Nepal India Electricity Transmission and Trade Project (IDA Credit Nos. 4902-NP & 5263-NP and IDA Grant Nos. H660-NP & H858-NP) Implementation Support Review (September 10-18 and November 26-28, 2018) Aide Memoire 1. During September 10-18, 2018, a Bank Team 1 led by Mr. Rabin Shrestha carried out an Implementation Support Review of the Nepal India Electricity Transmission and Trade Project (NIETTP). The Bank team along with Country Manager, Faris H. Hadad-Zervos and Mr. Kul Man Ghising, Managing Director (MD), Nepal Electricity Authority (NEA) visited some of the Project sites where construction activities are ongoing from November 26-28, 2018. This Aide Memoire (AM) summarizes the findings on the status of the project implementation, recommendations and agreements reached with the relevant agencies to expedite project activities. The AM was discussed at the wrap-up meeting with Mr. Dinesh Kumar Ghimire, Joint Secretary, Ministry of Energy, Water Resources and Irrigation (MOEWRI) on September 12, 2018; Mr. Kul Man Ghising, MD, NEA on September 14, 2018 and during joint field visit from November 26-27, 2018, and Dr. Ram Prasad Mainali, Former Under Secretary, IECCD, Ministry of Finance (MoF) on September 21, 2018. As agreed during these meetings, the AM will be classified as a public document under the World Bank’s Access to Information Policy. OVERALL STATUS AND KEY PROJECT DATA 2. The Project Development Objectives (PDOs) are to: (a) establish cross-border transmission capacity between India and Nepal of about 1000 MW to facilitate electricity trade between the two countries; and (b) increase the supply of electricity in Nepal by the sustainable import of at least 100 MW. Based on the progress of the results indicators, the PDO is maintained at ‘Moderately Satisfactory’. Table 1: Project Data Project Data Summary Ratings Previous Current Board Approval: June 21, 2011 Progress towards achievement MS MS of PDO Effectiveness Date: September 29, 2011 Overall Implementation Progress MS MS Closing Date: December 31, 2018 Procurement MS MS Original Amount: USD 99 million; Additional Financial Management MS MS Financing: USD 39 million Amount Disbursed (As of November 30, 2018) Safeguards MU MU Original: USD52.07 million (58.0%) Project Management MS MS Additional Financing: USD23.88 million (64.1%) M&E MS MS Counterpart Funding S S Note: S = Satisfactory; MS = Moderately Satisfactory; MU= Moderately Unsatisfactory 3. Project Restructuring: The Bank received the government’s request dated December 13, 2018 for extension of closing date of the Project from December 31, 2018 to April 30, 2020. This request is being reviewed by the Bank management. If the Project closing date is not extended beyond December 31, 2018, the Team has made clear to the Government that NEA will have to finance all activities that will not be completed by the current closing date of December 31, 2018. In response to the government’s earlier request dated April 4, 2018, the Bank extended the closing date only until December 31, 2018 advising that further extension need would be reviewed depending on the satisfactory progress in safeguard actions. Please refer to Annex 4 for details. 1 The team consisted of: Rabin Shrestha (Sr. Energy Specialist, TTL), Xiaoping Wang (Sr. Energy Specialist), Caroline Mary Sage (Sr. Social Development Specialist), Rekha Shreesh (Social Development Specialist), Drona Raj Ghimire (Sr. Environment Specialist), Prakash Awasthi (Environment Consultant), Timila Shrestha (Financial Management Specialist), Shambhu Prasad Uprety (Sr. Procurement Specialist), Barsha Pandey (Operations Analyst), and Alina Thapa (Team Assistant). 1 4. Components A1 and A2: Dhalkebar-Muzaffarpur Transmission Line: The transmission line is designed at 400 kV but is currently operating at 220 kV with transfer capacity of about 1100 MW. However, due to installation of 2x163 MVA stepdown transformer at Dhalkebar, the current transfer capacity is only about 293 MW (at power factor of 0.9). 5. Component B1: Hetauda-Dhalkebar-Inaruwa (HDI) Transmission Line and Substation: There are three substations and one 400 kV transmission line under this component. The Dhalkebar substation with 2x163 MVA transformers has been completed and operational. NEA is importing about 250 MW (1182 GWh) from this substation. The contract for Hetauda and Inaruwa substations (220/132 kV) is awarded to Siemens India and the contract is signed. The contractor is expected to be mobilized by end of December 2018. This contract is expected to be completed by December 31, 2019. 