The Kenya Power & Lighting

Co. Ltd.

POWER SECTOR RECOVERY PROJECT

ADDITIONAL FINANCING

REVISED Report

Resettlement Policy Framework

MARCH 19, 2008 /

EXECUTIVE SUMMARY

The distribution component of the Power Sector Recovery Project is designed to reduce losses in the distribution system, improve quality of electricity supply and increase access to electricity, and has the objectives outlined below:

(i)  Reduction of the non-technical losses at the annual rate of one percent through effective inspection, and targeted improvement in collection rates;

(ii)  Increasing access to electricity by accelerating connection rates and introducing a customer-friendly connection policy;

(iii)  Improving system reliability and performance by replacing obsolete protection gear, installing auto-reclosers and auto load-break switches and sectionalizers in the distribution system;

(iv)  Installing metering systems to segregate transmission and distribution losses.

The project will mainly involve the construction of new and rehabilitation of existing substations and power lines. There are different sizes of substations that will be constructed or upgraded. These substations will require different land sizes and equipment. The land sizes required are:

·  132/33 kV substation - 2 acres

·  66/11 kV substation - 1 acre (minimum 0.5 acre)

·  33/11 kV substation - 0.5 acres

The land required for the low voltage overhead power lines (i.e. 11KV, 33KV and 66KV) is 5 meters on each side from the center of the poles. When clearing of land is necessary then a width of about 20 meters is required. Land required for the high voltage lines (i.e. 132KV and 220KV) is 20 meters from the center of the line. However, there is no construction of a high voltage line in this project.

The total length of lines to be constructed is 150.3 kilometers. This translates to 15 hectares or 37 acres. Approximately 80% of this land comprises of road reserves and public utility land.

There is the likelihood that the identified route lines and substation sites lead to either the physical displacement of people, loss of their shelter, loss of assets, loss of income sources or means of livelihood, or restriction of access to economic resources. Therefore, OP 4.12 is triggered. However, some of the substation sites and power line routes have not yet been established. When KPLC eventually establishes this, land would be acquired or access to economic resources may be lost, denied or restricted and people may then be affected. At that stage, OP 4.12 calls for the preparation of individual Resettlement Action Plans that must be consistent with this RPF.

A major objective of this RPF is to ensure that affected individuals and households, and affected and/or displaced communities are meaningfully consulted, have participated in the planning process, are adequately compensated to the extent that at least their pre-displacement incomes have been restored and that the process has been a fair and transparent one. Though this document is to be disclosed separately, it is based on Volume I of the Environmental and Social Impact Assessment Report.

It is not envisaged that many sub-projects will require land acquisition, which will cause displacement and lead to the need to relocate and/or compensate affected people. Nevertheless, funds should be made available that will be used to cater for the few sub-projects that may require land acquisition and, therefore, compensation. Consequently an indicative resettlement budget has been included in the RPF to ensure that funds are allocated for compensation, should the need arise.

The main costs will involve the payments for entitlements, and the training of KPLC, municipality and other government staff in aspects of resettlement plan preparation, implementation and monitoring. In developing the costs, the estimates must be realistic enough of the prevailing prices of entitlements and other necessary items. It must also include an element of contingency (about 5%) to cater for any unforeseen expenses that may arise.

As the project is a government owned and managed program, land acquisition should be considered as being acquired in the public interest. That being the case al costs of the resettlement program will be borne by the government through the Ministry of Energy.


Table of Contents

`

EXECUTIVE SUMMARY i

1.0 INTRODUCTION 1

1.1 Purpose 1

1.2 Objectives of the Project 1

1.3 Description of the Proposed Component 1

1.3.1 Nairobi Area. 1

1.3.2 Coastal Area 3

1.3.3 Western Area 5

1.3.4 Mt Kenya Region 7

1.4 Components Involving Land Acquisition and Resettlement 8

1.4.1 Substations 9

1.4.2 Power Lines 9

1.4.3 KPLC Land Acquisition Procedure in the Past 9

1.5 Justification for Resettlement Policy Framework 10

1.6 Definition of Terms 11

2.0 POLICY FRAMEWORK 12

2.1 Principles and Objectives Governing Resettlement Preparation and Implementation 12

2.2 Process Description for Resettlement Plans Preparation and Approval 12

2.3 Estimated Population and Likely Categories of Affected Persons 15

2.4 Eligibility Criteria for Compensation 15

2.5 Legal Framework 17

2.5.1 Registration Systems 17

2.5.2 Ownership 18

2.6 Methods of Valuing Affected Assets 20

2.7 Organizational Procedures for the Delivery of Entitlements 26

2.7.1 Administrative Authorities 26

2.7.2 Activities Involved 26

2.7.3 Institutional Arrangements 27

2.8 The Implementation Process 28

2.9 Grievance Redress Mechanisms 28

2.10 Arrangements for Funding Resettlement and Compensation 29

2.11 Mechanisms for Consultations 29

2.12 Arrangements for Monitoring 30

2.13 Programming and Scheduling 28

2.14 Funding and Indicative Budget 28

Appendixes

iii

1.0 INTRODUCTION

1.1 Purpose

The purpose of this policy framework is to clarify resettlement principles, organizational arrangements, and design criteria to be applied to the Distribution Component of the Power Sector Recovery Project.

