1

Environmental Monitoring Report

#1 Semi Annual Report June 2018 Project No. 46390-002

MYA: Power Transmission Improvement Project

230kV THIDA-THAKETA-KYAIKASAN TRANSMISSION LINES

Prepared by the Ministry of Electricity and Energy (MOEE) for the Environmental Conservation

Department (ECD) of the Ministry of Natural Resources and Environmental Conservation (MONREC)

and the Asian Development Bank in compliance with the Environmental Conservation Law and the

Environmental Impact Assessment Procedures (2015).

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.

2

SEMI-ANNUAL ENVIRONMENTAL

MONITORING REPORTJANUARY – JUNE 2018

MINISTRY OF ELECTRICTY AND ENERGY DEPARTMENT OF POWER TRANSMISSION AND SYSTEM CONTROL

Naypyitaw, Myanmar

LOAN 3330

MYANMAR: POWER TRANSMISSION IMPROVEMENT

PROJECT

3

Table of Contents

A. INTRODUCTION .................................................................................................................... 4

B. OBJECTIVES OF THE PROJECT ............................................................................................... 4

C. PURPOSE OF THE REPORT .................................................................................................... 4

D. PROJECT INFORMATION ...................................................................................................... 4

E. PROJECT COMPONENTS ....................................................................................................... 5

F. STATUS OF PROJECT ............................................................................................................. 5

Transmission Lines ................................................................................................................... 5

Substations .............................................................................................................................. 7

G. INSTITUTIONAL READINESS ................................................................................................ 14

H. LOAN CONTRACTUAL OBLIGATIONS ON ENVIRONMENT SAFEGUARDS ............................ 14

I. DESIGN AND ENGINEERING................................................................................................ 16

J. ENVIRONMENT SAFEGUARDS ACTIVITIES UNDERTAKEN FROM JANUARY TO JUNE 2018 17

K. CONCLUSION ...................................................................................................................... 19

L. RECOMMENDATIONS FOR NEXT REPORTING PERIOD ....................................................... 20

4

A. INTRODUCTION

1. The Republic of the Union of Myanmar, through the Ministry of Electricity and Energy (MOEE), requested the Asian Development Bank (ADB) to partially finance the Power Network Improvement Project. The project aims to improve the reliability of Yangon’s power transmission system. The ADB approved the loan in November 2015 to support the country’s economic growth, improve electricity supply, and to help meet the government’s poverty reduction objectives. 2. The project will be implemented by the Ministry of Electricity and Energy (MOEE) as Executing Agency and the Department of Power Transmission and System Control (DPTSC) as Implementing Agency. 3. The project will comprise of: (i) construction of a 230kV power transmission line including 230kV transmission lines and substations for the Yangon region and (ii) strengthening of capacity of the staff of the MOEE in implementing ADB projects.

B. OBJECTIVES OF THE PROJECT

4. The project’s impact will be the economic and social benefits to residential, commercial, and industrial consumers in the Yangon region from reliable and adequate supply of electricity. The outcome will be improved reliability of the Yangon region’s power transmission network.

C. PURPOSE OF THE REPORT

5. The project has been assigned Environment Category B pursuant to the ADB’s Safeguard Policy Statement (2009). An Initial Environmental Examination (IEE) Report has been prepared in 2014 during the project preparatory technical assistance (PPTA) and this has been updated to reflect the changes in the alignment of the transmission lines. 6. This Environmental Monitoring Report covers the period January to June 2018. The report aims to provide an overview of the project status and the implementation of environment safeguards commitment under the loan.

D. PROJECT INFORMATION

Name of Project Myanmar: Power Transmission Improvement Project

Loan No. 3330 Executing Agency MOEE

Implementing Agency DPTSC

Monitoring Period (month/year)

January – June 2018

Report No. 1 Date of Report July 1, 2018

Environment Categorization

B

5

E. PROJECT COMPONENTS

7. The original scope of the project consists of (i) construction of 230kV transmission line between Thida and Thaketa substations and 230 kV transmission line between Thaketa and Kyaikasan substations; (ii) extension of switchyard of the existing 230kV Thaketa substation to accommodate the new 230kV transmission lines; (iii) upgrading of existing 66kV Kyaikasan substation to 230kV substation; and (iv) construction of new 230kV substations at South Okkalapa and West University.

