Social Monitoring Report (July-December 2017) · Social Monitoring Report Semiannual Report February 2018 AZE: Power Distribution Enhancement Investment Program, Tranche 1 Prepared

Social Monitoring Report

Semiannual Report February 2018

AZE: Power Distribution Enhancement Investment

Program, Tranche 1

Prepared by Project Supervision and Management Consultant for Azerishig Open Joint Stock

Company and the Asian Development Bank.

This social 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.

Project Supervision and Management Consultant

for

Power Distribution Enhancement Investment Program,

Tranche 1 Republic of Azerbaijan

Semiannual Social Monitoring Report:

Status of Resettlement Implementation,

July-December 2017

ADB Loan No. 3407-AZE Project No. 42401-015 For: Asian Development Bank (ADB) “Azerishig” Open Joint Stock Company 4 January 2018 This report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents

ABBREVIATIONS ADB - Asian Development Bank AP/AH - affected person/affected household AZN - Azerbaijan Manat (currency) CTS - compact transformer station DDR - due diligence review DMS - detailed measurement survey EA - executing agency IA - implementing agency LARF - land acquisition and resettlement framework LARP - land acquisition and resettlement plan MFF - multi-tranche financing facility OHL - overhead line OJSC - Open Joint Stock Company PIU - Project Implementation Unit PMC - Project Supervision and Management Consultant RESSD - Regional Energy Supply and Sales Department ROW - right-of-way SIW - self-insulated wire SPS - Safeguard Policy Statement (2009) SS - substation TL - transmission line

WEIGHTS AND MEASURES

ha - hectare km - kilometer kV - kilovolt m - meter m2 - square meters

iii

CONTENTS

I. Background ........................................................................................................................ 1

II. Objectives of the Social Monitoring Report ..................................................................... 3

III. Methodology ..................................................................................................................... 3

IV. Status of Resettlement Implementation ......................................................................... 3

A. ADB concurrence to the DDR reports, LARP, and CAP .................................................. 4

B. Implementation of the CAP for Mr. Aghayev Zafar ........................................................... 5

C. Implementation of the Zardab-Udjar LARP ...................................................................... 6

D. Progress of construction works and resettlement issues arising therefrom ...................... 9

E. Grievance redress resolution ..........................................................................................10

V. Conclusion and recommendation ...................................................................................10

VI. Appendices ......................................................................................................................11

Appendix 1 August 2017 letter of Azerishig to the contractors ...............................................12

Appendix 2 Status of Work on 110 kV Substations as of 16 December 2017 ........................14

Appendix 3 Status of Work on 110 kV Lines as of 16 December 2017 ..................................15

Appendix 4 Status of Work on 35 kV Substations as of 16 December 2017 ..........................16

Appendix 5 Status of Work on 35 kV Lines as of 16 December 2017 ....................................16

Appendix 6 Status of Work on 0.4 kV SIW Conductors as of 16 December 2017 ..................23

Appendix 7 Status of Work on 10/6 kV Distribution Lines as of 16 December 2017 ..............23

Appendix 8 Empty logbooks from different contractors ........................................................ 232

LIST OF TABLES

Table I-1 RESSDs and Project Districts ..................................................................................... 1

Table IV-1 Dates of Submission and Approval of DDR Reports, CAP, and LARP ...................... 4

Table IV-2 Crops Grown on the Affected ROW Land ................................................................. 6

Table IV-3 LARP Budget ............................................................................................................ 7

Table IV-4. Compensation distribution matrix…………………………………………………………8

LIST OF FIGURES

Figure I-1: RESSD and Rayons in Tranche 1 ............................................................................. 2 Figure D-2: Shift of footprint of CTS ........................................................................................... 9 Figure D-3: Photo of complaint logbook……………………………………………………………...10

1

I. Background

1. The Government of Azerbaijan and the Asian Development Bank (ADB) have agreed to

implement the Power Distribution Enhancement Investment Program in 3 tranches, starting

in 2016 until 2022, as a multi-tranche financing facility (MFF). On 19 July 2016, ADB

approved Loan 3407-AZE to finance the power program’s $350 million Tranche 1. Of this

amount, $250 is being provided by ADB, while $75 million is government’s counterpart.

Loan 3407-AZE became effective on 2 September 2016 and its closing date is on 30 June

2019. Project construction works are targeted for completion by 31 December 2018.

Subprojects under Tranche 1 include, among others, the rehabilitation and expansion of

aging medium- and low-voltage distribution networks comprising approximately 4 units of

110 kilovolt (kV) substations (SS); 16 units of 35 kV substations; 1,157 units of 6-10 kV

transformer stations; 54 km of 110 kV distribution lines; 124 km of 35 kV distribution lines;

and 1,237 km of 6-10 kV distribution lines.

2. The Azerishig Open Joint Stock Company (OJSC)1 is the executing agency, while the

implementing agencies (IAs) are the respective Regional Energy Supply and Sales

Department (RESSD) of the following cities and rayons2 (districts), namely, Baku, Shimal

Garb, Janub, Garb, Aran, Shimal, and Markazi Aran. Districts covered by the Project are

Absheron, Siyazan, Shamakhi, Oghuz, Gakh, Ganja, Goranboy, Mingechevir, Zardab,

Saatli, Imishli, Neftchala, Salyan, Hajigabul, Masalli, and Lankaran. The Project Supervision

and Management Consultant (PMC) provide day-to-day assistance to the EA.

Table I-1 RESSDs and Project Districts

RESSD Rayon

Baku Absheron (Khirdalan, Alat)

Shimal Siyazan (Sumgayit)

Shimal Garb Gakh, Oghuz, Shamakhi

Garb Ganja, Mingechevir

Markazi Aran Goranboy

Aran Saatli, Imishli, Zardab

Janub Lankaran, Masalli, Neftchala, Hajigabul, Salyan

3. Until the end of the first half of 2017, Tranche 1 was categorized as C for involuntary

resettlement. This categorization was subsequently changed to B in the third quarter of

2017 following two successive ADB safeguard missions in July and August 2017 where it

was learned that a private landholding had been acquired in November 2016 in the

expansion of the 110/35/10 kV Dalimammadli SS and that landholdings had to be acquired

in the second half of 2017 for the footings of 9 steel lattice towers of the 35 kV overhead

line (OHL) that runs from the 110/35/10 kV Udjar SS to the 35/10 kV Zardab SS3, not to

mention temporary use of land and disruption in the farming activities of residents during

the stringing of transmission towers.

