Updated Resettlement and Compensation Plan

Project No. 39419-013 December 2010

Sri Lanka: Clean Energy and Access Improvement

Project

Prepared by the Ceylon Electricity Board for the Asian Development Bank.

This Resettlement and Compensation Plan is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. Your attention is directed to the “terms of use” section on ADB’s website. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area

DEMOCRATIC SOCIALIST REPUBLIC OF SRI LANKA

CEYLON ELECTRICITY BOARD

CLEAN ENERGY & ACCESS IMPROVEMENT PROJECT

ADB LOAN AGREEMENT NO: 2518 – SRI

UPDATED RESETTLEMENT AND COMPENSATION PLAN (After Detailed Design Stage)

ENVIRONMENT UNIT CEYLON ELECTRICITY BOARD COLOMBO SRI LANKA

Abbreviations

ADB - Asian Development Bank BoI - Board of Investment 0C - Celsius CEA - Central Environmental Authority CEB - Ceylon Electricity Board db(A) - A-Weighted sound measurement in decibels DS - Divisional Secretary EIA - Environmental Impact Assessment EPL - Environmental Protection License GIS - Gas Insulated Substation GN - Grama Niladhari GS - Grid Substation IEC - International Electrotechnical Commission IEE - Initial Environmental Examination IPP - Independent Power Producer km - kilometer kV - kilovolt LoI - Letter of Intent m - meter mm - millimeter MOH - Medical Officer of Health MVA - Megavolt Ampere MW - Megawatt NCRE - Non-Conventional Renewable Energy NGO - Non Government Organization NIRP - National Involuntary Resettlement Policy NEA - National Environment Act PAA - Project Approving Agency PAC - Project Approving Committee PSS/e - Power System Simulation REA - Rapid Environmental Assessment ROW - Right of Way SEA - Sustainable Energy Authority SLBC - Sri Lanka Broadcasting Corporation SPPA - Small Power Purchase Agreement SPP - Small Power Producer W - Watt

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Executive Summary

This Resettlement and Compensation Plan has been originally prepared in 2008. However, due to some delays (eg. environmental approval process under NEA was completed in 2010), it has been updated in 2010, after all the relevant approvals are obtained. This updated RP covers all the changes (including certain deviations to proposed line routes) made to the project between July 2008 Sep 2010. The updated RP covers the proposed Clean Energy and Access Improvement Project of Ceylon Electricity Board, Sri Lanka, which started implementation in year 2011.

The Project consists of three subprojects, namely (1) Construction of the new System Control Centre (2) Augmentation of four Grid Substations for the Absorption of Renewable Energy, Construction of one Grid Substation, and (3) Augmentation of Eight Grid Substations, Construction of Three New Grid Substations and Construction of Five New Transmission Lines. The Project is implemented with credit support from the Asian Development Bank. Subprojects 2 and 3 are expected to have certain environmental and social impacts, and Initial Environmental Examinations Reports have been prepared for these two subprojects. This resettlement and compensation plan covers both subprojects 2 and 3 and updated after finalization of line routes.

Collectively, subprojects 2 and 3 include the augmentation of a total of twelve Grid Substations (GSs), construction of four new GSs and the construction of five new transmission lines over new rights-of-way.

Augmentation of Fifteen GSs:1 All the twelve GSs to be augmented under this project would use land space available within the existing property owned by CEB at the respective locations. Apart from relocation or modification of CEB’s own buildings within each GSs, there will be no impacts on any land or buildings owned by members of public or other institutions. In certain GSs, shifting of the perimeter fence would be required, but would not use any land beyond CEB-owned property. Land filling would be required in some GSs to prepare the available space for the construction of the augmentation. Apart from attending to any unforeseen damages (such as possible damage to local roads during material transport) that may be caused during construction, there will be no relocation or compensation issues associated with GSs to be augmented.

Construction of Four New GSs:2 In the selection of lands for new GSs a number of optional sites have been reviewed for each GS. In order to minimize the resettlement impacts, always preference is given to the Government owned lands to avoid resettlement of private dwellings and impacts on land use. Also particular attentions is given to the convenience of access to a transmission corridor which will avoid passing through built up areas and / or areas with special environmental concerns. Accordingly lands to locate these GSs have already been earmarked, and they are owned by the government or government-owned institutions. Except for one unused building in one location, all the four blocks of land to locate the new GSs are unused and they are not in productive use either for living, commercial activity or for agriculture. Apart from unforeseen issues that may arise during construction, there are no relocation and compensation issues to be addressed at this stage of project planning and approval.

1 Balangoda, Nuwaraeliya, Seethawaka, Ukuwela, Ampara, Habarana, Horana, Kurunegala, Matara, Panadura, Valachchenai, Veyangoda 2 Mahiyangana, Maho, Pallekele, Naula

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Construction of Five New Transmission Lines:3 This Resettlement and Compensation plan first explains the process of selecting the new rights-of-way for transmission lines. Initially, a number of map based routing options were considered for each new transmission line, with the primary focus on avoiding / minimizing the impacts on human settlements / built up areas, forest and wild life reserves, places of cultural / historical importance, social infrastructure (eg. playgrounds, schools, hospitals etc.) and areas of high grown trees. Among them, the Resettlement and Compensation Plan presents three best optional routes for each corridor, and compares their impacts in terms of land use, human settlements and areas of special concerns (forest reserves). Then the selected option is presented along with an estimate of impacts. At the time of revising this plan, initially selected routes were further optimized to reduce social environmental impacts and all changes have been incorporated to this report. Typical impacts of new transmission corridors would be (a) loss of vegetation (b) land-use restrictions by way of limitations to building heights and height of trees (c) land-use restrictions at tower footings. CEB would not be purchasing the land along the new rights-of- way including the tower footings but would compensate the owners/users for the lost vegetation, but allow lower-height agricultural activities (such as paddy, tea, cinnamon) to continue. However, special cases would be considered and compensated accordingly. The plan then explains the process of public involvement in finalizing the transmission line corridor during the environmental evaluation conducted under the Sri Lanka Environmental Act. It explains the legal process for issuing notices to the public about the planned activity and lines to be drawn across their lands, the appeal procedure and the grievance redress mechanisms, and the role and responsibilities of CEB and other government institutions in the process. It also explains the process of evaluation of damages to vegetation and agriculture, at the inception as well and during construction. Finally the report explains the monitoring mechanism for compliance by CEB staff and contractors, to the conditions stipulated in the environmental approval and the provisions in this report.

As a result of careful selection of line routes that have been already identified and explained in this report, and the subsequent public consultation and the appeal procedure, this Clean Energy and Access Improvement Project, at this stage, is not expected to cause any involuntary relocation of persons from their dwellings. CEB would ensure that maximum efforts would be made to avoid involuntary relocation even if unforeseen constraints occur in the field during setting out of the lines and tower footings.

As such, this report focuses more on the aspects of compensation to land owners and users for lost vegetation and long-term restrictions on land-use along the line corridors to be established under this project.

This report follows the guidelines established by the Asian Development Bank for involuntary resettlement and compensation.

3 Habarana – Valachchenai 132kV Transmission Line, Puttalam – Maho 132kV Transmission Line, Ukuwela – Pallekele 132kV Transmission Line, Galle – Matara 132kV Transmission Line, Naula in and out Connection

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CONTENTS

1 INTRODUCTION 8 1.1 Small Power Producers using NCRE Sources 10 1.2 Constraints of CEB Grid to Absorb Renewable Energy 11

2 PROJECT SCOPE AND LAND USE 11 2.1 Summary Scope of the Project 11 2.2 Detailed Scope of Subproject 2 13 2.2.2 Augmentation of Existing Grid Substations 13 2.3 Detailed Scope of Subproject 3 15 2.3.1 Augmentation of Existing Grid Substations 15 2.3.2 New Grid Substations 16 2.3.3 New Transmission Lines 17 2.4 Land Use for the Project 18 2.4.1 New System Control Centre and Grid Substations to be Augmented 18 2.4.2 New Transmission Lines 20 2.5 Type of Project and the Category 26 2.6 Study Methodology, Scope and Limitations 27

3 MINIMISATION OF IMPACTS AND MITIGATORY MEASURES 28 3.1 Measures to Minimise Impacts 28 3.1.1 Grid Substations to be Augmented 28 3.1.2 New Grid Substations to be Established 28 3.1.3 Strategy to Minimise Impacts of New Transmission Lines 29 3.2 Optional Routes for Transmission Lines 29 3.3 Key Effects on Resettlement and Land Use 39 3.4 Mitigation of Impacts on Selected Routes 41

4 SOCIO ECONOMIC CONDITIONS IN PROJECT AREAS 42 4.1 Subproject 3 42 4.1.1 Socio-economic Conditions along Galle- Matara 132 kV Transmission Line 42 4.1.2 Socio-economic Conditions along Habarana-Valachchenai 132 kV Line 44 4.1.3 Socio-economic Conditions along Puttalam-Maho 132 kV Transmission Line 47 4.1.4 Socio-economic Conditions along Ukuwela-Pallekelle 132 kV Transmission Line 49 4.1.5 Socio-economic Conditions along 132 kV Transmission Line for Naula In and Out Connection 51

5 COMPLIANCE WITH POLICIES, LEGAL REQUIREMENTS AND PROCEDURES52 5.1 Sri Lanka Legal Requirements and Procedures 52 5.1.1 Environmental Acts and Regulations 52 5.1.2 Electricity Act and Regulations 52 5.1.3 Involuntary Resettlement Policy of Sri Lanka 52

4 5.1.4 Environmental Approval Procedure for Transmission Lines 53 5.2 ADB Policy on Involuntary Resettlement 53 5.2.1 ADB’s Involuntary Resettlement Policy 53 5.2.2 ADB’s Policy Elements Applicable to the Project 53

6 PUBLIC CONSULTATION AND INFORMATION DISCLOSURE 55 6.1 Grid Substations to be Augmented 55 6.2 Rights-of-Way of Transmission Lines 56 6.2.1 Preliminary Work Conducted 56 6.2.2 Sri Lanka Environmental Approval Process 56 6.2.3 Formal Notices and Route Confirmation 58

7 COMPENSATION, RELOCATION AND INCOME RESTORATION 59 7.1.1 Compensation Payments for Crop Damage 63 7.1.2 Land Use Restrictions 63 7.1.3 Impacts on Seasonal Agriculture 63 7.1.4 Temporary Access Roads 63 7.1.5 Relocation 64

8 IMPLEMENTATION SCHEDULE 64

9 INSTITUTIONAL FRAMEWORK, GRIEVANCE REDRESS AND MONITORING PLAN 65 9.1 Institutional Framework 65 9.2 Appeal Procedure to Address Grievances 67 9.2.1 Prior to Project Implementation 67 9.2.2 During Project Implementation 67 9.3 Monitoring Plan 68

5 LIST OF FIGURES

Figure 1.1 - CEB Existing Transmission System 2007 9

Figure 2.1 - Site of the Proposed GS in Mahiyangana 14

Figure 2.2 - Space Available for the Augmentation of GSs 19

Figure 2.3 - Proposed Route for the New Galle-Matara Transmission Line 21

Figure 1.3(a) - Revised Route for the New Galle-Matara Transmission Line 21

Figure 2.5 - Proposed Route for the Habarana-Valachchenai Line 22

Figure 1.5 (a) - Revised Route for the Habarana-Valachchenai Line 23

Figure 2.7 - Proposed Traverse of the Puttalam-Maho Line 24

Figure 2.8- Ukuwela-Pallekelle Line Trace 25

Figure 3.1 - Optional Routes for the Galle-Matara Transmission Corridor 30

Figure 3.2 - Alternative Routes for the Habarana - Valachchenai Transmission Corridor 32

Figure 3.3 - Optional Routes for the Transmission Corridor Between Puttalam and Maho 34

Figure 3.4 - Optional Routes for the Transmission Corridor Between Ukuwela and Pallekelle 36

LIST OF TABLES

Table 2.1 - Summary Scope of the Subproject 2 12

Table 2.2 - Summary Scope of the Subproject 3 13

Table 2.4 - Land Use in the Galle-Matara Line Corridor 21

Table 2.5 - Land Use Along the Habarana-Valachchenai Line Route 23

Table 2.6 - Land-use Along the Puttalam-Maho Line Corridor 24

Table 2.7- Land Use along Ukuwela-Pallekelle Line 25

Table 3.1 - Land-use Pattern Along the Three Optional Routes for Galle-Matara 30

Table 3.2 - Land-use Pattern Along the Three Optional Routes for Habarana-Valachchenai 32

6 Table 3.3 - Land-use Pattern Along the Three Optional Routes for Puttalam–Maho 34

Table 3.5 - Land-use Pattern Along the Three Optional Routes for Ukuwela-Pallekelle 37

Table 3.6 - Land Acquisition and Affected Households 40

Table 4.6 - Agricultural Activities in Galle-Matara Districts 43

Table 4.7 - Socio-economic Conditions in Galle and Matara 44

Table 4.8 - Agricultural Land Use in Polonnaruwa and Batticaloa 46

Table 4.9 - Summarised Socio-economic Information on Polonnaruwa and Batticaloa 46

Table 4.10 - Details of Agricultural Activities Along the Puttalam-Maho Line 48

Table 4.11 - Socio-economic Conditions in Puttalam and Kurunegala Districts 49

Table 4.12 - Socio-economic Conditions in the Kandy District 51

Table 5.1 - Comparison of Sri Lanka Involuntary Resettlement Policy and ADB Policy 53

Table 7.1 - Entitlement Matrix 60

Table 8.1 - Implementation Schedule 64

Table 9.1 - Institutional Responsibilities in the Consultation/Compensation Process 65

Table 9.2 - Project Activities and Institutional Responsibilities 66

Table 9.3 - Cost Estimates for the Compensation Plan 68

7 1 INTRODUCTION

The project proponent, The Ceylon Electricity Board (CEB) is the national electricity utility in Sri Lanka responsible for generation and transmission of electricity in the country, and is also responsible for the distribution and supply of electricity to about 90% of the customers. About 37% (2006) of electricity is generated by Independent Power Producers (IPPs) and Small Power Producers (SPPs), while the balance generation and the entire transmission system is owned and operated by CEB. The transmission system comprises 220 kV and 132 kV transmission lines interconnecting Grid Substations (GSs) and power stations. By end 2006, the CEB transmission system consisted of 50 grid substations and about 2050 km of transmission lines. The existing transmission network and the GSs are shown in Figure 1.1.

Based on CEB’s 10-year regional demand forecasts, and the annually updated generation expansion plan, CEB’s Transmission Planning Branch prepares a 10-year transmission plan. This plan is updated every year. This plan is prepared at a national level and is a comprehensive plan, using tools such as Power System Simulation Software (PSS/e), and provides information with regard to security analysis, stability, fault levels and reliability of the system. The plan also provides information on the weak points in the system and proposes new projects to accommodate the generation additions and improve the quality and reliability of supply.

