(j)~~~!21 PAKIS~ PART A - INITIAl ENVIRONMENTAL EXAMINATION FOFtS',TPJ'RA

DAM

PRQGRAMlACJMr( PArA:

Country: Palds!""

ObjectiVe: To provide access to reliable source Of electrICity ahd Of water Irrigation thus increasing economJc opportunities to the u:~~::~~ area Of GIIgft..Baftistan. To Improved quality 01 life Of the poor tho aroa through supply 01 potable drinking water by ~~;~~~:~ hydr_r plants ahd irrigation systeIil of WAPDA'. high ~i!lct at Satpara Dam.

A<:IMty Nam.: Satpam Dam Construction completion . •

Funding Bagl .. : FY z010 Funding End.: FY 2011 LOP.Amount: $ 26 million

lEE Prapenod By: Roaario Calderon DII1II: August 17, 2010

tEE Amandmoilt (YIN): No ~ "yes", Fil<> nalne & date Of original

EIMRONMENTAL ACTION RECOMMENDED; (Place X where applicable)

·'CategoricaJ Exclusion Positive Determination wth Cohdltlons

[ I [ I I XI

Def."", Negative Detennlnotion Exemption

1.0 BACKGROUND AND PROGRAM DESCRIPTION

1.1 I'IIrposeandScopeOfIEE

[ I [Xl I I

The purpose Of this initial environmental examination (lEE), in accordance with 22 CFR is to providf!: a review Qf the reasonably foreseeable effects on the environment 88 .well recornrnend threahold dectslons for construction completion Of the Satpara Dam ... part Pakistan Signature Energy Prooram. This lEE provides. bOo! s1.atement 01 the factua".;Jtil, .i~n".: for. th .... hold decision based on available sIlJdy developed by the Govemment of ...

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1.2 Background

The basic obj_ of USG support for tho completion of the SIItpara muft"JIurpose proJ~ are: (1) Reduce tho electricity supply/demand gap and provide economic op In underdeveloped that are vulnera!Jl~ to extremiOm 'In Northern Areas qf ·GlIgft- ea_n ea (2) Add power generation capacity en~ ""orgy to the·lsoIated and ... moJB town of Skardu; (3) Store .water for the Companion down stream irrigation P'rCiect&; (4) PrOvide potable -drin . hg water and (5) Control~ood<

The Satpara Dam proJect Is located near the city of Skardu in ihe G1lgft-Ba1tlatan le' (formally 'Northem """os) of Paklatan. Since 1850', there have been """"rei dams bulft. nd destroyed over time. The ""lOr dams on the existing 8atpare Ial<e were not onginaerad rather p!imitl'le. Th_ dams were buin at that llmo for flood control, to provide water for residential as well as lnigational use. Thlo project will be the fll1ll 8<1glnaerad alJdlll constructed dam "on the 8~me site.

The muttipurpose projOcl designed for 17.~ MW of power generation (ene<gy equival to 106.25 GWh per annumi, irrigotion supplies to 15,536 acres ·of land, and 3.1 mWion 9a1*of potab1e drinking water to 280,000 j;>eopIo of Skardu and surrounding villages. The com . project enviaionl four omao hydro power statiOnl with an _ated 128 _ high dam end . canals for lnigelion purposes. Skardu Is an Isolated genoration end distribution system'. is not connected to the national tmlSmission sysIem. Upon completion of the pnlJect, the W and Power Development Ai,rthartty Will be resRDnsible "for operatlons and matntenance of project. Electricity will be soid to the Gilgft-Baltislan Public Wort<s Department (GBPWD),

The dam is located on the Satpara Nullan about 6 kmeoLlth of Skardu city. The Satparil Nu 10 the left tributary of the Indus River and. flows from _ to north. Tho Nullah 8larta Deosal plana. fl_ through Satpare vil1aga and Satpara city end finally dlad1argos Into I RIver_The 8atpara basin has two cfl$tlnct parta; the upper part conslsUng of high aMude· _in, which contnbuteo almost 90% of the flow and the lower (downstream of Satpara) provides !\boUt 10% of the flow. .

