MARALA HYDROPOWER PROJECT (MHPP 7.64 MW ... Energy Development Sector Investment Program (REDSIP) DDR Marala Hydropower Project 1 EXECUTIVE SUMMARY 1. The reliable source of energy

DUE DILIGENCE REPORT

....................................................................................

REVISED DUE DILIGENCE REPORT December 2014

PAK: Renewable Energy Development Sector

Investment Program, Tranche 1

MARALA HYDROPOWER PROJECT

(MHPP 7.64 MW)

Prepared by Punjab Power Management Unit, Energy Department, Government of Punjab for

the Asian Development Bank.

NOTES

(i) The fiscal year (FY) of the Government of the Islamic Republic of Pakistan and

its agencies ends on 30 June.

(ii) In this report “$” refer to US dollars.

This due diligence 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.

Renewable Energy Development Sector Investment Program (REDSIP)

DDR Marala Hydropower Project 1

ENERGY DEPARTMENT

GOVERNMENT OF THE PUNJAB

PUNJAB POWER MANAGEMENT UNIT (PPMU)


(MHPP 7.64 MW)

ADB LOAN NO. 2286 – PAK FOR REDSIP

Revised

December 2014

DUE DILIGENCE REPORT


DDR Marala Hydropower Project a

TABLE OF CONTENTS

EXECUTIVE SUMMARY ...................................................................................................................................................... 1

1 DESCRIPTION OF THE PROJECT ......................................................................................................................... 4

1.1 BACKGROUND ............................................................................................................................................ 4 1.2 PROJECT LOCATION AND SCOPE OF WORK ......................................................................................... 4 1.3 MINIMIZATION OF IMPACTS ...................................................................................................................... 5 1.4 PROJECT CATEGORIZATION .................................................................................................................... 5 1.5 CONSTRUCTION SCHEDULE..................................................................................................................... 6

2 SOCIO-ECONOMIC PROFILE OF THE PROJECT AREA ...................................................................................... 9

2.1 DESCRIPTION OF PROJECT AREA ........................................................................................................... 9 2.2 STUDY PARAMETERS ................................................................................................................................ 9 2.3 ADMINISTRATIVE SETUP ........................................................................................................................... 9 2.4 DEMOGRAPHIC CHARACTERISTICS ........................................................................................................ 9 2.5 CULTURE AND LOCAL TRADITIONS ....................................................................................................... 10 2.6 RELIGION ................................................................................................................................................... 10 2.7 SETTLEMENT PATTERN .......................................................................................................................... 10 2.8 FOREST RESOURCES .............................................................................................................................. 10 2.9 CROPPING PATTERN ............................................................................................................................... 10

3 PROJECT IMPACTS AND VALUATION OF ASSETS .......................................................................................... 12

3.1 IMPACTS ON LAND ................................................................................................................................... 12 3.2 IMPACTS ON TREES ................................................................................................................................. 12 3.3 IMPACT ON BUILDING AND STRUCTURE .............................................................................................. 13 3.4 IMPACTS ON IRRIGATION DEPARTMENT AND ARMY STAFF .............................................................. 13 3.5 IMPACTS ON UTILITIES ............................................................................................................................ 14 3.5.1 ELECTRIC POLES AND TRANSMISSION LINE ....................................................................................... 14 3.5.2 TELECOMMUNICATION POLES ............................................................................................................... 14 3.6 IMPACTS ON ROAD .................................................................................................................................. 15 3.7 IMPACTS AND MITIGATION OF TRANSMISSION LINES ........................................................................ 15 3.8 POSITIVE IMPACTS .................................................................................................................................. 15 3.9 BUDGET FOR RELOCATION AND CONSTRUCTION.............................................................................. 15

ANNEX 1: CONSULTATION HELD AT MARALA WITH OFFICIALS AND PUBLIC ....................................................... 17 ANNEX 2: ESTIMATED COST FOR OPTICAL FIBER CABLE (OFC) ............................................................................. 18 ESTIMATED COST OF NEW BOUNDARY WALL ............................................................................................................ 19 PHOTO LOG ...................................................................................................................................................................... 20


DDR Marala Hydropower Project b

Abbreviations

ADB Asian Development Bank

EA Environmental Assessment

AEDB Alternative Energy Development Board

DD Deputy Director

DDR Due Diligence Report

EA Executing Agency

EPA Environmental Protection Agency

FD Forest Department

GWh Giga Watt hour

GoP Government of Pakistan

GTZ Deutsche Gesellshaft fur Technische Zusammenarbeit

(German Agency for Technical Cooperation)

HEPO Hydro Electric Planning Organization

HHs House Holds

IA Implementing Agency

ED Energy Department

KPK Khyber Pakhtun Khuwa

LGDs Local Government Departments

MHPP Marala Hydropower Project

MW Mega Watt

O&M Operation and Maintenance

PPMU Punjab Power Management Unit

PPTA Project Preparatory Technical Assistance

REDSIP Renewable Energy Development Sector Investment Program

ROW Right of Way

SHYDO Sarhad Hydro Power Development Organization

TA Technical Assistance

UCC Upper Chenab Canal

WAPDA Water and Power Development Authority


DDR Marala Hydropower Project c

Weights and Measures

Ac Acre

Ft Feet/Foot

Ha hectare

Km Kilometre

m meter

m3 cubic meter

m2 square meter

s seconds



EXECUTIVE SUMMARY

1. The reliable source of energy is considered to be the engine for the economic growth. The availability of cheap and sufficient energy is a basic economic need and an engine for the advancement of society. The production cost of the thermal power, due to escalation in oil and gas prices is much higher than hydel power.

