Quarterly Social Monitoring Report (1 st Submission)

2 x 100 MW CEBU POWER PLANT Quarterly Social Monitoring Report (1 st Submission) 2010.04 KEPCO SPC Power Corporation Construction Office

Table of Contents I. Social Monitoring Report (as of 31 March 2010) Attachments Attachment 1 Attachment 2 Photos of Payment to Landowners Affected by T/L Project Photos of Implementation of SDP & CSR Projects 1

I. INTRODUCTION A. Brief project description KEPCO SPC Power Corporation (KSPC) is undertaking the construction of a 2 x 100 megawatts (MW) clean coal-fired power plant project in Barangay Colon, City of Naga,Cebu. The project will be standing in a 10-hectare land leased for 25 years from National Power Corporation (NPC). The project involves 2 resettlement issues: a) in the leased property called Naga Land; and b) along the Transmission Line (T/L) Project. Prior to construction period, resettlement of some informal settlers families just outside the lease land have been carried out as a joint effort by Barangay Colon, the City of Naga,Cebu, NPC and KSPC. Out of 22 families, 17 families have accepted financial assistance provided and voluntarily moved their houses in the same vicinity outside the plant s perimeter fence. Five families claim to have legal titles and remain to be partially encroaching in the leased land. NPC filed a civil case for recovery of possession of the areas occupied by these 5 families. Meanwhile, a social analysis conducted by Transco, now National Grid Corporation of the Philippines (NGCP), concluded that the proposed 138 KV T/L Project require land acquisition and resettlement. The 0.90 kilometer transmission line from KSPC s Cebu Power Plant Project to the New Naga Substation will affect 11 landowners, 1 tenant, 13 structures owners and 10 relocateehouseholds. B. Institutional Arrangements (i) Key organizations involved in land acquisition and resettlement plan Implementation A Memorandum of Agreement (MOA) was executed and entered into by and between Barangay Colon, City of Naga, Cebu, NPC and KSPC for the necessary negotiations with the affected non- 2

titled/informal settlers families and secured the relocation site, which is just outside the leased land. The land acquisition and resettlement program for the transmission line is incorporated into the overall Land Acquisition and Resettlement Plan (LARP) implemented by NGCP as part of the new Naga substation project. (ii) NGOs and CBOs involvement in Resettlement Plan During the information campaign for the project, NGCP had encouraged non-government and/or community-based organizations to participate by voicing out their concerns about the project and providing the affected persons a non-partisan or impartial assessment of the project. So far, however, no NGOs and CBOs have been involved in the Resettlement Plan. (iii) Organizations Involved in Social Development Plan Implementation KSPC is implementing its Social Development Plan and Corporate Social Responsibility (SDP & CSR) Program in consultation and in coordination with the host communities and stakeholder beneficiaries, namely the residents thru their barangay officials, Local Government Units, academe and concerned government agency and sectoral group. Specifically, for the activities under health with the barangays and LGU s Rural Health Unit; for education with the Department of Education officials; for environment with the LGU s Agriculture Office and DENR/CENRO; and for livelihood, with the LGU s Skills Training Development Center, among others. II. LAND ACQUISITION AND INVOLUNTARY RESETTLEMENT NAGA LAND A. Progress on Cases Filed in Court related to the Naga Land Out of the 5 families, only 3 families remained in the case after the other 2 families were already declared in default. The presentation of evidence by NPC has already been completed and the 3

4 defendants are expected to present their evidence at the next scheduled hearing on June 4, 2010. Aside from expediting the proceedings in the court, the possibility of amicable settlement of the case (by way of financial assistance to the defendants), is still being looked into. Efforts towards this possible settlement will be initiated by KSPC legal group, in close coordination with NPC lawyers. B. Progress on Titling of Lands for 17 Resettlement Families The barangay officials are continuing their coordination with the Naga City Assessor s Office and other concerned government agencies for the transfer of ownership of the land to the barangay and then subdividing and donating this to the resettled families. A meeting is being arranged with the Department of Environment and Natural Resources to discuss the procedure for land titling. III. LAND ACQUISITION AND INVOLUNTARY RESETTLEMENT 138 kv T/L PROJECT A. Scope of involuntary resettlement impacts (i) Comparison of original and actual scope of land acquisition and resettlement for the Project T/L (ii) Verification of Affected People ( Revalidate list of affected landowners, tenants and structure owners along the Project T/L) (iii) Updating of Short RP (if required) and Disclosure to affected people Land acquisition and resettlement for the T/L Project was implemented in accordance with the prepared LARP. The people to be affected by the project are still the same ones identified in the LARP. B. Consultation Activities (i) Consultations on compensation standards and fees, relocation options, etc.

(ii) Status of Right of Way Negotiation (iii) Agreements with Affected People (append signed agreements if available) As part of its Agreement with KSPC, NGCP conducted right-of-way (ROW) negotiation with the affected landowners, social engineering for the structures, and the payment of compensation for the crops, plants and trees affected by the transmission line construction. For the ROW passing through private lands, landowners are paid at current fair market value. The initial standard rate used to calculate compensation was P389.00 per m 2. After negotiations with affected people and to reflect the latest Schedule of Unit Base Market Value for Residential, Commercial and Industrial Lands for the Municipality of Naga in Cebu, the rate was increased to P813 per m 2. While the land use is residential, NGCP adopted the valuation for industrial lands. The Affected Persons, except for 4 landowners, accepted the compensation offered as reached during the negotiations. At present, there are 4 expropriation cases against landowners who refused to sell their affected properties. A Deed of Absolute Sale between NGCP and the owner was executed for the acquisition of the affected lands, and crops, plants and trees while an Affidavit of Ownership/Waiver of Right/Quit Claim and Voluntary Undertaking was signed for the payment of relocation compensation, that includes replacement cost of house and disturbance compensation. C. Status of Compensation Payments and Assistance Delivery (i) (ii) (iii) Compensation Payments for land, standing crops and trees Compensation for structures Payment of Disturbance Compensation 5