A feasill\TIty study on the Satpara Dam Project was flnlt ccmploted In 1988 and a PC-I was oomp1a1ad in 2001. WM'DA completed deaign and tender documorrts In 20.02. Conau~ms for design review ./iind cc;mstructlon supecvlalon were also ~jected- at the enc:t of 2002, A nWi PC-I .... finalized In May 2008 .and the same was approved by the Planning and Devel DiviSion in July 2009 to update the budget.

1.3 Prior Envlronmontal ~polt$ and _pilon of Activ_

In PakiStan, the Water & PO'Ner D8ve1opment AuthoritYs (WAPDA) environmental u . responsible for finaflzfng environmental reports. In some e&i&1S the feasibility atudy consu nt also completes an EtA for the project Under the Pak1s1an Environmenta1 Protection Ad. no project In\lOlvihg conslruttlon actlvitI.. or any change in the physical environment n commenoa until an lEE or EtA is completed and submitted to the Fedoral or Provincial EPA for approval. In case of the Satpara pnlject, WM'DA'. environmental un~completed the a11a

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lEE In 2002."" S8tp11ra falls in a fedarally controlled area, the lEE was submitted to tlte F EPA for approval.

Divinarll & Bilmen Irrtemational baoed 'in Lahore completi!d a _ie -.men! report d February 2006. This report concluded that the project area is In a ... smlcally actIYIIy a •. Therefnre, the report concluded tIta\. short array SeIsmic ~rt<.18 rec6mmeilded to man or solsmicity of the _ region 01 Nanga Parbat where the project is located. WAPOA revi<' ..jed the engineenng design and revi6ed tham based on the ...... man!. However, the Seismic 10k A&seMment, Indicate a low probability for the 0CCUII'MC8 •• ProbabaIlSlic Analysis has maximum _ of ground motlonB ranging from 0.31; to O.38g (with an average of 0.34g) . rBIum period of 10,000 )'6aI3 ( I%' probablHy ·of 6Xceectence In 100 ye.,.),. This is in sgniem(IIIt with the PGA (O.34g) wor/clld oot from l/Je detormfilistfo analysis and is, Ih&n.njn; so/ecteclas Maximum Design AcceleraUon."

In additional, WAPDA awartledtlte project construction to reputable .contractors tltro competitive bidding. WAPOA selected four companies for engineering and construdlons· commenced work. in 20031 2004: (1) Pakistan Engineering Services (F'VT) Ud Consorti prime eontrador for dam design and conotrudJon oupervIaJonj (2) Deocon Engi-"ng l .­eMl & hydro steel structUres; (3) China Machine IntemationBlCorporation (CMIC) - e mechanicalwort<w for power house; (4) China Central Power Group (CCPG) - irrigation •

The Satpo ... Dam project _ inltiated in April 2003. Due to lack of funding. co is prcgressit1g slowly and the following ._ """ain to be completed:

Tabl.1- Project Sl,ttus (Aa of July 1, 2010i

No.

1. 2.

3.

4.

.~~

Comp~on Outol!lndlng Complellon

Daeci1pt1on of Wort< Worta Pariod From Status .Dataof·

Fundlna Dam 91.0% 9.0% 8 months Power House 3 & 4 0.0% 100% 22 months Completion of Power

99% 1% 6 montho Houso 1 &2 I_on 75% 25% 8 months

A- CMI WorQ/ Pam

Only another 5 teet of dain height oo_on 10 left out 01 tho 125 ft design. Simiia cons.truct:ion on all other ~am related civil WOfks ilclu.ding roadways, embenkments, . access rQeda. opIllways. and surge chamber .... re about 91.% complete.

B. POWVI' Genoratlori Ho.,...

Two small genomon h~ noodto be conotruded to aocommodate a 2.0 MW tid 1.8 MW capacity hydro turilines. The powerhouaeo will Include noceuary switr:hJJ r

3

and a transformer. Both these power houses will be cooned.ed via a 11 kVtra'lSIlliul'''' ffne to the onaft. switch yanl.

