E900ENVIRONMENTAL ASSESSMENT POLICY FRAMEWORK

I. Project Background

As part of the Philippine Energy Plan directed at sustainable development and growth ofsocial equity, the Department of Energy has set barangay electrification as a priorityprogram. The present target is to electrify 100 percent of the 41,995 barangays in thecountry by 2006. As of April 2002, 16% (or ca. 6700) of the barangays remainunelectrified. The hundred percent electrification target will require huge capitalinvestments to rehabilitate/upgrade distribution lines, extend wires to remote areas, andinstall isolated systems, all against the backdrop of budgetary constraints currently facingthe government. The major challenge is to get the private sector involved in the provisionof electricity services to areas remote from the grid. Isolated systems are costly to installand customers belong to the lowest income groups. Decentralized electrification is howeverexpected to be the least-cost option for about 40 percent of the non-electrified areas.

The rural off-grid electrification includes the provision of pre-grid electricity services usingdispersed energy equipment, principally mini-grid service from diesel and/or renewableenergy sources, and free-standing energy systems like solar PV. Mini-grid systems willconsist of power facilities and also include transmission and distribution facilities.

This framework consists of two parts. The first part (Sections 1 to 3) discusses the projectbackground (Section 1), the safeguard policies of the Philippine Government and the WB(Section 2) and the guidelines for environmental impact assessment and preparation of anenvironmental management plan (EMP) for the market packages (Section 3). Section 3 willprovide the framework/guide in the conduct of an environmental assessment during projectpreparation and in the implementation of environmental protection during construction,operation and abandonment of the project components.

Annexes 1,2, and 3 presents preliminary initial environmental examinations (IEEs) for Iloilo,Palawan, and Davao del Sur. These reports may serve as templates for the IEE but shouldbe modified to suit the specific site conditions and project impacts once the project design isfinalized and the sites of the project components are identified. It must be noted howeverthat an IEE Report will have to be prepared for each project.

II. Project Scope

The project which will be demand-driven would include the following:

1. Decentralized electrification - off-main grid* Small scale generation and minigrids - small diesel plants, small renewable

generation plants using hydro-power and biomass* Stand-alone renewable energy systems -photo-voltaic solar home systems

2. Electric cooperatives subcomponents* Rehabilitation and upgrading of existing systems* Expansion of power distribution systems

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The new facilities may consist of any or a combination of the following:

1. Individual village power supply networks (off grid) consisting of 0.4/0.24 kVdistribution lines and power plants less that 100 kW by private sector operators

2. Multi village off grid networks consisting of 12.8 and 0.4/0.24 kV distribution linesand power plants of the order of 100 to 600 kW by private sector operators

3. Power transmission lines (69 and 12.8 kV) and substations by Electric Cooperatives4. Power distribution lines (12.8 and 0.24 kV) by Electric Cooperatives5. Photovoltaic solar home systems6. Other renewable energy generation plants

Specifically, the components of the small scale generation diesel power plant will consist ofthe following:

a) Diesel power plant (generator set and its auxiliary facilities including fuel receiving,handling and storage facilities and waste handling and treatment facilities)

b) Transmission facilities (backbone and distribution lines)c) Road networks (for access and maintenance), if applicable

The projected total capacity requirement per municipality in the next five years using dieselgenerators are given in Table 1-1.

Table 1-1 Project Diesel Power Plant Capacities

Diesel PowerProvince Municipality Plant Cap

(Initial) kWIloilo Janiuay 155

Calinog 170Lambunao 245

Palawan Roxas 625El Nido 250San Vicente 180Taytay 575

Davao del Sur Don Marcelino 570 (includesMalita Malita)Jose Abad Santos 260

The least cost options for each municipality consist of one of the following options: a)barangays to form one or more mini-grid systems where both backbone and distributionlines will be installed and b) only distribution lines will be installed. The transmissionfacilities specifications for each municipality in the three (3) market packages aresummarized in Table 1-2.

Table 1-2: T/L Facility S ecificationsTotal Length

Province Municipality Voltage Rating Type (Phases) backbone.. . (distribution)a, km

Iloilo Janiuay 13.2 kV & 240 V 3, 2 and single 18.6 (6.95)Calinog 13.2 kV & 240 V 3, 2 and single 27.1 (7.5)Larnbunao 13.2 kV & 240 V 3, 2 and single 31.8 (12.1)

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Palawan Roxas 240 V 2 and single 17El Nido 240 V 2 and single 16.56San Vicente 240 V 2 and single 5.49Taytay 240 V 2 and single 17.41

Davao del Don Marcelino 240 V 2 and single 10.92Sur Malita 240 V 2 and single 19.16

Jose Abad Santos 240 V 2 and single 28.59Notes: 1. Width for ROW: backbone, 6 meters and distribution, 4 meters and line support are wooden poles

2. T/L length and route were based on initial field survey and may change after the final design

III. Philippine Environmental Regulatory Framework

All investment projects to be funded by the project must comply with the nationalenvironmental regulations of the Philippine Government and the environmental safeguardpolicies of the World Bank. It is the responsibility of the borrower to carry outenvironmental assessments of projects required by the government and the World Bank andthat proponents obtain the necessary environmental clearances for each project prior toconstruction. Thus, environmentally sound practices will have to be incorporated in theproject design, and potential adverse impacts will have to be mitigated to acceptable levels.

There are a number of environmental laws comprising this regulatory frameworkThis framework has considered the following government regulations and guidelines:

* Presidential Decree No. 1586: Environmental Impact Statement (EIS) System* DENR Administrative Order No. 96-37: Revising DENR Admin. Order no. 21, series of

1992, to further strengthen the implementation of the Environmental ImpactStatement (EIS) system (1996; Annex 1; Procedural Manual)

. Republic Act 8749: Philippine Clean Air Act and its Implementing Rules andRegulations

* Presidential Decree No. 984: Pollution Control Law* Republic Act No. 7586: National Integrated Protected Areas System (NIPAS) Act of

1992* Presidential Decree No. 705: Revising Presidential Decree No. 389, otherwise know

as the Forestry Reform Code of the Philippines Forestry Code

a. The Philippine Environmental Impact Statement (EIS) System

The Philippine Environmental Impact Statement (EIS) system was established in 1979(Presidential Decree 1586). The law requires the preparation of an environmental impactstatement by all agencies and instrumentalities of the national government, includinggovernment owned or controlled corporations, as well as private corporations, firms andentities for every proposed project and undertaking which significantly affect the quality ofthe environment. It requires the environmental screening and categorization of projectsbased on their type, location, and scale of the proposed technology, sensitivity of theproject site and the nature and magnitude of the potential impacts.

DENR Administrative Order No. 96-37 (DAO 96-37), "StrengtheninQ the Implementation ofthe EIS System" defines the:

* scope of the EIS System,* procedural flow of the EIS system,

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public participation and social acceptability,environmental and monitoring guarantee funds,administrative appeals,roles and responsibilities of the project proponent, the EIS preparers and DENR,schedule of fees, and

* fines, penalties and sanctions.

In accordance with DENR Administrative Order (DAO) 96-37, projects are categorized asfollows:

* Environmentally Critical Projects (ECP), projects that will most likely have high riskor negative environmental impact. These require a full-blown Environmental ImpactAssessment (EIA) Study. Or,

* Projects in an Environmentally Critical Area (ECA), an area which is ecologically,socially, or geologically sensitive. These require as a minimum, an InitialEnvironmental Examination (IEE).

* Projects not classified under the above categories may need to submit a projectdescription or an EMP depending on the nature of their undertakings.

All projects or undertakings falling under the first two categories are required to secure anEnvironmental Compliance Certificate (ECC) prior to construction and operation. Those notcovered may secure a Certificate of Non-Coverage (CNC) also from the DENR.

b. Philippine Clean Air Act (RA 8749)

The Philippine Clean Air Act and its Implementing Rules and Regulation (DAO 2000-81)provide the air pollution control policy of the Philippines. The following air qualityguidelines/standards that may apply to the proposed market packages are presented inDAO 2000-81:

* National Ambient Air Quality Guideline Values (Table 2-1)* National Ambient Air Quality Standards for Source Specific Air Pollutants from

Industrial Sources/Operation (Table 2-2)National Emission Standards for Source Specific Pollutants (Table 2-3)

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A. Table 2-1: National Ambient Air Quality Guideline Values

Short Term 1. Long TermIII.Pollutants ug/Ncm ppm Averaging u Averaging

Suspended ParticulateMatter -

TSP 230 24 hours 90 1 yearPM-10 150 24 hours 60 1 year

Sulfur Dioxide 180 0.07 24 hours 80 0.03 1 yearNitrogen Dioxide 150 0.08 24 hours

Table 2-2: National Ambient Air Quality Standards for Source Specific Air Pollutants fromIndustrial Sources/Operations

Pollutants Concentration Averagingug/Ncm l ppm Time (min)

Nitrogen Dioxide 375 0.20 30260 0.14 60

Sulfur Dioxide 470 0.18 30340 0.13 60

Suspended Particulate MatterTSP 300 60PM-10 200 60

Table 2-3: National Emission Standards for Source Specific Air Pollutants (NESSAP)

Pollutant Standard Applicable to Source Maximum Permissible___________________ ~~~~Limits (mg Ncm )

Nox Fuel burning steam generators Calculated as N02Existing Source 1,500 as N02New Source

Oil-Fired 500 as N02Diesel-powered electricity generators 2,000 as N02

Particulates Fuel Burning EquipmentUrban and Industrial Area 150Other Area 200

Sulfur Oxides Existing SourceFuel Burning Equipment 1,500 as S02

New SourcesFuel Burning Equipment 700 as S02

c. Pollution Control Law (PD 984)

The Pollution Control Law declares a national policy to prevent, abate and control pollutionof water, air and land for the more effective utilization of the resources of this country. Itrevises Republic Act No. 3931. It modifies the organizational structure of the NationalPollution Control Commission (now, the DENR) to make it more effective and efficient in thedischarge of its functions and responsive to the demands of the times occasioned by theaccelerative phase of the country's industrialization program.

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DENR Administrative Orders 34 and 35, Series of 1990

For the purpose of monitoring and controlling water quality affected by proposed projects,water quality classification, applicable water quality criteria (DAO 90-34) and effluentstandards (DAO 90-35), water quality monitoring, pollution load assessment/inventory,pollution control technology/strategy/alternatives and implementation and enforcementshould be established.

d. Forestry Reform Code of the Philippines (PD 705)

The classification, management and utilization of forest lands and resources are definedunder the Forestry Reform Code of the Philippines (PD 705). In the Code, under Section 49.Roads and Other Infrastructure, the following are required in the construction of roads andother infrastructures and the delineation of rights-of-way in forestlands:

"Roads and other infrastructures in forest lands should be constructed with the leastimpairment to the resources".

"Government agencies undertaking the construction of roads, bridges, communications, andother infrastructures and installations inside forest lands, shall coordinate with the Bureau,especially if it will involve the utilization or destruction of timber and/or other forestresources, or watershed disturbance therein, in order to adopt measures to avoid or reducedamage or injury to the forest resource values".

"In order to coincide and conform to government plans, programs, standards, andspecifications, holders of license agreements, licenses, leases and permits shall notundertake road or infrastructure construction or installation in forest lands without the priorapproval of the Director, or in alienable and disposable lands, civil reservations and othergovernment lands, without the approval of the government agencies having administrativejurisdiction over the same."

Under Section 57. Other Special Uses of Forest Lands, the following applies:

"Forest lands may be leased for a period not exceeding twenty-five (25) years, renewableupon the expiry thereof for a similar period, or held under permit, for the establishment of..., rights-of-way, ... and other beneficial purposes which do not in any way impair the forestresources therein".

e. Water Code of the Philippines (PD 1067)

The Water Code of the Philippines institutes the laws governing the ownership,appropriation, utilization, exploitation, development, conservation and protection of waterresources. The underlying principles of this Code are:

* All waters belong to the State;* All waters that belong to the State cannot be the subject to acquisitive prescription;* The state may allow the use or development of waters by administrative concession;. The utilization, exploitation, development, conservation and protection of water

resources shall be subject to the control and regulation of the government throughthe National Water Resources Council (NWRC); and

* Preference in the use and development of waters shall consider current usages andbe responsive to the changing needs of the country.

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f. National Integrated Protected Areas System (NIPAS) Act of 1992

An Act providing for the establishment and management of National Integrated ProtectedAreas System, defining its scope and coverage, and for other purposes. DAO 92-25 containsits implementing Rules and Regulations.

Consistent with PD 1586, the following Environmentally Critical Areas (ECAs) are alsoconsidered as protected areas:

. All areas declared by law as national parks, watershed reserves, wildlifepreserves, and sanctuariesAreas set aside as aesthetic potential tourist spotsAreas which constitute the habitat for any endangered or threatened species ofindigenous Philippine wildlife (flora and fauna)Areas of unique historic archeological or scientific interest

. Areas which are traditionally occupied by cultural communities or tribes(indigenous cultural communities)Areas frequently visited and/or hard-hit by natural calamities (geologic hazards,floods, typhoons, volcanic activity, etc.)Areas with critical slope

* Areas classified as prime agricultural lands* Recharged areas of aquifers. Water bodies characterized by one or any combination of the following

conditions: tapped for domestic purposes, within the controlled and/or protectedareas declared by appropriate authorities, and which support wildlife and fisheryactivities.Mangrove areas characterized by one or any combination of the followingconditions: with primary pristine and dense young growth, adjoining mouth ofmajor river systems, near or adjacent to traditional productive fry or fishinggrounds, which act as natural buffers against shore erosion, strong winds andstorm floods, and on which people are dependent for their livelihood.Coral reefs characterized by one or any combination of the following conditions:with fifty percent (50 %) and above coral line cover, spawning and nurserygrounds for fish, and which act as natural breakwater of coastlines.

g. Toxic and Hazardous Wastes Act (RA 6969)

The Toxic Substances and Hazardous and Nuclear Wastes Control Act of 1990 (RA 6969)ensures protection of the public and the environment from the risks or potential dangers inthe use or exposure to chemicals from long term damage brought about by carelesshandling or disposal of hazardous wastes. The regulations on use, movement and disposalof chemicals, hazardous and nuclear wastes in the Philippines are presented in DAO 92-29,the Implementing Rules and Regulations of RA 6969.

IV. World Bank Safeguard Policies on Environment

The following World Bank Safeguard policies on environment apply to this project:

a. Environmental Assessment - OP 4.01, BP 4.01, GP 4.01

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World Bank procedures for environmental screening and categorization of projects aredescribed in Operational Policy (OP)/ Bank Procedures (BP)/ Good Practices 4.01:Environmental Assessment (1999). The substantive requirements for World Bank CategoriesA and B overlap to a large extent with the Philippine EIS requirements. In general,renewable energy projects, rural electrification projects including transmission facilities andaccess roads are considered Category B Projects.

A proposed project is classified as Category A if it is likely to have significant adverseenvironmental impacts that are sensitive, diverse, or unprecedented. These impacts mayaffect an area broader than the sites or facilities subject to physical works. EA for aCategory A project examines the project's potential negative and positive environmentalimpacts, compares them with those of feasible alternatives (including the "without project"situation), and recommends any measures needed to prevent, minimize, mitigate, orcompensate for adverse impacts and improve environmental performance. For a CategoryA project, the borrower is responsible for preparing an Environmental Impact AssessmentStudy.

A proposed project is classified as Category B if its potential adverse environmental impactson human populations or environmentally important areas-including wetlands, forests,grasslands, and other natural habitats-are less adverse than those of Category A projects.These impacts are site-specific; few if any of them are irreversible; and in most casesmitigation measures can be designed more readily than for Category A projects. The scopeof EA for a Category B project may vary from project to project, but it is narrower than thatof Category A EA. Like a Category A EA, a Category B EA examines the project's potentialnegative and positive environmental impacts and recommends any measures needed toprevent, minimize, mitigate, or compensate for adverse impacts and improve environmentalperformance. A proposed project is classified as Category C if it is likely to have minimal orno adverse environmental impacts. Depending on its specific undertakings, a project maybe required to prepare an Environmental Management Plan.

Preparation of an Initial Environmental Examination (IEE) and an EnvironmentalManagement Plan (EMP) are minimum requirements for each Category B sub-project inevery town. The World Bank Task Team will review from time to time during supervision,the sub-projects' compliance to the requirements of the Environmental ComplianceCertiificate and the implementation of the EMPs.

