Initial Environmental Examination March 2016 SRI: Supporting Electricity Supply Reliability Improvement Project Prepared by Ceylon Electricity Board, Ministry of Power and Renewable Energy, Democratic Socialist Republic of Sri Lanka for the Asian Development Bank. CURRENCY EQUIVALENTS (as of 8 March 2016) Currency unit – Sri Lanka rupee/s (SLRe/SLRs) SLRe1.00 = $0.00691 $1.00 = SLRs144.65 ABBREVIATIONS ADB – Asian Development Bank CEA – Central Environment Authority, Government of Sri Lanka CEB – Ceylon Electricity Board DC or D/C – Double Circuit DPR – Detailed Project Report DSD – Divisional Secretarial Divisions EA – Executing Agency EMoP – Environmental Monitoring Plan EMP – Environmental Management Plan EHV – Extra High Voltage GHG – Green House Gas GND – Gram Niladhari Divisions GoSL – Government of Sri Lanka GRC – Grievance Redress Committee GRM – Grievance Redress Mechanism IA – Implementing Agency IEE – Initial Environmental Examination LILO – Line-in-Line-out MPRE – Ministry of Power and Renewable Energy Government of Sri Lanka PAA – Project Approving Authority NARA – National Aquatic Resources Research & Development Agency PCB – Poly Chlorinated Biphenyl NEA – National Environmental Act PIU – Project Implementing Unit PMU – Project Management Unit PRDA – Provincial Road Development Authority PUCSL – Public Utility Commission of Sri Lanka REA – Rapid Environment Assessment ROW – Right of Way RP – Resettlement Plan SC or S/C – Single Circuit SF – Sulphur Hexafluoride SPS – Safeguard Policy Statement WEIGHTS AND MEASURES ha (hectare) – Unit of area km (kilometer) – 1,000 meters kV – kilovolt (1,000 volts) kW – Kilowatt (1,000 watts) MW – megawatt NOTES In this report, “USD” refers to US dollars. “SLRs” refers to Sri Lankan rupees This initial environmental examination 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 of this 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. TABLE OF CONTENTS EXECUTIVE SUMMARY 1 I. POLICY, LEGAL, AND ADMINISTRATIVE FRAMEWORK 4 A. Background 4 B. Sope of Work and Methodology Adopted 6 C. Applicable Environmental and Other Legislations 7 II. DESCRIPTION OF THE PROJECT 8 A. The Project 8 B. Component 1: Renewable Energy Development 8 C. Component 2: Reliability Improvement of the Medium Voltage Network 10 D. Component 3. Rural Electrification and Distribution Performance Monitoring 18 E. Component 4: Reactive Power Management in the Transmission System 19 F. Location 19 G. Size and the Magnitude of the Operation 31 H. Implementation Plan 37 III. DESCRIPTION OF ENVIRONMENT (BASELINE DATA) 39 A. Jaffna District 39 B. Trincomalee District 40 C. Puttlam District 42 D. Kurunegala District 45 E. Kegalle District 48 F. Ratnapura District 50 G. Galle District 53 H. Ampara District 58 I. Matara District 61 J. Monaragala District 64 K. Badulla District 68 IV. ANTICIPATED IMPACTS AND MITIGATION MEASURES 74 A. Environment Impacts and Mitigation Measures 74 B. Route Selection 74 C. Removal of Trees 76 D. Environmental Management Plan 80 V. ANALYSIS OF ALTERNATIVES 84 A. CEB’S Approach for Route Selection 84 B. Alternatives for Line Alignment 84 VI. INFORMATION DISCLOSURE, Consultation, and participation 87 A. Consultation Findings 88 VII. GRIEVANCE REDRESS MECHANISM 95 A. Awareness of Stakeholders 95 B. Grievance Redress Mechanism and PUCSL 95 VIII. ENVIRONMENTAL MANAGEMENT PLAN 99 A. Institutional Arrangements 99 B. Monitoring of Environmental Management Plan (EMP) 101 C. Environmental Management Plan Budget Costs 102 D. Critical Environmental Review Criteria 103 IX. CONCLUTION AND RECOMMENDATIONS 105 Annex 1: Applicable Environmental Policy and Procedures 107 Annex 2: Route Analysis for 33 kV lines 118 Annex 3: Locational Analysis for 33 kV Gantry based switching stations 123 Annex 5: Environment Management Plan (EMP) 158 Annex 6 Environmental Parameters and Periodicity for Environmental Monitoring Plan 167 Annex 7: Granting of Necessary Way leaves for Electricity Networks in Sri Lanka - Guidelines for Licensees, Divisional Secretaries and Landowners and/or Occupiers 169 Annex 8: Environment Monitoring Report 173 LIST OF FIGURES Figure 1: Map of Sri Lanka showing details of Subprojects in all Components 22 Figure 2: Mallawapitiya GS to Rathmalgoda 33 kV line- 16 km 23 Figure 3: Maho GS - Ma-Eliya 33 kV line (Location on topographic sheet) 24 km 24 Figure 4: Wimalasurendra GS to Maskeliya gantry (Location on topographic sheet) 10 km 25 Figure 5: Kegalle GS to Gevilipitiya 33 kV line- 11 km 26 Figure 6: Mahiyanana GS to Bibile 33 kV line - 30 km 27 Figure 7: Monaragala