Social Safeguard Monitoring Report

Project Number: 47037-005 Loan Number: 3483/3484/8313 Semi Annual Report January 2021

Sri Lanka: Green Power Development and Energy Efficiency Improvement Investment Program - Tranche 2

Prepared by Ceylon Electricity Board for the Asian Development Bank.

This social safeguard monitoring report 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. 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.

Semi- annual Social Safeguard Progress Report ADB Loan 3483/3484 SRI & 8313 SRI (Co-financing AFD)

Reporting Period {July 01, 2020 to December 31, 2020} Date {Jan 19, 2021} Report No : GPDEEIIP-TRII/2020/S2_V1

SRI: Green Power Development and Energy Efficiency Improvement Investment Programme (Tranche 2)

Prepared by the Ceylon Electricity Board for the Asian Development Bank

1

List of Abbreviations

ADB – Asian Development Bank CCD – Coast Conservation Department CEA – Central Environment Authority, Government of CEB – Ceylon Electricity Board DC or D/C – Double Circuit DPR – Detailed Project Report DSD – Divisional Secretariat Divisions EA – Executing Agency EARF – Environmental Assessment and Review Framework EIA – Environmental Impact Assessment EMOP – Environmental Monitoring Plan EMP – Environmental Management Plan EHV – Extra High Voltage GHG – Green House Gas GND – Grama Niladhari Divisions GOSL – GRC – Grievance Redress Committee GRM – Grievance Redress Mechanism IA – Implementing Agency IEE – Initial Environmental Examination LILO – Line – in- Line- out MFF – Multi-tranche Financing Facility MOPE – Ministry of Power and Energy. Government of Sri Lanka PAA – Project Approving Authority PCB – Poly Chlorinated Biphenyl PMU – Project Management Unit REA – Rapid Environment Assessment ROW – Right of Way RP – Resettlement Plan SC or S/C – Single Circuit SF6 – Sulphur Hexafluoride SPS – Safeguard Policy Statement GPD&EEIIP1-2 – Green Power Development & Energy Efficiency Improvement Investment Programme (Tranche 1) Part 2

2

Table of Contents

1 INTRODUCTION ...... 5 1.1 Project Background ...... 5 2 PROJECT STATUS ...... 9 2.1 Present Status of these Transmission Infrastructure Development ...... 9 2.2 Project Progress Status and Implementation Schedule ...... 12 3 RESETTLEMENT AND COMPENSATION PROGRESS ...... 17 4 COMPLAINTS AND GRIEVANCE REDRESS ...... 19 4.1 Status of addressing public grievances ...... 19 5 CONSULTATION AND PARTICIPATION ...... 21 5.1 Public consultation activities ...... 21 6 CONCLUSION AND FUTURE PLAN ...... 22 6.1 Plans for next monitoring period ...... 22 6.2 Conclusions ...... 23

3

Mannar-Nadukuka Transmission Development

Augmentation of Kotugoda GSS

33kV 8km Tower line Kappalthurai GSS to Chinabay Gantry, New Gantry at Chinabay

Augmentation of Kolonnawa Stanley GSS

Construction & Augmentation of Biyagama GSS 33kV 23km Tower line Old Anuradhapura GSS to Mahaillupallama Gantry, new Gantry at Mahaillupallama

Augmentation of Madampe GSS

Smart Metering Pilot Katunayake Stringing of 2nd circuit of Habarana-Valchchenai 132kV transmission line

Augmentation of Dehiwala GSS

Construction of Colombo B GSS

33kV 4km Tower line Augmentation of Ethgala Gantry to Colombo C and Kolonnawa GSSs Storefield Gantry, new Gantry at Ethgala New Polopittiya-Hambatota transmission development Augmentation of Ethukotte PSS

Construction of Rattanapitiya PSS 33kV 11km Tower line Embilipitiya GSS to Weniwelara Gantry, new Gantry at Weniwelara Horana- transmission development 33kV 14km Tower line Matugama GSS to Bentota PSS Augmentation of Bligaha PSS

Map 1: Composite Map of Locations of GPD&EEIIP-TR2 Project

4

1 INTRODUCTION This document is the Social Safeguards Monitoring Report for the period July 01 2020, through December 31, 2020 for the Green Power Development and Energy Efficiency Improvement Investment Programme - Tranche 2. The project consists of three components, namely, Transmission infrastructure enhancement under Package 1, 2 & 3, Efficiency improvement of medium voltage network under Package 4 & 5 and Demand-side management improvement for energy efficiency under Package 6 & 7.

All the provinces in Sri Lanka excluding Uva Province will be directly benefitted by the implementation of transmission, distribution and demand side management components of this program.

The total investment cost of the Tranche 2 is USD 260 million. ADB will provide USD 150 million while AFD will provide USD 30 million as a loan directly to Ceylon Electricity Board (CEB) under a treasury guarantee. The loan agreement between ADB & CEB was signed on 27th December 2016. The executing and implementing agency for above packages are Ministry of Power, Energy and Business Development & Ceylon Electricity Board respectively.

