Environmental Impact Assessment : Project 1 Moragolla Hydropower Plant Environmental Main Report June 2014 SRI LANKA: Green Power Development and Energy Efficiency Improvement Investment Program Prepared by Ceylon Electricity Board, Ministry of Power and Energy, Democratic Socialist Republic of Sri Lanka for the Asian Development Bank This Environmental Impact Assessment 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. CEYLON ELECTRICITY BOARD MORAGOLLA HYDROPOWER PROJECT ENVIRONMENTAL AND SOCIAL STUDIES VOLUME 1. ENVIRONMENTAL MAIN REPORT Nippon Koei Co. Ltd., 4 Kojimachi 5-chome, Chiyoda-ku, Tokyo 102-8539, Japan ABBREVIATIONS AND ACRONYMS ADB Asian Development Bank AP Affected Persons asl Above Sea Level BOD Biochemical Oxygen Demand CBO Community-Based Organisation CC Construction Contractor CDM Clean Development Mechanism CEA Central Environmental Authority CEB Ceylon Electricity Board CECB Central Engineering Consultancy Bureau CPUE Catch Per Unit Effort CR Critically Endangered DD Detailed Design DO Dissolved Oxygen DPP Disaster Preparedness Plan DWC Department of Wildlife Conservation EA Executing Agency EIA Environmental Impact Assessment EN Endangered EMP Environmental Management Plan EMoP Environmental Monitoring Plan EPL Environmental Protection License FD Forest Department FIRR Financial Internal Rate of Return FS Feasibility Study FSL Full Supply Level GoSL Government of Sri Lanka GRC Grievance Redress Committee GRM Grievance Redress Mechanism GS&MB Geological Survey and Mines Bureau HPP Hydropower Project ID Irrigation Department IEE Initial Environmental Examination IUCN International Union for Conservation of Nature LA Local Authority LB Left Bank MASL Mahaweli Authority of Sri Lanka MC Municipal Council MDF Medium-Density Fibreboard MHPP Moragolla Hydropower Project MOL Minimum Operating Level MOU Memorundum of Understanding NBRO National Building Research Organisation NEA National Environment Act NIRP National Involuntary Resettlement Policy NT Near Threatened NTU Nephelometric Turbidity Units NWS&DB National Water Supply and Drainage Board NZG National Zoological Gardens OHSP Occupational Health & Safety Plan OSF Other State Forest PAA Project Approving Agency PAP Project affected person PD Project Director PMO Project Management Office PMF Probable Maximum Flood PP Project Proponent PS Pradeshiya Sabha PVC Poly-Vinyl Chloride RB Right Bank RC Reinforced Concrete RDA Road Development Authority RoW Right of Way RP Resettlement Plan SIA Social Impact Assessment SPS Safeguard Policy Statement TEC Technical Evaluation Committee ToR Terms of Reference TL Transmission Line TSS Total Suspended Solids UC Urban Council UDA Urban Development Authority UNFCCC United Nations Framework Convention on Climate Change WMP Watershed Management Plan WMS Water Management Secretariat WEIGHTS AND MEASURES GWh gigawatt hour ha hectare Hz hertz km kilometre km2 square kilometres kV kilovolt (1,000 volts) kW kilowatt kWh kilowatt hour m metre m2 square metre m3 cubic metre m3/km2/y cubic metres per square kilometre per year m3/s cubic metre per second mm/s millimetres per second masl metre above sea level MCM million cubic metre MW megawatt MVA megavolt ampere rpm revolutions per minute Moragolla Hydropower Project, Environmental and Social Studies June 2014 Volume 1: Environmental Main Report ii PREFACE This document is the first of five volumes, which together describe the environmental and social studies conducted in relation to the Moragolla Hydropower Project (HPP) in Sri Lanka. These studies were conducted between 2009 and 2014 on behalf of the Project Proponent, The Ceylon Electricity Board (CEB). The studies comprise: a) an Environmental Impact Assessment (Local EIA) prepared according to the Sri Lankan National Environment Act (NEA) (1980, amended 1988), which was approved by the Mahaweli Authority of Sri Lanka (MASL) in August 2013; b) Final Reports of 14 Additional Studies conducted in 2013 to provide data to update the Local EIA and allow a re-evaluation of project impacts and mitigation; c) an Environmental Main Report and Environmental Management Plan (EMP) prepared to upgrade the Local EIA to comply with the ADB Safeguard Policy Statement (SPS) (2009); and d) a Social Impact Assessment and Resettlement Plan prepared according to Sri Lankan law and the ADB SPS. The report of these studies comprises five volumes, which are arranged as follows: Volume 1: Environmental Main report (2014) - this document; Volume 2: Environmental Management Plan (2014); Volume 3: Social Impact Assessment and Resettlement Plan (2014); Volume 4: Additional Environmental Studies (2013); Volume 5: Local Environmental Impact Assessment (2012). Volumes 1-3 represent the final assessment of the environmental and social impacts of the Moragolla HPP, prepared in compliance with national law and ADB policy. These documents incorporate all relevant results and data from the earlier Local EIA and the Additional Environmental Studies; and Volumes 4 and 5 are provided only to allow access to all data relating to the updated environmental and social impact assessment if needed. Moragolla Hydropower Project, Environmental and Social Studies June 2014 Volume 1: Environmental Main Report iii CONTENTS Page PREFACE iii EXECUTIVE SUMMARY - VOL 1 and VOL 2 xii I. INTRODUCTION 1 II. APPROACH AND RATIONALE 3 III. POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK 5 A. Environmental Protection and Management 5 B. Environmental Impact Assessment 6 C. Environmental Protection License 7 D. Multinational Agreements 9 IV. DESCRIPTION OF THE PROJECT 11 A. Project Location and Overall Design 11 B. Project Components 11 C. Design Changes 26 D. Project Cost 26 E. The Construction Process 27 F. Operation of the Completed Scheme 39 V. ANALYSIS OF ALTERNATIVES 45 VI. BASELINE CONDITIONS, ENVIRONMENTAL IMPACTS AND MITIGATION 49 A. Approach 49 B. Recommendations of Local EIA study: Physical Environment 56 C. Hydrology and Environmental Flow 61 D. Water Quality 72 E. Groundwater 82 F. Land-use and Landscape 85 G. Geology, Topography and Natural Hazards 90 H. Air Quality 94 I. Noise and Vibration 103 J. Aquatic Ecology 107 K. Terrestrial Ecology 134 L. Recommendations of Local EIA study: Human Environment 158 M. Physical Cultural Resources 163 N. River Users and Dam Safety 166 Moragolla Hydropower Project, Environmental and Social Studies June 2014 Volume 1: Environmental Main Report iv VII. INFORMATION DISCLOSURE, CONSULTATION AND PARTICIPATION 176 A. Consultation and Disclosure during Local EIA Study 176 B. Consultation and Disclosure during Environmental Main report Study 180 C. Future Consultation and Disclosure 185 VIII. GRIEVANCE REDRESS MECHANISM 186 A. Rationale 186 B. Complaints Management 187 C. Grievance Redress Committee (GRC) 188 D. Institutional Arrangements for GRM 189 APPENDICES 190 A. Appendix 1: Gap Analysis - 2012 Local EIA and 2009 ADB SPS B. Appendix 2: MOU to be signed by CEB and MASL C. Appendix 3: Expert report on Labeo Fishrie by Ramani Shirantha D. Appendix 4: Attendance of 1st Stakeholder Meeting E. Appendix 5: Attendance of 2nd Stakeholder Meeting F. Appendix 6: Attendance of 3rd Stakeholder Meeting G. Appendix 7: Qualification and Experience of Experts used to undertake the biodiversity Impact Assestment H. Appendix 8: Temporary E-flow Discharge during Reservoir Impounding Moragolla Hydropower Project, Environmental and Social Studies June 2014 Volume 1: Environmental Main Report v LIST OF FIGURES Figure 1: Location of the proposed Moragolla Hydropower Project, and other existing dams and HP stations in the vicinity Figure 2: Location of the project components and other construction and disposal areas Figure 3: Plan view of the proposed dam, spillway, and headrace tunnel intake and micro- hydro station Figure 4: Typical sections through the dam Figure 5: Plan and profile of the headrace tunnel (downstream), surge tank, penstock and tailrace outfall Figure 6: Section through the power house Figure 6(a) Proposed causeway road from Kotmale HPP Figure 6(b) Proposed Diversion road in the inundation area Figure 7: Proposed construction programme Figure 8: Locations of construction sites and related activities Figure 9: Estimated average operating hours per day for the Moragolla HPP Figure 10: Predicted monthly water release from the dam (including E-flow) Figure 10a: River flow diagram for Moragolla HPP Figure 10b: Average monthly flow in the river before Moragolla HPP Figure 10c: Average monthly flow in the river after Moragolla HPP Figure 11: Average monthly flow from the Kotmale tailrace and immediately downstream of the Moragolla tailrace Figure 12: Predicted average water level in the Moragolla reservoir Figure 13: The major river basins in Sri Lanka Figure 14: Average monthly flow in the Mahaweli Ganga Figure 15: Water depth in Mahaweli Ganga under existing minimum flow and proposed E-flow Figure 16: Predicted variability in water levels downstream of the Moragolla tailrace under different discharge regimes Figure 17: Variability of water levels downstream