4. This social monitoring report covers the period July-December 2017.

1 Referred to hereinafter as Azerishiq. 2 The country is divided into 10 economic regions, 66 rayons and 77 cities. Twelve of the cities, including Baku;

Ganja; and Mingachevir, are directly governed by the central government. 3 These matters are discussed further in Section IV of this report.

2

Figure I-1: RESSD and Rayons in Tranche 1

Source: Initial Environmental Examination, August 2015

3

II. Objectives of the Social Monitoring Report

5. The project’s Facility Administration Manual (FAM) mandates the PMC to assist Azerishiq in

preparing a semi-annual social safeguard monitoring report to be submitted to ADB for

disclosure.4 As stipulated in the FAM, social safeguard monitoring is intended to ensure that

“all land acquisition and resettlement activities, if any, are implemented in compliance with

(i) all applicable laws and regulations of the Government relating to land acquisition and

involuntary resettlement; (ii) the involuntary resettlement safeguards under ADB's

Safeguards Policy Statement (2009); and (iii) all measures and requirements set forth in the

resettlement plan, and any corrective or preventive actions set forth in the safeguards

monitoring report.”5

III. Methodology

6. Information for this report has been culled from various social safeguard documents that

Azerishiq and the PMC prepared and submitted to ADB in the second half of 2017, in

addition to field reports prepared and submitted by PMC consultants to Azerishiq.

IV. Status of Resettlement Implementation

7. Following receipt of complaints from two persons6 in May 2017 and June 2017, ADB fielded

a safeguard review mission on 2 – 7 July 2017 to look into the status of safeguard

compliance in the Project. During that mission, it was found out that Azerishig acquired 0.36

ha from AP on 29 November 2016 for the expansion of the 110/35/10 kV Dalimammadli SS.

On 21 – 25 August 2017, ADB fielded a follow-up safeguard mission. At the conclusion of

the second safeguard review mission, Azerishig agreed to carry out a due diligence review

(DDR) of each subproject of Tranche 1.

8. Also during the conclusion of the 21 – 25 August 2017 ADB follow-up safeguard mission,

Azerishig agreed to prepare a LARP for 7 households at Qarabork village of Ujar region

region, who were to lose a portion of their landholdings for the footings of lattice towers of

the 35 kV Ujar-Zardab TL. In addition, Azerishig agreed to prepare a corrective action plan

(CAP) to facilitate the belated payment of a special cash allowance to AP, who despite

being a vulnerable project-affected person (AP), was not provided such cash allowance.

Social safeguard specialists from the Project Implementation Unit (PIU) of Azerishiq and

PMC, with assistance from the concerned RESSDs and contractors, collaborated in July –

September 2017 in carrying out the DDRs and in preparing the aforementioned LARP and

CAP.

4 Facility Administration Manual, Power Distribution Enhancement Investment Program, Tranche 1 (ADB Loan 3407-

AZE/Project Number 42401-015), May 2016, p. 42. 5 Op cit., p. 52. 6 Mr. Hasanov Suleyman Gubad of Khoylu Village, Goranboy Region, in May 2017 wrote a complaint letter to ADB

Azerbaijan Resident Mission (AZRM) alleging that the project contractor violated his property rights by erecting 4 electric posts (35 kV line) on his farmland. Investigation carried out by Arerishig and the regional energy authorities revealed that the alleged affected farmland did not belong to Mr. Hasanov. More importantly, the contractor transferred the 4 electric poles outside the contested landholding. Relatedly, Mr. Yediyarov Neman Gulam of Galma Village, Zaardab Region, on 19 June 2017 sent a telegram to AZRM complaining the contractor was not erecting electric posts (0.4 kV SIW line) in his village correctly. Site inspection carried out by project authorities on 21 June 2017 proved the allegation of Mr. Yediyarov to be wrong. Both Messrs. Hasanov and Yediyarov are not project-affected persons (APs).

4

A. ADB concurrence to the DDR reports, LARP, and CAP

9. Starting with the submission to ADB on 9 September 2017 of the revised DDR report for the

35 kV Overhead Line between 110/35/10 kV Sarijali SS and 35/10 kV Saatli SS, to which

the Bank gave its approval on 14 September 2017, Azerishiq submitted in September and

October 2017 four additional DDR reports, 1 LARP, and 1 CAP for ADB’s approval.

Table IV-1 Dates of Submission and Approval of DDR Reports, CAP, and LARP

Subproject Document Submitted

Date of Submission

Date of Approval

35/10 kV line between Saatli ss and 110/35/10 kV Sarjali ss DDR 9 Sept 2017 14 Sept 2017

35 kV Masalli-Aldavi TL DDR 18 Sept 2017 20 Sept 2017

Expansion of the 110/35/10 kV Dalimammadli SS CAP 21 Sept 2017 21 Sept 2017

110 kV Udjar-Zardab TL LARP 21 Sept 2017 26 Sept 2017

110 kV SS and TLs in Goranboy, Gakh, and Neftchala Districts, in addition to Ganja City

DDR 18 Oct 2017

35 kV SS and TLs in Shamkir, Imishli, Hajigabul, Lankaran, Gakh, Shamakhi, Siyazan, Masalli, Oghuz, Saatli, Zardab, and Abheron Districts, in addition to the Cities of Baku, Gaja, and Mingachevir

DDR 19 Oct 2017 30 Oct 2017

10/6 kV distribution lines and 0.4 kV self-insulated wires in Garadag, Hajigabul, Goranboy, Imishli, Saatli, Zardab, Shamkir, Gakh, Shamakhi, Oghuz, Neftchala, Masalli, Lankaran, and Siyazan Districts, in addition to the Cities of Khirdalan, Mingachevir, and Ganja