Social Safeguard aspects of each package of the Project is described below.

1.1 Project Background Package 1: Lot A - Construction of Hambantota 220/132kV Grid Substation & Augmentation of 132/33 kV Hambantota Grid Substation & Lot B - Construction of New Polpitiya - Hambantota 220kV Transmission Line – 150km The Southern Province demonstrates visibly the Sri Lankan government’s efforts to develop regional economies. The new port and new airport in Hambantota offer significant opportunities in diverse business areas, including cargo and shipping, tourism and the service sector. No major power plant developments have been identified in Southern Province until year 2024 and therefore it finds difficulty to provide quality and reliable power supply from existing 132kV network. Further, when the Samanalaweva power station is not in operation, the system reliability in southern province area is not guaranteed under contingency situation.

To mitigate above issue Long Term Transmission Development Plan 2013-2022 has identified 220kV transmission connection to Hambantota from New Polpitiya. This will operate as a transmission high way to flow hydro power generated at Mahaweli complex and Laxapana complex to southern load center and hence facilitate to provide quality and reliable power supply to Southern Province. Construction of New Polpitiya-Hambantota 220kV transmission line and Hambantota 220/132kV Grid Substation and Augmentation of 132/33 kV Hambantota Grid Substation are a part of this development.

According to the year 2017 transmission network, over loading of Pannipitiya- 132kV transmission line and severe voltage drops at Embilipitiya, Hambantota, Matara, Beliatta, Galle, Deniyaya grid substations can be observed without the proposed New Polpitiya-Hambantota 220kV transmission

5

line. So, the proposed line is at the highest priority to improve the reliability and voltage profile of the Southern network.

Package 2: Lot B1 Construction of Mannar – Nadukuda 220kV Transmission Line & Lot A Construction of Nadukuda 220/33 kV Grid Substation & Augmentation at Mannar 220/33kV Grid Substation In the efforts to harness renewable energy in the country, wind has been identified as a source of significant potential to generate electricity. Studies carried out by both local and international experts envisaged that 375 MW of wind capacity with 35~45% plant factor could easily be developed in the Mannar island. Accordingly, the Generation and Transmission planning branch of CEB has planned to set up a 220/33kV GSS at Nadukuda in the Manna Island and a 220kV transmission line from Nadukuda to Mannar in order to evacuate the wind power generation in the Mannar Island. Accordingly, a PMU has been established to construct a 100MW Wind Power plant and a separate PMU to construct the transmission infrastructure, under the Green Power Development and Energy Efficiency Improvement Program (Tranche II) which is funded by ADB.

Construction of Nadukuda GSS and Mannar Nadukuda Transmission are the important component of the project scope of the Green Power Development and Energy Efficiency Improvement Investment Program (Tranche II). This project component has an estimated cost of 36 MUSD.

Under this project component, it is proposed; (1) to construct 220/33kV Grid Substation (GSS) at Nadukuda in Mannar island and the augmentation of Mannar GSS. This GSS will be able to absorb entire 375 MW of wind power. However, at this stage only 2 X 63MVA capacity transformers will be installed with the provision to install further 4 X 63MVA transformers in the future. (2) to construct a 30km of 220kV transmission line from Nadukuda GSS to the Mannar GSS. The Nadukuda GSS will interconnect the clusters of wind plants at 33kV level and transmit the power & energy to Mannar Grid Substation via the 30km long 220kV transmission Line.

Package 2: Lot B2 Horana - Padukka 132kV, 25km Transmission Line and 2nd Circuit Stringing of Habarana - Valachchenai 132 kV Transmission Line Present Southern Transmission network is mainly fed through New Laxapana Balangoda, Pannipitiya- Panadura and Samanalawewa-Embilipitiya 132 kV Transmission lines. An outage in one of the circuits of Pannipitiya-Panadura transmission line or New Laxapana Balangoda transmission line may cause tripping of other circuit also. This may cause low voltages in the southern network as well. The proposed Padukka-Horana 132 kV transmission line will provide an additional path of power flow to the Southern Transmission Network and will improve the reliability of Southern Network. With the proposed Padukka- Horana 132 kV, loading of existing 132 kV lines is reduced and it reduces the losses of the transmission network. At present Valachchenai 61.5 MVA 132/33 kV grid substation is connected to the national grid by two single circuit 132 kV transmission lines from Habarana grid substation. One transmission line is of Lynx