C. trrigation Sya1Mn

111e Irrigation system con_ ofa sIX foot wide osmer1l8d channel that will be, ~~:'~ to deliver water In both eaat and west directions. The water 8l<iting the hydro b. be gravity fed Into the. channels. The water in the channel. will flow downhiD southern area of Skardu to aJltivata land thot is p-.tly unutilized fOf· any pu~*e. Already about 75% of theae two channels h."" bilen complated and only construction activity remall)8.

2.0 COUNTRY liND ENiIIRDNMENTAl-INFOIUlATlON (BASELINE INFORMATlON)

Studl .. conducted by the GoVernment and donOf agencies ' .f> In Pakistan have highlighted number fJf environmental ~. Broedly, the areas of concern identified Include water, ..,. .... pollution and_te managemen(.lnigoted agrte<4ture, and biodivarllty. OWIrall, these. -::::t. reVeal deterioration tn all these areas'. The Increasing pollution of water, air, and lanij ex to have an,enomious impact on poople~s health, especially that of vulnerable groups such •• child"",. The quality and quantity of _bIe natural , •• o,,,,,,,,, ·such .. water forests and

othervegetatlon, and key bIologil:a1 habitata have decrmed. The ~:~~~:;~i:~~+ and civil society have not raaponded adequately to moet th ... challenges, been some exceptiona, su,ch as the switchoyar to cleaner fuels in the tran.port -

10 NATIONAL ENVIRONMENTAL LEGISLATlON'o'

3.1 Paldstan environmental ProtoctIon Ac;ll891

The Pakistan Enlllronmentai Protection Act, 1997 Is the basic loglslotiVe tool empowering government to fnJmo ragulatlons for the protection of the environment. rna Ad to ait, water, ooil and noiss 'pollutlon, as well as the handling of hazardous waste. have been preoorlbed tor those who contravenli·the M. provIsi<ins. The powel1l of the and Provincial Environmental Protection AlIenci •• (EPAs) ware .180 under this legislation and they have the jlO'Mtr to conduct inquiries Into poaolble of environmental lawa either of their own accord, or L!pon tho registration of a complaint.

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Under this Act, no project involving cons1ru:tion activities ot any Change In tho ~Sifa environment can commence unleas the fulllllm.nt 01 prerequloHa to ecnduct an lEE 01" EIA submittal of. report to the Foderal or Provincial EPA.

3.2 P.kIflan Etnrtronmenta,l Prol8Ctlon Agency (Rovl<lw of lEE and EIAI RtguJationa

The PEPA review of the 2000 lEE l!I)d EIA regulations (the 'rogulotlona1 provid .. the fiE' """"Ijo' dalails on the prepar1!tion, aubmisoion and, nMew of the lEE and the EtA reports, regulation cIa .. 1Iiea projects on the basis of expocted dogree of acIve"" environmental im and 1Isb! them in two separate schedu~. Schedule-llists projeels that may not have slgnifi environmental impacte ' and therefOl"O require an lEE. Schedul&-II lists p/<)jecte at poIBnt! aignilil:ant environmental Impact. requl~ng preparation of an E\A. However. ~ may I>e n that this rogulation doee not have any other catagory for equipment procurement pIojecte.

U /iaUOnai Environmental Quality Slandorda (NEQS) :/000 Firat promulgated in 19sa. the NEQS WIIf8 last arnondad In 2000. These conatlMetho , guldelin .. with Which municipal and Ind~al otlgin liquid elftuont and gaseous emission, m oomply, Th ... $landani, pl!lBent tho maJiimum 'ollowable conoontralion for liquid om nt before its discharge into .... inland water and sewage (total 32 parameters with which to comply) and gaseous emission. in the ambient air from industrial sources (total1S param '" With which to comply).

4J) EVALUAnON OF PROJECT ISSUES WITH RESPECT TO'ENVIRONMENTAL IIiIPA POTENTIAL

All of the activities under Section 1.3 were identified by an In~1 Environmental Exami . on that WAPDA c:ompieteQ in 2Q02. The purpose WB.& to evaluate any environm~ im . during the construction and operation phaee of tho project and to _re a mitigation Pl to minimize adverse affects.