(Note: The RP agreed with ADB requires that compensation and other monetary assistances be paid to all APs prior to commencement of civil works. This should be confirmed in the report) All the Affected Persons (except for 4 landowners involved in expropriation cases) already received compensation payments from KSPC on March 30, 2010. The total amount received for the payment of lands, houses, crops, plant, trees and structures affected reached a total amount of P4,969,655.37. Please see Attachment 1. D. Status of Resettlement and Rehabilitation Activities (i) (ii) (iii) (iv) Progress on Housing relocation and reconstruction Restoration of affected public infrastructure and facilities (if any) Restoration of land used for construction-related activities (if any) Implementation progress of income restoration activities Under the undertaking, the affected household shall dismantle and transfer his/her house within 30 days after receiving the relocation compensation. The project has not affected any public infrastructure and facilities or roadways. The Affected Households have not lost their source of income. Those who lost income opportunity during the relocation and reconstruction of their houses are provided disturbance compensation. E. Grievance Procedure (i) (ii) Grievances received and actions taken to address them Outstanding/Unresolved grievances There are no outstanding grievances. The only pending issue is the expropriation cases against 4 landowners. 6

IV. SOCIAL DEVELOPMENT PLAN A. Progress on Implementation of Livelihood and Community Development Programs for People Relocated from Naga Land and Project T/L As residents of Barangay Colon, the power plant s host community, including the people relocated from Naga Land and T/L Project are among those benefitted by the community outreach activities under KSPC s Social Development Plan and Corporate Social Responsibility (SDP & CSR) Program. KSPC, in coordination with the City of Naga s Skills Training Development Center and Department of Education, will conduct its first skills training program for the out-of- school youth in June 2010. B. Community Projects for Host Barangay C. Community Projects for Host LGU (Enumerate and Provide Updates on All other Components of the Social Development Plan) To date, KSPC had implemented various community development and outreach programs for the people of the barangays and City of Naga, Cebu. Among these are donations of equipment for the upgrading of barangay health center, donation of school signages for the public school, vitamins supplementation for day care and kindergarten pupils, medical mission, donation of educational materials to public schools, improvement of drainage project for the LGU and Operation Tuli (Circumcision). KSPC had also demonstrated itself as a strong partner of its host communities through sponsorship and financial support to their activities such as fiesta celebration and foundation day, among others. Please see Attachment 2. 7

Below is the list of major activities implemented under the SDP & CSR Program: 1 2 3 Name of Project Donation of equipment for the Upgrading of Brgy. Health Center Donation of School Signages Vitamins Supplementation 4 Medical Mission 5 6 7 Donation Of Educational Materials Improvement of Drainage System of Brgy. East Poblacion, City of Naga Operation Tuli" (Circumcision) Date 13-Jul- 09 20-Aug- 09 09-Oct- 09 27-Nov- 09 11-Jan- 10 01-Feb- 10 18-Apr- 10 Project Type Health, Sanitation and Nutrition Education Health, Sanitation and Nutrition Health, Sanitation and Nutrition Education Support to LGU's community programs Health, Sanitation and Nutrition Beneficiarie s/ Location Brgy. Colon Health Center NPC Colon Elementary School Day Care & Kinder pupils of Brgys. Colon, Tangke, North Poblacion NPC-Colon Elem. School Residents of Brgy. Colon, Tangke and North Poblacion NPC Colon Elementary School Brgy. East Poblacion thru the City of Naga 70 boys from Brgy. Colon and adjacent barangays Cost of Project in PhP 15,243.00 21,525.00 9,695.00 81,648.05 19,494.00 50,000.00 19,988.96 Details/Remarks Donation of a gooseneck lamp and a 3 c. Ft. Refrigerator to be used to examine pregnant women & store vaccines & other medicines Donation of school signage above the public school s gate along the road for easier location and identification of the school Each child was given 1 bottle of multivitamins to boost their system after the Deworming activity More than 400 indigent residents- mostly children and senior citizens, enjoyed the free medical check up and free medicines Each classroom of the Grades 4, 5 & 6 received English and Cebuano-English Dictionaries. Almanacs and other reference books were also donated for the school s library This was identified by the LGU as a priority project to solve the problem of flooding in the area The Operation Tuli was conducted in cooperation with the Rural Health Unit II of Naga 8

V. PROBLEMS AND FUTURE WORK PLAN A. Problems encountered and solutions provided B. Future work plan (staffing, training and work schedules) So far, no major problem has been encountered. All SDP and CSR activities are being carried out in coordination with the host communities and stakeholders from the planning stage up to actual implementation. 9

COMPENSATION PAYMENTS TO AFFECTED PERSONS OF T/L PROJECT March 30, 2010, NGCP Office, Naga, Cebu GEORGE ADLAWAN SHIRLEY FERNANDEZ JOSE ADAM ADLAWAN ANDRES BOOK ANTONIO LAPIZ BEINVENIDO CANTALEJO

VILMA SILVESTRE URBANO ADLAWAN FELIMON SASAN MARIA BALABA WILLIAM ADLAWAN

IMPLEMENTED SDP & CSR PROGRAM FY 2009-2010 Donation of equipment for Barangay Health Center Donation of School Signage Vitamins for Children Medical Mission Donation of Educational Materials Operation Tuli (Circumcision)