6

conductor and built in 1995 and this line can transfer only 88 MVA. The new transmission line is a Zebra conductor line and is commissioned in 2014 and it can handle up to 145 MVA. The new line is a double circuit transmission line with only one circuit strung and it connects the Polonnaruwa 63 MVA grid substation. By 2018, Valachchenai grid substation will handle a capacity of 63 MVA. In case of a tripping of Habarana-Polonnaruwa section of the new transmission line, the total grid capacity will flow through the old single circuit transmission line, which will cause to overload and trip the line. In such a case both Polonnaruwa and Valachchenai grid substations will be isolated from the system. This leads to supply failure of 20% of North Central province and 17% of Eastern province load. To avoid such a situation and to improve the quality and reliability of the electricity supply in Eastern and North Central provinces it is proposed to string the second circuit of the 132 kV zebra transmission line from Habarana grid substation to Valachchenai grid substation. Package 3: Lot A1 Construction of Colombo B GSS, Single In & Out connection from Colombo C- Kolonnawa 132kV 800sqmm Cable & Augmentation of Colombo C & Kolonnawa GSS At Present Colombo B is a 33/11kV substation, which feeds Colombo 11 region. The main Harbor of the country and many other commercial centers are location in this region. According to the statistical data the anticipated load growth rate of the area is 5.1%. Several major loads are to be added in the near future and the existing Colombo B Substation cannot cater for the expected demand increase in the area. In addition, part of the loads connected to Colombo F GS needs to be transferred to Colombo B GS in order to avoid overloading in future. Further, there are only two 33kV feeders available at Colombo B GS at present and these feeders are about 50 years old and frequent failures are occurred in the cables. The 132KV power cables required for the proposed substation will be laid under the Colombo City Electricity Distribution Development Project, hence only the upgrading of substation is required.

Package 3: Lot A2 Augmentation of Kotugoda,Kolonnawa ,Padukka,Horana,Dehiwala & Madampe GSS It has been proposed to Augment Kotugoda, Kolonnawa, Horana, Padukka, Madampe and Dehiwala to improve the quality and reliability of the electricity supply while avoiding of overloading the grids and meet the growing electricity demand.

Package 3: Lot B Construction of Biyagama 220/33kV GSS & Augmentation of Biyagama GSS According to the demand forecast giving in Long Term transmission development plan 2015-2024, the existing 220/33KV transformer capacity of Biyagama interbus transformer is not adequate to cater the growing demand of Biyagama area, which has a larger BOI Zone. According to the transmission system studies carried out for the year 2018, 220/33KV winding of the interbus transformer overloads 8% of the contingency rating during night peak loading conditions. Thus, it is important to construct a new 220/33KV GSS at existing Biyagama switching station premises to cater the growing electricity demand in Biyagama area.

Package 04 & Package 05: Medium Voltage Sub Projects

7

The demand for electricity in Sri Lanka is growing at a rate of about 5-6% per annum. The generating sources and transmission and distribution facilities have to be developed and strengthened in order to meet this growth in demand.

Medium Voltage Distribution System is the backbone of the power distribution network and it is the interface between the Transmission network and the LV Distribution network which provide supply to the consumers. It is therefore essential to reinforce and develop a healthy Distribution System which has the capability of catering the growing electricity demand of the country while maintaining an acceptable reliability and quality above the set operational standards and norms.

The MV Development studies are carried out by Distribution Planning Branches of CEB within the planning horizon of 10 years as a rolling plan in order to forecast future power demand and to formulate distribution development proposals to ensure reliable and safe electricity distribution at optimal cost.

Outcome of the above studies emphasized the urgency of constructing the distribution system facilities outlined in this project proposal.

Package 04: 33kV Lines & Gantries

Under this project component, it is planned to,

1. Construct 33 kV 23 km (revised 22km) DC Lynx Tower line from Anuradhapura GSS to Mahailluppallama Gantry

2. Construct 33kV 4 km DC Lynx Tower line from Storefield Gantry to Ethgala Gantry

3. Construct 33kV 8 km 4cct Lynx Tower line from Kappalthurai GSS to Chinabay Gantry.

4. Construct 33kV 11 km (revised 10.5km) DC Lynx Tower lines from Embilipitiya GSS to Weniwelara.

5. Construct 33kV 14 km (revised 11.5km) DC Lynx Tower line from Matugama GSS to Bentota PSS

6. Construct Two Section Single Busbar Gantry at Mahailuppallama

7. Construct Two Section Single Busbar Gantry at Ethgala

8. Construct Two Section Single Busbar Gantry (revised to Double Busbar) at China Bay

9. Construct Two Section Single Busbar Gantry at Weniwelara (revised to Sooriyawawa)

Package 05: Primary Substations

Under this project component (Package 05), it is planned to,

1. Design, Supply and Augmentation of 2x10 MVA Manned Primary Substation to 2x16 MVA GIS Manned Primary Substation at Ethulkotte

2. Design, Supply and Augmentation of 2x5MVA + 2MVA Unmanned Primary Substation to 2x10 MVA GIS Manned Primary Substation at Beligaha

8

3. Design, Supply and Installation of 2x10 MVA GIS Manned Primary Substation at Rattanapitiya

2 PROJECT STATUS

2.1 Present Status of these Transmission Infrastructure Development Package 1 The Green Power Development & Energy Efficiency Improvement Investment Programme (Tranche 2) Package 1 Transmission Infrastructure Capacity Enhancement Project, consists of following Lots with the estimated costs:

Package Lot Project Total (MUSD)

Construction of Hambantota 220/132kV Grid Substation & 15.5 Lot A 1 Augmentation of 132/33 kV Hambantota Grid Substation Lot B New Polpitiya-Hambantota 220kV, 150km Transmission Line 57.3

The contract details including the contract price of the following two lots under Package 1 are as follows.