In addition to the transmission development requirements identified in regular transmission planning exercises which are focused on meeting customer needs, additional requirements have emerged owing to the rapid development of grid-connected power plants based on Non-conventional Renewable Energy (NCRE) sources, particularly small hydroelectric power plants.

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Figure 1.1 - CEB Existing Transmission System 2007

220kV Line 132kV : Underground Cable 132kV Line 132kV Line (not in operation) 220/132 kV Sub Station 132kV GS

CHUNNAKAM Hydro Power Station Thermal Power Station

KILINOCHCHI

KOTUGODA

VAVUNIA

TRINCOMALEE

ANURADHAPURA BIYAGAMA KELANIYA S'KANDA BARGE PS NEW ANURADHAPURA KHD KELANITISSA LAKDANAWI FORT KOLONNAWA PUTTALAM HABARANA

KOLLUPITIYA ATURUGIRIYA VALACHCHANAI MARADANA

ORUWALA HAVELOCK TOWN

PANNIPITIYA BOWATENNA DEHIWALA

KURUNEGALA MADAMPE RATMALANA UKUWELA

AMPARA BOLAWATTA

KIRIBATHKUMBURA VEYANGODA RANDENIGALA INGINIYAGALA KOTUGODA THULHIRIYA VICTORIA RANTEMBE BIYAGAMA KOTMALE

KELANITISSA LAXAPANA POLPITIYA WIMALASURENDRA SAPUGASKANDA KOLONNAWA BADULLA NEW ATURUGIRIYA SITHAWAKA LAXAPANA SRI JAYAWARDHANAPURA N'ELIYA ORUWALA KOSGAMA RATMALANA PANNIPITIYA CANYON

PANADURA BALANGODA HORANA RATNAPURA SAMANALAWEWA

MATUGAMA

KUKULE DENIYAYA

EMBILIPITIYA

GALLE HAMBANTOTA

MATARA

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1.1 Small Power Producers using NCRE Sources

Grid-connected electricity generating facilities with an installed capacity of less than 10 MW, and owned/operated by private companies, are considered by CEB as Small Producers (SPPs). These SPPs are embedded power plants, because they are connected at medium voltage levels (mostly at 33kV) in the CEB grid, unlike the larger power plants, which are connected at higher voltage levels of 132 kV or 220 kV. Furthermore, embedded power plants in Sri Lanka, being small and dependent on the availability of renewable energy, which is sometimes unpredictable, are not dispatched.

The Small Power Purchase Agreement (SPPA) is a standardised, non-negotiable 15-year contract. This contract is used by CEB to purchase energy from embedded power plants. The SPPA is offered only to embedded power plants for which the primary source is a renewable source, or to power plants using waste heat or using combined heat and power technology. The contract specifies the conditions, current prices and pricing policy on which electricity will be purchased by CEB. The first SPPA was signed in 1997. Investor confidence in Sri Lanka is so far seen mainly in the development of small hydro. While investors have shown some interest in developing biomass and wind power plants, there has been limited success yet.

All SPPs are private-sector investments, with CEB providing a supporting role by way of providing a letter of intent in the first instance. Once the necessary approvals from other agencies are secured by the developer, CEB enters into an SPPA. Any medium voltage (33 kV) transmission line upgrades or new lines, require to be financed by the private developer. Following this procedure, CEB Presently has 63 SPPs in operation, 59 of which are small hydroelectric power plants. The total capacity of SPPs in operation is 114 MW, of which 112 MW are small hydroelectric power plants. In year 2006, 3.7% of total electricity requirement of Sri Lanka were met with SPPs.

Development of a SPP is conducted in the following procedure: Application to CEB, evaluation by CEB, issue of the Letter of Intent (LoI), securing of other approvals, execution of the SPPA, financing, construction and commissioning.

Further to the 63 SPPs already in operation, CEB has signed 37 SPPAs (35 of which are small hydro), which are in various stages of development. In addition to all the above, a further 96 letters of intent (of which 69 are for small hydro) have been issued by CEB. As it is evident from the above, investors are eager to invest in NCRE-based power generation projects in Sri Lanka under the SPPA mechanism, and this power purchase scheme has a very high potential of further enhancing the development of renewable energy for electricity generation. The Government’s 10-year development plan and the National Energy Policy of Sri Lanka state that the country will endeavor to reach a 10% target of electricity generation from NCRE sources by year 2015. The newly-established Sri Lanka Sustainable Energy Authority (SEA) has been assigned the task of preparing plans and executing them to reach this national goal.

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1.2 Constraints of CEB Grid to Absorb Renewable Energy

Sri Lanka’s small hydroelectric potential is centered on three provinces: Central, Sabaragamuwa and Uva. Owing to the attractive prices offered by CEB and the country experience in the development of hydropower potential, investor enthusiasm has been largely focused on hydroelectric SPPs. CEB has twelve GSs located in these three provinces, and adjacent provinces, to which hydroelectric SPPs are connected: Badulla, Balangoda, Deniyaya, Kiribathkumbura, Kosgama, Mathugama, Nuwara Eliya, Rantembe, Seethawaka, Ratnapura, Ukuwela, Wimalasurendra. Out of these twelve GSs, CEB is no longer issuing LoIs for small hydro SPPs to be connected to the following nine GSs, owing to the firm capacity being exceeded by the LoIs/SPPAs already active: Badulla, Balangoda, Deniyaya, Nuwara Eliya, Rantembe, Seethawaka, Ratnapura, Ukuwela, Wimalasurendra. Out of the above, the capacity constraint at Deniyaya is being relieved through another project, and accordingly, the existing capacity at eight GSs is a severe handicap in Sri Lanka’s plan to rapidly harness renewable energy for electricity generation.

LOIs are no longer issued by CEB to prospective small power producers whose small hydro developments would feed power to any of these eight GSs. Therefore, augmentation of these eight GSs (or other alternative feed-in transmission infrastructure) remains a high priority for Sri Lanka to develop the small hydroelectric potential to the maximum possible extent, with far-reaching and long-term economic and environmental benefits.

As it would be explained in detail later, in this subproject, CEB proposes to expand the capacity of seven grid substations which are within the existing GS premises itself.

In general, the absorption capacity of each GS presently limited to 25 W will be raised to 50 MW with the proposed capacity expansion. Specific details of existing and planned capacity after the proposed augmentation, are given in chapter 2 of this report.

2 PROJECT SCOPE AND LAND USE

2.1 Summary Scope of the Project

Ceylon Electricity Board (CEB) desires to implement a project titled “Clean Energy and Access Improvement Project” which is divided into three subprojects as follows:

Subproject 1: Construction of New System Control Centre Subproject 2: Augmentation of eight Grid Substations for the Absorption of Renewable Energy and construction of one new Grid Substation Subproject 3: Augmentation of eight Grid Substations, construction of three new Grid Substations and Construction of five new Transmission Lines

The contents of the subprojects 2 and 3 are summarised in Tables 2.1 and 2.2.

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Table 2.1 - Summary Scope of the Subproject 2

Grid Substation Purpose of Existing Existing Proposed Transformer New Firm Original Transformer Firm Investment Capacity after Capacity Design Capacity Capacity the Proposed (MW) (MW) Investment

1 Balangoda Grid 2 x 31.5 MVA 25 Augment with 3 x 31.5 MVA 50 substation one 31.5 MVA transformer 2 Nuwara Eliya Grid 2 x 31.5 MVA 25 Augment with 3 x 31.5 MVA 50 substation one 31.5 MVA transformer 3 Seethawaka Grid 2 x 31.5 MVA 25 Augment with 3 x 31.5 MVA 50 substation one 31.5 MVA transformer 4 Ukuwela Generation 2 x 31.5 MVA 25 Augment with 3 x 31.5 MVA 50 substation + one 31.5 MVA grid transformer substation

New Grid Substation Grid Substation Transformer Capacity after the Proposed Investment 6 Mahiyangana 2 x 31.5 MVA

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Table 2.2 - Summary Scope of the Subproject 3 Existing Key Investment Transformer Transformer Capacity after the Capacity Proposed Investment First Priority Scope 1 Ampara 2 x 31.5 MVA Augment with one 31.5 MVA transformer 3 x 31.5 MVA 2 Habarana 2 x 31.5 MVA Augment with one 31.5 MVA transformer 3 x 31.5 MVA 3 Horana 2 x 31.5 MVA Augment with one 31.5 MVA transformer 3 x 31.5 MVA 4 Kurunegala 2 x 31.5 MVA Augment with one 31.5 MVA transformer 3 x 31.5 MVA 5 Matara 2 x 31.5 MVA Augment with one 31.5 MVA transformer 3 x 31.5 MVA 6 Panadura 2 x 31.5 MVA Augment with one 31.5 MVA transformer 3 x 31.5 MVA 7 Valachchenai 2 x 10 MVA Augment with one 31.5 MVA transformer 2 x 10 + 1 x 31.5 MVA 8 Veyangoda 2 x 31.5 MVA Augment with one 31.5 MVA transformer 3 x 31.5 MVA 9 Maho - Construction of new Grid Substation 1 x 31.5 MVA 10 Pallekelle - Construction of new Grid Substation 2 x 31.5 MVA 11 Habarana- - Construction of 132kV D/S Transmission Line - Valachchenai (98.6km) 12 Puttalam- - Construction of 132kV D/S Transmission Line - Maho (42km) 13 Ukuwela- - Construction of 132kV D/S Transmission Line - Pallekelle (18km) Second Priority Scope 14 Kurunegala 2 x 31.5 MVA Augment with one 31.5 MVA transformer 3 x 31.5 MVA 15 Habarana 2 x 31.5 MVA Augment with one 31.5 MVA transformer 3 x 31.5 MVA 16 Valachchanai 2 x 10 MVA Augment with one 31.5 MVA transformer 2 x 10 + 1 x 31.5 MVA 17 Horana 2 x 31.5 MVA Augment with one 31.5 MVA transformer 3 x 31.5 MVA 18 Naula - Construction of new Grid Substation 1 x 31.5 MVA 19 Galle-Matara - Construction of 132kV D/S Transmission Line - (34km) 20 Naula in and - Construction of short 132kV D/S Transmission out connection Line (0.5km)

2.2 Detailed Scope of Subproject 2

2.2.2 Augmentation of Existing Grid Substations

(i) Augmentation of 132/33kV GS at Balangoda Augmentation of the existing 2x31.5 MVA double bus bar GS at Balangoda to 3x31.5 MVA double bus bar GS. (ii) Augmentation of 132/33kV GS at Nuwara Eliya Augmentation of the existing 2x31.5 MVA single bus bar GS at Nuwara Eliya to 3x31.5 MVA single bus bar GS, with two 33kV outdoor feeder bays and one 33kV bus section bay. (iii) Augmentation of 132/33kV GS at Seethawaka Augmentation of the existing 2x31.5 MVA single bus bar GS at Seethawaka to 3x31.5 MVA single bus bar GS. (iv) Augmentation of 132/33kV GS at Ukuwela

13 Augmentation of the existing 2x31.5 MVA single bus bar GS at Ukuwela to 3x31.5 MVA single bus bar GS.

Mahiyangana GS: The new Mahiyangana GS will be located on 2 ha of state land. The government had leased this block of land to the Sri Lanka Broadcasting Corporation (SLBC) about 10 years ago to set up a broadcasting station. However, the initiative had not materialised, though a few buildings had been constructed by SLBC for the purpose. The buildings have now been abandoned. The government has therefore, agreed to transfer the land to CEB to construct the proposed GS. The site lies within a state-owned vacant land 8 ha covered with sparse vegetation. Access to the site is a roadway from the Mahiyangana – Padiyatalawa main road. The proposed site is shown in Figure 2.1, and there will be no resettlement or relocation of people from this site.

Figure 2.1 - Site of the Proposed GS in Mahiyangana

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2.3 Detailed Scope of Subproject 3

2.3.1 Augmentation of Existing Grid Substations

(i ) Ampara Grid Substation Transformer Capacity: 2x31.5 MVA increased to 3x31.5 MVA Other additions: one 132kV single busbar transformer bay, one 132kV bus section bay, one 33kV transformer bay, 4x33 kV feeder bays and one 33kV bus section bay, Installation of 30MVAr power factor controlled breaker switched capacitors at 33kV bus

(ii) Habarana Grid Substation Transformer Capacity: 2x31.5 MVA increased to 3x31.5 MVA Other additions: one 132kV S/B transformer bay, one 33kV transformer bay, 1x33kv bus section bay, 4x33 kV feeder bays

(iii) Horana Grid Substation Transformer Capacity: 2x31.5 MVA increased to 3x31.5 MVA Other additions: one 132kV single busbar transformer bay, one 33kV bus section bay, one 33kV transformer bay, 4x33 kV feeder bays

(iv) Kurunegala Grid Substantiation Transformer Capacity: 2x31.5 MVA increased to 3x31.5 MVA Other additions: one 132kV, single busbar transformer bay, one 33kV bus section bay, one 33kV transformer bay, 4x33 kV feeder bays

(v) Matara Grid Substation Transformer Capacity: 2x31.5 MVA increased to 3x31.5 MVA Other additions: one 132kV single busbar transformer bay, one 33 kV bus section bay, one 33kV transformer bay, 4x33 kV feeder bays)

(vi) Panadura Grid Substation Transformer Capacity: 2x31.5 MVA increased to 3x31.5 MVA Other additions: one 132 kV single busbar transformer bay, one 33 kV bus section bay, one 33 kV transformer bay, 4x33 kV feeder bays

(vii) Veyangoda Grid Substation Transformer Capacity: 2x31.5 MVA increased to 3x31.5 MVA Other additions: one 132 kV double busbar transformer bay, one 33 kV transformer bay, 4x33 kV feeder bays

(viii) Valachchenai Grid Substation Transformer Capacity: 2x10 MVA increased to 2x10+1x31.5 MVA Other additions: one 132 kV single busbar transformer bay, one 132 kV bus section bay, one 33 kV transformer bay, 4x33 kV feeder bays and one 33 kV bus section bay

15 2.3.2 New Grid Substations

(i ) Maho Grid Substation Transformer Capacity: 1x31.5 MVA Others: 1x132 kV single busbar transmission line bay, 1x132kV single busbar transformer bay, 1x33 kV transformer bay, 4x33 kV feeder bays,

The new Maho GS will be located on approximately 2 ha of land. The block of land earmarked for the GS is presently owned by the government, and the procedure to have the land allocated to CEB has already commenced with the application being made to the DS of the area. The site is located in Wilawa GN division in the District of Kurunegala, in the Northwestern province, on the Maho-Nikaweratiya public highway, 2 km away from the Maho town. Access to the land will be directly from the public highway.