A Category B project can become Category A if new information reveals that it may havediverse and significant environmental impacts. For sub-projects qualifying under Category Awhich necessitate an Environmental Impact Statement (EIS), a WB Environmental clearancewill be obtained through the process of project supervision. In practice for Category Aprojects, WB clearance of the individual EISs is given when 1) an the environmentalassessment report is prepared, 2) the ECC is obtained from DENR, 3) validation isconducted by the World Bank staff to ensure that the process described herein is followed.

b. Natural Habitats - OP 4.04, BP 4.04, GP 4.04

World Bank procedures for natural habitats are described in Operational Policy (OP)/ BankProcedures (BP)/ Good Practices 4.04: Natural Habitats (2001). As part of theenvironmental assessment process, the environmental screening indicates the types andestimated areas of affected natural habitats; the significance of the potential impacts; theproject's consistency with the national land use and environmental planning initiatives,conservation strategies and legislation; and the mitigation measures planned. The

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substantive requirements for World Bank Categories A and B involving natural habitatsoverlap to a large extent with the Philippine NIPAS Act of 1992.

The Bank promotes and supports natural habitat conservation and improved land use anddoes not support projects involving the significant conversion of natural habitats unlessthere are no feasible alternatives for the project and its siting and comprehensive analysisdemonstrates that overall benefits from the project substantially outweigh theenvironmental costs. If the environmental assessment indicates that the project wouldsignificantly convert or degrade natural habitats, the project shall include mitigationmeasures acceptable to the Bank. Such mitigation measures include minimizing habitat lossand establishing and maintaining an ecologically similar protected area.

In deciding whether to support a project with potential adverse impacts on a naturalhabitat, the Bank takes into account the borrower's ability to implement the appropriateconservation and mitigation measures.

(c) Electro Magnetic Field Exposures for the Public and Workers

Over the past three decades, there has been some public concern that long term exposuresto extremely low frequency (0 to 3 kHz) electric and magnetic fields can pose healthhazards and can potentially cause cancer, reproductive effects and nervous system effects.While some of these concerns have not been completely resolved, major scientific reviewshave concluded that there is insufficient evidence from which one can conclude that chronicexposure to low level electric and magnetic fields pose a health hazard. A number ofInternational Standards' bodies, including American Conference of Governmental IndustrialHygienists (ACGIH), the International Commission on Non-Ionizing Radiation Protection(ICNIRP), the UK National Radiological Protection Board (NRPB) have concluded that thelong term health effects of electric and magnetic fields have not sufficiently beenestablished to form the basis for standards.

There are, however, well established adverse effects from short term exposures to electricand magnetic fields at levels much above those found in most environments and standardshave been developed by a number of organizations to protect against these effects. IEEEInternational Committee on Electromagnetic Safety (ICES) have developed draft standardsfor limits on electric and magnetic fields that must not be exceeded. The basic restrictionsspecified in these draft standards are indicated below in Table 1:

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Table IV c-1: Basic Limitations Applying to Various Regions of the body in terms of inducedin situ electric field (EO)

Frequency General Public Controlled EnvironmentExposed Tissue Fe (Hz) Eo (V/m rms) Eo (V/m rms)Brain 20 5.89 x 10-3 1.77 x 10-2Heart 3350 0.943 0.943Hands, wrists, feet and ankles 3350 2.10 2.10Other tissue 3350 0.701 2.10Interpreation of Table as follows: Et = Eo for F<Fe; Et = Eo (F/Fe) for F>Fe

In addition to the above listed restrictions, exposure of the head and torso to magneticfields below 10 Hz shall be restricted to a peak value of 167 mT for the general public and500 mT in controlled environment.

If existing NPC and NEA standards are employed during design and siting of 69 kV and 13.2kV lines, the above indicated limits for electric and magnetic fields are expected to be easilymet. However, these limits may be included as performance specifications during siting anddesign of the sub-transmission and distribution lines.

V. The General EA Process

This chapter describes the process followed in the preparation of an environmentalassessment report and the environmental management plan as well as existing governmentprocedures and requirements governing the processing of applications in obtaining for thenecessary environmental clearances from the Department of Environment and NaturalResources (DENR).

a. The EA Study

The environmental assessment process begins during project preparation which includesproject selection, location, and design decisions, taking into consideration the specificnature and scope of each project. It starts with identifying significant environmental impactsand that the environmental management plan is adequate to address these impacts. Theenvironmental management plan includes the environmental mitigation measures,environmental monitoring procedures, institutional support, institutional arrangements andresponsibilities and budgetary support needed to implement the recommended mitigationmeasures.

The EA process required by both the Philippine Government and the WB for each sub-project are complimentary in scope and shall be accomplished by the DOE-PMO and theproponent, as the case may be, as follows:

1) Determine project components and respective proposed sites [DOE-PMO]

2) Apply the following screening criteria: [DOE- PMO]

1. Location of the project

* Siting criteria for energy projects* Environmentally critical areas

Socially/culturally critical areas

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2. Project categorization

Environmentally critical or Category A projects* Projects located in Environmentally critical areas or Category B

projects* Non- coverage projects

3. Level of environmental analysis or study

Environmentally critical or Category A projects - full EIA study & EMPProjects located in Environmentally critical areas or Category Bprojects - Initial Environmental Examination & EMP

. Non- coverage projects or Category C projects- Project description(EMP if required)

3) Conduct consultations with stakeholders of the project (concerned governmentagencies [GAs], non-government organizations [NGOs], people's organization[POs],and project affected persons [PAPs]) [Proponent]

4) Prepare and submit a project brief/description, citing project components and theirproposed sites to DENR Regional EMB. Request for confirmation of therecommended EA category for the project. The recommended EA process,IEE/Category B per DENR and WB Guidelines can be upgraded to a full blown EISafter review by the concerned DENR Regional Office. [Proponent]

5) Conduct visit to the proposed project site, identify impact areas and establishexisting environmental conditions of impact areas. [Proponent]

6) Identify potential environmental impacts and classify them by significance of impactsusing the IEE Checklist for energy projects provided by DENR. The Checklist willhelp the EIA report preparer to readily screen the list, delineate the significantenvironmental impacts and thus eliminate the others from further consideration. TheChecklist maybe expanded to account for other significant impacts andmitigating/enhancement measures specific to the sub-project. [Proponent]

7) Prepare IEE (Category B)

7a) Prepare EIS (Category A)

8) Acquire other requirements in the preparation of the EA/IEE for submission to theDENR Regional Offices to include, Right of Ways, Certificate of Titles, resolutionsfrom barangay, municipal and provincial governments, clearance from othergovernment agencies and indigenous people when applicable and accountabilitystatements of the preparer and the proponent. In Palawan, an environmentalclearance from Palawan Council for Sustainable Development (PCSD) for each sub-project is also required.

9) Submit IEE Report to DENR Regional Office or EIS to EMB Central Office for issuanceof ECC.

b. Public Consultation and Participation

Nothing can be more emphasized than the importance of public participation and atransparent EIS process in gaining understanding and achieving social acceptability for aproject or undertaking. The goal of public participation is to enable citizens to takeresponsibility for environmental protection and management through active involvement inplanning, monitoring and decision making. An excellent reference material is the WBpublication, Environmental Assessment Sourcebook Update No. 26, May 1999 entitled,"Public Consultation in the Environmental Assessment Process: A Strategic Approach".

Within the IEE preparation, participation of the local authorities and the local communitiesare secured through regular consultations during the entire EA process. They will also formpart of the Multipartite Monitoring Team that will be formed to monitor compliance of theproject to the ECC/ EMP.

c. Public Disclosure

EA documents should be made available to project- affected persons, local communities andinterest groups while the application for the environmental compliance certificate is beingprocessed. These should also be made available by the borrower/ proponent at a publicplace accessible to the general public and at the World Bank's Infoshop as soon as heenvironmental clearances for the sub-projects are obtained and prior to the commencementof the bid process.

A WB publication, The Disclosure Handbook, January 2003 and the EA Sourcebook Updateno. 26 describe these procedures and how they integrate into the overall EA process as wellas who does what and when in the project preparation cycle.

For Category A Projects, at least two consultations are required (one after draft TORS forthe EIA are prepared, and the second, after the draft EIA is prepared), and for Category Bprojects at least one consultation (either before the EMP is prepared, or after a draft EMP isavailable).

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Figure 3-1: Environmental Assessment Process

Project Siting and Design P J Fect cortponients giveniniSectimz3.2

Ap plIy si ting arld cde,ignl

Conduct consultation with stakeholders criteria isee;.ecton; l.1)

4Prepare project brief and submit to DENRRegional Office to confirm recommendedEA category to be adopted (I EE,expanded IEE or full blown EIS)?

Visit project site, identify impact areasand establish existing environmentalconditions of impact areas

Identify environmental project impacts Seesectin3.3

Classify and screen envronmental impacts Delineate significantby significance using project type specific itnpacts ad elimrinateothers for fUtitherIEE checklist provided by DENR. cothesicleraticti

4Prepare Environmental Management Plan See S ezction 3.4

4- -Prepare an IEE Report _ Se Section3.l (vi)

|I--------.-.-.-..-.-.-.-._--- - Obtaini other

IF,___ requir em ets of IEE

Submit report to DENR (see Section3.1 (l-,iiRegional Office > Application for ECC

Inot approved

4 Application for ECC approved

I Issuance of ECC byDENR Regional Office

4A

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A

Le.-S;jcnai ate PoIl utionOcontrol Officer

0 4Iec c| l ul iL re Ferrn it toC':|onstrUCt frorn CDENR

uO 4Fo:irrri the Mdulti-partite | CompoOifMMT

b r'I ,.,lornitorinq lTearnm |gveninSecion3.4.1 C

F . | roject C.onstruction

a Fr-je':t Operatin |

F|rl'ject abandonnment

Note: The process ab llve shal1 be applic able to each sub-projectin amarketpackage

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d. Project Preparation Cycle

The environmental assessment should be closely coordinated with the other projectpreparation activities (e.g. engineering design, economic analysis, SB and communityconsultations). The preparation should start simultaneously with the initial engineeringassessment and the feasibility study in order to include all environmental aspects in theengineering design right from the beginning. The EIS preparation and ECC processingshould be completed before the signing of the loan agreement with the LGU.

Figure 2 shows the technical aspects preparation vis-a-vis the EA activities.

Figure 2 Schematic presentation of the project preparation cycle

ENGINEERING DESIGN ENVIRONMENTAL ASSESSMENT

Invitation and agreement onparticipation of proponents

CAnstruct/o an o|er n MnScoping and Assessment oflInventory and evaluation of -------_ Environmental baseline conditionsexisting systems [Public consultation]

Pre-feasibility ------ Analysis of environmentalstudy impacts and drafting of EMP

Public consultation andParticipatory selection of alternative

Detailed engineering design, ----- ElS/lEE finalization and processingFinancial analysis and WB Appraisal of ECC and WB EA clearance [Public

disclosure]

Loan agreement with proponet

Construction and operation | Monitorinu and controlof Water Supply System |of ECC /EMP

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It is highly recommended to contract an accredited preparer for carrying out theEnvironmental Assessment (see section 2.4.2). A sample Terms of Reference is provided inthe Operation Manual.

VII. PROCEDURAL GUIDELINES

a. The EA Report

The main steps include:

* Scoping meetings and preparation of a scoping report (see section 1.4 and Chapter2.2);

* Inventory of the environmental baseline conditions (section 3.2).* Potential environmental impacts, direct and indirect, including opportunities for

enhancement (section 3.3).* Systematic environmental comparison of alternative investments, sites, technologies

and designs, including all the significant adverse environmental impacts that areanticipated.

* Drafting of mitigation or environmental management plan (EMP).* Community consultation and participatory selection of WS alternative;* Submission to and clearance of DENR for Categories A and B and the World Bank for

Category A subprojects;* EMP Compliance Monitoring (section 5).

An IEE contains the following basic items:

* a brief description of the project or undertaking and its process of operation;* a brief description of the environmental setting and receiving environment, including

the primary and secondary impact areas;* a brief description of the environmental impact of the project or undertaking,

including its socio-economic impact;* description of the environmental management plan* a documentation of the consultative process undertaken, when appropriate;* a brief discussion of indigenous peoples' concerns and possible socio-economic,

political and cultural impacts of the proposed project or undertakings located inancestral lands or domains, as defined under DAO No. 2, series of 1993, orsubsequently by law, of indigenous communities;

* a brief discussion of gender issues for projects or undertakings with significantimpact on women; and

* a brief discussion of the relationship among population, development, and theenvironment for projects or undertakings with significant impact on population.

b. IEE Review and Approval Process

The proponent submits the proposed project's IEE and secures the ECC from DENR. TheDENR Regional Environmental Management Bureau is in charge of reviewing the IEE. TheIEE is reviewed to determine whether it provides sufficient, appropriate and accurateinformation of the project and its potential impacts. The review will also look into whetherthe Environmental Management Plan sufficiently addresses the predicted negative impactsor risks. The technical review team to review the IEE will constitute staff of the DENR

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Regional Office and/or experts from the academe, other agencies and EIA practitioners to

IEE Submission

DENR Regional -EMB Directorconvenes Technical Committee

15 days

Evaluate IEE based on Review Criteria30 days maximum for substantive review

DENR Regional-EMBPrepares Report and

Recommendation andqiihrnift tn RFD (1 1; rl;:vq)

DENR Regional Executive Director'sDecision on IEE (15 days)

ECC Granted or Project needs anDenied EIS

serve as resource persons. The Regional EMB concerned may decide to conduct on-siteFigure 3. ZEE Review and Approval Process

visits and investigations or hold public consultations with affected communities and theconcerned local government units. These are being coordinated through the DENRProvincial or Community Environment and Natural Resources Officers (PENROs andCENROs), of the provinces and municipalities wherein the project is located.

The recommendation of the Regional EMB is submitted to the Regional Executive Director(RED) who makes the decision to:

* either grant or deny the issuance of the ECC; or* decide that an EIS is further required, in which case he or she shall inform theproponent of such decision.

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For an IEE, the maximum number of days for an ECC to be issued after submission of thereport to the Regional EMB is 75 days (Figure 3). For an IEE Checklist, the maximumnumber of days is 30 days.

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VII. STREAMLINING THE EA PROCESS

An EA shall be conducted for each sub-project (per municipality) included in each marketpackage. Thus, the number of environmental impact assessment reports to be prepared foreach market package are: three (3) for Iloilo (Janiuay, Calinog and Lambunao), four (4) forPalawan (Roxas, El Nido, San Vicente and Taytay), and three (3) for Davao del Sur (DonMarcelino, Malita and Jose Abad Santos).

a. Projects qualified for an IEE checklist

The Memorandum of Agreement between the DOE and the DENR on the Streamlining of theEIS System for Energy Projects indicate the following to be qualified for an IEE Checklist:

Power Criteria

Thermal power plants with rated capacity of less than 10 megawattsHydro-kinetic power plants with rated capacity of less than 10 megawatts

* Unconventional/Alternative Power Generation regardless of capacity

Size Criteria

* Hydro-Kinetic Power Plants with reservoir area below 20 million cubic meters

A Land-Based Power Generating Project IEE Checklist is at present beingdeveloped/reviewed by DOE and EMB-DENR (Annex A) applicable for non-critical projects onunconventional/alternative power generation.

If the above projects are located in an environmentally critical area as defined above, anIEE Report will be needed. Power transmission lines and substations are likewise required tosubmit an IEE.

b. Site selection criteria for specific energy facilities:

The following criteria shall be applied in selecting the sites for the facilities below:

Small diesel power plant

* The households/buildings should be at least 50 meters away from a power plant. Ifemissions are to be emitted by the plant, no residential area should not be locateddownwind the resulting emission plume or exposed to more than, for residentialareas 50 decibels at peak hours and 40 decibels during the wee hours in themorning.The area should be away from the passageways of wildlife.The area should not occupy sites of ecological, cultural, and historical significanceor be sited too close to influence sites of ecologic, cultural, historical significance.Avoid areas where cutting of trees are required.

. Acquisition of land and other assets should be avoided, where feasible , andminimized as much as possible. Resettlement should be minimal or preferably noresettlement at all should be involved.

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Transmission facilities

* The T/L corridor should as much as possible follow (existing rights of way, e.g. thebarangay road networks etc.) and avoid traversing rivers and creeks.

. Households/buildings should be avoided, taking into consideration the electric andmagnetic fields strength's influence on population, health and safety.

* Area should not occupy sites of ecological significance, cultural sites, and historicalsites or be sited too close to influence sites of ecologic, cultural, historicalsignificance.Avoid areas where cutting of trees are required.Avoid areas where significant number of cutting of hardwood or endangered treespecies cutting of trees are required

The sites selected within the declared protected areas should be in accordance with themanagement plans, land use and relevant provisions cited in the NIPAS Act and the ForestryReform Code. For Palawan, the following should be coordinated:

Management Plans of El Nido Managed Resource Protected Area;Malampaya Sound Protected Land and Seascape; and

. Strategic Environment Plan for Palawan by Philippine Council for SustainableDevelopment (PCSD)

b. Potential Environmental Impacts of Energy facilities

The environmental impact assessment encompasses the different project phases: projectlocation, design, construction, operation, and abandonment. The table provided in the IEEChecklist of DENR for impact assessment and mitigation measures will be used in assessingthe significance of predicted impacts and mitigation measures (Annex A). The Checklist willhelp the IEE Preparer to readily screen the project activities, delineate the significantenvironmental impacts, and eliminate others which most likely would generate insignificanteffects.