DDR 6 Nov 2017 6 Nov 2017

10. ADB agreed with the findings of the DDRs that no permanent acquisition of private

landholdings occurred or would happen in the finished, on-going, and planned construction

works of subprojects, except in the expansion of the 110/35/10 kV Dalimammadli SS and

the construction of 9 steel lattice towers of the 110 kV Udjar-Zardab TL. Nevertheless, the

DDRs identified potential temporary resettlement impacts during the construction and/or

dismantling of steel lattice towers, poles, and substations and during the stringing of the

towers. These potential temporary resettlement impacts include, among others, possible

damages to fixed assets (e.g., structures) that are located close to the construction

activities; hampered access to properties during trenching works for underground power

lines; and damaged crops and farmlands during the stringing of steel lattice towers. The

DDR reports identified measures to avoid and/or mitigate the aforementioned potential

resettlement impacts, such as confining construction works within the existing right-of-way

(ROW) of power lines and substations, and payment of compensation for any damages to

private and public assets (See Appendix 1 for a copy of the August 2017 letter of Azerishig

reminding the contractors of their obligation in the construction and dismantling of power

lines in order to avoid adversely affecting any person).7 Site supervision engineers of PMC

that are fielded in all subprojects have been tasked to monitor compliance by contractors to

the mitigation measures spelled out in the DDR reports, in addition to receiving, registering

on a logbook, and facilitating appropriate actions to resolve complaints of APs/AHs (project-

affected households) and other stakeholders.

7 Provisions have been included in the contracts of work contractors that oblige them to negotiate directly with

anybody whose property and/or livelihood would be damaged in the course of the construction, stringing and dismantling of towers and power lines in the project’s ROW.

5

11. In the case of the expansion of the 110/35/10 kV Dalimammadli SS, PIU personnel that

carried out the DDR confirmed that AP received 1,700 AZN in compensation for the 0.36 ha

that he agreed to sell to Azerishiq in November 2016. However, it was learned during the

DDR that the AP had not been given the cash allowance for vulnerable APs, contrary to the

requirements of the agreed 2015 Land Acquisition and Resettlement Framework (LARF). A

CAP had to be prepared to address this omission.

12. Although 9 APs that were affected by the loss of land in connection with the construction of

steel towers for the 35 kV Zardab-Udjar TL, the LARP was prepared primarily for 7 of the

APs; these APs were cultivating portions of the ROW land of the existing (old) 35 kV OHL.

The other 2 APs (one of them had land title over his affected property, another one was

using the land plot without legal entitlement with connections to utility services) and they

executed a deed of voluntary donation8 bequeathing a portion of their properties in favor of

Azerishiq for the construction of a tower each on their land.

B. Implementation of the CAP for AP in Dalimammadli town

13. The DDR conducted in August 2017 at the 110/35/10 kV Dalimammadli SS by personnel of

the PIU confirmed that the 1,700 AZN land compensation paid to AP was above market

rates prevailing at the time of land acquisition in November 2016 (i.e., 4,530 AZN/ha or

1,631 AZN for the 0.36 ha acquired land). Relatedly, the DDR found out that the AP, while

having lost the equivalent of more than 40% of his total landholdings, could not be

considered as severely affected per ADB 2009 Safeguard Policy Statement (SPS); the AP’s

land adjoining the Dalimammadli SS had been idle for more than a decade because it was

not productive. Therefore, the household of AP was not deriving any economic benefit from

the subject landholding. The livelihood of the household of AP depends mainly on his 140

AZN monthly salary, in addition to his monthly government pension of 326 AZN being a

veteran of the Garabag War. However, as mentioned earlier, AP was not given his cash

allowance for vulnerability. The AP falls under Group 1 for disability under present

regulations.9

14. Per the agreed LARF, the AP was entitled to (i) a one time cash allowance equivalent to the

prevailing minimum salary in the locality multiplied by 3 months, and (ii) priority for

employment in project-related jobs, training opportunities, self- employment and wage-

employment assistance. None of the aforementioned was provided to the AP. When PIU

personnel met with AP in August 2017 during the DDR, he was informed about his

entitlements. The AP, however, averred that there was nobody in his household who was

capable to work in the project’s construction activities. Thus, the focus of the CAP was to

8 Each of the signed voluntary donation listed the conditions that had to be met to make the donation compliant with

the ADB 2009 Safeguard Policy Statement (SPS), paraphrased as follows (i) land loss is marginal; (ii) land loss does not result to relocation or loss of income on the part of the AP; (iii) the AP making the donation would benefit from the project; (iv) land donated is free from encumbrance; (v) AP is well informed about his/her entitlements and consultations with the AP is documented; and (vi) the donation is supported with transfer of land titles.

9 Group 1 covers persons suffering from limitations of vital activity (e.g., motion; self-service; labor activity) as a result of disease, trauma, or congenital defects, and is permanently in need of another person’s help or care. (Corrective Action Plan for Social Safeguards, Power Distribution Enhancement Investment Program, Tranche 1 [ADB Loan 3407-AZE/Project Number 42401-015], September 2017.

6

ensure that the AP is paid his special allowance for vulnerability amounting to 348 AZN

(i.e., 116 AZN/minimum monthly salary multiplied by 3 months).

15. Following receipt of ADB’s approval of the CAP, the PIU Environmental and Social

Safeguard Specialist, accompanied by site supervision engineers of the PMC, delivered the

348 AZN special allowance for vulnerability to the household of AP. The AP’s wife in the

presence of their son received on behalf of the AP the special allowance of 348 AZN for

vulnerability; the AP at the time of the visit was out of town in Naftalan for his regular

medical treatment.

16. In connection with the preparation of the CAP’s completion report, the PMC’s social

safeguard expert on 1 November 2017 met with AP in Dalimammadli Town to confirm

whether or not PIU had indeed paid his special allowance for vulnerability in the amount of

348 AZN. The AP confirmed to the PMC social safeguard expert that on 5 October 2017 his

wife in the presence of their son received 348 AZN from the PIU’s environmental/social

specialist.