The land is presently bare, with no appreciable cultivations and is covered in shrubs. There are no people living on the site and hence there will be no need for relocation.

(ii) Naula Grid Substation Transformer Capacity: 1x31.5 MVA Others: 2x132 kV single busbar transmission line bay, 1x132 kV single busbar transformer bay, 1x33 kV transformer bay, 4x33 kV feeder bays Transmission interconnection: Construction of single in-out connection from Ukuwela- Habarana 132 kV transmission line (2cct, 0.5 km, Zebra)

The new Naula GS is proposed to be located on approximately 2 ha of land. The block of land earmarked for the GS is presently owned by the Mahaweli Authority (a Government institution), and the procedure to have the land allocated to CEB has already commenced with the application being made to Mahaweli Authority. The site is reached from the Naula Town by first travelling 1 km along the Elahera Road, and then along a 1 km roadway to be upgraded and developed by CEB under this project. The first 50 m of the proposed 1 km roadway has a concrete surface while the balance presently has a gravel surface. On another boundary, there is a forest reservation, and on the remaining boundary, there are 10 houses within a short distance from the land.

The land is presently bare with no appreciable cultivation and is covered in shrubs, and at times used by Mahaweli Authority as dumping grounds. There are no people living on the site and hence there will be no need for relocation.

(iii) Pallekele Grid Substation Transformers Capacity: 2x31.5 MVA Others: 2x132 kV single busbar transmission line bays, one 132 kV bus section bay, 2x132 kV single busbar transformer bays, 2x33k V Transformer bays, one 33 kV bus section bay, 8x33 kV feeder bays, Installation of 4x5 MVAr, power factor controlled breaker switched capacitors.

The new Pallekelle GS will be located on approximately 2 ha of land. The block of land earmarked for the GS lies within the Pallekelle industrial zone of the Board of Investment (BoI), and the land is already allocated to CEB. The site is reached from the Kandy-Digana Road, along the access road to the industrial zone, and then along an internal road of the

16 zone. On one boundary, there is a private land, and on another boundary, there is a bare land. There is a factory located across the zone’s internal road, when looking from the land.

The land is presently bare with no appreciable cultivations and it is flat. There are no people living on the site and hence there will be no need for relocation.

2.3.3 New Transmission Lines

Selection process of transmission line routes gives priority to avoid environmentally and socially sensitive areas (eg. protected areas, forests, dense human settlements, small plots of lands, schools, hospitals etc). Continuation of this concept is carried out until implementation stage. During the profile survey, certain improvements (compared to the initial route shown in the original RP of 2008) were effected to some sections of Galle – Matara and Habarana – Valachchenai line routes in order to minimize social impacts. Since these changes were effected subsequent to the previous submission of environmental safeguard documents to the ADB, this document has been revised to reflect all subsequent changes.

Galle – Matara line encountered newly built housing scheme in Dikkumbura area. Responding to public concerns, CEB made changes to proposed route which reduced the number of households coming under the line by 12. This change has also resulted in a minor reduction in length of 190m.

Habarana – Valachchenai line was subjected to several changes in Hingurakgoda, Gallella, Welikanda, Vakaneri areas to minimize possible impacts to human settlements and cultivated areas. Line was routed through paddy fields in South-west of Hingurakgoda to stay away from densely populated areas closer to the town centre. Newly built settlements in Gallella area has been avoided by routing along paddy fields. A11 road from Habarana to Valachchenai has settlements in Ruhunuketha and Welikanda areas with sensitive public places such as hospitals and schools. In order to avoid said areas, proposed route has been deviated to cross A11 road near 95km post and traverse along chena and paddy lands up to Punani. After Punani, line route was deviated to traverse along shrub and grass lands parallel to the railway track up to Miyankulam, thus keeping away from farmlands and houses in South of Vakaneri tank, compared to initially proposed route.

(i) Galle-Matara  Construction of Galle-Matara 132 kV transmission line (two circuits, 34 km, Zebra).  Construction of 2x132 kV, Double Busbar transmission line bays at Galle GS.  Construction of 2x132 kV, Single Busbar transmission line bays at Matara GS.

(ii) Habarana-Valachchenai  Construction of 132kV transmission line from Habarana to Valachchenai (98.6 km, Zebra, one circuit stringing out of two circuits)  Construction of 1x132 kV single busbar transmission line bay at Habarana Grid Substation  Construction of 1x132 kV single busbar transmission line bay at Valachchenai Grid Substation

17 (iii) Puttalam-Maho  Construction of Puttalam-Maho 132kV transmission line (one circuit stringing out of two circuits, 42km, Zebra)  Construction of 1x132 kV, single busbar transmission line bay at Puttalam Grid Substation

(iv) Ukuwela-Pallekelle  Construction of Ukuwela-Pallekele 132 kV transmission line (two circuits, 18 km, Zebra)  Construction of 2x132 kV double busbar transmission line bays at Ukuwela Grid Substation.

(v) Naula in and out connection  Construction of 0.5km long 132 kV transmission line for in and out connection to Naula Grid Substation from existing Ukuwela – Habarana 132kV Transmission Line(two circuits, 0.5 km, Zebra).

2.4 Land Use for the Project

2.4.1 New System Control Centre and Grid Substations to be Augmented

New System Control Centre and all the GSs to be augmented (four in subproject 2 and eight in subproject 3) will use available space within existing GS premises, with no acquisition of land required. In System Control Centre and some GSs, CEB’s own buildings within the GS have to be relocated or modified, and in some locations, the existing fence has to be moved to cover more of the land space owned by CEB, but there will be no relocation or resettlement of people, or loss of property by individuals. Figure 2.2 shows the space available at a few GSs.

18 Figure 2.2 - Space Available for the Augmentation of GSs

Badulla Balangoda

Nuwara Eliya Wimalasurendra

Horana Kurunegala

19

Panadura Veyangoda

2.4.2 New Transmission Lines

(i) Galle- Matara 132 kV Transmission Line The proposed 132 kV transmission line from Galle to Matara is about 34 km in length. The line starts at the GS in Galle and generally proceeds eastwards mostly over semi-developed4 areas and semi-natural5 habitats. The proposed line corridor will cross a mix of landscapes comprising home gardens, agricultural lands, paddy fields and scrublands in reaching the GS in Matara. The general layout of the proposed transmission line is shown in Figure 2.4 and further improved alignment is shown in Figure 2.4(a). The composition of land use across the optimized line corridor during detailed design stage is paddy land (54%), home garden & village settlements (36%), coconut lands (2%) and scrub and marsh (8%). The corridor will cross two A-class roads, four B-class roads and the river called Polwatte Ganga.

4 Semi-developed areas mean suburbs and villages with scattered housing, with no contiguous areas of agricultural development, but where small-scale farming and home gardens exist and productively used. 5 Semi-natural areas mean areas away from strictly natural habitats for plant and animals, but areas that could adequately support biodiversity, in the midst of agricultural developments and human settlements.

20 Figure 2.3 - Proposed Route for the New Galle-Matara Transmission Line

Figure 2.3(a) - Revised Route for the New Galle-Matara Transmission Line

21

Table 2.3 - Land Use in the Galle-Matara Line Corridor (2010) Selected Option 1 Line length (km) 34 Land use type - % of line length Paddy field 54% Home garden/village settlement 36% Coconut 2% Scrub 4% Marsh 4% Note: For a discussion on the optional routes considered, please see Chapter 3.

(ii) Habarana-Valachchenai 132 kV Transmission Line

The proposed 132 kV transmission line from Habarana to Valaichchenai is about 98.6 km in length. The line will start at the existing Habarana GS located at the 110 km post on the A6 road to Trincomalee. Site of the Habarana GS is almost on the edge of the Polonnaruwa district. The line corridor will cross the districts of Polonnaruwa and Batticaloa in reaching the GS in Valaichchenai. The general layout of the proposed transmission line is shown in Figure 2.5

The percentage composition of the land use across the line corridor is; Chena6 and shrub land (41%), forest (12%), paddy land (38%) and village settlements (4%). The corridor will cross 2 A-class and 2 B-class roads, will cross and the Mahaweli river about 3 km north of Manampitiya bridge.

Figure 2.4 - Proposed Route for the Habarana-Valachchenai Line

6 Chena is generally degraded forest, used informally for shifting agriculture in subsistence farming

22

Figure 2.5 (a) - Revised Route for the Habarana-Valachchenai Line

Table 2.4 - Land Use Along the Habarana-Valachchenai Line Route (2010)

Selected Option 1 Line length (km) 100 Land use type - % of line length Chena/Scrub 41 Forest 12 Paddy 38 Grassland 3 Settlement/home garden 4 Other plantations 2 Note: For a discussion on the optional routes considered, please see Chapter 3.

(iii) Puttalam-Maho 132 kV Transmission Line

Proposed 132 kV transmission line from Puttalam to Maho will be 42 km in length. The line will start at the GS situated in Kalladi in the Puttalam DS division and traverse the DS divisions of Anamaduwa and Kotawehera in reaching the proposed GS in Maho. The line will cross over the A 10 road that joins Puttalam with Anamaduwa, and also three other B- class roads in its passage to Maho. General layout of the proposed transmission line is shown in Figure 2.6. About 70% of the line will pass over chena, paddy and grasslands. Rest of the line will go over isolated villages situated closer to Maho end of the line. Land use types and the roads crossed by the proposed corridor are described in Table 2.6.

23 Figure 2.5 - Proposed Traverse of the Puttalam-Maho Line

Table 2.5 - Land-use Along the Puttalam-Maho Line Corridor (2010)

Selected Option 1 Line length (km) 42 Land use type - % of line length Paddy field 29% Home garden/village settlement 35% Chena 31% Grassland 6% Note: For a discussion on the optional routes considered, please see Chapter 3.

(iv) Ukuwela-Pallekelle 132 kV Transmission Line

The proposed 132 kV transmission line from Ukuwela to Pallekele will be 18 km in length. The line will start at the GS situated near the Ukuwela power station and proceed in a south- easterly direction in reaching the proposed GS to be sited within the Pallekele Industrial Zone. The line will traverse semi-developed areas in the Kandy district. The corridor has been selected in a way that maximises the passage through scattered patches of paddy fields. About 50% of the line will pass over paddy fields and the balance comprises home gardens and village settlements. The proposed line corridor will cross the roads B36 (twice) and B37. The general layout of the proposed transmission line is shown in Figure 2.7.

24

Figure 2.6- Ukuwela-Pallekelle Line Trace

Table 2.6- Land Use along Ukuwela-Pallekelle Line Selected

Option 1 Approximate line length (km) 16.5 Land use type (% of line length) Paddy field 48.8 Home garden 45.8 Village settlements 5.5 Road crossings (A & B class and minor 10 roads) Railway crossings 2

(v) Naula in - out connection

The proposed in and out connection to Naula GS (described under para 2.3.2 above) from existing Ukuwela - Habarana 132kV transmission line will be a short 132 kV transmission line approximately 0.5 km in length. The line will start at the closest angle tower (to proposed Naula GS) of the existing transmission line, and will be terminated at the proposed GS. The proposed line corridor (of 0.5Km) consist of mainly shrubs, chenas and a few home gardens only

25

The composition of land use across the line corridor is shrub (40%), chenas (33%) and home gardens (27%). home garden & village settlements (33%), and scrub and marsh (9%). The corridor will cross a single B-class road and a minor road only.

Figure 2.8- In and out connection at Naula GS

Table 2.6- Land-use along In and Out Connection at Naula GS Selected Option 2 Approximate line length (km) 0.5 Land use type (% of line length) Home garden 27 Shrub 40 Chena 33 Schools Nos. - Road crossings Nos. 2 (B class and minor roads)

2.5 Type of Project and the Category

The Clean Energy and Access Improvement Project consists of augmentation of twelve existing GSs, building four new GSs, and building five new transmission lines along a new

26 corridor developed for each new line. All the twelve GSs would be augmented within the available space, and no new land will be acquired. The four new GSs would be built on land acquired from the government, and presently there are no settlements on any of these four blocks of land earmarked to locate the four GSs. As such, there will be no involuntary resettlements or loss of land/livelihood or disturbance to any member of public owing to the augmentation/construction of GSs.

This project includes the development of five new rights-of-way for transmission lines and the construction of five lines. There will be some temporary obstructions to the people who own or use the land over which the line are to be drawn, during construction. With the optimizations carried out during detailed design stage, number of affected HHs further reduced by 12 for Galle – Matara Transmission line and 41 for Habarana – Valachchenai Transmission line. During operation, there will be some land-use restrictions, the extent of which, and method of compensation are explained under Chapter 3. There will be no temporary or permanent displacement of people from their homes or livelihoods.

According to the ADB Handbook on Resettlement7 (page 14) and Operations Manual8, this project can be classified to have insignificant resettlement, with less than 200 persons subject to “loss of productive and other assets (including land), income and livelihoods”. It is emphasised that the project would not cause any loss of productive and other assets, income and livelihood, but would cause some land use restrictions, as explained in this plan.

Therefore under ADB guidelines, this project is classified to be of “Involuntary Resettlement category B: Not Significant”.

Thus, this project requires a “short resettlement plan” under the ADB guidelines.

2.6 Study Methodology, Scope and Limitations

The GSs included in this project do not cause any loss of productive and other assets (including land), income and livelihoods, and thus requires lesser consideration in this resettlement and compensation plan.

In case of the five transmission lines, the work is presently at the end of the planning stage. The technical specifications of the lines have been finalised, and preliminary identification and further improvements of the line routing has been completed with map-based assessments followed by field visits, and finally during environmental approval process under NEA, by CEB engineering staff and Environmental Officer.

This study extensively draws upon the experience of CEB staff who have been working on the planning and design phases of the GSs, and the information collected during site visits. In case of transmission lines, the study draws on the experience of CEB design engineers about the route, and the information obtained from other experts in areas such as biodiversity impacts along the proposed corridor.

7 Handbook on Resettlement, A Guide to Good Practice, Asian Development Bank, 1998. Also see ADB Policy on Involuntary Resettlement, Aug 1995. 8 Operational Manual Bank Policies: Involuntary Resettlement, 25 Sep 2006

27 Compared to the initial Resettlement and Compensation Plan, this updated plan reflects the information available from different sources stated above at the time of detailed design. (Sep 2010)

As of now, all the environmental approvals have been obtained (by 20l0 for last project), and detailed route surveys have been completed. Therefore corridors for five transmission lines under this project have been finalized subjected to specific conditions of environmental approval and findings of route survey. All the confirmed deviations and resulted impact changes have been illustrated in this updated report. There exists a further limitation with regard to subsequent process of addressing grievances of affected persons. Following to that, it might require minor deviation from the proposed alignment. These deviations can only be confirmed after the notices are issued in accordance with the Electricity Act, and objections are resolved by the relevant DSs. The updated resettlement plan will be submitted to ADB, after the detailed surveys have been completed.

