Environment Report 2011
Lal Pir Thermal Power Plant
ENVIRONMENT REPORT 2011
Page 222
Nishat Group 3Executive Summary 4
About Report 5Chairman’s Message 6
Statement of Business Leader 7Corporate Profile 8
Environmental Commitment 16
EHS Policy 17
Environmental Management 18
EHS Initiatives 27
Emergency preparedness & response 30
Stakeholders engagement / Feedback 33
Financial policies 34
Internal Auditing 36
Environmental Performance 37
2011 Milestones 38
Our Results 45Safety Statistics
46
Social Responsibility Program 51
Feedback Form 57
Contents
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NISHAT GROUP
Nishat Group is one of theleading and mostdiversified business groupsin South East Asia withfixed/ current assets ofover Rs.450 billion (US$ 5billion), it ranks amongstthe top five businesshouses of Pakistan. Thegroup has strong presencein four most importantbusiness sectors of theregion namely Power,Textiles, Cement and
Financial Services. In addition, the Group also hasreasonable market share in Insurance (Adamjee andSecurity General), Paper products (Nishat ShoaibaPaper Mills) and Aviation (Phonix Aviation). It also hasthe distinction of being one of the largest players in eachsector. The Group has a remarkable position in themarket as good as any multinationals operating locally interms of its quality of products, services andmanagement skill
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Executive Summary
Nishat Group owns two power plants at Lal Pir (Distt: Muzafargarh) named asLal Pir Power Ltd and Pak Gen Power Limited. Both plants are ISO 14001 &OSHA, 18001 certified and among the most efficient power plants in Pakistan,located near Muzaffargarh. Each unit is a 365 MW steam turbine, heavy fuel oil(HFO) fired electric generating unit. Steam is generated by a Forced CirculationRadiant Reheat type boiler. The boiler has the capacity to generate 1,200 tonsper hour of steam at a pressure of 176 kg/cm2 and a temperature of about541°C. Combustion gases originating from the combustion chamber of the boilerpass through an economizer and eventually discharge into the atmospherethrough a steel stack 150 m high. A continuous emission monitoring system(CEMS) has been installed at the stack to monitor the quality of stack gasesincluding CO, NOx, SO2, O2, and opacity. A flue gas desulfurization plant (FGD)with 85 to 90% efficiency has been provided for the removal of SO2 from theflue gases.
Lal Pir has developed and implemented an Environmental ManagementSystem which includes the Environmental Policy Statement, Planning &Implementation, Checking, Corrective Actions, and Management Review of theenvironmental performance of the organization.In addition to this Lal Pir is committed to fulfill the requirements of NEQS andWorld Bank for effluents and industrial gases emissions. Priority parametersare reported to EPA as per SMART (Self Monitoring and Reporting Tool)program on a monthly basis. Lal Pir strives to continually improve theenvironmental performance. We are challenged to not only meet or do betterthan environmental requirements imposed by Environment Protection Agency(EPA) and participating financial institutions, but to demonstrate continualenvironmental improvement while weighing the needs of our stakeholders.
The development and continuous improvement of environmentalmanagement system is part of Lal Pir commitment towards environmentalrequirements
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About Report
This report provides you with the information about the steps Lal Pir has taken forthe betterment of environment and the performance it has made for this cause. AllLal Pir employees contribute to achieving environmental goals, whether it is duringwork, at home or while traveling.
Commitment to Environmental Sustainability'We believe "Humans merely share the Earth. We can only protect the land, not
own it.''
Our mission statement clearly states that addressing the environment is part of theway we do our business. It is also the foundation for everything we do in relation tothe environment. We recognize that our activities, like all other activities on ourplanet, have an impact on the environment. We believe that we have theresponsibility to minimize and manage these impacts. This also helps us to be asuccessful company.
The report presents Lal Pir caring practices to create a better natural world wherehuman beings can live in harmony with nature. It includes our endeavors inconserving resources and effective waste management in our areas of operations.The report reflects our activities during 2011.
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Chairman’s Message
We continue to striveto be a better grouptoday than what wewere yesterday, forour clients, for ourshareholders, for ourinvestors, for theenvironment, for thecommunity and for ouremployees, for it iswith them that we
have achieved what we have. It is withthem that we will continue to surpassour past achievements.
Mian Mohammad Mansha
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Statement of Chief Executive Officer
Lal Pir Environmental Management System iscomer stone of Environmental ManagementSystem and establishes overall companyvision.
I have reviewed this EnvironmentalManagement System, and I am satisfied that itwill ensure:
Compliance with applicable laws andregulations
Conformance with Corp EnvironmentProtocol and other applicablerequirements
Achievement of the goals andenvironment policies.
I am personally committed to this Environmental Management System and willdemonstrate my commitment to the implementation of the company’s environmentpolicies and to continuous improvement. To the best of my knowledge, this businesshas the necessary resources to implement the Environmental Management System.
One decisive reason for developing EMS is to reflect our commitment and feelingthat the advantages of systematic work in the area of environment protection arequite important.
This Environment Management System is intended for our customers and suppliers,our employees, as well as the authorities and associations. I would like to inform youin this way of how the environment data have developed and our environmenttargets have been put into practice.