C. Implementation of the Zardab-Ujar LARP

17. The 7 APs whose farming activities in Garabork Village extended into the ROW of the

existing 35 kV OHL did not contest the fact that they were farming inside the OHL’s ROW.

The detailed measurement survey (DMS) that PIU carried out in late August 2017 found

wheat, clover, cotton, and 6 mulberry saplings on the 891 m2 of ROW land that the

construction and stringing of 8 steel lattice towers needed.10

Table IV-2 Crops Grown on the Affected ROW Land

Crop Area (m2)

Wheat 205

Clover 660

Cotton 21

Mulberry tree sapling 5

Total 891 Source: Zardab Rayon LARP, 20 September 2017

18. Consistent with the agreed 2015 LARF, the 7 APs were not entitled to compensation for the

affected lands they were tilling but for improvements (i.e., crops, including improvements to

make the land productive) found or introduced thereat. For this reason, Azerishig in August

2017 engaged an independent firm to determine the prevailing market rates of lands in the

locality. The market study suggested a rate of between 4,000 AZN (Azerbaijan Manat) and

8,000 AZN per hectare (ha). Azerishig opted to offer 6,000 AZN/ha in compensation for the

permanently and temporarily affected landholdings of the 7 APs. Compensation for crops

found on the affected landholdings were also calculated based on prevailing market rates.

ADB on 26 September 2017 gave its concurrence to the LARP.

10 The 8 steel lattice towers were all suspension towers with a footprint of 5 m2 each. This area had to be recovered

permanently from the 7 APs. In addition, approximately 851 m2 were to be affected temporarily, i.e., standing crops thereat would be destroyed and the cultivated land altered, during the stringing of the 8 towers.

7

Table IV-3 LARP Budget

Budget Item Affected Assets Unit Total Cost (AZN)

AZN US$

Compensation for land 891 m2 0.6 AZN/m2 535 315

Compensation for crops 205 m2 wheat 655 m2 clover 21 m2 cotton

0.34 AZN/m2

0.11 AZN/m2 0.1 AZN/m2

96 56

Compensation for mulberry

six 1~2 years old sapling

6 36 21

Sub-total 667 392

Miscellaneous cost (15% of sub-total, rounded) 100 59

Grand Total 767 451 Source: Zardab Rayon LARP, 20 September 2017

19. The responsibility for implementation of the LARP was assigned to PIU of Azerishig OJSC

through its Environmental and Social Safeguard Specialist who was assisted by the PMC’s

international social safeguard expert. Local authorities (Representative of Ujar region

Executive Power Office in Qarabork village and municipality of Garabork village of Ujar

region) and representatives of Contractor involved in the sub-project were also involved to

the implementation of the LARP.

20. On 2 November 2017, International social safeguard expert of PMC, accompanied by PIU’s

environmental and social specialist (team), travelled to Garabork Village for the purpose of

delivering payment of compensation to the 7 DPs.

21. The team visited representative office of Ujar Executive Power in Qarabork village and met

with head of representation and village municipality asking their assistance for distribution

of payments to the 7 DPs. After phone calls made to DPs head of the representative

clarified that it will be very difficult to find a common time for the DPs to assemble in the

village office or to go their homes as majority of them are engaged in different activities in

neighboring regions.

22. In their capacity as representatives of the District Executive Power, the head of

representative office and his deputy proposed that they would go to the individual

residences of the DPs within the week to deliver their compensation money.11 The team

explained to the head of representative office the compensation method and amount to be

paid to each DP based on the LARP for further delivering of the explanation to DPs by

them.

23. However, the village officials explained that it would be more reasonable and fair to divide

compensation budget equally rather than giving compensation based on crops lost. He

explained that for farmers the main money consuming issue is preparation of land plots for

cultivation, i.e. tilling and harrow works, which cost 35 AZN each and requires involving of

agricultural machinery and this assistance would be more expedient and helpful to DPs. So,

after consultations between the participants it was decided that two of DPs, should receive

125 AZN each, while the 5 other DPs would receive 90 AZN each. The 2 DPs that were

11 This is consistent with the Zardab Rayon LARP as enunciated in Chapter 8 (Institutional Arrangements).

8

entitled to get 125 AZN each had more farmlands affected (mulberry sapling) than the

others (See Table 3 for details).

Table IV-4. Compensation distribution matrix

Budget Item Affected Assets Unit

Total Cost (AZN) AZN

Compensation for tilling for 5 DPs

1 ha per DP 35 AZN per ha

175

Compensation for harrow for 5 DPs

1 ha per DP 35 AZN per ha

175

Compensation for crops for 5 DPs

205 m2 wheat 655 m2 clover 21 m2 cotton

0.34 AZN/m2

0.11 AZN/m2 0.1 AZN/m2

100

Compensation for mulberry saplings for 2 DPs

twenty 1~2 years old sapling

25 250

Sub-total 700

Grand Total 700

24. On 5 November 2017, the head of representative office informed PIU that all 7 DPs had

been paid their compensation money and originals of the receipts were delivered to PIU

office shortly.

25. ADB fielded safeguard review mission of the project on 12-14 December 2017 during which

the mission visited Dalimammadli town for verification of compliance of CAP and LARP

implementation to ADB’s safeguard policies and procedures. The mission met with AP (i.e.

his son, due to absence of AP) in Dalimammadli substation and interviewed him with regard

to receiving payment for vulnerability status, where the receipt was confirmed by AP.

26. The next visit of the mission was to Qarabork village of Ujar region for verification of

compliance of implementation of Zardab-Ujar LARP. The meeting with APs was held in

municipality of the village with participation of village officials. The APs were interviewed by

the mission related the compensation received for damage to their cultivated land plots and

crops, receipt of which was confirmed by all APs. Afterwards the mission visited land plots

of APs affected by transmission line, and 2 households who donated land plot to the project

for placement of towers while having a short conversation with one of donators.