6. HDI Line: The construction of the 400-kV transmission line is under progress with more work- sites available after tree felling initiated in two districts. The piling-foundation works in Koshi river, which is one of the most critical activity that can affect the completion schedule of the Project, was initiated on November 25, 2018. The physical progress of the line is presented in the Table 2. The HDI line is expected to be completed by April 2020. Component B3: Transmission Lines and Integrated Financial Management Information System of NEA 7. Hetauda-Bharatpur (HB) 220 kV transmission line and associated substations. The physical progress has improved with the mobilization of 5-6 groups for construction of foundation and erection of towers. Considering the poor implementation of the transmission line, the Bank team suggested the Project Management Unit (PMU) to closely supervise and monitor the contactor’s performance. Similarly, construction work of the two substations (220/132 kV) at Hetauda and Bharatpur implemented under a separate contract is 90% complete. These substations are expected to be commissioned by March 2019, however, the HB transmission line is expected to be completed by November 2019. 8. Bharatpur-Bardaghat (BB) 220 kV transmission line. The construction activities were halted for over two years by the contractor. As a result, PMU had to terminate the contract. The new contractor is on- board since August 2018 and have started the site activities. The BB line is expected to be completed by December 2019. However, the Project team is facing community resistance in one location (Dumkibas), where the team working with the community to resolve the issues. Table 2: Construction status of Transmission Lines Name of T/L Total Towers Foundation Completed Tower Erection Completed HDI Line 792 541 (68%) 470(60%) HB Line 226 170 (75%) 100 (45%) BB Line 246 70 (29%) 70 (29%) Component C: Technical Advisory Services 9. All the activities proposed under this component are now complete. 10. Overall Implementation Progress: The current Project Closing Date is December 31, 2018. All the activities under the Project would not be completed by the current closing date. The Bank had agreed an action plan with NEA to complete their safeguards, fiduciary and technical activities during the six months’ extension in June 2018. The project team has adhered to the action plan and have shown significant improvement in implementation of this action plan. Considering good progress in implementation, the overall implementation progress has been maintained at “Moderately Satisfactory”. KEY POINTS DISCUSSED AND AGREED ACTIONS 11. List of agreed actions are provided in Annex 3. Critical actions are highlighted below: • The safeguards actions need to be continuously monitored and complied. The action plan with dates agreed between the Bank and NEA team needs to be followed closely by PMU. 2 • The pile foundation work in Koshi river needs to be closely monitored to complete it by this dry season i.e. by May 2019. • The HB line contractor needs to be supervised largely considering its poor performance in past. The Bank team suggested NEA management to deploy more staffs in the field to monitor construction of this transmission line. • An independent facilitator to be hired by January 30, 2019 to engage with communities to initiate a facilitated dialogue where there is communities’ resistance in construction of the transmission line. FIDUCIARY COMPLIANCE Procurement Performance: 12. The Bank team assessed the implementation status of the procurement plan. All major procurement activities have been contracted out and they are under execution. Regarding the two contracts that were terminated last year, the NEA has re-awarded the contracts, and mobilization has been completed for one activity. As compared to the last review, the Project has made reasonable progress in procurement management by awarding all the major contracts. Considering the progress made by the PMU, the procurement rating has been retained as “Moderately Satisfactory”. Financial Management (FM) Performance: 13. The review team noted continued efforts for updating accounts resulting in timely preparation of financial reports. There are no outstanding financial reports from the Project. The internal audit report for the first half of FY 2017/18 raised that inventory records were not reconciled which has now been reconciled. The external audit report of the Project for FY 2016/17 was qualified based on non-compliance with Nepal Financial Reporting Standards (NFRS) and non-reconciliation of inter unit accounts. The Bank team was informed that the reconciliation statement for FY 2017/18 has already been shared with the auditors. External audit of the Project for FY 2017/18 has been completed with preliminary reports yet to be received from auditors. PMU has committed to submit project external audit report by due date of January 15, 2019. 