It is not only the impression we make on others that is important to us, but also thecontinual improvement process in matters of environmental protection.
Shahid Zulfiqar KhanChief Executive Officer
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CORPORATE PROFILE
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About Group Companies
Generation:
Nishat Group operates 4 power generation facilities in Pakistan and producing 1,150MW electricity. We are fighting to reduce country’s power crises.
Textiles:
Nishat Mills Limited, the flagship company of the group was established in 1951. Itsannual turnover for the year is over Rs.17 billion (US$ 283 million). NML with theproduction facility of 270,000 spindles, 740 looms and dyeing & printing capacity of 7million meters (7.65 million yards) makes Nishat the largest composite textile set up inPakistan
Cement:
D.G. Khan Cement Company Limited (DGKCC), a unit of Nishat group, is the largestcement-manufacturing unit in Pakistan with a production capacity of 5,500 tons clinkerper day. It has a countrywide distribution network and its products are preferred onprojects of national repute both locally and internationally due to the unparallel andconsistent quality. It is listed on all the Stock Exchanges of Pakistan.Furthermore, the Group has also set up a new cement production line of 6,700 TPDclinker near Kalar Kahar, Distt. Chakwal, the single largest production line in the country.
Financial Services:
Muslim Commercial Bank (MCB) is one of the leading banks with a deposit base ofabout Rs.230 billion (US$ 3.8 billion). MCB with more than 1200 branches country wideis the largest private bank of Pakistan also operating Internationally. Since itsacquisition, the management has improved its financial performance and now it is one ofthe most profitable banks of the nation.MCB is also the first Pakistani bank to be enlisted at London Stock Exchange in October2006 after attracting US $700 million worth of demand for its US $ 150 million GDRissue.
Insurance
Adamjee Insurance Company Limited (AICL) was incorporated as a Public LimitedCompany on September 28, 1960 and is listed on all three stock exchanges of Pakistan.The Company is also registered with the Central Depository Company of PakistanLimited (CDC) and is involved in the business of general insurance.
The Company commenced operations with a Paid-up Capital of Rs. 2.5 million, whichhas grown phenomenally in the past 5 decades. As of 2011 the Paid-up Capital of theCompany is Rs. 1.022 billion, which is the highest amongst all the General Insurancecompanies in Pakistan. AICL enjoys a competitive edge in the insurance industry due toits strong assetbase, paid-up capital, substantial reserves, balanced portfolio mix andsteady growth in gross.
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Lal Pir Power Plants
LAL PIR Power Limited (Formally AES Lal Pir (Pvt) Ltd)
The Unit was set up under the New Energy Policy (March 1994) of theGovernment of Pakistan. Nichimen Japan was engaged to take turnkeyresponsibility for EPC Contractor. Unit has commercially operated sinceNovember 6, 1997.
PAK GEN Power Limited (Formally AES Pak Gen (Pvt) Co.)
The Unit was set up under the New Energy Policy (March 1994) of theGovernment of Pakistan. Nichimen Japan was engaged to take turnkeyresponsibility for EPC Contractor. The Unit has been commercially operationalSince February 1, 1998. It is the first ever Flue Gas Desulphurization (Scrubber)System in Pakistan.
Lal Pir & Pak Gen Customer: Water and Power Development Authority
MW Fuel COD/DA ContractExpiration Date Plants
362 Oil Nov-97 2028 1
MW Fuel COD/DA ContractExpiration Date Plants
365 Oil Feb-98 2028 1
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Vision
To become a world class business & consistency stay ahead of any leadingpower business in the world in everything we do.
Mission
To maximize returns & value for the stakeholders without compromising onsafety, environment, best practices and plant integrity.
We believe in responsible industry leadership, creating profitable growth in harmonywith environmental sustainability and good corporate citizenship.
Board of DirectorsMr. Mian Hassan Mansha (Chairman) Mr. Mark Nicholas Cutis
Mr. Shahid Zulfiqar Khan (CEO) Mr. Mahmood Akhtar
Mr. Khalid Qadeer Quraishi Mr. Aurangzeb Feroz
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Code Of Conduct
This Code of Business Conduct andEthics has been adopted by our Company.
It lays out the standards of conduct to
which we will all hold ourselves
accountable. The Code addresses thefollowing topics:
Compliance with All Laws, Rules, Regulations and this Code Conflicts of Interest and Corporate Opportunities Quality of Public Disclosures Protection and Proper Use of Company Assets Protection of Confidential Proprietary Information Insider Trading Fair Dealing Interacting With Government Compliance with Antitrust laws Environment, Health and Safety Respect for One Another Record Retention.
At times, this Code requires ethical conduct higher than that required by the law. Weare expected and required to conduct ourselves according to the language and spiritof this Code and seek to avoid even the appearance of improper behavior.Compliance with this Code must come before other business considerations. Evenwell-intentioned actions that violate the law or this Code may result in negativeconsequences for the Company and for the individuals involved.
The specific areas addressed in this Code are not new; Lal Pir people have alwaysbeen expected to comply with the specific legal areas set forth in this Code as suchcompliance is consistent with the Lal Pir values that all of us have been and areexpected to follow in our business relationships.