1.2 Objectives of the Project

The distribution component of the Power Sector Recovery Project is designed to reduce losses in the distribution system, improve quality of electricity supply and increase access to electricity, and has the objectives outlined below.

i)  Reduction of the non-technical losses at the annual rate of one percent through effective inspection, and targeted improvement in collection rates;

ii)  Increasing access to electricity by accelerating connection rates and introducing a customer-friendly connection policy;

iii)  Improving system reliability and performance by replacing obsolete protection gear, installing auto-reclosers and auto load-break switches and sectionalizers in the distribution system;

iv)  Installing metering systems to segregate transmission and distribution losses.

1.3 Description of the Proposed Component

KPLC’s Proposal has identified priority programs for the reinforcement and upgrade of the transmission and distribution systems. These are grouped as follows:

1.3.1 Nairobi Area.

Table 1: Description of Proposed Component in Nairobi

Group / New Line Routes & Substation Sites / Distribution Systems Reinforcement and Upgrade
Location / Description / Location / Description
1 / Nairobi North / - Construction of 75 km of 66 kV new line route from Nairobi North
- Construction of 12.5 km of new lines / Nairobi North / Reinforcement of 11 kV feeders through reconductoring a total of 57 km existing lines
Athi River Quarries / Installing one (1). New 66/11 kV substation / Nairobi South / Reinforcement of substation by replacing 35 panel 11 kV switchboard, modifying existing 66 kV busbar arrangement and installing 12 new 66 kV switch gear units
Ngong Road / Installing one (1). New 66/11 kV substation / Ruaraka / Reinforcement of substation by replacing 31 panel 11 kV switchgear board.
Karen / Reinforcement and upgrade of 66/11 kV substation from 30 MVA to 46 MVA
2A / Westlands / Installing one (1). new 66/11 kV substation / Karen substation / Replacing fault thrower switch with 66 kV circuit breaker
Thika substation / Replacing fault thrower switch with 66 kV circuit breaker
Limuru substation / Replacing fault thrower switch with 66 kV circuit breaker
Gigiri / Installing one (1). new 66/11 kV substation / Athi substation / Replacing fault thrower switch with 66 kV circuit breaker
Airport substation - / Replacing fault thrower switch with 66 kV circuit breaker -
2B / Eastleigh Feeder from Parklands / Construct new 2.8 km 11 kV line and reconductor 3.1 km 11 kV / Jeevanjee / Upgrading 66/11 kV substation from 46 MVA to 90 MVA
Donholm / Replacement of 6 panel, 11 kV switchboard at Donholm switching station
Cathedral to Nairobi West / -Replacement of 3.7 km 66 kV cable
- Retrofit 11 kV metal clad, switchgear with SF6 circuit breakers
3 / Embakasi Substation / Installing static var compensators / All Areas / - Installation of energy meters on 11 kV and 33 kV distribution feeders
- Replacement of 5,000 electromechanical 3 phase energy meters with electronic ones
- Installation of Disaster Recovery Server
- Replacement of 33 kV oil circuit breakers with SF6 units
4 / All areas / - Upgrade the SCADA system and replace related old and obsolete equipment
- Carry out reinforcement of the Low Voltage Network by reconductoring and installing additional distribution transformers as required for the rationalization of the network supply coverage
All areas / Replace existing 11kV metalclad indoor oil circuit breakers (35 incomers, 17 bussections, 142 feeders and 93 metering) with more reliable vacuum or SF6 units
5 / Kirinyaga Rd/Ngara Area / Establishment of one (1). New 66/11 kV substation / Cathedral/Ruaraka / Refurbishment of substations
Gigiri/Dandora Areas / 25 km of new 11 kV overhead lines / Athi River Substation / Replacement of 13 panel 11 kV switchboard
Gigiri/Outering Rd/Msa Rd/Dandora/Kariobangi & City Centre / Reconductor a total of 59km of 11kV overhead lines
Group Electrification Schemes / Construct 90km of MV and 276 kms of LV lines, install 12,925KVA transformation capacity / Nairobi Region / Extend the MV and LV network in order to connect about 12,795 new customers