3 MINIMISATION OF IMPACTS AND MITIGATORY MEASURES

3.1 Measures to Minimise Impacts

3.1.1 Grid Substations to be Augmented

All the twelve GSs to be augmented would use the land space already available within each GS, and no additional land would be acquired by CEB or assigned to CEB. This is the best option available to expand the GS capacity, at the same location with no additional land use. Therefore, alternative locations were not considered for the augmentation of the twelve GSs in the project.

3.1.2 New Grid Substations to be Established

CEB design engineers extensively examined the area in which the new GSs would require to be located, and reviewed a number of optional sites for each one of the four new GSs. The following were the crucial issues considered:

(a) Availability of land: The Government of Sri Lanka or its various agencies own land in many parts of the country, and using Government land is the best option to locate a new GS. There will be no resettlement of private dwellings and no impacts on land use. Therefore, CEB opted to use Government land in all the four locations of the news GSs. (b) Convenience of access to a transmission corridor: All the four new GSs would be the terminals of the new transmission corridors to be developed and lines to be built. Land use impacts are higher when transmission lines cross well-developed, built-up areas. Therefore, the land selection for the GSs have avoided locations within townships of Mahiyangana, Maho, Naula and Pallekelle, but are nevertheless within close proximity to the towns to ensure the technical quality of service to the township (and in case of Pallekelle, the service to the industrial zone, as well) would not be jeopardised.

The land earmarked at Mahiyangana has some abandoned buildings, whereas all the other three sites are clear of any buildings. Therefore, the four sites selected (each of approximately

28 2 ha) are nearly the best options available to site the new GSs. No specific options were considered for these four sites.

3.1.3 Strategy to Minimise Impacts of New Transmission Lines

A number of map-based routing options were considered for each new transmission corridor. These options were then examined during site visits, except for the in and out connection at Naula, for which two options were considered. In examining the optional routes, the primary focus was on minimising impacts on human settlements, houses and other buildings, crops and trees. As present and future human settlements are likely to be focused more along A and B class public roads and in urban areas, the optional line routes studies avoided or minimised crossings of public highways and urban areas. The general guidelines followed in selecting routing options are listed below:-

 Minimise disturbance to human settlements and other built-up areas  Avoid forest and wildlife reserves. Where it is not possible to avoid the line to traverse through sanctuaries, national parks, reserve forests, etc., minimise the route length through such areas  Avoid monuments of cultural or historical importance, and of religious importance  Minimise impacts to any social infrastructure and services such as playgrounds, schools and hospitals.  Avoid coconut, rubber and other plantations with high grown trees  Route the line through grasslands, paddy fields, tea, cinnamon, chena, shrub and marshes as much as possible to minimise damage to the tree cover, particularly in areas with tall trees.

Every effort was made to comply with the above criteria but compromises were unavoidable in certain situations. Likely summary of impacts on any sanctuary, forest and wildlife reserve give below. Some of these impacts are relevant to other non-forest areas as well.

 Loss of mature trees: the 27m-wide line corridor needs to be cleared of trees over 3 m in height as well as large trees adjacent to the corridor  Loss of habitat for rare birds if they are nesting on such trees  Disturbance to the soil due to uprooting of trees leading to soil erosion  Disturbing the wildlife habitat during the construction phase, mainly due to noise arising from vehicle traffic

3.2 Optional Routes for Transmission Lines

At least three options were considered in detail for each of the all new transmission lines to be built under this project, except for the in and out connection at Naula, for which two options were considered. In this subsection, we summarise the options, particularly the land- use impacts of each option relevant to this resettlement and compensation plan.

(i) Galle-Matara 132 kV Transmission Line

29 Evaluation of options: CEB has identified three optional routes for the new transmission corridor to be developed under this subproject. These three options are shown in Figure 3.1. The land-use patterns along the optional routes are compared in Table 3.1.

Figure 3.1 - Optional Routes for the Galle-Matara Transmission Corridor

Table 3.1 - Land-use Pattern Along the Three Optional Routes for Galle-Matara Option 1 Option 2 Option 3 Comments Approximate line length (km) 35.9 35.4 34.0 Estimates on map-based routing Land use type (% Paddy field 58.1 61.6 55.7 Paddy cultivation can continue of line length) in the corridor. Favourable owing to minimum long-term disturbance to farming Marsh/Swamp 5.0 4.6 4.6 Tea 1.7 1.4 - Coconut 2.8 1.7 3.6 Other cultivations 6.7 0.7 4.6 Home garden 20.0 20.4 26.6 May have dispersed houses Shrub 3.7 3.6 - Chena-type land (rotating agriculture, a few isolated tall trees) Village settlements 2.0 6.0 4.9 Home garden with houses marked in the map. It is required to minimise the distance traversed within populated

30 Option 1 Option 2 Option 3 Comments areas, to minimise the land-use restrictions and disturbance to private lands and houses. River crossings Nos. 3 1 1 River crossings have to be minimised for technical reasons, and to prevent location of transmission towers on river embankments Road crossings Nos. 20 21 23 Road crossings have to be minimised, to ensure minimum land-use restrictions caused by the line, because housing density is high near national highways

Based on the above screening, it was decided to select Option 1, which has the lowest impact on home gardens, in spite of the fact that it is about 1.9 km longer than the shortest distance identified for option 3.

Expected Impacts of the Selected Option and mitigatory measures: About 58% of the selected option lies along paddy fields, which are cultivated twice a year. The active periods are April-July and November–February, and if tower foundation or line stringing work is done during this period. While every effort will be made to (a) conduct tower footing construction work and line string work during the off-season, and (b) not to build temporary access roads to tower location across the paddy field by hand-carrying the materials to the locations, in case these have to be done during the cultivation season. In case of the crossings of coconut and home gardens, there is the possibility of coconut and other trees would have to be cleared along the 27 m corridor, and the vegetation permanently maintained at a height of 3 m. Ever effort would be made to ensure that during route selection, long stretches of coconut or other productive home gardens are avoided.

(ii) Habarana-Valachchenai 132 kV Transmission Line:

Evaluation of options: CEB has identified three optional routes for the new transmission corridor to be developed under this subproject. These three options are shown in Figure 3.2. The land-use pattern along the optional routes are compared in Table 3.2.

31 Figure 3.2 - Alternative Routes for the Habarana - Valachchenai Transmission Corridor

Table 3.2 - Land-use Pattern Along the Three Optional Routes for Habarana-Valachchenai Option 1 Option 2 Option 3 Comments Approximate line length (km) 100.0 100.0 95.1 Estimates on map-based routing Land use type (% Paddy field 33.0 13.2 15.6 Paddy cultivation can continue of line length) in the corridor. Favourable owing to minimum long-term disturbance to farming Marsh/Swamp 1.4 1.7 1.7 Grass lands 2.5 1.7 1.9 Chena 1.3 1.5 2.0 Other cultivations 2.3 0.3 2.7 Home garden 5.5 5.0 5.0 May have dispersed houses Shrub 38.8 20.2 20.7 Chena-type land (rotating agriculture, a few isolated tall trees) Forest 11.0 34.3 29.8 Strict National - 20.3 17.6 Reserve (forest/wildlife) Sanctuary - - Village settlements 4.2 1.8 3.0 Home garden with houses marked in the map. It is required

32 Option 1 Option 2 Option 3 Comments to minimise the distance traversed within populated areas, to minimise the land-use restrictions and disturbance to private lands and houses. Historic & Cultural - 0.3 - Sites Tanks/ Abandoned Tanks 0.2 0.4 0.4 Rock 0.3 0.3 River crossings Nos. 7 4 1 River crossings have to be minimised for technical reasons, and to prevent location of transmission towers on river embankments Road crossings Nos. 16 8 13 Road crossings have to be minimised, to ensure minimum land-use restrictions caused by the line, because housing density is high near national highways Railway crossings Nos. 3 3 3

Based on the above screening, it was decided to select Option 1, which has the lowest impact on forests and no traverse through the strict natural reserve, in spite of the fact that it is about 4.9 km longer than the shortest distance identified for option 3. In the case of this line, the selected option has a slightly high percentage of traverse through home gardens, though small.

Expected Impacts of the Selected Option and mitigatory measures: About 33% of the selected option lies along paddy fields, which are cultivated twice a year. The active periods are April-July and November–February, and if tower foundation or line stringing work is done during this period. While every effort will be made to (a) conduct tower footing construction work and line string work during the off-season, and (b) not to build temporary access roads to tower location across the paddy field by hand-carrying the materials to the locations, in case these have to be done during the cultivation season. In case of the crossings of coconut and home gardens, there is the possibility of coconut and other trees would have to be cleared along the 27 m corridor, and the vegetation permanently maintained at a height of 3 m. Every effort would be made to ensure that during route selection, long stretches of coconut or other productive home gardens are avoided. In the 4% length of the line (4 km) traversing village settlements, care would be taken not to locate tower footings near houses or in small blocks of land. Care would be taken to minimise damages to crops in home gardens.

(iii) Puttalam-Maho 132 kV Transmission Line:

Evaluation of options: CEB has identified three optional routes for the new transmission corridor to be developed under this subproject. These three options are shown in Figure 3.3. The land-use patterns along the optional routes are compared in Table 3.3.

33

Figure 3.3 - Optional Routes for the Transmission Corridor Between Puttalam and Maho

Table 3.3 - Land-use Pattern Along the Three Optional Routes for Puttalam–Maho

Option 1 Option 2 Option 3 Comments Approximate line length (km) 42.0 41.5 40.0 Estimates on map-based routing Land use type (% of Paddy field 33.7 29.4 27.1 Paddy cultivation can continue line length) in the corridor. Favourable owing to minimum long-term disturbance to farming Grass lands 4.6 4.7 5.1 Chena 29.5 28.0 34.5 Coconut 0.4 0.4 - Other cultivations 2.1 2.2 5.0 Home garden 26.0 29.9 25.0 May have dispersed houses Shrub 1.0 - 1.4 Chena-type land (rotating agriculture, a few isolated tall trees) Village settlements 0.5 4.7 2.0 Home garden with houses marked in the map. It is required to minimise the distance traversed within populated areas, to minimise the land-use restrictions and disturbance to

34 Option 1 Option 2 Option 3 Comments private lands and houses. Tanks/ 2.0 0.7 Abandoned Tanks Rock 0.2 Religious Premises Nos. 1.0 Road crossings Nos. 8 7 8.0 Road crossings have to be minimised, to ensure minimum land-use restrictions caused by the line, because housing density is high near national highways

Based on the above screening, it was decided to select Option 1, which has the lower impacts on home gardens and the higher share of the traverse through paddy fields, in spite of the fact that it is about 2 km longer than the shortest distance identified for option 3.

Expected Impacts of the Selected Option and mitigatory measures: About 34% of the selected option lies along paddy fields, which are cultivated twice a year. The active periods are April-July and November–February, and if tower foundation or line stringing work is done during this period. While every effort will be made to (a) conduct tower footing construction work and line string work during the off-season, and (b) not to build temporary access roads to tower location across the paddy field by hand-carrying the materials to the locations, in case these have to be done during the cultivation season. In case of the crossings of coconut and home gardens, there is the possibility of coconut and other trees would have to be cleared along the 27 m corridor, and the vegetation permanently maintained at a height of 3 m. Every effort would be made to ensure that during route selection, long stretches of coconut or other productive home gardens are avoided. In the 26% length of the line (11 km) traversing village settlements/home gardens, care would be taken not to locate tower footings near houses or in small blocks of land. Care would be taken to minimise damages to crops in home gardens.

35 (iv) Ukuwela-Pallekelle 132 kV Transmission Line:

Evaluation of options: CEB has identified three optional routes for the new transmission corridor to be developed under this subproject. These three options are shown in Figure 3.5. The land-use patterns along the optional routes are compared in Table 3.5.

Figure 3.4 - Optional Routes for the Transmission Corridor Between Ukuwela and Pallekelle

Page 36 Table 3.4 - Land-use Pattern Along the Three Optional Routes for Ukuwela-Pallekelle Option 1 Option 2 Option 3 Comments Approximate line length (km) 16.5 15.2 16.0 Estimates on map-based routing Land use type (% Paddy field 48.8 41.5 27.9 Paddy cultivation can continue of line length) in the corridor. Favourable owing to minimum long-term disturbance to farming Tea - 8.0 Other cultivations - 2.8 Home garden 45.8 46.6 52.5 May have dispersed houses Shrub - - Chena-type land (rotating agriculture, a few isolated tall trees) Village settlements 5.5 11.9 8.8 Home garden with relatively higher housing density. It is required to minimise the distance traversed within populated areas, to minimise the land-use restrictions and disturbance to private lands and houses. Religious Premises Nos. 1 2 Hospitals Nos. 1 Road crossings Nos. 10 8 13 Road crossings have to be (mainA/B, minor minimised, to ensure minimum roads) land-use restrictions caused by the line, because housing density is high near national highways Railway crossings Nos. 2 4 2

Based on the above screening, it was decided to select Option 1, which has the lowest impact on home gardens and the maximum traverse through paddy fields, in spite of the fact that it is about 1.3 km longer than the shortest distance identified for option 2.

Expected Impacts of the Selected Option and mitigatory measures: About 49% (8 km) of the selected option lies along paddy fields, which are cultivated twice a year. The active periods are April-July and November–February, and if tower foundation or line stringing work is done during this period. While every effort will be made to (a) conduct tower footing construction work and line string work during the off-season, and (b) not to build temporary access roads to tower location across the paddy field by hand-carrying the materials to the locations, in case these have to be done during the cultivation season. In case of the crossings of coconut and home gardens, there is the possibility of coconut and other trees would have to be cleared along the 27 m corridor, and the vegetation permanently maintained at a height of 3 m. Every effort would be made to ensure that during route selection, long stretches of coconut or other productive home gardens are avoided. In the 51% length of the line (9 km) traversing village settlements/home gardens, care would be taken not to locate tower footings near houses or in small blocks of land. Care would be taken to minimise damages to crops in home gardens.

Page 37 (v) In and out connection at Naula GS

Evaluation of options: CEB has identified two optional routes for the new transmission corridor to be developed under this subproject. These two options are shown in Figure 3.6. The land-use patterns along the optional routes are compared in Table 3.6.

Figure 3.6 - Optional Routes for the Transmission Corridor Between In and out connection at Naula GS

Page 38 Table 3.5 - Land-use Pattern Along the Two Optional Routes for In and out connection at Naula GS Option 1 Option 2 Comments Approximate line length (km) 1.2 0.5 Estimates on map-based routing Land use type (% Other cultivations 48 - Considering the higher number of line length) (Coconut) of removal of coconut trees for the line corridor, it is required to minimize the length through coconut cultivations Home garden 37 27 no houses along the corridor Shrub 15 40 Chena-type land (rotating agriculture, a few isolated tall trees) Chena - 33 rotating agriculture, abandoned unproductive lands or bare lands Schools Nos. 1 - Road crossings Nos. 5 2 Road crossings have to be (B/ minor roads) minimized, to ensure minimum land-use restrictions caused by the line, because housing density is high near national highways

Considering the relatively shorter line lengths, minimum environmental /social impacts are encountered in both options. However, based on the above screening, it was decided to select Option 2, which has no houses along the line corridor, and consist of mostly chena , shrub and bare lands. Also, options 2 has the shorter length among both options.