Set forth in this Code is a statement of the Lal Pir values that should serve as a guide forall of us in our continued efforts to comply with all applicable rules, regulations, laws andthis Code. While the standards set forth in this Code cover a wide range of businesspractices and procedures, this Code cannot and does not cover every issue or law thatmay arise, or every situation where ethical decisions must be made. The fact that a law,rule or regulation is not specifically covered by a section of this Code does not removethe requirement that all Lal Pir people are expected to comply with all laws, rules orregulations applicable to every business.
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OUR Values
Lal Pir Power was founded on the principle that strong businesses are built on trust,accountability and an environment that allows people to reach their full potential.Since our earliest days, our values have played a key role in making this principle areality throughout our company. They guide our actions and decisions, and are a keycomponent of the Lal Pir culture.
Every day, Lal Pir people are guided by a set of values to:
Put Safety First - We will always put safety first - for our people, contractors andcommunities.
Act With Integrity - We are honest, trustworthy and dependable. Integrity is at thecore of all we do, how we conduct ourselves and how we interact with one anotherand all of our stakeholders.
Honor Commitments - We honor our commitments to our customers, teammates,communities, owners, suppliers and partners, and we want our businesses, on thewhole, to make a positive contribution to society.
Strive For Excellence - We strive to be the best in all that we do and to perform atworld-class levels.
ave Fun Through Work - We work because work can be fun, fulfilling and exciting.We enjoy our work and appreciate the fun of being part of a team that is making adifference. And when it stops being that way, we will change what or how we dothings.
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OUR Commitment
Lal Pir strives to conductits business ethically,safely and with our manystakeholders' interests inmind.Lal Pir people and those performing work onour behalf are expected to adhere topertinent laws and regulations and tobehave ethically in all their businessrelations and decisions, includingcompliance with all policies, codes andprinciples. This strong sense of responsibilityis reflected in our approach to corporategovernance and our commitment tomaintaining a strong, objective Board. Itdrives our safety-first culture and ourinsistence on practical, effective safeguardsin our plants. It fuels our efforts to find energy
solutions that help preserve the environment. And it lends weight to our socialcommitment, as individuals serve their communities with the support of theirmanagement teams and innovative corporate programs.
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Growth Philosophy
At Nishat Group, we believe that the demand for reliable, affordable electric powerwill continue to grow in the coming years. We continue to increase our financialflexibility and credit quality, while strengthening our existing businesses to ensurethey have the ability and operational efficiency to serve this demand. In addition, weare constantly identifying and analyzing opportunities to invest in new opportunitieswhere we believe we can build successful businesses that serve their constituencieswell. Our strategic global approach to growth and our unsurpassed global footprintafford some unique advantages when it comes to growth prospects:
Greenfield development skills and regional market presence offer distinctiveopportunities for new capacity additions
Our substantial foundation of existing businesses offers exclusive opportunitiesfor expansion
Strong acquisition and restructuring skills group position well for futureprivatizations and acquisitions
Our market knowledge allows targeting of countries where regulatory andbusiness environments can provide attractive returns.
We are very selective about theopportunities we investigate toensure we manage our risks andmaintain geographic balance. Weseek not to plant flags but togrow successful businesses. Webelieve that lasting growth is theresult of making careful decisionsand firm commitments. In regionswhere we already operatesuccessful plants and distributionbusinesses, we are alert to
opportunities to expand our services. And we continually review emerging projectpossibilities created by government privatization plans, competitor retrenchments, ordemands for new generating capacity.
Nishat Group’s broad market knowledge enables us to consider a range ofopportunities and test for strategic and economic robustness, whether in mergersand acquisitions or greenfield development. Our stringent investment approvalprocess includes independent internal assessment, commercial and legal diligence,and high-level review of the key elements of each transaction. This approachcombines the flexibility of market-specific knowledge with the governance benefits ofsenior approvals to maximize the application of Our prudent investment criteria. Thebottom line: this disciplined development strategy means we pursue only the bestopportunities for the group.
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ENVIRONMENTALCOMMIT MENT
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ENVIRONMENTALMANAGEMENT
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EMS
Lal Pir / Pak Gen has developed and implemented an Environmental ManagementSystem which includes the Environmental Policy Statement, Planning &Implementation, Checking, Corrective Actions, and Management review of theenvironmental performance of the organization.
In addition to this Lal Pir / Pak Gen is committed to fulfill the requirements of NEQSand World Bank for effluents and industrial gases emissions. Priority parameters arereported to EPA as SMART (Self Monitoring and Reporting Tool) program on amonthly basis.
Monitoring & Controls
Implementation
EnvironmentalPolicy
Planning
ManagementCommitment
ManagementReview
Checking/Corrective Action
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Following online systems are present to monitor air emissions and effluents:
CEMS (Continuous Emission Monitoring System) to monitor the parametersof stack emissions
Online monitoring system to check the chemistry of discharge effluents.
The Operational Controls taken by Lal Pir are as follows:
NOX Emission Control Fugitive Emission Control Effluent Treatment Noise Management Program SO2 Emission Control
Flue Gas Desulphurization (FGD) System
At Lal Pir and Pak Gen units are High Sulphur Heavy Fuel Oil (HSFO) Fired PowerPlants. The range of Sulphur present in HSFO may vary between 2.5 to 3.5 %.During combustion of HSFO, sulphur which is present in the fuel is oxidizes to sulfurdioxide (SO2).