Package 1: Lot A Package 1: Lot B Scope Construction of Hambantota Construction of New Polpitiya- 220/132kV Grid Substation & Hambantota 220kV,150km Augmentation of 132/33 kV Transmission Line Hambantota Grid Substation Contractor China National Cable Engineering Chint Electric Co., Ltd, China Corporation, China Contract Price USD 9,221,930.93 + USD 32,311,798.62 + including change LKR 436,827,292.26 LKR 808,290,584.14 orders Change Order 01 Change Order 01 LKR 1,741,454.03 +USD 75,924.62 LKR 26,377,920.00 +USD 321,986.35 Contract Effective Date December 04, 2018 August 08, 2018 Expected Completion July 01, 2021 September 20, 2021 Date {extension of time has been granted {extension of time has been granted as as per the Change Orders No 01} per the Change Orders No 01}

Package 2 The Green Power Development & Energy Efficiency Improvement Investment Programme (Tranche 2) Package 2 Transmission Infrastructure Capacity Enhancement Project, consists of following Lots with the estimated costs:

Package Lot Project Total (MUSD) 9

Lot A Construction of Nadukuda 220/33 kV Grid Substation 23.1 2 Augmentation at Mannar 220/33kV Grid Substation Lot B1 Mannar - Nadukuda 220kV, 30km transmission line 13.8 Lot B2 Padukka - Horana 132kV, 25km transmission line and 7.6 22nd cct strinnging of Habarana-Valachchenai 132kV transmission Line The contract details including the contract price of the following two lots under Package 2 are as follows.

Package 2: Lot B1 Package 2: Lot A Scope Construction of Mannar – Construction of Nadukuda 220/33 kV Grid Nadukuda 220kV Transmission Substation & Augmentation at Mannar Line 220/33kV Grid Substation. Contractor KEC International Limited Siemens Limited, India. Contract Price Contract Amount Contract Amount including change LKR 426,309,080.00 +USD orders LKR 932,903,081.57 +USD 11,901,167.32 6,477,201.00 Change Order 01 Change Order 01 LKR 5,660,000.00 + USD 476,988.00 LKR 8,240,000.00 +USD 88,638.00 Change Order 02 Change Order 02 LKR 8,996,250.00 + USD 8,400.00 LKR 3,955,000.00 +USD Change Order 02 21,518.00 No Price added Change Order 03 Change Order 04 LKR 3,955,000.00 +USD LKR 4,537,000.00 21,518.00 Contract Effective October 04, 2017 March 16, 2018 Date Expected August 17, 2020 April 15, 2021 Completion Date {extension of time has been {extension of time has been granted as per granted as per the Change the Change Orders No 02, No 03 & No 04} Orders No 01, No 02 & No 03}

Package 2: Lot B2 A Package 2: Lot B2 B Scope Construction of Horana-Padukka 2nd circuit stringing of Habarana- 132 kV, 25km Transmission Line Valachchenai 132 kV Transmission Line Contractor China National Electric Engineering China National Electric Engineering Co., Co., Ltd Ltd Contract Price Contract Amount Contract Amount including change USD 3,788,201.13 USD 3,208,816.79 orders

Contract Effective April 30, 2020 November 28,2019

10

Date Expected April 20, 2022 November 17, 2021 Completion Date

Package 3 The Green Power Development & Energy Efficiency Improvement Investment Programme (Tranche 2) Package 3 consists of following lots with the estimated costs:

Package Lot Project Total (MUSD) 3 Lot A1 Construction of Colombo B GSS, Single In & Out 8.16 connection from Colombo C-Kolonnawa 132kV 800sqmm Cable & Augmentation of Colombo C & Kolonnawa GSS Lot A2 Augmentation of Kotugoda, Kolonnawa, Padukka, 14.25 Horana, Dehiwala & Madampe GSS Lot B Construction of Biyagama 220/33kV GSS & 9.28 Augmentation of Biyagama GSS

The contract details including the contract price of the following three lots under Package 3 are as follows.

Package 3: Lot A1 Package 3: Lot A 2 Package 3: Lot B Scope Construction of Colombo B GSS, Single In & Out Augmentation of Construction of connection from Colombo Kotugoda,Kolonnawa Biyagama 220/33kV C-Kolonnawa 132kV ,Padukka,Horana, GSS & Augmentation of 800sqmm Cable & Dehiwala & Biyagama GSS Augmentation of Colombo C Madampe GSS & Kolonnawa GSS Contractor Hyosung Heavy Industries Cooperation ABB India Limited. ABB India Limited. Contract Price including 1434.12 change orders 1,260.8 2,214.2 + 78.77 (Equivalent MLKR) Contract October 15, 2019 October 22, 2018 November 14, 2018 Effective Date Expected Completion October 14, 2021 April 21, 2021 May 01, 2021 Date

11

Package 4 and 5 The estimated costs of the Green Power Development & Energy Efficiency Improvement Investment Programme (Tranche 2) - Package 4 & 5 are as follows.