F. STATUS OF PROJECT

8. Following further evaluation of the project, changes in the transmission line alignment were introduced to reduce environmental and social impacts (i.e. community safety, urban disturbance, resettlement and land acquisition). The revised scope of the project is summarized in Table 1.

Table 1: Summary of Project Components

Project component

Description Location

Transmission lines

230kV Thaketa-Kyaikasan double circuit transmission line, 9.2 km

230kV Thida-Thaketa double circuit transmission line, 8.1 km

Botahtaung Township Thaketa Township Mingalar Taung Nyunt Township Yankin Township Tamwe Township

Substations New South Okkalapa substation, 230/66kV

Miyangon Township

New West University substation, 230/33kV

Htantabin Township

Switchbays at Kyaikasan substation, 230/66kV

Tamwe Township

Extension of Thaketa substation with two 230kV line feeder bays

Thaketa Township

Transmission Lines

9. The new transmission lines will be constructed as a 230kV double circuit line. The proposed towers will be steel poles using light composite post insulators and an aluminum conductor composite core (ACCC) conductor. The transmission lines will be entirely monopole overhead lines except for lattice towers crossing two sections at Pazundaung river. The lines shall be of compact design, with relatively short nominal span to minimize sags and conductor sway and hence reduce the forces on the poles, enabling smaller diameters, reduced height, and reduced required right-of-way. Table 2 presents the details of the transmission lines.

6

Table 2: Details of the 230kV Transmission Lines

Parameters Thida-Thaketa TL Thaketa-Kyaikasan TL

Total Length 8.1 km 9.2 km

Total number of towers (monopoles)

61 79

Average height of suspension poles

23 – 28 m 23 – 36 m

Lattice towers 2 lattice towers for Pazundaung River crossing with 2 anchor towers

2 lattice towers for Pazundaung River crossing with 2 anchor towers

Foundations Standard drilled reinforce concrete circular caissons with anchor bolts; reinforced concrete shaft with bottom slab; driven piles with cap slab

Townships to be traversed by the transmission line

Botahtaung Township Thaketa Township Mingalar Taung Nyunt Township

Thaketa Township Yankin Township Tamwe Township

230kV Double Circuit Transmission Line between Thida and Thaketa Substations

10. The new Thida-Thaketa transmission line alignment will avoid a section of the Shukhinthatar Myo Pat Road where there are a number of shops that will be affected. Instead of connecting to the existing Thida substation through Yamo Nnar Road and Maha Bandoola bridge, the new proposal is to connect the transmission line to a proposed new 230/66kV Thida substation1 at a property owned by Myanma Oil and Gas Enterprise (MOGE) under Ministry of Electricity and Energy (MOEE). 11. The new alignment will be located along the right-of-way of the existing 66kV overhead transmission lines in the road easement of Shukhinthatar Myo Pat Road and then towards the vacant land owned by the Navy near the Yangon waterpark recreation area where it crosses the lower Pazundaung River. The line will then follow the easement of the Than Lyet Soon Road and connect to a proposed new Thida substation. Figure 1 presents the alignment of the 230kV Thida-Thaketa transmission line. 12. The steel pole foundation for the monopole towers will be made of concrete, cast in-situ, drilled pile foundation or driven piles with cap slab. When the line crosses the Pazundaung River, lattice towers will be constructed on the banks to support the transmission lines.

230kV Double Circuit Transmission Line between Kyaikasan and Thaketa Substations

13. The new double circuit 230kV transmission line connecting the Kyaikasan and the Thaketa substations will have a total length of 9.2km. A section of the line will be rerouted to follow the easement of the existing Yangon circular railway. This realignment will avoid the original plan along Waizayandar Road and Thanthumar Road where there is a proposed skyway to be

1 The new 230/66kV Thida substation will form part of another project to be funded by ADB.

7

developed in the future. This will also avoid impacts to a main water supply line and billboards of YCDC.