We makes every effort to fulfill itscommitment to meeting the country's energyneeds with minimal environmental impact onland, air and water. The generating units arefitted with Flue Gas Desulphurization (FGD)plant removing 90% of the sulphur dioxide(SO2) from emissions; by-products of theFGD processes (gypsum) are recycled byusing these in the cement industry.
We are the first and only power station inPakistan, which has a Flue GasDesulphurization (FGD) Plant. A hugeinvestment for the sake of environment.
Environmental Aspects
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Control MeasuresProcess/Activity Env.Aspect/Hazards Type of Hazard Impacts/Effects
Additional Controls
Emergency Land/ AirContaminationHydrazine
HandlingHydrazinespillage
ChemicalSkin Irritation,Vapor Poison,Corrosive, Toxic
Secondary Containment,Follow Chemicalhandling procedure
Emergency Land/ AirContaminationAmmonia
HandlingAmmoniaSpillage
ChemicalSkin Irritation,Vapor Poison,Toxic, Volatile
Secondary Containment,Follow Chemicalhandling procedure
EmergencyLandContamination/FireLube Oil System
Lube oilLeakage/Spillage Chemical/
Physical
Suffocation, HeatBurns, Slippery,Explosive
Secondary Containment,Follow Lube oil handlingprocedure
EmergencyRise inTemperature,Excessive NoiseUnit Operation Steam Leakage/
HeatPhysical Skin Burns
Inspection of Highenergy System
Emergency
LandContamination,Potential firehazard, AircontaminationHFO Handling HFO Leakage/
spillage
Chemical
Skin Irritation, SkinBurn, Inhalationproblem,Suffocation, Toxic
Follow HFO Handlingprocedure, SecondaryContainment, Avoidignition sources
Emergency Land/ AirContamination
Acid Handling Acid spillageChemical
Skin Irritation,Vapor Poison,Corrosive, Toxic
Eye washer, Proper tool,Connections and flexiblehose fitness, secondaryContainment, Spilltrolleys, Proper Training,Awareness of MSDS
Emergency LandContamination
Caustic Handling Caustic SpillageChemical Skin Irritation,
Poison, Toxic
Eye washer, Proper tool,Connections and flexiblehose fitness, secondaryContainment, Spilltrolleys, Proper Training,Awareness of MSDS
Emergency LandContamination
Flocculenthandling
FlocculentLeakage/Spillage Chemical/
Physical Slippery
Eye washer, Proper tool,Connections and flexiblehose fitness, secondaryContainment, Spilltrolleys, Proper Training,Awareness of MSDS
Process/Activity Env. Type of Hazard Impacts/Effects Control Measures
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Aspect/Hazards Additional Controls
Emergency Landcontamination
Coagulanthandling
Coagulantspillage /Leakage Physical Skin Irritation
Eye washer, Proper tool,Connections and flexiblehose fitness, secondaryContainment, Spilltrolleys, Proper Training,Awareness of MSDS
normal Air contamination,fire
Chemical/Physical
Suffocation, HeatBurns, eye sightdeterioration
Welding processRelease ofArgon gasfumes
Physical Injury, Eye injury
Use welding hood or dowelding in ventilatedarea. In confined space,arrange properventilation, rotation
Transformer oilHandling
oil Leakage/Spillage Emergency
LandContaminationPotential firehazard Aircontamination
Secondary Containment,Follow ChemicalHandling procedure
Emergency Close the sourcePPE
Chemical
Unauthorizedperson not allowed,Area should bebarricaded
CEM,sCalibration gases Gases Leakage
Physical Skin Burns
Gas leakage sensor,available and testedPPE, Proper training
EmergencyLandContaminationAir ContaminationChemicals
HandlingChemicalsspillage
Chemical
Skin Irritation,Vapor Poison,Corrosive,Toxic
Secondary Containment,Follow Chemicalhandling procedure
Emergency Material can felldownMaterial
Handling AccidentMaterial
It can hurt humanand damage theproperty
Qualified person havinglicense
Waste Management
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Lal Pir / Pak Gen has a documented waste management procedure defining thetypes of waste along with the responsibilities for collection and disposal.
Waste Minimization Initiatives
Waste Type Storage Handling / Plan
Paper Red Color dust bin Transferred to Scrap yard atdesignated place and thento outside.
General solid waste& Toner
Green color dust bin Transferred to Scrap yard atdesignated place and thento outside.
Metallic Waste Green color dust bin Transferred to Scrap yard atdesignated place and thento outside.
Cotton ragscontaining Oil orGrease
Yellow color dust bin Transferred to Scrap yard atdesignated place.
Used Oil In container Drain the container in HFOpump house oil pit and thentransfer it to HFO tank.
Soot Drums Transferred to Scrap yardand then to third partydisposal facility.
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Avoid buying over-packaged goods Buy products made from recycled materials (if practicable) Design products to minimize waste (reuse of scrap) Check to make sure that materials are not over-specified. Segregate waste for recycling to reduce waste disposal cost Maintain plant and equipment efficiently Avoid over heating of buildings (1 degree reduction in room temperatures can
reduce fuel bills by 10%) Only use lights when necessary.
