Initial Environmental Examination: Distribution Subprojects August 2012 Sri Lanka: Clean Energy and Network Efficiency Improvement Project Prepared by Ceylon Electricity Board for the Asian Development Bank. CURRENCY EQUIVALENTS (as of 14 August 2012) Currency unit – Sri Lanka rupee/s (SLRe/SLRs) SLRe1.00 = $0.00758 $1.00 = SLRs131.95 ABBREVIATIONS ADB – Asian Development Bank CEA – Central Environmental Authority CEB – Ceylon Electricity Board DoF – Department of Forest DS – district secretary EA – executing agency EIA – environmental impact assessment EMoP – environmental monitoring plan EMP – environmental management plan GoSL – Government of Sri Lanka GRM – grievance redress mechanism IA – implementing agency IEE – initial environmental examination LA – local authority MOH – medical officer of health MoPE – Ministry of Power and Energy NEA – National Environmental Act PHI – public health inspector PIU – project implementation unit PRDA – Provincial Road Development Authority PUCSL – Public Utilities Commission of Sri Lanka RoW – right of way SEA – Sustainable Energy Authority WEIGHTS AND MEASURES km – kilometer kV – kilovolt MVA – megavolt-ampere MVAr – megavolt-ampere reactive MW – megawatt NOTE In this report, "$" refers to US dollars. 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. Contents EXECUTIVE SUMMARY 1 1.0 INTRODUCTION 3 1.1 Background 5 1.2 Scope of Work and Methodology Adopted 5 1.3 Applicable Environmental and other Legislations 6 2.0 DESCRIPTION OF THE PROJECT 7 2.1 The Project 7 2.2 Type of Project 9 2.3 Justification for the Project 9 2.4 Location 10 2.5 Size and the Magnitude of the Operation 14 2.6 Implementation Plan 16 3.0 DESCRIPTION OF ENVIRONMENT 18 3.1 Ampara District 18 3.2 Vavuniya district 22 3.3 Anuradhapura district 24 3.4 Kandy district 26 4.0 SCREENING OF POTENTIAL ENVIRONMENTAL IMPACT AND MITIGATION MEASURES 30 4.1 CEB’S Approach for Route Selection 30 4.2 Alternatives for Line Alignment 30 4.3 Environment Impacts and Mitigation Measures 31 4.4 Environmental Management Plan 33 5.0 INSTITUTIONAL REQUIREMENT AND ENVIRONMENTAL MONITORING PROGRAMME 37 5.1 Institutional Arrangements 37 5.2 Environmental Monitoring Plan (EMoP) 38 5.3 Critical Environmental Review Criteria 39 5.4 Environmental Management Plan Budget Costs 39 5.5 Associated Facilities 39 6.0 GRIEVANCE REDRESS MECHANISM 41 6.1 Awareness of Stakeholders 41 6.2 Grievance Redress Mechanism and PUCSL 41 7.0 PUBLIC CONSULTATION AND INFORMATION DISCLOSURE 43 7.1 Consultation Findings 44 8.0 FINDINGS AND RECOMMENDATIONS 46 9.0 CONCLUSIONS 47 Annexure 1 Applicable Environmental Policy and Procedures 48 Annexure 2 Route Analysis for 33 kV lines 57 Annexure 3 Locational Analysis for Gantry based Switching stations 59 Annexure 4: Inventorisation along the Distribution Lines 61 Annexure 5 Environment Management Plan (EMP) 70 Annexure 6 Environmental Parameters and Periodicity for Environmental Monitoring Plan 76 Annexure 7 Granting of Necessary Way leaves for Electricity Networks in Sri Lanka - Guidelines for Licensees, Divisional Secretaries and Landowners and/or Occupiers 78 EXECUTIVE SUMMARY 1. Asian Development Bank (ADB) is proposing to extend $130 million loan to Sri Lanka’s power sector for the Clean Energy and Network Efficiency Improvement Project with a focus to identify transmission and distribution subprojects for evacuation of renewable energy (wind, hydro and solar) and overall improvement of network efficiency. 2. The distribution component of the Clean Energy and Network Efficiency Improvement Project includes the following subprojects: (i) Vavunia–Kebithigollewa 23 kilometers (km), 33 kilovolt (kV) line and gantry at Kebithigollewa; (ii) New Anuradhapura–Kahatagasdigiliya 31 km, 33 kV line and gantry at Kahatagasdigiliya; (iii) Kiribathkumbura–Galaha 15 km, 33 kV line and gantry at Galaha; and (iv) Galmadu Junction–Pothuvil via Akkaraipatthu 60 km, 33 kV line and gantries at Akkaraipatthu and Pothuvil. 3. 