Considering all possible environmental impacts which can be generated by the projectcomponents, actions that may affect environmental resources and values are the following:

A. Potential Environmental Impacts Due to Project Location

a. Encroachment on precious ecology. Encroachment through protected areas, forestsand game refuge and wildlife sanctuaries is one of the disruptive effects oftransmission line facilities and roads leading to the project site

b. Encroachment on historical/cultural values. The project may impose hazard tohistorical and cultural monuments.

c. Land value changes. A change in the land use where the project is located may resultin permanent loss of the ecological values of the various resources in the land. Itmay also lead to the depreciation of the value of the subject land and nearby landvalues.

d. Effect on the aesthetic value of the landscape. The T/L may obstruct the naturalbalance of the scenery and spoil the natural beauty of the landscape.

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B. Potential Environmental Impacts Related to System Design

a. Environmental pollution control operations. Selection of equipment for controllingpollution emissions consistent with the National air and water qualitystandards/guidelines set by DENR. Fuel quality shall be controlled to reduce airpollutant emissions.

b. Increase in noise at the vicinity of the power plant. The plant shall be designed toreduce noise to acceptable limits (for residential areas 50 decibels at peak hours and40 decibels during the wee hours in the morning) outside the perimeter of the powerplant.

c. Loss of land for power facility. Proper valuation of lost and damaged assets andcompensation.

d. Permanent loss of vegetation and other sensitive ecosystems for areas needed forthe facilities.

e. Interference with other utilities and with traffic and blockage of access ways

f. Escape of polluting materials. Escape of oil due to poor design may result insignificant environmental pollution hazards.

g. Explosions/fire hazards. Inadequacies in design will result to fires/explosions.

h. Adequacy of buffer zone. Buffer zones should be adequate to preventnuisances/damages to nearby properties.

i. Interference with drainage patterns

j. Environmental aesthetics. The design needs to account the need for preservingenvironmental aesthetics.

C. Potential Environmental Impacts Relating to Construction

a. Uncontrolled silt runoff. Top soil removal and erosion of exposed areas due toearthmoving activities, transport and access road construction will causesedimentation and siltation of drainage and waterways.

b. Nuisance to nearby properties. Construction activities may increase dust generationand noise level due to clearing, civil works and earthmoving activities. Fumes fromvehicular emissions may increase.

c. Interference with utilities and traffic and blockage of access ways

d. Blockage of wildlife passageways

e. Land clearing and tree cutting leading to loss of vegetation and wildlife habitat

D. Potential Environmental Impacts Relating to Operations

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a. Pollutant emissions from plant operation. Major pollutants due to fuel combustionfrom diesel generators are sulfur dioxide (S02), nitrogen oxide (NOx) andparticulates. Stack emissions must comply with the national emissions standard, airquality guidelines and ambient air quality standards due to specific emission sources.

b. Generation of wastewater from plant operation and domestic waste. Wastewaterfrom plant operation are generally oily water from plant washings and maintenance.Sewage treatment plant should be provided to contain and treat domestic waste.

c. Generation of non-hazardous solid wastes from domestic activities.

d. Generation of hazardous wastes. Oily wastes are common from diesel generatorplants consisting of oil filters, oily rags and containers and used oil.

e. Inadequate operation and maintenance. Poor operation and maintenance mayresults to lower efficiency thus increase generation of gaseous, water and solidwastes from the plant.

E. Potential Environmental Impacts of Project Abandonment

a. Generation of non-hazardous/hazardous solid waste. Demolition of plant structureswill generate a considerable amount of disposable materials. Areas/Soilcontaminated with oil must be disposed properly.

b. Change in land use. An abandonment plan shall identify and prepare the future landuse.

c. Residuals from poor waste management. Areas/soil contaminated with oil must bedisposed properly.

Summary of Potential impacts and mitigating measures related to energy projects

Table 7-1: Impact Assessment and Mitigation For Energy FacilitiesPredicted Impacts Significance of Impacts** T Mitigating/Enhancement

Predicted_____________________________ I cMeasures

+/- | D/in L/S R/I |A. Environmental Impacts due to Project Siting

A.2 Encroachment on D L I . Avoid siting power plantprecious ecology and at/near densely populatedhistorical/cultural values and ecologically sensitive

areas and those withA.3 Land value / land use D L I historical/cultural valueschanges . Careful design/O&M

monitoring and use ofappropriate environmentalstandards.

B. Environmental Impacts due to Inadeq ate Pr ject DesiqnB.1 Pollutant emissions D L R * Proper selection of equipment

(best available technology. Control fuel quality* Complies with pollutant

emission standards

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B.2 Noise generation D L R * Proper design and selection ofequipment

* Use of exhaust silencers* Sound proofing of generator

housing* Adequacy of buffer zone

B.3 Loss of land/change of D L I Proper valuation of lost andland use for power plant damaged assets andfacility compensation

C. Environmental Impacts of Project ConstructionC.1 Increase in dust D S R * Regular watering of unpavedgeneration due to clearing, roads or exposed soils/groundcivil works and earthmoving * Remove soil/mud from tiresactivities and equipment before leaving

the area.* Hauling trucks should be

covered with canvass or anyequivalent materials

* Set-up temporary fencearound the construction area.

C.2 Top soil removal and D S R * Stockpile the top soil in a safeloss due to earthmoving place and use as final gradingactivities, transport, access material or final layerroad construction * As soon as possible, re-

vegetate the area.C.3 Erosion from exposed D S R * Conduct constructioncuts and landslides due to activities during dry seasonearthmoving and excavation * Avoid long exposure ofactivities opened cuts

* Installation of barrier netsC.4 Sedimentation/siltation D S R * Set-up temporary siltof drainage or waterways trap/ponds to preventfrom unconfined stockpiles siltationof soil and other materials * Proper stockpiling of spoils

(on flat areas and away fromdrainage routes)

* Spoils generated from civilworks be disposed as fillingmaterials

C.5 Pollution of nearby D S R * Set-up temporary disposalwater body due to improper mechanism within thedisposal of construction construction area andwaste properly dispose the

generated solid wastes.. Set-up proper and adequate

toilet facilities. Strictly require the contractor

and its workers to observeproper waste disposal andproper sanitation.

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C.6 Permanent Loss of D S R * Limit land clearing as much asvegetation due to tree possiblecutting and clearing * Provide temporary fencing to

vegetation that will beretained

* Use of markers and fences todirect heavy equipment trafficin the construction site andavoid damage to plants

* Re-plant/ plant indigenoustree species and ornamentalplants

C.7 Disturbance or loss of D S R * Re-establish or simulate thewildlife within the influence habitat of affected wildlife inarea due to noise and other another suitable areaconstruction activities * Schedule noisy construction

activities during day time* Undertake proper

maintenance of equipmentand use mufflers

C.8 Noise generation that D S R * Schedule noisy constructioncan affect the nearby activities during day timeresident * Undertake proper

maintenance of equipmentand use mufflers

C.9 Generation of + D S R * Hiring priority shall be givenemployment to qualified local residents

C.10 Conflicts on right of - D S R * Conduct consultation andway settle agreements before

finalizing detailed design

C.11 Increased traffic and - D S R * Strict enforcement of trafficpossible congestion rules and regulations

* Proponent should providetraffic aid during peak hours

C.12 Increase in the - D S R * Strictly require the contractorincidence of crime and and its workers to followaccidents safety rules and regulations in

the construction area and inthe locality (in coordinationwith local authorities)

D. Environmental Impacts During Project OperationD.1 Generation of gaseous - D/I L R * Adequate treatment ofemissions emissions and the regular

monitoring of air quality -ambient and point source

* Proper O&M practicesD.2 Generation of domestic D L R Provision of an effective (at leasteffluents 3-chamber septic tank)

Provision of adequate wastewatertreatment facilities

D.3 Generation of spent D L R * Segregation and reuse ofchemicals or materials, recyclable materialsused equipment and solid * Proper collection, treatmentwastes and disposal of solid wastes

* Proper housekeeping andwaste minimization

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D.4 Increased traffic and D S R * Strictly enforce traffic rulespossible congestion as well and regulationsas increase risk of vehicular . Placement of signage andand vehicular related warnings in appropriateaccidents placesD.5 Generation of Noise D L R * Use of exhaust silencers

* Sound proofing of generatorhousing

* Adequacy of buffer zoneE. Environmental Impacts from Abandonment of Proje tE.1 Generation of solid D S R * Preparation of abandonmentwaste from demolition of plan and implementation ofbuildings or used equipment site clean-up during plantE.2 Change in land use -/+ D L R demolitionE.3 Residuals from poor D S Rwaste management .

Legend(+) - Positive impact (-) - Negative impactD - direct impact In - Indirect impactL - long-term S - short termR - reversible I - irreversible

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Table 7-2: Impact Assessment and Mitigation For Transmission Lines

Predicted Impacts Significance of Impacts** Mitigating/EnhancementMeasures

1+!-| D/ln L/S R/IA. Environmental Problems due to Project SitingA.1 Resettlement D L I * Avoid siting T/L at residential

areas, taking intoconsideration population,health and safety

A.2 Encroachment on D L I * Avoid siting T/L at/near areasprecious ecology and with ecology andhistorical/social/culturally historical/social/ culturalsensitive areas valuesA.3 Land Value Changes D L I * Include costs in project cost

A.4 Safe Limits for Electro * Existing NPC and NEAmagnetic fields D L I standards should be strictly

followed during siting of linesto ensure safe limits forelectromagnetic fields are notexceeded

B. Environmental Problems due to Inadec uate Proiect DesianB.1 Interference with other - D S R * Careful design and selectionutilities and with traffic and of corridors to beblockage of access ways affected/O&M monitoring andB.2 Escape of polluting - D L R use of appropriatematerials such as oil environmental standards.B.3 Explosion/fire/hazardous - D S RspillsB.4 Inadequate buffer zones - D L Rfor protection of adjacentproperties/valuesB.5 Interference with - D S Rdrainage patternsB.6 Blockage of wildlife - D S Rpassageways, especiallymiqratory bird routesB.7 Impairment of - D L Renvironmental aestheticsB.8 Loss of land due to ROW D L I * Proper valuation of lost and

damaged assets andcompensation

B.9 Safe Limits for Electro * Existing NPC and NEAmagnetic fields D L I standards should be strictly

followed during design oflines to ensure safe limits forelectromagnetic fields are notexceeded.

C. Environmental Problems due to Construction of the FrojectC.1 Uncontrolled silt runoff D S R * Set-up temporary silt

trap/ponds to preventsiltation

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* Proper stockpiling of spoils(on flat areas and away fromdrainage routes)

* Spoils generated from civilworks be disposed as fillingmaterials

C.2 Inadequate construction D S R * Provision of adequatestage monitoring I monitoringC.4 Interference with D S R * Careful/proper constructionutilities and traffic and practicesblockage of access ways * Strict enforcement of traffic

rules and regulations* Proponent should provide

traffic aid during peak hoursC.5 Permanent loss of D S R * Use existing road networksvegetation due to tree as access to constructioncutting and clearing, sitesespecially at the tower * Limit land clearing as muchbases as possible, avoid sensitive

ecosystems* Provide temporary fencing to

vegetation that will beretained

* Use of markers to directtrucks transportingconstruction materials to theconstruction site and avoiddamage to plants

a Replant or replace trees to becut with hardwood and otherfast growing species

C.6 Blockage of wildlife D S R * Careful/proper constructionpassages practicesC.7 Noise generation that D S R * Schedule noisy activitiescan affect the nearby during day timeresidentsC.8 Generation of + D S R * Hiring priority shall be givenemployment to qualified local residentsC.9 Conflicts on right of way - D S R . Conduct consultation and

settle agreements beforefinalizing detailed design

C.10 Increased traffic and - D S R * Strict enforcement of trafficpossible congestion rules and regulations

. Proponent should providetraffic aid during peak hours

C.11 Increase in the - D S R * Strictly require the contractorincidence of crime and and its workers to followaccidents safety rules and regulations

in the construction and in thelocality (in coordination withlocal authorities)

D. Environmental Impacts Relatin, to Project Operation

D e. O&M staff/skills D S to R i Proper provision of O&M skillsinadequate resulting in L includingvariety of adverse effects training/income/workersimilar to items Bi to B7 protectionD2. Inadequate periodic D S to R * Provide adequate monitorinq

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monitoring LLegend

(+) - Positive impact (-) - Negative impactD - direct impact In - Indirect impactL - long-term S - short termR - reversible I - irreversible

d. Environmental Management Plan

The Environmental Management Plan will consist of the following (See Annex A for sampleformats for EMP - Mitigation and Monitoring Plans, Institutional arrangements, etc.):

a. Summary of Impacts per phase of the projectb. Description of mitigation measuresc. Description of monitoring programd. Institutional arrangementse. Implementation schedule and reporting procedures (showing links to over-all project

implementation plansf. Cost estimates and sources of funds (including administrative, design and

consultancy, and operational and maintenance costs resulting from meeting certainstandards or modifying project design to satisfactorily mitigate adverseenvironmental impacts at the least cost)

g. Other procedures/guidelines to ensure implementation of EMPh. Institutional responsibilities for monitoring and mitigationi. Detailed description of institutional strengthening needs

A. Proposed Mitigation Measures

The proposed environmental mitigation measures for different project phases are discussedbelow.

a. Project Design

Small diesel power plants should meet GOP, WB environmental standards be equipped withpollution control devices.

During the design stage, small diesel power plants should be provided with the followingpollution control devices:

* Oil-water separator to hold and remove oil from washings from the power facility;* Septic tank should be provided to handle domestic wastes;* Gaseous emissions control (best available technology and fuel quality) that will meet

the prescribed emission standards for diesel power plants at the stack exit;* Noise control equipment such as exhaust silencers and sound proofing of power plant

building.

Rehabilitation and resettlement of people affected by the project, if any, due to landacquisition should be adequately addressed and follows the government and WBrequirements.

* Land Acquisition and Compensation Plan will be required.* Planning and implementation for acquisition of land and provision of compensation

will be carried out in consultation with the project affected persons (PAPs), to ensure

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minimal disturbance and transparency in transactions between the Projectimplementers and the PAPs.

* Entitlements will be provided to PAPs no later than one month prior to expectedstart-up of works at the respective sub-project site.

* Construction work will not be initiated until PAPs are compensated or adequatelyrelocated.

* Community infrastructure affected must be restored or replaced. Institutional arrangements should be in place to ensure the effective and timely

design, planning, consultation and implementation of the inventories* Effective and timely implementation supervision, monitoring and evaluation of the

resettlement action plans must be carried out.

Where indigenous people are affected they should be informed, consulted and mobilized toparticipate in the project. A certification precondition and the free and prior informedconsent of the IP Community in ancestral domain areas of the proposed project should beobtained. NCIP Administrative Order No. 3, Series of 1998 and 2002 (unpublished) providethe procedural guideline for obtaining the certification

b. Construction Phase

The scope of responsibilities and liabilities of both the project proponent and contractors inenvironmental protection should be clearly defined. The contractor's contract should includeresponsibilities to comply with environmental regulations, the environmental monitoringplan and the cost of protection. The project owner should have a mechanism of checkingand evaluating the compliance of the contractors.

A multipartite monitoring team (MMT) composed of the project proponent, local community,and non-government organizations shall be established. The multi-partite team shall becomposed of:

* One representative from the DENR Regional Office;* One representative from the Proponent or Plant;* One representative from indigenous people group, in existing in the project site;. One representative from the local government unit (eg. municipal development

office) - For Palawan, additional representative from the Palawan Council forSustainable Development; and

* One representative from Project Affected Persons (PAPs).

Rehabilitation of affected areas due to site clearing and excavation should be conducted.This may require stabilization of eroded areas and revegetation of exposed areas. Thereshould be a designated area for spoil disposal, away from surface water run-off.

During construction, hiring priority should be given to the local residents.

c. Operation Stage

Monitoring of environmental impacts due to project operation and compliance to DENR airand water quality standards should be regularly conducted at least every quarter.

Proper disposal of non-hazardous and hazardous wastes. Handling, processing and disposalof hazardous wastes shall comply with DAO 92-29, Implementing Rules and Regulations ofRA 6969.

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Proper operation and maintenance of power plant and T/L facilities should be promoted toavoid waste generation and safety problems.

d. Abandonment

An abandonment plan shall be prepared as part of the IEE Report to address dismantlingand disposal of waste materials, site decontamination, and future land use.

B. Environmental Monitoring Plan

The environmental monitoring program shall encompass all project stages to ensure thatthe proposed mitigations measure are being implemented and garner the intended results.The monitoring program should be able to assess compliance with national standards andthe World Bank requirements and guidelines.

Environmental monitoring shall involve numerous stakeholders: owner of the project or theProponent; project contractors; DENR- CENRO/PENRO; and the Multi-partite MonitoringTeam.