The contant at tho initial 2002 lEE was de8igned to meet the _ani guldelin .. of tho P . ' n Environmental ProtectIon />qehcy (PEPA), tho Worid Bank and tho Asian Dewlopment k, The repor! was appttiv8d by the PEPA and no further EnvIronmental Impact Assessment (~ was required ""tho GOP environmental guidelinos do not require d$lailod EIA for projects I than 50 WWV _lIod capacity,

Major environmonta.l objections we ... related to oo~ctlon of the Sholung tunno!. Based on objectiona. ospociaiiy from the WNF. that component of the project WItS .nminatild: SUb6oquont1y. the 2002 lEE report condudod that the pIoject will have minimum onvlron I impact:

There WDuld be no loA of any rare and endangered species. snow Ieopanl, brown bear and other wild life ore found in the are. south of Satpata on he IleoslIi Plateau and wiD not be impactod by tho project, Minimal change in water quality ouch .. i"""""",d turbidity 10 OJ!POCIod du ng construc:tion periods.

Presen1ly the,,! are no resettlement iss""" Only eight lamifle. and two hotels displaced and compensation was paid ac:corQing/y, No llIdudlon In fish production or population is 0lIII0CI<Id,

T11e only minor sociologicallmpocl was tho loss 01 some hootaroo of privately """ed I.and , Ioh has been already acquired by WAPOA with compensation paid a"""rding~, ,So lar WAPDA',"," acquired 58.98 1Ia8I at the land and 39.75 aaes are In process of acqUISition. AbOut 5 ~ will be utilized at !!to dam site and lhe remainillg 34 aeras for ,the inigation system, WAPDA In a_on with lhe Offioa of the Deputy Commiuionar Skanlu 10 acquire this land, There · no resettlement 1 ... _ with pu_oI thie govemment owned Then. has been no obje<;ll the 1ocaI .... ldent. on this impending aCquisition of land,

4.0 Environmental Aaeument Guideline Reference Documentnlon

An Environmental Mannering and Mitigotion Plan WIllI aloo _peel as part of lhe lEE, purpose wa. to ~ the envirOnmental _ In ardor to minimize Impa<!S 8!1d m secondary benefits. Following m,ms lilt the ~ble envirorvnental im~~ and the mitig measures that were recommended"as part of the mitigation plan.

A Water """ted MII/ga/Joil

The water qualny of the Satpal1l nullall. uoed for providing water to Inhabitanta of Skardu.1MI\ be aIIecIed during oonatructlon of the prcfeOldue to Increase of sediments. Ilf1Ilnega chaiu!"I" thould be built BI"OUn.d or at the downstream ende of all conatn,djon areas and these channel .. should lead lhe water to tl>etreatrnent and settlement pond •.

For mitigation. septic bonks should be provided to treat the wesle water from site installa on campe and """itary appliances', Sludge collected from lhe sepijc tanka af1d ooIid _ oil Id be d"posad of properly thhlugh landfill methods, Diesel. 011 and lubricants ahould be pro stored In accorclance wtth ~ petrolitu.m regulations.

B. Land ,./Bted Mitigation

The land beI;Yeen the full supply levela!1d existing lewl wUl """'" in the """"""ir area and 100 8 familie. located near existing weir will be disPlaced, All famlli .. will be compeno 'according to the Land Acqul.~lon Aa, Aloo ITee8 located on the right bank and In lhe Island be submerged, As ,a mitigation measure WAPDA win plant natIVe tree species In the are right bank, front side and along the Satpara road, R&-pIanlll!ion will be carried 0

consultation with the Foreot DepMmenl

C. DIsposal of Evacuated Material

The excavated material produced during _on period. will be used as beck fill m rial a!1d as _ate ' for different projeCt structJJr.. and access reeds. Ther8lore dlsposa of ~ material is not an Issue.

D. Wlldlifs

6

Manpower working at oonstruction .~e should be aware to protect Wildlife. Noise prod by bI""tlng and other oonotruct!on ac:lMty should be (cept to acceptable level.