Expected Impacts of the Selected Option and mitigatory measures: The very short length the selected options(0.5Km) consist of only few home gardens, agricultural lands, shrub lands and abandoned unproductive lands while no houses, or any other cultivations are encountered. About 73% of the selected option lies along shrub lands and abandoned unproductive lands which does not get any impact from this transmission line, and the only expected impact is the clearing of grown up trees in home gardeners along the 27 m corridor, as the vegetation would be permanently maintained at a height of 3 m. under the line corridor. Care would be taken to minimise damages to crops in home gardens, while the compenciation for any removel /damages to the trees /crops wood be paid to the relevant land owners as describes under section 7 .

3.3 Key Effects on Resettlement and Land Use

The document from here onwards, will examine only the land use effects of the five new transmission line corridors to be developed under this project. The width of the corridor for all 132 kV lines is 27 meters (13.5 m on each side). Table 3.6 shows the summary resettlement and land-use impacts of each transmission line corridor after the detailed route survey. The total number of households affected (for being within the transmission line corridor) by the whole investment programme is estimated to be 365 (based on the data available in the Department of Census and Statistics for each Divisional Secretariat Divisions along each of

Page 39 the line corridor), and verified during the detailed survey conducted after the line corridor receives approval under the Environment Act.

Table 3.6 - Resettlement impacts from land-use restrictions Private Total Affected Affected Temporary Total Permanent Land trees to Blocks of Subproject Element Households Affected Affected Acquisition (ha) be cut Lands++ (Permanent) Area* (ha) Households** (Temporary) Private Government Land + Subproject 1 New System Control 0 0 0 0 0 0 0 Centre Subproject 2 Grid Sunstations to be augmented (1) Badulla GS 0 0 0 0 0 0 0 (2) Balangoda GS 0 0 0 0 0 0 0 (3) Nuwara Eliya GS 0 0 0 0 0 0 0 (4) Ratnapura GS 0 0 0 0 0 0 0 (5) Seethawaka GS 0 0 0 0 0 0 0 (6) Ukuwela GS 0 0 0 0 0 0 0 (7) Wimalasurendra GS 0 0 0 0 0 0 0 New GS (8) Mahiyanga GS 0 2 0 0 0 0 0 Subproject 3 Grid Substations to be augmented (1) Ampara GS 0 0 0 0 0 0 0 (2) Habarana GS 0 0 0 0 0 0 0 (3) Horana GS 0 0 0 0 0 0 0 (4) Kurunegala GS 0 0 0 0 0 0 0 (5) Matara GS 0 0 0 0 0 0 0 (6) Panadura GS 0 0 0 0 0 0 0 (7) Valachchenai GS 0 0 0 0 0 0 0 (8) Veyangoda GS 0 0 0 0 0 0 0 New Grid Substations (1) Maho 0 2 0 0 0 0 0 (2) Naula 0 2 0 0 0 0 0 (3) Pallekelle 0 2 0 0 0 0 0 Transmission Line (1) Galle - Matara 88 (388) 88 a. Towers 0 0 0 1.3 2 b. Transmission line 0 0 0 (2) Habarana- 47(314) 47 Valachchanai a. Towers 0 0 0 3.3 5 b. Transmission line 0 0 0 (3) Puttlam - Maho 101(404) 101 a. Towers 0 0 0 1.5 2 b. Transmission line 0 0 0 (4) Ukuwela - 126(504) 126 Pallekelle a. Towers 0 0 0 1.0 1 b. Transmission line 0 0 0 (5) Naula in and out connection a. Towers 0 0 0 0.01 0 7 3

Page 40 Private Total Affected Affected Temporary Total Permanent Land trees to Blocks of Subproject Element Households Affected Affected Acquisition (ha) be cut Lands++ (Permanent) Area* (ha) Households** (Temporary) Private Government Land + b. Transmission line 0 0 0 TOTAL 0 8 0 7.61 11 369(1610) 365  Temporary affected area includes tower footings, tower foundation and access roads. + There are no untitled users and / or encroachers presently residing in these Government lands ** The impact on each household by the project would be less than 10% of their total assets. ++ Total No. of temporary affected people is also shown within brackets.

There will be no private land acquisition and displacement of people from homes or livelihoods, and the estimated 369 land plots can continue to be productively used.

3.4 Mitigation of Impacts on Selected Routes

Removal of Vegetation: Along the line corridors, vegetation above 5m will require to be removed. As stipulated in the Electricity Act, compensation for removed or pruned trees will be paid at a fair market rate to the respective land owners based on tree type, its age and expected long-term income from the tree, according to the assessment made by the Divisional Secretary (DS). Cleared vegetation and any timber will be made available to the owner for his own use, and CEB or the government agencies will not acquire such timber removed from private land-owners. Adequate time will be allowed for the land-owners to remove the tall trees at their own pace, so that the timber can be productively used.

Tower Footings: There will be no dislocation or compulsory resettlement of people, although slight land use restrictions may result in the locations where tower foundations are erected, which has an area of approximately 10m2, spaced between 200-400 meters. During the detailed design, maximum effort has been taken to place towers at the boundary of a property to enable the landowner to use the maximum contiguous area for agriculture or other activities. The area covered by the tower footing, if placed on a private land, can continue to be used by the landowner, and CEB would not be making an outright purchase of the land. Compensation will be paid according to the Electricity Act, as assessed by the DS, for the land-use restriction at each tower footing.

During construction, there will be additional disturbance to land owners because the tower footing area may have to be cleared of all vegetation, and access to the location would have to be cleared. CEB will make maximum effort to minimise the duration of site work, so that tower foundations are established speedily and the ground will be restored to its normal state immediately after the foundation and stubs have been placed.

Impacts on Seasonal Agriculture: Action will be taken to plan the timing of construction activities including transportation of equipment and tower parts on agricultural lands to avoid any disturbances/damages of field crops, to the maximum practicable extent. This is particularly relevant when the traverse lies on paddy fields or chena lands. However, when this cannot be achieved and if an agricultural land has to be crossed during a period when crops are cultivated, a crop disturbance allowance will be paid to the respective landowners to compensate for the loss incurred, according to the assessment of the DS.

Page 41

Limitation on Building Heights: Along the right-of-way of the transmission line, no new buildings above the ground floor would be allowed. However, if there are multi-storey buildings in the line route already in place or approved for construction by the Local Authority, the design of the transmission line and the towers will be adjusted to ensure that the stipulated safety clearances will be maintained with such multi-storey buildings.

Earthworks and Soil Erosion: Earthworks associated with tower construction will be limited to excavation for four sunken concrete footings, and thus the soil disturbance will be confined to the immediate tower base. When the towers are located in sloping terrains (very few in this case), limited cutting and filling will also be required for the tower foundations and access tracks. Best engineering practices have been adopted in the design and will be adhered to during construction of the above in order to minimise erosion risks and impacts on the rest of land. Appropriate recommendations will be incorporated in contract documentation and will be monitored by CEB during construction. Techniques will include appraisal of any special erosion or slope stability risks during design, minimising clearing of vegetation and turfing and/or re-vegetating to stabilise slopes on completion, and avoidance of earthworks on erosion-prone areas during the rainy season. Monitoring of erosion mitigation measures will be incorporated in the monitoring programme.

Temporary Access Roads: Although the line construction will rely on many existing roads, certain new access roads/tracks may be built to reach tower locations, if it is absolutely necessary. Generally, maximum efforts will be made to manually transport equipment in knocked-down state to tower locations, to avoid building new access roads. Building materials such and sand and cement to such locations would also be hand-carried wherever possible. These 3-4 m wide temporary access roads will be sited carefully to minimise the disruptions to paddy farming operations. The duration of using the access road will be minimised. These temporary access roads will be completely removed after the construction, unless the DS makes a special request to retain them on public interest for future use.

4 SOCIO ECONOMIC CONDITIONS IN PROJECT AREAS

Information in this chapter is presented separately for each subproject. As the impacts are small at GSs to be augmented, socio-economic information about such locations is not presented in this report.

4.1 Subproject 3

4.1.1 Socio-economic Conditions along Galle- Matara 132 kV Transmission Line

Socio-economic description presented in this section covers the districts of Galle and Matara, which are the administrative areas within which the proposed project elements will be sited.

Water Resources: Surface water availability in Galle and Matara districts is influenced by the annual rainfall and its distribution over the year. Mean annual rainfall in the two districts is about 2600 mm and the monthly rainfall remains above 150 mm for about 75% of the year. Also two large rivers; Nilwala Ganga and Gin Ganga originating in the Sinharaja rain forest

Page 42 flow across the two districts. Therefore, the surface water availability in the region is generally favourable.

Infrastructure Facilities: Galle-Matara region has a network of roads that lead to most interior parts of the two districts, though the quality of minor roads is not very high. The total length of roads in the Southern province that encompasses the two districts is 1290 km.

At the provincial level, the household electrification rate remains 77%. Monthly electricity consumption per household varies from 50-60 kWh per month in both districts.

Industrial Activities: Industrial activities are relatively high in both districts. About 90% of the industrial establishments in the two districts are small-scale industries that employ about 60% of the total number of persons engaged in the industrial sector.

Land Use: Land use pattern in the two districts is characterised by agricultural land under tea, rubber, paddy and cinnamon interspersed with home gardens/human settlements. Tea is primarily grown in higher elevations in the two districts, rubber and spices in middle elevations and paddy in valleys.

Agriculture: Agriculture plays a major role in the two districts and cultivation of tea, rubber, paddy and cinnamon account for nearly 60% of the land under agriculture. Average size of a holding is about 0.5 ha for tea, 1.5-2.0 ha for rubber and 0.4 ha for paddy. This indicates that agriculture is a small-scale operation in the two districts, which is the common situation in most parts of rural Sri Lanka. Some data on agricultural aspects are presented in Table 4.6. Table 4.1 - Agricultural Activities in Galle-Matara Districts Galle Matara Number of agricultural holdings 191,733 153,243 Total extent of land under agriculture (ha) 88,323 81,246 Number of holdings cultivated with tea 58,549 46,152 Extent of land under tea (ha) 25,629 23,704 Average size of a tea holding (ha) 0.44 0.51 Number of holdings cultivated with rubber 3,457 2,497 Extent of land under rubber (ha) 6,676 3,731 Average size of a rubber holding (ha) 1.93 1.49 Number of holdings cultivated with paddy 38,614 39,935 Extent of land under paddy (ha) 15,091 14,676 Average size of a paddy holding (ha) 0.39 0.37 Extent of land under Cinnamon (ha) 10,065 7,269 Source: Census of Agriculture – 2002

Demographic Data: Population and the number of households in the Galle and Matara districts are 1,751,775 and 350,355 respectively. Population density (population per km2) in the two districts is close to 600, which is double the national average. Literacy rate of 90% is close to the national average.

Socio-economic Conditions: Only a minor part of the population has had no education at all (6-8%). About 65% of the population has had secondary education. Unemployment rate of 10-12% is slightly on the high side given the development status of the region. About 80% of the population derives their income by working in the private sector and through self- employment.

Page 43

Permanent houses account for over 70% of the houses in the district. Over 70% of the houses are built with brick walls, tiled roof and having water-sealed toilets. About 55% of the houses have access to drinking water from a protected well situated within the premises or in close proximity. Close to 90% of the houses are owned by a member of the family. Brief information on the socio-economic conditions in the two districts is presented in Table 4.7. Table 4.2 - Socio-economic Conditions in Galle and Matara Galle Matara Total population (2002) 990,539 761,236 Households (estimated) 198,108 152,247 Literacy rate (as % of population over 10 years age) 92.9% 89.8% % of population that had: No schooling or attended only Grade 1 5.9% 8.0% Passed Grade 1-5 21.2% 22.8% Passed Grade 6-10 39.8% 41.0% Passed GCE (O/L) 20.5% 16.7% Passed GCE (A/L) 9.5% 8.3% Unemployment rate 12.0% 10.5% Employment ector: Government / semi-government service 17.8% 17.8% Private sector 45.4% 41.5% Self-employed /unpaid family worker 34.8% 39.0% Source: Census of Population and Housing - 2001

Health Facilities: State sector is the main source of health care for the people in these districts. Curative services are provided through two teaching hospitals situated in Galle, and one Provincial hospital in Matara. There are 14 district hospitals, 13 peripheral units and 13 rural hospitals in the two districts. Well-organised preventive health services are provided through a network of institutions staffed by medical officers (MOH) and field staff. Infant mortality of 8-11 per 1000 live births recorded in the two districts is comparable to the national average. Maternal deaths show a similar pattern. Immunisation coverage of children at the age of five years is around 98%, and is above the national average.

Education Facilities: Total number of schools operating in the two districts is 934. Over 85% of them are government schools. The average number of teachers per school is 24. The number of pupils per school varies from 440 to nearly 500 in the two districts. Pupil/teacher ration varies from 18 to 21. These indicators are comparable with the national averages.

4.1.2 Socio-economic Conditions along Habarana-Valachchenai 132 kV Line

There is an existing 132 kV single circuit transmission line between Habarana and Valachchenai. The new corridor will be alongside the existing corridor for a certain distance, and would deviate southwards to a route with lower environmental impacts.

Socio-economic description presented in this section covers the districts of Polonnaruwa and Batticaloa, which are the administrative areas within which the proposed line will be sited.

Page 44 General Climate: The general climate that prevails in the two districts is characterised by hot and dry weather for most part of the year. Temperature varies from about 260 C in wetter months to around 32-330C during the drier months. The region’s rain climate follows the typical pattern that is found in the dry zone of Sri Lanka. The region remains dry from March to September except for a short spell of rain in April. Heavy rains occur during the inter-monsoon months of October and November followed by Northeast monsoon rains from December to February. The mean annual rainfall varies from about 1500 mm in Polonnaruwa to 1800 mm in the Batticaloa area.

Water Resources: Due to the existence of several large-scale irrigation tanks, there are adequate and well-distributed surface water sources in the Polonnaruwa area. The situation is less favourable in the Batticaloa area. Ground water is available in limited quantities in the Batticaloa area.

Infrastructure Facilities: Polonnaruwa – Batticaloa region has a network of roads that lead to most interior parts of the two districts, though the quality of minor roads is not very high. Household electrification rates in the North Central province that encompasses Polonnaruwa district and Eastern province that encompasses Batticaloa district are 60% and 64% respectively. Monthly electricity consumption per household varies from 50-60 kWh per month in the two districts.