Table 7-3: Environmental Monitoring Plan

Activi Time/FrequencMethod Responsibility Safeguard PoliciesAciiy Tie/FequncyAddressed

A. Project Design

A.1 Acquisition of weekly Verify that there is Proponent OP/BP 4.01 -lands and ROW proper valuation of Regional EMB- Environmental

asset losts or DENR Assessmentdamage, provision of OP/BP/GP 4.12 -compensation and Involuntaryother entitlements Resettlement

Record grievancesand resolution andlength of time theyare dealt with

B. Construction Phase

B.1 Compliance of Weekly Report EM activities Contractor Philippinescontractor on to project proponent PD 984 - Pollutionenvironmental Control Lawprotection/EMP (refer Twice a week Site inspection Proponent RA 8749 - Clean Airto detailed EMP) Act and its IRR (DAO

Weekly Verify grievances and Proponent and 2000-81)resolutions by MMT DAO 90-34 - Waterstakeholders are quality criteriatimely dealt with DAO 90-35- Effluent

standardsPD 1586DAO 96-37RA 8371RA 7611

WBOP/BP 4.01OD 4.20OP/BP/GP 4.12

B.2 Hiring of local Weekly Maintain list of locally. Contractor to Philippine Localworkforce hired workers submit to Government Code

Proponent

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Verify compliance Proponent andM MT

B.3 Compliance to Verify environmental CENRO/PENRO Philippinesconditions of the ECC mitigation measures and MMT PD 1586are being DAO 96-37implemented.

WBOP/BP 4.01

C. Operation PhaseC.1 Stack emission First year of USEPA Methods lto Proponent and Philippinestesting for diesel operation, 5, 7 and 8 (DAO MMT PD 984generators - S02, quarterly and then 2000-81) RA 8749N02 and TSP semi-annually Proponent to DAO 2000-81

afterwards submit quarterlyreport toRegional EMB-

___________________ ___________________ DEN RC.2 Ambient noise First year of Use of noise meter; Proponent and Philippinesmonitoring operation Sampling shall be MMT PD 984

quarterly and then done at different RA 8749semi-annually directions along the Proponent to

plant's perimeter submit quarterlyfence report to

Regional EMB-DENR

C.3 Compliance to First year of Oil and Grease Proponent and Philippineseffluent standards operation testing of effluents MMT PD 984quarterly and then DAO 90-34semi-annually Proponent to DAO 90-35afterwards submit quarterly

report toRegional EMB-DENR

C.4 Toxic and First year of Inventory of Proponent and Philippineshazardous waste operation and materials using MMT RA 6969 - Toxicinventory then semi- checklist Substances andannually, Inspection of Proponent to Hazardous andafterwards integrity of storage submit quarterly Nuclear Waste

facilities report to Control ActRegional EMB- DAO 92-29 - IRR ofDENR RA 6969C.5 Compliance of Once a month Site inspection Proponent and Department of LaborT/L to safety MMT and Employmentstandards

(DOLE) requirementC.6 Compliance to Verify if CENRO/PENRO, Philippinesconditions of the ECC environmental DOE-PMO and PD 1586mitigation measures MMT DAO 96-37are beingimplemented. WB

I OP/BP 4.01

C. Institutional Arrangement

A. Project Design

Department of Energy shall be assisting in the tendering process (which is the primaryresponsibility of SPUG) and shall ensure that environmental protection is included in thetender documents.

The proiect proponent shall conduct information dissemination and consultations with thegovernment agencies (GAs), non-government organizations (NGOs), people's organizations

31

(POs) and project affected persons (PAPs). The key government organizations on

environmental protection are Provincial Environment and Natural ResourcesOffice/Community Environment and Natural Resources Office, RegionalEnvironment Management Bureau, Protected Areas and Wildlife Bureau, NationalCouncil for Indigenous People, National Integrated Protected Areas Program Office,

DOE, Department of Agriculture, Palawan Council for Sustainable Development(Palawan only), and local government units Consultations shall be conducted to seek the

following:

* Ensure that the project are in consonance with the protected area managementplans, IP and NCIP management plan

* Obtain ROW for T/L facilities and acquire land for the power plants to include:Transfer Certificate of Title (TCT), Original Certificate of Title (OCT) and Certificate ofLand Transfer (CLT)

* Acquire requirements for the issuance of ECC to include the following:

Barangay, municipal and provincial resolutions accepting the projectFree and Prior Informed Consent of Concerned IPsClearance from PAWB and PCSD (Palawan only)TCT, OCT, and CLT

The proponent may hire social scientist/community organizers/information and educationspecialists to conduct consultation and information and education campaign (IEC) andformulate memorandum of agreements (MOAs) and contracts.

The proDonent shall acquire ECC by submitting the IEE for each sub-project to the DENRRegional Environmental Management Bureau Office in charge of processing and reviewingthe IEE.

The Regional Executive Director of DENR Regional Office shall decide within 75 calendardays whether an ECC shall be granted or denied.

B. Project Construction

The proponent shall ensure that environmental protection and monitoring is included in thecontractors contract and being implemented. Cost of protection should be provided in thecontract.

The proponent together with the DOE-PMO and DENR Reaional EMB Office will form a

multipartite monitoring team (MMT) in-charge of monitoring project construction andoperation.

The proponent shall assign a Pollution Control Officer during construction activities. ThePCO should be trained and certified by DENR.

The contractor for construction of diesel power plant, T/L facilities, and other powergeneration facilities (eg., hydropower, thermal, etc.) should submit a monitoring report atleast on a quarterly basis to the project proponents all activities that affect the environmentand the actions undertaken to mitigate the impacts as reported in the mitigation plan.

PENRO/CENRO of DENR Regional Office and MMT shall ensure that the proponent complieswith the conditions stipulated in the ECC.

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C. Operation Phase

The Droponent shall implement the environmental monitoring plan and ensure that the ECCconditions implemented.

The proponent shall assign a Pollution Control Officer to ensure environmental protection isimplemented during operation. The PCO should be trained and certified by DENR.

PENRO/CENRO of DENR Regional Office and MMT shall ensure that the proponent complieswith the conditions stipulated in the ECC.

3.4.4 Implementation Schedule and Reporting Procedures

The schedule of environmental protection activities relative to project phases are presentedin Table 3-4.

During construction, project contractors shall be required to submit a quarterly monitoringreport to the project proponent the activities conducted that have a significant impact to theenvironment and the mitigation measures undertaken to minimize if not prevent theimpacts, as contained in a mitigation plan.

DENR requires all industrial plant owners/operators to submit the following:

1. Submit an engineers report for issuance of Permit to Construct2. Quarterly inventory of toxic and hazardous waste;3. Inventory of gaseous and particulate emissions and effluent discharges for the

purpose of annual issuance of Permit to Operate

Table 7-4. Implementation Schedule of EnvironmentalProtection Activities (Months)

Activity 1 1213 4 5 11718191 10 11 12A. Project DesignA. 1 IEC and Consultation vvithStakeholdersA.2 Prepararion of IEE I , !A.3 Acquisition of ROWA.4 Acquisition of Permits from IPs _A.5 Acquire resolution from -

Barangay and rNlunicipality . _ _A.6 Acquire clearance from PCSD ,(Palawan only) l _ l _A.7 Issuance of ECC I I _A.8 Acquire Permit to Constructfrom DENR I _ _ -

B. Project Construction l l l lB.1 Form MMT l _

-

B.2 Environmental rlor'itoring l ! | -I

C. Plant Operation I .C.1 Environmental Nlonitoring ! ! !________

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D. Cost Estimates and Sources of Funds

Table 7-5 presents the cost estimates and sources of funds for environmental protection.

Table 7-5: Cost Estimates and Sources of Funds for Environmental Protection

Activity Estimated Cost Source of FundA. Project Siting and DesignA.1 IEC and Consultation Php 20,000 per municipality Include in project costA.2 Social/IEC consultant Php 30,000 per municipality Include project costA.3 Processing of permits, Php 20,000 per municipality Include in project costclearances and ECCsA.4 Preparation of IEE Php 100,000 per sub-project Include in project costA.5 Acquisition of land for For valuation Include in project costdiesel power plant and ROWB. Project ConstructionB.1 Environmental Monitoring P20,000 per municipality Administrative cost during

constructionB.2 Training of Pollution Php 20,000 Include in administrative costControl OfficerC. Project OperationC.1 Environmental Monitoring P 20,000 per stack (S02, N02 O& M expenses of diesel power

and TSP) plantP 10,000 per ambientmonitoring station (S02, N02,TSP and Noise)

C.2 Training of Pollution Php 20,000 per year Include in administrative costControl Officer

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Annex A - IEE Checklists

LAND BASED POWER GENERATING PROJECTSInitial Environmental Examination (IEE) Checklist

GUIDE FOR PROPONENTS

GENERAL INSTRUCTIONSThe accompanying IEE Checklist is applicable only for Land Based power generating Projects that includes the following criterias:

1. Land Based Power Generating Projects include the following:a. Thermal Power Plants

- Coal-Fired Thermal Power Plants- Diesel/Oil-Fired Thermal Power Plants- Natural Gas Thermal Power Plants- Geothermal Power Plants-Place under "c" Unconventional/Alternative Power Generation- Combined Cycles

b. Hydro-Kinetic Power Plants- Dams- Run-off River- Hydro-power

c. Unconventional/Alternative Power Generation- Solar Power Generation- Wind/Wind Hybrid Power Generation- Biogas/Biomass Power Generation- Others

2. Power Criteriaa. Thermal Power Plants with rated capacity of less than 10 megawattsb. Hydro-Kinetic Power Plants with rated capacity of less than 6 megawattsc. Unconventional/Alternative Power Generation regardless of capacity

3. Size Criteriaa. Hydro-Kinetic Power Plants with reservoir area below 25 million cubic meters

The Project Proponent or his duly authorized representative/s shall accomplish this checklist. Three (3) copies shall be submitted to EMB RegionalOffice in the area. Use additional sheets if necessary.

This checklist does not include other Offshore Generating Facility/Plant. (i.e. Offshore rigs with power plants, Ocean Thermal Power, Wave PowerGeneration, Power Barges, etc.)

DEFINITION OF TERMS

Project Description

PROJECT NAME refers to offlcial name of project

PROJECT LOCATION refers to location of project. Proponent should provide complete physical description of the location of the project as wellas its political boundaries (e.g., sitio, barangay, town/municipality, province, etc.)

PROJECT DESCRIPTION provide short description of the project (e.g type of power generation, rated Capacity,engineering dimensions, etc.)

NAME OF PROJECT refers to the ownerof the project (e.g., DPWH, NIA, and name of private company (etc.)

CONTACT PERSON refers to person/s who is authorized to transact with DENR/EMB on behalf of the Proponent (e.g., mayor, municipalengineer, project engineer, etc.)

ADDRESS refers to officialaddress of proponent and contact person/s. The address of contact person/s should also be given ifdifferent from that of the proponent.

PROJECT IMPACTS IDENTIFICATION, ASSESSMENT AND MITIGATIO/ENHANCEMENT

Answers under the MMGATION/ENHANCEMENT MEASURES shall describe ALL the mitigation measures for negative impacts or the enhancementmeasures for positive impacts.

REQUIRED ATTACHMENTS

* Letter Request/Covering Letter* SEC Registration or DTI Certification of the proprietor (for businesses)* Zoning Certification from HLURB/MPDC, with or without an approved land use* Height Clearance Permit from the Air Transportation Office (ATO) of the Department of Transportation and Communication (DOTC) if the project is

Wind/Wind-Hybrid Power Generation;* Colored Pictures (panoramic view with captions)* Barangay Resolution or City/Municipal Resolution* Topographic Map (1:10,000)* Certified copy of the TCT or OCT is not with the name of the applicant, SPA or Joint Venture Agreement will be required)• Oath/Affidavit of Undertaking* Accountability Statement of project Proponent and IEE Preparer/s• Receipt of the Processing fee (worth Php 3,000.00)

INITIAL NVIRONMENTAL EXAMINATION(IEE) CHECKLIST

FOR LAND BASED POWER GENERATIONPROJECTS

1. GENERAL INFORMATION:

1.1 Project Name/Title

1.2 Name of project ProponentContact Person/DesignationAddress :

(complete address street/sitio/barangay, city/municipality,province)Telephone/Fax No: :E-mail :

1.3 Project Location :(complete address street/sitio/barangay, city/municipality,province)

(Attach location map with important landmarks and access points indicated as Annex 1)

1.4 Project Status []Proposed [ ] Existing [] Expansion

1.5 Project Ownership: []Single Proprietorship []Corporation[]Partnership/Joint Venture [] Cooperative[]Others, please specify

2. PROJECT DESCRIPTION

2.1 Project Area CoverageTotal Land Area to be developed (m2/ hectare)

2.2 Proof of Ownership (Please attach pertinent document)

2.3 Project Facilities(Attach complete lay-out/site development plan including expansion plan of the proposed building)

Facility Area (sq. m)/ Capacity/ No.

(use other sheet when necessary)

2.4 Water Resources and Infrastructures

a. Water demandEstimated water requirement during construction . cu.m. per day

Estimated water requirement during operation : cu.m. per day

b. Water supply/sources* Existing public water supply• Surface Water

2.5 Power supplySource of Power [] Local electric cooperative

[] Own generator capacity.[]Others, specify

2.6 Drainage System(Attach drainage lay out plan as Annex)

Type of Drainage availablea. Major roads [ ] Open canal [ ] Closed/underground drainage [] None

b. Other roads [ ] Open canal [ ] Closed/underground drainage [] None

Where does the drainage system drain?

[]Public drainage system [] Natural out fall/ water bodyif drainage will go a water body, specify name and location:

2.7 Sewage Disposal System(Attach sewage design layout as Annex)* Sewage system

[ ] Individual septic tank []communal septic tank []Centralized septic tank

* Sewage disposal[] Discharge to an existing public sewerage system

[]Treated in a community disposal plant or communal septic tank[]Treated in individual septic tanks with disposal by absorption field or leaching pit

[]Others, specify:

2.8 Solid Waste Collection and Disposal SystemCollection System

[] building/project maintained garbage collection system[] integrated into municipal garbage collection system[ ] others, specify:

Will there be waste sorting/ segregation prior to disposal? []Yes []NoDisposal system

[ open dumpsite outside of the project area[] municipal/city landfill area[]Others, specify:Location of the waste disposal site:

2.9 Handling and Disposal of dangerous substances (if applicable)* What kind of dangerous substances (e.g. oil, lubricants, chemicals; specify) are used during:

Pre Construction :Operation and Maintenance Phase:

Is an oil-water separator installed ? [ ] No [ ] Yes, Location:What Lubricants Collection and Disposal Systems is used/

Collection System:

Volume of storage containers (liters):Storage location:

Disposal System:[]Recycled []Sold to Recyclers[ Others (specify):

For thermal power, what is the fuel type and composition (eg., sulfur and ash content):

3. DESCRIPTION OF EXISTING ENVIRONMENT (attach separate sheet if necessary)

Components/Parameters Yes No Remarks1. Slope and topography of the area covered by the

project- Terrain is flat (0-3% slope)- Gently sloping or undulating (3-8% slope)- Undulating to rolling (8-18% slope)- Rolling to moderately steep (18-30% slope)- Steeply rolling (30-50% slope)- Very steep to mountainous (>50% slope)2. Are there areas in the site where there are possible Cause of erosion:occurrence of soil erosion? [] heavy rains

[] unstable slopes[ others, specify

3. Are there indicators on the area of the following? [ ] erosion[] liquefaction[] landslide[]ground subsidence[] none

4. Has the area experienced any flooding during the wet Period of Flooding:season or typhoon?

Causes of flooding:[] low area[ ] poor drainage

__ []water-logged areas

5. What is the existing air quality condition in the area? Provide air qualitymonitoring data

5. Are there existing water bodies within 1.5 km of the If yes, indicate the name

proposed building, e.g. creeks or streams? Information and distance of the

regarding quantity, quality, and availability of any water body.

groundwater resources-should also be secured.

6. What are the present usage of the water resources Provide water quality

within or near the project site? monitoring data

[] Bathing[]washing[]fishing[]source of drinking water[] recreation (swimming, boating, etc.)