14. From Kyaikasan substation to Moe Kaung Road, the new transmission line alignment will follow the Bauk Thaw Station Street instead of the Pyitharyar Road from Moe Kaung Road. This realignment will avoid the tall buildings and congested areas at the narrow Pyitharyar Road. Along the Bauk Thaw Station Street, the design of the line will be on the one side of the steel pole (cantilever type) on the opposite side from the buildings to maintain safety clearance. 15. From the railway easement, the line will cross the upper Pazundaung River and will be along the easement of Aye Yar Wun Main Road until it reaches the Thaketa substation. The line will follow the Aye Yar Wun Road easement instead of the original plan of building towers along the easement of Pazundaung River. The new alignment will avoid residential buildings that have been built near the river. Figure 2 presents the alignment of the 230kV Thaketa-Kyaikasan transmission line.

16. Similar to the Thida-Thaketa transmission line, the line will be supported on steel monopoles with short nominal spans to reduce sags and reduce diameter at the bottom. Lattice towers will be designed at the banks of upper Pazundaung River to support the line.

Substations 17. The project includes two new 230kV substations, i.e. (i) South Okkalapa and (ii) West University and extension of two existing substations (Kyaikasan and Thaketa) to accommodate the 230kV Thida-Thaketa-Kyaikasan transmission lines. The South Okkalapa and West University substations will be connected to other existing transmission line grid. Existing government land were identified for the new substations. Works on all the substations will include equipment control and protection, SCADA, fiber optic telecommunications, cabling, grounding, drainage system, fence, gate and guardhouse. Details on each substation are discussed below:

230kV South Okkalapa Substation

18. The new 230kV South Okkalapa substation will be located at No. 8 Ward at Miyangon Township in Yangon Eastern District. The substation will occupy an area of about 2.4818 hectares within the property along the Than Thu Mar Road that is owned by the Ministry of Communications and Information Technology (MCIT). The new substation will be looped into the 230kV line of Thaketa substation to Hlawaga substation. Figure 3 present the location and layout of the 230kV South Okkalapa substation.

230/66/11 kV West University Substation

19. The new 230/66/11kV West University substation will occupy an area of about 1.5 hectares within the 34 hectare property that is owned by MOEE at Pauk Village in Htantabin Township, Yangon Northern District. A 445m x 15m access road will be built going to the West University substation site from the village road as part of the project. Figure 4 presents the location of the 230/66/11 kV West University substation.

230kV Kyaikasan Substation

20. The 230kV Kyaikasan substation will be built in a vacant area, adjacent to the existing 66kV Kyaikasan Substation. The 230kV substation will occupy an area of about 0.9 ha in Tamwe

8

Ghi Kha Ward in Tamwe Township. The site is adjacent to the property of the Ministry of Sports. The 230kV substation will receive the 230kV Thaketa-Kyaikasan transmission line.

Extension of 230kV Thaketa Substation

21. The work on Thaketa substation will consist of installation of new equipment and transformer bays required to connect the new 230kV line from Thida substation to Kyaikasan substation. The substation will be located in the vacant area of the existing substation and extend towards the fence, near the MOEE housing at No. 9 Ward, Thaketa Township. The substation will consist of the following works:

Two (2) 230 kV line feeder bays (fully equipped) Extension of substation power supply: MV and LV AC/DC distributions, battery systems Control and protection, SCADA, fiber optic telecommunications Cabling, grounding Civil works (foundations etc.). Dismantling of existing equipment for extension.

9

Figure 1: Section of transmission line from Thida substation to Thaketa substation

10

Figure 2: Section of transmission line from Thaketa substation to Kyaikasan substation

11

Figure 3: Location of South Okkalapa Substation

12

Figure 4: Site of West University Substation

13

Figure 5: Location of 230kV Kyaikasan substation

14

G. INSTITUTIONAL READINESS

22. A Project Implementation Unit (PIU) has been organized at DPTSC. The DPTSC has appointed Dr. Kyaw Swar Soe Naing, Director (Implementation) of the Power Transmission Projects Department (PTP) to oversee the environment and social safeguards of the project. He will be assisted by U Myo Min Tun, Deputy Director, PTP and three other staff. Below is the composition of the team who will be trained to oversee the safeguards implementation. Additional members may be appointed for training as the project progresses.