27. Upon completion of the safeguard review mission the PIU of Azerishig prepared and

submitted (December 26, 2017) to ADB final compliance reports for CAP in Dalimammadli

and LARP for Zardab-Ujar regions, where the compliance with the ADB Safeguard Policy

Statement (2009) and the Project LARF (2015), as well as to the active legislation of

Azerbaijan was claimed.

9

D. Progress of construction works and resettlement issues arising therefrom

28. Construction works on the 110 kV substations have all been completed and considered

closed for resettlement as of submission in September 2017 of the DDR report on these

subprojects (see Appendix 2 for details). The same is true for the 110 kV lines that have all

been completed and considered closed for resettlement as of submission in September

2017 of the DDR report on these subprojects (see Appendix 3 for details). With regards

works on the 35 kV substations, they are at various stages of completion and are to be

finished by end of December 2017 (see Appendix 4 for details). Regarding the 35 kV lines,

all but 2 subprojects have been completed and could be considered as closed for

resettlement as of 16 December 2017. The 2 incomplete subprojects are the (i) 35 kV OHL

between the 110/35/10 kV Imishli SS and 35/20 kV Rasullu SS (94% done), and (ii) 35 kV

OHL between the 110 kV Siyazan SS and 35 kV Siyazan SS (98% done). Works on these

2 subprojects are up for completion by end of December 2017 (see Appendix 5 for details).

29. Meanwhile, works on the 0.4 kV self-insulted wire (SIW) subprojects are at various stages

of completion but are due to be finished by end of December 2017 (see Appendix 6 for

details). Similarly, works on the 10/6 kV distribution line subprojects are at various stages of

completion but are due to be finished by end of December 2017 (see Appendix 7 for

details).

30. A complaint from a resident that claimed ownership over a plot on which a compact

transformer station (CTS) of the 10 kV line from the 35/10 kV Oghuz SS was to be

constructed had been resolved with the prompt transfer by the contractor of the same to a

plot owned by the municipal government (See Figure 2).

10

31. Likewise, a local resident at Alyat Settlement in Baku City complained when the contractor

of the 35/6 kV Alyat Baghlari SS used his empty land to stockpile construction materials

(See Figure 3). The contractor promptly transferred the construction materials and resolved

the complaint.

E. Grievance redress resolution

32. Despite having been provided with logbooks on which to register and track the resolution of

complaints, work contractors and PMC site supervision engineers are not in the habit of

using the logbooks. A visit in November 2017 by PIU staff and PMC consultants to various

subprojects found empty logbooks only (See Appendix 8), notwithstanding, for instance,

the two aforementioned complaints that were promptly resolved. It is fairly safe to presume

that minor complaints come about in the construction of the various subprojects, but these

are promptly and quietly addressed and resolved in situ by the contractors.

V. Conclusion and recommendation

33. In conclusion and as stipulated in the FAM, this report takes the position that resettlement

in Tranche 1 of the Power Enhancement Investment Program is being carried out “in

compliance with (i) “all applicable laws and regulations of the Government relating to land

acquisition and involuntary resettlement; (ii) the involuntary resettlement safeguards under

ADB's Safeguards Policy Statement (2009); and (iii) all measures and requirements set

forth in the resettlement plan, and any corrective or preventive actions set forth in the

safeguards monitoring report”. However, the PIU ad PMC consultants at Azerishiq project

office in Baku should exercise vigilance in regularly monitoring the progress of work of

unfinished subprojects and ensure that complaints from stakeholders, if any, are promptly

resolved and put to closure.

11

VI. Appendices

12

Appendix 1. August 2017 letter of Azerishig to the contractors

13

English translation of the Azerishig letter from August 2017:

14

Appendix 2. Status of Work on 110 kV Substations as of 16 December 2017

Substation Description

Location (rayon/city)

Contractor Contract number

Work status as

of 28 September 2017 DDR

Upcoming works as of 28

September 2017 DDR

LAR Issues reported in 28 September

2017 DDR

Status of Work as of 16 December

2017

LAR Issues as of 16 December

2017

110/35/10 kV 2x40 MVA Dalimammadli substation

Goranboy rayon

Anadolu Elektrik Sanayi ve Ticaret A.Ş.

AI/ADB-1.1 Civil works completed

Dismantling of old substation

CAP implementation (payment of special allowance to 1 vulnerable AP)


None

110/35/10 kV 2x40 MVA Mashingayirma substation

Ganja City Retro Holding LLC



None Dismantling of old substation

None

110/35/10 kV 2x40 MVA Gakh substation

Gakh rayon Gidromashservis LLC




None

110/35/10 kV 2x40 MVA Neftchala substation

Neftchala rayon

IMA Energy LLC AI/ADB-2.2 Civil works completed



None

15

Appendix 3. Status of Work on 110 kV Lines as of 16 December 2017

Line description Location

(rayon/city) Contractor

Contract number

Work status as

of 28 September 2017 DDR

Upcoming works as of

28 September 2017 DDR

LAR Issues reported in 28

September 2017 DDR


2017


2017

110 kV line with diversification of 1st and 2nd Ganja line up to Dalimammadli substation (2x2000m)

Ganja and Goranboy rayons

Retro Holding AI/ADB-6.1

Completed None None/closed closed closed

Reconstruction of 110 kV line between 110 kV Ganja 2 substation and 110 kV Mashingayirma substation (2x2000 m)

Ganja city Retro Holding AI/ADB-7 Completed None None/closed closed closed

Reconstruction of 110 kV line from Gakh substation with diversification of the 1st and 2nd Zagatala lines (2x12800 m)

Zagatala and Gakh rayons

Retro Holding AI/ADB-7 Completed None None/closed closed closed

110 kV line between 110 kV Salyan and 110 kV Neftchala substations (2x37000 m)

Salyan and Neftchala rayons

Azerelektrikshebeketikinti LLC

AI/ADB-8.1

Completed None None/closed closed closed

16

Appendix 4. Status of Work on 35 kV Substations as of 16 December 2017




Work status as of 27

September 2017 DDR

Upcoming works as of 27 September

2017 DDR


September 2017 DDR

Status of Work as of 16

December 2017

LAR Issues as of 16

December 2017

35/6 kV Alyat Baghlari substation

Alyat Settlement of Baku City

AZNOF and SMTS LLCs AI/ADB-5.1 • Earth works

• Foundation works

• Construction of substation building

• Landscaping

• Inner roads pavement

• Installation of 35 and 6 kV switchgears

• Installation of 10 MVA transformers

• Installation of transformer feeders

None -Progress 85% -works to be completed by end of December

One complaint made by local resident who lives close to the substation related with blockage of road by Contractor with construction materials. The issue promptly addressed and solved by the Contractor.