]Others, specify7. Are there Critical Ecological System (Mangrove, Type:Forestlands, etc.) within or near the area? Are any of []mangrove

these ecosystems protected by national law, or [ ] sanctuaryinternational treaties/agreements/conventions? []forestland

[ ] corals[]aquifer

8. Will the proposed project be located in a reclaimed If yes, present result of

area? the sol stability study inAnnex

9. Are there existing structures or developments around If yes, please list them

the project site? down:

10. Are there public or private easements across site?

11. Are there existing environmental problems within Indicate if there are500 m influence area incidence of the following:

[]water pollution[]air pollution[] noise pollution[ ] soil erosion[]flooding[]Others, specify

12. Are there existing trees and other types of If yes provide examples:vegetation in the site13. Are there birds and other forms of wildlife found in If yes provide examples:the area and which has significant value14. Are there fishery resources in the water bodies near If yes provide examples:or within the site?15. Are there existing settlement in the proposed project If yes, indicate thesite who will be affected? number:

Households:_Legitimate landowners:

Tenants:

Squatters:

16. Are there local organizations in the area? Please give examples:Providedetails_

17. Are there oppositions to the project? Indicate reason foropposition:

Table 5-8: IMPACT ASSESSMENTAND MITIGATION FORDIESEL POWER PLANT AND SOLAR PVS

Predicted Impacts Significance of Impacts** Mitigating/EnhancementMeasures

_____ +/ D/n L/S R/IA. Project SitingA.1 Resettlement . Avoid siting power plant near

residential areasA.2 Encroachment onprecious ecology and . Avoid siting power plant at/nearhistorical/cultural values areas with ecology and

historical/cultural values

B.1 Pollutant emissions . Proper selection of equipment. Proper fuel selection

B.2 Noise generation . Proper selection of equipment. Use of exhaust silencersa Sound proofing of generator

housing. Adequacy of buffer zone

C. Pre-Construction and Construction Phase of the ProjectCl. Increase in dust * Regular watering of unpavedgeneration due to clearing, roads or exposed soils/groundcivil works and earthmoving . Remove soil/mud from tires andactivities equipment before leaving theExhaust emissions from area.equipment and construction a Hauling trucks should bevehicles covered with canvass or any

equivalent materials. Set-up temporary fence around

the construction area.. Vehicle/machine fuels should

meet EU standardsC2. Top soil removal and loss * Stockpile the top soil in a safe

due to earthmoving activities, place and use as final gradingtransport, access road material or final layerconstruction . As soon as possible, rip-rap or

re-vegetate the area.C3. Erosion from exposed cuts * Conduct construction activitiesand landslides due to during dry seasonearthmoving and excavation . Avoid long exposure of openedactivities cuts

_ Installation of barrier netsC4. Sedimentation/siltation of . Set-up temporary silt trap/pondsdrainage or waterways from to prevent siltationunconfined stockpiles of soil . Proper stockpiling of spoils (onand other materials flat areas and away from

drainage routes). Spoils generated from civil

works be disposed as filling.__________________ materials

C5. Pollution of nearby water . Set-up temporary disposalbody due to improper disposal mechanism within theof construction waste construction area and properly

dispose the generated solidwastes.

. Set-up proper and adequatetoilet facilities

. Strictly require the contractorand its workers to observeproper waste disposal andproper sanitation.

C6. Loss of vegetation due to a Limit land clearing as much asand clearing possible

* Provide temporary fencing tovegetation that will be retained

. Use of markers and fences todirect heavy equipment traffic inthe construction site and avoid

damage to plants* Re-plant/ plant indigenous tree

species and ornamental plantsC7. Disturbance or loss of . Re-establish or simulate thewildlife within the influence habitat of affected wildlife inarea due to noise and other another suitable areaconstruction activities . Schedule noisy construction

activities during day time. Undertake proper maintenance

of equipment and use mufflersC8. Noise generation that can . Schedule noisy constructionaffect the nearby resident activities during day time

. Undertake proper maintenanceof equipment and use mufflers

C9. Generation of employment * Hiring priority shall be given toqualified local residents

ClO. Conflicts on right of way * Conduct consultation and settleagreements before finalizingdetailed design

CI1. Increased traffic and _ Strict enforcement of trafficpossible congestion rules and regulations

. Proponent should provide trafficaid during peak hours

C12. Increase in the incidence . Strictly require the contractorof crime and accidents and its workers to follow safety

rules and regulations in theconstruction and in the locality(in coordination with localauthorities)

C13. Generation of domestic Provision of an effective (at least 3-effluents chamber septic tank)

Provision of adequate wastewatertreatment facilities

C14. Generation of solid waste * Segregation of recyclable

materials* Proper collection and disposal of

solid wastes. Proper housekeeping and waste

minimization1 Strictly enforcement of traffic

rules and regulations2 Placement of signage and

warnings in appropriate placesD. Environmental Impacts Relating to Project Oper ation

DI. O&M staff/skills D S to R . Proper provision of O&M skillsinadequate resulting in L includingvariety of adverse effects training/income/workersimilar to items Bi to B7 protectionD2. Inadequate periodic D S to R 1 Provide adequatemonitoring I_I L monitoring

LEGEND: (+) - positive impact (-) - negative impactD - direct impact In - Indirect impact

L - long term S - short termR - reversible I - Irreversible

INITIAL ENVIRONMENTAL EXAMINATION (IEE)CHECKLIST REPORT

FOR POWER TRANSMISSION LINESAND SUBSTATION

1. GENERAL INFORMATION:

1.1 Project Name/Title

1.2 Name of Project Proponent/ :-Contact Person/DesignationAddress

(complete address street/sitio/ barangay, city/municipality, province)Telephone/Fax No:E-mail

1.3 Project Location(complete address street, sitio, barangay, city/municipality, province)

(Attach location map with important landmarks and access points indicated as Annex 1)

1.4. Project Objectives[ Proposed [] Existing []Expansion

()Rehabilitation ( ) Area( ) Demolition & Put up ( ) Additional facilities

Specify

Purpose : [] Office building[ ] residential building[3 ] office/residential building[ ] others:

1.5 Total Cost (civil works and equipment): 4 (range)

Environmental Cost :

Mode of Project FinancingSelf-Financed Bank LoanGovernment Financing Others

1.6 Project Ownership:[]Single Proprietorship []Corporation[] Partnership/Joint Venture []Cooperative[]Others, please specify

1.7 List of Owners (For Partnership/Corporation)

2. PROJECT DESCRIPTION

1 Transmission Line (T/L)

1.1 Describe the general location of the project.Developed Area (within a built-up area with presence of utility systems or network,especially water supply, roads and power supply)Underdeveloped Area (relatively far from the urban center with predominant absence of utilitysystem)

[Provide vicinity map (drawn to scale) indlcating land uses as well as existing facilities and utilities within T/L ROW as Annex 2]

1.2 Project Specifications:

Voltage Rating: kV

1.3 Type of Transmission Line

Single Circuit others, specifyDouble Circuit

1.4 Land Use Classification (based on existing land use or approved land use plan of the city or municipality)

Agricultural Tourism Others, specifyIndustrial Forest LandCommercial Open spacesResidential Institutional

1.5 Total Length of Transmission Line:

1.6 Width of T/L Right of Way: 69 kV 15 m138kV 30m230 kV 40 m350 kV 50 m

500 kV 60 m Others, specify_

1.7 Type of Line Supports:

Poles Wood ConcreteSteel

Steel Towers Flexible TensionSuspension

1.8 Total Number of Supports:

1.9 Estimated Length of T/L by Barangay/City/Municipality/Province

(Begin from startina point to end point)BARANGAY MUNICIPALITY/ PROVINCE ESTIMATED T/L

CITY LENGTH

(use another page for additional areas)

1.10 Conductor Material:

Solid hard-drawn copperStranded copper

Copperweld copperHollow copper conductor, strandedHollow copper conductor, segmentedAluminum stranded, steel coredOthers:_

1.11 Line Insulators: (Attach pictureJ

Pin Type Long Rod TypeCap and Pin Type others, specify

1.12 Pole/Tower Design:

[Attach typical design or pole/tower layout as Annex 3

1.13 Protection System Description:1.14 Existing Parallel T/L, if any ?

1.15 Power Grid Network Map

1.16 Type of Connection:

From power plant to existing TL Indicate name of power plant:From power plant to substationFrom power plant to dead end Indicate name of substation:From substation to existing TLFrom substation to dead end Indicate name of TL:From existing TL to another TLFrom existing TL to dead endOthers, pis. specify

To (Indicate name of S/S or cut-in point and location)

2 Substation

2.1 Land Ownership and Status of Land Ownership

Owned/Titled by virtue of: [attach photocopy ofOCT/TCT # document as Annex 4]

CLT/Emancipation Patent No.Free Patent No.

Homestead Patent No.Owned/Untitled (Tax Declaration)Stewardship Contract:Lease Contract No.Others, specify:

2.2 Describe the general location of the project.Developed Area (within a built-up area with presence of utility systems or network,especially water supply, roads and power supply)Underdeveloped Area (relatively far from the urban center with predominant absence of utilitysystem)

[Provide vicnity map (drawn to scale) indicating land uses as well as existing facilities and utilities within Substation Site as Annex3J

2.3 Scheme

Radial others, specifyRing busOne-and-half breaker

2.4 No & Capacity MVA

2.5 Voltage: (HV/MV/LV) kV

2.6 Switchgear Type:

Air-insulated Gas insulated Hybrid

2.7 Insulating Medium Power Circuit Breaker

Mineral oil Gas others, specify

2.8 Transformer

Mineral oil Gas other, specify

2.9 Protection System Description

2.10 Communication Tower, if any?

Attach colored photo of starting of starting point of transmission line route(north view)

Attach colored photo of starting point of transmission line route(south side view)

Attach colored photo of end point of transmission line route(north side view)

Attach colored photo of end point of transmission line route(south side view)

Attach colored photo #1 of a selected portion of the transmission line route(please indicate in the map)

Attach colored photo #2 of a selected portion of the transmission line route(please indicate in the map)

3. T/L and Substation

3.1 Manpower and Employment [Provide a listing of manpower requirements as Annex 6]

How many people will be employed by the project?

During the construction period: T/L S/SDuring the operation andMaintenance period: T/L S/S

3.2 LGU Statements about the Project

[Attach photocopies of LGGU statement as Annex 71

3.3 Construction Schedule: [Attach schedule of development activities from pre- construction, construction to the operation phase in a Gantt

Chart as Annex 8]

C. DESCRIPTION OF EXISTING ENVIRONMENT

1. Physical EnvironmentT/L S/S Remarks

Components/Parameters _ Y N Y N

What is the elevation range of the route (masl)?

< 100 masl100 - 300 masl300 - 500 masl500 - 1,000 masl1,000 - 1,500 masl> 1,500 masl

[To determine the elevation, refer to thetopographic map which shows the elevation percontour line]Slope and topography of the route (Indicate the area per

slope category)

Is the terrain flat or level (0 - 3% slope)?gently sloping or undulating (3 - 8% slope)?undulating to rolling (8 - 18% slope)?rolling to moderately steep (18 - 30% slope)?steeply sloping (30 - 50% slope)?very steep to mountainous (>50% slope)?

What is the general geology of the area/route? If yes, causesof flooding or

Are there indications of landsliding in the tower landslides:

site? Slide pronesteep slopes

1. Physical Environment

T/L S/S RemarksComponents/Parameters Y N Y N

OthersAre there occurrences of flooding at the site?

Low lying areaPoor drainageOthers

Soil type of the site: sandy soil? Other soil type:clayey soil?sandy :loan soil?

Is there any indication of erosion occurring alongthe route? If yes, what type of

erosion:

Generally categorize rate of erosion based on Natural,observation: Man-made

(specifySlight : sources ofModerate : erosion suchSevere : as kaingin,

logging, etc.)

Does the route traverse part of the drainage area Please enumerate the riverof a river system? system or water rivers

affectedThe site affects what river system or water bodies?

. [These must be indicated or shown in thetopographic ma__l

1. Physical Environment T_L I ____Remarks

Components/Parameters Y NY N Y

Are there other natural drainage ways/creeks alongthe route that drain towards communitiesdownstream?

Is the area frequently visited by typhoons? Year

When was the last typhoon, which visited the area? Wind speed_ (kph)

Average number of typhoons per year:

Is there a record of tornadoes/twisters, whichoccurred in the area?What is the nearest earthquake, fault zone orvolcano, etc. in the area?Identify the name of zone:Distance _ _ (m or km)

Had there been any incidents such as lightningstrikesNear or along the route?

2. Biological EnvironmentAre there any protected areas to be affected by theproject?Are there areas ofcultural/sociological/historical/archaeologicalinterests to be affected by the project?Are there existing trees and other types ofvegetation along the route?If yes, indicate the forest type/vegetation.

Are these birds and other forms of wildlife found inthe area? Are there bird migratory pathways to beaffected?Are there fishery resources in the water bodiesfound near or along the route?Will the route pass near or across a watershed orforest reservation area?If near only, how near? m or kmIf across, indicate name of the watershed or forestReservation area.If answer is yes to any of the above answers, please list down these species (common or local name) in the table provided below.

T/LBirds and Other Wildlife Trees and Other Fishery Resources

Important Vegetation1.2.3.4.5.

S/S

Trees and Other Fishery ResourcesBirds and Other Wildlife Important Vegetation

1. .________________ ___________________

2.3.4.5.

What are the existing forest resources within the T/L route that are important to the community?

TimberFuelwoodnon-timber products, e.g.food plantsmedicinal plantswild animals, e.g.minerals, e.g.others, specify

3. Socio-Cultural and Economic EnvironmentTotal Number

Components/Parameters T/L S/S

Are there existing settlements in the project site?If yes, how many households or families?

How many are legitimate landowners?How many are tenants?How many are caretakers?How many are squatters?

What is the total population of the barangays covered bythe project?

Barangay:1.2 . _ _ _ _ _ _ _ _ _ _ _ _ _

3.4.5.6 . _ _ _ _ _ _ _ _ _ _ _ _

7.8.

9 . _ _ _ _ _ _ _ _ _ _ _ _ _

10 . _ _ _ _ _ _ _ _ _ _ _ _

Average family size:

How many of the houses are made of concrete?Made of wood?Made of concrete and wood?Made of brick?Made of adobe?

3. Socio-Cultural and Economic EnvironmentTotal Number

Components/Parameters T/L S/SAre there ancestral lands or indigenous people communitiesalong the route or within the Project site?

Indicate group:

What are the leading causes of morbidity and mortality in the Province?

MorbidityIllness/Disease No. of Incidence Rate/100,000 population

1.2.3.4.

MortalityIllness/Disease No. of Incidence Rate/100,000 population

1.2.3.4.5.

Are there existing local organizations in the area? FN Y F N

If yes, please list down these organized groups e.g. associations, cooperatives, etc. below:

2

345

Are there social infrastructures within the Project site? C Y E N

If yes, what are these social infrastructures? (Please check)

o schools o health centers/clinicso roads El communication (radio, TV, mail, newspaper)o police station/outpostu community centeru1 hospitals o transportationO churches/chapels o others

D. IMPACT ASSESSMENT AND MITIGATION

Potential Impact (+) / (- S / L D/In R/I Mitigating/Enhancement) r Measures

DURINGPROJECTCONSTRUCTION

DURINGPROJECTOPERATION

DURINGPROJECT ABANDONMENT

Legend:(+) - positive (-) - negativeD - Direct In- IndirectS - Short term L - long termR - Reversible Ir - Irreversible

PROPONENTS' COMMITMENTS AnswerAre you committing yourself to...?

Yes NoComply with existing environmental rules and regulations,Guidelines and criteria?Implement all mitigation and enhancement measures and environmental managementplan that are indicated in the report?Abide and conform with the prescribed rules and specifications forpower transmission lines as contained in the Electrical Code of the Philippines?Construct, operate and maintain well-designed transmission poles, towers and otherrelated structures?Establish adequate buffer zones from the right-of-way of the transmission linesComply with all stipulations indicated in any agreement forged with private or publicauthorities?Report to proper government authorities any illegal forest activities that may bepresent or happening in the project area?Immediately replace/rehabilitate/repair damaged structures/lines resulting fromnatural or man-made calamities?Organize and conduct information, education and communication (IEC) activities onsafety and potential hazards of the project in the affected communities?Properly brief or orient the proponent's staff about the ECC conditions, commitmentsand agreements made about the project?Others, please specify.

G. ATTACHMENTS/ANNEXES

Title or Description Put a check( )mark

1. Location Map2. Photocopy of TCT/OCT/CLT, etc.3. Vicinity Map4. Tower/Pole Design Layout5. Power Transmission Line Route (1,10:000)6. Listing of Manpower Requirements7. Photocopies of Agreements/Right-of-Way Grants8. GANTT Chart (Schedule of Activities)

9. Topographic Map (1:10,000)10. Clearance from Office of Cultural Communities (if traversingancestral lands or indigenous people/ communities)11. PAWB Clearance (if traversing a Protected Area)12. Endorsement of the Municipal or City Provincial Council

ACCOUNTABILITY STATEMENT

This is to certify that all the information and commitments in the Initial Environmental Examination (IEE) Report are true, accurate andcomplete. Should we learn of any information to the attention of the appropriate EMB DENR Regional Office.

We hereby bind ourselves jointly and solidarily to any penalty that may be imposed arising from any misrepresentation or failure to statematerial information in this IEE Report.

It witness whereof, we hereby set our hands this day of at

Project Proponent

Title/Designation

ACKNOWLEDGEMENT

BEFORE ME this day of , 19At , personally appeared

with Community Tax Certificate No. issued on

at in his/her capacity as

and acknowledged to me that this IEE is his/her

voluntary act and deed, and the voluntary act and deed of the entity he/she represents. This document, which consists of pages,including the page on which this acknowledgement is written is an Initial Environmental Examination (IEE) Report Checklist.