Package Project Total (MUSD)

4 Construction of 05 Nos. of 33 kV Tower Lines and 04 Nos. of 14.8 Gantries 5 Augmentation of 02 Nos. of Primary Substations and 10.4 Construction of 01 No. of Primary Substation

The contract details including the contract price of Package 4 are as follows.

Package 4: Scope Construction of 5 Nos of 33kV Tower lines & 04 Nos of 33kV Gantries Contractor Ceylex Engineering (Pvt) Ltd Contract Price including change orders 2979.5 MLKR* (Equivalent MLKR) Contract Effective Date Dec 03 , 2019 Expected Completion Date Dec 02 , 2021

*selling exchange rate of 3rd May 2018 (Tec. Bid opening date) : 1USD = 159.0357 LKR

The contract details including the contract price of Package 5 are as follows.

Package 5: Scope Construction/Augmentation of 3 Nos of Primary Substations Contractor Siemens Ltd India consortium with DIMO (pvt) Ltd Sri Lanka Contract Price including change orders 1578.5 MLKR (Equivalent MLKR) Contract Effective Date Sep. 21 2020 Expected Completion Date Sep. 20 2022

*selling exchange rate of 6th Feb 2019(Tec. Bid opening date) : 1USD = 179.9798 LKR

2.2 Project Progress Status and Implementation Schedule Progress Status of Package 1: Lot A Construction of Hambantota 220/132kV Grid Substation & Augmentation of 132/33 kV Hambantota Grid Substation The updated status of project activities during the period of July 01, 2020 to December 31, 2020 is given below for the Grid Substation.

12

Description Affected Area Status Plan

Lot A Design Works – 95% Completed Sep - 2020 Construction of CEB obtained Hambantota 220/132kV Grid 3-hectare land Procurement – 70% Completed Jan - 2021 Substation & Augmentation of from UDA on Construction Work - 60% 132/33kV Hambantota Grid 30 Years Long July - 2021 Substation Term Lease Completed Installation & Commissioning 20% – July - 2021 Completed

Progress Status of the Package 1: Lot B Construction of New Polpitiya-Hambantota 220kV, 150km Transmission Line The updated status of project activities during the period of January 01, 2020 to June 30, 2020 is given below for the transmission line.

Description Affecte Status Plan d Area Lot B : 150 km 1. Design & survey works have been completed to 96% September, Construction 2021 Width of of New RoW 2. Material Procurement is in progress and 93% is April, 2021 Polpitiya 35m completed. Hambantota

220kV, 3. Progress of construction is 30% September, 150km 2021 Transmission Construction of tower foundations was started in June, Line 2019 and 208 nos. have been completed by end of this reporting period. Total no. of towers erected are 71.

Progress Status of Package 2: Lot A Construction of Nadukuda 220/33 kV Grid Substation & Augmentation at Mannar 220/33kV Grid Substation The updated status of project activities during the period of January 01, 2020 to June 30, 2020 is given below for the Grid Substation.

Description Affected Status Plan Area 2A 7Acre 1. Designs works were completed up to 95% April - 2021 Land is Construction of 2. Equipment Procurement 97% completed April - 2021 belongs to Nadukuda 220/33 kV CEB 3. Construction Work - 92% Completed April - 2021 Grid Substation & Augmentation at 4. Installation & Commissioning – 25% April - 2021 Mannar 220/33kV Grid Completed Substation

13

Progress Status of the Package 2: Lot B1 Construction of Mannar – Nadukuda 220kV Transmission Line The updated status of project activities during the period of January 01, 2020 to June 30, 2020 is given below for the Transmission Line.

Description Affected Status Plan Area 2B1 30km of Project is completed. N/A

Mannar - Nadukuda Width of 220kV, 30km 35 m transmission line

Progress Status of Package 2: Lot B2 Padukka-Horana 132kV,25km Transmission Line and 2nd Circuit Stringing of Habarana-Valachchenai 132 kV Transmission Line

Description Affected Status Plan Area 2B2 A 25km 1. Soil investigation is in progress. Feb, 2021

Construction of Width of 2. Center Line pegging is in progress. Jan, 2021 Horana-Padukka RoW 27m 3. Reviewing of design drawings is in progress. Aug 2021 132kV,25km

Transmission Line 2B2 B 1. Inspection of cross arms of the towers Jan, 2021 along the Transmission line is in progress. 2nd circuit stringing of Habarana- - 2. Reviewing of design drawings is in final Feb, 2021 Valachchenai 132 stage. kV,100km 3. Procurement of Conductors and Hardware April, 2021 Transmission Line items is in progress.

Progress Status of Package 3: Lot A1, Lot A2 and Lot B The updated status of project activities during the period of July 2020 to December 2020 is given below.

