Due Diligence Report

The 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.

Due Diligence Report Document Stage: Final Project Number: 38456-03 February 2010

PAK: MFF for Power Distribution Enhancement

Program (Tranche 2)

Jubilee Town 132 kV Grid Station and Transmission Line

Prepared by Lahore Electric Supply Company (LESCO), Governent of Pakistan for the Asian Development Bank (ADB).

Islamic Republic of Pakistan

In association with

Asian Development Bank (ADB)

Pakistan: Power Distribution Enhancement MFF Project

(ADB TA Loan No. 2178-PAK)

ADB MFF Tranche 2 Subproject No. 5.1.2

Jubilee Town 132kV Grid Station and Transmission Line

Due Diligence Report

February 2010

Lahore Electric Supply Company (LESCO)

Due Diligence Report

Jubilee Town 132kV Grid Station and Transmission Line Subproject February 2010

A. Background

1. The Government of Pakistan has requested financing from the Asian Development Bank (ADB) for implementing the Power Distribution Enhancement Investment Program (the program), to be executed through a Multi-tranche Financial Facility (MFF) divided into three tranches or groups of subprojects. The Ministry of Water and Power is the Executing Agency (EA) and the Lahore Electric Supply Company (LESCO) is the Implementing Agency (IA). Each of the program’s tranches will constitute a project which, in turn, will be divided into several subprojects involving the construction and/or upgrading of the substations and transmission lines.

2. The city of Lahore has been expanding in all possible directions. In the south of the city due to availability of lands in last five years there has been a trend of developing housing colonies. Currently almost a dozen of housing colonies are being developed in this area as Bahria Town, Sukh Chayn, Green Ford, NESPAK, Eden Lands, Valencia, DHA Rahbar, Jubilee Town and Central Park. So the domestic, commercial and industrial power demand of the area is increasing rapidly. Due to the increased power demand of the area the existing grid stations has become overloaded and insufficient to meet this increased demand, there is need to improve the power supply system of the area. For the purpose LESCO is planning to construct three new grid stations in this area named DHA Rahbar, Jubilee Town and Central Park, all these three grid stations are included in tranche 2 of the program. This Due Diligence report is for the Jubilee Town 132kV grid station and transmission line subproject.

B. The Subproject

3. This Subproject Jubilee Town grid station and transmission line comprises a 132 kV grid station named Jubilee Town Grid Station and a 1,667 meters long 132 KV double circuit transmission line. It is one of the subprojects included in Tranche 2 of the Program. The new grid station has been designed to construct at Jubilee Town under developed housing colony. Jubilee town is located in the south of Lahore city on the Canal road along the Bahria Town. The Jubilee Town society has donated the required land to LESCO voluntarily. LESCO has taken over possession of the land and transfer of land to LESCO is in progress.

4. An under construction 132 kV WAPDA Town - Suckh Chayn transmission line is passing in front of the Jubilee Town, and LESCO has planned to link grid station with this line by constructing a new 1,667 meter 132 kV DC transmission line. The initial Part of 55 meters will pass on the Right of Way of irrigation and highway department and the remaining portion of the line will be traversed with in the Jubilee town housing colony along the road.

5. This substation will be constructed on 2.5 acres of land. And The 1,667 meter long transmission line will require 7 SPA, 3 SPD towers and 3 SPG poles. Of these 13 towers and poles, one pole will be constructed on the land of irrigation department along the canal and 12 towers/poles will be constructed along the road within the Jubilee Town premises. (see Figure 1 overleaf which presents the line route).

Figure 1: Sketch of Jubilee Town 132 kV GS & TL

C. Subproject Impacts

6. This subproject comprises of two components one is 132 kV grid station and other one is 132 kV double circuit transmission line. As for as substation is considered it will require 2.5 acres (1.01ha) of land. Jubilee Town Housing Society has already donated this land to LESCO. And LESCO has taken over the possession of land. Transfer of the land to LESCO is in progress (see appendix 1).

7. There is neither any structure nor any tree on this piece of land. So there is no land acquisition required for the grid station. And to traverse transmission line one pole will be constructed in the right of way of irrigation department along the canal and remaining 12 poles will be constructed along the road with in the right of way of the road in the same colony, so there is no private land required for the line too, and there is neither any structure nor any tree under the proposed transmission line.

D. Due Diligence

8. According to the design grid station will be constructed on 2.5 acres of land. Land for this purpose has been granted by Jubilee Town Housing Society voluntarily. There is neither any structure nor any tree on the grid site and there is no claim of any person on this site. There is no effect of this substation on any person. The second part of the subproject is the 1,667 meter long transmission line. The new transmission line will require 13 poles, of which one pole will be constructed in the right-of-way of irrigation canal and the remaining 12 poles will be constructed along the road of the housing colony.

9. No structures or any crop or tree are found under the proposed line, and the housing society has provided due clearance to the line at the time of plotting. The Housing Society has no objection regarding the sub project (grid station and transmission line). Thus, there is no involuntary resettlement involved in this subproject and the preparation of a LARP for the Jubilee Town grid station and transmission line subproject is not required, hence this brief Due Diligence Report has been prepared for the documentary requirements of both ADB and LESCO.

E. Community Consultations

10. Two community consultation meetings were held at the subproject site. Both the meetings were held at Trieen village the nearest settlement to the grid site. One meeting was held with male group and other one was with female. People are pleased by the project and they supported this subproject. None of the community member opposed the subproject. (see appendix 2)

11. The local communities’ response (awareness, perceptions and preferences) for the Jubilee Town subproject and resettlement related matters are summarized as follows:

This subproject is necessary under the current local conditions keeping in view the power shortage of the area ;

Contractor should respect the local norms; and,

Construction work should be completed in time.

Appendix 1: Land Documents for Jubilee Town 132kV Grid Station (LESCO)

Appendix 2: List of Participants in Consultation Sessions (Jubilee Town)

Men's Groups Women's Groups

No. Name Status AH No. Name Status AH

Group 1 Group 1

Trieen Trieen

01 Muhammad Ameen Shopkeeper - 01 Aysha Bibi Housewife -

02 Khalid Ahmad Shopkeeper - 02 Ghulam Ruqaia Housewife -

03 Irfan Haider Govt. employ - 03 Sajida Batool Housewife -

04 Waqar Hussain Land owner - 04 Halima Bibi Labour -

05 Abdul Majeed Student - 05 Shamim Akhtar Student -

06 BashirAhmad Labour -