Pakistan : MFF - Renewable Energy Development Sector Investment Program (formerly Renewable Energy Development Facility)

Energy / Renewable energy generation

The Government has delegated authority to the provinces to develop power generating capacity of up to 50 MW. RE programs are a means to deliver this mandate. In May 2005, the

Government announced a target calling for RE to reach 3.5% and 6.0% of the total energy supply mix by 2015 and 2030, respectively. RE development is compatible with the Government's twin goals of energy security and promoting indigenous resource utilization. RE development is also one of the key features of the Government's poverty reduction and

environmental agendas. RE supports electrification in remote and rural areas, including those not covered by the main grid. Employment generation and improvements in social well-being are two by-products of RE development.

Part A: Clean Energy Development

Small to medium-size hydropower stations and other sources of RE generation units will be constructed during the program period.

Part B. Due Diligence Support

Feasibility studies and other due diligence work on new RE schemes.

Part C: Capacity Development

Introduction of a capacity development program at federal, provincial, and project levels.

Training workshops conducted from time to time for enhancement of capacity of PMU staff of EA.

Only 30 MW added to generating capacity till loan closing. 2 pending subprojects will add 10 MW more are expected to be completed by June 2019 and after loan closure are being funded by government. The delay in completion was because of changing government priorities and cancellation of Tranche 3.

Not achieved as MFF did not perform as designed primarily due to changes in government priorities.

8 feasibility studies done.

Only category B subprojects will be eligible for the Project. The independent power producers are responsible for the conduct of environmental assessments for the subprojects in compliance with the following documents:(i) ADB's Safeguard Policy Statement (2009); (ii) the REDSIP environmental assessment and reporting framework, and (iii) national environmental regulations and guidelines. For each subproject an initial environmental examination report and environmental management plan with a corresponding implementation budget will be prepared.

For the sample subproject sites, the perceptible negative environmental impacts such as noise and visual intrusion are negligible, mainly because of the considerable distance between the turbines and the nearest settlements. Subprojects will not endanger migratory birds or bats, as there are few in the wind farm area, which is not located in the main habitat or along the main migration routes of migratory birds. In fact, extensie wind power development will help reduce wind speeds by extracting energy from air flows. Disturbances associated with construction such as land disturbance, construction noise, traffic congestion, and waste generation are normally temporary and limited in scope. implementing a carefully designed social and environmental management plan, which inlcudes monitoring arrangements, will further mitigate these negative impacts.

In case of any significant or related impacts on tribal people under any subproject, these will follow the requirements as set forth in the indigenous peoples development framework (IPDF) as agreed by ADB, including special provisions for all TP households to ensure that their living standards are not adversely affected as a result of land donation or in the event of any loss of non-land asset and impacts on their livelihoods. As also laid down in the IPDF, for any impact on land involving traditional and burial rights of the TPs, the legal provision laid down by the Government and the provinces pertaining to transfer of land will be duly followed.

The provinces will ensure acceptance of subprojects through effective community participation in selecting and implementing subprojects in accordance with ADB's safeguard policies and the renewable energy policy, as supplemented by the resettlement framework and Environmental Assessment Framework.

ADB undertook extensive consultations with civil society during project preparatory technical assistance. Extensive field appraisal, survey, and community consultations were undertaken on eight subprojects under the first PFR. This work was part of project preparatory technical assistance and ADB due diligence missions. Particular attention was given to traditional decision-making mechanisms. Social and poverty impacts were assessed. Compensation packages and short RPs have been prepared for the subproject components. The same arrangements will be followed in future with this RE resource

and others in both these and the other two provinces.