Initial Environmental Examination Document Stage: Draft Project Number: P47037-005(SRI) July 2016 SRI: Green Power Development and Energy Efficiency Improvement Investment Program – Tranche 2 (Transmission Infrastructure Enhancement) 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 22 July 2016) Currency unit – Sri Lanka rupee/s (SLRe/SLRs) SLRe1.00 = $0.00684 $1.00 = SLRs146.03 ABBREVIATIONS ADB – Asian Development Bank CCD – Coast Conservation Department CEA – Central Environment Authority CEB – Ceylon Electricity Board DC or D/C – Double Circuit DPR – Detailed Project Report DSD – Divisional Secretariat Divisions EA – Executing Agency EARF – Environmental Assessment and Review Framework EIA – Environmental Impact Assessment EMoP – Environmental Monitoring Plan EMP – Environmental Management Plan EHV – Extra High Voltage GHG – Green House Gas GND – Gram Niladhari Divisions GoSL – Government of Sri Lanka GRC – Grievance Redress Committee GRM – Grievance Redress Mechanism GSS – Grid Sub Station IA – Implementing Agency IEE – Initial Environmental Examination LILO – Line – in- Line- out MFF – Multi-tranche Financing Facility MPRE – Ministry of Power and Renewable Energy PAA – Project Approving Authority PCB – Poly Chlorinated Biphenyl PMU – Project Management Unit GSS – Power Sub Station REA – Rapid Environment Assessment ROW – Right of Way RP – Resettlement Plan SC or S/C – Single Circuit SF6 – Sulphur Hexafluoride SPS – Safeguard Policy Statement WEIGHTS AND MEASURES ha (hectare) – Unit of area km (kilometer) – 1,000 meters kV – kilovolt (1,000 volts) kW – kilowatt (1,000 watts) MW – Mega Watt NOTE{S} In this report, "$" 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 1.0 INTRODUCTION 3 1.1 Background 3 1.2 Scope of Work and Methodology Adopted 4 2.0 POLICY, LEGAL, AND ADMINSTRATIVE FRAMEWORK 6 2.1 Applicable Environmental and other Legislations 6 2.2 Assessment of Legal and Institutional Framework 8 2.3 Applicable International Environmental Agreements 15 2.4 Asian Development Bank’s Safeguards Policies 16 2.5 Other documents relevant to ADB’s Safeguard Policy Statement, 2009 16 3.0 DESCRIPTION OF THE PROJECT 18 3.1 The Project 18 3.2 Type of Project 19 3.3 Justification of the Project 20 3.4 Location 23 3.5 Size and Magnitude of the Operation 37 3.6 Implementation Plan 46 4.0 DESCRIPTION OF ENVIRONMENT (BASELINE DATA) 48 4.1 Kegalle District 48 4.2 Ratnapura District 51 4.3 Nuwara Eliya District 56 4.4 Monaragala District 59 4.5 Hambantota District 64 4.6 Polonnaruwa District 70 4.7 Batticaloa District 74 4.8 Gampaha District 78 4.9 Puttlam District 83 4.10 Colombo District 88 4.11 Kalutara District 92 5.0 ANTICIPATED ENVIRONMENTAL IMPACT AND MITIGATION MEASURES 96 5.1 Environment Impacts and Mitigation Measures 96 6.0 ANALYSIS OF ALTERNATIVES 108 6.1 CEB’S Approach for Route Selection 108 6.2 Alternatives for Subproject Components 108 7.0 INFORMATION DISCLOSURE, CONSULTATION, AND PARTICIPATION 115 7.1 Consultation Findings 117 8.0 GRIEVANCE REDRESS MECHANISM 121 8.1 Awareness of Stakeholders 121 8.2 The Grievance Redress Mechanism and PUCSL 121 9.0 ENVIRONMENTAL MANAGEMENT PLAN 125 9.1 Environmental Management Plan 125 9.2 Environmental Management Plan Budget Costs 130 9.3 Monitoring of Environmental Management Plan (EMP) 130 9.4 Implementation arrangements 131 9.5 Critical Environmental Review Criteria 134 9.6 Associated Facilities 135 10.0 CONCLUSIONS AND RECOMMENDATIONS 136 Annexure 1 System Design Standards Followed by CEB for Setbacks etc. 138 Annexure 2 Alternative Site Analysis for Grid Substations 143 Annexure 3 Alternative Route Analysis for Transmission Lines 150 Annexure 4 Inventorisation along the Transmission Lines 155 Annexure 5 Environment Management Plan (EMP) 189 Annexure 6 Environmental Parameters and Periodicity for Environmental Monitoring Plan 199 Annexure 7 Environmental Safeguard Monitoring Report 204 Annexure 8 Granting of Necessary Wayleaves for Electricity Networks in Sri Lanka - Guidelines for Licensees, Divisional Secretaries and Landowners and/or Occupiers 206 EXECUTIVE SUMMARY 1. ADB is proposing to extend USD 150 million loan (with UDS 30 million cofinancing from AFD) to Sri Lanka’s power sector for Green Power Development and Energy Efficiency Improvement Investment Program (Tranche 2) with a focus to support wind-power development and identify the transmission and distribution projects for evacuation of renewable energy (wind) parks/ projects and overall improvement of energy efficiency and capacity development. 