Witness my hand and seal on the place and date above written.

Notary Public

Doc No.Page No.Book No. _

Series of

Sample Formats for:

ENVIRONMENTAL MANAGEMENT PLAN

A. MITIGATION PLAN

Cost Institutional Responsibility Comments(e.g. secondary

impacts)Phase Issue Mitigating Install Operate Install Operate

MeasureConstruction

Operation0.

Decommissioning

B. MONITORING PLAN

Cost ResponsibilityPhase What Where How When Why Install Operate Install Operate

parameter is the is the is the Is theis to be parameter parameter parameter parametemonitored to be to be to be? monitored monitored/ monitored- r to be

? type of frequency of monitoremonitoring measureme dequipment? nt or (optional

continuous? )?

Baseline

Construct

Operate

Decommission

C. INSTITUTIONAL STRENGTHENING

1. Equipment Purchases (Tabular Presentation Preferred)

List:* Type of equipment* Number of Units* Unit cost* Total Cost* Local or International Purchase

2. Training/Study Tours

List:* Type of Training (Mitigation, Monitoring, Environmental Management, Other)* Number of Students

Current and Future Organizational Unit in Which They Work or Currentand Future Title/Job Description

* Duration of Training* Start Date/End Date (for each student)* Venue of Training (Domestic or Abroad)* Institute or Organization to Provide Training* Cost (Local and Foreign)

3. Consultant Services

* Type of Service* Terms of Reference* Justification* Cost

4. Special Studies* Justification* Terms of Reference* Cost

D. SCHEDULE

Present (preferably in Chart Form) Start Dates and Finish Dates for:

* Mitigation Activities* Monitoring Activities* Training Activities

This information should be on the same chart defining the overall project schedule(Project Implementation Plan)

E. INSTITUTIONAL ARRANGEMENTS

A narrative discussion supported by organizational charts detailing:

* Responsibilities for mitigation and monitoring* Environmental information flow (reporting-from who and to who and how often)* Decision making chain of command for environmental management (to take

action, to authorize expenditures, to shut down, etc.)

In short, how is all the monitoring data going to be used to maintain sound environmentalperformance-who collects the data, who analyzes it, who prepares reports, who are thereports sent to and how often, and who does that person send it to, or what does he/she dowith the information-who has the authority to spend, shutdown, change operations etc.

F. CONSULTATION WITH LOCAL NGOs AND PROJECT-AFFECTED GROUPS

Provide documentation of the following:* Date(s) consultation(s) was (were) held* Location(s) consultation(s) was (were) held* Who was invited

Name, Organization or Occupation, Telephone/Fax/e-mailnumber/address (home and/or office)

*Who attendedName, Organization or Occupation, Telephone/Fax/e-mailnumber/address (home and/or office)

* Meeting Program/ScheduleWhat is to be presented and by whom

* Summary Meeting Minutes (Comments, Questions and Response by Presenters)Baratz/papers/empform.doc 10/12/99

Policy Framework and Procedural GuidelinesSocial Safeguard Policies

Background:

Rural Electrification is a pro-poor flagship program of the Department of Energy (DOE)which aims to improve the quality of life in the rural areas through the provision of adequate,affordable and reliable energy services in a sustainable manner. The Phillippine Energy Plan in1999 set an ambitious target of of increasing the rural electrification ratio to 90% at thebarangay level by year 2004. By last year, the government, through its Accelerated BarangayElectrification Program, stretched its target to hit 100% power coverage of barangays for year2004. This means electrification of some 8,300 barangays for the period 2001-2004.

Many of the rural barangays with no access to power are located in remote areas, orwith low sales densities; grid extension in most parts are not viable. Only about half of theremaining unelectrified barangays are expected to be connected to the main grid, while the restwill have to be served by decentralized electrification schemes (off-grid or mini-grid). Given thequantum leap in financing requirements for the rehabilitation and expansion program, coupledwith fiscal and institutional constraints, as well as low returns for expansion investment ingeneral, the Government finds it extremely ambitious and challenging to meet its stretchedtargets.

The Project:

The proposed APL will support the GOP in the implementation of reforms and priorityinvestments in order to meet the needs of rural communities for adequate, reliable andaffordable energy services in an efficient and sustainable manner. Proposed to be rolled out in 4Phases over a period of 12-14 years, the Project will address deep-seated problems in the ruralpower program, through incremental changes, given the sector's limited absorptive capacity.

The Project will complement current efforts of the Bank and other donors inimplementing other social and infrastructure projects designed to facilitate rural development inthe country. At the global level, the Project will contribute to the mitigation of climate changecaused by greenhouse gas emissions through wider use of clean, renewable energytechnologies in power generation. This will be complemented by grid system rehabilitation andloss reduction in distribution systems operated by electric cooperatives which will lead toincreased operations efficiency, resulting to decreased/avoidance of polluting diesel-fueledpower generation schemes.

Due to the archipelagic geography of the country, off-grid or mini-grid solutions areexpected to be the least-cost solution for about half of the non-electrified barangays. It isexpected that environment-friendly renewable energy technologies(RETs), particularly photo-voltaic (PV) systems, will be competitive in many off-grid and mini-grid applications, if marketbarriers to their adoption are significantly reduced. While the government acknowledges the factthat participation of the private sector is essential if it were to meet its rural electrificationobjectives, there are not enough commercial incentives for the private sector alone to establishthe business of electricity provision to such rural areas. The pilot project component intends totest mechanisms to remove such market barriers, and eventually pave the way for the wideradoption of RETs in off-grid electrification.

Bank Loan support for priority investments will be in two broad subsectors:

1

* Decentralized electrification (off-main grid) - covers small-scale energygeneration and provision of electricity to households, public centers such asschools, health clinics and productive applications; they can be divided into twobroad categories:

o for the concentrated users it is normally a minigrid (or microgriddepending on the number of connections) powered by a centralizedgeneration system, usually diesel, hydro or biomass power

o for the dispersed users, the least-cost solution is normally individualphotovoltaic (PV) systems, also called solar home systems (SHS).

* Grid Subcomponents - includes rehabilitation and upgrading of existing systems,to improve efficiency and reliability of services; and intensification of the powerdistribution system to increase service coverage of barangays and households.

For both sub-sectors mentioned above, there will be no long transmission lines used butinstead short distribution lines to connect to the users.

Project-Triggered Safeguard Policies:

As the Project will be demand-driven, the possible social and environmental impacts ofthe sub-projects cannot be determined at this time, considering that technology options have notbeen identified. For renewable energy technologies however, land acquisitions are projected tobe minimal (for community substations, easements for distribution systems, infrastructurefacilities for windpower, biomass, and small hydro resources). There may also be procurementsfor Rights-of-Way for Rural Electric Cooperatives which may opt to expand service coverage orrehabilitate substations but again, these are projected to be minimal.

As the Project will may cover remote barangays, contact with Indigenous Peoples,especially in the rolling and upland barangays, may occur. In such cases, all sub-projectproponents will have to meet the requirements of the Project's Policy Framework for IndigenousPeoples, aside from the Land Acquisition, Resettlement and Rehabilitation Policy Framework.These two Project policies will respond to the Bank's Social Safeguard policies on IndigenousPeoples (OD 4.20) and Involuntary Resettlement (OP 4.12) which may be triggered by the sub-projects.

As the Project will allow qualified third parties to provide energy services, the two policyframeworks will have to be complied with by all groups participating in the Project, such asgovernment entities, private rural energy service cooperatives, NGOs, and local cooperatives.

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1. Policy FrameworkLand Acquisition, Resettlement and Rehabilitation of Project-Affected-Persons

Introduction:

This Policy Framework and Implementation Guidelines are adopted, to govern theconduct of land acquisition, resettlement or rehabilitation of project affected persons(PAPs) ofthe Rural Power Project. While the number of people and the magnitude of adverse impacts areprojected to be minimal due to the nature of the community-based decentralized electrificationsub-projects or the Rural electrification rehabilitation/expansion sub-projects, the Project shallendeavor to minimize the number of Project-Affected-Persons(PAPs) and/or adverse impacts ofthe sub-projects to households and communities.

This document was essentially based on the following issuances:* Executive Order 1035, Procedures and Guidelines for the Expeditious Acquisition by the

Govemment of Private Real Properties or Rights thereon for Infrastructure and OtherGovemment Development Projects. June 1985

* Executive Order 132, Procedures to be followed in the Acquisition of Private Property forPublic Use and Creating Appraisal Committee

* World Bank Operational Policy 4.12, Involuntary Resettlement. October 2001

Definition of Terms

In order to ensure that implementation of the policies and guidelines is unifiedthroughout the Project areas, certain terms commonly used in relation to these guidelines aredefined as follows:

* Project Affected Persons (PAPs) refer to any person or persons who would be identified,through a baseline census information collected for each of the Inventories implemented inrelation to a particular sub-project, to be affected by any of the following circumstances:

/ Acquisition or possession by the Project, in full or in part,permanent or temporary, of any title, right or interest over house/s,land/s (including but not limited to residential, agricultural andgrazing lands) and/or any other fixed/movable assets;

/ Acquisition or possession by the Project of crops (annual andperennial) and trees whether partially or in whole;

v' Whose business/livelihood is in part or as a whole affected by theProject.

* Land Acquisition refers to the process whereby a person or entity is compelled by apublic agency to alienate all or part of the land a person/entityowns or possesses, to the ownership and possession of thatagency for public purpose in return for a consideration.

* Replacement Cost refers to the value determined to be fair compensation for realproperty based on its productive potential, replacement cost ofhouses and structures (as reckoned on current fair market price of

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building materials and labor without depreciation or deductions forsalvaged building materials), and the market value of residentialland, crops, trees and other commodities.

* Resettlement refers to all measures taken to mitigate any and all adverseimpacts of the project on PAP's property and/or livelihoodincluding compensation, relocation and rehabilitation (whereapplicable).

* Relocation refers to the physical relocation of a PAP from his/her pre-projectplace of residence.

* Rehabilitation refers to compensatory measures provided under these guidelinesother than payment of the replacement costs of acquired oraffected assets.

* Compensation refers to payment in cash or in kind of the replacement costs of theacquired or affected assets.

Objective and Features of the Policy:The principal objective of this document is to ensure that all PAPs are compensated for

their losses and provided with assistance to improve, or at least maintain, their pre-Project livingstandards and income earning capacity.

The document lays down the principles and objectives, eligibility criteria of entitlements,legal and institutional framework, modes of compensation, people participation features andgrievance procedures that will guide the implementation of compensation for PAPs.

Principles and Objectives:

The principles outlined in the World Bank's Operational Policy 4.12 have been adopted inpreparing this document. In this regard, the following principles will govern Projectimplementation:

o Acquisition of land and other assets should be avoided, where feasible, andminimized as much as possible.

o All PAPs residing or cultivating land, working, doing business, or having rights ofownership or established possession along segments of lands to beutilized/traversed/improved/rehabilitated by the Project, as of the time of conductof the baseline surveys, are entitled to be provided with compensation sufficientto assist them to improve or at least maintain their pre-Project living standards,income earning capacity and production levels.

o Lack of legal rights to land will not bar the PAP from entitlement to suchcompensation or rehabilitation measures for assets lost.

o Replacement premise and agricultural land will be as close as possible to theland that was lost and is acceptable to the PAPs.

o All replacement land for agriculture, residential and business use will be providedwith secured tenure status and without any additional cost, taxes, andsurcharges to the PAPs at the time of transfer.

o Planning and implementation for acquisition of land and provision ofcompensation will be carried out in consultation with the PAPs, to ensure minimal

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disturbance and transparency in transactions between the Project implementersand PAPs.

o Entitlements will be provided to PAPs no later than one month prior to expectedstart-up of works at the respective subproject site. Construction work will not beinitiated until PAPs are compensated or adequately relocated.

o Financial and physical resources for compensation will be made available as andwhen required.

o Community infrastructure, which are affected must be restored or replaced.o Institutional arrangements should be in place to ensure the effective and timely

design, planning, consultation and implementation of the Inventories.o Effective and timely implementation supervision, monitoring and evaluation of

compensationaction plans must be carried out.

Entitlement Framework

The Project Management Offices of the Executing Agencies will work closely with LocalGovernment Units and other Project Partners in the implementation of this Policy Frameworkand Implementing Guidelines. The PMOs, with their Project partners, shall determine theappropriate compensation for PAPs in accordance with the following compensation scheme:

* PAPs losing more than 20% or all of their productive assets (agricultural land,house or business), or in cases when the remaining assets are not economicallyviable, are entitled to:

V full compensation at replacement cost of the entire asset or at directland/asset replacement and

/ rehabilitation assistance that allows them to enhance or at leastmaintain their standard of living.

* PAPs losing less than 20% of their productive assets, and where the remainingassets remain viable for continued use, are entitled to cash compensation atreplacement cost for the affected asset.

* Agricultural land will be replaced by:/ land of equal productive capacity, which is acceptable to the PAP; or$ full compensation at replacement cost, where land is not available.

• Commercial/residential land (or other real property) will be replaced by:V land of equal market value or business potential (as the case may be),

which is acceptable to the PAP; or/ full compensation at current market value, where suitable replacement

land is not available or at the informed request of the PAP.* Replacement of damaged or lost crops will be based on full market value for one

year's harvest and will be paid in cash.PAPs whose land is temporarily taken will be compensated at full replacementcost for their net loss of income and/or damaged assets, including a reasonableamount for opportunity cost/s.

* Appropriate transfer and subsistence allowances will be given during thetransition phase as part of the rehabilitation assistance package to allow PAPs toenhance or at least maintain their standards of living.

* Verification of titles and tax payments shall be undertaken before landreplacement or cash compensation.

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For PAPs Losing Residential Land and Structures

o The provision of replacement residential land (house site and garden) ofequivalent size, satisfactory to the PAP; and cash compensation reflecting fullreplacement cost of the structures, without depreciation;

o If the PAP so wishes and the portion of the land to be lost represents 20% or lessof the total area of the residential land area, and the remaining land is still aviable residential lot, cash compensation, at full replacement cost (market value),will be provided to the PAP;

o If after acquisition, the residential land and/or structure is insufficient to rebuildthe residential structure lost, then at the request of the PAP the entire residentialland and structure will be acquired at full replacement cost, without depreciation;and

o Tenants, who have leased a house for residential purposes will be provided witha cash grant of three months rental fee at the prevailing market rate in the area,and will be assisted in identifying alternative accommodation.

For PAPs Losing Agricultural Lands and/or Crops

o The general mechanism for compensation of lost agricultural land will be throughprovision of "land for land" arrangements of equal productive capacity,satisfactory to the PAP. However, if the PAP so wishes and the portion of theland to be lost represents 20% or less of the total area of the landholding, andthe remaining land is still a viable economic holding, cash compensation, at fullreplacement cost (market value), will be provided to the PAP;

o If more than 20% of a person's agricultural land is acquired and the remainingholding is not viable, then the Project will acquire the entire landholding andprovide compensation of the acquired land at direct land replacement;

o PAPs will be compensated for the loss of standing crops and fruit or industrialtrees at full (current) market price; and

o PAPs whose land is temporarily taken by the works under the Project will becompensated for their loss of income, standing crops and for the cost of soilrestoration and damaged infrastructure, including a reasonable amount foropportunity costVs.

o PAPs who will lose their income will be provided opportunities for alternativelivelihood, through skills and entrepreneurship training, job matching or businessdevelopment assistance.

For PAPS Losing Business

o The provision of alternative business site of equal size and accessibility tocustomers, satisfactory to the PAP;

o Cash compensation for lost business structure reflecting full replacement cost ofthe structures, without depreciation;

o Cash compensation for the loss of income and opportunity during the transitionperiod; and

o Cost of money in case of delays of one year or more in releasing payment.

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Other Cases

In cases where community infrastructure such as schools, churches, healthcenters, water sources, roads, or electrical and water supply connections aredamaged, the Project will ensure that these are restored or repaired as the casemay be, at no cost to the community.

Where PAPs lack the required minimum documentation of Tax Declaration Certificatesto establish facts of possession for lands to be purchased for Project infrastructure, 30 daypublic notices posted at barangay and municipal halls shall be allowed prior to the acceptanceof the person as PAP. If no competing claims/protests are received by the LGUs, notarizedcertifications attesting claims to such properties must be acknowledged by al least 5 adjoininglot owners, three officials of the Barangay Council, and noted by the Municipal Assessor, toentitle the PAP to compensation.

Voluntary Land Donations

In the rural areas where donations of lands for community use are generally practised,arrangements have to be made to ensure that the donation is indeed voluntarily given, that thedonor is the legitimate owner of such lands, and that the donor is fully informed of the nature ofthe sub-project and the implications of donating the property. Should the donor decide to donatethe property on a conditional basis, the terms and conditions for the temporary use (usufructrights) of the property must be clearly stated in the Conditional Deed of Donation document.