14. The total expenditure rate for the Project for FY 2017/18 is around 42% (NPR 1,049.26 million of NPR 2,503.3 million) particularly due to delay in forest clearance for transmission lines and procurement process for construction of substations. The Project has incurred total expenses of NPR 79.17 million up to September 10, 2018 which is 3.18% of annual budget of NPR 2,486.90 million for FY 2018/19. The total budget including Government/NEA source is considered adequate. Given the progress made on transmission lines, the additional disbursement of around USD 11 million is expected by December 31, 2018. The total disbursement as of November 30, 2018 is SDR 52.52 million (USD 75.55 million) which is 58.68 % of the total commitment of SDR 89.50 million. This includes the advance of USD 7.07 million made to the project Designated Account. In case the Project closing is not extended, it is estimated that around USD 51 million will remain unutilized in the Project (Grant- USD 10 million and Credit-USD 41 million). 15. NEA Entity Financial Management. The NEA management has committed to submit the external audit report of NEA Entity Financial Statements for FY 2017/18 by January 15, 2019. Based on the review of the financial management performance at the project level, the FM performance rating is retained as “Moderately Satisfactory”. SAFEGUARD MANAGEMENT Environmental Safeguards: 16. Tree felling progress and permits- The Bank observed progress in tree felling. In Dhanusha and Siraha districts, tree felling is already completed. The notice to carryout updated Initial Environment Examination (IEE) due to change in alignment in Makwanpur, Bara and Rautahat districts has been published on November 30, 2018 and study is expected to complete by January 2019, which is a prerequisite for obtaining tree felling permit. Tree felling is under progress in the remaining five districts of HDI TL, 3 which is expected to be completed by February 2019. Tree felling in the HB and BB TLs have been delayed due to delay in overall project progress (including termination of BB Contract). In BB TL, tree felling permit may need to be revisited as there is variation in the tree data due to long delay since permit was obtained. 17. Compensatory Plantation (CP) status- The total CP requirements in HDI TL section is around 511,896. The Project as of October 2018, has planted around 92,608 saplings. In 2019 the Project has decided to carryout CP in Makwanpur, Mahottari and Sunsari districts through concerned Division Forest Offices (DFOs). In HB transmission line, compensatory plantation was done by the district forest office. The total CP carried out was around 254,560 out of 1,314,425. In the BB transmission line, approximately 97,600 saplings were planted, out of total required plantation of 721,000. There was no compensatory plantation done during 2016, and 2017 in HB & BB transmission line. Project is planning to involve CFUGs to expedite the remaining CP works. All three TL sections agreed to submit the detailed CP plan for 2019 to the Bank. 18. Hot Spot study implementation status- Contractor has recently been mobilized for tower construction (pile foundation) near the Koshi Tappu Wildlife Reserve, which is one of the identified bio- diversity hot-spots. The PMU will orient the contractor before commencing the works near the biodiversity hot-spots and closely monitor the sites for compliance based on the Hot Spot Study recommendations. The Project’s environmental team plans to monitor the construction and labor activities closely and frequently (daily if needed) and ensure compliance with hot-spot study recommendation. There is no biodiversity hotspot identified in HB and BB transmission lines. 19. Occupational Health and Safety (OHS) - Overall improvements were noted regarding workers’ health and safety (H&S) in the HDI transmission line, albeit with some inadequacies. Improvements noted include use of Personal Protective Equipment (PPE), fencing of worksites at substation, provisions of water and sanitation, first-aid, general cleanliness of work sites etc. As agreed earlier, it is noted that BB TL section has endorsed and shared with the Bank an OHS guideline/plan prepared by them to strengthen the OHS compliance during construction works. Project informed that HDI and HB TLs will follow similar approach to that of BB TL. Considering progress made in forest clearance, commitments & planning for compensatory plantation in 2019 and plans for further improvements in the health and safety performance, environmental safeguard performance has been rated as “Moderately Satisfactory”. Social Safeguards: 20. The Bank team noted good progress in implementation of social safeguard actions. The Project has appointed social safeguard focal person, developed a communication strategy, and established a Grievance Redress Mechanism (GRM) as agreed. All social safeguard