Description Affected Status Plan Area 3A1: Construction of Colombo These are Design and Engineering – 90% April 2021 B GSS, Single In & Out within connection from Colombo C- Procurement and Delivery – 65% July 2021

14

Kolonnawa 132kV 800sqmm CEB’s Civil Works – 20% October 2021 Cable & Augmentation of premises. Colombo C & Kolonnawa GSS Physical Progress -44.5% October 2021

3A2: Augmentation of These are Design And Engineering – 98.12% January 2021 Kotugoda, within Procurement and Delivery 96.16% February 2021 Kolonnawa,Padukka, Horana, CEB’s – Dehiwala & Madampe GSS premises. Civil Works – 72.84% April 2021 Physical Progress – 65.50% April 2021

3B: Construction of Biyagama These are Design And Engineering – 98.06% January 2021 220/33kV GSS & within Procurement and Delivery – 99.6% January 2021 Augmentation of Biyagama CEB’s GSS premises. Civil Works – 83% April 2021 Finishing of substructure works of new control building. Masonry work of control building in progress. Completion of switchyard foundations. Installation – 14% April 2021

Physical progress – 68.14%

Progress Status of Package 04: 33kV Lines & Gantries Progress summary of the contract is as follows: • Contract was effective from 03rd Dec. 2019

Description Affected area Status Plan

1. i)33 kV 22 km DC Lynx Tower line from Anuradhapura GSS to 22km, 15m RoW • Design progress : 85.0 % Completed* Mahailluppallama Gantry 0.039 ha of • Procurement progress: 58.25 % government Feb 2021 • Civil work : 67.5 % Jan 2021 owned land to be • Installation : 0.0 % Aug 2021 ii) Two Section Single Busbar used Gantry at Mahailuppallama 2. i)33kV 4 km DC Lynx Tower 4 km, 15m RoW line from Storefield Gantry to Ethgala Gantry Completed* • Design progress : 85 % Feb 2021 ii) Two Section Single Busbar 0.042 ha of • Procurement progress: 58.25% Dec 2020 July 2021 Gantry at Ethgala private owned • Civil work :57.42% land was • Installation : 0.0 %

purchased. 3. i)33kV 8 km 4cct Lynx Tower 8 km, 15m RoW line from Kappalthurai GSS to Chinabay Gantry. • Design progress : 85.0 % Completed* • Procurement progress :58.25% Feb 2021 • Civil work : 34.73% Nov 2020 15

0.03 ha of • Installation : 0.0 % May 2021 government ii) Two Section Double Busbar owned (Sri Lanka Gantry at China Bay Port Authority) 4. i)33kV 10.5 km DC Lynx Tower 10.5km, 15m lines from Embilipitiya GSS to RoW Weniwelara Gantry • Design progress : 85.0 % Completed* • Procurement progress :58.25% Feb 2021 • Civil work : 92.66 % April 2021 Sep 2021 ii) Two Section Single Busbar 0.05 ha of • Installation : 0.0 %

Gantry at Sooriyawawa government owned land to be

used 5. 33kV 11.5 km DC Lynx Tower 11.5km, 15m line from Matugama GSS to RoW • Design progress : 85% Completed* Bentota PSS • Procurement progress : 58.25% Feb 2021 • Civil work : 39.76% Nov 2020 • Installation : 0.0 % May 2021

*Final as built drawings are to be submitted at the end of the Project.

Total Summary Activity Progress (% completion) Design progress (weightage – 15%) 80.39 %* Procurement process (weightage – 20%) 58.25 % Civil work (weightage – 30%) 61.56 % Installation (weightage – 35%) 0.00 % Total Progress 42.18 % *Other than Tower Line & Gantry designs, Tower type designs and location-based foundation designs are included. Progress Status of Package 05: Primary Substations Progress summary of the contract is as follows: • Contract is effective form 21st September 2020. Demolishing work of the existing structures were done in Ethulkotte and Beligaha.

Progress Status for the Package 5; Primary substations wise is as follows, Activity Progress (% completion) Design & Engineering (weightage – 15%) 13 %* Procurement & Delivery (weightage – 30%) 5 % Civil work (weightage – 25%) 4% Electrical Work (weightage – 20%) 0 % Testing & Commissioning (weightage – 10%) 0 % Total Progress 4.41 %

16

3 RESETTLEMENT AND COMPENSATION PROGRESS

Package 1: Lot A Construction of Hambantota 220/132kV Grid Substation & Augmentation of 132/33 kV Hambantota Grid Substation 7.5 -acre land has been obtained from UDA on long term Lease for this construction by CEB. Further no resettlement required for this project.

Package 1: Lot B Construction of New Polpitiya-Hambantota 220kV, 150km Transmission Line Compensation payment for tree cutting is in progress and started in Deraniyagala, Kuruwita, Ambagamuwa, Rathnapura, Balangoda, Imbulpe, Waligepola, Embilipitiya, Sewanagala, Sooriyawawa and Hambantota Divisional Secretariats. The details of beneficiaries are listed as below.No resettlement is required for this project.