a) Dr. Kyaw Swar Soe Naing, Director (Power Transmission Project Department, DPTSC Head Office)

b) U Myo Min Tun, Deputy Director (PTP, DPTSC Head Office) c) U Nay Min Oo, Assistant Director, Project Manager (Civil) Southern Office, DPTSC) d) Daw Ngu War Mon, Assistant Director (PTP, DPTSC Head Office) e) Daw Shwe Yi Lwin, Staff Officer (PTP, DPTSC Head Office).

Item Status

(Completed/ Ongoing/NA)

Follow-up Required

(Y/N)

Completion Deadline

1. Environment safeguards unit organized at PIU/DPTSC?

Yes - -

2. PIC mobilized? No For follow-up 3. Civil works contractor

mobilized? No For follow-up

H. LOAN CONTRACTUAL OBLIGATIONS ON ENVIRONMENT SAFEGUARDS

Loan Condition Status Follow-up Required

(a) The MONREC has granted final approval of the Project (sec. 6)

Ongoing. Project Proposal was submitted to ECD on April 10, 2018.

MOEE to submit the IEE to ECD.

(b) The Borrower has incorporated the relevant provisions from the EMP into the Works Contract.

Updated EMP was prepared and included in the bid documents.

-

The Borrower shall 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 Borrower relating to environment, health and safety; (b) the Environmental Safeguards set out in ADB’s Safeguard

Construction has not started

For follow-up during construction.

15

Loan Condition Status Follow-up Required

Policy Statement; and (c) all measures and requirements set forth in the IEE, the EMP, and any Report. Make available a budget for all such environmental and social measures (25,b)

Budget for environmental monitoring / management has been integrated in the updated EMP. The total estimated cost to implement the EMP is US$25,000, of which $14,500 is for the transmission lines and $10,500 for the substations. The cost of the EMP includes an indicative budget of $2,000 for training and $6,000 for the acquisition of six EMF meters.

Validate provision of budget of contractor and PIC for environmental management and monitoring.

Provide a written notice of any unanticipated environmental or resettlement risks or impacts that arise during construction, implementation or operation of the project (25, c)

Construction has not started.

For follow-up during construction

Adequately record the condition of roads, agricultural land and other infrastructure prior to start of transport materials and construction.

Survey of sensitive receptors was conducted on 21 – 29 March 2018. Site assessments and identified impacts are in the updated IEE.

Continue coordination of YCDC, stakeholders and other agencies.

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

Include in the updated EMP

For follow-up during construction

Submit semi-annual safeguards monitoring report to ADB and disclose relevant information from such reports to affected persons

This is the first semi-annual monitoring report of the project.

Submit the next SEMR for July-December 2018.

16

Loan Condition Status Follow-up Required

Labor standards, health and safety of workers

Occupational health and safety provisions are included in the updated EMP of the transmission lines and substations.

For follow-up during construction

I. DESIGN AND ENGINEERING

Requirement Status

(Completed/ Ongoing/NA)

Follow-up Required

(Y/N)

Remarks

TRANSMISSION LINES Updated IEE and EMP prepared

Completed Y For review by DPTSC

Updated IEE and EMP submitted to ADB

No Y IEE already prepared and will be submitted to ADB after DPTSC review

IEE of TL for ECD prepared Completed Y For review by DPTSC before submitting to ECD Follow-up submission of IEE to ECD.

Final IEE and EMP prepared based on final detailed engineering design

No Updated IEE and EMP to be checked again during DED

Project’s Grievance Redress Mechanism established

Completed For monitoring during implementation

Project and pole locations disclosed to townships & affected stakeholders

Completed N 6 follow-up consultations with total of 294 participants were held on March 12-20, 2018.

Spot survey with YCDC, Myanmar Railway on affected structures

Completed Y To continue during DED

Survey of sensitive receptors based on detailed design

Completed Y To continue during DED

Coordinate with other relevant agencies (Port Authority, Yangon Naval Command, Ministry of Communication, etc.)