activities planned under Resettlement Action Plan (RAP) and Vulnerable Community Development Plan (VCDP) have been implemented in the HB transmission line. 21. Payment of Compensation and Resettlement and Rehabilitation Assistance for Tower Pad: The Project has shown significant progress in past few months in compensation payment for tower pads in both HDI and BB transmission line. The Project has transferred all outstanding compensation amount plus 10% into a special purpose account. Major reasons for outstanding payment in both transmission lines are absentee landowner, land used as collateral in the Bank, family disputes, and refusal to receive compensation amount. The Bank team has reminded the PMU that they need to ensure all Project Affected Families (PAFs) are informed about the special purpose account as part of the communication strategy. • HDI Line: In HDI transmission line, 86% (547 out of 634) PAFs have received compensation for land in 9 out of 10 districts that require land acquisition. In Makwanpur district, PMU is coordinating with the new Chief District Officer (CDO), who is the chair of the Compensation Fixation Committee (CFC), for valuation of the affected land and to resolve community grievances. The Bank team has advised the PMU to address issues where the tower pads have already been built; the PMU informed that 15 of the 4 constructed towers are on private land or land used by local communities. After the compensation amount is fixed by CFC, the PMU will be responsible to offer the compensation amount to the affected families. • BB Line: In BB transmission line, 68% (33 out of 49) PAFs have received compensation payment. The PMU is in process to make payment for rest of the PAFs. 22. Land parcels and structures under Right of Way (RoW): The Project has also made a progress in identification of land parcels and structures under the RoW for both HDI and BB transmission line. Identification of the land parcels and affected structures in the areas with community resistance remains outstanding. • BB Line: In BB transmission line, the project has identified about 300 land parcels and 62 private structures under the RoW. • HDI Line: In HDI transmission line, 123 affected structures have been identified. Inaruwa Division has already undertaken land parcel identification while the process has been initiated in Hetauda and Dhalkebar Divisions. These two divisions are expected to complete the process by end of December 2018. The PMU has developed a RoW compensation package and prepared the RAP amendment to cover land parcels and structures under RoW. 23. Non-Title Holders: In one district of the HDI line, the PMU has come to an agreement to pay non- title holders 66% of land valuation for tower pads, replacement cost for structures, and the equivalent easement fee for the RoW as title holder. The Bank team has suggested that this approach be adopted across the project allowing people to claim and prove usage through the RoW process or the GRM system. While this is a good development, given the apparent need for cabinet approval there is a risk that this will not be implemented in a timely manner. 24. Areas with community resistance: The PMU has prepared an action plan to deal with nine areas with community resistance identified in BB and HDI transmission line. For one of the community affected by the BB line, they have re-started consultations with the community. For HDI, the PMU has carried out consultations with the communities in six areas. Two have been resolved, and in two cases from Hetauda the team is making progress in reaching an agreement. In Jiyajor, where a complaint was filed to the Bank, the project has carried out several rounds of consultation. As requested by the community, awareness program on health impacts of the transmission line was carried out in September 2018. Preliminary study of alternative route alignment has been done and the project plans to discuss this further with the community. The Bank team has again strongly suggested that a facilitator be engaged in order to support settlements with various communities. 25. Given that there are still some outstanding compliance issues in relation to payment of compensation for land and land use under the tower pad, the social safeguard performance rating has been maintained as “Moderately Unsatisfactory”. 