2. The potential of Marala Hydropower Project (MHPP) was first identified in studies, undertaken by Water and Power Development Authority (WAPDA) simultaneously in 1988 and 1992. The Hydro Electricity Planning Organization (HEPO) of WAPDA in 2003 also conducted feasibility Study of MHPP. The study also includes an Environmental Assessment (EA) of the project.

3. The Government of Pakistan requested a loan for a number of renewable energy projects under Renewable Energy Development Sector Investment Program (REDSIP) and ADB has agreed and approved the said loan vide No.2286/87- for REDSIP in 2007. Within the loan, a Project Preparatory Technical Assistance (PPTA) was conducted in cooperation with the provincial Power Cells in Punjab Irrigation and Power Development (I&PD); Punjab Power Management Unit (PPMU), and Sarhad Hydro Power Development Organization (SHYDO) of Khyber Pakhtun Khuwa (KPK). The Alternative Energy Development Board (AEDB) was identified as Executing Agency (EA). The objective of the PPTA was to verify and update existing feasibility studies for future hydropower projects and present the studies according to ADB standards.

4. The project is situated on the Upper Chenab Canal (UCC), an off-take from the Marala Barrage. The MHPP starts approximately 305 m below the main Head Regulator of UCC and consists of 1219 m long permanent diversion canal at right bank of the UCC. Cofferdams were constructed at upstream and downstream, for construction of spillway in the UCC and will be removed after completion of project. The Power House is being constructed in the permanently constructed diversion channel (Power Channel). The existing embankments upstream to the barrage will also be raised to produce a head of 2.20 m at the powerhouse. The project will use the fall at diversion canal to produce an instantaneous power output of 7.64 MW, and electricity production of 43.37 GWh/year.

5. The MHPP has been awarded and being implemented on EPC / Turnkey basis. The final design of MHPP is the responsibility of the contractor which has been completed and examined through model testing at Irrigation Research Institute.

6. A DDR for Marala HPP was prepared, by incorporating all impacts relating to relocation from the project area (Government land belong to Irrigation Department) and sent to ADB on 22nd July, 2011. The broad objective of this Due Diligence Report is

to describe resettlement impacts, mitigation measures and compensation against losses in accordance with the ADB’s Policy on Involuntary Resettlement and applicable national laws.

Accordingly, ADB cleared the DDR on 27th October, 2011 for implementation. The compensation payments approved in DDR was paid to Executive Engineer, Marala for relocation of all assets from the project area. The DDR has been fully implemented under ADB guidelines / policies. All the impacts / assets belong to Government Department (Irrigation and Pakistan Army) and no private belongings exist in the project area.

7. During excavation of Power House and Power Channel, an Optical Fiber Cable (OFC) for provision of Critical Defense Communication Services to JPJ, Head Marala & Sialkot region in the project area belong to Army under earth / soil was found / indicated and got damage. The Army unit working at Marala was unaware of this OFC as this cable belongs to a different outfit of Army namely General Head Quarter (GHQ), Defense Communication (DEFCOMM) Directorate, Rawalpindi which was never discussed and conveyed to this office during meetings and participatory impact assessment surveys with officials of existing army



unit.

8. A joint visit / survey comprising of Mr. Rao Zakriya Farooq, Deputy Director (R&E), and Mr. Muhammad Latif Rana, Director (Procurement / Contracts) was also conducted with Syed Amer Ahsan Gilani, Lieutenant Colonel of General Head Quarter (GHQ), Defense Communication (DEFCOMM) Directorate, Rawalpindi and his team on May 24, 2014 at MHPP site to identify the impact of loss and its value. It revealed after thorough scrutiny during the joint survey that this 2.6 Km OFC is required to be realigned. Consequently, Directorate submitted an estimate (Bill of quantity including Tax) amounting to Rs. 1,800,000/- regarding shifting / relocation of OFC for payment vide office letter No. 1302/11/PMB dated 03rd June, 2014.

9. After final design of the MHPP and its model testing, it concluded that the length and curve of tailrace channel will be slightly altered which also involves demolishing of 446.08 Rft boundary wall of Executive Engineer Residence (Irrigation Department) and construction of new boundary wall about 340 Rft.

10. The Resettlement Team of PPMU, Energy Department conducted Participatory Impact Assessment Surveys by involving all stakeholder i.e. Executive Engineer, Marala Division, UCC Marala staff, local Rangers and army officials, residents of Irrigation Department Colony and local people in August & December 2010. This Due Diligence Report (DDR) is revised by incorporating the additional impacts / features, identified after final design of the

project by contractor and during construction activities under ADB Guidelines / Policies so that compensations could be paid to the concerned.

11. Alternative alignments and designs were also examined and finally the construction of diversion channel at right bank side of UCC was considered to be the best option and it was also tested and verified through model testing. The 35.5 Acres of land (Government land belonging to Irrigation Department) has been acquired free of cost for construction of permanent diversion channel (1219 m long), Contractor Camp, O&M staff colony and allied entities. The land area acquired for Power Channel (Diversion Channel) and allied entities involve eleven (11) old buildings of Irrigation Department & boundary wall of Executive Engineer Residence, Marala and shifting of electric poles & conductors from the project area and its realignment / relocation, shifting of ten (10) telephone poles, 464 trees including only 18 plants of full grown fruit trees belong to Irrigation Department.

12. One (1) firing range, one (1) check post and a guard room on Irrigation Department land currently being used by the army has also been relocated in the same vicinity, identified by Pak Army. There is OFC cable (additional impact) beneath the earth found during the excavation of Power House and Power Channel will also be relocated.