E. AIr Pollution

The Satpara project will oontributl! _. improvement of air quality. The provisiOn d electricity will reduce the trend of bumlng wood and kerooOne oil whlcll is widely used In Sk u as ilsouroe of fuel. illJring oonstruction of the project, the Increase in the lU""""dad dust nd exhauat !!I11llSions can be ellectMtly mitigated by adopting the following preventive measu (1) sprinlding d water on the sefVice roede and access tracks; (2) oon1rolUng the whicle$ · ~m~; (3) ptanting rapid growing trees In lho. project ..... ; (4) oontrol of exhauat gases af veh used of construction.

F. Noise

Tho pla.nt should be d_igned in such "" way that naile level doo • . not ._ the feU 9 limits:

At a distance of Sm from the nolse,source 90dB I>J. boundry of power house 55dB Night timolevel 35dB

All vehicle$ should be equipped _ efI'ecIIV. muffle", and high noiso machinery ohould n be used In night shifts.

G. Employment

The construction of the power plant will oreate job opportunitioo for the people living i. surrounding .... a. Other fadrrties like commodity marko!, modical ctinic etc., will also be ootobllshod that will reBUll ln opportunlti .. for IocaJ people to ealalililh "';011 business.

H. Fin> Protecl.iarl

F"" protedion equipment at the powerhouse shall oon .. st of the following;

Underground fire services main with the vaIV8 pits Hydrahts and fire horses In cabinets

I. Safely M ... ~s

Fire extinguish .... (C02, dry go., fcem) SuffICient sets of breathing apparatus should be available at the silo Fore walls shallafso beoonotructed around main transfcnn

WHO environmsntal health and I18raty rules should be followed Generally tho silo should be adecuately equipped to. handle accidents Medk:al aid, ftra extinguishing equipment, artificial oxygen supply/m and helmets should all be present on aite in ~uato numbers

- Explosion handfing and conveyance .houkt be done acamfing to laid dawn by th~ Government The Govammont of Pakistan rulea for heOIth and ""ely of wol1<ers u the E><plosiv .. Act 1984 .nd the f~ories Act 1934 should be foil

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- Permanent sign should be erected In the area under eon'ltruction - WAPDA should erect safaty ~ncIng around any unsafe are .. to keelP pu~ I

people. and animals

Nate: A list '!I _ancos for ~Ion of an Environmental Mitigation & Monitoring Ian (EMMP).

t Environmental

2. :"'''!ir Bank

6.

, ,

for

PreYentionand I

, Health and Sat...ty Guideline I . '

~.I

and

6;0 RECOMMENDED THRESHOLD DECISIONS AND IImGA1l0N ACllONS (INCLUDING MONITORING AND EVALUA1l0N)

, """I

·5.1 The ongoing co_on activity .. 11 realm In a NogotiVs DoIem7InIition with CoMit/ons ,.. completion of the $atPara multipurpose project. The conditions will include the u.1e of environmentally _nd materials and safe construction pooctjces, monltoling and evaluation, updat& and JlI1!P8Tatk>n of specific EnVironmental Mitigation and Monnoiing P ~Ii for the Ac\ivi1y. The Bureau Environmental Officed Asia will have to approve till. lEE. Furthermore~ obflgations will not occur until the EMMP Is approved. by the, Bureau Environmental OffIcer! Asia.

5.2 USAlDIPakIslan Is hiring an environmental consuiting firm to conduct the following tasks thai /lave Non approved by the MEOIDMEO. .

a. Review the emiironmental reports for both Satpano Dam, and prepare a sun'm~lry~,.. aad! project of the envl",nmentallsaueo, pooitive or negaJive irilpacta and proposed

8

tnitigationo & monftoring (In tabular foon) for the scope of actlvlileo under both projeet8 their "",a of inftuonco, Highlight any changes In the el1lllronmental conditions & issu .. since the existing (or%llnal) reports and start-<!p of constnJdlon.

b. DellClibe the ....... a. they curruntly exist with the ongoing col181ruction or the <la, , hyd",_ plen! and irrigation system in Satpara. This task will roquire onofte assessment in the field an~ should cover different ·~ impacting the envlronment sue as physical, bloIoglcal, dlmate, water resources, geology and sccio-econornlc. Conotructlon and ope!lItion practicoe, o"1i<>ing supelVision as well as Implementallon f

eI1IIi",nmental mitig~n end tnonftoring mea.ures (and Contraclof. capabilities) a. proposed in the orlglnat IEI'JEA ehall be ",viewed end document8d. Determino the slgnllicance of oxI.ting and t>otontIat ._ oI1III",nmontai and social impacla due to conatruc:tlon and operation of the dams and associated i_Ill, and. update or dewlop an El1IIIronmental Mon~oring and Mitigation Plan (EMMP) for Salpara dam project.