26. The overall rating for Safeguard Management has been retained as “Moderately Unsatisfactory”. The implementation progress will be closely monitored, and monthly progress meetings will be conducted; performance will continue to be monitored against the May 2018 Action Plan. Annexes: Annex 1: List of Officials met Annex 2: Updated Results Framework Annex 3: Agreed Actions as of November 30, 2018 Annex 4: Rationale for the Proposed No Cost Extension 5 Annex1 List of Officials met Ministry of Finance Dr. Ram Prasad Mainali, Former Under Secretary, IECCD Mr. Ashish Aryal, Section Officer Ministry of Energy, Water Resources and Irrigation Mr. Dinesh Kumar Ghimire, Joint Secretary Mr. Sagar Raj Goutam, Senior Divisional Engineer Nepal Electricity Authority Mr. Kul Man Ghising, Managing Director Mr. Braj Bhusan Chaudhary, Deputy Managing Director, Transmission Directorate Mr. Radhe Sharan Mahato, Project Manager, NIETTP Mr. Ishwori Prasad Jaiswal, Project Manager, HB and BB Transmission Line Mr. Asheshwor Shah, Project Engineer, HDI Transmission Line Mr. Amit Karna, Project Engineer, HDI Transmission Line Mr. Nirmal Jha, Project Engineer, HDI Transmission Line Mr. Gajendra Chauhan, Project Engineer, HDI Transmission Line Mr. Rabindra Chaudhary, Director, Environment and Social Services Department Mr. Umesh Bhandari, Senior Accountant, NIETTP Mr. Raju Gyawali, Safeguard Officer, Environment and Social Studies Department Mr. Kashi Chaudhary, Team Member, ESSD Mr. Gajendra Kumar Chauhan, Team Member, ESSD Mr. Rabi Kumar Chaudhary, Team Member, HDI Line Angelique International Ltd. (AIL-LTB) Mr. Anjani Kumar Rai, Site-In-Charge, HDI Transmission line Mr. P. K Chauhan, Project Manager, HDI Transmission line i Annex 2 Updated Results Framework Project Development Objective Indicator Baseline Actual Actual Actual End Target (27-May- (15-May-2016) (30-May-2018) (30-Nov-2018) (31-Dec-2018) 2011) Cross-Border Transmission 0.0 0.0 293.0 293.0 1000.0 Capacity (MW) Quantity of electricity imported 0.0 0.0 700.4 1152 744.0 from India into Nepal (GWh) Intermediate Results Indicator Construction Progress (HDI 65% foundations 66% foundations 68% foundations line) 0 completed and 53% completed and 53% completed and 60% Line operational towers erected towers erected towers erected Final Transmission Final Transmission Final Transmission Final Transmission Transmission Master Plan 0 Master Plan Master Plan Master Plan developed Master Plan developed developed developed Hetauda-Dhalkebar-Inaruwa 0 0.0 0.0 0.0 285.0 Transmission line (kms, core) Dhalkebar- Bhittamod 40 0.0 30.0 40.0 40.0 Transmission line (kms, core) Muzaffarpur- Sursand 85 0.0 80.0 85.0 85.0 Transmission line(kms, core) Hetauda-Bharatpur - 0.0 12.0 17.0 75.0 Transmission line (kms, core) Bharatpur-Bardaghat 0.0 0.0 0.0 0.0 75.0 Transmission line (kms, core) ii Annex 3 Agreed Actions as of November 30, 2018 2 Agreed Actions Agreed timeline Remarks Technical Submission of the BER for Hetauda and Inaruwa substation October 30, 2018 Completed Start pile foundation work at Koshi River November 15, Completed 2018 Environmental & Social Safeguards Detailed Plan for Compensatory Plantation for 2019 rainy December 31, season (for all three TLs) 2018 Updated IEE as needed, and updated tree data for all necessary January 30, 2019 sections Preparation of OHS plan for HDI and HB TL Section, and December 31, monitoring of compliance with H & S in all work sites 2018 Orientation to contractor on bio-diversity hot-spot study December 31, recommendations, close/ frequent monitoring of the activities in 2018 hot-spot areas, and walk over survey to identify site specific mitigation measures in Hot Spot area 2 A separate action plan developed in May 2018 is being separately monitored by Bank team apart from few actions listed here. iii Annex 4 Rationale for the Proposed No Cost Extension 1. The original project (IDA Credit 4902-NP and IDA Grant H660-NP) was approved on June 21, 2011 and an additional financing (IDA Credit 5263-NP and IDA Grant H858-NP) was approved on June 24, 2013. The Closing Date for the original project and additional financing was first extended from December 31, 2016 to June 30, 2018, taking into consideration disruptive impacts caused by the earthquake in 2015 and trade disruption in 2016. Against the government’s request for extension for 22 months, an extension was granted again for six months only (up to December 31, 2018), on understanding that further extension could be considered provided that the project demonstrates significant commitment through improvements in safeguards management and implementation progress on the ground. 2. Rationale for Restructuring. 3. The Project is of strategic importance to Nepal and to the regional energy integration. With the completion of the Dhalkebar substation in August 2018 supported under the Project, Nepal can import additional 290 MW from India through the cross-border transmission line from Dhalkebar (Nepal) to Muzzafarpur (India), effectively ending the load shedding that had haunted Nepal for nearly a decade. The Project will enable imports of electricity to Nepal during the dry season and exports of surplus electricity to India and Bangladesh in the wet season, as Nepal is scaling up its hydropower development. 