Under these situations, the following safeguards need to be applied, based on theirrelevance to the cases being encountered by sub-project proponents:

*: An assessment that the affected person does not suffer a substantial lossaffecting his/her economic viability as a result of the donation;

*: Certification from the LGUs and the proponents, that the land is free of claims orencroachments from any third party;

*: Deed of Donation to the Community Association or the LGU(barangay,municipality, province or regional ARMM) concerned, as witnessed by the LGUbarangay and municipal government officials, notarized by a registered Lawyer,with copies of donation papers furnished the Office of the Municipal Assessorand the Provincial Register of Deeds;

*: Declaration of Ownership with Waiver of Claims for Affected Assets;* Joint Affidavits of Two Adjoining Landowners or Barangay Officials (for

unregistered lands);*: Waiver of Rights/Quit Claim (for Plants, Trees,Houses, Structures claimed by

Tenants, Informal Settlers)*: Waiver of Rights/Quit Claim (With Sharing of Claim)

Additional details are provided in the following Compensation Matrix (Table 1).

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TABLE 1 Compensation Matrix

ASSET IMPACT PAP COMPENSATION ENTITLEMENT

Farmer/title . Cash compensation for affected landLess than 20% of holder at full replacement costland holding and the . Cash compensation equivalent toremaining land Tenant/lease market value of gross harvest of theremains affected land for one year or for theeconomically viable holder remaining period of tenancy/lease

agreement, whichever is greater.* Land for land replacement or

compensation in cash according toPAP's choice. Land for landreplacement will be in terms of anew parcel of land of equivalent size

Farmer/title and crop productivity with a securedArable land More than 20% of holder tenure status at a location

land holding lost OR acceptable to the PAP. Thewhere less than 20% replacement land shall be free ofof land holding lost taxes, registration & other costs.but remaining land . Rehabilitation assistancebecomes * Transfer/resettlement assistanceeconomically not * Cash compensation equivalent toviable Tenant/lease market value of gross harvest for

holder one year or for the remaining periodof tenancy/lease agreement,whichever is greater.

. Cash compensation equivalent to 6Agricultural months salaryworker * Assistance in getting alternative

employment* Cash compensation for affected land

Commercial Land used for Title holder/ at full market valueland business partially bus. man * Cash compensation equivalent to

affected, limited loss 5% of gross annual incomeRental/lease * Cash compensation equivalent toholder 10% of gross annual income.

. Land for land replacement orcompensation in cash according toPAP's choice. Land for landreplacement will be provided interms of a new parcel of land of

Land used for equivalent size and market potentialbusiness severely . with a secured tenure status at aaffected, remaining Title holder/ location acceptable to the PAP. Thearea insufficient for us. man land shall be free of taxes & othercontinued use transfer costs.

. Rehabilitation assistance

. Transfer/resettlement assistance

. Opportunity cost compensationequivalent to 10% of gross annualincome.

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ASSET IMPACT PAP COMPENSATION ENTITLEMENT

. Opportunity cost compensationRental/lease equivalent to 20% of gross annualholder income.

h Assistance in rental/lease ofalternative land/property

Less than 20% of Title holder * Cash compensation for affected landland holding affected at full replacement costand the remaining . Minimum cash compensationland remains viable Rental/lease equivalent to 10% of lease/rental feefor present use holder for the remaining period ofrental/lease agreement

. Land for land replacement orcompensation in cash according toPAP's choice. Land for landreplacement shall be of minimumplot of acceptable size under thezoning law/s or a plot of equivalentsize, whichever is larger, in a nearbyMore than 20% of resettlement area with adequateResidential land holding affected physical and social infrastructure

and other non- OR where less than Title holder systems as well as secured tenurecommercial 20% of land holding status. When the affected holding island affected but larger than the relocation plot, cash

becomes smaller compensation to cover thethan minimally difference in area/size should beaccepted under provided. Replacement land shallaccepted lawusnd/or be free of taxes, registration andzoning law/s and/or transfer costs.not viable fortrnfrcs.conotvialed ue * Rehabilitation assistance

c Transfer/resettlement assistance* Cash compensation equivalent to

20% of lease/rental fee for theRental/lease remaining period of rental/leaseholder agreement

. Assistance in rental/lease ofalternative land/property

* Cash compensation for affectedStructures Owner structure and other fixed assetsStructure partially a Full (cash) assistance in restoration

affected but the of the remaining structureremaining structure . Cash compensation for affectedremains viable for Rental/lease assetscontinued use holder a Disturbance compensation

equivalent to two months salary orrental whichever is greater

Entire structure * Cash compensation for entireaffected OR structure Owner structure and other fixed assetspartially affected but . Rehabilitation assistancethe remaining . Transfer/resettlement assistance

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ASSET CATEGORY PAP COMPENSATION ENTITLEMENT

structure is not viable * Cash compensation for affectedfor continued use assets

Rental/lease . Disturbance compensationholder equivalent to six months salary or

rental whichever is greater. Assistance in alternative rental

arrangements* Cash compensation for affected

Informal assetsdwellers . Disturbance compensation

equivalent to three months salary orrental whichever is greater

Crops affected by . Cash compensation at full marketStanding land acquisition or PAP value PLUS 5% premiumCrops temporary acquisition

or easement* Cash compensation based on type,

Trees Trees lost Title holder age and productive value of affectedtrees PLUS 10% premium

Temporary . Minimum cash compensationEasement acquisition or Title holder equivalent to 10% of the value of

easement affected assetTemporary or * Cash compensation equivalent to

Loss of permanent loss of one year income if the loss isbusiness, business, income or PAP permanentincome or employment (not * Cash compensation equivalent toemployment covered in previous one to six months income if the loss

categories) is temporary

Organization for Implementation:

The responsibility for implementing the policy and guidelines set forth in this document areas follows:

- The overall responsibility for the implementation and enforcement of the policy andguidelines under this document rests with the sub-project proponent and the LGUsunder which the target barangays are located.

- Guided by the proponents' institutional development staff, the municipal staff to beassigned to the rural electrification project, designated members of the BarangayCouncil, Community beneficiary representatives and an IP representative(if applicable)shall be responsible for preparing the asset inventories, the compensation plans, and thesupervision of action plans for land acquisition until all requirements have beencompleted. They shall comprise the Municipal or Rural Electric Cooperative's LandAcquisition Committee. The Committee shall ensure that the required consultation andparticipation of PAPs in the preparation and implementation of the land acquisitionactivities comply with the provisions of this policy framework and the framework forIndigenous Peoples. The Committee is terminated once the required documentation andcompensation of PAPs have been fully complied with.

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- Funds for implementing the inventories and land acquisition action plans will be providedby the sub-project Proponents based on budgetary requirements established byMunicipal and Barangay Committees in consultation with the PAPs.

- All arrangements and agreements under this document shall be subject to the reviewand concurrence of the Executing Agencies.

Public Consultation and Participation:

The PAPs will participate throughout the various stages of the LARR activities.

When the community has identified the exact location of the infrastructure and thetechnical requirements for site selection have been fulfilled, the PAPs will be fully informedabout the sub-projects and about the provisions of this Land Acquisition, Resettlement andRehabilitation Policy, in a meeting to be held by the respective community association with theirProject facilitators at the Barangay level.Negotiations can be made during this meeting(s), toensure that negative impacts to households are minimal, and that conditions for acquisition arefully understood by all parties involved. The meetings will cover:

- An orientation on the Decentralized Rural Electrification Project and itsComponents

- Subproject proposal, its benefits and possible negative impacts- Location of proposed infrastructure and transmission lines (if applicable)- Schedules of implementation- LARR policy and its implementation arrangements- Discussions on Compensation for Acquisition of Properties- Conditions and documentation requirements for Sale or Donation of specific

properties/assets to be affected- Grievance mechanisms and processes

Copies of the key information on the Project background, LARR policies andentitlements will be written in the dialect understood by PAPs and distributed among them,preferably before the public meeting.

A walk-thru of the alignments to determine the specific location of sub-projects on theground may be arranged by the sub-project Proponents, upon the request of PAPs. Fieldverification activities will be conducted with the technical design engineers present.

All consultation meetings and other activities shall be properly documented.

In the event that a subproject involves acquisition of land and other assets and results toother adverse impacts, the Executing Agencies' PMOs shall withold approval of the subprojectunless a compensation package or certifications of Waivers in accordance with this document,satisfactory to all concerned, is agreed upon between the LGU, the community association andthe owners/tenants of land/asset affected as well as those who stand to lose their crops, jobs orsources of income.

The determination of the compensation for each of the affected households can beobtained from the Provincial Appraisal Committee. If an owner is not satisfied with the ProvincialAppraisal Committee's assessment, an independent land appraiser should be consulted toprovide the basis for land valuation, at the expense of the owner.

The Executing Agencies' PMOs shall not allow any subproject construction work until thecompensation has been paid to PAPs, or the required documentation for Donations andWaivers/Quit Claims have been submitted by the sub-project proponent.

Implementation Procedures

Inventory and Entitlement

An inventory for each infrastructure to be constructed/rehabilitated will be prepared by theMunicipal/Rural Electric Cooperatives' Land Acquisition Committee.

The information to be obtained in the Inventory will include the following information for eachProject-Affected-Household.

- number of persons and names;- amount and area of all the residential plots lost;- amount, category/type and area of agricultural land lost;- quantity and types of crops and trees lost;- quantity and category of any fixed assets lost;- productive assets lost as a percentage of total productive assets; and

- temporary damage to productive assets.

Land Acquisition and Compensation Report (LACR)

The Land Acquisition and Compensation Report (LACR) will be required if less than 200PAPs will be affected by the subproject in terms of the need to acquire land and other assets.Further, the subproject shall not result in any displacement of families, and that remainingassets are still viable for continued use. It should reflect the inventory of affected persons andproperties, number of persons eligible for each entitlement or form of assistance as stated in thePolicy Framework, cost estimates and arrangements for consultation and participation. Theoutline for the LACR is presented in Affachment 1.

The LACR shall be submitted as an Attachment to the Sub-Project Proposal. Theimplementation shall be completed at least one month prior to commencement of anyconstruction/physical work.

If Indigenous Peoples are found among the target barangays, the provisions of theProject's IP Policy Framework and Procedural Guidelines on Free and Prior Informed Consentshall be adopted. Compensation shall follow this Policy, although certain terms and conditionsfor performance of cultural rituals and other culture sensitive practices prior to use of IP landsmust be followed.

Implementation Schedule

A detailed implementation schedule of the various activities to be undertaken will beincluded in each inventory and resettlement plan.

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Payment of compensation and provision of other entitlements (in cash or in-kind) shall besatisfactorily completed for each sub-project prior to the Executing Agencies award of contractfor civil works.

The same time requirement (one month) would apply if PAPs voluntarily contribute anypart of their land and/or assets for the sub-project.' That is, all deeds of donations and otherrelevant legal documents for each sub-project shall be satisfactorily completed prior to theWorld Bank (or Executing Agencies) giving of "no objection" for award of contract for civil works.

Supervision, Monitoring and Evaluation:

Implementation of the inventories and land acquisition action plans will be regularlysupervised and monitored by the respective Municipal/Rural Electric Coops' (RECs) LandAcquisition Committees. The findings will be recorded in the monthly reports to be submitted bysub-project proponents to the Executing Agencies' Field level offices.

Internal monitoring and supervision by the Proponents will constitute:

* Verification that the baseline information of all PAPs has been carried out andthat the valuation of assets lost or damaged, the provision of compensation andother entitlements, and relocation has been carried out in accordance with theprovisions of this LARR Policy, the respective inventory and land acquisitionaction plans.

* Verification and follow-up action to ensure that funds for implementing theinventory and land acquisition action plans are provided by the LGUs/RECs in atimely manner and in amounts sufficient for their purposes, and that such fundsare used by the Municipal/REC-based Committee in accordance with theprovisions of the respective inventory and resettlement plan.

* Record all grievances and their resolution and ensure that complaints are dealtwith in a timely manner.

The Executing Agencies will retain an external agency or agencies, as and whenneeded, to periodically carry out independent monitoring and evaluation of the implementationof the inventories and land acquisition action plans. The external agencies can be fromacademic or research institutions, non-governmental organizations (NGO) or independentconsulting firms, all with qualified and experienced staff and terms of reference acceptable tothe World Bank.

In addition to verifying the information submitted in the internal supervision andmonitoring reports of the Municipal/REC -based Committees, the external monitoring agencywill visit a sample of 20% of PAP households in each Province during construction work or otheroccasions as deemed necessary by the Executing Agency. The external monitor will:

It is common practice for people in the rural barangays to volunteer community use of small amounts of their landor assets without compensation. If this is the case, similar procedures of full consultation with village donors,complaint and grievance mechanism, and monitoring be established by each municipality to ensure that the landis donated of the person's own free will, that as a result of this act the person and his household are notadversely impacted, and that they can have an established recourse to voice their complaints. Detailedinventory and survey of land acquired should be undertaken. The donation should be covered by a deed ofdonation and other legally required documents.

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* Determine whether the procedures for PAPs orientation, consultation meetings,participation, relocation and delivery of compensation and other entitlements have beendone in accordance with this LARR Policy and the respective inventories andresettlement action plans;

* Assess if this document's objectives for the restoration of living standards and incomelevels of PAPs have been met;

* Gather qualitative indications of the social and economic impact of subprojectimplementation on the PAPs;

* Suggest modifications to the Executing Agencies PMOs on the implementationprocedures of the inventories and the land acquisition and action plans, as the case maybe, to achieve the principles and objectives of this document.

Costs and Budget

Each inventory and Land Acquisition Action Plans will include detailed costs ofacquisition, compensation and other entitlements, with a breakdown of replacement orrehabilitation costs for agricultural land, residential land, business land, houses, business andother assets, public facilities and services, and utilities. The cost estimates will make adequateprovisions for continuous consultation and information dissemination (production anddistribution of materials containing Project information and the LARR policy) and projectsupervision to be included for each sub-project package.

Complaints and GrievancesComplaints and grievances relating to any aspect of the resettlement entitlements and/or

activities, including the determined area and price of the lost assets, will be managed as follows:

* A Complaints and Grievance Committee (CGC) at the barangay level shall beestablished to hear the complaints and grievances of the PAPs regarding theacquisition of land and other assets, compensation, resettlement, rehabilitationand other entitlements. Members of the CGC shall include the BarangayCaptain, Barangay Secretary , a member of the Barangay Justice (LupongTagapamayapa) as well as formal and informal representatives of the IP or theaffected community.

* The complaint, grievance and appeal shall have the following levels:

V LEVEL 1 PAP addresses complaints and grievances to theBarangay CGC. The Committee will have to document its investigation ofthe facts presented and provide a written response to the PAP, withinfifteen (15) calendar days of receiving the complaint.

v/ LEVEL 2 If the PAP is not satisfied with the decision of theCommittee, the PAP may appeal the case to the Municipal Mayor's Officewithin fifteen (15) calendar days of receiving the written decision/s fromthe Barangay Complaints and Grievance Committee. The decision of theMunicipal Mayor, who will be assisted by designated staff from theMunicipal Assessors's Office, shall be rendered within thirty (30) calendardays of receipt of the PAP's appeal after validating the facts of thecomplaint.

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V LEVEL 3 If the PAP is not satisfied with the decision of the Municipal Mayor asrecommended by the Municipal Assessor's Office, the PAP may appealthe case to the nearest Area Office of the Executing Agencies.Thedecision of the Area Offices/RECs shall be rendered within thirty (30)calendar days of receipt of the PAP's appeal after validating the facts ofthe complaint.

* If the PAP is not satisfied with the decision of the Area Offices/RECs, the case maybe submitted to the head offices of the Executing Agencies' PMOs, with copies of thecomplaint furninshed the Provincial and Regional Offices of the NCIP (if the PAP isan IP) for consideration. The decision of the Executing Agencies shall be renderedwithin thirty (30) calendar days of receipt of the PAP's appeal.

* PAPs will be exempted from paying all administrative and legal fees.

Resorting to courts prior to availment of this complaint and grievance process will makethe appellant's action dismissible, on the ground of non-exhaustion of administrative remedies.

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2. Project Policy Framework on Indigenous Peoples

Framework Objectives:

The Framework and Procedural Guidelines seek to ensure that Indigenous Peoples areinformed, meaningfully consulted and mobilized to participate in the identification, planning,implementation and monitoring of sub-projects to be supported by the Rural Power Project'sDecentralization component. Their participation can provide them benefits with more certaintyand/or protect them from any potential adverse impacts of sub-projects to be financed by theProject.

Definitions:

"Indigenous Peoples" will be used to refer to cultural communities, tribal groups that canbe identified in particular geographical areas by the presence in varying degrees of the followingcharacteristics:

* a close attachment to their ancestral territories and the natural resources in theseareas;

* self-identification and identification by others as members of a distinct culturalgroup;

* an indigenous language, often different from the national language;* presence of customary social and political institutions; and,* primarily subsistence-oriented production.