C, Review the comments of USAID Environmental Officer. '8nd address all concel'l"Hi

d. Foi' the """.I"lng scope of work for Satpara dams to be Implemented under USG funding, conduct a quick emiironmental analysis end develop a slnglelil11egrllted comprohenaive and detailed EMMP with budget and .... pcn.il>l~i .. thatBhOllid comp~ with GOP end USAlOJUSG _"'nmental ragulationa and beat international practice.

5.3 The folkrMng table p""""'ts the 8umma<y ofadivitieB, envin>nmental Impacts It1d rec:x:munanded threshold decision$.

5.3 Summ.,y of recommanded tII .... hold docblo""

Completion of c:IInl _

Construction of power house #3 and #4

Environmental Impact Minor. 91% construction of·the completed

Minor to Moderate. Negligil>e adverse impact

I or the natural and I pnY8ical envIronment.

RecOmmended Detennlnatlon Negatl!to DetenmlnaUon with COndlllons per 22 CFR 216.3 (a) (2) ~Ii), the Conditions (with reference to the Paki$tani laws and guidance In1-6 under Section 4) being uae or I!InviJonment~lIy sound materials, monitoring "and evaluation (M&E), and good il11emetional indU8ll'y pn.ctices acosptable to USAID. The EMMP d_lopod·wili be

I lQ)I)I'Ovad by the BEOIAaIa. Negative Detenninatlon .wtth COnditio". per 22 CFR 216.3 (aJ (2) (IIQ, tha Conditions (with reference to the Pakistani laws

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power house#1and.:2 will be used for driving turbines in power house (j3 and 14 I'e8pectiwly .

Section 4) being use 01 8I1vlrcnmentalJy sound motional.,! monitoring and .... luatIon (M&E), ·.nd good international Industry practices sc;ceptable to uSAio. The EMMP d ... ,I"!,,od.

~i~mg~· :atio~· ~n~sys~' ~teI~m~OiiOiiOi11' ~'~~syslem~:;~of~two:1~(~a)~(2) (liij, the Condltlolll (with canals i.75% referenoa to the -"Iaws complete. and guidance lnHI under .

5.4 Llmltotiona

Thia 88S~nce doesn't Q.lWr activities involving:

Section 4) bolng use of environmentally sound m"i<Iri,'la,1 monitoring and evaluation (M&E), and good International Industly practiceS ac;ceptable to USAIO. The EMMP be

1. Prccun!l11ent. use or recommendation fer use of peaticidos and of geneticallY moor' . OIJlanism. (GMOsJ.

2. DCA or GOA programs.

3. Procurement or use of Asbestos Containing Matarials or tither'toxicIhazan:fous m-r'ls prohibited by US EPA.

1.1 R .... loM

Inacoords""" with 22 CFR 218.3(9) (9), W now infarmatlon beoomos avaiiable·Y.t1idl indo .eo that scti.vttIos to be funded by the Program might . be 'majo~ and the Program'. ·.ignifl<:an~ • the Negative Dotell!1ination Will be reviewed and revised by the Originator . the proJeclilnd aubnlitted through tho MEO to tho BEOJAsia for approval and, W apprcpliala an environmental ........ mont will be prepared.

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APPROVAl. Of ENYlRONIIIENTAI. ACTION RECOMMENDED:

CLEARANCES: ' .. . .

Director, 0t!Ice of Energy

Rogional EnvlRlnmenla1 AdvieorIAsla

SanlO( Deputy Mission Director

APPROVAl:

Mission Direcior

Bureau ErMronmental OIIIcerlAsla.

Concurred by omall (attached)

Andrei Barwlnik

•

'Robert J. Wol&on.

(J John Wilson

I !1afa

AIMlull\ 20, 2010

Date

, Date!

Date

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