1.3.2 Coastal Area

Table 2: Description of Proposed Component in Coast Region

Group / New Line Routes & Substation Sites / Distribution Systems Reinforcement and Upgrade
Location / Description / Location / Description
1 / Kanamai/Watamu / Installation of new 33/11 kV substations (1 x 7.5MVA)
Construct 6km of 33kV overhead lines / Likoni / Reinforcement and upgrading the 33/11 kV substation from 8MVA to 15 MVA.
Island / Installing one (1). New 33/11 kV substation (1 x 23MVA) / New Bamburi / Upgrading 1 No. 132/33kV substation from 45MVA to 68MVA
Kenya Petroleum Refineries (KPR) / Installing of 2 x 33kV circuit breakers
Installing of 1 x 7.5MVA 33/11kV transformer / KPR / Replacing obsolete 7-panel 11 kV switchboard
2A
/ Mariakani / Installing one (1). new 7.5MVA 33/11 kV substation / Kipevu / Replacing 33kV switchgear with an indoor 34 panel switchboard.
Diani / Upgrade33/11kV substation from 15MVA to 23MVA
2B / Voi / Upgrading 132/33 kV substation from 5MVA to 10 MVA
3 / Rabai Substation / Installing static var compensators / All Areas / - Installation of energy meters on 11 kV and 33 kV distribution feeders
- Replacement of 5,000 electromechanical 3 phase energy meters with electronic ones
- Installation of Disaster - Recovery Server
Replacement of 33 kV oil circuit breakers with SF6 units
Kiembeni / Installing a new 33/11kV substation / Reconductor a total of 8km 33kV line to 300AAA conductor
Galu / Upgrade 33/11kV to 1 x 1.75MVA
4 / All Areas / - Upgrade the SCADA system and replace related old and obsolete equipment
- Carry out reinforcement of the Low Voltage Network by reconductoring and installing additional distribution transformers as required for the rationalization of the network supply coverage
All Areas / Replace existing 11kV metalclad indoor oil circuit breakers (35 incomers, 17 bussections, 142 feeders and 93 metering) with more reliable vacuum or SF6 units
5 / Malindi / Reconductor 15km overhead line feeders
Bamburi / Reconductor 6km overhead line feeders
Kwale / Construction of 3km of 11kV overhead lines / Kwale / Reconductor 10km overhead line feeders
Shanzu / Uprate 33/11 kV substation by replacing the existing transformer with 2 x 23MVA units
Kipevu / Uprate 33/11 kV substation by replacing the existing transformer with 2 x 23MVA units
Miritini / - Uprate 33/11 kV substation by replacing the existing transformer with 7.5MVA unit
- Replace 3 obsolete auto recloser units
Group Electrification Schemes / Construct 4km of MV and 31kms of LV lines, install 1,540 KVA transformation capacity / Coast Region / Extend the MV and LV network in order to connect about 1,067 new customers

1.3.3 Western Area

Table 3: Description of Proposed Component in Western Region

Group / New Line Routes & Substation Sites / Distribution Systems Reinforcement and Upgrade
Location / Description / Location / Description
2B / Naivasha & Lanet / Rehabilitate the substations by installing 8 No. 132kV circuit breakers (4 No. each station)
3 / Butere / Establish a new 2.5MVA, 33/11kV substation
Construct 10km of 33kv overhead lines / All Areas / - Installation of energy meters on 11 kV and 33 kV distribution feeders
- Replacement of 5,000 electromechanical 3 phase energy meters with electronic ones
- Installation of Disaster - Recovery Server
Replacement of 33 kV oil circuit breakers with SF6 units
Lessos / - Uprate 132/33kV substation by replacing existing unit with 23MVA unit and installing additional
23MVA unit
4 / All Areas / - Upgrade the SCADA system and replace related old and obsolete equipment
- Carry out reinforcement of the Low Voltage Network by reconductoring and installing additional distribution transformers as required for the rationalization of the network supply coverage
5 / All Areas / Replace existing 11kV metalclad indoor oil circuit breakers (35 incomers, 17 bussections, 142 feeders and 93 metering) with more reliable vacuum or SF6 units
Makutano / Establishment of a new 23MVA 132/33kV substation / Lessos / Uprate 33/11 kV substations by installing additional 2.5MVA transformer
Cherangani / Establishment of a new 2.5MVA 33/11kV substation / Sondu / Uprate 33/11 kV substations by installing additional 2.5MVA transformer
Nakuru, Naivasha, Kisii, Sondu, Bondo / Reconductoring 238km of 33kv overhead lines
Nakuru, Miwani, Naivasha, Njoro/Molo / Reconductoring 117km of 33kV overhead lines
Sondu, Cherangani, Eldama Ravine / Construction of 26km 33kV overhead lines / Replacing 22 No. unserviceable autoreclosers
Various substations / Install 34MVA, 11kV shunt capacitors
Group Electrification Schemes / Construct 58km of MV and 374 kms of LV lines, install 17,470KVA transformation capacity / Western Region / Extend the MV and LV network in order to connect about 16,773 new customers

1.3.4 Mt Kenya Region

Table 4: Description of Proposed Component in Mt. Kenya region