Industrial Activities: Industrial activities are relatively low in both districts. Over 90% of the industrial establishments in Polonnaruwa district are small-scale industries that employ about a total of 1500 persons. Batticaloa has 6 comparatively larger industries that employ about 2150 persons.

Land Use: Land use pattern in the two districts is characterised by substantial extent of paddy land interspersed with home gardens/human settlements and large tracts of Chena, scrubland and forest cover.

Agriculture: Agriculture plays a major role in the two districts with paddy being the major crop grown in the region. Paddy production in the two districts account for about 17% of the national output. About 80-90% of the agricultural households operate less than 2 ha indicating that agriculture is a small-scale operation. This conforms to the general trend in the dry zone of Sri Lanka.

Page 45 Table 4.3 - Agricultural Land Use in Polonnaruwa and Batticaloa Polonnaruwa Batticaloa Number of agricultural households 57,672 20,628 % agricultural of households operating: Less than 0.8 ha 32% 29% Less than 2 ha 88% 78% % households earning main income from agriculture 71% 74% Source: Census of Agriculture 2002

Demographic Data: A complete database on demography and socio-economic conditions was not available in respect of the Batticaloa district, perhaps due to unstable political situation that prevailed in the district over the past decade.

Population and the number of households in the Polonnaruwa district are 363,000 and 72,600 respectively. Population density (population per km2) in Polonnaruwa is 112, which is about a third of the national average. The literacy rate of 90% is close to the national average.

Socio-economic Conditions: Only a minor part of the population has had no education at all (7%). About 70% of the population has had secondary education. Unemployment remains at 8% of the economically active population, which is somewhat lower than in most other regions in the rural dry zone. Over 85% of the population derives their income by working in the private sector and through self-employment.

Permanent houses account for over 60% of the houses in the district. Close to 65% of the permanent houses are built with brick walls, tiled roof, cemented floors and having water- sealed toilets. About 55% of the houses have access to drinking water from a protected well situated within the premises or in close proximity. Over 90% of the houses are owned by a member of the family. Brief information on the socio-economic conditions in the two districts is presented in Table 4.9.

Table 4.4 - Summarised Socio-economic Information on Polonnaruwa and Batticaloa Polonnaruwa Batticaloa Total population (2002) 363,000 Households (estimated) 72,600 Literacy rate (as % of population over 10 years age) 90% % of population that had: No schooling or attended only Grade 1 7% Passed Grade 1-5 28% Passed Grade 6-10 44% Not available Passed GCE(O/L) 14% Passed GCE(A/L) 5% Unemployment rate 8% Employment sector: Government /semi-government service 13% Private sector 19% Self-employed /unpaid family worker 67% Source: Census of Population and Housing - 2001

Page 46 Health Facilities: State sector is the main source of health care for the people in these districts. Curative services are provided through one teaching hospital situated in Batticaloa, a Provincial hospital and the Base hospital in Polonnaruwa. There are 7 district hospitals, 4 peripheral units and 7 rural hospitals in the two districts. Well-organised preventive health services are provided through a network of institutions staffed by medical officers (MOH) and field staff. However, infant mortality of 19 per 1000 live births recorded in the two districts is high when compared with the national average. Maternal deaths show a similar pattern. Immunisation coverage of children at the age of five years varies from 48% in Batticaloa and 93% in Polonnaruwa.

Education Facilities: Total number of schools operating in the district is 244. Over 95% of them are government schools. The average number of teachers per school and pupils per school are around 13 and 329. Pupil/teacher ratio is around 25. These indicators are typical of those found in rural areas in Sri Lanka.

4.1.3 Socio-economic Conditions along Puttalam-Maho 132 kV Transmission Line

Socio-economic description presented in this section covers the districts of Puttalam and Kurunegala, which are the administrative areas within which the proposed project elements will be sited.

General Climate: General climate that prevails in the two districts is characterised by hot and dry weather for most part of the year. Temperature varies from about 260C in wetter months to around 32-330C during the drier months. The region’s rain climate follows the typical pattern that is found in the dry zone of Sri Lanka. The region remains dry from March to September except for a short spell of rain in April. Heavy rains occur during the inter-monsoon months of October and November, followed by Northeast monsoon rains from December to February. Mean annual rainfall varies from about 1000 mm in Puttalam and 1500 mm in the Maho area.

Topography and Soils: Topographically, the region is characterised by flat terrain interspersed with isolated hills. The whole project area lies in the flat and undulating terrain with soil types such as Reddish Brown Earths, Non Calcic Brown soils, Low Humic Gley soil, Red Yellow Latosols and Regosols.

Water Resources: Surface water is scarce in the coastal region in the Puttalam district. The situation is, however, better in the inland parts of the Puttalam district and the northern part of Kurunegala district along the proposed line corridor, where there are many small to medium irrigation tanks. Ground water could be extracted in substantial quantities in the deep-seated limestone aquifers found in the coastal region in Puttalam district. A seasonal variation could be expected in the ground water table following the rainfall regime.

Infrastructure Facilities: Puttalam–Kurunegala region has a network of roads that leads to most interior parts of the two districts though most of them are village roads. A large number of village irrigation tanks and a few medium-scale tanks serve the small-scale paddy cultivation in the region.

Household electrification rate in the North Western province that encompasses the two districts is 66%. Monthly electricity consumption per household is 60kWh. However, it is

Page 47 likely that the local level household electrification rates and household consumption at the level of DS divisions are below the provincial level rates.

Industrial Activities: Industry employs a relatively small part of the population in both districts. Number of industrial establishments in the Puttalam and Kurunegala districts is 807 and 892, respectively. Persons employed in the sector are 11,381 and 18,294 in Puttalam and Kurunegala districts, respectively. Majority of them are small-scale industries that employ less than 25 persons per establishment. Some information on the industrial sector is presented in Table 4.10.

Land Use: Land use pattern in the two districts is characterised by substantial extent of coconut and paddy land interspersed with home gardens/human settlements and large tracts of Chena land. The proportion of land under paddy and coconut is highest in the Kurunegala district, while coconut estates, Chena land and dry zone forest occupy large parts of the Puttalam district.

Agriculture: As compared to other areas in the dry zone, agriculture plays a relatively modest role in the two districts. Only 43% of the households are classified as “agricultural households” in Puttalam, whereas in Kurunegala, the proportion of agricultural households is 76%. Nearly 90% of the agricultural households operate less than 2 ha indicating that agriculture is a small-scale operation. This conforms to the general trend in the dry zone of Sri Lanka.

Table 4.5 - Details of Agricultural Activities Along the Puttalam-Maho Line Puttalam Kurunegala Number of agricultural households 66,965 245,571 Agricultural households as % of total households 43% 76% % Agricultural households operating: Less than 0.8 ha 54% 61% 0.8-2 ha 34% 30% Households earning main income from agriculture 40% 46% Source: Census of Agriculture 2002

Demographic Data: In terms of demographic trends the two districts are very similar. The total population and the number of households in the two districts are 2,157,711 and 479,491 respectively. Household size of 4.5 persons per household is slightly below the national average. Population density (population per km2) in Puttalam and Kurunegala are 246 and 316 respectively. These are close to the national average of 300. Literacy rate of 90% is close to the national average.

Socio-economic Conditions: Over 90% of the population in the two districts is classified as “rural and working in estates”. Only a minor part of the population has had no education at all (6%). About 70% of the population in Puttalam has had secondary education whereas it is 60% in Kurunegala. Unemployment in the two districts remains around 7% of the economically active population, which is somewhat lower than in most other regions in the rural dry zone. Over 80% of the population derives their income by working in the private sector and through self-employment.

Page 48 Permanent houses account for over 60% of the houses in the two districts. Almost the same proportion of the houses is built with brick walls, tiled roof, cemented floors and having water-sealed toilets. Majority of the houses have access to drinking water from a protected well situated within the premises or in close proximity. Over 80% of the houses are owned by a member of the family. Brief information on the socio-economic conditions in the two districts is presented in Table 4.11.

Health Facilities: Sri Lanka has a well-organised island wide public health system that is rated as among the best in the Asian region. This has enabled to maintain the infant mortality and maternal deaths at a very low level.

Education Facilities: Total number of schools operating in the Puttalam and Kurunegala districts is 352 and 959 respectively. Over 95% of these are government schools. About 25% of these schools conduct classes from year 1 to 13. Average number of teachers per school and pupils per school are around 20 and 350 in the two districts. Pupil/teacher ratio is around 20. These indicators are very close to the national averages.

Table 4.6 - Socio-economic Conditions in Puttalam and Kurunegala Districts Puttalam Kurunegala District District Total population (2001) 705,342 1,452,369 Urban population 9.2% 2.4% Rural and estate population 90.8% 97.6% Households (estimated) 156,743 322,749 Literacy rate (as % of population over 10 years age) 90.9% 91.9% % of population that had: No schooling or attended only Grade 1 6.0% 6.2% Passed Grade 1-5 26.2% 21.8% Passed Grade 6-10 43.8% 41.1% Passed GCE(O/L) 14.4% 18.3% Passed GCE(A/L) 6.2% 8.9% Unemployment rate 7.0% 8.0% Employment sector: Government /semi-government service 10.5% 16.0% Private sector 52.8% 35.1% Self-employed /unpaid family worker 36.7% 48.9% Source: Census of Population and Housing 2001

4.1.4 Socio-economic Conditions along Ukuwela-Pallekelle 132 kV Transmission Line

Socio-economic description presented in this section covers the Kandy district, which is the administrative area crossed by about 95% of the proposed corridor.

General Climate: Kandy district generally experiences a comparatively mild climate with a mean annual temperature of about 250 C. The climate becomes cooler in hilly parts of the district. Given the complex topography of the mountainous region, the annual rainfall within the district varies from 2000 to 3200 mm. Annual rainfall rhythm is, however, similar across

Page 49 the district with heavy rains occurring during the inter-monsoon months and the north-east monsoon period.

Water Resources: Primary sources of surface water in the district are the small streams flowing down from the mountain ranges that surround the district and the Mahaweli river. Pressure on these resources is high due to the high population density in the district. Groundwater availability is highly site-specific and is also heavily used for domestic purposes.

Infrastructure Facilities: Kandy district has an extensive network of roads that leads to most interior parts of the district. The city of Kandy is also served by a regular train service that links the city with major destinations in the hill country and lowland regions in the northern, western and eastern parts. Household electrification rate in the Central province that encompasses the district of Kandy has reached 70%. Provincial level average monthly electricity consumption per household is 55 kWh. It is reasonable to expect that the electrification rate and household consumption may be above the provincial average in urban and semi-urban areas and lower in the outskirts.

Industrial Activities: Kandy district ranks third in the island in terms of the number of industrial establishments. Of the total number of 1699 industrial establishment, 92% belong to the category of small-scale industries that employ less than 25 persons per establishment. The sector employs 28,474 persons of which 50% is employed in the small-scale sector.

Land Use: Land use pattern in the district is characterised by large-scale tea plantations in the hilly areas, small tracts of paddy fields among the village settlements, small-scale rubber plantations and natural forest cover mostly found in the Knuckles mountain range.

Agriculture: Tea and paddy account for over 60% of the land under agriculture in the Kandy district. Other crops that are grown in significant quantities include pepper, cloves and fruits. As in other parts of the country, agriculture is a small-scale operation in the district except for large-scale commercial tea plantations. Only 40% of the households refer to agriculture as the source of highest income, which seems to indicate that a sizeable population is also engaged in a variety of non-agriculture-related activities such as small- scale industries, commercial activities, and government and private sector employment.

Demographic Data: Population and the number of households in the district are 1,272,463 and 254,493 respectively. Population density (population per km2) in the district is over 600, which is double the national average. Literacy rate of 90% is close to the national average.

Socio-economic Conditions: Only 7% of the population has had no education at all. About 60% of the population has had secondary education. Unemployment rate of 10% is slightly on the high side given the development status of the region. About 74% of the population derives their income by working in the private sector and through self-employment.

Permanent houses account for over 70% of the houses in the district. Close to 70% of the houses are built with tiled roof and cement floors and have water-sealed toilets. About 40% of the houses have access to pipe-borne water supply and 35% get drinking water from a protected well situated within the premises or in close proximity. Close to 80% of the houses are owned by a member of the family. Brief information on the socio-economic conditions in the two districts is presented in Table 4.12.

Page 50 Health Facilities: State sector is the main source of health care for the people in these districts. Curative services are provided through two teaching hospitals situated in the Kandy city, 2 base hospitals, 13 district hospitals, 7 peripheral units and 26 rural hospitals. Well-organised preventive health services are provided through a network of institutions staffed by medical officers (MOH) and field staff. Infant mortality of 15 per 1000 live births recorded in the district is slightly higher than the national average. Maternal deaths of 8 per 100,000 live births, is less than half the national average. Immunisation coverage of children at the age of five years is around 86% is also comparable with the national average.

Education Facilities: Total number of schools operating in the district is 719 of which 647 are government schools. Average number of teachers per school and pupils per school are around 19 and 400 respectively. Pupil/teacher ratio is around 21. These indicators are very close to the national averages.

Table 4.7 - Socio-economic Conditions in the Kandy District Kandy Total population (2002) 1,272,463 Households (estimated) 254,493 Literacy rate (as % of population over 10 years age) 91% % of population that had: No schooling or attended only Grade 1 6.9% Passed Grade 1-5 21.4% Passed Grade 6-10 39.0% Passed GCE(O/L) 19.2% Passed GCE(A/L) 9.8% Unemployment rate (unemployed as % of economically active) 9.8% Employment sector: Government /semi-government service 23.2% Private sector 45.2% Self-employed /unpaid family worker 29.5% Source: Census of Population and Housing 2001

4.1.5 Socio-economic Conditions along 132 kV Transmission Line for Naula In and Out Connection As this short transmission line of length 0.5km only is located adjacent to Naula GS, the socio economic conditions along this line are covered under the same topic for Naula GS in clause

Page 51 5 COMPLIANCE WITH POLICIES, LEGAL REQUIREMENTS AND PROCEDURES

5.1 Sri Lanka Legal Requirements and Procedures

5.1.1 Environmental Acts and Regulations

National Environment Act No 47 of 1980 established the Central Environmental Authority, and was subsequently amended twice as Acts No 56 of 1988 and 53 of 2000. The above acts of parliament and regulations made under the act from time to time are legally enforced in Sri Lanka.

The procedure for application for a license has been established as the National Environmental (Protection and Quality) Regulations No 1 of 1990. These regulations specify the quality limits for the discharge of effluents from industrial and other activities. National Environment (Procedure for the Approval of Projects) Regulations No 1 of 1993, established the project approving agencies and the list or prescribed projects for which a prior Environmental approval (EIA/IEE) is mandatory. The list of industries/operations for which such an Environmental approval is required have been established by the Amended Regulations published in year 2000 (Procedure for Approval of Projects).