4. The proposed extension would allow the Project to complete the implementation of the remaining works and environmental and social safeguards activities, achieving its development objectives. Over the last six months, the Project’s implementing agency Nepal Electricity Authority (NEA) has demonstrated strong leadership and commitment at the managing director and deputy managing director level, strengthened the human and institutional capacity of the project management team, and been decisive in taking corrective measures against non-performing contractors. 5. In relation to safeguards, NEA have demonstrated significant improvement in its commitment to address all outstanding safeguards issues; there has been a strong management attention towards effective implementation and significant progress towards compliance. Evidence of strong management commitment is set out below, along with the reasons NEA need more time to complete outstanding requirements. The proposed extension would also allow for expertise to be mobilized to help the project team fulfil the remaining requirements in an effective manner. 6. As the Project has made tangible progress in addressing the safeguards and implementation issues that had previously affected the project, the Bank team is reasonably confident that the remaining activities would be completed by April 30, 2020 except for the implementation of the enterprise resource planning (ERP) system in NEA. The bidding documents for procuring ERP system have been prepared and discussions are on-going to take up this activity under the Grid Solar and Energy Efficiency Project (P146344) as it would not be possible to complete this activity within the proposed time extension. In absence of the proposed extension, there would be unsustainable fiscal burden on the Government of Nepal which may also jeopardize the Bank’s ability to supervise any outstanding safeguard issues as required per the Bank’s policy. Annex 1 presents details on verified project progress between July and November 2018 following the last extension, expected progress by December 2018, and the estimated completion schedule between January 2019 and April 2020. iv 7. The Bank team has also strengthened project implementation support. To supervise the physical implementation and safeguards compliance more closely, the team has set up bi-weekly safeguards meetings and monthly team meetings with NEA and taken an active role in supporting and monitoring the implementation of the agreed action plans. Regular high-level meetings and field visits with the management of NEA and the Bank Management have been organized to bolster implementation and address any issue that may arise during implementation. Most recently, the Country Manager of the Bank, NEA Managing Director and respective Bank and NEA teams jointly carried out a site visit on November 26-28, 2018 to assess and confirm the reported progress. The Bank team will continue this joint engagement to identify and address emerging implementation challenges and/or new safeguards risks in a timely and effective manner. 8. The Task Team confirms that the requirements of Bank’s Directive on Investment Project Financing regarding extension of Closing Date will be met, specifically, (i) the project objectives continue to be achievable; (ii) the performance of the Recipient remains satisfactory; (iii) the Bank and the Recipient agree on actions that will be undertaken to complete the remaining activities of the project; and (iv) there are no outstanding audit report or issues for the Project and the Entity. The Task Team has also taken into consideration the “relationship factor” with NEA and the Government of Nepal which is critical to continue our engagement in the energy sector through policy reforms and catalytic investment support. 9. The proposed restructuring will not change the Project Development Objectives, Project Components Costs, Institutional Arrangements, and Risk Analysis. Nevertheless, the proposed extension would provide an opportunity to strengthen the client capacity in several areas, especially on social and environmental issues. 1. Physical Progress Update and Completion Schedule 1.1.Transmission Lines Transmission Lines Jun- Nov 2018 By Dec 2018 (Expected) Jan-Dec 2019 Jan -Apr 2020 (Completed) (Planned) (Planned) HDI 400 kV Foundation: 10 Foundation: 10 Foundation: 180 Foundation: 67 transmission line Erection: 20 Erection:19 Erection:228 Erection:76 (Cum. 3 towers: 469) (Cum.: 488) (Cum.: 716) (Cum.: 792) HB 220 kV Foundation: 4 Foundation: 13 Foundation: 51 Foundation: N/A transmission line Erection: 6 Erection:4 Erection:93 Erection: 27 (Cum. towers: 102) (Cum. towers: 106) (Cum. towers: 199) (Cum. towers: 226) 3 Cum.