13. The PPMU has already been transferred funds to Executive Engineer, Marala Division, UCC Marala for relocation and construction of all buildings, electric poles and transmission line, telecommunication poles, firing range, check post and replantation while the compensation cost of OFC cable and boundary wall will be paid to the concerned after approval of revised DDR by the ADB.

14. The existing road about 1 Km long will be re-routed on further right side of the diversion channel at available land of Irrigation Department to provide approach road to the residents of the Irrigation Department Colony, Marala, O&M Staff Colony, PPMU and other establishments in the area. No additional land will be acquired to rebuild the approach road.

15. Under ADB guidelines and impacts assessed during surveys, MHPP is identified as a project of Category “C”. Investigations revealed that the whole project area is located on the Government land owned by Irrigation Department and all the assets are belong to Government Departments. There are no private encroachers and informal occupants; hence, it requires a Due Diligence Report.

16. The Budget for this revised DDR has been calculated by using the market rates derived



through consultation with Irrigation Department, WAPDA (GEPCO), Pakistan Telecommunication Company Limited (PTCL), Forest Department and General Head Quarter (GHQ), Defense Communication (DEFCOMM) Directorate, Rawalpindi. The total compensation cost for relocation of buildings, electric poles and transmission line, telecommunication poles, firing range, check post, replantation, OFC cable and boundary wall is estimated amounting to Rs. 51.66 Millions.



1 DESCRIPTION OF THE PROJECT

1.1 Background

17. The reliable source of energy is considered to be the engine for the economic growth. The availability of cheap and sufficient energy is a basic economic need and an engine for the advancement of society. The production cost of the thermal power, due to escalation in oil and gas prices is much higher than hydel power.

18. The potential of Marala Hydropower Project (MHPP) was first identified in to studies undertaken by Water and Power Development Authority (WAPDA) simultaneously in 1988 and 1992. The Hydro Electricity Planning Organization (HEPO) of WAPDA in 2003 also conducted feasibility Study of MHPP. The study also includes an Environmental Assessment (EA) of the project.

19. The Government of Pakistan requested a loan for a number of renewable energy projects under Renewable Energy Development Sector Investment Program (REDSIP) and ADB has agreed and approved the said loan vide No.2286/87- for REDSIP in 2007. Within the loan, a Project Preparatory Technical Assistance (PPTA) is conducted in cooperation with the provincial Power Cells in Punjab Irrigation and Power Development (I&PD); Punjab Power Management Unit (PPMU), and Sarhad Hydro Power Development Organization (SHYDO) of KPK. The Alternative Energy Development Board (AEDB) was identified as Executing Agency (EA). The objective of the PPTA was to verify and update existing feasibility studies for future hydropower projects and present the studies according to ADB standards.

1.2 Project Location and Scope of Work

20. The MHPP is a low head hydropower project with an estimated capacity of 7.64 MW, which is being constructed in permanent diversion channel (Power Channel) at right side of Upper Chenab Canal (UCC) between RD 1+000 to 5+000 while the Power House is being constructed at RD 2+850 in the diversion channel (Power Channel comprising of Headrace Channel and Tailrace Channel) and spillway has been constructed at existing Upper Chenab Canal (UCC).

21. The MHPP is being constructed on the Upper Chenab Canal (UCC) immediately below the Marala Barrage and Head works of UCC at Marala in Sialkot District, Punjab (see Fig 1).The site is located approximately 305 m below (downstream of) the main Head Regulator of UCC. The location map of the MHPP is given in Fig 1 and Project Layout Plan is given in Fig 2.

22. The MHPP has been awarded and being implemented on EPC / Turnkey basis. The final design of MHPP is the responsibility of the contractor which has been completed and examined through model testing at Irrigation Research Institute.

23. The MHPP (7.64 MW) scope of work comprises the construction of following components:

i. Construction of a diversion channel (Power Channel) about 75 m wide and 1219 m long on the right bank of the canal.

ii. Construction of the powerhouse in diversion channel (Power Channel) at RD 2+850 downstream from the Main Marala UCC head regulator.

iii. Raising of existing UCC embankments from RD 000+000 to the Power House and Spillway.

iv. Construction of spillway in the existing UCC. This requires a temporary cofferdam to enclose the area for spillway construction.

v. O&M staff colony, offices and the contractor’s camp will be constructed adjoining



to the existing Irrigation Department Colony area,

vi. Construction of 1 Km (approx.) long and 4.5 m wide access road with double surface treatment from Head Regulator at RD 000+000 to Power House and Colony.

vii. An 11 kV transmission line (about 1.5 km) on the right bank of UCC within ROW of UCC will be constructed to connect the 66 kV Grid Station adjacent to the Irrigation Department Colony, Marala.

24. A total of 35.5 Acres out of 200 hectares of Government Land (Irrigation Department) has been acquired for construction of diversion channel (Power Channel), O&M Staff Colony, contractor camp and allied entities. The project area involves eleven (11) old buildings of Irrigation Department, one (1) firing range, one (1) check post and guard room, shifting of electric poles with conductor from the project area and its realignment / relocation, shifting of ten (10) telephone poles will be relocated. 464 trees including only 18 plants of full grown fruit trees belonging to Irrigation Department which has already been relocated.

25. The project area also involves demolishing of 446.06 Rft. boundary wall of Residence of Executive Engineer, Marala Division (Irrigation Department) and construction of new boundary wall of about 340 Rft. and shifting & rerouting of Optical Fiber Cable (OFC) belongs to General Head Quarter (GHQ), Defense Communication (DEFCOMM) Directorate, Rawalpindi, identified during construction activities and final design of the project identified during excavation of Power Channel as additional impacts. All the entities belong to government department and no private belongings exist in the project area.

