Pakistan : MFF Power Transmission Enhancement Investment Program II Tranche 3

Energy / Electricity transmission and distribution

Energy market transparency and efficiency improved. Transmission infrastructure improved.

Coverage, reliability, transparency, and quality of the power transmission service in Pakistan improved.

Transmission system capacity augmented and expanded.

Grid connected large scale battery energy storage system (BESS) installed.

Procurement of EPC contractor is ongoing.

Recruitment of consultants is ongoing for BESS project.

The NTDC will acquire about 311 acres of private agriculture land owned by 107 families for the three new substations. Installation of 250 km transmission lines will temporarily impact at least 3,000 acres of cropped area and 3,000 wood trees, owned by 598 families. The farm land is cultivated by landowners without involving any tenants, farm workers, or leaseholders. Thus, only the owners of farm land are affected, and they will be compensated for the affected crops and trees. Transmission lines will be constructed in three phases: (i) excavation and concreting of tower foundations, (ii) erection of towers, and (iii) stringing of conductors. Owners will be compensated for crops that are temporarily affected during construction, in accordance with ADB's Safeguard Policy Statement. No physical displacement of affected persons will occur under any subproject of Tranche 3, although 50 of 63 affected families near Lahore North substation will lose 10% or more of their productive land.

The land acquisition and resettlement framework of the MFF prepared under Tranche 1 was reviewed and confirmed to remain valid for Tranche 3. The NTDC prepared and endorsed three draft LARPs for new grid stations, which are consistent with ADB's Safeguard Policy Statement and approved land acquisition and resettlement framework. ADB disclosed the draft LARPs and revised LARPs on 23 April 2018, 24 and 251 May 2018. For the grid station component, the NTDC will update the LARPs following the notification of Section 6 of the Land Acquisition Act, and this will be a condition for contract award. For the transmission line components, the NTDC will update the LARPs based on the approved route after the contractors conduct the check survey. ADB will approve and redisclose all updated or final LARPs. The NTDC will monitor the LARPs internally, while an independent monitoring consultant will prepare the third-party monitoring reports and validate implementation and payment to affected persons. Construction works for the new grid stations will start only after ADB's approval of the third-party independent monitoring report validating disbursement of compensation to affected persons in accordance with approved LARPs and the NTDC's written confirmation of the completion of the compensation process. For transmission lines where compensation payments follow the phased and section-by-section implementation of the works, progress will be reflected in section-wise LARP addendums, internal monitoring reports and confirmed through third-party validation for each section. The NTDC will provide section-by-section written notification to ADB confirming adequate, fair, and timely completion of the compensation, and will ensure that land is restored to its original condition after completion of works. Similar arrangements will apply to all transmission lines in other tranches. ADB and NTDC will disclose all monitoring reports after approval by ADB. An environment and social impacts cell has been established within the PMU and its safeguards management capacity is being strengthened through the FMC