= Cumulative v BB 220 kV Foundation: 0 Foundation: 5 Foundation: 120 Foundation: 56 transmission line Erection: 0 Erection:0 Erection:120 Erection:56 (Cum. towers: 70) (Cum. towers: 70) (Cum. towers: 190) (Cum. towers: 246) A new contract was awarded in September 2018 after termination of the non- performing contract. 1.2.Substations Transmission Lines Jun– Nov By Dec 2018 (expected) Jan-Dec 2019 Jan-Apr 2020 2018 (Completed) (Planned) (Planned) Dhalkebar 220 kV Dhalkebar substation commissioned substation in August 2018. Hetauda and Inaruwa 220 Evaluation of selection of a new • New contractor selected. Civil Works: 100% Equipment installment kV substations contractor was complete after • Contractor mobilized & Equipment installment:80% &commissioning: termination of the non- survey work completed. 100% performing contract. • Manufacturing order done. Bharatpur 132 kV Physical Progress: 68% of the works Physical Progress:68% of the Civil Works: 100% Substation completed works completed Equipment Installment:100% Hetauda 132 kV Physical Progress: 89% of the works Physical Progress: 92% of the Civil Works: 100% Substation completed work completed Equipment Installment:100% 2. Safeguards Update and Completion Schedule 2.1. RAP Implementation Transmission Lines Jun- Nov 2018 By Dec 2018 (Expected) Jan-Dec 2019 Jan -Apr 2020 (Completed) (Planned) (Planned) A. HDI 400 kV transmission line Compensation + R&R Tower pads: 88% Tower pads: 90% Tower pads: 100% payment for land R&R: 100% parcels affected Unpaid amount (plus 10%) deposited in an by tower pad escrow account Compensation • Evaluation by subcommittee is • Evaluation of Structures • Evaluation of structures under Payment for completed in Sunsari, Saptari & Siraha under Inaruwa Division Dhalkebar & Hetauda divisions structures under districts of Inaruwa division. completed. completed. RoW vi • Notice of structures falling in RoW in • Notice of structures falling in • 100% disbursement of Dhanusha, Sarlahi & Makwanpur published RoW in Rautahat and Mahottari compensation for structures published Easement fee (RoW) Identification of land parcels of Sunsari, Identification all districts • Identification of land parcels in 0% disbursement of easement Saptari, Udaypur, Siraha, Mahottari, except for Makwanpur Makwanpur completed. fee. Rautahat was initiated. completed. • 70% disbursement of easement fee. Tree Felling • Tree felling completed in 2 districts, 1 • Tree felling started in • Tree felling completed for under progress, and tree felling contract Sunsari, Sarlahi & Mahottari. Udaipur, Saptari, Sunsari, Sarlahi awarded for 2 districts. • IEE submitted for necessary and Mahottari. • Tree felling completed in Dhanusa and approvals for Bara, Rautahat & • Tree felling permits obtained, Siraha. Makwanpur. and tree felling completed for Bara, • Tree felling under progress in Sunsari. Rautahat and Makwanpur. • Tree felling contract awarded for Sarlahi and Mahottari. • Forest land use permit obtained for Bara & Rautahat. • Tree felling permits obtained for Udaipur & Saptari, and agreement achieved with Community Forest User Groups. Compensatory 18% 18% (No plantation in dry 82% Remaining compensatory plantation season) plantation will be carried out in the 2020 monsoon season. B. HB Transmission Line Compensation + R&R Tower pads: 90% Tower pads: 100 % N/A N/A payment for land parcels affected Unpaid amount (plus 10%) deposited in an for tower pad escrow account Compensation 90% 99 % 100% N/A payment for Unpaid amount (plus 10%) deposited in an structures under escrow account RoW Easement fee (RoW) 80% 85% 100% N/A Unpaid amount (plus 10%) deposited in an escrow account vii Tree Felling • Tree felling permit obtained for all 95 % trees felled 100% trees felled districts • 89% tree felled Compensatory • 24% plantation completed 24% (No plantation in dry 74% Remaining compensatory plantation season) plantation shall be carried out in the 2020 monsoon season. C. BB Transmission line Compensation + R&R 60% 65% 100% payment for land Unpaid amount (plus 10%) deposited in an parcels affected escrow account Compensation for Sub-Committee formed to fix the Compensation payments 100 % structures under compensation amount of the structures. initiated RoW Easement fee (RoW) Sub-Committee formed to fix the 80% payments completed 100% compensation amount of the structures. Compensation payments initiated Tree Felling • Tree felling permit obtained for all • Tree felling permits obtained 100 % trees felling completed. districts except for Nawalparasi. Since for Nawalparasi east and West. Nawalparasi is divided in states 5 and 3, • 30% trees felled. process has been initiated to get two permits. • 24% trees felled Compensatory 14 % trees planted. 14% (No plantation in dry 86% Remaining compensatory plantation season) plantation will be carried out in the 2020 monsoon season. viii