Legal Framework:

The Policy Framework and Procedural Guidelines for Indigenous Peoples proposed forthe Project have been prepared within the context of the World Bank Operational Directive (#4.20), which instructs Bank-supported Projects to give protection to IPs with regards tomitigating possible adverse impacts of investments and requires the development of an IPAction Plan should Projects have potential adverse impacts on IP populations.

The Guidelines support the priority given to Indigenous Peoples by the GOP, embodiedforemost in the 1987 Constitution, which recognizes the rights of the IPs to their ancestraldomains and their power of dominion over their lands and resources. Among its pertinentprovisions are:

1) Section 17, Art. XIV: "customary laws governing property rights or relations shallbe applied in determining the ownership and extent of ancestral domains;and

2) Section 22, Art. II, Section 5, Art. XII: "...the rights of indigenous peoples tonatural resources pertaining to their lands shall be speciallysafeguarded..." These rights include the right of the IPs to participate inthe use, management and conservation of natural resources.

3) The right to stay in their territory and not be removed therefrom except whenrelocation is necessary as an exceptional measure, as in the case of anecological disaster or armed conflict. IPs have a right to return to theirterritories once the ground for relocation ceases.

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Another nationally legislated instrument protecting the rights of IP is the IndigenousPeoples Rights Act (IPRA or RA 8371), which state certain requirements in activities andprograms affecting Indigenous Peoples. Some relevant provisions include:

1) Chapter 1II, Section 7b: "...lPs have the right to an informed and intelligentparticipation in the formation and implementation of any project, government orprivate, that will impact on their ancestral domain...,

2) Chapter IV, Section 16: "...IPs have the right to participate in decision-making, inall matters which may affect their rights, lives and destinies, through proceduresdetermined by them as well as to maintain and develop their own indigenouspolitical structures..."

Specific to the Proposed Project area, the new ARMM Law, RA 9054, provides throughSec. 5, Article IlIl (Guiding Principles and Policies) that the "...regional government shall ensurethe development, protection and well-being of all indigenous tribal communities..." This newlaw, as well as pertinent provisions in the 1987 Constitution and in the IPRA, attempt to correctcenturies of oppression and marginalization of the indigenous populations in the country.

Additionally, the Philippines supported various international agreements and conventionsto protect the rights and culture of IPs, among them: Declaration on the Rights of PersonsBelonging to National or Ethnic, Religious and Linguistic Minorities; United Nations DraftUniversal Declaration on the Rights of Indigenous Peoples; and the 1996 International LabourConvention concerning Indigenous and Tribal People's in Independent Countries.

Guiding Principles:

The Rural Power Project shall ensure that poor communities of Indigenous Peoples aregiven priority in the consultation and decision-making processes, especially when sub-projectspose potential adverse impacts to them as a community. The Project must, with absolutecertainty, assure that IPs do not suffer adverse effects during and after project implementationas well as receive culturally compatible social and economic benefits.

The local Borrowers and the Project Implementing Units must ensure at all times thatdevelopment processes implemented by the Project foster full respect for the IndigenousPeoples' dignity, human rights and cultural uniqueness.

Consensus of all IP members affected must be determined in accordance with theirrespective laws and practices, free from any external manipulation, interference and coercion,and obtained after fully disclosing the intent and scope of the sub-project activity, in alanguage and process understandable to the community. The conduct of field-basedinvestigation and the process of obtaining the Free and Prior Informed Consent (FPIC) shalltake into consideration the primary and customary practices of consensus-building, and shallconform to Section 14 (Mandatory Activities for Free and Prior Informed Consent) of NCIPAdministrative Order No.3, series of 2002.

The Rural Power Project must ensure that none of its infrastructure or related projectswill damage non-replicable cultural property. In cases where sub-project infrastructure ortransmission lineswill pass through sites considered as cultural properties of the IPs, the Projectmust exert its best effort to relocate or redesign the sub-projects, so that these sites can bepreserved and remain intact in situ.

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Project designs and implementation approaches must at all times be consistent with thetraditional and cultural practices of the IP grou'p in the area (like performance of certain rituals ifsprings or rivers found in ancestral domains are utilized as sources of renewable energy).

Operational Strategies:a) Technical Assistance For IP Communities

The IPs/Cultural Communities in proponent barangays shall participate in the socialvalidation, identification of facility locations and planning for sub-projects located within theirbarangay or ancestral domains. In barangays where IPs are not dominant and/or where thecommunities fall within the ancestral domains of IPs, the Project shall ensure that sub-project proponents provide Technical Assistance to enable the IPs to participatemeaningfully in the planning process.This may mean deployment of competent andcommitted Project partners who can work with IP communities and ensure that IPs fullyunderstand, accept and support the implementation of the proposed electrification project.

b) Use of Appropriate Communication Media, Strategies and Tactics for MobilizationPresentation meetings must be conducted in the local or native language. In addition,facilitators must use simple and uncomplicated process flows during these sessions.

c) Strong Adherence by local Rural Power Fund Borrowers and other Implementing Units forDocumentation of Interactions with IP Communities and Compliance to Agreements Made

Project implementers must adhere to the requirements for documentation of meetingsconducted with IP communities, especially those which pertain to acquisition by sub-project proponents of the Free and Prior Informed Consent. The Executing Agencies,together with the Provincial, municipal and barangay LGUs shall not proceed with sub-project endorsements or appraisal processes, unless the corresponding documentationof meetings with the IP communities are attached to the sub-project proposals submittedfor endorsementlreview/approval.

e) IP Participation in Development, Monitoring and Evaluation of Mitigation MeasuresWhere sub-projects pose potential adverse impacts on the environment and the socio-economic-cultural-political lives of these IP communities, IPs must be informed of suchimpacts and their rights to compensation.Compensation for land and other assets to beacquired will follow the Project's Policy Framework on Land Acquisition, Resettlementand Rehabilitation.Should IPs grant their approval for such sub-projects with adverse impacts, affected IPcommunities must be part and parcel of the development of mitigation measures. TheExecuting Agencies must ensure that action plans are drawn to be able to monitor andevaluate the implementation of such mitigation measures and compensationagreements, with the active involvement of affected communities of IPs.

Coordination, Supervision and Monitoring:

To ensure compliance by concerned Project stakeholders to the guidelines set forth jnthis Policy Framework, the following mechanisms and processes will be followed during Projectimplementation:

1. The Development Bank of the Philippines and the Land Bank will facilitate the deliberateinclusion of IP representatives and the relevant staff from the National Commission ofIndigenous Peoples(NCIP) to the various levels of Project decision-making units of theRural Power Project. The two executing agencies shall establish institutional linkages

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with NCIP by entering into a Memo of Agreement with the NCIP. The MOA will enablethe NCIP Regional, Provincial and Service Center Offices to designate specific staff whocan act as the Commission's Focal Persons for the Project. The staff assigned theresponsibility shall be expected to substantially contribute to the realization of theobjectives of the IP Policy Framework. Additionally, the staff should ensure thatcompliance by all concerned to the general principles and operational strategiescontained herein shall be enforced.

2. Sub-project proposal format will include screening for safeguard issues, including for theIP groups, and for special needs with regards to appropriate consultation, participation,implementation procedures and monitoring.

3. Supervision meetings/visits of project or subproject activities will be done periodically(frequency to be established during Project implementation) by the Executing Agenciesthrough their area representatives, who will involve the local IP representatives in thesemeetings/visits. Documentation of such visits/meetings must be furnished the nearestservice center of the NCIP, or its Provincial or Regional Office. The respective FocalPersons will monitor or help facilitate required follow-up actions to ensure that sub-projects benefit the IPs according to agreements, and that compensation or mitigationmeasures as documented are completed on time.

4. Supportive Monitoring will be done regularly, involving affected IP communities andNCIP representatives, with emphasis on the following concerns:

i. Verification as to whether the guiding principles for implementing subprojectswith IP groups or communities are followed (see previous section)

ii. Implementation review of subprojects in IP communities to determine whetherthese are being implemented as designed and approved;

iii. Documentation of all meetings, assemblies and other gatherings done during themonitoring period, with copies furnished the affected IP community, LGUconcerned at the barangay, municipal and provincial levels, NCIP Provincial andRegional offices, and the area offices of the LBP and DBP.

iv. Assess whether recommended solutions discussed during previous supportivemonitoring visits have been implemented as committed.

Complaints and Grievances

In the course of sub-project implementation, complaints or grievances from stakeholdersare inevitable. All such complaints must be discussed in the specific IP community or localitywhere the sub-project is implemented. The formal local leadership at the barangay, togetherwith the Tribal leaders of the affected areas, will be tasked to facilitate public hearings andnegotiations to resolve or provide redress to these complaints.

Where necessary, an outside arbiter, preferably from the NCIP/Off ices of the Northernand Southern Cultural Communities (ONCC or OSCC) will be asked to participate in thesediscussions and/or negotiations. Resolution of the conflicts should be encouraged at the lowestpossible, thru the facilitation of the Municipal and Community Tribal Councils. Again, thedocumentation of such meetings and interactions with affected IP households/communitiesmust be documented and distributed to relevant stakeholders. If conflicts of interests are notresolved at the lower levels, or if the IP communities disagree with the resolutions and all the

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possible options presented to them, they should be allowed to elevate such complaints first tothe Provincial Representative of either the NCIP/OSCC or the OMA, with copies furnished theFMO and the Office of the ARMM Governor.

Should the IP community still find the decisions rendered at the regional levelunacceptable, they can elevate the issue to the central level office of the National Commissionon Indigenous Peoples. The NCIP shall be tasked to coordinate with the LBP/DBP PMOs toensure that the issue is resolved to the best interest of the affected IP community.

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Land Acquisition, Resettlement and Rehabilitation Policy Framework

ATTACHMENTS

Attachment 1

Land Acquisition and Compensation Report(The report should include the following information)

1. Description of the Project

1.1 State the performance objective of the project inclusive of time(schedule) and cost

1.2 State lead implementing agency and other involved institutions1.3 Describe why land acquisition is necessary

2. Census and Socio-Economic Survey Results

2.1 Describe cultural and demographic characteristics of PAPs2.2 Describe living conditions of PAPs and how project impacts on them2.3 Describe magnitude of displacementlextent of impact

2.3.1 Identify all losses2.3.2 Identify fixed assets

2.4 Provide information on the resource base of the PAPs, including incomederived from informal sector and non-formal activities and from commonproperty

2.5 Identify groups vulnerable to risks of impoverishment (if applicable)2.6 Identify formal and informal institutions that can assist in designing and

implementing the Land Acquisition Action Plan2.7 Provide basis for determining eligibility criteria2.8 Provide basis for estimating acquisition/resettlement costs2.9 Establish baseline for monitoring and evaluation

3. Project Affected Persons' Participation

3.1 Planning3.1.1 Census taking and socio-economic survey3.1.2 Disseminating information to PAPs3.1.3 Identifying ways to minimize impacts3.1.4 Selecting sites or replacement land3.1.5 Choosing entitlement options

3.2 Implementation

4.2.1 Participating in project-related operations, where qualified4.2.2 Participating in the delivery of land acquisition entitlements4.2.3 Participating in establishing grievance mechanisms4.2.4 Participating in mediation and grievance activities

4.2.5 Participating in monitoring land acquisition and compensationimplementation

4. Compensation Policy and Entitlement Criteria

4.1 Describe elements of compensation policy: objectives and entitlementcriteria

4.2 State compensation entitlement for each category of PAPs4.3 Identify other assistance (transport allowance, rehabilitation assistance)

5. Land Acquisition Financing and Budget

5.1 Describe sources of funds and the flow of funds5.2 Specify year-wise and item-wise cost estimates of all land acquisition

activities5.3 Ensure that all costs associated with the implementation of land

acquisition is part of overall project budget and included in annualinvestment plans (if applicable)

5.4 Provide physical and price contingency measures5.5 Provide training plan for land acquisition and compensation committees5.6 Provide operational resources for LACC activities

6. Implementation Timetable

6.1 Prepare time schedule for each activity covering initial baseline andpreparation, actual relocation and post relocation of all physical, socialand economic activities

6.2 Describe detailed action plan for implementation including identification ofresponsible persons and organizational units per activity

6.3 Provide monthly implementation schedule (with start and completiondates)

6.4 Describe linkage between implementation of land acquisition andcompensation activities and initiation of civil works in the overall projectplan

6.5 Indicate provisions for affected people before demolition and relocationbegins

7. Organizational arrangements forLand Acquisition and Compensation(LAC)

7.1 Planning7.1.1 Identify main tasks and responsibilities in planning, negotiating,

consulting, approving, coordinating, implementing, financing,monitoring and evaluating major areas of the project

7.1.2 Review mandate of concerned stakeholders and their capacitiesto plan and manage the tasks; involve them in land acquisitionand compensation planning

For Rural Electric Cooperatives:7.1.3 Identify senior project officials (project manager) to head LAC

Unit7.1.4 Provide qualified staff for the established LAC unit

7.1.5 Provide training plan for the LAC staff7.1.6 Provide operational resources for LAC units

7.2 Implementation

7.2.1 Establish mechanism for the cooperation of allinstitutions/organizations concerned (firm up MOUs)

7.2.2 Identify, establish clear delineation of responsibilities7.2.3 Identify responsibility in the delivery of entitlements and services

8. Monitoring Management

8.1 Procedures for Internal Monitoring8.1.1 Establish inter-agency monitoring group or contract out with

independent agency8.1.2 Establish monitoring scope and methods8.1.3 Establish regular reporting process8.1.4 Establish mechanisms for follow-up8.1.5 Specify participation of PAP in M & E

9. Grievance and Arbitration Process

9.1 Establish criteria requirements:9.1.1 Describe/define when PAPs are to present grievances9.1.2 Establish grievance procedure9.1.3 Specify time limits9.1 .4 Formulate arbitration procedures9.1.5 Establish system for appeal and identify final decision maker

Rural Power Project

Name of Sub-Project: Attachment 2Province: Municipality: Barangay:

NMNO OCCUPION/ ESTIMATEDSRVEY HH ID NAEO HHa G E TNCT DCTO OUCCEATOF TOTAL

NUMBER NUMBER NAEOIHHaNAE SX EHIITCDCTO OURE OF INCOME PERINCOME YEAR

Attachment 3

Rural Power Project INDIVIDUAL INVENTORY, Affected Assets and Compensation Entitlements

Province: Municipality:

Barangay: Land Holding No.:

House No: No. of Persons in HH:_

Name of HH Head: Total Landholding:__

71 Title holder/owner Li Rent/Lease holder Li TenantLI Laborer L Informal Dweller Li Others

DESCRIPTION | CLASS/ TENURE STATUS 1 VALUE PhP/unit) . COMPENSATIONCATEGORY OWNED RENTED DECLARED MARKET NEGOTIATED TOTAL

LAN : ........... iq __________________ ________________... _________________ t.-jf"'LANp-~~~~~~~~~~~~~~~~~~~

Agricultural m_2

Non-agricultural mI2.~~~~~~~~~~ _ _ ___ ,>

Permanent m 2

Semi-permanent m 2

Temporary m 2m2

2

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~- _

halhal

___ _ _ __ __ ~~~~~~~~~~h__-- -5__w

DESCRIPTION CLASS/ TENURE STATUS UNIT OTY VALUE PhP/unit) COMPENSATION___________________ ~CATEGORY OWNED RENTED DECLARED MARKET NEGOTIATED TOTAL

Land _ _ _ _ _ _ _ m 2 _

Structure l 2

,.l~~AE 1 - = ! - -.

Economic Lossesexplain briefly and give lump sum estimate of losses in PhP)Business Loss (type of business and income loss)

Temporary LossOther Losses (explain briefly)

TOTALNOTE: Provide one copy of completed form to the PAPSKETCH (showing relative position of property to proposed sub-project

Note: In lieu of an individual sketch plan, a sketch of the entire land to be acquired may be provided indicating the location of all properties affected by the proposedstructure.The sketch shall be attached to the compilation of all individual PAP survey per sub-project.

Survey Conducted by: Attested: Conforme:

Brgy. Representative CommunityAssociation Rep. Municipal Representative Name and Signature of Head of HH

IP Representative (if applicable)

Attachment 4Rural Power Project Summary of Entitlements of Project Affected People

Province: Municipality: Barangay:

SURVEY NAME OF HH HEAD COMPENSATION FOR ASSETS TOTAL AMOUNTNO CATEGORY QTY UNIT PRICE ENTITLEMENT | _l

LAND

STRUCTURES

CROPS AND TREES

OTHERS

LAND

STRUCTURES

CROPS AND TREES

OTHERS

LAND

STRUCTURES

CROPS AND TREES

OTHERS

LAND

STRUCTURES

. CROPS AND TREES

OTHERS

LAND

STRUCTURES

CROPS AND TREES

OTHERS

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