Hazardous Waste Management
The Environmental Management Committee works with plant management forhazardous waste identification.
Following measures are taken to ensure environmentally safe handling anddisposal of hazardous waste:
Individuals moving wastes to temporary storage are trained for:o relevant waste characteristicso waste handling guidelineso appropriate spill control measures
Waste streams are segregated (e.g. municipal solid waste, scrap metal,wood, combustion products) appropriately
All containers used for the collection of hazardous wastes are structurallysound, properly sealed and chemically compatible with the material to bestored
Generation and disposal inventory of hazardous wastes is maintained Contracted hazardous waste offsite disposal facilities are audited for:
o compliance with applicable environmental laws and regulationso Acceptable environmental practices.
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This program applies to all contractors and sub-contractors performing work for LalPir. It describes the HSE management requirements for contracted work from therequisition of the work through to the contract closure and contractor evaluation. Itonly focuses on the HSE aspects of contracted work.
Pre-Qualification
Pre-Qualification process is to assess a contractor’s past HSE performanceand the quality of their safety management programs to determine if theyqualify to work for Lal Pir.
The contractor pre-qualification process will include:
Lal Pir Person shall provided ‘Contractor Pre-Qualification Questionnaire’ The contractors must submit the same with all the information requested in
the form The Team Leader of the concerned team or his nominee or a cross-functional
committee or Safety Manager assesses the filled questionnaire to determine ifthat contractor is qualified for the work
If there is insufficient information to complete the assessment or if LPquestions the information provided by the contractor, a field audit of thecontractor should be carried out
The field audit should include work observations, facility and interviews withkey personnel
The assessed ‘Contractor Pre-Qualification Questionnaire’ of contractors tobe sent to Safety Manager by concerned for record
A qualified contractor list must be developed and maintained by SafetyManager on ‘List of Qualified Contractors’
The contractor pre-qualification information should be updated annually.
Contract Administration
The successful bidder must demonstrate to the Contract Administrator and ProjectManager that they can meet the requirements of the tender/ RFP. LP willdemonstrate good judgment by only selecting contractors that:
Are pre-qualified Provide satisfactory safety information Meet the project’s safety expectations Are able to fulfill the requirements of the contract.
Final Evaluation
HSE Contractor Management
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Upon completion of the project, Project Manager has to complete a final evaluationof contractor’s safety performance on ‘Project Final Evaluation’. It is based on the‘Project Work Observation’ records and feedback from Contract Monitor. In theevaluation he has to make a recommendation as to whether or not, or under whatcircumstances, the contractor should be considered for future work.Audit
CSMP is audited annually by Lal Pir HSE internal auditors. Training is provided toensure that people involved in contract administration, project management andmonitoring have the knowledge and skills required to fulfill their responsibilities.Record of trainings is maintained by Safety Manager.
Records
Name Maintained By Retention PeriodPre-QualificationQuestionnaire
SafetyManager Two Years
List of QualifiedContractors
SafetyManager Updated Annually
Project HazardAssessment and SafetyPlan
ProjectManager
One year fromproject completiondate
Project Work Observation ProjectManager
One year fromproject completiondate
Project Final Evaluation ProjectManager
One year fromproject completiondate
HSE Training Attendance SafetyManager Three Years
Issues with Contractors
Following are the issues faced regarding contractors:
Unavailability of standards and well maintained equipments Unavailability of technical labor Lack of awareness on HSE matters.
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EHS Initiative
Outside trainings of employees resulting the level of understanding has beenincreased
Registration process for CDM of VVVFD installed at FDFs has been inprogress
Regular Safety and Environment training program Reporting to EPA as per SMART program (Self Monitoring and Reporting
Tool) Proper storage of soot Development and Implementation of environmental management system Development and Implementation of Safety Management System Development and Implementation of emergency response plan Special trainings on emergency response Celebrated plant wise Environment, Health & Safety week every year Celebration of World Environment Day Celebration of Safety Day Safety Hour of the Month Contractor Safety Management Outage Safety Management Monthly emergency response drills to create more awareness in handling
emergency situations Monthly emergency response meetings Monthly EHS Team meetings Plant evacuation drills Monthly best Near miss recognition Occupational Health Monitoring Construction of secondary containment for Fuel Oil Storage Tank Area Placement of Spill Kits at different locations Placement of New Colored Waste Collection Bins at different location for
effective waste segregation Installation of New Environment, Health & Safety Awareness Sign Boards
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Award ceremonies
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Newly Constructed Dyke Wall around Plant
Newly installed VVVF for FDFs
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Emergency Preparedness & Response
Objective
The purpose of this procedure is to facilitate and to organize individual’s actionsduring workplace emergencies and get Lal Pir people out of danger quickly andefficiently. A disorderly evacuation under emergency condition can lead toconfusion, injury and property damage.
Possible Situations
A wide variety of emergencies both man-made and natural may require a workplaceto be evacuated. These emergencies include but are not limited to fires, bombthreats, toxic material releases etc.