2. The subprojects of Transmission Infrastructure Enhancement of the Green Power Development and Energy Efficiency Improvement Investment Tranche 2 Program include: T-1 New Polpitiya-Hambantota 220 kV Transmission Development T-2 Construction of Colombo B 132/11 kV Grid Substation (GSS) T-3 Augmentation of Biyagama, Kotugoda and Kolonnawa Old Grid Substations T-4 Padukka – Horana 132 kV Transmission Development T-5 Construction of Biyagama 220/33 kV Grid Substation T-6 Augmentation of Dehiwala Grid Substation T-7 Second Circuit Stringing of Habarana - Valachchenai132 kV Transmission Line T-8 Augmentation of Madampe 132/33 kV Grid substation 3. The Polipitya GSS, Habrana GSS and Padukka GSS were funded under previous ADB projects. The construction of substation involves utilisation of existing CEB lands for 220/33 kV Biyagama, 132/33 kV old Biyagama, Kotugoda and Kolonnawa Old GSSs, 32/11 kV Colombo B GSS, 132/33 kV Madampe GSS. The proposed 220/33 kV Hambantota GSS will be built on 10 acres government land (owned by Mahaweli Authority as shown in the New Zoning Map of the Greater Hambantota Development Area - 2030). The GSS land in Gonnoruwa, Hambantota is within the Managed Elephant Range (MER) and the line is located outside as shown in Figure 11. Very small numbers of trees have to be removed from the land at Hambantota GSS. For any sub-project, acquisition of land will not be required from any surrounding communities. 4. In case of construction of new transmission line, the project would involve survey work, forest work and clearance, design and engineering of plant equipment, floating tenders for procurement, civil work related to 220 kV line and 220/132/33 kV GSS testing and commissioning. Total project work is expected to be completed in 36 months. 5. 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/assessment procedures 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, are taken into account and mitigated where necessary. Those impacts can be reduced through the use of mitigation measures such as correction in work practices at the construction sites, or through the careful selection of sites and access routes. 6. The proposed project will have number of positive impacts and negative impacts to the existing environment as follows: Significant improvement in the quality and reliability of the electricity supply to the project affected area according to current demand is the main positive impact. Removal of trees for the transmission line is the main negative impact to the proposed project area. 1 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. There will be loss of agricultural productivity due to obstruction and reduce the land of paddy fields as well as cutting of home gardens of coconut and timber trees which will be compensated based on established rates by CEB. 7. Benefits far outweigh negative impacts - The proposed project will improve operational efficiency and quality of power, reliability of the system and at the same time will reduce system losses. Supply of power to both the local areas and regions will boost economic development of the area by strengthening the power transmission infrastructure. Overall, the major social and environmental impacts associated with transmission projects 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. 8. Various mitigation measures to be taken prior to the project activities are listed in the IEE. Potential adverse environment impacts associated with transmission lines has been avoided or minimised through careful route selection. The alignment is sited away from major