35/6 kV Vagzalyani-1 substation

Ganja City Anadolu Elektrik Sanayi ve Ticaret A.Ş.

AI/ADB-3.2

• Earth works



• Landscaping






None

35/10/6 kV Yeni Ganja substations

Ganja City Anadolu Elektrik Sanayi ve Ticaret A.Ş.

AI/ADB-3.2

• Earth works



• Landscaping


• Installation of 35, 10 and 6 kV switchgears




None

17





September 2017 DDR


2017 DDR


September 2017 DDR


December 2017

LAR Issues as of 16

December 2017

35/6 kV Mingachevir substation

Mingachevir City

Anadolu Elektrik Sanayi veTicaret A.Ş.

AI/ADB-3.1

• Earth works




• Landscaping


• Installation of 10 MVA transformer



None

35/10 kV Khirdalan substation

Khirdalan City

AZNOF and SMTS LLCs AI/ADB-5.1

• Earth works



• Landscaping





None -Progress 73%

-works to be completed by end of December

None

35/10 kV Shamkir-2 substation

Shamkir rayon


AI/ADB-3.2

• Earth works



• Landscaping






None

35/10 kV Rasullu substation

Imishli rayon


AI/ADB-5.2

• Earth works



• Landscaping




• Installation of transformer


None

18





September 2017 DDR


2017 DDR


September 2017 DDR


December 2017

LAR Issues as of 16

December 2017

feeders

35/10 kV Pirsaat substation

Hajigabul rayon


AI/ADB-4.2

• Earth works




• Landscaping





None

35/10 kV Sapnakaran substation

Lankaran rayon


AI/ADB-4.2

• Earth works




• Landscaping Installation of 35 and 10 kV switchgears




None

35/10 kV Ilisu substation

Gakh rayon AzerElektrikShebekeTikinti JSC

AI/ADB-4.1

• Earth works




• Landscaping




None -Progress 98% works to be completed by end of December

None

35/10 kV Shamakhi substation

Shamakhi rayon

AzerElektrikShebekeTikinti JSC

AI/ADB-4.1

• Earth works




• Landscaping


• Installation of 10


None

19





September 2017 DDR


2017 DDR


September 2017 DDR


December 2017

LAR Issues as of 16

December 2017

MVA transformers


35/6 Siyazan substation

Siyazan rayon


AI/ADB-3.1

• Earth works




• Landscaping


• Installation of 10 MVA transformer



None

35/10 kV Oghuz substation

Oghuz rayon

AzerElektrikShebekeTikinti JSC

AI/ADB-4.1

• Earth works




• Landscaping





None

35/10 kV Alvadi substation

Masalli rayon


AI/ADB-4.2

• Earth works




• Landscaping





None

35/10 kV Saatli substation

Saatli rayon Anadolu Elektrik Sanayi veTicaret A.Ş.

AI/ADB-5.2

• Earth works





• Installation of 10


None

20





September 2017 DDR


2017 DDR


September 2017 DDR


December 2017

LAR Issues as of 16

December 2017

• Landscaping MVA transformers


35/10 kV Zardab substation

Zardab rayon


AI/ADB-5.2

• Earth works



• Landscaping Inner roads pavement





None

21

Appendix 5. Status of Work on 35 kV Lines as of 16 December 2017

Line description Location (rayon/ City)



September 2017 DDR




September 2017 DDR


December 2017


2017

35 kV line between 110 kV Dallar-Darti and 35 kV Shamkir-2 substations (2x8100 m of overhead and 2x2000 m of underground cable lines)

Shamkir rayon Retro Holding AI/ADB-7 Completed None None. Sub-project considered as closed in connection with LAR

Closed Closed

35 kV overhead line between 110/35/10 kV Imishli and 35/20 kV Rasullu substations (2x6000 m)

Imishli rayon Elektrik Qurashdirma Muassisasi and Global Export LLCs

AI/ADB-6.2 • Civil works

• 49 towers

• 4 towers

• Stringing of conductor

None • Progress 94%

• To be completed by end of December

None

35 kV line between 110/35/6 kV Alyat and 35/6 kV Atbulag substations (2x14600 m)

Hajigabul rayon Elektrik Qurashdirma Muassisasi and Global Export LLCs


• 91 towers

Dismantling of old line

None Progress 97% completed except connection to the s/s

None

35 kV line between 110 kV Lenkaran-1 and 35 kV Sapnakaran substations (2x1200 m)

Lankaran rayon Elektrik Qurashdirma Muassisasi and Global Export LLCs

AI/ADB-8.2 Completed None None/closed Progress 97% completed except connection to the s/s

Closed

35 kV line between 110 kV Gakh and 35 kV YeniIlisu substations (2x12800 m)

Gakh rayon Retro Holding AI/ADB-7 Completed None None/closed Progress 97% completed except connection to the s/s

Closed

35 kV line between 110 kV Shamakhi-3 and 35 kV Shamakhi substation (2x3000 m)

Shamakhi rayon

Retro Holding AI/ADB-7 • Civil works

• Installation of 23 towers

• Wire stringing works


Closed

35 kV line between 110 kV Siyazan and 35 kV Siyazan substations (2x3500 m)