26. The Resettlement Team of PPMU, Energy Department in August & December 2010 and during construction activities conducted an Impact Assessment Survey to ascertain the social and environmental impacts of the project. The Information collected through field visits to the entire site and the adjoining private areas through stakeholders meetings, focus group discussions, preparing inventory of assets and individual interviews. The Resettlement Team also conducted separate meetings with the Local Government Departments, Executive Engineer, Marala Division and his staff and concerned Army officials to assess the relocation cost of the Building, structures, utilities and re-plantation for the loss of trees. A list of officials, organizations and private persons met during the survey is attached as Annex-1.

1.3 Minimization of Impacts

27. The PPMU has also taken all possible steps to minimize the adverse impacts on the relocation of buildings, structures and utilities through changing in design. Accordingly the following specific action was applied to avoid and minimize the impacts of relocation due implementation of MHPP.

A panel of experts consisting of Mr. Mansoob Ali Zaidi, Ex Secretary I&P Department, Mr. Abdul Sattar Shakir, Chairman Civil Engineering Department, UET Lahore, Mr. Syed Muhamood-ul-Hassan Shah Project Director LBDCIP, Mr. Ghulam Qadir, Acting Chief Engineer Research I&P Department, Mr. Nazir Ahmad Anjum, Superintending Engineer, UCC, Mr. Tabasum Shafique, Executive Engineer, Marala Division along with PPMU and PPDCL Management visited the site and suggested that the Power House will be constructed in diversion canal and Spillway in existing UCC to save the relocation of the Irrigation Department Offices, Ranger Colony, Rest Houses, Executive Engineer Residence, roads, utilities and removal of plantation.

1.4 Project Categorization

28. The MHPP, because of its relatively small size of 7.64 MW, is classified as a Category “C” project, in accordance with ADB’s Policy on involuntary resettlement (1995) and A Hand Book on Resettlement – A Guide to Good Practices. The entire land and land based assets within the acquired land for MHPP belong to the Government of the Punjab (Irrigation Department) and Pak Army, and no private ownership, encroachers, occupants exists in the



acquired land, hence only Due Diligence Report (DDR) is sufficient and prepared for the project. The last DDR, cleared by ADB has been successfully implemented and this DDR is revised due to inclusion of additional impacts (OFC cable and boundary wall of Executive Engineer Residence), identified during construction activities.

1.5 Construction Schedule

29. The MHPP was awarded to the successful bidder on September 24, 2011 and the effective date for construction activities was May 28, 2012. The construction schedule for the implementation of the project is 900 days and completion date is November 14, 2014 which has been revised and the new proposed completion date is June 2015.



Fig 1 : Project Location Map



Fig 2: Layout Plan of Marala Hydropower Project



2 SOCIO-ECONOMIC PROFILE OF THE PROJECT AREA

30. In any social set up, the personal characteristics of an individual play a vital and key role in the formation of attitude and behavior patterns. The institution of family has also profound and comprehensive effects in this respect. Socioeconomic status is a measure of an individual’s or family’s economic and social position based on education, income, and occupation.

2.1 Description of Project Area

31. The project area Marala is about 18 km to the north-west of Sialkot town in the Punjab and is linked to Sialkot by a tarred road. It is approximately 200 km from Lahore. The elevation of the project site is below 250 m Above Sea Level (ASL).

32. The canal system in the area was built in colonial times and for the Upper Chenab Canal (UCC), about 200 m wide ROW was acquired. In the early 1960s, the Government of Pakistan constructed the Marala-Ravi Link Canal (MRL) along the left side of UCC for which a further 160 m wide land-strip was acquired. Together, both the canals have about 360 m wide ROW which extends for approximately 2 km downstream of the Marala Barrage. In addition, the vast triangular area of land falling between the UCC right side and the Chenab River, downstream of Marala Barrage, was acquired as it is very low lying and flood prone. The low lying land is enclosed by two flood-protection bunds (earthen banks), which also serve as dirt access roads. The relatively elevated part of the same land close to the right bank of UCC was utilized by the Government to construct an Irrigation Department Colony, containing Offices and residential houses for the Irrigation Department employees.

2.2 Study Parameters

33. The information to establish a database for Due Diligence Report (DDR) of MHPP was collected from the review of previous studies/reports and through site visits to the Project Area. To comprehend the existing conditions, a preliminary survey was conducted and salient observations were duly noted. Pertinent data were also collected from the Census Report of Sialkot District.

34. The information for Impact Assessment survey was collected through consultation meetings with the officials and employees working at the proposed affected structures/ buildings (Irrigation & Army). The local residents, around the Project Area, were also interviewed to obtain their feedback regarding the construction of the proposed Project (MHPP) and its impacts on their daily life/future.

2.3 Administrative Setup

35. The Project area falls in the jurisdiction of union council Marala, Tehsil Sialkot. The union council Marala representing a total of 28 villages. The colony falls within the jurisdiction of Marala village. Tehsil is sub-unit of a district, which is the highest tier of local government system and deals with the administrative and revenue matters. District Sialkot constituted of 4 Tehsils namely Sialkot, Daska, Sumbriyal and Pasroor with 52 union councils, governed by a District Council. According to existing local government system (although temporarily suspended), members of each union council are directly elected through adult franchise, and also form the Electoral College to choose the members of next higher tiers. In addition to this, the councils have also representation from the vulnerable groups particularly the female members of community.

