Quarterly Social Monitoring Report

This report has been submitted to ADB by the Borrower and is made publicly available in accordance with ADB’s public communications policy (2005). It does not necessarily reflect the views of ADB.

Project Number: LN2612/EI7303 January to March 2014

PHI: Visayas Base-load Power Development Project

Prepared by

KEPCO SPC Power Corporation

Cebu City, Philippines

2 x 100 MW CEBU POWER PLANT

2014.04

Site Office

Quarterly Social Monitoring Report

(January–March 2014)

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Social Monitoring Report January – March 2014

Table of Contents

I. Introduction/Background 3 II. Land Acquisition and Involuntary Resettlement – Naga Land 3

III. Land Acquisition and Involuntary Resettlement – 138 kV T/L Project 5 IV. Social Development Plan and Corporate Social Responsibilities Program 6 V. Attachments:

Attachment 1 2014 Approved Budget for SDP and CSR Program

Attachment 2 Table of Status of ROW Cases in T/L

Project (as of April 21, 2014)

Attachment 2 Table and Photos of Implemented SDP and CSR Projects (January–March 2014)

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Social Monitoring Report January – March 2014

I. INTRODUCTION/BACKGROUND A. Brief Project Description KEPCO SPC Power Corporation (KSPC) undertook the construction of a 2 x 100 megawatts (MW) CFBC power plant in Barangay Colon, City of Naga, Cebu. The project is standing in a 10-hectare land that is leased for 25 years from National Power Corporation (NPC). The project involves 2 resettlement issues: a) in the leased property called Naga Land; and b) along the Transmission Line (T/L) Project. Prior to construction period, resettlement of some informal settlers families just outside the lease land have been carried out as a joint effort by Barangay Colon, the then Municipal Government of Naga, NPC and KSPC. Out of 22 families, 17 families have accepted financial assistance provided and voluntarily moved their houses in the same vicinity outside the plant’s perimeter fence. Five families claim to have legal titles and during the construction phase remain to be partially encroaching in the leased land. NPC filed a civil case for recovery of possession of the areas occupied by these 5 families. Meanwhile, a social analysis conducted by Transco, now National Grid Corporation of the Philippines (NGCP), concluded that the proposed 138 KV T/L Project requires land acquisition and resettlement. The 0.90–kilometer transmission line from KSPC’s Cebu Power Plant Project to the New Naga Substation will affect 11 landowners, 1 tenant, 13 structures owners and 10 relocatee-households.

II. LAND ACQUISITION AND INVOLUNTARY RESETTLEMENT – NAGA LAND

A. Progress on Case Filed in Court vs. 5 Illegal Dwellers within Naga Land

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Social Monitoring Report January – March 2014

The Court already resolved the case filed by NPC vs. the five (5) Illegal Dwellers within Naga Land. Two of the defendants did not file answers to the complaint while the three others already entered into a Compromise Agreement with National Power Corporation (NPC). The Court approved the Compromise Agreement and resolved the issue on the two (2) other defendants, who were earlier declared in default for not filing an answer to the complaint.

B. Progress on living condition of 17 Resettlement Families The families living in the Resettlement Area are already insulated from direct contact with the land reclaimed using coal ash after the completion of the concreting project. They are prioritized in the different community outreach projects under the Social Development Plan and Corporate Social Responsibilities (SDP and CSR) Program that KSPC implements every year. KSPC is sending a doctor to six (6) barangays nearest to the power plant, including the host Barangay Colon, for a weekly free health check-up as well as donating basic medicines to augment the supplies provided by the local government. Last March 7, forty (40) women from Barangay Colon completed the Hair Styling and Beauty Care Training conducted by KSPC through the Alternative Learning System (ALS) Program of the Department of Education (DepEd), the Technical Education and Skills Development Authority (TESDA) and local government units (LGUs). They are the fourth batch of completers under KSPC’s Skills Development Training Program aimed to equip the residents

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Social Monitoring Report January – March 2014

of the community with skills that can provide them livelihood and employment opportunities. KSPC has also been donating medical equipment and upgrading the facilities of the barangay health centers and the public schools to help improve the services they provide. This school year, the budget for Scholarship Program was doubled in order to widen the coverage of the free education of its existing four (4) beneficiaries and be able to help additional poor but deserving public high school graduates in its host communities. A new program to address the problem of malnutrition among school children will also be implemented, as well as assistance for the Persons with Disability (PWDs) residents of the barangay. Meanwhile, as committed to the LGU partners, KSPC will continue the quarterly consultation meetings with the three nearest barangays of Colon, North Poblacion and Tangke to update the communities of the different activities of the power plant, as well as get feedback and recommendations from the nearby residents. Attached is KSPC’s approved 2014 budget for its SDP and CSR Program with significant increase compared to last year’s budget. Additional budget for donation and financial assistance is being provided for the other needs solicited by the host communities and the stakeholders. Please see Attachment 1

III. LAND ACQUISITION AND INVOLUNTARY RESETTLEMENT – 138 kV T/L PROJECT A. Progress on the remaining ROW Issues Please see NGCP report on the latest Status of ROW Cases as of April 21, 2014 in Attachment 2.