Siyazan rayon Retro Holding AI/ADB-7 • Civil works

• 12 towers


• Dismantling of old line

None Progress 98% To be completed by end of December

None

35 kV line between 110 kV Aliaga Vahid and 35 kV Khirdalan substations (2x6000 m)

Khirdalan City of Absheron rayon

Elektrik Qurashdirma Muassisasi and Global Export LLCs

AI/ADB-6.2 Completed None None/closed Progress 97% completed except connection to the s/s

Closed

22

Line description Location (rayon/ City)



September 2017 DDR




September 2017 DDR


December 2017


2017

35 kV line between 110/35/6 Alyat and 35/6 kV Alyat Baghlari substations (2x10000 m)

Alyat settlement of Baku City

Elektrik Qurashdirma Muassisasi and Global Export LLCs


• 64 towers



Closed

35 kV line between 110 kV Ganja-3 and 35 kV Vaghzalyani-1 substations (2x1500 m)

Ganja City Retro Holding AI/ADB-7 • Civil works

• 19 towers


None Completed Closed

35 kV line between 110/35/10 kV Mashingayirma and 35 kV Yeni Ganja substations (2x2100 m)

Ganja City Retro Holding AI/ADB-7 Completed None None/closed closed Closed

35 kV line between 110 kV Shahar and 35 kV Mingachevir substations (2x4200 m)

Mingachevir City

Retro Holding AI/ADB-6.1 Completed None None/closed Completed except installation of optic cable

Closed

35 kV line between 110 kV Azersu and 35 kV Oghuz substations (2x3000 m)

Oghuz rayon Retro Holding AI/ADB-7 • Civil works

• 25 towers


None Completed Closed

35 kV line between 110/35/10 kV Ujar and 35/10 kV Zardab substations (2x30000 m)

Ujar and Zardab rayons

Retro Holding AI/ADB-6.1 • 143 towers • 16 towers*


• Dismantling of old line

LARP implementation (land acquisition and payment for affected crops)

Completed Closed

Construction of the double-circuit 35 kV line between 110/35/10 kV Sarijali and 35/10 kV Saatli substations

Saatli Rayon Elektrik Qurashdirma Muassisasi and Global Export LLC

AI/ADB-6.2 • - 70 towers

• -Stringing works: 11 km

• None Completed Closed

Construction of the double-circuit 35 kV line between 110/35/10 kV Masalli and 35/10 kV Alvadi substations

Masalli rayon Elektrik Qurashdirma Muassisasi and Global Export LLC

AI/ADB-8.2 • -55 towers

• -Stringing works: 5.35 km

• None Completed Closed

23

Appendix 6. Status of Work on 0.4 kV SIW Conductors as of 16 December 2017



Contract number

Work status as

of 17 October

2017 DDR

Upcoming works as of 17 October

2017 DDR

LAR Issues reported 17

October 2017 DDR


December 2017


2017

0,4 kV SIW conductor (215.3 km) from 35/10 kV from CTC feed by "Alat Baghları" SS

Alyat Settlement of Garadagh rayon

Stone Construction LLC

AI/ADB-9.2 38 % works completed

• 0.4 kV poles

• SIW conductors

None -45 % works completed -Construction /installation works to be completed by end of December

None

0,4 kV SIW conductor (385.2 km) from CTC feed by 35/10 kV "Xırdalan" SS

Khirdalan city Stone Construction LLC


• 0.4 kV poles

• SIW conductors


None

0,4 kV SIW conductor (215.29 km) from CTC feed by 35/6 kV "Mingachevir" SS

Mingachevir City

Vest Ltd AI/ADB-10.2 65 % works completed

• 0.4 kV poles

• SIW conductors


None

0,4 kV SIW conductor (295.6 km) from CTC feed by 110/35/10 kV "Dalimammadli" SS

Goranboy rayon

Vest Ltd. AI/ADB-10.2 90 % works completed

• 0.4 kV poles

• SIW conductors


None

0,4 kV SIW conductor (80.9 km) from CTC feed by 35/10 kV "Rasullu" SS

İmishli rayon Universal Elektroservis


• 0.4 kV poles

• SIW conductors


None

0,4 kV SIW conductor (103.4 km) from CTC feed by 35/10 kV "Saatlı" SS

Saatli rayon Universal Elektroservis


• 0.4 kV poles

• SIW conductors


None

0,4 kV SIW conductor (316.4 km) from CTC feed by 35/10 kV "Zardab" SS

Zardab rayon Universal Elektroservis


• 0.4 kV poles

• SIW conductors


None

24



Contract number

Work status as

of 17 October

2017 DDR


2017 DDR


October 2017 DDR


December 2017


2017

0,4 kV SIW conductor (316.4 km) from CTC feed by 35/6 kV "Vağzalyanı-1" Ss, 35/10/6 kV "Yeni Gəncə" Ss and 110/35/10 kV "Mashınqayırma" SS