Purpose
The objective of the Emergency Preparedness and Response System is to:
1. Recognize and plan for appropriate responses to an emergency so that thesafety risks associated with the emergency may be prevented or mitigated
2. Train and prepare individuals working inside the installation so that they canrespond effectively in the following:o Potential Risk Assessmento Fire detection and Alarm Systemo System for Intervention and Actions to control any incidento Emergency Evacuation Procedure / Drills in order to meet the
emergency situations, like Bomb Threatening Message or Terror Act /Threat etc.
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Emergency Response Plan at a Glance
INCIDENT / ACCIDENTCATEGORY 0-3
Observer on SceneActivate AlarmInform CCRStart Local Action
Category0Emergency Response Team
Proceed to scene of incidentGive necessary assistance fire fightAct under Fire chiefAfter incident control report to CCRDo liaison with Incident Controller
CCRRespond to AlarmInform Fire Chief /Emer Team LeaderRush scene of incidentStart ground activity
Emergency Team Leader
Proceed to scene of incidentCommunicate on RadioFor minor incident, after it is clearAnnounce "ALL CLEAR "For major incident, assess situation
declare category 1-3Appoint himself as Incident Controller.Inform Plant ManagerCoordinate Emergency Response at
sceneSite CALL OUTAssign person to do Head CountMaintain regular contact with
Emergency Main Controller
Doctor , Maintenance Staff
Respond to CALL OUTCarry out specified tasksReport to Assembly Point
All Other Personnel
Make safe exit, Go to Assembly PointAssist as required
Plant Manager
Proceed to emergency control center (CCRCommunicate by using radioDeclare himself as Emergency Main Controller.Alert mutual aid partnersCheck call out responseSupport the on scene responseBrief the security servicesMaintain regular contacts with all the team involved in controlling the incident.Liaise with local authoritiesWhen incident is secure, announce "ALL CLEAR"Commence investigation of the incident
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Risk Assessment
RESPONSIBLEFUNCTION
PROCESS RELATED DOCUMENT
Safety CommitteeArea Team Leader
Identify the Hazards Workplace Hazard
Identification Job Hazard Analysis
Workplace Hazard IdentificationSheetJob Hazard Analysis Sheet
Safety CommitteeArea Team Leader
Estimate the Risk Workplace Hazard IdentificationSheetJob Hazard Analysis Sheet
Safety Committee Evaluate the significance of
RiskWorkplace Hazard IdentificationSheetJob Hazard Analysis Sheet
Area Team LeaderSafety CommitteePlant Manager
Identify, recommend, reviewand approve the controlmeasures
Engineering Controls Administrative Controls Personal protective equipment
Area Team Leader Implement the controlmeasures
Safety CommitteeArea Team Leader
Communicate the Risks
Safety Committee Review and update the RiskAssessment
Workplace Hazard IdentificationSheetJob Hazard Analysis Sheet
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Stakeholders Engagement/ Feedback
We believe in a business strategy that generates value while contributing tothe well being of the plant in general and communities living around inspecific.
Communication Strategy
Management ensures that communication takes place within the organizationregarding the effectiveness of its management system and employees are involvedin the development and review of policies / procedures and consulted when there arechanges that affect work place safety, health and environment.
Employee involvement on HSE matters is ensured through
EHS Team Risk Assessment process Training programs Monthly safety lectures Involvement in incident investigations Safety walks & talks Millstone recognition / celebrations Communication Meetings.
Stakeholders Engagement
HSE Report published in the Environment report 2011 to provide informationabout the environment and operational performance of Lal Pir to stakeholdersfor assessing their relationship with LP
The complaints are received through mail or by individuals and diverted toEMR for proper handling and corrective measures
The customers and stakeholders are provided full assistance to handleemergencies, which are beyond their control
Safety & environment lectures to stakeholders External Communications: written or electronic correspondence, telephone
conversations and oral discussions or meetings with anyone external to thecompany.
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Financial Policies
Basis of Preparation
These financial statements have been prepared in accordance with InternationalFinancial Reporting Standards (IFRS).
Accounting Convention
These financial statements have been prepared under the historical cost basis,except for the revaluation of financial instruments.
Property, Plant & Equipment
Property, plant and equipment are stated at cost less accumulated depreciation andaccumulated impairment losses, if any, except freehold land which are stated at cost.
Depreciation is charged to income applying the straight line method whereby cost ofan asset less its residual value is written off over its estimated useful life. Estimateduseful life of an asset is reviewed periodically taking into account commercial andtechnical obsolescence as well as normal wear and tear.
Depreciation on additions is charged for the full month in which the asset ispurchased and on deletion up to the month immediately preceding the deletion.
Profit and loss arising on disposal of assets is included in income in the period ofdisposal.
Stock of Fuel Oil
Fuel oil is valued at the lower of cost and net realizable value. Cost is determined onthe basis of first-in-first-out method.
Stores, Spares & Consumables
These are valued at the lower of cost and net realizable value. Cost is determined onthe basis of first-in-first-out method.
Trade & Receivables
Trade debts are recognized at original invoice amount less an allowance for anyuncollectible amounts. An estimate for doubtful debts is made when collection of thefull amount is no longer probable. Bad debts are written-off when identified.
Other receivables are recognized and carried at cost.
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Borrowing Costs
Borrowing cost is recognized as an expense in the period in which they are incurred.
Trade & Payables
Liabilities for trade and other payable are carried at cost which is fair value of theconsideration to be paid in future for goods and services received whether billed tothe Company or not.