Ongoing Y

Training on EMP and environmental monitoring

No Y To be undertaken when PIC is engaged.

Baseline environmental monitoring by PIC (ambient air, noise, water quality)

No Y To be undertaken during DED

Government permits/approvals secured

No Y To be undertaken during DED and prior to construction

17

Requirement Status (Completed/ Ongoing/NA)

Follow-up Required

(Y/N)

Remarks

Traffic management plan prepared and approved by YCDC

No Y To be undertaken during implementation

SUBSTATIONS Oil pits at transformer areas provided

No Y To be checked during DED

Materials and waste segregation areas at substation compound provided

No Y To be checked during DED

Training on EMP and environmental monitoring

No Y To be undertaken when PIC is engaged.

Baseline environmental monitoring by PIC (ambient air, noise, water quality)

No Y To be undertaken during DED

J. ENVIRONMENT SAFEGUARDS ACTIVITIES UNDERTAKEN FROM JANUARY TO JUNE 2018

23. Coordination with the Environmental Conservation Department (ECD). The MOEE has coordinated with the Environmental Conservation Department (ECD) of the Ministry of Natural Resources and Environmental Conservation (MONREC) to ensure that the project complies with the requirements of the Environmental Conservation Law. 24. In June 2015, an IEE was submitted by MOEE to the Environmental Conservation Department (ECD). The ECD sent a letter to MOEE on 04 November 2015 to revise certain sections of the IEE, specifically on the recommended standards of electric and magnetic field intensity and also asked for clarification on the area of the new South Okkalapa substation and West University substation. 25. Because of the revised alignment of the transmission line, the MOEE submitted a new Project Proposal to MONREC in compliance with the EIA Procedure (2015) on April 10, 2018. Based on the evaluation of the ECD, the project is required to prepare an IEE for the transmission lines following the outline prescribed in the EIA Procedure (2015). There are no further requirements for the substations by ECD in consideration of the project’s financing by ADB which will apply more stringent environmental requirements and monitoring. 26. Survey of Sensitive Receptors. The environmental consultants conducted the survey of sensitive receptors such as schools, hospitals, temples, and residential areas along the transmission line alignment from 21 – 29 March 2018 to identify those that will be affected project. Those that will be permanently affected because of the construction of the base of the monopoles and towers include 9 shops, 4 houses, and 3 house/shops based on the resettlement survey. At about 50 meters from the center of the lines, the sensitive receptors that will potentially experience temporary disturbances due to construction activities include 11 temples/monasteries, 8 schools, 2 health clinics, and 213 houses/shops. There are also 31 trees to be affected by the monopoles and 110 trees to be cut during line stringing. The survey distance was determined based on the type of construction activities to be introduced and the extent of influence of noise, dust, vibration,

18

traffic, and other related nuisances. Proper coordination and information dissemination with these sensitive receptors will be undertaken prior to the start of implementation. 27. Public Consultations. Stakeholder consultations were conducted since 2014 during the Project Preparatory Technical Assistance (PPTA). MOEE carried out meetings with government stakeholders at the office of the Yangon Electricity Supply Corporation (YESC) on May 30, 2014 to introduce the proposed power transmission project and to solicit their views and suggestions. This was followed by another consultation meeting held on October 2, 2014 with representatives of YCDC and the General Administration Offices of townships and various wards. Non-government organizations (NGOs) were also met on November 7, 2017 at the headquarters of the Myanmar Engineering Society. On December 19, 2014, MOEE officials and ADB consultants met with the affected households at Yanpyay Manpyay Community Center. 28. Follow-up public consultations were once again organized by MOEE through DPTSC from March 12 – 20, 2018 to present the updated plans of the project and the core safeguard policy principles, potential impacts and losses, and proposed mitigation and management plan. Six public consultation meetings were organized and a total of 294 participants attended these consultations. The meetings were held at the townships of Botahtaung, Htan Ta Pin, Mayan Gone, Yankin, Tamwe, and Thaketa. The following were the issues and concerns that were raised during the consultation meetings:

a) The people are partially aware of the proposed project. b) People are supportive about the project but there are some who fear the adverse

impacts in terms of health and safety. c) The people wants DPTSC to adopt proper safety measures. d) All compensation related issues should be fair and clearly discussed with the affected

people. e) There might be indirect impacts along the right-of-way to which it was explained by

DPTSC that the construction contractor will take necessary mitigation measures and will follow the environmental management plan. Any unforeseen impact during construction or implementation will be mitigated or compensated.