Ganja city Vest LTD AI/ADB-12.2 54 % works completed

• 0.4 kV poles

• SIW conductors


None

0,4 kV SIW conductor (114.8 km) from CTC feed by 35/10 kV "Shamkir-2" SS

Shamkir rayon Vest LTD AI/ADB-12.2 92 % works completed

• 0.4 kV poles

• SIW conductors


None

0,4 kV SIW conductor (123.6 km) from CTC feed by 35/10 kV "İlisu" SS

Gakh rayon Vest LTD AI/ADB-13.2 48 % works completed

• 0.4 kV poles

• SIW conductors


None

0,4 kV SIW conductor (231.2 km) from CTC feed by 35/10 kV "Shamakhı" SS

Shamakhi rayon

Vest LTD AI/ADB-13.2 40 % works completed

• 0.4 kV poles

• SIW conductors


None

0,4 kV SIW conductor (235.31 km) from CTC feed by 35/10 kV "Oghuz" SS

Oghuz rayon Vest LTD AI/ADB-13.2 98 % works completed

• 0.4 kV poles

• SIW conductors


None

0,4 kV SIW conductor (68.2 km) from CTC feed by 110/35/6 kV "Neftchala" SS

Neftchala rayon İMA Energy AI/ADB-14.2 86 % works completed

• 0.4 kV poles

• SIW conductors


None

0,4 kV SIW conductor (169.7 km) from CTC feed by 35/10 kV "Alvadi" SS

Masalli rayon İMA Energy AI/ADB-14.2 82 % works completed

• 0.4 kV poles

• SIW conductors

None -95 % works completed -Construction /installation works to be completed by

None

25



Contract number

Work status as

of 17 October

2017 DDR


2017 DDR


October 2017 DDR


December 2017


2017

end of December

0,4 kV SIW conductor (210.67 km) from CTC feed by 35/10 kV "Sapnakaran" SS

Lankaran rayon İMA Energy AI/ADB-14.2 70 % works completed

• 0.4 kV poles

• SIW conductors


None

0,4 kV SIW conductor (139.01 km) from CTC feed by 35/6 kV "Pirsaat" SS

Hajiqabul rayon İMA Energy AI/ADB-14.2 88 % works completed

• 0.4 kV poles

• SIW conductors


None

0,4 kV SIW conductor (511.88 km) from CTC feed by 35/6 kV "Siyazan" SS

Siyazan rayon Vest LTD AI/ADB-15.2 78 % works completed

• 0.4 kV poles

• SIW conductors


None

26

Appendix 7. Status of Work on 10/6 kV Distribution Lines as of 16 December 2017

Line Description Location


Contract number

Work status as

of 17 October

2017 DDR


2017 DDR


October 2017 DDR


2017

LAR Issues as of 16 December 2017

10 kV cable line (26.3 km) from 35/10 kV "Khırdalan" SS

Absheron rayon, Khirdalan city

Hayat İnshaat LLC

AI/ADB-9.1

79 % completed

• 10 kV XLPE cable 1x300/35 sq mm

• Trench excavation

• Manhole

None - 84 % progress -Construction /installation works to be completed by end of December

None

6 kV cable line (22.1 km) from 35/6 kV "Alat Bağları"

Garadagh rayon, Alat settlement

Hayat Inshaat AI/ADB-9.1

27 % works completed

• 10 kV XLPE cable 1x300/35 sq mm

• Trench excavation

• Manhole


None

10 kV line (201.17 km) from 110/35/10 kV "Dalimammadli" SS

Goranboy rayon Vest LTD AI/ADB-10.1

68 % completed

• 10 kV poles

• AS Conductor


None

6 kV line (18.2 km) from 35/6 kV "Mingachçevir" SS

Mingachevir town

VEST Ltd AI/ADB-10.1

92 % completed

• 10 kV poles

• AS Conductor


None

10 kV line (39.4 km) from "Rasullu" SS

Imishli rayon Elektrik Qurashdirma Muassisasi LLCs

AI/ADB-11.1

78 % completed

• 10 kV poles

• AS Conductor


None

10 kV line (35.5 km) from "Saatlı" SS

Saatli rayon Elektrik Qurashdirma Muassisasi LLCs

AI/ADB-11.1

64 % completed

• 10 kV poles

• AS Conductor


None

10 kV line (126.28 km) from "Zardab" SS

Zardab rayon Retro Holding AI/ADB-11.1

67 % completed

• 10 kV poles

• AS Conductor


None

10/6 kV line from 35/6 kV- "Vagzalyanı-1" SS (12,04 km), and from 35/10/6 kV "Yeni Ganja" SS (103,49 km) and from 110/35/10 kV

Ganja city Vest LTD AI/ADB-12.1


• 10 kV poles

• AS Conductor


None

27



Contract number

Work status as

of 17 October

2017 DDR


2017 DDR


October 2017 DDR


2017


"Mashınqayırma" SS (13,3km)

10 kV line (64.17 km) from 35/10 kV "Shamkir-2" SS

Shamkir rayon Vest LTD AI/ADB-12.1


• 10 kV poles

• AS Conductor


None

10 kV line (40.8 km) from 35/10 kV "İlisu" SS

Gakh rayon Retro Holdinq AI/ADB-13.1


• 10 kV poles

• AS Conductor


None

10 kV line (21.3 km) from 35/10 kV "Shamakhı" SS

Shamakhi rayon Retro Holdinq AI/ADB-13.1


• 10 kV poles

• AS Conductor


None

10 kV line (126,3 km) from 35/10 kV "Oghuz" SS

Oguz rayon Retro Holdinq AI/ADB-13.1


• 10 kV poles

• AS Conductor


One complaint received by local resident of Oghuz town related with shifting of CTC footprint from private land plot to municipal area which was taken into account by local office Azerishig and Contractor and the footprint shifted to neighbouring area owned by local municipality

10 kV line (60.2 km) from 35/10 kV "Alvadi" SS

Masalli rayon IMA Energy AI/ADB-14.1


• 10 kV poles

• AS Conductor


None

10 kV line (58,35 km) from 35/10 kV "Sapnakaran" SS

Lankaran rayon IMA Energy AI/ADB-14.1


• 10 kV poles

• AS Conductor


None

28



Contract number

Work status as

of 17 October

2017 DDR


2017 DDR


October 2017 DDR


2017


6 kV line (32.2 km) from 110/35/6 kV Neftchala SS

Neftchala rayon IMA Energy AI/ADB-14.1


• 10 kV poles

• AS Conductor


None

6 kV line (52,42 km) from 35/6 kV "Pirsaat" SS

Hajiqabul rayon IMA Energy AI/ADB-14.1


• 10 kV poles

• AS Conductor


None

6 kV line (201,18 km) from 35/6 kV "Siyazan" ss (Siyazan rayon)

Siyazan rayon Retro Holding AI/ADB-15.1

69% of works completed

• 10 kV poles

• AS Conductor


None

29

Appendix 8. Empty logbooks from different Contractors

Documents

Social Monitoring Report (July-December 2017) · Social Monitoring Report Semiannual Report February 2018 AZE: Power Distribution Enhancement Investment Program, Tranche 1 Prepared