250 sq.m. plot of land required for gantry based switching stations for Kahatagasdigiliya, Galaha, Akkaraipatthu and Pothuvil will be government land. Whereas, the Kebithigollewa land is private that will be purchased at market rates and acquisition of land will not be required from the surrounding communities. The Vavyunia-Kebithigollewa line (23 km) passes two forest reserves (Kapundkalipulam and Padaviya), home gardens, paddy fields, and crosses the Sinnapuluk Kulam and Dutuwewa dry zone tanks. The Kiribathkumbura-Galaha line (15 km) is based in hilly region and passes through home gardens, tea gardens, paddy, pinus and rubber plantations. The New Anuradhapura-Kahatagasdigiliya line (31 km) passes through paddy fields, home gardens, chena lands, scrub jungle and secondary forests; the Galmadu Junction-Akkaraipaththu line (18 km) passes through densely populated area, home gardens, paddy fields, and degraded lands. The Akkaraipaththu-Pothuvil line (42 km) passes through paddy fields, home gardens, edge of tanks (Komari and Paladi), scrublands and degraded lands. All the forest reserve areas traversed by the lines are degraded forests, which were cleared during the conflict period. 4. Impacts are manageable and can be managed cost effectively: environmental impacts are likely to result from the proposed project development. Careful mitigation and monitoring, specific selection criteria and review and assessment procedures for subprojects have been specified to ensure that minimal impacts take place. The detailed design would ensure inclusion of any such environmental impacts, that could not be specified or identified at this stage, to take them into account and mitigate, where necessary. Those impacts can be reduced through mitigation measures such as correction in work practices at the construction sites or through the careful selection of sites. 5. The proposed project will have number of positive impacts and negative impacts to the existing environment as follows: (i) Significant improvement of the quality and reliability of the electricity supply to the project affected area according to current demand is the main positive impact. (ii) Removal of trees for distribution lines is the main negative impact to the proposed project area. (iii) Environment pollution due to cut and fill operations, transportation of construction materials, disposal of debris, disturbance to the farming activities, nuisance from dust, noise, vehicle fumes, black smoke, vibration etc. due to construction activities are the short term negative impacts due to proposed project. (iv) There will be loss of agricultural productivity due to obstruction and reduction of the land of paddy fields as well as cutting of home gardens, coconut and rubber plantations; which will be compensated based on established rates by Ceylon Electricity Board (CEB). 1 6. Benefits far outweigh negative impacts: the proposed project will improve operational efficiency and quality of power, voltages, reliability of the system and at the same time will reduce losses. Supply of power to both the local areas and regions will boost economic development of the area by strengthening the power distribution infrastructure. Overall, the major social and environmental impacts associated with the distribution subprojects are limited to the construction period and can be mitigated to an acceptable level by implementation of recommended measures and by best engineering and environmental practices. 7. Various mitigation measures to be taken prior to the project activities are listed in the project's initial environmental examination (IEE). Potential adverse environment impacts associated with distribution lines have been avoided or minimised through careful route selection. The alignment is sited away from major settlements, whenever possible, to account for future urban expansion. Forests areas and thick vegetation areas are avoided wherever possible; however, route alignment passes through scrublands, cultivated paddy fields, rubber cultivations, rubber plantations, tea cultivations, etc. The lines will also pass through degraded forest areas but avoid any national park or sanctuary. The alignments in this project have also avoided wetlands and geologically unstable areas, which can also pose foundation related problems. Land will only be purchased and acquired for one gantry based switching station and no land will be required for placing distribution towers on private land. Physical damage to the crops during the construction phase of the project will be compensated at the time of damage as per Government of Sri Lanka (GoSL) norms. Associated impacts on agricultural land will be restricted to the construction phase and will be temporary in nature. Agricultural land will not be lost permanently at the base of the distribution tower. After construction, agricultural land within the distribution corridors can be used again for farming purpose. 8. Since the project does not involve activities that have significant adverse impact, an initial environmental