2.4 Demographic Characteristics

36. According to 1998 District Census Report, the total population of union council Marala was 23413 with an average annual growth rate of 2.5 per cent. The project area consists of Irrigation Department colony and ROW of UCC and Marala Ravi Link (MRL) Canal having 65 housing structures accommodating around 400 Irrigation Department and military persons. There is one boy’s high school, one girl’s higher secondary school, Basic Health Unit (BHU) and dispensary, union council office and two mosques. The area is linked with the District Head Quarter (HQ) with metalled road. The Irrigation Department colony is electrified and provided with potable water and sanitation facilities. There are 3 rest houses



in the Irrigation Colony area.

2.5 Culture and Local Traditions

37. The culture and tradition prevailed in the area is discussed as under:

i. The influence of religion on routine life of the people is distinctly felt and their conduct is regulated by the dictation of the religion. The majority of the population follows the Islamic tradition, which is well practiced in rural area and has high moral values in the society.

ii. Food of the inhabitants is very simple. Wheat and rice are generally eaten in the Project area. The use of refined butter (Desi ghee), milk and a diluted yogurt (lassi) is very popular in the rural area, which is available in sufficient quantity.

iii. “Shalwar Qamiz” is the most commonly worn dress of both men and women of the Project area. However, women also use Dopatta/ Shawl at their heads.

iv. Marriage is a special happy occasion in the family, which is performed with all its charms like singing and dancing. The members of the family and adjacent locality are invited by the bridegroom’s family and are entertained with delicious meal. The bride’s parents donate the dowry to the girl for equipping her new house.

v. The joint family system is predominant in the Project area. However, new life style and cultural impacts from the outside world have directly influenced the family system, gradually shifting to the nuclear family system.

2.6 Religion

38. Majority of the population is Sunni Muslims but Ahl-e-Hadis (Wahabis) and Ahl-e-Tashi are also present in a cordial atmosphere of a co-existence. The people of all the sects are usually living peacefully; there is no sectarian feeling among people of different sects. Non-Muslims are also living side by side at total ease with their Muslim brothers.

2.7 Settlement Pattern

39. The availability of water determines the location of hamlets/settlements. Approximately 200 Hacter land is owned by the Punjab Government (Irrigation Department),

i. Barrage Market situated on the left bank of MRL Canal, contains two fish restaurants and three small Cabins, selling candies and cigarettes to the visitors.

ii. Mai Mulani da Dera is a small community found nearby on the government land, situated downstream of Marala Barrage on Chenab river.

40. Mai Mulani da Dera is a small riverside hamlet consisting of only eight settlers’ mud-houses with population of 62 persons, who migrated from the Kashmir Control Line area in 1971 nearest to project area. Their main source of income is construction and industrial labor and production and sale of buffalo milk in Sialkot town. During survey, five (5) men, five (5) women and eight (8) children were found at the village. Women used to stay at home and always busy in domestic activities like cooking, washing and taking care of children etc. There are 3 to 7 buffaloes per household. They usually graze the buffalo-herds in the open grassy flood-affected lands between the river and Irrigation Department Colony.

2.8 Forest Resources

41. Along the UCC and project area, there is some plantation of trees – nearly all eucalypts, which have been planted and owned by the Irrigation Department. Some other species of trees also exist in the area include Sheesham (Dilbergia sisoo), Keekar (Acacia arabica), Peeloo (Salvadora persica), Bohar (Ficus religiosa), Gaz (Tamarix indica), Nim (Azadrichta indica) and fruit trees.

2.9 Cropping Pattern

42. In the surrounding of project area, ever since the irrigation canal system was developed rice, sugarcane and wheat have been the main crops. Sugarcane cultivation has also



displayed considerable decrease, mainly due to pest infection and delayed payments to the growers by the sugar industry. Potatoes and maize are also replacing sugarcane.



3 PROJECT IMPACTS AND VALUATION OF ASSETS

43. This section deals with the Marala Hydro Power Project (MHPP) impacts on Government land (Irrigation Department), Irrigation Department buildings and utilities, building and structures belongs to Army, Optical Fiber Cable (OFC) belongs to General Head Quarter (GHQ), Defense Communication (DEFCOMM) Directorate, Rawalpindi and compensations. The land acquired for MHPP and land based assets belong to Government of the Punjab (Irrigation Department) and Army and no any private encroachers and informal occupants reside in the project area. Therefore, the MHPP will not impact on the private people / entity.

44. During Impact assessment survey efforts were made to identify and collect data regarding land to be acquired for MHPP and land based assets i.e. buildings, structures, utilities and trees. The data was collected and provided in this Due Diligence Report through following survey techniques and tools.

i. Focus group discussions/interviews ii. Consultation meetings with stakeholders iii. Socio Economic Survey iv. Valuation Survey of losses with consultation of concerned departments

3.1 Impacts on Land

45. The MHPP involved 35.5 acres of land for diversion canal (Power Channel), Power House, O&M Staff Colony and allied works which has been acquired free of cost. All the land acquired for the MHPP is the Government land belongs to Irrigation Department and no private land involved in the implementation of MHPP. No encroachers, occupants exist and found during survey. The cost of land has been included in the revised DDR as per cost notified in the evaluation table by District Coordination Officer / District Collector, Sialkot for tariff petition purposes. It is mandatory to include land cost in the tariff petition as per NEPRA rules.

3.2 Impacts on Trees

46. There are number of trees which have been grown in the ROW of UCC and Irrigation Department Colony area. The project resulted in cutting down of 464 trees belongs to Irrigation Department and Forest Department within the project area. These trees will be cut in order to execute the civil works (some trees in the colony area are saved by alteration in the alignment of houses under construction. The five times replantation of trees has been made in the Irrigation Department land / area through Executive Engineer, Marala Division, UCC, Marala.