29. Focused group discussions with shops owners were also conducted on April 4 and 6, 2018. The shop owners said that they support the project because it will provide the community with 24-hour uninterrupted power supply. However, they are worried about the relocation and loss of income when their shops are closed. Most of them feel that the project has been planned by the Government but they want the project to ensure their safety and to provide fair compensation. 30. Coordination with YCDC and Myanmar Railway. The DPTSC has coordinated and conducted joint surveys with the Yangon City Development Committee (YCDC) and the Myanmar Railway to check the alignment and any impacts on existing utilities, planned city projects, and on the existing railway operation. YCDC and DPTSC met on May 9 to discuss the line route and conducted the joint survey on May 17, 2018. The joint survey with the Myanmar Railway was held on May 10, 2018. Impacts on structures was avoided to the extent possible. To ensure that the transmission lines will not cause adverse effects on the operation of the railway and cause community hazards, the lines will be designed to follow the required vertical and horizontal safety clearances from the railway and other structures in accordance with international standards and the requirements of the Electricity Law. 31. Environmental due diligence of Kyaikasan and Thaketa Substations. Environmental due diligence of the existing substations was conducted during the PPTA in accordance with the

19

requirements of ADB SPS (2009) to determine existence of any areas which may cause or is causing environmental risks or impacts. Follow-up due diligence was conducted in December 2017 and January 2018 on Kyaikasan and Thaketa substations to check whether there are areas for improvement in the management of environment, health, and safety. 32. Based on the results of the environmental due diligence, Kyaikasan substation requires more improvement on environmental management as compared to Thaketa substation where there is organized and systematic management of oil spills and leaks, fire safety, and worker health and safety program. At Kyaikasan substation, there were large traces of oil spills and workers were not wearing personal protective equipment. 33. Management measures in the design and implementation of the substations have been incorporated in the updated EMP and in the bid and contract documents in relation to management of oil spills/leaks, hazardous wastes, solid wastes, fire prevention, EMF monitoring, occupational health and safety management, and overall EMP implementation. 34. Updating of the IEE and EMP. Following the results of the site surveys, public consultations, and environmental due diligence, the IEE that was prepared in 2014 was updated. The updated IEE and EMP includes an assessment of the changes in the transmission line alignment and impacts brought about by the new alignment to the surrounding areas. 35. Two EMPs, one each for the transmission lines and another for the substations were prepared to align with the contract packages. These updated EMPs are annexes of the bid documents.

K. CONCLUSION

36. The project is in the design stage. The PIC has not yet been commissioned but bid documents have been prepared for the transmission lines and substations to initiate the process of bidding of the project. 37. As of June 2018, the DPTSC has complied with the following loan obligations on environment safeguards:

a) Prepared the updated IEE and EMP for ADB. The updated EMPs are attached as annex to the bid documents.

b) Coordinated with the ECD to comply with the Environmental Conservation Law. The ECD requires an IEE for the transmission line component of the project only. The IEE will be submitted to ECD after completion of the review by DPTSC.

c) Follow-up public consultations were organized and held in 6 townships in Yangon. This

was supplemented by focused group discussions and interviews with stakeholders.

d) DPTSC is coordinating with the YCDC and Myanmar Railway and other government agencies to finalize the line alignment and pole locations. Coordination activities will continue.

20

L. RECOMMENDATIONS FOR NEXT REPORTING PERIOD

38. Monitoring of the status of environment safeguards compliance will continue. The following activities are to be followed up in the next reporting period:

a) Submission of the final IEE to ADB

b) Submission of the IEE to ECD to secure environmental approval

c) Training of PTP and DPTSC staff on safeguards policies and EMP implementation once the PIC has been commissioned.

d) Follow-up coordination activities with affected stakeholders and agencies.