Noise control regulations and standards have been stipulated under the National Environmental (Noise Control) Regulations No 1 of 1996.

5.1.2 Electricity Act and Regulations Electricity Act of 1950 as amended from time to time, and the Land Acquisition Act of 1950, as amended from time to time, provide the legal basis to acquire land, if required for any project in the electricity sector.

5.1.3 Involuntary Resettlement Policy of Sri Lanka

Involuntary land acquisition in Sri Lanka is carried out under the Land Acquisition Act of 1950 and its amendments. However, as it did not have adequate provisions for full social and economic rehabilitation of the people to be resettled, Sri Lanka has adopted a National Policy on Involuntary Resettlement (NIRP)9, which requires a resettlement plan to be included in the approval process, if any project affects more than 20 families. The policy assigns the overall responsibility of its implementation to the Ministry of Land Development, with the project approving agencies and the Central Environmental Authority too being assigned responsibilities of evaluation and implementation.

In addition to the NIRP, a cabinet decision has been adopted in 2006, (as amended in 2007) specifically for the payment of compensation for families affected by land acquisition for power sector development projects and works connected with electrical undertakings. As stated earlier, no involuntary resettlement is foreseen in this project. However in case any

9 Sri Lanka National Involuntary Resettlement Policy, Ministry of Environmental and Natural Resources, Ministry of Lands and Central Environmental Authority, May 2001. See www.adb.org/Resettlement/nirp_2001.pdf

Page 52 involuntary resettlement becomes unavoidable, compensation would be paid in accordance with the NIRP and the Cabinet Decision of 2006 (amended in 2007).

5.1.4 Environmental Approval Procedure for Transmission Lines

As all the transmission lines to be built under this project except the short in and out connection at Naula GS will be operating above 50 kV and longer than 10 km, each one would be a prescribed project under the National Environmental Act. Approval has already been granted by CEA for the said four transmission lines in this project

5.2 ADB Policy on Involuntary Resettlement

The original resettlement and compensation plan complies with ADB policy on Involuntary Resettlement (1995), Handbook on Resettlement: A Guide to Good Practice (1998), Policy on Indigenous Peoples (1999) and other social safeguard policies designed to protect the rights of the affected persons and communities. This updated resettlement and compensation plan also complies with ADB Safeguard Policy Statement 2009.

5.2.1 ADB’s Involuntary Resettlement Policy

ADB’s policy requires:

(i) Avoiding or minimising adverse project impacts where possible (ii) Consulting with affected people in project planning and implementation, including disclosure of the resettlement plan and project-related information (iii) Payment of compensation for acquired assets at the market/replacement value (iv) Affected persons to be entitled to receive assistance to restore income and livelihood at pre-project standard, and all vulnerable affected persons are entitled to receive additional assistance to improve their income and livelihood (v) Resettlement assistance to affected persons, including non-titled persons (informal dwellers, squatters and encroachers) (vi) Affected persons to be integrated economically and socially into their host communities, if relocated. (vii) Affected persons’ social and cultural institutions to be safeguarded and supported. Common properties and facilities to be restored; (viii) Compensation and rehabilitation programs to be carried out with equal consideration for women and men; and (ix) An income restoration and rehabilitation program to be implemented.

5.2.2 ADB’s Policy Elements Applicable to the Project

A comparison between the Sri Lanka Acts and Regulations, NIRP and ADB’s Resettlement Policy is provided in Table: 5.1.

Table 5.1 - Comparison of Sri Lanka Involuntary Resettlement Policy and ADB Policy

Policy Element Sri Lanka ADB Comments

Page 53 Policy Element Sri Lanka ADB Comments 1. Resettlement must be avoided wherever possible; and if   unavoidable it should be minimised 2. Affected persons must be compensated to replace their lost assets and to   restore/improve their living standards 3. Affected persons should be fully involved and consulted in the planning   and implementation of resettlement 4. Compensation for lost assets must be on the basis of replacement cost   5. Transaction and   transition costs 6. Wherever feasible land should be an option for compensating loss of land   7. An Resettlement Plan A short resettlement plan is should be prepared in Sri Lanka Policy requires a  however, prepared for this project. every instance where detailed plan if the families involuntary resettlement resettled exceeds 20 occurs 8. The resettlement plan must be revealed to the affected people before   finalization 9. Application of policy In all cases where involuntary In all cases where ADB has three categories of impact: resettlement occurs involuntary A (Significant) where 200 or more resettlement occurs people experience major impacts; B (Not Significant) where impacts are not deemed significant (less than 200 persons affected) and C where no involuntary resettlement impacts are foreseen. 10. Entitlements under the Clause 4 of the NIRP defines Each impact must policy the entitlements for land, be defined and structures and income would appropriate be at replacement costs, paid entitlements promptly inclusive of assigned on the transaction costs. basis of the basic principles of replacing lost assets and restoring livelihoods 11. Recognition of untitled NIRP states that affected persons persons such as squatters who do not have documented title and encroachers X  to land should receive fair and just treatment. However, if no title is held, compensation for land-use cannot be paid, but all other entitlements such as crop damage and relocation expenses will be paid.

Page 54 Policy Element Sri Lanka ADB Comments 12. Surveys and census NIRP requires survey findings to required be disclosed to the affected persons   with a view to inviting objections and suggestions 13. Social networks and cultural links should be   preserved 14. Recognition of vulnerable groups including indigenous   people and the poor 15. Grievance Redress NIRP requires a grievances to be Procedure handled through a system of   monitoring established by each project executing agency 16. Organization and NIRP requires a Resettlement Unit Management of to be established if the resettlement Resettlement   is significant 17. Common property resources should be replaced   18. All costs relating to resettlement and rehabilitation must be   borne by the project executing agency and included in project costs

Consistent with Government and ADB policy, this resettlement and compensation plan will apply to all elements of this project. This will ensure that all persons affected by land-use restrictions and permanent or temporary loss of productive agricultural output, will be eligible for appropriate compensation. In an extreme case, if a household or other building has to be relocated, full compensation will be paid.

6 PUBLIC CONSULTATION AND INFORMATION DISCLOSURE

6.1 Grid Substations to be Augmented

The property of GSs to be augmented is owned by CEB and each location has a presently operational GS. Once the necessary approvals are obtained from the Local Authority, no formal public consultation is required owing to the fact that all new construction and operations are limited to the perimeter of the existing GSs owned by CEB and no resettlements are caused by any such developments.

If the members of public require information about the construction work planned or activities related to construction, they will be invited to make a request to CEB if it involves clarifications on the extent of work that is likely to affect the public, especially the owners of lands adjacent to the GS. Any further public consultation, if required, would be arranged and presided by the Divisional Secretary (DS) upon a written request or objection from the public on any aspect related to the project. CEB would be providing the information to the concerned members of public, as directed by the DS.

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6.2 Rights-of-Way of Transmission Lines

6.2.1 Preliminary Work Conducted

CEB design engineers have initially established several possible alternative routes on a topographical map of the scale 1:50,000. In selecting alternatives, care is taken to avoid areas with significant residential or commercial land-use, and to avoid environmentally sensitive areas such as wildlife sanctuaries and protected areas. The preferred routing of the line is always through areas of low-grown agriculture, particularly paddy and tea, and through “chena type” land, where crops are grown in rotation. In the selection of alternative routes maximum efforts were made to minimise the route length through forests in the Habarana- Valachchenai line, and also the other lines.

The width of the corridor for the 132 kV lines will be 27 meters.

A preliminary walk-over survey was conducted, and thereafter, CEB transmission design staff including design engineers examined the ground realities with regard to impacts on land, buildings vegetation, and options available to minimise the impacts. Line corridors have been further improved to minimize socio-economic impacts after detailed site inspections and route surveys. This transmission line project is presently at the stage of being finalised with regard to the routing.

6.2.2 Sri Lanka Environmental Approval Process

The first step in the approval process is for Central Environmental Authority (CEA) to appoint a Project Approving Agency (PAA), which is typically a Ministry or a Government Department. A Project Approving Committee (PAC) is established by the PAA, which includes the Divisional Secretaries of all the Divisions traversed by the line, and officials from the relevant state departments and regulatory agencies (such as Department of Forests) and the regional offices of CEA. The DSs will act as the representatives of the public affected by the project. Minutes of PAC meetings are recorded, and circulated to all members of the committee.

The PAC in their deliberations, and based on the guidelines provided in the regulations, would specify whether the project would require an Initial Environmental Examination (IEE) or a more comprehensive Environmental Impact Assessment (EIA). Accordingly, a scoping committee is appointed, which may include additional experts in the specific fields of study which the PAC would consider to be important in the context of the project, to prepare the TOR for the IEE/EIA. Then the IEE/EIA is conducted by CEB in accordance with the TOR provided by the scoping committee.

In considering the IEE/EIA report for approval, the PAA conducts site visits and stakeholder consultations. Typical participants at these site visits would include the PAA/scoping committee members, the Grama Niladharis (village leaders) of each village traversed by the line, who would represent the public in each village, and the field officers of all the relevant government agencies. Non-governmental agencies and other informal groups such as farmer

Page 56 organisations would also be invited on the recommendation of the officers, as required. During the field visit, all major issues highlighted in previous deliberations and the issues brought to the notice of the PAC during the visit are documented. Minutes are circulated among all the participants. The field visit is immediately followed-up by a site meeting, where certain decisions are made by the PAC with regard to the proposed line. Typical examples are the deviation of a section of the line considering the issues highlighted during the approval process, and relocation of a tower position from a small block of land, which would otherwise make the block of land unusable. Other special situations may include the deviation of a section of the line to avoid a recently-planned housing scheme which was not included in the maps and not noticed during preliminary visits by CEB officials, as construction has not started yet.

The PAA and the relevant officers may make more than one field visit either for the same location or different locations along the line route, to adequately cover the issues highlighted in the IEE/EIA and issues directly brought to the notice of the committee by that time.

Thereafter, the PAC would either decline approval, or would issues the approval, subject to conditions. In case of EIA process, the EIA report is kept open for public comments (announced through newspapers) for a period of one month, and CEB would be required to respond to the written comments from the members of public (which can include comments from NGOs, community-based organisations and institutions, as well) to the satisfaction of the PAC. There is no requirement to open the report for public comments, if the process is IEE.

As now, CEB has gone through all the said steps, and IEEs have been conducted for four new transmission lines out of five which falls under the category of ‘Prescribed Projects’ . Currently, all the four lines have been approved by CEA10.

6.2.2.1 Main Results of Public Consultation

Subproject 2

The environmental approval process has been completed, and the public consultations have been already completed for subproject 2, and the minutes of the relevant field visits/meetings/discussions and the attendance sheets are attached as Annex 1 & 2.

Subproject 3

Among the transmission lines included in subproject 3, the environmental approval process including public consultations for all transmission lines have been completed by now.. The Environmental Approval was granted and the transmission line traces (mentioned in this RP) was finalized subsequent to the said public consultation. The minutes of the relevant field visits/meetings/discussions and the attendance sheets are attached as Annex 3 and 4. Public consultation / field inspection for proposed Galle – Matara transmission line has been held on 28th and 29th February 2008. The minutes of the meeting / discussion and

10 Habarana – Valachchena was approved on 26 August 2010; Puttalam-Maho was approved on 2 August 2010; Ukuwela Pallekele was approved on 25 November 2009 and Galle- Matara was approved on 18 January 2010

Page 57 attendance sheet is attached as Annex 5 & 6 respectively. A summary of the main issues discussed and agreed are given below.

 Soil excavated from the pits for the tower foundations in paddy fields should be removed away in order to avoid adverse effects to the top soil.  Proposed line route crosses the southern highway in more than three places and adequate clearance has to be provided to the highway with the consultation of the Road Development Authority.  Proposed line route passes through Kirelakelle area for a short distance (where the existing Matara grid substation is already located), which may be declared as a protected area in future by Dept. of Wildlife Conservation. Views of Department of Wildlife Conservation has to be obtained in construction of the line.

A Although a number of issues raised by the stakeholders/DSs/Grama Niladaris etc., has been discussed and agreed upon by CEB(as highlighted in the minutes), no changes to the selected route was proposed.

Public consultation / field inspection for proposed Habarana – Valachchanai transmission line has been held on 24th March 2008. The minutes of the meeting / discussion and attendance sheet is attached as Annex 7 & 8 respectively. A summary of the main issues discussed and agreed are given below.

 Divisional Secretary – Welikanda and GN – Manampitiya suggested to deviate a section of the line in order to avoid it passing through the Welikanda town. A deviation to relevant section, avoiding Welikanda town is suggested by CEB, to which all the participants have agreed. The line route with the proposed deviation is shown in Annex 9.  It was revealed that the proposed line traverse parallel to the existing HT line, which is closer to the runaway of Hingurkgoda Air strip belonging to the Air Force. CEB officers explained that although new line it is parallel to the existing line, it will be further away to the Air Port than the existing line. However, it has been agreed that the Air Force should be informed and the necessary steps should be taken to get their approval by the CEB, as there may be a proposal to expand the airstrip.  It was revealed that proposed line crosses the railway line in three locations and the officers from Railway Department has to be consulted in the construction of line. A permanent cradle guard/mesh will be installed by CEB under the transmission line at each point it crosses the railway.

All the participants including DSs and GNs have given their consent to the proposed transmission line route. After the detailed site surveys, few further changes were done to the line route as illustrated in section 2.3.3 and route maps. Subsequent changes were incorporated to the final line route submitted to the CEA and have been accepted and approved.

6.2.3 Formal Notices and Route Confirmation

Local-level public consultations and information disclosure is conducted continuously during the preliminary survey, as explained earlier.

Page 58 As the next step, the detailed route survey has been done to come up with further measures possible to bring down damages to land and property and disturbance to all concerned. For the purpose of entering lands for the purpose of the detailed survey, a written communication is issued to all land-owners, as required by Clause 15(1) of the Electricity Act. The owners of land and buildings likely to be affected are then identified and the route of the line is surveyed and mapped. The village officers, the Grama Niladhari (GN) of all the villages along the route will be involved in this process, and would be the contact person to liaise between CEB and the land owners or other affected parties. If case of any significant public concerns are conveyed to CEB, meetings are organised between CEB design/survey staff and village residents, NGOs and other representative bodies (such as religious institutions, which generally serve as a meeting place), to provide information to the public, request their views and to address any concerns they have about the line(s) and the right-of- way.

Section 15-19 of the Electricity of No 19 of 1950 requires the owners of land and buildings affected to be formally informed and fully appraised about the line route and the likely impacts, and obtain permission to draw the line. Such land-owners (or other affected parties) are then issued with the notice in accordance with the provisions in the Electricity Act. This notice is commonly known as the D notice, in accordance with the Electricity Act. This notice elaborates the type of likely damages to each and every property along the line corridor. When land-owners cannot be identified, the D notice is prominently displayed on the affected land. Thus the D notice provides a means for comprehensive communication between CEB and affected parties. Trees to be removed and any buildings affected are identified with a marking.

