).

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Social Monitoring Report October – December 2013

They are the third batch of completers under KSPC’s Skills Development Training Program. The two other trainings also done are Welding Fabrication and Food Preparation and Preservation. KSPC will implemented another skills development training, this time in cosmetology for the women sector of the barangay. KSPC turned over in November 2013 the motorized banca and headquarters to the fishermen association of Barangay North Poblacion, which can be used for their livelihood program and in guarding its water jurisdiction from illegal fishers. For the next school year, KSPC will double the budget for its Scholarship Program 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. A new program to address the problem of malnutrition among school children will also be implemented, as well as assistance for the Persons with Disability (PWDs) residents of the barangay. Meanwhile, as committed to the LGU partners, KSPC will continue the quarterly consultation meetings with the three nearest barangays of Colon, North Poblacion and Tangke to update the communities of the different activities of the power plant, as well as get feedback and recommendations from the nearby residents.

III. LAND ACQUISITION AND INVOLUNTARY RESETTLEMENT – 138 kV T/L PROJECT A. Progress on the remaining ROW Issues Please see the latest Status of ROW Cases as of January 27, 2014 in Attachment 1.

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Social Monitoring Report October – December 2013

IV. SOCIAL DEVELOPMENT PLAN

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 October–December 2013).

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

Status of Expropriation Cases, 27 January 2014

Case Title

Case

No./Court

Date

Filed

Presiding

Judge

DWaWﾐS;ﾐデゲげ Counsel

Handling

Lawyer

WOP

Remarks

D. KSPC Associate

Lines に 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

к Atty. Yu called early January 2014 to confirm the

computation of the real property taxes, indemnity bond,

capital gains and documentary stamp taxes for his discussion

┘ｷデｴ SWaWﾐS;ﾐデゲく WW ;ヴW ゲデｷﾉﾉ ┘;ｷデｷﾐｪ aﾗヴ Aデデ┞く Y┌げゲ aWWSH;Iﾆく Meanwhile, per Order of the Court dated 7 January 2014, the

Commissioners appointed in the case are directed to submit

デｴWｷヴ IﾗﾏﾏｷゲゲｷﾗﾐWヴゲげ ヴWヮﾗヴデ ┘ｷデｴｷﾐ Γヰ S;┞ゲ aヴﾗﾏ デｴWir receipt

of the Order.

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. However,

デｴW デヴ;ﾐゲaWヴ ﾗa デｴW ヮヴﾗヮWヴデ┞ ｷﾐ NGCPげゲ ﾐ;ﾏW I;ﾐﾐﾗデ ┞Wデ HW completed because we are still waiting for the clearance for

the estate tax from defendants.

15 NGCP vs. Amador

Anastacio

CEB-36326

RTC 14

Cebu City

29-

Jan-

2010

Raphael

Yrastorza

ditto к PヴWゲWﾐデ;デｷﾗﾐ ﾗa SWaWﾐS;ﾐデゲげ W┗ｷSWﾐIW ﾗﾐ デｴW ﾃ┌ゲデ compensation is ongoing.

16 NGCP vs.

AmparoAlforque

and Hrs. of Sergio

Alforque

CEB-36003

RTC 58

Cebu City

6-

Oct-

09

LynaAdviento Atty. Rio

Bilocura

ditto к We are still waiting for notice from the Court for the next

hearing schedule. (Note: Hearing on civil cases are deferred

after the earthquake last 15 November 2013. The Palace of

Justice is unsafe for occupancy and the courts are set to

transfer to another location.)

ATTACHMENT 2

Implemented Community Relations Projects and Programs (October–December 2013)

Date Beneficiary/ies Project Name Amount

1 01-Oct 2013 Brgy. Colon, North

Poblacion & Tangke Day Care Center

Financial Assistance for the

Participation to the Children’s

Month Celebration

12,000.00

2 Oct-Dec. 2013 Brgys. Colon, North

Poblacion, Tangke, Tuyan, Inayagan, Naalad

SDP & CSR Program:

Doctor’s Free Health Check-

Up in the Barangays

144,000.00

3 01-Oct 2013 NPC-Colon Elem. School

Financial Assistance for the

Drum & Bugle Band

6,000.00

4 08-Oct 2013 Naga Parish – St. Francis

of Assisi

Financial Assistance for the

Fiesta Celebration

10,000.00

5 09-Oct 2013 Brgy. North Poblacion’s Fishermen’s Association

Motorboat & Headquarters

Projects

92,018.00

6 29-Oct 2013

Naga City Jail

Financial Assistance for the

Celebration of National

Correctional Consciousness

Week

5,000.00

7 06-Nov 2013 Cebu Province

Donation for the Earthquake Victims

500,000.00

8 11-Nov 2013

KSPC Scholars (4) from

Brgys. Colon, North

Poblacion and Tangke

Scholarship Program 40,000.00

9 11-November

2013

Barangay Colon Indigent

Residents (3) Burial Assistance

12,000.00

10 11-November

2013

Victims of Typhoon

Yolanda in Bantayan Island

Donation of Relief Goods 100,000.00

11 19-Nov 2013 Cebu Province

Donation for the Victims of

Typhoon Yolanda 500,000.00

12 20-Nov 2013 City of Naga-LGU

Donation of 100 units Solar

Lamps from Korea

12 22-Nov 2013

Brgys. Colon, North

Poblacion and Tangke

Donation of Medicines 35,000.00

13 26-Nov 2013

Brgy. North Poblacion La

Purisima Concepcion

Chapel

Financial Assistance for

Fiesta Celebration 10,000.00

14 05-Dec 2013

Barangay North Poblacion

Health Center

Donation of BP Apparatus 8,500.00

16 09-Dec 2013

Barangay Colon

SDP & CSR Program:

Medical Mission

70,000.00

15 11-Dec 2013

Barangays Colon, North

Poblacion and Tangke

Christmas Activities and

Support for Host

Communities

100,000.00

PHOTOS OF COMMUNITY RELATIONS ACTIVITIES

DONATION FOR CEBU EARTQUAKE VICTIMS

DONATION FOR CEBU TYPHOON YOLANDA VICTIMS

DONATION OF SOLAR LAMPS TO NAGA-LGU

DONATION OF MOTORBANCA TO BARANGAY

FISHERMEN’S ASSOCIATION

MEDICAL MISSION FOR SENIOR CITIZENS

CHrISTMAS PARTY FOR INDIGENT CHILDREN IN THE

BARANGAYS