47. The majority of trees are Eucalypts and Sheesham in the acquired land. The PPMU has transferred replenishment cost to the Executive Engineer, Marala Division, UCC, Marala and Forest Department for replantation against the removed trees in the adjacent land of Irrigation Department. The replantation cost is estimated with the consultation of Forest Department and the Executive Engineer, Marala Division, UCC, Marala. The detail of trees to be removed is given in the table 3.1 and estimated cost for replantation is given in 3.1.1.

48. This component has been fully implemented and cleared.

Table 3.1 Detail of Affected Trees

Sr. No.

Name of Trees Botanical Name Numbers / Quantity

1 Sheesham Dalbergia Sissoo 192

2 Eucalypts Eucalyptus cinerea 185

3 Mango Mangifera indica 30

4 Sumbal Simal 39

7 Peepil Ficus 2

8 Jaman Jumbolana 6

9 Arijan 6

10 Keeker 3

11 Mulbery (Toot) 1



Table 3.1 Detail of Affected Trees

Sr. No.

Name of Trees Botanical Name Numbers / Quantity

Total 464

Table 3.1.1 Detail of Estimated Cost for Replantation

Sr. No. Department Number of Trees

Unit Rate (Rs.)

Estimated Cost (Rs.)

1 Irrigation Department 401 46800 / avenue mile 434,304

2 Forest Department 63 91080 / avenue mile 273,240

Total 464 707,544

3.3 Impact on Building and Structure

49. During surveys, it was identified that MHPP would cause the affect on 11 Nos. Irrigation Department buildings, i.e. workshop, stores, offices and residences etc. and Army buildings and structure i.e. one security check post & guard room and one firing range. These buildings has demolished and relocated / constructed at alternate place in the Irrigation Department colony area. One security check post and one firing range belonging to Army has been relocated / constructed at another place, identified by Army. The cost of buildings and structures were calculated with the consultation of building department, Irrigation Department and market rate and the estimated budget was transferred to the Executive Engineer, Marala for reconstruction / structures. All the buildings, infrastructure and utilities have been relocated / reconstructed. This component has already been implemented.

50. After final design of the MHPP by the contractor and its model testing at Irrigation Research Institute, Nandipur District Gujranwala, it concluded that the length and curve of tailrace channel will be slightly altered which will involve demolishing of 446.08 Rft boundary wall of Executive Engineer, Marala Residence (Irrigation Department) and construction of new boundary wall about 340 Rft. The estimated cost is included / incorporated in table 3.2 and the complete detail of the affected buildings and structures along with estimated cost is given in the table 3.2.

51. These components have been fully implemented and cleared except additional impacts of demolishing and construction of boundary wall.

Table 3.2 Detail of Affected Buildings

Sr. No.

Affected Assets to be Relocated Quantity Area Sft/Rft

Unit cost (PK Rs.)

Total Cost (PK Rs.)

Irrigation Department Buildings and Structure

1 Workshop 1 11289 4,547,281 4,547,281

2 Stores (Main Store, Station Area Section Store, Hydraulic Section Store)

3 5220 3,386,406 10,159,218

3 Offices (Telegraph Office, Police flood warning Wireless Office, Store Keeper Office)

3 1800 1,231,190 3,693,570

4 SDO Residence (grade 17) 1 1650 2,755,107 2,755,107

5 Boundary wall of stores and offices 1 10000 1,956,653 1,956,653

6 Signaller Residences (grade 1 to 10) 2 1980 1,549,000 3,098,000

7 Demolishing of existing boundary wall and construction of new wall of Executive Engineer, Marala residence (Additional Impact).

1 446.08 - 1,000,000

Sub total 27,209,829

Army Buildings and Structure

8 Firing range(belonging to Army) 1 6000 1,030,837 1,030,837

9 Check post & guard room (belonging to Army) 1 500 627,397 627,397

Sub total 6500 1,658,234

Total 28,868,063

3.4 Impacts on Irrigation Department and Army Staff



52. A total of 35 persons both from Irrigation Department and army are relocated in their new work places (newly constructed buildings). The list of persons along with their designations is given below. The Irrigation Department staff has been shifted / relocated in the newly constructed buildings. The new location is providing them opportunity for a more easy approach to the offices and the residential colony. The newly constructed buildings are also providing them sufficient work space and better working environment as compared to the old buildings which were in poor conditions. The detail of official relocated at new workplace is given in table 3.3.


Table 3.3 Detail of Official to be relocated in new workplace

Sr. No.

Office Title/Designation No of Persons

1 Workshop

Welders 2

Skilled Collies 3

Unskilled Collies 3

Chowkidars 3

2 Stores

Storekeeper 1

Chowkidars 3

Helpers 2

3 Signallers Office/residences

Two families 13

4 Check Post Guards 2

5 Offices Two Operators & One Store In charge 3

Total 35

3.5 Impacts on Utilities

3.5.1 Electric Poles and Transmission Line

54. The MHPP caused the impacts on electric poles and transmission line. These poles and transmission line were facilitating electricity to the affected buildings, Ranger Colony and offices at Marala Barrage. These electric poles and transmission lines has been relocated / shifted for providing electricity to the relocated buildings, Ranger Colony and offices at Marala Barrage. The cost of new electric transmission line and poles was calculated as per WAPDA schedule and is given in the table 3.4.


Table 3.4 Electric Poles and Transmission Line

Sr. No.