Package 1: LotB No. of APs Amount (LKR)

Felled Trees 52 15,400,000.00 Compensation for Tower

Locations (for the reporting Crop Damage 13 40,000,000.00 period) Land Devaluation 3 1,200,000.00

Felled Trees 130 140,000,000.00 Compensation for Tower Crop Damage Locations (Cumulative) 56 61,500,000.00 Land Devaluation 12 6,862,050.00 Compensation for Line Corrido Felled Trees 109 96,300,000 (for the reporting period) Compensation for Line Corrido Felled Trees 230 236,700,000 (Cumulative)

Package 2: Lot A Construction of Nadukuda 220/33 kV Grid Substation & Augmentation at Mannar 220/33kV Grid Substation 7-acre private land has been purchased for this construction by CEB. Further no resettlement required for this project

Package 2: Lot B1 Construction of Mannar – Nadukuda 220kV Transmission Line The compensation for the wayleaves has been paid for almost all the effected parties. The details of beneficiaries are listed as below. Further no resettlement required for this project. Package 2: Lot B1 No. of Amount APs (LKR) 17

Felled Trees Compensation for Tower 17 2,000,000.00 Locations (Cumulative) Crop Damage 14 1,500,000.00 Compensation for Line Corrido Felled Trees (Cumulative) 48 28,000,000.00

Package 2 Lot B2 A Compensation process is being in progress and still not reached to the level of paying compensations. No resettlement is required for this project.

Package 2 Lot B2 B Compensation or resettlement is not required for this project as this was done in stage 01 of this project.

Package 3: Lot A1, Lot A2 and Lot B As the project is carried out in CEB GSS no resettlement or compensation is required.

Package 04: 33kV Lines & Gantries Compensation for tower footings are done before mobilization to each tower location. Summary is as follows.

Tower Line Description Total number of Previously Compensated during Compensated Tower Footings compensated the reporting period (Cumulative)

1. Anuradhapura GSS to 93 29 32 61 Mahailluppallama Gantry (22km) 2. Storefield Gantry to Ethgala 15 0 0 0 Gantry(4km)* 3. from Kappalthurai GSS to 33 0 0 0 Chinabay Gantry(8km)** 4. Embilipitiya GSS to Weniwelara 33 15 13 28 Gantry(10.5km) 5. Matugama GSS to Bentota 42 4 5 9 PSS(11.5km) *07 locations are in Government lands with no interested parties. **All the locations are in Government Lands. One location has a interested party. He shall be compensated. Cumulative Tower Footing Compensation Progress: 55 %

Package 05: Primary Substations No resettlement / compensation for the reporting period.

18

4 COMPLAINTS AND GRIEVANCE REDRESS CEB adopted a project specific Grievance Redress Mechanism (GRM) having suitable grievance redress procedure to receive and facilitate resolution of affected peoples’ concerns, complaints, and grievances about the social and environmental performance at subproject level. The GRM aims to provide a time- bound and transparent mechanism to voice and resolve social and environmental concerns linked to the project.

4.1 Status of addressing public grievances Package 1: Lot B Construction of New Polpitiya-Hambantota 220kV, 150km Transmission Line All public grievances under this project has been considered at the Grievance Redress Meetings conducted by the relevant Divisional Secretaries with the participation of project engineers from CEB with the affected parties. In these meetings and site visits, public grievances are considered and addressed. Summary of no. of grievances submitted at DS level committees is as follows.

Package

1:LotB No. of Grievances submitted to 0 DS (reporting period) No. of Grievances submitted to 78 DS (Cumulative) No. of Grievances solved 1 reporting period) No. of Grievances solved 72 (Cumulative) No. of Grievances in progress 5 (reporting period) No. of Grievances in progress 5 (Cumulative)

Package 2: Lot B1 Construction of Mannar – Nadukuda 220kV Transmission Line All public grievances under this project have been considered at the Grievance Redress Meeting held at the District Secretary office handled by the Grievance Redress committee comprising Additional District Secretary, Divisional Secretary Mannar & Project Engineer from CEB with the participation of the affected parties. In this meeting all public grievances have been considered and resolved. Further, based on the result the compensation has been paid by CEB. During this period, NO Grievance have been recorded.

19

Package 2: Lot B2 Construction of Horana – Padukka 132kV Transmission Line Issues discussed Response DS Division Land owner requested to shift the tower AP2 This is a new issue which will be Padukka from his land addressed by CEB. Public at Sri Rathana road (AP7-AP9) Divisional Secretary to Homagama requested to shift the line away. conduct the investigation and visit the alternative line route proposed by the villagers Land owner requested to shift the line from Land owners agreed to grant their Ingiriya their land at AP30-AP35. consent to the line route subjected to the compensation during the field visit on August 11, 2020 with ADS-Ingiriya and CEB The land owner requested to shift the line to Divisional Secretary Padukka have Padukka the border of the land at AP18-AP19 conducted the investigation on July 31, 2020 to shift the line.

Package 03 Lot A1: No grievances/objections received for the reporting period Lot A2: No grievances/objections received for the reporting period Lot B: No grievances/objections received for the reporting period

Package 04: 33 kV Lines & Gantries No grievances/objections received for the reporting period.

Package 05: Primary Substations No grievances/objections received for the reporting period.