Affected persons receiving a D notice having any objections to the proposed line route may submit written objections within 14 days from the date of the D notice to the relevant DS, and the procedure for resolving such objections is explained in section 9.2.2.

7 COMPENSATION, RELOCATION AND INCOME RESTORATION

Compensation for temporary land-use, including temporary loss of productive output and crop damages, and for long-term loss of vegetation and land-use restrictions, and evaluated based on the entitlement matrix given in Table 7.1.

Page 59 Table 7.1 - Entitlement Matrix

Nature of Application Definition of Entitlements Responsible Details Losses Entitle Person (s) Agency 1.0 Permanent Loss 1.1 Crops and Trees Loss of trees Trees and 1. Advance notice to harvest crops CEB/ Compensation for lost and crops crops in Title Holder 2. Net value of crops where Divisional assets transmission /share cropper/ harvesting is not possible Administration line ROW and tenant/ untitled 3. Compensation at fair rate based & Concerned tower footings residents of the on the land productivity and age of Department Compensation at land in which the the trees market value based on trees and crops 4. Rights to all other resources from productivity and age of are located privately owned trees (timber, trees. firewood) 5. Compensation shall be divided Compensation prices between the owner and farmer will be finalised with according to the sharecropping active participation of arrangement affected persons or their 6. For land under tenancy, representatives. compensation for crops shall be paid to the tenant 2.0 Restricted Usage 2.1 Private/Public Land Restricted use Restricted use Title Holder Compensation for restricted land usage CEB/ Compensation for land of Land of land due to ascertained as per the land use type. Divisional use restrictions will be area covered Special considerations to owners of Administration finalised with active in tower small plots of land relative to the land & Concerned participation of the footings (if occupied by a tower footing, where Department affected persons or their located in compensation value may be even up to representatives small plots of the purchase value of the land occupied land) by the tower footing.

Page 60 Nature of Application Definition of Entitlements Responsible Details Losses Entitle Person (s) Agency

3.0 Temporary Occupation 3.1 Private/Public Land Temporary Temporary Titleholder / Entitlement based on: CEB/ Compensation for losses loss/ loss of land in Tenant 1. Period of occupancy Divisional restoration of income disturbance/ the 2. Terms and compensation amounts as administration damages construction determined by the DSs. during area - 3. Compensation for material losses for construction/ Disturbance/ the duration of the temporary stringing work Damage occupation period caused to 4. Compensation for other disturbances property and damages caused to property 3.2 Crops and Trees Loss of crops Trees and Person(s) who 1. Advance notice and harvesting crops CEB/ Compensation for losses and trees crops cultivates the 2. Net value of crops where harvesting Divisional during damaged land, with or is not possible Administration construction during without title 3. Compensation at market value based construction on the land productivity and age of of tower the trees footings, 4. Compensation shall be divided material between the owner and farmer transport and according to the sharecropping line stringing arrangement 5. For land under tenancy, compensation for crops shall be paid to the tenant

Page 61 Nature of Application Definition of Entitlements Responsible Details Losses Entitle Person (s) Agency 4.0 Public Utilities Telephone, Permanent or Utility owner 1. Advance notice and estimate CEB to pay, Pay the total estimated water, temporary (Govt authority obtained to shift utilities or make relevant utility cost of shifting/repair roadways and removal or or private good the intended damage. agency to make similar public damage company/individ 2. Payment of the cost of shifting prior good the utilities ual to commencement of work. shifting/repairs 3. Any unforeseen damage during construction (including damages to roadways)

Note : While no indigenous people are affected by any project component, in case of special need of assistance arise in case of vulnerable people (families headed by women/disabled persons or owning very small plots of land) affected by the project, and if they make submission of their grievances to the relevant DS, special consideration can be made in the compensation for them as per the assessment of DS.

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7.1.1 Compensation Payments for Crop Damage As stipulated in the Electricity Act, compensation for removed or pruned trees will be paid at a fair market rate to the respective land owners based on tree type, its age and expected income from the tree. The assessment of the value will be made by the DS. Cleared vegetation and any timber will be made available to the land-owner for his own use, and will not be acquired or used by CEB or any other Government agency.

7.1.2 Land Use Restrictions

There will be no relocation or compulsory resettlement of people under any of the elements of this project, although slight land use restrictions may result in the locations where tower foundations are erected, each of which has an area of approximately 10m2, spaced between 200-400 meters. The area covered by the tower footing, if placed on a private land, can continue to be used by the land-owner and CEB would not be making an outright purchase of the land. Compensation will be paid according to the Electricity Act, as assessed by the DS, for the land-use restriction at each tower footing.

There will be special considerations when a tower footing has to be located in a small block of land. CEB will initially examine all possible alternatives to move the tower footing away from the small block of land. However, when this is not possible, CEB will award the best compensation as per the assessment of DS, which could be even up to the land value of the area covered by the tower footing.

Along the right-of-way of the transmission line, no new buildings above the ground floor would be allowed. However, if there are houses/buildings including multi-storey buildings in the line route already in place or approved by the Local Authority for construction, the design of the transmission line and the towers will be adjusted to ensure that the stipulated safety clearances will be maintained with such buildings.

7.1.3 Impacts on Seasonal Agriculture Action will be taken to plan the timing of construction activities including transportation of equipment and tower parts on agricultural lands to avoid any disturbances/damages of field crops, to the maximum practicable extent. However, when this cannot be achieved and if an agricultural land has to be crossed during a period when crops are cultivated, a crop disturbance allowance will be paid to the respective landowners or tenants to compensate for the loss affected, as assessed by the DS.

7.1.4 Temporary Access Roads Although the line construction activities will rely on many existing roads, certain new access roads/tracks may be built to reach tower locations, if it is absolutely necessary. Generally, maximum efforts will be made to manually transport equipment in knocked-down state to tower locations, to avoid building new access roads. Building materials to such locations would also be hand-carried wherever possible. These 3-4 m wide temporary access roads will be sited carefully to minimize the disruptions to paddy farming and other operations. These temporary access roads will be completely removed after the construction, unless the DS makes a special request to retain them on public interest for future use.

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7.1.5 Relocation

As none of the project elements will cause involuntary relocation, there are no relocation and income restoration issues related to this project at this stage. If such issues arise, they will be handled as stated in this plan.

8 IMPLEMENTATION SCHEDULE

CEB desires to implement the Clean Energy and Access Improvement Project expeditiously owing to the urgency of capacity additions required in the national grid. Table 8.1 shows the planned activity schedule.

Table 8.1 - Implementation Schedule

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9 INSTITUTIONAL FRAMEWORK, GRIEVANCE REDRESS AND MONITORING PLAN

9.1 Institutional Framework

The project will be designated as the Clean Energy and Access Improvement Project, and it will be managed by a Project Director, who will be a Senior Engineer. There will be Project Managers for each of the three subprojects, and project engineers for each element (or groups of elements) within each subproject, as the requirement warrants. CEB, through the Project Director and his/her staff, will bear full responsibility for ensuring that the Project complies with best environmental practices and would award compensation for affected parties in a timely manner, and in meeting the mitigation and monitoring requirements described in this resettlement and compensation plan during construction.

The Project Manager of each subproject would be responsible for the implementation of the resettlement and compensation plan. CEB would consult all stakeholder agencies such as farmer organizations, community-based organisations, Divisional Secretaries, Department of Agriculture and Agrarian Services, Department of Irrigation, Central Environmental Authority and Ministry of Power and Energy. Table 9.1 shows the summary of institutional responsibilities and Table 9.2 shown the responsibilities in each task of the implementation process..

Table 9.1 - Institutional Responsibilities in the Consultation/Compensation Process Institution Responsibilities Ceylon Electricity Board  Identification of land and properties affected  Serving appropriate notices according to provisions in the Electricity Act and the National Policy on Involuntary Resettlement  Participation in inquires held by DS and/or other relevant authorities.  Making compensation payments Divisional Secretaries  Accepting and redressing grievances  Conduct appropriate inquiries as provided in the Electricity Act and NPIR  Authorisation or prohibition of right-of-way in dispute  Valuation of all damages and authorisation of compensation payment Farmer organisations, community-  Provide collective opinions based organisations and affected  Written submissions to convey grievances individuals/families Ministry of Power and Energy and  Monitoring of public consultation and Central Environmental Authority grievance redress process

Page 65 Table 9.2 - Project Activities and Institutional Responsibilities

2008 2009 2010 Institutional Responsibilities and Tasks with Transmission Lines Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 respect to Resettlements and Compensation Issues Walk-over surveys, route confirmation CEB Cross-check map based survey, avoid potentially difficult locations for towers and routes requiring excessive tree removal. Sri Lanka Env. Approval Process CEB Make application, assist PAA and PAC, provide information, prepare IEE/EIA CEA Appoint PAA, ensure compliance with regulations, guide PAC. PAC Review information submitted by CEB, conduct site visits and stakeholder meetings, issue approval to build Detailed Route Survey CEB Prepare detailed layout of line, tower locations, examine locations with least disturbance, prepare maps and plans. Issue of D-notices to affected parties CEB Issue D-notices on the basis of Electricity Act, provide information to affected parties and DS. DS Examine D-notice content against maps NGOs Make submissions on the impacts to CEB and DS, and to the PAA in the IEE process. Public Consultation/ Grievance redressal DS Receive complaints on D-notice, comduct inquiries after summoning both CEB and the complainant, expeditiously resolve issues, convey decisions to CEB and affected party, valuation of damages

CEB Engage members of public in continuous consultants. Compensation Payments DS Send approved compensation list to CEB, Civil works secure CEB finances and pay the affectd Tower Erection parties. Stringing CEB Timely payment of compensation for Commissioning approed damages. Restoration of temporary structures, roads CEB Submit claims on temporary damages to CEB's internal management, secure approval and make timely payments. Internal Monitoring of Resettlement Plan CEB Minitor the compensation plan and the specific elements, ensure timely availability of information to affected parties, respond to complaints from sites, examine impacts previously unforeseen.

External Monitoring of Resettlement Plan CEA Ensure compliance with conditions in the IEE and the approval to proceed to construction.

Informal public consultations were initiated during the walk-over survey, to examine the preferred line route that leads to the minimum disturbance. Thereafter, formal public consultation was carried out during the environmental approval process.

More specific public consultation commences when the D-notices are issued to parties whose lands will be subjected to restrictions owing to tower footings being placed on their lands, and to parties whose property would be within the proposed transmission corridor.

The Divisional Secretary (DS) and the Grama Niladhari (GN) are involved in the process of identifying land owners affected and in approving compensation to be paid to them. Section15-19 of the Electricity of No 19 of 1950 requires the owners of land and buildings affected to be informed and fully appraised about the line route and the likely impacts, and obtain permission to draw the line. Such land-owners (or other affected parties) are then issued with the notice in accordance with the provisions in the Electricity Act. This notice is commonly known as the D notice, in accordance with the Electricity Act. This notice elaborates the type of likely damages to each and every property along the traverse. When

Page 66 land-owners cannot be identified, the D notice is prominently displayed on the affected land. Thus the D notice provides a means for comprehensive communication between CEB and affected parties.

In the field, trees to be removed and any buildings affected are identified with a marking as and when D notices are issued.

9.2 Appeal Procedure to Address Grievances

9.2.1 Prior to Project Implementation

Affected persons receiving a D notice having any objections to the proposed line route may submit written objections within 14 days from the date of the D notice. These objections are received by the Divisional Secretary (DS), who would then hold an inquiry within two weeks upon expiry of the 30-day period, in the presence of the affected party (or parties) and CEB officials. The affected parties and CEB are provided an opportunity to explain their position on the issues, and in most cases, an amicable settlement is reached through this consultation process. The DS would be the final authority to give a ruling on an issue either to proceed with activities or prohibiting activities, if no amicable settlement can be reached. Such rulings may be challenged in a court of law, where the court would issue the final decision.

The DS also reviews the compensation plan, and approves the sums to be paid for trees, buildings affected (if any) and the land-use restrictions at tower footings. The felling of trees will be the responsibility of the owner and any timber would remain the property of the owner, in spite of the compensation that would have been awarded.

9.2.2 During Project Implementation

CEB accords the highest priority to establish a mechanism for accommodating public complaints and comments, both from the affected parties and others, throughout the project implementation period. The first level of contact for members of public or the affected parties would be the project engineers. All representations will be received by the project engineers, and communicated to the DS if the issue warrants intervention or inquiry by Government officials. If the issue requires issuing instructions to the contractors, these will be communicated to the contractors. In general, most public interactions would be on construction-related issues, which are temporary but nevertheless require attention, such as the impacts on minor access roads when heavy equipment or gravel is transported regularly. In case of the transmission line, issues related to tower locations and clearance of tress will continue to be referred to CEB from time to time, which will be resolved through consultation with the affected parties. Temporary obstruction of roadways during stringing of conductors, are typical concerns raised by the public.

If any matter cannot be resolved by the project engineer, it will be referred to the Project Manager in charge of the sub-project, and if required, will be referred to the Project Director.

During project implementation, CEB would issue written instructions to the contractor(s) in items related to the environmental management plan, requesting compliance. CEB field staff

Page 67 will ensure that the contractors and his staff would comply with the instructions, in all work connected with the project, within the project site(s) as well as outside the immediate project siting areas.

9.3 Monitoring Plan

The Environmental Unit of CEB will coordinate all environment-related issues and resettlement-related issues, and the CEB will provide him the necessary manpower and financial resources for the same. The direct responsibility of implementing,

 provisions in this report,  conditions stipulated by the PAA/CEA in the approval for the project in terms of the National Environmental Act  orders issued by the DS with regard to land-use and compensation, and  the local authority regulations will lie with the Project Director, while the Environmental Unit will provide assistance and play a coordinating role in the process. Assistance of environmental experts will be obtained when necessary, to handle special issues, particularly those related to impacts on biodiversity on sensitive area.

The budgetary estimates for the implementation of this compensation plan are given in Table 9.3.

Table 9.3 - Cost Estimates for the Compensation Plan

Nominal Estimated Line Description line length compensation (km) (LKR million) 1 Galle-Matara 132 kV double circuit line 34 34 2 Habarana-Valachchenai 132 kV double circuit line, 100 50 single circuit stringing 3 Puttalam-Maho 132 kV double circuit, 42 21 single circuit stringing 4 Ukuwela-Pallekelle 132 kV double circuit line 18 9 5 Naula in and out connection 132 kV double circuit line 0.5 0.3 Sub Total 114.3 Contingencies (10%) 11.43 Total 125.73 Note: Estimated costs are only indicative.

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