Items Quantity Cost (PK Rs.) Cost (PK Rs. In Million)

1 Shifting and installation of Electric Poles & Transmission Line

41 2,887,113 2.887

3.5.2 Telecommunication Poles

56. The MHPP also affected 10 numbers telecommunication poles which have been removed from the project area. The relocation cost of telecommunication poles was calculated with the consultation of Executive Engineer, Marala at replacement cost. The cost of relocation of telecommunication poles has been transferred to the Executive Engineer, Marala and detail of telecommunication poles and its cost is given in table 3.5:

57. During excavation of Power House and Power Channel, an Optical Fiber Cable (OFC) for provision of Critical Defense Communication Services to JPJ, Head Marala & Sialkot region in the project area belong to Army under earth / soil was found / indicated and got damage. The Army unit working at Marala was unaware of this OFC as this cable belongs to a different outfit of Army namely General Head Quarter (GHQ), Defense Communication (DEFCOMM) Directorate, Rawalpindi which was never discussed and conveyed to this office during meetings and participatory impact assessment surveys with officials of existing army unit.



58. A joint visit / survey comprising of Mr. Rao Zakriya Farooq, Deputy Director (R&E), and Mr. Muhammad Latif Rana, Director (Procurement / Contracts) was conducted with Syed Amer Ahsan Gilani, Lieutenant Colonel of General Head Quarter (GHQ), Defense Communication (DEFCOMM) Directorate, Rawalpindi and his team on May 24, 2014 at MHPP site to identify the impact of loss and its value. It revealed after thorough scrutiny during the joint survey that this 2.6 Km OFC is required to be realigned. Consequently, Directorate submitted an estimate (Bill of quantity including Tax) amounting to Rs. 1,800,000/- regarding shifting / relocation of OFC for payment vide office letter No. 1302/11/PMB dated 03rd June, 2014. The estimated cost of OFC is given in the table 3.5 and detail estimate of OFC cable is given as Annex-2.

59. This component has been fully implemented and cleared except shifting / relocation of OFC relating to the General Head Quarter (GHQ), Defense Communication (DEFCOMM) Directorate, Rawalpindi.

Table 3.5 Telecommunication Poles

Sr. No.

Items Quantity (Nos.)

Estimated Cost (Rs.)

1 Telecommunication Poles 10 100,000

2 Optical Fiber Cable 2.6 Km 1800,000

Total Cost 1900,000

3.6 Impacts on Road

60. The access metalled road measuring 915 m in length from barrage side to Irrigation Department Colony will be affected. This road will be rerouted along the diversion canal or on flood embankment within Government land. The construction of metalled road is included in the bidding documents and bidder will construct the same road. No additional land and amount will be required.

3.7 Impacts and Mitigation of Transmission Lines

61. A 1.5 Km transmission line will be constructed from power house to WAPDA grid station (66 KV), adjacent to Irrigation Department Colony within the ROW of the UCC. For this purpose, an estimated total of 21 poles would be erected. All these poles will be installed in the ROW of UCC. Thus no additional land will be acquired for this purpose. The construction of transmission line is the part of the bidding documents, no separate bidding / contract or funding is required for this purpose.

3.8 Positive Impacts

62. The MHPP will provide mean annual energy of 43.37 GWh/year to the national power supply. The electricity generated will be supplied to the national grid in the region and will benefit the people and contribute in the economic growth of country.

63. The MHPP is also providing unskilled/skilled jobs during the construction phase. The MHPP will also provide a limited number of jobs during operation. This will be a bonus for the people of the area.

64. MHPP is a clean and renewable and friendly source of energy and will avoid contributions to pollution loads, resulting from the alternative use of thermal electricity generation.

3.9 Budget for Relocation and Construction

65. The cost of relocation and reconstruction of buildings, structures and utilities is estimated in consultation with concerned departments. Efforts are made to workout realistic cost /values on the basis of current market values. Table 3.6 gives the breakup of relocation of buildings, structures, utilities including replantation and additional impacts costs. The PPMU has already transferred funds to the Executive Engineer, Marala Division, UCC Marala as per already approved DDR, which has been fully implemented. The revised budget cost is estimated 51.66 Millions by incorporating conditional impacts cost. The PPMU is responsible and has sufficient budget to implement the additional impacts identified during construction



activities and final design of project by the contractor as per this revised DDR.

Table 3.6 SUMMARY OF DUE DILIGENCE COST


Sr. No.

Type of Asset Unit Quantity Cost (Rs.) Cost (Rs.

Million) Remarks

1

Land

(a) Government Land Acre 22.5 @ 355,000 7,987,500

12.60

Govt. Land Belong to Irrigation Deptt. has been acquired free of cost. The land cost has been included in DDR for tariff petition.

(b) Land For Colonies, offices Acre 3 @

355,000 1,065,000

(c) Land for Contractor camps Acre 10 @

355,000 3,550,000

2

Affected Buildings/Structures

(a) Irrigation Buildings Sq. Ft 11 26,209,829 26.21

Irrigation Deptt. Buildings. Already implemented.

(b) Demolishing of existing boundary wall and construction of new wall of Executive Engineer, Marala residence.

446.08 R.Ft

1 1,000,000 1.00 Additional Impact

(c) Security Check Post Sq. Ft 1 627,397 0.63 Belong to Army. . Already implemented. (d) Firing Range R. Ft 1 1,030,837 1.03

3 Tree Compensation Nos. 464 707,544 0.71

Already implemented.

4 Utilities

(a) Electric Poles & Transmission Line Nos. 41

2,887,113 2.89 Already implemented.

(b) Telecommunication Pole Nos. 10 100,000 0.1 Already implemented.