20

5 CONSULTATION AND PARTICIPATION

5.1 Public consultation activities

Package 2: Lot B1 Construction of Mannar – Nadukuda 220kV Transmission Line Public Consultation Held on 17 April 2016 Locational Details

• Name of the village: South Bar (Railway Station) • Name of the GND): South Bar MN/73 • Name of the DS Division: Mannar • Distance from the Project Location: 3 km • No. Participants: 13

Photographs of consultation sessions

Package 02: Lot B2 A

Project Engineers and the staff had few meetings with the Divisional Secretary Homagama and subsequently carried out the site inquiries regarding the objections raised by the villagers of SRI RATHNA road of No. 447 Meegoda North Grama Niladhari division on December 4, 2019.However, there were many objections raised during the inquiry and some were not pleasant. There were several site visits were conducted to verify land owners and discussions were carried out to resolve the objections. There was a meeting held on October 13, 2020 at the office of Divisional Secretariate -Homagama with the villagers of Sri Rathana Road and they proposed an alternative line route.

A site visit was conducted on July 31, 2020 together with Additional Divisional Secretary-Padukka and CEB at Liyanwala GS division to investigate objections (AP 18-19). In addition to that, another site visit with Additional Divisional Secretariate – Ingiriya was conducted to investigate objection at Maputugala GS division (AP 30 -35)

CEB had taken all efforts to address the public objections and looking in to the possibilities of shifting the line route to minimize the public concerns.

21

6 CONCLUSION AND FUTURE PLAN

6.1 Plans for next monitoring period

Package 1: Lot A Construction of Hambantota 220/132kV Grid Substation & Augmentation of 132/33 kV Hambantota Grid Substation • 100% of the physical progress is expected.

Package 1: Lot B Construction of New Polpitiya-Hambantota 220kV, 150km Transmission Line • 80% of the physical progress is expected. • 90% of compensation progress is expected. • Balance compensation process is planned to be carried out under new normal of COVID19 and will be followed under GOSL COVID19 health guidelines.

Package 2: Lot B1 Construction of Mannar – Nadukuda 220kV Transmission Line • Project already completed. Package 2: Lot A Construction of Nadukuda 220/33 kV Grid Substation & Augmentation at Mannar 220/33kV Grid Substation • 100% of the physical progress has to be completed. Package 2: Lot B2 A Construction of Padukka-Horana 132kV,25km Transmission Line • 40% of physical progress is expected. Package 2: Lot B2 B 2nd Circuit Stringing of Habarana-Valachchenai 132 kV Transmission Line • 55% of physical progress is expected. Package 3: Lot A1 Construction of Colombo B GSS, Single In & Out connection from Colombo C- Kolonnawa 132kV 800sqmm Cable & Augmentation of Colombo C & Kolonnawa GSS • Completion of 70% of the physical progress. Package 3: Lot A2 Augmentation of Kotugoda,Kolonnawa ,Padukka,Horana,Dehiwala & Madampe GSS • Completion of 100% of the physical progress. Package 3: Lot B Construction of Biyagama 220/33kV GSS & Augmentation of Biyagama GSS • Completion of 100% of the physical progress. Package 4: 33 kV Lines & Gantries • 84 % of overall physical progress is expected at the end of the next reporting period. • Expected to achieve Cumulative Tower Footing Compensation Progress of 80 % within the next reporting period. Package 5: Primary Substation • 40 % of overall physical progress is expected at the end of the next reporting period.

22

6.2 Conclusions

Package 1: Lot B Construction of New Polpitiya-Hambantota 220kV, 150km Transmission Line The project management team is of the view that the social concerns are well addressed and all the stakeholders related on this regard are working together to complete the project successfully. CEB expect to resolve the balance few grievances remining at DS level in the next reporting period with further coordination with relevant DSs. Further, it is expected to accelerate and pay compensation to remaining affected parties by end of this year. Further, the project management team is highly concerned about the site activities affected to public associated to the transmission line and always carefully monitors construction works to minimize if any. Further, the team is closely monitoring the job opportunities for the local people living in the area and it is created openings by tree cutting, soil testing activities, survey activities, concrete redymix supplying, foundation constructions, security services, driving light/heavy vehicles and machinery, tower erection and etc either through the CEB or contractor. At the moment, about 130 people are involving on these opportunities and it is expected that this number will get increased with future activities. Package 2: Lot B1 Construction of Mannar – Nadukuda 220kV Transmission Line The project management team is closely monitoring the job opportunities for the local peoples living in Mannar region, so far more than 25 labours has been given job opportunities through the contractor/ CEB for the construction works, clearing the site, laying boundary stones, and survey helping from the local area. Package 2: Lot B2 A Construction of Padukka-Horana 132kV,25km Transmission Line Project management team is of the view that social concerns should be well addressed and proper compensation has to be given affected parties, even considering the devaluation of their land value. Package 2: Lot B2 B 2nd Circuit Stringing of Habarana-Valachchenai 132 kV Transmission Line Project management team is highly concerned about stringing works which is to be carried out in hot line condition across some wild life area and expects support of Department of wild life and Department of forest conservation to complete the project successfully.

23