GS to Wellawaya 33 kV line- 34 km 28 Figure 8: Elpitiya- Mattaka 33 kV line- 11 km 29 Figure 9: Morawaka- Warukandeniya 33 kV line -18 km 30 Figure 10: Responsibility Hierarchy of PUCSL 96 Figure 11: Flow chart showing Grievance Redress Mechanism 98 Figure 12: Institutional Structures and Responsibility for Environmental Management Plan at CEB 100 LIST OF TABLES Table 1: State-owned Institutions in the Energy Supply Industry 5 Table 2: Regulatory and Facilitation Agencies 5 Table 3: Capacities of Each Generating Technology Used at Each Island 8 Table 4: Present Condition of Electricity Supply in the Islands 9 Table 5: Proposed Hybrid Renewable Energy Systems 9 Table 6: Subprojects for Reliability Improvement of the MV Network 11 Table 7: Proposed RE Schemes in each CEB Distribution Division 18 Table 8: Proposed LV Extensions 18 Table 9: Different Locations of Proposed Subprojects. 20 Table 10: Ownership Details Gantry Based Switching Stations 20 Table 11: Proposed RE Schemes in each CEB Distribution Division 36 Table 12: Proposed LV Extensions 36 Table 13: Overall Project Implementation Schedule 38 Table 14: Reserves in Jaffna District 40 Table 15: Name, Category and the Extent of Forest Reserves in Trincomalee District 42 Table 16: Name, Category and the Extent of Forest Reserves in Puttalam District 45 Table 17: Reserves in Kurunegala District 47 Table 18: Reserves in Kegalle District 50 Table 19: Reserves in Ratnapura District 52 Table 20: Reserves in Matara District 63 Table 21: Reserves in Badulla District 69 Table 22: Land Use Pattern in Badulla District 70 Table 23: Total Number of Trees to be felled for distribution subprojects 76 Table 24: Distance from WLS and National Parks for all subprojects 77 Table 25: Approximate distance of subprojects from sensitive receptors 77 Table 26: Environmental Impact Matrix 81 Table 27: Summary of final alternative taken for Project Consideration 85 Table 28: Public Consultations 87 Table 29: Constitution of Grievance Redress Committee 97 Table 30: Summary of Estimated Costs including for Environmental Monitoring Plan (million USD) 102 EXECUTIVE SUMMARY i. Asian Development Bank (ADB) is proposing to extend USD 118.8 million loan to Sri Lanka’s power sector for supporting electricity supply reliability improvement to Ceylon Electricity Board (CEB). The loan will focus on identifying the hybrid renewable energy (wind and solar) mini-grids in Analaitivu, Delft and Nainativu Islands in Jaffna peninsula, medium voltage network in ten administrative districts of the country, rural electrification schemes in sixteen districts, and renewable energy based pilot microgrid for evacuation of renewable energy (solar) projects and overall improvement of network efficiency. ii. The components of the Supporting Electricity Supply Reliability Improvement Project will consist of four components. Component 1: Renewable energy development 1.1 Hybrid renewable energy systems in small isolated islands 1.2 Productive energy use for small isolated islands and rural communities 1.3 Renewable energy based microgrid pilot project Component 2: Reliability improvement of the medium voltage network Component 3: Rural electrification and distribution performance monitoring Component 4: Reactive Power Management in the Transmission System iii. Hybrid renewable energy mini-grid systems have been proposed in three islands, Delft, Nainativu and Analaitivu, all located off the western coast of Jaffna peninsula. Delft Island, the largest of the three, approx 50 km2, situated about 10 km from mainland, is the second largest island situated within the territorial waters in Sri Lanka. The Delft National Park, 1846.28 ha, declared on 19th June 2015, by the Department of Wildlife Conservation for conservation of wild horses is situated in the southern part of the island and it occupies about 37% of the land area. The land identified for the hybrid system is about 800 m outside the National Park and belongs to the government. iv. Productive energy use for small isolated islands and rural communities will promote and strengthen energy-based livelihoods through access to electrical appliances and technologies, emerging with the availability of electricity for production and marketing of traditional crafts and other similar local manufacturing activities. v. Renewable energy based microgrid pilot project will establish and examine its feasibility as an extension to the conventional utility distribution system, (ii) catalyse adoption of distributed generation as a means of improving network efficiency