Taxation
Profit of the Company is exempt from levy of income tax under clause 132 of Part Iand clause 15 of Part IV of the Second Schedule to the Income Tax Ordinance,2001. Therefore, no provision for income tax is required, except in respect of otherincome based on prudence. concept due to levy of tax by the income tax authorities.
Revenue
Revenue for energy and capacity invoices is recognized on accrual basis. Income isbased on the tariff under the PPA between the Company and WAPDA.
Other PPA related incomes and charges are recognized when invoiced. Interest andrental income is recognized on accrual basis.
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Internal Auditing
HSE Audits
Online Effluents & Emission monitoring
Monthly Environment & Safety Reports Generation
Monthly Plant Housekeeping Walk
Monthly Plant Cross Functional Audits
Monthly Audits by Leadership
Audits by HSE Committee
Weekly BBS Walks by Leadership
Annual Plant Audit by CEO
Environment, Health & Safety Week Celebration
Proper House keeping plans with in plant.
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ENVIRONMENTALPERFORMANCE
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2011 Milestones
Best Environmental reporting Award – 10 by ACCA WWF in Non-Listedcategory
Best Environmental Excellence Award - 11 by National Forum forEnvironment & Health
Short Listed for International Green Awards, UK Successfully carried out ISO 14001 & OHSAS 18001 recertification Audit
without any Non Conformance
Lal Pir and Pak Gen completed annual monthly outages without anyRecordable incident.
We belong from the school of thought that believes that reporting near misses isa proactive measure to prevent major accidents. We encourage our people toreport near misses freely, without any hesitation:
In 2011, our YTD NM figure stands at 893 which include more than a hundredrelated to environment.
The journey towards safety does not end at these achievements but in fact,we are carrying forward our commitment as every new day brings newchallenges along.
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Our Results
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
-
20
40
60
80
100
120
140
2004 2005 2006 2007 2008 2009 2010 2011
GWh
MMlb/yr
SOx Emissions
SOx Gross Gen
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
-
2
4
6
8
10
12
2004 2005 2006 2007 2008 2009 2010 2011
GWh
MMlb/yr
NOx Emissions
NOx Gross Gen
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
-
100,000
200,000
300,000
400,000
500,000
600,000
2005 2006 2007 2008 2009 2010 2011
GWh
lb/yr
PM Emissions
PM Gross Gen
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Safety Statistics
2009 2010 2011
Fatalities 0 0 0
Lal Pir employees LTAs 0 1 0
Contractors* LTAs 0 0 0
Recordable 1 1 10
First Aids 1 2 5
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Carbon Offset
The energy efficiency improvement initiative is one of the major steps taken upby the company in keeping with its commitment as a responsible corporatecitizen contributing towards sustainable development.
Cooling Tower Performance Improvement
At Lal Pir and Pak Gen, “Cooling Tower performance improvement through celladdition” was taken as a carbon offset project. The cooling tower has a large impacton plant heat rate and a bad heat rate requires more fuel burning resulting inincreased CO2 emissions. The project was registered as a CDM project under KyotoProtocol with UNFCCC.
The project activity has contributed to sustainable development in following manners:
Social well being Environmental well being Technological well being.
This CDM project will improve energy efficiency and ultimately reduce CO2emission.
Years Annual estimation of emissionreductions in tons of CO2
2008 9542.7
2009 9542.7
2010 9542.7
2011 9542.7
2012 9542.7
2013 9542.7
2014 9542.7
2015 9542.7
2016 9542.7
2017 9542.7Total estimatedreductions (tons of CO2)
95,427
Total number of creditsyears 10
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Mass Afforestation
We use “Biological Carbon Fixation”, i.e. planting enough trees to offset thecarbon emitted by plants over their lifetimes.
Lal Pir started Mass afforestation program on barren land around the plant byengaging local NGO and people to encourage community development:
1,170 acres so far to offset CO2 emissions Encouraging green economic to reduce pollution and trigger a process of
sustainable development Making marginal land cultivable to arrest loss of farmland to non-agricultural
use in Pakistan.`
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Operational Update
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Social ResponsibilityProgram
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SR Policy
Lal Pir Power Limited / Pak Gen Power Limited
Formally AES Lal Pir (PVT) Ltd / AES Pak Gen (PVT) Company
Lal Pir/Pak Gen takes its responsibilities to society seriously. We want to be perceived asa good neighbor within the communities where we are present, and to contribute toworthy causes wherever and whenever we can.
As part of this process, we have developed a policy that governs the way that we helpcharities. To this end, a Social Responsibility Committee (SRC) has been established withmembers representing each team/area. The committee meets regularly to makedecisions about which charities to support, discuss the ongoing projects and how best tohelp the surrounding community.
The Charity and Sponsorship Policy of Lal Pir/Pak Gen covers following areas:
Health:
a. Lal Pir/Pak Gen shall bear the running expenditures of ‘LP Clinic under SR Program’including but not limited to
1. Salaries of one male doctor, one female doctor, two attendants, one dispenser,one lab attendant and one gate keeper. The staff salaries would be discussed andrecommended by SRC and approved by SR Team Leader.