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Social Monitoring Report January – March 2014

IV. SOCIAL DEVELOPMENT PLAN

A. Progress on Implementation of Livelihood and

Community Development Programs for People Relocated from Naga Land and Project T/L

In fulfilling its commitment to uplift the lives of the residents of its host communities, KSPC continuously gives priority to the implementation of various programs and projects that are focused on health, education, environment and livelihood. Please see Attachment 2 (Implemented Community Relations Projects/Programs from January– March 2014).

V. PROBLEMS AND FUTURE WORK PLAN

So far, no major problem has been encountered. All SDP and CSR activities are being carried out in coordination with the host communities and stakeholders from the planning stage up to actual implementation.

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Social Monitoring Report January – March 2014

ATTACHMENT 1

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Social Monitoring Report January – March 2014

ATTACHMENT 2 NEW NAGA SUBSTATION & ASSOCIATED TRANSMISSION LINE PROJECT

Status of Expropriation Cases as of 21 April 2014

Case Title

Case

No./Court Date Filed

Presiding

Judge

Defendants’ Counsel

Handling

Lawyer

WOP

Remarks

D. KSPC Associate Lines –

4 cases

1 NGCP vs. Hrs. of Eugenio

dela Corte, namely: Eliseo

A. dela Corte, et.al.

CEB-36004

RTC 5

Cebu City

6-Oct-09 Judge

Castillo

(Pairing

Judge)

Atty. Michael

Yu

√ Documentation for the settlement of the case is being

processed. The copy of the Deed of Absolute Sale was

already sent to the defendants for their review and

signature.

2 NGCP vs. Hrs. of Corazon

Ceniza

CEB-36361

RTC 12

Cebu City

9-Feb-2010 Estella

Singco

Atty.

Capanas

Defendants have been paid of the compensation.

Follow-up is being with Atty. Labrado (counsel for

defendants) for the tax clearance certificate re payment

of estate taxes to complete the transfer of ownership.

15 NGCP vs. Amador

Anastacio

CEB-36326

RTC 14

Cebu City

29-Jan-

2010

Raphael

Yrastorza

ditto √ Prese tatio of defe da ts’ evide ce o the just compensation is ongoing.

16 NGCP vs. AmparoAlforque

and Hrs. of Sergio

Alforque

CEB-36003

RTC 58

Cebu City

6-Oct-09 LynaAdvient

o

Atty. Rio

Bilocura

ditto √ We are still waiting for notice from the Court for the

next hearing schedule. (Note: Hearing on civil cases are

deferred after the earthquake last 15 November 2013.

The Palace of Justice is unsafe for occupancy and the

courts are set to transfer to another location.)

Defe da ts’ proposal for settle ent is being evaluated.

ATTACHMENT 3

Implemented Community Relations Projects and Programs (January–March 2014)

Date Beneficiary/ies Project Name Amount

1 Jan-March 2014 Barangays Colon, Tuyan,

Inayagan, North Poblacion, Tangke and Naalad

Doctor’s Weekly Free Health

Check-Up 144,000.00

2 08-Jan 2014 Uling National High School and Langtad Elementary

School

Financial Support for the City

of Naga’s Contingent to the Sinulog 2014

50,000.00

3 14 Jan. 2014 Barangay Colon Resident

Condolence Money to

Indigent Resident

5,000.00

4 20 Jan. 2014 Barangays Colon and North

Poblacion

Financial Assistance for the

Barangays’ Participation to the 2014 Sinulog sa Naga

10,000.00

5 21 Jan. 2014 Department of Education –

City of Naga

Financial Assistance for the

City of Naga’s Athletes to the Central Visayas Regional

Athletics Meet

23,605.00

6 05 Feb. 2014 Brgy. North Poblacion

Financial Assistance for the

Barangay Youth’s Basketball Tournament

20,000.00

7 11 Feb. – 7 March

2014

Women Sector of Barangay

Colon

Hair Dressing and Beauty

Care Skills Training Program 102,000.00

8 05 March 2014 Barangays Colon, North

Poblacion and Tangke Day Care Centers

Support for the Graduation

Ceremonies 15,000.00

9 06 March 2014

Barangay Health Workers

and Nutrition Scholars

Support for Seminar and

Induction of Officers

14,140.00

10 12 March 2014

NPC-Colon Elementary

School

Incentives to Honor and

Graduating Students 45,000.00

11 19 March 2014 Barangay Tangke

Donation of Concreting

Materials for Barangay Road

Paving Project

14,100.00

12 24 March 2014 Bureau of Fire Protection

Donation of Safety Shoes to

Firemen 54,900.00

13 25 March 2014

Barangay North Poblacion

Chapel & Barangay Colon

Senior Citizens

Donation of Plastic Chairs 22,745.50

PHOTOS OF COMMUNITY RELATIONS ACTIVITIES

GRADUATION CEREMONY OF beauty care skills

training program

SUPPORT FOR NPC-COLON ELEMENTARY SCHOOL’S GRADUATION CEREMONY

DONATION OF CHAIRS TO BARANGAY COLON SENIOR

CITIZENS AND BARANGAY NORTH POBLACION CHAPEL