(c) Optical Fiber Cable (Belong to Army DEFCOMM GHQ) 2.6 Km 1 1,800,000 1.80 Additional Impact

Sub Total 46,965,220 46.97

6 Contingencies @ 10% 46,965,22 4.7

Total (Rs) 51,661,742 51.66

Total Rs. (Million) Say Rs. 51.66 Million

66. The final cost of relocation and construction of buildings, structures and utilities with the consultation of concerned departments is estimated. The compensation cost amount as per previous DDR has already been transferred to the XEN Marala Division, Irrigation Department as per applicable procedures for relocation and reconstruction of buildings / infrastructures & utilities and replantation. The previous DDR, cleared by ADB has been fully implemented. This revised Due Diligence Report Cost is estimated by incorporating additional impacts cost. The PPMU has sufficient budget and responsible for the implementation of this revised DDR.



Annex 1: Consultation Held at Marala with Officials and Public

Sr. # Name Designation

Irrigation & Power Department

1 Muhammad Arif Executive Engineer Marala Division UCC

2 Tabassum Shafique Executive Engineer Marala Division UCC

3 Ch. Muhammad Shafique Sub Divisional Officer, Marala

4 Mirza Sharafat Baig Sub-Engineer

5 Ghulam Qambar Zaigham Sub-Engineer

6 Muhammad Ilyas Sub-Engineer

7 Muhammad Hafeez Head Clerk

8 Abdul Majeed Welder

9 Ghulam Qadir Skilled Qoolie

10 Muhammad Iqbal Skilled Qoolie

11 Abdul Hafeez Chowkidar

12 Muhammad Rafiq Chowkidar

13 Hazoor Ilahi Chowkidar

14 Muhammad Arshad Signaler

15 Muhammad Yousaf Signaler

16 Muhammad Jameel Signaler

17 Muhammad Sadiq Store Keeper

Pakistan Army

18 Syed Amer Hassan Gillani Lt. Colonel

19 Inam ul Haque Colonel, 5 NLI

20 Muhammad Riaz Major, 5 NLI

21 Naveed Ahmad Captain, 20 Engineers Battalion

22 Uzair Ali Lieutenant

23 Muhammad Noman Solider

24 Rizwan Ahmad Solider

25 Farhan Solider

26 Attif Naushair Solider

27 Ahad Munir Solider

28 Abdul Mughees Solider

29 Fahad Naseer Solider

Local Residents

30 Ijaz Saleem

31 Imran Naveed

32 Chaudhary Manzoor

33 Hafiz Attiq

34 Saad Naseeb

35 Bilal Saeed

36 Muhammad Amin

37 Irtaza Khalid

38 Hassan Bashir

39 Qudrat Ullah

40 Talha

41 Asim Rafiq

42 Ghulam Hussain

43 Syed Zaidi

44 Muhammad Ramzan

45 Adeel

46 Waris Ali

47 Nadeem Afzal

48 Mashtaq Ali

49 Arif Ali

50 Muhammad Qasim



Annex 2: Estimated Cost for Optical Fiber Cable (OFC)

Sr. #

Nomenclature Accounting Units

Number of Units

Present Rate (Rs.)

Total Price (Unit X Rate)

(Rs.)

a. OFC (18 Pairs) Meters 2600 160.00 416,000

b. Joint Enclosure Numbers 2 3000.00 6,000

c. HDPE Pipe Meters 2250 100.00 225,000

d. GL Pipe Meters 350 600.00 210,000

e. Excavation Hard / Soft Mark able Soil Meters 2250 300.00 675,000

f. Marker Post Numbers 20 500.00 10,000

g. Road Crossing Meters 350 300.00 39,000

h. Warning Tape Meters 2600 15.00 33,750

i. Cable Pulling Meters 2250 20.00 21,600

j. Splicing Numbers 72 300.00 45,000

k. Back Filling Meters 2250 15.00 4,000

l. Slab for Joint Numbers 8 500.00 9,650

m. Miscellaneous Charges i.e. Sand. Transportation & Administration etc.

- - - 1,800,000



MARALA HYDRO POWER PROJECT

Estimated Cost of New Boundary Wall

Sr. No.

Schedule Rates References

Calculations

1. CH3 – 2a

Excavation: Quantity = 3227.15 Cft Unit Rate = 4.12 Rs. Cft Cost = Rs. 13295.86

2. CH6 – 5H

Lean: 1:3:6 Quantity =358.57 Cft Unit Rate = 171.99 Rs. Cft Cost = Rs. 61670.45

3.

CH7 – 4

Brickwork: i) Below DPC: Quantity = 1265.55 Cft Unit Rate = 168.76 Rs. Cft Cost = 213574.22 Rs.

CH7 – 7

ii) Above DPC: 1:4 cm Quantity = 789.00 Cft Unit Rate = 177.82 Rs. Cft Cost = Rs. 240299.98

4. CH11 – 9b

Plaster Quantity = 2075.50 Cft Unit Rate = 13.77 Rs. Cft Cost = Rs. 28579.64

5. CH11 – 18a

Pointing Quantity = 2075.50 Cft Unit Rate = 14.86 Rs. Cft Cost = Rs. 30841.93

6. CH6 – 5f

Topping 1:2:4 (0.65 Thick) Quantity = 92.61 Cft Unit Rate = 197.55 Rs. Cft Cost = Rs. 18295.11

7. CH6 – (33 ai)

DPC 1:2:4 (1 ½ Thick) Quantity = 253.11 Sft Unit Rate = 41.37 Rs. Cft Cost = Rs.10471.16

8. Demolishing and Shifting of Material

Rs. 350,000

Total Rs. 967028.35 Say 1,000,000



PHOTO LOG

Trees to be impacted along the canal bank

Electric and Telecommunication Poles to be relocated



Trees to be impacted

Irrigation Building being impacted

Documents

MARALA HYDROPOWER PROJECT (MHPP 7.64 MW ... Energy Development Sector Investment Program (REDSIP) DDR Marala Hydropower Project 1 EXECUTIVE SUMMARY 1. The reliable source of energy