2. Medicines for general out door patients and special cases.3. Necessary medical instruments and supplies.4. Electricity supply bill and routine maintenance.
b. Lal Pir/Pak Gen shall arrange free medical camps round the year of different naturesas recommended by SR committee and approved by SR Team Leader. SR Committeewould schedule the camps for the next year during last meeting of current year.
c. Lal Pir/Pak Gen shall cater the individual needs regarding health issues; howeverthese cases must carry the recommendations from the doctor of ‘LP Clinic under SRProgram’.
Education:
a. Lal Pir/Pak Gen shall continue to enhance the literacy rate in the surrounding areas.SR committee shall discuss and recommend the construction/renovation of newschools and institutes on need basis and shall submit their proposals to SR TeamLeader for approval.
b. Lal Pir/Pak Gen shall support the Little Angels program for the kids of localcommunity. SR Committee shall keep the record of their performance that shall bethe only source of scholarship continuation.
c. Lal Pir/Pak Gen shall try to sponsor those parents within local community, preferablywithin Tehsil Kot Addu, who would like to get their children educated but couldn’t doso because of their financial condition. The sponsorship shall cover the school feesand expenses directly related to school like books, uniform etc. and shall be paid onlyagainst valid receipt. For this purpose, the parents will be encouraged by SRmembers who would visit local community & schools; hold meetings with them andtry to motivate the people to send their children to schools. Parents will be educated
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regarding benefits of education and how literacy can help to improve themselves aswell as improving literacy rate in the country. The selection of students would berecommended by the SR Committee and approved by SR Team Leader. Thecontinuation of sponsorship will strictly be dependent on children performance meansgetting marks above 50%, once admitted to schools.
d. Lal Pir/Pak Gen shall support\up-grade Vocational Training Institute, Mehmood Kot asbeing the donor of its complete building on as and when required basis. The supportparameters shall be discussed and recommended by SR Committee and approved bySR Team Leader.
e. Lal Pir/Pak Gen shall provide miscellaneous facilities in the surrounding schools likesheds for cycle stands, boundary wall, drinking water facility etc. on as and whenrequired basis. Any related case would be discussed in SR committee and approvedby SR Team Leader.
Environment
Lal Pir/Pak Gen shall increase plantation in the surrounding areas to reduceenvironmental pollution and CO2 in collaboration with well know third party.
Infrastructure
a. Lal Pir/Pak Gen shall build/upgrade the infrastructure in the surrounding communitylike roads, bridges, drinking water tanks etc. on as and when required basis.
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Education
Already Completed
Constructed Higher Secondary School Science Block Constructed a Vocational Training Institute (VTI) Constructed a state of the art school with TCF and facilitating its operation Adopted five schools from City District Government and operating them with
the help of an NGO “CARE Foundation” Established science lab facility in nearby High School Donated 10 school buildings for a population of 0.4 million Repaired and enhanced facilities for 10,000 students in 21 schools Technical training school & inter college building up-gradation in
Muzaffargarh.In Progress Working with CARE Foundation to improve education standard Sponsoring two students in LUMS for Engineering studies. Running a Little Angle Studies Program in for the kids of local community.
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Health
LP has constructed and is operating a clinic for basic health requirements ofsurrounding community comprising around 100 villages with a population of0.4 MM. 42,116 Patients were treated free of cost in 2011.
Free medicines are provided Enhanced the clinic infrastructure and constructed; A laboratory An emergency treatment room A general ward and a camp room Adopted a number of patients of TB, Asthma, Hepatitis and Epilepsy for
complete treatment Donated Diagnostic Centre at Dist. Hospital Muzaffargarh for about 2.0 million
population Organizing eye and campus for general treatment Provided Hepatitis vaccination of house maids and house boys Total camps in 2009 = 4 (2 Eye + 2 Medical) Total camps in 2010 = 5 (2 Eye + 3 Medical) Total camps in 2011 = 2 (1 Eye + 1 Skin)
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Electrified 28 villages surrounding the plant and provided infrastructure(transformers, poles and transmission lines through WAPDA distribution)
Construction of around 24 kilometers farm to market road 6 Bridges on Muzaffargarh canal and the drain; benefiting around 50 villages. Providing filtered water for the surrounding community Constructed 20 km gravel road in the surrounding village Construction of two model Villages
for Flood Effected People Construction & Repair of 50 houses
damaged due to flood A water filtration plant of 500
gallons per hour in the vicinity
Lal Pir took the initiative and built thefirst 10 family homes in SOS Village forabout 100 homeless children in Multan.
Infrastructure
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Feedback Form
Dear ReaderWhat do you think of this report? Your feedback will give us valuable input forfuture planning of activities and reporting. Please take a moment to completethe brief survey below and fax it back to us.
Thanks!
1. WHICH OF THE FOLLOWING SECTIONS DID YOU FIND THE BEST?
About Our, Values and Code of conduct
Environmental Commitment & Structure
Environmental Performance
Social Responsibility
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Driving excellence and continuous improvement, weintend to stay at the forefront of our industry.
... Lal Pir / Pak gen
For any further questions, commentsor ideas please contact;
EHS ManagerLal Pir Thermal Power Station, MehmoodKot, Muzaffargarh P.O.Box 89Contact: +92662300030Fax: +92662300260www.lalpir.com
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